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October 13, 2010

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Kay Tie

"I wanted to start a small toy shop but the rates were too high."

And there is your fundamental problem. The whole way local government gets funded is a massive problem. 75% of its money comes from central government, and most of its spending is dictated by central government.

Most local authorities have picked on businesses to pick up the tab, since they don't get votes. This resulted in huge town-killing costs, so rate capping and then the national uniform business rates came in.

We need to return to a model where most spending is local, most money is raised locally, and national government does much less. For sure, the loons like Derek Hatton might take over and run a city into the ground. Mrs. Thatcher felt compelled to wrest powers from these loons, whereas the correct response to the voters of Liverpool should have been: "You made the bed, lie in it." The rest of the country could have looked on and learned the appropriate lesson (the flip side being that ideas that actually work well get copied).

DG

Katrina, I don't know of any such committee butwould be interested in getting involved. I agree that the High Street of the future will have to compete on its individuality. Newport has that in spades.

Kay Tie

"It's a bit soon to call Denis MacShane 'bent' KayTie before he is tried."

Really? I think we all know Elliot Morely is bent, and he hasn't been tried yet.

"However eight laptops in three years will take some explaining."

Butterfingers?

Katrina

Is there a save our town committee that anyone knows of? The thought of wandering around boarded up shops isn't appealing. Cwmbran has turned itself around, so can Newport. I think we need cheaper buses( it's almost cheaper for me to take the family into Cardiff on the train than to use the Newport buses), free parking and to stop trying to compete in the same way as Cribbs and Cardiff. Maybe as was suggested by another person here we need to lower the rates to charity shop rates. We could offer favourable rates to small independents and reinvent ourselves as a Market town( although of course our Market is now Asda). I wanted to start a small toy shop but the rates were too high. Or is the next step to let Tesco move into the indoor Market ( well as we needed Morrisons to save the Lysaght why not?) yet again the only winners are supermarkets....

Paul Flynn

It's a bit soon to call Denis MacShane 'bent' KayTie before he is tried. However eight laptops in three years will take some explaining.

Kay Tie

Another day, another bent Labour MP gets his collar felt:

http://order-order.com/2010/10/14/macshame-of-the-labour-blogosphere/

The sound of silence..

Tribalism is a terrible thing.

Kay Tie

"A rubbish con game which leeches off of evereyone else."

That's what bubbles are. Except that "everyone else" plays along too. Dud you think Sarah Beeny made TV shows for just a few financiers?

"Where has that got us?"

The hang-the-bankers movement is poorly targeted. Arbitrageurs, forex dealers, futures traders, none of these were to blame. Yet smacked they will be. Group punishment was very much a favourite technique of tyrants.

Focusing on regulating the specifics of what happened is like preparing to fight the previous war: the next gold rush will be in something else, probably stoked up by some act of government that tilts the playing field suddenly so a few people get rich and sucker in the next wave to start it all anew. Emerging markets, green energy, something desperately fashionable that's not anchored in fundamentals.

Ad

'All the fraud and foolishness that we blame is just what happens whenever there's a gold rush.'

Which is the whole point really. A rubbish con game which leeches off of evereyone else.

'is just what happens'

And thats the explanation.

'So let us not get carried away with the specifics of this crisis.' Where has that got us?

Kay Tie

"You cannot blame the previous government for what happens in America and Ireland where the situation is the same."

Yes and no. The root cause of this is the low interest rates after the dot com crash. All major economies coordinated a low interest policy, which caused ordinary people to load up with debt, primarily mortgage debt. This is the true cause: we as a people brought forward prosperity from the future, but that the future is now.

Ireland is a special case because of the Euro: extra low interest rates set off an enormous property bubble, which bled into Northern Ireland.

All the fraud and foolishness that we blame is just what happens whenever there's a gold rush. It happened in the late '80s, in the 1920s, and in countless manias of the past (South Sea joint stock corporation, anyone?). So let us not get carried away with the specifics of this crisis, since the next one will have different specifics but almost certainly the same cause: debt-funded mania.

Ad

'This is what can happen when a failed government (your government) runs the economy into the ground.

What are the root causes of the cut backs and austerity? You cannot blame the previous government for what happens in America and Ireland where the situation is the same. Its to simplistic just to blame the last government for the economic ills.

Joe page

This is what can happen when a failed government (your government) runs the economy into the ground.

Tough when it bites in your own backyard, isn't it ?

Kay Tie

"High street businesses have suffered declining sales for years now."

Only in relative terms. In cash terms, they've done very well.

It's very important to understand the difference between "proportion of economy" and absolute inflation-adjusted business. For example, the proportion of the economy that is manufacturing is way down, but the absolute amount of money made by manufacturing is up on the pre-1980 levels. They just do it with fewer people, and those people who were in manufacturing do something else. It's an excellent example of efficiency: making more with less. It's what makes us all richer.

Patrick

High street businesses have suffered declining sales for years now.

Customers that used to shop solely in the high street now use the internet (far cheaper), and out of town retail parks are easier to park etc.

How many Newportonians shop at Cribbs or in Cardiff?

Boarded up shops are now common in every town across the country. Shops (especially small family businesses) simply cannot affort the high rates.

Massive rate reductions ,like the charity shops have, might be the only way to go.

I think it more likely for empty shops to be demolished and exchanged for housing.

alesum

Keep up the good job.
Alesum:summarizing the world.

D.G.

Maybe M&S will reconsider now that we can get some movement on the Friar's Walk scheme (will it keep the name, I wonder?)

http://www.southwalesargus.co.uk/news/8448100.Victory_for_city_in_Iceland_battle/

It occurs to me I owe HuwOS and his family a meal there if they actually build the thing...

Kay Tie

"It's disappointing that you are indulging in spin and political posturing."

Sounds like you're peeved the other lot adopted your lot's trademark behaviour. And why so peeved the civil service were involved? Not everything these days is decided on a sofa by a minister and a spin doctor. Hadn't you heard that there is a new way of doing government now?

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