Why UK Chancellor George Osborne will not be allowed to use the axe on the Public Sector – John Gelmini

George Osborne visits  Thessaly Community Project

George Osborne visits Thessaly Community Project (Photo credit: conservativeparty)

Earlier today, I re-blogged  an excellent article from Benedict Brogan, the Deputy Editor at the Telegraph entitled:

Osborne is sharpening his axe – but will Cameron let him use it? – Telegraph Blogs

I added my two cents worth of comment and received a comprehensive response from John Gelmini which I am re-blogging below. Whilst, I do not necessarily agree with all of John Gelmini’s arguments, I endorse the broad thrust and direction of his argument. Do you have an opinion that you would like to share?

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Whatever cuts George Osborne makes will be too little too late and all because of Cameron and Clegg’s cowardice and the complacency of a Cabinet of largely intellectual lightweights unable and unwilling to act with the speed, decisiveness and ruthlessness to get the job done.

The evidence is that George Osborne will not be allowed to force County Council, Police and Fire Command mergers with suitable de-layering and the sacking of 50% of Local Authority workers who are not needed and never were.

He will do nothing significant to reduce the number of unnecessary Civil Servants, nothing to curb Royal expenditure and the Civil List, and he will do nothing to stop the waste of Afghanistan, the maintenance of a naval task force off the coast of Iran, the use of Special Forces in Syria, and the disgrace of the overseas aid budget overseen until recently by “know your (blank) place”, Andrew Mitchell, a thoroughly useless and unnecessary Minister, even before his recent outburst.

He will impose benefit cuts which the public approve of but will like a lot less when they are applied to them and he will do nothing to create jobs and growth on the scale required.

The new bank will not be up and running until mid 2014 and with just £10 billion of lending capacity it will be too little too late.

Variable taxes on food to reduce the obesity crisis and the costs of the NHS which are out of control will also not apply and the MOD will carry on wasting money along with the Home Office which is failing to control immigration.

Worse than that, because David Cameron has insulted the Chinese publicly so many times, we will not get their Sovereign Wealth Funds building needed infrastructure, so building workers will remain on the dole and blue-collar unemployment will remain higher than it needs to be even after cuts.

Frankly, we would do better outsourcing the entire Government to the Swiss or the Singaporeans, both of whom would do a far better job than this sorry collection of lame ducks, idle Civil Servants, establishment, “has-beens” and public school educated Ministers lacking in drive, any sense of urgency, or commonsense.

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Full employment and low taxes in Europe – Radical transformation, austerity and the troika

English: A map showing European membership of ...

English: A map showing European membership of the EU and NATO. EU member only NATO member only Member of both Česky: Mapa zobrazující členství evropských států v EU a NATO. státy pouze v EU státy pouze v NATO státy v NATO a EU (Photo credit: Wikipedia)

Over recent months I have pondered over the following questions about Europe:

  1. How should national Governments and the EU reduce unemployment and create full employment?
  2. Is there an alternative to the over-arching policy of austerity?
  3. Are full employment and low taxes mutually exclusive?

Regular readers of this blog will know that I favor a balanced approach focusing on growth and medium term fiscal discipline.

What worries me most about austerity is that it is both damaging and ineffective in the context of many European countries.

I have consistently argued in favor of a gold standard for policy-makers, namely:

  • Strong leadership
  • Overarching vision
  • Coordinated and carefully analyzed strategy, and
  • Fully risked assessed, properly costed  and effectively managed delivery plans

For me, the troika of the ECB, IMF and the EU have the wrong priorities. The ECB and the national central banks should have their powers extended to resemble the US Federal Reserve and include responsibility for full employment, as well as inflation management.

In my judgement, National governments and the EU need to undertake a comprehensive strategic review, and then embrace my proposed “gold standard”.

Most importantly, a zero-based review is required of the national Public Sectors and EU bureaucracies, radically transforming public services across Europe:

  • Embracing a customer focused strategies, based upon my radical innovation and continuous innovation proposals
  • Achieving top decile performance consistently in global bench-marking
  • Eliminating restrictive labor practices and outsource all non-strategic services

For more comprehensive suggestions see some of my earlier blogs, incuding:

This, of course, is very much a “stawman” proposition.

What do you think?

Please share your views, whether you agree, disagree or have a completely different perspective..

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