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The Tories have run out of momentum, ideas and even arguments

25 Friday Apr 2014

Posted by Mike Sivier in Business, Conservative Party, Economy, Education, Environment, Labour Party, Media, Politics, Tax, UK, Utility firms

≈ 11 Comments

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bank, banker, charge, Co-op, company, Conservative, crash, Credit Crunch, Ed Miliband, edict, election, energy, Europe, finances, firm, Fraser Nelson, free enterprise, general, George Osborne, government, green, ideological, ideology, inequality, interference, investment, Labour, lloyds, long term economic plan, market, neoliberal, predator, price freeze, privatisation, public, purse, raid, recovery, regulation, regulator, Reverend Flowers, rip-off, Scandinavia, Spain, Square Mile, teacher, The North, The Spectator, Tories, Tory, Tory Democrat


Old Labour: Oversaw the longest periods of economic growth in British history and DIDN'T cause the biggest crash (that was neoliberalism, beloved of Conservatives). There is nothing wrong with it.

Old Labour: Oversaw the longest periods of economic growth in British history and DIDN’T cause the biggest crash (that was neoliberalism, beloved of Conservatives). There is nothing wrong with it.

Dear old Fraser Nelson has been trying to generate some momentum against Ed Miliband’s plans for a Labour government.

But, bless ‘im, not only did he hit the nail on the head when he wrote (in The Spectator), “Tories seem to have lost interest in ideas”, he might just as well have been talking about the Tory press because – other than the parts in which he praises Miliband for his political acumen and perception, Fraser has nothing new to say at all.

“Why, if he is such a joke, has Labour led in the opinion polls for three years solidly? And why has he been the bookmakers’ favourite to win the next general election for even longer?” These are the questions Fraser asks, and then goes on to answer in the most glowing terms possible.

“His agenda is clear, radical, populist and … popular. His speeches are intellectually coherent, and clearly address the new problems of inequality,” writes Fraser.

“His analysis is potent because he correctly identifies the problem. There is [a] major problem with the recovery, he says, in that the spoils are going to the richest, and it’s time to act… George Osborne does not talk about this. He prefers to avoid the wider issue of inequality. This leaves one of the most interesting debates of our times entirely open to Miliband.”

All of the above is a gift to the Labour leadership. Fraser has scored a huge own-goal by admitting the Labour leader – far from being “a joke”, has correctly identified the problem and can say what he likes because the Tories won’t even discuss it!

Worse still (for Fraser), he seems to think that telling us Ed Miliband is mining Labour’s past policies to get future success will put us off.

Hasn’t anybody told Fraser – yet – that it is current neoliberal policies, as practised by both Labour and the Tories, that caused the crash of 2007 onwards? With that as our context, why not go back and resurrect policies that offer a plausible alternative?

As a Conservative, Fraser should appreciate the irony that it is Labour who are now looking at the past to create the future.

“The philosophical underpinning is rehabilitated: that the free enterprise system does not work, and should be put under greater government control,” writes Fraser. “That companies, bankers and markets have buggered up Britain — and it’s time for people, through Big Government, to fight back.” Who could argue with that?

Then Fraser goes into some of those policies, like the plan to revive the 50 per cent tax rate. “But Miliband isn’t taxing for revenue. He’s taxing for the applause of the electorate and he calculates that the more he beats up on bankers and the rich, the louder the masses will cheer.” The answer to that is yes! What’s wrong with that? The Coalition came into office on a ticket that said bankers would pay for the damage they caused, and yet bankers have been among the principal beneficiaries of the ongoing raid on the public finances that the Coalition calls its “long-term economic plan”. In the face of dishonesty on that scale, Fraser should be more surprised that the North hasn’t invaded the Square Mile and strung anybody in a suit up on a lamppost – yet.

Next up, Fraser tries to attack Miliband’s proposed revival of a Kinnock plan for a state-run ‘British Investment Bank’ and two new high street bank chains. To this writer, the prospect of two new, state-run and regulated, banks is a brilliant idea! No more rip-off charges for services that should be free! Investment in growth, rather than short-term profit! And all run the way banks should be run – prudently and with the interests of the customer – rather than the shareholder – at heart. How can Fraser (bless ‘im) argue with that?

Argue he does. He writes: “As Simon Walker, head of the Institute of Directors, put it: ‘The last time the government told a bank what to do, Lloyds was ordered to sell branches to the Co-op’s Reverend Flowers. And we all know how that ended.’ Wrong. European regulators ordered the government (then principle shareholder in Lloyds) to sell the branches, and it happened on the Coalition government’s watch. In fact, George Osborne welcomed the deal. That’s an argument against Conservative mismanagement.

Fraser goes on to claim that Miliband doesn’t care how his bank project will work out – he just wants it done. He’s on an ideological crusade. Again, this provokes comparisons with the Tories that are (for the Tories) extremely uncomfortable. The Tories (and their little yellow Tory Democrat friends) have spent the last four years on an ideological crusade that has robbed the poorest people in the UK of almost everything they have, and are now starting to attack people who are better off (but still not posh enough) – they can hardly criticise Labour for having an ideology of its own.

The line about green policies which cost nine jobs for every four created – in Spain – is risible. Fraser has chosen a country where green policies have not worked well. How are they managing in Scandinavia?

Fraser says Labour’s energy price freeze “magically” makes good a 1983 pledge for everyone to afford adequate heat and light at home – without commenting on the fact that energy companies have been ripping us all off for many years and failing to invest in the future of power generation; they are an example of the worst kind of industrial privatisation.

Fraser says Labour has revived a 1983 demand for “a supply of appropriately qualified teachers” as though that is a bad idea (it isn’t. Bringing in unqualified people to act as teachers in Michael Gove’s silly ‘free schools’ sandpit was the bad idea). Note he says Labour wants “union-approved” qualified teachers – depending on mention of the unions to get a knee-jerk reaction from his readers, no doubt.

Fraser says Miliband attacks “predator” companies – moneylenders who offer short-term loans; people who make fixed-odds betting machines; landowners who stand accused of hoarding and thwarting housebuilding. “When Miliband talks about the future, he says very little about what he’d do with government. He talks about what he’d do to British business. All this amounts to a blitz of regulation, edicts and interference,” he writes.

This is to suggest that “regulation” is a dirty word – a synonym for “interference”. Let’s help Fraser out by suggesting a word he can use instead of “regulation” or “interference”.

That word is “help” – and it exemplifies what regulation is, in fact, about – helping companies to provide the best service possible, with the least possible corruption or profiteering, to ensure that customers get what they want and are happy to come back – boosting prosperity for everybody.

Substitute that word for the others and Fraser’s remaining rhetoric looks very different:

“All this amounts to a blitz of help” evokes the response, about time too!

“[Tristram] Hunt does not pretend that help at this level is being attempted in any free country” begs the question, why not?

While Fraser may have set out to write an assassination piece on Ed Miliband’s Labour, there can be no doubt that he ended up doing the exact opposite. It wasn’t his intention – look at his final few lines: “Miliband is bold enough to think that, in a country midway through the worst recovery in history, there may be a market for all this now. And most terrifyingly of all, he might be right.”

This botched attempt at scaremongering only exposes right-wing ideology for what it is: Out-argued, outclassed and badly out-of-step with the thoughts of the British people.

Follow me on Twitter: @MidWalesMike

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Food bank debate shows yet again the government’s argument has no substance

20 Friday Dec 2013

Posted by Mike Sivier in Bedroom Tax, Benefits, Children, Cost of living, Disability, Employment, Employment and Support Allowance, Health, People, Politics, Poverty, Powys, Tax, UK, unemployment, Universal Credit

≈ 39 Comments

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bedroom tax, benefit, Brecon and Radnorshire, child, Conservative, corporatist, cost of living, cut, David Cameron, debate, delay, Democrat, disappear, esther mcvey, exponential, finances, food bank, fuel, Gerald Kaufman, government, Iain Duncan Smith, increase, Jamie Reed, joseph rowntree foundation, Labour, laugh, left, Lib Dem, Liberal, Lord Freud, manage, Michael Gove, Mike Sivier, mikesivier, minister, New Life Church, Opposition, Paul Murphy, poor, poverty, price, ran, rise, Roger Williams, run, shadow, slash, social security, stagnant, stagnate, stagnating, Tories, Tory, turn tail, Universal Credit, Vox Political, wages, walk out, welfare, work


131219foodbanks

By now, we should all know how these Opposition Day debates go – but Wednesday’s discussion of food banks was one of the best examples I’ve heard.

The form goes like this: The relevant Labour shadow minister launches the debate, quoting the facts that support the argument (in this case, that the rise of food banks is a national disgrace and the Conservative-Liberal Democrat government’s policies have caused it), the government denies the charge – always with the same feeble excuses, backbenchers queue up to tell their own damning stories of what has happened to their constituents… and then the government wins the vote because its members have been whipped to vote against the motion, rather than because they believe it is wrong.

The food bank debate was textbook. Not only did it carry all these features, but:

  • The Secretary of State responsible, Iain Duncan Smith, declined to speak at all, but turned tail and ran after listening to only a small number of speakers.
  • Minister of State Esther McVey, who spoke in his place, delivered what Labour veteran Gerald Kaufman described as “one of the nastiest frontbench speeches I’ve heard in more than 43 years”.
  • As one story of government-created hardship followed another, Conservative MPs laughed. Clearly they are enjoying the suffering they are causing across the UK.

Each of these is a damning indictment of the depths to which the Coalition has driven British politics. But the debate is only half of this matter. Now it is our duty to publicise what happened. Many people may not know about this, or may not understand its significance.

They need to understand that food bank use has risen exponentially under David Cameron’s Conservative-led government, from 41,000 people in 2010 to half a million by April this year, one-third of whom were children. People are resorting to them because the cost of living is rising while wages have stagnated and social security benefit payments have been delayed or slashed. The government promised to publish a study on food banks in the summer of this year, but has delayed publication with no stated reason. The government department responsible – DEFRA – did not even put up a minister to speak in the debate.

Probably the most damning indictment was the vote. The Coalition government defeated a motion to bring forward measures that would reduce dependency on food banks. The obvious conclusion is that this government is happy to be pushing ordinary working and jobless people into crushing poverty – and intends to continue putting more and more people in the same situation for just as long as it possibly can.

We heard that:

  • People in Slough are fighting each other over discount fruit and vegetables in the local Tesco.
  • Food banks are visited by skilled workers who are unable to get jobs because of Coalition government policies.
  • Serious failures including administrative error in the benefit system mean one-fifth of the people visiting food banks are there because the Department for Work and Pensions has been unable to do its job properly.
  • The Bedroom Tax has hugely increased the number of people using food banks.
  • “The working poor are emerging as the Prime Minister’s legacy, as millions of people live in quiet crisis.” (Labour’s Jamie Reed).

In response, the Tories trotted out the old, old arguments, trying yet again to sell us the long-disproved claim that Labour forced the country into poverty by mismanaging the national finances. We heard, again, the turncoat Lord Freud’s claim that people were visiting food banks because the items there were free (ignoring the fact that everyone who visits a food bank is referred by a qualified organisation, and verified as being in crisis). We heard, again, the suggestion from our ignorant Education Secretary Michael Gove, that people are turning to food banks because they cannot manage their own finances (good management makes no difference if costs outweigh income; but then he clearly hasn’t been educated well enough to understand that).

Esther McVey’s speech showed clearly why she should have remained on breakfast television, where comparatively few people had to put up with her. She accused the previous Labour government of a “whirl of living beyond our means” that “had to come to a stop” without ever pausing to admit that it was Tory-voting bankers who had been living beyond their means, who caused the crash, and who are still living beyond their means today, because her corporatist (thank you, Zac Goldsmith) Conservative government has protected them.

She accused Labour of trying to keep food banks as “its little secret”, forcing Labour’s Jim Cunningham to remind us all that food banks were set up by churches to help refugees who were waiting for their asylum status to be confirmed – not as a support system for British citizens, as they have become under the Coalition’s failed regime.

She said the Coalition government was brought in to “solve the mess that Labour got us in”, which is not true – it was born from a backroom deal between two of the most unscrupulous party leaders of recent times, in order to ensure they and their friends could get their noses into the money trough (oh yes, there’s plenty of money around – but this government is keeping it away from you).

She said the Coalition had got more people into work than ever before – without commenting on the fact that the jobs are part-time, zero-hours, self-employed contracts that benefit the employers but exploit the workers and in fact propel them towards poverty.

She lied to Parliament, claiming that children are three times more likely to be in poverty if they are in a workless household. In fact, according to the Joseph Rowntree Foundation, in-work poverty has now outstripped that suffered by those in workless and retired households; children are more likely to be in poverty if their parents have jobs.

She attacked Labour for allowing five million people to be on out-of-work benefits, with two million children in workless households – but under her government the number of households suffering in-work poverty has risen to eight million (by 2008 standards), while workless or retired households in poverty have risen to total 6.3 million.

She claimed that 60,000 people were likely to use a food bank this year – but Labour’s Paul Murphy pointed out that 60,000 people will use food banks this year in Wales alone. The actual figure for the whole of the UK is 500,000.

She said the government had brought in Universal Credit to ensure that three million people become better-off. There’s just one problem with that system – it doesn’t work.

She said the Coalition’s tax cuts had given people an extra £700 per year, without recognising that the real-terms drop in wages and rise in the cost of living means people will be £1,600 a year worse-off when the next general election takes place, tax cuts included. She said stopping fuel price increases meant families were £300 better-off, which is nonsense. Families cannot become better off because something has not happened; it’s like saying I’m better off because the roof of my house hasn’t fallen in and squashed me.

Then, on top of all that, she had the nerve to tell the country, “Rewriting history doesn’t work.” If that is the case, then hers was one of the most pointless speeches in the history of Parliament.

Labour’s Jamie Reed had the best comment on the debate. He said: “The final verdict on any Government is based on how they treat the poorest in society during the hardest of times,” after pointing out that “the laughter from some of those on the Government benches … says more than words ever could.”

On a personal note, my own MP, Roger Williams, spoke about the food bank situation in Brecon and Radnorshire. It is gratifying that he is proud of the food bank set up by New Life Church, here in Llandrindod Wells – I well remember the telephone conversation I had with the organisers, in which I encouraged them to set it up. I am glad they took up the baton – and that he has appreciated their work.

Rather more worrying is the suggestion that he considers a possible new food bank in Brecon to be only the second in our constituency. There are food banks in many other towns, including Knighton, Ystradgynlais and Hay-on-Wye – with satellite facilities in smaller towns and villages. It is disturbing that the MP does not seem to know this.

Follow me on Twitter: @MidWalesMike

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