Showing posts with label frank field. Show all posts
Showing posts with label frank field. Show all posts

Monday, 19 March 2018

Carillion & the auditing watchdog

THE accounting watchdog has launched an investigation into two former finance directors of collapsed construction and outsourcing giant Carillion.

Richard Adam and Zafar Khan are to be investigated over the company's financial statements for the years 2014, 2015 and 2016 as well as the first half of 2017, the Financial Reporting Council (FRC) said.

The FRC has powers to impose unlimited fines or ban members from professional accounting bodies.
It said its investigations would be undertaken 'as quickly and thoroughly as possible'.

Mr Adam was Carillion's finance director from 2007 until the end of 2016 and he was succeeded by Mr Khan, who held the post from January last year until September.

The FRC is already looking into the auditing of the company's financial statements by accountants KPMG.

Carillion collapsed in January with debts of £1.3bn, a pensions black hole estimated at up to £2.6bn and only £29m cash left on its balance sheet.


Mr Adam came under fire last month from MPs investigating the collapse amid revelations that he sold shares in the firm, raising almost £800,000, ahead of its demise.

Frank Field, chairman of the Work and Pensions Committee, accused him of "dumping" the stock at the first possible moment after his retirement in December 2016.

Mr Adam explained:  
'I sold the shares that I was eligible to sell when I was invited to do so by the company as I retired.

'More than half of the shares in the company that I had an interest in at retirement have been lost as a result of the company entering liquidation.'
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Monday, 26 February 2018

Director sold shares before Carillion's decline

CARILLION's ex-finance director, Richard Adam, cashed-in nearly £800,000 worth of of his shares before the firm's collapse.

Today, Zak Garner-Purkis, the news editor of Construction News, wrote:
'It’s not every day that a director’s decision to sell the rest of their shares upon retirement is criticised in a statement by MPs.'
Yet today it seems that the situation with Carillion is an exceptional one, and the man under the microscope Richard Adam, was Carillion’s finance director for the 10 years leading up to the current crisis.
 Mr. Adam now says he didn’t see the storm clouds on the horizon when he sold his shares at the end of 2016, maintaining that the firm’s difficulties were manageable at that point.
But the Chair of the Work and Pensions select committee, Labour MP, Frank Field, saw it a bit differently.
'Dumping the last of his shares at the first possible moment because he is – with his own money at least – ‘risk-averse’.  What conclusions are we to draw from that?', the MP asked.
Or, as the HP SAUCE column in the current Private Eye wrote of the same esisode:
'During robotic evidence from another former finance director Richard Adam, his neighbour, (Richard) Howson rolled his eyes.'

Chairman Frank Field had also told the Select Committee that:  'Mr Adam pesided over Carillion's finances for a decade [and] he more than anyone else ought to know the merits of Carillion shares as a long-term investment in the light of his lengthy and lucrative tenure.'

'(By) dumping the last of his shares at the first possible moment because he is -with his own money at least - "risk averse".  What conclusions are we to draw from that?', asked Field.
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Sunday, 20 October 2013

Red Cross to distribute food parcels to hungry Brits!

GUESS WHO'S NOT GOING HUNGRY?
Cameron and Osborne dine out at Puccini's Pizzeria
e Ristorante, Swinton, Manchester, in September.

The international humanitarian organisation the British Red Cross, which helps people in crisis, recently announced that it plans to distribute food aid to the needy in Britain for the first time since WWII.

The number of people turning to food banks as emergency aid to feed their families, has more than tripled following the squeeze on benefits in April. The country's biggest food bank operator, the 'Trusell Trust', announced that they distributed food aid to 355,985 people, including nearly 120,000 children, between April and September compared with 113,264 during the same period in 2012. The Trust said that they had distributed more food aid to hungry Brits during those six months than in the whole of  2012. According to the Trust, increases in food and energy prices, pay freezes, the bedroom tax, cuts in council tax benefits and welfare changes in April, along with changes to the rules governing crisis loans, have all led to an increase in demand for emergency food aid. More than 650,000 people were referred to food banks over the period because of benefit changes - a fourfold increase - and another 117,000 were referred because of delays in paying their benefits.

The Trust told 'The Independent' newspaper that people using food banks, had started to return food that needed to be warmed up because they could not afford to switch on their electricity. The Trust, which operates around 400 food banks is calling for a public inquiry into the level of food poverty.

The one party state of Tameside in Greater Manchester, falls within the most deprived quartile counties of England. The fact that there will soon be at least 11 food banks, is a stark indicator of the dire financial difficulties which many people find themselves in. Members of the Tameside East Foodbank, are now a regular feature in many local supermarkets where they can be found handing out tickets asking customers to purchase items of food, such as milk, pasta sauces, tinned rice pudding, biscuits or snack bars, to help "local people in crisis."

Why so many people in Britain both in and out of work should find that they are unable to feed themselves when we live in the seventh richest nation on the planet, is absolutely diabolical and scandalous in the extreme. When people are facing homelessness and destitution in Britain due to welfare cuts and  the bedroom tax, this Tory government is far more concerned with bankers' mega-bonuses and in giving tax cuts to multi-millionaires. The taxpayer has already bailed out failing banks to the tune of £1.162 trillion.

Former Labour minister, Frank Field, who was appointed by Tony Blair to "think the unthinkable" regarding welfare reform, is now David Cameron's own Poverty Tsar. Although Labour laid the foundations for much of these Tory reforms, Field has spoken out about the danger of food banks becoming an "institutional part" of the welfare state. He told 'The Independent':

"Clearly something very serious is happening to people at the bottom of society which isn't picked up in the offical data. If you had said to me ten years ago that we would be discussing the use of food banks, I would have led you to a dark room to recover."

Although the Tory government claim that there is no robust evidence that welfare reforms are linked to the increased use of food banks and the government welfare adviser, former merchant banker, David Freud, has stated publicly that there is always infinite demand for a free good, Chris Mould, the executive chairman of the Trussell Trust, told the newspaper:

"The level of food povery in the UK is not acceptable. It's scandalous and it's causing deep distress to thousands of people. As a nation we need to accept that something is wrong and that we need to act now to stop UK hunger getting worse."

Wednesday, 22 June 2011

Frank Field calls for the work-shy to be punished. Welfare reforms are not radical enough, he says!

Frank Field (pictured), the Labour MP for Birkenhead, is back in the headlines once again after claiming that David Cameron`s proposals for reforming the welfare state, don`t go far enough. He favours a harsher welfare regime that punishes the 'work-shy' and rewards those who have contributed to the system.

A former Labour minister at the Department of Social Security, he was once dubbed by Tony Blair, his 'minister to think the unthinkable'. But he was criticised for being inclined to pose more questions than he answered. Now he`s been appointed by the Con-Dem government as their 'Poverty Tsar', to look into poverty and life chances.

As a former poverty professional himself, having worked for both the 'Child Poverty Action Group'(CPAG) and the 'Low Pay Unit', Field, ought to know something about poverty. But he has attracted a certain amount of notoriety for his right wing views on welfare reform. He has said that he favours reintroducing National Service to tackle unemployment and to inculcate, in the unemployed, a sense of order and patriotism. Some years ago, he also proposed that the unemployed (like criminals), should be subjected to compulsory DNA testing as a way of countering benefit fraud.

Curiously, as a practising Anglican and member of the Church of England General Synod, Field, seems to show a certain predilection for deriding the poor and disadvantaged. This may well be linked to his upbringing. Both his parents who were Conservatives (like himself), "believed in character and pulling oneself up by one's own bootstraps." He also exhibits a certain inclination towards using the welfare system as a means for social engineering. But as George Orwell, once pointed out, there`s a 'pew-renter' asleep in every Englishman.

Judging from his recent musings in the national press, a number of things seem to gall Frank Field about the welfare state. He says that since the election, nine-out-of-ten jobs which have been created, have gone to foreigners because the British fail to chase work. The public he says, are clamouring for tougher sanctions that force the long-term unemployed back to work, like taking their benefits off them. Moreover, he says, that voters reject the idea that entitlement to state benefits should be based solely on need and not earned. He believes that 'good and reliable' people who have worked and paid National Insurance contributions and contributed to society, should be prioritised for help above others. This equally applies when allocating social housing. Field says that priority should be given to those who are deserving, such as those who have waited the longest, paid their rent on time, and have been upright citizens who have kept their children out of trouble.

Concerning the government's work programme for the unemployed, Field says that he doubts that this will ultimately have a huge impact on the number of workless claimants, or those who have never worked, getting back to work. He believes that those who are likely to gain jobs from these schemes, will be the recently unemployed, who are 'work ready' and motivated and easier to place in work, by private companies running these schemes. However, he adds:

"But what of those lads, barely able to read or write, who tell me they wouldn't dream of taking a job that doesn't pay three times the rate they gain on benefits, and who refuse those jobs available on the grounds that such work is fit only for immigrants? This group of recidivists, workless claimants, know from past experience that governments leave them alone."

Field says that three quarters of the public - including benefit claimants - believe those who willingly refuse to seek work should lose all or part of their benefit. He wants tougher sanctions to force people back to work and believes, that if this is not introduced, the Government`s approach to welfare reform will fail. He also believes that we ought to get back to an insurance based system where benefits are only awarded to those who have paid in and not to those who are in need, or whose income is below a certain threshold.

As Frank Field is undoubtedly aware, claimants already in receipt of Jobseeker`s Allowance (JSA), have to be available for work and must provide evidence that they are seeking work every time they sign-on, in order to keep their JSA. Under the guise of 'work experience', many claimants are also working for their dole money for private employers or are being confined in modern day 'detention centres' doing job searches. If unemployed, your chances having getting a job will differ depending on where you live. Rates of unemployment vary across the country and within regions. In Dorset West, one claimant of JSA is chasing every vacancy, but in Hull North and Rhondda, there are 84 claimants chasing every vacancy. Moreover, Britain has never had a system of social insurance like that which developed in countries like France and Germany. Britain`s welfare system is a product of the new poor law and the 'workhouse', which continued in this country from 1834 to the introduction of the National Assistance Act in 1948. The 'means test', the workhouse, the 'deserving and undeserving poor' and the principle of 'less eligibility', have shaped and moulded the British Welfare State for donkey's years, as well as the opinions of its ruling political elite.

For the last 30 years, successive governments in this country have continually sought to undermine and dismantle the benefits system on a piecemeal basis, to make it less attractive to be out of work and to price the unemployed back into work by taking low-paid employment. Hyperbole about the work-shy, scroungers, and the deserving and undeserving, used by political parasites like Frank Field, are merely conjurors tricks designed to make it easier to cut the benefits bill. The Con-Dem (millionaire) government of which he is a member, is already, "looking at more radical American-style plans to set time limits on benefits for fit people of working age", (Daily Telegraph 21/6/11).

We should not forget that back in 1996 the government cut contributory unemployment benefit from 12 months entitlement to 6 months, at a stroke, regardless of how much money people had paid into the system and without any consultation whatsoever. Who would pay into social insurance system where there was no guarantee that the government would even honour the social contract? Likewise, who would want to buy into a system which is so punitive and which pays a mere pittance, to the jobless, as compared with other welfare systems in other EEC countries? While means-testing may well create perverse incentives like making people less inclined to save, it has nevertheless, been preferred by British governments because it is far cheaper than the cost of providing a universal welfare system, where everybody was entitled, who had paid in.