As MPs begin their ludicrously long summer recess a zombie style apathy is covering the flu-drenched population. Animal sanctuaries are putting up ‘Full’ notices as owners simply give up and depart for long breaks. The Inland Revenue remain hard at collecting all the money they can and the banking system is in chaos. Gordon Brown has given up trying to pretend that the Banks, nudged by the Government, are trying to help enterprising businesses. The FSA, fuelled by power and money, are becoming the new monetary police force.
But there is an even greater threat. A majority of Enterprising Business owners/managers/workers are repeating the mantra: ‘The Election is less than a year away’. They await the Conservatives. That means George Osborne.
If George had any sense he would repeat the process that Gordon Brown adopted when becoming Chancellor in 1997. He accepted Conservative spending plans for two years. George should do the same ie. he should allow the measures being introduced two years to become effective. If then change is needed, fine.
What is he proposing?
1. The abolishment of the Financial Services Authority. Is he stark raving bonkers? The FSA have just been given a massive (40%) increase in their budget. They are recruiting like mad. Has anybody thought this through?
2. More regulation by the Bank of England. Two problems here: the last banking crisis was in 1973. It won’t happen again. So George is going spend a fortune preventing something that isn’t going to happen.
3. Whatever George proposes (and gets enacted) the banks and financial institutions will be light years ahead of him. I hope George reads ‘Fool’s Gold’ by Gillian Tett whilst he is sitting on the beach somewhere. He’ll probably catch the first plane back if he does to sack his advisers.
If it wasn’t so serious it would laughable. Winston Churchill once suggested that whilst democracy is not perfect it is the best system we have. George Brown has demonstrated that its biggest weakness is that is produces short term solutions to long term problems.
Continuing our campaign against business angels (as the BBC launches another series of ‘Dragon’s Den’) recent press comment on a former member of Dragon’s Den, Richard Farleigh, contained the following comment: “ The more money you have, the more access to law you have – the system is far from perfect – which means bigger competitors may have an advantage….the UK has one of the most expensive jurisdictions in the world.”
So as the BBC encourages helpless applicants without any representation to face a group of business angels (who should be regulated by the FSA) media hype overtakes common sense…by miles.