Hans Blix: How do we stop Iran getting the bomb?

A preview of our exclusive essay by the former chief UN weapons inspector.

In this week's New Statesman cover story, the former chief UN weapons inspector and ex-head of the International Atomic Energy Agency Hans Blix offers a diplomatic alternative to military action against Iran - and warns that any such attack by the west would be illegal and catastrophic:

If Iran were to be bombed, it would be another action in disregard of the UN Charter. There would be no authorisation by the Security Council. Iran has not attacked anybody and despite Mahmoud Ahmadinejad's wild, populist declarations that Israel should be wiped off the map there is no imminent Iranian threat that could be invoked to justify pre-emptive action.

Blix says he does not believe that the Iranian regime is trying to build or acquire nuclear weapons:

It is possible - but is denied by Iran and not evident to me - that there is a determination to make a nuclear weapon.

The former director of the IAEA points out that the much-discussed report on Iran released by the UN's nuclear watchdog in November 2011 "did not . . . conclude that Iran was making a weapon or had taken a decision to make one". And he issues a stark warning on Iran to the agency's current head:

In my view, the agency should not . . . draw conclusions from information where the supplier is not ready also to show evidence. Both Mohamed ElBaradei and I were careful on this point and I hope the present director general of the IAEA, Yukiya Amano, follows that line. The agency should not risk its own credibility by relying on data that it cannot verify fully.

Blix says "bombing Iranian nuclear installations may be a path to disaster rather than to a solution" and condemns the "outrageous, gangster-style" killing of Iranian scientists. He writes:

Iranian leaders are not going to sit quietly and twiddle their thumbs . . . A war in the Gulf and skyrocketing of oil and gas prices are not exactly what a financially troubled world needs right now. Furthermore, not all relevant installations in Iran would be destroyed. Some may not be known. The capacity and know-how to produce more centrifuges will survive and after armed attacks the Iranian government, which many now hate, may get broad support in a nation feeling humiliated by the attack. If there was not already a decision to go for a nuclear weapon it would then be taken.

The former chief UN weapons inspector in Iraq calls for the establishment of a "nuclear-weapon-free zone" in the Middle East as a solution to the impasse over Iran:

To many, the idea of an agreement between the parties in the Middle East - including Israel and Iran - to renounce not only the possession, acquisition or development of weapons of mass destruction, but also the means of their production, might seem very remote. It does not seem far-fetched to me.

It would, to be sure, call for many difficult arrangements, including verification going beyond IAEA safeguards, as well as outside security guarantees and assurances of supply of nuclear fuel for civilian reactors. It would require that Israel give up its nuclear weapons, stocks of fissile material and capability to produce enriched uranium or plutonium. It would require Iran to do away with its enrichment plants and a number of other installations. All states in the zone would agree between themselves not to acquire or develop capabilities for the enrichment of uranium or production of plutonium.

And he explains why this arrangement would appeal to all sides.

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Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/