That's My Boy
I was watching Newsnight with my 16-year old brother a couple of days ago, when they were discussing the fiasco over Thames Water, the company that has performed crap but still increases its profits.
This, of course, shows why the utilities should be nationalised, not run by private companies. The concept of competition doesn't work for utilities. A budding entrepreneur cannot set up another set of water pipes in people's houses, to give them a clear "choice" about which water company they use. The result is an entrenched monopoly, whose huge profits - of £346 million - mainly go to Thames Water's German owner RWE rather than to updating 160 year old pipes to cut down leaks. If Thames Water was nationalised, this £346 million could go to updating the pipes. Or to its customers, who are paying water bills 24% above inflation.
Having watched the Newsnight piece on Thames Water, my brother said, "More things should be nationalised, shouldn't they?" It was the happiest thing I had heard all day. Another convert!
-posted by Roy
