Posts Tagged ‘Lloyds’

Florence on the Fabians and the Labour Right

August 15, 2016

Florence, one of the great commenters on this blog, posted this comment on the links between the Fabian Society and the Thatcherite entryists on the Labour right.

The Fabian Society is a small group, they say dedicated to networking, I call it as a closed shop for privilege, the white middle class, and the political dynasties. The Fabian Society has also been spotted hovering in the shadows with the Blairites, such as Benn and Kinnock, and especially those who seem to be trying to redefine feminism to their own liking, Jess Philips, Jo Cox, Tessa Jowell, Hariett Harman, to name but a few in Fabian Women’s section. They run a mentoring programme, and in their own words,

“The programme has already delivered some incredible results for its 125 participants and the Fabian Women’s Network. Mentees have been selected or shortlisted as Parliamentary candidates, as candidates for the London and Welsh Assembly with brilliant support from other mentees. Many others were shortlisted. 27 women have been elected into local government positions and a number of women have gone on to become school governors and trustees on the boards of charities. The majority has gained promotion, been nominated for awards and written or spoken in national media.”

Not bad for a society with only 6,000 members in total. A lot of influence for the few. Don’t get me wrong, women’s mentoring to prepare for public life is great, it’s just that an awful lot of the “parachuted” or more correctly imposed New Labour candidates into winnable Labour constituencies proves there is a link between THIS Fabian programme and the actual elected MPs, notably those who are very vocally anti- Corbyn and anti-Socialism. This also shows how far the webs reach between the PLP problems, and the disconnect with the actual membership and in the country. The graduates of the programme seem to know very little about the Labour movement or socialism, it’s aims and more about neo-liberalism as a “good thing”, and of course Corbyn as democracy as a “bad thing”.

https://fabianwomen.org.uk/fabian-women-mps/https://fabianwomen.org.uk/fabian-women-mps/

The source of Fabian Society funding also bears some inspection, where there are a number of corporate donors and sponsors are powerful lobbyists for corporate interests, and not known for their support for socialist ideals- such as Barclays and Lloyds banks, Bellendon PA (political lobbyists) the Portman Group (lobbyists for the drinks trade), Sanofi – a large pharmaceutical, and so on.

http://www.fabians.org.uk/about/how-we-are-funded/http://www.fabians.org.uk/about/how-we-are-funded/

This is depressing. The Fabians have always had a reputation for being ‘milk-and-water’ Socialists, but I used to have far more respect for them than I do today. I was briefly a member of the society back in the 1980s, when I felt I had to do something to stop the rampant privatisation under Maggie Thatcher. My great-grandfather had been a member, and I was impressed with the intellectual work they’d done. This was a time when there was still a variety of opinions in the Society. Indeed, one of the sources I’ve used for my blog posts and pamphlets against the privatisation of the NHS was a Fabian pamphlet by Robin Cook against it. It’s not just from Florence that I’ve heard about the Fabians forming part of the network of Blairite groups. A friend of mine also remarked on it, with the suggestion that if Corbyn wanted to destroy the Blairites, he could do much by simply expelling the Fabians.

It’s a profoundly depressing development for the organisation of Sidney and Beatrice Webb, George Bernard Shaw, and, briefly, H.G. Wells. The Webbs did much to promote Socialism in Britain, and their report on the state of British healthcare laid some of the foundations for the development of the NHS decades later. It’s now become a mouthpiece for the corporate shills trying to privatise everything, and break up that greatest of British institutions.

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From 2013: Private Eye on Energy Miss-selling and Connections to Banks

March 22, 2015

One of the other scandals to have hit this country is overcharging and miss-selling by the energy companies. The majority of people in this country would like to see the power companies renationalised. It has, however, become the modern economic dogma that as much of the economy should be in private hands as possible, ever since they were privatised, along with gas and water, by the Tories. Nevertheless, public outrage has been so intense that Cameron recently made a few gestures towards getting energy prices. Much more optimistic is Ed Miliband’s pledge to lower electricity prices and to make sure that they stay down and affordable.

In their edition for 19th April – 2nd May 2013, Private Eye published this article on Scottish and Southern Energy’s miss-selling. They also revealed the involvement of senior bankers, including officials from the Bank of England, who should have been guarding against such fraud.

Energy Miss-Selling
Fried Rice

The shockwave caused by the record £10.tm fine for Scottish and Southern Energy (SSE), punished by regulators for lying to customers about non-existent savings, has reached all the way to the Bank of England.

According to Ofgen, there was a “woeful catalogue of failure” by SSE managers, who allowed “a culture of miss-selling to continue. They weren’t doing enough to prevent sharp selling practices from their selling agents. They actually provided misleading sales scripts.”

All this is very embarrassing for Lady Susan Rice, SSE Group’s senior independent director, who has been on the SSE board since 2003 – and since 2007 has also been a director of the Bank of England where, somewhat alarmingly as a seasoned blind-eye turner, she chairs the audit and risk committee.

“Independent” directors are meant to ask uncomfortable questions that puncture “groupthink”. But this clearly didn’t happen at SSE, which caused “substantial harm” to its customers, Ofgem says. “Failings did not just take place on the doorstep but also in the management.”

Attempts to rein in misbehaviour were also ineffective. While “SSE terminated doorstep sales in July 2011, failure in telephone and in-store sales persisted”. SSE staff were given sales scripts which claimed that switching to SSE was “just like the government intended”. One dishonest spiel ran: “What I’m here to do today is show you a government thing called deregulation which results in your energy prices being lowered by doing nothing at all.” The false claims actually led to bigger bills for customers.

“Lady Susan Rice is, and will continue to be, a highly valued director on the Court of the Bank of England,” was the reply when the Eye asked if the SSE scandal meant she should perhaps resign from her Threadneedle Street Post.

Rice was appointed at SSE thanks to her other job as managing director of Lloyds in Scotland, which she fits in between sitting on Scottish first minister Alex Salmond’s council of economic advisers, chairing the Edinburgh Festivals forum and the city’s book festival, chairing the Chartered Banker Professional Standards Board and sitting on the Oxford Said Business School advisory council. Not to mention the National Galleries Scotland’s patrons committee and something called the Finance Group on Climate Change.

Busy bee Rice isn’t the only member of the miss-selling SSE’s board with a banking background. Chairman Lord Robert Smith was a director of Standard Chartered, which was fined $340m for money laundering in deals with Iran – and like Rice he has a government job, too; last May Nick Clegg announced that he would lead the government-funded Green Investment Bank. He is also chairing the 2014 Commonwealth Games Organising Committee.

Also paying less attention that he should have been as SSE was Richard Gillingwater, a director (£54,000 last year) since 2007. Eye readers will remember him as chief executive of the government’s Shareholder Executive when it oversaw the sale of taxpayer-owned development fund CDC’s fund management arm, Actis, to its former managers for a pittance. Gillingwater is now chairman of CDC itself and has just retired as dean of the Cass business school, teaching up-and-coming suits, er, how to run businesses properly.

In other words, the culture of miss-selling in the banking sector, which led to the collapse of Northern Rock, and the present global economic crisis, spread to the energy companies, on whose boards bankers sat. Contributing to the banking crisis was the fact that the ‘independent’ directors there, who were supposed to check miss-selling and misconduct there, did no such thing. They turned a blind eye, just as Rice turned a blind eye to miss-selling by Scottish and Southern Energy.

Deregulation has not caused energy prices to come down, just as it the deregulation of the banks did not lead to improved and responsible trading. Anything but. It’s time these sectors were cleaned up. And Miliband is a far better bet to do this, than either the Tories or their Lib Dem sycophants. They won’t do anything at all.

Lenin on Britain as International Financial Creditor

March 29, 2014

Lenin Pic

Lenin: Russian Revolutionary and critic of international capitalism

I’ve already blogged on the harmful way the British financial sector is geared towards external investment, with the result that the vast concentration on developing it since Margaret Thatcher has decimated British manufacturing. British investment in the Developing World, along with the rest of the financial aid offered in the form of loans, has also contributed to the massive debt accrued by these nations and the consequent damage to their economies. I believe that Britain is now one of the world’s major creditors, owed billions by the nations in which she has invested. Private Eye has criticised the way British aid agencies, such as the Centre for Development, have been transformed into commercial funding agencies to allow British banks to invest for profit in various enterprises in Africa and the Developing World. These enterprises are purely commercial, and do not provide any valuable services to the countries in which they are established – such as alleviating mass poverty, developing food or water supplies, providing better and more widespread medical care – other than a dividend for their shareholders and investors.

Great Britain as Global Creditor in 19th Century

This financial exploitation of the Developing World has its roots in British and Western imperialism. Already by the beginning of the 20th century economists and critics of capitalism, such as the leader of the Russian Communists, Lenin, had noticed the change in Britain from an industrial economy to one based on international finance. In his Imperialism, the Highest Stage of Capitalism, Lenin states

“Great Britain,” says Schulze-Gaevernitz, “is gradually becoming transformed from an industrial into a creditor state. Notwithstanding the absolute increase in industrial output and the export of manufactured goods, there is an increase in the relative importance of income from interest and dividends, issues of securities, commissions and speculation in the whole of the national economy. In my opinion it is precisely this that forms the economic basis of imperialist ascendancy. The creditor is more firmly attached to the debtor than the seller to the buyer.”…

The rentier states is a state of parasitic, decaying capitalism, and this circumstance cannot fail to influence all the socio-political conditions of the countries concerned…

Britain without Industry or Agriculture: Hobson on the Impact of European Conquest and Investment in China

He then cites the Liberal journalist, Hobson, on the destructive effects on the domestic economy caused by dependence on the colonies. Considering the partition of China by the European powers, Hobson predicted that this would lead to the de-industrialisation of Britain and the other European countries. The country would, according to Hobson, be dominated by wealthy aristocrats living off their investments in the Far East, surrounded by the servants and a few tradesmen they supported. But domestic industry would completely vanish as it was overtaken by cheaper competition from the Middle Kingdom.

The quotation from Hobson runs:

The greater part of Western Europe might then assume the appearance and character already exhibited by tracts of country in the South of England, in the Riviera, and in the tourist-ridden or residential parts of Italy and Switzerland, little clusters of wealthy aristocrats drawing dividends and pensions from the Far East, with a somewhat larger group of professional retainers and tradesmen and a larger body of personal servants and workers in the transport trade and in the final stages of production of the more perishable goods; all th emain arterial industries would have disappeared, the staple foods and manufactures flowing in as tribute from Asia and Africa … We have foreshadowed the possibility of even a larger alliance of Western states, a European federation of great powers which, so far from forwarding the cause of world civilisation, might introduce the gigantic peril of a Western parasitism, a group of advanced industrial nations, whose upper classes drew vast tribute from Asia and Africa, with which they supported great tame masses of retainers, no longer engaged in the staple industries of agriculture and manufacture, but kept in the performance of personal or minor industrial services under the control of a new financial aristocracy. Let those who would scout such a theory [it would be better to say: prospect] as undeserving of consideration examine the economic and social condition of districts in Southern England today which are already reduced to this condition, and reflect upon the vast extension of such a system which might be rendered feasible by the subjection of China to the economic control of similar groups of financiers, investors, and political and business officials, draining the greatest potential reservoir of profit the world has ever known, in order to consume it in Europe. The situation is far too complex, the paly of world forces far too incalculable, to render this or any other single interpretation of the future very probable; but the influences which govern the imperialism of Western Europe today are moving in this direction, and, unless counteracted or diverted, make towards some such consummation. Hobson, Imperialism, 1902, pp. 1o03, 205, 335, 386, cited in Lenin, Imperialism, The Highest Stage of Capitalism, in Lenin: Selected Works (Moscow: Progress Publishers 1968) 243.

British Economic Decline Today, and Modern China as Centre for Investment

Clearly, the situation isn’t quite like Hobson predicted. Britain no longer has an empire as such, though she still has an extensive commercial system tying her former colonies to economic dependence. China is now a free nation, that has become an economic superpower in its own right. We also still have some manufacturing industry and agriculture. Nevertheless, it did provide a roughly accurate prediction of the way the British economy has been devastated to become dependent on a financial sector orientated towards overseas investment, including that of China. This can also be clearly seen in the adverts for one of the main British high street banks – I can’t remember whether it’s Lloyd’s, TSB or Barclays. The advert shows various ‘quaint’ customs in China, such as giving presents of money in red envelopes, or fishermen using birds to catch fish, before ending with the headline ‘-: the world’s local bank’.

Now I don’t begrudge the Chinese or anyone else the development of their economies. I would, however, like some of the investment we have directed to the outside world redirected inwards to stimulate and support British agriculture and industry here, rather than simply providing an income to the small part of the British economy consisting of the City of London.