05 May 2014

Week 19 2014

Tendring Topics……..on line          

Call the Midwife!’

          Clacton isn’t a town noted for its political activists and its violent (or even non-violent) marches and demonstrations. It is astonishing therefore that there were two protest marches, for the same cause, one on Saturday 26th April and one on the following day. The cause was the hospital authority’s decision to close the Maternity Units in the Clacton-on-Sea and in Harwich and to concentrate maternity services in Colchester.   The reason is not because of shortage of midwives or other staff in either Clacton or Harwich – but because of a shortage of midwives in Colchester!   They need Clacton’s and Harwich’s midwives to make up the numbers.

            This is said to be a ‘temporary arrangement’ but we suspicious Clactonians suspect that it’s one of those ‘temporary arrangements’ that go on for longer than expected – until, in fact, everyone comes to accept them and it is then decided to make them permanent. `

            No-one likes to see a local service closed down and local people compelled to go further to a larger more distant centre, but the nature of the maternity service and the geographical situation of both Clacton and Harwich make it doubly undesirable in our Tendring district. A glance at a large-scale map of south-eastern East Anglia will make it clear that the Tendring peninsula is almost-an-island bounded by the estuaries of the rivers Stour and Colne, a relatively narrow isthmus extending from Colchester to Manningtree, and a wide length of coastline with the port of Harwich/Parkeston and the popular holiday seaside resorts of Dovercourt, Walton-on-the-Naze, Frinton-on-Sea, Holland-on-Sea, Clacton-on-Sea, Jaywick Sands, St Osyth and Brightingsea.

            The only road access is through that Colchester/Manningtree isthmus from which highways fan out to serve resorts which attract motorists from London, the Midlands and the whole of East Anglia to their safe, sandy beaches, seaside holiday attractions – and the lowest average annual rainfall in the United Kingdom!  It follows that throughout all the summer and at weekends in the spring and autumn (particularly bank holiday weekends) those roads are often clogged up with holiday traffic, sometimes reduced to a snail’s pace by sheer numbers, or by the occasional road accident.

            Tough on the mother in labour, perhaps with her first baby, stuck in a traffic jam somewhere between Clacton – or Harwich – and Colchester!  I don’t suppose that the time-and-motion experts who calculated that under ‘normal circumstances’ neither journey should take much more than half an hour, even thought about that.  Babies in a hurry to be born know nothing about normal circumstances, holiday traffic or traffic jams.

            I’m not surprised that Clactonians have protested, marched and demonstrated against this stupid and thoughtless decision of the hospital authorities.  Why though were there two almost identical marches with two lots of protesters?   The Saturday march was the Conservative march, organised and led by Conervative Tendring District Council.  The Sunday march was the Labour march and was organised by the local Labour Party and led by the prospective Labour candidate Tim Young..  The closure of Clacton and Harwich’s maternity units is not a political issue.  Gilbert and Sullivan wrote in one of their comic operas ‘Every little man-child that is born alive is either a little Liberal or a little Conservative’.  Luckily they don’t know that and, luckily or not, nowadays it isn’t only male babies involved, nor is it limited to just two parties.

            I think it a great pity that the two main parties hadn’t got together for a united protest march, thus demonstrating that compassion and common sense aren’t the sole prerogative of one party, and that they can unite when the occasion demands it.  They might have persuaded some of the others to join in – the Lib-Dems, the Greens and the Ukippers (I’m sure they’re convinced that it’s all the fault of ‘Brussels’) might well have joined them!

Those Market Forces

            I don’t like living in a society with an economy reliant on Market Forces.  I believe   that co-operation is better than competition, that we shouldn’t all be trying to get as much as we can for as little as we can get away with, and that we shouldn’t need to follow the advice to ‘shop around’ and change our power supplier, our banker, our savings account, whenever it may seem that it would pay us to do so. Old people - and there are a lot of us in this area - don't like unnecessary change. The cheapest is rarely the best and the supplier or the banker may change his charges as soon as you put your phone down. In the 17th and 18th century Quaker businessmen – grocers, brewers, bankers, manufacturers – made their fortunes by declining to yield to market forces.  They bought in or made the products they sold, added just sufficient to make themselves a reasonable living and stuck to that price and to that quality of goods.  Quaker businesses may not always have sold the cheapest goods but customers could be quite sure that they hadn’t been watered down or adulterated, that the price wouldn’t be put up if there were to be a sudden shortage and  that there would be no hidden ‘extra charges’.   That policy benefited both the buyer and the seller.

            Oscar Wilde once defined a cynic as someone who knows the price of everything and the value of nothing.  The ethics of the market place have made us a nation of cynics.   We’re interested only in prices.  The only ‘value’ market traders recognise is the highest price that goods or services can command at any given time ‘in the open market’.   A diamond ring commands a higher price than a shovel (though there are situations in which a shovel could save your life and a diamond ring would have no value whatsoever), and a merchant banker (a money lender) can demand a higher price for his services than a brain surgeon!

            Market prices depend upon supply and demand.  Increase the demand for any desirable product without increasing its supply will raise that product’s price as surely as night follows day. 

            It was this axiom that made me predict confidently in this blog that the government’s help to buy scheme for would-be house buyers would have the effect of raising house prices.  You will recall that a major factor in the creation of the financial crisis from which we hope we are now emerging, was the unwise lending of large sums of money for the purchase of homes.  Because there were not enough homes for hopeful would-be purchasers to buy, the price went up…and up, until it toppled over.

            Many house-buyers had taken on a debt they couldn’t hope to pay off.  Hundreds were rendered homeless and lenders were left with bad debts that could have rendered them bankrupt had the government not bailed them out – with our money!

            Determined not to make the same mistake again, banks and building societies increased the deposit they required from would-be buyers to as much as 25 percent of the price of the property, effectively putting home ownership out of the reach of most first-time buyers.  However David Cameron and George Osborne, determined to pursue the chimera of ‘a nation of home-owners’ introduced their ‘help to buy’ scheme which offered an additional loan to help with that deposit so that the initial sum required by the house-purchaser would be no more than 5 percent of the price of the property.

            This has had two totally predictable effects. Demand for homes once more greatly exceeds supply and – as I had foreseen – house prices are again rising well ahead of general inflation.  The other effect is that the government has, by guaranteeing most of the required deposit, taken on a debt that the professional money lenders had thought was too risky – and, without consulting the electorate – has done so with taxpayers’ money!   This has clearly worried the professionals and they are now asking would-be borrowers a series of very intrusive questions before they will arrange a mortgage. ‘How much do they spend on holidays, on dining out, on alcohol, on entertaining, on children’s education and other financial commitments, and how they would manage their mortgage repayments if – or rather when - interest rates rise?

            The best response?  It’s surely to accept that home ownership is not everybody’s obvious choice.  Repeal the ‘Right to Buy’ legislation and encourage local authorities to build homes for letting as they did for a century before the advent of Margaret Thatcher – and allow those same authorities to allocate those homes as they think best.  In a word; to restore some of the democratic local decision making that is an important aspect of the ‘localism’ to which the government pays lip-service but has been systematically destroying since taking office.


































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