Author Archives: Geoffrey Payne

Opinion: Now that the ‘Old Economic Model’ is broken, a question for you…

The ‘Old Economic Model’ which brought many years of economic growth relied on people spending beyond their means and getting into debt. People like Vince Cable warned against this, but Gordan Brown didn’t listen, and now the bubble has burst – and we are all paying a very high price.

We need a new model, the old one is broken.

But what is this new model? What is going to drive growth in the fututre now that we cannot return to the old model? Or is infinite growth a Utopian fantasy, and that, apart from places like China and India, we should …

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Opinion: The Great Home Care Scandal

I prefer not to think about how I would die. I like the idea of dying peacefully in my sleep, not knowing what had happened, and ideally at a time when I have no great plans left for the future. I don’t suppose the percentage of > people who die like that is particularly high.

I have made a decision not to have children, but I wonder if I will regret it from a purely self-interested point of view when I am old. For it is perhaps more likely my death will follow a pattern familier to many; increasing illness, disability and reliance on others. And who will be these “others”? Those employed by the home care system, which was starkly exposed by the recent BBC Panarama programme.

It was shocking. It was an absolute disgrace. Care workers who were poorly trained, barely earning more
than the minimum wage, given little or no information on the people they were seeing, constantly on the phone about the next appointment whilst attempting to care for their current appointment, and only given a fraction of the time they were supposed to have with that person. People got injured, their quality of life was appalling and their deaths were hastened.

It was no surprise to me, but it was shocking to see. The suffering was terrible. It reminded me of Kinnock’s warning about voting in a Tory goverment: Make sure you don’t get ill. Only this is during a Labour Government, of course. How did it come to this?

One word stands out; privatisation.

Central government is putting pressure on local government to keep down costs. And whilst it costs local authorities £22 per hour to treat someone, the private sector puts in bids for £12 per hour on average. On Panarama we saw one case of companies bidding against each other, and going down to £9.95. In some places, whoever puts in the lowest tender won the contract. That is the main criteria.

Economic Liberals would argue that such low costs are acheived through greater efficiency. Panarama revealed the truth. Care was cheap because it was substandard. The regulators were interviewed and were tight lipped. For whatever reason, they were clearly not doing their job.

Maybe the philosophy of “light touch regulation” is not just the curse of the City, but a fundamental flaw in all government policy? The moneymen were also interviewed. I was rather shocked to see Justin Urqhart-Stewart for the first time. Normally I hear his voice on the BBC Today Programme discussing what is happening in the City. I wonder if he feels he was set up by the BBC on this one. He was saying what a great investment opportunity Elderly Home Care is. Logically he was right, given our aging population. Clearly he hadn’t factored in the human dimension and the potential for public uproar when we find out what is going on. Maybe he had and figured there is still lots of money to be made regardless.

It is amazing in one sense. It is the elderly who are more likely to vote, and are more likely to be a member of a political party. They ought to have more influence than they currently do.

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Opinion: What is an economic liberal?

As a phrase used in academic circles, it is associated with neo-liberals such as Hayak and Friedman, the pillars of 1980s Thatcherism. Within the Liberal Democrats the term has become popular, but understood in a different way. People like David Laws have tried to combine economic liberalism with social liberalism in order to acheive things in society that Thatcher was either not interested in, or failed to deliver. Economic Liberalism is meant to generate the wealth to make social justice affordable.

Given the success of Thatcherism in delivering victories for the Conservative party and transforming the Labour party, it would seem churlish to reject the whole ideology as we were prone to do at the time (and personally I am still strongly inclined to do). So what economic liberal values should we champion?

Maybe ambition is a good thing? Perhaps we should embrace innovation? Kick out the ‘Nanny State’? I like it that my local party is ambitious (albeit constantly thwarted by poor election results, but you can’t have everything). Our PPCs are ambitious. Neighbouring constituencies have candidates that are determined to win, and in the case of Lynne Featherstone, have done so already. It is good to have the drive for success. It is worth encouraging in society, and in our education system in particular.

But ambition has a dark side. Some people are more ambitious for themselves, rather than any principles that they believe in. You may have even met a few such people within the Liberal Democrats (it has been known). In foreign policy the ambition of “punching above your weight” is considered by new Labour to be a good thing, until we got flattened by Iraq (and Afghanistan will be next).

Economic liberals have been arguing until recently that the Liberal Democrats should appeal to the ambitious. Instead of appealing to weather-grizzled street protesters – which we happily did in the past – we need more sharp-suited city trader types, who like to bark down two phones at the same time.

For a while it became fashionable after the last general election to echo the sentiments that encouraged many of these people to join the Tories. We shouldn’t tax the rich more. Taxing them more is to punish them, and we should do the opposite and allow success to be rewarded. Money that goes to the government will be wasted anyway.

Now we discover the truth. It IS possible to pay people too much, and the Liberal Democrats now want to hunt down those people who were so irresponsible on the money markets. Give markets too much freedom, and you create a moral hazard where people only think about the short term profits of there actions, and neglect the long term consequences.

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Opinion: Kicking the Bankers

Nick Clegg’s leader’s speech to the party’s Harrogate spring conference contained a section where he gave the top-end bankers a good metaphorical kicking.

Personally I no sympathy for them. We will never live in an ideal world but, if we did, people would get paid according to what they contribute to society rather than the crude mechanism of what the market dictates. By that criterion, I have always believed that bankers are paid too much. The only thing you can realistically do to mitigate that is to tax them disproportionately so that at least that money can be spent on improving public services and benefit society as a whole.

However we do not live in an ideal world, and taxing people at the top end does not necessarily deliver the extra revenue, and there is no point in taxing people more simply to punish them with nothing in return. So let’s tax the rich by all means, but lets also take into account their cunning guile in avoiding paying up.

Today we see that paying people too much is not only unfair, it is also counter-productive. So Nick Clegg received a hearty round of applause for laying into them. No doubt he was hoping his outspoken attacks will hit the headlines and bring popularity to the Liberal Democrats. I hope it does … but in some ways he is missing the point.

The reason why bankers behaved irresponsibly was no doubt encouraged by “greed” – something which we are now all firmly against, but it was also encouraged by market forces. Many people caught up in the banking shambles were perfectly decent people, but they were simply doing what everyone else was doing and did not consider the consequences of their actions.

Of course they should have done, and possibly a few did, but it was not what they were paid to do.

There had been concern about the level of debt for many years, but as the years went by and growth continued it became easier to believe that the laws of economics had changed and that it was not only possible to go for short-term profits and not worry about the long-term consequences, but that the long-term consequences could somehow look after themselves.

Even on this forum I remember debating with fair-minded Liberal Democrats who believed that the level of debt was sustainable. My own opinions contrary to that were not based on my personal genius for understanding economics, but the arguments put forward by John Gary, Vince Cable and others that, at a simple level, growth fuelled by debt did not make sense and was bound to end in tears. I was expecting economic collapse year after year, and I really wonder today why it took so long.

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Opinion: What does the Green Alliance want the Lib Dems to do?

I was disappointed once again to hear the Green Alliance slag off the Liberal Democrats – along with all the other political parties – for its record on the environment – arguing that “None of the three main parties are currently showing the vision and courage to prepare the UK for the challenges ahead.” You can read their full report here.

What their critique amounts to is this: that although the Liberal Democrats have always led the field; and although the party has filled in the missing gaps identified previously by the Green Alliance; and although there is …

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Opinion: Why Labour can’t square the circle in Basra

Bob Ainsworth the defence minister had a torrid time on The Today Programme this week. He tried to persuade us that the British troops leaving Iraq today was a “success story”. John Humphreys put to him a quote from the police commander that “They have left me militias, they have left me gangsters, they have left me all the troubles in the world”.

On behalf of the government, Bob had to waffle on in response that “things were not perfect but they are better than before …”. Patently this was not the case, but the pretence had to be maintained in …

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Opinion: Time to revisit the Trident debate

In the coming leadership campaign, I would like to see a revisiting of the replacement of Trident debate where the party settled on a policy of fudge. Reluctantly I have to accept that we cannot do this before the next general election, but I am sure that whoever wins will be leader for at least the next two general elections, and he will have a big say in how the policy develops.

I believe that the current fudge of a policy gave the SNP a stick to beat us with in the last Scottish elections – and for them it worked. …

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Opinion: My conference awards

Best Fringe meeting:

The Liberator/ Lib Dem peace group “War on Terror”, with Craig Murray, former ambassador to Uzbekistan. There were some terrific fringe meetings this year, but this one was breathtaking.

Craig Murray was sacked from his position in Uzbekistan because he was determined to speak out against the appalling abuses of human rights in this country.

Uzbekistan is an “ally” in the war “against” terror and an important strategic country for the mining and transportation of important natural resources. It is also a totalitarian state with an appalling human rights record that easily compares with Iraq under Saddam Hussein or North Korea.

Craig spoke of how the government there claims that the opposition is part of Al-Qaeda. The government uses torture to force alleged opponents to admit they know a list of people they have never heard of before, and this “intelligence” is used by western intelligence agencies to “prove” that Al Qaeda is operating in Uzbekistan, and hence we support the government there. The “intelligence” services even know this is the case – because Craig told them – but they prefer the narrative to the truth.

The words “45 minutes” spring to mind.

I would like to write more, but it is best to read his own words in his book.

The meeting was at times very funny, and at other time horrific.

Most Important Fringe meeting:

Reinventing the State book launch – since the publication of the Orange Book, some Lib Dem members have got over-excited and started proclaiming the Lib Dems as a doctrinaire free market party. David Laws himself has claimed that his controversial chapter was misunderstood, and this fringe meeting proved to be an important correction. The anti-state rhetoric of both the Tories and the Lib Dems may sound similar at times, but the Conservative preference for a small state is very different from the Lib Dem preference for a decentralised state.

It was good to see such a wide range of speakers including Chris Huhne and Nick Clegg. And now I sense the party is a left-of-centre party again, as Ming said it would be under his leadership.

This fringe meeting was a book launch so here is the link.

Best speeches:

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Opinion: Europe – is Ming playing with fire?

This I am writing just before the Lib Dem conference gets started in Brighton. Events will take their course, and I do not know where the Lib Dems will end up by next Thursday. But I for one am feeling rattled already.

The Liberal Democrats have never been seriously divided over Europe before. Whilst Labour and the Tories tear themselves apart, the Liberal Democrats have been left sitting pretty, even though the electorate have been largely unsympathetic to our policy. Never mind, we reassure ourselves, the electorate don’t care about Europe anyway. To a large extent that is true, but it would obviously be better if they positively supported our policy.

Now all of a sudden, the most pro-European party may well inadvertently find itself supporting policies that lead the country out of the EU. How did it come to this?

The way in which the Lib Dems choose whether to support referenda or not is certainly something that I find confusing. We could have had a radical coalition in Scotland with the SNP, introducing the Local Income Tax, opposing the replacement of Trident and introducing radical Green taxes.

All that was thrown away because the party did not want a referendum on Scottish independence, which we were told would create uncertainty that would damage the Scottish economy. Now we are told that we support a referendum on whether or not to stay in the EU. What effect on the uncertainty of the outcome would that have on the economy?

Quite a bit more I would have thought!

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Opinion: BBC beaten by the anti-green lobby

There is meant to be a political consensus in this country. Global warming is taking place, and humans contribute to that. There is also a scientific consensus that this is the case as well, so since we are all agreed, it is surely the case that the BBC can go ahead to what is now the important next step; try to encourage the population of this country to do something about it?

In the same way the BBC encourages us not to commit crime, it is important for our future safety and wellbeing, indeed our survival, that we do not destroy the environment in which we live.

It appears we are not there yet. There is still a powerful anti-green movement in this country. When the BBC announced it was dropping an awareness-raising programme on climate change, only Chris Huhne had the courage to speak out against the decision:

“The consensus about global warming in the science community is now overwhelming, so accusing the BBC of campaigning on such an undisputed threat is like suggesting it should be even-handed between criminals and their victims.”

Why was that? What do Brown and Cameron think? If they both publicly agreed with Huhne, then surely the BBC would have to change its mind?

Posted in Op-eds | 8 Comments

Opinion: What Brown should be saying to Bush

Recently Lib Dem leader Ming Campbell commented on three things that Gordon Brown should be saying to George Bush;

“There are three things which should be on Gordon Brown’s agenda when he meets President Bush: renegotiation of the one-sided extradition treaty; the closure of the Guantanamo Bay detention centre; and a negotiated withdrawal of British forces from Iraq.

“These should be the objective of a candid friend. The excessively subordinated relationship between the President and Mr Blair should be put to bed.”

I agree wholeheartedly with all three. The problem is – as Lib Dems will well remember from Harrogate, when Ming offered Brown “5 tests” – that if you list things out loud then what is not included becomes just as important.

Four obvious omissions are:

Posted in Op-eds | Tagged | 4 Comments

Opinion: What do we think about ‘comrade Digby’?

When Gordon Brown became prime minister, we were briefed that he was suspect on the environment. He did not have a good record as the chancellor, and we were going to attack him on that.

So why would this be?

Labour ministers often start with good intentions on the environment, but fail to deliver. Their failure is down to how strong the anti-green movement is. Popular elements of the anti-green movement include the pro-car movement, which contains the likes of Jeremy Clarkson; the anti-tax movement (recently the Taxpayers Alliance was complaining about the amount spent on informing the public about global warming); …

Posted in Op-eds | 11 Comments

Isn’t this perfectly reasonable?

Recent criticism of Ming Campbell over the tactics of Gordon Brown has been unfair.

He should have said “no” immediately we are told by some. Well apart from silly arguments that have been made about it so far, which will soon be forgotten by the electorate, I do not see anything wrong in consulting colleagues first before giving an answer. As Liberals we are opposed to centralised power, so it must be right that Ming consults before deciding?

And I do not see anything wrong in Lib Dem members being advisors to the government. Surely it is in the national interest that …

Posted in Op-eds | 6 Comments

Opinion: Divisions between the rich and the poor

To the average person on a low income or who is unemployed, the idea that voting for a political party can make much, if any, difference to their life would seem absurd.

It has not always been this way. The Liberal government of 1906 did much to respond to the social agenda, although it did not do enough to halt the emergence the Labour party. The 1945 Labour government implemented policies such as the introduction of the NHS which secured the disproportionate support of the working class, even to this day.

Today of course the divisions between rich and poor are getting …

Posted in Op-eds | 7 Comments

Opinion: Why did the SNP outperform the Lib Dems?

We are assured by the Scottish Lib Dems that there is NOT an upswell of Scottish Nationalism taking hold at the moment. And indeed it is true, many SNP voters do not actually support independence. They do not mind a referendum, they will simply vote no.

Yet if you strip away the nationalism of the SNP, you are left with a party that is very similar the Liberal Democrats, only more forthright for example in not wanting to replace Trident.

That being the case, why is it that in the space of a couple of years, the SNP has suddenly done so …

Posted in Op-eds | 27 Comments
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  • Ben Wood
    It is such sad news. I was lucky to get to know Micheal over the last few years (working on a book project for the John Stuart Mill Institute). He reaffirmed fo...
  • Ed Sanderson
    Very sad news. I remember many a lively evening of erudite discussion in Leeds - Michael was a true intellect - and a genuinely warm soul. My condolences to his...
  • Jack
    This is bang on. What is the point of a liberal party that won't stand up for rights, especially when both government and opposition want to make hay out of div...
  • Matt (Bristol)
    I totally understand this is a key issue for many Lib Dems (and I'm not speaking for Lib Dems myself, I'm an ex-member). But I don't understand how this 'vangua...
  • John Grout
    Fully agree with all of this. I've seen a few MPs' Pride Month posts reference Section 28 abolition and Same-Sex Marriage - we need to start talking about this...