Dilemma for private bosses as Labour unveils transparency plan for public service work

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An end to the corporate backhander? [Picture: This Is Money}

A Labour government would make private companies who provide services at the taxpayers’ expense obey public sector transparency rules, it has been revealed.

The change means firms and charities that sell services to the state – for example, all the private companies now working in the NHS – would lose their right to commercial confidentiality.

The Freedom of Information Act would be extended to cover them and they would have to reveal their commercial secrets if a FoI request required them to do so.

If enacted, this is likely to be more effective in creating transparency of lobbying than the Parliamentary Bill of the same name that is currently working its way through Westminster.

The policy was revealed in a Sunday Times article which is paywall protected. Labour has yet to release an announcement on its website.

The article quotes shadow justice secretary Sadiq Khan, who said: “More and more of our public services are being delivered by private companies and charities, out of reach of freedom of information. We must demand the same openness from them as we expect from government. It’s not on to let these organisations hide behind a veil of secrecy.”

Bravo.

The new policy comes after a 10-minute rule motion by Labour’s Grahame Morris began its journey through Parliament earlier this month. Such motions rarely get very far because the government of the day usually opposes them in the later stages and there is often too little time to complete the debate.

But these bills stimulate publicity for their cause, and it seems clear that the Labour leadership has taken this particular cause on board.

So it should – concerns are high that unfair advantages are being handed to, for example, the private healthcare companies, who are then able to hide the facts behind the veil of commercial confidentiality. Why should they be allowed to do this when they are providing a public service, funded by the citizens of the UK?

Existing NHS operators do not have the advantage of commercial confidentiality and must provide details of the way they operate if a FoI request is submitted to them. This makes them vulnerable during the bidding process for NHS contracts, as private operators can ask about the current providers’ operations and then undercut them to get the work.

Then there’s the so-called “revolving doors” practice, in which government advisors move to lucrative contracts in the private sector, often after providing advice that changes government policy in favour of their new employer. Mr Morris’s motion noted that “at least five former advisors to the Prime Minister and the Chancellor of the Exchequer are now working for lobbying firms with private healthcare clients”.

This is a corrupt practice – the firms gain an unfair advantage because they have, if you like, a spy in government manipulating affairs to their advantage. Nothing is done about this at the moment, nor will the Labour proposal change that situation – but we will all be able to see who the spies are.

It would probably be advisable for a future Labour government to put powers in place to reverse any change in the law due to corrupt advice intended to engineer a commercial advantage to a private company. Restricting the movement of government employees to other jobs would be problematic, but if it is known that any changes they effect will be reversed after such a move, then the exercise would become pointless.

Companies would not be able to pay a person to influence the government while they remained in the taxpayers’ employ, as this would be a clear case of bribery and corruption.

A previous VP article on this subject mentioned the idea of the level playing field – and Labour is to be praised for producing policies intended to restore that principle to government in the face of Conservative and Liberal Democrat efforts to skew the field in favour of their corporate chums.

And the corporates themselves? Well, their bosses are likely to be furious and it’s possible that all kinds of threats will come in Labour’s direction.

That’s fine. A Labour government can take any such complaint in stride by launching a programme to revise government tax strategy with regard to corporates, and bring any complaining company to the top of the list.

The Queen’s Speech (translated) – brief words signifying so much harm

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A true pro: It is a testament to the Queen’s professionalism that she is able to get through her speech at the annual opening of Parliament without either laughing at the stupidities or choking in horror at the implied threats to her citizens.

Today the Queen made her speech at the official opening of Parliament. Her words were, as always, written by the government of the day, and therefore it seems appropriate to provide a translation, as follows:

“My government’s legislative programme will continue to focus on building a stronger economy so that the United Kingdom can compete and succeed in the world.” Focus on it, but do nothing about it.

“It will also work to promote a fairer society that rewards people who work hard.” If you haven’t got a job, you’re shafted.

“My government’s first priority is to strengthen Britain’s economic competitiveness. To this end, it will support the growth of the private sector and the creation of more jobs and opportunities.” There is no intention to take any action in this regard; the government will simply applaud actions taken by others.

“My ministers will continue to prioritise measures that reduce the deficit – ensuring interest rates are kept low for homeowners and businesses.” Interest rates are nothing to do with the government. It is easy to make promises when no action is required.

“My government is committed to building an economy where people who work hard are properly rewarded. It will therefore continue to reform the benefits system, helping people move from welfare to work.” My government is committed to building a low-wage economy where people have to work hard simply to keep what they’ve got. It will therefore continue to erode the benefits system, forcing people to move from welfare to destitution as a warning to those who’ve got jobs, that this will happen to them if they make a fuss.

“Measures will be brought forward to introduce a new employment allowance to support jobs and help small businesses.” A bung for our friends.

“A bill will be introduced to reduce the burden of excessive regulation on businesses. A further bill will make it easier for businesses to protect their intellectual property.” Deregulation worked so well with the banks in 2007, we thought we’d give other businesses a chance to ruin the economy. And it’s not enough that Facebook now owns everybody’s photographs – corporations want everything else as well.

“A draft bill will be published establishing a simple set of consumer rights to promote competitive markets and growth.” The rights of the consumer will be restricted to what we say they’re allowed, to protect corporate freedoms.

“My government will introduce a bill that closes the Audit Commission.” We don’t want the public to know the facts about our spending and where it goes (into our pockets).

“My government will continue to invest in infrastructure to deliver jobs and growth for the economy.” But we’re not saying where the money will go (into our pockets).

“Legislation will be introduced to enable the building of the High Speed Two railway line, providing further opportunities for economic growth in many of Britain’s cities.” Future economic growth, of course – we won’t see the benefit for many, many years.

“My government will continue with legislation to update energy infrastructure and to improve the water industry.” At huge cost to everybody who has to pay the bills.

“My government is committed to a fairer society where aspiration and responsibility are rewarded.” This is meaningless.

“To make sure that every child has the best start in life, regardless of background, further measures will be taken to improve the quality of education for young people.” This is meaningless.

“Plans will be developed to help working parents with childcare, increasing its availability and helping with its cost.” Private childcare organisations, starting cheaply but costing more as they get a grip on parents.

“My government will also take forward plans for a new national curriculum, a world-class exam system and greater flexibility in pay for teachers.” We’re going to stamp on teachers hard. And the new national curriculum means nobody from state education will be able to compete with our children at Eton.

“My government will also take steps to ensure that it becomes typical for those leaving school to start a traineeship or an apprenticeship, or to go to university.” We’ll shoehorn the state-school mob into something under threat of destitution, and save university for people who can pay for it (like us).

“New arrangements will be put in place to help more people own their own home, with government support provided for mortgages and deposits.” More second homes for Tory voters, as set out in the Chancellor’s Budget speech in March.

“My government is committed to supporting people who have saved for retirement.” If they have savings, they won’t need the national pension and can give it back, like Iain Duncan Smith suggested.

“Legislation will be introduced to reform the way long-term care is paid for, to ensure the elderly do not have to sell their homes to meet their care bills.” They can die there instead.

“My government will bring forward legislation to create a simpler state pension system that encourages saving and provides more help to those who have spent years caring for children.” It’ll encourage saving because it won’t be enough; and carers can have the kids taken away from them.

“Legislation will be introduced to ensure sufferers of a certain asbestos-related cancer receive payments where no liable employer or insurer can be traced.” Otherwise we’ll get the blame for abandoning them.

“My government will bring forward a bill that further reforms Britain’s immigration system. The bill will ensure that this country attracts people who will contribute and deters those who will not.” We’re scared that UKIP is taking our voters away.

“My government will continue to reduce crime and protect national security.” We will privatise the police, MI5 and MI6.

“Legislation will be introduced to reform the way in which offenders are rehabilitated in England and Wales.” If you thought our prisons were schools for criminals before, we’re turning them into universities.

“Legislation will be brought forward to introduce new powers to tackle anti-social behaviour, cut crime and further reform the police.” We will privatise the police and introduce curfews.

“In relation to the problem of matching internet protocol addresses, my government will bring forward proposals to enable the protection of the public and the investigation of crime in cyberspace.” We want to know how it works so we can make money off the internet.

“Measures will be brought forward to improve the way this country procures defence equipment, as well as strengthening the reserve forces.” We’ll buy the cheapest equipment we can find and ask the reservists to do it for no pay.

“My ministers will continue to work in co-operation with the devolved administrations.” Wales, Scotland and Northern Ireland will get even less cash.

“A bill will be introduced to give effect to a number of institutional improvements in Northern Ireland.” It’s too peaceful over there and we need something to distract the plebs from the mess we’re making in the rest of the country.

“Draft legislation will be published concerning the electoral arrangements for the National Assembly for Wales.” If we give the sheep the vote, they might vote Tory.

“My government will continue to make the case for Scotland to remain part of the United Kingdom.” We want their money; we want their oil.

“Members of the House of Commons, estimates for the public services will be laid before you.” Prior to privatisation.

“My government will work to prevent conflict and reduce terrorism. It will support countries in transition in the Middle East and north Africa, and the opening of a peace process in Afghanistan.” We want their money; we want their oil.

“My government will work to prevent sexual violence in conflict worldwide.” We can’t even stop it here.

“My government will ensure the security, good governance and development of the overseas territories, including by protecting the Falkland Islanders’ and Gibraltarians’ right to determine their political futures.” They’re strategically important so we’ll rattle the sabre for them.

“In assuming the presidency of the G8, my government will promote economic growth, support free trade, tackle tax evasion, encourage greater transparency and accountability while continuing to make progress in tackling climate change.” We’ll blame the other nations when none of these things happen.

“Other measures will be laid before you.”

That’s not a promise; it’s a threat.

Why do we tolerate ‘slavery’ schemes that rely on secrecy?

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Cait Reilly took the government to court after she was forced to stop volunteering at a local museum – with a view to getting a job as a curator – and go to work in Poundland for nothing. The government said the scheme was voluntary but – and the clue’s in the title, ‘Mandatory Work Activity’ – this is not accurate. Those on the scheme now could be stripped of their benefit for three years if they refuse to take part, so one wonders what would happen if Ms Reilly or someone like her tried a similar court action today.

It’s like the NHS privatisation all over again.This time, the Department for Work and Pensions is refusing to publish the names of charities and businesses where unemployed people – in their tens of thousands – are being forced to work for no pay, for periods of four weeks at a time.

Readers with long memories will recall that, earlier in the year, the Department of Health refused to honour a ruling by the Information Commissioner that it should publish a risk assessment on the effects of the then-Health and Social Care Bill.

The argument was that publication would discourage the civil servants who write these reports from including the more controversial likely effects from future risk assessments on other subjects. The reason that the public accepts as true is that the scale of the changes, the waste of public money in achieving them, and the amount of profit to be made by private ‘healthcare’ companies from UK citizens’ misery would be unacceptable to the British people if they knew about it.

Some details leaked out anyway and, now we are experiencing those effects, we are able to see just how accurate those predictions were (and in many cases, how far short of the mark they fell).

Both the requirement that the DoH publish its risk assessment and the demand that the DWP publish its list of businesses and charities involved in ‘Workfare’ follow Freedom of Information requests made to the government.

So much for open government. It seems that such requests are a waste of time when the government in power is determined to operate in secrecy.

Note that the government’s line on organisations taking part in Workfare is now that they “tend to be charitable organisations”. Previously we were led to believe they were all organisations that provide “social benefit”. It seems, once again, this government has lied to us (and not very well). How many profit-making businesses are involved, then, and what are their names?

The real problem with this one is that the ConDem Coalition seems to be childishly ignoring the facts of the matter, which are (i) Workfare doesn’t work, and (ii) Workfare is unpopular in the extreme.

The government’s own research shows that the scheme does not help unemployed people to get a job. Once they have finished their four weeks of work – for whichever unnameable company or, God forgive them, charity – they get thrown back onto Jobseekers’ Allowance and somebody else is picked up to work for nothing. Workfare has no effect on getting people off benefits in the long term.

In fact, the effect of Workfare on the economy is harmful. I commented yesterday on figures showing that, after Job Centre Plus staff started putting people into jobs instead of any of the government’s several work placement programmes, unemployment has dropped and productivity has gone up. I think this may be a temporary blip, with more jobs available because of special events over the summer like the Olympics, but the statistics are revealing.

The government has ploughed on, with changes in the rules a fortnight ago which mean that unemployed people who refuse to take the unpaid placements can have their JSA benefit stripped from them for up to three years.

Note (again) that one of the reasons Cait Reilly lost her court case against the government over Workfare was that the DWP claimed incessantly that the scheme was voluntary and she had the opportunity not to take it up. I wonder what would happen if someone like her took the scheme to court now?

Whatever happens next, it seems the names of the organisations taking part in Workfare (or Mandatory Work Activity, to give it its current official title) will continue to be secret. The reason? The DWP has said the programme would “collapse” if the names were made public, due to the likelihood of protests against the organisations involved.

Doesn’t that give anyone in the DWP a clue?

These schemes are totally unsuccessful and utterly unpopular with the British public.

So why persist?

I think it’s an ideological programme. The government is complaining that the benefits bill is too high and needs to be shrunk, but no employer in his or her right mind would think of paying the full amount for an employee when they can get them on Workfare instead, and have the taxpayer foot the bill.

Workfare is therefore a way of ensuring that the current lack of full-time jobs continues into the future – thereby allowing the government to use it – and the consequent, high benefits bill – as justification for its welfare benefit cuts.

Insidious.