Another good day for Labour to bury bad news
Dear Hazel Blears,
As your chipmunky face is splashed all over the papers this morning, I thought that I would offer you some friendly words of advice. I have no doubt that a possible leadership challenge has crossed your mind. Nevertheless, on the evidence of several pieces of news that I stumbled across yesterday, you might wish to reconsider whether you want to pick up the political and financial tab for what Gordon Brown has done to our economy. However bad you think things are, multiply that by about a million times and you might be getting close to the true gravity of the mess we’re in and, amazingly enough, Gordon and his buddies are still making it worse.
First comes the motor industry. Yesterday I discovered that on the 23rd May 2009, the Government put in place a new Statutory Instrument (in effect, a law that doesn’t need Parliamentary approval) that altered the Industrial Development Act of 1982. Section 8 of this Act allows a Secretary of State (in this case, Peter Mandelson) to give financial assistance to industries if “a) it will benefit the UK economy or any part or area of the UK; b) it is in the national interest; and c) assistance cannot appropriately be provided in any other way. The purposes for which assistance may be granted …include: a) the promotion of the modernisation or efficiency of an industry; b) creating, expanding or sustaining productive capacity in an industry; c) promoting the reconstruction, reorganisation or conversion of an industry; d) encouraging the growth of an industry; and e) arrangements for ensuring an orderly contraction of an industry.” As this Act was brought in by Margaret Thatcher, I suspect she had modernisation and efficiency in mind, not bailing out dying firms like Vauxhall. Sadly, in 2003 Gordon Brown decided that he needed some more leeway to prop up failing industries in Labour heartlands so he brought in the Industrial Development (Financial Assistance) Act 2003, which set an upper limit of £3.7 billion for industrial bailouts but gave himself the option to increase this in future – which he duly did. In March 2008, the limit was raised in £4.3 billion, in March 2009 it rose to £4.9 billion and now in May 2009, Labour have expanded the goalposts yet again and increased the limit of financial assistance for any industry they choose to an eye-watering £5.5 billion. That’s right – the government can use anything up to £5.5 billion of taxpayers’ money to bailout firms, even if it’s for completely the wrong reasons. Is this what you want to inherit – a government that recklessly throws money away for political gain regardless of the financial consequences, leaving billions of pounds potentially locked up in corporate carcasses?
Second comes an interesting nugget from the excellent Lib Dem blogger Charlotte Gore. She spotted that yesterday another Statutory Instrument was sneaked through under the cloak of Jacqui Smith’s resignation. This time, Labour increased the total amount that the UK can loan to the IMF from £2.5 billion to £12.5 billion. To be honest, I think most of us had forgotten about the agreements that were reached at the G20 but they are very, very real. Gordon Brown committed the UK to ”provide a bilateral loan of $15 billion to the IMF”, which this new Statutory Instrument helps us achieve. Not content with wallowing in our existing debt, Gordon Brown is now digging us even deeper into this financial nightmare. You can’t stop this from happening – you would merely inherit all the superficial and expensive agreements made at the G20.
Finally comes a new publication from Policy Exchange, the centre-right think-tank, that was released yesterday. They have found that UK government spending is rising faster here than it is everywhere else (twice as fast as France and Germany) and it’s rising faster than in previous recessions – even the one leading up to the IMF bailout in 1976. But, bizarrely, only a third of this higher borrowing is being caused by the recession (e.g. through higher social security payments). 56% of this increased borrowing is in fact due to an extra £16 billion on the NHS, £9 billion on education and £41 billion on other government departments. We are going to have to borrow a record £175 billion a year to balance the books and national debt is going to double, yet Gordon Brown is just burning our money for the fun of it – and I’ll be willing to bet that this extra investment will make sod all difference to how good these services are. Is this what you want to jump into? Are you really ready to face this incomprehensibly serious problem?
Hazel, trust me, you jumped ship at the right time. After saying how much you want to serve your constituents in Salford, it will be interesting to see how serious you might be about a leadership challenge. Even so, you should remember that no Labour leader, present or future, is going to be able to dig us out of this black hole. In the last few days alone, our national liabilities have increased by £10.6 billion. Gordon Brown has crippled this country for years to come and you should think very carefully about whether you really want to be passed this toxic mantle.
Yours sincerely,
A.Tory
Witanagemot Blogs
A depressing post.
On the bright side, Chipmunk came sixth and last in the election for Deputy Leader, so the chances of her being allowed to succeed Brown are nugatory.
“Yesterday I discovered that on the 23rd May 2009, the Government put in place a new Statutory Instrument”. Once more, a grotesque misuse of a Statutory Instrument. An SI was supposed to be used when non-controversial legislation with cross-party support was required, or in a National Emergency. This unspeakable government uses SI’s to enact extremely controversial law which they wish to sneak in without public debate. The MSM could do a public service by casting light on the darkness, but signally fail to expose a far more monstrous act of corruption than hands in the till. Anybody else wonder why?
The wider effect has been to bypass Parliament on important matters. In this case a matter of the Executive spending money which has not been voted by Parliament.
Those who went to school when History was not a vehicle for indoctrinating young minds into the evils of the British Empire will remember that a King was beheaded for presuming to take exactly those powers that New Labour have so casually adopted.
When talking about Parliamentary reform, the separation of the Executive from the Commons is vital. Who is going to be the first Politician to suggest such a thing? Don’t anybody hold your breath.
Very good post LFAT. I also wondered if Chipmunk had the leadership in her sites. Personally I deem her to be one of the most competent members of the cabinet, and think she has been treated appallingly.
The problem is, we are indeed in such a mess, that it’s hard to see a way out of it full stop. All the ‘Statutory Instruments’ sneaked in through the back door, giving this government unprecedented levels of control are truly frightening. Their untameable acts of recklessness make them a law unto themselves, accountable to no-one/
There is no doubt in my mind that Brown has brought the country to it’s knees, and I pray to God someone, somewhere has the courage to bring about his downfall.
That note from the Policy Exchange is outrageous.
Brown is executing a pre-election splurge to bribe taxpayers with our own money.
Blears will never be Labour leader but that won’t necessarily stop her from trying. The expenses stuff has damaged her too much.
GOH, Labour have abused this power for too long. Anything that they don’t want to discuss just gets pushed through anyway, and this financial stuff that I came across was shocking enough (I dread to think what I’ve missed!).
Tory Poppins, for the first time since he became Prime Minister I seriously think Brown is danger – but it still needs someone senior to light the fuse. Blears was always an outsider.
Giles, the cavalier nature of this spending is disgusting and it’s a shame that this publication got buried in the news yesterday.
What’s astonishing is the ease with which these stories are hidden away.
Thanks for this letter, LFaT. It may have put a dark cloud over my morning to see all the reckless borrowing laid bare, but at least you’re holding Labour to account…
Nothing surprises me about this government. They will do anything to sneak in new laws and legislation behind the backs of us all. It’s just a shame that the people of the UK are told of the sly and questionable ways such things are done. So much for the open and transparent government promised to us by Blair and then Brown?
The thing is most people do not have an understanding of just how government worls or the way government passes things. Most people would howl with rage at if they knew. It is very depressing.
The UK has lost a lot of soldiers over the past few weeks, and so far this Labour government, even after flapping its chops that they are taking care of our soldiers; they still deprive them of kit, equipment, vehicles and extra troops to fight the war in Afghanistan and lie like hell to say ARE doing so.
Shameful, horrid Labour will never change.
I’m surprised that the Conservatives aren’t trawling this stuff themselves – a lot of statutory instruments are pushed through every day.
Worse to come. Gordon wants to spend even more. He needs a new chancellor and possibly a new governor of the BoE.
His entire reelection strategy is based on Labour spending while the Tories start cutting. He will add whatever he can get away with to public debt to bribe the voters.Its a very dangerous thing to attempt.
Gordon Brown has crippled this country for years to come
Decades to come?
“What’s astonishing is the ease with which these stories are hidden away. “
Yes! If only we had some kind of, oh, estate, let’s say, who could…report on these things. Perhaps a daily sheet you could buy, or a special programme you could watch or listen to. We could call it ‘News’..!
Bill, I agree. The higher he cranks up saving, the more the Conservatives will have to cut back and the more Labour can accuse them of cuts after the election. Very cynical. Very calculated.
James, you’ve got me there!
Julia, I know, it is disappointing but never underestimate the laziness of journalists.
I was voting Tory local then Tory 1 Euro and UKIP 2 Euro until I learned I had just one vote. I thought long and hard about who to vote for that would best give Labour a kicking. Or the Lib Dems down here in Nehaven.
I then voted Tory as they had a teller outside who kindly kept an eye on my dog! The only people I’d have trusted more with my dog is the BNP because the headlines procured from any animal abuse/recklessness would terrify their poor people. Except, of course, there weren’t any….
But yeah, Conservative all the way for a very bit of boring and conventional (small ‘c’ conservative?) electoral action!
** And yes I did post this comment on a Dale thread too but I’m a cripple and am allowed to be occiasionally lazy while demonstrating the kind of efficiency we’d all like to see from our public servants!
This really needs to get into MSM. It is outrageous that Brown is still spending money that we dont have. Why aren’t MSM digging for this? I can understand why the Daily Mirror and the Guardian dont want it exposed, but surely other papers or even Sky (forget about BrownBC).