{"id":135402,"date":"2019-11-16T09:23:19","date_gmt":"2019-11-16T09:23:19","guid":{"rendered":"https:\/\/www.dailymail.co.uk\/news\/article-7692355\/Crackpot-Corbyns-communist-plan-nationalise-broadband.html?ns_mchannel=rss&ito=1490&ns_campaign=1490"},"modified":"2019-11-16T09:23:19","modified_gmt":"2019-11-16T09:23:19","slug":"crackpot-corbyns-communist-plan-to-nationalise-broadband","status":"publish","type":"post","link":"http:\/\/wardoon.net\/so\/crackpot-corbyns-communist-plan-to-nationalise-broadband\/","title":{"rendered":"‘Crackpot’ Corbyn’s ‘communist’ plan to nationalise broadband"},"content":{"rendered":"

Jeremy Corbyn<\/a>\u2019s \u2018crazed communist\u2019 plan for free broadband risks the pension pots of millions of people in retirement, experts said last night.<\/p>\n

The Labour leader unveiled radical proposals to nationalise the part of BT that provides broadband \u2013 and to fund the free service by imposing huge taxes on online giants.<\/p>\n

But the pledge was savaged by BT, which said it would cost five times more than Labour\u2019s \u00a320billion estimate. Boris Johnson<\/a> described the plans as \u2018crackpot\u2019 and derided it as a \u2018crazed communist scheme\u2019. After the Labour announcement, \u00a3715million was wiped off the value of BT at one stage.<\/p>\n

\n
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\"The<\/div>\n

\"The<\/p>\n

<\/noscript><\/div>\n

The Labour leader unveiled radical proposals to nationalise the part of BT that provides broadband \u2013 and to fund the free service by imposing huge taxes on online giants<\/p>\n<\/div>\n

Last night former pensions minister Baroness Altmann warned that millions of people face a poorer retirement because so many pension funds invest in BT.<\/p>\n

She said: \u2018If Labour decide to confiscate the parts of the company that have the best growth prospects, then the share price will be hit \u2013 meaning people\u2019s pensions will lose money and they will be poorer in retirement because part of their investment for the future has been taken away.<\/p>\n

\u2018A Labour government is likely to lead to significant falls in the share price of a number of leading companies.\u2019 Labour\u2019s plan includes nationalising parts of BT \u2013 namely its digital network arm Openreach \u2013 to create a UK-wide network owned by the government called British Broadband.<\/p>\n

Shadow Chancellor John McDonnell said the broadband rollout would begin with communities that have the worst access, followed by towns and smaller centres, and then by areas that are currently well served.<\/p>\n

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\"He<\/div>\n

\"He<\/p>\n

<\/noscript><\/div>\n

He yesterday met with students at Lancaster University to talk about the party’s plans to deliver fast and free full fibre broadband across the country if they win the General Election<\/p>\n<\/div>\n

And he even suggested that smaller broadband providers \u2013 Virgin, Sky and Talk Talk \u2013 could be nationalised. Yesterday Talk Talk put the sale of its full-fibre broadband business on hold.<\/p>\n

Launching the policy at Lancaster University yesterday, Mr Corbyn vowed to provide free internet coverage to the public \u2018who have already forked out far too much for rip-off broadband\u2019. He said Labour would fund this by forcing internet giants such as Google and Facebook to pay more tax.<\/p>\n

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HOW THE ANALYSTS SAVAGED HIS PLAN <\/h3>\n
\n

\u2018People\u2019s pensions will lose money and they will be poorer in retirement because part of their investment for the future has been taken away\u2019<\/span> – Former pensions minister Baroness Altmann<\/span><\/p>\n

\u2018It needs funding, it is very big numbers. You are not short of [it costing] \u00a3100billion\u2019<\/span> – <\/span>BT chief executive Philip Jansen<\/span><\/p>\n

\u2018To bring internet provision into the state\u2019s remit would ensure all of the delays, waiting times and quality decline that go hand-in-hand with bureaucracy\u2019 –<\/span> <\/span>Mark Littlewood, director general of the Institute of Economic Affairs<\/span><\/p>\n

\u2018All renationalisation will achieve is to slow down a process that needs speeding up\u2019 – <\/span><\/span>Matthew Fell, policy director, Confederation of British Industry<\/span><\/p>\n

\u2018Labour\u2019s plan will be turning back the clock to a time when Britons had to wait months for a phone line connection from the Post Office\u2019<\/span> – <\/span>Matthew Lesh, of the Adam Smith Institute<\/span><\/p>\n<\/div>\n<\/div>\n

Mr Corbyn added: \u2018The corporations have been unable or unwilling to roll out full-fibre fast enough, and they have little incentive to invest in rural and remote parts of Britain.<\/p>\n

‘But under our plan, the priority will be those with least connectivity, mainly in rural and remote areas but also in some inner-city areas, unlocking new opportunities across huge swathes of our country.\u2019<\/p>\n

Mr McDonnell said: \u2018British Broadband will not represent a return to the 1970s in how it operates. They didn\u2019t have broadband in the 1970s, this is public ownership for the future.\u2019<\/p>\n

Chancellor Sajid Javid described the plans as \u2018fantasy broadband\u2019 and \u2018primary school politics\u2019. BT chief executive Philip Jansen told the BBC that Labour\u2019s plans were \u2018very, very ambitious\u2019 and challenged the party\u2019s figures.<\/p>\n

\u2018It needs funding, it is very big numbers, so we are talking \u00a330 billion to \u00a340 billion, and if you are giving it away over an eight-year timeframe it is a another \u00a330 billion or \u00a340 billion. You are not short of \u00a3100 billion.\u2019<\/p>\n

Mark Littlewood, director general of the Institute of Economic Affairs, said: \u2018The expansion of cheap internet services is one of the great free market success stories of recent years.<\/p>\n

\u2018To bring internet provision into the state\u2019s remit would ensure all of the delays, waiting times and quality decline that go hand-in-hand with bureaucracy.\u2019<\/p>\n

Neil Wilson, chief market analyst at Markets.com, said: \u2018BT can now be added to the list of \u201cLabour Danger\u201d stocks which includes utilities and Royal Mail.<\/p>\n

\u2018Of course, all UK stocks are in the firing line, because of plans to hand shares to workers.\u2019 A telecoms industry source suggested Labour\u2019s plan could also threaten jobs at BT\u2019s rivals.<\/p>\n

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\"Shadow<\/div>\n

\"Shadow<\/p>\n

<\/noscript><\/div>\n

Shadow Chancellor John McDonnell said the broadband rollout would begin with communities that have the worst access, followed by towns and smaller centres<\/p>\n<\/div>\n

\u2018There are thousands of people working in the cables industry who aren\u2019t engineers,\u2019 the source said.<\/p>\n

The Internet Services Providers\u2019 Association said Labour had \u2018wildly underestimated\u2019 the cost of its plans. Chairman Andrew Glover added: \u2018This proposal would also undermine the huge private investment and existing work already in motion to deliver nationwide access to gigabit broadband.\u2019<\/p>\n

Liberal Democrat home affairs spokesman Christine Jardine said: \u2018Given Corbyn\u2019s admiration for authoritarian regimes like Iran and Cuba that routinely spy on their citizens online, there are legitimate concerns about handing over control of our broadband services to a Labour government. This could lead to a snoopers\u2019 charter through the back door. People will be rightly worried about letting Corbyn\u2019s Labour into their living rooms.\u2019<\/p>\n

\n

QUESTION AND ANSWER <\/h3>\n
\n

What is Labour up to?<\/span><\/p>\n

Labour says it will nationalise Openreach, the part of BT that runs most of Britain\u2019s broadband network, and provide all homes and businesses with free internet.<\/p>\n

The party says it will borrow \u00a315billion, on top of \u00a35billion already committed by the Government, and use it to subsidise the rollout of fibre-optic cables nationwide by 2030.Labour proposes to compensate BT shareholders by paying them with government bonds \u2013 effectively IOUs that pay interest. <\/p>\n

Openreach has expanded its fibre rollout in the past two years, but critics have long accused it of moving too slowly.<\/p>\n

How much?<\/span><\/p>\n

Labour says it will cost an extra \u00a315 billion, which it plans to borrow. But it may end up having to pay the same amount again for Openreach, with the party saying Parliament would decide the final amount paid to BT shareholders.<\/p>\n

Any investors who feel they could be left out of pocket might decide to take a Labour government to court. Philip Jansen, BT\u2019s boss, said the plan could easily end up costing \u00a3100 billion in total.<\/p>\n

Labour also claims broadband maintenance would cost only \u00a3230million a year. But City analysts put the real cost at up to \u00a3900million.<\/p>\n

Shareholders hit?<\/span><\/p>\n

BT has more than 800,000 retail investors \u2013 many of whom would have snapped up shares following BT\u2019s privatisation by Margaret Thatcher\u2019s government. If Labour does not pay the full market value of Openreach, shareholders with a stake in the company could be left out of pocket.<\/p>\n

Any falls in BT\u2019s share price will hurt them as well \u2013 as much as \u00a3715million was wiped off the firm\u2019s value at one point yesterday. BT\u2019s share price is now below \u00a32 \u2013 compared to a peak of more than \u00a35 in 2015.<\/p>\n

And pension funds?<\/span><\/p>\n

BT is a FTSE 100 company, meaning most big pension funds have cash invested in it on behalf of millions of workers and pensioners. A huge number of so-called tracker funds that follow the FTSE will also hold shares. All of these investment funds \u2013 and the retirement plans they help support \u2013 could lose out if BT\u2019s shares fall or if Labour does not pay a fair price.<\/p>\n

City analysts have also warned that BT may no longer be able to afford its \u00a31.5billion annual dividend to shareholders if Openreach is nationalised. BT\u2019s own pension pot would also be affected. The \u00a358billion retirement scheme currently has a \u00a36billion deficit, which the company has agreed to pay down by 2030. This means a Labour government could face a compensation claim if its nationalisation plan threatens efforts to eliminate the deficit.<\/p>\n

Similar schemes?<\/span><\/p>\n

Yes. In 2009, Australia\u2019s National Broadband Network aimed to give 93 per cent of the population so-called \u2018gigabit\u2019 connections \u2013 a similar speed to what Labour wants to deliver. But the vast project has suffered from a litany of complaints. It was originally forecast to cost \u00a329billion, but that has ballooned to \u00a340billion.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Jeremy Corbyn\u2019s \u2018crazed communist\u2019 plan for free broadband risks the pension pots of millions of people in retirement, experts said last night. The Labour leader unveiled radical proposals to nationalise the part of BT that provides broadband \u2013 and to fund the free service by imposing huge taxes on online giants. But the pledge was […]<\/p>\n","protected":false},"author":1,"featured_media":135403,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10221280388112155_325455220908133":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[23],"tags":[],"class_list":["post-135402","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english-news"],"yoast_head":"\n'Crackpot' Corbyn's 'communist' plan to nationalise broadband - Wardoon<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wardoon.net\/so\/crackpot-corbyns-communist-plan-to-nationalise-broadband\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"'Crackpot' Corbyn's 'communist' plan to nationalise broadband - Wardoon\" \/>\n<meta property=\"og:description\" content=\"Jeremy Corbyn\u2019s \u2018crazed communist\u2019 plan for free broadband risks the pension pots of millions of people in retirement, experts said last night. 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