Thanks to Tom at “Labour and Capital”. He seems to be the only person consistently pushing this issue. There has been a fair amount of justifiable fuss about Private Equity (also hedge funds and venture capital) investors. These investors have been accused of using tax breaks on interest payments to buy companies and saddle them with massive debts. They pay for these debts by sacking staff and attacking the terms and conditions of those they don’t sack. See the GMB campaign over the AA and the T&G over Sainsbury.
There is also the issue of accountability. After decades of hard slog, British companies are finally adopting some good governance practices. We are starting to get transparency and the acceptance that companies should act in a responsible manner (there is a long way to go). However, most PE investors are utterly unaccountable and secretive.
There is also the risk to workers pensions and insurance policies. The TUC's Head of Economic and Social Affairs, Adam Lent, 'The rapid growth of hedge funds and private equity poses real dangers to the stability of the international financial system. There is a real danger that the growth of highly geared investments, coupled with a demand for high short-term returns, is unsustainable and may even be stoking up a speculative bubble.
This should not be an attack on all forms or private equity or venture capitalism. Since many new jobs and even industries in the UK have been created via these types of investments. This is also a global problem which will need a global response.
However, the question I am asking is what can those of us who are employee nominated Pension trustees or representatives (many are trade union appointed) doing to stop our money being used to sack fellow trade unionists, stop tax breaks being used to pay “grotesque” and “ridiculous” bonuses and prevent a possible financial crash?
My own personal blog. UNISON NEC member for Housing Associations & Charities, HA Convenor, London Regional Council Officer & Chair of its Labour Link Committee. Newham Cllr for West Ham Ward, Vice Chair of Local Authority Pension Fund Forum, Pension trustee, Housing & Safety Practitioner. Centre left and proud member of Labour movement family. Strictly no trolls please. Promoted by Luke Place on behalf of J.Gray, Newham Labour Group, St Luke’s Community Centre, E16 1HS.
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1 comment:
Hi John
Good bit on the Beeb website about the Sainsbury's bid
http://www.bbc.co.uk/blogs/thereporters/robertpeston/
Tom
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