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Terrible Ten: Labour's Corporate Backers Exposed

30 Sep 2002

This week at the Labour Party Conference in Blackpool, Friends of the Earth will be presenting special awards to “environmentally destructive” companies seeking special favours.

FOE today publishes a report on a shortlist of ten companies funding the 2002 Conference through sponsorship of fringe events, receptions and exhibition stalls (copies of report available from FOE press office). Labour depends on commercial money for about a sixth of its total income (£6.2 million in 2001 out of a total of £36.5 million, not including large individual donations from business people and others). Sponsors attend the Conference, gaining easy access to decision makers and power structures. By sponsoring fringe events discussing issues relating to improving the environment, social issues and human health, corporate sponsors can also present themselves as responsible, caring and interested.

The Terrible Ten companies short-listed for the FOE awards are:

• Alstom – The construction giant involved in the planned Yusufeli dam in Turkey, the Three Gorges dam in China and other destructive projects
• Aventis - Aventis Crop Science, now Bayer Crop Science, is the only company seeking to license GM oilseed rape and fodder maize seeds in the UK. Now primarily a pharmaceutical company, it is sponsoring the Cancer Groups’ Reception, the Driving Up Standards in Cancer Care fringe meeting and the Fabian fringe meeting on reforming the NHS at the Labour Party Conference.
• BAA – BAA is backing the “Freedom to Fly” coalition, which is seeking a massive expansion of airport capacity all over the UK. BAA is sponsoring a 70s/80s disco and is exhibiting at the conference.
• BAE – BAE, one of the largest arms companies in the world, is exhibiting at the 2002 Conference and has sponsored events at previous conferences. It has close links with Government, with former senior executives running the Working Age Agency and Office of Government Procurement.
• Barclays - Barclays is sponsoring two fringe meetings at the 2002 Labour Party Conference; “A celebration of equality, celebrating diversity” and the New Statesman fringe “Whose Space is it anyway? Resolving conflict, regenerating communities”. Barclays has been heavily criticized by FOE for financial backing of Asia Pulp and Paper, one of the world’s most destructive paper and logging companies
• BNFL – British Nuclear Fuels Ltd is exhibiting at the Labour Party conference and has taken a page of advert space in the conference brochure, advertising the company’s contribution to reducing carbon dioxide emissions.
• Nestle - Nestle is sponsoring a variety of events including five Foreign Policy Centre fringe events. The company also has a half page advert in the event brochure and is exhibiting at the conference. Nestle is subject to ongoing boycotts because of its irresponsible marketing of breast milk substitutes
• Shell – Shell is sponsoring a fringe meeting on Corporate Social Responsibility at the Labour Party Conference. The world’s third largest oil company with operations in over 100 countries. Recent controversies include pollution around the company’s South Durban refinery in South Africa, and attempts (now dropped after campaigns by FOE and others) to explore gas in Kirthar National Park, Pakistan.
• Tesco – The company is sponsoring the National Reception at the Labour Party conference. Sir Terry Leahy, CEO of Tesco, sits on no less than four Government task forces. Tesco has been heavily criticized for commercial exploitation of UK farmers and food producers. According to a recent NFU survey UK farmers will get only £11 for a basket of food (beef, eggs, bread, tomatoes and apples) that will then cost the consumer £37 in a Tesco branch.
• Wessex Water - Wessex Water is sponsoring the Fabian Society Reception at the Labour Party Conference 2002. The company was formerly owned by Enron, before its spectacular collapse last year. It has subsequently been sold to Malaysian energy group YTL Power for about £1.2bn. In 1998, Wessex Water was ranked by the UK Environment Agency as the fourth worst polluter with five prosecutions resulting in total fines of £36,000. Environment Agency director of operations, Archie Robertson said “The companies included in our Hall of Shame have let down the public, the environment and their own industry.”

Friends of the Earth is backing a Corporate Responsibility (CORE) Bill, recently tabled in the House of Commons by Linda Perham MP (Labour, Ilford North). The Bill would ensure

• Mandatory reporting: Companies with a turnover greater that £5m must produce and publish reports on their economic, environmental and social impacts.
• Stakeholder consultation: Before embarking on major projects companies shall take reasonable steps to consult with and respond to affected stakeholders.
• Directors’ duties: Directors be required to consider the impacts of their business.
• Enforcement: The creation of a Standards Board to set standards, monitor and ensure the effective implementation of the above.

(More information on the Bill is available at www.corporate-responsibility.org/)

FOE Corporates Campaigner Hannah Griffiths commented:

“Our report exposes the environmentally and socially destructive activities of the “Terrible Ten” corporations present at this year’s Labour Party conference. These companies are pouring millions of pounds into Labour’s emptying coffers. They aren’t doing this out of some sense of political altruism. They are trying to buy access and influence. They will use it to try to block any moves to strengthen the law to hold them to account for the activities. Labour Party members should say no to the attempted corporate takeover of their Party, and use this Conference to make their views known to the Labour leadership.”

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