Natural monopolies will be brought under government ownership and operated on commercial principles aligned with the service ethic. It is vital that all nationalised enterprises embody an ethos of duty to the nation and service to the citizen. We must learn the lessons of the 1970s, and ensure that these do not become insulated and uncompetitive entities managed more in the interests of management and employees than the British people.
POLICY PLEDGES:
- An audit of key operational and strategic metrics against British and international comparators will be conducted every three years by an independent review body.
- A business plan will be prepared annually by management and agreed by the relevant government department and Treasury officials.
- At least three quarters of the board members of a national enterprise will have significant experience in the industry concerned. No board member may serve for more than 7 years, have any financial interest in a commercial enterprise connected with the national enterprise, or be a former minister.
- All executive appointments will be made by a committee of the Board and a Secretary of State for the area concerned.
- The Chief Executive of the national enterprise will be paid at global market rates with at least 50% of remuneration being contingent upon performance targets including customer satisfaction, project delivery and cost/efficiency benchmarks.
- National enterprises will fund their own capital investment from operating cash flow or via loans from the Treasury at the government borrowing rate + 1%.
- Employment terms and conditions (including pay, pensions, and employment security) in nationalised industries will be benchmarked to comparable roles in the private sector. This benchmark will be reviewed regularly by an ombudsman, and all employees will be appraised annually against high standards of customer service. Non-performing employees will be dismissed.