29 Jul 2014, 1:49 pm
#202
(29 Jul 2014, 7:24 am)Dan The usual 'higher prices but lower fuel costs' statement was you being positive? 
My only negative post was in response to aureolin, which suggested to retain the same amount of champagne and caviar for shareholders (or, as in your explanation, an increased amount), the company would not invest as much into new technology, as they're operating loss-making services commercially as a result of unfair bids put in by smaller firms..!
My comment was more sarcastic than anything. It wasn't intended to bring up a further debate about people's difference in views. It's healthy that we have such a wide range of views on here, but we shouldn't deem what are traditionally socialist (or Marxist) views, to be negative.
I didn't make any suggestion about reinvestment. That's an operational decision, and often depends on the rate of depreciation accounted for. The comment was more a 'Poor them. They've chosen to operate a service below their target profit margin'. Which it should be noted that Nexus didn't have them a gun to their head to force them to do so. It's a deregulated market and they can operate what they want to as things stand.
Local authorities (whether we agree or disagree) are expected to pick up the pieces where commercial operators can't run (what they deem not to be) a viable service. In this instance Nexus have done just that, and complied wiyh all relevant legislation when going out to tender. GCT in this instance have submitted either the lowest cost of most economically advantageous tender, and therefore won. That's the rules.
I think it's unfair to suggest that smaller firms have put unfair bids in. They'll have done what everyone else has done, and put in a bid (or quote if you like) based on what they can operate the service for. If others aren't competing with the bids of smaller firms, then they need to review their operation and make sure they're competitive in future. That's if they want to continue to go for government tenders that is. They may decide it's not for them.
