Sunday, 5 September 2010

Tobin Tax.

Plaid Cymru have long advocated (1970's) the introduction of a Tobin tax, which is also known as the Robin Hood tax, and this is how we described our stance in the 2009 European election manifesto:
Plaid Cymru also believes that it is high time that the banks give something back to the people for whom they work. To this end, we call for a Europe-wide tax on international banking transactions which would raise billions for meeting global challenges such as international development and climate change. Every time currency is traded across European borders by bankers, this Tobin tax would help to stabilise the volatile money markets, encourage accountability
and promote responsibility in the banking sector.

The introduction of this tax has met with opposition in the past from the London parties, the city of London, as well as international financial regulators like the International Monetary Fund (IMF)and the EU.

This article in today's Observer indicates that there has been some new thinking around the introduction with both the IMF the EC now backing its introduction and even Tory Chanchellor, George Osborne warming to the idea.

This is a real vindiction of Plaid Cymru's economic competence and their relevance to both UK and European wide monetary policy making.

4 comments:

The Druid of Anglesey said...

"This is a real vindiction of Plaid Cymru's economic competence and their relevance to both UK and European wide monetary policy making."

It is nothing of the sort.

1. Plaid Cymru was not the first party to propose a Tobin tax - it has long been advocated by various socialist parties. It is only now been considered more widely due to cash strapped governments thinking imposing such a tax would (a) make it look like they are doing something; and (b) help them tap into the public anti-banker mood.
2. A Tobin tax would not in any way have prevented the credit crunch and resulting recession.

Had Plaid Cymru been calling for (a) securitisation reform; (b) credit agency reform; (c) reforming bankers compensation to encourage them to look out for the long term interests of the bank, etc. then Plaid could reasonably say that their "economic competence" had been "vindicated".

Plaid Gwersyllt said...

Plaid Cymru/SNP/Greens were the only parties to support the Tobin tax in the last election.

The Druid was particularly critical of Plaid policy especially around pensions, when it was explained in detail to him in detail, he never took the opportunity to challenge.

This is typical Druid, 'hit and run comment' can't argue the toss!!

Just to repeat Plaid Cymru had tobin tax policy going back over 30 years.

The Druid of Anglesey said...

"Just to repeat Plaid Cymru had tobin tax policy going back over 30 years."

Supporting the Tobin Tax for over 30 years is not proof of economic competence. Its merely indicative that Plaid, like many left of centre parties, supported heavier taxation on banks. As I have already stated, a Tobin Tax would not have prevented the Credit Crunch of subsequent recession so I don't understand your totemic repetition of this fact.


"The Druid was particularly critical of Plaid policy especially around pensions, when it was explained in detail to him in detail, he never took the opportunity to challenge."

I have explained my reasons for opposing Plaid's pensions proposals several times. As just evidenced by your trumpeting of Plaid support for the Tobin Tax, Plaid always has plenty of ideas of how to raise new taxes and spend more public money - what it never has is any good ideas of how to create an environment conducive to economic growth -- as IWJ's highly criticised Economic Recovery Programme has just proved.

Anonymous said...

I would support a Welsh separatist party if they advocated lower taxes, rather like the Isle of Man, Jersey or Channel Islands. That would create jobs and encourage businesses to invest in Wales.

Instead Plaid Cymru advocates higher taxes for Welsh people and Welsh businesses! What do you think Welsh businesses would do if they could get lower taxes rates across the border?

As for this idea, Sweden tried a financial transaction tax - it was a disaster.

Ben