Reply to: Business leaders back spending cuts

[Doggy Styles]

There's no easy answers for the coallition.

I always say that if you're in a hole with turds raining down on you, you get out of the hole as quick as you can.

[Alf W]

Full article

Extract

We've been staring at the wrong list. In an effort to guess what will hit us tomorrow, we've been trying to understand the first phase of the British government's assault on the public sector: its bonfire of the quangos. Almost all the public bodies charged with protecting the environment, animal welfare and consumers have been either hobbled or killed. But that's only half the story. Look again, and this time make a list of the quangos which survived.

If the government's aim had been to destroy useless or damaging public bodies, it would have started with the Commonwealth Development Corporation. It was set up to relieve poverty in developing countries, but when New Labour tried, and failed, to privatise it, the CDC completely changed its mission. Now it pours money into lucrative corporate ventures, while massively enriching its own directors. Private Eye discovered that in 2007 this quango paid its chief executive just over a million pounds. The magazine has also shown how the CDC has become entangled in a series of corruption cases. Uncut. Unreformed.

The same goes for the Export Credit Guarantee Department. The ECGD effectively subsidises private corporations, by underwriting the investments they make abroad. At one point, 42% of its budget was spent on propping up BAE's weapons sales. It also pours money into drilling for oil in fragile environments. A recent court case showed how it has underwritten contracts obtained with the help of bribery. Uncut. Unreformed.

The Sea Fish Industry Authority exists "to help improve profitability for the seafood industry". Although it is a public body, all but one of its 11 directors work for either the fishing industry or food companies. They seek to "promote the consumption of seafood", to "champion the industry in public debates" and to "influence the regulatory process" in the industry's favour. Uncut. Unreformed.

Can you see the pattern yet? Public bodies whose purpose is to hold corporations to account are being swept away. Public bodies whose purpose is to help boost corporate profits, regardless of the consequences for people and the environment, have sailed through unharmed. What the two lists suggest is that the economic crisis is the disaster the Conservatives have been praying for. The government's programme of cuts looks like a classic example of disaster capitalism: using a crisis to re-shape the economy in the interests of business.

[SupremeSpod]

The point is that it's not their job to do it - nobody would make FD go to jail or lose job if they refuse to use dodgy tax schemes that involve outside countries.

If there were a way to reduce my companies tax liabilities and my FD didn't know about it and have a damn good reason as to why we weren't using it then I'd give them the order of the boot.

Stick to hacking.

[original PM]

well of course the business leaders are going to want to be seen kissing the arses of the current government - just as they were seen kissing the arses of the last government.

It is nothing to do with policy it is all to do with personal gain.

And of course the couldn't give a fig that the cost savings will cause people to be short of cash they are alright so they do not care.

I do not care one way or the other - the rich will get richer, the poor will get poorer and those in the middle will normally manage to get by.

But lets not think any of this is to do with people actually agreeing with what other people are saying.

[HairyArsedBloke]

It is only the Private Sector which can create genuine new Jobs which in turn enriches the Nation - the Public Sector is bloated due to NLs social engineering - now - take your medicene !

Amen, brother.

[AlfredJPruffock]

Of course they back spending cuts. It saves the government from having to come after them for the wholesale tax avoidance schemes most of them are pulling. I'm sure I read a figure of upto £12bn a year avoided by large UK based corporations through the use of blatant corporation tax avoidance schemes.

This Tory government are corrupt scum.

It is only the Private Sector which can create genuine new Jobs which in turn enriches the Nation - the Public Sector is bloated due to NLs social engineering - now - take your medicene !

[AtW]

Nothing Dodgy about it. If the mechanism is there, exploit it.

The point is that it's not their job to do it - nobody would make FD go to jail or lose job if they refuse to use dodgy tax schemes that involve outside countries.

[Doggy Styles]

It has always been a financial director's job to minimise tax exposure

Bollox - ...

I think you'll find you are wrong there AtW.

Minimising tax liability is definitely on the menu.

[HairyArsedBloke]

I watched that Dispatches last night too.

HAB Inc's old offices were in one shot. So was HAB's local. HAB's home was just missed.

[SupremeSpod]

If they don't claim VAT that they are owed then yes, it can be dereliction of their duty, however it is not dereliction to refuse to take part in dodgy schemes involving lots of offshore companies.

Nothing Dodgy about it. If the mechanism is there, exploit it.

[AtW]

It would be a dereliction of their financial duty of they didn't claim what they are entitled to against tax.

If they don't claim VAT that they are owed then yes, it can be dereliction of their duty, however it is not dereliction to refuse to take part in dodgy schemes involving lots of offshore companies.

[lilelvis2000]

I watched that Dispatches last night too. A great many Tories are saying one thing and doing another.

[Sysman]

Bollox - financial director's job is to ensure company has got sound finance (ie cashflow), money don't get stolen etc.

It would be a dereliction of their financial duty of they didn't claim what they are entitled to against tax.

What everyone seems to forget is that many of the so-called "tax avoidance schemes" were in fact deliberately enacted to encourage investment in specific sectors of the economy.

TESSAs, ISAs, tax relief on mortgages?

[AtW]

It has always been a financial director's job to minimise tax exposure.

Bollox - financial director's job is to ensure company has got sound finance (ie cashflow), money don't get stolen etc.

[Doggy Styles]

Of course they back spending cuts. It saves the government from having to come after them for the wholesale tax avoidance schemes most of them are pulling. I'm sure I read a figure of upto £12bn a year avoided by large UK based corporations through the use of blatant corporation tax avoidance schemes.

This Tory government are corrupt scum.

What's wrong with using blatant corporation tax avoidance schemes?

It has always been a financial director's job to minimise tax exposure.