Crown, not Crown; The Duke of Lancaster Is Not What He Seems!

DucyLancsThe Duchy of Lancaster is what is known as a Corporation Sole or a corporation with a single person as beneficiary. That person is the Duke of Lancaster, none other than Elizabeth Windsor; but gender is the least important ambiguity we shall encounter. The Duchy is also a County Palatine which means it can exercise powers normally reserved to the Government.  Herein lies the problem.

Where There’s No Will There’s a Way!

It is a fundamental of English law that all property must have an owner.  But occasionally it happens that no title can be established for property, for example when a person dies with no family and not having made a will. Then it is the duty of the Crown (Government) to dispose of the assets.  This normally means selling off the asset and passing the proceeds to the Treasury.  That is unless you die on land owned by the Duchy of Lancaster (or the Duchy of Cornwall, controlled by the Duke of Cornwall, Charles Windsor). Then your property becomes their property (known as Bona Vacantia). The Duchy’s own site describes it thus:

Whatever remains undistributed from a person’s estate is the property of The Queen in Right of Her Duchy. Gifts may be made, on the Chancellor of the Duchy of Lancaster’s authority, to those who might reasonably have expected to benefit on a deceased’s death. 

The Chancellor of the Duchy of Lancaster is someone I shall return to in due course! The proceeds of bona vacantia are then distributed to charity which sounds fine.  But remember that the Duchy of Cornwall has the same arrangement and Charles Windsor has been known to give money to his old school chums the exclusive Gordonstoun! Some charity!

Hedge Funds, Interest Swaps and Property Investment

I have blogged before about the disingenuous myth promoted by Buckingham Palace that Elizabeth Windsor is politically neutral. Most certainly this applies to the Duchy of Lancaster which feeds her personal wealth and is anything but neutral.  The public image of the Duchy is one of cosy tradition with picturesque images of such assets as castles, hillsides where smiling farmers tend their flocks and babbling brooks feeding placid lakes. But the reality is very different  and it is worth taking a look at just one aspect of the Duchy’s activities.  Along with an analysis of Hedge Funds and Interest Rate Swap dealings the 2016-17 Report and Accounts mentions:

The portfolio, acquired in September 2016 for £34.25m, comprises four distribution warehouses (Basingstoke, Harlow, Redditch, Alcester) and one industrial estate in Swindon. The Duchy of Lancaster has been steadily building its distribution warehouse network in recent years, acquiring Wardley Industrial Estate in Greater Manchester in 2015 and both Estuary Commerce Park in Speke, Liverpool and Units A and B at Walker Park, Blackburn in 2014.

Bear in mind that this is only one small part of a corporation with over £600 million of assets, But note that unlike a commercial investment and property company the Duchy is not subject to Corporation Tax. In an arrangement which is available to few other individuals Elizabeth Windsor is allowed to voluntarily pay (she has a ‘Memorandum of Understanding’ with the Treasury) income tax on her earnings from the Duchy, though how much she actually pays remains secret.  Moreover, it also means that changes in the laws governing warehouses and the employees are of direct interest to the Duchy and may affect its profits. Areas such as health and safety, customs, food storage regulation and planning permission are all relevant, to name but a few. Because of secrecy we are not allowed to discover whether these issues come up in conversation between Windsor and Prime Minister.

Throw in a Murky Chancellor, a spot of Tax Dodging and Secrecy!

The quasi public/private nature of the Duchy of Lancaster highlights much that is wrong with our system. The Duchy exists to provide a personal income for the Sovereign from which Elizabeth Windsor personally benefits.. Yet as a Palatine it takes on various rights and responsibilities of Government. For example, It has its own ‘Attorney General’  the law officer of ‘the Crown’

We have already seen the exploitation of this ambiguity in defining the crown on the issue of tax. It is ‘crown’ from the point of view of levying (or, more accurately, avoiding) tax, but the revenues all go to one individual. A similarly outdated system allows the Windsors to exercise ‘Manorial Rights’ and thus claim any mineral wealth which happens to lie under any property the jurisdiction of their Duchies. The fact that this cannot be challenged is a clear case of domination over people based on archaic principles.

How Donald Trump would love that arrangement!  The ambiguous nature of crown is a grossly distorting factor in British Government.  Its chameleon like nature, able to take on a form which protects unearned privilege is a rotten heart of our system.

Finally back to the Chancellor of the Duchy of Lancaster. Interestingly it is a post once held by Sir Oswald Mosley just before he formed the British fascist New Party. What does the Chancellor do? As the duties are not time consuming we know he operates as a Cabinet Minister most of the time. But a Freedom of Information request to the Cabinet Office requesting details on his role and duties was rejected as apparently the Duchy of Lancaster is not a ‘public authority’. Predictable the Duchy itself is equally unhelpful stating that he has ‘delegated functions. So much for open Government.

In the United States the issue of Donald Trump and his family unethically conflating personal interest and public business has been the subject of scrutiny and hotly contested debate.  In the UK the Head of State is allowed to act virtually as she pleases with little or no accountability over conflict of interests. Elizabeth Windsor is really the head of a slick corporate operation, but because of Freedom on Information exemptions we are not allowed to know to what extent she lobbies Government ministers.

Harry Windsor, Contestability and the Problem of ‘Doing Good’

If the Windsors were quoted on the stock market then the past few weeks would have been what the analysts term a ‘rollercoater’  Firstly, Elizabeth Windsor visits the site of the Grenfell Tower disaster and the WinDaq rises rapidly as she is reported as ‘showing Theresa May how sympathy is done’.  But then it all spins hopelessly downwards.

In a series of interviews Harry Windsor paints the Royals as victims of a grotesque system ‘enduring’ privilege while not wanting the responsibility which comes with it.  In a twist of fate, that argument is actually similar to the one Republicans such as myself deploy, that the archaic monarchy really benefits no-one. So the WinDaq falls. Last week it hit rock bottom as it was revealed that the royals share of the Crown Estates profits will net them a very healthy revenue increase. This is in the same week as the Conservative/DUP deal highlights the dire state of public service funding.

But lets focus on one single moment, courtesy of Harry in an interview reported in the Daily Mail which actually reveals something fundamental. He muses on the point of the yoyals, concluding

‘We don’t want to be just a bunch of celebrities but instead use our role for good.’

It is difficult to see whether this comes from a place of ignorance or naivety. Harry seems blissfully unaware that what is ‘good’ has been the hottset of political hot potatoes for centuries (maybe millennia). He is effectively saying he wants the Windsors to be overtly involved in politics (as if they weren’t already). Straight away there is a problem. For me the monarchy is bad because it represents a fundamental inequality, a secretive and manipulative private interest which distorts the heart of our Government. So ‘good’ for me is a constitutional Head of State accountable to the people.

For centuries the battle lines over what is good has been framed in terms of the balance of individual and state. Libertarians would argue that what is good is few laws and low taxes with a small state since only the people themselves truly know what is best for them.  A socialist may argue that what is best is a larger state with higher taxes falling on the wealthiest in order that a redistribution of wealth gives even the poorest a better chance of the good life.  There are many other possibilities besides, especially involving the definition of freedom as I have argued elsewhere in my blog. Harry must appreciate he is in a most precarious of positions being afforded a huge level of personal privilege and freedom while being funded by the state. If he doubts this he just need to consider the freedom of action available to people using foodbanks!

It seems the approach Harry wants to take is that of Charles Windsor who pontificates on what is ‘good’ while suppressing debate and dodging accountability. He does this in a number of ways but most commonly by making interviewers sign a 15-page contract effectively handing editorial control to Clarence House. Nowhere is this more focused than on climate change.  Charles Windsor calls for allocation of resources to Green projects without the difficulty of saying where those resources will come from who will be the ‘losers’.

If Harry Windsor really wants to ‘do good’ as he says then as the campaign group Republic urges, he must, give up his royal status and argue for what he believes in.  But he will find the court of public contestability and accountability a harsher arena than the one to which he is accostomed.  Just as it should be!

Buckingham Palace Repairs; Contempt for the Taxpayer and a Dereliction of Duty

BuckPalRepairThey say that memory starts to dim with age. So it is ironic that one of the oldest members of the House of Commons, Dennis Skinner, seems to possess his in full.  The same is true of SNP MPs, maybe something to do with the  invigorating Scottish landscape! But most MPs seem to be suffering from amnesia. The reason for this conclusion? The huge majority (by 408) in the Commons for increasing the Sovereign Grant for 10 years to a massive 25% of Crown Estate profit, effectively handing the Windsors and their courtiers over a third of a billion pounds extra for the repair of Buckingham Palace.

The Sovereign Grant Act makes clear who is responsible…

Why is this shameful? In 2011 the Sovereign Grant Act was passed allocating Elizabeth Windsor 15% of the revenue from the Crown Estates.  Clause 11 of this Act, which can be viewed here states:

11. Maintenance of Royal Palaces and related land

The Secretary of State has no [my emphasis] duties under section 21 of the Crown Lands Act 1851 in relation to the maintenance of Royal Palaces and related land so far as they are maintained by Her Majesty out of the Sovereign Grant.

For avoidance of doubt Clause 13 (8) of the Act makes the situation perfectly clear:

Any reference to the support of Her Majesty’s official duties includes the maintenance of Royal Palaces and related land.

So why has the House of Commons forgotten this provision in the intervening 6 years? Clause 11 makes it clear that the Secretary of State has no business maintaining Buckingham Palace and Elizabeth Windsor is the de facto budget holder. There is no ambiguity here, she is responsible and must be held accountable for not doing so. She is in the same position as any other public body which has wilfully neglected to maintain its property.  If a Town Hall falls down or a Hospital collapses it may be in the public interest to allocate emergency repair funds but you can be sure that the Chief Executive and his/her staff would be held accountable. If Elizabeth Windsor has misused the money we have already given her, what safeguards are there that she will not misuse the extra allocation. So at the very least MPs should have refused the support until an investigation was made and arrangements were put in place for the Government itself to have organised the works. As it stands the Government will be virtually reduced to an monitoring role.

…so why is there no accountability?

Now consider the attitude of the November 2016 Report of the Royal Trustees on the Sovereign Grant. Section 4 specifically claims that there is an element of forward planning in Royal Household finances, up to 10 years ahead.  So it is surprising that there was no mention whatsoever in the Report for 2012-13 the first year of the Sovereign Grant. The current report states:

The works needed for the reservicing of Buckingham Palace have been considered as a separate, discrete element of the property maintenance 10 year plan due to the programme scope being substantially different to the other priorities for property maintenance investment in the period 2016-21.

Since there has been no major refurbishment since 1945(!) why was the appalling state of Buckingham Palace not mentioned as it must have been known?  Instead there is a complacent statement about future increases in the Sovereign Grant being used to make inroads on the backlog of repairs.

Continue reading “Buckingham Palace Repairs; Contempt for the Taxpayer and a Dereliction of Duty”

‘Let It Shine’ – On an Unsavoury World of Grace and Favour

graftFor the past month the focus of the world’s press has been on the new incumbent of the White House.  Understandably, much concern revolves around the firewall which separates Donald Trump the President from Donald Trump the businessman. The gossamer nature of this separation is, of course, worrying to those who value the liberty and dignity of citizens, since through the ages autocratic leaders have effectively facilitated the use of slave labour in private enterprises through tight political control.  But rather than looking  askance at the manipulation of the US institutions for personal gain it is worth considering an example much closer to home. Although in no way approaching the scale of Trump. the recent career of entertainer Gary Barlow provides a model of how a system of autocratic patronage operates and how it serves to subvert the aims and ambitions of an open society.

The murky background to Let It Shine

I am not a fan of Gary Barlow so I am poorly placed to judge whether his new primetime Saturday evening show, Let It Shine is good or otherwise. Undoubtedly he is a popular entertainer with musical talent as his many awards testify, but the quality or ability of Barlow as an artist is not the point of this post.  Rather, it is the place which he occupies in the British establishment and the effect this has on our society. Now, as this article by Hannah Furness in The Telegraph shows, I am certainly not the first to query the wisdom of the BBC in giving Barlow a brand new series. The problem is not wholly to do with Barlow’s tax-dodging past, although that will feature in my argument a little later.  The main issue is that the BBC is once again following a format (for example Any Dream Will Do) of using the production as a talent spotting content for a putative musical show planned by Barlow called The Band. This is semi-autobiographical, telling the story of the rise of boy band Take That, which projected him to wealth and fame.

As far as we can tell the BBC has no commercial stake in the forthcoming musical so our money is being used to provide national advertising for a private production. This issue has been raised before, most pointedly in 2008 by none other than director of the Old Vic Theatre Kevin Spacey who protested at the free promotion being given to Andrew Lloyd Webber (Lord Webber, by the way. one of Barlow’s collaborators) musicals, especially Joseph and the Amazing Technicolour Dreamcoat. Was Spacey justified? Apparently, as Furness points out, he was:

At the time [2008], a study by the Society of London Theatre found theatregoers were 47 per cent more likely to go to shows after seeing the musical television tie-in, dubbing it the “Saturday night TV effect.  

The Band musical is being produced by David Pugh Ltd and as no details have been released on funding or budget profile we are effectively ignorant of the commercial aspects of this enterprise.  We cannot know whether our licence money is directly lining the pockets of the less than socially conscious Barlow. The essential question is whether the BBC itself has any idea since it was they who approached Barlow to make Let It Shine!

A World of Grace and Favour

Should we have concerns about the financial activities of Barlow? I think so. It is less than three years since Barlow, along with two other members of Take That, was found to be putting money into a scheme ruled by the courts to be a tax dodge. The three band members were ordered to pay back  £20 million (!), a sum which they were clearly not keen to refund almost a year later as this report from April 2015 indicates. Bizarrely the BBC themselves highlighted a central issue of the debate which was the question of whether Barlow should be made to relinquish his OBE given to him by Elizabeth Windsor after he organised her ‘Diamond Jubilee’ concert in 2012. I have blogged previously about the iniquities of the honours system but here was a clear example of someone getting a gong for services rendered,  presumably the grotesquely privileged equivalent of mates rates!  Predictably, then Prime Minister David Cameron opposed a suggestion by Margaret Hodge, Chair of the House of Commons Public Accounts Committee of removing the honour.

At this point it is worth remembering the citation of the OBE which states it was awarded to Barlow for services to the Entertainment Industry and to Charity. The argument advanced by Cameron and others  was that his tax-dodging antics had nothing to do with his charitable work so the OBE should still stand.  But things are not so clear cut and charities actually receive a lot of funds from the public purse. As Zoe Williams succinctly put it in an article:

In fact, paying tax and giving to charity are connected, and if you avoid the former, you leave a gaping hole in the social fabric that must be darned by the latter. It’s like overlooking all the landmines a person planted, then giving them an MBE for money raised in the service of prosthetic limbs.

Williams goes on to make the point that there were precedents for stripping titles under similar circumstances (e.g. removing Fred ‘The Shred’ Goodwin’s knighthood) so this action was entirely reasonable.

So its now possible to see just how the system works. Gary Barlow is famous through his membership of the boy band Take That which makes a lot of money partly because of the BBC (just as for most popular UK artists). Barlow’s fame gets him the gig to organise Elizabeth Windsor’s Golden Jubilee concert,  which favour nets him an OBE. As a by-product of all this Barlow is wealthy enough to employ experts and participate in a tax scheme which diverts money legally belonging to the public purse. Barlow is recently approached by a BBC, angry at losing The Voice show to ITV and prepared to overlook Barlow’s misdemeanours in an attempt to chase ratings, despite being told by politicians not to do so. Barlow’s Let It Shine is generating free publicity for his new stage show which will virtually guarantee its success.  The BBC is thus complicit in boosting audiences for a private venture, the funding of which is unknown (possibly even to the BBC).  The continued possession of the OBE effectively justifies the whole putrid arrangement.

What links Gary Barlow to the Windsors and much of the rest of the British establishment is the desire for a grace and favour society in which they choose which social causes receive support (and who should get honours!).  But such a society where resources are allocated on the whim and predilection of the wealthy and privileged  is inimical to an open society where we all decide where resources should go and, in turn, we can all canvas public support for causes which are important to us. As I pointed out at the start, Barlow’s activities are trivial compared with the possibilities which may open up to Trump. But bear in mind that Barlow is merely one example, though a useful one as the facts are in the public domain allowing us to see the mechanism in operation. Grace and favour should have died with the nineteenth century!

Zealous & Candid; The Powerful Poetry of Republican Chartist Gerald Massey

gerald_massey_1856
Gerald Massey Chartist poet

Kings are but giants because we kneel, one leap and up go we!

Percy Bysshe Shelley presents the British establishment with a conundrum. While acknowledging him as one of Britain’s greatest poets his reputation must be carefully marshalled to hide the devastating commentary he delivered on political and social conditions (as Graham Henderson points out here). For Shelley’s radical successors the situation is simpler – just pretend that they never existed.  Such a poet was Chartist Gerald Massey born 1828 in Hertfordshire.

‘A strong feeling against the British aristocracy….’

The titles of some of Massey’s poems such as The Red Republican (also the name of a publication) and The Last of the Queens and the Kings leave us in no doubt of his aims. Shelley had died in Italy in 1822 (at the tragically young age of 29), well before the rise of Chartist activity from the mid-1830s.  But being born almost 40 years later, much of Massey’s work is placed firmly in the cauldron of that political and social movement, with his early poems published from the mid-1840s onwards. The penalties for such activity could be severe, the Treason Felony Act being passed by Parliament in 1848 with the express purpose of increasing the chances of a guilty verdict being delivered against those tried for advocating the abolition of the monarchy.  A long prison term or transportation to Australia was a real possibility!

Massey came from impoverished beginnings and a scant education in a ‘penny-school’ meant that he was virtually an autodidact. He was to engage in a wide range of literary activities aside from poetry including journalism, theology, histotian and criticism. But just as with Shelley my aim is not to analyze his work as an academic exercise but to consider what insights his work holds for radicals and republicans today.  The great American poet  and essayist Walt Whitman was in no doubt about the aims of Massey’s poetry when in 1855 he observed:

I have looked over Gerald Massey’s Poems ― They seem to me zealous, candid, warlike, ― intended, as they surely are, to get up a strong feeling against the British aristocracy both in their social and governmental political capacity.

‘Put no faith in kings, nor merchant-princes trust’

In this short post it is not possible to do justice to the whole of Massey’s substantial output so I shall focus on just three of Massey’s poems Progress and TraditionThings Will Go Better Yet and Kings are but Giants Because we Kneel from which the following is the opening stanza:

Good People, put no faith in kings, nor merchant-princes trust,
Who grind your hearts in mammon’s press, your faces in the
    dust,
Trust to your own stout hearts to break the Tyrant’s dark, dark
    ban,
If yet one spark of freedom lives, let man be true to man,
We’ll never fight again, boys, with Yankee, Pole, and Russ,
We love the French as brothers, and Frenchmen too, love us!
But we’ll join to crush those fiends who kill all love and liberty,
Kings are but giants because we kneel, one leap and up go we.

We can learn much from this verse alone. The themes are similar to those which exercised Shelley, the people are good and monarchs are not worthy of trust. The term merchant-princes is telling and points to the autocratic nature of mid-Victorian trading companies with their lack of accountability and democratic control. This was the era when the activities of the British East India Company (EIC) were finally being acknowledged as a danger to even the British government (it was nationalised in 1858 and finally dissolved in 1874).  As I mentioned in this post the EIC was an effective forerunner and model for many of todays multinational Corporations who present such a danger to us. In the far less deferential 21st century, however, even the eager consumers of the products of corporations such as Microsoft and Apple would regard trusting those organisations as a little naive! Massey’s work is essentially internationalist in tone reflecting Tom Paine’s sentiment in his comment My country is the world which was to find expression in the realisation of the proto-socialist movements in the 1820s and 1830s that the problems faced by the people had a commonality throughout Europe.

Continue reading “Zealous & Candid; The Powerful Poetry of Republican Chartist Gerald Massey”

Based on Christmas Day Viewing Figures the Queen Could be Replaced by Tess Daly Next Year!

Following some overindulgence on turkey and mince pies it took a little while for my capacity to caary out basic arithmetic to return! But a simple analysis of the Christmas Day TV viewing figures reveals something interesting.  Topping the charts (for the 3rd year running) was Elizabeth Windsor with her speech registering 7.7 million views followed by Strictly Come Dancing on 7.2 million and the Christmas Bake-off at 6.3 million. You might think that was a sound argument for the continued popularity of the Monarchy, but the figures say otherwise. Admittedly the viewing figure are something of an estimate, but with a population of about 63.1 million (2011 census, but almost certainly higher in 2016) that means only around 12% watched the speech.  Allowing for those too young, too old or without access to a TV this is still a surprisingly small figure when set against a monarch with, we are told, huge personal popularity.  So like most things connected with the royals, the idea that everyone watches the Queen’s speech is nothing more than a myth.  Certainly, few of my family and friends, (admittedly a pretty radical and rebellious lot!) watched it. Ironically, I was one of the few, catching up on iPlayer to gain insights into the current thinking of the ‘opposition’!

A few months ago following the election of Donald Trump the ‘Loose Cannon’ Giles Fraser wrote an article where he extolled the virtues of monarchy.  While I have much respect for this clergyman who gave support to the Occupy movement around St Pauls in London, this was at best a weak minded piece. Boiled down to its essence the argument was that following Brexit and Trump the world was becoming too scary and it was more comforting to simply go back to believing in princesses and fairytale castles. Lets just say that at a time when we need to come to the aid of our democratic institutions this approach did not strike a chord with me! His point was that the monarch provides a rallying point in troubled times.  But the Queens Speech viewing figures suggest this is far from the case and we may as well replace our Constitutional Monarchy with Strictly Come Dancing with Queen Tess of the House of Daly as monarch!

On a more serious note, a central plank of the argument for the continuation of Monarchy is that it commands overwhelming support.  But no figure for what ‘overwhelming’ means is given (surely more than 12%!) and there is establishment reluctance to consider the possibility of a Constitutional Convention or even a referendum where replacing monarchy is an option.  Based on these viewing figures it is understandable.  Most opinion polls give a commanding majority for the monarchy, but simply answering a question where no effort is expended or costs incurred is easy. When, however, it comes to making even a minimal effort such as listening to the Queen on Christmas Day the story is very different. On that basis, how many would make the substantially greater effort to get out and walk to a polling station to support the monarchy in a referendum? As a republican I say ‘bring it on!