You end up with a fair dose, therefore, of the policies Labour had first thought of, but without many of the drawbacks associated with old Labour.Stakeholder capitalism looked as though it could unite the party. It is a best seller and popular among Labour supporters because it offers a modern set of prescriptions (completely rejecting the perceived failures of the past) while apparently serving traditional Labour causes. The book that makes this case most powerfully is Will Hutton’s The State We’re In. The market mechanisms of corporate discipline such as takeovers are restrained; the administrative mechanisms of corporate discipline such as supervisory boards are encouraged.

In general, German companies are more often likely to have one or two big shareholders – be they banks or other companies – taking a more active interest in what is going on than shareholders here, who have typically rather small stakes.The view that “our car has broken down and we need new parts from Germany” is a natural one for Labour to adopt. It is based around a set of business institutions less geared towards the interests of shareholders, and more geared towards the interests of other groups.Shareholders enjoy a somewhat lower profile in Germany than in Anglo- Saxon economies; equity finance is relatively less important and bank finance is relatively more important Shareholders have fewer rights, employees have more rights. That Labour is a political party dedicated to modern capitalism was not in doubt well before this speech. That Labour, in principle at the very least, was a party committed to the principles of fiscal conservatism and responsible spending was also well rehearsed. But what was less clear was what kind of modern capitalist party it would attempt to be.
A very seductive model for Labour – or any party looking to be distinct but also modern – has been one which could be labelled “stakeholder capitalism” It is the capitalism of Germany. Those who read the entire script of Tony Blair’s Mais lecture last week and who were not familiar with the thinking of certain important Labour Party advisers will have been surprised Something really has changed.

The development of the Labour Party’s economic strategy is a process of real significance. It is even possible that the two second-place identical bidders, Virgin TV and Channel 5 Broadcasting, may be asked to rebid should UKTV be disqualified.In any event, retuning plans, perhaps the most important element of all, will be carefully scrutinised by the ITC.. The decision could come earlier, depending on issues such as problems with programme quality or the financial aspects of the business plan. Channel 5 Broadcasting would make the chief executive directly responsible to the board for the retuning process.The ITC is now engaged in a review of the four bids, and promises a final selection by November.