Wednesday 14 January 2009

Government to gamble on high tech industry

Paul Waugh has picked up something that cam across during PMQ's this morning.

With everybody's attention concentrating on the business loan scheme and the VAT arguments he points out that Gordon Brown said:

"We will buy shares in hi-tech companies that have a viable future so that they can transfer debt into equity."


What will this mean? says Paul and his conclusion is rather worrying.

The big problem facing this new attempt to buy shares in hi-tech firms is this: what if the state just gets it wrong and backs the wrong horses? The days of choosing industrial champions are supposed to have ended a long time ago. Will the taxpayer be impressed that their cash is being gambled on individual firms?

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