Jan 2010 05

Well, it's the second day of the unofficial 2010 election campaign and already it appears that the Conservatives have pledged to create a new quango. In a speech today to the Oxford Farming Conference, Shadow Environment Secretary Nick Herbert is pledging to create a "Supermarket Ombudsman". Sigh. So much for a "bonfire of the quangos".

The basic idea of such an ombudsman is itself flawed – we don't need any Government representative to decide the terms of sale between farmers and supermarkets. As John Blundell of the IEA pointed out some time ago, we used to have centralised control of food prices in shops in this country as a hangover of World War One rationing – it was called Retail Price Maintenance.

What it produced was not some glorious paradise where every price was magically "fair", it produced a sluggish marketplace which restricted opportunities for shops and consumers alike. Amazingly, it lasted as late as the 1970s, until Ted Heath abolished it. (This, I must concede, deserves to go on the short list of "Good things done by Ted Heath").

What was the result of that abolition? Well, it allowed flexibility, competition and innovation in a way that hadn't been seen for decades. As a direct result, successful supermarkets sprang up offering new foodstuffs and cheaper prices – which have been of huge benefit to millions of consumers (and employees) since.

So the last thing we need is for that failed World War One policy to be reanimated. As much as people like to huff and puff about the "scourge" of supermarkets, in a manner reminiscent of Bremner, Bird and Fortune's dinner party sketches, they have prospered because they provide customers with things they want at an affordable price.

In effect, what we have today is the sight of a Shadow Minister a few months or weeks before an election, arguing that recession-hit Britons should be made to pay higher food prices. In short, not a great idea.

There is a much wider issue here, too. Even if such a policy was a good idea, it is wrong to create a quango to oversee it.

David Cameron said back in July:

The problem today is that too much of what government does is actually done by people that no-one can vote out, by organisations that feel no pressure to answer for what happens and in a way that is relatively unaccountable.

This is a big part of the reason why people feel so powerless in Britain today. They don't have enough opportunity to shape the world around them. And it leads to the anger, suspicion and cynicism that I described in my Open University speech.

I'm convinced that the growth of the quango state is one of the main reasons so many people feel that nothing ever changes; nothing will ever get done and that government's automatic response to any problem is to pass the buck and send people from pillar to post until they just give up in exasperated fury.

And he was right – so why on earth did this proposal even make it out of the starting gates?

Another example appears in yesterday's draft Tory Health Manifesto. Here is a selection of quotes about accountability, democracy, bureaucracy and so on (numbered by PDF page):

Page 4: "In the post-bureaucratic age people expect to be in control of their lives, not have their lives controlled for them by distant politicians and bureaucrats. We need a shift in power from the political elite to the man and woman in the street, through decentralising power, introducing a strong line of
democratic accountability, and bringing in a new era of transparency to government."

Page 5: "…we need to give people real power and control over their lives…"

Page 6: "A decade of top-down, bureaucratic mismanagement has consistently undermined the professionalism and motivation of NHS staff and skewed NHS priorities away from patient care…"

Page 7: "Instead of bureaucratic accountability there will be democratic accountability. We will decentralise power, so that patients have a real choice."

Page 8: "Our reforms will devolve decision-making closer to patients, removing the need for expensive layers of bureaucracy to oversee the NHS."

All good so far. But then…

To make sure the NHS is funded on the basis of clinical need, not political expediency, we will create an independent NHS board to allocate resources to different parts of the country and make access to the NHS more equal. (Page 8)

Eh?

So we have another new quango, explicitly designed to remove the people's control of how the biggest budget in British Government is spent. Of course, when you want to make democracy sound like a bad thing you call it "political expediency", rather than "accountability" as it was termed earlier in the very same document.

It seems that despite all the speechifying about the post-bureaucratic age, the Conservatives are yet to shake the temptation to slam everything into a quango and then wash their hands of responsibility. Not exactly change we can believe in.

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  • Steve Robson

    ha ha ha, so it wont all be paradise when your Eton rifle chums are in power!

  • thedarknight

    The reason is presumably Blond and red toryism. That part of the party – is it just Blond? – seems to think that if they put their guys in charge the same policies will bring about a Hobbit-esque utopia rather than a Sauron-esque socialism. They are wrong. Obviously.

  • http://profile.typepad.com/williambrinsmead Bill Brinsmead

    Retail Price Maintenance … “it lasted as late as the 1970s, until Ted Heath abolished it”.
    CHECK YOUR FACTS BEFORE POSTING
    Edward Heath reformed Retail Price Maintenance in 1964 when he was President of the Board of Trade in the Douglas Hume administration.

  • Barry Sheridan

    I cannot say I am surprised by the contradictions of our political class. They have neither belief or principle to guide them, only getting in office matters so they can pretend to run the nations affairs while still saving the world. Yet in truth the ugly reality is that they have made a complete horlicks of everything they have ever touched, and they want to interfere with farming and the supply of food. These people are mad!!

  • OldFella

    I thought the Tories were already planning another 17 quangos??
    You are right, we don’t need anymore, in fact let’s get rid of the lot of them as they only serve to drain the public purse of money that’s not there and actually produce very little of help to anyone – except themselves

  • Hardeep Singh

    It’s not the new quangos that are being created but more interestingly how many of the existing ones are to be abolished?
    As for Steve’s usual almost tiresome jibe about Etonian themes, please for the sake of God give it a rest.

  • http://sdj-pragmatist.blogspot.com Pragmatist

    Wouldn’t it be ‘greener’ to recycle Quangos before creating new ones? ;-)

  • Steve Robson

    I’m not giving it a rest Hardeep when soon we are to be ruled by these rich Eton toffs.
    I find it galling when a bunch of privately educated toffs like the TPA and the Con Party harp on about public services they never use and make up public sector rich lists to deflect attention from their own wealth.
    What a hero Cameron is taking a 5% pay cut when he’s got £30million in the bank. Or Matthew Elliot, Susie Squire and Andrew allum likewise, who probably have similar wads, not that they’re transparant enough to tell us.

  • Adam Wissen

    So the Tories aren’t going to usher in the anarcho-capitalist anti-state that you lot crave.
    Something to do with the fact that they would actually be accountable to people like farmers and you know, the rest of the electorate?

  • Blackadder2

    I don’t think the Tories are serious about abolishing quangos, as this suggests. I doubt the people proposing this have the slightest knowledge of Retail Price Maintenance as a historical fact, or the economic implications of it.
    Better to get government from supermarkets than supermarkets from government.

  • andrea billot

    While it is necessary for many of Brown’s “jobs for the boys” to be cut Cameron must show the “jobs for HIS boys” are also axed

  • http://profile.typepad.com/6p01156f88a0c8970c Graeme

    Steve – surely it’s to their credit that the TPA are critisising the Tories for this?
    I’m with the “abolish all quangoes” crowd. As for the NHS – surely there is already a CEO & board that are meant to ensure it’s run fairly & efficiently? Are they proposing sacking these?

  • Rowland Pantling

    In order to remove quangos, you have to remove the instruments that set them up in the first place. So, to get rid of the smoking ban, the relevant Act must be repealed; and so on for health ‘n safety, so-called racial hatred, sex discrimination, etc. Not one party suggests repealing previous ridiculous and unnecessary legislation. We are caught in the LibLabCon trick. To get out of it, vote for anybody else, preferably an independent, rather than a main party candidate. That will be the only way to get the change that we really want.
    We were and could be again self-sufficient in the supply of milk. We have the best farmland in the world for its production, yet we now have only 11,550 dairy farmers left compared to 28,000 in 1985. We are importing 1.5 million litres a day. The cost of a lump of cheddar has sky-rocketed. Therefore, contrary to my views above, something should be done to support our dairy industry. Bring back the Milk Marketing board!!

  • robin winston-smythe

    cameron is a shifty as his ”brushed”portrait on his election posters,paid for by tory hedge fund managers.
    lib-dems chief donor is in jail,michael brown 2.7m of investors money,they were let off by the corrupt electoral commission.
    labour still recycles”overseas aid”to certain union schools,aka ruskin college.
    its UKIP or genuine Independents for me,
    nobody will reform the lords.Quangos.lobbyists,MPS,MEPSA Pensions should not be underwritten by the taxpayer.

  • Colin C Bonner

    Planning New Quangos? they should be looking at scrapping ALL Quangos, they are all a duplication of some government department or another and so therefore should not be needed.
    Too costly and unaccountable, achieve nothing and are in most circumstances powerless.

  • Ian Harris

    Quangos were created so governments could avoid blame by devolving responsibility. Labour have stuffed them with left-wing aparatchiks – are they going to be got rid of?
    All the absurd equality/diversity/health ‘n safety:police who respond with alacrity at ‘pikey’ but won’t confront the feral gangs who roam our sink estates, and who threaten a woman waving a knife through a window at a couple of yobs trying to break into a shed:indiscipline in our schools: dumbing down exams – what a lot to put right. Has Cameron the balls to do it? One million extra public service employees under Labour – one million that should be got rid of.

  • YouKnowWho.

    We need our country back.
    LibLabCons are useless in defending our English heritage , vote for anybody else next time,please.

  • steve Palmer

    I read in the Telegraph on Thursday 14th that the Tories are planning to change the name of the “Dept of Health” to the “Dept of Public Health”. This is such a pointless wasteful New Labour type of exercise – how much time and money will this cost? New signs on offices,, new stationery, new websites etc. It really worries me if this is an example of how a Tory government is planning to behave