Apr 2008 09

TPA Interviews…John Redwood MP8

John_redwood_2John Redwood, MP for Wokingham, has been prominent in the field of centre right politics since his days as Margaret Thatcher’s Chief Policy Officer, championing privatisation around the world. Since then he has been a cabinet minister, shadow minister and author – and is also one of Britain’s leading blogging MPs. He is currently Chairman of the Conservative Party’s Economic Competitiveness Policy Group.

John kindly agreed to be interviewed about TPA’s Better Government campaign, and the way in which we can improve how public services are delivered.

If you were in charge of any ministry which one would it be and why?

This is a matter for a future Prime Minister to decide.

What are the three most successful policies you can think of in the post war era?

Council house sales – giving many more people the opportunity to own a home of their own. It gave people pride in ownership, granted them freedoms to change their properties or to sell them and move somewhere else, and allowed them to acquire an asset which could be used to help  finance businesses or family  purposes.

Introducing competition into former public monopolies. In each case prices came down, innovation increased and quality went up. The transformation of telecoms thanks to competition made possible the growth of the City as the world’s leading financial centre. It is unlikely the City could have grown as well and as fast as it did if we had kept on with the inadequate and rationed phone system we experienced under a nationalised monopoly. The changes in electricity not only cut prices, but led to the UK hitting its Kyoto greenhouse gas targets thanks to the dash for gas replacing dirtier coal fired stations which the nationalised monopoly insisted on building.

Floating the pound. The UK economy suffered devaluation crises under Labour in the 1940s and 1960s, and suffered from the ERM crisis in 1992. In each case the requirements of the managed exchange rate led to  stop-go policies, wealth destruction and slower growth. Floating the pound removed that artificial constraint on economic growth and ushered in a more successful era for UK prosperity.

What are the 3 worst policy mistakes you can think of in the post-war era?

1. Nationalisation. The nationalisation of post, coal, electricity, phones, trains and other leading sectors held the UK economy back. The nationalised industries charged people more, provided a less good quality of service, and ended up sacking all too many of their staff. They did untold damage to labour relations, pillaged the taxpayer for subsidies to pay the losses, and did harm to customers.

2. Damaging the Bank of England in the 1997-8 reforms whilst wrongly claiming the government was making the Bank of England more independent. Gordon Brown took away the power of the Bank to manage public debt and to supervise the day to day activities of the clearing banks. This left the Bank without the minute by minute market information it needs to manage money markets well, and left the regulatory system much weakened to deal with a crisis when it struck. Unfortunately a crisis struck in the form of Northern Rock, the first time for well over a century that there has been a run on a UK bank.

3. Transferring too much power to the EU. The substantial transfers of power under Nice, Amsterdam and the proposed Constitutional reform Treaty represent a big change in how we are governed, shifting too many things from democratic control here in the UK to bureaucratic control in the EU.

Who do you think has been Britain’s most successful post war minister and why?

Margaret Thatcher, for reforming the trade unions, cutting the rate of strikes and improving labour relations, transforming the nationalised industries and selling Council houses. Her reform made the UK more a nation of owners, creating more families and individuals with a stake in the nation. It took  much of the bitterness out of industrial relations, and moved the UK on from strife to society where training, participation and ownership all had a stronger role to play in creating a unity of purpose between mangers and employees.

Who do you think has been Britain’s least successful post war minister and why?

James Callaghan, for presiding over the trip to the IMF to bail out the UK economy in 1976 and the  winter of discontent in 1978-9.

What do you think of moves by Gordon Brown and David Cameron to bring in outsiders to government?

Only Gordon Brown is able to bring outsiders into government. His moves have shown he needs to be much more careful if whom he chooses. Admiral West has made mistakes and had to execute a humiliating U turn about detention without trial, whilst the former DG of the CBI has peppered the record with all sorts of unhelpful comments about the government prior to taking office which makes it difficult for him to be effective within the framework of collective responsibility.

If you were Prime Minister who would you bring in from outside Parliament to help you and why.

I would use the talent available in Parliament.

Do you think it is important that ministers have experience in the subject area they are appointed to?

An experienced Minister can go to any department and succeed. Ministerial skills include understanding and handling Parliament, chairing meetings successfully, assimilating large amounts of complex information and reaching a decision, thinking sceptically about professional advice advanced and checking official advice against commonsense and the testimony of people outside government. The essence of being a good Minister lies in using the professional advice well, and keeping in touch with public opinion and Parliamentary pressures. It does make the job easier if you also happen to have professional expertise in the area of the department, but it is important not to cloud your general Ministerial judgement with your own professional judgement, as you are paying others to offer that.

What lessons do you think Britain can learn from other countries about the structure of government?

That those countries with the lowest tax rates and the best controlled patterns of government administrative expenditure perform better. We should learn from the experience of the richest countries of Western Europe, Switzerland and Norway, that keeping EU costs and demands down helps create a prosperous country. We need to negotiate a better deal for the UK within the EU to get closer to that enjoyed by Norway and Switzerland outside the EU.

What lessons do you think Britain could learn from other countries about how to deliver public services?

Where more choice, local determination and local management is allowed public services are better. The important thing is to ensure access to care or education using state cash to ensure fair access. It is not important to run or control everything in the state sector needed to provide the service.

If you were setting up a system of government from scratch would you choose the British model or that of another country?

I would choose to keep single member constituencies and a powerful Parliament elected by first past the post from the UK system. PR systems break the link between an MP and a particular group of constituents in a particular place, making MPs less accountable. It also encourages people to form more extreme parties, as PR allows them to get people elected to influence the policy of the resulting coalition government.

I would not want the EU to have such power over fishing and agriculture as granted by the Treaty of Rome nor such power over social and employment policy, foreign affairs, criminal justice and the other important areas that this government has transferred. Too many layers of government creates over-regulation, and blurs democratic accountability, against the interests of taxpayers and voters.

I would not allow regional government in England, as England does not break up into natural regions and there is no need for this unnecessary layer of government.

Do you think Britain can realistically move towards  such a  system?

Yes.

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  • Hardeep_Singh

    A commentary of common sense an alien concept in modern Britain. John Redwood shows just how far from the beaten track we are under Labour and the degree if not step change required to realign ourselves onto a course for prosperity. However I note that his comments were somewhat constrained understandably so in such a brief interview and failed to mention the maturing public sector burden on society. Nevertheless it’s always welcoming to hear someone speak sso refreshingly about what we really need to do for the sake of the nation’s future rather than their own political careers like so many of the Labour cabinet.

  • Robert Tressell

    Mmmm What a success Privatisation has been,wealth creation for the few at the expense of the many,we s pend more NOW on Northern Rock etc than we ever did on rescuing and supporting Nationalised industries!
    Mr Redwood is an old Thatcherite Elite preserver;He cant sing the Welsh anthem either.

  • Hardeep_Singh

    It was the Labour government that bailed out Northern Rock not the ghost of Margaret Thatcher nor did John Redwood have anything to do with it. If the Labour Chancellor or even the PM for that matter had any idea of what to do they would have executed a rescue much sooner than they did. Their lack of ability made an expensive situation into an unaffordable long term liability.
    The Welsh anthem doesn’t have anything to do it. As for the love of good old nationalised days remember British Airways in the 70s or British Leyland. The answer doesn’t like on either extreme but as with all things in life somewhere in the middle. We need to keep our minds open and receptive to arguments from all sides in order to arrive at a workable ‘balance point’. Different measures are required depending on the circumstances and I feel Joh Redwood was merely indicating some of those whilst reverting to some of the government recent shortcomings. There’s nothing wrong in highlighting the perceived mistakes of others, this is something that impacts real life, their financial security and future opportunity.

  • Robert Tressell

    Like i say,In the long term Privatisation benefits the few rather than the masses(Railtrack,NHS PFI,Large Utility profits while OAPs Freeze etc etc) and the chickens are coming home to roost;Mrs Thatchers legacy is one of Division,Selfish pursuit of Wealth and Material Gain,and destruction of our manufacturing base that we handed on a plate to those nice chaps in China.Mr Redwood was a part of that process,we should fear the Tories as they preserve the Elite more than anyone.

  • Steve Robson

    Thatcher’s government had so many terrible policies, it is hard to choose a top three, but I’d have to go for:
    1. Industrial restucturing without any idea of what to do with those restructured other than throwing them onto benefits and using the benefits system as an easy option and to mask unemployment. This created the destroyed communities and benefits culture we have today and all the associated problems and hopelessness.
    2. The sale of Council houses, which transformed mixed estates into sink estates and made social housing into a residual sector for the poor rather than a real housing option for all. Mixed with the benefits culture, this created all the problems we are now grappling with from knife crime to teenage pregnancy.
    3. Chronic underinvestment in public services, particularly training and infrastructure. Funnily enough that has led to a chronic backlog in trained personnel and the condition of the infrastructure. Only a Tory or a TPA moron wouldn’t see that one coming.
    4. The whole raft of racist, sexist and homophobic policies from Section 28 to the Nationality Act. Luckily since rejected my the majority who want to live and let live. Isn’t it funny how Tories can’t bear to see a minimum wage imposed, but are keen to regulate people’s sexual behaviour.
    Sorry, thats four, but it is hard to choose when so much damage was done in so little time.
    Well done John Redwood!
    Well done Maggie T! easily the worst Prime Minister ever!

  • Justin Graham

    It amazes me what economic naivety pervades our society by some of these comments. That’s probably the most clever part of the Blair-Brown legacy to spin the UK public that socialists are economically competent.
    Margaret Thatchers Government came to power in 1979 in a country which had seen economic decline for decades. The conservatives had a plan to turn around this economic decline which it achieved. It was achieved through the economy’s supply side being restructured to become competitive again. This was achieved through monetarism, privatization and the trade union controls.
    The conservatives real crime is that they did not restructure the supply side in how Government delivers our services. This is the reason the UK public have been duped into huge tax hikes to fund poor public services. Ask yourself where are the improvements in Education and Health with all the wasted billions of pounds ?
    Let’s just hope the British public wake up and vote for tax cuts and higher growth rates. This is now common wisdom in the US so why is it not here ?

  • Justin Graham

    It amazes me what economic naivety pervades our society by some of these comments. That’s probably the most clever part of the Blair-Brown legacy to spin the UK public that socialists are economically competent.
    Margaret Thatchers Government came to power in 1979 in a country which had seen economic decline for decades. The conservatives had a plan to turn around this economic decline which it achieved. It was achieved through the economy’s supply side being restructured to become competitive again. This was achieved through monetarism, privatization and the trade union controls.
    The conservatives real crime is that they did not restructure the supply side in how Government delivers our services. This is the reason the UK public have been duped into huge tax hikes to fund poor public services. Ask yourself where are the improvements in Education and Health with all the wasted billions of pounds ?
    Let’s just hope the British public wake up and vote for tax cuts and higher growth rates. This is now common wisdom in the US so why is it not here ?

  • Robert Tressell

    Moneterism,Trade Union Control and Privatisation are three of the reasons we are in the mess we are in my Thatcherite Friend;No regulation or limit on corporate greed,The Selfish Gene followed by Thatcher and now discredited by its mad inventor.Remember the Britain under the Tories?Give me Labour,even New Labour,ANYDAY!