The real reason the UK fears an EU Tobin tax

French farmers are set fair to do well out of an European Tobin tax.

Sometime today, in a conference room in Berlin, David Cameron will indulge in a certain amount of spleen venting. No doubt a little tapping pointedly on the table will take place. Who knows, maybe he'll even advise his interlocutor to "listen to the Doctor dear".

And then with a bit of luck, Angela Merkel, bedecked in Lincoln Green, will lean over the table, and whisper "But David. I thought we were all in this together?"

What will have brought all this unpleasantness to pass? Why it's that new favourite wheeze of German and French politicians: the Tobin Tax.

Now, the Tobin tax is that strangest of beasts, a popular levy. One that the public would welcome with open arms. So how come we have the German Chancellor offering to take from the rich to give to the poor, while Cameron, Osborne, Balls and Cable all scramble to play the Sheriff of Nottingham, shouting "no, no, no"?

When all three major parties pass up the opportunity of a populist open goal, you know there must be more to this than meets the eye. And there is.

Firstly - and it would be easy to miss this -- the Lib Dems, Tories and Labour are all actually in favour of the Tobin tax. Everyone thinks it's a grand plan. Just not right now. And not in the form the Merkozy axis has proposed.

"Give me a Tobin tax and fiscal continence. But not yet," they are saying, in a St-Augustine-sort-of-a way.

So what's the problem?

Well the financial implications to London have been extensively written about already.

But there's another issue: French farmers.

No, really.

Of course, it's not just Normandy cheesemakers and the like. It's every other thing the EU spends money on -- though with large parts of the total EU budget going on the Common Agricultural Policy, French farmers are set fair to do well out of an EU wide Tobin tax.

How come? Because as things stand, revenue raised from The City of London would go, not to the Treasury, but to Brussels. You can write your own Daily Mail headlines, can't you? I expect Paul Dacre already has.

And that's the nub of the problem. With 70 per cent of its potential revenue coming from the UK, even the most pro-European British politicians fear that the Tobin tax, excellent idea though it is, may prove rather less popular with the British public when they see what the money is being spent on.

Because given the state of the Eurozone, Angela Merkel knows we're all in this together. But some of us are in it rather more than others.

 

Richard Morris blogs at A View From Ham Common, named Best New Blog at the 2011 Lib Dem Conference.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.