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Tag Archives: multinational

Don’t be naive, Len – Cameron WANTS to lock privatisation into the NHS

03 Thursday Jul 2014

Posted by Mike Sivier in Business, Conservative Party, Corruption, European Union, Health, Justice, Law, Liberal Democrats, Politics, Public services, UK, USA

≈ 7 Comments

Tags

America, Andrew Lansley, company, Conservative, corporation, David Cameron, Democrat, EU, european union, firm, health, healthcare, HSCA, income, Investment Partnership, lawsuit, legal action, Len McCluskey, Lib Dem, Liberal, litigate, litigation, multinational, National Health Service, NHS, private, privatisation, profit, shareholder, Social Care Act, sue, Tories, Tory, Transatlantic Trade, TTIP, Unite, United States, US, Vince Cable, Whig


140703NHS-TTIP

Unite’s secretary general Len McCluskey would be naive indeed to think David Cameron is ever likely to heed his call for the National Health Service to be kept out of the EU/US Transatlantic Trade and Investment Partnership.

McCluskey has warned that the NHS could be sued by American healthcare multinationals if a UK government tried to return services to state control; they would argue that such renationalisations interfered with their potential profits, in breach of the trade agreement, as has been discussed on this blog in the past.

His appeal misses the point. The entire thrust of Coalition government policy is to ensure that the NHS becomes vulnerable to just such pressure, in order to ‘lock in’ the privatisations inflicted on us by Andrew Lansley’s horrifying Health and Social Care Act 2012.

One has to look no further than Vince Cable for confirmation of this. The Whig business secretary (you can’t call him a Liberal Democrat any more, and as a commenter pointed out today, the government as a whole behaves more like the old-style Whig Party from the 19th century. If the cap fits…) told The Independent: “There is no suggestion whatever that the TTIP negotiations could be used to undermine the fundamental principles of the NHS or advancing privatisation.”

What he means by this is that – as far as he is concerned, advancing privatisation is a fundamental principle of the NHS since Andrew Lansley’s hateful Act of Parliament. Therefore the TTIP agreement can only contribute to that project.

He said: “Our focus for health is to enable our world-class pharaceutical and medical devices sectors to benefit from improved access to the US market.”

If we have world-class healthcare already, why do we need access to a market-driven system that can only drag us down into mediocrity? Clearly he is not talking about healthcare at all; he is talking about the health service as a source of profit. The “benefit” he describes can only be profit – income for shareholders in private companies that could not be accrued while they were excluded from NHS work.

Everybody involved in this betrayal should be imprisoned as a traitor, with Cable and Lansley first to be sent down.

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Searching for silver linings in the Euro election’s purple cloud

26 Monday May 2014

Posted by Mike Sivier in Business, Conservative Party, Democracy, Employment, European Union, Foreign Affairs, Health, Immigration, Labour Party, Liberal Democrats, People, Politics, UK, UKIP, USA

≈ 9 Comments

Tags

BBC, business, Caroline Lucas, Catherine Bearder, company, Conservative, corporation, country, David Cameron, Democrat, Ed Miliband, election, Europe, European Parliament, Eurosceptic, far right, federal, firm, general, Green Party, immigrant, immigration, Investment Partnership, Labour, law, Lib Dem, Liberal, migrant, multinational, Natalie Bennett, nation, National Health Service, NHS, Nick Clegg, Nigel Farage, private, privatisation, privatise, ransom, referendum, right-wing, sovereign, state, Tories, Tory, Transatlantic Trade, TTIP, UK, UKIP, Westminster


No cause for celebration: This man is now the leader of the largest British political organisation in the European Parliament.

No cause for celebration: This man is now the leader of the largest British political organisation in the European Parliament.

Could the Transatlantic Trade and Investment Partnership be sunk off the coast of a new, anti-federalist Europe?

It seems like a natural consequence of the election victories enjoyed by Eurosceptic and far-right parties across the continent – and one of the few reasons to be optimistic about the result.

We don’t have all the information yet, so it is impossible to be sure, but it does seem likely that people who won popular support by emphasising national sovereignty against that of the EU will be against a trade agreement that suppresses nations’ rights to make their own laws, and puts multinational corporations above countries.

Unfortunately UKIP, the British Eurosceptic party that has won 23 seats (so far), seems more likely to support the agreement that would force British workers into lowest-common-denominator working conditions and pay deals, in a betrayal of the populist promises it made to get elected.

Nigel Farage’s campaign took a leaf out of the Conservative Party’s book by hiding some of UKIP’s most unpalatable plans from the electorate; now that he has what he wants, will we see UKIP working to ensure, for example, that National Health Service privatisation is locked into British law? That would require support for TTIP.

If Farage’s party doesn’t support the controversial plan, they’ll probably stay away from the vote (as they do in most matters; UKIP has one of the worst attendance records in the European Parliament).

Of course the European Parliament doesn’t work the same way as the UK Parliament; UKIP may have won the most seats but this does not automatically hand it power – 23 UK seats is only one-third of those available, not a majority, and it will have to join a larger grouping in order to make its voice heard.

UKIP’s choices over the next few days and weeks will be crucial, as they will allow us to form opinions about how the party’s victory will affect life here in the UK.

The Eurosceptic party’s victory – the first time in more than 100 years that an election has been won by someone other than Labour or the Conservatives – means the other British political parties have more soul-searching to do.

Labour came second, defying right-wing pundits on the BBC and elsewhere who were hoping to see “weird” Ed Miliband suffer. But his lead over the Tories is just 1.5 per cent – hardly a ringing endorsement.

Clearly the British people were not convinced by his offer and Labour must revise its position on Europe or prepare to lose the next general election.

A good starting-place for the Party of the Workers would be a promise to halt the flow of migrant workers from EU countries with weaker economies by pushing for a change to the rule allowing free movement between countries – ensuring that this only happens between states that have comparable economies.

This would put an end to the economic opportunism that has caused the perceived flood of migrants from the poorer countries of eastern Europe, and make it possible for British people to get better jobs, offering more working hours – and negotiate for higher pay.

It isn’t rocket science, but Labour has failed to grasp this concept. One has to wonder why. Maybe Labour is still a bit too fond of Conservative-style neoliberalism. Is that it, Ed?

Labour’s problems are nothing compared with those of the Conservative Party. David Cameron wagered that his promise of an in/out referendum on the EU, to take place in 2017, would win him the next UK general election – but this result has shown that the British people don’t believe a word of it.

Rather than be held to ransom by an over-privileged nob, they have turned to an untried party of even more hard-line right-wingers who would probably create worse problems for working Britons than even the Tories, if they were ever elected into office in Westminster.

That is the message David Cameron has to swallow today: We don’t believe him. We don’t trust him. We don’t want him.

Yet his party seems unrepentant. Prominent members have already rejected calls to strengthen the referendum offer, for example.

The loss will make Cameron more likely to seek a deal with UKIP – and one is already in the offing, if we are to believe the denials coming from other leading Tories. This would be to UKIP’s disadvantage as Farage only needs to look at Nick Clegg to see what will happen.

Clegg should be a broken man. Not only have the Liberal Democrats haemorrhaged local councillors, but now he also has to face up to the fact that he has lost all but one of his party’s MEPs.

The BBC said the survival of Catherine Bearder in the South East region prevented a “humiliating wipe-out” – but isn’t the loss of no less than nine MEPs humiliating enough?

Clegg is already facing calls for his resignation amid claims that nobody wants to listen to him any more. This means the turnabout from “I agree with Nick” in 2010 is now complete. Anyone considering going into coalition with the Conservatives (Farage) should pay close attention. The British voter hates traitors.

There is one more matter arising from this result; a fact that you are not likely to hear on the mainstream media, but one that seems increasingly important, considering the demise of the Liberal Democrats.

The Green Party was fourth-placed in this election. Its 1,244,475 (so far) voters mean it had two-sevenths of UKIP’s support, while the Conservative Party – the party in power here in the UK – had only three times as many supporters.

Expect Natalie Bennett and Caroline Lucas to capitalise on this for all they’re worth.

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How do we wrestle fairness from a rigged economic system?

12 Monday May 2014

Posted by Mike Sivier in Business, Corruption, Cost of living, Economy, European Union, Law, Politics, Poverty, UK, unemployment, USA

≈ 34 Comments

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]

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?

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Now the Tories want to sell your tax details to private firms

19 Saturday Apr 2014

Posted by Mike Sivier in Conservative Party, Corruption, Politics, Tax, UK

≈ 21 Comments

Tags

advertiser, agencies, agency, autumn statement, BBC, benefit, Big Brother Watch, budget, Coalition, companies, company, complaint fatigue, confidential, Conservative, contract, credit rating, Customs, data, David Gauke, disabled, discrimination, Dun & Bradstreet, Emma Carr, Equifax, Experian, firm, government, hm, hmrc, identification, identify, medical record, Mike Sivier, mikesivier, multinational, NHS, out, outcry, politics, price, privacy, private, private sector, pseudonymise, public, retailer, Revenue, risk, sweetheard deal, tax, The Guardian, Tories, Tory, Treasury, Vox Political, work


[Image: The Guardian.]

[Image: The Guardian.]

Not happy with its attempt to sell your health details to private companies, the moneygrubbing Conservative-led Coalition wants to sell off your personal tax data to companies, researchers and public bodies.

The government is considering how much to charge for the information, and claims that all data accessed by third parties will be “confidential”.

But the public has already been stung once by the Coalition’s incompetent attempts to go commercial. The proposed initiative to share NHS medical records with the private sector had to be suspended after a public outcry over “pseudonymised” data – a process by which medical records were said to be anonymous but it was in fact possible to trace exactly whose they were.

The plans for HM Revenue and Customs to share its data are, apparently, being overseen by Treasury minister David Gauke, whose relaxed attitude towards private firms led him to sign off on the infamous “sweetheart deals” that allowed multinational companies to keep billions of pounds of tax that they owed to the Treasury but didn’t want to pay.

Worse still, it turns out the government has already allowed private firms access to our data.

The government has strict rules about what can be released outside HMRC, with a near total ban on data sharing unless it is beneficial for the organisation’s internal work. But according to The Guardian, despite the restrictions, HMRC has quietly launched a pilot programme that has released data about VAT registration for research purposes to three private credit ratings agencies: Experian, Equifax and Dun & Bradstreet.

To comply with the law, the private ratings agencies, which determine credit scores for millions of people and businesses, have been contracted to act on behalf of HMRC and are “therefore treated as part of the department” – giving them access to tax data about businesses that would otherwise be confidential.

The government’s plans to change the law to allow the sale of anonymised individual tax data and release of the VAT register were buried in documents as part of the autumn statement and recent budget.

An HMRC spokesman told the BBC: “HMRC would only share data where this would generate clear public benefits, and where there are robust safeguards in place.

“Last year’s consultation made it very clear that there would be a rigorous accreditation process for anyone wanting access to the data and that any access would take place in a secure environment.

“Those accessing data would be subject to the same confidentiality provisions as HMRC staff, including a criminal sanction for unlawful disclosure of taxpayer information.”

So there. Do you feel better now?

Emma Carr, deputy director of civil rights campaign group, Big Brother Watch, doesn’t. She said: “The ongoing claims about anonymous data overlook the serious risks to privacy of individual level data being vulnerable to re-identification.

“Given the huge uproar about similar plans for medical records, you would have hoped HMRC would have learned that trying to sneak plans like this under the radar is not the way to build trust or develop good policy.”

Ross Anderson, a professor of security engineering at Cambridge University, told The Guardian the information could be highly useful to credit rating agencies, advertisers, and retailers wanting to practise price discrimination.

“This is going to be a big battleground,” he said. “If they were to make HMRC information more available, there’s an awful lot of people who would like to get their hands on it. Anonymisation is something about which they lied to us over medical data … If the same thing is about to be done by HMRC, there should be a much greater public debate about this.”

It seems the Conservatives in the Coalition are determined to sell information that doesn’t belong to them, and intend to grind us down with a relentless bombardment of initiatives and plans until they succeed.

They seem to by relying on the possibility that we will get ‘complaint fatigue’ and give up any protests. This is how they have beaten disabled people into submission to the draconian system for withdrawing state benefits from them; the system for appealing is drawn-out and convoluted, and many people with illnesses are too tired or weak to go through the process.

Also, this is another way of contracting-out government work to private firms, as evidenced by the VAT “research” that has been handed over to credit ratings agencies.

You can be sure of two things: Your data is not safe in their hands, and they won’t stop trying to sell it until they have been pushed out of government.

What are you going to do?

UPDATE: Campaigner Patrick Olszowski has responded to my challenge by launching a petition on the Change.org website. Please visit and sign!

Follow me on Twitter: @MidWalesMike

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Sort out the tax dodgers, Labour, then the benefit bill won’t be a problem

13 Sunday Oct 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Corruption, Cost of living, Economy, Employment, Health, Labour Party, Law, Liberal Democrats, People, Politics, Poverty, Tax, UK, unemployment

≈ 35 Comments

Tags

accountancy, accountant, Arcadia, avoid, Bank of England, benefit, Big Four, Capital Gains Tax, chief secretary, Conservative, Corporation Tax, David Gauke, Denis Healey, dividend, economist, evasion, exempt, fraud, Gordon Brown, HM Revenue and Customs, hmrc, Interest, jobs guarantee, Labour, Mike Sivier, mikesivier, Monaco, multinational, offshore, overseas, part-time, Pensions, Philip Green, Rachel Reeves, sanction, shadow, subsidiary, tax, tax gap, tax haven, Tina Green, Tories, Tory, tough, Treasury, Vox Political, work, zero hours


Off-message: If Rachel Reeves had promised to get as tough on tax avoidance in her previous job as she is promising to be on benefits now, Labour might have had more credibility.

Off-message: If Rachel Reeves had promised to get as tough on tax avoidance in her previous job as she is promising to be on benefits now, Labour might have had more credibility.

A lot of people have been getting their knickers in a knot about Rachel Reeves’ interview in today’s Observer – and rightly so.

In it, she tells us (wrongly), “We are not in an environment where there is more money around,” and says that Labour will be tougher than the Tories when it comes to slashing the benefits bill. She stressed that she wanted to explode the “myth” that Labour is soft on benefit costs.

There are a few myths feeding into these statements. Firstly, the myth that millions upon millions of British citizens are living a life of luxury on benefits, which is, quite frankly, infantile nonsense. Benefits do not pay the ordinary claimant enough to afford huge luxuries and never did. They were always intended to cover the cost of survival while the recipient looked for something better. Anything else is a lie concocted by unscrupulous politicians, that you would be a fool to believe.

Then there’s the myth that the British taxpayer is being defrauded out of a fortune by benefit cheats who are (again) living a life of luxury at our expense. One look at the figures dispels that idea! The fact is that only seven people in every thousand commit benefit fraud – at a consequently small cost to the overall budget – and the amount they receive simply would not support the lifestyle our politicians are suggesting for them.

Let’s move up to a bigger myth – that people prefer to live on benefits than get a job. We’ve now moved from infantile nonsense to dangerous nonsense. The current situation, engineered by the conservatives in both Coalition parties, means there are very few jobs available – around 500,000 at any one time, with 2.5 million people chasing them.

And what kind of jobs are they? How many are zero-hours contracts? How many are part-time? These jobs do not pay more than benefits (“Making Work Pay” – another Tory lie) so anyone taking them will be out-of-pocket.

Meanwhile, the Tories in power have rigged the system so that anyone who does not spend the entire working week pestering local businesses for jobs that they aren’t offering will be sanctioned and will lose their benefit for a period of up to three years! It is entirely disproportionate, considering the state of the economy, and may cost jobseekers a lot more than a few quid a week in the long run.

But this is how the benefits bill will be slashed – by the Conservatives and by Labour, if Rachel Reeves is to be believed. Ministers of any party, living in the la-la land of made-up statistics, will sanction people for failing to work hard enough at securing jobs that don’t exist!

Ms Reeves says Labour’s jobs guarantee will ensure that those jobs do exist but we don’t know that for sure. We do know that she intends to continue Tory policy on sanctions – blindly.

Finally, we have the biggest myth of all – that there isn’t enough money. HM Revenue and Customs just released estimates for the last-but-one tax year (2011-12), suggesting that it failed to collect £35 billion in evaded or avoided tax during that year.

That’s seven times more than the national bill for JSA, and more than 29 times the estimated cost of all benefit fraud. But wait – it gets better! This is only an estimate and it has long been believed that the true cost of the so-called “tax gap” is £120 billion – equal to each year’s national deficit, 24 times the cost of JSA or 100 times the cost of benefit fraud.

Why isn’t our government going after these criminals? Why hasn’t Labour promised to go after them if the Tories won’t?

Simple: Both main parties have been re-writing tax law to make it easier for rich individuals and large corporations to avoid paying tax, and ignoring flaws in tax laws that make avoidance possible.

So for example: In the late 1990s, the then-Labour government removed the tax on dividends that meant companies had to pay tax on profits if they wanted to pay them out to the owners. So for example Arcadia boss Philip Green’s wife Tina, who is technically the owner of the company and lives in Monaco, received a tax-free £1.2 billion dividend in 2005; if this tax had been in place, £300 million of that would have gone to the UK Treasury.

Gordon Brown slashed Capital Gains Tax from 40 per cent to 10 per cent in 2000, meaning income that his friends in private equity managed to engineer into capital gains would be taxed at a lower rate than was paid by their cleaners. Not the finest hour for the Party of the Worker!

And towards the end of its term, New Labour started dismantling the rules that guarded against industrial-scale tax avoidance by British multinationals, meaning profits returned to the UK from overseas subsidiaries would be exempt from tax. This created a substantial incentive for firms to send their income offshore.

Before the 2010 election, our old friend David Gauke made a lot of noise about stopping the limitless tax deductibility of interest payments, that had been used by Boots (the chemist) to slash its tax bill. Six months after the election, when he was in a position to do something about it, he was telling everybody the rules would not be altered because business considered them a competitive advantage.

The Coalition brought in tax exemptions for companies’ tax haven branches and for profits parked in tax haven subsidiary companies. Meanwhile, tax breaks for the cost of funding these offshore set-ups, from the UK, are also provided.

Corporation Tax will drop to 21 per cent by 2014, even though there is no evidence that cutting the rate will make the UK any more competitive in world business.

The Treasury’s mission is now to adjust the framework of tax laws to suit big business. The ‘Big Four’ accountancy firms are now well-entrenched in writing our tax laws for us – and they run the most popular tax avoidance schemes. Consultations have descended into a process of agreeing laws demanded by big businesses.

There are clear and irrefutable arguments that reversing these legislative idiocies and closing every other tax avoidance loophole will do far more for the economy than flogging the unemployed to death, looking for jobs that don’t exist.

But I don’t think former Bank of England economist Rachel Reeves will be interested in that. In 1975, an appalled taxpayer wrote to then-Chancellor Denis Healey, complaining that an employee of the Bank (which is supposed to work on preventing tax avoidance) had been giving advice on how to avoid tax. “I wonder if this is really part of the Bank of England’s duties,” the correspondent wrote.

The behaviour of Ms Reeves, the former Shadow Chief Secretary to the Treasury, suggests that she believes it is.

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This Royal Mail privatisation will harm us all

16 Monday Sep 2013

Posted by Mike Sivier in Business, Conservative Party, Economy, Employment, Liberal Democrats, Politics, Public services, UK

≈ 14 Comments

Tags

accountant, Coalition, conditions, Conservative, debt, Democrat, energy, financier, foreign, investment, lawyer, Liberal, Mike Sivier, mikesivier, multinational, pension fund, privatisation, privatise, profit, railway, Royal Mail, share, taxpayer, terms, Tories, Tory, utilities, utility, Vox Political, water, workforce


End of an institution: We can all wave goodbye to friendly Postman Pat; the new post-privatisation Royal Mail will be run according to strict for-profit rules and rural areas in particular are likely to suffer.

End of an institution: We can all wave goodbye to friendly Postman Pat; the new post-privatisation Royal Mail will be run according to strict for-profit rules and rural areas in particular are likely to suffer.

Is anybody happy that the Royal Mail is to be privatised?

Personally, I see no cause for celebration. Polls show that 70 per cent of the public are against privatisation – no matter which political party they support – and 96 per cent of the workforce don’t want it either, despite being offered shares in the new company. They’re not stupid. They know that workers in other privatised services have not been able to keep their shares. Will they be able to take the shares with them if they leave?

And what will happen to workforce terms and conditions?

Other people buying shares will have to pay at least £750 to get the smallest stake in the new company – that puts the sell-off well out of the reach of most people in these depressed times. It is a privatisation for financiers, lawyers and accountants. They won’t want to share the profit pot with staff – and profits are at a record high of £400 million per year.

Meanwhile, the Conservative and Liberal Democrat coalition government recently nationalised the Royal Mail’s pension fund obligations (its debt) so that taxpayers across the country will have to pay for it. The privatisation means any profits will go to those who can afford to buy the shares. This is bad business. Don’t these two political parties always claim they are the experts when it comes to money? It seems a strange claim to make in the light of such reckless endangerment of public funds.

What of the future? We have seen where privatisation leads, with the flotation of the railways, the energy and water companies on the stock exchange – shares have ended up in the hands of foreign multinationals who have pushed prices up and up, while providing ever-poorer services, and the companies concerned have continued to demand money from the government for any investment; this is because all the profits go to shareholders, who then feel justified in granting huge pay packets to their chief officers.

So the taxpayer continues shelling out for these so-called private utilities while the new owners have the time of their lives at our expense. The workers – and the service – suffer.

This is a change that will affect everyone. I hope everyone remembers who inflicted it on us, when they come to vote at the general election in 2015.

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Another ‘snout in the trough’ gets a sweetheart deal

29 Wednesday May 2013

Posted by Mike Sivier in Public services, Tax, UK

≈ 10 Comments

Tags

accountant, avoidance, Big Four, corporation, Dave Hartnett, Deloitte, HM Revenue and Customs, hmrc, Mike Sivier, mikesivier, multinational, Starbucks, sweetheart deal, tax, UK Treasury, Vodafone, Vox Political


Not such a sweetheart: Dave Hartnett, formerly of HMRC, now of Deloitte's. There's a line by Herbert Morris - "something in the lad's upturned face appealed to him. He hurled a brick at it". Would THIS man's upturned face appeal to you in the same way?

Not such a sweetheart: Dave Hartnett, formerly of HMRC, now of Deloitte’s. There’s a line by Herbert Morris – “something in the lad’s upturned face appealed to him. He hurled a brick at it”. Would THIS man’s upturned face appeal to you in the same way?

Dave Hartnett, the former tax executive responsible for the hugely controversial “sweetheart deals” that allowed multinational corporations including Vodafone and Starbucks to avoid paying billions of pounds in taxes to the UK treasury, has started work with Deloitte, the accountancy firm and auditor of – guess who? – Vodafone and Starbucks.

Hartnett quit as Permanent Secretary for Tax at HM Revenue and Customs and then took on the one-day-a-week role (according to, among others, The Independent). Deloitte – one of the so-called ‘Big Four’ accountancy firms at the heart of every major scheme for tax avoidance – continues in its role at the UK Treasury, helping (if you can call it that) to write the law on – guess what? – tax avoidance.

Considering all of the above, does anybody seriously expect us to believe that Hartnett was working for the public when he was at HMRC?

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History Repeats Itself, or The Decline and Fall of the Tory Empire

14 Tuesday May 2013

Posted by Mike Sivier in Conservative Party, Corruption, Education, People, Politics, Public services, Tax, UK

≈ 14 Comments

Tags

avoidance, civil, Conservative, corporation, David Cameron, economy, fall, George Osborne, government, haven, Justice, Mike Sivier, mikesivier, multinational, NHS, people, police, politics, prison, public services, Roman Empire, Rome, security, sell, service, sold, tax, Tories, Tory, Vox Political


A possible future: The city of London is sacked by barbarian hordes. As a priest watches from the steps of St Paul's, a burly Brixtonian drags David Cameron away from his wife Samantha. Or is it the fall of Rome?

A possible future: The city of London is sacked by barbarian hordes. As a priest watches from the steps of St Paul’s, a burly Brixtonian drags David Cameron away from his wife Samantha. Or is it the fall of Rome?

My brother phoned up to inform me that he has passed his PHd and is now a Doctor. This is a terrific achievement for a man who has been on incapacity benefits, of one form or another, for much of his adult life, and will open many doors for him.

During the conversation, he mentioned some very interesting facts.

Did you know that the fall of the Roman Empire began when its richest citizens decided not to pay their taxes anymore and withdrew to their private estates? Public services were divided up and sold off, and the bulk of the tax burden was placed on the poor, who were in no position to pay up.

Neither did I.

Isn’t that similar, though, to the situation in the UK right now? Never mind all the nonsense George Osborne and David Cameron have been talking about getting tough on tax avoidance; the fact is that the richest corporations – the multinationals and those with the ability to follow their example – have been paying far less than their due for many years, sequestering the rest of their money away in foreign tax havens, well away from prying tax inspectors’ eyes.

And David Cameron made it clear as early as 2011 that he wanted to sell of as much of Britain’s public services as he possibly could, retaining only justice and the security services (although we can see that justice is also being broken up, with plans to get lawyers to bid for the privilege of providing “adequate” service to defendants). The NHS is already being carved up; parts of some police forces have been privatised; we have some private prisons. Parts of the civil service are to be sold into private ownership. The list is growing.

The whole situation mirrors that of the Fall of Rome, and begs the question: Is David Cameron trying to engineer the end of British civilisation as we know it?

Just a thought.

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Government talks tough on tax-dodging – while helping corporations cut bills

14 Tuesday May 2013

Posted by Mike Sivier in Conservative Party, Politics, Tax, UK

≈ 9 Comments

Tags

avoidance, Chancellor, Coalition, Conservative, corporation, debt, deficit, economy, evasion, Exchequer, George Osborne, government, haven, intellectual property, mailbox, Mike Sivier, mikesivier, multinational, patent, people, politics, sales, tax, territorial, Tories, Tory, Treasury, VAT, Vox Political, Yvette Hodgson


Public unrest: Thousands of people across the UK have demonstrated against government decisions that have increasingly burdened poor people with higher taxes while the rich, and fabulously wealthy corporations, have received tax breaks. The government's response has been to order water cannons from Germany. Think about that.

Public unrest: Thousands of people across the UK have demonstrated against government decisions that have increasingly burdened poor people with higher taxes while the rich, and fabulously wealthy corporations, have received tax breaks. The government’s response has been to order water cannons from Germany. Think about that.

How long does George Osborne expect us to believe his blather about cracking down on corporate tax avoidance when we have evidence all around us that he is helping multinational firms to get out of paying the tax they owe this country.

This is taking place at a time when the UK tax take should be maximised, in order to get borrowing down and help the country pay its bills.

And it is being organised by the Chancellor of the Exchequer – the government member whose principle job is to ensure that those bills can be paid.

All this doubletalk suggests he has a personal agenda that is different from what he’s been telling us, doesn’t it?

Vox Political has already dealt – at length – with the fact that the Coalition government has legislated to make it easier for UK-based multinationals to shift their income into ‘mailboxes’ in tax havens, in order to avoid paying tax in this country.

Why is Osborne doing this, when he knows we need the money?

We know that Osborne has cut Corporation Tax by a quarter – from 28 per cent to 21 per cent – during the course of this Parliament, even though changes in the rate of this particular tax have been proven to have no effect on economic improvement. Look at the USA, where a Corporation Tax rate of 40 per cent has done nothing to hinder the resurgence of that country’s economy.

Why is Osborne doing this, when he knows we need the money?

Meanwhile, we have been hit with a large increase in sales tax (VAT) which hits poor people hardest. As a result, they have to reconsider their purchases and buy fewer items, meaning the Exchequer takes less money, with this tax, than it should.

Why is Osborne doing this, when he knows we need the money?

The European Commission reckons it has declared war on tax evasion and avoidance – but has instructed member nations to single out only non-EU countries as havens, even though member states including Luxembourg, the Netherlands, Ireland and Belgium are known to have engaged in potentially harmful tax behaviour.

Why are these countries doing this, when they know they need the money?

Beginning in 2009 (meaning we started this under a Labour administration, please note), the UK began switching from taxing worldwide income to solely taxing profit that companies claim is earned within the country, a so-called “territorial” system. It eliminated taxes on dividends paid to a UK company, even if coming from a subsidiary in a tax haven.

Why is Osborne continuing with this, when he knows we need the money?

Beginning last month, the UK slashed the tax rate to 10 per cent from the regular 23 per cent rate on profit attributed to patents and intellectual property.

Why is Osborne doing this, when he knows we need the money?

Here’s why, according to Yvette Hodgson, a spokeswoman for the Treasury. She said the government is “committed to creating the most competitive corporate tax system in the G20.

“Global tax rules have stood still for almost a century. Britain is leading the international effort to bring them into the 21st century.”

So 21st century taxation means beggaring not only populations but governments as well, while allowing multinational corporations to make off with all the cash?

No wonder people in Britain are so angry. We have every right to be.

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ConDem government launches all-out attack on your freedoms (who’ll get your vote next week?)

26 Friday Apr 2013

Posted by Mike Sivier in Benefits, Conservative Party, Corruption, Disability, Health, Justice, Labour Party, Law, Liberal Democrats, People, Police, Politics, Tax, UK

≈ 19 Comments

Tags

accountancy, accounts, aid, Atos, austerity, avoid, avoidance, blog, cancer, CCG, client, clinical, closed court, commissioning, committee, Commons, competition, conceal, corporation, corrupt, David Cameron, Deloitte, Department, embezzlement, Ernst & Young, Facebook, freedom, funds, G8, Group, healthcare, house, hypocrisy, insider, internet, Job Centre, Job Centre Plus, jobcentre, Johnny Void, Justice, KPMG, Labour, law, legal, legislation, loophole, mandate, mark mcgowan, multinational, NHS, Pensions, pig, press, PricewaterhouseCoopers, Pride's Purge, private, privatisation, public, Reynard's, satire, spam, speech, Steve Topley, syndrome, tax, tom pride, toy, Treasury, work, work capability assessment


Snouts in the trough: The Conservative-led government is so shameless it thinks it can get away with brutal cuts to our standard of living - the week before an election.

Snouts in the trough: The Conservative-led government is so shameless it thinks it can get away with brutal cuts to our standard of living – the week before an election.

It’s all been about freedom this week – or the lack of it.

A couple of days ago, Mark McGowan took an unconventional journey to Downing Street. Mr McGowan, who has bowel cancer, decided to highlight the government’s privatisation of the NHS by pushing a toy pig, with his nose, the 4.1 miles from Kings College Hospital, in Camberwell Green, to 10 Downing Street in protest against regulations being discussed that day in the House of Lords. The new rules force commissioning groups to open all services to commercial competition, unless only one provider is available, in direct contradiction of the government’s own assurances.

Speaking before the event, Mr McGowan said a few words that were particularly illuminating. “Without a mandate, having concealed their health policy, this government is giving away NHS contracts to the highest bidder,” he said.

“Under the cloak of austerity, the primary purpose of this government is to move public money into private pockets, as fast as humanly possible. They are like pigs at the trough of public money.

“These people in government are liars, criminals and thieves and should be arrested for embezzlement of public funds. A staggering 206 parliamentarians have recent or present financial private healthcare connections; amazingly all of them were allowed to vote on the Health and Social Care Act.

“This is not a democracy.”

You’d have expected this expression of free speech to have received a huge amount of coverage in the free press, wouldn’t you? Well, think again because I just checked: An article in the Metro and a video on something called London24. That’s all.

Ah, but there’s always Facebook, where bloggers such as myself can freely direct readers such as yourselves to our work and highlight the subjects not covered in the so-called popular press, isn’t there?

Well, this was a story that Facebook was doing its damnedest to make sure didn’t get out.

It seems one of the earliest articles – the Scriptonite Daily blog – was unilaterally declared to be spam by Facebook, with references removed from the site, after the post received more than 1,000 shares.

Facebook then seemed to get a taste for censorship: The Pride’s Purge blog by Tom Pride received similar treatment after it posted links to an openly-satirical article (It was plainly marked ‘Satire’) about the Department for Work and Pensions and Atos.

Tom claimed in a later post that a JobCentre Plus worker “openly bragged” to him that JCP had complained to Facebook about him, and this had led to the censorship of his work.

Even this blog, which only posted links to other articles about these issues, was targeted for attack. As readers who link here from Facebook will know – you alerted me to it – we had a couple of days when visits here were accompanied by this stern warning: “Facebook thinks this site may be unsafe. If you’re not familiar with it, please provide feedback by marking it as spam (you’ll be brought back to Facebook).” As site statistics show, this was enough to put many readers off.

I wasn’t having it. I have written to Facebook, pointing out that the unfounded allegation is defamatory and demanding that reparations must be made – to charity, and to the Labour Party (of which I am a member), since this site is not for profit and the attacks seemed to be centred on left-leaning bloggers. They’ve got three weeks to respond, then I start adding noughts to the amount that I suggested.

Facebook has said the mass censorship was a mistake made by its automated systems – but you’d have to be gullible in the extreme to believe that.

So much for freedom of speech; so much for freedom of the press; so much for freedom on the Internet.

Yesterday it emerged that a man had been held in prison for two weeks after claims were made that he made a “threat to kill” during an Atos work capability assessment.

Steve Topley, a 49-year-old Hucknall father with multiple health conditions including Reynard’s syndrome, who has a heart replacement valve and lost one of his kidneys to cancer, and is on a strict medication regime including treatment to stabilise his blood levels and maintain safe blood pressure, was whisked away after he made comments about a person who was not present at the assessment.

He was arrested, subjected to a mental health assessment which offered no reason to detain him, so was re-arrested and taken to Nottingham police station where he was charged and kept in custody. He was refused bail twice in closed courts which, his family said, they were refused permission to attend.

Today (Friday) he was taken to another secret court, where he was charged, admitted the crime, and bailed – with the likelihood of a community sentence waiting for him at his next appearance.

Johnny Void, writing about this in his blog, made some particularly apposite comments on the subject, as follows: “This incident happened in the middle of an Atos assessment which are notoriously stressful and frightening for claimants. If he hadn’t been put through that, it is unlikely he would have said whatever he said, which it seems was not a very credible threat, at least as far as the Judge was concerned.

“It can make people react irrationally or angrily and they end up doing things they wouldn’t ordinarily do.  The context these events take place in is often ignored by ‘professionals’, because to them it is all just a job and they can’t understand why people are not being reasonable. The stark terror felt by some people facing courts, benefit assessments, arrests, bailiffs, prisons or even more seemingly benign institutions such as social services, Jobcentres and community mental health teams can often cause people to destroy themselves. This can happen even if ‘professionals’ concerned do their jobs properly within the constrain of the system and no-one is really personally culpable.”

So much for personal freedom – but wait. The situation here is actually worse than even this story makes out. I am indebted to Vox Political commenter vince032013, who tells us the following, about so-called ‘reforms’ to Legal Aid (italics mine):

“Things might be about to get a lot worse. The government are now planning on reforming the criminal justice system. Highlights are 1. Suspects in the police station will not be able to choose a solicitor. They will be appointed one. 2. The number of solicitors’ firms is to be reduced by 75 per cent (that’s not a typo – 75 per cent). 3. The reduction in the number of solicitors is to be achieved by putting criminal work out to tender. 4. The bidders are not allowed to bid at over 82.5 per cent of the current cost of running a criminal case. 5. The consultation which has introduced this idea states in terms that it does not want solicitors to offer any more than an “acceptable” level of service to suspects. 6. Once charged, defendants may be represented in court by someone with no Crown Court trial experience (and will not be able to exercise a choice to change that representative). If you’re interested read the consultation here

“https://consult.justice.gov.uk/digital-communications/transforming-legal-aid

“and if you don’t like it sign this petition

“http://epetitions.direct.gov.uk/petitions/48628”

In other words, this Conservative/Liberal Democrat government is determined to rig the justice system against anybody who becomes caught up in it. The conditions described by the commenter are utterly corrupt and offer nobody in this country any chance at justice – unless they can afford it. So the really serious criminals and gangsters have nothing at all to fear.

Meanwhile…

Today we also discovered that the so-called “big four” accountancy firms – Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers – who were brought into the Treasury to help the government draw up tax laws, have been using the ‘insider’ knowledge they have gained to help wealthy clients avoid paying taxes. They have been telling multinational corporations and wealthy individuals how to exploit loopholes in the legislation they have helped to write – according to the House of Commons’ public accounts committee.

This represents a staggering betrayal of the working- and middle-class citizens of this country, who have no choice but to pay all the tax that the government demands from them or face imprisonment – and an appalling display of hypocrisy on the part of David Cameron, the British Prime Minister who, only yesterday, said he planned to use the UK’s chairmanship of the G8 nations to tackle what he himself described as “staggering” worldwide levels of tax evasion and avoidance – levels that he, himself, is helping to boost.

Now, I’m not voting in the elections next week. There isn’t a poll in my part of the country. But if you are planning to vote…

Considering the way the government has pushed through its plans to sell the NHS to the highest bidders (without a mandate, having concealed its health policy); considering the way it has been implicated in attempts to stop the public from finding out about the plans and what they mean (in conjunction with Facebook); considering how its servants take it upon themselves to subject very-ill individuals to extreme pressure and then imprison them on the basis of what they say in those circumstances; considering the plan to deny justice to the poor and make high-quality legal advice available only to the extremely rich people, including rich criminals, who can afford it; and considering the fact that it has opened the door for those who should be paying the most tax in this country to avoid doing so altogether – while claiming it is doing the exact opposite…

Taking all those issues into consideration, if you are a working-class or middle-class person planning to vote Conservative or Liberal Democrat next Thursday, then for your own safety, submit yourself for medical assessment because you must be barking mad.

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