╨╧рб▒с>■  ■                                                                                                                                                                                                                                                                                                                                                                                                                                                   Root Entryo<Pр         └F└И┼╧>Q╟А;╗Q╟└oWordDocument       o]PрAР*CompObj Ф°bC╪$K             j:SummaryInformation(            ь¤   ■                                                                           ■   ■                   ■    !"#$%&'()*+,-./01                                                                                                                                                                                                                                                                                                                        osoft Word for Windows 95@в╥.@╞вЄ╢Q╟@Юг╬>Q╟@┤┴ ║Q╟XП■ ╒═╒Ь.УЧ+,∙о0╪HPt|Д МФ ЬфDell Computer Corporation@ff #Mismanagement: the Need for Change■       └FMicrosoft Word Document MSWordDocWord.Document.6Ї9▓q■ рЕЯЄ∙OhлС+'│┘0╝Ша╠╪Ї  8D l x Д РЬдм┤ф#Mismanagement: the Need for Change@Preferred CustomerNormalPreferred Customer5MicrRoot Entryo<Pр         └F└И┼╧>Q╟А;╗Q╟└oWordDocument       o]PрAР*CompObj Ф°bC╪$K             j:SummaryInformation(            ь        ■   ¤    ■       ■   2                                                                                    3■                                                                                                                                                                                                                                                                                                                   ▄еhcр $et*Ў"И"И#####ш#N#Ъш#ш#ш#ш# Є# ш#7)1№#№#№#№#№#№#№#№#б$г$г$г$=р$Ъz&Ъ(h)X└)Z2(#№#№#№#№#№#2(Z$##№#№#Z$Z$Z$№#^#№##№#б$А;╗Q╟#,#"####№#б$Z$GZ$Mismanagement: the Need for Change So how stands Scotland after 300 years of the Union Dividend? A country where, in many of our old industrial areas, the physical environment, and the body language of the population are reminiscent of the more depressing parts of Eastern Europe - on a bad day. Where, in our major conurbation, Glasgow, % of working age men are either unemployed or claiming incapacity benefit. Where our population bumps along at just over 5 million- and declines remorselessly relative to England: from x% of the UK in - to y% today. Unionists, of course, use indicators like these to frighten us away from change: implying that Scotland is somehow fundamentally weak, and we would be even worse off without the union. Of course, this is nonsense. What the current state of Scotland shows is that Scotland has been chronically mismanaged under the union. Here, we list some of the ways in which this has happened. Our selection is not meant to be comprehensive: this is very much a personal listing, heavily based on the areas in which we have done research, relating to public finances and the economy. Others, whose primary interests lie in the fields of cultural affairs or social policy could come up with equally damning but quite different selections. Those who are interested in detailed evidence on many of the points in our list below can find it in the papers on our website www.cuthbert1.pwp.blueyonder.co.uk. We have grouped our points under a number of different headings but it is clear that some points could be considered under several of the headings. Economic mismanagement 1. In a monetary union, as is the UK, the single interest rate will not suit all areas - unless areas can compensate by significant variations in their tax rates, particularly business tax rates. Gordon Brown recognises this perfectly well in the EU context, where he wants every country to have the right to set its own tax rates. His position within the UK is completely inconsistent, however, where he, like every other unionist Chancellor has rigidly set his face against any variation of business tax rates within the UK. This has been a major contributory factor to ScotlandТs long run economic under-performance. 2. Another compensating mechanism for areas like Scotland, (and Ireland), within the EU are the European structural fund programmes. Ireland has indeed used these to great effect. But in Scotland, unionist governments have ensured that only a fraction of the EU transfers came to Scotland. The additional funding coming to Scotland under EU structural funds has only represented the Barnett formula consequences of structural funds allocated to England. The substantial difference between what the Scottish budget should have got from Europe and what it did get through these Barnett consequentials has had to be found out of a rearrangement of the ScotlandТs existing budget. 3. In Scottish Enterprise, successive governments have handicapped the Agency by failing to distinguish a clear enough remit. While Scotland needs economic development the agencyТs limited resources are also spread over support for business and community development. 4. Many of the key economic development levers are UK wide, run by departments such as DTI. There has been a tendency to design such schemes primarily with English needs in mind. 5. Successful economic development would require reserved functions to be tailored to ScotlandТs needs. There have been few attempts to accomplish this. In particular, measures to help people back into work and social security benefits are run by UK departments. 6. There has been a failure to use regulatory levers. For example, Scotland has its own regulator in the key area of water, but he has been given no instructions to take account of economic development factors. 7. The current government at Holyrood has been much worse, even than its Tory predecessors, in defending Scottish companies from takeover. This is despite the fine rhetoric of Jack McConnell who, in 2005, said УA company headquartered in Scotland is more likely to be a long term player in our economy and help us retain our best talent by offering highly skilled and well paid jobs.Ф Damaging Scottish Confidence 1. A prime example is the governmentТs annual GERS exercise. We leave aside the still uncorrected, and significant, errors in GERS. But note how Union spokespersons, with scarcely concealed glee, use GERS in an attempt to show that Scotland is incapable of managing without the rest of the UK and indeed benefits in the form of handouts from the Уunion dividendФ. They are trying to show that Scotland is fundamentally and structurally weak. This emphasis diverts their own attention from trying to manage Scotland better. Failure to Champion Scotland 1. Scotland, under its present management has failed to get representation at EuropeТs top table. A recently leaked memo from a senior official in the Scottish ExecutiveТs European office complains that Whitehall departments routinely ignore the views of the Executive when dealing with European issues with disastrous effects on Executive policy. Far from being part of a strong team, Scottish ministers are left sitting in an ante room, barred from attending talks. 2. ScotlandТs Labour Westminster MPs often fail to identify ScotlandТs interests and act accordingly. They follow the Party whip to introduce policies in England which are detrimental to finances in Scotland, for example, the introduction of top up fees at Universities and Foundation hospitals, both of which policies will have adverse Barnett consequentials for the Scottish budget. Pursuing Policies which Damage Scotland 1. Examples are (a) the Private Finance Initiative, where, typically one can end up paying five or six times over the life time of the contract for the investment raised. And (b) the introduction of a charging regime for water, based on current cost accounting, which will lead to very significant overcharging and the likely privatisation of the industry. Incompetence Examples are (a) the mistakes made in estimating how much it would cost to introduce free personal care for the elderly, together with the failure to develop an adequate monitoring system to assess how much the policy is actually costing. The upshot is poor financial control of this flagship policy which has inevitably resulted in some of the most vulnerable people in our society having to queue for the service. (b) the errors made in the introduction of a new system of financial control for the water industry, which led to customers being overcharged by approaching г600 million in total in the period 2002-06. The government happily pocketed a large part of this as a new form of taxation. дГ.е╚Aжзиайак Jim Cuthbert Margaret Cuthbert.24.5our population was almost a fifth of the size of England#7 M ~Ыз╞Cл╖tЛЩЪлп┬рчИ"┤"╡"╒"╓"э"#■№№№№№·■■■···u^UБ■    ■    ■                                                                                                                                                                                                                                                                                                                                                                                                                                                                       wwws"01BCsw+>\cПmn0 P ┼ ыьїЎQPЛQЩQЪP" P#QлQSQпQ┬QрQИ"P*Q┤"P Q╡"Q╩ PCQ╒"PjPs1РTimes New Roman РSymbol &РArial"qИ╨h}▓ЖиВ▓жv?мГd[;g$Z"Mismanagement: the Need for ChangePreferred CustomerPreferred CustomerDocumentSummaryInformation8                                                 #$mг7 N ║ _l '№}~Ыий╞ЪDкл╕rstМЩ¤·їїї·······z ·z ·z ·z ·z ·z ·z ·z ·z ·z ·z ·z ·z ·z · z ·z ·z ¤z Єz 7K@ё Normala c"A@Є б"Default Paragraph Font@TOC 1a Тs in 1801, but is just above a tenth today.,which Scotland was due actually :дГ.е╚AжзиайакдГ.е╚AжзиайакЎэ"             в ?Ў╡#0CD╥Ь│ с ю в їЎz z z z  z z z z z  z z z z z z #Щsx▄уИ Ц  3<[huГ°GPreferred Customer1C:\My Documents\Scotland\Mismanagement 150207.doc @HP DeskJet 870C SeriesLPT1:HPRDJC03HP DeskJet 870C SeriesHP DeskJet 870C Series7Ф А d,,HP DeskJet 870C SeriesLPT1│ ░ ,,HP DeskJet 870C Series7Ф А d,,HP DeskJet 870C SeriesLPT1│ ░ ▄еhcр et*Ў"И"Иэ"э"э"э"э"╤#7#Ъ╤#╤#╤#╤# █# ╤# )1х#х#х#х#х#х#х#х#К$М$М$М$=╔$Ъc&Ъ¤'Q)Xй)Z(э"х#х#х#х#х#(C$э"э"х#х#C$C$C$х#^э"х#э"х#К$bбю╢Q╟##"э"э"э"э"х#К$C$GC$Mismanagement: the Need for Change So how stands Scotland after 300 years of the Union Dividend? A country where, in many of our old industrial areas, the physical environment, and the body language of the population are reminiscent of the more depressing parts of Eastern Europe - on a bad day. Where, in our major conurbation, Glasgow, % of working age men are either unemployed or claiming incapacity benefit. Where our population bumps along at just over 5 million- and declines remorselessly relative to England: from x% of the UK in - to y% today. Unionists, of course, use indicators like these to frighten us away from change: implying that Scotland is somehow fundamentally weak, and we would be even worse off without the union. Of course, this is nonsense. What the current state of Scotland shows is that Scotland has been chronically mismanaged under the union. Here, we list some of the ways in which this has happened. Our selection is not meant to be comprehensive: this is very much a personal listing, heavily based on the areas in which we have done research, relating to public finances and the economy. Others, whose primary interests lie in the fields of cultural affairs or social policy could come up with equally damning but quite different selections. Those who are interested in detailed evidence on many of the points in our list below can find it in the papers on our website www.cuthbert1.pwp.blueyonder.co.uk. We have grouped our points under a number of different headings but it is clear that some points could be considered under several of the headings. Economic mismanagement 1. In a monetary union, as is the UK, the single interest rate will not suit all areas - unless areas can compensate by significant variations in their tax rates, particularly business tax rates. Gordon Brown recognises this perfectly well in the EU context, where he wants every country to have the right to set its own tax rates. His position within the UK is completely inconsistent, however, where he, like every other unionist Chancellor has rigidly set his face against any variation of business tax rates within the UK. This has been a major contributory factor to ScotlandТs long run economic under-performance. 2. Another compensating mechanism for areas like Scotland, (and Ireland), within the EU are the European structural fund programmes. Ireland has indeed used these to great effect. But in Scotland, unionist governments have ensured that only a fraction of the EU transfers came to Scotland. The additional funding coming to Scotland under EU structural funds has only represented the Barnett formula consequences of structural funds allocated to England. The substantial difference between what the Scottish budget should have got from Europe and what it did get through these Barnett consequentials has had to be found out of a rearrangement of the ScotlandТs existing budget. 3. In Scottish Enterprise, successive governments have handicapped the Agency by failing to distinguish a clear enough remit. While Scotland needs economic development the agencyТs limited resources are also spread over support for business and community development. 4. Many of the key economic development levers are UK wide, run by departments such as DTI. There has been a tendency to design such schemes primarily with English needs in mind. 5. Successful economic development would require reserved functions to be tailored to ScotlandТs needs. There have been few attempts to accomplish this. In particular, measures to help people back into work and social security benefits are run by UK departments. 6. There has been a failure to use regulatory levers. For example, Scotland has its own regulator in the key area of water, but he has been given no instructions to take account of economic development factors. 7. The current government at Holyrood has been much worse, even than its Tory predecessors, in defending Scottish companies from takeover. This is despite the fine rhetoric of Jack McConnell who, in 2005, said УA company headquartered in Scotland is more likely to be a long term player in our economy and help us retain our best talent by offering highly skilled and well paid jobs.Ф Damaging Scottish Confidence 1. A prime example is the governmentТs annual GERS exercise. We leave aside the still uncorrected, and significant, errors in GERS. But note how Union spokespersons, with scarcely concealed glee, use GERS in an attempt to show that Scotland is incapable of managing without the rest of the UK and indeed benefits in the form of handouts from the Уunion dividendФ. They are trying to show that Scotland is fundamentally and structurally weak. This emphasis diverts their own attention from trying to manage Scotland better. Failure to Champion Scotland 1. Scotland, under its present management has failed to get representation at EuropeТs top table. A recently leaked memo from a senior official in the Scottish ExecutiveТs European office complains that Whitehall departments routinely ignore the views of the Executive when dealing with European issues with disastrous effects on Executive policy. Far from being part of a strong team, Scottish ministers are left sitting in an ante room, barred from attending talks. 2. ScotlandТs Labour Westminster MPs often fail to identify ScotlandТs interests and act accordingly. They follow the Party whip to introduce policies in England which are detrimental to finances in Scotland, for example, the introduction of top up fees at Universities and Foundation hospitals, both of which policies will have adverse Barnett consequentials for the Scottish budget. Pursuing Policies which Damage Scotland 1. Examples are (a) the Private Finance Initiative, where, typically one can end up paying five or six times over the life time of the contract for the investment raised. And (b) the introduction of a charging regime for water, based on current cost accounting, which will lead to very significant overcharging and the likely privatisation of the industry. Incompetence Examples are (a) the mistakes made in estimating how much it would cost to introduce free personal care for the elderly, together with the failure to develop an adequate monitoring system to assess how much the policy is actually costing. The upshot is poor financial control of this flagship policy which has inevitably resulted in some of the most vulnerable people in our society having to queue for the service. (b) the errors made in the introduction of a new system of financial control for the water industry, which led to customers being overcharged by approaching г600 million in total in the period 2002-06. The government happily pocketed a large part of this as a new form of taxation. дГ.е╚Aжзиайак Jim Cuthbert Margaret Cuthbert.24.5our population was almost a fifth of the size of England#7 M ~Ыз╞Cл╖tЛЩЪлп┬рчИ"┤"╡"╒"╓"э"■№№№№№·■■■··u^UБ#$mг7 N ║ _l '№}~Ыий╞ЪDкл╕rstМЩ¤·їїї·······z ·z ·z ·z ·z ·z ·z ·z ·z ·z ·z ·z ·z ·z · z ·z ·z ¤z Єz 7K@ё Normala c"A@Є б"Default Paragraph Font@TOC 1a Тs in 1801, but is just above a tenth today.,which Scotland was due actually :дГ.е╚AжзиайакЎ╓"             в ?Ў╡#0CD╥Ь│ с ю в їЎz z z z  z z z z z  z z z z z z э"Щsx▄уИ Ц  3<[huГ°GPreferred Customer1C:\My Documents\Scotland\Mismanagement 150207.doc @HP DeskJet 870C SeriesLPT1:HPRDJC03HP DeskJet 870C SeriesHP DeskJet 870C Series7Ф А d,,HP DeskJet 870C SeriesLPT1│ ░ ,,HP DeskJet 870C Series7Ф А d,,HP DeskJet 870C SeriesLPT1│ ░ ,,А,,Аww╨╨ws"01BCsw+>\cПmn0 P ┼ ыьїЎQPЛQЩQЪP" P#QлQSQпQ┬QрQИ"P*Q┤"P Q╡"Q╩ PCQ╒"PjPs1РTimes New Roman РSymbol &РArial"qК╨h}▓Ж╩В▓жйВ▓ж{XПГfXПf$Z"Mismanagement: the Need for ChangePreferred CustomerPreferred Customer