Friday, November 10, 2006

Should MPs Pay for Regulation Failure?

Labour Minister Ian McCartney thinks that MPs should donate a day of their pay to bail out those who have lost their Christmas club savings through the failure of Fairpack. MPs have now been put in an impossible position. If they don't pay up their local newspapers will paint them as scrooges.

My old opponent in North Norfolk, Norman Lamb, has spoken out against McCartney's idea, describing it as a 'gimmick'. He's quite right. No doubt he'll get castigated for it, but I hope MPs of all parties tell McCartney that charitable giving is a private issue and should remain so. Being blackmailed into paying up is not the the way to go. Instead, McCartney should be looking closer to home and how these Christmas clubs are regulated by his own department.

21 comments:

  1. Donate to whom?
    And how?
    No doubt he's planning another government Qango with a cocked-up IT system. A consolatory employment opportunity for those poor unfortunates who got the boot at the last Municipal elections. If so, expect the re-imbursement payments to arrive sometime in early 2010 - just in time for bit of positive spin before the next general election.

    Mind you, there's the germ of an idea here. Dock MPs pay (or pensions) if they pass legislation that doesn't achieve what is intended or has significant unintended consequences.

    That might make the buggers think a bit more before foisting their idiotic enthusiasms on a long-suffering public.

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  2. What about all the failed pension funds which ministers encouraged punters to think were safe? That should bankrupt a few ministers.

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  3. What has the failure of Farepak a Christmas club got to do with anyone other that the creditors and the customers who have paid in and will receive little or nothing? Why do NuLab politicians need to get involved? Its because the media has picked up on it focused on the children of sadly poorer families who will go without this Christmas.
    NuLab being NuLab with their desire to regulate and control everything pile in, never missing the opportunity for a PR stunt and being "seen to do something" when we all know the never do or delivery anything, unless the media is involved. How come Ian McCartney didn't ask MPs to donate a days pay towards, say the Asian Tsunami appeal where thousands died, but seemed to think Christmas hampers more important that alleviating death and natural disaster? Perhaps because is children and Christmas make better PR. What a bunch of hypocrites.

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  4. No they shouldn't pay. It's Labour's watch that this happened on and the days' pay is drop in the £30-40m ocean. I also disagree with McCartney's view that this is a "national emergency". An emergency would be a new and pressing problem. The parent company's shares were suspended in August.

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  5. caveat emptor. if people are bailed out of this sort of thing, they'll only do it again.
    The govt should make quite clear that this "rescue" plan is the last time they'll ever do anything like this.

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  6. "I want to see taxes on people standing in water", if you remember the character from Monty Python's Flying Circus...

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  7. I totally agree with Guido, many have lost their pensions and no one's lifted a finger for them. Here, just one company goes bankrupt leaving its creditors in trouble.

    This time last year, I gave £8k of supplies (IT equipment) on 90 days credit to a smart motorbike dealership in South London, just before it went bust. My family had a crap Christmas but we didn't expect MPs to donate their salary, it was my fault in a way for handing the money over without getting payment so quick.

    The same goes for the Farepak people, they should have saved their money with a bank. Only most Farepak customers are probably Labour voters so McCartney can play to the gallery.

    If a wine merchant like Berry Brothers was liquidated (no pun) tomorrow, and the wine held in bond lost, would McCartney save the claret drinkers?

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  8. its just bloody mad. puts MPs in a stupid situation.

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  9. I hope the Farepak "agents" have paid their tax on the commission they received for collecting these savings from their friends and neighbours.

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  10. The market will, as ever, provide for those poor unfortunate poor people. And it will do so in the form of the admirable yet oft unheralded or praised loan sharks.

    God bless 'em, every one. The poor shall feast upon the finest turkey twizzlers.

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  11. GuidoF: Are you proposing that as NuLab regulates (or wants to regulate) everything then the government is accountable for everything. If the Pie shop around the corner from my house goes bust, can I get my pie money back from the government as they failed to adquately regulate that Pie shop under (Pie Shops, Regulatory Framework 2006) though the failure of OffPie's supervision
    Failed pension funds (Allied Steel & Wire) are a totally different point to do with the government badly wording a pensions leaflet saying that company pensions were absolutely safe. In the case of inolvency they are not. Guido, I thought you were a low-taxer. We'd need pretty high tax to cover the vacarious liabilities you want the government to undertake!

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  12. I'm sure NuLab's involvement has nothing to do with the fact that the majority of Farepak's customers are (a) working class; and (b) Scottish.

    If one were cynical, this might be one possible explanation as to why Gordon Brown has cast aside his usual reticence at getting involved with private company's affairs (remember MG Rover anyone?!).

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  13. Before you and Norman Lamb try and make political

    Xmas clubs are not regulated in the UK

    If they were regulated they would not be regulated by a Government department - financial requlation in the UK is now undertaken by bodies which are independent of government departments.

    Given this it is difficult to blame Ian McCartneys department for a failure in regulation.

    Usually you would be the first to bleat if the Government tried to extend regulation into new areas - and I never remember Mrs Thatcher being against business failure. On the other hand if you have now joined the sensible any suggestions for new areas to regulate would be very much appreciated - libellous bloggers anyone?

    Your failure to even get the name of company concerned right - does rather show that this is a case of engaging keyboard and prejudice before thinking!

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  14. This is, unfortunately, the kind of crap we Scotch get on a daily basis up here in Socialistlandistani. No thought, no policy, just let the people free - as long as someone else pays. I look forward to his other 364 charitable causes.

    As is said on the streets of the above mentioned region: pyoour sheeite, man.

    ScotsToryB

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  15. This is a dangerous game. If this was agreed it would only be a matter of time before momentum gethered for MPs to do the same for something else. I hope it is resisted.

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  16. Personally I think Ian McCartney should pay a day's wages, then we can find 364 other groups of people that have lost out under this government and he can repeat the exercise. It'll make him look forward to leap year at least.

    I agree that it is a ridiculous gimmick that has given a few cub reporters on the tabloids a new purpose in life calling around the MPs.

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  17. If only MP's would be so generous on other issues issues of great public concern

    Who will pay for the whole in the Labour Party Finances, Mr Mcartney?

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  18. The point is that farepack should have been regulated- it was essentially a savings scheme so should have been watched over by the fsa.

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  19. No they should not, but i would link MPs pensions to the state pension. Then see what a difference that would make.

    I would also link their salaries to the overall econmic performance of the country.

    They then may think twice before they keep spending our money.

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  20. MacCartney is a complete wanker. Who the hell is he to tell us what to do. If he feels strongly about it, send the appeal £5000 and shut up about it. Only we can decide whom we wish to help.Fascist NuLab gimmick.

    The people who neeed Govt help are those dispossed of their rightful pensions. They have been punished for being prudent. Disgrace. Cameron should say loudy and clearly that the deficits will be made good by Govt.

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  21. I am in absolute agreement that Ian McCartney's plea was a shameless gimmick. Many of the big shops are helping by donating vouchers - that is the way to go

    However, people on this blog needn't be so disparaging about those who use Christmas clubs. Here they are trying to do the right thing - saving and not getting into debt. Try telling your five year old that Santa won't be visiting this year. Or is it a case of let them eat cake?

    .

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