News digest 11 February 2011
The digest starts with votes for
prisoners, or not as the case may be, before ex MPs are in the
dock. There’s no change in interest rates, but the cuts are
challenged and the Centre for Policy Studies looks to abolish
public sector pensions in their current form. There’s more on the
Big Society, an attack on ‘zombie’ bankers and a bonus for Boris’
aide while Kraft’s profits crumble and Diageo loses its
fizz…
No votes for prisoners – MPs
defy European Court of Human Rights to deny prisoners the right to
vote. In a vote in the Commons members voted by 235 to 22 to keep
the current ban, Cameron abstained but his justice secretary Ken
Clarke is expected to still want to bring in legislation to give
convicts the vote this autumn (Mirror p7, Sun p1, Express p4, Mail p1, Times p3, Indie p22, Guardian p26, Telegraph p1).
Ex-MP imprisoned – And from
votes to the cells as Jim Devine is found guilty of cheating the
taxpayer of £8,000 and Eric Illsey – who admitted fiddling £14,000
- is jailed for 12 months (Mirror p15, Sun p16, Express p9, Mail p19, Times p11, Indie p22, Guardian p20, Telegraph p17).
No change – And for a record
23rd month interest rates remain at 0.5 per cent, and may stay so
as despite inflation hovering around the 4 per cent level; the
latest economic data shows a dip in manufacturing of 0.1 per cent
in December as the recovery stalls (Mirror p60, Express p6, Guardian p31, Telegraph b3, FT p3).
Cuts challenged – Osborne
dismisses appeal by senior Lib Dem council leaders over the speed
and scale of cuts as a letter to the Times signed by 90
councillors. The letter claimed the cuts would damage the economy
and hit the most vulnerable, not sure what took them so long to
work that out, perhaps the number of council by-elections they are
losing. Interestingly the FT (p2)
also reports that Tory councils are joining in too; they’re worried
about cuts to youth services and other voluntary groups (Express p11, Mail p12, Times p16).
Abolish public sector
pensions? – That is the call from a Centre for Policy
Studies report by Michael Johnson, he argues pensions are too
expensive for the taxpayer but drew a furious response from unions
(Express p2, Mail p12, Telegraph b1).
Abolish workers’ rights –
Institute of Directors leads call to abolish rights on workplace
safety saying cost is £36.8 billion a year (Morning Star p1).
Poor hit hardest – Another
hit for low paid workers as TUC report shows the Con-Dem cuts will
hit working families to the tune of £2,700 despite a promise there
would be ‘no losers’ from the austerity package (Mirror p7, Morning Star p2).
Big society steps in? – The
front page of the FT says that the
‘Big Society’ bank will not be able to plug the spending cuts gap
as the government expects to raise £250 million to lend to
projects, New Philanthropy Capital however argues charities will
face cuts of £3-£5 billion, not sure those sums match. And in the
Guardian (p19) the Bishop
of Oxford Rt Rev John Pritchard says the ‘Big Society’ will
actually widen the gap between rich rural areas and deprived
cities, summing it up as Cameron’s “cover for
cuts”…
Boris aide paid off – But
business as usual for the Tories and their chums as Leo Boland –
the man mayor Boris Johnson brought in to head the GLA in 2009 – is
to step down with a redundancy package of £296,000, a fair use of
London taxpayers’ money? I think not (Express p15).
Zombie bankers – The Sun (p60) highlights how one of the
City’s most respected figures has torn into Lloyds boss Eric
Daniels saying he was not worth a penny of his controversial bonus
claiming the Lloyds boss was “incompetent” given the huge losses
after the merger with HBOS (Mail p80).
Not so easyBonus – Stelios
lays into easyJet for awarding former boss Andy Hamilton £1 million
for just three months work (Sun p61, Express p68, Mail p83, Times p55, Guardian p35, Telegraph b3).
Credit charge probed – The
top up charged for travellers paying by credit card by companies
like Ryanair is to be probed after consumer magazine Which? Files a
super complaint with the Office for Fair Trading (Sun p6, Express p15, Mail p4, Times p49, Telegraph p8).
Qantas bill – Rolls Royce
takes a £56 million charge for the engine explosion on the
Australian airline (Mirror
p60, Sun p61, Mail p83, Times p49, Indie p37, Guardian p35, Telegraph b8, FT p18).
Air France warning – Airline
warns of overcapacity in the aviation sector expecting profits to
be hit (Guardian p35).
Diageo hangover – Drinks
giant sees a dip in UK sales although group profits rose to £1.6
billion as world-wide business fared better, UK demand for Guinness
fell 2 per cent and Smirnoff vodka by 16 per cent (Mirror p60, Sun p61, Express p65, Mail p83, Times p50, Guardian p32, Telegraph p17/b1, FT p15).
Kraft profits crumble –
Cadbury owner last night cut its profits forecast after it saw a 24
per cent reduction in last quarter profits down to $540 million
from $710 million the previous year (Sun p60, Times p49).
Pepsi pressure – and the
drinks giant cuts its earning outlook to 7-8 per cent as input
prices cause pressure on costs (FT
p19).
Electric sale – EON is
considering three fresh approaches for its UK electricity business
in a deal that could fetch as much as $6 billion (FT p21).
More protests – And finally
as Ed Miliband’s team confirm he will take part in the March for
the Alternative on March 26 UK Uncut announce more plans for
protest, this time they are looking to demonstrate in bank branches
around the country (Mail
p30, Guardian p12,
Morning Star
p3).
Edited by Mik
Sabiers
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