LEARNING SLOWLY

"The number of soldier leaving the Army has increased every month since troops began fighting Afghanistan, according to figures from the Ministry of Defence. In 2006, 11,310 soldiers left the Army. By 31 December last year, the number had risen to 12,520." (Times, 22 February) RD

A CYNICAL SYSTEM

Oscar Wilde once described a cynic as "a man who knows the price of everything but the value of nothing". The following news item shows what a cynical system capitalism is.
"A Russian businessman paid a record price on Wednesday for an 18th century violin that had not been played in public for more than 70 years. Maxim Viktorov, who bought the instrument by master violin maker Guiseppe Guarneri, paid "well in excess" of the previous world auction record for a musical instrument of $3.54 million, auction house Sotheby's said." (Yahoo News, 13 February)
When Guarneri fashioned his violin he naively must have thought it would be played to delight others not lie silent in a bank vault to increase in price. Inside capitalism many works of art are locked up by millionaires who know the price of everything but the value of nothing. RD

MORE CANCER FOR THE POOR

"Three years ago, an international treaty took effect that was designed to help developing countries resist aggressive marketing by big tobacco companies. The idea was that if a large number of countries committed themselves to the same tobacco control policies — including bans on all advertising and promotion — they would be better able to resist pressure from multinational tobacco companies and their own domestic tobacco sellers. Unfortunately, the governments of low- and middle-income countries have not followed through. With tobacco use declining in wealthier countries, tobacco companies are spending tens of billions of dollars a year on advertising, marketing and sponsorship, much of it to increase sales in these developing countries." (New York Times, 19 February) RD

SITUATIONS VACANT

"Ireland, a country that used to export its Catholic clergy around the world, is running out of priests at such a rate that their numbers will have dropped by two thirds in the next 20 years, leaving parishes up and down the land vacant. ...One hundred and sixty priests died last year but only nine were ordained. Figures for nuns were even more dramatic, with the deaths of 228 nuns and only two taking final vows for service in religious life." (Times, 27 February) RD

WHEN RELIGION RULES

"Prosecutors in Saudi Arabia have begun investigating 57 young men who were arrested on Thursday for flirting with girls at shopping centres in Mecca. The men are accused of wearing indecent clothes, playing loud music and dancing in order to attract the attention of girls, the Saudi Gazette reported. They were arrested following a request of the Commission for the Promotion of Virtue and Prevention of Vice. The Mutaween enforce Saudi Arabia's conservative brand of Islam, Wahhabism. Earlier in the month, the authorities enforced a ban on the sale of red roses and other symbols used in many countries to mark Valentine's Day. The ban is partly because of the connection with a "pagan Christian holiday", and also because the festival itself is seen as encouraging relations between the sexes outside marriage, punishable by law in the kingdom." (BBC News, 23 February) RD

SCIENCE AND THE VATICAN

Professor Stephen Hawkings: "At a conference on cosmology at the Vatican, the Pope told the delegates that it was OK to study the universe after it began; however, they should not enquire into the beginning itself, because that was the moment of creation and the work of God. I was glad he didn't realise I had already presented a paper at the conference investigating precisely that issue: I didn't fancy the thought of being handed over to the Inquisition like Galileo." (Daily Telegraph, 26 February) RD

A MAD, MAD WORLD (2)

"A Blackberry may be a status symbol, but as the high-tech devices become ever more ubiquitous, users are increasingly looking for ways to make theirs stand out. ...For the pragmatic, Otter Box makes cases featuring durable rubber and polycarbonate that look cool and provide great cushioning ($100; www.otterbox.com). Louis Vuitton has developed the Okapi Case GM, a spacious carrier made of the company's iconic Damier canvas ($420; www.louisvuitton. com). Just in time for Valentine's Day, Goldstriker International is unveiling a line of luxury leather and gold- or platinum-plated cases ($1,560; www.goldstriker.co. uk). For women, Violet May in London makes a stylish gold python-print BlackBerry purse, with a deep inner sleeve for the device, plus room for money, business cards and even a passport ($390; www. violetmaylondon.com). But nothing is more extravagant than the version from Case-Mate, made from 15 grams of gold and encrusted with 3.5 carats of diamonds. Just be sure you don't drop it down the stairs ($20,000; www.case-mate.com)." (Newsweek, 18 February) RD

IT’S A MAD, MAD WORLD

"A penny saved is not necessarily just a penny earned: One man's collection of rare American cents has turned into a $10.7 million auction windfall. The collection of 301 cents featured some of the rarest and earliest examples of the American penny, including a cent that was minted for two weeks in 1793 but was abandoned because Congress thought Lady Liberty looked frightened. That coin and a 1794 cent with tiny stars added to prevent counterfeiters each raised hundreds of thousands of dollars, according to the Dallas-based auction house Heritage Auction Galleries, which held the sale in Long Beach on Friday night." (Yahoo News, 16 February) RD

Work Rage

Stressed out workers are increasingly suffering from 'work rage', according to a new study.

Four out of five people surveyed admitted they had lost their temper with a co-worker, for not pulling their weight in the office. More than two thirds of the 1,200 questioned said verbal abuse was common in their office.

"If you are one of those people who throw their Blackberry at the wall because you are frustrated at work, or snap at a co-worker while discussing how much you hate your job, then you are not alone."

Firms were urged to encourage staff to take regular breaks, and have a proper lunch in a bid to reduce stress.

Uh-huh , we can all see that happening in these days of speed-ups , unpaid overtime and the extraction of the last bit of labour-power from staff .

A NASTY SYSTEM

"Three British bankers have been sentenced to 37 months in prison each for their role in a multi-million pound fraud linked to US energy firm Enron. David Bermingham, Gary Mulgrew and Giles Darby - the so-called NatWest Three - have been sentenced after admitting to wire fraud. ... Last November, the three, all 45, admitted to defrauding former employer NatWest out of $19m (£10m). ... The men admitted to conspiring with ex-Enron employees Andrew Fastow and Michael Kopper, who are already in prison, to defraud NatWest of $19m and then split $7.3m between themselves. Charges brought by prosecutors argued that the three men had advised NatWest to sell part of a firm, Swap Sub, owned by Enron for less than it was worth. The men then left the bank and bought a share in the Enron-owned company, before selling it on at a higher price for a profit. ...Enron, once a hugely successful energy firm, collapsed in 2001 with debts of $31.8bn (£18.3bn)." (BBC News, 22 February) RD

DID THE EARTH MOVE FOR YOU?

"An Israeli lawmaker said Wednesday that several earthquakes felt in Israel recently were a consequence of gays and the parliament's acceptance of them. Shlomo Benizri of the ultra-Orthodox Jewish Shas Party, said the way to stop the tremors was for parliament to reverse its trend of liberalizing laws concerning homosexuals. Two quakes originating in neighbouring Lebanon shook much of Israel last week, the first coming two days after Israel's attorney general ruled that same-sex couples could adopt children. ..."Why do earthquakes happen? One of the reasons is the things to which the Knesset (parliament) gives legitimacy, to sodomy," Benizri said during a parliamentary debate on earthquake preparedness. A cost-effective way of averting earthquake damage, he added, would be to stop "passing legislation on how to encourage homosexual activity in the state of Israel, which anyway brings about earthquakes." (Time, 21 February) RD

THE MODERN GAME

Once upon a time football news would be about such things as goals and league points, nowadays it is more likely to be about investments and financial returns. "Arsenal has seen its half-year profits rise 54%, boosted by the latest Premier League television rights deal and the success of its Emirates Stadium. The north London football club said its pre-tax profit totalled £20m for the six months to 30 November 2007, compared with £12.6m a year earlier. Arsenal's broadcasting income was up £6.5m at £24.3m, while match day income had risen by more than £3m to £41.4m. ...Earlier this month an investment firm co-owned by Russian billionaire Alisher Usmanov revealed it had increased its stake in Arsenal to 24%. Red and White Holdings previously had about 23% of the club's shares and have been reported to have a goal of owning at least 25%." (BBC News, 22 February) RD

CAPITALISM AND EUPHEMISM

Capitalism has got to have euphemisms to cover up the sordid nature of the system. Thus children, maimed by napalm bombs is called "co-lateral damage" and troops blowing up their own troops is called "friendly fire". A recent addition to this sorry catalogue is "extraordinary rendition". "David Miliband has admitted two US 'extraordinary rendition' flights landed on UK territory in 2002. The foreign secretary said in both cases US planes refuelled on the UK dependent territory of Diego Garcia. He said he was "very sorry" to have to say that previous denials made in "good faith" were now having to be corrected. The renditions - the transport of terror suspects around the world for interrogation - only came to light after a US records search, he said." ..."Amnesty International UK director Kate Allen said extraordinary rendition was "a polite way of talking about kidnapping and secret detention". (BBC News, 21 February) RD

Keeping a roof over ones head

House prices are now six times the salary of the average Scot, according to new government figures revealed yesterday.
The statistics show that the average house price of £137,192 is running out of reach of the £22,261 median salary.

First-time buyers with little or no savings are being faced with debilitating interest rates as the industry recoils, and many young people can't buy without parents' help. The pressure on those with low incomes was highlighted by one case where a couple with a joint income of £26,000 were paying £700 a month in mortgage repayments.

Don Fleming, of the Mortgage Advice Network said in one instance a lender was offered a 95% mortgage and as soon as the papers were signed a further 30% loan was offered as a top-up because the person was then classed as a property owner. He said: "Lenders were calling it flexibility, but what they mean is they are pulling the wool over society's eyes. Government should have stepped in to stop people receiving large unsecured loans."

WORDS OF WISDOM

Steve Jones, Professor of Genetics at University College of London: "The idea that life began by magic a few thousand years ago is entirely absurd - yet believers, of whatever persuasion, insist on its truth. This does no harm to science, but to my secular eyes seems to do immense damage to religion itself." (Daily Telegraph, 26 February) RD

THE AMERICAN DREAM?

"More American homeowners are mired in negative equity than at any time since the Great Depression of the Thirties ... Close to 9 million Americans, or 10.3 per cent of homeowners in the US, now owe more on their mortgages than their house is worth, according to the latest figures from Moody's, the ratings agency, as inventories of unsold homes continue to pile up in an already over-supplied market." (Observer, 24 February) RD

A MAD, MAD WORLD

"Just a few weeks ago, we reported with patriotic fervour the British businessman who paid almost £500,000 for the licence plate "F!". Stout, upstanding, well-adjusted fellow. But now an Abu Dhabi property magnate has smashed the world record for the most expensive number plate, paying - ready for this? - £7.1 million on the plate '1'. Cash-addled fool. "I bought it because it's the best number," said Saeed Khouri at the auction in the United Arab Emirates. "I bought it because I want to be the best in the world." (Top Gear, 18 February) RD

A WASTEFUL SOCIETY

"President Bush asked Congress on Monday for $515 billion for military spending, an increase of 7.5% compared with last year. Among the major factors driving the increase is the Pentagon's plan to bolster the ranks of the Army and Marine Corps, forces stretched thin by two wars. The budget calls for an $8.7 billion hike to $20.5 billion in 2009 to add 7,000 soldiers and 5,000 Marines. (USA Today, 4 February) RD

Tesco move to the Cayman Islands

Tesco has created an elaborate corporate structure involving offshore tax havens which enables it to avoid paying what could be up to £1bn of tax on profits from the sale of its UK properties. The complex new structures uncovered by a six-month Guardian investigation include a string of Cayman Island companies. These are being used by the supermarket giant as it proceeds with its announced programme to sell and lease back £6bn worth of its UK stores.
The stores are being sold to external investors providing Tesco with a big one-off gain which, ordinarily, would be liable to tax, while allowing it to remain in the stores and pay rent to the new owners. The first two deals, worth £445m and £650m, have already used the companies set up in the Cayman Islands - where the rate of corporation tax is zero - allowing Tesco to avoid tax on about £500m profit. Large corporations are increasingly developing strategies to cut tax bills and Tesco is not alone in its tax planning.
The Guardian's analysis of Tesco's accounts over the past five years also shows that the company has paid an effective tax rate of just over 20% on the rest of its profits, at a time when the UK corporation tax rate is 30%.

The investigation has found:
· New company structures set up by Tesco to own stores that are being sold and leased back mean that 99.9% of the company that owns the stores could end up being held offshore. Tesco would be liable to pay UK tax on only the 0.1% of its profit on the sale of the stores held in the UK. Tesco's first two property deals, worth about £1bn, have used this structure and will avoid tax on £500m of profits.
· Although its accounts for the past five years report an average rate of corporation tax of 29%, the actual rate of tax Tesco paid, according to its cash flow statement, is closer to 20%. This is on profits separate from the property deals. UK corporation tax is 30%.
· Tesco has sold its 37 stores in the first two sale and leaseback deals at twice the book value that is included in its accounts, making a profit of about £500m on the £1bn of stores sold. If it achieves the same rate of return on all its disposals as expected, its share of profits from property sales would come to about £3bn. The UK corporation tax due on this would be as high as £1bn, but the retailer could avoid paying this because of its offshore structure.
· A string of other company structures leading to the Cayman Islands have been set up and more of Tesco's properties have already been transferred to them so that they could be quickly activated for the next tranche of store sales.

Tesco Red (GP), which acted as general partner in the £445 million sale-and-leaseback partnership with the British Airways pension funds did indeed pay UK tax on its share of income from ongoing business after the deal. Tesco Red (GP)'s UK income for the period to February 28 2007 was just a measly £832 and its UK tax bill was £494.

Tesco claim since they pay corporation tax, business rates, employer's national insurance contributions and other taxes. Combined with the approximately £750m of PAYE tax, employee's NIC and net VAT that we collected in that financial year, this means they are in the top 10 taxpayers in the UK. We wonder how their rival supermarkets and competitors feel - or are they up to the same tax avoidance [ tax avoidance rather than tax evasion or tax cheating, of course ]



Nearly a third of the UK's 700 largest businesses paid no corporation tax in the year 2005-6. A further third paid less than £10m each, according to figures from the National Audit Office released last year.

Charity begins at home

An urgent appeal for food for families and individuals in need has been made by a Highland charity. Blythswood Care, known for transporting relief aid to Eastern Europe, said there has been an increased demand in the Highlands over the winter months.

It warned that it had already helped 340 people this year and that stocks were running low. The Highland Food Bank gives a three-day supply of foodstuffs to households in financial crises.

Co-ordinator Lorna Dempster said that the Highland Food Bank helped more than 1,700 people in 2007 - an increase of 70% over the previous year, when 1,000 clients were helped