Mid-April Column

Written by Malcolm Bruce on Wed 22nd Apr 2009

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Appreciated offshore workers need assurance

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The memorial service for those who lost their lives in the Super Puma crash on April 1 was a fitting tribute to the men and their families and a reminder of the journey that thousands of offshore workers make every week to and from oil and gas rigs and platforms.

I sometimes think that the rest of the country does not fully appreciate the nature of the challenge in the North Sea. The decision to ground the AS333L2 and EC225LP - the Super Puma models in the two most recent incidents - is indicative of the anxiety felt right across the industry and the concern that no clear explanation of the failure has been identified.

This affects 25 helicopters and will clearly affect North Sea operations and lead to delays. Safety must be paramount. I was being asked whether I called for the grounding of the aircraft and my response was that this was a matter for the technical experts at the air Accident Investigation Branch. Somewhat belatedly they have come to that conclusion.

Transfer by sea is not a realistic or safe option which makes getting to the bottom of the most recent disaster absolutely vital.

If we are to maximise the potential long term production from our continental shelf we need not only maximum safety of operations but appreciation of the challenging environment offshore workers operate in and how hard won is the resource.

The Government appears to be slowly recognising that recovery of remaining hydrocarbons will be more challenging and more expensive. It is, nevertheless essential to our economy giving us longer term security, reinforcing our skills base and sustaining a vital export industry.

The tax regime should encourage this and recognise the costs of maintaining safety.

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Kintore station should be good start for Crossrail

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The campaign to re-open Kintore station and eventually secure a commuter rail service between Inverurie and Stonehaven (at least) has been ongoing for some time.

I have raised it with ministers, launched petitions and consulted local people. I am surprised at the costs mentioned and believe it can be done within a reasonable budget - certainly a fraction of the cost of the Western Peripheral Route.

Nevertheless it seem both Transport Scotland and Stuart Stephenson are extremely conservative in their traffic forecasts and therefore disparaging of the business case.

Experience locally and elsewhere suggests that a new station generates more traffic than expected. This was certainly true after Dyce station re-opened and when service frequency increased between Stonehaven and Aberdeen. More recently the re-opening of the Alloa line produced three times the passengers forecast.

Discussions I have held suggests that Kintore could be re-opened as a stand alone project but to get a real benefit to the environment and transport options we need upgrading across the whole Aberdeen to Inverness line and new rolling stock.

The question for ministers in can they find the political will and ambition to turn long term aspirations into reality. Re-opening Kintore would be good start.

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Crisis budget result of Tory and Labour profligacy

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The Budget no doubt presents an opportunity for the Government to claim it is planning for recovery and for the Tories to denounce the debt and attribute blame.

Nevertheless, it seems fair to me to recognise that the place we are in is the result of the cumulative policies of both parties over the past 25 years I have been in Parliament.

The Conservatives sold off the family silver, de-mutualised successful financial services companies, maintained political control over interest rates and enforced pension holidays - in other words threw prudence out of the window and encouraged a culture of debt.

New Labour continued this. Although they gave the Bank of England independence, they undermined this by dividing responsibility between the bank and the ineffective Financial Services Agency with further hits on our pensions and the encouragement of totally irresponsible credit.

All in all we are reaping the whirlwind of Thatcherism and New Labour from which it will take us years to recover.

We do not want risk averse mortgage lenders of bankers but we do want a culture of proper risk assessment and sensible lending to security ratios. Most people would like an end to free-fall in the housing market and stagnation in construction. Nevertheless, we want a sensible recovery that is sustainable and affordable to people in the wage and salary range for most people.

For that we do need to ease the tax burden on the lower and middle income groups who are hardest hit and an end to the excessive pay and bonuses and unjustified tax loopholes for the super-rich.

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Memories of Eddie George…

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The death of Eddie George, former Governor of the Bank of England, was announced this week. I got to know him quite well when I was the Liberal Democrats' Treasury spokesman between 1995 and 2000. During that time I produced a pamphlet making the case for Bank of England independence and changing its name to the UK Reserve Bank - which is what it actually is.

Eddie invited me round to lunch at the Bank - to explore the idea. He did ask me if I was doing away with the 'Bank of England'. I told him, yes, as a Scottish MP I thought my proposal was more appropriate. He replied "I suppose it is only sentiment that makes me resistant to that idea."

A chain-smoker Eddie George deeply resented the caricature image of central bankers as uncaring about unemployment or social hardship. He believed his job was to contain inflation, which hurts the poor, and create a climate for investment which ultimately created and secured jobs.

However, some of the medicine has adverse consequences for long term gain. He was acutely aware of this and resented that his attempts to explain it were misunderstood. In the end, I believe he did appreciate being the first Governor of and independent Bank of England.

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…and Clement Freud remembered

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Also last week we lost Clement Freud who was Liberal MP for North East Cambridgeshire when I was first elected to Parliament in 1983. He was originally elected for the Isle of Ely in a by-election.

Most of the obituaries I have read got it about right. He was a complex character very protective of his own self-image, very witty in his own lugubrious style but could be intolerant and rude.

He hated smoking in all its forms and would leave a room if anyone lit up. However, on one occasion, I remember going to the members' dining room with him to find that the table Liberals usually occupied had been taken over by Tories and every other table in the room bar one was full.