Food speculation: UK government in bed with the culprits
Date: 18 December 2013
Over the last few years, the EU has been trying to pass legislation to curb speculation in the commodity markets. This is because the financial sector has been allowed to gamble on food prices, a practice which has increased volatility in global commodity prices, and has played a significant role in the sharp food price spikes of the last few years, leading to hunger, poverty and protests in many parts of the global south.
The World Development Movement has been campaigning on the issue of food speculation for the last few years and was hopeful that the EU would agree on a strong regulation that will curtail this disgraceful practice that sees food as merely a commodity to maximise profit rather than a right for people.
The latest research carried out by WDM reveals how the UK government is not just in bed with the UK finance sector, but actually made the first move. We have exposed how government ministers have encouraged the City to lobby against key financial reform legislation, including efforts to properly regulate food speculation, and have worked with financial lobbyists to coordinate their efforts.
This relationship is indeed a dangerous association that is putting the profit of a few above the needs of millions of people worldwide. Instead of being on the right side of history, the British government has proved its collusion with big business and disregard for human rights and dignity. Its attempts to weaken this legislation are another example of how the British authorities prefer to cosy-up to the financial sector rather than support the growing number of people that are campaigning to stop its worst excesses.
The WDM campaigners documented the intertwined relations between government officials in the treasury and the foreign office and financial services industry, showing how the treasury ministers urged the financial sector to up its lobbying, with then financial secretary to the treasury Mark Hoban saying in a speech: “If we get the MiFID review right [we need] effective and evidence based engagement not only from the Government but from the financial services industry.”
The report also documents how Foreign and Commonwealth Office (FCO) Minister David Lidington also offered the FCO’s services to support the industry in opposing strong regulation.
The final legislation is set to be agreed today (Wednesday) with the UK government continuing to block efforts to secure strong limits to prevent speculation from distorting food prices. Tell finance minister Sajid Javid it’s time to act in the interests of people not bankers profits.
Photo: David Blackwell
