With the dropping of the planned forest sell off after a short public campaign the government is now seen as week for listening and dropping their policy.
It is a fine line between not listening (as with Thatcher and the disastrous community charge) and being seen as making poor policy that does not survive any sort of scrutiny.
Maybe the complete dropping of the policy makes the government look weak, but it definitely should not stop them from listening in future - even though it is not such a media story it is likely more appreciated by the electorate.
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