Thursday, 14 February 2013

The waiting is over!

872 days after his election as leader of the Labour party, Ed Miliband has finally broken his silence and given everyone their first insight into what he would do in the unlikely event of him becoming Prime Minister two years hence. In a statement bearing the impact of two wooly jumpers colliding with each other on a giant bean bag, he has pledged to bring in a 10p lower rate of tax. But that isn't all. He will tax people living in homes valued in excess of £2.5 million. I can't help wondering what he has been doing these last 124 weeks or so. I suppose it is merely coincidence that the Conservatives first mentioned such a policy yesterday.

As one of the advisers to Gordon Brown in the Treasury, Ed Miliband was part of the great cheque-book triumvurate of Brown, Balls and Miliband. If said often enough, it begins to sound more and more like a medical diagnosis. A diagnosis maybe but definitely not a management plan. In the company of such flagrant profligacy, even the deeds of Nick Leeson now seem reasonable. The arrogance of a man who directly contributed to the largest budget deficit in history is truly breathtaking. His solution to address the perilous state of the country he left behind is to cut tax. Perhaps he seeks to finish the job off properly. If in doubt, cut tax and spend more was the rallying cry of New Labour and has now been adopted by New Old Labour. Same old Labour though isn't it?

When the Tories were ousted in 1997, they had become stale, arrogant and bankrupt of new ideas. Like Achilles though, they retreated to their tent and questioned themselves and their legacy. People such as Iain Duncan Smith and William Hague were at the forefront of those who held their hands up and admitted the failures of their party. It would still be thirteen years before their time would come again. This time was employed wisely conducting careful research to underpin strategies in social care, justice, health and public spending. The current government is far from perfect but they are doing the difficult thing and sticking to their course. We are all feeling the pain but not because of the coalition as the unionists and Labour Party would have you believe. It will take a lot of time and no small amount of good luck to once more balance the books of this country. Labour ought to be apologising for their policies in office rather than sitting on the sidelines berating the efforts of coalition who strive to address the mess they were left with.

We have no gold reserve now because of the Labour party. This was a national scandal unforgivable in its naivety and temerity. To speak of 10p tax rates at a time when we can barely afford a tin of baked beans is stupidity taken to a new level. Wales alone now boasts the highest rate of new food banks being opened. This is because their country has been allowed to be so utterly dominated by the Public Sector. Jobs will come to Wales and their Celtic cousins but it is going to take a long time and careful planning. Successful companies in the Private Sector have little incentive to want to come and set up shop here. There are barriers of language, poor roads, poor rail links and social deprivation the minute they arrive. Having worked in the Private Sector, I know what drives it - accountability. Accountability to share holders and boards of directors. They are efficient because they have to be to make money. It is that simple. What a contrast with the Public Sector whose watchword is unaccountability. Answerable to nobody, they do as they please and their tumour-like empires are now out of control. Put simply, if you can't get a job in the Public Sector in Wales, you'll be a long time finding a job elsewhere. What utter nonsense then to propose a 10p tax rate when the only beneficiaries this side of the border will be the Public Sector employees. They alone enjoy a living the right side of the bread line - it is the others who go cap in hand to the food banks. The food banks are often being run by the churches in the locality. There is no surprise here of course because when the chips are down, the church is all that remains for many people.

What really scares me is that Labour have not hidden their view that the only way out of this mess is to spend even more. I once read that the definition of insanity is to do the same thing over and over again and expect a different result. I rest my case.

I have said that the incumbent government still has much to do and can suggest several areas where they need to start. They need to scrap all final salary superannuation schemes with immediate effect. The maths underpinning these schemes is straight out of Alice in Wonderland. People are living longer and longer and taking more and more out of their ever decreasing pension pots. This is patently silly and needs to be stopped. People are retiring on sums of money the like of which they couldn't hope to spend even if they tried. The dead wood in the Public Sector needs ditching sooner rather than later and the money saved not spent.

The unchallenged growth of the supermarkets in the UK over the last thirty years or so has been a scandal. This has been borne out this week with the "shock" revelation of horse meat in processed food. These retail behemoths have become bigger than the communities in which they reside and show no accountability. Why should they? Their shareholders are happy and their boards of directors are suitably renumerated. It matters not that the High Streets they superceded have become a retail grave yard. These same High Streets were the centre of the community when I was growing up and need to be so again. Only then will employment prospects be enhanced in the Public Sector dominated Celtic countries. Such employment will underpin community in a far more meaningful way than your "local" supermarket.

The NHS is buckling at the seams as recently evidenced in the report into the appalling standards of care at Stafford hospital. That has been well covered elsewhere but what has not been addressed well is the growing morbidity of the population. Certainly people are living longer but in what state of general health? It is little wonder that the NHS is at breaking point. It is faced with a slowly diminishing number of staff and a relentless increase in the numbers attending. Such a burden is unsustainable in the long term and something has to give.

The provision for the elderly and the mentally ill is not good. The bad news is that neither are going to go away. On the contrary, I foresee them both growing. Provision for the mentally ill and elderly must be at the forefront of health care if the burden on the NHS is to be addressed. Of course, much of the mental illness in our society today is being driven by unemployment and the bleak future it brings. Everyone needs a reason to face tomorrow and services to address the needs of those who have given up hope are simply not good enough. This is where resources should be being allocated. The present system is a fire-fighting system, which places a burden of stress on all involved. Far better to address the cause of the fire. The definition of insanity is doing the same thing over and over again and expecting a different result! An easy step would be to follow the lead of the Scandinavians and price alcohol as a luxury item rather than the everyday staple it has now become for so many. The detrimental effects of alcohol on mental health are well documented so why not act upon the evidence?

As for the Labour leader, I think he is in for a shock at the next election if the introduction of a 10p tax rate constitutes the sum total of his thinking. If he really wants to be taken seriously, he needs to acknowledge the folly of his past decisions and give the electorate some serious policies to consider. Historically, existing governments are voted out of office in this country. New governments are seldom voted in - particularly if everyone can easily remember the rotten fruits of their policies from last time. It is perhaps fitting that he has chosen St. Valentines day to make such an announcement because it really will be a massacre for lots of people if we cut tax now and start a spending spree. A poison arrow indeed.     

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