Showing posts from February, 2010

Bank shares for everybody

What a brilliant idea.

So good in fact I cannot see it happening.

The sum of it is that UK tax payers own 70 billion of shares in the rescued banks.  That's tax money that would have gone on other things like health, education and social security.  Since its an investment and not just money thrown down a hole it is plausible to get the money back.

When and how you get it back is another question.  I have hated the idea that ministers would decide how and when because you cannot trust that an individual or small group would put the interest of the country ahead of their own desires.

One idea is that every tax payer be given shares in the state owned banks.  It would be like a tax refund in a sense without the government having to give out hard cash.  That way individually we would each make a decision as to when to cash in our investment and the return on it.

Whilst I personally would like this option I am not sure how it would work out for many.  Some would cash in their shares fo…

The sale of The Port of Dover

The sale of the Port of Dover is a sure thing.  Sometimes you just cannot hold back the tide.  The chief executive officer of the Port of Dover has a dream that he be in charge of a multi-million pound business and the bonuses that come with such a position, I guess.

Right now the Port of Dover is a trust, which is a not for profit business that means any profit gets put back into the business.  The idea is that it helps with stability with steady investment.

Modern business practice does not work in such a fashion.  These days the motto is "Invest big, win big".  So the port needs to be a limited company to get a massive mortgage to expand.  A trust cannot get a big mortgage because the lenders are worried that they cannot claim the company if it defaults on its debt.

Our local MP (Labour) is opposed to such a move as are the majority of the population in the area.  The prospective Conservative candidate (elections in a few months) made a bold claim that labour were going t…