Competition needed for invention

AS we move deeper into election year, political parties are beginning to lay out some of their key policies before they draw up their final manifestos. One pledge that I am not happy about is the threat to re-nationalise our railway system – this time Keir Starmer announcing that Labour will undertake this policy, without compensation to the operating companies.

Now the reason that I am against such a pledge is that competition is essential in business to stimulate investment and develop opportunities. An industry nationalised tends to stagnate, for the competition element is removed completely. Mr. Starmer has oscillated in his opinion down the years, but over the past couple of months has again pledged to bring forward such proposals.

This time, though, there is the commitment not to pay compensation, thus at a stroke removing any enthusiasm for the current operators to invest for the future.

This is very bad news for the travelling public as the quality of service will inevitably drop.

The Labour conference last October also voted for the nationalisation of the energy industry, although no mention has been made of compensation. Other targets include our water industry, and every now and again a mention of road transport is made.

In my earlier years in business, I had to cope with nationalised road and rail industries, which was difficult and time consuming due to amounts of red tape and procedures that had to be coped with. The lack of competition meant that you had no choice whatsoever and one had to accept what was on offer.

I will therefore be very sad if whole sectors of industry become public owned, for I don’t believe it will be in the long-term interest of a competitive Britain in the world’s markets.

Not that private industry is perfect by any means – I strongly object to the way the water industry has neglected their pipe system over the years, have paid fat bonuses to management instead, and now are going to charge the general public a premium for water to repair their systems and invest in the future.

Competition forces invention, no matter what industry is under consideration, and to remove this stimulus only leads to complacency, lack of investment and a lack of enthusiastic service to the general public, the ultimate customer.

I hope before manifesto time Keir Starmer has another rethink.