The Eric Morecambe government

All the right things in the wrong order.

One of the great comedy lines of all time is Eric Morecambe’s retort to Andre Previn’s complaint about his inability to play Greig’s piano concerto. Grabbing Previn by the lapels he says, “I am playing all the right notes, just not necessarily in the right order”.

This might well be the motto for the government’s efforts to get the economy growing. They are doing some of the right things, just not necessarily in the right places and not really in the right quantities and crucially not with the right focus. Take the variety of state-sponsored lending schemes launched in the last year. When Project Merlin failed to magic up the boost in small business lending that it was expected to, the government launched (or relaunched) the Small Firm Loan Guarantee Scheme (SFLGS), which according to the department for business, was apparently successful, although it failed to get the economy really moving. Three months after it was launched the SFLGS was effectively replaced by the credit-easing scheme billed as Funding for Lending, which would allow banks to borrow at a cheaper rate.

Fast forward another two months and business secretary Vince Cable was out and about this week promoting an industrial strategy that included a suggestion all this may soon be collected together under the umbrella of some form of British business bank.

The details — whether it would include new cash (unlikely), who would be picking the schemes, sectors and firms to invest in and so on — weren’t included. It was a policy announcement coalition style, in effect little more than a floating of an idea to judge its credibility. A business bank in itself sounds like a sensible idea, although simply rebranding lending schemes or creating a fancy new website to house them all in won’t make businesses any hungrier for lending.  

Until that demand for borrowing returns (and to some extent that appetite will require the banks to drop some of the more onerous conditions and rates they are placing on lending at the moment), supply side measures will continue to have little impact.

Some commentators immediately seized on the problematic issue of governments picking winners and images of 1970s British Leyland plants were rolled out again to illustrate why this is such a bad thing. The real problem of course is not picking winners, but rather investing in losers. However, picking sectors seems to be more acceptable. Here, too, there are signs the government is playing the wrong tune. While freeing up planning regulations might help the housing sector, allowing a few homeowners to get the eight-foot conservatory they always dreamed of won’t pull us out of recession.

It is welcome to see a broader acceptance of the fact that there is a role for what shadow business secretary Chuka Umuna calls active government. But this activity will naturally involve selecting sectors to back. One sector that too often gets overlooked as a driver for growth is professional services. What role can the professions play in getting what has become known in some parts of Westminster as “this growth thing” moving?

To address just this question, the Professional and Business Services Group (PBSG) has produced an excellent report Seizing Opportunities for Growth, summarising the work of the sector and suggesting what needs to happen to keep things growing in the right way. The sector remains a major contributor to the UK economy, accounting for roughly 13 per cent of all economic activity, employing 3.5 million people and producing £167bn of GDP in 2010. Crucially it is an international business and accounts for 14 per cent of UK exports and returned a surplus on the UK’s current account of £28.5bn in 2010.

But the report makes it clear that despite the success of the sector there is more than can and must be done to protect and enhance this sector. Chief among these is the expansion of digital infrastructure to create what it calls “smart cities” and the opening up of government data for commercial exploitation and innovation.

The crucial point is that if we get the underlying structures, skills and systems right, then there would be less need to worry about government picking sectors or spotting winners, because everyone would be able to benefit from a more productive environment.

This article first appeared in economia.

Morcambe and Wise. Photograph: Getty Images

Richard Cree is the Editor of Economia.

Photo: Getty
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From war and slavery to prison – life inside an immigration detention centre

David spent five years locked in a house in Britain. Then he spent two years in immigration detention centres. 

Visitors at the immigration detention centre are met by Sid the Sloth, balancing an acorn just as he does in the family film Ice Age. The picture is one of the brightly coloured murals adorning the otherwise bare walls of the visitor's entrance. The lurid paintwork sits in stark juxtaposition to the barbed wire outside, and the metal detector and eight sets of doors which visitors must pass through.

It is a thin veneer which fails to mask a system containing institutionalised abuse from top to bottom. It isn't surprising, then, that one of the conditions of my visit was not to identify the centre - the volunteers I joined fear having visiting rights withdrawn by the company in charge.

Once inside I met Sivan, a 32-year-old Kurdish asylum seeker who came to Britain clinging to the underside of a lorry. He had been tortured by the Turkish authorities. For Sivan the children’s cartoons in the visitor’s entrance held a particularly cruel irony. Detainees at the centre are not allowed smartphones, and with no access to email Sivan’s wife, also a Kurdish asylum seeker, is unable to send her husband pictures of their first child. The couple have not seen each other in the two months since Sivan was detained. That day, in the visitor’s lounge, Sivan saw his son for the first time. Holding photographs of the little boy in his hands, Sivan’s face momentarily lit up as it split with joy and then sorrow.

Sivan does not know when he will be able to see his young family - or if they will ever be able to be together.

Across Britain more than 3,000 people, many fleeing war and torture, are locked up indefinitely in immigration centres. They arrive in Britain seeking refuge. But are shut away in privately-run prisons before being forcibly removed. Often with little or no English, detainees rely on volunteers to help them navigate Britain’s complex immigration system.

At the volunteer hub, which helps 80 of the 500 men in the centre each week, I met former detainees who all had one thing in common: the mental torture that indefinite detention inflicts. Like David, a quiet Ghanaian who has never really been free. He was kept as a slave on a plantation until traffickers brought him to Britain aged 13. Here he spent five years locked in a house, when not being forced to work 14-hour days in a warehouse. He finally escaped only to spend 11 years waiting for his asylum application to be processed - still ongoing despite clear medical evidence of his torture during imprisonment. He has spent two years in immigration detention centres. And as he waits he now has to register his presence with the authorities every Tuesday. He is terrified that when he does he won’t return to his four-year-old daughter, but instead be returned to captivity by the Home Office, without explanation.

Another former detainee Daniel, a tailor from Iran who fled five years ago, spent five months in detention when he first arrived in Britain. He describes being locked up with no time limit as "one of the worst times of my life", and still needs anti-depressants. “It really damaged my mind,” Daniel told me. “You don’t know when the process will be finished and you’re just waiting, waiting. You don’t know what’s going on.”

I heard from detainees who have had medical appointments they have waited months for cancelled because the centre wouldn’t pay for transport. Some kept three in a room with a toilet between the beds. Others woken in the middle of the night to see their friend dragged from their bed and assaulted by guards before being taken for deportation. Detainees employed to clean the centre for an exploitative £3 a day, just to afford necessities like toiletries. Or they stay trapped by fear in their rooms because they are afraid of the ex-prisoners, many who have committed serious crimes, locked up around them. I heard too of solitary confinement used routinely as a punishment for those considered not to be compliant. More than one detainee said immigration centres are worse than prisons. And they are right.

Britain is the only place in Europe which still locks people up with no time limit. Despite the government’s promise to reduce both the numbers - and the time spent there - progress is still far too slow. Last year 27,819 people entered detention. Some have been there more than five years.

Barely a week passes without a new report of violence or suicide or rape or abuse, inflicted on those who came to our country for help. The government should hang its head in shame. The Home Office must stop turning a blind eye to what it must know what is happening to those in its care. It’s clear that this is a broken and barbaric system. After seeing it for myself, I’m more convinced than ever that the use of indefinite detention has to end.

Names have been changed to protect the identities of those interviewed for this article.

Jon Bartley is the co-leader of the Green Party.