Shaking from cold and shock, the commander fished inside his pocket and pulled out the small brass-encased compass. He opened it – it was still in one piece. He handed it to his wife and gave her the course to steer before flopping back down onto the wet floor of the dinghy.
The Ops Room and the command centre were on tenterhooks. The presence of the two Moroccan jets was going to make things very difficult and a major diplomatic row was the last thing the Government needed right now.
Colonel Gray sent a message to the House. The Chancellor was advised that he would have to speak for at least another forty minutes before the PM could reveal his hand.
The Chancellor leant forward and tapped the pile of folders in front of him, sending an acknowledgement to the Ops Room. He pulled out a red folder. ‘I now wish to tackle one of our “sacred cows”. It is a matter which has held back our economy and resulted in a disproportionate and inefficient allocation of capital away from production. At the present rate of decline, manufacturing’s share of output will soon be less than ten percent.’
The silence was broken by MPs shuffling in their seats in anticipation of what was to follow.
‘We live in a country where our home is our castle. Where we live is an integral part of our well-being. Those of us with above average salaries have the ability to occupy homes near to where we work, homes that are very comfortable to live in, but which are also very expensive. Too many of those who provide our public services and make our economy and our lives operate efficiently and harmoniously have been priced out of the market. They have been forced either to move long distances away from where they work or to live in substandard accommodation. Furthermore, the lack of appropriate accommodation near to where they work has prompted many individuals to leave their public sector jobs. Nurses, teachers, firemen, street sweepers, policemen and many, many more who work to make our lives better view owning a home as an impossibility; something they would love to afford in the right location, with the right amount of space, but that is financially out of their reach.’
The Chancellor looked up at the camera. ‘Our love affair with housing has created exorbitant house prices and a dearth of affordable housing. These two factors are two of the – if not the – key factors driving social exclusion and social deprivation.’ He paused for effect. ‘Why should we have to live in homes which have prices far exceeding their building cost? Economists maintain that it’s all to do with the immovable laws of supply and demand, but I have a different perspective; one borne out of the necessity to rectify the current inequity. The current housing market solutions for those on low salaries – namely, affordable housing, equity sharing and the like – make house ownership for the less well off a very risky business. Were these shared equity schemes a stock market product, I am sure that they’d be outlawed by the Financial Services Authority as being far, far too risky for a family’s largest investment.’
Rafi watched intently as the Chancellor paused and took a sip of water. The Chancellor still had a lot of talking to do, before the terrorists were captured, and only then could he get onto matters relating to Stratford and the economy. Rafi wondered how he would fill the time. Would his initiatives be new and innovative, or re-cast proposals which had already been announced? Rafi hoped that they would be the former. Now had to be the time for the Chancellor to be bold and housing was a good place to start…
‘I now turn to another fundamental problem with affordable housing and housing for our armed forces and their families. This housing is low cost. It provides small residential units, not family homes, and encourages poor quality buildings. Furthermore the specifications of these low cost houses are environmentally unsound. We are stacking up problems for future generations: ghettoisation and the creation of the “haves” and the “have-nots”. Our housing, when energy is a scarce resource, must be built to environmentally sound standards. The further we make our key and low paid workers commute, the less environmentally sensible it is – and the less able they are to enjoy their work and their home lives. In London, too many key workers lose over two hours a day commuting, not because they want to, but because they have to. For too many, between ten and fifteen hours a week are wasted. This is very poor use of people’s time; it spoils people’s quality of life and does not foster a contented society.’
The Chancellor moved up another gear. ‘This Government will introduce a new ownership structure: indexhold. Indexhold is an uncomplicated structure: it simply uses the tried and tested legislation for leasehold property which will form the basis of the legal relationship between the freeholder and the indexholder.’ He paused for a moment. ‘Key workers and members of the armed forces will be able to purchase homes through indexhold ownership. These will be long leasehold interests at a nominal rent. The purchase price for the indexhold interest will be the gross building cost. It is the high cost of land that has pushed up property prices and driven away key workers from city centres. Indexholds will enable people to own their home, but at a sensible price, will provide new housing that is environmentally up to standard and will rebalance the fairness of the position.’
Rafi was amazed; what a remarkable concept, so logical, and so straightforward! It would, over time, dramatically improve the lifestyle of key workers and be tremendous for the economy -there was a need for hundreds of thousands of new homes and this would provide house builders with an environmentally friendly product to champion. He listened intently as the Chancellor continued.
‘When the owner of an indexhold interest decides to move and sells their home, they will receive their initial purchase price plus a sum representing the inflationary increase. The freehold will be owned by a public body or a charity and they will have the first right of purchase on a sale. They can be expected to exercise this option to buy back the indexhold interest as the price will be significantly below that which the property could be sold for on the open market. At this point, the indexhold interest will then become available for sale to another key worker or soldier on another long lease.’
‘In practical terms, the money raised by selling indexhold interests will be used to build the right types of homes, with high environmental standards, on land owned by the state. This proposal will assist those wishing to live close to their work in our large towns and cities, but will also be extended to rural communities to enable locals who are being priced out of their villages to remain there or get back into them.’
The Chancellor let slip a small smile. ‘There will be another benefit. As there is a guaranteed blue-chip purchaser of the indexhold interest, namely the freeholder, mortgage lenders will factor this into their interest rate charges. Gone will be the days when the less wealthy are penalised for having poor credit histories, low salaries or small deposits.’
Rafi realised that he had been listening in awe, completely distracted from the events at Safi. Something good would come out of the Stratford catastrophe. The Chancellor had, in a single stroke, introduced an initiative that would, over time, improve the lives of hundreds of thousands, if not millions, of people – and free up capital which could be deployed in more productive areas of the economy.’ This was a very timely and socially astute initiative.
Rafi glanced across to the clock. It had been several minutes since the commander had jumped ship. From the dots on the screen he could see that Golden Sundancer was making an excellent turn of speed away from the dinghy and the two life rafts.
Suddenly over the radio came the voice of a Moroccan fighter pilot in heavily accented English. ‘Golden Sundancer!… Golden Sundancer!… I have you on my radar – bring your boat to a stop. I say again, bring your boat to a stop!’