Frances O'Grady's speech to the TUC conference: full text

The TUC general secretary says that "before he starts lecturing unions about transparency, the Prime Minister should take a long hard look in the mirror".

“Frances O'Grady, TUC, giving my first speech as General Secretary.

“And after seeing that film, ever more determined that our movement should help build a stronger, fairer Britain.

“We are now just 18 months away from a General Election. And the choice that the British people make could shape the kind of country we live in for generations.

“If we’ve learned anything since the financial crash, then it’s this: politics is too important to be left to the politicians.

“People don’t need us to tell them how tough life is for them.

“They want to hear the alternative. They want hope. And they want action.

“It was five years ago this month, Lehman Brothers filed for bankruptcy in New York, citing debt of over 600 billion dollars.

“A price tag on obscene greed and monumental stupidity that sent shock waves around the world.

“But the roots of the crash go deeper still – more than three decades to the election of Margaret Thatcher’s government.

“When the Right set out to break the post-war consensus.

“Once, it seemed everyone agreed that the State should provide decent public services and social security as a human shield against boom-bust capitalism.

“Everyone saw the value of a mixed economy that put the brakes on private monopolies and guaranteed a public realm.

“But no longer.

“What followed became the articles of a new economic faith.

“A fire-sale of public assets. Deregulation of the City. Weaker worker rights.

“And trade unions, once respected across the political spectrum for our role in fighting fascism and as a pillar of any free and democratic society, now treated with disdain.

“The values of a mythical middle England came to dominate, stretching the United Kingdom to breaking point.

“The City and the new kids on the block – private equity, hedge funds and share traders – increasingly called the shots.

“And they unleashed an escalation of greed and inequality that ultimately led to the financial crash.

“Creating a new Anglo-American model that was a kind of capitalism on crack cocaine.

“A legacy we’re living with today.

“But it hasn’t always been like this.

“Whatever happened to the Conservative Party that, over 100 years ago, backed Winston Churchill’s proposal for tripartite wages councils, so that every worker would be guaranteed a living wage?

“Whatever happened to the Conservative Party of John Major who at least felt obliged to promise voters a ‘Classless Society’?

“And whatever happened to the Conservative Party of Theresa May who once warned against becoming the Nasty Party.

“But who, just this summer, sent government funded vans onto the streets of multiracial London brandishing a slogan last used by the National Front?

“This Government seems intent on dividing Britain, Thatcher-style.

“Between those in work and those out of it.

“Between the tax top rate payers and everyone else.

“Between the metropolitan elite, with their country retreats in Chipping Norton, and the so-called desolate North.

“Governments may have had no choice about bailing out the banks.

“But they have got a political choice about what went wrong, and about where we go next.

“After all, the rest of continental Europe did not deliberately de-industrialise and make a fetish of financial services in the way that 1980s Britain did.

“And today, while workers in many countries have also seen their living standards fall, they have not taken the same hit we have, and trade unionism is not vilified in the same way.

“Even from the European engine room of austerity, the German Chancellor still defends co-determination.

“And her finance minister has called on business to meet union wage demands as a way to boost consumer demand.

“Here in the UK, more thoughtful Conservatives are nervous that this war on working people will lose votes.

“They admit that the Conservatives are seen as the party of the privileged.

“They worry that attacks on the unions of ordinary decent working men and women look high handed, cold-hearted and out of touch.

“To paraphrase Rex Harrison in My Fair Lady, why can’t David Cameron be more like Angela Merkel?

“But instead of listening to his moderates, and perhaps against his own better judgement, the Prime Minister is in hock to those who demand an ever more uncompromising stance.

“Plenty of ugly talk about a crackdown on migrants. But no crackdown on those bosses who use cheap labour to cut costs.

“Tough on welfare fraud for sure. But no sympathy for those unlucky enough to fall on hard times or lose their job.

“Freedom to raise prices for big business. But no pay rise for ordinary working families.

Decent families up and down the land; facing worries that the Eton educated elite, with their serial holidays, hired help and inherited millions, simply haven’t got a clue about.

“And beyond the rhetoric, what has this government actually done to recover and rebalance Britain’s economy?

“Invest for the future in greening Britain’s infrastructure? No. Leave the banks alone and slash state capital investment by £22bn.

“Back Britain’s advanced manufacturing base? No. Hand out government contracts to the cheapest bidder regardless of the cost to local business and jobs.

“Build affordable housing? No. Launch a lending scheme that risks the very same perfect storm that got us into the mess in the first place. And then slap on a cruel bedroom tax.

“The government is rehearsing the same old arguments, repeating the same old mistakes, rehashing the same old bust model of an economy built on sand.

“I know Conservatives are fond of referring to PR man Lynton Crosby as their very own Wizard of Oz. But what does that make Cameron, Osborne and Clegg?

“When it comes to any vision for a new economy, they are the Scarecrow, the Tin Man and the Cowardly Lion:

“No brain, no heart and no courage.

“In many ways it is a testimony to the enduring strength our trade union values of care, compassion and fairness that the Right has chosen to put us in the firing line.

“It explains why this week they are debating a Lobbying Bill that, far from dealing with the real dirt in politics, is designed to deny us a political voice.

“Now, debating the internal arrangements of the Labour Party and the role of its affiliated unions is not the business of Westminster, nor, indeed, of this Congress.

“And in the hall today we also have unions who are just as proud of their party political independence.

“But one thing is for sure.

“We are united in defending the basic democratic principle that ordinary people have the right to a political voice.

“That union money – the few pence freely given every week, by nurses, shop workers and truck drivers – is the cleanest cash in politics today.

“And that whether unions set up a political fund is a matter for members, not ministers.

“Because for too long, politics has been controlled by those who already have far too much money and far too much power.

“Half of the Conservative Party’s funding comes from the City.

“One third of their new intake of MPs are drawn from the banking industry alone.

“And we know what happens when the super-rich get to run the tax system.

“In contrast, unions are Britain’s biggest democratic membership movement of ordinary people.

“We are already required by law to report our membership records every year.

“We have more than ten times the membership of all of Britain’s political parties put together.

“It may even be more.

“The truth is, we simply don’t know.

“Because political parties don’t have to account for their members, in the way that we have to account for ours.

“In fact, the Conservative Party refuses point blank to say how many members it has.

“But, I’m pretty sure that David Cameron has fewer members than our very own Sally Hunt or Mike Clancy. And maybe even Bob Crow.

“So before he starts lecturing unions about transparency, the Prime Minister should take a long hard look in the mirror.

“We already publish our numbers.

“I challenge David Cameron to publish his.

“But more than all this.

“And here is the democratic bottom line.

“If unions were denied a political voice:

“We wouldn’t have had the 1944 Education Act; we wouldn’t have the NHS; we wouldn’t have equal pay for women; we wouldn’t have a minimum wage.

“And remember who first exposed the scandal of tax avoidance?

“Who first raised the alarm about falling living standards?

“And who first blew the whistle on zero-hours?

“You can see why some people want to shut us up.

“That is why we must now stand up for our rights.

“Not just union rights.

“Civil rights.

“People’s rights.

“The government has attacked the union link to Labour.

“A link that, of course, will evolve and change over time.

“But their real aim is to discredit all unions.

“And the reason is clear: we stand for popular policies to shift wealth and power from the few to the many.

“So if they can’t win the policy argument, then attack them as ‘trade union demands’.

“If they don't like what we say, call us ‘union paymasters’.

“And if all else fails, then try the old trick of smears.

“The government may be preparing for a humiliating climb down on some of the worst parts of the lobbying bill.

“But don’t be fooled into thinking the battle for civil liberties has been won.

“Unions still will be hit by cuts in funding limits.

“Many charities could still find themselves clobbered.

“And, shockingly, one thing is sure, this Bill will virtually close down Hope not Hate and Unite Against Fascism in what amounts to a free gift to the BNP.

“This government should be ashamed of themselves.

“Congress, this is an anti-democratic, dangerous bill, and it must be defeated.

“But delegates I also need to issue a challenge to the cynics within our own ranks too.

“We’ve all heard those who tell us that the next election does not matter.

“You don’t have to go far to hear people say there’s no difference between the parties, it doesn’t matter who wins, they’re all in it for themselves.

“I respect their right to an opinion but I must tell you they are wrong.

“The result of the next election does matter. It matters a lot.

“To the unemployed teenager, desperate for a decent job.

“To the young family, hoping for a decent home.

“And to the elderly, the disabled and their carers, who know there must be a better way.

“For trade unionists to argue that voting is a waste of time is a dangerous game that plays into the hands of our opponents.

“Because ever since the Chartists first lifted their banners, the democratic voice of the people has always been our best weapon against rule by the markets, the rich and the powerful.

“To deny that would be a betrayal of the millions of our members whose jobs, living standards and pay depends on it.

“I am not arguing that we should button up and keep quiet in the run up to the election.

“Nor that we should be put up with a vanilla version of austerity.

“On the contrary.

“But it does mean that we have to roll up our sleeves and help shape the choices on offer.

“We need to win public opinion to our policies.

“And we need to prove that they are election winners.

“Remember when we first campaigned for a minimum wage?

“The business lobby said it would wreck the economy and politicians trembled. Now it’s as much part of the mainstream British culture as curry and chips.

“It’s time for us to push the same kind of ambitious policies – to transform our economy, improve working lives and change the country for the better.

“A popular programme that can inspire voter confidence.

“A test of both values and valour.

“I’m going to tell you what should go on a pledge card.

“And, today, I challenge politicians from all parties to say where they stand on it.

“First, decent jobs.

“It’s time to restore that goal of full employment, and give a cast iron jobs guarantee for the young.

“Full employment is the best way to boost the economy, drive up living standards and generate the tax that we need to pay down the deficit.

“And let’s be clear, the reason why low-paid jobs are growing is because people have no choice but to take them.

“That is wrong.

“Employers should compete for staff. Not the other way around.

“Now, George Osborne will say – but how are you going to pay for it?

“Well, of course the best way to pay for it is by getting economic growth. That’s why we need to invest in an intelligent industrial strategy for the future.

“But if the Chancellor wants to talk numbers here’s a big one.

“According to the Rich List, since the crash, the 1,000 richest people in Britain increased their wealth by no less than £190b.

“That’s nearly double the entire budget for the NHS.

“So when they ask how we’ll pay for it, let’s tell them. Fair taxes – that’s how.

“One of the best ways to create jobs and apprenticeships would be to build new houses. And that’s pledge number two.

“One million new council and affordable homes.

“Our country has a desperate shortage of housing. That means landlords rake it in and the housing benefit bill rockets. It drives up the cost of a buying a home, and puts people in more debt.

“So cut the waiting lists, stop another bubble and let's build the homes young families need.

“Pledge number three: fair pay – and new wages councils to back it up.

“Of course the national minimum wage should go up and we need tough enforcement.

“But take one look at company profits and you’ll see that there are plenty of industries that could, and should, pay more.

“That’s why we need new wages councils, so unions and employers get around the table and negotiate.

“That’s the way to guarantee not just a minimum wage, not just a living wage but a fair wage, and fair shares of the wealth workers help create.

“And pledge number four could be the most popular one of all.

“Let’s pledge that the NHS will once again be a public service run for people and not for profit.

“Let’s make adult social care a community responsibility by bringing it together with the NHS.

“That would save money because good social care helps elderly people stay at home when they want to be, instead of in hospital when they don't.

“And while we’re about it, let’s have a proper system of care for our children too.

“So instead of shrinking the welfare state, let’s strengthen it.

“That’s the way to build a stronger economy too.

“And five – fair rights at work.

“No more union busting. No more blacklisting. And no more zero hours.

“Instead we need decent employment rights; strong unions with the freedom to organise, and a bit more economic democracy.

“We already work with the best employers, keeping workers healthy and safe, giving them the chance to learn new skills, guaranteeing fair pay and fair treatment.

“Through the worst of the recession, we made thousands of agreements to save jobs and keep plants open.

“And let me say this, I believe there isn’t a boardroom in Britain that wouldn’t benefit from giving ordinary workers a voice.

“Of course these aren’t the only issues on which we campaign.

“We oppose the creeping privatisation of our education system.

We want our railways returned to public ownership.

“And let’s send a strong message from this Congress – we will fight this latest senseless, sell-off of the family silver – hands off our Royal Mail.

“We’ve got sensible policies. Good policies. Popular policies.

“And their importance is that, together, they make a promise of a better future.

“They cut through the pessimism, and give people confidence.

“So I want to end not just by asking Congress to back the General Council statement that I move today.

“But more importantly: To unite. To organise. And to campaign.

“As the late, great poet Seamus Heaney, wrote:

‘Move lips, move minds and let new meanings flare’.

“For the people we saw on that film.

“For a new economy that puts the interests of working people at its heart.

“For our values of equality, solidarity and democracy.

“So that, together, we build a Britain of which we can be proud.”

Frances O'Grady made her first speech to the TUC as general secretary today in Bournemouth.
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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.