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The joys of regulation

From time to time (on this blog and in other places) I call for the abolition of the BBC. Often, someone smug and patronising in the comments will say something along the lines of “Only you heartless and uncultured libertarians would fail to realise that there are some worthwhile/needed/educational programs that will not be produced by the market.

My usual response to this is that we will never know, because the market has never been allowed to demonstrate what it might produce. I have written before about the weird history of British television and how owners of private television channels had little if any control of their own programming. But in some ways radio is even weirder. For one thing, there were no privately owned and/or commercially funded radio stations in the UK before 1973. There are many today, and some might argue that this proves some sort of market exists, but this is still a weird, weird world.

For instance, the highly self-important telecommunications regulator Ofcom, which helpfully “exists to further the interests of citizen-consumers as the communications industries enter the digital age”, made a particularly delightful ruling.

Ofcom staff listened to Bristol radio station GWR FM, and determined that 53% of the music it played was more than two years old. As a consequence, they threatened to take away the station’s licence and force it off the air. This is a commercial, privately owned radio station.

Really.

This should be a resigning issue

I posted this item almost as Brian hit the button on his own entry on the same subject. But I think it is worth a second bite at this cherry.

Great work by Fraser Nelson at the Spectator for revealing that Royal Bank of Scotland, which is now almost totally owned by the UK government, has been asking prospective clients about their political affiliations. The exact term is to ask whether a wannabe client is a “politically exposed person”. Now, this maybe more of a cockup than a sign of anything more sinister, so my trigger finger may be getting unnecessarily twitchy, but still. This is, as the commenters on the article Fraser writes says, a classic demonstration of why state-owned banks are bad and ripe for corruption. Special favours will be demanded by the ruling party’s clients. In France, remember, the former state-run Credit Lyonnais bank was a sink of corruption.

RBS is also the parent of Coutts, the private bank, and RBS Coutts, the international version of said. These banks provide clients with offshore accounts. The risk is that such a bank could be put under political pressure to deliver details about its clients, a fact that becomes particularly relevant with so many governments currently trying to shut down so-called “tax havens” such as Switzerland.

If it is the case that RBS has been trying to prize out details of potential clients’ political affiliations, then at the very least the management responsible for this dim-witted idea should resign. In fact, the Chancellor of the Exchequer, Alistair Darling, should serious consider his own position. On his watch, the once very solid, in fact gloriously dull, UK banking group Lloyds has been pressured into buying the debt-laden UK banking group HBOS. Result: Lloyds’ share price has crashed and most of that bank is now owned by the government. (Full disclosure: I bank with Lloyds).

Unbelievable.

Fraser Nelson supports bank regulation

Fraser Nelson:

Some of the worst events in history take place because no one is really in charge. That RBS could blunder their way into this is almost as scary as the idea that they did it deliberately. I accept it was a blunder: God knows, RBS has made enough of them already. But the banking industry should urgently review and clarify the way it handles the issue of “politically exposed persons.” No one in this country should ever again be asked about party political affiliation by their bank.

Fine prose, I think you will agree. At first I had in mind to make that first sentence there into today’s SQOTD. But think about it. To Nelson, it is obvious that nobody should “ever again be asked about party political affiliation by their bank”. Excuse me? If I am wondering whether or not to lend you money, I will ask you any questions I feel like asking, and if I don’t like the answers, then it will be no deal. If you don’t like me asking such questions, you are free to look elsewhere for the funds you want to borrow, even if I say yes. If you don’t like a bank you lend money to asking such questions, then don’t lend it to them. I am talking about the right to discriminate, both by lenders and by borrowers. Discrimination is, or should be, at the heart of banking. The attempt to drive discrimination out of banking has been at the heart of our recent banking woes.

That Fraser Nelson, a man most definitely on our side in the broad loves-capitalist-success hates-socialist-slums way that we regularly here celebrate, should write something like that, with no apparent sense of self-contradiction, tells you just how debased – how nationalised – the state of banking already is now in Britain, and has been for some while. It’s not that Nelson favours state micro-management of banks in the deliberate manner which I do agree is suggested by my heading. It’s worse than that. He just takes it for granted. His only question is: how should it be done?

Because you see, what makes this question about whether you are a “politically exposed person” scary and Soviet, which is Nelson’s point, is that the banks already are nationalised, in the sense of their databases being, you know, like that (hands brought together into a combined, intertwined, two-handed prayer fist) with government databases.

If banks operated in a true free market, banks asking about politics, or for that matter being suspected of having (and in fact having) political preferences which they make a point of not asking about, would just be stuff discussed in Which Bank? magazine. And the readers of such magazines would have plenty of banks to choose between, just as they now have plenty of magazines to choose between.

Another property grab

Following on my from recent SQOTD about property rights, it seems poignant to link to this item by Roger Thornhill.

This issue is also related to that of compulsory purchase/eminent domain that I wrote about some time ago. It is also somewhat related to the idea that the government is entitled to take money out of “dormant” bank accounts if, after a certain period, the account-holder does not use the account. The assumption seems to be, that if in doubt, it belongs to the collective.

Well sod that, quite frankly.

Speed limits and freedom

Well, full marks for trying, I guess. Ross Clark – a columnist whom I enjoy reading – argues that the fuss about proposals to reduce certain speed limits on UK roads are unwarranted. This is his argument:

It didn’t take long for the militant motorists’ lobby to get into gear to attack the Government’s proposal to reduce the national speed limit from 60mph to 50mph.

That’s true.

To lop 10 mph off the speed limit on country lanes, apparently, is tantamount to declaring a fascist dictatorship. “These corporate Nazi New Labour bastards are intent on turning law-abiding citizens into criminals,” began one of hundreds of angry posts on the website of a prominent motorists’ pressure group yesterday – before, bizarrely, imploring his fellow petrolheads to vote for the British National Party.

A classic bait and switch. For sure, some opponents of speed limits might like to clam they are the equivalent of bringing back the Gulag, but for most of us who do not see the logic of ever more draconian controls on the car, the case can be made without invoking images of Soviet Russia or Hitler’s Germany.

That the leaders of the motorists’ lobby are not quite the defenders of liberty they often profess to be is obvious from reading their output over the years. They have never been slow to demand the prosecution of cyclists, jaywalking pedestrians and motorists who drive too slowly or in any other fashion that impedes their progress.

That has probably something to do with the fact that a lot of pedestrians and cyclists do not think the highway codes in countries such as the UK applies to them. But he does make a fair point, but so what? Just because some motorists are hypocrits does not undermine the broader point.

Unfortunately, Mr Clark descends into nonsense:

The assertion that tighter motoring law is tantamount to dictatorship is further confused by a paradox. The world’s most illiberal regimes happen to have some of the most anarchic and dangerous of roads, while the most liberal nations tend to have the strictest traffic enforcement and safest roads. For all the conspiracy theories, Morgan Tsvangirai now says that the car crash that tragically killed his wife on Friday was an accident. It shouldn’t come as a surprise: reporters who have used the road between Harare and Beitbridge paint a terrifying picture of speeding, overloaded lorries and complete lawlessness – this in a country where if you criticise the President you can expect a rapid visit from Robert Mugabe’s thugs.

He’s right that consistently enforced rules of the road are hardly the same as political oppression, forced labour or torture. Of course. Rules of the road are a bit like etiquette: if consistently followed, it helps us all to rub along, which in a small island like the UK is not a trivial matter. But Mr Clark needs to think this through. Take countries such as post-war Germany or France, with their excellent motorways. Speed limits are, and can be, quicker than in the UK and in the case of Germany, some of their autobahns have had no limits at all (this may have changed, I’ll have to check). When that fella with the silly moustache was in power, the autobahns got built, and the quality of driving in Germany is, in my experience, high. But that example, when set against the chaos of Zimbabwe, proves little. In India, which is a democracy and fairly free place, the driving is absolutely terrible. There’s no correlation between oppression and driving like Jeremy Clarkson on crack. None.

Local authorities would love to reduce speed limits on a great number of roads, but they are hampered by bureaucracy. Whenever they want to designate a limit on a rural road lower than the default 60mph they must justify it through accident statistics. It may be obvious that motorists are driving too fast on a stretch of road, but a council must wait for the required number of people to be killed or injured before it can take any action. And even when, finally, sufficient coffins have been filled to justify a speed limit on a rural road, it remains legal to drive along surrounding lanes at 60mph, giving reckless motorists an incentive to divert on to even more dangerous rat-runs.

Well obviously, if we had privately owned roads, rather than roads run by bureaucrats, then speed limits would be dealt with without the need for all this sort of wrangling. This is, by the way, a powerful argument for privately owned roads.

The only problem is that the proposal does not go far enough. Many country roads are no more than cart tracks covered with tarmac, where 50mph is still far too fast.

Match the speed to the conditions – that is a sensible principle. But if that is the case, that does rather mess up the idea of blanket speed limits in the first place, unless one is going to adopt a sort of “if in doubt, walk” approach to getting from A to B.

And Mr Clark makes no reference whatever to the glaringly obvious fact that the profusion of speed cameras is, and has been, driven in part by a desire to raise revenue. Now, if roads were privately owned and the driver, as consumer, knowingly signs up to the deal, that would not be an infringement of liberty. But as things stand, the obsession with restricting use of the car is all of a broader assault on these machines, for ideological and environmentalist reasons. And the proposal to cut speed limits comes across, at a time like this, as just another, petty little squeeze on private citizens and their desire to get around relatively quickly. It has nothing to do with a yobbish desire to drive as fast as one likes and damn the results.

Notwithstanding traffic congestion – which private road ownership would help solve – the car is a symbol of freedom for millions. Mr Clark, who has written brilliantly about the assaults on freedoms in this country, should focus his ire elsewhere.

Public service announcement for British readers

If you are a Samizdata reader, you probably don’t have a lot of use for your Member of Parliament. However, now is the time to use them – especially if you have a Labour MP.

Here is Phil Booth:

At the Convention on Modern Liberty, I launched NO2ID’s request that everyone at the convention – and around the UK – tells their MP right now that they refuse their consent to having their information shared under any “information sharing order”, a power currently being slipped onto the statute books in clause 152 of the coroners and justice bill .

Please tell yours too. It’s important, and urgent – and something that only YOU can do. If you never have before, now’s the time to write to your MP – in a letter, or via www.WriteToThem.com.

Jack Straw has been making noises that could signal a ‘compromise’, but the only acceptable action is to remove clause 152 entirely from the bill. It is not linked to any other clause, despite being sandwiched between other powers and so-called safeguards offered to the information commissioner. It cannot be improved, and Straw can’t be allowed to merely “dilute” it. Clause 152 just has to go.

It’s imperative that in coming days every MP hears from his or her constituents. Please tell them you refuse consent to having your information, taken for one purpose, arbitrarily used for any other purpose. And ask them to vote clause 152 off the bill.

If you are skeptical about whether anything is important enough to write a polite letter to your Labour MP, then please read my detailed briefing for parliamentarians, here (pdf).


Note: If you followed the link to Jack Straw and now feel sick, I am sorry. Here is the retired Law Lord, Lord Bingham, to make you a bit better.

Attention Deficit Disorder

The inability of the media or the political class to discuss and analyse our wonderful house of debt

Lessons from the Golden State

Fraser Nelson at the Spectator has an interesting column at the moment about how Britain’s Tories have been influenced by the culture of California, specifically, the northern part of that great state. I think his analysis is fine but I would add some caution, given that the state is, or is about to go, bankrupt. Here is what I wrote in a comment over at the Coffee House blog:

For a while, the political culture of California, both the northern, Silicon Valley/Napa/San Francisco and the southern, Hollywood bit, had been libertarian: or to put it in US politicsspeak: conservative on economics, liberal on social issues.

More recently, as the near-bankruptcy of the state shows, the culture of the state has become socialist. Spending is out of control; the Green movement has stymied developments such as new electrric power plants. Many of its best entrepreneurs are fleeing to nearby Nevada, or further afield. California has an economy the size of France and is exhibiting France-like dirigisme.

I would urge the Tories to draw the right conclusions from this state, not to get too dazzled by the admittedly superb economic success of Google and the tecchies.

One of the things that I liked about northern California when I used to visit a good friend of mine in Steve Jobs’ back yard of Cupertino was that you might be sitting in a bar, drinking a coffee next to some pony-tailed dude in a Grateful Dead T-Shirt, and that the latter would be tapping away on his laptop about his latest round of venture capital funding before heading off down the gun range to fire in his new Glock.

A good historian of California is Kevin Starr. Check this out.

Gibberish

Yesterday Chris Grayling unveiled a new Tory slogan, which must be the worst offered by a British political party for a while, despite the impressive competition provided by “Forwards, not backwards,” “British jobs for British workers,” and “The real alternative.” It is:

Fewer rights, more wrongs.

OK, so I am a bit of a weirdo, and I do not always take the same view of what is right and what is wrong that most people do, but when I say something is wrong I do not want more of it. I am fairly sure the general public is against wrongs, and expects politicians – however implausibly – to advocate reducing them.

Samizdata quote of the day

A propos of my earlier post on what recent legislation we should try to repeal in order to reclaim our lost civil liberties, I was struck by the thought that it might be easier to simply repeal every piece of legislation introduced since 1997.

Bishop Hill

Sean Gabb stuns the Young Conservatives

I recommend this, a speech given by Sean Gabb on Monday night to the Young Conservatives. Said he: close down the BBC, the Foreign Office, much of the Home Office, the Commission for Racial Equality, anything to do with health and safety, etc. etc. Quote:

Let me emphasise that the purpose of these cuts would not be to save money for the taxpayers or lift an immense weight of bureaucracy from their backs – though they would do this. The purpose is to destroy the Establishment before it can destroy you. You must tear up the web of power and personal connections that make these people effective as an opposition to radical change. If you do this, you will face no more clamour than if you moved slowly and half-heartedly. Again, I remember the campaign against the Thatcher “cuts”. There were no cuts, except in the rate of growth of state spending. You would never have thought this from the the torrent of protests that rolled in from the Establishment and its clients. And so my advice is to go ahead and make real cuts – and be prepared to set the police on anyone who dares riot against you.

As a libertarian myself, I have long resisted the idea of class warfare. I hate the collectivism of such notions. I mean, I have friends, including libertarian friends, who work for the BBC. (I also have a relative in a rather interesting position in the BBC, I have recently learned. You meet all sorts at family funerals. He thought of the BBC iPlayer, or so I’ve been told.) But, on the other hand, if a Gabbite government ever did materialise in Britain quickly enough for me to witness it, I would not object very strenuously.

But whatever I may feel about this extraordinary event, it certainly was an event. Why, even Instapundit noticed it, or rather he noticed the Volokh Conspiracy noticing it, which is how I noticed it this morning.

What would be really good would be if the lefties picked up on it and said: “This is what those evil Conservatives really want to do!”, and if Sean then repeated it all to something more like a truly national audience, adding “if only”. Or, if truly national pundits start linking to the thing, which amounts to the same thing. Even better would be if the opinion pollsters start asking the actual voters, the actual people, how they feel about Gabbism, and if quite a lot of them say: sounds good to us.

Because, equally interesting, and from a libertarian point of view just as controversial, is what Sean says about state schools and state hospitals and state welfare:

Following from this, however, I advise you to leave large areas of the welfare state alone. It is regrettable, but most people in this country do like the idea of healthcare free at the point of use, and of free education, and of pensions and unemployment benefit. These must go in the long term. But they must be retained in the short term to maintain electoral support.

None of this is new to me. I am sure I could dig out earlier Free Life Commentaries in which all this is said. In fact, come to think of it, Sean wrote a book about all this, didn’t he? Yes he did. But this time, he said it to a politically quite interesting audience.

I am not going to stop opposing government spending on schools and hospitals and welfare merely to suit Sean Gabb’s suggested strategy for the Conservatives. But, I do love how Sean (I assume it’s Sean) describes this speech (here) as having been greeted with “a combination of silence and faint applause”. Springtime for Gabb has come early this year. Or, to switch to another showbiz comparison, it must have been a bit like this, that Michael Jennings linked to from here earlier today.

Is there perhaps some kind of Law of Speeches to the effect that all truly significant speeches are greeted thus, and that only speeches saying absolutely nothing of interest get standing ovations? It would make sense.

Cleaning the Augean stables

Bishop Hill comes up with a list of the legislation that an incoming UK government should get rid of to restore some of the civil liberties lost over the past decade or so. As he accepts, this is probably only scratching the surface of the issue, but still. The sheer quanity of the legislation that has been brought in, and its scope, is pretty startling even to a grizzled veteran of chronicling such outrages.

Maybe the simple solution is to repeal all the acts in one go.