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    Bern correct, Ross - there is no middle way.

    It is in the nation's interests not to go down the subsidy route. As I said it is a debilitating drug and we must not go there. It offers no long term solutions at all. Far better than subsidies and more long lasting would be to improve the environment for business overall - that would create far more long lasting jobs and more job security than subsidies, whether by 'fixing the market' so a UK firm (illegally) can be favoured or with straight dosh payments.

    OK - so forget cash subsidies, look at market fixing and what it has achieved in the past. Heseltine making sure Westland got a helicopter contract, we ended up paying three to four times what we should have for helicopters that were delivered 5 years late and they were inferior to the alternative. There have been many such examples in the past, particularly in Defence and it has been deeply damaging.

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