Showing posts with label government. Show all posts
Showing posts with label government. Show all posts

Tuesday, 28 July 2009

Skewed views?

The Ministry of Defence is going to court to appeal against increased compensation awarded to two soldiers, one injured in training, one injured in combat. The lawyers' argument is expected to be that only initial injuries should be compensated, not subsequent health problems. If every case were to be judged on its merits then the uneasy feeling I have might not be justified. My fear is that if the MoD wins its appeal this victory might be thought to set a precedent in all following judgements. A fractured thigh may lead to arthritis later on which might not be considered too difficult to live with (except by the sufferer) A person blinded in a bomb attack will need help to adjust to a sightless existence. What of those victims suffering psychological trauma following physical injury? What about severe injuries which might have unforeseen complications many years hence? Certainly the compensation should be appropriate but surely there cannot be one set payment for each description of injury with no thought for the future, no evaluation of what might develop?

Meanwhile, while the armed forces continue to fight in Afghanistan at the command of the Government, Members of Parliament, recently entangled in a grimy expenses scandal, have managed to pass new rules allowing them to claim £25 per night without presenting receipts, giving them a potential extra payment of £9125 per annum. The subsistence allowance can be claimed for refreshments for any night spent away on business.

MPs have also awarded themselves a pay rise below inflation of 2.25% while at the same time keeping the so-called 'John Lewis' list which enables them to spend taxpayers' money on furniture and household goods for their second homes. Average pay for MPs is £64776 on top of which they receive additional allowances to run their offices, employ staff, find places to live in London and their constituencies and to cover travel between Parliament and their constituencies. The pay rise will bring average pay to £66,223. A possible £9125 in food and drink expenses raises it to £75348. Some MPs are paid more for special responsibilities such as Chairmen of Select Committees and Speaker of the House. Those who are government ministers receive an extra salary.

There are currently 646 MPs. The annual bill for these our servants will be £48,674,808 at the very least.


Wednesday, 1 July 2009

In the Red

Have you ever been overdrawn? Have you agreed an overdraft with your bank which legitimises being in the red? If or when you overreach that limit does your bank charge you?

It's not a pleasant feeling, knowing that you are incurring the displeasure of your bank manager. Actually it's more likely to be a computer that clocks the fact that you've overspent again and then a human is alerted and sends you a standard letter.

Well, imagine how Gordon Brown must be feeling. That huge piggy bank called the Treasury is empty; more than that it is overdrawn to the tune of around £17.5 billion. That's £17.5 billion. Time to pull in the horns, tighten the belt, hold on to the purse strings, count every penny, make £1 do the work of two and all those other useless and overdue bits of folk wisdom.

As Chancellor of the Exchequer GB was doing a grand job, or so we were told repeatedly by Tony Blair. Perhaps he knew the mess canny Gordon was getting into and maliciously allowed him to continue knowing that he'd get his just rewards once he became the unelected successor to the Prime Minister. Maybe he didn't know. Possibly he didn't care.

Whatever the circumstances of the downslide the net result is that Great Britain Limited is severely strapped. Don't worry though, GB – that's the man, not the country – will pull something out of the hat just as he has before, but it will undoubtedly be a short-term remedy to try and drag his government out of the mire and spray them with rosewater before the General Election.

Meanwhile the Civil Service has been guaranteed huge pensions that are on average six times the size of pensions of people in industry. Unlike industry pensions which are already funded by employees paying into their funds, Civil Service pensions are not already financed but are funded later on through tax revenues. Add to the equation the fact that Civil Servants can retire early, even at the age of fifty, on full pension. This creates an enormous problem for the country in years to come.

Gordon Brown has made matters worse by raiding funds in the private sector; he has taxed pension accounts leaving a problem for industry which faces reduced pensions. In not too many years from now there will be a very large aged poor population and how will they be supported?