CBI leader weighs into Blair
Digby Jones takes ministers to task over tax and red tape on eve of national conference
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Your support makes all the difference.It is not quite the "bare-knuckle fight" one of his predecessors famously promised the Government, which is just as well since, at 17 stones, the director-general of the CBI Digby Jones presumably packs some punch.
In between fighting the flab, Mr Jones has chosen to pick a scrap with Tony Blair over New Labour's determination to load business with red tape and yet more taxes – an extra £47bn, to be precise, since it came to power in 1997.
The battle of the bulge is proving a difficult one to win. Since he arrived at the CBI three years ago, Mr Jones has put on two stone. "It's a permanent problem," he says patting his stomach. "I talk to members every night over dinner and speak at a lot of lunches and I do love food."
Next week, the leader of Britain's employers will have the first opportunity to gauge whether he is faring any better in his argument with the Government. On Sunday, the CBI's 26th national conference begins in Manchester. Three days later Gordon Brown delivers his pre-Budget statement.
As usual, the conference will attract a bevy of Cabinet ministers, including the Chancellor – prompting accusations that nowadays the event is merely another staging post for politicians to peddle their wares rather than an opportunity for delegates to engage in genuine debate about the issues facing business.
Mr Brown, in particular, is promised an attentive reception. "As I get around and talk to companies, they are saying it is so difficult to do business in Britain now," says Mr Jones, picking joylessly at a bowl of fruit, his strict lunchtime diet.
"The two areas where we are better than the international competition are on tax and labour market flexibility but those are the areas where the Government has attacked us so no wonder my members are saying it is difficult.
"Am I more critical about Government than I have been? The answer is yes. Do I believe they really have to show they are mindful of the perilous situation of many British businesses? Yes again. This isn't whingeing business. I don't believe in moaning. But what I am saying is that the Government has pushed it so far and if you push it any further the piece of elastic will snap and there won't be the jobs or the profits to pay the tax to build the schools and hospitals."
Mr Jones says that the next six months will be the "defining period" of Mr Blair's second term in office. "They must be judged by their actions, not just their words," he adds.
It is not just the Government that Mr Jones and the CBI have in their sights. He is also fiercely critical of the trade unions and Brussels. Yesterday's vote in the European Parliament to reject a compromise proposal put forward by Britain over the agency temps directive had Mr Jones going again, warning that the proposals, as they stood, could cost 160,000 UK jobs.
"Where does Brussels think it is taking Europe?" he asks. "It should actually be saying let's get more flexible not let's dumb everything down to the old ideologies of yesterday."
As for the unions, Mr Jones respects them as a general would the enemy. But he just wishes they would be more honest about their motives, particularly as far as union opposition to the private finance initiative is concerned. He cites the continued conflict with London Underground over the Tube PPP as an example.
"The unions are facing an enormous conflict of interest in this area," he says. They do a good job looking after their members. That is not the same as looking after the interests of the consumers who use public transport. When they say they are doing this in the interests of public services that is not true. They are doing it in the interests of their members, for which I say well done, that's what they're paid for. But I would just ask them to be more open and honest about who they represent and whose interests they are serving."
Transport is one of the CBI leader's favourite hobby horses. The disruption to the West Coast Mainline will ensure that this weekend's trek to Manchester is more arduous for delegates than usual. But it is airport policy and not the rail system which is exercising Mr Jones' mind at the moment.
"We are at five to midnight when it comes to airport capacity," he says. "What we cannot do is delay. Gatwick and Heathrow should both be expanded. Of course, it causes problems and raises environmental issues but we are talking about 300,000 people who would be directly affected compared with 59 million people whose long-term interests would be harmed if we do nothing."
Mr Jones quickly adds that he empathises with those who suffer from transport blight, pointing out, almost proudly, that at weekends he lives with a dual carriageway (the A435 from Birmingham to Evesham) at the end of his garden.
"This is not about Nimbyism," he says. "We have got to put the nation's interests first. If this whole issue is subject to Terminal Fiveitis then Britain will go back irretrievably. We have built one new runway in Britain since the Second World War. They have built two in France in the last four years."
Lest anyone should think that, as far Mr Jones is concerned, everyone is out of step except the CBI, this year's conference will include a navel-gazing session given over to examining the reputation of business.
As far as corporate ethics are concerned, Mr Jones reckons standards of governance are in much better shape here than in the US. Pay is a thornier issue. "Here am I saying the firefighters have got to be responsible and the Government has got to be strong and then somebody on millions says it's not enough. It doesn't play well."
As for his own salary, well, the CBI director-general will get the same across the board rise as everyone else in January coupled with a performance bonus based partly on how his line managers rate him. His current salary of £265,000 hardly makes Mr Jones excessively paid by UK corporate standards and even his fiercest detractors would have to say he earns it.
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