Category Archives: Finance

Labour, Conservative and Green voices call for a progressive alliance. Will it happen now or later?

An audience seriously considering the proposal

With thanks to the reader working in Uganda who sent the Hitchens link and remembering another who yesterday advocated ABC voting, ‘Anything But Conservative’.

Peter Hitchens insisted, some time ago, that a lot of people feel left out of the recovery we are supposed to be having, and they need a powerful voice in Parliament, adding:

“There is nothing good (or conservative) about low wages, insecure jobs and a mad housing market which offers nothing but cramped rooms and high rents to young families just when they need space, proper houses with gardens, and security . . .

“The truth is that both major parties have been taken over by the same cult, the Clinton-Blair fantasy that globalism, open borders and mass immigration will save the great nations of the West. It hasn’t worked. In the USA it has failed so badly that the infuriated, scorned, impoverished voters of Middle America are on the point of electing a fake-conservative yahoo businessman as President”.

Hitchens concludes that many Labour MPs have more in common with Mrs May than with Mr Corbyn and will ‘snuggle up beside her absurdly misnamed Conservative Party’.

He believes that the British public will at last see clearly that their only response is to form an alliance against the two big parties: “Impossible? Look how quickly this happened in Scotland”.

This Green House pamphlet with contributions from Molly Scott Cato MEP, Victor Anderson, Rupert Read, Jonathan Essex and Sara Parkin was written before the EU referendum and the economic and political turmoil which has followed but the authors believe its analysis and conclusions are still valid.

In her introduction, MEP Molly Scott Cato points out that a route to a more positive future offering hope to the majority of citizens is blocked by our archaic and unrepresentative electoral system which enables one party to control so much power with a minority of the votes cast. She continues:

“Our primary target is our electoral system. In the 2015 general election the Green Party received 1 million votes but only one parliamentary seat. By contrast the Scottish National Party received 1.5 million votes and 56 seats.

“This is the logic of first past the post . . . but as voters move into a multi-party future the system entrenches political stasis and blocks progressive change”. Later she cites Germany as the most striking example of a country that has benefited from Greens in power:

“Its industries are successful because Greens in government encouraged them to move into the new era of low carbon energy production before other European countries. Germany has turned its back on the nuclear age and is rapidly phasing out fossil fuels. Germany is the economy in Europe that is benefiting most from the energy transition that dangerous climate change requires of us. It is Greens in government who enabled this process”.

She, and other Green House members invite everyone who wants to see an alternative to continued Conservative government to join in the discussion about what that alternative can be.

Professor Jeremy Gilbert, in a Compass article, spells out the proposal, advocating a co-ordinated response involving every potentially progressive organisation and party in the country. He asks:

“Do you really think we can stand up to May, Murdoch and the Mail, to the City, the CBI and consumer-industrial complex all alone?

“Labour is never going to be back on 44% in the opinion polls. The electorate is too fragmented for that, and above all Labour’s electoral base is too fractured for it ever to happen again”.

(Ed: we note that the British Labour Party is already one of the parties and organisations from over 90 countries which participate in the International Progressive Alliance network of social-democratic and progressive political parties.)

Gilbert continues: “Would you rather it happen now, while the Left retains the leadership of the party, or in five or ten years time, when the Right is back in control? Would you rather have a Progressive Alliance, or an alliance of revanchist Blairites, (May)ites and ‘Orange Book’ Liberal Democrats? Because if we do not seize the initiative now, then the latter is what we are going to get, soon enough. This is going to happen sooner or later”.

 

 

 

 

Focus on cuts – 5: the poorest targetted

A reader from Bournville draws attention to an article by Jules Birch in Inside Housing, a weekly magazine for housing professionals. He focusses on a recent TV Panorama programme about the benefit cap that now leaves thousands of people with 50p a week towards their rent.

He noticed that roughly 95% of tweets with the hashtag #benefitcap (scroll down to April 7) were hostile to the people featured in the programme rather than the policy. The majority of people commenting on Twitter were seeing the undeserving individual instead: the stroppy single mother with a mobile phone and the couple with many children. He notes that exactly the same thing happened with Benefits Street, How to Get a Council House and a Dispatches documentary on the cap last month.

Part of the problem, he believes, lay with the way Panorama framed the issue. As Joe Halewood was quick to point out, the programme and its advance publicity seemed to assume that most people capped are unemployed and on Jobseeker’s Allowance, when in fact just 13% are.

The fact that the vast majority of people capped are either unable to work or not required to work was only raised tentatively halfway through the programme. Most of those capped are lone parents with young children who are not required to look for work, or people on Employment and Support Allowance who do not qualify for an exemption but are still not fit for work.

David Pipe explained the effects in a piece following the Dispatches documentary last month. 7,500 households across 370 local authority areas have lost their housing benefit and are now receiving just 50p a week to pay their rent. The cap leaves a nominal amount for housing benefit or Universal Credit once someone’s benefits total more than £20,000 (£23,000 in London). In effect it is imposed on top of the rest of the benefits system.

The latest budget highlighted cuts for the poorest 18-21-year-olds, who will no longer be entitled to help with their rent through Universal Credit from April 1.

For many, Discretionary Housing Payments (DHPs) are the only thing keeping them in their home and the effect over time will be rising rent arrears and evictions and allocations policies that make it less likely that people on benefits will get a tenancy in the first place. So where and how can the poorest people live? Even people in caravans are being capped, and what will the knock-on costs be in terms of homelessness and the impact on the children?

Meanwhile in Broken Britain, the May government continues the policies of its predecessors and makes decisions which seriously afflict the poorest and greatly benefit the richest: the arms traders, Big Pharma, the privatised utilities, large developers, car manufacturers, private health companies and expensive, inefficient outsourcers – Serco, G4s and Capita.

 

 

 

 

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.”

 

 

 

 

Taxpayers unwittingly fund GM trials as the prospect of leaving wiser European counsellors looms

Will agri-business be allowed to charge ahead, imposing genetically modified food on an unwilling public?  

This is Rothamsted research centre, one of the country’s largest agricultural research stations.

The work is publicly funded through a £696,000 grant from the government’s UK Biotechnology and Biological Sciences Research Council and $294,000 from the US Department of Agriculture. Other partners include the universities of Lancaster and Illinois.

https://gmandchemicalindustry9.wordpress.com/2017/03/29/taxpayers-unwittingly-fund-gm-trials-as-the-prospect-of-leaving-wiser-european-counsellors-looms/

 

 

 

Secret State 18: Government’s GIB and BB up for sale – or not?

In a move mirroring the 2015 proposals for the sale of the British people’s (somewhat Green) Investment Bank (GIB) Patrick Hosking, Financial Editor, has reported in the Times that another ‘secret privatisation plan’, involving the people’s British Business Bank, has been delayed by a legal challenge.

In 2015, plans to part-privatise GIB were announced by Business Secretary Sajid Javid (more detail here). The House of Commons’ Environmental Audit Committee warned this could cause the bank to lose its “green identity”, But the government predictably said “the time is right” for the bank to be privatised. CityAM reported that in February MPs questioned government over the proposed sale, expressing fears that this would be an asset-stripping venture by MacQuarrie.

However the proposals may well have been abandoned – for a time. The Murdoch Times’ suggests that ministers were ‘rattled’ by the legal challenge to the separate planned privatisation of the Green Investment Bank. Its sale to Macquarie, the Australian infrastructure investor, after talks described as ‘exclusive’ in a later post by CityAM, is going to judicial review after a challenge from Sustainable Development Capital, a rival bidder.

 

A spoke in the privatisation wheel? This challenge has affected:

  • the planned sale of a portfolio of government business loans, packaged into a ‘high-yielding listed investment vehicle’, currently owned by British Business Bank plca state-owned economic development bank established by the UK Government.
  • and the ‘planned move’ by the ubiquitous Baron Smith of Kelvin (above,centre), the Green Investment Bank chairman, to chair the British Business Bank, which has been without a permanent chairman since October.

What is going on behind the scenes? Why are the British people the last to know in our ‘vibrant democracy’? BIS declined to comment last night but a source close to the discussions is reported to have said: “It’s a bit baffling why stumps were pulled at the last moment. Everyone was all signed up for it.”

 

 

 

Trumpton and Mayhem 2*: Trump – like May – takes care of the rich, not the rust belt

In a recent post on this site, economist Martin Wolf (FT) was quoted, reminding readers of the words of Theresa May, the prime minister, in her speech to the Conservative party conference last year: “Our economy should work for everyone, but if your pay has stagnated for several years in a row and fixed items of spending keep going up, it doesn’t feel like it’s working for you.” She earnestly promised that this would change.

He continued: “Was Mrs May’s speech hypocritical? Yes”. (See MP Dawn Butler, 2nd paragraph) 

In similar vein, Jenni Russell writes:

“The president’s actions are more important than his words, and they are a betrayal of his voters

“President Trump is brilliant at diversionary tactics, whether tweets, tantrums, or executive orders that may or may not mean anything in practical terms. His speech to Congress was another in his string of conjuror’s illusions.

“Breitbart and the Trump base adored it for its promises to put American workers first, improve their healthcare, incomes and education, cut their taxes, and protect them from danger abroad and immigrants at home. Trump’s liberal critics were momentarily dazzled to find that for at least an hour the president was capable of addressing the nation in a reasonable, conciliatory tone. But we now know that Trump’s public promises and assertions are so full of contradictions that they cannot be taken either literally or seriously.

“Instead we have to scrutinise the practical consequences of the policies his team is implementing. The effect of these won’t be to transform the lives of the people he swore to champion. They will make the rich much richer at the expense of the middle class and the poor”.

She notes that Trump’s tax plan is overwhelmingly skewed towards the wealthy:

  • America’s Tax Policy Centre shows nearly half of the total tax cut will go to the top 1% of taxpayers.
  • Almost a quarter will be spent on the richest 0.1%, households that earn above $3.7 million a year.
  • The middle fifth of households, earning an average of $65,000, will gain just a thousand dollars.
  • Less than 7% of the total cost of tax cuts will be spent on them.
  • Because Trump intends to drop tax exemptions for children, some families earning less than $50,000 a year will actually see their taxes rise.
  • The budgets for education, childcare and medical research will be slashed by at least 15% per cent.
  • Trump proposes to end the state tax, which affects only the top 0.2 per cent of the population.
  • His proposed cuts to corporation tax range from 35 to 20%

This surreptitious transfer cannot be what Trump supporters expected

Jenni continues: “Trump’s promise to create jobs through a vast infrastructure plan are equally tilted towards the rich. Investors will be offered tax breaks costing $137 billion to encourage them to invest a trillion dollars in projects that offer potential returns from fees or tolls. And far from bringing jobs to depressed regions, the projects will be skewed towards wealthier areas, because there will be no incentive to invest in areas where there’s no hope of a financial return, like the crumbling roads of the Appalachians”.

Still justified by demonstrably failed trickle down theory

Republicans defend this kind of unbalanced reward as they always have, arguing that the more money individuals keep, the more they will spend and the more everyone will benefit. These policies – in addition to the cuts Trump is demanding to pay for his boom in defence spending – will add huge sums to the deficit and drastically shrink the money available for public programmes. Jenni ends:

“Trump promised to protect his voters but the gulf between what he pledged and what he’s delivering is evident everywhere. His teams are busy dismantling consumer, financial and environmental regulations that prevented ordinary people being fleeced or having their land and water defiled. His supporters stubbornly believe in him but they are being betrayed. There can only be more fear and disillusion to come”.

Meanwhile Wall Street is soaring in anticipation, with the Dow Jones breaking the 21,000 barrier for the first time within hours of the speech. That extra money will overwhelmingly go into the bank accounts of those with the most shares – and the May government now turns from squeezing the disabled to the bereaved, successfully passing drastic cuts in payments for which national insurance contributions had been made and raising probate fees.

 

*Trumpton and Mayhem: first passing reference made on Our Birmingham website by architect David Heslop, moving towards employee ownership.

 

 

 

 

Media 74: MSM wades in – hours after Corbyn’s reception at NHS rally

nhs-demo

Saturday 4th March

The BBC reported that Jeremy Corbyn called for the government to provide more funding for the health service in next week’s Budget. Speaking to the protesters in Parliament Square, he said: “The NHS is in crisis because of the underfunding in social care and the people not getting the care and support they need. It is not the fault of the staff. It is the fault of a government who have made a political choice.”

The protest organisers say the government’s proposed Sustainability Transformation Plans (STPs) across the NHS in England are a “smokescreen for further cuts” and the “latest instruments of privatisation”. These proposals involve the complete closure of some hospitals and the centralising of some services such as A&E and stroke care on fewer sites.

Deputy chairman of the British Medical Association council Dr David Wrigley said the march was “a cry for help for anyone who uses the NHS” which was “in such a desperate situation. We need to highlight it. As a doctor I see day to day the serious pressures in the NHS due to the funding cuts from the government”.

Saturday 4th March: at 6pm

The Independent featured Ben Bradshaw (former minister) praising Blair and blaming Corbyn’s leadership – ‘the one issue on the doorstep’

Saturday 4th March 11pm (updated 4am on 5th)

Nine prominent Labour MPs are reported in the Daily Mail to have complained ‘that they are heading for oblivion’ ( a little earlier a tweet on OurNHS explained why):

nhs-jmd“Unlike other politicians who spend weekends with corporate lobbyists &wealthy donors, John McDonnell is out on the street 4 the #OurNHS demo”

Sunday 5th March 4am

The Sunday Express: Corbyn in crisis – and no doubt more will come

Saturday 4th March 11pm (updated 4am on 5th)

The Daily Mail usefully quotes Ken Loach explaining why these particular MPs are disgruntled: “It was their Labour Party, not Corbyn’s, that lost Scotland, lost two elections and has seen Labour’s vote shrink inexorably. Yet they retain a sense of entitlement to lead.”

Strangest of all, the Times and FT (online editions) decide not to mention the demonstration.

The Times online did not carry its usual daily onslaught on Corbyn and the Financial Times online which regularly publishes biassed articles about JC – often by Jim Pickard – has no reference, merely a bland, skimpy article by David Laws: “UK reaches socially acceptable limits of austerity . . . the NHS needs a settlement which allows for rising demand and an ageing population”.

Their carefully selected and daily shown photographs and cartoons of the Labour Party leader are not to be seen? What does this mean?

 

 

 

Is the HS2 project the most blatant example of UK/USA’s revolving door/vested interest ridden politics?

hs2-viaductvisual

“A gravy train for consultants, involving banks, lawyers and government officials” – and industry?

Many are shocked by the hugely damaging environmental and social impacts of demolition of properties in London and homes, farms and businesses and along the proposed HS” route.

Added to this reaction is horror at news of the emerging and all-too familiar reports of conflicts of interest – a polite expression for what is a form of apparently legal corruption.

A skeletal chronological summary of news about the nominated leadership of the HS2 project and some contract awards follows, based on reports in the Financial Times, 2015-2017.

Background 2015

The Institute of Directors suggested that it would be cheaper to knock down Birmingham and build a new city 20 minutes closer to the capital, while the Institute of Economic Affairs cast doubt on HS2’s regeneration benefits, pointing out that HS1 failed to regenerate Kent, with the average employment rate in the south east of Britain 5% lower than before the high speed service was introduced.

Portugal, Poland, Spain, the Netherlands and Belgium have all cancelled planned or existing high-speed rail projects and some argue that Britain should follow suit. Martin Blaiklock, a consultant on infrastructure and energy project finance, said that extra capacity could be built more cheaply by adding to existing railways. “[HS2] is very high-risk,” he says. “It is a gravy train for consultants, involving banks, lawyers and government officials.”

Conflict of interest emerges in 2015-16 in favour of an American multinational 

revolving-door-peopleIt was reported that Roy Hill, managing director of the US-headquartered engineering company CH2M, has been seconded to HS2 acting chief executive on a temporary basis from November, after Simon Kirby, the former chief executive, elected to leave for Rolls-Royce. Mr Hill worked at HS2’s offices in Canary Wharf for CH2M between 2012 and 2014 after the company won the role of development partner carrying out preparatory work, in a contract worth about £70m.

CH2M entrenched?

In Gill Plimmer’s FT article yesterday, readers were reminded that Mark Thurston, an executive at CH2M, has now been appointed chief executive of HS2 Ltd, replacing the aforementioned Roy Hill.  He will take over in March.

David Higgins, HS2’s chairman, said he recognised the need to avoid any conflict of interest and that Mr Thurston would consequently cut all links with his previous employer. “They will be treated in the same way as any other supplier – no more or less favourably than that,” Mr Higgins said of CH2M.

CH2M has already been paid around £500m for working on the line as development partner and then the delivery partner on Phase 1 of the high-speed railway project, from London to Birmingham. Phase 2 covers Birmingham to Manchester and Leeds.

Mace, a large consultancy and construction company, which worked on the London 2012 Olympics and plans for Hinkley Point C, has written to HS2 Ltd, set up by government in 2009, announcing that it intends to challenge the decision to award CH2M, the US engineer, a contract to design the second phase of the London to Manchester line. “As a British-owned company, we were naturally disappointed with HS2’s decision and are looking closely at our options,” Mace said.

 gravy-train

Ms Plimmer states that Mace is threatening to sue the state-owned company behind Britain’s planned £56bn high-speed railway line over alleged conflicts of interest..

She quotes a source close to the legal process who said it was “extremely likely” that Mace would file a claim in the High Court this week. “Mace is concerned over conflicts of interest. It is looking for an injustice to be corrected,” the source said. “CH2M has been awarded half a billion pounds worth of contracts even though nothing has been built yet.” CH2M declined to comment.

Legal action could delay the project, which is expected to get Royal Assent this week, paving the way for construction to start this year. Final amendments to the HS2 bill are being debated on Monday in the House of Commons.

Tony Berkeley, the Labour peer and a former engineer who worked on the Channel tunnel, said the situation “smells”. “There must be other companies in the UK who are capable of doing it. Is HS2 actually competent to do the procurement or are they just relying on CH2M to do the whole thing and procure themselves?”

 

 

 

 

Wolf: Theresa May’s policies ’make a mockery of her rhetoric’. Are they also provoking ‘generational jihad’?

theresa-may-conf

Martin Wolf (FT) reminds readers of the words of Theresa May, the prime minister, in her speech to the Conservative party conference last year: “Our economy should work for everyone, but if your pay has stagnated for several years in a row and fixed items of spending keep going up, it doesn’t feel like it’s working for you.” She earnestly promised that this would change.

He continues: “Was Mrs May’s speech hypocritical? Yes”.

The work of the increasingly high-profile Resolution Foundation, a charity funded by Resolution, a successful insurance investment firm founded by Clive Cowdery, focusses on low earners and the policy responses required to lift their living standards. Cowdery was knighted in the 2016 New Year Honours for services to children and social mobility

david-willettsHowever, Resolution’s new ‘Executive Chair’ is David Willetts, a former Tory minister, described as a pioneer of generational jihad – revealing “a country that is choosing to give priority to the well-off over the poor, and the old over the young” (see https://twitter.com/resfoundation)

Wolf comments that whatever such a country might be, it is not one that, in the prime minister’s own words, acts “to correct unfairness and injustice and put government at the service of ordinary working people”.

Willetts should heed Richard Smerdon (Letters, FT): 

As I and many others can testify, millions of ageing men and women in this country are supporting their struggling children (themselves in their 30s and 40s but struggling nevertheless) in a huge variety of ways: childcare, money (in lump sums, guarantees and regular payments) and accommodation. This at a time (since the banking collapse) when returns on one’s savings have been negligible. We’ve been clobbered as well! The mess the government has got itself into over the crass handling of the tax credit issue (reform, yes, but wholesale impoverishment, no) is entirely its own fault, but many pensioners will be bracing themselves to help out yet again — which we do out of love for our children of course — but it seems an unfair additional penalty to pay for government incompetence.

Using the latest forecasts from the Office for Budget Responsibility to project household incomes up to 2020, the picture is one of rising inequality. Wolf asks, “Why is this happening?” He gives several reasons, including the impact of Brexit and the tax and benefit plans inherited and maintained by Mrs May.

Theresa May, as the Resolution Foundation puts it, is “actively choosing to increase inequality”. To those who have, the government has decided to give

The significant cuts in benefits for those of working age, notably the freeze on most benefits in cash terms are being exacerbated by the rising post-referendum prices. Also important are substantial tax cuts for the relatively well-off. FT View (editorial) adds: “By pressing ahead with these inherited policies Theresa May, prime minister, as the Resolution Foundation puts it, is “actively choosing to increase inequality”.

Wolf states: “This outcome makes a mockery of the government’s inclusive rhetoric”.

Mary Dejevsky refutes the Resolution assertions (echoed by MSM) that government is prioritising the old over the young

Wolf writes: “The government is giving priority to the well-off and the old over the poor and young”, but Mary points out that the average pensioner still has an income 25% below the average worker, adding: “You wouldn’t guess that from the media”. She points out:

“The state pension is one of the last truly contributory payments. To present it as just another handout and part of a ballooning benefits bill is an invitation to the young to resent the amount spent even more — and to the recipients to feel that they are being patronised. The state pension should be separated from the overall benefits bill forthwith”.

A graph compiled by Aegon Insurance shows that though the income gap has narrowed substantially, working households still have a higher disposable weekly income than pensioner households.

aegon-pensions

The Foundation’s latest report includes housing costs to back up its announcement that pensioner incomes (most mortgages paid) have overtaken working-age households (paying rent or mortgage charges).

A year after Mary wrote this article, the Western Daily Press reported on a study published in the Journal of the Royal Society of Medicine

“The elderly are dying from heart attacks and strokes because of the stress of cuts in their pensions, according to new research. Rising mortality rates among over 85s has been linked to reductions in spending on income support for the worst off. The study published in the Journal of the Royal Society of Medicine suggests some vulnerable older people have paid the ultimate price for austerity measures in England. Almost nine in ten of the 4.6 per cent increase in deaths in 2012 can be explained by the decline in pension credit beneficiaries, say scientists. In England, total spending on Pension Credits, income support payments for low-income pensioners, reduced by 6.5 per cent in 2012”.

Wolf concludes that the UK confronts huge challenges. Not only is productivity stagnant, it must also navigate Brexit: “It is hard to believe wise choices are being made for a country that wishes to secure a better future for its people. It is still harder to believe these are moral choices for a country forced to share out losses imposed by a massive financial crisis and weak subsequent growth” ending:

“The government may be brazenly hypocritical. But it also seems likely to get away with it”.

But the FT editorial adds a stark warning:” There is little chance of Philip Hammond, chancellor, reversing his predecessor’s regressive policies in next month’s Budget. Yet he should keep them under review. If the outlook darkens, a combination of falling living standards and rising inequality would be an extremely dangerous one in today’s febrile (Collins: intense, nervously active) politics”.

 99-3

In other words: a roused public might rock

the corporate/political boat.

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Monbiot: a ‘dark money network’ is taking power on both sides of the Atlantic

Is that news to anyone?

flagThis site and others have been focussing on this appalling phenomenon corrupting governance for years, so much so that corruption of politicians and supporting media is no longer shocking: it is the norm.

As such, frequent news of revolving doors and rewards for failure has been under-reported on this site of late – despite many significant leads from regular readers – because these items just repeat our view of the state of the nation.

However the ever-eloquent George Monbiot is more persistent

george-monbiot-3He explains: “Dark money is the term used in the US for the undisclosed funding of organisations involved in political advocacy. Few people would see a tobacco company as a credible source on public health, or a coal company as a neutral commentator on climate change. To advance their political interests, such companies must pay others to speak on their behalf”.

Though corporate America was horrified by some of Donald Trump’s positions, especially on trade, once he had secured the nomination, big money began to recognise an unprecedented opportunity.

Monbiot continues: “Trump was prepared not only to promote the cause of corporations in government, but to turn government into a kind of corporation, staffed and run by executives and lobbyists. His incoherence was not a liability but an opening: his agenda could be shaped. And the dark money network that some American corporations had already developed was perfectly positioned to shape it”.

He looks into the historical background:

statue-liberty-covers-eyes“Soon after the Second World War, some of America’s richest people began setting up a network of thinktanks to promote their interests. These purport to offer dispassionate opinions on public affairs. But they are more like corporate lobbyists, working on behalf of those who founded and fund them.

“These are the organisations now running much of the Trump administration”.

He then relates the story of MP Liam Fox

In 1997, Liam Fox founded an organisation called The Atlantic Bridge. Its patron was Margaret Thatcher. On its advisory council sat the future cabinet ministers Michael Gove, George Osborne, William Hague and Chris Grayling. Fox, who became a leading campaigner for Brexit, described the mission of The Atlantic Bridge as “to bring people together who have common interests”. It would defend these interests from “European integrationists who would like to pull Britain away from its relationship with the United States”. The Atlantic Bridge (link no longer informative) was later registered as a charity –  only after it collapsed did the full story of who had funded it emerge.

atlantic-bridge

Read the tedious and depressing details in the Guardian or on this site here.

liam_fox_1246914cHow did Fox achieve this position, after the scandal that brought him down six years ago? Monbiot explains: “The man who ran the UK branch of The Atlantic Bridge was his friend Adam Werrity, who  . . . carried a business card naming him as Fox’s adviser but was never employed by the Ministry of Defence, joined the secretary of state on numerous ministerial visits overseas, and made frequent visits to Fox’s office”.

The Charity Commission investigated The Atlantic Bridge and determined that its work didn’t look very charitable. It had to pay back the tax from which it had been exempted (Hintze picked up the bill) and the trustees shut the organisation down. Monbiot continues; “As the story about Adam Werrity’s unauthorised involvement in the business of government began to grow, Fox made a number of misleading statements. He was left with no choice but to resign”.

As the Financial Times reported, the election of Donald Trump transformed the fortunes of Liam Fox: he is back on the front bench, with a crucial and sensitive portfolio – Secretary of State for International Trade – an indispensable member of Theresa May’s front bench team: “The shadow diplomatic mission he developed through The Atlantic Bridge plugs him straight into the Trump administration”.

Taking back control from Europe means closer integration with the US

president-rooseveltMonbiot adds that European laws protecting the public interest were portrayed by Conservative Eurosceptics as intolerable intrusions on corporate freedom and the transatlantic ‘special relationship’ is a relationship between political and corporate power. He ends with the following warning, sent by President Franklin Roosevelt in 1938 to the US Congress:

“The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism”.

Monbiot adds “It is a warning we would do well to remember”.