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!”

Dec 152011
 

By Bob Smith.

Listen ti the havers fae Trumpie MK 2
Oot o his mou iss wirdies did spew
Treated richt badly  an wi contempt says he
Disrespect an dishonour? Seems aat ti

Noo the windfairm folkies widna be cowed
Fin Trump an his cohorts shouted oot loud
So young Donnie he fair squeals an bawls
Seems nae aabody wints ti be their pals

Contempt, dishonour, he shud ken aboot iss
A think the young chiel is takin the piss
The fowk ower in Menie’ll be haen a cheer
Nae sympathy vote fae them ye’ll hear

Contempt an dishonour they’ve hid fae his faither
As ti oor local press the big mannie dis blether
Disrespect ti the faimilies auld Trumpie his shown
Fin he disna like the wye thingies are goin

Potty an kettle, iss wirds spring ti myn
As Donald Mk2 his teeth he dis grind
Ye haun it oot so man ye canna complain
If it cums back ti haunt ye noo an again

So greet in yer porritch Donnie ma loon
An jist dinna bither ti kick up a soon’
Fin contempt an sic like cums in bye
Jist myn o the fowk ye’ve treated iss wye

©Bob Smith “The Poetry Mannie” 2011
© Mark Rasmussen | Dreamstime.com …. 3 windmills

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 282011
 

In our final extract from Suzanne Kelly’s interview with former RGU Principal Dr David Kennedy, he describes how the community came together, in the face of serious local business opposition, to help RGIT achieve university status in 1992, how that community spirit inspired him to raise his voice against the Menie development, and how he still gets a buzz from teaching and seeing its benefits.

“At least one good thing came out of Trump”, David Kennedy is convinced, “Community spirit”.

“Twenty years ago the Government had a policy to make polytechnics into universities. Here in Scotland they decided there would be two new universities, not very good ones I may say, one in Edinburgh and one in Glasgow. These two institutions, which previously had been local authority colleges, became centrally-funded in 1985, thus enhancing their status.

“Then in 1988, Napier in Edinburgh called itself a polytechnic, followed a couple of years later by Glasgow College who renamed itself Glasgow Polytechnic.

“The older technological institutions in Aberdeen, Dundee and Paisley still retained their old names, that is, they had not called themselves polytechnics, even though they were wholly polytechnic in educational status and character, and were longstanding members of the UK committee of polytechnics. My fellow principals simply assumed that their institutions would be included in the forthcoming legislation.

“Being a suspicious person, I phoned the Scottish Office and asked if it were right that all were going to become universities, or only the titular polytechnics? The Scottish Office spokesman confirmed that only the polytechnics would become universities. I mounted a massive campaign. RGIT, with its long and proud record in higher education, had produced several times more graduates and PhD students than Edinburgh and Glasgow put together.

“Behind the scenes, Ian Wood had played a significant part in the formulation of Government policy.

“Wood was from an old fishing family. When the offshore oil industry started in Aberdeen, there were many opportunities, and several fishing companies decided they would go into the supply vessel and stand-by vessel business. Wood was quite entrepreneurial and in the right place at the right time.

“In 1986 there was a massive drop in the price of oil, and many companies just went belly up. Ian Wood had good financial backing and mopped up a number of firms going into liquidation during that massive downturn. He was the man who persuaded the Government that Aberdeen needed a world-class university and thus didn’t want RGU to become a university.

“The irony is that the current RGU chancellor is Ian Wood, the man who did his utmost to prevent RGU becoming a reality. The people of the North East supported me in my hour of need and I wanted to return the favour and support the people of Menie Estate.”

Dr Kennedy’s strict values have not always been popularly received, however. He describes a time in his own professional life where he had to survive criticism.

“In 1992, the Queen said it was her annus horribilis. The following year was mine. Practically every day the local papers had me as the controversial man. As a result of that I have never read The Press & Journal or Evening Express since. Alan Scott who is just retiring is a good friend, but they had Derek Tucker back then. When I first came to Aberdeen, Peter Watson was the editor and he was a gentleman.

“The standards in the press have gone down, as we’ve seen. I was a victim of it all in 1993. I was eventually vindicated in the courts, but as the old saying goes – ‘if you throw enough mud some will eventually stick’. I was blacklisted by officialdom.

On the subject of his own fulfilment, Dr Kennedy returns to education, his own profession for which a passion still burns 

“As it turns out, I do a lot of voluntary teaching and I am a befriender. I currently have about ten students, adults who missed out at school in English and numeracy. I suppose in a way I am a born teacher and I fulfil myself by teaching others who are in need.

“There is satisfaction in helping other people. We must be hot-wired for it, for a cooperative nature. It is infectious. It is more fulfilling than materialistic fulfilment. When I see people understanding things for the first time, that is a terrific kick for me.”

Voice, and Suzanne in particular, are grateful to Dr Kennedy for giving his time to talk with such passion and conviction about what continues to frustrate him, drive him and sustain his zest for improving the lives of others. We can be sure that this is not the last we have heard of him and wish him success in seeking a publisher for his book. It is certain to be of huge interest to all in the NE who have had their lives touched by his life in education and the community.

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.

Oct 072011
 

Teachers, Local Authority Workers, Civil Servants, Community Organisations, Pensioners, Anti Cuts Alliances and members of the general public took to the streets of Aberdeen on Saturday 1st October 2011. With thanks to Brian Carroll.

The march and rally was organised by the Educational Institute of Scotland (EIS – the largest teaching Union in Scotland) and was supported by all unions affiliated to the Aberdeen Trades Union Council.

As well as EIS Members, the march consisted of members from unions such as Unite, Unison, PCS, CWU, FBU and others.

The march also had representatives from community organisations, pensioners and members of the public taking part.

In total 2000 marched down Union Street, the main shopping street of Aberdeen which stretches for over a mile, and the pipe band leading the march gave it all they had, as did the anti-cuts organisation, Aberdeen Against Austerity, which sang some colourful songs about fighting the cuts, and placing the ConDem government on a bonfire !

Key note speaker was Susan Quinn,  National Vice President of EIS.  Along with other speakers, she denounced the actions of the ConDem government in respect of their approach to civil and public servants, services, cuts, pensions, pay, jobs and services.

Support for action on 30 November 2011 was unanimous if the ConDem government does not enter into meaningful consultation and negotiation with all civil and public service unions.

The march in Aberdeen was the biggest in the City since an anti-cuts march which took place four years ago.  The march clearly showed that strong feelings against the cuts agenda.  Opposition to the pubic sector cuts is growing, gaining momentum and getting the support of the general public as they realise that once their services are gone, they are gone forever.

This march and rally coincided with and complemented the “People First” march and rally held in Glasgow on the same day, which was organised by the STUC and supported by all affiliated Unions and where 15,000 people marched.

Sep 302011
 

With thanks to Brian Carroll – PCS Union Branch Secretary of Scottish Courts Branch and ATUC Delegate for Scottish Courts Branch.

Civil Servants, Local Authority Workers, Community Organisations, Teachers, Pensioners, Anti Cuts Alliances and the general public are taking to the streets of Aberdeen on Saturday 1st October 2011.
This march and rally has been organised by the Educational Institute of Scotland (EIS) and is being supported by all Unions affiliated to the Aberdeen Trades Union Council.

As well as EIS Members, the march will consist of members from Unions such as Unite, Unison, PCS, CWU and others. The march will also have representatives from Community Organisations, Pensioners and members of the public taking part.

Marchers will assemble at Rubislaw Terrace (Opposite Harlaw Academy) at 10.30am, and will then march down Union Street at 11am to Aberdeen Arts Centre in King Street, where a rally will be held at 12noon.

The keynote speaker is Susan Quinn, EIS National Vice President, with other speakers scheduled to attend as well.

The rally will end some time between 12.45pm and 1pm.

This march and rally is an Anti Cuts event, coinciding with and complementing the “People First” march and rally being held in Glasgow on the same day, which is organised by the STUC and supported by all affiliated Unions.

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 and put Britain back to work: therefore boosting the economy and cutting 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 and
  • get the banks working for the benefit of the country, to free up opportunities of investment. To get the banks 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 20% in the last year whilst middle and low income earners saw their income fall by at least 10%. It will fall by at least that again in the next year, if the Cuts agenda continues. Not only that, jobs and services being lost now, will be lost forever.

 

Sep 062011
 

By Mike Shepherd.

Aberdeen Council have recently noted an interest in applying for Tax Incremental Funding (TIF) from Scottish Government funds. The idea is that the Council would underwrite a loan of possibly £80M or more, £70M of which would be used to help pay for the City Square Project. The final application for funding will not be made until December, by which time a business case for TIF will have been completed.

Earlier this year, the then Council leader John Stewart, extended the remit of TIF to include city centre projects other than the city square. These are:

The City Circle Project: A walkway connecting Union Square and the railway station in a circuit from Guild Street, along Market Street through the St Nicholas Centre, down Schoolhill through the City Garden down Bridge Street and rejoining Guild Street to complete the circuit. Basically, it’s a walkway whereby shoppers in Union Square will be heavily prompted to visit the rest of the city by signs and possibly colour coding.

St Nicholas House Redevelopment: A recent council document stated this:

“In the current property market, however, the Council is concerned that developers will be unwilling to take the risk of demolishing redundant parts of the site, delaying any sale and redevelopment and resulting in a vacant city centre eyesore for a number of years. The council therefore wishes to pre-clear the site, to prepare it for sale, and bring forward development.

“The aspiration is that the tower, if not demolished, would be stripped back to its’ skeleton ready for redevelopment, and recladding and put to new uses either as a hotel, apartments or offices, and a new public square would be created to improve the setting of Marischal College and establish a focal point for a new ‘civic quarter’.”

Of interest in this statement is that the possibility of building a public square next to St. Nicholas House has been resurrected. This otherwise hasn’t been mentioned recently in council papers.

The document mentioned is the Aberdeen City Centre Redevelopment Economic Impact Assessment Information, August 2011. This provides information for a questionnaire to be answered by some 500 organisations and individuals which would provide feedback to assess the economic impact of TIF.

Denburn Valley Health Centre Development: From the same document:

“The health centre on the roof is reaching the end of its design life and NHS Grampian is looking to vacate the building. Planning guidance issued by Aberdeen City Council has called for “imaginative” development of the site using the “highest standard of design and materials to complement the surrounding urban form, listed buildings and conservation area”. Redevelopment must continue to provide for substantial public car parking on the site and is expected to comprise largely commercial space for small and medium businesses and some residential development.”

Aberdeen Art Gallery:

“Infrastructure and development required to link the Art Gallery and Cultural Quarter to the City Gardens including partial redevelopment of the gallery and creation of additional gallery space.”

The Scottish Futures Trust (SFT) are seeking six ‘pathfinder’ projects to help establish the feasibility of TIF in Scotland. Three projects have been approved (Edinburgh Waterfront Development, Ravenscraig, and the  Buchanan Quarter in Glasgow) and three more are being sought.

There is strong interest as Barry White, Chief Executive of the SFT  told me in an email last week:

“I can confirm that we have received a submission from Aberdeen City Council and will be considering it along with the submissions received from many other local authorities over the coming days.”

The Case for TIF in Aberdeen.

Tax Incremental Funding is well established in the United States and has recently been introduced to the UK. The idea is that a local authority borrows a sum of money for a development project from Government funds and that the extra business rates generated by the development is captured to pay off the loan over 25 years for instance.
It works best where a brownfield site is used to develop a large scale business operation, the revenue from which is to some extent predictable. In this instance, the risk on a council borrowing a large sum of money is mitigated by a sound business model.

The Aberdeen TIF case is largely predicated on the City Square rejuvenating business in the city centre. There would only be a small amount of revenue generated on site and this would be insufficient in itself to provide business rates to pay back a large loan. Instead, it would be hoped to capture business rates from the surrounding city centre both from rates generated by extra business and new developments.

Trying to predict how much extra business will result from a new city square will be to a major extent speculative with a large uncertainty involved.  In other words, if Aberdeen Council borrowed £80M through TIF this would be based on hope rather than certainty that the money could be paid back.

Aberdeen Council is £562M in debt according to an Evening Express report earlier this year. The interest on the debt is paid from the revenue budget and soaks up cash that could otherwise be used for service and amenities. The Council cannot afford to take a risk on being left with more debt to service, the budget is under severe strain as it is. On the other hand, I have been told that the city is so short of capital for spending that it is unlikely that there would be any investment in the city centre without TIF.

The £70M loan for a city square would be a loan too far; particularly given how unpopular the project is in the city. There is tacit recognition in the questionnaire document that the City Square Project may never happen.

“This option considers the outcome where the City Garden Project is not realisable, but the other projects are. In this scenario, economic benefit and new business rates would be generated primarily by the North Denburn Valley and St Nicholas House developments. Although likely to be less than would be the case if the City Gardens were to be realised, these two projects would nevertheless likely provide the basis for a smaller TIF.”

In this instance, Aberdeen would get a public square at St  Nicholas, which is where most people wanted it in the first place.

Jul 292011
 

Anyone visited Aberdeen  lately? Fred Wilkinson has – several times – without venturing further than his  front door. Confused?

The Aberdeen I visited is of course the Facebook community page of the same name, and I found plenty to write home about.
I was struck by the wealth and diversity of information and topics being discussed in a very friendly, mutually supportive atmosphere. No one really knows enough about their home town, and facts and figures rarely tell the real story of a place and its people.

I asked site  administrator Fiona-Jane Brown her views on why the site was set up, and what it was all about.

“It  is to celebrate the BEST of the city; also to promote local enterprise, events, community spirit etc. Also, to generate reminiscence about local history through old photos and links to archives”

It certainly provides a stimulating platform for discussion among Aberdonians and non-Aberdonians alike, and infinitely more interesting than official tourism sites.

“On my historical topics and photos people have shared loads of great memories and inspired me to create a new blog ‘QI Aberdeen’ to write fuller articles on the little gems of local history.  Local businesses with their own FB groups and web sites have started to post ads, which is great for the genuine local trader like ‘The Artist’s Pad’ which holds a prominent position in Castlegate, or Kiosque who promote local music and entertainment events.”

Would it be a useful source of information for anyone thinking of visiting the City?

“Yes, when folk post and say ‘I’m coming to visit, what do you recommend?’ the admins and the other members will happily provide info in the form of websites and suggestions.  I think students would also benefit from learning which areas of the city have suitable accommodation, where they can go out for the night, and where they can learn more about the local character.”

With news of events, photos of familiar and not so familiar features of the Granite City, interesting locally relevant facts, stories and links, and the ever popular ‘guess where’ photo discussions, visiting ‘Aberdeen’ is a hard habit to break.

Perhaps it’s greatest appeal – and 12,474 members surely can’t be wrong – is the sites capacity to offer a ‘flavour’ of life in the City. Fiona-Jane comments:

“Generally to me it represents the city itself – folk with differing views, interests, social and political backgrounds – hey, we’ve even had former council leader Kate Dean contributing to the posts about John Stewart’s resignation.

“And in any city, or any family, you don’t necessarily agree with everybody, and naturally the admins have differing interests which they like to promote.  I’d like it to stay couthy and friendly, but manage to have debate in a civil manner without discussions just turning into slanging matches.

“I’d like the group to have spin offs such as oral history projects, photographic exhibitions etc, but that’s way in the future!”

But what kind of ‘Aberdeen’ does the site offer to the world?

“An insight into Aberdonians.  The author of ‘Tenements and Sentiments’, Davie Duncan, said “The win’ may blaw thin, but Granite Chips aye survive’, meaning Aberdonians are hardy and always ready to deal with the storms of life!

“And that’s what the Aberdeen Page is – “where aa the granite chips rub thegither”, and sometimes there are sparks, and sometimes you get beautiful amazing sculptures that glitter in the sun.

“Maybe I’m a romantic, but as an Aberdonian, that’s how I like to think of my birthplace!”

Thanks very much to Fiona-Jane Brown for the interview. And so to my original question. Anyone visited ‘Aberdeen’ lately? Why not?

Here’s the link, https://www.facebook.com/pages/Aberdeen/47236254126?ref=ts

… See you there.

Jun 242011
 

“Which of our conflicting transport demands are most important?” asks Jonathan Hamilton Russell in this edit of his longer article, written to encourage debate on the future of personal and freight travel in NE Scotland.

Scotland has extremely ambitious climate change targets, yet we prioritise airport expansion and roadbuilding.

The NE economy needs transport infrastructure to allow movement of goods; people have to get to work with few holdups.

Meeting climate change targets means embracing sustainable transport usage by reducing car, road freight and air travel yet Aberdeen Airport has the fastest-growing passenger numbers in Scotland; public transport is the only option for many, but the majority are wedded to car use. Among Scottish cities Aberdeen car count is highest; Aberdeenshire has the highest rural area car usage; increasingly, Aberdeenshire residents drive to work in Aberdeen, exaggerating traffic bottlenecks.

Public spending cuts mean local and national governments face stark financial choices affecting resources for maintaining and enhancing transport infrastructures.

The days of cheap petrol have passed. Prices will continue to rise.

Bus fares are higher here than throughout Scotland.  Southbound buses are often of poor quality although local buses are of a high standard, and Aberdeen citizens, on average, are nearer bus stops than other Scottish cities’ residents.

Bus use in Aberdeenshire can be problematic, but could be increased by driving to stops and transferring to buses – less stressful than car travel. Council cuts to services for the disabled and elderly have made travelling significantly more challenging for such socially-excluded groups.

What can we do?

There’s general agreement that people should be encouraged to travel more sustainably. Cycling activity is increasing, although levels are lower than elsewhere in Scotland, and it needs to be encouraged as a healthy, environmentally-friendly activity.

Cycle pools, common in many European cities, could be created. Cycle routes to school, given priority, would provide more fun and health benefits for children than car travel. Cycle safety measures would need to be put in place, particularly at roundabouts, to make them less dangerous.

Park and ride schemes, particularly at Kingswells, are less successful than envisaged but remain a commuting option. Car-sharing, whilst becoming more common, is far from the norm. NESTRANS, responsible for planning and transport implementation, has suggested piloting car-share lanes.

Laurencekirk railway station has re-opened, but more stops are needed, possibly at Kittybrewster and Altens. The Haudagain roundabout obviously needs improving, with priority for cyclists, buses and car-sharing.

A new Bridge of Dee is needed – contribution to its cost from that area’s large retailers might have been written into the conditions when planning consent was agreed. Any new development should prioritise cycles, buses and car-sharing.

Aberdeen is a fairly small city and walking should always be marketed as a healthy, cheap and quick transport option.

Traffic lights in pedestrian high-use areas should give priority to pedestrians. 20 mph restrictions have improved safety, although limits are regularly broken by a minority of drivers.

Offering flexible working hours is effective in reducing peak-time traffic levels. Salary benefits for those cycling or car-sharing could be introduced, with car pools for staff who have to drive during  work time. Working at home, for at least part of the week, is an option as is business conferencing rather than travelling to meetings. Both would reduce business costs.

it is well-documented that increased road space leads to increased traffic

Will the increased price of petrol reduce car use enough, or do we need to introduce road pricing, viewed as the single measure most likely to effect change to how we travel? The increased motoring costs would make drivers consider alternatives.

Aberdeen would almost certainly benefit, reducing the numbers moving to Aberdeenshire as extra travel costs outweigh housing cost savings.  It is a hot potato, however, and would be unpopular due to the high levels of car use locally. Few politicians would have the courage to suggest its introduction, despite being effective in reducing car  dependency.

We also need to identify new means of financing transport developments and to maintain the current deteriorating infrastructure. Road pricing could raise those funds.

Some planning decisions have encouraged car use. Union Square adjoins both bus and rail terminals but it has also provided increased parking opportunities.

 It has had a detrimental commercial effect on Union Street, George Street and Bon Accord Centre shops, all more accessible by bus.

The proposed Union Terrace development would increase city centre car parking availability, flying in the face of the need to reduce car travel and move towards more sustainable transport methods.

All measures have advocates and opponents. The Aberdeen Western Peripheral Route (AWPR) for example, highlights conflicting views and interests.  Newton Dee Village fought an effective campaign to stop the road encroaching on that community; Road Sense has successfully raised legal objections, forcing public inquiries, even if of limited scope.

The AWPR has both advantages and disadvantages. It would help take freight off Aberdeen’s roads although significant volumes still have to come in and out of Aberdeen.

It would reduce travel times although there are other bottlenecks further south. It would reduce congestion at the Haudagain roundabout and Bridge of Dee, but it is well-documented that increased road space leads to increased traffic. Roads in general will become more congested.

The AWPR would help businesses. It will allow more people to live outside Aberdeen as it will be quicker, at least initially, to travel into Aberdeen but will lead to an increasingly-ageing city population.

Such demographic change will leave Aberdeen City Council with less money and greater demands on resources. An excellent deal has been negotiated in terms of local authorities’ contributions, with the Scottish Government meeting 82% of costs. These, however, have already escalated and impending substantial expenditure cuts will leave less money in the overall pot.

The low level of rail freight uptake is a national scandal. Road freight transport’s perceived flexibility sees it preferred.  Historically, there were conflicts with rail unions, who, however, are now keen for freight to move to rail. This will need increased public and private investment, less likely in a period of reduced public spending, although in terms of providing work and kick-starting the economy this option should not be ruled out. This also applies to the AWPR.

There would need to be contracts developed between the Freight Transport Association, the Road Haulage Association, rail companies, unions and government at all levels.

The replacement of the freight terminal by Union Square was a setback for future local rail freight capacity.

New freight facilities have been introduced at Craiginches and at Rathes Farm but this has not increased capacity. There are sea/rail links at Waterloo Quay and freight yards at Inverurie and Huntly. NESTRANS strategy states that development of new open-access freight terminals could be explored and if transferring freight to rail becomes reality, new depots would be needed.

Aberdeen harbour is an excellent freight facility and passenger transport gateway to Orkney and Shetland, with potential to expand both services. Currently five million tonnes of freight are exported through the harbour, but the loss of rail freight infrastructure in the station interchange area was a lost opportunity to link sea freight with rail.

We have to decide on our priorities.

Are we really concerned about climate change?

Can we move towards more community-based forms of travel from those currently privatised?

Do we want a more healthy society that walks and cycles more?

Can our business needs dovetail with our environmental needs?

Is it possible to think more holistically when making planning decisions?

Aberdeen Voice would welcome contributions to this debate.

Image credits:

RAILWAY JUNCTION © Davidmartyn | Dreamstime.com
CAR INTERIOR © Li Fang | Dreamstime.com
BICYCLE PARKING LOT © Chris Mccooey | Dreamstime.com
UTG DENBURN © Mike Shepherd