The Rt Hon Malcolm Bruce MP

December Column 2

HBOS vote sad day for Scottish banking

The vote by HBOS shareholders to give the go-ahead to the takeover of the bank by Lloyds TSB was entirely predictable given the bank's dire weaknesses and the Government's clear determination for it to happen.

I am afraid it will have negative consequences for businesses and individuals and for the Scottish economy with job losses likely right across the country.

The Bank of Scotland as a distinctive entity was lost when it was taken over by Halifax, retaining only a Scottish headquarters in Edinburgh. TSB, which was effectively started in Aberdeen, had already lost its Scottish identity.

The announcement that the merged bank will operate as Bank of Scotland north of the border is a bit of a sop that does not disguise the fact that like the Clydesdale Bank, it is a subsidiary of a bank based outside Scotland.

More to the point, it makes it clear that there will be a rationalisation of branches as clearly it will make little sense for a struggling unified merged bank operating the same business model to maintain two branches on the same High Streets.

Not only will this mean job losses but a loss of choice between banks at a time when the banks are not serving their customers very well.

After all, the very reason TSB was created was to attract savers who are now suffering as a result of drastic interest rate cuts. Will there be the same motivation for banks to attract savers?

At the same time many credit customers are facing higher interest charges in spite of falling central bank interest rates.

Once the merger is complete it will be a sad day for savers and borrowers, for businesses and for Scotland with fewer options and reduced competition. Having intervened to take a major stake in the bank and a majority stake in the Royal Bank of Scotland they could have used their influence to promote a better outcome.

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Transport promises alone will not deliver

The Scottish Government's Strategic Transport Projects Review has turned into a minnow which offers little positive commitment for the future and simply reveals that the administration has over-promised and under-committed.

There are promises for improvements to the A96 and the A90 and to rail links. However there are no firm commitments or dates and it is disappointing that a Kintore station will only be for consideration.

Reducing the budget for a new Forth crossing creates no extra money as none has been spent.

Previous comments on the vitally important Crossrail project do not give confidence that it will ever happen. Transport Scotland lack commitment being weighed down with priorities in the central belt.

I have asked them to carry out detailed surveys of potential passenger use not just applying national forecast to local statistics.

When I campaigned for the re-opening of Dyce station years ago I believed it would be supported by local people and it was - in spades. Numbers far exceeded expectations and these have been sustained.

To assess the real viability of increased frequencies and extra stations required a house to house survey to establish who would use the railway if services were upgrade to half hourly or new local stations provided.

A recent petition in Kintore quickly attracted more than 1000 signatures and many people who get stuck in their cars on the Airport and Haudagain roundabouts have told me they would use the train if it offered a real alternative.

We need leadership but so far we are not getting it.

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China and the UK together can help the world's poor

I have just returned from leading an all party group of MPs to China in my capacity as Chairman of the House of Commons Select Committee on International Development.

The prime purpose of our visit was to ascertain how the UK and China can co-operate after 2011 when the present aid programme comes to an end as China has achieved the status of a middle income country.

The committee was impressed by the competence, confidence and commitment of the ministers, officials and businesses people we met. China's achievements over the last 20 years are truly impressive.

Hundreds of millions of people have been lifted out of poverty and China has re-emerged as a global player. Indeed it is thanks to China that any progress has been made to reaching many of the millennium goals and the numbers living in poverty across the world has been reduced.

Nevertheless 250 to 300 million people in China are still living on less than a dollar a day and the per capita income is one twentieth of the UK's. The global recession is also slowing down China's growth and this will have an effect on the poor.

China is determined to tackle the poverty of its people using its own resources but welcomes ideas and experience from outside. As it was put to us, China will tackle poverty by importing foreign experience and internationalising the Chinese experience.

Of course, there are issues about human rights in China and its no questions asked policy towards other countries. Nevertheless as a global player there is plenty of scope for China and the UK to engage on development issues, applying Chinese experience for example in Africa and elsewhere.

I hope when our committee has completed its enquiry we will produce an informed report that can help shape the UK's changing relationship with China to mutual benefit and for the good of the world's poor people.

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Thanks once again for Christmas card

Once again I have enlisted the help of primary pupils across Gordon to produce my Christmas card for this year. We had a large number of entries from all over the constituency and for the first time the winner came from a school in the Aberdeen City part of the constituency - Braehead School in the Bridge of Don.

The theme was 'a North East Christmas' and there were a variety of entertaining and attractive interpretations.

The winner was Micky Johnston from Primary 6/7 with a card of a cheery snowman in a kilt with a saltire on his sleeve and forests and an oil rig in the background. It printed up well and stands out among other cards.

Congratulations to all those who entered and especially to runners up Martyn Burnett from Oyne School and Jess Smith from Chapel of Garioch School.

Thanks too to all the teachers who helped their classes to respond.

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Good wishes to visionary Brian Pack

The Christmas lunch at ANM Group, Aberdeen and Northern Marts, was especially poignant this year as it was the last as Chief Executive for Brian Pack who has been one of the most visible and successful business leaders in the North East.

I have known Brian for more than 30 years and have always regarded him as someone who has his finger absolutely on the pulse of the North East's traditional business interests.

It would be easy to take for granted the success of ANM but when you look at the challenges faced and the fate of other businesses it is clear that Brian's inspired leadership has been a key factor.

Creating Thainstone as a showpiece centre has been visionary and versatile and has been challenged by the horrors of BSE and foot and mouth which could have de-railed the whole enterprise.

I wish Brian a long and happy retirement although I have no doubt we will continue to hear his words of wisdom on the local scene. I certainly hope so.