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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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump