The expected announcement today of the privatisation of £16 Bn assets owned by the Government is reckless and irresponsible. It amounts to a firesale.
There is nothing wrong with selling off assets or Labour's privatisation programme as a matter of general principle, but it is incredibly poor timing. Right now the values of all assets classes are low thanks to the credit crunch and the recession. So it makes no sense at all to be privatising assets. As a nation, we simply won't get the value out of them that we could and should.
What's the better strategy? To live within our means and get the deficit under control, which is the underlying problem. To wait for economic recovery which will bring with it a recovery in the value of assets. That's likely a three to six year horizon, not the firesale we are witnessing. And to take great care before selling assets that touch and concern the security of the nation - like Uranium enrichment. But then Gordon Brown has form on this doesn't he? We all remember how he sold our gold reserves at the bottom of the market. And we are all too keenly aware of his scorched earth policy which will see Britain's finances shredded ahead of a possible change in Government next year. We are witnessing an extension of Brown's scorched earth policy. This firesale is not in the national interest.
