bankers cash in

Royal Bank of Scotland investment banking boss John Hourican pocketed £4.7 million yesterday as he exercised lucrative share options in the bank – after helping push through thousands of redundancies in the division last year.
Hourican’s sale of 17.6 million shares after exercising share options, at an average price of about 27p, comes after RBS’s global banking and markets division has made some 5,000 people redundant. This has been with the encouragement of the UK government as RBS has scaled back its investment banking activities to focus on UK lending. Recently, it emerged that Hourican received a total pay and awards package, including bonuses, of about £7.5m last year.

It came on the same day that Toby Strauss – insurance chief at Lloyds Banking Group, sold 1.2 million shares worth more than £380,000.

EUROPEAN CRISIS

An outsider often sees more of a situation than most of those involved at first hand do. Here is an example of a US observer's view of the present economic crisis in Europe. "Today, hundreds of thousands of people are living in campgrounds, vehicles and cheap hotel rooms. Millions more are sharing space with relatives, unable to afford the basic costs of living. .... Now, economists, European officials and social watchdog groups are warning that the situation is set to worsen. As European governments respond to the crisis by pushing for deep spending cuts to close budget gaps and greater flexibility in their work forces, "the population of working poor will explode," said Jean-Paul Fitoussi, an economics professor at L'Institut d'Études Politiques in Paris. (New York Times, 1 April) RD

Football Blues

Rangers and Portsmouth are not alone.

One-in-five clubs in the Football League (refers to the three divisions below the top flight - the Championship, League One and League Two) are in "poor financial health", according to a survey by administrators Begbies Traynor. Begbies Traynor are presently overseeing the administration of Port Vale FC.

"Many clubs are continuing to spend too much, principally on players' wages, as they always have done" it said.

Of 68 teams surveyed in those divisions, 13 have signs of distress such as serious court actions against them, including winding-up petitions, late filing of accounts and "serious" negative balances on their balance sheets. That 19% compares to just one per cent in the wider economy, the firm said.

"While Premier League clubs are guaranteed huge television money every year and some have extremely wealthy backers, there are signs of genuine financial distress among a significant number of football league clubs," said Gerald Krasner, a partner at Begbies Traynor. "The sales of season tickets for next season, many of which are paid for during April and May, could provide some short-term relief for struggling clubs, but it won't solve the underlying problems."

A FRIGHTENING FUTURE

An alarming advance in modern technology has been developed in Brazil. Children up to the age of 14 have had electronic chips implanted into their uniforms in the north-eastern city of Vitoria da Conquista. Authorities say the tracking devices will provide an easy way to combat truancy. "The students' whereabouts are fed into a central computer when school starts. Staff are informed immediately if the child is absent, and if any student is still absent 20 minutes after lessons begin, parents receive a text message to their phones. City education secretary Coriolano Moraes says the innovation, which cost the government $670 thousand to design, is aimed at helping parents. "We noticed that many parents would bring their children to school but would not see if they actually entered the building because they always left in a hurry to get to work," he told the Associated Press news agency." (Russia Today, 23 March) No doubt many dictators will be looking forward to obtaining this excellent method of surveillance to deal with their dissidents. Isn't capitalism a wonderful system? RD

A TRASH CAN SOCIETY

The assumption is often made that extreme poverty may exist in some backward Asian or African countries but that Europe is free from the worst examples of poverty. This is obviously not the case. "To see Gunther rummaging through trash cans in Berlin, you might assume he was homeless. But the 61-year-old is actually one of a growing number of pensioners looking to earn extra cash through bottle recycling. Significant numbers of financially destitute people are now resorting to collecting discarded glass and plastic bottles, which carry a redeemable cash deposit, as a means of supplementing their income. But whereas the majority of those collecting used to be the homeless, alcoholics and drug addicts, more recently it is Berlin's pensioners and long-term unemployed who are increasingly turning to the practice in order to make ends meet." (Der Spiegel, 23 March) Germany may be one of the most advanced capitalist nations in the world but that does not stop it from suffering from the same social problems as all capitalist nations. RD

Britain's '101 Wealthiest Asians 2012'

LN Mittal and his family continue to head the list at £13.5 billion.

The Hindujas, whose activities span from transport to oil, have seen their fortune improve further with a wealth of £9.5 billion during the year, up by £ 500 million, are second in the list.

Anil Agarwal chairman of Vedanta Group is third in the list with a fortune of £3.2 billion

Lord Swraj Paul chairman of Caparo and Chancellor of Westminster and Wolverhampton Universities is 7th in the list with a wealth of £675 million, up by £75 million from 201

Italian Inequality

The Bank of Italy reveals that the wealth of the country's 10 richest individuals equals that of Italy's 3 million poorest.

10% of the richest Italian families own 40% of net national wealth

THE SOCIAL SCRAPHEAP

After a lifetime of toil many workers imagine that at least their twilight years will be spent in some sort of retirement with ease and care - but if they happen to be ill they certainly won't. "Hospital wards caring for elderly patients have up to a third fewer nurses working on them than other wards, research suggests. A survey of almost 1,700 nurses for the Royal College of Nursing found staffing levels on older people's wards was significantly lower than those for other specialties and general medical admissions. Overall, wards for elderly patients had one registered nurse for every 9.5 patients compared with an average of one for every 6.7 patients. One third of the nurses questioned said the staffing shortages meant they were unable to help patients eat and drink." (Independent, 20 March) Having helped to produce all of world's wealth the old worker is condemned to the social scrapheap. RD

Fighting for Bangladeshi women in Glasgow

Women and men from UK Feminista took to the high street to protest against the exploitation uncovered in factories supplying Nike. The actions, taking place outside Nike stores in London and Glasgow. The demonstrations are a response to new research published by War on Want which has uncovered the systematic violations of workers’ rights in Bangladeshi factories supplying garments for Nike, Puma and Adidas.

All factories visited were illegally employing staff for more than 60 hours a week, and five of the six failed to pay the legal minimal wage. Eighty five per cent of Bangladesh’s garment workers are women. 1 in 10 workers experiencing sexual harassment. Many are refused maternity rights or simply fired when discovered to be pregnant.

Low paid jobs are consistently filled by women. Women lack other employment opportunities due to poor access to education, and are affected by entrenched gender stereotypes around what constitutes ‘women’s work’. These include assumptions around their primary roles as carers rather than breadwinners, stereotyping women as supplementary earners and so excusing the payment of low wages. In this way firms like Nike are able to profit from gender inequality through utilising a cheap, female labour force subsidised by stereotypes.

The protest was not asking for boycott. Neither did it aim to ladle guilt onto women as consumers over where they shop. Instead it was a protest in solidarity with garment workers in Bangladesh which aims to spotlight the ability of firms like Nike to reap huge profits relies on gender inequality and demanded that Nike takes positive steps to end this.

http://www.leftfootforward.org/2012/03/nike-exploitation-women-workers-bangladesh-uk-feminista-protest/

Less poor? But more hungry!

Indian government officials have argued against many sceptics that they have reduced poverty yet two thirds of the country's population is eating less than what is required.

According to the National Institute of Nutrition, an average Indian male of age 18-29 years and weighing 60kg needs 2,320Kcal per day if he does only sedentary work. The Planning Commission had adopted 2,400 Kcal (rural) and 2,100 Kcal (urban) as the minimum daily requirement norm.

There has been an actual declined from 2,153Kcal per person per day in the period 1993-94 to 2020Kcal in 2009-10 in rural areas and from 2,071 to 1,946 Kcal in urban areas according to the report of the National Sample Survey Organisation.

According to the NSSO report, protein consumption too has fallen from 60.2g to 55g per person per day in rural areas and from 57.2g to 53.5g in the urban areas between 1993-94 and 2009-10.

Average calorie intake among the poorest tenth of the population is just 1,619 Kcal in rural areas and 1,584Kcal in urban areas, reveals the NSSO report. The richest 10% of the population consumes 2,922 Kcal in rural areas and 2,855 Kcal in urban on an average.

http://timesofindia.indiatimes.com/india/Poverty-down-but-not-the-hungry/articleshow/12487352.cms

PORCHES AND POVERTY

African countries are often portrayed in the media as desperately poor but some of its citizens are extremely rich. Nigeria's super rich are no strangers to conspicuous consumption, and there's no better way to flaunt your wealth than by buying a brand new European sports car. "German car maker Porsche officially opened a new car dealership on Friday in the heart of Lagos' wealthiest district, Victoria Island, a place with one of the world's highest concentrations of millionaires. .... The oil wealth of Africa's biggest producer has made multi-millionaires of its elite in the past few decades, even while absolute poverty has increased to 60 per cent of the population." (Reuters, 21 March) RD

PROMISES AND PROFITS

The manufacturing giant Foxconn has pledged to sharply curtail working hours and significantly increase wages inside Chinese plants making electronic products for Apple and others. "The shift comes after a far-ranging inspection by the Fair Labor Association, a monitoring group, found widespread problems including at least 43 violations of Chinese laws and regulations, and numerous instances where Foxconn defied industry codes of conduct by having employees work more than 60 hours a week, and sometimes more than 11 days in a row. .... The monitoring group, which surveyed more than 35,000 Foxconn employees and inspected three large facilities where Apple products are manufactured, also found that 43 percent of workers had experienced or witnessed accidents, and almost two-thirds said their compensation does not meet their basic needs." (New York Times, 29 March) Promises from the capitalist class mean nothing, they will only invest their capital where it gets the biggest return. RD

Weir the people

The board of Weir Group has rewarded chief executive Keith Cochrane with a near-£1 million bonus and double-digit pay rise.

Cochrane received a £625,000 salary and £975,000 bonus as part of a £1.62m package, up from £1.26m the previous year.

Finance director Jon Stanton will receive a 5 per cent rise to £420,000 from next month. For last year Stanton received a £392,500 salary and £400,000 bonus as part of an £806,957 package, up from £732,573.

Legal and commercial director Alan Mitchelson, who is standing down at the forthcoming AGM, received a £344,127 salary and £350,000 bonus as part of a £708,584 package, up from £665,887.

GOOD AND BAD NEWS

Global warming may be bad news for Greenland's polar bears, wolves, musk ox and whales, but it could mean new economic opportunities for the capitalist class. Satellite images taken over the past several decades show the dramatic disappearance of ice. A study just published by scientists with the Potsdam Institute for Climate Impact Research shows that this ice could lose a fifth of its mass in the future. The weakening ice is making the island's rich stores of raw materials accessible. Along with uranium, zinc, iron ore, copper and gold, Greenland's ancient rocks also harbour large quantities of those minerals known as "rare earth". "Rare earth minerals are used in the manufacture of mobile phones, laptop computers, flat screens, fuel cells, LED lights, motors for electric cars and in laser technology. They provide the basis for entire high tech industries." (Die Welt, 21 March) Global warming may lead to disaster for millions of workers but it it is just another "economic opportunity" for the owning class. RD

Football democracy

One of Scottish football’s leading administrators has called for the game to accept that supporters matter more than television companies, and to rethink the balance between the demands of broadcasters and the interests of supporters.

Hibernian managing director Fife Hyland said the demands of broadcasters had been too easily allowed to outweigh the interests of supporters, particularly when it came to deciding kick-off times. “We know TV is important to Scottish football but it’s not the be all and end all,” he said.

For many of the Scottish football clubs , match-day receipts remain several times greater than income from broadcasting. For example, in their last published accounts, for the year to July 2010, Hearts revealed that their matchday revenues were more than two and a half times greater than their income from broadcasting. Their income from TV was £1.5million, while that from matches (gate receipts plus smaller associated items such as programme sales) was £3.9m. There is an even greater disparity across the city Hibs are understood to take in around four times more from match-days than they do from broadcasting.

The Old Firm, Rangers (presently insolvent) and Celtic dominate Scottish football. A new £80m TV contract with Sky and ESPN, is dependent on the provision of four Old Firm fixtures a season and shows the importance of Rangers and Celtic. The ten non-Old Firm clubs in the SPL want to change the league’s voting structure, which at present requires an 11-1 majority for substantial changes to be passed. Dunfermline chairman John Yorkston said that he would urge the ten to resign if Rangers and Celtic continued to block democratisation of the rules on voting. The Old Firm have historically shown their ability both to ignore the common good where there is a buck to be made, and so it was to prove again.

Man­­agers and directors of the ten have begun to make it clear that a future without the Old Firm was not only an option, but might even be preferable. Fans will see their departure as a chance for real competition to be returned to an SPL championship

one law for the rich , another for the poor

Five years ago Scotland’s wealthiest woman Stagecoach tycoon, Ann Gloag, to defend her privacy challenged the right to roam legislation, winning her battle against the Ramblers Association Scotland and Perth and Kinross Council to erect a fence around a 12-acre area of Kinfauns. Yet she is now happy to proposal to build another house which has led her neighbours to complain that it would ruin their privacy and seclusion.

Forestry Commission Scotland also objected, warning authorities that were the scheme to go ahead, it would ruin an area of ancient woodland and was in direct contravention of planning policies.

As part of the local authority’s decision to approve the plans for the new properties, Gloag will pay a £12,790 “education contribution” fee as a condition of the planning permission. The money will be used to fund improvements and increase pupil capacity at the nearby Kinnoull Primary School.

Socialist Courier wonders what does constitutes a bribe?

http://www.scotsman.com/news/ann-gloag-wins-battle-to-extend-stagecoach-empire-1-2201868

MONEY AND MORALITY

Three years ago, Europeans lauded new weapons export rules meant to control the trade of military technology and equipment. The "Security-related export controls II" rules state that export approval should be avoided in the event that weapons "might be used for undesirable purposes such as internal repression or international aggression or contribute to regional instability." "But it appears that some European Union members are disregarding these rules when it comes to Saudi Arabia. A European Commission summary obtained by SPIEGEL shows that combined exports from member states amount to the EU being the world's largest exporter of weapons to the Middle Eastern country. In 2010, member states delivered at least 3.3 billion euros ($4.34 billion) worth of military equipment and licenses to Riyadh." (Der Spiegel, 19 March) When it comes to making a profit, fine words like "undesirable intentions" mean very little. Sweden, for example, helped the Saudis build a missile factory and sold them some 330 million euros in defence technology in 2011. Meanwhile, Finland recently received an export permit to deliver 36 grenade launchers, and Germany is preparing 270 Leopard 2 tanks for delivery. Great Britain is providing fighter jets RD

dirty glasgow

Pollution in several residential areas of Glasgow has reached potentially deadly levels. All the air quality monitors in the city are exceeding the maximum level for particulate pollution – one of the most dangerous forms with microscopic particles which can cause breathing and blood problems as well as increased risk of heart attacks.

Chris Connor, air quality specialist at the Scottish Environment Protection Agency, said "There is a particular concern about young children and toddlers in buggies as they're at a similar height to exhausts where the cocktail of pollutants is at its highest concentrations."

Broomhill Drive, Byres Road, Nithsdale Road and Battlefield Road are among the worst affected, with most of the pollution thought to be caused by buses, cars and taxis.

POLITICS AND PAYBACK

Just in case that you thought only British capitalists have access to their government here is an example of how this practice is international. "President Barack Obama is using privileged access to the White House to reward his most generous financial supporters. Republican rivals Mitt Romney and Rick Santorum cannot match his move. More than 60 of Mr. Obama's biggest campaign donors have visited more than once for meetings with top advisers, holiday parties or state dinners." (Independent, 26 March) He who pays the piper calls the tune. RD

POLITICS AND PAPACY

The papacy has changed a great deal. We now have press reporters calling him by his first name, and even more than that. "Benedict dons a Mexican sombrero as he preaches Mass to 300,000. More than 300,000 Catholic pilgrims gathered in the central Mexican city of Silao on Sunday to hear Pope Benedict XVI say Mass in the country on his first official visit to Latin America." (Daily Telegraph, 25 March) They even have him depicted in mass circulation newspapers wearing a sombrero. Wow, is this the new with-it Pope? No, this is a Pope who is so concerned by falling collections in churches that he has to travel the world rallying his faithful. Years ago the pope didn't even have to leave the Vatican to fill the church's coffers. RD