Observation On Will Miliband’s Bonus Bashing Pay Off To Do This Any Justices I have Included The Article Below:
Ed Miliband’s war on bonuses continues apace – spurred on by the shuffling retreat of Network Rail executives and RBS boss Stephen Hester.
Cue yelps of pain from business leaders – the CBI’s John Cridland has warned of a “witch-hunt”, while Lord Wolfson, chief executive of Next, said Mr Hester was “hung out to dry”.
Ed Miliband’s team say the reaction shows they are taking on business leaders -and it’s working.
They believe the public is firmly on side, and if they have to ruffle a few feathers to take on “vested interests”, well, it’s all worth it.
Of course, there are political points to be scored too.
Many within the party think Mr Miliband has had some of his best weeks since becoming leader – painting David Cameron as a former public school boy looking after his mates in the City.
But there are two potential pitfalls.
Firstly – Labour’s own record in government presents the Prime Minister with an easy come-back.
In their last exchange at Prime Minister’s Questions, Mr Cameron accused him of “hypocrisy”: “It was the last Labour government, when you were in the Cabinet, that agreed an RBS bonus pool of £1.3bn.”
Secondly, there is a political tight-rope to be walked between encouraging responsible capitalism and bashing big business.
Recently, some have stuck their heads above the parapet to express unease. The most resonating voice was David Miliband, who warned last week Labour “cannot afford” to lose the support of the business community after not a single big firm endorsed the party at the last election.
Generally, though, there is a feeling that Labour are on the right side of the line when it comes to bankers bonuses.
Both the Government and the opposition have committed to tackling irresponsibility at the top end of the income scale – and the bottom.
So far the feeling is neither side have managed to crack both. One of the Prime Minister’s inner team recently admitted to me: “We’ve been very good at irresponsibility at the bottom [through welfare reform] but we’ve been less good at dealing with irresponsibility at the top.”
And a Labour source told me: “Ed’s has done great articulating what the public feel on bonuses, but less well on welfare.
“Both Ed Miliband and David Cameron say they want to deal with irresponsibility at the top and the bottom. But they are failing to do the one that comes less easily to them.”
The feeling in Westminster is that the politician who manages to speak equally convincingly about the welfare cap AND tackling the culture of excess in the City would be a force to be reckoned with…
How many people who like to get the ideal job with a bonus scheme like the directors of banks?
To be honest both the present and previous governments has missed opportunities to put a cap on the limits on bonus. It’s all to easy to say that big businesses will move out of the capital and move elsewhere then have the cheek to say “Oh it’s Labour that left us in this mess”.
The sooner we all face up to the fact that there is a high employment not just in the UK but internationally. No doubt that there is a case that Labour could have done things better but let’s not forget that Tories has to take some of the blame too when they left office they left a deficit which Labour took on under the guise of prudence.
Let us not forget that it was under Labour saw banks taken out of government control. How funny that the coalition wants to take control of the banks yet they have little or no policy to take it into public ownership.
Stephen Hester’s reluctant decision to refuse his £963,000 annual bonus must not be regarded as “job done” by opponents of bankers’ rule in Britain.
Neither this one-off positive result nor the clamour to deprive his predecessor Fred Goodwin of his knighthood can be seen as the sum of our aspirations to rein in these bloodsuckers.
While part of the media applauds Hester’s acknowledgement that he had no real choice, others regret the successful campaign against his excessive payout as a victory for mob rule.
Retired merchant banker David Buik, who is a TV studio regular to put the banks’ point of view – as though it lacked a sympathetic editorial airing – fulminated three separate times in one brief contribution that the decision equated to “a blow to democracy.”
A lot of parental money was clearly wasted on a private education if Buik believes that bankers’ inflated incomes are somehow the outcome of a democratic process.
In reality, a self-perpetuating elite in the banks and other major City institutions award themselves sky-high rewards, often via the fig leaf of “independent” remuneration committees.
Politicians of the major parliamentary parties are complicit in this plunder, having finance houses fund their private offices as part of the process of merging the interests and political priorities of finance capital.
The capitalist media too is enmeshed in this elitist cabal. They receive advertising from the banks and are led by editorial personnel sharing the same social class and private education as banking bosses.
Some commentators think that Hester conceded to avoid the embarrassment of having his personal pay package debated in Parliament.
Others hint that he and other RBS executives are ready to jump ship at politicians’ new-found failure to realise the need to pay world-class rewards to attract world-class performers.
These people should try the real world. Public-sector workers, as they are, constantly have their pay, pensions and jobs debated in Parliament, where previous negotiated agreements are casually set at naught.
If world-class rewards actually attracted world-class performers, Goodwin should have been superlative.
He was paid £4.2 million in his final year, had an £8.37m pension pot, paying an annual pension of £579,000, and was also given a knighthood. And he bailed out in 2008 just before RBS announced a loss of £24.1bn. World-class performance?
If Hester and his mates flounced out the RBS door, where would they go? Is there some previously undiscovered global demand for British bankers, paid above international going rates, in overseas banks?
Of course not. The improved RBS results owe more to government finance at 0.5 per cent, credit at punitive interest rates to customers and refusal to risk financial support to small businesses, to say nothing of over 30,000 job losses in the past three years.
An unimaginative small-town bank manager could achieve similar results in such a situation.
This is no time to lift the pressure on the banks. The stranglehold they have had on the economy and on politics has prevailed unchallenged for too long.
There are many who will beg to disagree on what I’m about to say “Gordon Brown was one of the best chancellor this country had in managing the economy for this reason I give no apology for giving the credit where it’s due”.
Instead of a united Labour Party speaking in one voice instead many fractions still in my eyes are still pulling in different directions. This is where the coalition continue with the trade union bashing by saying Labour is in the pockets and Ed Miliband stab his brother in the back. Let us not that the Conservatives are funded by big businesses and other millionaires yet they fail to mention it. Come on Brother Ed Miliband hit the coalition where it hurts.
I and many party members who continue to call for a united Labour sees it being eroded. Let us not forget the bubble has now come to a end. Labour should be a head in the opinion polls yet time again voters want to see Ed Miliband shine by taking the lead this is not happening for the simple reason the party is pulling in different directions By the few and not the many who continue to believe in Labour values.