Posts Tagged ‘Regulatory Agencies’

EU Tells Tweezer Unwelcome Fact, So Bojo Spout Nonsense as Distraction

January 20, 2018

More spin and misdirection from the Tories. Yesterday, Mike put up a piece commenting on Bojo’s bizarre utterance about building a channel bridge. He doesn’t like the Chunnel, you see, and thought that a bridge would be much better. This drew down a barrage of criticism from everyone, who had any connection or knew anything about the shipping industry. 500 ships go through the straights of Dover daily, and so the construction of the bridge, if not the structure itself, would cause massive disruption to international shipping. This was pointed out by one of the shipping associations.

The idea’s a complete non-starter.

But as Mike points out, it looks like a clever piece of misdirection on the Tories’ part. Tweezer had been told earlier that day by the EU that Brexit would mean the financial sector leaving London. This is absolutely true. The EU financial regulatory body has packed up and moved to Paris, another international financial organisation has sought pastures new overseas, and Frankfurt ‘Manhattan’ Am Main is doing its level best to encourage financial houses to relocate there.

But the Tories, and Blairite Labour, are handsomely support by the financial sector, and govern on their behalf. One Tory industrialist, who actually came from manufacturing, has said that he couldn’t get Thatcher to understand that a strong pound damaged British exports abroad. And under Blair we were told that British manufacturing was finished, and we shall concentrate on getting jobs and supporting the financial and service sectors. Deanne Julius, who was given a high-ranking post at the Bank of England after working in various American banks, actually said that we should concentrate on servicing American industry. Which shows you which way the Americans think the ‘Special Relationship’ goes.

Bojo is known for uttering nonsense, and saying things that are stupid and controversial. It seems the Tories have weaponised this. And so when the EU told Tweezer the unwelcome news, which would upset her backers in the financial sector, someone it seems prodded Bojo to make a stupid comment. Thus the bilge about a Channel Bridge, which got everyone talking about that, rather than the boring, but very real threat, that the City of London was going to be decimated by Brexit.

And I expect that as more unpleasant news comes out about the effects of Brexit, we can expect more stupidity from Bojo to take the heat away from his party, and the mistress he barely supports.

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Vox Political on Yvette Cooper Condemning Renationalisation

February 23, 2016

Mike over at Vox Political also has a piece from the Independent about Yvette Cooper. Apparently, she is set to make a speech attacking the nationalisation of industry as an old, discredited idea. It will not help modern workers, according to her, or those trying to ‘build an app’. Mike therefore asks if she’s deliberately trying to mislead people about the issue in defending ‘wasteful’ privatisation. See http://voxpoliticalonline.com/2016/02/23/is-yvette-cooper-deliberately-misleading-people-about-nationalisation/.

Now I agree with Mike that privatisation is wasteful. It also led, paradoxically, to a massive increase in bureaucracy. This expanded massively when the utility companies, including that for water, sewage and the environment, were sold off and separate regulatory bodies had to be set up. In order to try and keep to their promise that selling off Britain’s family silver would reduce bureaucracy, they had to cut down on the regulatory bodies so that they wouldn’t have so much power, and wouldn’t represent the interests of the consumers. And there was also the usual revolving doors between the civil service and the privatised utility companies, where the mandarins who were supposed to be watching them in the public interest did no such thing, and later got a job with them after they left Whitehall. I can remember reading report after report on this, fortnight after fortnight, in Private Eye in the ’90s. It was all part of the sleaze surrounding John Major’s administration.

I’ve also heard that, despite the impression given by privatisation that all aspects of energy generation, and its supply, and that of water and gas, the actual infrastructure remains the concern of the state. The private utility companies get to cream off the profits, but the actual maintenance of the national grid, pipes and so on remain the duty of the state, which bears the financial burden. Now I’ll have to check on this, but if it’s true, then privatisation really has been just a scam with minimal benefit to the consumers. Quite beyond the very obvious profiteering we’ve seen by the energy companies themselves.

Now let’s come to the example of the information technology industry she used. It won’t help workers developing an app, according to Cooper. Now, the free marketeers just love the computing and information technology. Look, they say, at the way a group of private individuals in the 1970s – Steve Jobs, Bill Gates and others, built a whole industry from sheer private enterprise, all in the garages or spare time or whatever. The Financial Times had a go at this myth, as did Adam Curtis in his documentary, All Watched Over By Machines of Loving Grace. The Financial Times pointed out that the kids, who were able to create the modern computing industry, were able to do so not because of the free market, or because their part of California had excellent schools, or indeed any of that. They were able to get ahead and develop it because they were all already very wealthy, and could afford to develop their creations. And Adam Curtis in his documentary went and showed that the mathematical basis behind the suggestion that private enterprise gives better results through allowing people to co-operate independently and form a coherent strategy without a central planner was also baloney.

And if you want a real counter-example, then try France. The French computer industry was created in the 1970s through the efforts of the French state. And the French have been very successful in their efforts. So central planning, nationalisation and state investment can help create jobs in the high technology sector. Even in America, my guess is that much of the technology sector is supported by generous state subsidies, regardless of what Cooper believes or think she knows about the benefits of laissez faire industry.

Now I have to say, I think Cooper genuinely believes that private enterprise is superior to nationalised and state-owned industry. It’s a basic item of faith of the New Labour clique. And she also has a point about nationalisation not necessarily benefiting workers. Harry Gosling, the founder of the T&GWU with Ernest Bevin, made a speech in Bristol stating that nationalisation wouldn’t do so unless it involved a degree of worker’s control. And proper representation of the workforce in the workplace is what trade unions are for. It’s also what the Labour party was set up to do. Unfortunately, Blair, Broon and New Labour decided that they didn’t. Just before one of the two left office – I can’t remember which one – they passed a whole tranche of legislation actually weakening the unions. Moreover, on the government website telling you what rights you had under the law as a worker, there was also a secret section for employers that told them how they could circumvent all this. So there’s an element of hypocrisy there. Cooper’s against nationalisation, because it wouldn’t help the workers. But Blair wasn’t keen on organised Labour either. I can remember how he threatened to cut the ties between the unions and the Labour party.

And there’s more, much more to be said about this. I’ll blog about the foundation of the nationalised industries some other time. But for now, the opposite of what Cooper said is true: privatisation is discredited, and the privatisers of New Labour have also shown themselves unwilling to act for the poor or the working class either. It’s why UKIP took off so spectacularly. And while their leadership are privatisers on steroids, most of the grassroots members actually want the utilities nationalised. The Angry Yorkshireman wrote several pieces about this, all of which are worth reading.

Jimmy Carter on the Corporate Corruption of Regulatory Authorities

February 4, 2016

I found this very pertinent piece from former US president, Jimmy Carter, in the collection of pieces by Hunter S. Thompson, The Great Shark Hunt (London: Picador 1980). It’s in Carter’s 1974 Law Day address to the students at Georgia University.

We had an ethics bill in the state legislature this year. Half of it passed – to require an accounting for contributions during a campaign – but the part that applied to people after the campaign failed. We couldn’t get through a requirement for revelation of payments or gifts to office-holders after they are in office.

The largest force against that ethics bill was the lawyers.

Some of you here tried to help get a consumer protection package passed without success.

The regulatory agencies in Washington are made up, not of people to regulate industries, but of representatives of the industries that are regulated. Is that fair and right and equitable? I don’t think so.

I’m only going to serve four years as governor, as you know. I think that’s enough. I enjoy it, but I think I’ve done all I can in the Governor’s office. I see the lobbyists in the State Capitol filling the halls on occasions. Good people, competent people, the most pleasant, personable, extroverted citizens of Georgia. those are the characteristics that are required for a lobbyist. They represent good folks. But I tell you that when a lobbyist goes to represent the Peanut Warehouseman’s Association of the Southeast, which I belong to, which I helped organise, they go there to represent the peanut warehouseman. They don’t go there to represent the customers of the peanut warehouseman.

When the State Chamber of Commerce lobbyists go there, they go there to represent the businessmen of Georgia. They don’t go there to represent the customers of the businessmen of Georgia.

When your own organisation is interested in some legislation there in the Capitol, they’re interested in the welfare or prerogatives or authority of the lawyers. They are not there to represent in any sort of exclusive way the client of the lawyers.

The American Medical Association and its Georgia equivalent – they represent the doctors, who are fine people. But they certainly don’t represent the patients of a doctor.

Obviously, there are some differences between the situation Carter and Thompson describe. I think we do have legislation in this country, which requires gifts to ministers and civil servants to be declared. And some of the most determined opposition to the Tories’ campaign to privatise the NHS has come from the ranks of the British Medical Association.

But the substance of what Carter said is as true today as it was when Carter said it. If you read Private Eye in the 1990s, you saw fortnight after fortnight yet more news of someone from one of the industries getting a job in the body that was set up to regulate it. And it’s gone on. Private Eye are still running stories about banks and the leading accountancy firms, who were most notorious at dodging tax sending senior staff to act as interns or advisors to the Inland Revenue and the financial regulatory authorities. Or else a former managing director or chairman of the board from one these industries him- or herself gets a place there.

As for the lobbyists, Mike over at Vox Political the other year ran many pieces describing the Tory act that was supposed to limit their influence. Except it didn’t. What it did instead was try to cut out the influence of smaller, grass roots activist groups campaigning against some injustice or piece of misgovernment, and try to limit the ability of trade unions to campaign against particular issues. The lobbyists themselves were left largely untouched. As you can expect from a government, whose annual conferences are paid for by the big corporations, and which is headed by a PR spin merchant: David Cameron himself.

Carter was right to attack the corruption of the regulatory bodies by the very corporations they were meant to be overseeing, and his remarks on the pernicious influence of the lobbyists is still very timely. It’s time to clean up politics, and get rid of them and the Tories.