So, lets talk about this fair prices for the ferries noise, which keeps on popping up. Too late for that Im afraid - that boat has sailed Wightlink is owned by Macquarie European Infrastructure Fund Red Funnel is owned by Infracapital Both of them are private infrastructure investment funds - they specialise in buying infrastructure providing businesses to wring the most money out of them in profit (kinda like Eurovia who are making profit for a foreign company on the improvement of our road system since April 2013). but we could subsidise them! First off - subsidise is a dirty word. In the UK nationally, it stinks like state intervention in the free market - this is a big no no for Thatcherism, whether its wearing a Red, Blue, Yellow, or idiotic Purple hat Secondly were supposed to be in a time of austerity (for the poor, not the rich - they need tax cuts to keep them in the UK, see). Unfortunately in times of austerity there just isnt money available for state subsidies for very limited market public transport! Also, why should the British Public subsidise the Australian-owned Macquarie group to operate our ferries? Why should the British Public subsidise the Infracapital funds corporate stakeholders (read corporate bankers bonuses) to operate our ferries? Ironically Infracapitals investors include HBOS, which is part-public-owned after the 2008 bail-out, but lets see the government build up an appetite to ring fence Red Funnel as owned by HBOS within Infracapital and then try pulling the HBOS-owned dead carcass of Red Funnel out of Infracapital and then out of HBOS into direct public ownership! Ill bet thats right up there in their prioritise list, next to the porcine flight project. We shouldnt subsidise these corporate machines is the answer - they are money-making machines with no interest in our community (except for the cash in our pockets). Our taxation, if used to subsidise the ferries would be skimmed off by them. No doubt they would use terribly legitimate-sounding rules and regulations to explain why - after all, they can afford to hire the best accountants, PR and spin doctors. They wouldnt be able to reduce the cost of the tickets, but maybe they could see their way to some late night boats? No, that doesnt work for people who want to carry out their personal affairs and businesses at times that suit them - thats still running the entire ferry operation for the convenience of these profit making machines. but they have so much debt, they cant even make money now Whoah, hold on a moment! Where did these debts come from? Now, without going in to an in depth investigation of Wightlink and Red Funnels accounts, I dont know precisely. HOWEVER, its common practice for these funds to saddle the businesses they buy with at least a portion of the purchase cost of the business as a debt. After all, they were good enough to buy these companies - they owe them, big style! Normally the debt is well judged and it wont bring the company to its knees, oh no. Like the best parasite, what it will do is ensure that that company doesnt make inconvenient profits, on which nasty corporate tax would be paid (which funds boring public sector things, like the NHS - where are the bonuses in that, eh?!). Instead it has large interest payments which must be made on the loans, which are with its owners. Kiss all the operating profit goodbye, operations team at the ferry companies - thats got to go to pay your bond into corporate slavery. So, whilst these companies are in slavery to these corporate funds, we will never see a fair price for tickets. They wont sell the businesses if the ferry companies can pay their loan charges. If there are subsidies made to the ferry companies, which mean their operations might look like theyre becoming more profitable - bring in the accountancy firms! Its OK - some more debt can be generated from somewhere to keep those operating costs nice and high, so we couldnt *possibly* reduce fares - itd bankrupt us! Also, maybe someone with more time than me could have a look to see if Infracapital or any of the Macquarie companies have donated to the Conservative party funds? Its not beyond the bounds of possibility and it really doesnt do to spend too much time trying to screw those nice party donors who help keep you in office, does it? So, there are a couple of reasons fairer prices for (privately owned) ferries will never be successful and why there will not be a re-nationalisation of the ferry companies to help us, those who use them.
Posted on: Wed, 19 Nov 2014 00:18:08 +0000
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