The privatisation story

The Institute of Government held a 'policy reunion' last night for ministers, civil servants and others involved in the Thatcher privatisations. Talking to Andrew Gamble beforehand, we agreed that it all now seemed very long time ago. It was very difficult to convey to contemporary students just how nationalised industries had dominated the economic and political landscape.

Privatisation had been selected because it was a policy success selected in a survey of PSA members. The story told last night was a familar one: privatisation had not been a significant part of the Government's original plans, but had developed into a political and administrative programme. There were a variety of motivations: raising money; reducing the role of the state in the economy; curbing the trade unions; widening share ownership (although this did not really succeed in the longer run); building political support etc.

The general tone of those involved was rather self-congratulatory and they explained the failure of the programme to do enough to boost competition in terms at the pace at which decisions had to be taken and the influence exerted by the existing managements of the industry who did not want competition at any price. Breaking up an industry would have extended the time line for a privatisation from two to five years and would have meant that the key BT sale, which really started the process, would have not gone ahead.

While I did not obtain any major new insights, there were some interesting points of detail which I may deal with in a subsequent posting.

Rail privatisation

Dinner last night at Tom's Bar terrace at Somerset House. Perfectly acceptable nouvelle cuisine but a very noisy 'disco' background run by the prototypical middle aged bloke with designer shades, a shaved head and a trilby perched on top. No doubt he thinks he is very cool and a great hit with the young clientele.

Above the noise (we did get the nearest speaker turned off) I had an argument with an opinionated American (sometimes I ungraciously wonder if there is any other type) about rail privatisation. He said it was an unmitigated disaster: I thought it was more of a curate's egg.

As it happens the service to Leamington has greatly improved with the arrival of Chiltern Railways, now owned by Deutsche Bahn. There is, however, a less frequent alternative service run by the Wrexham & Shropshire company which I caught this morning.

They are using 1970s coaches which are slightly the worse for wear (despite a new external livery) and have seat numbers put up with paper and sellotape. I had forgotten that the arm rests don't move, but the seat was quite comfortable and there was a table. The train was moderately full. One of the nice features was a full service buffet where the train manager was serving behind the counter.

We went quite fast to Banbury, but then were diverted into a side platform. It seemed as if the timetable had a slot for the engine to take on water (Banbury is one of the few stations where it is available on the line) while in another platform we were overtaken by a Virgin Cross Country service.

It was all a bit retro, including having to lower the window to open the carriage door (health and safety?) but then I am up for that.