How to encourage growth
Better cuts and more Keynesian spending programmes says Iain Malcolm
Following this post I posed the following questions to a number of our South Tyneside politicians of ALL parties, including the new “South Tyneside First” group of councillors, I also asked for opinions from some of our local businessmen and nationally recognised prominent bloggers and commentators:
If you were in a position to be advising the Chancellor and the Prime Minister, what would you be telling them about efforts to achieve deficit reduction and balance the budget?
How would you advise them to promote growth in the British economy to increase Treasury revenues?
What steps would you advise taking to help our local authority in South Tyneside promote the right conditions for job creation and improve consumer demand locally?
Sadly, some haven’t even bothered to engage or contribute to the discussion, one decided he could only contribute if I gave him space to openly criticise officers of South Tyneside Council (which was not within the remit of the discussion because officers do not decide upon policies), another said he would contribute but failed to do so. The ONLY local politician who took the time to send some carefully considered comments was Labour’s leader in South Tyneside Cllr. Iain Malcolm, who told me this:
The deficit, caused by the greed of the bankers not the last Labour Government’s spending on infrastructure, needs to be reduced. However the Tory-led Government are using the deficit as an excuse for making deeply ideological cuts in public expenditure. The Government should be clawing back the unpaid tax by multi-national corporations and taking a leaf out of local government for ways of streamlining their civil service budgets. The Prime Minister has admitted that Councils are the most efficient part of the public sector, so send in the Local Government Association to review Whitehall expenditure with a aim to making drastic savings in their budgets.
But we also need growth in the economy and that means Government spending on economic infrastructure projects, I would rather pay people to work and receive their taxes than pay them for being unemployed. The Chancellor himself is starting to realise his austerity plans are not working and the deficit will need to be reduced over a longer period of time.
The greed of the banks nearly led to a total collapse of the economic system, if Gordon Brown had not stepped in (where other world leaders failed to lead) and reassured the public that their savings, pensions and homes were safe, we would have been in a far grave state than we are today. There would have been public panic (as witnessed over Northern Rock) on an unprecedented scale with possible social disorder. Whatever else one feels about our former Prime Minister remember it was his bold leadership that prevented a complete melt-down.
Finally, there needs to be greater regulation of the banking system – the light touch of the former Government (supported by the Conservatives at the time) clearly didn’t work.
It’s a fairly straight down the middle “follow the party line” sort of statement, but it does not show any real vision or initiatives to help the local economy in South Tyneside return to growth. there is no commitment. for example, to retain zero growth in Council Tax rises which would help maintain the little spending power that consumers have right now, and spending power is what lights the blue touch paper of economic growth.
However I’m very grateful and thank him for his participation.
In the table below are the combined thoughts and initiatives of the independents, Conservatives, UKIP, bloggers, and business people.
Not very encouraging is it?
Perhaps this is one part of the explanation as to why we have such a heavily Labour dominated council here.
This is from UKIP Cllr. David Potts
It never fails to amaze me that Labour politicians have the sheer nerve to blame the financial sector for the global economic situation. Coun Malcolm states that the crisis has been “caused by the greed of the bankers”. This is a pathetic throw-away comment backed up with zero evidence, and Coun Malcolm is intelligent enough to know this. Gordon Brown sold UK Gold reserves in the $200-300/oz range. Today, it is trading at $1600/oz. The Labour Government spent money like a drunken sailor, and the mantra that they “didn’t fix the roof while the sun was shining” could not be more accurate.
It really annoys me when governments blame the financial sector for operating within the regulatory boundaries that THEY create in the first place.
However, we must move away from national and global issues and focus upon what matters to us as councillors; South Tyneside. The highly respected think tank, IPPR North has warned that the South Tyneside jobless rate is set to skyrocket, particularly among our young people. It is deeply concerning that Coun Malcolm and his £170’000PA Chief Exec, Martin Swales publically comment that it is nothing to do with them and it is ‘all the evil Tory Government’s fault’. That is nonsense. II speak to local business people regularly. I know one energy broker who offered to save the council hundreds of thousands of pounds by switching their suppliers. His exact words were “I tried, but it was pointless, it’s a closed shop”. There is an active movement among the business community in South Tyneside to push ahead an agenda of progress and growth through directly influencing Council policy via peaceful protest and diplomatic pressure.
Now would councillor Malcolm like to tell us how many local firms are involved in the building of our new swimming pool complex? Would he also like to explain why suppliers of materials to South Tyneside Homes were based hundreds of miles away down South?
Look after the people of your Borough first.
Coun Malcolm and Mr Swales take people for fools and playing on this nonsense assertion that they are socialists. If they are socialists, I’m a Dutchman.
This from George Smith, President of South Shields Conservative Association.
I asked our Campaign Director (Dorothy) for a brief, but they “don’t do Blogs”.Sorry about this, according to the Levenson inquiry they do Twitter, a bit too much for me.