Tag Archives: RBS

The story two-faced Tony Blair/Bliar successfully hid from the British public

The individual’s right to privacy, the public’s “right to know” and freedom of the press.

Now there’s a difficult balance to strike.

And then there are super-injunctions.

One of the reasons for granting one of the notorious secret super-injunctions was apparently that, if the man’s marital infidelity were revealed, his children might get bullied at school. I rather think that, if the guy’s kids get bullied because their father has been sticking his knob within someone other than his wife, then the guy should take responsibility. It ain’t for the public courts to help him try to hide his adultery.

But the protection of children versus freedom of the press can be a well-balanced problem – of which more later, with Tony Blair.

Yesterday, the Guido Fawkes blog ran a story that, since 2008 – unknown to the British public – it has been an offence punishable by imprisonment to reveal that Lakshmi Mittal, the richest man in Britain – who has donated £2 million to the Labour Party – has a super-injunction gagging all reporting of an unknown and unprintable matter.

And much was made in the press yesterday about the super-injunction with which former RBS boss Fred Goodwin tried to hide an affair he had with a married subordinate before the financial crisis of 2008. This was the super-injunction which also, technically, made it illegal to describe him as “a banker”.

There have been lots of worthy ‘public interest’ words about how the public deserved to know about Fred Goodwin’s affair because it may have affected his judgment in the period leading up to the point at which the British taxpayer had to fork out billions of pounds to save RBS.

I’m not convinced that Fred The Bed’s rumpy pumpy is too likely to have specifically contributed to RBS’s woes in any major way. I think that may be more to do with the near-meltdown of the entire world’s financial system – and, from my biased perspective, two Icelandic banks which stole the money I had invested in them. But stress, obviously, does affect people’s judgment in times of crisis.

If – let us say for argument’s sake – if… a Prime Minister were making important life-or-death decisions in a highly volatile post-war situation, the public would have a right to know if he were making those decisions under extreme personal stress, wouldn’t they?

Well, no, apparently the public would not have any right to know that.

Call me old-fashioned, but I think highly personal matters SHOULD be in the public domain if people – perhaps hundreds, perhaps thousands of people – might die because of a potentially wrong decision taken by a politician under extreme personal pressure.

Tony Blair – sometimes called Tony Bliar, a far more fitting spelling – the man who brought in the Freedom of Information Act – claimed he wanted ‘open’ government.

Yet, when his 16 year old daughter Kathryn attempted suicide on or around 13th May 2004, he and his chaps went to the editors of the main British newspapers and had all reporting of the attempted suicide barred from publication because it was a solely personal, private matter. Rupert Murdoch barred publication of any reporting of the incident in any of his newspapers worldwide; I do wonder what sort of political payback he could expect for doing that.

It remains one of many stories known by but not reported in the UK media. Many people who knew about the attempted suicide at the time agreed and still agree with the blanket non-reporting of the fact it happened. They believe that it was and is a family tragedy and there is no “in the public interest” factor involved; they argued and argue that the physical and psychological protection of the individual child outweighs any public right to know. I disagree.

In a recent blog I mentioned I tried to commit suicide when I was 18.

The Blair daughter suicide bid happened almost exactly one year after the invasion of Iraq, which was in an even worse mess and the Abu Ghraib torture pictures had recently been publicised. The suicide bid was rumoured to have been caused by a combination of exam stress and bullying by schoolmates about her father’s involvement in Iraq. Which is where that earlier reference to school bullying comes in.

The Blair suicide story is not an urban myth. I know someone who, at the time, was connected to the Blair daughter’s Roman Catholic state secondary school, the Sacred Heart in Hammersmith. I heard about it at the time because, obviously, the school knew it had happened.

I first heard the story mentioned in public by an Irish comedian at the August 2004 Edinburgh Fringe. The story had been published in Ireland and abroad but not in the UK and not by any news sources controlled by Rupert Murdoch.

At the time, there were unexplained stories in the British press that Blair was considering leaving office. No reason was given in the reports as to why Blair might leave office beyond, occasionally, some vague reference to “family”. And it seemed to me that Blair suddenly visibly aged at that time.

If those stories were true and he was indeed considering actually resigning for family reasons then it does not seem to be a vast leap of supposition to believe that he was making important decisions of life and death in an extremely volatile and unpredictable high-pressure post-Invasion situation while under extreme psychological stress.

The reasons for his stress might well have been “personal” and “private” but, when personal, normally private events affect national and international decisions and potentially the deaths of hundreds or thousands of people, the public has a right to know the circumstances under which those decisions are being made.

There ARE cases where the public’s “right to know” and freedom of the press over-ride people’s “right to privacy”.

7 Comments

Filed under Newspapers, Politics, Sex

The distortion of the UK tax system by socialist ideology

For a few months, when I was much younger, I read the Sunday Telegraph.

I stopped after reading an article on the UK income tax system. I could see no logical flaw in the newspaper’s argument, but it made me morally uncomfortable.

The article argued that a tiered system of income tax in which higher earners pay a higher percentage of their income in tax is illogical, unfair and both economically and morally indefensible.

Intellectually, I had to agree with the Telegraph‘s logic. The argument went like this…

In a capitalist system – or in the mixed capitalist system which we have – people are, by and large, paid their worth to the company and industry in which they work and to the country’s economy in general. The ultimate goal is always to maximise profits to the company and to the shareholders. So, with competition from other companies for the better executives and workers, a fair salary is reached for each working person by the workings of the market.

It is morally correct that people who earn more should pay more to the community in taxes. But that ideal and morally correct situation is reached by a flat rate tax on earnings not by a tiered system.

Someone who pays 20% of a £100,000 salary pays far more to the community than someone who pays 20% of a £25,000 salary. They pay according to their wealth. As their salary increases, their tax payments increase. They are taxed according to their ability to pay at the same flat rate. And, of course, it is right that people who earn a low salary beneath a certain amount should pay no tax.

The tiered system we currently have in which people on a high salary may have to pay 40% of their salary while people who earn a lower salary may have to pay only 20% of their salary is not moral, is not fair, it distorts the market forces which create ‘fair’ wages and it is punitive on the more successful workers who should be not discouraged but encouraged.

The fact that some higher earning people may be able to ‘cheat’ the system with clever accountants is not relevant. Distortions like that are inevitable in any system and are the fault of the government’s incompetent bureaucracy – they should prevent those frauds. It does not affect the principle that a flat rate tax system is fair to all taxpayers and the fact that a tiered tax system is fundamentally unfair – a political decision not a moral or economic decision.

If there is a tiered tax system, it distorts the market forces which decide salaries because, if people are losing money for reasons of political tax ideology not for genuine economic reasons, their salaries will have to increase to take account of the loss. Thus you get distorted salary scales.

A tiered tax system makes no economic sense and is morally unfair. It’s object is to blindly redistribute wealth on ideological grounds.

I could not and still can’t disagree with the cold logic of this argument. Yes, someone who earns more should pay more. But why should they pay a higher percentage of what they earn? Taxing higher earners a higher percentage is blind knee-jerk socialist ideology not economics.

I felt morally uncomfortable with the fact I could not fault the logic in the article and stopped reading the Sunday Telegraph because I felt somehow my moral values were being undermined and skewed by cold logic.

This quandary in my erstwhile youth was brought back to me yesterday when I read a report in The Scotsman that RBS, which the taxpayer had to bail out with millions and of which the government owns 83%, was about to pay 100 members of its staff £1 million each in bonuses.

The chief executive of the Royal Bank of Scotland, of course, has been awarded a pay-and-bonuses package worth £7.7 million for 2010. So his 300 underlings getting bonuses of £1 million are merely getting the left-over scraps.

These awards were made at the time RBS was making a £1 billion loss.

Coincidentally yesterday, I also caught up with a small piece in Saturday’s Daily Telegraph about Tony Blair’s Sports Foundation – a charity – which, in its first financial period, made £348,233 of which it spent £33,929 on charitable activities and £37,621 on its staff.

So I am in two minds about high earners and extreme right wing politicians like Tony Blair.

Leave a comment

Filed under Finance, History, Newspapers, Politics

Bankers, Cockney rhyming slang and a very wise woman

There’s a report out today about the British banking system. About whether the banks are too big. The problem for me isn’t size, it’s efficiency – and I wish I could say that in reference to other areas of my life.

The words “piss-up”, “brewery”, “in”, a”, “organise” and “couldn’t” spring to mind and the Cockney rhyming slang for “wankers” comes as no surprise to me.

For many years, my current account has been with Bank of Scotland; I also have an account with Halifax, which is part of Bank of Scotland. Both are now owned by Lloyds Bank.

Because of the lack of Bank of Scotland branches in London, I have long paid money into my BoS account via Halifax: I just walk into any Halifax branch with my BoS Cashcard and pay money into my BoS account.

If I want to pay a bill – a gas or electricity bill or anything else, I can now just go into any branch of Lloyds Bank with the appropriate paying-in slip and pay the bill using a Bank of Scotland cheque.

Yesterday, I attempted to pay a Virgin Media cheque into my own Bank of Scotland current account at a Lloyds branch.

I was told I could not pay anything into my Bank of Scotland current account – not a cheque, not cash – because, although Lloyds own Bank of Scotland, it is “a separate bank”.

Well, chums, Bank of Scotland and Halifax are equally separate, but I can still pay money into BoS via Halifax – and I can still pay a bill via Lloyds using a Bank of Scotland cheque.

So I can pay money into other people’s accounts with other banks via Lloyds, but I cannot pay money into my own Bank of Scotland account, despite the fact Lloyds own Bank of Scotland.

We appear to have entered a surreal parallel universe here.

So I am moving my account to Royal Bank of Scotland. They have not-a-lot of branches in London, but they do own NatWest Bank and I can simply walk into any NatWest branch and pay money into a Royal Bank of Scotland account. No problem.

Lloyds may not be too big to survive. But it is certainly too incompetent to survive.

I remember standing in Liverpool Street station in the heart of the City of London one Friday afternoon at 4.30pm watching City workers going home, early, paralytically drunk. Not just swaying but staggering, their limbs jerking erratically like headless chickens with Parkinson’s Disease wearing dark business suits.

These were not old drunken men; they were bright young City dudes in their twenties and early thirties and they must have been drinking all afternoon, while foggy-mindedly running the UK economy in the financial powerhouse that is the City of London.

I had money in two Icelandic banks when their entire financial system disintegrated in 2007. Those two banks were each more efficient than Lloyds Bank – and they both crashed. I suspect those Icelandic bankers did not drink ‘on the job’.

British bankers do.

Whither the British banking system?

Whither Lloyds?

The mother of a friend of mine used to live in various dodgy foreign countries (her husband was in the RAF and she later worked for NATO). She wore a series of thin but pure gold bracelets on her wrists because she knew, with them, she could buy her way out of any country if it suddenly collapsed.

A very wise woman.

Leave a comment

Filed under Consumer Affairs, Finance, Politics