Carillion: When private service providers keep proving so inept and unethical, how can we be asked to back privatisation?

Photograph: Future site of the Library of Birmingham, from 2009, by Elliott Brown (License) (Cropped)

Carillion, a services behemoth, has collapsed. With it, it takes billions in government contracts and puts tens of thousands of jobs at risk. The construction and services company accrued £1.5bn in debt - of which £600m was owed to it's pension fund.

Fortunately, despite Carillion's own recklessness, the Pension Protection Fund (PPF) has stepped in to assure workers that their pensions will be protected - despite the complete failure of the company to meet it's commitments to workers.

However, numerous government projects, and smaller businesses to whom Carillion outsourced work, face an uncertain future. A result of what David Lammy described as, "privatise profits when things go well and nationalise risks so the taxpayer picks up the bill when things go wrong".

This government has tried to convince us of, or slip past us, a privatisations agenda, trusting private companies in the public sector. But how cane we back privatisation, when private sector providers keep proving so inept and unethical?

Carillion is not the only major private concern, even in the past year, to go bust and to do so revealing a massive pensions deficit - having taken profits for executive pay, but left workers' futures in peril, in what must surely be a major ethical breach.

When the steel industry nearly collapsed with the Tata Steel decision to close it's plants, workers' pensions were a huge block on a deal to save the industry. Incoming buyers did not want to take on responsibility for the pensions.

The unwillingness of private sector companies to take up their responsibilities in this case left workers with steel pensions in uncertain circumstances, where they have been prey to financial advice groups - now under investigation over their predatory behaviour.

The thing is, the government isn't just pushing privatisation for services, but for things like social insurance and pensions. It wants us all to do these things on personal, private terms, rather than in big collective government funds.

Yet, how can we trust the government's much vaunted workplace pensions scheme, when private companies treat workers' pensions as the first thing to drop when their isn't enough money for every commitment the company has made.

And what about Virgin? A global corporation that bitterly scraps for government contracts, even to the point of suing commissioners when they don't get them - suing parts of a cherished health service in financial distress. It was later awarded a huge contract, to much public outcry.

The government must now move to salvage what it can of Carillion, nationalising projects and departments to keep their vital work going and keep people employed. But what shape that takes is yet to be seen.

The speculation is that the government will continue to it's neoliberal trend of nationalising failure and debt, while returning the profitable parts to the private sector for executives to enjoy the benefits.

It would be refreshing to see something. Like the private sector picking up the tab for it's colossal failure? Yeah, right. Perhaps less fanciful would be consolidating parts of Carillion into a cooperative, run by it's workers?

As a cooperative, the still functional, still profitable parts could serve workers. The profits would deliver dividends for the workers, that would be of direct benefit their communities.

Whatever the government chooses to do, take note. This is one of those 'true colours' moments, where the rhetoric is paper transparently thin and the tropes are well known, enough to allow us to see what the governing party really values.

Labour and the Basic Income: To make automation work for people, first the relationships between people and society, work and welfare, must be reframed

To tackle the problems of the future, first we need to rethink our approach to work and welfare. Photograph: Job Centre Plus by Andrew Writer (License) (Cropped)

In the passed few weeks, the Labour Party has been talking up it's determination to make technological advances work for ordinary people, rather than disenfranchise them.

For the party leader Jeremy Corbyn, the focus has been on the workplace. Corbyn has raised the question of how to use cooperative collective ownership of businesses by workers to put automation in the hands of people - rather than let automation be their replacement in the hands of their bosses.

Meanwhile, Shadow Chancellor John McDonnell has focused on the state role. McDonnell, talking at a Manchester anti-austerity event, spoke of a renewed drive for public investment as the first step to anchoring technology to people and their interests.

It was left to the Labour National Youth Conference to contribute the third integral component, with the future of the Labour Party backing a motion in support of the universal basic income.

The motion acknowledged both the problems with Britain's welfare system and the concerns for the future being raised by the rise of automation. To answer these, the LNYC motion presented the basic income.

The basic income is a universal form of welfare, a payment received - with very little bureaucracy - by all citizens. It is designed to cover the basic essentials of life, so as to end poverty and it's coercive power over how people choose to live.

Labour usually falls in with the same basic conceit, shared by most right wing liberal groups, social democrats and worker's parties: that life begins and ends with work - or rather, with wage labour. That work of this sort is a fundamental component and an axiom in the building of any social model.

Work, to 'earn' the right to live in exchange, is treated as a value. As a moral component essential to any social contract. But for progressives, this cannot be the last word.

If we are to have true social progress, we must start first with a base of no poverty and no homelessness. We must begin with the right to live. If we care about choice, about liberty and justice, we must not let coercion remain the starting point for engaging with society.

For the Labour Party in particular, embrace of that wage labour conceit verges on hypocrisy - the party of workers buying into the 'moral value' of 'working for a living'.

There has not been nearly enough scepticism of it, or recognition that it is a value of limited scope. Restricted to the specific benefits it delivers within a specific social system. A system in which even certain forms of work are prioritised above others, and were these forms of work are made nearly mandatory.

Right now there is a crisis in welfare - but not the way the Conservatives think. The crisis in welfare is one of dignity. Conservative cuts have strangled Britain's social security safety net.

That has left vulnerable people at the hands of an exploitative market and put through probing, demoralising, assessments by organisations with weak ethical codes and goals that run counter to the wellbeing of people who desperately need support.

If Labour are really going to reform this country, to tackle these kinds of injustice, they first need to get the foundations right. By no means is basic income a panacea. But it is a fairer and less coercive starting point for a society.

As more and more work becomes automated, as paid work becomes more scarce, we need that fairer starting point as a basis upon which to build a new kind of relationship between people and society - one that acknowledges, from the start, their basic right to live.

Macron and Popularity: The President of France has yet to win a sceptical public back over to the political process

Photograph: LEWEB 2014 Conference - in conversation with Emmanuel Macron by LE WEB (License) (Cropped)

The victory of Emmanuel Macron attracted the attention and plaudits of centrists across Europe, desperate for a way out of the slump that has undermined social and liberal democratic parties. But the talk in many countries of needing their own Macron and En Marche is all just buying into a myth, because the rise of Macron was an illusion.

Reports this last month talked of Macron and his government already facing a decline in public support. But what those reports ignore is that support was never that high in the first place - the election landslide was more due to the electoral system than a swell of support.

Macron's movement was perhaps well organised or made a particularly well tailored pitch, but En Marche mostly benefited from a system that favours voters' picking their least worst option - which served En Marche who were the heirs of the collapse in the credibility of the centre-left and centre-right.

Macron took just 24% in the full field first round of the Presidential vote, and La Republic En Marche took 32% on a first round legislative election turnout of just 49%. These numbers delivered political power, but not broad public support or high approval. There was no rising wave, just a window of opportunity.

The problem for Macron is not that he has been discredited, but that he has yet to win voters back to the political process. Taking power on the support of a quarter and a fifth, his approval ratings will begin low, with scepticism high and everything to prove.

Turning political power in decent approval ratings was never something that was going to happen overnight. The pledges of Macron were built around big promises with no easy solution, like cleaning up politics.

The difficulties faced by Macron and En Marche were underlined when, within the opening weeks of his new office, his MoDem political allies and their leader Francois Bayrou were hit by corruption investigations.

The other big promise Macron made was to reform France's labour laws, famous for their scale and complexity. It is an issue on which there is a clear public support for action, but no real consensus on what action.

Macron has his own ideas, but has set about a negotiating strategy, rather than trying to force it through. Even trade unions have gotten around the table for talks - with the two of the largest unions even declining to take part in protests against any watering down of labour protections.

While the left under Jean-Luc Melenchon and the union CGT push for protests and strikes, Macron's consensus approach with no legislative surprise has got enough of the key players involved to reduce action to the harder left organisations that media find it easier to discredit.

But the dissatisfaction with politics in France is too broad to be convincingly reduced to the bellyaching of the radical left. And despite the lean times and discrediting of the centre, neither the radical left nor the far right have taken a decisive advantage.

The people of France are not itching to rise up for either extreme, but nor have they fallen back in love with the Republican centre. Macron was never the unquestioned messiah and he has yet to win the public over.

The election results showed all of this. The approval ratings just confirm it. The task ahead of Macron is to rebuild the Republic and he has no gordian solution. A facsimile of Macron in another country would face the same problems.

Macron's ascendency is not the revival that liberals crave, nor are his low approval ratings the death knell of moderate-led reformist capitalism for which socialists are straining their ears. Macron got enough support to get through the door.

But to stay there, Macron and En Marche must win people back to the political process. Sure, his failure to reengage people would be a blow to neoliberals trying to cling to power. But it would be just as bad for progressives of all stripes, for whom public faith in democracy and a politically active and interested people are a cornerstone.