Tuesday 28 August 2012
Business body suggestions fail to support economy, services... or most businesses
Reacting to the CBI Scotland budget submission public services union UNISON condemned the lobbying organisation for big business as being out of touch with reality and stuck in a Thatcherite timewarp.
There is a bit of a contradiction between the CBI call for spending on infrastructure to promote growth and their enthusiastic backing for UK government spending cuts - which have reduced capital spending in Scotland and across the UK. When asked how they will pay for it the CBI advocate cuts in public service wages and jobs.
A strategy of cutting demand won’t get the economy moving - and cutting jobs and wages will only reduce consumer confidence further.
As ever the default position of the CBI is more privatisation of public services – specifically Scottish Water. Scottish Water capital spend is £500m per year - much of it by construction companies – were Scottish water privatised the charge payer would face additional costs to provide profits and massively increased executive pay packages.
UNISON Scotland head of bargaining and campaigns Dave Watson said:
"With their year in year out insistence on cutbacks and privatisation you do wonder who exactly CBI Scotland is representing here. Their proposals won’t help public services, the wider economy or frankly many businesses. Retail and manufacturing business members desperately need consumer spending, instead CBI Scotland argues for or a narrow group of privatising companies, desperate to rip off the taxpayer.
"Needless to say while telling public servants to get poorer and pick up P45s the CBI has nothing to say about top directors pay - which in the midst of economic crisis went up by 50% last year."