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 closed 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.
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