How on earth is my religion to blame for Asian gangs and sex abuse?

Melanie Phillips's latest outburst against Islam and Muslims is opportunistic and goes beyond the pale.

So there I was, on a Monday morning, in a rather good mood, having had Ed Miliband give my forthcoming book about him a free plug, live on Sky News and BBC News, and still recovering from the shock of having Norman Tebbit (yes, that Norman Tebbit!) aim some warm words in my direction in a blog post on the Telegraph website about British Muslims; a post in which he wisely concludes:

There are Muslims out there seeking an accommodation with our society. They may not be able to defeat the Islamist fanatics, but we would be foolish to reject a hand held out in understanding and reconciliation.

But then I turned to the Daily Mail and, specifically, to Melanie Phillips. The headline?

While Muslim sexual predators have been jailed, it is white Britain's hypocritical values that are to blame

My first response? Can you imagine a headline that said, "While Jewish murderers have been jailed . . ." or "While Hindu bank robbers have been jailed . . ."? When was it that we first started classifying crimes and criminals by religious affiliation?

Phillips, of course, has long suffered from a sort of Muslims Tourette's syndrome -- she refers to Muslims 18 times in her column today. From the outset, she makes clear that she plans to go beyond Jack Straw, Leo McKinstry and others who have fallen over each other to make spurious arguments about the "cultural" factors behind the so-called on-street grooming of young girls for sex by criminal gangs. Nope, Mel has the dastardly religion of Islam in her sights:

Police operations going back to 1996 have revealed a disturbingly similar pattern of collective abuse involving small groups of Muslim men committing a particular type of sexual crime.

Sorry, but I have to ask again: what has the assumed faith of these men got to do with the crime itself? I must have missed the chapter of the Quran that encourages Muslim men to go out and ply young girls with alcohol (!) and drugs and then pimp them out to older men for sex. While I disagree with Straw, McKinstry, Yasmin Alibhai-Brown, David Aaronovitch and others who have speculated about the various cultural factors behind these crimes, I'm not that surprised that "culture" has raised its ugly head -- and I, for one, would welcome some peer-reviewed, nationwide studies of this particular crime and the perpetrators of it. But religion??

Phillips writes:

For while, of course, most Muslims repudiate any kind of sexual crime, the fact remains that the majority of those who are involved in this particular kind of predatory activity are Muslim.

First, we don't know that's the case. Sorry. But we don't. You can't extrapolate from such a small sample (50 out of 56 men) in one corner of the country. That's also the view, I might add, of the two UCL academics whose research was cited by the Times in its original story last Wednesday. In a letter to the Times published on 7 January, they wrote:

While we were heartened by the open and insightful discussion of the crime, we are concerned that limited data can be over-extended to characterise an entire crime type, in particular, in terms of race and gender. The identity of victims and offenders identified to date, primarily in the Midlands and the north of England, may misrepresent this crime on a national level.

In our work, based on two major police operations, we found that perpetrators were predominantly but not exclusively of Pakistani descent: several other ethnicities featured, too. Only through nationwide scoping studies can ethnicity be reliably established. If we allow ourselves to be blinded by this emergent and untested racial stereotype, we risk ignoring similar crimes perpetrated by offenders of other ethnicities.

It is also worth remembering that the "fact remains" that the "majority of those who are involved in" internet child sex offences (95 per cent) are white, as are the majority of prisoners (80 per cent) behind bars for sex crimes. And, as Chris Dillow notes:

Straw gives us no statistics to justify his claim.
Those that do exist seem to undermine his claim.
Table 5.4b of this pdf shows that, in the latest year for which we have data, Lancashire police arrested 627 people for sexual offences. 0.3% of these were Pakistanis. That's two people. 85.5% were white British. In Lancashire, there are 1,296,900 white Brits and 45,000 Pakistanis. This means that 4.163 per 10,000 white Brits were arrested for a sex crime, compared to 0.44 Pakistanis. If you're a journalist, you might say that the chances of being arrested for a sex crime are nine times greater if you're white than Pakistani. If you're a statistician, you might say they are 0.037 percentage points greater.

So what conclusions should we draw about white people from such statistics? Has Melanie checked with her white husband Joshua or her white son Gabriel as to why white men are so much more likely to commit sex crimes in this country than men from non-white, minority communities? Is this a problem of "white culture" or Judeo-Christian culture? Why the "conspiracy of silence"?

Phillips continues:

For these gang members select their victims from communities which they believe to be 'unbelievers' -- non-Muslims whom they view with disdain and hostility.

You can see that this is not a racial but a religious animosity from the fact that, while the vast majority of the girls who are targeted are white, the victims include Sikhs and Hindus, too.

"Religious animosity"? According to the Times's own research, several victims of a British Pakistani gang in an unnamed northern city were Bangladeshi Muslim girls. So much for Islamic solidarity among Asian gangs. And has Phillips, or Straw, ever been to Pakistan? Don't they know that young girls are sold into sexual slavery in Pakistan, too, where they all happen to be Muslims, as do the perpetrators of this heinous crime?

The only "fact" that we learn from Phillips's rant is that she is willing to find an Islamic angle to any story, no matter how horrific the story, no matter how tenuous the angle. For someone who rails against anti-Semitism under every bed and foams at the mouth at the first sight of journalists or bloggers stereotyping or generalising about Jews or Israelis to then make such sweeping and lazy assumptions about Muslims is particularly hypocritical and, I would add, unforgivable.

Since the Times story broke last week, just two people have decided to "Islamise" it and thereby exploit it for their own Muslim-baiting agendas: Nick Griffin and Melanie Phillips. Shame on them both.

UPDATE:

On a side note, I should point out that I am the co-author of the Ed biography that I referred to in passive, above, and that is provisionally entitled Ed: Ed Miliband and the Remaking of the Labour Party. My co-author on this project is my former New Statesman colleague, James Macintyre. You can read more about our forthcoming book here.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation