Feb 232012
 

Next Friday (March 2nd) we will know the fate of Union Terrace Gardens. The results of the public referendum will be announced then. Will there be wild celebrations in the park itself or will the champagne corks be popping in the boardrooms? writes Mike Shepherd.

The Importance of Union Terrace Gardens 

I agree with the comment that in your mental map of Aberdeen, Union Terrace Gardens is at the centre of it. This observation gets right to the core of the controversy.
I’ve heard Sir Ian Wood dismiss the idea of building a civic square on the St Nicholas site. As far as he is concerned the Denburn is the heart of Aberdeen, and that’s where the civic square / garden should go.

The fate of our park will be highly symbolic for the future of Aberdeen city centre. If you agree to retain the Gardens, it’s a statement that heritage matters in the city centre and there is a will to maintain the historical nature of down-town Aberdeen.

On the other hand by agreeing to build a modern park and structure, this would probably give the green light to extensive development of the city centre. As the TIF business report for the City Garden Project states, the scheme could stimulate the establishment of a central business district and the accelerated construction of city centre office blocks.

The alternative is so much more attractive. With Jimmy Milne’s business fund we could sympathetically restore Union Terrace Gardens at a fraction of the cost. It would be a marker for preserving our city centre heritage.

The Erosion of the Character of the Granite City

My background is geology and I grew up near Rubislaw Quarry.  The geology of Scotland varies so much, it means that each town and city has its own distinctive building stone. This creates a strong sense of place and belonging unique to each part of Scotland.

I was born in Aberdeen and I love the granite buildings with a passion. It breaks my heart when one is pulled down and a concrete and glass box of no redeeming character is put in its place. I would agree with the sentiment expressed in the old Aberdeen City Plan (very tellingly omitted from the new plan that has just been approved):

“The standard of design in new development has been raised as a widespread cause for concern during the preparation of this Local Plan. This is one reason why new development can raise so much hostility amongst the public and this situation must change. The City has such a rich and relatively intact heritage of older buildings that shortcomings of newer ones are all the more obvious. It is necessary to encourage better design.”

The loss of Union Terrace Gardens could be the start of Aberdeen losing its special character as the Granite City. More and more old buildings may be lost, until the city starts to look like everywhere else. This would sadden me immensely.

A Test for Local Democracy

I also see the Union Terrace Gardens as a test case for local democracy. Despite the public referendum, local democracy has failed miserably on the issue. The development of Union Terrace Gardens was imposed on the public from the start with no serious attempt to build consensus. A so-called public consultation was run essentially as a marketing exercise, and when it failed to convince the Aberdeen public, it was conveniently ignored.

The recently held ‘public consultation’ on the design is remarkable in that the results were not even made public. Even the referendum has been lop-sided, with a massive public relations exercise on one side combined with a local press willing to publish anything it gets. There have been some new lows in recent days (see Richard Pelling’s article on the subject).

Will the public assert themselves against the machine? I hope and trust they will. If not, expect much more of the same.

A Waste of Public Money

Recently I received an email from the managing director of an oil service company in Aberdeen. He described the idea of using Central Government funds for the City Garden Project as a terrible waste of investment and infrastructure money. His opinion is that the city centre development will not affect the decision by oil companies and personnel to move to Aberdeen or otherwise.

“Companies invest in Aberdeen because of the fantastic talent pool, the high standard of living, the stable fiscal regime (assuming Osborne doesn’t have any more surprises), the access to West Africa and other merging oil & gas regions which are increasingly supported from Aberdeen.”

I agree. What is calamitous is that if Aberdeen Council was going to apply for TIF funding, they could have found much better projects than Sir Ian Wood’s city garden. How about these:

a. Revamping the Beach area

b. De-bottlenecking Aberdeen’s congested roads

c. Building the AREG renewable energy centre

 – And just about any other project you could think of.

If the City Garden Project goes ahead, we will have replaced a park with a park. Is this what we should be doing with public investment money in Aberdeen? Most certainly not.

If you agree with any of this and you haven’t voted yet; vote Retain Union Terrace Gardens (the option that does not destroy our Granite City).

Feb 172012
 

Old Susannah looks at the Granite Web, and the impressive effort it has taken to spin.

By Suzanne Kelly.

Tally Ho! Yet another vibrant and dynamic week in the Granite Web City.  Whilst Friends of Union Terrace Gardens, Aberdeen against Austerity, and Democracy Watch engaged in some inexpensive grassroots campaigning by flyer, the mysterious Vote for the CGP group pulled out all the stops and spent, spent, spent.

You could be forgiven for thinking that Northsound is playing City Garden Project commercials non-stop. The Art Gallery has a swish new display showing the Garden plan in its Alice-in-Wonderland perspective and garish colours, and issues of The Granite Web compete in the ugly stakes with the A3 VFTCGP colour flyer sent out before.

News reaches Old Susannah that visitors to Aberdeen Royal Infirmary are being cheered up no end by pro-City Garden Project posters on the walls. There is no escape at work either, as employees of Wood Group (no surprise really), Nautronix, and Taqa all seem to have received lovely e-mails from bosses hinting gently that they should vote for the CGP.

I do find it very touching that employers are looking after their employees so well and giving gentle guidance which puts no pressure on them at all.

Why do I call the VFTCGP members secret? Because I was told in so many words by the BIG Partnership, which does PR for this group and, coincidentally, the artwork for the CGP, that “if the members want to stay secret, it’s up to them.”

But before I return to my Myth-busting busting activities started last week – I only got through the first four of the ten Myths the CGP team say we’re suffering from – condolences to Rangers fans.

Was this one of the top Scottish clubs? Yes.

Will this leave a massive hole in Scottish football? Yes.

Will other sides face similar financial clubs? Looks like it.

I believe one tycoon is still paying some £60,000 of his own money each time his team plays. I do hope this mogul is not getting overly financially stretched. I’d again ask the question if Loirston Loch land – in a Special Area of Conservation – should really be turned into a 21,000 seat football ground with offices and museum in this climate.

  Donald’s granny was Scottish. This gives him good cause to call Alex Salmond ‘insane’

Well, I would ask, but the continuous concrete covering of anything green in Aberdeen seems unstoppable. Thankfully, we all have one tireless, gentle campaigner who is not giving up the fight for ‘Scotland’s heritage’. Step forward, Mr Donald Trump.

You might have seen one or two small news items saying that this gentle giant wants to build the galaxy’s greatest golf course on a no-doubt-underused stretch of coastline. He’s got rid of many of the view-blocking trees, but there are horrible plans to build windfarms offshore which could actually be seen by his guests, if you can believe that!

Now, windfarms don’t actually work very efficiently yet. The technology can, and should improve. But I guess we’re all agreed there are few things in life worse than being a rich golfer who might have to look at an offshore wind farm. For those people in favour of this kind of blot on the seascape, I would remind you that you’re forgetting something very important.

Donald’s granny was Scottish. This gives him good cause to call Alex Salmond ‘insane’ for supporting renewable energy. Please try to keep that in mind, thank you.

Finally, it might have been Valentine’s Day this week, but it looks like the May to December romance between Callum McCaig and Aileen ‘Ho’Malone is over. One of them is an over-blown, over-hyped, over-rated, naïve, headline-seeking soul, blissfully unaware that they are dangerously out of their depth. The other is Callum McCaig.

No more will they share a coalition; there will be no more romps on Tullos Hill; there will be no more late-night negotiations. Maybe yet the SNP will change its tune over the ridiculous cull of deer to plant trees that cannot possibly grow on Tullos Hill. Watch this space.

  the taxpayers’ side of this great granite garden bargain is to borrow £92m and pay the loan, and its interest, back over decades.

There is certainly a current in that direction, not least fuelled by public anger and the wasting of some £43,800 to date. Still, a break-up is hard to take. Final confirmation of this great bust-up comes in newspaper stories announcing that the coalition is still absolutely fine. I am thinking of offering my condolences to Mrs Robinson, sorry, I mean Aileen.

I’m still thinking on it. PS. Message to Irene – feel better soon!

And now back to debunking the debunking of the Myths. The City Garden Project seems to be the only entity that’s been presented with these Myths, and I commented on the first four last week. Here are a few choice words on the remaining five Myths. Thank you CGP for printing these not-at-all-wild and not-at-all-made-up Myths – we’re all really onside now. Their comments are in bold. Old Susannah’s are in regular type

5. It will cost the taxpayer millions of pounds – FALSE.

Sure. All this happens for free, and you’ve not paid a penny, and you won’t pay a penny. I wonder if the CGP forgot about the £422,000, or probably more, of taxpayers’ money Scottish Enterprise has already spent on this project? And, no doubt, our CGP friends don’t think it matters that some of your city councillors voted to set aside up to £300,000 of your money for legal costs.

Old Susannah is still mulling that one over. A billionaire is ‘giving’ Aberdeen £50m, but there isn’t enough money on his side of the fence to pay the legal costs the city will incur? So, rather than getting granny a new wheelchair, or providing 24/7 care at homes which have just announced cuts etc etc, Wood wants your £300,000. But this £722,000, nearly quarter of a million pounds, is small change.  we’re going to chop down existing, healthy trees, thus getting rid of wildlife that’s called the trees home for decades, if not centuries

Multiply that figure by ten and you get close to the amount of interest on the loan Aberdeen City Council has to sign for this project to go ahead, according to one of last night’s radio show speakers. Thanks to Original FM (on 105FM) for hosting last night’s debate. Anyway, the taxpayers’ side of this great granite garden bargain is to borrow £92m and pay the loan, and its interest, back over decades.

If the 6500 new jobs don’t come in and we don’t make £122m each year (I can’t wait to see how this happens), if we go over budget, if anything goes wrong – then it will cost us an unknown additional amount of money in repayments. The trams fiasco has reached a cost of nearly one billion pounds.

But this won’t cost you a cent. Honest, guv.

6. Fake, plastic trees – FALSE.

It’s a great Radiohead song but a lousy Myth. It has been suggested that fake plastic trees will be planted in the City Gardens to act as vents for the giant car park underneath. If any fake trees are seen they will be beside the flying pigs. 186 new trees will be planted, some of them mature and many will be Scots Pines.

Old Susannah doesn’t know where to start with this alleged Myth. She does find it reassuring to find that a job in public relations entails so much creative writing talent. I know of no-one who’s heard of plastic trees being part of the plan. However, if we’re building underground, then we’ll need plants with very tiny root systems. Goodbye 250-year old elm trees, one of only a few surviving clusters of elms free from disease, and home to wildlife. In comes progress. Who needs fresh air, wildlife, shade and beauty when you can have ramps?

   we’re going to chop down existing, healthy trees, thus getting rid of wildlife that’s called the trees home for decades, if not centuries

My favourite bit is the announcement that the trees stay in the Gardens forever, as wood chip and seating. Well, you can’t say that’s not sensitive to nature. Still, the BIG Partnership’s student placement has managed to make a meal of a non-existent plastic tree myth. Perhaps someone will explain how mature trees are going to be magically planted in the new Gardens?

Where will their roots go, as there is meant to be underground parking? How do we get to have a thriving pine forest in the city centre – something that doesn’t seem possible according to experts including local architects?

If Old Susannah has this right, we’re going to chop down existing, healthy trees, thus getting rid of wildlife that’s called the trees home for decades, if not centuries, plant some new trees, and have the world’s only pine forest in a city centre.

The pines must grow faster than genetically-modified Leylandii hedges if the drawings I’ve seen are correct, and of course, no-one can fault the accuracy of these precision drawings. I like the giant transparent child romping over the flowerbeds best. So, replacing grass and trees with grass, concrete and trees can be done for only £92m. RESULT!

7. It will cost people their jobs – FALSE.

As a result of the project a projected 6500 new jobs are to be created, not taking into account the hundreds of jobs that will come as a result of the construction. In addition, a transformed city centre will breathe new life across the city, helping us become a World Energy City long after oil and gas has run dry in the North Sea. Existing businesses will be retained meaning existing jobs will be safe-guarded.

These 6500 jobs are going to be wonderful! What will they be? Well, for openers we’ve seen how well Union Square has protected high street businesses. Our small high street shops are struggling whilst multinationals got a cheap rent deal in Union Square. But clearly what we need is….more shops. Surely there is nothing we’d rather do than shop, and you can’t have enough shops can you? It’s not as if a glut of shops will ever result in shop closures, price wars and endless sales, especially ‘Going out of business’ sales.

I wonder if there is any reason that a cafe culture has never really taken off in Aberdeen? Could it be that it’s often too cold, too windy or too rainy? Could it be because the City Council consistently refused to allow anyone to run a snack bar or coffee kiosk in the shelter of Union Terrace Gardens? Clearly not. One wave of the granite wand, and just like those convincing concept drawings, we’ll all be sitting outdoors in short-sleeved shirts, drinking decaf mocha lattes while Toto play on the brand new stage, in front of the existing indoor theatre.

Right. The taxpayer is propping up the AECC with extra money since it can’t make enough by holding events. Same for the Lemon Tree. But the new theatre won’t have any problems making a massive profit and creating loads of jobs.

 So, ‘how many theatres should a taxpayer prop up?’ is one question.

I for one can’t wait to sit through an outdoor electronic folk music competition in February. But, by winter, this theatre will be an ice rink, thereby competing with the ice rink the city tried to kill off before.

But no, there won’t be any harm to jobs. We’ll need people to cut down the trees and get rid of the wildlife. Then there will be jobs cleaning the graffiti off the Web. Yes, the Web will create more permanent jobs in small Aberdeen than the 2012 Olympics will create in Greater London. Rest as assured as I am on that point.

8. It will be entirely made from concrete – FALSE.

Obviously concrete will be used – would you like to relax, visit an exhibition or attend a concert on top of a cardboard box? The project has been carefully designed so there will be 95% more open, green space with a series of pathways providing access for people through, across and in and out of the gardens. These paths will be made of granite, crushed granite and wood.

By now, Old Susannah is finding the content of the dispelled Myths by BIG just a little bit patronising and smarmy. They thought they had to talk us out of believing in plastic trees. Now they explain that we need to sit on something more robust than a cardboard box. Thanks for that! Appreciated.

So, ‘how many theatres should a taxpayer prop up?’ is one question. ‘How many competing businesses should Scottish Enterprise suggest?’ is quite another. They used to have rules on displacement and suchlike, but these seem to have gone, probably about the same time as your employer started to tell you how to vote.

This project has been carefully designed. Of course it has. More green space, but somehow it manages to have a giant concrete, sorry, granite theatre which takes up some 15% minimum of the existing Gardens. They count the giant granite potato-crisp shaped thingy over the stage as green space.

 what if the architects were to give us some drawings showing how these ramps will work safely now rather than later?

Of course it won’t sustain any wildlife, and at best will be a thin wedge of sod over concrete, but if they want to call it green space, fine.

I guess these people call anything green space if they can colour it green with Crayolas on their paper plan.

Looking at the slope of the ramps both up and downwards, I’m wondering how the aged, infirm or wheelchair-bound are going to find this system easier than the current access. The current access could use an additional ramp and you could probably do this for less than £92m as well. For the truly baffled, there is ground level access on the north side, not far from the theatre. This is where vehicles somehow manage to get in.

Clearly there is no other way to ‘relax and visit an exhibition or attend a concert in this town.’ Let’s borrow £92 million and build this beauty.

9. There will be no railings in the Granite Web, people will fall from the paths – FALSE.

Safety will be paramount. The concept design shows the various walkways at different levels but the final design will show how these work safely. And, seriously, do you think any development in a country obsessed with health and safety would get off the ground without proper safety measures?

Our PR work placement is patronising us again. I might be old, but here’s a crazy idea – what if the architects were to give us some drawings showing how these ramps will work safely now rather than later? Are they going to be enclosed, and of course, not at all potential rat traps? Are they going to have fencing that somehow won’t look like Stalag 17? How will wheelchair users go up and down these steep ramps? Details, details.

Well, Old Susannah has run out of space for one week. We will return to normal definitions next week, and take a closer look at who is behind ‘Vote for the City Garden Project’. You will, of course, want to know what businesses are in this group, to make sure you can reward them with your custom. Or not.

Finally, many thanks to those brave business people who have stuck out their necks in favour of saving our city’s only unique, free, green garden.

That’s you, J Milne. It is appreciated.

Feb 102012
 

Old Susannah wades in with her chainsaw rattling in the direction of Union Terrace Gardens, but the elms need not fear, she is only out to cut through the misinformation presented as ‘myth busting’ by the City Garden Project.

By Suzanne Kelly.

Old Susannah has been busy with Union Terrace Gardens this past week, like so many of us.  Another few short weeks, and the people will have voted one way or the other as to whether or not our environment, heritage and common good land are better served up with concrete ramps or not.

Then I can get back to the important work of singing the praises of our elected officials, unelected quangos and council officers, and local millionaires.

Before I get down to the Gardens situation, I thought I’d look back at all the wonderful artwork that the City’s children sent in for the Christmas time art competition and event in the gardens, organised and funded in large part by the Bothwell family.

Hundreds of children sent in their artwork, and at this chilly time of the year with Christmas past, they make a cheerful reminder of a great day, and what it’s like to be a child again.  And each and every one of the childrens’ artwork exceeds by miles the A3 takaway flyer sent by a group of anonymous business people telling you we must vote for the granite web.

Do have a look – you will be glad that you did.
http://oldsusannahsjournalchildrenschristmasartwork.yolasite.com/

On with some definitions then.

Propaganda:  (noun) Material, slogans, misinformation designed to advance a particular point of view often by discrediting or ignoring opposition.

My email inbox is bursting this week with details of employers who are sending their employees all of the leaflets, letters and testimonials which support the garden project.  Most of these are written in the names of associations or groups which have – but crucially do not declare in the literature in question – a member or members who are directly involved with promoting the scheme.  This is very clever indeed.

An employee wants to be told by their boss how they should think and want and vote.  It would therefore be most unfortunate if the employees were given some way to read the many arguments against going ahead with an undefined project with an undefined budget using an as-yet untested in the UK financial borrowing mechanism with a debt-ridden city council borrowing money.

Let us hope therefore that suitable precautions are taken to prevent employees reading the literature from different groups available at the following:-
http://oldsusannahsjournal.yolasite.com/

Myth:  (noun) work of fiction, often including gods, goddesses and challenges and tasks.

Not since the rainbow bridge of Asgard joined heaven and earth, not since the legend of Hercules and his impossible labours has there been a tale as far-fetched as that of the granite web that launched 6,500 jobs and paved the streets annually with £122,000,000.  Sure, it may look more like one of the circles of Hades or the Minotaur’s maze, but the web is already passing into myth.

Those clever people who bring us this gift from the gods are worried we mortals can’t undertand the benefits, and are misunderstanding (or mythunderstanding) their benevolent intentions.  They’ve written a handy guide (something called a ‘blog’) The City Garden Project – The Myths, dispelled’ which can be found at:-
http://www.voteforcitygarden.co.uk/blog/17-the-city-garden-project-the-myths-dispelled

And to its words in bold italics, are my little responses.

The City Garden Project – The Myths, dispelled.

  • We want you to make your decision based on truth, not incorrect claims, speculation and downright nonsense!

Fine – we are all in agreement.

  • Myths have been at the heart of the campaign against the City Garden Project and if some of them were true then the opposition could be justified.

Which myths and what are they?  Where did you get them from?  I remember the initial consultation:  we were shown a beautiful, expensive colour brochure (which the taxpayer had funded) – the cover of which had a flat concrete giant square with some plants in planters.  Later on we were told the project was not going to look like the picture.  Maybe we could have saved some taxpayer money and time by waiting for a consultation and poll until such time we knew what the proponents had up their collective sleeve.  But it is not for us to question the gods.

  • But, whether by mischief-making or simply misinterpretation, the rumours have been rife.

So here we have an implication of mischief-making.  Was it the god Loki at work?  Or of the opposition being too thick to be able to ‘interpret’ what is proposed.  I have not personally heard ANY RUMOURS.  I have read serious questions about the project’s economic, ecological, sociological and regeneration benefits.

I have read people asking where the ventilation will be for underground car parking.  That is one example of the sort of criticisms and questions that I’ve experienced.  ‘Dante’s Inferno’ has a version of heaven, hell and earth without any ventilation, so I guess these miracles can happen here as well.  

  • So, let’s dispel some of these myths! 

Fantastic!  Let’s go!

1. The “green lung” of our city will be lost – FALSE. 

The City Garden will double the amount of green space in our city centre. The new “green lung” will be more usable, more accessible and brought into the sun-light. New garden areas will be created, including a colourful, blossoming area, a forest, a Learning Garden, a quiet tree-lined Bosque area with street furniture and open green space for relaxing in or having a picnic.

Patches of grass do not clean the pollutants and particulates out of a city – established, large, leafy trees do.  As the goal posts keep moving on what trees are to be lost by the City Garden Project engineers, it is hard to imagine which trees are going.

I am still very disappointed we will not have a MONOLITH at which we can make sacrifices to the gods.  I guess we’ll just have to sacrifice the trees, animals, birds, and money to these new gods instead.  But are you going to be reassured that the existing mature trees are somehow going to be replaced overnight by trees with equal pollution / C02 management capabilities by people – sorry gods – who think they can plunk a pine forest in the midst of a city centre?

Most people question where the trees’ roots will be – nearly all trees have extremely large, spreading root systems which require soil.  By the way these roots and soil are what prevents flooding.  I have read points made by experts who say it is not viable to grow a pine forest in the middle of a city centre for a number of reasons.  I don’t know the science – but I look forward to the City Garden Project team showing me examples of such cities.

  I do enjoy looking at the photos of people sitting on the concrete wedge over the ‘stage’ area which is covered with a bit of sod.

There are examples of cities with great open plazas which flood as there is insufficient soil / tree roots to absorb  heavy rains.  At least rain isn’t much of a problem here in North East Scotland.  As to bringing everything into the sunshine, err, the sun shines in the valley as it is – with the added advantage of the valley providing a very valuable wind break.

At Tullos Hill the soil matrix is very poor – which in the words of the soil report prepared by the Forestry Commission leaves any trees planted subject to ‘wind throw’.  If the roots don’t have a good firm earthy soil to hold onto, then a strong wind – like the kind that will inevitably blow across any area brought to street level – may well bring trees toppling on top of the granite web – or people.

Just by elevating a hunk of potato-chip shaped concrete and putting a few inches of sod over it, you are not creating a natural green lung/habitat/area,  even if it is the prettiest thing you’ve ever seen.  As far as doubling the space of the gardens, I do enjoy looking at the photos of people sitting on the concrete wedge over the ‘stage’ area which is covered with a bit of sod.

There is a woman sitting in a chair – a very neat trick indeed for such a steep slope.  Maybe she has a specially-constructed chair with short legs at the back and longer ones in the front?  Perhaps she is a goddess and is floating?  But as many observers point out, the ‘concept’ drawings are inconsistent in this and other ways, such as changing scale.

No, if you are losing the mature, healthy trees that are there – which are home to animals such as EU protected bats and rooks – you are indeed losing a major part of what makes the park valuable to our health.  There is no doubt of this in my mind, so I’m glad we have such a great team of pro-garden project personnel ready willing and able to explain all.  They’ve just not got round to it yet.

2. The city can’t afford the City Garden Project – FALSE.  ( Seriously? )

We have a once-in-a-lifetime opportunity to get a £182m investment in our city at NO cost to the City Council or the citizens of Aberdeen.

One way or the other, the citizen is going to pay.  IF the scheme somehow goes perfectly to plan and we have a bunch of new shops (without hurting further the existing ones) the business rates will be used to repay a loan – a loan at an unknown rate of interest on an as-yet to be determined sum.

And if it doesn’t go well, and Aberdeen gets its very own Trams project fiasco to match Edinburgh’s – the City has to find a way to pay for the TIF.  As far as the donations from private sources are concerned, at last report Sir Ian had promised to put the £50 million he pledged into his will.  Well, if I were one of his children, I’d contest the will if it ever came to that:  an ageing parent throwing £50 million on concrete webs should convince any court that something is wrong upstairs, and a will might get thrown out.

  Some say taking a loan is borrowing money.  But seems we would just be ‘unlocking’ funds – so no problem there.

But who is our mystery £5 million pound donor?  If this is a public project (debatable – the Aberdeen City  Gardens Trust is a private limited company with two people in it), then the public should know where all of the money is coming from.  If someone pledges money, what guarantee is there it will come in?  Some of our current millionaires are feeling the economic pinch, sad but true.

And if are they using this £5 million promise as a lever to tip the balance of public opinion towards the scheme  – then if they stand to gain personally, then we should be told.

I hear varying reports that other private people are pledging something like £20 million.  Now that’s a myth I’d like more info on.

Once in a lifetime?  How on earth is that conclusion reached?  That claims sounds  very much like the scaremongering the pro garden project have been accusing others of.  There are six trial TIF schemes at present.  There may well be more.  But if this were a once in a lifetime chance, then all the more reason to take our time and make a cohesive, desirable bid, perhaps even one based on something less nebulous than a scheme that has a forest one week, an ice rink the next – and so other many unknowns to it.

TIF is only in the pilot stage in Scotland – so let’s get in there first!  Test case Aberdeen!  Some say taking a loan is borrowing money.  But seems we would just be ‘unlocking’ funds – so no problem there.

A minor detail, as we’ll all be rolling in dosh in no time, but do we know the interest rates on the £182 -192 million pounds Aberdeen City Council is going to borrow?  I’ve not been told.  Over to you, City Garden Project.

Again I will say that mere mortals choose to live in an area that is clean, safe and has excellent schools and hospitals.  I must have missed the part when someone proposed to the City Council that it should cut services and schools, and replace green space and our environmental heritage for concrete.

I don’t remember agreeing to continuously expand the City’s footprint into its green space while there are so many empty buildings in the city centre.  I guess I wasn’t paying attention that day – probably got distracted by reading about a cute baby competition in the news or something.

  • 40% of the cost of the City Garden has already been secured. The Scottish Government have pledged that, if the development is supported by the public, a TIF will be used to fund the rest of the costs for the City Garden Project. 

Fine.  Let’s see the legal papers showing exactly how much has been pledged and how ironclad or otherwise these pledges are.  Forty percent?  What is the figure?  We still do not have any genuine, concrete, specific project (no timescale, no costings done, and no precise scope – these are what you learn in ‘Projects 101’ are the building blocks).  You cannot  possibly say you have 40% of the money you need for something which you don’t even have defined or costed.  Not without godlike wisdom anyway.

  • TIF is a bit like a mortgage. The cost of the “property” is £182m. The “property” is the City Centre Regeneration Scheme (Aberdeen Art Gallery, St Nicholas and North Denburn redevelopments, the new public realm and the City Garden Project). The £55m of philanthropic donations already secured for the City Garden, along with the £15m to follow from the private sector, is the deposit.   

First, please define ‘the new public realm’ for me – just so that we are all talking about one specific defined term, thanks.  I’ll bet TIF is a bit like a mortgage:  if you don’t pay up, you lose your property.  Again Aberdeen City Council are going to borrow the money via TIF.  Not Ian Wood.  Nor the private limited ‘Aberdeen City Gardens Trust Company’.

Just as well we’re told it will bring in over a hundred million a year – we’ll be needing it.

Back to the mathematics.  OK – let’s assume the £55 million is £50m of Ian Wood’s, plus the mystery philanthropist.

We should also be told who the £15 million is coming from, but leaving that aside, that’s apparently £70 million pounds.

Some people would question what kind of tax breaks if any will be given to the donors, and whether or not the tax that does not get into the treasury (because it’s being put in a hole in the ground) would be of benefit to our ever-dwindling services instead.

Right – 70 million is forty percent of 175 million.  We have just been told that the ‘cost of the property is 182 million’.  Sorry – I would have thought that the 182 million is the value of the assets, but there it is.  Just for the record: forty percent of 182 million is 72.8 million.  And just so you know, Scottish Enterprise had by May of this year spent over £420,000 on this project on consultations and PR and the like, and the City Council have just agreed to spend up to £300,000 of our money on the legal costs.

Just as well we’re told it will bring in over a hundred million a year – we’ll be needing it.  Hands up anyone who suspects this project will have many little extras here and there.  Do you think at the end of the day the estimates we are getting now (nebulous as they are) will:  a.  stay exactly the same, b.  decrease and cost less than we think, or c.  cost more?

  • The City Council takes out a loan to pay for the remainder. This loan is paid back over 25 years using the income from the new business rates raised. The City is therefore being given both the deposit and the income to pay back the loan – clever eh? That’s why TIFs are so widely used in the States and promoted in Scotland by the Government. But remember a TIF can only be used for this – not for anything else and if we don’t use our TIF, other cities will!

Well, it is indeed time for some myth- busting, because depending on who you listen to, this either is or is not a commercial venture.  TIF is supposed to be for commercial ventures – and it is unclear how anything but a commercial venture can make the millions in loan repayments we would need to make.

In fact, I seem to recall seeing a video of one of the ‘philanthropists’  saying this is ‘Not a commercial venture’.  ‘Clever eh?’  – I am not exactly convinced.  I do think risky, untested, potentially fiscally disastrous.

And overall, unnecessary to my way of thinking.  Nothing is wrong with the gardens.  We could regenerate the city’s shops by lowering our extremely high business rates.  Making more shopping spaces, eating places and entertainment venues creates more competition for the venues we have.

Did you know we as taxpayers are subsidising the AECC and the Lemon Tree – and now they want us to borrow money to build competition for these venues we’re already paying for?  It would be to my way of thinking like betting on several horses in a race.  You might win on one of them, but you will lose money.

3. The City Garden is a commercial development – FALSE

This is about creating a new civic space and gardens that will be brought back into daily use… 

(note – see definition above of ‘propaganda’)

…and become part of the daily life of the people of Aberdeen. The space will include exciting new venues for everyone to use and enjoy including a cultural and arts centre, a 500-seat black box theatre and 5,000 seat amphitheatre and stage.  

See my quotes above about these theatre/stage options.  We don’t need them.  We’re already paying for such venues.  The writer of this paper has first set out to ‘bust myths’.  However, they are lapsing into emotive, subjective prose when they say how wonderful this will all be.  We don’t know that – we don’t know anything of the kind.

But now we get to the ‘venues for everyone to use and enjoy’.  Right.  At present, we can come and go as we please when the gardens are open.  No one can prevent us from enjoying the space as we see fit – no one can charge us any fee to use the gardens.  Why?  Because they belong to each and every one of us as Common Good Land.  Are these ‘non-commercial’ theatres going  to be free of any admission charge?  If yes, then fine – they are not commercial.  If no – then they can’t make money and pay off the TIF loan.

And if they charge you money to be on your common good land, then whoever holds the deeds to the land, it is no longer common good land in reality.  Are we going to borrow millions to make a theatre that is free to go to?  If so, why don’t we just close the AECC and Lemon Tree and be done with them?

Who is responsible for joining up all these fuzzy, competing concepts – and why aren’t they actually doing it?

  • The land and all the facilities will remain in the ownership of the City of Aberdeen and its citizens.  

Oh yes, we’ll still own it – but better, wiser, richer people will control it.  You might own it – but try going to a concert for free or getting one of the 25-30 car parking spaces free.  There is every possibility that one private entity or another (why does the two-person Aberdeen City Gardens Trust spring to my mind?) will get a very long lease at a very low rate.  In terms of ownership, ‘possession is 9/10 of the law’.

4. Union Terrace Gardens will be turned into a giant car park – FALSE.

I don’t know where our friends picked up this ‘myth’  – I’ve not heard it.  But there you go.

Parking is at a premium in the city and while many people would indeed wish to see more car-parking in the centre, it will not be in the City Garden. There will be between 25 and 30 underground parking spaces to service the new development.  Old Susannah is no mathematical genius like the ones who work out our city’s budgets; but if we are putting in a 5,000 seat venue and a smaller venue in a city centre already pressured for car parking spaces, then I predict some car parking and car congestion problems.  Wild conclusion I know.

However, if there are 30 underground spaces, they will still need ventilation.  Nothing like that is shown on the plans I’ve seen yet.  But back to the maths.  If we have 5,000 people going to see a Robbie Williams tribute act in the brand new space and 30 parking spaces available at the venue, there just might be a little bit of an issue.

That nice Mr Milne (owner of Triple Kirks – soon to be developed, Chair of ACSEF, one of the anonymity-seeking businesspeople behind the beautiful Vote for the City Gardens Project…) seems to need some car parking space for his beautiful glass box offices which will be adjacent to this great ‘non-commercial’ granite web.  I guess the 30 spaces will take care of that nicely.  Either that, or there will be more than 30 spaces.  A lot more.

As I posted on Facebook this week, it comes down to these points (leaving out the environmental carnage and the Common Good Status, that is):

  • 1. Is TIF a tried and tested financial model in the UK? Not yet.
  • 2. Do we know exactly what this project will cost? No – because the scope is unknown and ever-changing. That is one of the main flaws with Edinburgh’s trams scheme – it kept changing – and now we are looking at nearly one billion cost for it.
  • 3. Is the design fully fleshed out enough for anyone who supports it to fully explain the engineering (vents, how will trees – esp. pines grow, how will ramps be made safe, etc)? No.
  • 4. As the taxpayer is already propping up entertainment venues with tax money, venues that cannot survive without financial aid, does it make any financial sense to create venues to compete with them? No.

So – if you’re not sure about any of these points  – and who is? – then maybe we should not rush into anything.

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!”

Jan 062012
 

Over three years ago, Sir Ian Wood announced the City Square Project with the intention of replacing Union Terrace Gardens with “a cross between the Grand Italian Piazza and a mini Central Park.” It has since been renamed the City Garden Project. The cost of building the project is nominally £140 million, of which it has been proposed that £70M of this would be borrowed by Aberdeen City Council involving a tax scheme.  Mike Shepherd offers some analysis of current local government trends, the recession, and what it may mean for Aberdeen.

So what is the justification being put forward for this expensive project, a project that has caused so much controversy since it was announced?

The project’s supporters allege the City Garden Project is needed to ensure that Aberdeen is attractive enough to retain energy professionals long term and to ensure Aberdeen’s economy is based on tourism post-oil.

For instance, an advert by ACSEF in the Press and Journal (January 2010) stated that:-

“Creating a new heart for Aberdeen presents a unique opportunity to put the city on the ‘must visit’ list.”

 Aberdeen City Council is £562 million in debt (2010 figure).
See:
http://www.scotland.gov.uk/Publications/2011/02/21143624/4

Last November, Perth and Kinross Council approved demolishing the listed Perth Town Hall to build a Civic Square in its place, a move that has raised much controversy.  The BBC reported:

“The council said many local businesses supported the civic square proposal. And council officers have argued that full demolition and reuse of the site as a public space would provide the most additional value to the local economy.  The cost of scheme is estimated at £4.4m, but the report said an additional 15,000 people per year would extend their stay in the city, with an extra 60,000 coming for events. “This would result in a combined additional spend per person per visit of £23 generating a total gross expenditure of £1.65m per annum,” it added.
See:
http://www.bbc.co.uk/news/uk-scotland-tayside-central-15742937

Perth and Kinross Council is £222 Million in debt (2010 figure).

A similar controversy has been raging in Cork, Ireland, where the struggling Cork Council has been involved in a plan to install the Sky Garden Project. Celebrity TV gardener Diarmuid Gavin’s Irish Sky Garden won the gold medal at the Chelsea Flower Show (It looks like a giant hanging flower basket).

  There is a pattern here. Local governments the world over are in serious debt

The Council agreed to put the garden on permanent display in the city’s Fitzgerald Park at a cost of at least €300,000, with more than €1.7 million given to the project by Fáilte Ireland, the Irish tourism body.

In tones, redolent of the Aberdeen controversy, the Irish Independent wrote:

“THE taxpayer could be hit with a further bill of over €100,000 in costs connected to Diarmuid Gavin’s award-winning garden.

“Workers’ Party councillor Ted Tynan said the council needed to clarify precisely how much the garden cost, and what the council would pay in transport, insurance and operating costs. He also expressed disbelief that the garden — including its 30-metre high floating ‘pod’ and crane — may only open for three months each year.

“I love gardens and flowers and parks, but this is absolutely ridiculous. You’d put a hell of a lot of flower beds around the city for this kind of money. We should keep our feet on the ground not in the clouds with a sky garden’,” Mr Tynan said

“There are 500 boarded-up council houses in Cork and 120 people with various disabilities waiting on home adaptations. But the funding to go to all this has been cut by central government,” he added.

“Last night, the council said support for the “iconic garden” was in line with the policy that led to the creation of successful visitor attractions in the city.”

“This is part of a long-term policy to create a necklace of top tourist attractions that will bring people to Cork, get them to stay longer here and spend more money here,” a council spokesman said.

“Fáilte Ireland insisted that the garden would generate significant tourism earnings.”

See: http://www.independent.ie/national-news/diarmuid-gavinrsquos-euro2m-lsquosky-gardenrsquo-growing-in-cost-2661548.html

There is a pattern here. Local governments the world over are in serious debt. Services and amenities are being cut, yet it doesn’t stop them from spending money on expensive big-ticket items that might bring visitors in.  There is a feedback loop between local government, chambers of commerce and national government that serves to create the syndrome, “if we build it, they will come”.

  While a worthy cause, this has caused controversy as the annual budget will be part-funded by the city’s Common Good Fund

Where local economies have failed as in Cork for example, tourism may be the last throw of the dice to engender outside income.  There will be much competition for the dwindling number of international tourists as the recession bites. Recent reports suggest that countries such as Greece and Spain will focus relentlessly on promoting tourism as the last glimmer of light in their busted economies.

Aberdeen has caught up on the trend of pushing long-term tourism. The local chamber of commerce have been promoting a new destination marketing organisation for the city called ‘Visit Aberdeen’.

While a worthy cause, this has caused controversy as the annual budget will be part-funded by the city’s Common Good Fund; £107,000 for 2011 / 2012 and potentially for the next six years also. Arguably this is more ‘commerce good’ than ‘common good’.

The draft business plan recognises the future of the City Garden Project / Union Terrace Gardens as a primary issue. It is to be hoped that an organisation part-funded by Common Good money will not be promoting the controversial development of a public park that lies on Common Good land.
See: http://committees.aberdeencity.gov.uk/mgConvert2PDF.aspx?ID=15678

Are the citizens of Aberdeen willing to support the allocation of scarce resources to “a build it and they might come” vision for the city, allowing a public park to be developed for the sake of possible future tourists? Or is this all pie in the sky stuff that will use up money desperately needed elsewhere and will result in the appearance of the Granite City changing forever?

You have the chance to decide yourself.  The referendum on the fate of Union Terrace Gardens will be held in February.

 

 

 

 

 

Dec 292011
 

By Mike Shepherd.

The jury for the City Garden Project will announce the final scheme for the proposed development of Union Terrace Gardens sometime in January.  The choice will be between two designs, one with a web-based motif and the other with a big glass building in the middle which looks like a giant worm.

It is clear from both designs that most of the existing trees will be removed to build the new ‘garden’, whichever is built. 

New trees could of course be planted, but it would be decades before these grew to a comparable size, and this may not even be possible in those areas with a shallow concrete substrate. There will be claims that some of the smaller trees could be replanted, although the practicalities of this are obvious.

The big trees are particularly important as they absorb carbon and filter more pollution from the air compared to smaller trees. One study concluded that for this purpose:

“Big trees, the ones the Victorians planted for us, are what we need to maintain, but they are few and far between.”
See: http://www.theecologist.org

This week saw the shocking news that people living in Scottish cities are being exposed to dangerously high levels of pollutants. A WWF Scotland report identified three pollution hotspots in Aberdeen; Union Street, Market Street, and Wellington Road. These show  levels that are in breach of EU targets intended to protect human health. The main problem is the high levels of nitrogen dioxide caused by traffic fumes.
See: http://www.pressandjournal.co.uk

Aberdeen has a highly-polluted city centre. The solution to the problem would be to reduce the level of traffic in the city centre; pedestrianising Union Street has been suggested as an option.

It is also clear that we need to maintain the tree population of the city centre to help absorb the pollution. The key areas are Bon Accord Gardens, St. Nicholas churchyard and Union Terrace Gardens itself. Otherwise, Aberdeen city centre can hardly be described as awash with trees.

Yet, the proposed City Garden Project will remove a population of mature trees from the city centre. The problem is acknowledged in the Technical Feasibility Study for the project.

“Removal of mature trees and existing ecological habitat; 78 mature trees would be lost including 17 number mature Elm trees. The ecological value of these trees would take decades to replace as many of the trees are up to 200 years old.”

The City Garden Project will itself be a major source of pollution while it is being built (for the duration of almost two and a half years according to the same study).

“Excavation of rock/earth; It is anticipated that 30,000m3 of earth and 35,000m3 of granite will need to be removed from site. This which will cause large environmental impacts from noise, dust, transport and energy use. The removal of this volume of material is equivalent to approximately 3,947 dump trucks of earth and 4,605 dump trucks or more of granite to be removed from site or re-used where possible on site. This would have large environmental and social impacts on the local area and community surrounding the gardens.”
See:  
http://www.acsef.co.uk

It is clear from this, that the ecological downside of building the City Garden Project is substantial. The construction phase will see a protracted period of dirt and pollution in the city centre. By contrast, it is no exaggeration to describe Union Terrace Gardens as the green, living heart of the Granite City; its big trees acting as a natural washing machine, helping to keep us healthy by removing noxious pollution.

Those living in Aberdeen City will receive a postal ballot in mid February allowing them to decide between retaining Union Terrace Gardens or sanctioning the construction of the City Garden Project.

I will vote to retain Union Terrace Gardens.

Nov 232011
 

Aberdeen Trades Union Council, (ATUC) in conjunction with Scotland Against Racism, Aberdeen Anti Cuts alliances and anti-privatisation organisations, are backing a St Andrews Day anti-racism and anti-cuts march and rally in Aberdeen on Saturday 26 November 2011. With thanks to Brian Carroll.

Speakers from anti-racist organisations, trade unions and community groups will raise awareness of the fight against racism in Scotland and highlight the need to support diversity, equality and respect. The event is supported by all trade unions and ATUC-affiliated organisations and will see participation by representatives from community organisations and pensioners as well as members of the public.

The underlying anti-cuts theme will emphasise how cuts breed racism.

John Connon of Unison urged those who feel strongly about these issues to turn out to show their support.

“In a multi-cultural region like NE Scotland, it is vital that cuts being imposed locally and nationally are not used as an excuse to scapegoat minorities working hard alongside indigenous workers. Events like this can help this understanding and focus our efforts on opposing the cuts and those responsible for making them.”

The Aberdeen gathering coincides with and complements the STUC anti-racist event being held in Glasgow on the same day, supported by all affiliated trade unions.

There will be colour, banners, flags and bands to brighten up Union Street for a while on a cold November Saturday morning and the organisers are hoping to attract as many marchers as possible to celebrate diversity and equality in Aberdeen.

Marchers will assemble at St Nicholas Churchyard at 1100 and will march along Union Street at 1130 to Castlegate for a rally at 12 noon.
The rally will end between 1230 and 1300.

Oct 212011
 

Joshua Upton reports on a special tour run by Aberdeen against Austerity.

Scandalous! Outrageous! Unbelievable!

Just some of the cries that shook Aberdeen on Saturday, the day of Global Revolution.

Well, when I say shook, I mean lightly rattled. And when I say the whole of Aberdeen, I mean the staff of Topshop Union Street Branch.

But while not the PR coup Aberdeen Against Austerity may have been hoping for, their actions on Saturday 15th October certainly turned a large number of heads. Well, when I say a large number…

Back to the beginning. While cars burn, banks are attacked and protests bring hundreds of entire cities to a halt in 82 countries world wide, Apathetic Aberdeen had its own version of the Global Revolution – A guided tour of Union Street.

‘A guided tour of Union Street?’ I hear you say, ‘Hardly worth mention’. Ah, but this was a special tour, run by those rabble-rousers at Aberdeen Against Austerity. Instead of showing the hidden beauty of Aberdeen, the Scoundrels and Scallywags tour of Aberdeen was dedicated to revealing the underbelly of corporate Aberdeen, and aimed to highlight tax avoidance and other nefarious deeds by Aberdeen’s financial elite.

The tour began outside the St. Nicholas centre, with the initial target on the hit list being M & S.

Yes, M & S. The true good food we all know and love is not as good as we thought. A whole 19.08% of companies owned by the Marks and Spencer Group are located in tax havens.

What’s more, workers in an Indian Marks and Spencer Group factory were getting paid as little a 26p per hour to make M & S clothes in 2010, well below international standards. This opening salvo of information turned a few heads outside, and some stopped to listen to the tour, however most people’s attention was soaked up by the band playing a few metres away.

This leg of the tour caused a bit of a fuss, with the tour being expelled from the building and the police being called

Stop number two was an obvious one to say the least, Topshop. It is part of the Arcadia Group, which also owns Topman, BHS, Burton and Dorothy Perkins, to name but a few. The Group is run and administered by CEO Sir Philip Green, but is owned by his wife and sole shareholder, Tina Green.

As Tina is a resident of Monaco, Tina and Philip are able to minimize UK tax through this tax avoidance scheme. This leg of the tour caused a bit of a fuss, with the tour being expelled from the building and the police being called, but we’ll get to that later.

Crossing back across the street, the tour arrived at RBS Union Street Branch.

The Taxpayer’s generous donation of 24 billion to the banks in the form of bailout money was mentioned – which equates to £400 from every man, woman and child in the country. And then the issue of RBS’ £25 billion tax avoidance schemes was raised. But then again, they are bankers, so not much of that should really come as a surprise, and no passers-by seemed surprised either.

Numero cuatro on the tour was Vodaphone, the scoundrels who have spent the last decade fighting doggedly  to avoid paying tax, with the sum so far coming up to 6 billion in unpaid tax. But Mr Osborne is a nice guy, and so let them off with not paying ANY of their unpaid tax.

In fact, he’s SO nice that he decided to give Vodaphone a few of the top jobs as governmental advisors. Can you guess which department? That’s right, In tax.

The next stop was by far the most eventful part of the tour. First, while walking to the Barclays branch on Union Street, it was noticed that someone was following the group, which it was then noted was the security guard from Topshop.

It seems he had become a vigilante in the last 15 minutes and decided to ‘protect’ the whole of Union Street from this band of roving ‘Anarchists’; truly he is a hero of Aberdeen, although he eventually got bored and started talking to the security in HMV.

But yet more eventfulness occurred during the talk on Barclays (who, as well as being bankers – an instant sign of being a Scallywag – Barclays have a particularly nasty portfolio that includes both food speculation and a £7.3 billion investment in the arms trade sector, the largest global share) when, you guessed it again, the po-po turned up.  Forgive the terminology, I don’t usually belittle the police, most just do their jobs, but what happened here can only really be called harassment.

Watch out Hidden Aberdeen Tours, you may soon find yourselves blacklisted as enemies of the state.  

While discussing the evils committed by Barclays, three police officers approached the group, apparently Topshop had lodged a complaint that the tour was being a nuisance, quite a feat seeing as the group was now about two hundred metres away.

The officers repeatedly asked for information and details from members of the group, which was refused each and every time, as they had no right to ask. They kept asking who was in charge, to which it was explained that no one was. And they kept referring to the tour as a protest.

Watch out Hidden Aberdeen Tours, you may soon find yourselves blacklisted as enemies of the state.

After the conclusion of the Barclays talk, and the departure of the police officers, the tour continued on its final leg with two concluding pieces on Union Terrace Gardens, Sir Ian Wood, and the mischievous dealings of Woodgroup PLC, mainly along the lines of tax avoidance (although not confirmed, it is believed that 26% of his companies are located in tax havens and he has skimped on paying his employer National Insurance contributions) and the false generosity of Sir Wood’s £50 million to the Union Terrance Gardens Refurbishment.

Seeing as he already owes that money to the government in taxes, its not really a gift. It’s like giving an old lady £20 after you assault and mug her of the same £20 the week before.

In all, while the Scoundrels and Scallywags tour of Aberdeen may not have had the same impact of the Rome protests, and it may not be as daring as the current Wall Street and St Paul’s occupations, it was an important step for Aberdeen.

People’s attention is being grabbed by the imaginative campaigns being carried out by Aberdeen Against Austerity, local doers of corporate evil are becoming more concerned about popular opposition, and it was one of the best attended actions to date.

Oct 212011
 

Last week Chicho Sanchez  spent a few days analysing the data from the recently published report on tax havens by ActionAid UK. Here he shares his findings with Voice readers.

The figures, published in the Guardian, show that 98% of the FTSE100 have subsidiary companies in tax havens.

While this is not illegal and is not directly an admission of tax avoidance, it gives us a glimpse behind the thick curtain of big business and has confirmed to many their suspicions about multi-national corporations.

However, during those few days I began to realise something else…that the claim “Capitalism creates more choice than ever before[1]” is an illusion.

It is an Illusion of Choice.

I began to map out where the FTSE100 were operating in Aberdeen and how often we, as members of the public, come into contact with companies from the index. Parent Companies are in red and in brackets.

Carola is visiting Aberdeen for the weekend.

She arrives on the P&O (Carnival Group) Ferry from the Islands  She is staying at the Premier Inn (Whitbread Plc) on North West Street opposite the Lemon Tree. She had looked at the Holiday Inn (Intercontinental Hotels Group) on Chapel Street but it was full. In the morning, she goes to the centre to via the Bon Accord and St. Nicholas Centres (50% Land Securities Group – 50% British Land plc). She stops in the Bon Accord Centre for a coffee at Costa Coffee (Whitbread Plc) and checks her emails on her (Vodafone) mobile phone using the wi-fi perhaps provided by (BT).

As she strolls through the St. Nicholas centre (50% Land Securities Group – 50% British Land plc) she stops to look at the clothes in the window of Next (Next Group). She leaves and stops in WHSmiths (FTSE250) to buy a Financial Times (Pearson Plc) and a copy of ‘A Tale of Two Cities’ published by Penguin (Pearson Plc) for some bed time reading.

It’s a typical day in Aberdeen. Cold and wet, Carola vows to stay indoors as much as possible. She hears about the new Union Square Shopping Centre (Hammerson Plc) and decides to visit the attraction. There she finds Marks and Spencers (Marks and Spencer Group) selling all manner of goods.  After a while she heads back to Union Street where she withdraws money from the Barclays (Barclays Bank Plc) cash machine on Union Street .

Feeling the beginnings of a head cold coming on she makes her way to Boots where she buys some Nurofen (Reckitt Benckiser), some Strepsils (Reckitt Benckiser), Beechams (Glaxosmithklein) and a bottle of Lucozade (Glaxosmithklein) for energy. She wonders across to Union Terrace Gardens where she meets a group of protesters conducting a tour of the city’s underbelly. She joins the tour and learns of Ian Wood’s (John Wood Group Plc) ‘vision’ for the Gardens. She leaves at the end of the tour and heads back to her warm hotel for a rest. The energy for the hotel might be provided by SSE (formerly Scottish and Southern Energy).

Before bed she has a Grolsch (SabMiller Plc) in the bar and a cigarette containing Golden Virginia Tobacco (Imperial Tobacco) rolled in Rizla papers (Imperial Tobacco). She has a quick shower and washes her hair with the L’Oreal (Bottled by Rexam Plc) shampoo she bought at the Airport and dries herself with a towel perhaps washed in Vanish (Reckitt Benckiser). Feeling clean and happy she hits the hay.

Brenda is a mother who works part time for Tesco (Tesco Plc). She has 4 children and lives in Garthdee. Her Husband George works for (BP) in Dyce. On Tuesday afternoons she goes to Sainsburys (J Sainsburys Plc) next to B&Q (Kingfisher Plc). Her shopping list is as follows –

Food and Drinks

Blue Dragon Stir Fry Sauce (Associated British Foods Plc)
Jordans Cereals (Associated British Foods Plc)
Kingsmill Bread (Associated British Foods Plc)
Ovaltine (Associated British Foods Plc)
Patak’s Curry Sauce (Associated British Foods Plc)
Ryvita (Associated British Foods Plc)
Silver Spoon Sugar (Associated British Foods Plc)
Nambarrie Tea (Associated British Foods Plc)
Guiness (Diageo)
Lagavulin Whisky (Diageo)
Smirnoff Vodka (Diageo)
Blossom Hill Wine (Diageo)
Ben and Jerry’s Ice Cream (Unilever)
Vienetta (Unilever)
Hellman’s Mayonnaise (Unilever)
Flora margarine (Unilever)
Knorr Stock Cubes (Unilever)
Marmite (Unilever)
Pot Noodles (Unilever)
Slim Fast (Unilever)
Peperami (Unilever)

Household Goods

Air Wick (Reckitt Benckiser)
CillitBANG (Reckitt Benckiser)
Clearasil (Reckitt Benckiser)
Dettol (Reckitt Benckiser)
Durex (Reckitt Benckiser)
E45 cream (Reckitt Benckiser)
Finish washing powder (Reckitt Benckiser)
Gaviscon (Reckitt Benckiser)
Nurofen (Reckitt Benckiser)
Brylcreem hair product (Unilever)
Dove Soap (Unilever)
Impulse Deodorant (Unilever)
Lynx Deodorant (Unilever)
Radox Bath Soap (Unilever)
Timotei Shampoo (Unilever)
Vaseline (Unilever)

On leaving Sainsburys she stops at the Kiosk to buy George’s magazines. He likes The Economist(50% owned by Pearson Plc) and the New Scientist (Reed Elsevier). She buys their weekly nicotine ration in the form of Lambert and Butler (Imperial Tobacco) and Windsor Blue (Imperial Tobacco) and drives home.

It’s an Illusion.

Whatever is bought in the mainstream world is bought from the FTSE100, the DAX, the Dow Jones, the Nikkei 225 etc…There is no real choice under the current economic system.

This economic system is based on exploitation of humans, ecocide, and perpetual inequality. It is broken and it is time we looked at building a society without private property and hierarchy (not possessions like houses, tools etc. but estates, reservoirs, intellectual property and the like) based on equality, tolerance, justice and participatory democracy.

Attached is a breakdown of the FTSE100 companies present in Aberdeen and the number of Subsidiaries each maintains in tax havens.
https://aberdeenvoice.com/2010/10/companies-present-in-aberdeen-tax-havens/ 

Source – 1 http://listverse.com/2010/12/24/top-10-greatest-benefits-of-capitalism/

Image Credits:
GEOMETRIC RAINBOW PATTERN BACKGROUND 1 WALLPAPER © Nlizer | Dreamstime.com
GO TOWARDS THE LIGHT! © Kirsty Pargeter | Dreamstime.com 

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.