Free Markets

It is disturbing that Cameron is quite prepared to interfere in private contracts and also in market pricing. I'm referring here of course to his wish to interfere in (a) contracts between companies and their senior executives and (b) the setting of prices of certain alcoholic drinks. Such interference is certainly out of line for someone who believes in free markets. It is also disturbing that the government has gone along with the EU carbon cap and trade mechanism which Civitas (see the article in The Commentator on the Civitas report here) has amply demonstrated distorts the market by increasing energy prices apart from being more costly than a carbon tax, assuming one is needed at all. Cameron has every right though to give shareholders the power to veto salary and bonuses for senior staff in companies they own. The pendulum has swung far to far against company owners in the split of profits between themselves and the executives who in effect work for them. It is also clearly wrong for senior executives to receive salaries and bonuses which do not reflect success and the government as the owner of 80% of RBS on behalf of taxpayers surely has every right to vote against the huge bonus to be paid to that company's chief executive. The government is also quite right to prohibit the cosy arrangements between two companies where executive directors of one become non-executive directors and members of the remuneration committee of the other and set the salary and bonus of the executive directors of the other company.