Posts Tagged ‘Private Finance Initiative’

Private Eye on ChangeUK MP Stephen Dorrell’s Role in Disastrous and Exploitative Tory Policies

May 1, 2019

This fortnight’s Private Eye, for 3rd – 16th May 2019 has an article about the major role the former Tory MP Stephen Dorrell played in creating and promoting the disastrous Tory policies of rail privatisation, the Private Finance Initiative and the privatisation of the NHS. These are policies which the magazine speculates will make him unpalatable to those centrist Labour voters that ChangeUK hopes to appeal to. The article runs

The adoption of former Tory health secretary Stephen Dorrell as a Change UK candidate in the European elections may be a Tory too far for ex-Labour voters wanting to switch to the centrist cause.

Dorrell’s Tory CV harks all the way back to the dying days of the Thatcher era when he was a whip – a supposedly “wet” Tory helping push through her ultra “dry” policies.

Under John Major, he became a Treasury minister, active in the Rail Privatisation Group behind the sale of the railways. Against expert advice, Dorrell was one who pushed for separation of responsibility between trains and track – with dire results. Railtrack, the privatised track operator, eventually collapsed after lethal crashes caused by poor maintenance.

As health secretary it was Dorrell who began the 20-year disaster of the private finance initiative (PFI) in the NHS. “I am a strong supporter of the PFI,” he told the Commons, calling PFI “the best opportunity that we have had in the history of the NHS” to “deliver the best healthcare.” It wasn’t. And it didn’t.

Dorrell launched a failed bid for the party leadership in 1997 and never held a ministerial job again. Later, under the coalition, he was seen as a critic of Andrew lansley’s NHS reforms – but not too loud a critic.

Having left parliament in 2015, he has kept up his interest in giving corporations access to the NHS, chairing Public Policy Projects, a subscription-based outfit “focused on the big issues in health and social care”. His group arranges breakfasts and receptions for businesses to meet political and NHS insiders. Recent events have included meals iwth health secretary Matt Hancock, housing and communities secretary James Brokenshire, Treasury committee chair Nicky Morgan and top NHS officials.

Dorrell has also worked as a healthcare and public services adviser to KPMG since 2014; and last year became an “associate” of Cratus Communications, a lobbyist for developers. If Change UK really wants to fix the UK’s “broken politics”, it may have to cast its net a little wider. (P. 7).

These are all very good reasons why genuine Labour voters shouldn’t vote for him. But they’re also reasons why traditional Labour voters shouldn’t vote for any of the former Labour MPs in Change UK. All of the so-called Labour ‘centrists’ are really nothing of the sort. They’re red Tories, as fanatically keen on privatisation and the dismantlement of the NHS for the profit of private healthcare firms as the Conservatives. Blair was responsible for the introduction of much of the legislation allowing the NHS to purchase services from private healthcare providers, including the operation of the health centres and polyclinics, which he hoped would be run by private firms. His health secretary, Alan Milburn, wished the NHS to become simply a kitemark for services provided by private healthcare firms.

The real centrists and moderates are Jeremy Corbyn and his supporters, who wish to renationalise the NHS, the rail companies, water and part of the national grid. These are policies both the Tories, Change UK and the Labour ‘centrists’ loathe and detest. Just as they loathe and detest his plans to renew and strengthen the welfare state and give workers back proper employment rights and powerful trade unions able to defend them.

As Mike, Zelo Street and the various other left-wing bloggers have described on their sites, Change UK and its mixture of former Tory and Blairite Labour MPs shows that there really isn’t any difference between the two.

Private Eye’s article is thus a very good reason not to vote for Dorrell personally nor his wretched party in general. And the solid support for Blair’s own privatisation and destruction of the welfare state by Change UK’s former Labour MPs and their fellows still in the Labour party also demonstrates why working people need to see a genuine socialist Labour party under Jeremy Corbyn once again in power and winning elections, from the European all the way to Westminster.

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YouTube Video for Book ‘For A Worker’s Chamber’

February 22, 2019

This is the video I’ve just put up on YouTube for another of the books I’ve self-published with Lulu, For A Worker’s Chamber. This argues that parliament is dominated by the rich at the expense of working people, and so we need a special parliamentary chamber to represent working people, composed of working people themselves.

Here’s the blurb I’ve put up on YouTube.

This is another book I published with Lulu. It was a written as a challenge to the domination of parliament by the rich. 75 per cent of MPs, according to a recent book, are millionaires, including company directors. As a result, parliament under Tony Blair, David Cameron and now Theresa May has passed legislation favouring the rich and big business.

The result has been the destruction of the welfare state, privatization, and increasing misery, poverty, starvation and homelessness.

The book instead argues that we need a chamber for working people, elected by working people, represented according to their professions, in order to give ordinary people a proper voice in parliament. The Labour party was originally founded in order to represent working people through the trade unions. The Chartists in the 19th century also looked forward to a parliament of tradespeople.

Later the idea became part of the totalitarianism of Fascist Italy, a development that has ominous implications for attempts to introduce such a chamber in democratic politics. But trade unions were also involved in determining economic policy in democratic post-war Europe. And local councils in the former Yugoslavia also had ‘producers’ chambers’ for working people as part of their system of workers’ self-management. Such as chamber would not replace parliamentary democracy, but should expand it.

I discuss in the video just how Tony Blair allowed big business to define government policy as directed by corporate donors, and how staff and senior managers were given government posts. He particularly favoured the big supermarkets and other firms under the Private Finance Initiative. This is extensively discussed by the Guardian journalist, George Monbiot, in his book, Captive State. I make the point that this wouldn’t be quite so bad if New Labour had also acted for working people. But it didn’t. And it has become much worse under Cameron and Tweezer. In America the corporate corruption of parliament has got to the extent that a recent study by Harvard University downgraded America from being a functioning democracy to an oligarchy. I also point out that, while I’m not a Marxist, this does bear out Marx’s view of the state as the instrument of class rule.

I discuss how the Labour party was founded to represent working people by the trade unionists in parliament, who were originally elected as part of the Liberal party, the ‘Lib-Labs’, who were then joined by the socialist societies. The Chartists at one of their conventions also saw it as a real ‘parliament of trades’ and some considered it the true parliament. I also talk about how such a chamber became part of Mussolini’s Fascism, but make the point that it was to disguise the reality of Mussolini’s personal rule and that it never actually passed any legislation itself, but only approved his. Trade unions were strictly controlled in Fascist Italy, and far greater freedom was given to the employers’ associations.

I also say in the video how trade unions were involved in democratic post-War politics through a system which brought trade unions, employers and government together. However, in order to prevent strikes, successive government also passed legislation similar to the Fascists, providing for compulsory labour courts and banning strikes and lockouts.

There are therefore dangers in setting up such a chamber, but I want to empower working people, not imprison them through such legislation. And I think that such a chamber, which takes on board the lessons in workers’ self-management from Communist Yugoslavia, should expand democracy if done properly.

Video for My Book against the Privatisation of the NHS

February 19, 2019

This is the video I’ve just put up on my channel on YouTube for my book Privatisation: Killing the NHS, which I’ve published with Lulu. Here’s the blurb I’ve put up for it:

In this book, also published with Lulu, I talk about the programme of stealth privatisation of the National Health Service that has been going on since Margaret Thatcher first proposed its sell off in the 1980s. This was followed by John Major’s Private Finance Initiative, then Blair’s health reforms, all of which opened up the NHS to private health care companies. Blair was followed by David Cameron and then by Theresa May, who have continued and expanded this process.

The intention is to create a system like America’s, where healthcare is through private companies, financed through private health insurance, although the state also pays for medical treatment for the poorest through Medicare and Medicaid. The book explains how private medicine is less effective than state medicine, and how these reforms threaten to return us to the dreadful period before the foundation of the NHS, when a similar situation to the American prevailed in Britain.

The book is 42 pages long, and costs £5.25.

Here’s the Lulu page for it:

http://www.lulu.com/shop/david-sivier/privatisation-killing-the-nhs/paperback/product-22828232.html

Labour’s Powerful Pro-NHS Ad

February 13, 2019

Okay, a few moments ago I caught part of the Labour party’s new party political ad powerfully defending the NHS and attacking Tweezer and the Tories for its privatization. It featured actors taking the part of patients, doctors and hospital visitors talking about the perilous and shameful state the heath service is in thanks to the Tories’ cuts and privatization campaign. Interspersed with these were truly terrifying statistics. Like 7 million cancelled operations last year, the closure of 450 GP’s surgeries, £9 billion worth of contracts given to private healthcare firms, £7 billion cut from NHS budgets since 2010, and teenage suicides up by 50 per cent. And although the parts were played by actors, the stories they told were real. One doctor talked about how upsetting it was that she had to send parents half way across the country so that their child’s eating disorder could be treated. The various patients featured in the broadcast spoke about hospital overcrowding and patients being left in corridors. They spoke of their disgust that this was happening in one of the richest countries in the world. One black lad, playing a hospital visitor, said how he was most disgusted by nurses running down the corridor, having to rush out and pay a parking meter so that people could visit their loved ones in hospital. The black woman doctor said how she had heard fair words about treating mental health, but the reality was that social care budgets were being slashed all the time. They also lamented how people were being sent to hospital casualty departments because they couldn’t see their doctor.

And the advert said openly what this was all really about, but what the Tories are desperate to hide from us. One of the patients declared that this was about the Tories’ selling off the health service to their friends.

The Tories deny it, of course, but this is the truth. It’s laid out very clearly in a number of books, like NHS SOS, edited by Jacky Davis and Raymond Tallis (London: One World 2013).

I’ve also written a short book describing how the Tories – and Blair’s New Labour – have been determined to sell off the NHS, Privatisation: Killing the NHS, available from Lulu, price £5.25. See here for details: http://www.lulu.com/shop/david-sivier/privatisation-killing-the-nhs/paperback/product-22828232.html

I’ve got a few copies here, so if anyone wants one, let me know and I’ll post them to you. The cost will be as stated plus that of postage.

Labour’s pro-NHS advert is one that desperately needed to be made. It could have come from the NHS Action party, which was formed when Blair started privatizing the NHS and closing hospitals, following the political and economic ideology of his heroine, Maggie Thatcher. It’s great that the party that founded the NHS, the party of Clement Attlee and Nye Bevan, should now have returned to its socialist roots and pledging to end its privatization and give it some real, proper funding.

But this was always the policy of Jeremy Corbyn and his supporters in the Labour party. I found this short video from RT’s Going Underground on YouTube, put up on January 19th, 2019. It shows a woman, who is then joined by a man, walking through a suburban residential district, while Corbyn’s voice intones about a country that believes in fairness, in shared ideals, while they walk past a street named after Clement Attlee.

Rattansi was also discussing the massive defeat that day of Tweezer’s motion on Brexit, the biggest defeat for a post-War prime minister. It shows one MP saying in the debate that the chamber was once the seat of Clement Attlee and Winston Churchill. Now it’s just a farce.

From that, Rattansi goes to talk about the late British WWII hero, Harry Leslie Smith, who made it very clear that he supported Jeremy Corbyn. This is followed by a clip from what looks like Channel 4 News when, speaking from Ontario, Canada, Smith said that Corbyn reminded him of Clement Attlee in 1945, and he thought that if Corbyn put his shoulder to the wheel he’d change England for the better, just like Attlee did. Which to my eyes doesn’t seem to go down terribly well with the presenter, who appears to purse her lips tightly and suppress a smirk when he says this.

I’ve no doubt that over the following days and weeks we’ll get the Tories claiming that they’re putting more money into the NHS than ever before, loudly deny that they’re privatizing it and declare that they’re going to increase funding.

It’s all lies.

Mike in his articles has taken apart these claims, showing that budgets are still being slashed, despite the Tories’ statement that they will increase funding and Tweezer’s vaunted vision of the NHS for the next decade.

Just like Thatcher’s claim that ‘the NHS is safe with us’ was a lie, when in 1987 she was very much thinking about privatizing it, and then under John Major the Private Finance Initiative was introduced with the connivance of American insurance fraudster, Unum, in order to open it up to private industry.

I’ve also no doubt that we’ll be hearing more screams about how Labour is viciously anti-Semitic, or that Jeremy Corbyn is losing young voters because of his stance on Brexit. More lies and slurs, as you’d expect from the Blairites in the Labour party, who are utterly complicit in the Thatcherite privatization programme, and the Tory establishment and media outside.

The reality is that the Tories are determined to privatise the NHS, and with a few rare exceptions, the lamestream media has been complicit in it. There’s an entire chapter in the Davis and Tallis book describing how the Beeb actively promoted the Health Service’s privatization.

Don’t be taken in by the Tories and Blairite’s lies and smears. Only Jeremy Corbyn can be relied on to save the NHS, and so it’s vitally important to support him in the Labour party and get him into No.10 and Tweezer out.

Don’t Be Mislead, May and the Tories Are Still Determined to Destroy the NHS

January 8, 2019

Okay, the papers today have been full of the plan May announced yesterday that would improve the NHS over the next ten years. Apparently they’re going to increase funding by 20 billion pounds above inflation by 2023, recruiting tens of thousands of new nurses and doctors.

Mike today posted a piece ripping apart these promises. He makes the point that the Tories haven’t fulfilled their existing targets to recruit more medical staff. They have also not stated where they intend to fund the money to pump into the NHS.

More sinisterly, one key part of the programme discussed by Health and Social Care Secretary Matt Hancock in an interview with Sophy Ridge sounded like the government is planning to blame poor health on the patients themselves. Hancock said in the interview that the government intended to shift towards helping people to stay health, to stop them getting ill as much as curing them.

Mike makes the point that this sound very much like the claims that the DWP helps people by refusing them benefit. He’s right. I think there has already been discussion of schemes whereby obese people should be refused medical treatment for diseases or conditions brought on by the condition.

Mike also makes the point that the fundamental problem of the Tories’ NHS policy is continuing regardless of their new plans. This is the privatization of the health service. Mike writes

As for privatisation – with more than £8 billion spent on private companies that have been allowed to buy into the NHS by the Conservatives since 2012, concern is high that the whole service in England is being primed for sale, to be replaced with a private insurance-based system, as poor as the schemes currently failing the citizens of the United States. These fears are supported by the fact that current NHS boss Simon Stevens used to work for a US-based health profiteer.

This new 10-year plan, it seems, is setting out to do exactly what Noam Chomsky described when discussing the steps leading to privatisation: Strip the service of funds, make sure it doesn’t work properly, wait for people to complain, and then sell it to private profit-making firms with a claim that this will improve the service.

He makes the case that the NHS will be treated exactly as the other privatized utilities – energy companies, railways, water industry and airports – stripped of funds, sold off, and owned by foreign firms to provide them with profits.

This also is true. Private Eye has reported how the Tories and New Labour were lobbied by private healthcare providers determined to gain access to the NHS, including the American private healthcare insurance fraudster, Unum.

He concludes

So you can look forward to a future in which you are blamed for any health problem that arises, and forced to pay through the nose for health insurance (that probably won’t cover your needs or won’t pay out at all, to judge by the American system).

It seems the Tories’ 10-year plan for the NHS is to trick you into an early grave.

See: https://voxpoliticalonline.com/2019/01/08/new-tory-nhs-plan-is-to-tell-you-your-health-problems-are-your-fault/

The Tories have been determined to privatise the NHS since the days of Margaret Thatcher. She wanted to privatise it completely, but was stopped by a cabinet revolt. She nevertheless wanted to encourage Brits to take out private health insurance and began cutting and privatizing NHS services. This was continued under John Major by Peter Lilley, who invented the Private Finance Initiative in order to help private corporations gain access to the NHS. It carried on and was expanded even further by Blair and New Labour, and has been taken over and further increased by the Tories since the election of Cameron back in 2010.

If it continues, the NHS will be privatized, and the quality of Britain’s healthcare will be what is in the US: appalling. The leading cause of bankruptcy in America is inability to pay medical costs. Something like 20 per cent of the US population is unable to afford private medical insurance. 45,000 people a year die because they cannot afford healthcare treatment.

A year or so ago a Conservative commenter to this blog tried to argue that the Labour party had not established the Health Service and that the Tories were also in favour of it. Now it is true that the welfare state, including the NHS, was based on the Beveridge Report of 1944. Beveridge was a Liberal, and his report was based on the information and views he had been given in turn by civil servants and other professionals. But the Health Service itself was set up by Aneirin Bevan in Clement Attlee 1945 Labour government. The Health Service’s ultimate origins lay in the 1906 Minority Report into reform of the existing healthcare services by Sidney and Beatrice Webb. The Socialist Medical Society had been demanding a nationalized system of healthcare in the 1930s, as had the Fabian Society, and this had become Labour policy in that decade. And later in the 1950s, after the NHS had been established, the Tory right again demanded its privatization on the grounds that it was supposedly too expensive. Even now this is the attitude of right-wing historians and politicians, like Corelli Barnet, who has said that the reason why Britain was unable to modernize its industry after the War like the Germans or French was because the money went instead to the NHS.

The same commenter also claimed that Britain never had a private healthcare system. This is untrue. Many hospitals were run by local councils, but there were also private charity and voluntary hospitals. And these did charge for their services.

I’ve put up pieces before about how terrible healthcare was in Britain before the NHS. Here’s another passage about the state of healthcare for Britain’s working class between the First and Second World Wars, from Eric Hopkins’ The Rise and Decline of the English Working Classes 1918-1990: A Social History (London: Weidenfeld & Nicolson 1991)

The health services between the wars were still in a rudimentary state. Insurance against sickness was compulsory for all workers earning less than 160 per annum under the National Insurance Act of 1911 but the scheme did not cover the dependants of the insured, and sickness benefits when away from work were still lower than unemployment rates. Further, the range of benefits was limited, and hospital treatment was not free unless provided in poor law infirmaries. Treatment in municipal hospitals or voluntarily run hospitals still had to be paid for. The health service was run not by the Ministry of Health, but by approved societies, in practice mostly insurance societies. As a system, it suffered from administrative weaknesses and duplication of effort, and the Royal Commission on National Health Insurance 1926 recommended that the system be reformed; the Minority Report even recommended that the administration of the system be removed from the societies altogether. In 1929 the Local Government Act allowed local authorities to take over the poor law infirmaries, and to run them as municipal hospitals. Not many did so, and by 1939 about half of all public hospital services were still provided by the poor law infirmaries. By that year, it would be fair to say that there was something resembling a national health service for the working classes, but it was still very limited in scope (it might or might not include dental treatment, depending on the society concerned), and although treatment by general practitioners was free for those by the scheme, as we have seen, hospital treatment might have to be paid for. (pp. 25-6).

This what the Tories and the Blairites in New Labour wish to push us back to, although looking at that description in seems that even this amount of government provision of healthcare is too much for those wishing to privatise it completely.

The Tories’ claim to support and ‘treasure’ the NHS are lies. May is a liar, and has already lied about putting money into the NHS. I remember how She claimed that they were going to increase funding, while at the same time stating that the NHS would still be subject to cuts. And I don’t doubt that she intends to take this plan anymore seriously. It doesn’t mean anything. Look how she declared that austerity had ended, only to carry on pursuing austerity.

Defend the NHS. Get Tweezer and the Tories out, and Corbyn and Labour in.

‘I’ Newspaper and Sunday Times Claim David Miliband May Lead Blairite ‘Centrist’ Party

November 12, 2018

Today’s I newspaper for the 12th November 2018 also ran an article following a piece in yesterday’s Sunday Times, which suggested that the launch of the new, Blairite ‘centrist’ party is coming nearer, and that David Miliband, the brother of the former Labour leader Ed, may return to Britain to head it. The article by Richard Vaughan stated

David Miliband is mulling a return to frontline politics as head of a new centrist party, it has emerged.

Plans are under way to launch a fresh political party, with speculation mounting it could be just months away.

Labour MPs, unhappy with the direction of the party under Jeremy Corbyn, are believed to be in talks about forging a breakaway party from the centre ground and looking at Mr. Miliband to lead it.

According to the Sunday Times, the former foreign secretary is eyeing a return to London, having spent the last four years running the aid charity, the International Rescue Committee in New York.

The newspaper also reported that Mr. Miliband met prominent Labour donors Sir Trevor Chinn and Jonathan Goldstein.

His decision to leave UK politics followed his unexpected defeat to his brother Ed for the Labour leadership in 2010. Mr. Miliband sparked rumours of a return in the summer wyhen he said in an interview that he brought PG Tips and Marmite back to his home in the US, adding: “Of course I’ll come back. It’s my home. I’m British.”

Centrist Labour backbenchers still view Mr. Miliband as the “king over the water”, harbouring hopes that he will step back into the political limelight under a new party.

It comes amid persistent reports that Tony Blair is in discussions to create a new party, with suggestions that his one-time political apprentice could take on the job of leading it. Another favourite to lead such a party is the former business secretary Chuka Umunna, who has been one of the most vocal critics of the Labour leadership.

Should there be any chance of a new centrist party being established in time for a general election before Britain leaves the EU, then it would have to be launched before the end of January.

Under parliamentary procedure, 28 January is the latest possible date that an election can be called before Brexit day on 29 March. (p. 15).

Okay, there’s a lot to unpack here. Let’s get started. Firstly, the source of this bit of speculation – and speculation is all it is, rather than news – is the Sunday Times. This is the entirely trustworthy establishment paper, owned by the honest, deeply moral newspaper magnate, Rupert Murdoch, that libeled Mike as an anti-Semite last year. And it is this paper, which is repeating the nonsensical smear that the former Labour leader, Michael Foot, was a KGB spy. Despite the fact that when they ran this story 20 or so years ago, Foot defended his name in the courts, sued ’em for libel, and won. One of the reasons the rag is repeating the smear is because Foot’s dead, and the dead can’t sue for libel. But there is no further corroborating evidence, the charge is still malicious nonsense, and the editor publishing this is still a complete slimeball. In my opinion, of course.

Now let’s attack the claims about the proposed ‘centrist’ party, which might have members from ‘centrist’ Labour MPs. Firstly, there is nothing centrist about the Labour right. They are Thatcherite infiltrators, who follow their former leader Tony Blair, in rejecting socialism and embracing Thatcherite neoliberalism. Thatcher hailed Blair as her greatest achievement. The Blairites thus stand for more privatization, including that of the NHS, and a similar attack on the welfare state and workers’ rights. Blair and his cronies continued Thatcher’s policy of ‘less eligibility’, taken over from the workhouses, to make applying for benefits as difficult and humiliating as possible in order to deter people from claiming them. And I personally know people who didn’t sign on when they unemployed, because of the degrading way they were treated. It was the Blairites too, who introduced the work capability tests for those applying for disability benefit. This was on the advice of the American insurance fraudsters, Unum, based on spurious medical research, which has been criticized as scientific nonsense. Again, this was following the Tories. Unum had been advising Peter Lilley, when he was their health secretary in the 1990s. Lilley introduced the Private Finance Initiative as a deliberate policy to open up the health service to private enterprise. And this was following Thatcher, who would have liked to privatise the NHS wholesale, but was only prevented by a cabinet revolt. As for the unemployed, the Blairites’ contempt for the jobless was clearly shown more recently when one of them – can’t remember whether it was Rachel Phillips or Reed, said a few years ago that if Labour got into power, they would be even harder on the unemployed than the Tories. Which is a very good argument for making reselection of MPs in the party mandatory.

The Labour centrists are nothing of the kind. They are actually extreme right. The real moderates are Jeremy Corbyn and the Labour left, who are a return to the Social Democratic politics of the traditional Labour party. They are definitely not ‘Communists’, ‘Trotskyites’, ‘Stalinists’ or whatever other insults Joan Ryan and the press hurl at them.

Now let’s analyze this ‘centrist’ party that the press have been speculating about for nearly a year. At the moment, it has zero policies and precious few members. One of those, who was part of the project, fell out with the others and left. The early newspaper reports stated that it was being launched with the aid of donors. This should ring warning bells with everyone concerned with the corruption of today’s corporate state. Blair’s Labour party was a part of the corporate takeover of politics. They took funds from corporate donors, like David Sainsbury, and put them into government posts, where they influenced government policy to their benefit. George Monbiot describes the way this corrupted the Labour government and its policies in his book, Captive State. It looks like the centrist party, if it is ever launched, will be intended to maintain the dominance of corporate power over the political parties, against Jeremy Corbyn’s leadership of the Labour party, which has actually expanded its membership to become the largest socialist party in Europe and which actually represents the wishes of grassroots members. Its other policy seems to be that Britain should remain in the EU. I believe this, but the party otherwise represents too much of a threat to ordinary people’s lives, health and livelihoods to ever be worth voting for.

The party’s Blairite foundations also mean it is going to be Atlanticist in geopolitical orientation. That is, it will support America and American policies. Blair and the other architects of New Labour were members of BAP, or the British-American Project for the Successor Generation. This was a Reaganite project to recruit future political and media leaders, give them sponsored study trips to America, so that they would return staunch supporters of the Atlantic alliance. Blair’s pro-American stance could clearly be seen by the way many of the companies lining up to run Britain’s privatized industries or manage what was left of the state sector, including the NHS, were American. Miliband is part of this. I really don’t think it’s any accident that he scarpered off to America after he lost the leadership contest to his brother. And Blair’s own extreme right-wing views is shown by the fact that he accepted an invitation to attend an American Conservative convention at the request of former president George Bush.

The other policy is likely to be staunch support for Israel and its continuing ethnic cleansing of the Palestinians. I don’t know who Jonathan Goldstein is, but one of the possible funders of the new party, Trevor Chinn, was revealed a few months ago as one of the big donors to the Israeli lobby in the Labour party, giving money to Labour Friends of Israel. He’s one of the people behind the Israel lobbyists and their smears of anyone standing up for the Palestinians as anti-Semites. These smears are vile, libelous and deeply offensive. Those smeared as anti-Semites include not just non-Jewish anti-racists, like Mike, but also self-respecting secular and Torah-observant Jews, like Jackie Walker, Martin Odoni, Tony Greenstein and so on. Some of those they’ve smeared are the children of Holocaust survivors, and people, who’ve suffered real racist and anti-Semitic attacks.

If launched, this supposedly centrist party will represent nothing but corporate greed, especially of transatlantic multinationals. Oh yes, and support for the Likudniks and other members of Benjamin Netanyahu’s increasingly Fascistic government coalition, and their persecution of Israel’s indigenous Arabs. It will not support the welfare state, the NHS or the rights of British working people to decent jobs, working conditions, dignity and pay.

That’s if this wretch party ever gets launched at all. It’s been debated for about year now, and the Labour right have been threatening to desert the party and found a new one for even longer. So far, fortunately, they haven’t done so. And it’s possible they never will. Mike over at Vox Political published a piece a little while ago pointing out that new parties find it very difficult to establish themselves as major forces in politics. UKIP was founded in the 1990s, and despite decades of hard campaigning, it’s still -fortunately – pretty much a fringe party. And some of us can remember the Labour party split in the 1980s, when the right-wing rebels left to form the SDP. There was much noise then about them ‘breaking the mould’ of British politics. The result was that they had no more than a handful of MPs, and after forming an alliance with the Liberals then merged with them to become the Lib Dems. Which remains smaller than either Labour or the Tories.

As for right-wing Labour MPs splitting off on their own, Mike showed very clearly why they wouldn’t really want to do that, either. Independents also struggle to get themselves elected. If they ever left the party to run as independents, they’d almost certainly lose their seats at the next election.

The centrist party will thus very likely be a complete non-starter, funded by businessmen to maintain their power over British politics at the expense of the NHS, the welfare state and working people, and preserve British alliance with right-wing parties and business elites in America and Israel. But it is being touted by the newspapers like the Sunday Times and the I, because they fear and hate Jeremy Corbyn’s Labour party, and see it as a way of destroying it and the chance of real change for working people in this country.

The Socialist, Labour Party Origins of the NHS and Welfare State

October 7, 2018

It seems that the Tory party is once again trying to lay some kind of claim to the NHS, even as they destroy it. At the Tory party conference last week I seem to recall one of the speakers claiming that the Tories could be relied on to keep it in budget and governed according to sound financial management.

Which must be why so many NHS Trusts are saying they’re seriously underfunded and in debt.

We’ve heard this nonsense before. A few years ago, former Health Secretary and maliciously incompetent clown, Jeremy Hunt, claimed that the NHS was a Tory invention. It wasn’t. The modern welfare state was created by the Atlee government under the direction of the great Nye Bevan. One right-wing commenter came on this blog to try to argue that the NHS wasn’t the creation of the Labour party, as it was based on the Beveridge Report. Beveridge was a Liberal, who based his report on consultation with a number of sources inside the civil service. But the ultimate origin of the NHS actuall predates the Report. In the 1930s the Socialist Medical Society had also issued demands for the creation of a National Health Service, and the Labour Party had included it in their manifestos. And the ultimate origin of the NHS goes back to the Webbs and their Minority Report on the Poor Law of 1909.

I found a couple of quotes making the socialist origins of the NHS and welfare state very clear in the booklet 100 Years of Fabian Socialism 1884-1984, edited by Deirdre Terrins and Phillip Whitehead (London: Fabian Society 1984).

With Lloyd George and Beverdge, Beatrice and Sidney Webb can just be said to be the founders ofthe modern Welfare State. In particular, Beatrice’s 1909 Minority Report to the Royal Commission on the Poor Law, and the Webbs’ subsequent Prevention of Destitution campaign, laid down a blueprint for the development of welfare programmes to cater for the disadvantaged. (p.7)

Discussing the activities of the Fabian Society during the War, the book states

At home the essays Social Security, edited by William Robson, paved the way for the Beveridge Report. This book, and five others, with a further nineteen research pamphlets, comprised the Fabian war effort. It was condensed in the 1945 Manifesto Let Us Face the Future, written by the Fabian Michael Young, and successful as no manifesto has ever been before or since. (p.17).

As for the Tories, they’ve been repeating the lie that only they, not Labour, offer the sound financial management required to keep the NHS afloat since the 1980s, if not before. I can remember the Torygraph declaring c. 1987 that while Labour had founded the NHS, only the Tories’ good financial management could be relied upon to maintain it. To support this assertion, they stated that when the Italians had set up their version of the NHS in the 1970s it had gone bust within a week.

I really don’t know anything about the Italians’ attempts to set up a system of state medicine, and so can’t comment on that part of the Torygraph’s claim. But the rest of it – that it’s the Tories prudent financial management that has kept the NHS solvent, is nonsense. Dangerous, pernicious nonsense.

And the Torygraph was aware of it at the time, which is why it said it. Thanks to Maggie Thatcher’s management, the NHS was in crisis, with lengthening waiting lists, the postponement of operations and the closure of hospital wards. Maggie, despite her loud denials and denunciations of the Labour party for claiming otherwise, had planned to privatise the NHS. She was stopped because of a full scale Cabinet revolt and the fact that her private secretary, Patrick Jenkin, had been to America and seen for himself just how dreadful the American healthcare system was, funded by private health insurance. Thatcher thus rowed back, and resorted instead to trying to get a certain percentage of the British population to take out private health insurance instead.

The party then went ahead with a programme of piecemeal NHS privatisation through the Private Finance Initiative, which was picked up and expanded by Blair and New Labour when they came to power in 1997. And after Labour lost the 2010 election, the programme has been resumed and expanded in turn by the Tories under Cameron and Tweezer, and their Health Secretaries Andrew Lansley, Jeremy Hunt and their successors.

However, under New Labour the NHS was kept in the black, so any claims that Labour was responsible for overspending or bankruptcy there is a lie. And even in the 1970s the compilers of a report into the NHS stated that further NHS expenditure would easily be met through natural increases in government funding.

Ultimately, the Welfare State and the NHS have been largely the creation of Socialists and the Labour party. The Conservative commitment to state medical care has, by contrast, always been tenuous. In the 1950s the Tory Right revolted and wanted to privatise the new NHS, claiming that it was financially unsupportable. Just as the Tories now claim that it would not be properly financially supported by the Labour party. Even though the Tories themselves have partially privatised it and driven it into debt.

The only solution is for the NHS to be returned to its Socialist origins and be renationalised. Which is what Corbyn promises, and one of the reasons the Tories, New Labour and the media are so scared of him. And why we need Corbyn, and a proper, traditional, Socialist Labour party in government.

Private Eye Covers Shows Blairites’ Real Policy towards Traditional Labour Members

September 18, 2018

This is the cover of a very old Private Eye for Friday, 2nd October 1998. The caption reads ‘Blair Calls For Unity’, and has Blair saying in the speech bubble ‘There’s a leftie – chuck him out!’

This was the time when Blair was trying to modernize the Labour party by removing Clause 4, the part of its constitution formulated by the Fabians and other socialists, which committed the party to the nationalization of the means of production and distribution. In short, socialism. Blair instead was determined to turn it into another Thatcherite party committed to privatization, including that of the NHS, welfare cuts, and job insecurity. Its traditional working class base were to be ignored and the party instead was to concentrate on winning swing voters, who might otherwise vote Tory. He attempted to win over the Tory press, including the Murdoch papers. Despite owing the start of his career to union sponsorship, he was determined to limit their power even further, and threatened to cut the party’s ties with them unless they submitted to his dictates. His ‘Government Of All the Talents’ – GOATs – included former Tory ministers like Chris Patten. Tories, who crossed the floor and defected to New Labour were parachuted into safe seats as the expense of sitting MPs and the wishes of the local constituency party. Blair adopted failed or discarded Tory policies, including the Peter Lilley’s Private Finance Initiative and the advice of Anderson Consulting. This was satirized by a computer programme that made anagrams from politicians’ names. Anthony Blair came out as ‘I am Tory Plan B’.

The direction in which Blair wanted the party to move was clearly shown by him inviting Margaret Thatcher to 10 Downing Street to visit the day after he was elected. And she thoroughly approved of him, declaring that New Labour was her greatest legacy.

Blair and New Labour were also staunch supporters of Israel. It was money from Zionist Jewish businessmen, raised by Lord Levy, whom Blair had met at a gathering at the Israeli embassy, that allowed him to be financially independent from the trade unions.

Now all that is being threatened by Jeremy Corbyn and his supporters. Which is why Blairite apparatchiks and MPs have done their level best to purge the party of them by smearing them as Trotskyite and Stalinist infiltrators and anti-Semites. The charges are ludicrous, hypocritical and offensive. Corbyn and his supporters aren’t far left: they’re traditional Labour, supporting a mixed economy. And far from being anti-Semites, the vast majority of those accused are decent, anti-racist people, including self-respecting Jews and dedicated campaigners against anti-Semitism. People like Marc Wadsworth, Jackie Walker, Ken Livingstone, Tony Greenstein, Mike over at Vox Political, Martin Odoni and many, many others. Many of the Jews smeared as anti-Semites are Holocaust survivors or the children of Holocaust survivors, but this is never reported in the media. Except when the person supposedly attacked is a good Blairite or member of the Israel lobby.

The cover was made in jest when it came out, though it had an element of truth even then. Now it’s even more true. Blair has left the party leadership, but his supporters in Progress and similar groups are determined to cling on to power by carrying out a purge of Corbyn and his traditional Labour supporters.

Just as Blair himself emerged to urge Blairite MPs and Labour members to leave and join his proposed ‘Centrist’ party.

Woodcock Tweets in Support of Amber Rudd, But Hasn’t Been Forced to Resign

April 29, 2018

Here’s another example of the double standards used by the Blairite right in the Labour party. Yesterday Mike put up a piece about the outrage amongst Labour supporters when John Woodcock tweeted in favour of Amber Rudd. Woodcock acknowledged that Rudd had ‘screwed up’ and that there was ‘a big question mark over her competence’, but then said that Labour had more in common with her than others in the Conservatives, and that we should be careful what we wished for.

Mike posted some of the tweets from Labour members, pointing out that the Labour party has, or should have, absolutely nothing in common with a racist, xenophobic party that is deporting its citizens, and depriving them of medical care, welfare support and their livelihoods.

Others criticised Woodcock for his complete indifference to the suffering involved. It didn’t happen to him, so he wasn’t bothered.

And a couple of people stated that it showed real attitude of the so-called ‘Centrists’ to a far right, Fascistic government. They have repeatedly been quite content to facilitate them and their policies.

This is exactly right, and it comes from the fundamental nature of Blair’s New Labour. Fearing he would never win against the Right, Blair effectively gave in. He rejected socialism and moved the Labour party rightward, so that it ignored its traditional working class base to try to gain the votes instead of the aspirational middle classes. At the same time, he also tried to win over the Tory press. Cabinet ministers have said that Rupert Murdoch was a silent presence at meetings, as Blair and his coterie worried about their policies would go down with the media baron. He was also eager, but unsuccessful, to gain the support of Paul Dacre and the Heil.

Many of New Labour’s policies were Tory cast-offs. The Private Finance Initiative was devised by Peter Lilley as a way of getting private industry into the NHS. Academy schools were another Tory policy that had been tried under Maggie Thatcher by Norman Baker, though under a different name. They were a failure, but that didn’t stop the scheme being revived once again by Blair and loudly hailed as the way to reform the British school system.

Blair was a Thatcherite. She called him her greatest success, and was the first person he invited to visit in 10 Downing Street. The Labour right aren’t ‘centrists’, ‘moderates’ or any of the other mendacious names the right-wing media has given to them. They are Thatcherite entryists. In fact, it’s fair to call them right-wing extremists, as one of the tweeters Mike has reposted states.

And several of the Blairite MPs share the Tories hatred of the unemployed and immigrants. Or at least, they do if there’s votes in it. Remember when one female MP announced before Corbyn won the leadership election that Labour would be even harder on the unemployed than the Tories? This clearly came from someone, who had never spent time unemployed, desperately searching for work, or being humiliated by Jobcentre workers, with the threat of sanctions and the food bank never far away.

And then, when the Tories seemed to be gaining a bit of popularity by whipping up yet more hatred of immigrants, another so-called moderate declared that, if Labour wanted to get elected, they should listen to and embrace the anti-immigration sentiments of the British public.

Which is very much what Labour would be doing, if it collaborates in keeping Amber Rudd as Home Secretary. I’m aware that there are probably people much worse behind her, waiting for her job. But the ‘better the devil you know argument’ shouldn’t apply here. Rudd has presided over a vile, racist policy that has seen 7.600 odd people deported from their homes in Britain as illegal immigrants, despite the fact that they have a perfect right to live here as British citizens. It shows that for some of the so-called moderates genuine anti-racism can be conveniently forgotten in the pursuit of votes and alliances with the other Thatcherites on the opposite side of the House.

Woodcock has already been reported to the Whips for his criticism of Corbyn’s handling of the Salisbury poisoning. Mike has also pointed out that his tweet in support of Rudd constitutes the support of a political opponent. Woodcock, however, remains an MP. He therefore states that the National Executive Committee and NCC should call on him to resign, and expel him if he does not. One of the tweeters also made the point that Woodcock’s comments also put the party into disrepute. This is another offence that results in a reprimand or suspension, at least as it has been applied to the Corbyn supporters the Thatcherites in the party have tried to purge.

This should, of course, be what happens. He should be formally disciplined and expelled. But it won’t, because of the double standards of the Blairites in charge of the disciplining process, and their determination to undermine Corbyn while hanging to power whatever the cost.

Another Crisis in the Outsourcing Industry: Capita Now in Trouble

February 1, 2018

Yesterday, Mike reported on his blog that the outsourcing giant, Capita, was now in trouble. Its share price has apparently halved, knocking £1.1 billion of its stock market value. It has axed its scheme to issue £500 million in dividends to its shareholders. Instead, it intends to raise £700 million, partly by selling off parts of the company, which it needs to balance the books. There are also fears that it will make part of its 67,000 strong workforce redundant as well as concerns for the firm’s pension fund.

Mike in his article notes that the company was responsible for assessing the infamous fitness for work tests, for which the government has imposed hidden targets. One of these is that 80 per cent of reconsidered cases should be turned down. Mike therefore comments that if the crisis means that some of these assessors get a taste of what they inflicted on benefit claimants, this would be a case of poetic justice. He also wonders what the firm was doing when it devised the scheme to issue those massive dividends to its shareholders. Did they believe that the government’s magic money tree would continue to allow them to give heaps of money to their rich shareholders? He also asks other searching questions, such as whether it was deliberately underbidding to get government contracts, and then using the money to help finance those projects it had already won.

Mike concludes

So: First Carillion collapsed. Now both Interserve (remember them?) and Capita are in trouble.

Who’s next? And what will happen to public services while the Tories dither over this crisis?

See: https://voxpoliticalonline.com/2018/01/31/in-the-crap-ita-government-contractor-responsible-for-benefit-assessments-is-in-deep-financial-doo-doo/

Capita, or as Private Eye dubbed it, ‘Crapita’, has a long history of incompetence behind it. Way back in the 1990s it seemed that hardly a fortnight went by without Capita turning up in the pages of the satirical magazine. And the story was nearly always the same. The outsourcing company won a government or local authority contract to set up an IT system or run IT services. The project would then go over time and over budget, and would be massively flawed. And then a few weeks or months later, the company would be given a contract somewhere, and do exactly the same thing there.

You’re left wondering how Crapita kept winning those contracts, when it was so manifestly unfit to carry them out. Who did it have on its board? Or was there a deliberate policy by Major’s government to support outsourcing, no matter how inefficient and incompetent they were, because it was private enterprise and so preferred and supported for purely ideological reasons?

In any case, what seems to have placed the company in a very precarious financial situation is the usual tactics of big companies in this stage of capitalism: award massive dividends to the shareholders. This usually goes along with starving the rest of the company of investment, which seems to have been done to. And granting massive, and massively unsustainable pay awards to senior management. There’s no mention of that in Mike’s article, but I don’t doubt that this was done too. I’ve got the impression that it’s just about standard practice across a huge swathe of industry.

This is a financial strategy that has driven far more than one company to the wall. I also wonder if the executives weren’t also trying deliberately to create a debt, so that they could dodge corporation tax for five years. This is one of the tricks Stewart Lansley and Joanna Mack describe in their book on contemporary British poverty, Breadline Britain.

Over the years the outsourcing policy has been in operation, there’s been one crisis after another. The outsourcing companies have repeatedly shown themselves to be incompetent, not just in the case of capita, but also notoriously with G4S and the scandals over the violence and brutality it meted out towards asylum seekers in the detention centres it ran. And, of course, when a whole load of prisoners escaped on their way to court. Or jail.

Private industry has repeatedly shown that it is incompetent to do the work of the state sector. These firms have the disadvantage of having to make a profit for their shareholders, as well as the demands of their management for multi-million pound pay packets. The only way they can afford this is by cutting wages to their workers, and spending as little as possible on the service they are meant to be providing. The result of this has been a series of financial collapses. Carillion was the first. Now Capita and Interserve, another outsourcing company, is in similar trouble.

The only sensible recourse should be to cancel these companies’ contracts, and take everything back in-house. But this won’t be done. I think there’s a problem in that the state sector has been so decimated by the past four decades of Thatcherism, that it no longer has the capacity to run these services itself. There’s also the additional problem that too many politicians and media magnates have connections to these companies, or to firms in a similar position hoping for government contracts. Acknowledging that outsourcing was a failure would damage the interests of these politicos and press barons. There’s also the challenge of actually facing up to the fact that a central plank of Thatcherite dogma – that private enterprise is always more efficient than the state – is absolutely, undeniably wrong. Anybody who makes this point is denounced as a Communist in screaming headlines. You only have to look at the way the Tory press has vilified Jeremy Corbyn for daring to want to renationalise the NHS, the electricity net and the railways. His policies are very far from the total nationalisation demanded by Communists and Trotskyites, but you wouldn’t know it from the frothing abuse hurled in his direction by the Tories and Blairites.

There’s also another problem with calling an end to the outsourcing scam. PFI contracts and outsourcing allow some of the costs to be written off the official government accounts sheet. They’re still there, and we have to keep paying them, but they’re not included in the official figures. It’s why Mussolini used a similar scam when he was Duce of Fascist Italy. Any government that restores these projects to the way they were handled before risks putting millions back the official figures. And if that’s the Labour party, you can imagine the Tories making their usual hackneyed and untrue comments about ‘high-spending Labour’, and then re-iterating the spurious arguments for austerity.

I’ve no doubt that the government will do what it can to shore up the current mess the outsourcing companies are in. But the collapse of Carillion and now the severe financial troubles faced by Capita and Interserve show that outsourcing does not work. And given these companies’ highly checkered history, they should never have been given governments to begin with.

And it bears out exactly the description the author of Zombie Economics used for them in the very title of his book. Outsourcing, and the rest of the Thatcherite economic strategy of privatisation, wage restraint, low taxation and declining welfare are ‘zombie economics’ as they don’t work, but haven’t yet been put it into the grave.

It’s high time they were, and Thatcherite free trade capitalism was abandoned as the failure it so glaringly is.