Tuesday, January 07, 2014

Getting wet & furious on route to Great Tory Train Robbery Protest

As I walked to join the #GreatToryTrainRobbery protest at Stratford Station early on Monday morning, I was listening on earphones to Chancellor George Osbourn, being interviewed on Radio 4 news "Today".

Osborne blithely announced a further £25 billion in welfare cuts after 2015. When it was suggested that since payments to pensioners  cost half of all such welfare spending he should be cutting winter fuel allowances to wealthy pensioners, he said that this would only save a few millions. He suggested instead the savings will be made by further cuts to young people's housing benefit and by charging more to Council tenants who earn £60-70k per year.

It was raining quite hard at the time and was too windy to put up an umbrella (not the best day to start fulfilling a New Years Resolution to walk everywhere) but this helped cool me down while listening to this nonsense.

The Government has already restricted housing benefit to a room in a shared house for those under 26? Not all kids have middle class parents with spare beds to fall back on if they become unemployed or sick. Remember who introduced bedroom tax and got rid of spare bedrooms?

There is a tiny, tiny number of Council tenants (why only Council tenants? what about housing association tenants? Does someone like him know there is a difference?) who earn that amount of money. There is an argument about increasing their rent levels but I thought Tories were against means testing? Housing Associations have been given the power to charge variable rents but have, by and large, decided that it would be more costly and bureaucratic to implement than they would gain.

Frankly we need more better paid tenants living in social housing. We don't want benefit ghettos or private gated estates - we want genuine mixed communities with headteachers, entrepreneurs and doctors living alongside the retired, the low paid and the unemployed.

None of above is going to save £25 billion. The "Today" presenter gave Osbourne a hard time over his claims but like nearly everyone in the media, seems to accept that there is no alternative to cuts, cuts, cuts? What about increase in taxation for those wealthy enough to pay?

I had cooled down by the time I got to Stratford (aka soaked).  West Ham Labour Party CLP had organised leaflet protests against train and bus fare increases outside Stratford, Forest Gate, Canning Town and Royal Docks stations (see photo collage).

London has the highest public transport costs in the world. Fares under Tory Mayor Boris are rising 3 times more than wages. He is also getting rid of the staff who keep passengers safe late at night. This year's protest was at stations all over London and the South East.

It was also the first day back to work after the holiday for many workers. Fittingly, it is called "Blue Monday". I hope people in this years May election remember Osborne and the Tory fare increases of Blue Monday and vote Red.

Monday, January 06, 2014

Hayes and a Pioneer of Council Housing

I have been meaning to cross post this charming story of early London municipal socialism from "Hayes People History" for a while.

Councillor Robert William Gunton was a Civil Servant who came to Hayes which is now in Hillingdon, West London in 1913.  He became Chair of the Council in 1917.

Hayes was one of the first Labour Councils in Britain who as early as 1914 appointed "a sanitary inspector to "compel landlords to put their houses in a proper state of repairs".

In April 1919 Gunton was involved in ensuring "May Day" became an official Council holiday, seconding the resolution he referred to Oliver Cromwell having done away with it because of heavy drinking. "They had reached a stage he thought when working class did behave themselves better". Hayes became one of the first councils in Britain to allow their employees to enjoy International Workers Day, May 1st as a public holiday.

It was Councillor Gunton who moved the resolution at the Special Hayes Urban District Council held on 12th July 1919 not to participate in the national "Peace Celebrations" on July 1919, on the grounds of cost and glorification of war, an all most unprecedented move
.

Gunton with other local councillors pioneered the Building of Council Housing in Hayes. He was Chair of Housing when in 1920 Dr Addison, Minister of Health laid the first brick of a planned 2000 home estate.

The first building contractor was a certain Robert McAlpine!

"Each Council house was estimated to cost £675 and it was expected that two houses a day would be built, however due to the shortage of bricklayers they initially completed just three quarters of a house.

The situation with the bricklayers took a disastrous turn in April 1920 when the bricklayers went on strike. Councillor Gunton once again came to the rescue and secured agreement from both sides to end the dispute winning the praise of Sir Robert McAlpine.

Councillor Gunton was keen that the new Council estate would enjoy facilities such as shops as well as a Council run Cinema and a Public House (Pub) run on the Carlisle lines (Carlisle had successfully and profitably put its pubs under state control during the war to regulate alcohol especially spirits consumption as a safety measure as Carlisle was a Munitions town).

But not everyone supported the Council Housing scheme the local Conservatives argued that the workers houses should be built by factory owners and not paid for by the ratepayers.

Such was the support for the Council housing scheme locally that by April 1920 the local newspaper could announce that every member of Hayes Council was now a Labour Party member - 100% Labour.

In January 1921 Councillor Gunton could claim with some justification that

"Hayes was one of the few and probably only councils in the country that could say there were no slums existing in their district"

The Council house scheme was so popular, that delegations flooded in to see the developments, delegations from councils across the United Kingdom and as far away as America Austria and Japan.

Despite the cost, Councillor Gunton could boast in 1924 "The Labour Party was generally associated by the reactionary press with high rates, well the rates in Hayes did not happen to be high rates".

Finally R.W. Gunton was elected as a Labour Middlesex County Councillor Alderman during the first Labour controlled Middlesex County Council in 1946.

Given Councillor Gunton's role in pioneering and securing large scale affordable and good quality housing for many generations of Hayes residents, it is a shame his work and deeds are not better known.

Michael Walker

Sunday, January 05, 2014

Great Tory Train Robbery - Monday 6 January

Protests tomorrow at over 200 stations in London. 

Check out #GreatToryTrainRobbery and #CostofCameron

In West Ham CLP activists will be at Stratford Railway station from at least 8am and Forest Gate from 7.45am.

Check out London Labour website for other protests.

Update: Canning town 7am

"Russia Today" Max Keiser is of course completely bonkers but... occasionally has a point

I often get bored with watching BBC Breakfast TV since after a while they just repeat things so I surf the goggle box. "Russia Today" is often pretty interesting even though it usually makes Fox News look like its run by wishy washy  liberals.

It has a regular show by a completely manic "Shouty" American financial pundit called Max Keisor, who if you ignore the paranoia and foaming at the mouth, occasionally makes some serious points. Such as this :-

"Compare the complete lack of a political response to financial regulatory failure re: HSBC’s money laundering for Mexican drug cartels [in a drug war known to have killed 40,000], with David Cameron’s grand rhetoric and police crack down following the August 2011 riots.

Looting by those in austerity derived poverty as a direct result of white-collar bank crime is met with the full force of the law. UK citizens may as well be Taliban “enemy combatants” fighting a losing war against corporatism, as they receive the full wrath of the ‘justice system’ with 24 hour courts and punitive 6 month jail sentences for stealing water bottles.

(deleted paragraph because I haven't a clue if really true. grayee)

The total cost of the August 2011 riots was estimated at £0.5 billion. The total UK cost of the 2008 financial caused by financial deregulation, bank fraud and management failures was estimated at £1.2 trillion for banking losses alone, to say nothing of the lives and businesses ruined globally, with 100 million people thrown back into poverty according to the UN.

4000 people were arrested following the UK riots, with 701 receiving custodial jail sentences!
How many bankers are in jail as a result of £500 trillion LIBOR and Forex market manipulation, or PPI mis-selling for looting in the City of London? That’s right, zero.

The unfortunate truth is that we live in a two-tier justice system, where the banking criminals are above, or outside of the law, and it’s high time something was done about it....".
e complete lack of a political response to financial regulatory failure re: HSBC’s money laundering for Mexican drug cartels [in a drug war known to have killed 40,000], with David Cameron’s grand rhetoric and police crack down following the August 2011 riots.
Looting by those in austerity derived poverty as a direct result of white-collar bank crime is met with the full force of the law. UK citizens may as well be Taliban “enemy combatants” fighting a losing war against corporatism, as they receive the full wrath of the ‘justice system’ with 24 hour courts and punitive 6 month jail sentences for stealing water bottles.
Lord Stephen Green on the other hand, as HSBC CEO and “market maker” is deemed outside of the law, and lionised for his financial looting. Granted a plush role as UK Government Trade Minister, escaping any responsibility for his own complicity in massive HSBC fraud, despite ignoring prior warnings to cease and desist from US regulators.
The total cost of the August 2011 riots was estimated at £0.5 billion. The total UK cost of the 2008 financial caused by financial deregulation, bank fraud and management failures was estimated at £1.2 trillion for banking losses alone, to say nothing of the lives and businesses ruined globally, with 100 million people thrown back into poverty according to the UN.
4000 people were arrested following the UK riots, with 701 receiving custodial jail sentences!
How many bankers are in jail as a result of £500 trillion LIBOR and Forex market manipulation, or PPI mis-selling for looting in the City of London? That’s right, zero.
The unfortunate truth is that we live in a two-tier justice system, where the banking criminals are above, or outside of the law, and it’s high time something was done about it.

Read more at http://www.maxkeiser.com/2014/01/rbs-grg-the-guantanamo-bay-where-smes-are-sent-to-die/#52AUMduU8DW1RRzJ.99
The total cost of the August 2011 riots was estimated at £0.5 billion. The total UK cost of the 2008 financial caused by financial deregulation, bank fraud and management failures was estimated at £1.2 trillion for banking losses alone, to say nothing of the lives and businesses ruined globally, with 100 million people thrown back into poverty according to the UN.
4000 people were arrested following the UK riots, with 701 receiving custodial jail sentences!
How many bankers are in jail as a result of £500 trillion LIBOR and Forex market manipulation, or PPI mis-selling for looting in the City of London? That’s right, zero.
The unfortunate truth is that we live in a two-tier justice system, where the banking criminals are above, or outside of the law, and it’s high time something was done about it.

Read more at http://www.maxkeiser.com/2014/01/rbs-grg-the-guantanamo-bay-where-smes-are-sent-to-die/#52AUMduU8DW1RRzJ.99
The total cost of the August 2011 riots was estimated at £0.5 billion. The total UK cost of the 2008 financial caused by financial deregulation, bank fraud and management failures was estimated at £1.2 trillion for banking losses alone, to say nothing of the lives and businesses ruined globally, with 100 million people thrown back into poverty according to the UN.
4000 people were arrested following the UK riots, with 701 receiving custodial jail sentences!
How many bankers are in jail as a result of £500 trillion LIBOR and Forex market manipulation, or PPI mis-selling for looting in the City of London? That’s right, zero.
The unfortunate truth is that we live in a two-tier justice system, where the banking criminals are above, or outside of the law, and it’s high time something was done about it.

Read more at http://www.maxkeiser.com/2014/01/rbs-grg-the-guantanamo-bay-where-smes-are-sent-to-die/#52AUMduU8DW1RRzJ.99
Compare the complete lack of a political response to financial regulatory failure re: HSBC’s money laundering for Mexican drug cartels [in a drug war known to have killed 40,000], with David Cameron’s grand rhetoric and police crack down following the August 2011 riots.
Looting by those in austerity derived poverty as a direct result of white-collar bank crime is met with the full force of the law. UK citizens may as well be Taliban “enemy combatants” fighting a losing war against corporatism, as they receive the full wrath of the ‘justice system’ with 24 hour courts and punitive 6 month jail sentences for stealing water bottles.
Lord Stephen Green on the other hand, as HSBC CEO and “market maker” is deemed outside of the law, and lionised for his financial looting. Granted a plush role as UK Government Trade Minister, escaping any responsibility for his own complicity in massive HSBC fraud, despite ignoring prior warnings to cease and desist from US regulators.
The total cost of the August 2011 riots was estimated at £0.5 billion. The total UK cost of the 2008 financial caused by financial deregulation, bank fraud and management failures was estimated at £1.2 trillion for banking losses alone, to say nothing of the lives and businesses ruined globally, with 100 million people thrown back into poverty according to the UN.
4000 people were arrested following the UK riots, with 701 receiving custodial jail sentences!
How many bankers are in jail as a result of £500 trillion LIBOR and Forex market manipulation, or PPI mis-selling for looting in the City of London? That’s right, zero.
The unfortunate truth is that we live in a two-tier justice system, where the banking criminals are above, or outside of the law, and it’s high time something was done about it.

Read more at http://www.maxkeiser.com/2014/01/rbs-grg-the-guantanamo-bay-where-smes-are-sent-to-die/#52AUMduU8DW1RRzJ.99

Saturday, January 04, 2014

"The world must have gone mad" Help to Buy You Negative Equity

Steve Hilditch from Red Brick New Year's message yesterday on the danger of this largely "Artificial and temporary recovery based on property inflation" is a welcome warning.

The Government flagship "Help to Buy" programme is helping to overheat the already unaffordable property market in London and the South East and push prices even higher.

Even that well known lefty organisation, the Institute of Directors thought that the introduction of "Help to Buy" meant "The world must have gone mad"

What on earth is going to happen when interest rates rise? Which they will as surely as winter follows summer.

BBC report "The number of people using more than half their disposable income to repay debt could rise from 600,000 to a 1.1 million by 2018 if interest rates rise to 3%, said the Resolution Foundation.
If rates hit 5%, two million households would face huge repayments, it said".

If (when) rates increase people will not be able to afford their payments and they will default causing house prices to crash. 

Bank of England interest rates are currently at a historic low of 0.5%. The governor has indicated that he will increase rates when unemployment is below 7%. Unemployment is now 7.4%.

I can remember the housing crash of the early 1990s when the value of my property halved. It took years and years before it came out of negative equity.  Remember in 1991 interest rates were 15%!  15% is unlikely now but 5% is a long term trend. If you buy a property think whether your could afford it if rates doubled.

What this Government is doing is helping vulnerable first time buyers into negative equity. All for the sake of a boost to their election chances in 2015. 

Hat tip picture Henry Pryor

Pensioners being ripped off

A good article here on the arguments put forward by "pensions campaigner and former government adviser Dr Ros Altmann" that pensioners who buy "annuities" when they retire are being ripped off.  Annuities are insurance products that you buy when you retire using the money you have saved while at work in a DC (Direct Contribution personal pension) scheme.

"The Financial Services Consumer Panel, which monitors the FCA, recently published a report after a 12-month study into the annuity market. Investigating 15 online firms, and using a £49,950 pension pot example, minus a 25% lump sum, it found fees for the same service went from 0.75% to 3.35%, with costs ranging from £281 to £1255".

Not only fees but annuity "rates" (how much you get after fees) in some companies (even well known ones such as the Pru) are simply rubbish. Even the better schemes offer poor value due to the current price of government bonds called gilts which determine how much you get from annuities.

I am pleased that she highlighted that most annuities are "single life" only. That means unlike Defined benefit pension schemes that cover partners automatically - with a "single life" annuity when the retiree dies - his or her partner get nothing.

In my workplace most employees are in a DC scheme. I dread the day that I will called to see the spouse of a retired union member who wants to know what will they now live on? That day will come very soon.

What was not mentioned is how most people also buy a "level" annuity when they retire. This means  that there is no protection against inflation so each year their pension is worth less and less.

According to this site if you retired 5 years ago inflation would have reduced the value of your level pension by nearly 14%. If you retired 10 years ago by a staggering 30%.

What a mess. Pensioners are being cheated by excessive fees, poor returns and no protection for their loved ones or against inflation.

We still desperately need modern collective Defined Benefit pensions for all.

Hat tip Dave Watson via UNISON Weekly News.

Friday, January 03, 2014

Seeing Nick Griffin go bankrupt: Priceless

As Ricky Gervais put it tonight - Nick Griffin never did like the term "in the black". Check out Lily Allen lament for Nasty Nazi Nick.

An Evening with Rachel Reeves MP - East Ham Town Hall 29 Jan 2014

East Ham CLP invites you to “An Evening with Rachel Reeves", MP and Shadow Secretary of State for Work and Pensions, in the company of Stephen Timms MP, Sir Robin Wales, Newham
Mayor and Len Duvall, Chair of the London Labour Party.

Thursday, January 02, 2014

John's Facebook Top 20 Moments 2013



Facebook said these were my top 20 picture moments of 2013 and were arranged in this order for some reason or other. I love the music of The Unthanks. The only addition is the last which is the picture of the cutest baby ever, Evan Charles Frisby, who is my Great Nephew and was born on December 22nd.  I had a lovely cuddle of him at his Grannies (my little sister!) in Lincolnshire yesterday evening. 

Wednesday, January 01, 2014

Truth, Lies and Migrants: Jan 1 2014

First post from 2014. From today according to the Daily Mail et al the UK is about to be overrun with migrants from Romania and Bulgaria. 

Least we forget about the estimated 1 million Brits in Spain! Hat tip SWTUC.