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Darling admits: I do have tensions with the Prime Minister
Paul Waugh, Deputy Political Editor03.03.09
ALISTAIR DARLING today admitted to "tensions" between him and Gordon Brown amid signs of a Cabinet rift over whether the Prime Minister should apologise for the economic crisis.
Arriving in Washington on a two-day trip, Mr Brown flatly rejected advice from Cabinet members, including Mr Darling, that he should use a speech to the US Congress to admit failings by the Government and regulators in the run-up to the banking collapse.
In an interview, Mr Darling acknowledged that he and Mr Brown did not always see eye to eye: "Inevitably, when the PM happens to have been Chancellor for the past 10 years, he accumulates a fair amount of knowledge," he said.
"It's inevitable there's a tension. It's fairly healthy. The PM will instinctively want to do more, and the Treasury's instinct is to say 'hold on'."
In another possible indication of tensions, today, one of Mr Darling's senior officials, John Kingman, admitted to MPs that the regulatory system put in place by Mr Brown had "failed".
Giving evidence to the Treasury committee about the threefold watchdogs of the Financial Services Authority, Treasury and Bank of England, he said: "I am certainly not going to say that the tripartite successfully identified every problem. It clearly did not.
"If the suggestion is that tripartite should have foreseen everything it failed." He added: "Was it a full success? Plainly not."
Mr Kingman's comments contradict the Prime Minister's belief that Britain's regulatory system was a success but the world's system was a failure.
Allies of the Prime Minister say he is adamant the Government has nothing to apologise for or show humility about. He points out that the banking turmoil started in America and infected other countries, including Britain. But Mr Darling today used a Daily Telegraph interview to admit "collective responsibility" of ministers.
"The key thing that went wrong was that a culture was allowed to develop over the last 15 years where the relationship between what people did and what they got went way out of alignment, especially at the top end," he said.
"If there is a fault, it is our collective responsibility. All of us have to have the humility to accept that over the last few years, things got out of alignment."
Mr Darling appeared to accept for the first time that the Government got it wrong on City regulation. "There are some very hard questions to be asked about the regulatory model we have operated for the last few years," he said.
Downing Street sought to play down Mr Darling's comments, with the Prime Minister's spokesman arguing that both the Chancellor and Mr Brown had made similar statements in the past.
FSA chairman Lord Turner pointed out last week that the City watchdog came under intense "political pressure" not to interfere in banks' affairs.
He said the move towards "light-touch regulation" meant the FSA would have been criticised if it tried to look at firms' strategies and debt levels.
The Tories claim that Mr Brown is to blame for removing responsibility for banking supervision from the Bank of England and giving it to the FSA.
A ComRes/Independent poll today showed that the Tories are more trusted than Labour to run the economy. Some 35 per cent trust the Conservatives to steer the country through the recession, with 28 per cent backing Labour.
Reader views (74)
Thanks Gordon for raiding my pension funds - for being a coward when it comes to having an election - for the PFI debt you've landed tax payers with for eternity. Thanks for the huge salaries that the govenment have awarded themselves & of course the expenses bill that we tax payers foot: But most of all thanks for the police state we now live in - and for IRRADICATING THE ENGLISH TRIBE THAT WAS MY IDENTITY AND PRIDE.
- Diane Mundell, PORTSMOUTH - ENGLAND
Apologies (sackings) all round I think,
Brown for overseeing an economic model that was doomed to implode.. and doing nothing about it..
The bankers for being the epitome of ‘pure greed’..
Price Water House Coopers and other ‘top names’ in the audit profession for complicity, year on year when auditing banks accounts and not asking any serious questions... they were well worth their fees..!
The British people for being stupidly sucked into the belief that economies grow at that level, year in year out, and living on credit...borrowing amounts that they could never afford to repay..and thinking their houses were the cash cows that they were not!
- Ade, London
Melvyn, just how much more damage is your beloved NuLiebor government going to do to this country before they are thrown out in 2010? (TOO FRIT TO GO TO THE COUNTRY BEFORE THAT) Bean is easily the worst PM we have ever had, a total embarrassment to all the SANE people of the UK.
- David, Fleet UK
Jesus, the guy was chancellor of the Exchequer for ten years prior and leading to the credit crunch! Even my mother-in-law saw what was coming and she is in a retirement home with incipient dementia! What is wrong with G Brown? Amnesia?
- Cyrjames, berwick-Upon-Tweed, UK.
Asking Brown and Darling to apologise for the recession is about as daft as expecting Canute to say sorry when the tide came in.
Even he did the next best thing and learned to sit further up the beach.
- Barrie, essex UK
Mr Brown caan't apologise; if he did how would he stop?
- J R J, Glen Vine
Darling is coming good (albeit belatedly) with the unvarnished truth about McMitty's mismanagement of the economy (with Blair at his elbow egging him on), so it looks that, indeed, every cloud DOES has a silver lining.
- Ted, London
Apologise? He cannot even do that properly. Go now ... dignity comes to mind!
- Alan, Ware
It's only a tiff darling.
- John Smith, London , England
Darling concedes collective responsibility for failure of regulatory 'light touch'! That's it then, they should ALL hang their heads and resign! No confidence.
Election next? Like our democracy has, or can, produce an effective opposition to 'check' a short-sighted government that believes it's own hype.
The middle ground in this apathetic country is fundamentally thatcherite and I don't trust any of us to put a party in power when we wanted to believe it was the end of 'boom and bust' anyway!
The greed of all of us is responsible for the lives that have been ruined over the last six months (and it'll all happen again), but we've got too much at stake to do what needs to be done here ...
- Stalin(Ist), Bedford
Darling has tensions with the man? What's so special about that - so do a lot of voters.
- Rogan, Irving
becoming chancellor who freed BOE from political control Mr Brown. Who was chancellor throughout Labour in power,MrBrown. Who had no idea any of these problems wre taking place under his nose Mr Brown!! Who is to blame- go to an Al Murray Gig Mr Brown you will be left in no doubt.How far is No11 from THE CITY?
- David Spooner, norwich norfolk
thats just typical of brown to deny the economic downturn was partly his doing he is so arrogant
- Glenn Johns, london
Why are the Houses of Parliament not getting rid of this UNELECTED bunch?!
- Steveo, London, NW1
Firstly I dont read socialist worker and secondly Thatcher did distroy our deep mine coal industry. The problem with coal mines is that they have a tendancy to flood if not properly maintained. So, while the 200 years of coal reserves may still be down there, it will cost many millions to set up new mines to get back to where we were.
As for calls for elections well governments are elected for 5 year terms and so an election is not due until 2010 at the latest, remember John Major he had no mandate and went to the wire!!
- Melvyn Windebank, Canvey Island, Essex
Tony Blair should apologise for taking the torch from Maggie Thatcher. He knew exactly what situation he was leaving Brown with when he systematically destroyed this country.
Strangely, I don't recall voting for Gordon Brown.
- Real, London
the uk and other countries too need a whole new type of politicians, bankers and businessmen with ethics, not driven by financial gains at the expense of all. in the meantime all those bankers and businessmen who've made millions on the heads of millions of ordinary workers should be locked up in jail. down with the apathy of the british
- Beljamine, uk
If he can't bring himself to apologise for the recession, he should at least apologise for the phrase "No more boom and bust"!
- Simon, London
Step down now Mr brown you are not going to save the world.
- Martin, yorkshire
Come on Alistair you know what to say to doom & bust Brown upon his return for you have heard it many times before. So pluck up the courage, look him straight in the eyes and say 'move over darling!'
- Brian, Kenley, UK
Join the club darling, we have had these frustrations a lot longer than you. Brown needs to do more than apologise - he needs to resign in disgrace.
He is the cause of this problem and somehow he is being trusted to fix it! Why? he should be sent to prison for all the suffering he is bringing innocent families.
- Simon King, London
Resigning would be the only apology that he could offer.
APOLOGY NOT ACCEPTED, JUST HIS RESIGNATION WOULD BE ACCEPTED!
- Dee Jay, Fleet Hampshire
Brown did not cause the banking boom and bust, he contributed to it. He was like many others - he wanted to believe the good bits. However, he took credit for the boom and it is only fair that he should accept that his contribution to the bust is as real as his contribution to the boom. Don't bank on it anyone.
- Michael, london
Not many comments in support of the Anointed One, in fact anyone who has the lack of intellect to support Brown deserves all they get, trouble is the rest of us get it in the neck too.
- Albert Hall, Carshalton, England
when didn't any given politician have issues with any other 'honorable' member? these beasts are not pack animals by instinct, they simply herd together for convenience.
as soon as they sense a feast on the hoof they will quickly break rank to pursue individual indulgences.
the history of politics teaches that when more then three congregate, one of the number is subject to whispers of discontent, character assassination and eventually will be stabbed in the back.
- M.O'Brien, london.uk
What is the point of formal apologies from public officials to the public at large in respect of all or any of the adverse events that occur on their watch. By all means accept responsibility by falling on ones sword or otherwise resigning. Saying 'sorry' is nursery politics, and as Mummy used to say 'it is easy to say sorry now?' Let us have open public accountability, before the populace force a return to the block and the Tower.
- Ray, London
Gordon Brown should resign not apologies. His political expediency is his own undoing. Get rid of him, call an election and then we can at least get a better measure of the mess that he and his side kick Blair presided over for the last decade.
- Duncan Ward, london
It's all coming apart at the seams. Let's have the election soon.
- Roger, Winchester, Hampshire, England
Nobody from Nu-Labour has apologised for anything in 12yrs why earth do you think they'll start now? They'd rather burn the country to the ground than give up power or admit their mistakes. Looking at their recent exploits I'm afriad they may be doing exactly that.
- Mark, London
GB is not the only thing that does work properly around at no. 10. The email site has been down for several weeks (perhaps months). Perhaps it could only handle praise an not complaints!
- Alan, Ware
The announcement stated below of 2007 was an early public indication of the severity of financial situation that we find ourselves in:
March 2007
HSBC, Britain's biggest bank, is today expected to stun the stock market by warning that misadventures in the US mortgage market have forced to it to write off up to $11bn (£5.7bn).
Do you think it remotely possible that the then Chancellor didn't bother to ask questions or enquire as whether other banks were involved in sub-prime and to what extent?
Is it a case of a cover up, or mere incompetence?
A simple apology may be wholly inadequate.
- Henry Goldenberg, London, UK
If it was an American problem, why have two purely national banks failed - HBOS and Northern Rock? They only catered for the domestic market. The only connection with America is they made the same mistake in lending to people who had no hope of paying the debt back.
I'm fed up with Brown blaming America. They are part of a much wider problem, but the UK has made its own mess of things, under Browns watch.
He didnt care about reckless lending at the time because he was taxing us so much, if we continued to borrow we could all maintain our lifestyles without noticing. He didnt want to ban 100% mortgages back then.
He's a very clever, calculating man.
- Andyr, St Ives, Cambs
So you have tensions with the Prime Minister, eh Darling?
Don't we all Darling, don't we all....
- Ricky, Hackney, London
Yes he should make an apology and I shall detail why in a simple sentence.
10 years as chancellor, then a recession, if anyone was in place to see this coming it should have been Mr Brown
- Stuart, UK
Then why is he hanging on? And what is Crash Gordon doing in America?? He said that was where the problems were coming from not from him?!??
- Georgie, Islington, London
Apology is only fair if he resigns straight away. Why is nobody calling an election? He should be fired without salary.
- Georgie, Islington, London
its time Gordon bowed out - he's had eleven years in which to create financial disaster - nobody trusts him nor has any faith in him anymore....but poor conceited Gordon, the man from the manse, still thinks hes indispensable. What he lacks is humility and the ability to admit he made big mistakes. So, resign Gordon please.
- Yvette, leyland lancs
My question is what about the auditors, who have been checking the profits of these companies. Will the auditors to Lehman Brothers ever get asked how they could confirm record profits year on year for an exhorbitant fee, or will these sharlatons get way scott free?
- Sammy, London, UK
Roger from Wincester, I'm with you on this one but I would also like the money that's been wasted on him and his obsurd schemes refunded. Wishful thinking I know but as I'm wishing, might as well get the lot!
- Aria, South London
We don't want this idiot coming to our country after he has bankrupted your country telling us what to do - We have a new President with a clear mandate from the people to clear up the mess left by his predecessors including Greenspan who your Brown worshiped and made a Sir - Has this fool no shame!
- Des Lewis, new York USA
Brown did take the praise for an economy which roared away like a rocket and he did brag that he had seen off 'boom and bust' for good. Many commentators warned of a catastrophe but Brown knew best but it has come to pass that like everything on this planet you cannot defy the laws of gravity. The question is - should we accept that he did what he did in good faith that he honestly thought that it would work out well for the economy or give him a bo-----ing for getting it so wrong. I think the latter because he failed to take account of the many lessons from history showing that overheated economic growth without any restraint by higher interest rates,banking controls or fiscal measures particularly on the highly paid either by salary or bonuses always precedes a crash. He knows that he has blown it but he's too 'pig headed' to admit it.
- John, Leighton Buzzard, Beds
He will not apologise. The man is without shame. His 'Moral Compass' seems to have lost its way entirely when it comes to addressing his own culpability for this national disaster.
- Gordon M, Gerrards Cross, Bucks
We don't want an apology, we want a resignation. By the way, what foundation does he use?
- Roger, Winchester, Hampshire, England
Why should he apologise - after all, he never asked our permission if he could be PM in the first place.
- Ged, Ramsgate, Kent
This man was in charge of the economy for 11 years, yet arrogantly struts around blaming everyone else for his incompetence. He's the one who sold off our gold reserves for nothing during the good times. The only person I feel sorry for is Darling, who is taking the flack for his errors. If Brown really wants to help us, he should resign his post and go back to the Treasury and sort out the mess he created. I'm not a Liberal Democrat, but the only person who offers credible solutions to financial Armaggedon is Vince Cable. The Liberals would be a serious political contender if he was their Leader.
- Sonia M., St Albans, Herts
No newspaper has the courage to point out the truth: that Zionist bankers are behind the "crisis", which is entirely manufactured.
- Neil M., london uk,
This obsession with humiliating politicians is bad for democracy and doesn't actually achieve anything. Wouldn't it be better for Londoners to actually try and understand why the recession happened, beyond just saying it's Gordon Brown's fault. The same nightmare is unfolding everywhere so what was Gordy supposed to do. Sit on the shore like King Canute and stop the economic deluge hitting us. Come on people - start thinking and stop blaming.
- Tony Mcmahon, London, UK
Yes, he should, and some. Of all people he had more control, more influence and more information at his fingertips than anyone in the country. He set the scene and claimed all the credit for seeming success. He should very definitely apologise for a squandered decade.
- Sandy, Ealing, UK
Don't be silly; its not Brown's fault, but a global crisis. No good the Tories and Bankers trying to shift the blame.
- Dhanraj, basildon
Doom and Busted Clown KNOWS he is guilty, and has NO decency to resign: he shouldn't be forced to do so, he should have done it without any coercion.
And yes, he IS responsible for this financial mess, NY and London are the 2 laxly regulated financial centres that together kicked this off. Who do you think created all those 'exotic' sorry, toxic, financial instruments?
As usual for dishonest politicians and especially leaders, when times are good, they want all the thanks, when times are bad, then they don't want the blame, it's nothing to do with them. Scum to the last.
All our politicians also share collective guilt and should get NO pension at all; all their contributions should go into a fund for those made redundant etc. likewise with all at the top of the Treasury. That should concentrate their minds wonderfully, and give them some insight into the suffering that others undergo.
- Ralph, GB
I'm no fan of Gordon or Labour, but the recession is definitely not his fault. Hardly anyone saw it coming. If they had, they would have made lots of money out of their foresight. The historical fact is that since the dawn of modern society, there have been many recessions, which few predict, which still fewer (if any) understand, and which absolutely no-one has ever found a reliable method of avoiding.
Are there alternatives? Communists will tell you so, but communism avoided recessions only by locking its society into conditions permanently like the trough of the worst of recessions, and by using viciously dictatorial government to keep it that way. Feudalism and fascism were even worse. No thanks!
- Nigel, London
At least Alistair Darling has to the courage to admit that mistakes have been made in the past. Though I still believe they are being made as we try and get out of trouble.
As for Brown, he is in total denial. The picture above shows him getting make up be sure to catch any news clip of him with Obama. As he poses in the limelight, I believe you will come to realise how false he is.
Melvyn, it may have passed your notice but Margaret Thatcher did not destroy the coal industry. The low price of coal then, meant it was totally was economic at the time to produce. Now as energy prices have increased, coal has more value and we still have plenty of it. This compares with Brown selling our Gold at the lowest price. He also exhorted the North Sea oil industry to increase oil production at the very time, allowing for exchange rates and inflation, when it was as cheap as it has ever been in history. Not so much left when the price hit $147 a barrel. With the aid of clean coal technology, coal is ready to make a come back for the benefit of the country.
- Harry H, London UK
I do not support the Labour Party, but to try and dump Britain's present state on Gordon Brown is just a bit far-fetched. Yes his Governement are answerable for the panic steps they took to try to lessen the effects of a world recession. Yes the Government's wholly unprofessional dealings in the way they have shored up the banks, one could go on.......... The entire Western World's governments are collectively guilty of not keeping a tighter reign on banks. The obscene amounts of money the people at the top of the banking world paid themselves for what has turned out to be the most grossly inept management of mind-boggeling sums, while visiting ever increasing charges on their customers, really leaves one beggered for words.
This is a time when the party political sniping and point-scoring should be put aside in the national interest. The "Anything-you-can-do-I-can-do-better" is NOT HELPING ANYONE an is an disgrace in the present world financial climate.
- Marie Pestano, W
Oh grow up Melvyn! Broaden your perspective from just what socialist worker prints. They are biased.
On your point - Brown has been gloating over "his" successful management of the economy for years and is now suggesting that the US lead, global recession is definately not down to him - he cannot have it both ways. Either 1. He was not responsible for the growth (it was just an unregulated US lead bubble in which case he should be fired for not managing the economy properly) or 2. He is responsible for the crash (it was as a result of his great growth plan that left us exposed, in which case he should be fired for not managing the economy propery). You cannot have it both ways.
- Jon, london,England
McCavity is away on his toes again.
- Michael Murphy, colchester
come on brown, can you please give up your nice PM pension now please you have ruined this company..sorry country....i closed my company just because of your small company rules, time to go.
- Ben, London, UK
It has always been very dangerous to let ANY labour government tinker with finance,just leave them to think up new laws they can pass they seem to enjoy that even though time will show the cock ups that they have made on everything they touch. How many years will it take for the Tories to sort it all out this time?
- Derek, oliva,valencia spain
I don't want an apology: I want an election.
- Nobby Clark, Perth, Scotland
While the vultures have started picking over the bones, but a bit premature though,it occurs to me why Brown and the Treasury were so keep to keep the Bankers afloat at the expense of everyone else. If the Banks sink; it exposes just how much debt this Government has incurred. And that would nail the lie that they have acted prudently
- Jeremiah, London
He can't apologise can he? The minute he says sorry for the mess we're in he's admitting culpability and with the apology must come his resignation.
- Sharon, London
How does he get away with it. Blair was bad, but Brown has taken incompetence to a new level. Integrity does not exist in vocabulary.
Despair can't describe what everyone thinks of him.
- Asw, HK
I dont seem to remember Thatchers' appology for destroying our coal mining industry! Or local democracy in London when she abolished the GLC just becaeuse she could not beat mighty Ken.
Anyway the trouble started in America so its former President Bush who should appologise for it was his party who got us into the mess.
As for elections well little point holding one when the main opposition party has not the faintest idea of what to do, well except cut inheritence tax to their millionaire bankers!
- Melvyn Windebank, Canvey Island, Essex
Dave - Camden, Labour financed the banks without reading the fine print. They just jumped on to it. They should have renegotiated the contracts as first step of financing. Labour steps were that of naive player. Hence, Labour MPs should pay for the mess.
- Prasad, SIDCUP
After 10+ years he still has not apologised no doubt he is still not aware of the mess he has caused
- Mike, London England
Would any other political party in power mean this global crisis would pass us by? Really? Really really really? I think not. Do you think that little tinkerings with the ecomony drove us to this point? Have you ever heard of CNN? Do you know anything about what is going on in the outside world? Heard of Ireland? Portugal? Spain? Italy?
- Dave, camden
It may be time for Brown and His cohorts including Blair
to lead by example?
Lets see Blair stand-up and take a reduction in His pension followed by Brown excepting that MPs pensions are to be reduced forthwith to a more suitable level in regards to years of service.
As each day passes it is more evident that our government
played a larger part than they wish to portray in the demise we currently find ourselves in.
- P. C., rainham. essex.
I just want all the Labour MPs to give up their pensions for all the mess.
- Prasad, SIDCUP
I don't wish to alarm The US President before the start of this beautiful new friendship with Britain's wonderfully successful former Chancellor of the Exchequer, but, in a disturbingly shocking basic American phrase that Obama will understand -
Brown flunked maths at 'high school'!
- Dave, Cumbria
It surely is the end to doom & bust!
- Brian, Kenley, UK
I some times wonder in what sort of Country we now live in.
Failure is rewarded beyond some people's wildess dreams.
Government ministers admit to mistakes when at one time they would have resigned.
People's personal griefs are splashed over the front pages as the main issues.
As if some bizare "soap"
People in general seemed to be pre-occupied with the new religion " FOOTBALL"
IS THERE NO HOPE FOR US !!!
- Bernard Parke, GUILDFORD
"argues that the Conservatives were opposed to tighter rules"
He has a point a point, the Tories didn't try to stop the crisis, if anything they were behind Brown. However, it doesn't alter the fact that Brown caused it, but given a vote I'd be hard pushed to choose from any political party as currently the whole lot of them seem utterly inept.
- Bob, Cheam
Never mind apologies - let him call an election.
- Alan, Essex
All I can say is hes thick skinned. Say one thing and do nothing, Gorden keeps saying that the Tories do nothing, but Gorden you say and do exactly the same NOTHING.
Labour just hasn't listened to the electorate and they will pay for it in the next election.
- C Cusano, Bedford
Was it our own dear PM who said there would be 'no reward for failure?'
- Paul, London
