As Gordon goes through desperate efforts to show he is a leader he has succumbed to the public outcry about bankers and he is going to curb their bonuses. Great stuff – I look forward to it! Probably means another expensive quango first though. The first hedge fund announced its move to Geneva about 23 minutes later and the first company announced a massive stock issue on the Hong Kong market 16 minutes after that. All because Gordon announced he wanted to curb their excessive behaviour.
Do I believe this hedge fund and the stock issuing company made their moves because of Gordon? Not really, but the press would like us to believe it. Let’s put some of these things into perspective. The hedge fund moves to Switzerland. A beautiful country where I have spent many summers and winters but I have always found outrageously expensive. No doubt the income tax rate is low, but what do the Swiss use to fund the superb infrastructure?
The Swiss have some of the best roads around and the best railways. They are also amongst the most expensive. Building a road or a railway crossing the Alps is slightly more challenging than through our countryside. So the government must get the money somewhere. I suspect their schools are good as well as their healthcare. All that is paid through something called taxes. It may not be raised in the same way as over here, but it is raised and I don’t believe it is all through a little tax disc we tourists have to buy. Good luck hedge fund – I hope you also like skiing.
Raising money in Hong Kong? Well no real surprise there. The Far East loves mineral companies, so you have gone after the money. I am sure lots of companies raise money over there. In fact, I understand some of our banks have raised money in that part of the world. Great place Hong Kong – I loved it.
The fact is that maybe the time of being the financial centre is moving on. Well that will cost a lot less jobs than when the mining companies closed, or the dockyards or the steel mills. The economy moves on and we have to understand that we also need to move on to the next thing and that brings me to Enterprise Britain.
One thing is for sure, no matter where the next boom comes from or what will form the centre of our enterprising economy, Enterprise Britain will very much form a part of it and will probably lead the way. Enterprise Britain stays and does not move to Switzerland or Hong Kong. Enterprise Britain will find the new markets, the new opportunities, the new sources of enterprise and wealth. So Gordon, how about supporting the future of the country because even you know who will provide the future wealth. In fact they also provide your voters if you get very very lucky.
And Gordon, regulating bonuses is virtually impossible – most hedge funds are in fact off shore so they will pay what and where they want anyway. Most of us dislike what the bankers and hedge funds have done, but remember who pays the taxes – it is Enterprise Britain, so take care of us.