Fuel taxes
The front page of the Daily Mail came as no surprise. It is a staggering statistic that '60 per cent of the price of unleaded petrol and 58 per cent of the cost of diesel is made up of duties and VAT in Britain, the highest percentages in the European Union'. I have argued long and hard for fuel taxes to be reduced radically. The Chancellor claims to have no more money, but I - and many others - say that that's because he's still spending more than we can afford. Rather than keeping taxes high, we should instead concentrate on spending less. There are plenty of areas where we could do that and until we only spend what we earn, our economy will continue to rely on high taxes, many of them - like those on fuel - punitive.
Posted on 28 February 2012 by Richard Drax
Fiscal irresponsibility
After having to resign from the Front Bench following revelations over his expenses, Lib Dem David Laws has popped up again demanding more punitive tax rises on the so-called wealthy. I've already written a blog on these populist Liberal policies, and I trust the Chancellor will have none of it and show Mr Laws the door.
Posted on 22 February 2012 by Richard Drax
Morally bankrupt
This £110 billion Greek bailout is nothing short of political betrayal. It's fool's gold and there's no way that Greece will be able to meet the stringent conditions imposed before they once again have to ask for more money. There is one solution for Greece and that's to default and reintroduce its currency. Sadly, politicians, including ours, continue to mislead us, and the Chancellor's recent comments that the bailout was good for Britain don't help matters. It's not good for Britain, Greece or the rest of Europe that we go on pouring good money after bad. And, worse, it's a betrayal of millions of people who in the end will suffer far more when this whole EU debacle comes to an end. I hope we don't see civil war in countries like Greece, but I suspect that's a possibility as Europe's leaders continue to live in their political bubble, floating on a cloud of hot air and fanciful dreams.
Posted on 22 February 2012 by Richard Drax
Populist move
The Lib Dems are past masters at broadcasting populist policies which make no sense at all in the real world. Tuition fees spring to mind. Now, the Sunday Telegraph reports that David Laws and his colleagues will continue to push to raise the income tax threshold to £10,000. The aim is seductively enticing, but it's wrong in principal. Everyone should pay tax, in my view, because all of us rely on the State for one thing or another in our lifetime - from the NHS to emptying our bins - and we should all contribute something. Yes, the better off should pay more, but only what is fair and that point is of course very subjective. The Lib Dem move is disingenuous to the point of folly and I am confident that the electorate will see it for what it is - a dangerous sop to win votes.
Posted on 20 February 2012 by Richard Drax
Education trade off
Details of another feeble trade off with the Lib Dems are just coming to light. And once again, I wonder what gives them so much influence in exchange for so little support. They have reportedly dropped their demand that students be penalised for trying to pay off student loans early in exchange for the appointment of Professor Les Ebdon as university access ‘tsar’. The professor – who is Vince Cable’s choice – defends ‘Mickey Mouse’ subjects and is determined to force highly academic universities to widen their intake or face ‘nuclear’ financial penalties. The Commons select committee, which interviewed him, recommended looking for further candidates. Unfortunately, since the Business, Innovation and Skills portfolio was enlarged by John Prescott, universities come under Vince Cable’s remit, so his choice stands and British education will suffer.
Posted on 17 February 2012 by Richard Drax
Greek tragedy
It’s difficult not to pity the Greeks. Whether the bailout funds from the EU and IMF are authorised or not this week, they continue to suffer. The austerity cuts imposed on them by the EU are draconian – cuts to pensions, pay and welfare, as well as interest payments to be made before any further funding is considered. It’s not surprising that six cabinet ministers resigned before a crucial vote to toughen austerity measures on Sunday. A recent article by Peter Oborne in the Telegraph says that suicides are up, 100,000 businesses have failed and that, by the end of this year, the fall in national output in Greece will be double that of Britain’s during the 1930s. With civil unrest growing, I fear this is only the beginning as things get worse.
Posted on 16 February 2012 by Richard Drax
Politics out
I watch with growing amazement as the Government responds to populist demands to interfere with knighthoods, bonuses and remuneration packages, generally. Politicians should keep well out of business and the market. From the Opposition, all I hear is a call for more taxes, as if this will placate the voters and fool sufficient numbers of them to consider voting Labour at the next election. This is the politics of envy and the fool. Having said that, there is no doubt in my view that business leaders, especially of public companies, should cut their cloth in hard times accordingly. We need leadership from the top of these companies to apply restraint, not indulge in what is perceived - rightly or wrongly - as greed. I think that entrepreneurs, on the other hand, fall into a separate bracket. If they make fortunes beyond our wildest imaginations through their own hard work, they should be allowed to do with it as they please. Remember, these risk-takers employ people and purchase goods which others make. The world goes round and everyone is the richer.
Posted on 7 February 2012 by Richard Drax
Utter madness
I am sure, like most of you, I am surprised, disappointed and angry that Abu Qatada, known as the 'hate preacher', is to be released on bail. Quite apart from what this man says, he is apparently wanted in eight countries to face terrorism charges. Apparently, EU judges are concerned that if Qatada is deported, he might be tortured. I'm afraid my view on this is quite straight-forward. He should have thought of that when he set out on his hate-filled path. There is no room in this country for people like Qatada. Send him home.
Posted on 7 February 2012 by Richard Drax
God Bless her
How typical of the Queen to mark her 60 years on the throne than to renew her vow to the nation, as it were. She is the most remarkable woman and we her subjects are fortunate and honoured to serve under her. The Queen has been, and will continue to be, part of the very fabric of our country. Her quiet dignity, and devotion to a job that none of us envy, are an example for every royal family, statesman and dignitary around the world to follow. Our nation is the richer, wiser and humbler for having such a Queen. The thought of President Miliband, or even Cameron, fills me with dread! God bless her and long may she reign over us.
Posted on 6 February 2012 by Richard Drax
IMF bail-out
The role of the IMF is not to pour billions of euros into failing EU countries, all of which are in a mess of their own making after years of reckless spending. However, the IMF is calling, apparently, for a further £320 billion, according to the Sunday Telegraph, which says "a large part of which could be used to prop up Greece, Portugal and other struggling states." John Redwood MP is quoted saying that few Tory backbenchers would support this, and I believe he's right. This whole euro-fantasy must come to an end and the sooner the better. Pouring good money after bad is not the way forward, either for the UK, or the EU as a whole. Bureaucracy and corruption is so rife in countries like Greece and Italy that it's not until they begin to put their houses in order that any sort of genuine recovery will start.
Posted on 6 February 2012 by Richard Drax
Aid to India
The Sunday Telegraph reports that the £280 million we give to India annually – via the Department for international Development (DfiD) - is not needed. The Indian Finance Minister has apparently described it as ‘peanuts’. I have long been concerned about the amount we are spending on foreign aid, ring-fenced, if you remember, since the Coalition was created. In the case of India, where the economy is growing at 10 per cent a year, and the Indian space programme has put more than 50 satellites into orbit, it seems completely unnecessary. The Indians are graciously prepared to accept our donations - if we insist - because DfiD officials have told them it would cause ‘grave political embarrassment’ in Britain if they refused. The suggestion that our aid would encourage India to spend £6.3 billion on our Typhoon jets has just been torpedoed by their decision to buy Rafale jets from France, which gives India a mere £19 million in aid a year. Meanwhile, DfiD says 450 million Indians are living on less than 80p a day and they need our help. Surely that’s the responsibility of the Indian government? It’s called priorities and they appear to have got theirs seriously wrong.
Posted on 5 February 2012 by Richard Drax
EU limps on
The obvious is staring us in the face, yet politicians of all colours refuse to see it. The euro is doomed, as is the eurozone. The sooner we start persuading our European partners that there is another way, a common sense way, to save flagging economies, jobs and ultimately sovereignty, the better. And the longer we encourage Germany and France to push on with closer fiscal and political union, the worse the situation will get. Leadership is desperately needed to avoid an economic catastrophe, which will be the result of continuing to pursue a failed policy of one-cap-fits-all. Yes, we should trade with each other, of course we should, and, yes, we should meet to discuss the very big issues facing the world, but each country must retain its total independence and especially its currency. Only the latter will allow soverign nations to meet changing economic times with any sort of flexibility.
Posted on 1 February 2012 by Richard Drax
The Falklands
The new Type 45 destroyer HMS Dauntless is being despatched to the Falklands in March. We're told this deployment is not a reaction to Argentinian sabre-rattling, but of course it is, and it's quite correct to send her. What worries me, though, is what else we have in the locker if the situation deteriorates, and the truth is, not much. Senior former soldiers and sailors have said we could not retake the islands if Argentina invades successfully, and I agree. I can see no so-called allies getting involved in such a conflict, and, with no aircraft carriers, a seaborne operation without appropriate air cover would ultimately fail. As I said in a recent speech - which can be seen on my website - defence is a matter of priorities and we have a solemn duty as a Government to ensure it is maintained. Cutting our armed services in the way we are is a disgrace and I again call on the Government to review the review before it's too late.
Posted on 1 February 2012 by Richard Drax