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Bern, it's not as simple as that. You're correct in terms of the water companies not managing water resources properly but combine that with a carbon obsessed government beholden to freakish groups like the world wildlife fund, greenpeace and z-listers such as Prince Charles and this heady brew leads to disaster.
Remember that imposing a hosepipe ban costs nothing. No need for infrastructure, no cost for building reservoirs or desalinisation plants so lots of money saved and, hey, carbon emissions down -hurrah the planet is saved.
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