Mar 302012
 

Midway between that referendum and the forthcoming council elections,  Old Susannah takes a look at the nature, effect and effectiveness  of propaganda. By Suzanne Kelly.

Tally Ho! The weather in Aberdeen has been glorious; half of the town seems to have been at the beach or Torrymelinos this past Sunday; even the dolphins showed up to add to a beautiful spring day. I just finished reading Adam Ardrey’s book ‘Finding Merlin’, which I review elsewhere in Aberdeen Voice.

Ardrey makes some interesting observations in this book. Between this and a thread on Facebook where a city employee set out to defend the City’s publication ‘Our Green Times’ which uses (whether deliberately or not) several propaganda techniques, Old Susannah has been thinking about ways in which people are being manipulated by those in power.

Ardrey’s book and other works show that what little we think we know today about Merlin and Arthur had been deliberately garbled by the propaganda arm of the young Christian church. There was a huge power struggle between the existing druidic tradition (where education was prized, men and women were largely equal) and the new Christian movement.

The church needed to seize power and to instil fear and respect in the populace in order to survive and become supreme. The old ways favoured a system of meritocracy for choosing kings; the church used politics and propaganda, and chose to favour hereditary government. The church could not allow any alternative religion or opposition of any kind to exist.

So the druid Merlin was referred to as a madman and a conjurer in Christian-controlled texts of the times, and non-Christians were lumped into one group called ‘pagans’ and ‘heathens’.

The Christian church’s use of propaganda was skilful, and it pretty much ensured druidic tradition was purged from the records. Only in coded form or in ridicule would the church allow its opponents to be referred to at all. The new religion’s propaganda was sometimes brutal, sometimes subtle – but in the end it won.

Thank goodness today people come to positions of power and influence because of their abilities and not because of money and connections. Take Donald Trump for instance (please – just take him), or some of our amazingly-gifted local politicians and ACSEF members.

They don’t rely on connections, money or propaganda; we love them for everything they’ve done to us – sorry,  ‘for us’. We can rely on our governments to tell us the truth, the whole truth, and nothing but the truth. Sure we can.

Just look at the fantastic Phase 2 consultation for the tree planting.

No one objected to the scheme! Result! Of course no one knew at the time there would be a deer cull and most of the trees (89,000 plus) would be plunked on Tullos Hill (as the info had been deliberately withheld), but there you go. And surely no one in power would use ridicule to discredit or suppress vocal opponents?

  we are constantly being bombarded with subtle propaganda tactics, which can be quite effective

It’s not as if the work of weapons expert Hans Blix was in any way devalued when he said that Iraq did not have secret stashes of ‘Weapons of Mass Destruction’ (this expression, ‘WMD; is itself an example of creating a propaganda phrase which caught on).

Dr. Kelly (RIP), the government advisor, was labelled a ‘Walter Mitty type’ by government mandarins for his courageous stand against the propaganda that led to the Iraq Invasion. Dr Kelly paid for his principles with his life. In fact the whole case for this bloody war was based on a dossier that was ‘sexed up’ – i.e. blatantly amended and turned into propaganda. This was done by the top propagandists of our times: Blair and Campbell.

But we are constantly being bombarded with subtle propaganda tactics, which can be quite effective. Believe it or not, this even happens here in Aberdeen! Perhaps our kindly, benevolent government just wants to help us by digesting facts for us, skipping the ones that might upset us, and painting a rosy picture for us to swallow without question. Quite nice of them, really.

One person, however, wants to analyse the secrets of the propagandist and ruin the party.
See: http://history.howstuffworks.com/historians/propaganda1.htm

Time (finally) to get on with some propaganda-based definitions…

Fear: (noun) state of alarm or terror. In propaganda terms, ‘fear’ is deliberately employed to influence people’s thoughts and actions.

Surely no one would ever employ fear as a propaganda weapon against the good people of Aberdeen? Well, there was the little matter of fear-based propaganda over the gardens: build them or no companies will come to Aberdeen to set up shop was the message that pretty A3 colour flyer and the BIG partnership put about.

Of course BiG is really, really subtle when it comes to propaganda, as we’ve seen recently. While you got this message in a Technicolor brochure, your employer may well have been writing to you to say you should vote for the web. The combined message was: ‘Worried about money? Then you better support the web and we’ll all be rich and have jobs.’

Fear was used on us – and it was used by the secretive group Vote for the City Gardens Project which was accountable to no one – but which certainly put out a nice quantity of propaganda. Old Susannah has copies of the lovely A3 colour leaflet, and is considering whether to frame them or recycle as a cat tray liner. I’ll get back to you on my decision.

Here’s a decision which I have made.

According to my sources, some of those who participated in and/or financed and/or were connected to the secretive ‘Vote for the City Gardens Project’ included:

Stewart Milne (no introduction needed)
Mary Martin (of the Douglas Hotel)
Sandy Clark
Mike Wilson
Colin Manson
Tommy Dreelan

I am sure these modest heroes who helped voters choose sides won’t mind my mentioning them now. However, if any of those named above writes to deny any involvement with VFTCGP, then I will be more than happy to remove their name from my list and issue an apology. If any other VFTCGP supporters or financers who wish to step up to receive the grateful public’s thanks, then please do get in touch. But on with our definitions.

Stop Government Propaganda Now: (noun) American legislation supported by GW Bush (really) which sought to make it a criminal offense for government to influence media to push particular stories, skew the truth, or to hide information.

Has anything like that happened in Aberdeen? Would the local media allow itself to be used? Would local media favour its higher-spending advertisers? Hmmm.

But the city government has its own periodicals including ‘Our Green Times’. The supporter of this periodical who was flying its flag on Facebook quite rightly pointed out that the thing costs time and money to create (taxpayer money mind).

Old Susannah was in an interesting Facebook thread with a city employee who is involved in the publication of Aberdeen City’s PR ‘newspaper’, ‘Our Green Times. Consciously or not, the person who made these posts used several more types of tools straight out of the ‘Propaganda For Dummies’ handbook. The first was:

Name-calling: (noun) Propaganda tool which seeks to both deflect attention away from any actual issues, and create a negative stereotype to brand groups of people with. Name-calling can become widely used (the word ‘CHAV’ being a good example), or it can be something subtle.

The Facebook defender of Aberdeen City’s publication, ‘Our Green Times’ somehow came up with a category of people he called ‘campaigners’, and the implication was made that campaigners were failing to see all the good things going on in the city, and focused on the negative.

Gee. ‘Campaigners’ – the word evokes right-on, aggressive militants with placards, if not extremists. Yet when it comes to issues such as Union Terrace Gardens, the Tullos Hill situation, and the swingeing budget cuts, there is no wider cross-section of ‘campaigners’ to be found. I call them ‘people’ myself. But he’s tried to establish that there is a negative group of people, and they are to be lumped together and called ‘campaigners’ for criticising the city.

Card-stacking: (noun)to present only information which makes a positive public impression – and in so doing gives the impression – whether deliberate or otherwise – that there are no negative issues.

This is in many ways the most serious form of propaganda weapon. In the words of the author of the article published in ‘how stuff works’ in the above link:-

“… the bad stuff is left out entirely. …. this type of propaganda technique presents a lopsided and unrealistic viewpoint that is dangerously deceptive.”

Sorry, but the above description fits exactly with what ‘Our Green Times’ does. In its pages there are no deer culls, no high pollution figures for Wellington Road, and no urban sprawl issues.

By now the Facebook discussion thread was growing by leaps and bounds. Another poster asked our man from ‘Our Green Times’ about several environmental issues. The reply that came back? ‘FFS’. (Old Susannah is told this is a rather rude expression, but I certainly have no idea what it means and no intention of defining it).

Yet another poster showed up to defend ‘Our Green Times;’ she ridiculed the guy who’d asked the questions.

Ridicule: (noun) to belittle by poking fun at something or someone; in propaganda terms, this is an old standby favourite. If you can get your opponent laughed at, then you are on your way.

Old Susannah will put her hand up: I have actually believed one or two people in power in our fair city deserving of a bit of ridicule; some readers may have seen small traces of this in previous columns. Historically, the English literally belittled Napoleon – he was jokingly called a small man. Truth was, he was taller than Nelson.

Old Susannah could go on about other propaganda tools such as ‘transfer’ and ‘Greenwash’ (to pretend to be greener than you are to win acceptance ), but you get the idea.

We were blitzed with propaganda over the City Garden Project, and in the run up to the May elections, we will be bombarded with yet more. I’d just like to suggest strongly to everyone to take on board that these techniques exist, and to be alert for when they are used on you.

By all means apply the same criteria to everything you read in The Aberdeen Voice too.

The Voice will take articles and writing from anyone on any subject, so long as it meets legal requirements for publication. The Voice has no agenda of its own; it has printed items on both sides of issues such as the Menie Golf Course and the AWPR. It has no advertisers to keep happy, only readers to hopefully inform, entertain, and amuse.

Feb 222012
 

Aberdeen is a city on a downward slide. That makes for uncomfortable reading, doesn’t it? Our gut instinct, being the proud city we are, is to reject this notion out of hand, though deep down we all know it is true, says Graeme Campbell.

The cause of the rot is not easy to identify. Opinions will differ and any debate would most likely be fierce. It is perhaps best to say the gradual slip in the condition of our once grand and glorious city can be pigeon-holed to two vague categories – poor planning and the slow decline of the energy sector.
Or perhaps over-dependence on it? Two and a half pigeon holes then.

So, avoiding any unhelpful debate surrounding the way we arrived at this point, we must as a city look forward to the best possible route to a future of prosperity. We must look for a plan to return grandeur and pride to the Granite City. 

Our carefully-selected councillors, together with possibly our most successful loon, Sir Ian Wood and the private partnership Aberdeen City and Shire Economic Futures (ACSEF) think the solution to the gradual slip is a new garden. Not exclusively a garden you understand, but a garden with conferencing facilities and a café. To give all credit due, the plans certainly are impressive and whilst perhaps not so impressive in keeping with the architectural fabric of the city, we are, of course, a city not afraid of change.

In the most recent release posted through all city letterboxes, Aberdonians are directed by a host of interested parties to the key point, “You deserve it!” Well yes, most likely. But oddly, relegated to fifth, is what will be the key point for most Aberdonians. Once again we don’t want to admit this but we’re all thinking it, “We can afford it”.

Will Aberdeen City be pushed to the very brink of bankruptcy by this plan, as happened when the city took the bold decision, so long ago, to construct our now famous Union Street granite mile? Probably not. Of course, Sir Ian’s mammoth oil wealth will go some way to meeting the cost of development on the site – and only on this site, he has been quite clear on that point – the further estimated £100m will come from business rates, council tax – of course – and the heinously-complex Scottish Governmental TIF funding mechanism.

Now nobody wishes to be bored to tears by the inane workings of a TIF, so let’s not worry about that. Instead, let’s find out what other places are using TIF to create.

  • North Lanarkshire plans to spend £73m to transform the former Ravenscraig steel site, an area of quite unrivalled deprivation, to the benefit of the many people who live in the area.
  • Argyll and Bute is to extend the North Pier at Oban for £20m, further securing the town’s position as Gateway to the Islands, a major boon to the tourist industry no doubt.
  • Falkirk plans to use its TIF in a far less grand manner, by bringing about strategic road developments and improving the flood defences. Clearly a sound decision.

But the plans which should be of most interest to any outward-looking Aberdonian comfortably seated in Europe’s oil capital, come from Fife. The council there is to spend its modest £17m TIF improving vehicle and marine access to the already-thriving Energy Park Fife, where renewables are already being constructed. I know, that’s not oil, but it is very real, so let’s not sneer. Not content with this, Fife has also begun construction of the Levenmouth Low Carbon Investment Park which is set to become ‘Scotland’s foremost energy park’.

Whilst in Aberdeen we plan to spend £150m on a garden and café.

Is anyone else embarrassed? Our great city, the economic powerhouse of Scotland, is being distracted by plants and trees whilst other towns are going green in a wholly more financially-sound way. This city has the engineering and science skills, brought by the oil industry and our two modern and diverse universities, to become a world leader in the renewables field.

You don’t need to do the math to know a research and development centre, alongside a manufacturing park would be of significantly greater financial gain to the city than the redevelopment of a garden.

This brings us to the question – has the Council considered this? Understandably, Sir Ian may not be keen, but this is about so much more than the oil empires held by the few; this is about the continuing prosperity of the many.

So, as the ballot papers find their way to you, look around the city. Look for the signs of the rot brought about by poor management by those who, for too long, have only looked inwards – decision makers enjoying the security of the formerly-booming local oil industry.

Consider what the world, given the current environmental and economic climate, would look to Aberdeen for. Horticultural tips? A show in our new 5000-seat outdoor amphitheatre? Or will they look to Europe’s ENERGY Capital to lead the way to a bright new future of renewable energy? And then, as our city leads the world in technological advancement in the renewables field we will look forward to investment, to jobs and to success.

When the ballot paper lands on your doormat, consider what Aberdonians truly deserve and ensure your vote lets our council know just what you want for your future.

Feb 192012
 

TIF – doesn’t this American innovation in borrowing just sound fantastic?  You get to ‘unlock’ money, re-develop an area, and money comes flooding in.  What could be wrong with that?  Karin Flavill looks across the pond to the home of the junk bond and bad mortgages, and doesn’t like what she sees.

While arguments rage over the future of Union Terrace Gardens, there’s consensus about one thing.  Tax Increment Funding is a somewhat difficult concept to get to grips with.  Not because the basic definition is complex.

TIF funds development by borrowing against future business tax gains arising as a consequence of that development.   New developments mean new business rates.  The local authority keeps a portion of those business rates (from businesses that wouldn’t have moved into the area but for the development) to repay the loan.

The complexity arises in assessing how this mechanism can be applied in a manner that avoids various potential pitfalls.  TIF is still very much in the experimental stages in the UK, so we lack a domestic reference point to understand how well the process is likely to work from start to finish.

When business is attracted from one area to another by a TIF funded development, it may be at the expense of another area.  This is known as “displacement”.   The area benefiting from TIF is pleased to lure business away with its spanking new TIF-funded development.  The region losing out wants some protection against financial detriment.

The TIF scheme provides that tax increment coming at the expense of another region can’t be retained by the local authority to make TIF repayments.  Like other NDRs, those increments must be sent to Central Government who will pool them with other funds then redistribute the funds equitably among regions.

Rather than being a tool to give cities a competitive edge and win City of Culture status for celebrated developments (the vision currently being promoted in CGP supporters’ referendum campaigns), TIF was first developed in the US as a means of helping regions to improve their most blighted areas.    Gradual shifts away from this philosophy, and increasingly creative ways of arguing blight, have led to many states in the US tightening up legislation to prevent TIF from being awarded except where genuine blight is demonstrated.

Chicago is often cited as example of the TIF scheme being misused to benefit the areas that least need it.  In August last year, a report was released outlining areas for improvement in the operation of TIF in that city.  The report highlighted problems regarding the monitoring of TIF expenditure.

Taxpayers had not been afforded easy access to information that would help them understand the TIF process or to evaluate the performance of the investment.   This reduced transparency of the process.

  although the initial cost proposed was $224.3 million, ultimately the park cost $482.4 million

The harder it is for the ordinary citizen to understand the TIF process and to evaluate the success of the development it funds, the greater the potential for corruption and abuse of the process by those who do understand it, and who can make it work to their own advantage.

That some will seek and gain an advantage through cronyism is an unfortunate element of life from which no city is immune.

In the 1990s, Chicago Mayor Daley (no relation to Arthur) developed a strong attachment to a project that would come to be known as Millennium Park.  A 16-acre landscape situated over an underground parking structure, it was built on top of Railroad tracks in an existing park called Grant Park.  The architect involved was Frank Gehry who had won international acclaim for the Guggenheim Museum in Bilbao.  The Chicago Tribune enthused that:

“The most celebrated architect in the world may soon have a chance to bring Chicago into the 21st Century”.

The park has certainly won many admirers worldwide and is, in many ways, an excellent model for what the City Garden supporters are hoping that project will become.   Properties in the immediate surrounds have become very fashionable and have increased significantly in value.

For others there has been a hefty price tag.  For example, although the initial cost proposed was $224.3 million, ultimately the park cost $482.4 million.  The park has come at a very high price to Chicago residents in terms of cuts to funding of public services and job cuts that were necessitated by the cost of the park.  Salt is rubbed into the wound, on occasion, when the park is closed to the public so that corporate functions may be held there.

During and after the building of the park, Mayor Daley was frequently criticised for alleged cronyism in the awarding of contracts.   Other areas of the city continued to deteriorate, while their inhabitants observed the increasing wealth and prosperity of those parts of the city that benefited from TIF funded schemes.
Areas that never suffered from true blight in the first place, but which were a focus of interest for developers, politicians, owners of business premises and others who could make the TIF scheme work for them.

In some ways it’s puzzling that we, supposedly a far more socialist nation than the US, are applying a model of TIF so similar to that model which states in the US have been increasingly trying to move away from by drafting legislation that aims to help TIF function in accordance with its original aims.

There has always been a tendency for conservatives to condemn the poor for their reliance on state sponsored welfare, but in recent years have people started questioning more vigorously the exploitation of taxpayer financed schemes by the some of the biggest players in business (players who have traditionally, but not always accurately, been lauded for their self-sufficiency).

TIF deserves close attention for its potential to increase this problem.  Failure to know, or care about, the original philosophy of TIF leaves us less alert to its potential for misuse that could worsen existing inequalities in our society.

The UK version of TIF springs from recommendations in a 2008 report by PWC and Core Group Cities for an alternative method of funding developments in core group cities (the 8 largest regional cities in England).   The report is here.  

It begins with commentary on the economic successes of the core group cities, and highlights continuing problems relating to unemployment and deprivation in some neighbourhoods.    It states an aim to “rejuvenate communities, provide new employment opportunities and stimulate further economic growth.”

  Promoters of the CGP dismiss the possibility of serious overspending as scaremongering

The report then discusses the increasing political emphasis on a devolved approach to economic  development .   A defining aspect of TIF is that it permits local authorities greater autonomy in the matter of funding developments once they have been granted the TIF loan.

For this to happen, they must submit a detailed business plan to the SFT who make recommendations to central government regarding feasibility.

PWC, having been involved in the UK version of TIF from its conception, is ideally positioned  to assist local authorities with the preparation and submission of their business plans.  Finance and Resources Committee meeting minutes from September 2010 discuss PWC’s remit in preparing a TIF business plan for approval by the SFT.  The minutes refer to several important city projects the Council would wish to progress, whether or not the City Garden project went ahead.
See: https://docs.google.com …committees.aberdeencity …pwc+tif+business+plan

“The terms of PWC’s assignment make it clear that they are required to produce a business case that ensures zero financial risk for the Council.”

The Council states that it will make no financial contribution to the City Garden Project.  The development must be funded wholly by private contributions and by the TIF loan and completed within the budget.

Promoters of the CGP dismiss the possibility of serious overspending as scaremongering.  Chicago’s Millennium Park experience demonstrates, however, how this can and does happen.   As a response to such concerns, Sir Ian Wood has pledged an extra £35 million.   It’s not clear what will happen if the cost exceeds this.

Despite ACC’s insistence that PWC present a business case involving zero risk to the Council, the draft business case completed in January of this year contains no such promise.  It focuses on minimising risk and balancing the risks involved in carrying out the project against the risks involved in doing nothing.

Outlining the need to attract investment and talented professionals to Aberdeen to assure future prosperity, the plan refers particularly to the energy industry.  Due to the oil and gas industry being regarded as the primary targets for investment in Aberdeen, and Aberdeen’s existing status as the main centre in Scotland for this industry, PWC anticipate displacement being low (10%).   A low anticipated displacement figure is essential for arguing the likely success of a business plan.

  PWC appears to anticipate investment by that industry increasing in Aberdeen, alongside the increasing depletion of oil and gas reserves

Work is expected to be completed over a 5 year period beginning this year, with TIF borrowing being carried out in stages (the first draw down taking place in 2014).  The proposed development is expected to create approximately 2 million square feet of commercial space and to speed up the development of a further 1.4 million square feet of commercial space.

The CCRS (City Centre Regeneration Scheme) predicts 6,500 new jobs resulting from the development.  It should be noted, though, that that figure is a “by 2039” prediction.

The business plan states:

“Oil and gas reserves will run out over time, perhaps 30 years, and Aberdeen is looking ahead. It knows it needs to adapt its industrial base and re-examine how it creates wealth and prosperity.   Aberdeen is confident it can do so.”

This project is to be completed in 2017, and its success relies significantly on a very low displacement figure of 10%.  In presenting this figure PWC relies on the oil and gas industry, already present in Aberdeen (and therefore not being taken from other areas) being the main sources of increased investment in Aberdeen.   Confusingly, PWC appears to anticipate investment by that industry increasing in Aberdeen, alongside the increasing depletion of oil and gas reserves in the North Sea.

Perhaps in anticipation of confusion about this assertion, much is made of the possibilities relating to renewable energy – an industry Aberdeen must embrace and develop expertise in, regardless of Donald Trump’s views.  The question is whether developments in other areas area will not only compensate for the steadily diminishing presence of the oil industry, but expand to the point where the business plan can work as anticipated.

Regarding the City Garden proposed as a replacement for UTG, the report comments…

“While there is no direct benefit the fact that the City Gardens Project becomes a reality and underpins the CCRS will benefit Aberdeen’s wider population and business community.”

During a recent BBC Scotland debate, campaigner Mike Shepherd (a geologist with years of experience in, and expert knowledge of, the energy sector) was shouted down and jeered at by pro CGP hecklers.  The latter have tended to define opponents of the City Garden Project as tree-huggers and luddites who will be crushed by the wheels of change.   UTG has also been described, throughout the debate, as a dangerous area…despite police reports indicating far lower crime levels in UTG than in surrounding street level areas.

The debate has often been an acrimonious one, featuring conflicts of various kinds.  Already the TIF pilot scheme in the UK form originally advocated by PWC has brought deep divisions to Aberdeen.  It seems set to be promoting a cheerfully unapologetic attitude, amongst some in our community, with regard to social exclusion.

A popularly cited reason for getting rid of UTG is that this will also rid the city centre of people with drug and alcohol related problems.   Presumably, relegating them to more blighted areas that would, were TIF being applied in a manner consistent with its original aims, be the areas actually benefiting from this scheme.

 

Jan 272012
 

The business case for TIF and the City Garden Project by Mike Shepherd

The Technical Feasibility Study for the City Square Project was published in 2009. A key problem area was identified early on:

“The difficulty in quantifying the economic gain is considerable. To describe the benefits in cultural and civic terms and to focus on the future raison d’être of the City of Aberdeen will become the means of explaining the benefits. However it is very difficult to make these benefits seem tangible. Yet this is precisely what will have to be done for a proposal to succeed.”

Three years later, and with the scheme rebranded as the City Garden Project, they are still struggling to give any clear explanation for the economic benefit.

The business case for Tax Incremental Financing (TIF) was presented to Council on Wednesday. TIF is a mechanism whereby a local authority borrows money from central government funds to finance a development project. Any new business rates created by the project are used to pay off the loan and interest. It is intended to act as a self-financing mechanism.

The City Garden Project has a nominal cost of £140m, of which the promised private sector contribution is £70m. Aberdeen City Council is being asked to underwrite a £70m loan through a TIF scheme. This is part of a larger plan to redevelop the city centre which includes knocking down St Nicholas House, the Denburn car park and health centre area.

The TIF business case presented to councillors is, however, seriously flawed.

http://committees.aberdeencity.gov.uk/mgConvert2PDF.aspx?ID=18350

An Attractive Aberdeen

The main justification for the City Garden Project is that it would apparently create a high quality city centre to make Aberdeen more attractive. This is supposed to act to retain and draw in energy and other professionals, together with an increased number of visitors.

Research shows that talented people choose place rather than job when making location decisions. As an Energy City, Aberdeen competes for skilled people with….areas like Abu Dhabi, Kuala Lumpur, Houston and Perth (Australia).”

Yet, a survey published two months ago makes this claim somewhat questionable.

ABERDEEN has been rated one of the world’s top cities to live in for the second year in a row, a survey published today reveals.  Quality of life in the Granite City is ranked above that of Hong Kong, Los Angeles, Houston and Dubai in the study, which is used by governments and multinational firms to help decide where to send staff.”

http://www.pressandjournal.co.uk/Article.aspx/2536835

Jobs Creation

Most controversial is the claim that regeneration of the city centre could create 6,500 jobs.

The report sets out how his figure was derived. A questionnaire was sent out by the Council to companies and a small number of interested parties in Aberdeen with the intention of assessing the economic impact of the city centre redevelopment. One of the target groups comprised key developers, land owners and agents. Of the 35 parties in this group, only one replied to the questionnaire. They then contacted all remaining 34 developers by phone. Even then, when directly approached, only six of the 34 were prepared to speak to them.

Unfortunately this question did not garner any responses

The developers were asked ‘to identify the extent to which the delivery of each of the five development schemes would result in uplift in development potential for housing, retail outlets, office space, business units, hotels, tourism and leisure in the City Centre’.

However:

“No respondents identified the project as having any impacts on the development potential for business/industrial units in the City Centre”.

Then:

The next question in the survey requested developers to provide an indication (in quantifiable terms such as the number of units, square footage etc) of the extent to which the identified benefits would impact upon their organisation’s investment plans and/or objectives. Unfortunately this question did not garner any responses as consultees felt it was too soon and/or complex to attribute impacts in these terms.”

That questionnaire wasn’t that much help then.

“Additionally it was apparent that individual developers and other respondents identified potential uplifts in activity and recognised that the timing of investments would be brought forward as a result of TIF. However, many of these developers still had expectations that, irrespective of future economic conditions or City Centre Regeneration Scheme (CCRS) , their specific sites will be taken forward. It was apparent that individual developers and other respondents identified potential uplifts in activity and recognised that the timing of investments would be brought forward as a result of TIF. However, many of these developers still had expectations that, irrespective of future economic conditions or CCRS, their specific sites will be taken forward.” (HA!)

SO WHAT DID THEY DO NEXT ?

“In balancing these different responses (i.e. CCRS will act as a stimulus to market uplift in general versus developers views that each individual site is likely to be taken forward anyway) the Council, ACGT Enterprises and their advisors have initially assumed a profile of development under the no CCRS scenario whereby:

“None of the cultural, leisure or retail elements of the CCRS projects will be taken forward;

“At least one major site totalling 0.720 million square feet will be taken forward in the anticipated timescales projected by developers regardless of CCRS; and,

“On the remaining sites identified, 1.369 million square feet will go forward without TIF over the 25 year period considered, but such developments will lag, on average, three years behind the profile assumed with CCRS.

“On the remaining sites identified, 2,029 million square feet of development (out of total development potential of 3.468 million square feet) will not go forward without the CCRS, over the proposed 25 year TIF period.”

THIS IS THE KEY BIT

“the Council, ACGT Enterprises and their advisors have initially assumed a profile of development “

AND THEN …

Took the 2,029 million square feet figure, multiplied it by ‘standard job density ratios,’ and came up with 6,500 jobs.

Assumptions?

So what happened next?

“In balancing these different responses (ie CCRS will act as a stimulus to market uplift in general versus developers views that each individual site is likely to be taken forward anyway) the Council, Aberdeen City Garden Trust Enterprises and their advisors have initially assumed a profile of development under the no CCRS scenario whereby:

…. 2,029 million square feet of development (out of total development potential of 3.468 million square feet) will not go forward without the CCRS, over the proposed 25 year TIF period.”

The footage was multiplied by standard figures which relate development area to the number of jobs likely to be created, hence 6,500 jobs.

The key word here is ‘assumed’. An exercise in speculation somehow translated into a press statement that the City Garden Project will create 6,500 jobs. This wild claim led to much scepticism. It was pointed out that the London Olympics are only predicted to create 3,000 new jobs.

The Risks

The discussion on project risks is somewhat lightweight. One concern is the possibility of massive cost over-run on the project. The report even tacitly recognises the possibility:

“It has demonstrated with the redevelopment of Marischal College that it can have a major project delivered on time and under budget. This is a rare accomplishment in such large projects.”

In June 2010, I gave a deputation to a Council meeting where I asked who would pay for any cost over-run on the City Garden Project. The then Chief Executive, Sue Bruce, decreed that the private sector would pay, not the Council. Since that meeting, there has clearly been little progress on the matter. The report mentions that:

“Before entering into any TIF arrangement, ACC will endeavour to structure an arrangement with its private sector contributors that minimises ACC’s risk exposure.”

The Council should walk away from the project unless it gets a legally-binding commitment from the private sector to cover all costs of any project over-run. The major financial problems caused in Edinburgh Council as a result of the projected £200m-plus overspend on the trams project should be foremost in councillors’ minds, one would hope.

TIF can be a risky way to borrow money. The risks are understood by the Council:

“For most TIF projects the most significant risk would be in relation to the business rates identified not materialising or being delayed. This would result in ACC having insufficient revenues available through the TIF mechanism to service and repay their borrowings.”

There is another risk. The loan will be in place for a period of 25 years, gradually being paid off, it is hoped, by new business rates. Like a mortgage, interest will accrue on the unpaid part of the loan. The business case assumes an interest rate of 5.2% over the 25 year period. Should interest rates rise by only 1%, then there will be a predicted shortfall of £20.7m left to pay after 25 years.

Careful reading of the TIF business case for the City Garden Project shows that it is based on unexplained assumptions, optimistic extrapolations and will involve financial risk for the Council. Yet the public are being told otherwise.

Tuesday’s ‘Press & Journal’ quoted a City Garden Trust director, who mentioned they had polled 50 people in Aberdeen. Those against the City Garden Project had said the city could not afford the project.

“When the funding was explained and the economic benefits outlined, ten of these people changed their minds. “

This is what I would have told them instead.

“Your house needs doing up, you are heavily in debt, you can barely find the cash for the essentials in life. Should you take out an enormous mortgage for a new patio and garden? No!”

Nov 242011
 

With thanks to Brian Carroll.

Teachers, Local Authority Workers, Civil Servants, Community Organisations, Pensioners, Anti Cuts Alliances and members of the general public will be taking part in a Rally on Wednesday 30 November 2011 at 12 noon in the Castlegate, Aberdeen, as part of the National Day of Action.

It is expected anywhere between 2.5 and 3 Million Union Members will be participating in Strike Action against the Government’s Pension Proposals, as well as in support of Civil and Public Sector jobs and services.

This rally has been organised by the ATUC and is being supported by all Unions affiliated to the ATUC as well as by other organisations who support the ATUC.

Consisting of members from Unions such as Unite, Unison, GMB, EIS, PCS, CWU, UCATT and others, the rally will also have representatives from Community Organisations, Pensioners, Anti Cuts Alliances and members of the public taking part. This event will be the culmination of the National Day of Action in Aberdeen, with thousands of Union members having taken Strike Action and hundreds of Union Members having manned picket lines from 6am or earlier.

Speakers will be from Local Branches of National Trade Unions, representatives of various local community and anti cuts alliances and public service users.

Commencing at 12.30pm with people gathering from 12 noon, The Rally will end some time between 1pm and 1.30pm.

Everyone taking part has the common aim of working together to:

  • challenge poverty levels and campaign for the fair and equitable redistribution of wealth across Scotland and the UK
  • campaign to protect those hardest hit by service and benefit cuts
  • challenge austerity and call for investment in the UK economy which will create jobs, put Britain back to work, therefore boosting the economy and cut the deficit
  • protect pay, pensions, jobs and services of all civil, public and private sector workers
  • challenge the government to collect the £120 Billion tax gap of evaded, avoided and uncollected tax
  • get the banks working for the benefit of the country, to free up opportunities of investment, for them to start paying back the bail out money and to use the £850 Billion of banking assets the UK Taxpayer now owns for the benefit of the country as a whole.

They say that “we are all in this together” but the bankers and owners of big business are still getting their multi-million pound salaries and bonuses and the majority of the cabinet are millionaires.

The top 50 of the wealthiest people in the UK saw their personal worth increase by 35% in the last 2 years whilst middle and low income earners saw their income fall by at least 15% in the same period. It will fall by at least another 7.5% in the next year, if the Cuts agenda continues.

Jobs and services being lost now, will be lost forever !

Wednesday 30 November
Castlegate, Aberdeen.
Commences: 12.00 noon.
Ends: Between 1pm and 1.30pm. 

Oct 132011
 

How can Labour  move forward in the wake of the SNP electoral Tsunami of May 2011? Mike Martin interviews  Barney Crockett, the Labour Group leader on Aberdeen City Council.

What is your explanation for the overwhelming SNP victory in May?

The first obvious point to make is that everybody who didn’t want to vote Labour transferred their votes to the SNP. It should be noted that Labour’s problems did not start in the last election since Labour’s vote has been similar in the last couple of elections. But the weakness was disguised by that fact that people who didn’t like Labour voted in different ways. On this occasion it all came together so that made the situation for the SNP overwhelming.

I think the explanation for that is what the SNP managed to do is make a large part of the Scottish population scared of a Labour victory, in particular, Iain Gray, and that doesn’t correspond to reality. The SNP strategy was to make Iain Gray look inadequate and play on that relentlessly and Labour, by allowing the campaign to become Salmond versus Gray, therefore had a great problem.

I think the SNP strategy was to make everything a Salmond versus Gray issue and Labour would have wanted to avoid that because Salmond had all the advantages of being someone who is the only key character in his party and has been the dominant figure for nearly all his adult life.

 Whereas it is always going to be the case for Labour that the question of leader is always going to be a more complicated issue because, as leader, you have to be relevant at a UK, Scottish and local level and no one individual will have the enormous dominance that Salmond has.

What resources did the SNP deploy?

I think resources were also relevant and one of the apparent weaknesses of the SNP is that they didn’t seem to have the ability to raise funds but this was reversed by the enormous donation of Brian Souter and went on to attract support from a few key business figures.

Labour are unable to undermine the illusion that the SNP have the support of business when the reality is their support is from quite a narrow section and Labour has the affirmation of more mainstream sections of the business community.

I think that this may be an on-going difficulty as the SNP may be able to carry on attracting support from the oligarchs or proto-oligarchic sections of the business elite and that’s going to be politically interesting as to how reliant the SNP are on some sections of the business elite that gain from deregulation and some that are effectively asset strippers.

What sections of the electorate moved over to the SNP?

A very large proportion as I’ve mentioned earlier, again something interesting is that the SNP have managed to portray themselves as having an entirely different kind of attractiveness to different sections of voters.

Scotland is the part of the UK that most resembles the UK average in almost all measurements

I think the most important element to them that Labour has to process very carefully is that the most significant part of their core electorate is men in their middle or later middle age who have done quite well. Scotland has quite a lot of people in those circumstances which historically we may not have seen in such large numbers before.

 I think the striking feature now about Scotland is that sociologically it is very like the rest of the UK in ways that it didn’t used to be, for example,  traditionally Scotland would have been seen as having  higher unemployment, greater poverty, poorer housing , a higher proportion of the workforce organised in Trade Unions and a lower proportion of upper middle class – Now Scotland is the part of the UK that most resembles the UK average in almost all measurements.

The wider aspect is that Scotland is the third wealthiest part of the UK but what is interesting is that the two parts which are more wealthy are London and the South East – and sometimes, depending on how you measure it, East Anglia – these parts are so far ahead that Scotland is at the average and all the other regions are below.

Sometimes politicians look backwards and are slow to appreciate these trends and build them into their thinking. This is due to the rise of Finance which is by far the largest employment in some parts of the country and this has to be part of the forward thinking as to how politicians respond to that.

That was the starting point, but by the end a number of sections of the electorate have moved to the SNP and that is going to be politically interesting for our strategies as the SNP will not be  able to please all of the people all of the time, and Labour will have to have a set of policies that appeals to different groups within that. There is a perception  that young people have moved to the SNP,  I am not sure that is true.

Labour’s appeal is quite high to young people and we can develop that. I think we have to also look at how we appeal to older people and to maintain our high attractiveness to female voters as thinking about what we do about the relatively prosperous middle class.

What is your take on the Labour campaign?

we should have made it clear what we would be sacrificing in order to achieve each one of our key policies

I think it would be slightly controversial in my view to say how Labour should have responded. Everybody is terribly clever with  20-20 hindsight but I think Labour have found the SNP, in this election in particular, hard to grapple with because we have not had  such a clear populism in British politics for a very long time.

Labour found it difficult to cope with someone who would outbid whatever populist policies that were there and Labour would have to ground their policies in a great depth of realism, that meant in my view that we should have made it clear what we would be sacrificing in order to achieve each one of our key policies.

We appeared to the voter to be offering the same as the SNP, that stretched the credulity of the voter, they did not think that Labour could do it. I think we would have to respond to that by making it crystal clear what we would be sacrificing for instance to get our apprenticeship program or harsher penalties for knife crime.

 I think it is interesting because Labour members have said to me why should the voters have higher expectations of Labour than the SNP and I think that is partly because Labour is the leading party in Scotland in people’s minds but also that’s a positive for Labour in as much as they expect a higher level of integrity and I think we should have built on that as well.

The SNP picked up a spectacular number of votes in the West of Scotland, what do you think was going on there?

There are  two things to say there, first of all that people who are active in politics, playing close attention to politics will see an enormous chasm between Labour and the SNP from both sides but the voters do not always appreciate that and a lot of voters see Labour and SNP as having a lot of similarities and so it means that voters will quite easily switch and I think that again is something for parties to take into account in the future.

As for the particular issues in the Clydeside area, there are two things, first of all any movement of votes was magnified because of the non-voting.  It was the low turnout that magnified any changes in voting and this  turn out is an enormous issue for all parties but especially for Labour because it tends to punish Labour disproportionately and it is quite sobering that the turnout was only 30% in some areas.

Labour will have to process carefully the fact that the candidate is very important

The other aspect would be that the SNP are moulding quite a different message in different areas and the other  parties whether they be  Scottish Socialists or the Pensioners party have introduced people to not voting Labour.

So I think that in one sense Labour feel they can rebound quite well whether it be  the Inverclyde UK Parliamentary by-election  and recent North Ayrshire by-election in local Government . These have shown that you could draw some comfort from the fact that Labour can respond and  in both those instances that Labour will have to process carefully the fact that the candidate is very important and that if the voters see both Labour and the SNP as being quite similar then that puts a big onus on the selection of candidates.

How can Labour most effectively respond to the SNP?

They have the advantages and disadvantages of a massively centralised organisation which operates in a fairly stalinoid sort of sense so they have the advantage of total loyalty, total obedience but also have the disadvantages that come with that as well –  which may come to the fore in the next wee while  …and that is one thing about Labour’s policies. They have to have policies which try to show up potential divisions within the SNP  but much more importantly divisions between the SNP and what the people of Scotland really need.

we have to be looking at these big structural issues  and that may mean striking out in quite a different direction from the SNP

In terms of policies, I think that I mentioned earlier that the SNP is a populist party but, because we have not really had the depths of populism policies in the UK politics in recent decades, people do not automatically understand what that involves. And the key thing is avoiding difficult realities by a day to day tactical response to issues.

One thing that Labour have to learn is being crystal clear with voters about some of these difficult circumstances and how the SNP are unable to provide answers to them and that even includes the big macro-economic issues of overall expenditure but also includes things like the level of house building, which is currently at the level of 1931 –  that is we are completing housing at the rate we did at the depths of the depression.

That’s shocking!

That is a really shocking fact and we just have to find ways of addressing that which are quite honest with the electorate but which give some hope for the future. …and  we have to be looking at these big structural issues  and that may mean striking out in quite a different direction from the SNP.

It may mean for example, at quite a trivial level in terms of government spending, that you have to look at prescription charges, parking charges, whatever.. as a way of trying to maintain relevance around some of the bigger issues such as housing.

And the Council Tax as well?

The Council Tax again is another thing that is not going to be seriously discussed now for a few years but if we are going to have a discussion on how we fund local services in a serious way,  in my view, that will inevitably involve a local property tax.

You mean a departure from the current Council Tax system?

No, not necessarily, but it means something  fairly similar to what there is now.

The big issue, and the debate that has to be had – is a debate about land value tax and it has to be had imminently if it is going to happen at all. What has happened so far, is that Local Income Tax is a dead duck – only some politicians support it –  it is not feasible, it is not going to happen, so we have to return again either to a Council Tax adjusted to be more progressive or something more radical such as a Land Value Tax but we have to find a stable way of supporting Local Government spending.

Do you think that the SNP gained votes around the issue of opposition to the UK nuclear weapons system?

I would think that is a very small issue in electoral terms but relevant in the sense that the SNP have a broad spectrum of things to say to different voters and it will appeal to a certain type of voter but I do not think it was a major influence on voting in May. Fairly obviously, the only powerful influence it had was in West Dunbartonshire for local reasons and in so much as it was just about the only place where the Labour vote increased.

But it is difficult to measure across the country… 

The vote in West Dunbartonshire clearly was about local jobs but I see what you mean.

So when do you anticipate that the SNP will run into budgetary difficulties?

this election …. will not succumb so easily to being all about Alex Salmond

I presume it will start with the next budget because as I understand it they are going to have two helpings of cuts in one because they managed to agree with the Conservatives last year to postpone last years cuts to help the SNP through the Scottish election and now they will have to do the catch-up.

So the first big bite will be this time round but again the SNP will try to delay it beyond the Council elections. As to how successful they are with that we will have to see but they will be trying to lay traps for all the other parties.

Increasingly it looks as if the parties other than the SNP and Labour are being squeezed out. How do you think the political landscape may look like after the May election?

I think what you are going to see is increasingly, to all intents and purposes, a two party system in an electoral system geared to a multi-party system and I think that is going make some unpredictable issues – a lot will depend on how much the width of support they have can be preserved going into that election.

I think what will be interesting is that the pattern of 3 member and 4 member council wards for each local authority might be interesting because it might be systematically 2-1 in all the threes and 2-2 in all the fours, so if you have a lot of four member wards  it might be very equal between SNP and Labour. But if you have a preponderance of three member wards you might get a very disproportionate result.

the bulk of people who join the SNP do so only because of the independence issue

So I think it is going to be interesting and the SNP  have made it clear that they are going to make an enormous effort in Glasgow to try and seize, as they would see it, the Citadel of Labour and then therefore Labour will also be campaigning very hard in Glasgow.

How that will affect across the country is not so certain. My feeling is that having been intensively involved in the last elections, that the SNP will be able to field less activists than Labour and that will be an important factor as this election is going to be fought all the way across Scotland and will not succumb so easily to being all about Alex Salmond, although the SNP may wish to try and do that.

Clearly the greater part of the Scottish population do not want full independence, so what effect do you think the referendum will have?

I presume that the SNP will be trying to avoid all discussion of the referendum because they know it is a bad thing for them. Maybe what they will try and do is speak about some sort of middle issue of more powers for Scotland or whatever, and try to make the discussion about that , but they will be  trying to avoid it being in anyway about independence.

I think maintaining a reasonable level of Corporation Tax is part of a civilised society

At that point it may become a bit divisive within the SNP, because the bulk of people who join the SNP do so only because of the independence issue. So the premise might be that we will talk about it after the local elections.

I think that within COSLA it will become increasingly important because under the four plus party system, COSLA did not take strong positions on most things because it did not have that level of unity amongst the local authorities. That very unified nature of the SNP may start to rebound a bit in terms of COSLA because the SNP councillors in lock-step with Salmond, may be unable to make the face-saving deals with the LibDems and Conservatives that have covered the cracks in the relationship between Scottish and local government.

So it might end up that quite a lot of the decisions made in COSLA will be anti-SNP positions and with quite a lot of division between local and Scottish Government in the lead up to and in the aftermath of the 2012 elections.

Suppose the referendum ends up with the Scottish Government gaining the power to set Corporation tax – how do think that will pan out?

Well, if they do then I think the UK government may, well let’s say the Tories, will know exactly what they are doing.  So suppose the setting of Corporation tax is devolved to the Scottish Government and they carry out what they say they will do, which is to lower it fairly dramatically, then I think the UK Government may rebound by cutting Corporation tax in parts of England to a lower level and that will leave Scotland losing a lot of income and not gaining the extra business they had anticipated.

Obviously I am a Labour Party supporter and I think maintaining a reasonable level of Corporation Tax is part of a civilised society and we should be trying to ensure that it is reasonably level across the developed world,  we certainly do not want to see an auction of cutting Corporation Tax further and further to the benefit of international finance and to the detriment of our electorate.

Do you think that English inner city riots will come to Scotland?

One aspect which is different is that Educational Maintenance Allowances have been retained in Scotland and I do not think that anyone has processed what that means for poorer communities, and that is a genuine difference.

the idea that new communities in the UK are forming is something the SNP have not processed at all

I think for everything else, and it would be comic if it wasn’t so serious, that people thought that Scotland could not be prone to rioting – I think we could easily see similar things happening . I do not think that we would be immune from rioting. We have more trouble focussing around things like football matches, for example, so it might happen in a different way.

One of the things I found interesting about that was the vehemence in the SNP wishing to say it was English violence rather than UK rioting and one thing to me is that it showed a lack of awareness of the changing world, because quite a lot of the population in the UK do not regard themselves as English or Scottish so, for example, there will be quite large categories of people in census listed as “Black British” or whatever and the idea that new communities in the UK are forming is something the SNP have not processed at all.

I rather like the idea of “new communities”

It is a good development but a problematic one – people do not process long term trends very easily. They do not fully appreciate the changes that have happened in the UK in the last 25 years.  I think the UK is now an enormous magnet for people and is seen as a very positive model for people across the world.

I think that a modern reforming party has to really understand that and what it involves, I mean every year a couple of Aberdeens (in terms of numbers of people) come to stay in the UK and in Scotland, the UK Government is committed to targeting a much reduced migration. In fact its net migration has grown very much with a particular impact on Scottish cities and that brings challenges but it is also appreciating the change.

And what about the countryside?

The impact of change in Scotland’s towns has been profound. The decline in town centres in Scotland I believe has been about twice the UK average probably because of the higher costs of distribution. We need imaginative responses encouraging conversion of shops to much needed residential housing.  We probably need to accept a transformation of the retail sector on which so many jobs currently rely.

Barney Crockett was interviewed by Mike Martin on 30th August 2011.

Aug 162011
 

Carlo Pandian highlights the fact we Aberdonians are fortunate with regard to latest employment figures

While the rest of Scotland suffers, Aberdeen is bucking the unemployment trend.
The Office for National Statistics released a new unemployment report this week that will no doubt trigger many a debate down the local pub.

The report highlights the national employment black-holes where job vacancies are scarce, numbers of benefit claimants are high, and opportunity is generally low.

Northern English cities and smaller Scottish and Welsh cities dominate the black hole list. Which poses the question: should job seekers in places like Hull & Motherwell be willing to up sticks and find employment in other more prosperous UK cities – or should they be grafting away in their local economies?

The good news for Aberdeen is – the city’s employment market is currently flying.

The data from the Office for National Statistics has been cross-referenced with job search engine Adzuna to show that for every 1.6 employment benefit claimants in Aberdeen, there is 1 open vacancy. “Almost” enough jobs to go around for everyone in the city!

This is in no way representative of the rest of Scotland (or the British Isles for that matter), but in these dark economic times, the oil and gas industry appears to be keeping Aberdeen alive. Demand for engineers in the city is higher than ever, and Aberdeen’s economy seems blissfully insulated from the economic turmoil other cities are experiencing.

The full set of job opportunity below can be seen in the infographic here.

 

 

Jan 282011
 

Earlier this week Aberdeen Voice readers along with Aberdeen City Council staff heard the news that 900 jobs were to go at the Council. Lesley Dunbar, Vice Chair of the Aberdeen City Branch of Unison writes.

The current administration says there is a shortfall of £3 million pounds in the costs of introducing an Early Retirement/Vountary Severance scheme again this year, and because the staff won’t take a 5% cut in their wages to pay for the ERVS scheme the current administration claims it has no alternative but to make 900 staff compulsorily redundant.

Leader of the Council John Stewart said in the local press:

“There is no alternative as Council staff being paid over £21, 000 per year have refused to accept a 5% cut in their wages”.

This proposed cut in wages was supposedly to help finance an Early Retirement/Voluntary Severance scheme (ER/VS for short).  This scheme is where staff can put themselves forward to give up their posts which are then up for consideration by management about which posts can be made redundant and therefore which people can go.

In the last two years of the so called Council ‘savings’ most, but not all, of the jobs that have gone have been under an Early Retirement Voluntary Severance Scheme, ER/VS for short.  This ER/VS schemes cost more money than compulsory redundancies and last year the Scottish Government helped to pay for some of Aberdeen City Council’s one.

Meanwhile, since last June the Council has undertaken a five year Priority Based Budget plan to try and put its financial house in order which has led to the need to offload 900 Full Time Equivalent (FTE) posts to get the books to balance.  And that’s without the plan to ‘outsource’ or privatise all of the Corporate Governance service of the Council…and more.  At the same time the Council has consulted its citizens to ask us what our priorities for services in the city are.  £150 Million pounds of savings are proposed over the next five years.

A red herring?

I believe the issue of the 5% wage cut for staff is a red herring –  a very big and political red herring. 

They claim that the unions have given them no choice

The real issue here is the loss of 900 Full time equivalent jobs and the impact of the loss of those jobs on local services and subsequently on local people and the local economy.

So what’s really at stake here?

It is not only the 900 posts that are up for grabs.  It is the future of our city – its services, our local democracy and social justice that are at stake.  The loss of 900 jobs will have a massive impact on local services and the quality of local peoples’ and their families’ lives. The cuts in pupil support alone will have a massive impact  ( See Article ‘City Council Set To Slash  Pupil support’ ).

Our Council is proposing to cut 300 FTE jobs.  That’s going to be around 400 Pupil Support Assistants jobs that are up to go.  It’s a very clear example of how cuts in jobs impact on services and then impact on all those who receive these services, in this case children.  In this situation, all school age children will be affected – not just those receiving support from Pupil Support Assistants.

So what’s really going on?

In December, Scottish Finance Minister John Swinney said that no Scottish local authority should need to make any compulsory redundancies.  Following this statement Councillor Kevin Stewart, SNP Vice Convener of the Council in the Lib Dem/ SNP coalition, proposed the 5% staff pay cut at the Council meeting.  Now with the unions rejecting the 5% pay cut the current administration says it HAS to go for 900 compulsory redundancies. They claim that the unions have given them no choice.

But some of us remember back in November, before staff were offered the 5% pay cut, unions were notified then that there would be 900 FTE posts at risk of compulsory redundancy.

The current administration also believes it needs to leave its financial reserves at the same level it inherited when it came into power  – at around  £21 Million. If they were to pay the £3 Million shortfall for ERVS then that wouldn’t happen. And when it comes to the run up to the local elections next year any opposition could say that the current administration have mismanaged the Council’s finances.  (As if…!)

now is time for us to really look at how our local government can use this power for the benefit and the wellbeing of all

I don’t need to remind readers that this is the same Council who also advocate borrowing around £150 million to pay for the shortfall in the Union Terrace Gardens scheme.

Local authorities, Social Justice and Citizens’ well-being.

Local authorities traditionally in Scotland throughout the twentieth century have had a crucial role to play in ensuring that those of us and our families, who need and rely on decent public services and who can’t afford to buy these services in the private market, receive them.

This means that local authorities have a fundamental role to play in ensuring the well being of its citizens.  This role was enshrined in legislation introduced by the Scottish Parliament in the Local Government in Scotland Act 2003 – Power to Advance Well-being.

Maybe now is time for us to really look at how our local government can use this power for the benefit and the wellbeing of all citizens in Aberdeen.

There is an Alternative

Staff have also been suggesting alternatives to management which are being ignored. These have included saving on agencies staff and expensive consultancies.  The unions have all said that our door is always open and that we are willing to meet to talk and consider any proposals that will avoid compulsory redundancies and subsequent cuts in services.  But, says Councillor John Stewart, Council staff will just have to accept the inevitable as there will be staff redundancies across all local authorities in Scotland.

I’m proud to say I belong to a union that does believe there is an alternative.

So what’s next?

JOIN US on February 10th and STAND UP FOR PUBLIC SERVICES!

Tell them what you think about their cuts to our services.

Anyone who is a citizen in Aberdeen and anyone who uses the services provided by Aberdeen City Council is welcome to come and join us at a lobby outside the Town House on Broad Street on Thursday 10 February from 12noon to 2pm before the Budget setting meeting.

I look forward to seeing Aberdeen Voice readers there on Thursday 10th.

The future is bright?

Every citizen of the city of Aberdeen, including staff have a vote and can choose how they use it at the next elections.  This won’t have escaped local councillors’ attention. And of course some of the leaders of our Council also have further political ambitions in the bigger pond of Scottish Government and have put themselves forward as candidates for the May elections…