BBC On The Record - Broadcast: 27.02.00



=================================================================================== NB. THIS TRANSCRIPT WAS TYPED FROM A TRANSCRIPTION UNIT RECORDING AND NOT COPIED FROM AN ORIGINAL SCRIPT; BECAUSE OF THE POSSIBILITY OF MIS-HEARING AND THE DIFFICULTY, IN SOME CASES, OF IDENTIFYING INDIVIDUAL SPEAKERS, THE BBC CANNOT VOUCH FOR ITS ACCURACY .................................................................................... ON THE RECORD RECORDED FROM TRANSMISSION: BBC ONE DATE: 27.02.00 .................................................................................... JOHN HUMPHRYS: Good afternoon. The Labour Party is one hundred years old today... and there are celebrations all over the country. We'll be looking at how the party - and its policies - have changed over the century with a man who's been a member for nearly half that time... the Deputy Prime Minister John Prescott. And what does "new" Labour stand for today? That's after the news read by Nicholas Witchell. NEWS HUMPHRYS: A hundred years old today... but it now calls itself "new" Labour. Tony Blair tells us that without that transformation the party would not have been elected to power. And it's true that Labour has been enjoying a period of popularity with the voters the like of which it has never seen before. But has it found that new popularity and lost its soul... forgetting what it was created for? Made a Faustian pact with its old enemies? The Deputy Prime Minister John Prescott is going to be with us throughout the programme to consider that and other questions on where the party and the government is going. But first this report from Terry Dignan. TERRY DIGNAN: A hundred years ago a party for working class trade unionists was formed. Today it seeks to represent all classes. It's leader has built a coalition of support the like of which the party's founders could only have dreamed of. But at what cost to its original purpose? Labour came into existence in towns like Swindon to create a more equal society. New Labour makes a fairer society, not equality, its aim. It rejects the old Labour idea of making the poor richer by making the rich poorer. It wants to be the party of the affluent as well as the poor, a one-nation party, or as some would put it, a party without enemies. Julia Drown won Swindon South for Labour at the last election. Although it's a Southern boom town, Swindon contains deep-rooted poverty. Failure to win elections has meant Labour has only rarely in its history been able to help society's less well-off. JULIE DROWN: Well the Labour Party's always existed to help the most disadvantaged people, many of whom live on estates like this but also to increase the prosperity of the country as a whole. But we haven't in many elections convinced people that that is what we're about and so we needed to change to prove that. I think people did think oh yes they might help the unemployed, they might help lone parents, but they'll ignore the rest of us. I think we just never really convinced them. We never got the message across that we were for the many, for everybody. DIGNAN: Indeed it took the party nearly half a century to win an election. The 1945 Labour Government nationalised industries like coal, created a National Health Service and sought to eradicate poverty. This was a party which believed in fighting inequality by redistributing wealth and intervening in the economy. BRIAN BRIVATI: It believed there were answers to economic questions which involved State intervention to promote greater equality. It's a bit of a mouthful but using the State, using government to promote equality of outcome, that's what made it different from other political parties. DIGNAN: 1976 was a watershed for the Labour movement. Cutting spending at a time of high unemployment, Labour was accused of betrayal by public sector unions. Strikes in the Winter of Discontent led to defeat for Jim Callaghan in 1979. The party split. In 1983, committed to high taxation and public ownership, Labour under Michael Foot lost disastrously. Swindon went Tory. We asked one of the town's ad agencies, Emery Mclaven Orr, to show how they would have illustrated Labour's unpopularity in the '80s. ACTUALITY: Left-wing, Communism, the Red Flag, Red Ken..........." DIGNAN: But back in the eighties, Labour's new young leadership had already got the message. If it was ever to win power again Labour would have to accept that many voters no longer felt attached to nationalised industries and the welfare state. That was the advice from those closest to Neil Kinnock. CHARLES CLARKE: It was necessary to look, in a managerial way, I suppose, much more ruthlessly at the way in which some of the great collective institutions had actually built up and whether they were really serving the interests of the individual citizen rather than those who simply were working for them. Over the thirty-five or forty years since 1945 there was a need to look again at the way that the great organisations which had been established - the nationalised railways, the nationalised health service and so on, were they really working in the most effective way or had they become sclerotic in some respects. DIGNAN: Kinnock abandoned the red flag for a red rose, and started the long haul to making Labour electable. It meant rejecting state intervention in the economy and allowing the public sector to contract out services to private companies. CLARKE: What did arise I think, was a sense that the market could play a more effective role in some areas of public activity where traditionally many, many had thought the market had no role whatsoever to play. So there was a reassessment of the role of the market, an acknowledgement of the positive contribution the market could make. DIGNAN: But Kinnock still lost. The union block vote was ditched by his successor John Smith. To the irritation of Labour modernisers, Smith rejected further radical change. Following his death came Blair and New Labour. Eager to attract affluent voters, Blair reformed the party's Clause Four commitment to public ownership and promised not to raise income tax. But what did this mean for the poor? This self-help shop is in one of Julia Drown's poorest estates. It's a place to get advice on how to get out of welfare dependency and into work. That's also New Labour's approach to tackling poverty. Gone is the idea of raising the living standards of the least well-off by redistributing wealth from the better-off. DROWN: Well what the Government is wanting to do is to make it very clear that the route out of poverty is to get into work - for everybody who can work. And it has actually been a successful policy already. I mean here are things like the New Deal for Lone Parents, enabling them to get into work and the New Deal for the Young Unemployed, for the long-term unemployed, really is equipping people with the skills they need to be able to get into work. BENJAMIN WEGG-PROSSER: What we have is a party which has changed and which has modernised. It's brought in new policies but it's values have remained, the values of social justice, of fairness, of equal opportunity exist. What has changed is the way in which you get those things. DIGNAN: But those who know the party's history disagree. They argue that New Labour's attitude to the poor has changed quite fundamentally. Even the red rose now seems to belong to another age. BRIVATI: Blair doesn't believe, and Brown doesn't believe in equality of outcome. They believe in equality of opportunity. Now that can make huge differences to millions of people's lives, but it's different. It's fundamentally different. DAVID MARQUAND: I think they see it like this. Here we are in this ferocious, savage, highly-competitive global economy. That's a fact of life, we didn't create this but we live in it, it's a jungle. It is not about, sort of, taking money away from the very successful to, to, to pour it back into the disadvantaged. It's is about giving the disadvantaged the tools with which they can themselves struggle and compete, if you like, in, in this new global marketplace." DIGNAN: For most of its hundred years Labour has struggled to win over the aspiring voters of the suburbs and ever-expanding private housing estates. In towns like Swindon, New Labour has made keeping the trust of these voters its main objective. What that appears to mean is constantly re-assuring them about sensitive issues such as taxation.. DROWN: Well, they didn't completely trust the Labour Party - I think there was a particular issue on tax. The Tories' double whammy posters and so on did have a big effect and it was reinforcing some of their fears over the Labour Party. People here work, work hard and they want to be rewarded for, for being in work; and, and in previous elections they have been worried that, that Labour would just keep taxing them." DIGNAN: So how would our Swindon advertising agency market today's Labour Party? By branding it as a party that appeals to rich and poor alike. Those who were pushing for change in the Nineteen Eighties believe Labour had to create this new coalition if it was ever to win power again. CLARKE: The great mass enterprises of production which were characteristic of our economy and which were the basis, the core of Labour support, have gone - as the economy has changed, technology's moved forward, and so on. So Labour has had to think, how can we build a coalition across a wide range of different types of people in different types of occupation which is different from our traditional coalition - but focused on the same goal, to achieve a just society which means those who are worst off get a better crack DIGNAN: New Labour's greatest strength - it's ability to appeal to a wide coalition of voters - could, potentially, be its biggest weakness. Trying to please everyone, it's argued, may mean avoiding tough decisions. ACTUALITY: For you, for everybody. Both individual and inclusive of everyone else. BRIVATI: The New Labour Party in my view, is a very, very, broad church. It's so broad, it's almost meaningless the kinds of constituencies it's trying to represent. Much broader than it's ever tried to be in it's history before. What the Labour brand is trying to represent are really some very, very, diluted values. Compassion, maybe hope, maybe but, they're so diluted I mean no politician is gonna stand up and say, "I'm against compassion. I'm against hope." TONY WRIGHT: You can't just live in a world I think where you think you can, you can as it were please everybody. There comes a point where you have to be absolutely up front about what you are doing. It does occasionally say things, mean saying things to people that, that may seem difficult; that may on the face of it seem unpopular; that some focus group may have told you might cause a bit of trouble - but, but I'm afraid political leadership involves that." DIGNAN: The old Labour Party made the people living in council estates like this one their main priority. New Labour also wants to help the least well off but not it seems by asking the affluent to make sacrifices. Increasingly, this is seen as the biggest source of tension within the party. DROWN: We got our fingers so burnt in, in '92 that you know you can't help thinking people - in one survey will say oh yes I'll pay a penny more on, on tax", and they - it's as if somehow in their mind they think that it's just one pence, and then when it really gets to the ballot box and that paper they, they, they haven't voted for it - the British people haven't voted for those taxes and it is because they want to be rewarded for working hard. WRIGHT: What that doesn't mean though is I think that you become immobilised because you're, you're, you're frightened of elements of that coalition fracturing if you move in a certain direction rather than another. I mean I just don't think it's the case that middle class people, for example, are prepared to see basic public services run down, come under severe funding pressure, because we dare not confront an argument about taxation . I mean that's what political leadership is all about; we have this huge majority, we're doing awfully well, but I think a little bit more courage on that front is probably the key to our longer term success." ACTUALITY: (MUSICIANS) "One, two, three." DIGNAN:: The economy of Wiltshire is growing fast and tonight Julia Drown celebrates with the county's businessmen and women in a Swindon hotel. Regarded by Tony Blair as an essential component of the New Labour coalition there's no sign they're going to be asked to pay more for a fairer society. WRIGHT: I'd like to see Tony Blair make some big speeches actually saying yes we're trying to tax people sensibly, we're trying to tax in new ways to, to raise the money that we need. But actually taxation is a kind of civic responsibility - because if you don't do that, you've got every party in the land simply following a tax cutting agenda. I think that's the end for a party of the, party of the Left." DIGNAN: A hundred years ago Labour set out to create a more just society. Tony Blair says it failed largely because of its inability to succeed at the polls. Blair's created a coalition of society's winners and losers. But has it been at the expense of enfeebling the party's values and discarding its original purpose. HUMPHRYS: Terry Dignan reporting there. JOHN HUMPHRYS: So John Prescott, the Labour Party has changed, clearly. You - I think it was you - that coined the phrase 'Traditional values in a modern setting' that was yours wasn't it? JOHN PRESCOTT: Yes. HUMPHRYS: But the worry has got to be that by trying to be all things to all people, you can't really assert, you can't shout from the roof tops those traditional values that have got you to where you are today and that's got to be a bit of a worry hasn't it. PRESCOTT: I don't accept that. If our traditional values, the ways that have provided people, dealt with the problems at the beginning of the century - mass unemployment, squalor and no housing, slums kind of situation, access to education and health. They are still the traditional values that I talked about which Keir Hardie had in his manifesto, was largely implemented by that Labour Government in 1945 and that's why we saw public provision so important, for education, for the Health Service and even the housing estates, we just didn't convert to them, we did that to get people out of slums into decent housing. Now in all those senses health, education, housing are still in our manifestos, they are in our little card that I run around the country with. So those traditional values are there but sometimes in the providing of them you do it within the modern setting, though with education and health we are clearly putting bigger resources through public facilities, through the taxpayers' payment to provide those things that are needed for the equality of opportunity and for the securing of social justice, of which the Labour Party is about at the beginning of the last century and indeed the beginning of this century. HUMPHRYS: But perhaps the big difference is this. As you say those problems existed then, they exist today, many of them to a much lesser extent, clearly, they have to be paid for. The old Labour Party was quite clear about it, redistribution was the way to tackle it, Richard Crossman..Tony Crossman used to talk about it and that was what you were proud of standing for. Now, is that something the Labour Party still believes in - redistribution from the rich to the poor. PRESCOTT: Well it wants to see that equality and the equality of opportunity and reducing the disparities between the haves and the have-nots but we also emphasise that we are the party of the many. Let me deal directly with the point, if you take housing for example, a very important consideration, we have taken five billion pounds of money that was held in local authority accounts, now to begin to rebuild and redo housing that had been allowed to go into decline. That didn't require any more money from the government, it did a different form of priorities. The forty billion pounds now, that Gordon Brown has got into health and education, shows again our priorities for those two areas which are about the quality of life - health, education and jobs - because of prosperous economies. And prosperous economies are an important point of that. We have got something like eight hundred thousand more people back in work, so if we want to talk about equality of opportunity we want to talk about the quality of life, having a job is crucial, living in a house, access to education and health are crucial parts of Labour's manifesto and we still do it. Now, as for the redistribution and dealing with the poverty industry, which I think is a very important matter, we have of course minimum wage which Keir Hardie called for and it's Tony Blair's government's that's actually implemented it so fair pay, out of poverty pay is an important part. The way that we have dealt with the pensions, the Family Income Allowance, the Family Allowances, the Workers' Family Credit, now which will guarantee at least ten thousand in work. That is the way we are making sure that people are not driven into poverty pay and meets the kind of equality of approach to be fair in a society. HUMPHRYS: But the old way of doing it was to make it necessary, to make the rich a bit poorer so that the poor could get to be a bit richer and old Labour accepted that if that had to be done with direct taxation then so be it. But when you came into power, you not only accepted your predecessor, the Conservative Party's direct taxation levels, you actually set about reducing then. So that proves doesn't it, that you are nervous. You are desperately nervous of this concept of direct redistribution. PRESCOTT: Well no, I think what Gordon Brown did do of course, as you suggest, he reduced the lower level ten p. We reduced the basic tax, it was a commitment that we gave in the election, it takes into account the new circumstances we find ourselves as a political party and indeed the global economy we operate in. HUMPHRYS: And the rich are benefiting as well as the poorer.. PRESCOTT: Well that's true, you could argue that case of course and in fact what we have seen is we are providing the money for public services on a scale that we haven't done before quite frankly, both in health and the education. More needs to be done, but we are doing that. We have also found new ways of raising resources for the public private partnerships in our public facilities like the Underground or the areas of public service industries which were largely dependent on the taxpayer for the investment and it failed to get the best of the provision of that investment. So all these things are a different way of doing things but our traditional values are still there, heavily at the heart of our manifesto programme which is about equal opportunity, it is about social justice and distinguishes very much from the other political parties. HUMPHRYS: Right, but the approach is different. Let me quote you what Tony Blair - Tony Wright (Freudian slip) Tony Wright said in that film and it rather suggests that he's whistling in the dark, bearing in mind what you've just been saying: 'I'd like to see Tony Blair saying we are trying to tax in new ways to raise the money we need. That taxation is a civic responsibility' - that's the important one - 'taxation is a civic responsibility because if you don't do that you've got every party in the land simply following a tax cutting agenda and that's the end of the party of the left'. He has a point there doesn't he. PRESCOTT: Well he has a point if you traditionally define it in that way. The tax burden we are talking about is the direct one and there's direct and indirect taxation systems, there are new ways of raising money which I have been referred to on the public private partnership. The Underground for example wants seven billion pounds, it doesn't come from that. So it's the balance of expenditure, government's expenditure and it's government take from tax, or indeed an increase in wealth in society, it's balancing those and provided the outcome is improving it for the many in this country, I think that's justified and if it gives the priorities to provision of health and education and homes, I think that shows the social justice agenda. HUMPHRYS: But it's goodbye to redistribution in the sense that the Labour Party has always understood it. PRESCOTT: Well you redistribute in different ways, whether it's through greater accountability on power, or whether it's in different forms of.. HUMPHRYS: I did qualify the question by saying.. PRESCOTT: ...narrow interpretation.. HUMPHRYS: ..well in the way that the Labour Party always accepted it. PRESCOTT: Well taxation has its part to play, it's still a progressive taxation, it could be more progressive you could argue but.. HUMPHRYS: ..indeed I could.. PRESCOTT: ..it is a progressive tax system but I think what we try to do is to find different ways and forms of financing.. HUMPHRYS: Stealth taxes comes to me of course... PRESCOTT: Well that is the rhetoric that is used on these occasions. All governments have been involved in different forms of taxation and they will still continue... We still believe in a progressive taxation, they will argue about the levels and indeed we do, between the political parties and within parties, but it's a lot better and the Labour Party now finds itself in a stable economic situation where the creation of wealth is far better. The growth in our economy is good and we'll reduce the amount of debt so we don't pay as much in interest and we transfer that money to pay for things like health and education. That is redistribution in the true term of the word. HUMPHRYS: All of which of course needs, you'd be the first to acknowledge, much more money in the years to come, a greater health and education and all those other ....... PRESCOTT: Better than keeping people in mass unemployment. It will all bring them opportunities of jobs so you're not putting the money into maintaining... HUMPHRYS: You don't actually have a commitment to full employment do you, not a commitment, it's an aspiration not a commitment. PRESCOTT: Well, I don't know what you call it. It's the highest level of employment that we've secured here. HUMPHRYS: But it is not a commitment... PRESCOTT: It's also eight hundred thousand more than when we came in, and we're moving to more and more full employment. HUMPHRYS: But the old part y had a commitment to full employment didn't it? PRESCOTT: Well, the old party produced full employment, but they were very much in a controlled national economy. We're in a global economy which is much more considerable, considerably different for those circumstances, but there's no reason why we can't believe that people should have a right to work and help to provide the full employment as they did in forty-seven, as we do now. HUMPHRYS: Yes, the right to work of course is very different from an absolute entitlement to work, as a result of the commitment which you are not prepared to make and have never made.. PRESCOTT: Well, at these levels of employment we've got at the moment it's highly difficult to define.... HUMPHRYS: ........the principle - we're talking about principles here. PRESCOTT: I know, I can remember when it was full employment John. They used to argue whether two-and-a half per cent unemployed was the amount of money that you had when you balanced inflation and the rest of the economy, but what is true - eight hundred thousand more people in work - it's the highest level of employment, less spent on unemployment, more people into work. That's equality of opportunity. HUMPHRYS: And that is one of the ways... PRESCOTT: That's where we make the difference. HUMPHRYS: And that's one of the ways in which you spend less money, so therefore you will have more money to spend on things like the public services, like bringing the NHS up to the standard that one of your values demands that it should be at. But that isn't happening, not happening yet because you are afraid to raise the money, the sort of money that Tony Blair admitted himself a few weeks ago was needed. He talked about - I know you told us you're putting more money in - everybody puts more money into the National Health Service. He said we need to put much more money in still to bring it up to the European level. Now, you're not going to that because you're afraid to raise taxes, as would have happened under the old Labour system. PRESCOTT: You must wait and see because the amounts of money that go into the public sector or the private sector are a matter of distribution from a government's point of view. If it wants to put more in health as Gordon Brown has done - over twenty billion pounds, however he raises that... HUMPHRYS: ... It's not.....quite. PRESCOTT: Over a three year period. I mean we're negotiating the next three years. There is the highest investment going into the Health Service, there are thirty more hospitals being built, so we've started, and we've only been in two and a half years. Now as to whether more resources are needed for the health, that's a very important point. People live longer, twice as long now as they did when Keir Hardie was talking about it. It means the demands on the Health Service has not, as Labour first thought if people are healthier there'd be less demand to put money into hospitals. No, no, medical science advances, people live longer, so it does demand more money. That's exactly what Tony Blair is saying. HUMPHRYS: And when he was challenged on that, and when he said yes, all those things that you've just said, of course it demands more money and will continue to demand more money he backed away from a commitment. The impression he gave in that interview that you'll remember as well as I was that it was a commitment, a real promise, a real pledge, a real commitment, it turned out not to be any of those things, it turned out to be a hope, an aspiration. PRESCOTT: No. We've made it absolutely clear we would continue to try and find more resources for health. HUMPHRYS: ... will you find.. It's a commitment. PRESCOTT: Well, it's a commitment for a Health Service which was our creation. Let me make this clear to you John. We created a Health Service, not as Beveridge recommended when he talked of how we deal with the evils like disease. He had an insurance system. The Liberals wanted an insurance system, the Tories wanted an insurance system. HUMPHRYS: I'm not, not talking of any of that. PRESCOTT: I know, but there's an important point here. We created it on a Socialist principle, that is treatment based upon need and not your ability to pay. That means that we have to find the resources to meet that ever-increasing demand. Now one of the controversies I'm involved in is whether you can find money from the private sector for investment in public services rather than going to the Chancellor and asking for his money. If in fact we can do that whether it's the Underground, whether it's Nats, what I'm choosing to do, I'm trying to persuade others of, that that kind of priority in public expenditure relieves the Exchequer of resources, not to invest in trains, underground, but to put it into hospitals and education. It is a re-prioritising if you like, of government expenditure within the total amount of expenditure. HUMPHRYS: It is of course a lot more than that. I mean some people would argue of course in one sense it's mortgaging the future, but you see, one of your core... PRESCOTT: Everything mortgages the future. If you buy a house you mortgage the future. HUMPHRYS: Not if you pay for something immediately then you haven't. But... PRESCOTT: Don't just move off that. Thirty hospitals now are being used on private financing, right. That means you get the hospital now instead of waiting with an old decrepit hospital for twenty years. You just asked me first of all what the public want, and there's no doubt they want that, and secondly if you want good quality public services that is the way we find new ways of financing, it's traditional values in a modern setting. HUMPHRYS: In a modern setting - as we kicked off with. I knew you were going to say that. But let's look at this hugely important question of ownership. Now, you were proud of public ownership many years ago. You are now so embarrassed by the very notion of public ownership that you run a mile from it. I mean that is not just a hundred-and-eighty degrees, that's if it's possible more than a hundred-and eighty - you've gone away - even, even if, even if - let me finish the point - even if the public appears to want it, as is the case with the London Underground. You've run away from it. PRESCOTT: Well, I haven't run away..... HUMPHRYS: Because you're embarrassed by public ownership. PRESCOTT: No, I'm not embarrassed, in fact - but wait a minute. The London Underground is actually remaining in public ownership. Can I say that? It's not got shares, it's not set up to be privatised. It is owned by Londoners. All I've done is to say that when it was publicly owned Treasuries never ever found enough money to put the investment, that's why it's creaking and groaning. They never give more than two years. On this proposal we will be able to get the investment guaranteed well over twenty years, we will modernise the system and the assets once modernised, like a mortgaging facility come back to London. It's not privatised. HUMPHRYS: Well, you'd better tell all this to Frank Dobson because he's now running away from this notion. He seemed to be on board with it, but now he seems to be running away from it. PRESCOTT: No, what he said is that he wants to ... HUMPHRYS: He wants to have another look at it. PRESCOTT: No, all he's said is he wants to make sure it's the best value for money. No, wait a minute... HUMPHRYS: Well, he was convinced...... PRESCOTT: I know, ... no, no. When Frank was doing hospitals he was doing precisely that. I am required by parliament to be able to produce a price for a product in this case which is best value for the taxpayer and the community. If I can't prove that then it would fall. Some hospitals fell because they couldn't prove it was best value, but don't run away, it's still publicly owned, publicly accountable, run by Londoners, and they'll get a modern system back, and that's why I'm critical of the public ownership. Public ownership never ever gave investments, so actually were water, electricity or Underground more than two years. I want to break out of that, to make sure we get the best of the public sector and the best of the private sector working in a partnership. HUMPHRYS: And you've explained all that to Frank Dobson. Presumably that's what you're going to tell Ken Livingstone when you meet him this week. PRESCOTT: ...no, no, no, no, no, no HUMPHRYS: What are you going to say to Ken Livingstone, look, I'll do some of the things that you want. PRESCOTT: No, no, look, look, the public/private partnership was in our manifesto. Ken says he supports manifesto. It's not.... HUMPHRYS: ......no concessions to him than at all PRESCOTT: ......wait a minute, wait a minute, it's passed in legislation, Ken voted for it, I voted for it, Frank Dobson voted for it..... HUMPHRYS: What's the point of meeting him them. PRESCOTT: Well, I'm not meeting him to discuss that. I wear my Deputy Leader hat, and I'm talking to him about the party considerations, and I hope Ken, who signed up for the manifesto, who signed up to agree the election result, will now reflect on this position and not join those who walk into the wilderness. It was Ken who said, I was born Labour, I'll die Labour, and I hope that's what Ken will do, come back, join, make sure he sticks with us and get behind Frank Dobson. I'm not discussing any manifesto commitment, I can't change the manifesto any more than he can. Party members decide our manifesto. HUMPHRYS: So it's back off to Ken Livingstone, back off, or else. PRESCOTT: Well it's nothing to do with the tube, it's to do with.... HUMPHRYS: ...no, no, I'm saying, what you're saying to Ken Livingstone is knuckle down.... PRESCOTT: .....I'm saying, Ken, you've always said you are a Labour man, you wrote up and said you would sign the election of this, you'd accept this election result, you signed up for that, you signed up to say you accept manifesto commitments, all those now have been decided, why are you not now joining with us to fight the Tory candidate and .... HUMPHRYS: .......doesn't seem a lot of point PRESCOTT: .......and make sure we have a Labour man. HUMPHRYS: Doesn't seem a lot of point in meeting him does there because he knows that's your view, you've made it clear in very strong language over the last weeks. PRESCOTT: I know, but I didn't arrange this meeting, the General Secretary of the party arranged it... HUMPHRYS: ......so you don't want it.... PRESCOTT: .....and asked would me.... I would always meet with people I hoped would stay in the Labour Party. There are many people who have left. You know, you've got, you've got Molesley on the extreme right went out and they got lost, you've got Hatton on the extreme left, if you like, one way, and somebody like David Owen in the middle, they've all left, but eventually the Labour Party's marched on, delivering social justice, and I say to Ken, stick with us Ken, you're a Labour Party guy, let's make sure Labour wins this election. HUMPHRYS: Alright, well let me move on at that point to another area, because you are going to stay with us for the rest of the programme I am happy to say. HUMPHRYS: The most common charge levelled against the leaders of New Labour is that they are control freaks... that the people who've made the party what it is over the years who joined in the arguments, contributed to the decision-making are now pushed to one side... regarded, if they're regarded at all, as something of a nuisance. Is the party beginning to pay the price for that, well that's something else I'll be putting to Mr Prescott after this report from Paul Wilenius. PAUL WILENIUS: Labour Party activists in Sheffield - they're out leafleting in the City Centre. But they've a funny feeling someone's watching. They're carrying out party orders. They're not easily put off, and they're still pushing the government's message across to the voters. But sometimes they're uneasy, worried someone's trying to control them. Is it Millbank? Party activists are getting tired of being seen, but not heard. SIR KEN JACKSON: The activists out there do feel that their view is not being heard, that they're not being listened to and when you try to change the role that they've got in terms of the communication within the party, then obviously they feel sensitive that that is not the way they want to go at this moment in time. LORD SAWYER: You've got to allow people to have their say which might not always agree with yours. I think this thing about being a control freak, which runs and runs, and runs, and never kind of goes away, needs to be addressed. WILENIUS: The Labour Party was formed 100 years ago, so its members and the unions could put their own people into Parliament. But Labour's history has been characterised by debate, division, and even open revolt against its own leadership. Tony Blair has acted to prevent such clashes, but some fear he will pay a political price for imposing such strict centralised controls on the party. It's this control from the centre which is upsetting so many activists like these. After a hard day trying to persuade the voters of South Yorkshire to keep the faith with Labour, they voice their own fears over the changes to the party. UNNAMED WOMAN: Unless you have that grass roots link in to the party, I mean, cheque book membership and armchair membership is fine, but we still those grass roots that sort of connect the party with other local organisations. UNNAMED WOMAN: If you're getting a resolution that comes forward for voting either at the constituency or then even ultimately at the conference, at least that's come through where everybody has played a role, everybody has played a part. I mean they could if they wanted just ignore us, they do, they do frequently just ignore us. UNNAMED MAN: Somehow one's given the idea from London that we don't want the party run by activists. UNNAMED MAN: I don't know about your wards, but in my wards, every year I'm finding less people willing to go out and spend their weekends and evenings working for the Labour Party. UNNAMED WOMAN: I think that we are more in touch and I think you ignore activists at your peril. BILL MICHIE, MP: There is a feeling that they are being taken for granted, they're being ignored, they're no longer people who have a message themselves that they can believe in and also to be part of the creation of that message, but are basically foot soldiers who are carrying out the orders from above. That's a real serious problem which I think will get worse unless the Labour Party wakes up to it. WILENIUS: But in the seventies, the problem for Labour was that the voices from the unions and local parties were far too loud. Party conferences were often tarnished by rows over policy with the serving Labour government over policy on pay , tax and spending, and debates could turn ugly, and result in open calls on Ministers to quit. LORD HEALEY: The civil war in the Labour Party for 10 years in the fifties led by Nye Bevan and then for 10 years in the eighties led by Tony Benn did enormous damage because people don't like a divided party. WILENIUS: Lord Healey knows that party reform was vital and believes Tony Blair has learned the lessons of those years. HEALEY: Obviously if you don't remember history, you're bound to repeat it , as someone once said. And they're very, very conscious of the problems Labour's faced in the past and they don't want them to happen again. WILENIUS: Here in Mitcham and Morden party activists are considering the latest revolution in party organisation. UNNAMED WOMAN: And I am here to talk about the 21st Century party consultation, a very exciting project that's taking place in the Labour Party at the moment, which is trying to encourage all of us as members to think and examine the structures that make up the Labour Party. WILENIUS: The aim is to water down the powers of constituency parties, and follows six years of radical party change under Tony Blair. It's seen the leadership remove policy making from the party conference, dilute the union block vote, and weaken the power of the National Executive Committee. One of the key architects of the reforms was former Labour General Secretary Tom, now Lord Sawyer. But he now feels the party reforms are not having the desired effect LORD SAWYER: It isn't working, and instead of party members being antagonistic and difficult, they're apathetic and not interested, so, this is my point, that what you've got to do, you've got to give them something to care about and something to engage them in the party and the government project, and there is a gap between what the government is doing and what the party thinks. We've got to close that gap. UNNAMED WOMAN: And Tony Blair is so clear about his aspirations for this next century, for the twenty-first century. WILENIUS: But anxiety over this reform is growing . There are fears it will change the whole nature of the party, and could put off even more party workers. Lord Sawyer is worried that party activists may find it difficult to digest much more reform. LORD SAWYER: I think this should be the last change because it completes the changes and it allows local parties to open their doors and get more people involved, but I think it should be the last change. The real issue now isn't about any more changes to the structure. The main issue is getting people involved and linking up the party members with the government and stopping that alienation between the two . WILENIUS: And one of Tony Blair's most loyal union friends, engineering union leader, Sir Ken Jackson, goes further. He's worried enough about the impact of the latest proposals to feel they should be abandoned . KEN JACKSON: Well I don't think at this moment in time the new proposals should, should, they should go ahead with. I think what we've got to do is consolidate on what we've done, show people the changes and the opportunities that have opened up by changing the party, but the new proposals at this moment in time, I believe, are a step too far. WILENIUS: Labour leaders claim the reforms will modernise the party and put it in a good shape for the next 100 years. But some are worried this is an excuse to tighten control over the party even further and to end free and open debate. They fear this will further alienate members and many will become less active or even desert the party. One place Millbank always has its eye on is the offices of the Left Wing paper Tribune. Tony Blair wrote in the paper last week that Labour's core supporters will not get any preferential treatment from the government. Editor Mark Seddon says that this attitude, combined with anger over excessive central control, is undermining party activism. MARK SEDDON: There is a great danger that those who seek to control and those who seek to tell people what they can, who they can vote for and what they can think and all the rest of it will end up with a very morose and quiescent party, that is simply not prepared to do very much at all and that is a very big danger. People have got to be enthused and they have got to be, they have to feel that they have ownership. WILENIUS: Mark Seddon is also a member of Labour's National Executive. Last week he addressed activists in Brent East, Ken Livingstone's constituency. He warned them of the dangers posed by the reforms, which will lead to greater centralisation. SEDDON SPEECH: Frankly, this party, a 100 years old, has a democratic tradition which is the envy and should be the envy of every other political party. The Labour Party has such a proud record in so many different ways that we simply cannot allow a small group of people, who really have little time for it, to take it over. SEDDON: The Labour Party has moved away from the idea of a representative democracy whereby ideas and resolutions can flow from the bottom upwards, percolate up through this movement, hopefully influence the leadership, to a top down approach which is largely based on something they call managed consensus, which means for the most part avoiding votes and resolutions whether it be in the Parliamentary Labour Party or the constituency parties or whatever. WILENIUS: Labour's leaders should be watching this place very carefully. It's the Politics Department of Sheffield University. Paul Whiteley and Patrick Seyd have been tracking the Labour Party for ten years and they've uncovered startling new evidence that many party members feel neglected. They say the leadership must stop meddling in the party, as in elections in London and Wales, or it could damage them in the future. PAUL WHITELEY: The party leadership needs to lighten up and allow dissent, allow initiatives, stop interfering in the democratic processes. There's no question in my mind that what's been happening in London is a disaster from the point of view of demotivating the activist and if that's not done and those lessons are not learned, Labour will take..will rue the day in the long run, that these approaches have been taken. PATRICK SEYD: Party members are not fools, you know, I don't think they expect a leadership to agree with them all the time. But I think what party members want, they want to trust their leaders, they want to trust their leaders that their leaders take their opinions seriously, even if they disagree with them. WILENIUS: Their evidence shows those active in the party have dropped from a half to a third and that party members are leaving. SEYD: Between our last two surveys in 1997 and 1999, fifteen per cent of the membership have actually left. So not only are you having a declining activist base, but actually, even though the members, the membership did increase up until the election, since then for the Labour Party it's declining. Something like sixty five thousand individuals have left the Labour Party over a two year period. Now that is worrying for the Labour Party, very worrying indeed. WILENIUS: Those high up in the Labour Party may finally be waking up to this worrying message, as it's now coming from loyalists who helped deliver the reforms. Sir Ken Jackson heads the influential engineering union. He chats openly at a union reception last week to former Defence Minister Peter Kilfoyle, who warned that the party must pay more attention to its activists and heartlands. Both agree that the government needs to do more to keep the party and government together, and they hope Millbank is listening. SIR KEN JACKSON: Ministers have got to get closer to the grass roots. They've got to go out and they've got to communicate. They've got to listen. And they've got to be seen to be listening and that I think is what's lacking at the moment. That the activists are people out there on the sharp end don't believe that they're being listened to. WILENIUS: But there are senior figures who also feel Tony Blair's interference in selections and elections is damaging him. LORD SAWYER: Well, I think the big jobs in the Labour Party, like who should be the Mayor of London or the Mayor of Liverpool or who should be the Labour Party leader in Wales or whatever, I think the Labour Party Leader, i.e. Tony Blair should express a view. But there is a perception and it's fairly widely held as well that he went beyond that, and he was involved in the mechanisms for selecting those people and that's the kind of thing that damages the party leader and he should stand away from that. WILENIUS: The first signs have appeared of fractures in the relationship between the Labour Government and the Labour Party. There are real dangers for Tony Blair if he can't motivate all of his party activists to work flat out in future election battles. Some warn that without their commitment, the electoral turnout will fall and the party could lose seats in the forthcoming local and general elections. JACKSON: It's important, especially in the local elections where the enthusiasm of the population out there isn't always great, that you actually have to get out on the doorstep. You've got to impress on people the importance of getting out voting, supporting local councillors et cetera. And if we don't do that, if we don't get our message across, yes we'll suffer. WHITELEY: If the activists fail to campaign and elements of the core labour vote decide to abstain, to stay home instead of voting, then Labour could lose an awful lot of seats as a result of that and could be surprised by this. DIGNAN: So centralised control may have solved one problem but created another. Activists are no longer in open rebellion but some are just walking away. This is now slowly dawning on some in Labour's control centre. And tonight Blair will praise his old activists as "heroes". But it may not be enough to keep the whole party faithful. HUMPHRYS: Paul Wilenius reporting there. JOHN HUMPHRYS: John Prescott, you've always been passionate about open debate and democracy in the party. I remember a great speech you made for OMOV - one member, one vote, it swung it at the Labour Party conference in Brighton in '93/94. Do you understand the concerns of people like Tom Sawyer and Ken Jackson, who are great loyalists themselves obviously, been in the party a very long time. Do you share a bit of their worry? JOHN PRESCOTT: Yes, I do. I think I warned Tom Sawyer about some of these things, if you don't keep a close contact. I coined the phrase that the politics of organisation is equally as important as the politics of ideas and it's important those two things are brought together, especially when you are in government, because it's more difficult then than when we are in Opposition, because we can all say all sorts of things. And when I was listening to the programme there and I had to think to myself, look at the bitter rows that went on in previous Labour Governments, nothing like today but we still must make sure that if you don't keep contact with your activists and your Labour Party members, you will reap the kind of problems the Tories had, that they begin to walk away from you, and then government doesn't have any support in the country and you begin to lose government as well. So I think we are all conscious and aware of that, but just a couple of qualifications. I notice you picked out Sheffield and I notice you picked out Liverpool, now whatever has happened about activists in Liverpool, they have been pretty well pretty well prevalent there for an awful long time, well before Tony Blair came and the vote of Labour's vote went down and down and down. So, it's something continued and not associated directly with Tony Blair. Sheffield, now gone to Liberal, it should never have happened, I went there a number of times during the elections and there to that extent, again the problems of organisation go back further than actually this period of government and Tony Blair. But it is right, we need to make sure we get closer contact and I would say that we have in the partnership in power we have more people involved now in developing ideas in the party and the party 21st Century that was mentioned there is how we develop the reorganisation of the party structure with the agreement of the activists but the final point is, as was noticed there, we have doubled our membership, but a different kind of membership has come as well, who are demanding different things, who reflect a kind of different demand on the party structure and we need to bring them together. HUMPHRYS: You've lost a lot of members in the past couple of years, I want to come to that in a minute if I can... PRESCOTT: Twelve thousand a year - something like a thousand a month that go on natural wastage. Every party faces that, but we've had some decline.. HUMPHRYS: Fifteen per cent over two years, that's a lot.. PRESCOTT: No, no, it's twelve thousand a year but what we have to do is make that up in order to just keep it level. But I am not arguing that we don't need to be doing more. I was involved in campaigning that led to the doubling of our party membership.. HUMPHRYS: What's your membership today.. PRESCOTT: About three hundred and ninety odd thousand. The peak was something like four hundred and five. Now that's still the largest political party membership... HUMPHRYS: It's on a downward curve that's the point. PRESCOTT: I want it always to be up but don't forget under Tony Blair and myself the membership doubled in two years, that was quite considerable. HUMPHRYS: Wasn't that the '97 figure that you've just given me. PRESCOTT: Which one, the membership? ..No it's the latest figures that we have on membership and as you know under our rules.. HUMPHRYS: You don't update it.. PRESCOTT: No, we do. You allow a certain period of time before they come up, we remind them, paying membership and that's another thing that changed. Years ago they used to go collecting the membership, now you have to remind them about the payment, the standing orders, it's a different structure altogether. HUMPHRYS: Okay. Tom Sawyer's worry, Lord Sawyer's worry is - he said it's not working - he used a very blunt phrase there. He said it's not working because people feel they don't have a say, that's their concern. PRESCOTT: Well let's just take that one John. I mean, and Tom Sawyer was the General Secretary when he brought some of this. HUMPHRYS: Indeed, he was responsible for New Labour in all sorts of ways. PRESCOTT: Absolutely. He went through the process of listening. This Saturday I was in Hull, also on Friday night I was in Whitely Bay. There, there were policy reform groups where we discussed the policy in local groups and recruit membership, that then goes to the regional policies, it goes to our national policy forum. There are more members involved in developing our policy now, than was ever the history through the resolutions. HUMPHRYS: He's still worried about it. PRESCOTT: Fine, we've got to develop on it and build on it, but you know when I hear Mark Seddon talking about the wonderful system we had before, where you used to meet at the conference and you sent resolutions and they consolidate, what was the committee called,'The Compositing Committee' used to produce resolutions for us that meant everything to everyone, they could all vote for it and then we had difficulties when governments came to implementing it. HUMPHRYS: But it is odd isn't it that if things are working the way you describe then, that the membership seems not to be aware of it. I mean we heard some activists there, you know 'they frequently just ignore us' was one of the comments. And it is important isn't it?. PRESCOTT: No, it certainly is. But it's not only not knowing what's going on in the party, most of them don't know what's gone on in government, largely because we are not getting our message out to many of our own people. Now that raises the question what is our constituencies for. Before they used to be forums to argue the ideas and pass the resolutions and prepare for council and national elections. We do think campaigning now, particularly in government is a critical part. So what we have embarked upon with the constituencies, through this 21st Century is to say how can we deliver better, can we raise more money, more money now comes from individual membership in the Labour Party, it's not simply a trade union financial handout and they are bringing changes. We do canvassing by telephone now instead of just knocking on the door. People are changing in the way that they approach politics and we have to adjust a party structure which was devised for us by Keir Hardie and I think in a hundred years we can sit down and say is it still the best. HUMPHRYS: But Seyd says, Professor Seyd says it's not just a question of the global membership, it's a question of how active they are and it used to be that half the members were active, now it's only a third of the members are active. PRESCOTT: I think that's a very important point again and I've read most of their reports and they're very valuable contributions to understanding the activists and membership in our party. But at the end of the day, some activists are active in the GMC and it finishes there, some work seven days a week and I know when we brought the new membership in there was a lot of people saying, they don't do seven days a week, they are not committed like us Labour people, well it's changed a bit. Some people will give a day at the election, some people will give money, some will attend the social functions, some will come to the GMCs. You know the time when you really get a full GMC in the Labour when you know there's a damn big row, in the way a lot of people like that among the activists and sometimes it's very necessary. But let's marry those two different parts of our party that are coming together. The new membership that is coming along with the old activists who got used to a way. We need both of them and that's what we're trying to do. HUMPHRYS: The difficulty is that if they think there is this kind of control freakery that is the current mantra everybody talks about. You see, interestingly, Tom Sawyer talked about it there as well didn't he: 'there is a widely held perception' he said 'that Blair went beyond what he should have done, he got involved in the mechanism for selecting party leaders, leaders in Wales and in London. That's the sort of thing that damages the party leader.' It also sends completely the wrong signal to the activist, doesn't it. PRESCOTT: It is a difficulty and I think I agree with Tom, there is certainly that perception there and a great deal of publicity about it, though I can't help but think about the Ken Livingstone affair at the moment. There's Tony intervened and said, well, I think as leader of the party I must say I don't think Ken is the best candidate because he won't do what he says. Now I am bound to say the events at the moment perhaps suggest he might be right, I don't know, but he claimed.... HUMPHRYS: ....perhaps this wouldn't have happened if he hadn't got involved in the way he did.... PRESCOTT: ...well, perhaps it might not, but he is the leader and he said I have a responsibility at least to argue by case and that he chose to do.... HUMPHRYS: .....but don't get involved in the mechanics was what Tom Sawyer said. PRESCOTT: ....I think that's what Tom was saying there, yes, and I think that does create great problems, though as a leader, he is the leader of the party as well as he is the Prime Minister. And I think a lot of people have learnt a lot of lessons hopefully and will begin to make the kind of changes that are necessary. HUMPHRYS: What's the biggest lesson then? PRESCOTT: That you can't win, that you can't hold this party together without keeping your activists and full membership participation. Most of the things under the Blair administration, particularly as the leader of the party, has brought radical changes and I think he can look back and say I have made those changes, now let's get on with delivering. HUMPHRYS: Because if you don't do that then you do have difficulty getting the vote out and it damages at the election, doesn't it? PRESCOTT: Absolutely, I think if your party loses heart, I have always been very strong about that, at the end of the day the party must have heart to want to go out and fight, but I would say this, isn't it curious, this is the first Labour government that has produced over eighty per cent of its manifesto in less than three years. Now normally that used to be the cry, what about the manifesto, you are not carrying it out. Dennis Healey's reminded the difficult economic circumstances he faced. We have economic stability, we have produced eighty per cent of our manifesto. Any party and any government should be able to say to its party, go out and tell them, there's more people in work, more going into hospitals and health, Keir Hardie had that manifesto. Our card said exactly the same. I bring out my card. The same principles, the same commitments, we are delivering. So we can ask our activists to support that. HUMPHRYS: You weren't around when Keir Hardie was, I'll give you that. But you've been around, you've been around when Tony Benn obviously - he sat on my knee, or something, or he sat on his knee probably. But you've been around a very long time. A lot of people see you as the conscience of the old Labour Party, whether you use capital O or capital L or whatever you like. And there have been huge numbers of changes in the past few years. Is it your view that now perhaps is the time to put the revolution on hold. A period of consolidation if you like. PRESCOTT: I think it is a period of consolidation but change always keeps going. Tony Blair constantly tell us, don't let's be complacent, you can't just do one and finish and hope it lasts there, but when Tom says we've gone through such radical changes over this period of time. Let us consolidate but don't let us ignore the fact that you have to change and keep up with the circumstances and it's a balance and at the end of the day, our party members decide it at conference. That is what democracy is about. We have to make these proposals. And I think all of us are looking forward now to the coming election when we've had a good record, a good delivery and we can get on with the job. The other thing, to be honest I think that's undermined us a bit, this is somewhat controversial I suppose, is that when we had this whole PR in elections, where the party have seen the strength of the parties go down, whether it's in Scotland or Wales and its representation or the European elections and I think to that extent, they think, well, we've seen PR, perhaps we have had enough of it and let's learn the lessons of it. HUMPHRYS: And how much longer are you going to be around? PRESCOTT: A few more years yet! - it's better than working. HUMPHRYS: You don't think...you've had quite a rough time over the last couple of years..a bit of briefing against you and all that. You don't sometimes think you know, people think, well the old Prescott, he's part of the past and not the future. PRESCOTT: Well, they can make that decision, that's up to them. I have always believed in change. I have always played a major part in it. But I am very strong about traditional values in the modern setting. I think that's what the Labour Party's about. Keir Hardie could still be proud to be in this member today producing for the less fortunate in the society, a fair society, one on social justice. I've always believed in that and that's what we're doing. HUMPHRYS: John Prescott, thank you very much indeed. And that's it for this week. Let's leave you with our usual reminder of the On The Record website, and from there, if you log on to it you get onto BBC's News Online Politics site and much more about Labour's one hundred years. And until the same time next week, good afternoon. ...oooOooo... 21 FoLdEd
NB. This transcript was typed from a transcription unit recording and not copied from an original script. Because of the possibility of mis-hearing and the difficulty, in some cases, of identifying individual speakers, the BBC cannot vouch for its accuracy.