Tendance Coatesy

Left Socialist Blog

Alternative Models of Ownership: Cleaning the Augustan Stables of Public Services.

with 2 comments

Image result for New ownership mcdonnell

“Democratically owned and managed public services” at heart of Labour Policy.

It is hard for those who backed Tony Blair and Gordon Brown during their terms of office to come to grips with the legacy of a “what works” policy that favoured private business involvement in public services and did not challenge the Conservative dismantling and sell offs of the nationalised industries.

During the Blair years, before and as Prime Minister, and under Gordon Brown’s term of office, there were however critics on the left who pointed criticised the outsourcing and privatisation policies they continued.

David Osler wrote in Labour Party PLC (2002),

Tony Blair transformed the relationship between Labour and the private sector to the point where Labour now claims to be the natural party of business. This new friendship has been cemented through a series of huge donations to Labour, from top business people and leading companies. Corporate supporters—including multinationals with questionable track records on union recognition, human rights, and the environment—have reaped the rewards of lucrative privatisation contracts.

Owen Jones observed in this context ten years later that (Independent 2012) ,

“Blair failed to establish a new political consensus. He accepted the fundamentals of the Thatcher settlement: low taxes on the wealthy, weak trade unions, the dominance of the market over all. His great departure from Thatcherism was a desperately needed boost to spending on public services.”

“Labour’s current opposition to what the Coalition is doing is hobbled by the fact that Blair laid the foundation for so much of it.”

Take the privatisation of the NHS. Under Blair, private sector involvement began to flourish and a commercial directorate was set up in the Department of Health. Gove is now expanding Blair’s Academy schools programme, and free schools are a logical extension of them. The Coalition trebled the tuition fees that Blair introduced. Across public services, Blair expanded the role of the private sector – though not as fast as he would have liked, thanks to internal party opposition. But Cameron is taking this “reform” (the Blairite and Tory code word for “privatisation”) ever further. “Public sector reform” has come up in the many conversations Blair has apparently had with Cameron, and I’m sure the ex-PM has had much advice to offer.

It seems as if a new approach, grounded on thought-out alternatives, is now being developed to the “private firms work best” policy.

Text of Jeremy Corbyn’s speech today at the Alternative Models of Ownership Conference.

Labour List.

It is a pleasure to close today’s conference, which has shown once again that it is our Party that is coming up with big ideas.

And we’re not talking about ideas and policies dreamed up by corporate lobbyists and think tanks or the wonks of Westminster, but plans and policies rooted in the experience and understanding of our members and our movement; drawing on the ingenuity of each individual working together as part of a collective endeavour with a common goal.

Each of you here today is helping to develop the ideas and the policies that will define not just the next Labour Government but a whole new political era of real change.  An era that will be as John said earlier radically fairer, more equal and more democratic.

The questions of ownership and control that we’ve been discussing today go right to the heart of what is needed to create that different kind of society.

Because it cannot be right, economically effective, or socially just that profits extracted from vital public services are used to line the pockets of shareholders when they could and should be reinvested in those services or used to reduce consumer bills.

We know that those services will be better run when they are directly accountable to the public in the hands of the workforce responsible for their front line delivery and of the people who use and rely on them.  It is those people not share price speculators who are the real experts.

That’s why, at last year’s general election, under the stewardship of Shadow Business Secretary Rebecca Long-Bailey, Transport Secretary Andy McDonald and Environment Secretary Sue Hayman, Labour pledged to bring energy, rail, water, and mail into public ownership and to put democratic management at the heart of how those industries are run.

This is not a return to the 20th century model of nationalisation but a catapult into 21st century public ownership.

The failure of privatisation and outsourcing of public services could not be clearer.

From Carillion’s collapse and the private sector’s chronic inability to run the East Coast Mainline to the exorbitant costs of PFI and the hopeless inability of G4S even to handle basic security at the London Olympics the same story is repeated again and again; costly, inefficient, secretive.

Unaccountable corporate featherbedding, lubricated by revolving door appointments between Whitehall, Westminster and private boardrooms as service standards and the pay and conditions of public service workers are driven down. This obsessive drive to outsource and privatise has been tried and tested to destruction.

Carillion’s meltdown is a watershed moment. We need to take a new direction with a genuinely mixed economy fit for the 21stcentury that meets the demands of cutting edge technological change. Public services that reflect today’s society and the industries of the future.

We need to put Britain at the forefront of the wave of international change in favour of public, democratic ownership and control of our services and utilities.

John McDonnell, the Shadow Chancellor, has said that the plan of the Labour party to bring services including energy, rail, and water under public ownership would be free of cost.

Report: ALTERNATIVE MODELS OF OWNERSHIP.

Finance Co.uk

At a conference that was held in London on “alternative models of ownership,” he told the audience that Carillion’s collapse attested that privatisation had failed.

McDonnell stated that taking essential infrastructure assets out of private ownership is “an economic necessity,” and could be achieved while not bring additional costs to the taxpayers.

On BBC Radio 4’s Today programme, McDonnell stated: “It would be cost-free. You borrow to buy an asset, and when that asset is producing profits like the water industry does, that will cover your borrowing cost.”

In his speech, McDonnell also said: “The next Labour government will put democratically owned and managed public services irreversibly in the hands of workers, and of those who rely on their work.

“We will do this not only because it’s right, not only because it’s the most efficient way of running them, but also because the most important protection of our public services for the long term is for everyone to have and feel ownership of them.”

The Conservatives have since denounced the said plan, saying that it will cost billions of pounds and result to worse services. Meanwhile, the CBI, a business group, said that the cries for nationalisation “continue to miss the point.”

Neil Carberry of the CBI stated: “At a time when the UK must be seen more than ever as a great place to invest and create jobs, these proposals would simply wind the clock back on our economy.

“If Labour turns its back on good collaboration between the government and the private sector, public services, infrastructure and taxpayers will ultimately pay the price.”

John McDonnell also revealed the creation of a working group that is tasked to study how cooperatives and organisations that are owned and run by their members could be developed.

It continues,

Later in the said conference, Jeremy Corbyn, the Labour leader, said that nationalising energy companies was essential in order to avoid a “climate catastrophe.”

Corbyn stated: “People have been queueing up for years to connect renewable energy to the national grid. With the national grid in public hands, we can put tackling climate change at the heart of our energy system.

“To go green, we must take control of our energy.”

However, the Centre for Policy Studies said that the suggestion of Corbyn that nationalisation was essential to encourage small-scale renewable energy “suggests that Labour will have to borrow billions more to pay for the necessary infrastructure, or else pass the cost on to consumers via their fuel bills.”

The director of the Centre for Policy Studies, Robert Colville, stated: “The shadow chancellor claims that nationalisation would be cost-free because the state would be acquiring an asset – repeatedly using the analogy of taking out a mortgage on a house. Yet who would buy a house without knowing its price?

“McDonnell dismissed our £86bn estimate of the cost of nationalising the water industry as ‘laughable’ – even when the Social Market Foundation came out with a near-identical estimate. Yet neither he nor any Labour figure has disputed the detail of a single one of our estimates.”

The Left is  now debating these important and, very welcome, policy changes.

Chartist Magazine.

 

Advertisements

Written by Andrew Coates

February 14, 2018 at 1:53 pm

2 Responses

Subscribe to comments with RSS.

  1. This is the man whose grasp of financial control was so bad even Livingstone had to sack him.

    Dave Roberts

    February 14, 2018 at 9:54 pm


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: