Category Archives: Economy

Caroline Lucas’ e-petition to promote Tax and Financial Transparency

Please see following message received from Caroline’s Senior Parliamentary Press Officer :
Hi all,
You may remember that, back in March, Caroline tabled a Tax and Financial Transparency Bill aimed at tackling corporate tax evasion and avoidance: http://www.greenparty.org.uk/news/17-03-2011-tax-evasion-bill-parliament.html
She has now launched a related e-petition to galvanise public support for the proposed measures – we are also hoping that this will help to put pressure on the Government to make time available for the second reading of the Bill on 25 November and raise awareness of the issue more generally. Over 1,800 people have already signed since 11 Oct.
The petition itself is here: http://epetitions.direct.gov.uk/petitions/18996. Obviously the more signatures the better, so please feel free to circulate far and wide! It might also be useful as a reference point in local media work around the cuts, tax issues and the economy.
UK Uncut are supporting and have posted a nice piece with video footage of Caroline here: http://www.ukuncut.org.uk/blog/help-make-corporate-tax-dodgers-pay-their-fair-share
Many thanks,
Melissa
Melissa Freeman
Senior Parliamentary Press Officer
Office of Caroline Lucas MP

Greens Defend Rail Jobs in Derby & UK

Rally in Derby on Saturday 23 July

The Green Party has condemned the Tory/Lib Dem coalition government for giving a £3 billion order of new rolling stock for Thameslink trains to Siemens.

The rival bidder, Derby-based Bombardier, has laid off over a thousand workers, as the last remaining train builder in the country. The Bombardier factory in Derby is now under threat, and so are thousands more jobs in the Derby area in other rail businesses that supply the factory.

Green Party transport spokesperson Alan Francis said:

“We need more train carriages and more manufacturing jobs in the UK. Train manufacturing in this country should be expanded, not forced to close down. It is a dereliction of duty by the government to stand by and see the loss of skills and jobs.”

Derbyshire Green Party Chairman David Foster said:

“The coalition government is playing political football with the livelihoods of thousands of people in Derby and Derbyshire. One of the most worrying aspects of this deplorable decision is that it continues the trend of dismantling the whole engineering industry and technical know-how in this country. We have already witnessed the demise of the British automotive industry and rely heavily on foreign manufacturers. If we don’t wake up to what is happening, we risk losing our national engineering heritage. I urge the people of Derby and Derbyshire to show their opposition to this decision and come to the rally in Derby on Saturday 23 July.”

At a pre-general-election rail debate in Westminster in 2010 (1), Alan Francis was the only politician to argue not only for more train carriages for the rail network, but to also to state that they should be built in the UK to preserve British jobs.

Francis was on a panel with Chris Mole, then a Labour government transport minister, Stephen Hammond, then a Conservative shadow transport minister, and Norman Baker, then a Lib Dem shadow transport minister. The debate, before an audience of senior rail industry people, was chaired by the BBC’s Nick Owen.

When questioned about orders for new carriages, all of the panelists claimed that they wanted to see more carriages on the network. But Francis was the only one to talk about building those new carriages in this country. Alan Francis said today:

“This shows that all three of the main parties are so wedded to the free market, they are willing to sacrifice British manufacturing and British jobs. After the debate, I was congratulated by a member of the audience from a Derby rail company. He thanked me for being the only panellist to raise the issue of train building in this country.”
Notes
1) The Rail Debate, 17th March 2010, Central Hall, Westminster, see part 8 – http://www.youtube.com/watch?v=xxuBUEorm_I&feature=related

Greens in the High Peak Borough Council Election 2011

This Government is leading a concerted attack on local democracy. Their aim is to see Local Authorities contract out all services to the private sector, a move being pioneered in Bury. They want Councils to do nothing more than simply award contracts to private companies. Yet the private sector’s principle interest is profit, not delivery of service. It answers to shareholders not users of services. It is not democratically accountable. Green Councillors across the county are resisting this policy that will hit the poorest hardest and benefit the richest most. Greens know that the Government’s cuts are both unfair and unnecessary. We have produced an alternative programme for reducing the deficit, boosting investment in green jobs and avoiding savage cuts.

Investment into reducing the energy demand of the country needs to be happening now if we have any chance of minimising the damage of climate change. Almost 60% of our carbon emissions come from manufacturing and consumption, more effort must be made to reduce this figure along with major improvements to public transport and changing attitudes towards how we use our cars.   The Borough Council should aim to become carbon neutral, it should take advantage of the Feed In Tariff to turn its building stock in to energy generators, cutting its energy costs and raising revenue.  Green Councillors in Norfolk are setting up a Council owned Energy Supply Company, using the Feed In Tariff to finance fitting solar panels on Council buildings, selling surplus electricity back to the grid, so cutting costs and raising revenue. Green Councillors in Kirklees set up a free insulation scheme for council tenants that has enabled households save on average £150 on their annual energy bills. Greens deliver new ideas, not cuts.

Too many Councils are failing to protect the interests of small business and the local economy, always favouring the interests of big business.  Throughout the country, Green councillors with the support of local landlords, traders and residents have managed to stop many attempts by supermarkets to build unnecessary stores that would cause the closure of local independently owned shops. Local stores provide a wider social and economic role and one that is central to a sustainable neighbourhood. Over 50% of the turnover of independent retailers goes back into the local community whereas the supermarkets effectively take money out of the local economy. They also meet the needs of the disadvantaged, socially excluded and elderly, particularly those with a lack of mobility who cannot access more distant shops.

Green Councillors have also fought to save local markets and helped establish farmers markets to encourage the sale of locally produced food.  The Borough Council should review its land holding aiming to make land available for food production for local supply, again raising revenue for local services. Greens bring cooperation with local business not sell out to big business.

Untold billions was found to bail out the banks and replace Trident yet when it comes to safeguarding our children’s future and the lives of many people around the world both Labour and the Lib-Con Coalition do not see it as a priority. Greens are planning for a safe and sustainable future for all.

March Against the Cuts

Being green is not just about environmental matters and it would do none of us any harm to involve ourselves in other campaigns as well. That’s why some of us will be attending the March Against the Cuts in London on 26 March and why we shall also be protesting about the planned benefit changes which are going to lead to the poorest people in the country becoming poorer still.

Secretary of State for Work & Pensions Iain Duncan Smith has announced changes to the social security system which are intended to cut the amount spent on benefits by £18 billion a year from 2013. No matter how these changes are dressed up this is going to hurt. When public spending is being slashed and unemployment is rising it will mean sharing fewer resources among more people and only a fool will believe that increased poverty is not going to result, among the unemployed (which could include any of us at any time) the disabled (ditto), children and elderly citizens.

It isn’t necessary to wait till 2013 for cuts to bite however. From April this year changes to the Work Capability Assessment (WCA), designed to make it even harder to show that someone is incapable of work through illness or disability, will take effect. The aim of this measure is to take money off the poor in order to help pay for the excesses of the rich, whose unregulated greed led to the crisis of capitalism which got us into this financial pickle in the first place.

One particular example of how the rules work illustrates very clearly the inhumane nature of the new test. Currently a person who is registered blind is exempt from the WCA. This exemption ends in April and blind people will have to score 15 points on the test just like everyone else if they are to keep their entitlement to Employment & Support Allowance. The rule now is that if you are blind and possess a guide dog, and you can walk across a road with your dog and without the need for another person’s assistance, you do not score the necessary 15 points. To you or me this sounds very much like testing the dog rather than the claimant, and we might also ask what this particular challenge has to do with a working situation. Indeed, those of us who work in this field will be asking that very question when these cases come up for appeal, as they
inevitably will do so, from this Spring onwards.

If you are wondering why I am commenting on this on a green website, the reason is as follows. Even if we were indifferent to the injustices involved, which we certainly are not, it’s clear that as poverty increases local businesses will take a huge hit. With their
high overheads they cannot fairly compete with the supermarkets who use food items as loss leaders. There will be reduced demand for organic food, which is more expensive than the stuff flown in from overseas, and people will have less or no money available to take the costly steps required to make their houses more fuel-efficient, so these are issues which going to affect us all.

by Chris Connolly

Time to take the Tesco out of Food Policy

Green Party food policy supports the production of healthy and humanely produced food, giving priority to local production for local needs, integrated with habitat conservation.  Greens also call for a fair price for family farm businesses and greater support for the provision of allotments and local markets.  A Ministry of Food should oversee policy delivery.  To stimulate greater home production, Government must make agricultural land available for sustainable production.  Where possible, this land should be held in Trust for the community, preventing it falling into the hands of the big, intensive landowners.  Government can lead the way by identifying underutilised public land, including that held by the Ministry of Defence – food security is an integral part of National security.  It should also require that the Royal Estate follow its lead.

Local Authorities need powers to take over the management of under-utilised land, similar to the powers they have over vacant private housing, making this land available for allotments or smallholdings.  They have to be empowered to rebuild the local market infrastructure that the supermarkets have destroyed.  Schools and colleges should work to develop knowledge, interest, and skills in growing and preparing food, so encouraging young people to see agriculture as a worthy career.

When Peter Kendall, President of the National Farmers Union addressed his Union’s conference this February, he roundly criticised government’s failure to adopt a serious food policy.  He said their approach was ‘leave it to Tesco’ – to leave it to the markets and rely on food imports to make up the growing food deficit.  Greens support his warning that this is ill advised in a world where a combination of both rising population and prosperity and the increasing frequency of so-called ‘natural’ disasters, is putting pressure on food supply.  He might have added that the reliance of western style agriculture on oil was adding a further twist to the rising spiral of food prices.

Historically the UK government has run a cheap food policy the purpose of which has been to underpin the low wage strategy that the captains of industry have wanted to pursue in order to minimise their costs and maximise their profits and dividends.  In the days of Empire this involved importing cheap food notably wheat from North America and sugar from the Caribbean to provide adequate calories for the workforce.  Now, this policy of relying on imports and letting the supermarkets use their muscle to force down prices, is failing.

Governments the world over have learned that if the workers get hungry they get upset and may riot.  Inadequate food supply has been an underlying cause of the revolutions taking place across the Middle East.  The World Bank acknowledges this and says that global food prices are at a dangerous level.  In response, the G20 will meet to discuss the economic and political impact of food and commodity prices.  French President Sarkozy, currently chair of G20, has blamed commodity speculators, and indeed, it is shocking that human beings will manipulate food prices for personal gain, consigning hundreds of thousands to hunger and misery.  But the problem lies deeper than this naked greed.

The problem lies in the ‘commodification’ of the earth’s resources – turning everything into something for sale and then leaving supply to the market.  Markets will always sacrifice long-term benefit for short-term gain; their interest is in profit not people.  Governments have a duty to look after the long-term interests of the people, and they are failing to do this.  They are in the position to develop policies that will deliver an adequate and balanced diet to their citizens.  However, these policies will require a fundamental shift in methods of food production and distribution; it will require standing up to the powerful interests that are manipulating food and agriculture policy.  It will require curtailing the dependence of food supply on oil.

There is no real food policy in the UK.  The last Government began a tentative process to look at the issue spurred on by the rise in oil prices and the global food riots of 2008.  Professor Tim Lang, a leading thinker on food policy and then advisor to the Cabinet office, exposed some revealing thinking underpinning entrenched government attitude to food supply.  Defra was of the opinion that self-sufficiency was neither possible nor a desirable goal for a trading nation.  They also took the view that the UK could and should buy on open markets.  National food security was relevant for developing countries they conceded, but not for the rich countries of Western Europe.  The Labour Government did not complete its policy review and we can presume that under the present administration Defra has returned to this default position.  If it does recognise a problem, it will doubtless listen to industry lobbyists and see the solution in more intensification, mega-dairies, and GM technology.  More reliance on increasingly scarce oil in other words.

Since Defra questions self-sufficiency, it is fair to ask if it is possible. This question was asked in 1975 by Kenneth Mellanby, founder Director of Monk’s Wood Ecology Research station, which of course has now been closed.  His answer, given in a book ‘Can Britain Feed Itself’ was a clear ‘Yes!’  More recently, Simon Fairlie, editor of ‘The Land’ revisited Mellanby’s work in the light of today’s population and land-use.  This time he gave a qualified ‘yes’.  We could do it, but meat consumption would have to decline by about one half.

A stunning demonstration of what happens if you take oil out of food production is to be seen in the film “The Power of Community: How Cuba Survived Peak Oil” about Cuba after it lost Russian oil and still not able to afford other sources.  In its 2006 Living Planet Report, the WWF named Cuba as the only sustainable country in the world.  This was largely due to its system of organic food production, made necessary by its lack of oil.  Cubans enjoy a high standard of health with a life expectancy of 78, equivalent to any developed country.

Pioneers in the UK are showing the way.  Around the country, Transition Communities are looking seriously at local food security, developing the important concept of ‘food catchment area’.  With rising prices set to continue, their work is less academic and increasingly urgent, made even more so by the inability of Government to address the matter.  In Manchester, Unicorn Grocery specialises in ethically grown and wholesome fruit and veg.  The cooperative business has bought 21 acres of prime growing land at Glazebury, Warrington.  Its intention is to lease out plots to organic growers and provide the outlet market for the produce, bringing healthy, locally grown food to urban south Manchester.  It is initiatives like this that government needs to foster, not GM and mega-dairies.

[Mike Shipley February 2011]

Our Forests are Not for Sale

With an irony that will be lost on the ideologues of the ConDem Government, 2011 is the International Year of Forests. The UK’s response to this UN led drive to raise awareness among people of the importance of woodland will be to sell off England’s publicly owned woodland. [The sell-off proposals only apply to England, thankfully for the other British Nations this is a devolved function]

England is no longer a well-wooded country, with only 9% of its land area designated as forest. A long history of clearances and the depredations of the industrial revolution denuded the once lush natural woodland cover that would, if left to nature, cover much of the land area. By the end of the first Word War, cover was down to less than 5% and our strategic reserves of timber reaching crisis point. Blockaded, the UK had come close to defeat through a lack of pit props, which threatened our ability to mine the coal desperately needed for the war effort.   In 1919, the Liberal-Tory coalition of Lloyd-George responded to this by establishing the Forestry Commission, giving it the task of replanting and managing our Forests as a strategic reserve. It is with further irony that the present alliance of these Parties is set to emasculate the Commission.

How Lloyd George, Liberal father of the welfare state, must be turning in his grave!

The English Public Forest Estate [PFE] is made up of over 1000 woods covering 258,000 hectares, 18% of English woodland. Of this area, 24% is ancient woodland and 10% classified as priority conservation areas. 45% of the woodland is in the National Parks or Areas of Outstanding Natural Beauty, and 26% are Sites of Special Scientific Interest. These figures demonstrate the heritage and ecological value of publicly owned woodland. To add to its public value, 90% of the Forestry Commissions free holding is open to public access. In Derbyshire, there are 3154 ha of Commission woodland, from the Heritage woods of Ladybower to part of the new National Forest in South Derbyshire.

In simple monetary terms, the PFE is currently valued at around £700 million, a mere drop in the ocean of the National Debt of £950 billion. In 2007-8, the net cost of managing the estate was £15 million, after accounting for profits of about £60 million. This is about 30p per person in England. Put this in perspective. The official cost of the Bank bailout, agreed by the Treasury, was £850 billion of public money. This is £13,755 per UK resident. At least Caroline Spelman, Minister charged with the job of overseeing the sale, admitted that this was not a revenue generating exercise by a cash-strapped Government. What she would not admit was this is ideologically driven – that the Tory landowners want this land under their control.

One of the first acts of the Thatcher administration in the 1980’s was to enable the sale of public woodland through the 1981 Forest Act, resulting in the sale of thousands of acres of public land. The Labour Government reined in this policy after 1997, with about 10,000 ha of ‘surplus’ land being sold over the next decade. This was land considered marginal to the Forestry Commission’s core business. On coming to power, the Tories once again lined up this publicly owned land for sale, immediately planning to sell 40,000 ha, and planning to change the law to allow the disposal of most of the rest.

What is their motivation? Spelman says it is not primarily economic. When fully worked out – that is when all values are based on the restrictive covenants that the Tories are promising – it is likely that there will be no net gain to the Treasury from their policy. She claims that one of the main motives for a sale was the need to ‘enhance biodiversity.’ Other’s claim that sale to the private sector will enhance ‘public enjoyment of woodland’. These claims do not stand up to analysis and are frankly laughable. Certainly, there are well-managed private woodlands with excellent public facilities. Most of these facilities are charged for, and, reading the small print you will find that access is concessionary and not a public right ‘in perpetuity’ as with present Forestry Commission owned land.

Since the Norman invasion, land ownership has underpinned the power structure of this country. The Conqueror awarded his loyal lieutenants rich country estates and there after, crowned heads continued to buy loyalty with gifts of land. All this built on the presumption that the land area of the British Islands belonged to the monarch. The ordinary British people did not quite see it this way and fought to keep traditional common rights of use and passage. But the greed of their Lordships knew no bounds; they excluded the people, denied common rights, hung them, flogged them, and transported them if they had the effrontery to try to exercise these rights by taking small animals for the stew pot or wood with which to heat it. Land ownership was the clear line in the sand that divided the ruled from the rulers – and that is the way the descendents of the Norman Barons want to keep it.

History aside, there is another reason for the sell-off that fits in with the right wing agenda of this Government, tax avoidance. Investors who buy woodland can benefit from a range of grants and tax incentives and tax avoidance loopholes designed to encourage private ownership of woodlands in the UK. The income and profits from timber sales in woodlands managed commercially are free from both Income and Corporation Tax and after two years of ownership, woodland is not subject to inheritance tax. With a shortage of such investment woodland on the market, the Tories, with the help of the Liberal Democrats, are offering public land as tax-free investments to their loyal and rich supporters. So once the land is sold, it will provide zero return for the taxpayer.

No matter what Spelman says, incorporating this private landholding in to a strategic plan for biodiversity, for watershed management, for erosion control, as a reserve of a vital resource, as a managed carbon sink and as a national recreational asset will be all the more difficult for being split up and managed according to different criteria.  Forging agreements that will last hundreds of years, across a wide range of different interests, many with a commercial imperative as the bottom line will be expensive. The private players will want and expect public subsidy if they are to act in the public interest. This policy therefore has a price tag that we will have to pay. The Tories are selling an asset that could at the very least is revenue neutral, and are creating a liability, the scale of which they have no clue.

What can you do? Look at the Defra consultation, which is open until 21st April 2011.http://www.defra.gov.uk/corporate/consult/forests/index.htm.

Support the Woodland Trust that has a petition and a response to the consultation.http://www.woodlandtrust.org.uk/en/Pages/default.aspx

Sign the petition by 38 Degrees opposing the sale, and join in their campaign. http://38degrees.org.uk/

Write to your MP stating clearly your views and seeking his or her position. Publicise both through letters to the papers. Make your voice loud and clear, ‘Our Forests are Not for Sale.’

[Mike Shipley, 30 January2011]

What the papers won’t be saying about benefits.

Once again this week, Secretary of State for Work & Pensions, Iain Duncan Smith, alluded to the “dependency culture” which he claims to believe is preventing many welfare benefit claimants from looking for work. He also announced plans whereby claimants who refuse an offer of work from a Jobcentre will face the sanction of losing their benefit for three months. As a welfare-rights worker of 20 years’ experience I think I know what I am talking about on the subject of Jobseeker’s Allowance and, to bring a bit of balance to the subject, I’d like to make some observations.

The idea that claimants are offered jobs when they visit the Jobcentre is a myth. There are simply far too many claimants and too few jobs to make this a reality. The overwhelming majority of unemployed claimants (and there are sure to be many more of us joining their ranks in the next year or two), would jump at the chance to work. This is why most of them have already performed voluntary work or taken up work experience already, without having to be bullied into doing so by the threat of sanctions. The Coalition Government, like the Labour administration before it, has successfully demonised the unemployed in the media by implying that the unemployed must be at fault for not having a job. Like Norman Tebbit before him, Iain Duncan Smith has said that if a job is not available in someone’s backyard, they should get out and look for one. While Norman Tebbit referred to his dad getting on his bike to find work, IDS reckons the unemployed should hop onto the bus. The example he gave – that if there is nothing in Merthyr Tydfil then the townsfolk should take a ride to Cardiff where there is work a-plenty, will have come as quite as a surprise to those in Cardiff’s own queues down at the dole office.

Let‘s look at some figures now, and see what the allegedly work-shy are “dependant” upon. According to the Joseph Rowntree Foundation, in order to achieve a decent standard of living a single person in the UK should have an annual income of at least £14,400. The current basic weekly rate of Jobseeker’s Allowance is £65.45 for a single person aged between 25 and 60, or £51.85 if between 18 and 24. These weekly figures represent annual benefit income of, respectively, £3403.40 and £2696.20. Multi-millionaire IDS has not explained to us why or how anyone would be crazy enough to consciously choose to try to manage their daily lives on such meagre amounts. £65 is nowhere near enough to pay for a weekly food shop plus a fuel and phone bill and a TV license, let alone for such small luxuries as an occasional night out, a bus ride to the town centre (or from Merthyr to Cardiff!), a trip to a football match or a cup of coffee and a bun in a café.

People who are too sick to work, meanwhile, through physical or mental illness or a combination of the two, presently receive £91.40 a week in Employment & Support Allowance, providing they can get through the increasingly inhumane Work Capability Assessment. Labour’s last Secretary of State, Yvette Cooper, was so proud of the toughness of the WCA that she boasted, in the House of Commons, of the number of claimants who had failed to get through it. This year I have had to represent, at independent tribunals, claimants who have been found fit for work (and thereby not entitled to their £91.40, or £4752.80 a year if you prefer), despite having conditions including a broken leg in plaster, diabetes-associated blindness and agoraphobia to name but three.

That the Tories, traditionally the “nasty party”, should take a harsh attitude to the most vulnerable people in UK society is appalling but maybe only to be expected. That the Liberal Democrats should jettison their liberalism by supporting them is shocking, but that Labour, once the party of Clem Attlee and Nye Bevan, should acquiesce in robbing the sick and the poor of their already miserable benefits should make every one of their supporters hang his or her head in shame.

The unemployed people of the UK are the victims rather than the creators of the country’s financial crisis, which resulted not from benefit payouts but from the excesses of unbridled capitalism, and yet it is they, together with workers in the public sector, who are first in line to pay the price. If the descendants of the party that invented the Welfare State are no longer prepared to support claimants’ standards of living then there is a vacancy to be filled by a compassionate party that will do so, and promote “fairness” in its true (rather than its Cleggist) sense.

[Chris Connolley, 12 November 2010]

Who’s to Blame?

The ConDem Government is rewriting history. To protect the guilty, they are attacking the innocent. To protect the comforts of the affluent elite that secured their victory, they are planning to attack the most vulnerable in society.

We are being led to believe that feckless spending on welfare and social projects by the Labour government caused the current economic crisis, the crisis they use as justification for a crippling round of public service cuts. The shrill and deceitful voices of the popular press are telling us there is an army of scroungers out there, who have stripped the cupboard bare.

Is our collective memory really so short that we have forgotten the events of 2008? Have we forgotten already about the collapse of Lehman Brothers, of Bear-Stearns? Forgotten about top financiers’ outrageous bonuses? That is what Mr Osborne, Mr Cameron, and Mr Clegg would like us to do, as they stand poised to slash our public services in order to shore up our ailing economy.

Let us take a very short step back into history. To quote Wikipedia: “The late-2000s recession [or the Great Recession] was an economic recession that began in the United States in December 2007.” The recession that has dragged the word economy down began in the land of the free market, minimum regulation, private social provision, minimum government. In other words, the political and economic model that the ConDems want to emulate here caused the global financial meltdown – not government spending on social projects or poverty relief.

Those economists who have not swallowed ‘free market’ dogma completely agree that the roots of the crisis lay in too easy credit leading to a boom in demand, leading in turn to a rapid rise in asset values, including housing. This asset inflation supported more borrowing and credit to produce more consumption and a further round of asset inflation, an economic house of cards.

The crisis was not inevitable. It was driven by US ideology, a belief that resources were inexhaustible, that the world could and would underwrite American debt, that debt could be turned into an asset to create more wealth and consumption, that unfettered market forces solved all problems. As former BBC economics editor Evan Davies said, “It was a result of a system heavily grounded in bad theories, bad statistics, misunderstanding of probability and, ultimately, greed.”

We do remember what happened. The markets panicked, asset values fell, un-payable debt [“toxic assets” - remember debt had been turned into an asset!] grew and led to major company collapses. Banks began to fail. Small ones were allowed to go to the wall, but when the big boys felt the chill, they panicked governments into believing that they were too big to fail. So with a speed that deceived the eye, governments across the developed world bailed out their banks. Public money was used to prop up private business, business that had been, to say the least, imprudent. The lead to bail out was set in the home of the ‘free market’. As Paul Reynolds, BBC World Affairs correspondent observed after the events of 2008, “The American free-market creed has self-destructed while countries that retained overall control of markets have been vindicated.”

Still the free-marketeers resist financial regulations. The ConDems promptly proposed scrapping the Financial Services Authority. They are turning a deaf ear to calls for windfall taxes on Bankers’ bonuses. There is no discussion on a financial transaction tax [Tobin Tax]. They lead us to believe that it is we, the people who use social services like health and education, who are to blame.

We must not accept the blame – we must ensure that blame is laid and remains at the door of those responsible. Joseph Stiglitz is in no doubt where the blame lies, and he is well qualified to know, better qualified than the proprietors or editors of the right wing media, or our puppet politicians: he holds the Nobel Prize for Economics. This is his observation:

“This band of greedy oligarchs have used their economic power to persuade themselves and most others that we will all be better off if they are in no way restrained—and if they cannot persuade, they have used that same economic power to override any opposition. The economic arguments in favor of free markets are no more than a fig leaf for this self-serving doctrine of self-aggrandizement.

Worse still, much of the money flowing into the banks to recapitalize them so that they could resume lending has been flowing out in the form of bonus payments and dividends.”

Joseph Stiglitz, Fear and loathing in Davos, The Guardian, February 6, 2009

No, do not accept the blame. Fight the cuts!

Who’s to Blame?

The ConDem Government is rewriting history. To protect the guilty, they are attacking the innocent. To protect the comforts of the affluent elite that secured their victory, they are planning to attack the most vulnerable in society.

We are being led to believe that feckless spending on welfare and social projects by the Labour government caused the current economic crisis, the crisis they use as justification for a crippling round of public service cuts. The shrill and deceitful voices of the popular press are telling us there is an army of scroungers out there, who have stripped the cupboard bare.

Is our collective memory really so short that we have forgotten the events of 2008? Have we forgotten already about the collapse of Lehman Brothers, of Bear-Stearns? Forgotten about top financiers’ outrageous bonuses? That is what Mr Osborne, Mr Cameron, and Mr Clegg would like us to do, as they stand poised to slash our public services in order to shore up our ailing economy.

Let us take a very short step back into history. To quote Wikipedia: “The late-2000s recession [or the Great Recession] was an economic recession that began in the United States in December 2007.” The recession that has dragged the word economy down began in the land of the free market, minimum regulation, private social provision, minimum government. In other words, the political and economic model that the ConDems want to emulate here caused the global financial meltdown – not government spending on social projects or poverty relief.

Those economists who have not swallowed ‘free market’ dogma completely agree that the roots of the crisis lay in too easy credit leading to a boom in demand, leading in turn to a rapid rise in asset values, including housing. This asset inflation supported more borrowing and credit to produce more consumption and a further round of asset inflation, an economic house of cards.

The crisis was not inevitable. It was driven by US ideology, a belief that resources were inexhaustible, that the world could and would underwrite American debt, that debt could be turned into an asset to create more wealth and consumption, that unfettered market forces solved all problems. As former BBC economics editor Evan Davies said, “It was a result of a system heavily grounded in bad theories, bad statistics, misunderstanding of probability and, ultimately, greed.”

We do remember what happened. The markets panicked, asset values fell, un-payable debt [“toxic assets” - remember debt had been turned into an asset!] grew and led to major company collapses. Banks began to fail. Small ones were allowed to go to the wall, but when the big boys felt the chill, they panicked governments into believing that they were too big to fail. So with a speed that deceived the eye, governments across the developed world bailed out their banks. Public money was used to prop up private business, business that had been, to say the least, imprudent. The lead to bail out was set in the home of the ‘free market’. As Paul Reynolds, BBC World Affairs correspondent observed after the events of 2008, “The American free-market creed has self-destructed while countries that retained overall control of markets have been vindicated.”

Still the free-marketeers resist financial regulations. The ConDems promptly proposed scrapping the Financial Services Authority. They are turning a deaf ear to calls for windfall taxes on Bankers’ bonuses. There is no discussion on a financial transaction tax [Tobin Tax]. They lead us to believe that it is we, the people who use social services like health and education, who are to blame.

We must not accept the blame – we must ensure that blame is laid and remains at the door of those responsible. Joseph Stiglitz is in no doubt where the blame lies, and he is well qualified to know, better qualified than the proprietors or editors of the right wing media, or our puppet politicians: he holds the Nobel Prize for Economics. This is his observation:

“This band of greedy oligarchs have used their economic power to persuade themselves and most others that we will all be better off if they are in no way restrained—and if they cannot persuade, they have used that same economic power to override any opposition. The economic arguments in favor of free markets are no more than a fig leaf for this self-serving doctrine of self-aggrandizement.

Worse still, much of the money flowing into the banks to recapitalize them so that they could resume lending has been flowing out in the form of bonus payments and dividends.”

Joseph Stiglitz, Fear and loathing in Davos, The Guardian, February 6, 2009

No, do not accept the blame. Fight the cuts!

The Green New Deal

The Green Party Manifesto offered the electorate an economic programme that would reduce our national debt without cutting vital public services.  This programme is the Green New Deal. It is a response to the triple crisis that the world now faces:

  • A financial crisis caused by the uncontrolled speculation of international bankers, including many based in the City of London, interested in quick profits, rather than sustainable development, creating a financial bubble, which was bound to burst and did.
  • An energy crisis as the supply of oil peaks, and remaining reserves become more damaging and dangerous and expensive to extract.
  • A climate crisis driven by burning fossil fuels, resulting in increased global temperatures, threatening the very survival of humanity.

The Green New Deal proposed a major investment in energy conservation and renewable energy, creating thousands of sustainable jobs.  It proposed the serious regulation of the financial sector to prevent the reckless behaviour that led to the financial crisis, while ensuring that low cost finance was available for the construction of a low carbon economy.

The Green Party showed in its manifesto that it is possible to reduce our deficit while putting more people to work, protecting public services, and ensuring that the tax burden falls on those who can afford to pay.

Caroline Lucas, newly elected Green Party MP in Brighton, has spoken out against the economic destruction threatened by the ConDem government’s budget:

Cuts are not an economic inevitability.  They are an ideological choice. Politicians of all parties are now sharpening their axes to slash public spending, forcing those on lower incomes, who depend on public services the most, to pay the highest price for the recent excesses of the bankers.

That’s the challenge I’m issuing: for that political choice to be made.  It must be clearly asserted that we are not “all in this together”: that some had more responsibility for this crisis than others, and some benefited more from the boom that preceded it. Those who enjoyed the largest benefits must pay up now.  There is a choice.  We should ask those best able to pay to foot the bill through fairer taxation.  For that to happen, fair taxes, not cuts, must become the new big idea to replace today’s callous and uncaring cuts fanaticism.”

Only The Green Party has the policies and principles required to address the problems facing Britain and the world in these dangerous times. Please consider joining the Green Party or making a donation.