LP's blog

Olympics

The Olympic bill has risen by 40% since the Games were won last year and its is likely that it will go up even further. The Government must sort out this chaos at once and it needs to get a grip on all the costs and where the funding will be coming from.

One thing at a time

John Reid's tough talk when becoming home secretary has not been matched in paractice. The Home Office has missed the PM's "tipping point" targets of deported asylum seekers and 25% less people were deported in the last three months. The Home Office has been busy sorting out other matters and staff responsible for immigration was switched to deal with the issue of foreign prisoners.

Parenting centres, super nannys and databases....

The Guardian reports that the Government is creating a new database containing the details of every child in England from birth to the age of 18. It is justified on grounds of better protection and for improved coordination among different bodies. This, like the previously announced parenting schools and super nannys, is a clear example of government interferring further into our daily lives. The recent initiatives show that the Governemnt does not trust parents to bring up well-behaved children and that they believe only heavy-handed methods will help to improve behaviour and protection.

Super nanny to the rescue

First the Government announced that parents that don't read and sing for their children will be helped to do so in new parenting centres and today's (21 Nov) papers are reporting that £4 million will be spent on "super nannys" (=child psychologists) to crack down on anti-social behaviour.

Deal or no deal

The Government has interfered with the flotation of KBR, a subsidary of Halliburton, that operates the Devonport Dockyard, western Europe's largest naval port. MoD is not happy with the sell-off of KBR on grounds that it might have severe strategic/security implications. The Government has warned Halliburton that it might lose the Dockyard if the company will not delay the launch.

Nanny state

The children's minister Beverley Hughes announced today that parents that do not read and sing for their children will be helped to do so. New parenting centres will be opening from next year to give parents advice. The minister says that singing and reading will give children a "flying start" and will imporve their wellbeing and intellect. This might be true but do we really need the government to point this out and to establish such advice centres? 

"Hard-up" Defra

The Department for the Environment, Food and Rural Affairs (Defra) has underspent its budget by almost £750 million since it was formed in 2001. The Telegraph describes the deprtment as "hard-up" and mentions that due to cutting £200 million from its budget to cover the levies imposed by the EU for the late payment of agricultural subsidies, Defra has decreased spending in other areas, like coastal defence schemes.

Promoting sciences

The Government has promised £75 million to universities to prevent further closure of chemistry and physics departments. The subjects are vital to the economy but it cannot be economically viable to sustain (such expensive) courses that do not attract enough students. The Government should address the problem at schools to ensure enough students will take up these important subjects.

More on Companies Bill

The Companies Bill passed on the statute book yesterday (08 Nov) and Alistair Darling, trade and industry secretary, said that this is the end of the road for reform. However, this seems to contradict earlier comments by Margaret Hodge, industry minister. She said that the Bill is a first step in tightening statutory controls on businesses.  More rules to the already bulky law - 1,300 clauses - could not serve the Bill's purpose of deregulation and saving companies £250 million a year.

Gordon and his 8,300 pages of tax law

According to the joint report by the World Bank and PricewaterhouseCoopers (PwC) British companies have to struggle with 8,300 pages of tax law, behind only India, and  the rulebook has doubled over the last decade. This is a clear sign of Gordon Brown's preference for complexity.

The Chancellor has a tendency for making even the best and seemingly straightforward ideas so complicated that they end up in a huge mess.  Most people who would benfit from these initiatives will be faced with more bureaucracy and complex procedures that many of them will give up fighting the system to gain benefits they are entitled to. The tax credit system cannot go unmentioned in this case.  

9 to 5 only....

The BBC reports that the EU employment ministers are meeting this week to discuss the EU working hours law. As a EU rule, the current proposals are complicated - set normal hours, overall maximum hours and the option of opting out. If the proposal will be implemented, they will restrict labour markets. Liberal working hours promote economic growth and lowers unemployment. For example, the UK's economy has performed better than the heavily regulated French economy.

Packed with information

The Government begun the trial of its home information packs today although the key industry bodies have withdrawn their support. The trials are run by the home pack providers' trade association and the Government has provided £4 million of public funds as incentives to ensure their success. There is doubt the information encolsed will justify the cost and would meet its objective which is not yet quite clear. 

Turning green

David Miliband dismissed the rumours of increasing green taxes that would affect mainly middle-income families on BBC's Sunday AM (05 November). He said that any green taxes would have to be accommodated to the Government's overall approach to taxes and spending. 

It is clear that action must be taken to tackle climate change and the Government has committed itself to the fight against global warming. However, it has not yet fully revealed its strategy and seems to consider various options. Mr Miliband mentioned the importance of increasing spending on research and development. Would that mean more support to companies that develop technologies that are consistent with the Government's overall approach? But it is often the case that governments choose the least viable candidate and commit funding to failed projects.

Enrol here for workplace hazard course...

The HSE announced today (03 November 2006) the new workplace hazard awareness course and qualifications for young people. According to the the Chief Executive of HSE it is a "great example of how HSE, government and industry can work together to ensure that tomorrow's workforce has a sound basis for understanding the hazards that confront us every day at work."

Threat to privacy

The Guardian writes on its front page on how personal medical records are to be uploaded regardless of patients' wishes to a central national database which can be accessed by a huge number of NHS staff and from where the information can be made available to police and security services There is also a lack of safeguards once a patient's data is saved to the system.

Picking winners

The Department of Trade and Industry (DTI)  today announced that the Technology Strategy Board will become independent and it will take over the funding of the £178m Technology Programme next year. The new board will fund industry R&D projects, advise Government and help UK businesses to take up new innovative technologies. The DTI also announce a further £50 million funding for technology and innovation.

Good intentions?

The Financial Services Authority (FSA) has revealed that it wants to cut its "conduct of business" rulebook, which covers the advertising and marketing of financial products, and the provision of information and advice to clients, from 700 pages to 370. The news is welcomed, but somehow it has taken the FSA more than five years from its establishment to produce a first proposal for reform.

The costly and prescriptive regulation has had a damaging effect on the financial services industry and it is likely that this will stay so for some years to come. It will take at least a couple of years to implement the new proposals and it is not yet clear if they will actually improve the current situation. The FSA announced it wants to move towards principles-based framework but this could easily leave room for different interpretations and to more confusion as to what and to what extent needs to be applied to individual businesses.