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Does the Co-op debacle show the age of the amateur is over? Does the Co-op debacle show the age of the amateur is over?
(about 1 hour later)
Paul Myners, launching his report on the management structure of the Co-operative Group this morning, had all the lofty irritation for the amateur of the (very) highly paid professional. "Some of them," he said, referring to the men and women of the Co-op board of directors who famously include a farmer, a plasterer and a retired BT engineer, "didn't know a debit from a credit". They had wiped out half the group's net worth – more than £3bn – in just a few years, he went on, and a once proud operation that used to pay out millions in dividends to its members each year was now on its knees.Paul Myners, launching his report on the management structure of the Co-operative Group this morning, had all the lofty irritation for the amateur of the (very) highly paid professional. "Some of them," he said, referring to the men and women of the Co-op board of directors who famously include a farmer, a plasterer and a retired BT engineer, "didn't know a debit from a credit". They had wiped out half the group's net worth – more than £3bn – in just a few years, he went on, and a once proud operation that used to pay out millions in dividends to its members each year was now on its knees.
A bit harsh, you might think, when most of the loss is from the banking arm's catastrophe, and even global supermarket brands like Tesco are suffering from the impact of competition with the discount stores. But Lord Myners has a case to make and it is not a palatable one for Co-op traditionalists. As far as he's concerned, the age of the amateur is well over. A bit harsh, you might think, when most of the loss is from the banking arm's catastrophe, and even global supermarket brands like Tesco are suffering from the impact of competition from discount stores. But Myners has a case to make and it is not a palatable one for Co-op traditionalists. As far as he's concerned, the age of the amateur is well over.
The Co-op board itself now has to make recommendations for reform to the annual general meeting in 10 days' time, based on but not necessarily including all of the Myners package. The turkeys can try to vote against Christmas, but the weight of opinion has settled on the view that without a sleeker and more professional system of governance to get a grip on the Co-op Group's grim financial predicament, Christmas will come anyway. The Co-op board itself now has to make recommendations for reform to the annual general meeting in 10 days' time, based on but not necessarily including all of the Myners package. The turkeys can try to vote against Christmas, but the weight of opinion has settled on the view that without a sleeker and more professional system of governance to get a grip on the Co-operative Group's grim financial predicament, Christmas will come anyway.
Yet if even the Co-op, the great have-a-go self-help movement, has now got too technical to be in reach of the amateur, the options are becoming dangerously constrained. Like the inexorable shift of science into the lab and away from the Enlightenment geniuses who discovered the laws of physics while pottering about in the garden, or, say, Sir John Reith setting up the BBC on the basis of an interest in radio signals, the chances of doing something without actually having been trained and examined in it first are increasingly remote.Yet if even the Co-op, the great have-a-go self-help movement, has now got too technical to be in reach of the amateur, the options are becoming dangerously constrained. Like the inexorable shift of science into the lab and away from the Enlightenment geniuses who discovered the laws of physics while pottering about in the garden, or, say, Sir John Reith setting up the BBC on the basis of an interest in radio signals, the chances of doing something without actually having been trained and examined in it first are increasingly remote.
It has become a cliche to insist that even politics, the Little Bighorn for the enthusiastic amateur, has capitulated to the drift to professionalisation. It has become almost traditional for aspiring MPs to take low-paid or no-paid jobs as special advisers to ministers, or to work in the offices of backbenchers or make tea in party headquarters.It has become a cliche to insist that even politics, the Little Bighorn for the enthusiastic amateur, has capitulated to the drift to professionalisation. It has become almost traditional for aspiring MPs to take low-paid or no-paid jobs as special advisers to ministers, or to work in the offices of backbenchers or make tea in party headquarters.
But look a little further and it becomes clear that parliament is exactly where amateurs still hold sway. Even the questionable skills that they might have brought to the job, a knowledge of low politics and political organisation, are now under threat from the rise of the maverick. The one-off, the independent minded ingenue now trumps the central office clone.But look a little further and it becomes clear that parliament is exactly where amateurs still hold sway. Even the questionable skills that they might have brought to the job, a knowledge of low politics and political organisation, are now under threat from the rise of the maverick. The one-off, the independent minded ingenue now trumps the central office clone.
The thirst for authenticity, for an experience beyond a desire to do good and to get on, not necessarily in that order, is opening doors for people like the GP-turned-Tory backbencher, Sarah Wollaston. And, also Nigel Farage. But if outsiders are good for the democratic process, it is not axiomatic that they are good for parliament. Parliament still ends up with about the same degree of expertise as the average Co-op regional board, although in less interesting fields.The thirst for authenticity, for an experience beyond a desire to do good and to get on, not necessarily in that order, is opening doors for people like the GP-turned-Tory backbencher, Sarah Wollaston. And, also Nigel Farage. But if outsiders are good for the democratic process, it is not axiomatic that they are good for parliament. Parliament still ends up with about the same degree of expertise as the average Co-op regional board, although in less interesting fields.
And where the cult of the amateur really might be questioned is at the top. The Co-op at least has professional executives. Increasingly, ministers behave like executives but without the skill set, demanding fabulously complex policy implementation from a position of political prejudice.And where the cult of the amateur really might be questioned is at the top. The Co-op at least has professional executives. Increasingly, ministers behave like executives but without the skill set, demanding fabulously complex policy implementation from a position of political prejudice.
Ministers redesign the benefit system and reform the NHS, yet have absolutely zilch in the way of training or expertise, making decisions that will shape the lives of millions sometimes for the good, sometimes disastrously. They know no more about, say, letting a multimillion pound contract than they do about where flood defences most need to be built. They treat criticism as opposition. Ministers redesign the benefit system and reform the NHS, yet have absolutely zilch in the way of training or expertise, making decisions that will shape the lives of millions, sometimes for the good, sometimes disastrously. They know no more about, say, letting a multimillion pound contract than they do about where flood defences most need to be built. They treat criticism as opposition.
Like the business of the Co-op Group, running the country has got more complicated. So if Myners is right that Co-op directors need experience and training to hold the management to account, do ministers too? Like the business of the Co-operative Group, running the country has got more complicated. So if Myners is right that Co-op directors need experience and training to hold the management to account, do ministers too?