CAMPAIGNING FOR BETTER RAIL SERVICES IN THE WEST

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On Sunday I had my first introduction to an organisation I’d read about many times in the seven years since I moved to Bristol and started using the public transport here. The organisation’s full name is Friends of Suburban Bristol Railways; admittedly a bit of a mouthful, so they tend to be known by their initials FOSBR. (well, OK, acronym, as it could be a word)

Celebration

The occasion was a celebration of progress made in several of FOSBR’s campaigns and the location was a pub near Bristol’s Temple Meads station. Being fond of trains and pubs, I found it an easy decision to attend; I also found that FOSBR has even produced a guide to pubs along the Temple Meads / Severn Beach line, called FOSBEER of course.

Serious content

Enough of the fun side of it; the content of the meeting, even though billed as a celebration, was deadly serious, i.e. the possible / probable negative impact of the recent McNulty Report. I was impressed with the presentations by three local rail union officials (RMT, TSSA and ASLEF respectively); incisive and fact-filled.

Correction; I’d assumed they’d be local union officials but in fact two of them had national status: Alex Gordon is national President of the RMT and Manuel Cortes is Assistant General Secretary of TSSA.

They also had a local councillor speaking; importantly, he represents an area in North Somerset that could be served by rail once more if passenger services are restored to the (currently freight-only) Portbury branch and it’s extended a couple of miles to Portishead.

Subsidy five times higher since privatisation

I’ve often read, (e.g in The Economist) or heard it said verbally (Richard Wilson’s recent impassioned plea on behalf of harassed British rail users on Channel 4) that the level of public subsidy of our railways was now higher than it was pre-privatisation, despite our fares being the highest in Europe. However it was not made clear in either of those sources if the comparison was inflation-adjusted.

At this meeting, though, the guy from TSSA filled in the blanks; the subsidy is now five times higher; £5 bn, compared to £1 bn at today’s prices back then. How can that be? McNulty apparently thinks that staffing levels and pay costs are a big part of it, which concerns the unions, naturally, including the possibility of DOO (driver-only operation). Maybe his brief didn’t allow him to conclude that the fragmentary and thus potentially chaotic way the railways were privatised had a big impact on costs and that should be addressed first.

Loophole?

I learned some other interesting stuff, all of which I shall check out in the interests of balance; for example that First Group will be able to exploit a loophole and avoid large subsidy repayments by giving up the Great Western rail franchise three years early.

The feeling of the meeting was summed up for me by FOSBR member Mike: “McNulty is Beeching Mk 2”.

I’ve now joined this worthwhile and effective organisation and will be blogging about rail in the West, so watch this space.

WANT TO KNOW MORE?

On the McNulty Report:

http://www.togetherfortransport.org/content/what-surprises-will-mcnulty-come

On Driver-Only Operation (DOO):

http://www.scot-rail.co.uk/page/Driver+Only+Operation

On FOSBR: http://fosbr.org.uk/

ACCOLADES FOR BUILDING SOCIETIES

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I’ve been following articles and blog posts by Jeff Prestridge; he’s personal finance editor of Financial Mail on Sunday, thus a pretty influential guy. And he’s said some very complimentary things lately about the building society sector, especially by contrast with major banks. If I were in charge of media relations at one of those banks, I’d have found it uncomfortable reading.

One of his articles was in “Moneywise” (May 2011); on the front cover, the piece was flagged up with the words “why selfish banks put themselves first” and my first reaction was that this was just another blast at the major banks; justified, maybe, but not news. Well, yes, but there was more: a good-news story about building societies.

Customer service excellence

Prestridge’s title praised the excellent customer service records of two particular building societies, especially by contrast with the majority of banks. They were Coventry Building Society, a mutually-owned bank, and Yorkshire Building Society, who are the country’s second-largest building society, with assets of £30 billion.  That’s small by comparison with the £1.9 trillion assets of RBS in 2008, making it then the world’s largest company (did you know that?), but large by most other measures.

(I knew RBS’s total assets were larger than the entire GDP of the UK, then £1.7 trillion, but largest company in the world? As John Lanchester says in his fascinating book (see below), that’s “freakishly large”. Yet we had to bail them out. That’s scary)

Both scored highly in several categories of Moneywise’s own Customer Service Survey Awards but they were nonetheless profitable organisations. The article’s title was “Banks that look after us look after themselves”, the point being that caring for the customer makes commercial sense.

Executive pay restraint

The article also compares top management pay packages. Ian Corning, CEO of Yorkshire BS, donated both his entire 2010 bonus and his annual increase to the Society’s charitable foundation. That compares very favourably with the well-known and astronomical levels of pay and bonuses at the top clearing banks. (at RBS, bonus of £4.5 million, apart from salary).

According to a Bank of England study by Andrew Haldane and quoted by Lanchester, the bank directors were paying themselves these monster bonuses simply as result of taking bigger punts; “there was no skill, efficiency, intelligence or judgment involved: just riskier bets”. And we all know who picked up the tab if the bets went wrong: the taxpayer.

Compared with this, the relative restraint at the building societies seems even more admirable.

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Because Moneywise is a monthly, Jeff Prestridge must have written that piece in April. Writing slightly later, i.e. for the Mail on Sunday’s 8 May edition, he says, talking pithily about the PPI scandal:

“Payment protection insurance has been a blot on the financial services landscape for far too long. It has angered those who bought it only to discover it wasn’t worth the paper its terms and conditions were written on.

It has nearly brought the Financial Ombudsman Service to its knees dealing with a deluge of complaints. And it has done untold damage to the already tarnished reputation of the banks that sold it by the shovelful.”

He then goes on, by contrast:

“BUILDING societies remain a key part of the financial landscape, providing consumers with a much-needed alternative to the banks, especially in the savings and stricken mortgage markets.

Although the credit crunch has not left the industry untouched, resulting in a bout of consolidation (that will continue for a while), there are signs that some bigger societies are emerging from the financial crisis stronger than ever.

Yorkshire and Coventry are leading the way. Both have managed to absorb smaller stressed societies into their fold over the past three years – Barnsley, Chelsea and probably Norwich & Peterborough by the end of the year in the case of Yorkshire, while Coventry has snapped up Stroud & Swindon.

Crucially, they have managed to do this without compromising either customer service or the competitiveness of their products.

The strength of these two organisations is such that both have declared an interest in acquiring Northern Rock – complete with 75 branches – from the taxpayer.

Given that the building society industry has survived the crunch with its reputation intact and without falling back on taxpayers for support (the demise of Dunfermline was its only blemish), it would be a great fillip for the sector and great news for consumers if Northern Rock (once a building society) were to be remutualised.

As David Webster, outgoing chairman of the Building Societies Association, said last week at its conference in Birmingham, building societies are primarily customer-focused businesses – which sets them apart from most banks (Metro excepted).”

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At the end of his “Moneywise” article, Prestridge concluded: “Given a choice between Yorkshire, Coventry and any of the big banks, I know where my money would go any day. To the Coventry and the Yorkshire. They care about you – rather than themselves.”

 

I think he makes the point very well that this is enlightened self-interest; by caring for the customer they help themselves build a more sustainable business. What a pity not all businesses view the world in those terms.

WANT TO KNOW MORE?

Jeff Prestridge’s 8 May article in the Mail on Sunday: http://www.fmwf.com/media-type/ask-an-expert/2011/05/jeff-prestridge-banks-must-end-the-ppi-debacle-to-win-our-trust/

John Lanchester’s book “Whoops: why everyone owes everyone and no one can pay”: http://www.amazon.co.uk/Whoops-Why-everyone-owes-one/dp/1846142857/ref=sr_1_2?ie=UTF8&qid=1305882016&sr=1-2

“Back to the Black: how to become debt-free and stay that way”, is available on the following retail sites:

Kindle Store: http://www.amazon.com/dp/B004PLMAQM

Smashwords store for other e-formats, including .pdf: http://www.smashwords.com/books/view/22886

PHILOSOPHERS I’D LIKE TO HAVE A DRINK WITH

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Here in Bristol (the UK version, though I know there are Bristols in many other countries) we have a wonderful institution called the Bristol Festival of Ideas. It was founded, I think, by a great fellow called Andrew Kelly. (may his tribe increase)

The festival’s web address is www.ideasfestival.co.uk and you might have spotted that there is nothing about Bristol in that URL, so it is conveniently shorter than it might otherwise have been. When I first noticed that, I assumed that either we had the first such festival (being of a pioneering spirit, as this city usually is) or that the aforementioned Mr Kelly had been quicker off the mark than other organisers when it came to allocating domain names. So I Googled (as you do) the phrase “ideas festival”. I found that there is virtually no comparable festival anywhere else in the UK, except Cambridge. We’d be happy, I think, to be considered on a par with that city when it comes to ideas.

To be fair, I did that web search a couple of years ago; I can’t be bothered to do it again, in case we have by now lots of imitators.

Our festival has hundreds of informative and (generally) entertaining talks annually, by a fantastic variety of speakers, including but not restricted to scientists, historians, novelists, politicians … and philosophers. Wait a minute, I hear you cry. Entertaining talk by a philosopher? That’s surely an oxymoron?

Well, I have pleasure in informing you, dear reader, that it’s not an oxymoron when the speaker is Prof A C Grayling (Anthony to his chums), whom I had the pleasure of hearing last Friday evening, not for the first time, courtesy of the Festival of Ideas. Grayling was talking largely about the history behind the “making” (his word) of his new secular bible entitled “The Good Book”. I used the word “history” advisedly, by the way, because he reckoned the process of gestation lasted about 30 years.

Space does not permit me even to summarise the content of his talk, so I’ll restrict myself to one of his throwaway lines. He mentioned that he sometimes tells his students about the conversation overheard between two women on a Glasgow bus: “My dear, you must be philosophical about it; don’t give it another thought.”

(… or was it a Bristol bus? Discuss.)

As for the title of this post: I do very occasionally like to read some philosophy (or at least philosophy-lite) because I feel I ought to, but I couldn’t ever have imagined having a drink with a philosopher. However, having heard Prof Grayling and the self-deprecating way he talks about his profession and his work, I’d now go further. He’s high on my list of fantasy dinner guests.

DREAM SCHOOL: A RETHINK

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I posted recently a piece entitled “Dream School and Real School”, about a radio interview I’d heard with one of Jamie Oliver’s “Dream School” pupils. I tweeted too: how cutting-edge am I?

Based on what seemed to be encouraging evidence of a turnaround in the attitudes and self-belief of this particular “problem pupil”, I thought that good old Jamie had found yet another successful formula; that’s why I wrote: “Dream School rules”.

I did however admit in my blog that I hadn’t yet seen any of the programmes. I have now corrected the omission, watching most of the last episode. That was enough to make me feel that my enthusiasm might have been misplaced.

A Coren summing-up

 

Victoria Coren, writing in The Observer last Sunday (17 April), summed the series up superbly and I could not improve on what she wrote. Admittedly, anyone with the surname Coren starts with a credit balance in my book, as I was and remain a massive fan of her dad’s writing. I’m glad to see that Alan Coren’s brilliant torch has been passed on safely.

Coren jr. ended her piece thusly: “The vaguely happy ending wasn’t enough to undo the message of the previous six weeks. Half the kids were still interrupting, swearing and self-justifying. The cleverest girl, who had won a science trip to Arizona, a further education scholarship and a tour of Cambridge University with an encouraging David Starkey, is now, we learned, ‘auditioning for TV dramas’. What sort of conclusion are we supposed to draw from that?

 

“… let’s strive to remember that it didn’t actually prove anything and was just a piece of weird entertainment.”

Alf Garnett stares back

Ms Coren clearly watched all six episodes but then she was paid to do so. I feel for her. Despite that fact that she was writing here in a newspaper that I’m sure would describe itself as left of centre, she said: “after each episode, I looked into the mirror and Alf Garnett stared back”.

(NB: If you are not a Brit, or not old enough to remember him, Alf Garnett was the fictional epitome of reactionary attitudes)

Want to know more?

To read Victoria Coren’s excellent article “Jamie’s dream was a nightmare”, go to: http://www.guardian.co.uk/commentisfree/2011/apr/17/victoria-coren-jamie-oliver-catherine-zeta-jones?INTCMP=SRCH

(That’s not just a suggestion: it’s an order!)

DREAM SCHOOL AND REAL SCHOOL

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Jamie Oliver’s latest initiative, “Dream School”, sounds interesting, though I admit I haven’t seen any of the programmes yet. His personality, energy and high profile have ensured the involvement of all those “experts”: people with not only exceptional levels of knowledge but also the time to give the 1:1 attention that many “troubled” children inevitably lack at school.

Teenage nightmare rehabilitated?

A couple of days ago, I tweeted about an interview with former “problem pupil” Angelique Knight on Radio 4’s You and Yours. “Dream School rules”, was my conclusion. The findings were unsurprising to me but encouraging. Unless she was no more than an accomplished actor, Angelique had changed in a short time from a teenage nightmare to a motivated young person who now wants to go to university.

“So what?” you might say. Is this just a neat way to get TV ratings? A country mile from what can be achieved in a practical sense? Resource constraints will never allow this kind of thing, or anything like it? As the saying goes, “You might think that; I couldn’t possibly comment” although I do admit to being pretty impressed when I heard that interview with Angelique Knight.

Real-world school on show

I was even more impressed recently when I saw one small snapshot of what a difference good leadership can make in schools. I was staying overnight at a hall of residence at the London School of Economics (LSE, to us Brits) and when I went down to breakfast the dining hall was half-full of schoolchildren on a study trip; it was university vacation time, so they, and I, were taking advantage of the good-value accommodation such halls offer.

These kids were of primary school age; animated, not Ritalin-sedated, but so well-behaved that I admit to thinking (please forgive my former prejudices) that they must be from a fee-paying school. It’s a well-known fact that discipline is an issue / challenge (we don’t say problem anymore, do we?) in many British state-sector schools, even at primary level.

But not all schools. Suddenly I heard an adult voice raised, in a quietly authoritative tone: “Sit down! How dare you embarrass the school by your behaviour!” Silence reigned again. We random adults looked at each other and smiled; this took many of us back to our own schooldays.

Primary school rules

I went over to a table occupied by half a dozen teachers and congratulated them on the kids’ behaviour. One said: “well, these are pretty tired kids.” That’s when I found they were from a state-sector primary: Southill Primary School in Weymouth, Dorset, and I talked briefly to the Deputy Head, the man who had laid (or is it lain?) down the law.

After the kids had left (in an orderly fashion) I noticed the same guy going round and thanking all the dining-hall and kitchen staff. That impressed me too, as it seemed to be consistent: show respect to kids and to adults alike and with luck you get it back.

As I said before, it was only a snapshot; but it showed what can be done, even without Channel 4’s budget and the presence of TV cameras. I don’t know anything about the academic results of Southill Primary School but I’ll bet they are pretty good.

Ideal vs. real

In conclusion: hats off to Southill. It’s inspiring to find out what could be done in an ideal world, through projects like Dream School. It’s even better to see people who seem to be doing it in the real world.

Want to know more?

Southill Primary School: http://www.southill.dorset.sch.uk/index.html

Jamie Oliver’s “Dream School”: http://www.channel4.com/programmes/jamies-dream-school

TWO DAUGHTERS A RECIPE FOR HAPPINESS

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I’ve just read in “The Week” (9 April) that it’s been claimed that having two daughters is the key to a happy life. According to research, ” … two daughters get on well with each other and with their parents …”

All I can add is that I hope they didn’t spend too much money on this research because I could have given them the information free of charge, based admittedly on a very small sample.

I am a very happy man. I have two daughters. QED.

My two daughters are quite different in temperament and talents and have followed qute different paths – one a junior doctor, one an actor and singer – but they not only get on well; each is the other’s biggest fan (biggest fan after me, that is).  I rest my case.

Beware of the croc

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I recently spent a fun afternoon wearing my actor’s hat, filming a commercial here in Bristol. I was playing an “older gent” sitting in a retirement home in Fishponds (a very nice one, by the way; I’m putting my name down) and extolling to my “son” the virtues of a new auction website, through which I had just bought the large flat-screen TV on the wall behind me.

Suddenly I am attacked by a giant crocodile. That was to be expected, of course, as the auction site is called crocbids. I’m knocked backwards out of my chair and I end up underneath the crocodile, arms and legs waving feebly.

Of course I wasn’t really knocked out of my chair, because for the first time in my life I had a body-double. They could in fact have put a disclaimer on the advert: “no elderly gents, or actors playing elderly gents, were harmed during the making of this advert.”

The finished product will be shown on Sky channels soon but I’m not sure when. If you’d like to see the commercial, though, it’s called “Crocbids Vs Retirement” and it’s on YouTube, at http://www.youtube.com/watch?v=dYsNW9QRiSY

For the record, and for my thanks, I was cast by Kate Marshall of Room3 Agency and the production company was Lightworx.

“BACK TO THE BLACK” AT #29 IN KINDLE STORE

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A week ago I announced the Kindle launch of my book “Back to the Black: how to become debt-free and stay that way”, at a promotional price of £0.70 including VAT.

 

(That promo price, by the way, is also being applied to the other e-formats already available in the Smashwords Store.)

 

Today, I was pleased to see that, within the “Personal Finance” category of the Kindle Store, my book is now ranked at #29 out of 3,902 titles. The ranking is “sorted by best-selling”, according to Amazon.

 

Many thanks, therefore, to those of you who have bought a copy and helped put it at #29!

 

 

WANT TO KNOW MORE?

“Back to the Black: how to become debt-free and stay that way”, is available on the following retail sites:

Kindle Store: http://www.amazon.com/dp/B004PLMAQM

Smashwords store for other e-formats, including .pdf: http://www.smashwords.com/books/view/22886

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You can follow me on Twitter: @michaelmac43, or Facebook: Michael James MacMahon.

INTRODUCTORY OFFER FOR KINDLE VERSION OF “BACK TO THE BLACK”

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As I write, the experts are dissecting on TV the impact of the Budget just unveiled by UK Chancellor George Osborne. I don’t claim sufficient expertise to add to the acres of coverage it will already be getting. What I do know, though, is that the uncertainties in the economy have already led more and more people into debt.

As I have just uploaded my dealing-with-debt book to the kindle store, and as I feel sure that thousands of people could benefit from it, I want to ensure it gets into the hands of as many of them as possible. I don’t want the price of the book to be a barrier.

For an introductory period, therefore, the kindle version of “Back to the Black: how to become debt-free and stay that way” is available at a launch price of £0.70 (or $0.99 plus VAT). Go to http://www.amazon.com/dp/B004PLMAQM

For the sake of consistency, this promotional price also applies with immediate effect to the multi-format versions, including .pdf, that were already available in the Smashwords store (http://www.smashwords.com/books/view/22886). The price adjustments in both stores are already active.

WANT TO KNOW MORE?

Reading eBooks on other devices

You don’t need a kindle to read kindle-format books! If that doesn’t make sense, what I mean is that if you read eBooks but don’t have a kindle, there is a neat piece of (free!) software called “kindle for PC”, enabling one to benefit from the improved readability of the kindle technology (and it really is) when reading on a PC or any other device. There is also a Mac version.

For a download link, just type “kindle reading apps” into Google.

Book links

To sample or purchase “Back to the Black: how to become debt-free and stay that way”, go to on of the following retail sites:

kindle: http://www.amazon.com/dp/B004PLMAQM

Other e-formats, including .pdf: http://www.smashwords.com/books/view/22886

Note: unlike physical books, eBooks carry VAT (I don’t understand the reason for the difference). The price in dollars is thus $1.14 to include VAT, i.e. British sales tax, even if the book is bought via www.amazon.com . In sterling the £0.70 price includes VAT.

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You can follow me on Twitter: @michaelmac43, or Facebook: Michael James MacMahon.

CAN YOU BORROW MONEY THROUGH FACEBOOK?

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I recently attended an excellent conference in London, on Facebook marketing. Somebody, I can’t remember who, made the claim that “Facebook will at some point become the world’s biggest bank”. I didn’t know whether to believe that. However, I did hear many presentations at that event from entrepreneurs apparently earning serious money through Facebook and other online resources.

What I didn’t hear that day, but I know now, was that hundreds of individuals now lend money to each other through Facebook. “Cutting out the middleman”, we used to say; and Facebook is facilitating it. I came across this interesting fact while trawling through my “newspaper cuttings awaiting reading” pile and found an article by Maryrose Fison in The Independent. It was a couple of months ago but no matter.

Debt rescheduling / consolidation / relocation?

People who are concerned about their debts often ask advisers if they should look for ways to move the debt elsewhere, for example through a debt consolidation loan. The pros and cons of that route have been discussed many times so I won’t go into it here, except to say that the general advice is always to avoid this kind of loan if it has to be secured against your home.

A zero percent balance transfer is another way of getting “free” credit. Even allowing for the fact that there’s always a fee of around 3%, it’s cheap money, provided your credit record is clean enough to get it.

Borrowing money from individuals, however, is something that was new to me; except, of course, for friends and family, who are often a source of funds from which debtors make offers to their creditors for “full and final settlement”. However, this new trend is borrowing from individuals who are total strangers.

Here’s an extract from what Ms Fison said:

“As hundreds of thousands of Britons struggle to get a foot on the property ladder, with banks continuing to crack down on new lending, social networking applications have become a lifeline. Who would willingly choose to pay through the roof for an unattractive loan package when there are millions of social network users gagging to lend you their money for less?

“The average rate of interest on a loan at the Lending Club over the past 36 months has been 9.22 per cent. On Zopa, the typical APR on a loan of £5,000 over three years is 8.3 per cent, and on Funding Circle a £15,000, three-year loan has an APR of 9 per cent -well below the 12 per cent a typical bank would charge.”

That sounds attractive, although there are lending offers on the market nearer 9% than 12%; some of them were listed on the same page of the paper under “best buys”. The issue, again, would be whether one’s credit record would be good enough to qualify. A private lender would also need reassurance but might be more flexible than a bank, as they are getting a relatively high return (much better than the high street, anyway) on their money.

Facebook apps

You’ll note that Ms Fison (excuse my formal mode of address: I’m old-fashioned and I’ve never spoken to her, though I shall be following her on Twitter from now on) mentioned The Lending Club; she says it was one of the first applications to be added to Facebook in 2007. She also mentions Zopa:

“UK-based social lending service Zopa is another provider, and the number of communal lending and borrowing sites with applications on social networks is growing at a staggering rate.”

Ms Fison concludes:

“Social networking applications may still be in their infancy, but given the popularity of personal finance and online peer lending, their influence on our day-to-day activities looks set to take off this year.”

Well, there is nothing to be lost and lots to be gained by investigating this further. I’ll certainly be doing some research into peer lending sites: watch this space!

WANT TO KNOW MORE?

For a copy of the full article in The Independent by Maryrose Fison: http://www.independent.co.uk/money/spend-save/maryrose-fison-personal-finance-just-got-a-whole-lot-friendlier-2173935.html

For a free sample of my book, “Back to the Black: how to become debt-free and stay that way”, go to:

kindle: http://www.amazon.com/dp/B004PLMAQM

Other e-formats, including .pdf: http://www.smashwords.com/books/view/22886

You can follow me on Twitter: @michaelmac43, or Facebook: Michael James MacMahon.