Monday, December 17, 2007

HMRC to be fined £50Bn over lost CD's?

Norwich Union was fined £1.2m for putting 632 of its customers at risk of fraud according to Timesonline. I reckon that works out, pro rata at about £50Bn for the 2 lost CD's. I know it would be pointless fining them because its only tax payers money going round.

But wouldn't it concentrate a few minds if all, or at least some, was deducted from HMRC's Senior Managers' bonuses or index linked pensions? Better still if some of it was paid by their political masters as well, now that would set an interesting precedent and make them apply some oversight.

3 comments:

Mark Wadsworth said...

Good question, answer yes, although perhaps a few months in prison for gross dereliction of duty might be nice as well.

The Great Simpleton said...

Mark,

I tend to be at the so called "do gooder" end of the punishment spectrum when it comes to prison - I seen no point in jailing people who aren't a threat to society because of the cost of incarceration and the opportunity cost of them not working.

However I will make an exception for politicians and civil servants because there is no opportunity cost (they aren't generating wealth) and the cost of incarceration is propably less than paying for them and providing their salaries.

I suppose you could also argue that, by definition, politcicians and civil servants are a threat to society.

Mark Wadsworth said...

"I will make an exception for politicians and civil servants because there is no opportunity cost"

Tee hee, excellent point! There is an 'opportunity benefit' rather than an 'opportunity cost'!