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In row over genetically modified food

Blair defends billionaire cabinet member

By Richard Tyler
24 February 1999

Labour's close ties to big business are central to the ongoing row over
genetically modified food. The storm that unfolded last week focussed on
the role of Lord Sainsbury, Minister for Science.

His personal wealth is estimated at �3.3 billion, largely from the
supermarket chain of the same name. Labour Research, an independent
research group, claims that Lord Sainsbury earned more than �36 million in
dividends from his shares in 1998, more than seven times that of his
closest rival.

Lord Sainsbury sits on the Cabinet committee on biotechnology and is
responsible for the budget of the Biotechnological and Biological Science
Research Council. He has long-established links to two biotech companies:
Innotech and Diatech. He made a significant investment in the US biotech
firm Paradigm Genetics just weeks before taking up ministerial office.
Innotech Investments Ltd, a firm funded by Lord Sainsbury, along with two
other major investors, put a total of �8 million into Paradigm.

Innotech controls Norfolk-based Elite Seeds and Floranova, a seed and plant
distribution company. Both are developing genetically modified plants.
Gatsby, a charity established by Lord Sainsbury, has put over �2 million a
year into establishing the Sainsbury Laboratory in Norwich, where research
into genetically modified crops is carried out. The laboratory also
receives more than �800,000 a year in funding from the Biotechnological and
Biological Science Research Council, for which Lord Sainsbury is
responsible as Minister.

Just days before taking up his ministerial post, Lord Sainsbury lent �2
million to Diatech, which own patents on key gene technologies, to help
them buy an exclusive office property in Westminster, close to Parliament.

On his appointment Lord Sainsbury placed his huge financial means and share
holdings into a "blind trust", which is supposed to preclude any charge of
conflict of interest. Although technically he no longer exerts day-to-day
control over these assets, they remain his property and he receives all the
benefits and profits they accrue.

The supermarket tycoon has given Labour more than �3 million since 1994,
helping to pay off their �1 million overdraft incurred after the 1997
election campaign.

New Labour came to power promising to be "squeaky clean", against a
background of various corruption scandals that had wracked the previous
Conservative administration. Since then it has been hit by successive
scandals, such as that involving a �1 million donation by Formula 1 racing
chief Bernie Ecclestone prior to legislation being drawn up exempting the
sport from a ban on tobacco advertising.

Two ministers have already been forced to resign for financial arrangements
that reflected badly on the government. The Paymaster General, Geoffrey
Robinson, stepped down after he was revealed as the generous benefactor for
several other Cabinet Ministers to whom he had either loaned money or
provided funds for their offices while in opposition. Blair's closest
confidante, Peter Mandelson, was forced to resign from the Department of
Trade over his �400,000 low-interest loan from Robinson.

This has only strengthened Blair's determination to defend Sainsbury's
position in government. A column in Saturday's Telegraph penned by Blair
categorically states, "There is no conflict of interest in David
Sainsbury's position: he has nothing to do with the licensing of GM foods."

Blair's list of reasons for ignoring the public outcry over genetically
modified food reveals the authoritarian character of his administration:
"The first is the importance of the Government not yielding to an
orchestrated barrage on an issue of long-term importance.... The second is
that we should resist the tyranny of pressure groups."

The issue of "long-term importance" is the multimillion pound investments
by the biotech industry in Britain, encouraged by up to �15 million in
government handouts. The "tyranny of pressure groups" are the worries which
are expressed by tens of thousands of consumers who do not wish to eat GM
food, given the conflicting scientific evidence.

A poll of Telegraph readers returned 74.3 percent who thought genetically
modified food should be banned. The BBC News Online web site reported it
had "received a flood of emails from worried users--many calling for
improved food labelling. Others simply wanted an all-out ban on GM foods".
Over 80 percent of those who have responded to the site say they would give
GM food a "wide berth". The Independent on Sunday found that 68 percent of
those questioned in their survey were fearful of eating GM foods, with over
75 percent favouring a ban until more research proved them safe.

In the face of such widespread concerns, it is significant that Blair was
not alone in rushing to the Lord's defence. After spearheading the attacks
on Sainsbury for most of last week, the Guardian abruptly changed tack. An
op-ed piece on February 18 by senior political columnist Hugo Young is
revealing, both for its abject defence of the right of such exorbitantly
wealthy individuals as Lord Sainsbury to sit in government, and for its
high-handed dismissal of the genuine concerns of ordinary people. It
pinpoints a growing fear among the political elite that wide layers of
society view both the government and big business with increasing mistrust.

Unable to overlook the fact that just such a series of scandals involving
wealthy Cabinet members has affected the public perception of Labour, Young
writes, "The financial nexus is supposed to be all-polluting and uniquely
compromising. This is a given of every British discussion of how ministers
should be expected to behave, and it is a plausible assumption."

Plausible, but wrong according to Young, who makes an unabashed defence of
the democratic merits of wealth and privilege. "It cannot be conclusive,"
he writes. "A poor man might be vulnerable. With personal assets of
reputedly �3,300 million Sainsbury is the richest person in the country.
Money must long ago have ceased to be the prime, or indeed any, concern of
such a Croesus. In a rational world, this would undermine the simplistic
assumption made by the multitude that wants to drive him out of government
because of conflict of interest" [emphasis added].

Young's criticism of the media over its handling of the Sainsbury affair is
again directed against allowing any expression of popular sentiment to
pollute the reified world of official politics. "The public--this
mysterious entity, summoned at the whim of the media that can just about
genetically manipulate its every reaction--don't see it that way. Sainsbury
may be clean, but it doesn't look good. However useful he may actually be,
out he must go, to propitiate the gods of populism, infused by
simple-minded prejudice though they may be."

It is this mutual defence of privilege and wealth and hostility to the
social interests of ordinary working people that has brought the government
and its occasional liberal critics together once more.

See Also:
International scientists raise concerns over genetically modified food
British Labour government rushes to defend biotech industry
[17 February 1999]
BSE / CJD & Food Safety Issues
[WSWS Full Coverage]



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