Private Sector Power

I really do despair at the lack of creativity at Westminster. No spark, no originality, no enthusiasm and as a consequence, no postive result.

A Quick Recap......

The Government is desperate for the Private Sector to grow. Firstly, this will create jobs and replace the ones that have been lost with the Public Sector cuts. Secondly, it needs the Private Sector to invest, expand and grow us out of this economic mess. In other words, the Private Sector is crucially important.

Latest Government Thinking......

The problem is, the Private Sector isn't growing at all. No expansion and only limited jobs being created. Why? The Government believes that the banks are not lending simply, freely and cheaply enough (didn't that get us here in the first place?) to the Private Sector to instigate the economic boom that the Government wants.

Only one thing for it then (well in W1's mind)......set up a bank themselves. The headline being grabbed with this one will centre on the £1billion that taxpayers will put into the bank, with the key remit being to lend to small and medium sized companies.

My Thinking......

1. Nice headline......you forgot to mention where the £1 billion is coming from!

2. Exactly how is this going to help to stimulate the economy in the short term when it is predicted to take at least 18 months to establish.

3. Why does money need to be created to spark economic growth? Why not give tax breaks to businesses on energy, fuel and profit that can be used to invest / grow?

4. Why not use key business leaders for their experience and entrepreneurial flair to ignite the Private Sector that they dominate with fresh ideas?

It just all feels like an accountant is being used to fix a lorry. Completely inappropriate.

This isn't rocket science is it?

No Sex Please

I really can't understand this one at all. And for once, I can't even blame the banks or politicians.

The Background......

When it comes to matters of sex, some of our European partners are renowned for their more liberal approach, romanticism, guile and prowess. Yet, interestingly, the forthcoming EU Gender Directive flies in the face of individuality and sexual expression.

The EU Gender Directive will come into force on 21 December 2012 and will force all UK Insurers to treat men and women the same when it comes to insurance premiums. This means that whether you are insuring a car, your house or your life, men and woman must pay the same.

The Problem......

Women are generally a lower risk to insure as they are less likely to claim. They drive safer, they live safer and they live longer. As a consequence, they pay less. All very fair and above board. But the new ruling will mean that this will be unlawful shortly.

What Next?

I just don't get it. An insurer will weigh up the risks when insuring something and set a premium to do so. End of. But this is effectively saying, do not consider some of the risks and increase your premiums for women.

That's like saying......

A 17 year old must be insured for a car at the same price as a 50 year old or you are 'ageist' and 'driverist'.

Or a Robin Reliant has to be insured at the same cost as a Porsche or you are a 'carist'.

Or a dog must be insured at the same price as a hamster or you are a 'petist'.

I just don't get it.

This all smacks of too many men in Brussels, with too much time, eating moules et frites over an extended lunch washed down with too much red having a right good snigger at us.

Frightening.

Now Remember......Try Not To Look Old or Vulnerable!

After an investigation by the Financial Services Authority into the mis-selling of Payment Protection Insurance (PPI) its conclusions were……well……underwhelming.

Martin Wheatley, the FSA Managing Director, announced that “offering financial incentives to bank staff to sell PPI was the reason why so many were mis-sold.” Hardly a ‘stop the press’ moment is it.

Is it just me or is this bleedin obvious?

My investigation would have gone along the following lines:

1.     Walk into your bank where you hold a current account.

2.     Deposit £100.00 into your current account.

3.     Look vulnerable, old or (ideally) both.

4.     Wait for the Double Glazing Sales man / woman (they will have a badge giving them a title saying something like ‘Banking Executive’) to interrogate you on your mortgage, insurance, credit card, savings or all of these.

5.     Walk out feeling jaded, confused and dirty.

6.     Expect a phone call within 24 hours from a ‘Banking Executive’ because you didn’t keep a straight face during the interrogation and blinked, thus indicating that you wanted to proceed with something completely inappropriate.

In all seriousness……there is a bigger message. The FSA have highlighted that if you give banking staff financial incentives, they will put their own personal greed before the client need. Pretty straight forward action required then……stop sales incentives on bank related products and we can avoid a repeat of the £9 billion compensation paid for mis-sold PPI.

Simple really isn’t it. Or is it……

The FSA has decided not to ban such practices but instead it wants banks to “review their incentive schemes and ensure controls are adequate over the next 12 – 18 months.”

So there you have it – yet more evidence of the power that banks have over Government, their own regulator and anyone looking vaguely old or vulnerable.

It’s only been 4 years since Northern Rock collapsed. No rush I guess.