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Sobering Thoughts...

No blog post or "whine" suggestion this week. Instead, I thought I'd share an article I wrote for the F-Word blog a few days ago.

Read and Enjoy!

https://www.thefword.org.uk/2016/10/its-data-not-ambition-that-holds-back-female-business-owners/

Murdoch, the PM and Red Bordeaux

Tasting notes: Bordeaux is one of the better known blended wine varieties, combining various types of grape to give a variety of flavors depending on region, age and grape combination. The older a Bordeaux gets, the more powerful it becomes, commanding higher prices as a result. And so it is with Rupert Murdoch’s relationship with British politics.

Over the years, the relationship a Prime Minister has with the press has become a topic of public discussion. From Margaret Thatcher’s secret deal with Rupert Murdoch to Theresa May’s most recent meeting with the media tycoon, there has never been a shortage of intrigue and speculation over who was controlling whom.

Last month, May, who has a reputation for keeping the media at arm’s length, met Rupert Murdoch in New York, managing to squeeze him into her 36hr trip to the Big Apple. Owner of both The Times and The Sun newspapers, along with Sky, Murdoch now owns a third of the British media, and May’s private meeting with him has not gone unnoticed.

Murdoch is also a massive ‘outie’. He was not shy about his preference for the UK to leave the EU and when asked why he replied:

“When I go to Downing Street, they do what I say; when I go to Brussels, they take no notice.”

Now this is a statement worth exploring.

Back in the early 80’s, the relationship between British politics and the media changed forever.

We should avoid a lazy comparison being drawn between the UK’s only female PMs, but in 1981 a long covered up meeting took place between Margaret Thatcher and Rupert Murdoch, the topic of which was Murdoch’s desire to acquire The Times newspaper.

His purchase would effectively give Murdoch control over 40% of the British press and it was all made possible by Thatcher, who helped him avoid a referral to the Monopolies and Mergers commission which would have probably prevented this from occurring.

The reason behind this move from Thatcher was to gain media support. At the time of the secret meeting, she was lagging behind in the polls and needed all the support she could get. And Murdoch? He wanted an empire – win/win.

In hindsight, this was a horrendous mistake on Thatcher’s part, demonstrating an unforgivable short-term selfishness which was to give an unelected individual far too much power over public opinion. From now on, every PM would need to get Murdoch on-side to stand any chance of achieving favourable coverage.

So how far are politicians in the pocket of Murdoch and his press empire?

Well, May hasn’t done a great job of separating herself from comparisons with her reckless predecessor, given that her meeting with Murdoch seemed equally ‘secret’, taking place across the pond, with Downing Street defensively stating that a “brief meeting” had taken place at the offices of Murdoch’s Wall Street Journal publication.

But this has been going on for years. It is now widely speculated that Tony Blair’s electoral success was largely due to his close relationship with the media mogul, who supported him in all three of his electoral campaigns.

And if you need more evidence of Blair and Murdoch’s special relationship, Blair is a godfather to one of his children!

What about Cameron? Well, guess which billionaire backed Cameron over Brown in his first bid for No.10… that’s right, our good friend Rupert.

Cameron himself admitted, after the phone hacking scandal, that he felt he had become too close to the media, but was quick to stress that this was across a wide range of titles, not just the third owned by Murdoch.

Relations between No.10 and the Murdoch empire have been notably strained since the phone-hacking drama, but it seems as though this bridge is being rebuilt.

It is now clear that May does want Murdoch on-side, and why wouldn’t she? He supported her bid against Gove in the post-Brexit leadership battle and she will need all the support she can get over the next few months, as the EU exit negotiations heat up.

We should end by stating that the use of the press to promote a political agenda is nothing new. There are whole schools of historical thought dedicated to it and it’s been going on for as long as newspapers have existed.

What’s worrying is not really the dynamic between press and politics but the dynamic between the UK’s various elected leader’s and an unelected individual who seems, not only, to have a skill for putting politicians in his pocket but, worse still, gets them to jump in willingly

Labour opposition leader, Jeremy Corbyn, has come out and said that, if Labour were to win the next election, he would put plans in place to break up the big media groups. Interestingly, this was only after he bemoaned the ‘horrendous’ attitude the media was showing towards his party – I’m not so sure he’d be so keen to end the monopoly if they were rallying in his favour.

The fact that the press does hold sway over public opinion is one that cannot be avoided, as much as we hope that we are immune to that kind of ‘mind-control’. It benefits politicians to have media supporters and it’s even more important to keep them on-side during their term if they are to stand any chance of re-election or ongoing public support.

Until the locks on the back-door at No.10 are changed, Murdoch will keep sneaking in.

Why Bordeaux?

Bordeaux is one of the most famous blended wines in the world. It has an illustrious heritage and has secured a reputation for being one of the fine wines of the higher class.

Rupert Murdoch is arguably one of the most powerful men in the world. His influence in both the UK and the US is unrivalled and he most recently became the CEO of Fox News, adding to his already expansive empire. He is a regular on the Forbes rich lists and has had “more impact on the wider world than any other living Australian”, according to former Aussie Prime Minister, Tony Abbott.

Bordeaux is a full-bodied and powerful wine which, when tasted, has an initial fruity flavor, giving way to drying, savory tannins as an after taste. To many, this can be quite overwhelming and unpleasant and the older the wine, the stronger the tannins become.

It’s the same with Murdoch. I’m sure that, at first, Thatcher saw him as merely a tool to help her gain additional support from a disenchanted electorate, but, as he has aged, he has become more powerful and has had a lasting impact on British (and US) politics which, to many, now seems quite unpleasant.

Finally, as a blended wine, the balance of grape varieties is key to the end result. Likewise, the relationship Murdoch has forged with various Prime Minister’s will always be individual and a balance has had to be struck each time. It will be interesting to see the dynamic that emerges with May and the part he will play in successive governments.

What is indisputable is that this relationship, like Bordeaux, it will always have a place in the (wine) Cabinet, whether we can afford it or not.

The Northern Powerhouse, Osborne and Cabernet Sauvignon

Tasting Notes: Cabernet Sauvignon is a bold and rich wine, bursting with tannins. When young, these elements are at their peak, but as it ages the flavours mellow. Similarly, the Northern Powerhouse was a strong and bold idea in its infancy, but as time has gone on, has the enthusiasm begun to mellow?

Last week, it was announced that the former Chancellor of the Exchequer, George Osborne, has decided to chair the newly formed ‘Northern Powerhouse Partnership’, allowing him to focus his political energies on the project that gave him so much air-time as Chancellor.

Osborne coined the term ‘Northern Powerhouse’ two years ago in the Power Hall at Manchester’s Museum of Science and Industry (MOSI), giving rise to an unprecedented modern enthusiasm among northerners for local economic growth and prosperity.

He ceremoniously proclaimed that:

“The Northern Powerhouse can’t be built over-night. It’s a long-term plan for a country serious about its long-term economic future. It means jobs and prosperity and security for people here over future decades.

And I promise you this – I will work tirelessly with anyone across political divides in any of these great cities to make the Northern Powerhouse a reality.”

That promise to work tirelessly has been kept it seems - a rarity among the political elite I’m sure many will agree.

The initial proposal included plans for improved transport links, the devolution of power to elected mayors, and major investment in science and innovation projects across Manchester, Liverpool, Sheffield and Newcastle.

During David Cameron’s time at No.10, the initiative seemed to gather momentum, capturing the imagination of business leaders while also securing lucrative Chinese backing. A government “pitchbook”, which sought to outline “attractive international investment opportunities in the North of England”, was published two weeks before President Xi Jinping’s visit, unashamedly addressed to the Chinese market.

“It gives me great pleasure to present this pitch book – the first of its kind – to the Chinese investment community today.”

By comparison, when Theresa May replaced Cameron in July, not only did she show notable reluctance when it came to endorsing the Northern Powerhouse - shifting focus away from the north, towards a more nationwide industrial strategy - she also notoriously snubbed the Chinese during the recent Hinkley debacle, making no secret of the fact that she mistrusted the country’s involvement with UK infrastructure projects.

Could this be the real reason behind her lack of enthusiasm?

Speaking on BBC Radio 4 for the first time since he left the Cabinet, Osborne commented on May’s unenthusiastic approach to his beloved pet project, admitting that he has had to persuade the new government to push on with the Northern Powerhouse vision, and accusing May of having a “wobble” over the commitment it would require.

Since announcing his new chairmanship, he has admitted that he did not consult May about the decision, only seeking counsel from his Rochdale-born political ally and Local Government and Communities Secretary, Sajid Javid. Whether this was because he could not get ‘face-time’ with the new PM, or whether it was an intentional decision, we may never know, but it now seems that May has granted her blessing.

In an article for the Manchester Evening News, earlier this week, May left us in no doubt that she is in full support of the Northern Powerhouse initiative, waxing lyrical about how “Manchester has always been a city where the future has been invented” and confirming that she will “work with leaders here in Greater Manchester to build on the Northern Powerhouse, celebrating and further spurring the enormous contribution and potential of cities like Manchester, to deliver economic prosperity and more opportunities for everyone.”

Speaking at the think-tank’s launch this week, Osborne also confirmed that the PM was now on-board with the ideas he has for the partnership; but he was also quick to note its independence from any London-centric governmental policy.

“Of course the partnership with Government is important, but the Northern Powerhouse has to be owned by the north, run by the north, it’s got to have enthusiasm in the north.”

Devolution and the planned election of mayors in Manchester, Liverpool and Sheffield, along with seven other city-regions, shows that the desire for independence is there, despite the North-East declining the offer with a ‘thanks, but no thanks’ letter to Whitehall earlier this month. There’s no pleasing some people!

It is this kind of support, especially in the North West, which has resulted in ‘Northern Powerhouse’ becoming a widely recognised term with real meaning and promise, despite May’s administration dialling down the hype built-up by Osborne.

Osborne built a brand out of the Northern Powerhouse. It was his flagship policy, arguably defining his legacy as Chancellor. For many, it remains a turning point: challenging the North-South divide head-on, subverting a London-centric mentality, and attempting to rebalance the economy.

It is a shame that one of Osborne’s most vocal supporters, Sir Howard Bernstein, is stepping down from his 45-year tenure as Chief Executive of Manchester Council, at a time when he could really use some additional support.

In recognition of his snappy-scarf clad ally, Osborne led tributes to Sir Howard, defining him as “the star of British local government”, admitting that there is no councillor that “comes close to him”.

Nevertheless, Osborne’s enthusiasm for his new role alongside other (less eccentric) local politicians and business leaders, will seek to use the Partnership as a way to share ideas and lobby the government to push forward with devolution plans.

Writing in the Sun, Osborne stated that he would “keep asking questions about what more we can do to help the north succeed”, encouraging regional powers to “take a greater role in deciding its own future.”

So it looks as if the Northern Powerhouse won’t be powering down any time soon.

Why Cabernet Sauvignon?

According to Wikipedia (the font of all knowledge):

“For many years, the origin of Cabernet Sauvignon was not clearly understood and many myths and conjectures surrounded it.”

Likewise, this seems to have been the case with the Northern Powerhouse. While it will inevitably always be linked with Osborne’s impassioned speeches in various Mancunian locations, it was a concept that many northern councils were advocating before Osborne took it to press.

During his time in Cabinet, Osborne was criticised for using the initiative as a means of political point scoring, but doesn’t this latest move show that he was genuinely passionate about the project? And won’t his continued involvement nsure the initiative keeps its momentum?

When it was first introduced, the ‘Northern Powerhouse’ was a concept that few fully understood - but now it is a well coined phrase, with positive connotations, that has re-ignited enterprise and regional pride in many northern cities. While this may not have extended to the North-East quite yet, it is promising to see that the project wasn’t boxed up with the rest of Osborne’s office stationary when he was handed his P45 by May.

A second parallel we can draw relates to the aging of Cabernet Sauvignon. In its infancy, the wine is strong and bold; but, as it ages, the taste mellows and it becomes more palatable, with a wider variety of food pairings. Hopefully, this will be the case with the Northern Powerhouse. With Osborne still on board, and a government-backed body now established, we must focus on the longer term, encouraging it to work in harmony with a wider variety of initiatives and interest groups throughout the north.

Cabernet Sauvignon production it is not restricted to one region. In fact, it is a wine which is produced in numerous old and new world countries, including France, Italy, California and Australia.

Similarly, the success of the Northern Powerhouse will be fully realised when all northern regions embrace the enthusiasm for change. Just like the growing of Cabernet Sauvignon, the method just needs to be adapted to suit the various climates.