Saturday, 28 March 2009

4p income tax reduction

The Lib Dem idea to reduce income tax to 16p will not benefit people on lower incomes as much as those on higher ones. Here's why with a bit of fag packet maths:

The current 20p tax bracket is applied to earnings from £6,000 to £41,000 (for most workers assuming they get the full personal allowance of £6k). A worker earning £11k will pay 20p tax on £5k, i.e. £1000 per year; a worker earning £41k will pay 20p tax on £35k, i.e. £7,000 per year.

Reducing this band by 4p puts money into the pockets of people paying income tax. Someone earning £11k will have an extra £200 to spend each year (a pay rise of 1.8%) and someone earning £41k will have £1400 pounds more to spend (a pay rise of 3.4%).

People not paying tax, e.g. someone on benefits or a state pension gets nothing (no pay rise at all). Earners over £41k don't get more than the £1400, but a household with two people earning £41k each gets an extra £2800 p.a.

Does this redistribute wealth to those most in need? Of course not.

The Lib Dems have claimed that reducing VAT has made no difference to the credit crunch. They are right in that respect - it is like splashing water at a forest fire. The credit crunch is a worldwide problem founded on the very basics of our economic system, i.e. capitalist greed and a debt based monetary system.

Was the 2.5% reduction any better at redistributing wealth? Yes, it is better but still not great. It will increase the purchasing power of people on benefits and state pensions. It will increase the purchasing power of people on lower incomes - but again it is not perfect. If you buy £5k of vatable goods each year, your purchasing power increases by £125; if you buy £20k of vatable good, your purchasing power increases by £500.

What is needed is a better focussed tax, taxing pollution rather than simple spending. This should be coupled with tax increases for higher earners and a citizens' income for all.

I don't want to see people on £41k getting a 3.4% pay rise while people on low incomes get nothing. Inflation is negative for people with large mortgages / high incomes and around 5% for those on lower incomes / without mortgages. Tax needs to be paid by those who can afford it, not those who can't.

Wednesday, 25 March 2009

Tories confused over resident's parking charge

The latest Conservative newsletter in Fant Ward tells residents that their Conservative County Councillor is lobbying against the new resident's parking charge being introduced by... the Conservatives.

I inferred from the newsletter that the local Tory borough councillor is against the charge. Perhaps then he should have voted against it rather than putting out a newsletter that appears to speak out against it! It is such a shame that the borough councillor did not set out his position and say why he supported the charge rather than misleading people.

LibDem says tax the poor, not the rich

Lib Dem candidate, Peter Carroll, has stuck two fingers up at people on low incomes in his commentary on the credit crunch. The latest copy of their Focus has him saying that the reduction in VAT should not have happened and that there should be a reduction in income tax instead.

Anyone with a basic understanding of economics knows that VAT is a regressive tax and income tax is progressive. The lower your income the greater the impact of VAT on your spending power, i.e. his idea will hurt pensioners, the unemployed etc. rather than people on higher incomes. On the other hand income tax payments increase the more a person earns and reducing income tax means that the rich get richer.

I find it quite bizarre that Maidstone LibDems are backing such an appalling stance. So much for their claims of being progressive!

This is the transcript:

Peter Carroll said, "I agree with Vince Cable that the VAT cut was a waste. The Government should have cut Income Tax instead. Such a move would have given people more spending power which would have helped local businesses."

Vege cafe opening in Maidstone

Big news for Maidstone! Currently there is only one vege cafe here at the Blackthorn Trust but I spotted a notice in a window of a shop on the lower High St that said one will be coming soon. Fantastic news!

Fairtrade Maidstone


Fairtrade Maidstone was launched today following the award by the Fairtrade Foundation of Fairtrade status for the Borough. The steering committee presented the Mayor with the certificate at an event in the Town Hall attended by local councillors, press, schools and businesses. I gave a bit of speech as chair of the committee and we drank loadsa coffee.

Lots of work done to get FT status: street stalls, talks, a picnic for 200 kids etc. Plenty more work planned for 2008! First job was to get the website up and working.

Sunday, 22 March 2009

EON pushes ahead with Kingsnorth work

Looks like EON are pressing ahead with their work on Kingsnorth (see Kent on Sunday). They are planning a pipe line to take CO2 from the power station to bury in an oil field in the North Sea.

It would be much more efficient to use cheaper tried and tested technology such as wind rather than trying to build the world's first commercial carbon capture coal power station and hope that it works.

Why do companies favour limited, unrenewable resources over limitless wind?

Anyway, good coverage in the KoS.

Saturday, 21 March 2009

Sustainable Economics the Green Party way

The Green Party Conference has just passed a radical change to our monetary policy. We now have a policy that states how we would control the overall money supply, via fractional reserves and control of derivatives, and how we would maintain and direct the supply of new money.

New money is injected into the economy through the Bank of England providing the Treasury with the money to spend on much needed projects. This form of quantitative easing means that renewables, energy reduction, public transport and so on can be properly funded.

Money supply can be contracted through removal of money from the system allowing us to move towards a steady state economy - no economic growth is what we want!

Monetary policy

EC660 In a Green society the informal sector will eventually gain in significance so that formal transactions and money generally will have a lesser role than at present. There is however no reason why a financial system cannot be made to work in the interests of the community. Practical decentralisation of banking and monetary policy will therefore be linked with a programme of political devolution.

EC661 The world money supply has increased over the medium to long term. Almost all is created by commercial lending institutions. The resultant debts are an important promoter of economic growth and consumption, as well as instability. The emphasis in monetary policy will be to control and redirect the creation of money towards socially and environmentally sound areas of the economy, and away from unsustainable and consumption-driven areas.

EC662 Greed-driven lending and financial engineering lead to the accumulation of debts, derivatives and other securities based on debt, and so to financial crises. In particular we aim to avoid:
1 Excessive economic dependence on private debt;
2 The reliance of banks on inter-bank lending rather than customer deposits;
3 Excessive lending on mortgages and for consumption;
4 Complex and opaque financial instruments, which managers of financial institutions and regulators themselves do not understand;
5 Lack of transparency on financial markets, and lax and inadequate official regulation.

EC663 The current economic system enables commercial banks and other financial institutions to exert an unacceptably large influence on the economy. Their lending power should be reined in, enabling the emphasis of lending to be transferred to sustainable production."

EC664 We will introduce strict controls on the financial sector to ensure that it serves the purposes of a sustainable economy. To ensure stability, we will regulate all financial instruments firmly and permit only those that are transparent, that offer limited risk of financial destabilisation and are clearly beneficial. We will ensure there is stricter regulation of the banks, limiting them principally to the on-lending of customer deposits and enforcing fractional reserve ratios. We will require transparency in all financial trading, including that undertaken by private investment funds.


EC665 Since these restrictions on bank-lending will severely restrict the money supply, the Monetary Policy Committee of the Bank of England will be instructed to monitor the need for increase (or decrease) in the money supply, based initially on maintaining the amount of money existing at the time of implementation of these measures. Criteria will be developed in the light of experience, aiming to avoid both inflation and deflation. It will accordingly instruct the Bank of England to create any supplement needed, on a monthly basis, and credit it to the Treasury to be spent by the government on projects that help society and environment. If the occasion arises that a surplus is threatening to cause inflation, the Bank of England will receive back and cancel an appropriate amount of money.

EC666 In the longer term the banking system should be largely brought under democratic control, preferably at a local level. This will allow the process to work in the best interests of the community as a whole, rather than principally in the interests of commercial banks and their shareholders.

EC667 The Bank of England will continue to be the institution for the regulation of the national currency and the setting of base interest rates. However, it will not focus on narrow economic indicators such as the rate of inflation, but instead will take a broader view on the impact of its decisions on the economy as a whole. Final decisions on the setting of base interest rates will be made by a democratically accountable committee made up of representatives selected from the different regions of the country.

EC668 In order to help bring about the democratisation of the banking system, and in pursuit of our policies to support the growth of local economies, a network of local Community Banks will be established. These will be democratically accountable non-profit-making trusts, which will be able to provide low-cost finance both at district and regional levels. Any operating surplus arising from these Community Banks will be reinvested in their local communities. Community Banks will be empowered to create credit in the same way that commercial banks currently do, and will be given favourable conditions for doing so by the central bank. They will also be able to create their own local currencies, to operate alongside the national currency, where this is supported by the local community.

EC669 In order to bring about a more socially equitable society, it is important that poorer citizens have access to affordable credit, which can give them an opportunity to increase their basic living standards. Alongside Community Banks, measures to help facilitate this will include the promotion and support of credit unions and micro-credit schemes in which small groups of people cooperate to provide guaranteed small loans to each other.

Dollar should not be reserve currency

Green Party conference motion on radical new international finance is passed! US$ and Euro should not be reserve currencies.

EC961 The tripartite global system regulating international finance should be replaced by three new bodies:
  • an International Reserve Bank to administer the neutral international exchange currency (EBCU);
  • an International Clearing Union to oversee goods and carbon trading;
  • a General Agreement on Sustainable Trade.
EC962 All countries belonging to the tripartite system should make their currencies convertible but according to internationally negotiated and fixed exchange rates. Domestically countries would be expected to administer exchange controls

EC963 The global trading system would aim to achieve balance trade between countries; those which operated extended surpluses or deficits would be fined.

EC964 The US dollar should no longer be accepted as equivalent to gold in international transactions and other national or supra-national (i.e. the euro) currencies should no longer be used as international reserve currencies.

EC965 Their role should be taken on by a neutral international currency - the EBCU - linked to the right to produce carbon dioxide.

Friday, 20 March 2009

Slash public conveniences says Maidstone BC

Maidstone Borough Council are shortlisting designs for a £4m makeover of the lower High St, the Kent Messenger's front page reveals. Page 2 of the KM tells of how the council is preparing to slash (pun intended and many more to come) the number of public toilets it provides as it can afford to run them.

While the High St could do with a lick of paint, Maidstone does NOT need more shopping space. Last year the Tories were talking about turning the gaol into a shopping mall. The LibDems sold one of the most historic streets in Maidstone to build Fremlin Walk over the top of it - you can't so much as think about waving a placard before security guards bundle you off the site. The Stoneborough centre was opened in the 1970's and still serves well. We do NOT need more shops!!! How many more times?!?

We do need loos though. Closing them is a crap idea - shit even! I think the council may be taking the piss??? They are clearly flush with money to be able to reburbish the High St, so why not fund toilets? They must have more than a penny to spend? There is clearly something wrong with a cistern (system?) that puts shopping ahead of providing basics. They need to put loos as their number one or number two priority. Ok, enough!!!

Avoid tax with the Barclay method

The grauniad is upset about being silenced by Barclays Bank and a judge after it tried to publish details about how the banksters are apparently screwing billions out of the government through tax avoidance. Details of the documents were published on wikileaks but strangely that site seems to have been taken off line. Can't think how that might of happened...

Big business vs Government - hardly a surprise which will win.

Anyway, for big corporate tax avoiders there seems to be plenty of advice on the interweb about how Barclays have alledgedly managed it.

Green with envy :-)

Having to miss my first Green Party conference for a while. Sadly for me, this one looks fantastic with information on campaigns, a workshop on health democracy, motions for debate (one of which I proposed but can't now speak to), and so on. Hope people have a good time! Ian and Robin are fronting the Maidstone contingency this time.

Caroline's speech looks superb, especially the comment on slavery...

This is from the Beeb this morning:

Climate change is "the greatest threat to humanity", Ms Lucas will add, saying: "They say it's up to us - do your bit, act on CO2, we're in it together.

"No wonder people are confused. The greatest threat this country faces - up there with international terrorism, the rise of Fascism in the 1930s.

And the government is telling us to change our light bulbs and turn our washing down to 30 degrees."

Ministers must "take the lead", she will say.

Ms Lucas will add: "What if William Wilberforce had said 'Yes, we know slavery is wrong but we have to think of the economy. So could you just cut down a bit? Own one slave instead of two?'

"When Neville Chamberlain returned from Munich and waved that scrap of paper promising peace in our time, at least he believed it.

"Fool that he was, he honestly thought that he had reached a deal with Adolf Hitler. What excuse do our current leaders have?

"Labour have had nearly 12 years in power. And they have done nothing."

Wednesday, 18 March 2009

24% rise in Kent's traffic

From the Kent Messenger: "Traffic levels in Kent have grown by nearly a quarter in 15 years - a greater rate than neighbours Essex, Surrey and most other counties in the south east."

Only Buckinghamshire and Oxfordshire had higher rises in the South East. I see that Kent County Council wouldn't put a councillor up for comment and left it to one of their officers to claim they are trying to reduce traffic.

Frankly, this is basic political cowardice and typical of the business as usual grey parties. The Tories are doing nothing to promote alternatives to cars aside from issuing the occasional platitude. They are still building roads, refusing to improve public transport, cycling and walking. They won't make our roads safer by slowing down traffic. They are not building a sustainable society.

Well done to the CPRE for exposing them!

Monday, 16 March 2009

YouTube coverage of the OBE speech

The footage of Pete Postlethwaite threatening to return his OBE is now on YouTube. Do watch it!

Franny Armstrong, director of the Age of Stupid, has called for a Green government, but Alistair Campbell is not happy...

STUPID GOVERNMENT!

Despite the launch of Not Stupid campaign after the premiere of Age of Stupid last night, it seems that the government is actually very stupid.

Today it turned down a wind farm in Dover... Stupid!

Last week plans for another power station in Kent were announced... Stupid!

And don't forget the third runway, the road building, bailing out the car industry and bankers while public services suffer... Stupid!

Are they trying to make is all look stupid?

Sunday, 15 March 2009

Not Stupid

It was great to attend the premiere of The Age of Stupid last night and to see Ed Milliband squirming as the hypocrisy of Labour's record on climate change was unpicked. Of course the Climate Change Act is ground breaking, but actions speak far louder than words and the actions to expand airports, build more roads, bail out the car industry rather than invest in renewables and public transport are damining.

Pete Postlethwaite, who stars in the film, gave a particularly emotional speech at the end and declared that if Labour built dirty coal Kingsnorth, he would be handing back his OBE. Milliband was visibly shaken.

The film was great too!

Set in 2055, the archivist is the last man alive after the ravages of climate change have destroyed most life on the planet. He is reviewing footage showing just how stupid we were and how we failed to act despite the increasing climate catastrophies around us.

The footage included a nimby campaign against a wind farm with a woman suggesting that tackling climate change is important, but we mustn't spoil the view.

This film should be seen by everyone.

WPM Bulletin

The latest edition of the Wealden Progressive Movement's bulletin is available here. Interesting interview Mark Steel in it.

Tuesday, 10 March 2009

Labour's record on redistribution

The chilling picture of a Victorian sized poverty gap painted by the Indy demonstrates just how far free market capitalism has travelled and the mire that it has left in its wake.

Inflation is hitting poorer people hard while leaving the rich to benefit from falling petrol prices and mortgage rates. The Institute of Fiscal Studies have shown that the poorest pensioners are suffering with 6.9% inflation while people with large mortgages got an effective pay rise of £10k. Inflation is running at 4.7% for people renting privately, 4.9% for people with no mortgages and 6.1% for people in local authority housing.

"The IFS analysis reveals that in January 2009 the richest fifth of households had an average inflation rate of minus 1 per cent; the poorest fifth had an average inflation rate of 5.3 per cent."


Of course, if this picture had emerged at the end of 12 years of socialism, I would argue that socialism doesn't work, however the country has witnessed policies that right wingers could only dream of: bank deregulation and bail out, privatisation of mail and health, and so on.

The poverty trap caused by the benefits system is an appalling indictment of Labour's (and prior to that Tory) policy.

We need to introduce a basic minimum income for everyone - a citizen's income, an income that people can top up with earnings without fear of losing it. An income that people can live on, that can't be taken away, that reduces the fear of trying to get by.

Pensioners need a decent income. Pension funds are crashing with stock markets, saving are attracting no interest. People who have worked and saved are struggling. The state should stop bailing out the banksters, and simply bring banks under democratic control.

Put bail out money towards people and projects that need it. Poorer people and pensioners need this money!

Sunday, 8 March 2009

Maidstone Marker vs Shaun the Sheep

£63,000 for a stick with lights on by the banks of the Medway...

Now I'm all for art and so on, the totem pole next to the Maidstone Marker is OK, the clock on the other bank is OK, and Shaun the Sheep was fantastic (where is he now?).

For those not familiar with Shaun, he was a 20 foot sheep planted with flowers over his woolly bits. I can't find a photo of him on the web, so if anyone has a photo (or knows where he has gone) please let me know.

Anyway, the stick is part of the Elemental series in Maidstone, like the lights on the side of the bridge that you can change the colour of by txt. I'm sorry but the stick doesn't say elemental to me and I also gather that £24k of council money went into it.

Saturday, 7 March 2009

Demonstrator's database

Who needs ID cards or the national database scheme when the police have already made one. This report from the Grauniad says what we have know for some time, that the police are keeping records of people who are not breaking the law but simply exercising their right to demonstrate peacefully.

They are clearly breaking a number of laws by doing this and all hats off to Liberty who seem to be leading the charge against the police in the courts.

The police can take our photographs without our permission and store them on a searchable database to be used in the future. But if we take a photo of them we can be locked up for 10 years... No wonder the builders are getting into the action now.

Climate news

Slowly, slowly we edge forward.

Yesterday, news that Sheppey is to get four wind turbines should be welcomed - but we need 40 or 400 or 40,000... (obviously not all on the Isle of Sheppey!)

The Arctic sea ice is melting so fast that shipping companies are looking at new trade routes opening up in a few short years. Scary stuff, sea levels won't be massively affected by arctic ice melts as it is already in the sea (think ice cube melting in glass of water), but the implications for the speed of melt of land ice, such as Greenland and Antarctica are massive.

Meanwhile a local government in Kent seems happy to waste cash on designer street lighting such as these, rather than tackling energy.

Finally, Leila Deen has thrown green custard in Mandleson's face. Normally I would condemn this as a step too far, direct action should be non-violent after all, but then he wasn't exactly hurt and it was Mandy... I do applaud him for not having a body guard though. The third runway at Heathrow and Kingsnorth are the front lines of climate change campaigning in the UK.

Thursday, 5 March 2009

Qualitative Easing

Quantitative easing is all the rage today. The Bank of England pumped £75 billion into the economy and reduced interest rates to 0.5% - both actions should be applauded but we need to ask where the £75 bn is going.

Simply increasing the amount of money available to commercial banks to borrow from the BoE and then lend to customers, means that the country suffers unfocused reflation. While there is clearly a need for businesses to gain access to borrowing, the government should use a large proportion of the money to stimulate green economies.

We need a national insulation programme, massive investment in renewables and public transport. Ploughing money into these areas would reflate the economy and create the green jobs that the country needs. This investment could be thought of qualitative easing perhaps?

Sunday, 1 March 2009

£100k to knock a minute off travel time

Letter from Ian to the Kent Messenger:

Dear Editor,

So travel times through Maidstone by car have fallen by 40 seconds per mile, getting people to their destinations perhaps 1.5 minutes quicker, and average speeds have increased from 14mph to 17mph (KM 27 Feb) as a result of £100,000 of investment to get the traffic light sequences
working properly.

While this will help to bring about a negligible improvement in air quality in Maidstone, and almost imperceptible improvements in average journey times, surely this money could have been more wisely spent on improving public transport, along with cycling and walking facilities, and thereby reducing traffic volume rather than getting it to travel slightly faster than at present.

The daily congestion that throttles Maidstone cannot be overcome by tinkering with traffic lights; only major improvements in the quality, cost, and convenience of adequate public transport, together with healthy alternatives to car dependence, can provide an effective solution to Maidstone's transport problems, as many other major UK cities have proved, with bold initiatives, and appropriate levels of county and civic political and financial support.

Ian McDonald
Transport Spokesperson, Maidstone Green Party

Weapons of mass ridicule

More information from Kent Police's approach to crime prevention in today's Observer. The list of items confiscated by the police in the name of preventing crimes has been revealed. Apparently the following are criminal weapons:
  • packets of balloon
  • tents
  • a clown's outfit
  • camping equipment
  • cycle helmets and bike locks
  • plastic buckets
  • bin bags
  • blankets
  • soap
  • banners and leaflets
  • books
  • party poppers
  • nail clippers
Dangerous weapons for use by extremists these. I think the ability of party poppers to make people jump should be most widely condemned.

This is my favourite bit:

Kent's assistant chief constable, Allyn Thomas, defended the actions: "By seizing items which could be used to commit a crime, we were able to ensure criminal acts were not carried out and more importantly no one was injured by some of the items which potentially could have been used to harm others."

Mr Thomas, you need to get another job - you are clearly not cut out for serious police work.