Nationalisation Without Compensation

03.12.2018 - Craig Murray

Nationalisation Without Compensation
(Image by Pixabay)
“…The City of London is our enemy and will naturally attempt to resist or punish any attack on its continued ability to be the conduit for the hoovering dry of the national wealth…”
When slavery was abolished in the British Empire, taxpayers paid huge sums in compensation to slave owners for the loss of their “property”. No compensation was ever paid to the slaves for the loss of their freedom.The problem with that approach is, of course, that the state did not take into account that the “property” of which it was relieving the landowners was acquired as part of an inhuman and immoral situation.

I was considering the same question in relation to the constitutional moves of South Africa to redistribute land without compensation. It seems to me this is plainly morally justified. The only question marks I can see are of practicality, in terms of making sure those taking over the land are trained to keep it properly in production, and that redistribution is not corrupt. Those are not insuperable problems, and I support the South African government in its endeavours.

But I wish to apply the same principle, of the state acting to right historic injustice on behalf of the people, much more widely and in the UK.

I apply precisely the same argument to the great landed estates, particularly but not only in Scotland. I believe the fundamental answer to land reform is confiscation by the state of large estates, and that social justice can never be redressed by the taxpayer simply handing over money to the ultra-wealthy. We have already been doing far too much of that through the bankers’ bailouts.

I have no moral qualms at all about simply taking back the land, whether it be from the Dukes of Sutherland, Buccleuch and Atholl, from a Dutch businessman or from a sheikh. In England the Grosvenor estate, the lands of the Duchy of Cornwall, and similar holdings could be confiscated. I do not see this as harm to the “owners”. Let them work for a living, or try their luck with the benefits claim system. Residential properties in large estates might become council homes, while tenants of commercial properties might pay rents to the council rather than to the Duke of Westminster, and the council use a large portion of that money for homebuilding.

Agricultural land from vast estates might perhaps best be given to the tenant farmers who have rented it. In the Highland glens, there are vast tracts which were once cattle rearing and arable. We have been lied to for generations that these are only fit for moorland for grouse and deer hunting – despite the fact that they are studded with the croft foundations of the cleared populations they once supported, who reared cattle and grew crops. These unfarmed lands should be given free to communities to develop; with assistance for the expensive task of bringing them back into production. That assistance would be a better use of state money than paying “compensation” to the ultra-wealthy.

But it is not only land. I favour nationalisation without compensation of all PFI projects, and of all railways and utilities. The owners have milked the public and the taxpayer far too long. Any business investment carries risk, including political risk. If you misjudge the political risk, your business fails. These businesses have made a misjudgement of political risk in the view they could profiteer, that it is possible to rip off the people forever without blowback. That is a business miscalculation, and such businesses deserve to fail.

The Labour Party’s renationalisation proposals have been carefully calculated within the existing framework of “legitimate” property rights. Therefore John McDonnell has framed rail nationalisation in terms of the expiration of franchises, and talked of PFI projects in terms of buyouts. I reject this approach in favour of the more radical approach of confiscation.

Yes, I realise that some percentage of the investments removed will belong to pension funds and insurance companies and even foreign states, and to small investors. Still more will belong to hedge funds and plutocrats, and the stake of ordinary people in wealth through pension funds had been – deliberately – tumbling for two decades. The less wealthy individuals with a stake in pension funds will lose a little, but gain from the wider public good, and for them there might be a compensation mechanism.

I also realise the markets will not like confiscation, and there will be an increase in bond yields; but this will pass. There is no measure to redress social injustice the markets will like. The City of London is our enemy and will naturally attempt to resist or punish any attack on its continued ability to be the conduit for the hoovering dry of the national wealth.

The fact is, that the extreme injustice and inequalities of society have now become so very glaring that there is no way to make any impression on wealth disparity without changes that may be rightly considered revolutionary. Either we are content to live in a society where the wealthiest one per cent will within two decades own ninety per cent of all wealth in the UK and the rest of us be helots, or we make changes to the fabric of the economy and government which are truly radical.

The economic system has tilted beyond correction by tinkering.

What is immorally owned ought not to be compensated on expropriation by the community.

As with the owners of slaves, the owners of “property” would be likely to attempt to defend their riches through the courts. This is where the doctrine of the sovereignty of parliament might for once be put to good rather than evil use, in passing law making such state confiscation unequivocally legal. Both the UK and Scotland appear set for at least a period outside the EU; I cannot think of a better use for any window of legal autonomy.

I am fully aware that I am proposing very radical measures very unlikely to be adopted by the current political Establishment. But the most telling fact of recent western society, itself a natural and predictable result of that galloping wealth inequality, is that the political Establishment has its coat on a very shoogly peg.

 

The original article may be found here

 

Categories: Culture and Media, Economics, Europe, Human Rights, Opinions
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