Posts Tagged ‘Rob Williams’

HS2 should be shunted to the sidings

01/10/2013, 02:55:36 PM

by Rob Williams

The ill-conceived HS2 project loses more support by the day. The Public Accounts Committee recently published a report which says it is beset by spiralling costs, a lack of expertise and unrealistic delivery timetables. In the summer, Peter Mandelson and former Transport Secretary Alistair Darling argued that this is one infrastructure scheme that really deserves to hit the buffers.

Now, shadow treasury chief secretary Rachel Reeves, said Labour would cancel it “if we don’t think it’s good value for money and costs continue to rise”.

The economic case for HS2, always rather weak, gets worse by the week,. The cost of this already expensive project has been revealed to have gone up by £10 billion to £42 billion. And this excludes the actual trains to run on the line, which would add another £7 billion.

Perhaps this is why the government doesn’t talk too much about the Business Case for HS2 any more (it is now close to 1:1, which means, basically, that there is no benefit). And much of that benefit is based on the ridiculous assumption that business travellers do no work on trains.

So now Patrick McLoughlin says cutting 20 minutes off journey times between London and Birmingham is “almost irrelevant. It should always have been about capacity.” Well, yes. Increasing capacity on the railways is certainly necessary but the trouble is, with HS2 increased capacity will take a long, long time to deliver. Phase 1 of HS2 on its own – the London to Birmingham line – will not be running until 2026 at the very earliest. We are going to have a long wait for the next high speed train.

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Ed Miliband should reclaim Adam Smith for the left

24/09/2013, 11:26:26 AM

by Rob Williams

Last year in his speech to the Labour conference in Manchester, Ed Miliband laid claim to rebuilding Britain as One Nation. The Labour leader cited as his inspiration a former Conservative Prime Minister, Benjamin Disraeli, who made a famous speech on One Nation Conservatism in Manchester’s Free Trade Hall which, reflecting the spirit of the times, is now a luxury hotel.

Miliband has hit the nail on the head on a number of big ideas. He understands that the squeezed middle, as well as the low paid, are feeling increasingly insecure, whatever claims of economic recovery there may be.

So this year, Miliband should go further. It is time for the left to reclaim the economist Adam Smith as one of their own. Adam Smith, of course, is usually considered to be the founding father of right-wing free market economics. In the UK, the Adam Smith Institute is reliably one of the most outrageous think tanks, an outrider of Thatcherism before it was invented.

Adam Smith was born in Scotland in 1723, and is usually seen as the founder of modern economics. The usual modern conservative’s view of Adam Smith is similar to the average 1970s socialist’s approach to Karl Marx. They probably haven’t read any of his work, but simply regurgitate someone else’s description of his writings. There is a persuasive argument that the Right have stolen Adam Smith’s identity in an audacious coup.

An increasing number of thinkers believe that Smith was a radical critic of the establishment of his day. They argue that, for Smith, prosperity was measured by a rise in living standards for the working class which sets Smith apart from other free market advocates who believed a low-wage economy was the key to economic development. Smith believed that economic policy should be secondary to moral and ethical concerns such as equality.

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