Category Archives: Banking

Cash or cashless? Vested interests strive to win the argument

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Charles Randell, chair of the government’s Payment Systems Regulator asks a pertinent question:Should access to such a basic financial service be universal, or commercially driven?”

Cashless: “Digital payments are clearly the future”: a spokeswoman for digital payment company Square

One protagonist, Helen Prowse, a spokeswoman for digital payment company Square, spoke at a debate held by Monzo, a London-based fintech startup. “Digital payments are clearly the future.” She continued: “In the UK, plastic payment cards are the most popular way to buy things. Only about 30% of transactions use paper notes and coins, The ratio is already at 15% in Sweden, which will become effectively cashless in a few years’ time”. Quartz journalist John Detrixhe appears to agree. He gives several reasons for ‘getting rid’ of cash:

  • When shops switch over to digital money, their workers are less likely to be subject to violent robbery.
  • It can also be faster and cheaper to process than notes and coins.
  • Cash helps to enable the underground economy through tax evasion as well as illicit finance.

But G4S issued a report (April ’18) showing that cash circulation has increased

G4S which transports, process, recycle, securely store and manages cash published the World Cash Report in April 2018.  It surveyed 47 countries covering 75% of the global population and over 90% of the world’s GDP. The findings show that demand for cash continues to rise globally, despite the increase in electronic payment options in recent years; cash in circulation relative to GDP has increased to 9.6% across all continents, up from 8.1% in 2011.

The report highlights the variety of payment habits in different regions. In Europe 80% of point-of-sale transactions are conducted in cash, while in North America, where card payments are most regularly used, cash use still accounts for 31%. In Asia the rise of online purchases does not mean that cash is taken out of the equation, with more than 3 out of every 4 online purchases in a number of countries paid for by cash on delivery.

Access to Cash Review: cash is “an economic necessity” for around 25 million people in Britain

Natalie Ceeney (right), a successful civil servant who is now non-executive chair of Innovate Finance, chaired the independent Access to Cash Review, funded by Link, the UK’s biggest network of cash machines. She said “The issue is that digital does not yet work for everyone.”

The review indicated that physical notes and coins are “an economic necessity” for around 25 million people in Britain, and nearly half of people surveyed said a cashless society would be problematic for them. ATMs and bank branches are under particular pressure in rural communities, where broadband and mobile service is unreliable or unavailable. Next month, the review plans to publish its recommendations on how to deal with declining cash availability.

Nicky Morgan, chair of the UK’s Treasury Committee, said recently, “Whilst cash may no longer be king, it continues to play an important role in the lives of millions. So what we’ve heard today from the PSR should set alarm bells ringing. It’s clear that the whole way that people access their cash via ATMs is starting to fail. With the way that people access their cash seemingly on the precipice of collapsing, the government can’t just bury its head in the sand. . . .”

And what will happen in a cashless society when electronic systems malfunction – as machines do – when the mobile phone cannot get a signal, when cable sheaths fail or when someone accidentally damages a phone cable?

 

 

 

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Unwillingly herded towards risky online banking? Resist!

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Bank branches are closing all over the country, with huge savings in the upkeep of buildings and staff wages. This is due, it is said, to customers undertaking more transactions online. In many cases this is a result of firm persuasion by the banks urging customers towards the more profitable system.

A reader experienced this firm encouragement towards online banking a few days ago when phoning to transfer funds. The impression was given that this was essential, but when pressed the staff member admitted it was not. Indeed she wavered a great deal more when it was pointed out that her job could well be eliminated with the closing down of telephone operations.

America’s Central State Bank warns that – due to the open nature of the Internet – all web-based services are inherently subject to risks such as online theft of access codes/user ID/username, PIN/Password, virus attacks, hacking, unauthorized access and fraudulent transactions. 

The National Audit Office records that the volume of online ‘card not present’ fraud increased by 103% between 2011 and 2016

http://uk.businessinsider.com/national-audit-office-rise-in-online-fraud-policing-insufficient-2017-7

Online banking security rated by Which? At best, a 16% chance of being defrauded

In 2015 online bank fraud was described in the Guardian as the UK’s fastest growing area of crime – doubling from £60m in 2014 to an expected total beyond £130m this year – and the losses to consumers have in some cases been of the life-changing order of £90,000 each.

50 banks were surveyed by Which? and its August 2017 report revealed that all had experienced fraud – the best were 84% free of fraud, the worst only 56%. So even customers using the ‘best’ banks have a 16% chance of being defrauded.

Defrauded customers should accept the blame and not expect automatic refunds

Ross Anderson (right: professor of security engineering at the University of Cambridge’s computer laboratory) has seen the mass take up of online banking, and more recently the explosion in fraudulent activity. Financial fraud cost £2m a day in 2016, with older people disproportionately hit.

According to Anderson and other security experts, banks are shifting liability away from themselves and on to the customer – aided by a Financial Ombudsman Service that they claim rarely challenges the banks following a fraud. Miles Brignall in the Guardian comments: “The bank is on the hook for credit card losses, but not most bank frauds”.

The Independent reported that RBS’s chief executive Ross McEwan caused a storm when he claimed that it is not banks’ responsibility if customers are defrauded in such circumstances. The bank boss – who as part of his role also runs the NatWest brand, which has 24 million retail customers – said he didn’t think the bank had “a duty of care” to victims. They should accept the blame and not expect automatic refunds, he argued. 5,000 of his customers who were defrauded of £25m during nine months in 2015 – and anyone else who has suffered such losses – should consider taking class action.

Anderson, one of Britain’s foremost experts on cybersecurity, says he has never banked online – and has no plans to do so. He believes that system has become so weighted in favour of the banks that the customers now carry all the risk.  

Miles Brignall in the Guardian asks: “If a man who has chronicled the rise of online banking won’t use it, what hope is there for the rest of us?”

 

 

 

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Carillion provokes MP’s broadside: “taxpayer-funded services should be conducted in an ethos of public service rather than for private advantage”

Major banks and credit insurers are calling on the government to ‘step in’, as Carillion’s debts soar and ‘huge write-downs’ are announced on the value of several old contracts.

Some – according to the Financial Times – are seeking a taxpayer guarantee for the company’s debt and assurances that Carillion will be allowed to compete for future contracts, despite the company’s troubled state. Oliver Dowden, newly promoted to the frontbench, says that the government is making contingency plans for Carillion folding.

If Carillion goes under, writes MP Jon Trickett, “We would effectively be paying for these services twice. This government has socialised the risk but privatised years’ worth of profit for shareholders . . . it is allowing firms with public contracts to pay millions to private shareholders as the public suffers from cuts to disability benefits, schools and the NHS”. He adds:

“They are in debt to the tune of £1.5bn, while being valued at less than £100m and are being investigated by the Financial Conduct Authority over financial statements issued in the run-up to July’s profit warning . . .and if they fold, Britain could face a huge bailout so that our schools, hospitals and train lines keep running”.

Will the 99% bail Carillion out?

The government now relies on this contractor for a wide range of services. The Financial Times lists Carillion’s major contracts in the transport, defence/security and health sectors and points out that Labour’s Shadow Business Secretary has asked why ministers continued to sign off major contracts with the company even after it issued a profit warning in July 2017.

Theresa May’s new Cabinet ministers have – nevertheless – confirmed that they still intend to continue with the privatisation and outsourcing of public services to private firms which then make a profit at the expense of the taxpayer.

Some politicians and party members have, through directorships, shareholdings or the employment of family and friends, a vested interest in these companies, many of which donate to Conservative party funds, hoping to ensure another Conservative government.

MP Jon Trickett, shadow minister for the cabinet office, whose principled political life is outlined here, presents the view of ‘Corbyn Labour’, that taxpayer-funded services should be conducted in an ethos of public service rather than for private advantage: “Whether that’s to run welfare payments to those receiving universal credit, running hospitals or administrating schools in huge academy chains . . . “

He points out that when these firms cannot make good on their obligations under these contracts the British public picks up the bill, citing the termination of Virgin’s contracts on the East Coast main line.

The MP adds: “I represent a former mining area, which hasn’t seen meaningful private investment in decades, and little public investment since the 2010 election. Some of the poorest people in the country, with some of the worst prospects due to years of Tory government, live there. They have seen private firms make profit out of their benefits, their schools and crisis-stricken NHS services”. He ends by giving an assurance:

“Labour would reverse the presumption in favour of outsourcing and provide more cost-effective services, treating workers better by running many services in-house”.

Jon Trickett’s article: https://labourlist.org/2018/01/jon-trickett-crisis-at-carillion-reveals-the-risks-in-tory-outsourcing-dogma/

 

 

 

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A ‘racket’? Government departments and regulators are protecting elites by covering up large corporations’ failures

The growing public awareness of this unholy alliance is leading to a rapidly increasing loss of confidence in our institutions of democracy, lower tax revenues, and cuts in healthcare, pensions, education and infrastructure spend.

Professor Prem Sikka’s latest article scathingly outlines the way in which regulatory bodies and government departments are protecting elites and corporations from retribution.

He cites seven examples, the latest being the refusal of the Financial Conduct Authority (FCA), the UK’s banking regulator, to publish its 361-page report on misconduct at the state-controlled Royal Bank of Scotland (RBS).

The 2013 Tomlinson Report showed that instead of rescuing struggling businesses, banks made money by asset-stripping and destroying them. This was followed-up an investigation by the FCA and in November 2016 it published what purported to be a summary of its full report. Subsequently, the BBC obtained a leaked version of the report. It referred to “inappropriate action” by RBS’s Global Restructuring Group (GRG).

The inappropriate action experienced by 92% of the businesses included complex loans, higher interest rates, and unnecessary fees. Businesses could not easily return to good health.

For the period 2013-2015, GRG handled 16,000 companies – and about 10% survived. Many ended up in administration and liquidation, with their assets were sold cheaply. RBS has set aside around £400 million to deal with possible claims.

The secret FCA report is not only an indictment of RBS, but also of other banks, accountants and lawyers. People are entitled to see the full scale of the scandal, and remedial legislation cannot be drafted without sight of the whole report. Yet the regulator’s impulse is to shield RBS and its accomplices.

Professor Sikka’s comment: “We can’t afford this racket” refers to the ‘knock-on effect’ as lower tax revenues (and a self-centred, heartless ideology?) lead to cuts in healthcare, pensions, education, public services and infrastructure spending.

 

 

 

 

https://leftfootforward.org/2017/10/six-ways-the-uks-regulatory-system-is-a-protection-racket-for-the-elite/

Brexit – advantage the already rich: John Buchan, Jeremy Corbyn and Private Eye

John Buchan, 1915: Financiers can make big profits on a falling market and it suits their books to set Europe by the ears.

Jeremy Corbyn, March 2017; the Tories’ hard Brexit’ will benefit super rich and hold back millions.

Private Eye, 6.10.17: investors could swoop on cheap assets after Brexit wrecks the British economy

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Jeremy Corbyn opened in I News:

When Pret A Manger opened its first sandwich shop in 1986, I doubt many of us would have expected well-known high street chains to end up trying to pay their staff in leftovers. But that’s exactly what’s happened. Last week, Pret had to abandon plans for a work experience scheme paying 16-18 year olds only with food after a public outcry.

A taste of things to come . . .

It was an even faster U-turn than Tory chancellor Philip Hammond’s reversal of an increase in National Insurance for the self-employed – also after an outcry. Both the Hammond and the Pret sagas look like a taste of things to come. The not-so-hidden agenda of hard right Brexiteers, from trade secretary Liam Fox to foreign secretary Boris Johnson, is to create a bargain basement economy for big business.

In 2012, Fox said it is “too difficult to hire and fire” and “intellectually unsustainable to believe that workplace rights should remain untouchable”. Employment rights under threat Now that Article 50 has been triggered, Fox has his chance to sweep away decades of hard-won employment, consumer and environmental rights enshrined in EU law. In fact that’s exactly the direction Theresa May has made clear she intends to go if she can’t get the Brexit deal she wants – and Johnson has said not getting a deal is “perfectly okay”.

The Tories are preparing a Great Repeal Bill as part of the Brexit process, and all the signs are they will try to use it to tip the economic scales even further in favour of their super-rich supporters. They have after all spent the past seven years giving them one tax break after another while imposing austerity on everyone else.

Altogether, on official figures, they will have handed out £73bn in welfare for the wealthy between now and 2022. They have cut inheritance tax, the bank levy, capital gains tax, the top rate of income tax and corporation tax – squeezing or slashing support for the NHS, social care and other vital services.

While the earnings of working people have been held back, executive pay has soared to levels beyond most people’s wildest dreams. The chief executives of the top 100 companies on the London Stock Market were paid on average £5.5m each in 2015 – that’s 183 times average earnings.

The Conservatives justify tax cuts for the richest and big business by saying they will lead to an increase in investment. But there is no evidence of that.

On the contrary, investment in the UK has fallen, leaving us with antiquated infrastructure and uncompetitive industries. The future of our country cannot be left to the free market and the whims of the wealthy.

 

 

 

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FT: a strange blend of truth and spleen unwittingly affirms Jeremy Corbyn’s ‘superannuated socialist’ stance

The FT’s Philip Stephens, Tony Blair’s biographer, pertinently remarks:Today’s elites should ask themselves just when it became acceptable for politicians to walk straight from public office into the boardroom; for central bank chiefs to sell themselves to US investment banks; and for business leaders to pay themselves whatever they pleased”. He continues:

“Now as after 1945, the boundaries between public and private have to change. At its simplest, establishing trust is about behaviour. . . The lesson Europe’s postwar political leaders drew from the societal collapses of the 1930s was that a sustainable equilibrium between democracy and capitalism had been shattered by market excesses.

“Citizens were unwilling to accept a model for the market that handed all the benefits to elites and imposed the costs on the poor. In the US, then president Franklin Delano Roosevelt responded with the New Deal. Europe waited until the continent had been reduced to rubble in 1945 before building what the British called the welfare state and continental governments called the European social model. Economic prosperity and political stability were the rewards.

“The present generation of politicians should learn from the experience. Defending a status quo that is manifestly unfair in its distribution of wealth and opportunity serves only to put weapons in the hands of populists . . .

“One way to start redrawing the boundaries would be to take on the big corporate monopolies that have eschewed wealth creation for rent-seeking; to oblige digital behemoths such as Google and Apple to pay more than token amounts of tax; to ensure immigration does not drive down wages; and to put in place worthwhile training alongside flexible markets”.

The difference: Corbyn would act for altruistic reasons, but thepresent generation of politicians’ concede only to retain privilege

Stephens (right) ends by saying that what we need is a social market economy – combining the central elements of a free market (private property, free foreign trade, exchange of goods and free formation of prices) and universal health care, old-age pension and unemployment insurance as part of an extensive social security system

And most of this is precisely what Jeremy Corbyn, Britain’s Labour party leader, wholeheartedly supports. Though dismissed by Stephens as a ‘superannuated socialist’, he would uphold and enhance the system presently faced with public disgust at the ‘fat-cat’ political-corporate revolving door with its rewards for failure. This disgust is combined with anger at the austerity regime imposed by those currently in power, which prevents local authorities from continuing basic public services and deprives some of the least fortunate of food and decent housing.

 

 

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Whistleblowers 11: the ones that got away?

In Britain whistleblowers are usually made to suffer, despite the nicknamed ‘Whistle-blowers Act’: There have been several general articles about whistleblowing on this site & others focussing on some brave individuals who suffered for revealing unwelcome truths. Before this site was set up there were health sector whistleblowers; Marta Andreasen & Paul van Buitenen also revealed shocking cases of EU financial mismanagement and suffered for it.

 Just for the record – covered profusely in MSM:

Professor Prem Sikka tweeted about a case involving Barclays chief executive Jes Staley, who started to work for Barclays in December 2015 and later recruited at least four senior executives who had worked with him at JPMorgan Chase. In June, when Barclays received two anonymous letters making allegations of what the bank describes as “a personal nature” about one of the investment bankers, Mr Staley asked Barclays’ security team to track down the author, though the bank’s compliance department had logged the letters as potential whistleblowing.

Barclays’ board only learnt of Mr Staley’s efforts to identify the tipster in January when a second whistleblower, this time a Barclays’ employee, came forward and directly contacted its outside directors.  In a letter, the Barclays employee pointed to flaws in the bank’s whistle-blower procedures and cited Mr. Staley’s attempts to unveil the anonymous critic.

The bank said it had instructed law firm Simmons & Simmons to conduct an investigation which found that Mr Staley erred in trying to identify the authors of the letters, who in the end were not unmasked. Barclays’ board also informed the FCA and PRA.  Barclays said it has given Staley a formal written warning and will slash his salary. The bank has promised to review its whistleblowing programme.

The Prudential Regulation Authority and the Financial Conduct Authority are now looking into the matter in Britain, while New York’s Department of Financial Services and the US Department of Justice are conducting investigations in the United States.

Paul Moore, a former HBOS banker, was dismissed from HBOS in the run-up to the financial crisis in 2004 for whistleblowing – warning that the bank was running risks it did not understand. He told The Mail on Sunday: ‘Staley should be fired. Trying to find out the identity of an anonymous whistleblower where the motivation is obviously to try to crush them is gross misconduct.’

It requires real courage for whistleblowers to act on what they see, especially in the UK. One FT article notes that a recent survey by the Ethics Resource Centre of employees in 13 countries found that 63% of British employees who reported wrongdoing experienced retaliation, second only to India and far worse than the 36 per cent global averageMore detail here:

 

 

 

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Murdoch press lists corporate spending on political and lobbying activities

Times journalists Alex Ralph, and Harry Wilson present and comment on material collected by the Times Data Team: Tom Wills, Ryan Watts, Kira Schacht. Links have been added by PCU’s editor to enable readers to learn more if they wish to do so.

“FTSE 100 groups, including banks, defence contractors, tobacco manufacturers and telecoms companies, have spent more than £24 million on lobbying in Brussels and about £335,000 funding all-party parliamentary groups in Westminster”.

They add: “There is no suggestion of any wrongdoing or rule-breaking by companies”.

FTSE 100 political spending (over the last two years)

The Times first focusses on All Party Parliamentary Groups (APPGs)

APPGs are run by and for Members of the Commons and Lords who join together to pursue a particular topic or interest. Many involve individuals and organisations from outside Parliament in their administration and activities – or as the journalists put it, “help to push industry agendas in parliament”. Read more here.

Unsurprisingly, BAE Systems, which spent £37,000 on a group “to promote better understanding of the Her Majesty’s armed forces in parliament”, is among the biggest backers of the parliamentary groups.

The writers comment that parliamentary groups have proved contentious because of the large amounts spent on reports that often support the views of industry and which grant access to parliament for companies and lobbyists.

BT’s £53,000 included backing the parliamentary internet, communications and technology forum, known as Pictfor, whose members include Tom Watson, the Labour deputy leader and Lord Birt, former Blair adviser and director-general of the BBC. A list of funders may be seen here.

Note: ’Donations to APPGs’ shows spending between Jan 2015 and Mar 2017 as declared on the Register of APPGs. ’Spend on EU lobbying’ shows companies’ minimum estimates for the most recent financial year declared on the EU Transparency Register at the time of research. Here is a snapshot taken from one of 10 pages listing donations/other spending and the companies’ rationales for these sums being given.

The Times’ second focus is on the denial of information to shareholders

Less than £10,000 of identified political and lobbying spending in the EU was disclosed to shareholders in the companies’ recent annual reports. ompanies are not required to disclose details to shareholders and little information on corporate political and lobbying activities is revealed in annual reports, which are published before shareholder meetings. The tens of millions of euros spent each year in the EU go largely undeclared to shareholders.

Corporate Europe, which campaigns for greater transparency in EU decision making, has spent years tracking how the business world moulds policy.

Vicky Cann, the group’s UK representative, said that the banking and energy industries were the most active lobbyists. “The financial services industry is a huge spender and even then we think the real scope of their spending is probably bigger than we can currently see,” she said. Her colleague gave the example of recent emissions legislation that was the subject of intense lobbying by BP and Shell.

As Peter van Veen, director of business integrity at Transparency International, said, “Corporate transparency over political activities is important to ensure the public can have the confidence that their politicians and industry leaders are conducting business ethically . . . If companies are not voluntarily willing to disclose their political activities and funding of these, then stronger legislation should be considered and a possible starting point may be to broaden the definition of political activities and expenditure in the Companies Act 2006.”

 

 

 

 

Introducing Political Barb: “Chocolate, Weapons and War”

It’s that time of year again, or more accurately one of those two times of year. The time when the right-wing media works itself into a frenzy over perceived slights against Christianity.

Steve Beauchampé points out that the Daily Telegraph, in a move made to bolster profits, forces many of its staff to work producing a paper on Easter Sunday (and Christmas Day), just as it expects newsagents to open on Easter Sunday to sell that day’s version of the Telegraph and help to raise those profits and the remuneration paid to its senior staff.

Despite this it feels able to ‘froth at the mouth’, claiming that the National Trust was ‘airbrushing’ Easter’. He highlights the ‘faux anger’ generated by a joint National Trust/Cadbury event called the Great Egg Hunt (omitting the word Easter) –  the National Trust website, though it uses the word Easter 13,000 times, and because one of Cadburys best-selling products is called a creme egg – not a creme Easter egg.

Meanwhile Prime Minister Theresa May finds time in her busy schedule of hawking arms and British military expertise to the tyrannical rulers of Oman, Jordan and the daddy of all despots, Saudi Arabia, to call the absence of the word Easter in the NT/Cadbury promotion “absolutely ridiculous”.

 

This, as she should be saying: “the United Kingdom is in danger of fracturing apart and Sturgeon’s running rings around me, I’ve got a generally weak hand to play in the Brexit negotiations whatever Duncan-Smith tells you and I daren’t lose Gibraltar because it’s a British military base and one of our numerous off-shore tax havens, particularly attractive to casinos …and you’re bothering me with this!!?”

The Daily Telegraph is bothered about the word Easter being missed off the title of a children’s hunt for chocolate eggs:

  • one week after the UK served notification of its intention to leave the EU,
  • a senior Tory has suggested that we might go to war with Spain,
  • our Trade Secretary is in the Philippines meeting the self-confessed killer President Duterte and speaking of the two nations’ shared values’,
  • the Chancellor is offering India access to our potentially low tax, low regulation banking sector
  • and Theresa May is off selling yet more weapons to middle east dictators (she must be on commission with BAE Systems!).

Beauchampé’s final comment: “Nice to see the pro-government wing of the Third Estate getting their priorities right”.  

First published in the BirminghamPress.com: http://thebirminghampress.com/2017/04/chocolate-weapons-and-war/ . Republished in https://politicalcleanup.wordpress.com/political-barbs/chocolate-weapons-and-war/

 

 

 

 

British values 2 – a trawl though our database

Following on the commentary on our British values encapsulated on Facebook, we found more extensive contributions about British values from six people:

1. Taken over by greedy merchants so that the rich benefit at the expense of the poor, as well as at the expense of the planet (endpiece from Christine Parkinson’s first book, 2002)

She continues “I mainly refer to the people who trade in all kinds of goods for their own benefit, regardless of the effect this has on the stability of the world, its ecosystems, its mineral and animal resources, its local economies and cultural traditions . . . the capture and international trade in rare species, ivory, fur, immature primates etc; the development of animal foodstuffs from animal carcases (creating cannibalism in ruminant species and diseases like BSE and CJD); the holding of developing countries to ransom by powerful banks, through exploitative usury; a similar use of oil (itself a dangerous pollutant) by oil-producing countries; the development of powerful, polluting and dangerous motor vehicles for their owner’s enjoyment; the development of genetically-modified foods for commercial purposes; the unnecessary transport of foods across continents, adding to the pollution and global warming; currency speculation – an international casino in which unscrupulous traders destroy the economies of whole nations; multi-national trading by powerful companies, which destroys local cultures and gains profits by avoiding national controls; the siting of polluting factories close to human populations. The list could go on….

The mantra of freedom and the market economy:

There is a belief in freedom – but freedom for its own sake, without responsibility, without compassion . . . “Politicians promote a market economy as if it were a good thing but I saw that it was at the root of the cycle of destruction. Left without controls, it leads to competition and materialism, acquisitiveness spreading like a cancer, greed, the exploitation of one group, nation, or species by another, the concomitant resentment triggering jealousy and wars, with the end result being the ultimate destruction of our beautiful world by selfish people. Rather than assessing needs to develop standards, values and strategies, the vagaries of the market determine priorities and direction, so that the rich benefit at the expense of the poor, as well as at the expense of the planet…..”

2. We comfortably accept gross inequality: says India’s Mari Marcel-Thekaekara (1999)

“We were hit by the reality of the poverty surrounding us in Glasgow: “Most of the men in Easterhouse hadn’t had a job in 20 years. They were dispirited, depressed, often alcoholic. Their self esteem had gone. Emotionally and mentally they were far worse off than the poor where we worked in India, even though the trappings of poverty were less stark. We’d fallen into the trap of looking at poverty only from the point of view of material benefits. The Easterhouse people looked better-off than the Asian poor, but in reality they suffered as much social deprivation. The Easterhouse men who’d been jobless for twenty years felt far more helpless than people in India who scrabbled in garbage heaps to sell scrap metal, paper and rags to feed their children. Both groups were at the bottom of society”.

3. We still see the lordly disdain and defensive disapproval of an upper and middle-class generation: prosperous without much effort: Libby Purves – The Times, Comment: 7.9.99 (no link available):

“Many of these good little 1950s boys and girls in Clarks sandals appear to have grown up into the very people who

  • get rich by feeding pornographic violence (“ironic” and otherwise) to modern children,
  • who created the step-parent and weekend~access culture,
  • who use compu­ter games and junk television as a babysitter
  • and who gaily abandoned both family meals and any, attempt to police their adolescents’ social lives.

“Moral decline” is intimately tied up with economic decline and blocked opportunities. The under-class culture of surly disaffection is mirrored by the lordly disdain and defensive disapproval of a middle-class generation that are prosperous without much effort. Harsh cries of “On your bike! To the job centre! Abort that baby immediately! Go to prison!” will not do the trick. It will take investment (but the Exchequer is awash with money, compared with recent decades). It will take infrastructure, understanding, doggedness. Unlike the cynics, I do not mind Mr Blair talking morality and vision and the big idea. I just long to see him do something about it”.

4. We are increasingly “politically correct, image-led, crony-run, promptly obsolescent, fragmented, pseudo-democratic, media-conscious, user-friendly corporately sponsored, celebrity-endorsed and of little consequence”: Graham Lane, Independent on Sunday: 16.1.00:

“The Dome is clearly the perfect metaphor for our age”: technology-driven, superficially educated, culturally hybrid (somewhere between shopping mall and theme park), designer-green, politically correct, image-led, crony-run, promptly obsolescent, fragmented, pseudo-democratic, media-conscious, user-friendly corporately sponsored, celebrity-endorsed and of little consequence”.

5. We have, in general, lost the principles of chivalry, self-restraint, service to others: Dr Peter Mullen

“A Spectator debate was held in 2007, the motion being “We should not be reluctant to assert the superiority of Western values”. “But what are these values?” asks Dr Peter Mullen (scroll down to his letter). His answer: “Lowbrow hedonism, sex & shopping, abortion on demand – in fact as a means of contraception, a lewd and trivial entertainments industry and a vile popular culture. What we are seeing is not a society that differs a morally serious challenge to militant Islam, but one which has lost its nerve and the principle of chivalry, self-restraint, service to others and examination of one’s own conscience”.

He asks: “Who does Whitehall serve?”

6. The political-corporate “buddy system”: an answer from the FT’s Elizabeth Rigby, 2011

“Vince Cable, business secretary, is to champion the interests of Britain’s oil and gas sector overseas as part of a push within government to boost the UK’s export market as well as attracting inward investment. Lord Green, the trade minister, has been working for months on plans to pair ministers with dozens of top companies in the UK, as he seeks to inject more commercial prowess into Whitehall. Under the scheme, unveiled in February, David Willetts, the universities and science minister, will be looking after life science companies such as GlaxoSmithKline, Novartis and AstraZeneca. Jeremy Hunt, the culture secretary, will be working with the information and technology sector, while Mark Prisk, the enterprise minister, will be the point person in Whitehall for the car industry.

“The government first flagged that it would be pairing top exporters with ministers in February when Lord Green and Mr Cable unveiled a white paper aimed at enlarging Britain’s export markets. “Ministers will play an active role in developing and sustaining winning relationships with investors, as well as the UK’s top exporters,” said the UK Trade and Investment strategy paper. “These customers will be able to call on expertise and resources across government to ensure they receive a seamless ‘one-stop’ service”.

This “buddy system” is just one of a number of measures the government is putting in place to increase exports.

And only now, with the advent of Jeremy Corbyn, do we see any hope of a better future.