Covid-19: Businesses and the Private Sector

Lord Desai Excerpts

Thursday 21st May 2020 Lords Chamber

[Lord Desai (Lab)]

My Lords, there is a public sector and a private sector, but there is also a social sector. We must not forget that the social sector is also part of private society. I have been very impressed by how many neighbourhood associations have sprung up to make lockdown tolerable for a lot of people. They have delivered things to neighbours, supplying food and any help. We ought to acknowledge our gratitude to our extensive network of voluntary neighbourhood associations which work towards general welfare and which have sustained us in the lockdown.

I also want to point out the role of charities, which have existed for a long time and risen to the occasion quite splendidly to fill the gap which the state has left in its provision for Covid patients. In particular, the newspapers have stepped in and organised special charities and fundraising for supplies and equipment. [Inaudible.] We ought to appreciate all that voluntary work.

I have a suggestion. Someone proposed earlier in the debate that the loans the Government have given to a lot of companies should be returned not in the form of money but in equity in those companies. That is a very fine suggestion. The Chancellor and Government should take advantage of it and set up a sovereign wealth fund from the equities returned by companies. Indeed, they should say that all loans should be returned in the form of equity and create a sovereign wealth fund.