Creativity in action

May 2, 2018

Winter of discontentThe Government suffered a defeat yesterday (appropriately, the 1st of May) brought about by the creative actions of two former ministers.  

The vote was over the proposed measures against money laundering by the Government, and considered by opponents to be weak on disclosures from well-known territories including the British Virgin Islands and Cayman Islands. This in turn followed revelations in what became known as the Panama papers.

The leaders (or ring-leaders, from another perspective) of the opposition were an unlikely couple, a former labour cabinet member, and Andrew Mitchell, a former conservative international development secretary. Both are currently out of favour.

Both have reputations of independence of thought and strong enough characters to take on all-comers in causes they believe in. However, without context, it is hard to imagine them plotting together.

The context, and the creativity of their actions deserves study. According to The Guardian, [May 2nd 2018] Mitchell ‘has frequently worked across party-lines’ , requiring independence and resilience in bucketloads. Hodge was a powerful and outspoken chair of the publics account committee for five years.

The strategy they adapted was aimed at protecting recent back-bench MPs from rebelling, as they were easier targets for political influences from the Government heavies (aka Whips). Instead, they concentrated on influential former ministers who were less vulnerable, and some with experience as members of the awkward squad opposing government policy. Mitchell was able to deploy an extra argument, that their proposals were a reviving of plans under preparation in 2015 by the former conservative leader (David Cameron).

In a nutshell, this was no knee-jerk reaction by two discontinued ex-ministers. It was a well-thought out plan which required both creative thinking and a lot of grunt work in the background.

 

 

 

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Google accused of being evil, doing evil by UK politicians

May 21, 2013

Do no evilGoogle stands accused of acting in a way contrary to its slogan “do no evil”. This continues a debate over tax avoidance, tax evasion and corporate social responsibility

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Last week [May 18th 2013] Google’s European leader Matt Brittin appeared before The Commons Public Accounts Committee in London to defend his Company’s tax arrangements in the UK. A pivotal point was the practice of declaring sales were completed in another country [Ireland] with more generous Corporate taxation arrangements.

The Chair of the Committee, Margret Hodge, was particularly vehement in her criticism of the firm’s methods of tax avoidance in the UK. The criticism had moved on from tax evasion (illegal) to tax avoidance (legal) in a way that amounts to serious departure from the corporate claims of good citizenship.

The Guardian reported that

“[The] Commons Public Accounts Committee Members reacted in disbelief on Thursday [16th May 2013] after it emerged that they paid just £3.4m of tax on £3.2bn of sales taken from UK customers last year as their sales were technically “closed” in low-tax Ireland.”

Writing in The Observer a few days later, Google CEO Eric Schmidt noted:

“It is tempting for every government to assume that they will benefit if and when the current [tax] structure changes. But in reality, it’s probably only a significant increase in corporation taxes globally that would make every country a “winner” – and the consequences of that would likely be less innovation, less growth and less job creation. That said, the UK government has the perfect opportunity to take the lead in shaping this complex debate at the G8 summit next month. We hope George Osborne seizes the initiative and makes meaningful tax reform one of the top items on the agenda.”

It’s a Tax Dodge, says Hodge

Margaret Hodge had made clear her view at the Committee investigation, telling Google’s European CEO Matt Brittin, that his company’s behaviour on tax was “devious, calculated and, in my view, unethical”.

[Mr Brittin] had been recalled by MPs after being accused of misleading parliament over the firm’s tax affairs six months ago. Hodge said: “You are a company that says you ‘do no evil’. And I think that you do do evil.” Hodge was referring to Google’s long-standing corporate motto, “Don’t be evil,” which appeared in its $23bn US stock market flotation prospectus in 2004.

Do no evil image

Image from grokdot

To be continued