NEWS


  • MASS RENATIONALISATION WOULD BE A £200 BILLION DISASTER ARGUES MP

    Mel Stride

    CENTRAL DEVON MP Mel Stride has criticised Labour Party plans to renationalise UK rail franchises, water companies and energy providers, as well as Royal Mail. His comments follow analysis from the Confederation of British Industry (CBI) which estimated the move would cost at least £196billion, plus ongoing running and maintenance costs. The UK’s national debt would rise by over 10% to cover the cost, and interest payments on this extra debt would cost another £2billion a year. The CBI also expressed concern over Labour Party suggestions that it would not pay full market value for the industries - if they didn’t, savers and pensioners with shares in these industries would lose out financially and an alarming precedent would be set that could deter future foreign investment in the UK.

    Mr Stride said:

    “The CBI is clear that renationalising these industries would be a £200billion disaster. Firstly, I don’t believe these industries would perform better if renationalised. For example, publicly-owned Network Rail is responsible, by its own admission, for 60% of all train delays in the UK. Secondly, there are far more important spending priorities for our country at the moment. I would much rather see more investment in education, healthcare, social care and green initiatives to reduce our nation’s carbon footprint.”

    The analysis by the CBI was based on the acquisition of the nine water and sewerage regional monopolies, the seven water-only companies in England, National Grid, the electricity transmission networks, the distribution network operators and gas distribution networks in England, Scotland and Wales, the rail rolling stock and Royal Mail. To read the CBI’s analysis visit www.cbi.org.uk


     







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