An Afghan banana seller in Jalalabad, 2013. Each of the fruit contains more than the RDA of sugar. (Photo: Getty)
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Getting into state school Gove-style, milking the dairy industry and going bananas about sugar

Peter Wilby’s First Thoughts.

Michael Gove has won praise for sending his ten-year-old daughter to Grey Coat Hospital, a girls’ comprehensive in Westminster. It is refreshing that a Tory education secretary has opted for a multi-ethnic urban school (nearly 30 per cent of its pupils don’t have English as their first language) and that his wife, the Daily Mail columnist Sarah Vine, has written about “the miracle of our state education system . . . [which] welcomes all-comers”. Vine admits that “snobbery” (her word) plays a part when parents choose fee-charging schools. They are “paying for their child to mix with the right kind of kids”.

While giving the Goves due credit, we should note that they aren’t exactly sending their child to the neighbourhood comprehensive. She will travel more than five miles from their home in west London, bypassing several other comprehensives rated “outstanding” by Ofsted.

More important, you need nifty footwork to get your child into Grey Coat. It is not only a Church of England school but also a specialist language school, which admits 10 per cent of its children after an “aptitude” test. It is hugely oversubscribed, with more than six applicants for each place, and the criteria for choosing the lucky ones are exceedingly complex.

More than two-thirds of places are reserved for Christian applicants who have attended church with their family weekly for five years. The child must also acquire “points” from baptism, confirmation, Sunday school attendance and “a role in public worship”. Parents, too, must accumulate points from, say, “elected office in the church” and “practical involvement”.

In November, the schools adjudicator deemed these arrangements neither open nor fair as required by the government’s
admissions code. Working hours or childcare difficulties prevent some families, especially single parents, from participating in church activities, the adjudicator ruled. Did Gove take advantage of an admissions process that breaches his department’s rules?

Following Shephard

While we’re about it, it isn’t true that Gove is the first Tory education secretary to send a child to a state secondary. Gillian Shephard, in office from 1994 to 1997, sent two sons (actually stepsons, but their mother died young and Shephard raised them from infancy) to state schools. But Shephard is a woman, so I suppose she doesn’t count.

Dear dairy

Tesco’s latest cut in the price of milk – it will sell four pints for £1 – has led to another spate of stories about the imminent collapse of the British dairy industry. I do not know enough about the economics of farming to judge the veracity of these reports. I do know that, all my adult life, people have complained about things that, though the complainants do not realise it, are the result of successive (mostly
Tory) governments trying to make the British economy more “competitive”.

Rock-bottom milk prices putting farmers out of business? Blame it on the abolition in 1994 of the Milk Marketing Board, which once set prices according to production costs. Small, independent retailers going out of business? Blame it on the abolition in 1964 of resale price maintenance (RPM); RPM allowed producers to fix the prices at which their goods were sold. Unhelpful and ignorant sales assistants? Blame the end of RPM again, because retailers now compete on price, not on personal service. The country has repeatedly voted for more capitalism. It should now grin and bear it.

Sugar goes bananas

Is milk good for us? Who knows? Following advice on what to eat has as many ups and downs as following the England cricket team. Keep sugar to a minimum, we are told. Fine, many of us already call it “white death”. Now the World Health Organisation says we should aim to limit it to six teaspoons a day. A banana contains seven teaspoons, the WHO adds. I deduce that I should never eat a banana or, if I do, I should eat half, saving the other half for another day. On either day, I should take care not to eat an orange, which contains four teaspoons. Can that be right?

Tell me Hawaii

Sir Tim Rice seems baffled by the failure of his latest musical, musing that people don’t want new songs, only old ones repackaged. Reluctant to reject a production because it lacks popular appeal, I hastened to buy tickets before From Here to Eternity closes at the Shaftesbury Theatre in London. The music was unmemorable, the set colourless (though it’s supposed to represent Hawaii, a tropical island), the choreography ragged, the historical context (the Japanese attack on Pearl Harbor in 1941) barely evident. Sometimes, the popular verdict is spot on. Rice should try writing better shows.

Peter Wilby was editor of the Independent on Sunday from 1995 to 1996 and of the New Statesman from 1998 to 2005. He writes the weekly First Thoughts column for the NS.

This article first appeared in the 12 March 2014 issue of the New Statesman, 4 years of austerity

FABRICE COFFRINI/AFP/Getty
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Is Switzerland about to introduce a universal basic income?

A referendum on 5 June, triggered by a 100,000-strong petition, will determine whether the country transforms its welfare state with a monthly no-obligations cash handout available to all.

The Office Cantonal de l’Emploi (OCE), Geneva’s unemployment administration, is what you might expect of a modern bureaucracy. Not exactly Kafka-esque, it moves slowly but rationally: take a ticket, wait your turn, learn which paperwork is missing from your dossier, repeat. Located in a big complex of social administration behind the main train station, the office is busy for a region with an unemployment rate between 5 and 6 per cent, well below the European average. The staff, more like social workers than bureaucrats in dress and demeanour, work hard to reinsert people into the job market: officials can be responsible for over 40 dossiers at a time.

Objectively, Switzerland is a good place to be out of work. For a low-tax country the welfare system is robust. On condition of having worked and paid taxes in the state for over 12 months, a newly-unemployed is assured 70-80 per cent of his previous salary for a period up to 2 years: ample income in a country with some of the highest average wages in the world. In practice, the system is a hybrid between the OCE (which tries to get people back to work) and union-allied social insurance bodies (which take care of monthly payments) and is complex but effective. There are welfare trade-offs – easy firing, expensive healthcare – but Switzerland is far from a free market machine without a safety net.

***

It seems strange that such a well-oiled system could soon be obsolete. On 5 June, Switzerland will hold a referendum on an initiative to introduce a universal basic income (UBI): a guaranteed, no-strings-attached, monthly payment of 2,500 Swiss francs (£1,784) for each legal resident. Driven by a popular initiative which collected the requisite 100,000 signatures, the UBI would revamp the welfare state by streamlining its core into this single monthly cash transfer. No more obligations to apply for a certain number of positions per month in order to “qualify” for your handout: you could choose to continue working and earning, or you could lead a life of leisure. The existential fear associated with finding, and maintaining, employment would disappear.

Last month, a “robot rally” was held in Zürich to drum up support for the initiative. Hundreds of badly-disguised campaigners paraded through the city advocating a futuristic social contract between man and machine: according to these robots, as they become more advanced, displacing more and more blue and white-collar jobs, the only solution is a UBI allowing for dignified coexistence. Robots must be our friends, not our foes, they claimed. This common refrain of digital disruption is a core tenet of the campaign and echoes a zeitgeist debate in Switzerland around the future of work and technology. The concept of a “Fourth Industrial Revolution”, championed by Klaus Schwab, Executive Chairman of the Geneva-based World Economic Forum, has risen from soundbite to serious topic. Schwab says that current shifts in AI and connected technologies amount to “nothing less than a transformation of humankind”, one which will need solutions guaranteeing some sort of a minimum-income for all.

A record-breakingly large poster in the Pleine de PlainPalais, Geneva. Photo: Fabrice Coffrini/AFP/Getty

But the ego of an epoch tends to historical self-aggrandisement. Hasn’t technological change always been an issue? In the opening scene of the 1986 Only Fools and Horses episode “Let Sleeping Dogs Lie”, Rodney complains about computers and mass unemployment in Thatcherite Britain: “How many people have been put on the dole by a robot what [sic] can build a car?” Digital advances aside, this is hardly the case in Switzerland, where the average unemployment rate is 3.7 per cent. Che Wagner, spokesman of Basic Income Switzerland, the organisation behind the popular initiative, concedes that the country is not suffering from any “emergency problem”. Yet it is precisely the triad of “political stability, economic wealth and a strong liberal culture of self-determination” which makes Switzerland an ideal testing ground for opening the debate. Whereas welfare politics have traditionally aimed to solve problems, this initiative is a more positive affirmation of how best to organise an affluent society of the future. The key goal is more philosophical than economic; he is determined to “decouple the concepts of labour and self-worth”.

In this sense the initiative is a radical departure from both “welfare-politics-as-usual” and neo-liberal proposals for basic incomes. Che and his colleagues make up an independently-funded, wilfully apolitical group which eschews traditional concepts of left and right. There are no Marxist hangovers in the proposal (“we don’t want to take anything from anybody to give it to somebody else”), yet there is also no indication that they support a radical rationalisation of taxation and wealth creation implied by liberal economists like Milton Friedman. The UBI would not negate certain benefits guaranteed under the current welfare system – disability allowances, for example – and is not Randian model of eradicating poverty to let the wealth creators run free. The core raison d’être is an individualistic, humanist empowerment; any socio-economic reorganisation which would be bound to arise is secondary.

This reflects the messy international debate, which has come on the agenda in recent years and attracted inputs from across the spectrum. Both Yanis Varoufakis and Joseph Stiglitz have voiced approval. Slavoj Žižek, the loud Slovene philosopher of the far left, wants a reconceptualisation of UBI to recognise that “in a knowledge-based economy, collective productivity of the ‘general intellect’ is the key source of wealth” – a similar idea to Paul Mason’s vision of a “post-capitalist” socialism for a digital age. Unsurprisingly, the companies and tech evangelists who reap the largest benefits from this data-based economy are also concerned. Some are researching liberating models of “seed money for everybody” which would have the dual-advantage of reducing annoying government bureaucracy and mitigating the possible backlash against future technological gains. In true internet-emancipatory fashion, they also want to liberate people’s latent creativity by replacing the obligation to work by the incentive to innovate.

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It is difficult to argue with the idea that people should work because they want to, not because they have to. But Swiss referendums are not won and lost on philosophical niceties. Direct democracy depends upon an engaged and pragmatic population which deliberates more earthly concerns: is our society ready for this? What would happen to the Swiss economy? Most importantly, how would it work in practice? Unfortunately for the “yes” side, these matters have proven more difficult to communicate.

One opinion poll conducted in January found that just 2 per cent of the population would quit their jobs if the measure came into effect. This is far from any imagined society of freeloading slackers which people seem to fear (ironically, one-third of the same respondents said that they expected that others would leave their jobs). But in a nation where, like elsewhere, the education system is designed to train people for specific professions and the social expectation is that you are what you work, it is difficult to see beyond a vanguard of creative or entrepreneurial youth who might embrace the freedom. Of course, those working part-time positions paid little more than 2,500 Swiss francs would have little incentive to keep working, but elsewhere it may be business as usual. My local kebab vendor told me that he had been working since he was 14, so he would see no reason to stop now.

What the experiment would do to Swiss GDP is also unclear. According to the initiators of the plan, the extra cost to the exchequer to pay a UBI to all those currently under the 2,500 Swiss franc level would be a meagre SFr18 billion (the federal government puts this at SFr25 billion). This shortfall could be met by imposing a small tax on financial transactions, they suggest. Savings could also be made through the rationalisation of the welfare system, and VAT hikes have also been mooted. Under current conditions, then, the scheme would be feasible. But this is without factoring in various known unknowns: possible outsourcing of some industries due to less competitive wages, or a global reduction in GDP due to many workers reducing - if not eliminating - the hours they work. “A step too far in the right direction2, was how economist Tobias Müller put it recently in the daily Le Temps, echoing the consensus of the Swiss political class.

At the practical individual level, finally, how it would affect the pockets of the Swiss middle class is unclear. For those earning more than the minimum amount, the only difference would be that the first SFr2,500 of their salaries would be “re-packaged” as UBI. Being presumably tax-exempt, the measure therefore would mean an incremental gain but ultimately a maintaining of the status quo. An employee in an international organisation complained to me about the lack of clarity communicated both by the campaign and the government on the initiative: the actual vote hinges on three short constitutional amendments to ensure a “dignified” minimum income for the population, but details are scarce. Although she is “of course in favour” of the suggestion, she will thus vote against it. The middle and upper classes of Swiss society simply haven’t been convinced of the need for such radical change, she said. Who benefits?

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Ultimately, at all levels of politics and society, the strength of the proposal is also its weakness. Its vague, normative nature has attracted interest, but the lack of clarity around how it would work concretely and how it would affect the income of the majority of Swiss people has undercut any chance of success. Current indicators suggest it will be roundly rejected. The always out-on-a-limb Greens are the only political party to announce support. A recent opinion poll found that 72 per cent of the population were opposed to the measure.

The amount of air-time and attention it has received will nevertheless be perceived as a success by proponents. The broad nature of the proposal and the sometimes flamboyant campaign (last week they unveiled the largest campaign poster in history in Geneva (see above); the Guinness Book of Records was on hand) highlighted that their major goal was not to meticulously rewrite Swiss legislation but to kickstart the debate on their terms. The first rule of negotiation theory is to bid high. That the direct democracy system here allows for such radical proposals (whether progressive or lamentable, like some previous votes on immigration) is a boon for the international efforts to raise awareness of this future reordering of welfare.

As referendum season continues elsewhere in Europe, there may be a lesson for campaign strategists. Emotive issues are sure to attract commentary and vocal support, but the silent majority is more pragmatic than they are often given credit. It is one thing to aim for Marx’s vision of an economic system allowing us to “hunt in the morning, fish in the afternoon, rear cattle in the evening, and criticise after dinner”: voters want to know how the hunting rights and fish quotas would operate before signing up.