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Diary Note /0063

Thursday 4 July 2002

Did you miss the previous DiaryNote?      Check it out  

Just mention Proudhon... 

Just mention Proudhon, and you bring out the real socialists, the principled thinkers of the old school.  And my quoting Proudhon last weekend ("Property is theft..") prompted an immediate response from my tenacious correspondent Michael McCarthy.

My own focus was on the very broad concept of private property itself, from freeholds to copyrights, patents and the Plant Varieties and Seeds Act.   MMcM, by contrast, drew attention specifically to the brooding power of the UK agricultural landowners - and to their conspiratorial role in maintaining high property values.  He referred me to a remarkable new book by Kevin Cahill Who Owns Britain, currently being developed as a website  at
www.who-owns-britain.com.  And the secrecy of the UK system of unregistered land is certainly one factor in that awesome conspiracy - a conspiracy which contributes so massively to today's housing shortages.

But this argument packs a killer punch. For the conspiracy is deepened decisively by factors eminently under our immediate control.  Indeed, among the leading co-conspirators are Labour Councillors, throughout the UK.  They conspire to promote the idea that the UK is short of Lebensraum, that residential planning consents must be very carefully rationed, Green Belt must be protected, and amenity conserved.  As a former housebuilder by trade, I know about high land values, and the failures of land-use planning and land taxation.   I wrote about the problem in early 1997, before Labour returned to power.  If you have a moment, read a short article of mine that was published at the time in  Prospect

After three attempts to break the Great Land Conspiracy (1947, 1965, and 1976) it seems that Labour may now have given up.  We should return to the attack, for a fourth attempt, by introducing a new Property Tax upon the ownership of land, not its occupation - look back at my own scheme, published last January UK Property Tax .  I hope the redoubtable MMcM will agree...


I am convinced that radicalism would now be electorally attractive, in tackling the Super Rich.  Where do you stand?
Drop me a line > < Top 

Blunkett
Defeated Again

We are being "consulted" again, on the question of ID cards.  Which simply means that David Blunkett has caved in, yet again, to the Home Office.  The last time this happened was last February, and I let off all my steam then  Curate Blunkett strikes again . The Home Office is still trying to wear us down - they never give up do they?

"Ministerial capture" remains a real threat, to democratic politics.  Regulatory capture is better known, where big business interests acquire a dominant influence over the Regulators set up to control them.  But Ministerial capture by civil servants is just as dangerous.  The preoccupation of the Home Office hierarchy with identity cards is well-known - yet Ministers fall for the same old one-card trick again, and again, and again.

And this is not the first time, for David Blunkett.  He caved in over the Police employment conditions, allowing them to retain their archaic "entitlement" to high-paid overtime.  Blunkett has failed to resist the convenient expansion of private-enterprise prisons.  Blunkett has expanded repressive Home Office measures to crack down on illegal immigrants, and pursued a harsh Less Eligibility regime which belongs to the 1860s.  Blunkett still adheres to the Home Office line on drugs, "narcotics", inherited from the 1920s.  In all these sectors, Labour's position is indistinguishable from the Tories - unless it be to veer further to the right.

Watch out, David.  Defeat can be catching.  Re-assert your natural socialism.  Please don't get caught too often...

There are some good things to say about Labour's tenure of the Home Office.  But not many.  Which of them makes the earth move - for you?

Drop me a line >

Brains count

I have a new admiration for David "Two Brains" Willetts, the Tory shadow spokesman.  It was his "back-o'-th'-envelope" hunch that detected the most enormous mistake in recent official statistics, recording UK private pensions savings.  On 16 May, new figures were released which purported to show that between 1997 and 2001, private savings for pensions increased from £50bn a year to £86bn.  Willetts suspected a mistake, based on his general knowledge of Government statistics..

He turns out to have been right.  The Office for National Statistics acknowledges that double-counting generated the wrong figure see  ONS Statement  The right figure may well be nearer the £51bn suggested by Two Brains.  Which would mean that there had been no increase at all. And that the pensions black-hole is now far bigger than supposed.

Full marks to Willetts!  But the Administration's failure to pick up such an gigantic error before publication is profoundly worrying.  An exaggeration of £25 billion per year!  The only possible explanation is wishful thinking.  The Government wishes that the pensions crisis were not as serious as it is, and everyone (Ministers and civil servants alike) failed to spot the gap, spurred on by wishful thinking.  Until Two Brains came along, with his envelope.

Dont you admire Two Brains too?  I would be very proud if I had double-guessed the Office of National Statistics in such a dramatic way..  
let me know what you think Drop me a line >
Top  nt>


"Increasingly
punitive society"

This telling phrase appeared in an explanatory "advertisement" published this week by Schizophrenia Association.

I have no doubt that the allusion is correct.  Our society is, for whatever reason, becoming increasingly punitive in style.  We are, as a society, resorting more and more to prohibition and criminalisation as a means of social control.  But why?  Why is it happening now?

I have two explanations. 

  • My first is that the anxiety levels of mankind are rising, instilling fears in current generations: I argued this in my 1992 essay
  • Multiple Differential Uncertainty, and that stands open for the judgment of others. 
  • My second is that our systems of government have become far too centralised, and that repression and prohibition are the only instruments available to over-centralised governments.  The redistribution of power is now a political priority of the highest order.  Micro-management is not an option, for Big Governments - witness the absurdity of Labour's designation of ten Ministers to receive weekly reports of the incidence of street crime, in ten specific areas - how ridiculous!  The incident demonstrates the woeful poverty of over-centralised government.  Street crime should be monitored by the local communities directly affected by it.

Do you agree that our society is increasingly repressive?  If so, what is the explanation?

Let me know what you think
 
Drop me a line > < Top

I reckon this is symbolic, after all.  It represents the ephemeral nature of political action, activists constantly ducking and diving, scheming and weaving, devising new "little systems" - those few of you with "Chapel" backgrounds may remember my favourite lines from a hymn - "Our little systems have their day, they have their day, and cease to be..." - I am an inveterate inventor of little systems - Ozymandias, an' all that. I reckon this beautiful butterfly, snatched free from some Internet clip-art file, symbolises all that.

Spinning Accelerates

July started with more spin, unashamed news massage by the Government - listening to Today on Monday morning 1 July, I was incensed to hear Cabinet Office Minister Barbara Roche extolling the creative humanity of the Government's future publication of policies for the Rehabilitation of Offenders.  She signed off by saying "I am sure everybody will be pleased with it, when it appears..."  That is sheer impertinence, coming from a public servant.  She should either have something substantive to say, or stay off the air...

What examples of spin have you spotted this week?  From either the Government or the corporate sector?
Drop me a line > < Top


The Leak of the Year

Spinning embraces leaking.  And last weekend, the mighty Treasury masterminded The Leak of the Year.  They are revising the dreaded “Barnett Formula” (for the regional redistribution of tax income).  And the preliminary results were leaked – see  Regions face funding shake-up from last Monday’s Guardian. These figures are dynamite.  In terms of annual public-spending per capita, some of the key winners and the losers are identified.  And these figures are said to take account of statistical disparities: they therefore reflect unjustifiable differences in public spending, which ought to be rectified.

On that footing, there are certain obvious winners.  Whitehall has been short-changing the Welsh by £213 per head (say, £600m a year, potentially increasing the Assembly annual Budget by 7%).  And North-East residents are losing out too – they would benefit by a whopping £600 each.  By the same token, the Northern Irish would lose £364 each, the Scots would lose £600 each, and Londoners (the most favoured of all UK residents) would lose £1,125 each – every year.

These figures were slipped out in a low-key leak to David Walker in last Monday’s Guardian – just to get them unobtrusively into the public bloodstream and let them sink in, over the Summer.  Did you spot them?  Or did this bombshell hit you right here, on this website?  And when will they really be published?

Be straight with me now – which was it?
Drop me a line > < Top   


Market Denial

My regular readers will be familiar with my theory of market denial.  My idea is that nation-states should discipline rogue corporations by denying them access to their national markets.  I would wish to constrain the use of such techniques, by international treaty – because I remain an Adam Smith free trader at heart, and I recognise that trade constraints are a bad idea.  Nevertheless, this technique represents one of the few sanctions capable of disciplining rogue corporations (either individually or by class) – hit ‘em where it hurts!  I advocate the use of market denial as a sanction for unacceptable commercial behaviour, whether corporate or otherwise. 

The technique can be used selectively at all levels of government.  The Port of Baltimore, for instance, already prevents single-hulled oil-tankers from entering its harbour. The Port Authority insists on the high safety-standard of double-hulled vessels, as an assurance against oil spillage.  And this week, the UK Financial Services Authority has given me another good example. 

The UK authorities long been concerned about the London operations of subsidiaries of foreign banks that are registered in poorly regulated jurisdictions.  Where banks are permitted to operate on a cowboy basis in their home-state, they will no longer be allowed to trade in London.  This year, some twelve banks have already been forced to withdraw from the London market.  That’s market denial.

I reckon the signs are good.  Market denial is a mode of enforcement whose time has come.  While one should at all times be zealous to avoid abuse, the EU would be in a particularly strong position to deploy this technique, to clean up the corporate sector.

Can you think of other examples? 
Drop me a line >  Top 


Local Government Stagnates

The unpalatable truth is sinking in.  Labour has fouled up, on local government.  Labour's ideas are quickly running into the sand, and could still cause the Party grave political discomfort.  Elected mayors are a busted flush, misconceived in principle and ill-thought out in practice.  And with a massive increase in the number and level of salaries now paid to mediocre Councillors, the clouds of public wrath are gathering.

The Local Government Act 2000, heralded as a great "modernising" force in local government, is dead in the water.  The think-tank Demos, the spiritual home of the formidable Downing Street guru Geoff Mulgan, has published a new critique, cleverly entitled Local Authority?  It blows the lid off the local government reform process – check it out at  Demos

I make no apology for repeating my advice.  I say that the introduction of regional government (I would prefer to call it provincial government) should be accompanied by the creation of 40 or so "small regions" within the provincial framework, most of them centred on cities, but others with small-town groupings.  Both province and region would be governed by salaried representatives, at the rate of one each per Constituency. That should be coupled with a deliberate extension of community (town and parish) councils at neighbourhood level.  Such a reform would engage the whole population in the process of reform, and unleash new enthusiasms throughout our public life.  I commend it to Labour, as third term business...

What do you think?  
Drop me a line > Top 


No Contract,
No way

I rebel at my Government's use of the spurious contract as a governmental technique.  Convicted drug users are said to consent to medication, by way of contract.  Parents and pupils are said to commit themselves, by way of school contract.  Errant patients, it is proposed, should be penalised for breaking a contract to see the doctor, at a particular time and place.  And now, prisoners on release will get better treatment, higher benefits, if they enter into a rehabilitation contract with the parole authorities.

Where the State is a monopoly supplier, or is empowered to coerce the individual, it is mischievous to embellish the relationship as a consensual one, and to misdescribe it as a "contract".  This is an abuse of language, an abuse of power. The binding nature of a contract, as a matter of law, flows from the free and unfettered consensus of the parties thereto.  That is fundamental to the concept of a binding contract.

And there are very few situations where the citizen can be considered the equal of the State, genuinely free to contract - or not to contract.  Is the drug user, offered the chance to avoid imprisonment, genuinely free to refuse medication?  Is the prisoner, offered early and better-paid release, genuinely free to choose to remain in prison?  Is the parent with a child legally required to attend its local school genuinely free to disregard the Headteacher, with pen in hand, poised to sign the "contract"?

Of course not. The sooner that this deceitful technique is dispensed with, the better.

Have you been forced to enter into any contract with the State? 
Drop me a line > Top


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