Posts Tagged ‘State Subsidies’

Weak and Wobbly Theresa May’s Contradictory and Crap Housing Policy

May 15, 2017

The leak last Thursday of the Labour party manifesto, with its promise to nationalise the railways and parts of the energy network, clearly has rattled the Tory party. Mike over at Vox Political remarked that leak was probably intended to discredit these policies, but instead they have proved massively popular.

http://voxpoliticalonline.com/2017/05/11/labours-manifesto-approved-unanimously-by-nec-and-shadow-cabinet-after-leaked-version-wins-huge-public-support/

I’m not surprised. The Tory party, of course, started shrieking that this would drag us all back to the 1970s – actually not a bad thing, as Mike has also pointed out, considering that the gulf between rich and poor was at its lowest during that decade. The Torygraph also went berserk, and plastered all over the front page of its Friday edition a headline claiming that Labour MPs were ‘disowning’ it. I don’t know how true this was. It could be the Blairites trying their best to undermine their own party again, in order to shore up virtuous neoliberalism. Or it could be just more rumour and scaremongering put out, as usual, by the rag and its owners, the weirdo Barclay twins. The Telegraph has been in the forefront of the newspapers attacking Corbyn since he was elected to the Labour leadership. So many of its stories are just scaremongering or, at best, the fevered imaginings of a frightened capitalist class, that you can’t really believe anything the newspaper actually writes about the Labour party or its leader. Ken Surin, in an article for Counterpunch, quoted statistics by media analysts that said that only 11 per cent of reports about the party presented the facts accurately.

But the fact that the railways do need to be renationalised was ironically shown again that day, as a train I wanted to catch was delayed by 15 minutes. Because a train had broken down. The British taxpayer now pays far more subsidies to the private rail companies for a worse train service than in the 1970s. So once again, we’re back to showing that rather than being a decade of uniform disaster and imminent social collapse, it was better in some ways than the present.

So May has decided to unveil a few radical policies of her own. In order to counter Labour’s promise to build a million new homes, half of which will be social housing, in the next five years, May has announced that her government will boost the number of social housing being built, and included a special right to buy clause. Which sounds good, until you realise that they’re not going to release any more money for it.

Without that extra money, the promise is meaningless.
It’s more Tory lies.

http://voxpoliticalonline.com/2017/05/14/theresa-may-has-actually-announced-a-policy-and-its-rubbish/

The Tory party has absolutely no intention of building any more social housing. Mike has put up in his article a table of the Tories’ abysmal record on housing. These include a 43 per cent increase in homelessness, a 166 per cent jump in the number of people sleeping rough, private rents have gone up by over £1,700 since 2010, and the cost of owning a home for first-time buyers has risen by £65,000. But this won’t worry the Tory party, as 1/3 of them are private landlords. And I distinctly remember Johnny Void posting a number of articles about they sought to profit by the dearth of housing in London.

And this is quite apart from the fact that the Tory press, such as the Daily Mail, is aimed very much at the kind of people, who buy to rent, and endlessly applauds high house prices even though they make homes unaffordable to an increasing number of people in 21st century England. Of course they see such prices as a good thing, as it means even greater profits for them.

So they won’t want to undermine the housing bubble they’ve created, and cause prices to fall by building any more.

But they can’t be seen to be doing that, with Corbyn and Labour hot on this issue.

So they’ve concocted this rubbish, self-contradictory policy, hoping that people will be deceived by the meaningless promise. They hope people will remember the first part, and forget that without any more money, it won’t happen.

Don’t let them fool you.
Vote Labour for a decent housing solution on June 8th.

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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.