Magazine Issue 2 - Winter 1996
Talking Shop: An introduction to the covert world of corporate lobbying

"If democracy is meant to signify a representative government for all the people, in which everyone has an equal chance of being heard, of being able to influence their local politician, then democracy is dead, killed by the monoliths of the modern age - transnational corporations" (Andrew Rowell).

Lobbying is a funny business. Not so funny if you're a corporate watcher, though - they keep too sodding quiet about all their scheming and conniving. This is because lobbying is seen by the public as slightly dodgy, and also because the Rt Hon Sir Anthony Nepotism-Sleaze MP is likely to be less obliging next time if he's just been splashed across the gutter press.

The business lobby is one of the great gaps in the standard economics textbook. The hand of the market has its problems (in particular in having a tendency to develop nasty monopolies) but we've always got Government regulation to protect us.....Unless of course Government is being enticed by that same hand.

Lobbying embodies what's so wrong with free-market capitalism: it's a system which feeds on positive feedback. The more powerful you get, the better able you become to make yourself even more powerful, usually at everyone else's expense. Those without serious financial backing can't afford to spend the time monitoring and building contacts with Government; besides, the economic well-being of the country is far too important to be left to those on less than a 6-figure salary.

Although the Government (and its likely successor) are business-friendly to say the least, they are under increasing pressure to introduce environmental regulation, and it is the role of lobby groups to fight this.
Since it is generally easier to stop or deflect a change in legislation than to initiate one, the majority of lobbying is reactive rather than proactive.

An experienced lobbyist will begin by simply offering information to 'help' the decision-makers (indeed they'll often ask for that help); only if this fails will persuasion, and eventually pressure, be tried. The intensity of a lobbying campaign tends to lie more in the number of politicians/ officials lobbied than in how much each one receives.

By far the most important part of Government relations is monitoring the political scene, in order to know what is happening long before it happens. This means scanning papers from both Houses, departments, think-tanks and party groups, and also chatting to civil servants. It is essential to get in early - this is part of the reason we hear so little about lobbying. The lobbyist will also keep files on all MPs, so as to know who might support a campaign, who would oppose it (and hence shouldn't be informed about it), and also what arguments might be persuasive, in terms of their political beliefs, constituency concerns, party commitments, career aims etc.

Proactive campaigns generally work through profile-raising, by persuading MPs with constituency or personal interests or those in marginal seats to enter Private Members' Bills, Early Day Motions, Parliamentary Questions, letters to Ministers etc.

HOW TO LOBBY AGAINST A BILL
* Parliament is essentially equipped with a rubber stamp and an almost empty, dried-out bottle of Tippex, and is unlikely to make any really substantial changes to a bill. The real power is down the road in Whitehall, and it is there that the really power-hungry go for lunch. Members of economically important industries don't have to try hard, since senior policy makers regularly consult with them - they wouldn't dream of making an important decision without chatting about it first with some fellow Etonians/Oxonians.

* It is important to brief the civil servants before the Minister, as it is from the former that the latter gets his information.

* All routes of influence into the Department will be used, including other Government Departments, and any MPs likely to get a friendly ear.

* If the Whitehall stage fails, all potentially supportive MPs will be briefed, so that they can form an opinion before the 1st Reading of the Bill. The Bill's Standing Committee will obviously be heavily targetted.

* Whereas the lobbyist will try to de-politicise the issue while it is in Whitehall, at this late stage he will do the opposite, and probably run a public relations campaign, encourage constituents to lobby their own MPs etc, in order to stir up a fuss, and encourage amendments.

* After the Commons, the same happens in the Lords.

Who Lobbies?
There are 5 types of corporate lobbyist:
Industrial associations, which represent the interests of a whole sector of industry;
Political consultants, who lobby for anyone who can afford their fee (Ian Greer, of cash-for-questions fame, was one of these);
Cross-industry groups, eg Confederation of British Industry, Institute of Directors etc., plus single-issue interest groups such as the British Roads Federation;
'In-house' lobbyists (employees of the company itself);
Politicians with an 'interest'.
We'll feature one in each issue.
PART 1 : Industrial Associations
These represent the interests of whole sectors of industry, not only in Government lobbying but also often in media, pr and marketing work.

An association is structured into a secretariat and a directorate, the latter consisting of senior executives of member companies. The secretariat will (depending on the industry) meet regularly with civil servants, and also do all the written and admin work. The directorate consists of a board of directors, committees, sub-committees etc to make decisions, and at meetings with Ministers or senior civil servants there will often be a representative both of the directorate and of the secretariat present.

There are more industrial associations in this country than you can shake a stick at. They vary widely in size of membership, size of staff and political power. They are listed in Associations and Professional Bodies in the UK (in local libraries). Here are a few of them:

GOVERNMENT AS REGULATOR
Standard argument: claims of environmental damage aren't scientifically proven. Regulation would discriminate unfairly against the industry concerned, or even against industry in general.

House Builders Federation (HBF)
82 New Cavendish Street, London W1M 8AD; tel 0171 580 5588; fax 0171 3231697.
Regional centres in Cambridge, Liverpool, Birmingham, Durham, Manchester, Horsham, Cardiff, Bristol, Leeds.

It has lobbied the DoE for relaxation of land use restrictions (including green belt and infrastructure regulations), and the Treasury to keep interest rates down and not to cut mortgage tax relief.

On Government regulations to provide housing suitable for the disabled: "Accessibility requirements could involve costly and unsightly ramping... These proposals are being resisted as strongly as possible, using every political as well as technical means at the Federations disposal."(Annual Report 1994).
"There needs to be a broadly based fight back against sustainable development policy....Lowering the standards of the whole population is an affront to the planet" (director Roger Humber in Building, 1/7/94).

The Spice of Life?
In recent meetings with the Department of Health, the International General Produce Association (IGPA) and the Seasoning and Spice Association (SSA) have been pressing for a reduction in the amount of testing of their products for salmonella and faecal coliforms. Salmonella is known to occur in coriander, cumin and curry powder; and in recent tests over 7% of samples were found to be contaminated with the salmonella organism.

A memorandum to members of the IGPA talks of their 'tremendous concerns' at the testing, with their precious cargoes being 'held up at ports on a regular basis, causing large demurrage costs'. Concerned consumers might consider contacting IGPA's Jim Kenneally at Gafta House, 6 Chapel Court, Chapel Place, Rivington Street, London EC2A 3DQ, tel 0171 814 9666, fax 0171 814 8383. It is ironic that spices, used for centuries to mask the taste of decaying meat, are now themselves possible causes of illness and disease. Is nothing safe to eat any more?

UK Agricultural Supply Trade Association (UKASTA)
3 Whitehall Court, London SW1A 2EQ. Tel. 0171 930 3611. Fax 0171 930 3952.
400 members, including the biggest and baddest (Cargill, Dalgety, Bibby etc.)
Turnover ~£1m. 15 f-t staff.
UKASTA's successes are impressive for all but the environmentally responsible:

Pesticides - the "continuing battle with the ridiculously arbitrary provisions of the Drinking Water Directive", and the Pesticides Safety Directorate on the 6 metre buffer zones being introduced, "seemingly on a somewhat flawed premise concerning the likelihood of damage to the aquatic environment". UKASTA argues that "members must be able to see the scientific logic behind proposals".

Fertilisers - "UKASTA helps ensure that nitrate and fertiliser use policies are developed with equal regard to both commercial and environmental imperatives.".... though some more equal than others.

Air Pollution - "the threatened cost and operational impacts of air pollution control legislation developed by the DoE have been removed for most members and reduced for those still covered by the legislation by UKASTA lobbying".

Seed Royalties - last year UKASTA lobbying led to the introduction of legislation requiring payment of a royalty on the use of farm-saved seed. This is to maintain a healthy dependency of small farmers on large corporations.

Packaging - UKASTA 'negotiation' has delayed implementation of new packaging requirements for dangerous goods. It is pushing for legal responsibility under the Packaging and Packaging Waste Directive to rest with packaging producers.

Set-aside - "UKASTA input to MAFF has ensured that the agri-environment provisions of the CAP have been developed to the maximum commercial benefit of UK agriculture." It has reduced the set-aside requirement to 10%, and has "cut bureaucracy" on growing industrial (non-food) crops on set-aside land.

British Aggregate Construction Material Industries (BACMI)
156 Buckingham Palace Road, London SW1W 9TR; tel 0171 730 8194. 60 members (incl. ARC, Blue Circle, Tarmac Quarry Products etc.)

BACMI would like to see roads, roads and more roads. "The consequences of going along with the green approach are just so horrendous for employment, the economy and our way of life that it should be treated very suspiciously indeed" (then director general RH Philipson in Building, 1/7/94).

It also claimed credit for delaying publication of the DoE's Guidelines for Aggregates Provision in England (Annual Review 1993). "There are many positive aspects to quarrying which actually enhance the natural environment" - David Snowdon, exec chairman of Whatley Quarry operators ARC Ltd. and then vice chair of BACMI. (BACMI Welsh annual lunch, 12/94).

UK Petroleum Industry Association (UKPIA)
9 Kingsway, London WC2B 6XH. tel 0171 240 0289
13 members (100% of refiners, 65% of retailers); 6 staff.
UKPIA believes that environmental considerations should be addressed with "the minimum restrictions on present lifestyles and minimum necessary cost to our economy" (Oil Review, 6/94).

Its work is more in response to European legislation - both in lobbying the UK to state the industry's case in Europe and in ensuring that if passed it gets written into UK law in a favourable way. It deals more with MEPs than MPs.

A major issue has been the auto-oil programme, working to meet EC emissions reduction targets (or make the targets meet the industries). It also deals with taxation and employment practice.

Society of Motor Manufacturers & Traders (SMMT)
Forbes House, Halkin Street, London SW1X 7DS; tel 0171 235 7000; fax 0171 235 7112.
1000 members (including all the biggest), subscription ~£3m. 110 f-t staff.

SMMT wants lower tax on motor vehicles - it defeated the "discriminatory" 10% supplementary tax on new cars; it has fought plans to close tax loopholes for company cars; and continues to fight fuel tax increases. It also campaigns on safety, materials, emissions - especially with the EC. In the '80s, it campaigned to keep lead in petrol; it has consistently denied that there is any real scientific evidence supporting the existence of undesirable pollutants in exhausts. (Friends of the Earth, We Accuse the SMMT,11/6/96).

It is an active member of the British Roads Federation (BRF), providing 20% of its income. "Industry must steel itself against green militants with their empty rhetoric about 'covering the country with concrete'" "Future generations will not appreciate being left a stagnant, uncompetitive nation with declining living standards and reduced opportunities for the personal mobility we value so much." (SMMT Motor Industry Review, 1993/4). SMMT also force-feeds schoolkids with its propaganda (though see p.6).

British Agrochemicals Association (BAA)
4 Lincoln Court, Lincoln Road, Peterborough PE1 2RP; tel 01733 349 225; fax 01733 62523.
45 members (incl. Bayer, Ciba, Du Pont, Monsanto, Rhone-Poulenc, Zeneca etc)

"BAA continues to support the Government's campaign against illegal poisoning of wildlife" - ie it makes it legal. It "played a major role in shaping [environmental legislation] by actively contributing to the Pesticide Minimisation [ho ho] conference with MAFF and the DoE."

"The pesticide industry is based upon science and, as such, is fundamentally opposed to the use of unscientific standards in its regulation." It has opposed the Drinking Water Directive, and promoted a campaign wittily entitled 'Think Water - Keep it Clean'. BAA has continued to press for reductions in the cost to industry of approvals and post-approval monitoring on registering with the Pesticides Safety Directorate.

On biotechnology, "encouraging acceptance by the public of genetically modified vegetables...is going to be difficult. We shall have to wait and see." BAA opposes packaging legislation, and has achieved exemption from transport safety controls.

It has also been working with schools. (Annual Review & Handbook, 1996).
Timber Growers' Association (TGA) 5 Dublin Street Lane South, Edinburgh EH1 3PX. Tel. 0131 538 7111. Fax 0131 538 7222.

80 corporate, 1800 individual members; 6 f-t, 8 p-t staff.
TGA presents itself as the association for anyone with an interest in woodland, whether it is for profit or sustainability. It can thus advance the commercial industrial interests while carrying the authority of a genuinely balanced representative body.

In his AGM speech, chairman Mark Crichton spoke on "a subject close to my heart": forestry regulation, under which he claims the industry is asphyxiating. He mentions not only felling controls but also the Wildlife and Countryside Acts, SSSI protection and landscape designations. He argues that the industry is better placed to regulate itself to ensure sustainability of its practices [Yeah, right!].

One target of TGA attack has been the Forest Stewardship Council's Certification for environmentally responsible forestry. TGA chief exec Peter Wilson compares the FSC to Nazis, and goes on, "WWF took on the role of eco-storm trooper and has tried to induce demand for growers to get certified by exerting pressure on retailers." (Timber Grower, Autumn 1996) Er....who's exerting pressure?

Following heavy TGA lobbying, Scottish Secretary Michael Forsyth announced in May that more than 80% of applications

British Plastics Federation (BPF)
6 Bath Place, Rivington St, London EC2A 3JE; tel 0171 457 5000; fax 0171 457 5045.
BPF has fought hard against the EC Packaging and Waste Directive. It's specifically concerned that it might "unfairly discriminate against PVC". (PVC is a major source of dioxins and phthalates, both hormone-disrupting chemicals). Also, "there are dangerous examples of refillable packaging being treated more favourably than single-use packaging, which is again a clear discrimination against plastics".

BPF is represented on European and British standards bodies, and has worked on guidelines to the Environmental Protection Act for local authority inspectors.

BPF has been pressing for energy recovery from plastic waste (see CATS, p. 26 )
It tried to change the Construction Products Directive's requirements on reaction and resistance to fire, so as not to discriminate against combustible plastics. It has been involved in discussions with the DoE on brominated flame retardants (very toxic), oestrogen compounds (a cause of declining male fertility), azodicarbonamide and fluoropolymers, and has relaxed regulations regarding styrene and unsaturated polyester resins.

BPF likes giving schoolkids information and presents ("awards"). (Annual Review 1995)

GOVERNMENT AS CUSTOMER
Standard argument: Government procurement policy must protect the competitiveness of UK firms. ie Industry wants Government to subsidise research and promotion to generate its profits. Market forces at work? Oh no, strategically important industries need Government financial support. Why? Because they provide jobs. (I thought the Government didn't want to support people who don't give anything worthwhile back to society.....)

Federation of Civil Engineering Contractors (FCEC)
Cowdray House, 6 Portugal Street, London W2A 2HH; tel 0171 404 4020
Over 300 members.

FCEC has lobbied the Treasury not to cut the roads programme, and backbench MPs to press for the building of more local roads; it is a member of the British Roads Federation (BRF). It has complained about archaeological rescue digs on road sites forcing costs up (Contract Journal 12/5/94). Last year, FCEC demanded reimbursement from the Treasury for dropped road schemes. (Contract Journal 12/1/95)

Defence Manufacturers' Association (DMA)
Marlborough House, Headley Road, Grayshott, Hindhead, Surrey GU26 6LG. Tel. 01428 607 778. Fax 01428 604 567.

418 members. 20 staff. It incorporates Association of Police and Public Security Suppliers, which has 480 members.

The DMA campaigns to maintain high Government spending on defence technology R&D, and argues for "the need to take defence industrial factors fully into account during decision making". It "led" British companies to exhibitions in S.Korea, Turkey, Thailand and Malaysia. (Annual Review 1995/96).

Society of Brit. Aerospace Companies (SBAC)
64 Petty France, Victoria, London SW1H 9EU. Tel. 0171 227 1000. Fax 0171 227 1067.
Members: 25 Ordinary (turnover > £75m pa); 150 Associate (smaller). 55 f-t staff. SBAC pursues 5 lobby areas:
Finance - "support for appropriate PFIs and effective Government financing" (for purchase, export credits R&D, promotion etc); a closer MoD / DTI relationship
Technology - developing Foresight Action", a technology marketing project (co-funded by Government and industry, for £40m each, up to £100m pa by 2000)
Competitiveness - developing Government programmes, which provide research, training and financial incentives
Procurement - SBAC wants promotion of UK industry overseas by the Government, and more funding to improve its home marketing network
Farnborough Airshow - maintaining the show's site.
SBAC also wants assistance for industry in achieving strategically important trans-national mergers and joint ventures [compare with claims to need more Government purchasing from UK firms - jobs etc. blah blah .....]
SBAC has taken British companies to sell their wares in Chile, Indonesia and China.
(Annual Review, 1995-96)

British Nuclear Industry Forum (BNIF)
22 Buckingham Gate, London SW1E 6LB. Tel. 0171 828 0116. Fax 0171 828 0110.
bnif@easynet.co.uk http://www.easynet.co.uk/bnif

80 members including operators (BNFL, Nuclear Electric, Magnox Electric etc.), suppliers (eg RTZ), disposers (Nirex, Wastechem), builders (Costain, Laing, Kier, Robert McAlpine etc.) and others (GEC, AEA Technology, WS Atkins, Phillips, Rolls-Royce, Mitsubishi etc.). 25 ft staff.

"Throughout the year, the Forum has been promoting the concept of sustainable development..... Nuclear power can help energy consumers meet global environmental targets, because it provides clean energy". Worryingly, it considers itself a "facilitator between the industry's education professionals and educational opinion formers."

Early this year, BNIF lobbied to highlight the commercial and export potential of the privatised industry. Many of its points appeared in the White Paper.

~600 press reports in last year. Briefs members on dealing with press, pr, public policy etc.
With UK demand now less clear, BNIF is targeting new markets in Asia. (Annual Review 1995-6)

Association of the British Pharmaceutical Industry (ABPI)
12 Whitehall, London SW1A 2DY; tel 0171 930 3477; fax 0171 747 1411. 60 staff.
ABPI is one the most powerful industrial associations. It:

* takes part in the monthly Pharmaceutical Industry Strategy Working Group (with senior members of the DoH, NHS Exec, DTI, Treasury)
* regularly meets the Prime Minister's Policy Advisory Unit, Shadow Cabinet, Comptroller of the patent office
* participates in NHS research decision-making.
* works closely with patient organisations and with schools.

ABPI is represented in and influences most of the authorities which control and evaluate new medicines. Following ABPI's strong representations on Labour's policy document 'Health 2000', which criticised the industry over pricing and profits, the subsequent 'Renewing the NHS' was far less critical.71% of MPs now view the industry favourably (57% last year).

ABPI calls on Government to maintain strong and early demand. It has narrowed the scope of the Pharmaceutical Price Regulation Scheme, which places a limit on the industry's profits to prevent it taking advantage of its monopoly situation, has removed the promotional levy (which restricted the imbalance of healthcare information) and has defeated Government proposals to pursue a policy of generic (cheaper) substitution of branded medicines.
ABPI is fighting (successfully so far) both recommended and limited lists of drugs for doctors - in favour of "prescribing freedom" (freedom to be influenced by industry, not the NHS).

ABPI is very interested in the use of biotechnology in developing new medicines. It expresses concern that as "more and more human genes are being cloned by techniques now regarded as routine, it becomes harder to patent copies of human genes ... a lack of patent protection would have a severe effect on the research and development of innovative medicines".

On working with academics: "In order for such associations to improve competitiveness discussions about the ownership of intellectual property rights arising from such collaborative research must not become a barrier to effective liaison" [It's mine, mine, mine and you can't have any. I'M important to the economy - you're not]
It has also campaigned for more funding for Technology Foresight Challenge Fund and to exclude pharmaceuticals from the Packaging and Packaging Waste Directive.

Secretary of State for Health, Stephen Dorrell: "Our policy needs to provide firm support for the pharmaceutical industry.....The industry knows that there will be no surprises, because our partnership is based upon constant, constructive dialogue.....In order to guarantee that the benefits of this are enjoyed by the UK economy the Government is committed to ensuring that regulation of the sector is flexible and supportive." (The House magazine, 18/11/96)