Tuesday 11 November 2008
For immediate use
Tories making headlines on the hoof – McNulty
Tony McNulty MP, Labour’s Employment Minister, responding to the Tory announcement on unemployment said: “This is desperate stuff from the Tories, who continue to scrabble around trying to find a coherent economic policy.
“There is no way they can get 350,000 new jobs out of these proposals. There are too many restrictions being applied, the incentive is too small and many of these ‘new’ jobs will simply displace other people seeking work.
“In addition, the Conservatives just cannot pay for this tax cut – it is misleading of Cameron to say he can pay for getting the short-term unemployed back into work by using figures of savings you would make from the long-term unemployed.
“Osborne’s judgment is wrong yet again. They are making headlines on the hoof and they will be found out. “They need to make their sums add up – particularly at such a difficult time for the global economy.”
1. Their figures on how many jobs would be created are complete fantasy. The Tory plan assumes that an employer would create a new job for someone unemployed for more than a year for just £2500. The Tories have failed to take account of the displacement of workers who would have gotten jobs anyway. Currently 60% of people come off job seekers allowance within three months – this number would drop dramatically under Conservative proposals as employers would be incentivised to overlook people who have been out of work for 13 weeks or less.
UPDATE : Some bloggers copy party press releases, some blogs are copied by party press offices… CCHQ at 10.38 sent out a press release quoting McNulty’s above November attack on what is now government policy. Wonder where they got that idea?
Hat-tip : Bloomberg
UPDATE :Am particularly impressed with the insight of Edmund Conway, the Telegraph’s economics editor, with the base rate now at 1.5% he sagely tells us “Interest rates are now nearing their bottom”. Well spotted Ed.
Why has it been that at every point since 1997 faced with the Asian crisis, the IT collapse, a stock exchange crash, an American recession, last year a house price bubble, this year rising world oil prices, why has it been that at every point since 1997 Britain uniquely has continued to grow?
In any other decade, a house price bubble would have pushed Britain from boom to bust….
I tell you, it is because with Bank of England independence, cutting debt, fiscal discipline and the New Deal this Labour government has shown the strength to take the tough long-term decisions, that inflation is low, interest rates are low, growth has been sustained in every year, and we are closer than ever to the goal which drives us forward: the goal of full employment for our generation.
Labour, the natural party for economic strength in our country today.
The hubris and the lies – fiscal discipline is a joke, Gordon has presided over fiscal incontinence on an unprecedented scale, the too low interest rates because he excluded house prices from inflation targeting will prove to have been the key determinant of Gordon’s bubble. Inflation was not so low if you included house prices. Gordon can’t blame that on anyone else, it wasn’t an American finance minister who made that policy choice…
UPDATE : Unemployment is now higher than when Labour came into office. It is a fact that unemployment has always ended up higher when Labour is voted out than when it is voted in. Just as every Labour government has ended in financial crisis.
He might also have added that because we are so over-indebted, it will be that much more difficult to recover economic growth.Via Paul Waugh
Kampeter put the boot into Crash Gordon: “Peer Steinbrück’s comments have nothing whatsoever to do with internal German politics as Prime Minister Brown has suggested. In questioning the British Government’s approach, Peer Steinbrück is exactly expressing the views of the German Grand Coalition. After years of lecturing us on how we need to share in the gains of uncontrolled financial markets, the Labour politicians can’t now expect us to share in it’s losses. The tremendous amount of debt being offered by Britain shows a complete failure of Labour policy.”
Part 7 — Miscellaneous
Section 6 of the Bank Charter Act 1844 (Bank to produce weekly account) shall cease to have effect.
And be it enacted, That an Account of the Amount of Bank of England Notes issued by the Issue Department of the Bank of England, and of Gold Coin and of Gold and Silver Bullion respectively, and of Securities in the said Issue Department, and also an Account of the Capital Stock, and the Deposits, and of the Money and Securities belonging to the said Governor and Company in the Banking Department of the Bank of England, on some Day in every Week to be fixed by the Commissioners of Stamps and Taxes, shall be transmitted by the said Governor and Company weekly to the said Commissioners in the Form prescribed in the Schedule hereto annexed marked (A.), and shall be published….