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This from Angela Hewitt, Ed
Remember, Remember the Thatcherite 80s
Q. Why hasn’t our country got any money?
A. Thatcher sold the family silver.
Did you know that all these companies were once owned by the public purse, Jaguar, British Telecom, Britoil, British Gas, British Petrolium, Rolls Royce, British Airways, Powergen, National Power, British Rail, British Coal, Water Board, Wireless and Cable?
Sold off by the Conservatives
They employed people and brought in profits on top of our tax revenues. But not any more. They were sold off by Margaret Thatcher and the Conservatives to raise one off funds to reduce the ever increasing – still increasing – public sector borrowing. She also believed that selling them off would make them more competitively priced, more efficient and productive and even bring in shareholder and company taxes.
They stitch us up
Thatcher was heavily influenced by American economist Hayek. A man with a fixed paradigm and hid under the guise of Classic Liberalism. He was opposed to Liberty and Democracy, what we call today community consultation, because it undermined a government’s ruling ambitions.
What the Conservatives are brilliant at are creating irrevocable schemes. Impossible to change or revert. They stitch us up. They are also good at manipulating the public with their marketing mantras. Remember “Get Brexit Done”?
“Popular Capitalism”
In the 80s the Conservatives managed to convince the voting public that selling off our public owned companies was for their personal benefit with the mantra “Popular Capitalism”. The Conservatives changed the voter’s thinking. Saying that even they, the ordinary person on the street can be a shareholder.
Do any of you remember “SID”? Another great mantra. In 1986, two years after the BT sell off the Conservatives launched “If you see Sid tell him” about the flotation of British Gas. We were sold an idea and one and a half million people bought shares. The whole concept of selling off the silver was fully bought by the voters, now, new little shareholders, with all profits going to their individual pockets not to the public purse.
While it’s true these profits are taxed there are ways around this thanks clever accountants and favourable lower taxes on shareholder profits.
Finishing the country off
The Conservatives’ third election victory gave them the confidence to finish the country off with the privatisation of British Steel, British Petroleum, Rolls Royce, British Airways, and utilities such as electricity and water.
They were though, losing public confidence during their fourth term, but Thatcher still defeated the miners, sold off British Coal, Powergen, National Power and British Rail. The NHS, very much on the list, and the Post Office escaped after a public outcry.
Everyone thought it was wonderful, they were like the middle classes and Margaret a scientist not an economist was fatally won over by profound capitalism.
Private Finance Initiatives
But that is just the start. With the silver sold off and no cash in the coffers to pay for improvements, road repairs, schools, hospitals, and developments the Conservatives came up with another plan of attack on what is left of the public purse – the tax payer’s contribution. PFI (Private Finance Initiatives).
Well done John Major.
Public purse cover PFI bank loans
In simple terms this is how PFI works. The contractor gets the Government job (ie build a road) the developer borrows the money from the bank to run/build the project. The Government then pays the bank back plus added interest.
Yes, really, and its inescapable. The contractor signs a detailed job-brief contract. If they fail on the contract the government can cancel it, but our public purse still has to cover the bank loan. Whether the contractor succeeds or not the Government pays, including the interest.
Labour continued with PFI schemes
Labour however, is not a particularly innocent party in this madness. They continued the PFI schemes after they won the election.
Although with the silver gone, alternative options were limited. Finally Phillip Hammond saw the light and ended the “scheme”.
Crawling like a tapeworm through our society
With both Privatisation of our public assets and the PFI scheme, we were done for. While private corporations sit on trillions of euros, trillions of dollars and billions of pounds, helping no one, government borrowing is still in a big mess.
Capitalism has been a slow insidious process, crawling like a tapeworm through our society, hardly noticed until now.
The detrimental impact of Conservative actions in the 80s has now seeped into every corner of our world, schools, NHS, decent employment with decent pay and bills gobbling up what we manage to earn. And, with no way out. Linear Capitalism is here to stay.
Shame on those involved
Shame, shame, shame on all politicians in all parties that have been in power and have had a hand in this 40-year long travesty.
Reversing these negligent decisions is pretty much impossible. One party suggests re-nationalising water and another tells us they will create a government controlled energy corporation.
Will it happen, will it work? What’s the cost? Or are we well and truly stuffed?
