This article in the Observer is intriguing. Brown faces revolt over energy windfall tax.
Two things strike me about this article. Firstly, the leitmotif of the Compass group led by New Labour lobbyist Neal Lawson is “raise taxes”. This organisation has been bombarding MPs and activists with emails all summer about how we need to punish energy companies for raising their prices.
Lawson was employed by energy companies as a lobbyist, and used to boast on his company brochures that “we [his lobby firm] are in-touch and in-tune with the new government”. Now, after failing to find a parliamentary seat, he chooses to speak for an organisation that is so laughable you can can get elected to their executive with nine votes. Well, strictly speaking, and this being Compass, that’s nine first preference votes requiring 11 rounds of transfers under an STV system. On those numbers, the “spoilt ballot papers” candidate nearly got elected.
Secondly, and this is where the story needs a little clarification, the article claims that my friend and colleague John Robertson “has emerged this weekend as the first junior member of the government to back a windfall tax publicly.” Apparently a delegation will seek urgent talks on the prospects of a tax.
I phoned John this morning to find out what the story was about. As ever, the picture is slightly different to the one portrayed in the Sunday newspaper.
John told me that the energy companies need to demonstrate to their consumers that they understand that people are really feeling the pinch. He wants them to act to help their worst off customers. He believes that the energy windfall tax should be considered amongst other potential initiatives that could help hard pressed energy users in a time of rising prices.
Other initiatives, which are particularly important in John’s constituency, are ending the manifest unfairness of people on meters having to pay the highest unit price for their energy consumption.
In short, like most people, he wants the energy companies to get their acts together.
This more thoughtful position strikes me as being entirely sensible. Still, it’s a thoughtful position that would prohibit a leader writer typing the “Brown faces revolt over energy windfall tax” headline. It’s Sunday. It’s August. And these are interesting times.
Now, I’m off for my second week’s holiday on the British Coast. Can you feel the warm glow of patriotic one-upmanship in my tone?
6 comments ↓
I’m sure the electorate will much prefer politicians to be having “thoughtful positions” on these subjects rather than doing something positive. Gas and Electricity prices are hitting people hard,, and water companies are hinting that this is a gravy train they quite like the look of.
Shell announces record profits while pensioners worry over their fuel bills. Trouble is, ‘new Labour’ is in thrall to big business as much as the Tories.
The pre-pay meter thing seriously needs sorting. I’ve had that three times on the doorstep in the last week. We promised to force the energy companies to take action if they didn’t do anything themselves and it’s time to make good on that.
[...] “As ever, the picture is slightly different to the one portrayed in the Sunday newspaper,” wrote Tom Watson on his popular blog. [...]
Predictably, my views on Compass differ, especially given the shocking state of plenty of other Labour movement organisations. When they release the votes for Labour First (or indeed whether or not it even has an exec… it’s like an old right version of the non-existent Socialist Action!) I’ll gladly make a complimentary post.
John Robertson’s approach seems entirely sensible. I say this having shelled out £200 a month to run a pre-payed standalone electric heater in a freezing flat all winter.
But one extra thing: can those of us who aren’t ‘families’ have some help too please?
A windfall tax is completely unworkable. It only worked in 1997 because the energy companies were mostly British owned and had only recently been privatised. Labour are now dealing with massive multinational companies who earn most of their profits abroad, which the UK government has no right to touch. Furthermore, most of their profits have been handed out to shareholders or reinvested already - meaning that it is not taxable.
http://lettersfromatory.wordpress.com
Laughable? Well, Tom, think you may be laughing on the other side of your face when literally millions of voters don’t bother to vote for you next time.
I voted Labour in the last three elections - the last one with very great reluctance, but the provision of civil partnerships and the thought of PM Dracula was enough.
But just disliking the Tories isn’t enough. The goverrnment have run out of steam, they have no energy or vision, and like it or not, Brown is a disaster as PM. I didn’t agree with a lot of what Blair said, but he was a class act. Brown is simply the wrong person to be PM and you really need to wake up and realise it.
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