I was FURIOUS when I heard that Peter Mandelson wanted to press ahead with plans for part-privatisation of the Post Office. Only a snake of his notoriety would have the sliminess to propose such a plan at this current time: relying on the fact that such a story would be buried beneath (and get this...) the news of the catastrophic failure of a more high profile public/private collaboration, i.e. the HBOS and Lloyds debacle.
At the very moment, the very moment the public has lost its trust in private banks, seeing them for what they are as short-term shysters, THAT's the moment a trusted public institution: available on every village green, High Street and newsagent, could be at its strongest. Surely a so-called Labour government should STRENGTHEN the public service element of the Post Office by allowing it to offer bank accounts and mortgages. They would be obliged to stick to the strict interest rates and codes of conduct set by the government - if people want to take a risk on more attractive rates on offer at private banks, that's their choice. It wouldn't kill-off choice, but it would force the private sector to raise ethical standards, knowing there was a whiter-than-white alternative that the public can turn to.
Sound old fashioned? Fogeyish? What's wrong with that?
The second thing the government should do is to build more council houses. This would stimulate employment in the building trade in the short-term and give people affordable housing options in the long-term. I told you I didn't have the stats... but I think I'm right in saying that just over 300 council houses were built last year. There are just over 300 councils in Britain. One house per district is hardly going to solve this problem. Because surely this gets to the heart of the credit crisis: families who in the 80s and 90s would have found council housing rents within their budget, were being forced into the arms of dodgy banks and loan sharks in the 00s, seeking mortgages they couldn't afford or extortionate rental prices.
Neither of these things will happen. Not because they won't work, but because they pose too many thorny ideological questions for the ruling classes: using the Post Office as a national bank would be to admit the shortcomings of the private sector; building council houses would be to admit the shortcomings of the public/private housing association initiatives. Strengthening the public sector would leave the 'labour' party open to accusations of the dreaded 's' word, the word they posted down the memory hole some time in 1994...
The government hasn't just got into bed with big business. They've been sleeping together for years. But recently, the government has found out the nasty things big business gets up to when it's back is turned; it's found some money missing from it's handbag. In fact, big business has started to amble home drunk after a day at the bookies and slap the government around. But like all battered partners, the government is in denial: 'he loves me really' they lament.
The answer to this is the 's' word. I'm not afraid to say it: Socialism. Now is the time for socialism. The Labour government needs to realise that if they continue to have faith in doomed public/private marriages, David Cameron will casually stroll into number 10. Their only chance is to take radical action. And what could be more radical than socialism?
2 comments:
Morning! On the Council Housing front Council's currently have to pay 49% of housing rent they receive to the Government and cannot borrow money. Hence they do not have the capital to build many new homes. There have been talks recently of stopping the 49% going to the gov't so Council's have the money to invest in new homes.
Housing Associations will have built a lot more houses (I don't know how many exactly) but Seven Locks built 6 themselves and have more in the pipeline I understand. This is because Housing Associations are alloowed to borrow money where Council's are not and Housing Associations keep 100% of rent received to reinvest in improving and building homes.
Andy Trappitt
Rents Guru
Thanks. I think the point remains that when you consider the government can produce billions to fund a war, or to bail-out banks, if the will was there for more council housing, the money would be there too.
I now realise my mistake in not distinguishing between The Post Office and Royal Mail. Can't help thinking they should still merge them though, along with a state owned bank. I heard on the radio the other day: 'The difference between public and private is that private companies combine incompetence with greed, whereas public companies' incompetence is well-meaning'.
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