The UK’s Green Investment Bank is to be privatised. That has provoked predictable criticism about the sale of public assets and the risk of asset stripping. The result has been a long delay — the idea of a sale was first floated as early as 2011. The process has crawled forward with the government pushed into setting criteria to “protect” the bank and requiring solemn and binding commitments from any buyers, probably backed by the retention of a golden share. Indecision surrounds the question of whether the GIB, which invests in renewable energy projects, will be sold to a single buyer or floated.
All this has distracted attention from the real issues at stake. Far from needing protection the bank needs the freedom and funding to build on what it has achieved. The key subject missing from the debate has been the question of what it could and should do once in the private sector. Read more