Showing posts with label Budgets. Show all posts
Showing posts with label Budgets. Show all posts

Sunday, February 08, 2015

Have You Got A Moment?

I recall that when Francina Armengol was given the keys to the presidential suite at the Council of Mallorca in 2007, she was going to usher in a new way of doing things. Her door, she said, would always be open, by which she didn't mean that the general public could just wander in off the street and have a good old nosey around. Rather, Francina was all for doing things differently; she was an open and communicative president and not the one from whom she had taken over (now residing at his majesty's pleasure). Eight years later, we find Francina in pole position (if not actually first in the polls) to become Bauzá's successor, and so she has been reflecting on ... the need for a new way of doing things. These new ways come in eight-year cycles, it would appear. "Another way of doing politics is possible," she informed a gathering of PSOE-ites in Valencia. "Through dialogue rather than imposition." "Through participation and ..." At this point, lights will have gone on in the minds of the fellow PSOE-ites. Participation. Now, where have we been hearing about this?

Suddenly, everyone's talking about participation, and they have to thank (and/or fear) Pablo Iglesias for doing so. Yes, there is a new and participative way of doing things, and someone had beaten Francina to the idea by several months. Her version, whatever it might in fact be, is political catch-up blended with ample dollops of opportunism. What are Podemos good at? Participation. Right, we'll have some of that for ourselves. And, blow me, only a few days later, PSOE in Calvia were unveiling their own participative re-invention. Under the slogan - "have you got a moment" - they've come up with a mobile app through which residents can answer three questions, such as "what is it that most concerns you about Calvia?" A multiple choice gives various options for answering - corruption, safety, taxes, tourism, etc. More than this, they are planning on having "participative budgets", so that the folk of Calvia can decide where money goes for certain things.

This isn't as revolutionary as it might sound, as they already do this in little old Algaida, where the council is PSOE-controlled and which is the home town of Francina's predecessor as leader of PSOE, her good chum and former president of the Balearics, Francesc Antich. So, it's been Algaida which has been the source of inspiration for Francina; has it? Possibly, but new ways of doing things haven't simply shifted towards citizen decisions as to how 300 grand are spent; new ways have emerged because things have been turned on their head. And Francina knows full well by whom and why she has to get the participation craze as well. As Little Eva might have sung (but didn't): "Everybody's doing a brand new political dance now. Come on, baby, do The Participation".

Thursday, November 06, 2014

No One On Duty: Health service

Education and the fiasco over trilingual teaching have meant that arguments and debates concerning the regional government's management of public services have tended to neglect the equally important health service. The weight given to these arguments may well now be shifting, and they are ones which further damage the government and make the possibility of the Partido Popular forming the next government even more remote.

Last month, the regional health minister, Martí Sansaloni, asked the finance ministry of José Vicente Marí for a line of credit of 40 million euros. He needed the money as without it salaries for the rest of the year would not be paid. Sansaloni had held out the begging bowl last year as well. Then, he only wanted 20 million in order to ensure that salaries were paid. The request for credit in October has to be seen in the context of what had been an increase of over 25 million euros to the total health budget for 2014. It was up to 1,195 million. Yet, despite this increase the credit requirement doubled. Nevertheless, Marí's finance ministry agreed to the request, but only 36 million. Sansaloni has to find four million euros' worth of savings over the final weeks of the year.

Sansaloni, who inherited the health job following the departures of two previous ministers, has had his share of difficulties since becoming minister. They have included the controversial case of Alpha Pam, the Senegalese immigrant who, as he was "sin papeles", was denied treatment at Inca Hospital that, as an emergency case, he should have received. His death and the fallout from it have clouded Sansaloni's time as minister, but this was something of an exceptional case. Far less exceptional is the day-to-day running of the health service and how that service is now operating. Or not.

In July, the PSOE opposition demanded answers related to what it described as the bad administration and absolute inefficiency of the health service. It pointed to a 30% fall in operations and to a waiting-list increase of over 100% - 51 to 121 days. In September, Sansaloni was in Madrid for a meeting to consider the challenges facing the Spanish health service. At that gathering he spoke of the need to change the tendency from greater costs to lower budgets and said that in the Balearics the health service was working with over one thousand fewer workers but good results and no fall in care.

So, he presented a different picture of the health service to the one which PSOE did. Moreover, when he spoke of lower budgets, he neglected the fact that the Balearics health budget had risen by just over 2% in 2013. He wouldn't have known then that the budget for 2015 was also set to rise and more substantially so, by over 10%.

That budget for next year actually contemplates some cuts. Son Espases, Son Llàtzer, Inca and Manacor hospitals will also have reductions in spend; not huge, but reductions nonetheless. It will be interesting to see, whoever is health minister this time next year, whether credit for salaries has to be asked for once again. But the question is, why is there this need for credit? As staff numbers have been slashed to the extent they have, as thousands of drugs and other products have been removed from the health service's "catalogue", why does the health service still find itself incapable of operating to a budget, one which is in any event higher?

The remedial measures that Sansaloni has had to adopt in order to meet the terms of the finance ministry credit include not covering for staff who are sick or on holiday. This has given rise to situations such as those in Puerto Alcúdia, Sa Pobla and Puerto Pollensa, where there have been no medical staff on duty at given times at the local health centres. The El Pi party has added its voice to that of PSOE in describing this failure in staff cover as "bad management policy" with "citizens the victims". From what Sansaloni had to say in September, it would have been thought that such a failure couldn't occur because IB-Salut, the Balearics health service, was not experiencing any fall in care. But it clearly is. And moreover, it is a fall in care despite budgets having risen and despite cuts to staff and drugs which were said didn't result in poorer levels of care.

A curiosity of the current government is that, for all the austerity that was spoken of, its total budget is now higher - by 362 million euros - than in its first year of government. The health service accounts for some of this. But where's the money going? People might want to ask that question in May when they're heading for the polling stations, bearing in mind that in November they found there were no medical staff on duty at their health centres.

Saturday, November 01, 2014

The Great Mallorcan Tax Giveaway

When all else fails - and it has - the political magician has one last trick which he hopes will win the gasps and applause of the electorate audience. Off comes the top hat and out pops the rabbit which fires a pop gun with the words tax cuts scrawled on a scruffy piece of paper dangling from the final lifeline shot by a failing administration. See the Great Bauzá! Be amazed by his wizardry! Be agog at his political-death-defying feats!

The Bauzá Magic Show has been a roaring success. He has sawn ex-finance minister Aguiló in half. Made former education man Rafael Bosch disappear. Turned Palma's Mateo Isern into a frog. Conjured up a teaching system of awe-inspiring failure. Subjected his own party to the thousand cuts of swords thrust into a box that once contained Balearic regionalist identity. Symbolically turned the Catalan flag into the red and yellow of Spanish nationhood. Yes, a fabulous success. Ah but, there is always the sleight of hand and the rabbit with the tax giveaway.

Anyone out there remember austerity? It was ushered in with grim-reaper solemnity by José Ramón. Dourness, parsimony, cuts of different sorts - to personnel, services, budgets - were for the people of the Balearics to have to suffer for four years. The long faces of crisis were to endure while the vandalised public finances, looted and battered by the previous lot, were slowly mended, nailed back together and given a fresh lick of whitewash. But suddenly, the long faces have been replaced by the happy, smiling features of José Ramón, clapping wildly at every PP mayoral selection decision and beaming his most maniacal of beams.

All that austerity, and do you know what? The current, austerity-driven Balearic Government will be spending over 350 million euros more than when it started. It has managed to add over 1,000 million euros of new debt. Pretty good going, huh? The budget for 2015 - 362 million euros higher than in the first year of government - will include items of expenditure such as increasing the amounts given to political parties, like the PP, which will have twice as much to spend on advertising next year, and giving more to the IB3 broadcaster, firmly under the control of the PP and firmly made to utter only words of Mallorquín and not Catalan.

This non-austere generosity can be explained by the "great effort" of the past three years to overcome the "grave situation" that Bauzá was confronted with. Yes, he truly has been a magician. And what's more, the people of the Balearics will be better off to the tune of 250 million euros of lower taxes next year. Though don't anyone get too carried away, as there is an apparent contradiction in this - 160 million euros more to be raised through income tax and IVA. But don't let's dwell on this. Bauzá certainly isn't. The 250 million euros giveaway is what will get the electorate clapping as wildly as he does.

There are, of course, elections coming up and so there is an explanation which differs to the "great effort" one. Taxes down, budgets up, let's spend lots of money and see those PP names filling the ballot boxes. Tax cuts by government and tax cuts by town halls, just a couple of which are Pollensa and Calvia. "Electioneering", cried the socialist opposition in Calvia, which was perfectly true, though there has also been the "great work of management" by the Manu administration, said one of the PP deputy mayors. And what cuts these are in Calvia. 60% off for "large discos" for instance. Who on earth has Calvia got in mind, do you suppose? Oh well, nothing like recognising the good works that will see the phoenix rise from the ashes of some rocks in Magalluf. And nothing like the wave of the magician's wand and the magician's tax-cut incantation. "Abracadabra!" And with that, all the PP woes were blown away in a puff of smoke.

Saturday, April 27, 2013

MALLORCA TODAY - Shock as UMP rejects Pollensa budgets

Pollensa town hall's meeting on Thursday was the scene of a protest by various opposition councillors to the agreement to pay the architect responsible for the auditorium (a project now abandoned) a fee of 150,000 euros. Mayor Cifre has said that the council has no choice but to pay this, yet the opposition maintain that because the auditorium project was never officially agreed to by the town hall it shouldn't be liable to having to pay the fee. This protest was merely the scene-setter for the greater shock of the evening, which was the decision of the councillor for the UMP (Unió Mollera Pollencina), Nadal Moragues, to not support the town hall's budget. In so doing, he went against an agreement of his party and also made it impossible to confirm the budget, thus throwing the town hall administration into even greater confusion than it already was.

See more: Diario de Mallorca
Ultima Hora

Sunday, February 17, 2013

MALLORCA TODAY - Call for more social aid in Alcúdia's budget

The PSOE opposition at Alcúdia town hall has called for there to be greater provision for social aid in Alcúdia's budget for 2013 and for there to be initiatives to help with employment and business creation.

See more: Diario de Mallorca

Thursday, December 27, 2012

MALLORCA TODAY - Payment to Pollensa auditorium architect queried

The architect for the aborted project to construct the auditorium in Pollensa, Rafael Moneo, is to receive a payment of 150,000 euros, the amount having been included in the town hall's budget for 2013. The Alternativa and opposition parties are querying this payment and indeed any commitment that the town hall has to make it, pointing to what the previous mayor, Joan Cerdà, said regarding the town hall not having a debt to Moneo because the town hall hadn't actually ordered the auditorium project.

Friday, September 07, 2012

MALLORCA TODAY - Alcúdia criticism of help to families in need

The opposition PSOE and Convergència at Alcúdia town hall has attacked the Partido Popular-led administration for allocating only 22,500 euros for families in need in the town when a surplus of eleven million euros has been budgeted for.

See more: Diario de Mallorca

Wednesday, July 04, 2012

MALLORCA TODAY - Inca drops its bullfight through lack of money

Inca town hall, forced to make savage cuts to budgets for its patron saints fiestas at the end of this month, has decided to ditch the bullfight. With a budget of only 40,000 euros this year, town hall is relying on private finance to assist in staging events at the fiestas.

See more: Diario de Mallorca

Wednesday, June 20, 2012

MALLORCA TODAY - Sa Pobla cuts its budget

Sa Pobla town hall has finally approved its budget for 2012. At a touch over 10.5 million euros, it is 20% lower than that for 2010. The budget should be capable of covering outstanding payments from 2010 and 2011, and one of the more notable cuts is that to fiestas, spend on which has been halved compared with 2010. The Districte 54 party during Sant Jaume, which caused trouble last year, has been dropped once again.

See more: Diario de Mallorca

Wednesday, February 08, 2012

MALLORCA TODAY - Pollensa approves 2012 budget

Thanks to the support of the councillor from the Esquerra Republicana, Pollensa's minority town hall administration was able yesterday to approve the budget for 2012. The accounts are set to realise over 21.5 million euros, from which there is an expectation of being a surplus of some 300,000 euros. The budget was criticised by the UMP (the party of the Moll, i.e. Puerto Pollensa) for not providing investment in coastal areas of the municipality.

Monday, November 14, 2011

Who Wants To Be A Nine Times Millionaire?

Nine million is a fair amount of wonga. You can do all sorts of things with nine million, like paying the Duke of Palma’s institute four times over - allegedly. Or it could pay the mortgage for ten apartments of the sort that President Bauzá has in what is described as one of the the most expensive parts of Spain - Sa Calatrava in Palma - and not allegedly, but fact.

So yes, nine million goes a fair old way. But it still does depend upon how you might intend blowing it all. That’s why I’m giving you a little game and then test. It’s best if two of you play; something for one of those boring winter afternoons in Mallorca when there’s nothing open and the skies are ominously silent and without any sign of aircraft. One of you has to imagine that he or she is the tourism minister (to get into the right mood, think being a bit of a shorthouse, if you aren’t already one, and being generally disliked especially by members of your own party). The other has to pretend to be in charge of the tourism promotion pot at the Balearics Tourism Agency. Ok, ready?

Tourism minister: “Right now, Juan (feel free to substitute a different name, if you wish), the president, myself and the finance chappy have been putting our heads together and we’ve come up with your budget for next year. Hold your hands out.”

Juan: “Nine million! What do you expect me to do with nine million? Have you any idea how many countries we’re supposed to be promoting to?”

Tourism minister: “Look, it doesn’t matter. The Brits’ll be flocking in next year anyway. And the Krauts. The Ruskies, too. Up 80% more already this year. Think of all that bling jangling as it reaches for the folding notes. It’ll do wonders for the tourism spend statistics. Great PR for when they’re all rioting in the streets next summer when Rajoy pulls the plug on pensions.”

Juan: “But nine million. That’s barely enough to pay for Nadal’s arm let alone Nadal. Then there’s the boat. And the prime time. The prime time, minister, in God knows how many countries. Nine million. That’s the approximate equivalent of only one euro for every tourist who comes to Mallorca.”

Tourism minister: “Yea, but we’re not using Nadal, unless he does it for nothing. And what’s this one euro for every tourist business got to do with anything?”

Juan: “Well, nothing really. I just thought it sounded good. You know, like in a political way.”

Tourism minister: “Brilliant. You’re on to something. I’ll use it for my next speech. The government will be spending one euro on every tourist coming to Mallorca. It’s so ambiguous it’s genius. Is it austere or is it generous?”

Now, having undertaken your role play, you have to, using your skill and judgement, come up with how you would spend just nine million euros for a whole year to promote not just Mallorca, but also Menorca, Ibiza and Formentera, not just to the UK, but also to Germany, Scandinavia, France, the Netherlands, Belgium, Austria, Switzerland, Italy, Ireland, Poland, Russia, Ukraine, China … .

Ah, you see, it’s not so easy, is it? Put you on the spot a bit. It’s no use saying they should splash out on some grand TV ad campaign, because they’re not going to. Not on nine million they’re not.

While one of you figures out how best to spend the meagre nine million, the tourism ministers among you need to think strategy. That’s a tough one, as there haven’t been many tourism ministers who have ever done that. But it’s important. Really important. You might be able to get away with spending hardly anything next year, but nothing lasts for ever, as Mallorca well knows having slid from its one-time position of invincibility. But this is Mallorca’s big chance, perhaps its last chance.

Events have conspired to create a record summer for tourism in 2011 and will do so again in 2012. But after next year? It’s going to take some money, and rather more than nine million annually.

By the way, those of you who come up with the most creative ways of spending the nine million will be entered into a prize draw. First prize is two weeks in a Mallorcan-owned all-inclusive hotel. In winter. In the Dominican Republic.

(And by way of clarification, the budget for tourism promotion last year was 27 million, which should in fact have been 44 million.)


Any comments to andrew@thealcudiaguide.com please.

Saturday, October 01, 2011

MALLORCA TODAY - Pollensa budget finally approved

Having previously been blocked because of opposition parties voting against, the 2011 budget for Pollensa town hall has now been approved, the opposition groups abstaining and so allowing the budget of the minority Partido Popular-La Lliga alliance which will see a reduction of 6.7% (to 22.4 million euros) and a resultant cut in public spending.

Saturday, February 19, 2011

MALLORCA TODAY - Only one project in Santa Margalida

The annual budget for Santa Margalida (which includes Can Picafort and Son Serra de Marina) has been agreed by the town hall. Down by 13% on 2010, perhaps the most telling aspect is that only one building investment is envisaged. It is virtually impossible for the town hall to get any credit, and so projects in the town will be limited to the building of a new wall at the secondary school.

Tuesday, January 26, 2010

The Modern World - Reality at the town halls

Hard on the heels of the report into the growth in town hall spends on personnel over the past decade, comes evidence that, when it comes to paying suppliers, Mallorca's town halls are far less willing to splash the cash; cash they owe against invoices raised for work done. While staffing levels have risen - in some instances by some astonishing amounts - and have clearly eaten into town halls' revenues, companies over which some of this staff have supervision are being left unpaid. And in certain instances, especially construction companies, they have gone out of business or maybe are about to. Work that has been funded by central government is being paid for, but other work - ostensibly paid for by the town halls - is not.

The suppliers are caught in the vicious credit circle. Several town halls have had to seek bank money, but the banks of course are unwilling to part with it, or not all that is being sought. Pity the poor suppliers to the likes of Pollensa and Muro town halls, where considerable debts are sloshing around and where budgets are seemingly neither supported by tax and other revenues nor by lines of credit. Pollensa's budgets for this year were described by the opposition as "science fiction"; Muro's financial situation has been portrayed as being "frightening". Pollensa was denied all the bank lending it wanted, and Muro faces a similar reluctance. Good luck, frankly, to anyone putting in an invoice to a town hall. The chances of it being paid are ... who knows?

This is not a new situation. Many town halls have reputations as being lousy payers, and have had for years. Even an administration that is relatively flush, such as Alcúdia, can take ages to cough up, with all the frustration to say nothing of harmful effects for cash flows that this can cause. Chances are, as well, that unless invoices are pro forma, the supplier has had to declare those invoices and been obliged to pay tax and IVA, despite not having received a remittance. The situation has been exacerbated by the current lack of credit. Companies, though, have taken the risk, in all probability having to seek their own credit, which may not actually be available. Without doing so, and given the importance of public building projects, local economies would all have but ground to a halt. They may yet still do so, if suppliers keep going out of business.

The president of the federation of local authorities, in an interview with "The Diario", has admitted that the town halls are causing serious problems for businesses. Joan Ferrà, himself the mayor of Puigpunyent, points out that town hall revenues are down by as much as 40%. While tax revenues are part of the story, Ferrà refers also to non-payments to the town halls and of course to the banks. He talks, vaguely, about the need for greater efficiency and effectiveness and about "good practice" when it comes to setting budgets and seeking cost cuts. To this end, he mentions fiestas and sports facilities as two areas that will have reduced spending, while staff will have to make do without using mobiles.

So, I guess our hearts should bleed for Vodafone and Movistar, as they will have reduced town hall contracts. Efficiency and effectiveness - where have we heard these words before? They were at the heart of the drive towards value for money in British public administration of the early Thatcher years. The town halls needed to increase staffing levels as they were operating from too low a basis of service, but one wonders as to how much attention has been paid to working practices. Staffs have grown like topsy, making town halls major employers, thanks to the spending frenzy of the Spanish boom years. More personnel was needed, but so also was more professionalism in terms of operational management, to which one can add factors such as inefficient working hours and departmental duplication in the governmental mini-me's that are the town halls.

So, fiestas are to be more "austere". Some already are. Pollensa cut its budget in 2009, for example. Trapped in a cycle of the traditional colliding with the modern, and in the social fabric of which the fiestas are integral, the town halls barely dare to question their fiesta spends. But the town halls have been, and remain, wasteful in this regard. Back in 2008, I asked, in the context of Can Picafort's summer fiesta, just how sustainable the fiesta was. And this was before the real impact of the crisis kicked in. The amount of money going up in flames seemed grotesque, and was made even more so when Santa Margalida town hall announced that some 300,000 more euros were to be allocated to fiestas. It was madness. Here was a town hall willing to fork out on bread and circuses while the benighted village of Son Serra lacks a decent police presence and has a vandalised sports centre. There again, sports facilities are to be deprived of money, aren't they.

The town halls are the Spanish economy in microcosm. Easy money was thrown at beefing up administrations and at creating projects. Much of this was necessary, but was approved by politicians - locally and nationally - overtaken by the thrills of growth but lacking a vision of sustainability. The national government now has its programme of economic sustainability, one that is long overdue and born out of the economic crisis. If it is to work, then different levels of government, including the town halls, are going to have get used to reduced spends, as are residents of the towns. More fundamentally, they - the town halls - are going to have to appraise their practices and priorities, as I said on 11 January. They cannot continue to operate way beyond their means, because the consequence is that suppliers don't get paid. But whether some of these suppliers should have been engaged in the first place is another question, as some of the projects have been of such deeply questionable value - like Can Ramis in Alcúdia. Ah yes, value. Value for money - efficiency and effectiveness. Welcome to the modern world.


QUIZ
Today: which group came second with the modern world?

Any comments to andrew@thealcudiaguide.com please.

Saturday, July 04, 2009

Orchestral Manoeuvres In The Dark

As it's the fiesta season, more on fiestas following on from yesterday.

Financial reality is biting. The budgets for some towns' fiestas have been cut. Pollensa is apparently reducing its budget by some 25%. This in itself is quite an achievement given that the town hall has still to approve its budgets for 2009, but whatever. The music festival is unaffected, it is not seeing a reduction. Let us be thankful for this. Otherwise there might not be the wonder of, er, Tony Hadley. Alcúdia, meanwhile, will be exerting "control" to ensure that there are no excess costs. The same sort of control that led to the Can Ramis fiasco perhaps. But let's give them the benefit of the doubt.

If there may be some cuts to the likes of Virgen del Carmen and Patrona, these will not be to the cultural highlight that is the sophistication of the Pollensa Music Festival. It is a fine series of events, but whether it can be bracketed together with the fiestas is questionable. It is cultural and traditional only in the sense that tradition can be said to be less than 50 years old; it is cultural (Mallorca-wise) only in that there is a smattering of local talent; it is cultural (internationally) in that it is cultured and of a musical culture and tradition.

The fiestas are the epitome of local culture and tradition. For there to be cuts to their budgets is sensible in the current climate, but is not sensible in that the fiestas represent precisely the type of "alternative" tourism attraction that the Mallorcan tourist authorities keep banging on about. One might, however, legitimately ask whether less lavish fiestas and therefore spend would materially affect tourism in terms of numbers. I have my doubts.

But to come back to the music festival. This differs to the fiestas in one very major way. Though there is a budget for its staging, there are also revenues generated. Tony Hadley, for example, will set you back 40 of your European euros or 30 if you prefer to slum it in the one and nines. Only one event during the festival is free. The fiestas do not generate revenues, well not directly.

At Puerto Alcúdia's Sant Pere fiesta there was, for instance, the Mallorcan performer Tomeu Penya and his ensemble. The Orquestra Mediterrani was at Sant Pere; it will also be at Virgen del Carmen to serenade the fiesta-goers after the sun has gone down. These are just two examples of perfomers. Then there is all the rest, especially the fireworks. It's all free. And there's nothing wrong with that; the more that's free the better. The only problem is that someone has to pay. There's no such thing as a free lunch for the elderly fishermen of Alcúdia - for example. They (Pollensa town hall) can probably get away with not cutting the music festival budget because they're getting something into the coffers; the only something they get into the coffers for the fiestas are local taxes, some grants and maybe some sponsorship or some badgering of local businesses.

Conspicuous by its absence in the list of town halls mentioned in "The Diario" is that of Santa Margalida. Last year, some of you may recall, it was reported that the town hall was planning to increase its fiesta budget by well over a half from the 512,000 euros spent in 2008. It will be interesting to see if it has; it will also be little short of scandalous if it has. Or rather, it wouldn't be if there were a mechanism for recouping at least some of the outlay, and not through local taxes. I have no good practical suggestion as to how, but some sort of levy might not go amiss. If the fiestas are to remain and if they are to become more spectacular with ever more money going up in smoke in the form of fireworks, then those who enjoy them should be prepared to put their hands in their pockets.

The alternative view is that, if nothing else, the town halls should exist for staging grand fiestas. Perhaps that is where both the problem and the solution lie. Budgets for fiestas may be having to be cut, but one does wonder about the waste that leads to these cuts being necessary. Control, anyone?


Incidentally, the programme for Virgen del Carmen this year is now available on the WHAT'S ON BLOG - http://www.wotzupnorth.blogspot.com.


QUIZ
Yesterday's title - Marvin Gaye, "What's Going On?": http://www.youtube.com/watch?v=DtUMa0FtuWY.

(PLEASE REPLY TO andrew@thealcudiaguide.com AND NOT VIA THE COMMENTS THINGY HERE.)

Saturday, September 06, 2008

Nothing Is Real

With a degree of fanfare for the worthies of government, business and a few local people, the new "centro de interpretación" for the Son Real finca outside Can Picafort was formally opened a couple of nights ago. I trust all had an enjoyable time and partook of some fine hospitality; chances are it will be the first and only time they go. Like restaurant inaugurations, openings of public facilities attract the freeloader and the great and good, never for them to set foot in the place again.

Back in July (24 July, People Get Real), I queried the value of this new centre. Making Son Real sustainable, having a centre of some description; these are worthy and appropriate aims. But the number of visitors anticipated and the amount spent just don't add up. Well sorry, they do add up or are rather divisible, and the sums don't make a huge amount of sense as a calculation of visitor to actual cost.

The "new" Son Real will charge 5 euros top whack, with kids getting in at half price. As I commented back in July, I would guess that a great proportion of the visitors will be school children on trips, as is the case with Albufera. But even assuming that all the 20,000 anticipated visitors per annum were to actually put in an appearance (which would require something in the region of a three-fold increase on current numbers) and also assuming that they were to pay the full price, it will take 30 years to recoup the cost of the new development; it has cost 3 million euros.

How can this possibly be justified? Son Real, it is said, has "international significance", but for whom? Tourists? How many even know of its existence, or indeed how to get to it? Perhaps they're improving the information, but Son Real has hardly been something well signed or even publicised. And one presumes the charge is for the centre and museum as opposed to the actual finca. If so, you can cut that 20,000 by a proportion.

The real message being sent out by Son Real is one of egoistic sustainable tourism and development; the finca itself is managed by the centre for sustainable development. There is nothing inherently wrong in this, but what is wrong is the belief that the type of project undertaken at Son Real holds any great benefit for tourism. It doesn't. Or if it does, only at an inconsequential level. Son Real sits alongside the projected new Pollentia centre and arts and science museum in Alcúdia as an example of a qualitative exercise in minority interest. Fine buildings, fine centres add to the overall quality of life for everyone, tourist included, but there is a delusion that they will provide for an alternative form of tourism that will be anything other than a drop of culture in the Mediterranean.


POLLENSA AND ITS ACCOUNTS
One might have imagined that budgets for the current year would long ago have been approved, like last year for example. Not so in Pollensa where problems are never far from the town hall's agenda. According to the "Diario", the budgets will be "finalised" this coming Tuesday. Oh well, better late than never. And taking account, as it were, of the tardiness of their completion, the town hall is employing a company to put together next year's accounts somewhat earlier and also to oversee financial control of the council's accounts. As always, there is an opposition politico who begs to differ with the approach, but rather more fundamentally, the fact of employing an outside firm suggests that the town hall simply lack the competence to do what should be one of their main tasks.

I don't know how financial control of the town halls is performed here, but given the debts that many have and to say nothing of the periodic scandal that erupts, there is much to be said for a system of external control. In Pollensa's case, they may just have stumbled across the right solution for the wrong reason, though this still raises a question as to the existence or rigidity of some form of external audit. If an audit is not mandatory, it damn well ought to be.


REAL MALLORCA ... MORE CARRY ON
"Ultima Hora" has a line today. It describes the events surrounding the proposed takeover of Real Mallorca having a touch of the Marx Brothers; it also describes the events as a soap opera. Perhaps they should really be a Carry On. Carry On Prevaricating, or some such.

Yesterday was meant to have seen an agreement. Now it will be next week. Maybe. Meantime the coach of the team is asking desperately for some clarification of what's going on. The shadow of Freddy Shepherd still looms over the takeover, as does the more shadowy figure of an unnamed Russian magnate. Paul Davidson, for his part, remains confident, and "The Bulletin", front pages with "Real Deal" today. A more sober assessment is to be found in the pages of the Spanish press which sets out the current situation. The fact is that Davidson, who initially tabled an offer far higher than that of Shepherd, has moved to a lower price. When I drew a comparison with Mike Ashley the other day, one thing seems clear: he is performing a thorough process of due diligence, and quite rightly so. Ashley didn't, and that was just part of the reason for the mess he's in. Presumably the examination of the books has led to the lower offer. Meanwhile, Vicente Grande, the current owner, played by Kenneth Williams in the Carry On version, is getting it from all sides - "Infamy, infamy, they've all got it in for me".

If Davidson doesn't in the end take the club over, it won't be for lack of trying. But perhaps his initial offer was no more than an opening gambit to kill off the Shepherd bid. Now both parties are mired in the legal process, things have become that much more complicated. Maybe Mr. Grande underestimated Mr. Davidson. If so, he should have taken time to study Davidson's landmark triumph over the UK Financial Services Authority. This is a canny businessman who may yet succeed in his acquisition. And perhaps we will find out if he has this week, or perhaps we won't.


QUIZ
Yesterday's title - The Walker Brothers (http://www.youtube.com/watch?v=YJ8XLglx8HQ). Today's title - "... and nothing to get hung about."

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