Nearly 100 Scottish contracts awarded by Swedish wind-farm owners

1c_supply_chain_info_pack

Vattenfall, the Swedish owners of several windfarms and the European Offshore Wind Deployment Centre (EOWDC) project off the north-east coast say they are: ‘committed to maximising the benefits the project can bring to the north-east and Scotland.’

So far, they have awarded nearly 100 contracts to local companies including a ‘significant deal’ with Peterhead harbour. There will also be a £3 million community investment fund for the North-east.

https://www.energyvoice.com/otherenergy/163803/vattenfall-aberdeen-wind-farm-development-brought-nearly-100-scottish-contracts/

You may be thinking it would be better if the project was owned by a Scottish company, but I wonder if it would. Many of our top executives and board members are privately educated, self-centred and incompetent, with bonuses and dividends the only things in their minds. Maybe I’m being naïve here, but I wonder if Swedish business culture is not a bit more progressive, long term thinking and consensual in terms of owner-worker and community relationships.

Billions to flow to UK Treasury as Scottish oil prices reach nearly $65 per barrel

Dec-4-Flickr-Treasury-kurt-b

From Bloomberg in Energy Voice today:

‘Brent for April settlement climbed 26 cents to trade at $64.59 in the London-based ICE Futures Europe exchange.’

https://www.energyvoice.com/oilandgas/163847/oil-set-first-weekly-gain-month-us-dollar-weakens/

On 6th February 2018, I was able to write:

‘North Sea oil tax haul gushes to £1bn as crude recovers. Higher prices, increased production and lower costs drive revenue turn-round’

Pretty much ignored by the Scottish media other than reporting on BP profits, the Financial Times, free from a constant obsession with Scottish independence offers us useful evidence. They had more to say:

‘A £1bn boost to the Treasury will be good news for the Philip Hammond, the chancellor, who will give an update on the government’s budget in the spring statement in mid-March. HMRC declined to comment…. Production in the North Sea is also bucking the recent decline. Wood Mackenzie, the energy consultancy, expects it to average 1.9 million barrels of oil equivalent a day in 2018, its highest since 2010. BP last week announced two new discoveries in the North Sea and reiterated its ambition to double production from the region to 200,000 barrels a day by 2020….’

https://www.ft.com/content/995ad5c8-09c5-11e8-839d-41ca06376bf2

Add to the above 1.9 million barrels anticipated from the North Sea, the oil from the new fields West of Shetland and we can expect well over 2 million barrels per day or 730 million per year. So, total revenue (730 000 000 x 65) for the producers could be at least $47 billion. With production costs nearing $12 per barrel according to the BP CE, profits of around $40 billion per year can surely generate tax revenue of several billion.

https://www.oilandgaspeople.com/news/15098/bp-chief-says-north-sea-costs-are-15-per-barrel/

I look forward to the chancellor’s statement.

Scotland remains only part of UK with strong trade surplus as Scotsman attempts to deceive with selective and out-of-date figures.

2017_RTS_Q3

https://www.uktradeinfo.com/Statistics/RTS/Pages/default.aspx

The above graph, released in December 2017, shows Scotland to be the only part of the UK with a strong balance of trade surplus and reveals the South of England to have a major trade deficit which is leading to the massive loan debt we all have to share but, under the headline:

‘Scottish exporters fall at double the UK rate’

the Scotsman, today, went on to say:

‘The number of Scottish businesses exporting has fallen to less than a third, a new survey has found. The latest Business in Britain report from Bank of Scotland shows the number of Scottish firms exporting has dropped to 29%, down eight percentage points from 37% in June 2017. The number of businesses exporting in Scotland has fallen. Across the UK the number of firms exporting dropped four percentage points in the same period to 40%.’ export fall Just under a quarter of Scottish companies (24%) said they have taken a strategic decision not export, a marginal 2% decrease in the past six months from 26% in June 2017. A quarter of firms (25%) said they had decided to focus more on UK trade in light of Brexit.’

https://www.scotsman.com/news/scottish-exporters-fall-at-double-the-uk-rate-1-4690011

You need to read this carefully to see what they’ve done. First, Scotland’s strong balance of trade surplus in 2017 was achieved by 26% of our companies. It’s not the number of companies that matters it’s the total amount earned, and the Scotsman does not have this data. Scotland exports more per capita with 26% of its companies than the UK does with 40% because a relatively small number of companies, exporting Whisky, Gin, Seafood especially Salmon, oil and gas, earn far more than the larger number of smaller UK companies selling cheese or cakes.

Second, the Scotsman inserted this link in the article:

‘READ MORE: Scotland suffers £4 billion export fall’

which is based on 2016 prices when oil was trading at around one-third of its current value. This link is hopelessly out-of-date and potentially misleading – deliberate or just stupid?

Third, the Scotsman is not using measures of actual trade activity but the returns from a Bank of Scotland survey to which only 125 Scottish companies replied. It’s just a sample and quite a small one. See this:

‘As at March 2017, there were an estimated 365,600 private sector enterprises operating in Scotland – the highest figure since the time series began (in 2000).’

http://www.gov.scot/Topics/Statistics/Browse/Business/Corporate/KeyFacts

So, this article is based on research with an infinitesimally small return rate of just 0.034% which is laughably invalid.

If I was paid to write the kind of shitty propaganda we see in this Scotsman article, I’d have to put two fingers down my throat as soon as I got home.

Massive increase in environmental compliance by Scottish businesses under SNP

SEPA_Logo

According to The Scottish Environment Protection Agency (SEPA) and reported in Insider, 91.7% of all of Scotland’s nearly 5 000 licences were assessed as excellent, good or broadly compliant in 2016.

This is a major improvement from only 72.5% in 2009.

The SEPA Chief Executive said:

‘Every day, SEPA works to protect and enhance Scotland’s environment helping communities and businesses thrive within the resources of our planet. As part of that we’re clear, environmental compliance is non-negotiable. Every Scottish business will comply with the law, and we’ll work to ensure as many as possible will go even further.’

https://www.insider.co.uk/news/scots-business-environmental-compliance-sepa-12031690

If the trend was in the other direction it would be an SNPBad story so…

Audit Scotland’s Nursery provision report based on flawed methodology and naïve assumptions. Tories and Labour joyful as they feast on it.

audit-scotland

Here are the main points from the report which have cheered the Unionist parties so much:

‘There are significant risks that councils will not be able to expand funded ELC to 1,140 hours by 2020. In particular it will be difficult to increase the infrastructure and workforce to the levels required, in the limited time available. The Scottish Government should have started detailed planning with councils earlier, given the scale of the changes required. The Scottish Government expects the cost of delivering 1,140 hours of funded ELC will be about £840 million per year. Councils were required to prepare their initial plans for the expansion without some important information about how the system will operate from 2020. While councils’ plans will change over time, initial estimates of the cost of funded ELC following the expansion to 1,140 hours are about £1 billion per year, significantly higher than the Scottish Government’s figure.’ (p.5)

http://www.audit-scotland.gov.uk/uploads/docs/report/2018/nr_180215_early_learning.pdf

Completely ignoring any possibility of any fault in the councils, the Tory and Labour responses faithfully communicated by BBC Scotland, of course, are:

‘Conservative education spokeswoman Liz Smith said the report was “damning in terms of exposing the failures of SNP policy on child care”. For Labour, education spokesman Iain Gray added: “This independent report blows a £160m black hole in a flagship SNP government policy. Raising the amount of free childcare families are entitled too has been a cornerstone of the SNP’s offer to families – but this report reveals that, not only does the Scottish government not expect to fully fund it, but that it is also miles behind the levels of staff recruitment needed.”’

http://www.bbc.co.uk/news/uk-scotland-scotland-politics-43058121

Notice how Iain Gray is allowed a complete fib about government intentions but also seems confused as to who will recruit the staff?

However, back to my main concern, the methodology upon which Audit Scotland have based their report. It’s only been two years since I last supervised PhD projects and I’m going to assume that a funded national body with several researchers should be able to at least match that level. Here’s all the detail we get on it, on page 9:

Our findings are based on evidence from sources that include the following:

  • a survey of all 32 councils
  • interviews with senior staff in the Scottish Government, Care Inspectorate, Education Scotland, COSLA (COSLA chairman is Stephen McCabe, Labour, Inverclyde) and other national bodies
  • interviews with a range of staff in five fieldwork councils – City of Edinburgh, Glasgow City, Perth and Kinross, Renfrewshire and Scottish Borders
  • focus groups with partner-provider nurseries from the private sector
  • interviews with parents and carers, an online survey of parents and carers and a review of reports on the experiences of parents and carers
  • published information on ELC registrations and costs
  • a review of published evidence on the impact of ELC on child and parental outcomes
  • a review of councils’ expansion plans for 1,140 hours of funded ELC
  • a review of key documents including legislation and associated guidance, minutes of groups involved in planning for the expansions to both 600 hours and 1,140 hours of funded ELC, and council documentation about how ELC is delivered locally.

http://www.audit-scotland.gov.uk/uploads/docs/report/2018/nr_180215_early_learning.pdf

At first sight it looks impressive in terms of the access they’ve had but then you notice a lack of attempts to gather empirical, quantitative data with which you could triangulate the subjective, qualitative information they’ve gathered from a series of interviews (only 28 parents?), focus groups (only 5) and literature reviews. The key concerns they have about funding and time are not evidenced in any transparent statistical calculations or of the basis upon which the resulting estimates were produced by the councils, which the Audit Scotland researchers could then have analysed with a view to evaluating their actual worth. If all we have are the estimates unvalidated by any external evaluation, then the opinions of those interviewed, no matter how many nor how senior, are likely to be unreliable and, potentially, based on an agenda hostile to the government’s strategy. Is it at all likely that local government officers, often serving Labour and Tory administrations, would accept SNP central government costs and just get on with it? Is it possible that the Scottish Government’s accountants know what they’re doing and, also, know fine well that their local authority cousins expect to bid high first time?  As for the time required to expand the existing system, a full two years remain after a least one since the councils became aware of their task. This is not a revolution, merely an expansion of a pre-existing and well-established pre-school sector. Did Audit Scotland explore the possibility of some councils and the Labour-led COSLA being more concerned to obstruct than to implement? Indeed, why is it the Scottish Government’s role to ‘start detailed planning’? Shouldn’t that be a local task?

Surely, Audit Scotland have some sociologists familiar with such all-too-human behaviour.

Scottish social housing more accessible and cheaper than in rest of UK

24a98c31-cf59-4644-901f-4cfadf7e3cb8

As you can see from the above diagram in Scottish housing News, yesterday, more than a million people in Scotland are able to live in Social Housing. Around 23% of Scots have access to such housing compared to only 17 and 16% in England and Wales respectively. Also, the actual cost of social housing, in Scotland is up to 21% lower than in the rest of the UK. The Scottish housing minister said

‘Social housing in Scotland continues to be more affordable than England or Wales, which is vital at a time when UK government welfare cuts are having a devastating impact on people across the country.  We are increasing funding for discretionary housing payments – which significantly benefit those living in the social housing sector – by 5%, to over £60 million in 2018/19. That will enable us to continue mitigating the bedroom tax and provide a lifeline for those who need extra help. Since 2007 we have delivered nearly 71,000 affordable homes, with almost 70% of those being for social rent. Over this Parliament we have a commitment to deliver 50,000 affordable homes, including 35,000 for social rent. We have put in place a number of measures to deliver that, in addition to ending the right to buy, keeping existing social housing stock in the sector and protecting it for future generations.’

http://www.scottishhousingnews.com/19825/marginal-increase-number-social-housing-tenants-scotland/

Regular readers will know that Scotland is also building ‘affordable housing’ (the same as ‘social housing’?) at a faster rate than elsewhere in the UK and that the Scottish Government is showing a determination to keep it going. See:

Scottish Government increases supply of affordable housing and builds at more, perhaps much more, than twice the rate as in England

SNP Government overturn Tory/Independent-run Moray Council on affordable homes denial

£756 million of support for building affordable homes in SNP budget

I’ve lost track now of the many stories suggesting a different set of values is dominant in Scottish politics and society, not just in the SNP, which suggest Scotland is different enough to justify independence.

 

Scotsman wrongly labels council tax rises as ‘SNP tax rises’ and fails to understand value for businesses of SNP reducing taxation of majority lower income groups

5b0bd911-5be4-48d1-bcee-a118fe2d58ed

See this from the Scotsman today:

‘SNP tax rises could harm struggling High Street, retailers say: Finance secretary Derek Mackay’s proposal to increase income tax amid strong signs that local authorities are set to increase council tax has led to the Scottish Retail Association (SRC) saying businesses will have to work hard to attract consumer spending. All the evidence is that consumers continue to be careful with their spending at a time of uncertainty. With income and council tax rises coming in later this spring, along with inflation and potential interest rate rises, retailers will have to continue to work hard to encourage consumer spending in the months ahead.’

First, the Council Tax rises can only be described as such if they are brought in by an SNP council. Otherwise they will be ‘Labour tax rises’ or ‘Tory tax rises’.

Second, remember the budget meant that only Scots who earn more than £33,000 would pay more. 70% will pay less income tax next year if their income stays the same and 55% will pay less than they would if they lived elsewhere in the UK.

Third, reducing taxation on the least well-off 70% of the population will surely benefit many businesses. Those who are barely coping spend everything they earn on food, clothing, energy and other basics including a modest level of entertainment. If they pay a little less tax, they will spend a little more in shops. The other 30% who seem to worry the SRC so much, tend to have at least some monthly surplus they can choose to spend or to save and the modest increases in their taxation levels will not force them into cutting back except perhaps on foreign holidays or cars, neither of which enrich the vast majority of our ‘High Street’ businesses.

https://www.scotsman.com/news/politics/snp-tax-rises-could-harm-struggling-high-street-retailers-say-1-4688574

 

‘Scotland’s top private firms employed more people, increased salaries and witnessed a rise in profits in 2017.’

index

Another indicator of real economic growth and well-being to counter the doom-mongers of the Scottish media using the near useless GDP and GERs figures to undermine the case for autonomy, see this from the Scottish Business News Network yesterday:

‘Data published in Grant Thornton UK’s annual Scotland Limited report assesses the commercial performance over the past year of Scotland’s top 100 privately owned limited businesses. This year’s report reveals a total combined turnover of £21.4 billion, up from £20.8 billion in 2016. Total profits before taxation increased from £1.4 billion in 2016 to £1.6 billion. Meanwhile, the total number of people employed by the top 100 firms rose from 110,632 in 2016 to 119,087 in 2017, with total remuneration also increasing from £3.1 billion to £3.3 billion.’

https://sbnn.co.uk/2018/02/13/political-uncertainty-fails-dent-profits-headcount-scotlands-limited-companies/

For many other such objective and accurate measures, search this blog for ‘business’ or see this:

More real evidence of economic strength: number of Scots getting permanent jobs has ‘risen sharply.’

As before, let me know if you see any sign of this story in our mainstream media.

One more of many indicators of good economic health: 76% fall in total value of bad debt decrees.

index

From Insider yesterday:

‘The number of decrees issued against Scottish businesses for unpaid debts fell to a record low in 2017, according to figures released today by Registry Trust. A total of 2,192 decrees were issued against businesses in Scotland last year, a decline of 38 per cent on 2016. The average value of these claims also fell by more than half, down 58 per cent. As a result, the total value of business judgements plunged by 76 per cent to £12m, the lowest on record.’

 

https://www.insider.co.uk/news/bad-debt-decrees-against-scottish-12013598

This is, as headlined, only one of many recent indicators that the Scottish economy is much better health than the unreliable estimates of the GDP and GERS figures so loved by many media commentators desperate to do their own country down. It’s also quite a dramatic, newsworthy fall. You’ll get a longer list of these positive measures and a reminder of why GDP and GERS are meaningless propaganda, at:

More real evidence of economic strength: number of Scots getting permanent jobs has ‘risen sharply.’

Let me know if you see any sign of this on BBC Scotland or STV.

Dear Jeremy, in the words of the great Aaron Neville: ‘Check out your own backyard [London] before you check out someone else [Scotland].’

skynews-jeremy-corbyn-labour_4160090

(c) sky.com

STV News allowed Jeremy Corbyn to headline a piece yesterday with:

‘We shouldn’t have hungry children in Scotland’

before going on to make the astonishing suggestion that Holyrood desperately needs a Labour Government and then listing a number of accusations of failure by the SNP to remove poverty.

https://stv.tv/news/politics/1408214-corbyn-we-shouldn-t-have-hungry-children-in-scotland/

No opportunity was given to the SNP to respond. They would probably have been too polite for my taste anyway so here’s my answer to Jeremy following on from the obvious statement in my headline. See this from the most recent empirical study of child poverty in the UK from a House of Commons report in December 2015:

‘Once housing costs are taken into account, relative poverty ranges from one in five children in Scotland (21 per cent) to nearly twice this (37 per cent) in London’. (p113)

That twenty-one percent of Scotland’s children live in poverty is a monstrous blemish on the face of a democracy aspiring to much better. That it is higher everywhere else in the UK and nearly twice as high in our globalised golden capital does not excuse it, I know that. The current Scottish government makes nothing of such a comparison. It simply accepts that it is unacceptable and is now doing what it can to remedy the situation. See also from the same report:

‘The trends in one of the key drivers of child poverty – employment – are also encouraging:

  • The proportion of children in Scotland who live in workless households has decreased rapidly in recent years and is slightly lower than the UK average – only 10.9 per cent of children in Scotland live in workless households compared to 15.8 per cent in 2012 and 11.8 per cent in the UK as a whole;
  • More than six out of 10 (62.5 per cent) children in Scotland live in households where all adults are in work, making Scotland the region with the most ‘fully working’ households in the UK – for example, only 54.6 per cent of children in England live in households where all adults are in work;
  • Scotland has the second highest parental employment rate of any region of the UK: 83.2 per cent of people with dependent children are in work. This is driven by very high employment of mothers in couples; 79.6 per cent of whom are in work compared to 71.9 per cent in England.’ (p169)

State of the Nation’: Social Mobility and Child Poverty Commission, presented to House of Commons December 2015 at:  https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/485926/State_of_the_nation_2015__social_mobility_and_child_poverty_in_Great_Britain.pdf

For more detail see:

Despite already having the lowest rate of child poverty in the UK, Scotland will become the first and only part with statutory targets to tackle it

Scotland has lower poverty rates than England: JRF Excerpt 1