News digest 11 January 2011

Unite’s Len McCluskey sets the day’s agenda in an interview on BBC’s Today programme, bankers’ bonuses are still commanding the headlines, Clegg’s got an alarm clock, while the type of jobs being created are questioned after Cameron’s summit, there are new cars aplenty in Detroit, but possible truck trouble in Luton, PetroChina snaps up Ineos and there’s trouble on the runway, a deadline for De La Rue and by-election blues for the Lib Dems…

Len’s outline - Workers have a "right" to protest against spending cuts and defend their jobs, said Unite general secretary-elect Len McCluskey on BBC Radio 4's Today. Len added there was "no likelihood" of a BA strike on the Royal Wedding day (contrary to rumours reported on the front page of today’s Mail) - and the dates for action had yet to be set as workers were still voting on it. The Guardian’s coverage sums it up well: Union leader urges David Cameron to stop 'bashing' workers. Len said the financial crisis had been caused by "spivs, speculators and greedy bankers.” adding “We are already back to business as usual, with the prime minister saying we should stop bashing bankers, but he has no problem bashing workers or communities. I am not calling for the government to be brought down, but we have a right to demonstrate against their decisions. The cuts agenda is morally wrong and economically dangerous. It is our duty to protest if we feel the government is doing something wrong." (BBC report/radio).

Banks and  bonuses – And all the papers continue to report on the government rolling over and just letting banks pay out billions. The Indie (p1/29) leads with RBS asking why a bank that is 83 per cent state owned and has been given more than £45 billion of state aid to stay afloat is about to lavish £1 billion of bonuses on its already richly rewarded investment banking staff. New Barclays’ boss Bob Diamond – who is appearing before today’s commons select committee – has said the fact that he is only taking an £8 million bonus this year is evidence of his restraint (Express p2) while the Telegraph (p1/b1) has comments from Digby Jones saying that bankers ‘got no praise’ for cutting pay last year, do any of these people live in the real world? It’s down to the Guardian (p8) to look at how the Tories have done a complete U-turn on bonuses with Osborne’s inexperience likely to have enabled bankers to run rings around him (Mirror p6-7, Mail p4, Times p1, FT p2, Morning Star p5).

Interest rate warning – And a couple of the papers start to bang the drum regarding interest rates saying many of the public have been lulled into a false sense of security with 0.5 per cent rates and could be hit as they start to rise over the year, do the Con-Dems have a plan B? (Express p8, Times p35)

Higher cost of being poor – And even as Osborne tries to argue VAT is progressive the Mirror (p8) highlights a Save the Children report which shows how the poor are charged more on a regular basis. Examples include utilities where gas and electricity companies charge higher tariffs, on top of that firms charge more for car and home insurance. The Sun (p4) also highlights how petrol prices are pricing the poor off the roads and the Guardian (p6) highlights that having to pay in instalments from more expensive catalogues with higher APRs exacerbates the problem; are you listening George?

Alarm clock Britain – Clegg says he wants to speak up for the hard working masses that are Britain’s backbone in an editorial piece in the Sun (p2) launching his new idea. The Telegraph (p6) and Guardian (p10) both highlight that the project is being led by former chief secretary to the treasury David Laws who resigned last year, so how in touch is Clegg?

Pleasant fees – Clegg’s understanding of the man in the street called into question by the Mirror (p14) as he says students will view their debts as a “pleasant surprise” rather than a heavy burden, probably thinks the cost is normal, after all he went to Westminster public school where the current fees are – you guessed it - £9,802 a year… 

Jobs summit – With unemployment rising, especially among the young, there’s more coverage of yesterday’s job summit. The Mail (p67) notes the Federation of Small Business asking why smaller firms were not invited, while many of the papers highlight that the jobs that are being created are not the high quality advanced manufacturing ones that drive development but service jobs, and with many in supermarkets they may not even be full time. In fact many papers report on the new jobs being almost exclusive to the supermarket sector as store wars rage. Even more worryingly the FT (p2) reports that the service sector is starting to slow down even before the VAT hike kicks in and there’s also coverage of the bad bosses charter as more unions echo Unite and the TUC’s call against giving companies the green light to hire and fire (Mirror p46, Sun p4, Express p49, Times p34, Guardian p26, Telegraph b3, Morning Star p4, Unite release).

More MoD cuts – The Telegraph (p14) reports that more than 3,000 vehicles may be cut with the number of tanks dropping from 400 to just 50. The Mirror (p9) and Times (p14) also stress that the military covenant – the deal which the armed forces get for risking their lives - may even be scrapped. 

BAE immunity challenged – The Mail (p67) reports that the controversial blanket immunity clause granted to BAE Systems over a plea bargain is set to be challenged.

Cars on show - From defence to the Detroit motor show where a number of announcements have been made. The Indie (p32) says Jaguar is expecting to see a surge in sales to China, while the Times (p39) looks at Ford’s new Focus which will be an electric vehicle, the FT (p21) says Fiat is planning to up truck sales, while the Mail (p36) reports that Rolls Royce is planning to introduce a new electric version, well suppose Boris can praise it as being exempt from the London congestion charge…

Truck trouble – But the Guardian (p26) reports that Luton could be under review after the GM chief executive said the company hoped to reach a decision over what to do with the Luton plant “within a month or two” and highlighted that the van market is prime for ‘electrification’ but faced considerable price pressure. 

Ineos goes east - PetroChina takes a stake in Ineos after agreeing a multiple billion pound deal with Ineos enabling the Chinese company to gain access to the European market and tap UK expertise. Unite’s Pat Rafferty said: “We have been working long and hard to secure the long-term future of this strategically important plant and highly skilled workforce, both of which are of paramount importance to the Scottish economy.” (Sun p39, Times p31, FT p1/3)

Snow sorry – BAA’s chief executive Colin Matthews apologises over the December delays and claims Heathrow did all it could in the Times (p20) while a number of papers report on Virgin withholding fees, and it looks like BMI may withhold too (Sun p39, Mail p67, Guardian p28, Telegraph b5).

Too fat to fly – Angry passengers threatened with arrest if they did not leave the plane which was overweight; 37 passengers given the boot found out it was not them but that the plane had too much fuel. Airline bosses have apologised (Mirror p29, Sun p12, Express p27, Mail p8, Telegraph p11).

Border agency bother – And with continuing pressures at the UK Border Agency MPs say any bonuses for senior officials should be scrapped until the agency meets expectations (Guardian p14).

Third of post offices could close – According to customer body Consumer Focus which calls for safeguards and a continued subsidy (Mail p13).

De La Rue deadline – Takeover panel says Oberthur given until 7 February to make formal bid (Mirror p39, Mail p66, Times p39, Telegraph b2, FT p16).

Bins bashed – The ongoing dispute of Birmingham’s refuse collectors continues with a work to rule, the Mail (p12) reports that the council said residents had reported crews driving into roads without collecting rubbish, but neglected to mention that this was probably casual staff employed to deal with the backlog.

Can opened – From Birmingham to Wigan and he Heinz workers reject the latest offer from the company and strike action is taking place in Kitts Green again today in the dispute over pay. Jennie Formby, Unite national officer for food and drink, said: “Following the result, Heinz management has said they want to enter into conciliation through ACAS and Unite has agreed to this. However, the company is fully aware that the industrial action will continue until we reach a settlement that is acceptable to our members so I hope that when we meet they will be prepared to add some real value to the offer. Our members have sent the loudest possible message to Heinz management – we deserve a better deal.”  (BBC news, MEN, Food Manufacture, Unite release)

By-election blues - And from Wigan to nearby Oldham where the Times (p11) says the Lib Dems have accused Labour of ‘playing dirty’ and providing misleading information. Labour described it as desperate stuff. Even worse for the Lib Dems the latest national poll in the Indie (p8) puts Labour on 42 per cent, eight per cent ahead of the Tories on 34 per cent, and 30 per cent higher than the Lib Dems poor 12 per cent, Clegg’s approval rating is minus 15, what’s the bet it gets even lower…

Edited by Mik Sabiers

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