Gordon Brown has pledged to "cut red tape" for at least the third time this year, according to the Telegraph. This might seem a strange thing to criticise on pickinglosers, but we do so, not because it would be a bad idea, but because we don't believe he even knows what that means.
When you look at the detail of the story, what he has actually done is to ask the FSA to cut red tape by 25%:
- How does one quantify "red tape cuts"? In what units is this measured? It's a popular concept, borrowed from Australia I believe, but utterly meaningless. "88.2% of statistics...."
- Why only the financial services sector? Does the rest of business (or life in general) not count? The Telegraph reports that "the Chancellor will also say he wants the Department of Trade and Industry to focus on the global promotion of the financial services sector, and in particular the City of London." Can you get a much clearer case of government preferential treatment? And do we believe foreigners are going to use the City because the DTI goes around promoting them, or because they gain a competitive advantage from doing so? How many foreign businessmen in whom the City would be interested do we think are not aware of the City and its services already? Enough to justify regular trips abroad for DTI ministers and civil servants, apparently.
Apparently Ed Balls likes to be called the "City Minister". I didn't know they were allowed to make up their own titles and roles. And how disturbing is it that the man responsible for the detail of economic policy that affects all of us, designs it with particular consideration of how it affects the City. Is it inconceivable that there may be circumstances where the interests of the City and of the broader economy (or industry) are not aligned? If so, who is going to be the winner when hard choices have to be made? Still, Ed should be alright with a nice juicy City job or multiple non-execs once his political career is over. As both Ed and the country will be better off when that day arrives, perhaps we could agree that it is brought forward. Next election, perhaps?