аЯрЁБс>ўџ 8:ўџџџ7џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџьЅСq` №П $bjbjqPqP .0::ч%џџџџџџЄNNNNNNNМ”t t t 8Ќ Р PNЖр р "      ЭЯЯЯЯЯЯ$hlšѓNГ  ГГѓNN  YYYГN N ЭYГЭYYNNY д АфxAIБШt Г”YЙ0NYGЌYNY` ŠŒ аY\tау   ѓѓѓf   NГГГГPPP$t PPPt b4–"ИNNNNNNџџџџ Wendy’s Threat to the Powers of Holyrood Jim Cuthbert Margaret Cuthbert April 2008 No-one will have failed to notice that a number of Labour’s Westminster MPs are very anxious to use the opportunity of the Wendy Commission to claw back powers from Holyrood. For example, Adam Ingram was quoted as saying that he supported the establishment of the Commission for one good reason, namely, it would allow a review of the whole gamut of the Scotland Act and that the Act allowed powers to be taken back from “the irresponsible administration that currently exists in the Scottish Parliament.” In this article, we will show why handing powers back to Westminster would be precisely the wrong thing to do, given Westminster’s failure to manage its existing powers at all adequately. We give here a number of recent examples where Westminster has failed disastrously. We leave on one side the disaster of Iraq, where Westminster took us into an illegal war on the basis of spurious evidence and with no defined exit strategy. Let’s concentrate instead on our present Prime Minister’s presumed area of expertise, the economy. Gordon Brown boasts that he presided over ten years of uninterrupted growth in the UK economy: the problem is that, as we are now finding out, this was fuelled by ten years of uninterrupted credit expansion. Far from being the Iron Chancellor, Brown was in fact seduced by the City into believing that bubbles in the housing and credit market represented real and sustainable economic growth. Other than some city hedge funds, the rest of us will all be a good deal poorer by the time these toxins have worked out of the economic system. Another classic Westminster disaster has been the private finance initiative, (PFI). This was the subject of our article in the SI in October, where we pointed out that PFI could be described as “one hospital for the price of two.” Over the coming years we will struggle to pay off the massive PFI liabilities which have already been incurred. What should never be forgotten is that PFI is specifically a Westminster creation: first invented by the Tories, but then enthusiastically embraced by Gordon Brown. And then there is the question of utility pricing. There are few things more important both for the economy and for social justice, than the provision of basic utilities like water and power at reasonable but sustainable prices. However, Westminster has disastrously overseen the introduction of utility pricing models which lead to substantial overcharging and excess profits for utility companies. For example, the pricing method used for the water industry in England means that the utility companies benefit from a windfall profit every time they undertake capital investment – to the extent of approximately 40% of the value of that investment. This largely accounts for the huge dividends paid to equity holders in the privatised water industry in England, and the spate of takeovers in that industry. It is of course the customer who is funding this. Overall, Stewart Hosie neatly summarised the outcome of the UK Government’s mismanagement when he said in the House of Commons, “ The UK Government have a Ѓ581 billion cumulative deficit, Ѓ44 billion net debt, Ѓ87 billion deficit in trading goods and Ѓ189 billion liability on private finance initiative projects. The Government’s economic irresponsibility logically insists that economic powers should be immediately handed over to Holyrood.” But coming closer to Scottish domestic issues, Westminster has also been guilty of mismanagement in those areas where Westminster’s powers interface with those of the Scottish Parliament. Again, we give some examples. One example relates to the way in which Scotland receives (or fails to receive) the funding it is due from Europe under the Structural Funds programme. As we pointed out in the SI in August last year, the effect of the way Westminster has handled the structural funds meant to be coming to Scotland was that Scotland had to fund a significant part of its structural fund projects out of its own resources, by displacing other priorities within its budget. We estimated that this cost Scotland some Ѓ810 million over the period 1995 to 2005 alone. And as we pointed out, the effect of more recent Treasury changes is that Scotland is likely to end up permanently worse off as structural funds decline, compared to the position it would have been in if it had never received any structural funding at all. A second example relates to the funding of free personal care. When Free Personal Care for the elderly was introduced in Scotland, the Department of Works and Pensions refused to transfer to Scotland a sum equal to the Attendance Allowance previously received by self-funders in care homes: a sum amounting to more than Ѓ20 million per annum. This refusal was justified on the basis of DWP rules. There was however a substantial precedent, the "Boyd Loophole" case, where DWP chose to break the very same rule. So Westminster’s actions as regards Scotland in this case can only be regarded as a rather mean minded attempt to frustrate the wishes of the Scottish Parliament. A third example relates to a number of programmes which are reserved, that is, where Westminster has responsibility for the whole of the UK, but where Westminster persists in managing these programmes as if they were primarily English domestic affairs. Classic examples are Westminster’s responsibility for tourism strategy and international trade. So, given Westminster’s track record of incompetence, the last thing that should come out of the Wendy Commission is any transfer of power to Westminster from Holyrood. Having established that, however, it is still not enough just to keep and to grow powers at Holyrood. Holyrood also has to display competence in managing the powers that it has. Unfortunately, there are a good number of examples from the previous Holyrood administration where things were managed incompetently. For example, even though the regulation of the water industry is a devolved responsibility, Holyrood managed to oversee our own disaster in water pricing, which will lead, as we pointed out in our SI article of March 2006, to overcharging of water customers in Scotland by almost Ѓ1 billion. Even worse, they then rebounded from that mistake, to introduce the same flawed pricing model as used for water in England. Similarly, although the previous administration could have modified the PFI approach to public procurement, it did not: but instead pushed ahead enthusiastically with the worst features of PFI. So what conclusion do we draw from all of this? First of all, that no powers should be handed back to Westminster as a result of the Wendy Commission. But secondly, that government is a difficult art and requires Holyrood’s powers to be exercised with great care and competence. If Holyrood is going to manage this successfully, it will require much stronger support, both from a properly functioning system of Parliament scrutiny committees, and from a less supine unionist media than Scotland is currently blessed with.     PAGE  PAGE 1 )*STUVc d } }~жзитя:“”•‹t”г672wxл!€"­#Ж#х#ц#ч#ш#ъ#ы#э#ю#№#ё#ѓ#є#њ#ћ#ќ#§#њѕэхэснйебйбйЭЩйЩйЩйЩнЩХСНСЩСЙСЙЕБ­БЕІžšžšžšžšŠŠ†h­В h­В0Jjh­В0JUh^$Œjh^$ŒU h1 Ћhѕs?hыLhа3лhА6мhѕs?hј чh€ahЌwРh;еh‡2еha=џhїlЛhц'ёh1 Ћhі%Єhі%Єhі%Є5hі%Єh1 Ћ5 hыL5 h1 Ћ53)*7IUVP b d }и•p”7•?x!л!їїяяяяуууззззЫЫППППППП $„а`„аa$gd€a $„а`„аa$gd;е $„а`„аa$gdц'ё $„а`„аa$gdі%Є$a$gd1 Ћ$a$gd1 Ћч# $ўўл!ч#щ#ъ#ь#э#я#№#ђ#ѓ#ќ#§#ў# $ $ $ $ $ѓёёёёёёёёхуёхуёёѓ „ќџ„&`#$gdnOя $„а`„аa$gd€a§#ў#џ#$$$$ $ $ $ $ $ќђьђсђьнќйв h1 Ћhѕs?h^$Œh­Вh&sˆ0JmHnHu h­В0Jjh­В0JUhnOя ,1hА‚. 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