Government, Israel, Middle East, Palestine, Politics, United States

The formation of a Palestinian ‘unity’ government…

ISRAEL-PALESTINIAN CONFLICT

The formal announcement earlier this week of a Palestinian unity government, embracing both Fatah and Hamas, curtails any remaining hope of a successful settlement of the Israeli-Palestinian conflict for some time to come. In truth, the attempts by John Kerry, the US Secretary of State, over the past nine months in brokering a process for peace, was already dead in the water following the rapprochement between the rival factions. The decision of the Palestinian president Mahmoud Abbas to enter into agreement with the Gaza-based terror organisation has simply served to convince doubters that he was never serious or intent enough on delivering a two-state model. The Palestinians have also maintained that alleged Israeli dithering over prisoner releases has been a clear demonstration that Benjamin Netanyahu’s government was simply going through the motions. Once Hamas was brought on board, though, the talks were always likely to founder. To suggest otherwise is illusionary.

Mr Kerry has devoted large swathes of his time over the past nine months in attempting to bring about a workable solution. Although many of the arguments have been thrashed out many times before, Mr Kerry’s timetable for delivery of an agreement was unrealistic, despite his efforts and commitment to the process being commendable. Progress has been made. Mr Netanyahu has come a long way from his previous implacable opposition to a two-state solution and agreed to halt new settlement buildings along the border while the talks continued.

For their part, the Palestinians have been forced to merge through weakness rather than strength: Hamas, in particular, has been affiliated with those unwieldy and tyrannical despots in both Egypt and Syria. The new ‘unity government’ in Palestine is being portrayed as a technocratic administration (whose members have no political affiliation). Fatah’s reconciliation with an organisation widely regarded as a terrorist movement, however, will be seen by many as being toxic.

There is one clear way to move forward. And that is for Hamas to recognise Israel and renounce violence for good.

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Britain, Defence, Europe, Foreign Affairs, Government, Military, National Security, NATO, Politics, Society, United States

Being prepared for war is essential, but war is not cheap…

ROYAL UNITED SERVICES INSTITUTE STUDY

A study released by the Royal United Services Institute (RUSI) shows that Britain’s involvement in Iraq and Afghanistan has cost the UK Treasury more than £29 billion. In the report, the think tank argues that the wars were “strategic blunders, spreading terrorism, drumming up resistance and increasing the opium trade”.

The conclusions, though, are controversial. For instance, the authors of the study assert that various terrorist groups would not be infiltrating Syria or threatening Britain had Saddam Hussein stayed in power. Yet, Hussein was a bloodthirsty tyrant and despot, who clearly acted as a state sponsor of terror. Tens of thousands of lives were lost, thousands more were gassed in ethnic style cleansing in northern Iraq, and Saddam Hussein would certainly have had vast stockpiles of nerve and chemical agents at his disposal left over from his 8-years war with Iran. Many of these stockpiles still remain unaccounted for. Had Hussein not been toppled he doubtless would have continued to persecute his own population. The tyrant’s bloody wars against the Kurds in the north and Arab populations of the south should never be forgotten.

Putting aside the arguments about Britain’s role in the ‘War on Terror’, one uncontroversial fact emerges from the report which is indisputable: war is not cheap. The Strategic Defence and Security Review (SDSR) has witnessed massive cuts to our Armed Forces budget. Army numbers have been drastically cut back, aircraft have been withdrawn, tank battalions diminished, and even our last aircraft carrier decommissioned. Further cuts are imminent. Many of these cuts are being justified by the theory that we would never have to engage in the variety of long-term overseas military adventures that typified our activities and engagements during the Cold War era.

Since 2001, however, we have actually been involved in two such operations at a significant cost. And within the last few days, President Barack Obama announced that he would like America to act more as part of an international coalition rather than taking unilateral action. This implies, at least, a continued British role in Western security.

The UK has to be prepared for all eventualities, and adequate contingencies should be in place. As relations with Russia continue to worsen, for example, it might prove necessary for the UK to play a part in the wider campaign of checking Vladimir Putin’s belligerence. Only last month, Britain sent four Typhoon fighter jets to the Baltics as part of a NATO deployment, a sign that the West is unwilling to allow Europe to disintegrate at the hands of the Russian president. Nobody wants a conflict, but the potential for a tough offence remains the best defence.

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Britain, Business, Economic, Finance, Government, Legal, Politics, Society, Taxation

Amazon’s tax advantage is economically unfair. Time to put a halt to it…

 

TAX LOOPHOLES

The age of the internet has brought colossal benefits to many large, multinational companies. No more so than for Amazon, a distribution giant. The company has earned very lucrative revenue streams, but has managed to deftly reduce its corporation tax bill through skilful use of tax loopholes. Last year, Amazon paid just £4.2 million in UK corporation tax, despite generating UK sales of £4.3 billion. The firm has been heavily criticised because it has now emerged that it avoided paying billions of pounds in tax last year by funnelling revenue of £11 billion through an overseas company based in Luxembourg. Amazon is also reported to have received a financial inducement and rebate amounting to £4m from the authorities in Luxembourg as part of the controversial arrangements.

This is all the more startling considering Amazon has received more than £10m in financial assistance from the Scottish Government, with the company opening a logistical distribution hub in Dunfermline, alongside its customer call centre in Edinburgh.

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Striking the right balance between competitive rates of Corporation Tax to attract foreign direct investment such as this while ensuring companies pay their rightful share is a difficult and complex area for politicians of all parties. Whilst Amazon’s avoidance causes public anger, governments have to take into account the investment the company has made in a country and the employment which that investment has created. Amazon may well argue that it would not have invested if it had been discouraged from exploiting this position.

A low rate of Corporation Tax which the UK offers in comparison to other countries is generally attractive for foreign firms wishing to make direct investment. But such schemes should also encourage companies like Amazon to pay and reduce the incentive for elaborate avoidance schemes of this sort. The loopholes provide too much of an economic and financial advantage for many large multinational firms. These require to be reined in through tighter political scrutiny and more exacting and better enacting of legislation.

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