Advertisement

Evening Standard comment: A nationalisation plan that would harm us all

The vastly expensive plan unveiled today by Labour to nationalise this country’s broadband network and provide every household with free full-fibre internet access by 2030 is certainly one of the party’s most eye-catching proposals, even for a general election campaign littered with extravagant promises. But, as with most policies that involve voters seemingly being offered something for nothing, it is also entirely misconceived and impractical. Instead, it amounts to an idea that, if implemented, would inflict catastrophic harm on this country and its inhabitants in numerous ways.

One obvious concern is the astronomical cost. Labour says that speeding up the introduction of superfast broadband would cost £20 billion, while the bill for nationalising BT’s Openreach, which controls most of the full-fibre network and is currently valued at as much as £25 billion, would be set by Parliament. Either way, the public would pay, either directly through the compensation paid to shareholders under Labour’s plan, or indirectly through the inevitable hit to BT’s share value and the pension funds that invest in the company. Millions of shareholders and many more people, rich and poor, whose future comfort will depend on the value of their pensions, would be losers.

That is bad enough, but Labour’s plans would be disastrous for this country’s tech sector — currently one of our best national successes — and frighten off investors, including many from overseas who would inevitably not want to put their money into this country with a risk of expropriation hanging over them. The tech industry representative group, techUK, makes precisely this point, warning that investment into the “new and innovative companies” that compete with BT would dry up and set back, rather than accelerate, progress. Its assessment is correct and a further reason why Labour’s plan would be counterproductive and harmful to the public it claims it wants to help.

The proposal would also be a further huge transfer of wealth from Londoners and other urban dwellers, whose taxes and wealth would largely pay for the plan, to rural residents, adding further to the burden on our most successful wealth creators.

None of this is to say, of course, that more should not be done to speed up the provision of full-fibre services. BT has been too slow at times and this country lags behind, unacceptably adrift of European nations such as Spain. Faster progress is needed. But Labour’s plan is not the way to achieve it.

Cut cars in Royal Parks

The promise today by the managers of London’s Royal Parks to examine ways of stopping their green spaces being used as “rat runs” by motorists seeking shortcuts is welcome, and follows a public consultation in which a large majority called for action to improve their tranquillity. We agree, not just because of the worryingly high levels of pollution which already blight some of the eight parks, but because these wonderful spaces should be a place in which the public can enjoy peaceful respite from the otherwise frantic pace of life in this city. Managing this is obviously much harder when cars are roaring past.

The details of how to achieve change now need to be worked out, and consideration will have to be given to where any displaced traffic will go. But we look forward to the day when Londoners can enjoy their Royal Parks in even greater glory.

Euro 2020 thrills ahead

England's fine 7-0 victory over Montenegro last night brought qualification for next summer’s Euro 2020 tournament and means some of our group games will be played at Wembley, which also hosts the semi-finals and final. On these dark winter days, it’s an exciting prospect for all to relish.