Posts Tagged ‘National Enterprise Boards’

Now Tories Troubled by Split

February 21, 2019

Yesterday, a group of three MPs, Sarah Wollaston, Heidi Allen and Anna Soubry, defected from the Tory party to join the Independent corporation, that had split from Labour.

At their press conference they gave three reasons why they had left. Heidi Allen said she was disgusted with the suffering the party had inflicted and its lack of benevolence. For Sarah Wollaston, it was the harm the Tories had done to the manufacturing industry. And for Anna Soubry it was the way her former party had wrecked the country with their massively inept handling of Brexit. Or it might have been Wollaston, who was most concerned about Brexit, and Soubry about the destruction of Britain’s manufacturing sector under the Tories. This is how the reasons for their departure was presented on one of the short videos on YouTube, although I got the impression from listening to Heidi Allen speaking on the 45 minute long video of their press conference put out by Channel 4 News that she was also concerned about Brexit and the attack on manufacturing, as she also ran her own manufacturing firm.

The Tories, who had previously been gleefully exploiting Chuka Umunna and company’s split from the Labour party, were left outraged in their turn. Hunt gave a speech saying how much he regretted the departure of such valued colleagues. Other Tory functionaries demanded that the Splitters should now call a bye-election. Just like the real supporters and activists in the Labour party have been demanding Umunna and his coteries of bitter Blairites do.

I don’t know how sincere Allen and her two colleagues are about the suffering caused by the Tory party. She made a number of speeches saying how upset she was by the suffering caused by her former party’s wretched welfare reforms, but voted for them all the same. So in her case it was, as Mike pointed out, a case of crocodile tears. She may be genuine, and that after years of dutifully following the party line her conscience has won at last. Or it may simply be that, like some other Tories, she’s just worried that the electorate will punish the Tories for the misery they’ve inflicted at the next election.

I think the three’s statement that they’re concerned about British manufacturing and the devastating effects of Brexit are rather more genuine. Margaret Thatcher and Blair in his turn ignored the manufacturing sector. One members of Thatcher’s cabinet, who was the only member in it from that sector of the economy, described how he couldn’t get Thatcher to understand that a strong pound would harm British manufacturing by making our products more expensive. She also uncritically accepted as an article of her neoliberal, free market dogma, that failing firms and industries should be allowed to go under, and should not be given government assistance. Which contrasted with Labour’s promotion of the National Enterprise Boards and state assistance for British industry, where the government would help firms acquire plant and equipment.

And as a good Thatcherite, Blair also adopted her destructive attitude to British industry. He was also quite happy to see British manufacturing collapse. Instead, its place at the heart of the British economy would be taken by the financial sector and the service industries. Deanne Julius, a leading official at the Bank of England, recruited from America, actually said that Britain should give up its manufacturing industry, and simply concentrate on the service industries.

The result has been that vast swathes of traditional British industry have been destroyed by Thatcherism, including mining. Which was done simply to destroy the miners’ union, so they could never overthrow a Tory government as they had Heath’s. However, as Ha Joon-Chang has shown in his book, 23 Things They Don’t Tell You About Capitalism, manufacturing is still an extremely important part of the British economy. It looks weak simply because it hasn’t expanded as much as the other sectors of the British economy. But if it went, the British economy would collapse completely.

As for Brexit, the past few weeks have seen company after company leave the UK because of the Tory party’s incompetence. They’re leaving because we haven’t reached a trade agreement with EU, and so the tariff barriers that will be erected after Britain leaves will make it difficult for them to sell their products after our departure. The latest firm to announce it was closing down its British plant has been Honda in Swindon. When this goes, so do 3,500 jobs.

But I doubt that this will concern those in the Tory party demanding a hard Brexit, like the odious Jacob Rees-Mogg. The financial sector has also been hit, with various banks and international financial regulators announcing that they will leave Britain for Dublin, Paris and the Netherlands. But this doesn’t seem to dismay Mogg and his comrades. They seem to be all financiers, who make their money through investing in companies around the world. And so the destruction of the British manufacturing sector simply doesn’t affect them. They’ll get their money anyway.

The Tory party is seriously split over Brexit. It was to call the Eurosceptics’ bluff that Cameron called the referendum in the first place. He was so confident that people would vote ‘remain’ that he didn’t do any proper campaigning. The result was that he was astonished when the ‘Leave’ vote prevailed. But I gather that the Tories were on the edge of splitting years before, when Tony Blair was in power. Blair stole their policies, and indeed moved further right than the Tories had dared. The party was also split between the Tory paternalists and Thatcherites, and the rural sector, which believed that British agriculture and country communities were being ignored. I’ve heard it said that if Brown had won the 2010 election, the Tories would have collapsed completely, and would have tried to rebrand themselves instead as the English Nationalists. This has the ring of truth, as I do remember one opinion piece in the Heil actually recommending that the party thus rename itself.

I hope that the departure of Allen, Wollaston and Soubry will spark a series of other defections from the Tories and bring about the party’s much-need demise. It’s brought nothing but misery and poverty to Britain’s working people since Thatcher came to power in 1979. And even if the party doesn’t collapse completely, I want there to be so many defections that at the least it causes the collapse of May’s vile, malignant, destructive government.