I was thinking this weekend about the system that Japan had until the mid 90's. The average employee or "salaryman" would work for the same company for pretty much all his working life. The company if big enough would provide subsidized apartment style accommodation, which while cramped would be adequate for a small young family of 4.
Japan has changed and the "Lifetime Employment" norm has changed. However there were some good things about this system because although it allowed the company to keep salaries down and keep more wealth to reinvest back into the company and products, the Japanese banking system and Pension systems set up to supply the company provided a good payoff at retirement. It usually provided the employee with enough of a cash bonus at retirement to buy a piece of land and build at least a modest home within commuting distance to a large city such as Tokyo, Osaka, Sapporo etc.
Japan was not and is not aloof from corruption itself, but still the system kind of worked in its day. I am about to suggest something similar that would work in England. English housing is a mish mash of old bricks and mortar semi-detached houses built in the 1940's and 1950's. They were planned as temporary housing, but these ill equipped houses make up a big chunk of the UK housing market. Originally sole for around 5,000 pounds they now command 100 times that amount. The alternative is modern timber framed houses on an estate purposefully built buy a large building conglomerate. The modern estates will cosmetically have several house designs to make them appear unique, but inside they are tiny box rooms not useful by today's living standards.
The third alternative is a self build where the individual has to seek land for purchase, apply for planning permission (from the local council), upon acceptance of his building plans he has to employ a builder or builders to complete the work.
Eventually, he may end up with his dream house on a piece of land that is too small for the house and a 5 mile drive from the nearest railway station where the main line to London does not run on time and has frequent cancellations.
One of the reasons is that when a site (for example and old factory that has been relocated), comes up for redevelopment, the council does not look at individuals who want to purchase small plots from the large area, the councils will set up a bidding system with national sized building firms. These firms have the financial clout to pay backhanders, bribes or other incentives to secure the lot for their own purposes. This must be outlawed.
Basically, the government should set up a scheme to encourage people to work. An agency which is a subsidiary of the Central Bank (Bank of England), and the National Land Registry would have total and absolute control. Long term employees would have a 20 or 30 year plan to fund their own house. (Private purchase would not be outlawed, but the same agency would control all land title matters and purchases. In the first ten years of service his employer (via the agency) would provide the employee with a savings scheme to buy a piece of land). In his second 10 years or more his savings would be attributed to building costs. If the employee has enough good work experience and enough credit he can buy the land before 10 years is up. Changing company will not be a problem like the old pension plans of yesteryear, since the agency will be a semi government agency, contributions will be portable. The agency would collect contributions from the employee and the employer. The Employee could elect to have any bonus included as well.
The "semi-detached" problem would have to be dismantled. U.K. zoning and planning restrictions haven't been changed for years and years. In the old days having everything all the same and all in a line was thought to be good. These days people want to be individual and as much as possible custom build their house. There are others who think that post war semi detached houses are the greatest thing since sliced bread and would refuse to change for anything.
The agency would be responsible for finding out which current semi-detached owners would be willing to tear their half down with their neighbor and divide the plot for an individual detached house. Zoning laws would change in these areas to allow a 2 or 3 story design with or without basement.
Local builders in association with local architects would design portfolios of suitable, customizable houses. Large builders could offer an all-in-one service including fixtures and fittings where the builder would act as project manager for the buyer.
Those living in semi detached homes and did not want to change would be offered relocation with financial assistance to do a house swap into a street where the majority of semi-detached owners prefer not to change.
Some will argue that the saving scheme may not keep up with inflation. In response I say that if we fix capitalism with national schemes that cut out the "Greedy Crapitalist", the price will more or less be the same this year, next year and in 10 years time.
It would revitalize the nation and provide competition and value for money in the sleepy monopolistic housing market that exists today.
The U.K. also needs to draft a constitution to protect peoples rights and a tier 2 constitution like protected law base. This second tier law base would protect laws that have proved to be excellent or successful from being changed by alternating governments. The qualifications to get into the protected laws would be strict, changing them would be difficult, but they would be reviewed annually. However the public would have the vote to change by electronic terminals for these laws, not the polytricians with vested interests that inhabit and inhibit parliament.
No comments:
Post a Comment