Party Support Mailing December 2012

NATIONAL NEWS

Please find below the latest news from Parliament, our national campaigns, the Co-operative Councils Network and more. Please circulate to your members or include this in your local newsletters. You can find all the latest news and opinions from the Co-operative Party at www.party.coop.

Four new Labour & Co-operative MPs make history

Excellent by-election results mean that there are a record 32 Labour & Co-operative Members of Parliament, as , , Stephen Doughty and join the Parliamentary Group.

Manchester Central was the first of three by-elections on 15 November to declare its result, bringing the news that Lucy Powell is the new Member of Parliament, a Co-operative MP representing the heart of the UK co-operative movement, including the HQs of the Co-operative Group, Co-op Bank and Co-operatives UK. Next up we heard the news that Stephen Doughty, Head of Oxfam in , was elected in South & Penarth to replace outgoing MP and Co-operative Party NEC member .

Finally that afternoon came the declaration in , where Andy Sawford took the seat from the Conservatives with a huge swing, representing a Labour Co-operative gain.

Two weeks later, Croydon North elected Steve Reed, a pioneer of the Co-operative Councils initiative and the 32nd member of the Co-operative group of MPs. Thirty two Co-operative Members of Parliament represents the Party’s highest ever number.

Karin Christiansen, General Secretary of the Co-operative Party, said:

“It is fantastic news that these three great new MPs are joining the Co-operative Party’s Parliamentary Group. Co-operative candidates winning in all three by-elections demonstrate that there is appetite around the country and within the Labour movement to promote and deliver co-operative values and principles.

77 Weston Street Robert Owen House Transport House SE1 1SD 87 Bath Street 1 Cathedral Road 020 7367 4150 Glasgow G2 2EE Cardiff CF11 9HA www.party.coop 0141 304 5550 020 7367 4178

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“This is a great set of results for the Party and the Corby result in particular highlights the dissatisfaction around the country for this Conservative-led coalition’s programme for Government. I know these new Parliamentarians will be great advocates for co-operation; advocacy we know Britain’s public policy will benefit from enormously.”

In addition, both the Labour & Co-operative Police & Crime Commissioner candidates were successful. Alun Michael was returned in South Wales and Oliver Martins won a fantastic result in Bedfordshire. MP: Introducing the Power Book

Shadow Secretary of State for Energy & Climate Change Caroline Flint MP introduces the Power Book launched last in October by the Co-operative Party, SERA, LGiU and the Shadow DECC team.

As a new energy industrial revolution unfolds, future technologies, sources of renewable and low carbon energy and their application offer more scope than ever to challenge the existing market, reshape relationships and create new agents of delivery.

There is huge potential for individuals and communities to create and save energy. In truth there are plenty of examples both here and abroad which demonstrate the potential of community energy as a low carbon driver. Important as that is, it is equally about empowering people to take more control over their use of energy and at what price.

At the 2011 Labour Party Conference talked about responsible capitalism. One year on, it is clear to everyone what he was talking about. Whether it is rising train fares, unfair bank charges or soaring energy bills, it is clear that in too many areas of our society, while there are large profits to be made, ordinary people feel powerless.

‘The Power Book’ is about power. And power relations. About the choices people have to power their homes and businesses and with what. About influencing the cost of energy whether by collective consumer action, community ownership or through reduced energy consumption. About local government and community organisations as low carbon energy providers with local buy in.

Whilst the chapters do not represent Labour Party policy they are a welcome contribution to a more open and diverse energy debate.

Caroline Flint launched the Power Book at Labour Party Conference. It brings together a collection of chapters by different authors, with a foreword by the Rt Hon Caroline Flint MP.

To download your copy of the Power Book, click here.

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Co-operative childcare at forefront of ’s review

Shadow Education Secretary and Co-operative MP Stephen Twigg has outlined to that co- operatives are at the forefront of his review of childcare policy.

The Observer has reported that the cost of childcare is soaring and that working full-time is now ‘hardly worthwhile’ financially.

Labour is considering “co-operative childcare”, in which parents could ‘take a stake in the nurseries they use and take a share of the profits, reducing childcare costs by about £150 a year’. This of course reflects the work of existing childcare co-ops, such as the one visited by Ed Miliband in Edinburgh earlier this year, and the nationwide organisation The Co-operative Childcare, part of Midcounties Co-operative Society.

Stephen Twigg told the newspaper: “We want to explore co-operative models, whereby local parents have a far bigger say in running their local nursery and get a share of the profits. Childcare centres are run successfully along these lines in Sweden and in some parts of the UK already. We want to see this model expand. Co-operative childcare can reduce costs to parents, provide flexibility for those who work and can reach communities that don’t have enough nurseries.” Jennette Arnold AM urges Boris to put his money where his mouth is, and only use responsible banks

The London Assembly last month urged the Mayor to ensure that the Greater London Authority only uses banks with a strong record of lending to small business and a commitment to corporate responsibility. Labour & Co-operative Assembly Member Jennette Arnold describes why the GLA should move its money.

The motion, agreed unanimously by London Assembly Members, called for the Greater London Authority (GLA), Transport for London, the London Fire and Emergency Planning Authority and the Mayor’s Office for Policing and Crime to take a close look at where they buy banking services.

In the four years from 2008-12 the GLA group spent almost £35 million on charges and other costs for a variety of services including card processing, foreign exchange, bonds and securities.

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In seconding the motion I highlighted how Londoners, many from my constituency of North East London (Hackney, Islington and Waltham Forest), are struggling with financial exclusion, forced into the debilitating clutches of loan sharks and because of a lack of affordable finance caused by the failure of the big banks find themselves unable to provide for their needs.

I believe it’s time the GLA joined other cities like New York, Seattle and Buffalo and move our business to banks that share a commitment to responsible banking. As the most senior tier of local government in London, the GLA could give a clear moral lead to other local authorities in moving the management of public funds over to banks and building societies that do not engage in “casino-style” banking operations.

By supporting alternative finance and increasing the size of the sector the GLA can directly boost the amount of affordable credit available to Londoners. In my own constituency, Hackney Council now banks exclusively with the Co-operative Bank. Co-operatives and building societies recognise that Co-operation – as opposed to Competition – can create a financial sector that is run in the interest of the wider public as opposed to a narrow group of shareholders.

As a strong and committed supporter of a number of campaigns around banking reform including: the Co-op movement’s The Feeling’s Mutual Campaign which called for Northern Rock to be re-mutualised and for an end to the de-mutualisation of the sector and also the Move Your Money Campaign, I felt proud to be seconding this motion and to receive the unanimous cross party support from London Assembly Members.

Given the scale of economic hardship being experienced across our capital, particularly within my constituency, Londoners rightly expect that their representatives procure services from institutions that contribute positively to their city and pay close attention to those who suffer financial exclusion and the isolation and poverty that it leads to.

It therefore really is not too much to urge Mayor to put his money where his mouth is, and only do business with banks who have a strong track record of lending to small businesses in the capital.

The full text of the motion agreed at the meeting (14/11/2012) reads as follows:

“This Assembly notes that the GLA group procures a variety of banking services, from card processing and foreign exchange to bond and securities services. In the four years from 2008-12 the GLA group paid almost £35m in charges and other costs for these services, representing a significant combined procurement budget.

“This Assembly calls on the Mayor of London, the GLA Head of Paid Service, the Mayor’s Office for Policing and Crime, the Fire and Emergency Planning Authority and the Board of Transport for London to explore opportunities to move taxpayers’ money to banks with a better track record in lending to small businesses and with a track record that is a better fit with the group’s Responsible Procurement policy.

“As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.”

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Prof. Paul Salveson: Railways for Wales – a new and better way

In the Welsh Assembly in November, Professor Paul Salveson MBE and Vaughan Gething AM launched a new report, Rail Cymru, written by Paul for the Co-operative Party, SERA, ASLEF, Co-operatives UK and Co-operatives & Mutuals Wales on a new vision for Wales’ railways. Professor Salveson introduces his report here.

The near-meltdown of the rail franchising process highlights the need to find a better way of delivering rail services. The proposals in this report are for a railway company serving the people of Wales and the Borders which puts their needs before those of private shareholders and foreign owners (the current Wales and Borders franchise is operated by Arriva which is owned by German Railways).

The vision for a ‘Rail Cymru’ is an exciting one, involving rail employees, passengers, the wider community and the elected government of Wales. I firmly believe that this approach of a not-for-profit company, based on co-operative values, will deliver better value for money to the taxpayer and provide excellent quality of service.

The franchise comes up for renewal in 2018 so that allows more than enough time for the to develop its plans in detail, ensuring employees, passengers and the community are fully engaged with the vision for a people’s railway.

Central to the vision for ‘Rail Cymru’ is building an integrated network of rail and connecting bus services, with improved access for walkers and cyclists to stations. Stations should be transformed into hubs of community and business activity.

Download Rail Cymru: A People’s Railway for Wales here

Professor Paul Salveson MBE is a rail expert and Labour Councillor in Yorkshire. He writes at www.paulsalveson.org.uk

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Andy Sawford MP pays tribute to Corby’s co-operative traditions in his maiden speech

Andy Sawford, the new Labour & Co-operative MP for Corby, made his maiden speech in Parliament on 22 November. Corby and its predecessor seats have an unprecedented co-operative history, with three previous Co-operative MPs since 1918, and Andy paid tribute to that heritage in his speech

I am very proud to speak in the Chamber for the first time as the Member of Parliament for Corby. Locally, we know the constituency as Corby and east , comprising as it does both Corby town itself and the surrounding villages, the four towns of Raunds, Irthlingborough, Thrapston and Oundle, and many villages across east Northamptonshire.

…

Louise [Mensch] had a tough act to follow. Her immediate predecessor, the Labour and Co-operative MP, , served for 13 years and was well known as a very hard-working local MP who was concerned with his constituents. He was instrumental in the opening of a new railway station in Corby, the opening of children’s centres across the area, major health service improvements and the building of new schools. He also served with distinction as a Minister.

Like Phil Hope, I am a co-operator, and I am proud to be a member of the Co-operative group of MPs, which this week has reached record numbers. The first ever Co-operative MP in the country was elected to represent my constituency, on its earlier boundaries, in 1918. The driving force behind Alf Waterson’s selection was the blastfurnacemen’s union in Corby. Although Northamptonshire had once been a stronghold of the Liberals, in the early 20th century, a more radical culture emerged from the chapels and the boot and shoe industry, in which past generations of my family were employed. Local co-operatives in towns across the constituency became a vital part of the local economy, and still feature strongly today. I believe that co-operative approaches, such as mutual housing and new energy co-ops, can play a big role in my constituency’s future.

The towns of Raunds and Irthlingborough are known for their co-operative heritage, and as boot and shoe towns. Raunds’s place in history is assured by the events of the Raunds strike of 1905, during which a party of boot operatives marched to London to demand fair wages.

The Times reported:

“Their arrival was awaited in Parliament by a large number of people in Parliament Square, from where a deputation of ten proceeded into Parliament to meet with MPs. Afterwards, the men were admitted to the Strangers Gallery, and a slight disturbance was created.”

Although I urge no disturbance in the Strangers Gallery today, I assure the descendents of those Raunds marchers that I will continue their campaign for fair wages.

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Step forward in the House of Lords for loansharks campaign

On 28 November the government recognised the need to cap the interest rates charged on payday loans, responding to a debate in the House of Lords on a proposed amendment to the Financial Services Bill.

As inflation rises and household incomes fall, increasing numbers of people are borrowing from payday lenders to make ends meet and recent research by Which? found 48% of payday loan borrowers find themselves unable to repay their debts.

The payday loan industry, subject of a revealing recent Newsnight report and a current investigation by the Office of Fair Trading, is a booming business sector in a recession, currently valued at £2 billion and growing.

The amendment to the Bill called for a crucial cap on interest rates to be introduced by the Financial Conduct Authority (FCA) in order to regulate the payday loan industry – regulation that other countries around the globe have already implemented, leaving the UK far behind in terms of protection for borrowers.

Introducing his amendment, Lord Parry Mitchell said:

“This amendment does not seek to ban payday lending – it seeks to give the FCA the power to cap interest rates when they are causing consumer detriment. It is a ‘may’ and not a ‘must’. It puts the responsibility squarely into the hands of the FCA … There are many people who cannot get credit from traditional sources and without legalised payday lenders their alternative is the backstreet loan-sharks whose penalties for non- payment are often pretty brutal. Payday lenders fill a vital gap, but they need to be controlled.”

Peers including the incoming Archbishop of Canterbury the Rt Revd Justin Welby, spoke in support of the amendment and facing a possible defeat in the vote, the government promised to introduce its own amendment to the bill next Wednesday and confirmed that this would include capping the cost of credit. Lord Parry withdrew his amendment on the basis of the government’s assurances.

Capping the cost of credit is a key legislative ask in the campaign against legal loan sharks so this is important step forward in the efforts led by MP in Westminster.

However, there is also great need to tackle loan sharks in local areas. Co-operative Party members across the country are leading the way in their communities and councils and will be publishing a series of blogs about their campaigns.

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Our rights at work are not for sale

On 18 October the Communities and Local Department introduced a hastily cobbled together Bill titled ‘Growth and Infrastructure Bill’. Tucked away at the back of this Bill was Clause 23, titled ‘employee share ownership’.

This clause was actually the Beecroft ‘shares for rights’ announcement that the Chancellor had made at his Annual Conference speech a couple of weeks before. The corruption of the term ‘employee share ownership’ and the potential reputational damage to the model was clear.

The Party engaged with the Employee Owners Association (EOA), who had not picked up on the legislation but having been alerted by the Co-operative Party issued a challenging open letter to coalition ministers. Following this the Co- operative Party engaged with TUC and the Shadow Business Secretary and issued a statement to the media.

The Party sent a brief to the shadow teams and over 100 PLP members. The brief was used at Second Reading by MP and Ian Murray MP, the frontbench leads on the Bill. Elements of the Brief were incorporated straight in to the PLP brief. As a result of the briefing, although the Labour Party has been highly critical of the clause, it maintained strong support for proper Employee Share Ownership.

The Party then prepared a witness who was called in front of the Standing Committee to give evidence on the particular Clause 23.

As the Bill entered standing committee, the Party further engaged with the frontbench lead Ian Murray MP and TULO. Ian Murray MP wrote for the Co-operative Party website and sent an email to all members the day before the crucial vote on the clause in standing committee. The email pushed members to sign the TULO petition on this issue which was handed in the the following day.

The Party will continue this work as the Bill enters its 3rd reading and report stage and enters the Lords. For any more information or anticipated activity please contact Joe Fortune, Parliamentary Officer.

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