Samizdata

You have to hand it to Peter Oborne, the newspaper columnist, for his ability to think several contradictory thoughts at the same time when writing for the need for the head of the BBC Trust, Chris Patten (a former Tory party chairman and Hong Kong governor), to resign over the Savile sex abuse scandal:

“And it is important that he [Chris Patten] goes very soon, because he is doing such damage to an institution that stands for everything that is best about Britain – integrity, fairness, and generosity. Above all, the BBC represents a common sphere of British public life which is not part of the marketplace, and yet not controlled by the state. Alongside Parliament, the NHS, the Army, the monarchy and the rule of law, it is one of our great national institutions.”

Well, if Oborne thinks that the BBC, an organisation that has the privilege of taking revenue in the form of a tax (the licence fee) levied on anyone who owns a television, regardless of their viewing habits, is a “great national institution”, and “not controlled by the state”, which is laughable, then how does he go on to say this:

“It is deeply unfortunate that, over the past few decades, the corporation has been colonised and captured by a narrow, greedy, self-interested and self-perpetuating liberal elite, ignorant of ordinary people and contemptuous of ordinary morality – hence, in part, the Savile affair. The unprincipled and arrogant conduct of that elite has provided a great deal of ammunition to the broadcaster’s enemies, such as the Murdoch press, and thus placed the BBC’s future in jeopardy.”

But if the BBC is a “great institution” – which I contest – then the fact that it has been “colonised and captured” by such terrible people must surely point to the problem that any state-privileged institution with certain monopoly powers, such as the BBC, can be captured by such people. The point is not to create such bodies with such privileges in the first place, since they almost always end up being captured or politically manipulated; or, to establish such powerful checks and balances that bad behaviour is rapidly dealt with. (In the case of the army and the legal profession, even they are not free of problems.)

The foolishness of Oborne is in his naïve belief that all that is necessary is for good and honest people to be put in charge of X or Y, and all will be well. The problem is not the people, but the monopolistic system in place. In all state bodies where an element of state privilege is involved, and where the competitive force of the market does not apply, the way to the top is often through political scheming rather than simple merit, although no doubt there are elements of meritocracy involved, at least in the early years of an institution when there is plenty of idealism in the air.

And the reference to the Murdoch media empire is typically misleading and gratuitous, since Murdoch has, in the face of the outrage about the behaviour of some of his journalists, shut down a newspaper (the News of the World), suffered major shareholder damage, and seen the potential breakup of his empire. Ask yourself this: in a year’s time, does anyone expect anything similar to happen to the organisation known, hilariously, as “Auntie”?

Needless to say, I should add that some of the same problems apply to the National Health Service, the UK’s socialised medical system which, despite some tweaks, still runs on the same quasi-Soviet basis as when it was created in the late 1940s. Savile was able, so it is alleged, to abuse young patients in at least one of its hospitals (Stoke Mandeville), and it is appalling that his activities were not stopped. I am not saying that a completely private medical system would be free of such monsters, but one has to ask whether the public’s almost religious view of the NHS, despite everything, is a hindrance to clear thinking about such matters.

Andrew Mitchell, the government enforcer, allegedly calls a policeman a “*u**i** pleb”. George Osborne, the finance minister, boards a train with a second class ticket and proceeds to sit in first class. MPs, of all parties, are found to be scamming the taxpayer by owning one house and living in another – no, I don’t understand how the scam works either.

So, why are we getting so many scandals now? Is it because this is a particularly bad time for it? I don’t think so. My guess is that the amount of obnoxious behaviour by politicians is more or less constant over time. The variable is the press.

Older readers, and those with a fascination for history, will remember the spectacular collapse of the Conservative government in the mid-1990s. Originally elected in 1979, for over 10 years there was an almost complete absence of sleaze stories. About the only one I can think off the top of my head was Dennis Thatcher’s use of No.10-headed notepaper. And then, all of a sudden, in about 1992 they all started coming out: cash for questions, three in a bed, secret love children, more cash for questions, affairs with actresses. Every day a new scandal.

As I said, it seems improbable that Tory MPs were for 10 years purer than the driven snow and then, all of a sudden, dropped all principle like it was a form of radioactive waste. No, what happened was they had always been acting like this; it was just that now the press started reporting it. And why now (or, is it then?)? Because of Black Wednesday. Black Wednesday – Britain’s forced departure from the European Exchange Rate Mechanism (ERM) in September 1992 – had demonstrated in the clearest possible terms that the government didn’t know what it was doing when it came to the economy. At that moment the press got angry. So long as they believed that these people knew how to ensure prosperity they were prepared to turn a blind eye to the odd peccadillo. But now they realised that they had been hood-winked. After that any Conservative was fair game.

Now, Cameron’s government has not had an ERM moment as such. But then again, it has never demonstrated any great degree of competence. Faced with the greatest economic calamity in living memory (or the Second Great Depression as Brian likes to call it) it has drifted and the press has started to notice. The feeling of hoodwinkedness and corresponding anger is now fully fledged. I unconfidently predict a stream of scandals until Cameron leaves office.

Police Taser blind man mistaking his white stick for a samurai sword

Rejoice! Ed Milliband will announce at the Labour party conference today that

Labour would impose a legal duty on any financial services firm that manages savings to maximise the saver’s returns.

At last Labour are to drop all that guff about “stakeholders” and “corporate responsibility”, although to make it compulsory to pursue profits at the cost of all else is rather repressive.

But what a turnaround, eh? Can it really be happening?

No. It’s all a mistake. They just haven’t noticed yet. Tim Worstall has cruel fun pointing out that Mr Miliband does not appear to have worked out that his proposal would make ethical investment illegal.

Worstall concludes

If those proposing the reform of the financial markets know so little about the financial markets that they can make this sort of mistake: well, what value their plans for reform of the financial markets?