The phone-hacking crisis calls for Ed Miliband to prove his dad wrong

Ralph Miliband argued that the capitalist society and state protect each other. His son must work to

Most students of sociology or politics come across the work of Ralph Miliband. His basic theory is simple: a capitalist society has a capitalist state at its beck and call. They are tied together by a "ruling class". Nobody needs to pick up the metaphorical phone -- they think the same way so they act to protect each other's interests. When people get restless, the odd concession is granted: a welfare state or free education. By and large though, the capitalists have it their own way.

A few days in to the mega and all-consuming scandal that has resulted from the News of the World's phone-hacking and News International's ability to evade any real consequences for a number of years, who is to say that Ralph Miliband wasn't right?

What has occurred is the projection -- directly and culturally -- of concentrated power that has perverted the course of justice and democracy. Just as was the case in the Watergate scandal (an over-used comparator yet seemingly apt in this case) it is not the original crime that is most revealing. It is subsequent events that tell us the most about the power of News International: police languor; political pusillanimity, and corporate cover-up.

It is very easy to see how News International and their parent, News Corporation, have been able to get the British state to do their bidding. In the year to June 2010, News International made a £73.3million annual loss. The Sun and News of the World are profitable; the Times and Sunday Times make a loss. By contrast, BSkyB's latest profits were £467million and they are shooting upwards. The two sides of Rupert Murdoch's UK business serve different functions. The newspaper side is about projection of power, while the TV side is about commercial gain. The two are closely linked.

The basic issue is one of concentration of power. Many people have alluded to this in the last few days, including Ralph Miliband's son Ed, but almost none have followed through on the consequences of that understanding. How does the News International/News Corporation power work? The newspapers provide the political leverage because voters read them, and politicians care what they write as a consequence. That leverage acts as a commercial lever to prevent strong action of politicians against the commercial interests of News Corporation. This is not corruption necessarily. It is simply how Ralph Miliband would describe the state operating in a capitalist society.

Of course, in this case, the phone is not metaphorical. It's a hotline. Politicians and News International executives have family get togethers over Christmas, fly across the world to show affectation and loyalty, employ former editors as Directors of Communication -- even discredited ones that other newspaper editors warn them against -- and fawn over leading players in the company at summer parties and the like. This is not an invisible projection of power. It's obvious, visible, and blatant. It is swaggering and self-confident collusion. It shows just how much power one media group has been able to accumulate.

Fortunately, and thanks to the work of tenacious investigative journalists and a handful of determined Labour backbenchers, the game is up. Public revulsion has called a stop to the party. Even now, there is a failure of collective media and political understanding about what this moment represents. In the latest News Corporation annual report,Moody's and S&P rated the company's outlook as "stable". What this normally means, as we have discovered, is hold on to your hats.

The initial outrage has put a block on the full takeover of BSkyB by News Corporation. The pathetically weak Press Complaints Commission has, rightly, been thrown to the wolves. The take-over postponement, which will surely inevitably mean the end of the bid, merely prevents further concentration of the media empire. And if the result of a new regulatory system is to obstruct sound investigative journalism, then that's a disaster. At worst, we could end up with a media empire whose power is undimmed, with good journalism hampered through over-reaction.

Instead, it is incumbent upon parliament to prove that democracy can properly regulate capitalism. News International/News Corporation's concentrated ownership must surely be broken up. While it was not this concentrated power that led to phone-hacking, its reality explains much of what has happened since. Newspaper ownership should be further limited. Cross-media ownership should be further restricted. Carriage of media (eg. satellite) should be separated from content provision (eg. Premiership football). This is what is required for a genuinely plural, open, creative, and diverse media where no player is so powerful that they can enjoy undue market power, and get the state to do its bidding.

So far the response to this scandal has been weak pretty much across the board. People are still afraid of confronting News Corporation and News International, such is their culturally embedded power. But this is not personal. It's not about Rupert Murdoch or any of his friends and relatives; it's about concentrations of power. It should apply equally to financial services, utility companies -- here's looking at you, British Gas -- and anywhere where power holds sway over the marketplace and politics.

Ralph Miliband spotted the dangers of corporate power subjugating the state. We have to hope he was wrong about its inevitability. In fact, let's prove that he was wrong. If there is one person who stands at the edge of this Rubicon it's Ed Miliband. After this morning's press conference, there is little doubt that he is now setting the political pace of this issue. He's found his voice, and it's a determined one. His challenge is now to use his voice wisely -- to break up a concentration of over-weaning media power.

Perhaps it is down to the son to heed to warnings of the father but prove his fatalism wrong. Democracies can act to defend the public interest. But they need men and women of courage and self-belief to do so. Ed Miliband is beginning to show he may be in possession of the courage required.

Anthony Painter is a political writer, commentator and researcher. His new book Left Without A Future? is published by Arcadia Books in November.

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Ken Livingstone says publicly what many are saying privately: tomorrow belongs to John McDonnell

The Shadow Chancellor has emerged as a frontrunner should another Labour leadership election happen. 

“It would be John.” Ken Livingstone, one of Jeremy Corbyn’s most vocal allies in the media, has said publicly what many are saying privately: if something does happen to Corbyn, or should he choose to step down, place your bets on John McDonnell. Livingstone, speaking to Russia Today, said that if Corbyn were "pushed under a bus", John McDonnell, the shadow chancellor, would be the preferred candidate to replace him.

Even among the Labour leader’s allies, speculation is rife as to if the Islington North MP will lead the party into the 2020 election. Corbyn would be 71 in 2020 – the oldest candidate for Prime Minister since Clement Attlee lost the 1955 election aged 72.

While Corbyn is said to be enjoying the role at present, he still resents the intrusion of much of the press and dislikes many of the duties of the party leader. McDonnell, however, has impressed even some critics with his increasingly polished TV performances and has wowed a few sceptical donors. One big donor, who was thinking of pulling their money, confided that a one-on-one chat with the shadow chancellor had left them feeling much happier than a similar chat with Ed Miliband.

The issue of the succession is widely discussed on the left. For many, having waited decades to achieve a position of power, pinning their hopes on the health of one man would be unforgivably foolish. One historically-minded trade union official points out that Hugh Gaitskell, at 56, and John Smith, at 55, were 10 and 11 years younger than Corbyn when they died. In 1994, the right was ready and had two natural successors in the shape of Tony Blair and Gordon Brown in place. In 1963, the right was unprepared and lost the leadership to Harold Wilson, from the party's centre. "If something happens, or he just decides to call it a day, [we have to make sure] it will be '94 not '63," they observed.

While McDonnell is just two years younger than Corbyn, his closest ally in politics and a close personal friend, he is seen by some as considerably more vigorous. His increasingly frequent outings on television have seen him emerge as one of the most adept media performers from the Labour left, and he has won internal plaudits for his recent tussles with George Osborne over the tax bill.

The left’s hopes of securing a non-Corbyn candidate on the ballot have been boosted in recent weeks. The parliamentary Labour party’s successful attempt to boot Steve Rotheram off the party’s ruling NEC, while superficially a victory for the party’s Corbynsceptics, revealed that the numbers are still there for a candidate of the left to make the ballot. 30 MPs voted to keep Rotheram in place, with many MPs from the left of the party, including McDonnell, Corbyn, Diane Abbott and John Trickett, abstaining.

The ballot threshold has risen due to a little-noticed rule change, agreed over the summer, to give members of the European Parliament equal rights with members of the Westminster Parliament. However, Labour’s MEPs are more leftwing, on the whole, than the party in Westminster . In addition, party members vote on the order that Labour MEPs appear on the party list, increasing (or decreasing) their chances of being re-elected, making them more likely to be susceptible to an organised campaign to secure a place for a leftwinger on the ballot.

That makes it – in the views of many key players – incredibly likely that the necessary 51 nominations to secure a place on the ballot are well within reach for the left, particularly if by-election selections in Ogmore, where the sitting MP, is standing down to run for the Welsh Assembly, and Sheffield Brightside, where Harry Harpham has died, return candidates from the party’s left.

McDonnell’s rivals on the left of the party are believed to have fallen short for one reason or another. Clive Lewis, who many party activists believe could provide Corbynism without the historical baggage of the man himself, is unlikely to be able to secure the nominations necessary to make the ballot.

Any left candidate’s route to the ballot paper runs through the 2015 intake, who are on the whole more leftwing than their predecessors. But Lewis has alienated many of his potential allies, with his antics in the 2015 intake’s WhatsApp group a sore point for many. “He has brought too much politics into it,” complained one MP who is also on the left of the party. (The group is usually used for blowing off steam and arranging social events.)

Lisa Nandy, who is from the soft left rather than the left of the party, is widely believed to be in the running also, despite her ruling out any leadership ambitions in a recent interview with the New Statesman.However, she would represent a break from the Corbynite approach, albeit a more leftwing one than Dan Jarvis or Hilary Benn.

Local party chairs in no doubt that the shadow chancellor is profiling should another leadership election arise. One constituency chair noted to the New Statesman that: “you could tell who was going for it [last time], because they were desperate to speak [at events]”. Tom Watson, Caroline Flint, Chuka Umunna, Yvette Cooper, Andy Burnham and Liz Kendall all visited local parties across the country in preparation for their election bids in 2015.

Now, speaking to local party activists, four names are mentioned more than any other: Dan Jarvis, currently on the backbenches, but in whom the hopes – and the donations – of many who are disillusioned by the current leadership are invested, Gloria De Piero, who is touring the country as part of the party’s voter registration drive, her close ally Jon Ashworth, and John McDonnell.

Another close ally of Corbyn and McDonnell, who worked closely on the leadership election, is in no doubt that the shadow chancellor is gearing up for a run should the need arise.  “You remember when that nice Mr Watson went touring the country? Well, pay attention to John’s movements.”

As for his chances of success, McDonnell may well be even more popular among members than Corbyn himself. He is regularly at or near the top of LabourList's shadow cabinet rankings, and is frequently praised by members. Should he be able to secure the nominations to get on the ballot, an even bigger victory than that secured by Corbyn in September is not out of the question.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.