Questions for Gordon Brown
As reported in the UKTECH newsletter, we will be submitting a range of readers' questions to Chancellor Gordon Brown.
To start the ball rolling, here's some we'd like to hear the answers to:
Chancellor, the Paymaster General who reports to you and is responsible for a measure called IR 35 which is driving UK businesses overseas, said recently about the shortage of IT specialists.
This is inflating wage costs and harming the competitiveness of
British industry. She then went on to say To address current demands the
Home Secretary is looking at a fast track visa scheme for qualified applicants from eastern Europe, Africa and India.
In the light of this move can you explain:
Q1. What is the difference between a reasonable wage demand and
'inflating wage costs.'?
Q2. If there is a skill shortage, why are small businesses with these skills being forced to close down or move overseas?
Q3. What is the difference between a fast track visa scheme and a fast track
'cheap' labour scheme to improve big business profits and replace UK workers driven overseas by Government action?
Q4. What is the difference between a UK small business, keeping fixed costs low
(i.e. paying low wages and taking payment if a profit is made) and a large corporation paying 'exploitation wages' to an immigrant worker?
Q5. Why should one be called a 'tax cheat' (As your Paymaster General recently did) and the other a genuine business?
Moving on, Chancellor, to a subject currently close to your heart, you have said recently 'Today equality of opportunity is also an economic necessity'. Perhaps you could explain:
Q6. Why are EDS a supplier to your department given the opportunity to chair a task force that has worked on the fast track visa scheme?
Q7. Why did the Spring Group have the opportunity to sit on this Task
Force? Can you confirm their patronage of the Demos group and their contributions to Labour MP Anne
Campbell's office?
Q8. Dawn Primarolo also said in connection with the Fast Track visa scheme that
'we are talking with leading UK recruitment specialists to help in this process' Can you confirm that Spring Group was one of those 'leading UK recruitment specialists'?
Q9. Why did EDS (who, the Times reported to have lobbied for IR 35) have the opportunity to be represented at secret meetings with your Paymaster
General and yet the people most directly affected be excluded?
Q10. Can you see the economic advantages for big businesses if their smaller, more flexible competitors are put out of business by IR35?
Q11. Why can a large corporation make a profit out of selling someone else's knowledge, but an individual cannot make a profit from starting a business which sells his own knowledge?
Q12. Other than size, what's the difference?
Q13. Is this not the elitism you speak of?
You have recently said: 'The Britain that will do best is one where all have the opportunity to realise their potential - to acquire skills, to work their way up, become self employed or start a business and to rise as far as their talents and potential can take them'.
Q14. How does one become "self employed" when the rules for the self employed date back to the day of master/servant? They are as out of touch with the reality of modern day life as you claim Oxford and Cambridge are.
Q15. How does one start a business when you cannot be certain of your tax status?
IR 35 creates that uncertainty.
Q16. How does one acquire skills when the expense allowance provided is
30 times less than the amount MPs consider is necessary for their expenses?
Consider the group of small businesses affected by this measure as if they were Laura Spence. She has just asked you these questions. If you cannot answer them, then do the honourable thing and drop this inequitable measure until full and proper consultation has taken place.