Banksters are tax-dodgers

The TUC is calling on the govt to make the banks it owns come clean on their tax dodging activities.

(Come clean! What chance the new Met Commissioner floods the City with cops to nab the corporate crooks who have plunged us into recession?)

Richard Murphy, tax expert and blogger, carried out the research…

Lloyds TSB, RBS, HSBC and Barclays have between them well over a thousand subsidiary companies (1,207) incorporated in tax havens. The most popular location is the notorious tax haven of the Cayman Islands with 262 companies, Jersey is second, with 170 companies. HBOS is not included as it has not published a list of its subsidiary companies for 2006, 2007 or 2008 in either its annual report or its Companies House return, in apparent breach of company law.

Not every subsidiary located in a tax haven or financial secrecy jurisdiction will necessarily be used for tax avoidance, says the TUC analysis. Some may be simply providing banking services to the local population and business community of countries such as Ireland – or have particular commercial links to countries such as HSBC’s ties to Hong Kong.

TUC General Secretary Brendan Barber said: ‘The taxpayer is now propping up Britain’s banks, either directly or indirectly. Even those who have not had direct bail-outs now trade with an implicit guarantee from the Government. The irresponsible behaviour of banks here and abroad is the biggest cause of the recession.

‘Yet even those who come cap in hand to the taxpayer and Bank of England, continue to do business in tax havens. This raises questions about whether part of the objective is avoiding paying a fair rate of tax to the UK – a tax gap that has to be made up by the rest of us.

‘We cannot know the extent of these activities. Indeed one of the main attractions of tax havens is their secrecy. There is no suggestion that anyone has broken any tax laws, but now banks have public stakes or trade with the knowledge that the taxpayer stands ready to bail them out, the taxpayer has a right to know the full extent of bank activities and liabilities across the world.

‘We should know where banks undertake their activities, where they record their profits and where they pay their taxes. Country-by-country reporting of their activities is essential if we, the UK taxpayers, are to know the risk we are under-writing.

‘Voters are increasingly angry at the banks, who they rightly think must take a large share of the blame for the jobs and homes that will be lost in this recession. The Government should set up a tough public inquiry into why our financial system came so close to collapse – and it should investigate the full extent of their tax avoidance.’

Recession no excuse for construction safety cuts

Along with soft-touch “regulation” in the financial sector, New Labour has championed self-policing in other sectors of the economy – most lethally, in construction.

With the government accelerating public works projects and becoming a big fish as private construction shrinks, there’s an opportunity to regulate the industry.

Alan Ritchie, the general secretary of UCATT, writes in Tribune:

End confusion and chaos in construction

LAST April, Sonny Holland, a 20-year-old “apprentice” scaffolder, fell to his death while at work. His death was a chilling example of everything wrong with the construction industry. Despite being described as an apprentice, Sonny was not being formally trained. He was officially working as self-employed – a ridiculous situation for a so-called apprentice. After he was killed, the firm he worked for went into liquidation in an attempt to avoid its liabilities and then established a “new” company.

Perhaps the most shocking aspect of Sonny’s death is not that it was unusual, but all too common. In the past two years there have been just over 150 construction deaths – an average of six a month. It says much about the media’s view of the expendable nature of construction workers that the vast majority of these deaths barely received a mention. If there is any reduction in the next annual fatality figures, it will be due to a combination of luck and less available work due to the economic downturn.

My union, UCATT, fears the recession could actually make construction sites more dangerous in the medium term. Much of the industry has a macho culture that only pays lip service to health and safety. When times are tight, safety is first to be cut. With thousands of construction workers losing their jobs, those still employed are even less likely to refuse to perform a dangerous task, for fear of being given their cards and told there are plenty of others who will work without complaint.

Despite these problems, there is a very real opportunity for major improvements in health and safety in general and the construction industry in particular. Two major initiatives were announced shortly before Christmas.

They are the Health and Safety Executive’s launch of a consultation on a new strategy and the Government’s announcement of an inquiry into the high number of construction deaths, chaired by Rita Donaghy, the former head of the Advisory, Conciliation and Arbitration Service.

In recent years , the HSE has suffered a bad press. The recurring refrain from the right-wing media – of health and safety legislation “gone mad” – has distorted the real story about what is wrong with the organisation responsible for keeping us safe at work.

Since 2002, the HSE has suffered year-on-year real term cuts in resources. This has led to a reduction in the number of frontline inspectors and fewer inspections. In the construction industry, there has been a 42 per cent decline in the issuing of enforcement notices and a 30 per cent reduction in prohibition notices.

The reduction in safety notices is not because sites are safer. When the HSE scrapes together the resources for a targeted blitz of construction sites, at least 75 per cent of those visited are found to be breaking health and safety laws. Many are so unsafe they are shut down immediately. Yet so slim are the HSE’s resources that these blitzes, which cover a tiny fraction of the industry, are becoming more infrequent and visiting a smaller number of sites.

Even more disturbing are the low level of prosecutions following a construction worker’s death. Convictions rates have fallen to just 30 per cent. This is put into perspective by the HSE’s admission that management failure is a factor in more than 70 per cent of fatalities.

Construction is the most dangerous industry in Britain, but a similar pattern of a reduction in safety enforcement can be seen in other sectors, particularly agriculture.

The HSE is under the misapprehension that safety will not improve through an increase in inspectors, inspections and prosecutions.

Instead it is the responsibility of industries to regulate themselves. This dangerous nonsense would be funny if it was not so serious.

In a highly casualised industry such as construction, the only way to keep the many rogue employers in line is by the constant threat of prosecution. Sending them glossy leaflets asking them to be more safety aware is a waste of time and money.

There has been a growing awareness of the failure of the self-regulation throughout the labour movement. Last September, the TUC Congress unanimously backed a UCATT motion opposing self-regulation at the HSE and mandating all TUC-nominated representatives to campaign against it.

That the HSE is now consulting on a new strategy gives the labour movement an opportunity to have a say. This is vital, as the HSE document produced to launch the consultation is so bland and non-specific. It is essential that as many people as possible attend the road shows planned for this month and contact the HSE calling for a greater number of inspectors, more inspections and greater enforcement. Further details of how to get involved can be found at http://www.hse.gov.uk/strategy

If we do not give clear direction to the HSE, then business – obsessed by so-called red tape and “flexibility” – will use try to dilute safety at work still further.

The Government’s inquiry into construction was created because of UCATT’s lobbying, to which ministers finally conceded as part of last year’s Warwick agreement between Labour and the unions.

The inquiry must get to grips with the dark underbelly of the construction industry. If it has the courage, it will take some far-reaching decisions to change the way the industry operates. It must examine the highly casualised nature of construction. People are able to walk onto a site and start work immediately with no checks on whether they know what they are doing and whether they are a danger to themselves or others. Such laxness can have tragic consequences. In January 2007, Zbigniew Swirzynski was killed on his first day on a site in central Liverpool when the jib of a tower crane fell off. A lack of paperwork meant it was several weeks before his family in Poland was informed.

Casualisation in construction is made worse by bogus self-employment. Rather than employ workers directly, companies opt to use bogus self-employment via the Government’s Construction Industry Scheme, a unique stand-alone tax scheme. More than 400,000 workers are officially classified as self-employed while having all the characteristics of an employee.

They are placed at greater danger because they lack employment rights and can be fired at a moment’s notice. Sites using bogus self-employment are almost exclusively unorganised and do not have safety representatives. A well-organised site with independent safety representatives can reduce accidents by 30 per cent.

Is there another industry where the major players do not employ their own workforce? It is the norm in construction. The big household names barely employ a single construction worker.

Work is performed by sub-contractors, who then further sub-contract the work. On a large site, it is perfectly possible to have a dozen companies all working at the same time. Chaos and confusion reign. Even if intentions are good, safety messages are lost and unnecessary accidents occur.

Fragmentation in the industry has accelerated in recent years due to the rise of employment agencies and gangmasters. Workers of widely varying abilities are placed on sites without competency checks being made. UCATT has campaigned for the Gangmasters Licensing Authority to be extended to the construction industry in order to improve health and safety. Sadly, the Department for Business, Enterprise and Regulatory Reform rejected our proposals.

The inquiry should examine the arguments in favour of introducing directors’ duties. This would require companies to nominate a director responsible for health and safety. If someone died as a result of flagrant breaches of health and safety, there would be the possibility of a director going to jail. The first time a director was filmed being led from their office in handcuffs, the vast majority of the industry would swiftly get their act in order.

This year could see the beginning of a huge improvement in protection at work and a subsequent reduction in deaths. We need those writing the new HSE strategy and conducting the construction safety inquiry to have the courage to challenge vested interests, ask difficult questions and reach brave conclusions.

We cannot afford another false dawn or a report that is a damp squib. Workers’ safety is simply too important.

Homelessness increasing as banks theaten repossession – even if you’re paying the mortgage!

The News Line reports that the recession is driving up homelessness:

Crisis, the national charity for single homeless people, yesterday warned of a potential surge in homelessness in 2009 as it opened the doors of Crisis Christmas to hundreds of homeless people.

Following official figures showing record unemployment levels, a YouGov survey on behalf of Crisis has revealed that 41% of adults in Britain know somebody who has lost their job due to the economic downturn.

Unemployment is hitting home with almost one in ten (9%) of people with a mortgage or rent repayment already struggling to pay the rent or mortgage.

In addition, a third of those surveyed (32.4%) believed they would lose their home within three months of losing their main form of income – leading to fears of a surge in homelessness in the New Year.

The survey also reveals that the poorest are the most vulnerable to the impact of the economic downturn, with more than three times as many people with lower incomes struggling to pay the rent and mortgage compared to more affluent groups in Britain.

Poorer people are also more concerned about losing their jobs and homes.

The findings were announced on the day that Crisis is opening nine temporary centres across London to hundreds of people who are already homeless and vulnerably housed.

The centres provide vital companionship, hot meals and shelter as well as services including housing, job advice, health checks, training and further education opportunities.

Leslie Morphy, Chief Executive of Crisis, said: ‘These figures are a stark warning for 2009.

‘Today we open the doors of Crisis Christmas to hundreds of homeless people in London – some of the most vulnerable and deprived people in our society.

‘The economic downturn is hitting the poorest the hardest.

‘Many are struggling to keep their homes.

‘The situation is only made worse by pressure on jobs, with unemployment levels set to reach two million by the end of the year.

‘Our fear is that as the recession bites in the New Year we are going to see more people in the same situation as those relying on our Christmas centres today, whilst those already at the bottom of the pile are going to be further away from the help and support they need to put their lives back together.’

Even if you are in employment and can afford to pay the mortgage, you could still be repossessed, as The Times reports:

Homeowners who have not missed a single mortgage payment could still be threatened with repossession by lenders who use an emergency clause to demand that the entire loan is repaid at short notice.

Peter and Marian Addyman, who live in St Leonards, East Sussex, received a letter this month from NatWest – part of the Royal Bank of Scotland, which is majority-owned by the Government – insisting that they repay a £226,000 mortgage within 30 days or face repossession.

The couple, who have never failed to make a mortgage repayment, bought their new-build five-bedroom property for £250,000 in 2004. When their initial mortgage deal expired at the beginning of the year, they took out an interest-only tracker loan at 0.04 per cent above the Bank of England base rate.

Their local MP, Michael Foster, who has twice written to the bank to request an explanation, said of the mortgage: “The bank are obviously not making any money out of it but they agreed it.”

The Council of Mortgage Lenders said that the clause allowing lenders to demand that a mortgage be repaid at short notice existed in the small print of almost every mortgage in Britain, although it was meant to cover only exceptional circumstances. This month a judge supported the right of lenders to repossess properties at will under a law dating back to 1925.

Since the government owns a majority of RBS, ministers should get involved to ensure this doesn’t set a precedent for the banks. It must be tempting for banks to recapitalise via repossession, thus avoiding total nationalisation and concerted regulation.

Back to the News Line for what to do about the homelessness crisis:

In the next year a million people will lose their jobs, and hundreds of thousands of them will be unable to make their mortgage or rent payments. They will end up on the streets.

What is required is an emergency plan to house the homeless.

Under the Labour government, Labour Councils are actually demolishing council estates and selling the land to developers for speculative building aimed at the very rich.

It has reached the stage where almost the entire housing stock has been sold off, and where council tenants are being threatened with eviction by councils in Camberwell and other places, because they will not leave their council homes.

The sales of council estates, or their demolition by councils must be halted at once.

Likewise, all empty properties must be requisitioned and taken over to house the homeless.

As well there must be a programme of public works to build a million new council homes, both to house the homeless and to provide hundreds of thousands of young workers with jobs and the opportunity to learn trades and master skills at trade union rates of pay.

This is the way forward to begin to solve the housing crisis.

Corrupt solicitors and strike-breakers united to scam sick miners

The Morning Star reports that

SOLICITORS James Beresford and Douglas Smith were found guilty of misconduct on Thursday by the solicitors’ disciplinary tribunal in London over compensation payouts for sick miners.

The pair made millions from personal injury claims for miners under the government’s coal health compensation scheme.

The tribunal found eight out of 11 allegations against them proven. Chairman David Leverton said that Mr Beresford’s “attitude allowed himself and Mr Smith to put commercial goals before his clients’ best interests.”

The pair had also been accused of not giving adequate advice and entering into contingency fee deals against their clients’ best interests.

Which is putting it mildly!

The Times goes into greater detail:

Mr Beresford, 58, has banked more than £30 million from his firm’s work on the claims and was named last year as Britain’s highest-earning solicitor. Between 2004 and 2006, he grew richer at a rate of £37,000 per day.

The money bought him a £1.8 million private jet, Aston Martins, a Ferrari and extensive improvements to his home near Wetherby, West Yorkshire.

He and Mr Smith, 51, agreed to a “dubious” secret deal in 2002 under which they paid hundreds of thousands of pounds to a company owned by an employee of the Union of Democratic Mineworkers (UDM). The two men were found guilty of nine charges of misconduct involving numerous breaches of the Solicitors’ Practice Rules. The Solicitors Disciplinary Tribunal ruled that they entered into a sham arrangement with the UDM, failed to act in the best interests of their clients, failed to give adequate advice and improperly released confidential information.

In thousands of cases they sliced money from damages to claimants. Some deductions were kept as a success fee; others went to the UDM.

Beresfords’ financial relationship with the union was revealed by The Times in 2005 and is linked to a criminal inquiry that the Serious Fraud Office has been pursuing for the past three years.

The role of strike-breaking scab union the UDM is very interesting. Better known of late for its leadership’s fleecing of members, with the two most senior leaders earning six-figure sums, it was formed during the Great Miners Strike and its leaders appeared at the Tory party conference to the applause of those set on destroying the UK’s collieries.

Bloggers come under legal attack from litigious Tory

Using the law! (Apologies for the title of this post.)

Johanna Kaschke was a member of the Labour party and in the running to be the party’s candidate to run against George Galloway at the next election.

But, she jumped ship to join Respect, Galloway’s party.

Hence much comment by Labour bloggers – and then, legal action by Ms Kaschke.

Johanna Kaschke is now a true-blue Tory, convinced that the Brown administration is ushering a new Communist era for Britain. I’m not kidding.

Blogger Alex Hilton is now facing legal action by Ms Kaschke, he writes:

Comrades,As you may know, I sold Labourhome in July, though I still run it and with no interference from the new owner.

However, last year, someone started a defamation action against me over a Labourhome article and the expenses are bourne by me, they were not transferred to Progressive Media, the new owner.

So far this legal case has cost me £4,022 and it is still on-going. This is my plea to Labourhome readers for contributions towards my legal costs.

 

I can’t tell you too much about the case because I don’t want to annoy the court. But this is what I am comfortable telling you. 

  1. An active Labourhome user wrote a piece about the past of a Labour member who had defected to Respect. That person has since joined the Conservative Party.
  2. The Labourhome user is also being sued by this particular Tory, who is a litigant in person and has no lawyer.
  3. The offended person contact me about the piece, which I immediately deleted. I offered the front and centre spot on Labourhome to the offended person for their right of reply or to write something else of their own choice. My offer was declined.
  4. Because of my actions, my lawyer says I have an absolute defence under Section One of the Defamation Act. I also have other defence strategies available, one of which is the possibility that the article was not defamatory, thought this is still being explored.
  5. Because the complainant is a litigant in person, this case has been more complicated than normal and I have actually received a total of four writs before it got tidied up into one action. This is partly why this defence is so expensive.
  6. Despite the likelihood that I will probably win this case, I do not have a strong prospect of recouping my costs, at least in a reasonable timescale. I don’t have the five-figure sum the complainant wants as a settlement. 

I would be very very grateful if readers would consider donating any sum towards my legal costs. I built Labourhome two and a half years ago as an open forum for Labour supporters because I believed it was needed. I’m in court because of the freedom of this forum and I can tell you the whole situation is pretty depressing.Any contribution will be gratefully received. If you don’t have any money but would like to help, please email a link to this plea for help to others who might be able to help.

Thank you so much,

Alex Hilton
07985 384 859
alexhilton@gmail.com

Though I don’t agree with Alex all that much (certainly not when he’s calling Jon Cruddas “the Labour politician most reminiscent of Oswald Mosley” – obviously he’s mistaken him with Phil Woolas!) but he needs to be defended from this vexatious legal action. Another Labour blogger, David Osler, is also facing legal action from Ms Kaschke.

I’m saying nothing – and that’s a bad thing.