Where next for Ed? Mehdi Hasan on a fraternal dispute

The Labour leader ended a bad January on a high - and then brother David intervened.

Ed Miliband had a bad, bad January - but ended on a high. Having fallen behind in the polls, been attacked by his guru, got his message mixed up on cuts and gaffed on Twitter, the final few days of the month saw him help force RBS chief executive Stephen Hester turn down his million-pound bonus and put Cameron on the defensive, and then put in a strong performance against the Prime Minister in Tuesday's Commons debate on Europe ("Ed Miliband was very good," admitted the frequently-critical Simon Hoggart) and at PMQs, on the first day of February, on the subjects of bank bonuses and NHS reform .

Attacking the bankers - over excessive bonuses, lack of transparency, failure to lend and the rest - has proved to be a boon for Ed M. Recent polls show Labour has slashed the Tories' 5-point lead and I suspect we'll continue to see a mild uptick in the party's poll rating in the coming days and weeks. Why? Because, in the current climate, left-populism works. The public wants the political elites to take on the financial elites. It's not rocket science - and I'm not sure how many times some of us have to make this rather simple and obvious point to a cautious Labour leadership.

In October 2010, for example, after Ed M failed to make any public comment whatsoever on a 55 per cent jump in pay for FTSE 100 executives, I wrote:

So, Ed, where are you? Still running from the "Red" tag? Let's be clear. There is nothing "red" about objecting to reckless, irresponsible and unfair pay rises and telephone-number salaries. In fact, the public would be on your side if you did - polls show voters support a high pay commission and higher taxes on bonuses and object to the growing gap between rich and poor in modern Britain.

Eighteen months later, Ed M is starting to reap the rewards of "objecting to reckless, irresponsible and unfair pay rises and telephone-number salaries". Here's political editor Joe Murphy in Monday's Evening Standard:

Ed Miliband has scored a big victory that will give his leadership a much-needed boost.

But Ed mustn't lose momentum on this issue - as he did on phone-hacking last summer, where he dropped the baton and allowed Cameron to kick the Murdoch/media reform issue into the long grass. The Labour leader has to own the issue of high pay - and keep banging on about it whenever he gets the chance. It isn't that hard, to be honest. For instance, why doesn't he come out loudly and publicly against the new bonus scheme being demanded by Network Rail chief executive Sir David Higgins, whose taxpayer-funded basic salary is already £560,000? Why doesn't he position himself at the head of a campaign to demand RBS refrains from paying out multi-million-pound, taxpayer-funded bonuses to members of its investment banking division, as is expected to happen in the not-too-distant future?

Then there's the issue of the cuts and Labour's various contortions on the subject. As a must-read, myth-busting Guardian leader points out today:

After just one year of full-blown austerity, marked by student occupations and rioting, it is sobering to be reminded that 94% of Mr Osborne's departmental spending cuts are still to come, along with another 88% of the planned reductions to benefits.

Ed M mustn't panic. The cuts have yet to fully kick in - let's see how popular (and/or effective) austerity measures are in 12 or 18 months time. Now is not the time for mixed-messaging on spending cuts, or cutting and running, otherwise Labour won't be able to reap the electoral rewards of having opposed them once the public turns - and it will turn, mark my words - against slash-and-burn, austerity-obsessed, 1930s-style economics. After all, as David Blanchflower notes in this week's magazine, the "Osborne collapse" has well and truly begun.

It is unfashionable, I know, but I've never bought into the nonsensical line from the right-wing press that Ed Miliband can't win, won't win, will never be prime minister, blah blah blah. It isn't just that, as Lord Ashcroft of all people has pointed out, he coud get "close to 40 per cent of the vote [in 2015] without needing to get out of bed". It's much more than that: Ed, at his best, brightest and boldest, understands the issues that matter to the great British public (see "squeezed middle", high pay, vested interests, etc) and, from time to time, displays excellent political judgement (phone hacking, the Hester bonus, shadow cabinet elections, etc). It's too soon to write him off. Meanwhile, the past few days have shown how unpredictable and capricious modern British politics can be: against the odds, Ed has recovered after his awful start to the year.

So, will big brother David's intervention in this week's New Statesman harm him? It wasn't, as some have claimed, an out-and-out attack on his younger brother. Nonetheless, the elder Miliband clearly isn't happy about the direction of the Ed-led Labour Party, isn't afraid to let people know that he isn't happy and surely must have known how a febrile, splits-obsessed media pack would respond to his detailed, if somewhat dry, critique of the views not so much of Ed himself but one of Ed's chief supporters, Roy Hattersley - and, that too, five months after the latter's original article on social democracy appeared in Political Quarterly. (On a side note, and to be fair, it is worth pointing out that David does volunteer four positive and named references to Ed in his NS piece.)

I'm never quite sure what David's game-plan is; what it is that he wants. The Times's Sam Coates had the best line on Twitter:

All DM's old tricks - setting up straw men (Hattersley) to knock down, loyal and disloyal simultaneously, over-complicated. Why do it?

Indeed. Whatever your view of David's intervention, the timing is bad for Ed, coming as it does after his strong performances at PMQs and in the Commons debate on Europe.

Perhaps Ed Miliband is just an unlucky leader. Not according to Steve Richards, in today's Independent. Steve makes a counter-intuitive but powerful argument in his column:

David Cameron's misguided attempt to secure an easy symbolic hit by removing the knighthood of a single banker shows how rocky the ride will be. As I have argued before, Cameron and George Osborne are not the brilliant tacticians or strategists mythology insists they are. They are middle ranking, and when they try to be too clever by half, they slip towards the relegation zone. Voters do not care a damn about the sensitivities of a greedy, incompetent banker, but they can spot a red herring as big and bright as this one.

The failure of this populist gesture shows that the issue demands more clear thinking than a bit of Bullingdon Club game-playing, and points to massive challenges for both Cameron and Ed Miliband in the coming years. For Cameron, the issue confirms my view that he is an unlucky leader.

Yet, according to Steve:

It might not seem this way to him, or to his taunting critics, but Miliband is a lucky leader. He has made a mark in responding to these events, demanding an inquiry into newspapers, while Cameron has still clung to the idea of protecting the old order, and outlining in general terms the case for a new moral capitalism. In doing so, he has had more practical impact on the course of current tumultuous dramas than any recent leader of the opposition.

He rightly concludes:

Cameron and Osborne are awestruck that in every opinion poll voters placed Tony Blair precisely on the centre ground. They want to be in the same place as their hero at the next election. But what it means to be on the centre ground is changing fast now and will have changed even more by then.

(On a related note, my colleague Rafael Behr makes the opposite case to Steve in this week's New Statesman cover story, entitled "Lucky Dave".)

 

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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The Brexit Beartraps, #2: Could dropping out of the open skies agreement cancel your holiday?

Flying to Europe is about to get a lot more difficult.

So what is it this time, eh? Brexit is going to wipe out every banana planet on the entire planet? Brexit will get the Last Night of the Proms cancelled? Brexit will bring about World War Three?

To be honest, I think we’re pretty well covered already on that last score, but no, this week it’s nothing so terrifying. It’s just that Brexit might get your holiday cancelled.

What are you blithering about now?

Well, only if you want to holiday in Europe, I suppose. If you’re going to Blackpool you’ll be fine. Or Pakistan, according to some people...

You’re making this up.

I’m honestly not, though we can’t entirely rule out the possibility somebody is. Last month Michael O’Leary, the Ryanair boss who attracts headlines the way certain other things attract flies, warned that, “There is a real prospect... that there are going to be no flights between the UK and Europe for a period of weeks, months beyond March 2019... We will be cancelling people’s holidays for summer of 2019.”

He’s just trying to block Brexit, the bloody saboteur.

Well, yes, he’s been quite explicit about that, and says we should just ignore the referendum result. Honestly, he’s so Remainiac he makes me look like Dan Hannan.

But he’s not wrong that there are issues: please fasten your seatbelt, and brace yourself for some turbulence.

Not so long ago, aviation was a very national sort of a business: many of the big airports were owned by nation states, and the airline industry was dominated by the state-backed national flag carriers (British Airways, Air France and so on). Since governments set airline regulations too, that meant those airlines were given all sorts of competitive advantages in their own country, and pretty much everyone faced barriers to entry in others. 

The EU changed all that. Since 1994, the European Single Aviation Market (ESAM) has allowed free movement of people and cargo; established common rules over safety, security, the environment and so on; and ensured fair competition between European airlines. It also means that an AOC – an Air Operator Certificate, the bit of paper an airline needs to fly – from any European country would be enough to operate in all of them. 

Do we really need all these acronyms?

No, alas, we need more of them. There’s also ECAA, the European Common Aviation Area – that’s the area ESAM covers; basically, ESAM is the aviation bit of the single market, and ECAA the aviation bit of the European Economic Area, or EEA. Then there’s ESAA, the European Aviation Safety Agency, which regulates, well, you can probably guess what it regulates to be honest.

All this may sound a bit dry-

It is.

-it is a bit dry, yes. But it’s also the thing that made it much easier to travel around Europe. It made the European aviation industry much more competitive, which is where the whole cheap flights thing came from.

In a speech last December, Andrew Haines, the boss of Britain’s Civil Aviation Authority said that, since 2000, the number of destinations served from UK airports has doubled; since 1993, fares have dropped by a third. Which is brilliant.

Brexit, though, means we’re probably going to have to pull out of these arrangements.

Stop talking Britain down.

Don’t tell me, tell Brexit secretary David Davis. To monitor and enforce all these international agreements, you need an international court system. That’s the European Court of Justice, which ministers have repeatedly made clear that we’re leaving.

So: last March, when Davis was asked by a select committee whether the open skies system would persist, he replied: “One would presume that would not apply to us” – although he promised he’d fight for a successor, which is very reassuring. 

We can always holiday elsewhere. 

Perhaps you can – O’Leary also claimed (I’m still not making this up) that a senior Brexit minister had told him that lost European airline traffic could be made up for through a bilateral agreement with Pakistan. Which seems a bit optimistic to me, but what do I know.

Intercontinental flights are still likely to be more difficult, though. Since 2007, flights between Europe and the US have operated under a separate open skies agreement, and leaving the EU means we’re we’re about to fall out of that, too.  

Surely we’ll just revert to whatever rules there were before.

Apparently not. Airlines for America – a trade body for... well, you can probably guess that, too – has pointed out that, if we do, there are no historic rules to fall back on: there’s no aviation equivalent of the WTO.

The claim that flights are going to just stop is definitely a worst case scenario: in practice, we can probably negotiate a bunch of new agreements. But we’re already negotiating a lot of other things, and we’re on a deadline, so we’re tight for time.

In fact, we’re really tight for time. Airlines for America has also argued that – because so many tickets are sold a year or more in advance – airlines really need a new deal in place by March 2018, if they’re to have faith they can keep flying. So it’s asking for aviation to be prioritised in negotiations.

The only problem is, we can’t negotiate anything else until the EU decides we’ve made enough progress on the divorce bill and the rights of EU nationals. And the clock’s ticking.

This is just remoaning. Brexit will set us free.

A little bit, maybe. CAA’s Haines has also said he believes “talk of significant retrenchment is very much over-stated, and Brexit offers potential opportunities in other areas”. Falling out of Europe means falling out of European ownership rules, so itcould bring foreign capital into the UK aviation industry (assuming anyone still wants to invest, of course). It would also mean more flexibility on “slot rules”, by which airports have to hand out landing times, and which are I gather a source of some contention at the moment.

But Haines also pointed out that the UK has been one of the most influential contributors to European aviation regulations: leaving the European system will mean we lose that influence. And let’s not forget that it was European law that gave passengers the right to redress when things go wrong: if you’ve ever had a refund after long delays, you’ve got the EU to thank.

So: the planes may not stop flying. But the UK will have less influence over the future of aviation; passengers might have fewer consumer rights; and while it’s not clear that Brexit will mean vastly fewer flights, it’s hard to see how it will mean more, so between that and the slide in sterling, prices are likely to rise, too.

It’s not that Brexit is inevitably going to mean disaster. It’s just that it’ll take a lot of effort for very little obvious reward. Which is becoming something of a theme.

Still, we’ll be free of those bureaucrats at the ECJ, won’t be?

This’ll be a great comfort when we’re all holidaying in Grimsby.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Brexit. You can find him on Twitter or Facebook.