Speaker cornered

John Bercow’s attempts to reform parliament are being threatened by a small cabal of right-wing Tory

In a speech to the Hansard Society on 30 November, the new Speaker of the Commons, John Bercow, said he aimed to "dynamite the past arrangements . . . that allowed the expenses disaster to take place . . . with as much vigour as Guy Fawkes". At the same time, however, he himself was being made the target of a latter-day parliamentary plot.

Five months previously, Bercow had beaten nine other candidates to the sacred post of Speaker on a reforming, "clean break" platform. Despite criticism over alleged claims for £45,000 to modernise the Speaker's residence for his children, he was soon showing signs of living up to that mandate. Defying pressure to do otherwise, he backed the "rough justice" of Thomas Legg's retrospective limits on claims. Bercow also set about strengthening the legislature against the over-mighty executive, pressing for elected select committee chairs, backing Friday (and September) sittings and, from his first day in the post, speeding up questions in the House.

It is often said that Bercow's support in last June's election came largely from the Labour side of the House; however, a number of Conservatives who voted for other candidates admire his record to date. Even David Cameron, recently hostile, has backed Bercow, and has demanded that Conservatives in the Speaker's Buckingham constituency give him their full support against his challenger Nigel Farage, of the UK Independence Party. The former foreign secretary Malcolm Rifkind speaks for many when he tells me: "Although I did not vote for Speaker Bercow I believe he is carrying out his responsibilities in a conscientious and highly competent manner. It would, in my view, be the height of folly, and grossly unfair, to try and dismiss him after only a few months in office."

It's personal

Yet on the Tory back benches lurks a rogue band of backwoodsmen determined to do just that. Two of their number, Christopher Chope and Greg Knight, sit on the Commons procedure committee, which some observers expect to call for a fresh election by secret ballot for Speaker in the next parliament.

What are the rebels' motives? Chope and Knight are joined in their campaign against Bercow by Quentin Letts, the Daily Mail's parliamentary sketch-writer, and Nadine Dorries - known in the corridors of Westminster as "Mad Nad" - who has said: "I for one will be studying the procedure to call a Speaker re-election . . . and will have [it] engrained on my heart [sic] ready to go when the Conservative Party take power." It is rumoured that the plotters' choice to replace Bercow is Frank Field, a favourite of the Tory right ever since he urged Margaret Thatcher to remain in office in 1990.

Chope and his fellow conspirators have never forgiven Bercow for a "conversion" that drove the one-time Monday Club member to describe his party as "racist, sexist, homophobic and anti-youth". They saw a further betrayal in his willingness to oversee a government review of services for special needs children in 2007.

But the animus against the Speaker is also personal. It is little known, for example, that Chope sponsored Bercow when the latter first joined the list of prospective parliamentary candidates. Tory MPs say Chope is "obsessed" with the fact that Bercow's wife, Sally - despite going on to stand as a Labour councillor - attended his alma mater, Marlborough. She was vilified on the right for giving a refreshingly candid interview last month, in which she confessed to binge drinking and having slept with more than one man when in her twenties. The faux horror this provoked masked real political anger about the intriguing couple. As Dorries has said: "John Bercow's wife is reported to be a socialist. Does this matter? I think it does, a great deal."

According to critics of this rebellious cabal, there is also an even less noble motive at work here: simple snobbery. MPs have overheard Bercow described as an "oik" and "son of a minicab driver" - something of which he is proud. The rebels complain that Bercow is silencing them more in the House, though it is the more boisterous, public-school-educated MPs who cause most of the commotion that alienates the public. As one state-educated Tory MP tells me: "I thought these people learned at school to be magnanimous in victory, and gracious in defeat. They are bad losers."

Sources close to the Speaker's office even whisper of a strain of Tory anti-Semitism (Ber­cow is Jewish), a stain on the party of Benjamin Disraeli familiar to any reader of, say, Alan Clark's diaries. To his credit, however, Cameron welcomed the "milestone" of the "first person of Jewish faith" to be Speaker.

There is another question here. As the constitutional expert and Conservative life peer Philip Norton points out, no Speaker since Charles Manners Sutton in 1835 has been removed and denied re-election. "If a Speaker is denied re-election, what then happens to the defeated Speaker?" He would have to go to the Lords, Norton says. "If John Bercow were to be denied re-election at the start of the parliament, then there would have to be a by-election in Buckingham."

Those agitating for Bercow's removal are few in number, but we should not underestimate their determination. Were their plot to succeed, it would not just remove a reforming Speaker, but threaten parliamentary democracy itself.

James Macintyre is the political correspondent of the New Statesman

 

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James Macintyre is political correspondent for the New Statesman.

This article first appeared in the 11 January 2010 issue of the New Statesman, Obama: the year of living dangerously

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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 11 January 2010 issue of the New Statesman, Obama: the year of living dangerously