News digest 6 January 2011

Birmingham is back in the news as the local council again worsens the situation in its dispute with the city’s refuse collectors, the real result of cuts is shown at BP while Cameron admits the truth on VAT, poor Clegg is cold shouldered in Oldham, Cadbury is close to shutting Somerdale, there’s some espionage over electric vehicles and Qantas will soon be flying all its A380s again, while there’s a senior shake up at British Airways…

What a load of rubbish – The ongoing row about rubbish piling up in the streets continues with the focus turning on Birmingham where a dispute over changes to workers’ terms and conditions has escalated the disruption. Regional secretary Gerald Coyne is quoted in a number of papers: “Rather than attempting to resolve the dispute this Tory-Lib Dem council seems to be doing everything it possibly can to make things worse. The council has decided to prevent union representatives from attending any meetings, meaning there can be no negotiations.” Two new strike dates for next week have been announced (Mirror p6, Sun p4, Express p9, Telegraph p10, Morning Star p1, Unite release).

Cost cutting calamity – And many of the papers report on the US enquiry into the BP oil spill disaster saying cuts were the cause, are you listening Mr Cameron? (Sun p2, Express p17, Times p3, Guardian p25, Telegraph b1/2, FT p1)

VAT hits poor – Cameron contradicts chancellor Osborne during factory visit where he says the rise will take more out of poorer people’s pay packets, assuming they still have jobs (Mirror p11).

Pay edges up – Private sector pay rises increased by an average of 2.2 per cent in the last three months, up from 2 per cent the previous quarter, however that is still below the current rise in the cost of living which stands at 4.7 per cent, so everyone is getting a pay cut. There are also fears over inflation as oil and food prices rises world-wide. On a better note the number of firms freezing pay in the private sector is now down to just six per cent, the lowest level since 2008, so shame on the stingy six per cent (Mirror p57, Mail p2, Guardian p29, Telegraph b8, FT p2).

Corporate profits boost – And interestingly corporate profits have hit an 18 month high, perhaps a little less for the boardroom and a bit more for the workers that generate the revenues? (Mail p75, Telegraph b2)

Spend it while you can – Quango chief instructs staff to spend spare £1 million. Former head of UK Trade and Investment seems to be off message in austerity Britain, or do the Con-Dems only attack the vulnerable? (Mirror p2, Express p11, Mail p1, Times p11, Guardian p1, Telegraph p1)

Blame for cuts – In an opinion piece in the Times (p24) Ed Miliband takes the Tories to task over the cause of the deficit (saying it was not Labour’s overspending) and also the Con-Dem cure (where’s the growth strategy?).

Clegg cold shouldered – Campaigning at the Oldham by-election saw Clegg struggle with student protestors and a plea for votes, latest poll of polls confirms the 11 per cent standing for the Lib-Dems and Clegg is the most unpopular leader of the third largest party since 1989, ah diddums (Mirror p10, Sun p2, Indie p4, Guardian p4, Telegraph p2, FT p3).

Expenses relaxed – And talking of MPs, the expenses row could kick off again after Cameron backtracked on changes to allow a less demanding approach, yeah that really works (Mirror p12, Sun p2, Express p8, Mail p10, Indie p12, Guardian p8, Telegraph p8, FT p, Morning Star p)

Information changes – But the government also announces that it plans to review the Freedom of Information Act to be more open, secrecy limit is to be cut to 20 years, and more public bodies covered, expect MPs expenses to probably still be redacted (Express p8).

No FoI on carriers – And redacted is exactly what the MoD has done to a request for information on the real cost of the aircraft carriers as it publishes a 500 page report with key passages absent keeping everyone in the dark (Times p16).

Somerdale to shut – And the lights are about to go out at the iconic Cadbury plant as the machines grind to a halt (Mirror p23, Mail p75).

De La Rue dips – Shares down as company loses contacts to supply India’s central bank although the FT (p19) says the company is confronting the Oberthur onslaught (Mail p75).

Lloyds double take – Bank refunds 200,000 customers after a ‘technical error’ saw customers charged twice (Mirror p2, Sun p50, Telegraph p2).

House on credit – And an alarming figure of the country’s indebtedness as the Times (p41) reports that two million people are paying their mortgages by credit card.

Pay later – And industrial giant Invensys announces it is changing its payment deals with suppliers, shifting them all to 60 day terms, so it will be longer waits to get paid for its smaller supplier companies (Telegraph b1).

Electric espionage – Industrial intrigue as Renault suspends three senior executives after an investigation relating to the car company’s flagship electric vehicle (Mail p73, Times p45, FT p17).

More marques – But US car industry is on a high as the Guardian (p28) reports year end sales rise for big three. GM saw a 7.5 per cent increase in sales in December, Ford 6.8 per cent and Chrsyler jumped 16.4 per cent. The FT (p23) also reports that with rising petrol costs in the US manufacturers are looking to widen their range of vehicles with more fuel efficient lines.

Qantas up in the air – And all of the Australian airlines A380s are due to be back in the air by mid January as Rolls-Royce gives the go ahead for flights to resume (Telegraph b2).

Goodbye – And finally the FT (p2) reports that British Airways director of people, Tony McCarthy, has quit the company. He was the lead negotiator in the dispute which has seen the airline nicknamed Brutish Airways over its approach to bullying and intimidation of staff. He will be replaced by BA’s head of legal and government affairs, Maria da Cunha. Other changes could see acting customer director Silla Maizey shift to Gatwick, potentially meaning the airline plans a shake up there, while chief executive Willie Walsh and communications director Julia Simpson will move to the new IAG group, a stone’s throw from the current BA offices at Waterside…

Edited by Mik Sabiers

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