Monbiot’s List of the Corporate Politicos in Blair’s Government: Part Two

Stephanie Monk

Human Resources director, Granada Group plc., which appealed against an industrial tribunal to reinstate workers sacked for going on strike after their pay was cut from £140 to £100 a week.

Member of the Low Pay Commission on the minimum wage, and the New Deal Taskforce.

Sue Clifton

Executive director, Group 4, criticised for mishandling of child offenders after escapes, bullying, riots and attacks on staff.

Advisor to the government’s Youth Justice Board on how young offenders should be handled.

Keith McCullagh

Chief executive of British Biotech. This company has been repeatedly censured by the Stock Exchange, particularly when it was revealed that it’s leading drug product didn’t work.

Chairman of the government’s Finance Advisory Group to help high-tech companies gain financial investors’ confidence.

Sir Robin Biggam

Non-executive director, British Aerospace, which sells weapons to Turkey, some of which are used against the Kurdish separatists.

Chairman of the Independent Television Commission. This revoked the license of the Kurdish satellite station Med TV because of complaints from Turkey that it gave a platform to Kurdish separatists.

Neville Bain

Non-executive director, Safeway, one of the supermarkets which was swallowing branches of the Post Office.

Made chairman of the Post Office.

Robert Osborne

Head of Special Projects division of Tarmac Plc, one of the major constructors of PFI hospitals.

Chief Executive of the Department of Health’s Private Finance Unit. In 1998, returned to Tarmac to run PFI division.

David Steeds

Corporate Development Director of Serco Group Plc.

Chief executive of the government’s Private Finance Panel.

Tony Edwards

Director of the TI Group, which owned Matrix Churchill, the company which provided machine tools to manufacture arms to the Iraqis. He is the company’s chief executive, which is engaged in 150 military operations around the world.

Head of the government’s Defence Export Services Organisation, advising the government on granting licenses to companies wishing to sell arms to different countries around the world.

Neil Caldwell

Director of PTBRO, the distributor of the government’s landfill tax money, for which it receives 10 per cent of the amount handled in administration fees.

Director of Entrust, the regulatory body supervising the distribution of landfill tax money.

Judith Hanratty

Company Secretary, BP-Amoco Plc, one of the most controversial mergers of the 1990s as it amalgamated two of the world’s biggest companies.

On the board of the Competition Commission, monitoring and regulating corporate mergers.

John Rickford

On the board of BT, which has been frequently attacked for having too great a share of the market.

On the board of the Competition Commission.

Sir Alan Cockshaw

Chairman of Construction Company AMEC
Watson Steel, part of AMEC group, won contract to build the masts and cables on the Millennium Dome.

Chairman of the government’s Commission for New Towns. Chairman of the government agency English Partnerships, which is supposed to help ensure that new developments meet public needs.

On the board of the New Millennium Experience Company, firm set up by government to supervise the millennium celebrations.

Michael Mallinson

Property of industry lobby group for property developers, the British Property Federation.

Deputy Chairman, English Partnerships.

Peter Mason

Group Chief Executive, AMEC plc. In 1997 the company was the seventh largest recipient of support from the government’s Export Credit Guarantee Department for construction work in Hong Kong.

The trade body to which it belonged, The Export Group for the Construction Industries – has lobbied against the inclusion of environmental and human rights conditions in the Export Credit Guarantee Department’s loans.

On the Export Guarantees Advisory Council, which governs the payment of government money by the Export Credit Guarantee Department. Liz Airey, a non-executive director of Amec, is another member.

Professor Sir John Cadogan

Research Director of BP.

Director-General of the Research Councils, which are supposed to fund scientific work that doesn’t have an obvious or immediate application for industry.

Sir Anthony Cleaver

Chairman of the Atomic Energy Authority Technology Plc, which oversaw the organisational changes at Dounreay. These were criticised by the Health and Safety Executive as leaving the company in a poor position to decommission the site. Some researchers believed that Dounreay was the most dangerous nuclear site in Western Europe.

Chairman of the government’s Medical Research Council, which has been repeatedly criticised for failing to provide research funds for investigating the medical effects of radiation. Also member of the government’s panel on sustainable development.

Peter Doyle

Executive director, Zeneca Group Plc. Zeneca’s a major biotechnology firm, and was the foremost developer in Britain of GM crops. The company was engaged in a ten-year deal with the John Innes Centre in Norwich to find profitable applications for biotechnology.

Chairman of the Biotechnology and Biological Sciences Research Council, which gives substantial funding to the John Innes Research Institute. Employees of Zeneca sit on all seven of the BBSRC specialist committees.

Member of the government’s advisory committee on Business and the Environment.

Professor Nigel Poole

External and Regulatory Affairs Manager of Zeneca Plant Science; sits on five of the taskforces set up by EuropaBio, the lobbying organisation seeking to persuade European governments to deregulate GM organisms.

Member of the government’s Advisory Committee on Releases to the Environment.

Professor John Hillman

Member of the board of the Bioindustry Association, the lobbying group seeking to ‘enhance the status of the industry within government’.

Director of the government’s Scottish Crop Research Institute, charged with supervising government-funded research projects and providing the government with impartial advice on biotechnology.

Antony Pike

Director General of the British Agrochemicals Association Ltd; Managing director of Schering Agrochemicals/ AgrEvo UK Ltd.

Chairman of the government’s Home Grown Cereals Authority (HGCA), carrying out and funding research into cereal crops. It has not funded any projects aimed at improving organic cereal production.

Professor P.J. Agett

Head of the School of Medicine and Health, University of Central Lancashire. This has received support for its research from three companies producing baby milk. Agett has personally received fees from two companies producing baby milk, including Nestle. The promotion of baby milk to developing nations is one of the most controversial issues in food and nutrition.

Chair of the Department of Health’s Committee on the Medical Aspects of Food and Nutrition Policy (COMA). Three other members of COMA have either directly benefited from payments from the baby milk manufacturers or belong to academic departments which have. One of those, who personally received payments was a Nestle executive.

Professor Peter Schroeder

Nestlé’s director of research and development.

Director of the government’s Institute of Food Research.

Sir Alastair Morton

Chairman of the Channel Tunnel construction consortium, Eurotunnel. This had debts of £9m.

Advised John Prescott on financing of Channel Tunnel Rail Link; Chairman of the Strategic Rail Authority responsible for advising the government on the use of significant amounts to the industry, and ensuring that rail transport gives good value for money.

Privatised Railways and the Failure of Popular Capitalism

One of the Ed Miliband’s election promises has been to renationalise parts of the rail network. As recent polls found, most of the population of this country would like to see the utilities returned to public ownership, including the railways. They’ve been marred with poor service and overcharging since they were first privatised by John Major back in the early 1990s. To make matters worse, the railways are receiving far more in government subsidies than they were when they were nationalised. The British public are paying through the nose for a worse service.

Anthony Sampson discusses the massive failure of the privatised railways in his book, Who Runs This Place: The Anatomy of Britain in the 21st Century. The book examines and describes how Britain has become less democratic, with politicians, government officials and industrialists more remote and unaccountable. He devotes nearly two pages to the privatisation of the railways, pp. 289-90, in which he states

The most disastrous of the privatisations was the last, British Rail, which was also the most visible to the public. Margaret Thatcher had shrewdly resisted selling it off, but John Major weakly gave in to pressure from bankers, and went ahead in 1996. The selling off of the vast railway network was devised by the Treasury to maximise the short-term gains, and was masterminded by Sir Steven Robson. The stations and the 23,000 miles of track would be run by a national company, Railtrack, while separate operating companies would buy and run the trains in different regions. The old railway managers were soon demoted: the chairman of Railtrack was Sir Robert Horton, who had just ben fired as chief executive of the oil company BP; and he chose as chief executive a finance director, Gerald Corbett, who had risen through Dixons shops, Redland cement, and Grand Metropolitan drinks. the track maintenance was delegated to private contractors.

By 2001 the whole railway system was in serious danger. Corbett was out of his field and Horton was in ill-health; he was succeeded by Sir Philip Beck, chairman (like his father) of the Mowlem construction company, whose experience came from the controversial Docklands Light Railway. The lack of effective accountability became tragically clear after a succession of train crashes, which revealed scandalous lack of supervision. The crash at Potters Bar was blamed on careless maintenance by the subcontractors Jarvis, whose chief operating officer blamed sabotage, of which no evidence emerged; he was then promoted to chief executive. The trail of accountability ended up in the sidings of a secretive private company.

The government at last intervened, withdrew support from Railtrack, thereby bankrupting it, and created a new non-profit company, Network Rail, chaired by Ian McAllister, the former chairman of Ford in Britain, with an engineer John Armitt as chief executive. The environment secretary Stephen Byers, who had responsibility for transport, resigned, and was succeeded by the Scot Alistair Darling, and Darling extended the government’s role in July 2004 when he abolished the independent Strategic Rail Authority – which had been created only four years earlier – and took over most of its functions.

The operating companies, which had been only granted short franchises, were more interested in quick profits than long-term planning, and most boards had little experience of railways. South West Trains was acquired by the bus company Stagecoach, built up by the combative Scots entrepreneur Brian Souter and his sister Ann Gloag, which the Monopolies Commission had earlier accused of behaviour that was ‘predatory, deplorable and against the public interest’. They made a new fortune by selling rolling-stock, and bought the magnificent Beaufort Castle in Scotland; but they soon made rash investments in America which brought down their shares and limited their investment in British trains. West Coast Trains was bought by Virgin, run by Sir Richard Branson whose background was in airlines and pop music. South Eastern and South Central trains were run by Vivendi, the French conglomerate which soon hopelessly overextended its empire, from water to Hollywood. The Great North-Eastern (GNER) was owned by the Bermuda-based company Sea Containers, controlled by its American founder-president Jim Sherwood.

The privatising of the network had undermined much of the traditional British pride in railways. The separate regional traditions and hierarchies of engine-drivers, signalmen and stationmasters were swept aside by the cuts and constraints imposed by accountants and financial directors at headquarters. Many of the cutbacks were necessary if the companies were to be made viable; but the upheavals in the operating companies and the collapse of Railtrack had left few people who understood how railways really worked.

The privatisation of the railways failed because the franchises were short-term, and the firms that bought them thus only interested in making a quick buck. They had no knowledge or experience of running railways, and refused to accept responsibility for the disasters and horrendous crashes that occurred. Margaret Thatcher herself recognised that privatising them would be a bad idea, but it clearly wasn’t bad enough to dissuade Britain’s bankers.

As a result, Blair’s government had to extend government power over the privatised railways, even though New Labour was enthusiastically pro-privatisation. Ed Miliband’s planned re-nationalisation of parts of the rail network will thus undoubtedly be an improvement.