News digest 19 May 2011

It’s a packed digest today as Clarke is called on to resign while the head of the IMF does, a chasm on the NHS opens up, while the education, energy and home secretary are all in the headlines for the wrong reasons, there’s a split at the MPC, while unemployment figures show mixed results. Strikes are at an 80-year low, Lloyds bonuses are blasted by shareholders, a cream boss is a clot, while Clegg’s looking for more spin…

Clarke controversy – Justice secretary Ken Clarke was forced to apologise for remarks he made about rape when discussing his plans to cut offender sentences for early guilty pleas. A host of papers take him to task for the comments, and Labour leader Ed Miliband called for his sacking at yesterday’s PMQs. A number of papers call for him to go and he will be under pressure when he appears on tonight’s BBC Question Time which comes from Wormwood Scrubs prison (Mirror p7, Sun p1/4-5, Express p2, Mail p10-11, Times p3, Indie p1, Guardian p1, Telegraph p1, FT p2, Morning Star p2).

DSK resigns – The head of the IMF stands down as more allegations appear across most papers, the French fear there may have been a plot to discredit him ahead of the presidential elections, while his legal team plans to reapply for bail. The story is now starting to focus on his successor, Cameron vetoed Brown so French finance minister Christine Lagarde is seen as a potential head (Sun p18, Express p17, Mail p7, Times p1/15, Indie p19, Guardian p23, Telegraph b3-5, FT p6, Morning Star p6).

Lawrence retrial – After a landmark legal judgement yesterday Gary Dobson and David Norris will face trail for the murder of 18 year old student Stephen Lawrence after new and sufficiently reliable evidence into the race-hate killing has been uncovered (Mirror p5, Sun p9, Express p19, Mail p1, Times p4-5, Indie p4-5, Guardian p1, Telegraph p9, FT p4, Morning Star p3).

Huhne up before the beak? – And energy secretary Chris Huhne is to talk to the police about the points affair next week, the old mantra of becoming the story is raising its head, is the problem that Cameron and Clegg don’t have any good Lib Dem MPs that could slip into the energy driving seat (Mirror p4, Sun p5, Express p11, Mail p6, Times p11, Indie p8, Guardian p1, Telegraph p1, FT p2).

Huhne on nuclear safety – The Fukushima disaster spurs scrutiny of plans for new nuclear power stations, but lessons to be learned are listed. Kevin Coyne, Unite national officer for energy, said: "Nuclear power workers' number one priority is safety ... the government must now publish its energy national policy statements without delay and get on with the job of creating the right environment for creating a low carbon energy infrastructure fit for the 21st Century. This includes commissioning the first new build nuclear power station for a generation at Hinkley Point." (Mirror p2, FT p4, Morning Star p5, Unite release)

Coalition chasm – And the government’s health reforms come back on the agenda as Clegg tries to differentiate himself challenging the plans for competition, Unite national officer for health Rachael Maskell calls for the bill to be scrapped, adding: ”Nick Clegg’s new found assertiveness against the privatisation of the NHS is to be welcomed – but uncomfortably for the coalition it now exposes a chasm as wide as the Grand Canyon over the fate of the bill in particular and the future of the NHS between the coalition partners.”  (Sun p2, Mail p8, Guardian p1/4, FT p2, Morning Star p3, Unite release)

Kick a cop – Police jeer home secretary Theresa May over her refusal to back down over pay cuts, after her speech was met with police exercising the right to be silent – she got no applause – she was repeatedly challenged and also opposed the Police Federation’s demands for a royal commission on policing (Express p15, Mail p2, Times p10, Indie p8, Guardian p8, Telegraph p10).

Must do better – And Labour shadow education secretary Andy Burnham reviews his counterpart’s first year in the job in the Times (p41), he ends up agreeing with the professionals, 72 per cent think Gove is doing a bad job, time for a reshuffle?

MPC split – And with concerns over inflation a number of papers report that a split is opening up in the monetary policy committee over raising interest rates, there are now three firm dissenters that want an immediate rise considering rising inflation more dangerous than rising unemployment (Mirror p58, Times p42, Indie p35).

Unemployment dips – Talking of which UK unemployment falls 36,000 to 2.46 million but the change masks more dangerous long term trends as the number of people unemployed for over 12 months increased by 20,000 to 850,000, the highest number since January 1997, and the number of people claiming jobseeker's allowance rose by 12,400 in April to 1.47 million. In addition 75 per cent of the 12,400 extra people claiming jobseeker's allowance were women, the highest figure since October 1996 and the number of male claimants also rose for the first time since January. Regional variations saw Wales (down 10,000), and the South East (down 17,000) gain while London (up 6,000) and the north east (up 4,000) were hit the hardest (Mirror p10, Times p42, Indie p35, Guardian p1, Telegraph b4, FT p4, Morning Star p3).

Strikes at 80 year low – And despite calls for more restrictions on the right to strike the Mail (p67) reports that strikes are at an 80 year low, with 145,000 working days lost to industrial action in the year to March 2011.

Swedish sweatshops? – But don’t try and strike at IKEA, the Morning Star (p8-9) has a feature on the less savoury practices of the iconic firm in the US, including people put on report for going to the rest room.

Pay cut – Latest figures show that all workers will face a three per cent pay cut in real terms as inflation remains high and employers have the power in wage negotiations (Guardian p24, Telegraph b2).

PCS votes yes for action - Civil servants have voted to ballot for strike action in protest against changes to their pay and pensions. The decision raises the prospect of 500,000 public servants striking in June, bringing schools, universities, courts and Whitehall to a standstill (Mirror p2, Express p29, Times p45, Guardian p14, Telegraph p2, FT p2, Morning Star p2).

Lloyds bonuses blasted – Angry shareholders at yesterday’s AGM attacked the Lloyds board for “gross overpayments” to those responsible for the crisis and also singled out the excesses paid to former boss Eric Daniels who was at the helm during the financial crisis and the PPI insurance trick (Mirror p48, Sun p46, Express p64, Mail p65, Times p39, Indie p31, Guardian p26, Telegraph b4, FT p17).

RBS banker in the clear – The Sun (p46) also reports on a banker was allowed to resign with a clear record after even though he admitting forging customer signatures, he now works for Santander, is there nothing bankers can’t get away with… well the FT (p1) says the FSA is planning a bonus crackdown on banks to make sure that reserves are not raided.

Slump causes tears at Mothercare – On the high street the baby-gear retailer has announced it will close over a quarter of its stores after profits collapsed to £8.8 million and sales fell four per cent; 500 jobs will go (Mirror p26, Sun p46, Express p65, Mail p65, Times p45, Indie p33, Guardian p25, Telegraph b1, FT p20).

Olympic route outlined – With all the high street closures there will probably be plenty of space for people to watch the Olympic torch on its tour around the country (Mirror p23, Sun p20, Express p28, Times p22, Indie p18, Guardian p15).

Bye bye Ronald? – And coulrophobes everywhere could be breathing a sigh of relief if McDonald’s takes the advice of campaign group Corporate Accountability International which has called on the fast food chain to drop its happy meals and trademark clown for the good of the nation’s health (Sun p32, Indie p25).

Clot boss – Head of clotted cream firm Andrew Rodda was blasted yesterday after he complained that his workers – who are paid just above the minimum wage – did not deserve a pay rise but just should be taught to manage their money better. Unite’s Jennie Formby said: “The Victorian workhouse attitude seems to be alive and well ... Mr Rodda should try living on the minimum wage and see how he manages. He has no business patronising his staff in order to pay them a pittance.” (Sun p20, Express p39)

Probably in want of a better pay rise - Carlsberg UK lorry drivers reject a 2.75 per cent pay rise (Road Transport).

Flight tax trashes tourism – From food to flights and a report commissioned by budget airlines including easyJet says that 77,000 UK jobs could be affected by the hike in air duty blowing a £475 million hole in the tourist trade (Mirror p48, Sun p46, Mail p66, Guardian p26).

Airbus aid ok? – And the ongoing spat between Airbus and Boeing over the WTO and state aid looks to be coming to a head after both sides claimed they had won out of the ruling that said Airbus benefited from some illegal subsidies, but not for the A380 superjumbo (Express p64, FT p6).

Loads more spin – And finally the Telegraph (p10) reports that the deputy prime minister’s office is looking for six more spin doctors to try and help turn around Clegg’s image, he wants to increase the number to 11, but no matter how hard you spin I expect that’s a lost cause…

Edited by Mik Sabiers

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