Why not nationalise Grangemouth after British Steel takeover?

by Nora

For the Scottish government, nationalisation has been a last resort, used at times of crisis or service failure.

Public control of companies is not part of its ideology, though it has reached for that lever when crisis struck at Prestwick Airport, Ferguson shipyard and when ScotRail was deemed to be failing in private hands.

Nationalisation carries the weight of memory from the 1970s, when it got a bad name, for loss-making, poor productivity and poor quality.

But times have changed, in many ways. It is not just that memories of the seventies have faded like a cheesecloth shirt, but that countries are now in the business of protecting strategic industries.

Political leaders are now hauling in supply chains that have adapted to stretch around the world and now look vulnerable to the whims of foreign leaders and the realignment of big power blocs.

In response to international competition, relying on increased productivity is proving ever more difficult to achieve.

Offshoring jobs is politically more contentious, and the rising demand for a coherent defence industry at or close to home has exposed gaping holes where supply lines ought to be.

And in the drive towards replacement of oil and gas by greener energies, they recognise the role of the state is vital in making that happen.

Ever more regulation and price signals from carbon to energy may not be enough to cut it. So the leftist dream of taking ownership of the commanding heights of the economy do not look so dangerously radical.

That's how even the Reform UK party swung behind near-nationalisation of the Scunthorpe steel works, with a special session of the Westminster Parliament on Saturday.

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