Last week it was reported that Hilton hotels were selling their buildings and land to a Scottish banking group and leasing them back.
This slightly surprising idea is similar to the thinking behind the controversial private finance initiative in the NHS (though that involves a separate capitalist company being responsible for the costs of building the hospital and risks of delay and error in estimates). What they have in common is that building and land would be held by a finance capitalist company, while the service enterprise would be separate. The comment last week was that the arrangment with Hilton Hotels made sense provided rents were flexible. The detail of the contract would be important here. What interests me however is that this may be a step towards the greater socialisation of land. If economic activity in an area rises and the productive company can afford higher rent, some of that profit will go to the finance capitalist company. If economic activitiy falls there is an implication that rents would fall. Finance capitalism may be an more efficient mechanism for equilibrating ground rent over an economy geographically and over time. With political will it could become a mechanism for the socialisation of land while allowing the market in material and service commodities to continue. That would only be possible with increased social planning by governmental authorities and monitoring of the aims of the finance capitalist companies. Plus a little political will of course to socialise the means of production, at least as far as rational land managment is concerned. It might also be countercyclical. Sorry if this is too speculative but it might ring a bell with some people. Chris Burford London
