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Shocking.
Well given that we pay massive subsidies to private companies like Arriva I'd say it is quite shocking yes.
Arriva made profits (after tax) of between 10 and 17 million pounds a year 2008-2012, and receive around 130 million a year in government subsidy. So around 10% on average of government subsidy goes straight into profits for the company. Why is that considered reasonable?
grum, doesn't that rather depend on the amount working capital that Arriva had to employ and the cost of financing that?
Well the President of Arriva, Sir Tom Cowie was a major donor to the Conservative party so I expect they all consider it quite reasonable
and Arriva's owners have been oiling the wheels for a while
http://www.mirror.co.uk/news/uk-news/tory-stephen-hammond-wined-dined-2218142
arriva oiling wheels - nice understated punnery there Kimbers, carry on old chap 🙂
those profits are built on above-inflation ticket price rises and cutting services that aren't major arterial routes, right shower they are
And you will always get your money back as government bonds are risk free because the government can always repay them. Always, guaranteed, unlike a bond issued by a business, or a bond from a person.
Pls don't become a bond investor if that is what you believe - likely to get a nasty shock. The so-called risk-free rate, is anything but
The UK itself has defaulted/restructured debt in the past and is currently stealing money off savers via (the alternative hidden game that is) financial repression. Its a scam.
Risk-free - you really have to be kidding on that one! Still some investors are paying governments to borrow money of them at the moment which is even sillier.
So called free-markets!!! (as opposed to massively state-distorted ones)