the people

Silent Majority Speaks

Rescuing Democracy in the United Kingdom from our current Elected Dictatorship

Pensions scandal hits Brown leadership bid

Spin, not face-to-face confrontations with the voters, is the Government's chosen method of communication. Ordinary people are dangerous. Ordinary people might ask a question which throws a politician 'off message'; the Cabinet member might reveal himself or herself to be a human being like us, and not a programmed android. Worse still, he or she might tell the truth.

Ann Leslie - Daily Mail, September 16, 2004

Blair wants to leave his mark on history - looks more like a stain to me.

Peter Thorndyke, Diss, Norfolk - Daily Mail, May 23, 2005

I know I'm me - why do I need an ID card?

"Sorry, officers, I don't have an ID card. I never applied for one. It seemed a bit steep at 300 quid. I do have my free passport, my driving licence and my London freedom travel pass, each with my photograph. I have my NHS medical card, with its lengthy number, given me at birth, my RAF service book with my Armed Forces number, and a chit authorising me to wear a few gongs -including a General Service Medal with Malaya bar, for fighting communist terrorists on behalf of my country, or so they told me.

"I've also got various credit cards and store cards, all with my signature on the back, generally good for buying the everyday requrements for life as well as the odd luxury. If you decide to arrest me, I suppose I'll have to be photographed and given another number, besides my PINs.

"I'm afraid I haven't got a pension book; it was taken away."

"By thieves, sir?"

"No ... well, not exactly. By the Government. By the way, may I see your warrant cards please, gentlemen?"

Oh dear, they've disappeared. E. Harry Gumer, Romford, ESSEX - Daily Mail, June 1, 2005

NO means NO

When does NO mean MAYBE? When it's not the answer the EU wants. With the courageous French NON resounding in their ears, shabby, undemocratic self-interested leaders of Europe propose ignoring the part of their precious constitution that requires ratification by all members and continuing without one of the biggest founder members to prevent derailing the gravy train.

As in Ireland, they refuse to accept any NO votes, ignoring the will of the people, and re-stage votes until they can engineer the 'correct' answer. Sadly, Foreign Secretary Jack Straw dances to their tune like a puppet on a string. With tactics such as these, how can anyone really believe the EU has our interests at heart. Letter from Steve Penny, Kingsnorth, Kent - Daily Mail, June1, 2005

Surely the French result makes the £1million the EU recently spent on a treaty signing ceremony seem a trifle premature and extravagant. Letter from Keith Wiseman, Bury, Lancs. - Daily Mail, June1, 2005

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WWW silentmajorityspeaks.com

Britain has traditionally been one of the biggest net contributors to the EU because we do not get as much money back from Brussels in farm and regional subsidies as our rivals.

According to Treasury figures, between 1995-2002, Britain's average contribution taking the rebate into account, was £2.6billion, or £43.55 per head of population.

The French - the biggest recipient of farm subsidies - contributed £1billion a year or £16.08 per head of their population.

Tony Blair should know that respect comes by example - from the top. If a country's leader has no respect for the rule of international law and no respect for the truth, how can he expect anyone to have respect. Letter from P.J.Atkinson, Ashford, Kent - Daily Mail, January 12, 2006

The Chancellor's single greatest act of vandalism in almost nine years in office has been his wanton destruction of Britain's private retirement industry. By slapping a massive tax on pension funds, now worth £7.3billion a year, he has helped to turn the best private retirement industry in Europe into a basket-case in perpetual crisis. Together with the adoption of European accounting rules - which make it much riskier to operate a company pension scheme - hundreds of firms have shut their final salary plans to new employees and slashed benefits to existing staff. From Allister Heath: "I've seen the future and its grey" in THE SPECTATOR - April 15, 2006

Nine years ago the British people were sold a fantasy of clean and competent government of principle and honesty. Its shiny wrappings stripped away, the product now reveals its true nature: Personal greed, arrogance, incompetence, shamelessness, rash warmongering and an inability to accept - as is clear to almost everyone else - that it is time to go. Editorial - The Mail on Sunday, May 28, 2006

April 2, 2007 (1403 days since war ended)

Death Toll: 3252 US - 135 UK - >650,000? civilians - 25 media

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STOP PRESS

Pensions scandal hits Brown leadership bid

Brown cannot claim not to be told of risks to pensions

The unkindest cut of them all

Commentary by Alex Brummer, City Editor - Daily Mail April 2, 2007

Finally we know the truth. Gordon Brown was warned by Treasury experts of the effect of removing the tax relief for pension funds before he delivered his first budget in June 1997. But the Chancellor pressed ahead regardless despite warnings of a 'big hole' in private pensions and serious risks to the stability of the system.

The decision by Brown and his then top adviser Ed Balls (now a Treasury minister) has been even more far-reaching than officials thought. There has been a wholesale retreat from 'final salary' pension schemes, the gold standard of retirement provision, leaving millions worse off.

Just as damaging is the massive gulf that has opened up between public sector pensions and those in the wealth-crating part of the economy. Best estimates by actuaries who monitor the retirement industry, suggest that Brown's decision has cost company pensions more than £100billion. It is the cost of funding this shortfall which has led to the flight from final salary pensions.

The Treasury's own advice to the Chancellor in 1997 showed that final salary schemes, which offered employees a retirement income related to earnings during their working life, covered 90% of the 11 million workforce. Ten years on, only just over a third of firms offer final salary schemes. Some of the biggest, including Unilever, Marks and Spencer and ITV, have abandoned them for new workers. Others, like W H Smith, are seeking to transfer all workers out of a final salary scheme.

Ed Balls, on behalf of the Chancellor, has sought to exonerate his master by arguing the £250billion decline in stock market values, after the dotcom bubble burst, is the real factor behind the crisis. Clearly, it played a part, as have changes in the mortality tables which show people living longer.

But what Balls fails to mention is that Treasury background papers warned that £75billion could be knocked off the value of corporate pension funds. And the recovery in the stock market means any shortfall due to volatility of markets has been made up. Despite this, the independent Pensions Regulator David Norgrove believes the deficit is still in the order of £100billion.

One of the more disturbing aspects of the Freedom of Information Act disclosures is that a Labour Chancellor found it acceptable that people who would be saving most of their lives for a pension would receive less than they had been promised. Even more horrifying was the recognition by the Treasury that because of the post-Maxwell scandal reforms, which include a minimum funding requirement to show pension funds were solvent, some poorly-funded schemes might be forced out of business.

This became a terrifying reality. Pensioners in dozens of schemes, representing up to 125,000 workers, have lost out because their schemes were wound up before the government created a safety net, the Pensions Protection Fund. They have been thrown back on the government-backed Financial Assistance Scheme which is still underfunded and pays inferior benefits, despite promises by Brown in his most recent Budget.

The virtual collapse of final salary pensions has pushed many employees into inferior 'money purchase' schemes, were there are no guarantees for the saver. Moreover, the government had to set up the 'Pensions Commission', headed by former CBI chief Adair turner, which proposed a National Pensions Savings Scheme for all those employees who find themselves without provision.

Because the suggested employer contribution to such schemes is less than that paid in by some companies, it offers firms the chance to trade down.

Perhaps the greatest catastrophe arising from Brown's 1997 pension tax is the divide it has created between workers in the public service and the rest. While private schemes were battered, the benefits of a final salary scheme, including full inflation-proofing, were left for most state employees. The cost of this promise is put at between £700billion and £960billion.

Not only have the pension expectations of those in the wealth-creating sector been destroyed, but this group is being asked to subsidise ever more generous retirements for bloated public payrolls.

This is the unkindest cut of all and one which will forever tarnish Brown's reputation as a great financial reformer.

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