Pension Scheming

When November 30th comes around and you are stuck in traffic because all the trains have stopped running; or you are in your 10th hour of waiting to see a medical professional in A&E; or you are forced to take a day of annual leave to look after your children as their teachers aren't coming into work, think long and hard. Think about whether or not those who have chosen not to come into work and inconvenienced a nation struggling for economic recovery should be on strike.

This week has seen the Government offer farcically large pension deals to public sector workers who have looked that particular gift horse straight in the mouth. One can only assume that the definitely over-generous offer from the Government is a political ploy. Knowing it would be refused by the selfish Trades Unions they are able now to point to the very generous terms they had proposed which are being turned down point blank. It gives them some political leverage, but one hopes they have not gone too far - even with the changes to pensions, many still consider the deal unaffordable. One should hope the deal that is eventually reached has less generous terms, but that is a very unlikely outcome.

Let us look at the other main player in this pensions farce - the ever more idiotic unions (we have been here before). They, the 6-figure salaried morons-in-chief with healthy pay and pension packets, have been rousing their members to turn down a gold-plated offer from a nervous Government. And not actually rousing that many of their members; the strike laws must be changed. We have unions declaring a majority in favour of striking when only a quarter of its members vote for said strike. 75% of people 'represented' in the union have not said they want to strike, yet striking is apparently the will of the people. Barking.

The pension pots that moderate earners in the public sector would still end up with under the new rules are the things of fairy tales for those in the private sector. Little over a million people in the private sector have a final salary pension scheme, yet it is what those in the pubic sector think is their right. Those on relatively small pay packets (say £12,000) up to those on reasonably comfortable wages (say £40,000) all will still receive pension payouts far in excess of what their private counterparts on the same salary could dream of.

Under the new system, a public sector worker on £15,000 per annum would end up with a pension of £12,000. If that was your private wage, to receive the same pension you would have to put away £325,000 from that meagre pay packet - which is never gong to happen. I shan't even go into the pension pots of the rather better off public sector employees - rest assured generous doesn't cover it. The Treasury figures go on, and for a quick look here's a Torygraph article to save me paraphrasing.

In short, the pension scheme being offered is still ridiculously generous. To build up a pension pot large enough to match that of a similar-waged public worker, a private worker would have to pay in vast amounts more of their salary. Yet the unions are not willing to take this on board. The Government is rightly looking to budget - to see what our liabilities are, listing our wants, counting how much cash we have and then managing those liabilities and wants accordingly. One area identified is the largesse of public sector pensions; they cannot be afforded alongside education bills, NHS bills, defence bills - all the things that have to come out of the taxation pot. With the ballooning of the public sector (vastly so under a Labour Government more keen on winning votes by getting people into work in the right constituencies than costing those jobs properly to see if they were affordable) these pension schemes must change. The ostrich behaviour of the Unions is as predictable as it is laughably moronic.

The public must be honest with themselves and not give in to the tired 'underdog' cause that the unions will undoubtedly try to put forwards when they strike. They have been offered a staggeringly generous pension scheme; a scheme that private sector workers of similar wages could never afford. They are turning it down out of pure greed. Yes it is a cut, but a cut to a still high level. There isn't enough money to continue the scheme in its current form. Having been paid a lot yesterday is not a reason for being paid a lot tomorrow.

The demands of the Trades Unions are for the public sector to be ring-fenced, for the economic realities we all have to face to be something they don't. In short, they are demanding we cripple the economy with a pension burden the nation cannot afford. Quite simply, if we carry on like they wish, there will be no pensions because we will be bankrupt. The public sector must not only take their share of the medicine, they must do so humbly whilst realising quite how privileged they are. They complain at having to work longer and pay more to receive less - welcome to the world everyone else is living in. There should be no public support for the proposed strikes. They are not the underdogs. You are.

Not High Standards; Not Cheap Parking

Last week I had to avail myself of some of this National Health I have heard so much about. Having come off second best in a rugby tackle (though heroically soldiering on, stemming the deluge of blood with a little vaseline) I popped off to the local hospital to see about getting them to sew me back up.

After I had explained the ridiculous looking self-help bandage adorning my face to the receptionist I cast my eye around the Wednesday night intake at the A&E department. I had figured I would be in and out in a jiffy, it not being a Friday, Saturday or Sunday and thus missing the majority of the sport and booze related injuries. How wrong I was; 5 to 6 hours was the anticipated wait time.

A Doc popped out and apologised for the "longer than usual delays"; a line I am sure I've heard before somewhere. Anywho, the long and the short of it was I didn't have the whole night to while away sitting in A&E what with a rather early start at work the next day and the requirement to not be asleep at said work. The doc gave me some dressings and suggested I got it seen to first thing in the morning if I couldn't wait. On a side note the Doc the next morning decided my wife had done such a good job with the butterfly stitches he'd just leave it be - clearly she has missed her calling.

Now you may think this is about to turn into a rant at waiting lists, waiting times and the general efficacy of the NHS and its hospitals. It is not. Nope. Maybe some other day - I've not the strength now, though I do remember in my youth when NHS spending was a small fraction of what it is now I never waited more than 4 hours to be seen; money can't buy everything it seems. No, the gripe I have with the hospital today actually doesn't concern the hospital per se, but rather the few acres of tarmac immediately outside its doors. You see, I simply can't stand the hospital parking payment system. My hatred it twofold; I shall, of course, elaborate herein…

Firstly, it seems wrong to me to charge people to visit hospital. If you want to make your go green arguments that we should all take the bus remember you are talking in many cases about people who cannot arrive any other way than by car due to their various ailments. The point is, we've paid for the sodding hospital and its sodding great car park, so how about you let us park there without charging extra? It's not free parking - we've already paid for that too, on top of the middle managers and health based slogans. It seems counter intuitive to penalise those in need of hospital visits or indeed those visiting sick friends or relatives. It minds me very much of kicking a man when he is down.

However, that is not the thing that really gets my goat. What really exercises me is that the slower the service in the hospital (i.e. the worse in a way), the more you are charged. It is the equivalent of the police turning up 2 days late to a burglary and charging the victim whatever the robber did not steal for the pleasure of their wait. When a cab company fails to honour its side of the agreement, we negotiate a discount - if they turn up an hour late, they don't get the full amount. If the NHS fails to provide a timely service though, they are rewarded with extra parking cash and the patient foots the bill.

Perhaps now we see why NHS groups are so keen to treat people in hospital that could perhaps be treated at home. Perhaps this is why despite the billions thrown at the NHS we still have full hospitals and long waits to be treated. Ultimately the sick man is a captive audience cash cow waiting to be milked. Call me a cynic, but when the most efficient part of the department is its car park charging system, it's not that great a leap to hear NHS and see NCP...

Having Your Salmond Cake and Eating it...

Driving into work the other day, I listened to the pugnacious Alex Salmond on Radio 4. He was doing his outraged Jock bit that he so loves. He insisted that whether devolution occurred for Scotland and to what extent would certainly be a matter for Scottish people to decide. It would not, he spluttered as if the words themselves offended him, be a matter for English politicians at Westminster.

Fine. That makes some sense to me. However, you can't have your (Salmond) cake and eat it - though he looks like he's failed to dodge the pudding trolley on at least a couple of occasions. The West Lothian question is one that has long existed and long been avoided. Why should English politicians be barred from deciding Scottish matters when Scottish MPs are allowed to decide on English matters? It is such a crushingly obvious flaw and one easily remedied one wonders why it hasn't been.

Certainly it is not in the interest of Labour or indeed the Lib Dems  - they have many MPs sent to Westminster from Scotland. Removing their votes could be crucial. Full devolution would cripple them both as parties, whereas the Tories would lose just Dumfriesshire. Yet since it was 'officially' mooted in 1977 Tory Governments haven't done anything about an injustice that seems sensible to deal with and is entirely beneficial to them.

Any discussion of the West Lothian Question tends also to trigger discussion of the Barnett formula; the simple formula that sets the amount of money given to the devolved authorities of the UK to spend as they wish. It is the spending of this for Scots only on free hospital parking, free prescriptions, negating university fees with which those south of the border take umbrage. The reason is that the formula gives much more (an average of about 20% more) to the other UK nations to spend per capita on its inhabitants than Parliament has to spend on English inhabitants.

Both the West Lothian Question and the Barnett formula are matters that must be resolved. The formula was not based on need nor indeed on tax revenues. What such a formula should be based upon or even whether it should even exist are still matters of contention. Either way it does not help the union, or future relations of the separated countries, to have such obvious inequality of treatment of its subjects. So Salmond can have is devolution if he wants, but if wants only Scots to vote on it, let's have a bit of vice versa at Westminster. And whether or not devolution fully occurs, there must be a re-evaluation of the Barnett formula. Well-intentioned probably, but definitely a concern - even the best laid schemes o' mice an' men gang aft agley...

Utilitarian Utilities - For the Greatest Good (Profits)

Today's gripe is with the private sector. I've decided I've been bashing the public sector for too long, and a bit of even-handedness wouldn't go amiss. So I'm going to look at utilities, specifically the telecoms and energy sectors and see how these consumer reliant industries treat their customers and why...

I'm told I'm due an upgrade. No, there is no cause for alarm for Mrs Law Abiding Citizen - it's not that type of upgrade. I don't normally leave matters of such importance as marriage and divorce to a telesales operator from O2. If I had the option I'm not convinced I'd leave matters of such importance as my mobile phone in their hands.

You see I'm far from impressed with my mobile phone operator. In fact the same goes for my mobile phone. I think I am probably not alone. Part of the problem is I don't know at whom to direct my vitriol - Apple or O2. I'm not sure if my iPhone drops signal or if my network drops signal. As they're different companies, they both seem pretty content to blame the other.

Unfortunately, I think I've been a customer of pretty much every provider and it appears a universal truth that they're all bastards. Indeed I stuck with Orange for so long in no way because they were competent - far from it - but because I was able on several occasions to say "I've been loyal to you so you owe me." It rarely worked.

I cannot be the only person who would like simply to scream at these huge and often useless companies about my phone hanging up a call and telling me the network is busy (which I knew - I was using it). If they spent a little more time investing in a proper UK-wide network signal rather than trying to put more computing power into their phones I would be a happy bunny. You see much of the time I simply have a very pretty handheld game and music playing calculator cum calendar. But I actually wanted a phone. Unfortunately I'm too hooked on the fleeting moments of real connectivity (and Baby Monkey) that I don't want to go back to my Nokia 3210.

That is also despite the fact that those old phones that actually made phone calls all still work, regardless of their being dropped eleventy times and being full of 10 years' of dust. If they could all stop trying desperately hard to make the first phone to be able to drive your car whilst simultaneously orally pleasuring you (an interesting concept) and remember that phones are primarily designed to call people, it might be a step forward. However, increasing network coverage is the job of the network providers, and as long as they're all comfortable offering only about 50% of the country proper coverage we're screwed. As long as none of the big telecoms companies decides to spend on improving the service, we the consumer, are stuck with a choice between several almost identically bad, identically priced network providers. There's no need for them to spend on coverage if their sales aren't suffering. So short of protesting with great no-mobile days, unless the Government steps in and makes those it allows to use our airwaves and ionosphere play fair for all, not much will happen.

Onto the energy lot then… Much is being made in the media, in between jaunts of Fox Hunting and Where's Werritty?, of the totally unexpected and almost simultaneous price hikes in all 6 of the large energy providers in the UK. Now I'm going to stop short of suggesting Government pricing guides and windfall taxes on huge profits. That's mainly because I don't think it would ever happen and I'm a free market kind of guy. It's just that I'm not convinced many utility companies really operate within free markets. A little more attention paid to pricing would help, but ultimately the system is not set up for smaller energy firms to be able to compete.

One simple example is the renewables sector which is being stimulated by Government funding. The Government pays out (or rather forces energy firms to pay for it who pass the cost onto us) Feed-In Tariffs for renewable energy producers to get money into the sector. Making renewables viable by subsidies to install costly new technology is meant to be the way to attract research and development money. This R&D then should provide ways of lowering the costs in the sector thus making it economically viable as a stand-alone means of energy production.

However, the electricity being produced is sold at a paltry few pence (3.1p typically) per unit, compared to an average of about 15p or so that we pay whoever for the juice to power our lights. The Government could vastly reduce the amount that gets paid out in subsidies (and therefore gets passed on to us) if it made the system pay small producers fairly. The logistics are more complicated with electricity storage and distance for electricity to travel being key concerns, but it is workable. There is just no appetite for it in the big 6 - it will provide real competition and make them stop fixing their identically artificially high prices. There won't be real competition in price until the market is properly opened up. 

So, Government intervention seems to be the only real option here. Well I'm sure npower and the rest are quaking in their boots at the toothless Ofgem and likewise for Vodafone and Ofcom. I'm not convinced anything can come of it, so seeing as we're in the realms of the unlikely, I have another suggestion…

We are constantly told (lied to) by our mobile and energy providers that they are doing the best they can to get you their utility at the cheapest price possible. They are at pains to point out which of their million tariffs suits you the best (seeing as we can all be pigeonholed). Yet when it comes to renewal it seems it is always cheaper elsewhere, often even on a different tariff within the same company. So if these companies really mean it, put their money where their mouths are. I'm convinced they live off incorrect tariffing. Unless you never put a foot out of line and remain in the very small bounds of your tariff, you get stung; be it having to call 0845 business numbers (we've been here before) which are never covered, or having to put a wash on in the middle of the day, rarely will you not get charged for going over and also have to pay extra for a utility limit you didn't completely use up.

If these companies really want to help us, why not abandon getting us to choose from the myriad of tariffs but pleasantly inform us each month which tariff they put us on - the one that came out cheapest for that month's usage. So, the month where your office phone line goes tits up and you use 6000 minutes on your mobile, you don't get a huge bill; you get the unlimited calls plan, but next month when it goes back to normal, you're back on 'penguin' or whatever they call a normal usage plan. I know that someone will point out that it's not in the utility companies' best interests to do that, but they can't have their cake and eat it.

If they want to be able to advertise that they're trying to help, then make them use my plan. Let poor old granny warm her cockles over the winter freeze without having to bankrupt herself, and not have to pay the same rate for lots of energy through a milder than expected February. It is clear enough we can't predict the weather or the markets, why must we insist that everyone predicts how much of each utility they are planning on using? If however they don't want to be honest and actually help us lower our prices; if they wish to say they keep their tariffs complicated and narrow to profit from our inability to stick to them, then make them drop the sanctimonious 'here to help' bullshit and just say they're 'in it for your money - trying to keep you just rich enough to afford to stay alive and heat your home'...

Human Rights and Wrongs 2: Misjudgement Day

Well it seems as good a time as any to roll out some more grumpy misgivings about 'Human Rights', seeing as Mrs May has put them front and centre with her conference speech. Yesterday saw a storm re-emerge over the interference in British law of the European Convention on Human Rights (ECHR or Convention); Article 19 of which created the unambiguously acronymed European Commission of Human Rights (ECHR - or Commission) and the European Court of Human Rights (ECHR - or Court). Actually more specifically the Home Secretary was talking about the Human Rights Act; the 1998 British legislation codifying into British law pretty much word for word, the main articles of the Convention. Now we've got the difference between those lot sorted, we can move swiftly on...

I've blogged before (here and here in the most part) about human rights. I have long promised some more on the matter, but I always tire at the sheer enormity of the task ahead and choose the easy route and shout instead about people who engage their handbrake at traffic lights and those who queue at passport control with their passports buried deep in their bags. They're easy wins you see. Now Theresa May's speech talked in part about amending British laws to deal with those foreigners who come to Britain, commit crimes and then use aforementioned legislation to remain in Britain and avoid deportation. I'll talk about that today, but also the wider scheme of things - what essentially are human rights?

Simply put human rights are those things that one has a right to by being human. They are the codification of what is considered morally to be owed to a human by his very existence. Unsurprisingly we see the right to life, the right to liberty, the right to freedom of speech for example, as basic human rights. They are all by definition generic - they apply equally across the spectrum of humanity; to tribes in the depths of the Amazon, workers in China and the inhabitants of Pratt's Bottom in Kent.

It is one's humanity alone that places them in the Venn diagram circle marking out those to whom human rights apply. It is not belonging to one nation or another, nor being part of on political system or other. So, we should not view rules of said nations or political systems as existing on the same level nor should we do the same with prevailing social norms. They come at a sub-layer of humanity; that is, human law is an absolute foundation on which other systems of law may be built. Those systems may make constitutional law to enforce human law or indeed derogate from it, but that does not alter the ultimate truth of a human right.  

I go into such rather confusing detail because 'human rights' have been perverted in their meaning, certainly in Britain to include some quite ludicrous things. Hereafter I hope to look at a few human rights and wrongs issues, both trends and particular cases. There will be some overlap from case to case so bear with me. This is going to be a long one…

Let us kick off with voting; one of several issues concerning prisoners where the Government has fallen foul of the Court. You can guess where I stand on this one. Being human has nothing to do with voting. Voting is a function of a Governmental system. A Governmental system is a layer apart from human law.

If you live on a desert island on your own (with presumably one luxury, the complete works of Shakespeare and some dubiously chosen music) you are human and should be afforded (for example) the protection of human rights to life, free speech and peaceful assembly if one can assemble a crowd of one. You have no human right to vote though. Being allowed to vote is down to the law of the land - it is a constitutional right, not a human one, and there is no constitution of which Robinson Crusoe is aware. The constitution can say what it likes, as long as it is not diminishing the rights as laid out in the Convention. Article 17 states "Nothing in this Convention may be interpreted as implying for any State, group or person any right to engage in any activity or perform any act aimed at the destruction on any of the rights and freedoms set forth herein or at their limitation to a greater extent than is provided for in the Convention." Since disallowing prisoners the right to vote is nowhere to be seen in the Convention, Article 17 has not been breached.

A prisoner denied the right to vote loses not a human right but a constitutional one. The constitution offers certain privileges to its law abiding citizens, it simply reserves the right to revoke these privileges should other areas be breached. It's like having your membership of the golf club rescinded for widdling in the plant pots. You haven't broken the higher law (of the land) but you have broken the club's narrower rules. That analogy simply transfers up one level from constitutional law to human law.

There is a similar story with internet connection, satellite television and other such luxuries that some and indeed many (morons, who unfortunately probably have the right to vote) now think qualify as human rights. They are not human rights, they are niceties afforded by increasingly more people in today's technologically developing society. The fact that more and more people consider them base or core amenities and products as opposed to luxuries is neither here nor there. The zeitgeist has no effect on human law. The man on the desert island must still be protected from false imprisonment but it is not necessary under the Convention for him to be given a 10mb internet connection and Sky+. When you get back to the bare bones of the Convention, it offers none of these things that are claimed by many. It is a worrying sign though of the mood of entitlement as opposed to earning that surrounds us today.

The problem, of course, is in interpretation.  There is even an Article to cover that - Article 18, which states "The restrictions permitted under this Convention to the said rights and freedoms shall not be applied for any purpose other than those for which they have been prescribed." People constantly misinterpret Articles, or seemingly deliberately ignore subsections of said Articles. As Mrs May pointed out yesterday, Article 8, the one used to spare deportation on the grounds of right to a family life (and a cat) has one such subsection. It mandates respect (we'll come back to that) for family life. However, it qualifies it that this can be waived if it is "in accordance with the law and is necessary in a democratic society in the interests of national security, public safety or the economic well-being of the country, for the prevention of disorder or crime, for the protection of health or morals, or for the protection of the rights and freedoms of others."

Many of the Articles are similarly qualified - Article 9 on freedom of thought, Article 10 on freedom of expression, Article 11 on peaceful assembly. They all allow the waiving or breaching of the human right they outline if it is in the interests of public safety, prevention of crime, protection of health or morals etc. Now these are very wide-ranging caveats. The right to respect for a family life is obviously intended to be waived if it means keeping a dangerous man in the country (public safety), or a known serial criminal (prevention of a crime). Indeed under the protection of health or morals one could justify removing someone to maintain the moral fibre of the country - it could be argued it erodes the moral fibre of a country when a foreign convicted killer is allowed to remain in the country he has done nothing but abuse. This is quite important as there will be a counter argument to the 'public safety' argument for released criminals who supposedly have paid their debt and are rehabilitated. 

Radical preachers who spew forth hatred and incite violence against this country are catered for too. Article 9 amply covers that. The caveats are there, they are just being ignored. Cases of burglars being killed by homeowners who have discovered their nefarious activities and feel threatened are covered under Article 2. It states that "Deprivation of life shall not be regarded as inflicted in contravention of this article when it results from the use of force which is no more than absolutely necessary: (a) in defence of any person from unlawful violence". However, we make a big song and a dance about the rights of the burglar as if that caveat did not exist. Likewise I went through at great length here about privacy versus freedom of speech. Clearly there are times when Articles will be on both side of an argument, and that is when common sense and the application of caveats must apply. 

Furthermore, when people claim a right to a family life, they misquote the Article in question. As I covered here, it is right to respect for family and private life, not a right to family life or privacy themselves. Common sense dictates that someone wilfully committing crimes knowing if caught he would face extradition shows little or no respect himself for his own family life. He places it in jeopardy himself - why would a court have to do more than he would? This reading of the Article is just in addition to the caveat which should be more than enough to see the human right lawfully waived.

Likewise, those who claim they must be given the right to have a family whilst in prison are wide of the mark. They have only the right to respect for their family life. Again, a respect they have totally failed to show themselves, buy putting themselves in a situation where they may be unable to have a family life. They clearly give up their right to respect for their private life - we lock them up in prison - why do people take umbrage at the family part of the same article? They have various constitutional liberties removed by their breaching of constitutional law. Their human right is to respect for their family life, not for a family life. A private and family life is what law abiding citizens get. Those rights are removed by the caveat for among others, protection of morals, and the fact that common sense shows the criminal has himself shown nothing but contempt for his own family life or chances of it.

It could be said it boils down to the fundamentals of imprisonment. It is for the protection of the public that people are imprisoned and for the punishment and rehabilitation of the prisoner. Without punishment there is unlikely to be recrimination and subsequent rehabilitation. If we waive the removals of any freedoms, the deterrent of imprisonment is removed to the detriment of society - without deterrent crime will go up, clearly not in the interest of public safety. Therefore it is legal to waive various human rights under the protection of society. Not least, it just makes sense.

It is clear to me that whilst well-meaning, the Convention (and derivative HRA) is too loosely written. Despite the wording being there, far too often the judiciary (British and European) misinterprets its intent (contrary to Article 18). No-one can surely think that the Convention is not often being used for purposes other than that for which it was intended? This was a convention that was formed in 1950 against the backdrop of the inhumane treatment meted out to so many humans in WWII. It was never meant to stop lawful countries deporting dangerous terrorists.

Not only is there the issue with misinterpreting Articles and ignoring caveats, but also there is no framework to judge one article against another. Classic examples are of the foreign radical clerics or terrorists who despite being ordered deported under the caveats for public safety and non-incitement of racial hatred are given leave to remain on the grounds they might face ill treatment in their home countries (against Article 3). Perhaps they should have thought of that before alienating yet another country? Surely when a conflict of Articles arises, there should be legislation to show the balance must fall on the side of the righteous not the sinner?

So where do we go from here? A British Bill of Rights is a start, but it will have no effect whilst a European Court using the Convention as framework is a higher authority.  Some real direction and leadership within the judiciary would be a start, but ultimately it must be combined with the rescinding of the surrendering of Sovereign power to Europe. Seeing as it would kick up quite a brouhaha to remove Britain from judicial control of Europe, you may as well remove Britain from the other economic and legislative oversight they have over us. In for a penny, in for a pound. As nice as that may sound, it won't happen whilst there is a Coalition Government, and is only a possibility under a strong Tory majority Government. Not only does that look unlikely given the rate of economic recovery, but even with it, is there the appetite for such a drastic move? So for now at least, it appears that moaning about it is the best we can do. We'll leave the referendum on Europe for another day...

Fairly Taxing?

I have also sat by this week and watched a lot of political claptrap being bandied about, and it was this I think that really stirred me into action (and impassioned pleas to resume blogging from all (both) of my readers). "Je ne regrette rien" - an interesting choice, when asked in an interview, of personal song for a partner- and point-swapper who has gone back on more vows in his manifesto than in his dissolute marriage. I refer, of course, to Chris Huhne, a man who can pour forth pointless illogical drivel like an extra from One Flew Over The Cuckoo's Nest. His comments in particular piqued my anger this week with his non-sensical economic codswallop on taxation.

It shall not have passed you by that this week has seen the Lib Dem bandwagon (perhaps too grand a name considering their massively reduced popularity - maybe bandtrolley) roll into Birmingham. And my oh my, aren't they pleased with themselves? It had to be expected that they would trumpet all the things they have 'forced' the Tories to do and shout from the hills about their moderating ways stopping the evil Tories throwing 'the poor' on a bonfire for 'the rich' to dance around. In top hats.

The main worrying thing is that as I have previously mentioned (here) is that this influence they lay claim to may not be that false. I just wonder why on earth the Tories feel the need to bow to an unpopular party with some 11% of public support who have a contract to deliver on the Coalition agreement? I worry that with all the talk of the 50p tax rate having to be exchanged for another tax on wealth, it might actually happen. Nobody from the Tories has the balls to stand up and reply to the Lib Dem posturing.

Nobody is willing to say "as with the majority of the Coalition Agreement, as we massively outnumber you and are the senior party, the general bias will be towards our policies". Nobody will say "stop trying to horse trade on policies like you are on an even footing", and no-one will say "we'll make our fiscal decisions based on fiscal reasons with a general bent towards our economic philosophy as opposed to your poisonous hatred of wealth". I cannot for the life of me understand why the Tories accept the posturing of a bunch of middle ground grey men who are trying to win back from Labour the half of their support that has vanished since they had to actually govern rather than write out a distinctly naive wish list of unfunded policies when in third place.

The most important point in there I think is the reasoning behind tax. I read an interesting article a few weeks back about tax policy, and the current lack of it. When we run for Government in this country it seems we are happy to set out our policies on health, education and defence etc. We explain why we have such policies. We explain what the purposes of all our proposals are. Nobody sets out a tax policy though. It is just said that we pay for x,y and z in other policies through taxation. It is just a means. It is not an end. And therein lies the problem and the one the Lib Dems are falling foul of currently.

You need to have a taxation policy - what is it there for, what are we trying to achieve through taxation, through the different parts of the system? It is more than just a money making machine. It is so vital a part of the running and funding of the country that it should not be directionless. Yet it is. That is how we get into the mess we are in now, with the Lib Dems repeatedly standing up and demanding punitively high rates of tax on 'the rich'.

I shan't get into the weeds on 50p tax again, indeed the extra tax may not be that much more of a burden on the highly paid and may actually increase tax takes (we'll see when the independent report comes out, but I doubt it is working), but that is by the by. The point is that the Lib Dems think that this tax, and their 'mansion tax' proposals are designed to be punitive and that that is the right way to go about taxation. They think tax is about retribution. They want all these 'fat cats' to pay 'their fair share'. Yet, as I have mentioned before, nobody is willing to define 'fair'.

It appears if you have more money it is 'fair' that you pay more and more of it in tax (to an as yet undefined limit) so it can be redistributed. Now I'm not advocating flat tax amounts, but at least that is an easy one to justify as 'fair' - everyone pays the same amount seeing as they are all at equal liberty to avail themselves of the services said tax provides: All men are equal - I reckon I could sell that one. Or we could go with a flat rate; not equal amounts, but equal percentages - then one pays relatively the same amount: Even shares of one's own wealth - I think I could sell that too. Or no taxation in a wholly private system where everyone simply pays for the services they wish to use and do not pay for the ones they do not: Pay As You Go - I reckon I could sell that one as well.

But we in the UK have none of those systems. Our system is the 'progressive' system, where the more you earn, the more you pay because of your ability to do so, and vice versa: To each according to his need, from each according to his ability. Now that's where we are now, and it is indeed a noble thesis.

However, let us not fool ourselves into thinking this is necessarily 'fairer' than the first three. It may promote a more caring society. It may redress the imbalance in wealth that fate, genetics, or just hard work has created. However, to call this 'fair' we should acknowledge that we think it is in some way unfair that some people get richer than others. We should acknowledge that inequality even when deserved, is unfair. Which, of course, it isn't.

It is not unfair that at the end of the summer the ant has lots of food for the winter and the grasshopper has none. Now it is often unfortunate that some grasshoppers will have been unable to harvest as much food as some ants. Some may be weaker, some perhaps lack the guile of the ant in his cunning harvesting processes, but some will also be lazier. Inequality is all around us, but it doesn't make it unfair.

Now I'm in favour of a progressive system. It massively benefits the richer in society for the poorer to be helped, and not just in a soothing their souls kind of way. I also believe a progressive system makes for a better society, where there are opportunities for those at the bottom of the ladder to be helped out and helped up. I'm all for that. I also think it is good for those with more to help those with less, but let's not forget that happens with a flat rate of tax too.

The problem is that 'fair', unlike 'equal' is subjectively judged, not objectively judged, therefore they are not always mutually inclusive. They are not the same things. So when someone talks about equal, we know what they mean, but when they say fair, we must insist they qualify it. People claiming this tax or that tax is 'fair' and talking about a 'fair share' have to define exactly what they consider to be fair. They cannot simply hide behind the word, for by being subjective, it by definition requires clarification.

Is it fair for someone to pay more and more of their income in tax as their income increases? I think one is on pretty dodgy ground trying to argue that. Why does your 'fair share' keep increasing the harder you work? Certainly it helps society that those who can afford to pay more do so, but let us not think it would be unfair if they only paid a flat rate. We have an exceptionally generous tax system in terms of redistribution of wealth. The tax system takes its money disproportionately from those who use fewest of the services it provides with those taxes. It takes the least from those who are the highest financial burden. It is a good system, but it should not be said that it is necessarily fair, because a system could be far less generous and easily be defined as fair.

It is not fair or unfair for the strong man in a group to carry the weaker man's load. It is generous, but the overall speed of the group will aid him in the long run. As long as he is able to see the collective benefit of his aid and he does not become somehow obliged to help so, everyone will be happy. When we start suggesting that it is fair to heap more and more weight onto him, we do him a disservice. When you take the strong man for granted and punish him for his strength, or blame him for the weakness of others you run a grave risk. He will happily carry more than his share of the burden if he can see his contribution is valued, if the extra weight is not too great, and if he can see how he benefits too.

Once we understand that we can get to grips with tax rates. Once we understand that our tax system has gone beyond the various measures of equality where it would be easy to call it fair and into territory that is obviously generous we may get somewhere. Once we understand that the economy is mainly kept ticking over by the work of those from whom we ask the most we can progress. Taxes over parity need to be explained with their economic reasons behind them - how they help everyone, including the one paying the tax. This is how you find yourself at optimum tax rates. To go into tax policy with an eye on punishment or retribution is to utterly miss the point and guarantee sub-optimal tax takes. It is biting the hand that feeds you. So no more talk of 'fair shares' please, just sound economics behind a sensible taxation policy. As the social scientist Arthur C. Brooks said, "if you think spreading money around by force seems like an odd definition of fairness, you're not alone."

London's Burning (Well It Was...)

And so I'm back, from outer space (not technically, but I have been away getting married and stuff like that). Sorry for the absence, but apparently spewing forth my bilious feelings about the world whilst sitting on a beach with my brand new wife (not that I have another, older version) wouldn't necessarily be in harmony with the loving feel-good feelings I was reliably informed were to be present on the honeymoon. So the laptop stayed at home. You may now be thinking that writing a non-commercial blog for three men and a tortoise called Alan must be a better business model than it appears if I've been on honeymoon for the best part of two months. Alas, I merely got out of the swing after a normal length retreat and have spent many days since thinking how I must blog, but simply couldn't be bothered.

Perhaps I became apathetic, or maybe there was too much to get into. So I've picked a couple of things that irked me and split them down into a couple of posts. First off, I watched London burn and then watched the police come in for more "damned if they do and damned if they don't" abuse. Yes the riots lasted a while, but we rely on policing by co-operation not by force. We have shown in war zones the world around that escalation is rarely the answer to violence. Rolling armoured vehicles down Oxford Street sends out a message that violence is expected and the ante has been upped - you bring a bigger gun, so will I. No fool would rob a convenience store in America without a gun because all the shopkeepers have them and all the police have them. Therefore all criminals have guns - it is self-defeating. Look at Northern Ireland, look at Iraq. Policing those situations is about damage limitation, restrained policing and intelligent and targeted use of force. I thought they did alright.

I then watched as "human rights groups" (read: mindless morons with no better idea than to jump on the latest fools' bandwagon) and friends of the lawless complained at the 'unduly harsh' sentences passed down on rioters. I watched them castigate judges who sentenced within the law - there are guideline sentences with discretion for increasing or decreasing sentences towards the upper and lower limits according to aggravating or mitigating factors. It's pretty simple: When say, someone causes actual bodily harm in a scuffle and is of otherwise good character and was severely provoked and shows contrition, this mitigates and so the average sentence is lowered. If someone commits the same crime but with malice aforethought and shows no remorse and rather considers this to be jolly good sport, this aggravates the circumstance, so the average sentence increases. All within the limits set in law.

Why people couldn't understand the aggravating nature of the backdrop of joining in with rioting, looting, thuggery, arson etc and doing one's best to disturb the peace, eludes me. But so does much about what people like this think. I imagine some of the sentences will be decreased on appeal, but I thought it showed how our justice system is meant to work. It was too large an incident to be prevented by police (the optimum result), so it was contained, recorded and those responsible as far as could be discerned felt the full force of the law. They weren't indiscriminately battered or shot with baton rounds. The police didn't Tiananmen Square their asses. They committed a crime, they were apprehended, they were sentenced. Like the law says is meant to happen. Next.