How the coalition is failing to stand up for consumers

The government has consistently resisted measures which would tackle the living standards crisis.

Last month, David Cameron tweeted that "we are on the right track - building an economy for hardworking people". But people across the UK won’t feel that at all – they only thing they can feel is their pockets being hit. Average earnings are £1,477 a year lower than they were at the time of the last general election. This means that, in real terms, workers are on average earning today the same as they were in 2001.

And the promises were so big. Before the 2010 general election, the Tories said: "We want to see an economy where not just our standard of living, but everyone’s quality of life, rises steadily and sustainably."

It has done anything but. Working families are worse off with energy bills having risen by £300, while the profits of the energy companies have soared. It is yet another year of inflation-busting fare rises will just add to the pressure on household budgets. Instead of standing up for hard-pressed commuters, this government is siding with the private train companies and helping them to increase their profits at the expense of passengers.

Consumers are a key driver of the economy, creating the demand for goods and services which provide jobs, stimulate innovation, create wealth and tax take. In a functioning economy, knowledgeable, informed and empowered consumers can drive up standards, supply and value for money as well.

In government, Labour recognised this and strived to be the party of consumers for the benefit of the economy. We built consumer interests into regulation, supported Trading Standards and created Consumer Focus which was respected by all stakeholders. We got a fairer deal for purchasers of energy and other basic necessities, and ensured an ever increasing standard of living - something this government has failed to emulate, as prices rise higher than incomes.

So what are ministers doing for consumers? Despite the rhetoric, the government’s recently published Draft Consumer Rights Bill, is little more than window dressing. Whilst steps to cover areas such digital downloads are welcome, reflecting arguments which we have been making on the need for protections for consumers in new markets, the Bill is a huge missed opportunity to help hard-pressed consumers by ensuring a fair deal on energy prices, tackling high rail fares and challenging the cost of living crisis engulfing Britain.

On top of this, ministers are ignoring the other pieces of the jigsaw such as enforcement, advice and funding. Their changes to consumer protection since 2010 have been muddled and have created uncertainty and confusion: They’ve abolished Consumer Focus and then set-up a new body – Consumer Futures – to do the same job. This is alongside a slashing of funding to local authorities which has significantly impacted Trading Standards, making it harder for consumers to uphold their rights and seek redress. Aggregate trading standards funding has dropped from £245m to £142m since 2010, with hundreds of jobs being lost estimated to amount to around 15% of the total workforce upholding and enforcing consumer rights. And through the Bill, the government now want to remove the ability of Trading Standards officers to make inspections unannounced. In response, the Trading Standards Institute has said it "would urge the government to refrain from removing the power of trading standards officers to enter premises unannounced. It is an essential tool for them to use and it is vital that when complaints are made, councils can investigate and tackle the problem immediately."

Ministers’ rejection of our calls for better standards in the private rented housing sector and their refusal to adopt a Code of Conduct for the banking and insurance industry reflect how they are standing up for the wrong people and their lack of concern for helping hard-pressed families. Similarly, the limited collective redress measures proposed in the Bill fall short of what groups of consumers across the UK need to obtain effective consumer redress when they have been wronged.

Simply, this government has resisted measures which would tackle the real living standards crisis which people are facing.

However, Labour is clear – if in government we would be taking action to implement a One Nation programme to boost people’s living standards. We need a tough new energy watchdog to force suppliers to pass price cuts onto consumers, and to ensure the over-75s automatically get the cheapest tariff.

Likewise, we’ve seen rail fares up 9% a year, after the government allowed train operators to increase some fares by up 5% above the supposed ‘cap’. We would be put passengers first by banning train companies from increasing fares above the cap set by ministers so that fares would be rising by no more than 1 per cent above inflation under Labour in each year of this parliament

And we are already examining plans to bolster collective action, empowering consumers so they can club together more easily to seek redress, as part of our policy review, led by consumer champion Ed Mayo last year. During the passage of the Bill, we will be pressing ministers for a strong, accessible collective redress mechanism, one which mirrors the Portuguese and Australian models that remove the legal excesses and is not a US-style class action, where litigation is dominant.

We know that David Cameron and his government won’t stand up for consumers. It’s time for him to wake up and adopt Labour’s plan to help working people – not keep filling the pockets of those at the top that exacerbates the cost of living crisis.

David Cameron speaks during a press conference at the end of the G20 Leaders' Summit on September 6, 2013 in St. Petersburg, Russia. Photograph: Getty Images.

Ian Murray is shadow minister for employment relations, consumer and postal affairs, and Labour MP for Edinburgh South

 

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Erdogan’s purge was too big and too organised to be a mere reaction to the failed coup

There is a specific word for the melancholy of Istanbul. The city is suffering a mighty bout of something like hüzün at the moment. 

Even at the worst of times Istanbul is a beautiful city, and the Bosphorus is a remarkable stretch of sea. Turks get very irritated if you call it a river. They are right. The Bosphorus has a life and energy that a river could never equal. Spend five minutes watching the Bosphorus and you can understand why Orhan Pamuk, Turkey’s Nobel laureate for literature, became fixated by it as he grew up, tracking the movements of the ocean-going vessels, the warships and the freighters as they steamed between Asia and Europe.

I went to an Ottoman palace on the Asian side of the Bosphorus, waiting to interview the former prime minister Ahmet Davu­toglu. He was pushed out of office two months ago by President Recep Tayyip Erdogan when he appeared to be too wedded to the clauses in the Turkish constitution which say that the prime minister is the head of government and the president is a ceremonial head of state. Erdogan was happy with that when he was prime minister. But now he’s president, he wants to change the constitution. If Erdogan can win the vote in parliament he will, in effect, be rubber-stamping the reality he has created since he became president. In the days since the attempted coup, no one has had any doubt about who is the power in the land.

 

City of melancholy

The view from the Ottoman palace was magnificent. Beneath a luscious, pine-shaded garden an oil tanker plied its way towards the Black Sea. Small ferries dodged across the sea lanes. It was not, I hasten to add, Davutoglu’s private residence. It had just been borrowed, for the backdrop. But it reminded a Turkish friend of something she had heard once from the AKP, Erdogan’s ruling party: that they would not rest until they were living in the apartments with balconies and gardens overlooking the Bosphorus that had always been the preserve of the secular elite they wanted to replace.

Pamuk also writes about hüzün, the melancholy that afflicts the citizens of Istanbul. It comes, he says, from the city’s history and its decline, the foghorns on the Bosphorus, from tumbledown walls that have been ruins since the fall of the Byzantine empire, unemployed men in tea houses, covered women waiting for buses that never come, pelting rain and dark evenings: the city’s whole fabric and all the lives within it. “My starting point,” Pamuk wrote, “was the emotion that a child might feel while looking through a steamy window.”

Istanbul is suffering a mighty bout of something like hüzün at the moment. In Pamuk’s work the citizens of Istanbul take a perverse pride in hüzün. No one in Istanbul, or elsewhere in Turkey, can draw comfort from what is happening now. Erdogan’s opponents wonder what kind of future they can have in his Turkey. I think I sensed it, too, in the triumphalist crowds of Erdogan supporters that have been gathering day after day since the coup was defeated.

 

Down with the generals

Erdogan’s opponents are not downcast because the coup failed; a big reason why it did was that it had no public support. Turks know way too much about the authoritarian ways of military rule to want it back. The melancholy is because Erdogan is using the coup to entrench himself even more deeply in power. The purge looks too far-reaching, too organised and too big to have been a quick reaction to the attempt on his power. Instead it seems to be a plan that was waiting to be used.

Turkey is a deeply unhappy country. It is hard to imagine now, but when the Arab uprisings happened in 2011 it seemed to be a model for the Middle East. It had elections and an economy that worked and grew. When I asked Davutoglu around that time whether there would be a new Ottoman sphere of influence for the 21st century, he smiled modestly, denied any such ambition and went on to explain that the 2011 uprisings were the true succession to the Ottoman empire. A century of European, and then American, domination was ending. It had been a false start in Middle Eastern history. Now it was back on track. The people of the region were deciding their futures, and perhaps Turkey would have a role, almost like a big brother.

Turkey’s position – straddling east and west, facing Europe and Asia – is the key to its history and its future. It could be, should be, a rock of stability in a desperately un­stable part of the world. But it isn’t, and that is a problem for all of us.

 

Contagion of war

The coup did not come out of a clear sky. Turkey was in deep crisis before the attempt was made. Part of the problem has come from Erdogan’s divisive policies. He has led the AKP to successive election victories since it first won in 2002. But the policies of his governments have not been inclusive. As long as his supporters are happy, the president seems unconcerned about the resentment and opposition he is generating on the other side of politics.

Perhaps that was inevitable. His mission, as a political Islamist, was to change the country, to end the power of secular elites, including the army, which had been dominant since Mustafa Kemal Atatürk created modern Turkey after the collapse of the Ottoman empire. And there is also the influence of chaos and war in the Middle East. Turkey has borders with Iraq and Syria, and is deeply involved in their wars. The borders do not stop the contagion of violence. Hundreds of people have died in the past year in bomb attacks in Turkish cities, some carried out by the jihadists of so-called Islamic State, and some sent by Kurdish separatists working under the PKK.

It is a horrible mix. Erdogan might be able to deal with it better if he had used the attempted coup to try to unite Turkey. All the parliamentary parties condemned it. But instead, he has turned the power of the state against his opponents. More rough times lie ahead.

Jeremy Bowen is the BBC’s Middle East editor. He tweets @bowenbbc

This article first appeared in the 28 July 2016 issue of the New Statesman, Summer Double Issue