Transport: April 2009 Archives

bridgetonowhere.jpgAlso on a additional Forth crossing theme, while watching some BBC coverage of the SNP conference I heard a couple of very bizarre comments.

First, the BBC appear oblivious to the fact that there's any opposition to the scheme. Their reporter said (about a sixth through that long clip):

".. that would have a big impact on projects like the new Forth Road Bridge. Everyone agrees it's key to Scotland's economic prosperity, but Westminster and Holyrood have locked horns over how it should be paid for."

Er, no. They don't all agree. Here are just some of those opposed to the scheme. And even the City of Edinburgh Council, led by the SNP and the Liberals, has come out against.

Next, more disingenuously, the clip includes this section from Shirley-Anne Somerville's speech to SNP conference, discussing borrowing powers:

"It's about building Scotland's future, and that includes the Forth Crossing. It is of strategic importance to the Scottish economy, not just of Fife and the Lothians, not just to the east of Scotland, but to our whole country. No other country would have a debate about whether this bridge should be built or not, it is so important."

So, let me get this straight. A democratic politician doesn't think there should be a public debate about £2,300m - £4,200m of public spending? Even though it's supposedly to replace a bridge which is still operational and which is currently estimated to cost £122m, absolute tops, to fix? That's logic which would appeal to Kim Jong-Il.

Unfortunately for the likes of Shirley-Anne and other regular opponents of public transport, there is a debate, and it's not going away. 

On one side of it is a cynical attempt by the SNP and the other parties here at Holyrood to fish for votes in Fife, cynical because they've misled local people into believing that the new bridge is necessary and won't cause massive cuts in public transport expenditure, that it won't cause massive disruption during construction, and that it won't blow carbon reductions out of the water. 

On the other side are the local residents, radical environmentalists like the National Trust and RSPB, SERA (Labour's environmental ginger group), the transport campaigners, and the Scottish Green Party.

If this bridge does get built, which I doubt, it's not going to be plain sailing for its unquestioning supporters. It's going to be a hard battle, and it's one we'll fight all the way.

New nuts please.

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One of the things I missed while on holiday last week was this excellent Boyling Point cartoon. The tide would truly turn if the Evening News joins the City of Edinburgh Council's opposition. Thanks to Lawrence for the spot.


The money-go-round.

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Monbiot returns to form today with a scathing piece about Labour's PFI scheme to widen the M25. The way this £5bn-sized slice of insanity works appears to be as follows: as usual, the Government pretends to externalise the risk to a consortium, but in this case it then lends them £400m of the £1,300m required to build the project. 

£500m more comes from European taxpayers via the European Investment Bank, and the remainder is being loaned by the Royal Bank of Scotland (i.e. us) and then underwritten by the Treasury (i.e. us again).

The contracts are also so long and so perverse that if some future government actually tried to reduce our dependence on oil, we taxpayers would then have to compensate the PFI consortium for the reduced traffic. It's hard to imagine a more incompetent and venal financial scheme, and all for a project which is as useless as the second Forth Road Bridge itself.

Remember this next time Labour complain that the SNP have abandoned PFI. And also remember that John Swinney has admitted that the Scottish Futures Trust is from the same family.

Nate Silver from 538 has an interesting and related piece on General Motors, their pension plans and their relationship with the unions. Between the 1950s and the 1980s they made some very generous retirement benefit deals with their employees, deals which weren't even on their balance sheets until 1992. Now those deals are paying out, and the company is on the verge of bankruptcy.

"This issue is wrongly portrayed by both the liberal and the conservative media as one of management versus labor, when really it is a battle between General Motors past and General Motors present. In the 50s, 60s and 70s, everyone benefited: GM and its shareholders got the benefit of higher profit margins, and meanwhile, its employees benefited from GM's willingness to cut a bad deal -- for every dollar they were giving up in salary, those employees were getting a dollar and change back in retirement benefits. But now, everyone is hurting." (thanks, Aaron)

PFI and the SFT work on a similar basis. The Labour and SNP approaches to public spending are not about making savings, they're a battle between current Ministers on one side, keen to deliver shiny photo-ops transport projects but not to pay for them, and on the other side, future taxpayers, who neither government seems to give a monkey's about. Future Ministers are, to a lesser extent, losing out: they will have less money to spend on public services while having to tax harder to get there. 

In 2030 those taxpayers will find themselves still paying for shabby hospitals long pulled down and roads schemes which sit unloved and barely used as we (hopefully) make that transition to a low carbon economy. Meanwhile the architects of their problems - Brown, Swinney, Major and the like - will all be retired and writing volume four of their memoirs. 

Perhaps we can surcharge them and reclaim a bit of our money from their advances. It won't cover the bills they're leaving behind, but it'll make us feel a lot better about it all.

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About this Archive

This page is a archive of entries in the Transport category from April 2009.

Transport: March 2009 is the previous archive.

Transport: July 2009 is the next archive.