Monthly Archives: November 2014

Our Disgraceful Finance Sector

People would have been shocked today to hear of yet another scandal involving our beloved banks*. Apparently they’ve now been caught fixing foreign exchange rates, and fines totalling £2bn are being handed out to all the usual suspects including HSBC, Barclays, Royal Bank of Scotland (being owned by the taxpayer doesn’t seem to inhibit their criminal activity), plus UBS of Switzerland and America’s J P Morgan and Citibank. We’ve become used to hearing these tales of financial malpractice, but what was particularly galling in this case was the fact that the rate-fixing was going on until October last year. ie 5 years after the crash of 2008, and even after the previous LIBOR fixing scandal involving the exact same banks. In other words, these people have no intention of changing their behaviour no matter what happens around them. Of course criminal prosecutions might change their behaviour, but as usual, although the banks have been fined, no individuals have been held criminally accountable for what in everyone else’s eyes is blatant fraud.

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Price Waterhouse – helping write tax laws and then advising companies how to avoid the laws they’ve just written! Picture © Unshaken City

However, as shocking as all this is, far more insidious was the announcement earlier this week that the Labour Party has received £600,000 worth of free advice from PwC (Price Waterhouse Coopers) the accountancy firm, to help formulate its tax policy*. Now, why would PwC want to give free advice to the Labour Party? Ah yes, that’ll be because PwC makes a lot of money advising businesses on how to avoid tax, and that job will be much easier for them if they get to help write the legislation which they can then advise businesses how to avoid. Absolutely disgraceful, and Labour’s justification for it that PwC are experts in the field holds no water whatsoever. PwC, like all the big accountancy firms, are a threat to the very fabric of our society, as they are at the heart of the system which undermines government revenue collection, and so forces Austerity and poverty on millions of ordinary people. To have them help formulate tax legislation is simply putting the fox in the charge of the chicken coop. Just imagine if the government wanted to formulate new legislation on paedophiles, and put Gary Glitter in charge of the inquiry. And then justified it by saying Gary Glitter was chosen because he’s an expert in paedophilia! There would be justifiable outrage at such nonsensical logic, and yet the government does this all the time with financial legislation, completely undermining our democratic processes. Whether it’s through companies framing legislation like this, or the so-called ‘revolving doors’, where individuals pass effortlessly between Whitehall and the corporate world, the tentacles of business are firmly entwined in our legislative processes, ensuring we now live in world where those with money control all the levers of power.

We need change. The Tory Party, as the party of business, are of course beyond hope in this area, but with the Labour Party now acting in exactly the same way it should be absolutely clear, if it wasn’t before, that they offer no meaningful alternative either. The only hope for getting a government which represents the interests of ordinary people is to sweep both these parties into the dustbin, and start afresh with a completely new breed of politician, driven by a desire to help other people rather than just to look after the interests of themselves and their cronies.

* Bank Fines: Labour Party/Price Waterhouse Coopers: