News digest 17 June 2011
The digest starts with another bad
decision from the government this time over train manufacturing,
before changes to public sector pensions are outlined, there’s some
union bashing while councils are told they should cut more as a
whole host of different services and groups are for the chop and
high street sales drop, there’s a little help from Tesco, easyJet
eyes Southport, Balls calls for a cut and Clegg cracks a
joke…
Train future in doubt – The
future of what is left of Britain’s train manufacturing industry
has been jeopardised by the department of transport after it
awarded a £1.5 million contract for 1,200 new carriages to a German
company rather than Derby based Bombardier, 3,000 jobs are now at
risk. Unite regional coordinating officer, Mark Young, said:
"This news is a hammer blow for Derby and for British
manufacturing. The government's decision to award this contract to
a consortium which does not have British manufacturing and British
job creation as its prime focus is absolutely disgraceful. The
decision is a major blow for jobs in the East Midlands, not just at
Bombardier but in the local supply chain, which has the largest
concentration of train supply companies in the UK.”
(Sun p58, Express p2, Times p57, Guardian p30, FT p4, Morning Star p5, Unite
release)
Work longer, pay more, get
less – Chief secretary to the treasury Danny Alexander
will outline changes to public sector pensions today meaning
teachers, nurses and council staff will have to wait longer to
receive a smaller pension, for which any earning more than £15,000
a year will also have to pay more. By offering this small sop to
the lowest paid Alexander is trying to argue there is no need for
the strike action lined up for the end of the month and actually
threatens that if workers strike their pensions will suffer as a
future offer on the table will likely be worse. Unite condemned the
Treasury-led attack on the on-going talks between ministers and
unions as ‘disgraceful’ with assistant general secretary Gail
Cartmail said: “It is completely wrong of Danny
Alexander to hit the media airwaves to make detailed announcements
on the current negotiations … we have moved in the flash of a media
soundbite from tough, detailed negotiations to gunboat diplomacy by
the Treasury.” (Mirror p6, Sun p8, Express p2, Mail p1, Indie p7, Guardian p2, Telegraph p1, FT p3, Unite
release)
Union bashing – And the
Express (p33) bangs the
employers’ drum with a hatchet job on Bob Crow ahead of the tube
strikes next week. The paper also provides a list of leading union
leaders that it says want to ‘ruin summer’ while the Sun (p8) tries to accuse unions of
being two-faced over government pay-offs…
Strike changes on hold for
now – But the Guardian (p11) reports that
employment minister Ed Davey has rejected making any changes to
employment laws saying that to do so would be ‘antagonistic and
inflammatory’ as Britain did not currently have a strike problem;
it’s an employer problem.
Councils can cut more – But
the Express (p1) reports on
a speech by communities secretary Eric Pickles who said that
councils are wasting some £10 billion a year, in contrast to the
£2.6 billion cut from town hall funding by central government,
although even the report cited by Pickles admits that savings take
time to implement and Pickles’ front loaded cuts don’t allow for
that…
Conditions for the chop – A
few of the papers follow up the latest on Southern Cross, it seems
that staff have been asked to sign away employment rights to
prevent the company’s closure, no news on what the management will
be expected to give up (Guardian p6, Morning Star p5).
Helicopters for the chop –
The Telegraph (p6) says
the MoD has begun a review of helicopter requirements which could
see an order for 12 new Chinooks scaled back.
Hospitals for the chop – And
the Times (p1) splashes
on a call from Dr Peter Carter, head of the Royal College of
Nursing, who says failing hospitals should be closed saying there
are too many acute hospitals in urban areas and that a proper
debate on the NHS and hospital care should be undertaken.
Journalists for the chop –
And the Indie (p17),
Telegraph (b3) and
FT (p20) report that the Guardian
media Group will be forced to cut journalists as it looks to make
savings after recording a £25 million loss, the word is that the
daily will be slimmed down…
Hilton for the chop – David
Cameron’s chief spin doctor may be planning to quit Downing Street
over the retreats on the NHS and other U-turns (Mirror p7,Mail p12, Telegraph p2).
Campbell
quits – Not the spin doctor, but Tom Johnson, an
aide to London mayor Boris Johnson has quit his role over comments
that he shoplifts from stores (Mirror p16, Guardian p21, Telegraph p5).
Shop sales drop by £350
million – And consumers have cut back sharply with a 1.4
per cent fall in high street sales, the biggest fall since records
began in 1994 and twice as bad as expected (Mirror p62, Times p58, Guardian p30, Telegraph b3, FT p4).
A little help from Tesco –
The Sun (p59) reports that
the high street retailer has offered all workers a 2.5 per cent pay
rise which should take many workers over the £7 an hour level,
shame that inflation is over five per cent so it is an effective
pay cut.
Car production drops – And
poor consumer confidence and the ongoing impact of the Japanese
earthquake sees a 4.9 per cent fall in UK vehicle production
(Indie p49, Telegraph b4).
Call for fuel price cut – And
the Mirror (p16) says petrol
companies are still not passing on price reductions to consumers
when oil prices fall, but continue to raise them as the crude
prices edge upwards…
Call for air duty cut – And
Virgin crew demonstrated outside the Treasury yesterday calling for
planned rises in air passenger duty to be abandoned as consumers
face the squeeze (Mirror
p62, Express p7, Times p24, Telegraph p12).
easyJet eyes Southport – And
the budget airline is to launch 70 new flights a week from Southend
airport in a plan to fly 800,000 customers a year from the airport,
although it may scale back some services at Stansted as a result
(Mirror p62, Sun p58, Express p65, Mail p25, Indie p44, Telegraph b8, FT p18).
Rolls £100 million deal – And
from the skies to the sea as Rolls-Royce has announced orders worth
over £100 million to supply thrusters for deepwater drilling
vessels which will be built in Asia (Mail p81).
Lloyds loses out – But not
such a good deal for Lloyds which the Telegraph (b3) reports is sitting
on a £500 million loss from its exposure to property group
Targetfellow.
Capital clampdown – And the
FT (p1) reports that the world’s
30 biggest banks are in the sights of global regulators which want
to place additional capital requirements which could see surcharges
of 2.5 per cent of their assets; regulators are due to meet in
Switzerland next week.
Call for VAT to come down –
Shadow chancellor sets out his stall to boost the economy (and
maybe his leadership hopes) saying that VAT should be temporarily
cut by 2.5 per cent to help consumer confidence, although many of
the papers ask where will the money come from? (Mirror p9, Mail p6, Indie p6, Guardian p12, Telegraph p8, FT p2)
Benn bandwagon trailed again
– And talking of the Labour leadership the Indie (p7) reviews Ed
Miliband’s competition alighting on Hilary Benn as a possible
contender, except there is no contest...
Clegg cracks a joke –
Although deputy prime minister seems to be in better spirits
cracking a joke about Ed Miliband’s leadership, and also one at the
expense of energy secretary – and his own leadership rival – Chris
Huhne whom he says knows how to get “his points across”, only taken
him a month to catch up with the rest of us (Mirror p4, Sun p2, Guardian p6).
Edited by Mik Sabiers
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