The power of his arguments lies in the fact that they come from a businessman

The power of his arguments lies in the fact that they come from a businessman.One of the first things Bischof did on taking over Lancer Boss was to declare that the Leighton Buzzard plant would 'opt in' to the Social Chapter. This was his way of sticking two fingers up both at the Government and at much of British business which, he says, is driven by its own narrow interests.He says Germany's higher costs are a result of its success, not a cause of future failure, because they have come from a stronger currency, not higher inflation. 'If it was just a question of social costs, there shouldn't be anyone working in Germany,' he says.He is scathing about short- termism and regularly crosses swords with clever young men from the City. 'I've never found one who could out-argue me, because they are not conversant with other systems,' he says To him, the facts are obvious. 'If you have to have a payback of 18 months, you will not invest as much as someone who has a three- to five- year pay back.'Behind his ideas lie two main themes. One is that the British operate on a basis of competing interest groups, which is destructive. The other is that this mentality, and the other faults in British industry, can be mended only by a wholesale revamp of the system.Germany is a country of consensus.

'It is the job of managers to serve both workers and shareholders equally,' Bischof says. 'A good company has to be at ease with both.'He praises British companies such as Marks & Spencer and J Sainsbury, which try to steer a line between these interests. 'The question is, can you leave it to the intellect of far-sighted managers?' The answer is no. The Government should lay down the principles, 'and they should start with a clear statement that industry is not just for increasing shareholder value.'The problem is that some companies do too well out of the current system to countenance change. 'There are deep-seated cultural interests that do not want the British system to change,' he says. 'Companies like Hanson thrive on casino capitalism.'He favours dividend controls and laws discouraging takeovers. But he says the best way of reducing reliance on the casino is to offer an alternative.

He suggests that a German-style state investment bank, which offers 20-year fixed finance at 6.5 to 7.5 per cent, would deter managers from floating on the stock market and would thus allow private companies to grow. 'Why would companies lose control to outside shareholders when they can get the funds they need at those rates?' he asks.But once you start changing, you have to keep on - or rather you have to change everything at the same time. 'Just setting a minimum wage or putting in the Social Chapter is useless unless other things are done at the same time,' he says And here he admits it becomes tricky. 'It was very easy for Germany or Japan, because they had a watershed after the war,' he says. 'But changing in bits, as Britain would have to, would be dangerous and difficult.'Bischof believes the union restrictions introduced during the Thatcher years were positive but, he warns, 'there is no longer an equilibrium of pressure' Capital should be regulated to bring back the balance. 'One can definitely see progress on labour relations and manufacturing quality, but I still feel the fundamentals have not been addressed,' he says. 'While Germany has understood it is over-regulated, Britain is under-regulated and is moving in the wrong direction.