Labour takes aim at rail and energy suppliers’ rising prices

Ed Miliband targets initiative at squeezed households with plan to reset terms of privatisation for power and train companies In a populist eve-of-conference appeal, Ed Miliband plans to turn Labour’s fire on privatised industries – proposing a national system of purchasing energy and a ban on train companies that rig prices. The Labour leader hopes to reset the terms of privatisation for industries contributing most to a squeeze of living standards. Miliband pledges that train companies currently rigging fares will be disqualified from renewing their franchise by a Labour government. He also vows to act against price-fixing by the six energy companies by requiring them to pool all energy centrally, a move that he claims would cut energy prices for 80% of users. Any company would then be able to buy and supply energy from the pool at a clear and transparent price. The initiatives are being billed by Miliband’s aides as a sign of his desire to speak out about “a quiet crisis” gripping households because of higher bills, squeezed wages and irresponsible profiteering. In a Guardian interview, the shadow foreign secretary, Douglas Alexander, says: “The focus of conversation around many kitchen tables is rising train fares and energy bills. People believe the government simply do not understand the pressures.” The coalition government has lifted the cap on rail fares, meaning tickets are to rise by as much as 8%, with some individual routes seeing increases as high as 13% next year. Under plans being drawn up by Labour, train-operating companies would be barred from competing for the renewal of their licence if they failed to meet a set of conduct standards over the previous five years, rather than just “a narrow bottom line test”. A Labour source said: “We are allowing these companies to get away with practices which would be barred in any other industry and then we are allowing them to bid for contracts as if the past never happened. There are legal complexities here but there has got to be a basic ‘something for something’ deal with the train companies and there has got to be more pressure brought to bear on price hikes.” Significantly, Labour said: “The assessment of what the train companies are doing will be retrospective so that price rises and irresponsible conduct now or in the past could be used to disqualify companies from the bidding process in the next round of renewal franchises.” Labour is targeting the way in which train companies walk away from delivering services if they are no longer profitable or handing back franchises to avoid making payments back to the taxpayer. The transport secretary Philip Hammond is planning to offer rail franchises as for as long as 15 years. Many train companies would demand compensation or accuse Labour of confiscation if franchises were taken prematurely. Miliband’s move comes as a Guardian-ICM poll showed his personal appeal remains low but voters are also increasingly opposed to government economic policy . The poll finds only 30% of voters – and just 49% of Labour supporters – agree with the statement “the party has the right leader in Ed Miliband”. His net approval ratiing is -14, up from -16 but is now worse than both David Cameron and Nick Clegg. Ed Balls, included for the first time, is on -18. But support for government’s economic policy is perilously low. Only 32% agree with the statement “the government’s tax increases and public spending cuts are essential to protect Britain’s economy”. Almost twice as many, 62%, agree “the cuts are too deep and too fast, they will harm Britain’s economy more than they help it”. Alexander accepts the public bought the Conservative, rather than Labour, explanation for the crash in 2008. “Frankly, after the crisis in 2008, the Conservatives were more successful than Labour in framing a public language that made more sense of the economic crisis and that helps explain the election defeat”. But he said: “There are moments in politics when the common sense of politics is up for grabs. The deteriorating economic situation means now is such a moment.” The terms of trade for British politics are shifting and there is a growing anxiety in the country that the government has got it wrong at a quite fundamentlal level. He says “The task for Labour now is to explain what we got right and wrong before the crash, explain how we would get the economy growing and so deal with the deficit, and explain how we will pursue social justice with less money around”. Writing in the Guardian today, shadow chancellor Ed Balls admits the party has work to do to win credibility on the economy, and that will require being honest that Labour would have faced tough choices on tax and spending if re-elected. But he rejects advice that Labour could neutralise the economy “by going along with the Tory false claim that Labour profligacy caused the crisis”. He writes: “Credibility is certainly not won simply by agreeing with everything the government does. Of course a credible economic policy needs a plan to get the deficit down. But an economic policy can only be credible if it works. And – aAs 1992 showed – the only thing less credible than a government getting it catastrophically wrong on the economy is an Opposition hanging onto their coat-tails.”The Labour conference formally opens on Sunday, but at a meeting of the Labour national executive Miliband will finalise his plans to redraw the Labour constitution, including introducing a new right for registered supporters to have a vote in future leadership elections. The conference may be be overshadowed by the economic crisis, but is still seen by Miliband’s aides as a vital chance to project a clearer vision of where he stands. Labour conference 2011 Labour Labour conference Ed Miliband Household bills Energy bills Consumer affairs Rail transport Energy industry Patrick Wintour guardian.co.uk

Posted by on September 23, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.