Finland says farewell to the Markka

"The Euro: what 'value' a currency?"

Before leaving Scotland a friend handed over some old Finnish markka,
challenging me to see if I could “still use them.”

In truth the Finnish markka ceased to be legal tender in 2002. Finland adopted the euro when entering the Eurozone in 1999, and is still the only Scandinavian country to have embraced the single currency.

My only option, then, is to get them changed.  On a day when the euro crisis has deepened, and Nokia Siemens Networks has been forced to announce cutting a quarter of its workforce,  I show the 240 Finnish markaas, including two big green notes depicting the composer Sibelius to Jenni, the teller at Forex Bank.  She looks surprised to see them. “You want to get rid of them,” she advises, adding that from next year nowhere will take them, even the Finnish National Bank.  “Are the Finns sad about that?” I ask.  “No” she says instantly.

“With everything that’s been going on in the Eurozone, do Finnish people want their old currency back?” I ask, adding, “are you fed up of the euro?” Jenni’s smile falters.  She looks at me as if I am stupid.  “No, why?” she asks.

Her reaction will be a disappointment to Timo Soini, the outspoken leader of the far-right party True Finns, who made surprising gains in last year’s election.  Soini is an outspoken critic of the EU, and has since voiced his desire to run for the presidency.  He takes credit as attempts to derail the bailouts of Portugal and Greece.

Every Finn I speak to seems embarrassed by the True Finns.  “Finland is a Social Democratic country, like the rest of Scandinavia,” Taisto Oksanen, 47, a well-known Finnish actor tells me. “But in the last ten years we’ve seen that erode.  We didn’t have too much of a class divide before, but since the Euro some people have got very rich, and a few hundred thousand people have just dropped into poverty. Our education and social welfare has been damaged.   The old parties were seen as corrupt and in with business, so I think people voted for the True Finns for change.  But it’s happening all over Europe – people are voting for those that blame the immigrants.  Look at Spain.  It is history repeating.”

“True Finns are very conservative, want the Finnish markka back and to kind of isolate Finland from the rest of Europe.  I don’t know how the support packages will actually help the citizens and I think that the banks should also take some responsibility for all of this.” says International Business student Milka Tanskanen, 21. “ I was ten years old when we started to use Euro in Finland, so I don’t actually have any real experience of the Finnish mark.”

“The old notes were nice,” Oksanen tells me.  “The euro, the note, doesn’t mean anything to me.  It has less ‘value’.”

 

Government Makes Loss in Northern Rock Sale

by Gabriel Neil

The Edinburgh branch of Nothern Rock on Castle Street.

It has been confirmed that the trading half of Northern Rock will be sold to Richard Branson’s Virgin Money
for the sum of £747 million, at a £373 million loss to the taxpayer.

Northern Rock was nationalised in 2008 by the Labour government at the start of the international financial crisis, as it was unable to repay its government loans of £24 billion.

Richard Branson was opposed to nationalisation in 2008 stating that “a commercial solution would have been the best way forward”. It is estimated that £1.4 billion of government money has been invested in the bank, and commentators are expecting an overall loss of between £400-£650 million from the sale.

If a proposed £280 million extra is paid in full to the government, then the taxpayer will make a minimum loss of £373 million.

Virgin Money’s takeover of Northern Rock Plc. may mean there will be changes in interest rates for savers, as the bank was originally offering an tax-free ISA for 2.65%, whereas Virgin Money has been offering a very similar product for only 0.1%.

The side of the bank which owns 90% of its mortgages, Northern Rock Asset Management, remains under state control.

This loss will eradicate the savings that cuts to the BBC, announced in the Delivering Quality First report in October, were due to provide. In last year’s spending review George Osborne said that the BBC would make yearly savings of £340 million a year.

However, if the sale of Northern Rock makes the maximum expected losses , then nearly 2 years of BBC savings will have been cancelled out.

These cuts, amounting to 20% of BBC funding have meant that the broadcaster has had to lose 2000 jobs over 5 years, sell buildings and impose cuts to funding for BBC 1 and 2 of over £62 million.  The BBC website has warned that these will result “in more repeats, a reduction in entertainment programming and less money spent on original British drama programs.’

The National Union of Journalists have been quoted as saying that these losses mean that “strike action is inevitable”.

Concern as empty units increase at Kirkcaldy Shopping Centre

by Ashleigh Gibbs

Shutters Down: A familiar sight at the Kirkcaldy shopping centre

The potential closure of a small arts and craft store has struck a further blow to a local shopping centre in Kirkcaldy. Burns and Harris, one of the centre’s longest standing occupants, has been forced to reduce opening hours and create redundancies adding further speculation about the future of the ailing Postings Shopping Centre. With high rates forcing existing business to move to the High Street and failing to attract new business alike, the centre has seen a devastating increase in empty units with a direct impact on spend, leaving few remaining stall owners and shops struggling.

“It’s getting worse and worse…” an employee of Capability Scotland, one of several charity shops, said. “We would have had about eighty or ninety people through the doors a day, now it’s more like twenty five.”  One stall owner told of how a fellow goods seller had taken no money at all on a Saturday and there is greater concern yet that development plans for a new supermarket at the town’s Inverteil site may have a detrimental effect to its vitally important Tesco.  The initiative continues to be discussed.

Opportunity Omagh gets underway

by Gemma McCallan

A Tesco store similar to this one will get the ball rolling at Opportunity Omagh

It has been announced that the £350 million Opportunity Omagh development is underway with supermarket giants Tesco confirming their arrival. There have been mixed reactions to the news however, with claims that it will have a detrimental affect on the town centre, taking business out of the town centre. Omagh Chamber of Commerce President, Christopher Kelly has welcomed the news but has expressed concerns that the proposed location could create ‘a rival town’. Mr Kelly said: “The Chamber welcomes the news that Tesco has plans for a new store in Omagh and that the giant retailer is interested in investing the local community and creating jobs. The problem is that the proposed site on the Derry Road is the wrong site and is too far out of town.”

It has also been recognised however that the development, which is the biggest in the town in over 20 years, will be a huge catalyst for employment in the area, creating over 2000 sustainable jobs across a number of sectors. Chairman of Omagh District Council, Cllr Frankie Donnelly said: “The importance of the immediate boost and jobs for our local construction sector from this £350m project, combined with the longer term sustainable job creation and infrastructure provision are vital to ensure that Omagh continues to grow and develop as a place for our people to live and work.”

Napier Craighouse Campus sold for residences

by Jane Bretin

Edinburgh Napier University has just announced the sale of their historic Craighouse campus to be converted into new homes.

The sale of the campus is part of a “long-term plan and is unrelated to education cuts” according to communications officer, Patrick McFall of Napier University.  The site was acquired by the university in 1994 and is home to the School of Arts and Creative Industries as well as the School of Health and Social Science. Both these disciplines will relocate their headquarters to either Merchiston or Sighthill campuses that offer a “better, more modern workspace” for staff and students.

The building, which was established in the 12th century, was bought by Craighouse Partnership. It will undergo redevelopment and be converted into private residences. It will continue to host private events until 2012 and will serve as university grounds until mid-2013.

Copyright FluFlixFlex

The buildings are also well-known for their original use as a mental asylum and its quirky architecture. According to the university’s website, it was home to the man who introduced skyscrapers to Japan.

The proceeds from the sale will be reinvested into the development of the university.

Iron Age gold hoard to finally be on display at The National Museum of Scotland

by Emily Glass

National Museums Scotland have finally secured a set of four Iron Age gold neck ornaments after raising funds for two years.

The treasure was found by David Booth  in 2009 in his first outing with his metal detector whilst at work. Chief Game Warden at Blair Drummond Safari Park, near Stirling, Booth unearthed the trove which was lying a mere six inches below the surface of a field.

The neck ornaments, or torcs, date between the 1st and 3rd Century BC and will be on display in the National Collections at The National Museum of Scotland on Chambers Street.

Mr Booth will receive a reward payment of £462,000 which was set-up by the Queen’s and Lord Treasure’s Remembrancer after he reported his remarkable find to the Treasure Trove Unit.

The treasure has been cited by Culture Minister Fiona Hyslop as being the most important Iron Age find in Scotland’s history. She described the importance of the hoard’s display in The National Museum of Scotland: “I congratulate the National Museum of Scotland on its successful fundraising campaign to ensure that it remains here and will be on free display for the general public.”

Who wants to be a MacMillionaire?

Henderland Road. One of the city's most affulent areas. Photo by Emily Glass.

by Anne Mackie and Emily Glass

A recent report by Barclays Banking suggests the number of millionaires in Scotland has increased by almost 20 per cent in the past two years.

Around 40,000 individuals now boast net wealth exceeding £1 million – a definite increase from the 34,000 at the end of 2008, and it’s set to rocket by 2020. New evidence indicates Scotland will see a 38% jump in millionaires by the end of 2020, higher than any area other than the north-east of England. That will mean 56,000 Scots millionaires by 2020, leading the country to outstrip the rest of the UK.

[Read more...]

International Students Struggle with Student Accounts

graduatefinance.comBy Eva Deckers

International students in the UK are having a hard time finding student bank accounts.

While UK residents can opt for special offers to come with their students accounts, international students are left with no options but to save their money and hope for the best.

So far only Santander, the Spanish bank, provides international students in the UK with special services. With the promise of receiving at least £50 a month, a student can get up to 3.00 AER/2.96% gross (variable) on balances up to £500 a month.

However, these can only be acquired after the students have been living in the UK for over 3months. Olivia Rastoin, 20, a French student at Edinburgh Napier University says “the most annoying thing is that I can’t get an overdraft, which can be hard when living a student life”. She adds that “having a larger interest rate and free bonuses like rail cards would be very welcome but just aren’t available for overseas students like me.” [Read more...]

Private sector boost for Scottish economy

By Tom Barry

The private sector in Scotland has recorded its strongest rise in activity since June 2007. [Read more...]

The New Town Campaign

Edinburgh's infamous George Street (photo credit: Callum Davidson)

By David Walsh and Anne Mackie

It’s billed “the Athens of the North” but new plans are being put in place to boost and revive the profile of Edinburghs New Town. New evidence suggests the city is failing to make the most of its neo-classical architecture, streetscapes and it’s role in shaping the Scottish Enlightenment. It is thought many of the city’s highlights are missed out by visitors who are more inclined to visit various attractions no further than the Royal Mile.

[Read more...]

Cameron: Passion versus duty over “The Big Society”

Speech analysis by David Walsh

Podcast by Katy Docherty and Emily Glass

‘The Big Society’ could be compared to ‘The Big Bang Theory’ in many ways. It may make a loud noise with the promise of creating something, but is the new rhetoric for old fodder merely just smoke and mirrors to save face in a time of economic difficulty?

PM David Cameron is answering questions over his "The Big Society" (Image: BBC)

Prime Minister David Cameron has stressed the need for social as well as economic recovery. In his address to assembled London social entrepreneurs this morning, the Premier outlined just what his vision of “The Big Society” was. ”It is actually social recovery as well as economic recovery, and I think we need social recovery because as I’ve said lots of times in the past, there are too many parts of our society that are broken,” he explained.

Perhaps the speech was wasted on an audience who would be potentially considered core Conservative voters and those less directly affected by Cameron’s latest crusade in social politics. Preaching to the converted, and all that. Critically, Cameron needs to assert his faith in the concept on the lower sorts on the economic rungs; to Mr and Mrs Everyday whose lives will be hardest hit by a compacting economy and spending cuts, not the section of society most financially cushioned from a fall.

Stating that it was his ‘passion’, he went on to describe that reducing the budget deficit was only his ‘duty.’ Such a conflict of interest has been noted by critics of the government who have panned the concept as being “too vague”. Mr Cameron did acknowledge this in the speech this morning, saying that he agreed it was vague in the sense that there was no single initiative being rolled out nationwide but “a stream of things that need to be done.”

What exactly is “The Big Society”? In a nutshell, it is taking emphasis off central government action and empowering local communities to organise their lives more effectively and harmoniously. The bitter irony in this rhetoric is that it will be handing power to the people who are in the firing line of his double-barrel tirade in calling for people ‘act more responsibly’.

”Whether it’s broken families or whether it’s some communities breaking down or whether it’s the level of crime, the level of gang membership, whether it’s problems of people stuck on welfare unable to work, whether it’s the sense that some of our public services don’t work for us, we do need a social recovery to mend the broken society and to me that is what the Big Society is all about,” he said. If it is the handing down of power from the government to the people, would one want to be giving control to broken and lawless communities?

So, is “The Big Society” merely being ground out the the ConDem coalition policy mill to paper over the cracks in public spending? It would seem that in having to reduce the country’s budget deficit and therefore withdrawing key public services, the government believes that the public should also do it’s duty in meeting the government halfway. As he stated, government action can only ever be half of the answer and wanted to make it easier for people to volunteer in society.

What of the voluntary sector we have? Although much funding of charitable and local government-funded schemes will dry up in the current financial drought, Mr Cameron has unveiled a £100m transition fund, christened as the Big Society Bank,  to aid voluntary organisations. Critics say this is not nearly enough to help finance the number of volunteer groups in operation in the UK, many of whom have benefited from government coffers in the past.

And what will “The Big Society” mean for communities in Scotland? Well, in Edinburgh for example, £90m will be axed by the City of Edinburgh council in its budget over the next three years. Glasgow city council will need to find £101m over the next two years. In real terms, this will mean a lull in public service provision and is leaving local councils across Scotland searching for an alternative. Is David Cameron’s “Big Society” the answer?

Listen here:

An American Dream in Scotland

What was once synonymous with America is now becoming a staple of Scottish tradition, but how is it being adapted across the pond, and how has the recession affected the prom business? Patrick McPartlin went to find out.

For most British schoolgirls, the idea of a prom normally involves splashing out on expensive dresses, getting their hair and nails done, and deciding whether or not to book that pink fire-truck as transport. For the boys, it’s looking awkward in dinner jackets or Highland dress. It’s normally a process that lasts for the majority of the school year. University applications are neglected, schoolwork lags, and nothing seems quite as important as the school prom.  Most long-suffering teachers and parents would point the finger at Hollywood creations such as Grease and in more recent history, 1980s films such as Pretty in Pink and Sixteen Candles. Of course the recent influx of American teen movies in the vein of American Pie, which often focus on the hapless hero’s attempts to woo the girl at the high school prom. Recognisable by the ill-fitting suit and crushed corsage, these reluctant protagonists have become something of a poster-boy for awkwardness, reflected in part by some of Scotland’s teenagers.

A scene from American Pie, with the main characters at their high school prom (nydailynews.com)

The first recorded account of a prom as we know it was by a student at Amherst College, Massachusetts, in 1894, who described what would now be recognised as a formal senior ball. Proms on the other hand, have evolved from something traditional to something decadent. One of the main differences between proms in America and proms in Scotland is the choice of dress for the guys. As if there was an unwritten law about what to wear, nearly every male shows up decked out in a kilt. There is an almost insatiable desire to emulate the Americans, especially in terms of limousine transport. I spoke to a representative from a limousine company and asked him how profitable prom business was for his company. Steve, who’s been organizing limousines for proms for the past six years is well aware of the benefits: “It makes up our biggest percentage; the next percentage is the wedding side of things, but the schools’ proms is a big section of it.” Classic cars and party fire-engines, complete with uniformed drivers are proving big hits with the kids, but limousines are still the favoured method of transport. The very idea of a school leavers’ prom has invoked ideas of celebrity and rockstar lifestyle. The more expensive the dress and the flashier the limo, the better, but it’s not just the 17 and 18 year olds who are fighting to be in the spotlight. In recent times, the idea of a prom to mark a coming of age has spread, as Danielle, who has been doing prom manicures for nearly two years explains: “a lot of the high schools are getting more and more into it and so’s primary seven; it’s a growing kind of thing now.” She later went on to tell me that despite specializing in wedding hair she was noticing that more and more school children were getting their hair done. It’s a similar story with nail-care experts and dress-makers.

There’s an underlying worry with some parents about their children attending a prom between primary school and secondary school. Some parents I spoke to voiced their concerns about their children ‘growing old before their time,’ whilst others questioned the point in having a prom for eleven year olds: “It’s all very well having a prom at the end of high school; it’s a rite of passage, it’s marking the end of school education. But to have a prom for primary school kids is nonsense.”  In a day and age where there is an ongoing battle between consumers and companies over the type of products marketed at younger children, the idea of a prom for pre-pubescent children seems a little, well, premature.

From my own experience, it wasn’t just tartan and Irn-Bru that helped my own high school prom feel distinctly Scottish, but the numbers of drunken sixth years, staggering about with an alcopop in one hand, and their makeup smeared halfway down their face. And that was just the boys. In what was an alarming comment on Scottish society, most of my peers had decided to use their prom as an excuse to get drunk. I hadn’t particularly wanted my lasting prom memory to be of me holding up one of my classmates, underage and severely under the weather from knocking back a few too many lagers, but it’s one that will remain with me.

Obviously for the primary-age children, one would hope that it wouldn’t be a similar story. But that’s where the worry lies. Children are starting to drink from younger ages. A recent article from the Guernsey Press highlighted the worrying trend for pupils as young as 12 turning up at school on Monday with hangovers. Due to the nature of advertising and television programmes, it’s nearly impossible to place children in an adult setting and not expect them to ape adult behaviour. Diana Appleyard pointed out how children are becoming ‘mini adults’ in the Daily Mail last year, titled The Primary School Prom Queens.She produced eye-opening figures about children as young as seven wearing dresses costing hundreds of pounds, along with fake tan, fake nails and makeup. Yet the parents seem to have no problem with forking out for outfits, or the idea itself, calling it ‘cute’ and citing the introduction of films like High School Musical as having given rise to this obsession with proms. When I asked a few parents for their opinion of proms for primary age children, none of them fully supported the idea. One mother admitted that she was uncomfortable with the idea of allowing her younger daughter to attend such an event, but had let her daughter go regardless, saying that she didn’t want her to feel left out. It’s clearly more of a dilemma for some parents than others.

So, with the country coping with a recession, it would seem sensible to assume that the money spent on proms would diminish. From what I’ve seen, it’s actually the other way around. Some parents were quite surprised at the suggestion that the recession would have limited spending on proms. I asked a few parents how they would cope with higher prices and less money. None of them felt that the recession was a stumbling block whatsoever. Some pointed out that they were actually spending more money on their child’s prom because they hadn’t gone on holiday this year. Others were adamant that such an important rite of passage shouldn’t be affected by money issues.

I visited a school that is well known for its charity work and donations to organizations such as the Scottish Catholic International Aid Fund (SCIAF) and the Seed of Hope charity that helps girls in Kenya to receive an education. The school, along with final year students, has held a fashion-show-cum-prom-fair with a difference, for the last five years. Cath Whitten, the head of sixth year told me more about the idea behind the event: “Tonight’s fashion show has two different themes, really. It’s to allow all of our pupils to see the variety of dresses they can buy, where they can get limos, anything they need that will make their prom a success and it’s also in aid of various charities that the kids themselves take part in. For instance, part of the money tonight will go to help a number of people go to Lourdes in the summer with the archdiocesan pilgrimage.”

It was all very well organizing this fashion show under the banner of charity, but the real question is how effective it is. I know for a fact that a lot of the pupils taking part in the event regularly give to charity, even if it’s just emptying coppers from their pockets at the end of the week, but it almost feels a bit paradoxical, to be advertising decadence alongside charity. Perhaps that’s the way forward; the charity angle is certainly one to be commended, but I think there’s a bit of a concern that it’s the guilt factor dictating the dual purpose behind the event. Besides that, it’s the parents who turned up on the night who were the ones most likely to be footing the bill for their little darlings’ prom. Haircuts, fake tan, manicures, expensive dresses, eccentric modes of transport, makeup, a bag to go with the dress, perhaps some matching jewelry as well are all on the list for those graduating from high school next June.

In America, high school proms are limited to high school graduates. There are no imitations for younger children. Whether this is down to the difference in the education system or America’s more conservative nature is unclear, but from speaking to a few American students, some who have already been to their high school prom, and others who are eagerly awaiting their turn, the attitude is vastly different to that of Scottish pupils. Aubrey, who attended her prom in May of this year was very enthusiastic about the event as a whole: “It’s more about the end of an era. It’s still very traditional; you pick a date, and the two of you go together to the prom. It’s not even necessarily a ‘love’ thing; it’s often friends who go together, which reflects the overall feeling.” When I asked her about the drink culture, and explained how it was in Scotland she was shocked: “There isn’t really a drinking culture per se at our proms. I mean sure, we drink, there’s often a punch bowl for example but it’s all very measured. It’s not a party, it’s a formal event.” Allie, who graduates next summer, is looking forward to her prom already but remembers the media coverage that lesbian teen Constance McMillen received earlier this year after she challenged her school’s policy on same-sex prom dates:It’s ridiculous really. One of my friends is gay and the school has no problem with him bringing his boyfriend to the prom. It’s not about opinions or morality. It’s about having a good time with the people you’ve spent most of your life with for the past few years. It shouldn’t be about politics.” Both girls were more interested in the sentimental aspect of school proms than anything else, something that doesn’t play as big a part as it should in Scotland. The unanswered question is whether Scotland’s drink culture is responsible or whether it’s a difference in society in general.

At the end of the day, the prom business is one which appears to have been unaffected by the recession. It’s still an important rite of passage, the bridge between school and further education, or the world of employment. Girls are still buying dresses worth £800-£1000, and paying significant amounts of money in order to get their hair styled like a Hollywood celebrity attending an awards ceremony or a film premiere. Whilst the Tinseltown effect hasn’t really rubbed off on the guys to the same extent, it might only be a matter of time before they start to rival the girls in prom spending. Or they could save the extra cash for another pint of Tennent’s. The surprising thing is just how much the prom culture has taken off and how it affects other businesses. In a small provincial town like Livingston for example, the high school proms provide business for local hairdressers, manicurists, dress-makers, limousine companies, even the local tanning salon. So it’s just possible that the growing prom business is actually providing a bit of relief for local businesses despite the recession. It’s unclear where proms will go next. The big business side of proms will surely continue to thrive, as will local companies. Perhaps the dresses will get more expensive, the haircuts more elaborate…who knows, maybe flying in by helicopter will become de rigeur. That student from Amherst College may well be spinning in his grave come June next year.

A facelift for an old favourite

By Emily Glass

The dilapidated old Odeon cinema on Clerk Street, Edinburgh is set for renovation to restore it to its former art deco glory. The New Victoria Project has revealed its detailed plans today for the site if its planned purchase is successful.

The decrepit old Odeon site

The New Victoria Project is made up of Edinburgh University Architecture Graduates to whom this extensive restoration project is a welcome job opportunity after spending the months since completing their degrees working in bar management positions.  The project are looking for investors to aid them  to buy the property from current owners Duddingston House Properties.

Their scheme aims restore and update the Grade-B listed building to produce a modern events venue with cinema, theatre, exhibition and private party capabilities.  With a first-floor bar opening-up onto the balcony, a large open area in the roof for bigger events and three smaller venues downstairs there are many exciting  possibilities for The New Victoria. The designers are also planning to return the main auditorium to its original 1930s decor. Many of the original features have been repeatedly repainted and covered-up over the years in the main auditorium so it looks set to be a length job. Operations Director Sarah Colquhoun explained: “A lot of them have been very heavily painted over so they need a lot of TLC. The French windows on the balcony are original so we’re looking at getting them restored and the skylight, which is an original feature, has been covered over as well.”

The original Victoria theatre. Credit The Guardian

The original auditorium

Lead designer Vicki Simpson was behind the renovation of The Ale House pub which stands over the road from the old Odeon earlier this year. After breathing new life into the Southside pub and attracting new, younger punters to the traditional ‘old man’s’ local the New Victoria looks set to be a success under her design. The heavy restoration that is planned is exciting for any Architect to get stuck into as Vicki said: “The highlight for us is restoring the main auditorium back to the original proscenium arch and exposing the statue recesses that are still there, and enhancing that with some new features.” Pulling the decor back to the original prosenium arch will mean that a large stage area will be placed in front of the cinema screen allowing for theatre productions as well as big screen productions to be shown.

The closing date for the sale of the site is 5th January 2011 so The New Victoria Project hope to secure financial backing over the next month to ensure the restoration can go ahead.

Ireland loses living wage

by Fearghus Roulston

The minimum wage in Ireland will be cut by a euro, falling to €7.65, as part of a planned series of austerity measures introduced by Taioseach Brian Cowen today. The plans, outlined in a 170-page document, involve cuts to the social welfare budget and a hike in income tax. The Irish government hopes that they will make savings of €15 billion by 2014. The Taioseach said Ireland would have to “take some steps back to go forward again.”

“Postponing these measures will lead to greater burdens in the future for those who can least bear them, and will jeopardise our prospects of returning to sustainable growth and full employment. It’s a time for us to pull together as a people,” he said. The measures also entail tapping into the pension reserve fund to provide for infrastructure plans, and the loss of 24’000 jobs in the public sector over the four-year period.

These announcements come in the wake of negotiations with the European Union and the International Monetary Fund over a proposed financial aid package of around €90 billion euros. The austerity measures are considered key to ensuring the bailout goes through. They also mark an attempt by the beleaguered Brian Cowen to enforce his authority over an increasingly fractious government, as Ireland continues to suffer from social unrest. The decision to cut the minimum wage seems likely to lead to more protests, with the Mandate trade union leader claiming it will “will place those with the lowest incomes, including migrant workers, in an impossible situation”.

Ireland has seen a rash of protests over the last two years of financial recession. Measures in February 2009 aimed at stabilizing the economy brought 120’000 protesters onto the streets of Dublin. The plans to introduce fees for higher education have been constantly opposed and demonstrated against by the Union of Students in Ireland. Some protests have led to violence. A few days ago the office of the Transport Minister, Noel Dempsey, was attacked and sprayed with graffiti, and the arrival of IMF officials led to massive demonstrations outside government buildings.

Other countries across Europe have also seen explosions of anger and violence as the recession begins to affect daily lives. Portugal’s general strike against proposed austerity measures began at midnight, with worker participation of more than 75 percent. Union chief Joao Proenca said he considered it the biggest strike ever in Portugal.

It seems likely Irish workers will follow a similar route, with a major protest planned for Saturday the 27th in Dublin. Tens of thousands are expected to take to the street in protest over the cuts, but trade union secretary David Begg claimed the protests would be peaceful. “They just simply want to bring to the attention of the government that look, you have to be concerned with the citizens of the country, as well as the bond markets,” Begg said.

Protesters on the European Day of Action- from Informatique, www.flickr.com

 

Budget could be Cowen’s last action

By Ryan C. Gavan and Edoardo Zandona

Brian Cowan

Tough times for Taoiseach Brian Cowen (Image:Telegraph)

The Irish austerity budget is likely to be Brian Cowen’s last action as Taoiseach , as he is set to call an election early in the New Year.

The budget was set to be announced on December 7th but after mounting political pressure, an announcement will be made this afternoon. The aim will be to set out the plans to reduce the country’s deficit to 3% of GDP by 2014.

This will lead to welfare cuts and tax rises of up to 50%  for low paid workers. The minimum wage is set to be cut by 13% and middle class families will lose tax credits.

The IMF and the EU  have sanctioned an extensive bailout package of  €90Bn to the Irish govenment.

The Irish government states, “providing assistance to Ireland is warranted to safeguard financial stability in the EU and Euro area.” 

Initially, they did not wish to accept the bailout package, feeling confident the problems could be resolved without a handout.  After extensive meetings with EU finance ministers it was accepted on Sunday evening.

In a reversal, Cowen rejected calls from junior coalition partners the Greens to hold a snap election.

After discussions with his own parliamentary party last night, Cowen stated he will, ” seek the dissolution of Dail Eireann and enable the people to determine the responsibilities of government in the challenging period ahead.”

 He has denied accusations that he is  ”hanging on” to power.

This could be welcomed by Sinn Feinn, who called for a vote of no confidence in the  Taoiseach yesterday. The party has seen increased support in recent times, prompting Gerry Adams to say that he will stand in  Louth for election to the Dail.

It has been recently reported that Ireland’s international credit rating has been dropped by Standard and Poor’s from AA- to A. This could have a great impact on the overall economy due to Ireland being highly dependent on oversees investment. The view that they may have difficulty repaying loans could increase interest rates and cause further problems.

Ireland’s debt crisis is the result of the property market crash, starting in 2008. After the huge economic boom, house prices have fallen by up to 60% and the banks have held bad assets ever since.  

Aiding to matters is the part-nationalisation of many of the country’s banks, turning into state-held debt.

Irish Finance Minister Brian Lenihan stated “an increase in corporation tax will not be a condition of the bailout.”

Ireland has the lowest level of corporation tax in the Eurozone at 12.5% which has come under scrutiny by other EU member states, such as Germany and France.

Public sector hit by budget cuts

By Gavin Harper

Parliament hit by budget cuts. Picture courtesy of Daily Telegraph

MSPs will have their pay frozen for the next two years, as part of a scheme that plans to reduce the running costs of the Scottish parliament by up to 12% and save nearly £10 million over the next four years.

These plans still require the approval of MSPs, but they are expected to accept the freeze in their pay, albeit reluctantly, in order to reduce the costs of the multi-million pound building at Holyrood.

The parliament’s budget for the forthcoming year has been set at £75.3 million, which is almost 5.3% lower than the already approved budget, which is still a sizeable figure.

Furthermore, the necessary cuts will not result in any members of staff being made redundant, while it was also confirmed staff numbers would be cut by 50 in two years time “through other means”.

Presiding Officer for the parliament, Alex Fergusson, said: “It is vitally important that the parliament continues to play its part in responding to the financial pressures facing public sector finances.”

These cuts come in the wake of some major financial cuts, announced by the coalition government at Westminster last month, which will see the public sector hit hard.

There are also significant cuts being made in the National Health Service (NHS) with one nurse revealing that staff no longer receive donations from patients or relatives, with the money instead going to the local trust.

Staff nurse Terrie Scott said: “We are having to tell relatives not to make donations, as the money all goes to the trust, and the nurses don’t see a penny of it.

“We used to be given a portion of this money for ward maintenance and for our nights out but now this is being capped”

NHS Lothian were unavailable to comment on this matter.

Audit Scotland steps in to look at tram project’s finances

By Catherine Mumford

Edinburgh tram construction. Photo courtesy of STV News.

Audit Scotland will be releasing an interim report on the Edinburgh trams in 2011, drawing on audits already carried out by Transport Scotland and City of Edinburgh Council.  The report has been given the go-ahead after a request from the Accounts Commission and Robert Black, the Auditor General of Scotland.

The controversial tram project has been heavily scrutinised by those concerned over the budget, with estimates varying between £545 and £600 million.  The people of Edinburgh are angry over the mounting costs of the construction of the 11.5 mile track.

Some questions will surely be answered as the the Edinbrugh City council said the report will focus on the project’s progress, as well as, costs and chief issues to date.  Lothians MSP Shirley-Anne Somerville said “Despite giving the tram project a clean bill of health in 2007, I am pleased Audit Scotland has finally decided to review the project.”

Though tensions have been high, given the recent fallout with the contracting company Berlinger Berger, Edinburgh Trams said it does not oppose the look into the project’s finances.  Somerville warned that any efforts to hide problems or attempts by those involved to needlessly extend or delay the report will not be tolerated.  Transport Scotland commented they will be fully assisting Audit Scotland in their inquiry.

There have been several ideas put forward about how the money could be better spent.  Local cycling activist Chris Hill said “I wish Edinburgh had a tram system, but I think the money so far spent would have been better used to re-open the South Sub and also create a genuinely ‘cycle/pedestrian friendly’ city.”  The aim of being green was at the forefront of the tram proposal, but noone can argue that nothing is more green than riding a bycyle.

According to a Bike Station/Sustrans survey in Edinburgh, people cited fear of traffic and route uncertainty among their top reasons of why they choose not to cycle to work.  Current Scottish government bike accident statistics confirm that Edinburgh’s city center shows a high proportion of accidents compared to the number of residents.  Accoding to the Royal Society for the Prevention of Accidents, 90% of all cycle accidents occur in urban areas.  They list cycle route networks and speed management schemes among the measures that can help reduce the risk to cyclists.  If money were redirected to making the city more cycle-friendly, the abovementioned concerns  could be addressed.     

Support of the tram project has long been waning, especially as it is following off the back of the Scottish Parliament building which also exceeded its spending plan.  The report will shed light on what has gone wrong sa far and what the plans are for the future.

Spain and Portugal Pressure Dublin, But No Irish Bail Out Request say’s EU

by Paul Foy

Irish Finance Minister Brian Lenihan

Portugal and Spain have called on the Irish Government to accept financial help from the EU, as countries borrowing rates suffer as a result of the Irish crisis.

Irish Finance Minister, Brian Lenihan will discuss the crisis tomorrow with his European counterparts in Brussels, and the Spanish and Portuguese are hoping that Ireland will accept the aid to protect the rest of it’s Euro Zone partners. But the European commission today confirmed that Ireland has not applied to tap the 60 billion euro rescue fund.

This goes against claims made by Fine Gael, the main opposition party at the weekend, that the government had already applied to the EU for aid.

Fine Gael’s financial spokesman, Michael Noonan said: “I’m extremely concerned. I think the reports (of an imminent bailout) over the weekend are true … I think there is European intervention underway.”

Calls to request the bail out reached fever pitch this week, as interest on Ireland’s 10 year bonds reached 9%, although this has now subsided to 8.3%. The Bank Of Spain governor, Miguel Ángel Fernández Ordóñez, said he hoped that an “appropriate reaction” from Ireland would calm the markets further.

He later told reporters: “The situation in the markets has been negative due in some part to the lack of a decision by Ireland. It’s not up to me to make a decision on Ireland, it’s Ireland that should take the decision at the right moment.”

If Ireland where to tap the monetary fund, Britain could have to pay up to 7 billion, as the previous government signed an agreement the day before David Cameron was made Prime Minister, which makes Britain responsible for 13.6% of the 50 billion pound fund. This could fall directly to British tax payers, depending on how any deal were to be structured

The UK government declined to say how much an Irish rescue package could cost British taxpayers. “There has been no application (from the Irish government for emergency funding) and we won’t speculate on it,” said a spokesman for the Treasury this morning, but Prime Minister David Cameron said  Ireland was a key trading partner and its stability was very much in the country’s interests:

“If you look at the Irish economy, Ireland is an enormously important trading partner with Britain. It’s a fact that we actually export more to Ireland than we do to Brazil, Russia, India and China combined,” he told parliament.

“Now, that is a rebuke to us, we’ve got to do better with those other countries. But Ireland is an extremely important trading partner and stability in the Irish economy and success in the Irish economy is very much in Britain’s interest.”

Dublin is resisting pressure to ask for help because the bailout terms would be severe. Ireland would have to partially surrender sovereignty over its budget and could also be forced to increase its low corporation tax rate of 12.5%, a cornerstone for attracting foreign direct investment from major multinational corporations such as Dell.

The Irish Govt has funds the keep the country running until Summer 2011, which makes it unlikely that it is facing the same fate as Greece. It is probable that this time will be used to try and kick start the economy, starting with an upcoming budget in which savage cuts are expected across the board.

What will the impact of Lord Browne’s report be?

By Michael Heggie And Christopher Harress

Listen here:

Let £eith Decide

By Colleen Reid

£eith Decides

A funding initiative to give power to local people, ‘£eith Decides‘ is an X-Factor style pilot project which sees local groups and charities battle it out for a share of Leith’s Community Grant. £16,600 in total is up for grabs, with the people of Leith to decide where and how it is spent.

Run by Leith Neighbourhood Partnership, the scheme is the first of its type in Edinburgh and could be rolled out across the city if successful.

The principle of the project is simple, each applicant will give a short presentation to Leith residents, which will then be voted on with a top score of five. The top rated organisations will then receive up to £1000 as decided by Leith residents.

Councillor Jenny Dawe, Leader of the City of Edinburgh Council, said: “This is a worthwhile project focusing on the local groups in Leith and is a good example of empowering communities by devolving funding decisions to a local level.”

In reality, the project seems to be a mystery to both residents and applicants alike. After contacting several of the groups and organisations who are in the running to gain funding, many were unaware of the X Factor style vote off system and this could spell trouble for the scheme.

Leith resident Emma Milne was not even aware of £eith Decides. She said: “It’s a good idea but I live in Leith and I’ve never heard of it. If it was advertised better it could work.”

A total of 29 groups and organisations are in the running for a slice of Leith’s yearly Community Grant of £48,032. The initiative has attracted a wide range of groups including Families Together in Leith, Out of the Blue Arts and Education Trust and the Bethany Christian Trust.

Dan Reynolds from Bethany Christian Trust said: “A project like £eith Decides means that smaller and local groups can put forward their own case for support and that by involving as many ordinary people as possible, it’s a chance for the community to decide what is best for them.”

The voting event is open to everyone who lives or works in Leith and will take place on the 27th November in Leith Academy. However, with the voting turnout of the recent general elections being just 68.4% for Edinburgh North and Leith compared to 73.8% in Edinburgh South, are the people of Leith likely to come and vote? Incentives such as a flat screen TV and a signed Hibs shirt are being offered in a prize draw to entice residents to participate.

Leith boys Charlie and Craig Reid from Scottish band The Proclaimers are trying to promote the project. They said: “Our very best wishes to all involved in £eith decides, and we are sure the Leithers will be astute judges.”


Alcohol Bill fails to raise spirits

By Euan Black

Edinburgh’s local business owners and residents gave the Scottish Government’s Alcohol Bill a lukewarm reception today.

The bill will outlaw volume discounting – offers such as two crates of beer for £14 – and make a ‘Challenge 25′ ID policy compulsory, and has paved the way for a possible Social Responsibility Fee which will make on and off licenses pay a sum towards policing and health costs relating to alcohol abuse.

However, the SNP’s key policy of minimum pricing of alcohol was rejected by the majority of MSPs, with the votes going 76 to 49.

David Simpson, 32, assistant manager of the Golden Rule pub near Fountainpark, was unhappy with the majority of the measures introduced by the bill, especially the Social Responsibility Fee. He said: “The point of a license is that you are licensed to sell alcohol responsibly, so having a license should imply that you are socially responsible, so I think this fee is pretty pointless.

“I think it will be harder for independent pubs, whose margins are being squeezed more and more. The massive chains like Wetherspoons will be able to absorb these costs. Inevitably, in independents prices will have to go up yet again to absorb the costs of a fee. Unfortunately, and I hope it doesn’t happen, more pubs may close and more people may lose their jobs.”

Mr Simpson supported the minimum pricing of alcohol to 45p a unit, believing that was the only policy that would have tackled Scotland’s perceived alcohol problem.

He said: “Minimum pricing is the only thing that would have helped. It wouldn’t affect the price of a pint, or of a nice £15 bottle of wine that I sometimes want to enjoy. What it would change is the price of stuff like cheap cider.

“I was in the local shop the other day and I saw someone buy four and a half litres of cider for £3. That proves to me that minimum pricing is socially responsible, and that the rest of these measures are just penalising the on-trade.”

Shoppers’ views at Edinburgh off-licenses were mixed. Michael Webber, a 24 year-old Edinburgh student, said he was “all in favour of a Challenge 25 ID scheme”. He added: “If people are offended by being asked for ID, who cares?”

Gail Stevens, 45, a part-time receptionist, agreed with Mr Simpson on minimum pricing. She said: “Minimum pricing should have been voted through – there is a problem with drink in Scotland.”

Callum Black, 20, a bar worker in St Andrews, also took issue with the Social Responisibility Fee. He said: “The fee is a big problem. How will they decide how much to charge? Smaller pubs struggle as it is.”

Effects of recession on smaller businesses

By Sean Stringer

With the announcement of a nationwide financial crisis, fears were raised about the effect it threatened to have on the future of both local businesses and more established nationwide organizations. With the public spending less money, due to the fact income is said to be 10% lower than it would be if the financial crisis had not come about (source – http://www.thetelegraph.co.uk) the impact has been great with businesses of all sizes losing out on income. Although the larger, more well known organizations would have felt the ‘pinch’ they did not have the same fears that were held by the smaller companies, time would prove they under-estimated the severity of this ‘recession’.

Since 2008, figures have been released that show the larger businesses have been impacted massively by the recession, and larger well known companies now find themselves having to close down branches more and more regularly, even now in 2010. Well known clothing company GAP have had to close around 85 stores nationwide, and Footlocker was perhaps hit the hardest of all well known chain stores and had to stop trading in more than 140 stores nationwide. These are massive numbers and will inevitably result in the loss of profits for the companies and could also threaten their future. (source – http://urbanlegends.about.com/od/business/a/store_closing.htm)

An example of businesses closing down due to the financial climate in 2010.

In an interview Elaine Brown, the owner of a local business in Fife, had this to say about the ‘recession’ and the effects it has had on trading over the past few years:

“When the recession was initially announced and financial figures were released, immediately my husband and I were concerned. However, almost 2 years down the line the impact has not been as great as we thought it would be and over the past few months business has been as good as it has ever been.”

It is clear that there are more examples of larger organizations – banks and shops alike – struggling because of the recession, compared to smaller local businesses. Although this could be down to the fact that these larger companies are under more scrutiny and receive more media attention than smaller businesses, facts and figures that have been released over the past few years prove that the progress of the larger businesses has in fact been less impressive than that of the smaller local businesses.

As the image shows, there are businesses closing down even now in 2010 and it is likely this trend will continue in the coming years.

Decision on Lossiemouth closure delayed until 2011

By Cally McWilliam

The uncertainty over the closure of RAF Lossiemouth continues today as Defense Secretary Liam Fox confirmed last night that no decision on the future of the base would be taken until next year. The announcement came during a discussion with MP Angus Robertson, the SNP representative for the Moray area. This comes after ministers decided to scrap the Nimrod MRA4 replacement programme, which will effectively cause the closure of the neighbouring RAF Kinloss base.

Mr Robertson argued that there are important and practical reasons for keeping the Lossiemouth base open, claiming that it would be the best place to base the new Joint Strike Fighter aircraft and that as the countries most northerly air base it could strengthen military co-operation with Norway, as the country are purchasing the same plane.

He stated: “There is no doubt that the successful future of RAF Lossiemouth can be secured through co-operation with our Nordic neighbours if the right military facilities are maintained, and vital capabilities such as maritime reconnaissance and fast-jet capability located in the best strategic location.”

He also raised the issue of the large social and economic impact the closure would have on the area. Last year Lossiemouth celebrated 70 years of having the RAF based in the town, but the decision means further doubt and insecurity for the families of service personnel stationed at the air bases and for the community in general on whether jobs and funding in the region will be lost. Last weekend 7,000 people turned out in force to protest the closure, receiving support from actor Euan McGregor and pledges from MP’s such as Annabel Goldie, Iain Gray and Tavish Scott that they would fight to keep the base open.

In another act of support for the base within the community, a local weekly newspaper, the Northern Scot, has started ‘The People’s Campaign’ in order to gain publicity for the cause. After playing an important part in organising last weekends protest, the paper has also started a petition and created banners, t-shirts and posters as well as writing to the prime minister inviting him to visit Moray personally to get a feel of the impact the base’s closure would have.

The editor of the paper Mike Collins stated: “The two bases have over 5,700 service and civilian personnel and the local enterprise company has reported that they pump £160m into the local economy each year. The stakes are high for the future of the Moray area and we are fulfilling our role as the local newspaper in championing the cause and giving a voice to the anger and concerns of local people.”

Edinburgh airport up for sale despite recent passenger boost

By Sarah Vesty

Plane waits in the wing for decision

The UK’s biggest airport firm, BAA, has released figures showing a 3.5 per cent passenger increase at Edinburgh airport last month, despite losing their appeal against the Competition Commission to continue owning Stanstead, Edinburgh and Glasgow airports. Glasgow experienced a fall of 7.4 per cent compared to last year.

Following the Court of Appeals decision to uphold the demand made by the Competition Commission, BAA was given 28 days to appeal. A spokesperson from their media office commented that although the appeal limit had expired, BAA was still considering further legal action against the CC.

In October the Court agreed with the Competition Commission believing that to create sufficient competition amongst airports, BAA must sell some of its airports to enable fare prices to fall for customers, particularly those in Scotland.

The numbers of passengers will not affect the decision of which airport to sell in Scotland. A BAA spokesperson stated that:

“It is complicated. It depends on lots of factors like when we have to sell it, how much money it will be for and so on. It’s good that Edinburgh is doing well. It’s important that it does well even if it’s being sold.”

The figures were published following the expiration of the set 28-day appeal period granted to BAA by the Court of Appeal. It found in favour of the Competition Commission who had demanded that the organisation must sell Stanstead and either Edinburgh or Glasgow.

The Supreme Court has no record of any further legal action being raised so far and the airport firm commented that it could be a while before we see any final decisions made.

Christopher Clarke, Chairman of the BAA Airports Inquiry outlined the reasons behind the move:

“We have decided that the only way to address comprehensively the detriment to passengers and airlines from the complete absence of competition between BAA’s south-east airports and between Edinburgh and Glasgow is to require BAA to sell both Gatwick and Stansted as well as either Edinburgh or Glasgow.”

A 3.4 percent overall increase in passengers travelling was revealed by the group, believed to have been helped by a 1.2 percent increase in the number of flights. Of all airports up for sale Edinburgh was the only one to see an increase as Stanstead fell by 3.1 percent compared to the same month last year.

German firm backs down on legal action against former Edinburgh Tram Chairman

by Adam Smyth

New developments have come to light today regarding the ongoing dispute between German construction firm Bilfinger Berger and Transport Initiative Edinburgh(TIE).

 

Edinburgh's expensive tramline project continues amidst a dispute between Bilfinger Berger and Transport Initiative Edinburgh credit: bbc.co.uk

The argument surrounds changes to the design of the 11.5 mile tram line being built from Newhaven to Edinburgh city Airport and who will be paying for them. Estimates for the project’s cost range from 545 to 600 million pounds. The German firm has now agreed to cancel legal action they said they would take last Friday against former Edinburgh Trams chairman David Mackay after he called Bilfinger Berger a ‘delinquent contractor’ and dismissed the entire project as ‘hell on wheels’ last week.  Yesterday a prelimary hearing in the case was to be at the court of session in Edinburgh. Behind the scenes discussions took place between the two parties and their lawyers instead, and the court was informed the hearing would not go ahead.

Earlier today Berlinger Berger issued a statement that said it was ‘concerned that Mr Mackay’s statements implied criminal behaviour on their part. Mr Mackay has today assured Bilfinger Berger that he had no intention of implying criminal behaviour’. Berger added ’The terms of our contract means that we are not usually allowed to talk to the media but Mr Mackay’s remarks crossed the line and we were forced to react’.

The construction company is referring to David Mackay’s communication with the Scotsman which published his words which revealed he thought Bilfinger Berger was a ‘contractor who scented a victim, who probably greatly underbid and would use the contract to make life extremely difficult for the city. And they have done exactly that’.

The firm made no mention of it’s criminality concerns when announcing the action last week, instead referring to Mackay’s ‘unfounded and unjustified comments’.

Local Lothians SNP MSP Shirley Anne Somerville said ‘it really is time for TIE and Bilfinger to get a grip. They should have been getting round a table for negotiations, not fighting it out in a court room’.

Following Mackay’s unexpected leaving of his job last week, Berfinger Berger said ‘ we see the change of management on the client side as an opportunity to finally move forward with this project in an orderly manner’.

Mackay is not the only person to have quit the project. Scottish civil engineer and Berger employee Kenneth Reid, 45, from Hamilton, quit his £840,000 a year job while he was working on the Edinburgh Tramline. His bosses were quick to point out however that it had nothing to do with the dispute.

Bilfinger Berger is Germany’s second largest construction firm and have been involved in other high profile fallouts on other projects around the world. In Canada they were fired from a contract to dig two tunnels for a water filtration scheme in Vancouver after demandins extra cash to finish the job. Last year they fell out with authorities in Qatar in a row over £175 million pounds of debt on a road project.

 

The construction firm labelled 'delinquent' by former Edinburgh Tram chairman David Mackay. Credit: connect.in.com

 

 

          

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