Tuesday, September 16, 2008

Small Town League of London

"No to selling and no to …"

… this, that, or anything other change to London Hydro as it now stands, the graven parochial image of its interlocutors Stephen Turner and the Urban League of London.

While the costs of doing nothing are admittedly unclear and probably minor, Turner entirely misrepresents the costs of selling the utility:

"Selling would be short-term gain for long-term pain. … Londoners get a 1.5 per cent reduction on their … taxes because of the $6.2 million the utility pays to the city in interest and dividends. If we sold, we'd lose that ongoing source of revenue."
At the risk of repeating myself, the utility pays $2 million annually in dividends — a very modest return on recently valued at $246 million. The rest is interest paid to the City on a loan, an obligation that will either continue to be paid or be discharged to the City in any event of a sale. On the other hand, a $2 million annual dividend would be far exceeded by the annual $35-40 million savings on municipal debt-servicing obligations — $59.8 million in 2008 — if proceeds of a sale were applied to the City's $350 million debt.

1 Comment:

Fenris Badwulf said...

Sounds like the poison of Trotskyite revisionism, if you ask me.

London needs Stalinism, and the pure light of Heavy Industrial Development.

Aaaargh