Joanne Black has a good case for the Mixed ownership Model for state assets (on-line here next week):
. . . I need think only of Solid Energy’s plans to build a lignite-to-briquette plant to remind myself why ownership of these companies is better left to people who can afford to risk (that is, possibly lose) their money, than to have such investments funded by taxpayers.
I imagine most of us could think of several hundred things on which the government could more urgently and usefully spend our taxes than on finding out whether converting lignite to briquettes actually works. It might not.
that is not a reason for Solid energy to not pursue the project, but it is quite a good reason why someone other than taxpayers alone should pay for it.
Opponents of the MOM have focussed on the income that will be lost when a minority of shares are sold.
They conveniently overlook the costs, and the risks, that will be reduced when they’re shared by other investors.