RE: Performance18 May 2024 10:04
Roland, that's a fairly consise and comprehensive view of the business over the last fifty years. I joined in the late '70s and retired on my due retirement date last summer with a full pension.
You are right about the USO as well. The business was sold to the shareholders with the understanding that the USO be adhered to and you are also right that as the business has moved on then something needs to change however this is not in the gift of the shareholders (with the possible exception of one) but the board of directors, OFCON and the UK Government. There have been critics on this platform posting that the USO will change and how simplistic this would be however they have been saying this for a few years now despite others like myself (labelled an old Marxist) posting back that it's not that easy as Moya Greene was banging her drum for reform since before privatisation and still failed to succeed after several years. I suspect that some of these posters have purchased on the gamble that USO restrictions would change and the SP would rocket on the back of massive profits. It's also interesting to note that Seidenberg has apparently discovered that there could be around £300m in savings to be made within RM without the need for the UK Government having to change the USO. If that's the case then how come this was overlooked by the previous three CEOs?
As for Dave Fraud telling everyone that RM could go under with tens of thousands of job losses, that simply isn't true and the USO agreement (which some would insist can simply be ignored) fully outlines the procedure. It's worth noting that OMERS, who hold a 32% stake in Thames Water which was valued at £990m in 2022 have written down their entire holding to zero, so when Thames Water finally admit defeat will there be massive job cuts or will the vast majority of the staff still be required to keep the business running when special measures are applied? In my opinion, they would possibly require more staff in the right areas to correct the lack of investment in the sewerage side which is much more costly than the supply side.
No doubt you will now be labelled as an old Marxist (by the forum moderator) like myself and Derek and told that our opinions are incorrect or irrelevant and that only their views count but hey ho, hopefully this will all be DKs problem one day and we can sit back with our profits and watch the show......
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