Interview: Jack Straw

The elder statesman of the Brown government is pressing ahead with radical reform of the UK constitu

It's hard to imagine, but Jack Straw clearly fancies himself as a character in Life on Mars, the hit retro cop drama in which a politically correct police officer from the present is transported back to the time of Ford Capris and the three-day week.

With the unions threatening a winter of industrial strife, Straw sprinkles his conversation on the eve of party conference with ominous warnings that the Labour movement must not return to the era of mutually assured industrial destruction. He comes to the interview straight from negotiations with the Prison Officers' Association, whose one-day strike in August raised the spectre of public sector unrest and reminded Straw of his long-haired youth. "We won't do ourselves any good if we get into the situation we got into in the 1970s, which I witnessed . . . It's a Life on Mars story," he says.

Don't let the tailored suits and cufflinks fool you. The Justice Secretary is a creature of glam rock. He can, he says, vouch for the accuracy of Life on Mars, as he lived through that era, first as a young barrister, and, from 1974, working for Barbara Castle, then social services secretary. Straw found himself a back-room boy during some of Labour's darkest days in power (just as David Cameron did on the Conservative side during Black Wednesday two decades later). He even remembers the pay formula won by the trade unions ("n+1"), which, he explains, was one percentage point above inflation.

We suggest that reminding the unions of the 1978-79 Winter of Discontent has become a little tired. "But I've never said remember the Winter of Discontent," Straw responds. "What I've said to them is remember the mid-1970s rather than the end, because that's what's burnt on my brain - the experience of actually being in government as a special adviser in that period and seeing where we ended. On one level, the circumstances aren't remotely the same, because public finance and the state of the British economy is completely different. But what that experience taught me was how important it was to get on top of any indications of inflation and do it quickly."

Straw insists he is keeping up a dialogue with the prison officers, but he makes clear that the overall settlement is non-negotiable. The best he can offer is more flexibility about working conditions and modernisation agreements, and he also promises to do more to raise the status of prison officers so they are seen as key public sector workers in the way that teachers, nurses and police officers are. Whether this will be enough to keep the POA membership at work is another question. He talks about dealing with prison disputes as a Groundhog Day moment.

Indeed, much of Straw's in tray marks a return to two of his former jobs, as home secretary and foreign secretary. Immediately after the interview, he is off to Brussels to discuss aspects of the new EU constitutional treaty. Straw has the air of a man who has been there and done it all, so it is impossible not to quiz him on American sabre-rattling over Iran.

He is keen not to tread on the toes of his successor, but he makes clear that the new-found cooling towards the Bush administration extends to the next potential war. "I think David Miliband has made it clear . . . military action against Iran is not on the UK's agenda." Straw has consistently hinted that he would not support military action in Iran, and he was one of the architects of the three-nation talks with Tehran, involving Britain, Germany and France. "Of course I'm an interested person; how couldn't I be an interested person?" Pressed spe cifically on reaction to a US military strike, he says: "That would be a bridge we'd have to cross. I'd make my decision at the time."

We put to him the assertions made by David Manning, Tony Blair's former foreign affairs adviser and the outgoing ambassador to Washington. In last week's NS, Manning claimed that Blair never wanted to go to war in Iraq and that the British had been misled by the US government on the postwar reconstruction. His remarks have been greeted with some scepticism, but Straw says Manning's description of events is largely accurate. "I never had the least impression that Tony was somehow gung-ho for a war and that the whole thing was cooked up, because it's simply not true."

European poetry

At 61, Straw is the elder statesman of the cabinet, one of the few members of Gordon Brown's team more senior in years than the Prime Minister himself. He is quite relaxed about admitting to differences with cabinet colleagues. He defends his support for the Muslim Council of Britain, whose near monopoly on dialogue with ministers was challenged first by Ruth Kelly, when she was communities secretary, and then by Jacqui Smith, the Home Secretary. "I think they have a fair point in saying they should not be ignored because they are representative of most of the mosque associations in the country," he says. "Sometimes I agree with them and they with me, and sometimes we have very spirited disagreements, but they are part of civil society."

Throughout Blair's fraught final years in charge, Straw was seen as the Eurosceptics' fifth columnist in cabinet. It was he who in April 2004 bounced the then PM into a U-turn on the EU constitution and agreement to a referendum. Where does he stand now? Even if, as some people argue, the new treaty is 95 per cent the same as the old one, this is not an argument for a plebiscite, he says. "It depends how you work out your 95 per cent . . . because the difference between good and bad poetry is the 5 per cent. Sometimes it's the 1 per cent." The difference, he argues, can be found in the greater clarity of the updated document over the role of a new EU foreign affairs chief, plus clearer opt-outs protecting the UK position in a number of policy areas and a less prominent role for the EU Charter of Fundamental Rights. So why did he buckle last time around? He produces an ingenious construct. "We had to have a referendum last time because of the extent of the clamour. I never accepted that it was justified in terms of what the constitution would do." This seems an odd thing to say when a significant number of Labour MPs, the unions, the Conservative Party and 60,000 signatories to a Daily Telegraph petition are calling for a referendum. We ask how loud the clamour has to be this time before the government changes tack. "I think the case is much weaker than it was."

The job of justice secretary, created after the splitting of the Home Office in two, could be seen as a fringe post. But Straw sits at the Prime Minister's left hand around the cabinet table, suggesting that the man who organised Brown's leadership campaign is also de facto Deputy Prime Minister. That he has been given the crucial job of pushing through Brown's constitutional reforms reinforces his status. His role early on during the Blair administration in drawing up the Human Rights Act made him the obvious man for the job. "The principal difference between where we were ten years ago and where we are today is that this is explicitly about reducing the power of the centre and the executive vis-à-vis parliament."

The details of the government's plans for constitutional reform have been well rehearsed (controls on the prime minister's power to declare war, ratify treaties and dissolve parliament; new oversight for the intelligence agencies; a UK Bill of Rights; a statement of British values). Straw rules out a written constitution, at least in the short term. "I'm not against a written constitution, but I think you've got to get the building blocks in place before you get there. In any case, I think it has to be done through parliament ultimately and a referendum."

Another reform missing from the government's plans thus far is changing the way the House of Commons is elected. Straw, like Brown, remains adamant that the link between MPs and the constituencies they represent should be maintained. He remains unconvinced, therefore, by arguments for proportional representation. But, he says, he would favour a move towards the "alternative vote" system (AV) where people mark a list of candidates in order of preference. This ensures that each constituency MP eventually gets the support of a majority of voters.

His undisguised support for AV gives at least a hint of the direction of travel of the Brown government. "I happen to think that first past the post or AV, which is a variant of it, is fairer. The alternative vote has many attractions, including the fact that you have to get 50 per cent plus one in that constituency, therefore you have a greater legitimacy."

Jack Straw is not a man who readily admits he was wrong. On Iraq, on championing the Muslim Council of Britain, on his dealings with the prison officers, he is unrepentant. But on one matter he is prepared to admit that mistakes were made: in not properly selling the Human Rights Act to the British people. This has allowed hardliners, such as the retiring former home secretary John Reid, and their supporters in the right-wing media, to depict it as a criminals' charter.

"Entirely in hindsight, I should have brought out [the fact] that every right is balanced out by a responsibility or duty," he says. "I should probably have gone into more explanation about the benefits to British citizens, not just to those who behave badly, although we all have that potential."

This article first appeared in the 24 September 2007 issue of the New Statesman, Trouble ahead: the crises facing Gordon Brown

Jeremy Corbyn. Photo: Getty
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Lexit: the EU is a neoliberal project, so let's do something different when we leave it

Brexit affords the British left a historic opportunity for a decisive break with EU market liberalism.

The Brexit vote to leave the European Union has many parents, but "Lexit" – the argument for exiting the EU from the left – remains an orphan. A third of Labour voters backed Leave, but they did so without any significant leadership from the Labour Party. Left-of-centre votes proved decisive in determining the outcome of a referendum that was otherwise framed, shaped, and presented almost exclusively by the right. A proper left discussion of the issues has been, if not entirely absent, then decidedly marginal – part of a more general malaise when it comes to developing left alternatives that has begun to be corrected only recently, under Jeremy Corbyn and John McDonnell.

Ceding Brexit to the right was very nearly the most serious strategic mistake by the British left since the ‘70s. Under successive leaders Labour became so incorporated into the ideology of Europeanism as to preclude any clear-eyed critical analysis of the actually existing EU as a regulatory and trade regime pursuing deep economic integration. The same political journey that carried Labour into its technocratic embrace of the EU also resulted in the abandonment of any form of distinctive economics separate from the orthodoxies of market liberalism.

It’s been astounding to witness so many left-wingers, in meltdown over Brexit, resort to parroting liberal economics. Thus we hear that factor mobility isn’t about labour arbitrage, that public services aren’t under pressure, that we must prioritise foreign direct investment and trade. It’s little wonder Labour became so detached from its base. Such claims do not match the lived experience of ordinary people in regions of the country devastated by deindustrialisation and disinvestment.

Nor should concerns about wage stagnation and bargaining power be met with finger-wagging accusations of racism, as if the manner in which capitalism pits workers against each other hasn’t long been understood. Instead, we should be offering real solutions – including a willingness to rethink capital mobility and trade. This places us in direct conflict with the constitutionalised neoliberalism of the EU.

Only the political savvy of the leadership has enabled Labour to recover from its disastrous positioning post-referendum. Incredibly, what seemed an unbeatable electoral bloc around Theresa May has been deftly prized apart in the course of an extraordinary General Election campaign. To consolidate the political project they have initiated, Corbyn and McDonnell must now follow through with a truly radical economic programme. The place to look for inspiration is precisely the range of instruments and policy options discouraged or outright forbidden by the EU.

A neoliberal project

The fact that right-wing arguments for Leave predominated during the referendum says far more about today’s left than it does about the European Union. There has been a great deal of myth-making concerning the latter –much of it funded, directly or indirectly, by the EU itself.

From its inception, the EU has been a top-down project driven by political and administrative elites, "a protected sphere", in the judgment of the late Peter Mair, "in which policy-making can evade the constraints imposed by representative democracy". To complain about the EU’s "democratic deficit" is to have misunderstood its purpose. The main thrust of European economic policy has been to extend and deepen the market through liberalisation, privatisation, and flexiblisation, subordinating employment and social protection to goals of low inflation, debt reduction, and increased competitiveness.

Prospects for Keynesian reflationary policies, or even for pan-European economic planning – never great – soon gave way to more Hayekian conceptions. Hayek’s original insight, in The Economic Conditions of Interstate Federalism, was that free movement of capital, goods, and labour – a "single market" – among a federation of nations would severely and necessarily restrict the economic policy space available to individual members. Pro-European socialists, whose aim had been to acquire new supranational options for the regulation of capital, found themselves surrendering the tools they already possessed at home. The national road to socialism, or even to social democracy, was closed.

The direction of travel has been singular and unrelenting. To take one example, workers’ rights – a supposed EU strength – are steadily being eroded, as can be seen in landmark judgments by the European Court of Justice (ECJ) in the Viking and Laval cases, among others. In both instances, workers attempting to strike in protest at plans to replace workers from one EU country with lower-wage workers from another, were told their right to strike could not infringe upon the "four freedoms" – free movement of capital, labour, goods, and services – established by the treaties.

More broadly, on trade, financial regulation, state aid, government purchasing, public service delivery, and more, any attempt to create a different kind of economy from inside the EU has largely been forestalled by competition policy or single market regulation.

A new political economy

Given that the UK will soon be escaping the EU, what opportunities might this afford? Three policy directions immediately stand out: public ownership, industrial strategy, and procurement. In each case, EU regulation previously stood in the way of promising left strategies. In each case, the political and economic returns from bold departures from neoliberal orthodoxy after Brexit could be substantial.

While not banned outright by EU law, public ownership is severely discouraged and disadvantaged by it. ECJ interpretation of Article 106 of the Treaty on the Functioning of the European Union (TFEU) has steadily eroded public ownership options. "The ECJ", argues law professor Danny Nicol, "appears to have constructed a one-way street in favour of private-sector provision: nationalised services are prima facie suspect and must be analysed for their necessity". Sure enough, the EU has been a significant driver of privatisation, functioning like a ratchet. It’s much easier for a member state to pursue the liberalisation of sectors than to secure their (re)nationalisation. Article 59 (TFEU) specifically allows the European Council and Parliament to liberalise services. Since the ‘80s, there have been single market programmes in energy, transport, postal services, telecommunications, education, and health.

Britain has long been an extreme outlier on privatisation, responsible for 40 per cent of the total assets privatised across the OECD between 1980 and 1996. Today, however, increasing inequality, poverty, environmental degradation and the general sense of an impoverished public sphere are leading to growing calls for renewed public ownership (albeit in new, more democratic forms). Soon to be free of EU constraints, it’s time to explore an expanded and fundamentally reimagined UK public sector.

Next, Britain’s industrial production has been virtually flat since the late 1990s, with a yawning trade deficit in industrial goods. Any serious industrial strategy to address the structural weaknesses of UK manufacturing will rely on "state aid" – the nurturing of a next generation of companies through grants, interest and tax relief, guarantees, government holdings, and the provision of goods and services on a preferential basis.

Article 107 TFEU allows for state aid only if it is compatible with the internal market and does not distort competition, laying out the specific circumstances in which it could be lawful. Whether or not state aid meets these criteria is at the sole discretion of the Commission – and courts in member states are obligated to enforce the commission’s decisions. The Commission has adopted an approach that considers, among other things, the existence of market failure, the effectiveness of other options, and the impact on the market and competition, thereby allowing state aid only in exceptional circumstances.

For many parts of the UK, the challenges of industrial decline remain starkly present – entire communities are thrown on the scrap heap, with all the associated capital and carbon costs and wasted lives. It’s high time the left returned to the possibilities inherent in a proactive industrial strategy. A true community-sustaining industrial strategy would consist of the deliberate direction of capital to sectors, localities, and regions, so as to balance out market trends and prevent communities from falling into decay, while also ensuring the investment in research and development necessary to maintain a highly productive economy. Policy, in this vision, would function to re-deploy infrastructure, production facilities, and workers left unemployed because of a shutdown or increased automation.

In some cases, this might mean assistance to workers or localities to buy up facilities and keep them running under worker or community ownership. In other cases it might involve re-training workers for new skills and re-fitting facilities. A regional approach might help launch new enterprises that would eventually be spun off as worker or local community-owned firms, supporting the development of strong and vibrant network economies, perhaps on the basis of a Green New Deal. All of this will be possible post-Brexit, under a Corbyn government.

Lastly, there is procurement. Under EU law, explicitly linking public procurement to local entities or social needs is difficult. The ECJ has ruled that, even if there is no specific legislation, procurement activity must "comply with the fundamental rules of the Treaty, in particular the principle of non-discrimination on grounds of nationality". This means that all procurement contracts must be open to all bidders across the EU, and public authorities must advertise contracts widely in other EU countries. In 2004, the European Parliament and Council issued two directives establishing the criteria governing such contracts: "lowest price only" and "most economically advantageous tender".

Unleashed from EU constraints, there are major opportunities for targeting large-scale public procurement to rebuild and transform communities, cities, and regions. The vision behind the celebrated Preston Model of community wealth building – inspired by the work of our own organisation, The Democracy Collaborative, in Cleveland, Ohio – leverages public procurement and the stabilising power of place-based anchor institutions (governments, hospitals, universities) to support rooted, participatory, democratic local economies built around multipliers. In this way, public funds can be made to do "double duty"; anchoring jobs and building community wealth, reversing long-term economic decline. This suggests the viability of a very different economic approach and potential for a winning political coalition, building support for a new socialist economics from the ground up.

With the prospect of a Corbyn government now tantalisingly close, it’s imperative that Labour reconciles its policy objectives in the Brexit negotiations with its plans for a radical economic transformation and redistribution of power and wealth. Only by pursuing strategies capable of re-establishing broad control over the national economy can Labour hope to manage the coming period of pain and dislocation following Brexit. Based on new institutions and approaches and the centrality of ownership and control, democracy, and participation, we should be busy assembling the tools and strategies that will allow departure from the EU to open up new political-economic horizons in Britain and bring about the profound transformation the country so desperately wants and needs.

Joe Guinan is executive director of the Next System Project at The Democracy Collaborative. Thomas M. Hanna is research director at The Democracy Collaborative.

This is an extract from a longer essay which appears in the inaugural edition of the IPPR Progressive Review.

 

 

This article first appeared in the 24 September 2007 issue of the New Statesman, Trouble ahead: the crises facing Gordon Brown