Morning Call: pick of the papers

The ten must-read comment pieces from this morning's papers.

1. Clegg might be a pantomime act, but Cameron gave him the role (Daily Telegraph)

The Prime Minister is reaping the fallout from his generosity to Lib Dems after the election, says Iain Martin.

2. Stakes are unbearably high for Salmond and Cameron (Independent)

Were Scotland's First Minister to win the referendum on independence, it would be a devastating blow to the PM's authority, says Steve Richards.

3. Yes, but can we really imagine what it’s like? (Times) (£)

Being disabled is not heroic, as images from the Paralympics suggest, writes David Aaronovitch. We need empathy with the ordinary grind.

4. Republicans can end 15 years of US stupidity (Financial Times)

For the first time a VP selection has changed the campaign, writes Conrad Black.

5. Marikana is a turning point (Guardian)

The brutal exposure of South Africa's inequality may at last shock the governing elite out of its complacency, says William Gumede.

6. Lift-off from Heathrow is a flight of fancy (Daily Telegraph)

Tim Yeo's outburst has strengthened Justine Greening's position, says Sue Cameron.

7. Don’t make wealth tax a habit (Financial Times)

The Treasury can only pull off limited tricks of this kind, writes Howard Davies.

8. Lib Dems are ruthless – and the figures show Nick Clegg is a loser (Guardian)

With Vince Cable having said he is available, it seems the only question is when, not if, the party decides to oust its leader, writes Martin Kettle.

9. Clegg's risible display of student politics (Daily Mail)

The Deputy PM is hoping that a pathetic appeal to the politics of envy will please his activists and put distance between himself and the Tories, says a Daily Mail editorial.

10. It's not rhetoric to draw parallels with Nazism (Independent)

Actual fascists in actual black shirts are waving swastikas and murdering ethnic minorities in Athens, writes Laurie Penny.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.