The ownership argument begins with a preference for private firms until one government becomes the sole customer of its sole supplier. That arrangement makes the customer's ability to operate dependent on the supplier's finances and management. An ordinary commercial customer in that position would have reasons to buy the supplier, protecting its own business and absorbing the supplier's profit margin. Diversifying procurement is another option, but it requires enough demand to support competing suppliers. Defence procurement complicates that choice because government requirements and what it builds differ from ordinary private business.
Notable Point · 4:26-6:07
Sole-supplier dependence changes the shipyard ownership question
When one government and one shipbuilder depend entirely on each other, supplier failure and profit margins become direct public costs.