News digest 8 September 2011

The digest opens with strong coverage of the Bombardier lobby across most of the papers. The NHS change continues while the 50p tax rate stays for now. There’s a pensions’ shortfall while the high street is emptying, business wants banking regulation and the eurozone could get stricter on members and while there’s a threat of strike action at Apache, BA and Aer Lingus may merge before a series of challenges culminate in an MP struggling to pick up the phone…

No change on Bombardier contract – Even though a delegation of workers from Bombardier came down from Derby to London to argue the case for retaining UK rail manufacturing the government has given up on UK supply and stated that the decision to select Germany's Siemens for a £1.4 billion train contract, rather than Bombardier in the UK, will not be reviewed or put out to tender again. The chairman of Bombardier UK, Colin Walton, told MPs on the select committee that firm is "struggling to understand" the government's decision, saying it had been based on "very narrow" criteria while transport secretary Philip Hammond said the government would be looking at ways to try to retain skills in the train building industry in the UK but Unite assistant general secretary Diana Holland countered that over 800 supplier sites would be affected, half of which had either cut jobs or planned to do so as a result of the government's decision to go with Siemens and said: "We are deeply, deeply concerned about a contract awarded on the basis of a credit rating rather than an ability to manufacture trains." (Mirror p6-7, Sun p28, Express p4, Times p46, Indie p34, Guardian p26, Telegraph b2, FT p4, Morning Star p1, BBC News, Unite release)

All change for the NHS – Sadly the third reading of the health and social care bill was passed by the Con-Dem coalition last night – although the Dorries' abortion amendment was defeated. A couple of papers note that GPs are being told to ration the number of patients being sent for scans while the cost of the reorganisation is also continuing to rise. Cameron seems to have misled the commons once again by claiming he had the backing of NHS staff like the RCN and Royal College of GPS – who denied the charge - the gradual death of the NHS as we know it continues when the bill moves to the Lords next month (Mirror p5, Mail p1/10, Times p5, Indie p12, Guardian p6-7, Telegraph p2, FT p4, Morning Star p3, Unite release).

No change to 50p rate, for now – Cameron has apparently indicated that the 50p rate will stay in the short term as the coalition continues to clash over whether the government should prioritise a tax cut for the richest one per cent of the country (Mirror p11, Express p1, Mail p4, Times p23, Indie p2, Guardian p2, Telegraph p2, FT p3, Morning Star p3).

Pensions’ shortfall – Millions of ordinary people have cut the amount of cash they pay towards their pensions due to the squeeze as the TUC released data that showed employee contributions to pensions fell by 10 per cent to £18.7 billion in 2009/10 (Mirror p52, Mail p20, Telegraph p1, FT p4).

Courts could dock benefits – The Guardian (p1) leads with the news that as part of the response to the riots the coalition is considering giving courts the power to dock benefits from convicted criminals to show that ‘state privileges’ should be earned, no mention of whether you get a rebate if you are an upstanding citizen.

Slum UK – And the Indie (p1) splashes with the news that UK housing is now among the worst in Europe costing around £7 billion a year by adding pressure to the NHS and other public services.

1 in 7 shops empty – Could the end of the UK high street be on the way? One in seven shops are lying empty and 50,000 more shops are expected to close as cash-hit families curb spending. A report from the Local Data Company says the 10 worst affected places are in the north and Midlands and the shift to online purchasing has also added to the pressure (Mirror p25, Sun p6, Mail p7, Indie p36, Guardian p15, FT p6).

Call for quantitative easing – And as the threat of the double dip rises the Institute of Directors calls for £50 billion of new money to be pumped into the economy to get the banks to lend; oddly the banks have already had £200 billion and don’t seem to be lending that freely (Mirror p11, Sun p42, Mail p65, Guardian p25, Telegraph b1, FT p1).

Business backs call for regulation – As Unite revealed figures showing 150,000 ordinary finance workers have lost the jobs as a result of the banking crisis the union was joined by small business owners in its call for a firm government stance on banking reform (Morning Star p3, Unite release).

Regulated future for banking - The FT (p11) starts a new series looking into banks and regulation, risk and the global crisis, rather apt with the Vickers report next week and developments in the eurozone.

Stricter future for euro members – Financial markets breathed a sigh of relief as Germany’s top court gave its backing to the planned debt rescue policies to try and stem the financial firestorm, stock markets across Europe soared and the Dutch prime minister called for a new budget tsar with powers to dictate spending and taxation policy in eurozone countries (Express p51, Indie p22, Guardian p25, Telegraph b1, FT p1).

Exit Europe? – Prime minister David Cameron is also coming under greater pressure from his right wing – some of whom are they are also trying to link up with Eurosceptic Labour MPs – as they call on him to hold an ‘in or out’ referendum on Britain’s continued membership of the EU (Express p15, Mail p2, Times p6).

German industry advances as UK declines – However maybe they could learn from the EU as Germany’s industrial output rose by 4 per cent in July in contrast to the UK which dropped by 0.2 per cent, must be all those government contracts (Times p48, Indie p34, Telegraph b2).

Apache strike threat – Back in the UK and civilian engineers working on Apache attack helicopters have threatened to strike over their continued dispute over pay differentials which means that many are about £3,000-a-year worse off then colleagues employed at a sister site (Mirror p15, Morning Star p4, Unite release).

Royal Anti Freeze - The  Sun (p20) reports that RAF ground crew at the Mount Pleasant base in the Falklands Islands made a £1.5 million error after contaminating aviation fuel with anti freeze rather than the real chemical that stops fuel freezing in sub zero temperatures.

BA and Aer Lingus to merge? – Possible merger looks more likely as the Irish government indicated it would consider selling its stake in the national flag carrier and Ryan air surprised analysts saying that it was also open to selling its own 29.8 per cent holding (Times p43, Telegraph b3, FT p20).

Ex BP bosses windfall – Tony Hayward who resigned after the fall out of the Deepwater Horizon blowout has landed back on his feet with a £14 million windfall as his investment firm Vallares joined forces with Turkey’s Genel (Sun p42, Express p51, Indie p33, Guardian p26).

Saab goes back into bankruptcy protection – Not so good news for the Swedish carmaker which has filed papers to go into a three month court-administered reorganisation (FT p22, Morning Star p7).

Glencore challenged over workplace deaths – And bad news for workers as the mining firm after the company’s latest annual report shows that dozens of people have died working for the company and that the level of deaths – 56 between 2008 and 2010 - is higher than the other leading players in the industry (Times p43, Guardian p26, FT p19).

Guardian challenged over hackgate – Fears over press freedom are raised after it was revealed that the police questioned Guardian journalist Amelia Hill under caution over her contact with police sources (Sun p2, Mail p12, Times p8, Guardian p1, Telegraph p4, FT p2, Morning Star p5).

Cameron challenged over who’s the boss – Cheeky question from Nadine Dorries about who is in charge in the coalition elicits condescending answer from Cameron at PMQs (Sun p2, FT p2).

MP challenged to answer phone – Veteran Middlesbrough Labour MP, Sir Stuart Bell, is featured in many papers as possibly being the country’s laziest MP after one local reporter made more than 100 calls to him and never received a reply. The MP has admitted that he has not held a surgery in 14 years, claims £83,000 in staff costs (including paying his wife £35,000), but says he has no seen one single recorded call from the reporter, maybe he should look a bit harder (Mirror p15, Sun p2, Mail p19, Indie p1/11, Telegraph p2).

Edited by Mik Sabiers

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