Uncut « Labour Uncut

White collar fraud costs us £ billions. Now Labour has a policy to tackle it

25/06/2013, 10:28:04 AM

by Dan McCurry

“When a man steals your wallet, he gets a stretch. When he steals your pension, he gets away with it,” said Emily Thornberry as she launched her policy for Tackling Serious Fraud and White Collar Crime.

In this country, the Serious Fraud Office (SFO) is considered a bumbling fool, whose work has been cut back so much that last year it only brought a mere 20 trials, on a total budget of only £30m.

To put that in some context, fraud costs the British economy £73billion a year. It was with this thought that the shadow Attorney General travelled to America to see why US prosecutors have such a formidable reputation.

Thornberry arrived in New York and moved on to Washington. In these two cities she found fraud prosecution teams buzzing with the brightest talent. Young lawyers aggressively compete for opportunities in fraud, not because it pays well, but because this is where the big reputations are made.

What a contrast with this country. For years, decades, the SFO has been castigated as a disorganised waste of time and money. Trials collapse, fraudsters walk free, judges criticise, journalists attack, and politicians pour resources into a bottomless pit. Thornberry realised that over all these years of criticism, the focus has been wrong. The problem is not the institution. The problem is the law.

As a simple interpretation of the existing British law, a company can be prosecuted, but a person has to represent that company in the dock. So the directors distance themselves from the crime, and hire lawyers to obstruct the feeble powers of the police investigator. This confuses the situation and allows the company and its directors to wriggle off.

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Letter from Wales: Where has “clear red water” got Wales?

23/06/2013, 12:18:56 PM

by Julian Ruck

Back in 2002 Rhodri Morgan gave his “clear red water speech,” declaring “We’re not old or new Labour, we’re Welsh Labour.” It set the course for Welsh Labour’s approach to government, citing Beveridge and Bevan as the inspirations.

Fine words but more than 10 years later, where has it got us?

Perhaps Morgan would have been more honest had he said, we are going to fight Tony Blair to the death and to hell with modernising public services, the Welsh economy, health and education.

We want the days of old council chamber back-slapping and back-scratching in Cardiff Bay. We want to be welsh and proud of it, no matter what the cost. You boyos in Westminster can pay our bills, no questions asked. We know our devolved rights, so go and get stuffed!

For every Welsh person almost an extra £4,000 is borrowed compared to England. This Welsh Labour dream of an outdated socialist Brythonic Atlantis has bankrupted Wales, bankrupted the education of our young and bankrupted the Welsh health service.

The Welsh Labour party’s obsession (and Plaid Cymru’s) with a tyrannical Westminster Labour party has resulted in a dire attempt to free fall into isolationism without a parachute.

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It may be big, but how should we use it? Data, elections, growth and 2015

21/06/2013, 10:12:07 AM

Last week Dan Fox’s proposal on data development loans was voted top f the policies for supporting entrepreneurship at the latest Pragmatic Radicalism event, chaired by Chuka Umunna MP the shadow secretary of state for business.

“Described by pollsters as a weather-vane constituency, it is contemporary information technologies making a difference this week. Jill tapped the side of her Google Glass display and began directing canvassers. “The Harrises. Last time we spoke to them, they complained about the daily commute. Can you get up that chart of rail fares and investment?” Swiping away at his iPad, Jack strolled off, armed with all he needed to connect, both electronically and emotionally, with the voters at number 23. On the opposite kerb, two of his colleagues were not having quite as much luck generating an augmented reality view of the lighting and paving repairs that had taken place on the street since Labour had taken over the local council in 2013.”

Election Sketch, The Times, 9 May 2015

For those who still feel that the biro and clipboard are unnecessary luxuries on the #labourdoorstep, the thought of handheld devices brimming with electronic data being at the centre of elections is at best bewildering. But data is now, as we all know, “Big”. It is all around us and has a permanence in our daily lives akin to a new way of communicating, helping us to understand what we and others are doing and will do. Campaigning is not insulated from this. Last year, Obama For America, set the standard for using Big Data in identifying, motivating and expanding the numbers of your voters. Labour looks set to reflect these techniques.

However, before we get too caught up in a vision of campaignbots traipsing around the marginals like canvassing Terminators, we should also consider the policy significance of Big Data. Although it has not been a great couple of weeks for data of any kind – in the news for all the wrong reasons as the full extent of the surveillance of the personal variety has been exposed – this must not distract us from the thousands of positive, world-changing uses of mass data collection and analysis.

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Labour is headed for trouble in next week’s spending review

18/06/2013, 04:30:24 PM

by Atul Hatwal

Next week, George Osborne will finally spring his long prepared spending review trap.

Here is the chancellor’s basic choreography: the Tories announce an eye-wateringly tight spending round, Labour opposes and the Tories attack Labour for being unreformed spendaholics.

Alternately, Labour back the government’s spending plans, in which case, the Tories attack Labour for being reluctant converts to fiscal responsibility and, as a happy sidebar, Labour’s Keynesian prescription for boosting spending to revive the economy is effectively de-funded.

Either Labour play to the stereotype of profligacy that lost the last election or become me-too Tories.

Ed Balls’ big speech a few weeks ago was intended to unpick this problem and re-position the party. The commitment to aggregate Tory spending plans covered the party’s fiscal flank while Ball’s retained the Keynesian differentiation with his £10bn capital spending boost, funded through increased borrowing.

On paper, it went some way to neutralising the chancellor’s likely attacks.

But there’s a problem.

Now Labour has shifted to a more politically realistic position on spending, it needs to robustly assert this new line.

It needs to use every opportunity to publicise the new approach. To make the progressive case for adhering to overall Tory spending totals (while having different individual priorities) and ensure the public knows that a major change has just taken place.

Otherwise, next week, the Tories will hammer the party for running scared of its own policy. They will paint Labour as insincere and irresolute on spending. The taunts about whether Labour believes what it says will turn the party’s economic drama into a political crisis of leadership.

For the public, the net result will be little different to if Labour hadn’t changed its fiscal stance. Perhaps worse, when taking into account the collateral damage to Ed Miliband’s personal ratings from any squirming on policy.

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Remember how Clinton sealed the deal for Obama last year? Blair could do that for Miliband

17/06/2013, 08:00:16 AM

by Dan McCurry

I was once in a rock band for whom stardom beckoned. We were 16 years old and practiced in the music room at school, playing ‘60s music. The lead singer, John O’Dea, was a mod whose hobby was to beat up punks and skinheads. He was quite embarrassing. The reason he had something to prove was that back in ‘80s, the mods had a reputation for being soft.

One day John wrote some lyrics to a song called “Bollocks to a tramp”, and although we didn’t want to encourage him, the words were good so we added a guitar riff and it rocked.

Up the west end every Saturday,

The Mods, Punks and Skinheads all come out to play,

They really make me sick,

I could hit ‘em with a brick,

Say bollocks to a tramp,

Bollocks to a tramp,

Punks and Skins are tramps,

Say BOLLOCKSSSSSSSSS!!!

We got our first gig at a Mod all-dayer at the Ilford Palais. The crowd went crazy with 2,000 mods cheering at every line, and we were invited everywhere. Unfortunately the band fell at the first hurdle when the bass player got jealous and wanted to take over the vocals, so arranged for O’Dea to be kicked out. At the next gig, we opened with the bass player singing Bollocks to a tramp, and the audience sat all the way through, then clapped politely at the end of it. The magic was gone and the band soon split.

When Labour got rid of Tony Blair, I reflected on the sacking of John O’Dea. Even though I was politically closer to Gordon, I didn’t think it was a good idea to make the bass player into the Prime Minister when we had a star singer in Tony Blair.

Bill Clinton was another star. It’s questionable as to whether Obama would have won last year’s election without his help. Tony Blair could do the same thing for Ed Miliband, but Miliband wants to put space between Labour’s past and present.

Economic consensus has changed since the time of Clinton and Blair. We used to agree that aspiring to owning a house would lift people out of poverty. Even George W. Bush saw sub-prime mortgages as a way of ending poverty. The idea was that people instilled with aspiration lifted themselves up.

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Labour history uncut: What happened next after the general strike failed

14/06/2013, 04:47:16 PM

by Pete Goddard and Atul Hatwal

The general strike was lost. Bitterness and recriminations echoed across the Labour movement and the conflict between the left and Labour’s leadership, once again, took centre stage in Labour politics.

Back to business as usual, then.

April 1926 had seen left wing firebrand James Maxton ascend to the chairmanship of the Independent Labour Party (ILP). He was a strong believer that Labour should stand on an unabashed platform of socialism and a fervent opponent of Macdonald’s strategy of gradualism, respectability and trying to appeal to voters.

Following the collapse of the strike, the ILP adopted its programme of action, “Socialism In Our Time.” This included such crazy notions as a living wage, family allowances and the nationalisation of banks.

Jimmy Maxton responds to research suggesting voters prefer candidates with a ‘sinister stare’

Back in 1926 Macdonald rejected the ILP programme out of hand. He wanted socialism, yes. “In our time” however, was way too immediate and way too specific for his tastes. He was more “socialism some time, maybe sort of soon-ish, but not right now though.”

He said the ILP plans were “a collection of flashy futilities… likely to involve in practice the postponement of all advance, because it would only frighten the electorate and ensure a crushing labour defeat.”

And Macdonald knew all about crushing Labour defeats, having helped bring about that last one by precipitating the fall of the first Labour government and disastrously mis-handling the Zinoviev letter.

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Letter from Wales: Welsh democracy is in a ruinous state

14/06/2013, 10:31:16 AM

by Julian Ruck

If you politically aware folk across the Severn Seas, think Westminster is the political capital of greasy manipulation and ambitious malfeasance, then think again and try this on for size.

Old welsh Labour with its enforcers has now excelled itself, making sport out of the committee system of scrutiny and oversight where policy is concerned. If any member of said committee shows any sign at all of having an independent intellect (or indeed any intellect at all), or god forbid a view that may be deemed “principled”, then they are ignominiously ejected, without a safety harness.

You think I’m joking?

Well, let me appraise you of a recent Children and Young People’s committee, set up to consider the Welsh Assembly’s Social Services Bill.

By way of background, three of the Labour team were in support of a ban on physical chastisement of those objectionable urchins who fall by the parental wayside as it were, the minister overseeing all this, one Gwenda Thomas, was not.

Chance would have it, that just before the committee was due to convene, take evidence and consider an amendment to introduce the child-smacking ban into the Bill, old Labour’s chief whip-master sacked the three liberal musketeers, and without as much as a by your leave.

Christine Chapman (Chair), Julie Morgan and Jenny Rathbone were all replaced by more accommodating members with a more corporally inclined inclination than their predecessors.

When the meeting started, microphones were injudiciously turned off so that the new chair, one Ann Jones, was left to rather miserably explain that she had only just found out about her ‘calling’ to the committee – nothing like being prepared is there?

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Would we really welcome the end of the data state?

13/06/2013, 09:46:22 AM

by Dan McCurry

Ever wondered how mobile phone companies know where you are, in order to route the phone calls through to you? The phone in your pocket is keeping a constant “chatter” with the network informing them of your location. That’s how the police can track you down if you ever become a fugitive. They can tell where you are within a 10ft radius. And if you run, every 30 seconds your phone will inform them, and inform them, and inform them. You were never told this when you bought your phone. No one ever told you your privacy was being compromised on such a scale.

We live in a world where we are recorded by video dozens of times a day, simply while shopping for groceries. At the checkout, our bonus cards record the frequency and breadth of our purchases, and even the times of day of our habits and movements.

Our websites download “cookies” to our computer hard drives which record and survey our surfing, in order to guide us toward the products they’d like to us to buy.

The credit card companies constantly trade information with the credit reference agencies who have a record of every time you’ve paid your phone bill (late or on time), every application to take out a loan (successful or not), and every move of address and consequent new post code. They use this information to judge you, your character, whether you can be trusted with the money they lent you.

Don’t you feel uncomfortable? Don’t you just feel slightly nervous about it all? The sheer size and scale of all the information being collected about you, your habits, what you own and where you shop and whether you can be trusted anymore.

How about if I told you we could end it all with one sweep of a politician’s pen? You could get rid of the lot. Would you vote for it? Would you vote to end all the surveillance and data gathering that swims around you every second of the day?

What if I told you that by pressing a single button you would be able to wipe all the information kept on you and you’d able to start your life afresh knowing that not one single sinister agency would have one single sinister fact about you, would you press that button?

Now, imagine I can make this happen. I have just such a device and I’m putting it in front of you now. All you have to do is press the button. Why don’t you do it? The button is in front of you. Press it and let’s see how it can feel to be free.

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It’s not the despair Ed, it’s the hope

12/06/2013, 10:20:06 AM

by Rob Marchant

So, a week in which, to the great surprise of practically everyone, last week the two Eds came up with a set of policy announcements – or at least, position statements – to “get their retaliation in first” in advance of the government’s spending review. U-turning on a range of issues which they previously stood up for since January 2010 when they first formed their leadership tag team. This could just have been the week when history will remember that it all changed.

Could, not necessarily will, as we shall see.

But good things: child benefit, for example, where Balls has finally accepted the self-evident reality that if he does grant it to rich people, he will have to find a couple of billion from somewhere else, something which will hurt much more. Or the pretty-much-confirmation, by Ed Balls to Andrew Neil, of adherence to Tory spending limits, something which, ahem, Labour Uncut suggested two years ago.

The thing is, we should all be delighted. At the very least, it looks like Labour are finally getting serious about winning, they have paid attention to the polls showing that it’s not where it needs to be, as well as the election results which backed them up. It would, really, be entirely churlish to be critical at this point.

So, as regards the rest of this piece, the nice people can go home and you others, this one’s for you: all you churls out there.

One criticism is that, although the symbolism of the change is hugely important, the change itself doesn’t necessarily go far enough and is flawed in places (such as the house-building programme, as John Rentoul argues here). There are plenty more areas where things need to change.

But, fair enough, it’s a start. As the veteran MP – and welfare specialist – Frank Field brilliantly put it: “Today Ed Miliband said ‘I’m in a hole and I’ve stopped digging’. He’s now got to get us out the hole.”

The second is simple: that this may just be too little, too late. If this is the turning point, it comes more than two-and-a-half years into a parliamentary term. In other words, we now have less time to spend changing people’s perceptions than the time we have already spent letting them form the wrong ones. It will be hard. But it is possible.

The third is: do they really believe in this stuff, or are they just saying it because they think it’s what people want to hear? If they don’t truly believe it, they’ll convince no-one in the long run. Hopi Sen generously extends his belief metaphor to include the coalition as well, but it’s clear who’s the least likely to be believed:

“…with the best will in the world…any British politician standing up and swearing fiscal responsibility is, at best, like a reformed alcoholic declaring teetotalism. Even if you believe their sincerity, you don’t want to give them the key to the drinks cabinet, just in case.”

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Disunity at Unite means trouble for Labour

11/06/2013, 02:05:43 PM

by Atul Hatwal

Yesterday’s sudden departure of Unite’s long standing national political director, Steve Hart, was enough to make head’s turn in Labour leadership circles. That he then followed up with a tweet (now deleted) saying he was told that he was “too close to Labour,” will have set alarm bells ringing.

Given the apparent reason for Hart’s ejection, his replacement, Jennie Formby, seems an odd choice. Unlike Hart she sits on Labour’s ruling National Executive Committee. In terms of Labour’s structures, it’s difficult to be any closer to the party.

However, the organisation chart does not tell the real story of what has happened.

Three factors seem to have been pivotal in Steve Hart’s downfall: clashes at the top of Unite over the union’s proximity to Labour, Ed Balls’ speech last week and the fall-out from Unite’s ham fisted attempts at fixing candidate selections, particularly in London for the European elections.

Steve Hart has been at the heart of London Labour politics for over a decade, having forged close relations with Ken Livingstone’s mayoral administration. When Livingstone’s former chief of staff, Simon Fletcher moved in to a senior position at the London Labour party before the last election, Hart’s influence increased.

When the continuity Kennites took control of key positions in the London Labour party after the general election, Steve Hart’s role in London Labour grew.

And when Simon Fletcher joined Ed Miliband’s office with responsibility for union liaison, earlier this year, Hart’s personal connections extended right to the top of the party.

But unions are jealous, internecine places. Their internal politics are largely masked to the outside world but as with all large organisations, the competition and back stabbing are vicious.

Steve Hart’s increasing influence would not have been welcome, particularly to those on the left of the union vying for control of Unite’s political direction.

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