not watered down

Five bosses at publicly owned Scottish Water have shared in a one-off bonus pay-out of more than £450,000. Chief executive Richard Ackroyd was handed £78,900 as part of the deal, meaning he took home £420,000 in total last year. Finance chief Douglas Millican and asset management director Geoff Aitkenhead both got bonuses of £103,000 to top up their total pay of £230,000. Commercial director Chris Banks was paid £95,481 as part of the scheme, on top of his £217,000 salary, while customer service delivery director Peter Farrer, who was paid £211,000, got a bonus of £72,744.

"It's simply obscene for five directors of a public company to trouser half a million pounds between them in bonuses on top of an existing pay packet that's already two and a half times that. Public services are being closed down while workers face pay freezes and compulsory redundancies, yet this gilded elite make more in a month than most people make in a year." Green Party co-leader Patrick Harvie said.

feather-bedded and gold-plated

Ian Bell, the Herald's columnist has written a useful article about the attcks on state workers pensions. He points out that public sector pensions account for 1.5% of GDP. By 2027-28, the percentage is projected to rise all the way to an “unsustainable” 2%. It also takes no account of the effect of shedding half a million jobs thanks to George Osborne’s 2010 spending review.

"A reformer was invariably someone who wanted to make a bad situation better. Not any more. In the mouths of politicians these days, reform is a word meant to give credibility to changes that are liable to be unpleasant, unpopular, or both...When you are told you will have to work longer, pay more and receive less in old age for your pains, it’s little comfort to hear that your lot has been “reformed”..."

Negotiations are at an end even as the talking continues is the position, it seems, of Danny Alexander, chief secretary to the Treasury, who will defend his “fair and reasonable” proposals, of the pre-determined outcome. No pensions until the age of 66; employee contributions increased by at least 3%; and a less generous settlement come retirement.

The unions could kick up a fuss, of course. But they should heed Vince Cable, business secretary: if they persist, he might feel the need to "reform" industrial relations law concerning strikes.

Summarised, the message might be this: don’t bother to negotiate, don’t bother to protest. As Mr Alexander is happy to explain, if opposition to "reform" continues, his next offer is liable to be worse.

Why should anyone [except MPs ,of course] be feather-bedded with a gold-plated pension in these hard times, when private sector workers enjoy no such luxuries? It amounts to this: private sector workers have been screwed, so it’s only fair that you, too, should be screwed.

The TUC says most public sector workers receive pensions of between £5000 and £8000 annually. The PCS union claims the average retired civil servant gets £4200.

Lord Hutton’s review of arrangements proceeded on the basis that half of pensioners receive less than £5600 a year and 10% less than £1000. His averages (for 2009-10) were as follows: local government, £4052; NHS, £7234; civil service, £6199; teaching, £9806; armed forces, £7722. Only 10% of retirees had pensions of £17,000 or above. These tended to be retired policemen and fire officers, but in those professions employee contributions – 8.5% to 11%, depending on the scheme – were far higher than most. 1% of workers in receipt of £37,000 a year. Two-thirds of them were doctors and consultants, and most of those could have bought far larger pots had they pursued private medicine.

If anything has been learned from the Coalition Government it is this: the more they get, the more they demand. They cite the national interest. But by what bizarre logic did the cost of Britain’s public sector come to be the reason and cause for underwriting criminal behaviour in international banking? Mr Alexander’s reforms are intended to raise billions, not improve the life of a single underpaid council worker contemplating retirement.

who owns the north pole - part 32

Efforts are being made to sign a common treaty on the Arctic citing the kind of treaty on the Antarctic. But experts invariably pointed out that the situation in the Arctic is altogether different. The Antarctic is no man’s land, and there is no economic activity under way there. Meanwhile in the Arctic, some countries border on the ocean, and there are two-way treaties, and international law provisions regulating the situation. The European Union can access the Arctic Ocean via Greenland only. The five countries that border on the Arctic Ocean are the United States, Canada, Denmark, Norway and Russia. Denmark is an EU member-nation that owns Greenland, - the world’s biggest island. Even the countries with no immediate access to the Arctic Ocean, such countries as Japan and South Korea, technologies are being developed full steam to produce oil and gas from under ice cover.

The Arctic shelf is the area that contains the greatest oil and gas deposits in the world. Oil and gas giants are clearly not about to lose hundreds of billions of dollars in profits. But once power resources are mined, they should be delivered to consumers. The development of technologies, high mineral resource prices and China’s growing market are but some factors that make one think of new ways of transportation. The change of climate is being followed by a major change in logistics. Ice melting in the Arctic opens new ways of navigation, first of all, the Northern Sea Route, which is the shortest link between Europe and Asia, and also between Europe and the US West Coast. The route runs parallel to Russia’s northern coast, so it is likely to become an effective alternative to the Suez Canal some time soon.

In 2009, 70,000 tons of iron ore were for the first time transported to China along the Northern Sea Route, in just 18 days, or half the time that it would take the delivery via the Suez Canal. The suppliers saved 300,000 dollars worth of fuel. In 2011, Russia’s biggest shipping company, Sovkomflot, is due to send 15 ships along the route, which is navigable even in winter, if transport vessels are escorted by icebreakers.

from here

LAW AND DISORDER

We are used to reading of gallant and dedicated police officers rounding up criminals and packing them of to prison, but what are we to make of this news item? "Members of Orlando Food Not Bombs were arrested Wednesday when police said they violated a city ordinance by feeding the homeless in Lake Eola Park. Jessica Cross, 24, Benjamin Markeson, 49, and Jonathan "Keith" McHenry, 54, were arrested at 6:10 p.m. on a charge of violating the ordinance restricting group feedings in public parks. McHenry is a co-founder of the international Food Not Bombs movement, which began in the early 1980s." (Orlando Sentinel, 2 June) Feeding the homeless? What a despicable crime. Truly capitalism is a crazy society. RD

A DOG'S LIFE

From time to time newspapers run obituaries of famous men and women but we had one recently for a dog! It was a rather special mutt though. You see it was a millionaire. The Maltese dog called Trouble had been left $12 million by the New York hotel mogul Leona Helmsley. "Legal battles ensued and a judge cut Trouble's inheritance to $2 million. She was placed with Carl Lekic, the general manager of the Helmsley Sandcastle Hotel, in Florida, who had played with her many times. He was paid $5,000 a month for the privilege. He told the trustees that Trouble required $100,000 a year for a security guard (the dog had received many death and kidnapping threats). $18,000 for vet costs, $1,200 for food and $8,000 for grooming." (Times, 10 June) All this insanity is happening in a world where millions are trying to survive on $1.25 a day.RD

Fear and loathing in Glasgow

Taken from here

In Glasgow a stabbing occurs every six hours - and many more go unreported. Survey after survey, from the World Health Organisation to the United Nations, identifies Glasgow as one of the most violent cities in western Europe. Among young males aged between 10 and 29, the rate of homicide is similar to Argentina, Costa Rica and Lithuania. Alcohol-related death rates are three times the British average while Scots have one of the lowest life expectancies in Europe. Three-quarters of all weapons crimes in Scotland occur in the Strathclyde policing district in and around Glasgow. Between 5000 and 6000 are recorded each year and more than 2200 hospital beds are taken up with the victims.

The nightmare is constant, a cycle of violence that each weekend sees the alcoholic and drug addicted, chronically unemployed and angry, the young and the old, take to the streets armed with knives, machetes and even samurai swords to battle the demons of disillusionment - and each other.

"I know it sounds like I'm talking about savages but we can be called to a gang fight and there'll be fathers n' grandfathers shouting 'C'mon, get him'. This is what we are dealing with in West Scotland." - Inspector Dougie Stevenson, head of the Strathclyde Gangs unit.

Plain-clothes police officer, Barry Inglis - "...you can see it everywhere; generations have been doing it, grandfathers, fathers, sons, grandsons. We hear it all the time when we bring kids in: 'I did it when I was a boy, what's the problem?'''

Dr Marjorie Black, a forensic pathologist with the Scottish Crown office "Most of it is known to be gang related: there is this culture of defending turf … in Glasgow, if you stray into the wrong area, you are seen as fair game."

The Strathclyde police mapped 167 gangs, all guarding territory and turf rather than drugs - some covering just a few streets and laneways. The very existence of gangs for the kids of dysfunctional and distressed families offer a sense of belonging and security.

Detective Chief Superintendent John Carnochan of Strathclyde's Violence Reduction Unit "The violence we see here is of such intensity that it's almost unique in western Europe … accepted as legitimate, a community norm, something that cannot be changed...

Says Dr Christine Goodall from Medics Against Violence: "Research shows us that that if you live in a deprived area in Glasgow, you were three times more likely to have a facial injury or trauma. If alcohol is involved, the likelihood rises and is seven times higher than if you lived in a more well off neighbourhood. We were seeing people in their 20s with cirrhosis of the liver, kids of 14 who would take hours to be stitched up and when you tell them the scar would be there for life, they'd say it was OK … for them it was a badge of honour..."

Carnochan also explains "The young men's faces are scarred from the conflict but these scars label them not as the victims they are, but as fighters, violent men. This means they can't get jobs, find a relationship. Functioning in a society that is fearful of violence is difficult, too…we shouldn't forget that either."

Socialist Courier says that the youth of the housing schemes are right to think there is no hope within the present system but wrong to sit back and wallow in its excesses. Socialists say that society can be better than it is. Under capitalism tackling the “causes of crime” means nothing other than more empty words and broken promises, fuelling another, destructive, cycle of cynicism. Only socialism, where a real community of interests can be established and will resolve the destabilising and dehumanising days of capitalism. When community relationships break down, when drink and drugs to numb the pain of the daily rat-race becomes the norm, then society is in serious trouble.

See also the Socialist Standard article on knife and gun crime.

THE CLASS DIVIDE

When socialist speak of class division we are often accused of being outdated, but here are recent figures that prove our point. "Last year was another good year for millionaires - though their pace of growth is slowing. According to a new report by Boston Consulting Group out today, the number of millionaire households in the world grew by 12.2% in 2010, to 12.5 million. (BCG defines millionaires as those with $1 million or more in investible assets, excluding homes, luxury goods and ownership in one's own company). The U.S. continues to lead the world in millionaires, with 5.2 million millionaire households, followed by Japan with 1.5 million millionaire households, China with 1.1 million and the U.K. with 570,000. ...The most important trend, however, is the global wealth distribution. According to the report, the world's millionaires represent 0.9% of the world's population but control 39% of the world's wealth, up from 37% in 2009." (Wall Street Journal, 31 May) Yes, startling though it may seem - less than 1% of the world's population own 39% of the wealth. RD

Who owns the North Pole - Part 31

No country owns the geographic North Pole or the region of the Arctic Ocean surrounding it. The surrounding Arctic states that border the Arctic Ocean — Russia, Norway, the United States, Canada and Denmark (via Greenland) — are limited to a 200 nautical miles economic zone around their coasts. Nations will and can fight.

Canada is investing $100 million over five years (2008-2013) in its new Geo-mapping for Energy and Minerals (GEM) program to provide the geoscience knowledge necessary for private sector exploration companies to guide investment decisions.

Norway’s foreign minister has been quoted as saying regular military flights by the Russians up and down Norway's coast had helped to justify the purchase of four new F-35 Joint Strike Fighter combat aircraft to the Norwegian public.

http://thenelsondaily.com/news/issues/next-battle-ground-oil-rich-arctic-region-11940

The poor die younger in Glasgow

Average life expectancy for both sexes in greater Glasgow is lower than in Albania and nearer to that of the Palestinian territories than to the wealthier London boroughs. Residents of Kensington and Chelsea will live more than a decade longer than those from Glasgow.

Age Concern UK expressed regret at the continuing variations. Director Michelle Mitchell said: "As the state pension rises to 66 by 2020, it is people living in poorer areas with lower life expectancies who will see their retirements cut short."

“In just four years the difference between the life expectancy of women in Notting Hill and those in Glasgow has increased by two whole years,” said TUC chief, Brenden Barber in response to the growing inequality. “Women living in the poorest areas will lose significantly more of their retirement years than those living in wealthy Britain.”

Dr Simon Szreter, professor of history and public policy at Cambridge University, said: "Life expectancy has a longstanding correlation with social class and income. The rich have got richer and the poor have stayed the same."

A plague upon both houses

With a referendum looming in the future, once again Socialist Courier declares its policy:-

The world-wide working class has a common interest, to end its exploitation and solve its problems, to join together to establish a world without frontiers in which the resources of the planet will have become the heritage of all, so that there can be production to meet needs and not for profit. One world, one people, where cultural differences will still be celebrated, but where we’ll all be citizens of the world. It is clear, then, why socialists don’t take sides in the debate about whether it is better for workers there to be ruled from Edinburgh or from London.

The SNP argues that the problems facing workers in Scotland are due to “Westminster rule”. If only there was an independent Scotland, they say, separate from the rest of Britain, then there would be full employment, higher wages, job security, better state benefits, a healthy health service and all the other things politicians promise at election times. But it is absurd. This would be a purely political constitutional change which would leave the basic economic structure of society unchanged. There would still be a privileged class owning and controlling the means of production with the rest having to work for them for a living. An independent Scottish government would still have to operate within the constraints of the world capitalist system. It would still have to ensure that goods produced in Scotland were competitive on world markets and that capitalists investing in Scotland were allowed to make the same level of profits as they could in other countries. In other words, it would still be subject to the same economic pressures as the existing London-based government to promote profits and restrict wages and benefits.

Our opposition to the SNP should not be interpreted as support for the pro-union parties. We are just as opposed to them. A plague on both their houses is what we say.

THE UNCARING SOCIETY

There are many examples of how heartless capitalist society is. Millions starving while food is destroyed to keep up prices, people being denied the basics of human survival while billionaires exult in their obscene wealth. However even by capitalism's heartless treatment of the poor and vulnerable the following must rank as amongst the most bestial."The Government has ordered an urgent review into the "inhumane" abuse of people with learning disabilities at a residential hospital filmed by BBC Panorama. Police arrested four people after secret filming showed vulnerable adults at Winterbourne View, in Bristol, being punched, slapped and taunted by carers." (Daily Telegraph, 1 June) Needless to say all these victims came from families who could not afford the lavish treatment enjoyed by the owning class.RD

poverty porn

Last year Socialist Courier posted about The Scheme now the Onthank housing scheme in Kilmarnock, featured in the BBC Scotland's documentary series The Scheme has become a tourist destination.

At one point residents erected a sign charging "all scheme tourists £1 entry" - with a view to erecting a children's playground with the proceeds (only for East Ayrshire Council to haul it down within hours as illegal "fly-tipping" and as one resident said the fastest response to dumping "rubbish" ever recorded in the scheme.)

"The reason we put up the first sign is you will pay to go into a zoo or safari park, and they are coming here likes it's a safari park but with human beings on show. That's why we put up the sign, as a joke," said Karen McLean

Author and social commentator Peter York said it was understandable that the television programme would draw in spectators: "...the white working class has become the one group that can be baited and no-one complains as they would any other social class, and you have a situation where people want to see these people as they would animals in a zoo."

The Scotsman commentator Mark Smith writes "The characters in The Scheme are the alter ego of the filthy rich. They are the casualties of our capitalist society, the flawed consumers, those who, through little fault of their own, cannot step up to the plate at the altar of the free market. Yet still we deride them for reaching out to grasp some of the spoils from the rich man's table: the mobile phones, the 40in televisions, the designer gear." He goes on to say "To identify the human misery apparent in The Scheme as a symptom of the unequal nature of society is uncomfortable. It requires that we look at ourselves and at our positioning within that unequal society. It is far easier to cast judgments, to bemoan the depravity of the poor."

GROWING OLD DISGRACEFULLY

Members of the working class suffer all sorts of indignities in their working life but it is when they grow old and infirm that capitalism really rubs their nose in it. "Failures in nursing care for elderly patients have reached the point at which doctors are prescribing water to make sure it is provided, the health regulators say. Inspections at 12 hospitals by the Care Quality Commission found that three failed to meet basic standards of dignity and nutrition, and that three more raised concerns. This, according to Dame Jo Williams, chief executive of the CQC, was "fairly representative" of the NHS, with only half of hospitals meeting essential standards of dignity and nutrition for older people." (Sunday Times, 29 May) After a lifetime of producing surplus value for the owning class many workers are condemned to eke out an existence in sub-standard nutrition and toilet conditions.RD

THE MIDDLE CLASS MYTH

In reviewing Owen Jones's book "Cavs: The Demonization of the Working Class", the journalist Carol Midgely makes some valid points. "When Margaret Thatcher came to power in 1979 more than seven million people earned a living in manufacturing. Now that figure is about 2.83 million. Much easier to blame the unemployed than the forces that caused the unemployment. The Thatcher experiment, Jones says, repositioned working class not as something to be proud of but something to escape from. Being middle class was the holy grail. The Dockers, miners, skilled factory workers and car workers of Britain have watched powerless as their jobs disappeared or were sent abroad." (Times, 28 May) Here we have Jones and Midgely making the usual mistake about class. All men and women who because of their lack of property are forced to seek work for a wage or a salary are members of the working class. Whether you work in a factory or an office whether you push a barrow or a pen if you have to seek a wage or a salary in order to live you are a member of the working class.RD

rich list 2011

The 2011 Sunday Times Rich List, published this weekend, reveals that the 1,000 wealthiest people in the country are now worth a combined £395.8 billion, equivalent to more than a third of the national debt.

The number of billionaires has risen from 53 to 73, while nine people have seen their fortunes rise by £1 billion or more during the past 12 months alone.

Britain’s 10 Largest Fortunes (in billions of pounds)

1. Lakshmi Mittal and Family Steel 17.5
2. Alisher Usmanov Steel, Mines 12.4
3. Roman Abramovich Oil 10.3
4. The Duke of Westminster Property 7
5. Ernesto and Kitty Bertarelli Pharmaceuticals 6.9
6. Leonard Blavatnik Industry 6.2
7. John Fredriksen and family Shipping 6.2
8. David and Simon Reuben Property 6.2
9. Gopichand and Srichand Hinduja Industry 6
10. Galen and George Weston Retail 6

AUSTERITY - FOR SOME

We live in austere times, there is a budget deficit and the government has been forced to make all sorts of unpopular public spending cuts. We have recently seen drastic cuts in local amenities like libraries, transport and social amenities. The government draw the line at some cuts though as seen from this announcement. "David Cameron has spent more than £680,000 of public money renovating Downing Street in the year that his government inflicted the biggest ever spending cuts across the public sector." (Guardian, 27 May) Times might be tough but one has got to have decent living accommodation, old chap.RD

NEVER STEAL ANYTHING....

Working class school children throughout the world are taught the mantra "never steal anything". So what are we to make of the following news item? "A former managing director of Nasdaq has been charged with insider trading by the US Securities and Exchange Commission. Donald Johnson stole client information, making $755,000 in illegal trades, it said. He admitted securities fraud in criminal charges brought by the Justice Department." (Times, 27 May) $755,000 is quite a haul so perhaps children of the capitalist class are taught not to get caught and just as important "never steal anything - small." RD

all at sea

How the other half live and more accurately how the 0.00002 per cent live. CRN Spa, builders of mega-yachts, estimates that there are just 1,500 people in the world wealthy enough to consider buying a boat from them. ( there is also, of course, the "ultra-mega yachts" of the type recently purchased by the Chelsea owner Roman Abramovich, the world's biggest, featuring two helipads and a submersible escape submarine.)

"I know the names of all our clients," says the boatyard's chairman, "They're not famous people. You won't have heard of them." But, chances are, in one way or another, money that was once in your bank account is now in theirs'.

A few years ago an American client arrived and had signed a contract to buy a 43-metre yacht within two hours, with a price tag of €25m (£21.6m). He had never owned a boat before. "He told us: 'The interiors, the colours, the finishes, I don't care. The only thing I care about is the safety of my dog, as the boat is a present for her.'" On boats you have big holes, big gaps, big open spaces where a dog might fall. In the end he spent over a million euros having the holes closed over with glass and netting.

One wife of an Eastern European gentlemen, apparently, spent €3.5m on Swarovski crystals, which were attached to everything. In the finished vessel, the great chandelier in the main dining room matched the flip-flops worn by guests. She also requested a real wood fire, right next to a silk and cashmere carpet that cost €750 per square metre.
One of CRN's yach
ts, Maraya, has been chartered several times by P Diddy (with an estimated wealth of only $475m, or £288m, he doesn't quite make the 1,500), at a cost of €400,000 a week.

1. 'Eclipse' 557ft Roman Abramovich Features a missile-detection system and a laser shield to hinder the paparazzi's cameras. It also holds the distinction of being the world's largest.
2. 'Dubai' 532ft Sheikh Mohammed bin Rashid Al Maktoum This floating palace has seven decks, with jacuzzis and a mosaic swimming pool. It can also support a nine-tonne helicopter.
3. 'Al Said' 508ft Qaboos bin Said al Said The Sultan of Oman's yacht has a heli-pad, a cinema and a concert hall which can accommodate a 50-strong orchestra.
4. 'Prince Abdulaziz' 482ft Saudi Royal Family The world's largest and most expensive yacht when it was built in 1984. Its luxurious lobby was inspired by that of the doomed Titanic ocean liner
.

BEHIND THE TV FANTASY

Every evening on the TV you can see programmes where some dastardly criminal is brought to justice by some ingenious detective. Every crime committed in these dramas is solved. It is all very satisfying, but of course it is a complete fantasy. "Just one criminal jailed for every 93 crimes. Just one criminal is jailed for every 93 offences committed, figures showed. A total of 101,500 offenders who were convicted last year were handed an immediate custodial sentence representing less than eight per cent of all those sentenced, according to the Ministry of Justice. But separate figures from the British Crime Survey show a total 9.5 million crimes were committed in England and Wales during the last 12 months." (Daily Telegraph, 26 May) As long as we have a property based society we will have crime, and despite the efforts of Inspector Morse, Taggart and Miss Marples the vast majority of them will go unsolved. RD

WHERE THE GREEN MOVEMENT FAILS

On the face of it the Green Movement has a lot of things in its favour. It would be difficult to find fault in their concerns about how the planet is being abused. Global warming, deforestation and pollution are real areas of concern for anyone who examines how modern society is developing. Where socialists would differ from green activists is in two major areas. Firstly in their analysis of what causes the problems and secondly what is the solution to the problems.

Quite often green activists make the assumption that the problems are caused by social ignorance and that secondly the solution can come about by a series of legal enactments that would save the planet from its present dangers. Socialists would repudiate such a simplistic analysis. Let us look at one of the major concerns of Greens and socialists alike - the deforestation of the Amazon area. "Deforestation in the Brazilian Amazon has increased almost six-fold since last year despite government promises to reduce the destruction according to data released yesterday. Satellite images obtained by the National Institute for Special Research reveal 595 sq km (230 sq miles) of deforestation in March and April of this year. Figures from the Brazilian government show a 27 per cent increase in deforestation of the world's largest rain forest from August to April." (Times, 20 May)

This deforestation is not caused by social ignorance. All major governments are aware of the problem, but they are also aware that in order to keep capitalist profits on the rise they must have timber from the Amazon and the clearing of the forest for the growth of crops and the rearing of cattle. "In 30 or so years, we have gone from zero to 400,000 heads of cattle," boasted Onofre, president of the local ranchers association. Nowadays everybody says we have to preserve the forest. But when we arrived nobody knew we had to protect anything we had to deforest. We chopped the trees down so we could feed our animals, our cattle." .... Back on his ranch, Onofre reflected on his hopes that Brazil's congress would approve a controversial bill altering the forest code and reducing the amount of rainforest Amazon landowners had to protect." (Observer, 22 May)

The local farmers and cattle raisers can heave a sigh of relief at the latest piece of news from their government. "Brazil's Chamber of Deputies has voted to ease restrictions on the amount of land farmers must preserve as forest. The amendment also grants amnesties for previous deforestation." (BBC News, 25 May)

The drive for more and more profits make it essential that the Amazon landowners continue their policy of forest clearance. The importers of timber, cattle and agriculture products also cry out for more deforestation. While the profit motive remains all attempts by the Green Movement to restrict the development of capitalism in the Amazon area is futile. Only the establishment of world socialism can stop this insidious destruction of our planet. RD