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item0064D  946, 947

946   11 March 2004  

  • Michael McCarthy's letter about the cynical denial of the free movement of labour within the European Union provoked this immediate response from Peter Fiztgerald, Cardiff Solicitor...

Roger

Michael McCarthy's point is well made.  Both politicians and trade unionists have difficulty in dealing with this issue - the unions, mainly because of their tendency to protect their own so-called 'turf.'

From a socialist perspective, it would have been desirable to have defined the rights of East European workers before embarking upon enlargement in the first place. The opportunity for definition should indeed have been grasped when dealing with the new “Constitution for Europe”.  I would have welcomed a clear definition of the rights of a European worker/citizen vis-a-vis the institutions of the nation states and of the EU itself..  The present Social Chapter, as well as European company and employment rights, could have been strengthened by a closer alignment between nation states.  At the same time, we could have provided a clearer framework for the subsidiarity of political power within the regions of each national system.

I was amused recently at the
public indignation triggered by the fast-tracking "profitable"  economic migrants to the UK.  This has been going on for years - and I speak from the experience of being a paid professional charged with getting these wealthy individuals into the UK.  But, as Michael McCarthy says, that was because these individuals were treated as vehicles for capital - and not as “labour” at all....

Regards
Peter

Peter brings a new perspective to the debate - what's your?  Drop me a line

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947  12 March  2004  

Housing Benefit
a truly liberal reform

This week's report from Secretary of State Andrew Smith graphically issues a pet theme of mine.  It is that, as Right/Left divisions lose their cutting edge, issues of human dignity and respect - issues of human and civil rights - will rise rapidly up the political agenda.  It is, sadly, unlikely that these pages are read by any of the 4,000,000 poorer UK tenants who are entitled to receive Housing Benefit.  But it is there, in the murky depths of the Department of Work and Pensions, that a new view of citizenship and human nature is emerging.  I am delighted.


The Government has found a more honourable, more liberal and cost-effective way of assisting private tenants.  Historically, Housing Benefit has been paid direct to landlords.  My memory tells me (correct me, if I'm wrong) that when this benefit was introduced by the Thatcher Government, the object was to pay to private landlords a realistic market rent for the provision of social housing, on the terms prevailing in their locality.  As rents soared, so too did Housing Benefit.  And the system operated over tenants' heads, in that the Government paid the benefit direct into the landlords' bank accounts.  This was an example of the corporatist state, with the State paying over moneys direct to the rentiers, the owners of capital.

Labour has initiated a clever experiment.  In nine pilot areas, the Department has paid to tenants an "average rental voucher", based on a standardised local rent for the category of accommodation which his family needs dictate.  Each tenant is encouraged to go into the local market-place and find accommodation for himself, using the "rental voucher".  If he is content with a lower-rented unit, he can pocket the difference.  If he takes on above-average accommodation, he must pay the difference himself.

Just consider the theoretical advantages of this system.

Trust: the Benefit-money is entrusted to the would-be tenant, for him to make his own decision - there is no "allocation" by any official.  That respects human dignity, and must be very good for morale.

Market Operation: thousands of tenants are brought into play as market principals, each exercising their judgment on what local tenancies are worth, and improving the operation of the local market;

Administrative costs: Civil Service costs have been cut by 75%.

If this system were to work UK-wide, the advantages would be enormous.  But is this a "right-wing" reform, or "left-wing"?  Or LibDem?  I dunno.  I know it is a good idea, trusting our fellow citizens to make sensible judgments about their own interests and requirements, and minimising the cost of providing Housing Benefit.  There are bound to be glitches, as people learn, over the years, how to "play the system.

  • But I congratulate Andrew Smith on a great idea, successfully piloted.  Let's have more from the same mould.

What do you think?  Drop me a line

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- is that a deal?  Roger WE