Labour’s rail plan – what we need, rather than what we want?

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British Rail, company, East Coast main line, fare, firm, franchise, invest, Labour, Mike Sivier, mikesivier, operator, price, private, public, quality, rail, re nationalisation, reliability, reliable, service, taxpayer, union, Vox Political

De-railed: After years of reliance on taxpayers’ money, it seems the ride may soon by over for some of the UK’s rail privateers [Image: PA].

The Labour Party seems to have a real problem with offering the public what the public has demanded.

Faced with demand for the railways to be renationalised, they seem set to announce a plan in which private firms compete with a public service for franchises.

The promise of privatisation had been that the new franchise-holders would keep prices down, and any investment should be made by the companies concerned.

In fact, fares and taxpayer investment have rocketed since the railways were privatised by the last full Conservative government in the early 1990s.

It seems that Labour’s plan, which may be announced next week (the party is being very cagey about it), will mean franchises are awarded based on “a pragmatic choice between the state and private sector based on price, reliability and quality of service” (according to a report in The Guardian).

This, we are told, “will provide a solution that allays commuter frustration, provides a fair deal for the taxpayer and does not amount to a return to British Rail”.

Such a decision will not only anger rail unions, Labour MPs who have been calling for renationalisation, and 70 per cent of the British public, but also the rail industry’s private operators, who say current bids for franchises must not be upset by allowing the state to join the process belatedly.

It has also been claimed that an extra risk would be imported onto the public sector balance sheet if a state-owned company won a franchise.

But this is narrow-minded thinking; the state currently spends much more on the railways than it did before they were privatised – we already have a large risk on the public balance sheet.

If these private firms had done their jobs properly, then the taxpayer would not be shouldering so many of their costs and – perhaps – the Labour Party would not be considering even the partial renationalisation that is on the table at the moment.

None of the UK’s current rail operators have kept their promises and after 20 years, it is far too late for them to bleat about the situation they have created.

It should also be noted that the public sector has been running the East Coast Main Line extremely successfully since the franchise run by National Express failed, making expansion of this management model highly attractive to Labour strategists who need to find ways of trimming the burden on the public purse.

As a group of prospective Labour MPs in marginal constituencies wrote in a letter to The Observer, it would mean “hundreds of millions currently lost in private profit would be available to fully fund a bold offer on rail fares”.

If so, it seems that this halfway-house plan may provide exactly what we need, even if it isn’t what anybody wants.

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The ‘Daily Mail’ Wales – about as real as Brigadoon

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AEG, Aggregate External Grant, Airport, assembly, Bristol, bus, Cardiff, Cardigan, Carwyn Jones, Ceredigion, Conservative, Daily Mail, education, English, funding, George Osborne, government, health, HS2, Independent, invest, Labour, language, Liberal Democrat, M4, Mike Sivier, mikesivier, NHS, orwell, people, Plaid Cymru, politics, Robert Hardman, school, sick, teach, Tories, Tory, Vox Political, Wales, Welsh

A tweet from a local (Conservative) Assembly member and county councillor has set me off to read a Daily Mail hack-job on the Welsh government and its policies. It makes for bleak reading but I have yet to find any resemblance to the Wales I know.

Has the author, Robert Hardman, ventured any further than the M4 corridor in his researches? It seems doubtful.

The first section attacks the Welsh Government’s purchase of Cardiff Airport for more than the expected value, plus extra millions for investment, saying Bristol Airport attracts six times the custom and the subsidised bus service from Cardiff is going empty.

Perhaps we should not be surprised by this attack. The Mail is a Tory-supporting rag and Tories no longer believe in investment (look at the way George Osborne cut capital projects to shreds, after he became Chancellor) – except when they do (HS2 is costing increasing millions every day, Who benefits, I wonder).

If Cardiff Airport was making losses, then it seems perfectly sensible for the administration to take it over and turn it around. But that won’t happen in a day, or even in a year (nationalisation happened at the end of March 2013) and it is unrealistic of Mr Hardman to pretend that it should.

I live in Mid Wales, where the only airport is fictional (Llandegley International) and the buses are full. We could do with a few more, in fact. Perhaps Mr Hardman could exert some influence on the Westminster government to provide a little more Aggregate External Grant (AEG – the way central government funds local government and regional assemblies) funding to help with that?

Next, Mr Hardman wheels out a few hard-done-by Welsh people, starting with an NHS nurse from Pembrokeshire who has had to pay for a hip operation because of an 18-month waiting list.

It is hard to combat that kind of criticism without knowing all the details. However, my own experience of the Welsh NHS is of being seen promptly for the pre-op and being able to choose the date and time of the operation. Perhaps Mr Hardman is cherry-picking special cases in order to make his point?

Next up: A group of West Wales parents who want their children taught in English as opposed to Welsh. They live in Cardigan, where education is run by Ceredigion County Council, whose main political groups are Plaid Cymru, the Independents, and the Liberal Democrats. Why is Mr Hardman blaming Labour, then?

He wants us to believe the problems are nothing to do with funding: “Wales gets the same subsidies as other parts of the UK which are worse off but receive a better service,” writes Mr Hardman.

He’s wrong, of course.

Take the NHS. Wales has had billions clawed back from its health service by greedy Tories in Westminster, in a transparent attempt to force standards down and direct blame at innocent parties. Mr Hardman’s article buys into that deceit.

When I discussed this with a Welsh NHS surgeon less than two weeks ago, he said there was a huge difference between the service being delivered and the way it is described by politicians, who he described as “snakes”. I cannot help but sympathise with the people who provide the service; their work is what I see.

That is not to say that there are no problems in the Welsh NHS! If I suggested that, I would be guilty of exactly the same kind of blanket behaviour as Mr Hardman. Of course there are problems.

But his use of the Mid-Staffs scandal to bolster his argument gives him away. Mid Staffs did not have a hugely inflated mortality rate; the statistics were manipulated to provide the Tory Health Secretary with the headline he wanted.

Moving on again, we come to a person with what seems to be a genuine grievance about mistreatment of his mother by Welsh hospital staff. Again, I cannot comment on the individual case because I don’t have the details.

All I can do is reiterate that it is wrong to claim that a service covering an entire country of the UK must be entirely abominable, on the basis of one case.

… and I see that Mr Hardman concedes this point, admitting that most NHS professionals are dedicated and conscientious. He blames the Labour-run Assembly Government.

But I have to come back to my main problem with this article: Mr Hardman has not described the Wales in which I live. Why, then, should I believe his criticism of the Labour administration?

The article concludes with a bizarre story about Year Six school pupils being indoctrinated with anti-English propaganda using two dolls. “What, I wonder, is the Welsh word for ‘Orwellian’?” carps Mr Hardman.

It’s the same as the English word, but Mr Hardman needs to revise his definitions. If he wants ‘Orwellian’, he need look no further than the English Tory Party’s ‘bingo and beer’ budget advert.

“The people of Wales deserve better,” Mr Hardman concludes. Yes they do.

Better than his article.

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Our entertainers give us facts while our politicians have nothing to say

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andrew neil, budget, celebrity, comedian, companies, company, contract, dirt, doctor, education, entertain, famous, filth, firm, government, GP, inspire, inspiring, Interest, invest, Kate Nash, Media, Michael Gove, Mike Sivier, mikesivier, National Health Service, NHS, Norman Lamont, politician, pressure, private, privatisation, privatise, ring fence, Rufus Hound, Sam Michell, stealth, surgeries, surgery, test, The News Quiz, The Powder Room, This Week, Vox Political

Speaking their mind: Rufus Hound and Kate Nash had the courage to voice their opinions about the NHS and education – but they don’t have enough influence to change government policy. What will it take to make that happen?

This could have been designed to follow my rant about politics being about perception: In response to a news report that NHS doctors’ surgeries have been found to be filthy, radio listeners were treated to a lengthy monologue on why the media are running down the health service to make it easier for the government to sell it out from under us.

This lesson was delivered, not by an eminent politician, but by the comedian Rufus Hound. He was speaking on Radio 4’s The News Quiz.

And he said: “Does this not scare anyone, though?

“There are a lot of stories coming out at the moment about all the ways that the NHS is failing. At the same time there is privatisation by stealth. Now, if you’re a conspiracy theorist, maybe those two things just resolve themselves. If you’re a normal person, you’ve got to become a conspiracy theorist, haven’t you?

“The number of contracts being put out to private companies has gone up through the roof. All of the pre-election promises of no privatisation of the NHS, and that the budget would be ring-fenced – it was ring-fenced but not in real terms, so it is a cut in the truest sense…

“The NHS is being sold out from under us, and yet all the stories that come out from the powerful oligarchs who run the media are either about how it’s failing and how much better off we’d be if it was privatised, or why privatisation can’t happen quickly enough for any one of a number of other reasons.

“The reason those surgeries are filthy is, there’s not enough investment to keep them clean and tidy. The argument isn’t ‘privatise’; the argument is ‘invest more’.

“In the Olympics, there was that big moment where they had ‘NHS’ and everybody stood up and applauded, and I think it was Norman Lamont who said, ‘The nearest thing the British people have to a religion is the NHS’ – and we’re just letting it go.

“People should be on the streets.

“And I realise that, for this to make the edit, it should have a punchline.”

He knew, you see. He knew that this great speech was in danger of being lost if it wasn’t sufficiently entertaining.

Thank goodness producer Sam Michell kept it in, but it should not be up to an entertainer like Rufus to tell us these things. Such matters are the province of politicians. The simple fact that our representatives aren’t “on the streets” with us about this says everything we need to know about them.

Here’s another example: Education. I was in the unfortunate position of having to sit through Andrew Neil’s This Week on Thursday evening. I’m not a fan of that show, but it meant I was lucky enough to see former pop starlet Kate Nash, there to talk about her film (The Powder Room) and modern manners, slip in a quick observation about education that undermines everything ever said by Michael ‘rote-learning-is-the-only-way’ Gove.

She said, “There are certain things we need to be addressing, that are being completely missed – and that’s to do with education being inspiring and interesting for young people, rather than just about purely passing tests and pressure.”

She hit the nail on the head without even looking; Gove couldn’t find it with a map and a guide.

Again, she is an entertainer; she should not be having to say these things, but we should be glad that she did. The moment was glossed over entirely in the BBC News website report of the debate. Perhaps we should be happy that they didn’t edit the comment out altogether (it starts around two minutes, 15 seconds into the video clip).

We are left with politicians who refuse to do their duty and defend our services from those who would destroy them, and celebrities who are left to pick up the slack – if, with a biased media, they can find a way to keep their words from ending up on the cutting-room floor.

What hope can we possibly have that anyone with any clout will defend our beloved, but beleaguered, taxpayer-funded services?

Worst of all is the fact that it falls to people like myself to even write about these matters, and we all have lives of our own. Rufus and Kate made their speeches on Thursday; it is now Sunday, and I could not have written this article any sooner.

We’ve all heard that a lie can travel around the world several times before the truth has got its boots on. This is because the liars own the media, and those of us who are interested in the truth have small voices, are easily ignored, or can be dismissed because “it’s only entertainment”.

At least high-profile figures have a better chance of being heard. There will be those telling Rufus and Kate and who knows who else to get back in their box and shut up, but I won’t be one of them. I think we should be “on the streets” with them.

I’m wondering if any more members of ‘The Great And The Good’ will have the bottle to speak their mind.

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Prepare to sift the substance from the sewage in the Chance(llo)r’s Autumn Statement

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[Picture: Vox Political reader Al Reading]

How long has it been since Labour was deemed the party with no policies and no direction? Now it seems the Conservatives have taken up this undesirable label and applied it to themselves (excuse the choice of words) liberally.

Labour’s stand on energy prices sent the Tories scurrying away to find an answer, after they finally realised that baldly claiming nothing could be done was not going to cut any ice.

When they finally came up with something, their answer was to “Cut the green crap” and reduce the environmental levy on energy firms – a u-turn within a u-turn for the party that once proclaimed to the nation, “Vote Blue – Go Green”.

This week they have also u-turned on cigarette packaging – for a second time within a matter of months. Before the summer, the Conservative vision was to safeguard children from smoking by removing packaging for cigarette packets. Then – after coincidentally hiring fag-company lobbyist Lynton Crosby to run their campaigns for them – they decided that the packaging could stay. Now – in the face of a possibly Lords rebellion – they are reversing their position yet again.

This is the context in which Boy Chancellor George Osborne will make his Autumn Statement – and he has already put himself on a sticky wicket before going in to bat.

Remember David Cameron’s massive error of judgement at the Lord Mayor’s banquet a few weeks ago, when he stood behind a gold-plated lectern that could easily be sold off or melted down to help pay of the interest on his government’s ever-increasing borrowing burden, and said austerity was here to stay?

It seems Gideon was eager to follow in his master’s footsteps, stumping up £10.2 MILLION (including VAT at the 20 per cent level that he imposed on us all in 2010) on new furnishings for his Whitehall HQ, from exclusive designers Panik, Ferrious and Senator. One Treasury insider, according to the Daily Mirror, wondered “why we couldn’t have just bought new furniture from Ikea”.

Good question! It is also one that is especially pertinent after it was revealed that Osborne has been calling for last-minute spending cuts from the Home Office and the departments of Justice, Defence, Business and Work and Pensions (yet again), because he will not be able to fund the £2 billion of giveaways announced during the conference season without them.

These include scrapping a rise in petrol duty of almost 2p per litre, free school meals for pupils aged five-to-seven and rewarding marriage in the tax system.

It seems clear that these measures were all unfunded when they were announced, putting the lie to Conservative claims that they have any kind of plan – and ruining their claim that Osborne’s schoolboy-economist austerity idiocy has done anything to improve the UK economy.

Like him or loathe him, Will Hutton in The Guardian had it right when he wrote: “The recovery is the result of the upward swing of the economic cycle finally asserting itself, aided by policies informed by the opposite of what Osborne purports to believe.”

Hutton went on to state that Osborne decided to “borrow from the Keynesian economic locker… never admitting the scale of the philosophic shift, and then claimed victory”. In other words, Osborne is the biggest hypocrite in Westminster (and that’s a huge achievement, considering the state of them all)!

Result: “The public is misinformed – told that austerity worked and, as importantly, the philosophy behind it works too… Thus the Conservative party can be protected from the awful truth that Thatcherism fails.”

Labour MP Michael Meacher is much more scathing (if such a thing is possible). In a Parliamentary debate, quoted in his blog, he told us: “We do have a recovery of sorts, but one that has been generated in exactly the wrong way. It has been generated by consumer borrowing and an incipient bubble, and it is not — I repeat, not — a real, sustainable recovery.”

In other words, the – as Hutton describes it – “eclectic and spatchcocked Keynesianism” employed by Osborne, while superficially useful in the short-term, will cause immense damage over a longer period because he doesn’t understand it and only used it in desperation.

Both Hutton and Meacher agree that a sustainable recovery can only come from what Meacher describes as “rising investment, increasing productivity, growing wages and healthy exports”, none of which are supported by Osborne’s current behaviour.

And yet, according to the Daily Telegraph, Osborne will fulfil another of this blog’s long-standing prophecies on Thursday by telling us all that “Britain can no longer afford the welfare state”.

From a member of the most profligate snout-in-trough overspenders ever to worm their way into public office and then inflict a harm-the-defenceless agenda on the nation, that will be the biggest lie of all.

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Profiteering energy firms would be stupid to believe they can hold Labour to ransom

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BBC, blackout, British Gas, California, Centrica, company, cost of living, E.on, economy, Ed Miliband, EDF, energy, Energy UK, failing, firm, freeze, government, Guardian, Income Tax, invest, John Lewis, market, Mike Sivier, mikesivier, nationalise, npower, people, politics, power station, price, profit, ransom, reset, Scottish Power, SSE, tax, Treasury, Vox Political, workers co-operative

Miliband’s cost-of-living crusade starts here. [Picture: Metro – from an article in August headlined ‘Energy company profits rise 74 per cent in 48 months’]

The UK’s private energy companies will be playing a very dangerous game if they think they can call Ed Miliband’s bluff on price-freezing.

According to The Guardian, Mr Miliband’s announcement that energy prices will be frozen for 20 months under a Labour government has sparked a chorus of protest from the affected firms.

In the first skirmish in the new political battle over the cost of living in the UK, Mr Miliband wants to “reset” what he sees as a “failing” energy market in which customers had paid £3.9 billion more than necessary since 2010. The measure would save families an average of £120 and businesses £1,800.

Energy firms say it would lead to blackouts similar to those seen in California. They say it will stall investment in new power stations.

Energy UK, which represents the largely foreign-owned energy firms, said: “It will… freeze the money to build new power stations, freeze the jobs of 600,000 people dependent on energy industry and [make] the prospect of energy shortages a reality.”

Here’s Centrica: “If prices were to be controlled against a backdrop of rising costs, it would simply not be economically viable for Centrica or indeed any other energy supplier to continue to operate and far less to meet their sizeable investment challenges the industry is facing.”

And Ian Peters, head of residential energy at British Gas, said: “If we have no ability to control what what we do in retail prices and wholesale prices suddenly go up within a single year that will threaten energy security.”

Labour has said the claims were “patently absurd” and “nonsense” put about by the large energy companies.

Mr Miliband said: “There’s a crisis of confidence in the system. It’s time we fixed it and they can either choose to be part of the problem or part of the solution. I hope they choose to be part of the solution.”

Suppliers say prices have gone up to cover their rising environmental and social obligations and in response to commodity price rises – sums paid on wholesale markets. So let’s examine the profits made by the “big six” – British Gas, EDF, E.On, npower, Scottish Power and SSE – over the last few years (figures courtesy of the BBC): In 2009, £2.15 billion. In 2010, £2.22 billion. 2011 – £3.87 billion (a massive hike of £1,870,000,000 in a single year). And in 2012 – £3.74 billion. That’s £11.98 billion in profits over four years – a huge and unwarranted amount in these times of supposed austerity.

And let’s not forget – this is pure profit. None of that money will have been reinvested into the companies. It goes to the shareholders.

It is while sitting on such huge amounts that these companies are trying to tell us they won’t be able to afford theinvestments to which they have signed up; that they won’t be able to increase employee pay. And it is while sitting on this massive pile of cash that they are threatening us with blackouts if they aren’t allowed to continue demanding huge price rises.

Well, it won’t wash.

Doesn’t it seem more likely that, faced with threatened blackouts, Mr Miliband will choose to re-nationalise the energy firms, rather than back down?

After all, they would be reneging on their contract to provide energy to the United Kingdom. This could be just what Mr Miliband needs to bring them back under State control, where energy generation and distribution belongs. And it would show he is serious about having the strength to “stand up to powerful vested interests”.

Naysayers may point out that this would only put him back in a position of being at the unions’ mercy, instead of under the thumb of big business, but this isn’t true either – the Tories restricted the unions’ power massively back in the 1980s.

Besides, new structures have come into being since then. What if the energy companies were re-constituted as Nationalised Workers’ Co-operatives? This would entail every employee receiving a percentage of any profits – possibly along the lines of the successful John Lewis model – with the remainder ploughed back into the Treasury to reduce income tax bills.

Such an arrangement should silence any dissent among workers as they would receive two slices of the pie – a profit-driven bonus and a tax cut – while everyone else has lower energy bills, together with the tax cut.

If it were proven to be successful, then employees of the other privatised utilities could soon be queueing up to have their companies re-nationalised as well.

Lib Dem denial machine moves into full swing

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Act, Andrew Lansley, BBC, benefit, benefits, bill, business, charity, Coalition, Conservative, Danny Alexander, debate, debt, Democrat, Department for Work and Pensions, disability, disabled, DWP, economy, Employment and Support Allowance, ESA, government, Granny Tax, Health and Social Care, income, Income Tax, invest, Jobseeker's Allowance, Lib Dem, Liberal, Liberal Democrat, low, mandatory, market, middle, Mike Sivier, mikesivier, NHS, Parliament, pension, people, Personal Allowance, politics, privatisation, relief, SI 257, sick, social security, statutory instrument, tax, Today, Tories, Tory, Tycoon Tax, unemployment, vote, Vox Political, welfare

Some Tory drone – I think his name was ‘David Cameron’ released an image earlier today, claiming 24 million people were £600 better-off as a result of this month’s changes. This is what the poster SHOULD have said.

We have all seen the Liberal Democrat Party losing its grip on reality during its years in Coalition with the Conservatives.

One of my favourite examples of this was the claim that the Lib Dems had mitigated the hated Health and Social Care Bill (as it was then) – Andrew Lansley’s NHS privatisation effort – to ensure that rampant privatisation would not take place, and that they could therefore vote in favour of it with a clear conscience.

Earlier this year, of course, we all learned about SI 257, the statutory instrument that would have imposed mandatory marketisation on nearly every NHS service, without the requirement of a Parliamentary debate or vote. Clearly the Lib Dems had been hoodwinked. There was a massive public campaign against this betrayal and SI 257 was withdrawn, but only to be replaced by something that was so vaguely-worded that it is almost as bad (possibly worse, in fact).

Now, they’re crowing about the fact that the Personal Allowance – the amount a person can earn before paying Income Tax – has risen to £9,440. Apparently this means people on low incomes are now £600 per year better off than they were at the time of the last general election, in 2010.

But wait! What about all the benefit changes – by which I mean cuts – that came in at the same time? We’ve all seen the figures that show they will make low-earners £891 per year WORSE-off.

Put those together and, no matter which way you slice it, people earning less than £9,440 will be up to £291 worse off than in 2010.

Meanwhile, the top rate of Income Tax has fallen from 50p in the pound to 45p, for people with incomes of more than £150,000 – that means people earning more than £1 million will be £100,000 better-off.

Danny Alexander was on Radio 4’s Today programme, trying to talk up the changes. He said the Coalition “is working hard to help those on low and middle incomes” – into poverty?

Other changes mean the amount pensioners can take home every year will no longer rise with inflation but has been frozen, meaning they will be worse-off this year. It has been dubbed the “Granny Tax”. They do get a rise in the state pension, by 2.5 per cent – but that only equals £110 per week.

And Mr Alexander was also keen to talk about the so-called “Tycoon Tax”, which imposes a limit on the amount of tax relief people can claim by investing in business or donating to charity.

This – again – avoids the possible consequences of such a measure. How many businesses and charities will fall into difficulty because benefactors no longer have the financial incentive to help them out? I’m not sure, so I am unwilling to condemn it immediately – but I fear the worst.

One conclusion we can draw from this – and previous changes – is the obvious:

Liberal Democrats ignore their mistakes.

The denial machine is not only in full swing – it’s in danger of overheating.