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The truths they don't want you to read....

Tuesday, March 13, 2012

It's the economy, stupid! (updated thrice)

With the population in the islands expected to crash by nearly 11% in the next 25 years the demographics look ominous for the islands.

It is not so much the absolute change that is the scary factor, and more the relative ageing of the population that poses such a threat the future economic viability of the islands.


The curve is more a death spiral, with - for instance - future school provision requirements looking to be grossly over-estimated at the moment.  There will be fewer pupils attracting smaller grant support to pay for ageing and more expensive buildings.

The lack of economic development in the islands is a very major issue.  Indeed, I would go so far as to say that it may be the potentially terminal issue if it is not addressed.  For without economic growth there won't be the children to fill the schools or build new businesses or inherit their parent's hard work.

When was the last time that the Scottish Government announced something positive for the future economy of the islands?

Just this week we are told to be grateful for the reinstatement of single-journey fares for hay lorries and vivier tanks.  A discount that should never have been abolished, and we are expected to cheer to the rafters when it is reinstated our MSP makes false claims of his successes.

Businesses cannot plan if they cannot be sure about the future.  With commercial RET up and down like the proverbial, how can long term investment be secured, when the Government doesn't know (or won't say) if a policy is staying, going, being amended or "out to consultation".

My good lady wife is away this week meeting with large existing clients to discuss extending the services we provide.  This has huge potential, not least as the clients are keen to see what we can do.

But as it is a business flight, there is no ADS available, increasing fares by 167% which is just enough of an impediment to make us consider if the journey is really necessary.  We are trying to win work for the islands, but Government cost-cutting is affecting our ability to create employment.

I know of one large capital investment that has been cancelled, as the additional costs for transporting building materials have tipped the balance - and that was in the service sector.  How is affecting those who have to use the large hauliers as a matter of course?

Incoming Councillors must be forced to pledge to continue the fight against this policy before it drives the economy, and the future of the islands, over the edge.

Update: I can't use specifics for professional reasons, but Ian MacIver can.

Update 2: I'm told that the poor truaghan Alasdair Allan has resorted to telling hauliers that tale that full RET will be reintroduced in an Independent Scotland.  Presumably with the choice of gold or silver cutlery in the dining room.

11 comments:

Anonymous said...

One of the first things the new councillors will need to do is to really understand how hyper-critical the local economy has become. They must talk to the small local private sector businesses. There must also be a move away from public sector expenditure on projects that don't wash their face. For too long, large capital sums have been wasted for very little return in real terms. They may make good figures in FTE's for funding applications but when you measure the return on that capital, it is woefully poor. Decisions for approval of these can often be misguided in the mistaken belief of investing in economic growth, when in reality, the game being played is consumption economics. This means that the local economy will never shake off its dependency on state aid. More opportunities need to be created with assistance to the private sector if the economy is going to have any chance of bouncing back.

Anonymous said...

There were never any special consessions for vivier lorries outwith the RET scheme in the firsgt place, Dr Allan had his facts wrong on that one. Will he publically retract this misinformation?

The abolition of RET to these islands will only serve to reduce profitability for many businesses based here, and increase the living costs due to the inevitable hike in charges. I don't care what spin is put on it, that is fact.

Anonymous said...

Heah Heah- Dr Allan is wrong indeed about Vivier Lorries (would he know one if he was knocked down by one?)
But HAY anyone can make a mistook....

Anonymous said...

1.13pm - are you referring to the big white elephant of Arnish by any chance?

Anonymous said...

Everything is 3x more expensive here, this is not simply down to being a remote community. Even our locally baked morning rolls are 3x more expensive at £1.85 for six (65p for six morning rolls in Inverness and in Glasgow). Make your views known via the Office of Fair Trading consultation which is looking at the cost of living in these islands. Its not just about cost of petrol, flights and ferries - our basic necessities are only available at extortionate cost - this is what is driving people away/deterring people from relocating here. Buy local = get ripped off. Make your views know: Office of Fair Trading: http://www.oft.gov.uk/OFTwork/consultations/remote-communities/

Anonymous said...

has the former councillor forgotten that he voted for the 'restriction to trade' 10 years ago when he voted against a Lochboisdale to Mallaig ferry service put forward by another former councillor who now seems to be happy to give publicity to the first former councillor?!

Angus said...

12:13 do you want to clarify who everyone is?

I seconded the Council motion for a Lochboisdale-Mallaig service at a Council meeting in Balivanich only to be bitterly opposed by Mr MacKinnon who won the vote (25-6?).

Anonymous said...

locally baked morning rolls are 3x more expensive at £1.85 for six.

6 shilling a roll.

This will not happen. ?!?

Mrs N said...

But as it is a business flight, there is no ADS available, increasing fares by 167% which is just enough of an impediment to make us consider if the journey is really necessary. We are trying to win work for the islands, but Government cost-cutting is affecting our ability to create employment.

I don't think we considered whether the journey was necessary because it is good to win business but the barriers to doing and winning business in the Islands are enormous and getting bigger.

Anonymous said...

I seconded the Council motion for a Lochboisdale-Mallaig service at a Council meeting in Balivanich only to be bitterly opposed by Mr MacKinnon who won the vote (25-6?).

Angus a once in a life time event, all 31 Councillors in Balivanich at one time beggars belief.

Anonymous said...

For too long, large capital sums have been wasted for very little return in real terms.

Got that right. One of the biggest recent economic mistakes in these islands was to go with a "broadband" service which was:

- slow to the point of being useless for many businesses, existing and new
- expensive
- unreliable
- out of date when commissioned
- took several years to be built
- does not extend to many homes and businesses

And this cost several millions of pounds of funding, most of which went to mainland contractors and consultants e.g. Atkins. And the service is operated from Inverness.

And all because a bunch of councillors and quango heads with rather less IT and comms knowledge than they should have were taken in by a sweet-talking teleworking organiser.

Upshot of all this.

1. Many people with skills - and most of which are young - that need the net have moved to the mainland, Inverness, the central belt, London. And further, to Germany and the USA.

2. Many people looking to move or set up businesses that need acceptable net access do their research, find out what a disaster it's been here, and don't move to the Western Isles. No-one who needs the net wants to move here - everyone does their research first - in terms of the reputation for being an online place to thrive, this place is toxic.

And before anyone says "It isn't important; I don't use the net much" - look at the facts. Most people do. And it's becoming mandatory for many things, from booking travel, to filing various data. Yeah, even today, Encyclopaedia Britannica announced they are no longer printing editions, after 227 years of book form. From now on, it's online only from them.

Not online? You're gradually becoming disconnected from civilisation, and from a sustainable income...