Category Archives: Economy
He asks how climate change can be tackled effectively, stressing that the poorest countries should not focus on reducing their CO2 emissions, which are already extremely low – three-quarters of the population of sub-Saharan Africa lacks access to electricity, and commenting: For low-income countries, development has to be the priority, and this relies on energy. If that energy is to be green, then OECD countries should take responsibility, providing technology and financial support. “The great global injustice of climate change is that the peoples who have contributed least to the problem are the most vulnerable to its effects”.
Ann Pettifor’s book The Case for the Green New Deal succinctly explains what the Green New Deal (GND) is, where the idea came from, why it’s necessary, and how to make it happen. It was conceived a decade ago by a group of British economists and environmentalists and recently popularised by progressive US congresswoman Alexandria Ocasio-Cortez.
GND measures to decarbonise economies which will create millions of jobs include:
- investment in renewable energy and zero-carbon public transport;
- upgrading buildings for energy efficiency;
- building “smart” distributed power grids to provide affordable clean electricity to all; reorganising the food system;
- ending subsidies to the fossil fuel industry;
- and prioritising basic needs.
But though OECD countries need to cut emissions by 80% over the next decade fiscal revenue isn’t sufficient to finance large-scale green development. Economist and an expert in monetary theory, Ann Pettifor is well placed to describe how the GND can be funded.
With a tightly regulated financial system based on publicly-controlled and accountable central banks, it’s possible to fund a Green New Deal that will eliminate waste, transfer green technology to the rest of the world and build a fairer, more equal society.
Citing China’s effective deployment of capital and exchange control measures, she argues that in order to implement this programme, public control over the monetary system must be regained, offshore capital must be brought back onshore and capital flows regulated and taxed.
The GND represents a set of economic and political reforms that, in combination, form a platform capable of uniting hundreds of millions. As such, it should be a key plank for left parties in Europe, North America and Australia.
Martinez comments: “The cost of failure will be climate breakdown: vast areas of the planet rendered uninhabitable; hundreds of coastal cities (including New York, Shanghai, Hong Kong, Mumbai and Lagos) permanently submerged; food and water scarcity; vicious climate wars; hundreds of millions of climate refugees”.
He ends: “If a Corbyn-led Labour government can implement its version of the GND (labelled the Green Industrial Revolution), this will be a huge boost for the global battle to save the planet”.
He had seen the estimate by the Federation of Small Businesses in Time to Act: The economic impact of poor payment practice that large companies neglecting to settle their bills cause about 50,000 businesses to fail every year.
Research from Lloyds Banking Group, which analysed the companies that reported their payment practices, found that 65% took more than 30 days to settle invoices and 21% took more than 50 days.
And the Small Business Commissioner (SBC), set up in December 2017 to help the UK’s 5.7 million small businesses tackle late payment, adds:
- a third of payments to small businesses are late;
- 20% of small businesses have experienced cashflow problems due to late payments;
- and that if small businesses were paid on time it could boost the economy by an estimated £2.5 billion annually.
James Hurley, Enterprise Editor, had earlier explained that rules have been designed to force large companies to reveal how long they take to pay their suppliers: companies who meet two of three qualifying criteria: £36 million annual turnover, an £18 million total balance sheet or at least 250 staff.
But there is a loophole: where services are contracted and paid for by group subsidiaries that fall below these thresholds, there is no duty to report.
Debbie Abrahams, the Labour MP, said that suppliers would “continue to be unfairly squeezed” unless the loophole was addressed and other MPs, together with representatives of small companies, are calling for the “duty to report” legislation to be rewritten.
One example is that of G4S, the outsourcing group, was criticised by Paul Uppal, the small business commissioner, for “persistent late payment” of a supplier. G4S, a member of the FTSE 250 share index, paid this supplier through a subsidiary that does not meet the threshold.
The legislation has not yet been rewritten, though a report published by the government’s Business, Energy and Industrial Strategy (BEIS) Committee last December acknowledged the truth of these allegations and urged government to introduce a tougher regime to tackle larger companies who treat small businesses ‘disgracefully’ by enforcing long payment terms, paying their suppliers late or using the ‘loophole’ to evade scrutiny.
The subject of late payment should appear in Labour’s election manifesto
Colin Hines, co-ordinator of the Green New Deal group, draws attention to Kate Proctor’s account of today’s vote at the Labour Party’s autumn conference in Brighton, backing a motion by the campaign group Labour for a Green New Deal to set a target to achieve net zero and guarantee green jobs, working with scientists and trade unions to work towards net zero carbon emissions by 2030.
For the record, the members of this group, who have been working together for at least ten years, are Larry Elliott, Economics Editor of the Guardian, Colin Hines, Co-Director of Finance for the Future, former head of Greenpeace International’s Economics Unit, Jeremy Leggett, founder of Solarcentury and SolarAid, Caroline Lucas, Green Party MP, Richard Murphy, Professor of Practice, City University, Director Tax Research LLP, Ann Pettifor, Director, Policy Research in Macroeconomics (PRIME), Charles Secrett, Advisor on Sustainable Development, former Director of Friends of the Earth, Andrew Simms, Co-Director, New Weather Institute; Coordinator, The Rapid Transition Alliance, Assistant Director, Scientists for Global Responsibility and Geoff Tily Senior Economist, TUC.
In 2015, Jeremy Corbyn wrote his Protecting Our Planet manifesto
In it, he said he would stand for Britain providing international leadership on climate change and the socialisation of our energy supply leading an end to the era of fossil fuels. Measures to be taken would include:
- building a modern, green, resource-efficient economy – creating 1 million new green climate jobs,
- ensuring everyone has access to a low-carbon, affordably heated home and
- tackling the air pollution crisis in our big cities and committing to full independent public inquiry into levels of air pollution.
The Green New Deal proposals to retrofit zero-carbon measures on social and council housing and public buildings relate to the first two measures listed and there are many more, which would usher in a green industrial revolution creating tens of thousands of good, green jobs across the country. Lauren Townsend, a trade unionist and spokesperson for Labour for a Green New Deal, said: “It is time for our movement to come together to build a Green New Deal from the ground up in every town, village and city.”
In May, Jeremy Corbyn addressed a rally after Parliament had agreed to take action on climate change following Labour’s call. After delegates passed the motion today, Labour officially backed the Green New Deal proposition which should be added to its next manifesto. Anti-climate change activists have said it is the most radical set of left-wing policies to be passed by party members in a generation.
Will the next government move more freight by rail and waterways to reduce air pollution and road accidents?
Money Supermarket reports that more than half of fatal accidents on British roads involve HGVs, though lorries make up only 10% of the traffic. HGVs are involved in one in five fatal crashes on A-roads and an HGV is five times as likely to be involved in a fatal accident on a minor road than other traffic.
Department for Transport figures are quoted, showing that 82% of articulated heavy goods vehicles exceeded the 50-mph speed limit on dual carriageways and 73% broke the 40-mph limit on single carriageways in 2013. Despite this, in 2015 government raised the speed limit for HGVs travelling on single and dual carriageways in England and Wales. An HGV over 7.5 tonnes can now travel along a single carriageway at 50 mph, up from 40mph. The speed limit for HGVs over 7.5 tonnes travelling on dual carriageways increased from 50mph to 60mph.
The arrival of even bigger HGVs (double articulated mega-trucks) and ‘platooning’ trials pending with a driver in the first cab, controlling the following vehicles has raised further safety concerns. Last year, the Government announced that trials of partially self-driving platoons of lorries were set to take place on roads in the UK by the end of 2018.
Edmund King, president of the AA pointed out that we have some of the busiest motorways in Europe with many more exits and entries – and that platooning may work on the miles of deserted freeways in Arizona or Nevada but this is not America.
A few recent accidents:
The northbound carriageway between junctions 38 (Huddersfield) and 39 (Wakefield) was closed after an HGV overturned following an earlier collision with a car. The HGV was fully laden with glass bottles that had to be unloaded and diesel that had spilled across all three carriageway lanes had to be cleared.
M6 was shut after lorry crash between J12 and J13, near Cannock. The HGV hit the central reservation and later caught fire. Three lanes reopened southbound just after 12:30. Northbound remained closed most of day.
The M6 northbound between J14 (Stafford) and J16 (Stoke-on-Trent) was closed following an HGV fire.
The A38 was closed in both directions, between the A513 near Fradley and B5016 near Burton on Trent due to a crash and an overturned HGV. Around 40 tonnes of grain were spilled in the carriageway.
Police officers investigate the collision involving an HGV, between J25 and J24 near Taunton.
An HGV driver died following a collision on the M6 when his lorry burst into flames after colliding with a safety barrier.
There were severe delays on the M6 southbound between Junction 16 and Junction 15 due to two lanes being closed following an HGV fire. There was approximately seven miles congestion back to J16.
There is an alternative:
A Route One article reviewed reports by continental researchers who believe that their findings offer some support to policies being developed at Pan-European level to promote new multimodal transport corridors. These involve rail, inland waterways, short-sea (coastal) shipping. The researchers concluded that shifting a greater proportion of freight from roads to rail, boat and/or ship for part of its journey would be a sustainable way of meeting continuing rises in freight demand and reducing numbers of road accidents.
The Freight by Water 2018 conference, part of the Inland Waterways Transport Solutions project, highlighted how switching freight from road and rail to water can compete on cost and cut emissions. Inland waterways across the world have proved to be effective and efficient channels for moving everything from beer to building materials.
The conference highlighted several success stories and discussed several opportunities for freight by water, including the Leeds Inland Port at Stourton, which could take at least 200,000 tonnes of freight traffic off the roads. Its conclusion:
The time is right to increase freight using inland waterways throughout the UK and across Europe as an alternative to road and rail freight.
Richard House draws attention to an article by Jeremy Corbyn, leader of the Labour party, which had been shared 1600 times at 15.48 today.
Jeremy Corbyn asserts that Boris Johnson’s government wants to use no deal – which would destroy jobs and cause shortages of food and medical supplies from day one and hand our public services and protections over to US corporations – to create an offshore tax haven for the super-rich and sign a sweetheart deal with Donald Trump.
Meeting at the G7 in Biarritz
He reminds us that in 2017, Boris Johnson, when foreign secretary, proclaimed that there was no plan for no deal because they were going to get a deal, continuing: “But clearly they haven’t got a deal. And now, running scared of being held to account for his reckless plans for a Trump-deal Brexit, Johnson has decided to shut down parliament to stop them doing so”.
Adding that, ‘in the maelstrom of the coming days and weeks’, all should remember that sovereignty doesn’t rest in Downing Street, or even in parliament, Jeremy Corbyn states that the democratic way forward, when a government finds itself without a majority, is to let the people determine the country’s future and call a general election which will give them the chance to have the final say in a public vote, with credible options for both sides, including the option to Remain.
He ends by expressing his determination to ensure that Labour will bring people together by giving hope and confidence that a different future is possible and that real change can be delivered for every region of this country.
A Moseley resident draws attention to an article by Peter Oborne (left), recalling that Jeremy Corbyn’s policies struck a chord with some voters as he cut the Tories’ Commons majority in the 2017 General Election. These included the intention to impose tougher wealth taxes, to renationalise great swathes of the country’s public utilities, to cancel our Trident nuclear defence system and to introduce rent controls.
He added: “Above all, they saw a man who stuck to his principles, unlike David Cameron and Tony Blair who they regarded as snake-oil salesmen . . . I believe that voters were right to admire Jeremy Corbyn back then”.
Oborne expressed later disappointment: “He’s sat on the fence for so long that the iron has entered his soul, as early 20th-century PM David Lloyd George once said of an opponent. . . Rather than being too Left-wing, I’m convinced Corbyn is not radical enough. Very occasionally we get a reminder of his old passionate commitment to Left-wing politics”:
- He has been outspoken in his opposition to U.S. warmongering in the Persian Gulf against Iran
- He is the only frontline British politician to condemn India’s illegal clampdown in Kashmir
Has Corbyn been “spineless and far too willing to change his mind?”
Oborne notes that in 2013 Corbyn (right) was one of a dozen Labour MPs who voted in the Commons against spending seed money on HS2 high-speed rail project. But then he changed his mind and voted for its construction. The following year, Labour’s election manifesto supported the new link.
Less cogent is his criticism of Corbyn because in the 1975 referendum, he voted for Britain to leave the EU’s predecessor, the Common Market and in the 2016 referendum, he changed his mind and campaigned for the UK to stay. The writer believes that this is a perfectly reasonable attitude, shared by many, because:
- the EU has seen peace between its member states, despite their history,
- poorer regions have received funding,
- many of the EU’s environmental policies have been beneficial
- and the economies of member states have become so closely interwoven that a break would cause serious and prolonged disruption to the British economy.
Oborne continues: “But U-turn Jeremy then supported a Commons amendment in January demanding that we stay in the EU for longer and then called for a permanent customs union and close alignment to the single market . . . and now his Labour party wants a second referendum”
Towards the end he writes: “Next month will mark (Corbyn’s) fourth year in the job and it looks more and more as if he has flunked that chance. His influence is waning by the day. On October 31, with Brexit, this country faces one of the most important peacetime decisions for generations. It will be the last proper chance for Corbyn to show leadership”.
In the Financial Times, noting that Conservatives and Labour are ‘neck and neck’ in the polls, Jim Pickard – formerly a severe critic of Jeremy Corbyn – wrote today “With British politics in a state of acute flux, there is increasing interest from business leaders about Labour’s policy proposals”.
At the launch of the annual Living Standards Audit by the Resolution Foundation, an independent think-tank that focuses on low pay, the Independent reports that shadow chancellor John McDonnell (right) will announce details of Labour’s commitment to ending in-work poverty over the course of the next parliament, due to cover the years 2022-27 unless brought forward by a snap election.
The Joseph Rowntree Foundation said last year that ‘in-work poverty is the problem of our times’ and McDonnell will make a commitment to ending this modern-day scourge, eliminating it by the end of Labour’s first full Parliamentary term.
In September it was reported here that the Financial Times appeared to have left the anti-Corbyn/McDonnell media caucus, somewhat warming to the shadow chancellor. Following Jim Pickard’s first respectful report on any aspect of Labour policy, an article, by Jim O’Neill, chair of the Chatham House think-tank and former Treasury minister, had the headline, “The UK opposition steps into an economic void left by a government grappling with Brexit”.
The second sign was the FT’s comment in a December article that the UK lacks the kind of community banks or Sparkassen that are the bedrock of small business lending in many other countries adding: “When Labour’s John McDonnell, the shadow chancellor, calls for a network of regional banks, he is calling attention to a real issue”.
As a paragraph in his address today says: “As Chancellor in the next Labour Government, I want you to judge me by how much we reduce poverty and how much we create a more equal society, by how much people’s lives change for the better. Because that is our number one goal.”
So writes Alan Simpson (left), formerly Labour MP for Nottingham South.
Labour has to shift the focus to the health of the planet that is perilously at risk. More than 1,000 doctors (including 40 professors and former presidents of royal colleges) now call for widespread “non-violent civil disobedience” over Parliament’s failure to address the unfolding ecological and health emergency staring us in the face.
Everything, absolutely everything, must focus on two things. Labour has to block any prospect of a no-deal exit from the EU on October 31.
The trouble is that Labour is in almost as much of a mess as the Tories. At a time when the government is in complete disarray, Labour’s standing in the opinion polls is actually falling. Labour isn’t seen as offering the bigger, alternative vision and Brexit ambiguity looks more like weakness than leadership.
Mischief-makers are having a field day with identity politics in order to deflect attention from the structural issues that divide society, the deeper grievances; poverty, unemployment, squalor, ill-health, hopelessness, the towering evils the 1945 Labour government set out to tackle. As you set out to address them, the divides of race and religion melt to the sidelines.
We have to address the real “health disruptors” that stare us in the face:
- London’s current heatwave doesn’t compare with temperatures in France; 1.5°C higher than their 2003 heatwave in which thousands died.
- Catalonia is on fire.
- Guadalajara, in Mexico, woke up to find districts buried in two metres of freak hailstones, the size of golf balls.
- Similar “golf balls” had shattered windscreens in southern France only two weeks ago, just before the climate roller-coaster raced into overheating.
- The last 40 years has seen an 80% fall in bee and insect populations that pollination (and biodiversity) depends on.
It is all part of the unrecognised war we conduct upon ourselves (and our children)
So, back in Britain, where is the press challenging politicians on the existential crises facing our soils, water supplies, air quality, ecosystems and biodiversity?
On all the really big issues of the day, the press (and most politicians) have gone AWOL. One reason is that there are now no answers that don’t involve systems change.
The situation cries out for an urban mining, circular economics, that reclaims compounds and elements from products and buildings, reusing and recycling materials – including IT and electronic waste – that are finite rather than infinite. Product lifetimes have to be dramatically increased (along with the repair services to underpin them).
- There is as much copper circulating in the economy (or accumulating as scrap) as probably remains in the earth.
- Britain imports all of the 17 rare earth elements we rely on for everything from lasers to cancer drugs, from mobile phones to surgical supplies. Virtually all are currently lost as exported waste or inefficient recycling.
- We import 12.3 million tonnes of iron ore each year but produce 10m tonnes of scrap iron and steel, the bulk of which gets dumped abroad.
- The weight of clothing we discard is equivalent to the weight of clothing we import. And Britain discards the same weight of electronic equipment each year as the equipment we buy.
The Tory leadership race is dominated by prejudice and pandering to the rich and powerful. It will chase neoliberal delusions, no matter what social divisions or ecological disasters come in their wake. Labour must step beyond the politics of “me” and into the survival of “we.”
Simpson ends, “In doing so, I don’t care if my culture, my race, my sexuality, nationality or religion comes a poor second. The changes Labour must deliver, within the coming decade, will determine whether our children and grandchildren have the chance to sort these things out for themselves”.
Alan Simpson now advises the party on environmental issues. His article may be read in full here: