A
flyer drops through the door, from “Stockwood Gold”. It offers
money in a hurry. All I have to do is take my unwanted jewellery,
gold, silver and platinum – or anything else of value - and turn it
into cash at the shop that's just opened up the road. Recession
generates its own economic intiatives. It's an ill wind....
Much
the same seems to be happening to the city as a whole. Bristol
needs money in a hurry if it's to turn all those ambitions for
transport and education into reality. The desperately needed Bristol
Metro, for instance, to bring the rail network into something
resembling a decent transport system.
It's
that Metro, along with the magic figure of £1 billion, that features
in the Post's headline for the 'City Deal' package, as dreamed up by Government ministers and the Local Enterprise Partnership, and
faithfully relayed with the same spin to the public by unquestioning
media. Just like the flyer for the pawnshop, it's strong on promise, but
weak on detail of what the City Deal is really about.
What
is clear, though, is that that no new money is on offer. What
Bristol gets is the chance to borrow, on the strength of hoped for
future income. That income will (local, national, and global
economies permitting) come from the extra growth in business rates
from the enterprise zones, generated by adopting policies that
favour business above all else; planning concessions, land release,
deregulation etc. If business still doesn't deliver, it's the
people who pay the bill.
The
announcement comes within 24hrs of a further £50billion being
created out of nothing to hand to the banks, on the unlikely premise
that they in turn will give the economy a boost by lending it on.
You'd think the Bank of England might have handed 2% of it direct to
Bristol and Network Rail to get on with the job. But you probably
don't understand the financial system.
The
publicity around the City Deal is thorough enough to name every
possible reopened railway station in and around Bristol - but it
doesn't actually say who manages all the change, who makes all the
decisions, or how they demonstrate public support. There are vague
references to 'Greater Bristol' and to the Local Enterprise
Partnership, even to the elected council (or, in future, the City
Mayor). Whether your vote (in Bristol or its neighbours) makes any
difference to the city's progress looks less likely than ever. A
new mayor, whoever it might be, will find it very hard to resist the invitation to borrow enormous sums, even if it commits the public
into a high risk enterprise. Taking risks is not what local
authorities are supposed to do. Conventional wisdom leaves that to
the private sector.
It
does look like part of the price of Bristol's £1 billion 'right to
borrow' will be a fire sale of public assets. The City Deal
establishes a “Bristol
Public Property Board” to manage
“up to £1 billion of Bristol City Council assets and an
estimated 180 land and property assets in the ownership of a range of
other public sector partners. Integrated management of the portfolio
will help to unlock more land for economic growth or housing, use
assets to lever in other public and private sector investment and
generate operational efficiencies by co-locating services.”
Selling
the family silver, in other words. I dare say “Stockwood Gold”
would buy it.
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