I write in reply to Mr E Goodyear's letters. It is he who should get his facts right.

It is not as easy as he suggests to fix the price at which shares in industries should be offered to the public on privatisation. It is necessary to pitch the price at a level where all the shares will be sold, yet the best price will be realised. This was made harder by the threats of the Labour party to re-nationalise some of the industries concerned. On the whole the Tory government did as well as could be expected. According to Mr Goodyear's arguments the government ought to compensate the buyers of British Petroleum shares for the fact that they had to pay over the odds for them because of the stock market fall at the time of privatisation.

The efficiency tax has ultimately to be paid out of profits so, it does indeed, limit the ability of companies to reduce prices and increase wages and dividends. The substantial price reductions in gas, electricity and telephone prices are a direct result of economies that would never have been made while the industries were in government ownership.

The troubles of the manufacturing industries in the last 20 years were caused mainly by overseas competition and the greed of employees and management and were, on the whole, alleviated by Tory actions. Why should the government bail out failing industries? Why should the Tories want to "dismantle the manufacturing base of this country"? Greater efficiency is the only method by which we can pay our way. Mr Goodyear really ought to leave these things to people who understand them.

S R Morgan

Normanby Street, Bolton

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