September Column

Written by Malcolm Bruce MP on Fri 26th Sep 2008

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Tax cuts to help struggling families

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Calling for tax cuts

We are in the middle of the party conference season and I enjoyed a visit to the Liberal Democrats' annual gathering at Bournemouth. I chaired or spoke at several fringe meetings, addressed the conference on the situation in Georgia and on the collapse of the Doha trade round.

I also had useful meetings relevant to my role as Chairman of the International Development Committee and on behalf of constituency interests over the extension of rural broadband and failing airlines.

The conference was noteworthy for its commitment to radical tax cuts for low and middle income groups which has already led to some increased support for the party.

We have been working on this review for some time but the timing of its launch is very appropriate at a time when families are struggling with soaring food and fuel bills and uncertainty over jobs and mortgages.

As a party we backed higher taxes in the past to fund investment in public services but these have been massively boosted and what is needed now is to spend effectively and to enable people to make more of their own choices with their own money.

So the party backed a plan to cut income tax from 20 to 16 pence in the pound paid mostly by ending tax breaks for the very rich and partly from taxes on high polluters. In addition, Nick Clegg our party leader has challenged his shadow cabinet with finding an extra £20 billion of savings in spending across Government.

As someone who was charged in the last Parliament with identifying savings by abolishing the Department of Trade and Industry I am sure it can be done. I also believe in these difficult times Governments should show they are capable of drawing back just as every family has to.

Our Scottish leader, Tavish Scott has brought the challenge straight home by calling on the Scottish Parliament to take a lead and use the powers it has to cut taxes by 2p in the pound. In past years there have been underspends greater than that. This should liven up the debate and votes on the Scottish budget.

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HBOS collapse and takeover in hand and out of our control?

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The collapse of Halifax/Bank of Scotland has shocked people across the country and will have serious repercussions. You don't have to look far around our area to see the overlap of HBOS and Lloyds TSB branches.

Assurances have been given about the new group's Scottish Headquarters in Edinburgh. Sadly, that is all it will be a 'Scottish' Headquarters as the real control drifts even further south than it did with the creation of HBOS.

HBOS

It is also apparent that this merger has been in the offing for some time and may have come about anyway. The credit crunch and speculation against mortgage lenders may have merely accelerated it and made any counter campaign unrealisable.

It is ironic that it is the mortgage dimension i.e. the Halifax component that made HBOS vulnerable given at the time of that merger the strong mortgage base was quoted as a strength.

I am not much impressed by the political spats that suggest it was all speculation, that only the UK could save it or that an independent Scotland could have made a difference.

If Scotland is to be player at all in the international financial services sector and not just serving our small domestic needs then the regulation and common practices will be determined outside our borders. We need to help shape them but we could not dictate our own and remain competitive.

In the meantime I feel concerned for people working for these institutions in our High Streets who have not caused the problems but may be its victims. I will do what I can to help those that approach me.

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Time to help independent travellers

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The economic downturn and fear and uncertainty that go with it may have started in financial services but leaches into other sectors.

Help for Travelers

As the collapse of XL and Alitalia has shown airlines are particularly exposed and it is predicted that many more will fold.

I have been concerned for some time that many people booking their travel accommodation independently may believe they are covered by IATA, ATOL or ABTA schemes when, in fact, they are not.

Some years ago I supported the case for independent travellers to be covered. Sadly the Government resisted it believing there were consumer or competition compromises.

ABTA are continuing to lobby the Government in the hope it may be more prepared to listen in the present climate.

I will certainly be asking the Government whether it will now consider ABTA's proposals for a £1 levy on flights booked independently. ABTA say this would provide enough funds to enable the industry to reimburse people and/or bring them home.

I appreciate that some people who have had the foresight to insure their travel may feel they are being charged twice but it seems a small price to pay to ensure an end to the stories of travellers abandoned at airports or resorts far from home and out of money.

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Yellow school buses part of the answer

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The latest tragic death of a school pupil killed by a car after getting off a school bus has reignited the campaign for North American style yellow school buses.

I have supported such campaigns in the past and even introduced a private members bill to require them for the UK but they have been resisted by successive Governments.

Campaign for Safer School Buses

Of course, dedicated buses are an expensive charge on the education budget although this can be reduced if they are used for other community purposes outside school needs.

Also, simply having yellow buses and banning overtaking does not of itself reduce the sad statistics of death and injury which are still an issue in Canada and the USA.

On our narrow, windy, country roads it may be that drivers often find the only chance to overtake is when the buses stop.

So if we are to make changes it will require a cultural shift in behaviour of drivers in cars and buses and pupils.

In the meantime a safety campaign might make people think twice about overtaking and encourage pupils not to attempt to cross the road until after the bus has moved off and visibility has been improved.

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Structure plan needs to deliver more sustainable communities

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Consultation on the draft structure plan for the Aberdeen City and Shire strategic planning authority has closed and no doubt over the coming months the implications will become more widely known and debated.

I am pleased that the plan envisages new schools, the Aberdeen Western Peripheral Route and rail improvements all vital to the people of Gordon. For those in the east of the constituency whether living in the shire or the City I welcome the commitment to a new crossing over the Don.

As a campaigner for improved sports facilities I also welcome the commitment to a community stadium.

I know the City Council are determined to overcome their present difficulties which have their origins dating back to the last reorganisation and the consistent underfunding of the North East (which I notice the SNP have not offered to do anything about).

It is easy for people to call on the council to abandon plans for sports and leisure facilities or for the move to Marischal College but I believe this would prejudice the future. In any case all attempts to get the private sector to redevelop Marischal College have failed. It is an iconic building and in the circumstances it seems appropriate for the City Council to restore it and use it. The alternative is a semi-derelict eyesore and no advert for the City - and, of course, it allows for the disappearance of St Nicholas House - Hallelujah!

Meanwhile we need to balance development between the city and shire towns and rural areas to reduce travelling and make economic activity more sustainable. It is certainly true that Inverurie, for example, is becoming a more self supporting community every year. Other towns should be helped to move in that direction rather than being just commuter bases.