1.3.10
Foreign Lorries debate
Austin Mitchell duly put the case for fairness for British lorry drivers. In reply the Minister described the difficulties the department had had in drawing up a viable means of charging foreign lorries. One scheme had been turned down by the Chancellor because of not being value for money. Rules that limit the scope for foreign hauliers will come into foce on 14th May. Within the EU rules the department is still working on the problem.

23.2.10
Foreign Registered Lorries
There have been complaints for a long time about the unfair competition which British hauliers suffer from European hauliers. It takes two forms. European lorries can fill up with cheap fuel before crossing the channel. They also have lower overheads as they pay lower road taxes than British hauliers.

It was featured on 'Look North' and perhaps this was no coincidence, since also today Austin Mitchell opened a debate on the subject in Westminster Hall. This is where MPs can initiate debates on issues that won't be coming up in Parliament, but which a Minister will reply to. We should, at least, get the government's view.

10.2.10
Belief in Climate Change
Recent polls show that there is a significant fall in the proportion of the public who believe that climate change is a serious problem, and/or who think that early action to limit it is necessary. Though disturbing, we do not find it surprising.

The reasons and nature of climate change (or global warming) are provided by scientific study and analysis. For non scientists it is quite possible to read the books and papers about it and come to conclusions about what facts make sense. It is hardly surprising, however, that most people have neither the time or inclination to do this. And even having got so far the student is still faced with difficult questions of probability and uncertainty in many peripheral areas.

If is accepted that climate change is real and largely man made, the question then is how to deal with it. And that means taking political decisions. It is obviously stupid to object to a political remedy and then suggest fro that that the dangers of climate change are exaggerated.

That the earth is warming is fairly clear. It is at the rate of about 0.2 degrees centigrade per decade. This is an average world temperature, and is more important than it sounds. And even the sceptics now accept that mankind is at least partly to blame. On the other hand, some supporters are sometimes too specific about dangers and results. We are talking about long term trends, and there could come a time when warming, as it were,feeds on itself. It is a possible danger.

As time goes by, more information accumulates. If, as we expect, this confirms what so many scientists are saying, public opinion will swing back again.

4.2.10
Politics of economic growth
When we heard that the economy in the last quarter of 2009 had grown (on a first estimate) only by 0.1 % of GDP, it was easy to see that a slight pull back in the first quarter of 2010 could be a blow to Labour's chances in the general election. The latest news makes this now less likely.

Most retail sales will probably be poor in January, not helped by the reversion of VAT to 17.5%. However, we find that car sales in January were well up on a year ago, because of the extension of the car scrappage scheme to the end of March. Also Manufacturing industry at last seems to be showing some sign of life, hopefully the beginning of a larger revival following the pound's devaluation. So the probability of another decline in GDP growth is falling.

18.1.10
School Accountability
An all party parliamentary Select Committee have recently issued a report with this title. It said, amongst many other things, that government initiatives had meant that schools often felt restrained and limited in what they could do. They argued that councils should work closer with schools, and should have a greater role in school improvement and accountability.

"Most of the schools I go to want a well informed and positive local authority partnership" said Barry Sheerman MP.

The North East Lincs Council seems to be going in the opposite direction. Perhaps they have no Councillor capable of doing the job!.

14.1.09
Local Democracy
We hear of more and more local authority activities being handed over to outside bodies. The claimed reason is to provide services more efficiently. It may on occasion be true, but how is the Council to know in advance?

There are two reasons (at least) why this policy is presently wrong. It inevitably reduces the accountability of the Council to electors. It also means that some income which normally remains here, goes elsewhere.

10.1.09
Dispute amongst Labour MPs
Going ons amongst Labour MPs has been in the headlines this week. In the Grimsby Labour Party we watch and hope it is not working to our electoral disadvantage. The latest polls seem to show that it isn't.

Austin Mitchell is not the conspiratorial type, and has made it clear he thought the request for a ballot was unnecessary. His approach has been different. He has a lead article in the current "Political Quarterly" quoting from letters which he has sent to Gordon over a long period, about mainly economic policies. At least that is something constructive. For a brief summary of his economic views click here

2.1.09
Climate Change
We see that many councils have signed up to the 10:10 campaign, but North East Lincs is not one of them. So what is the 10:10 campaign? It asks bodies and individuals to sign up to reduce their carbon footprint by 10% in the year 2010.

North East Lincs will in the long run be more adversely affected by global warming than most other areas. The Council has in the past shown concern about climate change, and it is disappointing that so far it has not signed up to this campaign.

23.12.09
TV Debates
Up to now one or other party has refused to debate nationally on TV. It is easier for the opposition to attack the party in government than for the other party to defend their policies. So what's now in it for Labour?

One reason may be that a debate may help to emphasise the difference between the parties. In one study as many as 46% of people thought there is no real difference. By heightening the political tension Labour may hope that a higher proportion of their supporters actually vote.

4.12.09
Changing politics
The political atmosphere is changing dramatically. This is certainly related to the economic crisis and its implications, but it also reflects the more cynical public attitude to politicians, not only because of the expenses scandals.

One curiosity is the rise of new local political parties. Their purpose, sadly, does not appear to be to promote new policies. They are, rather, reacting to a widespread feeling of dissatisfaction and uncertainty.

One reform that might help to make politics more meaningful and elections fairer, would be a proportional representation voting system. Austin Mitchell has long been an advocate for it, and he put the case again whilst chairing a debate at Westminster.

24.11.09
A Democratic EU?
Recently there have been some extraordinary opinions expressed about the lack of democracy in the EU. Is there really less democracy than in NATO or less than in the UN? The reason appears to be that eurosceptics and others do not think of the EU as an interstate organisation, but as the creature of some federalist ideology.

An American scholar, Andrew Moravcsik, has written a history of the EU, its main theme being that from its foundation onwards member states have primarily pursued their own national interests. As in other international bodies, all members are equal for some purposes, but not for others. The politics of the EU make much more sense when this is understood.

11.11.09
Mervyn King
Four times a year the Bank of England Monetary Committee issue an inflation report and the governor, Mervyn King, gives a very interesting press conference.

His message was that it will take a long time before we get back to normal. We should not put emphasis on small changes in the GDP growth figures. There will come a time when the economy appears to be growing very fast. This will happen because there is much unused capacity. We should then grow quickly without a danger of inflation.

There will, however, be quite a sharp but temporary increase in inflation in the next two or three months. When asked about quantitative easing (QE), he said they thought it was working successfully. In more normal times the quantity of money in the economy rose by about 5% per year. More recently the money supply had been declining at about 5% per year. QE helped to correct this.

3.11.09
Salaries in local government
Councils will soon be required to make public the salaries of their chief executives.

The incomes of bosses in the private sector have exploded upwards in recent years, and some in the public sector have tried to follow. This has increased costs in some local authorities. One solution being advocated is for more than one authority to share a chief executive.

How far North East Lincs may have a problem we do not know. We hope none.

23.10.09
Recession
The NIESR report, referred to on our front page, pointed out that the large loss of income in the national finances would have to be made good. This was not an immediate problem, but it would be unfair to future generations not to close the income gap as soon after 2012 as possible.

This gap amounts to about 6% of GDP. Examples of what might be done are: increase income tax by 7d in the pound, raise the retirement age to 70, reduce government consumption by 10%, freeze public pay for five years, or raise VAT on some present low-rated items. Each of these possibilities would reduce the gap by about a third of the necessary amount.

These suggestions were not given as proposals, but help to indicate the enormous problems that future governments will face. In practice there will no doubt be a mixture of polices, and other factors such as the growth rate will also play a part.

19.10.09
What about the BNP?
It has been in the political headlines lately - an extremist party which seems to have been gaining support. How far is this true, and, if it is, then why?

Part of the BNP's gains have been because of fewer votes being cast for Labour and Conservative. This was the main reason for their gains in the European elections. In a local by-election in Barnsley (15th Oct) Labour showed how an increase in the Labour vote could be decisive. Labour got 1520 votes, the BNP got 590, and Conservatives 89. In the same ward the BNP received 311 votes in 2007, and 615 in 2008.

In another by-election on the same day, a Lincolnshire CC seat in Boston, the Conservatives won with 597 votes, but the BNP came second with 581, a majority of only 16. So for those of us concerned about the existence of extreme parties there is cause for concern. What to do about it is more controversial.

13.9.09
Public notices
What is the point of the Council having to have public notices printed? Rather obviously it is to inform as many people as possible of whatever they say. But the Council, or more accurately the ruling clique, think they should do only the absolute legal minimum. Hence they choose to use the local paper with the lowest readership. So much for their public spirit.

1.9.09
Austin and the Tobin tax
Adair Turner (of the FSA) has made the headlines by arguing that a "Tobin tax" should be introduced. It is of interest that Austin Mitchell supports this and has fairly recently asked questions in the House about it.

James Tobin, a well known US economist, suggested in 1972 there should be a small tax on all currency transactions - the purpose being to discourage currency speculation, as well as to raise money.

28.8.09
Icelandic debts
The Icelandic parliament has now agreed an arrangement to pay the British and Dutch governments for the money they spent to cover the losses of individuals in the Icelandic banks. Payments will be limited to a maximum of 4% of Icelandic GDP, and will start in 2017 and continue until 2023.

Payments to local authorities are a subject of separate negotiations. It looks as though we are in for a long drawn out business. A full repayment of the £7 million to the NE Lincs Council is anything but certain.

20.8.09
Resignation of Labour Councillor
The Labour Party will be sorry to see Jon-Paul Howarth leave the Party. He was sincere, intelligent, and held strong Labour views.

The resignation comes following a difference of opinion within the Labour Council group. It is understandable that Jon-Paul underestimated the culpability of the Liberal leadership over the Icelandic losses affair. The issue is deeper that it appears on the surface. It is also unfortunate from a Labour point of view that he failed to argue his case within the Labour Party. But what is done is done.

30.7.09
Telegraph advertising again
The issue of where the Council should place its advertising has at last come to a head. Should it support our main local newspaper?

All advertising has fallen sharply because of the recession. Local papers have lost much more advertising than has television or the national press. A number have already closed as a result. If we think that a local paper is important for our community, and we do, then the Council should certainly do whatever it can to help our main local paper

Where departments, such as planning, have an obligation to publicise information for the general public, they should use established media and cover the whole population, not just a legal minimum.

14.7.09
The Council and the Telegraph
In addition to Labour's vote of no confidence, the Tories also have a motion down opposing the Council's decision to transfer some of their advertising from the Grimsby Telegraph; both for the full Council meeting on Thursday (16th July).

The surprising thing is that, though the budget details last December included the provision to divert some advertising, the Tories only now seem to have woken up to the implications. The community needs a local paper, and local advertising is a key part of its income. Whatever the outcome of the vote it is to be hoped that the Council's policy will be adjusted to support the Telegraph.

7.7.09
Losses again
An Icelandic Saga in North East Lincs.!! The Labour Party want a change of leadership of the Lib/Dem group. In political terms the Lib/Dems have handled the bank loss issue very poorly. They have shown themselves as both weak and unaccountable.

If the no confidence motion is carried the position of the Lib/Dems is inevitably damaged. They are already beginning to dig themselves into a hole. The promise to improve efficiency to pay for a council tax standstill implies that they have not been concentrating on improving efficiency, even though a number of reports have shown it to be both possible and necessary.

28.6.09
More criticism of the Council for its losses.
No need here to repeat the Public Interest report of the Audit Commission pointing out the fundamental weaknesses in the Council's arrangements. They confirm the criticisms we have made here. The Telegraph report showed how damning it was.

The most striking features of the scandal are the pathetic excuses of the councillors. The Council had eighty to ninety million pounds in relatively short term investments. It was well known that there had been a significant increase in levels of risk. Yet the Councillors concerned had apparently taken no interest at all in the investments or in the principles governing them.

20.6.09
The Council Cabinet
It did look as though the number on the cabinet was this year increased more for internal political reasons than to improve council efficiency. If nine are preferred instead of eight, then the right policy would have been to reduce the allowances proportionately.

It is not at all clear that such large allowances are either needed or earned. Failure to oversee major council investments suggests that the actual workload of cabinet members is not very onerous.


8.6.09
After the election
It is sad to lose Richard Corbett as one of our MEPs. He was well informed, the author of a standard work on the European Parliament, and was recognised as having one of the best blogs on Europe. His replacement has spent a lifetime in extreme right wing politics, and is unlikely to further our interests in Europe. If he is anything like the UKIP MEPs he will be largely ineffective and give the UK a bad name. All the UKIP MEPs were, incidentally, climate change deniers.

30.5.09
An anti EU contradiction
Much of the anti EU case is that the EU makes most of our laws over which we have little control, and that in effect we are ruled by the EU. If this were true, you would have thought that British newspapers would have reported what was happening in Brussels. But they don't. To add to this contradiction, most correspondents, who used to be based in Brussels, have gradually been withdrawn. As a result what reports there are, are few in number and sometimes inaccurate.

26.5.09
An odd ballot paper
It was surprising to find as many as 12 parties on the ballot for the European parliament. Most people will not have heard of several of them. They no doubt enter not with any hope of winning, but because they may have a free leaflet delivery.

The odd thing about the ballot was that it was not in strictly alphabetical order. The Labour Party came under T not L, where it should be.

23.5.09
The Council AGM
The Labour Party was not prepared to join any alliance to give any party complete control of the Council. Instead they accepted a Liberal run council, but voted for Conservatives to chair the scrutiny panels, thus strengthening potential opposition - a warning shot to discourage the Liberals from doing anything rash. The Lib/Dems have 19 Councillors. the Conservatives 16, Labour 5, and there are two Independents.

The annual meeting lasted longer than normal, partly because no one party could dictate who was to chair various committees and who was to represent the Council on outside bodies. Then, just to make matters worse, a recorded vote was demanded for most posts (each Councillor has to state which nominee they support, or to abstain). Many of the posts are not of great political importance, but they do matter to Councillors, since in many cases they will get a monetary allowance. Who does that remind us of?

19.5.09
Large Incomes
Following the revelations of the enormous earnings of many bankers, there seems to be a more general public reaction against others also receiving very large incomes. It has shown up in some company AGMs.

The median income in this country is around £24,000. That means there are as many people earning more than this as there are people earning less. MPs are paid more than two and a half times £24,000. There are, moreover, some publicly paid individuals in this local authority who are paid nearly twice as much as MPs.

At least such people pay tax. There are some in large companies being paid very much more still, and some pay very little tax. It is time that earnings and tax returns were publicly available (rather in the same way as wills are). What is the betting that such a move would be bitterly opposed?

12.5.09
MPS' Expenses
We watch in amazement as "legal" appears to be synonymous with "right", and exploiting expense loopholes, as with tax loopholes, becomes the norm. It is a crisis of government, and adds to the argument for a change in direction from too much centralisation to much more decentralisation. See also more comments here

7.5.09
The Council's losses in Icelandic banks
It should be possible for the N E Lincs Council to regain some of the losses from its Icelandic investments. But perhaps not much. Charities are likely to get the first bite. Then the LGA or whoever else doles out the money to Councils will give a low priority to the Councils classed as "negligent".

It looks as though N E Lincs will get very little.

3.5.09
Banks
So far this year 25 US banks have failed. This is not as ominous as it may sound, as there are many banks in the USA, each based mainly in one state, and there has been a steady record of failures in the past. It does though fit into the picture of continuing difficulties for many banks in the world. (4.5.09 - the up to date figure is now 32, more than the whole of last year).

28.4.09
Workers' Memorial Day
It is now a regular event in Grimsby (organised by 'Nobby' Styles). There is a short service, and flowers laid by a number of Unions, Companies and other bodies.

The object is firstly to remember those who have died or have been injured - 241 killed and 135,771 injured, and secondly to draw attention to the need for greater efforts to prevent accidents, and ensure help and compensation where required.

At the beginning of April Austin promoted an early day motion in the House of Commons calling for an International Workers' Memorial Day.

25.4.09
The budget in retrospect
In most ways it was a good budget. Help was given to many of those who will suffer from the economic downturn

. It is arguable, though, that the mood was wrong. As a country we have been living beyond our means (the reasons are debatable), and we need to pull together to get through it. An increase in tax is necessary, and should have been shared by all. Our present tax system is regressive, meaning that the poor pay proportionately more than the rich. The standard rate of income tax should go up as well as the higher rates.

8.4.09
Austin's Blog
At last Austin's blog page has had a makeover. It is now much easier to find ones way around it; it is easier to read, and has a pleasant look. To see it click here (or go to the contacts page)

24.3.09
Election in Yarborough Ward
Yarborough Ward is too big. It stretches from Cromwell road to Laceby road, and houses something over 5000 households. This makes it hard for any political party to cover it comprehensively in a three or four week election. It also makes it difficult to find a common feeling in the ward. A general lack of interest probably comes closest.

In recent years the ward has been represented by Liberals, and before that by Labour. In the national polls the Conservatives are in the lead, but if anything by less than last May. Locally the Lib/Dem/ Conservative coalition does not seem to be working well, and have come in for some criticism recently. Thus the result is uncertain, though we do feel our Labour candidate, Mike Taylor, will do well.

18.3.09
Icelandic losses - again
By coincidence the Council have published an internal report, and the BBC broadcast a File on Four programme about Icelandic losses, at the same time.

The Council report repeats, what we already knew, that an official made an administrative mistake at the beginning of 2008. No Councillor, of course, had any responsibility ! The fact of a world financial crisis, and the fact that a British bank went bust in the autumn of 2007, appears not to have been sufficient to cause any counsillor responsible to have a careful look at the position. Remember the Council had £89 million invested - £7 million in Iceland.

The most interesting fact (as well as the observation that councils "sleep walked into it") was that Icelandic debt has been selling at between 0.5 pence and 9.5 pence. In other words councils are likely to lose up to 90% of their capital (apart from the loss of interest).

This seems to us a disgraceful state of affairs.

13.3.09
Grimsby Telegraph
Recessions don't select their victims. One group now suffering are newspapers, and any others that depend for much of their income on advertising. So it is no surprise to hear that our Grimsby Telegraph is having to cut costs; and that means some people also losing out.

The Telegraph is an important part of our community. There is no suggestion it will close, but inevitably the quality of service may fall a little.It is therefore doubly unfortunate that the Council are due to make cuts in their advertising with the Telegraph. Is it worth the small saving the Council may make?

9.3.09
Typical Council Failure
Governments have a habit of promoting specially aimed programmes with positive sounding names. Such a one was "Supporting People". It was to help "vulnerable people to improve their quality of life", provide housing related services and so enable greater independence.

The programme had a grant of over £6 million per year. The inspection last year assessed the North East Lincs programme as a "poor" no-star programme that has "uncertain prospects for improvement".

The report wrote "the programme is not sufficiently considered in the Council's objectives". In more common language it was given a low priority.

7.3.09
CPA and Council Finance
The Council's financial management was one of its weak points in the recent CPA report. It helps to confirm the criticisms which Labour has made - mainly about their large losses in failing Icelandic banks.

18.2.09
Council's budget
Thursday 19th february is budget night. It sets out the Council's planned income and expenditure for the next three years. It is thus extremely important.

Labour will seek to make some changes, but, with a very large majority against them, are unlikely to succeed. Added to which, the Council standing orders limit severely the number of times any Councillor may speak. So don't expect much change.

10.2.09
CAB Cut
One of the Council's most thoughtless cuts was one against the Citizen's Advice Bureau. It is a service required more than ever in financially difficult times. It has taken some time, but we understand that this cut is now being rescinded.

5.2.09
A curious cut
Given the persistent cold weather this winter, a proposed cut of £40,000 in the winter gritting budget looks rather untimelyy. There is still time to reverse it, and we do not know all the deatails behind it.

2.2.09
"British jobs for British workers"
Let's start with football !

28.1.09
Another "efficiency"
Library opening hours are to be rationalised (though not this year). This is no doubt based on the assumption that those people who work during the day will not want to borrow books. On the other hand, if they do, there will be fewer books as the bookfund is to be reduced by £30,000.

25.1.09
An "efficiency" cut
Rather typical of the Council's ideas for improving efficiency is a proposal to save £30,000 by reducing the opening hours of customer accent points to 9am-5pm !!

22.1.09
Local Authority Budget
When is a reduction in the cost of a service an "efficiency", and when is it just a cut? In the Council's budget all departments have lists of "efficiencies" -- always meaning a planned reduction in expenditure. And in Council jargon "efficiencies" always means "improving" something.

Take a small example. There is a proposal (Telegraph 22cnd Jan) to reduce school crossing controls by a third. This could mean that they have found that a third of the manned crossings are not necessary, or that another way has been found to make the crossing of some roads safe, or it could just mean cuts, or perhaps a mixture.

20.1.09
The Council's losses from Icelandic banks - again.
At first the Lib/Dem councillors took the line that anyone could have made the mistake, as there were also many othe councils caught. They soon realized that this wouldn't wash (to make an extreme analogy, no burglar would get off just because there were lots of others making similar mistakes). So now they claim it was simply a mistake of procedure - they think it will do to find a scapegoat from amongst their staff.

Yet, given the banking crises in 2007 in both the US and UK, and the rumours swirling around other banks, you would have thought it was something that should be investigated. For example, was the acceptable level of credit rating now still right?

8.1.09
Re branding N E Lincs
According to the Council website the consultants's report has received widespread support. How can this be when the report is not even on the website? A brief report in the Telegraph is no basis on which to make a proper judgement. All we have seen up to now could have been written by a council officer

The Council is, rightly, not slow to publish such reports. And this one is said to be 40 pages, not especially long. The suspicion must be that the report is critical of the Council's lack of vision. It does seem odd that it is thought necessary to employ consultants to provide a vision.

There may be a case for "Greater Grimsby" but it is not obvious. One wonders whether it is favoured in Cleethorpes and elsewhere.

4.1.09
One thing the Council should do.
This is the time of year when many people begin to think about their summer holidays. They are less likely than usual to fly overseas. Yet there are plenty of good place to have holidays in Britain. So what about stepping up the promotions for holidays in Cleethorpes, Grimsby, and area.

There are lots of attractions as well as sea and sand: e.g. cycling, bird watching, old churches within easy reach.

20.12.08
Academies, David Ross, and all that
The affairs of David Ross would normally be mainly of curiosity interest. He is, however, a sponsor of one of the three academies in North East Lincs. and the sponsors were supposed to provide £2 million towards each school being sponsored.

David Ross is very rich indeed. He is thought to have taken out a loan, possibly of more than £100 million, to invest in commercial property. The loan was backed by his shareholdings in several companies, but unfortunately for him the value of both commercial property and of his shares have fallen steeply. We have no idea of what are the financial implications for David Ross, but at least he may not have to pay the £2 million for the Havelock academy.

We hear that no sponsorship money has been provided at all. This does seem very odd. Meanwhile all three academies are going their own way, which inevitably makes it more difficult for the Council to coordinate education policies in the area as a whole. We still feel it is unfair to have had as many as three academies dumped on us.

16.12.08
A little on how our council is doing
Our council, like any good business, regularly reviews how it is doing. This usually means measuring results with targets. There are a large number of targets, and there are commonly a few laggards.

One target not met, and where the result was worse than last year, was the number of racial incidents. Given that in this area the council can have only a limited influence, especially in the short term, it is something mainly to note and keep an eye. Another one missed was the length of stay in bed and breakfast accommodation of households with dependent children.

It is said that after the homeless have been taken care of, there are very few houses available to rent from the social landlords (e.g. Shoreline). The council policy for the homeless is to tackle the problems of families before they become homeless. It doesn't seem to be working too well. The other side of the problem is simply the shortage of new houses to rent, and is as much a national problem as a local one. There is a very great need to find a way to get many more such houses built.

12.12.08
Government policies for limiting the recession
The Tories and now the German finance minister, Mr Steinbruck, have criticised the government for excessive expenditure leading to high deficits and a increase in government borrowing.

Anatole Kaletsky, former economics editor of The Times, writes that "the Tories are plain wrong to attack the increase in borrowing planned by the government for next year". He says that when a depression is threatened "printing money and spending it on public works or tax cuts, far from being profligate or imprudent in such conditions, is the only responsible thing for politicians to do".

Paul Krugman, this year's Nobel Prize winner for economics, writes: "The world economy is in a terrifying nosedive, visible everywhere. Yet Mr Steinbruck is standing firm against any extraordinary fiscal measures...."
On his opposition to a united European policy of fiscal expansion he writes: "Mr Steinbruck is therefore doing a remarkable amount of damage".

4.12.08
Council Tax
Next years government grant to local authorities shows an increase of 4.2%. If you add in the improvement in efficiency which the council claims it is achieving, and there shouldn't be any council tax increase worth talking about.

The government is also giving councils greater discretion on how they spend the grant. Money allocated for the government's "Supporting People" programme no longer has to be spent only on that programme. In council jargon the money will not be ring fenced.

The "Supporting People" programme was to give vulnerable people the opportunity to improve their quality of life. There will be an obvious temptation for the Tories and Liberals to pinch some of this money for other pet projects. Labour Councillors will be working to ensure that the vulnerable and disadvantaged do not lose out.

27.11.08
N E Lincs Council's investments
At the end of September over a third of the Council's investments were with Building Societies. This seemed a little odd, as their main job in life is lending money for houses, and the value of these has been falling rapidly. That there was an element of risk is confirmed by recent lowering of the credit standing of four of them.

This is not a criticism of present investments. Many will have changed since the end of September, but it adds to our accusation that the placing of Council investments was not monitored as closely as they should have been. tiated a loan from the International Monetary Fund (IMF) for $6 billion (about £3.5 billion). This is to stabilise the Icelandic economy. And the main banks have been nationalised.

Icelandic debts amount to $61 billion. With the bonds of their nationalised banks selling at about 3% of their nominal value, there must be great concern about the extent of available assets.

Ratings given by the credit agencies have been suspect for some time. Margaret Eaton, chairman of the LGA, has said:"No council should rely solely on credit agencies and must use their financial nous..." So there must be considerable doubt about the proportion of the £7 billion that North East Lincs will be able to recover.

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