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Cuts are about ideology, not economics PDF Print E-mail
Thursday, 02 September 2010 20:49

Andrew Fisher, LEAP co-ordinator, explains that the ConDem Coalition is exaggerating the “crisis” to destroy public services.

David Cameron’s Government is using the financial crisis much like the Bush Administration used the events of 11th September – as the opportunity they needed to implement the plans they’d always wanted. The current austerity drive is a cover for the dismantling of the welfare state and key public services like the NHS, education and council housing. At the same time business is being relieved of the burdens it faces: taxation, pay rises, pensions and health and safety law.
The Budget was the start for this turbo-charged neo-liberal assault. It cut £11 billion from welfare – not in just a crude slash, but a surgical operation. The changes to housing benefit put Shirley Porter to shame with the scale of their social cleansing. One of Porter’s successors, Westminster councillor Philippa Roe, welcomed Osborne’s move: “[before] there was also little incentive for them to move or work, as under the benefit laws they would lose much of their generous housing payments.” The reality is that housing benefit claims are often paid direct to landlords – and even if they are not, they are used by people (only one in eight of whom in London are unemployed) to pay rent to their landlords who are demanding “generous housing payments”.
These changes will only save about £4.2 billion nationally over the next five years, a drop in the ocean in budgetary terms, yet they will make many parts of London no-go areas. One outer London borough has found that 71% of the households assisted with private sector rents exceed the new cap. The cap will therefore force those on housing benefit into more deprived parts of London, into overcrowded lodgings, and into homelessness. What’s important is the lesson: you’re on your own (in the big society)
Elsewhere in the June Emergency Budget, child benefit was frozen for three years, which will be a real terms cut of over 10% by the third year. However, worry not: the “family-friendly”, “progressive alliance” is trying to dissuade you from having children anyway – by cutting the Health in Pregnancy grant and the Sure Start maternity grant.
For welfare recipients, privatised medical reassessments await those on Disability Living Allowance – predetermined to result in savings of £1.4 billion.
The value of all benefits will suffer by linking them to the Consumer Price Index (CPI) instead of Retail Price Index (RPI) measure of inflation. CPI is like RPI, except the cost of housing is removed. It would therefore be useful in societies where everyone was housed for free – or in neolithic societies, where self-built mud brick dwellings were the norm. For the modern UK it is of no practical use.
The Tories estimate that this will save them £6 billion over the next five years. It is worth reminding readers that even RPI lags behind the rise in average earnings. If unemployment benefit had been linked with earnings since 1979, it would today be worth £110 per week. Instead it is £64.05. This gap between benefits and earnings will now increase even further.
The final piece in the jigsaw was the two-year public sector pay freeze. The argument goes that the private sector has suffered pay freezes and now the public sector should – the intellectual equivalent of breaking your leg and then “logically” breaking the leg of your best mate so that it’s fair. However, the Tories’ argument is inconveniently undermined by the facts. In 2009 the average pay rise in both the public and private sectors was 2%, and so far this year the average private sector pay rise has been 3.6%, while in the public sector it has been 2.8%.
You might argue that all this is necessary. After all there is “a debt crisis unprecedented in our peacetime history”, according to the Prime Minister. This is simply not true. UK debt is currently 53% of GDP – lower than that of the US, Japan, France and Germany. From 1918 to 1961 UK debt was over 100% of GDP, and when John Major left office in 1997 it was 42%.
Further, the cost of all the above measures combined – and add in the cuts to tax credits too – is less than the £25 billion cost of subsidies to big business through the corporation tax cut, small business rate cut and higher threshold for employer National Insurance, which were also announced. The one remaining Budget measure that actually cuts the deficit was therefore the VAT rise – a tax rise which disproportionately hits the poorest hardest. The cuts are unnecessary and ideologically driven to redistribute wealth and power from poor to rich – as a matter of urgency.
They also won’t solve that unprecedented debt crisis. The most likely scenario of the cuts planned in the Budget, and to be unveiled in full in the Comprehensive Spending Review in October, is that they will cause further unemployment. Leaked Treasury papers suggest the planned 600,000 job reduction in the public sector will cause 700,000 job losses in the private sector. This will decrease tax revenues and increase welfare costs – and therefore increase national debt. The failure to reduce the deficit is what will slay this Government in the mainstream media, but it is the practical impact of their ideological attack on the public services that will mobilise communities.
We should be clear that this Government is not having to start from square one. In each area of attack, it is building on the legacy of New Labour. The housing squeeze and rising costs of the private rented sector are due to the lack of council housing built under New Labour (less than any post-war government). The attacks on welfare benefits and demonisation of claimants build on the legacy of Hutton, Purnell and Freud. The privatisation of statutory education is the City Academies programme of Blunkett, Adonis and Balls writ large. The carve-up of the NHS is the unrestrained policy of Milburn, Reid and Hewitt.
Cameron warned us this would be the case almost from day one – when he positioned himself as “heir to Blair”, calling Gordon Brown a “roadblock to reform”. This is free-wheeling neo-liberalism, everything Blair wanted to do but couldn’t get away with – not because Brown stopped him, but because the party membership, the unions, and the required electoral base provided, albeit limited, restraints. That same triple alliance of party members, trade unionists and working class communities must now be mobilised to bring down this Government.

 

 
It was more than murder PDF Print E-mail
Wednesday, 30 June 2010 00:00

Alex Harrison gives an eyewitness account of the vicious Israeli attack on the Freedom Flotilla – and all those aboard.

The Freedom Flotilla sailed peacefully to break the siege of Gaza, not to see friends killed. Aboard the Spirit of Humanity last year I experienced Israeli abduction and imprisonment and although they have killed peace activists and thousands of Palestinians, I did not believe they would fire on us.

At 2am the Sumoud (which means Steadfastness), which I was on, was the last ship to join the flotilla. The Mavi Marmara lit up like the Blackpool Illuminations for us and every captain radioed a welcome. As all three of the Free Gaza Movement’s vessels had suffered unexplained mechanical problems, reaching the other ships felt like victory. We even stopped for a swim.

When we lost our GPS that evening, we knew the Israeli operation was on. Warships appeared and at midnight they began to radio the familiar vague threat they had repeated over 13 hours last year. “This is the Israeli Navy. You are entering a blockaded area. The responsibility of your actions will be on the captain and crew.” We were still over 100 miles from Gaza. The warships drew closer and were joined by aircraft. We stayed near the Marmara for safety, steering away from the Israeli coast. They never warned us they’d use arms against us.

During the dawn prayer, while we were still 80 miles offshore, they launched zodiacs (speedboats each carrying 15 heavily armed, masked men). They surrounded us as two tried to attach to the Marmara. The passengers hosed them with water and the journalists on the Sumoud photographed the smoke of the explosives the Israeli military had launched. I doubt many of those on board were able to identify what was being fired at them.
We saw the helicopter descending on the Marmara and heard the crack of live gunfire. We radioed Captain Mehmet: should we stay near, for solidarity? “We are being brutally attacked. Carry on, try to get the footage out,” he said. What he didn’t tell us was that he knew that two of his passengers were dead.

We sailed on. The two helicopters on the horizon behind us were far apart and we knew another ship was under attack. Our zodiac accompaniment left. Were we being allowed through? A new warship appeared ahead. It sped at us. We braced. During Free Gaza’s sixth voyage The Dignity had been rammed three times by the Israeli navy and later sank. This warship swerved, sped at us and swerved again. Then it launched more zodiacs.
Although the 17 of us on board resisted only by standing on deck, the masked gunmen opened fire even before they boarded. Women were pelted with rubber bullets (one suffering facial injuries), were tackled and pulled down onto broken glass, and bound with cable ties. Two were hooded. The journalists were identified and tasered. The degree of violence used was so unnecessary it was cartoonish.

Yet the military attack is not the memory I dwell on. Perhaps violence and death on that scale is basically incomprehensible. My outstanding memory is of their contempt and how they humiliated us at every moment until our flights departed. Commandos snatched all our possessions, everything down to our wristwatches. They watched us on the toilet. They screamed and hissed, dragging us from the boat to parade us before jeering soldiers and photographers. We were bruised, abused and forcibly strip-searched at the dock, then taken to a prison compound and held incommunicado.

Only when the women from the Marmara arrived, staring and red-eyed, did we learn what had happened on that boat. We were given no news of the missing and injured. The Israeli officials were hateful, denying us the rights their law affords. The widow of a slain passenger was shown a photograph of him. Bloated and shot in the head, she recognised her husband only by his mouth. She was then sent back to the cells.

Those of us who refused illegal deportation and wanted to go before a court were tricked into boarding vans and held in an airport cargo bay. A soldier, unprovoked, beat two of the women. His colleagues held the rest of us back to facilitate it. Our pen had a view of men being beaten by a dozen soldiers at a time, one so severely he was unable to travel. A senior officer, seeing I’d salvaged one possession, my phone, broke it and binned it in front of me. Abusive. Unnecessary.

The epitome of their inhumanity was their treatment of the injured men. On Wednesday night most were still clothed in what they’d slept in on Sunday, bloodstained and torn. One, who was having a blood transfusion, walked carrying the blood bag in his hand. I couldn’t ask the hobbling men with bandaged feet how they’d been injured. If they spoke, they were beaten. They’d been shot in the tops of their feet but the Israelis wouldn’t give them wheelchairs or crutches. Anyone offering the injured an arm for support was smacked and dragged away. The soldiers watched, forcing the men to hop unaided to the aeroplane.

I finally embarked, joining colleagues who had been on board for 14 hours. I continually recall the stench of three day old dried blood mixed with fresh blood and the stale, noxious adrenaline sweat produced when a person truly fears for their life.

The hostility wasn’t over. Denied radio by the control tower, the Turkish planes had to communicate by using the crew’s mobile phones. In a final insult we were told our belongings were in the cargo hold. They weren’t. They’d been looted. Credit cards and mobile phones taken from my boat were used in Tel Aviv over the following week. Despite assurances from our Foreign Office, the British passengers discovered nearly three weeks later that the Minister had yet to address the matter with Israel.

Safely back in the UK, how do I feel? Undeterred. What happened to us was only a fraction of what Palestinians experience. We cannot let the sacrifice of nine lives be in vain. We’re determined to work even harder. We’ve returned to immense support. In whatever way you support Palestine, throw in all your energies because right now it counts for more. Free Gaza have sailed nine voyages in under two years and we’re already preparing to sail again. We’ll go as soon as we’ve raised enough money for the boats and we will sail until Palestine is free.

 
Jerry Hicks - BA dispute PDF Print E-mail
Saturday, 29 May 2010 19:41

From BAd to worse – then a bit better! by Jerry Hicks

In the week starting 17th May, all eyes were on the High Court in London. As if to rival Eastenders, the British Airways/Unite “High Court, the Soap Opera” had moved to a new twice-weekly slot.

Monday’s cliff hanger saw British Airways win another injunction on yet another technicality. Within the thousands of votes cast, the overwhelming majority of which were in favour of strike action, there were eleven spoilt papers and this was not conveyed to all those who took part in the ballot. Unite called the strike off and appealed. Thursday’s episode saw the injunction overturned. It appears the original decision was too much for the ruling class to justify.

It might be funny if it wasn’t so serious. That employers like BA use anti-union laws to stop strikes is no surprise. The National Union of Journalists and the RMT have both recently lost court cases on technicalities. The scandal is that employers are still able to use the courts to block strikes.

Where are we now with BA? Willie Walsh has sacked five Unite members, suspended at least 50 others and now we hear that some who cheered at the High Court when the injunction was overturned are suspended as well. This is a blatant attack on the union and its members.


*Jerry Hicks is a candidate for General Secretary of Unite. For more information about Jerry’s campaign, including the election timetable, visit http://jerryhicks.wordpress.com/.

 
Graham Turner - Debt Crisis PDF Print E-mail
Saturday, 29 May 2010 19:37

The sovereign debt crisis roiling financial markets is just one of three major risks facing the global economy and threatening a double dip, explains economist Graham Turner.

House prices have started to fall again in the US. At the end of March, a record 10.1% of homeowners with a mortgage were in arrears. Repossessions have continued to rise, with 92,432 homeowners evicted in April alone. Attempts to cool runaway property speculation in China have triggered a steep reversal in share prices for property companies.

However, it is Euroland that has been dominating the headlines. The new Chancellor of the Exchequer made much of Greece’s travails during the election campaign, and George Osborne will cite the country’s inability to borrow on capital markets when he unveils his emergency budget in June. Many countries, including the US as well as Japan and much of Europe, have indeed hit the Keynesian buffers.   

Gordon Brown – and the Liberal Democrats – campaigned against early cuts in the deficit during the recent election, arguing that the recovery was too fragile. At first glance, they appeared to have a case. Consumer spending has slowed sharply this year, partly in response to the VAT reversal, but also because real pay is still contracting.

 

 
Andrew Fisher's election review PDF Print E-mail
Friday, 28 May 2010 21:53

Andrew Fisher, LRC joint secretary, analyses the 2010 General Election result which could have been so much worse.

From some of the post-election analysis you’d be forgiven for thinking Labour had been a doughty fighter holding its own, resisting until the end, but just edged out in a contest from which it could walk away with its head held high (and other such tedious clichés).

The reality is somewhat different. Labour’s share of the vote fell from a poor 35.3% in 2005 to 29% in 2010. The number of Labour voters was reduced from 9.57 million in 2005 to 8.61 million in 2010, even though the turnout increased in 2010 – up from 61% in 2005 to 65% in 2010. In 2010, Labour polled five million fewer votes than in 1997. By comparison, in the 1983 General Election (entered in folklore as Labour’s darkest hour) Labour polled 27.6% and gained 8.46 million votes.
There has been a large decline in support for Labour since 2005 – as has been shown by election results in the intervening period. Despite the higher turnout, the average Labour candidate polled 13,643 votes in 2010 – 1,475 fewer, on average, than in 2005. Their share of the vote also declined by 5.5 percentage points to 31% (excluding Northern Ireland). This decline saw the net loss of 91 seats, the most lost by Labour since 1931.

 
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