Sep 17 2007
The credit crunch- What should the opposition say?
I am asked what should the Opposition now do.
My first advice is not to say anything which can make the problem worse. It is not a good idea for an Opposition to talk about individual banks, or to suggest that things are worse than they are acknowledged to be. The Oppositon should be the loyal opposition in times of crisis or difficulty. Careless talk can create or intensify bank runs. Confidence is a precious flower, and does not need more people trying to trample it.
Readers of this site will know I stayed off detailed analysis of the Northern Rock, not repeating rumours that were circulating before the news that it might borrow from the Bank of England. Since the queues started forming I have refrained from offering comment on the mortgage bank’s situation.
My second advice is to hit hard on the areas where the government is to blame, and where their words have been so different from their actions. The Chancellor has talked himself into a central position in this current credit crisis, by lending his office and the might of the Treasury to the decision to make Bank of England funds available to Northern Rock, and by his extraordinary attack upon banking lending practises a few hours before announcing his agreement to the lending facility. David Cameron is right to demand a statement from the Chancellor this week.
The Opposition needs to ask the following questions(amongst others):
1. Why did the government relax the inflation target before the last election?
2. When did the Chancellor first become aware of the rash lending practises of banks that he alleged last week in his Telegraph interview? Why did the government do nothing about this before if they really believed that?
3. Does he think money is still too loose in the economy? Is he happy with the further hike in mortgage rates and market rates we have seen in the last couple of weeks?
4. Given that the Consumer Price Index was last recorded at +1.9%, below target, and given the strong action now being taken on public sector pay, how much more inflation does the Chancellor think there is to squeeze out?
5. Given the way mortgage regulation was greatly increased by this government, why have these problems arisen?
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John Redwood has been the Member of Parliament for Wokingham since 1987. First attending Kent College, Canterbury, he graduated from Magdalen College...
The opposition should be hammering home the message that far from inheriting ‘an economic mess’, New labour inherited a very strong economy and proceeded to squander it. It is time to put Gordon Brown’s lies to bed. Do it - and fast.
Go on and on about Gordon Brown’s economic mis-management. Point out that using the CPI instead of the RPI tends to grossly under-estimate the rate of inflation, which works for a while but makes house prices skyrocket.
Point out how much money is wasted on quangos and on the NHS IT Plan. Pointing out how much is wasted, and how little would be needed to properly equip out troops with mine-protected vehicles is a good point to make as it makes Gordon look heartless and uncaring.
The public these days seem to work on an emotive level more than anything, but they are also well and truly sick of New Labour “tax and spend” policies. So, ask also about why Scotland and Wales get a much higher per-capita spending than does England.
This will annoy Scotland and Wales, but as you’ll be setting up an English Parliament if you get in next time, you can afford to wind these two parasites up a bit; they’ll not be able to do anything to England, your core voters.
Finally, cease wibbling on about green issues. The public are not stupid, and whenever we hear “Green tax” we think “Oh ….these stupid (POLITICIANS)want to tax us even more”. The Labour experience is that taxes go up, and don’t come down; if you cannot say ‘Tax cut’, say nothing.
Reply :Family edits! I do point out how much money this government wastes, and make the case for lower taxes not more taxes.