With the government last week missing a wonderful opportunity to improve business practice by failing to add any sensible conditions to the loan packages for struggling companies, it is imperative now that all industry bailouts come with strict rules about future behaviour (No 10 told time is running out for airline industry, 23/03/20). Whether government assistance takes the form of grants, loans or part-nationalisation, it should be done with strict stipulations about company policies on pay and bonuses, tax, and green targets on reducing carbon emissions. How ludicrous would it be for taxpayers to bail out airline companies which use tax avoidance schemes, insist on ridiculous dividend payments whilst simultaneously claiming the proximity of bankruptcy, and have unreasonable pay ratios?
The bigger the bail-out, the greater the stake in the company government should take. It`s an opportunity to end both the short-termism which has contributed so much to the lack of investment and poor productivity in the business sector, and the tax avoidance practised by so many companies which has denied the Treasury of billions. It is also a chance for the government to put its money where its mouth is, and start imposing green targets on all British businesses!
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