Tag Archive: liberal democrats

Jan 16 2012

“Nick Clegg plans more employee ownership”

In the news today: “Nick Clegg plans more employee ownership”, based on a speech to an audience in the City, citing John Lewis as a model of employee participation. John Lewis goes beyond simple employee share ownership, I own shares in Unilever – sadly this hasn’t enabled me to prevent them from cutting my pension. Channel 4’s Fact Check blog has confirmed that employee-ownership often makes for better companies.

Labour’s Shadow Business Secretary, Chuka Umunna response was:

…Mr Clegg was following Labour’s lead on responsible capitalism…

he should really check out the 2010 Liberal Democrat General Election Manifesto 2010, on p27 it says:

We believe that mutuals, co-operatives and social enterprises have an important role to play in the creation of a more balanced and mixed economy. Mutuals give people a proper stake in the places they work, spreading wealth through society, and bringing innovative and imaginative business ideas to bear on meeting local needs.

(source)

I’d argue that Labour was following the Liberal Democrats on this.

Chuka Umunna is also the chap, who said on twitter of Ed Miliband’s Radio 4 interview:

Very strong, assured performance from @Ed_Miliband on@BBCr4today this a.m

Funnily enough, Peter Hain said exactly the same thing:

V strong and assured performance by @Ed_Miliband against Humphreys @BBCr4today

Not strong evidence for original thinking.

Footnote

Screenshot here, if you don’t believe me.

Dec 10 2011

The Eurozone

There has been much excitement over David Cameron’s use of the veto at the recent European negotiations over rescuing the Eurozone. For people that don’t like Cameron for political reasons these are obviously the worst of times, for a large fraction of his Tory backbenchers these are the best of times.

The problem the Eurozone has is that when the system was set up some members lied through their teeth to meet the convergence criteria which allowed them entry and none of them where prepared to comply with the constraints on their fiscal policy (tax and spending) after the Eurozone had formed. Now, when times are difficult, these shortcomings have become very obvious. The solution towards which the rest of Europe are heading is to treat the Eurozone as a proper national economy with a European Central Bank which takes on the mantle of a national central bank and a degree of fiscal discipline not yet common across the member states. This would weaken the powers of the constituent nation states.

Sarkozy’s comments are quite clearly self-serving, he wishes to portray the UK veto as a result of of Cameron trying to protect the City because that is the French see the cause of the problem as the Anglo-Saxon economic model, not the Greek economic model. Angela Merkel’s position is a little more subtle: she would probably really welcome a UK that stood alongside Germany at the heart of Europe but she has her own problems with the German constitution which limit her flexibility in fully throwing her weight behind the Euro.

I have long been a pro-European and given the choice I would have taken the UK into the Euro at the very beginning, but that didn’t happen because John Major negotiated an opt-out and then Tony Blair and Gordon Brown (more the later than the former) kept us out of the Euro. These days I have my doubts, I can see a Euro zone with a core membership of nations I would trust to run a whelk store running quite nicely to the benefit of all concerned but that’s not the situation we are in now.

This attitude is reflected in the following passage in the Liberal Democrat 2010 manifesto:

The European Union has evolved significantly since the last public vote on membership over thirty years ago. Liberal Democrats therefore remain committed to an in/out referendum the next time a British government signs up for fundamental change in the relationship between the UK and the EU.

We believe that it is in Britain’s long-term interest to be part of the euro. But Britain should only join when the economic conditions are right, and in the present economic situation, they are not. Britain should join the euro only if that decision were supported by the people of Britain in a referendum.

The Guardian has leapt to it’s tired, old Nazi collaborator meme (here) in its description of Nick Clegg. To be fair there have been a lot of tired, old Nazi memes (appeasement being the favoured route of the right and some Lib Dems). It’s somewhat ironic that effectively the demand is that Nick Clegg must exercise a veto over David Cameron to not exercise a veto. For the enemies of the Liberal Democrats they will never be able to do any right in coalition: these enemies will laud the original policies of the Liberal Democrats (which often they did not vote for) and demand every one is implemented, and that the Coalition must fall if these demands are not met.

David Cameron has put himself into a tricky position in part through his own actions – withdrawing from political groupings in the EU, and reforming with only the most fringe characters, and in part through the party he inherits: John Major said he could here the sound of “flapping white coats” as one of them approached. Cameron did make the only decision he could: any treaty agreed would face parliament where it would lose because the Labour Party would side with a large Eurosceptic wing of the Tory party and even if it passed that hurdle it would fall at a referendum.

The Labour Party find themselves in an interesting position though, they cannot say they would support the current treaty proposal. Resorting only to the famous route directions: “If I was going there I wouldn’t start from here” but actually the relationship with Europe has changed little in the 18 months since the general election.

For other nations in Europe, to use the old breakfast analogy: the chicken has an interest, the pig is committed. All the other non-Eurozone countries are on some sort of track to join the Euro – we, uniquely, are not. This has been the case since before the election and it remains the core of our issue. Cameron’s posturing to satisfy his eurosceptic wing is not helpful, and a better statesman would perhaps have achieved some consensus outside the core Eurozone countries but fundamentally this is window dressing and the other members of the EU are already on a different track, they have been for years.

Sep 10 2011

Don’t call me scum*

Scum. Goodbye NHS. Goodbye Lib Dems. RT @skynewsbreak: MPs vote in favour of NHS reforms by a majority of 65

This was retweeted on timeline by a number of people on twitter on Wednesday last. As a Liberal Democrat this upsets me, I take it personally. According to Ben Goldacre, Evan Harris is okay, “good scum” presumably – the rest of us have obtained no exemption.

At roughly the same time my twitter feed was full of people decrying Ken Clarke for describing the rioters as a “feral underclass”, not so many were bothered about me being referred to as scum. Clarke had a point but he made it poorly. His point was that what we should be concerned that 75% of the rioters were already known to the police, our justice system had failed to rehabilitate them. It’s a useful example though: if you use language which offends you’ll find people will ignore your argument, assuming you simply don’t have one.

Interestingly Tony Blair was on the radio this morning, a man that lied in order to take us into war in Iraq and stood by as the country disintegrated, unwilling to persuade the US of the critical need for a post-war recovery plan. People on my timeline were upset but no one called him scum.

*It’s a reference to that fine film, Barb Wire.

Jul 23 2011

Book review: “The Orange Book: Reclaiming Liberalism”

Orange_BookI suspect most people will see me as an "Orange Book" Liberal Democrat, so I thought I should read the eponymous "The Orange Book: Reclaiming Liberalism" edited by Paul Marshall and David Laws.

The Orange Book was first published in 2004, when Charles Kennedy was leader of the Liberal Democrats. He contributes a foreword which is fully supportive of the Liberal inheritance but a little guarded on the policies proposed. The book was written at a time when Labour had been in government for 7 years, the start of the Iraq War was one year past and the economic outlook was fair.

The contributors include Nick Clegg (an MEP at the time), Vince Cable, David Laws, Ed Davey, Chris Huhne, Susan Kramer, Mark Oaten, Steve Webb, Jo Holland and Paul Marshall. The essays cover Liberalism, localism, Europe, global governance, economics and social justice, the environment, the health service, crime, family policy and pension reform.

The value of the essay over a news presentation of policy is that the proposals are preceded with some sort of background indicating how they were motivated; as a consequence I found The Orange Book rather more interesting reading than I was expecting.

The book starts with an essay by David Laws on the Liberal inheritance; decomposing it into the personal (to do with individual freedoms), political (devolution and Europe), economic (free trade and controlling state as well as private monopolies), social liberalism (welfare and health by consumer power). Along with Paul Marshall in the introduction he has some harsh words for socialism.

Ed Davey’s piece on localism and Nick Clegg’s on Europe fit well together: envisaging respectively dissociation of power from Westminster to local councils and Europe. I commented after the election that an accommodation with the Tories over Europe was not as surprising as many people had thought; the seeds of this can be seen in Nick Clegg’s chapter where he advocates abolition of the Common Agricultural Policy and repatriation of the powers that led to the social chapter and much of the regional support mechanism leaving behind only those components that provide inter-country benefits and support for regions whose governments could not provide support themselves. Somewhat less comfortable an idea for Tories will be more foreign and immigration and asylum policy being handled at the European level. Clegg also provides a catchy headline to keep the EU in proportion: it has a budget of 1% of European GDP and a civil service the size of Birmingham City Council.

Ed Davey’s piece on localism (devolving power to local councils) is well-established Liberal Democrat policy, and looks to more control by local democratic institutions rather than central government. A benefit of this approach is that services can be crafted to local needs rather than a central blueprint, furthermore it allows for more experimentation at smaller scale as to how to best deliver services. To enable this shift there needs to be improvement in the accountability of local councils, with the ending of local one-party states through fairer votes.

For reasons I can’t quite fathom the chapters on global governance, liberal economics and social justice, and the environment passed me by without making a great deal of impact.

Mark Oaten’s headline of Tough Liberalism regarding crime seems a little out of place since the emphasis of his piece is on education within the prison system and seeing the process of release of prisoners into the community at the end of their sentences as a “settlement” not “re-settlement” since many prisoners have never had settled lives to return to.

David Laws’ second chapter is on the health service: it outlines the flaws of the NHS, what the goals should be for the health service and proposes a solution. He sees a scheme of simply boosting funding through the current mechanism as being a short-term solution – easily susceptible to future unravelling. Perhaps it will be a surprise to many that he sees one of the problems with the NHS that its cost control is too effective, referencing the phenomenally high bed occupancy rate which leads to longer waiting times. His proposal is for a National Health Insurance Scheme with the NHS as one potential supplier of care with providers only able to offer non-clinical services as top-up to the national insurance specified clinical services. This scheme is based on those found in other European countries.

The chapter by Steve Webb and Jo Holland on family policy seems a little more interventionist than might be considered Liberal with an apparent enthusiasm for encouraging marriage rather than partnership. However, one welcome idea is to scrap a target for getting 70% of single parents into work. This attitude has always struck me as a bit jarring: that work is so important that the State will encourage you to work whilst paying someone else for the work of raising your children.

The book finishes with a chapter on pensions, a subject close to my heart at the moment. Liberals have been at the heart of pensions from their inception in the UK with Lloyd George and later in the Beveridge Report implemented by Labour in the post-war government. The problem with pensions is that since Beveridge, in the 1940s, things have changed a lot. The original pension scheme is pay-as-you-go: current payers of National Insurance pay for current claimants. No-one is contributing to their own state pension. At the time of its foundation in 1948 this scheme was relatively inexpensive (only £4billion per year in current terms), currently the state pension costs £40billion per year – due to a larger retired population relative to those working. For this reason the value of the state pension has fallen over the years since there is not the political will to lift current contributions to match the original commitment. Marshall proposes a compulsory funded pension to supplement the current system. The funding system at least forces the government to be explicit about their liabilities in pensions. Over the next 20 years or so the pensions problem will become more acute: currently the dependency ratio (the ratio of those in retirement to those in work) is 0.3 by 2030 it will be 0.4.

Regardless of whether you agree or disagree with the policies presented this is the type of policy discussion I expect to see taking place in my party. The "Orange Book" label feels more like an attempt to personalise a division between old-style Liberals and social democrats, and to cut off the Liberals from a Liberal past rather than any useful description of political thought. It also has the air of being more about Coalition with the Tories rather than any differences in policy.

May 15 2011

“Progressive Alliance”

I keep hearing about the “Progressive Alliance”, and it never fails to irritate me. In the UK “progressive” is taken to mean “Everyone except the Tories and UKIP1”. Progressivism is defined (in wikipedia) as:

…a political attitude favouring or advocating changes or reform through governmental action. Progressivism is often viewed in opposition to conservative or reactionary ideologies.

This seems to me a definition sufficiently broad as to be largely useless, Tories could claim the progressive mantle through any legislation they care to enact and liberals could lose it through their opposition to authoritarian measures such as the ID card scheme, and for economic liberalisation.

The problem I’m having here is that Labour only start getting interested in “progressive alliances” when they’ve lost an election, whilst in power they ignore other progressive parties. Labour will only form a “progressive alliance” if they are electorally forced to do so, and otherwise seek Liberal Democrat annihilation.

Since the General Election there’s been a great deal of effort spent by Labour in trying to split the party into Good Liberal Democrats (Social Democrats, who they wish to absorb) and Bad Liberal Democrats (Orange Bookers, who they think the Tories should absorb). The “progressive alliance” is part of this – we should not be playing to this narrative. The truth is that Labour and Tory only get into government when they’ve convinced the electorate that they are close enough to the Liberal Democrat centre ground so as not to be scary.

Ed Miliband can frequently be found “reaching out” to Liberal Democrats but this reaching out is solely about recruitment to the Labour Party and the planned extinction of the Liberal Democrats. I’m a pluralist, as such I value the existence of other political parties – but I see little sign of this respect for the existence of others in the Labour Party.

In opposition their key strategy has been to attack the Liberal Democrats and their policies, rather than the Tories, who they claim lead the Coalition. Labour consistently opposed the passing of the AV referendum bill. Indeed they spent more energy opposing the AV referendum bill than any other government measure2. Their campaign for the Yes vote was fatally flawed in that it was largely seen as a platform to attack Nick Clegg and the Liberal Democrats: every outing of “Labour Yes” involved a ritual statement of how venial the Liberal Democrats were and, if Ed Miliband was involved, a discussion as to why he would not share a platform with Nick Clegg. It looks like Labour are summing themselves up to oppose Lords’ reform as well – both this, and the AV campaign, are “progressive” goals.

There are a number of Liberal Democrats who are keen on the “progressive alliance”, and since I’m an open-minded sort of chap I’m assuming they’re not deranged, but can you tell me – why are you engaged in this? I don’t rule out discussions between our parties but those engaged in such discussion need to be clear what the benefit to us is, because at the moment all we’re getting is another forum in which Labour can abuse us and attempt to divide us3.

Footnotes

  1. Technically I should probably put the BNP in here but they’re not a serious political party.
  2. At this point Labour normally complain that the bill also contained “gerrymandering” measures regarding the work of the Boundary Commission. However, the current system gives them a 90 seat advantage for parity of votes with the Tories, so it’s substantially “gerrymandered” in Labours favour already. The chances are that boundary fiddling will do little to address this and really the only solution to such problems is to go for some form of proportional representation, neither of the two main parties has the honesty to recognise this.
  3. None of this is to say that the Tories are not trying to destroy us as well!

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