The fags and booze crackdown that wasn't: or why we need a register of lobbyists

Why can’t we see how much is being spent by private healthcare companies to push for NHS reform, why can’t we see which companies thought the Work Programme was a good idea?

Senior Tories are determined to axe the “Lib Dem hobbyhorse” of a statutory register of lobbyists . . . one Tory source said the proposal was effectively dead as ministers focused on “big issues” instead of devoting resources to an idea cherished only by the Liberal Democrats.

“We need to tackle the issues that the country cares about such as immigration, benefits and the economy,” he said. “It is ironic that Nick Clegg is gunning for the lobbying industry when he was a lobbyist once upon a time.”
 
Now, about this “next big scandal waiting to happen”. Bluntly, one has to wonder at what point our Prime Minister will deem said scandal to have happened. The Queen’s Speech of 2013 was most notable not for what was in it, but for what wasn’t. 
 
For a start, lobbying reform wasn't there. But that wasn't the thing which caused a stink: that was the issue of plain cigarette packaging. It seems a pretty obvious policy to adopt. Rightly, the government is keen to make smoking a frowned-upon, niche activity on a par with watching hentai porn or Morris dancing, and having upped taxes and hidden the packets in supermarkets, this seemed the next logical step. I’m certainly OK with it, and I speak as an enthusiastic social smoker. (I only smoke when I'm out drinking. And quite often when I'm not. Anyway.)
 
Maybe you don't like the idea, but that's not the point. The point is that it was suddenly binned. Why? Because Ukip had been selling itself as the pro-smoking, or if you prefer, pro-lung cancer party? Or was it more to do with lobbying from the tobacco industry? Department of Health minutes show that lobbyists had met government officials in January and February and told them that the industry would have to source its packaging from abroad, resulting in job losses. Other arguments included the contention that it would boost the trade in illicit cigarettes - although commercial sensitivity laws mean we can’t actually see the workings behind this.

Fine. The tobacco lobbyists have as much of a right to put forward their view as anyone else. (For more on this, Thank You For Smoking is a brilliant film, by the way). But then the links between the Prime Minister’s aide, Lynton Crosby, and tobacco firms were exposed - and challenged by a Tory MP, no less. The PM’s spokesman said Crosby had no impact on the decision, but don’t the quotes in that FT story sound rather like his lines in this Mirror piece about “getting the barnacles off the boat”? This, incidentally, is the old lie that we should forget about this - and lobbying reform itself, and gay marriage for that matter - because the Government’s like me trying to walk and send a message on its phone: it can't try to do too many things at once or it'll end up inadvertently sending its mother a sex text before walking into a lamppost.

And of course, it wasn’t just tobacco packaging that was conspicuous by its absence. The Government seemed all excited about a minimum unit price for alcohol a while back - look, it even made a commitment on it - but that’s died a death too. So which argument won the day? Of course there’s a debate to be had about punishing responsible drinkers, but how much weight did threats from the alcohol industry to pull out of the government’s Public Health Responsibility Deal carry? Should we take Jeremy Hunt’s word that it’s been delayed solely due to a legal dispute in Scotland?

Here’s the uncomfortable truth about lobbyists. We need them. Many MPs will freely admit that they couldn’t do their jobs without the information they provide. They highlight the concerns of charities, businesses and individuals who otherwise wouldn’t be heard. But the problem is that without a statutory register, a compulsory code of conduct, and an obligation on all politicians and civil servants to declare their meetings, the industry simply comes across as sordid. Countless Government decisions appear suspicious, when they may very well not be.

Let’s stick with the tobacco industry. Last year we learned that JapanTobacco International has wined and dined 21 MPs, of whom 19 were Conservative. Crispin Blunt had gone to see England play India (£694), and Philip Hammond and his wife had been taken to Chelsea Flower Show (£1,132.80). This raises a serious question, quite apart from who in God’s name would pay over a grand to look at some plants. Given the vast sums of money being splurged on influencing the views of our elected leaders, why aren’t we kicking up a bigger stink about transparency? Why can’t we see how much is being spent by private healthcare companies to push for NHS reform, why can’t we see which companies thought the Work Programme was a good idea?

The Alliance for Lobbying Transparency has made a couple of very good points on this. First, this isn’t a left/right wing issue. Look at how lobbyists in favour of HS2 have worked to “shit up” opponents of the scheme - many of them Conservative. And secondly, the Government’s plans, as they currently stand, are inadequate.

We have to tackle this issue, for the good of our democracy. Lynton Crosby would presumably tell you all this is a distraction from the big issues. But then Lynton Crosby would say that, wouldn’t he? One can only hope that’s a response echoed by our ministers. And we shouldn't just have to hope.

 

A smoker. Photo: Getty

Alan White's work has appeared in the Observer, Times, Private Eye, The National and the TLS. As John Heale, he is the author of One Blood: Inside Britain's Gang Culture.

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North Yorkshire has approved the UK’s first fracking tests in five years. What does this mean?

Is fracking the answer to the UK's energy future? Or a serious risk to the environment?

Shale gas operation has been approved in North Yorkshire, the first since a ban introduced after two minor earthquakes in 2011 were shown to be caused by fracking in the area. On Tuesday night, after two days of heated debate, North Yorkshire councillors finally granted an application to frack in the North York Moors National Park.

The vote by the Tory-dominated council was passed by seven votes to four, and sets an important precedent for the scores of other applications still awaiting decision across the country. It also gives a much-needed boost to David Cameron’s 2014 promise to “go all out for shale”. But with regional authorities pitted against local communities, and national government in dispute with global NGOs, what is the wider verdict on the industry?

What is fracking?

Fracking, or “hydraulic fracturing”, is the extraction of shale gas from deep underground. A mixture of water, sand and chemicals is pumped into the earth at such high pressure that it literally fractures the rocks and releases the gas trapped inside.

Opponents claim that the side effects include earthquakes, polluted ground water, and noise and traffic pollution. The image the industry would least like you to associate with the process is this clip of a man setting fire to a running tap, from the 2010 US documentary Gasland

Advocates dispute the above criticisms, and instead argue that shale gas extraction will create jobs, help the UK transition to a carbon-neutral world, reduce reliance on imports and boost tax revenues.

So do these claims stands up? Let’s take each in turn...

Will it create jobs? Yes, but mostly in the short-term.

Industry experts imply that job creation in the UK could reflect that seen in the US, while the medium-sized production company Cuadrilla claims that shale gas production would create 1,700 jobs in Lancashire alone.

But claims about employment may be exaggerated. A US study overseen by Penn State University showed that only one in seven of the jobs projected in an industry forecast actually materialised. In the UK, a Friends of the Earth report contends that the majority of jobs to be created by fracking in Lancashire would only be short-term – with under 200 surviving the initial construction burst.

Environmentalists, in contrast, point to evidence that green energy creates more jobs than similar-sized fossil fuel investments.  And it’s not just climate campaigners who don’t buy the employment promise. Trade union members also have their doubts. Ian Gallagher, Secretary of Blackburn and District Trade Unions Council, told Friends of the Earth that: “Investment in the areas identified by the Million Climate Jobs Campaign [...] is a far more certain way of addressing both climate change and economic growth than drilling for shale gas.”

Will it deliver cleaner energy? Not as completely as renewables would.

America’s “shale revolution” has been credited with reversing the country’s reliance on dirty coal and helping them lead the world in carbon-emissions reduction. Thanks to the relatively low carbon dioxide content of natural gas (emitting half the amount of coal to generate the same amount of electricity), fracking helped the US reduce its annual emissions of carbon dioxide by 556 million metric tons between 2007 and 2014. Banning it, advocates argue, would “immediately increase the use of coal”.

Yet a new report from the Royal Society for the Protection of Birds (previously known for its opposition to wind farm applications), has laid out a number of ways that the UK government can meet its target of 80 per cent emissions reduction by 2050 without necessarily introducing fracking and without harming the natural world. Renewable, home-produced, energy, they argue, could in theory cover the UK’s energy needs three times over. They’ve even included some handy maps:


Map of UK land available for renewable technologies. Source: RSPB’s 2050 Energy Vision.

Will it deliver secure energy? Yes, up to a point.

For energy to be “sustainable” it also has to be secure; it has to be available on demand and not threatened by international upheaval. Gas-fired “peaking” plants can be used to even-out input into the electricity grid when the sun doesn’t shine or the wind is not so blowy. The government thus claims that natural gas is an essential part of the UK’s future “energy mix”, which, if produced domestically through fracking, will also free us from reliance on imports tarnished by volatile Russian politics.

But, time is running out. Recent analysis by Carbon Brief suggests that we only have five years left of current CO2 emission levels before we blow the carbon budget and risk breaching the climate’s crucial 1.5°C tipping point. Whichever energy choices we make now need to starting brining down the carbon over-spend immediately.

Will it help stablise the wider economy? Yes, but not forever.

With so many “Yes, buts...” in the above list, you might wonder why the government is still pressing so hard for fracking’s expansion? Part of the answer may lie in their vested interest in supporting the wider industry.

Tax revenues from UK oil and gas generate a large portion of the government’s income. In 2013-14, the revenue from license fees, petroleum revenue tax, corporation tax and the supplementary charge accounted for nearly £5bn of UK exchequer receipts. The Treasury cannot afford to lose these, as evidenced in the last budget when George Osborne further subsidied North Sea oil operations through increased tax breaks.

The more that the Conservatives support the industry, the more they can tax it. In 2012 DECC said it wanted to “guarantee... every last economic drop of oil and gas is produced for the benefit of the UK”. This sentiment was repeated yesterday by energy minister Andrea Leadsom, when she welcomed the North Yorkshire decision and described fracking as a “fantastic opportunity”.

Dependence on finite domestic fuel reserves, however, is not a long-term economic solution. Not least because they will either run out or force us to exceed international emissions treaties: “Pensions already have enough stranded assets as they are,” says Danielle Pafford from 350.org.

Is it worth it? Most European countries have decided it’s not.

There is currently no commercial shale-gas drilling in Europe. Sustained protests against the industry in Romania, combined with poor exploration results, have already caused energy giant Chevron to pull out of the country. Total has also abandonned explorations in Denmark, Poland is being referred to the European Court of Justice for failing to adequately assess fracking’s impact, and, in Germany, brewers have launched special bottle-caps with the slogan “Nein! Zu Fracking” to warn against the threat to their water supply.

Back in the UK, the government's latest survey of public attitudes to fracking found that 44 per cent neither supported nor opposed the practice, but also that opinion is gradually shifting out of favour. If the government doesn't come up with arguments that hold water soon, it seems likely that the UK's fracking future could still be blasted apart.

India Bourke is the New Statesman's editorial assistant.