Gove plans to hold to account the ‘unacceptable face of capitalism’
Speaking in a debate on housing safety in the Commons on 10th January the Minister responsible, Michael Gove, noted the ability of some building developers to bodge jobs, pocket the money and then disappear. He suggested they were the unacceptable face of capitalism and he as working on holding them to account.
It did rather beg the question of what an acceptable face of capitalism might look like..
The reference was to a remark made in May 1973 following a Court case when the then Tory Prime Minister Ted Heath referred in the Commons to the activities of London based southern African mining firm Lonhro as the ‘unpleasant and unacceptable face of capitalism’.
The phrase has entered the historical record as an example of a Conservative Prime Minister drawing a moral limit to how far free market capitalism might go.
What the moral economy of Michael Gove might be is an interesting question
Kate Green
(Stretford and Urmston) (Lab)
I note that the Secretary of State said he would extend the right of leaseholders to challenge those who cause defects retrospectively for 30 years, but he will be aware that unscrupulous developers such as Mr Jason Alexander in my constituency exploit loopholes in company law with the result that there is no corporate entity to go after because it has been wound up, struck off or stripped of assets. Can he say what work he is doing with the Department for Business, Energy and Industrial Strategy to ensure that those loopholes in company law are closed? Can he also tell us whether the obligations that developers will now face as a result of his statement today will take precedence over their other financial obligations?
Michael Gove
The hon. Lady makes two important points. On the first point, yes, this has been a feature. I was not fully aware, until I took on this responsibility, of how some within the development industry play fast and loose with the rules and set up special purpose vehicles, shell companies and so on to evade their responsibilities. They exhibit the unacceptable face of capitalism, I am afraid, and she is right to say that work requires to be done to bring them appropriately to account. I will be working with colleagues across Government to do just that.
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