The Left’s Elephant in the Room

My last piece for this blog was about the over-use of political clichés. So what better way to start my next one than to use one of my own? When it comes to the identity of the modern Left, there’s certainly an elephant in the room, and it’s a bloody huge one: public ownership.

Start a conversation about nationalisation now, and the conversation will quickly descend towards striking grave diggers in the ‘Winter of Discontent’ via curly-edged British Rail sandwiches and surly ticket collectors. What actually happened in those troubled years of the late 1970s is more nuanced than the accepted version of events would have us believe, and is too complex to go into here. But it did not happen because too much of the economy was in state hands. Neither was it the root cause of union militancy, the decline of Britain’s influence on the world stage, or the dodgy rust-proofing on your dad’s Austin Allegro.

The problem with referring back to the ‘70s is that customer service was awful in both public and privately owned businesses back then. The slick, market-researched customer experience of today was still a long way off in the service sector. One of the decade’s best-loved comedies, Fawlty Towers, lampooned these shortcomings so effectively. Singling out BR or the gas board is simply unfair. And yes, British Leyland cars were dreadful, but the Fords and Vauxhalls of the time were rot-boxes as well. Besides, BL was taken into public ownership only as a last ditch attempt to prevent much of the Midlands from being turfed onto the dole should the company collapse. However understandable the decision, it was hardly carefully thought out – the government effectively had not choice – so it does not make a good example either. At any rate, the shape of Britain’s economy has changed immeasurably since then. Among the big nationalisations of the post war era were huge employers like coal and steel, which have all but disappeared. Leaving the trappings of this era behind, I would argue that not only should public ownership be up for discussion, it needs to central to a modern, and modernising, Left.

Nostalgia for the better points of pre-Thatcher Britain can pre-occupy the Left too much (I’ve been as guilty of this as anyone) but this isn’t the game the Left should be playing. The Left ought to be forward, not backward looking, only retaining a cautious eye in the rear-view mirror. Tony Blair was able to play on this notion of out-datedness when, in a largely symbolic gesture of defiance to Labour’s left wing, he removed the commitment to public ownership from Clause 4 of the party’s constitution. Blair, with none of the ideological grounding of his predecessors, argued that in their fixation on state ownership the left was ‘confusing the means with the end’. This might have been a fair argument at the time, but the intervening 20 years prove the opposite: the Blairites were confusing the ends with the means. Unless the desirable ‘end’, of course, was a society with a perpetually widening wealth gap and our infrastructure in the hands of private profiteers. Ostensibly believing in a fairer society, Labour’s acceptance of the free market ought to be seen as a failed experiment. Putting shareholders instead of the public at the economy’s heart never fosters greater equality. Instead of Thatcher’s dream of popular capitalism, a share-owning democracy, we’ve ended up with most of the former national utilities in (often foreign) millionaires’ hands. Remember when they belonged to us – all of us?

 The Left isn’t just ignoring its own past, it’s also missing its chance to shape the future. Public ownership doesn’t need to mean returning doggedly to the past. There are other models of public ownership – for example worker’s or consumer co-ops for example – that should be explored. Or other methods of encouraging competition whilst maintaining a decent service. Take the German railway’s system of ‘open access’ for example. In contrast to the UK’s daft decision to totally break up BR, the German government retained the ownership and operation of their system. But there’s no state monopoly: if a firm thinks it has spotted a gap in the market, or thinks it can run a better service than the state company does, they have to be given access onto the network. Surely this is the best of both worlds. Unlike here. Competition? Choice? if I want to travel to Newcastle from Carlisle for example, I can choose between Northern Rail or, er, Northern Rail.

But above all, the Left needs to be more explicit in challenging some accepted wisdom. First of all is the belief that nationalisation is inherently unpopular. It’s not; look how careful the Tories have to be when they air ideas about ‘introducing competition’ to the NHS. There was never a majority of public opinion in favour of breaking up BR, either, and there’s been a well-deserved outcry over the cheapo sell-off of Royal Mail. And then there’s your grandma’s gas bill. Each winter we hear about more vulnerable people forced to choose between heating and eating. And there’s sod all we can do about it, because the energy companies are private, for-profit concerns. When the price of wholesale energy goes up, so do the bills. But when the wholesale price falls, there’s immediately talk of worn-out infrastructure and expensive renewal programmes.

So you know what I think Labour should do? Commit the next Labour government to taking gas and electricity supply back into government hands. It would mean the worn out infrastructure could be replaced in a proper, logical way (infrastructure that last saw major investment when it was state owned) and policies could be put in place to help the most vulnerable afford this basic comfort. For some reason, economic planning has become a no-go area for politicians, but surely all they would need to say is explain that in the same way a sensible household plans its finances, it makes sense for a government to do the same, as far as essential services go. Of course the tabloids would chuck out the usual ‘Red Ed’ platitudes, but so what? Based on the reaction to Miliband briefly laying into the energy companies not long ago, it could actually be very popular. After twenty-odd years of kowtowing to the Tories’ economics, the Labour Party stating that it will re-nationalise an unpopular privatised sector for practical, sensible reasons could have Cameron and co. on the back foot and running scared.

British Rail image created by Steve Jones and used under creative commons.