The Exchequer

Where J’accuse ventures into the strange and mysterious world of public finance and expenditure.

The word “exchequer” has its origins from Norman French some time after the conquest by the man known to the English as William the Bastard and to the French as William the Conquer. The payment of dues to the king at the time used to occur in a huge room where monies were counted on table decorated in a boxed pattern very similar to the chess table (chequered). The word échiquier,  French for chess table, became the word for the Exchequer – what we would call today the Treasury. Incidentally the reason for the chequered table was to use the different boxes to place counters representing the various values due (depending on position).

As the size and scope of the management of the State grew, the importance of the Treasury expanded beyond the need of financing the wars of His or Her Majesty. What did not change was the main way of financing the exchequer – by taxing the people. Throughout history different people have got royally pissed off at the way their leaders managed the money (especially as they grew more aware of the source of all that good) and the progress towards democracy can be traced through various steps of improving accountability of the people in charge of the keys to the treasury to those who provide the majority of funds for the treasurz to exist.

Which is why whether we are aware of it or not, much of the importance of selecting the right people to “govern” a country lies in choosing people who will “manage” the money wisely in our name. Over the past weeks we have seen an increasing backlash against governmental decisions – some reactions were wiser than others. On the whole it was the demos complaining that the managers were no longer able to value fruits of their hard earned and hard paid taxes.

Today the offers for the spoils of the Drydocks have been announced. These involve 30-year concessions for the Malta Shipyards, Manoel Island Yacht Yard and more. The former attracted a bid of €67.3m over 30 years – a little above €2m a year. Manoel Island Yacht Yard went for €12.4m over 30 years – that’s €0.4m a year. In my ignorant corner of little or no business acumen this looks like taking the keys to two prime publicly-owned locations and throwing them away for thirty years for a pittance.

Not a pittance you say? The government has absolutely no qualms to making a one-off payment of €55m to bus owners in the guise of the most twisted and unjustified compensation scheme ever to be invented.

Call me ignorant – and you can in this case because I am really hoping that an economic guru proves my worries to be unsubstantiated – but looks like we sell for the cheap when it comes to earning some money but then we can fritter away the big ‘uns when it comes to paying out.

Next time you go out to vote simply think: “now who would I trust with my wallet and shopping lists?”

sources: The Times