Comments on: The Deficit Reduction Bill http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/ Incisive and topical campaigns and commentary on today's issues and tomorrow's problems Thu, 24 May 2012 20:42:09 +0000 hourly 1 By: Lindsay McDougall http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22096 Lindsay McDougall Fri, 08 Jan 2010 16:50:28 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22096 Yet Yet

]]> By: Lindsay McDougall http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22095 Lindsay McDougall Fri, 08 Jan 2010 02:24:21 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22095 There is one huge danger with this Bill becoming an Act; that the government with submit it for approval to the European Union. The EU will then attempt to prevent an incoming Conservative government from reducing government expenditure to a greater extent than provided for in this Bill. During the Second Reading, therefore, there will need to be intense scrutiny of the exact wording of the Bill in order to ensure that this danger is avoided. Reducing public sector employment from 6 million to 5 million will probably not be quite enough. During the coming parliament, the total annual public sector payroll and pensions cost will have to be reduced by at least 20% in real terms. Reply: The Bill does not establish maximum reductions There is one huge danger with this Bill becoming an Act; that the government with submit it for approval to the European Union. The EU will then attempt to prevent an incoming Conservative government from reducing government expenditure to a greater extent than provided for in this Bill.

During the Second Reading, therefore, there will need to be intense scrutiny of the exact wording of the Bill in order to ensure that this danger is avoided.

Reducing public sector employment from 6 million to 5 million will probably not be quite enough. During the coming parliament, the total annual public sector payroll and pensions cost will have to be reduced by at least 20% in real terms.

Reply: The Bill does not establish maximum reductions

]]> By: Liberal Conspiracy » The government is smaller than the right admit http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22094 Liberal Conspiracy » The government is smaller than the right admit Thu, 07 Jan 2010 11:16:42 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22094 [...] about it: the state employs 6 million people, or about 20% of the workforce (h/t John Redwood). Half of the state’s spending is actually transferring money to people so that they can spend it [...] [...] about it: the state employs 6 million people, or about 20% of the workforce (h/t John Redwood). Half of the state’s spending is actually transferring money to people so that they can spend it [...]

]]> By: APL http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22093 APL Wed, 06 Jan 2010 21:46:21 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22093 English Pensioner: "Surely it’s just to try to embarrass the Tories if they get elected." I rather thought of it as a hostage to fortune for the Labour party. The bill is intended to hamstring the Tory party, but I can't see any problem with it myself, any time they cut and the lefty cry goes up, they just say, Gordon Brown made me do it, we are acting in the spirit of his deficit reduction bill. English Pensioner: "Surely it’s just to try to embarrass the Tories if they get elected."

I rather thought of it as a hostage to fortune for the Labour party.

The bill is intended to hamstring the Tory party, but I can't see any problem with it myself, any time they cut and the lefty cry goes up, they just say, Gordon Brown made me do it, we are acting in the spirit of his deficit reduction bill.

]]> By: APL http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22092 APL Wed, 06 Jan 2010 21:36:22 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22092 Alan Wheatley: "As to the carriers, I would have thought a carrier is just what is needed to deal with the Somali pirates." My point was not that we should not have the carriers, believe me I would like them. Rather, if we are going to have them then they should be fully operational which means a full complement of support and protection vessels for EACH CARRIER including of course the fleet air arm. That would imply at very significant increase in the Navy's inventory. Given the current environment where this government is already eying the defense budget in a predatory manner we will get the worst of all worlds. To do otherwise would expose very expensive capital ships and their crew to excessive risk. On the other hand, not sure I care about the Somali pirates, given that we hardly have any merchant ships anymore. Alan Wheatley: "For this role the carrier needs only minimal support forces." Yes, but by god I wouldn't want to send a 'half arsed' carrier force five or six thousand miles from the UK without knowing it could protect itself regardless of the threat it was sent to counter. What does it take? Two months to get on station? It has to be fueled and supplied while there and there are a lot of countries in that part of the world that would be prepared to pinch the nose of the 'little satan'. A half protected capital ship would be a very big prize. Alan Wheatley: "As to the carriers, I would have thought a carrier is just what is needed to deal with the Somali pirates."

My point was not that we should not have the carriers, believe me I would like them. Rather, if we are going to have them then they should be fully operational which means a full complement of support and protection vessels for EACH CARRIER including of course the fleet air arm. That would imply at very significant increase in the Navy's inventory.

Given the current environment where this government is already eying the defense budget in a predatory manner we will get the worst of all worlds.

To do otherwise would expose very expensive capital ships and their crew to excessive risk.

On the other hand, not sure I care about the Somali pirates, given that we hardly have any merchant ships anymore.

Alan Wheatley: "For this role the carrier needs only minimal support forces."

Yes, but by god I wouldn't want to send a 'half arsed' carrier force five or six thousand miles from the UK without knowing it could protect itself regardless of the threat it was sent to counter.

What does it take? Two months to get on station? It has to be fueled and supplied while there and there are a lot of countries in that part of the world that would be prepared to pinch the nose of the 'little satan'. A half protected capital ship would be a very big prize.

]]> By: The government is smaller than you think « Freethinking Economist http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22091 The government is smaller than you think « Freethinking Economist Wed, 06 Jan 2010 18:03:04 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22091 [...] Um, no.   Think about it: the state employs 6 million people, or about 20% of the workforce (h/t John Redwood).  Half of the state’s spending is actually transferring money to people so that they can spend [...] [...] Um, no.   Think about it: the state employs 6 million people, or about 20% of the workforce (h/t John Redwood).  Half of the state’s spending is actually transferring money to people so that they can spend [...]

]]> By: JimF http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22090 JimF Wed, 06 Jan 2010 16:34:22 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22090 Lola Problem comes when the grad gets fed up because his mates are earning more in a large organisation, probably with HMG contracts, and getting 6 weeks holiday. This is a really tough issue in a small company, to get a joint sacrifice for joint long term benefit rather than it all landing on you. The real answer is of course for your taxes to not be subsidising your competition in the recruitment market.... Lola
Problem comes when the grad gets fed up because his mates are earning more in a large organisation, probably with HMG contracts, and getting 6 weeks holiday. This is a really tough issue in a small company, to get a joint sacrifice for joint long term benefit rather than it all landing on you. The real answer is of course for your taxes to not be subsidising your competition in the recruitment market….

]]> By: Alan Wheatley http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22089 Alan Wheatley Wed, 06 Jan 2010 12:22:23 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22089 Indeed. Of course MOD(PE) can only procure what is needed to implement policy as defined. Policy can change far more quickly than the procurement of large capital items. The Conservatives have been calling for a defence review, which seems to make sense as we need a re-definition of policy. As to the carriers, I would have thought a carrier is just what is needed to deal with the Somali pirates. We are told there is a very large expanse of ocean to cover, but surely they way to do that is with carrier based air power. When pirates threaten a ship shouts mayday and overwhelming force could be quickly brought to bear before the ship is boarded, or at least before the pirate craft depart. For this role the carrier needs only minimal support forces. Capital ships have always been at risk, which is why no new battleships have been built since WWII. Attack from a distance has been a problem for a long time - e.g. the Falklands. Your points are valid, and reinforce my view that it is not easy to do better. But defence of the Realm should still be priority No.1, and government should do its best to achieve it efficiently. Indeed. Of course MOD(PE) can only procure what is needed to implement policy as defined. Policy can change far more quickly than the procurement of large capital items. The Conservatives have been calling for a defence review, which seems to make sense as we need a re-definition of policy.

As to the carriers, I would have thought a carrier is just what is needed to deal with the Somali pirates. We are told there is a very large expanse of ocean to cover, but surely they way to do that is with carrier based air power. When pirates threaten a ship shouts mayday and overwhelming force could be quickly brought to bear before the ship is boarded, or at least before the pirate craft depart. For this role the carrier needs only minimal support forces.

Capital ships have always been at risk, which is why no new battleships have been built since WWII. Attack from a distance has been a problem for a long time – e.g. the Falklands.

Your points are valid, and reinforce my view that it is not easy to do better. But defence of the Realm should still be priority No.1, and government should do its best to achieve it efficiently.

]]> By: Alan Wheatley http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22088 Alan Wheatley Wed, 06 Jan 2010 12:06:23 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22088 I am sure the MOD could be more effective, but in fairness to them it is not easy. Sometimes government makes it additionally difficult for political reasons, e.g. the delays in preparing for the invasion of Iraq so as not to be seen to be presenting the "wrong" impression while so called negotiations were still in progress. Presumably they were not impressed by the old adage: "if you want peace prepare for war". As a consequence the troops did not get the kit they should have had when they needed it. I am sure the MOD could be more effective, but in fairness to them it is not easy. Sometimes government makes it additionally difficult for political reasons, e.g. the delays in preparing for the invasion of Iraq so as not to be seen to be presenting the "wrong" impression while so called negotiations were still in progress. Presumably they were not impressed by the old adage: "if you want peace prepare for war". As a consequence the troops did not get the kit they should have had when they needed it.

]]> By: Mark http://johnredwoodsdiary.com/2010/01/05/the-deficit-reduction-bill/#comment-22087 Mark Wed, 06 Jan 2010 11:59:36 +0000 http://www.johnredwoodsdiary.com/?p=5311#comment-22087 I think of it as regulatory capture - by making the process of changing banks so difficult, it reduces competition for your banking business, and ensures that incumbents have a strong advantage. I think of it as regulatory capture – by making the process of changing banks so difficult, it reduces competition for your banking business, and ensures that incumbents have a strong advantage.

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