Over the last few years it has become popular in government to engage a business tsar. I’ve never been entirely sure why Lord Sugar or Baroness Brady should have been characterised as autocratic supreme leaders within such a bureaucratic setting. They may well perform that dictatorial role at the top of their own business empires, but inside government they could only ever be oxymoronic advisory tsars.
Many examples exist of MPs who have foregone their elected office to work in the private sector: former Labour MP Jamie Reid to a job in the nuclear industry and George Osborne has travelled a lesser distance, perhaps, to edit the Evening Standard. This is all perfectly reasonable to use skills and experience gained in public life to earn a living and feed one’s family. It only becomes more murky when an upright individual such as Ian Hamilton is given a government post in charge of Deregulation (following regulation never having been one of Mr Hamilton’s strengths).
There is, however, a fundamental difference between running a business and running government. Motivation in public office must be to act for the public good. The public are not customers, they are not sales prospects or opportunities. They are, to quote I, Daniel Blake, citizens. Government must act on behalf of every citizen. Civil servants who oil the wheels of government and who make the State function, do so because their skill set is often to serve several masters and to ease the inevitable transitions from one political flavour to the next more-fashionable one.
Successful entrepreneurs are motivated in some greater or lesser degree by profit. How they chose to use that profit may vary. There are very successful business people who use profit for social benefit, either by treating their employees well or by maintaining high ethical standards in their industry. Ideally of course they do both. Some, on the other hand, are exclusively motivated by personal gain. I would no more elect Philip Green to represent my interests than I would Donald Trump. Business running government is simply a disaster waiting to happen and in some cases already taking place.
Government, either in the form of politicians or public servants, is equally unsuited to running business. Serving the customer, innovating products and prices, motivating the workforce, improving productivity, challenging the market – none of these concepts can co-exist with bureaucracy. The history of government run industry is one of enormous waste, inertia in a vacuum of decision making and constant fluctuation with political change. It inevitably leads to a loss of competitive skills and eventually to takeover by foreign corporations.
Nationalisation is not a sustainable answer to fairness in transport or energy marketplaces. Far better models exist of businesses run with social aims and objectives than that of nationalisation. Public monopoly is the antithesis of public benefit. It leads to corruption and stagnation.