Borrowing has a cost

Borrowing has a cost

Borrowing has a cost

First published in Letters by

IF Sandy Fraser (Letters, January 30) had paid a little more attention in class, he might have got a better grasp of the financial situation in York.

Despite his attacks on my colleagues, the truth is they have presented alternatives to each of Labour’s politically driven budgets since 2011. They have shown the cuts in York are not enforced by the Government, but are about ideological choices taken by the Labour council.

Sandy claims spending on pet projects such as the Arts Barge and King’s Square comes at no cost to front-line services and the revenue account, yet they are funded through Labour leader James Alexander’s £20 million fund. This is borrowed money and borrowing has a cost – a message which Gordon Brown failed to grasp and for which we are all now paying.

In October, Labour’s cabinet member for finance confirmed that in revenue terms the cost of this borrowing was “broadly £0.5m of interest, and £0.5m of debt repayment per annum”. This means that, without the borrowing to fund these city-centre vanity projects, the council would immediately have an extra £1m a year in the revenue account to spend on frontline services, such as fixing potholes.

Coun Ian Cuthbertson, Liberal Democrat, Haxby & Wigginton ward, Earswick Chase, York.

 

• COUN Sandy Fraser suggests that the opposition are nothing more than a pantomime (Letters, January 31) and blames all cuts on the coalition Government.

Here was another example of Labour councillors passing nasty remarks about the opposition when their own leader is critical of others who do it to him.

I am sure Coun Fraser is nothing like a pantomime character, but perhaps he comes straight out of the pages of the Mr Men books for children. Mr Forgetful would seem appropriate, as it was indeed the last Labour Government who left the cupboard bare and the coalition who have had to correct the mistakes.

Perhaps the council is a bit like Happyland, the fictional home of the Mr Men, and I am sure readers could link councillors to the characters without a lot of effort.

Take your pick from the following Mr Men, Daydream, Foolish, Greedy, Impossible, Lazy, Nonsense, Ridiculous, Rude, Silly, Slow and even Mr Wrong.

Philip E Sunley, Paddock Way, York.

 

• COUN Sandy Fraser and I agree on few things, but it would be nice if he could accurately reflect my views.

I do wonder if he first wrote his letter saying everything is the Government’s fault three years ago and then merely photocopied it before making a note in his diary to send a copy to The Press every six months.

The Government is cutting the money to the council, but this is necessary due to the chronic overspending of the Government he supported and, although Coun Fraser ignores the fact, the Labour Party said if elected in 2010 it would have made virtually the same cuts.

Unlike Coun Fraser, Conservatives realise that governments and councils have no money of their own. They are responsible for redistributing and providing services from residents’ money.

Nationally, Labour wants endless borrowing and we disagree with our children paying our debts. For the council, borrowing is more difficult which is why choices are needed and that is where Labour’s choices are so wrong.

Coun Chris Steward, Rural West York, Leader, York Conservative Group, City of York Council.

Comments (8)

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12:18pm Thu 6 Feb 14

ColdAsChristmas says...

I remember the Lib Dems Cultural Quarter, Chris Hogg I think? But I take the point that debt has to be paid for. Anyone with a credit card knows to pay off the debt before the due date each month or it will cost you!
It seems that York has been saddled with a pile of debt for what appears to be a load of rubbish.
Servicing this debt, like central Govt needs to service the National debt of £1.2 Trillion and growing means that we are paying interest to creditors, rather than providing the services we all pay tax for.
The first job of the new Council has to not only clear up the Alexander and Co mess but also to put measures in place so this sort of irresponsibility can't happen asgain! Who can do that?
I remember the Lib Dems Cultural Quarter, Chris Hogg I think? But I take the point that debt has to be paid for. Anyone with a credit card knows to pay off the debt before the due date each month or it will cost you! It seems that York has been saddled with a pile of debt for what appears to be a load of rubbish. Servicing this debt, like central Govt needs to service the National debt of £1.2 Trillion and growing means that we are paying interest to creditors, rather than providing the services we all pay tax for. The first job of the new Council has to not only clear up the Alexander and Co mess but also to put measures in place so this sort of irresponsibility can't happen asgain! Who can do that? ColdAsChristmas
  • Score: -39

1:29pm Thu 6 Feb 14

Rocking Horse says...

Fraser is a old fashioned political dinosaur stuck with a Labour borrow and spend mentality.

Alexander, England and the rest of the marxist regime ruining York, are sadly stuck in the same rut, intent on selling us out by merging us with their Labour chums in the Combined West Yorkshire Authority. Devolution for yorkshire = dilution for York, and we become slaves to the conmbined Labour majority of Leeds, Wakefield, Kirklees, Calderdale and Bradford.

2015 can't come quickly enough to rid us of those who are causing destruction to York, and it's reputation.

GET LABOUR OUT !
Fraser is a old fashioned political dinosaur stuck with a Labour borrow and spend mentality. Alexander, England and the rest of the marxist regime ruining York, are sadly stuck in the same rut, intent on selling us out by merging us with their Labour chums in the Combined West Yorkshire Authority. Devolution for yorkshire = dilution for York, and we become slaves to the conmbined Labour majority of Leeds, Wakefield, Kirklees, Calderdale and Bradford. 2015 can't come quickly enough to rid us of those who are causing destruction to York, and it's reputation. GET LABOUR OUT ! Rocking Horse
  • Score: -34

3:50pm Thu 6 Feb 14

Jonthan says...

What is wrong with borrowing money Colda*se ? Have you never had a mortgage?

If people can't borrow to finance their housing needs, Matthew will be selling the Big Issue outside Poundsaver. He has nothing to say when the Tory Government does it, but he tries to get milage out of York City Council do the same.
How will Capitalism work if the banks can't find borrowers? The whole system is predicated on being able to loan money at interest. If the major institutions do as you suggest, where will the profits (generated by interest) come from? How will the bankers be able to fund their annual £2million bonuses? The City of London and its institutions will collapse overnight leading to a world financial catastrophe, probably resulting in a socialist revolution

Fine champions of capitalism you two turned out to be. Closet revolutionaries all along. Next you'll be taking your holidays in Pyongyang along with Dave Merrett and Tracy Simpson Lang.
What is wrong with borrowing money Colda*se ? Have you never had a mortgage? If people can't borrow to finance their housing needs, Matthew will be selling the Big Issue outside Poundsaver. He has nothing to say when the Tory Government does it, but he tries to get milage out of York City Council do the same. How will Capitalism work if the banks can't find borrowers? The whole system is predicated on being able to loan money at interest. If the major institutions do as you suggest, where will the profits (generated by interest) come from? How will the bankers be able to fund their annual £2million bonuses? The City of London and its institutions will collapse overnight leading to a world financial catastrophe, probably resulting in a socialist revolution Fine champions of capitalism you two turned out to be. Closet revolutionaries all along. Next you'll be taking your holidays in Pyongyang along with Dave Merrett and Tracy Simpson Lang. Jonthan
  • Score: 45

8:11pm Thu 6 Feb 14

Silver says...

Nothing wrong with borrowing money I just wish they'd give up on PPI as you end up in what seems to me a legal form of loansharking just for governments. Both tories and labour are equally guilty of it and just ignore the problem
Nothing wrong with borrowing money I just wish they'd give up on PPI as you end up in what seems to me a legal form of loansharking just for governments. Both tories and labour are equally guilty of it and just ignore the problem Silver
  • Score: 3

9:33pm Thu 6 Feb 14

ColdAsChristmas says...

Ah, there you are Jonthan, I thought you had done a runner.
As for taking holidays in North Korea: No, I'm keeping control of my carbon footprint.
Ah, there you are Jonthan, I thought you had done a runner. As for taking holidays in North Korea: No, I'm keeping control of my carbon footprint. ColdAsChristmas
  • Score: -36

11:26am Fri 7 Feb 14

Old_Man says...

You can't expect too much from poor Sandy. Especially after he and Ruth Potter have had an afternoon on the lash round the city centre.
You can't expect too much from poor Sandy. Especially after he and Ruth Potter have had an afternoon on the lash round the city centre. Old_Man
  • Score: 2

10:41pm Fri 7 Feb 14

bolero says...

ColdAsChristmas wrote:
Ah, there you are Jonthan, I thought you had done a runner.
As for taking holidays in North Korea: No, I'm keeping control of my carbon footprint.
Yes, he's back and I notice the vote manipulation has taken off again.
[quote][p][bold]ColdAsChristmas[/bold] wrote: Ah, there you are Jonthan, I thought you had done a runner. As for taking holidays in North Korea: No, I'm keeping control of my carbon footprint.[/p][/quote]Yes, he's back and I notice the vote manipulation has taken off again. bolero
  • Score: 1

6:05pm Sun 9 Feb 14

ColdAsChristmas says...

You might have a point there, bolero......?
You might have a point there, bolero......? ColdAsChristmas
  • Score: 1

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