YP Letters: Bill for Yorkshire Water privatisation fails to add up

YORKSHIRE Water’s chief executive, Richard Flint has been boasting of his company’s performance and lower bills than most water utilities (The Yorkshire Post, February 16).

He doesn’t say that bills should be lower still, with the utility returning windfalls to customers resulting from tax and interest rates being lower than Ofwat assumed when prices were set.

Another windfall results as the utility uses more cheap debt finance than assumed by Ofwat. Owners, including the State of Singapore, aren’t investing much equity (i.e. reinvesting profit).

Ofwat allows higher profits to finance a given portion of equity from owners. Owners use more debt and pocket the extra allowance for equity!

So much of shareholders’ funds have been swapped for debt that their investment in Yorkshire Water is less than the value put on it by Ofwat fter early trading. This is true so long as one ignores the clever way that privateers have increased “shareholder value” by simply revaluing assets. This allows them to borrow even more (and pay higher dividends). Debt is already eight times the “huge” former water authority debt on privatisation. This must be financed and eventually repaid by customers.

So much is wrong with the privatised utilities – and their regulation.

From: Mr G Watson, Grove Mount, South Kirkby.

I WRITE with regards to the letter from Richard Flint saying water bills will rise on April 1 by £5 to £366. I live in an ex-council property in one of the poorer parts of South East Wakefield. Would he explain to me why my bill has risen £12.80p to £528?

Tories not a threat to NHS

From: Adrian F Sunman, South Collingham, Newark.

AS a lifelong user and supporter of the NHS, as well as a card carrying Tory, I read GP Taylor’s column (The Yorkshire Post, February 17) with ever increasing incredulity.

He seems to imagine that the Tory government is intent on destroying the NHS, an institution treasured by most of the people who elected it.

Would that be the same Tory government which has just awarded junior doctors a 13.5 per cent pay increase and a 19 per cent hike in an already generous entry-level starting salary, as well as “premium rates” of pay for much weekend working?

To describe a pay award which is breathtaking in its generosity compared to what most workers in either the public or private sector can expect to receive as an “attempt to break the NHS” is stretching the bounds of credibility a little too far.

In fact it is nothing short of an insult to people who are genuinely low paid, not just a little less generously rewarded than they’d like to be. I understand Mr Taylor is a former clergyman. His logic certainly passes my understanding!

Division on disarmament

From: Nigel Boddy, Darlington.

IN the late 1950s and 1960s, a number of Labour figures were alarmed about splits in the party over unilateral nuclear disarmament.

I picked up one of the two volumes of Michael Foot’s great work on Aneurin Bevan the other day and read that in 1957 my cousin Sam Watson, leader of the Durham Mineworkers, was brought in to try to restore unity.

Sam failed to work his usual magic on this occasion and the Labour party continues 60 years later to still have the debate. All a person can do as a Labour supporter is to join the party, go along to meetings and vote for mandated conference delegates, who will represent their point of view at a Labour conference.

To do that first requires Labour supporters to make up their own mind of course. The agony of the Labour party is the same dilemma most right thinking people feel. No one wants nuclear weapons. Can we do without them?

Just desserts of being posh

From: Brian Sheridan, Redmires Road, Sheffield.

JAYNE Dowle’s remarks about posh people shopping at Waitrose or Marks & Spencer (The Yorkshire Post, February 15) reminds me of an experience at the now defunct Somerfield’s many years ago.

I couldn’t help overhearing a conversation between a small boy who, from the way he spoke, must have been destined for Eton or Harrow, and his well-heeled father. The boy was lingering at a selection of desserts. “What’s that, daddy?” he asked. “It looks scrumptious.”

“That’s a Pavlova, dear, it’s awfully posh,” replied the father doubtfully. “But daddy,” came the reply. “We’re posh, aren’t we?”

At a standstill

From: Peter Fawcett, Cleckheaton.

I’VE been on a train at King’s Cross London since 8pm. Virgin have just announced another 45 minute delay as the train has no driver and no guard. You couldn’t make it up.

Bags that last

From: David Treacher, Hull.

I AM out and about everyday doing my shopping and still see customers buying a plastic carrier to carry their products home. Why don’t they buy a cloth one? They are far stronger and last years and look nice.