Heirs to Thatcher ignore her lead on industrial policy

00:00

{"text":[[{"start":12.7,"text":"The writer, a former FT editor, is head of industrial policy at Policy Exchange, a think-tank "}],[{"start":19.86,"text":"Among the issues facing the Conservative leadership contenders there is one that has received almost no attention: industrial policy. "},{"start":27.002,"text":"This topic, while not in the same league as the energy crisis, will present the government with tricky decisions in the coming months. "},{"start":33.694,"text":"They are important, not least in showing how far the next prime minister believes in an active role for the state in influencing the structure and performance of particular industries. "}],[{"start":43.41,"text":"Margaret Thatcher, admired by both leadership candidates, believed that the government had no business deciding that one industry was more important than another, and therefore deserving of special help. "},{"start":53.739,"text":"She also insisted that no obstacles should be put in the way of foreign acquirers of British companies — that put her at odds with Tory MPs. "},{"start":60.831999999999994,"text":"She was greatly irritated when backbench pressure forced her to abandon the sale of parts of British Leyland to Ford and General Motors. "},{"start":67.67399999999999,"text":"As she wrote later, a kind of “pseudo-patriotic hysteria” had swept through politics. "}],[{"start":73.49,"text":"But the Conservative party has shifted in a non-Thatcherite direction. "},{"start":77.44399999999999,"text":"Since Theresa May’s government, substantial sums have been spent on developing batteries for electric cars. "},{"start":83.08699999999999,"text":"This has included both funding for early-stage research and direct support for commercial ventures, such as Britishvolt’s battery factory in the north-east. "}],[{"start":91.97999999999999,"text":"The government’s case is that it will help British assembly lines transition to electric cars and contribute to decarbonisation. "},{"start":98.65899999999999,"text":"Similar considerations apply to the Port Talbot steelworks in South Wales; the owner, Tata Group, has asked for help in financing the replacement of blast furnaces with a less carbon-intensive technology. "},{"start":109.62699999999998,"text":"Should steel have a higher priority than others facing similar problems? "},{"start":113.53199999999998,"text":"Despite lengthy debate, no clear definition of a strategic industry has emerged. "}],[{"start":119.22999999999999,"text":"As for foreign takeovers, here, too, the influence of Thatcherism appears to be fading. "},{"start":125.24699999999999,"text":"In the pre-Thatcher era, merger control in the UK was widely regarded as arbitrary and unpredictable, with the Monopolies and Mergers Commission (now replaced by the Competition and Markets Authority) using a range of public interest criteria. "}],[{"start":138.39,"text":"The commission was expected to assess the suitability of the acquirer and make predictions on the consequences of the takeover — a process that provided ample scope for lobbying. "},{"start":147.36899999999997,"text":"This changed in 1984 when trade and industry secretary Norman Tebbit announced that references to the commission would be based primarily on the effects on competition. "},{"start":156.124,"text":"Although the legislation has been modified, competition has remained the focus in merger control, in foreign as well as domestic takeovers. "},{"start":163.654,"text":"Consistent policy in this area has helped to make the UK an attractive destination for acquirers. "}],[{"start":169.91,"text":"An important change took place at the start of this year with the National Security and Investment Act. "},{"start":175.214,"text":"This gives the government wide powers to review and prohibit takeovers that might pose a risk to national security. "},{"start":181.232,"text":"Like the word “strategic”, national security is open to interpretation; an interesting test will be the expected decision on whether to unwind the acquisition of semiconductor company Newport Wafer Fab, by a Chinese-owned company. "}],[{"start":194.18,"text":"Some observers believe that the new act will deter potentially valuable foreign acquisitions. "},{"start":199.447,"text":"Others argue the government should go further in taking powers to block foreign acquisitions of companies with special importance for the UK economy. "},{"start":206.727,"text":"That would involve greater involvement by ministers and the politicisation of merger control — an outcome that should not have much appeal for the heirs of Thatcher. "}],[{"start":215.24,"text":"True, the current trend in the US and the EU is towards more interventionist industrial policies, with subsidies for strategic industries and stricter curbs on takeovers. "},{"start":224.669,"text":"It does not follow that the UK should move in the same direction. "}],[{"start":228.07000000000002,"text":""}]],"url":"https://creatives.ftacademy.cn/album/001097120-1661822533.mp3"}

您已阅读100%（5023字），剩余0%（0字）包含更多重要信息，订阅以继续探索完整内容，并享受更多专属服务。

Heirs to Thatcher ignore her lead on industrial policy

FT商学院

您可能感兴趣的文章