Shadow health secretary and Labour leadership candidate Andy Burnham speaks during the general election campaign. Photograph: Getty Images.
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Andy Burnham's centrist pitch shows he wants to defy Tory caricature

By adopting a pro-business message and admitting the deficit was too high,  the Labour leadership candidate has frustrated hopes he would turn left. 

When the Labour leadership race began, the Tories immediately identified Andy Burnham as the candidate they wanted to win. The hope was that he would merely be "Miliband with a prettier face" or even tilt leftwards. But Burnham's first speech of the campaign, delivered to business leaders at Ernst & Young, showed that he may not be the Labour leader of their dreams. In the symbolic location of the City of London, the shadow health secretary declared that the party had too often failed to tell business that "we value what you do – creating jobs and wealth." Entrepreneurs, he said, "will be as much our heroes as the nurse or the teacher", countering the impression of a party concerned with the public sector alone. 

In a passage reminiscent of the Tories' mantra that strong public services depend on a strong economy, he added: "Labour must always champion wealth creation, and show we understand that, if we want world-class public services, and if we want high-skill, high-wage jobs, then we must wholeheartedly support the businesses that create the revenue to pay for them." It was a signal that he would never deliver a speech in the mould of Miliband's 2011 "predators and producers" address.

He combined this attempt to reset Labour's relations with business with an admission that the deficit was too high in the years before the crash - answering the spending question that haunted Miliband in the final leaders' TV event. He criticised the party for entering the election "with business and the public unclear on how Labour will balance the books, or when we will do so." In an attempt to pre-empt Tory criticism of his past role as chief secretary of the Treasury from 2007-08, he noted that they had described the spending settlement he delivered as "tough". 

Burnham's policy-rich speech - he also promised to introduce a UCAS-style system for apprenticeships and urged the government to hold the EU referendum by autumn 2016 - also saw him define his personal history and character (something Miliband struggled to do). He was, he said, "the comprehensive lad who went to Cambridge and then into the cabinet". Miliband similarly attended a comprehensive but his north London upbringing and Marxist father meant he failed to avoid being framed as an effete metropolitan. Burnham, by contrast, was able to humbly present himself as "the son of a telephone engineer and a GP receptionist who moved heaven and earth to make sure my brothers and I would be the first in our family to go to university". 

His centrist pitch will make it harder for his Labour opponents to define him as the candidate of the left (a challenge for Yvette Cooper, who seeks to offer a third way between Burnham and the "Blairite" Liz Kendall) and for the Tories to do so. He may have socialist instincts on the NHS ("the public NHS is what works") and free schools (opposing their establishment in areas with surplus place) but then so do most of the public. 

Burnham's greatest hindrance remains his record of service in the last Labour government. While he will have to constantly rebut Tory attacks on his past, the post-2010 Kendall would be able to avoid them altogether. But by demonstrating early on that he has learned from the failure of Labour's economic message he has strengthened his candidacy. The real test, should he be elected, would be sustaining his centrist strategy. Just as successive Tory opposition leaders promised to modernise their party but tilted rightwards under pressure, so Burnham would face pressure to head left if his approach failed to deliver early results. But by signalling that he wants to "rebuild the broad coalition of voters that put us into power in 1997" he has, for now, defied Tory caricature. 

George Eaton is political editor of the New Statesman.

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Is TTIP a threat or an opportunity?

TTIP offers potentially huge opportunities to both Europe and the US - we should keep an open mind on what the final agreement will mean.

Barack Obama made it abundantly clear during his visit to the UK that if Britain left the European Union then it would be quite some time before we would be able to negotiate a trade deal with the United States. All the more reason to examine carefully what the Transatlantic Trade and Investment Partnership (TTIP) will mean for the UK. For Labour this is especially important because a number of trade unionists and Party members have expressed concerns about what TTIP could mean.

The economic worth of such a partnership between the European Union and the US has been questioned and it has been frequently stated that TTIP could give multinational companies unprecedented influence and undermine the British NHS.

With regard to the economic benefits of TTIP there are few that would argue that there are no economic gains to be achieved through the partnership. The question is to what extent economic growth will be stimulated. On the positive side the European Commission has argued that an agreement could bring economic gains of between €68 billion to €119 billion per year to the EU (0.3% to 0.5% of GDP) and €50 billion to €95 billion (0.2% to 0.4% of GDP) to the US. For Britain, this means that an agreement could add up to £10 billion annually to the UK economy.

On the negative side, a study commissioned by the European United Left/Nordic Green Left Group in the European Parliament has maintained that TTIP would bring only “limited economic gains”. These gains have to be weighed, it was argued, against the “downside risks”. Those risks have been identified as coming from the alignment of standards in areas such as consumer safety, environmental protection and public health.

These are important concerns and they should not be quickly dismissed. They are made all the more important because the existence of already low tariffs between the EU and the US make the negotiations to reduce non-tariff barriers to trade all the more significant.

There are a number of areas of concern. These include food standards and the regulation of GM crops and the worry that the EU’s focus on applying the environmental precautionary principle might be weakened. The European Commission, which has a responsibility for negotiating TTIP on behalf of the EU, is however acutely aware of these concerns and is mindful of its legal responsibility to uphold, and not to in any way weaken, the agreed legal standards to which the EU adheres. A concern has been expressed that irrespective of what European law may say, TTIP could undermine those standards. This I find difficult to accept because the ‘rule of law’ is absolutely central to the negotiations and the adoption of the final agreement.

But the EU is mindful of this concern and has brought forward measures which have sought to address these fears. The latest proposals from the Commission clearly set out that it is the right of individual governments to take measures to achieve public policy objectives on the level that they deem appropriate. As the Commission’s proposal states, the Agreement shall not affect the right of the parties to regulate within their own territories in order to achieve policy objectives including “the protection of public health, safety, environmental or public morals, social or consumer protection or promotion and protection of cultural diversity”.

Of course, this is not to suggest that there should not be vigilance, but equally I believe it would be wrong to assume the theoretical problems would inevitably become reality.

The main area of concern which has been expressed in Britain about TTIP relates to the NHS and the role of the private sector. Under the Investor-State Dispute Settlement (ISDS) provisions investors would be able to bring proceedings against a foreign government that is party to the treaty. This would be done in tribunals outside the domestic legal system. If a Government is found to be in breach of its treaty obligations the investor who has been harmed could receive monetary compensation or other forms of redress.

The concern is that the ISDS arrangements will undermine the ability of democratically elected governments to act on behalf of their citizens. Some have maintained that measures to open up the NHS to competition could be made irreversible if US companies had to be compensated when there is a change of policy from a future Labour Government.

In response to these concerns the European Commission has proposed an Investor Court System. This would be based on judgements being made by publicly appointed and experienced judges and that cases would only be brought forward if they were precisely defined. Specifically, it is proposed that cases would be limited to targeted discrimination on the basis of gender, race or religion, or nationality, expropriation without compensation or the denial of justice.

Why, you might ask, is there a need at all for a trans-national Investor Court System? The reason in part lies in the parlous state of the judicial systems in some of the relatively recent EU accession countries in Eastern Europe. To be frank, it is sadly the case that there are significant shortcomings in the judiciary of some countries and the rule of law is, in these cases, more apparent than real. It is therefore not unreasonable for investors to have an international framework and structure which will give them confidence to invest. It should also be noted that there is nothing proposed in TTIP which contradicts anything which is already in UK law.

We need to remember too that this is not only about US investment in Europe, it is also about European investment in the US. No US-wide law prohibits discrimination against foreign investors, and international law, such as free trade and investment agreements like TTIP, cannot be invoked in US courts. The Investor Court System would therefore benefit European companies, especially Small and Medium Sized Enterprises. 

It is of course impossible to come to a definitive conclusion about these provisions because the negotiations are ongoing. But it would surely be unwise to assume that the final agreement would inevitably be problematic.

This is especially true regarding the NHS. Last year Unite the Union commissioned Michael Bowsher QC to provide an opinion. His opinion was that “TTIP does pose a threat to a future government wishing to take back control of health services”. The opinion does not express a view on whether TTIP will “force” the privatisation of the health service (as some have claimed) and Bowsher admits that much of the debate is “conducted at a rather speculative level” and he has been unable to produce any tangible evidence to support his contention about future problems. On the other hand, it is the case that there is nothing in the proposed agreement which would alter existing arrangements for compensation. There are of course many legal opinions which underpin the view that existing legal arrangements would continue. While I accept that it is theoretically possible for the Bowsher scenario to occur, it is nevertheless extremely improbable. That is not to say that there ought not to be watertight safeguards in the agreement, but let us not elevate the extremely improbable to the highly likely.

A frequently heard criticism of TTIP is that the negotiations between the US and the EU are being conducted in ‘secret’.  Greenpeace, for example, has strongly sought to make this a central part of their campaign.  Although the Commission publishes EU position papers and negotiating proposals soon after they are tabled, it is impossible to see how complex negotiations of this kind can be practically conducted in public.  However, I believe that the draft agreement should be made public well before the final decisions are taken.

Once the negotiations have been concluded, the draft agreement will be presented to the European Council and the European Parliament, both of which have to agree the text. The European Council is, of course, made up of representatives of the governments of the EU and the European Parliament is democratically elected. Both Houses of the British Parliament will also debate the draft and there will need to be parliamentary approval of the agreement.

Transparency and democratic scrutiny are two things which there cannot be too much of. But, in practical terms, it is difficult to see how there could be more of either without making it nigh on impossible to secure such a complex agreement. Unite, of which I am a member, and others are quite right to express their concerns about TTIP, but let’s not exaggerate the potential difficulties and let’s not assume that the worst case scenario will always come about. TTIP offers potentially huge opportunities to both Europe and the US, and we should therefore at least keep an open mind on what the final agreement will mean.

Wayne David is the Labour MP for Caerphilly and is Shadow Minister for Political Reform and Justice. He is a former Shadow Europe Minister and was a junior minister in the last Labour government.