SIR – I’m delighted by Yorkshire Water’s success with nearly a billion pounds of our money! (T&A, December 13, “Water bills set to fall...”). With current prices at record highs, they should average out lower to 2020.
Managers appear coy about success for shareholders: private monopoly returns, (since 2008 to the STATE of Singapore and partners), have averaged about 2.5 points or 20 per cent above the FTSE All Share Total Return average!
YW managers and Thatcherites must now accept that public ownership is not necessarily bad. Even poor management and past inefficiency was arguably better for the economy and Balance of Payments than buying ever more essential services and goods – including power and water – from foreigners.
YW Services’ current net debt of three-and-a-half BILLION pounds worries nobody. Debt spreads the cost of long-lived assets fairly across generations. Relatively tiny former water authority debt was falsely used by Thatcherites to rubbish public ownership.
Welsh Water is run by a not-for-dividend, de facto trust, giving rebates or charging less. (Well-paid) managers and Regulation ensure efficiency. Welsh Nationalists used to blow-up pipelines carrying water to England. Seems like they drew a line at having to pay over the odds for water services to the English and other foreigners! (More fool us!)
John Hall, Pennithorne Avenue, Baildon
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