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The lost herd

When Gordon Brown became Prime Minister in 2007, he made great play of appointing figures from outs

On 11 May 2007, in a speech at the Imagination Gallery in the West End of London during which he announced his candidacy for the leadership of the Labour Party, Gordon Brown promised a "new politics" of openness, reform and change. He pledged to govern "in a different way", with a fresh style and new personnel. "I will reach out to put national interest before sectional interest," he said, "and I will form a government of all the talents, bringing people together to listen, to learn and solve problems, building on a broad sense of national purpose."

Within 48 hours of entering Downing Street as Prime Minister, on 27 June, Brown announced that the former United Nations deputy secretary general Mark Malloch Brown, the former first sea lord Admiral Sir Alan West, the former secretary general of the Confederation of British Industry Sir Digby Jones and Ara Darzi, one of the country's leading surgeons, would be ennobled and made ministers in government. Over the past two years, other non-politicians have joined Brown's ministerial ranks, including his former chief of staff and ex-head of the television regulator Ofcom, Stephen Carter, and the former City fund manager and multimillionaire Paul Myners.

Today, the Prime Minister's big tent is slowly being folded away, its frame dismantled, as one after another of the chief recruits to his "government of all the talents", called "goats" by Whitehall insiders, slips the ministerial tethers to graze in pastures new. Of the original quartet, only Lord West remains in office.

Should we be surprised? The Prime Minister is by reputation both a party-political tribalist and a keen centraliser of power - his former permanent secretary Andrew Turnbull described him as "Stalinist" and his former cabinet colleague Charles Clarke called him a "control freak". He always seemed an unlikely goatherd. Here was an opportunity for him to show the country his pluralist intentions and bipartisan credentials.

Tony Blair had been a strong advocate of big-tent politics: think of the late Roy Jenkins's report on proportional representation and Chris Patten's commission on policing in Ulster. Brown went beyond Blair, who deployed the great and the good from across the political spectrum only to advise, review and report, by bringing political outsiders directly into government.

Goats, however, are notoriously stubborn creatures, unpredictable and difficult to control. Malloch Brown became Lord Malloch-Brown of St Leonard's Forest in the County of West Sussex and was appointed minister of state for Africa, Asia and the UN at the Foreign Office. Within a fortnight of taking office, he had announced, much to the annoyance of Washington, that Brown and George W Bush would not be "joined at the hip" in the manner of Bush and Blair, a remark that seemed to suggest the end of the "special relationship".

When Malloch Brown resigned this month for "personal and family reasons", he said he remained "completely loyal to the Prime Minister". Yet reports since have suggested that the former international diplomat could no longer tolerate working in chaotic Whitehall, and had told colleagues that he had been party to better "strategic thinking" in Latin America and south-east Asia than in Downing Street. In a farewell salvo on Wednesday, Lord Malloch-Brown became the first senior minister to admit that British troops need more helicopters in Afghanistan - contradicting the Prime Minister and the Foreign Secretary - and he conceded that Brown's future looked "bleak". So much for loyalty.

His resignation was followed on 14 July by that of the Iraqi-born Ara Darzi - who, as Lord Darzi of Denham, was appointed by Brown as under-secretary of state at the Department for Health. Known as Robo-Doc for his pioneering work in the advancement of minimal invasive surgery and his use of surgical robots, Darzi fuelled speculation about an early election in October 2007 by publishing an unexpected interim report on his plans for NHS reform. He also angered campaigners, and Labour backbenchers, in a speech to the Lords in January 2008, by abandoning Lab­our's historic commitment to eliminate mixed-sex wards from NHS hospitals.

Darzi said he was resigning to focus on his medical work and academic research, but one has to ask: is this the time for a health minister to quit, as the Department of Heath grapples with a swine flu epidemic? He leaves the government having failed to see through the "once-in-a-generation" reforms he announced the government would be making to the NHS. Perhaps his only memorable contribution to political life is the time he leapt across the red benches in the Lords to save the life of a fellow Labour peer, Lord Brennan, who had collapsed after a heart attack.

Arguably the most controversial resignation - and appointment - among the goats was that of Digby Jones. The corpulent, conservative recent head of the CBI took the title Digby, Lord Jones of Birmingham, and became minister for UK trade and investment in the (then) Department for Business, Enterprise and Regulatory Reform. He quit the government after just 18 months in the post following a series of disagreements with Brown over spending and taxation, rows with civil servants, and a stream of gaffes - including some embarrassing remarks at a forum of Middle Eastern entrepreneurs. "We don't care what colour you are," he said. "We don't care if we can't pronounce your names and we don't care where your money comes from. We just want you to invest in our country." Jones then said: "I'm a goat, not a professional politician."

Since leaving government, Jones has spent his time criticising both Brown and civil servants, telling a Commons select committee in January this year that the job of junior minister was "one of the most dehumanising and depersonalising experiences a human being can have".

So who is left? The sole remaining goat from the original herd is the former first sea lord, Admiral Sir Alan West, who became Lord West of Spithead and was appointed under-secretary of state for security and counterterrorism at the Home Office by the Prime Minister in June 2007. Home Office press officers have since described him as "gaffe-prone", a "liability" and a "nightmare to manage". In November 2007, he questioned the government's plans to hold terror suspects for up to 42 days without charge, stating in a live BBC radio interview that he was not "totally convinced" of the case for change - only to perform a U-turn less than two hours later, after a hurried meeting with Brown.

His explanation: "Being a simple sailor, not a politician, maybe I didn't choose my words well." (The PM's spokesman issued his own memorable clarification: "I think he thought it was necessary to make sure his position was properly understood. I'm not sure he has changed his mind. Lord West made his position quite clear. Lord West gave his views quite clearly in his second statement.")

West is known for his bravery. In 1982, as the 34-year-old officer in command of the frigate HMS Ardent when it was sunk by Argentinian bombers during the Falklands conflict, he was the last to leave the sinking ship. His action earned him the Distinguished Service Cross. Nearly three decades on, the "simple sailor" remains the last man standing on the sinking ship of government. One source close to West says he has no plans to quit and that he is committed to his Home Office role - but adds "for the foreseeable future".

Brown's aides are curiously unwilling to lay any blows on the fleeing goats. One Downing Street aide told me each of them had "enrichgovernment" and that their contributions to public life "remain a genuinely positive story". What about Digby Jones? "Digby is Digby," I was told. "We knew he would be outspoken from the moment he was appointed."

But is this a genuinely positive story? One could argue that it was foolhardy to tread down this path in the first place. Political outsiders are, almost by definition, either ignorant of political rules, regulations, conventions and customs, or unwilling to conform to them. This was an accident waiting to happen.

Then there is the issue of ideology. As James Purnell (who resigned from the cabinet in June) has been busy pointing out, ideas matter, and constructing big tents in politics, welcoming as they may be, risks losing sight of this. New Labour was built on the assumption that modern politics is no longer ideological, substantive or divisive, that what matters is what works, and that there are bureaucratic, technical and pragmatic fixes to every political problem. This has proved to be a fiction. Bringing in outsiders to add expertise and experience to government is not new: Clement Attlee succeeded with the trade union leader Ernest Bevin, and Margaret Thatcher with the businessman David Young. Brown's mistake was to pretend that he could defy the laws of politics by appointing people who neither owed him party loyalty nor necessarily shared his political values. Jones, for example, is said to have discussed becoming a Con­servative MP once with the then Tory leader, Michael Howard. As head of the CBI, he had long opposed a range of Labour economic and social policies, chief among them the minimum wage. Why make him a Labour minister?

But, above all else, this is a story of a government of all the talents that could not keep those talents for long. On the one hand, we had a prime minister who thought he wanted independent goats in his administration but really needed loyal sheep; on the other hand, we had non-politicians who thought they could adapt to politics simply by virtue of their experience or expertise.

The shortsightedness identified by Lord Malloch-Brown and the bureaucracy singled out by Lord Jones are now hallmarks of modern British governance. The end result is a group of outsiders who have returned to the outside world, disillusioned, disappointed and depressed. That Lord Myners has announced he is leaving the Treasury to become a student of theology speaks volumes about life as a minister today. Whether we like it or not, politics will continue to be dominated by professionals.

Mehdi Hasan is senior editor (politics) of the New Statesman

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

This article first appeared in the 27 July 2009 issue of the New Statesman, On tour with the far right

Jeremy Corbyn. Photo: Getty
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Lexit: the EU is a neoliberal project, so let's do something different when we leave it

Brexit affords the British left a historic opportunity for a decisive break with EU market liberalism.

The Brexit vote to leave the European Union has many parents, but "Lexit" – the argument for exiting the EU from the left – remains an orphan. A third of Labour voters backed Leave, but they did so without any significant leadership from the Labour Party. Left-of-centre votes proved decisive in determining the outcome of a referendum that was otherwise framed, shaped, and presented almost exclusively by the right. A proper left discussion of the issues has been, if not entirely absent, then decidedly marginal – part of a more general malaise when it comes to developing left alternatives that has begun to be corrected only recently, under Jeremy Corbyn and John McDonnell.

Ceding Brexit to the right was very nearly the most serious strategic mistake by the British left since the ‘70s. Under successive leaders Labour became so incorporated into the ideology of Europeanism as to preclude any clear-eyed critical analysis of the actually existing EU as a regulatory and trade regime pursuing deep economic integration. The same political journey that carried Labour into its technocratic embrace of the EU also resulted in the abandonment of any form of distinctive economics separate from the orthodoxies of market liberalism.

It’s been astounding to witness so many left-wingers, in meltdown over Brexit, resort to parroting liberal economics. Thus we hear that factor mobility isn’t about labour arbitrage, that public services aren’t under pressure, that we must prioritise foreign direct investment and trade. It’s little wonder Labour became so detached from its base. Such claims do not match the lived experience of ordinary people in regions of the country devastated by deindustrialisation and disinvestment.

Nor should concerns about wage stagnation and bargaining power be met with finger-wagging accusations of racism, as if the manner in which capitalism pits workers against each other hasn’t long been understood. Instead, we should be offering real solutions – including a willingness to rethink capital mobility and trade. This places us in direct conflict with the constitutionalised neoliberalism of the EU.

Only the political savvy of the leadership has enabled Labour to recover from its disastrous positioning post-referendum. Incredibly, what seemed an unbeatable electoral bloc around Theresa May has been deftly prized apart in the course of an extraordinary General Election campaign. To consolidate the political project they have initiated, Corbyn and McDonnell must now follow through with a truly radical economic programme. The place to look for inspiration is precisely the range of instruments and policy options discouraged or outright forbidden by the EU.

A neoliberal project

The fact that right-wing arguments for Leave predominated during the referendum says far more about today’s left than it does about the European Union. There has been a great deal of myth-making concerning the latter –much of it funded, directly or indirectly, by the EU itself.

From its inception, the EU has been a top-down project driven by political and administrative elites, "a protected sphere", in the judgment of the late Peter Mair, "in which policy-making can evade the constraints imposed by representative democracy". To complain about the EU’s "democratic deficit" is to have misunderstood its purpose. The main thrust of European economic policy has been to extend and deepen the market through liberalisation, privatisation, and flexiblisation, subordinating employment and social protection to goals of low inflation, debt reduction, and increased competitiveness.

Prospects for Keynesian reflationary policies, or even for pan-European economic planning – never great – soon gave way to more Hayekian conceptions. Hayek’s original insight, in The Economic Conditions of Interstate Federalism, was that free movement of capital, goods, and labour – a "single market" – among a federation of nations would severely and necessarily restrict the economic policy space available to individual members. Pro-European socialists, whose aim had been to acquire new supranational options for the regulation of capital, found themselves surrendering the tools they already possessed at home. The national road to socialism, or even to social democracy, was closed.

The direction of travel has been singular and unrelenting. To take one example, workers’ rights – a supposed EU strength – are steadily being eroded, as can be seen in landmark judgments by the European Court of Justice (ECJ) in the Viking and Laval cases, among others. In both instances, workers attempting to strike in protest at plans to replace workers from one EU country with lower-wage workers from another, were told their right to strike could not infringe upon the "four freedoms" – free movement of capital, labour, goods, and services – established by the treaties.

More broadly, on trade, financial regulation, state aid, government purchasing, public service delivery, and more, any attempt to create a different kind of economy from inside the EU has largely been forestalled by competition policy or single market regulation.

A new political economy

Given that the UK will soon be escaping the EU, what opportunities might this afford? Three policy directions immediately stand out: public ownership, industrial strategy, and procurement. In each case, EU regulation previously stood in the way of promising left strategies. In each case, the political and economic returns from bold departures from neoliberal orthodoxy after Brexit could be substantial.

While not banned outright by EU law, public ownership is severely discouraged and disadvantaged by it. ECJ interpretation of Article 106 of the Treaty on the Functioning of the European Union (TFEU) has steadily eroded public ownership options. "The ECJ", argues law professor Danny Nicol, "appears to have constructed a one-way street in favour of private-sector provision: nationalised services are prima facie suspect and must be analysed for their necessity". Sure enough, the EU has been a significant driver of privatisation, functioning like a ratchet. It’s much easier for a member state to pursue the liberalisation of sectors than to secure their (re)nationalisation. Article 59 (TFEU) specifically allows the European Council and Parliament to liberalise services. Since the ‘80s, there have been single market programmes in energy, transport, postal services, telecommunications, education, and health.

Britain has long been an extreme outlier on privatisation, responsible for 40 per cent of the total assets privatised across the OECD between 1980 and 1996. Today, however, increasing inequality, poverty, environmental degradation and the general sense of an impoverished public sphere are leading to growing calls for renewed public ownership (albeit in new, more democratic forms). Soon to be free of EU constraints, it’s time to explore an expanded and fundamentally reimagined UK public sector.

Next, Britain’s industrial production has been virtually flat since the late 1990s, with a yawning trade deficit in industrial goods. Any serious industrial strategy to address the structural weaknesses of UK manufacturing will rely on "state aid" – the nurturing of a next generation of companies through grants, interest and tax relief, guarantees, government holdings, and the provision of goods and services on a preferential basis.

Article 107 TFEU allows for state aid only if it is compatible with the internal market and does not distort competition, laying out the specific circumstances in which it could be lawful. Whether or not state aid meets these criteria is at the sole discretion of the Commission – and courts in member states are obligated to enforce the commission’s decisions. The Commission has adopted an approach that considers, among other things, the existence of market failure, the effectiveness of other options, and the impact on the market and competition, thereby allowing state aid only in exceptional circumstances.

For many parts of the UK, the challenges of industrial decline remain starkly present – entire communities are thrown on the scrap heap, with all the associated capital and carbon costs and wasted lives. It’s high time the left returned to the possibilities inherent in a proactive industrial strategy. A true community-sustaining industrial strategy would consist of the deliberate direction of capital to sectors, localities, and regions, so as to balance out market trends and prevent communities from falling into decay, while also ensuring the investment in research and development necessary to maintain a highly productive economy. Policy, in this vision, would function to re-deploy infrastructure, production facilities, and workers left unemployed because of a shutdown or increased automation.

In some cases, this might mean assistance to workers or localities to buy up facilities and keep them running under worker or community ownership. In other cases it might involve re-training workers for new skills and re-fitting facilities. A regional approach might help launch new enterprises that would eventually be spun off as worker or local community-owned firms, supporting the development of strong and vibrant network economies, perhaps on the basis of a Green New Deal. All of this will be possible post-Brexit, under a Corbyn government.

Lastly, there is procurement. Under EU law, explicitly linking public procurement to local entities or social needs is difficult. The ECJ has ruled that, even if there is no specific legislation, procurement activity must "comply with the fundamental rules of the Treaty, in particular the principle of non-discrimination on grounds of nationality". This means that all procurement contracts must be open to all bidders across the EU, and public authorities must advertise contracts widely in other EU countries. In 2004, the European Parliament and Council issued two directives establishing the criteria governing such contracts: "lowest price only" and "most economically advantageous tender".

Unleashed from EU constraints, there are major opportunities for targeting large-scale public procurement to rebuild and transform communities, cities, and regions. The vision behind the celebrated Preston Model of community wealth building – inspired by the work of our own organisation, The Democracy Collaborative, in Cleveland, Ohio – leverages public procurement and the stabilising power of place-based anchor institutions (governments, hospitals, universities) to support rooted, participatory, democratic local economies built around multipliers. In this way, public funds can be made to do "double duty"; anchoring jobs and building community wealth, reversing long-term economic decline. This suggests the viability of a very different economic approach and potential for a winning political coalition, building support for a new socialist economics from the ground up.

With the prospect of a Corbyn government now tantalisingly close, it’s imperative that Labour reconciles its policy objectives in the Brexit negotiations with its plans for a radical economic transformation and redistribution of power and wealth. Only by pursuing strategies capable of re-establishing broad control over the national economy can Labour hope to manage the coming period of pain and dislocation following Brexit. Based on new institutions and approaches and the centrality of ownership and control, democracy, and participation, we should be busy assembling the tools and strategies that will allow departure from the EU to open up new political-economic horizons in Britain and bring about the profound transformation the country so desperately wants and needs.

Joe Guinan is executive director of the Next System Project at The Democracy Collaborative. Thomas M. Hanna is research director at The Democracy Collaborative.

This is an extract from a longer essay which appears in the inaugural edition of the IPPR Progressive Review.

 

 

This article first appeared in the 27 July 2009 issue of the New Statesman, On tour with the far right

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