Category Archives: Revolving door
The revolving door between government & big business
Yesterday’s headlines review of ONS report: 2008-2019, richest 10% enjoy biggest gains in household wealth
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?