A strange turn of phrase and tone on Today programme

The LIBOR low-balling story continues on but there was an odd moment in the Today programme's interview with Lord Myners this morning (from around 08:10), in fact there were several. First Lord Myners categorically denied that he did not speak to Paul Tucker or anyone else at the Bank of England and said he was sure that nobody else at the Treasury would have done so. I note that this does not include Ed Balls then no officially longer in the Treasury but very much Gordon Brown's chosen man for economic matters. Nor does the denial include the great clunking fist himself.

The next point was the way certain matters were part of whose responsibility, this was the whole problem with Gordon Brown and Ed Balls tripartite regulatory framework; things could fall between the three parties.

The most interesting part is from 4:50 as John Humphrys lays the groundwork for the 'if Labour figures did push for lower LIBOR then it was in the national/public interest'. Unfortunately for the BBC, even Lord Myners wouldn't agree to that line of thought. I think it is a line that the BBC may well push if they have to. Don't forget the basic BBC message - VOTE LABOUR.

Does Ed Miliband have no shame?

Ed Miliband: the leader of the Labour party, a member of the last Labour government wants us to believe that he is against 'crony capitalism'.

It seems that I am not alone in thinking this somewhat brazenly amnesiac.

The Labour party is after all the party of Drayson, Powderject & vaccines, Benneton, Mills/Jowell, Ecclestone & Formula 1 smoking ad ban, Lakshmi Mittal & letters to the Romanian Government, 'Sir' Gulam Noon, Hinduja passports, the Union Modernisation Fund, “we must do something for Branson, Tony”, Paul Myners, Loans for Lordships, etc. etc. etc.

Against crony capitalism? How stupid does Ed Miliband think we are?

How much s**t do the BBC think they can throw at the Conservatives so as to expunge the memory of the Labour years?



Thanks to Alex Masterley and Guido Fawkes for some of the examples.

How are the Labour leadership elections going? (09.06.10 12:30 update - part2)

It looks as though the Labour party have finally got to grips with their website:

Diane Abbott - 33 - Nominated but needed the wholehearted support of David Miliband and Jack Straw? And also the nomination of the loathsome Keith Vaz.

Ed Balls - 33 - Nominated, just and without needing the nomination of Gordon Brown.

Andy Burnham - 33 - Nominated.

John McDonnell - 0 - Apparently withdrawn in favour of a woman going through to the next stage. Absolutely nothing to do with seemingly advocating the murder of Lady Thatcher and excusing IRA terrorism is still popular within the Labour party.

David Miliband - 81 - Nominated ahead of his younger, even smugger, brother; he himself nominated Diane Abbott so not totally convinced he is the right man for the job.

Ed Miliband - 63 - Nominated and so probably even smugger than usual.

Of 258 eligible MPs, 243 voted. Did the rest not think that any of the candidates was suited to the role of leader or are a few Labour MPs still moping about in a state of denial?


Labour are asking people to 'Help shape Britain's progressive future.' Maybe they could ask Lord Myners', Labour's former Treasury Minister, his opinion as he now says that:

"There is nothing progressive about a government that consistently spends more than it can raise in taxation and certainly nothing progressive that endows generations to come with the liabilities incurred with respect to the current generation."

Quote of the day

Former Labour Treasury Minister Lord Myners says:

“There is nothing progressive about a government that consistently spends more than it can raise in taxation and certainly nothing progressive that endows generations to come with the liabilities incurred with respect to the current generation.”

Shame that Lord Myners couldn't pluck up the courage to confront Gordon Brown about this seven years ago.


Thanks to Guido Fawkes for the spot.

PMQs 1 April 2009 - Another Brownie?

Per Hansard here is a question and answer:

"Mr. Garnier: The Prime Minister and his noble Friend Lord Myners have now had 24 hours to consider whether they can confirm what Lord Myners said to the Treasury Committee about Sir Fred Goodwin’s pension arrangements. Does the Prime Minister understand that his Ministers are now held in public ridicule and contempt, and is it not time that at least one of them resigned?

The Prime Minister: I see that the hon. and learned Gentleman has risen to the occasion today. Lord Myners has made it very clear that he was told of something that he was led to believe was a contractual obligation but was a discretionary matter. That is the issue that UK Financial Investments Ltd is taking up with the Royal Bank of Scotland; that is the basis on which we are considering legal action; and that is the basis on which UKFI will use its votes in the annual general meeting to promote legal action."

I'll repeat the key part of Gordon Brown's answer "Lord Myners has made it very clear that he was told of something that he was led to believe was a contractual obligation but was a discretionary matter." I have added "in fact" where I presume Gordon Brown would have put it were he not all but incapable


The FT's report from 26 February

quotes Lord Myners as saying "As I have already made clear, it was only last week that the Government became aware that the decision of the previous Board of RBS may have been a discretionary choice."

Meanwhile The Guardian amongst others has reported that Sir Tom McKillop, the former chairman of the Royal Bank of Scotland, has issued a point-by-point rebuttal of his account of Sir Fred Goodwin's £703,000 annual pension including this statement

"Yesterday McKillop insisted that the bank felt "contractually bound" to pay the pension to Goodwin. "There was no question of any discretion to be exercised in relation to Sir Fred's pension and no discretion was exercised in this regard by any RBS director," McKillop said.

He insisted that at no point did Myners or any other government representative try to alter "any of the contractual terms relating to Sir Fred's pensions". He said Myners had been told the pension would be "enormous" and that Bob Scott, who ran the bank's remuneration committee, had told the minister on 12 October that the pot would be £15m-£20m."

I wonder where the truth lies...

It's all in the emphasis

Sky report Sir Tom McKillop's letter to the Treasury Select Committee, thus:

"City Minister Lord Myners did know about both the size and terms of Sir Fred Goodwin's pension, ex-RBS boss Sir Tom McKillop has claimed.

...

In a letter to the Treasury Select Committee, Sir Tom said there was "no elaborate ruse" by him or other members of the RBS board to pay Sir Fred more than he was contractually entitled to.

Sir Tom said evidence given by Lord Myners to the committee needed "clarification" and insisted the minister was told last October that the pension pot would be increased as a result of Sir Fred's early retirement.

Lord Myners told a committee hearing earlier this month that he did not ask Sir Tom the exact size of Sir Fred's pension during a meeting on October 11.

But Sir Tom said the minister was told in a private meeting that day that the pension would be "the sensitive issue and that it would be 'enormous"'.

He said the following day Mr Robert Scott, an independent RBS director, ran through further details of the arrangement.

"As well as referring to the undiscounted effect, and the consequence of early retirement and deemed service for the amount of the pension, Mr Scott also gave Lord Myners... a range of £15m to £20m as being Mr Scott's best estimate of what the pension liability might be," Sir Tom wrote.

The former RBS chairman said he wrote to the committee because "the circumstances relating to Sir Fred's pension have not been accurately represented".

Tory MP Michael Fallon, a member of the committee, said Lord Myners had misled Parliament and should quit.

"He has completely misled the committee and misled Parliament," he said.

"Misleading Parliament is a serious offence; misleading the public is even worse. The honourable thing to do now would be to resign.""

The BBC take a very much different line, first they give the article a rather duller and less attention grabbing headline than Sky's

"Lord Myners 'Knew About Goodwin Pension' "

The BBC opt for

"McKillop: no RBS pension 'ruse' "

and then proceed to report Sir Tom's letter without mentioning Michael Fallon's accusations and indeed without any emphasis on the claim that Paul Myners may have "misled the committee and misled Parliament .. misleading the people"


Anyone would think that the BBC were trying to protect a Labour Minister, surely that cannot be the case. Mind you at the moment there are a lot of Labour Ministers in need of protection - Tony McNulty, Jacqui Smith, Caroline Flint, Paul Myners and I presume Peter Mandelson must have been up to something, so let's add him to the list; just for starters.

Unsurprising news of the weekend re Lord Myners

The Times's report entitled: "Lord Myners hid his money in tax haven" has not shocked me to the core. Do read the whole piece and wonder what else is going on within this Labour government.

Misdirection exposed?

The Financial Times print a letter from Mr John Normanton that says:

"Sir, The underlying position with Sir Fred Goodwin’s pension is simpler than most commentators make out and the background to it is explained in plain English in the 2007 Royal Bank of Scotland Report and Accounts on pages 109 and 114.

On page 114 it is explained that, as at 31 December 2007, Sir Fred had accumulated an entitlement to a pension of £579,000 a year. This had a transfer value, but the notes state that “the transfer values do not represent a sum paid or payable to the individual director. Instead they represent a potential liability of the Group pension scheme.”

The transfer value, which is the “pot” that has been much discussed, is not relevant. The relevant factor is the annual pension payable.

On page 109: “The RBS Fund rules allow all members who retire early at the request of their employer to receive a pension based on accrued service with no discount applied for early retirement.”"

Mr Normanton concludes his letter thus:

"Anyone who had bothered to read the 2007 Report and Accounts would have realised that Sir Fred would be receiving a pension of more than £579,000 a year, payable with immediate effect if he was asked to retire early.

Do we believe that no one in the Treasury read the 2007 Report and Accounts or do we believe that we have been misled by people who were aware of the contents of that report?

John Normanton,
Northwich, Cheshire, UK"

I presume the BBC will be investigating this angle or will they continue to blame the banks and bankers for everything so as to protect the Labour government?

News roundup

What a busy day, so here are some snippets:

1. British Public Sector Debt 'To Hit £180bn' - Sky report that:

"British public sector debt is set to balloon to a colossal £180bn as the recession worsens in the next financial year, experts have warned.

The prediction by a leading independent forecasting body suggests the Government will have to borrow some 12.6% of GDP in 2009/10 to counter a rapid surge in unemployment, a sharp increase in spending and a plunge in tax receipts.

Borrowing nearly double the amount taken from the public funds this financial year would leave the Government a miniscule amount for further stimulus efforts, economists from Ernst and Young's ITEM Club said.

"The public finances are continuing to deteriorate at an alarming rate and as the economy continues to shrink, the outlook is bleak," said the ITEM Club."

Can you say the word "bankrupt"?


2. The BBC report that Labour

"Employment minister Tony McNulty has said he did nothing wrong by claiming second-home expenses on a London house where his parents live.

He received allowances worth thousands of pounds for the property in his Harrow East constituency, which is eight miles from his main home."

Are they all at it?


3. The BBC report

"The UK is planning an updated anti-terror strategy aimed at tackling the immediate threat of terrorism and the longer-term causes of extremism.

The Home Office says the proposal would give the UK the most comprehensive counter-terror strategy in the world. "

A Gordon Brown "junta" with a new "anti-terror strategy", now why does that instill me with a sense of fear rather than reassurance?


4. Technology to the rescue as CTV reports that:

"A Concordia university student is being credited with foiling a troubled British teen's plot to firebomb his high school.

J.P. Neufeld, a music student, had logged onto an online chat forum over breakfast Tuesday when he spotted the threat to burn down Attleborough High School in Norfolk.

He took it seriously and immediately called local police using his Internet phone service after doing a quick Web search to find the phone number.

Within half an hour, Norfolk Constabulary officers had seized a 16-year-old at the doors of the school. The teen was carrying a knife, matches and a canister of fuel. Police later searched the boy's home and confiscated his computer.

The teen, identified only as T.B., was arrested on suspicion of threats to commit criminal damage and possession of an offensive weapon. He's in custody under the U.K.'s Mental Health Act. "

5. The Times reports that:

"WHEN the White House announced last week that President Barack Obama will be returning to the nation’s television screens on Tuesday for a prime-time press conference that will postpone the latest episode of American Idol - the talent show watched by 25m viewers - fans of the programme were quick to respond.

“Stop, please stop, Mr O, we can’t take much more,” one angry viewer wrote on an Idol-related website. “Not again!” complained another. “It’s the same speech he’s been giving for the past year.”

There were dark mutterings that by commandeering evening programming only a few days after he appeared on Jay Leno’s popular late-night chat show, Obama was “just like Fidel Castro [of Cuba] and Hugo Chavez [of Venezuela] - always on camera, always giving speeches and lecturing”.

The barbed response to the prospect of yet another mass-media dose of Obama’s economic prescriptions underlined the dangers the president is facing as he struggles to sell his recovery efforts to a country seething with anger and anxiety over the costs, effectiveness and potential abuse of the government’s trillion-dollar bailout programme. "

Are the masses realising that President Obama may not be the answer to everything?



6. The Times reports the totally surprising news that: "Minister in charge of offshore clampdown ran tax haven firm"

Apparently:

"THE government minister in charge of stamping out corporate tax avoidance has himself set up a business in the tax haven of Bermuda. Lord Myners, already under fire for approving Sir Fred Goodwin’s massive pension from Royal Bank of Scotland (RBS), was part-time chairman of an offshore company which avoided more than £100m a year in taxes.

Details of Myners’s involvement in Aspen Insurance Holdings (AIH) have emerged as Gordon Brown seeks to win the backing of heads of government to prise open tax havens at a meeting of the G20 in London on April 2.

Myners, who earned nearly £200,000 from AIH in one year, is also facing questions over share options he accrued during five years as chairman of the Bermuda-based company. Accounts for AIH show that at the end of 2007 Myners held 318,338 share options. On Friday the shares, which are listed on the New York Stock Exchange, closed at $21.64, which would value that stake at £4.8m.

Myners, financial services secretary to the Treasury and former chairman of the Guardian Media Group, was awarded the majority of the share options at an exercise price of $16.20 a share in August 2003, a year after he helped to start the company.

When he stepped down in May 2007 he was given until August 2008 to buy the shares. If he had bought the shares between January and August last year, when Aspen’s share price fluctuated between $22.59 and $29.90, he would have made a profit of between £1m and £2.1m.

When approached by The Sunday Times on Friday morning, Myners declined to say whether he had exercised the shares. On Saturday afternoon a Treasury spokesman said that Myners had not exercised the share options and owned no stock in Aspen. "

Are they all at it?


7. The Telegraph reports the unsurprising news that: "Labour spends 'more on rail consultants than trains' " Apparently:

"Outside advisers on the new intercity train earned £6.7 million from the Department for Transport between late 2005 and December 2007, the Government said in a parliamentary written reply.

This figure soared to £14.94 million in the period between December 2007 and January this year.

More than £2 million was spent on financial advice alone as the Government decided on which consortium was to provide a replacement to the ageing intercity fleet.

The final decision was delayed and then the Government ran into criticism over handing the £7.5 billion contract to a Japanese-led consortium at a time when unemployment in Britain was rising.

Theresa Villiers, the Tories' transport spokesman, condemned the Government for spending millions of pounds on outside advice during the current economic climate.

"I was staggered to learn that Labour has chosen to double the money spent on consultants for the IEP during such a serious economic recession," she said. "

How do we rid ourselves of this incompetent Labour rabble that are spending our money on fripperies and building a client state to ensure that the UK "enjoys" a perpetual Labour government?

News roundup

It's been a busy day, so here are some news items worthy of your attention:

1. The Mail describes "The two faces of Lord Hypocrisy" - that's Lord Myners.


2. Guido Fawkes recounts a Simon Heffer anecdote about the grasping Harriet Harman, involving umbrellas.


3. NHS Blog Doc has a very interesting article about "high profile solicitor Sarah Harman". Do read it all as there is much that is of interest, I was especially interested by this passage:

"

Sarah Harman, a leading family lawyer, was last night found guilty of "conduct unbefitting a solicitor" for misleading the court and passing confidential court papers to the solicitor-general.

The solicitors' disciplinary tribunal suspended her from practice for 3 months from January 1 2006. She was found guilty of contempt of court in a high court judgment last year, and ordered to pay £25,000 costs personally in the case of the client whose papers she disclosed. She also resigned as a recorder, a part-time judge.

Oh! Dear! How distasteful. But it gets worse, for who was the solicitor-general at the time? None other than Harriet Harman, Sarah Harman’s sister."

4. Old Holborn wants to be free and has written to Gordon Brown.


5. Devils Kitchen has his doubts about gold.

Fred Goodwin, Lord Myners and large pensions

Guido Fawkes has the story and will be worth watching today as this one evolves.

If this story is true can Lord Myners do anything other than resign? Although NewLabour Britain means Ministers never having to resign or say sorry.

Shifting the blame

The BBC eagerly report Lord Myners words in his Times interview that:

"Let us be quite clear: there has been mismanagement of our banks."

The BBC also paraphrase in their first sentence to give us:

"Banks and their "grossly over-rewarded" executives are partly to blame for causing the economic recession, a government minister has said."

Can Lord Myners or the BBC tell us who else "are partly to blame"? Obviously the Americans must top the list but do they think any blame devolves upon their Prime Minister? Gordon Brown having replaced the centralised control of City regulation with a tripartite system that let too much fall between the three parties. Gordon Brown who changed the inflation measure so as to keep the boom going so as to keep the middle classes feeling rich enough to ignore the changes in the Country that they otherwise would have railed against. Gordon Brown having stoked the fires of this bubble without any regard as to the risks. Does Gordon Brown share any of the blame? Well Minister, well BBC?

Guido Fawkes has some of the background that I am sure you know about Lord Paul Myners.


This attack on the banks follows Gordon Brown's earlier in the week and is about establishing the "narrative" that "greedy bankers" were the people responsible for the UK's problem , not the brave, resourceful, honest Prime Minister. It is rubbish of course but that won't stop the Labour propaganda machine rolling this out and there are enough people in this Country who will fall for it.

When is an "evil short-seller" not an "evil short-seller"

Apparently, when he is a friend of Gordon Brown. According to the BBC:

"Paul Myners, the chairman of the Guardian Media Group and former chairman of Marks & Spencer, will advise the government as business ambassadors, the PM says."

Does Paul Myners do anything else that the BBC are keeping from us? Well he

"is a director of the hedge fund manager GLG, which with $25 billion under management is one of europe's biggest hedge fund managers. It was until recently 10% owned by Lehmans. Paul Myners gave money to Gordon Brown's leadership campaign and he also gave money to Gordon Brown's think-tank the Smith Institute. Gordon rewarded him with appointments to the Treasury's pension review."

Also

"GLG, had the biggest short in the market in Bradford and Bingley."

Has Paul Myners any other links to Gordon Brown? Well, he was

"deputy chairman of the Smith Institute, as well as Gordon's personal financial backer during the leadership campaign."

Gordon Brown, like Tony Blair before him, seems to believe that whatever he does he is right and therefore no excuses ever need to be made. Maybe one day all of Gordon Brown's mistakes, lies and cover-ups will return to haunt him.


The last three quotations are all from Guido Fawkes' site, still one of the best sources of political news on the web.