Could it happen again?

Laurel

Image © Ell Brown

On 30 March 2001 the BBC carried an article discussing the Department of Trade report into the Robert Maxwell affair. This involved Maxwell taking over £400m from his company’s pension fund, leaving 32,000 pensioners fearing for their future financial security.  The BBC asked ‘Could it happen again?

11 years later on 4 March 2012 the Sunday Times Business section leads with the headline ‘Osborne grabs £28bn windfall.’ This is the plan by the Conservative government to take over the Post Office pension fund. According to the Sunday Times, the pension fund has a net deficit under current accounting rules (as applied in the private sector) of £4.6bn, but for government accounting purposes (which it attributes to ‘quirks’) the liabilities of some £32.6bn will not appear as liabilities on the government’s books. The assets, however, of some £28bn, will be regarded as a ‘surplus’ and will be liquidated ‘creating a new pool of cash for the chancellor to play with.’

Apparently some conservatives would like the money to be used to invest in infrastructure projects, such as roads power stations and railways. This is despite the fact that pension funds typically do not invest in such schemes until they are completed, because of the high risks involved.

Read more of this post

The issues that shall really determine Scottish independence

Scott Hill

Image © Saul Gordillo

So, we now know the all-important question: Do you agree that Scotland should be an independent country? Yesterday, the Scottish government published its consultation paper[1] on an independence referendum to be staged in the autumn of 2014. Within the document, which outlined a path similar to what many would have predicted, it was stated that 16 and 17 year-olds should gain the right to vote, those voting should be residents of Scotland and, crucially, the possibility of a multi-option ballot was left open, meaning that Scots may get the opportunity to vote for full-fiscal autonomy; an option they seem to prefer[2].

Whilst the document remained largely controversy-free, a few troubling queries could be forthcoming. It seems odd that the majority of sportsmen representing Scotland in rugby and football, for example, will not be permitted to vote on the future of their country. However, this is an awkward issue for which there appears to be no easy way round. Either way, somebody out there with a strong affiliation for Scotland shall miss out on the vote. Perhaps by making eligible all those who can prove that they were born in Scotland would be the best solution. Others will point to the fact, in relation to 16 and 17 year-olds voting, that individuals not permitted by law to enjoy an alcoholic beverage or puff on a cigarette have no plausible right to vote. I, however, am quite relaxed about the proposition put forward by the SNP. Read more of this post

Tzedakah and the British Economy

Burdzeyeview

Image © HM Treasury

Could George Osborne have something up his sleeve, a rabbit to pull from the hat, a magic fiscal firework that causes us all to ooh and ah with excitement?

The Chancellor gives his autumn statement today and we are wallowing our way through economic gloom and doom.  Austerity is really starting to bite, or maybe folk just feel it more in the approach to Christmas, mentally calculating how much they can afford to spend and continually coming up short.

The Euro crisis still threatens to engulf us all with markets see-sawing every week;  the UK economy has ground to a standstill;  youth and long term unemployment are at their worst levels in a generation;  and the only things rocketing are fuel and food prices. Read more of this post

Follow

Get every new post delivered to your Inbox.

Join 1,300 other followers