Bungling Labour

IN PROPOUNDING his Utopian nationalisation view, Labour’s John McDonnell claims any takeover of a privatised utility company would be cost-free and shareholders would be recompensed with government bonds.

But this will place a cost burden on future generations.

Once a government creates an unsustainable debt mountain, it will find further financial support is available only at a much higher rate of interest.

It is facile to suggest consumers will have any say in how much they pay. The power will be in the hands of the workers, who, as they have done so often under previous Labour administrations, will demand higher wages under the threat of strikes.

Just look at the power exercised by Aslef and the NUR in disputes with privatised regional rail companies. How will the annual ‘ profit’ be sufficient to meet the government bond interest, lower consumer bills and increase worker wages?

The bonds will have a marketable value, so it is not inconceivable that a foreign government could acquire a controlling holding.

DONALD COLEMAN, Eynsham, Oxon.

THE Shadow Chancellor’s approach to the former nationalised industries has much to commend it, but is too generous to shareholders.

Government bonds don’t appear to take into account the huge sums paid to directors and shareholders in salaries and dividends since they were privatised.

Privatisation of natural public monopolies operated in the common interest effectively turned customers into cash cows for a few people who had the interest, ability and funds to buy shares. The proposed

stakeholder-isation of these services will restore some justice, but the companies will be getting off lightly. GEOFF NAYLOR, Winchester, Hants. RENATIONALISE all the utilities for nothing? Who worked out the numbers — Diane Abbott?

STEPHEN GERRARD, York.