News digest 8 August 2011
The digest starts with riots on the
streets of London and potential panic in the markets, but Osborne
says he’s right even though his cuts are only just starting to
bite, the sum that charities will lose is highlighted, while the
NHS is praised for its efficiency, before the Con-Dem changes hit.
PFI is challenged as is the government’s rail policy (or lack of
one) and the coalition seems to be attacking women yet again before
its back to greedy bosses, pension robbers and John
Prescott.
London’s
burning – With questions raised over the shooting of a
young man last week – and whether he actually fired a weapon - a
gathering of 120 protestors exploded into violence in Tottenham
over the weekend as rioting returned to London’s streets. An
estimated £100 million worth of damage has been caused as the
protest turned into an excuse for looting with shops and homes set
on fire while the police fought running battles with rioters. 26
police officers were injured and there were 55 arrests, sadly
violence spread to other areas last night with Enfield and Brixton
both seeing rioting; thousands of riot police remain on standby and
while there was an impassioned plea for calm from Tottenham MP
David Lammy, the government put up Lib Dem equalities minister
Lynne Featherstone to deal with the fall out (Mirror p1-7, Sun p1/4-9, Express p2-3, Mail p1/4-7, Times p1/4-6, Indie p1-5, Guardian p1-7, Telegraph p1-5, FT p1/7, Morning Star p1-2).
On the edge of the abyss? –
The eurozone faces one of its most challenging weeks as the focus
shifts from the US to Europe and whether the ECB will intervene in
the markets to invest in Italian bonds. Most of the papers report
on the economic rollercoaster but markets stabilised on Monday
after the ECB started to spend billions to avert a financial
meltdown. The main concern is that none of Europe’s leaders has a
concrete idea or plan for the future so the contagion may build
again. On the US side Obama’s presidential re-election hopes could
be hit unless the economy starts to turn (Mirror p14, Sun p1/12-13, Express p5/44, Mail p10-11, Times p1/10-11, Indie p1/6-7, Guardian p1/8-9, Telegraph p1/b1, FT p1-4, Morning Star p9).
Vindicated? Osborne
says “I’m right” – And as the fallout over the downgrade
of the US AAA credit rating to AA+ continues UK chancellor George
Osborne argues in the Telegraph (p18) that the UK shows
that the cuts work, while also stating that he will introduce a
major push in the autumn to kick-start growth.
Empty coffers for charities –
And the impact of cuts on charities is highlighted by a report
published by the National Council for Voluntary Organisations which
shows that charities are facing funding cuts of £2.8 billion over
the next five years. The first authoritative figure for cuts to the
voluntary sector are estimated at some £911 million a year
(Mirror p14, FT p7).
We won’t be cowed – And with
cuts to public services Unite national officer Peter Allenson
writes on
LabourList that good quality public services depend on the
commitment of staff, challenging comments from David Cameron and
Oliver Letwin which said that public servants need
“discipline and fear”.
Axe the equality commission?
- It seems the government likes wielding the axe as it is
considering a report from think tank Civitas which criticises the
Equality and Human Rights Commission and argues it costs millions
of pounds to run, but adds little of value (Sun p2, Express p1, Mail p19).
Run efficiently – The
Guardian (p11) reports
that a study published by the Royal Society of Medicine has shown
that the NHS is one of the most cost-effective health systems in
the developed world, and not only was the UK system – which saw
health spending hit a record 9.3 per cent of GDP under Labour –
cheaper than Germany (10.7 per cent) or the US (15 per cent), but
it also saved more lives.
Run inefficiently – The
FT (p1/9) reports that PFI
projects have cost the taxpayer an extra £20 billion in added
interest - equivalent to more than 40 new hospitals – and that
lawyers and consultants have earned a minimum of £2.8 billion in
fees. Education secretary Michael Gove recently announced £2
billion of deals for up to 300 schools and overall the coalition
with chancellor George Osborne – who called PFI as totally
discredited in opposition – has agreed 34 new PFI contracts since
coming to power.
In work – Talking of new
contacts the Telegraph
(b1) reports the process to recruit 1,000 workers at the ex-Corus
steel plant in Redcar will start this week, up to 10,000 people are
expected to apply to work at the refounded Teesside Cast Products’
plant which was mothballed in February 2010 with the loss of 1,600
jobs.
Out of work – The Morning Star (p5) reports
that public spending cuts and soaring childcare costs are pricing
mothers out of work according to the IPPR. The think tank
challenged government claims that its welfare reforms would ‘make
work pay’ after noting that despite the dip in unemployment the
total of jobless women has risen by 42,000 and a total of 260,000
women have been out of work for over a year.
Take away maternity pay – The
Mirror (p14) and FT (p8) also report that new government
proposals could see maternity pay cut from 26 to 18 weeks under the
auspices of ‘flexibility’, is this a first step in implementing
Steve Hilton’s blue sky manifesto?
Overcharged – Talking of blue
skies and the Guardian
(p12) reports that the European Commission is to investigate the
add on fees charged by budget airlines.
Reopen the rail deal – And
the Mirror (p8/10) continues
to show strong support for the Bombardier workers having uncovered
that ministers were stringing the company along after they had
already awarded preferred bidder status to Siemens, the paper’s
leader comment says it all: “If there was the political
will, an economic way would be found to save Britain’s last train
building factory.”
Fears hits Rolls Royce – And
a number of papers also report on more possible worries for Derby
as local engine maker Rolls-Royce has admitted it is considering
siting a new aircraft engine testing work in Germany or the US
instead of in Derby; time for a proper manufacturing strategy from
the government (Mirror p8,
Mail p2, Telegraph b3, Morning Star p2).
Is it goodbye to Germany? –
The Guardian (p21) reports
that some of Germany’s leading industrial concerns may move
elsewhere in search of cheaper energy, chemical giant Bayer has
said the phasing out of nuclear energy could raise its production
costs as well as concerns over security of energy supply.
Grab what you can – As the
Times (p31) reports
that the care homes chief at Southern Cross is in line for a
£494.500 severance pay out, a number of papers report that even
though top bosses are set to retire on pensions that are 30 times
the average, they are still looking to phase out final salary
schemes for ordinary workers, 15 million workers in the private
sector are facing retirement with no pension at all (Sun p2, Mail p17, Times p35, FT p7, Morning Star p4).
Howe back – Speaking of lost
pensions the Telegraph
(b2) reports that the former MG Rover chief executive Kevin Howe is
back in business as a director a firm called the Exit Partnership
based in Leigh on Sea, Essex.
Time to reduce the union
link? – And finally former deputy prime minister John
Prescott has backed the Miliband plans to weaken union power in the
Labour party; absolutely nothing to do with sour grapes for having
been defeated for the role of treasurer (Guardian p11, Telegraph p6, FT p7, Morning Star p5).
Edited by Mik
Sabiers
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