British politics

Bagehot's notebook

  • Civil disorder and looting hit England

    The transportation option

    Aug 18th 2011, 16:52 by Bagehot

    HERE is this week's print edition column, expanding on some of the historical thoughts broached on this blog earlier in the week:

    FOR the English, there were many reasons why losing the American colonies was annoying. One was that America had been a handy place to exile convicts, some 40,000 of them over the years. George III took a personal interest in the hunt for new spots to resettle those (in his words) “unworthy to remain in this island”. Gibraltar was considered, as was west Africa, before ministers plumped for newly discovered Australia. By the time transportation ended (accused of lowering the tone of the Australian colonies), almost 200,000 men, women and children had been shipped Down Under, most never to return. Transportation was sorely missed: Parliament pondered new penal colonies in the Falkland Islands and even Antarctica, amid public panic at the idea of ex-prisoners roaming English streets.

    Repeatedly in history, when faced with rising crime or mob violence, respectable English citizens have yearned for those who alarm them to vanish: whether via the gallows, by removal to the edges of the earth, behind prison walls or (after race riots in the late 20th century) through calls for immigration to be curbed or reversed. Yet geography has just as often thwarted such desires: in urbanised, crowded England, the respectable have long lived cheek-by-jowl with those who alarm them.

    They still do. Indeed, soaring property prices—which have pushed London’s middle classes into ever-edgier neighbourhoods—help explain some of the more lurid headlines during last week’s disorder. For instance, the press reported hand-to-hand combat between masked looters and staff armed with rolling pins at a Michelin-starred restaurant in Notting Hill, in west London. The last time England saw such serious riots, in 1981, much of Notting Hill was a tough place, still blighted by slum housing; now it’s a partly tough place, full of millionaires.

    A week after the riots, sharp political debate has broken out about what lies behind those four days and nights of near-anarchy, and how to fix the social failings they exposed. Much of the debate has fallen into the familiar tramlines of a clash between an authoritarian right and a compassionate left. But other ancient echoes can also be heard.

    Conservative MPs have praised judges for handing down swingeing punishments, including four-year jail terms handed to two men who (unsuccessfully) tried to whip up riots via their Facebook pages. Tory MPs have backed moves to evict the families of convicted rioters from council housing. The home secretary, Theresa May, says officials will look at general dusk-to-dawn curfews. The conservative press is demanding the reversal of plans to scrap thousands of prison places (part of the drive to cut Britain’s budget deficit).

    Such moves seem to chime with early public-opinion polls. YouGov, a pollster, found majorities for stripping welfare benefits from rioters, and for jailing looters, arsonists and those found guilty of violent disorder for several years. The newspapers and streets are full of voices declaring that family structures have fallen apart, and that society has been shattered by shifts in the labour market that have left England with an underclass knowing nothing of the world of work.

    It is not hard to sniff the makings of an English panic. Popular responses to the 2011 riots—hefty jail terms, evictions and curfews—are all, deep down, ways of wishing scary people far away.

    A classic text of English criminology, Geoffrey Pearson’s 1983 work “Hooligan: A History of Respectable Fears”, lovingly traces repeating cycles of alarm about unprecedented crime rates and uniquely dreadful young people all the way back to the 16th century. The peak of transportation coincided with a panic brought on by the Industrial Revolution, which was held to have destroyed family structures (working mothers caused much alarm) and shattered traditional values. In 1843, at a time when about one in five of all convicted prisoners was being shipped to Australia, the House of Commons heard that the “morals of children are tenfold worse than formerly”, while parents in Nottingham were frankly “vicious”.

    No wishing the wicked away

    Yet even then, English reformers were buoyed by the inescapable reality that cities were thronged with both respectable folk and what were termed the “dangerous classes”. Proximity meant that questions of rehabilitation could not be avoided for ever.

    Now, once again, politicians are appealing to the desire to expel and remove bad elements from society. That impulse lurks in the English urban character, but so does pragmatism. With luck, pragmatism will win.

    Today’s urban English mostly seem to like living in their jumbled-up neighbourhoods. They do not wish to live in strictly segregated cities or nervous, gated suburbs. That should strengthen the hands of those urging rehabilitation over retribution. Even the most hawkish know the jailed will be out in time.

    There are other reasons for hope. When England erupted in weeks of violence in 1981, the riots in Brixton, Moss Side and Toxteth left the country in a toxic stew of racial tension and mutual incomprehension. Newspapers of the day inveighed, nastily, against what one called an “unnecessarily imported” crisis of “ethnic criminality”. In riot-torn districts, the police were widely hated. This time round, the mood in neighbourhoods recovering from looting involves relief as well as anger, and a strong desire to fix things. Racial tensions are lower. Nationwide, there is fretting about weak police tactics, which initially left looters feeling they could rampage with impunity. But it is easier to make the police a bit tougher than to persuade citizens not to loathe them.

    The English have given themselves a shock. They must now set to work making their society better. They have no choice.

  • A campaign message follows

    A brief, bashful request for votes

    Aug 18th 2011, 15:02 by Bagehot

    WITH my usual efficiency, I have just learned that it is voting time for the annual Total Politics Blog Awards, covering British political blog sites. Even more efficiently, I have learned this about 24 hours before voting closes at midnight on Friday 19th.

    I cannot think of a subtle way to put this, so I will just ask. It would be terribly nice if any of you felt like voting for this blog to go to this voting survey here (the rules require each voter to choose five separate bloggers or blog sites, by the way, or your choices will not count).

    I ask not least because I am too bashful (or is it proud?) to vote for myself, so without your help, I could yet poll zero votes.

  • Civil disorder and looting hits Britain

    We have been here before

    Aug 16th 2011, 17:56 by Bagehot

    THERE have been some sweeping historical claims made in the wake of last week's unrest, with commentators of left and right decrying an unprecedented collapse in moral standards, parenting and discipline among the young. There have been cultural claims too, with calls to blame African-American rap music from broadcast.

    Here is the Daily Mail's Melanie Phillips, giving it both barrels with her assertion that:

    The violent anarchy that has taken hold of British cities is the all-too-predictable outcome of a three-decade liberal experiment which tore up virtually every basic social value.

    The married two-parent family, educational meritocracy, punishment of criminals, national identity, enforcement of the drugs laws and many more fundamental conventions were all smashed by a liberal intelligentsia hell-bent on a revolutionary transformation of society.

    Those of us who warned over the years that they were playing with fire were sneered at and smeared as Right-wing nutters who wanted to turn the clock back to some mythical golden age.

    From the left, here is the Daily Mirror's Paul Routledge, attacking foreign music and British materialism:

    The mayhem erupted overnight, but it has been building for years. And putting more police on the streets – while vital to end the threat to life and property – will not solve the crisis.

    I blame the pernicious culture of hatred around rap music, which glorifies violence and loathing of authority (especially the police but including parents), exalts trashy materialism and raves about drugs.

    The important things in life are the latest smart phone, fashionable trainers and jeans and idiot computer games. No wonder stores selling them were priority looting targets.

    On the BBC, there was the bizarre and clunking intervention by David Starkey, the historian of Tudor England, who complained on Newsnight that working class young whites had "become black", or as he put it:

    The whites have become black. A particular sort of violent, destructive, nihilistic gangster culture has become the fashion... Black and white, boy and girl operate in this language together. This language, which is wholly false, which is this Jamaican patois that has intruded in England. This is why so many of us have this sense of literally a foreign country.

    Allison Pearson blames frightened, cowed and unhelpful parents in the Daily Telegraph, writing:

    How did we end up with some of the most indisciplined and frighteningly moronic youngsters in Europe? How come our kids are the best at being bad? There’s no use blaming the police; it’s the parents, stupid...A friend who works in an inner-London comprehensive with boys twice her size is not allowed to send them to the headmaster. Faced with full-frontal rudeness or casual violence, Clare must first follow school policy and ask, “Darren, are you ready to receive the discipline message?” ...During my childhood in the Sixties, teachers and parents were still on the same side; today, you would be a fool to take that coalition of adults for granted. Darren’s parents are likely to attend any conference on their son’s behaviour with a snarling attitude, and maybe a pitbull to match

    These are bold claims, amounting to a thesis that Britain has been wrecked and transformed from a familiar, law-abiding spot to an alien hell hole in just three or four decades. But here is an odd thing, surely: go back precisely three decades and you get to the summer of 1981, scene of some of the nastiest riots in modern British history, when racially charged violence saw tracts of Brixton in south London and Toxteth in Liverpool burn for days.

    Seeking guidance, Bagehot decided to go off-line and read some books. From the shelves of the London Library, a gem: "Hooligan: A History of Respectable Fears" a calm and witty history of moral panics that have gripped England over the ages, published in 1982, and written by a Bradford University academic, Geoffrey Pearson (later at Goldsmiths). The book is out of print, so I trust I will be forgiven (not least by Professor Pearson) for quoting from it at length: it is a brilliant survey.

    Just what happens if we take a time machine back three decades, to the time before the revolutionary transformation identified by Melanie Phillips?

    Well, "Hooligan" records, you find front-page editorials like this one from the Daily Express of July 7th 1981, stating:

    Over the past twenty years or so, there has been a revulsion from authority and discipline... There has been a permissive revolution... and now we all reap the whirlwind

    You find editorials and columnists seeming to blame the decline on black immigration. Here is the Sunday Telegraph of November 29th 1981:

    Brixton is the iceberg tip of a crisis of ethnic criminality which is not Britain's fault—except in the sense that her rulers quite unnecessarily imported it

    Thanks to Professor Pearson's painstaking researches, the time machine can be ridden smoothly much further. At each stop, there are voices warning that the golden age of the past has been wrecked, and suddenly Britain is a dreadful place.

    Here is Sir Keith Joseph, the Conservative politician, in 1974, declaring:

    For the first time in a century and a half, since the great Tory reformer Robert Peel set up the Metropolitan police, areas of our cities are becoming unsafe for peaceful citizens by night, and some even by day

    "Hooligan" compares the 1958 and 1978 Conservative Party annual conferences. In 1978, buffetted by calls from the floor for a return to the birch and "Saturday night floggings" for football hooligans, it notes, the future home secretary William Whitelaw pledged a new regime of short-sharp-shock Detention Centres modelled on army discipline.

    And in 1958? The agenda included a debate on a "disturbing increase in criminal offences", and speakers asserting that "our wives and mothers, if they are left alone in the house at night, are frightened to open their doors", and that "over the past 25 years we in this country, through misguided sentiment, have cast aside the word "discipline", and now we are suffering from it". Delegates fumed over the "leniency" of modern courts and the way that young people were "no longer frightened of the police". Over calls from the floor for a return to flogging, the home secretary R A Butler pledged a programme of building short-sharp-shock Detention Centres, wherein "there should be a maximum of hard work and a minimum of amusement."

    Still, no African-American rap music to corrupt the young, at least. Alas, "Hooligan" notes, the country was in the grip of a moral panic about rock and roll. In a 1956 front page editorial, headlined "Rock 'n Roll Babies" the Daily Mail declared:

    It is deplorable. It is tribal. And it is from America. It follows rag-time, blues, dixie, jazz, hot cha-cha and the boogie-woogie, which surely originated in the jungle. We sometimes wonder whether this is the negro's revenge.

    What of parents, surely free to smack and belt their way to discipline in those days?

    Not according to the Recorder of Bradford, Frank Beverley, recorded in his law court in 1951 inveighing on the crimes that could be traced to poor parenting:

    Parents at this time, unfortunately, do not take sufficient care in bringing up their children. They expect someone else to be responsible.

    Back to 1932, and a guide to the work of boys' clubs lamented:

    The passing of parental authority, defiance of pre-war conventions, the absence of restraint, the wildness of extremes, the confusion of unrelated liberties, the wholesale drift away from churches

    Thanks, again, to Geoffrey Pearson's research, here is the Times of 1898, sorrowing that fathers no longer saw fit to save a "scapegrace" son from prison "by loyally and sounding whipping him," and quoting a horrified magistrate's view that:

    it is melancholy to find that some parents are not ashamed to confess that children of seven or eight years old are entirely beyond their control

    Still, at least no computer games, eh? Alas, here is M.G. Barnett, author of "Young Delinquents" (Methuen, 1913) warning readers that silent films present children with "a direct incentive to crime, demonstrating, for instance, how a theft could be perpetrated". Small wonder that the Times of the same year editorialised:

    All who care for the moral well-being and education of the child will set their faces like flint against this new form of excitement

    Back to 1900, and the Contemporary Review is fretting about how the "garbage" infecting music hall programmes "glorifies immorality", while in his 1905 work "Manchester Boys", Charles Russell draws a direct link between murders enacted on stage and later "instances of violence on the part of young men, in the back streets of the city."

    August has often been a tricky month. There was a moral panic in August 1898, after Bank Holiday disorder that saw 200 involved in a fist-fight in the Old Kent Road, and 88 people hauled before the Marylebone court in a single day. Matters were not helped when, in October 1898, a street mob attacked police officers dealing with a domestic dispute. There were loud cries of "Boot them" as the constables were kicked and assaulted.

    In 1883, London police were armed for the first time amid fears of a crimewave by armed burglars, a step seen as "un-English" by the press.

    The great "garotting" panic of 1862 centred on lurid reports of a new form of mugging involving strangulation, and led to the restoration of flogging as a punishment, shortly after it had been abolished. The Times sadly concluded that England now resembled a foreign land:

    Our streets are actually not as safe as they were in the days of our grandfathers. We have slipped back to a state of affairs that would be intolerable even in Naples

    Back to 1840s and the Industrial Revolution. Professor Pearson meticulously notes the widespread moral panic about the collapse of ancient, rural moral codes in the face of rapid urbanisation, the rise of working mothers and the spread of child labour (feared because it put money in the pockets of impressionable youths). "Hooligan" records an 1842 House of Commons debate, which heard how the "morals of children are tenfold worse than formerly".

    Still, at least no Jamaican patois, eh? Ah no, the same Commons debate saw an MP denouncing parts of the country suffering a "preposterous epidemic of a hybrid negro song".

    In London, 1815 sees the foundation of the Society for Investigating the Causes of the Alarming Increase in Juvenile Delinquency in the Metropolis. 1751 sees Henry Fielding's "Enquiry into the Causes of the Late Increase of Robbers" (Fielding fingered "too frequent and expensive diversions among the lower kind of people"). The seventeenth century saw moral panics about violent and rowdy apprentices, as well as about organised fighting among gangs (wearing coloured ribbons to identify their troops). Professor Pearson ends with the sixteenth century and puritan fears about, if not gangsta rap, popular songs that treated criminals as heroes.

    Now, none of this is much comfort if you live in one of the areas of England that has just been looted or burned. None of this takes away from the fact that this country has some serious social problems involving young people and children: Britain tops European league tables for teenage pregnancy, and has dropped down international rankings for educational achievement.

    But for all its wit, "Hooligan"—written at a time of really horrible racial tension in Britain—had a serious purpose: to urge readers in 1982 to avoid moral panic and a rush to historically-illiterate judgement. Its lessons hold just as true today.

  • Civil disorder and looting hits Britain

    Britain's August riots

    Aug 15th 2011, 21:11 by Bagehot

    RETURNING to Britain at the weekend from holidays in France, Bagehot had a sobering drive from Dover up into London, past boarded-up shops and restaurants and van after parked van of police officers with unfamiliar cap badges and uniforms: officers on secondment from Hampshire, Wiltshire and beyond, helping to bring calm to the capital by sheer weight of manpower. Much has been written and said already by commentators and politicians of the left, right and centre. Keeping in touch with the news from home by Blackberry, I saw the disorder and looting variously blamed on gangs, bad parenting, rap music, computer games, consumerism, moral breakdown, softy police chiefs, coalition cuts, unemployment, racism, anti-racism and the bad examples set by bankers and expense-fiddling MPs. I read an article comparing London to Mogadishu (by a correspondent for Der Spiegel), and asserting that terrified residents were fleeing for the continent by Eurostar.

    Is there anything left to say? Well, returning home a week after the trouble broke out, a bit of distance perhaps offers the first hopes of a filtering process. Some early predictions and claims appear more plausible than others.

    Here are some tentative early thoughts.

    • There is no single explanation for the trouble, but of all the many claims and counter-claims being made last week, some of the most plausible involve inner-city gangs, and the degree to which mainstream society has been complacent about their rise and evolution in recent years.

    There has been an almost shaming amount of convincing testimony from local politicians, think-tank analysts and youth workers. There was no mystery about the rise of gangs in the inner-cities, nor about the ways that such gangs were evolving, coming to be based around geographical areas rather than strictly segregated ethnic groups and recruiting ever-younger children as members. It was just that we in the mainstream media were not always paying much attention: perhaps because most violence involving gangs rarely strayed into the neighbourhoods inhabited by middle-class, white, metropolitan journalists like me. Speaking to the head of a south London charity that works with gangs today, he told me of all the political party leaders and ministers who had sought out his views this week. None of this should have been news to anyone in authority, he said: the warnings have been out there, and patient, painstaking projects and strategies for trying to curb the influence of gangs have been in development on the ground for years.

    • If gangs were at the heart of early looting and criminality, the spread of the trouble involved a large dose of opportunism and copy-cat behaviour by alarmingly unthinking onlookers.

    In essence, Britain learned (or re-learned) that when a chunk of the population think they can break the law with impunity, grabbing consumer baubles for themselves, enjoying the power that comes with causing fear or the sheer excitement of destruction, they will give in to that temptation, stopping only when the costs of law-breaking rise.

    Evidence that this was an opportunistic outbreak of thuggery and stupidity comes from the way that the violence stopped so suddenly when 10,000 extra police were drafted onto the streets of London and arrests of looters began in earnest, many of them based on evidence from CCTV footage. Evidence that this involved copy-cat behaviour is that though the big change in policing happened in London, the trouble stopped around the country at the same time.

    • Reports from England's magistrate courts, which have been sitting round the clock to process hundreds of alleged looters, have not offered much backing for the claims by some commentators of the right and left that this was violence born out of a sense of nationwide moral drift stretching right up to the top of society, and anger towards City bankers or expense-fiddling MPs. Instead, a bleaker sense emerges of an underclass whose members are certainly angry and willing to justify theft by some sort of resentment towards the rich, but who think the "rich" are local corner shopkeepers, or the faceless owners of their local sports shoe store. Smashing the "rich" just meant attacking anyone with something that they did not have, and wanted.

    • Constituency MPs have come out of the crisis rather well. MPs from all three parties have been all over the airwaves talking about their own findings from the streets of their own constituencies, and their own discussions with local police commanders. Not every MP's explanations and theories have been as convincing as every other, but what has come across is that these are people who actually know and care about the communities that they represent. Try this calm, grown-up discussion on BBC Radio 4, for example, as three MPs talk about the riots with real knowledge and largely without political point-scoring.

    • National political leaders have come out of this less well, so far. David Cameron, the prime minister, and Ed Miliband, the Labour leader, gave competing speeches today about the unrest.

    It was not Mr Cameron's best effort. He told an audience in his own (genteel and un-looted) constituency of Witney that he had been been talking about moral decay for years, and vowed that after last week's "wake-up call", was reviewing every policy of his government to ensure that it addressed the crying need to reverse years of "slow-motion moral collapse".

    In his words:

    from here on I want a family test applied to all domestic policy.

    If it hurts families, if it undermines commitment, if it tramples over the values that keeps people together, or stops families from being together, then we shouldn’t do it.

    To be fair, Mr Cameron has been saying thoughtful things about youth crime and family breakdown for years. But his speech of today was longer on soundbites than reflection. He stated flatly that the trouble was "not about poverty" and "not about race" and were instead "about behaviour". As he knows and said eloquently as an opposition politician, the choice between circumstances and behaviour is a false one: criminal acts, like all human acts, have a context, even if that context may only help explain them, and not excuse them.

    His talk of a hasty review may have prompted some voters to a cruder question: after a year in office, should he not already know whether his government's policies were likely to help or harm British families?

    Ed Miliband accused Mr Cameron of offering "gimmicks". That is unfair: plans to reform schools and the welfare and benefits system have been at the heart of the coalition's programme from the start, and are directly aimed at fixing social problems. But not wholly unfair. Mr Cameron threw some pretty unconvincing red meat to his party's Right today, saying:

    As we consider these questions of attitude and behaviour, the signals that government sends, and the incentives it creates…

    …we inevitably come to the question of the Human Rights Act and the culture associated with it.

    Let me be clear: in this country we are proud to stand up for human rights, at home and abroad.  It is part of the British tradition.

    But what is alien to our tradition – and now exerting such a corrosive influence on behaviour and morality…

    …is the twisting and misrepresenting of human rights in a way that has undermined personal responsibility.

    We are attacking this problem from both sides.

    We’re working to develop a way through the morass by looking at creating our own British Bill of Rights.

    And we will be using our current chairmanship of the Council of Europe to seek agreement to important operational changes to the European Convention on Human Rights.

    But this is all frustratingly slow.

    The truth is, the interpretation of human rights legislation has exerted a chilling effect on public sector organisations, leading them to act in ways that fly in the face of common sense, offend our sense of right and wrong, and undermine responsibility.

    It is exactly the same with health and safety – where regulations have often been twisted out of all recognition into a culture where the words ‘health and safety’ are lazily trotted out to justify all sorts of actions and regulations that damage our social fabric.

    So I want to make something very clear: I get it.  This stuff matters.

    I have no doubt the prime minister is sincere. But as a rule, politicians confident that they can actually change something tend to avoid phrases like: "We’re working to develop a way through the morass by looking at..."

    Mr Cameron also has a bigger, short-term headache, I suspect. The public wants to be told that the frightening, shocking events of the last few days will not happen again. In response the prime minister is essentially offering voters tough rhetoric wrapped around the same Big Society policies that have struggled to gain much traction with public opinion. And on the specific question of policing, he is offering voters a complicated message. Mr Cameron says that the coalition will stick to its plans to cut the police budget as part of its overall fight to reduce the budget deficit, but this should not reduce police effectiveness because (though police officers and trade unions and the Labour Party all say the cuts will lead to lower numbers of officers) in reality current police spending is wasteful and too many officers spend time filling out forms. At the same time, Mr Cameron is sticking to his party's plans for elected police and crime commissioners to make the police more accountable.

    The headache is this: even if Mr Cameron is right that the police are one of the last unreformed public services, lots of voters who do not pay close attention to justice policy saw really frightening things happening last week on English streets, then saw them stop when thousands of extra policemen were poured onto those streets. Such voters would be very happy if Mr Cameron said something much simpler: that he was reversing cuts to the police budget, and would be sending lots of extra officers to patrol their neighbourhoods (and indeed ideally stand outside their front doors).

    Mr Miliband and the Labour Party are duly milking the police numbers question for all they can, as any opposition would do. So is Boris Johnson, the Conservative mayor of London, who needs to get re-elected next year, in a city that is not naturally pro-Tory. This is tricky territory for Mr Cameron.

    • A final thought on less plausible lines of commentary.

    To stop the riots happening again, the government now faces calls to try roughly three things: (a) convert potential looters and try to make them better people through such means as better schooling or ambitious schemes to lure young people away from gangs, (b) deter them from wicked behaviour with more ferocious policing, and (c) physically keep them from mischief by locking them up.

    On the left and right, there has been talk of (a). On the right, any number of politicians and columnists have explicitly called for (b) and (c) in the form of much tougher policing, so that potential looters are "frightened" by the police, and for the government to ditch plans to shrink the prison population. This is a complicated business, and I will return to it again. But to end this quick round-up, I would offer a couple of last observations.

    Trying (a) is hard, and may not stop the riots happening again. But it was a good idea before last week's horrors, and is a good idea now.

    As for (b) criminals should fear that they will be caught and face consequences if they break the law, but that is a very different thing from making them frightened of the police. I have worked and reported from countries with much more frightening police forces than any likely to be found in Britain, even under the flintiest Tory government, and fear of the police in and of itself does not reduce crime. You can escalate police toughness as far as you like: arm officers to the teeth, let them use electric shock batons to torture confessions out of prisoners, even turn a blind eye to extra-judicial killings by police death squads. All this goes on in sundry corners of the world, and co-exists with high crime and violent criminals in such places. It is a dead end. By all means reform British policing where it is ineffective. But you cannot win an arms race of force or fear with criminals, even if trying offers some emotional comfort to a public alarmed by crime.

    As for (c), using prison to warehouse criminals out of action has also been tried: just look at America. There is strong public support in early opinion polls for lots and lots of locking people up in prison. But I worry that what the public really wants is for the scary and depressing people who emerged to loot and wreck last week to vanish. If transportation were still on offer, that might be a popular policy too. But as it is, those locked up will come back out. There are no easy fixes.

  • British newspapers and the phone-hacking scandal

    My plan to fix the press

    Jul 25th 2011, 20:27 by Bagehot

    THIS week's print column looks at the puzzle of better press regulation, and offers a tentative solution. It will be my last column until mid-August, and this blog will also be taking a summer break. Readers from Brussels days may remember the drill: if you are an Economist subscriber, I am up a French Alp (and thank you). If you are a burglar, I am at home training my new Rottweiler, Fang.

    Here is the column:

    BRITAIN needs a new approach to press regulation. The goal seems straightforward enough: newspapers that remain robustly (indeed raucously) free, which are less flamboyantly horrible, and yet make enough money to survive.

    On July 20th David Cameron unveiled a band of worthies, led by a judge, and gave them a year to outline new rules for the press (among other tasks). Signalling an end to pure self-regulation, Mr Cameron talks of a watchdog that is “effectively independent” from government. He has hinted that a model might be found in the Advertising Standards Authority (ASA), an industry-funded body that mostly uses peer pressure to police advertising, but can call on legal “backstops”—official regulators with the power to punish stubborn offenders. The leader of the Labour opposition, Ed Miliband, talks of an “independent” watchdog that—unlike the current Press Complaints Commission (PCC)—does not include serving editors in its ranks. He wants it to wield investigative powers and the right to make titles pay compensation and run corrections prominently.

    It all sounds sensible, but there is a complication. No part of this three-way puzzle—creating a press that is free, less nasty and sustainable—can be solved in isolation. Just consider what the past few weeks say about British newspapers.

    In one sense, the phone-hacking crisis offers encouraging news. When other checks and balances (the police, governments, Parliament) failed, it was the serious press—led by the Guardian—that exposed alleged criminality at the News of the World. That should give pause to politicians with daft ideas, such as the former Labour leader, Lord Kinnock, who called for a charter compelling newspapers to be politically impartial, like broadcasters.

    But the same story could also carry less cheering headlines. The scandal has been a triumph for the bit of the industry that makes no money: the Guardian recently announced annual cash losses of £33m ($53m) and is about to sack lots of staff. It has been a disaster for the bit that makes money. Before Rupert Murdoch’s News Corporation euthanised the News of the World for being overly vile, the Sunday tabloid and its daily sister, the Sun, posted decent profits (subsidising two loss-making Murdoch broadsheets, the Times and Sunday Times, in the process).

    Equally, it is encouraging that (albeit very late in the day) criminal acts by the press brought serious consequences: arrests, resignations and the sight of Mr Murdoch and his son hauled before a committee of the House of Commons. Logically, that would seem to suggest that the priority should be doing what it takes to ensure lawbreaking is tackled, and is not ignored. Politicians have duly proposed ways to rein in press groups with the power to cow those paid to watch over them.

    Mr Cameron promises less cosiness with media bigwigs, and more openness about meetings granted to them. (Unless it is the other way round: asked by MPs about his frequent meetings with prime ministers, Mr Murdoch growled: “I wish they’d leave me alone”.) As for Mr Miliband, he wants Mr Murdoch’s empire dismantled—though he has not explained who might buy its broadsheets, which lose the thick end of a million pounds a week.

    Alas, tackling lawbreaking does not, on its own, fix Britain’s feral press. Many routine acts of press cruelty—shouting through a widow’s letterbox, paparazzi making the children of a celebrity adulterer cry—are legal.

    Jack Straw, a former Labour justice secretary, suggested this month that the knottiest aspect of press regulation involves not lies but private things that are true. He wants a new civil wrong of infringement of privacy, to match rules on defamation. More controversially, Mr Straw told the Commons that any new controls would have to be imposed by statute. He noted that, earlier this year, Express Newspapers (publisher of the Daily Express and Daily Star) simply walked out of the voluntary PCC. “Very wise words,” the prime minister told Mr Straw in reply.

    You going to make me?

    In short, politicians seem minded to compel newspapers to sign up to a new press code. Yet there is cross-party consensus that an Ofpress, licensing journalists or imposing impartiality, would be a step too far. Alas, if Mr Cameron and colleagues think the ASA model offers a happy halfway house between compulsion and self-regulation, they may not be right. Guy Parker, the ASA’s chief executive, says most companies comply with rulings because they don’t want bad publicity. But with some rogues it is “vital” to have a “stick in the cupboard”. He means referral to the Office of Fair Trading, whose powers come from consumer-protection law, or, in the case of broadcasters, to Ofcom, a regulator with the doomsday power to suspend operating licences.

    Nor is it clear how a compulsory press code would cover bloggers in pyjamas or gossips with a Twitter feed. These days reporters cannot be corralled with sanctions such as withholding press cards or access to press rooms.

    Bagehot has a grand bargain to suggest. Give Mr Straw his civil wrong of infringing privacy. Then create a tougher but still non-statutory regulator. This would be a mediator offering succour to those being brutalised by the press. If mediation failed, its teeth would come from an array of clever sanctions, designed to hurt, and from the knowledge that the courts were the next stop. Access to mediation would give even pretty horrible newspapers, such as the Daily Express, an incentive to sign up.

    In return, the press should be offered a much stronger public-interest defence, fixing a big defect in English libel law and boosting genuinely investigative and campaigning reporting. Some newspapers will cavil, arguing that without sensation and intrusion they cannot survive. Tough. The alternatives are worse.

  • Britain and the EU

    Britain changes its mind about a two-speed Europe

    Jul 21st 2011, 11:59 by Bagehot

    GEORGE Osborne, the chancellor of the exchequer, has given a very important interview to the Financial Times this morning. In essence, Mr Osborne has confirmed out loud what has been visible in the shadows of policy-making for some time: Britain has reversed its previous position on the development of a two-speed Europe, with Britain in an outer circle, and an inner core of countries that use the single currency choosing much deeper fiscal integration.

    Thanks to a great scoop by George Parker of the FT, it is clear the government now believes the following: (a) a big leap towards fiscal union is the only way of saving the single currency, (b) Britain has a strong interest in the survival of the single currency, (c) Britain must play no part in bailing out the single currency and will stand aloof from fiscal integration, thus (d) our national interest now lies in allowing Europe to divide into markedly different zones of integration, with us on the outside.

    That prospect used to enthuse hardline Eurosceptics. It has always alarmed those (like Bagehot) who believe that on balance Britain benefits more than it loses from full membership of the European Union, thanks to the internal market and other (imperfect) spurs to free trade and free movement, but who worry that the single market will only survive if Britain is there with allies (such as the Nordic countries or the Dutch and some eastern Europeans) pulling as hard as possible on the liberal end of the rope to balance the corporatist, protectionist countries tugging on the other end.

    Now, however, as could be predicted and was predicted (for example in this March 2011 column) the British government's strategy of standing back from the euro zone crisis, arms folded, has combined with the forces spinning the euro zone towards deeper integration to create a really powerful centripetal effect.

    Here is the heart of the Osborne interview:

    George Osborne says the “remorseless logic” of monetary union takes the single currency members in the direction of greater fiscal union, even if that did not necessarily mean having a single European budget or a single EU finance minister.

    “I think we have to accept that greater eurozone integration is necessary to make the single currency work and that is very much in our national interest,” he says. “We should be prepared to let that happen.”

    Mr Osborne admits this flies in the face of traditional British policy, which has always suspected such a union as being the precursor of an elite group of EU members, which would ultimately dictate policy to those on the outside.

    The chancellor seems more relaxed about that possibility, but insists that key decisions must still be taken at the level of all 27 member states, not least on matters affecting the single market.

    At this point, Bagehot should put his hand up and offer an admission. For all my longstanding doubts about the wisdom of a two-speed Europe, I do not think Mr Osborne and the British government have much choice in this matter.

    The FT quotes a "government official" saying that Germany simply has to step up to the plate and sort out the euro (ie, Angela Merkel has to tell her voters that they now own Greece's debts, like it or not), with the line: "the euro was their idea—they should sort it out."

    Among Tory MPs and voters, you can take that sentiment and triple it, and you still don't get close to the level of hostility any British minister would face if he tried suggesting that Britain should start bailing out the euro zone alongside Germany, France and the rest. British euroscepticism has combined with recessionary politics to produce a mood so toxic that some Tory MPs can be heard questioning why Britain even belongs to the International Monetary Fund (memo to the nativists: we are an island off the shore of Europe with our own mid-sized currency and a gigantic financial sector).

    So am I now in the camp of long-standing Eurosceptics cheering with joy that this crisis represents a golden opportunity for Britain?

    No. I think that second-class membership is now a probable outcome of this crisis, and is probably the least bad outcome we can hope for. But it will be much less fun than the eurosceptics think.

    Daniel Hannan, a prominent Tory MEP and long-time advocate of leaving the EU, writes in today's Daily Telegraph:

    While some British banks are vulnerable to sovereign defaults in Europe (just as Brazilian, Canadian and Taiwanese banks are), there is no need for our taxpayers to prop up a currency that we declined to join. More than this, we ought to establish ourselves as a haven for those fleeing the uncertainty of the euro – a position which, despite our advantages of size, geography, language and global commerce, we currently cede to the Swiss.

    We need to withdraw from EU regulations that inhibit our recovery: burdensome employment laws, rules on mutual access to social security which inhibit welfare reform, the Common Agricultural Policy, the 48-hour week. We should, in short, aim for a form of associate membership, an amplified free trade deal as enjoyed by Norway and Switzerland. And we should make our agreement to the legal changes which the eurozone leaders want contingent on securing such a deal

    This idea of Britain as a new Switzerland is a false prospectus, as it has always been. It amounts to a promise that Britain will be allowed to play free-rider on the outer shores of Europe, while less wealthy single currency members like Slovakia and Estonia pay into a euro-zone pot to bail out (among others) big British banks. It further dangles the prospect of an associate membership that would allow Britain to ditch EU labour market rules and other corporatist annoyances, and still export its goods, tariff-free, into the EU proper.

    Why does anyone imagine that the euro-zone countries, who face doling out vast amounts of taxpayers' money to poorer southern fringes of the continent, would give Britain such a good deal? Eurosceptics talk of our trade deficit with the rest of Europe, and deduce from that that the EU needs us more than we need them. Well, Rhode Island runs a trade deficit with the other 49 states, but that does not allow the good people of Providence to dictate trade terms to Washington DC. The balance of power depends on the relative scale as well as the direction of trade flows.

    Switzerland is much-disliked in Brussels, Paris and Berlin, and much ganged-up on. Ask the Swiss about their negotiations with the EU about bank secrecy and withholding taxes on savings accounts, and check how enjoyable those were. Ask the Swiss about the screeds of regulations written in Brussels that they have to adopt without any say. Ask the Swiss about the big sums they have to pay into the EU budget, including a special levy to help fund eastern enlargement. Ask the Swiss about the way that the EU refuses to negotiate on any individual policies, but insists that Swiss-EU relations should be on a take-it-all-or-leave-it basis.

    The EU has always been a balancing act. It is a messy grand bargain between a liberal, free trading project (the bit we like) and something very different: a dream of regional chauvinism, protectionism and corporatism, underpinned by intra-EU redistribution. British membership has always involved constant tussling with countries (such as France) which traditionally placed their faith in national champions, tariff barriers and industrial policies, and which have now transferred such dreams to the European level, having concluded (with regret) that protectionism no longer works at the level of individual states.

    Such countries already deeply resent Britain for the opt-outs it already has from corners of European social legislation. Mr Hannan knows Brussels and the European Parliament much too well to believe, deep down, that if we left to become a new Switzerland, they would stand by idly and let us secure fantastic competitive advantages, while still sending British-made Nissans and Toyotas into the single market, tariff-free. We would be resented, and we would be made to pay.

    Does this mean that I think Mr Osborne is wrong in his assessment that Britain must accept a new status in the future Europe? No.

    But I do not think it will be a happy opportunity for Britain, either, as Mr Hannan and his ilk pretend. Europe was always a mixture of good and bad ideas, of liberalism and openness and darker, more nativist forces. The forces of liberalism are in retreat, this will not end well.

  • The British press and the phone-hacking scandal

    Rupert and James Murdoch before Parliament

    Jul 19th 2011, 21:44 by Bagehot

    "THIS is the most humble day of my life," Rupert Murdoch told members of the House of Commons, after the media, culture and sports select committee summoned the global media tycoon before them to explain the phone-hacking, police-bribing, politician-bullying ways of his British press titles. Having established his humility, Mr Murdoch then spent more than two hours telling the MPs that he was—in essence—much too important and busy to have known what his feckless underlings were up to.

    Mr Murdoch repeatedly stressed how ashamed and sorry he was that his Sunday tabloid, the News of the World had snooped on the voicemails of a mobile phone belonging to Milly Dowler, a 13-year-old schoolgirl whose abduction and murder became front-page news in 2002. He talked of his father, a great reporter, bequeathing him his first newspaper with instructions to use it for good purposes. At times, especially when struggling to hear questions, he looked all of his 80 years. But again and again his defence rested on the idea that he was simply too grand to know about the ethical lapses in one of his newsrooms. That is probably a shrewd legal strategy, but it is unlikely to help Mr Murdoch much in the court of British public opinion.

    It was gripping human theatre, despite the best efforts of many of the assembled committee members to blow their big confrontation, asking open-ended or irrelevant questions (my prize for worst question goes to the MP who asked what sort of coaching the Murdochs had had before their parliamentary appearance).

    Some have written that Rupert Murdoch came across as a frail, diminished figure, comparing his appearance to the final moments of the Wizard of Oz. I disagree. Thumping the table with the palm of his hand for emphasis (despite nervous signals from his wife to stop) Mr Murdoch showed flashes of something I can only describe as raw power, notably when any MP seemed about to patronise him.

    Thus when an MP suggested employees had kept Mr Murdoch in the dark about the phone-hacking scandal, Mr Murdoch came to life, growling:

    Nobody kept me in the dark, I may have been lax in not asking, but [the News of the World] was such a tiny part of our business.

    The tabloid represented less than 1% of his company, he explained. He employed 53,000 people round the world. At his side, his son, James Murdoch, took the same line, arguing that at one point a six figure pay-off to a victim of phone-hacking had been too small to need the approval of his father, "as chairman and chief executive of a global company."

    If they make a movie of the scene, perhaps Jack Nicholson could capture the glowering menace and dark comedy of some of the older Mr Murdoch's lines, but few others. Asked by an MP, primly, if he had frequent meetings with British prime ministers, Mr Murdoch replied, with the faintest hint of a smile: "I wish they'd leave me alone."

    Another moment of telling cynicism about the wickedness of the world was provoked when a Scottish Labour MP asked if he regretted the high cost to his company of the phone-hacking scandal. The MP referred to the way Mr Murdoch's global company News Corporation was forced to abandon a bid to increase its stake in BSkyB, a highly profitable satellite television network, from 39% to 100%, by the threat of a parliamentary vote against the takeover.

    At this mention of a deal worth hundreds of millions of pounds, Mr Murdoch's mood of contrition seemed to fade a bit. A lot of people had different agendas in building "hysteria" around the deal, he said, with a sort of resigned, weary disgust: "They caught us with dirty hands and they built this hysteria around it."

    Just for a moment, I wondered if we were watching the echt Rupert Murdoch. Then James Murdoch (smart suit, soft American accent, a lawyerly manner—Tom Cruise to his father's Jack Nicholson) quickly jumped in, assuring the MP that his firm had been "very clear" that "very serious allegations" had been levelled at the News of the World and this was a matter of "huge and sincere regret". The moment passed, and we were back to smooth denials of knowledge of wrongdoing, and assurances of full co-operation with future investigations.

    A few MPs asked good questions. The surprise star was a Conservative newcomer elected in 2010, Louise Mensch, also known as Louise Bagshawe (the author of breathless "chick-lit" novels). I confess I have not been that impressed by what I had seen of Mrs Mensch previously. But after her waffling, pompous colleagues it was a relief today as she asked sharp, precise, coolly scornful questions. She asked about pay-offs backed with confidentiality clauses, about when precisely the Murdochs had known that phone-hacking involved victims of crime like Milly Dowler, and about whether, given the enormous reputational damage being done to News Corp, it might be time for James Murdoch to read through all the emails from an archive appearing to show rampant law-breaking among some employees, rather than referring to a sample he had seen. James Murdoch was left stammering by that one.

    Her last question elicited the best answer of the day from Rupert Murdoch.

    Mrs Mensch, looking and sounding like a clever young prosecution barrister, reminded Mr Murdoch that he had said Les Hinton, a former chief executive of News International (News Corp's British newspaper subsidiary), had resigned because he was the "captain of the ship" when wrongdoing took place. Is it not the case, sir, that you are the captain of the ship, she asked the elder Mr Murdoch? The magnate's pride seemed piqued, and he rose to the bait. "Of a much bigger ship," he rumbled.

    Mrs Mensch did not blench. "It is a much bigger ship, but you are in charge of it. And as you said in earlier questions, you do not regard yourself as a hands-off chief executive, you work ten to 12 hours a day. This terrible thing happened on your watch. Mr Murdoch, have you considered resigning?"

    "No," said Mr Murdoch.

    "Why not?" said Mrs Mensch.

    "Because," Mr Murdoch replied. "I feel that people I trusted, I'm not saying who, I don't know what level, have let me down. I think they behaved disgracefully and betrayed the company, and me. It's for them to pay. I think that, frankly, I'm the best person to clear this up."

    For them to pay. That phrase pretty much summed up the whole session. It will not have done the Murdoch family many favours.

  • The British press and the phone hacking scandal

    Lord Kinnock accidentally clarifies the future of press regulation (and of media ownership)

    Jul 19th 2011, 11:45 by Bagehot

    LISTENING to this morning's Today programme on BBC Radio 4, Bagehot's first, unworthy thought was: blimey, it's Statler and Waldorf from the Muppet Show. Instead, the men shouting at and across each other turned out to be the former Labour leader Lord (Neil) Kinnock and his fellow Welshman John Humphrys, the indefatigable radio presenter. If you could get past the annoyance of being unable to hear Lord Kinnock advance his arguments half the time, it was gripping stuff and important too, clarifying neatly two key questions about the future of the British press.

    Those two questions are knotty ones.

    First: if people agree that Rupert Murdoch wields too much power by owning two loss-making but respected broadsheets (the Times and Sunday Times) as well as Britain's best-selling paper (the profitable tabloid Sun) and a big chunk of the BSkyB satellite television network, who, exactly, do they imagine could afford to run the Times and Sunday Times on their own, following a forced break-up of News International?

    Those two broadsheets, after all, lose the thick end of a million pounds a week. That is a lot of money for even the most public-spirited billionaire, especially now that (we are told) owners of papers can no longer expect a stream of private dinners at Number 10 or invitations to Chequers, and will have to make do with the occasional sausage roll at the bi-annual drinks for Lobby hacks, or something of that sort.

    Second: if the current system of press self-regulation is seen to have failed, and so something closer to the statutory regulation imposed on broadcasters or advertisers tempts politicians, how far do politicians want to go with that? As noted in earlier blog postings, broadcasters in this country are obliged to be politically impartial, giving different political points of view equal air time, or in the case of minority parties, air time that is broadly proportional to their electoral clout. In the case of advertising, again as mentioned on this blog, the industry's code of conduct includes requirements to be socially responsible (ie, no pitching of booze ads at minors), and to avoid causing deliberate offence (ie, be careful with the sex and violence, especially when young people and children are involved).

    Those are not easy questions to answer. But helpful clarity has now been brought to the debate by this morning's Kinnock-Humphrys ding-dong. To put it simply, Lord Kinnock's solutions were so ill-judged as to offer a definitive guide to what not to do.

    This matters. Lord Kinnock is not just any former leader. He is close to Ed Miliband, the current leader of the opposition, enjoying access that he never had during the Blair years. In recent months, two separate Labour front benchers, one from the left and one from the right of the party, have specificially grumbled to me that Lord Kinnock (the loser of two general elections) is much too close to Mr Miliband. To quote one frontbencher, he is a "shining star in Ed's firmament".

    So what did Lord Kinnock have to say about the future of the press?

    Mr Humphrys put a good question to him about media ownership, to whit: Ed Miliband wants News International broken up, so who is going to support the loss-making broadsheets?

    Lord Kinnock's answer was to growl, with an audible curl of the lip, that this conundrum should be left to these pesky free markets that everyone likes so much nowadays. In his words:

    Back in 1981, when Rupert Murdoch was allowed to take [the Times and Sunday Times] over without the then Thatcher government referring the takeover to the Monopolies and Mergers Commission, many of us argued against that and said it was unwise simply in the application of the competition rules pertaining at the time. I think in retrospect we were absolutely right. Because if the public appetite was for the consumption of newspapers like the Sunday Times and the Times, then the market—which we are told, and it is frequently it is the case—has a wisdom, has an unseen wisdom in all these things, would have ensured that there were viable newspapers that could meet those demands. And I think that's the basis on which the argument has to be made for press and media plurality.

    There are two explanations for this tosh. Either Lord Kinnock has mistaken free markets for the tooth fairy, and believes that they can magically conjure profits from thin air. Or alternatively (and this would be my hunch, for Lord Kinnock is not daft), the former Labour leader does not actually care very much about the survival of the centre-right Times and Sunday Times. Note he talks about public demand for "newspapers like the Sunday Times and Times". I have a hunch he looks at left-leaning papers like the Guardian and the Independent and thinks, if they can do it, so can horrible right-wingers. But that is a dangerous assumption. I would urge Lord Kinnock to talk to business executives from those two titles, to hear how anxious they are about their survival.

    Lord Kinnock saved his worst idea for last, however. Asked about future regulation of the press, he said he saw "no reason at all" why newspapers should not be subjected to the same impartiality rules as broadcasters.

    Mr Humphrys did his level best to confuse the situation and shout over this astonishing admission, bellowing that Lord Kinnock had just proposed that some newspapers should be forced to support the Labour Party, to balance out newspapers that support the Conservatives. That was not what Lord Kinnock proposed, and thankfully (despite a nasty cough, by the sound of it), the former Labour leader was able to bellow his own clarification over the top.

    Broadcasters have been bound by political neutrality rules for 50 years, and this has "certainly not impeded their freedom of expression or activity in any way at all", Lord Kinnock argued. There was a lot of noise by this point, but Lord Kinnock was definitely calling for some sort of curbs on the right of proprietors to set an ideological course for their titles.

    Here is what he said:

    What [the rules] require is balance and I think that is all that anyone would possibly ask for in terms of freedom of expression… if we could have a balanced press without any form of public responsibility, that would be wonderful. What we have seen develop over the decades is a system of concentration of ownership, which has thrown into the real independence of the press...I would be the last to argue for any tightness of regulation...I would be very happy if we could ensure that there wasn’t a political predetermination to the extent of prejudice, that newspaper proprietors seek to infect others with, and secure deference to, we would live in a much freer country, of course we would

    So no political bias to the point of "prejudice". That is a loaded term. What about "set of core principles"? Under the Kinnock rules, would The Economist be required to give equal billing to advocates of trade protectionism, to supporters of the death penalty, or to nativists calling for an end to all immigration?

    Time for Ed Miliband to distance himself from his former leader, and sharpish.

    update: for clarity, I am not suggesting that newspapers should be spared market forces. It just seemed to me that Lord Kinnock's answer to the pertinent question "How might a stand-alone Times survive?" amounted to: "These markets are supposed to be clever, so they will somehow make the Times or something like it survive", which struck me as not answering the question.

  • Cycling in London

    Austerity Britain: a bonanza for bicycle menders

    Jul 19th 2011, 9:35 by Bagehot

    AUSTERITY Britain? Or a cunning Keynesian stimulus plan, imposed by stealth? If you will forgive the brief diversion from phone-hacking and other grisly matters of state, I bring news from London's streets, which now glisten with so much unswept glass that daily cycle commuters can expect a puncture a month (or, if you are Bagehot, two in as many weeks, plus a couple the month before).

    At a pinch, Bagehot can change a front tyre, but now I am deep in middle age rear punctures (chains, gears) are a job for the cycle repair shop. Forking over my latest bundle of cash this morning, and that only after pleading for a slot from the overworked mechanics, I asked about business. A lot of punctures, I was told: the streets are not being cleaned as often now.

    On balance, this is probably a win for the faltering British economy, I decided. Savings for hard-pressed local councils, plus gainful employment for lots of cycle mechanics (though presumably overtime is down for street sweepers).

    Either way, it is quite a tax on cycle commuters: one rear puncture wipes out the nominal gains I bank mentally from not taking the bus for a week.

    I shall have to seek inspiration from my favourite Argentine joke (told to me by a former resident of Buenos Aires in the 1960s). An old man, late home, assures his angry wife that he has a good explanation: "I walked home rather than taking the bus, my dove, and so I saved us two pesos," he quavers. "Ay, que tontería," she grumbles. "If you had walked home rather than taking a taxi, you could have saved us 50 pesos."

  • The British press and the phone hacking scandal

    Why David Cameron is not about to resign as prime minister

    Jul 18th 2011, 23:28 by Bagehot

    THE old rules still apply in the unprecedented scandal shaking the British press, police and political establishment, starting with the dictum: in public life, it is cover-ups that hurt more than the original crimes.

    That is why it is wrong to argue, as do some Labour MPs, some bloggers and tonight's edition of BBC Newsnight, that David Cameron logically might have to resign as prime minister, now that Britain's most senior police officer, Sir Paul Stephenson, has had to quit.

    The argument rests on a superficially neat piece of symmetry. Sir Paul, until this weekend Commissioner of the Metropolitan police, had to resign after it emerged that his force had employed the former deputy editor of the News of the World, Neil Wallis, as a PR consultant. In contrast, Mr Cameron hired Mr Wallis's boss, the ex-NotW editor Andy Coulson as his PR chief, and yet he is still in his job as prime minister. "Spot the Difference", grumbled the Newsnight political editor Michael Crick, who had earlier asked the Tory mayor of London, Boris Johnson, to explain the same contrast at a press conference this afternoon, reducing the normally loquacious Mr Johnson to stammering and flannelling.

    Ex-commissioner Stephenson clearly sees things the same way, aiming a clear barb at Downing Street in his resignation statement, when he noted that his ex-tabloid helper had never had to resign, unlike the prime minister's ex-tabloid helper, Mr Coulson (who stood down as editor of the NoTW in 2007 after the jailing of his royal correspondent and a private investigator over phone-hacking, even though he said he knew nothing about it).

    But the problem was not so much that Neil Wallis was given a two day a month contract at Scotland Yard between 2009 and 2010, advising senior officers on PR strategy. The problem is that more recently, even after the police came under huge pressure for their astonishingly lackadaisical approach to the phone-hacking scandal at the NotW, senior officers did not think it appropriate to tell anyone in government, let alone the public, that they had been paying a former deputy editor of the same paper for strategic press advice.

    This though that advice was being given at the very same time, in 2009, when Scotland Yard was deciding not to reopen the hacking investigation, and was poo-pooing the excellent reporting of the scandal by papers like the Guardian. In the end, the police only alerted the government last week, on the day that Mr Wallis was arrested on suspicion of involvement in phone hacking, as part of the current police probe, known as Operation Weeting.

    If it had only just emerged that David Cameron had been secretly taking paid advice from Andy Coulson, the prime minister would also be in astonishing trouble right now. As it is, Mr Coulson's appointment (which was a colossal mistake, as I have said many times) was a matter of public record. That makes a very big difference.

    To be fair, Sir Paul has an explanation, saying:

    In 2009 the Met entered into a contractual arrangement with Neil Wallis, terminating in 2010. I played no role in the letting or management of that contract.

    I have heard suggestions that we must have suspected the alleged involvement of Mr Wallis in phone hacking. Let me say unequivocally that I did not and had no reason to have done so. I do not occupy a position in the world of journalism; I had no knowledge of the extent of this disgraceful practice and the repugnant nature of the selection of victims that is now emerging; nor of its apparent reach into senior levels...

    ...Now let me turn to the reported displeasure of the Prime Minister and the Home Secretary of the relationship with Mr Wallis.

    The reasons for not having told them are two fold. Firstly, I repeat my earlier comments of having at the time no reason for considering the contractual relationship to be a matter of concern. Unlike Mr Coulson, Mr Wallis had not resigned from News of the World or, to the best of my knowledge been in any way associated with the original phone hacking investigation.

    Secondly, once Mr Wallis's name did become associated with Operation Weeting, I did not want to compromise the Prime Minister in any way by revealing or discussing a potential suspect who clearly had a close relationship with Mr Coulson. I am aware of the many political exchanges in relation to Mr Coulson's previous employment - I believe it would have been extraordinarily clumsy of me to have exposed the Prime Minister, or by association the Home Secretary, to any accusation, however unfair, as a consequence of them being in possession of operational information in this regard. Similarly, the Mayor. Because of the individuals involved, their positions and relationships, these were I believe unique circumstances.

    The assistant commissioner of the Met, John Yates, who took the decision in 2009 not to re-open the phone-hacking probe and who also resigned today, has an explanation to offer too:

    We in the Police Service are truly accountable. Those of us who take on the most difficult jobs clearly have to stand up and be counted when things go wrong. However, when we get things wrong, we say so and try and put them right. As I have said very recently, it is a matter of great personal regret that those potentially affected by phone hacking were not dealt with appropriately.

    Sadly, there continues to be a huge amount of inaccurate, ill-informed and on occasion downright malicious gossip published about me personally. This has the potential to be a significant distraction in my current role as the national lead for Counter Terrorism.

    I see no prospect of this improving in the coming weeks and months as we approach one of the most important events in the history of the Metropolitan Police Service, the 2012 Olympic Games. The threats that we face in the modern world are such that I would never forgive myself if I was unable to give total commitment to the task of protecting London and the country during this period. I simply cannot let this situation continue.

    Sadly, readers will note that both these explanations, though differing in tone and content, share one important quality: neither begins to make any sense at all.

  • The British press and the phone hacking scandal

    Time to cheer up, Britain will be fine

    Jul 14th 2011, 17:55 by Bagehot

    AFTER the first fortnight or so, constant gloom and indignation loses its charm. My print column this week argues that, in fact, there are reasons to be optimistic amidst all the depressing revelations about Britain's press, police and politics. Why? Well, instead of drifting into a sort of helpless fatalism, the signs are that the British want to fix this mess. We are not ready to live in a country where official corruption is greeted with shrugged shoulders. British political leaders signal that they don't want to live in a country where governments exert a tight, often unseen grip on what is reported. Good.

    Here's the column:

    BIG earthquakes are events of special horror. Long after their immediate terrors have passed, it takes survivors time to trust, fully, in the solidity of the ground. Yet some good can also come of them. Earthquakes can bring instant transparency to murky societies, exposing the greedy who put up shoddy buildings or the officials bribed to look the other way.

    Britain is enduring a political earthquake, its third in as many years. After the banking crisis revealed ineptitude in high places, and then a scandal broke over parliamentary expenses, parts of the press stand accused of lawbreaking on an industrial scale. The tale of woe is rehearsed in more detail elsewhere in the paper (see our briefing). But what will be the effects on politics?

    In terms of the immediate impact on Westminster, the picture could hardly be clearer. David Cameron has had a bad crisis, while Ed Miliband has had his best ever week as leader of the opposition. To be more precise, Mr Cameron has had to deal with two parallel scandals centred on Rupert Murdoch's Sunday tabloid, the News of the World. The first—Mr Cameron's closeness to executives from that paper's parent company, News International—was handled with aplomb. All party leaders were too cosy with press bosses because we wanted their support, the prime minister declared. That candour would have earned Mr Cameron credit were it not for his second headache: his decision to employ a tainted former News of the World editor, Andy Coulson, as his communications chief between 2007 and January this year: an indefensible blunder for which he has yet to apologise.

    Mr Miliband's boldness involved not candour but speed. He was quick to call for heads to roll at News International, then to call for Mr Murdoch to drop a bid to buy all of BskyB, a satellite broadcaster. When it became clear the government would lose a vote called by Labour on the takeover, Mr Cameron offered belated Tory support and also appointed a judge to head up a public inquiry. In an ultimate tribute, even Mr Murdoch has muttered to friends that Mr Miliband played his cards well.

    If the immediate political consequences are fairly clear, the deeper crisis of trust is harder to measure. The British were already struggling to retain their faith that—broadly—theirs is a country in which wrongdoing in high places (exposed, as often as not, by the ferocious British press) is punished without fear or favour. It is possible that this third great shaking of the ethical landscape will trigger an enduring, unhappy transformation. Perhaps voters will drift from their current mood of corrosive cynicism towards the full-blown fatalism that blights some nearby democracies, where even those mired in sleaze are routinely re-elected. Others take an alternative, though equally gloomy view. They predict that Britain's rulers may seize the chance to impose political controls on the press, aping neighbouring countries in which government leaders can sack television news anchors with a phone call, and ministers routinely "read over" (ie, censor) interviews after they have been conducted.

    The British want this fixed

    Bagehot is more optimistic. This third shaking of British public trust is a dangerous moment, but some good may yet come of it. True, there is a lot of cynicism about: one poll, by ComRes, found that 80% of voters did not trust the media in the wake of the latest scandals, while 56% did not trust any of the main party leaders to rid British politics of corruption.

    But dig deeper, and the British public are not ready to accept that their country is beyond fixing, or that the press would be better off muzzled by those in power. To put it in rather jingoistic terms, Britain is not resigned to becoming either Italy or France. A big majority of British respondents told YouGov, another pollster, that rival newspapers had "rightly" exposed serious allegations against the News of the World. Fully 86% wanted a public inquiry into the scandal: the British may dislike politicians, but they still have faith in a probe led by a judge.

    There is also reason to believe British politicians when they say they are united in regretting their earlier servility towards the Murdoch press. It is easy to scoff at political big beasts bleating about their fear of the tabloids. You know how it is, Mr Cameron told MPs in one of the week's more depressing revelations: "Your bins are gone through by some media organisation, but you hold back from dealing with it because you want good relations with the media." Labour's Lord Mandelson (a dark master of spin to two prime ministers) added this week that all parties had been cowed by the press, "because we were too fearful".

    But in fact Mr Murdoch occupies a distinct place in British politics. In America, he is straightforwardly a voice on the right thanks to assets such as Fox News: it is hard to imagine Republicans and Democrats agreeing on much about him. In Britain, Mr Murdoch is, in effect, an avatar of power in its purest form: his papers stridently support parties that are winning, backing both Labour and the Conservatives in their day. It is plausible that British parties could see a common interest in curbing his power.

    A final reason for (wary) optimism: there is cross-party agreement on the perils of government regulation of the press. The scandal is likely to widen: other newspapers will surely find themselves on the rack soon. Police officers will start being arrested. Expect calls to muzzle the press, as the public feels the ground shifting again. For now, Mr Miliband says his instinct continues to be for self-regulation. Mr Cameron talks of "independent" regulation with more teeth, but also a press that makes politicians' lives "miserable a lot of the time". That certainly sounds like Britain. Politicians must keep it that way, strengthening and not demolishing the institutions of their raucous, flawed democracy. Public trust has been terribly shaken. It can be rebuilt.

  • The British press and the phone-hacking scandal

    What, exactly, is "independent" press regulation?

    Jul 14th 2011, 10:55 by Bagehot

    THE end is nigh for self-regulation of the British press, all hail "independent regulation". That was the message from David Cameron, the prime minister, in the House of Commons yesterday.

    Bagehot, naturally, has total faith in politicians to preserve press freedoms even as the torrent of disgusting revelations continues about tabloid misconduct. Alas others are less confident. Researching this week's print column, I spoke to a well-placed Conservative who suggested that press freedoms faced a "twin threat", from a crackdown led by government, and from a separate push from Parliament. In fact, he told me: "MPs are cock-a-hoop because they can now shaft the papers that shafted them on expenses." What about the great British newspaper-reading public, I asked? Are they as interested in this whole scandal as hacks like me? His reply: leaving aside genuine public disgust over the hacking of the mobile phone of a murdered schoolgirl, Milly Dowler, "I suspect the man on the street doesn't much care".

    So what sort of press regulation lies in store? Taking questions from MPs yesterday, Mr Cameron cited the Advertising Standards Authority (ASA) as a possible model. That chimes with advice I was offered a day earlier by a senior MP who sits on the House of Commons select committee for culture, media and sport. "It is implausible to think a government-appointed body is going to regulate the press," that MP told me. Instead, he pointed to the ASA as a possible halfway house between self-regulation and statutory policing of the print media. The advertising watchdog is independent of government, the MP explained, but because it draws its powers from a legal agreement with a statutory regulator (OFCOM, in the case of commercial broadcast advertising), it has sharper teeth than the self-regulatory Press Complaints Commission.

    What does that mean? Well, after digging around a bit, I think it is fair to say: watch out for the detail. There are, in effect, two different ASA models, and one of them looks a lot more like statutory regulation than the other.

    The ASA has two broad areas of work.

    One bit polices print advertising, direct mailshots and promotional materials for compliance with the Committee of Advertising Practice code (the CAP code).

    The other bit polices broadcasting advertising under the Committee of Advertising Practice broadcast code (the BCAP code).

    Both codes go well beyond anything covered by current press codes of conduct. They include, for example, a requirement to be "socially responsible". Lordy. Is Bagehot socially responsible each week? I do hope not.

    Here is the ASA's own summary of its remit:

    The Advertising Codes contain wide-ranging rules designed to ensure that advertising does not mislead, harm or offend. Ads must also be socially responsible and prepared in line with the principles of fair competition. These broad principles apply regardless of the product being advertised.

    In addition, the Advertising Codes contain specific rules for certain products and marketing techniques. These include rules for alcoholic drinks, health and beauty claims, children, medicines, financial products, environmental claims, gambling, direct marketing and prize promotions. These rules add an extra layer of consumer protection on top of consumer protection law and aim to ensure that UK advertising is responsible.

    The ASA administers the rules in the spirit as well as the letter, making it almost impossible for advertisers to find loopholes or ‘get off on a technicality’. This common sense approach takes into account the nature of the product being advertised, the media used, and the audience being targeted.

    The broadcast and non-broadcast codes overlap a great deal, I am told, but there are some big differences born out of things like the political impartiality rules imposed on British broadcasters. This, for instance, is why political parties or campaign groups like Greenpeace, say, can buy newspaper ads but may not pay to run advertising on the radio or television.

    Crudely, when the ASA is policing non-broadcast ads, it is a self-regulator, backed by the industry and relying on industry peer pressure for most of its clout. In a small minority of cases where its ruling are ignored or flouted, it can call on what the ASA calls its "legal backstop", meaning it can refer miscreants to the Office of Fair Trading for punishment (ie, fines).

    But things look very different when the ASA is policing broadcast ads. There, the ASA is a "co-regulator". In plain English, it is the eyes and ears of a powerful statutory regulator, OFCOM. In law, the ASA is in a "co-regulatory partnership" with OFCOM, an official body with ferocious powers, backed by its right, ultimately, to revoke a broadcaster's licence (ie, shut them down). Most of the time, the ASA does its work a bit like a contractor, contacting advertising agencies and if needs be broadcasters to warn them about dodgy ads. So the ASA operates at arms length from government, and is legally independent. But once ads are on the radio or on television, it swims in a wholly different sea, because all those involved know that they operate only with the permission of the authorities.

    Is this such a bad thing? On the plus side, the fact that the ASA has a legal backstop (in the first case) and acts for a statutory regulator (in the second) certainly seems to give them access to a wide range of non-legal sanctions designed to get the attention of misbehaving advertisers. Here is the ASA's list of the sanctions that it wields. It is worth quoting in full, I think.

    Non-broadcast

    The majority of sanctions for non-broadcast advertising are co-ordinated through CAP, whose members are trade associations representing advertisers, agencies and media. There are several CAP sanctions, which can be employed in different circumstances:

    Ad Alerts - CAP can issue alerts to its members, including the media, advising them to withhold services such as access to advertising space.

    Withdrawal of trading privileges - CAP members can revoke, withdraw or temporarily withhold recognition and trading privileges. For example, the Royal Mail can withdraw its bulk mail discount, which can make running direct marketing campaigns prohibitively expensive.
     
    Pre-vetting - Persistent or serious offenders can be required to have their marketing material vetted before publication. For example, CAP’s poster industry members can invoke mandatory pre-vetting for advertisers who have broken the CAP Code on grounds of taste and decency or social responsibility – the pre-vetting can last for two years.

    Sanctions in the digital space - In addition to the above-mentioned options CAP has further sanctions that can be invoked to help ensure marketers’ claims on their own websites, or in other non-paid-for space under their control, comply with the Codes.

    CAP can ask internet search websites to remove a marketer’s paid-for search advertisements when those advertisements link to a page on the marketer’s website that hosts non-compliant marketing communications. 

    Marketers may face adverse publicity if they cannot or will not amend non-compliant marketing communications on their own websites or in other non-paid-for space online under their control. Their name and non-compliance may be featured on a dedicated section of the ASA website and, if necessary, in an ASA advertisement appearing on an appropriate page of an internet search website.

    For misleading or unfair advertising, if an advertiser refuses to comply with the ASA, then the ASA Chief Executive is able to refer the advertiser to the Office of Fair Trading for legal proceedings under the Consumer Protection from Unfair Trading Regulations 2008 or the Business Protection from Misleading Marketing Regulations 2008.

    Such referrals are rarely necessary, as most advertisers prefer to resolve the matter directly with us.

    The ASA’s designation by Ofcom of regulating Video-on-demand advertising means that we have access to a new sanction. Failure to comply with the rules in the VOD Appendix may result in the matter being referred to Ofcom with a view to Ofcom considering whether the media service provider has contravened the relevant requirements of the Act.

    Broadcast

    For broadcast advertisements, the responsibility to withdraw, change or reschedule a commercial lies with the broadcasters.
     
    Broadcasters are obliged by a condition of their broadcast licences to enforce ASA rulings.  If they persistently run ads that breach the Codes, broadcasters risk being referred by the ASA to Ofcom, which can impose fines and even withdraw their licence to broadcast.
     
    Although the obligation to comply with the Codes rests with the broadcaster, advertisers also suffer consequences if their broadcast ads breach the Codes. 

    They might, for example, face bad publicity generated by an upheld complaint to the ASA. Advertisers might also have wasted hundreds of thousands of pounds making the banned advertisement in the first place and lost the revenue that it might have generated. And because broadcasters cannot show ads that breach the Codes, advertisers might lose prime advertising slots in which a banned ad has been booked to appear. 

    Finally, any advertisements that break the Codes are disqualified from industry awards, denying advertisers and the agencies that created the ads the opportunity to showcase their work.

    The government is doubtless right that the public wants to see press regulation with more teeth. The ASA also, by all accounts, does a good job of policing advertising, inasmuch as misleading ads very rarely see the light of day and when they do, they are swiftly caught. But is this a happy model for the future of press regulation? This debate is going to need watching like a hawk.

  • The British press and the phone-hacking scandal

    The government follows Labour's lead in attacking Rupert Murdoch

    Jul 12th 2011, 17:28 by Bagehot

    THE GROUND continues to slip under the feet of the British politico-media establishment as the scandal of tabloid misconduct and phone-hacking deepens.

    In the latest development, David Cameron's coalition government—forced to choose between an embarrassing public u-turn and being seen to back Rupert Murdoch—plumped for the humiliating about-face.

    Mr Cameron has been neatly cornered by Ed Miliband, leader of the opposition Labour Party, who has tabled a non-binding motion to be voted on by the House of Commons tomorrow, saying: "This House believes it is in the public interest for Rupert Murdoch and News Corporation to withdraw its bid for BSkyB."

    A Downing Street spokesman confirmed earlier this afternoon that the government will vote in favour of this Labour motion, with the exception of the culture secretary, Jeremy Hunt, who has a quasi-judicial role in taking a final decision on whether News Corp should be allowed to bid for ownership of the whole of the BSkyB satellite television network (in which Mr Murdoch's firm currently has a controlling stake).

    The Liberal Democrats, junior partners in the Conservative-led coalition, had already signalled that their MPs would vote in favour of the Labour motion.

    Mr Miliband has been greatly energised by the phone-hacking scandal, which allows him (a) to take opportunistic potshots of the government of the day, safe in the knowledge that as opposition leader he is not bound by irritating details like due legal process and (b) to indulge his inner lefty by taking potshots at Mr Murdoch, exorcising years of Labour guilt at sucking up to the press tycoon and his newspaper empire. But fair's fair, Mr Miliband has played his cards skilfully, and as opposition leader, his job is not to be helpful in such moments, but to oppose.

    The Guardian's Andrew Sparrow makes the point that this decision to take a symbolic swipe at Mr Murdoch is especially striking given the prime minister's response a week ago when the Labour MP and former culture secretary Ben Bradshaw asked him whether wrongdoing at Murdoch papers had any bearing on News Corp's fitness to own the whole of BSkyB. Mr Sparrow writes:

    Last week, at PMQs, Ben Bradshaw suggested that Cameron should block the takeover on the grounds that News Corporation's assurances could not be trusted. Using a phrase that was seen by some as a jibe at Bradshaw's homosexuality, Cameron mocked the idea.

    "If you do not follow the correct legal processes, you will be judicially reviewed, and all the decisions that you would like to make from a political point of view will be struck down in the courts. You would look pretty for a day, but useless for a week."

    This week Cameron's stance is very different.

    Rupert Murdoch, his son James and Rebekah Brooks, the chief executive of News International (parent company of the Murdoch newspapers in Britain) have been invited to appear before the House of Commons culture, media and sport committee next Tuesday. The same committee gave serving and retired Metropolitan Police bosses a roasting earlier today (while they accused News International of trying to thwart their investigations), and the initial assumption was that the News Corp bosses would decline to appear before MPs, citing the need to deal with police questions and possible court cases first. However, in the latest startling development of the day, the Conservative chairman of the committee, John Whittingdale, told the BBC that he had been informed that Rupert Murdoch and his lieutenants would attend next week's parliamentary hearing.

    To understand just how far we have come in a short few weeks, I took another look at a speech given by James Murdoch to the 2009 Edinburgh Television Festival. At the time, Mr Murdoch's speech attracted attention for the passion with which the younger Mr Murdoch attacked the BBC's dominant, state-funded position in the broadcast and internet market, saying the scale and scope of the BBC's current activities and future ambitions was "chilling".

    But with hindsight, the remarkable aspect of the speech was the passion with which Mr Murdoch attacked regulation of the broadcast media, as practised in Britain today. He really meant it, suggesting that the authorities had no business policing things such as political impartiality in television news (ie, the thing that makes Sky News in Britain so different from Fox News in America). Regulators, he said, should step in only when there was "evidence of actual and serious harm to the interests of consumers".

    In essence, his argument boiled down to two big points. First, that even supposedly impartial news is always biased (because of things like the editorial choice of stories) so even aspiring to neutrality is nonsense. Second, that regulators like Ofcom (the British regulator of commercial broadcasting) are unaccountable, because true accountability is earned by selling your product commercially to lots and lots of people.

    Or in Mr Murdoch's own words:

    the system is concerned with imposing what it calls impartiality in broadcast news. It should hardly be necessary to point out that the mere selection of stories and their place in the running order is itself a process full of unacknowledged partiality. The effect of the system is not to curb bias – bias is present in all news media - but simply to disguise it. We should be honest about this: it is an impingement on freedom of speech and on the right of people to choose what kind of news to watch. How in an all-media marketplace can we justify this degree of control in one place and not in others?...

    ...Other areas of the media have been able to get by without it. There is a strong alternative tradition with at least four centuries behind it – first of pamphlets and books, later of magazines and newspapers. From the broadsides of the Levellers, to the thundering 19th century Times, to The Sun fighting for the rights of veterans today – it is a tradition of free comment, of investigative reporting, of satirizing and exposing the behaviour of one’s betters.

    Yes, the free press is fairly near the knuckle on occasion – it is noisy, disrespectful, raucous and quite capable of affronting people – it is frequently the despair of judges and it gets up the noses of politicians on a regular basis. But it is driven by the daily demand and choices of millions of people. It has had the profits to enable it to be fearless and independent. Great journalism does not get enough credit in our society, but it holds the powerful to account and plays a vital part in a functioning democracy.

    Would we welcome a world in which The Times was told by the government how much religious coverage it had to carry?

    In which there were a state newspaper with more money than the rest of the sector put together and 50% of the market?

    In which cinemas were instructed how many ads they were allowed to put before the main feature?

    In which Bloomsbury had to publish an equal number of pro-capitalist and pro-socialist books?...

    ...

    Above all we must have genuine independence in news media. Genuine independence is a rare thing. No amount of governance in the form of committees, regulators, trusts or advisory bodies is truly sufficient as a guarantor of independence. In fact, they curb speech. On the contrary, independence is characterised by the absence of the apparatus of supervision and dependency.

    Independence of faction, industrial or political.
    Independence of subsidy, gift, or patronage.

    Independence is sustained by true accountability – the accountability owed to customers. People who buy the newspapers, open the application, decide to take out the television subscription – people who deliberately and willingly choose a service which they value. And people value honest, fearless, and above all independent news coverage that challenges the consensus. There is an inescapable conclusion that we must reach if we are to have a better society.

    The only reliable, durable, and perpetual guarantor of independence is profit.

    Mr Murdoch is right that the state-funded BBC, especially in its online operations, needs to be exceedingly careful not to smother commercial rivals and start-ups. He is right to challenge the idea of statutory regulation of the press, and right that the printed press would wither if subjected to the kind of political impartiality rules upheld in British broadcasting. Only last night, Bagehot was alarmed when a Tory MP and former press secretary for David Cameron, George Eustice, suggested on BBC 2's Newsnight that a future model of regulation for the British printed press should be based on the rules now used to police the broadcast media (11 minutes into video).

    But it is a mark of how far Mr Murdoch's proud, profitable, innovative company has fallen that his 2009 speech—including his claim that commercial success equals democratic accountability—now sounds hollow and hubristic. A company that has done more than most to promote a great social good—reporting the news in a way that is commercially sustainable—is currently close to giving for-profit news a bad name. It is hard to imagine that was the Murdoch family's intention.

  • The British press and the phone hacking scandal

    Now it is an earthquake

    Jul 11th 2011, 19:56 by Bagehot

    EARTHQUAKES are always hard to predict in advance. But all the signs point to it: the ground is about to shift again under the British establishment, in a third great examination of misconduct in high places (after the banking crisis and the parliamentary expenses scandal).

    There were moments over the weekend when Bagehot wondered if the press was overblowing the scandal over phone-hacking and other abuses by British newspapers, notably the now-defunct News of the World. We journalists have a bad habit of assuming that the rest of the world is as fascinated by media news as we are. I had my moments, therefore, when I wondered if the wider public was so very fussed about the revelations filling the weekend papers about five-year old phone message interceptions, or the latest signs that evidence of wrongdoing had been ignored, covered up or deleted.

    True, the wider public, it seemed fair to guess, was angry about the most baroque revelations: eg, that the News of the World had snooped on and deleted voicemail messages on the mobile phone of Milly Dowler, a 13 year old schoolgirl who had been abducted and was later found murdered, giving her family false hopes that their missing daughter might still be alive.

    But there was the counter-evidence that an extra-large print-run of the final, souvenir edition of the disgraced tabloid sold out in many shops by lunchtime. And there was something nakedly opportunistic about the politicians crowding onto the Sunday airwaves, denouncing the media empire of Rupert Murdoch that until weeks ago they wooed and courted.

    That was before today, and its truly astonishing cascade of revelations. Public opinion may still be hard to gauge (a first opinion poll, by YouGov, paints a picture of some confusion, with 78% saying that tabloids are "out of control" but also at the same time 69% saying only a "small minority of journalists" who are tarnishing the reputations of other honest and hardworking journalists).

    But—like village dogs yelping at some faint whiff of sulphur from the ground—the politico-media establishment has decided that an earthquake is imminent. Sensing the danger that lies just ahead, central figures in the crisis are rushing and scrambling to get their version of events out first. From News International to the government and the police, powerful figures seem to have decided that the public are about to want answers to a lot of very painful questions, and that the best defence is transparency.

    To list just some of the day's developments:

    • The Conservative culture secretary, Jeremy Hunt, announced he was referring News Corporation's bid to take full ownership of its BSkyB satellite television network to the Competition Commission. News Corporation had left Mr Hunt with no choice, after abruptly withdrawing an offer to spin off its rolling news channel, Sky News, a proposed concession that had been designed to avoid a full-blown competition probe. That move (which parks the whole question of a purchase for at least six months) followed calls for News Corp to drop its takeover bid from the Labour opposition leader, Ed Miliband.

    Mr Miliband had earlier said that he would force a vote on the BSkyB bid in the House of Commons on Wednesday, prompting government sources to brief furiously that they were trying to find ways to persuade News Corp to drop or postpone its planned purchase. According to the Daily Mail:

    A senior figure said: 'This deal is in cold storage. We want to get this sorted out before Wednesday.'

    Privately Tory officials were blunt that the Sky deal has been politically damaging to the Prime Minister.

    'We always knew we were going to have to eat a s*** sandwich over the BSkyB deal,' said one Government source. 'But we didn’t know it would turn into a three-course dinner.'

    The Liberal Democrat leader and deputy prime minister, Nick Clegg suggested the deal should be revisited, seeming to confirm reports that a Commons vote might see many Lib Dem MPs vote with Labour, splitting the coalition. As for David Cameron, the prime minister dropped his longstanding insistence that he would not comment on the BSkyB, as it was the subject of a quasi-judicial process. Taking questions from the press, Mr Cameron said:

    There are legal processes when one media company wants to take over another media company, there are legal processes about competition, about plurality, about fitness and properness and there are organisations responsible for carrying out those tests and advising ministers who have to act in a quasi-judicial capacity. It's very important the proper processes are followed.

    All I would say is this: if I was running that company right now with all the problems and the difficulties and the mess frankly that there is I think they should be focused on clearing those up rather than on the next corporate move. That is the view I would take if I was running that company. But what government has to do is follow all the correct procedures and processes and that is exactly what we will do

    • News International said it was investigating new allegations that newspapers from across its stable used deception to obtain private banking, tax and property information about Gordon Brown, when he was chancellor of the exchequer and prime minister. The BBC quoted from letters sent to the editor of the Sunday Times by Abbey National, a building society, reporting suspicions that "someone from the Sunday Times or acting on its behalf has masqueraded as Mr Brown for the purpose of obtaining information from Abbey National by deception."

    Still more damagingly, sources close to the family of the former prime minister told the BBC and the Guardian that they had been caused great distress when the Sun newspaper somehow obtained details of their infant son's medical records. The editor of the Sun at the time was Rebekah Brooks, who is now chief executive of News International, parent company of the group's British newspapers. Mrs Brooks, it emerges, called Mr Brown and his wife in 2006 to inform them that her newspaper knew of their son's cystic fibrosis, though they themselves had only just learned that their child might have the illness.

    • The BBC's business editor, Robert Peston, reported the existence of emails apparently showing that the News of the World paid a police royal protection officer for private contact details of members of the royal family and their staff. According to Mr Peston, News International executives found the emails in 2007 but only handed them over to police last month. The emails allegedly include a request from the former royal correspondent at the tabloid, who was later jailed for phone-hacking, to his then editor, Andy Coulson, for funds to pay the corrupt police officer. Mr Coulson, who resigned his editorship in 2007 but has always denied any knowledge of wrongdoing in his newsroom, later became director of communications to David Cameron, both in opposition and then in government after the 2010 general election. Mr Coulson was arrested last Friday, shortly after Mr Cameron had defended his decision to recruit him, saying he had wanted to give the ex-tabloid editor a "second chance" after receiving assurances that Mr Coulson knew nothing about misconduct at his newspaper.

    In a marked change of tone, Mr Cameron said today: "If it turned out that those assurances were untrue, I would be incredibly angry and incredibly let down and the first person to put my hand up and point out that this brings about a different situation".

    • The Metropolitan Police issued a statement, suggesting that leaks appearing in the press today about payments to corrupt officers were intended to wreck its current investigations into police bribery. The statement reads:

    It is our belief that information that has appeared in the media today is part of a deliberate campaign to undermine the investigation into the alleged payments by corrupt journalists to corrupt police officers and divert attention from elsewhere.

    At various meetings over the last few weeks information was shared with us by News International and their legal representatives and it was agreed by all parties that this information would be kept confidential so that we could pursue various lines of inquiry, identify those responsible without alerting them and secure best evidence.

    However we are extremely concerned and disappointed that the continuous release of selected information - that is only known by a small number of people - could have a significant impact on the corruption investigation.

    • The family of the murdered schoolgirl Milly Dowler met the deputy prime minister, Mr Clegg, and called on Rebekah Brooks to resign.

    There was more. Allegations that the Prince of Wales and his wife may have been targeted by phone hackers. Accusations in parliament that John Yates, the assistant commissioner of the Metropolitan Police, misled MPs about the scale of the phone hacking scandal. Reports that the police are to question Mrs Brooks, as a witness rather than as a suspect. The list goes on.

    When does this torrent of leaks, counter-leaks and allegations stop? Not any time soon, is the feeling tonight. Too many people see an interest in getting their side of the story out first.

    Trust is already in short supply in Britain, a country once proudly wedded to the idea that it is much less corrupt than its neighbours. That belief of a country ruled by law is not dead: just look at the poll numbers calling for a judge-led public inquiry into press wrongdoing, suggesting that judges, at least, enjoy public confidence. But once again, the familiar landscape is shaking beneath our feet.

  • Britain and Afghanistan

    A week of crises, at home and abroad

    Jul 8th 2011, 15:48 by Bagehot

    MY PRINT column, written before the closure of the News of the World and the arrest of its former editor, Andy Coulson, looks for lessons in a tumultuous week for David Cameron. Here it is:

    AS A rule, a Royal Air Force transport over Afghanistan is a poor place for collecting political intelligence. The engines are loud and the ride not smooth, as pilots swoop and roll to lessen the threat of attack from the ground. Thus it signalled that something urgent was afoot when David Cameron’s director of communications, Craig Oliver, began clambering about on a cramped flight out of Kabul on July 5th. He wanted to ask reporters accompanying the prime minister their thoughts on some breaking news.

    The two-day trip had already been touched by crisis. A plan to visit the town of Lashkar Gah, intended to show off improving security, was called off after a young soldier—one of 9,500 British troops in Afghanistan—went missing nearby, and was later found dead. Bagehot watched Mr Cameron handle the grim setback with assurance. As British forces searched for the soldier, the prime minister declared he would not use valuable helicopters on his own account. His sympathies expressed, he returned to his main task: explaining what Britain is doing in Afghanistan.

    Mr Oliver’s breaking news involved a grubbier crisis: fresh allegations against the News of the World, a tabloid mired in ever-widening claims that it obtained scoops by illegally hacking into the mobile-phone messages of celebrities, politicians and other public figures. This time, the accusation was that the paper had hacked into the voice-mail of Milly Dowler, a schoolgirl whose abduction and murder in 2002 were front-page news.

    Mr Cameron’s reaction was less assured. Questioned amid the shady pines and fountains of the presidential palace in Kabul, he blustered, calling the Milly Dowler allegations “really appalling,” and if true, a “dreadful situation”. A day later, back in the House of Commons, he was still awkward. He bowed to demands from the opposition Labour Party for a public inquiry into phone-hacking. He agreed that police foot-dragging over the affair looked troubling. But then he said a public inquiry (or inquiries) might have to wait until the same police completed a criminal probe. Labour gleefully called Mr Cameron “out of touch”.

    There are some straightforward reasons for Mr Cameron’s caution. Until January this year, the Downing Street head of communications was Andy Coulson, a former News of the World editor who resigned in 2007 after his royal correspondent and a private investigator were jailed for conspiracy to intercept voice-mail messages (Mr Coulson denied any knowledge of wrongdoing). Saying Mr Coulson deserved a second chance, Mr Cameron hired him as his PR chief, then stood by him until months of digging, notably by the Guardian, forced the ex-editor to resign for a second time in January. (The prime minister should send the Guardian flowers: if Mr Coulson were still in office, his whole government would be in crisis.)

    And like all recent prime ministers, Mr Cameron is close to bosses at News International, parent company of the News of the World, the Sun, Times and Sunday Times. He calls Rebekah Brooks, the firm’s chief executive, a friend. Alas, Mrs Brooks was News of the World editor when Milly Dowler’s phone was allegedly hacked (she says it is “inconceivable” she knew of such acts).

    The confidence trick

    But other lessons can be drawn from this week’s tale of two crises. Britain’s deployment in Afghanistan amounts to a three-sided puzzle of high politics. On one side, most British voters no longer understand why troops are still there: internal government polling shows only about 40% believe Britain’s presence helps protect national security. Against that, the British hate losing wars, and would dislike even a half-defeat in which a decade of spilled blood bought only a thuggish Afghanistan in which the Taliban play a big role. Finally, Mr Cameron is a junior partner with limited autonomy. British generals may dislike talk of pulling troops out of Afghanistan too soon, but Barack Obama is pulling tens of thousands out by September 2012.

    Mr Cameron is confident in such tight spots. When public opinion is uncertain, Mr Cameron relishes explaining his case. Visiting Camp Bastion, an Ozymandian citadel that has sprung from the Afghan desert, he said the goal was not to create a “perfect country”, but an Afghanistan able to secure itself and deny terrorists a safe haven. In his telling, early thoughts of nation-building were unrealistic, then during the Iraq war the allies took their eyes off Afghanistan. Now, though winning hearts and minds is “helpful”, security unlocks the Afghan puzzle. Mr Cameron thinks that—for all the risks—setting a departure date (and making clear some Taliban will feature in a final political settlement) focuses minds in Kabul and among the British armed forces too. If his generals disagree, he will overrule them. In short, he is a man at ease with the exercise of formal authority.

    In contrast, the sordid saga of phone-hacking revolves around low politics and the changeable tempests of mass opinion. In such a context, Mr Cameron’s confidence seems to desert him.

    Consider the evidence. Alone in Mr Cameron’s rarefied inner circle, Mr Coulson offered Mr Cameron a gut feel for the popular mood. That, close observers say, helps explain why the ex-editor survived so long. Faced with loud popular or even press hostility—as over health-service reforms or planned changes to sentencing policy—Mr Cameron changes course.

    Mr Cameron’s enemies accuse him of swaggering overconfidence. In fact, a week of twin crises—of war in Afghanistan and sleaze at home—suggests something more complex. Assured in his office, he is ill-at-ease in matters of raw power, and in the face of public fury. That timidity has led him to some of his worst mistakes, from policy U-turns to embracing Mr Coulson. And more crises lie ahead, of both high and low politics.

  • The British press and the phone hacking scandal

    David Cameron apologises, but for the wrong thing

    Jul 8th 2011, 11:43 by Bagehot

    TWO DAVID Camerons held a press conference this morning in Downing Street. The first was assured and compelling, and pulled off the difficult task of jumping ahead of the news cycle and setting the agenda for what comes next in the ever-widening scandal involving tabloid phone-hacking and the alleged bribery of policemen.

    This Mr Cameron did a whole series of smart things. He admitted that leading politicians had spent several years ignoring the signs of widespread misconduct within the British press because they were anxious to have the support of big press and media outlets. He included himself in that camp, and said things have to change. He promised that in the future relations with leading proprietors, editors and journalists would have to become less cosy if public trust was going to be regained. And he came close to cutting his ties of friendship and loyalty with Rebekah Brooks, the embattled chief executive of News International and former editor of the News of the World, the Sunday tabloid at the centre of the storm which is to be closed this weekend for good. In his own Falstaff-Prince Hal moment, this new, less cosy prime minister noted press reports that Mrs Brooks had offered her resignation (though some at NI deny this), and said:

    …as I have said, it’s not right for a Prime Minister to start picking and choosing who should and shouldn’t run media organisations. But it has been reported that she offered her resignation over this. And in this situation, I would have taken it

    He announced that there would be a public inquiry chaired by a judge and taking evidence from witnesses on oath. He said it would address three questions. Why did a first police investigation into phone-hacking, conducted in 2006, fail so abysmally? What exactly was going on at the News of the World? And thirdly, what was going on at other newspapers? Independent police investigators would also probe allegations of bribe-taking by police officers, he said.

    He announced a second inquiry into a completely new, independent system of press regulation, moving away from the current system of self-regulation. He declared, correctly, that the current Press Complaints Commission had been "absent" during this greatest of scandals. A committee of the great and the good seems to loom.

    Then, alas, there was a second David Cameron on display today. Tense, tetchy, defensive and red-faced, he offered a wholly inadequate explanation of why he had hired as his press chief Andy Coulson, a former editor of the News of the World arrested this morning to be questioned about what he knew about phone-hacking on his watch and the alleged corruption of police officers.

    Again and again, Mr Cameron returned to the same formula, saying that he had given Mr Coulson a second chance, but that regrettably that second chance had not worked out. He suggested that Mr Coulson had done the decent thing by resigning from the News of the World in 2007 after the jailing of that tabloid's royal correspondent and a private investigator for phone hacking. Mr Cameron had sought assurances and received assurances that despite that resignation, Mr Coulson knew nothing about the wrongdoing in his newsroom. The prime minister revealed that he had commissioned a private company to run a background check on Mr Coulson.

    Alas, he said repeatedly, it had not worked out, though—and Mr Cameron kept stressing this, as though frustrated that we hacks could not see the importance of this point—"no one has ever raised serious concerns about how he did his job for me."

    This was a wretched defence. Worryingly, if Mr Cameron's tetchiness was at all sincere, he cannot yet see this. Mr Cameron has a big problem, relating to his decision to hire Andy Coulson in 2007, as his director of communications in opposition. He has a truly huge problem relating to his decision to take Mr Coulson with him into government in 2010 as Downing Street director of communications, after the Guardian and other papers had already raised serious allegations about Mr Coulson, notably in 2009.

    Talking about giving Mr Coulson a second chance, and how he paid the price once by resigning in 2007, does not help at all. Mr Cameron is not a probation officer, worrying about the rehabilitation of offenders. His responsibility, when hiring Mr Coulson, was less to probe Mr Coulson's past troubles than to assess the present-day suspicion that Mr Coulson is a liar. The problem is that all working journalists with experience of any daily newsroom (including me), simply never, ever believed Mr Coulson's defence that he did not know how his own newspaper was landing some of its juiciest scoops. It was not just an implausible explanation, it was an insult to the intelligence.

    Half the political editors and reporters in the room this morning knew of people who had warned Mr Cameron and his closest aides that hiring Mr Coulson was a grave error. Some of those in the room had probably passed on such warnings themselves. That explains the sense of real frustration on the side of the press: this clever man at the podium was defending a nonsensical argument.

    If Mr Cameron had not hired Mr Coulson, this whole sordid saga would be mostly about the past, and acts that took place under a different government. By hiring Mr Coulson, this saga is squarely about Mr Cameron's judgement.

    Here is why this all matters, and why it is not going away.

    1. Mr Cameron was peppered with questions today about what he knew and when did he know it. He was asked if he knew that the editor of the Guardian, Alan Rusbridger, had warned his aides about specific, serious allegations involving Mr Coulson that had yet to emerge. He was asked if he had been warned or knew of the existence of emails apparently showing that payments were made to corrupt policemen by the News of the World. He told us he did not know about those emails, and more broadly told us he wasn't given any "specific, actionable information" about Andy Coulson and wrongdoing.

    Such questions are only going to increase in number. Mr Cameron is going to need a good, reassuring answer for every single one of them.

    2. Mr Cameron's image as a decent, honourable man, his personal brand as the ultimate guarantor that this is a new, moderate Conservative Party, is on the line now.

    The most revealing moment of the entire press conference for me came when Mr Cameron was asked a question about whether this was a moment of reputational damage to compare with Tony Blair and the Iraq war. In answering that this situation was not like the Iraq crisis at all, Mr Cameron—off his own bat—said it was also nonsense to compare it with money for tobacco advertising.

    That was a reference to a smaller, earlier scandal involving Tony Blair and Bernie Ecclestone, the Formula 1 boss. That affair blew up very early in Mr Blair's time in office (Mr Ecclestone had given a donation to the Labour Party in 1997, and months later, the new Labour government proposed giving Formula 1 a lucrative exemption from a ban on tobacco advertising. Though there was no suggestion of impropriety by Mr Ecclestone, there was a big fuss, and in the end, the donation was repaid). At that time, Mr Blair used his post-election honeymoon aura to downplay the allegations of favours being bought, saying that voters knew he was a "pretty straight sort of guy". Later, as public distrust of Mr Blair grew, the moment would come to be seen as a symbol of the disenchantments that lay ahead.

    Was the Ecclestone reference a slip of the tongue? Or a revelation about what is seething within Mr Cameron's brain, as he grapples with the first big threat to his own image, so central to his project of detoxifying the Tories? Is Mr Cameron worrying that this is the moment people start to question the idea that he is a pretty straight sort of guy?

  • The British press and the phone hacking scandal

    The tabloid press turns on itself

    Jul 7th 2011, 15:10 by Bagehot

    UPDATE: a short while after the posting of this blog entry, James Murdoch, the executive chairman of News International and head of international operations at News Corporation, announced that he was closing the News of the World newspaper. The final edition of the Sunday tabloid will be published this weekend and will not carry commercial advertising. In a statement, Mr Murdoch says the newspaper and News International had "failed to get to the bottom of repeated wrongdoing that occurred without conscience or legitimate purpose". The full text is here. The statement, some already are noting, does not preclude the launch of a seven day Sun operation.

    LOWER a piece of bacon fat on a string above a box full of ferrets, and you will have some idea how the world of the British tabloid press looks today, as former colleagues, bosses and friends turn on each other with a snapping of sharp teeth and a glinting of narrow, yellow eyes.

    Pressure is mounting on Rebekah Brooks, the former editor of the News of the World and the Sun, and current chief executive of News International, the mighty media group that owns those two tabloids as well as the Times and the Sunday Times.

    It is getting hard to keep up with the torrent of new allegations, but at the moment the most lethal charge is that the NotW illegally hacked into the mobile telephone voice messages of the relatives of soldiers killed in Iraq and Afghanistan.

    This is a particular blow to a tabloid stable which has long wrapped itself in the flag, campaigning for “Our Boys” in the military and sponsoring annual “Milly” awards for brave servicemen and women.

    Right on cue, papers from the NI stable have begun lashing out in all directions.

    An especially choice article in the Sun this morning quotes MPs using parliamentary privilege to attack the Daily Mail and Daily Mirror, accusing the latter of using phone hacking to uncover a celebrity adultery story.

    The Sun then turns on Andy Coulson, the former NotW editor who between 2007 and January of this year was communications director to David Cameron.

    Here is an extract from the Sun’s report, congratulating its parent company for finding emails in corporate archives, fingering Mr Coulson:

    Cops have also been handed fresh emails, which allegedly show that former News of the World editor and No10 press boss Andy Coulson condoned payments from his staff to bent police officers.

    Documents from News International which appear to indicate Scotland Yard officers received payments from the paper have been formally referred to the Independent Police Complaints Commission, the force said today.

    The company said in a statement: "The fact that these developments came as a result of voluntary disclosure demonstrates full co-operation with the police and News International's determination as a company to deal responsibly and correctly with the issues that have arisen."

    During the Commons debate, Mr Cameron said he took "full responsibility" for his decision to employ Mr Coulson, who quit in January.

    Oddly, the report leaves out the bits of the parliamentary debate in which MPs alleged that Mrs Brooks and other NI executives had misled earlier parliamentary probes into phone hacking.

    Amidst all this grisly murk, the day has at least seen a couple of moments of unintended comedy to lighten the gloom.

    The first is this detail from the Guardian, which I shall treasure for a while:

    News International (NI) continued its internal investigation into phone hacking at the News of the World. Senior sources said they were examining whether former News of the World journalists may have kept money claimed on company expenses instead of passing it on to police officers in exchange for stories. Paying police officers is itself illegal.

    In other words, the paper’s bosses fear some staff may not have been honourable enough to pay policemen illegal bribes, but merely pretended to in order to trouser the cash.

    The other moment of low comedy came on BBC Radio 4’s Today programme, in a remarkable interview with a former head of the army and four star general, Lord Dannatt.

    Lord Dannatt, it quickly emerged, was still having trouble coming to terms with the idea that when tabloid newspapers offer noisy support for “heroes” in the military, there might be a particle of self-interest involved.

    Listen here, as the general audibly struggles with the suggestion from the presenter, Jim Naughtie, that it would amount to “hypocrisy” if the NotW really did hack into the phones of grieving military families, while all the while running sententious stories about "fallen heroes" and how much the paper cared for them. Here is a transcript:

    Lord Dannatt: There is no doubt at all that the armed forces, and our deployed soldiers in Iraq and Afghanistan in particular, have had great support from News International, from both the News of the World from the Sun, if you think about the annual military awards, the Millies, that was started and sponsored by the Sun, there is no doubt that they have given tremendous support. So therefore it is really very puzzling who has done what on the one hand, and who has done what on the other.

    Naughtie: …there’s a hypocrisy involved, isn’t there?

    Dannatt: Is it? There probably is an hypocrisy involved. Of course the issue which we can’t prejudge, and I really don’t know, is how far up if you like the News of the World or the Sun chain of command knowledge of this actually went. If it went to the very top, then I think it is desperately serious. But if it caps out at some level, then that is more handleable, and I think the whole support for the armed forces by News International is more understandable. But if it goes right to the top, then frankly one just stands back in absolute amazement.

    Tune in next week, to hear Lord Dannatt reel on hearing that Al Capone’s donations to the Chicago Widows’ and Orphans Fund involved more than just altruism.

  • The British press and the phone hacking scandal

    How vulnerable is David Cameron?

    Jul 6th 2011, 10:43 by Bagehot

    A BRIEF thought on the phone-hacking scandal, which is dominating British headlines this morning, and will doubtless dominate Prime Minister's Questions in the House of Commons later today.

    David Cameron returned from Afghanistan late last night and is preparing to make a statement on troop withdrawals today. Now he knows he will also face questions about the News of the World, the Sunday tabloid that now stands accused of hacking into the mobile phones of a murdered schoolgirl, Milly Dowler, whose killing became a major news story in 2002. That hacking may have given the family of Milly Dowler false hopes that she was still alive, after voicemail messages were accessed, and may have confused police investigators at the time, it is alleged. The same tabloid is also now accused of snooping on the phones of ordinary citizens bereaved in the July 7th 2005 London transport bombings.

    In terms of public opinion, those charges—unearthed by the Guardian—take this already sordid story to a very different place: we are no longer talking about hyper-competitive tabloid reporters spying on celebrities, politicians or members of the royal family.

    The Labour leader, Ed Miliband, can be expected to make much of Mr Cameron's friendship with Rebekah Brooks, who was editor of the NotW at the time that Milly Dowler's phone was apparently hacked. Mr Miliband has already called for Ms Brooks, who is the chief executive of News International, owner of the Sun, the NotW, the Times, and Sunday Times, to consider her position. MPs will also have much to say about allegations, this time unearthed by Vanity Fair and the BBC, that another former NoTW editor, Andy Coulson, who was until earlier this year head of communications at Downing Street and a key aide to Mr Cameron, apparently authorised payments to the police for stories. News International has confirmed finding information about payments made to police officers in a huge archive of corporate emails, and confirms that this information has now been passed to Scotland Yard investigators probing the phone-hacking scandal.

    This is a bad business for News International, the British press in general (who know that vile conduct went well beyond the NotW), and for the Metropolitan Police, who have been left looking at best cowardly and at worst complicit in covering up wrongdoing, after senior officers displayed astonishing reluctance to dig deep into a phone-hacking scandal that dates back to 2005.

    But it is a nasty moment for Mr Cameron, too. Most people have a pretty low opinion of the tabloid press already, and most of the new revelations merely buttress rumours and suggestions that have been in the ether for a long while. But Mr Cameron's political strength is very much bound up in his personal brand: time and again he uses his own character and life story (eg, talking of his devotion to the National Health Service which looked after a severely disabled son, Ivan, who died in 2009) as proof that the Conservative Party has changed, and is no longer a nasty, heartless outfit. Even people who do not agree with his policies seem at least somewhat willing to accept that as a person, Mr Cameron is decent and broadly honourable. That is pretty rare in modern politics, and means Mr Cameron has something to lose.

    Mr Cameron is most vulnerable when it comes to Mr Coulson. He chose to give Mr Coulson a second chance and hire him as his communications chief in 2007, only months after Mr Coulson had resigned as NotW editor to take the rap for the first episode in the phone-hacking scandal. (Mr Coulson resigned after his paper's royal editor and a private investigator were both jailed in January 2007 for conspiracy to access phone messages, though Mr Coulson denied knowing anything about wrongdoing on his watch, blaming it on a single, rogue reporter.)

    Now Mr Coulson faces fresh allegations that could blow apart his "I know nothing" defence.

    Given the mess that is about to land on his lap, Mr Cameron may not feel very charitable towards the Guardian, the newspaper which done more than any other to uncover this scandal, to its great credit.

    But this morning he should be grateful. If it were not for the Guardian and others digging away for the last several months, Mr Coulson might still be director of communications at Number 10 this morning. And if he were still there, then a rough day for the prime minister would be something quite different: a catastrophic day in which the prime minister, and his startlingly poor judgement in hiring Mr Coulson, was the story.

     

    Read on: The phone hacking scandal

  • Britain in Afghanistan

    David Cameron’s hunt for an Afghan exit strategy

    Jul 4th 2011, 19:28

    THE British public no longer understand why there are 9,500 members of the British armed forces in Afghanistan (if they ever did). The British public hate losing wars (and would not much like a half defeat in which a decade of spilled blood bought only a thuggish, fragile Afghan state in which the Taliban play a big role).

    Those two pressures—for British troops to leave quickly, but not before something looking like progress has been achieved—mark the outside edges of the political space within which David Cameron’s Afghan policy operates.

    The British prime minister is in Afghanistan today, and Bagehot is one of the reporters travelling with him. In briefings from Mr Cameron and British military chiefs, we were assured that those two pressures are not, in fact, in conflict, because the Afghan national army and police are finally gaining in professionalism and confidence, to the point that they will soon be able to take over responsibility for their own country’s security.

    Mr Cameron has already made clear his plan to remove British combat forces by the end of 2014. He confirmed to us today his intention to bring a “modest” number home by the end of next year, in a mark of his growing confidence in Afghan forces, an announcement that follows last week’s declaration by President Barack Obama that tens of thousands of American troops will be coming home by September 2012, reversing a 2009 surge in troop numbers.

    As the British prime minister and his commanders tell it, the very act of setting a deadline for withdrawal has concentrated minds wonderfully within the Afghan military and central government. Still more happily, those Afghans who suspected that foreigners planned to occupy their country permanently have been reassured that the American-dominated international force is serious about leaving.

    In short, the argument goes, the situation is becoming a virtuous circle: something approaching success is in sight, and leaving soon makes that success more likely.

    Britain’s most senior soldier, the chief of the defence staff General Sir David Richards, told us that the plan to leave by 2014 is “do-able” and that the unprecedented improvements visible among local security forces left allied commanders “in a comfortable place”.

    Is such confidence justified? The 2011 fighting season is only now underway (delayed by a late opium poppy harvest, we are told) and has so far offered both good and bad news. Travelling with someone like a prime minister to a combat zone offers moments of high-level access, but much of the time is spent in helpless blindness as we reporters are ferried about in a security bubble.

    Some British and American commanders have been almost comically positive about the situation on the ground. A British brigadier told us of recent successes, such as Afghan operations against drug warlords or the opening of a postal service between two southern towns, Marjah and Lashkar Gah. In the next breath he told us about some horrible recent events, such as the killing of 20 Afghan bus passengers by a roadside bomb on Highway Nine, or the growing intimidation of local farmers by the Taliban, and explained that this was “an indication of the desperate measures the insurgent is prepared to go to”. In Helmand province, he added, there had been several attempts to kill the governor and local police chief in the last few months. Each time, Afghan forces had thwarted the attacks without the need for foreign help, “though we remain in an overwatch position”.

    Perhaps the brigadier is quite right: he is certainly better informed than I am. But the argument did seem to be that each piece of good news shows that things are going well, while each piece of bad news shows that things are going well.

    While Bagehot is being cynical, I would note that though we heard endlessly about the growing confidence of Afghan commanders from British generals with clipped, calm tones, and American colonels with southern lilts, we have yet to hear a single Afghan to confirm these impressions. Indeed, we have yet to meet a single Afghan.

    I was last in this country a decade ago, tagging along with the Northern Alliance as they pushed the Taliban and their Arab allies from towns like Taloqan and Kunduz. Back then in 2001, foreign correspondents were more or less tolerated guests of individual Afghan commanders, living and travelling in a rural world that was only barely touched by the outside world. American and allied ground forces were only a rumour, with special forces supposed to be somewhere high on the cliffs overlooking the nearby Amu River, near the ruins of a citadel built by the armies of Alexander the Great, where the capital of a toppled Corinthian column still peeped from the sand.

    Today in 2011, travelling with a British prime minister, the country outside is felt and seen mostly as a threat: a glimpse of bright glare through an aircraft porthole, as an airman in helmet and body armour scans the ground for threats on a swift, plunging final approach, or farmers glimpsed for an instant through the dark glass of a speeding convoy.

    I am writing this on the floor of a windowless room in a camp outside a city I am not allowed to name for security reasons. I can say that our day began in the Ozymandian sprawl of Camp Bastion, a dusty, sun-bleached military city in the south: a temporary citadel seemingly built to last. Afghanistan cannot be seen from within its grids of paved roads, lined with block after block of stacked shipping containers, camps of air-conditioned tents, a vast airfield with a pair of 10,000-foot runways, and mile after mile of blast walls of rocks and sand packed into metal and canvas cages.

    It is July 4th, and the main canteen at the American marine corps base was decorated for Independence Day with large, carved and painted polystyrene models of the Statue of Liberty, the Liberty Bell and a wobbly, three-times life-size turkey (painted purple). The sculptures were signed “Dadhi, Nepal” and the artist had added a Hotmail email address in a bid for fresh commissions. Breakfast was served by contractors from the Indian sub-continent and the Philippines. A bus with German number plates and a Filipino driver ferried us past a British forces post office with a red pillar box, marked with the queen’s EIIR monogram. Supper is a Sri Lankan curry and the sentries at the nearest airbase are Belgian and Mongolian.

    Every briefing has been more bullish than the last, but there have also been some jarring, jolting moments. Early on today, it became clear that something had gone wrong near the southern town of Lashkar Gar. Mr Cameron had been due to fly down there by helicopter from the giant southern base of Camp Bastion, but very soon it became clear that trip had been cancelled, for what commanders would only say were “operational reasons”. Hours later, we were told first that an allied soldier was missing, then that the missing man was British. As night fell, news reached us that the body of the missing British soldier had been found, shot dead.

    A single incident, however tragic for the family and friends of the soldier, does not by itself undermine the brave talk of progress. Nor does this latest loss of life change the fundamental calculation mentioned at the start: that the British public will not tolerate fighting in Afghanistan indefinitely, but will surely react harshly if the end is a scramble into chaos that mocks all the lives shed to date, both foreign and Afghan. It is not even clear how the British public will react when they realise that an exit strategy depends on talking to the Taliban. Since Mr Cameron took office a year ago, the British government has talked about Afghanistan almost exclusively as a security challenge, and dropped the talk that could be heard in Tony Blair’s day about the moral cause of freeing Afghans from Taliban oppression, helping Afghan girls attend school and other aspects of nation-building. In Afghanistan today, Mr Cameron talked of a campaign that had entered a new phase. “We are not here to create a perfect democracy, we are not here to create a perfect country,” he told a gathering of American marines and British troops this morning.

    Asked about this later, the prime minister said the conflict in Afghanistan had possibly begun with expectations set at an unrealistic level. Then the start of war in Iraq had distracted the allies. Now, he suggested, such distractions were in the past. The overwhelming goal was now one of securing national security by denying terrorists the chance to open training camps in Afghanistan. That would require a strong army and police force, a central government able to extend the basics of governance to the provinces and good relations with Pakistan. At the same time, he conceded, it can be “hugely helpful” to win hearts and minds by helping girls to school, or by helping farmers get their goods to market. But there was a clear hierarchy of policies, he said, with security first.

    It was a vintage display of Cameronian foreign policy: something that looks like realism but which is on closer inspection a low-ambition variety of optimism.

    Will it do, as a strategy to reconcile the British public to a war of which they are thoroughly tired? Mr Cameron has given his troops, and the Afghan government, until the end of 2014 to bring this conflict to a formal end (though as one American colonel told me at Camp Bastion, after building two, 10,000-foot runways at that camp and laying reinforced concrete roads, “you gotta think” the outside world is planning to stick around for a while).

    It will not feel like a satisfying end for any of those involved, but for Britain at least, it will feel like an ending. Perhaps that will do.

  • Immigration to Britain

    Blaming foreigners for being employable

    Jul 1st 2011, 23:10 by Bagehot

    THE Conservative work and pensions secretary, Iain Duncan Smith, is in the headlines for urging British businesses to hire British workers rather than immigrants. Mr Duncan Smith has been praised to the skies by the Daily Mail (front page headline: "Minister who dares to speak the truth") and criticised by business groups who quickly responded that employers were not to blame for the poor skills and bad attitudes of too many young people emerging from the British education system.

    Read charitably, Mr Duncan Smith's remarks were less inflammatory than the headlines. After all, he notes that "of course immigration plays a vital role in our economy when it fills a clear gap in skills".  Read quickly, and he is merely asking businesses to give British workers the same breaks as foreign workers, and noting that his elaborate welfare-to-work reforms will be undermined if employers shun unemployed British applicants.

    But read Mr Duncan Smith's remarks carefully and they are less neutral than they at first appear (frustratingly, the full speech is not on his department website yet, nor the Conservative website, nor even the website of FAES, the Spanish think tank to which he gave the speech). For all his talk of only seeking a level playing field for native applicants, I think he is hinting that employers are unreasonably shunning Britons. He does not want a level playing field, in short, he wants protectionism (and hang the consequences for struggling British businesses).

    Consider these extracts:

    Even as our economy starts to pick up again, and jobs are created, there is a real risk that young people in Britain won’t get the chances they deserve because businesses will continue to look elsewhere to fill their posts...

    government cannot do it all. As we work hard to break welfare dependency and get young people ready for the labour market, we need businesses to give them a chance, and not just fall back on labour from abroad...

    good immigration is managed immigration – it should not be an excuse to import labour to take up posts which could be filled by people already in Britain. That’s why we must take tough action on this to tighten the rules on immigration across the major entry routes – work, student visas and family settlement – so that only those who have something clear to offer to the UK are able to come in

    That looks neutral enough on first reading. But it is not. Consider that phrase "posts which could be filled by people already in Britain". If the posts could be just as successfully and competitively and productively filled by British applicants, they would be. Instead, British employers complain again and again that they find school-leavers are worse than, say, Polish workers when it comes to punctuality, taking sick leave, numeracy, literacy and customer service skills, and plead with the government to improve schooling. Second, the right "people already in Britain" might be foreign nationals, but I don't think Mr Duncan Smith is using the phrase that way. I think he is implying that British nationals are being pushed to the back of the queue.

    It is the same with this call for immigration controls designed so that "only those who have something clear to offer to the UK are able to come in". That sounds reasonable, except that actually he is also cross about immigrants with so much to offer that they routinely outdo British applicants for British jobs. By his own logic, an immigration system that allows in only highly employable foreigners would still not be strict enough.

    I have a final beef with this speech. Mr Duncan Smith, being a man who lives in the real world, knows that any number of laws, both European and domestic, prevent British employers from discriminating on grounds of nationality. So he is calling for something that is not going to happen and cannot happen. And yet lots of newspaper readers and viewers of television news are going to come away with the impression that Mr Duncan Smith is saying that this will or should happen: he is after all the work and pensions secretary. When they are inevitably disappointed, their frustration with the political classes can only grow.

  • Austerity Britain

    The awful lesson of the 1980s

    Jun 30th 2011, 16:37 by Bagehot

    FROM Bagehot's office window, the usual view of Parliament and the London Eye is accessorised by hovering police helicopters: the tell-tale sign that demonstrators are marching on central London again. Today, it is the turn of teachers and other public sector workers, out on a one-day strike to protest against changes to their retirement benefits. Do the public support the strikers? The opinion polls are confused, to be honest: there are polls that show majorities supporting the right of teachers to strike over pension rights, but polls also showing opposition to this particular strike over pension rights. For the moment, the consensus among the big parties at Westminster is that the trade unions are making a mistake, though many wonder if the government will also start to get the blame if rolling strikes start to cause serious disruption in the autumn.

    There is a lot of talk about the 1980s in the air. Leftish types accuse the government of trying to complete the wicked work of the Thatcher era, while voices on the right thunder about the need to get really tough with the unions and tackle fat cat, militant union bosses. As so often, when industrial tensions rise, the spectral figures of Margaret Thatcher and Arthur Scargill seem to hang over the political landscape, and memories of the 1984 to 1985 clash between the then prime minister and miners' union leader. Are the 1980s coming back? I think not, is my hunch.

    For this week's print column, I talked to people who remember the tumult of the 1980s well, whether as politicians or as participants in the strikes of the era. They have no desire to return to that turbulent decade, and all said that they felt what was happening now was very different. As part of my research, I visited the former mining town of Mexborough, in south Yorkshire. It is deep-red Labour country: the local MP is Ed Miliband, and the great majority of people I spoke to said they backed the June 30th strikes, if only out of instinct as trade union members. But they were also anxious that the unions would trigger a public backlash. You need the town to be 100% behind you to strike, and this town is split, one shopper said, and many others echoed that view.

    Parents were irritated at having to find childcare for their children who could not go to school, I was told. There was sympathy for teachers and public sector workers, whose work was seen as badly paid and stressful (you know what little thugs kids are nowadays, more than one local said, with feeling). But at the same time, a lot of people volunteered the thought that "everybody knows" that there do need to be cuts, because the country went "spending mad", as one man put it. The core message of the coalition government about the importance of deficit reduction resonates, even in staunch Labour country.

    Here is the column:

    TO THIS day, two historical shadows loom over English towns such as Mexborough, a former mining town in the Labour heartland of south Yorkshire. The spectres are of two living but long-retired enemies: Margaret Thatcher and Arthur Scargill, respectively the former prime minister and a miners’ union leader whose clash during the miners’ strike of 1984 and 1985 was a turning point in British industrial relations.

    Mexborough will shed few tears when Lady Thatcher dies, says Howard Lawton, a former steelworker shopping in the high street, a bleak strip lined with charity and discount shops and stores offering payday loans. The former prime minister destroyed British industry to crush powerful unions, Mr Lawton charges, above all Mr Scargill’s National Union of Mineworkers. Like most Mexborough locals Bagehot interviewed this week, he backed a big national strike called for June 30th by teachers and other public-sector unions against changes to their pensions and a rise in their retirement age to 66.

    Trade-union loyalty runs deep in Mexborough, whose local MP is Ed Miliband, the current Labour leader. So does a sense of physical solidarity. In Mexborough, 66 is old. The high street whirrs with electric three-wheeled scooters, carrying stick-thin ex-miners looking a decade older than their years. “People aren’t going to get to retire,” predicts Christine Barker, a former dental receptionist. Alan Hinchcliffe, a retired lorry driver now hunched in a scooter, fag in hand, rasps: “They didn’t complain about the people dying young in the mines and steel works, did they?”

    Yet Mr Scargill—whose obduracy and militancy led his miners to crushing defeat—also haunts Mexborough. Backing for the strike is frequently tempered with anxiety that it will do no good. An ex-miner (“ten years down the Manvers pit”) worries that public-sector unions are making a grave mistake. “In the ’80s we had the miners’ strike, and what came out of that? Nothing.” Even John Coward, the local divisional secretary of the National Union of Teachers, one of the unions behind the June 30th strike, admits that securing public support is a challenge. The 1980s are remembered with bitterness, not triumphalism, he says: the era is seen as a civil war, “and a civil war that we lost”.

    Such wary, painful memories extend far beyond spots like Mexborough to the seat of power in Westminster. Memories of the Thatcher-Scargill conflict divide British politics to this day, pushing some towards cautious pragmatism, and away from extreme partisan positions.

    The cautious camp includes David Cameron, the prime minister. Allies stress that he is “not looking for a fight” with public-sector unions. They point to his choice of a former Labour cabinet minister, Lord Hutton, to advise the government on pensions reform. History makes Mr Miliband cautious, too. He called the June 30th strikes a “mistake”, and declared his party to be on the side of parents trying to send their children to school: an act of defiance towards the unions that provide most Labour Party funds. For Mr Miliband, says an aide, the 1980s are shorthand for a Conservative government and a trade-union movement both “hellbent on confrontation”, with the public paying the price.

    Yet the cautious do not have it all their own way. There is a second camp that is happy to use the 1980s as a purely partisan call to arms. Andy Burnham, Labour’s education spokesman, told the House of Commons before the June 30th strikes that parents would blame the government if the dispute with teachers returned the country “to the 1980s”. Dave Prentis, leader of the largest public-sector union, Unison, accuses the government of “cutting further now than Thatcher dared”. Mark Serwotka, boss of the Public and Commercial Services Union, which represents civil servants, recently praised Mr Scargill’s “bravery”.

    On the right, Boris Johnson, the Conservative mayor of London (and a man whose ambitions may one day include a stab at his party’s leadership), called the government “lily-livered” for declining to consider a new law making it harder to call a strike. The Tory right cheered, knowing which alternative, non-lily-livered model of prime minister he had in mind.

    A slew of conflicting polls suggest that voters are unsure what to think, backing the right of teachers to strike for pensions, but also supporting tougher strike laws. As spending cuts bite, and anger swells, pressures can only grow on the cautious camp.

    They were there

    But it has one great strength. Many who remember the 1980s best have no desire to revisit that decade. Eric Pickles, now the Tory communities and local government secretary, was a politician in the northern city of Bradford in the 1980s. He is a devoted Thatcherite, with a portrait of his heroine in his office. But, he says, some communities “sort of disappeared from the map” after the miners’ strike. Some Tory activists are gung-ho about the miners’ strike, but he is not, saying: “I find the most visceral were children then, or not even born.” Lord Kinnock, the Labour leader from 1983 to 1992, calls the Thatcher government “loathsome” for appearing not to “give a damn about the consequences” of wrenching economic change. But he blames Mr Scargill for refusing deals that could have saved some profitable mines. “Thatcher and Scargill deserved each other, nobody else did,” he says.

    The 1980s, in some parts of Britain, did feel like a civil war. It was one that the Thatcher government had to win, and victory ended decades of national decline. But after a civil war, nobody decent should celebrate. The British people sense this instinctively. The government is right to be cautious: the current mood of public calm is a small miracle. Some unions seem bent on confrontation, alas. They should beware, and leave the 1980s, an unhappy decade, to its ghosts.

  • British education

    Wanted: a schools revolution

    Jun 24th 2011, 11:59 by Bagehot

    THIS week's print column looks at the coalition government's schools reforms, and wonders: why is nobody willing to talk about the private-state divide, how shamefully wide it is, and whether there is anything that reformers can learn from the private sector?

    IF A big test of a reforming minister is telling painful truths about failing public services, Michael Gove, the education secretary, has the makings of a bold reformer. But with a bit more courage, he could transform not just England’s schools but the country.

    In a recent flurry of interviews and speeches to press the case for change, Mr Gove, a Conservative, has declared public examinations “discredited” by years of grade inflation. He notes that, in international surveys, English school results have stagnated while others have leapt ahead (and this after a decade in which the previous, Labour government almost doubled school spending per pupil). Only about half of English pupils achieve a decent pass in English and maths exams for 16-year-olds, Mr Gove notes: in Singapore, the proportion is four in five. In the last year for which there are figures, he laments, just 40 out of the 80,000 poorest English school pupils (defined by access to free school meals) made it to Oxford or Cambridge University. In short, he rightly says, the status quo amounts to a “moral failure”.

    Understandably, most attention to date has been drawn by Mr Gove’s plans to raise standards in the worst-performing schools—notably by a dramatic expansion of the “academy” programme begun by Tony Blair’s government. Modelled on the “charter school” movement in America, the academy programme frees headmasters from local-authority control, giving them greater powers to hire and fire staff and to design their own curriculums.

    Yet Mr Gove’s candour fails him when it comes to another way in which English education is an international outlier. The country is not just home to many struggling schools; it is also home to some of the world’s best schools—which are private. Yes, England is put to shame by Singapore. But England has its own Singapore: a private sector in which more than nine in ten pupils achieve Mr Gove’s decent pass in English and maths.

    Leading private schools do even better. In the process they offer compelling evidence for the thesis that public exams, such as the GCSEs taken at 16, have been dumbed down. Defenders of the exam system say pupils work harder and teachers teach better nowadays. Well, take Westminster, a London school (full disclosure: Bagehot was a pupil). The boys were appallingly competitive and the teaching excellent 20 years ago; both remain so today. In 1994 21% of GCSEs taken at Westminster secured the top grade, A*. By 2004 the share of A* grades was 59%, and in 2009 hit 82% (at which point Westminster switched to different exams).

    Such startling results should trigger curiosity, you might think. Alas, the private sector has until now been largely excluded from a broader national debate about education by questions of class, wealth and privilege—a toxic and very English mix.

    Lose that old school tie

    The coalition government is “terrified” of being seen publicly championing anything offered by private schools, says a close observer of Conservative education policy. David Cameron (a product of Eton and Oxford) has conspicuously chosen to send his children to state-funded faith schools, as has his Liberal Democrat deputy Nick Clegg (Westminster and Cambridge). Mr Clegg has berated Oxbridge for admitting too few state pupils. Otherwise, the subject of fee-paying schools is mostly avoided.

    On the left, too many assume that private-school success is a distasteful irrelevance, which cannot be reproduced elsewhere. In his recent memoirs, Tony Blair (educated at Fettes, a Scottish private school) recalls fierce rows with Labour colleagues unwilling to consider why private schools worked, beyond a conviction that schools with wealthy, middle-class parents, admission by academic selection and nice facilities were bound to succeed.

    Nationally about 7% of children are privately educated, but in affluent areas with a shortage of good state schools such as central London, almost 20% of secondary-age children go private. That is a huge vote of no confidence in the state. Critics assume that private parents are rich snobs trying to avoid the lower orders, says Anthony Seldon, headmaster of Wellington College, a boarding school. Not so, he says: many parents make sacrifices to pay school fees, remortgaging houses or asking grandparents for help. Many would love to find excellence in the state sector.

    And therein lies a glimmer of hope. Without much fanfare, a pioneering band of schools are slowly eroding a barrier between state and private education that Mr Seldon calls “the biggest wasted opportunity in Britain”. Wellington College is one of half a dozen private schools now sponsoring state academies. Ancient bodies such as the Haberdashers’ and the Mercers’ companies are building networks of private and state schools. A consortium of state and private schools is planning a sixth-form college in the East End of London to get gifted students into good universities.

    Mr Gove preferred this week to talk up schools being planned by parents’ groups and Everton, a football club. But his junior ministers have offered private-state partnerships discreet support. What Lord Adonis, a former Labour schools minister close to Mr Blair, called the “educational DNA” of the best private schools—independence, restless innovation, an impatience with excuses for failure and the unabashed pursuit of excellence—can be seen in a growing number of new academies.

    A thousand flowers are at last blooming in English education, and the most imaginative private schools want to play their part. Educational apartheid is one of the craziest aspects of modern England. Even if the private-state divide can only be narrowed, the country would be changed greatly for the better.

    If Mr Gove can improve the worst state schools, he will go down as a great reformer. But he should be braver still. If he can detach academic excellence from the national obsession with poshness, he will be remembered as a revolutionary.

     

     

     

  • Britain and the EU

    Nobody likes a back seat driver

    Jun 23rd 2011, 12:50 by Bagehot

    TODAY's Financial Times carries a letter from 14 Conservative MPs elected in the 2010 intake, who—the FT reports—are trying to create a new moderate school of Euroscepticism. The lead author, Chris Heaton-Harris, is a man to watch. He is a former member of the European Parliament and thus unusually knowledgeable about the workings of the European Union, while his robust dislike of European integration gives him credibility with his peers, who are probably the most Eurosceptic cohort of Tory MPs ever. I would not be astonished to see him in government before many of his contemporaries.

    Bear with me as I quote from the letter at some length: it captures perfectly the mood among many MPs, I think.

    Basically, it makes three points:

    1. So far, Britain has "taken a back seat in the crisis affecting the eurozone". This needs rethinking because—through membership of the EU and the International Monetary Fund, and bilateral loans to Ireland—British taxpayers are "underwriting some €14bn in loan guarantees to Greece, Ireland and Portugal". Britain needs to move from the back seat and seek more control because:

    the solutions to the crisis proposed by eurozone countries amount to no more than “throwing good money after bad” and will further expose the British taxpayer to any future economic meltdown." [Thus Britain should] "take the taxpayers’ side in resisting further bail-outs".

    2. What is more, Britain should be more active because a meltdown of the euro zone as a whole would be unbelievably scary and expensive, or as they write:

    New research by Open Europe shows that the UK now has an exposure to the eurozone of over €700bn, mostly via our banking system, €300bn of which is to the weaker eurozone economies.

    3. The euro crisis leaves continental partners at our mercy, so this is a splendid moment to push for the things Britain has long wanted from the EU, namely a free-trade area with more liberalisation and less integration, and a smaller budget for the EU while you are at it. Or as they write:

    The crisis affecting those countries that use the euro has created a political vacuum at the heart of Europe which we believe the UK government can use to shape the EU’s post-crisis order. In particular, the government must take a tougher approach than its predecessors, including the use of our veto to extract significant concessions. Ultimately, the UK needs to develop a bold new EU strategy aimed at changing Europe into a more competitive, vibrant and accountable trade bloc. We must take the taxpayers’ side in resisting further bail-outs and pushing for wide-ranging reform consistent with the liberalisation of trade, the principle of subsidiarity and the wholesale reduction of the waste for which the European Commission is responsible. Above all we must start getting some value in return for the significant sums that UK taxpayers contribute to the EU’s budget.

    The thing is, I am not sure how points 1, 2 and 3 hang together. Point 1 is that Britain must take a grip because it already risks losing some portion of €14 billion in the event of a default by a struggling euro zone member, and so should resist increasing that exposure by insisting on an end to bail outs.

    But Point 2 implies that Britain's potential losses from bail outs, though very annoying for a country that always thought the euro was a duff idea, are probably smaller than Britain's potential losses in the event of a euro zone meltdown. I draw this implication from the fact that 300 is a bigger number than 14 (and 700 is bigger still, should the entire euro zone melt down). So if Point 1 is "leave the back seat, grab the steering wheel and demand an end to bail outs", it seems an odd omission that the letter should say nothing at all about how the authors would save the euro zone from a meltdown, in the absence of the bail outs that annoy them so much.

    Now, please don't start accusing me of saying that the euro is in good shape, or that Greece should have been allowed to join, or that the bail outs agreed so far are doing anything other than kicking the can down the road and hoping that—by lessening the intensity of the fiscal adjustments needed in countries like Greece—those bail out loans may increase the chances of Greece recovering. I think the euro zone is in terrible shape, and that the next step needed is probably as orderly a default as Greece can manage, given that its national debts are unsustainably huge.

    But if you believe, as the 14 MPs do, that bail outs must stop now because they are throwing good money after bad, are you saying that the collapse of the euro zone periphery is inevitable? If you are saying that, and if (as per Point 2) you think the collapse of the euro zone periphery could cost Britain some chunk of €300 billion, then the losses mentioned in Point 1 start to seem a little beside the point, no?

    Because Point 3 is certainly not a solution to meltdown in the euro zone. It is a perfectly sensible shopping list of all the liberal measures that Britain has wanted to impose on its European neighbours ever since it joined the EEC, preceded by a false assertion that there is currently a "policy vacuum" in the EU, which a British shopping list might fill.

    There isn't a policy vacuum in the EU just now as a result of the euro crisis. There is a vacuum when it comes to attractive scenarios for the euro zone. There is a striking absence of policy ideas that are appealing.

    But if you follow the news from Brussels, Frankfurt, Paris, Berlin and so on, you can see there is a positive abundance of policy suggestions out there. These proposals include calls for a European finance minister with powers to oversee national budgets, the launch of eurobonds to allow users of the single currency to pool their borrowing costs, and the rescue of the periphery through a fiscal transfer union accompanied by European taxes and an increase in the EU budget to 20% of GDP (up from 1% now). All those ideas would be anathema to the British government and indeed to me. But that does not mean they do not exist.

    What the letter-writers are really saying is that they think that all the ideas in circulation sound stupid and offensive, are doomed to fail and in the process risk costing Britain money. But Point 3 clearly also recognises that some new mechanisms or structures are on the way, at which point Britain will have to give its approval, at which point Britain will have a veto, at which point the MPs think Britain should push for all the things it has always wanted.

    But here's the thing. Here is how this risks looking for the other 26 members of the EU. The euro house is burning down (because stupidly it was partly built of straw and lit with candles), and so its 17 owners now want to spend lots of money on a fire engine. Britain (whose banks loaned an alarming chunk of the original money for the construction of the straw house) thinks a fire engine will not change the fact that the euro house is flammable, so is refusing to put any money into the fire engine fund.

    But because Britain will have a vote in the group discussion on buying a new fire engine, the 14 MP letter-writers think this would be a brilliant moment to interrupt proceedings and demand that the owners of the straw house join a gym and lose weight, as Britain has so often advised before.

    As I said above, don't start accusing me of defending the construction of the current euro zone. But if the proof of the 14 MPs' moderacy is their acceptance that a collapse of the euro zone would be a bad and dangerous thing (as opposed to a source of pure celebration, as it is for some ultras), then they have to explain, surely, what they would do to save it. This letter does not amount to that explanation.

  • The prime minister

    David Cameron says U-turns are a sign of strength: nobody sniggers

    Jun 21st 2011, 22:07 by Bagehot

    DAVID CAMERON summoned the press to Downing Street today to hear the latest in a series of policy about-turns, this time the abandonment of a plan to offer criminals a 50% tariff reduction on their sentences in exchange for a swift guilty plea. On paper, it was something of a humiliation for the prime minister, marking the latest in a lengthening string of U-turns and the latest to appear driven, at least in part, by ferocious lobbying by the tabloid press.

    Within the Westminster village, there is convincing talk of weakness, and a prime minister who was too hands-off for too long, allowing ministers to dream up policies that fell apart under public scrutiny. Alternatively, within the same Westminster village, there is convincing talk of a prime minister who is worryingly quick to hang his own ministers out to dry when it suits—after all, it is noted, Mr Cameron had given the sentencing policy plan his approval (not least because it promised hefty savings on the prison budget at a time of tough spending cuts).

    Away from the muttering and grumbling, in the full glare of the cameras, a strikingly confident Mr Cameron told the press that he was proud to lead a listening government, and that U-turns were in fact a sign of strength. Nobody sniggered.

    Tonight, Bagehot popped into the summer drinks party of Policy Exchange, a centre-right think tank. Mr Cameron was the guest of honour, and gave a short, polite speech about the great influence that Policy Exchange has on his government. Nobody sniggered there, either.

    Now, away from the speech, and as the Pimms and little sausages on sticks circulated, there was talk of U-turns and whether they matter. But at a much simpler level, I was struck by the fact that Mr Cameron was not a figure of fun, nor did he seem diminished in the eyes of the watching MPs, policy types and reporters. True, a Policy Exchange party is a pretty friendly event for Mr Cameron: the think tank is the main ideas factory of the modernising wing of the Tory party that he has made his own, and Mr Cameron was close to the think tank from the start.

    But there is an indefinable quality that some senior politicians have that is separate from ideology, and instead has more to do with their ability to inspire deference and even fear in the political and media machine around them.

    It is not quite respect. I was a reporter for a British daily paper in Washington DC during the presidency of George W Bush, as the invasion of Iraq unfolded and the war on terror raged. I was only an outside observer, but a good proportion of the White House press corps, it was pretty clear, instinctively disliked the president and distrusted his motives and methods. But he was still a frankly intimidating figure to them. The press corps covering Nicolas Sarkozy is full of people who loathe the president of France: but they are also somehow scared of him.

    Nor do I mean power, in the sense of the power of a prime minister or president who is likely to be in office for some years yet. John Major was prime minister for more than six years, but he was treated with more or less open derision by the press and much of his party for much of that time.

    Yet fear does not capture it, either. Gordon Brown was an intimidating figure before and during his time as prime minister, a brooding man surrounded by vengeful and aggressive allies. Yet he had only been in Number 10 a short time when he began his journey from "Stalin to Mr Bean", in the celebrated phrase of Vince Cable, a Liberal Democrat MP, and his public image was suddenly all about indecision and eccentricity.

    Walking back to the office across St James's Park I pondered the word I was after. David Cameron is a highly professional politician who is still exceedingly easy in his skin, who wears high office with ease and confidence. For all his remarkable and much remarked-on good manners, he conveys just a hint of bullying menace about him, too.

    He is in his pomp, I decided.

    It cannot last forever, and doubtless in a few years the press will have sensed blood and will be tearing Mr Cameron to shreds like his predecessors. But for now, though Westminster's head says Mr Cameron has had a wobbly few weeks and days, I think its heart is still a bit impressed by this prime minister.

  • The euro crisis

    Beware Eurosceptics bearing gifts

    Jun 20th 2011, 22:27 by Bagehot

    HURRY up and die. Make no mistake, that is the sub-text of the messages being sent to Greece by British Eurosceptic politicians, under the guise of sympathetic noises about how Greece is being burdened with unpayable debts by a heartless Euro-elite.

    At an emergency debate today in the House of Commons, several MPs shared their confidence that the single currency is doomed in its current form. Jack Straw, the former Labour foreign secretary, told Parliament:

    Instead of sheltering behind complacent language and weasel words that we should not speculate, the Government should recognise that this eurozone cannot last. It is the responsibility of the British Government to be open with the British people now about the alternative prospects. Since the euro in its current form is going to collapse, is it not better that that happens quickly rather than it dying a slow death?

    Here is Richard Shepherd, a veteran Tory Eurosceptic MP:

    Mr Richard Shepherd (Aldridge-Brownhills) (Con): The eurozone was never an optimal currency zone. It is predicated on a treaty arrangement that calls it irrevocable and irreversible. We should never have accepted the hubris contained in those phrases, which brought about the passage of the Maastricht Bill and the current situation. This Government and this country should not be involved, and it would be helpful if we said what everyone in the press now says: this arrangement cannot survive in its current form. The hubris of those politicians who led the poor Greeks and all those who believed in this arrangement should be exposed as such

    Douglas Carswell, another Tory ultra when it comes to Europe, called on the government to agree that the International Monetary Fund should oversee a Greek decoupling from the euro, followed by a default on its debts. Another Conservative MP, Anne Maine, called for Greece to be "put out of its misery", adding:

    no more of our public money should be sent abroad to Greece, even through the IMF. There are riots on its streets. Its people do not like the medicine being offered to it, and we cannot expect it to take any more. Let it depart peacefully from the euro. It cannot be sustained as it is; it is just good money after bad

    Building on the "poor Greeks" line, the Tory mayor of London, Boris Johnson, chose the euro crisis to remind his many fans among the Conservative grassroots that he is (a) a classical scholar, (b) Eurosceptic and (c) more robustly right-wing that his party leader, David Cameron. Writing in the Daily Telegraph, Mr Johnson declared this morning:

    For years, European governments have been saying that it would be insane and inconceivable for a country to leave the euro. But this second option is now all but inevitable, and the sooner it happens the better. We have had the hamartia - the tragic flaw in the system that allowed high-spending countries to free ride on low interest rates. We have had the hubris - the belief the good times would never end. We have had nemesis - disaster. We now need the anagnorisis - the moment of recognition that Greece would be better off in a state of Byronic liberation, forging a new economic identity with a New Drachma. Then there will be catharsis, the experience of purgation and relief.

    I don’t believe that Greece would be any worse off with a new currency. Look at what happened to us after we left the ERM, or to the Latin American economies who abandoned the dollar peg. In both cases, it was the route to cutting interest rates and export-led recovery

    Enough with the phoney philhellenism. Read on, and you get to Mr Johnson's conclusion:

    The euro has exacerbated the financial crisis by encouraging some countries to behave as recklessly as the banks themselves. We are supposedly engaging in this bail-out system to protect the banks, including our own. But as long as there is the fear of default, as long as the uncertainty continues, confidence will not return across the whole of Europe - and that is bad for the UK and everyone else.

    It is time for a resolution. And remember - if Greece defaults or leaves the euro, then we will not see that UK cash again. Indeed, we are more likely to be repaid in stuffed vine leaves or olive oil than we are in pounds or euros. We should stop chucking good money after bad

    We are back with our old arguments about Britain having to guarantee bail-out funds for euro-zone countries, in this case Greece via Britain's membership of the IMF (Britain is not involved in a separate EU-organised series of loans from European governments to Greece). The sceptics filled with sympathy for Greece and so excited about its prospects with a new currency are in fact mostly worried about having to put "good" British money into the "bad" eurozone.

    To be fair to the sceptics, several of their contentions are correct.

    Greece should not have been allowed to join the single currency. Even at the moment of joining, I have been told by senior EU officials, other European governments did not believe the Greek numbers purporting to show that they had met euro entry convergence criteria. Letting them in was a purely political decision, with the disastrous economic consequences we now see.

    It is also clear that Greece has no chance of paying back the crushing burden of sovereign debt that it already owes, and that offering Greece further bail-out funds is no more than a ploy to kick the problem down the road, as European finance chiefs fret about the potential losses to European banks, and politicians agonise over a set of unpalatable choices.

    Finally, it is true that the brutal austerity measures being imposed on Greece are choking off growth, making it even less likely that the country can pay it own way out of this crisis.

    Greece will end up defaulting on its debts in some form, and if that default is messy and uncontrolled, there are scenarios in which the country could end up crashing out of the single currency.

    But where do British eurosceptics get their certainty that Greece would do well to crash out of the euro as soon as possible? They talk cheerily about Greece bounding back to health once it is freed from the straitjacket of the euro. Mr Johnson told television cameras Greece stood to enjoy a nice export-led recovery once it started printing new drachmas, triggering a rapid devaluation. "Bob's your uncle," he said. Other commentators have talked about how Greece would be a nice, cheap holiday destination once it used devalued drachmas.

    But this cheeriness ignores some rather painful problems.

    1. Greece is in a mess not simply because it borrowed too much. It is in a mess because it spent a decade enjoying the easy life that came with low, Germanic interest rates, and did more or less nothing to equip its economy or labour markets to compete with its new currency-mates in the eurozone. Before the euro came along, Greece was a serial devaluer of the drachma, but the effect was not to turn Greece into a lean, mean competitive economy. The effect was years of painfully high inflation (topping 20% at several points in the 1970s, 1980s and 1990s), sky-high interest rates (routinely reaching double-digits) and endlessly eroded savings. Put Greece back on the drachma and its economy would still be a sclerotic, unreformed mess.

    2. While it is true that each new bail-out is only postponing the evil day when Greece has to restructure its sovereign debt, that does not mean that short-circuiting the whole process and crashing out of the euro now would be to Greece's advantage. Even if Greece were to declare it was not going to repay a penny and invite its international creditors to whistle for their money (as some protestors in Athens urge) the country is still broke.

    Strip out interest payments on its national debts, and the Greek government is currently running a hefty primary deficit: ie, it has to pay bills each week and month that are larger than the tax revenues it is able to collect (Wolfgang Munchau has numbers in today's FT). If Greece were to turn its back on its current arrangements with the EU, the IMF and the euro-zone, and yank out the life support tubes that connect its banking sector to the European Central Bank in Frankfurt, where would Greece get the money, tomorrow or next week, to pay the salaries of policemen, firemen or teachers, or pay pensions?

    Re-read the British MPs quoted above, and it is pretty clear that (for all that the sceptics yearn to be proved right in their contempt for the euro project), they have no intention of lending Greece a single penny should that country burn its bridges with Brussels and Frankfurt. The international capital markets are already effectively closed to Greece in anticipation of a default, so calling on them for help would not be much use.

    None of which is to say that Greece can avoid default at some point. Mr Munchau suggests a rational Greek who hates austerity might like to wait a couple of years and then default, assuming the country is running a primary surplus by then. Others may doubt that Greek belt-tightening will work by 2013.

    I am making a simpler point, that there are no happy, Bob's Your Uncle solutions out there, whatever British Eurosceptics pretend. Pretty much every option looks bad: the British should not be blinded by their hostilty to the single currency into imagining that a switch to drachmas would be a magic solution.

About Bagehot's notebook

In this blog, our Bagehot columnist surveys the politics of Britain, British life and Britain's place in the world.

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