Interview with JOHN EDMONDS General Secretary of the GMB Union and the current President of the TUC.




 
 
 
 
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                                 ON THE RECORD 
                            JOHN EDMONDS INTERVIEW       

RECORDED FROM TRANSMISSION BBC-1                                 DATE:  15.3.98 
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JOHN HUMPHRYS:                         John Edmonds is the leader of the GMB 
Union and the current President of the TUC and he's with me.   
 
                                       Good afternoon. 
 
JOHN EDMONDS:                          Hello John. 
 
HUMPHRYS:                              A bit odd that Trade Unions and Labour 
MPs have to lobby a Labour Government to protect the Welfare State, if that's 
what you are doing?  
 
EDMONDS:                               Well as a matter of fact the lobby
tomorrow, as far as I'm concerned, is very much to protect full employment. 
That's the centre of the argument. I mean the thing that- 
 
HUMPHRYS:                              That's odd too.  
 
EDMONDS:                               Well it's a bit odd yes. But Gordon has 
got to - in the Budget on Tuesday - he's just got to get the value of the Pound 
down. I go round lots of workplaces and the thing that manufacturing industry 
is scared stiff about is this continuing high value of the Pound. And unless 
something is done about it, by the end of this year we're going to see some 
very, very, serious redundancies, indeed. We're already seeing the postponement 
of investment; Exports are going down; this is a real threat and it's a real 
threat to Union members.  
 
HUMPHRYS:                              Well the way to get the value of the 
Pound down is to put Interest Rates down.  
 
EDMONDS:                               Indeed. Yes.  
 
HUMPHRYS:                              How does he do that? 
 
EDMONDS:                               Well there is only one way now. I mean 
he can't act directly on Interest Rates and I mean we're in the strange 
situation where the Monetary Committee of the Bank of England is deadlocked and 
we're relying on Eddie George, the Governor, to protect manufacturing industry 
by saying that Interest Rates won't go up any further.  Now, that's a rather 
strange position, isn't it?  I mean- 
. 
HUMPHRYS:                              Which is what he did last time, because 
there was- 
 
EDMONDS:                               I hope that's what he keeps doing and I 
hope some of the people who want to put Interest Rates up further will change 
their minds but the-Frankly, the only way he can do it: he can convince that 
Monetary Committee that Interest Rates should come down - because that's what 
needs to happen - is to ensure that this is not just a prudent Budget but in 
Tax terms it's quite tight.  There's going to have to be some Tax increase in 
order to convince that Monetary Committee - I mean, many of us wouldn't have 
started from here but this is where we are - you've got to get those Interest 
Rates down and the Pound has got to come down, otherwise redundancy is around 
the corner.  
 
HUMPHRYS:                              But he's already said he won't put taxes 
up.  He can't for two - I mean, he'd be breaking his promise wouldn't he?  
 
EDMONDS:                               Well he won't put the Standard Rate up 
and of course he's in this- 
 
HUMPHRYS:                              He also says he won't put the top rate 
up. 
 
EDMONDS:                               He says he won't put the top rate up and 
I think that's something-I think that's a restriction which was a restriction 
too far and I'm not sure that Gordon Brown himself was very keen on it. But of 
course-                                               
 
HUMPHRYS:                              Did he tell you that? 
  
EDMONDS:                               I think there's a word round the Labour 
movement which Gordon is keen not to deny, that this wasn't exactly his 
decision. But anyway- 
 
HUMPHRYS:                              Whose was it then? 
 
EDMONDS:                               Well, it-it sounded as if it was coming 
more from Ten Downing Street, or the-Tony Blair, than it did from- his 
advisors, rather than from Gordon Brown. But the big-the big problem is that in 
order to put taxes up now, he has to come up with some fairly strange ideas. 
And if he can't change the Upper Rate and that's the sensible thing to do - I 
mean people over a hundred thousand a year, people over fifty thousand a year 
can afford to pay more. There's been a tremendous gap widening between the rich 
and the poor. People on over a hundred thousand a year can certainly afford to 
pay more and that would have been a very sensible way of giving a message that 
Interest Rates can come down. And of course the value of the Pound should come 
down in quick succession after that.                                   
 
HUMPHRYS:                              You wouldn't raise a lot of money if you 
did what you're talking about - putting the top rate up a bit - would you?  
 
EDMONDS:                               Well I think we're talking about 
something between three and five billion.  If we're talking about a hundred 
thousand, we're talking about fifty or sixty per cent? 
 
HUMPHRYS:                              How would you push it then? 
 
EDMONDS:                               Well, my own feelings?  I would about
fifty thousand. That's about a thousand pounds a week.  People on a thousand 
pounds a week are not exactly stretched for the money to pay a new pair of 
socks or a new pair of stockings.  So, I think over fifty thousand I would like 
to see fifty per cent, over a hundred thousand sixty  per cent.  And I think 
the vast majority of the British people would accept that. That would give a 
very strong message to the Monetary Committee of the Bank of England and maybe 
Interest Rates can then come down, which helps not only manufacturing industry 
but an awful lot of young people on mortgages who, I don't think, are very keen 
on the level of mortgage at the moment.  
 
HUMPHRYS:                              I can almost hear, as you say that, I 
can hear some of the young Turks, in what we have to call now, New Labour, 
saying: ach, there he goes again.  You know, it's the old Trade Union cry and 
the sooner we get shot of all that stuff, the better.   
 
EDMONDS:                               Yeah.  But isn't it a better solution?  
I mean what's the alternative?  If we're going to have a tight fiscal position, 
if taxes are going to go up - and that looks as if the position that we are 
going to find ourselves in - if you don't put the upper rate up, then you are 
going to be searching around for all sorts of strange taxes.  Like, sort of, 
taxes on car parks and so on, which probably cost more to administer than 
actually raised in Revenue.  So, if you deny yourself the opportunity of doing 
what I regard as the sensible things, the straightforward things - and for that 
matter the popular things - you end up with-running around trying to find some 
rather strange tax increases.  
 
HUMPHRYS:                              They're not going to listen to you 
though are they?  
 
EDMONDS:                               Well, I'm-Not perhaps this year, but I 
think long term there is a tremendous popular feeling behind this. 
 
HUMPHRYS:                              What if they don't? 
 
EDMONDS:                               What if they don't-? 
 
HUMPHRYS:                              Listen to you. 
 
EDMONDS:                               Well, we keep arguing for the cause, 
don't we?  We keep arguing for the changes. The one thing that has to be 
listened to, I think, is this question of the value of the Pound. If the 
Chancellor can't bring the value of the Pound down, we are in some considerable 
trouble. We saw in the early Eighties how we lost a lot of manufacturing 
industry because the Pound was too high. We saw the same thing at the beginning 
of the Nineties. And when that manufacturing industry goes, when it's closed 
down it hasn't come back again.  
 
HUMPHRYS                               Gordon Brown would probably say: aren't 
you rather missing the point of my Budget?  Indeed, everything I've been doing 
- and he would say that the kernel of it all, the really important thing he's 
doing is Welfare to Work?  Aren't you impressed with that?   
 
EDMONDS:                               Well, I am impressed by it but it-There 
is a difficulty here, isn't there?  I'm very, very keen on the scheme Welfare 
to Work - the new deal - giving young people the opportunity to work.  That's a 
smashing idea and it's got tremendous support throughout the Trades Union 
movement.  But, of course, wouldn't it be a bit sad if, at the same time, we're 
putting young people into work, giving them greater opportunities, at that same 
time, bits of manufacturing industry are closing down and we're finding 
redundancies there.  So, the two go together.  We have to have Welfare to Work 
and a lower value Pound.  And, if that Pound stays at three Deutschmarks to the 
Pound, then, we all know what's going to happen.  So, that change has to be 
made.  That means higher taxes and the only point I'm making is the best place 
to raise taxes is on high earners.   
 
HUMPHRYS:                              Looking at the broader welfare picture, 
it seems to be the Government's position that we can't afford the Welfare State 
we have now and it has to be reformed for that reason - do you agree with that? 
  
EDMONDS:                               No, I don't.  There's a very nice piece 
of work that's been done by the TUC, the evidence to the Chancellor which
demonstrates that on current spending and on reasonable predictions for the 
growth rates of the British economy - not wild rates but the sort of historical 
rates, we have no problems, whatsoever in funding the Welfare State.  And, of 
course, the irony is that we don't need to worry about that problem because the 
Tory cuts have cut so deep into the Welfare State that some of the people who 
could have expected in the past to be supported are not being supported any 
longer.  So, if reform of the Welfare State is on the agenda - and, it must be 
- we must be getting more people to-more money into the pockets and purses of 
people who are very low paid or have no work at all. 
 
HUMPHRYS:                              And, the way that they will do that it 
seems again - because we're not quite sure, are we? - unless you know what 
they're going to do?  I, certainly don't - is more targetting.  Fewer universal 
benefits - we're seeing this morning- one of the leaks in one of the papers 
this morning says that Child Benefit is going to be taxed.  Do you think all of 
that sort of thing is sensible? 
 
EDMONDS:                              I think that once you start thinking 
about taxing Child Benefit, you get into some very difficult problems, indeed, 
because we all know that taxing Child Benefit will, probably, mean - unless you 
are very careful and do some very strange things - taking money away from women 
and giving it to men because that's the direction that these processes seem to 
go for.  And, the normal view is that you need to pay a high level of Child 
Benefit because if it gets to the women of this country, who have the 
responsibility in an unequal society for supporting dependents, for bringing up 
children, then, it's most likely spent on the children.   
 
                                       So, if you start doing things that move 
the money from women to men, then, you have some very, very unfortunate 
results.  
 
HUMPHRYS:                              But, if many of the women who are 
getting it are using it as pocket money, or saving it up to buy - I don't know 
- a new coat or something for themselves in a year's time, or whatever they're 
doing with it - and some people don't need it - how do you justify that? 
 
EDMONDS:                               Well, you don't justify it.  But, some 
of these anectdotal-little bits of anectdote I don't take very seriously at 
all.  The best way to ensure that very rich people do not have runaway 
opportunities to spend money, while poor people have next to none, is to do 
something about the top rate of Tax.  So, we're back to that issue.  And, 
that's the point I'm making.  If you deny yourself, as the Chancellor has, the 
opportunity to do something about the top rate of Tax, you end up trying to tax 
other benefits which have very unfortunate effects.   
 
HUMPHRYS:                              So, when you deliver this message - and, 
I assume you do deliver the message, I- 
 
EDMONDS:                               It has been delivered - yes.  
 
HUMPHRYS:                              It has been delivered. 
 
EDMONDS:                               Yes, Gordon-Gordon Brown has been very, 
very good at providing access to Trade Unionists, to business people - 
everybody throughout society.  I mean, there has been a much more open process, 
with the green budget this time - and, we've got to applaude that.  So, the 
opportunities have been made.  We've-we've done the lobbying- 
 
HUMPHRYS:                              And..-
 
EDMONDS:                               And, we'll see on Tuesday whether it has 
any effect. 
 
HUMPHRYS:                              Well, I was going to say: what-We'll see 
on Tuesday - certainly - but what's the response that you get from them?  I 
mean, do they say: well, thanks a lot for that, John - very helpful - and we'll 
take it onboard or do they give you a nod and a wink?  Or, do they just 
indicate that well: he would say that, wouldn't he? 
 
EDMONDS:                               Well, in the run-up to the Budget, of 
course, the Chancellor has - and all Chancellors do this - they say: we're 
listening, we're in listening mode.  We'll listen very carefully and 
so on.  But, the main argument that we've been putting to him in the last two 
meetings has been this high value Pound.  I'm sorry to keep coming back to it 
but it is such a-It's like this great block of concrete, hanging there, in the 
air, over so much of British manufacturing industry and unless that Pound goes 
down - and, we can't just rely on Eddie George - I mean, unless that Pound 
value goes down, we're just seeing the beginning of a recession.   
 
                                       Manufacturing industry is already in 
trouble.  It was really in recession in the last quarter of last year.  It's 
going down further.  High value Pound through the summer - very damaging, 
indeed. 
 
HUMPHRYS:                              So, unless, he puts the top rate of tax 
on Tuesday, in your view, this will be a failed Budget?   
 
EDMONDS:                               Unless he puts a package of Tax measures 
together, I'm afraid he's not going to bring the value of the Pound down and 
we're all going to be in trouble.  And, the best option is to put the top rate 
up.                            
 
HUMPHRYS:                              John Edmonds, thank you very much, 
indeed.  
 
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