Banks and the future

I have been speaking to a range of people recently on the future of money and in particular the future of finance. The media will tell us that banks are a spent force, but it would seem that actually Governments are a spent force. The threat of credit agencies down grading government ratings is not a step that will encourage them to spend.

So as a result where does that leave funding in the economy. Banks, were never going to be the catalyst. My one wish in all this is that we'd stop expecting them to suddenly open a sluice gate. We are just as much to blame as the Banks are. Ultimately they are controlled by their shareholders and always will be. The mutual movement has signs of hope in the retail sector. The sensible businesses that held true to their business models still have a vital role in the mortgage and saving market. The area that retail finance needs to focus.

But the driving question is growth. Growth will come from business and SME's will be dealt with by the Banks. This is their focus, and we shouldn't punish them for that. Good businesses will continue to get support.

But what about start ups, community enterprises, the big society, renewable energy, co-operatives. I heard a story the other day that the Co-Operative Bank had suggested a new business venture avoid using the Co-Operative model as they didn't understand it.

This world is specialist and not very profitable to big institutions. A call centre couldn't support the demands of micro business. They need coaching, mentoring and support, but as recent micro finance schemes show they can be profitable.

So instead of blaming big Banks, shouting at the Government or thinking we are without solution, we need to start thinking about money and finance differently. There is a new age upon us, an age where money will change in its meaning. We will not just look for interest rates, but for the value our savings can add. Let's start mobilising and stop waiting for a clunky overly complicated Government to tell us what to do.

Big Society Bank in Leeds? Maybe just a community focused mutual in Leeds!

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Is our future Nuclear?

Recent, tragic occurrences in Japan have raised yet more concerns over the use of Nuclear power in the long term. The government has been a key driver in the establishment of Nuclear Fuels in the UK funding research and build costs of power stations up and down the country.

However, this is also, potentially, the most environmentally damaging energy source. Whilst it is low carbon and a good chunk of the material can be recycled it can have devastating implications on the global environment when it goes wrong. The mining of Uranium is hardly clean either.

The question has to be, why does the government continue to support and plough capital into Nuclear power but is so reticent to do so with true renewable energy such as tidal, wave, wind and hydro? With our geography and topography these are surely where our future energy opportunities are. When will people sit up and start thinking long term.

I am sure that all those NIMBY's who oppose wind turbines would rather have 20 turbines on the landscape than a new Nuclear Power Station on their doorstep. It seems to be that we have to start making that choice sooner rather than later, however to achieve the scale needed we need national and local government to support with more than just words.

Changing the Future

Somebody said to me earlier in the week that business will seek locations with quality local energy supply. This is 15 maybe 20 years down the line but two things struck me. It is within my working lifetime (not just my lifetime), and it is a real issue.

Fossil fuel depletion is challenge for all of us. How much it costs us to commute to work, go to the shops, heat our house in winter and where we go on holiday in the summer. For business leaders it is even more of an issue. How do I keep my manufacturing plant running 6 days a week, how much does that cost me, can I afford to run a data centre in this location, where is my power coming from?

For most of us this is a bridge we will cross when we get to it. Electric/Hydrogen car, solar heating, a wind turbine in the garden. When my fuel bills hit £300/month I'll think about it.

But what about our policy makers, our leaders today and our leaders in the future. Are they planning, getting ready, pushing boundaries and making changes? If they aren't what are you doing to help them realise? What can you do? You'll find it is more than you realise...