COLUMNISTS Politics exerts an overwhelming fascination for many entrepreneurs. Having conquered one walk of life and with little need of money but still plenty of ambition, they see the political arena as a fresh challenge. Sadly, most retire hurt from the fray before the battle is won, battered and baffled by the vicious and unpredictable world of lawmaking.
This is a shame, because parliament and Whitehall would benefit from attracting the best commercial managers. Their experience of building enterprises, creating jobs and wealth, delivering projects on time and handling competition, suppliers and customers would be good for the state. No minister in the current cabinet has run a private sector organisation – and it shows. They lack a genuine understanding of how the majority of the country actually functions: their careers have been spent apart from the real world – in places such as think-tanks, union offices, barristers’ chambers, party HQs and so on. So they are not necessarily qualified to make decisions about the economy and industry – or indeed the NHS or dealing with the unemployed.
The past four years at Channel 4 have provided me with a useful basic education in how our system of democracy works. They have also reinforced my belief that I would never dream of entering politics. It appears to me a thankless task, full of desperate compromise and half-truths. At every turn there is massive institutional stagnancy – in the dominance of the two jaded parties, the cumbersome way laws are made and our old-fashioned elections.
In business, companies adapt to change – be it social, legal, technological – or die. In politics, there is no such imperative. Everyone is wrapped up in process and theory – not practical outcomes.
Entrepreneurial figures such as Archie Norman and Lord Dyson gave up after finding the going uncomfortable. I expect they disliked the intrusive media coverage and the feeble financial rewards while the machinations of party politics probably bored them. Others take roles as advisers or get appointed peers. No doubt they believe they are taking high office and can change things. Unfortunately the electorate wants lower taxes and more public services.
Few entrepreneurs have the stomach to go out and fight for a seat: one of the few I’ve met is Jeremy Hunt, shadow minister for culture. Curiously, he made his money in publishing listings books – just like Lord Heseltine in his early days at Haymarket. I hope Mr Hunt inspires others to seek public office. But I wouldn’t blame anyone really capable for turning down the £61,000 MP’s salary for the higher standard of living achievable elsewhere.
I imagine tycoons enter politics full of grand ideals. Suddenly they confront a world of vested interests and newspaper soundbites, lobbyists and backbenchers worried about losing their seats and prestige. No doubt they fail to spot the lines of true power and are unused to the ways of bureaucrats and political influence. I do not suggest that all career politicians are megalomaniacs and all capitalists are wonderful. The motives of too many rich donors and business people are suspect when it comes to politics. Most want the glory and power – only a minority want to devote themselves seriously to public service.
The parties should embrace only those who have studied or worked in the state sector in some capacity. They will understand the limitations. Most company owners are used to being the absolute boss; Westminster doesn’t operate like that. It requires a more inclusive approach, full of concessions and procrastination. Not quite the description of a classic impresario.
Various commentators say that business has fallen out of love with New Labour. Certainly the government’s ill-advised changes to taper relief and rules on non-doms have alienated many wealth creators. And I suspect many Labour’s supposed supporters were always fair-weather friends, only keen when they appeared to be the winning team. Now they sense that the tide is turning, their allegiances are shifting to the Conservatives. It will be interesting to see if their loyalty survives a hung parliament – if that is what we get.
The writer is chairman of Channel 4 and runs Risk Capital Partners, a private equity firm
