Friday 2 December 2011

AN ACUTE LACK OF FAIRNESS...

I spent the first half of the week on a very intensive training course (complete with an exam - which thankfully I passed) so I missed the strike day entirely. It's literally taken until today for the deprogramming to kick in and to put thought to blog. Wednesday came and went, the Conservatives are feeling good, having a pop at the Unions over strikes for the Tories is like playing to a familiar audience.

The amply rewarded and well-paid card carrying largely Labour dinosaur Union bosses are happy as they got to have a go at a Conservative led Government. The current (New) Labour leader is quietly hoping that the strikes will go away and no one remembers that this whole economic mess originated when New Labour were running the show.

Now to be fair it's a devilishly awkward situation that the party formerly known as New Labour finds itself in. I mean they are trying to sit on the fence and avoid taking an official position, neither for or against the strikes. Fence sitting aside as the dust settle a lot of people who can least afford it are out of pocket at a time of year when they can least afford it.

The anger of public-sector workers who took part in strike action on Wednesday remains understandably undiminished. They are being asked to make significant financial sacrifices to pay for the mess, those responsible for the mess the private finance sector, are definitely not being asked to make the same level of sacrifice and by and large appear to have got away with it and escaped unpublished for their actions.

Understandably public sector, many of whom are not paid very much, are a tad upset that part of their pension, for which they were entitled to plan for many years, is going to be taken away. I have no doubt that the scale of government borrowing requires emergency action, yet any savings from changes to public-sector pensions won't actually come through until some years after this financial disaster has faded into memory.

Apparently the Government has moved some distance towards meeting the unions' objections, apparently by reducing the cuts for those nearing retirement. If this is the case, then serious efforts should be made to get a deal on the table and to sign it. Both the Unions and the Government should accept it an honour it.

Why do the cuts need to be so apocalyptic? Could not saving be made in other areas? Trident perhaps or a couple of aircraft carriers (one of which there are no plans to even use!). The UK Government can manage to find the money to spend on wars and their aftermath, but, not apparently when matters are deemed less urgent.

I wonder if the (subconscious or not so subconscious) motivation for the attack on the public sector workers is more ideologically driven rather than financially driven. It is worth noting that both Cameron and Osborne were heavily involved if not key players (coat holders) for Michael Howard’s thankfully unsuccessful campaign to be Prime Minister.

That thought aside, one financial cuckoo that's coming home to roost is that of PFI – something that the public sector was forced to use by the last Labour Government (and is still favoured by the current government) and for which we will all be paying for many years to come. We will all be paying for a whole raft of Blair’s legacies, including a couple of wars and the London based and largely London beneficial Olympics.

For the next ten years at least, public spending is going to be under severe pressure. Harsh choices will be made and priorities decided; and some changes may need to be made to relatively generous future pension rights of public-sector staff. I don’t necessarily dispute that, but, I question on whose behalf these decisions are being made and what efforts are being made to ensure that we all pay our fair share?

From where I am sat (in the cheap seats) this Conservative Government is the Trade Union leaders' best mate (if not a convenient ally). This is government for the rich and by the rich (for that's how it appears to me) has stood by while the City fat cats continue to be rewarded for failure and to rake in fat bonuses and done nothing.

The Con Dem's biggest problem is the acute lack of fairness, as boardroom pay has raced ahead, and tax evasion and tax avoidance largely goes unpunished. Excessive profiteering by the energy cartel has gone unpunished and those who can least afford are getting hammered. David Cameron and Mr Osborne remain utterly unconvincing as they continue to fail to convince most people that they (of all people) are genuinely "all in this together".

Last Tuesday George Osborne showed that he failed to even consider any idea for public disclosure of tax returns or a ban on honours to those who have already rewarded themselves pretty handsomely. Nothing was done about tax avoidance; and no consideration was given to a "Robin Hood tax" on financial transactions (something that needs to be done on global basis). Rather than criticising the strikers, Cameron might want to take steps to ensure that the bankers and the rich are in this, too, like the rest of us.

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