Showing posts with label gareth stephenson. Show all posts
Showing posts with label gareth stephenson. Show all posts

Thursday, 19 January 2012

Memo to Dave

The Health and Social Care Bill is gathering more opponents as people get closer to its full implications, but should you be worried? Is it the case that most of the opposition is selfish, people protecting self and empire? Well, it possibly is, although that is not to disrespect the genuine care that most of them hold for the NHS. The public understand that care for their vocation and that is why you need to look carefully at strategy in the face of this mounting opposition. Whatever its cause the opposition will be spun in the name of protecting the service and you will be cast as the villain.

There are some very good things in the Bill, notwithstanding the disappointment that it is not part of a truly radical and ambitious solution like that suggested in the Unofficial Green Paper (www.bigsocietygreenpaper.org). However, there are also some weak points, and allowing, or forcing, the NHS to break into hundreds of social enterprise providers is one thing that seems to have little opposition and yet I see it as one of the most dangerous. Whereas much of the opposition to the bill is around the introduction of competition, my caution is that the social enterprise providers will not be equipped to deal with that competition, being stuck with tupe obligations and inherited services.

I need to be clear that tupe is not a bad thing and reducing terms and conditions to a lowest common denominator with the private sector should be avoided. These social enterprises however look to me to be risking death by a thousand cuts as they lose profitable services to commercial competition and are stuck with the rest, effectively relying on charity to survive. This is a return to the Victorian era and unlike most of the opposition I see that as the  'system' danger within your reforms.

To avoid this you have a golden opportunity to think big in a low risk way. A complete overhaul of all pensions and healthcare systems, including the way that they are funded, would create greater fairness, reduce the burden on the state of all pensions over the medium term and level the playing field in terms of competition in the short term. There is much more detail on this in the Green Paper but a return to a system where many depend on charitable providers for their care must be avoided at all costs. Equality has underpinned the NHS since inception and must continue. Giving the juiciest parts of it to private providers will simply unpick the rest. As demographic pressures and the necessity of funding from current day tax receipts combine to render it unaffordable, so the social enterprise providers will be the ones without funding to care for their patients in their marginalised and expensive rump of services.

I do accept that competition is needed but you must consider how to balance best value with the long term future of the service and those working in it. Creating a level playing field for competition, and creating a nationally-underwritten framework for health and pensions funding, would do two hugely important things. It would ensure that when competition is introduced, the existing providers have a fair chance; and it would also reassure those nervous about the new commissioning arrangements that sufficient funding will be in place for the foreseeable future. It is therefore possible to save the NHS Bill without touching it at all. It is largely not the Bill that is wrong and if you analyse the opposition you can see that. It is the supporting structure, the methods of encouraging competition and the move away from decent pensions and pay that are causing the obstruction, and these can and should be dealt with outside the Bill.

Gareth

Tuesday, 17 January 2012

Memo to Nick

Dear Nick

Your recent comments about a John Lewis economy set me thinking. Thinking that you should stop thinking. Of all the harebrained wannabe vote-catchers this takes the biscuit. It will not endear you to voters and it certainly won't win any friends in business. Most importantly it won't fix the economy either.

Despite your ill-researched comment (JLP is a trust, the staff do not own shares), there is evidence that employees with a shareholding in their employer are actually more productive, rather than being 'as good' as you allege. That said, the motivators of those employees are unlikely to be purely financial, and you would need to analyse why they joined the firms and industries that they did alongside what it is that motivates them to over-perform. It is daft and simplistic to assume that giving employees a share in any firm will create anything other than additional paperwork for the employer. Without any other regulation it is also likely that the employer will reduce salaries to allow for any dividend which may be payable.

Overall then this is unworkable and pointless, just an attempt to put a Liberal flag in a corner of the Big Society. That said, it is a laudable aim, in certain circumstances. Capturing the benefit of a more motivated workforce and population is a big theme of the Unofficial Big Society Green Paper, which I am sure, from your comments, you haven't read. You can see more at www.bigsocietygreenpaper.org

In essence there is a way to create the benefits of employee share ownership, widely and deeply across society, without forcing companies to give up shares. Giving people shares, or policies, in a national insurance and pensions fund is one of the proposals in the Green Paper and whilst this fund could own shares in state and social enterprises, it could also hold funds on behalf of, and provide benefits for, the entire population. This would be a widely spread fund reducing the risk to individuals from a corporate insolvency but it would provide the same direct correlation between their efforts and their rewards that you seek from direct share ownership. In that way it would enshrine big society ideals whilst solving the inherent unfairness of the current system.

That has to be a plan worthy of consideration? If so, please let's have a think about it before we announce it.

Best

Gareth




Monday, 9 January 2012

Memo to Treasury

Steve Richards' excellent R4  David Cameron documentary - on iPlayer at http://www.bbc.co.uk/iplayer/episode/b01946pr/David_Camerons_Big_Idea_Episode_1/ - began to explore the internal blocks in government to the development of the Big Society. It struck me just how little the Treasury had put into the concept, both in terms of support and ideas. On reflection this is partly due to the lack of formal policy behind the concept, but it also suggests that the Treasury could be more pro-active in devising ways to support one of the PM's flagship pledges.

In the Unofficial Big Society Green Paper (www.bigsocietygreenpaper.org) I have tried to be as inventive as possible in examining the potential for a truly big Big Society to take on a life of its own. I struggle to see the point of thousands of independent social enterprises, especially in the NHS, where it seems to be more of a backward step to a network of charitable foundations. I do however see the point of social enterprise and can also see that it has the power to energise and engage the wider population, something the Big Society is missing.

I would strongly suggest therefore that you look at ways of using social enterprise to build solid foundations for the Big Society. The Green Paper suggests a complete overhaul of taxation, pensions, health & social care and Government, resulting in an immediate return to a small government accompanied by a much fairer system which will over time support a gentle redistribution of wealth. In the process the Green Paper demonstrates that there are ways of shoring up the banks without Quantitative Easing, and ways of delivering QE which do not alienate your voters by appearing to favour the bankers. Finally, the Green Paper shows that with enhanced and more modern accounting, the budget deficit can be eradicated over the life of this parliament and it suggests better methods for measuring national wealth to evidence the success of these changes.

All in all, it is an excellent time for the Treasury to do some high level scoping of the ways that dramatic change can be used to strengthen our position and in the process build that elusive and truly big Big Society. Mr Cameron will be very grateful, and so will we. You might even get to do another term of government if you get this right.