‘Signs of the precarious financial situation that many privatised water companies have put themselves in have been clear for many years, as they loaded up debt to pay dividends. ‘
The Sun reports, ‘Government plans to temporarily nationalise debt-ridden Thames Water should it collapse ‘
‘One option that emerged from contingency talks is to place it (Thames Water) in special administration, in effect nationalising it briefly…’
The call for nationalisation of Thames Water in particular and utilities in general will no doubt reach a crescendo. State ownership isn’t the solution.
The replacement of capitalism by Socialism is.
Let us not forget that clean, sufficient water available on demand is an issue for many millions across the globe.
Privatisation of water utilities isn’t the main problem. The problem is that water fulfils the necessary functions of a commodity and ‘Commodity production is a hall-mark of capitalism.’ The shareholders of Thames Water, and others, are aware that its primary function is to make profits and increase their dividends.
This Blog has posted separately a piece from the Socialist Standard, November 1989 which explains in depth why water is a commodity.