Finance Archives - Page 6 of 13

ACC 2013 Taxes: A Good Year For Usual Suspects

Oct 032014

Previous administrations sold off property at a fraction of real value (funny, no one can find the details of the police investigation that was meant to happen – watch this space). They also wrote off £11 million in unpaid debts. Here is a snapshot of where you tax money was deployed last year. The trend of arms’ length bodies, quangos, quasi-charities, consultants and private companies hiving tax money off continues apace. Here is a small snapshot of where some of your money has gone. By Suzanne Kelly

Congratulations to Sir Ian Wood, lifetime achievement winner of a Northern Star business award. How wonderful.
A ceremony was held this past week; dignitaries ate dinners, media bodies were hired (Fiona Armstrong, compere) to appear and/or film this event, run by the Chamber of Commerce.

As self-congratulatory beanfeasts are concerned, this is not without precedent. But perhaps you should realise that you are helping to fund all these events at least in part, while being told there is little in the way of funds to keep schools open, to help the homeless, to provide round-the-clock care to those who need it and so forth.

Figures for this year’s awards are not made public, nor are they ever likely to be completely transparent, as there are now so many entities taking a slice of the pie.

Last year charity Station House Media Unit received some £2,300 for filming this event. The Chamber of Commerce has received a huge sum of money from us this year. During the Union Terrace Gardens referendum, it sent invoices between ACSEF unnamed contractors and the city council footed the bill.

When asked to name some of these suppliers – for instance whoever it was who received £150 (give or take) for a photo commissioned to show that UTG was ‘inaccessible’ (there is a huge sloping entrance by His Majesty’s Theatre), the Chamber wrote to say it was a private entity, and as such was not required to explain a thing.

A long, long time ago if you paid your tax, the government would directly use your money to buy goods services and employ people. Alas, this led to huge problems – such as your being able to clearly trace how much of your money was spent and where it went.

This is the age of the devolved responsibility entity, of quangos, special purpose vehicles and other entities which serve to obscure where your money goes and make salaries paid to those who act in these middle-man bodies invisible.

Tax money here in Aberdeen flows rather steadily to bodies such as Aberdeen Inspired, ACSEF, Aberdeen Chamber of Commerce, Station House Media Unit, and a host of consultants large and small.

While some of these bodies undoubtedly do good work – did they really provide value for money in 2013? And those that are social enterprises – does that put them above scrutiny? Does doing charitable work or providing training mean that any transparency as to how taxpayer money is spent should go out the window?

Here is a brief outline of how Aberdeen taxpayer’s money was employed in 2013 in a few situations.

A Tree For Every Citizen.

With great pride, Councillor Aileen Malone explained that this scheme had to be done in the most cost-effective way: it was only fair to the taxpayers seemed to be her approach. She was the convener of the Housing & Environment Committee, and pushed this scheme through claiming shooting the existing deer on Tullos was the only affordable thing to do for this great scheme (see Aberdeen Voice issues past).

In 2011 the taxpayer coughed up some £40,000 pounds to kill deer, raise fences and spray pesticide on the trees.

Here is a look at the invoices paid in 2013 for keeping the Tree for Every Citizen scheme going (note – this may not be a full list of costs):

Company/Consultant	Invoice date	Brief Description	Amount inc. VAT
Bryan Massie	19/12/13	TFEC – Site management, weeding	2493.49
Bryan Massie	(invoice 629)	TFEC – Tullos maintenance	9,943.98
Bryan Massie	17/5/13	TFEC – herbicides – St Fitticks, Westfield, Seaton, Balgownie	4303.80
Bryan Massie	17/5/13	TFEC – Tullos ‘beating up’ and tree shelter	16,682.04
Bryan Massie	12/2/13	TFEC – Tullos	28,968.00
		Sub Total	62,391.31
C J Piper / Chris Piper (noted for report claiming only a ‘vociferous minority’ objected to the TFEC scheme, said report not mentioning the tens of thousands of pounds he would be paid)	1/10/13	Preparation of strategy; time at £375 per day	12,000
C J Piper / Chris Piper	26/9/13	Scoping, survey, spatial plans	6,000
C J Piper / Chris Piper	26/7/13	Professional fees £950; travel 675	6,000
		Sub Total	24,000
Minimum cost to taxpayer 2013 for Tree For Every Citizen Scheme			86,391.31

Combined with previous expenditures of £83,598 known to have been spent on the scheme, perhaps we could have let the meadow and the deer stay. (note: a petition asking for full disclosure of the costs, and a moratorium on shooting more deer until population figures are known at the least is awaiting approval from the city for its wording; it will be launched soon. This petition will also ask for a ‘comfort letter’ from the SNH/Forestry Commission: the city had to pay £43,800 back for the failure of Phase 1).

So £83,598 added to the above £86,391 makes £169,989. How the procurement exercise for our experts was carried out likewise remains a mystery.

Fence-Sitting.

But if Aileen Malone insisted fences were too expensive back in the day she had the deer shot as being an economical solution (in logic defying animal welfare charities such as the Scottish SPCA and Animal Concern) – she did have a point: fencing is rather expensive. Here is a summary of invoices received from Alpha Fencing in 2013:

Alpha Fencing.

Invoice date	Brief Description	Amount inc. VAT
26/314 (included in 2013 accounts)	Airyhall	20,333
26/3/14		8,205
30/8/13	Duthie	4,671
22/8/13	Glashieburn	2,185
4/2/13		8,939
12/8/13		7,875
	Total	52,208

Perhaps there are other fencing contractors; Alpha catches the eye as they were involved in work on Tullos. If other fencing contractors likewise earned money from the taxpayer last year, perhaps we will be told what companies are involved.

Big Loser.

One area in which money was saved concerned the loss of the Big Partnership contract. Despite having operatives charging between £40 and £65 per hour, the invoices were not huge, and stopped c. May 2013.

Stewart Milne.

Stewart Milne’s companies have not done too badly out of the Aberdonian taxpayer. There was the small matter of land in Westhill sold to one of the Milne companies for a pittance, with the understanding that any profit would be shared with the city. That never happened and the Milne entity took the city to the highest courts in the country before losing (cost of this legal action unknown).

At the same time, the Milne machine won work worth nearly £10 million. In 2013 invoices submitted for contracts with Milne were as follows:

Brief Description	Amount
Hayton Road	30,044
Bryon Park	47,130
Rorie Hall	28,097
Total	105,271

Aberdeen Inspired

Perhaps someone from Aberdeen Inspired will be inspired to share with the business rate payers – i.e. the consumers – precisely what it does with all of the money it is given from the council. We’ve had bunting; the city has stumped up extra money for those trash compactors dotting the street. (nb – is there no waste segregation in these bins and if not, are we not just adding to landfill by using them?).

Inspired has also decided to use mobile phone signals to trace our footfall in the area; tracking how much time is spent inside a shop for instance. Data protection lobbyists are very concerned about the technology involved; Inspired insists it is completely anonymous.

At any rate, what is kept secret is how much anyone connected with Inspired is paid, how their procurement process works, and who is making the decisions. In case you think there is nothing more to Inspired than small change for craft stalls and banners, here is what they received from ACC last year:

Invoice date	Brief Description	Amount inc. VAT
2/10/13	Bid Levy Collection, both outstanding and collection, plus VAT	148,326.32
2/7/13		715,292.94
14/2/14 (in 2013 accounts)		30,038.73
12/8/13		28,235.52
29/3/13		21,695.80
2/10/13		9,550.00
	Subtotal re Bid Levy	953,139.31
4/12/13	Trash bins	18,489.60
25/10/13	Trash bins	18,489.60
(date unclear)	Ice rink	12,000.00
(date unclear)	‘wayfinding project’	31,830.60
	Subtotal non Bid Levy	80,809.8
Total invoiced by Bid/Inspired to ACC 2013		1,033,949.11

It would be interesting to see where all of this money has been used, what the overheads including salary are, as the tattered bunting blows in the breeze. No doubt some good work has been done – but what is the cost, what has been done with this consumer-generated, taxpayer-supplied million pounds: and has it resulted in increased sales for those who voted the scheme into existence?

SHMU

Station House Media Unit engages in training, and helping disadvantaged area residents interested in the media; it publishes brochures for and/or with the council. Last year SHMU was criticised when it used photographs created by people who had not given advance permission and who had not been offered payment for their work – this would be a standard business practice for any publisher.

SHMU reacted badly to exposure of this situation; it may well be a charitable institution doing good work – but that does not put it above scrutiny.

Considering that so much of its funding comes from the public, it would be interesting to see what salaries are paid, what the overheads are, how procurement is done, etc, etc. – but again, this is a body that while funded largely by the public is not accountable to the public under Freedom of Information legislation.

Here is a selection of some of the funds SHMU received last year: the Council had 43 pages of documentation pertaining to funds sought / funds released to SHMU:

Invoice date	Brief Description	Amount
29/11/13	Pertains to community support fund grant offer;	1,624
31/5/13	Filming Start Awards (Chamber of Commerce award ceremony to business; Sir Ian Wood received a lifetime award in 2014)	2,300
	Quarterly funding of 13,750/quarter	55,000
Winter 2013; Spring 2014	7 community magazines	11,929
4/12/13	Additional cost for 7 magazines	1,624
(date unclear)	Training	8,500
7/12/13	Connecting communities through community media	16,750
Sub total for this selection of SHMU invoices		97,727

There were a number of youth employment-related invoices as well.

But far and away the biggest earners of the invoices examined were the Chamber of Commerce and PricewaterhouseCoopers.

Secret Chamber.

The Aberdeen and Grampian Chamber of Commerce acted as a de facto go-between during the Union Terrace Gardens referendum; ACSEF would commission work across a wide spectrum of services and price brackets. This would be invoiced to the City Council via the Chamber of Commerce.

Invoices of this type seen by Aberdeen Voice did not disclose who or what organisation performed the work undertaken. What procurement procedures were followed and if any ACSEF members directly benefitted from these invoices remains unclear at present: there seems to be no obligation ACSEF or the Chamber of Commerce to say how taxpayer money was spent.

Thirty one documents were presented by the City Council’s finance office covering invoices and funds paid to the Chamber in 2013. Some were for miniscule amounts such as breakfasts. Some were just a bit larger:

Invoice date	Brief Description	Amount
29/11/13	Sponsorship of transport to Rio	£542.48
30/4/13		2112.00
28/6/13		2112.00
13/11/13		324.00
29/11/13		542.48
18/6/13	Northern Star	7,800.00
1/10/13	Membership	2,838.00
6/8/13	Offshore Europe Breakfast	588.00
28/2/13	Research	4,560.00
31/12/13	Research	4,560.00
28/2/13		1080.00
31/12/13		540.00
29/11/13		2,160.00
29/11/13		7,020.00
20/2/13		1,140.00
Total for approx. half of the 2013 invoices		£37,918.96

Beancounters Beanfeast.

The accounting firms have done quite well this year. KPMG made a tidy £10,740; this was positively modest compared to PricewaterhouseCoopers.

PwC may be remembered for its projections during the UTG referendum: its projections for the web’s construction and associated prosperity were, shall we say, enthusiastic. As per an earlier article on the subject:

“PricewaterhouseCoopers have come up with some grandiose projections including the creation of some 6,500 permanent jobs and £122 million flowing into Aberdeen every year until c. 2023: all because of the granite web. PricewaterhouseCoopers were first paid £41,000 and change for TIF-related work in March 2010. Other invoices followed, and so far I have been shown by Scottish Enterprise £71,000 worth of PwC invoices.”

The firm still enjoys the generosity of the Aberdonian taxpayer. Its consultants received hundreds of pounds per day each; its invoices covered a spectrum of services from the (scandal-hit) crematorium to fraud work. Here is a list of their 2013 invoices to ACC in round figures:

Invoice date	Brief Description	Amount
15/7/13	Pinewood	1,800
3/2		170,949
20/3/13	HMRC	1800
15/7/13		9,600
15/10/13		5,200
9/7/13		2,400
3/12/13		33,270
17/7/13		30,229
16/9/13	(included c £19K for crematorium)	78,142
15/4/13		165,889
18/12/13		59,281
21/11/13		86,540
8/11/13		13,678
1/5/13		2,940
29/5/13		11,206
6/8/13	Letter to HMRC	900
Total to PricewaterhouseCoopers 2013		673,824

Summing Up.

The city has joined the ranks of other municipalities that have ‘outsourced’ functions in order to save money. This growing trend does not always stand up to scrutiny. Consultants are needed to run services which, if were previously not-for-profit when in the public sector, need to be profitable for those who have chosen to run them.

In days gone by, the reason people paid tax was that there were some functions – education, good health care, etc. – which ideally should be free of the need to turn a profit. Our taxes were meant to benefit the people and the causes that needed help.

As more and more outsourcing is done, transparency moves away. The city’s accounts this year allude to an incident of fraud. Is it possible that the more people and entities that grow around managing services, the higher the chance there is of fraud? Does the increasing lack of transparency lend itself to those who would commit fraud?

Can a private company such as PricewaterhouseCoopers that stands to make money if (for instance) a granite web is built be entirely trusted to be 100% impartial on weighing up the practicalities of a project which would benefit its profit line?

Should the city weigh more carefully how its arm’s length bodies engage in procurement? From the 2013 figures, a case could be made that the city needs to look into its financial arrangements more carefully (and that’s before we look at the costs of outsourced health care).

Audit Scotland had some strong recommendations to the council several years back. If lessons have been learnt, let’s hope we get a clearer picture in the future of where our money is going.

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[Aberdeen Voice accepts and welcomes contributions from all sides/angles pertaining to any issue. Views and opinions expressed in any article are entirely those of the writer/contributor, and inclusion in our publication does not constitute support or endorsement of these by Aberdeen Voice as an organisation or any of its team members.]

Pensions Safe With Yes

Aberdeenshire, Opinion 7 Responses »

Sep 122014

By Banff & Buchan MP Dr Eilidh Whiteford.

It was back to London for me this week as the long Westminster recess came to an end. I was pleased to find it’s still warm and sunny there, even if Summer seems to have abandoned us here in the North-east. As well as parliament catching up on events that have developed over the break, we also passed the second reading of a pensions bill that will give those with occupational pensions more flexibility when they retire.

I’ve been talking a lot about pensions in recent weeks. As I’ve been out chapping doors ahead of the Referendum, I’ve been reassuring pensioners that their State Pensions will be paid on time and in full in the event of a Yes vote, administered from offices in Dundee and Motherwell, just as they are at the moment.

I’ve been reminding them that their entitlement is based on their contributions record – not where they choose to live. Many thousands of pensioners go off to live in Spain and France nowadays, but all receive their pensions, because they worked for it, and I welcome the confirmation from the UK Pensions Minister that state pensions are secure regardless of the outcome of the Referendum.

But in Scotland we can do better. We spend a lower proportion of our GDP on pensions than the rest of the UK, and life expectancy lags stubbornly behind the UK average. A Scottish pensioner retiring in 2016 will, on average, receive £10,000 less in pension over their lifetime than pensioners elsewhere in the UK.

That’s one reason why we need to tailor pensions to Scotland’s circumstances and look again at whether we really need to raise the pension age beyond 67, as the UK plans to do. Control of our economy would also give us the levers to address the longer term demographic challenges faced by all Western countries with low birthrates and aging populations.

Scotland’s relative economic strength means that we are better placed to ensure that our citizens enjoy a dignified retirement with a secure income in old age.

We can afford to do things differently, and a Yes vote in September will allow us to do just that.

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My Reasons For Voting Yes.

Articles, Opinion 8 Responses »

Sep 122014

By Fin Hall – Writer Photographer, Realist.

I am rapidly approaching my 62nd birthday; in fact by the time that I cast my vote on the 18th of September, that milestone will have passed.
My views on independence has never changed since I first was eligible to put a cross on my first voting paper. It has always been an easy choice to be a yes voter.

When I was 18 I voluntarily joined the army, not any of the Scottish regiments, that would involve too much, hard, physical work, but The Royal Signals, as a radio operator.

When I was filling out my application form, two things rankled me. One was the fact that it was not permissible to put the word ‘atheist’ in the box for my religion. The other being, that I wasn’t allowed to enter ‘Scottish’ in the section reserved for nationality.

I have never been anti-English, nor, on the other hand, have I ever been a Braveheart style nationalist. Both of these options are narrow minded, and potentially dangerous characteristics.

Not long after enlisting, there was an election of some sorts in Aberdeen. I remember getting my dad to vote by proxy for me, something I don’t believe one can do now. This is where I am not sure of my facts, but spurred on by the application form, I seem to recall getting him to vote for the SNP candidate. I am not sure who that would have been, but it was the start of the road to where I am now.

In the seventies when Jim Callaghan’s Labour Government ( remember them? Real labour) cheated us out of our right to devolution, by stating that we needed to get at least 46% of the population to cast their vote for the victory to be assured, I was devastated that our proud people, couldn’t drag themselves along to the polling stations in the appropriate numbers.

Fast forward to Tony Blair and his New Labour posse riding into town and delivering the promised, no strings attached, devolution referendum, the result of which is the position we find ourselves in just now. Getting the chance to decide our own future, hopefully the chance to stand on our own two, or should I say five million feet in a few weeks.

There are many reasons why I cannot for the life of me understand why anyone, I mean anyone, could even consider not voting to be 100% in complete control of their own lives, whilst still being in a close relationship with their partner.

Scotland is not, and never will be a third world country. We have no need to have to go cap in hand to Westminster, no need for charitable aid donations.

Technology has advanced in leaps and bounds since then, and will develop even further in the future

We have vast oil resources, and despite the fact that Alistair Darling and David Cameron call it ‘volatile’ and that it will run out eventually, I always argue the fact that they have had oil in the a Gulf of Mexico area since 19th century and in the Middle East since somewhere in the middle of the 29th century.

I realise it is different geological circumstances, but it shows no sign of running out there.

I have been hearing this in Aberdeen since it first started coming ashore in the seventies.

Technology has advanced in leaps and bounds since then, and will develop even further in the future, meaning it will be possible to get even more out. Never mind the Clair Ridge recent discovery. So why is it volatile here and not in other parts of the world? How come our oil-sharing neighbours, Norway, aren’t tearing their hair out worrying about the successful country they are?

I have friends that continuously spout out about supporting local businesses as opposed to putting money into the pockets of the multi-nationals, and then support the Better Together side of things, not getting the irony in what they are doing and saying.

By forever being beholden to a power other than our own is like living at home as an adult, in a great, well paying job, handing over all your salary to your mum, getting some pocket money back, and still having to do your own laundry and make your own tea.

In my day job, or should I say my afternoon and evening job, I am a self employed taxi driver. I have been for 37 years, and all but one of non Scottish people I have had in my cab, and discussed the referendum, have stated that they would have voted yes, or will vote yes, for those eligible.

None of them can understand why any one would vote no. They just don’t get it. In fact one Indian guy stated that independence is in their blood from birth.

The one who said she was voting no was a young English born girl of Romanian descent. Her reason was that when Romania became a free country, it didn’t fare well to start with.

this isn’t set up to be a slight on our southern neighbours, but more showing our standing in the world

I asked her if she had the chance back then, would she have voted to remain under the control, effectively of USSR? She thought I was asking a stupid, irrelevant question. Totally failing to get the point, that, because of the fall of the aforesaid communist empire, she wouldn’t necessarily be free and here in Scotland just now.

I have travelled to well over 30 different countries, and generally what happens is, that locals ask if you are English; when you point out to them that you are Scottish, a smile as wide as the Firth of Forth come across their countenance.

This happened to us in August in Northern a France, when in a pizza restaurant ( don’t ask, it was all that was open) when the owner came over and introduced himself to us, and asked that very question. When we told him we were Scottish, he apologised, and got even more friendlier.

Now this isn’t set up to be a slight on our southern neighbours, but more showing our standing in the world, despite the Better Together campaigners saying we are only good because we are conjoined to England via the Westminster umbilical cord. And despite the Better Together rampagers spreading fear and loathing about currency, our pound, pensions, (safe) health service. ( safe unless Westminster cuts funding, which they could do) and other spurious tittle tattle,every day more people are turning our way.

We are a rich and diverse country fill of artists, inventors, discoverers etc. By saying that, I am not implying that we are unique in such a thing, there are many countries the same. The only difference is that they are independent and stand and fall on their own choice, unlike us, who have the burden of paying the price of Westminster’s failings and bullying.

I am voting yes because I come from a proud country, and would like to leave the future totally in the hands of our own decisions, so my grand children and my soon to be born great grand daughter, and for generations to come, can be proud that we, Scotland the Brave, made the right decision, for the right reasons, and not immediately thinking of the penny in our pocket at thus precise moment, and not because we were fearful of being ejected from the EU the rest of the UK may vote to stay in anyway, and not because we hate anyone, but because we are a nation ready for independence and have no wish to still live with our parents, paying our board and living off handouts .

We are not a third world country, but a globally successful one.

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Plan B – Limit Scottish Currency Creation To Central Bank

Articles, Opinion 2 Responses »

Aug 192014

With thanks to Aberdeen Group of Positive Money Supporters.

Positive Money’s ‘A Scottish Currency? 5 Lessons from the Design Flaws in Sterling’ highlights the necessity of limiting the creation of a Scottish currency to a Scottish Central Bank.

The report is helpful in pointing out some of the pitfalls of a Sterling-type currency,
namely:

1. The amount of money in the economy currently depends on the confidence of bankers.

A Bank of England Bulletin recently explained:

‘Broad money is made up of bank deposits — which are essentially IOUs from commercial banks to households and companies — and currency — mostly IOUs from the central bank. Of the two types of broad money, bank deposits make up the vast majority — 97% of the amount currently in circulation. And in the modern economy, those bank deposits are mostly created by commercial banks themselves.

‘Commercial banks are the creators of deposit money…rather than banks lending out deposits that are placed with them – the act of lending creates deposits – the reverse of the sequence typically described in textbooks.’ (p15)

Every new bank loan creates new money. Since some economics/finance textbooks do not portray money creation in reality, some people may have (through no fault of their own) incorrect assumptions on this matter.

2. Any attempt to reduce household debt can lead to recession

Since banks create new money when lending, money is destroyed upon repayment. This can shrink the amount of money available in the wider economy.

3. The economy can only be stimulated through encouraging further indebtedness

Most broad money is created as a debt when people borrow, so the fastest way to create an economic recovery is to encourage people to keep borrowing. The only real alternative is something like Quantitative Easing (and even then – please target the real economy!)

4. Proceeds of money creation is captured by the banking sector rather than taxpayers

The Bank of England sells the notes and coins it creates at face value. Between 2000 and 2009, this profit on newly-created money (‘seigniorage’) added up to £18 billion . These profits are passed on to the Treasury.

Between 2000-2007 banks increased the amount of money in the UK by £1 trillion. However the law does not extend to cover seigniorage on this form of money. Banks gain interest from issuing those funds. The Treasury gains nothing.

5. Banks cannot be allowed to fail – if they did the payments system would collapse.

Under one roof you have one bank performing three functions. Firstly, a payments system to receive and transfer money (through your current account). Secondly, providing investment and savings vehicles for the longer term. Thirdly, access to loans and mortgages.

The bank deposit money or electronic money that we use today is simply the accounting liabilities of banks, meaning that if a large bank fails, our money is frozen and can no longer be used to make payments. Hence the need for a government scheme to guarantee deposits in case the bank fails.

Potential Solutions

Scotland could design a better currency and banking system. For instance, at the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as ‘The Chicago Plan.’ With this –

1. Deposits would be backed 100% by money at the central bank.

2. Banks could not finance loans by simply creating new money.

3. The payments systems would be separated from the savings and loans functions.

4. Under appropriate controls government would issue money directly at zero interest.

Irving Fisher (1936) claimed four major advantages –

1. It would eliminate bank runs

2. Better control of credit cycles

3. A dramatic reduction in private debt

4. A dramatic reduction in net government debt

In 2012 this was tested by the IMF’s Michael Kumhof and Jaromir Benes who modelled the US economy in ‘The Chicago Plan Revisited’. (It has answers to common questions too.) They found fully capturing seigniorage (the proceeds from creating money) would consistently bring in 3.5% of GDP every year (p84). In the UK context that amount could half the deficit. (2013-14 borrowing is 6.6% of GDP)

They concluded (p68):

‘Our analytical and simulation results fully validate Fisher’s claims….We find that the advantages of the Chicago Plan go even beyond those claimed by Fisher. One additional advantage is large steady state output gains…. Another advantage is the ability to drive steady state inflation to zero… This ability to generate and live with zero steady state inflation is an important result, because it answers the somewhat confused claim of opponents of an exclusive government monopoly on money issuance, namely that such a monetary system would be highly inflationary. There is nothing in our theoretical framework to support this claim.’

Kumhof commenting on it all said:

‘We can think of only one serious disadvantage, namely that the transition could be complicated and risky. But earlier thinkers, including Milton Friedman, did not share this concern, and the risks would have to be enormous to justify not giving the Chicago Plan very serious consideration.’

Implications for Scotland

With its own currency and central bank Scotland could create a system where –

1. Deposits would be backed 100% by public reserves.

The Chicago Plan leaves bank deposits completely unchanged; what changes is what deposits represent : indestructible public money rather than volatile destructible private money. Banks would borrow from the Treasury to obtain full coverage for all deposits. Rather than money being destroyed when repaid as at present, it accrues to the government as seigniorage.

2. Credit could not be financed by creation, ex nihilo (out of nothing), of bank deposits.

For money, it requires 100% backing of deposits by government-issued currency, combined with a strict money growth rule to control inflation. Today’s deposit creation out of nothing would be made illegal, the financing of new bank credit could only take place through banks retaining earnings or borrowing funds in the form of government-issued money.

The government is therefore fully in charge of controlling the broad money supply. The power to create and destroy money is taken away from banks, and returned to a democratic transparent and accountable process. And without banks’ rapidly changing attitudes towards credit risk (largely via asset bubbles) the amount of money in the economy would be more consistent reducing business cycle volatility.

3. The monetary and credit functions of banking would be separated.

The state is therefore fully in charge of controlling the broad money supply, but private financial institutions would remain in charge of determining the credit supply of real investments. Financial institutions concentrate on their strength, the extension of credit to investment projects that require monitoring and risk management expertise. Badly-run banks could be allowed to fail. Meanwhile the payments system of the economy would be fully secure with a 100% reserve.

4. The government would be allowed to issue money directly at zero interest

This allows more money to enter the economy without there also being more debt. Spent rather than lent. The central bank would decide on how much funds could be created which would then be passed on to the government. What it would be used for would depend on government policies.

Issuing money debt free rather than having to borrow it from banks at interest should help public finances and private debt levels. This could evidently contribute to reducing economy-wide financial fragility.

To conclude, Scotland (or any country for that matter) could have a brighter future with its money under the full control of its central bank alongside a better banking system.

Martin Wolf of the Financial Times has already suggested earlier this year to ‘Strip private banks of their power to create money’. The English and Welsh Greens have a very similar economic policy. There is currently a very small but growing cross party awareness amongst MPs of the monetary and banking issues discussed above.

Positive Money is a movement to democratise money and banking so that it works for society. This article was brought to you today by the Aberdeen Group of Positive Money Supporters.

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GTM Seeks Funds For New Visitor Reception Area

Aberdeenshire, Information No Responses »

Jul 312014

With thanks to Martyn Smith.

Grampian Transport Museum needs a helping hand. The award winning museum has followed an annually updated development programme for the past three decades in order to remain topical, relevant and popular. Recently it has been agreed that the whole visitor reception experience needs a radical rethink.

Like a good hotel GTM needs an area where visitors can arrive, take stock, get their bearings and be introduced to the experience to follow.

To answer this need a new reception extension has been designed that can accommodate an introduction to the seasonal exhibitions mounted at GTM and also the various activities possible at the museum. For example for the first time the museum’s work with schools, heritage skills and the GTM Young Engineers Club will be showcased.

Customer comfort will be upgraded to exceed expectations with a new superloo and coffee and magazine area in a light airy modern structure fronted by a portico carried on salvaged cast iron piers.

The GTM is a self financing educational charity. In revenue terms it is self sustaining at little or no cost to the public purse but when capital projects are to be funded outside help is needed. A fundraising campaign was launched at the museum on 26th June to raise the £320,000 needed to build the new facility. Last Friday, the museum passed the £100,000 mark; the six figure barrier is broken.

However if the museum is to build the facility this Winter as planned the total sum needs to be secured in the next eight weeks. Planning permission has been secured well in advance to ensure that this is possible.

To date funds have come from a number of supportive companies and individuals. The first to commit was BP who are supportive of the museum’s educational programmes.

The GTM is already a highly rated local facility but anyone wishing to help it to take a big step forwards should contact the Curator, Mike Ward on curator@gtm.org.uk or by ‘phoning 019755 62292. Mike will be happy to explain the proposals in detail and also the attractive reciprocations offered to supporters.

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Local MSP Highlights Choice Between Two Futures

Featured, Information, Opinion 13 Responses »

Apr 252014

With thanks to Gavin Mowat, Constituency Assistant to Christian Allard MSP.

North East MSP Christian Allard has taken the opportunity to highlight the choice between two futures that the people of Scotland will be presented with on the 18th of September.

Mr Allard said that the obscene Trident nuclear weapons would be removed from Scottish waters following a Yes vote in the independence referendum. The SNP MSP added that voting Yes in September will send the signal to the world that Scotland would rather develop its healthcare and education than spend £100 billion on renewing weapons of mass destruction.

The North East MSP said that a No vote in the referendum would send the wrong signal to the world and waste £1.5 billion per year on weapons that will never be used.

Mr Allard’s comments follow the recent SNP conference in Aberdeen where the party renewed its commitment to getting rid of Trident following a Yes vote in September.

Commenting, Christian Allard MSP said:

“The referendum is a choice between two futures.

“A Yes vote on September the 18th is a vote to remove nuclear weapons from Scotland once and for all.

“Westminster politicians want to renew a weapons system that can destroy the world. The Scottish Government would rather build a system of childcare that will be the envy of the world.

“Voters can guarantee their taxes will be spent on building a better society instead of building obscene weapons by voting Yes in September.”

Chair of Aberdeen and District Campaign for Nuclear Disarmament Jonathan Russell added:

“Scotland could set an example to the world by diversifying its skilled workforce away from Trident and other aggressive technology towards developing our own alternative energy industry. This in turn would build an economy which would bring in finance to allow our health service, child care and other welfare spending to flourish.

“We need to be getting away from the UK model of disastrous foreign interventions, cutting welfare to the bone, developing nuclear power and fracking and holding onto our imperial power by threatening others through keeping Trident.”

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Welcome For Plans To Revitalise Historic Town House

Aberdeenshire, Featured, News 2 Responses »

Apr 182014

With thanks to Martin Ford.

Kintore’s Category-A-listed historic town house could be set for a new lease of life thanks to an initiative to consider new uses for the building.

Kintore Town House dates from 1747 and is sited in the heart of Kintore. The building is owned by Aberdeenshire Council and a small number of Council staff are based there.

Said East Garioch councillor Martin Ford:

“Kintore Town House is a truly superb building, a really, really fine piece of architecture, and the natural centrepiece of the town. But in recent years it has been little used. Most residents of Kintore won’t have entered the building from one year to the next, and many of those who moved to the town in the last decade have probably never been in it at all.

“So Kintore Town House is an under-used asset. It defines the town centre, but it is not itself a centre of community activity. That needs to change.”

Aberdeenshire Council recently agreed to spend nearly £100,000 from its Capital Plan on external repair work to Kintore Town House.

A detailed brief for the external repair work is now being developed in consultation with Historic Scotland.

Aberdeenshire Council officers attended the April meeting of Kintore and District Community Council on Tuesday (15 April) to update the Community Council and ask for its involvement in a group to consider possible new uses for Kintore Town House. The Area Project Officer based in the Garioch Area Office at Gordon House has been tasked with co-ordinating work on finding possible future uses for Kintore Town House.

Cllr Martin Ford said:

“Kintore Town House needs to become busy again, to be a place where residents go – not just a building that is admired from the outside. Getting at least part of the building back into regular public use would be good for the building and good for the community.

“Finding a suitable new use will not be easy. It’s a project that will take time. I’m delighted a group is being formed to take this forward.

“There is no doubt that the building is greatly valued by the community, but it could also be a focus for community activity and identity as the town’s population continues to grow. I very much support the idea of finding ways of bringing this iconic building back into regular public use.”

For more information about the building see:

http://canmore.rcahms.gov.uk/kintore+the+square+town+house/
http://data.historic-scotland.gov.uk/Kintoretownhouse

£88,742 plus fees (total £97,616). See Item 19, page 10, at the Policy and Resources Committee on 3 April, here: https://www.aberdeenshire.gov.uk/committees/PlannedMaintenance

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Valerie Watts: So Long, And Thanks For … Errr … ?

Aberdeen City, Featured, Opinion 5 Responses »

Mar 312014

Valerie Watts served as Aberdeen City Chief Executive on a six figure salary from March 2011 until mid-March 2014. She scrapped her job as Derry Chief Executive and came to Aberdeen to give us the benefit of her experience. What benefits exactly have we reaped from the experience of Valerie’s tenure? ‘Watt’ should not be forgot? By Suzanne Kelly.

Backdrop

Valerie Watts’ stewardship as Aberdeen’s Chief Executive of Aberdeen City Council could and should have been a huge triumph by default.

Thousands marched against cuts imposed by the LibDem/SNP alliance in 2008.

The reigning LibDem/SNP coalition not only imposed cuts – they then turned around with some serious audacity to march along with thousands of those whose services they had cut.

Service slasher and budget protest marcher Kate Dean said at the time:

“I will be marching under the banner calling for a fair deal for Aberdeen. I can understand why people need to protest against these cuts but we also need to protest against the reason why we have had to make the cuts which in my opinion is mostly to do with the distribution formula.

“If we had the same funding as Glasgow we would have something like £60m a year more. We have the lowest funding settlement per head of population of any council in Scotland.”
http://www.heraldscotland.com/councillors-to-join-protest-over-service-cuts-1.845949 (Note – when Labour today use this argument in the council, they are derided. It is almost as if politics overrode logic).

LibDem Kate Dean imposed cuts while the city lost millions and gave land away for a song. Then Dean marched alongside people protesting her cuts. LibDem Aileen Malone, an elected councillor, later participated in a protest against the council she was part of (over the failure to build a structure in Union Terrace Gardens). Perhaps this form of protesting against yourself is a LibDem thing.

Some £11 million was written off under Dean as bad debt in one year; a property sale scandal came under her as well. Choices Day Care Centre was controversially closed. Could the then administration have found £60 million to benefit people in need? Not if it also wanted a shiny new office building.

Guess which need won the day. Sue Bruce apparently had enough of the Chief Executive post and scarpered.

Prologue

Watt’s immediate predecessor Sue Bruce moved to Edinburgh by January 2011; Bruce also received a six figure salary. Before her we had the spectacle of Chief Executive Douglas Paterson retiring due to ill heath in June 2008, (coincidentally concurrent with the Audit Scotland investigation into the property sales) days after announcing that he would not resign.

For further background on the property sales including how Stewart Milne was virtually handed land in Kingswells, see past issues of Aberdeen Voice.

Kate Dean and SNP coalition councillor Kevin Stewart tried to sweeten Paterson’s leaving package for reasons only they would understand, but sadly the pair were unsuccessful, as this extra money proved too unseemly even for Paterson to swallow. http://www.dailyrecord.co.uk/news/scottish-news/fury-over-pay-off-for-chief-exec-981139 .

some of her less shiny milestones from three years in Aberdeen should be remembered

In the end, Audit Scotland couldn’t decide if the city was amazingly inefficient or criminally negligent.

Aberdeen Voice tried to find the report Audit Scotland directed Grampian Police to produce on the matter.

However, Police Scotland has said they cannot find any record of a report on a multimillion pound real estate debacle they were directed to create by Audit Scotland. It would be difficult to find such a document as you can imagine.

In short, it was a sorry catalogue of scandals that swept through the city’s previous administrations (best not mention a curly-haired councillor disgraced for financial misappropriation or another councillor done for ‘kerb crawling’ while being appointed to work with youths).

Surely the woman who brought Derry its City of Culture status would turn our fortunes around, stop any corruption, and make accountability to the taxpayer a priority, and ensure our vulnerable citizens, our environment and our wildlife would be protected. The only way was up. So we thought.

While some newspapers are busy lauding her accomplishments, whatever they may be, perhaps some of her less shiny milestones from three years in Aberdeen should be remembered too.

She was not amused: Early days at Marischal College

It was not an auspicious start. She was not long into the job when the glorious refurbishment (read gutting and disposal of many architectural and historic items) of Marischal College was announced and an opening scheduled.

The taxpayers were supposed to be forelock-tuggingly appreciative as to how the project apparently came in under budget and on time – a first for Aberdeen by any reckoning. A mere £60 million pounds or so was spent refitting the interior of the Victorian building, designed in such a way that new, smaller office furniture had to be bought to fit the space. All the while, school closures were considered and further cutbacks appeared.

Valuable Victorian books were thrown in a skip (and their rescuer was threatened for saving them by a construction worker).

Amid much fanfare over the £60 million spend when it could have been £80 million, the ceilings leaked dubious substances onto the council offices from a men’s loo.

This £60 million gutting of an architectural gem might not have seemed a bargain to those harmed by swingeing cuts. Since the city doesn’t actually own the building, was this re-fit really a great bargain and the only solution to office space?

The council owns hundreds of office properties for one thing, and surely before embarking on such a project, carefully researched options and costs would be studied. Value for money?

An Aberdeen Voice request to see the costing of alternatives to the Marischal College refit was rebuffed; it was claimed the financials were actually the ‘intellectual property’ of the accountants, not the taxpayers whose money was under discussion and who ultimately had to foot the bill. And Ms Watts had just taken the reins of power. According to STV, she said:

“The City Council has brought to fruition a remarkable project which has created a stunning new public building for all the people of Aberdeen. It will be admired far and wide by citizens and visitors alike and will become the iconic (iconic is a hard word to avoid in Aberdeen) image for this proud city.”
http://news.stv.tv/north/19847-marischal-college-opens-its-doors-to-customers-for-first-time/

For those who opposed the previous budget cuts and saw their effect of people in need, ‘pride’ was hardly the appropriate word for this £60 million pound office building which gutted a gem. So the principle of pride and edifice before people was established in the opening speech.

Alas, nothing could stop the opening of the grandiose ACC offices at Marischal.

Unfortunately, someone leaked the date to the Friends of Union Terrace Gardens and other grass-roots groups, whose members peacefully showed up with placards at the launch of the new Marischal College, protesting the plans to turn the only city centre gardens which happened to be common good land into a development opportunity.

On the day the opening took place, these peaceful protestors arrived with placards. Some politicians chatted to the group; some VIPs seemed bemused. One woman on the scene positively seethed with rage according to several accounts.

As a protestor put it – Valerie Watts (for it was she) might have been fairly new in the job, but it was clear she was ‘fizzing with anger’. Watts had apparently been both on holiday and spray painted an orange/brown tan shade for the event, earning her the nickname in some quarters ‘fake bake.’

Responsibility:

Newly-ensconced Watts said:

“This is an exciting time in the life of Aberdeen. We are facing the tightest squeeze on public spending that almost any of us can remember but this gives us the chance to use our imaginations and rise to the challenges.

“It is my role as Chief Executive to take responsibility for leading on the priorities which elected members and the people of Aberdeen have set for this organisation – and I am bringing together all the strengths of this great city to make sure it continues to thrive.”

No one knew what she meant by ‘continues to thrive,’ but at any rate, Valerie was set to turn things around.

Deer Oh Deer:

Coinciding with Watt’s tenure, the LibDems and in particular their leader, Aileen Malone, were determined to plant ‘A Tree For Every Citizen’. This noble-sounding scheme somehow didn’t seem so noble when it was eventually revealed in Aberdeen Voice that the herd of deer on Tullos Hill, had been set for the cull before the consultation was published.

Deer had existed on Tullos without any cull for 30 years – all for trees which probably would not grow due to soil condition and decades of dumping (including industrial, household waste and some traces of radiation).

somehow her turning seven council departments into three departments wasn’t meant to mean job losses

Aileen Malone, Lib Dem, held all the cards when she was the convener of the Housing & Environment Committee; she issued the unprecedented ultimatum that the public had to come up with £250,000 in a short space of time, or the deer would be killed as the most ‘economic’ way to turn Tullos Hill into a forest.

Watts didn’t bat an eyelash and animal charities and opposition politicians called this unprecedented blackmail. Those in the know, including the Scottish SPCA derided the scheme and its cruelty; much of which has already been written. But it is to the part Valerie Watt played in the destruction of a herd of deer that should be looked at.

Should anyone want to view source documents and a report, they can be found here along with her letter to me.

A whole raft of information was put to Watts as to why the cull was unnecessary, cruel and flawed.

Animal Concern Advice Line, the Scottish SPCA, local residents, community councils all objected specifically to this particular cull and its circumstances. Watts’ behaviour in denying any possible options or alternatives to killing the animals, and her dismissal of all arguments from the opposition might have reminded those she left behind in Derry of her stance on jobs cuts she proposed as a parting gift.

When she was leaving Derry to grace Aberdeen with her presence, she created a plan to restructure Derry’s council. In a BBC report entitled ‘No Job Losses’ at Derry City Council, Watts ‘denied there will be any job losses under restructuring plans’. This then turned out to mean ‘I have worked out that potentially there may not be any job losses, but that depends on the willingness of employees to apply for these new jobs as they are advertised’.

In an article filled with rhetoric, Watts was said to have refused to negotiate over the restructure (as she refused to negotiate over the future of Tullos Hill’s deer), and somehow her turning seven council departments into three departments wasn’t meant to mean job losses, even though people had to apply and be accepted for jobs.

With such a command of logic and mathematics, it is no wonder she had a few lapses in terms of arithmetic with deer-related issues in Aberdeen.

These included losing track of a 3,000-strong petition against the cull and the tree scheme presented to the council’s representative Aileen Malone on national television. She also managed to lose track of anti-Tullos deer cull postcards (thought to be a much higher figure) which were hand delivered to a receptionist at the Town House who said he’d seen ‘tons’ of the postcards.

She used her Watts logic and claimed this had no bearing at all on the question asked

Hundreds of cards were handed out; dozens of people advise they posted their cards in, and over 60 were handed to the receptionist. Watts claimed to have received 35. The Scottish SPCA made a specific objection to the Tullos Cull, calling it ‘abhorrent and absurd’ to kill deer where trees were highly unlikely to flourish.

When given that quote, Watts replied to Aberdeen Voice that there was no evidence the Scottish SPCA opposed deer culls. She had taken a statement made by a senior Scottish SPCA officer directed specifically at the Tullos cull, and managed to come up with a statement which had nothing to do with the fact she was presented with.

This strategy of taking a specific fact and contorting it to either a specific focus or a widely painted assertion seems to be a Watts trademark, whether it is denying facts on deer killing or potential job losses during her Derry job restructuring.

When asked if a previous failed tree planting scheme on Tullos Hill cost Aberdeen’s taxpayers £44,000, Watts colourfully asserted that this was not the case. When pressed, she admitted that £43,800 (which seems to the lay person as being rather close to £44,000) had been repaid to the Forestry Commission for a failed tree planting on Tullos.

She used her Watts logic and claimed this had no bearing at all on the question asked, because the money was paid in March and the question was asked in May. Surprisingly animal welfare campaigners were not impressed.

Aberdeen Voice also uncovered the fact the cull was being planned, but was kept out of the public consultation (which only mentioned putting in rabbit fences rather than slaughtering deer). Watts wrote the consultation was ‘robust’ and that it wasn’t necessary to spell out what was required to have the projected forest.

She never did explain why then it was spelled out that deer fencing was mentioned in the consultation as a method for the plantation if it was not necessary to say what was going to happen to the deer if the trees were approved.

Several community councils, thousands of petition signers disagreed.

Eventually Aberdeen Voice found out the city spent tens of thousands of pounds on consultant Chris Piper, who would be paid if the trees were planted and the deer culled.

case after case of financial misappropriation arose

Watts could have stopped all this and saved money for the city in the bargain with saving deer, but she didn’t do anything except defend the cull, rejecting the wishes of elected community councils.

(It should be noted that at the following election, the LibDems who supported their ‘tree for every citizen’ scheme so staunchly were themselves culled. Kate Dean lost her seat, and a campaigner who tried to save the animals, Andy Finlayson, was elected).

Thirty four or thirty five deer were destroyed – and the fact remains the soil reports say the hill – a former refuse dump with a radioactive history on record – cannot grow trees that won’t eventually topple in strong winds, something Aberdeen has in abundance.

In the City’s Hallowed Halls:

Watts also oversaw a few internal struggles, as case after case of financial misappropriation arose. People apparently stole money from the council just before her time as well as during it. People engaged by the city to look after the elderly and otherwise infirm turned out to be thieving money from their vulnerable clients The council then had a colourful time as it bungled the potential cut of 150 jobs.

There have been other amusing stories as to the city’s mismanagement (well, amusing if you are not the people involved).

Valerie, while head of the operations, was surely not responsible for what was going on under her. That seems to have been outwith the remit of taking responsibility.

As the council meandered from one pointless expensive exercise to another (remember the City Garden Project anyone?), Valerie found time to invest our money in trying to relive her glory days. Back in Derry she had won the (apparently) coveted City of Culture Award, and she was going to go for it here, too.

Forgetting the fact that the city of culture has not seen any increase in tourists jetting into Derry, and that some of that city’s cultural infrastructure for music is facing financial ruin, Watts nevertheless pursued the Culture accolade for Aberdeen. This would have been a huge comfort to, for instance, the Torry-based artist collective Limousine Bull, which went out of existence.

Rita Stephen to come up with the goods and create a bid

They had provided art courses, exhibition space and studio rooms in Torry which were popular in the area. Bull ran out of money, and for want of a relatively small sum of money, died. Still, we managed to find money for the ‘Retail Rocks’ scheme in Torry.

Virtually all of the shops created in Torry (where shop holders were exempt from paying various taxes and got advice for their shops) folded, but there was no money for the Limousine Bull collective. Rather disappointing in a would-be city of culture trying to regenerate its poorer areas.

Selecting culture expert (???) Rita Stephen to come up with the goods and create a bid, Watts allowed a fair few Aberdonian’s tax pounds to be invested in pursuing the bid, in the process inventing the risible ‘gigs on rigs’ scheme.

City officials thought rock stars and the like were willingly going to go and perform on drink free, non-smoking, oil rigs in the rough North Sea so we could watch the concerts via video linkup in Aberdeen bars; of course these concerts could have been beamed to any onshore location. All of this was rolled out poignantly in what was formerly one of the city’s few independent record shops which also showcased bands, One Up records on Belmont Street.

Before leaving the issue of culture, it would seem that the approved arts organisations and people had no problem with funding.

SHMU, which undoubtedly does some good work, receives some £200,000 per year from the city, whereas Limousine Bull couldn’t get a few extra thousand. A city employee involved in the distribution of Creative Scotland arts funding managed to win enough money to create a film. Precisely who evaluated his bid as successful over the artists who failed to win funding will form a future story.

Artists have approached Aberdeen Voice concerned that the City seems to have used their artwork without prior consent or remuneration.

All this was on Ms Watts’ three-year watch. Where did the buck stop exactly?

Resigned:

Why did Valerie go? Could it have been due to her crossing swords with Alex Salmond over his unauthorised visit to the Bramble Brae primary school during a by election? No other political parties were given a chance to pose with children for photo opportunities at the grammar school. The SNP locally are saying, as published in the local Press & Journal, that Watts was finally tired of Labour embarrassing the city.

It is tempting as an idea, but if Watts were the embarrassed type, she waited quite a time to show it. Alas for the SNP, she’s said Labour was not to blame.

There is no word as to whether a leaving card or a collection is being made. Aberdeen Voice will keep you posted on any card signing, and what kind of severance package is being offered. Who will take the job next remains to be seen.

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Rise In Aberdeen Foodbanks Direct Result Of Westminster Welfare Cuts

Aberdeen City, Community 1 Response »

Mar 062014

Christian Allard at Instant Neighbour foodbank

North East MSP, Christian Allard made a speech on 4th March 2014 in the Scottish Parliament where he blamed the rising use of foodbanks in Aberdeen on the implementation of Westminster welfare cuts.

Speaking in the chamber about a recent visit he made to a foodbank in Aberdeen run by Instant Neighbour, Mr Allard said:

“In 2012 the organisation [Instant Neighbour] gave 1,343 food parcels to people in Aberdeen. The following year, this had increased by 127% to 3,051 food parcels.”

“What explanation is there for such an increase, if not for the implementation of the welfare cuts from Westminster?”

The SNP MSP explained that when he visited the foodbank it had run out of food due to high demand. Mr Allard also pointed out Aberdeen is the oil capital of Europe and asked members to imagine how it would feel to be destitute in one of Europe’s richest cities.

He went on to say:

“This year we have the opportunity to vote Yes for a better society, a fairer society, one that doesn’t waste taxpayers’ money on a programme of welfare cuts, but a society that recognises that we contribute and that we require support at different points in our lives.”

Christian Allard’s speech begins at 45.30: http://www.bbc.co.uk/democracylive/scotland-26432864

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Criminalisation Of Begging In Aberdeen

Aberdeen City, Articles, Featured 8 Responses »

Feb 142014

By Jonathan Russell.

The idea of criminalising begging takes us back to the dark ages. Laws are already in place to deal with aggressive begging and Breaches of the Peace and obstruction.

Criminalisation will only increase the problems of those begging, their inability to pay fines will just increase the numbers in our prisons and it is not cost effective.

The problems of Union Street declining has not been caused by beggars, as in the past begging took place whilst the street flourished.

The decline of Union Street is primarily due to planning decisions to increase the amount of retail outlets beyond Union Street, with its inevitable consequences. We do need to deal with the challenges that begging brings but good interagency work and alternative provision by homelessness agencies is the way forward.

Not all begging is benign but, at a time of austerity and food banks, the issue we should be tackling is poverty not begging.

In the current climate, where thousands of families are reliant on food parcels handed out by the churches, and social problems caused by austerity policies are increasingly on the rise, many cases are genuine.

It is hard to see what new legal measures could achieve. The law already covers begging which is obstructive, or causes fear or alarm

Obtaining money with threats or intimidation could lead to charges of robbery

There is a climate abroad which is making scapegoats of the poor – this is no different than the persecution of Jews, Blacks, or Gays in the past and must be contested the introduction of such a law compounds this climate.

To explain my interest in this area I would explain the following. I have lived in Aberdeen since 1975 and spent 10 of my early years in Aberdeen working in the homelessness and drugs and alcohol fields. This included working with Aberdeen Cyrenians, VSA leading an inter-agency project re: Solvent Misuse, and Albyn House where I was responsible for the outreach service for problem drinkers, many of whom where homeless.

I was involved in setting up Drugs Action and helping to set up the now closed Aberdeen Stop-Over project for the young single homeless. I had previously worked with Homeless people in Glasgow in the Simon Community. I also worked later with Health Promotions re: Drugs and Alcohol including at a strategic level and in helping to set up the initial pilots of the methadone pharmacy scheme in the city.

As Development officer for Turning Point I helped set up the Glasgow Drug Crises Centre and produced a proposal for such a development in Aberdeen supported at that time by Social Work but not by the Health Service.

most of the people of Eastern European origin in the city are hard working

I have nearly always lived in the city centre and, as in any other city, begging has always gone on – it is nothing new. In fact, I would suggest that at earlier times the begging was of a more aggressive nature and this has already correctly been tightened up on.

What we do no longer have is the group of problem drinkers who used to hang around the statue and the arches in UnionTerraceGardens.

I suspect that without the prescribing of methadone the begging situation in the city would be much worse.

What has developed, over approximately the last 10 years at least, is the begging that takes place by individuals sitting by buildings. We have, however, also seen an increase in begging over the last few years by a group of people from Eastern Europe of Romany background.

We must remember however that most of the people of Eastern European origin in the city are hard working. Without their presence the population in Aberdeen would be much lower with an increasingly ageing population. There are sure to be some challenges in such changes.

The demise of Union Street has nothing to do with begging but is the result of retail and planning decisions. The Bon Accord Development in the 70’s led to the decline of George Street; similarly the recent Union Square development has been the prime reason for the decline in Union Street.

In both cases this led to empty shops and to a change in nature of what shops provided, with the more upmarket retailers moving to the new centres. Retail units in Union Street have increasingly become aimed at the poorer end of the market with charity shops and shops selling goods cheaply.

I would suggest that any shopping developments linked to the AWPR will potentially have a further general detrimental effect on retail outlets in Aberdeen. On-line shopping will also increase and lead to a decline in retail outlets in the city, as in other parts of the UK.

Even if Aberdeen continues with its present high levels of affluence there are only a certain amount of goods that people will buy and this affects the number of retail outlets that can operate.

People who end up homeless (which includes those who are not sleeping rough but have no settled address) do not in my experience fit neatly into deserving and non-deserving. They all have problem backgrounds of some kind, but many also get involved in activity which is labelled as anti-social.

As well as the Jews, they were also a group who were targeted by the Nazis

Many of those using drugs and alcohol are masking mental health difficulties, which of course increase by their circumstances and continued use. Others come from broken families or from families that are chaotic and where crime is the norm. Many in my experience have lived in children’s homes.

Living in the situations that rough sleepers do is a nightmare and for those that are rootless, things are not much better – we should never forget that.

An example of a positive way of dealing with public anti-social behaviour was (and still is, on a reduced level) Albyn House, where rather than taking people who were publicly drunk to the cells and courts the police took them to Albyn House, where they were dried out and given advice or rehabilitated. This was an example of progressive public policy which rather than criminalising was aimed at decriminalizing.

The influx of the Romany population to Aberdeen is not surprising and is common across the UK. Following the end of the Communist Block this grouping lost their jobs and income. There are many, more of them begging on the streets of Eastern Europe and this is causing sharp divisions in Eastern European society.

As well as the Jews, they were also a group who were targeted by the Nazis. This problem is a European one but, unfortunately with the world-wide recession, it is unlikely to be tackled and will only get worse. Intervention needs to take place with this grouping to work with them to engage more productively with society – criminalization is not the answer.

The Big issue has taken a positive stance in this area by encouraging Romanys to sell the Big Issue

I realise from speaking to a variety of people in Aberdeen that there are very mixed feelings about people begging on the streets and many would support the idea of them being banned or even criminalized, though others are appalled at the proposal or do not see this as one of the major problems facing Aberdeen.

It is, in my mind, potentially helpful that this debate is taking place, however, I would ask councillors to think more about this challenge. Given the cuts that are yet to be implemented UK-wide it is certain that, as family breakdown accelerates, there will be increased numbers becoming homeless.

This in turn will lead to more people begging and, if the law is put in place, this will lead to more people becoming criminalized, being unable to pay fines and ending up in prisons and then, after their sentences are completed, being in an even wore situation and re-offending again.

Cuts have also been made to services for the homeless and other vulnerable groups

This will make people who are not happy about begging even more annoyed and calls will come for even more extreme action. This to me is a worrying as it will lead to an increasingly less tolerant divided society.

Aberdeen has its own dynamic compared to most cities in the UK most people are comparatively affluent but those with basic incomes are often worse off due to prices generally being higher for a variety goods. There are also areas in Aberdeen were levels of poverty are high and this contrasts markedly with the overall wealth of the city.

Cuts have also been made to services for the homeless and other vulnerable groups in the city or re-commissioned, often inappropriately. Lack of support to these other vulnerable groups could lead to homelessness and these groupings will be even less able to deal with the rigors of being homeless and criminalizing them would be inappropriate.

A major problem we are facing is a lack of resources however the costs of incarcerating people are far higher than any money that would be spent on community resources. The approach needed is one of developing relevant resources which encourage better integration, interagency work and the fostering of a more caring attitude in society.

We also obviously need to see a redistribution of wealth in this country. If not, begging on the streets will become only the tip of the iceberg.

Criminalisation is not the way forward. It may gain some support in the community in the short term but others will see the City as heavy handed in its thinking and it will cost the public purse more rather than less in the long term. We need to see a much more positive interagency proposal.

Image: Homeless man – flickr Creative Commons. Credit: Fran Urbano.

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