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Jim Kenny/Copenhagen/Farmers'
Market/flood protection/holiday
19
December 2009
Hi all –
This is mainly just to wish every a happy Christmas.
However, a couple of items first:
1. Jim Kenny
As many of you will have heard, Cllr Jim Kenny
died recently. He was a councillor for Eastwood (outside my constituency
but in Broxtowe) and had contributed to the community as a town
and borough councillor for very many years. He was also a thoroughly
nice man – it's customary to say something like that when
people die, but I really never met anyone who didn't like him.
I went to the funeral yesterday, and was pleased to find an enormous
crowd (several hundred people) packing the church – a tribute
to his local popularity that he very much deserved.
2. Copenhagen
Unlike some commentators, I do think that climate
change appears to be a serious threat and that we have the capacity
to mitigate it, so I'm sorry to see the summit end without more
progress. While I wouldn't be totally negative about it –
there was a lot of commitment shown and the gaps narrowed substantially
– it's clearly not the deal that we need. There's a tendency
for this sort of thing to descend into finger-pointing, but that's
largely a waste of time. All we can really say is that we have
collectively to pick ourselves up and keep working till a deal
is reached.
3. Kimberley Farmer's Market
Just a word to thank everyone who made this
such a success, especially the indefatigable Cllr Richard Robinson.
I hope it will be possible to make this a regular event in the
future – if we can make it worth in December, it ought to
be possible in balmier times!
4. Attenborough flood protection
Since I've not heard anything for a while, I
rang the Environment Agency to see what's happening. The project
is making steady progress, but they are still reviewing the position
in Attenborough to see whether they can after all protect the
playing fields as well. They expect to complete the study of that
in March. If they decide it can be done, they'll submit a fresh
application after that. If they decide it can't, then they'll
press ahead with the original scheme. (My position remains that
I'll gladly support whatever leads to the fastest protection for
Attenborough and other areas threatened with flooding, so whichever
way they decide to go I do expect to support it.)
5. Holiday arrangements
I'm basically around till the 28th, though I
plan not to check email on the 25th! We're going to stay over
the New Year and in the first week of January in my cousin's little
converted windmill in South Devon – it's lost its sails,
sadly (it looks more like a lighthouse really), but it's a sweet
place with three rooms, one on each floor. I'll be back on the
8th. I'll check for emergencies via my Blackberry. My team will
have the office closed between Christmas and the New Year, but
it'll be open normally after that. Again, we'll try to check messages
from time to time – unfortunately, emergencies do happen
more often at Christmas than any other time, since normal services
become unavailable.
It only remains to wish you a very happy Christmas
and a merry New Year (it's usually that way round in practice,
isn't it?) ! I'll be in touch again soon after I'm back.
All good wishes
Nick
Climate change and Copenhagen/Class
and Eton/Europe and van Rompuy
5
December 2009
Hi all –
Catching up on three national controversies,
I'd like this time to talk about climate change, class and Europe.
First this week's friendly note:
"I think people in the constituency are
privileged to have the chance of keeping in place one of our MPs
who is genuinely committed to the job and the constituents, fully
deserving of our respect and admiration, and working to restore
fairness and integrity to parliament and our system of government."
Ruth Ledbury (longstanding Liberal Democrat supporter)
Trying to live up to that…
1. Climate change: what should Britain's position
be?
This is going to dominate the news in the coming
week. What should Britain's position be?
I understand statistics but I'm not a climatologist,
so I'm not going to offer my own interpretation, and I'm slightly
bemused by the way that some people read an article somewhere
and become instantly certain that it's the only possible truth.
But it's possible to make some objective comments:
• The overwhelming majority of climate
scientists, though not all, believe that there is a global warming
process in train, that human activity is mainly the cause, that
its consequences will be catastrophic, and that it's still possible
to ameliorate it, though not prevent it altogether.
• Scientists are not always right, and there are past cases
where the overwhelming majority view turned out to be mistaken
• If the perceived problem is to be tackled, it needs to
done globally. There are things that Britain can solve on its
own, but this isn't one of them.
Given this starting point, what should British
politicians say? It seems to me that we have to work on the assumption
for now that the scientific advice is correct. If it's correct
and we do nothing, we are quite literally betraying our children.
If it's incorrect and we take unnecessary action, we are spending
money that could have been spent on something else. That's a pity,
but not catastrophic, and the actions generally have some useful
benefits in themselves. For example, by switching away from fossil
fuels, we reduce carbon emissions, but we also reduce dependence
on imports of gas from places like Iran, Algeria and Russia whose
long-term amiability it is…well… difficult to guarantee.
There is a place here for Britain setting an
example and taking a lead, as we've done with the Climate Change
Bill, but primarily we need to do all we can to broker a global
agreement, since that's the only thing that will really work.
So even if a deal in Copenhagen depends on us making painful steps
ourselves, I'm in principle in favour of it (obviously we need
to look at the details).
All the main parties agree on this – David
Cameron commented similarly last week after a scientist was found
to have written cynical emails: Cameron simply said that the overwhelming
majority remained convinced of the danger. So it looks as though
the policy will be similar whichever party is in power, and on
this issue I agree with Cameron. But what about the sceptics?
These are grouped on the Right – UKIP and the BNP are opposed
to the whole idea, and David Davis and our local Conservative
Euro-MP Roger Helmer have broken with their party's position on
this. It's not obvious why this is – there is nothing especially
left-wing about worrying that we're ruining the planet, since
if it's true it'll be bad for everyone, left or right. But I think
they react against the messengers on this issue – because
the early campaigners were anti-capitalist greens, they feel the
whole thing is just a ramp of what they see as eco-nutters and
self-interested scientists after funding for their work.
One can never be sure about trends or about
science, as I said above, and we should continue to monitor the
latest findings. But I don't think we can responsibly ignore the
advice: the downside if we did and it was wrong is just too large.
2. Does background matter?
There's been a lot of discussion of Eton and
class in this week's press after Gordon Brown's throwaway remark
at PMQs about Zac Goldsmith's taxes, and I thought it might be
interesting to go a bit deeper.
To declare an interest, though I went to international
schools myself and my parents weren't wealthy, my wider background
is not very different to Cameron and his colleagues: my postwar
family has included a general, an admiral, a viscount, a senior
Tory MP, a senior judge and diverse other things that are generally
seen as posh, including a Scottish castle. None of that is (in
my view) something to be embarrassed about – you don't choose
your family, and they're simply a fact. In the same way Cameron
and Osborne and Goldsmith didn't choose where they went to school.
That said, one needs to be aware of one's limitations
and possible blind spots. I'm well aware that I don't know anything
from personal experience about growing up in hardship, not getting
a decent education, suffering from prejudice, being snubbed or
passed over for having a regional accent, and so on. So what I
try to do is listen to people who do have those experiences, and
to adjust how I deal with political issues to take account of
them. Nobody can have experienced everything – the important
thing, surely, is to be prepared to listen and take it in.
I don't think it's reasonable to have a go at
Cameron over his schooling, and I'm sure it gave him a useful
education. But there's a related political point that *is* reasonable.
He and his associates seem to me not to have evolved after they
left school, and to have difficulty in relating to people outside
their circle of experience. Why, for instance, are the Conservatives
still wedded to abolishing inheritance tax specifically in the
£700,000-£1 million range, at the same time as proposing
cuts to all kinds of everyday things? They know it's unpopular
and the number who will benefit is small. But they will be affected
and so, I suspect, will nearly everyone they know, so it looms
much larger as "an important thing to do in the first Parliament".
In the same way, when Goldsmith was asked about one of his tax
avoidance tactics, his spokesman said "It only saved a small
amount, £10,000 or something" – well, yes, I
suppose that's small if you're a millionaire, but if you're trying
to represent people it shows a tin ear to talk like that.
In short, it's not your fault if you're sent
to Eton. But if you want to represent people, you need to grow
beyond it.
3. Europe
I think there's something slightly ironic about
the press deriding the choice of a Belgian prime minister "whom
nobody has ever heard of". Why haven't we heard of the prime
minister of our nearest Continental neighbour? Because precisely
the same press never bothered to report anything about him, even
when his apparent talent for promoting compromise prevented what
appeared to be an imminent break-up of his country. He seems an
intelligent, moderate chap who is good at bringing people together
and doesn't have illusions of grandeur: I reckon he was a good
choice as European president.
But I'm cheerfully pro-European, like both my
opponents: my Conservative opponent went further than me at one
of our debates and said she'd support joining the Euro if business
wanted it (I might do as well, but only after looking at the overall
impact in detail and a straightforward yes/no referendum). So
if you're deeply sceptical about the EU I can understand your
feeling a bit unrepresented. What can I say to help?
Well, first, I'd like an EU that worked better
and more transparently. While it's obviously difficult to look
after 500 million people in a down-to-earth way that's easily
accessible to everyone, I do think that the EU institutions are
mainly comfortable in dealing with each other rather than engaging
with the wider public. I'd actually like to see direct election
of a European president – that would engage people and cross
national boundaries much more effectively than any number of agreed
joint
initiatives.
Second, the basic principle of the EU is `subsidiarity'
, that decisions are taken as locally as possible (i.e. nationally
or even at local council level). That seems to me a good idea,
but not one that is always followed in practice. I'm opposed to
`mission creep', moving the EU into deciding issues which are
really better considered locally, and almost every human organisation
in history has tried to expand its scope, so there's a genuine
risk there.
But yes, it's best to be honest: I'm a pragmatist,
and look at each issue on its merits, but basically I think it's
a good thing that we have in the EU an institution that helps
us take joint decisions for the good of the whole continent. And
if the new arrangements and the Belgian president will help that
work smoothly, I'm all for them.
As always, feedback welcome on these tricky
issues, with "NNTR "(no need to reply), please, if you
don't need a personal answer!
Best wishes
Nick
Sacking dissident advisers/Are
the County cuts right?/Amusing Tory leaflet
16
november 2009
Hi all –
Finally catching up after an exceptionally hectic
period. I'm on two committees which have been finalising very
large reports, and that's left less time to answer emails. Since
they come in at around 100/day, at one point 600 unanswered emails
had piled up – apologies to everyone who had to wait a couple
of weeks.
The committee reports are confidential until
published, but I'll give you a brief preview below – they're
both pretty interesting. I'd also like to discuss why I disagree
with the Home Secretary about scientific advice, comment on the
County Council's draft budget, and respond to an enjoyably bizarre
Conservative leaflet. And with the election now less than six
months away, I hope you'll forgive a small partisan innovation
– I'll be starting each email with a comment or two from
constituents who haven't up to now been associated with my campaigns,
mostly people who've rallied to the Independents for Palmer banner.
1. Quotes of the week
Professor Martyn Poliakoff CBE:
"I shall be voting for Nick as I consider
him to be a model constituency MP who strives to help with the
problems of constituents regardless of their political persuasion."
[For more about Martyn see tinyurl.com/ yg22mo9 ]
Sue Sambells:
I find Nick Palmer to be one of the few good guys around and even
though I disagree with many of the policies of our current government
I plan to vote for Nick, who I believe will best represent me
and my family.
2. Why the Home Secretary is wrong about advisers
Irritatingly, most of the debate about the firing
of Professor Nutt has divided on the issue rather than the principle.
People who think cannabis should be treated as dangerous tend
to sympathise with the firing, and people who think it's relatively
harmless tend to oppose it. On the whole I favour maintaining
the current classification of cannabis. But I still think it was
a mistake to fire Nutt.
First let me put the case on the other side
so you're aware of both sides. The issue of cannabis and ecstasy
classifications came up a year ago. Professor Nutt advised that
they should be downgraded as less serious, on the basis that many
other legal things are more dangerous such as alcohol and even
riding. The then Home Secretary decided she disagreed, because
she felt that the wider risks of relaxing controls on drug-dealing
were against the public interest. Even if Nutt's proposals were
approved, the drugs would still ne illegal, and therefore only
available from dealers, who would try to entice customers into
more dangerous drugs. Moreover, in some cases, the drugs do have
serious effects, and the fact that there are other dangers around
doesn't mean we should necessarily add to them.
Professor Nutt disagrees strongly: he feels
this is an example of illogical policy, and we always say policy
should be evidence-based. A dangerous drug should have a high
classification, a not very dangerous one should have a low one,
he argues; otherwise, the system isn't credible.
So far, fair enough – one can see arguments
on both sides, advisers advise, ministers decide. But after the
decision, Nutt continued to oppose it in strong terms, attacking
Ministers directly for not taking his advice. The then Home Secretary
said to him that she felt it was hard to rely on him as a confidential
adviser if he continued to campaign openly to reverse decisions
he disagreed with, and warned him that she would expect at least
prior notice of future attacks.
Some months passed and Alan Johnson became Home
Secretary. The policy continued unchanged, and Nutt returned to
the charge, writing an article again attacking the Governments
policy, again without prior notice. Johnson then pointed to the
earlier warning, said he'd lost trust in him and fired him.
When this was debated in the Commons, I was
(I think) the only Labour MP to criticise the decision. The point
isn't that I think Nutt is right – the wider social issues
seem to me important. But I believe it's absolutely vital that
governments of all colours get fearless independent advice, without
a hidden string attached that the adviser promises to shut up
if overruled. The point that I made is that the public needs to
hear from the advisers too. Most people don't really know the
pros and cons in detail, and advisory bodies help inform the public
debate. The right thing is not to try to muzzle awkward advisers,
but to have a range of advisers with different viewpoints, so
that it's clear that all the arguments are being properly considered.
I absolutely see that it's a pain in the bum
for ministers if their advisers publicly contradict them, and
a bit discourteous if no notice is given.. But the right response
isn't to fire them but to explain why their advice is not being
taken – then the public can reach a balanced view.
3. Why the County is wrong about the proposed
cuts
The County Council is currently consulting on
a range of very drastic budgetary changes. Many of you will be
aware of the proposals, but if not you can find them summarised
here:
http://tinyurl.com/yjftdla
with comments here
http://tinyurl.com/ycen5un
and
http://tinyurl.com/ye2gnlv
I'm not in favour of councils blithely spending
more every year. However, what seems to me objectionable is that
the council is spending more on itself – refurbishment of
offices, more paid positions for councillors – at the same
time as it's focusing on the elderly and disabled.
There is also one cut that's attracted little
attention – they propose to stop giving any public advice
to people about their entitlement to benefits. I know from my
work that the Benefits Advisory Service is a lifeline for people
who find themselves in a desperate situation for the first time.
I'm not talking about people who've lived on benefits for years
and know the system intimately, but people from women fleeing
from violent partners to people who suddenly lose their job and/or
their home due to the recession.
Save money yes – freeze higher salaries,
halt major new spending. But don't try to do it all at once, and
don't focus the cuts on the elderly and vulnerable. I'll be submitting
an objection, and you might want to comment to your county councillor
too.
4. Two simmering committee reports
The first report, due out in a week or so, in
Tony Wright's Parliamentary Reform committee. I was elected to
this by secret ballot of all Labour MPs (each party elected its
own representatives) , and we have a mandate to report on three
things:
- Who controls Parliamentary business? How can
we ensure that governments don't suppress debate by procedural
means, and yet ensure that if there's an elected majority then
it's not filibustered into impotence?
- How can the wider public influence what Parliament
debates? If a million people want something debated that all parties
find awkward (e.g. withdrawal from Afghanistan) , how can the
public ensure that their issue gets heard?
- How can Select Committees be strengthened?
At present, membership is usually decided by the whips of all
parties, weakening their independence and credibility.
We had an intense few weeks on this, with some
votes on especially controversial issues, but I think the outcome
is good. You'll see it soon.
The second report, due out in a few weeks, is
from the Justice Select Committee. We set out to answer the question:
Under what circumstances is prison the most
cost-effective way of deterring repeat offending, and are there
better alternatives?
We heard extensive evidence that short prison
sentences for relatively minor crimes are worse than useless (the
offender meets more serious offenders and learns how to get deeper
into crime), but what might work better? Could the prisons be
reserved for the more serious offenders who deserve longer sentences?
We studied experience from many other countries, with penal systems
from the harshest to the most liberal, and are coming up with
interesting conclusions. Expect this report before Christmas.
5. Struggling to manage on £138,509
There is an entertaining Conservative leaflet
going out claiming that I have a `huge financial advantage' and
explaining that Broxtowe Conservatives have `only' had £38,509
of help from the central party, with other costs covered by three
local members. To be more precise, my understanding from Conservative
friends is that one of the donors has chipped in £100,000.
To put this in perspective, the largest campaign
fund donation from an individual that I've *ever* had is £100,
and the money I get from the national party is zero. The idea
of their giving us £38,000 or an individual giving us £100,000
is an idyllic pipe-dream. But if it ever happens, I promise that
I will never complain that my opponent has a `huge financial advantage'.
It's on the lines of Goliath complaining that David has an excessively
large sling, and frankly they're living on a different planet.
There is a certain irony in being so well off as to be able to
afford a special expensive leaflet to say how poor you are.
A second theme of the leaflet is that it's wrong
that I employ supporters on my staff, including two councillors
(2-3 days a week) and my wife (8 hours a week). The point I'd
make here is that in their working time they are restricted to
non-partisan work, primarily helping constituents who raise problems
with me or helping me deal with local issues. It's very useful
to have people inside the council for this, since a great many
of the issues relate to the council – e.g. the whole area
of planning – and they know who to talk to. My wife, who
is a freelance editor, is able to help at weekends and late at
night, which as some of you know is when I get most of my constituency
correspondence and emails done. The Kelly Report has said this
should be phased out, and of course we'll comply, but I admit
that I think it's a pity, as it'll simply make me slightly less
efficient.
What I wouldn't do is employ unsuitable people
because they were supporters. What often happens is that I recruit
someone because they're good, and after they've worked with me
for a while they become active supporters in their free time.
It'd be a bit sad if it was the reverse (`now I've worked with
him I know he's really rubbish').
Finally, the leaflet has a go at my use of the
Communications Allowance. This has been available to allow MPs
to send non-partisan circulars to constituents. You can find examples
here:
http://groups.yahoo.com/group/BroxComms/message/1
and
http://groups.yahoo.com/group/BroxComms/message/2
A more recent example was the letter I sent
out discussing how to handle the occupation of various sites by
travellers. Now in one sense it's obviously true that the ability
to do this gives the incumbent MP an advantage, but it's actually
the advantage that arises from doing my job properly. I do know
MPs who use the Allowance exclusively to send out glossy leaflets
with little content, just lots of pictures of themselves, but
to my mind that's a nonsense and voters see through it. My basic
view is what I wrote in a letter in the Beeston Express this week:
"Whether constituents would like me to
carry next May is something we should let them decide without
hassle or exaggerated rhetoric. The bottom line for most voters
nowadays is (in my view) that they like to be treated like serious
adults."
6. Coming events
Friday 11th December
7.30pm
Village Ventures presents:
The Eduardo Niebla Experience
Chilwell Arts Theatre, Chilwell School
Tickets £8, £6 (conc), £24 family (2 adults
+ 2 children).
Available on 0115 925 2698 or 07827 996 223 and also at the Print
Shop, 153 Attenborough Lane; Bookwise, 42, Chilwell Road; the
Flying Goose cafe, Chilwell Road.
This is an amazing opportunity to hear a great flamenco jazz guitar
virtuoso with his acclaimed trio; an evening of, "hot, dark
Mediterranean passion."
Sunday 13th December
7pm
Paradiso Cinema presents:
Miracle on 34th Street
Chilwell Arts Theatre, Chilwell School
Tickets £5.50, £4 (conc) in advance on 0115 925 2698
or 07827 996 223 or on the door.
Come and enjoy mince pies and mulled wine while you watch a timeless
classic that truly captures the spirit of Christmas. Film starts
at 7.30pm.
And something that isn't an event but a local
phenomenon: are you interested in libraries and reading? Have
you joined Nottinghamshire Libraries and Archives Facebook page
or Twitter stream yet? Find them at www.facebook. com/nottslibrari
es or www.twitter. com/nottslibrari es and sign up to find out
about events, resources and all the latest news direct from your
local libraries.
6. Correction
In my last email, I reported that Tesco is removing
Fair Trade products from its shelves in favour of its own Fair
Trade lines. This turns out not to be true – the move is
only for chocolate, with Divine chocolate being removed in favour
of a Tesco equivalent. In any case, a constituent points out that
the best fair trade outlet locally may well be Out of This World,
in Beeston, which certainly pioneered fair Trade locally before
everyone else joined in.
Best regards
Nick
A National Care Service?/the
banking trillions
4
October 2009
Hi all,
I missed the Labour conference due to a minor
bug (now gone), but have been looking into the idea proposed there
of a new National Care Service and considering how best this would
work. I wanted to discuss that with you and get your feedback,
and also comment on something that often comes up in correspondence:
exactly how much money did we give the banks?
Before that, a small follow-up to an earlier
theme:
1. Britain's global role
You may remember that when I was discussing
possible cuts in public expenditure, I suggested that a long-term
adjustment might be a less ambitious military stance, concentrating
on defence and collective action rather than the ability to intervene
around the world. My own thinking on that is still evolving and
I've been discussing it with several of you.
So I was interested to read an article in The
Times that suggested quite the opposite: the writer argued that
it was vital to punch above our weight, and we shouldn't shrink
from using bribery to promote arms sales and other ways to push
our global influence, since otherwise we would end up as `pointless'
as Norway. As I disagree, I wrote a letter which they published
today and you can click on here:
http://tinyurl.com/ybso4gs
2. The National Care Service proposal
One of the features of Gordon Brown's speech
was a proposal for a National Care Service, which would aim to
provide a general high standard for home care across the country,
with specific attention to people with high needs who would otherwise
need to go into a care home. This would differ from the current
County-based system in two ways: first, not only health care but
ordinary help with living would be provided free of charge for
people in this category, and second, there would be a minimum
guaranteed level of provision across the country, to end the current
postcode lottery (Notts is actually better than most so this second
aspect wouldn't affect us much).
Now clearly there may come a point where you're
just too ill to stay at home, but most of us have had family members
who had a rather agonising period when they'd have loved to stay
on in their familiar home but there simply wasn't the support
available. The cost of this is actually quite limited, since if
the alternative is to go into a home with all the costs involved
in that, it's not necessarily much more expensive to be looked
after more intensively at home. It's simply a better way of using
the same money, though Mr Brown envisages topping it up with reductions
in NHS spending on advertising, consultancy and IT (a cautionary
note here: I'd like more specifics of exactly what would be reduced
– advertising, for instance, can be important in public
health campaigns).
What does "high needs" mean? It's
defined as needing at least 16 hours a week of personal care (washing,
dressing, going to the loo, etc.). At present, if your total wealth
exceeds £22,500, you are not entitled to any of this except
at a relatively high charge which will quickly eat into your savings.
350,000 people are currently paying for this level of care at
home. The new system will be in the Labour manifesto, to be introduced
next September, if the government is re-elected (a big if at the
moment, but we'll come back to that question when the election
comes round!).
This seems to me a very attractive idea, but
there are issues to be ironed out. The money that goes to councils
who deliver the care needs to be ring-fenced for this purpose,
as otherwise they'd have no incentive to help people stay at home.
There also needs to be provision for counties that do provide
more than the national standard to top it up easily, so that perhaps
people with moderate needs could in due course also be offered
free home care.
Moreover, the idea is intended to be a forerunner
of a universal care system, free at the point of use like the
NHS, in return for a payment at some point. I think I favour taking
this payment at the time of death from the estate of the deceased
(or the last survivor where there's a couple): this seems to me
much more painless than charging people when they're 65. However,
let me be honest about that: it would mean essentially more inheritance
tax – what would be happening would be that you'd get free
home care when you needed it, even at more moderate levels, during
your life, but when you and your partner died and your home was
sold if you had one, a substantial one-off contribution would
be levied from the proceeds. I know this is a sore point with
many, but personally I'd rather pay tax when I'm dead, and if
I inherit some money I don't mind too much if a deduction is made
for the availability of free care during their lives – we'd
be clear that they'd got something for their money, if only peace
of mind. (That's not party policy yet – I'm just considering
whether I should propose it for the manifesto.)
In response to the Labour proposals, I understand
that the Conservatives will propose a different approach this
week: rather than free help to stay at home, if you pay £8000
when you're 65, you will be offered free care in a nursing home.
The economics of this idea are based on the fact that only about
1 in 5 of us do in fact go into a home, so it would fund £40,000
worth of care, just like an insurance scheme (and it might in
fact be privately administered by someone like BUPA). The attraction
is that many people can put together £8000 each from savings,
but £40,000 is out of their reach.
As with all insurance, though, there are small
print issues. If you're already rather ill when you're 65, and
perhaps need care imminently, do you still get to take part? If
so, won't the scheme get lots of sign-ups from people who need
the £40,000 package while people who feel pretty healthy
may tend to give it a miss? But if you can only sign up if you
*don't* have a pre-existing condition, as with most private health
insurance, then it's much less attractive and people who are ill
when they retire will still have to pay.
At any rate it seems to me a healthy debate
for an aspect of life which really needs fixing – the current
arrangements are too much of a lottery which can leave you in
serious hardship if you're unlucky. I've tried to put the pros
and cons of the both ideas fairly, and would be interested in
comments.
3. What happened to the bank guarantees?
You may recall that in the midst of the banking
crisis there were reports that we were giving the banks trillions
of pounds, creating a gigantic debt which would take generations
to repay. As we emerge from the crisis, I thought it might be
worth looking back at what was actually done and whether it's
worked. Two curious facts are that it appears in reality not to
have cost very much but that we don't actually know how much.
I'll explain.
Essentially the Government gave the banks three
things:
* A guarantee of UK deposits if they go bust.
Since the presence of the guarantee has stopped a run ion deposits,
nobody has gone bust, so the cost of that has turned out to be
zero.
* A large injection of capital in exchange for
shares. At present, the Government is sitting on a paper loss
on these shares because they fell through the floor during the
crisis, but the loss is falling steadily as the stock market recovers.
In the end it's likely to produce a profit, probably starting
with Northern Rock. This isn't trivial, since even when, say,
the Royal Bank of Scotland market price rises above what we paid
for the shares, the Treasury can't suddenly dump 70% of the shares
on the market without depressing the price again. But it looks
as though this element of the apparent cost is going to go away
in due course.
* Various guarantees insuring the banks against
losses if they lend money to private businesses and don't foreclose
too quickly on homeowners. These are potentially expensive if
all the businesses collapse and all the mortgage-holders default,
but as with the deposit guarantees the effect of having the banks
not foreclosing is to make it much less likely that the defaults
will happen. However, there is a cost, and we won't know what
it is until the crisis is over and we see how many firms and home-owners
defaulted. The banks are paying the Treasury for these guarantees,
and are increasingly keen to exit from them – essentially
it's an insurance policy they feel they no longer need. Given
the general recovery trend the net cost seems likely to be relatively
small - and in my opinion worth it (since otherwise there would
be many more bust businesses and evicted ex-home-owners) .
There's a Labour political point that the Government
seems to have got this right when others were suggesting it'd
be disastrous – see
http://tinyurl.com/ybe8bbo
for a nuanced discussion of this and other matters.
But the policy was put together in a frantic scramble (it's said
that several high street banks were within hours of collapse),
and the opportunity was missed to impose strict conditions on
bonuses and lending policy as part of the package. The G20 summit
was about trying to catch up with that, as you'll probably have
seen in the papers: basically bonuses will only be payable if
the apparent success has lasted for several years (rather than
short-term speculative success).
The eye-watering figures for 'money for the banks' were basically
worst-case assumptions - if all banks had collapsed, the government's
shares would be worthless, and if all businesses defaulted, we'd
be paying for all the loans. In reality, both Britain and the
other leading countries have got through – touch wood! –
with very little net loss. At a time when it's fashionable to
rubbish governments everywhere, it's nice to record that the world
got something more or less right.
4. Local news and events
• Friday 9th October, 7-9pm Roundhill
School, Foster Avenue: walk-in discussion with NET on the practical
implications of the tram. I've organised this in response to requests
from numerous constituents for more information about how the
project will affect them, and also for ways to raise specific
concerns (e.g. parking and through traffic during the development)
: there are a lot of people who simply feel in the dark. Having
had a number of public meetings with speeches, I thought it'd
be helpful to have one with a different format – nobody
will make a speech, but there will be displays about different
parts of the route and NET staff on hand to note concerns and
give answers where possible. The only thing I'd ask is that we
shouldn't go over the pros and cons of the idea again –
this is intended to be simply a helpful `fill in the blanks' event.
In the New Year, I hope to help set up groups of residents and
traders along the route to discuss details with NET contractors
as things proceed. I've arranged a separate pre-meeting for Chilwell
traders to discuss with a Conservative County Councillor, Richard
Jackson, their concern about the reported withdrawal of the transitional
funding help expected from the County.
• Sunday 11th October 7.30pm Paradiso
Cinema presents: Young Victoria Chilwell Arts Theatre, Chilwell
School , Tickets on the door £4.50, £3 (conc)
• Wednesday 14th Oct. 7.30pm: Beeston
Free Church have asked me to say they've organised a discussion
on euthanasia and assisted suicide at their church in Broadgate
– all welcome. There is a guest speak, Dr Andy Genmill,
followed a Q&A and open discussion.
• Wednesday 21st October 6-7pm: Village
Ventures presents: The Garlic Theatre: The Sorcerer's Apprentice.
Suitable for age 4+. Chilwell Arts Theatre, Chilwell School. Tickets
from 0115 925 2698 or 07827 996 223: £6, £4 (conc)
or £16 family (2+2).
5. Do you know a resident vulnerable to crime?
Constituent Linda Whitt, known to some of you
for her courses about preparing for retirement, passes on this
note for people in Neighbourhood Watch areas:
Some money is available for Neighbourhood Watch members who are
especially vulnerable to the activities of burglars/bogus callers.
The amount of money is severely restricted and once exhausted
will not be replenished. Persons who probably fall into this select
category are the elderly, those who are less able and persons
who live in older properties with little or no security, also
those on low incomes. The target hardening includes the fitting
and supply of locks, windows
> locks, shoot bolts, pad bars and padlocks and the reinforcement
of lower
> door panels to houses/flats - not outbuildings or sheds.
They do not fit or
> provide intruder alarms or security lighting. To suggest
someone who could benefit and learn more call 0115 9670 999 ext
812 5650.
Feedback welcome on all these things –
please add NNTR (no need to reply) if you don't need a personal
response.
Best wishes
Nick
Bus pass update
25
september 2009
A quick update on my earlier message.
The County have now officially said they will *not* be withdrawing
support for bus pass users to use the tram. Both the BBC interviewer
and I had been told otherwise yesterday, but I'm very glad to
be able to say that the threat, if it was genuine, has been lifted.
Best regards,
Nick
Tram: support for traders refused
/ by-election result
25
september 2009
Hi all,
1. The County's tram decisions
I've been asked by lots of people about the
implications of yesterday's County Council vote on the tram. They
have gone further than the expected decision not to contribute
to the cost of the project, and withdrawn the expected transitional
support for traders in Chilwell; I understand that they are also
seeking to ban the use of pensioner bus passes on the tram for
anyone living in the County. This would currently mainly affect
people in the north of the borough who use the tram from Phoenix
Park, but also means that when the extension comes to Beeston
and Chilwell pensioners won't be able to use it free as expected.
The County position, as I understand it, is that although they're
reluctantly going along with the project, it's now a City matter
and people who want financial assistance etc. should address themselves
to the City.
The snag about that is that the City is very
unlikely to fork out the £2.1 million in support which had
been expected for Chilwell traders: it's not realistic for the
County to dump the problems of County businesses on them, since
in the real world each council will give priority to its own residents.
Without the County support there is a real danger that most of
the traders will go under, not because of any long-term tram impact
but simply because of loss of business during the months when
the road is blocked due to construction. Regardless of politics,
someone needs to help them.
What can be done constructively about all this?
As far as the traders go, I'll approach NET and do my best to
get a package of help for traders from them: it's not in NET's
interest that shops should close down all along the route. As
far as the bus pass goes, I want to investigate whether the County
can actually do this without the consent of the borough council
– Broxtowe certainly wouldn't approve. I'll keep you posted
on both points (for the moment pensioners should be able to go
on using the bus pass on the tram while it's clarified).
I'm going to depart from my usual practice and
add a sharp political comment. The Conservatives campaigned in
the County elections on two themes: (a) vote for us and we'll
stop the tram and (b) we'll stand up for local traders. They've
now reneged on both. The tram will go ahead, and the traders will
be let down, the casual stab at pensioners by seeking to disallow
the bus pass from trams being an unexpected extra. I really think
they've been cynical about this – they knew perfectly well
before the election that it was too late to reverse the tram decision.
The current decisions won't hurt the tram project: they simply
pettily punish local traders and pensioners.
I suspect they'll try to rerun the tactic at
the General Election, by claiming that a Conservative Government
"might" cancel the tram altogether. Since the Conservatives
nationally are strongly pro-tram (their transport spokesperson
has attacked the government for being too slow in extending tram
networks), this isn't plausible, and once the election was over
we'd get another "Oops, sorry, it was too late to reverse
it" statement. These are examples of the tendency in politics
- not restricted to the Conservatives - of taking any old line
that gets votes and worrying about the consequences later - but
sometimes, as in this case, completely innocent people are affected
badly.
2. Toton and Chilwell Meadows by-election
A pretty quiet outcome in this traditionally
safe Conservative ward. Turnout was down by a quarter to 31% and
all parties lost votes, especially the BNP, who lost nearly three
quarters of their support. A widely-circulated leaflet by an anti-BNP
group had shown the candidate attending what was described as
a German Nazi festival, in front of a poster showing steel-helmeted
soldiers in heroic poises. I've not seen a denial of this, and
if a party is seeking to garner support with a claim to be super-patriotic,
it's probably a tiny bit unwise to appear to be sympathising with
the army that tried to conquer us. (For details of the allegations
see http://www.indymedia.org.uk/en/2009/09/438530.html
)
The full result (comparisons with average vote
last time in the multi-member ward): Con 1081 (-265), LibDems
474 (-230), Labour 298 (-102), BNP 59 (-147). UKIP, who had 149
votes last time, didn't stand this time.
There was a 4.5% swing from BNP to Conservatives
and a 1% swing from LibDems to Labour. The Conservatives lost
ground to the BNP last time and this makes it up: their share
of the vote is now back to around its 2003 level. They were disappointed
in the drop in their majority against the national opinion poll
trends, but in fairness there was a strong view among local voters,
including many who didn't support them, that they'd chosen a good
candidate: Ms Hegyi has a strong local record and I think she'll
be a good councillor. We were pleased to improve our share of
the vote in national conditions that can modestly be described
as suboptimal for Labour, and to see off the attempt by the BNP
to overtake us. I'd like to say thanks to my Labour colleagues,
especially Atul Joshi, for all the hard work and to Ms Hegyi and
her team and the LibDems' Bob Pemberton and his team for a very
fair campaign.
Best regards,
Nick
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