The Sunday Quote

''Where there is great power there is great responsibility .... where there is no power there can, I think, be no responsibility.''

The Rt. Hon Winston Leonard Spencer Churchill KG OM TD CH FRS - 28 Feb 1906

From The Square

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.... Or perhaps more accurately from The Editor's Telegraph.

The Booker column today has a heart-warming tale; It describes how a couple, Graham and Sara Blackmore who ran a small skip hire company in Cardiff, had been turned over by officials from the Environment Agency and finally, having had their "day in court", had come away found innocent of all charges.

The story speaks for itself and is well worth reading on the link provided. But, what does not come over from this tale on its own – but will be apparent to regular Booker column readers – is one essential feature that makes it news. That "news" is the very fact that, despite being "framed" by the Environment Agency with a series of malicious, trumped-up charges, the couple were actually found "not guilty" in a court of law. This is not always the case and in a distressing number of instances, innocents are found guilty of "administrative" offences by courts which too often support "their officers" – the officials – right or wrong. I recall many such situations in my 10 years as an activist with the Federation of Small Businesses (FSB).

A particular case is that of Janet Devers, featured heavily in The Sunday Telegraph today the week before the last the hapless lady was found guilty by Hackney magistrates for offences under the Trades Description Act.Apart from the issues involved – the sale of goods measured using the Imperial system – a review of the evidence demonstrates that the trading standards officer did not prove his case. There were major technical flaws in his evidence, in key areas he was shown to be lying and evidence was given from a number of witnesses that events the TSO claimed to have happened – which were essential to secure a conviction – simply did not take place.

On those grounds alone - without considering the general merits of the issue - the case should have been dismissed. But the Magistrates chose to believe the version of events offered by the officer – even though, under cross-examination, he had admitted they were not true – and convicted Janet. She is now to appeal; as one who has won more than one appeal against the injustice of lower courts as well in other cases of over over inflated small minded egos have needed to be brought bang to right, I wish Janet every success.

Yesterday we must note with concern that The Daily Telegraph was headlining – front page in the print copy – the "victory" by the metric martyrs. It is not a victory; far from it (Anyway the Metric Martyrs title is a misnomer, they should be the Imperial Martyrs but that is an other issue).

The EU regulations have not been changed and until they are nothing has changed. All that is being proposed – and then only in the next few months – is that UK local authority "guidelines" on prosecution are to be changed.What can so easily be changed administratively can, in a few years time – when everybody has forgotten the "victory" and moved on – can be changed back again; even then, this is just a "guideline" which, can be ignored anyway. It has no legal effect what so ever.

The key to all this though is the Rt Hon John Denham, the Innovation Secretary, he apparently issued guidelines that prevent local authorities in the UK taking traders to court. He is cited as saying: "It is hard to see how it is in the public interest, or in the interests of consumers, to prosecute small traders who have committed what are essentially minor offences."But who is Mr Denham's boss? None other than the Prince of Darkness himself, Peter Mandelson now Lord Foy - the master of spin.

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I have had more than one conversation over recent years with his (now) Lordship. There is no doubt whatsoever about his intentions on full European integration which includes metrication (presumably he has now or for the time being at least , dropped the 'Stalinist' regionalization plans so favored by his fellow New Labour lovies!)

Small businesses in our once great nation have much to concern themselves about at this time, not least the ripple effects of incompetent senior bankers across the globe (with the notable exception the ''the worlds local bank'' the HSBC) officials and bueaucrats driven into action by EU regulations that quite simply do not have public support (or indeed logic). The FSB as the UK's biggest business organisation, is also, according to its web site '' the leading voice of small businesses at the heart of the European Union'' (EU).

Through their dedicated (small) office in Brussels, and their EU team, they no doubt try to ensure the voice of very British entrepreneurs is heard but it is clearly impossible (when one understands what is actually happening with the implementation of so much EU regulation) to make any difference what so ever.

Thus this is how we are now governed in the UK and many of us are getting fed up with it. One wonders what the Federation of Small Businesses can actually do other than support members to the hilt when ''the Inspectors call''. No wonder as I am fond of repeating FSB representative members have twice voted (1995 and 2001) to demand a withdrawal from the EU.

So there we have it, I feel a letter to Colin Stratton (FSB NE Regional Chairman) coming on or perhaps (or indeed both) a visit to the North East Regional AGM on the evening of the 6 November to (the now very referbished ) Grand Hotel in Hartlepool, I know they will be pleased to see me I am after all a member; I was once very active in the FSB, the largest business organisation in the Realm.

Peter Troy
8&9 The Square
Sedgefield.

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The Sunday Quote

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''We must be clear about this it does mean, if this is the idea, the end of Britain as an independent European state … it means the end of a thousand years of history. You may say, "let it end". But my goodness, it is a decision that needs a little care and thought.''


Rt Hon Hugh Gatiskell (1906-1963) leader of the Labour Party from 1955 until his death in office in 1963.

In October 1962 Hugh Gaitskell electrified the Labour Party conference with his 105 minute speech, wholly dedicated to the Common Market, he delivered the singular and now oft-quoted passage that has proved to be horribly prescient.

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Time for Tea

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(Flash back, Tea time with Troy on board HMS Trincomalee, 20th September 2005.Graphics courtesy of Radio Hartlepool).

What is happening in this country and indeed the world with regard to the banking crises is so enormous that it is almost too scary to think about. That is, of course, why so many people do not think about it.

That phenomenon is a variation of this, a very natural human reaction to something which is just beyond the capability of most people to deal with.In fact, it is more akin to the reaction of the archetypal housewife on being told that World War II had broken out, busying herself making a pot of tea. At times like this, we all retreat into our comfort zones, close our minds to the impending disaster and hope for the best. But disaster there will be – we are already in the opening phases, and "making a pot of tea" is not going to solve it. But this is not a "sky falling in" type of disaster. That is the wrong analogy.

This is more like the "Temple of Doom" movie. We are trapped in a room, with the ceiling – complete with wicked spikes - getting lower and lower, threatening to crush us all. But every now and again, the ceiling judders to a halt in its downwards path. We breathe a sigh of relief, and hope it is all over. Then it lurches into action and the nightmare continues. One of those "lurches" happened this week, with the stock exchanges plummeting worldwide and the FTSE falling three percent on Thursday, driven by "fears of a recession".

Not only are we reaching into the depths of banking theory which, frankly, very few people (particularly senior bankers) understand we have the overlay of highly complex regulatory systems, framed at national, regional and global levels, together with national and international politics and, of course, the drama of the events themselves.

One yearns for some wise soul to reach out and explain it all, in very simple terms, telling us what to look for, what matters, what is fluff, and to where all this is leading. That, of course, is the stuff of dreams – of child-like fantasies. In truth, there is not one problem but many, all interwoven, and the complexities of modern politics, played out on an international tableau, are such that they defeat even the most experienced commentator.

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How about tea with Troy ? It won't solve anything, but at least it'll make us all feel better.

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Peter Troy. Editor of this blog

Photographed during a recent visit to Jersey CI.

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Reaction

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The implications for the future of the banking industry of the domino effect of the great banking crises hardly bare thinking about.

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There is a mass of comment available across the UK media today and blogosphere; it is impossible not to feel a frisson of panic at the idea that not only bank machines might run out of money but also that the engine room of the British economy - that's the small business community - will soon run short of vital support from banks who could shortly be powerless to support vital lending facilities.

It has to be said that in the face of the global banking crisis the reaction of our government and that of the US could not have been more different in terms of openness.

In the US a plan was formulated in broad daylight, subjected to intensive public scrutiny and debate, put before both the US Congress and the US Senate for approval and again subject to massive debate before being approved by the democratically elected representatives of the country and put into action.

In contrast here in the UK what do we see ?

As the Banking crisis developed , our government dithered – it reacted to events rather than taking the initiative with a pro-active strategy. The main action was a series of meetings with the institutions of the European Union behind closed doors and completely misunderstood by business lobby groups and the national media.

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It is only after a closed meeting of EU finance Ministers (Ecofin) last week, we see action taken. Parliament is not consulted, there is no public debate. Both Parliament and the people are simply told what is going to happen, there is no vote, no approval just a done deal.

Therein lies the difference – on the one hand in the United States we see, with all its imperfections, a functioning democracy in action. Here in the UK by contrast, in Britain the mother country of modern democracy, we see a cabal of rulers working behind closed doors, coming out into the daylight only to inform us what they have done and how much it is going to cost us.

Thus is how we are now governed in Britain secretly, badly and from Europe.
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The Sunday Quote

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''Banking establishments are more dangerous than standing armies''

Thomas Jefferson (1743 - 1826) 3rd President of the US.
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Faulty Regulation

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Dr Richard North has discovered cast iron evidence that the EU commission has known for at least a year that there have been disastrous "shortcomings" in its system of financial regulation. This system include the measures for the application of the "mark to market" rules which lie at the heart of the current banking crisis. His post on EU Referendum is recomended.

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Banking Crises Update

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Gordon Brown has promised that the Government will "do what it takes" to help families deal with the effects of the global economic crisis such as rising food and energy costs.e effects of the global economic crisis such as rising food and energy. Sounds fine but the UK government is not in charge! costs.

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The Daily Telegraph running out of hyperbole proclaims that the sky is falling in the banking industry and the situation is getting even worse. Christopher Booker in The Daily Mail reckons that this crisis could not only sink the euro, but the whole of the EU as well.
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The British media haven't begun to understand what is going on Ruth Lea for example who is writing about the British government having been "dithering" - ignoring the fact that it is ''Europe '' (EU) that is in charge. With increasing clarity, it is emerging that Messers Brown and Darling were waiting for the go-ahead before acting. That is why they took no action on Monday – they could not until they had had their marching orders from their political masters in the EU. Thus, overnight on Tuesday and into the early hours of this morning was the first time they could have acted, having been given the green light at Luxembourg to break the EU rules.
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Thus is how we are now governed.

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Dithering Darling

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Today, after days of "dithering" Chancellor Alistair Darling suddenly launches "a drastic rescue of Britain's high street banks in move designed to head off a cataclysmic failure of confidence."This just happens to be a day after an emergency meeting of the finance ministers of the 27 EU member states. Is this a coincidence?

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At the (EU) Ecofin meeting yesterday, two things happened. Firstly, the ministers effectively gave the green light to member states to break the EU's own state aid rules.Secondly, they turned their faces away from initiating structural reforms to the regulatory system, which might have freed the logjam in inter-bank lending – preferring instead to make one minor and largely cosmetic change.

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Now, today, we see Mr Darling introduce a scheme designed specifically to free up inter-bank lending, including the provision of at least £200 billion to banks under the Special Liquidity Scheme and the injection of £50 billion capital into a select group of British banks - to the general approval of the Europhile Tory hierarchy. Thus we see an alternative and far more expensive plan aimed at achieving that which the EU members states collectively failed to address.

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Furthermore, it is one which, in its totality, almost certainly breaches EU state aid rules, as well as being "discriminatory" – two of the EU's mortal sins.

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Whilst this is clearly not the end of the current banking crises; it could just possibly be the begining of the end of the EU as we know it!

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The Sunday Quote

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'' Human behaviour flows from three main sources, desire, emotion and knowledge''

Plato