Gail Rebuck and Victoria Barnsley: The dethroned queens of the publishing industry

It's just like when Thatcher was toppled - only nobody is cheering.

Recent times have felt like publishing’s equivalent of the week Margaret Thatcher was toppled, but with fewer cheers. On 1 July Gail Rebuck abdicated after 22 years as queen of Random House UK. The following day the chief executive of HarperCollins UK, Victoria Barnsley, was dethroned after 13 years. Suddenly, women have a lot less power in publishing.

Rebuck’s move from chief executive to chair was a not unexpected consequence of the merger of Penguin and Random House, announced last October and cleared by regulators with remarkable speed. The new UK head of the combined group is Tom Weldon, whose hunger to lead Penguin led to the premature retirement of Helen Fraser in 2009. It’s a big job for Weldon, a 47-year-old whose success owes less to literary distinction than to the sales of Jamie Oliver, Jeremy Clarkson and Paul Burrell, Diana’s butler.

Still, the publishing world consoles itself, at least Weldon has spent his life in books. At HarperCollins, the new chief executive, Charlie Redmayne, cut his teeth at BSkyB and has lately led J K Rowling’s Pottermore website.

The two dethroned queens were inevitably seen as rivals, and when a nanny ricocheted between them it upped the ante. Rebuck’s damehood in the 2009 Birthday Honours took the shine off Barnsley’s OBE, awarded six months earlier.

Rebuck was always regarded as the heavyweight – her portfolio included Chatto & Windus and Jonathan Cape, arguably Britain’s most literary imprints. Yet her roots are commercial. She first made her mark with Susie Orbach at Hamlyn, and life came full circle with the publication in 2012 of Fifty Shades of Grey, as she began her career with Ralph Stokes, who published erotica.

Meanwhile, Barnsley was just 30 when she founded the determinedly upmarket Fourth Estate, where she presided over the publication of Carol Shields (whom everyone had turned down) and Dava Sobel’s Longitude. Fourth Estate never made any money, but HarperCollins bought it in 2000 to instal Barnsley as CEO and it has since thrived.

Inevitably, the focus this past week has been on how two powerful women who care passionately about books are being succeeded by two young(ish) men fixated on celebrity, brand and technology – on product, a word too tidy and businesslike to describe a proper book. Moreover, Penguin – that most British of companies, founded by Allen Lane in 1935 to bring high-quality books to the mass market – will now be headquartered in New York City, a mere imprint of Penguin Random House. Markus Dohle, the global head of Penguin Random House, comes from the printing business and when he was appointed five years ago the New York Times observed that it was “roughly akin to putting the head mechanic in charge of an entire airline”.

Liz Thomson is co-editor of bookbrunch.co.uk

Book of Dave: Victoria Barnsley, ex-chief executive of HarperCollins, pictured in 2004. Photograph: Harry Borden/National Portrait Gallery.

Liz Thomson edited, with Patrick Humphries, the revised and updated edition of Robert Shelton’s “No Direction Home: the Life and Music of Bob Dylan”

This article first appeared in the 15 July 2013 issue of the New Statesman, The New Machiavelli

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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