Tourism

This article about Derek Reid, formerly chief executive of the Scottish Tourist Board, has some useful ideas about the Scottish economy, especially tourism - our largest industry. I agree that politicians don't seem to have any idea about how important tourism is for Scotland but they are not the only ones in need of re-education.

Earlier in the week I went for a drive. At about 1 pm I went into a pub in Kirkliston, near Edinburgh airport. I'd been before and asked for one of their cheese rolls. "Sorry sir, we don't do meals (sic) on Tuesdays." Two other men then entered and asked for the menu. Like me, they left. I eventually ended up in the small town of Dollar in Clackmannanshire. Another pub and a request for the menu. "Sorry sir, the kitchen closed at 2." This sort of nonsense has been written about often in the Scottish press. Come on people: get your act together.

A nation in trouble

Bill Jamieson is the Executive Editor of the Scotsman and regularly writes about Scotland's economy. Today he exposes the damage done when politicians get it wrong.

He mentions:

the appalling economic conditions in which the mass of the population have been forced to live.

and he exposes the:

socialist regime (that) has bankrupted a country.

The nation:

should by rights be one of the most advanced and successful economies in the world. It has the means to boast first-class infrastructure and the best schools and hospitals that money can buy. It should also have manufacturing, service and knowledge industries to compete with the best.

Bill asks:

Where has the money gone?

Well, the politicians have screwed things up:

Corrupt state ownership of the country’s vast ..... resources and central planning and control of industry and trade have wrought economic devastation.

On schooling, Bill says that:

One can only hope that wiser teachers might now explain how freedom has to be fought for

Absolutely correct. A pro-liberty intellectual revolution is needed.

However:

More important, it will require a legal system, an open and transparent civic culture and an opening up of economic ownership.

At this point I expected Bill to condemn our Parliament's attack on property rights under the new "right to roam" law that will bankrupt much of the rural economy. Poor old Scotland.

Only then did I realise that Bill had been writing about Iraq.

A National Socialist government?

The Scottish Nationalists have been courting the business community for years. Recently they have been making some headway. Several leading businesspeople have said that the SNP's policies would be good for the economy. Have the Nationalists now blown it?

A COALITION at Holyrood between the Scottish National Party and the Scottish Socialist Party was publicly raised yesterday by senior figures in both parties.

This possibility has not been raised officially by the SNP but by Sandra White who just happens to be their top candidate in Glasgow:

Asked if she agreed that could be an SNP-SSP alliance, Ms White said: "Everything's possible. I don't rule it out at all." Asked what John Swinney, her party's leader, thought of the idea, she said: "I will speak to him later."

If John Swinney has any sense he will denounce this suggestion immediately.

The Tories need to do more than say that an SNP/SSP alliance would be "no surprise". It would be an utter disaster for the country and especially for a business community that used to be a source of natural support for the Conservatives.

The state against the people

Surely this is wrong. Robbie the Pict is standing for the Scottish Parliament. He wants to run as the "Scotland and Shetland’s Self-Determination Rights" candidate. But the authorities won't let him:

However, Arthur McCourt, the regional returning officer, on advice from the Electoral Commission, ruled that individuals had to describe themselves as "independent", or leave the box blank.

Robbie objected to having to use a "state term" (you got that right, Robbie), and took the issue to the Court of Session in Edinburgh, asking for an interim interdict to prevent Mr McCourt from declaring invalid his nomination paper

What the Electoral Commission should be doing is challenging the Liberal Democrats for wrongful use of the word "liberal".

What kind of auditor is this?

There is more in today's Scotsman on the Scottish Parliament construction scandal. Margo MacDonald, who has campaigned for better management of the whole sorry project, said:

"The report reveals the project was fundamentally flawed from the very start and it has grave implications for the whole of our public life and executive spending."

Indeed so.

The Auditor General's spokesman said that his report didn't go into the detail of the procurement process because "in our judgment it was not one we felt adversely affected the overall management of the project". In the private sector, auditors don't just look at whether projects have been managed well and the figures recorded properly, but also examine contracts with suppliers and customers to make sure that the best arrangements have been made from the point of view of the shareholders. It is hardly surprising that public expenditure is out of control nor that taxation is crippling industry if our elected representatives are not given the information that they need to do their job.

The great scandal of Edinburgh

The endless budget overruns during the construction of the new Scottish Parliament building have caused outrage. Now this report makes some shocking claims:

The leaked report - kept under wraps for more than two years - claims Bovis Lend Lease, the main contractor for the project, was appointed because a key figure in the Scottish Office worked with the firm before.

It says the "comfort factor" of this previous relationship overrode the attempt to get the best candidate for the job. The report, by international cost consultants Gardiner & Theobald, also claims there was a substantial overpayment of fees to the architects in the early stages of the project.

Furthermore:

Independent Nationalist Margo MacDonald today demanded a full inquiry into the project after she was leaked a copy of the report, which she had been refused through official channels.

What the hell is going on here? Margo MacDonald was elected by the people to represent us and has performed a great service by vigorously monitoring the whole construction project. Why should the Auditor General refuse to provide information to an MSP? I can well imagine the outcry if an auditor in the private sector refused to provide information requested by a director of a client company.

The Nationalists made a great mistake in edging Ms MacDonald out of a winning position in their candidates' list. This latest exposure may well see her back into parliament as an independent. I was in a taxi in Edinburgh a few weeks ago and the driver said that Margo MacDonald had been the previous passenger. Was he going to vote for her? Absolutely. And so were many of his colleagues.

Texas and Scotland

Over on The Brazos de Dios Cantina, Sharon Ferguson publishes correspondence she has received from Scottish political activist Colin Beveridge.

From Braveheart to Bullring?

Birmingham is a much-maligned city that has lots of attractions. I have always enjoyed my visits to what was one of the cradles of the industrial revolution. I was, though, somewhat surprised to see an advertisement in the Scotsman today from British European offering flights from Edinburgh to Birmingham under the heading Get away from it all! Back to the copywriters' handbook guys.

Iraq - What next?

George Kerevan's Scotsman article today has some interesting suggestions:

Iraq’s biggest problem - as well as its biggest asset - is its youthful population. Half this country of 24 million is aged 14 or under. Which means they know nothing other than Saddam’s propaganda. In the next decade, this cohort will come of age. Unless they have something productive to do, they will become a force open to nationalist and Islamic fundamentalist rhetoric.

The crucial thing is to find a way of absorbing them into the economy. Instantly, this means a massive educational programme, especially to ensure that all young Iraqi women can read (current female literacy is about 45 per cent). Giving the young women a stake in the economy will be a good way of cooling male hotheads.

Fortunately, there are two labour-intensive industries that Iraq can develop to soak up some of this restless youth: agriculture and tourism.

I think that a peaceful Middle East would enjoy a tourist bonanza. Sadly, it's probably too late for one of the great investment opportunities of recent times: property in downtown Baghdad.

Labour has been found out

The Financial Mail on Sunday publishes a survey of business attitudes to the government.

The survey asked:
Does this government understand enough about what business needs to thrive?

The answers:
No, not al all: 61.2%
No, not enough: 33%
Don't know: 3.9%
Yes: 1.9%

Ah, but these are the responses of the greedy bosses, aren't they? What about ordinary people?
The main section of the Mail has its own survey:

Will extra money raised by the National Insurance rise improve the NHS or be wasted?
Improve NHS: 22%
Be wasted: 72%

Would you support extra tax rises to improve schools and hospitals?
Support: 35%
Oppose: 62%

Has Labour become the party of tax and spend?
Yes: 60%
No: 21%

Is Labour squeezing the middle class?
Yes: 52%
No: 26%

This looks like a party that should be on the run. A half-competent low-tax opposition would be sweeping all before it. There's no sign of this yet but the opportunity is there for the taking

The power of the market

British and American troops in Iraq have been exchanging supplies as and when needed. I read yesterday that the soldiers of the Black Watch have been doing deals with nearby US personnel. The going rate is one bottle of whisky for one army tent. I leave it to you to guess which side provides which items.

Blogger fixed!

After searching the web I came across a suggestion that I change 3 characters of code. Why had they gone wrong? I don't have a clue. Bring back paper and pencil.

It's driving me mad!

The Blogger system has malfunctioned! Postings are on my computer in draft mode but won't publish. This kind of thing has occurred before and should resolve itself ASAP.

More on pensions

The Scotsman's Business Editor, Bill Jameison, writes that pension returns have plunged by 49% over the last six years. This is the result of falling fund values coupled with reduced annuity rates.

In a separate article, David Simpson (formerly economic advisor to Standard Life), tells us that:

ALL THREE pillars of the British pensions system are crumbling. The basic state pension is unsustainable in its present form. Defined benefit occupational pensions schemes are fast disappearing, and with them the retirement hopes of millions of workers.

A further three million low income earners are not saving enough for their retirement. And uncertainty about pensions choices is widespread.

Mr Simpson makes several interesting suggestions that could improve the situation but doesn't mention the greatest pension scandal of them all, namely the onward march of pension benefits for government workers. Their pensions don't seem to be under any threat. State employees (especially in Scotland) generally have better working conditions, more job security, longer holidays and secure pensions that are paid for by the rest of us. This should be one of the main issues in the Scottish election. So far, I haven't heard a word.

Labour's tax plans hit pensioners

Here is a letter objecting to Labour's proposals to raise council taxes:

Any form of taxation based on the value of property is inherently unfair as it does not truly reflect the wealth of those living in the property. Just because the value of property has increased over the last decade does not mean that my income has in-creased to the same extent.

It is understandable that Dr Peacock is angry. As he points out, local services have got worse as taxes have increased. What we need is to move most or all of these local government "services" into the private sector where customers not taxpayers would pay for them.

H H Rae is also upset by the Labour plan

The Scottish election

The BBC website has a useful guide to the 1st May election.

Is Scotland's economy a basket case?

Well, perhaps it isn't. A fascinating article in the Sunday Herald suggests not:

Between 1963 and 2001, the Scottish economy grew by 2.1% a year on average (UK 2.4%). Between 1983 and 2001, it grew by 2.2% (UK 2.6%).

That is much closer than had previously been thought.

And what about oil?

Furthermore, each of these comparative UK figures includes the output of oil and gas from the UK continental shelf. The Scottish figures do not. Take oil out altogether and between 1963 and 2001 the Scottish economy grew by 2.1% a year, while the UK managed 2.2% on average.

When the figures are adjusted for population movements we get an even better result:

When that further adjustment is made, he calculates, average annual Scottish growth actually outstrips the UK in the 1963-2001 and 1973-2001 timeframes, by 2.1% to 2% and by 1.7% to 1.6%, respectively. Only in the 1981-2001 period does the UK come out top, but only by 2.4% to 2.3%

I wonder how well we would do if our politicians actually supported pro-growth policies.

Where your money goes

Thanks to the Liberty Club of St Andrews for drawing my attention to this excellent new site. Wonderful sound effects!

Fiddler on the roof

The City of Edinburgh Council wants to make some residents of the New Town pay for repairs to a pavement on the grounds that it forms part of the roof of their basement flats:

The council decided that because the pathway goes over small yards or vaults in front of the residents’ flats, then the pavement was effectively part of their roofs.

In a sane world streets would be owned privately and ownership responsibilities laid down clearly. In the meantime I suggest that the residents invoice the Council for backdated rent for all pedestrians estimated to have walked over the "roofs" without invitation.

The return of Old Labour

Jack McConnell wants to raise council taxes:

LABOUR is planning to go ahead with a shake-up of council tax property bands that would almost certainly bring bigger bills for people living in more expensive houses.

This would be achieved by extending the top-band threshold from its current £212,000 level:

In the Scottish cities, there is now a larger number of properties worth well in excess of that figure and it is likely to be argued that there should be extra bandings at the top end.

House prices in the capital have more than doubled since 1991, which means the £212,000 threshold for the top band is the equivalent of around £465,000 today.

One reason for increased property prices is the historically low level of interest rates that have at the moment. These may well rise shortly as a result of Gordon Brown's ever increasing budget deficit which will probably necessitate more government borrowing. If house prices fall back, as many expect, would council tax valuations be adjusted downward? I don't think so. They just want your money.

Teachers' salaries

An "independent" review has said that senior teachers, including headteachers, are overpaid. The education establishment is upset:

The SSTA said the assessment showed 62% of secondary headteachers and 91% of their deputies were over-paid. About 84% of assistant heads and 72% of principal teachers also will be told their salaries should be cut.

The review has been produced by PricewaterhouseCoopers. The problem of course is that a survey by management consultants can never tell us what the correct salary levels are for teachers or anyone else. Only the free market can determine what people should be paid. Let's privatise education thus providing pupils with the best possible education and teachers with appropriate salaries.

Another Tory defection to the SPA

This time it's Lyndsay McIntosh, formerly an MSP for Central Scotland. The Conservatives now have only a few days to find new candidates in Central Fife and in Kilmarnock and Loudon.

Laissez-nous faire!

Now Ireland's health minister is proposing to ban smoking in pubs and restaurants. Edinburgh Tory councillor Brian Meek is impressed:

Ask yourself this: which is the most harmful activity in Scotland: binge drinking, hunting with hounds, or smoking? Remind me again: which was banned?

Well Brian, the most harmful activity in Scotland is not drinking, hunting or smoking but politicians who think that they have the right to tell the rest of us how to conduct our lives.

Mr Meek thinks that opposition to this kind of law is driven by smokers and pub owners:

Leading the opposition is the Tipperary South member of parliament, Noel Davern. "I have spoken to the minister three times," he informed us. "He is fanatically anti-smoking. The fact that I am a smoker myself has nothing to do with it." Of course not.

It is also a coincidence that Senator Eddie Bohan, also opposed, has an interest in a number of pubs in the Dublin area.

I am not a smoker nor do I own a pub or restaurant and I don't enjoy smoke when I go to such establishments. Nevertheless, it's not the government's business. Let the property owners decide and go broke if they get it wrong.

Tory defection

Outgoing Tory MSP Keith Harding has defected to the Scottish People's Alliance:

Mr Harding will stand for the SPA on the Mid Scotland and Fife regional list and in the Stirling constituency, where he will go head to head with his former colleague, Brian Monteith, who is standing for the Tories in the city.

Freedom and Whisky contacted Brian Monteith who said:

It is deeply disappointing that Keith has chosen to leave the Party and stand against me, especially after all the personal support I have given him over the last four years. The SPA is not even on the radar screen, and yet, at the risk of losing many personal friends, he has gambled that this fledgling party will keep him in Parliament. I think it is a serious error of judgement and I only hope on a personal note that he is not badly scarred by the political rough and tumble that tends to follow political defections.

Although the SPA has called for reductions in taxation they support the introduction of identity cards. They also place great emphasis on democratic "rights" rather than the rights of individuals against the state. The state is not our friend and the state needs to be limited.