More on the MP's

I really do think the MP’s expenses row has gone on far too long. Should we not draw a line under this or if you are a Tory build a moat? Furthermore, there are expenses which they incurred and are being ridiculed without rational consideration.

For instance, one MP has been criticised for claiming horse manure. Don’t the electorate realise that in this current economic climate specifically that expense was necessary to help bed in a sound financial base so in time we will see the green shoots of recovery. On the other hand if this fails a suggestion has been that he puts it back from whence it came.

As someone recently said, in the last 300 years or so there has only been one person who has gone to the Palace of Westminster with an honest intention from which he did not waiver. That was Guy Fawkes.

MP’s Expenses

What I find amazing about the MP’s expenses, in addition to my astonishment in their behaviour probably due to my naivety, is that if you look at some of their expenses, that is their nature and cost I suspect if they had another employment, or should I say they were in an employment, would they purchase those items, or if they did would they spend that amount on them?
I suspect not. The mantra, obviously provided by a so - called adviser is that “it is within the rules” (Which they drew up!) Seem to remember from my history books “I was only obeying orders” being a mantra being trotted out. Mind you “trotted” reminds me of Trotter of “Only Fools and Horses” fame.
Del Boy would be proud of them!

The Stock Market

So we shouldn’t go back into the stock market?

Far be it for me to advise, but how about some interesting information. In the last three months shares in Barclays have nearly trebled, in the Governments subsidiary company, RBS to you and me, doubled, HSBC a paltry 10% increase and for those that like a flutter with ‘arry’s team (Spurs to the less informed) 10%; mind you the last one was fighting against relegation. At least the others didn’t have to worry about that. Mind you RBS did, but Mr Abramovich, or rather the Scottish equivalent, Alistair Darling put his money (or should I say our money) in, to allow them back into the transfer market. Either way some banks have proved to be a good investment in that period.

But, how about this apparent quirk in the stock exchange. Our most successful and biggest retailer in its field, Tesco, sees its shares down by 10% over the same period. However, as Mrs T said you can’t buck the market so we have to accept these figures reflect the values of these companies. So as I started, should we go back into the stock market?

Chairman's Share Options

So Sir Philip Hampton, Chairman of RBS, is now awarded share options to a value of £1.5m in addition to his annual salary of £750k. In the light of the (justified) criticisms of Sir Fred Goodwin’s pension pot, are we seeing a common theme here? However, not only is the theme common but so is the company. A (justified?) criticism of the City was that the power of the institutions such as Pension funds had the necessary clout, by virtue of their shareholdings, to influence companies, though these comments will not venture specifically into that area. Have the Government, who represent the majority of shareholders being the taxpayers, got a clue as to what is going on? If they did, then why are they not using their clout as they have the majority of the shares?

Bank Loans

So Lloyds TSB are considering paying bonuses.

At least they are being consistent with other banks, namely paying for failure. They only bought HBOS less than six months ago which is now reporting monumental losses. They have said that the directors will not get bonuses, but how about senior management, not at board level, who were part of the driving force in this banking disaster. These guys never get a mention as they keep a low profile whilst picking up the money. Let’s see which grades of staff get the bonuses and not be told as a defence, that a large proportion of their staff only get £17,000 per annum.

source: BBC news

Chelsea Football Club

Chelsea Football Club have published their financial results which demonstrate consistency over the last few years (yet more losses) following a change in ownership. Their losses were £64m which, we are advised, are after exceptional items. These exceptional items which are included in staff salaries amount to £23.1m and relate to compensation payments to two first team managers and five coaching staff. As they don’t include the most recent manager departure are they still considered exceptional? Interestingly they state that any squad restructuring in the summer is to be funded predominantly by sales. Interesting as they have an ageing squad, though they don’t mention which summer!!!!

Football Finances

For eight years they reigned supreme until they were toppled four years ago by one of their rivals and have failed in the last four years to wrestle back top spot from them. Who am I talking about and what am I talking about? A clue; for the first five years of the European Cup, since renamed the European Champions League, one of these two won it for the first five years. Now there’s a similarity?

The answer, Real Madrid have retained top spot for the fourth year running, Manchester United coming second again, as the richest football club as disclosed in the “league table” recently published.

The clue above refers to Real Madrid winning the competition for the first five years. Chelsea, Arsenal and Liverpool are fifth, sixth and seventh respectively. Possibly if these last three had used Morley and Scott’s bookkeeping and management accounts services their reporting systems would have been far more efficient to enable them to be higher up the table!

source: BBC news