Labour will ban MPs from having second jobs – hooray!

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Andrew Bridgen, anti-business, ban, conflict of interest, consultancy, consultant, corporate, corrupt, Daily Mail, declare, director, employment, experience, Facebook, financial interest, government, Institute of Directors, job, Labour, members' interests, Mike Sivier, mikesivier, MP, Parliament, people, politics, professional, real world, register, researcher, second, share, Simon Walker, special advisor, vote, Vox Political

 

Corporate ‘partners’: These are just some of the companies that ‘work with’ your representatives in Parliament. Wouldn’t it be better if the relationship was kept at arms-length and your MP wasn’t their employee?

 

This is an important step on the way towards winning a personal crusade of Vox Political – to clear corruption out of the House of Commons.

The Labour Party will change the law to ban MPs from having second jobs including corporate directorships, employment or consultancy work.

Think about it; this means MPs will no longer be allowed to have dangerous conflicts of interest between their positions as representatives of the electorate and any responsibilities to other employers.

It would go a long way towards meeting the terms of the Vox Political e-petition from last year, which called on Parliament to ban MPs from voting on matters in which they have a financial interest.

It would not help when MPs have shares in particular companies – but those should be declared in the register of members’ interests in any case, and neglect to mention such interests should lead to strict penalties.

I know. The Maria Miller case (to quote a recent example) isn’t going to fill anybody with hope, is it?

A Daily Mail report has stated that the move will infuriate many MPs on both sides of the House, and some Facebook commenters have already trotted out the now-tired line that they’ll believe it when they see it, or Labour won’t be able to push the measure through as MPs would oppose it.

That’s a mistake – a whipped vote in a House of Commons with a Labour majority means an automatic victory – in exactly the same way the Coalition government has continually won controversial votes in the current Parliament (against ardent Labour opposition that has subsequently gone unnoticed by the public – or at least, by many commenters on this site).

The Mail‘s article affected shock at Labour’s temerity in wanting to force this measure on members of other political parties, claiming it is likely to fuel claims that the party is anti-business.

This is, of course, poppycock. How is it anti-business to make sure serving members of Parliament concentrate on their jobs as public representatives, rather than trying to serve two masters at once? It seems more likely that business will revive without their over-rated expertise.

After all, look how well they’ve managed the nation’s finances!

The Mail also quoted some goon who said it meant the electorate would be lumbered with more career politicians who have worked as researchers and special advisors, when there need to be MPs in every party who have had “real world” professional experience.

This too is poppycock. There is no reason a person in any career cannot stand for election and, if returned to Parliament, take a sabbatical from their day job until they are voted out again or choose to return to their vocation.

Ah. I’ve just looked up the name of the goon who made this claim: Tory MP Andrew Bridgen. Need I say more?

Finally, the Mail turned to the Institute of Directors for support. It’s as if the paper really wanted to hammer home how corrupt the system has become, and will remain, if left as it is. Of course, the director general, Simon Walker, said MPs could better serve the public if they have “active links” with the business community.

Well, of course!

How could he influence Parliamentary decisions without a few directors in the Cabinet?

This is a policy that we should all support to the hilt.

I strongly advise you to contact your MP and seek their support for it.

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Public sector – good/private sector – bad

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Many of you may be aware that I live in a large county called Powys, that has a small population. This means that the amount of money the local authority receives from central government and local taxation is always stretched very thin, in order to provide the services required across – what is it? – 6,000 square miles.
Given that context, it should come as no surprise at all that some of the information I have been receiving about the way that money is being spent has raised concern.
It seems the county council has employed a consultancy to carry out a survey of housing stock – to pinpoint where repairs are required and carry them out. This consultancy has taken £1.5 million from the council’s budget and not one repair has yet been carried out.
In addition, it seems most of the council’s own employees at its benefits section have quit, to be replaced by staff from an agency. This organisation charges £20 per hour for each worker’s services, I’m told.
Is this value for money? I don’t think so.
I think it is a local symptom of a national malaise: the disastrous affair public authorities have been having with the private sector. It is an affair that has already led to the humiliation of the government in the G4S Olympic security debacle; an affair that has its roots in the Private Finance Initiative that was launched by the Conservatives in the 1990s and continued into the current century (to my shame) by my own political party, Labour.
I have recently become quite a fan of ‘lefty’ columnist Owen Jones. This may come as a surprise to some readers as not only has he enjoyed greater success than me at the same career (journalism), but he is 16 years my junior. Talented, young and successful – I should be green with envy rather than cheering him on, right?
In fact I’m simply glad that someone is around to say what I would have said, in his position.
You may have heard this gentleman speaking on the BBC’s Any Questions (Radio 4, last Friday and Saturday), on the very subject of private involvement in public services. If you did not, allow me to enlighten you.
“What’s happened with G4S has exposed the dogma of the last 30 years, that the private sector is good and efficient, and the public sector is wasteful. What happened when G4S failed? The state had to go in and fill the vacuum – and it’s not just there we’ve seen it. We’ve seen it with A4E, this welfare to work programe, this company that basically took taxpayers’ money to line the pockets of those who were running it; we saw it with PFI – started by the Tory government, continued under New Labour, that’s like paying for public services on a credit card, getting these private companies to do what the state should have done, apparently it costs up to £25 billion more, of our money. It’s the same with the London Underground; it’s the same with rail privatisation – we’re now paying up to four times more on subsidies for private rail companies than we did in the time of British Rail. And we’ve seen it recently with water. We just recently had a drought when rain was absolutely hammering the southeast. That’s because a water company sold off 25 reservoirs in the last 20 years.
“Public services should be run by the public sector, accountable to us, democratically-run, instead of taxpayers’ money lining the pockets of private companies who do not have our interests at heart; they just want to make profit out of our services.”
In support of that, let’s have a few facts and figures. Those I have at hand come from a book entitled ‘You Are Here’ by satirical luminaries Rory Bremner, John Bird and John Fortune, with Geoff Atkinson. It was published in 2005 so the information – accurate at the time – may be out of date by now and I would be happy to read any updates on what follows.
In 2005, this was the situation:
When the railways were privatised (by the Conservatives) it was decided that one company would own and run the tracks, one group of companies would operate the trains and another group of companies would own them. There are three rolling stock leasing companies – roscos – that lease their trains to the operating companies. These trains cost just over £2 million to build and are leased out for £500,000 per year. Their lifetime is anything up to 40 years – which is a huge profit margin.
But don’t worry – they don’t receive a penny of taxpayers’ money. No – the subsidy for the South Central franchise was set to increase by £342 million between 2005-2010. Of this, 80 per cent went to the roscos for new rolling stock – around £273,600,000. But it wasn’t taxpayers’ money by then. It was taxpayers’ money when it was part of the operating company’s subsidy, but when it was passed between that company and the rosco it was a simple business transaction.
That’s how they get away with it. You and I both know that the cash came out of our pockets, but because it went through a middle-man, these companies can call it their own.
You might be interested to know that the three leasing companies are (or were, in 2005) all owned by banks.
According to ‘You Are Here’, “The Future of Transport White Paper says: ‘The privatisation of the rail industry in the early 1990s assumed that private sector discipline and innovation would drive down the railway’s subsidy requirement and drive up the quality of service. In part this has been borne out.
“Rail users might well ask: In which part? The same document shows 80 per cent of trains arriving on time in 2004, compared to 90 per cent in 1998. The latest National Rail Trends shows total government support to the rail industry in 1995-96 of £431 million. For 2002-03 it was £2,588 million.”
Private Finance Initiatives were intended to bring private sector cash in to fund public services – which may seem like a good idea on the face of it. As ‘You Are Here’ states: The deal is simple. Money for the new service is raised privately in the money markets and thus kept off the country’s balance sheet… but like any free offer, it does come with small print.
“The long-term value of PFI contracts may go down as well as up. Your public services are at risk if you do not keep up the repayments. The return for consortiums running PFI projects” – on the other hand – “may go up and up and up. Standard terms include: cost-cutting, short-term employment contracts, high management costs, huge legal costs. Every element must be a profit centre. After expiry of contract (typically 35 years) the consortium is under no obligation to renew the terms of the lease and can renegotiate at more favourable rates or move out of the public service sector and turn the property into a hotel or office block.
“PFI often means that an organisation which previously worked to a single goal is now in competition with itself, as different parts of the same system strive to outbid each other, the primary goal being to enhance profitability rather than deliver a service.”
To enhance profitability rather than deliver a service.
In February last year (2011), David Cameron promised to deliver a ‘revolution’ in public services, in which he envisaged everything but the security services and the judiciary being privatised. You can read about it here. Private prisons; private police; private health services – we’ve seen these rear their ugly heads already, and I’m sure more is to come.
Considering the disastrous profit-driven performance of the private sector in public services, as detailed above, I cannot think of anything worse than letting private companies continue with what they’ve got, let alone adding anything new to their portfolio of travesties!
With this in mind, I have to ask why Powys County Council thinks employing a private firm to survey its housing stock, or workers for a private agency to administer its benefits, is an economical use of my taxpayer money.
It’s time the madness stopped, and if Westminster is too sick to do it, then perhaps local government should lead the way back to sanity.