Stephen Kinnock: Another Clear-cut Clarification

By ‘Gammel Dansk’, assisted by ‘Stan

 

Before we turn to Stephen Kinnock’s latest attempt to set the record straight about his past, here by way of an overture to the main show is a handy chronological summary of the schools saga.

  • Kinnock “rages” against private education, and the way it enables a privileged elite to buy its way into a better life makes him “extremely angry” (2009)
  • Kinnock and his wife send their elder daughter to a private school in Copenhagen (2010)
  • She later moves on to the even swankier Atlantic College (£28,600 a year) near Cardiff, partly paid for by the Danish taxpayer (2013-2015)
  • “Stephen Kinnock slams ‘misleading claim’ that his daughter went to a private school” (Western Mail, February 2014), failing to mention that his daughter was a pupil at Atlantic College.
  • “Stephen Kinnock ‘underestimated’ school fees for daughter” (Western Mail, March 2014). It’s all the fault of political opponents trying to undermine him, and oh yes, those fees were twice as much as he had previously said.
  • 23 July 2016 – Kinnock issues a further “clarification”, saying that he has “always been open about, and proud of, the fact that a vital part of Johanna’s education took place in Wales”.

The ink had barely dried on that before Kinnock was busy banging out another “clarification” to Twitter users who were asking him about his tax affairs in Denmark.

According to Stephen, it was all old news, very simple and clear cut:

Kinnock explanation
CLICK TO ENLARGE

Ask anyone in the Danish media or bewildered members of the Danish public who tried to follow all the twists and turns of this byzantine tale over several years, and the picture that emerges is very far from simple.

A Google search on the words “Kinnock skat” (Danish for ‘tax’) returns 56,500 entries, and that is just the tip of the iceberg.

Why, for example, did Kinnock and his wife tell the press within days of the story breaking that he was about to file a tax return in Denmark, and would be paying back taxes as well as liabilities going forward? And why did the couple engage a top tax lawyer who fought tooth and nail to get him off the hook?

“I want to pay tax in Denmark”

Seven days after  the article Kinnock mentions on 23 June 2010, the Danish press was ablaze with the story. On that day, the Danish national news agency, Ritzau, carried a report quoting various reputable sources, including Berlingske Tidende, a leading quality daily, saying that Stephen Kinnock had agreed to pay tax in Denmark.

Here is one of the many press reports from the time.

“After a week of news headlines, the Social Democrats’ leader, Helle Thorning-Schmidt, is caving in: her husband wants to pay tax in Denmark with retrospective effect, says Berlingske Tidende.

“He will pay tax in Denmark for the first time, and the couple promises that he will continue to do so in coming years.”

At the time Kinnock was working in Geneva, but the family home, his wife and children were in Copenhagen.

Thorning-Schmidt told the press that the couple believed that they had always acted correctly, and that they had contacted a tax lawyer who confirmed their interpretation, “but there are some grey zones in all of this, and we want to steer clear of grey zones. We have therefore chosen to go the whole hog and pay tax in both Denmark and Switzerland.”

On second thoughts…..

The lawyer, Frode Holm, told the press that the grey zone arose because Kinnock had not just regularly spent time at home in Denmark, but had also conducted business meetings there.

The larger than life Frode Holm was not just any old tax lawyer, but was reckoned to be the very best in the country, and famous for performing miracles for very rich clients who had run into a spot of bother with the taxman, as explained by Politiko, a part of the Berlingske media group, here.

One of his cases is said to have involved a businessman who was facing a tax bill of Dkr 1.9 billion (around £260 million). Holm turned it round and secured a rebate of nearly £900,000 for his client.

Frode Holm 2

The sums involved in the Kinnock/Thorning-Schmidt case were peanuts by comparison, but Helle Thorning-Schmidt had her eyes set on becoming Prime Minister, and so Holm’s job was partly to ensure that no political damage was inflicted, with zero tax liability for Kinnock a bonus.

The taxman enters the bedroom

This was the beginning of a saga which was to run on for nearly four years, and Frode Holm was to hit the headlines spectacularly in the autumn of 2012 when it emerged that he had told the tax authorities two years earlier that Stephen Kinnock was gay or bisexual.

Holm claimed that he had done this to explain why Kinnock’s wife did not want to go to a meeting with the tax authorities, because “she (Helle Thorning-Schmidt, Ed.) does not want to sit here and have to explain their personal circumstances”.

Holm’s claim that it was he who set the rumour rolling was later disputed by others involved in the case, and this aspect of the story grew legs and became a convoluted saga in its own right. However, if Holm’s version of events was correct, several mysteries remain. Was he just making it up, and were his clients aware of what he was doing from the beginning? If not, when did they become aware of what their lawyer was saying?

When he was asked in October 2012 whether he believed that Kinnock was gay, as he had told the taxman, Holm replied “no comment”.

To be fair to the Danish press, journalists became aware of the rumours surrounding Kinnock’s sexuality early on, but decided that this was a private and personal matter. It was only towards the end of 2012 when it became clear that the issue was so closely bound up with his tax status that the floodgates opened.

The problem confronting the couple boiled down to precisely how many days Kinnock had spent in Denmark. If it was less than 180, Kinnock was not liable to Danish tax.

Family values

The trouble was that in order to stress their credentials as a normal, close family, the couple had previously given interviews to a whole series of newspapers, magazines and authors saying that Kinnock spent several days with his wife and children  each weekend at home in Copenhagen. If it was true that Kinnock had spent four days at home each weekend, Friday to Monday, he would be liable to tax.

On 16 September 2010, the Danish tax authorities concluded that Kinnock had not spent more than 180 days at home, and was therefore not liable to tax in Denmark. As we shall see, the decision was by no means straightforward.

But the affair had only just begun because leaks and attempts by political opponents to exploit the tax question later led to investigations and an inquiry, during the course of which various previously confidential documents became public.

A hair’s breadth

It emerged that Kinnock had only narrowly escaped having to pay tax, and that the tax office had reinterpreted its own rules when it reached its decision. Had the rules on matters such as responding to business e-mails and meetings while in Denmark not been relaxed, Kinnock would have clocked up more than 180 days.

The decision has since cost the Danish taxman dear.

In another high profile case, Camilla Vest, a Danish model, and her husband Peder Nielsen, boss of the Danish shipping conglomerate Maersk, were found guilty in November 2011 of tax evasion and sentenced to 21 months in prison and a fine of DKr 6.6 million (approximately £750,000). The verdict was  overturned a year later, with the tax authorities’ ruling on the Kinnock case playing a significant role in the court’s decision.

Thriller

Kinnock Borgen

Fans of  the Danish political thriller Borgen will probably be wondering where fiction ends and reality begins by now. When Kinnock himself was asked what he thought about the TV show, he said that he had enjoyed the first series, but had found the second too far-fetched.

In reality, the scriptwriters probably concluded that having a woman prime minister married to the “Socialist” non-domiciled scion of an ennobled British political dynasty embroiled in scandals about his tax affairs and private schools, with a maelstrom of rumours about his marriage and sexuality, would have been dismissed by viewers as too bizarre to be believed.

But if we are to believe Stephen Kinnock, who has probably calculated that Berlingske Tidende, Ekstra Bladet, BT and the rest of the Danish press are not widely read in Port Talbot, it’s all very simple and clear-cut.

We await the next clarification.

A Fairytale Prince and Princess and a Web of Golden PR

BY A GUEST WRITER, ASSISTED BY ‘STAN

(illustrations by Jac o’ the North)

Revelations that Stephen Kinnock and his wife Helle Thorning-Schmidt sent their elder daughter Johanna  to private schools are making waves in both Denmark and Wales in a tale so tangled that even Hans Christian Andersen would have cried the Danish equivalent of “WTF?”

So if you are sitting comfortably, let’s begin at the beginning. Well, sort of.

In Denmark private schools are heavily subsidised by the state which provides up to 87.5% of their funding, leaving parents to pay relatively modest fees by UK standards.

Private education has long been a contentious issue on the left of Danish politics, with the Social Democrats  as ambivalent about it as their British counterparts in the Labour Party. Senior Social Democrats who have sent their children to private schools have attracted criticism from sections of the party, but it is not party policy to abolish private education, and unsurprisingly given how many of its top brass use private schools, the party now takes the line that it is a matter of individual choice.

Kinnock and Thorning-Schmidt have two daughters, and it was long their policy to keep their children out of the public eye. Their privacy was respected by the Danish press, to the extent that when Johanna’s education became an issue, the press had no recent pictures of the family. As we shall see, that changed when Stephen Kinnock launched his campaign to become Labour’s candidate for Aberavon, and was keen to stress his family values.

Non-dom

Kinnock, now 46, has an impressive back catalogue of controversies, and in Denmark none was bigger than the row over his non-dom status, despite being married to the country’s Prime Minister and having his family home in Copenhagen.

The tax row and the investigations and official inquiries which followed it ran on for years, finally coming to an end at around the time Kinnock was seeking to become Labour’s candidate in Aberavon. For those interested, a summary of this bizarre affair can be found here.

Certainly, media interest in his tax affairs gave Kinnock invaluable experience in how to deal with the press and answer awkward questions. Not only did he escape ever having to pay a penny in tax in Denmark, but the row over his conduct and his tax avoidance did not surface as an issue when he launched his campaign to be selected in Aberavon.

What questions Kinnock did face concerned his choice of school for his daughter Johanna, and here again lack of scrutiny by the UK media and a thick coating of Teflon served the Red Prince well.

The timings of events and revelations are important in forming an understanding of how, possibly with quite a lot of luck, possibly with skillful news management, and possibly a conspiracy of silence from some in the media, Stephen Kinnock and Helle Thorning-Schmidt were able to face elections in their respective countries without their daughter’s exclusive private schooling becoming an issue.

What Johanna did next – a timeline

Johanna Kinnock begins her secondary education at a state school in Copenhagen, but moves “for private reasons” to the rather more exclusive private Ingrid Jespersens Gymnasieskole which she attends between 2010 and 2012.

Fees at the school were DKr 1,500 per month (around £165), although as we shall see, Kinnock later suffered a lapse of memory about how much the family had actually paid.

In 2012 Johanna, then aged 16, is on the move yet again, this time to Hellerup Gymnasium, a state school where she stays for just one year.

2013 – Johanna packs her bags and heads off for the exclusive Atlantic College in the Vale of Glamorgan, where fees are currently £28,600. There she completes her secondary education in 2015, a year when both of her parents fight general elections in their respective countries.

A recent article in the Danish tabloid Ekstra Bladet (see translation below) suggests that Kinnock and his wife would have paid around £12,000 a year, including a £10,000 voluntary contribution based on his wife’s income as Prime Minister. The rest was paid by the Danish taxpayer under a grant scheme set up to help parents fund the cost of education abroad, and various unspecified “funds and sponsors”.

Exstrabladet

November 2013 – Hywel Francis announces that he will stand down at the UK general election in 2015, and so the race to find his successor begins, culminating in a vote by the constituency party on 22 March 2014.

There were seven candidates, of whom the early favourites were Jeremy Miles, a lawyer from Pontarddulais (now Labour AM for Neath), and Mark Fisher, local Unison official. Miles was understood to have won the backing of six local branches of the party and have had a clear lead over Fisher.

Somehow Kinnock came through with a late run to beat Miles by a short nose (106 – 105) on March 22, after a recount. This article from Left Futures by Jon Lansman – founder of Momentum – gives one explanation for how this happened.

In the run-up to the vote, Kinnock’s opponents began asking questions about Johanna’s schooling in Denmark, apparently unaware that she was by then living and studying just a few miles away at Atlantic College.

The Western Mail first picked up on the story on 19 February:

Stephen Kinnock slams ‘misleading claim’ that his daughter went to a private school

In this article Kinnock, with breathtaking chutzpah, told Martin Shipton that Ingrid Jespersen’s Gymnasieskole had cost only around £80 a month, and he added that she had gone on to “the equivalent of a sixth form college in Denmark which is wholly state funded”, neglecting to mention that she had since gone on from Hellerup Gymnasium to the £28,600 a year Atlantic College.

The very careful wording which obfuscated Johanna’s whereabouts seems to have put the media hounds off the scent, although they quickly discovered that fees at Ingrid Jerspersens Gymnasieskole were twice the level that Kinnock had claimed.

On 1 March 2014 Kinnock was back in the Western Mail to, ahem, “clarify” matters.

Stephen Kinnock ‘underestimated’ school fees for daughter

The newspaper article talks about attempts by Kinnock’s political opponents to undermine his campaign, and quotes Kinnock as follows:

“This was a fast-moving story and I was very keen to clarify some of the misleading things that were being said about my daughter’s schooling as rapidly as possible.”

Note the implication that it was other people who had been saying misleading things about his daughter’s schooling, rather than Kinnock himself.

The very next day, 2 March 2014, a Danish journalist working for Ekstra Bladet quoted a conversation he had just had with Shipton of the Mail:

‘”I have spoken to people in the party, and they are not impressed by his inaccuracies. They believe that this could influence Stephen Kinnock’s chances”, says Martin Shipton who is editor of the Welsh newspaper Western Mail which has reported on Kinnock’s misinformation.’

With three weeks to go to the crucial vote in Port Talbot, nobody seems to have picked up on the fact that Johanna was not in Copenhagen at all but just down the road. Another whole year and a bit later on 8 May 2015, and another Danish tabloid, BT, produced this very illuminating report just as the dust was settling:

This tender image is a rarity

The newspaper notes that Kinnock and Thorning-Schmidt had always been careful to shield their daughters from the media, so much so that BT had very few pictures of the two girls in its archive. All of that changed in March 2014 when Kinnock released a family portrait taken for use in his selection campaign, and Johanna is pictured again in the report cuddling up to her mother during the count on election night (7/8 May 2015).

The newspaper comments that this sudden change of tack was a strategic choice to portray the Kinnock Thorning-Schmidts as a family which sticks together, “something which means a lot in Wales”.

BT continues by recalling that Johanna had previously been in the limelight in Denmark when it emerged that she had been sent to the fee-paying Ingrid Jespersens Gymnasieskole, echoing a scandal which broke in 2010 when it emerged that a number of senior Social Democrats had children in private schools.

(Two revealing reports on the Kinnock’s attitude to private education appeared in the Danish publication BT; the first on May 9 2010; the second 11 June 2010; both updated 19 September 2012. The headline of the first translates as, ‘The truth about Helle’s spin’, the second, ‘Helle Thorning’s husband raging against private schools’. Translations (in summary) for both articles can be found by clicking here. Many thanks to our new Danish contact for the links, and to one of the authors of this piece for the translations. Jac)

Kinnocks normal

“Today Johanna attends an international high school in Wales, the UWC Atlantic College, which is close to where Stephen Kinnock  is living”, the piece says in conclusion.

Clearly, some in the media knew of Johanna’s whereabouts before the UK general election and probably before Kinnock was selected as Labour candidate for Aberavon. If the arrangements at Atlantic College had been known about, it is highly unlikely that Kinnock would have been selected, and if his handling of the affair had been known about, it would hardly have been a vote winner in Port Talbot in May 2015, come to that.

Instead, Kinnock based his campaign on family values, his close connections from his time at Xynteo with captains of industry, including Tata Steel bosses, and a promise to bring jobs to the town. Promises which were to evaporate after the general election even quicker than fairy dust.

Revelations that her daughter was attending a Dkr 250,000 a year school in Wales, partly at the expense of the Danish taxpayer, would not have helped Helle Thorning-Schmidt either when she faced voters in a general election on 18 June 2015.

Fortunately no hacks bothered to follow up on BT’s heartwarming report with its tender images.

Although the Social Democrats slightly increased their share of the vote, their coalition partners fared badly, and so ended Helle’s stint at the top.

But there is a happy ending because soon after resigning Helle landed the top job at Save the Children International in London, where her predecessor was reported to be earning £234,000 a year – rather more than the Prime Minister of Denmark.

Even more remarkable was that she landed the job despite coming under fire from, erm Save the Children among others, for implementing policies as prime minister which keep refugee children separated from their parents.

And there matters would have rested had it not been for wicked old Jac o’ the North spilling the magic beans on the whole convoluted saga a year later, with post-factual Kinnock claiming to have been open about his daughter’s schooling all the way along.

Labour and the Danish Social Democrats have come a long way since the days of the Little Match Girl who would now be facing deportation or arrest for pestering passers-by when she could go and get a proper job as a consultant.

*

Danish taxpayers pay for Helle and Kinnock’s daughter

Translation of an article which appeared in Ekstra Bladet  on 30 July 2016.

Danish taxpayers paid Dkr 140,000 (around £16,000) for the two years former Prime Minister Helle Thorning-Schmidt’s daughter, Johanna, attended Atlantic College in Wales from August 2013 to June 2015.

Annual school fees at the private school are £28,600 – around Dkr 250.000 – but Helle Thorning-Schmidt and her husband Stephen Kinnock did not have to pay that.

Instead, they paid between Dkr 18,000 (£2,000) and Dkr 88,000 (£10,000) a year to send their daughter Johanna to Atlantic College in Wales.

This information comes from the website of United World Colleges (UWC).

UWC sends 15-20 Danish high school pupils to one of the organisation’s 15 schools every year in  Europe, Costa Rica, India, Singapore, Swaziland, USA, Hong Kong and China.

The state paid Dkr 70,000 per year

UWC’s Danish website shows that the average fee per pupil is DKr 158,000 (£18,000) per year.

The Danish state contributes Dkr 70.000 (£8,000) towards the cost, a further Dkr 70,000 is provided by funds and sponsors, while parents contribute Dkr 18,000 (£2,000) a year.

  • UWC Denmark depends on donations from parents in order to give a place to young people a place at a UWC school, it says on the website.

Parents paid Dkr 18,000 per year

For this reason the organisation asks parents to make an additional contribution above the minimum of Dkr 18,000 per year.

  • UWC  has a limited number of full bursaries. If a household’s total income is less than Dkr 250,000 a year before tax, parents can apply for a full bursary. Other parents pay a compulsory family contribution of Dkr 18,000 per year, the organisation states on its website.

It is therefore clear that the  Thorning-Schmidt/Kinnock family paid a  minimum of Dkr 18,000 a year to send their daughter to Atlantic College in Wales.

UWC asks parents to pay additional contributions beyond the Dkr 18,000 to the organisation.

Tax deductions of Dkr 15,000 per year

  • If parents wish to donate more than the compulsory DKr 18,000 contribution, they may claim tax relief of up to DKr 15,000 per year. It therefore follows, the organisation says, that the more parents who donate money, the more pupils will obtain a place.

UWC therefore suggests that parents pay an additional contribution from their taxable income.

Atlantic College

UWC suggestion to parents

UWC’s proposals are as follows:

Parents with a taxable income of between Dkr 500,000 and Dkr 750,000 should pay between Dkr 15,000 and Dkr 45,000 per year.

Parents with a taxable income of between Dkr 750,000 and Dkr 1,250,000 should pay between Dkr 45,000 and Dkr 70,000 per year.

Parents with a taxable income of more than Dkr 1,250,000 should pay Dkr 70,000 per year.

As Prime Minister Helle Thorning-Schmidt earned Dkr 1,439,443.75 (£163,500) in 2013. Depending on her final declaration, she should therefore have paid an additional Dkr 70,000 to UWC.

Kinnock on Facebook

On his Facebook page Stephen Kinnock confirms that his daughter’s place at Atlantic College was partly financed by the Danish state.

  • Johanna’s stay at AC was partly financed under Danish rules governing grants for students studying abroad. The majority of AC’s students and those at other United World Colleges schools are financed by a mixture of state grants and national committees in their respective countries, Stephen Kinnock writes on Facebook.

Welsh blogger

He was reacting to accusations made by the Welsh blogger Jac o’ the North on his blog that Stephen Kinnock hid the fact that his daughter Johanna went to an expensive private school from Welsh voters when he was standing for selection for the Aberavon constituency in the spring of 2014 – a constituency which has returned a Labour MP since 1922.

Jac o’ the North says that Stephen Kinnock would not have been selected if Welsh voters had known that his daughter  Johanna was going to the expensive Atlantic College.

I answered questions

Stephen Kinnock confirms on his Facebook page that his and Helle Thorning-Schmidt’s daughter’s stay at Atlantic College was partly financed by the Danish taxpayer.

  • I was asked about and answered questions about her schooling in Denmark (where she attended the private Ingrid Jespersens School from 2010 til 2012, Ed.), Stephen Kinnock wrote, failing to elaborate whether he would have answered if Welsh journalists had asked him if Johanna had gone to an expensive private school in Wales.

*

Jac says . . . 

I still have difficulty believing that when Martin Shipton of Llais y Sais interviewed Kinnock in February 2014 he was unaware that the subject of the discussion, Johanna Kinnock, was already in her second term at Atlantic College.

Given Shipton’s support for the Labour Party, and remembering that his employers Trinity Mirror also support Labour, it could well be that the news was already circulating about Johanna but – perhaps as a favour to the girl’s grandparents – Trinity Mirror arranged for Shippo to ask the wrong questions in order to ‘settle’ the allegations of her being privately educated.

Kinnock family

But let me, for once, push aside my usual draught of vitriol and drink of the milk of human kindness, (God! I’m going some here) and give Shippo the benefit of the doubt, and more, extend that benefit to all the other journos in Wales.

It’s entirely possible none of you knew that the grand-daughter of the ultimate champagne socialists, Lord and Lady Hypocrisy, whose father was seeking election to a Welsh constituency, was being educated at a very expensive school a few miles outside Cardiff . . . but if so, what does that say about you as journalists?

Maybe you should stick to belittling Welsh identity. That seems to be all that most of you are good for.