The Governor of the Bank of England is concerned about banks which have become "too big to fail" and has raised this on a number of occasions. Today's Financial Times has a commentary piece from Maurice Saatchi, someone who is close and influential in the free-market end of the Conservative Party on the way cartels have found their way around the work of regulators. While today sees the launch of ResPublica an interesting new think tank launched by Philip Blond and someone who is supposedly close to David Cameron. He argues that the degree of monopolisation in many key markets in the UK damages society and urges further development of the John Lewis model - where it is owned by a charitable trust with the workforce sharing in ownership of the company. David Cameron is attending the launch.
Thursday, 26 November 2009
Big companies watch out - a developing agenda against market domination?
There seems to be a developing agenda in the UK about addressing the fact that we have allowed large swathes of the economy to be dominated by one or two key players - finance, food retailing, energy, media just for starters. Might this become a developing agenda in the next Tory government which seems more focused on the issue than Labour?
Of course large organisations are notoriously hard to dislodge and will no doubt be highlighting their role in society but it will be an interesting agenda to watch over the coming years. It does highlight how weak the role of the Competition Commission has been in this country. Why does it not set a target that no company can own more than 15% of a key market? Tesco has a 30.7% share of the UK food grocery market.
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