> So, by '88, the Government was still out £400 million or so on its investment
Only if you consider its book value as a measure of success, but the aim of public ownership is not just to buy an asset and make a direct profit on share price. Losing all those workers in one go would have been catastrophic for the economy, it would have had to have bailed out the company in some form if it didn't buy it.
BL secured a lot of well-paying jobs for people who pay tax in the UK AND was profitable for much of its tenure. As a major manufacturer, it strengthened exports, bolstered manufacturing expertise within the country and generated soft power. From the government's point of view, this is certainly worth more than the book value alone.
As I said, it was unable to evolve as a business, it languished, and would have needed more investment and modernisation. It happens to private businesses too. The directors and govt chose to sell off the best bits rather than invest or seek more investment.
I understand the business case for this, but I think it was short-sighted: the long-term loss of a major UK manufacturing industry and soft power brands has not been a good thing for the country, in my opinion.
> Also-I'd love to know which Anglophone government has a record of success with: 1.) A fully nationalized company 2.) That is highly capital intensive 3.) In the consumer-product or durable-goods space
Privatised transport and utilities in the UK have been a very obvious and dismal failure. There have been no successes, as far as I'm aware. They cheap out on paying for critical infrastructure. They have to keep getting bailed out by the government, which is much more inefficient use of taxpayer money, and the profits go to shareholders instead of the taxpayer.
British Rail, British Telecom, Thames Water Authority, Post Office... were they more profitable as government agencies? No. Were there examples of mismanagement? Sure. Did they provide better value to the public? Absolutely.
Only if you consider its book value as a measure of success, but the aim of public ownership is not just to buy an asset and make a direct profit on share price. Losing all those workers in one go would have been catastrophic for the economy, it would have had to have bailed out the company in some form if it didn't buy it.
BL secured a lot of well-paying jobs for people who pay tax in the UK AND was profitable for much of its tenure. As a major manufacturer, it strengthened exports, bolstered manufacturing expertise within the country and generated soft power. From the government's point of view, this is certainly worth more than the book value alone.
As I said, it was unable to evolve as a business, it languished, and would have needed more investment and modernisation. It happens to private businesses too. The directors and govt chose to sell off the best bits rather than invest or seek more investment.
I understand the business case for this, but I think it was short-sighted: the long-term loss of a major UK manufacturing industry and soft power brands has not been a good thing for the country, in my opinion.
> Also-I'd love to know which Anglophone government has a record of success with: 1.) A fully nationalized company 2.) That is highly capital intensive 3.) In the consumer-product or durable-goods space
Privatised transport and utilities in the UK have been a very obvious and dismal failure. There have been no successes, as far as I'm aware. They cheap out on paying for critical infrastructure. They have to keep getting bailed out by the government, which is much more inefficient use of taxpayer money, and the profits go to shareholders instead of the taxpayer.
British Rail, British Telecom, Thames Water Authority, Post Office... were they more profitable as government agencies? No. Were there examples of mismanagement? Sure. Did they provide better value to the public? Absolutely.