A shift for New Labour?

The front page of the Independent this morning heralds the end of New Labour's dalliane with twelve years of market forces as it interviews the business secretary.

The paper says that Lord Mandelson

unveils an interventionist strategy under which the Government will subsidise the growth industries of the future.

According to the paper,Lord Mandelson said that

"If markets fail or don't work efficiently, government has a role to play – as we saw in the financial markets.The Government's job is not to substitute for markets or displace the private sector. We are not into bailing out the past, but removing the barriers to investing in the future."

But is this the right step to take? I am sure that many on the left of the party will herald this interview as laying the foundations of rolling back Blairism.

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?