SIR – Philip Bird (Letters, December 2) asks why Lib Dems and socialists “bang on” about ownership of essential services like water. It’s because we don’t want the poor ripped off.
True: Governments pre-1980 did not allow adequate spending on water infrastructure. The Thatcherites, however, got business people to run utilities properly – imposing price rises and borrowing heavily in preparation for privatisation.
Privatisation itself – pure dogma – created (false) confidence, raised cash and kept Thatcher in power. Privatisation as such brought nothing. It did not even cover the debt built up to fatten the industry for privatisation. It did take away many billions in dividends.
Now, Yorkshire Water is back in public hands – the Government of Singapore – and with debts more than 100 times that of YW Authority in 1980.
Borrowing and after-dividend profits – virtually guaranteed by regulator Ofwat – have funded Investment, not new money from shareholders.
A “trust” effectively runs Welsh Water, paying no dividends – a better model for essential services. While Yorkshire Water considered becoming a trust, it did nothing to take regulator and critics along and was taken over by a foreign Government (among others).
Now, take power.
John Hall, Pennithorne Avenue, Baildon
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