Category Archives: Revolving door
A Liverpool reader draws attention to the news that Philip May, husband of the UK prime minister, works for Capital Group, the largest shareholder in arms manufacturer, BAE Systems, whose share price has soared since the recent airstrikes in Syria, employs. It is also the second-largest shareholder in Lockheed Martin – a US military arms firm that supplies weapons systems, aircraft and logistical support. Its shares have also rocketed since the missile strikes last week.
Selected evidence of the revolving doors between Whitehall appointments, their family and friends and the ‘defence’ industry in our archives, in chronological order:
Michael Portillo, the secretary of state for defence from 1995 to 1997, became non-executive director of BAE Systems in 2002 before stepping down in 2006.
Lord Reid, secretary of state for defence from 2005 to 2006, said in 2008 that he had become group consultant to G4S, the security company that worked closely with the Ministry of Defence in Iraq.
Air Chief Marshal Sir Glenn Torpy, the chief of staff from 2006-2009, retired from the RAF last year and will become senior military adviser to BAE Systems in January.
Sir Kevin Tebbit, under-secretary at the MoD, became chairman of Finmeccanica UK, owner of Westland helicopters in 2007 and has a variety of other defence related appointments.
Major-General Graham Binns left the military in 2010 and became chief executive of Aegis Defence Services, a leading security company.
David Gould, the former chief operating officer of the MoD’s procurement division, became chairman of Selex Systems, part of Finmeccanica in 2010.
Lady Taylor of Bolton was minister for defence equipment for a year until 2008 and became minister for international defence and security until Labour lost the general election in May.In 2010 she joined the arms contractor Thales, which is part of the consortium supplying two aircraft carriers that are £1.541bn over budget.
In 2010 Geoff Hoon, the ex-Defence Secretary caught attempting to sell his services to fake lobbyists back alongside Stephen Byers. When he was an MP, military helicopter company AgustaWestland were awarded a billion-pound order. Now out of Parliament, Hoon earns his way as the company’s Vice-President of international business.
Andrew Tyler (above, right), the British Defence Ministry’s former procurement chief, became chief operating officer of Defence Equipment & Support (DE&S), responsible for the procurement and support of all the equipment used by the British Armed Forces. Siemens’ Marine Current Turbines unit appointed Andrew Tyler as acting CEO in 2011 and in 2012 he became the chief executive of Northrop Grumman’s UK & European operations; NG is a large American global aerospace and defence technology company. Above, still from a video made at a 2015 Defence and Security Equipment International (DSEI) arms fair
Then Business Secretary Vince Cable was one of 40 MPs on the guest list for a £250-a-head gathering in 2015 at the Hilton hotel on Park Lane. he gave a speech at the event organised by trade organisation ADS, the trade body for UK Aerospace, Defence, Security and Space industries arms fair..
Ministers were wined-and-dined in 2015 by the arms trade at a £450-a-head banquet on Tuesday night just hours after parliament’s International Development Committee said the UK should suspend all arms sales to Saudi Arabia.
In 2017, some of the senior politicians or members of their families lobbying for the nuclear industry were listed on this site (Powerbase source):
Three former Labour Energy Ministers (John Hutton, Helen Liddell, Brian Wilson)
Gordon Brown’s brother worked as head lobbyist for EDF
Jack Cunningham chaired Transatlantic Nuclear Energy Forum
Labour Minister Yvette Cooper’s dad was chair of nuclear lobbyists The Nuclear Industry Association.
Ed Davey, Lib Dem energy minister’s brother worked for a nuclear lobbyist. When failed to be re-elected went to work for the same nuclear lobbying firm as his brother.
Lord Clement Jones who was Nick Clegg’s General Election Party Treasurer was a nuclear industry lobbyist.
Tory Peer Lady Maitland is board member of nuclear lobbyist Sovereign Strategy.
Bernard Ingham, Mrs Thatcher’s press spokesperson, has been nuclear lobbyist for over 25 years.
Lord Jenkin was a paid consultant to nuclear industry.
MEP Giles Chichester is president of nuclear lobbyists EEF.
Concerns about the ‘cosy relationship between the government and the arms trade’ are expressed well by CAAT:
A disturbing number of senior officials, military staff and ministers have passed through the ‘revolving door’ to join arms and security companies. This process has helped to create the current cosy relationship between the government and the arms trade – with politicians and civil servants often acting in the interests of companies, not the interests of the public.
When these ‘revolvers’ leave public service for the arms trade, they take with them extensive contacts and privileged access. As current government decision-makers are willing to meet and listen to former Defence Ministers and ex-Generals, particularly if they used to work with them, this increases the arms trade’s already excessive influence over our government’s actions.
On top of this, there is the risk that government decision-makers will be reluctant to displease arms companies as this could ruin their chances of landing a lucrative arms industry job in the future.
The FT reports that senior executives at several of the largest US banks have privately told the Trump administration they feared the prospect of a Labour victory if Britain were forced into new elections.
It then referred to a report by analysts at Morgan Stanley arguing that a Corbyn government would mark the “most significant political shift in the UK” since Margaret Thatcher’s election and may represent a “bigger risk than Brexit” to the British economy. It predicted snap elections next year, arguing that the prospect of a return to the polls “is much more scary from an equity perspective than Brexit”.
Jeremy Corbyn gave ‘a clear response’ to Morgan Stanley in a video (left) published on social media reflecting anti-Wall Street rhetoric from some mainstream politicians in the US and Europe, saying: “These are the same speculators and gamblers who crashed our economy in 2008 . . . could anyone refute the headline claim that bankers are indeed glorified gamblers playing with the fate of our nation?”
He warned global banks that operate out of the City of London that he would indeed be a “threat” to their business if he became prime minister.
He singled out Morgan Stanley, the US investment bank, for particular criticism, arguing that James Gorman, its chief executive, was paying himself a salary of millions of pounds as ordinary British workers are “finding it harder to get by”.
Corbyn blamed the “greed” of the big banks and said the financial crisis they caused had led to a “crisis” in the public services: “because the Tories used the aftermath of the financial crisis to push through unnecessary and deeply damaging austerity”.
The FT points out that donors linked to Morgan Stanley had given £350,000 to the Tory party since 2006 and Philip Hammond, the chancellor, had met the bank four times, most recently in April 2017. The bank also had strong ties to New Labour: “Alistair Darling, a Labour chancellor until 2010, has served on the bank’s board since 2015. Jeremy Heywood, head of Britain’s civil service, was a managing director at Morgan Stanley, including as co-head of UK investment banking, before returning to public service in 2007”.
A step forward?
In a December article the FT pointed out that the UK lacks the kind of community banks or Sparkassen that are the bedrock of small business lending in many other countries adding: “When Labour’s John McDonnell, the shadow chancellor, calls for a network of regional banks, he is calling attention to a real issue”. And an FT reader commented, “The single most important ethos change required is this: publish everyone’s tax returns”:
- In Norway, you can walk into your local library or central council office and see how much tax your boss paid, how much tax your councillor paid, how much tax your politician paid.
- This means major tax avoidance, complex schemes, major offshoring, etc, is almost impossible, because it combines morality and social morals with ethics and taxation.
- We need to minimise this offshoring and tax avoidance; but the people in control of the information media flow, plus the politicians, rely on exactly these methods to increase their cash reserves.
But first give hope to many by electing a truly social democratic party.
Is the rainbow suggesting a new party logo?
Broken Britain 3: ‘strong and stable government’: by the rich, for the rich, at the expense of the rest
Those who are ‘just about managing’ live in the only ‘big advanced economy’ in which wages contracted (2007-2015) while the economy expanded, the cost of living rose and multinational profits rocketed.
Pett lists the end goals which would benefit the 99% and the wreckers
As Eisenhower said, we need a humane government which would focus on the well-being of all, not the profits of the few and stop being complicit in slaughter . . .
and we should strengthen local/regional economies.
Close the global casino and the revolving door between big business and government
and offer all, especially superfluous managers and young commodity traders, socially beneficial work
The corporate world continues its vitriolic but insubstantial attacks on the Labour Party leader whose approach threatens their unreasonably affluent lifestyles. Will increasingly media-sceptical people who seek the common good be affected by them?
In brief, the reference is to arms traders, big pharma, construction giants, energy companies owned by foreign governments, food speculators, the private ill-health industry and a range of polluting interests. Examples of the damaging political-corporate nexus are given here – a few of many recorded on our database:
Arms trade: Steve Beauchampé – “A peacenik may lay down with some unsavoury characters. Better that than selling them weapons”.
The media highlights Corbyn’s handshakes and meetings, but not recent British governments’ collusion in repressive activities, issuing permits to supply weapons to dictators. In the 80s, when lobbying Conservative MP John Taylor about such arms exports, he said to the writer, word for word: “If we don’t do it, someone else will”. Meaning if we don’t help other countries to attack their citizens, others will. How low can we sink!
Reader Theresa drew our attention to an article highlighting the fact that the Specialised Healthcare Alliance (SHCA), a lobbying company working for some of the world’s biggest drugs and medical equipment firms, had written the draft report for NHS England, a government quango. This was when the latest attempt at mass-medication – this time with statins – was in the news.
Most construction entries related to the PFI debacle, but in 2009 it was reported that more than 100 construction companies – including Balfour Beatty, Kier Group and Carillion – had been involved in a price-fixing conspiracy and had to compensate local authority victims who had been excluded from billions of pounds of public works contracts. The Office of Fair Trading imposed £130m of fines on 103 companies. Price-fixing that had left the public and councils to “pick up the tab”.
In Utility Week News, barrister Roger Barnard, former head of regulatory law at EDF Energy, wondered whether any government is able to safeguard the nation’s energy security interests against the potential for political intervention under a commercial guise, whether by Gazprom, OPEC, or a sovereign wealth fund. He added: “Despite what the regulators say, ownership matters”. The Office of Fair Trading was closed before it could update its little publicised 2010 report which recorded that 40% of infrastructure assets in the energy, water, transport, and communication sectors were already owned by foreign investors.
A Lancashire farmer believes that supermarkets – powerful lobbyists and valued party funders – are driving out production of staple British food supplies and compromising our food security. She sees big business seeking to make a fortune from feeding the wealthy in distant foreign countries where the poor and the environment are both exploited. These ‘greedy giants’ are exploiting the poor across the world and putting at risk the livelihoods of hard working British farmers, their families and their communities. She adds that large businesses are gradually asset-stripping everything of value from our communities to make profits which are then invested abroad in places like China and Thailand.
Government resistance to funding long-term out of work illness/disability benefits followed the publication of a monograph by the authors funded by America’s ‘corporate giant’ Unum Provident Insurance which influenced the policy of successive governments. After various freedom of information requests, the DWP published the mortality figures of the claimants who had died in 11 months in 2011 whilst claiming Employment and Support Allowance, with 10,600 people dying in total and 1300 people dying after being removed from the guaranteed monthly benefit, placed into the work related activity group regardless of diagnosis, forced to prepare for work and then died trying. Following the public outrage once the figures were published, the DWP have consistently refused to publish updated death totals. Information touched on in this 2015 article has been incorporated into a ResearchGate report identifying the influence of Unum Provident over successive UK governments since 1992, the influence of a former government Chief Medical Officer and the use of the Work Capability Assessments conducted by the private sector – described as state crime by proxy, justified as welfare reform.
The powerful transport lobby prevents or delays action to address air pollutants such as ground-level ozone and particulates emitted by cars, lorries and rail engines which contribute directly to global warming, linked to climate change. They emit some common air pollutants that have serious effects on human health and the environment. Children in areas exposed to air pollutants commonly suffer from pneumonia and asthma.
Victimised whistleblowers, media collusion, rewards for failure and the revolving door
- A recent whistleblower report records that Dr Raj Mattu is one of very few to be vindicated and compensated after years of suffering. The government does not implement its own allegedly strengthened whistleblower legislation to protect those who make ‘disclosures in the public interest’.
- This media article relates to the mis-reporting of the Obama-Corbyn meeting: there are 57 others on this site.
- Rewards for failure cover individual cases, most recently Lin Homer, and corporate instances: Serco and G4S were bidding for a MoD £400m 10-year deal, though they had been referred to the Serious Fraud Office for overcharging the government on electronic monitoring contracts. Another contender, Capita, according to a leaked report by research company Gartner was two years behind schedule with its MoD online recruitment computer system – yet the government had contracted to pay the company £1bn over 10 years to hire 9,000 soldiers a year for the army.
- The 74th instance of the revolving door related to Andrew Lansley’s move from his position as government health minister to the private health sector. An investigation by the Mail found that one in three civil servants who took up lucrative private sector jobs was working in the Ministry of Defence: Last year 394 civil servants applied to sell their skills to the highest bidder – and 130 were MoD personnel. Paul Gosling describes how the Big Four accountancy firms have PFI ‘under their thumbs’ and gives a detailed list of those passing from government to the accountancy industry and vice versa.
Steve Beauchampé asks if the barrage of criticism apparently aimed at Jeremy Corbyn is more about undermining the politics he stands for which are probably less far to the left than those of many in the current government are to the right. Most political commentators and opponents aren’t worried that Labour will win a General Election under him, but they are alarmed that the movement his leadership has created might one day lead to an electable left winger.