The government is a rotten employer

Yesterday we debated the msierable and foolish Bill the government has brought in to change the way MPs allowances are paid and to regulate MPs financial conduct.

The centre piece of the Bill is the establishment of a new quango to design and administer the expenses and allowances system – the very same system Kelly has been asked to redesign as well. We were told the rushed Bill can always be amended later in the year if Kelly disagrees!

I asked what consultations the government has held with the Fees office staff who currently do this work. No answer.

I asked if staff in the present Fees office will be automatically transferred to the new quango (under TUPE). No answer.

I asked if staff will lose their jobs and have to compete for new jobs at the new quango. No answer.

I asked how much extra the new quango would cost compared with the current arrangements. I was told it would cost the same. I find that difficult to understand, given the costs of set up and the likely high salaries that will be offered to the Heads of the new body.

We need a less generous system of allowances. I suspect we now have one, after the changes made in recent weeks. It just needs summarising and approving.

We need tighter administation of the new system. That can be delivered by clear instructions from Parliament to a suitable senior employee, who should be responsible for systems that ensure proper approval and documentation of claims.

None of this requires an elaborate new structure. A good employer embarking on such an upheaval would consult with the exisiting staff first, hear their views, and would seek to minimise disruption and redundancy cost.

This bull in a china shop approach is likely to produce more problems, not less. This government has been keen to pass lots of labour laws for the private sector. Don’t any of the rules apply to them as employers?

The economy is still in freefall

The latest figures show the UK economy has been in worse decline than at any time since the 1930s. As expected, the Chancellor’s forecasts have turned out to be too optimistic.

Worse still, the biggest decline by far has been in manufacturing. The government sector has continued to grow – on borrowed money – and private sector services have been patchy. The biggest hit has been taken once again by those who make things. This is the very opposite of what the PM always said he wanted.

Two of the weakest sectors have been new housebuilding and car manufacture. The government has sought to encourage the former throughout its life, but has been most unsuccessful. It has sought to tax the car into oblivion for much of its period in office, only to offer some offsetting cash breaks once the crisis in motor manufacturing was painfully clear.

The irony of the government’s strategy of subsidising banks, spending more in the public sector, whilst regulating and taxing private industry more has been to lead to relatively much more unemployment in the industrial sector than elsewhere. The legacy of the distorted economic policy will be more closed factories and more retreats from making things in the UK.