UNCUT: How Osborne is feathering his own nest

27/06/2013, 03:00:06 PM

by Dan McCurry

George Osborne is desperate to have some kind of legacy that he can tell his grandchildren about. Selling the state-owned banks would be that legacy. The only problem is that universal advice tells him that now is not the time.

Stephen Hester had earned great praise for his achievements as boss of RBS, with investors such as Fidelity’s £2.5billion fund manager Sanjeev Shah describing him as “doing a fantastic job.” But look at the reaction from the brokers since Hester announced his departure.

Investec Securities:

The manner of Mr Hester’s departure is deeply unsatisfactory. Since 2008, government inconsistency and mismanagement have hurt shareholder value and, as 81% shareholder, it reaps what it sows.

Espirito Santo:

Mr Hester’s departure was clearly against his wishes and it appears that Mr Osborne had different ideas as to how the bank should be run. The political wrangling has significantly impacted the franchise.

The Economist magazine:

[Osborne] shoved out RBS’s boss Stephen Hester, prompting a sharp fall in the bank’s shares. …It is politics not economics that underpins the government’s decision to privatise the banks.

The share price was 334p on 11th June and is now 275p (27/6/13) and continuing to fall against a rising market. That’s an 18% fall so far. Placed in context, that is roughly a £20 billion loss to the British taxpayer in the space of a couple of weeks. (see footnote)

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UNCUT: Labour and Unite: a little time-bomb

26/06/2013, 04:51:18 PM

by Rob Marchant

This morning, Uncut reported developments in the Falkirk selection fiasco; Labour’s investigation confirmed that there was an attempt by Unite to recruit additional members in order to fix the selection. For a major union to intervene behind the scenes in the running of a selection may not be unheard of, but the careless and obvious entryist manner in which Labour implies it was carried out was, frankly, breath-taking.

Last weekend, further reports surfaced in the Times and the Mail on Sunday regarding the that Labour advisors Blue State Digital were arm-twisted by “a senior Labour figure” to lean on their employee to pull out and make way for a Unite-backed candidate, or risk losing their contract. Whoever the figure turns out to have been certainly has some very awkward questions to answer.

Essentially in denial over what happened, Unite’s woefully inadequate, “er, it was the Blairites wot did it” rebuttal brings to a head a power struggle which has been simmering ever since Miliband took the party’s reins.

But perhaps just as interesting was a less explosive, but not-entirely-unconnected event which happened last weekend, before all this became public.

The People’s Assembly, a new left project developing the anti-cuts argument to anti-austerity in general, had its debut in central London. Its only front-bench Labour attendance was from Diane Abbott, which gave a good indication of its political leanings.

The demo was largely peopled by the usual suspects from the hard left, who were also – as blogger Stephen Bush, in attendance, tweeted – not exactly representative of the ethnically and culturally diverse British electorate. At the moment the Assembly it is not even a party (although this did happen later with Respect).

As a rule, it is much better that such people develop their political ideas outside the Labour party than infiltrate it, and it seems safe to conclude that the Assembly is pretty much an irrelevance in terms of any direct effect on British politics. As, it seems, is the Left Unity project, triggered by filmmaker Ken Loach’s March call for a new left politics. They are the last in a long line of wildly over-optimistic attempts to realign the left.

What does all this mean for Labour? On the one hand, nothing. There is no “people’s army” about to storm the barricades and take Labour out at the next general election – at most there may be a new far-left grouping which might take some votes away in key marginals (and these would be more likely to take votes away from the now-declining Respect than Labour).

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GRASSROOTS: What can Labour learn from the crisis in Australian Labor?

26/06/2013, 01:39:05 PM

by David Ward

Today Julia Gillard asked her colleagues to yet again decide between her and Kevin Rudd, and was removed in the same way she had removed him several years ago. But the soap opera aside it is worth here in Britain thinking about what the peculiar situation of a centre left party, having led the country through the global crisis in relative prosperity, heading towards an electoral wipeout against a Liberal party promising austerity.

Firstly, it shows the importance of avoiding internal squabbles. The ALP ditched its most successful politician since the 1990’s after only one negative poll. Rudd did not have the friendly relationship with his ALP colleagues, or backing amongst trade unions as Julia Gillard. One of Ed Miliband’s great successes has been to keep the party largely united, however the current troubles with selections in Falkirk and candidates for the European Parliament show there is no room for complacency.

Despite continued economic growth due to demand for Australian coal, uranium and iron ore, there has still been an unwinding of the New Labour style model set by Hawke and Keating in the 80s and 90s. Australian households are the second most indebted in the world after the UK and manufacturing has been weakened by high Australian Dollar. In parallel to our finance sector those who did not work or own shares in mining have seen higher prices while their earnings have not kept pace. Many people feel under pressure and the ALP is not offering a clear vision, often blown off course by media focus on issues like ‘boat people’.

Here Ed Miliband and Ed Balls have been talking of ‘pre-distribution’ and how we move beyond sharing the proceeds of growth, while others such as ‘In the Black Labour’ have contributed other ideas. Whatever the answer, it is clear that a narrative for change in the new world is needed. Recent polls showing only 30% trust Labour with the economy are a worry only two years away from a general election.

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UNCUT: Unite found guilty of entryism in Falkirk West, but who within Labour was complicit?

26/06/2013, 07:00:04 AM

by Atul Hatwal

Yesterday evening, as politicians and the media prepared for today’s debate on the spending review, Labour’s press office found the ideal time to bury some bad news.

The result of the NEC inquiry into the Falkirk West parliamentary selection was finally announced.

The party has decided that the surge in Unite members joining the local party was sufficiently suspicious to warrant action.

Falkirk West CLP has been placed in “special measures” and members who joined the party after March 12th last year (the date Eric Joyce MP announced he would be stepping down) will now not be eligible to participate in the parliamentary candidate selection, which rules out the new Unite caucus.

Effectively, the party has found Unite guilty of entryism.

It’s a major decision to accuse Labour’s biggest donor of packing a constituency with ringers and trying to subvert a parliamentary selection, but one that was inescapable given the facts.

Uncut understands that in the last three months of 2012, the membership of Falkirk West CLP increased by over half – from 200 members, it grew by 130 to 330.

These weren’t members attracted by the magic of Arnie Graf’s community organising, or an inspirational Ed Miliband speech.

They were shipped in, en masse, by Unite.

In October last year, Labour party HQ started to receive packs of membership forms accompanied by a single cheque, cut by the union, to pay for all of the members’ annual subscriptions.

As the forms piled up at head office in Brewers Green in London, party officials started to get nervous.

Normally, membership applications are processed within days and contact is quickly made by the party with the new member.

Not so for Falkirk West.

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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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INSIDE: More trouble in Liverpool Wavertree

24/06/2013, 01:09:39 PM

A new twist in the saga surrounding the suspension of Labour local councillor, Jake Morrison following his fall-out with the Labour MP Luciana Berger. Not happy with being suspended by the party, Jake has struck back: he’s left the party.

The Liverpool Daily Post has the full statement from young Jake, but the key paragraph is this,

“As a working class lad from Liverpool, who is determined to make a positive difference, I have decided to announce today that I will be standing for election in 2015. I will be standing as an independent candidate for Liverpool Wavertree in the upcoming general election.”

So, Luciana will have a rival at the next election, likely fighting from the left and with a substantial local profile. As is clear from his statement, this newly independent councillor will be drawing a strong contrast between “a working class lad from Liverpool,” and the less local, local MP.

Given the Labour majority in Wavertree at the last election was over 7,000, and was one of the few constituencies where Labour actually increased its majority compared to 2005, the challenge will likely prove quixotic.

But it will certainly be unwelcome for Labour and will have the second placed Lib Dems licking their lips in anticipation.

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UNCUT: 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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UNCUT: 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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GRASSROOTS: A progressive case for intervention in Syria

20/06/2013, 10:38:05 AM

by Sam Fowles

Few enough things unite the left of British politics. Indeed, much of our internal debate makes the Gallagher brothers look positively fraternal. But you can’t get a cigarette paper between us on Syria: Keep out. In this we’re joined by the Lib Dems, Tory backbenchers and, of course, Boris. A motley coalition to be sure, but certainly a wide ranging one.

It’s with some trepidation then, that I’m going to say: they’re all wrong (and David Cameron is right – I’m currently bracing myself for the inevitable implications on the British summer as hell freezes over).

The left should back intervention in Syria, even if this only means arming the opposition, for both practical and moral reasons. Practically, it’s the best way to limit the influence of al-Qaeda and bring the sides to the negotiating table. Morally, the West, and more particularly the left, needs to decide what we stand for and, and then protect those who are oppressed for standing up for the same thing.

The practical case against intervention is founded on “what ifs”; “What if it escalates?” “What if al-Qaeda get hold of the weapons?” Good policy makers must always consider the repercussions. But they must also take into account the situation as it stands. The fact is that the conflict has already escalated, al-Qaeda are already gaining a foothold and this is because of our failure to intervene, not in spite of it.

The death toll in Syria is estimated at 93 000. It’s no longer a matter of keeping the lid on the powder keg, it’s about what we do now that lid has been quite dramatically blown off. Introducing more powerful weapons into the conflict initially may have caused escalation but that’s already happened. Russia and Iran have already given Assad’s forces powerful weapons and the conflict has escalated accordingly, mostly at the expense of innocent civilians or opposition fighters.

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GRASSROOTS: We need to be bolder in pushing back against UKIP

19/06/2013, 04:05:48 PM

by Helen Mirfin-Boukouris

As a Labour candidate currently campaigning in the OMOV process, the matter of UKIP and how we confront their performance in the polls and recent by-elections frequently comes up.  I expect all Labour candidates now wonder what magic bullet there might be to confront their current upsurge beyond simply hoping that they will burn themselves out as they grow, diverge and crumble under the weight of their own vanity and incoherence.

But that is not good enough is it?  How can I, who have been in a Labour family all my life not stand up especially now and challenge offensive politics?

On the door step campaigning, I know of people who will tell you they are voting UKIP.  They are cross and are protesting in the familiar tradition of giving established parties a poke in the eye for letting them down be it because of losing a job, losing weekly wheelie bin services, waiting longer in hospital. Watching people who look different to them taking advantage of the same services and feeling somehow that they are being taken for a ride. Nothing the parties say helps them see a better future while paying more again and again.

UKIP come along and say “enough! we shall speak for you.” And it does not really matter what the detail is that they espouse because it is working.  It is frustrating to admit too.  However, I did not spend the last twenty years in the Labour Party to let people get away with this and do nothing.

The UKIP message works because it is a personal message.  It is simple, there is blame and it is easy to remember. If you are outraged by politicians, and those seen as outsiders, getting the better of people who are losing their livelihoods and their futures, it works.

So, we need to make politics personal and show that Labour values matter, using language and facts that resonate with peoples’ daily lives.

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