Bankers who torpedoed the economy are set to get away with it after all

Tags

Andrew Green QC, Andy Hornby, bank, banker, Banking Standards, Coalition, Conservative, crisis, David Cameron, Democrat, economic, economy, FCA, financial, Financial Conduct Authority, Financial Services Authority, fred goodwin, fred the shred, FSA, fund, George Osborne, government, HBOS, James Crosby, Johnny Cameron, Lib Dem, Liberal, Lord Stevenson, maxwellisation, Mike Sivier, mikesivier, Mirror, Parliamentary Commission, pension, Peter Cummings, politics, Private Eye, RBS, recession, Robert Maxwell, Royal Bank of Scotland, Tom McKillop, Tories, Tory, Vince Cable, Vox Political

Not even this many: This Economist cartoon paints a false picture of the situation. The magazine has stated: “In Britain, which had to bail out three of its biggest banks, not one senior banker has gone on trial over the failure of a bank.”

Here’s a word that should be in all our dictionaries but probably isn’t: ‘MAXWELLISATION’.

It refers to a procedure in British governance where individuals who are due to be criticised in an official report are sent details in advance and permitted to respond before publication. The process takes its name from the late newspaper owner Robert Maxwell, who fell off a yacht after stealing the Mirror Group’s pension fund.

Maxwellisation is how the irresponsible bankers who caused the economic recession, out of which some of us have just climbed according to the latest figures, are likely to get away Scot (and the word is used most definitely in reference to the land north of England) free.

Current folk wisdom has it that most of us are still unhappy about the banking crisis. We want to see heads roll.

This is a serious headache for the Coalition government, according to Private Eye (issue 1371, p33: ‘Call to inaction’) – because almost nobody involved in that fiasco is likely to suffer the slightest inconvenience.

They really are going to get away with it because the government of the day really is going to let them.

It seems that Andrew Green QC has been hired to find out whether action could and should be taken against those who bankrupted HBOS, beyond corporate lending chief Peter Cummings, who has already been banned for life from the industry and was fined half a million pounds in 2012.

That might seem a lot of money but the HBOS crash, along with that of the Royal Bank of Scotland, cost the taxpayer £60 billion (along with who-knows-how-much in interest payments).

Mr Green has also been asked why HBOS chief executives James Crosby and Andy Hornby were untouched, along with chairman Lord Stevenson.

For the facts, he need look no further than what happened with RBS, the Eye reckons.

In 2010, the Financial Services Authority – discredited forerunner to the FCA – allowed (allowed!) RBS’s top investment banker Johnny Cameron to ban himself from another senior banking job. The following year it pronounced chief executive Fred ‘The Shred’ Goodwin and chairman Sir Tom McKillop effectively blameless. Mr ‘The Shred’ was stripped of his knighthood, however.

This whitewash appears to have been an embarrassment for business secretary Vince Cable, who announced in December 2011 that he wanted to prosecute, disqualify as directors or ban from the financial sector those responsible at RBS and passed his request for disqualification up to the Scottish law officers in early 2012.

He is still awaiting an answer, it seems.

Back to HBOS, where Cable has made “similar disqualification noises”, according to the Eye, after a “highly critical” report from the Parliamentary Commission on Banking Standards last year.

Unfortunately for him, not only is HBOS also based in Scotland, so any proceedings may have to follow a similar path to those involving RBS, but also the FCA’s report into the bank’s failure is currently “unfinished”.

This is because it is being “Maxwellised” – according to the Eye, “whereby lawyers for those in the frame (if allowed) remove anything critical of their clients”.

The report continues; “With RBS, ‘Maxwellisation’ took several months and resulted in the whitewash that made any future action against those found not guilty difficult, if not impossible.

But the public wants heads to roll! Will anybody get what’s coming to them?

According to the Eye, the answer is a qualified “yes”.

Only one boss of HBOS still has links with any organisation regulated by the FCA – James Crosby is a director of the Moneybarn sub-prime car finance group and its parent, the Duncton Group. The FCA took over regulation of the consumer loan industry in April and has until December 2015 to provide full approval to the Moneybarn operation. The Eye states: “By then chairman Crosby would have to pass its ‘fit and proper’ test. He is completely unauthorised. So, a low-hanging scalp.”

Beyond that, expect “a wringing and washing of Coalition political hands, blaming legal loopholes, failures of others and it-was-all-a-long-time-ago”.

It is possible that other directors could be offered the Johnny Cameron deal – agree not to be a director for a few years “and this will all go away quickly and cheaply with no public hearings”.

Cable – along with George Osborne, David Cameron and any other Coalition MP who claimed that they were making laws to ensure the bankers responsible would face prison sentences – will simply walk away from the whole affair and hope that you forget about it.

Are you going to let that happen?

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Buy Vox Political books!
Health Warning: Government! is now available
in either print or eBook format here:

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Advertisements

What would YOU ask David Cameron in Public Prime Minister’s Questions?

Tags

Andrew Marr, association, austerity, BBC, bedroom tax, benefit, benefit cap, Coalition, companies, company, Conservative, David Cameron, dead, death, die, economy, Ed Miliband, employment, energy, firm, food banks, fracking, freedom, Freedom of Information, government, health, hedge fund, human right, Investment Partnership, Justice, kill, Labour, Mike Sivier, mikesivier, mislead, misled, National Health Service, NHS, people, pmq, politics, price, Prime Minister's Questions, privatisation, privatise, public, quality, Royal Mail, sick, social security, speech, Tories, Tory, trade union, Transatlantic Trade, transparent, TTIP, unemployment, Vox Political, Wednesday Shouty Time, welfare reform, work

Mile-wide: Mr Miliband explained his idea to bridge the gulf between the public and the Prime Minister to Andrew Marr.

Ed Miliband engaged in a particularly compelling piece of kite-flying today (July 27) – he put out the idea that the public should have their own version of Prime Minister’s Questions.

Speaking to Andrew Marr, he said such an event would “bridge the ‘mile-wide’ gulf between what people want and what they get from Prime Minister’s Questions”, which has been vilified in recent years for uncivilised displays of tribal hostility between political parties and their leaders (David Cameron being the worst offender) and nicknamed ‘Wednesday Shouty Time’.

“I think what we need is a public question time where regularly the prime minister submits himself or herself to questioning from members of the public in the Palace of Westminster on Wednesdays,” said Mr Miliband.

“At the moment there are a few inches of glass that separates the public in the gallery from the House of Commons but there is a gulf a mile wide between the kind of politics people want and what Prime Minister’s Questions offers.”

What would you ask David Cameron?

Would you demand a straight answer to the question that has dogged the Department for Work and Pensions for almost three years, now – “How many people are your ‘welfare reform’ policies responsible for killing?”

Would you ask him why his government, which came into office claiming it would be the most “transparent” administration ever, has progressively denied more and more important information to the public?

Would you ask him whether he thinks it is right for a Prime Minister to knowingly attempt to mislead the public, as he himself has done repeatedly over the privatisation of the National Health Service, the benefit cap, the bedroom tax, food banks, fracking…? The list is as long as you want to make it.

What about his policies on austerity? Would you ask him why his government of millionaires insists on inflicting deprivation on the poor when the only economic policy that has worked involved investment in the system, rather than taking money away?

His government’s part-privatisation of the Royal Mail was a total cack-handed disaster that has cost the nation £1 billion and put our mail in the hands of hedge funds. Would you ask him why he is so doggedly determined to stick to privatisation policies that push up prices and diminish quality of service. Isn’t it time some of these private companies were re-nationalised – the energy firms being prime examples?

Would you want to know why his government has passed so many laws to restrict our freedoms – of speech, of association, of access to justice – and why it intends to pass more, ending the government’s acknowledgement that we have internationally-agreed human rights and restricting us to a ‘Bill of Rights’ dictated by his government, and tying us to restrictive lowest-common-denominator employment conditions laid down according to the Transatlantic Trade and Investment Partnership, a grubby little deal that the EU and USA were trying to sign in secret until the whistle was blown on it?

Would you ask him something else?

Or do you think this is a bad idea?

What do you think?

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Buy Vox Political books!
Health Warning: Government! is now available
in either print or eBook format here:

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Do YOU feel as prosperous as you were before the crisis?

Tags

austerity, BBC, benefit, borrowing, bubble, David Cameron, dead, death, deficit, die, economy, Ed Balls, EU, Europe, exchange rate, expensive, export, food bank, G7, GDP, government, groceries, grocery, Gross Domestic Product, grow, Guardian, help to buy, housing, Huffington Post, Iain Duncan Smith, IMF, inflation, International Monetary Fund, Investment Partnership, John Mills, Keith Joseph, Lynton Crosby, Mandatory Work Activity, manufacture, manufacturing, Margaret Thatcher, national Statistics, neoliberal, Nicholas Ridley, office, ONS, peak, pre-crisis, prosper, purge, re-balance, sanction, shopping, Transatlantic Trade, TTIP, unemployment, union, Universal Credit, Workfare

[Image: David Symonds for The Guardian, in February this year.]

Britain has returned to prosperity, with the economy finally nudging beyond its pre-crisis peak, according to official figures.

Well, that’s a relief, isn’t it? Next time you’re in the supermarket looking for bargains or mark-downs because you can’t afford the kind of groceries you had in 2008, you can at least console yourself that we’re all doing better than we were back then.

The hundreds of thousands of poor souls who have to scrape by on handouts from food banks will, no doubt, be bolstered by the knowledge that Britain is back on its feet.

And the relatives of those who did not survive Iain Duncan Smith’s brutal purge of benefit claimants can be comforted by the thought that they did not die in vain.

Right?

NO! Of course not! Gross domestic product might be up 3.1 per cent on last year but it’s got nothing to do with most of the population! In real terms, you’re £1,600 per year worse-off!

The Conservatives who have been running the economy since 2010 have re-balanced it, just as they said they would – but they lied about the way it would be re-balanced and as a result the money is going to the people who least deserve it; the super-rich and the bankers who caused the crash in the first place.

You can be sure that the mainstream media won’t be telling you that, though.

Even some of the figures they are prepare to use are enough to cast doubt on the whole process. The UK economy is forecast to be the fastest-growing among the G7 developed nations according to the IMF (as reported by the BBC) – but our export growth since 2010 puts us below all but one of the other G7 nations, according to Ed Balls in The Guardian.

And it is exports that should be fuelling the economy, according to JML chairman John Mills in the Huffington Post. He reckons the government needs to invest in manufacturing and achieve competitive exchange rates in order to improve our export ability.

“Since most international trade is in goods and not in services, once the proportion of the economy devoted to producing internationally tradable goods drops below about 15 per cent, it becomes more and more difficult to combine a reasonable rate of growth and full employment with a sustainable balance of payments position,” he writes.

“In the UK, the proportion of GDP coming from manufacturing is now barely above 10 per cent. Hardly surprising then that we have not had a foreign trade surplus balance since 1982 – over thirty years ago – while our share of world trade which was 10.7 per cent in 1950 had fallen by 2012 to no more than 2.6 per cent.”

All of this seems to be good business sense. It also runs contrary to successive governments’ economic policies for the past 35 years, ever since the neoliberal government of Margaret Thatcher took over in 1979.

As this blog has explained, Thatcher and her buddies Nicholas Ridley and Keith Joseph were determined to undermine the confidence then enjoyed by the people who actually worked for a living, because it was harming the ability of the idle rich – shareholders, bosses… bankers – to increase their own undeserved profits; improvements in working-class living standards were holding back their greed.

In order to hammer the workers back into the Stone Age, they deliberately destroyed the UK’s manufacturing and exporting capability and blamed it on the unions.

That is why we have had a foreign trade deficit since 1982. That is why our share of world trade is less than one-third of what it was in 1950 (under a Labour government, notice). That is why unemployment has rocketed, even though the true level goes unrecognised as governments have rigged the figures to suit themselves.

(The current wheeze has the government failing to count as unemployed anyone on Universal Credit, anyone on Workfare/Mandatory Work Activity and anyone who whose benefit has been sanctioned – among many other groups – for example.)

You may wish to argue that the economy is fine – after all, that’s what everybody is saying, including the Office for National Statistics.

Not according to Mr Mills: “The current improvement in our economic performance, based on buttressing consumer confidence by boosting asset values fuelled by yet more borrowing, is all to unlikely to last.”

(He means the housing bubble created by George Osborne’s ‘Help to Buy’ scheme will burst soon, and then the economy will be right up the creek because the whole edifice is based on more borrowing at a time when Osborne has been claiming he is paying down the deficit.)

Ed Balls has got the right idea – at least, on the face of it. In his Guardian article he states: “We are not going to deliver a balanced, investment-led recovery that benefits all working people with the same old Tory economics,” and he’s right.

“Hoping tax cuts at the very top will trickle down, a race to the bottom on wages, Treasury opposition to a proper industrial strategy, and flirting with exit from the European Union cannot be the right prescription for Britain.” Right again – although our contract with Europe must be renegotiated and the Transatlantic Trade and Investment Partnership agreement would be a disaster for the UK if we signed it.

But none of that affects you, does it? It’s all too far away, controlled by people we’ve never met. That’s why Balls focuses on what a Labour government would do for ordinary people: “expanding free childcare, introducing a lower 10p starting rate of tax, raising the minimum wage and ending the exploitative use of zero-hours contracts. We need to create more good jobs and ensure young people have the skills they need to succeed.”

And how do the people respond to these workmanlike proposals?

“You intend to continue the Tories’ destructive ‘austerity’ policies.”

“The economy isn’t fixed but you broke it.”

There was one comment suggesting that all the main parties are the same now, which – it has been suggested – was what Lynton Crosby told David Cameron to spread if he wanted to win the next election.

Very few of the comments under the Guardian piece have anything to do with what Balls actually wrote; they harp on about New Labour’s record (erroneously), they conflate Labour’s vow not to increase borrowing with an imaginary plan to continue Tory austerity policies… in fact they do all they can to discredit him.

Not because his information is wrong but because they have heard rumours about him that have put them off.

It’s as if people don’t want their situation to improve.

Until we can address that problem – which is one of perception – we’ll keep going around in circles while the exploiters laugh.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Buy Vox Political books!
Health Warning: Government! is now available
in either print or eBook format here:

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Labour’s spending plan could humiliate the Tories

Tags

bond, borrow, Conservative, debt, deficit, economic, economy, growth, increase, interest rate, Labour, loan, mortgage, neoliberal, plan, public, spending, stimulate, taxation, Tories, Tory, Treasury

“There is an alternative” – and it doesn’t have to cost more than we’re spending now.

It seems some people are upset that Labour has announced it does not intend to increase public spending, if elected into office after next year’s general election.

This is a perfectly reasonable reaction, depending on the amount of information available to the person holding that opinion.

In other words, if you don’t know why Labour has made this decision, it is perfectly reasonable to assume that the former Party of The Left has turned Tory-lite.

That’s why we’re hearing that Labour will simply continue Tory policies; that the main three parties are “all in it together” (to overuse a hackneyed and devalued phrase).

But evidence is available to suggest that this is a big mistake.

To finance extra spending, Labour would have to borrow more money – but this would push up interest rates and create a potential disaster for people with mortgages and loans to pay off.

According to Modern Monetary Theory – an economic method that seems to have earned credence with all the main parties – government borrowing is not undertaken to finance its spending, but to maintain a target interest rate.

In times of recession, businesses borrow more and households find it hard to save money for a rainy day (as the saying goes). We have spent most of the last decade either in recession or in the slowest recovery in British history and the private sector simply doesn’t have the spare cash to pay higher interest demanded on loans in the wake of higher government borrowing.

Labour wants to safeguard those businesses; Labour wants to safeguard your homes.

The alternative would cost any government much more in the long run.

It’s as simple as that.

So Labour has set a spending target that is the same as the Conservatives’, ensuring that interest rates can be kept under control.

This doesn’t mean it will continue with Conservative-led spending plans. That would be a betrayal of Labour’s core voters.

Instead, it seems more likely that Labour will seek to stimulate the economy by taking funding away from wasteful areas – this blog would certainly wish to see less public money given to private contractors who pocket half of it as profit – and investing it in economic growth.

With more money flowing through the system and coming back to the Treasury in taxation, it will then become easier to relax restrictions on interest rates, which will help the government with its debt issue (this has to do with the way governments borrow money, issuing bonds at fixed rates of interest, and is a story for another day).

If Labour’s plan works, it will mean humiliation for the Conservatives and the Liberal Democrats, as Labour will have spent exactly the same amount doing it as those other parties have been spending for the previous five years – to little effect.

Do not misunderstand; it is perfectly possible that Labour’s spending plans could be entirely wrong-headed! Labour spent most of the last 20 years experimenting disastrously with neoliberal thinking that, continued and concentrated by the Coalition government, has led us to the current pretty pass.

In this case, it seems the Devil really is in the detail.

But the overarching strategy is sound and Labour should not be criticised for it.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy Vox Political books!
The second – Health Warning: Government! is now available
in either print or eBook format here:

The first, Strong Words and Hard Times
is still available in either print or eBook format here:

DWP debate highlights Duncan Smith’s failure to perform

Tags

alistair darling, allowance, Atos, bedroom tax, benefit, benefit cap, benefits, chaos, crack, deficit, delay, Department, due diligence, DWP, economy, Emily Thornberry, employment, ESA, food bank, Freedom of Information, Glenda Jackson, Gordon Marsden, government, Helen Jones, housing benefit, Iain Duncan Smith, IDS, Julie Hilling, lie, living wage, Major Projects Authority, mandatory reconsideration, Mark Harper, mislead, Motability, MPA, Natascha Engel, Opposition, Parliament, Pensions, Personal Independence Payment, PIP, provider, Rachel Reeves, request, reset, RTU, safety net, Sheila Gilmore, Steven Doughty, support, timetable, Universal Credit, WCA, work, work capability assessment, Work Programme, zero hours contract

“This particular Secretary of State, along with his Department, is pushing people through [the] cracks and hoping that the rest of the country will not notice that they have disappeared.” – Glenda Jackson MP, June 30, 2014.

Yesterday’s Parliamentary debate on the performance of the Department for Work and Pensions under Iain Duncan Smith was more like a trial, with witnesses lining up to condemn the accused.

If the man this blog likes to call RTU (Returned To Unit) thought he would be able to show that his behaviour had improved, he was sorely mistaken – as the comment above illustrates.

It is vital that this information reaches the general public despite the apparent news blackout, in the mainstream media, of any disparaging information about Duncan Smith or his DWP.

But we were discussing the debate as a trial. Let us first look at the evidence in favour of the government.

There. That was illuminating, wasn’t it?

Seriously, the government benches were unable to put up a single supportable point against the mountain of evidence put forward by Labour.

Iain Duncan Smith, the Secretary-in-a-State, resorted yet again to his favourite tactic – and one for which he should have been sacked as an MP long ago – lying to Parliament. He accused Labour of leaving behind a “shambles” – in fact the economy had begun to improve under intelligent guidance from Alistair Darling. “The economy was at breaking point,” he said – in fact the British economy cannot break; it simply doesn’t work that way. His claim that “We were burdened with the largest deficit in peacetime history” is only supportable in money terms, and then only because inflation means the pound is worth so much less than it was in, say, the 1940s – or for the entire century between 1750 and 1850. He called yesterday’s debate “a cynical nugget of short-term policy to put to the unions,” but the evidence below renders that completely irrelevant.

He said complaints about long delivery times for benefits were “out of date” – a common excuse. He’ll do the same in a few months, when the same complaint is raised again.

“Universal Credit is rolling out to the timescale I set last year,” he insisted – but we all know that it has been ‘reset’ (whatever that means) by the government’s Major Projects Authority.

He said there had been four independent reviews of the work capability assessment for Employment and Support Allowance, with more than 50 recommendations by Sir Malcolm Harrington accepted by the government. This was a lie. We know that almost two-thirds of the 25 recommendations he made in his first review were not fully or successfully implemented.

He said appeals against ESA decisions “are down by just under 90 per cent” – but we know that this is because of the government’s unfair and prejudicial mandatory reconsideration scheme – and that the DWP was bringing in a new provider to carry out work capability assessments. Then he had to admit that this provider has not yet been chosen! And the backlog of claims mounts up.

He tried to justify his hugely expensive botched IT schemes by pointing at a Labour scheme for the Child Support Agency that wasted hundreds of millions less than his Universal Credit, without acknowledging the obvious flaw in his argument: If he knew about this mistake, why is he repeating it?

Conservative Mark Harper said Labour opposed the Tories’ most popular scheme – the benefit cap. That was a lie. Labour supported the cap, but would have set it at a higher level. We know that the Coalition government could not do this because it would not, then, have made the huge savings they predicted.

Now, the evidence against.

First up is Rachel Reeves, shadow secretary of state for work and pensions: “After £612 million being spent, including £131 million written off or ‘written down’, the introduction of Universal Credit is now years behind schedule with no clear plan for how, when, or whether full implementation will be achievable or represent value for money.

“Over 700,000 people are still waiting for a Work Capability Assessment, and… projected spending on Employment and Support Allowance has risen by £800 million since December… The Government [is] still not able to tell us which provider will replace Atos.

“Personal Independence Payment delays have created uncertainty, stress and financial costs for disabled people and additional budgetary pressures for Government… Desperate people, many of whom have been working and paying into the system for years or decades and are now struck by disability or illness, waiting six months or more for help from the Department for Work and Pensions.

“The Work Programme has failed to meet its targets, the unfair bedroom tax risks costing more than it saves, and other DWP programmes are performing poorly or in disarray.

“Spending on housing benefit for people who are in work has gone up by more than 60 per cent, reflecting the fact that more people are in low-paid or insecure work and are unable to make ends meet, even though they may be working all the hours God sends.

“More than five million people — 20 per cent of the workforce — are paid less than the living wage. Furthermore, 1.5 million people are on zero-hours contracts and 1.4 million people are working part time who want to work full time.

“This… is about the young woman diagnosed with a life-limiting illness who has waited six months for any help with her living costs. It is about the disabled man whose payments have been stopped because he did not attend an interview to which he was never invited.

“The Government are wasting more and more taxpayers’ money on poorly planned and disastrously managed projects, and are allowing in-work benefits to spiral because of their failure to tackle the low pay and insecurity that are adding billions of pounds to the benefits bill.

“The Government are careless with the contributions that people make to the system, callous about the consequences of their incompetence for the most vulnerable, and too arrogant to admit mistakes and engage seriously with the task of sorting out their own mess.

“What this Government have now totally failed to do is to remember the human impact, often on people in vulnerable circumstances, of this catalogue of chaos. Behind the bureaucratic language and spreadsheets showing backlogs and overspends are people in need who are being let down and mistreated, and taxpayers who can ill afford the mismanagement and waste of their money.

“To fail to deliver on one policy might be considered unfortunate; to miss one’s targets on two has to be judged careless; but to make such a complete mess of every single initiative the Secretary of State has attempted requires a special gift. It is something like a Midas touch: everything he touches turns into a total shambles.

“Meanwhile, the Secretary of State will spew out dodgy statistics, rant and rave about Labour’s record, say “on time and on budget” until he is blue in the face and, in typical Tory style, blame the staff for everything that goes wrong.”

Julie Hilling (Labour) provides this: “The Government do not know what they are talking about… They talk about the number of jobs being created, but they do not know how many of them are on zero-hours contracts or how many are on Government schemes or how many have been transferred from the public sector.”

Stephen Doughty (Labour/Co-op): “another stark indictment of their policies is the massive increase in food banks across this country.”

Helen Jones (Labour): “When I asked how many people in my constituency had been waiting more than six months or three months for medical assessments for personal independence payment, the Government told me that the figures were not available. In other words, they are not only incompetent; they do not know how incompetent they are!”

Sheila Gilmore (Labour): “Although the problems with Atos were known about—and it is now being suggested that they had been known about for some time—a contract was given to that organisation for PIP. Was due diligence carried out before the new contract was issued?”

Gordon Marsden (Labour): “Many of my constituents have been caught by the double whammy of delays involving, first, the disability living allowance and now PIP. They have waited long periods for a resolution, but because a decision is being reconsidered, their Motability — the lifeline that has enabled them to get out of their homes — has been taken away before that decision has been made. Is that not a horrendous indictment of the Government?”

Emily Thornberry (Labour): “I have been making freedom of information requests.. in relation to mandatory reconsiderations. When people get their work capability assessment, and it has failed, before they can appeal there has to be a mandatory reconsideration. The Department does not know how many cases have been overturned, how many claimants have been left without any money and how long the longest period is for reconsideration. It cannot answer a single one of those questions under a freedom of information request.”

Natascha Engel (Labour): “The welfare state is designed as a safety net to catch people who absolutely cannot help themselves… That safety net is being withdrawn under this government, which is certainly pushing some of my constituents into destitution.”

There was much more, including the devastating speech by Glenda Jackson, partly in response to Natascha Engels’ comments, that is reproduced in the video clip above.

The vote – for the House of Commons to recognise that the DWP was in chaos and disarray – was lost (of course). A government with a majority will never lose such a vote.

But once again, the debate was won by the opposition. They had all the facts; all the government had were lies and fantasies.

By now, one suspects we all know somebody who has died as a result of Coalition government polices on welfare (or, preferably, social security). Two such deaths have been reported in the Comment columns of Vox Political since the weekend, and it is only Tuesday.

That is why it is vital that this information reaches the general public despite the apparent news blackout, in the mainstream media, of any disparaging information about Duncan Smith or his DWP.

Share it with your friends, use parts of it in letters to your local papers or radio stations, even mentioning it in conversation will help if the other person isn’t aware of the facts.

Don’t let it be suppressed.

You don’t want to do Iain Duncan Smith’s work for him, do you?

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy Vox Political books!
The second – Health Warning: Government! is now available
in either print or eBook format here:

The first, Strong Words and Hard Times
is still available in either print or eBook format here:

The ugly face of New Labour rears up again: Chris Leslie and Nita Clarke

Tags

austerity, Blair, Blairite, Chris Leslie, Coalition, Conservative, crisis, Customs, cut, economic, economy, George Osborne, hm, hmrc, Huffington Post, Labour, Margaret Thatcher, National Health Service, neoliberal, New, NHS, Nita Clarke, pension, privatisation, Progress, recession, Revenue, right-wing, thinktank, welfare state

 

It seems the neoliberal Blairites of New Labour are coming out of the woodwork in an effort to ensure that nobody in their right mind supports the modern Labour Party next year.

According to the Huffington Post, shadow chief secretary to the Treasury Chris Leslie reckons that a future Labour government will not undo the Coalition’s hugely unpopular cuts but will continue to impose the austerity that has kept our economy in crisis for the last four years.

In that case, why bother voting for Labour? We’ve already got one lot of Conservatives in power; there’s no need for any more.

Just to recap what we all know already, austerity is no way out of a recession. Economies grow when an increased money supply travels through the system, making profits for businesses and creating the fiscal multiplier effect. This means more tax comes to the government and it is able to pay down its debts. Austerity cuts off that money supply, making it much more difficult for money to circulated, profit to be made and tax to be taken. Evidence shows that the only people who profit from it are those who were rich already.

Indeed, the current economic miracle (if you believe George Osborne) was engineered by government investment – rather than austerity – in a housing price bubble. It’s almost a return to Keynesian economics, but done in a cack-handed, amateurish way that will cause more problems in the long run.

Austerity is, therefore, a Conservative policy and one that should be abandoned if Labour ever comes to power. The fact that this Leslie person is promoting it shows his true-Blue colours. Perhaps someone should start a petition to have him ejected from the party.

Retaining austerity was described by the HuffPost as part of “Labour’s ‘radical’ policy plans”, but this is ridiculous. How can retaining a policy that is already causing uncounted harm be, in any way, radical? It’s just more of the same neoliberal Conservatism.

“George Osborne has had his five years to eradicate the deficit. I am determined that we finish that task on which he has failed,” said Leslie in the article. How does he propose to achieve that aim, if his methods are the same? The man just isn’t making sense.

Meanwhile, a former Blair aide named Nita Clarke has defended another pillar of neoliberalism – privatisation – by making the absurd claim that Labour should not criticise private firms when they fail to deliver public services.

Speaking at a conference by the right-wing thinktank Progress, she said: “We have to be really careful that we’re not always seen as attacking the private sector and celebrating their failures. How do you think that makes the staff who work there feel?”

How does Nita Clarke think British citizens feel about being let down on a regular basis by these profit-guzzling clowns, ever since Margaret Thatcher’s Conservatives first started letting them into places where they did not belong?

How does Nita Clarke think British citizens felt when neoliberal New Labour refused to push back the tide of privatisation?

How does Nita Clarke think British citizens should feel about the fact that privatisation is now threatening the welfare state, the National Health Service and even state pensions?

Only today, Vox Political reblogged an article warning that HM Revenue and Customs may be undergoing preparations for privatisation.

Like austerity, privatisation is a fundamental pillar of the current neoliberal agenda. It has no place in the Labour Party, if the Labour Party is serious about opposing the Conservatives at the next election.

There should be no place in Labour for Chris Leslie, Nita Clarke, or anybody who supports their views, either.

It’s a view that might be unpopular with the Blue suits that make up the current Labour leadership.

But it’s the only way Labour will ever come up with a really ‘radical’ – and workable – plan.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Labour has lost its ideals – now the Party of the People needs to find them again

Tags

Conservative, Daily Mail, economy, Ed Balls, Ed Miliband, Facebook, fairness, focus group, Guardian, hard work, housing, ideal, insecurity, Keith Joseph, Labour, living standard, Margaret Thatcher, Mike Sivier, mikesivier, neoliberal, Nicholas Ridley, opportunity, Owen Jones, people, policies, policy, politics, poverty, promise, reactionary, right-wing, social, special adviser, Tory Lite, Tristram Hunt, UKIP, union, value, Vox Political, work, yvette cooper

Isn’t it desperately disappointing that, after the British people showed Ed Miliband in no uncertain terms that Labour is still going in the wrong direction, his first response was an appeal for us all to rally in support of his values, whatever they are.

No, Ed, no. It’s time the Labour Party gave up trying to force us to accept something we don’t want. It’s time you gave up being Tory Lite. It’s time – for crying out loud, this isn’t rocket science! – it’s time you gave us all a chance to believe you share our values!

Can you do that – you and your pseudo-socialist friends Ed Balls, and Yvette Cooper, and Tristram Hunt (and the rest)? If not, you need to make way for people who can – before it is too late.

The people’s response to Labour’s offer was written very clearly across ballot papers all over the country on Thursday: Too similar to the Conservatives! We won’t have either! In fact, we’ll support a party that is even more madly right-wing than either of you, just to show that we don’t want you.

And that’s just the response of those who voted. Those who didn’t were making an even plainer message: Why bother, when there isn’t a cigarette paper that can slide between any of you?

Look at this response from Terry Cook on the Vox Political Facebook page: “It [Labour] needs to prove it doesn’t share UKIP or Tory values; simple.”

Now look at the graph at the top of this article, showing that the public has lost faith in Labour every time it has supported reactionary, right-wing, Conservative, neoliberal policies – while announcements of policies that actually help people have restored support to the party.

The people don’t believe Labour should be having anything to do with anti-Socialist schemes. Here’s Alan Weir: “Labour lost my vote. They are no longer a socialist party and do not represent my views.”

He’s one of millions of potential Labour supporters, Ed! Why are you slinging them out wholesale in order to gain a handful of Daily Mail readers (a forlorn hope anyway)?

The evidence suggests increasing numbers of people are rebelling against Conservative control – but the lack of any credible alternative from Labour has left them with nowhere to go. In that sense, Labour may be said to be driving people away from democracy and into slavery in a complete U-turn – away from the principles on which the party was created.

Martin Williams: “He is totally ignoring the electorate because these people only do democracy when it suits them!”

Ros Jesson: “Some Labour people… on BBC’s coverage… their frustration with the leadership was almost palpable.”

Ed’s message highlighted his values of “hard work, fairness and opportunity”. What did people think of that?

“I am sick to death of ‘hard work’ being touted as a value, as if those desperate to find a job were of no value,” commented Pauline Vernon. “The Labour Party is still so determined to occupy the middle ground they are becoming indistinguishable from the Conservatives.”

Paula Wilcock: “Half hearted promises, no believable policies. I want to hear a realistic plan of what they are going to do to get voters like me… to go back to the Labour Party.”

Baz Poulton (who supplied the image), had this to say: “Why not actually stand up for Labour values and ideals instead of just subscribing to the same as the Tories? Labour’s support has been dwindling as they have become more and more right wing… Standing more in line with Labour’s original values sees an obvious climb in support, while their desperation to be more Tory than the Tories is seeing their support suffer.

“It’s obvious why that happens, and what they need to do to get the support of their traditional voters who are turning elsewhere now. Labour’s manifesto reads like the Tory one.”

The worst of it is that, looking at the historical context, this is what Labour wanted – from the New Labour days onward. Look at Owen Jones’ recent Guardian article: “For years the political elite has pursued policies that have left large swaths of Britain gripped by insecurity: five million people trapped on social housing waiting lists; middle-income skilled jobs stripped from the economy; the longest fall in living standards since the Victorian era, in a country where most people in poverty are also in work.”

That was exactly what Margaret Thatcher, Keith Joseph and Nicholas Ridley planned back in the 1970s, as revealed in The Impact of Thatcherism on Health and Well-Being in Britain: “Their view was that defeat of the movement that had forced Heath’s U-turn would require, not simply the disengagement of the state from industry, but the substantial destruction of Britain’s remaining industrial base. The full employment that had been sustained across most of the post-war period was seen, together with the broader security offered by the welfare state, to be at the root of an unprecedented self-confidence among working-class communities.

“Very large-scale unemployment would end the ‘cycle of rising expectations,’ [and] permit the historic defeat of the trade union movement.”

This is exactly what Owen Jones wrote about on Monday. Nicholas Ridley put these ideas forward in (for example) the Final Report of the Policy Group on the Nationalised Industries in – prepare to be shocked – 1977.

And Labour – in office – did nothing about it. This is part of the reason people don’t trust Labour now.

Let’s go back to Mr Jones: “For years Labour has pursued a strategy of professionalising its politicians: its upper ranks are dominated by privileged technocrats who have spent most of their lives in the Westminster bubble.

“The weakening of trade unions and local government has purged working-class voices from a party founded as the political wing of organised labour: just four per cent of all MPs come from a manual background.

“Special advisers are parachuted into constituencies they have never heard of.

“Policies are decided by focus groups; a language is spoken that is alien to the average punter, full of buzzwords and jargon such as ‘predistribution’ and ‘hard-working people better off’.”

All of these things are wrong. There’s no point in even going into the reasons; any right-thinking person will agree that an MP who has never had a proper job (working as a researcher for another MP doesn’t count) is infinitely less use than one who has had to work for a living.

What is Labour’s reaction to UKIP’s Euro win? “The likes of Ed Balls want to respond to the high tide of Farageism with a firmer immigration-bashing message.” In other words, following UKIP’s right-wing lead.

Owen is correct to say: “This is political suicide”. In fact, for Ed Balls, it should be a sacking offence. He’s got no business coming out with it and has embarrassed Labour and its supporters by doing so.

He is also right to say that Labour must be more strident about its policies. Not only that, these policies must address the problems that have been created by neoliberal Conservatism and reverse the trends. That doesn’t mean using the same tools, as New Labour tried – because when the electorate gets tired of Labour again, the Tories would be able to change everything back and hammer the poor like never before.

No – it means removing those tools altogether. A fresh approach to clean out the rot – and the vigilance required to ensure it does not return.

If Ed Miliband really wants to win next year’s election – and this is by no means certain at the moment – then Labour needs to rediscover the values of the British people.

And that means paying attention when we say what those values are.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Why is it fair for taxpayers to subsidise businesses but not the disabled?

Tags

business, Conservative, depress, disability, disabled, economy, employment, George Osborne, in-work, Labour, living wage, low-paid, Mike Sivier, mikesivier, minimum wage, pay, people, politics, salary, social security, subsidise, Sunday Times rich list, taxpayer, Tories, Tory, Treasury, UKIP, unemployed, Vox Political, wage, welfare

Swivel-eyed loon: This is the kind of many who thinks subsidising businesses to be lazy, while refusing to support disabled students (no matter how intelligent they are) is a clever idea. [Picture: Left Foot Forward]

George Osborne was today set to attack both the Labour Party and UKIP as being bad for business. Isn’t that a bit rich, coming from a man whose party uses taxpayers’ money to subsidise private firms?

Across the UK, firms of all sizes – ranging from huge multinationals right down to the smallest traders – take advantage of the taxpayer-funded benefit system that supports people who earn less than the Living Wage (the minimum amount necessary for a working person to be able to pay their own way).

Osborne would have you believe this is good for Britain; more firms are employing more people – and that’s got to be good, right?

Wrong. More people may be employed, but on increasingly less money, meaning the burden on the taxpayer is increasing all the time.

But the taxpayer has increasingly less money to give to the Treasury, meaning that – instead of saving the economy – Osborne has put us into a vicious spiral of diminishing returns.

That’s what you get when you ask a towel-folder to do a real job!

It would be far better to demand that businesses pay the Living Wage. It isn’t an impossible dream – only a few decades ago, it was possible for one parent to earn enough to house and feed an entire family. Why doesn’t this happen anymore?

There is, in fact, no reason for it to have stopped.

The only conclusion we can reach is that the Tory government is using the system to leach money into the pockets of wealthy businesspeople. By pushing benefit payments so low that the unemployed and low-paid struggle to support themselves, they have made it possible for employers to pay less and pocket more.

That is why the names on the Sunday Times Roll Call of Shame (otherwise known as the Rich List) are so much richer this year than they were before the Tories weren’t elected.

The answer is simple: Compel businesses to pay the Living Wage.

Oh, but you think that will be bad for business too, do you?

Mr Osborne would tell you so, would he?

How odd – because this would be no different from a policy his government has been happily forcing on benefit claimants since 2010.

You see, as stated above, the policy has been to make living on benefits extremely difficult in order to force people to seek employment. This in turn allows firms to depress wages because they can tell the workforce there are plenty of other people waiting to take their places.

Only today, on this blog, we were discussing Tory David Willetts’ plan to cut Disabled Student Allowance. He wants us to believe that this will get students with disabilities to work harder, rather than expecting the taxpayer to lay everything at their feet; in fact, he is taking away their lifeline and leaving them to starve.

But the argument works just as well with employers. Any government with the guts to tell them that the crutch of in-work benefits is being removed and they will have to pay the difference is sending out the same message to employers as they did to benefit claimants: You’ve had it easy for too long. Now it’s time for you to earn your keep.

Some firms will go under. Unlike the disabled people being victimised by David Willetts (et al), we should shed no tears for them; they weren’t helping the economy.

More will pay up – finding new markets to fund the extra expenditure. These are the businesses that will build the real economic recovery.

Labour is one of only a few political organisations that support the Living Wage, and therefore the only mass-appeal political party that would have a genuinely beneficial effect on the economy.

Oh, but I forgot.

You were listening to George Osborne.

And he says Labour is bad for business.

But then – he’s no economist.

He’s a towel-folder.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

UKIP uncovered: More hidden policies revealed (part one of a possible series)

Tags

bank, Bank of England, Bristol Airport, economy, election, general, Gordon Brown, Green Belt, Green Party, house, housing, image, immigration, local, manifesto, meme, Mike Sivier, mikesivier, Nigel Farage, policies, policy, politics, regulation, The Yorker, UKIP, University of York, Vox Political

[Image: alecshelbrookeblog.com]

Yesterday’s article (UKIP: They don’t like it up ’em) delved into the facts behind a controversial meme that has been doing the rounds on the social media.

The image claims to be publicising UKIP policies, and seven out of the 10 policies claimed for the party have been verified, as demonstrated in the VP article.

Vox Political has been doing a little digging into the others.

The claim that UKIP wants to cancel all planned house-building on Green Belt land appears to have been based on the party’s 2010 general election and 2013 local election manifestos, which are no longer available to the public. Party members have stated many times, recently, that Nigel Farage has rubbished the 2010 document and its contents are not to be taken as UKIP policy. The party’s attitude to its manifesto from last year is less clear.

The relevant line, as quoted in this Property Newshound blog, is: “by controlling immigration, large areas of British countryside will not need to be destroyed by house building.” The rest of the article is well worth reading too.

UKIP’s South Buckinghamshire website discusses plans to build on the Green Belt, with a reply to a summary document by the Conservative Party:

“Conservatives say: ‘So we need to find places to build more homes…’ (page 2)

“UKIP reply: Not on green belt land!”

The strange thing is that preventing development of Green Belt land should not be a controversial issue, yet I have just – as I have been writing this blog – received a comment from a UKIP supporter stating: “Every bullet point [on the meme] is a fiction, written by a Green Party activist.”

Where does that leave UKIP policy? Does the party now want to build on Green Belt land, because the Green Party (apparently) opposes it?

Personally, I’m against that. My former home in Bristol was on the edge of the city, next to Green Belt land which became threatened by the South Western regional assembly (whatever it was called). Residents had a terrible time fighting off the proposed development, which seemed to be motivated solely by a desire to build a new road to Bristol Airport, enabling faster journeys from it to the city and back.

Building on the Green Belt – of any kind other than what is absolutely necessary for agricultural purposes – should be banned, in the opinion of this writer. It is land that has been set aside in the national interest, and proposals to develop it should be seen for what they are – money-grubbing by disinterested corporates who live in mansions on estates that will never be disturbed by such environmentally-damaging raids.

The claim that UKIP wants to cancel bank regulations “to make banks safer” was a commitment on the party’s policy website, according to this article in The Yorker (which is simply the first I found in a Google search). The Yorker is a student-run media site, based at the University of York, which claims no political affiliations at all.

It states: “According to their policy website UKIP… wants [to] further de-regulate the city… Indeed their primary reasons for leaving the EU relate to the need to cut such rights and regulations in the name of The City and big business.”

This would appear to be corroborated by Nigel Farage himself, who wrote in an Independent article in January this year: “And let’s look closer to home for where the fault lies with the banking crisis. I know it might still be trendy to “bash the bankers” but this crash was entirely predictable. It was Gordon Brown handing over regulation of the banking industry from the Bank of England who, since 1694 has done a pretty good job, and handed it over to the tick-box bureaucrats in Canary Wharf.”

It seems the case for UKIP wanting bank deregulation is also proven.

Unlike the Green Belt issue, bank deregulation would be a huge mistake for the UK. Farage is wrong in his claim that Gordon Brown was at fault for re-introducing regulation to the banking sector; it is the fact that he didn’t introduce enough regulation that let us down. The banks all told him that they were perfectly capable of policing themselves, and he took them at face value. Meanwhile the Conservatives, who have been blaming Labour for being too loose with regulation ever since they got back into office, despite doing nothing about the issue themselves, were calling for even less regulation at the time of the banking crash.

The UK requires more banking regulation, not less. Less regulation would encourage further abuses of the banking system and would inevitably lead to another disaster. This time the consequences could be appalling, for millions of low-paid British citizens. Farage does not clarify why he wants to court this.

More revelations may follow.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

How do we wrestle fairness from a rigged economic system?

Tags

abroad, benefit, board, boss, business, capitalism, capitalist, company, condition, corporate, corporation, debt, Department for Work and Pensions, DWP, economic, economy, employer, fatcat, firm, in-work, inflation, Investment Partnership, make-work, Mandatory Work Activity, Margaret Thatcher, Mike Sivier, mikesivier, Milton Friedman, misery, multinational, national, offshore, pay, politics, profit, protection racket, relocate, sanction, servitude, shareholder, social security, subsidise, tax haven, taxpayer, TPP, Trans-Pacific Partnership, Transatlantic Trade, TTIP, unemployment, Vox Political, welfare, work, Work Programme, Workfare

The problem in a nutshell – and this cartoon was drawn in 1972! [Image: Alan Hardman]

It’s terrific when an article makes you think.

Why Capitalism needs unemployment, by Cheltenham & Gloucester Against Cuts, tells us that unemployment is used as a weapon against the workers – with the threat of it used to force pay cuts on employees, while we are told to fear inflation if unemployment falls.

So fatcat company bosses win either way, it seems.

The article commented on Margaret Thatcher’s ideological mentor, Milton Friedman, who “understood that low levels of unemployment give confidence to workers, who can fight for better pay and conditions. When they’re successful, the profit margins of capitalists are reduced, causing them to put their prices up in response“.

We know this happens; we have seen it many times. Some may argue that it is different from cases in which shortages of particular commodities push up their prices and the prices of products that are made from them – but, with fuel prices as the only notable exception, have you ever seen prices drop after these shortages end?

The system is rigged to ensure that working people stay poor, either through pay cuts during high unemployment or inflation in low unemployment; meanwhile the employers and shareholders ensure that they stay rich, by sharing out extra profits gained by keeping pay low or by putting up prices.

What do they do with this money?

The answer, it seems, is nothing. They bank it in offshore tax havens and leave it there. This is why, we are told, Britain’s richest citizens have more than £20 trillion banked offshore at the moment.

That’s more than £20,000,000,000,000! Enough to pay off this country’s national debt 18,000 times over and still have plenty to spare. Enough to solve the problems of the world, forever. It is, in fact, more money than we can comfortably imagine.

It is doing nothing.

Faced with this knowledge, there can only be one logical question: Why?

Why rig the system so that ever-larger sums of money pour into these offshore accounts, if nothing is to be done with it? Where is the sense in that?

The only logical answer appears to relate to its effect on workers: Keeping the profits of their work away from the workforce means they are kept in misery and servitude to the ruling classes – the parasitical board members and shareholders.

There are knock-on effects. Taxpayers are hit twice – not only are they forced to grapple with ever-more-hostile pay offers, but their taxes pay for in-work benefits that subsidise corporate-imposed pay levels; they support people who have been forced into unemployment unnecessarily and the silly make-work schemes that are forced on those people by the Department for Work and Pensions, under threat of sanction.

It’s a protection racket. There should be a law against it. And this begs the next question: Why isn’t there a law against it? How can this corrupt system be dismantled and what should replace it?

That’s a very good question, because the other cosh being held over our collective heads is the possibility that firms will move abroad if new laws in this country threaten their massive profits. This is where an international agreement between nations or groups of nations would be very useful, if it was carried out in the right way – a Transatlantic, or Trans-pacific, Trade and Investment Partnership, perhaps.

And what do we see? Plans for such agreements have been put together and they do the exact opposite of what they should – tying the workers into ever-worsening conditions. This is why the TTIP, currently being pushed on the European Union, must be rejected – and why bosses will do anything to ensure it succeeds.

This is the situation. It seems clear that nothing will change it for the better until somebody has the courage to stand up to these manipulators (who were probably schoolyard bullies back in the day) and say enough is enough; change is coming – do what you will.

Tax evasion and avoidance is already a huge issue here in the UK; perhaps we need to make a criminal offence of manipulating the economy – with prison sentences for bosses who put their prices up purely to retain high profit margins when their salaries are already dozens of times higher than those of their workers.

But what else is needed? How can such a mechanism be brought in without scaring off business? Or should we let them go, and put something fairer in their place? Ban them from trading in the UK unless they conform to the new model?

These are ideas that need exploration – by many people, not just a few.

What do you think should happen?

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here: