The ASI published a paper that recommended the wholesale privatization of local government services, starting with bin collection. Thatcher liked it so much that she had it photocopied 10,000 times and sent a copy to every Conservative councillor in Britain.
Thatcher didn’t like the word ‘privatization’, because it sounded new and strange. She wanted to call it denationalisation. But we pointed out that we were going to apply it to industries that had never been nationalised in the first place. We still insisted on spelling it with a ‘z’ to make it look like something new.
The first to go was Cable and Wireless, then BP, but the first big public flotation was of the Post Office telephone service, a state monopoly. Rather than sell it to a private company, the government decided to sell it to everyone, with a flotation in which the public were invited to apply for shares. To keep the telephone workers on side, they were offered 200 free shares if they bought 200. The union ran a hostile campaign showing a telephone cable being cut with scissors, but 96% of the workforce took the money instead.
– Madsen Pirie, recalling how Margaret Thatcher turned things around.
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