New Labour to announce more welfare money for the corporate scroungers

The Brown government is being hit over the head by the Tories and the capitalist press.

In order to win back support from where it matters most – the capitalist class – they’re going to do some more “Robin Hood in Reverse”.

Yes, that’s right, propping up the profits of the few at the expense of the many…

Private sector expands UK role

By Nicholas Timmins, Public Policy Editor

Published: December 4 2007 22:05 | Last updated: December 4 2007 22:05

The private sector supply of public services now makes a bigger contribution to the economy than pharmaceuticals, the automotive industry or aerospace, a study to be published by Oxford Economics on Wednesday will show.

Private and voluntary organisations now supply at least £44bn worth of public services ranging from prison places to NHS treatment, government buildings, IT projects, and social care and education. They account for 18 per cent, or almost one-fifth of all public service delivery, according to the study commissioned by the CBI, the employers’ organisation.

The Oxford Economics study shows the private sector employs some 700,000 people and generates £25bn towards national income, making it a larger contributor than the food and drink industry and almost as big as post and telecoms.

Its publication will coincide with the announcement by John Hutton, the secretary of state for business, enterprise and regulatory reform, of a yet more detailed study of the private sector’s contribution, and whether barriers need to be removed to allow it to do more.

With the CBI, among others, having been sceptical over Gordon Brown’s commitment to Tony Blair’s espousal of competition, choice and use of the private sector in public service reform, Mr Hutton will make clear that the independent sector remains “an indelible part of public service reform”.

He will highlight the prime minister’s affirmation at last week’s CBI conference to the use of choice, competition and the private sector in public services, when Mr Brown said that where it provides value for money, the private sector’s role will grow “at an increasing pace”.

The study will assess the scale and development of the market, any barriers to exit and entry in key public service sectors, the contribution it makes to the economy, and export potential.

Labour’s law-breakers admit guilt but claim innocence!


That’s the only word you can use in response to Wendy Alexander’s admission that she had broken a law, but wanted to clear her name, for which she got the “unanimous” backing of Labour MSPs.

So, get this – she in effect said:

“I am guilty, but I am going to prove my innocence.”

And the Scottish PLP have backed her!

If you or I tried that excuse – “Honest, guv, I didn’t know it was illegal!” – the policeofficer would smile before putting on the handcuffs…

And as for Peter Hain. Well, only last week he was banging on about getting disabled people back to work… at the same time as he was announcing that hundreds of disabled workers were to be made redundant!

He’s now drawing up a list – not for Santa – but of donors that gave money to his failed Deputy Leadership campaign.

Hazell Blears is saying there’s no need to investigate the dodgy planning application for a business park which was orignally subject to objections by the Highways Agency, but at the last minute these objections were dropped. At the time, Douglas Alexander, wee Wendy’s sister, and the man responsible for this years voting chaos in Scotland, was running the department!

Now, this latest turn of events – the illegal donations, the allegations of cash for planning permission, both Brown and the capitalist press turning on the trade union movement…

What does this say about the Labour party? When will those who talk of reclaiming it see the light?

Working people can see that Labour is a corrupt instrument of big business – if it looks like a shit and smells like a shit, for god’s sake, flush the fucking toilet!

I can’t write about this madness any longer – here’s a bit of what the World Socialist Web Site had to say on the scandal and on the Tories’ involvement in uncovering it:

Unlike with the cash-for-honours inquiry, however, there appears little hope of maintaining a united front of silence either within the Labour Party or from Abrahams.

Harman has let it be known that she was steered in Janet Kidd’s direction by Brown’s campaign coordinator, Chris Leslie—again bringing the investigation to the prime minister’s door. Leslie has insisted he was unaware that Kidd was a front for donations from Abrahams. In addition, Hilary Benn turned down an offer of £5,000 from Kidd because he was tipped off by Baroness Jay, the former leader of the Lords and a close ally of Blair that Abrahams was the real donor. Benn then accepted a direct donation from Abrahams.

Worse still for all attempts to deny knowledge, Abrahams has insisted in a public statement that several top Labourites knew of the financial concealment—a source close to him says the figure is at least 10.

Abrahams says he was placed next to Mendelsohn at the annual dinner in London on April 25 for the Board of Deputies of British Jews, where Brown was the guest of honour. Abrahams says he told Mendelsohn “that I regularly donated to the party and I described how it was done through intermediaries for the purposes of anonymity.” Mendlesohn is said to have replied, “That sounds like a good idea”—a claim he denies.

Mendelsohn’s account of his own behaviour is already damning. Though he supposedly discovered the third-party payments after taking office in September, he only reportedly discussed them with Watt and not Brown and did not inform the police or the Electoral Commission.

“Party officials knew of my wish to retain my privacy and were only too happy to accept my money via intermediaries,” Abrahams states.

In addition to Mendelsohn, the Sunday Times claims that Abrahams has compiled a list of names “who were aware of his ‘illegal’ arrangement to fund [Labour] secretly” that “will be passed to the Metropolitan police.”

Three former Labour Party general secretaries are alleged to have known of the secret arrangements—David Triesman, Matt Carter and Peter Watt. Triesman, now Brown’s minister for intellectual property, signed off 3 donations emanating from Abrahams totalling £75,000, Carter 5 donations totaling £77,000, and Watt 11 donations totalling £511,000. Triesman and Carter have denied the allegations.

The latest revelations prompted Conservative Party leader David Cameron to insist that it “beggars belief” that Brown did not know of the donations.

Who is David Abrahams?Initial claims portraying Abrahams as a publicity-shy and relatively unknown figure—Abraham’s own explanation for his actions—have been widely discredited.Stephen Pollard, a former head of the Fabian Society who now heads a pro-free market European think-tank, has written that Abrahams regularly attended Fabian Society meetings up until Pollard left office in 1995, where he “mixed freely with Labour back-bench MPs, frontbenchers, NEC members and Shadow Cabinet members. And in the North East, where he was based, he would almost certainly have mixed regularly with North East MPs such as the former Cabinet ministers Alan Milburn, Stephen Byers and Peter Mandelson, the former Chief Whip Hilary Armstrong, and—as the then MP for Sedgefield—Tony Blair.”

Abrahams has indeed met Blair, Lord Levy and Baroness Jay a number of times since 2003 at fundraising events and claims to have been to 10 Downing Street on “several occasions.” He sat on the front row when Blair gave his resignation speech in Sedgefield on May 10, 2007. He was photographed with Peter Watt at a Jewish museum dinner and was a member of Labour Friends of Israel, elected to its national executive in 1991. Brown’s confidante Mendelsohn became the organisation’s director in 2002, and is reported to have bitterly clashed with Abrahams—leading to the latter’s expulsion.

While Brown says that he “probably met him on occasion,” Abrahams, when asked by the Daily Telegraph how familiar he was with the prime minister, replied, “You don’t remember how many times you’ve eaten porridge for breakfast.”

Abrahams’s relations with Labour in the northeast go back even further. His father, Bennie, was a Labour councillor and Lord Mayor of Newcastle in 1981-1982. David joined the Labour Party at age 15 and later became a councillor. In 1991, he attempted to stand as a party candidate in Richmond, but was deselected after a woman and a young boy he claimed were his wife and son were revealed to have been paid to pose as such.

Greg Stone, a Liberal Democrat member of Newcastle City Council, told the BBC he had failed to dislodge Labour’s Phil Wilson in a contest he maintains was largely funded by Abrahams. He identified donations totalling £62,000 made to the Labour Party by two of Abrahams’s intermediaries on the day that a by-election was announced.

Another possibly damaging feature of Abrahams’s connection with the party is his business dealings. An investigation has been launched into why Durham Green Developments was granted planning permission for a multimillion, 540-acre business park on green-belt land by Durham City Council, after his application was initially refused. Abrahams runs the company under a registered business name, David Martin. The Conservatives have raised questions in parliament noting that the application was approved (when the Department of Transport’s Highways Agency lifted its objections) after nearly £160,000 had been donated to Labour in the names of Ray Ruddick and Janet Kidd, who are listed as the only two directors of Durham Green Developments.

Abrahams himself is not a director of the company, but it is registered at his home address in Gosforth, Newcastle.

Durham City Council told the BBC that “it was obvious from an early stage that Mr. Abrahams was the main figure behind the development, even though he was using the name David Martin,” which is Abrahams’s registered business name. However, The BBC points out that, far from being obvious, “We could only find a single mention of that name [Martin] in the files on the proposed development at the council’s planning offices in Durham” and no mention of David Abrahams. “In the letter, to Northumbrian Water, ‘David Martin’ offers to pay for a study into the likely impact of the development on a local sewerage works, amid concern it would lead to a big increase in foul odours.”

The Telegraph reported, “The Secretary of State to whom the Highways Agency answered was Douglas Alexander, who went on to become Gordon Brown’s election co-ordinator. As a result, the Conservative MP Chris Grayling has demanded that the Government discloses whether ministers have discussed planning applications with Mr. Abrahams, Mr. Ruddick or Mrs. Kidd.”

Labour’s Scottish leader, Wendy Alexander, Douglas Alexander’s sister, has been forced to return an illegal donation from someone not on the electoral roll. Paul Green, a Jersey-based businessman. Charlie Gordon, who raised the money for Alexander’s leadership campaign, stood down as Labour’s shadow transport minister. Green alleges that he had been specifically asked for £950, just short of the £1,000 limit over which all donations must be reported.

Labour—A party of big businessThe emergence of the present scandal comes immediately as a result of manoeuvres by the Conservatives over party funding. Talks on party finding collapsed last month after the Tories rejected a cap on donations from individuals of £50,000 and on spending covering the whole of a parliament, including local level spending, which would have curtailed heavy spending by Tory donors in marginal seats. They countered by demanding that the £50,000 cap be extended to cover trade unions funding Labour.According to the Observer, the Tories responded to the collapse of the talks by launching a campaign to “expose Labour’s dodgy donors and their donations”—Operation Under the Water. A Conservative central office researcher, Richard Hardyment, filed a request under the freedom of information laws to the Highways Agency asking it to “provide him with details of all its correspondence with Durham Green Developments about its recent planning application for a development near junction 61 of the A1 [and] for correspondence with persons acting on behalf of Durham Green Developments including but not exclusively Raymond Ruddick and Janet Kidd.”

This was a month before the pro-Tory Mail on Sunday revealed their names.

The Tories’ aim in exposing Labour’s “dodgy donors” is to force it to cut the two thirds of its funds that still come from the trade unions—£10 million. In this, it appears to have been successful. Brown has been forced by the present scandal to accept a £50,000 cap providing this covers only additional donations and not the annual Labour Party affiliation fee of a political levy payer in the trade unions.

The readiness of the trade unions to continue funding Labour in no way alters the fact that the party functions as the representative of big business, which is what provides the essential impulse for its efforts to secure finance from rich donors—by hook or by crook.