Third, as I have said for a long time, this is the wrong approach. Companies worth saving do not need loans now. They need equity. That is what the government should be supplying. Take stakes of not less than 25.1% to have some control. Appoint directors, including one from the workforce. Require real business plans, and monitoring. Hold the stakes in a National Wealth Service. Build for the future, and give the votes of confidence that equity provides rather than the kisses of death that extra debt burdens create in the corporate sector.
The trouble is, of course, that the Tories and the Treasury are a lethal combination. Neither understand business. And it’s showing.
Government ownership – and direction, that’s what the 25.1% is for – of swathes of the economy has been shown not to work well.
Which is why people don’t want to do it.
Of course, there’s another criticism of the idea possible. Snippa insists that neither the Tories nor the Treasury understand business. Yet he wants the Tories and the Treasury – for it will be them for a few years at least – to be directing all those businesses. Not going to work out well, is it?