Daily Archive for September 8th, 2008

Large profits inflame fuel debate

Published
by
Andrew
on 8 September, 2008
in Politics
. 0 Comments

Last week’s announcement about the research commissioned by the Local Government Association (LGA) on energy companies’ profits in the UK highlights not only the scandal of rising energy bills, but exposes the myth that privatisation brings benefits to the average householder. In the 1980s Mrs Thatcher’s government told us that ending state monopolies through privatisation would give consumers greater choice through competition, and the subsequent competition would result in better service and lower prices as suppliers fought for our business. The figures published last week seem to suggest otherwise. Indeed while ordinary people have seen a huge leap in domestic electricity and gas prices it seems that shareholders have been enjoying the benefits of ever bigger profits.

The LGA research shows the biggest suppliers increased their dividend payouts to shareholders by £257m last year, revealing that altogether the six biggest companies paid £1.635bn in dividends - a 19% increase on the 2006 total of £1.378bn. According to the research by consultants SQW, Centrica increased its dividend payout from £409m to £478m, EDF from £105m to £110m, RWE Npower from £37m to £250m, and Scottish and Southern Energy from £400m to £474m. My current fuel supplier (who sent me a letter about increased prices which arrived today), E.ON, paid no dividend in 2006, but paid out £240m in 2007. Scottish Power was the only one of the “big six” to cut its dividend payout with a reduction from £427m to £83m. The bumper payouts come as the average household fuel bill has soared by 42 per cent since January and it questions suppliers’ claims that they needed to maintain high prices to invest in new forms of energy for the future.

While Gordon Brown and his ministers work this week on measures to ease the pressure on families from increasing bills, it seems that the government has now decided against a one-off windfall tax on the suppliers. However the LGA wants the government to require the energy companies to finance a national home insulation programme to the tune of £500m-a-year for the next five years. “This would allow the energy firms to continue being profitable and provide the best long-term solution to cutting carbon emissions and fighting fuel poverty,” Sir Jeremy Beecham, the acting chairman of the LGA said. “There are 10 million homes in this country that still lack basic insulation. Making these properties more energy efficient would knock £2bn off fuel bills each and every year and also slash domestic household carbon emissions by a fifth. The government and Ofgem [the regulator] should seize the opportunity to take a long-term solution to encourage the energy companies to use their disproportionate dividend payments for a massive drive to insulate people’s homes.” Quite right.

Understandably there is anger at these rises especially in the climate of “inflation-busting” low annual pay awards. Public services union Unison said: ‘At a time when some people are considering whether to heat their homes or put food on the table, this is going to seem very unfair.’ Gordon Lishman, the Director General of the charity Age Concern, believes that the scale of the dividend payouts would anger elderly people struggling to pay their heating bills. He claimed: “Many of the poorest pensioners will be outraged that, whilst they are worrying about how to afford to heat their homes, energy companies continue to make significant profits and pay their shareholders increased dividends”.

The tragedy of the “selling the family silver” privatisation policies of the Thatcherite Conservative governments of the 1980s and 1990s has been compounded by the current Labour Government’s alignment with the needs of big business rather than the needs of ordinary working people. If it has any hope of obtaining a fourth General Election victory, and saving the country from the horror of the Conservatives, then Labour has to get back to its roots. Reassociate itself with the people the party was formed to represent, and fight for improving the economic and social conditions of Britain’s poorest and neediest members of society and not ritually kowtowing to big business.

[Based on reports in The Guardian, and Metro newspapers]

Window of missed opportunity? Part 2

Published
by
Andrew
on 8 September, 2008
in Football
. 2 Comments

Since the end of last season Stoke have added 10 new faces to the squad, the majority with Premiership experience or lower Premiership quality. Doesn’t sound too bad. Indeed they might allow Stoke to make a bit of a fight of it. It is steady if not spectacular building by manager Tony Pulis. But while £20 million pounds spent sounds a lot, especially for Stoke, the Transfer Deadline passed without any real exciting additions, and critically the key areas of weakness in the side were not fully addressed, something which may prove critical in the months ahead. My pre-deadline shopping list would have included the following as minimum: a dedicated left-back, a dedicated left-midfielder, preferably a winger, a creative central midfielder, and at least one more striker. The actual purchases were another central defender who can play left-back if pushed, and two midfielders, one of which is able to play on the left, and neither really proven at this level. From what I’ve seen so far, for all the spirit and effort shown by the Stoke side, and indeed an increasingly inclination to pass the ball around more, the overall approach is still fairly limited. The main tactic is to chase balls down the flanks and put the opposition under pressure deep in their own half forcing them to concede either corners, or more typically throw-ins. Rory Delap will then hurl in one of his monster throws, and Stoke try to capitalise on the confusion in the penalty box. The introduction of creative or wide midfielders might offer other attacking outlets, so players of this nature were an absolute must, but whether the ones that arrived are of the suitable standard remains to be seen. A huge concern is the inability to add to the forward line seeing as an injury to or suspension of Fuller and Kitson leaves Stoke fielding Championship standard strikers that can be best described as “honest”.

The final word must go to the departure of another “honest” striker, Jon “The Beast” Parkin who Stoke sold to Preston North End on deadline day. Parkin split fans’ opinion down the middle into two clear camps. He was either detested as an unprofessional waster whose lack of fitness was an absolute disgrace, while to others he was a characterful cult hero serenaded with the chant “Beast, Beast, Beast”. Parkin could have had great appeal, even hero status, forgiven all his indiscretions if he’d scored more often. A professional footballer he may be, the Beast’s appearance was more in keeping with the watching faithful. He was almost of comic book story proportions, real Roy of the Rovers stuff. Picture if you will Melchester Rovers needing a win to avoid relegation in the last match of the season, the manager and his assistant frantically trying to conjure up a goal from a desperately dire display. The clock is ticking and with 5 minutes to go the scores are tied at 0-0. A big lad is needed up front, but the star forward is out injured and the substitutes bench has been decimated by a stomach bug. They look round and spot the giant Parkin in the crowd, unshaven, half cut, and enthusiastically tucking into a pie, gravy stains down the front of his replica shirt. “Here laddie we need you”, shouts the assistant, “Come over here and get these on”, hurling him a pair of boots. Parkin straddles the advertising hoarding with one last mouthful of pastry, squeezes into the boots and a borrowed pair of shorts, then takes to the pitch as the crowd roars on one of their own. His first touch is to barge past the opposition’s strapping centre halves, and get his considerable weight behind a deep cross into the box to meet it first time with a thunderous volley which rockets past the hapless keeper and bulges the back of the net. The stadium goes berserk, Melchester Rovers are safe from relegation, and Parkin staggers off the pitch exhausted but the unlikely hero.

Pure fantasy, but I’m sure there’s large parts of the Stoke crowd who would have forgiven, nay revelled in a hero who rolled up to the ground 15 minutes prior to kick off, nourished by a pre-match meal of pub pie and chips washed down with three pints of Marston’s Pedigree, before belting home a couple of wonder goals to help his team to victory. Frankly they’d have loved it. No doubt Parkin’s behaviour was never that unprofessional, but then again given his appearance few would be surprised if that was his match day routine. Personally I thought it shame he never showed his true talents, whether it be through lack of fitness, or either the reluctance of the manager to pick him, or use Parkin in the wrong system. When used as an impact player coming on late in the game, his deft touches and intelligent reading of the play often gave Stoke a different dimension, fresh impetus, and a more skilful attacking edge. Sadly he lacked the fitness to maintain that drive for a full 90 minutes, which was no doubt his undoing, and the reason he was not considered part of Stoke’s Premiership plans. Farewell Beast, you had your moments, you could have claimed hero status but ultimately you wasted your chance. Good luck at your new club, and as tradition dictates you are sure to score against us when Stoke next play your new team!