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Liz Kendall’s policies could lead to back-door privatisation, warns Co-operatives UK chair | Liz Kendall’s policies could lead to back-door privatisation, warns Co-operatives UK chair |
(5 months later) | |
Liz Kendall’s ideas about reforming the economy by promoting co-operatives are vague and could lead to back-door privatisation, the head of the UK’s co-operatives federation has warned. | Liz Kendall’s ideas about reforming the economy by promoting co-operatives are vague and could lead to back-door privatisation, the head of the UK’s co-operatives federation has warned. |
Nick Matthews, the chair of Co-operatives UK, praised Ms Kendall for consistently raising the issue of more economic democracy but warned that a badly designed policy could lead to public services being sold off. | Nick Matthews, the chair of Co-operatives UK, praised Ms Kendall for consistently raising the issue of more economic democracy but warned that a badly designed policy could lead to public services being sold off. |
“To be fair, Liz Kendall, a Co-op Party member, has talked about co-ops from first being elected,” he told the Morning Star newspaper, praising a chapter of a book she had written on the subject. | “To be fair, Liz Kendall, a Co-op Party member, has talked about co-ops from first being elected,” he told the Morning Star newspaper, praising a chapter of a book she had written on the subject. |
“However these ideas are rather vague. Getting venture capital out of services like adult social care is a key objective, but the devil is in the how. | “However these ideas are rather vague. Getting venture capital out of services like adult social care is a key objective, but the devil is in the how. |
“There are co-op options but they require legal definition and changes to procurement rules to stop them being a staging post to privatisation. In order to work her ideas need much firmer foundations.” | “There are co-op options but they require legal definition and changes to procurement rules to stop them being a staging post to privatisation. In order to work her ideas need much firmer foundations.” |
The leadership candidate says she would hand power to people by promoting cooperative working practices in public services. She has also called for employee representation on the boards of companies. | |
Ms Kendall has written about her ideas for co-operatives in public services in a chapter for a book published by the think-tank Policy Network in 2014. | Ms Kendall has written about her ideas for co-operatives in public services in a chapter for a book published by the think-tank Policy Network in 2014. |
She wrote an article for the Morning Star newspaper today arguing that her economic policies would change the basis of power in the UK. | She wrote an article for the Morning Star newspaper today arguing that her economic policies would change the basis of power in the UK. |
"Only by radically changing where power lies will we make Britain a more equal place in which to live," she wrote. | "Only by radically changing where power lies will we make Britain a more equal place in which to live," she wrote. |
"I want to revive the Labour tradition of people power, taking us back to our party’s roots in trade unions, co-operatives and mutuals. I want to give voice to millions of people who see the changes they want to make in the world but feel powerless to do so. And I want to see workers having a far greater say over and stake in the companies they work for." | "I want to revive the Labour tradition of people power, taking us back to our party’s roots in trade unions, co-operatives and mutuals. I want to give voice to millions of people who see the changes they want to make in the world but feel powerless to do so. And I want to see workers having a far greater say over and stake in the companies they work for." |
Under the Coalition similar policies of public sector mutuals were promoted by the Government, most notably health minister Norman Lamb. | Under the Coalition similar policies of public sector mutuals were promoted by the Government, most notably health minister Norman Lamb. |
Co-operatives come in two broad flavours: workers’ co-operatives and consumer co-operatives. | Co-operatives come in two broad flavours: workers’ co-operatives and consumer co-operatives. |
In workers’ co-operatives employees own and run the firm on an equal basis rather than shareholders; in consumer co-operatives people who use the service provided by the firm have some stake in its running and own it collectively. | In workers’ co-operatives employees own and run the firm on an equal basis rather than shareholders; in consumer co-operatives people who use the service provided by the firm have some stake in its running and own it collectively. |
Co-operatives UK is the main national member organisation for co-operatives and is entirely separate from the well-known Co-operative Group chain of grocery stores and other services. | Co-operatives UK is the main national member organisation for co-operatives and is entirely separate from the well-known Co-operative Group chain of grocery stores and other services. |
Ms Kendall is one of four candidates for the Labour leadership election. The others are Jeremy Corbyn, Andy Burnham, and Yvette Cooper. | Ms Kendall is one of four candidates for the Labour leadership election. The others are Jeremy Corbyn, Andy Burnham, and Yvette Cooper. |
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