Monday 7 June 2010

Cameron Comes out Truthful on Hard Times Ahead


Cameron spoke today about the cuts facing the country, he has stated that there is no one in the country who will be unaffected by cuts or tax rises, they include cuts of 6.2bn this year. Unsurprisingly he blamed the former administration ( I Say unsurprisingly as it is the way of politics to blame your opposition – Oh and also it is their fault.)

It turns out that the last government tried to hide the fact that in five years time we would be paying more than £70Bn a year just in servicing our debts. More than is paid on Schools/Traffic and climate change. Obviously there was the usual outcry from the Unions; Hugh Lanning (Public and Commercial Services Union) said the Prime Minister was “Trying to paint the public sector as a problem.”

Now whilst I agree that the Public Sector should not be made scapegoats, the problem is that almost 1 in 4 people work in the public sector, in fact I was reading a fact book last night which stated that last year people employed in the private sector would each have paid more into the pension of a public sector employee than into their own. Whilst I do not blame the civil servants (I blame New Labour and their “Job Sweetners” in exchange for votes.) clearly it is unsustainable.

Dave Prentis (Unison) said the speech was a “Chilling Attack on the public sector.” Saying “There was nothing in the speech that told the rich, the banking and financial sector or the city speculators that their privileged way of life will change.” Obviously a Union representative trying to make this a class issue is of no great surprise, and I am sure Mr. Prentis thinks that it really is as simple as taking all the profit from the banks and using to provide extra public sector posts, unfortunately that shows a complete lack of understanding how the world works. If you hit the banks too heavily they will leave the UK, the only ones who will stay will be the ones who have to (Basically just the High Street chains – and just the High Street Business the investment banks will leave as well.) and guess what 1) the High Street Banks do not make any money, 2) The Government are the biggest shareholders in the banking sector. So basically Mr. Prentis’ great idea to bring down net debt is to remove our highest earning sector from the economy and lumber the government with even more publicly funded loss paying businesses.

After all the blame is not entirely shouldered by the bankers, after all each loan deal has people on both sides, the people accepting credit they could not afford are just as guilty as those doing the lending, unfortunately in the nanny state we expected someone else to tell us if something was ok and we forgot to look at it ourselves. If anyone should feel hard done by it is someone like me who has:

a) Never defaulted on a payment
b) Only taken credit I could afford
c) NEVER VOTED FOR NEW LABOUR

Personally however I think it is time to stop trying to blame people and start looking at some facts.

FACT – The Civil Service Must be cut
FACT – Taxes must go up
FACT – it is going to be a very unpleasant time
FACT – if we stay focused we will get through it.


I will however let the last comment on this post go to the former administration.

According to the Shadow Chief Secretary to the Treasurery – Gaff Prone Liam Byrne,
"The coalition has inherited an economy that is growing, borrowing which is falling, and unemployment lower than in America or Europe,"
To me this seems a quite remarkable “rose tinted” outlook on the economy, which seems quite at odds with the note he left after leaving his office last month. ‘Dear Chief Secretary, I’m afraid there is no money. Kind regards – and good luck! Liam’

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