How the Conservatives can avoid the horrors of renationalisation

SIR – I was sad to see in Fraser Nelson’s excellent article (Comment, September 29) that research by the Legatum Institute had found that three quarters of the public favour the renationalisation of privatised industries.

In 1987, after 25 years in nationalised industries, I moved to the water authorities to help in privatisation. I hoped that their privatisation would eliminate the main disadvantages of nationalisation – political interference, Treasury constraints, and weaknesses such as undue trade union influence.

Unfortunately the chosen model of privatisation was as public limited companies. Treasury officials thought this model would put pressure on the boards for continual improvements in efficiency. It has resulted in greater efficiency and investment, but has also produced excessive top salaries, insensitivity towards customers, foreign shareholding influence, with pressures to increase profits, and unnecessary, expensive borrowing.

A Conservative government should consider a new private shareholding model, retaining independence of government, but changing the focus towards public utility responsibilities and quality of customer service.

Current shareholdings could be transferred to slightly less profitable utility shares without compensation to shareholders. Independent regulation would continue, albeit with a remit concentrating on service quality.

If a Conservative government does not explore some such alternative, we will probably see renationalisation with all its horrors.

Shrewsbury

SIR – The Government risks losing the “narrative war” on public spending, particularly with regard to younger voters, the very folk who will suffer over the longer term.

The national debt grows at an unprecedented rate, now standing at £1.83trillion and costing more in interest than we spend on defence.

To inform decisions on tax and spend, it would be prudent for the Office for Budgetary Responsibility to present objectively the economic implications of racking up debt.

Failure to engage voters with such a reality-check increases the risk of irresponsible populism, such as Jeremy Corbyn’s fantasy-land economics. Wherever Brexit takes us, the nation must learn to live within its means. It will not be easy, but it is the least we owe those coming after us. Colonel Rob Davie (retd)

Salisbury, Wiltshire

SIR – The way Theresa May looks has changed from the lovely Amanda Wakeley and Roksanda Ilincic blocked colour dresses that she used to wear. She is looking more like “Mutti” Merkel in short jackets and dark trousers. Perhaps that is how she feels.

The jolly shoes are still about but don’t suit the frumpy suits. Bring back the dresses, plus the legs, and grow the hair a bit, with more red lipstick.

Forest Row, East Sussex