Showing posts with label privatisation. Show all posts
Showing posts with label privatisation. Show all posts

20 July 2015

#ToriesForLiz – a letter to Labour's party members and registered supporters

Life since our epic victory on May 8th has been a bit like recovering from Christmas lunch – having gorged myself on christmas pudding, goose (of course) and canvassing I've been struggling to find the enthusiasm for things like charades, EVEL and reform of the Human Rights Act. But I was jolted out of the obligatory post-election / Queen’s Speech snooze when my local MP Sadiq Khan livened things up by nominating Jeremy Corbyn for your leadership contest.
Corbyn's opposition to PFI and the Iraq War always struck me as principled and decent, but politically he makes Ed Miliband look like pure box-office. So when the midday deadline for nominations passed tribalism duly kicked in: I downloaded my 'Corbyn for Leader' twibbon (apparently that's how you lefties do things) and began to tweet excitedly about Brother Jeremy. Although being really honest I can't say I had any intention of parting with the £3 needed to become a registered supporter of the Labour Party – #JezWeCan and your open primary didn't seem like my business.

And your leadership options aren't exactly inspiring. Andy Burnham was in charge of the nation's purse strings when the public finances started to run out of control and – uncomfortably for him – he failed to act over the Mid-Staffs abuse scandal when he was Secretary of State for Health. His schtick is scaremongering about Tory privatisation of the NHS. Good luck with that: we are pro-market because we believe that is the way to drive up care standards, which is perhaps why Burnham himself oversaw the privatisation of Hinchinbrooke Hospital.

Yvette, on the other hand, is too.... bleugh. She's been at the frontline of British politics for so long I suspect she's running because there's a weight of incumbency as a competent shadow frontbencher, with the Balls / Cooper leadership dilemma conveniently resolved courtesy of Lynton Crosby. There's an unthinking machine politics about Yvette's leadership bid that just seems so dull. Having spent months pounding the streets and towerblocks of Battersea and Tooting I'm pretty confident neither she nor Andy will be PM come 2020.

So Liz Kendall strikes me as the only candidate who can steer Labour back in the direction of sanity. Yet the rank and file of the Labour movement seems hell-bent on monstering a woman who believes we need to invest in our defences at a time when ISIL and Putin are turning up the heat, and who acknowledges that the last Labour government left a welfare system that was unsustainable – views (may I diplomatically add) that were endorsed by the electorate a couple of months ago. Tony Blair is your only leader to have won two full terms in office, yet Liz is made to wear the term 'Blairite' like a badge of shame.

To us Tories this flirtation with the political wilderness is utter madness. If you want to feel radical and unelectable book Owen Jones for a fundraiser – or join the Greens. Liz (currently tanking at 11/1 with the bookies) is the one we think will give us the biggest run for our money. She is a decent woman and has been honest about the importance of the markets in improving our public services. Kendall will bring a voice to opposition that Britain needs, and my decision to cough up three quid and vote was driven by a desire for healthy debate across the political divide at a time when a worrying number of your movement seem more comfortable ranting about the bedroom tax and wishing Charlotte Church was running for leader.

Liz probably won't win, but your AV ballot means I get to express a second preference, which will go to Jeremy Corbyn. Choosing anyone other than Kendall means the Labour party really does need euthanising – and we Tories are a compassionate lot these days. Far better to rip off the plaster with one quick movement than spend years peeling it inch by inch. And don't blame me – just have a good look at Sadiq, who wanted your lunatic element to have a voice (no voice for Tristram Hunt's aspirational John Lewis set, mind). With judgement like that it's safe to say I won't be giving him my vote for the London Mayoralty.

Of course there is another option: the Tories are a broad church. We 'invented' modern state education in the way you 'invented' the NHS, not all of us eat babies for breakfast, and we don't talk about Europe – much. And as a bonus, there's almost certainly a literature delivery round waiting for you at your local Conservative Association!

First published by Labour Uncut on July 20th, 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 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

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