Showing posts with label policies. Show all posts
Showing posts with label policies. Show all posts

Thursday, 17 June 2010

20 questions for the next Labour leader - part 2

Having just watched the Newsnight debate between the five contenders for the Labour leadership, I have to confess that I am still not much the wiser. With Jeremy Paxman seemingly more interested in trying to get the candidates to talk about the past (e.g. Iraq, Gordon Brown's leadership) than the future, there was precious little time for the candidates to outline future policy changes. Paxman's attempt to try and get Ed Balls to knife Alistair Darling over his last budget was particularly emblematic of much that is wrong with the way politics is conducted inside the Westminster/media bubble. Then Michael Crick had the audacity to claim that Ed Miliband had underperformed because he had "..failed to put forward the kind of visionary ideas..." that he had outlined at previous hustings. Well of course he failed, Michael, because he wasn't given the opportunity. In fact none of the candidates were.

In a previous blog I outlined five of the top twenty questions that I think need to be addressed in this leadership debate. Only the first of these (why you?) and the last (civil liberties) were really addressed in the Newsnight debate. The issues of housing, inequality and the candidates' own policy priorities were largely ignored. Yet the previous debate hosted by the Fabian Society seemed to be much more policy oriented. As a result it is slowly becoming apparent that there are some distinct differences between the various candidates, but we will only be able to fully appreciate what these are when we find out where each candidate stands on a range of different issues. Many of these critical issues will be in policy areas where the last government was found wanting, both by its supporters and by the electorate as a whole.

6) Clearly electoral reform is one such issue. The media think this is only of relevance to political anoraks, but it is becoming clear that it is central to issues of social justice and inclusion. It also impacts on the way political parties position and differentiate themselves and hence on amount of choice voters are given at elections. This was one of the key policies that was addressed at the Fabian meeting. It now appears that most of the candidates are signed up to electoral reform. Ed Balls is even in favour of a written constitution, which brings me on the the next point.

7) Constitutional reform.
One area where the last government lost trust was over its refusal to grant the people a referendum on the Lisbon Treaty. So would a future Labour government grant a referendum on all future EU treaties? This question is even more important given the role that such treaties appear to be playing in forcing the UK government to contract out public services and possibly privatise the Royal Mail.

8) Then there is the euro. Given the current problems in the eurozone it is imperative that we know under what circumstances (if any) each candidate would countenance the UK joining the euro. It is also important that we find out to what extent they each understand the potential economic consequences of doing so. One of the biggest economic consequences of joining the euro would be in the effect it had on the UK financial sector.

9) So would any of the candidates be prepared to reform the banking system to make it more competitive and reduce the risk of another financial collapse? Are they prepared to break up big banks? What other financial measures would they introduce? And how would they prevent the most disadvantaged in society being excluded from access to bank services as banks seek to increasingly make customer pay annual fees for bank accounts?

Of course it is not only our banking system that is prone to excessive executive pay and a disproportionate bonus culture. The same is true of much of British industry.

10) So how would each candidate improve shareholder democracy and Company Law in order to reduce corporate fraud, tax evasion and avoidance, and excessive executive pay and bonuses?

11) How would they regulate takeovers in order to maintain market competition, improve consumer choice and protect British businesses and jobs from unfair competition and commercial predators? There is no doubt that the takeover of Cadbury by Kraft cost Labour many thousands of votes, both around Birmingham and elsewhere.

12) Wealth and Mansion Taxes.
Which candidates would support a Mansion Tax of the type outlined by Vince Cable? Such a tax is far more redistributive than income tax and could generate up to £20bn, as I pointed out a few months ago. That is nearly ten times the amount that inheritance tax currently generates. It is also far more than is currently generated by stamp duty and CGT.

So, twelve down and eight more to go.

Saturday, 29 May 2010

20 questions for the next Labour leader - part 1

Last week Sunder Katwala of the Fabian Society posed the question on the Next Left blog site, "What are the difficult questions the leadership candidates need to answer?". The biggest surprise about this question is that no-one has asked it sooner. Many in the Labour Party who were unhappy with Gordon Brown's leadership may well have acted against him long before the last General Election if there had been a credible alternative candidate waiting in the wings. Unfortunately, one of the reasons that there was no credible alternative (even though there were plenty of potential candidates) was that no-one really knew what any of the possible leadership contenders stood for. The problem now is, we still don't.

There is a common misconception in the media that Labour lost the last election merely because of a failure of presentation, both in its policies and in the personality of its leader. I disagree. I believe Labour lost because it ran out of policy ideas and therefore appeared to many to be a spent political force. After 2001 it had exhausted the stock of policies it had built up in opposition, and any policies it came up with subsequently it had to invent on the hoof while running the country. Unfortunately most of them ended up sounding as though they were made up on the hoof. They lacked coherence and intellectual rigour, and alienated our core support. In fact many of them just didn't work. On top of that there was a total failure to address the issues that affected Labour voters the most (jobs, housing) or angered them the most (bankers bonuses, immigration, the economy). That is why before the Labour Party can choose a new leader, the members need to know where the candidates stand on the issues that matter to them.

Unfortunately, so far in this leadership campaign all we have seen is more of the same. It has been the same bland candidates with the same vacant policy agendas. So far the campaign has been about who has the looks to take on Cameron, and who can amass the biggest army of sycophantic backbench supporters. That is why Sunder is right to ask his question. I have already offered Sunder my initial answer on what those questions should be, but here I will outline my definitive top 20, starting with my top five. The rest will come later.

1) The first question any potential leader should have to answer is the BIG one. It is this: "Why do you want to be leader? "
This is the question that Roger Mudd of CBS put to Ted Kennedy when he ran for US President in 1980. His failure to answer it effectively ended his presidential ambitions. For that reason alone, it is a question that deserves to be put to all leadership candidates. The events of the last ten years demonstrate that if a party is to avoid electoral stagnation, it needs to have a leader with a vision, not someone whose sole aim is to manage things a bit better, or is driven by his own hubris, vanity and lust for power and status. That is the underlying importance of this question.

2) The next question is one that I think follows on naturally from Q1. It is, what is YOUR big idea? What do you see as the fundamental structural problems in British society and what would you do to correct them?

Then we need to get into specifics regarding what a future leader would do if they became PM. If there are three issues that define the failure of the Blair/Brown years, then they are probably the housing crisis, the continuing rise in inequality, and the attack by the last government on civil liberties.

3) Housing
First we need to know if the candidates fully understand the role the housing bubble played in causing this current recession. Do they appreciate the effects that shortages of affordable housing have on distorting the labour market and reducing the mobility of labour? Do they recognise that inequalities in housing inevitably lead to inequalities in health, wealth and education? Do they understand that booming house prices lead to underinvestment in productive industry, and therefore to stagnating GDP and excessive private sector debt? Do they understand that housing booms always end in housing crashes, and that that always leads to recession, or worse? If so, we need to know how they plan to address these problems.
Would they support the building of more Council Houses, or social housing? And if so, how would they ensure that house building occurred in sufficient quantities? More importantly, how would they prevent future housing booms from occurring? I have already argued that control of house price inflation is essential to our future economic growth, and I have already outlined how such price stability could be achieved. If you don’t know the answer then I suggest you look here.

4) Inequality
Despite many noble initiatives, inequality in Britain grew (by some measures at least) under the 13 years of the last Labour government. If the Labour Party stands for anything, then it must be for the promotion of equality and fairness in all sectors of society. I doubt that anything in the last election campaign angered Labour voters as much as seeing David Cameron continually trying to present himself as the new champion of the poor and dispossessed. So any new Labour leader must outline how they would reduce inequality and make Britain a fairer country?

5) Civil Liberties
Despite incorporating the European convention on human rights into UK law, the last government's record on human rights and civil liberties was far from exemplary. Allegations of collusion in torture, extraordinary rendition, unlimited detention without charge and ID cards all made it look repressive and authoritarian. Worse still, it appeared more authoritarian and pro-establishment that the Tory Party. That is hardly a favourable position to be in for a party that claims to be the champion of the working man.
The question then for the leadership candidates (some of whom were associated with many of these illiberal policies) is this. Which should take priority under the law: the civil liberties of the individual, or the right of the state to maintain its own security? To claim (as many politicians do) that one must always try and balance civil liberties against the need for security seems to me akin to arguing that a country should always try to compromise between democracy and totalitarian rule. It can never be about balance or compromise. It is always about principles. It is about which of the two viewpoints should take priority, both in government policy, and under common law. It is also about the balance of power between the establishment and the people: the rulers and the ruled. That is why Labour should always be on the side of civil liberties, because it is about protecting the disadvantaged from abuse of power by the privileged.

These then are the first five questions I would put to the leadership candidates, but they are not the only ones. It remains to be seen, though, if we manage to get any satisfactory answers to any of them.