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Business as usual? - for the Strathspey & Badenoch Herald
OVER the last 18 months Britain has been hit by two enormous crises.
First, the economic crisis, caused by greedy banks, complacent Government and incompetent regulation has given us the deepest recession for 60 years. Second, the exposure of our rotten political system through the expenses crisis.
In each case, there has been enormous media exposure, huge and totally justified public anger, and a strong desire for real change to be forced through.
But as soon as the media spotlight has been turned off, what has actually changed? Nothing. The answer to these crises from the financial and political establishment is: back to business as usual.
This is unacceptable. Not only is it unacceptable, it is also a betrayal of the people of this country whose demand for change in both spheres is being ignored. How has this been allowed to happen?
Take the City of London and the banks first. Over the last few weeks the business pages of national newspapers have been full of stories about bankers hoping that a new glut of lucrative business is just around the corner.
Hopes are high that huge bonuses are just around the corner. Even the leaders of the taxpayer-owned banks are paying themselves new, fatter salaries.
We know that there is a culture of greedy short-termism in 'the City' – that was a major cause of the crisis in the first place. But what happened to the promises from the government that it would not be allowed to happen again?
Nine months after the collapse of Lehman Brothers – the US bank that triggered the most severe part of the credit crunch – the Government gave us their answer.
A white paper – a provisional list of ideas which will not become law for many months, if at all. No mention of bonuses, or of substantial new constraints.
We don't need new rules in a year's time, we need them now. City bonuses are happening now; short term bad financial decisions are being made now. Nationalised banks are thumbing their noses at their owners now.
It is certainly true that this is a complex area, and much of it requires international agreement. But a Government less consumed by trying to plot its own political survival, less in the pocket of the City friends they made in the good times, would have acted far more swiftly and decisively.
Swift and decisive action has been sorely lacking in the political arena too. The expenses scandal lifted the lid for many people on the arrogance and secrecy that has long been at the heart of our rotten political system.
New rules on expenses have started to be agreed – along the lines that I and others have long been pushing for. But unless we address the problems with the whole system that not only allowed but encouraged a crooked expenses regime, then no good will have come of this.
But what has happened? While the issue was in the headlines, David Cameron and Gordon Brown both made positive sounding noises about reforming our politics.
But as soon the headline writers moved on, both Labour and Conservatives have eagerly returned to business as usual. The old system serves the interests of the two old parties and the have no interest in change.
In theory, there is a lot of common ground among the political parties. Giving people the right to sack MPs – but Labour Lords blocked it three weeks ago when Lib Dem Lord Tyler but a bill forward to do just that.
Reform of party funding to get big money out of politics – but both Labour and Tories blocked reforms to prevent corrupting big donations. Even a move to stop the Prime Minister having the right to call elections has been blocked.
The biggest change that is needed is to the way we elect MPs. It is no wonder that Labour and Conservative parties feel comfortable with a system that gives most of their MPs safe seats for life, and gives them turnabout running the country every few years without ever needing the support of a majority of the voters.
If we want to keep sitting MPs on their toes and have a Parliament that reflects the views of the nation, a more proportional voting system is the only answer.
The demand for change is powerful, the need urgent – only politicians who really don't get it think business as usual is acceptable. The general election when it comes will be the only chance for the people to show that it is not.
Posted on: 22/07/2009
