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Will you give British sovereignty to a foreign business?

21 Wednesday May 2014

Posted by Mike Sivier in Business, Conservative Party, Democracy, Economy, Employment, European Union, Health, Human rights, Labour Party, People, Politics, Public services, UK, UKIP, USA

≈ 20 Comments

Tags

America, Britain, British, business, Conservative, corporation, Derek Vaughan, dispute, election, EU, Europe, Green Party, health, investment, investor, ISDS, Jill Evans, Kay Swinburne, Labour, member, national, NHS, Parliament, partnership, referendum, service, settlement, sovereign, state, Tories, Tory, trade, transatlantic, tribunal, TTIP, UK, union, United States, USA


[Image: The Guardian]

[Image: The Guardian]

It is the eve of the European Parliamentary elections. How much do you really know about what your candidates would do – if elected?

Much of the debate so far has focused on personalities rather than policies – but does it really matter that Labour won’t commit to an in-out referendum on our EU membership (which is a UK Parliament issue in any case) if its MEPs do their job properly and defend the interests of the British people in the Brussels assembly?

Does it matter that the Conservatives are promising such a referendum, if they give away your right to a high-quality health service, along with your rights at work, to American companies?

These are the issues that really matter.

A few months ago, Vox Political was running articles on the highly controversial Transatlantic Trade and Investment Partnership, currently being negotiated between the European Union and the United States of America. Much of the groundwork has been carried out in secret, hidden from public scrutiny, but the information that has been made available has aroused serious concern that this agreement will weaken existing standards and regulations that protect workers and consumers in the EU.

In particular, the Investor-State Dispute Settlement (ISDS) would allow any foreign company operating in the UK to make a claim against the government for loss of future profits resulting from any regulatory action by the government, such as new legislation. Such claims would be considered by an unelected, unaccountable tribunal composed of three corporate lawyers whose decisions are likely to favour the corporations and would override national laws.

It is widely believed that the TTIP will be used by our Conservative-led government as a means of locking-in its detrimental changes to the National Health Service.

With this in mind, I wrote to three of the four current Welsh MEPs (the fourth is standing down), asking a few simple questions:

Do you want the health of your constituents to depend on a foreign company’s balance sheet?

Are you in favour of sales or the safety of your constituents?

Do you support attacks on workers’ rights?

Do you support the people who elected you – or are you a puppet of the corporations?

The response from Labour’s Derek Vaughan was characteristically short and to the point: “As you would expect, Labour MEPs oppose the ISDS in certainly anything which would allow the Tories/UKIP to argue for further privatisation of the NHS.

“You may also wish to take this matter up with those who really are the puppets of corporations.”

We’ll come to them shortly. Derek’s answer – though brief, tells you everything you need to know about Labour. They aren’t staying silent (as a recent Liberal Democrat letter asserted) and they aren’t pandering to corporate interests. Labour will defend British institutions against any European ruling or agreement that infringes on them. That’s a promise.

Jill Evans, for Plaid Cymru, had a little more to say: “I share your concerns regarding the TTIP as does the rest of my group in the European Parliament, the Greens/EFA group.

“We are 100 per cent against ISDS as we do not believe that extra-judicial powers should be given to foreign investors. We have been working hard to lobby the Commission to get them to make changes to the TTIP… The TTIP will include a strong focus on … co-operation but the regulatory cultures and social and environmental standards on both sides of the Atlantic are very different; conflicts over GMOs and Hormone Beef are just two examples.

“The TTIP is also controversial from an industrial policy point of view. The two blocs are not complementary, but in fierce competition for global markets and the setting of global industrial standards. Transatlantic cooperation could, however, pave the way for higher global ecological standards and for a faster conversion towards a sustainable green economy. Both the EU and the US need to find new avenues to create social wealth. The task we are set with is trying to find the right balance.”

So Plaid and the Greens are as strongly-opposed to the ISDS as Labour, but acknowledge there are advantages to be had – if this agreement is negotiated by the right representatives. This is why it is so important that you use your vote wisely. A vote for UKIP might seem like a worthwhile protest against the UK’s Conservative government, but what good will it do when the Kippers, who support corporate power, wave through measures to strip you of your rights?

And then we have Kay Swinburne, representing the Conservatives. Her response was the longest of the lot, perhaps suggesting that she knew her party’s stance was harder to justify.

“Transatlantic trade flows (goods and services trade plus earning and payments on investment) averaged $4 billion each day through the first three quarters of 2011. In 2008 EU/US combined economies accounted for nearly 60 per cent of global GDP,” she stated.

“However, for all its value and importance, the EU-US trading relationship still suffers from numerous obstacles, preventing it reaching its full potential to provide growth and jobs. It has been estimated that the deal could bring an extra £10bn to the UK annually, which would give a huge boost to jobs in our economy at a time when we are still suffering with the effects of the economic crisis.”

There is little evidence for this, and even that is poor. The European Commission’s own impact assessment admits that a 0.5 per cent increase in growth would be “optimistic”, and independent research suggests that a meagre 0.01 per cent increase in the growth rate over 10 years is more likely. The North American Free Trade Agreement between the US, Canada and Mexico led to a net LOSS of almost a million jobs in the US. You have to ask why this MEP is arguing against the facts.

“That is an extra £400 to every UK household and while some reports criticise the economic focus, I would argue that this is exactly the kind of stimulus package we should be focusing on,” she continued. Again, this is inaccurate. Every household will not gain an extra £400 because of business deals carried out between very few, very large, corporations. In fact, much larger amounts of money will go to the kind of people who have too much of it already.

“ISDS is a system that allows investors to initiate proceedings directly against a government should they believe that their property has been expropriated illegally, that is, not in conformance with the laws of that country itself,” she continued, skimming over the possibility that a legal challenge could be mounted against changes in a country’s laws – such as Labour’s planned repeal of the Health and Social Care Act that allowed the creeping privatisation of the NHS, if the Conservatives are defeated in the 2015 UK general election.

“The Conservatives in the European Parliament support the inclusion of an ISDS chapter in the agreement, because even with developed countries it ensures certainty for our investors, including SMEs.”

She does not explain what that certainty may be. Is it the certainty that they can run roughshod over their workers? That their profits will take precedence over our health? What about certainty for our citizens?

“Rest assured that this is not a mechanism that will allow for fundamental laws of the EU, such as the REACH legislation on chemicals or the Tobacco Products Directive, to be overturned by a foreign company.” That does not offer any consolation if the laws of the UK do not remain similarly inviolate.

“The EU and its Member States will and must remain able to adopt and enforce, in accordance with their own and EU laws, measures necessary to pursue legitimate public policy objectives in the fields of social and environmental standards, security, the stability of the financial system, and public health and safety.” This seems encouraging, but is overshadowed by what this Conservative MEP has already stated.

“The European Parliament, as well as the UK Government, will also have to give final approval to the deal.”

This is why we need a sceptical European Parliament, and a critical UK Parliament when the deal comes to Westminster for ratification.

That is the information provided by the Welsh MEPs. Labour and the Green Party will stand up for you, while the Conservative Party and UKIP will stand up for the few.

Put in that way, it isn’t a choice at all.

But is the electorate well-enough informed to make the appropriate decision?

Follow me on Twitter: @MidWalesMike

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Tory Euro flier is a catalogue of failure

11 Sunday May 2014

Posted by Mike Sivier in Benefits, Conservative Party, Cost of living, Economy, Employment, European Union, Foreign Affairs, Health, Immigration, Politics, Poverty, Tax, UK

≈ 16 Comments

Tags

benefit, benefit cap, Conservative, deficit, economy, election, employment, EU budget, Euro, European, flier, immigration, investment, leaflet, National Health Service, NHS, Parliament, partnership, privatisation, privatise, social security, tax, Tories, Tory, Transatlantic Trade, treaty, TTIP, veto, welfare


140511flier

A blue leaflet landed on the mat yesterday, urging me to vote Conservative and offering no less than 11 highlighted reasons for doing so.

There’s no chance of this happening, because I know far too much about the state of the nation to be fooled by what was said. Other people may not be as lucky, so let’s run through these claims.

The front cover proclaims: “A stronger economy at home” – not true. The resurgence claimed by the Tories has still, after a year, failed to bring Britain back up to its pre-crisis peak, and pay levels have been skewed to put the lowest earners 14 per cent worse-off than they were under the last Labour government.

“Renewed respect abroad” – another howler. Our military adventures mean we are seen as America’s lapdog, while our economic efforts mean we are seen as China’s.

“Real change in Europe” – ridiculous. David Cameron has marginalised Britain in Europe. We’ll come to an example of this in a moment.

Inside the leaflet is a page headed “What we have done”, which attempts to muddy the issues by linking Tory policies within the UK with their strategy in Europe. The effect is similar to a town councillor running for a seat on the county council, saying if he is elected he will ensure that an allotment is available for everybody (allotment land is a town council responsibility and nothing to do with county councils).

So, under the heading “What you have told us”, the leaflet proclaims: “Cut the deficit”. Under “What we did” it states: “So we’ve cut the deficit by a third”. This is nothing to do with Europe and also misrepresents the facts. When the Coalition government sidled into power it said it would eliminate the deficit by 2015. This is not going to happen and claiming success in cutting it by a third (partially by scrapping investment schemes that should have been kept) is an insult.

Next line: “Create more jobs” – “So we’ve helped businesses create more than 1.6 million new jobs”. If the economy was running properly, this number of new jobs would have created a huge boost for the economy – far more than we’ve seen. The problem is that these jobs are too low-paid to make a difference. It is working-class people who lift the economy because they spend more of their income, pushing money through the system. When they don’t have money to spend because they are struggling to cope on pay grades that mock their efforts, less money goes through the system and the economy stutters.

“Cut tax” – “So we’ve given an average income tax cut of £700 to 25 million people, taking 2.7 million people out of tax altogether”. Remove the £100,000-per-year tax cut for those with extremely high incomes and this average drops dramatically. Add in the extra money people are having to spend because of cuts or caps on in-work and unemployment benefits and people like you are £2,000 worse-off per year.

“Cap welfare” – “So we’ve capped welfare – no out-of-work household can now claim more than the average family earns in a week”. The welfare cap is a sensible idea done in a silly way. If it had been set at an average family’s income – just over £31,000 per year – it would be fair, but almost nobody would have been affected, so the Tories set it at £26,000 per year, purely to knock more people off-benefit and show that it worked – and they thought we wouldn’t notice. Silly Tories!

“Control immigration” – at last we come to something that is relevant to the European election! – “So we’ve taken all the action we can under the current EU agreements to fix our immigration system and limited migrants’ access to benefits”. In fact – as noted in this blog previously – very few of the actions taken by the current UK (not European) government are new. The limited access to benefits was enshrined in UK law already, but they don’t want you to know that.

“Cut the cost of Europe” – “So we’ve cut the EU budget, saving British taxpayers £8.15 billion”. Impossible without the co-operation of other EU member states. They are claiming credit for something that would not have happened if other EU countries had not also wanted it. Naughty Tories!

“No to British taxpayers bailing out the Euro” – “So we’ve taken the UK out of Eurozone bailouts”. This is the only measure in the entire flier that anyone in their right mind can support. The UK was never part of the Euro so there was never any reason for us to support it financially. Any other UK political party would have taken the same action so this is no credit to the Tories.

Finally: “Defend Britain’s interests” – “So we vetoed a new EU Fiscal Treaty because it didn’t guarantee a level playing field for British business”. This relates back to the cover boast about “Real change in Europe”. David Cameron made a laughing-stock of both himself and the United Kingdom with his silly veto, because the other 26 countries involved in the treaty simply carried on regardless, leaving us out in the cold. That isn’t “Real change in Europe”; that’s really being shut out of EU decisions.

This Tory leaflet is an insult to your intelligence. It claims success where the Tories have failed, and calls for you to support people who have intentionally inflicted harm upon you.

And you’ll notice there’s no mention of the elephant in the room: The Conservative Party supports the Transatlantic Trade and Investment Partnership that will push conditions of employment down to a lowest-common-denominator level that will devastate workers’ health and livelihoods while also locking the privatisation of the National Health Service into an agreement that will make it an international criminal offence to reverse the changes. Here in Wales, many of us rely on cross-border treatment and this will hit us hard.

Anyone supporting the Conservatives on the basis of this flier would have to be ignorant or insane.

One last thing: Minutes after the Tory flier arrived, I went out to my car and found a plastic bag filled with what appeared to be excrement had been left on the windscreen. I can’t blame this on the leafleters (although local Tories certainly know who I am and what my car looks like) but it did make me question the quality of their local campaign.

Is this a new kind of smear tactic?

Follow me on Twitter: @MidWalesMike

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Cometh the hour, time for a party

05 Monday May 2014

Posted by Mike Sivier in Satire

≈ 28 Comments

Tags

anti, aristocracy, aristocrat, benefit, business, co-operative, Coalition, companies, company, condition, corporate, corporation, corporatist, derogatory, divisive, election, employee, employment, Europe, firm, government, health, holiday, ill, incentive, inclusive, income floor, International Workers Day, investment, living wage, low-wage, Mandatory Work Activity, Mike Sivier, mikesivier, Nobby Fulsom, Parliament, partnership, pay, politics, profit, rights, safety, satire, say, share, sick, sick pay, tax, top down reorganisation, trade, transatlantic, TTIP, Underpaid Peoples Independence Party, unemploy, Unite, UPIP, Work Programme, Workfare


140505UPIP

A new political party has been launched – on International Workers’ Day – to represent the interests of people whose opportunities in life have been restricted because they earn low wages.

The Underpaid People’s Independence Party – UPIP – will campaign for better pay, better rights and a better say on behalf of all those who currently earn less than they need in order to pay their own way.

The new party has announced several policies already:

  • A living wage for every working person, ensuring that the overburdened benefit system does not subsidise greedy corporations
  • A guaranteed ‘income floor’ for all British citizens, ensuring that those who do not work because of illness or unemployment are able to live with dignity
  • The guarantee of employee benefits including sick pay, holiday rights and both lower and upper limits on the number of hours worked
  • Strengthened – and rigorously-enforced – health and safety regulations for all workplaces, to limit the number of workplace-related illnesses and disabilities
  • An end to corrupt ‘workfare’, ‘work programme’ or ‘mandatory work activity’ schemes that allow governments to collude with corporations in forcing citizens to work for no payment other than benefits that are subsidised by other working people
  • Tax incentives to encourage all companies to transform into co-operatives, with responsibilities and profits shared among the entire workforce

UPIP founder Nobby Fulsom, a former mineworker, said Britain’s hardworking poor had suffered for too long under neoliberal profiteers, and the time had come for a party they could all enjoy.

“I have stayed underground for too long; now is the time for working people to stand tall,” he said.

But he admitted: “It is too late for us to field any candidates in the European election.

“If we could, we would be opposing the Transatlantic Trade and Investment Partnership that would push workers on both sides of the Atlantic into ever-worsening conditions of employment.

“Europe should be pushing for an agreement that will guarantee the best possible conditions for all workers. The fact that the EU doesn’t seem interested in supporting its constituents poses questions about its own role, and that is why we support a top-down reorganisation of the European Union, with authority granted to nobody unless they can prove they started their careers at the lowest level and worked their way up, rather than just walking in from a position of privilege.”

Mr Fulsom said it was not true that members of UPIP had been posting anti-corporatist Tweets on the internet, nor had they been targeting members of the aristocracy with derogatory remarks.

“UPIP is an inclusive party,” he said. We believe in uniting people – not in the divisive rhetoric of the Coalition government or certain minority parties with similar initials to our own.

“Any corporate executive who is willing to turn his organisation into a co-operative is welcome to join us, as is anyone from a family of wealth who accepts that the people who made that cash for them are entitled to the opportunities they and their forebears enjoyed.”

He added: “We don’t want much, but what we want is fair – for everybody, not just those with a private education and independent wealth.”

Undoubtedly, UPIP will have a great deal to say about the current election campaign and the future direction of British politics.

Follow me on Twitter: @MidWalesMike

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The Tories have run out of momentum, ideas and even arguments

25 Friday Apr 2014

Posted by Mike Sivier in Business, Conservative Party, Economy, Education, Environment, Labour Party, Media, Politics, Tax, UK, Utility firms

≈ 11 Comments

Tags

bank, banker, charge, Co-op, company, Conservative, crash, Credit Crunch, Ed Miliband, edict, election, energy, Europe, finances, firm, Fraser Nelson, free enterprise, general, George Osborne, government, green, ideological, ideology, inequality, interference, investment, Labour, lloyds, long term economic plan, market, neoliberal, predator, price freeze, privatisation, public, purse, raid, recovery, regulation, regulator, Reverend Flowers, rip-off, Scandinavia, Spain, Square Mile, teacher, The North, The Spectator, Tories, Tory, Tory Democrat


Old Labour: Oversaw the longest periods of economic growth in British history and DIDN'T cause the biggest crash (that was neoliberalism, beloved of Conservatives). There is nothing wrong with it.

Old Labour: Oversaw the longest periods of economic growth in British history and DIDN’T cause the biggest crash (that was neoliberalism, beloved of Conservatives). There is nothing wrong with it.

Dear old Fraser Nelson has been trying to generate some momentum against Ed Miliband’s plans for a Labour government.

But, bless ‘im, not only did he hit the nail on the head when he wrote (in The Spectator), “Tories seem to have lost interest in ideas”, he might just as well have been talking about the Tory press because – other than the parts in which he praises Miliband for his political acumen and perception, Fraser has nothing new to say at all.

“Why, if he is such a joke, has Labour led in the opinion polls for three years solidly? And why has he been the bookmakers’ favourite to win the next general election for even longer?” These are the questions Fraser asks, and then goes on to answer in the most glowing terms possible.

“His agenda is clear, radical, populist and … popular. His speeches are intellectually coherent, and clearly address the new problems of inequality,” writes Fraser.

“His analysis is potent because he correctly identifies the problem. There is [a] major problem with the recovery, he says, in that the spoils are going to the richest, and it’s time to act… George Osborne does not talk about this. He prefers to avoid the wider issue of inequality. This leaves one of the most interesting debates of our times entirely open to Miliband.”

All of the above is a gift to the Labour leadership. Fraser has scored a huge own-goal by admitting the Labour leader – far from being “a joke”, has correctly identified the problem and can say what he likes because the Tories won’t even discuss it!

Worse still (for Fraser), he seems to think that telling us Ed Miliband is mining Labour’s past policies to get future success will put us off.

Hasn’t anybody told Fraser – yet – that it is current neoliberal policies, as practised by both Labour and the Tories, that caused the crash of 2007 onwards? With that as our context, why not go back and resurrect policies that offer a plausible alternative?

As a Conservative, Fraser should appreciate the irony that it is Labour who are now looking at the past to create the future.

“The philosophical underpinning is rehabilitated: that the free enterprise system does not work, and should be put under greater government control,” writes Fraser. “That companies, bankers and markets have buggered up Britain — and it’s time for people, through Big Government, to fight back.” Who could argue with that?

Then Fraser goes into some of those policies, like the plan to revive the 50 per cent tax rate. “But Miliband isn’t taxing for revenue. He’s taxing for the applause of the electorate and he calculates that the more he beats up on bankers and the rich, the louder the masses will cheer.” The answer to that is yes! What’s wrong with that? The Coalition came into office on a ticket that said bankers would pay for the damage they caused, and yet bankers have been among the principal beneficiaries of the ongoing raid on the public finances that the Coalition calls its “long-term economic plan”. In the face of dishonesty on that scale, Fraser should be more surprised that the North hasn’t invaded the Square Mile and strung anybody in a suit up on a lamppost – yet.

Next up, Fraser tries to attack Miliband’s proposed revival of a Kinnock plan for a state-run ‘British Investment Bank’ and two new high street bank chains. To this writer, the prospect of two new, state-run and regulated, banks is a brilliant idea! No more rip-off charges for services that should be free! Investment in growth, rather than short-term profit! And all run the way banks should be run – prudently and with the interests of the customer – rather than the shareholder – at heart. How can Fraser (bless ‘im) argue with that?

Argue he does. He writes: “As Simon Walker, head of the Institute of Directors, put it: ‘The last time the government told a bank what to do, Lloyds was ordered to sell branches to the Co-op’s Reverend Flowers. And we all know how that ended.’ Wrong. European regulators ordered the government (then principle shareholder in Lloyds) to sell the branches, and it happened on the Coalition government’s watch. In fact, George Osborne welcomed the deal. That’s an argument against Conservative mismanagement.

Fraser goes on to claim that Miliband doesn’t care how his bank project will work out – he just wants it done. He’s on an ideological crusade. Again, this provokes comparisons with the Tories that are (for the Tories) extremely uncomfortable. The Tories (and their little yellow Tory Democrat friends) have spent the last four years on an ideological crusade that has robbed the poorest people in the UK of almost everything they have, and are now starting to attack people who are better off (but still not posh enough) – they can hardly criticise Labour for having an ideology of its own.

The line about green policies which cost nine jobs for every four created – in Spain – is risible. Fraser has chosen a country where green policies have not worked well. How are they managing in Scandinavia?

Fraser says Labour’s energy price freeze “magically” makes good a 1983 pledge for everyone to afford adequate heat and light at home – without commenting on the fact that energy companies have been ripping us all off for many years and failing to invest in the future of power generation; they are an example of the worst kind of industrial privatisation.

Fraser says Labour has revived a 1983 demand for “a supply of appropriately qualified teachers” as though that is a bad idea (it isn’t. Bringing in unqualified people to act as teachers in Michael Gove’s silly ‘free schools’ sandpit was the bad idea). Note he says Labour wants “union-approved” qualified teachers – depending on mention of the unions to get a knee-jerk reaction from his readers, no doubt.

Fraser says Miliband attacks “predator” companies – moneylenders who offer short-term loans; people who make fixed-odds betting machines; landowners who stand accused of hoarding and thwarting housebuilding. “When Miliband talks about the future, he says very little about what he’d do with government. He talks about what he’d do to British business. All this amounts to a blitz of regulation, edicts and interference,” he writes.

This is to suggest that “regulation” is a dirty word – a synonym for “interference”. Let’s help Fraser out by suggesting a word he can use instead of “regulation” or “interference”.

That word is “help” – and it exemplifies what regulation is, in fact, about – helping companies to provide the best service possible, with the least possible corruption or profiteering, to ensure that customers get what they want and are happy to come back – boosting prosperity for everybody.

Substitute that word for the others and Fraser’s remaining rhetoric looks very different:

“All this amounts to a blitz of help” evokes the response, about time too!

“[Tristram] Hunt does not pretend that help at this level is being attempted in any free country” begs the question, why not?

While Fraser may have set out to write an assassination piece on Ed Miliband’s Labour, there can be no doubt that he ended up doing the exact opposite. It wasn’t his intention – look at his final few lines: “Miliband is bold enough to think that, in a country midway through the worst recovery in history, there may be a market for all this now. And most terrifyingly of all, he might be right.”

This botched attempt at scaremongering only exposes right-wing ideology for what it is: Out-argued, outclassed and badly out-of-step with the thoughts of the British people.

Follow me on Twitter: @MidWalesMike

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Labour must turn and fight now – or give up its electoral hopes altogether

24 Monday Mar 2014

Posted by Mike Sivier in Labour Party, Politics, UK

≈ 25 Comments

Tags

adviser, apathy, argument, backbencher, backhander, Bank of England, BBC, benefit, cap, carnage, Coalition, concede, Conservative, cut, Dan Hodges, David Miliband, deselect, difference, disabled, disillusion, Ed Balls, Ed Miliband, elect, frame, George Osborne, Gordon Brown, Guardian, hidden agenda, investment, John Mann, Labour, lobby, manifesto, Marxist, Mike Sivier, mikesivier, miniscule, Nazi, neoliberal, New Labour, Opposition, oxford, partnership, pensioner, perception, policies, policy, poor, PPE, public, Rachel Reeves, Red Tory, reference, senior citizen, sick, small, social security, special, spin, squeezed middle, surplus, Telegraph, thinktank, Tony Blair, Tories, Tory, trade, transatlantic, Tristram Hunt, TTIP, Vox Political, welfare, yvette cooper


Struggling to make an impact: Ed Miliband must reject the Tory Party's narrative about the need for austerity and bring forward a vision for the future that really does make us 'One Nation' again, rather than hanging on David Cameron's neoliberal coat-tails, as many former Labour voters believe.

Struggling to make an impact: Ed Miliband must reject the Tory Party’s narrative about the need for austerity and bring forward a vision for the future that really does make us ‘One Nation’ again, rather than hanging on David Cameron’s neoliberal coat-tails, as many former Labour voters believe.

The political debate is all about the Labour Party again today – as it has been since the Budget.

The newspapers and websites are full of advice for the party, which is now clearly seen to be struggling to gain any kind of a foothold with electors who have become disillusioned at what might best be called the Party of Very Little Opposition.

Labour “must adopt new principles” according to an alliance of thinktanks and party intellectuals who have written to The Guardian; Ed Miliband has been told “don’t play safe” with the party’s manifesto according to an article on the same paper’s site.

The BBC News site has words from left-wing MP John Mann, calling on his party leader to stop trying to be “too clever” and be “much clearer” in setting out his policies.

We can probably discount the Telegraph article by Dan Hodges, claiming that Labour is “closed for business”. It plays to right-wing readers’ prejudices just a little too much.

Will Ed pay any attention to these pleas? Evidence suggests he will not.

I should clarify from the outset that, as a Labour member, I want the Party to win in 2015 (and also to gain the lion’s share of the vote in May’s European elections).

But Miliband seems to be living in a world of his own, insulated from the rest of the Labour Party – not to mention supporters of Labour ideals who are not members – by a small group of (not-so-special) advisers who, it’s claimed, intercept any decent ideas before they get to the party leader and spin them until they turn to drivel. Whether this is true or not seems immaterial as this is the perception of the general public.

And perception is everything.

As I write this article I have just received a comment stating that “Miliband’s strategy for the next election seems to be a) to accept the Tory frame of reference for any given argument and b) to then concede the field of battle on that issue, whatever it is, without a shot being fired.” This is a common complaint, and Labour has no answer to it.

Why do Miliband, Balls, Tristram Hunt (notably), Rachel Reeves (lamentably) and all the other Labour frontbenchers blithely accept the Coalition’s terms of reference on any issue, against the wishes of their own backbenchers, their party as a whole and the public at large?

Are they really just a gang of greedy moneygrubbers, determined to screw the country for whatever they can get? That in itself would be a betrayal of Labour Party ideals and their constituency parties should deselect them if members believed that to be the case for one moment.

Are they a gang of neoliberals, their political philosophy so close to that of the Conservatives that you can’t get a credit card between them? This rings threateningly true in the cases of Oxford PPE graduats Ed Balls and Yvette Cooper, ex-Bank of England employee Rachel Reeves and Tristram Hunt. But Ed Miliband is (famously) the son of a Marxist. He, above all, should know better.

The trouble is, David Miliband is the son of the same Marxist and he was as much a part of the neoliberal New Labour Red Tory deception as Tony Blair and Gordon Brown.

Oh look – another comment has just arrived. “More people don’t bother to vote because they feel that we as a people have moved on and all we really want is people who will represent us honestly, by majority and with no hidden agendas, backhanders or lobbyists pulling the strings. I don’t see any evidence that the present government or the Labour Party are capable or willing to do just that… They should have the courage to change and become the voice of the people.”

Become the voice of the people. The meaning is clear – Labour is not currently representing anybody at all.

Is this true? Let’s look at some of the other comments on my (left-leaning, let’s not forget) blog. These are from people who are generally sympathetic to Socialism and who should, therefore, see Labour as the natural home of their vote. What do they say?

“[Is it] any wonder [that] 1. People don’t vote because they are seen as “all the bloody same”? and 2. The perceived differences have become so minuscule?”

“Until Labour wakes up and realises it is the welfare cuts that are a major concern to most of us and to anyone who has a conscience, they will lose the next election due to apathy.”

“Labour have to do something different to what they have up to now but they don’t seem to want to. Are they scared of being in government over a country in the state it is?”

“Labour have had four years to do something – anything – to fight against the welfare cuts, and to help the people they are supposed to be the party for! They’ve really done nothing when all is said and done.”

If Ed Miliband was reading this, I would be asking if he was getting the message yet (are you, Ed?) and what he proposes to do about it. You think not? Let’s have some more comments from people who should be supporting Labour – I’ve got plenty of them!

“There has been absolutely no fight in this opposition and I am ashamed of them.”

“People need a reason to apply their votes to Labour and Miliband-Balls are not providing them with one. They are sleepwalking into another hung Parliament and a very real risk of the Tories teaming up with UKIP. Then we’ll really see Nazism grip this country.”

“The would-be voters demand change and need bold new policies to blunt the Tory cutters. If the Labour Party cannot come up with policies which are radical then they don’t deserve to be in power at the next election, or ever.”

“Ed Balls worries me because he seems intent on copycatting Osborne. For example Osborne says he will run a surplus by the end of the next Parliament and Balls promises the same. Osborne say he will be introducing a Benefit Cap on social security spending on working age benefits (which could have devastating effects and lead to real terms cuts in benefits for years on end) and Balls says that Labour will vote with the Coalition to introduce it.”

“Surely we need some clear red water between Labour and the Tories? Surely Labour needs to differentiate itself more from the policies of the Coalition?”

“I sent an email to the Labour Party asking for its policy on TTIP (the rightly-feared Transatlantic Trade and Investment Partnership that will force employment standards down to third-world levels, or below), amongst other things. They were decidedly equivocal and I felt no reassurance at all. I think it’s about we faced facts, Labour aren’t being coy in a pre-election year to avoid frightening the horses, they really are just another pack of neoliberals.”

This is how left-wing voters (and the squeezed-middle waverers to whom Ed Miliband keeps trying to pander) see the modern Labour Party: Carbon-copy Tories with no fresh ideas who aren’t worth the effort of voting.

If any of Ed’s shadow cabinet is okay with that description, he needs to sack them and bring in someone with a clue. And he needed to do it last year.

If the Conservatives win in 2015, it seems clear that responsibility will lie as much with Labour’s failure to provide any clearly-visible alternative.

We have already seen carnage inflicted on the poor, the sick and disabled, and a Conservative-only government (or in collaboration withUKIP) would increase that bloodshed tenfold (senior citizens take note: the bribe you were given last week was a trick and if you vote Conservative, many of you will not live to rectify your error at another election).

Unless Ed Miliband sorts out his party – pronto – that blood will be on his hands as well, and the people will not forgive him.

Note that I did not say they won’t forgive Labour. I said they won’t forgive Ed Miliband.

Words cannot describe the way people feel at what has been done to them by the Coalition. If Labour reveals even the slightest element of complicity, I wouldn’t give a farthing for Miliband’s safety.

That goes for the rest of the shadow cabinet too.

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Miliband’s pledge on TTIP: ‘Labour will protect the NHS’

13 Thursday Mar 2014

Posted by Mike Sivier in Conservative Party, Democracy, European Union, Health, Labour Party, Law, People, Politics, UK, USA

≈ 73 Comments

Tags

andy burnham, BBC, Conservative, David Cameron, dispute, Ed Miliband, EU, european union, government, health, investment, investor, ISDS, Labour, MEP, Mike Sivier, mikesivier, national, NHS, partnership, people, politics, protect, service, settlement, state, Tories, Tory, trade, TTIP. Transatlantic, UK, USA, Vox Political


140115TTIP

This is critically important for the general election next year, because timing is everything.

If any of you were in any doubt about Labour’s position on the Transatlantic Trade and Investment Partnership between the USA and the EU, this Tweet from Andy Burnham should clarify:

“Crucial commitment from @Ed_Miliband today: ‘The next Labour government will work to make sure the NHS is protected from EU competition law’.”

This is important because the Investor State Dispute Settlement (ISDS) part of the agreement would allow any foreign company operating in the UK to make a claim against the government for loss of future profits resulting from any regulatory action by the government, such as new legislation. Such claims would be considered by an unelected, unaccountable tribunal composed of three corporate lawyers whose decisions are likely to favour the corporations and would override national laws – and it is widely agreed that the TTIP will be used by our Conservative-led government as a means of permanently locking-in its detrimental changes to the National Health Service.

Labour’s MEPs have already confirmed that they have no intention of supporting this part of the trade agreement; now we have confirmation that only a Labour government in the UK would protect the NHS from the irreparable harm being planned by the Conservative Party.

It is ironic that, if you go to the BBC News website and find their ‘politics’ page, you will see an article entitled Labour makes no sense on Europe, says David Cameron.

In fact, Labour is talking far more sense – in terms of protecting the people of this country – than the Conservatives. Leaving the EU won’t stop us having to conform with European standards, if we want to trade with those countries; and any decision to stop immigration will be met, undoubtedly, with the expulsion of our own 2.5 million expats from the EU countries where they have settled. We will be more crowded, not less.

If the British people want to vote on a way to stop European laws from harming us, then we need look no further than the 2015 general election.

Masochists can vote ‘Conservative’.

You know the sensible option.

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Flood defence lies have put lives at risk

08 Saturday Feb 2014

Posted by Mike Sivier in Conservative Party, Flood Defence, Liberal Democrats, People, Politics, Public services, UK

≈ 15 Comments

Tags

BBC, Coalition, Conservative, danger, death, Democrat, flood defence, government, Hooray Henry, investment, Lib Dem, Liberal, life, Mike Sivier, mikesivier, mislead, people, politics, Somerset Levels, Tories, Tory, Treasury, uk statistics authority, Vox Political


140208floods

The BBC has actually dared to run a story criticising the Conservative-Liberal Democrat Coalition government! Perhaps its editors are worried that the social media are getting a better reputation for news reporting.

It seems the UK Statistics Authority has attacked the Treasury for giving a “false impression” of government investment in areas like flood defences.

The government chart, released with the Autumn Statement, appeared to show an even spread across sectors, but used a ‘logarithmic’ scale – with gaps between £1 million, £10 million, £100 million, £1 billion and so on represented by increments of the same size.

The scaling appeared to show flood defences getting at least half as much funding as transport and energy – the projects that received the most money.

The Treasury's 'logarhythmic' chart, apparently showing a relatively even spread of funding.

The Treasury’s ‘logarithmic’ chart, apparently showing a relatively even spread of funding.

In fact, would you like to know the proportion of money actually being spent on flood defences, compared with energy infrastructure?

Two per cent.

The UK Statistics Authority's more representative chart, showing that flood defence (third from left) receives two per cent of the funding that goes to energy (second from left).

The UK Statistics Authority’s more representative chart, showing that flood defence (third from left) receives two per cent of the funding that goes to energy (second from left).

Last Wednesday the same BBC that broke this story told us that severe flood warnings – signifying a danger to life” – had been issued for part of the Somerset Levels.

People were in danger of death because the government had neglected anti-flooding plans.

This year the government is spending £60 million less on flood defence than in Labour’s last year of office (2009-10) – and that’s after factoring in new spending to combat the current deluge.

“The government has denied attempting to mislead the public,” according to the BBC report.

Well it would, wouldn’t it? But how often has it done anything else?

Does the Coalition not tell us every day that we are better off than before – when we know the pounds in our pocket buy less and less, the longer they are in office?

Is it not telling us that more of us are in work, when we can unpick DWP press releases to reveal the tawdry tricks they have played to create those figures?

Did it not tell us the National Health Service in England would be safe – and then ruin it, especially with the current drive to maim accident and emergency departments?

How much longer can we afford this cavalier gang of Hooray Henrys, playing fast and loose with the facts?

They couldn’t care less if their irresponsibility causes somebody’s death.

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Public consultation on anti-democratic trade deal – a sham?

22 Wednesday Jan 2014

Posted by Mike Sivier in Business, Corruption, Democracy, European Union, Law, People, Politics, Public services, UK, USA

≈ 21 Comments

Tags

agreement, anti, any willing provider, arbitrator, CCG, code of conduct, consult, corporation, David Cameron, democratic, dispute, EU, European Commission, free trade, G8, Health and Social Care Act, healthcare, investment, investor, ISDS, Karel De Gucht, loophole, Mike Sivier, mikesivier, National Health Service, NHS, OpenDemocracy, partnership, people, politics, private, protection, public, public interest, regulate, regulation, section 75, settlement, sham, state, trade, transatlantic, transnational, TTIP, US, Vox Political


140115TTIP

The European Union’s trade commissioner, Karel De Gucht, reckons he’s going to consult the public over the controversional Transatlantic Trade and Investment Partnership – the EU/US free trade agreement.

He says he is determined to strike the right balance between protecting EU firms’ investment interests and upholding governments’ right to regulate in the public interest.

Bear in mind, this is for the investment part of the deal, which includes investment protection and the red-hot disputed subject of investor-to-state dispute settlement, where firms would be allowed to sue governments if regulations got in the way of their profits, as the deal currently stands.

A proposed text for the investment part of the talks will be published in early March.

“Governments must always be free to regulate so they can protect people and the environment. But they must also find the right balance and treat investors fairly, so they can attract investment,” said Mr De Gucht.

“Some existing arrangements have caused problems in practice, allowing companies to exploit loopholes where the legal text has been vague.

“I know some people in Europe have genuine concerns about this part of the EU-US deal. Now I want them to have their say… TTIP will firmly uphold EU member states’ right to regulate in the public interest.”

Do you believe him?

The European Commission wants to use TTIP to improve provisions already in place that protect investments by EU-based companies in the US, and vice versa.

In practice, we are told, there would be a require for this protection to defer to states’ right to regulate in the public’s interest.

There would also be new and improved rules, including a code of conduct, to ensure arbitrators are chosen fairly and act impartially, and to open up their proceedings to the public. This comes after significant unrest about arbitrators being chosen exclusively from big business, with a natural bias towards the interests of their employers.

It seems “no other part of the negotiations is affected by this public consultation and the TTIP negotiations will continue as planned”.

Is this the only part of the deal that affects the public interest, then?

I don’t know. The TTIP negotiations have been shrouded in mystery since they began last June. Can anyone outside the talks – and those taking part are sworn to secrecy – say they are an expert?

Since the talks began, the Commission has held three rounds of consultations with stakeholders – big businesses operating in both Europe and the USA “to gather the views and wishes of the public and interested parties across Europe”, it says here.

“The Commission has also done public consultations before the start of the TTIP negotiations.” Have you taken part in any such negotiations?

The rationale behind the talks is that the EU is the world’s largest foreign direct investor and the biggest recipient of foreign direct investment (FDI) in the world, so it must ensure that EU companies are well-protected when they invest in countries outside the EU. This involves reciprocal agreements to protect foreign companies.

“Investment is essential for growth, for jobs and for creating the wealth that pays for our public services, our schools, our hospitals and our pensions,” the argument goes. But who gets the wealth? The people who work to make it – whose living and working conditions are likely to be reduced dramatically to lowest-common-denominator terms? Or the company bosses who are ironing out the terms of this agreement while most of us are being told to look the other way?

Let’s look at an example of this in action. According to OpenDemocracy.net, the TTIP talks “could see England’s NHS tied into a privatised model semi-permanently.

“A US/EU Free Trade Agreement… will ‘dismantle hurdles to trade in goods, services and investment’ and ‘make regulations and standards compatible on both sides’.

“The EU has already stated that ‘certain “sensitive” sectors will require more negotiation’ but that ‘no sectors would be excluded from the deal completely’. David Cameron has stated such an agreement is one of his key aims during the UK’s leadership of the G8 group this year.

“The Health and Social Care Act’s Section 75 is an example of legislation guided by the principles of this overarching trade agreement. It breaks the NHS up into little parcels (the CCGs) that must offer their contracts to any willing provider. If a private provider feels they have been unfairly excluded from a contract, they can use Section 75 to take legal action… This legislation may have been written specifically to pave the way for international free trade involving the NHS.

“The idea [is] that the Health and Social Care Act was developed to allow foreign transnational corporations to profit from NHS privatisation.

“Even worse is the idea that, once passed, an international trade agreement will leave us irreversibly committed to privatising the NHS. Even with a change of government and the repeal of the Act, we’d be facing the insurmountable obstacle of international competition laws.”

The article demands that the government must be clear with the public – will our health service be opened to multinational business as part of this trade agreement?

Leftie politics sheet the New Statesman agrees: “This will open the floodgates for private healthcare providers that have made dizzying levels of profits from healthcare in the United States, while lobbying furiously against any attempts by President Obama to provide free care for people living in poverty. With the help of the Conservative government and soon the EU, these companies will soon be let loose, freed to do the same in Britain.

“The agreement will provide a legal heavy hand to the corporations seeking to grind down the health service. It will act as a Transatlantic bridge between the Health and Social Care Act in the UK, which forces the NHS to compete for contracts, and the private companies in the US eager to take it on for their own gain.

“It gives the act international legal backing and sets the whole shift to privatisation in stone because once it is made law, it will be irreversible.

“Once these ISDS tools are in place, lucrative contracts will be underwritten, even where a private provider is failing patients and the CCG wants a contract cancelled. In this case, the provider will be able to sue a CCG for future loss of earnings, causing the loss of vast sums of taxpayer money on legal and administrative costs.

“Even more worrying is that, once the TTIP is enacted, repealing the Health and Social Care Act in the UK will become almost impossible.”

The public has the democratic right to contest the agreement, and fight for a health service that protects them, the Statesman says, “but how can they when MEPs do nothing to inform opinion or gather support back home? The NHS is in a very precarious position. It seems that soon, with the help of Brussels, its fate will be sealed.”

Would you like your MEP to speak up for you – in other words, to do what he or she was elected to do and actually represent your interests? Then why not get in touch and ask why they’ve been so quiet about this for so long? It’s easy – you can find their contact details here.

The EU has released a ‘factsheet’ summarising how it would like you to understand changes to existing investment protection rules and the ISDS system.

The previous Vox Political article about TTIP is here.

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Divisions in Coalition as MPs demand independent inquiry on poverty

14 Tuesday Jan 2014

Posted by Mike Sivier in Bedroom Tax, Benefits, Children, Cost of living, Democracy, Economy, Employment, European Union, Food Banks, Health, Housing, People, Politics, Poverty, Public services, Tax, UK, Workfare

≈ 60 Comments

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130617childpoverty

Calls for a ‘commission of inquiry’ into the impact of the government’s changes to social security entitlements on poverty have won overwhelming support from Parliament.

The motion by Labour’s Michael Meacher was passed with a massive majority of 123 votes; only two people – David Nuttall and Jacob Rees-Mogg – voted against it.

The debate enjoyed cross-party support, having been secured by Mr Meacher with Sir Peter Bottomley (Conservative) and John Hemming (Liberal Democrat).

Introducing the motion, Mr Meacher said: “It is clear that something terrible is happening across the face of Britain. We are seeing the return of absolute poverty, which has not existed in this country since the Victorian age more than a century ago. Absolute poverty is when people do not have the money to pay for even their most basic needs.”

He said the evidence was all around:

  • There are at least 345 food banks and, according to the Trussell Trust, emergency food aid was given to 350,000 households for at least three days in the last year.
  • The Red Cross is setting up centres to help the destitute, just as it does in developing countries.
  • Even in prosperous areas like London, more than a quarter of the population is living in poverty.
  • According to the Joseph Rowntree Foundation, for the first time, the number of people in working families who are living in poverty, at 6.7 million, is greater than the number of people in workless and retired families who are living in poverty, at 6.3 million.
  • Child poverty will rise from 2.5 million to 3.2 million during this Parliament, around 24 per cent of children in the UK. By 2020, if the rise is not stopped, it will increase to four million – around 30 per cent of children in the UK.
  • The use of sanctions depriving people of all their benefits for several weeks at a time, had increased by 126 per cent since 2010 and 120 disabled people who had been receiving jobseeker’s allowance had been given a three-year fixed duration sanction in the previous year.
  • There are now more than 2,000 families who have been placed in emergency bed-and-breakfast accommodation after losing their homes.
  • The per cent rise in the overall homelessness figures last year included nearly 9,000 families with children, which is the equivalent of one family losing their home every 15 minutes.
  • A third of families spent less than £20 a week on food and that the average spend on food per person per day was precisely £2.10. That is a third less than those families were able to afford three months before that.
  • The proportion of households that had to make debt repayments of more than £40 a week had doubled and the average level of debt was £2,250.
  • A third of families had council tax debt.
  • 2.7 million people had lost out through the Government’s changes to council tax benefit – many of them disabled people, veterans and some of the most vulnerable in our communities.
  • Households were having to spend 16 per cent more on gas and electricity.
  • There are 2.5 million people who have been unemployed for the best part of two years, and there were 562,000 vacancies when the debate took place (Monday), so four out of five of those who are unemployed simply cannot get a job whatever they do.
  • Cuts to local authorities mean many home care visits are limited to 15 minutes.
  • The 10 per cent of local authorities that are the most deprived in the country face cuts six times higher than those faced by the 10 per cent that are the most affluent.
  • 60 per cent of benefit cuts fall on those who are in work.

Mr Meacher said the biggest cause of absolute poverty was the huge rise in sanctioning, often for trivial reasons such as turning up five minutes late for a job interview or the Work Programme:

  • A dyslexic person lost his Jobseekers Allowance because his condition meant that in one fortnightly period he applied for nine jobs, not 10. He was trying to pay his way and already had work, but it provided only an extremely low income.
  • The jobcentre didn’t record that a claimant had informed them that he was in hospital when he was due to attend an appointment and he was sanctioned.
  • A claimant went to a job interview instead of signing on at the jobcentre because the appointments clashed – and was sanctioned.
  • A claimant had to look after their mother who was severely disabled and very ill – and was sanctioned.
  • A Job Centre sent the letter informing a claimant of an interview to their previous address, despite having been told about the move. The claimant was sanctioned.
  • A claimant was refused a job because she was in a women’s refuge, fleeing domestic violence and in the process of relocating, but I was still sanctioned.

Mr Meacher also quoted what he called a classic: “I didn’t do enough to find work in between finding work and starting the job.”

The latest DWP figures suggest that more than one million people have been sanctioned in the past 15 months and deprived of all benefit and all income. “Given that the penalties are out of all proportion to the triviality of many of the infringements, and given that, as I have said, four out of five people cannot get a job whatever they do, the use of sanctioning on this scale, with the result of utter destitution, is — one struggles for words — brutalising and profoundly unjust,” said Mr Meacher.

Other reasons for the rise in absolute poverty included:

  • Delays in benefit payments.
  • The fact that it is impossible for many poor and vulnerable people to comply with new rules – for example a jobseeker who asked to downsize to a smaller flat who was told he must pay two weeks’ full rent upfront before getting housing benefit. He does not have the funds to do so and is stuck in a situation where his benefits will not cover his outgoings due to the Bedroom Tax.
  • The Bedroom Tax, which applies to around 667,000 households, and two-thirds of those affected are disabled. More than 90 per cent of those affected do not have smaller social housing to move into.
  • The Benefit Cap, imposed on a further 33,000 households.
  • Mistakes by the authorities; up to 40,000 working-age tenants in social housing may have been improperly subjected to the Bedroom Tax because of DWP error (although Iain Duncan Smith claims a maximum of 5,000).

Mr Meacher said: “The Chancellor’s policy of keeping 2.5 million people unemployed makes it impossible for them to find work, even if there were employers who would be willing to take them, and the 40 per cent success rate of appeals shows how unfair the whole process is.”

Responding to a comment from David TC Davies (Conservative) that those who are not looking for work must realise there will be consequences, particularly when a million people have been able to come to the UK from eastern Europe and find work, Mr Meacher said, “Those who come to this country are more likely to be employed and take out less in benefits than many of the indigenous population.”

He asked: “Is all this brutality towards the poor really necessary? Is there any justification in intensifying the misery, as the Chancellor clearly intends, by winding up the social fund and, particularly, by imposing another £25 billion of cuts in the next Parliament, half of that from working-age benefits?

“After £80 billion of public spending cuts, with about £23 billion of cuts in this Parliament so far, the deficit has been reduced only at a glacial pace, from £118 billion in 2011 to £115 billion in 2012 and £111 billion in 2013. Frankly, the Chancellor is like one of those first world war generals who urged his men forward, over the top, in order to recover 300 yards of bombed-out ground, but lost 20,000 men in the process. How can it be justified to carry on imposing abject and unnecessary destitution on such a huge scale when the benefits in terms of deficit reduction are so small as to be almost derisory?”

Suggested alternatives to the punitive austerity programme of cuts came thick and fast during the debate. Challenged to explain what Labour’s Front Bench meant by saying they would be tougher on welfare than the Tories, Mr Meacher said: “As the shadow Chancellor has made clear on many occasions, is that we need public investment. We need to get jobs and growth. That is the alternative way: public investment in jobs, industry, infrastructure and exports to grow the real economy, not the financial froth, because that would cut the deficit far faster than the Chancellor’s beloved austerity.”

He asked: “How about the ultra-rich — Britain’s 1,000 richest citizens — contributing just a bit? Their current remuneration — I am talking about a fraction of the top 1 per cent — is £86,000 a week, which is 185 times the average wage. They received a windfall of more than £2,000 a week from the five per cent cut in the higher rate of income tax, and their wealth was recently estimated by The Sunday Times at nearly half a trillion pounds. Let us remember that we are talking about 1,000 people. Their asset gains since the 2009 crash have been calculated by the same source at about £190 billion.

“These persons, loaded with the riches of Midas, might perhaps be prevailed upon to contribute a minute fraction of their wealth in an acute national emergency, when one-sixth of the workforce earns less than the living wage and when one million people who cannot get a job are being deprived of all income by sanctioning and thereby being left utterly destitute.

“Charging the ultra-rich’s asset gains since 2009 to capital gains tax would raise more than the £25 billion that the Chancellor purports to need. I submit that it would introduce some semblance of democracy and social justice in this country if the Chancellor paid attention to this debate and thought deeply about what he is doing to our country and its people.”

Ronnie Campbell (Blyth Valley, Lab) suggested that the Government might save a lot more if its members “showed the same energy and enthusiasm for getting those who evade their taxes and run to tax havens as they do for going after the poor, the sick and people on the dole”.

Against this, David TC Davies offered insults and distortions of the facts, quoting the Daily Mail as though it provided an accurate account of current events: “Members of the shadow Cabinet might need a boxing referee to sort out their disputes at the moment, as we read today in the Daily Mail.”

He said: “We took office with a deficit of £160 billion and a debt that was rising rapidly to £1 trillion. That was after years of overspending in good times, as well as in bad, by Labour, a cheap money supply and lax banking regulation under the former Government.” Labour’s spending, up until the financial crisis, was always less than that of the previous Conservative administration; Gordon Brown and Tony Blair both ran a lower deficit than John Major and Margaret Thatcher, and at one point actually achieved a surplus, which is something that the Conservatives had not managed in the previous 18 years. While Mr Davies here complained about the “lax banking regulation”, Conservatives supported it at the time and in fact demanded more DE-regulation, which would have made the financial crisis worse when it happened.

“We had disastrous economic decisions, such as that to sell gold at a fraction of its real rate,” said Mr Davies. Yes – the UK lost around £9 billion. But compare that with the disastrous economic decision by George Osborne to impose more than £80 billion worth of cuts to achieve a £7 billion cut in the national deficit. The UK has lost £73 billion there, over a three-year period.

And Mr Davies said: “Worst of all and most seriously, we had a welfare system that allowed people to get into a trap of welfare dependency, leaving them on the dole for many years, but at the same time filling the consequent gap in employment by allowing mass and uncontrolled immigration into this country, which completely undercut British workers.” The first assertion is simply untrue; the second is a legacy of previous Conservative administrations that agreed to the free movement of EU member citizens, meaning that, when the eastern European countries joined in 2004, citizens migrated to the UK in the hope of a better life. Labour has admitted it should have negotiated for a delay in free movement until the economies of those countries had improved, making such migration less likely, but the situation was created before Labour took office.

Challenged on the Coalition’s record, Mr Davies fell back on the Tories’ current trick question, which is to counter any criticism by asking: “Is he suggesting that we are not doing enough to pay down the national debt? Is he suggesting that we should cut further and faster? If so, and if we had the support of other Opposition Members, that is exactly what the Government could do and, indeed, possibly should do. I look forward to seeing that support for getting the deficit down.” This disingenuous nonsense was batted away by Labour’s Hugh Bayley, who said “investing in the economy, creating jobs and thereby getting people off welfare and into work” was the way forward.

Mr Davies’ Conservative colleague Jeremy Lefroy took a different view, agreeing that increasing numbers of people are finding it impossible to make ends meet, and that job creation and apprenticeships were a better way out of poverty than changing the social security system alone. He agreed that sanctions were applied to his constituents “in a rather arbitrary manner”. He spoke against George Osborne’s suggested plan to remove housing benefits from people aged under 25, saying this “would have a drastic impact on young people who need to live away from home and who have no support from their families”. He spoke in favour of councils increasing their housing stock. And he admitted that disabled people faced severe problems when unfairly transferred from ESA to JSA: “A lady in my constituency says, ‘I am simply not fit for work, but by signing on for JSA I have to say that I am available and fit for work.’ She does not want to tell a lie.”

Steve Rotheram (Liverpool Walton, Labour) spoke powerfully about the effect of being on benefits: “Lots of people in my city are on benefits for the very first time. Far from being in clover — it beggars belief what we read in the right-wing press — they are struggling to make ends meet, and the problem that thousands of Liverpudlians are facing is new to them. For many, the idea that they might miss a rent payment is totally alien. They have not done that in the past 20 years, but since May 2010, their individual household incomes have been on such a downward trajectory that they now find themselves in rent arrears, seeking advice on debt management and unable to afford the daily cost of travel, food and energy. Figures suggest that 40 per cent of the adult population in Liverpool are struggling with serious debt problems.”

And he said poverty had health implications, too: “David Taylor-Robinson of the University of Liverpool and his fellow academics have highlighted the doubling of malnutrition-related hospital admissions nationally since 2008.”

John Hemming (Birmingham Yardley, LD) raised concerns about “the interrelationship between the welfare cap and victims of domestic violence, and whether there are situations that need more attention. I believe that people can get discretionary housing payment to leave a violent home, but it is important that we ensure that there is a route out of domestic violence for women. I am worried about that issue, just as I am about some wrongful sanctioning that I have seen. That does not help at all, because it undermines the whole process.” He also called for “a substantial increase in the minimum wage, because as the economy is improving the Government should look at that, rather than maintain things as they are”.

The vote gave huge endorsement to the call for an independent inquiry into poverty under the Coalition.

But with an election just 15 months away, how long will we have to wait for it to report?

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Osborne wants a ‘year of hard truths’. Here’s one: He’s HIDING the truth

06 Monday Jan 2014

Posted by Mike Sivier in Benefits, Conservative Party, Cost of living, Economy, Employment, Housing, People, Politics, Poverty, Public services, Tax, UK

≈ 11 Comments

Tags

austerity, benefit, benefits, Blackadder, budget, bus pass, Coalition, Conservative, cut, David Cameron, debt, deficit, Department, economy, elderly, fiscal multiplier, George Osborne, government, hard truths, harm, housing benefit, investment, learn, Michael Gove, Mike Sivier, mikesivier, mistakes, money, national insurance, pension, Pensions, people, politics, private sector, privatisation, profit, repeat, social security, tax, threshold, Tories, Tory, TV licence, Ugly Sisters, unemployment, Vox Political, welfare, Winter fuel allowance, work


Swivel-eyed loon: This is the kind of man who listens to George Osborne's comments about the economy. [Picture: Left Foot Forward]

Swivel-eyed loon: This is the kind of man who listens to George Osborne’s comments about the economy. [Picture: Left Foot Forward]

It must be panto season because the Conservative Party’s very own Ugly Sisters have just wheeled themselves out to deliver another helping of hilarious family fun:

Even more cuts are needed, worth billions of pounds, and there are still huge underlying problems with the economy, said Sister George, even though he knows that cuts are not the answer.

The small upturn he managed to engineer last year came from a natural upswing in the economy and the artificial housing boom that he created by Keynesian means and was nothing to do with austerity cuts. As for the economy, he’s had three and a half years to fix it! It seems clear that if there is an underlying problem, its surname is Osborne.

We may also extract some bitter humour from his words. Only days ago, his cabinet colleague Michael Gove attacked TV comedy Blackadder Goes Forth for claiming that our leaders in World War One never learnt from their mistakes but merely repeated them, over and over again, at huge cost in the lives of the working-class people who had to suffer the consequences of their decisions.

Now here’s George, telling us that he’s following up his failed austerity cuts with… more austerity cuts.

So we will see another £25 billion cut out of the British economy after the next election if the Conservatives win, including £12 billion from social security, he told us, providing everybody with an income lower than £50,000 per year with a perfect reason not to vote Conservative in 2015.

Come to think of it, why do working-class people ever vote for clowns like him?

He’ll cut departmental budgets by £13 billion, starving already wafer-thin public services and paving the way for their takeover by the private sector – on the long-disproved premise that profit-making businesses can do a better job for less money.

He’ll cut housing benefit for young people (under-25) who are just trying to get started in work – but he won’t force under-paying firms to boost their wages in order to offer a decent standard of living!

He also said – no, wait, that’s all he had to offer.

George justified his plan by trotting out the now-classic justification line of this Parliament – that the deficit was down by a third since 2010. He has been saying this for the last two years, and in all that time, the deficit hasn’t dropped at all! Last year the difference was a fraction of one per cent.

This is because the drop was achieved by cutting capital projects and there aren’t any more to cut. Taking billions out of the economy with benefit cuts and investment cuts actually harms the economy – there is less money moving through the system and therefore less opportunity for the fiscal multiplier effect to take place, for profit to be made and for taxes to be taken.

George has always had a bit of a blind spot there.

Sister George said he supported universal benefits for the elderly as they will only save around £10 million – but Sister David has suggested cutting free TV licences, bus passes and winter fuel allowances. Pensions are also taking a battering – never mind what they’re saying about the triple-lock.

David also said he wanted to cut taxes for the poor before the wealthy – but planned to do so by raising the threshold at which they begin to pay tax. This means they will not pay National Insurance either, and will have to find a higher-paying job before they can expect to contribute to their own pension fund. This means some people may never qualify for the state pension.

So they’re starting 2014 by promising austerity cuts that will harm the economy, cuts in benefits for the elderly that will save a comparatively negligible amount but will cause misery, and cuts in government budgets that will open the way to further privatisation and corporatisation of the state.

Those are the real hard truths – but you won’t hear these two characters admitting them.

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