"Fair Tax" is the New Sexy "Fair Trade"

Recently Richard Murphy, the respected "anti-poverty campaigner and tax expert", spoke to a Business meeting of the Local Authority Pension Fund Forum (LAPFF) about the "Fair Tax Mark" campaign he has helped found.

"The Fair Tax Mark is the label for good taxpayers. It is for companies and organisations that are proud to pay their fair share of tax"

Richard told us that the issue of "tax" has become sexy in the UK and elsewhere. In the last 5 years the general public "has got it". It now beats the level of director pay as a top issue of public concern.

Tax is also now a core governance agenda. Tax avoidance creates an investor risk since boycotts by consumers who have no choice but to pay their own taxes impacts on on cash flows and makes business valuations uncertain. The "Fair Tax Mark" was started in  Feb 2014. It is UK based and rates company that don't avoid taxes - a better risk for investors.

Proper transparency and disclosure of tax policy, risk and liabilities is key.

I asked a question about what was the economic cost to Amazon for being exposed as cheating on its taxes. Richard said he did not know but pointed out that Npower had lost significant numbers of valuable customers when they were exposed by the Daily Mirror for avoiding £100 million of tax by having  a head office in Malta. Also even John Lewis Partnership has been damaged since it will not disclose what it does with its accounts in the Isle of Man.

One of my favourite quotes is from the American Supreme Court Judge, Oliver Wendall Holmes, who said "I like to pay taxes. With them, I buy civilisation.”

Workers Memorial Day - The cost of cheap clothes is paid for in blood & why we are all guilty

Tomorrow is Workers Memorial Day (WMD). An international day of remembrance for those who have been killed in accidents at work or who have died of work related ill health.

As I type this rescuers are still trying to save workers trapped for days in the Rana Plaza building in Dhaka, Bangladesh. The BBC report that at least 336 people have died and 600 are missing.

WMD is also a campaigning day to fight for the living as well as remember the dead.

We all have to take responsibility for the dreadful events in Dhaka. The ridiculous cheap prices for clothes at discount stores such as Primark or Matalan is paid for in blood. Shoppers need to understand this and demand responsible and accountable ethical sourcing.

But the problem is wider than this. No doubt the middle class John Lewis brigade will be shaking their heads in disgust at the thought of all these chavs buying their cheap clothes - while at the same time their pension and insurance policies are profiting from the world wide exploitation of the same workers.

Pension trustees need to raise their game and make sure that the companies they invest in have pro active and vigorous supply chain inspection regimes and that all their sub contractors truly respect workers rights and safety. 

We also need to make sure that that the huge contract pension and insurance funds that don't have any trustee oversight are brought into the responsible investment fold. If you pay into any product that invests in any part of this supply chain you can't wash your hands of your responsibilities as a owner and a beneficiary of what is done in your name.

Why don't we make UK companies and investors legally responsible for the reckless mass deaths of companies they invest in as they are for the manslaughter of workers they directly employ in the UK? 

Also, before we get too smug, don't forget the 20,000 plus Brits who die prematurely every year in this country because of their work.

Check the TUC website for list of local events to mark Workers Memorial Day.

Co-op keeps DB pensions for 100,000 staff

Well done to the Co-op for keeping open its Career Average Defined Benefit Pension scheme for its 100,000 employees. 40,000 of whom are not members at the moment and are eligible for auto-enrolling. Gary Dewin, director of pensions for the group, said:“The scheme is a fantastic recruitment and retention tool. We wanted to stand up and look like we were an employer of choice.”

The Co-op scheme is 96% funded and I think helps proves the lie that there is no future for DB schemes.

The retail sector seems to be taking a lead in providing decent pensions for its staff. I posted on Morrison’s "bucking the trend" on DB last week. While recently I went to a pension meeting and met a trustee from the John Lewis (Waitrose) DB scheme which is not only still open but also still non contributory to employees!