Tourists pose outside Buckingham Palace. PA / Getty
Tourists pose outside Buckingham Palace. PA / Getty
Tourists pose outside Buckingham Palace. PA / Getty
Tourists pose outside Buckingham Palace. PA / Getty

Anti-monarchy group calls for Buckingham Palace to open all year round to pay for repairs


Simon Rushton
  • English
  • Arabic

Buckingham Palace should be open all year, with the money earned used to pay for its upkeep, an antimonarchy group said.

This weekend, the palace opened for its first paying customers of the season, who were, in turn, able to see Palace refurbishments paid for by taxpayers.

Republic chief executive Graham Smith said the group accepted the palace’s significance and importance, but a new way of paying for its repairs was needed.

“With that ticket revenue that you raise, you will then be able to fund these sorts of repairs and restorations without coming back to the Treasury,” he said.

“We have hospitals and schools, police services struggling to make ends meet.

“We have arguments about public sector pay being kept down and all the while, we are pouring millions and millions of pounds into fixing this one building. It is an absurd waste of money.”

Visitors this season can see the results of the refurbishment, paid for with the government-approved sovereign grant, and a platinum jubilee exhibition.

“Buckingham Palace should be open all year round, but it is now largely a ghost building. People don't live there,” Mr Smith said.

“The Queen is in Windsor, Charles lives in Clarence House or Highgrove or one of his other many homes, and it is largely just housing staff as far as I am aware.

The dress, robe and coronet worn by Princess Elizabeth to her parents' coronation are on show. PA/Getty
The dress, robe and coronet worn by Princess Elizabeth to her parents' coronation are on show. PA/Getty

“There just is no justification for leaving it standing there unused, all year round, except for the occasional garden party.”

Buckingham Palace was first opened to the public in 1993 after a fire devastated Windsor Castle, where the queen now lives.

There was a deal that money from palace visitors would fund the repairs at Windsor.

Politicians agreed in 2017 that the sovereign grant would be increased over 10 years to allocate £369m to refurbish Buckingham Palace.

The costs last year were £47.8m, £16.2m more than the year before.

Buckingham Palace enjoyed a starring role in the queen's jubilee celebrations that included an aerial fly-past and a concert.

Queen Elizabeth II also travelled up from Windsor for a balcony appearance.

Jubilee celebrations

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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If you go

The flights

There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.

The trip

Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.

The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.

 

Updated: July 25, 2022, 1:19 PM