TPA demands the Government move to protect taxpayers' money

The TaxPayers' Alliance (TPA) today criticised the Government for using taxpayers' money as an easy way out, and urged them to explore other solutions that would limit the amount of our money at risk. With taxpayers' money on the line, the TPA demands guarantees that our money will not be wasted or mis-spent. Now the Government has opted for the £50 billion injection plan, they must also consider big interest rate cuts, suspending mark to market regulations and making deposit protection more credible in order to limit the need for banks to use taxpayers' money.

Matthew Elliott, Chief Executive of the TaxPayers’ Alliance, said:

“The Government is using taxpayers’ money as an easy way out, and haven't fully explored other options that don't put £50 billion of our hard-earned cash on the line. With ordinary taxpayers' money at stake, they must put mechanisms in place to ensure that the money isn’t frittered away on excessive bonuses and to make sure that it is not wasted. The Government must now explore other options to reduce the amount of taxpayers' money the banks need, including making deposit protection more credible, suspending mark to market regulations and cutting interest rates. The Government say they have the interests of hard-working taxpayers at heart, now they need to prove it."

Comments

[David Phipps]

Sir,

We are unable to suspend 'mark to market'. As has been pointed out on EUReferndum:

The particular rules are implemented variously by Directive 2006/49/EC of 14 June 2006 "on the capital adequacy of investment firms and credit institutions", together with Directive 2006/48/EC, augmented by Commission Regulations made under the aegis of Council and European Parliament Regulation (EC) No 1606/2002, implementing IFRS agreed in principle at Basel II, as promulgated by the International Accounting Standards Board.

Therefore, WE CANNOT CHANGE THEM. The Financial Services Authority cannot announce "that it is prepared to suspend them". It has no authority to do so and, furthermore, as we saw yesterday, the EU has decided not to change or suspend them.

Kind regards,

David Phipps

[Matthew Sinclair]

David,

I don't think that just because a policy has been handled by the EU we should treat it as a given. There is a need for the Government to openly confront the EU on this issue. There is a chance that could secure change and, if it doesn't, it will make it very clear to the British people that they are paying a high price for the EU's inflexibility.

Matt Sinclair

[Martin Thornhill]

As an aside, although government cannot repeal EU legistation unilaterally - or even selectively - the UK Parliament can. Under UK constitutional law, no Parliament can bind a future Parliament. Parliament is the supreme authority in the land, able to make, unmake and amend any legislation it chooses.

So if Parliament wants out of Europe, it can simply relieve government of its European obligations.

Job done.