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item0030E  608, 609

608  20 January 2003   

Top-up Fees are wicked

It would be wicked to single out low-income students and their families, allowing the wealthy to pay university fees in cash, and force the poor into enhanced debt for much of their lives.  The only acceptable socialist solution is the introduction of a universal, redistributive, graduate income tax..

Those were my views when I first addressed the issue in December, when I used the term "Adult Education Premium" - in the terminology that has recently emerged, that is a Graduate Tax.  Every socialist argument points to this conclusion.  The mere recovery of top-up fees from low-income students, which seems to be the Government's preferred option, would do no more than to reinforce existing wealth differentials.  And for the pay-back levy to kick-in at £12,000 pa is wildly absurd - the figure should not be less than £20,000.

Redistributive options are limited, in an open, liberal, market-oriented society. They are limited to the beginning and ending of life, lifelong education and healthcare.  In between, personal freedom and market forces are likely to hold sway, Government redistributive measures resisted. Socialists should take advantage of every opportunity to redistribute wealth, however limited they are by the practicalities of politics. And in the provision of university education, funded by general taxation, socialists have a perfect opportunity.

It would be wicked to burden graduates from low-income families-of-origin with pay-back levies - effectively, a targeted tax - higher than the wealthier graduates with whom they must in life compete.  It would constitute a dark stain upon the Labour escutcheon...

A universal Graduate Tax would be widely perceived to be fair, with the Government meeting the full costs of university fees, while accepting that universities will always enjoy differing degrees of success in attracting supplementary donor funds and sponsorship of all kinds.  It might annoy a few middle-class voters, for whom Blair has an irrational fear and regard.

  • Socialists should stick to their guns, and work for a universal, tax-based solution, accepting the principles of a Graduate Tax.

Where do you stand on this issue?  Drop me a line

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609   20 January  2003   

Salariat v Proletariat

UK socialists are in disarray. The emergence of a well-paid political salariat has generated, within the Labour Party, a gulf between its leaders (i.e. all salaried politicians) and rank-and-file members. Popular suspicion of politicians' motives is weakening traditional bonds of political commitment and loyalty.  New Labour has triggered the formation of the Socialist Alliance, as a competing political Party, in Scotland and Wales the nationalist parties have made inroads into Labour's support. Socialists have of course always come in all shapes and sizes, and in many different hues of red and pink, both within the Party and outside.  But since 1945, the Labour Party has in practice been the primary socialist standard-bearer, the sole effective democratic manifestation of socialism in public life.

And the Labour Party is splintering.  This is the Party which I joined in June 1963, and which has been my political home ever since. The fissures are not between  Parliamentary factions as they once were - Militant, Tribune Group, and Payroll versus the Rest.  They are between the leaders (the salariat, the apparat) and the Party’s foot-soldiers, its paying members.   

There are now some 2,000 salaried Labour politicians, ranging from Ministers of the Crown to local authority Cabinet members, through the Scottish and Welsh Assemblies. Perhaps another 5,000 are trying to dig themselves in, as future successors to the present salaried incumbents. And there are some 350,000 actual or recent Party members, the political rank-and-file sufficiently interested to register for Party membership. Current Party membership is reported to have fallen to perhaps 250,000 - the precise figures are not important.  But the trends, and relations within the Party, certainly are important. 

For the salariat and the foot-soldiers are now singing from different hymn-sheets. 

  • The foot-soldiers want to see the creation of a new universal old age pension, payable as of right, delivering to every citizen the assurance of a rudimentary  income in old age, a state assurance against impoverishment - this was Labour's commitment in 1976, cruelly unpicked by Margaret Thatcher in 1981.

Cannot be done, says the salariat - too rigid a Treasury commitment, reducing economic and fiscal flexibility to an unacceptable degree, threatening Government’s room for manoeuvre – the Thatcher settlement must stand - look at the horrors of France and Germany, they are crippled by their pension system – we must maintain a system of low entitlement, supplemented by means-testing for those in greatest need.

  • The foot-soldiers want to reassert the primacy of non-selective, comprehensive education, and the ideal of a first-class school in every neighbourhood.

Cannot be done, says the salariat – parents must have choice, and that means encouraging the emergence of schools with different specialisms, permitting pupil selection – these options must all be provided within the state system, or else there will be an even greater flight of the middle-class from state schools into the private sector – what matters is what works…

  •  The foot-soldiers hate means-testing, and demand that the society of their choice should be based throughout upon doctrines of entitlement – in health, in education, in housing, and in pensions.

How naive, says the salariat – do these foot-soldiers understand nothing of the subtleties of retaining power in a modern democracy - how do they think we can keep our jobs?  Is not our job-security of our importance as well?  All declared political ends must be achievable by covert manipulation, by unobserved sleight-of-hand, and the Means-Tested State (including the clever device of the means-tested tax-credit, which conceals many subsidies...) is designed to deliver precisely that degree of flexibility, without changing the perceived headline rates of tax and Government expenditure.  Do they understand nothing, these foot-soldiers?

  • The foot-soldiers are outraged by abuses within the corporate sector, fat cat salaries, pensions scams, City scandals, arbitrary global manipulation, blatant tax evasion, anti-Union practices, and they demand radical reform, the assertion of socialist priorities throughout company law.

Cannot be done, says the salariat.- the UK cannot act unilaterally, and there is no hope of securing international agreement on company law reform - we must stick with the pack - we will do what we can, of course, but no radical reform is possible, such as that advocated at Tame the Corporations - we cannot risk offending the captains of industry, there would be a flight of corporate settlement and investment from the UK - and the foot-soldiers would not like that, would they?

  • The foot-soldiers long for a Party which allows them to participate, which respects their democratic rights, in which local CLPs can choose their own candidates, re-selecting at will, and making a contribution to the day-to-day cut-and-thrust of politics.

Cannot be done, says the salariat – if we are to attract “good people” into politics, they must be given a reasonable degree of career certainty, and re-selection procedures should be biased firmly in favour of retaining sitting members, to the extent that de-selection becomes virtually impossible.  And as for “policy”, foot-soldiers should leave that to the expert salariat, foot-soldiers concentrate on what the issues may or may not arise two years ahead, within a framework fixed by the salariat – that’s why we have so helpfully arranged Policy Forums, precisely to keep the foot-soldiers quiet, and stop them interfering with current politics.  Falling Party membership?  Oh, not very important really, just iconic - the salariat wins or loses Elections, by central action or inaction, for better or for worse..

  • The foot-soldiers are adamant that there should be for better protection as of right for individual workers against the vagaries of unemployment and of an arbitrary global economy, with improved unemployment benefit and job-search support - for foot-soldiers, insecurity of earned-income remains a key anxiety.

Too rigid and too expensive, says the salariat – look at the Continent, and see their problems – better to rely on the harsh disciplines of the market, in the American manner, knowing that even if individuals are penalised for inaction, the overall systemic gains will outweigh the hardship of a minority - no, that's not trickle-down, but a bit like percolate-through..

  • The foot-soldiers are exasperated by the authoritarianism of the salariat, its reliance on repressive policing and excessive incarceration, and the retention of a policy of drugs prohibition - which is very expensive, socially disruptive and wholly unsuccessful.

Foot-soldiers are bleeding-heart liberals, who should leave the really tough Government decisions to the salariat – some foot-soldiers even oppose war on Iraq, we understand, so we know where they are coming from – the truth is that any Government that does not act with consistent and well-publicised harshness on any of these issues – drugs, immigration, Saddam – will be severely punished at the polls – we know our voters, and they are a nasty lot, we know what needs to be done to get re-elected – and that is what the foot-soldiers want too, is it not?

  • The foot-soldiers dislike the massive constitutional centralisation of recent years, and yearn for some means of pursuing socialist solutions within their own regions and communities, of reconnecting with the exciting process of governing themselves.

We do agree with that, say the salariat – provided that we retain overall control, and that there is no substantive dilution of our power. Devolution to London?  No, London is too important for any real power to be allowed to leave our hands.  Scotland and Wales?  Effectively, we control the purse-strings, and anyway we regret relinquishing so much power in 1999 – as for the English regions, you can rest assured that they will not be allowed to exercise any power of any significance, although they have already been offered the option of talking-shops, to keep the children quiet while we get on with the real work of Government – anyhow, local government has declined in calibre beyond the point of no-return, in terms of both Councillors and Officers - we are therefore forced to muscle in on a wide range of local initiatives (which is admittedly good for our political standing, therefore re-election prospects).  We are completely in favour of local devolution, so long as the compliant local authorities prove to us in advance that they will keep their noses clean – we have cunningly called that “earned autonomy” – clever, huh?

  • The foot-soldiers dislike the massive extension of the private sector into state services via the Private Finance Initiative – they would prefer to re-assert the socialist presumption that public services should be delivered by public employees, answerable to a public authority.

That’s very old-fashioned, says the salariat - that went out with the Ark, and we must modernize – the private sector can handle wide swathes of public service functions, and should be encouraged to do so - the practice reduces the exposure of Ministers and local councillors to criticism for non-performance, because "the contractors" can be blamed  – PFI allows a major public works programme to go ahead off-balance-sheet, without frightening the middle-class horses with obvious taxation increases – what the eye does not see, the heart does not grieve over – and Gordon’s powers of prestidigitation are legendary...

  • No wonder there are growing distances within the Party.

What do you think?  Drop me a line

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