NEW YORK, SAME OLD STORY

Politicians throughout the world at election time project the idea that they can solve the problems of capitalism and trust by the next election the promises will have been forgotten or they can blame some other cause for the problem. "It was a statement born of confidence and boldness. Mayor Michael R Bloomberg declared in 2004 that he would do what no mayor of his era had done: reduce the city’s homeless population by two-thirds by the time he left office. ....But despite a number of initiatives, including computer tracking and prevention programs, the population of homeless families, after dipping in 2005, reached its highest point in two decades in May." (New York Times, 22 July) RD

LOADS OF MONEY

The Wall Street Journal employ Robert Frank to record the comings and goings of the super-rich, so he has decided to publish his findings in his book Richistan; A Journey through the 21st Wealth Boom and the Lives of the New Rich. This was reviewed by Tim Adams who came up with a couple of statistics that should interest all workers. "There are many statistics that attach themselves to Richistan. These are two telling ones; Wall Street's five biggest firms paid out $36 billion in bonuses in 2006; and while in the Seventies the average American chief executive typically took home 40 times the wage of his average employee, he now pockets 170 times that of his typical minion." (Observer, 22 July) As a "typical minion" how do you feel about that? RD

Charity and Philanthropy

The cash-for-honours affair and Tom Hunter's philanthropy merely prove the rich call the shots in an unequal society, says Joan Smith in the Independent

Peter Mandelson remarked nine years ago that Labour ministers were "intensely relaxed about people getting filthy rich"

During Blair's premiership the wealth of Britain's top 1,000 quadrupled.

The Scottish self-made retail billionaire Sir Tom Hunter, promised to give away at least £1bn to good causes before he dies. Hunter has joined an elite club of people who have made so much money that they are able to give away sums that most of us cannot even visualise ...Hunter is usually mentioned in the same breath as the hedge fund investor Chris Hohn, who has promised £230m to a children's charity run by his wife, and the financial trader Peter Cruddas, who is giving £100m to good causes which include The Prince's Trust and Great Ormond Street children's hospital.

Such donations are usually regarded as non-political, a harmless exercise in what's called "soft" power;...Yet a moment's consideration is enough to demonstrate the lack of democratic oversight at most private foundations, and while wealthy people may choose to support causes of which we all approve,.. they may just as easily make decisions which appear capricious or downright perverse. Some wealthy evangelical businessmen withhold money from organisations that support gay and women's rights...Despite the generosity of men such as Hunter, there is a widespread sense that there is something wrong with a society in which growing numbers of wealthy people are able to use their money to fund pet causes – or keep it for themselves... the fact remains that for every billionaire who decides to do something to combat Aids or malaria, there is another who prefers to buy yachts, wives or football clubs.

...there is compelling evidence not just that we are entering a new age of oligarchy, reminiscent of the US in the 19th century, but that it is corroding public trust in the political process. The names of the men who literally built America – Carnegie, Frick, Vanderbilt, Rockefeller – are familiar to this day; in a striking parallel with contemporary Britain, some of these tycoons had a highly developed sense of social responsibility and gave most of their money away. The Scottish-American steel tycoon Andrew Carnegie, who was originally from Dunfermline, gave away the equivalent of $4.3bn in his lifetime... There could hardly be a greater contrast than the railroad pioneer Cornelius Vanderbilt, who has been described as the second wealthiest person in American history, with a fortune estimated at the time of his death in 1877 at more than $100m (a staggering $143bn in today's money)... His son William got the bulk of his fortune, with next to nothing going to good causes.

The moral is that wealthy men are no more likely to be generous than poor ones; even such contemporary philanthropists as the Irish rock band U2, whose lead singer Bono never misses an opportunity to lecture political leaders about increasing aid to Africa, were revealed last year to have moved their financial affairs to the Netherlands in order to halve their tax bill. Private philanthropy is unreliable, in other words, and our increasing reliance on wealthy entrepreneurs to fund everything from clean water in the developing world to British political parties is a symptom of profound malaise.

OUTDATED MARXISM?

One of the oppositions to Marxism is that it is so out-dated, it is so 19th century. So let us get up-to-date. "The Royal College of Midwives (RCM) is to ballot its members on industrial action over pay, the first time in its 125-year history that such a move has been made. ..The decision to ballot 23,000 midwives, taken at an RCM council meeting last night, follows the government's announcement that midwives and nurses would get a 2.5% pay rise in two stages, amounting to 1.9% across the year." (Guardian, 20 July) It just shows you how outdated Marxism is, after all in 1848 in the Communist Manifesto Marx and Engels wrote - "The bourgeoisie has stripped of its halo every occupation hitherto honoured and looked up to with reverend awe. It has converted the physician, the lawyer, the priest, the poet, the man of science, into its paid wage-labourer." How outdated, they never mentioned midwives did they?RD

CAPITALISM AND SPORT

We are all well aware that the Tour de France cycling race has been marred by drugs, even leading to death. Football clubs have been investigated for illegal "bungs" and the once pristine sport of cricket has had its bribery and corruption scandals. Now we find that golf too has been invaded by drug cheats. "Gary Player, one of the legends of golf, has marked the start of this year's Open Championship at Carnoustie by declaring that performance-enhancing drugs are rife among world players. The South African who won three Opens, the first of them at Carnoustie 38 years ago, said he knows several top golfers are developing their physiques by taking human-growth hormones, steroids and creatine, though only the first two are prohibited by international sports bodies." (Herald, 19 July) It seems that everything that capitalism touches it corrupts in its insatiable drive for wealth. RD

DOMESTIC BLISS?

It is the subject of romantic novels and love songs - boy meets girl, wedding bells and domestic bliss, but the reality often proves to be otherwise inside the stressful society that is modern capitalism. "The conviction rate in domestic violence cases has risen dramatically in four years, the Crown Prosecution Service said. A snapshot view found that in 2003 46 per cent of cases ended in conviction. By 2006 this had risen to 66 per cent. In 2003 the CPS dropped 17 per cent of cases. By 2006 this had fallen to 11 per cent. More than 57,000 cases were charged for prosecution in 2006/7." (Times, 19 July) RD

health and the worker

Deprivation is fuelling ill health in Scotland, according to new research. A study of 25,000 men and women across the country found that heart disease was more prevalent in areas with poorer communities. The research found poor health and lifestyle among people with low levels of education, middle-aged men, and women out of work or in low-skilled jobs.
The report by the Medical Research Council (MRC) said that if social and economic conditions improved, many health problems would disappear.

"Glasgow's health is likely to continue to be worse than the rest of Scotland unless there is a considerable change in the circumstances of our poorer communities." Director Professor Carol Tannahill said

Dr Linsay Gray, of the MRC said "... improving Glasgow's health remains closely linked with tackling the problems associated with deprivation and poverty."

Socialist Courier concur that it is change - but revolutionary change - that will be required to improve the health - both physical and mental - of the working man and woman .

Anyone for Tennis ?- The physical price of fame

A study of 33 young elite players aged between 16 and 23 at a national tennis centre, who represent Britain's best hope for a future Wimbledon winner, found 28 of them had damaged spines. Nine players had stress fractures. Some of the damage was irreparable.

Far from improving fitness, the game could leave them seriously damaged. The demands of modern tennis are so extreme and the competition so intense that young players in training face a high risk of fractures, slipped discs and damaged joints, researchers for the Lawn Tennis Association say. The increased speed and types of strokes used in tennis all boost wear and tear on the lower back.

"...These players have backs like 50-year-olds, not 16-year-olds." - David Connel, of the Royal National Orthopaedic Hospital

The Loony Right

The Conservatives are fighting a claim that a businessman did not know what he was doing when he left the party £8.3 million in his will.

London's High Court heard Branislav Kostic was "deluded and insane" when he willed his money in the 1980s.

He made the will after saying Margaret Thatcher was "the greatest leader of the free world in history" and that she would save the world from the "satanic monsters and freaks".

His son says his father lacked "testamentary capacity" because of his delusional and paranoid mental illness.

Clare Montgomery QC said the Conservatives "only benefited because the testator became mentally ill".

Mr Simmonds , QC for the Conservative Prty , said that while it was accepted that Mr Kostic had a delusional disorder it was not accepted that this made him incapable of making a proper will.

I think Socialist Courier readers will concur with all who say that this individual must have indeed been crazy to believe and trust in Magaret Thatcher and the Conservative Party .

JESUS AND HARRY POTTER

"The Church of England is publishing a guide advising youth workers how to use Harry Potter to spread the Christian message. ... the Rt Rev John Pritchard, the Bishop of Oxford, said yesterday: "Jesus used storytelling to engage and challenge his listeners ..." Owen Smith, its 24-year-old author and a youth worker at St Margaret's Church in Rainham, Kent, said: "To say, as some have, that these books draw younger readers towards the occult seems to both malign JK Rowling and to vastly underestimate the ability of children to separate the real from the imaginary." (Times, 18 July) A good point, Mr Smith; what child-like mind having read about healing the lame, making the blind see, bringing the dead back to life and so on could imagine it had anything to do with reality? RD

BLIND INDIFFERENCE

"A pensioner aged 84 is suing an NHS trust over its refusal to pay for drugs to save his sight in the first such case to be backed by Britain's leading charity for the blind. Dennis Devier of Henley-on-Thames has been told by Oxfordshire Primary Care Trust that he cannot have drugs to treat his macular degeneration, the commonest cause of sight loss, unless he can prove he is an " exceptional case". Mr Devier, a war veteran, is the main carer for his disabled wife and is already blind in one eye. He also has diabetes and Paget's disease, which affects the bones. ... The charity said Oxfordshire PCT claimed to consider each case on its merits but had not funded drug treatment for a single patient, despite having more than 70 in need of it." (Independent, 9 July) Why such cruelty towards an old man who will go blind in three months? Could the cost of treatment £9,000 a year for two years have anything to do with it?
RD

EUROPEAN HUNGER

"It's 10 o'clock in the morning and Shkelten Daljani, a rambunctious boy of 14 in a tattered "Route 66" T-shirt, should be in school. But if he wants to eat, he has to help his father collect scrap metal to sell. The previous day, he says, there was no metal and no food."If we have food, we eat," Shkelten says with a shrug. "If we don't, we don't."Shkelten and his family live on the outskirts of Albania's capital, Tirana, in the neighborhood of Breju Lumi, which means riverside, though the only nearby water is a dry streambed cluttered with trash. The houses are a collection of concrete blocks and tin shacks without electricity, running water, or sanitation. The streets are little more than dirt lanes.Shkelten's situation – inadequate housing and sanitation, poor medical care, and occasional hunger – is little different from that of millions of children throughout Africa, Asia, and Latin America. But his home is in the heart of Europe. .."We used to say that everybody was equally poor," says Arlinda Ymeraj, a social-policy officer with the UN Children's Fund in Albania. "Now, if you compare, there are big disparities. A few people have gotten very rich, but more have stayed poor or gotten poorer." ..Despite recent economic growth, a third of Albania's children live on less than $2 a day. Ms. Ymeraj says that it is difficult to compare the situation of children today with that during communist times, but that life has deteriorated for the poorest in a number of concrete ways." (The Chritian Science Monitor, 10 July) No matter where you look in the world today Ms Ymeraj's statement "a few people have got rich but more have stayed poor or gotten poorer" applies. RD

THE WASTEFUL SOCIETY

"In proposals which will be hotly disputed in wine-producing countries from France to Bulgaria, Brussels wants to pay producers of unsaleable wines to "grub up" their old vines. And from 2013, national restrictions on the planting of different varieties of vines would be lifted to encourage "competitive" growers to shift to types of wine more in demand from consumers..... Part of the EU budget for supporting the wine industry would be shifted to a campaign to promote European wines on the international market. The distillation of surplus wine into industrial alcohol or disinfectants - which costs €500 million (£340m) a year - would end from 2009. The European Union's annual "wine lake" of unsold wines is more than 13 million hectolitres - equivalent to about 1.7 billion standard-size bottles." (The Independent, 5 July) This gigantic surplus wine lake is a terrible problem inside capitalism, of course inside socialism we would just drink it. RD

More on class divisions

The gap between rich and poor in the UK is as wide as it has been for forty years, the Joseph Rowntree Foundation has said in a report. Full report here

Since 1970, area rates of poverty and wealth in Britain have changed significantly. Britain is moving back towards levels of inequality in wealth and poverty last seen more than 40 years ago. Over the last 15 years, more households have become poor, but fewer are very poor. Even though there was less extreme poverty, the overall number of 'breadline poor' households increased – households where people live below the standard poverty line. This number has consistently been above 17 per cent, peaking at 27 per cent in 2001 . Already-wealthy areas have tended to become disproportionately wealthier.

There is evidence of increasing polarisation, where rich and poor now live further apart. In areas of some cities over half of all households are now breadline poor. Both poor and wealthy households have become more and more geographically segregated from the rest of society. 'Average' households (neither poor nor wealthy) have been diminishing in number and gradually disappearing from London and the south east. Poor, rich and average households became less and less likely to live next door to one another between 1970 and 2000. As both the poor and wealthy have become more and more clustered in different areas

While in another BBC report , the Centreforum research paper , Tackling Educational Inequality , wants the funds (£2.4 billion) schools in England get to teach pupils from disadvantaged homes to be doubled .

It said low attainment too often stemmed from children's backgrounds, not their abilities.

"Britain is a bastion of educational inequality," said Paul Marshall, chairman of Centreforum, an independent liberal think tank. "The die is cast at an early age and rather than recast the die, the English educational system tends steadily to reinforce the advantages of birth."

ALIENATION IN ABERDEEN

Capitalism is a ruthless and uncaring society, just how uncaring is summed up in this news item. "A man is believed to have lain dead in his flat for almost a year before his body was discovered, a city council said. Debt collectors found the remains when they came to evict the man from his Aberdeen flat. They had called there numerous times in the past but there was never a response, Aberdeen City Council said. It is understood that the man may have died in August last year." (Times, 13 July) RD

Capitalism Shares- Or Does it ?

The proportion of shares owned by small shareholders is down to an all time low of 13 % , reported the Independent.

There are as many as 10 million private investors, and BT, for example, retains about half of the people who bought its shares in 1984, but few have a holding in more than one company. Those who own share portfolios with a value of, say, £50,000 to £100,000 is put at no more than 100,000, or 200,000 people.

Half of the UK stock market was controlled by individuals in 1963, that proportion has fallen steadily to this all-time low. The 12.8 per cent headline figure would be even lower were it not for the privatisations and demutualisations of the 1980s.

It is certainly not the Peoples Capitalism , that the apologists of the free market had hoped for .

East end , Early ends

A "cluster" of suicides among young adults has been identified in one of the most deprived parts of Scotland.They said the cluster , a "persistent and remarkably consistent" geographical concentration of suicides, was focused on the east end of Glasgow. The research showed that the east end of Glasgow has particularly high suicide rates among young adults but that this can be explained by the high levels of deprivation in this area.

Dr Exeter, the project researcher, said: "The finding demonstrates that suicide is particularly high in the most deprived part of Scotland... Factors which are known to influence suicide, such as drug misuse, divorce and unemployment, are likely to be more common in such deprived areas."

Earlier recent research which found that between 1980 and 2000, young people (aged 15-44) in Scotland's poorest areas were more than four times as likely to commit suicide than those in its least deprived areas. Socialist Courier also reported previous that the Irish Travelling Folk also suffered from much higher suicide rates due to worsening living conditions

Days of Cheap Food to End

Mark Hill, food and agriculture partner at Deloitte, the accountancy firm , warned that rising demand for wheat and maize was bound to result in increases in the price of staple foods. The era of cheap, subsidised food, which had lasted since the war, was over, he said. We are going to see sustained price inflation - a general upward trend for staple foods such as grains, milk and meat.

The price of milk, poultry and pork is also expected to increase because of a rise in the cost of livestock feed . Wheat and maize prices are at their highest level in more than a decade.

The growing trend of turning wheat and corn into alternative fuels had come at a time when stocks had been run down. Grain supplies were already under pressure as a result of bad weather that reduced harvests and pushed up prices last year. Population increases and growing affluence in China and India could double global grain consumption within the next 40 years.

Cost-Cutting Cost Lives

Hoping to expand profits has led to the courts for Cadbury chocolate.

A major salmonella outbreak caused by Cadbury chocolate bars followed a decision to change the company's product testing system . The confectionery giant sought to save money and reduce wastage by introducing an "allowable tolerance level" for salmonella in its products . There was no safe level for salmonella cells in ready-to-eat products and that the organism could survive in chocolate for years. Chocolate acts as a protective layer for salmonella organisms, shielding them from acid in the stomach.

Until 2003 Cadbury had destroyed any chocolate which tested positive for salmonella, adopting an approach that "no amount of testing will make a positive result go away."
They then changed it to what they believed to be an allowable tolerance level. Cadbury sought to save money from wastage by allowing a tolerance for salmonella in their food. Large quantities of product were being destroyed and Cadbury's were looking for ways of avoiding that . There is no dispute that there is a linkage between the chocolate that was distributed by Cadbury and the poisoning that took place later on.

Cadbury has pleaded guilty at Birmingham Crown Court to breaching food and hygiene regulations in the summer of 2006 and the scare led to the recall of more than a million chocolate bars.

Mr. Zheng Xiaoyu, the former head of China's ministry of food and drug safety , was found guilty of putting cash before food safety has been sentenced to death . Fortunately for Cadbury's directors and management , Socialist Courier does not condone capital punishment .

a fact of corporate life.

Regular readers of Socialist Courier will be aware that we have been high-lighting the generous incomes paid to those in the commanding heights of industry and commerce , now we read that the chairman of Sainsburys , Philip Hampton , yesterday brushed aside concern over soaring directors' pay, declaring that annual rises in excess of inflation are now "simply a fact of corporate life".

Last month, it emerged that chief executive , Justin King , is to reap the rewards of the failed private equity approach to the supermarket group by receiving a hefty pay rise and other adjustments to a pay packet that topped £2m last year. King will receive a 17% rise in his basic salary of £725,000 - taking it to £850,000 - plus an award of shares

It was also revealed that the Qatari royal family own a quarter of Sainsburys .

Meanwhile at Boots The Chemist , Richard Baker , the chief executive of Alliance Boots , and Scott Wheway, managing director of Boots the Chemists step down . Baker made £6.5m when he exercised his share options as the company was taken private. Wheway cashed in £1.19m.

Another Capitalist Windfall

Although it posted a slowing in sales growth Marks and Spencers , chief executive Stuart Rose received £3.6 million in salary and bonuses last year, up 68 per cent on a year ago .

Who owns the North Pole part 3

We warned here and here that due to the global warming and the increased accessibility of the Arctic Ocean and thus to the natural resources in the region that a new rivalry for sovereignty has begun in the Arctic .

Canada has announced plans for six naval patrol vessels and deep-water port in the north to assert its claim to territorial waters in the Arctic , all at a cost of $3bn (£1.5bn) .

Prime Minister Stephen Harper says the time has come to re-assert Canada's claim to the north to remind other countries - including the US - of Canada's claim to the waters off its northern coast.

The claim could also have serious economic implications. Natural resources including oil, gas and diamonds are thought to lurk - perhaps in abundance - under the Arctic ice. And then there is the North-West Passage - the northern shipping route between the Atlantic and Pacific oceans that European explorers sought for centuries. With a warming climate, the route may just become viable and lucrative.

CHARITY AS A STATUS SYMBOL

The immense wealth enjoyed by the British capitalist class is well illustrated by their charity donations. "Two tycoons have in the past few days earmarked stupendous sums for charity: hedge fund manager Chris Hohn, a prime mover in the fight to take over ABN Amro, is giving away £230m, and Peter Crudas, the founder of CMC Markets, is donating £100m. ... The rich have complex motivations for their philanthropy; a real desire to do good may be mixed with wallet-waving competition between Masters of the Universe. Some hope to disarm critics who are uneasy at the gap between rich and poor. Others have so much money they genuinely don't know what to do with it." (Observer, 8 July) RD

WHISKY AS A STATUS SYMBOL

Another example of how crazy capitalism has become in a world where millions are surviving on a dollar a day is this item. "Rare malt whisky has become the badge of success for wealthy City bankers. Trendy bars and clubs in London are reporting record sales of expensive whiskies. The most sought-after whisky on offer at the gaming club Fifty in St James’s is Johnny Walker 1805, which costs £1,000 for a dram or £14,000 a bottle. City of London staff were paid £21 billion in bonuses last year." (Times, 9 July) RD

CLAYMORE CHOPS WORKERS

Today’s exclusive by Norman Silvester in the Sunday Mail reveals plans for the possible stopping of production at the former Motorola semiconductor plant at in East Kilbride under the codename Operation Claymore. Employees were told on Friday that the new Texan owners, Freescale, were putting the giant plant up for sale.
The plant was opened up in 1969, it is thought that Freescale will only keep their research and development arm which would save about 300 jobs at most. However, 900 workers are set to lose employment.
The profit motive has lead to the closure of other fairly long established businesses in East Kilbride such as the Bruce Hotel, which suddenly was closed causing havoc for clients with wedding arrangements as well as staff, the Co-operative opened in the town centre 1970 closed recently and the uncertainty for many families with a mortgage, has MSP Andy Kerr urging the Scottish Executive to act as the closure will have a major blow on the town of East Kilbride and beyond.
Local MP Adam Ingram says he has been told nothing officially by Freescale and would be demanding answers tomorrow.
However, most electronics work is now located in Eastern Europe and Asia where costs and wages are much lower, so the crisis society that is capitalism continues to disorganise the plans and desires of communities, it always has and it always will, lets get rid of it and replace it with a society that doesn’t have a profit motive, Socialism.

THE CHURCH GOES COMMERCIAL

"A prominent Polish cleric known for preaching against communism and for his anti-Semitic remarks said on Tuesday he planned to launch perfumes, clothing and cafes branded with his image. Father Henryk Jankowski took part in strikes which led to the end of communism in 1989 as part of Solidarity movement. He was later suspended from preaching for a year after insulting remarks about Jews. ... Jankowski, who already has a wine branded with his image under the name "Monsignore," said he would be on the panel for "castings" of waitresses for the 16 cafes he plans to open in major Polish cities." (Yahoo News, 3 July)
Wine making? Cafe owners? What about that story about Jesus casting money changers from the temple? On Sunday mornings priests can preach against materialism but capitalism rules the rest of the week. RD

Drug Pushers

Which? surveyed 200 doctorsDrug companies are bombarding GPs with promotional materials and inducements . GPs received four visits per month on average from drug reps.
They also received five promotional mailings about new drugs a week, and inducements to attend conferences.

25% of the GPs questioned had been sponsored to attend a conference, seminar or training event in the UK in the last 12 months and 5% had been sponsored to attend an event abroad. In just one month, one GP was offered nine conference places and 13 meals, and received nine visits from drug reps, 10 letters, 21 leaflets, two patient information booklets and one training DVD. This amounted to 22 companies contacting her about 31 drugs.

Yet doctors still report a lack of information from independent sources and just only 7% trusted the information they received from drug firms.

Lets not make any bones about it - those in the pharmaceutical industry are in business to make profits and to compete with their commercial rivals .Drug companies will waste resources with duplication of effort for the marketing of their own particular product and leave doctors and other health workers no wiser when the information they receive proves so partisan .

What a world this is

Nearly a third of newly qualified nurses had not found a job six months after qualifying, figures show. And over half of physiotherapist graduates were unemployed, along with one in five midwives, according to a government census in March 2007.

9,000 nurses qualified between May and September 2006, but only 69% were employed six months later, meaning nearly 3,000 were unemployed.

Dr Peter Carter of the Royal College of Nursing, said: "I am hearing worrying stories from recently qualified nurses who are unable to get jobs because trusts are freezing entry level posts to save money...it is a waste of new and much needed nursing talent."

Meanwhile,

A group of stressed-out people in Spain have been given a chance to let off steam by demolishing a hotel in Madrid. The 30 winners of a contest were given sledgehammers to smash up the bedrooms and bathrooms of the 146-room hotel in the capital. The participants were selected by psychologists from more than 200 stressed applicants.

And our Fly the Flag Prime Minister

Elsewhere

Under the five-year plan, initiated by EU Agriculture Commissioner Mariann Fischer Boel, winemakers in EU countries will get cash rewards for producing less wine by abandoning some or all of their poorer quality vineyards.

Money goes to money

We have already mentioned the good fortune of Brian Souter of Stagecoach but lo and behold The Herald reports he has added a further £6.4 million to his vast personal wealth after exercising share options in the Perth transport giant. Souter this week bought 4.36 million shares at between 27p and 85.75p apiece under options granted between 2002 and 2004. The exercise netted Souter a paper gain of £6.4m, this being the difference between what he paid for the shares - £2 million - and the value of that holding now, which is £8.4 million .

He recently pocketed more than £100 million when the company returned £700 million to shareholders, and was last week granted deferred bonuses worth nearly £800,000.

Souter retained the shares bought this week and now holds a 14.72% stake in Stagecoach worth £201 million. Souter's sister, fellow Stagecoach founder Ann Gloag, has an 11% stake in the company and pocketed more than £70 million from the recent return of cash to investors .

Souter and Gloag rocketed from ninth to fourth in the league table of Scotland's wealthiest individuals, with an estimated combined fortune of £770 million.

More migrants die at sea -and ignored

Further to an earlier story , an UN refugee agency official has said 210 illegal migrants were reported drowned or disappeared in the Strait of Sicily in June while attempting to cross from northern Africa into Europe. Migrants from northern and sub-Saharan Africa often attempt the treacherous journey in small, rickety boats after paying large sums to smugglers.

Paolo Artini, an official with the UN High Commissioner for Refugees office in Italy stated:-

“When it is a matter of saving lives at sea, a narrow interpretation of what constitutes a distress call, and any protracted discussion on search-and-rescue responsibilities should not be considered ethically acceptable,” .

He criticised “gaps in the legal framework concerning rescue at sea, and insufficient cooperation among states who often hold different views.”
Disputes have erupted recently over which country should take responsibility for migrants rescued in the international waters between Italy, Malta and Libya.

House Prices

Savills , the estate agent and consultancy group said demand for “super prime” houses continued to rise strongly, with interest coming from international as well as UK purchasers.

The super prime residential market – houses costing £5m or more in London and large country houses – was continuing to benefit from City bonuses but was also “heavily influenced” by international buyers who accounted for about half of purchases.

They are , of course , the people who are largely unaffected if the interest rate goes up . But for the rest of us mere mortals there has been a “a cooling of the UK mainstream” market and some oversupply of new homes, especially flats, in provincial cities .

For a fuller analyse of the property boom and the probability of the bubble bursting read here

THE FAILURE OF REFORMISM

"Social mobility is more difficult for children in Britain than for those in most other wealthy countries. A study by the London School of Economics found that poorer children born in 1970 had less opportunity to improve their economic and social status as adults than those born in 1958." (Times, 3 July) Fifty years of reforming British capitalism and the end result is abject failure! RD

BIBLICAL WEATHER FORECASTING

The owning class spend a great deal of money in keeping the Meterological Office running but a reverend gentleman has come up with a super wheeze to save that expenditure."The floods that have devastated swathes of the country are God's judgment on the immorality and greed of modern society, according to senior Church of England bishops. One diocesan bishop has even claimed that laws that have undermined marriage, including the introduction of pro-gay legislation, have provoked God to act by sending the storms that have left thousands of people homeless. ... The Rt Rev Graham Dow, Bishop of Carlisle, argued that the floods are not just a result of a lack of respect for the planet, but also a judgment on society's moral decadence." (Sunday Telegraph, 1 July) Simple really - read your bible, do what the bishops say and you can close the metrological offices! RD

And not before time

A memorial to workers killed during the construction of the Forth Bridge is set to be officially unveiled. Work began on the one-and-a-half mile bridge in 1883 and at its peak 4,600 worked on it.

The memorial will honour the known 71 men and boys who died during the seven years it took to build the bridge. It is believed the actual figure is much higher. Research into the exact number who lost their lives is still being carried out. The Queensferry History Group has been working to uncover the true extent of the death toll.

MISSION IMPROBABLE

John Travolta and Tom Cruise are famous film stars who are Scientologists. This is a religion dreamt up by former science fiction writer and con man Ron L. Hubbard. It is difficult to deal with their ideas as they keep them a secret. "Since the full knowledge of the faith is reserved for those who complete the course, there can be no official confirmation to outsiders of what they ultimately believe. According to popular culture Scientology teaches that 75 million years ago the intergalactic tyrant Xenu brought millions of space aliens to earth." (Times,23 June)
It isn't only poor exploited workers that are victims of religious nonsense, even well-heeled people can be conned too! RD

Terror at Glasgow Airport

No matter how much Socialist Courier condemns such indiscriminate attacks as the attack at Glasgow airport , we cannot simply resort to the hypocrisy of the tabloid and broadsheets and condemn without endeavouring to understand the motivation of why members of our own class are prepared to slaughter their fellow workers .

This month's Socialist Standard just happens to carry an article called Suicide Bombers - Heroes or Villains .

We can only paraphrase its conclusion :-

That those behind the terror , have their sights on political power and are intent upon replacing the existing elite , encourage and facilitate others to carry out acts of murder which they themselves are unwilling to undertake.
In effect they are attempting to emerge as a new ruling class by clambering through the blood and over the bodies of our class.

Stagecoach Returns

Brian Souter of Stagecoach pocketed another £100m recently following the company's decision to return cash to investors is on his way to making another £1m. Souter was yesterday granted deferred bonuses worth nearly £800,000 at last night's closing share price of 182.75p. Souter had been granted 141,526 deferred shares under the 2005 executive participation plan with a paper value of £260,000. He also got 294,129 "incentive units" under the firm's long-term incentive plan.

Another beneficiary of awards granted yesterday was Martin Griffiths, the finance director. He got 70,677 deferred shares under the EPP, notionally worth more than £129,000, plus a 199,170 LTIP units worth nearly £365,000. These awards also vest in 2010. Four other executives, including rail chief Ian Dobbs and Les Warneford, managing director of Stagecoach UK Bus, were granted deferred shares under the EPP plan. Dobbs got 42,710 and Warneford 39,501.

Education and class division

Dr Elliot Major said: "This analysis shows that the school you attend at age 11 has a huge impact on your life chances, and particularly how likely you are to reach the top of your chosen profession. We are still to a large extent a society divided by wealth, with future elites groomed at particular schools and universities, while the educational opportunities available to those from non-privileged backgrounds make it much more difficult for them to reach the top."

Lee Elliot Major of the Sutton Trust, an educational charity, compared the school and university background of 500 people currently at the top of their fields with 500 similarly successful people 20 years ago.

Tesco - greedy , miserly and indifferent

Tesco at its AGM today had Ben Birnberg, company secretary for the anti-poverty charity War on Want, put forward a resolution calling for Tesco's supplier factories to undergo independent auditing to ensure decent pay and conditions for developing world workers.

Birnberg, however, said Tesco's opposition to the resolution reflected badly on the top retailer.'There's nothing that lowers a company in the estimation of right thinking people than a public display of executive greed in the affluent world going hand-in-hand with a public display of corporate miserliness and indifference to those at the bottom in an impoverished world, who contribute so magnificently to corporate wealth,'

Garment workers in Bangladesh, the majority of them women, were being paid just 5 pence an hour and regularly worked 80 hours a week to make cheap clothes for Britain's largest retailer, Birnberg said. His resolution called on Tesco to take appropriate measures, independently audited, to ensure workers in the developing world are guaranteed decent working conditions, a living wage, job security, freedom of association and collective bargaining including the right to join a trade union.

'The irony of the board recommending shareholders vote against our resolution to increase the meagre pay of its outsourced workers while recommending they vote for an incentive plans which will augment the already absurdly generous re-numeration packages of its top executives -- boosting the chief executive's take-home pay by up to £11.5 million on top of last year's £4.62 million-- may be lost on the board..." said Susan Seymour of the Joseph Rowntree Charitable Trust

THE WEALTHY GET WEALTHIER

"The 2007 World Wealth Report, from Merrill Lynch and Cap Gemini, indicated that the number of ultra high net worth individuals - with $30 million or more to invest - in Britain rose by 10 per cent last year to about 3,750. About one in six of Europe's 23,460 super-rich now hails from the UK. ... Globally nearly 10,000 more individuals joined the ranks of the super-rich, taking the total to about 95,000." (Times, 28 June) So much for the Labour Party's promises about a more equitable society! RD

Money worth more as scrap value

Millions of Indian coins are being smuggled into neighbouring Bangladesh and melted down and turned into razor blades according to a BBC report .

"Our one rupee coin is in fact worth 35 rupees, because we make five to seven [razor-] blades out of them,"

In Calcutta alone, India's central bank - the Reserve Bank of India - has distributed coins worth nearly six million rupees ($150,000) to overcome the shortage in the last two weeks . Long queues form outside the bank's regional office in the city centre every time this happens.
Unscrupulous touts set up makeshift shops and collect as many of the coins as they can, only to sell them later at a premium. The coin shortage is most acute in the north-eastern frontier town of Agartala, right on the border with Bangladesh and believed to be a major centre for contraband trade with Bangladesh. In Guwahati, Assam's capital and the business hub of India's northeast, small coins like 50 paisa have completely dropped out of circulation.

We can only say , ...Oh , for that day when all the world's coinage is turned into something as socially useful as razor-blades .

Scotland's Weather Forecast for Tomorrow ?

While doing the previous blog posting Socialist Courier came across research describing the possible local effects of climate change upon Scotland , a report by the Scottish Environment Protection Agency .

The weather will become more erratic and therefore less predictable, with a greater likelihood of extreme events.

More frequent and severe river flooding, affecting 77,000 properties
Increased likelihood of summer droughts leading to river water quality problems and disruption of water supply
Periods of reduced river flow providing less dilution for discharges with increased sewage treatment costs
Increased treatment costs to provide water supplies
Increased run-off impacting on bathing water quality
Enhanced plant/algal growth due to increased temperature
Increase run-off increasing nutrient loading in water
Changes in abundance and distribution of species and length of growing season
Higher temperatures less favourable for native species
High intensity rainfall causing destruction to river habitat
Increased erosion and siltation with consequences for fish spawning
Disruption to food chain with potential catastrophic loss of species (e.g. island breeding sea bird populations)
More frequent and coastal flooding affecting 93,000 properties
Higher sea level, increased wave height leading to coastal erosion and loss of habitat
Loss of traditional commercial fishery
Drying out of soils combined with higher intensity storm events causing landslides, with potential disruption of transport links
Accelerated decomposition of peaty soils resulting in increased emissions of carbon dioxide and methane, fuelling further climate change
Increased soil loss through water and wind erosion
Changes to agricultural practice and crops
Increased flood-related stress, illness and economic costs
Increased respiratory illness and heat-related distress
Local and regional ozone air quality goals probably more difficult to achieve in the future
An increase in summertime photochemical smog, linked to increasing temperatures and small reductions in cloud cover

The future indeed looks bleak . Left unchecked, climate change will accelerate with significant consequences for Scotland’s environment and society. It is time for a real change of the political climate . Scotland and the world needs Socialism .

Its going to get hotter

Global warming may reduce the number of people who will die from the cold each winter , In the UK for instance, there are 20,000 cold-related deaths but researchers in America claim that this will be off - set by an increase of deaths resulting fro heat-waves ( at present, about 1000 deaths a year are related to heat in the UK ).

Researchers at the Harvard School of Public Health looked at the deaths of more than 6.5 million people in 50 US cities between 1989 and 2000. They found that during two-day cold snaps there was a 1.59% increase in deaths because of the extreme temperatures, but during similar periods of extremely hot weather death rates rose by 5.74%.

The 2003 European-wide heat wave and its associated fatalities ( nearly 15,000 deaths in France ) , can be expected to repeat itself .

Not just deaths but economic effects such as reduced crop harvests , too , Wheat had an overall short-fall of 10% .

Professor Bill Keatinge of Queen Mary's School of Medicine and Dentistry in London said about the report :-

"In the long term we may have to make some lifestyle changes - working at different times for instance, but nothing that is not manageable."

Socialist Courier believes that the change which is necessary is one of social systems , a change from Capitalism to Socialism , not simply a switch to siestas in the mid-day sun .

Elsewhere on the BBC website we read a study was produced by more than 200 experts from 25 countries predict tens of millions of people could be driven from their homes by encroaching deserts, particularly in sub-Saharan Africa and Central Asia ( this supports earlier research ) . 50 million people could be displaced within the next 10 years. Desertification is an environmental crisis of global proportions, and one third of the Earth's population are potential victims of its effect. Over-exploitation of land and unsustainable irrigation practices are making matters worse. Climate change was also a major factor degrading the soil.

Zafar Adeel, the lead author of the report, said: "...we need to provide alternative livelihoods - not the traditional cropping based on irrigation, cattle farming, etcetera - but rather introduce more innovative livelihoods which don't put pressure on the natural resources. Things like ecotourism or using solar energy to create other activities."

In a sane , rational , logical society indeed that is what would probably happen , but we live in a market -dominated , profit-motivated world where such decisions are made by partisan politicians at the beck and call of businessmen and accountants and not by sober-minded scientists and other experts .

The Tragedy of the Irish Travelling Folk

Life expectancy of Irish Travellers still at 1940s levels . Back in the 1940s, the life expectancy of Irish Travellers was the same as that of the settled population. Now, it is 65 for men as against 75 for settled men, and 65 as against 78 for settled women. There has been no improvement in life expectancy for travellers in 20 years.

Findings show that seven in 10 travellers die before reaching the age of 59. Half die before the age of 39. In the total population, 2.6% of all deaths are for people aged under 25 years yet the figure for the Travelling community is 32%.
Such statistics put the estimated 30,000 Travelling community well outside the health norms of Irish society.

Infant mortality is 10 times higher among Travellers. 10% of children die before reaching the age of two - compared to just 1% in the general population.

Suicides are also more common than among the general population.

It follows decades of campaigns for Travellers' rights. The only possible conclusion is that these campaigns have failed. Prejudice and exclusion remain sharp, and living conditions have actually worsened. The report points to Traveller reluctance to use the State services, including hospitals. That will not end while what it calls the "begrudging" attitude of government departments continues.

Advising or pulling the strings ?

Gordon Brown is creating a special council of business leaders to advise him directly as Prime Minister. It will meet two or three times a year and will advise Mr Brown on whether government policy is helping or damaging Britain's competitiveness. Members will be available to Mr Brown to give him advice as and when needed.

BUSINESS COUNCIL MEMBERS
Damon Buffini, Permira
Stuart Rose, Marks & Spencer
Tony Heywood, BP
Sir Terry Leahy, Tesco
Arun Sarin, Vodafone
Stephen Green, HSBC
Sir John Rose, Rolls-Royce
Mervyn Davies, Std. Chartered
J-P Garnier, GlaxoSmithKline

Gordon Brown - muppet and puppet

Who Owns the North Pole - Part 2

Further to this earlier blog on the newly discovered economic and strategic potential of a warmer Arctic region , Russian geologists now say they have data that would support a claim to about 1.2m sq km (463,000 sq miles) of energy-rich territory in the Arctic .
The Russian team, from the Oceanology Research Institute in St Petersburg, estimates that the Lomonosov ridge area in the Arctic contains oil and gas reserves of up to 10 billion tonnes. The geologists spent 45 days studying the Lomonosov underwater ridge.

The Law of the Sea Convention allows states an economic zone of 200 nautical miles, which can sometimes be expanded. To extend the zone, a state has to prove that the structure of the continental shelf is similar to the geological structure within its territory.

Needless to say , when it comes to a scramble for the natural wealth and riches of the world there are rarely no competitors and in this case Denmark are laying their claim to sovereignty to parts of the region also . Science Minister Helge Sander said that success would give Denmark access to "new resources such as oil and natural gas".

"First, we have to make the scientific claim. After that, there will be a political process with the other countries," science ministry official Thorkild Meedom said.

In the past , such political process between capitalist nations over raw materials has included war and invasion . It is not beyond the bounds of reason to expect a militarisation of the Arctic Circle and possible armed conflict as competing nations vie for control .

Crime Pays for Some

A junior barrister was handed more than £1 million in legal aid last year, it was revealed yesterday. Balbir Singh, head of Birmingham’s Equity Chambers, was paid £1,116,000 in 2005/06.

The second-highest paid was Nigel Lithman, QC, who received £978,000 in legal aid, followed by John C. Rees, QC, with £947,000.

Four of the 10 top-earning criminal barristers were from the same chambers: 2 Bedford Row in London. Mr Lithman, William Clegg, QC, Jim Sturman, QC and Howard Godfrey, QC had a combined pay-out of £3.3 million.

Tuckers Solicitors was the highest paid criminal firm, receiving £8.5 million in the year from the legal aid purse. They were followed by Irwin Mitchell (£5.3 million) and Burton Copeland (£5 million).

In a separate list of community legal service firms - carrying out non-criminal work - the highest paid was Duncan Lewis Solicitors with just under £7 million, followed by Irwin Mitchell with £5.2 million.

The law is an instrument of the owning class, that pretends to be for everyone, but is only for the rich. It's an instrument of class domination.

Shakespeare's Henry VI — “First thing we do, let's kill all the lawyers” - Perhaps , on reflection that maybe a sanction a little bit too severe .

Aghanistan - Opium for the people

Despite the presence of more than 30,000 international troops , the World Drug Report says more than 90% of illegal opium (compared to 70% in 2000 and 52% a decade earlier,), comes from Afghanistan. Helmand province alone cultivates almost half the world's illegal opium.

Thomas Pietschmann, the report's author, says production in Helmand has now outstripped that of entire countries.

"The province of Helmand itself is around 70,000 hectares under cultivation, which is three times the total area under cultivation in Myanmar (Burma). So only one province, three times as important as the whole of Myanmar, the second-largest opium-producing country," Mr Pietschmann says.

Harvests have been rising significantly since the US/British overthrow of the Taliban regime five years ago and last year's rise in Afghanistan pushed global production up by a massive 43% compared to 2005 .

Meanwhile the Seattle Post-Intelligencer reports U.S. and/or NATO forces are killing Afghan civilians at a faster rate than militant insurgents .

Why are we there , again ? To bring law and order and stability , was it ?

POVERTY IN DUNDEE

Every week in the Dundee-produced Sunday Post kids can enjoy the cartoon adventures of Oor Wullie, but the reality is much harder for children in that city as a recent report from a local paper shows. "A new study by a children’s charity has reinforced a recent raft of statistics ramming home the shameful message that many thousands of Scots children—many of whom are in Dundee and Tayside—are living in poverty. Save the Children has demanded that the new Scottish Executive takes immediate action on its disclosures that nearly 100,000 children are in families struggling to get by on unacceptably low incomes.... In January, the Joseph Rowntree Foundation indicated that while Glasgow continued to set the benchmark for children living below the breadline, Dundee had four council wards where the percentage of children dependent on state handouts was twice the national average. Last month, Barnardo’s put the number of children living in poverty at a quarter of a million, with one in three children in Dundee caught in the trap." (Courier, 24 June) RD

Social Mobility Stands Still

A charity's study has found that children born in the 1950s had a better chance of escaping poverty than those born in the 1970s. The research was carried out on behalf of the Sutton Trust by the London School of Economics .

Professor Steve Machin, from LSE, said: "We had a very big expansion of the higher education system in the late 1980s and early 1990s, but contrary to many people's expectations this actually reinforced social immobility." People at the bottom of the "income distribution" were ill-equipped to take advantage of the greater opportunities.

The founder of education policy group, the Sutton Trust, Sir Peter Lampl says Britain has "the lowest social mobility of any country you can measure".

He went on to say that inequality between the rich and poor in Britain was a root cause of the problem.

This study re-confirms an earlier LSE report on social mobility and Peter Lampl echoes the view of Alan Milburn, the former Labour cabinet minister who grew up in a single-parent family on a council estate, who said it would be harder today for someone from a similar background to get ahead in society than it was a generation ago.

MUSLIM HYPOCRISY

All religions are full of hypocrisy, but in view of recent declarations of Muslim holy men decrying decadent Western culture, this report must be up there with Christian hypocrisy in the all-time hypocrisy stakes. "It's Monday night in a dingy club on the outskirts of the Syrian capital. Two dozen girls are moving half-heartedly on the dance floor, lit up by flashing disco lights. They are dressed in tight jeans, low-cut tops and knee-high boots, but the girls' make-up can't disguise the fact that most are in their mid-teens. It's a strange sight in a conservative Muslim country, but this is the sex business, and it's booming as a result of the war in Iraq. Backstage, the manager sits in his leather chair, doing business. A Saudi client is quoted $500 for one of the girls. Eventually he beats it down to $300. Next door, in a dimly lit room, the next shift of girls arrives, taking off the black all-covering abayas they wear outside and putting on lipstick and mascara." (Independent, 24 June) RD

RISING PROFITS

If real wages are falling in relation to the wealth produced, the opposite is happening on the profits front. A good example of the fabulous wealth of the capitalist class can be seen from the frenzied bidding going on at London art sales. A painting by Francis Bacon fetched £21.58 million, a Lucian Freud went for £7.86 million and a Damein Hirst medicine chest sold for £9.65 million. "The frenzy of art buying offered more evidence of the widening gulf between London' super-rich and the rest of the country. This week it was revealed that only a fraction of the 400 people earning £10 million or more in Britain pay income tax, while the number of individuals earning £500,000 has swelled by nearly 60 per cent in the past four years." (Times, 23 June) RD

FALLING WAGES (2)

Another example of how worker' wages have been falling appeared recently. "Consumers' disposable income has fallen by a sixth over the past four years, according to a report that highlights the squeeze on homeowners from the increase in mortgage costs, fuel bills and other essential payments. Just 22 per cent of a typical household’s monthly income is left over after taxes and essential bills have been paid, down from 28 per cent in 2003-2004, according to a study by report from Ernst & Young, the accountants. ... Adjusted for inflation, that means that an average family has seen their disposable income - "The pound in their pocket" - drop by 12.5 per cent." (Times, 22 June) RD

The Poor - Poor Health Report

Socialist Courier has reported previously on the link between poverty and health and we make no apologies of continuing to highlight the problem that the poorer we are , the more we are at risk health-wise and that the establishment political parties have failed to resolve this state of affairs no matter how many reforms or campaigns . The politicians pay lip-service to change but nothing really changes .

The Sunday Herald reports that the gap in standards of health between people in the richest and most deprived areas of Scotland has grown rather than diminished in the past two decades. A new study has revealed how disparities in wellbeing among different sectors of society have improved little since the 1980s.

Although male life expectancy increased overall during the 20-year period, the gap between the richest and poorest widened from five years to seven and a half years during that time.

In addition, there was a doubling of the gap in heart disease hospitalisation rates between the most and least deprived areas.

In the early 1980s, the percentage of low-birthweight babies being born to mothers in poor areas was 6.7%, which was 2.9% more than those in the least deprived category. But by the late 1990s, the difference had grown to a 3.4% gap.

Professor Phil Hanlon, public health expert at Glasgow University, pointed out that differences in the health of the rich and the poor had existed for hundreds of years. But he added it was disappointing that government efforts in the past 15 years in Scotland had not succeeded in closing the gap.

Peter Kelly, director of the Poverty Alliance said "These poorer health outcomes are not solely the responsibility of individual action and behaviours, but are the outcome of larger social processes,"

What an Arsonist

Remember Lord Watson ? The disgraced former Glasgow Cathcart MSP and Labour culture minister who set fire to a hotel room and served a prison sentence for arson .

According to the Sunday Herald , he has claimed almost £32,000 in House of Lords' expenses since his release - £11,918 for "overnight subsistence" - shorthand in the Lords for hotel bills , £7014 in office costs , £7394 in "day subsistence", an allowance peers can claim for showing face in the chamber , £5606 in travel costs .

And his contribution to British democracy to justify such rich pickings ?

A half an hour's worth of speeches over the 10-month period - A short contribution on the future of BBC Scotland. This was followed by a 12-minute speech on renewable energy, a seven-minute contribution on International Women's Day and nine minutes on child poverty. His House of Lords' activity works out at around £8000 per speech.

Watson does not sit on any parliamentary committees, and no record exists of him tabling any written questions .

Not too bad for an ex-felon .

LAND OF THE FREE?

One of the great Hollywood fantasies is that dirty foreigners are up to no good, but that decent US citizens always behave beautifully, but according to recent US government disclosures this is indeed a Hollywood fantasy. "The US Central Intelligence is to declassify hundreds of documents detailing some of the the agency's worst illegal abuses from the 1950s to 1970s The papers, to be released next week, will detail assassination plots, domestic spying and wiretapping, kidnapping and human experiments. Among the incidents that were said to "present legal questions" were: ..assassination plots of foreign leaders, including Cuba's Fidel Castro .. wiretapping and surveillance of journalists ...surveillance of dissident groups between 1967 and 1971." (BBC News, 22 June) RD

Food for Thought

From the Independent , the newspaper thats rapidly acquiring the reputation for doom and gloom , another story of impending catastrophe . The era of cheap food is coming to an end .

In the UK food prices are now rising at 6 per cent a year, twice as quickly as the general cost of living . In India the overall food price index is 10 per cent higher than last year. In China, prices are up 20 per cent for some staples. A similar inflationary trend can be seen in America.

Earlier this month, wheat prices reached their highest level in 10 years. Maize prices have doubled over the past year. Rice prices are rising too. Rice prices are climbing worldwide. Butter prices in Europe have spiked by 40 per cent in the past year. Global soybean prices have risen by a half. The food price index in India was up by 11 per cent year on year. In Mexico there have been riots in response to a 60 per cent rise in the cost of tortillas. The price of cereals in this country has jumped by 12 per cent in the past year. And the cost of milk on the global market has leapt by nearly 60 per cent.

This is being passed on to the price of other foodstuffs such as meat and eggs, as much of these commodities are used for animal feed. Pork prices in China are up 20 per cent on last year . Butter prices in Europe have risen by 40 per cent in the past year.Rising global prices will hit poor countries hardest.

One reason for the price surge is the wholesale diversion of grain crops into the production of ethanol. Thirty per cent of next year's grain harvest in the US will go straight to an ethanol distillery. As the US supplies more than two-thirds of the world's grain imports (The US ships more grain than Canada, Australia and Argentina combined. ) this unprecedented move will affect food prices everywhere. In Europe farmers are switching en masse to fuel crops to meet the EU requirement that bio-fuels account for 20 per cent of the energy mix. Jean Ziegler, the UN special rapporteur on the right to food, accused the US and EU of "total hypocrisy" for promoting ethanol production in order to reduce their dependence on imported oil. He said producing ethanol instead of food would condemn hundreds of thousands of people to death from hunger.
"Recently there's been a huge increase in the demand for industrial corn for the production of ethanol which inevitably pushes up the price of food stuffs," says Dawn McLaren, a research economist at the W P Carey School of Business in Phoenix, Arizona. "But if we get a particularly bad harvest or if a weather system like El Niño strikes we could be really stuck." Mrs McLaren says that as the West looks to replace its oil, poor people will pay the price. "It doesn't strike me as a very good idea to start using yet another vital and limited resource to wean ourselves off oil,"

Other reasons for rising food prices have been several bad harvests and adverse weather. Or it could be the spike in farmers' fuel prices as a result of instability in the Middle East. Perhaps likely is a substantial global demand shift is beginning to affect prices. There is a higher demand for cereals from China and India. India has become a net importer of wheat for the first time since 1975. China is expected to become a net importer of maize by 2008.

The solutions being offered ? Greater trade liberalisation to bring prices down .
New technology - to bioengineer crops specifically to be used for fuel to minimise the effect on the food market.

But the simpler solution , to create a society where peoples needs take priority over the capitalist market is once again over-looked .
The re-organisation of resources without the requirement to provide the capitalist class with profits would address and remove many of the worlds problems of food shortages .
The answer lies in Socialism .

We are getting poorer

Disposable income has fallen to a five-year low, according to a study by Ernst & Young.

Big rises in household costs continue to outstrip wage increases .

Average monthly mortgage repayments, typically a household's largest monthly outgoing, have soared 65% in the last four years, and are up 12% in the last year alone.

Also seeing above inflation rises on a host of fixed costs such as council tax bills ( Up 20% since 2003/04 for a band D property) , water rates, pension contributions and petrol (11.7% higher than last year)

Household bills have risen by 31% since 2003/04, and now account for more than 50% of a typical household's gross income, up 5% in the same period.

Loans, credit cards and overdrafts have soared more than 30% in the last four years, with the average unsecured debt now standing at £8,028 - compared to £6,568.

The average British household now has £837.53 disposable cash to spend each month after total fixed outgoings.

Gap between rich and poor 'could cause riots'

One of Britain’s richest men has given warning that the gap between rich and poor could eventually lead to violence and rioting on the streets.
Sir Ronald Cohen, founder of Apax Partners, the private equity firm, and a close ally of Gordon Brown, said in an interview that if people are “left behind” in the race to accumulate riches, Britain could see a repeat of the Paris riots two years ago.

Sir Ronald Cohen , a big Labour donor who has an estimated £260 million fortune, highlighted his concerns about the future for Britain’s haves and have-nots, saying that the widening gap was "something to be concerned about".
He said: “Entrepreneurial economies which have high rates of growth and high rates of job creation do lead to great divergences in wealth.When economic situations get bad, it takes a spark to ignite a violent reaction.”
His spokesman told the newspaper later: “He was referring to how when people get left behind, when young men get left behind, for economic or welfare reasons, it can lead to violence, such as during the riots in Paris.”

As reported in the Daily Telegraph , of the 400 hundred people thought to be paid more than £10 million a year in dividends, interest, rents and profits , only 65 face income tax bills, according to figures obtained under the Freedom of Information Act.

We in the Socialist Party fully understand the frustrations of the working class when we all witness the inequalities of society , but we would counsel our fellow workers to use their political power to do away with Capitalism , rather than futilely take to the streets .

A Princely Sum for Some

PRINCE William turns 25 today and becomes entitled to part of the inheritance left to him by his mother Diana . He gains access to the income accrued on the £6.5 million he was left in the Princess's will. Following investment, this is estimated to have grown to around £9 million .

But unlike you or me who would need the money to pay bills and acquire a few luxuries to make life easier for ourselves , inside sources said that the future king will, for now, not touch the money - estimated by financial experts to be between £250,000 and £300,000 a year.

FALLING WAGES

"Globalisation has reduced the bargaining power of unskilled workers and pushed up inequality in many western countries, the OECD said yesterday, urging governments to improve their social safety nets. The Paris-based rich nations club said in its annual Employment Outlook that the prospect of off shoring was likely to have increased the vulnerability of jobs and wages in developed countries. ...The report pointed to a "remarkable" fall in the share of wages of national income in OECD member countries in the past couple of decades. Japanese wages have fallen by around a quarter as a share of GDP in the past 30 years, while they have dropped 13% in the 15 wealthier European Union countries and 7% in the United States, the report showed. US wages as a share of GDP remain ahead of those in the EU." (Guardian, 20 June) Another example of how the development of capitalism only benefits the owning class.RD

It rambles on

Further to an earlier post Lord Smith of Finsbury, the president of the Ramblers Association, has attacked the court decision to limit access to the countryside near Ann Gloag's home has indeed hit the nail on the head .

"Much of the land Mrs Gloag wants to fence off can't even be seen from the castle itself. This is more about privilege than it is about privacy...Even more disturbing is the reason Sheriff Fletcher gave for his decision. He said that it was because Mrs Gloag was wealthy and had a high profile that she was entitled to a higher degree of protection. This sounds to me very like one law for the rich and another for the poor..."

Mrs Gloag, who along with her brother Brian founded the Stagecoach bus company, is worth an estimated £395m .

Why should Lord Smith be so surprised . The law has always favoured the wealthy and the powerful . We at Socialist Courier don't expect that to change .

BIG BROTHER IS WATCHING YOU

"Britain is already the most tightly surveilled country in the world, according to civil liberty groups and security experts, with an estimated 4 million closed-circuit television cameras spying on roads, buildings, stations and shops. Not only does that equate to one camera for every 14 people, it also means that in a major city like London -- where CCTV is ubiquitous -- people run the possibility of appearing on camera up to 300 times a day as they move around. ...That came against the backdrop of government plans to introduce new digital identity cards and expand its DNA database -- both plans that provoked commentators to declare the onset of an Orwellian "Big Brother" society. In recent weeks there was even more cause for concern with the introduction of "talking" CCTV cameras in some towns, a system where unseen controllers admonish misbehaving passers-by through a loudspeaker. Mini, remote-controlled helicopters rigged with cameras have also been introduced in the north of Britain, allowing police to hover the aircraft over crime-ridden inner-city streets and monitor events." (Yahoo News, 17 June) Capitalism is becoming more and more a nightmarish distopia, undreamt of even by Orwell at his most pessimistic. RD

LET THEM SUFFER

"Sick children who have been taking part in trials for a drug that has transformed their lives now face the prospect of being denied the treatment because of NHS cost-cutting. Doctors have condemned the NHS for inflicting misery on children who have the painful rare blood disorder sickle cell anaemia. Some children have gone from the agonising routine of having their parents insert a needle into their stomach for eight to 12 hours a night at least five nights a week, to taking two Exjade tablets daily. The drug cleanses their blood of life-threatening excess iron - a side effect of the frequent blood transfusions needed to treat the disease." (Observer, 3 June) 10,000 people in the UK suffer from this condition, so why the delay in supplying this drug? It costs £10,000-£15,000 for a year's supply for a sufferer. Need any other explanation? RD

THE OPEN SOCIETY?

Politicians are always boasting about what an open society capitalism is in this country, not like some Middle East or African countries. In fact when they have something to hide, they hide it. "The Ministry of Defence has banned the media from attending a conference in which the head of the Army and other senior officers are to reveal their vision of future land warfare. General Sir Richard Dannatt, the Chief of the General Staff, who caused alarm bells at the Ministry of Defence last year after revealing his concern about the continuing presence of British troops in Iraq, is to be the main speaker." (Times, 2 June) No mystery then, why this won't have press coverage! RD

THE FILTHY RICH

"Somewhere in the world, 100-foot yachts are derided as "dinghies," ... and "true wealth" starts at a hefty $10 million. That's "Richistan" The term, which journalist Robert Frank defines as a "parallel country of the rich," is also the title of his new book about its inhabitants, whom he calls Richistanis. The book got its start in 2003, when Frank, who reports for The Wall Street Journal, picked up a fresh, full-time beat: the new rich. "I immersed myself in their world, hanging around yacht marinas, slipping into charity balls, loitering in Ferrari dealerships and scoping out the Sotheby's and Christie's auctions," he writes. ... From 1995 to 2003, the number of millionaires in America doubled. During the same period, the number of households worth $5 million, $10 million and $25 million, respectively, all doubled. In 2005 alone, America minted 227,000 new millionaires." (USA Today, 17 June) As you are reading this in the Socialist Courier and not the Wall Street Journal it is unlikely you belong to Richitan, you are more likely to be a subject of Poveritan! RD

NOT SO NICE

There can be few more inappropriate acronyms than the government's creation NICE. "Thousands of people face sight loss after treatment was deemed too expensive. Two drugs proven to be effective in treating eyesight conditions were rejected by the National Institute for Clinical Excellence." (Times, 19 June) RD

Food Aid Fails

From Time magazine , how the feel good factor in charity does very little to ameliorate famine .

Food aid feels good. Last year United Nations World Food Programme (WFP) coordinated emergency food aid for 73 million people worldwide, with the U.S. contributing 60% of that total.

"There's no question that food aid saves millions of lives,"

YET

"...we're concerned that it's being asked to do too much, too inefficiently, and that by over-relying on food aid we ignore other solutions that could be more effective."

A January report by the U.N.'s Food and Agricultural Organization (FAO) put the question bluntly: Can food aid do more harm than good?


One-third of food-aid budgets never reaches the intended recipients and is instead swallowed up by costs in donor countries, according to the OECD. Only 15% of donated food is sourced locally . When food finally arrives — often too late to feed those most vulnerable — the influx of foreign products wreak havoc on the local market, depressing prices just when farmers need income to feed themselves.
Almost all U.S. food aid, by law, must be grown and processed at home. U.S. agribusiness, which receives subsidies for growing such crops, and the U.S. shipping industry profit from the arrangement. In April, the U.S. Government Accountability Office released a scathing report on how America underachieves in its attempts to feed the world, noting that the amount of U.S. food aid actually reaching beneficiaries has declined by 43% over the last five years because of escalating transport and administrative costs.

Even though plentiful grains may be harvested just over the mountain from famine-stricken areas the first instinct of most governments is still to send bags of grain rather than pursuing longer-term solutions like building roads linking local farming communities with drought-suffering regions. Ethiopia, for example, is one of the largest corn growers in Africa, but poor transportation networks prevent most farmers from selling their crops outside their villages.

"It's all well and good for the American public to feel good about their corn feeding starving people," says Edward Clay, senior research associate with the Overseas Development Institute, a London-based think tank. "But do American taxpayers realize that their money is being used to fund a hugely inefficient enterprise?"

Save the Chidren Poverty Report

Yet again Socialist Courier posts a reminder that Capitalism fails to provide for all members of society for no more reason than that they are born into the wrong class .

Much to the chagrin of the government Save the Children said on Tuesday that one in ten children in Britain are living in "severe poverty" in families surviving on an average income of £7,000 a year .

Using a new measure that combines household incomes with adult and child deprivation, the charity calculated that 10.2 % of children -- or 1.3 million -- were living in what it called "severe poverty."

In the report, Save the Children said conditions were worst in London where severe poverty affected one in six families, living on incomes well below the national average of £19,000 a year.
It said 84% of families in severe poverty could not make regular savings of £10 or more a month. Three-quarters cannot afford to replace worn out furniture.

"It is an outrage that in such a wealthy country, parents are struggling to get by on such low incomes and children are missing out on basic things like living in a warm house, having a proper diet or going on a school trip," the charity said.

CAPITALISM DISTORTS SCIENCE

Two separate items from the same day's newspaper illustrate the harshness of capitalism. "Several men were arrested in an organ-smuggling inquiry in Jordan for allegedly luring poor people to sell their kidneys. More than 80 cases have been uncovered in recent months. Each kidney can sell for up to $2,000 (£1,000)." (Times, 5 June)
"Clinical trials that compare two similar drugs are significantly more likely to favour the one made by the company that pays for the work, according to a study that sheds new light on bias in medical research. ...The work, by a team led by Lisa Bero, Professor of Clinical Pharmacy at the University of California, San Francisco, raises fresh concern about the influence of pharmaceutical companies over research." (Times, 5 June) RD

Freedom Is Jail

Just to reinforce the previous blog's comment that capitalism distorts all relationships a report comes out of Europe that finds many women in Scotland are choosing to go into prison - and stay there longer - because their lives on the outside are so chaotic .

In some cases, the problems faced by women on the outside were so enormous they considered prison as a refuge.

"There is evidence that some of these women are choosing to go to prison," said Dr Shewan of Glasgow Caledonian University .

It indicates some women choose to go to prison to escape abusive partners; others to try to stabilise spiralling debts and drug addiction. Also reveals that women had committed crimes (including fire-raising) within prison so as to actually avoid release .

Scotland has one of the fastest-growing female prisoner populations in Europe, despite repeated promises from ministers to reduce the problem. In the past decade, it has more than doubled. Last year, it peaked, with 365 women behind bars. On the same day in 2002, there were 273 women in jail.

The study suggests that sentencers sometimes send women to prison to receive help not available in the community.

Community services are so unable to meet the basic needs of women offenders with drug problems, and so many other problems, that incarceration becomes an easier option, according to the report.

"Could this be one of the underlying reasons why the female prison population in Scotland has been (increasing), and continues to increase?"

In his latest report on Cornton Vale, Scotland's only women's prison, Dr Andrew McClellan, the chief inspector of prisons, concluded that, of the inmates, 98% had drug addiction problems, 80% had mental health problems and 75% had a history of abuse and very poor physical health.

Mental health and addiction problems characterise these women, and many experts claim the experience of prison is likely to increase their drug-taking and offending. Many of them are still being imprisoned for minor offences. Seven out of 10 prison sentences passed on women are for six months or less. In 2004-5, more than 400 women were sent to prison for failing to pay a fine.

"We are locking up increasing numbers of increasingly damaged women," Dr McLellan said "It is desperately sad. You see it not just in their eyes but on their arms, which are deeply scarred from a long history of self-harming."

HAPPY FAMILIES?

Capitalism distorts every human relationship. Even the tightly knit family unit, which you would imagine to be a bulwark against the ravages of capitalism, is not immune. A two year study conducted by the National Centre for Social Research and King's College, London has come up with some horrendous statistics. "Elderly people must have the same legal safeguards as children, experts said yesterday after research found that 350,000 pensioners were abused in their own homes by carers last year. ...However there was also widespread evidence of theft, fraud and misuse of power of attorney by other family members." (Times, 15 June) RD

The Dumbing Down of Doctors

In a previous post Socialist Courier high-lighted how the Romanian health service was reducing costs by dispensing with cancer specialists . Couldn't possibly happen here many readers may have said .

But we now read a government plan to cut senior staff in paediatric wards and neonatal units and replace them with trainee doctors will put infants at risk, doctors and patient groups have warned.

At the moment most paediatric wards have up to seven specialist paediatric senior house officers (SHOs) - doctors with up to four years' experience. Most could be replaced under Modernising Medical Careers. In future, trainee doctors with one or two years' experience will spend four months in paediatrics before moving on to another specialism, and would not necessarily have any interest in that area of medicine.
45,000 babies are born prematurely each year. Babies born at 23 weeks have a 17 per cent chance of survival and require expert medical support, while half of all babies born before 30 weeks suffer from apnea, which causes them to stop breathing.

Senior medical staff warned yesterday that inexperienced trainees are unsuited to difficult procedures such as putting an intravenous drip line into a baby's arm or treating vulnerable premature babies.

A senior London doctor said the impact on the care of vulnerable young children and premature babies could be disastrous. "Paediatrics is a specialism and, to be safe, people must be trained," the doctor said. "If things go wrong during pregnancy, you would call to the delivery an Senior House Officer who would deal with any complications. There is a big difference in a critical situation between an SHO and a trainee. These changes could result in the death of a baby or brain damage... "

Remedy UK , a 13,000-strong doctors' campaign group , accused the Department of Health of "dumbing down" doctors with MMC. "It used to take 21,000 hours of training to become a consultant but this has been reduced to 6,000. There is a move towards dumbing down the system rather than aiming for excellence," said a spokesman.

And here we read what it now feels like to be a doctor .
"...professionalism is being reduced to being a bit like just being on a production line."

First , capitalism made medicine and health into a business , run by accountants , now capitalism turns it all into a factory .

Hypocrisy

BAE Systems will pay Lord Woolf, the former Chief Justice, up to £468,000 over the next nine months to chair an inquiry into the defence company's business ethics . Lord Woolf said he would be paid £6,000 a day for his work on the inquiry, which is likely to consume two days a week for the next six to nine months.

Well , the Socialist Courier will save BAE time and money .

Ethically , the arms industry are no better than glorified gun-running murderers . A corrupt , immoral business and a bane on civilisation , that is out to get a quick and extremely lucrative profit from war and the fear of war .

Lord Woolf's role is to place a cloak of respectabilty around a killing industry .

BAE has no ethics .