East Midlands Green Party Blog


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Banker’s Bonuses

tax bankers not bedroomsplease sir I want some more cartoon

 

As part of our month’s focus on money and debt, this powerful article is written by Peter Allen, one of our candidates from Derbyshire, East Midlands, looking at Banker’s Bonuses in the light of national and international crisis:

 

With living standards in decline, a million young people unemployed, a crisis in the NHS and social care,  and rising levels of poverty and homelessness,  whose interests  might the government be trying to defend (at public expense) in the European Court ? … why bankers of course!

 

A few years back, after the financial crash, largely  caused by irresponsible behaviour by greedy bankers trying to line their own pockets, all politicians joined in the chorus of popular anger against them. Cameron and co accused Labour (with some justification! ) of allowing bankers bonuses and pay levels to get out of hand.

 

It was a sentiment that spread across Europe ( although in truth the amount of bonuses paid out in London was far higher than elsewhere in Europe) and has led to a new regulation ( agreed by all the other governments but being legally challenged by the UK ) which caps the bonuses payable to bankers. The cap is pretty generous (100% of their huge salaries or 200% “if shareholders agree”) but is being opposed by Cameron and co who argue that “it will just mean banks increase basic salaries instead”.

 

Perhaps the UK government is actually injecting a reality check, knowing that financial institutions are highly skilled in getting round regulations? Certainly the evidence of the last few years is that, having been bailed out by European taxpayers, they intend to carry on “business as usual”, making speculative decisions in the interests of short term gain, rather than investing for the long term benefit of Europe and the world.

 

The Green Party was not against injecting public money to stabilise financial institutions after the crash of 2008. but it said then, and it says now, that the bailout should not have been unconditional, allowing banks and bankers to continue to behave as previously. Rather public money should have been used to invest in a transformation of our energy supply, transport infrastructure and housing stock, creating decent jobs and starting to seriously address the imminently devastating impact of climate change.

 

In order to ensure the above banks will have to be properly regulated. This will require agreement at international level by governments committed to real reform. The election of such governments will require the creation of popular movements for radical change, across Europe and beyond, to challenge austerity and promote greater equality. Green MP Caroline Lucas, speaking to New Internationalist magazine in advance of the launch of the People’s Assembly earlier this year, summed it up

 

” It was an international banking crisis and this is an international crisis-and although each country has very different circumstances international solidarity and working together is absolutely crucial. Capitalism is international and people’s movements need to be international as well”

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Money, Money, Money – Must be funny

All pain no gain GP postertax bankers not bedrooms

This month East Midland’s Greens are putting banking and debt under the microscope. There are more posts to follow with this one giving an overview. In this age of globalised markets and globalised debts we need to re-examine the nature of money. In the USA there is a partial government shutdown as Republicans and Democrats battle out what to do about mounting debt. Their decisions may be behind closed doors and across the ocean but waves will be felt near and far.  Here in the East Midlands, at the time of the harvest we examine our national economic harvest of the year and the forecast ahead. Did you know for example that under the coalition government in the 2012 -2013 financial year borrowing had gone up £300 million, while at the same time the total debt had risen to 75.2% of our gross domestic product (GDP), up from 71.1% of GDP at the end of May 2012? These figures were reported by among others, BBC News Business, on 21/06/13. Such figures did not lead to a good economic yield at the year’s Autumn.

75 % of the UK economy is debt as borrowing rises. That is not a good harvest, with most of the crop spoken for. Much of this extra borrowing is subsidising banks and big business. Meanwhile public services are being cut and in certain areas shredded. Bankers bonuses are back in the billions while our national and personal debts are rising. Many people rely on payday loans with typical  apr at 3000 – 4000 % and more.  Amelia Gentleman’s article ‘Buy Now Regret Later? The Secret of Brighthouse’s Success’ The Guardian, Friday 4 October 2013 illuminates this culture of a society fueled, not by credit, but by debt.

Far from getting ourselves out of debt we have an economic system based on debt.  Our ability to pay off personal debts is being undermined. Thanks to savage cuts there are less full-time or secure jobs and more zero hours contracts, particularly for young adults, offering the most uncertain present and future. Students start their  working lives with huge debts and less employment prospects. It is no coincidence that one of the largest and ever growing proportion of homeless population are young people. Another group with rising debts and homelessness is families. Bedroom tax hits low income families, among many others, as do skyrocketing house prices. Austerity is increasing debt, with the cost of living far greater than a growing number of people’s ability to pay for even the most basic costs of shelter and survival. The Charity Crisis reports a 31% rise in homelessness in 3 years. This is attributed to rising debts, due to benefits cuts and rising house prices and living costs. Broken homes can become more common, along with domestic abuse. In the Independent 03/09/13 and The Mirror on 04/09/13 article accuse The Police (operating on decreased numbers and funds) of referring less domestic violence cases to Crown Prosecution  Service while allegation numbers rise by 10 % and prosecution dropped by 11.1% last year. This is one example of the harvest of our broken economic system, with police force targets having to be met under a 20% decrease in funds and a new level of red tape; Police Commissioners dictating regional priorities. There is toxic irony in the Tory’s rhetoric on family values when they are delivering policies across the board which raise the debts and threats to the majority of families, both in and out of paid work.

These insane policies are enabled by the Liberal Democrats, with inadequate opposition in Labour policies, with the nation remaining controlled by rising debt and a failing banking system. Credit Union Empowerment, measures to encourage responsible lending and banking reform are core Green Party policies.  The Green Party and Green Group Europe have long called for financial reform, including a Robin Hood Tax, or financial transaction tax which means bankers would help pay for high risk banking practices. This would encourage a more responsible approach and one in which cost of failure is not predominantly levied on citizens as it so far has been. This sensible taxing of bankers is something the coalition government are working against in both the UK and Europe. The government are not protecting a stable economy. They are ensuring one of high risk, imbalance and increasing debts and insecurity for most people. Citizens are being pushed into paying national debt by getting into more personal debt and it is not working.

The Green Party do not believe the poorest should be getting poorer while the rich get richer , nor that this is inevitable but a symptom of a broken system that needs fixing. One that has not been fixed by successive governments, each too lacking in vision and courage. Austerity is failing in its promise to build productivity in the private sector; small and medium sized businesses are not secure or significantly growing.  Foodbanks are growing. Rajesh Mirchandani reported for BBC Newsnight on 11th July 2013 that ‘the Trussell Trust, which runs food banks, reported a 21% rise in the number of people who said they did not have enough money for food because of problems with benefits. “A clear link” exists between the reforms and the increasing popularity of food banks, the Trust’s boss said. Conservative minister Lord Freud has said the two factors are unrelated.’

harvest

The Financial Times articles are often scathing about Government’s blinkered Economic Policy. One such article by Trevor Greetham is dated  02/09/13. Greetham states that ‘in encouraging a housing boom the government are forcing the next generation into debt in the hope the government can improve its own financial position.’ I personally wonder if it is so radical to suggest that a government should serve the interests of its citizens? We appear to have an inverted system under current policies. Trevor Greetham notes the failure of the government’s economic policy to recover the private sector and predicts people will have greater debt, not less, when recession does end. This will guarantee future turmoil.  The article recommends jobs creation and improvement of infrastructure to overcome the ‘economic stagnation’ caused by delays in recovery and unemployment.

Austerity is costing jobs and creating unemployment and an atmosphere of despair and blame.  The Green Party have long been calling for a Green New Deal of job creation, protecting and building valuable skills, sustainable infrastructures and lessening levels of unemployment  instead of increasing unemployment then using those without paid work (or not enough to live off)as scapegoats. We are calling for risky practices by bankers to be taxed in order to discourage and absorb  shocks and imbalances in the financial sector. The debt must not continue to rest on the shoulders of those least to blame and least likely to be able to carry the burden.  Current government policies are increasing debt for most people now and ensuring debt for most people in the future. We need not be tied to a cycle of debt. There is an alternative and the Green Party is at the heart of it. Be part of it.

Join the Green Party Link: https://my.greenparty.org.uk/civicrm/membership/joining

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The Voice / Soundtrack – just for fun:

Forbes is among the publications that has drawn parallels between the Great Depression and today’s crisis. There is a song from those bygone days by Bob Miller that is disturbingly appropriate today. This inspired me to write a soundtrack to banking reform.

Soundtrack for Calling for Bank Reform:

  • Bank Failures – Bob Miller
  • The Man that Broke the Bank at Monte Carlo – Music Hall Classic
  • I Need a Dollar – Pixie Lott (original Aloe Blacc)
  • Umbrella – Rihanna
  • Hands – Jewel
  • Stand and Deliver – AntMusic
  • Money, Money, Money – Abba
  • With a Little Help From My Friends – Beatles


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Fight Fracking Threat to Local Life in Lincolnshire Wolds

biscathorpe1
No to Fracking
A planning application to drill for oil at Biscathorpe has been made by Egdon Resources Ltd.  This company holds licenses to develop the gas-shales by fracking between Lincoln and Gainsborough, and in the North Somercotes area.
It is unlikely that many will know Biscathorpe.  It is an idyllic and unspoilt beauty spot in the heart of the Lincolnshire Wolds, with two fords crossing the River Bain, a lost medieval village and a picturesque church.
There is much concern about the consequences of drilling for oil in this area.  The impacts could include pollution of the river, damage caused by lorry traffic, noise and lighting, upsetting the fragile local ecology, and an end to the beauty and tranquillity of the neighbourhood.
Furthermore, following the recent IPCC report that there has already been enough oil and gas discovered to result in catastrophic global warming, there is the wider concern of additional oil exploitation in Lincolnshire.
On Sunday next, 13th October, a walk to Biscathorpe is being planned by the East Lincolnshire Green Party, at which all who might be concerned about this issue are welcome to join in.  Katarina Boettge, the Green Party’s East Midlands candidate for the European Parliament, will be participating.  Walkers are invited to meet at 12 noon on the green, Neve’s Garden, in Donington-on-Bain, for a stroll along the Viking Way to Biscathorpe for a picnic.  There and back, the walk is about three miles.  Sturdy footwear is advised, particularly if wet.
More information about the campaign to oppose the Biscathorpe oil well and to keep fracking out of Lincolnshire can be found at http://transitiontownlouth.org.uk/frack.html
Contact:  Maureen Barnett (01472 840674)