Archive for the ‘Employment’ Category
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.
What is beneath the gloss?
So now that the Diamond Jubilee parties are over and we bask a little longer in the glow, the next party is upon us from tomorrow in the shape of a footballing feast known as the European Championships in Poland and Ukraine. Another few weeks of supermarket prodding will have us overfilled with lager, beer, and frozen pizzas, our homes and cars will be draped with the flag of St. George, the “red tops” will exhort the England football team to glories well beyond their reach (they have only ONCE reached the semi final of this tournament), the new flatscreen TVs will be overheating, and when it all ends……….well there are the Olympics and Paralympics to look forward to in London, along with commercially sponsored torch bearers. One only hopes that South Tyneside Council is NOT tempted to mount the giant screen in the park again, I fear the demand will not be there to sit and watch in a South Shields park!
Of course our politicians will probably be a little more sanguine than myself, especially having invested so heavily in the London Olympics, and I confess most of the Olympian sports hold little interest for me even though there will be some football in Newcastle, but for others this will indeed be a veritable feast of summer sports with Wimbledon and Test Match cricket thrown into the mix. David Cameron and News International will be hoping to share the glory of English and British sportsmen and women as the medal count increases the “feel good” factor and the national index of good cheer. Parliament will be enjoying its long summer break with only the Leveson inquiry interrupting the good news, yet quietly gurgling away beneath the veneer of good cheer and “gloss” will be ……………………the economy.
Let’s not forget, that this is the main event!
After two years of a Conservative led coalition government the track record is not that impressive, the deficit continues to grow (albeit at a slower pace), the national debt is still woefully out of control, borrowing is still at record levels and getting higher, public expenditure is higher now than in the last years of Brown’s disastrous administration, so much for the cuts eh? The slight saving grace is that unemployment has not yet broken past levels which might lead to the sort of civil unrest witnessed in Greece. The Eurozone crisis refuses to go away, banks still appear to need recapitalisng (again) and none of the major European players seem willing to take the bull by the horns and dismantle the single currency. All the while the pan European policy appears to be one of further austerity, less public spending, and increasing taxation, as near every nation in the EU other than Germany slumbers along on virtually zero growth.
Growth? Did I mention growth?
Ah yes, who has the secret elixir which will put more money into the hands of consumers or savers? It is they alone who can provide the demand and stimulus that economies need, and any person in South Tyneside who tells you that they couldn’t use a few extra quid a month is madly deluded. Banks rely on savers to swell deposits, greater deposits create more capital, more capital creates greater liquidity which normally leads to easier lending and investment, yet the current economic cycle has brought us interest rates which creep closer to zero and discourage any saving at all. Similarly current personal and indirect taxation levels do nothing at all to inspire consumer confidence and help us to prioritise our spending on essentials such as mortgages and rents, fuel, and keeping our older cars on the road for even longer. It is almost a pan European deflationary cycle. Our own government is caught up in the very same frame of mind as Labour’s outgoing Chancellor Alistair Darling who was equally determined to reduce the deficit whilst raising taxes and sending out hopeful signals on government expenditure. Neither Labour nor the current coalition appears to have had a “plan B” that might have included some major initiatives to promote economic growth and rekindle consumer demand.
So, sadly, whilst we are in the summer party of love mood we have to remind the politicians that “it’s the economy stupid”, and with that in mind I’ve asked some of our prominent politicians in South Tyneside, along with some business people and other bloggers for their ideas on what we need to do to get our local and national economy on the move. Of course your own ideas are very welcome too.
Obsession with tourism must be troubling me
I woke fairly early this morning after a long and troubling dream in which I had just witnessed the opening in fifteen years time of the newest South Shields entertainment initiative. Iain Malcolm South Tyneside’s (by then) veteran Labour Leader had seen his latest dream come to fruition, somehow he had cobbled together enough European and UK grants in a public/private partnership to have the old telephone exchange in Crossgate, South Shields transformed into a neo-gothic styled restaurant and night club, South Tyneside Council were to get first call on use of the place and a private operator would use it at all other times. The whole of the interior had been stripped out by a force of new apprentices especially employed by the private contractor as part of the scheme, the exterior had been clad in granite and limestone and people were impressed at how much it resembled the architecture of the Town Hall in nearby Westoe Road with its solid oak main doors and traditionally styled stained glass windows. However it was the inside of the place which really caught everyone’s attention, this was South Shields’ tribute to Westminster Hall, a magnificent chamber supported by huge columns and a fake fan vault ceiling, this was to be the most opulent medieval banqueting experience in the north-east! Malcolm had ensured that old craftsman ship had been revived to some extent with carved English oak and carpentry skills taught to young lads, others were passing on the skills of the stonemason, it also housed the most modern computer controlled laser lighting system and state of the art sound system, within fifteen minutes the main hall is transformed into a multi faceted entertainment complex, yes we all agreed this was a tremendous achievement in fifteen years. The levels of kitsch were unbelievable.
Why not, we all thought, tourism had grown as a significant part of the north east economy since the dark days of 2012 when it only accounted for around £200m worth of business, these days we are reaping the rewards of over £500m per year from visitors who come to see amongst other things our enlarged Roman Fort with its added reconstructed walls, the new swimming pool and alongside it the new leisure centre opposite the beach continue to thrive even in wet weather. The multiplex cinema and outlet shopping on the Dragon had proved to be a big hit, and even Jarrow had benefited from huge upgrades and a new visitor centre for St. Paul’s church where the history of Bede is now a major pull. Pulling it all together is the new fleet of privately operated electric mini buses transporting folks from one attraction to the other, plans are also in place by a local taxi company to replace the whole of its fleet of cars with the latest Nissan electrically driven model. They would be necessary as petrol driven vehicles were no longer allowed in the town centre – that had killed off the old car parking debates ten years ago – and visitors were “encouraged” to use the park and ride facilities near White Mare Pool. Furthermore the expanded Ocean Beach Leisure Park and the illuminated sea front was drawing almost as many visitors as Blackpool, and they all had comfortable beds to sleep in at the new hotels at the Pier Head and Harton Staithes, which in turn had sparked a resurgence of the guest house trade on Lawe Road and Seafield Terrace.
Malcolm was beaming in his old age on the opening night as two hundred local dignitaries dined in the splendour of the new Cloisters On Crossgate, after a five course meal they were entertained by South Shields latest X Factor winner Geordie Robson who had seen his first two albums go “platinum” in the download charts within a month of release, the event was broadcast live on NETV and on South Tyneside Council’s website which was now enjoying the experience of having 10000 visitors for its monthly half hour meeting of the Borough Council where Cabinet decisions are rubber stamped. Yes, we all felt proud, an odd mix of Keynesian economics and private enterprise was driving money into the area, things could only get better (good grief Robson was even crooning that old chestnut on opening night).
Then I woke up!
With a house full of teenage guests, the sight of a blocked WC at 08:00 was no fun at all, and the temperature of that water was a complete shock to the system!
I put the dream on the back burner.
Former Garland’s building sees new occupiers
Good to note that (without a lot of publicity) the former CJ Garland’s call centre on Long Row, South Shields is now in the process of firing up its telephone lines again, as a local “outsourcing operation” has moved from the old Co-op building in Jarrow to occupy part of the controversial building behind River Drive. The company has a number of accounts and plans to increase its account handling capacity and “seats” with the move to larger premises.
It is unlikely that they will require the whole of the former CJ Garlands site, and others may well be invited to occupy other parts of the building as landlords increase their urgency to see some returns in a market still not fully affected by the economic downturn.
One hopes that any levels of local protest will be far quieter than previously heard when Garland’s moved into the riverside site, having got used to neighbours once I’m sure they can do it again, after all the chance to create new jobs in South Tyneside must surely be a goal for most people?
Welcome back my friends.
First a bit of music to cheer you all up, and may I extend a big welcome to you all as we begin a New Year in South Tyneside’s first and oldest political blog, I wish you all a Happy New Year and hope that it brings some sort of cheer to you. I cannot promise that output from this desk will be any more frequent this year than it was last, a new lifestyle here leaves me a bit less time to write and my passion for photography at South Shields Daily Pictures also competes for my online time. However, with a long drum roll let’s get started with things for 2012.
National and international predictions
Financial and political pressure within the EU continue to build as a realistic solution to the Eurozone crisis fails to materialise, as referendums in Greece and Ireland initially reject further austerity measures relating to the latest bail out plans. Calls to remove these countries from the Eurozone are thwarted as both nations are forced to hold a second vote which confirms their compliance with the Commission’s wishes. Massive unrest on the streets of Athens leads, for the first time, to a pan European peacekeeping force being deployed in Greece to keep its citizens under control.
David Cameron decides that Britain will not contribute any personnel to the new force, and further reduces Britain’s contribution to the IMF, stating that our financial problems require us to keep more of our finances at home. Nick Clegg threatens to pull the Lib-Dems out of the coalition in protest at the Conservatives outright hostility to the new EU plans designed to bring stability to the markets, however because of Labour’s weak position under Ed Miliband a combination of Tory and rebellious Labour MPs win the day in a Confidence debate in the House of Commons, thus tying the Lib-Dems into the coalition. Rebel Labour MPs claim this was the best way to ensure the total demise of Lib- Dem MPs at the next general election whilst buying more time for Labour to reorganise.
In America President Obama wins a second term, although very narrowly, after providing logistical and intelligence support to Israel when they successfully bombed a number of Iranian nuclear facilities the week before President Ahmedinijad was expected to announce the testing of his country’s first nuclear weapon.
In Russia Vladimir Putin is elected to lead the nation again, but there are strong doubts about the integrity of the elections, massive unrest in Russian cities is dealt with firmly and harshly, and following warmer than normal friendly talks with neighbouring states regarding trade agreements and energy supplies, observers begin fearing for the independence of the Baltic states (Latvia, Lithuania, and Estonia) as nationalist parties there see a massive rise in popularity after the EU’s enforced austerity measures spark riots.
North Korean leader Kim Jong Un announces a new treaty with Iran, promising to help them rebuild the facilities destroyed by the Israelis. Increased defence spending in the secretive far eastern state has resulted in a larger American military presence in Australia’s Northern Territory and the permanent patrol of a full battle ready US fleet in international waters close to the Korean peninsular.
China continues to be the world’s leading economy but still shows little appetite for increasing it’s spending on imports, preferring instead to produce good quality copies of foreign article for home consumption, Obama’s pleas for relaxations in China’s trade policies fall on deaf ears.
The case in San Mateo County Court in California involving three South Tyneside councillors and an officer rumbles on seemingly interminably with no prospect of either a firm result and conclusion, or a commencement of proceedings in a British court. The costs of the matter are used as a political weapon during the local government elections in May.
Fifteen South Shields boys and girls attend the X Factor auditions in Newcastle but not a single one makes any progress, meanwhile late in the year Little Mix release an album to mixed reviews which does well in the charts but does not reach No. 1, fans had a liking for the new material but complained that five covers in the album were probably too many. As the year closes Little Mix prepare for their second UK headlining tour. Meanwhile Joe McElderry had released an album firmly in the dance genre after expressing disappointment over the sales of his Christmas Classics collection of cover songs, he also decided to accept the offer of a part in a West End musical and will be appearing in panto at the end of the year at Newcastle’s Theatre Royal.
South Tyneside’s jobless figures continue to rise although not at the massive rate that some had feared, local employment prospects are boosted by the announcement from Nissan of their decision to build a further two new models at their massive plant in Washington.
In the local elections in May Labour takes an absolute stranglehold on local politics as virtually all opposition in South Tyneside is wiped off the map. Cllr Geraldine White loses her seat to Labour in Fellgate and Hedworth, Lawrence Nolan fails to hold Harton for the Progressives after the retirement of Jimmy Capstick, the Liberal Democrats disappear as Joe Abbot loses to Labour in Hebburn North, Labour regain Horsely Hill in a close contest as Independent Alliance councillor Gordon Finch loses his seat, in Monkton John Hodgson somehow manages to fend off Labour’s challenge with only a handful of votes to spare, Labour make it three in a row in West Park as Enid Hetherington ends the Progressive Association’s long tenure there, Labour pick up Westoe at the expense of Allen Branley, and further legal challenges ensue after Ahmed Khan narrowly loses the decision against Labour’s John Anglin in the Beacon and Bents ward of South Shields.
Labour’s only other failure on a remarkable night was in Cleadon Village and East Boldon, where Conservative Councillor Jeff Milburn retained his seat with a much reduced majority.
Following further shop closures in King Street, South Shields, South Tyneside Council announced an updated plan for a shoppers car parking scheme which gave two hours of free town centre parking, charges would only be applied after two hours and could be refunded if shoppers were spending more than £5 with local “partner” businesses. In a further sign of Labour’s pragmatic approach to working with the coalition government council Leader Iain Malcolm announced his intention of shaving an additional £45m from South Tyneside’s spending as he intended to announce a first ever reduction in council taxes to help local people rebuild their economy by putting money back into their own pockets to spend.
On the sporting scene, South Shields Mariners are in disarray after the sale of Filtrona Park , a late season slide in form saw them narrowly avoid relegation and their future is now in serious doubt as new houses are about to be built on their former ground. Until they find a new home their existence in the Northern League cannot be guaranteed.
In the Premier League Mike Ashley showed no inclination to spend on Newcastle United during the January window, as once again he discussed the possibility of selling the club at the end of the season. The Magpies strong start to the campaign was cancelled out when striker Demba Ba suffered a serious injury, this coupled with the sales of Tiote and Krul meant that Pardew’s men had a late season loss of form which saw them end the campaign in 15th. place.
Rivals Sunderland were boosted by the surprise arrival of a top name striker and a full back which pleased the red and white half of South Shields. Meanwhile Ryan Noble’s emergence as a Premier League threat helped Martin O’Neill cement his status as a “legend” as the team went on a strong run towards the end of the season finishing above the Magpies in 9th. place. Owner Ellis Short announced that further funds would be made available to the Irishman for the summer transfer window, once again Sunderland are considering the possibility of extending the capacity at The Stadium of Light.
Little Mix chased the dream.
Exactly two years ago I used this video to illustrate this particular post where I said
“I think that South Shields girl Jade Thirlwall should think seriously about having another go at the X Factor, she could well emulate Joe McElderry next year.”
OK, so it took a little longer, but after initial rejection she was thrown in, along with fellow Shields girl Perrie Edwards, Leanne Pinnock amd Jesy Nelson to a girl group later to be known as Little Mix. It has been a hard road for the four girls as they went through the pressures of public votes in ITV’s flagship reality show but yesterday evening they won the coveted X Factor prize and that important contract with Simon Cowell’s music company. Another feather in the cap for South Shields and a great advert for the young talent that we have in South Tyneside. It takes some “bottle” to be knocked down, get up, dust yourself down, and come back fighting, but as many girls from Laygate or Simonside can attest this determination to succeed is a requisite in the tough streets of Tyneside.
To be fair we knew that Thirwall had it in her as a former winner at the Pride of South Tyneside Awards, but how many of us saw Perrie Edwards coming through? I wonder too, how much of an influence “Mark” was in Jade’s success?
Winning the X Factor is no guarantee of fame and fortune, and the winners see little of Cowell’s £1m contract, it is rumoured that they are advanced as little as £150000, and must spend the rest promoting an album on behalf of Cowell, however some are now reckoning that the four girls could be in for a huge windfall as advertisers, and promoters see the marketing opportunities presented by a bunch of young vibrant girls put together as much for their looks as well as their singing prowess. They have already featured in a Marks and Spencer’s advertisement, and will no doubt be signed up to promote hair and beauty products at home and in the UK as Cowell looks to exploit a gap in the market. Little Mix could be on the verge of reaping rewards running up to £10m. Don’t begrudge them this success, they will see very little of their home towns or families over the next 12 months, they will need bags of strength and enthusiasm to cope with Cowell’s demands, there will be travel and sleep deprivation, their lives will no longer be under their own self control – they now belong to Simon Cowell.
What does it mean for this region though?
We become seen as a nursery for talent, others may become inspired to emulate this level of success, we get a little more national press attention, and sometimes it may not be for the best of reasons as personal lives become laid bare to reporters, our youngsters may become seen in a more positive light too. Most importantly, we may see young entrepreneurs in business and commerce become more emboldened and self confident as they follow their own dreams. They may be inspired by the competitive attitudes of girls like Little Mix, and we may find that other more diverse young talents on Tyneside succeed in building bigger contracts that lead to some growth in our regional economy, the experience of the hard knocks that eventually lead to a winning position might hopefully rub off on many of Tyneside’s teenagers, upon whom our future relies.
Damian Rice’s Cannonball, great song, would not have been my choice for the winner’s single.
Vorsprung durch Technik
In a week which has been full of further austerity packages both in the UK and Europe, yes folks the coalition government is failing to meet its own financial targets and must do more of what their EU masters demand, it is good to see that South Tyneside Council is about to help out the employment situation of the Germanic peoples by investing in a new car for the borough’s mayor. The old Volvo, on a “55 plate” with less than a reported 20000 miles on the clock has been sacked, rather like “agent Bruce” and replaced in a jiffy by a model already regarded as experienced, with a good track record, and up for the job. Just a shame that we couldn’t have gone for a luxury Nissan model and support the jobs of hundreds of South Tyneside men and women, it need not have been one of these perhaps one of the models made in Washington might have sufficed – better than exporting jobs abroad again.
Inside sources tell me that the new black Audi A8 is currently being prepared for use at Middlefields in South Shields, receiving the custom livery and coat of arms that a mayoral car must have whilst the poor old Volvo will be sent for auction “somewhere”. By my reckoning someone will be getting a real bargain as the leasing company releases this asset onto the market.
Of course the cars are leased – yes……surely?
Vorsprung durch Technik for Geordies.