Bring back sustainable coal mining in the UK

With rocketing fuel and energy costs, the remedy lies in one of the cleanest, most efficient forms of energy - coal. With new coal burning technology, the UK's energy crisis is an opportunity to reclaim hundreds of thousands of jobs and reignite the once vibrant coal mining industry. Nationalisation of the coal mining industry, and the re-opening of mines which were closed as part of the Conservative party's ongoing war on the working class, must be a priority of any forward thinking progressive would be Government. The UK must again become a major coal exporter, rather than importing coal at a huge cost to the UK economy which involves child labour and poor working conditions.

Once we had, the most productive, efficient and profitable coal mines in the world. Now the UK imports 44 million tonnes of coal every year at a cost of £4 billion. Proof that the “free market” doesn't work, as the free market isn't free – its manipulated to reflect the interests of the rich, at the detriment of the working class.

Whole communities, destroyed by the sadistic politics of the Tory party, have an opportunity to be saved by investment in the coal industry. The discussion needs to take place and it is the responsibility of the Labour Party to promote the creation of sustainable jobs and energy as part of its agenda.

Baroness Bigot's selective discrimination

In a highly publicised speech regarding racism towards Muslims, Baroness Warsi stated that Islamophobia had “passed the dinner party test”. Warsi's opposition to discrimination may have been taken more seriously if her comments weren't limited to people within her own religion. How about homophobia “passing the dinner party test” or discrimination towards the disabled, the unemployed, the infirmed, single parents, or people who are lesbian gay or bisexual? In fact, Baroness Warsi has proved herself to be a bigot on matters of sexuality, and in particular, homosexuality. Her opposition to the lowering of the age of consent, her many comments about homosexuality “undermining” family values and her inane rantings about homosexuality being forced upon seven-year-olds by schools show her bigotry. So why should Baroness Warsi's views be given any more credence than for example, Nick Griffin who holds similar views on sexuality?

The Conservative Government's cuts have attacked the disabled, the unemployed and the poor; why didn't Baroness Warsi criticise attacks on these groups of people? Any form of bigotry, including Baroness Warsi's, always attacks these groups as they are easy targets.

Discrimination should be opposed in all forms, and if Baroness Warsi wants to genuinely end discrimination then actions speak louder than words, and she should join the fight against the cuts, which steal from those who already have next to nothing. Shame on you Baroness Warsi.

Why the UK is heading back into another recession

On this blog, I have previously commented that the UK economy is heading back into a recession. Recent predictions from the OBR have predicted growth for the forthcoming year. However, because of depressed spending due to the cuts, I would expect a negative GNP to occur as early as in the next set of announced figures; the UK will enter a fully blown second recession either in 2011 or in the first half 2012 when broadly speaking, the current Government’s measures to shrink the state are in full effect and the effects of the previous Government’s stimulus package has ceased.

It appears that Cameron and Co have failed to grasp many key aspects of economies and governance. As respected economists Gordon Brown and Alistair Darling led the way in bailing out the banks; as such, their actions were mirrored by every major economy affected by the downturn. Likewise, the stimulus package to prevent collapse was duplicated the world over. What this also demonstrates , is the "herd mentality" of Governments; just like individuals who are given the freedom to act independently, generally, they simply mimic the actions of others.

Whilst not as well respected as Brown and Darling, Osbourne’s actions of scaling back the state and cutting spending has already began to be copied by other Governments. When these cuts are in full swing, and Governments all over the World decrease their spending, this will result in less people in work, leaving consumers with a lower level of disposable income. As such, the UK’s exports will decrease, as will the performance of the inter-linked worldwide markets.

It has now been proven beyond discussion, that the markets cannot, and do not, provide all of society’s needs. This over reliance on markets to drive the world’s economies, especially when additional pressure is placed upon them by short-termist governments, will result in a worldwide downturn.

I would urge the Government to change its current course of action, and whilst a cliché, would encourage it to “think of the bigger picture”. Unlikely, whilst "fag packet economics" prevails this is very unlikely to happen. A combined approach the market's ills must be adopted, as worldwide problems cannot be solved by unilateral actions.

On a slight side issue, for those with a portfolio of investments, I would very much think about moving your money away from equities due to the unsteady FTSE and international market performances; unless you have an extremely high risk tolerance, I would suggest moving into secure investments including cash for the short to medium term. Even bond investments have been reduced to almost an irrelevance due to appalling bond yields. Whilst failed economists would regard low bond rates as a positive due to the decreased cost of Government borrowing, these are good indicator of future growth prospects. I would also not consider commercial property to be a worthwhile investment, due to extreme liquidity issues from Central Banks and a real hesitancy to lend by banks. I would however exclude purchasing residential property for oneself to reside in from this statement, as over the (very) long term, owning property is better than the alternative.

An analysis of the ongoing spending review

The intention of the recent spending review was apparent; to shrink the state at the expense of the poorest members of society. The Institute of Fiscal Studies, generally a right of centre institution, has confirmed this stating the cuts will have a "regressive effect, hitting the poor much harder than the rich.” Cameron has recommenced the Tories war in its against the poor in “going after fraudulent benefit claimants”. However, back in January of this year, I’m sure that Cameron will have seen reports that benefit fraud costs the UK £1billion per year, whereas tax evasion costs the UK more than £15billion per year. However, they have continued to attack the poorest members of society, as opposed to the real fraudsters - those with enough money to afford accountants.

Cuts in welfare will affect the most vulnerable members of society including the disabled, the impoverished and those who are long-term unemployed. In addition, the job losses because of these cuts will add further strain to the welfare state, which simply cannot afford another 500,000-1,000,000 joining the growing list of people on benefits. The assurance by failed right-wing ideologists that the markets will provide replacement jobs simply does not stand up to any level of scrutiny. Most employers are “increasing efficiency” by shedding jobs, as opposed to employing new members of staff. This view is backed up by CIPD confirming that most employers intend to decrease staff levels as opposed to increase them.

In addition, the increase to the pension age will add further pressure to the job market; there simply aren’t enough jobs in the private sector to stretch to the new people joining the jobs market.

There is a lack of joined up thinking in the approach taken by the Government, and a rethink is immediately required. A solution to the “crisis” cannot be taken by a single state alone. What is a worldwide problem cannot be solved by a unilateral approach. Inflationary pressures are none existent; wage rises have been frozen in most circumstances in both public and private sectors and consumers simply aren’t spending in previous volumes. Therefore, interest rates have to stay low and a second round of quantitative easing should take place to ease the economic pressure and deliver sustainable growth. The UK lead the way in dealing with the banking crisis, and must lead the way again, encouraging other nations to follow the same path of recovery through investment in education, training and job creation. Additionally, revenue must be raised through a progressive taxation system must be introduced helping the poorest members of society, whilst taxing those who can afford to pay more. If this Government continues upon its current course, the UK is heading towards a huge social division bringing with it social unrest, mass unemployment and economic and social anarchy.

An outline of an alternative strategy to improve the economy is as follows:

An immediate halt to the cuts in public services, thus saving the treasury from having to make additional benefit payments

A further round of quantitative easing to encourage growth and economic improvement

Savings in tax relief on personal pensions by introducing a universal rate of tax relief of 20% as opposed to 40/50% for the richest members of society

Introduction of a fairer tax system, with the nil rate band stretching to £10,000 thus encouraging more people into work, further reducing the benefits bill

A progressive increase in the tax rate according to earnings, beginning with a graduated increase in taxation from a 20% figure at £10,000

A fairer tax system for the self employed. The PAYE system is overstrained due to a lack of input from the self-employed. The “grey economy” is growing and must be taxed accordingly

Attacking the tax fraudsters who cheat the UK out of £15billion worth of tax receipts

Lowering of the threshold for inheritance tax, and an increase in the rate applied not only providing additional tax receipts, but helping create a fairer society

A windfall tax on previously nationalised utility companies, to reclaim some of the excessive profits made by wrongly privatising these. A proportion of the profits made since 1997 should be reclaimed.

There was uproar at the Conservative Party Conference this week when it was announced that Child Benefit was to be axed for Higher Rate taxpayers. In principle, PISTRVOR agrees with this step, which perhaps may go a very small way towards plugging the huge public finance gap caused by profiteers within the financial sector. However, the Tories rapidly backtracked by committing themselves to a nondescript tax break for married couples, removing any improvements to the budget made by cuts in Child Benefit. This “fag packet economics” and reactionary nonsense has to be challenged. The longer the coalition Government is allowed to steer the country towards economic chaos, the more difficult the recovery will be.

What is almost as disturbing was the media’s uproar regarding the loss of this benefit; compare this to the deafening silence when Surestart’s budget was to be cut. For those who are unaware, Surestart is a children’s services programme, specifically directed towards less well off parents. Similar was the complete media blackout of coverage with the axing of the Building Schools for the Future programme. This undoubtedly proves that the media, and indeed the Conservative Party, are more concerned about middle class England and their wealthy paymasters than the requirements of the neediest and underprivileged.

The most important duty of every single Government should be education. Without sufficient funding in education, especially for those who most need it, all other expenses will rise including the cost of law and order and payments in unemployment benefit. This Government has to realise that education is of paramount importance. Everything else, including social engineering and benefits for the rich, are not.

A comment on 101 days of Government

After 101 days of the coalition Government, we now have more of an idea of the path in which it intends to follow in this parliament. We have seen the destruction of Building Schools for the Future (BSF) combined with huge reductions in front-line public services and cuts in the NHS, education and training. Additionally, we will soon see an additional tax burden on the poor in the form of a VAT increase.

It is clear that cuts will be made “bottom up”, rather than “top down.” Instead of increasing revenue through cutting tax loopholes exploited by the fat cats, cuts are being made to those who can least afford them especially the poor, children, and the unemployed.

In order to justify these cuts, the Rupert Murdoch controlled media have worked very well with the Government in order to raise public concerns regarding “the deficit” mentioning at every single opportunity, that the UK has “ran out” of money. In fact, prior to the banking collapse in 2007, the UK national debt was lower than other countries. The lost receipts, due to the greed of the bankers and fat cats, have been the biggest single contributing factor to the current national debt. Does it not appear fair and just, that the people responsible for damaging the economy, should be the ones who help to repair it?

The deficit itself is a lot more complex than media pundits with vested interests would possibly have the general public believe. The deficit is supported by Government issued bonds; unlike the Greek and Irish economies, the vast majority of Government bonds are purchased by individuals, corporations and fund managers within the UK. In effect, the UK Government is obtaining finance from itself and its people, allowing the private sector to make investments risk free. As a sterling sovereign currency, Sterling, cannot, will not and is unable to “go bust”.

The deficit does need to be addressed, however, the main question is how and when this should take place. The Government is beginning to prove that it is unable to respond to these questions in a fair and just way.

Globally, or at least in the Western World, there have been great, even colossal, increases in productivity and efficiency. However, at the same time, in real terms, staff wages have declined. Through increased personal debt and constant media encouragement to take on this debt, consumerism has encouraged the public to spend well beyond their means. This has created a false sense of wealth amongst not just the public in the UK, but across the world. However, due to the UK house price boom, this has been magnified in this country.

Now it appears that the Coalition Government intends to further decrease workers share of the nation's wealth, through its programme of dismantling the state. Ideology is behind the Conservatives plan to do this, not some altruistic ambition to reduce Government Debt.

It is often said that people get the kind of Government they deserve. Not even we have been that bad.

Recent statistics have shown a welcome decrease in the unemployment figures. Some commentators even have the downright audacity to suggest that it was a reflection on the Conservative Government's economic measures. In truth, previous investment in training and employment have produced results and have kept unemployment lower than it would have otherwise been in a completely free market. The Conservative policy of ending investment in training and work programmes, particularly for young people, has already begun huge damage to the well-being of this country and will continue to do so during this parliament.

The scale of the cuts facing The Ministry of Justice, revealed earlier this week, has provided a frightening insight of how widespread the public sector cull will be. Also, in view of the VAT increase, and other anti-enterprise measures taken by the coalition government, the likelihood of the private sector replacing the jobs lost in the public sector remains extremely low.

This does mean that unfortunately, unemployment will rise again in 2010, as the free market is at present unable to create the wealth required for investment in staff. The huge Government cuts will send the economy back into recession as there simply is not the appetite for growth amongst business, with a culture of consolidation and “austerity” which has been encouraged by the Government.

“Are we really happy to say that we’d give up our independent nuclear deterrent when we don’t know what is going to happen with Iran, we can’t be certain of the future in China?”
Before forming his Government, Cameron's staggering ignorance of world affairs was perfectly demonstrated with his unqualified attack on China, a valued trading partner, which has been both the recipient and donor of UK investment. More importantly however, to compare the state of Iran with a member of the UN Security Council is a gross insult to the Chinese people and an appalling gaffe. The correct action for Mr Cameron to take should have been to apologise. However, he did not.

“We were the junior partner in 1940"
Cameron has proven that its not just his knowledge of current affairs that is poor, with his comment that the UK was in fact merely a junior partner of the United States in World War 2. This is appallingly insulting to the millions of British people who gave their lives single-handedly defending Europe from fascism. Prior to Pearl Harbour, Britain didn't have any partners at all in fighting the Nazis. In fact the US only declared war, once Japan and the Germans had in-fact declared war themselves.

Cameron's attempt to change history in order to appease recent tensions between the United States and the UK was an extremely cynical action.

“Gaza Strip is a prison camp”
Cameron's recent visit to Turkey included a meeting with Turkish PM, Mr Eridgan, in which he joined in with anti-Israeli rhetoric that Israel was behaving despicably in its treatment of the Palestinians. Indeed, the cycle of military action and terrorism must be broken, but through careful, skilled diplomacy. Not through anti zionist rhetoric from Mr Cameron.

What makes this particularly concerning, is that Mr Cameron has also attacked the unstable Pakistani Government during a recent visit to India stating that Pakistan must do more to prevent terrorism.
Mr Cameron made such comments without any consideration for the effect this would have in Pakistan and how this may be used by Pakistani Militants and Taliban supporters. He has in fact managed to alienate both the Islamic and Jewish worlds.

Not only is Cameron managing to destroy the economy, he is managing to alienate the UK from the rest of world.

No doubt, more updates will follow on Cameron's gaffes and errors in the very near future.

ConLib’s policy of reducing the state is in full swing, with its scrappage of the £55billion Building Schools for the Future programme (BSF).

A perfect epitomisation of the devastation this will cause is in my local area, Oldham, where 13 new projects have been halted. This is disastrous news to the local population with an unemployment rate well above the national average.

In times of economic downturn, the way to steer an economy away from depression is through investment, and there is no sounder investment than in education, with the result of generating a workforce capable of creating wealth as opposed to a generation of benefit claimants. The decision to place short-termism ahead of the long-term future of the country is extremely dangerous. Everyone appreciates the desperate need to cut the nation’s deficit, however, is damaging the future of the future workforce of the country the best way to do this? It is entirely inappropriate for children to be educated in crumbling, clearly out of date buildings, which are no longer fit for purpose.

Savings and improvements have to be made, but it is very much apparent that those most affected by the ConLib cuts are those who can least afford it.

These cuts are perfectly co-ordinated with recent comments by Iain Duncan Smith, who introduced plans to make the workforce “more mobile”, clearly reminiscent of Tebbit’s now infamous “Get on your bike” speech. These plans included sketchy details of paying people to move out of areas and vague promises regarding local authority housing placements. It is without logic to pay grants and subsidies to encourage people to move to an already overpopulated London and the South East.

The policy of cutting funding from education in deprived areas, and instead, funding relocation packages, is entirely without logic. It is time for an urgent rethink from this so called “Progressive” Government, as the only thing we are progressing towards is another recession.

Tory Buffoonery is back

The latest idea from the incompetent "Chuckle Brother Coalition", is the incredibly naive suggestion to scrap laws with a Website for suggestions from the public including the comment "Every unnecessary law, every mind-numbing rule, every time your rights have been infringed now is the time to tell us about it." Clearly, Chuckle Brother the Younger does not appreciate that law constantly evolves and each layer of law shapes the laws passed previously. If he thinks that just ripping a law up is as tearing up a piece of paper, this shows the incredible naivety and pig headed arrogance of the man. Do not be surprised if the law that most people want scrapping is the ban on fox hunting.... Despite the fact that the vast majority of UK detests this abhorrent pastime, the Tories will try any available means to bring back murder sports.

Clearly following the emergency budget, the agenda of the new coalition Government has been set, with its high taxation, low jobs strategy for the future, in view of tax increases directed at the poorest members of society. Osbourne's buffoonery is perfectly demonstrated in his comment that VAT increases do not effect the poor as much as the rich. Clearly, this classic, almost characterturesq example of a Tory buffoon has no understanding of the pressures faced by the poorest members in society, who are effected more by tax rises, which do not take into account the ability to pay. Maybe Mr Osbourne would be better served spending more time on his sleazy pastimes, which appear to have been conveniently forgotten by the Murdoch driven press.

This odious little man with no economic knowledge whatsoever has begun Cameron's mission of dismantling the state, and will send this country back into recession with his cuts of public services which are driven by blind ideology, as opposed to good economic sense.

Emergency Budget

As the nation awaits the first ConLib emergency budget, we've already seen their main targets in terms of spending cuts. These include a new hospital in the North East; however, particularly alarming are the cutting of projects to help young people find work and subsidies to help employers with the costs of recruiting new employees.

At the centre of any reform, has to be getting people into work, as unemployment is again on the rise after many years of high employment. With cutbacks expected in the public sector, any growth to get the economy out of recession has to be driven within the private sector. However, the economic conditions are not yet attractive enough at present in the private sector to encourage growth and investment. That is why, this is a time for investment in training and education in order to create wealth in the medium term as opposed to cutting budgets in the short term.

Cutting funding to help people find work, including the JobSeekers Guarantee and the Young Person's Guarantee is extremely dangerous to the economy and is the first step towards plunging the economy back into recession with the end result of creating a new generation of people who want to work, but are unable to find suitable employment.

The proposed rise in Capital Gains Tax is a sensible method of beginning to balance the books as is the means testing of some of the current benefits. However, investment in jobs, training and education is the only way the UK economy can remain in positive growth in the long term, whatever the short term political pressures.

"New politics"

In today's News of the World, Cameron directly stated "I think people are finding it refreshing to see politicians putting aside their differences and actually listening to each other instead of arguing all the time". And in the next paragraph but one he commented "Labour have left a catastrophic legacy. They used up the Government cheque book, maxed out the country's credit card and left us deep in debt.... But there has been no apology, no shame".

So much for "refreshing to see politicians putting aside their differences!"

Classless society?

Melissa Massey, a"high flying student" from Oxford University (who was expected to gain a first class degree this summer) was sentenced to just eight weeks, for a vicious and brutal attack on Miss Sumner, a paramedic in Manchester City Centre giving over 20 years of public service.

The press even ran sympathetic stories towards Massey, saying how it was questionable to sentence such a "bright prospect" to a custodial sentence.

It begs the question, why should being a student at Oxford University decrease the sentence? Why should being a member of the upper classes be rationale for a lighter sentence to be passed? Attacking a public servant should carry a stricter sentence than eight weeks. If the offender was a working class shop worker, factory hand or warehouse worker, a "single mother" or even worse, someone who lived on a council estate, then the sentence would have ran into years. The press would have ran yet another "Broken Britain" story.

Classless society? Doesn't look that way to me.....

Cameron and Clegg aka Chuckle Brothers.

How on earth can Cameron and Clegg aka the Chuckle Brothers work together? Cameron's "I've always been a Liberal Conservative" is a complete contradiction in terms.... How on earth can opposing views on Europe, immigration, the welfare state, the NHS and so on possibly be considered as compatible ideologies? What a farce.

It didn't take Cameron long to show his true colours however; already he has "amended" his pledge that he would scrap the National Insurance increase, however, surprise surprise, the scrapping of this will now only apply to employees, rather than employers. The Conservatives have already acted to protect their own to the detriment of everybody else.

As for Clegg, his complete betrayal of the British people and his own party members will be seen in future years as desperate actions of a desperate man. How on earth can his own left of centre liberal views, be considered genuine, when he is getting into bed with the leader of a party that still celebrates Thatcher as demi-god....

Actually, after consideration, maybe these power hungry charlatans are not so different after all. Apologies to Barry and Paul for any offence caused.