Penners,

As suggested last week, both Bill Morris's TGWU and Dave Prentis's Unison
are following the lead set by John Edmonds' GMB in opposing, forthrightly,
New Labour's plans to privatise what remains of the welfare state, and much
else of the state sector. Against the warnings of his predecessor, Paddy
Ashdown (ex-Special Boat Service and now International Crisis Group
personage), Lib Dem leader Charles Kennedy is seeking to exploit this
turmoil by positioning his party as the protector of state welfare
provision, in collaboration with the unions. Thus the Lib Dems, in becoming
the advocate of the public service ethic, assume the erstwhile mantle of the
(Heathite) Tories, while Labour, in becoming the relentless ideologue of
privatisation, consolidates Thatcherism, and the Conservatives retreat ever
more into the hysterical paranoia of the Monday Club (see third part of
Wilson Plot review, to follow).

=====

Blair muddled over private sector, say unions 

Kevin Maguire, Lucy Ward and John Carvel
Monday July 2, 2001
The Guardian

Tony Blair last night faced mounting criticism within the Labour party when
the leaders of Britain's two biggest unions attacked
"confused" proposals to extend private sector involvement in public
services. 

The Transport and General Workers Union general secretary, Bill Morris,
accused the government of a "cocktail of confusion" and
complained it had been unable even to define properly its proposals. 

The Unison leader, Dave Prentis, warned in an interview with the Guardian
that his union had £8.5m in a dispute fund to oppose
privatisation moves. 

The TGWU and GMB revealed they were to meet Charles Kennedy, the Liberal
Democrat leader, to discuss public services, and
both suggested they could create difficulties at Labour's annual conference
over the appointment of Charles Clark to the new
cabinet-level job of party chairman. 

There were belated government efforts to reassure unions and other critics
of the limits on plans to step up the role of the private
sector. 

The transport secretary, Stephen Byers, a staunch Blairite who supports an
increased role for private firms in delivering public
services, issued firm assurances on the BBC's Breakfast with Frost that the
government would not privatise the London
Underground - a comment intended as a signal that ministers are not planning
a privatisation free-for-all. 

Sources close to Mr Byers said last night: "The debate about the role of the
private sector has got under way, but because there is
no clarity or clearly defined limits people who are opposed entirely have
been able to run up the flag of privatisation." The attempt to
lay down firm markers on the limits to reforms will be seen by critics as a
sign of nervousness at government loss of control of the
debate. 

The TUC will meet on Wednesday to consider a pro-public services statement
that threatens to set it on a collision course with Mr
Blair. 

The TGWU's biennial conference in Brighton this week will discuss calls to
review links with Labour amid mounting concern across
the union movement. Mr Morris said he would oppose any weakening of the ties
and also rejected reports that his union could fund
the Liberal Democrats in future, although he accepted they could join forces
on single issue campaigns. 

Rejecting GMB suggestions of "pro-public services" union candidates
challenging Labour in local elections, he said: "There is only
one show in town and that is the Labour party. There is no divorce and there
is no separation." 

But he warned: "Government is focusing on the wrong targets. We see the main
problem not as poor management but a cocktail of
policy confusion," he said. 

The Lib Dems are keen to talk to unions about public services, having
secured a strong election result on a platform of extra
taxation for investment in health and education. 

Mr Kennedy said yesterday: "The Liberal Democrats have argued for investment
as a number one priority. While we are not
ideological over the provision of services we do believe that the public
service ethic must be predominant." 

Full article at:
http://politics.guardian.co.uk/labour/story/0,9061,515506,00.html

Michael Keaney
Mercuria Business School
Martinlaaksontie 36
01620 Vantaa
Finland

[EMAIL PROTECTED]

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