The Groat in Yer Sporran

You know you’re getting old when you remember what happened half a century ago but can’t find your keys. OK, so it wasn’t quite half a century ago that Labour’s Harold Wilson, after weeks of increasingly feverish speculation and a day in which the Bank of England spent £200m trying to shore up the pound from its gold and dollar reserves, devalued the pound from $2.80 to $2.40. Those were the days, eh?

Claiming that Britons would see very little difference, he also said devaluation would enable Britain (stop me if you’ve heard this one before) to “break out from the straitjacket of boom and bust economics“. He went on to famously assert “From now the pound abroad is worth 14% or so less in terms of other currencies. It this does not mean that the pound here in Britain, in your pocket or purse or in your bank, has been devalued.” Aye, right. “What this does mean” Wilson went on to claim “is that we shall now be able to sell more goods abroad on a competitive basis.

The whole thing had been triggered by his Government inheriting a “huge” deficit 0f £800m from the Tories (roughly 0.08% of the monster one Osbo is wrestling today), Britain living beyond its means—importing more Japanese televisions and unable to export enough Robin Reliants—plus a series of strikes that throttled what exports there were because the dockers led most of them. The upshot was wage inflation, Chancellor “Sunny Jim” Callaghan resigning on “a point of honour” and further dislocation of the economy through strikes as his replacement struggled impose 3.5% limits on successively greedier wage rise demands from various unions.

This is not just dusty history: it is a lesson for us here today, wrestling a bigger deficit against a background of a sluggish economy and union-driven wage unrest. As Osbo came North this week to deliver his Sermon on the Mint, it is palpably clear that the basis for his chastising speech on the insanity of any future the Scots might choose outside the UK (to be characterised by plagues, locusts, etc) was based on one key assumption: that the UK brought inevitable bounty and sunlit uplands.

His predecessor of half a century ago didn’t think so and resigned. Indeed, the whole 1967 sideslip from economic grace ushered two decades of economic decline only erased in the share-sale-fueled boom of the late eighties. With three years of failed strategy, a £1tn deficit to his name and no end in sight, ‘gallus’ may be a mild word for his hubris. This blog won’t rehearse his arguments here—Ian Bell does a pretty good demolition job in today’s Herald—but posit an equally plausible alternate scenario.

Much of Osbo’s argument is predicated on a variant of the “too poor/too wee/too stupid” argument that unionists once used when independence was still to be proved viable. But consider the problem WITHOUT currency union between Scotland and England (without Scotland  there is no UK or rUK) from the perspective of an objective English Chancellor:

  • The country would be 50m in size (plus another 10% in Wales and NI)
  • At a stroke the economy and tax income is ~90% what it was
  • While some budget expenditures drop by 8.7% (e.g. welfare) and the £28bn Scottish Block Grant disappears, the £40bn defence budget would be virtually unchanged
  • £45bn annual exports to Scotland depend on some mutually beneficial arrangement
  • Imports of £41bn from Scotland means that the £4bn trade advantage is at risk
  • Without Oil & Gas revenues of £12bn the pound would cease to be a petro-currency
  • Scotland contributes positively to the UK balance of trade (see chart below)

Bottom line to all of this is: what pragmatic English Chancellor with the best interests of (worst-case scenario) only England at heart would ignore the opportunity of securing a currency union with a partner like Scotland that is a net contributor to the stability and value of that currency?

Trade Balance of Regions (sic) of the UK, March 2013

 

UKtradeCompared to the profligate—as well as wealthy—regions around London, Scotland lives up to its canny fiscal reputation when it comes to trade and these statistics do NOT (as is the custom dahn saff) allocate 7.6bn in oil exports to Scotland any more than they credit North Sea oil to the Scottish economy.

In his Sermon, the Chancellor again made much of the volatility of oil prices, as if other income streams weren’t equally volatile over time (c.f. Irn Broon’s 1999 raid on pension funds). He especially used it to pooh-pooh Scotland’s main alternative to currency union: having its own currency. If he got out more, he might discover another small, oil-rich, northern country called Norway. It’s well known that Tories are notoriously slow on the uptake (as it says on the tin) but it’s been around for a century now and demolishes his arguments if he were only honest enough to admit it.

But, since no-one (bar the Greens) is pitching for our own currency and no-one thinks joining the Euro at this point makes much sense, an independent Scotland would want to negotiate with England to continue in a currency (only) union together. It would make the pound in all our pockets stronger. But, unless Osbo gets his head out of the sand sharpish, he’s going to find his political bias has sold the pass and his fellow Englishmen will have to thole a worse deal with us than if he wised up to the advantage being friends with Scotland offers.

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Brechin’s Revenge on Beeching

What was disappointing about the half-century anniversary of Dr Beeching’s evil œuvre “The Reshaping of British Railways” wasn’t that comment and opinion was as divided as on the death of Margaret Thatcher and pushed it off the page (political bedfellows like the Daily Mail and Torygraph were at loggerheads) but the absence of lessons being drawn. Amidst much wringing of hands that he went too far and general agreement that the UK rail network needed investment and growth, nobody seemed to have much of a business plan laying out any how or why.

After posting this blog’s comments last week, this became doubly apparent at the 6th Scottish Rail Conference at the Carlton Hotel in Edinburgh on April 16th when all the right people from the Scottish Government (including the Transport Minister, Keith Brown), ScotRail, Network Rail, contractors, SPT, freight and long-distance operators, gathered to focus on, as Mackay-Hannah put it: “Edinburgh-Glasgow Improvement Programme projects and planning, delivery of the main build phase of the Borders Railway and challenges and opportunities… during the period from 2014 to 2019.”

Broad-based topics covered included “Building a Resilient and Sustainable Railway” and “Supply Chain and Smart Partnership”, as well as the now obligatorily upbeat “Growing Rail Use: Passengers, Freight and Added Value”. All good stuff for the insider trying to run a rail business and the anorak there to mingle with kin. But, in common with the commentary that greeted the Beeching anniversary, not much in the way of strategic thinking: no-one asked what our rail is for, whether it’s fit for real purpose and—other than tacking on of some new services in no discernible priority—how it all fits.

It’s not quite as bad as the emperor’s clothes but, with virtually everyone in Scotland from anoraks to the AA agreeing we need to grow rail services not even the Government seems to be asking hard questions like those above. We seem content to let various ginger groups and political pork barrel steer much of the investment and accept that Network Rail and long-distance services fixate on the network in England, serving the demographic-driven priorities of ten times as many English living in  twice our land area.

We have yet to get a clue.

It starts with High-Speed Rail. Anyone who is anyone in rail here is falling over themselves to get it past Manchester/Leeds and up to Scotland. Quite apart from the Treasury clutching the piggy bank close on this whether Scotland goes indy or not,  has anyone done a cost/benefit analysis on this? Apparently not. Here’s a fag-packet shot:

Let’s assume HS1 to Birmingham/Midlands (£16.3bn & by 2026) is a done deal and that the £18.2bn-and-rising HS2 to Manchester and Leeds will see the light of day this century. The UK government “has calculated that capital and operating costs of £59bn over a 67-year period would outstrip the predicted revenues of £33bn from the line, leaving £26bn to be funded by the taxpayer.” (F. Times)

Cross-border rail traffic is undoubtedly successful and growing but let’s keep things in perspective. Whether 25m English living north of Birmingham do make an economic case for HS2 or not, what chance MacHS? The problems taking any HS3 to Scotland’s Central Belt seem daunting, even if the finance isn’t. How can 5m people currently taking only 3.5m journeys each year, paying £100m between them to cross the border justify a third step? High Speed rail comes in at £130m per mile to build. Even ignoring the nightmare geography of Shap and Beattock, that means £56.3bn to connect Manchester with Glasgow. The conference discussed this project as if it were feasible; it’s fantasy.

Do the sums: get real.

Not only would MacHS be blinding white as an elephant but we haven’t been very good with the money we’ve spent so far on our spiffy new services internal to Scotland that everyone’s so proud of. Not to put any of the projects down or to imply they may not provide a self-funding component of our rail network long-term, but compare those projects already completed and committed against Portishead-Bristol costing £3.8m per mile and an entire new HST station in Leeds costing £161m

  • Stirling-Alloa cost us £6.7m/mile (predicted use: 150k; actual use in 2012: 401k)
  • Borders will cost £10m/mile (predicted use now 640k, down from 947k)
  • Airdrie-Bathgate cost £12m/mile, (not all new track; now 200k @new stations, plus 300k more @existing stations between Central & Waverley)
  • Waverley station revamp cost £58m for 3 new platforms (16.2m to 22.6m passenger growth in the 5 years that the project has run)

On top of these major (i.e. 7-figure+) projects, there have been several reopened stations, most recently Laurencekirk and Conon Bridge but, welcome though they are, none can be considered a strategic step forward in rail improvement and usage.

What we have had—and is not to be sniffed at—is a steady investment in rail in Scotland that has increased and improved both facilities and services. But, as you can see for the above list, we may have paid rather more then we should have and have swept few people from their cars and onto rail, except those who discovered they now had a station close to home or work or both.

Because some of the choices made have been questionable at best and cuckoo at worst. For thirty years, ECC has been building Edinburgh Park and the Gyle and yet the stations so named are each a half mile from the centre of their namesake and neither have fast services stopping, if only at commuter times. The ‘fast’ Waverley-Queen Street services stop at Croy, Falkirk High and Linlithgow but only the last has bus connections worthy of the name. There is much investment and service revamp on the eastern side of Glasgow but all of it is for slow commuter services, including the Helensburgh-Waverley service via the new Airdrie-Bathgate link. Because it has 21 stops between the cities, it takes longer than the infamous ‘Fauldhouse, Whorehouse & Boot Hill’ line’s 90 minutes.

Where, in short, is the beef?

Why are there NO premier services? Is it any wonder that little use is made of the business class (on those trains that have them) or that ScotRail is given major grief for being so tardy in supplying WiFi and sockets. In Germany and France, major amounts of business travel are done by rail, business even being conducted en route. Since we won’t get HS3 (see above) why has nothing been done about our internal express routes? Prime contender for such has to be the the Glasgow-Stirling-Perth-Aberdeen corridor, which is currently a 3-hour ordeal in eternally crowded and poky Class 170 3-car sets. The 145 mile journey can be made at least half an hour faster by road—not least because of the £1bn+ already spent on dualling the M80, A9 and A90.

Let’s contrast this with Cardiff-London (also, co-incidentally, run by First). They seem to make the same distance in just over 2 hours but in the comfort of a 9-car 225 train with restaurant, extensive first class and WiFi, such as we only ever see on East Coast. We should focus on this scale of service for our ‘backbone’ line.

Trains out of Glasgow currently take an hour to reach Perth, 60 miles away. It then takes them another 70 minutes to cover the 40 miles to Laurencekirk and 40 more minutes to cover the final 30 miles to Aberdeen. A speed of 35 mph is that of a bad train, not an express. Examine the 150 miles of track and there are several choke points, the three main ones being the Cowlairs tunnel, the tight curves east of Perth and (worst of all) the five miles of single track south of Montrose. The first of those needs to be fixed to improve all services in and out of Queen Street as part of EGIP, so that’s in hand.

The other two can be solved by a radical idea: reinstate the Caledonian Railway. Part of Beeching’s folly was to rip up 35 miles of the old main line from north of Perth to Brechin and think that the secondary link via Dundee, with its myriad stations, twisting track and several grades can sustain fast service. From Kinclaven, there are 35 miles of track to reinstate until it regains the existing line east of Brechin. At the standard rate of £4m per mile, an investment of  £140m (half of Borders rail costs)  could cut this section journey time to under 30 minutes and put Aberdeen within two hours. A further £10m could add a fleet of second-hand Voyager 5-car trains—although those leeches the Roscos make actual train purchase costs as obscure as they can so real price is fuzzy.

Whether it is cost-effective to reinstate stations at Coupar Angus, Forfar and Brechin is a separate analysis—as is whether 9- car 225s (like East Coast’s) or 5-car Voyagers (like Virgin’s) should be used on the route. But there are currently 40,000 people flying from Glasgow to Aberdeen, most of them business travellers paying £270 for booking a week ahead and £330 for that day. Move 25% of them onto rail by offering tickets at half that and you have a £1.5m revenue boost for the line before you even start to consider on-board catering profits.

Additionally, the A90 south of Aberdeen carries almost 2,500 vehicles per hour each way at its peak, which translates into 2m each year. Many are not cars or not Aberdeen-bound but at least half are. If 10% were shifted onto rail (and offering half-hour improvement vs a half-hour penalty for taking the train is a big incentive) you would add another £6m revenue at current average fare. Add the two together and you could fund the borrowing of over £100m of the £150m necessary to make the step change feasible. £50m shortfall from the public purse is £10 per head—a lot less than the £200 each of us paid for trams.

It is an axiom among English train operators that long-distance lines are where the profits are and they consider London-Birmingham’s 105 miles as ‘long distance’. Yet Scotland seems determined to throw money at pork-barrel projects that favour this or that MSP’s back yard. For a real future for Scotland’s rail through the knock-on effect of such a service a key service, that tenner would buy us all:

  • 2-hour journey times Glasgow-Aberdeen (1-hour Perth-Aberdeen)
  • 1-hour frequency, with stops at Stirling, Perth and Brechin as interchanges
  • Similar times from Edinburgh if EGIP allowed Edinburgh-Stirling non-stop express
  • Three new stations at towns likely to sustain them
  • New Angus Circle line Perth-Dundee-Arbroath-Montrose-Brechin (Interchange?)-Forfar-Coupar Angus-Perth. (No longer required to pretend to be fast)

Not only would the grossly underused stations at Stirling and Perth receive a massive boost (as would the cities themselves) but the services radiating out from them would offer faster access to Scotland’s other five cities. There is nothing wrong with piddling about with dualling parts of the Highland Line but its 120 miles are never going to give a faster service than air, nor its passenger density justify much. By all means let’s link Leven back onto the network because the track’s already there, as it is at Grangemouth.

But, before we go stupidly dissipating another £1bn on ill-considered transport idiocy like the Edinburgh trams or overpay for projects because we let them drift for a decade, like the Borders Rail, let’s put Scotland on the business map by running a railway that means business and not just what clapped-out 2-car dinosaur ScotRail thinks will do for that day to fulfill its franchise obligations.

A tenner a head for revolutionising our railways seems like a deal.

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Gung-Ho Kim Jong

Despite all that the press do to stir up flagging sales, the world is a pretty peaceful place; those parts of it that are not tend to blight mostly themselves. Readers may dispute this, citing some conflagration or other that is always filling headlines. Twenty years ago it was Iraq, then a disintegrating Yugoslavia, then Iraq again, then Sierra Leone, then Afghanistan, then Libya, now two years of Syria.

But, ’twas ever thus. It’s just that, fifty years ago, there were far fewer countries and you never heard of their tribulations—16th century Mughal or Siamese/Burmese Wars meant little to contemporary Europe. It was only when Abyssinia got the League of Nations dander up in 1936 that international news rated much coverage in the newly widespread media. Only rarely do these more modern brush-fires justify concern for the general peace of the world.

Once such wide concern was more common. Anguish over the Cuban missile crisis, Arab-Israeli wars, Dubcek’s ‘Prague Spring’ or Angolan civil strife was genuine because all were avatars and/or test beds for the main cold war proponents and their weaponry. Each time, the road could plausibly have led to Armageddon. But, ever since the Berlin Wall was breached, such brief inside tracks to oblivion have been rare—until now.

The varied tantrums recently thrown by North Korea hark back to those troubled days. Their rhetoric echoes that of China when the US was fighting in Vietnam or the Soviets when US-backed Israelis cleaned their Egyptian protégé’s clock in the Six-Day War. The situation has all the hallmarks of a tinderbox about to ignite: repressive, a militaristic régime; an unbridled but inexperienced young dictator; grinding poverty from sustaining a bloated military that requires external enemy distraction á la Orwell’s 1984; still-glowing embers of a sixty-year-old war with the South that has never been resolved.

Both South Korea and the US appear to take North Korean threats seriously because more active, action-ready troops are deployed there than anywhere else in the world. Whereas the US and UK each have around 7 per thousand populationunder arms and China barely 1 per thousand, the KPA, including the Worker-Peasant Red Guards number some 380 per thousand—everyone of military call-up age. ROK has around 20 per.

The closest comparison that has had a recent military outing was the 1.2m strong Iraqi Army of 79 divisions that in 1991 (and again a decade later) was surgically annihilated in five days by a force a fraction of that size that knew how to exercise its overwhelming superiority in air power, intelligence, command structure and equipment. And that was on the offensive. Although nothing should be ruled out, it is hugely unlikely that South Korea would invade the North unprovoked and so any likely scenario is a re-run of 1950 when the North invaded the South.

The much larger 9m-strong KPA  deploys infantry, armour and even artillery divisions—some 153 in all. Such a force demands serious study how/if it is to be defeated, especially as Chinese intervention in the original Korean War demonstrated very effective mass infiltration and suicidal human wave attacks, able to throw the US Second division into disarray. Many generals spend their time studying how to fight the last war. Wave attacks were shattered only on the tight training, slick logistics/support and sheer jarhead determination of the First Marines around Chosun reservoir.

Given that the military is effectively the only career open to ambition in the North and that the Dear Leader is, at best, a puppet of a military junta (c.f. Burma) or, at worst, a tantrum-throwing 27-year-old who has known no constraints but those with which the West hamstrings ‘his’ country, calling the situation ‘volatile’ may be an understatement. The question is: will the KPA generals risk their livelihood to pursue their rhetoric into a shooting war? Even if they can’t build rockets to seriously threaten anyone, given their scale of isolation, commitment and paranoia, the answer has to at least be ‘possibly’

Should they have done their homework objectively and well, the answer ought to be ‘no’. Not only will they realise that Chosun and Iraq were no flukes but how fragile sheer numbers—even of armoured vehicles—are if they lack technology. The graveyard of the Republican Guard armour was in the swirling dust on the Basra road when the infra-red sights of VII Corps decimated phalanxes of blinded Iraqi T-72. But, if they do launch everything they have out of sheer delusion and bravado, what then? Pivotal in their consideration should be that their one friend China, rapidly modernising on trade with the West, have little interest in upsetting peace’s lucrative apple cart.

There is a case to be made that the US/ROK forces could be caught short, despite a justifiable belief in their own superiority. History provides rafts of examples where a palpably superior side believed it was all bluff and an entire generation of venerated generals found egg all over their faces as well as their hats. Some recent lulus include:

  • Sedan 1940. A 100-division-strong French Army trusted in élan, the Maginot Line and more tanks than the Germans. As they swung into Belgium to block the German advance predicted there, Guderian and Rommel fell on their pivot at Sedan with seven panzer divisions they had sped through the ‘impassable’ Ardennes; they were at the Channel and Dunkirk before anyone could respond coherently.
  • US East Coast 1942. Despite considerable RN advice & intelligence, a smug US Navy didn’t believe U-boats could operate in their waters and bet on aggressive hunting groups to find and sink any that dared try. The result was six months of the worst Allied shipping losses of the war (in sight of a brightly-lit coast) that came near to postponing the invasion of Europe through huge tanker losses in the Caribbean.
  • Sinai 1973. Having dismantled three Arab armies in 1967, the IDF—probably the most fearsomely effective small army in the world—convinced itself that neither the Egyptians nor the Syrians would dare attack. Egyptians jumped the canal in force and hundreds of Israeli tanks and jets were lost against SAMs and SLMs that had been cleverly held back for just such a riposte.
  • Korea 1950. Sixty years ago, a smaller, more primitive KPA swept across the 38th parallel to pen both ROK forces and their ill-prepared US allies into a perimeter around Pusan in short order. Only massive air reinforcements, combat trained troops and a gutsy amphibious landing at Inchon recovered a near-disaster.

It is devoutly to be wished that the Commander UNC/CFC/USFK, General Thurman and his staff are on the ball about the situation, as well as intimately familiar with such humbling incidents as given above—especially the last. But his photo fails to inspire confidence. ROK is faced with an irrational and increasingly isolated country of 20m fanatics who may see quick and glorious death preferable to gradual starvation: their military saviour’s haircut looks like a punk nihilist mohawk.

Not as Photogenic as his Sister Uma? General James D. Thurman

Not as Photogenic as his Sister Uma? General James D. Thurman DSM w/ 2 Oak Leaf Clusters & 21 Other Medals

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Face it: Thatcher Was Right

Opprobrium has been poured on Maggie Thatcher and all her works, especially in Scotland. This last part is understandable because, whatever her vision and commitment and however you view her legacy, she was neither subtle nor broad in her understanding: not only are the Scots bolshie but their culture is as far from the C-of-E-Home-Counties convention that was her mantra as it gets in these islands.

And so you can pick any number of her works that stuck right up Scottish nostrils as if the hectoring arrogance perceived were intentional and, even, the main motivating factor. The phrase ‘Sermon of the Mound’ encapsulates both perception and effect from just one such incident. The Scots were not alone in this: Scouse public service workers and Yorkshire miners were both as incensed and took action to thwart her ideals.

But the Scots have more than just cultural divisions to gripe about. Our North Sea oil money was used to fund much of what she did, rather than benefit the locals (c.f. the Norwegian Oil Fund); our simmering outrage at Polaris was replaced by our simmering outrage at Trident; we were stuck with the Poll Tax before anyone else had to thole it. Worst of all, Scots identity was entwined with horny-handed heavy industry and mass disintegration of indigenous coal, steel, aluminium, car, shipbuilding industries hit not just wage packets but our social structures, pride and self-belief.

Irrespective of who had won the 1979 election (recently broadcast on the Parliament Channel and no foregone conclusion at first), the eighties were going to be tough for Scotland. The alternative to what we actually got would have been more Callaghan or Foote from Labour with the worm of the breakaway Social Democrats burrowing at their soul because they were so unreconstructedly stupid as to think that Britain needed more government control.

Now, even had Labour’s government intervention in industry not have provided such a do-your-head-in crop of union-demarcated, overstaffed behemoths as British Leyland & Steel & Rail, etc; plus the energy ‘companies’; plus post & telecomms; plus the docks; plus most buses; plus water; plus UCS; and…and…and, then the sixties & seventies had seen a roaring increase in industrial action and outright strikes. These had pushed up some wages but that had pushed up inflation, which devalued the pound and made imports expensive. $4 per £ dropped to under $2; DM10 per £ dropped below DM4.

However well intentioned most Labour members might be to make society more egalitarian and provide support for our vulnerable, they were trying to do it on what was effectively a shrinking economy. So reluctant were people to save and invest that interest rates over 15% were offered as incentive. (This didn’t get you much farther when inflation under Labour hit 27%). In the 15 (mostly Labour) years between 1964 and 1979, GDP per head nominally increased by 760%. Take out inflation and real GDP actually increased by only 50% or about 3% per year over a period when automation and efficiency should have quadrupled that.

Indeed, real GDP didn’t regain its 1979 levels until 1983. What were Labour’s ideas to do better than that? They saw their prime goal as to “get Britain back to work”. Their 1983 Manifesto put the following front and centre:

“Mass unemployment costs the country £15 billion, £16 billion, £17 billion a year, astronomic figures never conceived possible before, and they move higher still every month. Mass unemployment is the main reason why most families in Britain, all but the very rich, are paying more in taxes today than they did four years ago.”

This sounds eerily familiar to modern ears. Labour wanted to use NS Oil revenues, substantial borrowing and “the billions saved from dole queues” to fund an Emergency Programme that included much from Labour manifestos from the previous two decades, among which were:

  • “Prepare a five-year national plan, in consultation with unions and employers. Back up these steps with a new National Investment Bank, new industrial powers, and a new Department for Economic and Industrial Planning
  • Repeal Tory legislation on industrial relations and make provision for introducing industrial democracy.
  • Begin the return to public ownership of those public industries sold off by the Tories.
  • Halt the destruction of our social services and begin to rebuild them, by providing a substantial increase in resources.
  • Increase investment in industry, especially in new technology – with public enterprise taking the lead. And we will steer new industry and jobs to the regions and the inner cities.
  • Begin a major programme to stop the waste of energy. We will stop Sizewell and abandon the Tory PWR programme; and open urgent discussions, with the unions and management in the coal industry, on a new Plan for Coal.”

There was a great deal else to demonstrate a laudable social conscience and promote state support for people (must have horrified Thatcher) but my own personal favourite that must sit badly with any Labour member with a conscience (and there are many):

  • “Cancel the Trident programme, refuse to deploy Cruise missiles and begin discussions for the removal of nuclear bases from Britain, which is to be completed within the lifetime of the Labour government.”

Other than that last, the rest of them are policies that only a socialist who had been vacationing on Ursa Minor for the last 20 years could love. It was as if the brutal decline of industry, the repeated ineffectual government intervention, the successively more extensive and damaging wildcat strikes and the bottomless demand of depressed areas for social services and benefits simply had not existed. To Labour in 1983, the answer to the social disaster visited on the country by state bureaucracy was more state bureaucracy. No wonder Gerald Kaufman called it “The Longest Suicide Note in History”.

Now, many may have their reasons for hating Thatcher but the alternative in those pivotal years post 1979 was brain-dead application of more socialist principles to a country that had almost choked on them. Major investment in modern deep coal mines had proved they still could not compete with Australian open-cast shipped in—even in the relatively strike-free and efficient Nottingham pits. Specialist car makers like Morgan and Lotus could turn a profit but the sprawling mess that was British Leyland was a Brontosuarus that had been decapitated but the tail hadn’t heard it was dead yet. Job demarcation in steel or shipbuilding was so severe that Japanese, Korean and even Norwegian yards got the orders because they built better ships faster and cheaper.

Labour was horrified that Thatcher sold council houses but millions bought them and Blair never thought of reversing the policy. Principled pacifists were horrified that she went to war over the Falklands but it boosted pride at a time when it had sunk into our boots. The Miners’ Strike brought bitterness to areas that Thatcher never understood, communities for whom the mine and the jobs in it were at the root of their being. But they were used political pawns in ideological warfare and 1997-2010 saw nothing but charity being offered as a solution to those areas damaged.

Scotland likes to think of itself as more egalitarian and with more social conscience and that is rightly seen as a source of pride. But they should not have such short memories. The magnificently self-sufficient pre-Clearance Highlanders were aggressive and brutal with others, as well as intensely loyal to their own. The affluent greatness of Glasgow was built on the slave trade and enhanced by inhuman hours worked in shipyard and factory by those living in Gorbals slums and worse. Dundee had its Jute mills; Aberdeen had its trawlermen; the carses and howes had their bondagers.

So deprivation and harsh conditions bred socialist thinking. But even Labour’s 1983 manifesto recognises that work is pivotal and that wasting human resources penalises all. Though she may not have had much of a second string to her bow, Thatcher broke the state-run-bureaucratic mould across the board by insisting the market was the best judge of most jobs. She got some of it wrong and was spectacularly immune to  human knock-on effects. But she disbursed prosperity to the late eighties and nineties that Blair was careful not to disrupt throughout the noughties. Real GDP doubled over that period.

Revile her if you will but try not to be further aggravated that she was not greatly influenced by populism. Though her methods verged on the brutal, so do some medicines when disease is well advanced. 35 years ago, Britain had a bad case of state-run sclerosis which is now largely cured (although we may have caught some loadsamoney diarrhea as a result). Her legacy is that there are no main parties advocating managing the economy in a manner greatly different from the path she forged.

Though I doubt Labour yet sees it in this light, the best way to employ people is in well paid jobs that have a future and not by keeping sunset-industry pastures alive artificially. Though I doubt Thatcher saw it in this light, the best way to do right by people through effective social programmes is to generate adequate amounts of dosh to fund them in the first place.

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Who Do You Think You Were Kidding, Dr Beeching?

Fifty years on from the Beeching Report, it is still hard to get an objective analysis of its recommendations and the impact of those that were followed. The Beeching Report recommended taking an axe to about a third of the network—5,000 miles of track, including hundreds of branch lines, 2,363 stations and tens of thousands of jobs. At the time, this was seen as draconian and, even now, it looks very like medieval medicine which sought to drain poisonous ‘humours’ from the blood, often with the aid of leeches.

His bland bureaucrat demeanour did much to incense people at the time and the scale of his proposed cuts seems brutal until you compare what has since happened to the rest of heavy industry and its infrastructure, including steel, coal, cars, shipbuilding and other segments that were seen as permanent parts of the economy fifty years ago.

Before he was drafted in to take drastic action, Britain’s railways were decades into decline. From the profitable pioneering days of the late 1800’s, railway companies had pretty much lost the plot in Edwardian time, building branch lines for which no serious business case could be made and entrenching much of the inefficiency that would eventually (and still?) compromise profitability.

Two world wars and the imperative of supporting the war effort starved railways of investment and resulted in drastic mergers in each case. Combined with a penchant for Victorian levels of over-staffing and a business plan for the future that misunderstood major changes in transport, social attitudes and demographic change, British Rail arrived at the immediately pre-Beeching point with a plethora of problems:

  • the network was bloated to an inefficient sprawl
  • services were complex, irregular and scheduled more for the convenience of railways
  • private and public motor transport were offering serious competition
  • goods even more than passengers were shifting to the roads
  • working practices were labour-intensive and invariably inefficient
  • alternate power to steam was still in its infancy
  • the ‘integrated’  company was actually a cacophony of competing organisations
  • overall strategy was driven by political more than commercial concerns.

To be sure, business sophistication and business school graduates were both rarer in 1960 than half a century later. But Drucker had written several books, operational research and systems analysis were recognised disciplines and management-driven success stories like IBM, ITT, General Motors, etc were slickly profitable behomoths. Dealing with BR’s problems would be tricky but not beyond the wit of man.

Instead, the decade since nationalisation having been spent largely treading water and losing money through a creaking network fit for the Victorian age meant that the Tory government of the time wanted a sword of Damocles to cut a swift solution. The 1955 Modernisation Plan promised expenditure of over £1,240 million; steam locomotives would be replaced with diesel or electric, traffic levels would increase and the system was predicted to be back in profit by 1962. But losses mounted and, by 1961,  were running at £300,000 a day.

Some overdue rationalisation had been done since nationalisation in 1948; 3,000 miles (4,800 km) of line had been closed; railway staff numbers had fallen 26% from 648,000 to 474,000; the number of goods wagons fell from 1,200,000 to 848,000. Clearly, more needed to be done. But, instead of a strategic review of railways and their future role and a systematic reshaping of them to more closely achieve that, The Reshaping of British Railways took a blunt, simplistic approach that would have been a credit to a Micawber-era industrial baron.

The analysis contained in the report was fair enough—a critical examination of the profitability of each part of the network that highlighted some commercial lulus, such as:

  • Thetford to Swaffham’s ten trains carried 9 passengers each & covered 10% of costs
  • Gleneagles to Comrie (via Crieff)’s 20 trains carried 5 each & covered 25% of costs
  • Hull to York via Beverley recouped 80% of costs but duplicated a similar service.

Freight was given a similar thorough going-over, with the bulk of the hopelessly inefficient goods yards at almost every station to be closed now that road freight was not just challenging but had won the non-bulk element of the business.

But where Beeching did us all a disservice was three-fold: 1) he thought because some cuts were obviously necessary and good, more cuts must be better; 2) he saw the rise of the car and lorry but didn’t see the congestion they would cause; 3) he believed that there was a freight business below trainload size.

Almost all the fuss and opprobrium revolve around the first point. Indeed, his solution would have meant no railways anywhere in the Highlands, in Wales or even between Edinburgh and Newcastle (currently the best UK train service). Some 6,000 rural miles of the 18,000 mile network and 2,363 stations were to close. And, during the 1960’s much of this came to happen, culminating in the closure of the Waverley Line in 1969. This left the Scottish Borders with no rail and no stations and was mightily opposed at the time.

The problem was that, politically, few of the closures went quietly and the news was full of protests around the country as line after line, station after station “had their services withdrawn” (in the euphemism of the time). Much of the residual venom is a folk memory of the event and its associated anger and frustration. In modern terms, the media handling was poor and the debate often focussed on another dead parrot of a station.

Sterling examples of this Iron Horse sub-species of Norwegian Blue were in my own backyard. At thirteen, trainspotting on the ECML at East Fortune, our thrills at Gresley A4s or the new Deltics blasting though with the London express were punctuated by the Berwick stopping train squealing its five motley carriages to a halt for no-one to get on and no-one to get off. Even a thirteen-year-old could see this was no way to run a railway.

But nobody seems to have done proper homework on a systems level. In a rush to get as much closed as they could, BR calculated costs by track-mile used. As a result, in 1970 they were all set to close the North Berwick service (currently among ScotRail’s most profitable). Some sharp analysis by many of the professionals who used the line to get to work proved that the incremental costs to run it (80% of its distance, it shares the ECML) were low enough to make it profitable. It was one of the first reversals of his plans that has restored a small portion of the rail network in the last half-century.

No only that, when the ECML was electrified in 1991, the case to continue that on the 5-mile single-track spur to North Berwick was overwhelming and helps explain the solid 2-way traffic (commuters & shoppers inbound, students & tourists outbound) that make it ScotRail’s nice-little-earner.

What Beeching did NOT do was proper cost/benefit analysis that included social priorities, future opportunity and (especially) the clogging up of the road new that would throw appreciable traffic back onto rail. Take the £295m (aye—that’ll be right!) cost of reinstating less than half the Waverley line. That is equivalent to a £6.5m annual subsidy if the line had been kept open since 1969 and it was already bringing in £2.2m in revenue (2012 prices) at the time of closure. Even averaging over the 44 years, that’s £4.3m each year to have run Edinburgh-Carlisle trains all that time and still be ahead financially.

Some examples were indeed basket cases and non-viable throwbacks to Edwardian times when train moguls were building lines to compete with one another. The basket case that was Edinburgh doomed any sensible suburban rail net. Beeching was right to target some of the more egregious examples like:

  • The Fife Coast line (Leuchars to Thornton via East Neuk)
  • The Vale of Devon line (Kinross to Stirling, via Crook of Devon)
  • The Tweed Valley line (Newton St Boswells to Berwick via Kelso & Coldstream)

And yet two components for the first (Leuchars-St Andrews and Thornton-Leven) are both now under consideration for re-opening and pat of the second (Stirling-Alloa) has been reinstated. In 1963, both St Andrews and Alloa were taking in over £1/2m each (today’s prices) and Leven was taking half of that. All three were babies thrown out with the Beeching bathwater. Reinstatement of the Alloa line cost £57m. Perfoming a similar calculation to the Waverley one above, that means an average of almost £1m annual subsidy would have more than covered the costs of sustaining the Alloa link.

In 1963 it would have been difficult to be clairvoyant about how rail could be turned around as a business of the next 50 years. But several hard-nosed business cases could have been made, as shown above. It was the less hard-nosed arguments of social needs and tourism that kept the Highland lines open and are now such an asset. Most of those that did close in that sparse region should have closed, although the spectacular Dunblane-Crianlarich via Callander and Lochearnhead would have been a tourist favourite and add hugely to rail tour options on the West Highland Line.

So, should Beeching be pilloried or praised? A clear case can be made for the former. Anyone with a calculator could have done the simplistic butcher job he did. The relative density of population furth of Scotland and the drastic change in our economy from West coast grime to East coast oil meant that we were proportionally hit harder: growth areas like Fraserburgh and Peterhead were sliced off the rail net, yet their line might have been humming with both passenger and freight within a decade.

Who knows how much more effective a system could have been electrified and modernised with the same money we’re now spending in reversing the short-sighted, bean-counter attitude with which Dr Beeching approached his historic task. Glasgow-Aberdeen in under two hours; Glasgow-Edinburgh in under 30 minutes; tourists flocking to St Andrews or Melrose or the Trossachs by train, maybe by a steam train called “Dr Beeching” in his dishonour—because he never seemed to understand Scots humour any more than our rail needs.

SScotRail1961

Posted in Commerce, Transport | Tagged | 1 Comment

Milli-Management

Speak to anyone who is not among the small minority with a career in politics nor among the even smaller number of their colleagues who are genuine unpaid conviction activists and you are likely to receive a pretty jaundiced view of the state of politics in Britain. And this is one area where distinction need not be drawn between Scotland and England. Just as both suffered from business stagnation and a blizzard of strikes in the seventies, so the blending of parties into the electable middle ground has created a hybrid sleekit crataur—the Rt Hon Camilegg MP—with elastic policies such as would appal Bevan, Disraeli or Gladstone (not to mention real characters like Dennis Skinner or Nicky Fairbairn).

For ever since the charcoal suit, mauve tie and hair gel was mixed up in the witches’ cauldron that and poured out to create the world of SPADs and PPSs, a level of steely eyed professionalism using every mass psychology and advertising technique available has dominated any party with serious pretentions of power. The culture of the backroom in Holyrood differs little from that at Westminster; indeed there is a pretty free flow between the two common to all parties.

An example of their egregious spin came through the door yesterday in the shape of a colourful at-public-expense report from Jim Hume, South of Scotland Lib-Dem. It’s unfair to pick on Jim because they all do it but quick analysis of the inside content shows eight photos of Jim in action that are honest (Jim ‘meets’…’volunteers’…’discusses’…etc) and four headline items that sidestep his impotence (as an opposition member or in the wrong parliament) to actually “support”…”help”…”protect” or “stand up for” as he claims.

The latest incarnation of Milli-management (definition: attempted micro-management that’s too clumsy to get it that small) comes in the shape of the South Shields by-election, caused by the resignation of the Miliband-that-should-have-been-King (David) to take up his £1/4m job in Mammon’s very own home town. Nobody grudges him the change or the money. And, since it ranks with the safest Labour seats in the country (hasn’t ever had a Tory represent it since the reforms of 1832 and George IV was swanning about Edinburgh in corned beef tartan and pink tights) there’s no danger of political upset.

So to what end this unseemly rush to control candidate selection? On April 2nd, when the timetable for the South Shields selection was announced, Labour HQ chose a ridiculously short turnaround selection processes, presenting the local party with multiple dilemmas. To become the candidate, the application had to be in within 3 days (April 5th); any hopeful must then clear their calendar at a few hours notice to get down to London for an NEC shortlisting meeting on April 6th (a Saturday), before campaigning furiously for a selection meeting on April 10th in South Shields, the successful one then dropping everything else from your life to run for the seat.

A significant number of candidates did put themselves forward for this needlessly truncated selection process – but they could fairly be seen as those in the know and with the wherewithall to take part in such a process. There were many potential quality candidates who didn’t even throw their hats into the ring because of the way the system is set up against ‘outsiders’ —i.e. real people not part of the political machine.

Of those selected, the front-runner had been Cllr Mark Walsh whose local credentials and 17 years on South Tyneside council made him seem a shoo-in, declaring “I’ve thrown my hat in the ring and it would be an honour to represent the town I was born and raised in.” But just an hour before the voting was to start at the selection, he withdrew his candidacy for ‘personal reasons’. Because of the unseemly rush, this may well be the whole story.

But apolitical outsiders (a.k.a.’voters’) are just as likely to see this as another internal party ‘fix’ that saw fellow Cllr Emma Lewell-Buck selected for dogmatic reasons such as gender equality that, while it goes down well with  party faithful, are less well perceived by the public, including women who would rather see women succeed because they are good and not because they are handed an artificial bye. Cllr Lewell-Buck may indeed have been the best candidate—but why cast doubt with a bum’s rush?

South Shields was an opportunity to do something different, to tackle broken politics head-on. Here, Labour had  latitude to be transparent about the way they went about things, a chance to do politics openly in a way that David Miliband, to his credit, had advocated. There was no hurry; no reason why proper time and consideration could not have been allowed, no reason why local amateur volunteers, who move more sluggishly then the career-impatient professionals at head office, could not be given time for proper involvement.

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One Good Reason

…why we need Scotland independent is to rid us of the flummery that takes place in the name of the people and with which the great bulk of Scots wish to have no truck. Although Scots down the ages have shown an irreverent disregard for such niceties, that venerable English institution Debrett’s helpfully prints a ranking list so that we may all know our place.

Personally, I’d rather be a hairy-arsed rebel when it comes to class and decline to acknowledge being assigned to any rank, other than by merit. I spent too long in the colonies to put up with such guff. But, for those of you who need someone to tell you your value, here is Debrett’s rank ordered (pun intended) Table of Precedent for Scotland:

  1. The Duke of Edinburgh
  2. Lord High Commissioner to the General Assembly of the Church of Scotland (during sitting of the General Assembly)
  3. Duke of Rothesay (The Prince of Wales)
  4. The Sovereign’s Younger Sons
  5. The Sovereign’s Grandsons
  6. The Sovereign’s Cousins
  7. Lord-Lieutenants of Counties
  8. Lord Provosts of Cities being ex-officio Lord-Lieutenants of those Cities
  9. Sheriffs Principal
  10. Lord Chancellor of Great Britain
  11. Moderator of the General Assembly of the Church of Scotland (during office)
  12. Keeper of the Great Seal of Scotland (the First Minister)
  13. Presiding Officer
  14. Secretary of State for Scotland
  15. Hereditary High Constable of Scotland
  16. Hereditary Master of the Household in Scotland
  17. Dukes (as in English Table)
  18. Eldest Sons of Dukes of the Blood Royal
  19. Marquesses (as in English Table)
  20. Eldest Sons of Dukes
  21. Earls (as in English Table)
  22. Younger Sons of Dukes of the Blood Royal
  23. Eldest Sons of Marquesses
  24. Younger Sons of Dukes
  25. Lord Justice-General
  26. Lord Clerk Register
  27. Lord Advocate
  28. Advocate General
  29. Lord Justice-Clerk
  30. Viscounts (as in English Table)
  31. Eldest Sons of Earls
  32. Younger Sons of Marquesses
  33. Barons of Lords of Parliament (Scotland) (as in English Table)
  34. Eldest Sons of Viscounts
  35. Younger Sons of Earls
  36. Eldest Sons of Barons or Lords of Parliament
  37. Knights of the Garter
  38. Knights of the Thistle
  39. Privy Counsellors
  40. Senators of the College of Justice (Lords of Session), including Chairman of the Scottish Land Court
  41. Younger Sons of Viscounts
  42. Younger Sons of Barons or Lords of Parliament
  43. Baronets
  44. Knights Grand Cross and Knights Grand Commanders of Orders (as in English Table)
  45. Knights Commanders of Orders (as in English Table)
  46. Solicitor-General for Scotland
  47. Lord Lyon King of Arms
  48. Sheriffs Principal (when not within own county)
  49. Knights Bachelor
  50. Sheriffs
  51. Companions of the Order of the Bath
  52. Companions of the Order of the Star of India
  53. Companions of the Order of St Michael and St George
  54. Companions of the Order of the Indian Empire
  55. Commanders of the Royal Victorian Order
  56. Commanders of the Order of the British Empire
  57. Companions of the Distinguished Service Order
  58. Lieutenants of the Royal Victorian Order
  59. Officers of the Order of the British Empire
  60. Companions of the Imperial Service Order
  61. Eldest Sons of the Younger Sons of Peers
  62. Eldest Sons of Baronets
  63. Eldest Sons of Knights (according to the precedence of their fathers)
  64. Members of the Royal Victorian Order
  65. Members of the Order of the British Empire
  66. Younger Sons of Baronets
  67. Younger Sons of Knights
  68. Esquires
  69. Gentlemen

If you struggle to cope with 70 ranks, then pity the English event co-ordinator faced with, say, a state funeral, who has no fewer than 118. There are, for example, no bishops on our list. If the Bishop of Durham heads north, must the caterer commit hari-kari with a potato-peeler for lack of guidance?

And if you—like me—balked at item 69, realising that this whole list only applies to men, then you must consider an entirely separate list that applies to women. How high-class event handlers are supposed to cope if the two should ever mix is not made clear.

  1. The Sovereign’s Daughter
  2. The Sovereign’s Granddaughters
  3. The Sovereign’s Cousin
  4. Duchess of Rothesay
  5. Wives of Sovereign’s Younger Sons
  6. Wives of Dukes of the Blood Royal
  7. Duchesses (as in English Table)
  8. Wives of Eldest Sons of Dukes of the Blood Royal
  9. Marchionesses (as in English Table)
  10. Wives of Eldest Sons of Dukes
  11. Daughters of Dukes
  12. Wives of Younger Sons of Dukes of the Blood Royal
  13. Wives of Eldest Sons of Marquesses
  14. Daughters of Marquesses
  15. Wives of Younger Sons of Dukes
  16. Countesses (as in English Table)
  17. Viscountesses (as in English Table)
  18. Wives of Eldest Sons of Earls
  19. Daughters of Earls
  20. Wives of Younger Sons of Marquesses
  21. Baronesses, or Ladies of Parliament (Scotland) (as in English Table)
  22. Wives of Eldest Sons of Viscounts
  23. Daughters of Viscounts
  24. Wives of Younger Sons of Earls
  25. Wives of Eldest Sons of Barons or Lords of Parliament
  26. Daughters of Barons or Lords of Parliament
  27. Ladies of the Order of the Garter
  28. Wives of Knights of the Garter
  29. Ladies of the Order of the Thistle
  30. Wives of Knights of the Thistle
  31. Privy Counsellors (Women)
  32. Wives of the Younger Sons of Viscounts
  33. Wives of Younger Sons of Barons
  34. Daughters of Lords of Appeal in Ordinary
  35. Wives of Sons of Lords of Appeal in Ordinary
  36. Wives of Baronets
  37. Dames Grand Cross of Orders (as in English Table)
  38. Wives of Knights Grand Cross and Knights Grand Commanders of Orders (as in English Tables)
  39. Wives of Knights Bachelor, and Wives of Senators of the College of Justice (Lords of Session) including the wife of the Chairman of the Scottish Land Court
  40. Companions of the Order of the Bath
  41. Companions of the Order of St Michael and St George
  42. Commanders of the Royal Victorian Order
  43. Commanders of the Order of the British Empire
  44. Wives of Companions of the Order of the Bath
  45. Wives of Companions of the Order of the Star of India
  46. Wives of Companions of the Order of St Michael and St George
  47. Wives of Companions of the Order of the Indian Empire
  48. Wives of Commanders of Royal Victorian Order
  49. Wives of Commanders of the Order of the British Empire
  50. Wives of Companions of the Distinguished Service Order
  51. Lieutenants of the Royal Victorian Order
  52. Officers of the Order of the British Empire
  53. Wives of Officers of the Order of the British Empire
  54. Wives of Companions of the Imperial Service Order
  55. Wives of the Eldest Sons of the Younger Sons of Peers
  56. Daughters of the Younger Sons of Peers
  57. Wives of the Eldest Sons of Baronets
  58. Daughters of Baronets
  59. Wives of the Eldest Sons of Knights of the Garter
  60. Wives of the Eldest Sons of Knights
  61. Daughters of Knights
  62. Members of the Royal Victorian Order
  63. Members of the Order of the British Empire
  64. Wives of Members of the Royal Victorian Order
  65. Wives of Members of the Order of the British Empire
  66. Wives of the Younger Sons of Baronets
  67. Wives of the Younger Sons of Knights
  68. Wives of Esquires
  69. Wives of Gentlemen
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SuperGran from Grantham

It is a rare occasion that George Foulkes and I agree but his brief in memoriam on Thatcher at Labour Hame is both measured and honest, which, bitter political enemies as they were, deserves acknowledgement. There will be a flurry of such oeuvres over the next week because there were few lives over 30 in Britain that were not affected by her. and, since she is regarded as the most socially divisive premier the UK has ever had, they are likely to fall into two emotional camps.

As a Scot, resident back home since just after her fall from grace, I am in the unusual position of living the prequel to her reign and being intimately involved in politics here thereafter—but never having lived in the country one day under her premiership, other than brief business and social visits.

Seeing her influence on the eighties through the prisms of the Economist and New Statesman, of the NY Times and the San Jose Mercury, of Tom Brokaw’s Channel 6 New and the McNeil/Lehrer News Hour, was emotive enough. But the letters and visits from friends kept me posted just how hot things were.

I left Britain in the seventies because I was appalled by the place. Four years in Germany taught me what modern life in Europe could be. It wasn’t about grey commuter-stuffed trains clacking their way to the serried rows of terraced clones that were (are?) Streatham Common, nor the Dunkirk-spirited “I’m backing Britain” to offset the economic slowdown of a three-day week. It was not our finest hour.

Outsiders looked on, appalled at the ‘English Disease” (they meant “British” but nobody outside the UK worries about such niceties) as more hours of work were lost in strikes than the rest of the planet put together. Despite a Labour government (Barbara Castle’s white paper “In Place of Strife” must be the most ill-conceived/inappropriate title ever from an employment minister), the country lurched from dispute to dispute, culminating in the 1978-9 Winter of Discontent.

Anyone observing Britain in 1979 would have regarded it as a failure: a country that had once been the sine qua non of Victorian global domination had made itself bankrupt in two world wars, lost an empire, lost its purpose and was now being shown up in affluence by former colonies and in social progress by countries it defeated in war. Worst of all, no party had a solution: the Tories had buckled under Heath and Labour under Callaghan seemed puppets dancing to union tunes. Britain’s nationalised industries were used as case studies in business schools of what not to do.

Had Thatcher not appeared on the scene, the option would have been even more insipid socialism under Michael Foot, a bright, sincere but charisma-free Labour leader, whose rambling manifesto for 1983 was brilliantly lampooned by Gerald Kaufman as “the longest suicide note in history“. Had that path been taken, the disintegration of the Austro-Hungarian empire might have been one of the more optimistic models to describe Britain’s future.

If not Thatcher, then some version of her was the dose of salts Britain needed. Having purged many of the wets from the Tory shadow cabinet after becoming leader, she brought urgently required qualities to the post of PM. Forget her lack of empathy or even understanding for opposing views: if you want to rescue a major country from itself and set a whole new course away from disaster, you need that rare figure: a visionary with the personality to persuade people to support them, a clear plan that addresses contemporary problems and the hard work and guts to see it through.

She didn’t get it right at first. There was hesitation, squabbles in the Cabinet, some clumsy handling of issues. But the right-wing, classic Tory aspects of her administration were clear from the start: not for her the Ted Heath U-turn. “You turn if you want to; this lady’s not for turning” wowed the Tory Conference, whose grass roots were always her power base.

But her true launch pad came when the Argentine junta occupied the Falklands. Decisive as ever, her conviction that they must be retaken came from the core of her crusading being—that Britain’s decline must be reversed and here was a clear opportunity for the empire to strike back. She knew it was a huge gamble and, had it failed, had half the Argentine Air Force bombs not been duds, she would have lost office and with it the chance to remould Britain in her visionary image.

But the victory’s surge of popularity—and more importantly, self-belief—from the British people empowered her in a way no PM had been endowed since Churchill at his height. And she used it: privatisation of BT, British Gas, British Rail, the power and steel industries, etc; selling council homes to their occupants; rewriting union laws and taking on the miners in a bitter strike. Controversial though much of this was and intolerable as it all was to those of socialist beliefs, another crushing election victory in 1987 endorsed (as far as she was concerned) all that she was doing.

The opening up of much of British industry to competition culminated in the ‘big bang’ lifting of restrictions on trading in and around the LSE so that ‘financial derivates’ and other such fiscal instruments created London as a global financial centre in direct competition with New York. All of these developments, unthinkable in the turbulent seventies, put more money into the pockets of a wide swathe of the British public who, after such austerity and depressed outlook, bought shares, houses, two cars, holidayed abroad and took to a consumerism they had previously seemed too demure to embrace.

It was the era of the ‘loud-braces’ broker in the City, brilliantly spoofed by Harry ‘Loadsamoney’ Enfield. Having swept pretty much all before her, Thatcher grew ever more imperious, purging her Cabinet of opponents, even telling the media that “we have become a grandmother“. For Scots, most of whom spent her reign as PM in apoplexy, decimating their Tory MP contingent yet still having to endure her hectoring “Sermon on the Mound”, this was a time of deep frustration and resentment. It became the turning point from their full commitment to the union.

Because subtlety was not Thatcher’s strong suit. She saw the Union in the black/white terms she saw everything else. She genuinely did not understand someone who saw England and Scotland as separable, any more than she understood the deep community spirit of the miners (“the enemy within”) or the pivotal social role post offices played in small villages. Despite retaining the deep affection of Tory rank and file in the shires, she was brought down by having made enemies of just about everyone in her government. It was no coincidence that the ‘grey’ (if capable) John Major who succeeded her would have fitted into the Heath cabinet she fought so hard to reform with Tory radicalism.

Most of the comments on her death simultaneously praise her achievements while highlighting her divisiveness. Feminists bemoan her poor role model and socialists speak her name on a stream of spit. But not since WW2 had there been such clarity of purpose and a will to follow it at a time when Britain had lost its way and was in need of that. And most indicative of all, three Labour governments that followed did little to undo her works. Indeed, she was no doubt pleased by their fixation with PFI/PPP.

People may not agree with this new way she forged—some argue that the big bang was a direct cause of the 2007 financial crisis—but several things are clear:

  • to continue as Britain did in the seventies was to endure further decline
  • nationalised industries had become intrinsically inefficient with time
  • coal and steel (or any industry) must be globally competitive to survive
  • pure capitalism may lead to great riches for some but poverty for many: Reagan’s ‘trickle-down effect’ is delusion; it needs balance
  • maximising a country’s GDP is not necessarily improving its quality of life
  • there IS such a thing as society
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Gobshite Macht Frei

Despite being a strong proponent of a free press, like many other Scots today, I felt insulted by Scotland on Sunday’s presentation of a low-budget political dig masquerading as a book review of Gavin Bowd’s Fascist Scotland. What should have first tipped me off is that not many serious book reviews are written by the authors themselves—that and the more distasteful mock-up ever to have disgraced the pages of the Scottish Press.

The lower image was Photoshopped from the Cover Image on Tom Devine's Book The Scottish Nation 1700-2000

The lower image was Photoshopped from the Cover Image on Tom Devine’s Book The Scottish Nation 1700-2000

As another baby-boomer, I am particularly interested in the thirties as the cauldron out of which WW2 boiled and which framed so much of our lives post-war, from rationing and austerity, through Cold War and into material wealth. Because our excessively politically correct 21st century society pussyfoots around fascism and communism as failed 20th century evils about which we do not talk, there is merit in doing what Bowd has done, which is lift up a few stones of history and see what’s crawling beneath.

Though I didn’t live through the thirties, it was my parents’ heyday. The horrors of a war-to-end-all-wars had been banished, the Depression overcome and the fatal cracks in the Empire were not obvious to any but a few. But it was a time of great political questions, not least which political model would dominate the world. Britain was still fixated on its monarchy but even that received a body blow with Edward VIII’s abdication over the Wallace affair. The US was pioneering the relatively classless & materialist western democracy that would come to dominate seventy years later.

But the great debate of the time was which of two political extremes—fascism, as evolved in Italy and Germany, or Communism, as evolved in Russia—would come to dominate all else. Both the US and UK variants of democracy seemed weak and vulnerable before muscular movements from right and left that took hold across Europe. After Weimar collapsed and the Nazis walked into power, there were many both inside and outside that country who were pleased to see a major nation, prostrated and humiliated by Versailles, pull itself up by its jackbootstraps.

The irony of the time was that the two extremes of fascism and communism deployed such similar methods of both seizing and holding onto power. The Nazi-Soviet Pact of 1939 that allowed Hitler and Stalin to cynically dismember Poland for their own ends underscored how circular the whole political spectrum had become. It’s hardly surprising than that the ideological conflict that was about to become WW2 was manifest in political movements across the continent and a constant worry to ‘weak’ democracies.

Lindbergh in the US and Mosely in Britain had considerable following that performed an amazing snaw-aff-a-dyke act, once war was declared, much as the Whites disappeared from Russia once Lenin had grasped the reins of power. Conviction is a luxury to those whose livelihood, family and even lives were not under daily threat by regimes whose uncompromising diktats left little room for individual expression.

It’s hard today to turn convention on its head and see democracy as weak, indecisive and ineffectual, while either fascism or communism had an uncompromising purity of zeal about it, whether assembling massive tractor factories as part of a five-year plan or restoring backbone and dignity to a once-proud imperial nation. Just as the BNP makes some progress among immigrant suburbs of London, so Moseley’s British Union of Fascists made headway in heavily Jewish eastern suburbs of London.

So, before any of us gets to smug and superior about the robustness of our present democracy, the number of false political starts and their cost in stability and affluence should be borne in mind as original cost and investment. Not only were differing credos acceptable in the thirties but also served as vehicles of rebellion for many of the younger thinkers of the time.

So, coming back to Bowd’s oeuvre, the simplicity of its phrasing is deceptive. It uses contemporary sensibilities to tar the people of the thirties with loaded political overtones that they themselves would not recognise. In 1933, Hitler was seen as a saviour by most people outside German, let alone inside. The idea of a nation needing military backbone after the decimation of WWI, the destructive 1926 General Strike and 1929 Wall Street Crash was both common and lauded. Whether British or Scots in their patriotism, at the time many people saw the German rebuilding in a positive light—at least until Kristallnacht and the more blatant racism brought most to their senses.

And, as the iniquities of the more belligerent attitude adopted by Hitler in marching into first the Rhineland and then the Sudetenland made a darker future clearer, volunteers for the International Brigades to fight fascism’s Spanish curtain-opener were motivated by a socialist zeal, not least because a similar aggressive acquisitiveness was not yet so manifest itself in Stalin the way it was in Hitler. Scots, particularly those sympathetic to the socialist principles of John Maclean, were to the fore in volunteering.

Despite factually correct disclaimers like “Sir Oswald Mosley’s legion of blackshirts never made great headway in Scotland“, you will not get that impression from Mr Bowd’s article, which goes out of its way to give quotes from such prominent figures of the time as Hugh MacDiarmid distinctly Anglophobic overtones and is free with such phrases as ‘nationalist treachery’ with scant substantiation.

Indeed, such evidence as exists appears to be little-known reports of fascists infiltrating such organisations as the fledgling nationalist and socialist movements on behalf of the government of the time. But such was the political kaleidoscope of the time that few were of one rigid conviction and perhaps a majority changed political allegiance in the course of the scant twenty years between the wars.

But none of this precludes a rigorous examination of our not-s0-distant history with a critical eye. If Mr Bowd’s effort is to be faulted, it is for seeing the time too much through a modern prism where both fascist and communist have become pejorative terms in the current hegemony of Western democracy—a hegemony few but the brave would have predicted at the time when such namby-pamby concepts appeared in danger of being steamrollered by either Stalin’s muscular orthodoxy from the left or Hitler’s mechanised juggernaut from the right.

The politics of any age cannot be judged with contemporary sensibilities. Both Greece and Rome carried western civilisation to new heights on the backs of slavery, brutal conquest and even more brutal entertainments in the Colloseum. The dignity of Brize Norton was an unimaginable dream to more than a million British servicemen who died building empire across five continents, including 3/4 million who were left in France less than a century ago. It verges on cheap sensationalism to judge anyone in the thirties with smug use of 20/20 hindsight after half a century of soft living when none of the generations of young men have been sent off en masse into some foreign mincing machine. For ignoring this, Mr Bowd deserves to have his knuckles wrapped.

But, co-defendant though the author may be, by far the bulk of any opprobrium for the piece needs to be heaped on Scotland on Sunday and its editorial staff. Again, this is not for publishing something of this ilk. Much though it makes anyone’s blood boil, the Scots have weathered more venal insinuations that this. Not content to fire this dubious article at the nationalist community (why is it normal to speak of such in Ulster but not here?), SoS packages it across front page of the This Week section in a provocative and vitriolic way.

In their use of the word ‘Klan’ they have already crossed the line of decency. The only time that the Scots word ‘clan is ever spelled with a ‘k’ is in the context of the Klu Klux Klan, a discredited organisation found across America’s South and dedicated t racism and white supremacy. That they choose to use several symbols from Scottish Celtic history is no fault of the Scots—who see themselves as a mongrel race and therefore have little time for racism.

But to rub in this insult, SoS steals one of the uplifting images of the independence discussion in Scotland, the backlit image, used as a the cover of Devine’s seminal book. of several young people scrambling to erect a saltire using very similar imagery to Ernie Pyle’s classic WW2 shot of US marines struggling to erect the Stars and Stripes on a hill on the bitterly contested Pacific island of Iwo Jima.

Not content with those two crass insensitivities, they photoshop the image of the flag so that, instead of a saltire, the flag they are hoisting becomes a swastika. As a nationalist, proud of Scotland’s role in fighting nazism, proud that no-one has even been seriously hurt—let alone killed—in this battle for independence, proud of our genuine democratic achievements, I find SoS’s callously flippant use of such imagery cheap, nasty and palpably undeserved.

I need only posit the scenario of any Scottish paper running a parallel article based on the success Mosely found in England, especially the East End of London that led off with a St George Cross version of the swastika. The “off-with-their-heads” outrage among the Nomenklatura Angliski would have been deafening.

The good thing is that the dopes editing S0S seem not to realise the extent to which such ‘clever’ posturing is distasteful to the bulk of Scots and blatant attempts to smear that are patently untrue seem to wind up having the opposite effect.

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Dear Leader

For all my life I have observed this bizarre time warp that is North Korea who, for all that time, have gone on as if their war with the southern half of the peninsula (1950-1953) had never ended, which technically it still hasn’t. From 1876 until the end of WW2, the whole peninsula had been a Japanese ‘protectorate’ and post-1910, part of Japan itself.

The late intervention of the Soviet Union in the War in the Pacific allowed their Far East armies to roll through much of China, Manchukuo and Korea before the Western Allies could do much about it. With Mao Tse Tung’s Communist victory in 1949, parallels to a divided Germany in Europe were divided Chinas, Vietnams and Koreas in the Far East, all of which became disparate aspects of the front line in the new Cold War.

It has never been clear the extent to which Stalin encouraged its North Korean protégé to seize the rest of the country in 1950 but they came close before a nominally UN but actually mainly US force held on around Pusan then counterattacked. This swept South Korea clear of invaders but that wasn’t good enough for Macarthur, who tried to clear North Korea too. This brought in the Chinese PLA hordes, who took things back to the original start line.

It also divided a culture even more severely than East/West Germany or North/South Vietnam, both since reunited and exhibiting much healing as a result. Whereas the South has blossomed as the developed and prosperous Republic of Korea, starting with heavy engineering and culminating in global electronic brands like Acer and LG, the People’s Republic is a homage to Stalinist belligerence from the 1930s—right down to the high-peaked Red Army caps worn by the PRNK military.

Not only does North Korea’s state directed economy achieve a bare $20bn p.a. GDP from its 25m people but it spends 25% of it on defence. South Korea’s 50m people achieve a $1.1tn GDP but achieve comparable defence capabilities on its $27bn defence budget. Where North Korea dominates is not in its technology but in its sheer size as the fifth largest armed forces on the planet, after the China, Russia, the USA and India.

North Korea delights in Soviet-style parades of artillery and rockets through Pyongyang but what no-one is sure of is whether some of the rockets are anything more than some oil drums welded together. For so long, their generals have been whipping up a frenzy of paranoid militarism, based on supposed hatred from the rest of the world that decades of escalating rhetoric have left them painted into a diplomatic corner of either taking some form of military action or risking the political house of cards collapsing in humiliation.

PRNK new KN-08 missile during a military parade in April 2012

PRNK new KN-08 missile during a military parade in April 2012

The effective King of Korea, 28-year-old KIm Jong Il took over from his father who had taken over from his grandfather in the bizarre concept of a communist dynasty of “Dear Leaders” but the true power lies with the military. There is little doubt that if they could nuke American, they would. But every attempt they have made so far to build a true ICBM that could reach even Hawaii has failed. No-one questions that they have rockets capable of reaching that far; whether they are advanced enough to squeeze a heavy and complex nuclear warhead is the question.

If a shooting war starts—and the chances of this rather than a nuclear strike seem higher—it would result in a bloody land war, probably reminiscent of 1950-53 in its to-ing and fro-ing. South Korea should hold the North’s masses with American help for the same reason that ‘shock and awe’ did for the much larger Iraqi forces in the 2nd Gulf War. PRNK forces are many but generally equipped with obsolete weapons and almost no chance of gaining air superiority, on which conventional 21st century warfare pivots.

It’s hard to see how the PRNK generals would not be smart enough to see that, massive though their forces are, they would start at a tactical disadvantage, lose the war and be collectively out of a job in the smoking ruins of an even poorer country. But such are the self-reinforcing delusions of a closed society that many come to believe their own rhetoric. And, if it were all to go to Hell in a handcart, their Leader could indeed turn out to be a very Dear one for the impoverished 25m, virtually all of whom have endured starvation levels of poverty to sustain his family’s paranoia all their lives.

Estimated Ranges of PRNK Missiles (D. Cameron: please note)

Estimated Ranges of PRNK Missiles (D. Cameron: please note)

For anoraks interested in objective evaluation of PRNK military capabilities/Orbat, the following is extracted from the International Institute for Strategic Studies web site:

Pyongyang’s order of battle is equivalent to approximately 150 active duty brigades. That includes 27 infantry divisions, as well as some 15 independent armoured brigades, 14 infantry brigades, and 21 artillery brigades. North Korean forces are heavily dug-in with more than 4,000 underground facilities and bunkers near the DMZ and an estimated 20 tunnels dug under the DMZ, of which four have been found. There are also more than 20 Special Forces brigades, totaling about 88,000 troops, which could be deployed by air, sea and land to disrupt US and South Korean combat operations and attack civilian targets.
North Korea’s armoured forces are estimated to include some 3,500 main battle tanks (MBTs), 3,000 armoured personnel carriers and light tanks, and more than 10,000 heavy-calibre artillery pieces, many of which are self-propelled. The MBT force primarily comprises older T-54/55/59 models, but includes some 800 indigenously produced T-62s. Of the estimated 10,000 or so artillery pieces in the North Korean inventory, a considerable number are pre-deployed, in range of Seoul; additional artillery could be moved forward to fortified firing positions at short notice.
Of particular concern to Seoul are Pyongyang’s 240mm multiple rocket launchers (capable of simultaneously firing 16–18 rockets), its 152mm and 170mm towed and self-propelled artillery pieces, and its mobile FROG systems – all of which are capable of delivering chemical and biological agents as well as conventional high-explosives. In addition, the ground forces have about 7,500 mortars, several hundred surface-to-surface missiles, 11,000 air defence guns, 10,000 surface-to-air missiles, and numerous anti-tank guided weapons.
The North Korean air force possess some 605 combat aircraft and is organised into 33 regiments: 11 fighter/ ground attack; two bomber; seven helicopter; seven transport; and six training regiments. The air force mostly comprises older MiG aircraft (of the MiG-15/17/19/21 types), but includes small numbers of more modern MiG-23, MiG-29 and Su-25 aircraft. Like North Korea’s ground forces, a relatively large percentage of the air force is deployed near the DMZ – at military air bases only minutes flying time from Seoul.
The North Korean navy can be divided into six main groups: 43 missile craft; about 100 torpedo craft; 158 patrol craft (of which 133 are inshore vessels); about 26 diesel submarines of Soviet design; 10 amphibious ships; and 23 mine countermeasures ships. There are also some 65 miniature submarines for the insertion and extraction of Special Forces. Around 60 percent of the North Korean navy is deployed in forward bases, and North Korea has strengthened its coastal defences in forward areas by deploying more modern anti-ship cruise missiles.
It is estimated that North Korea’s heavy armoured forces, possessing enough combat hardware to equip perhaps ten US divisions, have an actual capability equivalent to about 2.5 US armoured divisions. With equipment operated by the infantry added, the North Korean ground forces possess an overall firepower which is equivalent to nearly five modern US heavy divisions. By comparison, Iraq was assessed as having six modern division equivalents and North Korean airpower, the equivalent to six US wing equivalents in size, corresponds to only two F-16 wing equivalents in estimated net capability.
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