New secret audio recording The scoop: how we broke the story Insight: price for a peer to fix the law Comment: Lords not so noble anymore Red Box: the politics blog
The Sunday Times secretly filmed Lord Truscott, one of the four peers who the newspaper revealed were prepared to assist in changing legislation for cash, during a meeting with the undercover reporters in the St James’ Hotel and Club in London on Wednesday January 21, 2009.
The recording shows Truscott telling the reporters, posing as lobbyists, that he will work with them to “facilitate” the amendment to the Business Rates Supplement Bill on behalf of their client.
Discussing the strategy for their lobbying campaign, he says he will help identify the members to talk to so that he and the reporters can approach them. He offers to meet the “Lords people” on his own.
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Later he describes how he had previously helped to ensure that the Energy Bill was favourable to a paying client who sells “smart” electricity meters.
The Sunday Times has also released an audio tape recording from the first meeting between Truscott and the two reporters at the House of Lords on Wednesday January 14. He discusses his fee of £2,000 a day, which would have amounted to £72,000 a year for the three-day-a-month contract he eventually proposed.
Thứ Năm, 5 tháng 2, 2009
The head of Deutsche Bank predicted "very difficult conditions" for the world economy as the beleaguered German banking giant posted its first annual
Peers who influence or amend laws to benefit companies that pay them will not face any new restrictions after the cash for amendments row.
Jack Straw, the Justice Secretary, promised new laws yesterday, allowing members of the Lords to be expelled if they bring the Upper House into disrepute.
Peers who are “non-domiciled” for tax purposes, potentially including billionaire Labour and Tory donors, could also lose their seats if plans supported by the Justice Secretary become law. Mr Straw said that, in general, lobbyists were too influential in British political life — the first hint since a report by the Commons Public Administration Committee on lobbying that curbs may be coming.
But there are no plans by the Government or the House of Lords to restrict peers who lobby on behalf of companies that pay them, despite criticism that this presents a worrying conflict of interest.
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Last week The Times revealed the case of Lord O’Neill of Clackmannan, a Labour peer and president of the Specialist Engineering Contractors’ Group, who had put down amendments to construction legislation that would benefit subcontractors. He withdrew them, acknowledging it would be “inappropriate” to pursue them in the current climate.
His action was permitted under House of Lords rules because he was paid in his role as president of the subcontracting industry body, rather than receiving a fee to change the law, which is banned.
Neither Mr Straw nor the review by the Lords’ Privileges Committee will try to tighten this rule, even though critics point out that this leaves a huge loophole allowing companies that want the law changed to pay peers.
Mr Straw said: “In the House of Commons, if you break the criminal law, or it is found that although you have not broken the law you have been doing something improper, then the House of Commons can, in extremis, expel you. That must apply to the House of Lords.” There are doubts about whether this will apply retrospectively to convicted peers such as Lord Archer of Weston-Super-Mare, the former Tory vice-chairman and novelist, and Lord Black, the former publisher of The Daily Telegraph.
There are a number of others with convictions whom it would be “inappropriate” to force out, according to Lords sources. Mr Straw is also risking the bipartisan approach to reforms in the Constitutional Renewal Bill by introducing a requirement that peers pay tax in Britain, which could hit Conservative donors such as Lord Laidlaw of Rothiemay and Lord Ashcroft, who has refused to confirm his tax status. Lord Paul, the steel magnate and billionaire Labour donor, and Baroness Gardner of Parkes, the Australian Tory peer, are openly non-domiciled and could also be affected by plans promoted by Lord Oakeshott of Seagrove Bay, the Liberal Democrat peer, that are expected to be adopted officially.
Government sources said that an attempt by Harriet Harman, the Leader of the Commons, to restrict MPs’ second earnings to 15 per cent of their main salary is unlikely to make progress. Apparently designed to embarrass the Tory front bench, many of whom have second jobs, it could hit Labour backbenchers hardest if they lose the next election.
Jack Straw, the Justice Secretary, promised new laws yesterday, allowing members of the Lords to be expelled if they bring the Upper House into disrepute.
Peers who are “non-domiciled” for tax purposes, potentially including billionaire Labour and Tory donors, could also lose their seats if plans supported by the Justice Secretary become law. Mr Straw said that, in general, lobbyists were too influential in British political life — the first hint since a report by the Commons Public Administration Committee on lobbying that curbs may be coming.
But there are no plans by the Government or the House of Lords to restrict peers who lobby on behalf of companies that pay them, despite criticism that this presents a worrying conflict of interest.
Related Links
Leading lady to drag her peers into line
Lords for hire
Revealed: paid peers tried to change laws 50 times
Last week The Times revealed the case of Lord O’Neill of Clackmannan, a Labour peer and president of the Specialist Engineering Contractors’ Group, who had put down amendments to construction legislation that would benefit subcontractors. He withdrew them, acknowledging it would be “inappropriate” to pursue them in the current climate.
His action was permitted under House of Lords rules because he was paid in his role as president of the subcontracting industry body, rather than receiving a fee to change the law, which is banned.
Neither Mr Straw nor the review by the Lords’ Privileges Committee will try to tighten this rule, even though critics point out that this leaves a huge loophole allowing companies that want the law changed to pay peers.
Mr Straw said: “In the House of Commons, if you break the criminal law, or it is found that although you have not broken the law you have been doing something improper, then the House of Commons can, in extremis, expel you. That must apply to the House of Lords.” There are doubts about whether this will apply retrospectively to convicted peers such as Lord Archer of Weston-Super-Mare, the former Tory vice-chairman and novelist, and Lord Black, the former publisher of The Daily Telegraph.
There are a number of others with convictions whom it would be “inappropriate” to force out, according to Lords sources. Mr Straw is also risking the bipartisan approach to reforms in the Constitutional Renewal Bill by introducing a requirement that peers pay tax in Britain, which could hit Conservative donors such as Lord Laidlaw of Rothiemay and Lord Ashcroft, who has refused to confirm his tax status. Lord Paul, the steel magnate and billionaire Labour donor, and Baroness Gardner of Parkes, the Australian Tory peer, are openly non-domiciled and could also be affected by plans promoted by Lord Oakeshott of Seagrove Bay, the Liberal Democrat peer, that are expected to be adopted officially.
Government sources said that an attempt by Harriet Harman, the Leader of the Commons, to restrict MPs’ second earnings to 15 per cent of their main salary is unlikely to make progress. Apparently designed to embarrass the Tory front bench, many of whom have second jobs, it could hit Labour backbenchers hardest if they lose the next election.
Deutsche Bank posts first loss in 52 years
The head of Deutsche Bank predicted "very difficult conditions" for the world economy as the beleaguered German banking giant posted its first annual lost since it was reformed after the end of the Second World War.
Josef Ackermann, the Swiss-born chairman of Germany's biggest bank, said the board was disappointed to have had to report an annual pre-tax loss of €5.9 billion (£5bn), covering the 12 months to the end of December.
As he confirmed figures first flagged by the bank last month, Mr Ackermann said the "completely unprecedented" market turbulence of the fourth quarter had hit the bank hard.
He admitted that it had exposed flaws in the bank's business model and that steps had been taken to address this.
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"We have significantly reduced certain legacy exposures and trading assets, and we have adjusted costs in businesses most directly affecdt by market turbulence," he said.
Deutsche Bank reported a net loss of €3.9 billion, having lost €4.8 billion after taxes in the fourth quarter.
During the final three months of 2007, even after the credit crisis had taken firm root, the bank made profits of €7.3 billion.
The turnaround underscores the unparalled market crisis, which worsened mid-September when Lehman Brothers collapsed and banks and hedges were left with billions in investment exposures.
Deutsche Bank was created in its current form in 1957 having been split into three regional banks during World War II.
"We are convinced that Deutsche Bank will emerge successfully from the current crisis," Mr Ackermann said.
Revenues over the full-year at Deutsche were €13.5 billion, less than half the €30.7 billion of the previous year. The bank wrote down €7 billion of investments last year, against €2.3 billion in 2007.
On top of the writedowns, Deutsche made provisions for further credit losses of €1.1 billion, a 76 per cent increase on the previous year.
Shares fell nearly 3 per cent, down €0.63 at €20.61.
Josef Ackermann, the Swiss-born chairman of Germany's biggest bank, said the board was disappointed to have had to report an annual pre-tax loss of €5.9 billion (£5bn), covering the 12 months to the end of December.
As he confirmed figures first flagged by the bank last month, Mr Ackermann said the "completely unprecedented" market turbulence of the fourth quarter had hit the bank hard.
He admitted that it had exposed flaws in the bank's business model and that steps had been taken to address this.
Related Links
Deutsche Bank warns on profits as losses grow
Treasury banks on City financiers to run UK
'Bargain' bank advisers charge £60m in fees
"We have significantly reduced certain legacy exposures and trading assets, and we have adjusted costs in businesses most directly affecdt by market turbulence," he said.
Deutsche Bank reported a net loss of €3.9 billion, having lost €4.8 billion after taxes in the fourth quarter.
During the final three months of 2007, even after the credit crisis had taken firm root, the bank made profits of €7.3 billion.
The turnaround underscores the unparalled market crisis, which worsened mid-September when Lehman Brothers collapsed and banks and hedges were left with billions in investment exposures.
Deutsche Bank was created in its current form in 1957 having been split into three regional banks during World War II.
"We are convinced that Deutsche Bank will emerge successfully from the current crisis," Mr Ackermann said.
Revenues over the full-year at Deutsche were €13.5 billion, less than half the €30.7 billion of the previous year. The bank wrote down €7 billion of investments last year, against €2.3 billion in 2007.
On top of the writedowns, Deutsche made provisions for further credit losses of €1.1 billion, a 76 per cent increase on the previous year.
Shares fell nearly 3 per cent, down €0.63 at €20.61.
Buy American plan softened to avoid a trade war
Controversial “Buy American” proposals were watered down by the US Senate yesterday, as the upper house heeded President Obama’s pleas to avoid economic protectionism.
A $900 million economic stimulus bill had included provisions that all manufactured goods bought with the money had to be from the US, a requirement that could violate international trade agreements, as well as making it difficult to buy goods using foreign components such as computers.
That, though, was voted out by Senators, a day after the newly installed President said in a television interview that “we can’t send a protectionist message… that somehow we’re just looking after ourselves”.
Instead the upper house said that while there should be encouragement to use the money to buy US made goods and services, it had to be done in a way that is “consistent with United States obligations under international agreements”.
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This, in particular, is referring to existing free trade agreements with the European Union and in North America. Both EU and Canadian officials had complained about the Buy American measure, saying that it amounted to the start of a "trade war", but yesterday the EU Ambassador to the US, John Bruton, was welcoming the climbdown by senators.
However, the Senate did reject an alternative proposal from defeated presidential candidate John McCain, which would have seen the Buy America clause dropped completely — demonstrating the feeling among American politicians to send some sort of protectionist signal to voters.
The subject is not completely resolved, because a separate bill, which has passed the lower House of Representatives, still requires that billions in infrastructure spending be made on US manufactured iron and steel. Eventually the two bills will have to be merged into a single document for Presidential approval
A $900 million economic stimulus bill had included provisions that all manufactured goods bought with the money had to be from the US, a requirement that could violate international trade agreements, as well as making it difficult to buy goods using foreign components such as computers.
That, though, was voted out by Senators, a day after the newly installed President said in a television interview that “we can’t send a protectionist message… that somehow we’re just looking after ourselves”.
Instead the upper house said that while there should be encouragement to use the money to buy US made goods and services, it had to be done in a way that is “consistent with United States obligations under international agreements”.
Related Links
US to water down its 'Buy American' rescue plan
EU warns Obama over protectionist measures
China spat raises fears of trade war
This, in particular, is referring to existing free trade agreements with the European Union and in North America. Both EU and Canadian officials had complained about the Buy American measure, saying that it amounted to the start of a "trade war", but yesterday the EU Ambassador to the US, John Bruton, was welcoming the climbdown by senators.
However, the Senate did reject an alternative proposal from defeated presidential candidate John McCain, which would have seen the Buy America clause dropped completely — demonstrating the feeling among American politicians to send some sort of protectionist signal to voters.
The subject is not completely resolved, because a separate bill, which has passed the lower House of Representatives, still requires that billions in infrastructure spending be made on US manufactured iron and steel. Eventually the two bills will have to be merged into a single document for Presidential approval
Lush founder Mark Constantine on the recession and hypocrisy
Mark Constantine, the 56-year-old co-founder of Lush, the privately-owned cosmetics store, is trying to sound reassuring. Occasionally running a hand through the mane of white hair that gives him the air of a trendy academic, dressed in a pink corduroy jacket and blue jeans that, frankly, make him resemble something that you'd find on one of his shelves, he trots out a series of encouraging trading statistics.
“We are looking at £35million of sales in the US this year”; “Like-for-like sales in the UK are only down 4 per cent”; “The company has added 98 new stores in this financial year, since June”; “The company still has a long-term aim of expanding to 1,000 outlets”; “We anticipate increasing our profits by 10 per cent this year”; “Total sales will be around £240million this financial year, up from £194million last year”; “Things are very good in Japan, lovely in Russia, Europe's not too bad....”
But this barrage of positive news is punctuated occasionally with bleak remarks about how Lush is “on pause”; how the British retail scene is “a calamity”; how the US is “one of the trickiest markets in the world”; how “one British high street retail outlet in five will be empty by the end of the year”; and how he “wouldn't put money” on his company's long-term survival. There is a short pause after this last remark, as I digest it and ask if he really means what he says. “In the current climate, is anyone putting their money on anyone? No!” He laughs loudly, almost slipping off the sofa in the company's head office in Carnaby Street, Central London, in the process. “This is going to go down in the textbooks as the second depression! And no one should be smug enough to think that they're automatically going to survive.”
His happy staff - Lush is listed regularly in the Sunday Times 100 Best Companies to Work For - won't be encouraged by the comments. “What can you say, you know? We're in a boat, we're in a storm, we're all rowing like buggery. How much longer have we got to keep rowing? Probably 18 months. I think next Christmas is far more worrying at the moment, and the following March.” He leans back. “But what do you think?”
What do I think? Well, first, I think that Constantine sounds remarkably relaxed about it all. But then he has always had a notably philosophical, if not anarchic, approach to business. The Lush mission statement, after all, proclaims that “we believe in the right to make mistakes, lose everything and start again”. And Constantine's life has been marked by instances of wild success and resounding failure. Thrown out of home at 17 by his mother and stepfather, he lived for a while in the woods in Dorset before moving to London, where he became a hairdresser, started developing natural hair and skin products, became The Body Shop's biggest supplier, was eventually bought out by Anita Roddick for £6million, ploughed the cash into Cosmetics to Go, a mail-order company that went bust after two years, before finally making it big with Lush. As Constantine rather cheesily puts it: “I'm the epitome of Rudyard Kipling's If. I have met with triumph and disaster and treated those two impostors just the same.”
Second, I think I have absolutely no idea about Lush's prospects. I mean, in these straitened times you'd have to question whether people want to buy soaps that look like bird food, face cleansers that feel like coal and bath melt that will have you picking twigs and/or confetti from your plughole for months afterwards. Then there is the grating matter of the company's mission statement, which is plastered all over Lush's shop walls and makes you feel as if you're back at school, the relentlessly chirpy and youthful staff who make you feel jaded and old, and that smell, which is caused by the lack of packaging (supposedly good for the environment) and makes some people feel really quite sick. But, having said that, I wouldn't have rated Lush's prospects 14 years ago, and since then it has grown from a single store in Poole, Dorset, to more than 600 stores in 43 countries. So what do I know?
I evade the question by changing the subject, moving from the calamity that is the British economy to the calamity of climate change. Constantine, a keen birdwatcher, has long supported alternative causes: he doesn't drive a car; he cycles to work from his home near Poole to Lush's factory near by; he joined Friends of the Earth as a youth; he is so keen on alternative medicine that he didn't have his three children immunised (“I spoke to a homeopath who said you can always nurse children through tuberculosis,” he remarks, before correcting himself: “Actually, not tuberculosis, mumps.”) and from its inception Lush has taken a strong stance against animal testing and backed environmental causes. But Constantine's recent financial support of Plane Stupid, the anti-air travel group that in December staged a protest on the runway at Stansted, grounding several flights, has led to accusations of hypocrisy, given that he runs a global company and flies between shops, and given that Lush operates airport outlets.
It's a subject about which Constantine sounds less relaxed than trading numbers. “Look, I have flown to the US only twice in five years and taken one internal UK flight.” To where? “Leeds. God knows why I didn't take a train. And actually, as of this month none of our staff will be flying domestically in the UK mainland.” What about the airport shops? “I've got three airport shops. All my competitors have 50 airport shops.” That's not much of a defence. “Look... I am against whaling and yet I've got my most successful business in Japan, which is doing the whaling. Should I not have shops in Japan? You can't live in a perfect society. Who isn't hypocritical? Who out there leads a perfectly idealistic life?”
An answer to this question arrives in the form of a bunch of Hare Krishna devotees marching down Carnaby Street, their chanting and bell-tinkling suddenly audible through the office windows. The noise dissipates the slight tension and Constantine continues by saying that the sniping will not stop Lush from campaigning. He doesn't suggest that he'll be offering Plane Stupid further financial support, given that Ryanair is threatening to sue the group for £2.2million (“It is tempting to engage in fun and games with the man from Ryanair, although I think the threat is just sabre-rattling”), but at Easter he is launching an anti-aviation soap called Chocs Away (“The whole joke is that chocolate isn't terribly good for you in excess, and neither is flying”), and a pro-vegetarian campaign. “I don't think people realise how sausages can give you cancer,” he explains. “They worry about all sorts of little things in their cosmetics and other stuff, and don't worry about this basic stuff.”
So what form will this protest take? A bath melt that resembles a sausage? Or a foot cream that smells of pork? If you think this sounds facetious, by the way, you should bear in mind that last year Lush launched “Guantánamo Garden”, a “fizzing bath ballistic”, which, when dropped into the bath, produced a note urging customers to take action against the US prison by logging on to the website of Reprieve, the prisoners' human rights organisation.
There follows a slightly sheepish confession from Constantine that he is no longer a dedicated veggie: he eats fish. “We're not going to campaign against sausages. We're going to talk to the Vegetarian Society and talk about ideas.” Right. “And, you know, that Guantánamo Garden thing, yes, it may have been a bit crass. But for someone like you it's all right - if you feel strongly about something, you can write about it and influence people. For us, though, finding meaning in our jobs can be more tricky. My wife invented it and for her it was the highlight of last year. All the money went to Reprieve, and in fact my daughter is working for Reprieve at the moment. So how nice is that?”
Claire, Constantine's 18-year-old daughter, is, as it happens, the only member of the family who doesn't work for Lush. His wife Mo, whom he met at an all-night party when he was 17, designs cosmetics for the company, while Simon, 27, is head perfumer and Jack, 24, does online marketing. They are evidently a close family and Constantine informs me that he is “semi-reconciled” with the mother who threw him out of home when he was a teenager. “She lives up the road; I spent Christmas Day with her. But, you know, it doesn't change the facts.” That you were thrown out and forced to live in the woods? “She gets fed up with hearing that story - she told me off the other day, saying 'I think you were 21, dear'. But I was 17. And it was a bit of a big deal. But I suppose you could say, well, it made me who I am. I'm not a great grudge-holder.”
Despite the family closeness, Constantine, who is worth £50million according to the Sunday Times Rich List, rather admirably resists the idea of Lush being kept going for his family's financial benefit. He says that he is thankful he didn't sell the company, which is owned by seven shareholders who all work in it, despite approaches from the likes of LVMH; that he wouldn't consider listing because it would mean that it couldn't campaign so freely; and that he is examining the possibility of turning the chain into a John Lewis-style partnership in which Lush's staff would become partners. “We're looking at that, but the problem is that when you go into John Lewis, it's not a very dynamic operation. And you have to be dynamic.”
This remark is a rare example of Constantine speaking about Lush in business terms. It doesn't last. He needs to get away for a meeting and, with the Hare Krishnas making their way back down the street, he concludes by expressing his ambitions in purely ethical terms.
“We're in the middle of an economic bloody crisis, it's a mess, we knew it was coming, we all talked about it for bloody years but nobody did anything about it. Now we are heading into an environmental crisis, we shouldn't make the same mistake. I'd like to make a contribution.”
“We are looking at £35million of sales in the US this year”; “Like-for-like sales in the UK are only down 4 per cent”; “The company has added 98 new stores in this financial year, since June”; “The company still has a long-term aim of expanding to 1,000 outlets”; “We anticipate increasing our profits by 10 per cent this year”; “Total sales will be around £240million this financial year, up from £194million last year”; “Things are very good in Japan, lovely in Russia, Europe's not too bad....”
But this barrage of positive news is punctuated occasionally with bleak remarks about how Lush is “on pause”; how the British retail scene is “a calamity”; how the US is “one of the trickiest markets in the world”; how “one British high street retail outlet in five will be empty by the end of the year”; and how he “wouldn't put money” on his company's long-term survival. There is a short pause after this last remark, as I digest it and ask if he really means what he says. “In the current climate, is anyone putting their money on anyone? No!” He laughs loudly, almost slipping off the sofa in the company's head office in Carnaby Street, Central London, in the process. “This is going to go down in the textbooks as the second depression! And no one should be smug enough to think that they're automatically going to survive.”
His happy staff - Lush is listed regularly in the Sunday Times 100 Best Companies to Work For - won't be encouraged by the comments. “What can you say, you know? We're in a boat, we're in a storm, we're all rowing like buggery. How much longer have we got to keep rowing? Probably 18 months. I think next Christmas is far more worrying at the moment, and the following March.” He leans back. “But what do you think?”
What do I think? Well, first, I think that Constantine sounds remarkably relaxed about it all. But then he has always had a notably philosophical, if not anarchic, approach to business. The Lush mission statement, after all, proclaims that “we believe in the right to make mistakes, lose everything and start again”. And Constantine's life has been marked by instances of wild success and resounding failure. Thrown out of home at 17 by his mother and stepfather, he lived for a while in the woods in Dorset before moving to London, where he became a hairdresser, started developing natural hair and skin products, became The Body Shop's biggest supplier, was eventually bought out by Anita Roddick for £6million, ploughed the cash into Cosmetics to Go, a mail-order company that went bust after two years, before finally making it big with Lush. As Constantine rather cheesily puts it: “I'm the epitome of Rudyard Kipling's If. I have met with triumph and disaster and treated those two impostors just the same.”
Second, I think I have absolutely no idea about Lush's prospects. I mean, in these straitened times you'd have to question whether people want to buy soaps that look like bird food, face cleansers that feel like coal and bath melt that will have you picking twigs and/or confetti from your plughole for months afterwards. Then there is the grating matter of the company's mission statement, which is plastered all over Lush's shop walls and makes you feel as if you're back at school, the relentlessly chirpy and youthful staff who make you feel jaded and old, and that smell, which is caused by the lack of packaging (supposedly good for the environment) and makes some people feel really quite sick. But, having said that, I wouldn't have rated Lush's prospects 14 years ago, and since then it has grown from a single store in Poole, Dorset, to more than 600 stores in 43 countries. So what do I know?
I evade the question by changing the subject, moving from the calamity that is the British economy to the calamity of climate change. Constantine, a keen birdwatcher, has long supported alternative causes: he doesn't drive a car; he cycles to work from his home near Poole to Lush's factory near by; he joined Friends of the Earth as a youth; he is so keen on alternative medicine that he didn't have his three children immunised (“I spoke to a homeopath who said you can always nurse children through tuberculosis,” he remarks, before correcting himself: “Actually, not tuberculosis, mumps.”) and from its inception Lush has taken a strong stance against animal testing and backed environmental causes. But Constantine's recent financial support of Plane Stupid, the anti-air travel group that in December staged a protest on the runway at Stansted, grounding several flights, has led to accusations of hypocrisy, given that he runs a global company and flies between shops, and given that Lush operates airport outlets.
It's a subject about which Constantine sounds less relaxed than trading numbers. “Look, I have flown to the US only twice in five years and taken one internal UK flight.” To where? “Leeds. God knows why I didn't take a train. And actually, as of this month none of our staff will be flying domestically in the UK mainland.” What about the airport shops? “I've got three airport shops. All my competitors have 50 airport shops.” That's not much of a defence. “Look... I am against whaling and yet I've got my most successful business in Japan, which is doing the whaling. Should I not have shops in Japan? You can't live in a perfect society. Who isn't hypocritical? Who out there leads a perfectly idealistic life?”
An answer to this question arrives in the form of a bunch of Hare Krishna devotees marching down Carnaby Street, their chanting and bell-tinkling suddenly audible through the office windows. The noise dissipates the slight tension and Constantine continues by saying that the sniping will not stop Lush from campaigning. He doesn't suggest that he'll be offering Plane Stupid further financial support, given that Ryanair is threatening to sue the group for £2.2million (“It is tempting to engage in fun and games with the man from Ryanair, although I think the threat is just sabre-rattling”), but at Easter he is launching an anti-aviation soap called Chocs Away (“The whole joke is that chocolate isn't terribly good for you in excess, and neither is flying”), and a pro-vegetarian campaign. “I don't think people realise how sausages can give you cancer,” he explains. “They worry about all sorts of little things in their cosmetics and other stuff, and don't worry about this basic stuff.”
So what form will this protest take? A bath melt that resembles a sausage? Or a foot cream that smells of pork? If you think this sounds facetious, by the way, you should bear in mind that last year Lush launched “Guantánamo Garden”, a “fizzing bath ballistic”, which, when dropped into the bath, produced a note urging customers to take action against the US prison by logging on to the website of Reprieve, the prisoners' human rights organisation.
There follows a slightly sheepish confession from Constantine that he is no longer a dedicated veggie: he eats fish. “We're not going to campaign against sausages. We're going to talk to the Vegetarian Society and talk about ideas.” Right. “And, you know, that Guantánamo Garden thing, yes, it may have been a bit crass. But for someone like you it's all right - if you feel strongly about something, you can write about it and influence people. For us, though, finding meaning in our jobs can be more tricky. My wife invented it and for her it was the highlight of last year. All the money went to Reprieve, and in fact my daughter is working for Reprieve at the moment. So how nice is that?”
Claire, Constantine's 18-year-old daughter, is, as it happens, the only member of the family who doesn't work for Lush. His wife Mo, whom he met at an all-night party when he was 17, designs cosmetics for the company, while Simon, 27, is head perfumer and Jack, 24, does online marketing. They are evidently a close family and Constantine informs me that he is “semi-reconciled” with the mother who threw him out of home when he was a teenager. “She lives up the road; I spent Christmas Day with her. But, you know, it doesn't change the facts.” That you were thrown out and forced to live in the woods? “She gets fed up with hearing that story - she told me off the other day, saying 'I think you were 21, dear'. But I was 17. And it was a bit of a big deal. But I suppose you could say, well, it made me who I am. I'm not a great grudge-holder.”
Despite the family closeness, Constantine, who is worth £50million according to the Sunday Times Rich List, rather admirably resists the idea of Lush being kept going for his family's financial benefit. He says that he is thankful he didn't sell the company, which is owned by seven shareholders who all work in it, despite approaches from the likes of LVMH; that he wouldn't consider listing because it would mean that it couldn't campaign so freely; and that he is examining the possibility of turning the chain into a John Lewis-style partnership in which Lush's staff would become partners. “We're looking at that, but the problem is that when you go into John Lewis, it's not a very dynamic operation. And you have to be dynamic.”
This remark is a rare example of Constantine speaking about Lush in business terms. It doesn't last. He needs to get away for a meeting and, with the Hare Krishnas making their way back down the street, he concludes by expressing his ambitions in purely ethical terms.
“We're in the middle of an economic bloody crisis, it's a mess, we knew it was coming, we all talked about it for bloody years but nobody did anything about it. Now we are heading into an environmental crisis, we shouldn't make the same mistake. I'd like to make a contribution.”
David Beckham makes a declaration of intent
David Beckham finally confirmed last night that he hopes that his loan deal from the Los Angeles Galaxy to AC Milan will be turned into a permanent move to the Italian club, after Milan officials admitted that they had opened talks with the Californian club about the player’s transfer.
Beckham spoke after Milan’s 2-2 draw with Rangers in a friendly in Glasgow, in which the former England captain played for 45 minutes. Before the match, Leandro Cantamessa, the Milan lawyer, had joined forces with Beckham’s advisers in discussion with Tim Leiweke, the Galaxy president, about releasing the player from his MLS contract.
A permanent move to Milan by Beckham would not fall foul of Uefa’s transfer window restrictions if Galaxy agreed to cancel his contract.
“I’ve expressed my desire to stay with Milan,” Beckham said. “The matter is out of my hands but I hope I can stay. I’ve made it clear now that it is my intention to stay with the club, so we’ll have to wait and see.
Related Links
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I'm tempted to stay at Milan, says Beckham
Uefa Cup for David Beckham
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Beckham makes a big impression in Milan-->
“I want to stay because this is one of the biggest clubs in the world. Playing for Milan has been an incredible experience for me — better than I thought it would be. I’ve been welcomed into the team incredibly well, I’ve been made to feel at home, and it has made me want to stay. Confidence-wise and physical-wise, this has been one of the best things to happen to me.”
Beckham admitted that he is not sure how his American employers would respond to the news and also said that he was wary of upsetting Leiweke, with whom he has had a good relationship.
“I don’t know how Galaxy will react,” Beckham said. “But I respect Galaxy and Tim Leiweke — he has done a lot for me since I moved over there. But I have expressed my desire to stay with Milan and I hope the clubs can reach an agreement. I expected to enjoy it at Milan but I never expected to enjoy it as much as I have. For one thing, I hardly expected to play in every game, as I have, so I’m really enjoying it.
“I haven’t spoken to the Galaxy yet, but someone has from my side, and it is literally down to them to hopefully come to an agreement. I hope they can do a deal. I’ve done everything that I can.”
Beckham hopes to be named in Fabio Capello’s England squad on Saturday for Wednesday’s friendly against Spain and believes that a move back to Europe would enhance his prospects. The 2010 World Cup finals, he said, remains on his radar.
“It is important for me to be involved in 2010 but my main objective now is to stay at Milan and play at the highest level,” Beckham said. “It would give me more of a chance [] if I was playing here. I’ve not spoken to \ but he’s had his staff at most of the [] games since I’ve come back. Hopefully, I will be involved. The manager is always the same: if you are playing well and doing well, then you will be in.”
Carlo Ancelotti, the Milan coach, wants Beckham to stay, as Adriano Galliani, the club’s vice-president, made plain yesterday. “We are looking to get him either on loan until the end of the season or on a permanent basis,” he said. “Beckham’s lawyers are talking to the Galaxy, and if they are ready to do a deal, we would be really happy.
“The scudetto race would be much easier for us if he stays. Beckham has given us a boost in quality and enthusiasm. He has given this team an added extra, in the way he plays, his focus, his quality of assist and in the goals that he has scored. He has made a great contribution.”
Last night’s friendly at Ibrox was never going to be the kind of match to have you on the edge of your seat. Rangers are reputed to have paid Milan more than £250,000 to spend fewer than 24 hours in Glasgow, and in such affairs, tackles are all but outlawed.
Beckham padded about the pitch, lofting a pass here and there, but looked more than a mite puggled before being substituted at half-time. Milan want to preserve him in more ways than one
Beckham spoke after Milan’s 2-2 draw with Rangers in a friendly in Glasgow, in which the former England captain played for 45 minutes. Before the match, Leandro Cantamessa, the Milan lawyer, had joined forces with Beckham’s advisers in discussion with Tim Leiweke, the Galaxy president, about releasing the player from his MLS contract.
A permanent move to Milan by Beckham would not fall foul of Uefa’s transfer window restrictions if Galaxy agreed to cancel his contract.
“I’ve expressed my desire to stay with Milan,” Beckham said. “The matter is out of my hands but I hope I can stay. I’ve made it clear now that it is my intention to stay with the club, so we’ll have to wait and see.
Related Links
Beckham lawyers in talks over permanent move
I'm tempted to stay at Milan, says Beckham
Uefa Cup for David Beckham
Multimedia
Beckham makes a big impression in Milan-->
“I want to stay because this is one of the biggest clubs in the world. Playing for Milan has been an incredible experience for me — better than I thought it would be. I’ve been welcomed into the team incredibly well, I’ve been made to feel at home, and it has made me want to stay. Confidence-wise and physical-wise, this has been one of the best things to happen to me.”
Beckham admitted that he is not sure how his American employers would respond to the news and also said that he was wary of upsetting Leiweke, with whom he has had a good relationship.
“I don’t know how Galaxy will react,” Beckham said. “But I respect Galaxy and Tim Leiweke — he has done a lot for me since I moved over there. But I have expressed my desire to stay with Milan and I hope the clubs can reach an agreement. I expected to enjoy it at Milan but I never expected to enjoy it as much as I have. For one thing, I hardly expected to play in every game, as I have, so I’m really enjoying it.
“I haven’t spoken to the Galaxy yet, but someone has from my side, and it is literally down to them to hopefully come to an agreement. I hope they can do a deal. I’ve done everything that I can.”
Beckham hopes to be named in Fabio Capello’s England squad on Saturday for Wednesday’s friendly against Spain and believes that a move back to Europe would enhance his prospects. The 2010 World Cup finals, he said, remains on his radar.
“It is important for me to be involved in 2010 but my main objective now is to stay at Milan and play at the highest level,” Beckham said. “It would give me more of a chance [] if I was playing here. I’ve not spoken to \ but he’s had his staff at most of the [] games since I’ve come back. Hopefully, I will be involved. The manager is always the same: if you are playing well and doing well, then you will be in.”
Carlo Ancelotti, the Milan coach, wants Beckham to stay, as Adriano Galliani, the club’s vice-president, made plain yesterday. “We are looking to get him either on loan until the end of the season or on a permanent basis,” he said. “Beckham’s lawyers are talking to the Galaxy, and if they are ready to do a deal, we would be really happy.
“The scudetto race would be much easier for us if he stays. Beckham has given us a boost in quality and enthusiasm. He has given this team an added extra, in the way he plays, his focus, his quality of assist and in the goals that he has scored. He has made a great contribution.”
Last night’s friendly at Ibrox was never going to be the kind of match to have you on the edge of your seat. Rangers are reputed to have paid Milan more than £250,000 to spend fewer than 24 hours in Glasgow, and in such affairs, tackles are all but outlawed.
Beckham padded about the pitch, lofting a pass here and there, but looked more than a mite puggled before being substituted at half-time. Milan want to preserve him in more ways than one
House prices rose 1.9 per cent in January
Embattled British homeowners were offered a glimmer of hope today as the latest monthly house price survey from the Halifax showed that average prices rose by 1.9 per cent last month.
The UK's biggest mortgage lender, owned by the part-nationalised Lloyds Banking Group, said that the rise last month offset December's fall of 1.6 per cent.
The average house costs £163,966, the Halifax said.
But the Halifax, whose survey is among the most carefully watched barometers of market confidence, cautioned against paying too much attention to any single month.
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Prices have still fallen by 5.1 per cent over the past three months and have slumped by 17.2 per cent over the previous 12 months.
Martin Ellis, the Halifax's housing economist, said: "There are some very early signs that market activity may be stabilising, albeit at quite a low level.
"Nonetheless, continuing pressures on incomes, rising unemployment and the negative impact of the dislocation of the financial markets on the availability of mortgage finance are expected to mean that 2009 will be a difficult year for the housing market."
Today's survey from the Halifax comes on the day that the Bank of England is expected to cut interest rates for the third month in a row in a desperate effort to revitalise the economy.
The Bank is expected to cut the cost of borrowing by 0.5 per cent to 1 per cent, their lowest level ever.
Earlier this week, however, the Building Societies Assocation urged the Bank to keep rates on hold, arguing that borrowing costs were now low enough.
The Federation of Small Businesses gave the Bank the same message today, saying that it was bank's willingness to lend that was now the real issue.
The Halifax's survey comes after two economic indicators this week offered further indications that the nation's economic woes could be close to bottoming out.
The Chartered Institute of Purchasing and Supply (CIPS)/Markit survey showed that activity in the services sector slumped again in January, but at a slower pace than analysts had expected.
A second CIPS survey of construction also showed that output is declining across the industry, but again at a slower rate than previously.
The UK's biggest mortgage lender, owned by the part-nationalised Lloyds Banking Group, said that the rise last month offset December's fall of 1.6 per cent.
The average house costs £163,966, the Halifax said.
But the Halifax, whose survey is among the most carefully watched barometers of market confidence, cautioned against paying too much attention to any single month.
Related Links
Interest rate heads into uncharted territory
Debt trap as house prices fall and job hopes dim
Is your home in a mortgage blackspot?
Prices have still fallen by 5.1 per cent over the past three months and have slumped by 17.2 per cent over the previous 12 months.
Martin Ellis, the Halifax's housing economist, said: "There are some very early signs that market activity may be stabilising, albeit at quite a low level.
"Nonetheless, continuing pressures on incomes, rising unemployment and the negative impact of the dislocation of the financial markets on the availability of mortgage finance are expected to mean that 2009 will be a difficult year for the housing market."
Today's survey from the Halifax comes on the day that the Bank of England is expected to cut interest rates for the third month in a row in a desperate effort to revitalise the economy.
The Bank is expected to cut the cost of borrowing by 0.5 per cent to 1 per cent, their lowest level ever.
Earlier this week, however, the Building Societies Assocation urged the Bank to keep rates on hold, arguing that borrowing costs were now low enough.
The Federation of Small Businesses gave the Bank the same message today, saying that it was bank's willingness to lend that was now the real issue.
The Halifax's survey comes after two economic indicators this week offered further indications that the nation's economic woes could be close to bottoming out.
The Chartered Institute of Purchasing and Supply (CIPS)/Markit survey showed that activity in the services sector slumped again in January, but at a slower pace than analysts had expected.
A second CIPS survey of construction also showed that output is declining across the industry, but again at a slower rate than previously.
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