Tuesday 30 September 2008

US Bail Out Failure Demands Decisive Action From Gordon Brown

The failure of Congress to support the Bush bail out plan has put even more pressure on our own Government to take swift and decisive action otherwise the prospects for the British economy are a much deeper and longer recession. If the market fails the only solution is Government intervention. We can't wait much longer.

What I am amazed at is the lack of comment and reaction from across the Labour Party other than from us at LEAP (The Left Economic Advisory Panel). We may not receive the coverage of our views in the mainstream media but at least we are using whatever opprtunity we can to present an alternative analysis and policy proposals.

That is why I put out this further press release about the lack of decisive action by Government.

US Bail Out Failure Demands Decisive Action From Gordon Brown

Labour MP John McDonnell, chair of the Left Economic Advisory Panel, has called for decisive action from Gordon Brown in face of failure of US bail out plan.

John said ”After Bradford and Bingley and the failure of the US bail out plan we are facing further collapses and a long and deep recession. Simply addressing this crisis in Britain on a case by case basis means that the economy is staggering from one crisis to another into recession. The root cause of this crisis is the Government’s policy of allowing the housing market for over a decade to be used for profiteering speculation rather than to provide homes. The resultant crisis of confidence in the financial institutions has created a self fulfilling crisis of liquidity. Gordon Brown must take decisive action before it is too late. I am calling upon him to bring the home loans industry under pubic ownership and control and override the Bank of England Advisory Committee to cut interest rates decisively.”

Sunday 28 September 2008

Credit Crunch Latest

I am desperately busy in my constituency and with various initiatives in unions,on the Left and progressive campaigns so blogging time has been limited to non existent. Just to let people know what I have been saying over the last 24 hours on the latest events in the current crisis of capitalism, aka the credit crunch, I have posted the last two press releases I have put out on this weekend's developments.

Saturday 27th September

Labour MP John McDonnell Warns Brown Against US style Bail Out Plans and Calls for Urgent Cut in Rates.

Labour MP, John McDonnell has warned Gordon Brown against any plans to follow the American model of bailing out the bad debts of British banks and financial institutions.

John McDonnell is the chair of the Left Economic Advisory Panel, a group of economists established 5 years ago to provide economic analysis and advice to the Left.

John said ”People will be extremely angry if Gordon Brown tries to use taxpayers’ money to implement a US style bail out of the bad debts of Britain’s financial institutions. Every year we have witnessed obscene levels of bonuses doled out in the City. Ordinary people struggling with housing, food and fuel costs should not be forced to pay for the profligacy of these city’s speculators. Allowing the City to pass on its poor investments to the taxpayer whilst retaining the cream of the crop is simply not acceptable. Nationalisation of all the assets of an institution is the only fair way of balancing the risks to taxpayers. Given the current liquidity trap the Prime Minister needs to introduce an immediate and significant cut in rates if we are to avoid further institutional collapses.”

Sunday 28th September

John McDonnell MP Calls on Gordon Brown to End Bail Outs and Produce a Credit Crunch Strategy.

In response to the Government’s decision to nationalise the Bradford and Bingley, Labour MP, John McDonnell, Chair of the Left Economic Advisory Panel, has called upon Gordon Brown to end the one of bail outs of financial institutions and to produce a credit crunch strategy.

John said “The Government cannot continue just reacting to each collapse of a financial institution as we drift towards a potentially long and deep recession. The taxpayer shouldn’t be required to pick up the tab for the bad debts of the speculators. Ordinary people shouldn’t be forced to pay for a crisis not of their own making.”

“The Government needs to produce a coherent strategy for both the immediate threat of recession and for the long term housing market. To overcome the current liquidity trap we need an immediate and significant cut in rates to avoid deflation. This means if necessary overriding the Bank of England Advisory Committee.”

“At the same time we should use this opportunity to reconstitute the housing market as a provider of homes for families rather than as a tool for speculative gain. This entails bringing into public ownership and control all those financial institutions involved in home loans, controlling lending and converting mortgage defaults into social housing.”

Sunday 14 September 2008

Denounce the New Labour Faction Fighting andLet's have a Labour Leadership Election Based on Policies Not Personalities

I took August off from blogging simply because most of my time over the last month has been spent on time with my family, catching up on constituency work and preparing for the launch of the Trade Union Co-ordinating Group at the TUC. I last blogged when Miliband was positioning himself just in case there was a leadership bid and just as I return to the blog many of the loyalist of the loyal Blairites are attempting a coup.

I find it ironic that many of them are now arguing that part of the problem is Labour never had an election for leader last year. It is also typical that this this bitter internal infighting between New Labour factions has not raised a single difference in policy or political ideology. Both the Blairite and Brownite faction fighters have voted for virtually every policy implemented over the last 11 years, which have alienated our supporters and are delivering us up to the prospect of a Tory government.

I have largely declined media interviews because I just thought the Left should stand above and not get dragged down by this unseemly, internal, opportunist New Labour infighting. However a number of activists urged that we remind people of our position that for the Left the issue of the Labour leadership is about policies not personalities and that whilst we have wanted a leadership election for the last 2 years we believe it has to be a debate about alternative political analyses of the world we face and the alternative policy programmes that follow from them.

That is why I put out this short press release yesterday evening.

Its Like Watching the Crew having a Punch up on the Deck of the Titanic.

Commenting on Labour Leadership debacle, Labour MP John McDonnell said:

Most Labour Party members are looking on aghast as the Blairites and Brownites fight an irrelevant turf war. Its like watching the crew having a punch up on the deck of the Titanic. Without a single policy difference between them they are willing to destroy a Labour Government. I challenge both of them to publish a policy programme to put before our members for support and lets test the views of our supporters on the way forward for Labour.

Of course we are up for a leadership election at any time but our task is to ensure that we use any leadership talk or actual election as a platform for our policies and to demonstrate to our supporters and the country at large that there are socialists within the Labour Party that are willing to stand up for them as this recession hits our community.