Showing posts with label competition. Show all posts
Showing posts with label competition. Show all posts

9 June 2015

Yvette Cooper needs to do more than just talk about Nordic models

Britain’s Left has been indulging in worship of Scandinavian social democracy ever since the tide started ebbing on the New Labour project, most recently on prostitution reform and the SNP’s vision for an independent Scotland. Thinking wistfully of Borgen beats the hard work of actually reinventing socialism, but I haven’t heard so much excited talk about the ‘Nordic Model’ since I was at school and Helena Christensen was practically everywhere. Happy memories indeed.

Last month Yvette Cooper announced that one of the pillars of her leadership bid would be childcare:

campaign[ing] for universal childcare – as other countries, including Scandinavia, have. That means breakfast clubs, after-school clubs, holiday clubs and free nursery places and childcare available full-time not just for three- and four-year-olds but two-year-olds too.

More details were promised, but I’ve waited… and waited. And to be honest if she has a hope in hell of becoming Labour’s leader she’ll keep shtum on her vision of Scandinavian childcare: a big part of the Nordic early years model is deregulation of politically sensitive things like childcare standards, and it would be a bold leadership bid that argued for loosening staff-to-child ratios. Indeed Nick Clegg engineered a high-profile coalition feud over this very issue in 2013.

Back then Labour criticised Liz Truss for putting ‘quality and safety at risk’ with her plans to allow greater flexibility in childcare ratios. Shadow education secretary Stephen Twigg said that ‘a childminder can have the very best qualifications, [but] they still only have one pair of hands’. The attack was clumsy and ideological; the government's proposals were ‘to allow nurseries to relax ratios only where they hire highly-qualified staff’ and bring us more in line with the northern European countries so admired by Cooper, where childminders cope perfectly well with more children than currently allowed in the UK.

International comparisons of national mandatory minimum staff:
child ratios for childminder care by child age (Gov.uk)

What Cooper has missed is that Nordic social democracy is distinctly pragmatic, with privatised railways, free schools and competitive selection for the Eurovision song contest. And the Scandinavian approach of light touch regulation with more children per adult allows people with better qualifications to be employed: the Institute of Education’s research unit describes Sweden and Denmark’s childcare provision as ‘characterised by high levels of staff training, involving at least 3 years education at a post-18 level’.

With parents empowered and free from government edicts, there can be innovation in childcare – another hallmark of the sector in the Nordic countries. Increased resources are needed, but UK expenditure on childcare is well above the OECD average and comparable to Holland. And most metrics suggest Dutch childcare is pretty good.

So if Yvette Cooper wants to lead her party back from the political wasteland she needs to engage with the nuts and bolts of childcare reform. Simply hoping her party members lap up talk of Scandinavia as a justification for spending money was an approach that was tested to destruction by Labour in the 2015 general election – and Cooper is no Birgitte Nyborg.

First published by Coffee House on June 9th, 2015

30 May 2015

Bikes v Strikes

I was riding my bike home from central London earlier this week when I noticed there were a lot of black cabs snarling things up in rather a big way. ‘Ahh,’ I thought to myself. ‘That’ll be the strike over the iPhone app thing’. I pulled over to talk to a couple of friendly-looking cabbies, who filled me in as we talked about competition from Uber in the early Summer sun.

Surely The Knowledge gives them an edge over some silly piece of software, I asked the cabbies. They were adamant that they were indeed cheaper and more reliable. But apparently that wasn’t the point, as it turned out that their beef is less with Uber – which you can download at https://www.uber.com/cities/london – and more with Transport for London for allowing new entrants into the metered cab market.

Google Maps reporting traffic flows at the height of London's taxi strike
Like last year, the taxi drivers’ brief period of holding London hostage was the mother-of-all PR cock-ups. Unlike black cabs Uber drivers don’t go on strike – everyone knows that now – and making central London even tetchier by honking horns and clogging up the roads is a novel way to endear yourself to the population.

Yet as I weaved my way home on my bicycle I realised that here we had the political spectrum reduced to a single event: a monopoly administered by the Public Carriage Office snarling up London’s streets for everyone apart from those of us on two wheels, who are bound only by the Highway Code and a sense of survival (and coincidentally my closest shave in years was with a psychotic black cab a few months ago). That the police had promised arrests if the street blockades continued for any duration seemed a wonderful example of how cack-handed the state can be in resolving problems it has created.

Perhaps it is time for the Public Carriage Office’s operation to be reformed. Perhaps it is too late – Uber has joined the ranks of Google and Hoover as companies that now double up as verbs.

I haven’t taken a black cab in years, and the expense of a return trip into town on the tube still makes me wince. But here I was pedalling through Pimlico and enjoying the glorious weather with my progress unfettered by cost or regulation, while others suffered because of people getting grumpy about losing a monopoly licensed by the state.

And I pondered why cycling is associated with the lefty beard and sandals brigade. London’s Mayor and our PM both ride bikes, yet cycling is still regarded as distinctly… Huppertesque, some might say. Indeed the entire Liberal Democrat parliamentary party could ride to work on four tandems.

But cycling is a mode of transport that allows total freedom of movement, requires little government intervention and has ubiquitous vehicle ownership – all solid right wing values. The advent of the modern ‘safety cycle’ in the 1890s played a key part in the emancipation of the working class. And travel by Boris Bike spikes over Christmas and during tube strikes, occasions when state-controlled public transport fails Londoners. Tuesday’s action by black cab drivers rammed home just how inherently Tory the humble bicycle really is.

First published by Platform 10 on May 30th, 2015

2 April 2015

East Coast showed us what a renationalised railways would be like

Two years ago, I was on my way back to London from my first Party conference in Manchester. The train carriage was rammed, with the heating inexplicably on full blast. This situation was made worse by the buffet being closed, so with no water for the two hours we were stuck in oven-like conditions.

Not fun – but not exactly life-endangering, and Virgin Trains offered me two first class tickets to any part of their network as compensation.

I mention this merely because it is a good example of how, under privatisation, our railways now ‘do’ customer service. Yes, there is still enormous room for improvement. And, yes, train travel can be utterly maddening – as anyone stuck at Finsbury Park after Christmas knows only too well. But the upshot of my trip back from conference was that I thought Virgin Trains were actually bothered about whether or not I’d want to travel with them again.

Why, then, is renationalising the railways so bizarrely popular – even with Conservative voters? People almost willingly ignore how much better our trains are than the squalid service that state-owned SNCF runs to some loose timetable on the other side of the Channel.

Yet you don’t have to go to France to see what a renationalised railways would be like for the travelling public: look no further than our own East Coast service, which was run by the Department for Transport for five years. The chaos at King’s Cross last Christmas was caused by state-owned Network Rail, but compounded by the customer service of then nationalised East Coast trains, whose operation propped up the bottom of the national railways performance tables before the company was returned to the private sector a month ago.

'Privatisation' gave Britain the world's fastest steam locomotive
(Telegraph)
Let me explain it another way.

Remember how privatised Virgin Trains made up for my poor travelling experience? Well, in early January my cousin was travelling from Aberdeen to Kings Cross on ‘nationalised’ East Coast. My cousin has muscular dystrophy and is stuck in a wheelchair. Alas, the train’s disabled lavatory was out of service for the entire seven hours of the journey – and his request for help via the disabled assistance button was ignored.

Not unreasonably, he wrote to East Coast. The state-owned company replied – two months later – by sending him a voucher for £10. A tenner! I can’t imagine Richard Branson would regard ten quid as anything other than a slap in the face of a disabled man ignored by the train staff, and unable to pee for the best part of a public sector working day.

Many people remember British Rail as a proxy for a halcyonic Britain that never existed. But it was free enterprise that gave us our railway glory days, with ‘privatised’ LNER’s Mallard breaking the speed record and Glasgow’s ‘privatised’ North British dominant as the world’s largest locomotive builder, selling to all corners of the globe.

Nationalisation in 1948 put a stop to all that: British Rail was an introspective operation that closed down railway lines, treated passengers badly and built locomotives that we couldn’t export. Its head office was nicknamed ‘The Kremlin’ – and with good reason.

Miliband’s lot would put the faceless apparatchiks at the Department for Transport back in charge of our trains; leaves on the line would be the least of our worries. The East Coast franchise was a timely reminder of what renationalised railways would be like – and my cousin has the £10 voucher to prove it.

First published by Conservative Home on April 2nd, 2015

17 December 2014

Britain was built by private enterprise – so why is ‘privatisation’ so unpopular?

Lately there’s been a lot of talk about the ‘P’ word: privatisation. Ed Miliband’s team hasn’t done the hard policy work to revitalise Labour as a party of government, and it is beginning to show. His platform for next May has a lot of sticky plaster policies, but very little that addresses structural problems like the housing market and transport costs, to name two issues close to my heart. Instead, catnip like ‘no privatisation of our NHS’ and ‘reversing the privatisation of the railways’ is being wheeled out to fill the Left’s policy void.

This conveniently ignores the Blair and Brown government’s enthusiasm for market – rather than state – solutions. Some people know about Hinchingbrooke, the NHS hospital so ineptly run by the state that Andy Burnham ‘privatised’ it when he was Secretary of State. Fewer know that Circle – the private sector company that took control of Hinchingbrooke along with a 50 per cent staff mutual – has done a decent job of turning around something that was – if you’ll excuse the pun – a real hospital pass.*

Just why is privatisation seen as so politically toxic, when much of what we love in Britain has been shaped by private enterprise? Take tertiary education, where students attend the privately run institution of their choice. Our universities have always been ‘privatised’, with the model of academics and faculties competing for research funding well established. Yet the idea of such a system for our primary and secondary schools would currently be politically unacceptable, even though universities like Cambridge and UCL are world beaters – just look at the latest QS rankings, where four out of the world’s top six institutions are British.

And that’s the whole point of privatisation: creating a market where competition drives improvements in quality and efficiencies in price. Try telling that to the British public, who overwhelmingly want to see the railways renationalised – including a majority of Conservative voters. People dislike their trains being run by foreign state operators, but isn’t the point of the railways to move people around, rather than be some sort of national bauble?

Competition has been fantastic for train passengers in the post-British Rail era. This is hardly surprising given that the great triumphs of Britain’s railways were the product of healthy rivalries between private companies – from the Rainhill Trials through to the speed wars in the 1930s that resulted in Mallard, the world’s fastest locomotive. Our railway infrastructure was delivered by companies not wanting to miss out on market share, but today the government is desperately playing catchup after decades of neglect under state ownership – and building HS2 at a pace that would have appalled our Victorian ancestors.

The 2015 General Election campaign is already well underway, and perhaps you’ll hear someone talking about the evils of privatisation in a queue at the Post Office, only to realise that you’ve never had to endure a 40 minute wait at Sainsbury’s or Tesco. That’s because the supermarkets are in competition, and if they made their customers wait that long they know they’d be out of business. They’re also fairly good at keeping down costs for their users – something that we desperately need in our NHS if the principle of free healthcare for all is to survive the challenges of an ageing population and increasing treatment costs. So that’s the sort of privatisation we should be talking about: driving up quality of service, bringing down costs – and no lengthy waits before the automated voice directs you to ‘Till Number Three’.

First published by Coffee House on December 17th, 2014

* About two weeks after this was published Circle announced that it was handing back its operation of Hinchingbrooke to the state. Writing in the Guardian, former Labour MP Tom Levitt said that 'the failure of Circle at Hinchingbrooke hospital, in Huntingdon, where the company very nearly managed to remove an operating loss inherited from the public sector, was due to the failure of the NHS to deliver its side of the bargain, not least the over-demand on A&E which was well above what the company was told to expect.'

8 December 2014

David Cameron and the Pope as bosom eurobuddies? I didn’t see that one coming.

Did you miss the big speech on Europe? Fresh from pushing his followers towards a more liberal line on gay rights, it was David Cam – actually it was Pope Francis who made the most telling intervention on the future of the EU, warning MEPs in Strasbourg that the European project was ‘no longer fertile and vibrant’ and ‘slowly losing its own soul’.

He is right. Millions of British small businesses already know that the EU’s appetite for regulation is denting their competitive advantage – Brussels-approved oven gloves being the most recent example of a regulatory mindset that is at odds with the founding vision of creating wealth and security through trade between nations. Everyone in business has their own examples of how Europe’s bureaucrats have given them the benefit of their limited wisdom: vacuum-cleaner manufacturer James Dyson is critical of ‘sustainability legislation that rewards sustained mediocrity and waste’ and is taking the European Commission to court over its latest efficiency regulations. I know who I’d trust to make decent domestic products – and it isn’t Jean-Claude Juncker.

That the European Commission is so blind to the realities of commerce is hardly surprising. Only a handful of the 28 commissioners have any meaningful commercial experience running the sorts of businesses that ultimately pay their bills. The vast majority come from the law, academia and professional political careers, which perhaps explains their surprise that an unexpected bill for £1.7bn might piss off the unfortunate people having to cough up the readies. Likewise a shortfall to the tune of €259bn would prompt a fairly robust internal efficiency drive in the business world.

There is an arrogant culture of command economics, and you know we’re in deep trouble when the Commission President says ‘If Europe invests more, Europe will be more prosperous and create more jobs – it’s as simple as that’. Pope Francis’s description of the ‘bureaucratic technicalities’ of the EU’s institutions is spot on.

Over to the other speech on Europe: David Cameron was very good. Immigration is a big concern for people – I certainly found that canvassing back before the last general election. The UK’s system for redistributing wealth does throw up some clear incentives to up sticks from countries less well off than the UK. But remember that freedom of movement can also equate to asset stripping of nations, and in the past decade we’ve undoubtedly benefitted from harvesting some of the brightest, most laborious and entrepreneurial people from the EU’s newest members – and what their home country has gained in remittances, it has certainly lost in people with energy and innovation to drive their domestic economies forward. Tighter immigration controls may well be more palatable to scrapping tax credits for migrants (which I worry risks creating an underclass of migrants living on very, very little) but the depth of EU reform needed to restore controls over movement might require divine intervention.

So the battle to shape the future of the EU was laid out by two very different voices. One rooted in pragmatic politics, with a tougher line on immigration pitching to Labour’s blue collar voters as much as it is aimed at neutering, if not shooting, Nigel Farage’s fox. But it was the man from the Vatican whose critique resonated strongest with me, given the immense challenge of reforming the EU in the face of inertia from beneficiary states, not to mention the 23,000 people employed in Brussels’ ivory towers. Cardinal Bergoglio’s career was built on humble service and fiscal discipline with the Church’s resources, which sounds like something that the lawyers and professors of the Commission should be up for. But David Cameron and the Pope as bosom eurobuddies? I didn’t see that one coming.

First published by Platform 10 on December 8th, 2014

10 May 2014

How to win Eurovision: trust the market, not the suits

Cezar singing It's My Life (Eurovision)
There was a wonderful moment a couple of months ago when I realised just how awfully monolithic the BBC can be. The news had emerged (in a manner not too dissimilar to announcements from Moscow) that some apparatchik at Auntie had chosen Molly Smitten-Downes to represent the UK at this year's Eurovision song contest. In finest TASS Report style the cameras cut to dear old Molly singing what I rapidly realised was a truly terrible dirge. I don't want to bag her too much because Molly is taking one for the team, but her song manages to get people stop waving and cheering within the first 18 seconds – fatal for a big arena contest like Eurovision.

So Britain – a country that leads European thinking in the power of the free markets to drive quality – remains curiously statist in our Eurovision choices, with Molly just another hapless foot-soldier sent to the front. Those of you who have seen Enemy at the Gates will recall the scene where the Soviet soldiers advancing on the Germans are told to fight on with the weapons of their fallen comrades, and I can almost hear Molly's stage handler on the big night giving her that same sort of encouragement. It's a naff song that just blathers on about 'children of the universe' and 'power to the people'. Compare this with Cezar, last years' act from Romania: his song It's My Life left no-one in doubt that a bloke doing a gothic Transylvanian falsetto act really was having the time of his life. It was bonkers, brilliant and so obviously not a bureaucrat's pet choice.

Of course we know the markets are very good at picking winners, and proof of this is Sweden's Melodifestivalen, a national talent contest with the public and judges combining their votes through several televised heats, and an epic final in one of the country's major cities. I was living in Stockholm when the 2006 contest was on, and the primetime show (with a sell out live audience of 16,000) was charmingly quirky – and had some really good music. Sweden's mass public involvement in selecting its Eurovison entries has produced nine top-five finishes in the past 15 years – and two overall winners. Last year's entry Robin Stjernberg was really good. But in that time Britain has had two acts make the top-ten, and with three coming rock bottom. The BBC has resurrected Bonnie Tyler, dispatched novelty acts like Daz Sampson and seen Jemini collect a comprehensive nul points wooden spoon.

A winning Eurovision song needs support from people across the European Broadcasting Union – indeed you can usually hear the better songs playing in bars and clubs across the Continent over the summer. Conversely our artists have the press mentioning some play time on Radio Two. Smitten-Downes acknowledges that 'good music breaks through' Europe's cultural barriers, but sadly her song isn't at that level, and she'll be lucky to make it into the top ten acts in tonight's contest. Sweden, on the other hand, are hot favourites to win – yet again. It is time to put trust in the people, rather than a faceless suit in Broadcasting House.

POSTSCRIPT – Sweden finished 3rd and the UK came 17th in the 2014 contest.

First published by Bright Blue on May 10th, 2014

8 November 2013

Let’s celebrate 20 years of rail privatisation

Being a Guardian-reading Tory can be rather trying. I switched to the Grauniad a decade back for the paper's superlative arts coverage – I'm a photographer by trade – but also because as a Tory the political slant is like having a cold shower every morning. Reading it over toast and coffee means I'm fired up and know what the enemy is thinking. One of my friends (a government whip under Blair) does the exact thing in reverse, and wouldn't start the day until he'd worked his way through the Telegraph.

But every so often there are times when Toynbee et al become a bit much. This week marks the 20th anniversary of railway privatisation, which the the paper commemorated with a hatchet piece, the essence of which is summed up by the tirade that the 'supposed free-marketeers are gleefully happy about state ownership of British assets, as long as it's somebody else's state that's doing it'. This view – and wider yearning for British Rail – pervades our society, including many of those firmly in of the centre-right. I've even heard senior people in our party mumble that perhaps it was a privatisation too far.

And hankering after BR misses the essence of why we as Conservatives believe that the market, privatisation, competition – call it what you will – is the best way to serve the public need. The issue isn't about who owns the company delivering our rail services (or telephones, electricity, etc.) but ensuring that you and I get a better service as a result of companies in competition with each other.

In the case of our rail network this means franchise operators knowing that if they don't perform they will lose their business at the end of their contract. Yes, we know that the Department for Transport has issues with administering this process, but consider this: for the first time since 1948 the railways now return money to the taxpayer, rather than depending on massive subsidies that successive governments have tried to reduce. Profit isn't filthy, as faux revolutionary Russell Brand would have you believe, it's bloody great because Britain's railways are now running efficiently – and competition from operators across Europe has driven this. Besides, British firms like Go Ahead and Stagecoach have operations abroad. The foreign ownership thing goes both ways.

Perhaps the best example of how the markets work is the demise of Britain's locomotive manufacturing industry. We don't have many train builders left over here, and when our wonderful old InterCity125s were recently renovated the new engines were sourced from MTU, a company based in Friedrichshafen that built Zeppelin motors in World War One. Almost enough to make you think that Brunel would be turning in his grave, until you realise that German MTU was acquired by British Rolls-Royce two years ago. What the Guardian would make of that I don't know.

“Ahh, but train tickets are exorbitant!” comes the protest. I did some research into this, and found a piece* by Barry Doe – the leading commentator on UK ticket prices – which points out that despite all the recent coverage of ticket price increases most franchises have either frozen or reduced their season ticket prices in real terms since 1995. And in that time the cost of the single that I buy from Southern when I go down to visit Dad in Sussex has actually fallen – in real terms – by 7%.

Of course with wage stagnation and rising commodity prices travel is still expensive, and some of the franchises have yet to bring costs down (SouthEastern season tickets have seen a 25% price increase) but the situation isn't quite what the headlines would have you believe. Not bad going for a system that many of us are happy to criticise at will.

* Doe's 'Fare Dealer' article appeared in Rail 731 – not available online, sadly

First published by Platform 10 on November 8th, 2013

17 May 2013

Power ballads and funny hats: why Eurovision matters

I love the Eurovision Song Contest. Tragically for me it isn't some sort of ironic interest based on poking fun at the funny hats, weird beards and implausible busts – I actually have the wretched thing in my diary and look forward to it each year, although up until now it's been something of a secret shame.

Carola sings Evighet in Melodifestivalen 2006 (STV)
The Swedes are to blame. In 2006 I lived in Stockholm, and they take Eurovision rather more seriously over there. Melodifestivalen is the country's annual talent show that selects their Eurovision entry, and I was horrified to find my friends, who previously exuded Scandinavian cool, staying in to watch it with unnerving enthusiasm. Carola was the eventual winner: her act was typical schlager, a wonderful Swedish word that sums up all the craziness of Eurovision-esque power ballads, cheesy dance music and lengthy hair billowing with wind machines running at full tilt. Carola's song reached #1 in the domestic charts, was promoted around Europe and finished a very credible fifth in the year Finnish monster rock act Lordi swept away all before them.

But I think the whole Eurovision business neatly sums up some of the failings we have in understanding our European partners. Our entries – recently more towards the nul points end of the spectrum – mean we've become accustomed to sneering at the madness on stage each year, and consoling ourselves with just how good the British music industry really is. The red tops do their best to drum up interest in whatever act the BBC has strong-armed onto a plane, but inevitably singing in Eurovision is seen as a hospital pass, with the contest joining siestas, eating horses, long road trips Eastwards and all the other clichés we like to belittle Europe with. We're just too cool for Eurovision.

So when it comes to the actual contest finals the unfortunate performer we've dispatched invariably doesn't stand a chance against acts who are rather more established, and who see Eurovision as an opportunity to build their profiles as commercial recording artists. I had no idea who Bonnie Tyler is, so I asked my cousin, who described her thus: 'I think she's a... something from the... I'm not entirely sure actually'. The Sun charitably called her a veteran. Either way her Eurovision song won't be gaining much airtime in the bars and clubs around London, whereas the opposite was true for Loreen in Stockholm last year.

We did actually choose someone decent a while ago – Andrew Lloyd Webber wrote a song for Jade Ewen in 2009, took her on tour around the Eurovision nations and ended up delivering our best result in years. Casting my mind back I seem to remember Britain being genuinely excited about the 2009 competition because Jade actually had a chance of winning. Her career progressed as a result, showing that Eurovision is worthwhile if you actually engage in it seriously, rather than dismiss it as a stitch-up by scheming foreigners.

Likewise griping about bloc voting (when all the Nordic countries vote for each other, etc.) betrays another misunderstanding about Europe. In the democratic voting-by-text era people still stubbornly dish out high points for their neighbours – just as we do with Ireland. But this primarily reflects the degree of cultural integration across the regions of Europe, which makes sense when you put it in context with UK voting – many of the German acts feel like something we might actually hear on the radio, whereas Latvian music just sounds weird. As a result Germany and the UK regularly (indeed reliably) vote for each other. Just don't call it an Anglo-German voting pact – it's just another one of Europe's many little cliques built on proximity and interaction.

First published by Egremont on May 17th, 2013

18 April 2013

The choices Thatcher gave us

At the tender age of 34 I'm really a bit too young to remember much of the Margaret Thatcher years. I can certainly recall where I was when she resigned – walking down my primary school corridor, and passing the much feared French teacher's office. It seemed like the world had ended, given that she'd been Prime Minister for all but one of the years I'd lived.

British Telecom
'Ambassador' telephone advertisement
(1984)
Yet I do remember some of the perversities of the country back then, which Thatcher's governments were slowly chipping away at as I grew up. We had state-owned British Telecom's standard issue 'Ambassador' telephone. It was cream in colour, with chocolate buttons and what the advertising described as a 'handy personal directory pad, which allows you to note important numbers'. One day my parents came home from a shopping trip to Tottenham Court Road, where they'd picked up an incredibly futuristic grey and black contraption complete with built in digital answerphone (no tape to wear out) and preset autodial buttons. Ominously, it had a sticker on the bottom with a red triangle telling us we'd get in to trouble for using it.

So this in a sense was my grounding in the basics of politics. A clumsy state enterprise that wasn't responsive to demand. My Mum and Dad ran a business from home, and told me that not only did you have to wait weeks for the BT engineer to turn up, you then had to bribe him if you wanted anything done that wasn't on the work specification – or indeed if you wanted to choose the colour of your phone.

Twenty years later and I’ve just gone before the Parliamentary Assessment Board in Manchester. Before I travelled up for my PAB one of my friends suggested that I figured out what three words summed up Conservatism for me – a good exercise, although the most interesting part comes when you compare your words with someone else as it neatly reveals differences in perspective. Mine were responsibility, honesty and choice – although today's endlessly voguish talk about 'aspiration' made choice seem a little passé.

Yet the genius of Thatcher and her reforming governments was in understanding how choice underpins everything, and her passing this week is a timely reminder that aspiration is built on having options. Thatcher's insistence that Cellnet had a private sector competitor (provided by electronics firm Racal) gave consumers choice, and drove both businesses forward – Racal's offspring Vodafone is now a global leader and turns over £46bn annually. Incidentally Frances Spufford's excellent book Backroom Boys describes the transformation of British industry under Thatcher's watch (including the early days of Vodafone) and is well worth hunting out.

Today the battles of the Thatcher years might not mean much to the under-30s. But when you point to the price plans, handsets and networks they can choose from when buying a mobile, and tell them about the old days when your Government approved phone came in three shades of brown, then you can begin to explain how transformational choice has been to modernising Britain in the past three decades. Some of this would undoubtedly have happened with or without the government's help, but Thatcher knew that people are empowered by having options and making decisions, and her promotion of choice – more than any of the more 'headline' events of her leadership – is the foundation for her legacy.

First published by Platform 10 on April 17th, 2013

12 March 2013

Why £9,000-per-year university tuition fees aren't such a bad thing (and Tony Blair agrees with me)

Children in their last year of school are gearing up for what one contemporary Scottish philosopher calls ‘squeaky bum time’. A-level exams in the summer suddenly don’t seem so far away, and shortly the contents of acceptance and rejection letters from institutions will start being broadcast in Facebook status updates up and down the country.

The deadline for art and design schools is later this month, and last week I had coffee with a student I mentor to look at her portfolio and university application. Her work showed plenty of promise, but as we talked I realised that while she was desperate to do a photography degree, she wasn’t particularly interested in using it as the foundation for a career taking pictures – she just liked the idea of studying photography, and would do something different after her graduation.

She’s by no means alone. We have a large number of students in creative tertiary education, many of whom realise during their studies that enjoying something at A-level (often taken as an alternative to boring ‘academic’ subjects) isn’t enough to sustain them through the long hours of working in the studio at their university. Others quickly find out that that their work simply doesn’t cut the mustard when they enter the saturated graduate marketplace. And – being completely blunt – the tertiary sector’s vast oversupply of creative graduates unable to work in areas where their degree have prepared them for is nothing short of scandalous.

To someone with a rose-tinted view of the whole university experience this probably sounds harsh. University is about growing up, finding one’s feet in the world, etc. Yet the ease in justifying a degree in the creative arts is symptomatic of the distance we have yet to travel in shifting society’s attitudes towards tertiary education.

The wretched ‘50 per cent of school leavers going to university’ aspiration was a misplaced and profoundly damaging New Labour ploy to seduce parents. It was also politically very smart: ‘thanks to the government my child is the first in our family to have a university education’. The policy flooded the workforce with graduates, and sent a clear signal to students that choosing not to do degrees made them second best.

At the drop of a hat sixth formers saw areas like photography that really should only be one or two years in duration as the gateway to the newly hallowed university education – albeit in a technical subject that doesn’t give them the transferrable skills and intellectual rigour that employers associate with degrees in subjects like history or geography. Private schools also need to take some of the blame: it’d be a rare headmaster who tells parents that their child isn’t university material having taken £150,000 in fees over the past five years. Better a degree in photography, music journalism, etc, than no degree at all, or so their logic flows.

The danger is that students are supposedly now paying for the bulk of their education. Fundamentally this is a good thing: America’s dominance of the top 100 universities is plainly and inescapably due to their system of fees – not my analysis, but that of Tony Blair in his autobiography, who (rightly) points out that when it comes to recruiting academic staff “those who paid top dollar got the best”.

Tuition fees also address the small matter of successive governments failing to fund universities properly. And as a Head of Sixth Form friend of mine pointed out, “if you’re not intelligent enough to realise that £9,000 a year to go to a top Russell Group university is a bargain, then you really shouldn’t be applying to those places in the first place”.

The scrum of blue chip firms recruiting on Britain’s top campuses hammers home the value of forking out for the best education the UK can offer, and the new fee levels will help ensure that graduates from UCL, Cambridge, etc, can expect their qualifications to stack up globally (with salaries to match) and help ensure our universities continue to churn out world leading research.

Incidentally, as someone who mentors students in two of South London’s most deprived schools, I was really pleased to hear from the teachers there that the new fees structure and bursary support is more favourable for those from less affluent backgrounds than the previous government’s scheme – which is exactly as it should be. Nevertheless I remain to be convinced that many of the wide-eyed UCAS applicants for photography and music journalism degrees will actually find that their three years of undergraduate study has transformed their employment prospects.

More importantly, will their studies enable them to repay much of the £18-27k in tuition fees that they’ve taken on, full of enthusiasm for whatever creative A-level subject they dabbled in at school? Or will they find they’ve been sold a pup by institutions who are desperate to prop up their student rolls with courses of dubious value? It’s interesting to hear Pam Tatlow of the Million+ think-tank (representing many former polytechnics) describe this year’s small increase in university applications as a “recovery”, whereas the market behaviour from this year’s students seems to indicate that for some of the institutions Million+ represents the decrease in rolls of 50-60% could well be terminal. And while this plays out the Treasury’s exposure to the student debt it underwrites grows and grows – after all, the government pays for your education until you’re actually in a position to reimburse it.

So where does this leave my enthusiastic photography student? Higher student fees are here to stay – Mr Blair himself saying that “once introduced as a concept, there [is] no looking back”.

For some disciplines this must surely spell trouble for the idea of three year degrees. The higher end providers of vocational courses will flourish, but institutions without the cachet of the Slade and LCC may well have to rethink how they deliver education to increasingly savvy consumers. Photography, journalism, graphic design, etc. are hardly lucrative careers, so the American concept of shorter ‘associate’ degrees for some vocational and creative subjects seems very sensible: students avoid the £10-15k involved with a third year of study, and employers provide the final polish in the initial stages of paid employment.

My student wants to experience tertiary study, so understandably a single year course doesn’t appeal. I did a two-year photography diploma in New Zealand, and by the end of it I was desperate to finish and get stuck into winning clients and getting proper commissions, as well as avoid an expensive third year – the money saved being more than enough to buy a decent studio setup.

Why is it then that our creative universities stubbornly persist with courses that seem aimed at lining their own pockets and propping up a ill-conceived system? Sure, politicians and society at large need to take some responsibility for fostering the often dubious allure of ‘going to uni’, but there’s a horrible irony in institutions aimed at nurturing creativity being so painfully regimented and unoriginal in what they offer today’s young talent – and cheerfully milking them dry at the same time.

First published by Egremont on March 8th, 2013