Saturday, 1 October 2011

The Cracks are showing

So another week and another series of poor stories for the government and it's handling of the economy.

So it is no surprise today that one of it's most influential backbenchers, the chairman of the Treasury Select Committee Andrew Tyrie has said the CONDEM government does not have a "coherent and credible" plan for growth.

He went on to say "A coherent and credible plan for the long-term economic growth rate of the UK economy is needed."

This echos the call by the Labour leader Ed Miliband at last weeks Labour conference.

The real problems of business of course is business confidence and their ability to raise capital to invest in developing their businesses in terms of development and job creation.

Will Hutton, who chairs the Big Innovation Centre, a partnership of 10 global companies including Google and GlaxoSmithKline, said the government needed to put more energy and long-term thought into making Britain a home for new sectors, for instance technology.

"It is this sense of lack of mobilisation, lack of sense of purpose that is dismaying everyone," he said.

So, instead of investing in Universities and financing a Green Investment bank & Innovation Banks to develop the "New Economy" we see a typical Tory response to a crisis caused by a banking crisis; to attack workers rights.

The latest wheeze from Osbourne is to attack workers rights, this workers with less than two years' service will be prevented from taking their employers to a tribunal for unfair dismissal.

This thinking comes from a belief it is workers that cause businesses to fail, but all the evidence points to small and medium sized businesses being starved of investment capital by Bankers.

These financiers of course fund the Tory Party, like hedge fund managers, who's role in life is to use peoples money to gamble on the future and make a profit, this sector gives £1.4million to the Tories.

Then we have the bankers, the same people who pay themselves huge bonuses for no real performance and starve business capital, they pay the Tories over £600,000 in the last year.

Then we have the insurance companies just about £180,000 a year to the Tories and for this curbs on Legal Aid Budget £350m and shift part of the costs of bringing no win, no fee cases from losing defendants to winning claimants. This reduces the liabilities of companies and their insurers if they unsuccessfully defend a claim, because it will force claimants to pay out of any awarded damages their lawyers' success fees and insurance policies that cover court costs.

With the five biggest building companies donating hundreds of thousands of pounds to the Tories in the last year, now we see the unfortunate Pickles saying he wants to "load the dice" in favour of developers.

So big businesses investment are baring their fruits in terms of government policies.

As the GMB union responded to the Conservative Party's proposals on employment rights, saying: "The Tory Party is increasingly being funded by the asset strippers and predators. That explains why the Tories want to reduce the employment rights of ordinary workers not to be sacked from their livelihoods unfairly. They are the same old nasty Tories now in the pockets of the predatory elite."

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