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.

Mandelson harks back to the macro management days

Peter Mandelson's interview in this morning's FT throws up the fact that the business secretary is impressed with the French industrial policy.

Talking to Peggy Hollinger after meeting business leaders in Paris he says that

“We have something to learn from continental practice without falling into the pitfalls of second-guessing business,”

adding that France

was better at “setting strategic goals and objectives”, as it had done in the energy sector by promoting nuclear power, in transport by creating the infrastructure for high-speed trains and in the aerospace industry.

This is bound to open up the debate that Mandelson will try to revert to a policy of greater state intervention in the economy,maybe even along the lines of macro management.