Labour's decision to lend Rover Cars money in the run-up to last year's General Election has been criticised by the National Audit Office. The NAO believes that the chances of £5.2m of taxpayers' money being repaid are "remote".
Tony Blair has defended the emergency funding of Rover:
"We were doing everything we can, and should have done everything we can, to preserve as many jobs at Rover as possible... No-one would have forgiven us if we hadn't gone every inch of the way to try and save the jobs. If we had refused to do that at the time, people would have been complaining bitterly."
Shadow Trade & Industry Secretary Alan Duncan is furious. Interviewed on this morning's Today programme he said that Labour only made the loan to keep the issue from spoiling Labour's polling day chances. He suggested that Labour would not have made the highly contentious loan if it had not been an election time. MG Rover Cars operated in the electoral battleground of the West Midlands. Mr Duncan said that Labour had used the money for political purposes and should now repay it. The Rover loan is one of the more exotic ways in which Labour has allegedly bought client voters with its supplicant state strategy.
Also on Today, John Humphreys quizzed Lord Falconer about the fact that every person who has donated £1m to Labour has ended up in the Lords. Lord Falconer was unable to defend the situation - only suggesting that the Tories behaved similarly. ConservativeHome believes that a cap of something like £100,000 should be imposed on annual donations to a political party from individuals and trade unions. It would put an end to such cash-for-peerage allegations and force the political parties to seek broad support from the whole population.
I've long held the view that history will judge this government to be one of the most corrupt and un-democratic governments in modern British history. When the Auto-biographies and diaries start to roll out in years to come I suspect we will be aghast.
Posted by: Frank Young | March 10, 2006 at 09:58
The cash for peerages scandal stinks, particularly given Labour's cull of hereditary peers, who, because they were there by accident of birth rather than open chequebook were truly independent.
The Rover "scandal" on the other hand, I don't think will resonate as much with the public. I think most people were sad to see Rover's demise. The demise was almost inevitable, but to criticise the government for provides an extra week for last ditch attempts to save the company will appear a little mean-spirited to the public I feel.
Posted by: Adrian Owens | March 10, 2006 at 10:18
Why have the Conservatives not tried to make any political capital out of this? Have we skeletons in the cupboard or are we still so shocked from the events between '92-'97?
This is an area where I believe Cameron must be very hard indeed,both on the Labour party and our own.Politicians caught lying or with their hands in the till should have their careers swiftly ended.I hope that's not too naive a statement but I think restoring faith in politicians and politics is incredibly important and that adopting a tough stance will have more effect on the public than any recommendations from the Power report.
Posted by: malcolm | March 10, 2006 at 10:24
Quite right, Malcolm. Cameron should make the point that this Government in particular is very happy for politicians to operate according to a lax unpoliced code of ethics which it would not tolerate for five minutes if it applied to company directors or professionals.
Posted by: Michael McGowan | March 10, 2006 at 10:41
I think you're right, Adrian. There's little mileage in Alan Duncan's Rover attack.
Posted by: Editor | March 10, 2006 at 10:49
"but to criticise the government for provides an extra week for last ditch attempts to save the company will appear a little mean-spirited to the public I feel."
It all depends on whether the government believed that there was still a chance of a deal. If a document emerges that shows the government was advised that a rescue deal was beyond hope, we can shout 'sleaze'. However, if they can claim to have had a genuine motive, Adrian is right - £5 million is peanuts in governemnt-spending and the public will be sympathetic. I hope we've got some proof for our punches.
Posted by: Mark Fulford | March 10, 2006 at 10:52
"this Government in particular is very happy for politicians to operate according to a lax unpoliced code of ethics which it would not tolerate for five minutes if it applied to company directors or professionals."
Not just directors and professionals: parish and local councillors are policed harder!
Posted by: Mark Fulford | March 10, 2006 at 10:57
What's on at the cinema this weekend, William?
A very interesting selection which should appeal to all tastes.
Hey, Dude, Where's My Peerage?
Modern comedy of bad manners. Chai's given Tony a nice present, and now he's expecting something back, but well, you know what these New Labour types are like for remembering about where money has come from. Starring: SIR Ben Kingsley as Chai Patel, Dale Winton as Tony Blair, Stephen Fry as Lord Gold Stick In Waiting.
CH verdict: Enjoy a good laugh - this time it isn't at your expense.
Groundhog Day
Whimsical fantasy. 45 million people wake up and discover they're reliving the Major Govmt all over again. Starring: Bill Murray as Tony Blair, John Prescott as the Groundhog.
CH verdict: you'll watch it again and again and again...
Lock, Stock And Two Stinking Hypocrites
Mockney crime caper. Julio in Milan thinks Silvio has given David £300,000, but David says he got it from Diego, only Diego says he was in jail at the time. Will the lads be able to sort it out before Tessa learns the truth? Starring: Jason Statham as David Mills, Benecio del Toro as the Italian Prosecutor, Brad Pitt as Tony Blair, Mike Reid as Sir Philip Mawer, Vinnie Jones as Lord Falconer
CH verdict: hangs together like Madonna's marriage.
Two Weeks Notice
Romantic comedy. Tony's a successful international businessman building a New Britain and he desperately wants to keep Tessa as his trusted right-hand adviser. Actually, Tessa wants to stay, too - but how long before they're forced apart? Starring: Hugh Grant as Tony Blair, Sandra Bollocks as Tessa Jowell.
CH verdict: bring a box of Kleenex
Who Framed Roger Helmer?
Slow-moving farce. Honest cop Andrew Woodman interviews a series of comedy cartoon characters (Sir Tim Kirkhope, Edward Macmillan-Scott, Hans-Gerd Piffling) to find out why a Conservative MEP isn't allowed to be a Conservative MEP.
CH verdict: the sequel will be even more ridiculous
Groundhog Day
Whimsical fantasy. 45 million people wake up and discover they're reliving the Major Govmt all over again. Starring: Bill Murray as Tony Blair, John Prescott as the Groundhog.
CH verdict: you'll watch it again and again and again...
Posted by: William Norton | March 10, 2006 at 11:10
Do you want a regular column, William? You're brilliant!
Posted by: Editor | March 10, 2006 at 11:25
William one you missed
In production: Gordona's Wedding?
Less attractive best friend Gordona Brown has always been the bridesmaid at her best friends weddings. Antonia has told her mates that she's thinking of breaking up with her beau, Mr Britain, who Gordona has not so secretly fancied for many years...
However Gordona finds the path to true love is never smooth as Antonia just can't take the final step and her other friends keep getting into awful scrapes. Then a younger and better looking rival appears on the scene.
Can Gordona get her beau or will her friends behaviour drive Mr Britain into her rivals arms?
A Mills & Blunkett Romance
Posted by: Ted | March 10, 2006 at 11:26
As someone who helped in Birmingham, Hall Green in the last election, I well recall the impromptu visit by Blair and Brown to the T&G in Birmingham, complete with their fake concern for the Longbridge workforce and the problems facing the West Midlands economy. Eddie Hughes, our excellent candidate in Hall Green would have made a damn fine constituency M.P. Who knows what effect this £6m "votes bribe" had on the contests in the key West Midlands marginals, but I am sure the swings away from Labour would have been greater than what they were.
The government's role in the whole MG Rover "scandal" needs to be thoroughly examined. I am simply not convinced that the DTI's role in the takeover by the Phoenix consortium was above board. It will be the responsibility of the next Conservative government to conduct a full enquiry into the way a governing party deceived a workforce into believing that their future was bright. The Alchemy proposal was a viable one and would have meant that a small volume niche car maker would still be operating from part of the Longbridge site today.
Labour's elected representatives in the West Midlands had a responsibility to protect the manufacturing base of the region and should have had the vision to explore the various paths of economic diversification that were open at that time. The most sickening aspect of this whole tawdry episode is that people like Richard Burden, M.P for Birmingham Northfield, are now criticising the region's dependence on MG Rover and advocating a more diverse and sustainable economy.
The whole thing stinks...in my opinion.
Posted by: Derek Johnson | March 10, 2006 at 11:41
I echo the editors comments. Let's see William in a regular column.
Never thought I'd see myself described as an honest cop!!
Posted by: Andrew Woodman | March 10, 2006 at 11:51
"Do you want a regular column, William? You're brilliant!"
That is an excellent idea. William Norton, I salute you!
Posted by: Daniel Vince-Archer | March 10, 2006 at 12:16
See the excellent Jeff Randall hatchet job on Labour's role in MG Rover in the Telegraph business
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/03/10/ccjeff10.xml&menuId=242&sSheet=/money/2006/03/10/ixcoms.html
Posted by: lambo | March 10, 2006 at 13:08
According to the BBC the Italian prosecutors have announced that they intend to ask a judge to put Mills & Berlusconi on Trial.
Posted by: Simon C | March 10, 2006 at 13:13
Another one William missed;
MING LEAR
A tragicomedy set in the Scottish Highlands.
Frail clan chief Ming can't stop his relatives squabbling over his inheritance. Some of his closest henchmen are in disgrace after being less than straight. Can Ming control his crazy clan ? Can he stop himself going mad ? Can the Fool stay dry ?
A new leadership farce from the people who brought you 'Whisky Galore'.
Starring Alistair Sim as Ming, Shirley Williams as Cordelia, Martin Clunes as the Fool.
Posted by: johnC | March 10, 2006 at 13:34
Whilst Alan Duncan is right to attack the then DTI secretary for bunging £5m to a bankrupt body, its nothing compared to the £14bn the Prime Minister gifted in December to a body that's not produced signed accounts for 11 years.
Posted by: lambo | March 10, 2006 at 13:34
Are we ofering "Tony" awards for all this sleaze? We contributed to the "100 best sleaze moments" for home.com's site last week. A Tony award should go to him for the total mess that has been made of the Peerage nominations which the Times leaked on November 8th last year and which has prevented some very good people indeed - notably John Taylor - from joining the Lords benches.
I could think of some good film scripts too and like the ones subitted.
Posted by: David Surtees | March 10, 2006 at 14:33
Perhaps a separate 'Satire' blog would be in order, Editor?
Posted by: Daniel Vince-Archer | March 10, 2006 at 16:53
A lesser known film...
Blunkett and MacClean
Dave Blunkett and MacClean Blair, two men from different ends of the social spectrum in 18th-century England, enter a gentlemen's agreement: They decide to rid the aristocrats of their belongings. Things get a little bit muddled for them when Blunkett falls in love with a society lady...
Posted by: Ted | March 10, 2006 at 19:27
I think our bloggers should be given jobs writing sitcoms. Would be much funnier than the ones we are obliged to watch/fall asleep over.
Posted by: Annabel Herriott | March 10, 2006 at 20:10