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