Gas gathering or penny-pinching?

On 11 September 1981 the British Government finally announced the abandonment of its proposed North Sea gas-gathering pipeline scheme, thus ending one of the most complicated and controversial investment projects considered in the UK in recent years. The story of the pipeline is a fascinating one, offering insights into the present government's economic strategy generally and into its relationships with private enterprise specifically. In these circumstances, one must ask why the government became involved in the first place. This brief economic perspective will attempt to do so.