Online column April (3)

Written by Malcolm Bruce MP on Thu 24th Apr 2008

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10p tax rate - where were Labour and Tories?

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Parliament returned this week after a two week recess (that totally failed to overlap with our school holidays) during which I was able to make a number of visits across the constituency.

MPs' return was dominated by the row in the Labour Government over the ending of the 10 pence tax rate. This was astonishing given that the decision to end it was taken a year ago.

At that time only the Liberal Democrats flagged it up. Ming Campbell, our leader at then time, spoke on it in his speech commenting on the Budget and Liberal Democrats forced a vote against it.

The Conservatives abstained and Labour members supported the Government. Only now, under pressure from low income earners hit by the predictable unfairness of the change and the threat to their seats are disaffected Labour MPs teaming up with the Tories to confront the Government.

It is a sorry comment on New Labour that the Chancellor and Prime Minster are maintaining that they will not give in to pressures having just capitulated to the richest people in the country over capital gains tax. I do not favour soaking the rich but I am in favour of a fair and progressive tax system rather than one that overburdens those on low incomes.

I have long called for a system that raises the threshold at which people start paying tax. Right now it is only the Liberal Democrats who are championing that.

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Thanks frae the member fae Auchterturra

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I was delighted to be invited to the celebration of the conferral of the freedom of the City of Aberdeen on Scotland the What? I arrived on the North East in 1971 (an inabootcomer) just as the trio where at the start of their great run.

Of course, as we were reminded, their partnership started at the University and what was to be their final outing at the Edinburgh Fringe became the start of more than 25 years of hilarious entertainment.

For me it drew me into the character of Aberdeen and the North East the richness of the Doric and its understated humour.

Having over the years been privileged to represent Turriff, Huntly, Keith, Rhynie, Clatt and Wartle I suppose in their world I might be the Member for Auchterturra wi' Clatt.

When I was first elected I found myself writing letters on behalf of constituents to 'Buff' Hardie who was then secretary to the Hospital Board. I became a regular attendee at their shows at His Majesty's but also managed to see them twice in London among an appreciative but sometimes mystified audience.

Last year I was also privileged to be seated beside Steve Robertson when he was the guest speaker at Books Abroad's 25 anniversary ball and thoroughly enjoyed his company and the entertainment he provided.

Buff's son continues the tradition (and what an image of his father) in Flying Pigs. In response to their thank you from the familiar boards of His Majesty's I can only respond by saying; "George Donald, Steve Robertson and Buff Hardie, thanks for the memories and (as it says in the official language of their freedom scrolls) above all for 'makin a'body laugh'."

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Going backwards on the by-pass and A90

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No Government can do everything expected of them and certainly cannot do it all at once but I am deeply disappointed that our key transport needs are going backwards in terms of start and completion.

The last administration in Edinburgh had set a timetable for the Western Peripheral Route and the dual carriageway on the A90 between Tipperty and Balmedie of 2010. The Western Peripheral Route was then put back to 2011.

However both these projects have been delayed by the administration to 2012 for the A90 and 2013 for the Western Peripheral Route. These are serious slippages.

Major infrastructure projects always take time both in terms of planning and public enquiries and then in tendering and construction. However, this delay looks much more like constraints on the budget as the administration tries to fulfil too many uncosted promises it can't now afford.

Business and commuters north and west of Aberdeen will be seriously affected by this delay and as housing development continues congestion will increase.

Ministers were keen to announce the appointment of reporters for the preliminary hearing for a public enquiry claiming that people will be pleased they are getting on with the by-pass.

They are less keen to advertise the fact that under the SNP the date for the completion of the by-pass and the Balmedie - Tipperty dual carriageway has slipped two to three years

That makes the lack of any commitment to a commuter rail service even more disappointing. Literally, thousands of people commute each day between Inverurie and Kintore and Aberdeen and it is hard to believe that a commuter rail service would not be well used.

It would also reduce pollution and congestion and offers environmental benefits. Yet the administration has shown no appetite for bringing it forward.

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Garioch swimmers deserve a pool

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Visiting Inverurie Academy this week I was bombarded with questions on a wide range of topics. What was clear is that young swimmers in the Garioch are keen to see the building of a 50 metre pool in the North East.

Naturally, those of us who have been campaigning for an Olympic pool for the North East for years welcome the news of a contribution from some branch of the Scottish Government.

What is a little puzzling is the Scottish Sports Minister has been unclear and fairly unsupportive. Yet, last week the first minister appeared in an exclusive (i.e. managed news) on the front page of one of our local daily papers clutching a sheaf of used tenners 'for the pool'.

With the more than £5million put aside by the City Council, support from the University and possible support from other institutions, including Aberdeenshire Council, we are well on the way to realising a proper Olympic Pool - in time, I hope for the run up to the London Olympics in 2012.

Credit for this should go to those dedicated swimmers and their coaches who have campaigned for years first to persuade the City Council to give a lead and then to produce swimming performances that show we have swimmers of real class who deserve facilities to match.

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We need to work together for fairer funding

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The funding crisis affecting Aberdeen City reinforces the need for a fairer long term settlement for both are local councils. Finding £27million of savings out of the current year's budget is clearly painful and controversial.

However it is also true that the City has the lowest funding settlement in Scotland and has had to meet the high cost of single status which should have been resolved years ago and was imposed but not funded by Government. Social work budgets have also risen way above inflation. Clearly the city has had to take action.

Aberdeenshire is not unaffected having to impose two per cent cuts across the board and finding its settlement has reduced from 92% of the Scottish average to 88%.

So why is it that two of the richest areas of Scotland suffer the tightest financial settlement?

The main reason is that funding for local authorities comes from council tax (frozen this year) and Government grants which are more generously applied to other authorities.

Our businesses pay their rates to Edinburgh not to Aberdeen or Aberdeenshire as they did before the Tories established a national business rate. Almost certainly much of this - possibly tens of millions of pounds a year -is being diverted elsewhere.

With high employment and above average pay (although not for everyone) we also pay above average income tax to central government and most of that we never see again.

Yet our need for services is at least as great as elsewhere and the cost of providing them in many cases higher because of distance and a relative small population base.

Whatever the formula is based on it does not seem to fit the needs of the North East.

We need to go a lot further than replacing the council tax with a local income tax, which the Scottish Parliament probably cannot do on the existing settlement.

We need business taxes to be paid directly to the local authorities and more of personal taxes paid locally to stay locally with a matching reduction in the level of tax raised by the Exchequer.

In the long run we need local taxes for local services.

In the meantime we need a fairer settlement for the North East and all our political parties locally should get together to fight for that. Otherwise, these crisis will recur and not just in the City.