SOCIALIST UNITY

31 July, 2007

FOOTBALL’S DODGY MONEY

Filed under: Football — Andy Newman @ 4:01 pm

_44023591_shinawatra_203.jpgTwo human rights organisations, Human Rights Watch (HRW), and Amnesty International have expressed concern over the move by former Thai Prime Minster, Thaksin Shinawatra, to become owner of Manchester City.

During his time as Thai prime minister, he presided over extrajudicial killings during the notorious “war on drugs”. HRW says 2,500 people were killed during one three-month period at the start of 2003; he told the Thai military to employ any means to suppress an insurgency in the south of Thailand; and he suppressed the Thai media.

He has however passed the Premiership’s “fit and proper person test”: little more than a self declaration that he has never been convicted of fraud and theft.

I have discussed before the extremely dodgy past and connections of those buying into football clubs.

For example in January 2006, just a few days after Russian millionaire businessman Alexandre Gaidamak invested £15 million into Portsmouth FC, his father Arkadi Gaidamak was “questioned under warning” by police in Jerusalem in connection with an alleged money laundering scandal.
In December 2005 I wrote in connection with the elder Gaidamak’s purchase of top Israeli club Betar Jeruselem: “In 2000, the French put out an international warrant for his arrest in connection with the Angolan arms-for-oil scandal, for which the son of former French President Francois Mitterrand was briefly jailed on charges of receiving kickbacks from Gaidamak business partner Pierre Falcone. Gaidamak and Falcone allegedly arranged for shipments of Russian arms that were to have been paid for with Angolan oil contracts. There was an international ban on weapon sales to Angola at the time.”

It is reasonable to question to what degree clubs do research the backgrounds of their rich benefactors. Rather complacently the BBC reported over the take over of Hearts by Vladimir Romanov that his “financial legitimacy was thoroughly checked before the likes of Robinson and his rival Leslie Deans sold out to the new regime”

Vladimir Romanov has become astonishingly rich, astonishingly fast. He was a former taxi driver in the era of the Soviet Union, who allegedly operated on the edges of the black economy selling Beatles and Rolling Stones records on the side. As the Scotsman reported in March 2005: “By ruthlessly exploiting the lack of laws and business regulations in the early years of Lithuanian independence - which helped to make the country a centre for trade in all manner of materials, from metal to textiles to oil - he realised he could make a fortune.” Today he is valued at around $260 million.

So what is in it for them?

One might speculate that some of those who made vast fortunes out of the collapse of the Soviet Union may have taken some unethical or even illegal shortcuts. If a mafia millionaire wanted to launder their money of course they would attract a lot of regulatory scrutiny if they sought to take over a bank, or a manufacturing company in the West. But imagine if they bought a major football club in London, or Scotland, or Israel first, and became a household name before they spread their commercial empire. Might they get away with that?

When Roman Abramovich bought into Chelsea in 2003 he paid out a mere £140 million. Given that Abramovich recently sold his share of Sibneft to Gazprom for $13 billion, his investments in Chelsea are not a significant part of his fortune. Yet through his football investment he has become a household name in Britain, and has been able to draw a line under the controversy of how he made his fortune. All he needed to do was pass the Premiership’s fit and proper person test: little more than a signature on a bit of paper.

Given the enormous status and interest in football, the current obsession with celebrity culture, and the precarious financial position of many clubs, a relatively small investment can purchase a reputation that could later be invaluable in building a business empire in the West with money plundered during the rape of the Soviet Union. What is more the fan base of the individual clubs concerned may prove a valuable asset – as they invariably react favourably to large cash injections whatever the source. Newspaper and TV companies with an eye to their readerships amongst fans are less likely to probe deeply and critically into these “businessmen”.

The BNP’s Arbeitsfront splits

Filed under: BNP, Trade Unions, anti-fascist — Andy Newman @ 12:16 pm

holeskaliertesbild.jpgThis month’s Searchlight contains a very amusing account of the troubles of the BNP’s union, “Solidarity, the British Workers Union”.

The website of the fascist union spells out their big ambition:

“Solidarity is a National Movement that actively recruits UK and Irish Workers into it’s ranks. We are a Union that will encompass all industrial and service sectors within the economy - in the creation of ONE BIG UNION. Solidarity is establishing itself as a major independent Trade Union. ”

To which end the membership is organised into several sections: “Agriculture & Farming, Communications, Construction & Builder , Fire Brigade , Health Worker, Police Service, Retail / Catering, Teacher Lecturer , Transport Worker , Education and Training.”

But according to Searchlight, the accounts produced by union leader, Patrick Harrington, show that the total income over 14 months was £1105, including a £150 loan from John Walker the BNP national treasurer. Now subscriptions are £5 a month, so by my maths the “one big union” has less than 20 members! This means that there is an average of less than two members per section.

The farce gets ever more comical, because this mass movement has in fact split, and now has two separate leadership bodies, both claiming to be the legitimate union, both have their own website, and both use the same logo. This is an issue that the Trade Union Certification officer cannot adjudicate upon, and it will be interesting to see whether either side can be bothered to take it to court.

One of these “unions” is run by Clive Potter and Tim Hawke, both BNP members, and the other is run by Third Way member Patrick Harrington, and backed by, errr, the BNP.

It may seem odd that the BNP backs the group run by Harrington, as opposed to the one led by its own members, but Nick Griffin and Patrick Harrington go back a long way, to their “Political Soldiers” days in the National Front.

So what have they been up to? Well Harrington’s Solidarity has been the more productive, and put out 10000 leaflets in the six counties of British ruled Ireland in support of two BNP teachers sacked for accessing fascist web-sites while at work. The Third Way places emphasis on an Independent Ulster as one of its demands. It is a strange trade union that sees leafleting Orange marches as the natural way to recruit new members.

Potter’s Solidarity has rather charmingly said “At this moment in time we are not in a position to begin any campaigns”.

30 July, 2007

That Leaf Just Keeps On Turning

Filed under: war, Media, USA, Imperialism — Tawfiq Chahboune @ 10:05 pm

A most amusing report was published in yesterday’s Observer. The gist: the U.S. is to accelerate the arming of its theocratic and totalitarian chums in the Middle East. The highlights are as follows.

“The centrepiece of the [arms] deals is an agreement between the US and a group of Persian Gulf nations, including Saudi Arabia, that could eventually be worth at least $20bn, according to news reports. At the same time, 10-year military aid packages will be renewed with Israel and Egypt.

“The main thrust of the deal is the supply of advanced American weapons to long-term Arab allies in the Gulf. They include Saudi and five other Gulf states: the UAE, Kuwait, Qatar, Bahrain and Oman. All those countries have been jittery over the growing power of Iran and the possibility that Tehran is seeking to build a nuclear bomb. The supply of American arms to the countries not only gives them greater military power to counter Iran’s but also cements them further as American allies.”

You will of course remember that considerable spin was put upon Condoleezza Rice’s faint insinuation that the U.S. had, post-9/11, learnt its lesson and was now set on a firm course of democracy promotion (you may, as you see fit, giggle, chortle or guffaw) and cutting its long-established ties with its friendly Middle Eastern butchers (thereby guardedly accepting that its actions contributed to 9/11). The hymn for evermore would be the newly written “Yes, That Leaf Will Turn”. The spirit was on them and they sang.

When not singing the new hymn, the silly liberal commentators have had eyes glued to the leaf. The slightest gust of wind would be enough to get the laptop bombardiers back to their keyboards tapping and singing in front of microphone. Indeed, even when the leaf turned the wrong way - Iraq, say - the bombardiers would sing, sing, sing. I wonder what the liberal militarists and neoconservatives will now say - and what will they sing? No doubt they’ll turn to the hymn entitled “Lebanon 2006″, which instructs the congregation of fools and lepers to say nothing at all or change the subject. Be that as it may, we will surely be reading in the coming days from some fool who has not turned to the requisite hymn and will declare that if the unbelievers would only look hard enough, that leaf is perceptibly turning.

Lord Braggadocio

Filed under: Media — Tawfiq Chahboune @ 9:54 pm

On Saturday, strangely, my face fell off my head. Thankfully, the surgeons were able to stitch it back on. The cause of this bizarre physiological phenomenon was my own fault: stupidly and inexcusably, I read words penned by Lord Melvyn Bragg of Wigton.

His ruminations on books in the Guardian Review were…no, let Lord Bragg do the honours. Perplexed by the lack of radio and television programmes dedicated to discussing books, his Lordship announces: “For those of us who are interested in books and writers, the format can - if not rushed, if not sacrificed to a presenter’s ego - be very satisfying.”

Well, yes, and that’s a damn big “if”, your Lordship, especially coming as it does from you: “if not sacrificed to a presenter’s ego”, things just may go swimmingly. I must say that I am a little miffed when unelected posers like Lord Bragg of Is That A Wig? (as well as Lord Attenborough of Jurassic Park) regularly lecture the rest of us on democracy, tell us what a spiffing chap Tony Blair is, and, impersonating Melanie Phillips, the innocence of Israel, that battling little David among the Goliaths.

But that’s as nothing compared to having to listen to Lord Bragg interrupt established authorities and tell them what’s what. Anyone who has listened to Lord Bragg’s pitiful “In Our Time” will know precisely what I mean. Bragg the pseudo-intellectual will give Ray Monk the low down on Wittgenstein; enlighten Roger Penrose on the nature of spacetime; lecture a leading logician on Godelian incompleteness; and the list goes on. And all this on the basis of reading the notes hurriedly written by a BBC researcher who downloaded them from the web or bought a “Wittgenstein For Gormless And Egotistical Lords”. That the leading “intellectual” radio programme is hosted by such an absurdly dimwitted figure is something. If you want proof of dumbing down, ladies and gentlemen, I give you Lord Braggadocio.

LEGAL AID UNDER ATTACK

Filed under: legal aid, law centres, New Labour — Andy Newman @ 11:09 am

today.jpgToday’s Morning Star carries a very interesting article by Liz Davies about the threat to Legal Aid from New Labour. Liz is a former member of the Labour Party NEC, former national Chair of the Socialist Alliance, and a leading activist in Iraq Occupation Watch. She is also a barrister and chair of the Haldane Society of socialist lawyers, She is writing in a personal capacity.

LIZ DAVIES writes: > A NEW Cabinet, but the threat to legal aid continues. In the 20 years in which I’ve been a legal aid lawyer, there has been talk of doom and gloom every other year and the legal aid system has always survived.

But this is different. Thin-cat legal aid lawyers predict the collapse of the legal aid system within a few years, to be replaced by Tesco or Capita providing legal services to people who can’t afford lawyers. One of the Attlee government’s important achievements is to be destroyed by the Blair and Brown governments.

The proposals to restructure legal aid, titled Legal Aid Reform: the Way Ahead, are deeply technical, so much so that they make the lawyers’ heads spin. But the underlying motivation behind the proposals from the government and the Legal Services Commission, which administers the legal aid system, is significant cost-cutting.

The bottom line is that restructuring of legal aid payments will, in fact, cut the amount of legal aid available so much that many legal aid practitioners will go out of business.

Most legal aid firms are already run on a shoestring. In order to provide legal services to people who cannot afford lawyers, solicitors must bring in enough income to pay the rent for the office, the salaries of the lawyers and support staff and basic administrative expenses, besides paying themselves a salary that will at least allow them to pay their own living costs.

For many years, legal aid solicitors have found that money is tight and they’ve been surviving by careful balancing of the books, keeping an eye on cash flow and so on. No solicitor living off legal aid income could be described as a “fat-cat lawyer.” Each year, a few more legal aid firms bite the dust.

Already, there are areas of the country known as “advice deserts” where it’s impossible to find a legal aid lawyer. Try to get advice on a housing prob-lem in Gloucester and you’ll be told that the nearest legal aid lawyer is in Bristol.

There are, of course, overstretched citizens’ advice bureaus and other advice agencies, but they too face a struggle each year to stay open. And they would be the first to agree that some problems, particularly where complicated litigation is involved, require specialist lawyers.

The government’s proposals, fiendishly complex as they are, will essentially mean that most legal aid lawyers will simply find that the income they bring in is not enough to pay for the office outgoings. And they will have to close. Some will turn to private-sector commercial work. Others will choose different careers.

The losers will be all those members of the public who can’t afford the exorbitantly high fees for private-sector law-yers but need advice and representation.

The government argues that legal aid services will simply be restructured, so that efficient firms will survive. It points to “swings and roundabouts,” arguing that money will be spent in a different way.

As a result, it says, large-scale efficient firms will cover their costs by making significant amounts of money on some cases so as to subsidise other loss-making cases. The problem is that the sums don’t work. With the amounts of money that the government proposes, there simply won’t be enough well-paid cases to subsidise the loss-makers.

The Commons constitutional affairs select committee recently published a scathing condemnation of the government’s proposals. The committee said that there was a complete lack of reliable research into the potential effects of the government’s proposals, which were being introduced “in too rigid a way.” There were substantial risks inherent in the scheme which the government had simply dismissed.

There is no evidence to suggest that large-scale solicitors’ firms will be able to step in and fill the gaps as smaller firms go out of business. Firms staffed by black and ethnic minority lawyers were at particular risk, since they tended to be smaller firms, and the committee wondered whether the disproportionate effect on black lawyers and black clients would constitute a breach of race equality legislation.

Overall, the committee considered that there was a very real risk that so many solicitors will go out of business that legal aid will no longer be available to people who need it.

The government’s response was just to repeat its belief that the proposals were fine and that there was no real threat to the availability of legal aid services. It remains defiant in the face of criticism not only from the select committee and other MPs but also senior judges, the whole of the legal profession and the voluntary, not-for-profit advice sector.

It is the opposition by the not-for-profit sector - law centres, advice agencies, citizens’ advice bureaus and housing aid agencies - that puts the lie to the government’s claim that this is all about fat-cat lawyers living well off the legal aid budget.

If this government really wanted to attack fat-cat lawyers, it would reward the not-for-profit sector for providing cheap, expert advice. Perhaps it might even compel fat-cat commercial lawyers to redistribute some of their income into legal aid towards not-for-profit agencies.

Instead, the not-for-profit sector is struggling to keep its head above water. Several law centres in London are already facing financial crises and can’t be sure that they will survive the next few months.

The not-for-profit sector is just as clear as its colleagues in private practice that the proposals to restructure legal aid mean a direct cut in the funds available and that it can’t predict that not-for-profit legal services will survive.

The government claims that large firms and networks of not-for-profit agencies will mean that legal aid is still available.

Community legal aid centres (CLACs) and community legal aid networks (CLANs) will enable networks of specialist solicitors and advice agencies to tender for contracts to provide all the legal aid services in a specific geographical region.

But one of the pilots has already collapsed when the only bidder, the local law centre, had to withdraw its bid because it couldn’t provide a service on the money being offered.

The worry is that legal aid services delivered through these acronyms - CLACs and CLANs are now to be joined by integrated social welfare centres (ISWCs) - will suffer the same fate as other outsourced public services.

Far from being delivered by professionals working for the public sector, the private-sector “process outsourcing” industry, led by Capita PLC, will be aggressively bidding for contracts to provide legal advice at low cost.

Expect legal aid call centres, staffed by non-lawyer call-centre workers, working through computer menus and reading from a script. “If you have been arrested, press 1. If you are contemplating a divorce, press 2. If you’ve going to be evicted, press 3.”

Expect Capita and others to create the same shambles in legal aid services as they have done in housing benefit departments, education and health administration, software contracts and the like. Watch out for supermarkets offering half-hour advice checks with cut-price tins of tomatoes.

A lucrative coincidence

SO, no charges over “cash for honours.” Not enough evidence that anyone solicited money for the Labour Party with the promise of a peerage or that anyone gave or lent money for a peerage.

Just a coincidence, as Dave Osler, the author of Labour Party PLC, points out, that all the individuals who have given £1 million or more to Labour have been given peerages or knighthoods.

28 July, 2007

COME HELL OR HIGH WATER

Filed under: flooding — Andy Newman @ 10:35 pm

_44012761_dorcan_way.jpgThis picture is Swindon last week. The residential and light industrial area of Dorcan under water. Two days ago the train line between Swindon and Chippenham was under water, and trains were turned back. The town of Wantage was largely cut off by road last weekend, and the rail line between Didcott and Oxford is closed.

Actually Swindon has not been flooded too badly, compared to say Tewkesbury, but a week ago the main dual carriageway through the centre (The Great Western Way) was shut, at the same time the M4 was closed due to a landslide, and all the motorway traffic was diverted through our streets. A chap I know had to be rescued from his house by firemen in a boat.

In Oxford, there has been serious flooding of homes in Botley, and other areas. This is city centre flooding in a major urban centre.

Brize Norton last week had a rain storm so severe that meterologists say such bad weather should only occur once every 600 years.

Roads are shut in Gloucester, and people are advised against road travel through the county. Panic buying of bottled water has meant that the shops were rationing. Now the army are handing out water in some areas.

Thousands are homeless, and some are not expected to return to their homes for a year.

 On this blog recently we have been discussing why there are regional inequalities in England. Is it a reasonable question to ask why the flood protection measures are better in London than on the Severn and upper reaches of the Thames? This is a genuine question, as I am not an expert on drainage!

But in 2001 the Environement Agency signed up for creating action plans for flood risk for the entire country - for all 68 areas designated under the EA’s auspices, only four of which had been completed by the target date of April of this year .

the responsible government Minister, Lady Young, did not prioritise bringing this task in on time.

I really don’t know. But I suspect that if this level of flooding was occuring within the M25, there would be a lot more government urgency.

And this is how bad it can be: thanks to Alex Nichols for sending this picture:

weatherabig.jpg

27 July, 2007

outside London, because that’s where England is

Filed under: England — Andy Newman @ 12:50 pm

I haven’t time to write anything today, so I will just refer you to this very interesting article by Phil.

GOD SAVE HISTORY

Though I will remark that I recently heard Tony Benn dismiss the idea of an English national identity on the basis that he is a Londoner, and his loyalty lies to London not England (Thanks Tony, did you think that back when you represented Bristol East, and Chesterfield?).

There is perhaps an interesting question of whether the fact that the most culturally, politically and economicaly dominant region of England has such a strong metropolitan identity of its own has disadvantaged the rest of England, and skewed the debate about English national identity.

26 July, 2007

Tackling climate change - by pricing people off the railways!

Filed under: Railways, Trade Unions — Martin Wicks @ 2:17 pm

virgin_train_edin02348a.jpgFrom: http://martinwicks.wordpress.com

Today’s Times headline declares: “Rail Fares to soar as funding is slashed”. Rail passengers face above inflation fare increases every year for the next decade (1% above inflation each year). In effect passengers will be made to pay a higher proportion of the cost of running the network. From 2009 the annual subsidy for the railways will fall from £4.5 billion to £3 billion. Needless to say the government proposes to leave in place the privatised structure of the railways.

The government’s Transport White Paper says that whilst there are no plans to abolish the price cap on cheaper saver fares, it might remove the cap in future and give train companies much greater freedom to raise fares if they could show that “such a move enjoys customer support”. You can just imagine the customer lining up to campaign for increased fares. Obviously the drafters of the White Paper have a great grasp of reality! Transport Minister Tom Harris said it would be “sensible” for the farepayer to make an increased contribution to the cost of running the railways.

What has been the response of the unions? The RMT declared that the investment in parts of the infrastructure was “ a step in the right direction”. However, the fare increases would “block increased rail use on the scale demanded by the environment and economy, and that the private franchise system would have to end if the railways were to play their full role in cutting emissions.”

“We need a rail fares system that is going to encourage more people out of their cars and onto trains, but that will not be achieved by signing off franchise agreements that allow massive fares hikes…It is the fragmented structure of the industry that stands in the way of achieving the massive shift from road to rail that the environment and economy need.

Franchising and rolling-stock leasing are huge drains on the network, and returning the industry to the public sector would release at least £800 million a year to be invested in further infrastructure and services,” Bob Crow said.

TSSA General Secretary Gerry Docherty denounced the government’s decision “to make passengers pay for its decision to cut subsidies by a half between 2009 and 2014″. The TSSA supported Gordon Brown for party leader on the grounds that the union could influence him more if they did. It’s therefore understandable that Gerry sounds a little irate.

“Ministers claim they want to encourage rail travel and then kick passengers in the teeth with huge regular hikes in fares. They are pricing people off rail and onto the roads. This is the economics of the madhouse. They claim they want cheaper public transport and then do everything in their power to discourage it.”

Gerry might have added that Gordon had kicked him in the teeth.

In a rather mealy mouthed statement the Amicus section of Unite welcomed “the on-going commitment of the government to long term investment in the UK rail network”. However, said National Officer Bob Rixon, the union was concerned that “our members and the UK economy is not fully benefitting from these unprecedented levels of investment.”

“…Unite believes that in order to move the industry forward and provide the best value to both the taxpayer and passenger the Government must move away from its rigid adherence to the current flawed privatised model introduced by the Conservative party.” For one moment there I thought he was going to call for renationalisation of the network. But no. “All stakeholders must make every effort to ensure that the UK’s rail network is no longer characterised as a fragmented industry with a fragmented approach to solving its problems and is developed into a service that both the work force and the public are proud of.”

That sounds like an appeal to the private companies to act ‘reasonably’. The ‘fragmented industry’, however, cannot be resolved by ‘stakeholders’ working together, but by ending the privatised structure, and running the network as a public service.

Transport Secretary Ruth Kelly complained that the government has been saddled with the cost of clearing up “the mess of a botched privatisation”. What better way to clear it up than leave it in place!

This policy, of course, makes a nonsense of the ‘green’ credentials of the government. As Transport 2000 said, you won’t tackle climate change by priciing people off the railways.

Housing Green Paper - “the devil is in the detail”

Filed under: housing, Trade Unions — Martin Wicks @ 2:10 pm

burghleyst2.jpgFrom: http://martinwicks.wordpress.com

Some weeks back the Daily Mirror announced on its front page “the return of the Council house”. Gordon Brown would apparently enable local councils to start building them again. At last, “a government that listens to the people” said Austin Mitchell MP (somewhat prematurely), one of the mainstays of the Defend Council Housing campaign. In response to George Monbiot’s criticism of union support for New Labour in the Guardian, Tony Woodley wrote: “We have had successes. Unions put forward the arguments for … building more council housing. Grassroots activists at Labour ‘s conference supported us and the government acted (our emphasis).”

How has the government acted Tony? We would see the action as opposed to the talk when the Housing Green Paper was published. You can judge for yourself by reading it: Housing Green Paper .The T&G section of Unite welcomed the government’s announcement of an extra £8 billion for affordable homes as “a big step in the right direction”. “Gordon Brown has listened to the millions struggling to buy or rent a home,” said Jack Dromey, deputy general secretary of the T&G.

However, said Dromey: “The Green Paper does not go far enough in putting right all past wrongs, when tenants were told to transfer from the council if you want desperately needed repairs and renovation. The T&G section of Unite will continue to press, therefore, for further progress on a greater level playing field in the promised second-stage announcement in the autumn.”

The Defend Council Housing Campaign, in an initial response to the Green Paper said: “The Housing Green Paper published today falls a long way short of meeting the expectations of supporters of council housing and the five tests agreed at the Defend Council Housing conference on July 12 (see DCH policy statement). In the face of pressure from a formidable alliance of council tenants, trade unions, councillors and MPs government is still trying to wriggle to avoid conceding the ‘Fourth Option’ of direct investment in decent, affordable, secure and accountable council housing. The government’s core strategy for providing new homes relies on the private sector (including Registered Social Landlords). The private sector has failed up to now to provide the homes we need and there is no indication they will do any better in the future.” What does the government propose? At least 70,000 more “affordable homes” by 2010-11. But these include ‘shared equity’ and ‘shared ownership’. You may remember already that you can buy a 25% share of a house (paying part mortgage and rent). The government was considering reducing this to a ludicrous 10%. They are proposing at least 45,000 new ‘social homes’ a year by 2010-11, with a goal of 50,000 by the next spending review. True to form they want to “promote greater private sector involvement in increasing social housing”.
Coyly the Green Papers says that “Demographic change and other factors have reduced the number of available lettings for households newly entering the social sector.” Needless to say the lack of council house building and the policy of “right to buy” are not mentioned.

The only ‘social housing’ which has been built since the days of Thatcher has been built by Housing Associations. The Green paper says: “We now want to test whether some council-backed schemes could bring in other benefits, not least when linked to council owned land, which would offer good value for money in comparison with traditional Housing Association development.”

It further says: “We expect councils to undertake direct development only where it offers better value for money than other options. But where they choose to invest their own money innew supply, we think councils should be able to keep the income and capital returnsfrom those additional new homes. We would welcome views on the practicalitiesof making these changes, as well as the potential for them to encourage more localinvestment in new housing.”

Holding open the possibility of councils building new council housing the government then indicates that such a situation would be a rare event.

“However, before we considered extending access to social housing grant to councils in their own right, we would need to establish rigorous criteria for selecting potential local authority developers. These would have to ensure value for money and deliverability, but also have a means of controlling the public sector spending and borrowing impacts of an increase in council house building, as any increase would have to be affordable within national as well as local public expenditure and borrowing limits. In most cases, we would expect models which offer access to private finance to provide better value for money, delivering more affordable homes for the public investment.”

The government wants to see councils setting up local companies, probably with private sector involvement, to build new houses. This may well be outside of the Housing Revenue system, and hence they would be able to keep hold of their receipts. They are considering ‘self-financing’: “allowing somecouncils to in effect leave the HRA subsidy system and retain their rental incomes.”

The government is considering ‘reform’ of the HRA subsidy system whereby monies are redistributed to poorer areas. The Green Paper says: “The case for more local control over income and investment decisions has been strongly made. But dismantling a redistributive system would risk creating winners and losers. This is a sensitive issue and we will need to understand how changes could protect those who depend on subsidies generated by the surpluses of others within the current system.”

The government is also reviewing the rules in relation to capital receipts “to incentivise local authority shared equity schemes”. It proposes to “Support local councils to build additional shared ownership homes on their land through new Local Housing Companies”, and “Increase opportunities for social tenants to purchase a share in their own home, with further proposals later this year.”

What we clearly have in the Green Paper is Brown’s refusal to implement the “Fourth Option” and the policy which has been passed at the last three Labour conferences. Brown has given the appearance of a concession but in essence he refuses to give councils the right to build council housing because it would be counted towards public sector borrowing. He still maintains his prejudice against the public sector. Indeed it is not beyond the bounds of possibility that the review of the HRA would open up the prospect of ‘self-financing’ councils similar to NHS Trusts which compete with each other.

When you consider that there are 1.6 million people on Council waiting list, the government’s aim of 50,000 units of social housing for rent per year, would take over 30 years to create enough units for them. In his press release Jack Dromey said that: “The prejudice of Whitehall against town hall is now being replaced with a recognition of the key strategic role of councils as a builder and provider of affordable homes for rent.” Jack is seeing what he wants to see and not what is there. In fact the Green Paper contradicts his statement. The government is proposing that where the local council does have a role in building the natural assumption will be that some other ‘vehicle’ will be chosen rather than the ‘direct investment’ which the Defend Council Housing campaign has been demanding. Moreover, the government intends to maintain the ‘right to buy’ which has been responsible for the massive decline in the number of Council houses available.

The DCHC picked up the rhetoric of the government in relation to ‘choice’. This might have been a legitimate tactic, calling the bluff of government rhetoric in a situation where council tenants were in reality being denied the choice of staying with their councils and raising the standard of the stock. However, in the light of the Green Paper, the emphasis should now be shifted to the need for a council house building programme which requires public subsidy. And we should should demand the end of the ‘right to buy’ which has greatly worsened the housing crisis.

As the collapse of Metronet shows, PFI/PPP and all variants of privatisation are a false economy, because although the debt is not shown on public sector borrowing, the public has to pick up the tab is a company goes bellyup.

I’ll give the last word to Jack, speaking at the DCHC conference on July 12th. “Yesterday saw, again as Austin has said, some welcome announcements. There’s 3 bills and a commitment to 3 million new homes by 2020. Including crucially councils once again being able to build new homes. Its an irony isn’t it that when I grew up, Labour and Conservative governments used to vie with one another as to who could build the most homes. It was Harold McMillan who boasted one year of having built 300,000 new homes. Once again we want to see massive council house building on that scale. A green paper will now be published, next week… the devil will be in the detail. “

Yes Jack, the devil is certainly in the detail.

THE TASKS OF AN ENGLISH LEFT

Filed under: England, Wales, strategy, Identity, Scotland — Andy Newman @ 12:47 pm

english-flag.jpgIt is perhaps remarkable how little discussion there has been in England of the real differences in public policy between England, Scotland and Wales that have arisen since devolution. This is I think partly because the London based news media are focussed on the metropolitan centre, and so are the dominant forces in British and English politics.

Michael Keating, Professor of Scottish Politics at the University of Aberdeen, explains: “The Labour Party may be the dominant political force in London, Edinburgh and Cardiff. But Scotland and Wales have stuck more to the traditional social democratic model of public service delivery. This has led them to stress non-selectivity, professionalism and uniformity, while rejecting foundation hospitals, star-rated hospitals, school league tables, beacon councils, elite universities and selective schools. Scotland also scrapped up-front university tuition fees and rejected top-up fees. At the same time, free care for the elderly has been introduced north of the border.”

He goes on to say: “Labour in England, however, has moved furthest away from the ideal of uniform, public provided services towards differentiation, internal markets and mixed models of service delivery. This was apparent in the health service from an early stage. Scotland has not reintroduced internal market elements as in England, and there are no plans for foundation hospitals.”

There are some important things to say about this.

One of which is that perhaps unexpectedly the main force for policy variation since devolution has been the UK government implementing policies in England, which Scotland and Wales have not followed. With Plaid in coalition in Cardiff and a SNP government in Edinburgh, we may see an accelerating dynamic of the national governments of Wales and Scotland positively introducing more policy, rather than resisting.

So far there has been great timidity in Cardiff and Edinburgh in using their powers. A couple of years ago I interviewed Ron Davies, the architect of Welsh devolution, and he explained this. “There is space for making things a lot better. Unfortunately there are New Labour attitudes in the Labour Party in Wales. There are gains, but the timidity of New Labour is preventing us from making even more gains. Timidity in not just philosophical terms but in policy terms as well. … … Because they believed and argued very strongly in 1979, and still do, that the solutions to the problems of Wales are to be found in exactly the same mechanism as the problems of the North of England or wherever. The answer is a strong labour government in Westminster who will legislate all these problems away. It doesn’t understand that there are issues about patriotism, of identity, of wanting to do things differently in Wales, of nation building if you like. To free up the initiatives we have in Wales, because our scale is different, because we do have different values, there is a greater sense of community, we do have distinctive policy issues of our own we do have issues about language and so on. And there is a large part of the Labour Party that is entirely uncomfortable with that agenda, and didn’t want to go down that track.”

Secondly, the policies voted through for England have been won by the votes in parliament of MPs with Scottish constituencies, which are unaffected by those same policies. This is the so-called West Lothian question, which is simply undemocratic.
Thirdly, the lack of debate has meant there has been little discussion of the big inequalities in public spending.

The headline figures show a difference between expenditure between the nations. For example education and training expenditure in 2004/2005 stood at:

England - £1,086 per head
Wales - £1,107 per head
Northern Ireland - £1,435 per head
Scotland - £1,179 per head

Health expenditure in 2004/2005 stood at:

England - £1,350 per head
Scotland - £1,563 per head
Northern Ireland - £1,476 per head
Wales - £1,421 per head

The danger is that this will become the focus of the political debate, being fuelled by characters like Garry Bushell, and opportunistically exploited by Cameron’s conservatives.

The English left MUST have a very different agenda.

We need to endorse and support the more progressive direction from Cardiff and Edinburgh, and argue that those policies need to be extended to England. The trade unions may be able to play a role here in publicising the success achieved in Scotland and Wales.

For example, the extra expenditure per head in education, smaller class sizes, and greater emphasis on teaching rather than testing has led to pupils in Scotland being 50 per cent more likely to progress to higher education. (More than 37 per cent go to to college or university compared with just 25 per cent of English students.) And Scottish schoolchildren are also up to a third more likely to get good grades at age 16. Scotland is also abolishing tuition fees for universities from 2009, while students south of the border must pay up to £3,000-a-year for their studies.

However, the main argument from the English left must be that the differences between the nations is masking the fundamental regional inequality within England, and the effect this has of exacerbating class inequalities. A ‘competitiveness index’ published in 2001 for the UK shows that the three best performing English regions – London, South East and Eastern – widened their economic lead over the three worst by over 30% since 1997, and the gap between London and the North East has grown by more than 35%

As I have written before “the UK economy is geared to maintaining London as a major financial centre, even though, according to a recent report by Goldman Sachs, this has led to the pound being overvalued by 12% in recent years – a consequence of which is 100000 manufacturing jobs have been lost in Scotland since 1999. (This has also affected the English regions, Wales and Northern Ireland). 91000 Scots live in desperate poverty. Cambridge university economist, Gordon Adamson, explains in Scottish left Review how relative economic underdevelopment in Scotland is because England’s economy crowds out Scotland’s. More specifically, the policies of New Labour have been to overheat the economy in the South East, based upon house price inflation. The consequent equity withdrawal and private debt has driven the economy, rather than strategic investment in infrastructure and manufacturing capability. Today, one third of the EU’s entire consumer debt in the UK: nearly all of it in England. This has further policy implication as New Labour’s failure to provide adequate social housing is designed to prop up these exaggerated house prices.”

The figure of 100000 manufacturing jobs lost in Scotland can be scaled up to a million in England.

As Kevin Morgan from Cardiff university has noted: “As the UK’s most over-developed region, the south east is the chief source of inflationary pressures, hence UK monetary policy tends to be calibrated to the over-heated conditions in this core region rather than the ‘under-heated’ conditions in the less developed regions of the north and the west. In a celebrated public relations gaffe the Governor of the Bank of England, Eddie George, actually conceded this point when, asked if job loss in the north was an acceptable price to pay for the control of inflation in the south, he was reported to have said ‘yes, I suppose in a sense I am’. ”

Of course, the over-heated South East economy also leads to extreme wealth differentials in that region. The housing crisis is most acute there, as workers on ordinary wages are excluded from buying, and social housing has not been expanded to meet demand. Immigration has also exacerbated the overloading of social infrastructure, as the government has failed to expand resources for communities already struggling to cope. This is not an argument against immigration, but a recognition that immigration is not cost free, and working class communities need to be resourced to cope, and the trade unions need to be further empowered to resist immigration being used to depress wages and conditions.

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It has become less fashionable to talk of the North South divide, but it still exists. Its disappearance has partly been a government conjuring trick, through reclassifying the unemployed as “economically inactive” instead. According to Morgan: “In 1997, for example, the number of men in the 25-64 age group who were classified as inactive was more than double the number classified as unemployed. The contrasts between north and south as regards inactivity are enormous in this age range, with some 30% without a formal job in the northern regions compared to less than 12% in the south”

A quarter of the population in the South East of England has private medical insurance, and eleven per cent of South East pupils go to private schools.

What is more, economic growth in the south east has been fuelled rather than frustrated by New Labour. They have refused to recognise the overwhelming of the social infrastructure and the social inequality which challenges the sustainability of growth in the south nor do they care about higher levels of deprivation in the north. Accumulate, accumulate, accumulate, is Moses and the prophets for New Labour.

What does this mean?

Most of the discussion of the break up of the UK has looked at the question from the perspective of Wales and Scotland.

The imperial British identity has been conflated with Englishness for most English people. However the widening policy and cultural differences between the nations on this Island, and the probability of eventual Scottish (and perhaps Welsh) independence will make us decide whether we wish to be England or Little Britain.

It is inevitable that there will be a debate about our English identity, and the values that we wish to embrace in our culture. The left needs to participate in that debate, and fight against the Little Englanders.

However, we will be greatly aided in this if we recognise that the British state, and the imperial project it entails, greatly disadvantages our people. Why does Britain now have the world’s second largest armaments expenditure? Standing at 5% of the global total in 2006 ($59,200 million at 2005 prices). Above Israel, China and Russia! Why does Britain need Trident at the cost of £85 billion? Why does Britain need a seat on the UN security council? This is paid for by taxation, and given Britains regressive tax regime, the tax burden falls disproportionately on working people.

But the economic policies of the British state, in promoting London as a major financial centre whatever the cost to the underlying economy, and encouraging economic growth in the South East at the expense of the rest of the country must also be challenged. This is further exaggerated by the fact that London is the only English region with its own government, able to set its own agenda – under Ken Livingston this has been broadly more progressive than the UK’s agenda, but that may not always be the case.

If Scotland becomes independent then the English regional question, must be pushed to the foreground, and perhaps we will aided by the Welsh if they decide to stay a sister nation. Once the paralysis of what Tom Nairn calls the decrepit state of Ukania is over, a federal English state may address the imbalance, and this itself would require a break up of the two great electoral behemoths, an inevitable consequence of PR in regional elections. The English parliament was subsumed into the British one in 1707, when it is restored might we see a second chamber to replace the House of Lords  that represents the regional assemblies, and prevents a London- centric policy agenda?

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