News digest 18 July 2011
The digest starts with Len McCluskey’s
interview in the Guardian where he talks of widening Unite
membership to students and the unemployed and building a real
alternative, before its back to phone hacking while Cameron’s word
is called into question over Bombardier, the euro is wobbling, as
is Osborne, 17.000 soldiers could be for the chop, while the
voluntary sector will fight back, there’s an aviation backlog and
possible problems for the Lloyds sell off and while City bonuses
are back Glasman raises the immigration question again...
Moving the movement forward –
Unite general secretary Len McCluskey sets out his vision in an
interview in the Guardian
(p11) where he outlines plans to widen membership to students and
the unemployed and reach out into communities with a new weekly 50p
membership rate. Len also had some stern words for the Labour
party’s “slavish following of
neo-liberalism” while it was in power and also had
strong words for Ed Miliband regarding the action on 30 June. There
was also a strong warning of the determination of members to take
action due to the government’s intransigence and actions:
“All these [changes] are deeply, deeply ideological and
they not only threaten jobs but the social architecture that holds
our nation together.”
Celebrating peace and justice
– And Len was also one of the key speakers at the annual Tolpuddle
martyrs’ festival. The Morning Star (p4) reports
that more than 10,000 people attended to hear Len praise the
continuing resistance to the austerity measures across Europe and
stress the importance of community spirit and workers uniting to
fight the Con-Dem cuts.
Brooks called in and Stephenson forced
out – Talking of justice the former News International
chief executive Rebekah Brooks was arrested over allegations of
phone hacking and corruption yesterday while Met police
commissioner Sir Paul Stephenson resigned over allegations of an
inappropriate relationship with a News of the World executive.
Speculation that James Murdoch could be next, either to be arrested
or resign, perhaps even both? It will be another interesting day
tomorrow as Brooks and the Murdochs are called before the culture
committee to give evidence on the whole hacking scandal and in
particular the new evidence that has come to light (Mirror p1/4-6, Sun p1/9, Express p4-5, Mail p1/6-7, Times p1/7, Indie p1-8, Guardian p1-8, Telegraph p1/4-7, FT p1/2, Morning Star p3).
The government can back
Bombardier – And on the subject of new evidence the
Mirror (p9) has a leaked
paper that exposes the myth about the Bombardier deal. It shows
there was a clause in the tender document that stated all the terms
could be changed if need be. That blows away prime minister Cameron
and transport secretary Hammond’s claims that they ‘did not have
the flexibility’ to award Bombardier the contract and had to give
it to Germany’s Siemens (Express p11, Morning Star p4).
Euro wobbles – And talking of
Europe the markets are generally in a nervous state as concerns
over the stress tests on banks in the eurozone are compounded by
pressures in the US over the impasse on debt as Obama squares up to
the Republicans over tax rises for the rich as part of as $4
trillion deficit reduction plan. European leaders have been warned
that another default could lead to a crisis comparable to the last
financial maelstrom and European leaders have been told to speak
with a single voice, believe that when I see it (Mirror p9, Sun p2, Express p44, Mail p8/57, Times p34, Indie p, Guardian p23, Telegraph p1/b1, FT p1/5).
Osborne out of luck – But if
you think the UK is ok, the Telegraph (b2) reports that the
Item Club has lowered its forecasts for UK growth this year as a
result of the eurozone crisis and consistently high inflation which
is eroding what little purchasing power the general public had left
while the Guardian’s (p24)
Larry Elliott says that the government’s austerity cuts will come
under much greater scrutiny as growth continues to weaken.
17,000 soldiers to go – And
yet more cuts as the defence secretary looks to the Territorial
Army to make up the future of Britain’s defence signalling a cut of
17,000 troops from the regular army (Mirror p15, Sun p, Express p2, Mail p1/10-11, Guardian p12, Telegraph p2, FT p3, Morning Star p2).
100,000 nurses could go – Is
the finding from a shocking report by the Royal College of Nursing
which mapped out eight possible outcomes for the NHS over the next
decade, fears are that there will be a return to the chronic
shortages of the 1980s (Mirror p19, Times p15, Telegraph p10).
Cancer diagnoses on the rise
– But survival rates double (Sun p6, Express p1, Mail p29, Times p17).
Southern Cross will break up
– The Times (p33)
reports that NHP - which owns 250 of Southern Cross’ homes – will
today announce it is setting up its own care business which will be
run by Chai Patel.
Voluntary sector to rally against Big
Society – The Morning Star (p5) trails
tomorrow’s rally at parliament on the first anniversary of the ‘Big
Society’ as Unite’s voluntary sector workers challenge the Con-Dem
coalition to hear out cuts are hitting communities across the
country (Unite
release).
Invensys to cut fifth of
staff – And it’s not just the public sector and
volunteers, The FT (p20) reports
Invensys has signalled it may have to cut up to 1,000 jobs after
losing out to Bombardier on a contract for signal renewal work on
the London Underground.
Manufacturing pay stays low –
Latest data from the EEF/JAM Recruitment shows the average pay rise
limited to just 2.5 per cent (Indie p32, FT p4).
Aircraft backlog – The
FT (p19) reports that demand from
US carriers is leading to a production backlog at both Airbus and
Boeing, both makers are planning to raise production levels to 40
plans a month, Airbus should hits is target next year while Boeing
will take to 2014.
Virgin boss to step down –
The Times (p37) reports
Stephen Murphy – who has run Virgin for six years – will step down
at the end of the year and be replaced by David Baxby and John
Bayliss who will act as joint chief executives, wonder if they know
what they’re letting themselves in for with dual leaders. The
company is due to undergo a restructuring as it expands into new
markets including the banking sector.
Lloyds branch sell off, off?
– And it looks like Lloyds will have to improve the offer for the
sale of branches after potential investors stated that they expect
better terms, three first round bids are believed to have been
tabled (Times p39,
Telegraph b3, FT p20).
Bonuses are back – And just
in case you thought the City was contrite in the face of the
contagion the Express (p44)
reports that Wall Street investment bank Goldman Sachs is on track
to pay out £10 billion in bonuses to its senior bankers as results
expected tomorrow should show profits of over $1.4 billion.
Send them all back? – And
finally the Telegraph
(p17) has an interview with ‘Blue Labour’ thinker Lord Glasman who
calls for immigration to be frozen and called New Labour
“almost Maoist” in its approach to
modernisation. A senior Labour source said: “Glasman is
a friend and colleague. His views are his own.” let’s
hope it stays that way…
Edited by Mik Sabiers
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