Selling the Royal Mail, and the country that banned fee-paying schools

Finland, where fee-paying schools are illegal and league tables don't exist, does consistently well in educational surveys and produces some of the cleverest children. Plus: a magic formula for regulation.

Even by the usual standards of Tory privatisations, the sell-off of Royal Mail is an outrage. Ministers have offered the shares at a maximum of £3.30 each, valuing the company at £3.3bn. As I write, analysts reckon that is at least £1bn below the true value and predict that shares will sell at £4 once they go on the market. Even if the analysts prove wrong in the short term, they are unlikely to be wrong about the medium-term prospects for Royal Mail. The shares are a bargain, offered at taxpayers’ expense.

How can a government be so generous when it is cutting benefits, supposedly to repair the public finances? Why is it giving City banks and hedge funds, for which most shares are reserved, a free lunch? Why is it, in effect, transferring money from poor folk who can’t meet weekly food, fuel and rent bills to people who have enough spare cash at least to buy the shares for a few days? Dare I suggest it’s a straightforward bribe to potential Tory donors and voters?

George Osborne fusses about the UK’s credit rating, arguing that he must reduce debt if the government is to continue borrowing cheaply. Someone should explain to him that governments can borrow because they hold assets such as Royal Mail. He accuses Labour of failing to repair the roof while the sun was shining. He’s dismantling it in the middle of a downpour.

Press charges

To break the interminable deadlock over press regulation – the Privy Council has rejected the newspapers’ proposal and is now trying to adapt the Royal Charter to its tastes – can we have a dummy run?

Let both sides set up their complaints commissions. Give them two cases: the Daily Mail and its treatment of Ralph Miliband; the Sun and its treatment of the mentally ill. (The latter, in case you missed it, headlined “1,200 people killed by mental patients” over a story that, according to a Telegraph blogger, was not only “irresponsible and dangerous” but also “nonsense from top to bottom”.) Let their commissioners pass judgement and recommend penalties, if any. The Mail should get a mild reprimand for the headline “The man who hated Britain”. The Sun should be required to publish a prominent correction and clarification, pointing out that the true figure should have been 738, not 1,200; that, in an average year, less than 0.005 per cent of the 1.2 million people in touch with hospital mental health services kill anyone; and that the danger of their doing so is falling, not rising.

The one that comes up with the above answers –which I believe most people would accept as the right ones – would be declared the winner.

For Pete’s sake

I welcome the promotion of the cerebral Tristram Hunt to shadow education secretary. But the idea that he’s part of an anti-Blairite coup, dictated by Unite’s Len McCluskey, is laughable. When I edited the NS, we published several pieces from Hunt, then unknown. I was told he had written to a friend saying “I owe so much to Peter”, which seemed a refreshing change from contributors who griped about our modest fees. Further inquiries, however, revealed that the reference was to Peter Mandelson, Hunt’s political mentor.

Great Finnish

“England’s young people near bottom of global league table for basic skills,” scream the headlines, and that’s just the Guardian website. The source is an OECD survey of adult skills in industrialised countries. What stands out is that, while English adults as a whole are around average when tested on literacy and numeracy, those aged 16 to 24 are behind even their Polish, Estonian and Slovakian contemporaries. Tories blame the usual suspects: comprehensive schools, lack of academic rigour, Labour governments.

Many comparisons are made with South Korea, where young adults score far better than their elders, while here there’s hardly any difference. Fewer comparisons are made with Finland, which, as usual in educational surveys, comes at or near the top in everything. “Older Finns,” the OECD reports, “perform at around the average . . . while younger Finns are, together with young adults from Japan, Korea and the Netherlands, among today’s top performers.”

Finland has no selective schools, no feepaying schools (they’re illegal), no streaming within schools, no league tables, no external exams until the age of 18, no national curriculum beyond broad outlines. Before the 1970s, its schools were similar to ours, with grammar schools, private schools and so on. Finland also has one of the most equal income distributions among the 22 countries in the survey; we have the most unequal, next to the United States, which also does badly in the tests.

I leave you to draw conclusions.

Finnish children on their second day at school in Vaasa, Finland. Image: Getty

Peter Wilby was editor of the Independent on Sunday from 1995 to 1996 and of the New Statesman from 1998 to 2005. He writes the weekly First Thoughts column for the NS.

This article first appeared in the 11 October 2013 issue of the New Statesman, Iran vs Israel

Photo: Getty
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Unite stewards urge members to back Owen Smith

In a letter to Unite members, the officials have called for a vote for the longshot candidate.

29 Unite officials have broken ranks and thrown their weight behind Owen Smith’s longshot bid for the Labour leadership in an open letter to their members.

The officials serve as stewards, conveners and negotiators in Britain’s aerospace and shipbuilding industries, and are believed in part to be driven by Jeremy Corbyn’s longstanding opposition to the nuclear deterrent and defence spending more generally.

In the letter to Unite members, who are believed to have been signed up in large numbers to vote in the Labour leadership race, the stewards highlight Smith’s support for extra funding in the NHS and his vision for an industrial strategy.

Corbyn was endorsed by Unite, Labour's largest affliated union and the largest trades union in the country, following votes by Unite's ruling executive committee and policy conference. 

Although few expect the intervention to have a decisive role in the Labour leadership, regarded as a formality for Corbyn, the opposition of Unite workers in these industries may prove significant in Len McCluskey’s bid to be re-elected as general secretary of Unite.

 

The full letter is below:

Britain needs a Labour Government to defend jobs, industry and skills and to promote strong trade unions. As convenors and shop stewards in the manufacturing, defence, aerospace and energy sectors we believe that Owen Smith is the best candidate to lead the Labour Party in opposition and in government.

Owen has made clear his support for the industries we work in. He has spelt out his vision for an industrial strategy which supports great British businesses: investing in infrastructure, research and development, skills and training. He has set out ways to back British industry with new procurement rules to protect jobs and contracts from being outsourced to the lowest bidder. He has demanded a seat at the table during the Brexit negotiations to defend trade union and workers’ rights. Defending manufacturing jobs threatened by Brexit must be at the forefront of the negotiations. He has called for the final deal to be put to the British people via a second referendum or at a general election.

But Owen has also talked about the issues which affect our families and our communities. Investing £60 billion extra over 5 years in the NHS funded through new taxes on the wealthiest. Building 300,000 new homes a year over 5 years, half of which should be social housing. Investing in Sure Start schemes by scrapping the charitable status of private schools. That’s why we are backing Owen.

The Labour Party is at a crossroads. We cannot ignore reality – we need to be radical but we also need to be credible – capable of winning the support of the British people. We need an effective Opposition and we need a Labour Government to put policies into practice that will defend our members’ and their families’ interests. That’s why we are backing Owen.

Steve Hibbert, Convenor Rolls Royce, Derby
Howard Turner, Senior Steward, Walter Frank & Sons Limited
Danny Coleman, Branch Secretary, GE Aviation, Wales
Karl Daly, Deputy Convenor, Rolls Royce, Derby
Nigel Stott, Convenor, BASSA, British Airways
John Brough, Works Convenor, Rolls Royce, Barnoldswick
John Bennett, Site Convenor, Babcock Marine, Devonport, Plymouth
Kevin Langford, Mechanical Convenor, Babcock, Devonport, Plymouth
John McAllister, Convenor, Vector Aerospace Helicopter Services
Garry Andrews, Works Convenor, Rolls Royce, Sunderland
Steve Froggatt, Deputy Convenor, Rolls Royce, Derby
Jim McGivern, Convenor, Rolls Royce, Derby
Alan Bird, Chairman & Senior Rep, Rolls Royce, Derby
Raymond Duguid, Convenor, Babcock, Rosyth
Steve Duke, Senior Staff Rep, Rolls Royce, Barnoldswick
Paul Welsh, Works Convenor, Brush Electrical Machines, Loughborough
Bob Holmes, Manual Convenor, BAE Systems, Warton, Lancs
Simon Hemmings, Staff Convenor, Rolls Royce, Derby
Mick Forbes, Works Convenor, GKN, Birmingham
Ian Bestwick, Chief Negotiator, Rolls Royce Submarines, Derby
Mark Barron, Senior Staff Rep, Pallion, Sunderland
Ian Hodgkison, Chief Negotiator, PCO, Rolls Royce
Joe O’Gorman, Convenor, BAE Systems, Maritime Services, Portsmouth
Azza Samms, Manual Workers Convenor, BAE Systems Submarines, Barrow
Dave Thompson, Staff Convenor, BAE Systems Submarines, Barrow
Tim Griffiths, Convenor, BAE Systems Submarines, Barrow
Paul Blake, Convenor, Princess Yachts, Plymouth
Steve Jones, Convenor, Rolls Royce, Bristol
Colin Gosling, Senior Rep, Siemens Traffic Solutions, Poole

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.