Can they stop foreign take-overs?

What a difference an election makes. When Kraft were bidding for Cadbury the government said they were powerless to stop it. They did not propose any legislation to give themselves the power to stop such deals. We know, as they proved with the Digital Economy Bill and the Finance Bill, that they could push unwanted legislation through all stages in a matter of hours when they wanted to. So why didn’t they put something to Parliament about take-overs when it mattered?

There are several possible explanations. The first is they may have been told that Company law measures to block foreign take-overs might not be legal under EU law. Much of this area of work is a power taken by Brussels and given by this government in their legislation. The second is that their new proposals may not prevent a single take-over, so it was best not to put them to an early and real test. The third is, that this idea has been subject to discussion with UNITE, one of its leading advocates, and the politics have only just reached the point where it needs to be announced.

The leaks – which are not being denied and may even be inspired – suggest the policy has two features. The first is to require a two thirds majority to approve a takeover. Maybe that does get round EU law – we will find out. It does not guarantee a block on any given foreign take-over. If the bidder offers a good enough price most shareholders might want to sell out anyway. The second is to stop “hedge funds” voting if they have just recently bought the shares with a view to exploiting the increase in price over the bidding period. In practise I doubt they will be able to single out “hedge funds”. It is more likely they will have to ban any recent buyer of the shares from voting, which could include new shareholders they like. This would include a voting ban on shareholders deliberately buying into the company to help keep it independent. The “White Knight defence” is a well known City practise where sympathetic shareholders buy up shares to thwart an aggressive bidder. Intervening can often have perverse consequences.

There is also discussion of a “public interest” ground for turning down a merger. The Competition authorities always used to have this reserve power. When I was Competition Minister, acting for the Secretary of State, we could invoke this public interest clause in a number of areas if we wished. The irony is that it was Labour who swept away the old and perfectly good Competition Law in order to impose a complete European system on us. Now it appears they regret their European enthusiasm and are thinking of going back to the future.

Promoted by Christine Hill on behalf of John Redwood, both of 30 Rose Street Wokingham RG40 1XU

Going up

As a blogger pointed out, the Input and Output price inflation is going up just as we feared. House prices are also on the rise.

The government may see this as a kind of success, with an election in the offing. The deflation they wrongly feared has not come to pass. Others see it as a sign of how weak the Uk economy has become, with rapid inflation in some assets and prices at a time when output is still very depressed, and when there are more than 5.5 million people of working age without a job.

The Chancellor and the Bank are silent on why this happening, just as the PM was when I asked him about inflation last year when it seemed likely it would go up. Could it be that their lop sided moneypolicy is to blame? Could it be that their policy of expanding the public sector and starving large parts of the private sector of cash is causing this poor performance?

Promoted by Christine Hill on behalf of John Redwood, b oth of 30 Rose Street Wokingham RG40 1XU

Labour cannot find candidates for Wokingham

It is extraordinary that Labour is only contesting six of the twelve Wokingham Council seats on offer in the May 6th Council election. Labour claims to be a national party, and is still the UK governing party. Local Labour campaigners say they are concerned about Wokingham’s problems. Why then do they not put up twelve candidates, so every Labour voter has someone they want to vote for? Doesn’t Labour really care about Wokingham at all?

CAMPAIGN TO ELECT JOHN REDWOOD

CONSERVATIVE CANDIDATE, Wokingham constituency.

About John:

John is a business man by background, who ran industrial and financial companies before becoming an MP. John was MP for Wokingham in the last Parliament, and has been a Minister, Cabinet Minister, Shadow Cabinet Minister and Chairman of the Conservatives Economic Policy Review.

In the last couple of years John has written his daily blog on www.johnredwood.com, keeping people in touch with the economic crisis, other issues and local matters, and proposing solutions to the UK’s ills. He co authored “Freeing Britain to compete”, a study of the policies needed to create higher living standards and a more prosperous economy, and published “After the Credit Crunch – No more boom and bust?”.

He has also been an active campaigner on local issues, ranging from flooding through planning to education.

John Redwood on the 2010 election in Wokingham:

“All the pundits and pollsters agree this General Election offers a genuine choice to voters – do you want five more years of Gordon Brown or do you want to change to a Conservative government?

The polls show it is possible for the Conservatives to win a majority and then to get on with the task of sorting out the economy and the massive debt. In Wokingham many voters will want to help the nation make that crucial decision. If you want a change of government then voting Conservative is the way to bring it about. If you don’t want a change to a Conservative government then any of the other parties will help give you what you want.

As an economic adviser to the Conservative leadership, I am only too well aware of how many things we need to change to create the jobs and the higher living standards people rightly want. If we do not start to control the deficit and debt soon we could end up like Greece, forced by a crisis to slash public spending and forced by the markets to pay much higher interest rates for our borrowing. We need to do more for less throughout the public sector.

We need to cut taxes on earning and saving, to provide the incentives to earn our way out of the mess. Labour’s strategy of more taxes and more regulations will drive business away, limit or destroy jobs, and lower living standards. That’s why Conservatives have proposed cutting National Insurance, freezing Council Tax and cutting Corporation and small business taxes. They also have said that lower tax rates in general help create more prosperity.

We need to strengthen Parliament and our democracy. That is why Conservatives say we need to get powers back from Brussels, give more power to Parliament to challenge and question the government, and give more power of choice to Councils, individuals and families.

We need to raise educational standards, make it more worthwhile to work and get many of those on benefits into jobs. The best spending cut of all will be to cut the amount spent on benefits because more are in paid employment.

I would like to help bring about those changes Wokingham and the rest of the UK need. That is why I am standing for Parliament.”

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Promoted by Christine Hill on behalf of John Redwood, both of 30 Rose Street Wokingham RG40 1XU

Even Labour’s efficiency savings mean fewer jobs

Why can’t Labour and Lib Dems spare us the false allegations and the crocodile tears. Today they claim to have discovered that Tory plans for a more efficient public sector mean fewer public sector jobs. So do Labour plans, if they knew how to implement them and if they were honest about them. The whole point of doing more with less is to employ fewer people to deliver the given service, and to buy fewer items from outside to provide the service.

This does not mean compulsory redunancies.In a 6 million strong public sector workfoce it is likely 300,000 a year will retire or resign for one reason or another. Some, like teachers, nurses and doctors, need replacing. Other posts can be abolished and more efficient weays of working introduced to start to control the costs. It’s scarcely rocket science, or worthy of “Shock, horror” headlines. The aim is a smaller public sector delivering a bigger service where needed, and doing less where it has been pursuing the wasteful, unpopular or needlessly interfering.

The Conservative plans to cut to pay in the public sector in the interests of greater equality should appeal to Lib dems and Labour. It is one of those strange ironies that a Labour government which talks the language of more equality should have presided over such an explosion of top pay in the public sector. Those would be both easy and popular cuts.

Digital laws and the wash up

As feared, the Lords did not seek to prevent the passage into law of the badly drafted and ill thought through Digital Bill I spoke about earlier in the week. Only the Lords could have stopped this Bill, given the determination of Labour to use its majority to put it through.

Some people seem to think that in the wash-up the government cannot get its way. This is only true if the government behaves well, and starts to restrain itself. If a government, which still has a large majority in the Commons, can avoid losing any votes in the Lords, it can still carry its legislation on a much shortened timetable, as we have seen this week.

A more democratic government would have understood the public anger about some of the measures, and understood the wisdom of those of us who urged more debate and less legislation, voting against the government’s steam roller timetable motion.

This site and the election

As from today this site becomes not just www.johnredwood.com but also the regulated site of John Redwood, Conservative Parliamentary candidate for Wokingham.
The main site will continue unchanged, whilst the materials for the Wokingham election will normally appear on the local issues pages. The whole site is being treated as an election expense and will be declared as such. The site includes the imprint “Promoted by Christine Hill on behalf of John Redwood, both at 30 Rose Street Wokingham Berks RG40 1XU”
I am publishing as part of the new compliance regime both my declaration of interests as a candidate, which are the same as my declaration in the old Members register of interests as an MP in the last Parliament, and the latest figures concerning Parliamentary expenses for the last Parliament. These appear on the local pages.
I cease to be an MP, as Parliament is being dissolved and all MPs lose office. Any references to my past as an MP that remain in older stories on this site are there for archival purposes and do not purport to suggest I am still an MP.

Another bad day in the hopeless Parliament

Yesterday the government presented a Business motion to the House which allowed just one hour to “complete” consideration of the Digital Economy Bill, and a mere 3 hours to consider and pass an entirely new 71 Clause Finance Bill. It summed up all that has been wrong for the last five years. It was the final denouement of a government which hates, sidelines, marginalises and trivialises Parliament. This government has undermined Parliament by its actions and its inactions.

I and a few others opposed the government’s Motion. The government moved to close down debate on the shortage of time for debate. We forced a division and voted against, but there were too few of us. We then called another division to try to stop the steamroller on the Finance and Digital Bills, but again we lost by a wide margin. We also wished to salvage the motion to ensure backbench involvement in future timetables for House business, but that was brushed aside by an arrogant government machine. Then we were in to the shortened debates.

I decided to use my share of the little time available to speak against the Finance Bill. It is normal for there to be a short Finance Bill to allow revenue to becollected prior to a May election. It is not normal for there to be a blockbuster 166 page Bill with just three hours for Second Reading,. Committee and Third Reading. In the time available we just managed a short 2nd Reading and the beginnings of a commitee session. I had spoken against the Digital Bill the day before. I will post the Finance speech as usual. The main burden of my comments was to highlight the lack of any enterprise strategy, the failure to reduce tax and bureaucracy on those who work hard and create jobs, at a time when we need hard work and new jobs to fuel the recovery.

So what should we call this miserable Parliament as it limps to a sorry conclusion today? Should it be known as the Bad Parliament, for all the damage it has done to itself and the UK economy? Or as the Bankrupt Parliament, for the huge sums it has spent on banks, the public sector and itself, forcing the country into huge debt? Or the Crashed Parliament, to remidn us of the massive Boom and Bust it helped fuel? Or as the Failed Parliament, for its inability to hold a bad government to account owing to the refusal of Labour MPs to vote for proper Parliamentary scrutiny of most things, and its refusal to see the damage the failure of Parliament was doing to itself and to the country? Or should it just be known as the Hopeless Parliament, the Parliament that gave away yet more powers to the EU, to quangos and anyone in sight, and couldn’t even work out its own expenses? I am opting for Hopeless as the best description, but you may wish to make other suggestions. Please remember to frame them for a family audience!

John Redwood’s contribution to the Digital Economy Bill

Mr. John Redwood (Wokingham) (Con): It is a disgrace that the House is not treated with courtesy by the Government. It is quite wrong that a Bill of such importance and magnitude was not tabled earlier. It is quite wrong that there is an attempt to rush through all parts of the Bill without proper scrutiny and debate.

Not so long ago there was general agreement on both sides of the House that the House had not done a serious enough job of scrutinising legislation and providing the kind of commentary and critique of draft legislation that it should. The House was right to understand that there is a concern out in the country that this Parliament, of all Parliaments that I have had anything to do with, has let down the public by not getting sufficiently involved, and not finding a way of making the Government give it enough time to do the job properly.

We have heard from Members on both sides of the House why we need time to discuss the Bill. There may be quite a lot of agreement about some of the important things in the Bill. I am sure that no one in the House begrudges a great artist or creator of music or words fair return for their labour, but many complicated issues are involved in determining how we secure that return without impeding too much on everyone else’s freedoms. It is difficult to do it in the rather clumsy way that the Government have come up with so far in the relevant early clauses of the Bill.

We need scrutiny not just of the things that cause disagreement across the Chamber-there are several of those, as we heard from Front-Bench speakers on both sides of the House at the opening of the debate. We also need scrutiny of the things that the Chamber largely agrees about, because it is in those areas that it is more likely that mistakes will be made-that the language will be wrong and that the Bill will not carry into effect what the House wishes, because the Bill will have got through without the challenge that we need.

It was for good reason that our predecessors in this place said that there should be a Second Reading of Bills to discuss the principles-“Is it a good idea to have a Bill on this at all?” “Broadly, how do we go about doing it?”-then a little pause to reflect on the Bill, and then a Committee stage, on the Floor of the House for important Bills or upstairs for others. Members of the House most interested in the legislation could go through the Bill line by line, mainly asking the question, “Will this particular phrase, clause or line help us achieve the aim of the Government?”-or the common aim where there is general agreement.
This Government have had 13 years to introduce important legislation on the digital revolution. I cannot believe that any previous Government dared to hold a Second Reading of an extremely important Bill after they had announced the intent to dissolve the House as quickly as possible. It beggars belief that this Government could insult the Commons, and the public we represent, in that way so shortly after it was a matter of common agreement that we needed to do a better job of scrutinising, debating and discussing legislation for the sake of enacting legislation that works.

The legislation has 11 principal areas and themes. The debate in this shortened time available for Second Reading may discuss only three or four of them in detail; most will go unremarked, or will be mentioned en passant by speakers mainly interested in something else, because there is not even proper time for a full Second Reading debate, because there were questions, statements and so on before we got to Second Reading and we are all under time pressures to limit our speeches as a result. Naturally, Members are concentrating on the things that are most difficult or that matter most to them, so those of us concerned enough to be in the Chamber will only be able to discuss some elements. It is quite understandable that, now that an election has been called, some Members feel they have duties elsewhere. If they feel that they are not immediately required for a vote, they may be tidying up their affairs or communicating with their constituents. This is not a good time to be discussing something so technical, difficult and important.

One of the big issues that we have heard about so far relates to the powers that the Secretary of State should take under the legislation and the powers that should be delegated to Ofcom to tackle copyright infringement. The House will know that I am the author of johnredwood.com. Members may know that I do not seek to charge anyone for using that wonderful resource about modern British politics, and they may also know that I have received several offers from people wishing to advertise on my site for a reasonable fee and I have always turned them down because I do not want it to be a commercial site.
Like me, many people see the web as a wonderful means for creating a community of people interested in a subject that matters to them. It can create argument, discussion and debate, and provoke ideas, viewpoints and discussion, which is entirely helpful to the democratic process or whatever interest has led people to set up a site. As has been said, even under this rather crude legislation, there is nothing to stop people such as me continuing to offer a free service without worrying about infringement of copyright. I should be happy for anyone to reproduce anything I have written on the site as long as they do not libel me or lampoon it too much. It is perfectly good for people to use the site; it shows that the site is of interest and of use.

However, there are people who are trying to make a living from their creative work and they naturally want a sensible legal framework that enables them to protect their legitimate intellectual property and to continue to make a living. We know that the internet has brought great good. It has involved many more people in many more activities. It informs people much better and enables them to research much more quickly and easily topics of interest to them. It allows communities to communicate one with another and allows events to be publicised. It brings all sorts of goods to local society. I hope Members share the perception that there is much good in the internet and would not want the legislation to damage in any way the good that the internet can do.

Let us think about the comparison with protecting the copyright of an author who chooses to publish their written words not on the web but in the form of a newspaper or magazine article, or a book. In the past, many of us in the House have written articles or books for which we may have been paid small sums. We have some protection in the copyright under existing copyright laws. The House should remember, however, that there is no comprehensive protection in copyright law for the written word published in those ways. If I publish an article or a book, I am sure that people may lend the book or article to others for free, and I have no right to say, “You must not do this. I demand a royalty every time that book or article is lent to somebody.” We do not go that far. We feel that it is part of a free society to allow people to lend books or articles to their friends, family, neighbours or whoever.

It is also probably the case that, quite often in the furtherance of education, the better articles-one hopes-and the better chapters or sections of books are reproduced on copying machines and used as teaching materials that are provided to pupils and students in schools and universities. I am sure that very often the school or university does not bother to contact the author to seek permission and does not bother to ask the author whether they would like a token payment to allow them to reproduce such material. It would be a pretty odd author who got really hot under the collar about that and started to sue the schools, although they could, because they would understand that such activities are quite helpful to them in building their reputation and name in some ways-again, assuming that their work is not lampooned or completely shredded-and one has to live in a free society and we want people to be educated. We should approach any suggestion that we need tighter regulation of the internet with that in mind. We are not looking for something completely comprehensive. We need to live and let live.
Quite a large number of people outside the House are worried about our rushing through, for example, clauses 10 to 18 tonight-if that is a serious proposition between the two Front-Bench teams-because although if many of those people were challenged they would probably say, “Yes, of course, someone who has sung or written a great song should get some money for its reproduction,” they are very worried that we will criminalise people who are doing very minor things that are quite normal to do with, for example, copies of magazines and newspapers, that we will get the wrong people, or that the person who has a series of internet facilities in an organisation will be picked on when they cannot control the use of such material or cannot even establish who used it or whether it was a persistent offence.

A lot of this could be sorted out if we had time to go into the detail and if we had time to examine the language that the Government propose, to discover whether they have got the balance right. All hon. Members would agree, from whichever direction they approach this argument, that we need a balance. No one says that there should be no copyright at all for anything. No one would take the opposite extreme and say that, every time that anyone says, does, sings or whatever anything, that creates an important copyright that they should be able to defend against everyone. That would be ludicrous, and it would greatly extend our traditional copyright law on newspapers and books. We need a workable compromise.
I will not have time to consider these clauses in any detail, I am afraid, because my time will be artificially restricted by the guillotine and the proposals for today, although they are wide-ranging enabling clauses. If people are worried, such clauses lead to greater suspicion. We are invited to believe that, under the orders that will implement these wide-ranging clauses, provisions will be made that will produce such a judicious balance. We are being asked to buy a pig in a poke, or to sign a rushed cheque against an invoice that we have not been sent. That is not good practice. We need more from Ministers to persuade us that they have thought through these complicated issues about balance and that they have in mind practical orders that would not make unreasonable intrusions into the freedom of those who provide such web and internet services and would not restrict the rather minor examples of freesharing that are common in a free society and that one needs to be able to enjoy.

Richard Younger-Ross (Teignbridge) (LD): Does the right hon. Gentleman accept that any draft orders under the Bill, if it goes forward, should be amendable? My hon. Friend the Member for Bath (Mr. Foster) intends to make that proposal, and we hope that the Secretary of State will take it on board.

Mr. Redwood: That would be most unusual. I have served on a good many order-making Committees in my time, and one of the most unsatisfactory things is that it is a take-it-or-leave-it process and the Government always say to vote to take it. So we can argue an extremely fine case and say that sentence 3 should be rephrased in the Government’s interest, and they will still do absolutely nothing about it because the junior Minister does not have the power or the interest and intends to ram the order through in its current form. That naturally leads to suspicion, most obviously among hon. Members, but also outside the House. If we leave all the big judgment calls on the censorship of the web-this is really about censorship-to a set of orders that we cannot see and do not know about, it is asking too much, this close to a general election. This is extremely sloppy work, which we all find very worrying.

I am glad that my hon. Friends who sit on the Front Bench find some things in the Bill with which they profoundly disagree. I am tempted to say that the Government should take the whole thing back and do their homework properly, and it would be for the new Government to sort all this out when they are chosen by the British people on 6 May, but I understand that the mood of the House is to try to reach some kind of accommodation. I urge my hon. Friends to be extremely firm, because we have absolutely no need to take half-baked and ill thought-out legislation from the Government this late in the day, when it is their fault that we are in this position, as they had five years and a thumping great majority to put any sensible proposals through the House that could have come to the relief of the creative industries. They chose not to do that, and they are now attempting to bounce us at 5 minutes after midnight, when it is already well known that the House is closing down with the current management and all will be put out to the electorate to decide who should run it in the future.

My hon. Friend the Member for South-West Surrey (Mr. Hunt), who initiated the debate for the Opposition, very wisely said that the Government are showing their true socialist colours and that all they ever believe in is more taxes, and there is more tax in this legislation, more regulation, and there is tons more regulation for Ofcom of a kind to be specified later in orders, and more subsidy, when all else fails or when they are trying to do something that the market and the general public are not sufficiently interested in for it to be a commercial proposition. The Bill has all three elements. That is surely another reason why my hon. Friends who sit on the Front Bench should be extremely sceptical about allowing great chunks of the legislation through, when there is concern outside and a lack of precision in the legislation, when these unwelcome features will intrude into an area of business and social life that is a great success in this country under the current regime, which is perhaps a little chaotic, and when we should be proud of so much achievement in the world of the web and in the creative industries that we see outside.

Unfortunately, my time is up. I wanted to speak about half a dozen other important elements of the Bill, but I am not allowed to do so, only because the Government, once again, so hate the House of Commons that they will not give us time to consider these measures properly.

Democracy day?

On the ropes over taxes and the deficits, Mr Brown is trying to change the subject today. He wants to talk about a new democracy.

He does so without a hint of irony and without a moment for self reflection. Yesterday he could have instructed the Ministers in his government to try a little democracy for a change in the Commons. Instead they opted for their well tried and tested steam roller approach to all other opinions but their own.

The Digital Economy Bill had been 13 years in the making. Apparently over those 13 years they had discovered how important the creative industries are, and how they need new regulation. The government against all precedents decided to hold a second reading of a major new bill after announcing the end of the Parliament!

Worse than that, they time limited debate with a vicious timetable. We could have stayed later and spent more time on the Bill last night, but that did not suit Labour. Instead those of us who did get to speak were time limited. Today all of one hour will be given over the committee stage! A proper committee stage needs a minimum of 20 hours. The bill in its current form is ill thought through, badly drafted, and will have unpredictable consequences. Last nigth when I sought to expose one of the problems with it, the Minister seemed unaware of any of the impact the Bill might have and was left defending some other Bill in his imagination which he had not presented to the House.

Democracy is in your heart. A democrat respects the opinions of others, considers them carefully, and allows full debate to expose the different views. This government has always done the opposite – it has scorn for its opponents views, seeks to misrepresent or stifle them, usually kicks the person and not the ball and allows as little debate as possible. You should judge this goverment by its actions, not by its fine words on democratic reform. The method of handling the Digital economy Bill sums up all that is bad in this government’s approach. They are not democrats in their hearts, when it comes to handling other people’s opinions.