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Play it again, Salmond

Time and again, Scotland’s First Minister has taken on the naysayers and won. He is a keen gambler b

Late on the evening of 6 May, Alex Salmond took to the stage of a nightclub in Edinburgh's New Town and performed the kind of routine of which a professional stand-up comic would have been proud. A few hours earlier he had learned that he'd been re-elected First Minister of Scotland. That in itself was cause aplenty for celebration. But Salmond's and the crowd's unconfined jubilation was enhanced because the Scottish National Party (SNP) had not only gained the most MSPs, it now had an overall majority. Under the byzantine electoral system promoted by the Labour Party this was never supposed to happen. Now, amazingly, it had. In a parliament of 129 MSPs, the Nationalists had 69. Salmond's joy was overflowing.

Salmond was introduced by Angus Robertson, the SNP's leader at Westminster. As he drove that morning from Glasgow to Edinburgh across the Central Belt, it had occurred to Robertson that every constituency he was passing through was now held by the Nationalists. But, as ever, Salmond was able to trump his campaign director. Affecting a broad Scottish accent, which comes and goes depending on who he is talking to, Salmond said that a similar thought had occurred to him as he flew south from his own count in Aberdeen. "I was thinking that a' the seats I flew o'er in ma helicopter were yellow."

He had also realised, he added, that every seat in which Ed Miliband had campaigned had been lost by Labour. To raucous cheering, he said: "If you chart every stop on the trail of doom of Ed Miliband's individual constituency visits to inspire Labour activists who were somewhere on the streets of Scotland, the SNP won every one of the seats. Mind you, we won all the seats that weren't paid visits as well."

No one does hubris with more barefaced cheek than Salmond. When things are going well, his confidence, of which he has a surfeit, overflows. It is not blood that courses through his veins, a pundit once opined, but optimism. Keen gambler that he is, Salmond exudes hope, but it is born of pragmatism, not delusion. As a backer of horses, he studies form with the same intensity as he does the ramifications of the Barnett formula. Once upon a time, he and the late Robin Cook were rival newspaper tipsters. Cook may have known how to groom horses, Salmond claimed, but he knew better - as the racing records apparently showed - how to spot a winner.

His competitiveness is legendary. The only election he has ever lost occurred in the late 1970s, when he stood for the student presidency of St Andrews University - then, as now, as Conservative-inclined as the Monday Club. Ask Salmond by how many votes he was defeated and he reels the figure off with the chagrin of someone whose grief knows no bounds. His main opponent was called Bainbridge and throughout the campaign Salmond could not resist calling him Braindamage, something which, he later conceded, may not have helped his cause. Nor was he a generous loser When this was pointed out to him he quoted the racing driver Jackie Stewart: "Show me a gracious loser, and I'll show you a loser."

Some view his pugnaciousness as arrogance, others as archetypically Scottish. It is probably a mixture of both. In person, he is affable, engaged, witty, feisty, occasionally peppery, always eager to offer an anecdote. The worst a recent biographer could find to say about him was that he sometimes shouted at civil servants. His memory of facts and statistics is geekish. As a fan of Heart of Midlothian FC (Hearts), he can reel off the names of who played in what cup tie back to the days when footballs were made of leather and Bovril was the half-time drink of choice. As a golfer, he knows not only who won the Open championship where and in which year, but what they scored in each round. It is odd, therefore, that one of the criticisms levelled at him is his lack of attention to detail. Like Winston Churchill, he has a desire to win arguments and swat opponents with rhetoric and that tends to obscure his interest in the nitty-gritty of policy.

Fight on three fronts

What cannot be gainsaid, however, is that Sal­mond is - as much as any other political leader in a western democracy - the unchallenged and acknowledged star of his bailiwick. Moreover, he is popular. Polls consistently put him ahead of his party in terms of public approval and he is far more popular than the Nats' avowed aim of independence. Love him or loathe him, he cannot be ignored.

Opponents in other parties attempt to use his ubiquity to the SNP's detriment. Salmond, they insist, is a one-man band, the only soloist in the orchestra. A few years ago this was perhaps true. Today it smacks of desperation or, worse, complacency and denial. Were Salmond to fall under a bus, those lining up to become his successor might not be legion, but they would be several and serious, and would include his deputy, Nicola Sturgeon, and others such as Michael Russell, the education secretary, and the justice secretary, Kenny MacAskill - on whose say-so Abdelbaset Ali Mohmed al-Megrahi, the only person to have been convicted of the Lockerbie bombing, was released from prison in 2009.

Nor is Salmond unaware of this. At the outset of this year's election campaign, he said that the SNP proposed to fight it on three fronts: its record in government, its vision for Scotland and the quality of its "team". It was a gauntlet the other parties, most notably Labour, chose to disregard. Instead, the Scottish Labour leader, Iain Gray, preferred to concentrate his attack on the Tories at Westminster and the Cameron-Clegg coalition, even though it was pointed out repeatedly that they were not standing for election in Scotland. It was a huge tactical error. As the six-week-long campaign unfolded, the Nats moved from a distant second in the polls to command an insurmountable lead.

Time and again, it appeared it was Salmond, as much as his party, that the public supported; he was a gilt-edged asset in whom countless Scots were prepared to place their faith. In contrast to other party leaders in Scotland, he has the notable advantage of not having to look over his shoulder whenever he wants to say or do anything. When Labour is in need of ­succour in Scotland it sends for so-called big beasts such as Gordon Brown, Alistair Darling and Douglas Alexander. If Annabel Goldie, the erstwhile Conservative leader, wanted a shoulder to cry on, she could always depend on David Cam­eron, who is even less appealing to Scots than Margaret Thatcher. Meanwhile, the Lib Dem leader, Tavish Scott, tried desperately to distance himself from Nick Clegg, but to no avail. For his pains and for the loss of 11 of his 16 MSPs, he had no option but to resign. Was he, like Gray and Goldie, told by his southern masters that enough was enough?

For Scots, who perceive such interference as patronising, the signals that these moves send out are not reassuring. Salmond is far too savvy not to use this to his advantage. On BBC2's Newsnight recently, he asked Jeremy Paxman to allow him to finish his answer, after which Paxman would be free to patronise him. Such quick thinking endears him to Scots, who are constantly told they are not capable of managing their own affairs though other, even smaller nations appear perfectly able to do.

Similarly, the sight of expat Scots, such as the novelist Andrew O'Hagan, the historian Niall Ferguson or the professor of media Tim Luckhurst, denouncing the SNP and bemoaning the idea of independence only plays to Salmond's advantage. As he is well aware, nothing irks Scots so much as compatriots who've gone elsewhere telling those who stayed at home how they must vote. Salmond is happy with such adversaries, knowing that their influence achieves the opposite of what they intend.

Politics has been a way of life for Alex Salmond virtually since he was born nearly 57 years ago in Linlithgow, West Lothian - where, as he once told me, his putative biographer, "much of Scottish history was made and unmade". His parents were both civil servants, but the chief influence on his childhood was his grandfather, the town's plumber, who took him on tours spiced with tales from Walter Scott and Blind Harry. "For example, he showed me the ground where Edward I had camped before the Battle of Falkirk; he showed me the window from where the Regent Moray [James Stewart, 1st Earl of Moray] was shot dead in the street."

At primary school he savoured his first election victory after promising a free ice cream to those who voted for him. It is, say his critics, the kind of carrot he continues to offer without explaining fully how he intends to pay for it. As a schoolboy, he was unable to participate as much as he would have liked in sport because he was asthmatic. He made his biggest impact as a boy soprano. Singing the title role in Gian Carlo Menotti's Amahl and the Night Visitors, he received a warm review in the local newspaper and, had his voice not broken at the wrong moment, might have gone on to pursue a professional singing career. A novelty CD, released in 1999 to raise funds for the SNP, shows what a loss he was to the performing arts.

It was at St Andrews - long the most anglicised of the Scottish universities - where he studied medieval history and economics, that he joined the SNP after having an argument with a Labour-supporting girlfriend. On leaving university, he joined the department for agriculture and fisheries for Scotland and then worked for the Royal Bank of Scotland as an assistant to its chief economist. In 1981, he married Moira, who is 17 years his senior and who had been his boss in the civil service; the couple have no children. Then, in 1987, he ousted the incumbent Conservative MP for Banff and Buchan, Albert McQuarrie.

Back to Holyrood

It was the beginning of an enduring love affair with Westminster that he has never disguised, while attempting to disengage his country from it. Three years later he became SNP leader and a decade thereafter, having seen Scotland's parliament reconvened following a hiatus of 300 years, he stood down. At the time the decision was viewed with suspicion and fed rumours, which he revelled in acknowledging. He was, he told me on the day he announced his resignation, supposed to be terminally ill or have accumulated mountainous gambling debts or be having an affair with Sturgeon.

None was true. Salmond had always vowed to serve ten years as leader and, having done that, he intended to spend time reducing his golf handicap. In 2004, however, following John Swinney's resignation from the SNP leadership, he was back and determined to make the SNP the party of government. First, however, he had to win a seat that was far down the Nats' winnable list. His victory in Gordon, in north-east Scotland, with just over 2,000 votes to spare was symbolic, inspiring and typical, coming from behind in the polls to ease ahead in the final straight and romp lengths clear as the finishing line drew near.

It was a gamble that might have ended his career, had it not paid off. But it is at the root of Salmond's success, and those opposed to independence overlook it at their peril. These are the same people with the same tired and negative arguments who said a Scottish parliament would never work and that, if it did, there would never be a Nationalist government and that, if ever that came to pass, it would never in its wildest dreams have a majority of MSPs.

One by one, Salmond has overcome the odds to make all of these a reality. Who, four or five years hence and irrespective of what the pollscurrently predict, would bet against him delivering independence?

Alan Taylor edits the Scottish Review of Books

This article first appeared in the 23 May 2011 issue of the New Statesman, Obama 2.0

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 23 May 2011 issue of the New Statesman, Obama 2.0