Rafi watched as the PM was forced to pause as the House reverberated with retorts of: ‘Shame, shame!’ The noise grew to a crescendo, as the displeasure was voiced in no uncertain terms.
‘Silence, silence!’ boomed the Speaker of the House.
The PM continued. ‘MI5, working with the City of London police force, have identified over 300 well-connected individuals who were on the terrorists’ payroll, directly or indirectly.’
More gasps were clearly audible.
The PM paused and looked around the House. ‘It is with sadness and displeasure that I have to report to the House that six members sitting in this Chamber succumbed to the terrorists’ financial advances and thus became part of their network.’
A shocked silence gave way to calls for justice to be done. It took the Speaker a full four minutes to suppress the noise before the Prime Minister was able to be heard again.
‘I should remind everyone that under British Law a person is innocent until proved guilty. Sergeant-at-Arms, are you and your colleagues ready?’ enquired the Prime Minister.
‘Yes, sir!’ came the clear reply.
‘Are you in possession of the list of the Members’ names, for whom arrest warrants have been issued by the City of London police in connection with aiding and abetting the terrorists’ attacks at Stratford and other locations around the UK last Friday?’
‘Yes, sir!’
‘With the Speaker’s permission, I would ask you, please, to proceed.’
The PM sat down while the sergeant-at-arms – the head of Parliament’s police force – walked over and passed the arrest warrants to the Speaker, who looked at the papers and then solemnly asked her to proceed.
The Members’ names were slowly read out one by one. They were not in alphabetical order, which only added to the dramatic tension. The six included a newly appointed junior minister and a backbench MP from the Government’s party, an MP from each of the two main opposition parties and two MPs from the smaller parties. Protests of innocence rang out around the Chamber. Shock and incredulity spread around the House, as Members who had hitherto been seen as whiter than white had their names called out. Only one MP put up a real struggle, whereas the others left with whatever dignity they could muster.
The Prime Minister watched as the door closed behind the last to be escorted out. The hubbub and mutterings gradually subsided. ‘If the Speaker will permit, it would be helpful if the Chancellor of the Exchequer could now complete his outline of the Government’s financial proposals, before he and I put ourselves before the House to answer questions.’
‘Agreed. Pray continue.’
Rafi was on tenterhooks. How much of their advice would the Chancellor take on board? He looked at the faces of the opposition MPs on the TV screen. There was a look of bewilderment.
‘Thank you, Prime Minister,’ said the Chancellor. ‘I have outlined a number of initiatives to enhance economic activity. I will now turn to our proposals of how the Government is to deal with the huge costs associated with the Stratford disaster.’ He paused and then went on, ‘As Members are no doubt aware, the credit crunch and the various state bail outs have necessitated significant Government guarantees and a substantial increase in borrowings. We shall not be undertaking any further borrowings. Indeed, as things stand it would not be possible to do so without, risking the UK’s credit rating, and triggering steep rises in interest rates and gilt yields. This would be very counterproductive.’
There was utter disbelief on the faces of those opposite him.
‘So how then can we meet these new and very large financial liabilities?’ The Chancellor paused whilst those in the Chamber were left to imagine the starkness of the position. ‘I am pleased to report that we have a plan. Under this plan the costs associated with the disaster will be met via the issue of shares in new Government Real Estate Investment Trusts – REITs. The value of the public sector’s property and tangible assets is around?900 billion, or thereabouts. A proportion of these assets will be transferred into these Government REIT vehicles, which will be listed on the London Stock Exchange. We will compensate each and every person who lost their health, their home, their possessions or their business as a result of the terrorist attacks by transferring to them shares in the Government REITs. A cash alternative will be provided by a consortium of banks who will offer a cost-effective trading facility.’
‘The sums involved will be large – in addition to the compensation costs there are a number of other significant costs, such as the decontamination and decommissioning costs of our nuclear power stations and the payment of guarantees… At present, the best estimate I have for Stratford and the associated costs is?195 billion. A full breakdown will be published by the Treasury in the next twenty-four hours.’
There were gasps around the Chamber – the figure was far larger than anyone had expected. The House fell silent once more and the Chancellor continued. ‘I also propose to use part of the proceeds of the REIT share sales to repurchase long dated gilts,’ continued the Chancellor.
Strike one for the terrorists, Rafi thought. This would underpin gilts prices and be the first nail in their financial coffin.
‘The Treasury’s best estimate is that the cost of the dividends on the Government REIT shares sold to third parties will be no more than ?1.5 billion for the next fiscal year, rising to?3 billion in the following year, and will therefore be well within its scope to manage, without recourse to rises in national taxation.’ He paused momentarily and looked at the shadow chancellor opposite him.
Strike two: the Government funding requirements would remain on track. The second nail in the terrorists’ financial coffin has been hammered home, thought Rafi.
‘I shall also be introducing proposals which will allow pensioners and those planning for their retirement to invest in London listed REITs as an alternative to annuities. This will provide the REITs market with liquidity. Furthermore, I am advised by leading actuaries that the yield advantage of REITs over gilts and their inflation hedging characteristics will reduce the deficits of many pension funds.’ The Chancellor let those around him take in what he had said about Government REITs. He now had to move on to a particularly difficult area.
‘Our economy,’ the Chancellor continued, ‘our financial service industries, the City of London and our currency were badly bruised by the recent banking crisis and will be further injured by the nuclear disaster. To rebuild them we need a period of currency and interest rate stability. It is well known that the five criteria for our entry to the Euro have been long debated; this debate has been against the background of a strong currency and a positive economic outlook for the UK. Some eminent economists have argued that Stratford has materially changed the risk-reward relationship. They have advised me that the risks to our well-being, and to our economy, of being in the Euro are now significantly less than if we were to go it alone and keep Sterling.’
‘Wait for it…’ thought Rafi.
‘I have considered their arguments and have concluded that Sterling is part of our heritage, our identity, and our economic independence, and it should only be given up in extremis. So, in how desperate a position do we find ourselves? We have found a workable solution to meet all the costs associated with Stratford and this will inject billions of pounds into our economy. And we will make a start at reducing the scale of unfunded public sector pensions, which will improve the Government’s finances. The introduction of not-for-profit corporations will make our public sector services more efficient and will reduce the need for future tax increases.’
The Chancellor stopped and looked around the Chamber. People were on the edge of their seats. Back in the Ops Room Rafi suddenly wasn’t sure what to expect.
‘On the other hand, I have had to consider how much damage speculators might cause if they try to decimate our currency. Therefore, whether or not we join the Euro rests on whether or not we can hold our currency stable.’
The tension was palpable.
‘Early yesterday, senior representatives of the Bank of England flew out to meet with the largest international Central Banks to ask for their help in supporting our currency and to determine the level at which support would be forthcoming. Without this support we would find ourselves in exceptionally difficult times and joining the Euro would become a necessity. The results of these deliberations should be available to me now.’
There was movement behind the Chancellor. He turned round and was passed a large white envelope by the PM. He opened the envelope, pulled out two sheets of paper and read them. His face gave nothing away, but before he spoke, he pulled out a handkerchief and mopped his brow.
‘As of ten minutes ago, the Federal Reserve of America, the European Central Bank, the Chinese, Japanese, Indian, Saudi, UAE, and four other Central Banks have all agreed to support and be aggressive purchasers of Sterling, until such time as the UK economy has recovered from the recent catastrophe.’
Sighs of relief were heard around the Chamber.
‘The support level has been set at a figure four percent below Sterling’s trade weighted exchange rate as at close of business on Thursday evening.’
The Treasury had taken Aidan’s brief and added their own magic – Sterling was to remain independent! They had done a superb job. Rafi looked at the ceiling, let out a small whistle and smiled. Strike three! Sterling was to be protected. The third and final nail had been hammered home. The terrorists’ positions in the derivatives markets had become untenable and they would be sitting on truly massive losses when the market reopened in the morning!
A weary, but relieved-looking Chancellor surveyed the packed House of Commons. ‘Details supporting the initiatives I have set out this afternoon to the House will be published as soon as is practical – the printing presses are running as I speak. The events of the past few days have required much soul-searching and reprioritising.’ He paused and looked across at the shadow chancellor. I commend these proposals to the House.’ He sat down to growing applause from the House, which was taking its time to assimilate all he had put before them.
The Prime Minister rose to take his place at the dispatch box. ‘If the Speaker will permit me, I should like to tidy up a few loose ends. The reshuffle I spoke of earlier will be far-reaching. I have scheduled meetings with the leaders of the main opposition parties for later this evening. I will be speaking with many of you over the next twenty-four hours. I have received assurances from the party leaders sitting opposite me that they will place the interests of the country first.’
The PM paused for dramatic effect. ‘Where spin rules, reason is wanting, honesty is wanting, public service is wanting and the role of this House is overshadowed. Spin and self-aggrandisement are unacceptable. We owe it to the people of this country to consign spin and subterfuge to the past.’ The PM paused and looked across at the opposition benches.
‘It can be expected that members of competing parties will find themselves working together running the Ministries of State. Undoubtedly, there will be differences of opinion over some issues, but this should not stop efficient Cabinet Government. This House, its committees and the Upper Chamber will have the important role of scrutinising, improving and approving the proposals put before them. The Government has many difficult decisions to make in order to steer our country forward in an appropriate direction. What I am proposing is a move away from presidential-style politics to one where the Government is, as it was decades ago, fully accountable to Parliament. Our collective aim must be to get things back on to an even keel, to rejuvenate our economy and to rebuild our damaged international reputation. I commend these proposals to the House.’
With that the PM sat down to applause from all corners of the Chamber. He looked exhausted.
The Speaker called for the Leader of Her Majesty’s Opposition. Silence returned to the Chamber as he stood up and raised aloft a pile of papers.
‘I thought I’d been well-briefed by my team when I came to the House this afternoon.’ Slowly and theatrically he lowered the pile of papers, turned and placed them where he had been sitting. ‘I won’t need them.’ He looked across at the Government benches. ‘If my sources are correct, the Prime Minister has personally been working non-stop for the past three days as part of the effort to prevent the terrorists’ attacks, for which I thank the Honourable Member. I shall be meeting with him later today and again tomorrow. Following these meetings, I shall report back to this House any concerns I might have. In the meantime there is much to digest and, in the circumstances, it would be churlish of me to find fault for the very sake of finding fault. The two Honourable Members opposite me have, with great openness, sought to provide leadership and the wherewithal to enable our country to extricate itself from the horrendous tragedy of Stratford.’ He cast his eyes upwards towards the television camera.
‘I should like to pay my respects to all those who have lost and those who will lose their lives as a result of this nuclear catastrophe, and to thank all those in the emergency services, the armed forces and the intelligence services who have helped in our hour of need. I’d like to express my sympathy to all those who lost their homes or businesses in the “Isle of Stratford”, and to thank all those people and companies who helped selflessly.’
With that, the leader of the official opposition party sat down. The eyes in the House, as if following a tennis ball at Wimbledon, moved along the front row and focused on the leader of the third political party. It was his turn. He had a reputation for holding strong environmental views and a nuclear disaster was something he had warned against over many years. Would he use the events of last Friday to put the knife in? So far, the Home Secretary, a couple of lower ranking ministers and a number of quango employees involved in the nuclear industry had resigned. Would he try to make this a resigning matter for the Prime Minister as well? He stood up and looked around the silent Chamber.
‘It is on the record that my party places huge importance on environmental issues and has a profound distrust of matters nuclear.’
The House sensed that things were going to get interesting.
‘The Stratford nuclear disaster will haunt us for generations to come and its occurrence is political dynamite. Its consequences will be felt by every individual in this country. A lesser Government might have tried to spin its way out of the quagmire. Instead, this Government has come here today with a rational, inclusive and cohesive plan, which I believe will provide the foundations for this country to prosper again and will bring environmental and sustainability issues to the centre of our culture.’
‘I look forward to meeting with the Prime Minister later today and again tomorrow morning. I shall come back to the House and report more fully on these discussions and will raise such questions that I believe require answering.’ He paused and in a sombre tone added, ‘I, too, wish to pay my respects to all those who have suffered and to convey my great thanks to all those who have helped in this time of crisis.’ He looked around the House and sat down.
One of the colonel’s team was beckoning Rafi to pick up the phone nearest to him.
It was Aidan. ‘What do you think?’ he enquired.
‘That’s unfair,’ an ecstatic Rafi replied, ‘you’re the one with the screens in front of you.’
‘The currency markets are seeing big support for Sterling. Several early punters bet on it going through the floor and have had their fingers burnt. The support since the Chancellor’s statement has been unprecedented. And, Rafi, the terrorists and their banks will be sitting on some mind-bogglingly large losses when the derivatives markets open tomorrow! Did the PM and the Chancellor perform some kind of miracle, or what?’
‘Better than I could have prayed for,’ Rafi replied.
‘Basically, things are looking marvellous! Must dash – see you around Rafi. Bye.’
Rafi called across to anyone within earshot, ‘Aidan says that the
markets loved the PM’s and the Chancellor’s speeches. And that the terrorists and their bankers are being taken to the cleaners.’
Colonels Gray and Turner and their teams looked ready to drop. But they looked happy as they packed up their kit – the military operation was complete. The Wood Street Ops Room had served its purpose well.
Len Thunhurst and his team were jubilant. It was their turn now as the focus swung onto the arrest of those implicated with the terrorist activities.
A spreadsheet visible on a large screen showed the tally of the arrests. The table showing the names in red, blue and black – slowly at first, then more rapidly – turned yellow as the arrests continued.
Rafi looked up at the TV screen. A well-known political commentator was attempting to sum up the activities of the afternoon. The words unprecedented, remarkable and incomparable were used frequently in his report. He finished by saying that it had been a great day for British democracy.
Rafi looked back across the room. The large screen showed Operation Dry Clean to be progressing well. The number of arrests was continuing to rise swiftly.
Chapter 8
Rafi had had enough.
Kate walked over and gave him a hug. ‘Let’s get some rest. I’m no longer needed here.’
‘Fine by me,’ replied Rafi.
‘I’m afraid it’s time for normality to resume. No more chauffeur-driven cars. How about I get us a taxi?’
Rafi nodded. Fifteen minutes later they picked up an evening paper and got into the black taxi waiting for them. The February evening was bleak and cold.
‘Where to?’
‘Clapham, please,’ answered Kate.
‘The traffic is awful – it could take a while.’
‘No problem,’ Kate looked at Rafi. ‘Is it OK if we pick up our stuff from the Savoy tomorrow? I hope you don’t mind, but I rang the hotel and told them that they can let someone else have our room.’
Rafi smiled at her. ‘What else have you been up to?’
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