The Practical Left
The role of LFIG
The big fear is that socialists see industry and the banks as the enemies of the people. The traditional view is that the two sides are in conflict and these conflicts cannot be resolved, because the interests of capitalists are diametrically opposed to the interests of their employees.
While this remains the philosophical bedrock of socialism, it does not follow that the only way to overcome the conflict is for the workers to take over the factories. This may have been necessary in the past but the world of work in the UK has changed.
Now, shares of firms are owned by a wide spectrum of the population from pension funds to millions of small shareholders. Today legislation effectively constrains what firms can and cannot do. There are health and safety regulations, minimum wages, pollution controls and consumer protection. Taking these all together, the public interest in how companies behave comes under the spotlight the moment a pressure group finds fault.
Reputation matters in the age of the brand product or service. Firms cannot afford to ignore the impact on their reputation. Adverse publicity hurts them in their pockets. It causes share prices to fall. In the age of the internet, firms have to enter into dialogue not only with their customers but also their employees. It is one reason so many people have forgotten the importance of trade unionism.
Nevertheless there is still an important role for government to play. It is the key arbiter of the value judgements the electorate place on the way business is conducted. The fight may therefore not always be between firms and their employees in the traditional sense of trade unions versus employers but it is still a fight between the political parties.
One party believes in markets and relies on them to solve all problems. Whenever they can, the Conservatives will always choose policies, which avoid intervening in the affairs of companies. It is inbred in Tory values that regulation of business is anathema to them.
It is also obvious to us in the Labour Party that it is the role of government to manage markets to protect the individual worker from the excesses of exploitation. It is also incumbent upon government to protect the individual customer from the excesses of manipulative enterprises or deceitful firms.
We believe intervention is the best way to ensure that good firms are protected from the unfair competition of those who would cut corners and undercut prices. Managing markets and intervention are not the same as control. We have no desire to control what goes on or how suppliers and customers respond. On the contrary, we want to encourage people to be entrepreneurial, innovative and imaginative.
This means firms need to be profitable, efficient and innovative. They need to be world leaders in their field by putting research and development into the new products and services that people abroad want to buy. They need to be competitive and produce quality.
The Labour Finance and Industry Group recognise the importance of the City, manufacturing and services and the contribution they make to the UK economy. We want firms to be strong and successful. Only if they are successful will they be able to pay high wages and give decent terms and conditions of employment.
Our view is that the economy relies on finance and industry to create the wealth, to employ people and to pay corporation taxes that enable the government to redistribute wealth to those who need it most. And there are many people who work in finance and industry, who feel this way. They may work in banks and international conglomerates but that does not mean they give up on their views of a fair society.
We see finance and industry as the ultimate source of funding for all government activity. It is this that enables us to look after the health and welfare of our society, making it a place of opportunity and fairness, where housing and education meet acceptable standards for all. It is through the City and industry that we will be able to clean up our act, to reduce our pollution and recycle our waste. It is through finance and industry that we will go on to greater things to improve the quality of life in making new scientific discoveries, medical improvements and new creative ideas to offer the rest of the world.
Our approach is to find left of centre solutions to managing the economy, helping firms by engaging with banks, manufacturers and service companies by co-operating with them. We want our banks and firms to thrive and prosper.
This is our vision of the Britain we want to live in. It requires a vibrant City and profitable industries. Without these, the vision would be impossible to achieve. We want to attract the leading lights in finance and industry to join us to help make government policy for a strong and lasting country for all to benefit according to their needs from the efforts of those according to their ability.