The Adam Smith Institute
The Adam Smith Institute is the UK's leading innovator of free-market policies. Named after the great Scottish economist and author of The Wealth of Nations, its guiding principles are free markets and a free society. It researches practical ways to inject choice and competition into public services, extend personal freedom, reduce taxes, prune back regulation, and cut government waste.

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No gold watches
By Dr Madsen Pirie

A report in the London Times points out that new EU rules against age discrimination could eliminate many of the benefits given to reward long service. Young people could claim they were not old enough to qualify. Out might go the traditional gold watch, the admission into extra medical and other benefits, and even the party to celebrate 25 years of service.

The EU is guilty here only of carelessness: it is the gold-plating of EU rules which causes problems like these. While other EU members do not enforce the ones they do not like, British bureaucrats do it zealously. Even casual or sloppily worded directives are imposed rigorously. It derives partly from UK respect for the rule of law (apart from taxation and speeding, that is). This makes the burdens fall selectively heavily on Britain.

The intention was to prevent discrimination against older workers, but the first effect might be to outlaw any positive benefits they receive. Employers' groups are advising them to withdraw such privileges.

I always thought gold watches were over-rated. They are often handed out at retirement, just when the employee no longer needs to check the time. The civil service does it much better, handing out a £2 lump of bronze instead, and calling it a CBE. I hope that the honours system will be exempted from the new rules. Along with pantomimes, it amuses and brightens the early days of a new year.



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Adam Smith (1723-1790)
Adam Smith was the great Scottish philosopher and economist best known for "The Wealth of Nations", his pioneering book on free trade and market economics.

A wide selection of material about Adam Smith is now available on the Adam Smith website. This includes the full text of his two major works, The Theory of Moral Sentiments and The Wealth of Nations.