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*That* question for @Ed_Miliband about #wonga

January 12, 2012 5 comments

It’s always a tricky one asking difficult questions of one’s own party leader, but while we’re talking about Wonga, it might be worth just bringing an old one up again.

In October 2011, the Guido Fawkes chaps were brimming with delight that they’d uncovered information of Ed Miliband meeting with the PR man Roland Rudd – the chief executive of Finsbury.

What makes things rather tricky is that Mr Rudd, back in April 2011, made Wonga a client.

Courtesy of Guido Fawkes

According to the TBIJ, Robin Walker, the Conservative MP for Worcester:

tabled an amendment that watered down a backbench bill which proposed imposing a cap on the cost of taking out an unsecured loan. Two months later Finsbury started working on behalf of Wonga, an online lender that charges interest rates of more than 2,600% a year.

According to his wikipedia page, Walker had an advisory role in Finsbury, which raised eyebrows given the proximity of his amendment in parliament to the introduction of the new client.

*

Today, the debate revolves around predatory and producer capitalism – this was scoffed at by David Cameron once upon a time, now, the Tories are running around like headless chickens in order to do battle with Labour on the latter’s turf.

Wes Streeting, for LabourList, today said:

The mood music in Westminster is shifting. Ed Miliband was mocked for talking about predators and producers last autumn, but now every party leader is trying to stake out the ground of ‘responsible capitalism’ as their own. The behaviour of legal loan sharks like Wonga are an indication of the tough times we live in and why students – as well as hard pressed families – need more than warm words.

Government has a role to play: offering practical help in tough times. It must act.

But how can Ed operate on Wonga? And what is the proximity between Ed and Mr Rudd? Should we be concerned?

“Farage Fever” – a Labour opportunity in disguise?

November 28, 2011 12 comments

The Tories have always had Labour on the argument about the EU.

Knowing which side of the fence a good majority of Tories sit on, regarding the European Union, they are able to draw political capital both from crises within the eurozone, but also look like the fighting party on getting a referendum put to parliament (and because the majority of the British public want a referendum and support leaving the European Union this doesn’t play havoc with the Tories one bit).

According to YouGov polls in October (pdf), if there were to be a referendum the next day 71% of those who voted Conservative in 2010 would have voted for the United Kingdom to leave the EU (compared with 41% in Labour). Further, 69% of those who intend to vote Conservative in the next election would vote the same (compared to 39% Labour).

There is a lot resting on the Tories to provide the right line on Europe to those who intend to vote for it next time – but this will come after a European election in 2014 where, let’s be honest, Ukip are going to do quite well.

This has sent Farage’s babes round the twist with excitement. One such member, Michael Heaver, wrote during one blog post:

According to the latest YouGov poll, some 11 percent of 2010 Tory voters now intend to switch to UKIP. And that’s only since last year. A smattering of highly credible 2010 Tory candidates such as Janice Atkinson-Small and Andrew Charalambous have switched sides as has Lord Hesketh, former Tory Treasurer and perhaps the biggest defection to UKIP in the young Party’s history.

For people like him, 2015 is set to be marked by “Farage Fever” – that is where the Liberal Democrats and their 7% polling “boom” will seem timid in comparison.

Yesterday, I was reading through Jon Worth’s article on LabourList, where he praised his Ukip interlocuteurs for, basically, not being mad and actually bringing some good information to the fore. This got me thinking.

Ukip are able to have a go at the Tories because they look lightweight on Europe and left-leaning in comparison with the political make-up of the general public as gleaned from polls. To Labour, the Tories will always be right wing, but more so because of their fiscal conservative rhetoric. So, Labour have the opportunity to do the unthinkable: split the right by saying something like “Ukip are wrong, but they look even more reasonable than the Tories these days” – or something to that effect.

Expect more backhanded complements to the Ukip now that they are actually a threat the Conservative party, but remember that they are at best unreconstructed Thatcherites (i.e. blind to the causes of today’s crises).

Don’t be deterred by Osborne’s trap – strike today!

Today will see schools, prisons and courts employees, represented by trade unions, take strike action against the government on the grounds that public sector workers will work longer while contributing more towards their pension pots.

Union leaders have responded ahead of today explaining their positions. Christine Blower of the National Union of Teachers (NUT) has called the action “regrettable” but “due to the position that the government has taken, unavoidable”. TUC General Secretary Brendan Barber pointed out that pay has been frozen for two years despite high inflation, and that the feeling is public sector workers are being punished for a poor economic outlook they had no part in creating.

Strike

It is beyond despair that Ed Miliband has dismissed the strike out of hand, given that he is the leader of the Labour party. More depressing is he’ll gain nothing for it; David Cameron will continue accusing him of being in the pockets of the unions, while the laughing tabloid press continue running headlines to suit.

Ed Balls, the shadow chancellor, has hardly pledged undivided support for mass action, but what he has said is of interest. Commenting on Osborne’s strategy, he called on public sector workers not to fall into the chancellor’s trap. The trap being laid out is one, not too dissimilar from the bad snow episode – where if recovery appears slow, Osborne can raise the alarm that public sector workers are the cause.

It would seem that if Balls is saying this he knows it to be dishonest – therefore him and his party should not be giving undue credence to Osborne’s trap by withdrawing strike support.

To be sure Balls knows, and opposes, Osborne’s plans (he calls Osborne joining the Treasury another “fork in the road moment”). At a speech given at the LSE earlier this month (seen to counter the chancellor’s speech at Mansion House the day before) Balls noted that Britain’s slow recovery could cost families £3,300 by 2015, as well as leaving Britain £58bn worse off. The economies in America, France and Germany have all returned to pre-crisis levels, whereas Britain is still below that by 4%.

Commenting on recent ONS figures for growth, Balls said “These final figures confirm that in the six months since George Osborne’s spending review and VAT rise the economy has flatlined and the recovery has been choked off.”

The former children’s minister can see the risks, has been keen to point out that this is ideological (or what William Keegan calls Osborne’s “political straitjacket”) and so should respond in turn by supporting strike action, while preparing to brush aside excuses given by the chancellor for possible poor economic recovery.

What Recovery?

Esther Armstrong writing for Interactive Investor yesterday said “This was supposed to be the year economies the world over got back on track.” In fact George Osborne was hoping the whole mess would be sorted by now, but his inability to change tack through fear of looking weak has meant the British economy is shooting below target (indeed Jonathan Portes, director of the National Institute of Economic and Social Research and former chief economist at the cabinet office, was reported saying “you do not gain credibility by sticking to a strategy that isn’t working”).

The Office of Budget Responsibility (OBS) has downgraded UK growth projections for 2011 three times now, while we also face a wave of what Duncan Weldon has called “consumer recession”.

Osborne himself admitted that recovery will take longer than he expected, but this has also been compounded with the flatlining of many low and middle income earners. In fact real wages have fallen for the last 17 months and are likely to do so until 2013 – earnings falling below inflation does nothing for consumer confidence, and as Chris Dillow noted (as one of the differences between 1981 and 2010) the ability for people to run up personal debt through loans, in turn offsetting the decline in public spending, is a privilege (if you can call it that) we cannot enjoy today while banks are reluctant to lend.

If Osborne wasn’t so stubborn about saving face, he might have listened to Ed Balls’ idea for a temporary cut to VAT, which would instantly lower inflation, increase real wages, be as easy to implement as to reverse while the cost to do so is way under borrowing forecasts (the former being around £12-13bn versus the latter of £40bn). But alas the horrible show must go on.

What do we have to lose in striking?

In spite of proper Labour support, strike action is necessary. Unions are the only bargaining chip available to the workforce, and the government have been very clear they are not listening.

The damage being done by the cabinet of millionaires (whose pensions, along with other MPs, even after changes “will be among the most generous in the country“) must be challenged. As a Labour party member I’m loathe to say this; but we cannot wait for the opposition any longer – this fight will come from the bottom up, from those most affected by Tory/LibDem bullying, and it is high time this battle was won. This country will no longer be walked all over by the undeserving rich.

The BBC and the “Italian Obama”

December 9, 2010 1 comment

Direct involvement with politics almost always results in a move away from the man in the street and a move towards a rather specialised environment with its own vocabulary, its own points of reference and its own intrinsic assumptions. This isn’t a criticism; the same is true of joining a book club or a rugby team.

Yet it’s helpful to go back and look at some of the assumptions and points of reference every so often. For example, media bias. Almost everyone involved in politics considers the media to distort the truth; whether it’s the anti-BBC privateers or the Murdoch conspiracy theorists. So let’s look at this subject again.

For me, the explanatory power of Marxist analysis is its major attraction. A major bone of contention I have with the media, however, is the increasing prevalence of reporting for the sake of it, without any attempt at explanation, or sense of proportion for that matter. A recent BBC article about Italian politician Nichi Vendola highlights what I mean.

It states, ‘[Vendola] has been criticised for how he has managed Puglia’s health budget, which runs a deficit, and for his opposition to the privatisation of the water supply system.’

The article does not tell us who criticised him for opposing water privatisation. Nor does it set the attempt to privatise water supplies into either a national or global context. In fact it explains nothing about this criticism but uses it anyway. Such unattributable remarks are unacceptable in a Wikipedia article, so why is it acceptable in our national news and broadcasting service?

There are other parts to the article which seem to me objectionable. For example, in discussing Mr Vendola’s homosexuality and Catholicism, it states:

‘He is also a devout Catholic, and has no problem combining his faith with his sexuality. “Catholicism is like my homosexuality, like my political beliefs,” he says, “All these things are part of my identity.”

The quote is simply a reformulation of the original sentence. There is no attempt to actually explain how Mr Vendola reconciles these things. Since the article has chosen to highlight this element to the story, about an up-and-coming governor from Puglia and his beliefs, I think it hardly unreasonable to expect this.

Similarly, when attempting to ‘balance’ the article with some people who do not believe that Mr Vendola is the next Obama, rather than actually investigating the criticisms rendered by the chosen opponent, Rocco Palese, it simply gives over space to polemic, which goes unchallenged by the author of the piece.

I am indifferent to Vendola. I suspect that he is just another social democrat with a communist past and a fetish for identity politics, but I don’t know. My point in raising these issues was not to slap the BBC about for being left-wing or right-wing; it was to criticise the quality of reporting and the style of writing. It is my view that such an approach is near-universal when it comes to reporting on foreign countries. Rather than actually explaining, it simply asserts.

This approach to studying history has left us with endless vapid truisms about how Hitler and Mussolini ‘did some good things’ (often a reference to the autobahns and the trains running on time). Addressing foreign affairs in the same way is likely to leave us little better armed with understanding.

I’m not sure how many people consistently read news from abroad, except perhaps for the odd war or famine. My impression is that it isn’t that many. So what does it matter?

Superficiality encourages superficiality. Not everyone is an original thinker (certainly not me). It should surely be a consideration that, imbibed in quantities however small over a period of years, this damages any attempt at a consistent, collective approach to politics? This is how people end up professing love for the NHS and social welfare but joining the far right, whose real record when in office shows them to be more gung-ho privateers than the Tories. Repetition of assertion rather than explanation is plain dangerous.

It is even more dangerous than the annoying and endlessly self-referential witterings of Polly Toynbee, Martin Kettle and Jackie Whatserface, who are at least aiming at an audience already involved in their cosseted little world. Though, it must be said, they are equally dangerous in restricting the political consciousness of the Labour-voting type, not to mention by name any prolific young Labourite bloggers.

We can return to the Marxist trope that being determines consciousness – and in a great many cases that is true. Class background, the conditions of current struggle, how isolated one is from that and other formative influences all have a much greater part to play than the media do, I believe. But that small part is still worth focusing on, just as we focus on everything else – actual injustice, workers’ rights or discrimination – as a means to lay the path to a better future.

Don’t blame Bevan

A substandard comment on the Labour party would have slipped past my otherwise observant radar, were it not for the collation of good and bad blog entries by the super observant blog of Poumista.

Hywell Williams, in a piece entitled Nye Bevan: the Militant Godfather, states unapologetically that:

Bevan created a party within a party and together with his Bevanites he brought a Leninist skill to the business of organising internal dissent to Clement Attlee and Gaitskell.

All the typical stuff about Bevan being a Marxist and entryist to bring about his rancid communist beliefs in a normal decent party (my bombast). Not true, but even so, the point about Bevan creating a party within a party (as though this had a direct effect on the militant tendancy of the eighties – can Bevan be blamed for this, yet referred to as its Godfather, if it is true that Hatton and the like looked to the Bevanites as inspiration) is a sin, a lie like no other.

But there is hope for Williams, and his nonsense, yet. He goes on to say:

He [Bevan] then justified his scheming as the only way to keep Labour a socialist party

Save for the “scheming”, precisely! Bevan wanted to keep the Labour party socialist, not create a (socialist) party within a party. A pity Williams had not realised his own perfect critique was contained within his own Kinnockite drivel.

Discuss.

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