Independence; the Small Business Question

Local party and day job business has crossed paths with more than a few leading SNP representatives and supporters in recent weeks.

Always very civilised (socially and economically, Labour and the SNP agree about much more than we think)  One thing we do agree on is that its good we are now engaged in debate about what independence will mean rather than all the arguments about process.

Having been working "down south" on business most of this week and last I'd like to talk about how small businesses might be affected by Independence.

After all, we know that small businesses drive 70% of the economy.  That's especially true in Scotland and in the Highlands in particular.

I run a small business out of Inverness and Edinburgh.  Most of my clients are SMEs. Well more than half of them are in England and Wales. As well as the small number of people I employ directly, I’ve a network of  professional colleagues who make a decent living from my company.  Between us we spend locally on the services we buy in as well as the taxes we pay (I don't have access to Amazons or Starbucks accountants)   A lot of the small Scottish companies I work and compete for business with have similar profiles.  

So how would independence affect my company and the many businesses like mine who between us employ so many people in Scotland, directly or indirectly?

I rely on easy travel links (train and plane), sterling billing, a common tax system and all the other things that make doing business in Cardiff (where I've been today) just as easy as in Dingwall (where I'll be on Friday)  

When we are working with clients in Dublin, there is just a lot more to sort out - for me and the client - even though we are all in the EU. If Scotland and England are separate EU states, then how many times will it just be easier to employ a "local" firm?  Procurement law gives big firms an even playing field, but its a lot more challenging for small ones.

I'm assuming here (ignoring some would say) that there is no risk that an independent Scotland would not be an EU state automatically, from Day 1.  The idea of trying to work across an EU border is a nightmare scenario.  It would destroy my business. 

We hear a lot from the SNP about how independence would be good for the Scottish economy.  Maybe it would for the big firms who have the financial muscle to work through the downsides.  Though Aggreko boss Rupert Soanes doesn't think so

But how will the promised land make business easier for the small businesses on which the economy actually depends?

New Ideas for a Devolved Scotland

I’ve made a resolution to myself that I will not just post arguments against independence, but will put up some ideas for what more we can do in a devolved Scotland.  Not so much Devo Max as Devo Mike. So here we go…..

Schemes to encourage firms to take on young workers through financial incentives often produce short term results with contracts not being renewed after the initial period when the subsidy runs out.  Nor does that encourage proper investment in training and development.  So how about making it n the interest of an employer to not only take on a young person but keep them for a second year?  A Scottish Government with more fiscal powers could offer SMEs a 50% NIC discount on each under 25 employed on a Living Wage or higher for the first 12 months but rising to 100% for a second period of 12 months with a taper off for Year 3. That sort of scheme incentivises worker development and retention not just short term recruitment.  Discuss?

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On Remembrance Day

Wearing a red poppy in November sometimes feels as much a statement of conformance than a meaningful symbol.  Media and public figures can't be seen on TV, the web or print photos without the obligatory poppy on their lapel.  For many on the left of politics, the red poppy has often been seen as a symbol of the military and imperial establishment with all its connections to Iraq and other contentious conflicts. And Celtic supporters like me are only too aware of how the republican leaning members of the Celtic family see the poppy as a symbol of British army oppression in Ireland over the last 100 years.

I don’t regard myself as a pacifist.  I can't see how someone like Hitler, or Franco, could have been stopped without fighting (although the roots of the 2nd world war go back to political and economic decisions made years earlier and that could have been made differently).  I opposed our involvement in Iraq and have been a member of CND for 30 years.  I don’t believe we should be replacing Trident.

 

My own feelings about wearing a poppy began to change 20 years ago when I first started to learn from my Gran in Perth about my great-grandfather's story in the First World War.  An ordinary working man pitched into a hellish experience after leaving the UK to try and find work to support his family (he died from his wounds in Australia after being invalided back after what sounds like from my Gran's description being wounded at Gallipoli).  That started me thinking about seeing the poppy much more as a symbol of the ordinary people who fight and die in wars - whether as volunteers, conscripts or just civilians in the wrong place and time - where they are pretty much the pawns of much more powerful political interests.

That feeling has been reinforced this year where I spent a fair amount of time with my day job working at the Royal British Legion on a big IT project.  I've heard and seen first-hand the day to day work of the Legion helping ex- service people deal with the problems they encounter back in "civilian" life.  Not just dealing with the social effects of wounds and disability, but all of the issues that so concern many of us in the Labour Party; lack of jobs, debt, payday loans, poverty in old age, squalid housing, access to benefits and family support.   They do a brilliant job.  And bluntly, income from red poppy sales is a big factor is allowing them to operate.

So I'll be wearing my poppy today. As a simple symbol of solidarity with all those who have found themselves fighting, dying and surviving conflicts that were not of their making and that we need to work ever harder to prevent happening again.

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Speech to Labour Conference 2012

Below is the text of my speech to conference on Youth Employment.   I didn't get called in the main economy debate, but got most of the points into some of the smaller policy forum discussions and seminars.

 

Colleagues.

Amongst all the talk of deficits and bad bankers, the real scandal of the coalition’s cuts is the impact on the lives and hopes of a generation of young people.

1 in 4 of 16- to 24-year-olds are out of work.

In Scotland, 7,400 young people have been claiming unemployment benefit for more than a year.

And in the Highlands 5 unemployed people are chasing every job vacancy.

These aren’t just statistics. 

They mean that the hopes and aspirations of a generation of young people are being destroyed by worklessness in their teens and twenties.

People need to know that Labour is on their side when it comes to jobs and young people.

Because the other parties aren’t.

The LibDems promise with one hand then cut with the other.

Scrapping EMAs and replacing them with a pupil premium that is anything but.

The SNP talk the language of growth and investment, but their actions are all about avoiding the difficult decisions.

The SNP say no to tuition fees in Scotland.

But they won’t tell you that the resulting cuts to college budgets mean 10,000 youngsters on waiting lists for places. 

Places where they could learn the skills needed for real jobs.

We must be the party with the vision and commitment to ensure every teenager who wants to work has a job or apprenticeship when they leave school or college.

Jobs come from economic growth and we need a business strategy that is joined up where it matters.

In the highlands, that means making sure investment in wind and wave renewables creates jobs and not just profit for the energy companies.

But we need to give our kids the confidence to look at other options as well.

There is a key role for the third sector, supporting young people into work in different ways.

In Scotland, the Social Enterprise Academy is winning awards for its programmes in schools.

I met one of the tutors from these courses in Inverness last week.

She told me about the transformation in the kids she worked with. 

You can imagine the scene.   10 sulky sixteen year olds.

Heads down, arms crossed, “not bovvered”

Beaten by the system before they’ve started …..

After three days turned into engaged young people, full of enthusiasm, self esteem and confidence to achieve.

Thinking about setting up their own social enterprises, creating jobs in their own communities

So all sorts of programmes can have a big impact.

But we need to fund them properly and with long term certainty.

Above all, we need to be bold and see the big picture.                                         

The public sector in Scotland spends £9bn buying in goods and services.  We need to start using that power. 

We need to get smart about buying.

Using community benefit clauses to keep jobs local and create apprenticeships and training opportunities for our young people.

And sending out a clear message to contractors.

If you want to provide goods and services to our councils, then you’ll support local jobs and pay your workers a Living Wage!

Labour must be the party that makes creating jobs and getting our kids back to work a priority.

A labour government in Holyrood and a Labour Government in Westminster, working together to get our kids into work.

That’s why with Labour we will always be better together.

Thank you, conference.

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Conference Diary 2012: Wednesday

NHS Debate

This took up most of the morning , with series of passionate contributions from delegates as well as few famous faces, including Lord Winston and a brilliant speech from Carrie Grant.  Best moment was the elderly delegate from Morecambe who spoke so well -  with some hilarious comparisons of Cameron to various useless medical treatments - used up all her time then pretended she couldn’t hear Angela Eagle (the Chair) when she asked her to wind up and ended up  with the whole conference cheering for her to be allowed to continue.  She got a standing ovation!   

Andy Burnham closed the debate with a barnstorming performance attacking Cameron, Lansley and the “invisible man” new NHS secretary Hunt.  Absolute commitment to reverse the Lansley reforms and take competition out of the NHS.  Standing ovation as he walked onto the stage and when he finished.  I think the opening ovation was for his role in setting up the Hillsborough enquiry as much as his NHS role.  But the comparison between his obvious commitment to the NHS and Jeremy Hunt’s was stark.

Morning session ended with a series of hand and card votes on motions and rule changes.  All passed.

Ed Milliband Q&A

This was better than I expected, with no evidence of planted questions.  Just Ed on his own, no notes, taking questions in sets of 3 or 4, from people he picked himself in the hall.  Some were difficult and off message (Trident, Remploy, public sector wage freeze) but he answered them all.    Maybe all a bit too wide ranging and technical for the TV, but he endeared himself to delegates with his openness.

He seemed to commit himself to looking at the minimum deterrent required to replace Trident and that re-nationalising the railways (after the West Coast line fiasco) was not off the agenda.

Policy Forum: the Green Economy

Made it to this but energy levels were fading fast, so was there more in presence than participation!  Last event I’ll attend as need a quiet night before a work day tomorrow and heading back home Thursday evening.

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Conference Diary 2012: Tuesday

Living Wage

Rachel Reeves led the discussion about the Labour councils across the UK now paying a Living Wage to their staff.  Not just about better living standards.  Staff committement and service quality has improved as a result or more motivated and committed staff. Such a human touch when a very nervous Fran, talking about how the living wage had transformed her life had a microphone failure.  Rachel had to sit with her arm around her to share a microphone.

Missed the chance to speak in follow up debate as still scribbling changes to speech to make it relevant.  didnt stop others who spoke on all sorts of issues.  We did finally get a couple of scottsh delegates in including Gordon Mathieson who was excellent.

Better Together

Fiery speeches from Margaret Curran and Johann along with a great new video.  Session didn't really come alive though. There was no debate or opportunity for speakers which I thought made the session a bit stale.  One for the cameras probably.

Fringe Event: Connecting Britain

Politics Home, Angela Smith MP, Alstom.

Angela Smith: HS2 is a key part of growing and integrating regional economies.  Big investment needs to be combined with devolution of service planning, franchising etc to local regions.

Tim Bently (Alstom: maintains the pendolino fleet).  Build Manchester to Birmingham first.  Big benefits. Need to join up the local bus and tram infrastructure with the right location of HS station. East Coast line could be upgraded to cut 50mins off journey time to Edinburgh without hs2

Leaders Speech

Just brilliant. Relaxed and confident. Talks about himself.  Some really good jokes (dinosaurs).  Key policy announcements; banks, technology Bach; apprentices.  Really took on the Tories with some blistering rhetoric.  Two standing ovations mid speech.  Sealed the deal with the party.  A new kind of prime minister.  Will the country see the same inspiration?

Policy Seminar; growing the economy

Another big Q&A session with economy team; Ed Balls, Chuka Unuma, Rachel Reeves.  Got question in about how we will incent or instruct telecoms companies to drive high speed broadband into rural areas like the highlands.  Shoud it  be a condition of their franchise?  Long shouts of other areas with the same problems from other delegates; Cumbria, Essex; Norfolk, Cornwall and more. This is a big issue across the country.

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Conference 2012 Diary: Monday

Main theme today was the economy and our emerging policies on jobs and living standards.  Great debates and some clear policy commitments from shadow cabinet members to get the economy growing. 

Ed Balls committed to use the money from the 4G spectrum sale to build 100,000 affordable homes.  Read Ed' speech here.  It was a barnstorming speech.  Read it here.

Liam Byrne announced the setting up of a Youth Employment Taskforce.  Read his speech here.

Caroline Flint described the Switch Together initiative she is launching to enable whole communities to act together to get a better deal from power companies. Read her speech here

I had a speech all ready about youth employment so was a bit frustrated that I couldn't get called in any of the three debates today, despite much enthusiastic arm waving to attract the chair's attention.  I wasn't alone.  Dont think a single Scottish Delegate got called.  We needed some Scottish voices in that debate to attack what the SNP are (not) doing and highlight rural issues.

Will publish my speech tomorrow, so comrades can read what I wanted to say.

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Conference 2012 Diary: Sunday

Busy first day at main conference.  Mainly procedural stuff.  Highlight was the Scottish Delagation Reception and Celeidh in the evening.  Brilliant fiery speech from Johann Lamont and we found out that leader of Glasgow City Council Gordon Mathieson can hold a crowd with a Sinatra song just as well as a speech!  You had to be there.

A big theme was how united the party was. 

Made some notes at each session.  Copied them in below verbatim.

Boundary Review Briefing

From Greg Cook, Head of communications and strategy

Well attended

Assumption is that boundary changes will not happen although process continues. Boundary commissions report to parliament by October 2013.  Secretary of state (Clegg) expected to bring legislation to Parliament.  Expected there will be lots of politics around this. 

Would add 1% to swing hurdle for Labour.  Main advantage to Tories.  LibDems stand to lose up to 14 seats as well as danger to incumbency factor.

There will still be a commission after 2015 to review the size of parliament.

Impact on CLPs.

Draft proposals for England due to be published October 2012.

New boundaries would have required new CLPs to be established in advance of selections.  This plan is on hold.

Nick Clegg has said "nothing will change my mind".  And he is a man of his word.

Scottish CLPs will reorganise around Scottish Parliament boundaries.

NEC will probably wait until Boundary Commission proposals for England published (October 2012) and then agree selection plans after that.

NEC retains final authority over all Westminster selections including Scotland.

Fabian Society and ResPublica

Deepening Democracy; can parties reconnect people and politics?

Stella Creasy MP, Peter Kellner, Caroline Macfarland (ResPublica)

A lot of earnest bright young things at this one. 

Peter Kellner: ugov research.  16m people didn't vote at last election.  Not all reachable but 90% is achievable.  People don't like politicians who don't answer questions or who argue for effect rather than from passion.  Big chnage?  Open primaries would be much more inclusive.

Caroline Macfarland; read out a lot of stuff about people's perceptions of politicians but not much about what do do about it.  Academic. Party politics is important but shouldn't be prioritised over other forms of community engagement.

Anthony Rowlands; centre forum and LibDem candidate.  What a waffler. Reputation of parties tarnished by behaviour of parliamentarians.  Candidates must show they are interested and engaged in the lives of ordinary people.  Must be more representative.  Street surgeries work.

Stella Creasy; people need to sense that working together does deliver real change.. We need to engage people between elections not just at them. Relating people's lives to the changes we want to see.  Spoke really well.

The movement for change in Walthamstow.  Its not about process and structure it's about engaging people to change their own lives.

Peter Kellner says the Atticus Finch speech to jury in to Kill a Mockingbird defines what we are about.

Movement for Change

Chaired by David Milliband.  Chief Exec is Kathryn Peraras whol told us her story about engaging her community in Aylesford.  Going door to door to identify support about an issue.

There is no movement in the Highlands. They would like to have one.  Campaigns included the Living Wage, Payday Loans.

Young activists talking about their own campaign.  Mick from Swansea, Finn from Manchester. £7.20 is now the minimum wage at Manchester Uni, for paid and contract staff.  Cleaners now only need one job.

Legal loan sharking (pay day loans) : "don't mourn, get organised".  (Cobden).  Stella Creasy.  17 lenders on Walthamstow High St.  FA should not allow Wonga to advertise on Blackpool or Hearts FC.  Need legislation for a total cost cap.  Increase the roll of local credit unions. #sharkstoppers.  So many families are being held back by debt.  US companies coming here because US states have put a limit on interest rates.

Brilliant example of a "tweet action"; dozens of people in the room exchanging ideas on Twitter using the hash tag.  People committing to do things there and then.

Red Card for Wonga at Tynecastle.

Use Google Adsense to block Wonga and other adverts.

Daveid Milliband:  we may be out of power and frustrated but this movement shows we can still deliver change.

The labour party needs to be a movement not a machine. Movement for Change is about doing not talking.  It means there are no no go areas.  People support back.  It makes the party more like the country's we want to represent.  Politics is about people.

DM very supportive of his brother during his speech.

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Conference 2012 Diary: Saturday

Arrived early in Manchester.  City is buzzing.  As the day wore on, you could see more and more Labour delegates and visitors starting to arrive in the hotels and cafes, gradually displacing the football supporters.

First main event was the evening’s Delegates Reception.  Big queues to get in, mainly I think to get at the Tesco sponsored food and wine before it ran out!   Big buzz when Ed Milliband and Harriet Harman swept into the room, party staffers on point, very US presidential election style.  Short speeches, setting the scene for the next few days.  Harriet Harman in great form, attacking the coalition with some pretty industrial language!   Ed was relaxed but spoke well, welcoming some first time delegates by name and highlighting a key theme for the week; creating jobs for young people.

Then more working the room, lots of 100 mile an hour handshaking and they were gone again.   

So we are started.  Now we can get down to the real business.

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SNP Nuclear Gymnastics = Fantasy Politics

The latest SNP policy gymnastics on NATO and nuclear weapons exposes another reality involved in breaking away from the UK.   See http://www.heraldscotland.com/politics/political-news/snp-considers-trading-share-in-nuclear-arsenal.18193816

I have been a member of CND since the early ‘80s and have campaigned within the Labour Party for most of that time to see the UK give up its nuclear deterrent.  It’s been an uphill and not always very popular –in some party circles - struggle, but sometimes you need to drive change from within.

 Right now, we should be arguing the case against replacing or upgrading Trident.  Not only would that be a better moral position, but would save billions of pounds over the next few years that could be far better spent on investment in our economy, transport (we could have a motorway to Inverness!) as well as other national infrastructure.  

What Salmond and the SNP now seem to be suggesting is that they want to join Nato (for reasons which I suspect are very little to do with defence strategy and a lot to do with not losing support in advance of the independence referendum) but only if Trident and the nuclear facilities are “moved” to somewhere else in the UK.   The costs involved in re-locating Trident to another location will be enormous compared to de-commissioning, but the SNP seem quite happy to propose that UK pick up that bill.  Why on earth would taxpayers across the UK agree to that?  Fantasy politics.

It seems to me that those of us who believe in a nuclear free Scotland are far more likely to achieve that – hard work though it will be – with a UK wide campaign to stop the spending on Trident and argue the case for de-commissioning all our nuclear weapons long term.

An independent Scotland risks still having nuclear weapons on the Clyde but even less influence over what happens to them.

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Letter to the Courier...

Published in Inverness Courier, 3rd April 2012

Dear Sir

Coalition plans to break up national pay bargaining arrangements must surely mean that there will soon be pressure to cut public sector workers wages in the highland as in other areas deemed “lower cost than London”, however spuriously.

In his leaflets and speeches during the Westminster election campaign Danny Alexander promised to put the Highlands first. As the Labour candidate, I was accused of representing a party that had let the Highlands down with plans to put up VAT, raise student tuition fees and had “taken money from hard working families, pensioners and carers in the Highlands and given it to millionaires”.

In government, what is Mr Alexander’s actual record on standing up for the Highlands? Local military bases are under threat or closing, VAT is up and working tax credits down (both hitting low earners hardest) whilst mainland fuel costs continue to rise for most, despite all the promises about a rural fuel discount.

But this latest coalition plan to cut public sector wages - at the same time as cutting the 50p tax rate for the well off - goes too far. Does Mr Alexander have any principles left? Or is power at the heart of the government a price worth paying to inflict his coalition cuts on the Highlands?

And where are our local LibDem councillors on this? Will they speak out before the Highland Council elections in May to condemn what their MPs are doing in their name or will they just bow their heads and go along with them?

Yours sincerely

etc

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Scottish Labour Conference Speech

I spoke in the Local Government debate at conference in Dundee last weekend.  Here's what I said.

Conference.

We have talked a lot about trust in the last few days.

The council elections in May are an opportunity to re-build some of that trust with our voters.

People need to know that Labour is on their side in tough times.

Because the other parties aren’t.

The LibDems can’t stand up for local services whist they are imposing their Coalition Cuts.

And the SNP only want to win council seats as stepping stones to independence.

Labour must be the party that will make local government work.

Local government that sees protecting local jobs and getting our kids back to work as a priority.

We must be the party that will lead a four year campaign to ensure every teenager who wants to work in the Highlands has an apprenticeship or training programme leading to a real job, when they leave school or college.

Labour needs to deliver joined up services. Joined up services work for communities, get used and cost less to deliver.

Let me tell you about the woman and her son I met door-knocking in a wee village five miles north of Inverness last weekend. She is her son’s full time carer – he has severe learning challenges.

She had been pleased to hear that Highland council had ring-fenced the funds for the day centre he attends in Inverness.

Then she found out that a separate budget for the community bus had been cut, so she and her son can’t get to Inverness to use the service.

Small cuts can have a big impact.

Working out how to deal with the SNP’s cuts to council budgets will not be easy.

We need to listen hard to local communities and work out how to use limited budgets effectively.
We need to be bold and see the big picture.

A big part of that will be to get smart about buying.

The public sector in Scotland spends £9bn buying in goods and services. We need to start to using that power when we go out to tender.

We must build in community benefit clauses that keep jobs local and create apprenticeships and training opportunities for our young people.

And we need to send out a clear message to contractors.

If you want to provide goods and services to our councils, then you’ll pay your workers a Living Wage!

Joined up public transport matters. It’s key to both a strong economy and sustainable communities in rural areas like the Highlands.

And for all their talk, the SNP are showing by their actions that they care nothing for rural Scotland.
Ferry charges to the islands up and freight subsidies down.

The £50m promised to upgrade Sleeper Services to London diverted to other projects.

And we know we won’t see the regulation needed to make rural bus service run in the interests of their passengers whilst Brain Souter holds the SNP’s purse strings.

We need to be the party that delivers effective regulation to join up public transport across the Highlands. And maybe its time to think about ownership models that work in the interest of our communities, not bus and train operators.

But above all, Labour must be the party that will bring democracy home.

Whether it’s about community schools or local fire services, wind-farms or new supermarkets, local views should count. We need to be the party that listens.

We need to be the party that people trust to be on their side in tough times.

We need to be Labour.

Thank you, conference.

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The Question Question

Whether we like it or not, the independence referendum will dominate political debate in Scotland until the question is settled.

Just when we should be focussed on growing the economy, protecting jobs and creating opportunity for our young people, the SNP will ensure the next 24 months are all about the politics of conflict and separation.

So if we are going to have one (a referendum) we should make sure we get it right and settle the issue once and for all. What I want to see is a definitive mandate from the people of Scotland, which makes absolutely clear to the Scottish Government what they want.

There are all sorts of permutations of 2 or 3 questions which we can debate. The problem is agreeing the wording and then interpreting the outcomes. Based on current opinion polls, its likely that a 3-question referendum which posed the options of status quo, independence and “more devolution” would result in a majority for the last option. But that would allow the SNP to continue to pursue an independence agenda on the basis that the majority had not actually said “no”.

I’m pretty sure this is why Salmond keeps talking up the 3-question argument.

At the same time, a simple 2-question referendum, “status quo” or “independence” does not provide much of an option for the many people, like me, who want to see more economic and social levers brought under direct Scottish control. That vote – and it might be substantial – could split or abstain, with unpredictable results.

I was reminded last week, that the 1999 Devolution Referendum found a way round this kind of problem; the first question was about the principle of devolution (a straight yes or no) the second, which was only relevant if you answered “yes” to the first, asked whether you wanted additional powers to be devolved, in this case the 3p income tax variation.

So how about a two question referendum like this:

Question 1: do you want the Scottish Government to negotiate the separation of Scotland from the UK as an independent country (Yes or No)?

Question 2: if Scotland remains part of the UK, do you want the Scottish Government to negotiate the devolution of more economic and social powers to the Scottish Parliament (Yes or No)?

With this approach, we get a clear mandate for or against independence. No debate.

If there is a majority vote against independence, but for more powers – which is what I’ll campaign for - it gives the Scottish Government a mandate to negotiate that, but removes the option of independence as an eventual outcome. The political debate would then be about the economic, social and other policies which best suit Scotland without the emotional distraction of nationalism.

Such an outcome would nicely cook the SNP goose, just in time for the 2015 Westminster and 2016 Scottish Parliament elections. If you agree with me, how do we make it happen?

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