Category Archives: Party funding
Conservative commentator: ‘Cosying up to big donors’ is not a ‘good look’: many a true word spoken in jest
In the Times today, Tim Montgomerie, co-founder of the Centre for Social Justice and creator of the Conservative Home website warns: “Tories must beware cosying up to big donors . . . the dependence of the party on chief executive chequebooks is bad politics and makes it vulnerable to populist entryism”
He cites the persistence of Jeremy Corbyn’s support despite the media onslaught, commenting that voters who are desperate for a new economic settlement seem (bewilderingly) willing to forgive or at least overlook (alleged) weaknesses that would have been electorally fatal until recently.
He points out the surge in revenue from Labour’s half a million or so members, which means that the party is getting almost as much money from individuals as it receives from the unions and continues: “The Tories enjoy no such diverse spread of funding”.
While “Corbyn’s coffers” were filled with £16 million of funds from individual supporters, the 124,000 Tory members contributed less than £1 million to their party’s treasury. Over £7 million came from ‘high-net-worth donors’ and big gifts came from dining clubs, at which rich individuals are able to sit down with Mrs May and other cabinet ministers. Montgomerie continues:
“Chasing high rollers has at times led the party to become entangled with former associates of Vladimir Putin. That is not a good look”.
Mrs May’s successor and the nation’s prime minister will be chosen by party members but Montgomerie sees the danger of ‘entryism’. Arron Banks, the businessman who financed Nigel Farage’s Brexit campaign has launched a drive to recruit 50,000 Ukip-inclined supporters to join the Tories.
The support for capitalism is not what it was and deservedly so
Montgomerie advocates building a broad and diverse membership which understands that things are different from the 1980s, when Margaret Thatcher reaped great political rewards from being close to the nation’s wealth-creators:
- The banks have paid an estimated £71 billion in fines, legal fees and compensation since the 2008 crash.
- Inflated house prices owe much to the power of a few major builders to restrict the supply of new homes.
- The service of some privatised railway companies is poor.
- The pay awards enjoyed by many leading chief executives are unjustifiable.
He adds that the Tory mission today should be the protection of the “little guy” from any concentration of power, whether in commerce, media or the state
He comments “There are some signs that the government gets this”; the apprenticeship levy for example, which is attempting to address “the decades-long failure of British industry to invest in the skills of their workforces”.
Montgomerie concludes that British politics is not corrupt but distorted
By accepting funding and spending so much time with donors from the City and with property developers, the Tories are in danger of being held back from building an agenda that is less southern and more focused on consumer empowerment than producer privilege.
He and his ilk are incapable of understanding the persistence of Jeremy Corbyn’s support despite the media onslaught. Those voters who are ‘desperate for a new economic settlement’ also recognise the character of the man, whose policies are based on justice, not perceived electoral advantage.
The last word is given to Andrew Scattergood (FBU) who sees more clearly than Montomerie: “Jeremy Corbyn has, since first elected as leader, established himself as by far Labour’s best leader, perhaps since Keir Hardie, representing the aims and values of the vast majority of the party membership”.
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?”
Is that news to anyone?
This 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
He 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:
“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.
Read the tedious and depressing details in the Guardian or on this site here.
How 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
Monbiot 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”.
Post truth: ‘for the birds’ ?
With thanks to Tom Rigby (above) – known for his effective advocacy on behalf of farmers poisoned by use of government-required organophosphate sheep dips (latest reference) – who often offers worthwhile Twitter feeds. Today one led to a rare challenge to the widespread acceptance of assertions that we live in a “post-truth” world.
He links to an article by Robert Fisk (‘always worth reading’) who bluntly asserts: “We do not live in a “post-truth” world, neither in the Middle East nor in the West – nor in Russia, for that matter. We live in a world of lies. And we always have lived in a world of lies”.
Rune Møller Stahl’s PhD fellow at University of Copenhagen, Department of Political Science and Bue Rübner Hansen is a postdoctoral fellow at Aarhus University, Denmark explore the subject in Jacobin: a voice of the American left, offering socialist perspectives on politics, economics and culture.
Stahl and Hansen use the term ‘liberals’ in a way that needs further definition.
Far removed from the admirable political philosophy or worldview founded on ideas of liberty and equality, an online search (including Wiki) offers the explanation that Liberal writers start from the belief that economic liberalism’s values — the right to private property, the valorization of self-interest, and formal freedom without material equality — best describe human nature.
To explain what happened in the United Kingdom and the United States this year these writers all agree that voters and politicians increasingly deny facts, manipulate the truth, and prefer emotion to expertise .They ask how voters could defy the warnings of so many pundits, wonks, and fact-checkers?
Almost unanimously, they answered that we live in an age characterized by post-factual politics and noted that, pushed by major media organizations like Forbes and the New York Times, “post-truth” recently became Oxford Dictionaries’ new word of the year.
Stahl and Hansen sardonically observe that the liberal media don’t seem to know how we entered this post-fact world or when the factual age, which must have preceded it, ended, asking “Was it in the 2000s, when the whole world debated imaginary weapons of mass destruction before being conned into war?”
Historical points made in Jacobin:
- In the 1990s centrist technocrats like Bill Clinton and Tony Blair ‘pioneered . . . a false progressivism that was premised on profitability and stopped short of any proposal the political center might object to, no matter how just’.
- The right-wing fringe led by Fox News, conspiracy theorists, and televangelists remained marginal until 9/11/01 threw the United States — liberal and conservative alike — into a patriotic mass hysteria that culminated in two poorly planned wars.
- But historical events started calling liberal truths into question. The 2008 financial crash revealed the failure of liberal economics. Occupy and Black Lives Matter threw light on structural problems that triangulation and managerialism not only can’t address but refuse to.
In sum, they end that it’s time to stop blaming (the current version of) fake news and realize why so many believe it: the simple reason is that the mainstream of the political class have squandered people’s trust, by not having their best interests at heart. Stahl and Hansen believe that only a democratic revival will challenge authoritarianism and liberal managerialism and combat the regressives who now run their country – and ours.
Dr Paul Hobday, leader of the National Health Action Party (NHAP), a political party that was formed by doctors and campaigners in 2012 to fight to protect the NHS, has written to inform David Babbs of 38 Degrees (following his article in the Guardian) about the nature of Incisive Health (IH), whom 38D had commissioned under the impression that they were independent health policy experts.
38D crowdfunded to raise the money to commission Incisive Health to review all publicly available documents on the Sustainability and Transformation Plans but Dr Hobday points out that the co-founder of Incisive Heath is Bill Morgan, who was a special health advisor to Andrew Lansley, the author of the Health and Social Care Act (2012). The company itself is a health lobby group, representing private sector interests to government.
Hobday emphasises that the National Health Action Party wants to see an end to the ‘revolving door’ culture of Westminster and Whitehall – and that Incisive Health is part of that culture:
“Not only does Bill Morgan’s role in the destructive Health and Social Care Act (2012) make his company particularly unsuitable for NHS campaigns, their links don’t end there. In February 2016, Richard Douglas, the Department of Health’s Director General of Finance, joined Incisive Health. Andrew Lansley said he had “hugely valued” Douglas for his “advice and guidance”. Jeremy Hunt was also full of praise. Douglas was in charge of NHS money and policy during both Lansley and Hunt’s reigns, and so had a strong connection to their cuts and privatisation agenda.Incisive Health count Pfizer as one of their clients, so perhaps it is no surprise to find one of their ex-employees, Ben Nunn, in the health team of Owen Smith, given Smith’s own career with Pfizer.
Dr Hobday ends: “We hope that now that you have been appraised of the nature of Incisive Health, 38 Degrees will consider ending its relationship with that company as soon as possible”.
Some of 38D’s own members imply a similar request as a comment here:
“Babbs omits to mention US influence in NHS restructuring, which Jeremy Hunt has acknowledged. Major US consultancies and healthcare corporations like McKinsey and UnitedHealth are heavily involved. But he confirms that 38 Degrees commissioned Incisive Health, lobbyists for Virgin Healthcare and the privatisers’ NHS Partners Network, to produce its crowdfunded report. It’s not surprising it glosses over what the STPs prefigure – the replacement of an NHS once recognised as world leading in cost-effective public healthcare by a privatised system whose providers’ financial interests will have undue sway. As members of 38 Degrees, we think it’s vital that it isn’t seen as an NHS privatisers’ tool”.
Via John Wight’s Twitter account we saw a link to an article by Saurav Dutt, novelist, independent film producer, playwright, screenwriter, graphic design illustrator, accomplished author and writer. After James Landale, BBC diplomatic correspondent -amongst many others – reported David Cameron’s description of Afghanistan and Nigeria as corrupt, Saurav Dutt asked if anyone is contending that the UK is not corrupt?
”What the City and the tax havens are up to isn’t anything as morally defensible as corruption – it’s that good old fashioned criminal act of “receiving”. It gives corruption a bad name . . . There isn’t a lot of corruption in the UK, well, not in cash . . . “
The well-filled envelope type of corruption is common in some countries. How people laughed at Neil Hamilton when it was alleged that he received money in this way – British corruption is less obvious but now well realised by the general public. When will we protest like the Indian people?
As noted in the earlier post, readers send many links to news about the revolving door, rewards for failure, the political influence wielded by the corporate world and lucrative appointments for the friends and family of those with political influence; this is the British way.
Dutt says that corruption comes from the ‘top’ down and is endemic in Western society: “In a fiscal sense it is the banks, financial institutions and ‘big business’ with acceptance from politicians (who also get their cut one way or another) and moves on to a more moral sense with the Police and the legal professions”.
An All-Party Parliamentary Group on Anti-Corruption was established in November 2011 to raise awareness of the impact of international corruption and to enhance and strengthen UK anti-corruption policies and mechanisms. Could they answer Dutt’s questions?
- How many MPs voted for health legislation when they have interests in private health care?
- Why does Cameron appoint Ministers to the education department who have a direct interest in academies that their companies are involved in?
- Why does this government give honours to people who have given their party money?
- Why does this government pass legislation that directly benefits their donors?
As Dutt says “The Transparency International corruption index shows we have some way to go before we reach the dizzy heights of Denmark, and a short stroll down the slippery path to the likes of Qatar and the UAE”.