When Profit Is The Primary Motive

The correct-wing Labor MP Angela Smith has written an excruciatingly poor article in the Guardian fear-mongering towards Labor’s popular manifesto dedication to convey the privatized water companies in England and Wales back under nationwide control. The most obvious error of all within the was the best way Smith referenced privatized water supplies in “Britain”, suggesting that she didn’t even know that water supplies in Scotland and Northern Ireland are nationalized. Is Germany the form of hellscape of contaminated water, overflowing sewers, and filthy rivers and beaches that Smith worry-mongers about in her article?

In fact it’s not. Smith’s conflation of public water provision with poor standards merely does not stack up, actually the precise evidence factors to the other: standards of largely public water provides in Germany are method greater than the privatized water firms in England. Another gaping flaw in Angela Smith’s argument towards public possession of the UK water provide is that chunks of it are publicly owned underneath the present system that she’s so desperate to defend, however just not by Britain!

When the Chinese sovereign wealth fund bought an enormous stake in Thames Water in 2012 the corporate was basically part nationalized underneath the control of the Chinese state. In the 4th paragraph of her article Smith admits the reality; that “EU regulations have played an important function in raising requirements”, which blasts another gaping gap in her pro-privatization argument.

In an effort to make this inconvenient fact fit her professional-privatisation narrative Smith then tries to argue that it’s only down to privatization that the cost of meeting EU standards have been met, however again, this is contradicted by the reality. Standards in Germany have really improved far more quickly the place solely a tiny fraction of local water firms have been privatized there. Smith’s whole argument that privatization led to a growth in investment utterly misrepresents the couldn’t have been afforded under public possession completely misrepresents the way the water trade is funded.

Water supplies don’t should compete for “scarce government assets” in opposition to “colleges and hospitals” as Smith claims. They increase their revenues by water charges in the same approach as non-public suppliers do but then save large amounts of money by not paying out ¬£billions in shareholder dividends and bloated executive salaries. ¬£2.3 billion per yr to water price payers. When profit is the primary motive, stuff like enhancing water quality and dealing with leaks inhibit the profit rate.

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Privately owned water companies have a main responsibility to create profits for their shareholders. Which means that any enhancements which have occurred since privatization have happened regardless of the non-public water corporations, not because of them. We’ve all seen countless examples of this sort of Orwellian reality-reversing propaganda from the Tories, but it is still fairly shocking to see it from a Labor Party MP. Even if Smith refused to admit the truth that she’s basically only a lobbyist for the personal water firms embedded throughout the Labor Party and parliament, the Guardian should at the least make Smith’s conflicts of curiosity identified to their readers.

When the Labor Party was controlled by the suitable-wing faction of the social gathering between 1994 and 2010 numerous professional-austerity, professional-privatisation neoliberals like Angela Smith had been parachuted into Labor seats. Nobody ever claimed that returning the Labor Party to its Democratic socialist ideas would be easy, but simply because a job is difficult does not make it not worth doing.

The UK has suffered 4 decades of unbroken neoliberal rule since 1979, resulting in an absolute mess of inequality, stagnating wages, failing public companies, collapsing productiveness, ruinous austerity dogma, and now the Brexit shambles. Something has to alter as a result of “extra of the identical” merely won’t minimize it any more. And by publicly fear-mongering about Labor’s Democratic socialist policies, Angela Smith is acting as a useful idiot for the laborious-right Brextremists. Another Angry Voice is a “Pay As You’re feeling” website. You can have entry to all of my work at no cost, or you’ll be able to select to make a small donation to help me keep writing. The choice is totally yours.