Wednesday 20 May 2009

Blue Ocean Thinking Needed For Politics?

I have blogged on the concept of Blue Ocean Thinking before, the idea that you can move from a world of high competition and low profitability in business to a new market of low competition and high profit opportunity. Some would argue, politics needs a similar makeover.

Yesterday, we saw an historic precedent as the Speaker was forced out - the first time such an unthinkable act has happened in some 300 years of politics. As much as there was baying for his blood after his recent performances, there was an equal rush to praise him by the same people while there is a growing opinion that he was pushed out as the scapegoat so that the public can see something tangible happening.

This way, it seems, few others will lose their cushy jobs thanks to Michael Martin falling on his sword.

Mixed Messages

I don't think this addresses the problems. While we had no real contrition from the Speaker, he was just sorry to have to go rather than for his actions or lack of them, Gordon Brown, while outlining some reforms and telling us what Hazel Blears did was 'unacceptable behaviour', he basically said she had done little really wrong.

It clearly is not the case and once again brings us back to a basic issue. Politicians seem not to understand that it is not about unacceptable behaviour - we are well passed that point. What it is about is clearing out the wrong doers completely. Only that way can we get some trust back into the whole system.


I also dispute Brown's belief that Hazel Blears has done nothing wrong - that is by his judgement only. The fact is that she deliberately deceived the taxman by declaring her parliamentary second home as her main residence. You have to know the difference between to the two systems in order to have claimed expenses on a second home and sell it as a main residence in order to get the benefit of not paying CGT - you cannot do it 'by mistake'.

In fact, you have to a pretty in-depth knowledge of both the Green Book and Tax Law in order to have worked the scams - because there are two in play here, only one of which Blears has offered any money back for. She paid the CGT knowing full well she had avoided paying it on what was her supposed main residence but she had claimed second home allowance on it also - which she did not pay back. By exploiting the fact they are two different systems she played us neatly and only paid back the lesser amount when, in fact, she should have paid back both. If she gave a damn, that is, but according to her the PM 'Thinks she's doing a great job'.

In the real world that is deliberate tax evasion and is against the law. Paying the amount in retrospect does not mitigate the intent - and the intent to defraud the tax man was the issue here.

This is at the heart of problem politics faces. It could take a General Election to flush out the offenders but this does not actually address the problem. At the constituency level, we are going to get misplaced loyalties over the law. Clare Moran is a case in point - while the country is outraged at the magnitude of her crime, her local party have endorsed her candidacy.

It's the Jeffrey Archer 'Lovable Rogue' instance all over again. The silly idea that a minor misdemeanour like defrauding the taxpayer should not get in the way of the fact that she is generally a pretty good egg really. The truth was illustrated when the BBC interviewed 64 people in Eliot Morley's constituency who had voted for him - 63 of them said they would not vote for him again.

That's the difference between politics and reality.

You see, it is not an issue for the parties to decide who is guilty or not - it is for the public to decide. By all means stick Morley, Moran and Blears up for re-election but they are asking for trouble and they will likely get it. Rather than these people resigning aide jobs or being suspended from the whip or the party, they should be dropped like hot potatoes, regardless of who they are.

The 'Gentleman's Club' that Brown refers to is still at work. These people are beyond the law and common decency and they should not be judged by their peers or bosses in Parliament or their parties, but be answerable to the law and the people.

The Interim Reforms

On the same day that the Heads of the parties agreed interim reforms which should get backed shortly, the Telegraph listed 12 'sins' or 'scams' that were popular amongst MPs. The reforms may cut down on some claims and try to prevent flipping but you have to wonder how clear and specific these reforms have to be. If you look into the Green Book and Tax Law, it is very clear that there was enough clear guidelines about this. It is why even interim reforms do not cut it.

Here are for instances. MPs who live within commutable distance from London should not be entitled to a second home allowance at all. Those MPs who stayed in 'holiday homes' while their sales went through would not be stopped. Those who give themselves a golden handshake like Tom Dalyell's bookcases just weeks before his retirement, like Mandelson claiming for house repairs after he resigned as an MP to sell his house for £136,000 profit, like those who claim for food without receipt even when the House is not sitting - these people are still not dealt with.

And it is clear why. MPs have, for the most part, never been in business and had to watch and account for every penny they spend as it is the employer's and so they do not understand the concept of using money that is not theirs. Rather like spending £300bn on bank bail outs and not on proper clothing for troops, they have a different view on life. When Geoff Hoon made sure his expenses were maximised for his personal comfort and gain, kids were being shot at in the wrong gear in Iraq.

Politics needs to find its Blue Ocean and re-invent itself.

What the Telegraph has exposed is that for years the country has believed that there were higher things to consider when governing and so you trust people when they says Iraq has WMD, you trust them when they take that back and say there were other good reasons, you trust them when they send kids to Afghanistan that they have given them the best protection they could. But the reality was that there was no higher things to consider as these MPs were just common, gutter crooks looking after themselves and voting for whatever Blair or Brown wanted. Their consciences had long since been bought as part of the elite club and their supposed free-thinking minds taken over.

The public deserve better than this even if they did get duped. The Telegraph has done us a great service and if money was paid, then it was in the best of causes. We have got far more payback in our tax savings than could have been paid.

It is time for Politicians and their apparatus to take a long hard look in the mirror and consider whether they could live with themselves. If they can then they ought not to be trusted in politics because it shows they have no conscience.

Let us hope that the people get to decide soon enough because we cannot trust that anyone is acting in our best interests right now, no matter what problem they are trying to solve. It is time we had our say.

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