The Last Stand of the Oil Barons

“You never change things by fighting the existing reality.
To change something, build a new model that makes the existing model obsolete.”  – R. Buckminster Fuller

This blog post previously appeared in The National as part of Common Weal’s In Common newsletter.
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Station

The oil and gas sector advocacy group Offshore Energies UK has claimed that if it gets more political and financial support than the sector already gets then the UK could produce half of the 15 billion barrels of oil we’ll need before 2050 with the rest being imported from increasingly unstable and unreliable countries like the USA.

However, rather than feeding even more monetary and political capital into the insatiable maw of the companies that caused the climate emergency, it would be a far better idea would be to aggressively drive down that demand by investing instead in a Green New Deal that would reduce the heat we need in our homes, remove the need for that heat to be produced by oil and would retire fuel-hungry modes of transport like internal combustion cars in favour of active travel and electrified public transport.

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Demolishing Our Future Again

“As you will no doubt be aware, the plans for development of the outlying regions of the Galaxy require the building of a hyperspatial express route through your star system, and regrettably your planet is one of those scheduled for demolition. The process will take slightly less than two of your Earth minutes. Thank you.” – Douglas Adams (The Hitchhiker’s Guide to the Galaxy )

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The demolition of the Wyndford towers in Glasgow marks a sad end for the residents and campaigners who fought for years to prevent their loss. The fall of those towers represents a lot about failings in Scotland – and particularly in Glasgow – around approaches to construction, approaches to place-making and our approach to what we think residential housing is for.

The destruction of the towers was done almost entirely on short term financial grounds and because the owners of the towers were able to pass the costs of the demolition onto others rather than paying it themselves.

There were two chief arguments used. The first was a design argument that said that the buildings couldn’t be adequately retrofitted but this case was expertly dismantled by architect (and Common Weal Director) Malcolm Fraser. The second was a financial one that said that it was cheaper to demolish and rebuild than to retrofit.

This, again, was refuted on the grounds that the demolition plan didn’t take into account of the environmental impact of the resources used to rebuild.

Many of our building materials are carbon intensive – particularly concrete and steel (alternatives to both are coming online but aren’t quite there yet) – thus whenever we have a building in place, we have to consider the “embodied carbon” involved. Once a block of concrete is cast and all of the carbon it emits during its manufacture, transport and curing has been emitted then it doesn’t emit any more. However, grinding it into dust, throwing it into landfill and replacing it with a new block of concrete will result in more carbon emissions. Wood is kind of the opposite but still worth mentioning. Wood absorbs carbon when it grows but emits it when it rots or is burned as waste. Either way, when a building material is replaced with a new one, the “embodied carbon” price has to be paid. Obviously, therefore, to avoid more emissions than necessary, building materials should be used for as long as possible, should be RE-used when possible and replaced as infrequently as possible.

The problem is that we don’t have an effective carbon or externality tax in the UK that would price in such an effect. If it’s cheaper to tear down and building and let the planet pay the cost in emissions, that’s what Capitalism doesn’t just suggest should happen but actively demands must happen.

There is another aspect to the financial case though that has nothing to do with the carbon aspect and that is VAT. Right now in the UK if you want to buy materials for a new building, you’ll pay a reduced VAT rate of 5% but if you want to buy the same materials to retrofit that building you’ll pay 20% VAT. So there is a strong incentive for buildings to be torn down and replaced if that means qualifying for what amounts to a very large tax cut.

There are solutions to this. The obvious one would be to change VAT. In an era of climate emergency and in the absence of a full externality tax, the obvious solution would be a reversal of that situation to actively encourage retrofit over rebuild but most campaigners (like Fraser) would be content with at least an equal playing field.

Unfortunately, the UK Government isn’t moving very quickly in this field (though the previous Conservative government did temporarily cut VAT on some energy efficiency products) and while the Scottish Government is just as corralled by the volume developers who represent the companies who build many of the overpriced, cold and damp blocks of appreciating capital assets that some of us call “homes” but they do have the advantage of not having to worry much about VAT given that it’s a reserved tax. There are devolved options out there though.

Back in 2022, I was working with Malcolm on an idea to write up a proposal for a devolved tax that could try to level the VAT distinction between repair and rebuild. The Scottish Government couldn’t (or couldn’t cheaply) offer a tax rebate to subsidise the VAT on retrofits and couldn’t adjust the reserved tax directly and, as with the problems they have with bringing in a national land tax, they’d find it difficult to bring in a national construction tax. But the Scottish Government DOES have the power to bring in a local levy controlled by Local Authorities. Our idea then was that Scotland could bring in a Demolition Tax to intentionally raise the price of incidents like Wyndford tower to the point that repair and retrofit would be cheaper than the alternative.

But then, we were beaten to the punch by the Chartered Institute of Building who published essentially an identical proposal and did it likely better than I would have so I’ve been more than happy to endorse their work. I’m also pleased to note that the Scottish Greens have done likewise though I think they are currently the only party in Parliament to have done so. I’d like to know the reasoning behind why the other parties haven’t, if they’d like to tell me.

The devil in such a tax is in the detail though. If it’s set too low then it won’t discourage demolitions. If it’s set based on tax arguments like the infamous “Laffer Curve” so beloved by politicians who want to use it as a misguided excuse to cut taxes then it it’ll end up being “optimised” to maximise tax revenue. A properly set Demolition Tax should, in theory, eliminate all but the most essential of demolitions (demolitions on safety and disaster grounds should probably be exempt) and thus shouldn’t actually raise any tax revenue at all. Of course, this also raises the prospect of an owner letting their property simply decay rather either repair OR replace it – something that can be fixed by enforcing already extant regulations around maintaining buildings in good order along with early use of Local Authority powers to compulsory purchase property from landlords who fail in their responsibilities.

There’s an important point in this story that goes beyond the material and the engineering and that’s the lack of social planning and protection of communities. The Wyndford tower has taken 600 homes and will turn them into just 400 homes. Even if every former resident was offered a guaranteed place in one of the new homes (they weren’t) at a price they could afford there wouldn’t be enough houses for all of them. This demolition represents yet another dispersal of a community in a city that has basically defined itself by dispersal of communities for several generations now. Each one, even when they’ve created objectively better living conditions than what was there before (the New Towns project was a decidedly mixed bag in that regard – a subject for another time), that loss of community, of dislocation from friends and family, was often profound and itself generational in its impact. This is why one of our Big Ideas isn’t “Housing” but “Place”, because while four walls and a roof are a necessary component of living well in the modern world, it’s not a sufficient one and where it is and what it is connected to is important. Decidedly unmodern gendered language aside, John Donne was correct to say:

“No man is an Iland, intire of it selfe; every man is a peece of the Continent, a part of the maine; if a Clod bee washed away by the Sea, Europe is the lesse…”

— John Donne, Devotions upon Emergent Occasions, 1624

But if the continent of community is diminished when but a single part is torn away, what happens when every part is blown down and scattered to the winds?

Every decision that led to those towers coming down last week was made either uncaring of the community who called them home or despite those cares. Where the people were considered, it was done on an individualistic basis, as if each island would be fine if it was picked up and placed anywhere else.

I fear that lesson will be missed again. I see little evidence that the replacement buildings will endure for centuries longer than the less than four score and ten that their predecessor will. They’re certainly not being built with the kind of resource-preserving Circular Economy principles that we MUST be using in our constructions during a climate emergency. Otherwise, likely within the lifetime of some of those new residents, I fear that someone will be writing another eulogy similar to this one.

Image Credit: Ian Dick

Disabling People

“Just knowing your rights (or your worth or value) will never be enough if you are powerless to force someone else to respect them.” – Alice Wong, Disability Visibility

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Chair

The UK Labour Government is doing to disabled people what the Conservatives before them didn’t think they could get away with.

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Covid – Five Years On

“In a futile attempt to erase our past, we deprive the community of our healing gift. If we conceal our wounds out of fear and shame, our inner darkness can neither be illuminated nor become a light for others.” – Brennan Manning

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Sand Timer

My memories of this time five years ago remain stark. I remember the conversations with folk in the office about getting increasingly worried that the government wasn’t taking things as seriously as they should. Watching the number of Covid cases in Scotland rise (though we would find out later that it had arrived in Scotland some weeks earlier than we were told then but the Government chose to cover that information up). And I remember on the morning of Thursday 12th March deciding that I, personally, didn’t want to risk travelling into the office that day. I never returned to that room for work – the “no non-essential contact” order went out on Monday 16th and by then I was already set up to work from home (I recognise the privilege that my partner and I both had in that both of our jobs could be worked from home AND we both had homes that could be worked from, even if trying to avoid simultaneous Zoom calls from the same living room was a challenge). I was next back in our by then closed office almost a year later to recover the corpses of some plants and to pack up the remaining office supplies I had left there.

My partner and I played things as safe as we thought we could. I remember one last shopping trip around the 20th of March deliberately buying non-perishables because I could feel the lockdown coming. That was a harrowing trip. Crowds of panicking shoppers coughing over each other and doing almost the opposite of following any kind of then non-binding government advice.

I’m pretty sure it was that trip that exposed me to Covid for the first time as I didn’t leave the house between then and falling ill. I started feeling the symptoms on the 25th of March, just two days after the first full lockdown. Of course while my symptoms matched those of that first wave almost perfectly (the only one I didn’t get was the fever) I’ll never know if I actually had Covid. We weren’t testing people unless they were sick enough to go to hospital. Testing others, we would be told a week later, was a “distraction”.

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Democracy By All Of Us

“Politics should be the part-time profession of every citizen who would protect the rights and privileges of free people and who would preserve what is good and fruitful in our national heritage.” –  Lucille Ball

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Chamber

With a single act, the Scottish Parliament could radically overhaul our devolved democracy and put people at the heart of holding our legislators to account.

I’m grateful for the coverage The National gave to the the Independence Forum Scotland National Convention last weekend. It was wonderful to see the building activism in the room and delegates certainly kept me on my toes during the Energy World Cafe. The desire to see Scotland bring more of its energy resources into public hands is strong and I was glad to lay out how it could be done despite the limited powers of devolution.

Another question came out of the day about navigating similar limits in another area. One of Common Weal’s calls for the strengthening of our democracy is the creation of a second chamber in the Scottish Parliament that could take some of the weight off of the scrutiny committees, could make sure our laws are fit for purpose and – perhaps most crucially – could oversee the Parliamentarians themselves and hold them to account if and when they fall short of the standards expected of them. In this way it would act very much like the House of Lords down south or the elected or appointed upper chambers in many other countries (Scotland is one of the very few national-scale polities that don’t have an upper chamber – even most of the US states have one) but we want to improve on the highly corruptible model of appointing Lords for life based on their loyalty or political donations (still waiting on Labour delivering on the manifesto promise they made over a century ago to fix that one down south) or even the counter productive model of electing party-loyal people to that chamber (and thus replicating the US model where there is zero accountability when one party controls both houses and zero progress when they don’t). Instead, we want a Citizens’ Assembly where all registered voters in Scotland are entered into a lottery similar to jury duty and are called to serve in the Parliament. Appointments would be by random selection initially but the long list would be adjusted to ensure that the actual Assembly is balanced demographically across age, income, geographic representation and other factors (this model was used to great success in the 2021 Scottish Climate Assembly). Appointments would be generously paid (on par with MSP salaries) and would last a fixed time – we suggest a one year appointment with a third or a half of the chamber rotating out periodically – and there would be the same protections on returning to your job as there are for jury duty or paternal leave. The comparison to juries is a strong one. If we trust our peers to determine if it has been proven or not proven that someone has broken the law, then we are more than capable of determining whether or not the laws themselves are broken.

Sounds great, but the question we were asked at the Convention was whether or not Scotland has the power to set up such a Chamber.

If we were independence, it would be a relatively trivial matter to write the structure of the Chamber into our constitution but until then, the constitutional document we have to follow is the Scotland Act. Yes, the UK does have a constitution – it’s just not written down in one place and unlike the constitution of most nations, Westminster has sovereignty over it rather than being subordinate to it and so can change it whenever it likes.

As the Scotland Act doesn’t mention an Upper Chamber in its framework and as Westminster is extremely unlikely to exercise its power to write one into the Act, how could we set one up pre-independence?

Essentially we act as if we can.

The Scottish Parliament can set up advisory bodies or Commissioners to oversee the work of Parliament and even though we couldn’t mandate that they must follow the advice of those bodies (this was ultimately the source of the failure of the Climate Assembly – the Government decided they didn’t like the advice they were given so largely ignored it), Parliament and Government could collectively agree to follow those instructions – there’s nothing in the Scotland Act that actively prevents them from doing this just as nothing prevents parties whipping their members into voting along certain lines despite that not being an “official” part of our democracy.

Such an “unofficial” upper chamber wouldn’t be nearly as powerful as a constitutionally mandated one but that’s not to say that it would be powerless. Yes, something created by an Act of Parliament alone could be scrapped by one (a constitutional amendment would require a referendum). Yes, the Government could simply stop listening to its advice. This would place it on par with the other Commissioner bodies that exist around the Scottish Parliament. Yes, Westminster could overrule the Scottish Parliament and write a specific prohibition into the Scotland Act or elsewhere. This would place it on par with any other piece of legislation the Scottish Parliament has ever passed. If either of these barriers are enough to stop us, we might as well just give up on devolution entirely.

Scenes playing out across the world right now only serve to highlight how precious and vulnerable the very concept of democracy is and how no single person or even multi-person office can be trusted with more power than it needs. Scotland’s highly centralised form of government needs to be spread out a lot more locally but we also need more scrutiny and accountability at all levels from the top down. The best people to do that are All of Us appointed not to a House of Lords, but to a House of Citizens.

TCG Logo 2019

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Platform Socialism

“With deregulation, privatisation, free trade, what we’re seeing is yet another enclosure and, if you like, private taking of the commons.” – Elaine Bernard

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App

Devolved Scotland doesn’t have many powers when it comes to unilaterally defending ourselves against a Trump trade tantrum that Starmer will supplicate and grovel to avoid – but the powers we have are surprisingly powerful.

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