Labour shadow chancellor John McDonnell is supporting wider ownership of industry
Third Way has long supported wider ownership of industry and services through co-operatives and trusts. We are also strong supporters of small and family businesses. We therefore wwelcome the statement this week from Labour shadow chancellor John McDonnell that workers should have the right to buy out their bosses.
Mr McDonnell said there was a strong case for a “right to own” in which employees could request co-operative ownership at any point and be given the first opportunity to buy if a company goes under.
In his speech in Manchester he said Labour had to move on from its traditional belief that state ownership was always the answer.
“Whatever the achievements of the past, we cannot simply turn the clock back – whether to 1997, 1964, or 1945,” he said.
He said Labour would go further than proposals for greater state support for employee ownership made in a report to the previous Con-Dem government.
Tax lawyer Graeme Nuttall’s review led to sales of controlling interests to employee ownership trusts being exempted from capital gains tax.
“We should look to extend this approach, offering employees first rights on buying out a company or plant that is being dissolved, sold or floated on the stock exchange,” Mr McDonnell said.
“Italy’s Marcora Law, providing matched funding for those seeking to establish co-ops, is a model worth considering.”
Patrick Harrington, Director of the Third Way think-tank, commented:
“There is a growing political trend in support of wider ownership of industry and measures that support that. State ownership of key industries also remains an important part of the mix. We have long advocated railway renationalisation, for example. Labour this week has upped the ante and widened the debate which is encouraging and welcome. Under their new leadership Labour are bringing into the mainstream debate issues that need serious consideration.”
An excellent step in the right direction for British Labour. Ownership of the ‘means of production’ is an important issue – woefully neglected by the mainstream parties of the Left in most Western nations for decades in favour of personal identity politics and minority grievance issues.
In tandem with support for mutualisation, it will be necessary for the broader public to become aware of the social and economic disadvantages of the share market. The media has a tendency to lionise shareholders – but the reality is that most (I stress most, not all) share holding is a kind of parasitism.
Marjorie Kelly’s book, ‘The Divine Right of Capital’ explains why with a clarity missing from most of the dewy-eyed reportage of the stock market and shareholders.
Third Way should be congratulated for keeping the fires of mutualism burning.
Posted by David | February 8, 2018, 8:47 pmin favour of personal identity politics and minority grievance issues.”
I’m always perplexed by this. Are you refering to formally oppressed inoroties simply having equal rights under the law as everyone else? Because that’s all I can see it being about.
If a large part of your life had been made a misery by structural racism or casual and explicit homophobia you might think of it more as rectifying an imbalance than “personal identity politics and minority grievance issues”. Do you really find challenging bigotry so hard to come to terms with?
The vast majority of these pesky minorities are working-class. Many live in rented accomodation and struggle to make ends meet. There isn’t some trade off.
Posted by piemon1972 | May 28, 2021, 3:21 am