News digest 4 November 2011
The digest opens with the Unison ballot
result, Greece cancels its referendum as the eurozone shakes,
there’s more evidence over how hard women are hit by cuts, there
are restrictions on council house tenants and the rise in benefits
may be cut as Osborne targets the poorest. A banker says sorry
while others have to reapply for their jobs and the high street
empties. Mixed news in the air sees some respite from Monarch, BA
will buy BMI and Ryanair accepts mountain goats as currency while
minister Ed Vaizey is minding the pennies…
Unison votes yes – Unison’s
ballot over changes to public sector pensions for 1.1 million
members closed yesterday with an emphatic yes to action on 30
November. Meetings throughout yesterday afternoon continued to
discuss the latest government ‘offer’ on pensions and to decide on
what course of action to take as a result of the positive strike
ballot. A total of 315,611 Unison members voted in the ballot with
245,358 backing action (77.7 per cent) and just 70,253 against;
turnout was 29 per cent. Unison general secretary Dave Prentis
said: “The decisive yes vote in the ballot reflects the
deep concern that our members have over government proposals for
their pensions. We support the TUC day of action on 30 November,
but will be negotiating right up to then and beyond to get a fair
deal for our members.” Unite’s ballot is ongoing and
will close on Wednesday 16 November (Mirror p6, Sun p2, Express p8, Mail p12-13, Times p13, Indie p9, Guardian p1/8, Telegraph p1/2/29, FT p2, Morning Star p1).
Greek referendum vote
cancelled – The G20 remained dominated by a day of almost
chaotic developments as the planned referendum was cancelled after
the Greek government was told it would receive no funds until after
it agreed to the bail-out package. Greek prime minister George
Papendreou faces a vote of confidence in parliament today and there
may be moves to either a unity government, the exit of Greece from
the eurozone or even from the EU depending on which paper you read.
The new president of the European central bank, Mario Draghi,
attempted to inject some confidence into markets by cutting the
eurozone interest rate by 0.25 per cent to 1.25 per cent, and stock
markets rallied yesterday but the question remains whether the
crisis ends in Athens or will spread across southern Europe
(Mirror p11, Sun p8-9, Express p4-5, Mail p6-7/87, Times p6-9, Indie p1-5, Guardian p1-7, Telegraph p1/4-6, FT p1/6-7, Morning Star p7).
Women hit hardest by austerity
cuts – And as the Greek public faces ever greater
austerity a few of the papers look more closely at the impact of
the cuts on women and have estimated that of chancellor George
Osborne’s £16 billion of cuts, £11 billion have impacted women as
tax credits are cut, Sure Start centres are shut and child benefit
is limited. The Fawcett Society yesterday accused the government of
‘grinding down women’ saying women were being treated
disproportionately and noting that there are now 1.07 million women
unemployed (Mirror p6-7,
Guardian p12, Telegraph p1, Morning Star p5).
Council housing for those in work
only – And no job means no council home if you live in
Southend according to the Telegraph (p12). The Essex
council is looking to limit access to council housing and now says
a fifth of houses will be reserved for people with jobs as part of
its plans to toughen up on benefit claimants.
Benefits to be cut further –
And George Osborne is arguing with deputy prime minister Nick Clegg
over the chancellor’s plans to change long established Whitehall
rules which saw the annual rise in benefits pegged to the September
inflation rate which this year hit 5.2 per cent due to government
failures to stop energy and other price rises and the hike in VAT.
The increase – which would add 50p a day to jobseekers daily
allowance of £9.64 - will cost the treasury an extra £1.8 billion,
but Osborne wants to limit the rise so those with the least get
even less, same old Tories (Sun p2, Express p16, Mail p35, Indie p9, Guardian p25, FT p2).
Concern over voter
registration – And Clegg is also down as viewing proposed
changes to voter registration unfavourably. the Guardian (p20) and Telegraph (p2) note that a report
from a key committee will today say that up to 10 million people
could fall off the electoral roll, with the poor and disadvantaged
most likely to lose their voice under government plans.
St Paul’s camp continues –
Still loud of voice are the protesters at St Paul’s which is
attracting donations of over £1,000 a day and has even set up its
own Tent City university, however the owners of Canary Wharf have
taken out pre-emptive injunctions to stop the spread of protest,
and fences and signs have also sprung up in Docklands and
Broadgate, will the high finance bankers ever learn? (Times p14, Indie p12, Guardian p20, Telegraph p8, FT p1, Morning Star p2/10)
Bob was wrong – Chief
executive of Barclays Bob Diamond has said that banks must accept
responsibility for what went wrong during the financial crisis
admitting they still have a long way to go before restoring public
trust (Mirror p11, Sun p54, Express p21, Mail p19, Times p62, Telegraph b1, FT p1).
Banking staff under stress –
And the Sun (p54) reports
hundreds of middle managers at Lloyds have been told to reapply for
their roles and will find out just before Christmas if they still
have jobs, Lloyds has axed over 25,000 jobs since the height of the
credit crunch and its current boss is off on stress related medical
leave.
National Savings splits from Post
office – And million of savers could be stranded after the
government said that National Savings & Investments can end its
150 year relationship with the network. Ian Tonks, Unite national
officer, said ”This flies in the face of the stated
intention of the coalition government to support the Post Office
and to make its network viable. This decision will only serve to
increase financial exclusion, preventing citizens without access to
the internet from accessing NS&I financial
products.” (Mirror p56, Express p11, Mail p8, Times p61, Unite
release).
High street hit as shoppers cease
spending – Retailers are struggling, especially outside
London, as cash strapped shoppers continue to rein in spending.
Boots saw a 1.2 per cent rise in sales solely down to the VAT rise,
while DFS reported a dip of 2.2 per cent and drinks firm JD
Wetherspoon said trading was flat (Mail p85, Times p63, Indie p66, Guardian p37, Telegraph b4, FT p21).
Unilever profits flat in
Europe – Consumer products giant saw a 0.5 per cent drop
in turnover in western Europe, although total company sales rose by
7.8 per cent to €12.1 billion world-wide driven by demand in Asia
(Sun p55, Express p78, Mail p80, Indie p70, Telegraph b3, FT p22).
BT benefits from broadband –
As people use broadband to watch TV and surf the net BT has seen a
surge of 166,000 customers in the past quarter with half year
revenues of £9.7 billion and profits rising by 3 per cent to £2.93
billion (Express p78,
Mail p84, Times p58, Indie p66, Guardian p37, FT p22).
Invensys gains from train
orders – Engineering firm unveils three new rail contracts
worth £615 million (Mail
p86, Times p64,
FT p21).
Monarch lifeline - From
trains to planes and Monarch Airlines has slumped to £45 million
loss because of high fuel prices but its Swiss owners will pump £75
million into the business (Mirror p56, Sun p55, Times p66).
Talks continue at Thomas Cook
- Further talks will be held between Thomas Cook and Unite’s
national officials in Manchester next Wednesday 9 November over the
company’s proposals to make 498 cabin crew redundant (East Anglian Daily Times, Unite
release).
IAG to buy BMI - Lufthansa to
sell BMI to BA owner, aim is to compete the deal by April 2012
subject to regulatory approval (Express p79, Indie p70).
Aer Lingus rises above
turbulence – Irish flag carrier posted a rise in third
quarter profits of 19.4 per cent to £81.6 million having gained
from short haul demand to the UK, Germany and France. The airline
has also called for key shareholders the Irish government and
Ryanair to coordinate the sale of their combined share in the
airline which would give the carrier a better market valuation and
remove uncertainty (Mail
p86, FT p20).
Ryanair launches new services
– And talking of Ryanair the Telegraph (b1) reports the
company’s chief executive chose yesterday as the day to launch the
airline’s new services to, wait for it, Greece. Asked if passengers
could book in drachmas Michael O’Leary answered: “We
take any currency, including mountain goats.” Dread
to fear what the ‘extra’ currency exchange fees Ryanair will levy
for conversions…
No service to Cuba – And
sadly still barred from travelling back to his home country, the
Morning Star (p9)
reports on the latest on ‘freed’ Miami 5 prisoner Rene Gonzalez who
still cannot see his family while he is on parole for the next
three years…
Targeting Iran – And a number
of the papers looks at the likelihood of a new ‘intervention’ in
the Middle East as the US looks at possible attacks on nuclear
facilities in Iran, if that goes ahead the eurozone crisis will be
the least of our worries (Mail p4, Times p41, Indie p36, Guardian p28).
Penny claim – And finally and
seemingly worried about the least of things the Mirror (p19) reports on the latest
expenses claims from MPs; perhaps the most – or least – significant
claim is by culture minister Ed Vaizey who claimed 8p expenses for
a 0.2 mile car journey in his constituency, will they ever
learn...
Edited by Mik Sabiers
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