Euro MPs back clamp down on casino style dealing on food and commodity prices

THE European MP's have backed a tough new law on over the counter (OTC) derivatives, central clearing parties (CCPs) and trade repositories, which aim to bring greater safety, transparency and stability to the €425 Trillion OTC derivatives market. Derivatives are used to bet on movements in other goods and investments and have been a major factor behind sharp swings in food prices in recent years. Vice Chair of the Economic and Monetary Affair Committee, Arlene McCarthy said:- "OTC derivatives are one of the major ways for traders to speculate on food prices. Between spring 2007 and summer 2008 the price of staple foods on world markets doubled, then halved within months before soaring again. Such price spikes lead to winners and losers in the financial market casino but it is a matter of life and death to millions in the developing world. In 2008 rising prices drove 17 million into food crisis in the Horn of Africa alone. Price swings spur violence and instability, as well as malnutrition and death, across the world. While this goes on it is estimated that Goldman Sachs made more than $1 Billion from trading in commodities in the single year of 2009." Under the law drafted by the Parliament OTC derivative contracts would no longer be hidden from public view. They would have to be reported to 'trade repositories' and overseen by supervisors including the new European Securities and Markets Authority (ESMA). Parliament will now conduct negotiations with the Council of Ministers, representing national governments, to attempt to finalise the text of the law by September. Further measures to regulate all derivatives trading (both on-exchange and OTC) will be published in the autumn). Arlene added:- "Regulating OTC derivatives will not end food price speculation, but by making the market more open it will limit the opportunities for market manipulation and the kind of food price spikes, we saw in 2007/2008. I hope national Governments will quickly agree the proposals from the Parliament so we can put the law in place. We can then make progress on reducing the overall amount of trading undertaken OTC and introducing limits on the amount speculators can bet on food markets to really tackle the dangers of food price speculation."

Merseyside Tax Credit Claimants need to renew!

TAX Credit Claimants across Merseyside are reminded today that they have just less than one month to renew their claims before the 31 July 2011 deadline. They are asked to act as soon as they receive a renewal pack from HM Revenue and Customs (HMRC). HMRC’s Director of Benefits and Credits, Steve Lamey, said:- “You should be renewing your tax credits by now. The sooner you renew, the sooner we can check your payments are right so that you won’t have to pay money back. It’s simple - if you don’t renew your claim before 31 July 2011, your payments may stop.”   Claimants are also urged to take care when renewing tax credits as errors could mean they receive less money than they are entitled to. As part of a "clampdown on tax credit error and fraud", HMRC is examining claims particularly closely this year. The focus is on claimants’ statements on employment, self-employment, hours worked, childcare and children as well as any details that have changed since previous years’ claims. Sadly this new 'clampdown' has been already coursing problems for some who have been court up in it, as we have reported on already , and we are monitoring this as it takes place. HMRC say that:- "Claimants must let HMRC know of any changes in their circumstances that they haven’t already reported during the year. These could be about working hours, childcare costs or pay. If asked, they must also provide details of the previous year’s income. Help and information on tax credit renewals can be obtained from the HMRC's website."  Also the HMRC are stressing that:- "Claimants on “nil awards”, and those receiving only the full family element of Child Tax Credit, will receive only the statement of their 2010/11 award. If these details are correct, no further action is needed, and their claims are automatically renewed. However, if the details on the award statement are wrong, they must tell HMRC.

Did you know that?

The tax credits helpline number is:- 0845 300 3900.

You can follow HMRC on:- Twitter @HMRCgovuk

Merseyside’s Merseyside Tax Credit Claimants fingers for April 2011 show that a total of 162,200 are claiming. This figure can be breakdown to the following:-  Liverpool - 55,800; Wirral -35,500; Sefton - 29,400; Knowsley - 20,800; St Helens - 20,600