However much we may dislike politicians, they still beat management consultants

Last Thursday night I stepped briefly through the looking glass into the world of the super-rich. They really are different from you and me.

Over dinner, my host explained how he needed an income of at least £20 million a year (before tax, which he sportingly pays, unlike so many of his peers) to maintain his houses, yacht, staff and overall standard of living. Since he is a billionaire this should not present too much of a challenge, even at current interest rates.

Then a multi-millionaire fellow guest mused that he could happily give up almost every aspect of his lifestyle tomorrow, without regrets. Only one thing would be a real wrench to lose: private flights.

Having hitched one or two lifts on private jets over the years I can confirm that avoiding the hell of public airports is indeed a deep joy, though personally I find the economical alternative of never flying anywhere equally acceptable.

Did I feel resentful of the wealth of these two men? Far from it. The richer is an entrepreneur who started life with no advantages at all. He turned a simple idea and a capacity for hard graft into a huge fortune, creating many jobs along the way. Even the most ardent campaigners against excessive pay seem willing to make an exception for those who build great businesses from scratch.

The other is the chief executive of a public company, but a notably successful one that has rewarded its shareholders well over the years. He also charmed me by revealing that one of his small pleasures is allowing his PA to put through calls from the heads of management consultancies, who invariably introduce themselves with a well-worn spiel about the matchless expertise their organisation can offer.

“Really,” he replies disarmingly. “Are you experts in all those things? What a remarkable coincidence. So are we!”

And then he quietly replaces the receiver.

I warm to this approach because, to me, the single most annoying thing about the massive inflation in executive salaries in recent years has not been the way it has been organised through cabals of “independent non-executive directors” who are actually all members of the same self-interested club. No, it is the way so many business leaders seem unwilling to make their own decisions, even though that is surely precisely what they are being paid so generously to do.

Instead they call in management consultants to outline the options and advise on the optimum course of action. In my experience this will either be a blinding statement of the obvious or a recommendation that the application of only a few moments’ clear thought will show to be laughably and dangerously wrong.

And all for a mere seven figure fee. No wonder that management consultants are so widely derided as people who borrow your watch to tell you the time, then walk off with it in their pocket.

This may seem rich coming from one who scratches a living as a consultant himself, and in a field (public relations) which most honest practitioners will admit is principally about the liberal application of common sense.

All I can say in my defence is that at least I have never been greedy, or seriously damaged the prospects of my clients. So far.

As for my super-rich pals, there is clearly no need to worry about them as a private jet will always be on hand to whisk them off to some more tolerant part of the world if Britain turns seriously resentful, as it may well do as the screw on general living standards tightens in the years ahead.

Our politicians are only brave enough to hint that there might be a temporary blip in the upward march of prosperity, not that the good times are gone for ever. But if they told us the truth and we rose up against them, what would be the alternative? Technocrats. Or, to put it another way, experts. Management consultants.

If it ever comes to that, the top National Lottery prize should surely not be cash, but a place on the last private jet to leave the country.

www.blokeinthenorth.com

Originally published in The Journal, Newcastle upon Tyne.

Small satisfaction in being proved right as the storm clouds gather

I find it hard to believe that almost two decades have passed since the Conservative party was tearing itself apart over John Major’s determination to ratify the Maastricht treaty, despite Britain’s ignominious exit from the Exchange Rate Mechanism.

"Bastards!"

That, it seemed to me, should have been evidence enough of the utter folly of attempting to lock exchange rates between divergent economies. But the ideologues pressed on regardless with their creation of the euro as a means to advance the cause of a single government for Europe.

Turned out well, hasn’t it? Having been castigated as a backward-looking little Englander for opposing this half-witted project, I hope I may be forgiven a moment of quiet satisfaction as I read the recantations of many of the scheme’s cheerleaders; there was a particular corker in one of the Sunday papers from the former editor of the Financial Times.

But unfortunately we are where we are: in the most horrible mess, with deeply depressing implications for prosperity, democracy and even peace.

Images of Greek protesters and rioters have been removed to avoid potential charges (financial, not criminal) from the money-grubbing image copyright police.

All going terribly well

In the early 1990s I had regular arguments with a distinguished client who was one of the leading lights of the pro-euro campaign. When his economic arguments failed, as they always did, he fell back on the spectre of war. Binding Europe together with a single currency was the only way to preserve the peace that had lasted since 1945.

It always seemed to me to be taking an excessively negative view of the Germans to believe that the only way to stop the Panzers once more rolling into Poland or Alsace was to give Germany a pivotal role in the economic management of the whole Continent.

Far more likely, I argued, that the creation and inevitable collapse of a supranational authority with no popular mandate would ultimately cause conflict, rather than preventing it.

It gives me no pleasure at all to note that this is exactly how it looks today, as the elected governments of Greece and Italy are deposed in favour of administrations led by “technocrats”.

This may not sound too bad, particularly as an alternative to a buffoon like Berlusconi. But how would we have felt if Gordon Brown had exited Number 10 not following a General Election, but because he had simply been sacked by the Queen, acting as proxy for the European Commission, and replaced by Baroness Ashton or Mervyn King?

Surely it is worth bearing in mind that the global banking crisis was the creation of the technical experts in that field, and that what we desperately needed was not more technocrats but more lay people with a smattering of common sense saying loudly and repeatedly “Hang on, this is completely mad.”

Right now, the ways forward seem to be the collapse of the euro, causing widespread economic misery; Germany picking up the gigantic bill to keep the euro together, which its taxpayers will not wear; or China backing down on its unsporting refusal to drop a few trillions into the proffered European hat.

Whichever way it goes, the implications look bleak for the future of democracy, and the avoidance of civil unrest and international tension. Yes, those of us who argued against British membership of the euro have done the country a service by keeping us off the passenger list of the doomed liner, but our rather frail craft stands no chance of enjoying a smooth passage as the whirlpool of catastrophe on the Continent does its best to suck us down.

So we sceptics were bang right. Big deal. Move on. But do please bear this lesson in mind the next time someone tries to sell you an idea wrapped up in the phraseology of progressiveness and inevitability.

A rare image of a wind turbine actually doing something

I will take similar momentary satisfaction, a decade or two from now, when the eager proponents of wind power finally admit that they were completely wrong. But by then our finest landscapes will have been desecrated by useless turbines, and we will be sitting in the cold and dark. And there will be no quick, easy and painless solution to that avoidable mess, either.

www.blokeinthenorth.com

Originally published in The Journal, Newcastle upon Tyne.