Rural Fuel Prices

The Highland LibDems - and Danny Alexander in particular - after all the noise they made about reducing rural fuel prices during the election, have a lot of explaining to do.

The Herald has predicted fuel prices in the Highlands could soar to 136p per litre from January as a result of the proposed hike in VAT to 20% on top of the already planned fuel duty increases.  See here.

VAT rises always hit the poorest hardest, so what exactly is "fair" about this, Danny?

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Blairs Millions

Whatever money the British Legion gets from Tony Blairs book profits will be well used and appreciated by those that benefit from it.

I am not going to get into his motives. That's for him to deal with. But the torch shone on his financial affairs as a result reveals so much. The multi-million pound properties, the huge fees for speaking and advice to other governments, the estimated total wealth in 10s of £millions.

Criticising him for taking advantage of the opportunity to make that kind of wealth is difficult. How many of us would walk away?

But you can't operate in that world without losing touch with the world the rest of us live in.

For me, sadly, that explains a lot.

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Benefits should define Labour

An effective and enabling benefits system is for me a pillar of the kind of society I want to see.

There when you need it, supporting you and your family into work or education. Enabling you to develop to your full potential and play a part in your community whatever your personal challenges.

We need to drive cheats out of the system but above all we need to make it simpler. Recent estimates are that more than £3bn is wasted through errors and mistakes which dwarf the estimated loss of £1.5bn through deliberate fraud. Never mind the folk who don't get what they are entitled to because it's so daunting.

The Coalition seem determined to use benefit system reform as a blunt instrument to save money and drive people into low paid jobs. Incenting private companies like Experian to spy on our communities to achieve this is a shocking definition of "fairness".

But there is no point in Labour just criticising from the sidelines. We need to work out our own new ideas and reclaim the Benefit System for Labour in the same way as the NHS.

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Coalition must not be allowed to re-write economic history!

The constant repitition by LibDem and Tory ministers of their mantra that the coming savage cuts are all the result of "Labour's financial mess" risks becoming accepted wisdom if we don't start to counter it soon.  Remember how the Winter of Discontentt came to represent all the reasons Thatcher got support for so long?

Excessive public spending didn't cause the credit crisis; what caused it was a massive over indulgence in credit by the private sector, led by bankers and financiers far more interested in personal wealth and power than stable banking.  Labour - like every other government in the western world - had to pump £billions of public money into the banking system to stop it collapsing.  Now ordinary people will pay a huge price in service cuts, lost jobs and a VAT hike that always hits the poorest, whilst the City gets back to "normal".

Coalition ministers tell us there is no choice but to make savage cuts in public spending, to appease the same financial markets which got us into this mess in the first place!   But there is a choice if you want to make it.

What Cameron and Clegg are proposing is about idealogy.  They want a smaller public sector and this is their great opportunity to do it.

Labour needs to get back on the front foot and stop the re-writing of economic history that is going on.

Which of our party leadership candidates will take up the challenge?

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When Fairness Equals Savage Cuts

Every LibDem candidate across the country campaigned on “fairness” during the Election.

Every letter and leaflet promised that the LibDems were the only party who would restore economic and social fairness. Locally, Danny Alexander promised fair taxes, a fairer economy – with investment in the Highlands in green energy , broadband and affordable house building - and a fair fuel deal for rural motorists.

Labour’s warning about LibDem plans for savage cuts in public spending were dismissed as scare mongering.

Two months on and the LibDems need to answer some questions.

How is it fair to raise the income tax threshold, then take it all away again for low income families by raising VAT and slashing tax credits?

Why is it now fair for public sector workers to take the pain, instead of the bankers and financiers you lambasted in all your election literature?

What’s happened to all the promises of reducing rural fuel costs? The VAT increase next January will put rural fuel prices up not down and a pilot scheme to reduce rural fuel prices seems to have been kicked into the coalition long grass. See Peter Peacock’s latest comments here.

Why is Danny Alexander leading the charge to cut not just 25% but as much as 40% from government budgets? The Barnet Formulae will bring that home to Scotland next year. If times are already tough for Highland Council he is about to make it a whole load worse.

Labour would have had to make some tough decisions about public spending, but our approach was to get the balance right between reducing spending and raising income from economic growth as we came steadily out of recession. We would have reduced the deficit by 50% by 2014 without any of the ideologically driven pain now driven by the Tories and signed up to by the LibDems.

How is all this “Standing up for the Highlands”, Danny?

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The Real Tory Agenda

When Conservative candidate Jim Ferguson stood up at the Kingussie Hustings and told the audience that the public sector “generated no value” he was regarded as a maverick speaking only for himself.

Now we know that his thinking was straight out of Conservative Central office.

Listening to David Cameron yesterday, speaking with scarcely concealed enthusiasm about the huge programme of cuts he is planning in public spending was chilling. Not because of the scale of the deficit – the numbers he quoted were all in Alastair Darling’s last budget report– but because of what it says about how the Tories view the public sector.

To listen to Cameron speak, you would think it was public sector workers who had caused the recession, soaking up wasteful government spending in well protected jobs, whilst the private sector withered away. The reality is that its only by keeping investment going into the public sector over the last two years that we have stopped a much worse recession; indeed the slow recovery we are now seeing – lower borrowing than predicted and lower unemployment – is probably a direct result of there still being public sector workers with jobs and therefore money to spend on their homes, consumer goods, holidays, services and all the other small economic activities that are the bedrock of our small business driven economy.

How many families have got through the past two years because at least one family member had a job in the NHS, their local council, school or a care provider? Investment in new schools and hospitals doesn’t just build smart new buildings, it employs people, experienced workers as well as apprentices.

Cut a 100,00 jobs out of the public sector – with the spending power that comes with that - and you risk plunging the private sector straight back into another recession.

Labour’s approach to rebuilding the public finances was about getting the balance right between growth and spending; stimulate the economy slowly and steadily and you eventually get higher revenues from income taxes and VAT, so you need to cut spending by much less.

What Cameron’s speech yesterday told us is that the real Tory agenda is still driven by their instinctive aversion to public services. They want a smaller public sector – full stop – and this is their magnificent opportunity to deliver it on the back of financial scaremongering, blaming it all on Labour (“a big boy did it and ran away”) and a corner shopkeepers’ approach to economic planning.

All helped of course, by LibDem willingness to wield the knife as the price for power.  Danny Alexander seems to have gone very quiet all of a sudden........

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A Bridge too far, Danny?

When I said to comrades in Inverness last week that the real test of the new Coalition would come when it faced its first crisis, I didn't expect it to be upon us quite so quickly.

David Law, I think, has done the right thing but the elevation of Danny Alexander to be the new Chief Secretary to the Treasury must be a concern.

I don't know Danny personally, but I got to know him a little during the election campaign.  I liked him as a person and he is obviously a capable politician, as his election result shows.  Party politics aside, he did a good job during what must have been hugely tense and complex negotiations with the Tories to agree how they would share power.  But I worry for him now.

Senior government responsibility is much like football management. Mostly, you need to put in the learning in the lower divisions in order to to be able to lead and deal with the pressure at the top.  We now have the two most senior politicians in charge of shaping the economic destiny of this country both under 40 and with next to no real business or ministerial experience.  Whilst I don't agree with their politics, David Law had years of experience in the City behind him and the Tories' Phillip Hammond a successful business career as well as shadowing the role for a long period.  Was Vince Cable even asked, or did he not want to go there?

I notice also that none of the senior and experienced LibDems in Scotland seem to have been considered as the new Scottish Secretary.  Or were they not interested?

I wonder whether the Tories are working to a very smart strategy which is to have a coalition partner in place, willing to make cuts in return for power and who can be an expendable target for the blame when the masses get difficult.

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