Category Archives: Corporate political nexus

Outsourcing 8: apprenticeship training 2017-2020

In 2018, the Times (paywall) reported the verdict of MP Meg Hillier, chair of the Public Accounts Committee: “The apprenticeship levy is not working. It was meant to incentivise large employers to invest more in apprenticeships by requiring them to pay into a central fund from which they can claim back some or all of their training costs.

Instead it has led employers to recoup the cost of existing in-house training schemes by relabelling them as apprenticeships. 

She noted that more companies are setting themselves up as training providers and that Ofsted says that it will struggle to keep tabs on these. The following year her report pointed out that too many apprentices were still being trained by sub-standard providers.

Around a third of apprentices covered by Ofsted inspections in 2017/18 were being trained by providers rated as ‘inadequate’ or ‘requires improvement’. The poor quality of some contributed to a situation where over 30% of apprentices fail to complete their apprenticeship successfully each year.

A letter to the Times editor added: “The Learndirect scandal serves as a stark case: an organisation was allowed to take on more and more learners (reaching 75,000) when warning signs of inadequate training and poor financial management were already being issued”.

The Financial Times reminded readers that Learndirect was privatised and sold to the private equity arm of Lloyds Bank in 2011 but is still reliant on government funding. When the Public Accounts Committee questioned Learndirect and Ofsted, Ofsted revealed the findings of Learndirect’s “inadequate” performance and the ‘legal shenanigans’ used to prevent earlier revelations. The findings included:

The National Audit office’s 2019 report focussed on the cost of apprenticeships and the low rate of uptake. In its first full year of operation, the apprenticeship levy raised £2.7 billion and this is expected to rise to £3.4 billion by 2023-24. However, there have been repeated warnings in recent months that the funding pot generated by the levy is about to run out

Earlier this month the Financial Times reported on an Education and Skills (EDSK) report, based on official data, which has investigated what is happening with the apprenticeship levy and the apprenticeship system in England more broadly. 

It found that 50% of apprenticeships funded by the levy are ‘fake’, citing figures which relate closely to those reported by the Public Accounts Committee, recorded in the FT box above:

  • Some £1.2bn of the £2.4bn money raised since the levy was introduced in April 2017 had been spent on “fake” apprenticeships, rebadged MBA courses and low-skilled jobs training,
  • £550m of levy funding had been spent on management training courses for experienced employees, which previously would have been funded from professional development budgets.
  • Highly qualified academics, many of whom already have PhDs, had been relabelled as apprentices in order to put them through levy-funded professional development courses.
  • And £235m had been used to teach people in low-skilled jobs, including working at a shop checkout or serving in a bar, often requiring minimal training, which pay low wages and do not meet any established definition of an apprentice.

Last July Boris Johnson said that, while he will always “defend and extol the advantages of having a degree, there are far too many young people who leave university with huge debts, and no clear sense of how their academic qualification has helped their career.” He has pledged to “elevate practical and technical qualifications” to “recognise their immense value to society and to the individual” and to raise funding for apprenticeships.

As – regrettably – Learndirect has re-emerged in the apprenticeship sector under a new name: Learndirect Apprenticeships Ltd., EDSK reflects that government pays private providers taxpayers’ money to deliver public services but can fail to monitor the results or truly penalise those that do not deliver. It recommends the Department for Education to tighten rules to stop financing of rebadged MBAs and low-skilled training and introduce a new definition of apprenticeship, benchmarked against the world’s best technical education systems.

 

 

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Baron McNicol in the FT: ‘Corbynism must end with Corbyn’

On Saturday, Iain McNicol’s article ‘Corbynism must end with Corbyn’ was published in the Financial Times

As a post Corbyn entrant to the Labour Party I had only dimly heard of McNicol, so read around and discovered that he had been general secretary of the Labour party from 2011 to 2018 and now sits in the House of Lords. Then came a disturbing account of his wrecking tactics in his Wikipedia entry, condensed in The Jacobin by Daniel Finn:

“The party leadership has put a lot of effort into revamping Labour’s disciplinary processes so that real cases of antisemitism can be dealt with more quickly. Much of this work has been done since Jennie Formby took over as Labour’s general secretary in April 2018, replacing Iain McNicol, who was bitterly hostile to Corbyn. Some of the party officials who departed with McNicol had been slowing down the handling of cases, whether through incompetence or malice, knowing that Corbyn’s team would get the blame from the British media”.

No physiognomist needed

Finn described MacNicol as being one of the influential political players from Labour’s right-wing, anti-Corbyn faction which has a negligible organisational base in the party and unions but is closely linked to supportive media outlets. This faction is composed of Blairites and some MPs from the 2010 intake who believed themselves to be contenders for the party leadership once the Corbyn project collapsed.

MacNicol’s theme: “Clause One of the Labour party rule book states that the party’s purpose is to ‘promote the election of Labour party representatives at all levels of the democratic process’. It does not state that its function is to be a radical protest party. The fight is now on for Labour’s soul and the future”.

After taking credit for 2017’s ‘professionally-run campaign with strategic goals, a cutting edge social media campaign’ he refers to ‘a freshness that appealed to a broad coalition, including many hard-to-reach voters’.

This freshness was actually due to the surprise appearance of an honest and caring politician, the first in many decades.

Corbyn’s spectacular insurgent campaigns stand as vivid demonstrations that, as he said upon taking leadership of the Labour Party in September 2015, “things can, and they will, change.” Corbyn’s ease on the campaign trail and assured performances on TV transformed perceptions. He became Labour’s great asset (Alex Nunns)

MacNicol continued: “What did Labour offer? Everything to everyone and that was the problem . . . Corbynism has been an abject failure. We need a strong leader to reignite the party and connect with voters”.

Quickly disposing of Rebecca Long-Bailey: “If elected, she would kill any chance of Labour improving its electoral prospects” he moved on to focus on Keir Starmer, attracting the bulk of the support from MPs, the backing of Unison, the largest trade union and appointing a campaign team drawn from both left and right of the party

Lisa Nandy and Jess Phillips – ‘capable of driving the transition Labour needs- – are likely to gain the necessary support to have their names on the ballot paper.

He ends, “A renewed Labour party, with a strong leader, could win the 123 seats needed to secure a majority . . . on April 4 take steps honour the promise of Clause One and move back to bidding for power or remain a party of protest.

So must the party resurrect New Labour? Will Corbynism and the bid for truth, peace and justice, end with Corbyn?

 

 

 

 

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‘Break the grip of the hard left’ (FT) or ‘Resist and Rebuild’, (Monbiot)

The editorial board says that the author of Labour’s defeat, above all, is Mr Corbyn:

ft editorial 

Resist and Rebuild is George Monbiot’s challenging title for his latest article – replaced as usual, with a blander headline, by the Guardian editor

He sees a future, darker, arguably, than at any point since the Second World War. His verdict:

“This government has no vision for the country, only a vision for the oligarchs to whom it is bound, onshore and offshore . . . We should seek, wherever possible, to put loyalty to party and faction aside, and work on common resolutions to a crisis afflicting everyone who wants a kinder, fairer, greener nation.

“All the progressive manifestos I’ve read – Labour, Green, SNP, LibDem, Plaid – contain some excellent proposals. Let’s extract the best of them, and ideas from many other sources, and build an alliance around them. There will be differences, of course. But there will also be positions that almost everyone who believes in justice can accept”.

Monbiot believes that we need to knit these proposals into a powerful new narrative – the vehicle for all political transformations.

Ignorance makes us vulnerable to every charlatan who stands for election, and every lie they amplify through the billionaire press and on social media

Knowledge is the most powerful tool in politics.

  • We must expose every lie, every trick this government will play, using social media as effectively as possible.
  • We must use every available tool to investigate its financial relationships, interests and strategies.
  • We should use the courts to sue and prosecute malfeasance whenever we can.

Create, to the greatest extent possible, a resistance economy with local cooperative networks of mutual support, that circulate social and material wealth within the community (Ed: see Relocalising Britain)

The work of Participatory City, with the Barking and Dagenham Council, shows us one way of doing this through volunteering which provides the most powerful known defence against loneliness and alienation, helps to support the people this government will abandon and can defend and rebuild the living world.

We will throw everything we have into defending our public services – especially the NHS – because the long-standing strategy of governments like this is to degrade these services until we become exasperated with them, whereupon, lacking public support, they can be broken up and privatised. Don’t fall for it. Defend the overworked heroes who keep them afloat.

He ends “No one person should attempt all these things. . . We will divide up the tasks, working together, with mutual support through the darkest of times. Love and courage to you all”.

 

 

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Outsourcing 7: bring privatised services and PFI deals back into public ownership

As Paul Halas writes (Western Daily Press, 7 December 2019, p. 30):

“Over the past few decades privatisations have included Royal Mail, British Gas, electricity, water and sewage treatment, the 999 calls service, much of the ambulance service, the NHS appointments service, British Steel, large parts of the education service, the Coal Board (as was), the probation service, many prisons and detention centres, large chunks of the care services, British Airways, British Rail… ad infinitum”).

Martin Rudland draws attention to the ‘we own it’ website which focusses on privatisation of public services which wastes billions each year on shareholder dividends and high borrowing costs, giving links to research into costs in several sectors including water, energy, transport, broadband, Royal Mail and NHS.

Transnational Engie is on the list of Luton and Dunstable University Hospital’s suppliers of domestic, catering and cleaning services. Unison and GMB are calling for these services to be brought back in-house once Engie’s contract ends next year.

UNISON, the union representing workers at Luton & Dunstable Hospital, points out that staff who were transferred from the NHS in 2015 are being paid NHS rates of £9.02 an hour but anyone who started since is paid the legal minimum of £8.21 an hour.

New starters are paid at least £1,400 less than colleagues who were at the hospital before cleaning services were sold off. Engie employees have also told UNISON that they are being denied leave and being made to take the blame when the contractor is pulled up by the Trust for any shortcomings in service.

UNISON’s Eastern regional organiser Winston Dorsett said, “Engie has confused and demoralised its staff further with a third set of pay and conditions brought in last year to squeeze a bit more cash out of the taxpayer. This firm is making its profits off the backs of some of the lowest-paid workers in our NHS”.

GMB regional organiser Hilda Tavolara agrees that the workers “deserve to be treated fairly by their employer” and points out that last year, housekeepers’ working hours and wages were cut, yet they were still expected to do the same amount of work. This has had a knock-on effect on the patients, their families and visitors.

Hospital chiefs are offering Engie a new 10-year contract to provide the services, proposing to outsource a number or employees currently working for the NHS but UNISON is calling on the Trust not to renew Engie’s contract next year and bring cleaning, catering and housekeeping back in-house.

This week an IPPR study revealed the cost of private finance initiatives (PFI) contracts in the NHS.

These contracts brought £13 billion of initial investment capital into the health system but by the time they have ended the NHS will have spent £80 billion on them.

This is money which could have been spent on doctors’ and nurses’ salaries, on improving treatments, or on making sure young mental health inpatients don’t have to stay in hospitals hundreds of miles away from their family and friends.

The IPPR report reveals that £55 billion of this debt is still outstanding – representing a huge burden on tight NHS resources if the government does not take action. It recommends that bad deals be brought back into public ownership.

After wondering whether what’s left of the NHS is really going to remain in the public domain under the Tories, Paul Halas adds: “What they (private companies) all have in common is poorer service, higher prices, worse wages and conditions for employees, and a haemorrhaging of money to highly paid executives and shareholders, many of them based overseas and avoiding tax in this country”, ending:

“The Tories’ long-term goal has always been to shrink the public sector to the size of a walnut and until the NHS, the last of the public service dominoes, is toppled it’ll remain a thorn in their ideological flesh”. 

 

 

 

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Will turkeys vote for austerity, exploitation, climate disaster and profits for the few?

 

 

 

 

 

 

 

 

 

 

 

The revolving door between government & big business

Yesterday’s headlines review of ONS report: 2008-2019, richest 10% enjoy biggest gains in household wealth

 

 

 

 

 

 

THEIR CHOICE

 

 

 

 

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Former BBC Political Editor Harangues Britain’s Right-wing Media Bias

It’s fashionable for people on the progressive left to call out and highlight the anti-left and anti-Corbyn bias of the BBC, but this claim needs some careful unpacking.

Academic research (e.g. LSE: Journalistic Representations of Jeremy Corbyn in the British Press: From Watchdog to Attackdog) certainly seems to support this view; but assuming it to be true for a moment, it by no means follows that all, or even most, journalists working for the BBC are themselves politically right-wing. 

Parallels can be drawn here with the right-wing press. I’ve been reliably informed by a former Daily Telegraph journalist, for example, that at that newspaper, many of the journalists working there are well left of centre.

At the institutional level however, everyone knows what’s required by the paper’s owners and so a culture of right-wing and right-oriented commentary is created, which becomes an accepted norm to which all journalists employed by that title conform. In such organisations, moreover, the management are likely to be right-wing in orientation.

Something similar to this seems to be happening at the BBC, as political commentator Owen Jones pointed out at length on Radio 5 Live last Saturday evening (Saturday 30 November).

So perhaps we shouldn’t be too surprised to see a former very senior BBC journalist and editor ‘coming out’ on the political left. I remember Nick Jones (right) very well from the miners’ strike in the early 1980s when he was chief political editor at the BBC, and when he was clearly doing his best as the time to be as even-handed and neutral as possible. Jones left the BBC in 2002 (aged 60), and I’ve heard nothing of him since. So I was mildly amazed to read in a recent issue of the Morning Star a feature article by him on media bias. Titled ‘Boris Johnson’s shock troops in the commentariat’ we read about how, ‘when the PM runs into trouble, he’s not short of obliging media pundits to rush to his rescue and deliver a hatchet job on Corbyn’.

Jones evocatively writes of what he calls ‘attack journalism’, their ‘character assassination of Jeremy Corbyn’, and their ‘conjuring up yet another hatchet job on Corbyn to help bolster the brilliance of Johnson’.

Listing a number of obnoxious headlines from an array of Tory propaganda comics, Jones then points out the sobering fact that Conservative-supporting newspapers account for 80% of UK newspaper sales.

But it’s far worse than even this, as the likes of the BBC pick up on and report the right-wing editorial lines of these papers, ‘feeding through to the commentary on television and radio programmes’. And the right-wing press commentariat also ‘command a far higher proportion of broadcast interviews and invitations to newspapers reviews on radio and television’, with press headlines commonly treated as news.

Jones concludes his article with a chilling observation: ‘Media coverage in 2017 was the vilest of any general election of my 60 years as a reporter’.

I fear 2019 might be even worse.’ From what I’ve seen to date, I think his worst fears have already come to pass, with the Cummings-driven Tory Dirty Tricks Department leaving all previous Tory attempts to propagandise the electorate trailing in his wake.

When a widely respected journalist of Nick Jones’s seniority and professional stature speaks so scathingly about the flagrant bias of the right-wing press, we really have to take it seriously. But just what we can do to neutralise the propaganda impact of this outrage to democracy is something that the left urgently needs to address – and preferably well before 12 December 2019.

Guest-blogged by Richard House Ph.D., former senior university lecturer in psychology, psychotherapy and early childhood studies, and now a full-time Labour Party and environmental campaigner-activist.

 

 

 

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Are Boris and Donald playing ‘The Great Game’?

A Sunday Times allegation that nine wealthy Russians have donated to Britain’s Conservative Party is leading some to suspect that disturbing evidence is being withheld at this time in order to safeguard its election prospects. Two expatriate oligarchs named, former allies of President Putin, are now British citizens. As David Slinger asks, (Gloucester Citizen, 2811.19) “Do we have a democratic right to see the reports?”

Would publication of the parliamentary report – which has passed security checks – shine a spotlight on the bankrolling of their party by disaffected millionaire Russian oligarchs?

Prime Minister Boris Johnson has – to date – refused to publish the findings – thought to present evidence of covert Russian attempts to influence the outcome of 
the referendum and 2017 general election gathered by UK intelligence.

David Fromkin (Foreign Affairs) once wrote that the history of Britain’s participation in ‘The Great Game’ (see Kipling) ‘gains interest and possible significance from the American decision in our own time to contest Russian expansion on much the same battlefield’. Despite a temporary parliamentary setback pictured above, is the ‘Game’ afoot and will America – as usual – expect British diplomatic, intelligence and military support when required?

The US government is understandably apprehensive as Russia is increasing its influence in the Middle East and has also been co-operating with China – the latest move being a partnership in a $55 billion pipeline which the WSJ sees as ‘challenging the economic and strategic clout of the U.S’.

Work on the Power of Siberia pipeline project

Richard House wonders why opposition parties haven’t made the report a major general election issue, as it is ‘potential dynamite for the whole Brexit cause’.

Foreign Policy mentions ‘pervasive reports—never quite conclusively denied by the Foreign Office—that during Johnson’s time as foreign secretary, direct oversight of MI6, the foreign intelligence service, was quietly moved out of his portfolio because of his rather startling ‘Russian connections

If the report does cast significant doubt on the narrow referendum result to leave, Richard House adds, the whole legitimacy of Brexit would be thrown into doubt and the Tory Party would be in total meltdown.

 

 

 

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Labour guarantee: a guard on every train will attend to passengers and help the frail or disabled to board safely

If a Labour government is elected, years of struggle against the privatised railways’ attempts to remove guards and have driver only operated (DOO) trains will come to an end.

It is alleged that government has made the removal of guards a condition of private operators’ franchises and has also included a clause in them stating that taxpayers will underwrite any losses the operators incur by provoking strike action.

In 2016, the BBC’s Laura Kuenssberg derided this cause as making a ‘fuss’ and described the protesting unions as indulging in a power play; She explained the motivation for removing the guards: “One former senior minister tells me that “successive secretaries of state” in charge at Transport have wanted to “get rid of guards on trains”. The ambition is to bring down the cost of rail travel for the tax payer and the train passenger”. She forgot to mention

  • the companies’ desire to avoid paying for these guards, swelling profits and payments to shareholders,
  • incidents where guards have been needed to cope with disruptive passengers; as an RMT report said: “Only a fool would suggest that drivers can drive a train while sorting out drunken and/or antisocial behaviour in the carriages behind them”
  • or ‘lifechanging’ incidents such as this: ITV reported that at West Wickham station south London, in April 2015, a passenger was dragged along the platform at West Wickham station, south London, when the 11am Southeastern service from London Cannon Street to Hayes (Kent) – driver-only operated – while her backpack strap was trapped in the doors of the train. As the train moved off, she fell onto the platform and then through the gap between the platform and train, suffering life-changing injuries.

As RAIL concludes: there remain (even in the eyes of the most ardent DOO supporters) security risks for the train’s passengers without another member of staff present, be they called guards, conductors or train managers.

A list of incidents given in a 2016 government dossier ended: When there is an emergency the guard can take charge especially if the train driver is incapacitated”. But this link, cited in 2017, no longer leads to the dossier.

Racheal Maskell, Labour’s Shadow Rail Minister, said:

“The railway should liberate people and enable everyone to play their full role in our society and economy, but the Conservative Party’s expansion of DOO has knowingly degraded the rights of older and disabled passengers in the face of protests from passenger and disabled people’s groups. It is remarkable that the Government and private train companies have pursued this discriminatory policy even when it provoked fierce industrial disputes resulting in significant strike action.

“Labour’s publicly owned railway will be for everyone, not just the able-bodied, which is why we will enable staff to deliver a safe and accessible railway for all.”

Earlier this month, West Midlands Trains workers staged a weekend stoppage in their continuing campaign against the removal of safety critical guards from trains. An RMT spokesman said:

“The safety and accessibility of the travelling public is this trade union’s priority and should take priority over the profits of the train operator and we believe that this is an important election issue for the people of the West Midlands. “We will not allow the drive for profit to override the core issue of safe and accessible services for all on West Midlands Trains and we stand fi rm on that very basic principle. We will never compromise on the issues of passenger safety and accessibility.”

The union remains available for talks with West Midlands Trains, which is a subsidiary of Dutch state-owned rail operator Abellio.

Will common humanity prevail: the record indicated that it will not unless a Labour government is elected.

Further reading:

2015: The appalling risks which can arise on a DOO train were outlined convincingly here: http://www.railmagazine.com/trains/current-trains/the-pros-and-cons-of-driver-only-operation/page/2

2017: https://www.railway-technology.com/features/featuredriver-only-trains-and-safety-whats-the-big-issue-5769231/

2018: https://www.rmt.org.uk/news/govt-advisors-warned-doo-trains-are-toxic-for-disabled/

And many issues of Private Eye over the last four years have covered the issue and several DOO related accidents in detail .

 

 

 

 

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Labour has pledged to end deregulation of housing construction and ‘human warehousing’

 

Deregulation is posing problems in many sectors. Recently it was announced that the House of Commons Business, Energy and Industrial Strategy Committee is to examine Thomas Cook’s ongoing corporate governance, accounting, auditing and regulatory failures, ‘while the gravy train for directors continued’ (Prem Sikka, September).

Advocates of deregulation – the reduction or elimination of government power (state rules) – say that it removes unnecessary bureaucracy and barriers to competition.

Prem Sikka (Professor of Accounting at University of Sheffield) now turns to the effect of deregulation on social housing. He focusses on the controversial ‘permitted development’ (PDR) system for the delivery of new homes which Labour has pledged to end – a decision commended by the Town and Country Planning Association. Reports last year highlighted the poor quality homes coming through the permitted development system and a get-out clause that exempts schemes from providing vital social and affordable housing.

Human warehousing

The permitted development system has led to the delivery of homes as small as 13 square metressmaller than the average living room. A BBC report about an office-to-residential permitted development conversion carried out by Caridon Property is quoted by Shelter. It has been used as temporary accommodation since 2018 and the homeless families with children crammed into tiny ‘studio flats’ have to ‘eat, drink and sleep in their beds’.

London Assembly study also noted that many PD homes are smaller than the minimum space standards and exacerbate the already huge issue of overcrowding – and by avoiding the planning system, developers are no longer obliged to contribute to the provision of affordable housing.

Newbury House in Ilford offers flats that apparently measure as little as 3.6 metres by 3.6 metres (12ft x 12ft), with residents packed in “like sardines”, a busy six-lane highway just yards away, broken glass and rubbish strewn all around outside.

The Developer, which informs and connects professionals working in urban development and design, adds more detail and is campaigning for these potentially dangerous conversions to be stopped.

A study by the Royal Institute of Chartered Surveyors which examined the quality of PD in parts of Camden, Croydon, Leeds, Leicester and Reading, concluded that PD has allowed extremely poor-quality housing to be developed and PD residential quality was significantly worse than schemes which required planning permission – particularly in office-to-residential conversions. Of 568 buildings studied, another report found an inconsistency in the quality of developments, with only 30% of units delivered through permitted development meeting national space standards.

And Conservative MP for Harlow Robert Halfon (left) agrees with Sikka’s October verdict: ‘Government deregulation of housing construction is delivering social cleansing and the slums of the future’.

In 2013 – following pressure from ‘profit hungry’ property developers – the Conservative and Liberal Democrat coalition government deregulated and disempowered local councils, passing legislation enabling developers to convert office blocks, agricultural buildings and warehouses into residential properties without full planning permission.

Richer councils are sending people to poorer areas already facing acute economic problems as part of a social cleansing process. Families with children, senior citizens, low-paid, the unemployed, people with special needs and others, faced with the choice of long waiting lists for housing, temporary accommodation, dilapidated housing and high rents by private landlords, have been persuaded to relocate to another area.

As part of a recent research project, Sikka met council leaders from many of these poorer areas, struggling to cope with the problems caused by deregulation and the loss of central government funding to local councils since 2010 cut by 26% in real terms. He writes:

“The class nature of permitted developments (PD) is evident as there are more PDs in Harrow and Hounslow compared to wealthy Kensington and Chelsea. They have been a boon for housing developers. The chief executives of this country’s ten biggest developers received a combined £63.6m last year for building slums, called by some, ‘human warehousing’ “.

Poorer areas already struggling to cope with acute economic problems have to find new jobs, schools, transport, family doctors and hospitals, without prior planning or resources, while richer areas with lower numbers of people on benefits, lower unemployment rates and less pressure on local schools, hospitals and social infrastructure, embark on the process of gentrification.

  

Professor Sikka’s article may be read here.

 

 

 

 

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