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Your Tax Money At Work

MPs\’ Pay

MEMBERS of parliament could lose the right to vote themselves pay increases under plans to link their salaries directly to the earnings of judges and other senior public sector staff.

Gordon Brown, the prime minister, is understood to be “sympathetic” to proposals that would ensure the pay of MPs is in step with that of judges or senior doctors, most of whom earn at least £100,000 a year.

Hmm. Let us think about this for a little bit, shall we? A judge will have had to go through a number of qualifying stages. First to become a lawyer. Then to actually become a good one (no, they don\’t promote the dunderheads). A working career of 20-30 years perhaps, being monitored all the while. Then there will be, at some point along the way, trainee judgeships: things like a part-time Recorder (something Cherie Booth has done, as an example). Finally, our lawyer, who has done this part-time judging so that people can evaluate ability to do the job, might get appointed. And, at least usually, take a pay cut when becoming a judge.

Doctors? To become a senior doctor (or a GP), you first need to get top end results at A level to even get into medical school. Then there\’s the first degree and some further years of training. 7 in total I think it is. Plus some further years of on the job training to get to the point where one is indeed making that fabled £100k. Something like a decade all told: less time than a judge, certainly, but then one is not taking a pay cut when reaching that peak.

And to become an MP? Well, let\’s be honest about this, shall we? For most of the UK constituencies are in fact one party states. Aberystwyth (or however you spell the damn place) or Islwyn will elect a donkey as long as it wears a red rosette. Hull East is coming up for selection and everyone knows that the Labour Party nominee will become the MP. Similarly, if Boris wins the Mayorality and leaves Henley, no one thinks that anything other than the Tory Party hustings will determine who the next MP is. Thus for most (many?) MPs, certainly those who actually expect to make a career of it in a safe seat, becoming an MP is about greasing up to the small number of people who determine who the nominee is for a certain party in a certain seat.

And the argument is that this skill should be equally rewarded as the other two?

I think not.

MP\’s Pay

There is a simple solution to this particular part of the problem:

Last night, Labour sources disclosed that one of the problems in getting MPs to show restraint is the high number who plan to retire at the end of this Parliament.

This is a problem because pensions are linked to their last salary.

Adopt the American system. Pay increases are indeed voted upon by the chamber to which they apply: but they only come into force after the next election.

Turkeys and Christmas

Well, this is a surprise, isn\’t it?

Arts Council England (Ace) was plunged into a crisis when 500 of the country\’s top actors passed an unprecedented vote of no confidence in the organisation over cuts it is making in grants to almost 200 theatres and music companies.

The supplicants for your and my money are hardly going to cheer when the swill trough is removed now, are they?

Mr Hewitt was told by Sam West, Alison Steadman and Caroline Quentin that hitting regional and London fringe theatres would have a damaging knock-on effect that would lead to the whole of British theatre being "starved " of plays, directors and actors.

Snigger. Cue Dr. Strangelove and the mines gap. One thing the UK is never going to have a shortage of is luvvies.

Let\’s get this straight shall we? There shouldn\’t be any taxpayer subsidy for the arts. You like it, you love it, great, get out there and do it. If you\’re not good enough to draw a large enough paying crowd to make money out of it then you\’re going to have to do it for free.  There\’s really no reason to tax the dustman and the nurse for this indoor relief for that part of the population that likes to show off.

 

British Honorifics or, How To Address Politicians.

Hundreds of Iraqi interpreters employed by the British Armed Forces in Iraq are being rejected after applying to live in Britain for their own safety.

Out of 700 who have now applied through the Ministry of Defence for the special settlement scheme announced by the Government last year, 300 have been rejected already, the MoD said yesterday.

Only 170 have been told they are eligible, and the rest are being processed. Successful applicants will be allowed to bring their closest dependants, including grandparents, if the Home Office accepts them as refugees.

An additional 180 Iraqis have applied through the Foreign and Commonwealth Office because they worked at the British Embassy in Baghdad or at other diplomatic missions. Of these, 38 have been turned down either for the settlement deal or for the alternative financial assistance package, The Times has learnt.

Defence sources said applicants were failing to meet the Government\’s strict eligibility conditions under which ex-Iraqi employees are required to prove 12 months of continuous employment with the British forces.

This system designed by The Honourable I\’d like a 10% pay rise and The Right Honourable no you can\’t see my expenses claims.

Forgive my visions of the mobbing peasantry descending upon them, pitchforks waving and brands alight.

Raising MP\’s Pay?

Not on these figures matey:

Pensions for MPs will cost taxpayers nearly three times the original estimate, it has been revealed.

The annual bill for funding MPs\’ generous final salary pension schemes could be as high as £20.5 million – or £29,000 for each one.

Of course, this isn\’t the figure publically announced:

The most recent Commons accounts report that the cost to the taxpayer of paying for this scheme is £7.8 million – or £11,000 per MP.

However this is calculated using an optimistic view of the stock market. Under an accounting treatment used by most companies and public bodies, the actual cost is £20.5 million, or £29,000 for every MP.

Pension contributions should be counted as pay, at least for the purposes of measuring the relative incomes from different jobs. For they are a form of delayed pay.

But as I\’ve said before, MPs are currently grossly over paid, as evidenced by the fact that so many people are both qualified to be one and eager to be so.

 

Climate Change Policy

Want to know why the actual policies put forward to deal with climate change are so crap?

John Hutton, the Business Secretary, would like to see 7,000 wind turbines built off the British coastline by 2020. That’s roughly two a day, if we started construction now, worked flat out, even weekends, had enough engineers for the job (did I mention Network Rail?) and everything went without a hitch.

“It’s crazy,” says Sue Ion, from the Royal Academy of Engineering. “Building wind turbines in a difficult marine environment is not an easy job. This is a serious engineering challenge that hasn’t been thought through properly.”

In September the academy, backed by the large engineering institutions, proposed a feasibility project to see whether Government ambitions to green the nation were technically doable. The project would, according to Dr Ion, provide a kind of engineering roadmap, assessing current technologies and forecasting research still required. Best of all, it would cost a miserly £750,000 and be free of vested industrial interests.

Surprisingly, the Government has yet to respond. Dr Ion admits her frustration: “The science on climate change is clear but people have forgotten that engineers have to apply that science. It’s all very well to say that we’ll have 20 per cent of our energy coming from wind power by 2020, but that’s useless if nobody’s done any studies on how that’s going to be delivered. If people continue to set unrealisable targets, Government policy will begin to lose credibility.”

Because everyone\’s missed a rather important point. Having accepted the "scientific consensus" everyone is now shouting out in their own best interests. If you are indeed going to accept the position of experts, wouldn\’t it be rather useful to listen to all of the experts? The engineers, say, the economists perhaps?

Instead of the political process, which is simply a sorting though of the various special interest groups?

Planning, Gorgeous Planning!

As we know, the training of doctors in the UK is a government monopoly. While they control the medical school numbers only indirectly, they control the number of NHS training posts directly. Thye system is thus planned from the centre:

Three applicants will be fighting it out for every post and in some surgical specialities competition ratios will exceed 20 to one.

This centralised planning thing works really well, doesn\’t it?

What an Excellent Idea!

The Bank of England has been sidelined in a proposed shake-up of Britain\’s banking system that will hand greater powers to its regulatory partners, the Treasury and the Financial Services Authority.

Chancellor Alistair Darling has limited the Bank\’s contribution in the event of another Northern Rock to an advisory role while giving the FSA new powers of intervention.

Let\’s take regulation of the banking system away from bankers and give it to people who don\’t know what they\’re doing. What a clever idea!

There\’s a Simple Way To Do This

Grr:

Parents could be required to provide their children with high-speed internet access under plans being drawn up by ministers in partnership with some of the country\’s leading IT firms.

Jim Knight, the schools minister, said he is in talks with companies such as Microsoft, BT, Sky, Virgin and RM to help close the widening achievement gap between pupils from the richest and poorest families. More than one million children have no access to a computer at home.

Let\’s start from the premise that this actually is a good idea. OK, what\’s the best way of getting universal access to the web for all schoolchildren?

In an interview with the Guardian, Knight signalled that the government was putting pressure on IT firms to bring down the cost of equipment if internet connections are in effect made compulsory for nearly six million children.

Erm, no, that\’s probably not it.

I\’m rather out of date but I think you can get access for £10 a month or so? Great, add £2.50 to the child credit for every first child (we already have different amounts for first and further children, don\’t we?) and tell parents that they\’ve got to have said net access. Problem solved.

The only problem with this is that while it might be cheaper, more sensible and more efficient, it doesn\’t allow ministers to look good while sticking it to the capitalists: it also makes clear, because it has to be paid for from taxation, what the real cost is. Can\’t have that now, can we? People actually knowing what the cost of something is?

Who is Buying the Art?

Can someone explain this a little more to me?

In 2004/05, MoD civil servants bought a set of paintings by Zil Hoque called Nimbus I, II, III, IV at a cost of £160,000.

They also bought a set of four paintings by Louise Cattrell – Eyrie, Aerial, Tempest and Keep – that cost £72,000, all excluding VAT.

Now, I could understand there being a central art budget, one which is then apportioned out to the various departments. Justified perhaps by saying that something has to hang on the walls and why not support modern art while we\’re about it? That wouldn\’t be a justification in my eyes of course, but I can see how it would pass muster with those making the rules.

Is that actually what is the case?

Might I suggest something a little cheaper? I\’m told that all museums have vastly more art than they can actually show: they\’ve got basements full of stuff that never sees the light of day. Why not simply sprinkle some of that on the walls for the delectation of our servants: we\’ll keep the cash for ourselves, thanks very much.

I\’ve Come Over All DK

Apologies, but this is rather a red curtain of blood moment:

In a New Year message to NHS staff, the Prime Minister indicates people may have to fulfil new "responsibilities" in order to establish their entitlement to care.

What is the snot gobbling fist clunker on about now? Responsibilities? Establishing an entitlement to care?

Is being forced at gunpoint to pay for it every working day of ones\’ life no longer enough?

Hilary Benn on Climate Change.

There\’s something slightly unfortunate about this:

The world now understands that climate change is not just an environmental problem. It\’s also a security, economic, political and migration problem. What are we going to do when people begin fighting not about politics, but about water? What will we do when people start arriving on our shores fleeing not political persecution, but environmental catastrophe? And what will we do when the countries to which we sell goods can\’t buy them any more because they are having to deal with rising sea levels or crop failure?

The current estimate for climate change refugees is some 200 million over the decades. That is, on a yearly basis, about the same as the current global rate of international migration (no, not the UK one, vastly inflated by intra EU movements). While it\’s something to think about it\’s not a major problem. Water has a simple solution. Allocate property rights and price it correctly. Where water does cause conflict (say, arguably, Darfur) it is because there are no clear rules on who owns access to what water there is. As happens with any commons, when demand for the resource outstrips the natural capacity then management of access must be instituted.

As to falling exports, that\’s inane: we\’ve known sincce 1817 that it is imports which are important, not exports.

The unfortunate thing about this is that the writer, Hilary Benn, is the Secretary of State for the Environment, our chief negotiator on issues to do with climate change, and he clearly has no clue as to what he is talking about.

Planners and Targets!

Glorious Tractor Production is up again Comrades!

Targets intended to cut long waits in hospital Accident and Emergency units have cost the NHS in England £2 billion over the past five years, an assessment of healthcare information has concluded.

The extra costs come from patients who are in danger of having to wait more than four hours in A&E – the target limit – and are admitted to hospital “just in case”. Many are later discharged the same day, suggesting they had no real need to be admitted, with today – Christmas Eve – having the highest proportion of patients sent out on the day of admission.

Primary care trusts have to pay as much as £1,000 per admission, compared with about £100 for a patient treated in A&E. So the costs of admitting a patient – even for less than a day – are large.

Data collected by the CHKS Group, an independent provider of healthcare information, suggest that over the past five years, about two million extra patients were admitted to hospital through A&E units in England.

The way they\’ve collected the statistics across the different nations of the UK seems to show that they\’re correct. My, how lucky we are to have such sensible people attempting to direct, in detail, 1.3 million people from the centre!

Client States

There are legitimate arguments for this:

Billions of pounds are being spent on schools in deprived districts in Labour strongholds at the expense of pupils in more affluent areas, new figures show.

Precisely because Labour does best in deprived areas, and deprived areas need more to spend on education.

Having been even handed about it, let me say that I don\’t actually believe it. It\’s part and parcel with the distribution of health spending (remember when it was Labour held marginals that weren\’t getting local services cut?). It\’s actually exactly what we would expect politicians to do: spend money on their supporters at the expense of those who do not support them in order to tie in their votes. Almost a version of gerrymandering, the creation of client states.

Labour has more than doubled education spending since 1997 from £29 billion to £63.7 billion this year.

But there are already fears that the money has not been well spent.

Gosh, there\’s a surprise. The important lesson still hasn\’t sunk in: it\’s not how much you spend, it\’s how you spend it. According to one or other of the various such rankings, Finland and Sweden have the best education systems in the OECD. They both have variations on a voucher system for education funding.

This might not be a coincidence, you know?

MPs\’ Pay

I\’m afraid Iain Dale gets it rather wrong here:

Whenever I have written about this subject before it\’s provoked a torrent of responses from people who believe MPs shouldn;t be paid at all, let alone paid £60,000. Absolute tosh. What those people are arguing for is a Parliament full of rich people who can afford not to be paid. Surely we should pay our MPs at a level where few would actually be put off standing for Parliament. I\’d like Parliament to be representative of a number of professions, but few people from those professions would think about standing for Parliament because they would have to take a pay drop. Relatively junior managers in industry or the public sector now command salaries in excess of what MPs earn. What message does it send out that we are happy to pay MPs the same as the Deputy Public Affairs Manager of an NHS Trust?

The value of any job in a market economy is set by supply and demand. We have a (relatively) fixed demand for MPs. Some 630 or so (roughly, isn\’t it?).

At the last general election some 3,000 people stood for one of those seats. Some will say that some were markedly unqualified (from Monster Raving Loonies to Trots of various types) but this isn\’t, in a democracy, a valid position to hold. Any and every one of us is qualified to be an MP: that\’s what rule by the people means.

So as we have 3,000 qualified applicants for some 600 jobs, clearly, we are overpaying those who do it. MPs pay should therefore be cut, radically.

In fact, back in the day when being an MP attracted no salary at all (only Ministers were paid) we had no shortage of MPs. Thus we would have no shortage now if MPs were unpaid now (that is arguable, but do you think there would be a shortage if this were the case?).

Cut MPs pay and cut it now!

You What?

GORDON BROWN has set himself on a collision course with the legal establishment over plans to give civil servants and government agencies the power to remove people’s passports without going through the courts.

Senior legal figures, including two former attorney-generals and a lord chief justice, have expressed deep concern about preparations to adopt new powers to confiscate passports. They warn the government not to use reform of prerogative powers as an excuse to force through a “serious” curtailment of long-standing freedoms.

They have attacked proposals in the child maintenance bill, now going through Parliament, to allow civil servants to prevent errant fathers who refuse to support their children from travelling abroad.

Let me get this straight, a clerk in the Child Support Agency (which, as we know, is so terribly efficient in itself) has the right to take your passport away? That is the proposal?

Crippled Jesu C on a crutch, what will they think of next? I think we\’d all be wise to take William Buiter\’s advice, collect as many nationalities and passports as you can.

Your Tax Money At Work

A quite splendid use of the money extorted from you at gunpoint, don\’t you think?

The Ugandan president, Yoweri Museveni, is to buy a new Gulfstream presidential jet for £24m after convincing MPs that his £16m plane bought seven years ago is out of date.

The UK is of course pumping £700 million into Uganda over the next decade to reduce poverty. No, of course, none of that will pay for this plane, none at all: except of course that money is fungible.

And Musuveni is actually one of the better of the African leaders for this sort of thing.