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In this week's New Statesman: the fall of the SWP

In this week's magazine: Edward Platt reports on the rape accusation that has destroyed the Socialist Workers Party and provoked a succession battle on the far left.

Image: Julian Makey/Rex Features.

In this week's issue of the New Statesman, Edward Platt reports on the rape accusation which has torn the Socialist Workers Party apart.

 

He traces the history of the party from Tony Cliff, the revered Trotskyist activist who founded the party in 1977 as "a voluntary organisation of individuals who understand the need to organise collectively to fight for the socialist transformation of society", to recent accusations against former national secretary "Comrade Delta". In the piece, Platt tells the story of the party, its achievements and its failures.

He writes:

The party's decision to investigate the allegation internally, through its disputes committee, rather than referring it to the police, is the most remarkable aspect of the affair: it has astonished people outside the SWP, and some within it, too. “What right does the party have to organise its very own ‘kangaroo court’ investigation and judgement over such serious allegations against a leading member?” wrote the former Socialist Worker journalist Tom Walker in his resignation letter. “None whatsoever.”

David Renton, who is also a barrister and has dealt with cases of rape and sexual harrassment, believes that it didn't occur to the disputes committee to suggest that the woman should go to the police - and one of its members later said, the committee had “no faith in the bourgeois court system to deliver justice”.

The alleged sexual harassment and rape of “Comrade W” by “Comrade Delta”, a senior SWP member, was a sign of an undemocratic and exploitative party ethic, according to many who left the party:

[The SWP’s] broader culture was also called into question. “When you treat human beings as disposable objects in the name of la causa, when appropriation of activists’ labour and good will is the norm, when exploitation of your own side goes unchallenged, sexual abuse is one probable outcome,” wrote Anna Chen, who worked unpaid on various SWP press campaigns, including Stop the War. She believed the SWP’s habit of “ripping off their activists for wages, thieving their intellectual efforts and claiming credit for their successes” had initiated a pattern of “diminishing regard for their members”, which had led to the point “where even someone’s body is no longer their own”.

You can read the full story in this week's New Statesman - available now in shops and online.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.