Dangerous economic nationalism from the Labour Party

The Labour Party is venturing a dangerous path of economic nationalism with its proposals for a ‘Cadbury’s law’. Labour is proposing to give Ministers the power to block any takeover of British firms if it is not in the ‘national interest’. Not only does it contradict the principles of free trade and encouraging global markets but Labour’s plans give worryingly large amounts of power to ministers to interfere in the free market.

Under Tony Blair Labour abandoned this old socialist rhetoric and embraced free trade and free markets. This latest announcement gives us all the proof we needed (if we needed any more) that the days of ‘New Labour’ are over. Labour are now on the road back to the politics of the 1980s, in hock to the trade unions, and following a path that will ruin Britain’s credibility in the world economy.

What does it matter if Cadbury’s, Jaguar and Corus Steel are owned by foreign companies? It has no impact on the consumer here in Britain. I am quite sure Kraft doesn’t have some plan to alter the recipe for Dairy Milk or take Crunchies off our shelves. These companies will stay be paying tax on their earnings in Britain and countless overseas companies are owned by Britons. The sheer stupidity of this policy is evidence that it was the unions’ contribution to the Labour manifesto.

In the aftermath of the recession we have a great opportunity to promote free trade and open markets across the world; this is good for the British economy and good for the British people. Free trade will also be the best route to promoting the interests of developing countries when developed nations’ remove barriers to free trade such as the Common Agricultural Policy. Retreating to protectionism and a dangerous economic nationalism benefits nobody and damages Britain’s reputation as a place where people want to come and do business. Labour should shelve this plan immediately.