Category Archives: Parliamentary failure
George Monbiot recently pointed out that the Commons report on the Carillion fiasco is one of the most damning assessments of corporate behaviour parliament has ever published. It trounces the company’s executives and board and laments the weakness of the regulators.
But, as Prem Sikka said in his April article, it scarcely touches the structural causes that make gluttony a perennial feature of corporate life.
Both agree that the problem begins with an issue the report does not once mention: the extreme nature of limited liability. Sikka points out that this system, under which executives are only financially accountable for the value of their investment, has also benefited frauds and led to the self-enrichment of executives at the expense of workers, consumers, creditors, pensioners and citizens.
Monbiot adds that the current model of limited liability allowed the directors and executives of Carillion to rack up a pension deficit of £2.6 billion, leaving the 27,000 members of its schemes to be rescued by the state fund (which is financed by a levy on your pension – if you have one). The owners of the company were permitted to walk away from the £2 billion owed to its suppliers and subcontractors. (Left: the former Carillion chief executive Keith Cochrane in Westminster after appearing before the Commons work and pensions select committee)
Monbiot continues: “There is no way that fossil fuel companies could pay for the climate breakdown they cause. There is no way that car companies could meet the health costs of air pollution. Their business models rely on dumping their costs on other people. Were they not protected by the extreme form of limited liability that prevails today, they would be obliged to switch to clean technologies”.
So what is to be done?
Prem Sikka (right) proposes that the bearers of unlimited risks and liabilities should be given rights to control the day-to-day governance and direction of companies.
He advocates including employees and citizen/consumers on company boards – because both ultimately have to bear the financial, health, social and psychological costs associated with environmental damage, pollution, poor products, industrial accidents, loss of jobs, pensions and savings. Through seats on company boards, they could secure a fairer distribution of income, challenge discrimination, curb asset-stripping and influence investment, training and innovation.
Across the 28 European Union countries (plus Norway), most have a statutory requirement for employee representation on company boards – unlike the UK, Belgium, Bulgaria, Cyprus, Estonia, Italy, Latvia, Malta and Romania.
George Monbiot proposes a radical reassessment of limited liability.
He points out that a recent paper by the US law professor Michael Simkovic proposes that companies should pay a fee for this indemnity, calibrated to the level of risk they impose on society. He adds, significantly, that as numerous leaks show, companies tend to be far more aware of the risks they inflict than either governments or the rest of society. Various estimates put the cost that businesses dump on society at somewhere between 4% and 20% of GDP
His own ‘tentative’ and ingenious proposal is that any manager earning more than a certain amount – say £200,000 – would have half their total remuneration placed in an escrow account, which is controlled not by the company but by an external agency. The deferred half of their income would not become payable until the agency judged that the company had met the targets it set on pension provision, workers’ pay, the treatment of suppliers and contractors and wider social and environmental performance. This judgement should draw on mandatory social and environmental reporting, assessed by independent auditors.
If they miss their targets, the executives would lose part or all of the deferred sum. In other words, they would pay for any disasters they impose on others. To ensure it isn’t captured by corporate interests, the agency would be funded by the income it confiscates.
Monbiot then says “I know that, at best, they address only part of the problem” and asks, “Are these the right solutions?
- support them,
- oppose them
- or suggest better ideas.
He ends: “Should corporations in their current form exist at all? Is capitalism compatible with life on earth?”
Natural England – sponsored by the Department for Environment, Food and Rural Affairs – is responsible for ensuring that England’s natural environment, including its land, freshwater and marine environments, geology and soils, are protected and improved.
The Farmers Guardian reported that in 2016 Natural England’s payment record was rated even worse than that of the Rural Payments Agency (RPA) as it also failed to deliver the required Countryside Stewardship payments for work already done.
Its performance did not improve in 2016; farmers were kept waiting for their first Countryside Stewardship payment. Though Natural England had pledged to make advance payments to 2016 mid-tier and higher-tier scheme holders between November 2016 and January 2017, with final payments due between January and June 2017, the NFU said exasperated members were calling the union demanding to know why their payments had not arrived. Farmers Weekly understood that ongoing delays in processing payments were because of problems with IT systems and processes at Defra.
A spokeswoman for Natural England declined to comment on the number of 2016 scheme payments already made.
FW added that farmers are yet to receive the first tranche of their 2017 payments for work done. Parliament’s Public Accounts Committee was scathing in its criticism of the RPA’s failure to distribute basic farm subsidies whilst requiring prompt applications from farmers (below left).
The extent of the Rural Payments Agency’s failure to pay farmers in England on time and in full is now clear. The RPA paid only 38% of farmers under the Basic Payment Scheme on 1 December 2015—first day of the payment window—compared with over 90% in previous years.
By the end of January this had risen to 76%, but at the end of March 2016 there were still 14,300 farmers (16%) who had not received any payment.
Government agencies should honour their own injunction: don’t leave it too late.
Over 10,000 farmers who had received a payment had not been paid in full. Two thirds of the additional payments made to these farmers were in excess of €1,000 and were first paid in September 2016, over 9 months after the first payment should have been received.
Farmers Weekly reported in February this year that the RPA boss was ‘blasted’ over farm payment delays and mapping.
At a NFU council meeting on 30th January at Stoneleigh Park, Warwickshire, farmers took RPA’s chief executive Paul Caldwell to task over BPS payment delays. More than one in 10 farmers are still waiting, according to an NFU survey (see “Survey uncovers extent of delays” right) – although the RPA’s own statistics suggests that figure is nearer to one in five. NFU vice-president Guy Smith said: “When you look at current payment performance and the levels of outstanding issues from previous years you could describe the RPA as ‘just about managing’.
In March 2017, having received what Miles King described as a ‘verbal beating’ (Countryside Stewardship in front of the EFRA committee) Guy Thompson, Chief Operating Officer, left Natural England and now works for Wessex Water.
Natural England announced in the autumn that it would increase first tranche payments, traditionally paid in the autumn, from 50% to 75%, with the remaining 25% following later, reflecting payment reductions or penalties.
Missing payments have reduced cashflow, leading some to take out bank loans
According to farm leaders, many claimants are still waiting for that first payment, with some now being forced to take out bank loans because of their resulting cashflow difficulties. Max Sealy, NFU county delegate for Wiltshire and a consultant with the Farm Consultancy Group, said some farms were waiting for substantial sums of money for work which they had already completed.
“What we need is clarity on the situation and better communication,” he said. But a Natural England spokesperson declined to clarify how many payments were still outstanding and when farmers could expect to see them.
Farmers who have signed up to Countryside Stewardship, or still have an old Higher-Level or Entry-Level Stewardship agreement, have yet to receive the first tranche of their 2017 payments. Farmers Weekly reports that farmers want to know when they can expect to receive their agri-environment scheme payments, with ongoing delays leading to budgeting problems and growing resentment about the way the schemes are being managed.
The Farmers Guardian then reported that Defra is to transfer delivery of the Countryside (agri-environment) Stewardship scheme from Natural England to the Rural Payments Agency (RPA) – more confusion?
NFU Deputy President Guy Smith (right) said:
“The Countryside Stewardship scheme has been plagued by poor delivery from its launch in 2015 and the NFU has been raising these concerns from day one. It seems almost every day we have complaints from members about the muddled application process, wrong maps, moving goalposts, late start dates and delayed payments. All this has undermined farmer confidence in the schemes leading to very poor uptake. Plans to improve delivery have to be welcomed but until we see improved delivery we will withhold judgement.
“I know many farmers will not be reassured that delivery is moving from NE to the RPA, which is notorious among farmers as the organisation which comprehensively screwed up the payment of the as then new Basic Payment Scheme back in 2014. A highly complex new IT system was commissioned to enable farm payments to be moved online. 7 years later the system is still not working properly.
Conservationist Miles King went further, calling for the abolition of the Rural Payments Agency before the introduction of the government’s England Agriculture Policy which is expected to be published this spring: “We need a publicly-funded independent champion for nature (as Natural England was intended to be when it was set up) and a new body which will deliver the public goods for public money”.
The rational case against metro mayors ably set out by Richard Hatcher, George Morran and Steve Beauchampé, has been shattered for the writer by the media-feeding chaotic, emotion-led, vicious, counterproductive squabbling in the Labour & Conservative ranks.
Still, evidently, a tribal people, we appear to need the ‘high-profile leadership’ extolled by Andrew Carter, chief executive of the Centre for Cities , largest funders Gatsby Charitable Foundation (Lord Sainsbury) and Catapult network, established by Innovate UK, a government agency. (see report cover right)
As yet, the announcements made by the West Midlands metro mayor Andy Street, respected even by most opponents of the post, with a business record seen as a guarantee of efficiency, are provoking little dissension.
Dan Jarvis, who is expected to win the Sheffield election becoming Britain’s seventh metro mayor, intends to continue to sit in the House of Commons to work for a better devolution deal and speak for the whole county. (map, regions in 2017)
His desire to stay in parliament while serving as a mayor is thought, by the author of FT View, to reflect a recognition that the real authority and power of these positions is limited:
- The six mayors have no say on how taxes are raised and spent.
- Outside Greater Manchester, the mayors have little control over health policy.
- Major spending decisions on transport policy are still taken by central government.
Days after taking office in Greater Manchester, Andy Burnham’s announcement of a new fund to tackle the region’s homelessness problem was backed by ‘a chunk’ of his own mayoral salary.
Andrew Carter points out that England’s mayors are highly constrained in their control over local tax revenue and how it is spent, compared with their counterparts in other countries.
FT View describes this extra layer of government as yet merely creating cheerleaders, adding:
“Voices alone will not be enough to shift economic and political power to the regions. England’s mayors need more control. If the government is serious about devolution, the mayors need the powers to match that ambition”.
Could well-endowed, unsuborned metro mayors out-perform successive corporate-bound national governments?
The following 2004 broadside was fired by Lord Steyn, described in his Times obituary as an “Outspoken law lord whose liberal views became a thorn in the side of the Blair government, especially over Iraq and Guantanamo Bay”, following Lord Hoffmann’s suggestion that the courts should not interfere with certain Government decisions.
“Courts must never abdicate their duty to protect citizens from the abuse of power by governments . . .The United States government has already created a hellhole of utter lawlessness at Guantanamo Bay by committing such abuse.”
Lord Steyn was born and bred in Cape Town and was one of the few native Afrikaaners who fiercely opposed apartheid. He won a Rhodes scholarship to read English at University College, Oxford and after being called to the bar and sitting as senior counsel in South Africa’s supreme court emigrated to Britain in 1973 to start on the bottom rung of the legal ladder.
Though English was not his native language, his Afrikaans accent remained thick and his ‘delivery’ in court was hesitant, he was admired for his clear arguments and his skill in cross-examination. Having served as the presiding judge on the Northern Circuit, Steyn moved to the Court of Appeal in 1992. He was made a life peer in 1995.
A detainee from Afghanistan is carried on a stretcher before being interrogated by military officials at Camp X-Ray at the U.S. Naval Base in Guantanamo Bay, Cuba (Telegraph 2016)
In 2003 he accused the home secretary, David Blunkett, of using “weasel words” to justify his policy on asylum seekers. Five months later, Steyn branded the US regime at Guantanamo Bay “a monstrous failure of justice” and declared that the system of trial by military tribunal was no more than a “kangaroo court” that “makes a mockery of justice”.
The unkett then blocked his appointment to a House of Lords judicial committee
The senior law lord, Lord Bingham of Cornhill, was asked not to include Steyn on the nine-judge panel to decide on the legality of detaining foreign terror suspects without trial – the first time a government had ever sought and obtained an alteration in the composition of the House of Lords’ judicial committee.
His other achievements include:
- being one of the judges who ruled by a 3-2 majority that the former Chilean dictator Augusto Pinochet was not entitled to claim sovereign immunity from prosecution;
- reproving Lord Irvine of Lairg, the lord chancellor who sought ‘an unfettered right to impose rule changes on the legal profession; “He is a member of the executive carrying out the party political agenda of the Labour administration. He is a politician. To entrust to a cabinet minister the power to control the legal profession would be an exorbitant inroad on the constitutional principle of the separation of powers”;
- claiming, when Britain introduced executive detention without trial in 2001, that the UK opt-out from the European Convention on Human Rights was not justified “in the present circumstances”.
- arguing, as chairman of Justice, the human rights group, that the Iraq War was unlawful and said that, “in its search for a justification in law for war, the government was driven to scrape the bottom of the legal barrel”;
- dismissing Tony Blair’s suggestion, just months after the 7/7 bombings in London in 2005, that the war had not made London a more dangerous place as a “fairytale”.
A champion of the Human Rights Act 1998, he retired satisfied that it had already “transformed our country into a rights-based democracy”. Hmm . . .
Anthony Lester, QC, wrote: “He has woven the Human Rights Act into the fabric of our legal system. He has a terrier-like tenacity and the courage of a lion. He’s going to be extraordinarily difficult to replace.” Agreed.
“100 tenants a day lose homes as rising rents and benefit freeze hit” – The Observer July 2017.
In the same month, a Joseph Rowntree Foundation study attributed 80% of the recent rise in evictions to the “no fault” process under section 21 of the Housing Act 1988.
Two months’ written notice is all that private landlords need to do: they don’t need to give any reason when they ask tenants to leave.
It allows the worst landlords to ignore disrepair – tenants who complain are given notice – a process officially recognised under the name ‘retaliatory eviction’.
Read more about retaliatory eviction’ – the subject of Commons Briefing paper SN07015 by Wendy Wilson – published on June 13, 2017.
Jeremy Corbyn raised the issue forcefully in Wednesday’s Prime Minister’s Questions
Mr Corbyn reviewed the government’s record:
- Homelessness is up by 50% and rough sleeping has doubled. Homelessness and rough sleeping have risen every single year since 2010.
- Evictions by private landlords have quadrupled since 2010. There is no security in the private rented sector.
- One-for-one replacement of council housing sold off through the right to buy was promised, but just one in five council homes have been replaced.
- Hundreds of thousands of people are on housing waiting lists.
Campbell Robb, chief executive, said: “With the possibility of eviction with just two months’ notice, and constant worries about when the next rent rise will hit, the current rental market isn’t giving people – particularly families – the stability they need to put down roots. The stable rental contract offers renters a five-year tenancy and gives landlords more confidence in a steady income, all within the existing legal framework”.
Scotland for best practice to date: the Scottish secure tenancy
In Scotland, under Jack McConnell’s Labour government, by an order under section 11 of the 2001 the Housing (Scotland) Act tenants of local authorities, housing associations & tenants who are members of fully mutual co-operative housing associations, from 30 September 2002, became Scottish secure tenants.
Read the excellent terms here. Will a Labour government in this country adopt this Rolls Royce standard model and also introduce a stable rental contract for those in private accommodation? Or will the profit motive win the day?
Paul Simons adds to many ‘wakeup calls’ – writing about high temperatures, drought and wildfires.
May and June were also phenomenally hot across Portugal, Italy, the Balkans, Greece and Turkey.
Heat and drought have helped to fuel wildfires in Spain and Italy, and wildfires near the seaside resort of Calampiso in Sicily forced the evacuation by boat of about 700 tourists on Wednesday night. In Greece the heatwave led the culture ministry to close archaeological sites around the country, including the Acropolis in Athens.
Together with a long-running drought, the heat has ravaged much of southern Spain, leading to a devastated wheat and barley harvest. If the arid conditions continue, there are also fears for the olive, walnut, almond and grape harvests and the wellbeing of livestock. Rainfall has been desperately low this year, but the country has been suffering from a lack of rain for five years.
Drought threatens to reduce cereal production in Italy and parts of Spain to its lowest level in at least 20 years, and hit other regional crops. Castile and Leon, the largest cereal growing region in Spain, has been particularly badly affected, with crop losses estimated at around 60 to 70%. While the EU is collectively a major wheat exporter, Spain and Italy both rely on imports from countries including France, Britain and Ukraine.
Deadly heatwaves for much of South Asia – yet many of those living there will have contributed little to climate change
The Guardian adds to the news from Europe: India recorded its hottest ever day in 2016 when the temperature in the city of Phalodi, Rajasthan, hit 51C. Another study led by Prof Elfatih Eltahir, at Massachusetts Institute of Technology in the US, linked the impact of climate change to the suicides of nearly 60,000 Indian farmers.
The analysis, published in the journal PNAS, assesses the impact of climate change on the deadly combination of heat and humidity, measured as the “wet bulb temperature” (WBT). Once this reaches 35C, the human body cannot cool itself by sweating and even fit people sitting in the shade will die within six hours.
Prof Chris Huntingford, at the UK Centre for Ecology and Hydrology, said: “If given just one word to describe climate change, then ‘unfairness’ would be a good candidate. Raised levels of carbon dioxide in the atmosphere are expected to cause deadly heatwaves for much of South Asia. Yet many of those living there will have contributed little to climate change.”
Guardian journalists comment sarcastically, “But fear not: by 2040, no new diesel or petrol vehicles will be sold in the UK
This, apparently, is the appropriate timetable for responding to what a parliamentary committee calls a “public health emergency”. A child born today will be 23 by the time this policy matures – by then the damage to the development of her lungs and brain will have been done”.
According to Professor Eltahir’s study, if emissions are reduced roughly in line with the global Paris climate change agreement there would be no 35C WBT heatwaves and the population affected by the 31C WBT events would fall from 75% to 55%. About 15% are exposed today.
A National Geographic article says most people agree that to curb global warming a variety of measures need to be taken. On a personal level, driving and flying less, recycling, and conservation reduces a person’s “carbon footprint”—the amount of carbon dioxide a person is responsible for putting into the atmosphere.
At present, lorries shifting identical goods in opposite directions pass each other on 2,000-mile journeys. Competing parcel companies ply the same routes, in largely empty vans – a theme explored by MP Caroline Lucas and Colin Hines in 2003 – the Great Trade Swap.
It describes airports as deadly too – yet government and opposition alike are ‘apparently hell-bent’ on expanding Heathrow, exploring airport expansion projects elsewhere and seeking post-Brexit trade deals with distant countries.
To reduce the risk of ever more extreme weather, we must reduce the amount of fossil fuel we are burning – and the measures taken will have other desirable consequences as the following cartoon shows:
Parliament must listen to its Committee on Climate Change – chairman John Gummer. As the East Anglian Times reported in June, its annual progress report calls for “urgent” plans to meet legal targets for carbon cuts by 2032 as greenhouse gases from transport and buildings continue to rise.
The committee advocates action to bridge the gap between existing policies and what is needed to achieve required emissions reductions by the mid-2020s – boosting electric vehicles and cutting greenhouse gas emissions from the heating of homes to help to meet UK climate targets.
Broken Britain 7: prolonged, tragic sagas: infected blood transfusions, OP poisoning and Gulf War Syndrome, denial and delay, pending death
The Haemophilia Society has blown the whistle and called for an enquiry into its own failure and that of government, pharma and clinicians. More here.
Medics and politicians knew by the mid-1970s that commercially manufactured blood products from the USA were suspect. By the mid-1980s there were warnings of a similar situation in respect of HIV. Nevertheless these products continued to be imported and used – just as OP sheep dips were.
British haemophiliacs and other victims’ lives were blighted in the 1970s and 1980s by these cheap imported US blood products, harvested from inmates and drug addicts. More than 7,000 were infected and went on unknowingly to infect family
Last week in The Times, Margarette Driscoll recalls that in 2015, following the Penrose report into contaminated blood products in Scotland (which many victims denounced as a whitewash), David Cameron apologised to those who were infected by HIV and hepatitis C.
References to “compensation” have been changed to “payments” – to avoid admitting the liability which is already common knowledge? The sums received by victims of the contaminated blood scandal are known as ex gratia payments.
In April, as he left the Commons, the former health secretary Andy Burnham declared there had been a “criminal cover-up on an industrial scale in the NHS” over contaminated blood and called for a Hillsborough-style inquiry.
Diana Johnson, Labour MP for Kingston upon Hull North, has been campaigning on the issue since she met one of her constituents, a mild haemophiliac who was given factor VIII in 1983 to prevent excessive bleeding when he had a tooth removed in hospital. He discovered he was infected with hepatitis C in 1995, when it showed up on blood tests for an unrelated illness.
As Theresa May had set up the Hillsborough inquiry when she was home secretary, Johnson was hopeful she would do the same for contaminated blood.
May refused. Johnson requested an urgent Commons debate, which was due to be held on Tuesday. She then got the six leaders of the opposition parties — including the DUP — to sign a letter to Ms May asking for an inquiry, and this is to be set up.
Adding insult to injury? Payment to many victims of NHS blood contamination is to be cut
In March this year a scheme to pay the victims of NHS blood contamination is to be scaled back under government plans announced on Monday. Ministers believe the reforms are necessary because more people are now considered likely to develop serious health issues – and be entitled to higher payouts – pushing the programme as much as £123m over budget.
The government has proposed measures that would cut predicted costs, including limiting the availability of the higher level of financial support under the scheme
Will an enquiry compensate the victims of this NHS for the cuts?