NATIONAL > Get on with the job
Published: Thursday, 08 Jul, 2010
Part of me feels that I ought to at least modify or even retract my statement in the last newsletter that there were no tumbrels in the street for RDAs. Another part of me, the journalist who smells a self serving panic, feels that an opening statement in that same piece, citing
Part of me feels that I ought to at least modify or even retract my statement in the last newsletter that there were no tumbrels in the street for RDAs. Another part of me, the journalist who smells a self serving panic, feels that an opening statement in that same piece, citing 'the predictable protests from those who sense that their gravy train may be about to be rerouted into a siding,' was nearer to the truth. This week has seen a parade of 'experts' through various broadcasting studios, predicting the 'sky falling in' outcome should cuts in their area be implemented. But they're missing a point. As Liam Byrne, former chief secretary to the Treasury, put it; "there's no money left". The sooner people start addressing how we can deal with that pressing matter, the sooner the state will be in a position to lend its support where that might be economically useful. There is no denying that support from the state or an arm of the state can be beneficial in some cases (the need to develop clean energy solutions while the market cannot yet afford them seems a case in point) but misguided state intervention can also distort the market and the more so if those administering the support have an agenda with more than a whiff of political leaning.
RDAs have largely been told that their day is drawing to a close although it still doesn't seem as if that end will come tomorrow. Nevertheless, we have first been told that it would probably happen by 2012 and then that it was happening right now. One thing the government does need to do is publish a definite timetable or, at the very least, explain how the transfer from RDAs to LEPs (Local Enterprise Partnerships) will take place. The alternative is to leave the management of the news in the hands of scare mongers with an agenda and an interest in undermining any efforts to change the status quo from which they make their living. That would be bad for the government but, worse, it would create for business the kind of uncertainty that will simply prolong the current recession. It would also leave potential inward investors not knowing whether the UK welcomes their money, or not.
Another bit of news mismanagement has arisen with the errors found in Michael Gove's plans to replace the 'Building Schools for the Future' programme with a more modest maintenance and care schedule. In an ideal world, old schools would be replaced with state of the art buildings; but our world is far from the ideal. Also, who can doubt that the cost of construction when the state is the customer is greater than when the customer is accountable to shareholders. Once again, the sooner those protesting about the errors in the report (more, I suspect, about the definition of when has a project been started than any deliberate effort to deceive) put as much energy and thought into coming up with ways to work within the constraints of the economy as they do into trying to avoid the reality of the situation affecting their bit of the economy, the sooner will the economy be in a position to start a schools rebuilding programme - albeit at reasonable cost.
If you think there has been a theme running through this article, you're correct. We are in the situation that we are in and if everybody acted as if their section of the economy was the one that should be spared then our predicament would simply deteriorate. This is not a country on its knees but it is a country which has consistently spent more than it earned and that has to be reversed if we are to remain an attractive business environment where overseas investors put their money because of the opportunity value of working here rather than because the government is prepared to offer them a tax break / grant / facility in order to set up here. This country has the skills and it is for that that inward investors should be here.
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