Free-market think tank the Adam Smith Institute today published a report advocating the privatisation of, well, practically everything, reports Liam Thompson.
Not content with a public sector due to be cut back massively during this Parliament, right-wing think tank the Adam Smith Institute (ASI) today published a report advocating the privatisation of, well, practically everything. The report, “Privatisation Revisited”, recommends the Coalition Government sell off a huge range of assets and organisations that will generate a one-off £90 billion windfall for the public purse and, it claims, “rejuvenate” the British economy.
The hit list, drawn up by Europe’s self-appointed “favourite think tank”, includes Network Rail, the East Coast Main Line, BBC Worldwide, Trust Ports, the National Air Traffic Services, Scottish Water, Ordnance Survey, The Royal Mint, British Waterways, Royal Mail and Channel 4 (notably doing away with its bothersome “Public Service Remit” to encourage its sale).
It also recommends that public shares in the major banks, such as Royal Bank of Scotland, Lloyds TSB and Northern Rock, should be returned to the private sector – without as much as a hint to the market failure of 2008 which forced a Government bailout.
Written by City analyst Nigel Lawkins, the report also shows worrying long-term ambitions to privatise the entirety of the London Underground system (despite the failure of Metronet), creating a franchise system on Britain’s highways, all of the BBC and selling off 10 per cent of the Government’s property portfolio.
The report waxes lyrical about the first great wave of privatisation under Margaret Thatcher in the 1980s. Somewhat strangely, the report forgets to mention how North Sea oil revenues propped-up the Thatcher Governments and how ropey it is to fund revenue expenditure by selling assets, which after all, you can only sell off once.
The ASI report does, though, confess that:
“During the mid-1990s, UK privatisation seemed to lose its way. Admittedly, the most attractive businesses had already been sold and the privatisation cupboard was looking rather bare. Nonetheless, there were still some valuable assets that remained within public sector ownership – a scenario that remains to this day.”
Most importantly, however, the report completely ignores the social effects of widespread and rapid privatisations, from which much of the country is still recovering, begging the question: what wouldn’t they privatise?!
19 Responses to “Sell! Sell! Sell! Think tank urges coalition to privatise almost everything”
Benjamin
They would not privatise the army and police, although they would privatise both these functions around the edges – a process that, incidentally, Labour embarked on.
George McLean
So no answer to my genuine question at (1), then, but a number of unconstructive anonymous responses. Come on, people …!
Mr. Sensible
Mr Mouse I would sooner have a public service state broadcaster than a Fox News style one. I think I read somewhere that News International own 37% of the UK Newspaper industry alone. Is that healthy?
And lets remember that after 2012 we will effectively have no choice but to pay Sky or whoever if we want to maintain a TV service.
On the railways, I find it disturbing, though not surprising, that the Adam Smith Institute wants to revisit privatizing Network Rail again, given what happened last time and the appalling safety record that Network Rail inherited from Railtrack in 2001.
And on London Underground, like this article says look what happened with Metronet. And in my view 1 of the things that is good about London public transport is that the mayor can set ticket prices and be held directly accountable for it.
This kind of comment from the ASI is totally unsurprising.
BTW, since we’re on R4 comedy ‘Just a Minute’ is my preference.
idle pen pusher
George McLean – so you want someone else to look at their website, find their telephone number and ring them up and ask the questions for you?
What exactly is stopping you from doing that rather than simply sounding off about how other people aren’t catering to your curiosity?