chapter  14
The Discipline of the Finance Market
WithC. D. Foster
Pages 13

This chapter shows that Lord Beeching and his colleagues came into a situation which was far more complicated than is usually found in British industry. The amputation Beeching planned was more sophisticated than the rapid thrusts of the takeover expert. The alternative financial discipline within Government would have to be created; sending the Boards to the market might seem an easier alternative. Drastic action is only likely to lead to an efficient result if a Board has the financial discipline and understanding of its own operations to meet it. One hopes that the abolition of the deficit grant will help financial discipline. Moreover, the money market only exerts a minimum discipline. The conclusion so far is that any financial disciplines that can be exerted by the finance market can, and indeed should, be exercised by the Government in relation to nationalized industries.