Malcolm Blair-Robinson's Blog, page 146
October 26, 2015
Commons v Lords
At the time of writing this post the outcome of what is said to be a constitutional drama is uncertain. What is certain however is the nonsense being talked about the constitution itself. This is because although we do not have one, it is indeed the case that there is a convention, not a codified item in an approved democratic constitution, which says that Commons is in charge of the money and will not be challenged on financial legislation by the Lords. However the crafty little people in the Tory government’s legislative wing knew that this item about tax credits would be contentious when the figures became truly revealed, so they lifted it out of the finance bill and used some other form of statutory instrument that requires less discussion and debate. Thus it arrives in the Lords without its bullet proof vest. And many of their Lordships and especially their Ladyships, have decided to take pots shots at it.
Well we shall have to see what happens. It could be rather fun were it not for the anguish of those unfortunate people on lower incomes whose modest standards will be further reduced by what is a wise measure in principle, but administered with that mean streak in the nasty party which, though it has moved to the left, has not gone away. especially not now that it has Power. To be mean and nasty and everything.
October 25, 2015
Downfall In Downing Street: Buy It Now!
Set in the mid nineteen nineties, this fast moving 
thriller lifts the curtain on sex, sleaze and corruption in high places as the long reign of the government totters to an end, following the ousting of the iconic Margaret Thatcher. The novel catches the mood of those times with a host of fictional characters who engage in political intrigue, sex, money laundering and murder, pursued by an Irish investigative journalist and his girlfriend, the daughter of a cabinet minister found dead in a hotel room after bondage sex.
Labour’s Momentum
The heart of New Labour, now somewhat old hat, is gripped with fear, least Momentum demand a re-selection regime to be adopted by the party leading to many right wingers being kicked out of safe parliamentary seats. Momentum enthusiasts deny they are even contemplating such a divisive plan.
This blog thinks it should be mandatory under election law for all candidates of all parties to be competitively re-selected before being formally be adopted as official party candidates before every general election. Times change, centres of gravity shift and opinions alter. Parliament should reflect the contemporary view of the people who are current members of the various parties. The problem for the Labour Party in parliament is that only a few MPs reflect the aspirations of current party members. New Labour loyalists, many of whom are now to the right of the left wing of the Tories, know that if they had to go through a re-selection process, few would be chosen. That is democracy.
October 20, 2015
China: A New Friend
This blog backs the UK’s new foreign policy 100%. Yes of course there are things about the way China is run which we do not like and no doubt the reverse is also true. But this brave foreign policy initiative, the first by the UK on an historic scale for fifty years or more, which is independent of the United States, is based upon a much older theme and one which drove the creation of the Empire. The theme is not ideological confrontation. It self interest founded on trade and economic development. It is a foreign policy driven by the treasury rather than the defence ministry. If Osborne, Cameron and Hammond can build a special relationship with China it will not only open up new economic prospects, but it will also redefine the nature of the UK as a world power.
America has always followed a policy of confrontation and challenge, even with the UK, from whom it bust apart by force of arms. Britain is a much smaller country and it had to carve its place in the world by making friends and influencing people through trade and mutual interest. This brought about a great empire. When that faded, we were too inclined to cling to America as our source of strength. Without deserting our American family, we can help ourselves a good deal by branching out. In the end we will be more use to America that way.
October 17, 2015
Pacifying The Doctors
Clearly it makes sense for the NHS to work at weekends. In fact this blog has advocated a quite different system where hospitals run a three shift 24 hour pattern which never closes. There is no reason why routine operations and care cannot take place on a round the clock basis, eliminating waiting lists and delays, together with the ludicrous and expensive bureaucracy required to administer all these lists and targets.
Among the reforms needed to make real progress is one of the medical profession involving doctors and consultants, the way they are organised and the way they see themselves, their hierarchy and some of their eighteenth century traditions. Above all moonlighting into lucrative private practice fed by customers delayed by the NHS is a no go. So is the self employed status of GPs. But I am moving ahead of current events I know. Unfortunately until events catch up the NHS will continue to lurch from one problem to the next.
QE for Beginners
QE in various forms is now very much part of the economic conversation, especially in connection with a fresh approach to financial issues by the new leadership of the Labour party. Dynamic Quantitative Easing remains under government, not bank, control and targets specific investment projects without borrowing, interest or repayments. It can reboot the economy, boost manufacturing and exports and enable sustained growth of real national wealth shared by all, rather than just asset inflation which is the downside of ordinary QE. If you want to find out more you can enjoy a lucid explanation of the original idea from the link below.
Steel: Save It.
There is no way an industrial country can allow itself to go out of steel production. The fact that we are presently a debt driven economy obsessed with shopping and house ownership does not alter the fact that we cannot go on that way. We have to restore a very large part of our industrial capacity so that we can re-balance our economy and restore prosperity to the majority. The Tories talk of doing this, but follow policies which can never deliver it. Neither will the markets.
To get industry going again two things have to happen. There are loads of other musts, but without these two fundamentals there is no way forward. The first is that the value of sterling has to come down and the second is that industry must have access to cheaper energy. As a follow on to my 2009 book 2010 A Blueprint For Change, with the subtitle Bold Ideas For Voters, I am well advanced on Dynamic Socialism subtitled Bold Ideas For Labour. This will offer a fundamentally new economic model tailored to the times in which we find ourselves. Watch this space.
October 16, 2015
Tax Credits:Tears of Despair
The report that a member of the BBC’s Question Time audience was reduced to tears because of the effect of the cut in tax credits is distressing. It is also something of a political embarrassment.
This blog has commented often about the ridiculous situation where low wages and excessive rents are subsidised by benefits so as to support the private sector, without which businesses would have to pay higher wages and landlords would have to charge no more than tenants could afford. Unfortunately it is not that simple. To stop the rent subsidies you would have to control rents at affordable levels, give long term security of tenure by law and consequently crash house prices. Even Osborne dare not go there.
But on the face of it tax credits looked easy. Cut them, but increase the minimum wage to compensate. Simple. Well not quite. It turns out that most beneficiaries of tax credits are not on the minimum wage. They are families under pressure who are hard working but still cannot make ends meet. They are going to be very hard hit. Many, if not most, voted Tory because it was now the party of hard working people who want to get on. Tears will flow in rivers. As Boris has said this is a political disaster. The wound of betrayal will be raw for years. Even till 2020.
October 15, 2015
Quantitative Easing Explained
QE in various forms is now very much part of the economic conversation, especially in connection with a fresh approach to financial issues by the new leadership of the Labour party. Dynamic Quantitative Easing remains under government, not bank, control and targets specific investment projects without borrowing, interest or repayments. It can reboot the economy, boost manufacturing and exports and enable sustained growth of real national wealth shared by all, rather than just asset inflation which is the downside of ordinary QE. If you want to find out more you can enjoy a lucid explanation of the original idea from the link below.
McDonnell: Embarrassing Yes, But Unnecessary?
George Osborne had a bit of a field day yesterday with his parliamentary gimmick which has wound Labour up in knots. Corbyn looked subdued as his Shadow Chancellor put a brave face on what had been something of a disaster. Underlying all of it is the fact that the parliamentary party is way out of step with the Labour membership, represented by Corbyn and McDonnell. Add to this the fact that Corbyn and McDonnell have little experience of leading (though lots at rebelling) and events are unlikely to run smoothly. Two things must now happen.
Labour MPs must recognise, as many do, that whatever their own preference, because they themselves had lost touch with their party’s natural roots, it has chosen a leader far to the left, because that is where the new engine and of change is developing, not just in Britain , but across Europe and even to a degree in the US, where Bernie Sanders is pulling surprising crowds. The time has come to fall in line and help. Or join the Tories.
Next the new Labour leadership must now sharpen up its act on the economy. It did well in the leadership election, even coming up with the promising, though slightly flawed but easily modified, people’s quantitative easing. At least this was a new idea to offer a real way through the stranglehold of debt and shortage of real money in the ordinary economy. We need to start hearing more about a new economic agenda that challenges almost all the verities of Thatcherism which are now beginning to look frayed and counter productive. And there is something else. Yes there is a certain refreshing appeal about being not too slick and bit unprepared in a hated (by the public) over spun, too slick, deeply distrusted political culture. But they face Osborne. He is the slickest, craftiest, sharpest tool in the political box. That is why yesterday was his. His weakness is that politics is also about tomorrow.
