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A final nail in the coffin of successive governments’ love affair with PFI?

Keep Our NHS Public Birmingham (KONP) says, “It looks like we’ve won our campaign for a publicly-funded (non-PFI) Midland  Metropolitan Hospital in Smethwick/West Birmingham!”

The construction of the Midland Metropolitan Hospital in Smethwick collapsed after Carillion crashed spectacularly in Jan 2018 leaving the hospital half built. Then the bankers behind the ‘private finance initiative’ pulled the plug on the deal.

KONP Birmingham immediately organised a protest outside the hospital site demanding that the Treasury, health ministers and the Government should fully fund the hospital and run it properly under government and NHS control! Supporters included Birmingham TUC (BTUC), Unite the Union West Midlands, Unite the Community Birmingham, West Midlands Pensioners Convention and Birmingham Against the Cuts.

A month later, the Sandwell and West Birmingham Hospitals Trust Board voted to tell the Government that the only viable option for the completion was direct government funding, a full vindication of the KONP Birmingham campaign argument.

The Government and Hospital Trust has now reached an agreement to finish construction work with the Government providing funding for the remainder of the building work at Midland Metropolitan Hospital – which will see the new hospital built by 2022.

Birmingham Against The Cuts (BATC) says: “We believe that the Midland Met fiasco is a final nail in the coffin of successive governments’ love affair with PFI /2”

BATC gives a very cautious welcome for a publicly funded Midland Met Hospital in Smethwick/West B’ham (no PFI!) and expresses its  continuing concerns:

Firstly, there is a delay in starting completion until early summer 2019, partly because the half built hospital was rotting away without any protection for 6 months and an additional £20m worth of work will have to be done from this September.

Additionally, the Hospital’s Trust Board Chief Executive has been dropping in phrases to his announcements such as “making cost improvement programmes above national norms”, “limited reconfigurations”, etc, which reflect the concern in Dr John Lister’s 2016 review (right) of the privately financed hospital published by KONPB and BTUC when the Midland Met was first mooted.

Keep Our NHS Public Birmingham Secretariat will continue campaigning to defend the NHS and BATC will share news of government cuts, the implications and alternatives.

 

 

 

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Time for change: junk the Anglo-Saxon model* in 2018

The FT reports that senior executives at several of the largest US banks have privately told the Trump administration they feared the prospect of a Labour victory if Britain were forced into new elections.

It then referred to a report by analysts at Morgan Stanley arguing that a Corbyn government would mark the “most significant political shift in the UK” since Margaret Thatcher’s election and may represent a “bigger risk than Brexit” to the British economy. It predicted snap elections next year, arguing that the prospect of a return to the polls “is much more scary from an equity perspective than Brexit”.

Jeremy Corbyn gave ‘a clear response’ to Morgan Stanley in a video (left) published on social media reflecting anti-Wall Street rhetoric from some mainstream politicians in the US and Europe, saying: “These are the same speculators and gamblers who crashed our economy in 2008 . . . could anyone refute the headline claim that bankers are indeed glorified gamblers playing with the fate of our nation?”

He warned global banks that operate out of the City of London that he would indeed be a “threat” to their business if he became prime minister.

He singled out Morgan Stanley, the US investment bank, for particular criticism, arguing that James Gorman, its chief executive, was paying himself a salary of millions of pounds as ordinary British workers are “finding it harder to get by”.

Corbyn blamed the “greed” of the big banks and said the financial crisis they caused had led to a “crisis” in the public services: “because the Tories used the aftermath of the financial crisis to push through unnecessary and deeply damaging austerity”.

The FT points out that donors linked to Morgan Stanley had given £350,000 to the Tory party since 2006 and Philip Hammond, the chancellor, had met the bank four times, most recently in April 2017. The bank also had strong ties to New Labour: “Alistair Darling, a Labour chancellor until 2010, has served on the bank’s board since 2015. Jeremy Heywood, head of Britain’s civil service, was a managing director at Morgan Stanley, including as co-head of UK investment banking, before returning to public service in 2007”.

A step forward?

In a December article the FT pointed out that the UK lacks the kind of community banks or Sparkassen that are the bedrock of small business lending in many other countries adding: “When Labour’s John McDonnell, the shadow chancellor, calls for a network of regional banks, he is calling attention to a real issue”. And an FT reader commented, “The single most important ethos change required is this: publish everyone’s tax returns”:

  • In Norway, you can walk into your local library or central council office and see how much tax your boss paid, how much tax your councillor paid, how much tax your politician paid.
  • This means major tax avoidance, complex schemes, major offshoring, etc, is almost impossible, because it combines morality and social morals with ethics and taxation.
  • We need to minimise this offshoring and tax avoidance; but the people in control of the information media flow, plus the politicians, rely on exactly these methods to increase their cash reserves.

But first give hope to many by electing a truly social democratic party.

Is the rainbow suggesting a new party logo?

*the Anglo-Saxon model

 

 

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Birmingham Council adopts the government’s austerity agenda: asking the low paid to accept even lower wages

In July, Birmingham City Council reneged on an ACAS-mediated, cabinet-approved agreement between the Unite union and Birmingham’s talented Council Leader, John Clancy, which was to end the seven-week refuse collection dispute.

The well-paid BCC chief executive (right) was seeking to downgrade 106 Grade 3 jobs to a Grade 2, which meant that workers would lose £3,500-5,000 from their already low salaries of around £20,000.

And when BCC reneged on the Unite/Clancy deal, they also issued redundancy notices to the Grade 3 workers. These were later banned in the High Court when Mr Justice Fraser spoke at length about the “extraordinary” and “astonishing” state of affairs at Birmingham City Council with “chaos” between senior personnel. Read more about his reflections here.

Council leader Ian Ward (left) told a BBC reporter: “The cost of the (three month) dispute, yes that’s cost in excess of £6m”.

This ‘new’ version of the original deal (details here), described by union insiders as a ‘total climbdown’, was agreed at a special meeting of the BCC cabinet on Friday.

 ITV reports that yesterday Birmingham bin workers voted to accept the council deal.

So a seven week dispute was allowed to go on for three months, regardless of health and safety implications, losing £6m of ratepayers’ money – and the wrong head rolled.

From ‘Our Birmingham‘,  under another title.

 

 

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Jeremy Corbyn: The PM’s most influential adviser on the political economy

On 14th July a Moseley reader emailed to say “Theresa May’s speech yesterday sounded more left wing than your mate JC!”

theresa May

My reply was a one year snapshot of her actions in office which belied this humanitarian stance, published earlier on this site:

  • In 2010 she suspended the registration scheme for carers of children and vulnerable people.
  • On 4 August 2010 it was reported that May was scrapping the former Labour Government’s proposed “go orders” scheme to protect women from domestic violence by banning abusers from the victim’s home.
  • This was followed on 6 August 2010 by the closure of the previous Government’s “ContactPoint” database of 11 million under-18-year olds designed to protect children in the wake of the Victoria Climbiéchild abuse scandal.

“Rewarding hard-working people with higher wages”.

This is another of Ms May’s Corbyn-like soundbites made shortly after Corbyn’s description of what he saw as the difference between the  Conservative and Labour offerings, in the form of a question:

bbc kuenssberg 1 

“Do you want to be bargain-basement Britain on the edge of Europe, cutting corporate taxation, having very low wages, having grotesque inequalities of wealth? Or do you want to be a high-wage, high-investment economy that actually does provide decent chances and opportunities for all?”

We read that Theresa May has launched a cabinet committee on the economy and industrial strategy, which she is to chair; it will bring together the heads of more than ten departments and focus on “rewarding hard-working people with higher wages”.

Is Corbyn the most powerful, though least acknowledged of Theresa May’s advisers on the political economy?

If only she would heed him on nuclear and foreign policy issues.

 

 

 

Iannucci: now is the best time in a generation to go out and vote – generate churn and change in a way that doing nothing never can

armando iannucciIn a January article Iannucci wrote: “They’ve had months, years even, to prepare and mighty budgets for media spend, and yet we feel so little the wiser. You get the impression they’d love their manifestos to go out encrypted. It’s easy to see then why the Brand mantra – “Don’t Vote” – has so much appeal. Post 2010, we all got austerity measures, bedroom taxes, NHS reforms and tuition fees that absolutely nobody voted for because absolutely no political manifesto mentioned them. So why shouldn’t we abandon our political masters and stay at home?

Extracts from a more recent article by Armando Iannucci in the Observer

Questions to David Cameron included:

  1. What are the further £10bn of welfare cuts you need to make but haven’t detailed?
  2. Do you accept that parliament will not vote on a possible replacement to Trident until next year?
  3. If so, can you explain why the Ministry of Defence has for the last two years spent £1.24bn on “getting ready” a replacement and preparing “long lead” parts of an as-yet unvoted for missile system?
  4. Is it true that for your first year in office you had no idea of the full scale and ambition of Andrew Lansley’s NHS reforms and were furious when you found out?
  5. Why did you push the TV companies to schedule as many of the TV debates as possible before the publication of the party manifestos?
  6. How can the electorate question you on your proposals if you’ll take questions only before you propose them?
  7. Do you feel responsible for a political culture in which more than a million benefit claimants were sanctioned and penalised in 2013 but only one HSBC tax evader has been prosecuted?
  8. How do you feel about the rise in suicides of people who have been denied disability benefit?
  9. Why do we have so many food banks? Why do Save the Children and the Red Cross, two organisations set up to work abroad, now work extensively in the UK?
  10. How do you square launching the “big society” with Iain Duncan Smith’s refusal to meet volunteers from the food bank charity the Trussell Trust in 2013 because he felt they were “scaremongerers” and “political”?
  11. Why did IDS refuse to speak in a 2013 Commons debate on the growing use of food banks? Indeed, why did he leave that debate early?

Questions to Ed Miliband included:

  1. Why do you not make a speech highlighting the benefits immigration has brought to this country?
  1. Why did your work and pensions spokeswoman, Rachel Reeves, say Labour “is not the party of people on benefits”?
  2. If you’re prepared to admit that New Labour made mistakes over wealth inequality and financial deregulation, will you go further?
  3. Will you also admit that many of the administrative problems in the NHS were caused by New Labour’s mission to inject private market forces into an organisation not built for that purpose?
  4. Will you admit that much of New Labour’s obsessional drive to impose targets on the NHS pushed staff to breaking point with, to cite one example, paramedics suffering from urinary tract infections because their bosses wouldn’t permit them toilet breaks?
  5. If you’re in favour of commissioning a replacement to Trident, will you or any of your team be making a speech defending the cost and outlining your clear reasons for prioritising a nuclear deterrent over other spending plans? Or is this an awkward subject?
  6. When so much of the first-, second- and third-generation immigrant community votes for your party, why do you still prefer to use the language of “restricting” immigrant numbers employed by Conservatives and Ukip?
  7. Do you like the unemployed? Or are you embarrassed by them? Do you take it for granted they vote for you? Are you fully aware many of them are turning to the Greens, Ukip and the SNP instead?
  8. Why do you feel the need to talk tough about welfare cuts and immigration levels without much prompting?
  9. You do realise that the slogan Vote Labour, We’re a Little Like Ukip is not going to bring out your base?

Iannucci reflects: “Now is the best time in a generation to go out and vote. With such a fragmented system on offer, nothing is inevitable. Uncertainty may create instability, but it can also generate churn and change in a way that doing nothing never can. The truth is, we haven’t been abandoning politicians – they’ve been abandoning us . . . The 45% who voted yes to independence in Scotland . . . is driving the agenda in Scottish politics as powerfully as if it had been on the winning side . . . Alternative answers such as Green, nationalist, pro-NHS, even the Pub Landlord (standing against Nigel Farage), no longer look like stupid also-rans”.

To read the March article go to http://www.theguardian.com/commentisfree/2015/mar/28/questions-for-cameron-and-miliband-armando-iannucci