Are Royal Mail Cooking The Books?

Royal Mail not only have a reputation for losing letters, they have now mysteriously turned a £121m profit (see chart on left) into a £100m+ LOSS for 2010-11, if Sky News has it's figures right. That means around £220m has vanished from Royal Mail letters in one year, a figure quite unbelievable yet some how convenient for those who wanted to privatise this national service.

While mail volumes are expected to show a 5% decline for 2010-11, the head count reduction more than offsets that decline - meaning the £100m 'loss' has appeared, in yet another accountancy trick of massaging the figures in order for Royal Mail to paint a grim picture ahead of industrial action and privatisation.

Is Royal Mail really in need of a private cash injection as ConDem MP's claim or are we being hood winked into allowing our national daily postal service to be handed over to private hands in order to eventually end the daily delivery (as has now happened in Holland following privatisation of it's postal service)?

The truth is - Royal Mail letters are NOT losing money, it is the cost of modernisation that has cost the service over £220m during the past year. As Sky reports, "The costs of the company's modernisation programme, led by Moya Greene, the new chief executive, have been taken into account as part of the reported numbers for the first time." For those not familiar with what modernisation at Royal Mail entails - it means the purchase of thousands of new vans and equipment for Royal Mail's new delivery methods. The cost will be offset by the reduction of staff involved with delivering the mail (according to the same report, up to 40,000 jobs could be at risk). New sorting machines are being deployed around the country and it seems that these costs are now being added to the balance sheets, even though the previous government loaned Royal Mail £1b for it's modernisation programme.

Royal Mail will now try and present a bleak picture with the aim of trying to scare employees and give the government the free hand as it tries to sell off the nations silverware on the cheap. Royal Mail workers have bent over backwards since the liberalisation of the postal market by New Labour at the start of this millennium. They have accepted below inflation pay rise while at the same time seen thousands of jobs disappear, all in the name of 'moderisation'. London workers are facing the prospect of compulsory redundancies if Royal Mail closes the three mail centres in the capital.

The CWU have tried to work with Royal Mail, putting forward alternatives that would help build the business but Royal Mail have consistently ignored such proposals as they remain hell bent on selling off assets ahead of privatisation. Postal workers know the stakes are high, and they are often the last line of defence in protecting this valued public service. The Royal Mail financial figures may not match up, but the need for co-ordinated industrial action matches. It is time workers stood up to the ConDem government and opposed the sell off of Royal Mail. Posties need to see through the Royal Mail propaganda that will be coming their way over the coming months and stand united in defending jobs and conditions.

Anarchist Numbers To Rise In UK

The Sex Pistols sang about 'Anarchy In The UK' but the reality has hit the streets in 2011 as a growing number of young people take direct action rather than just protesting via a demonstration. Numbers of anarchists will soar as students and some of the 1m young people who can't find a job turn away from traditional political parties and take matters into their own hands.

London witnessed what anarchists could do during the TUC 'March For The Alternative' on Saturday 26th March, as windows at the Ritz hotel were smashed and paint thrown at the luxury hotel along with Topshop being attacked due to tax avoidance by Sir Philip Green and others. Viewers on the BBC saw anarchists spraying slogans like 'class war' on buildings as anarchists and police fought away from the main march, which was attended by around 500,000 people.

Many young people not only feel let down by the betrayal of the Liberal Democrats, who had been instrumental in mobilising them to vote in the 2010 General Election - only to sell them out as soon as they got into power! Students were the first in line when the coalition announced it's plans to slash £81b from public spending, seeing them as an easy target. This gave birth to a student movement that put traditional unions to shame - young people didn't spend months in deliberation about whether they should take action or not. They marched in their thousands around the country and especially in London, but their shouts of 'no ifs, no buts, no education cuts' fell mostly on deaf ears for those in government. The over reaction of the police and subsequent kettling only made matters worse for the young people who wanted their voice to be heard.

It is little wonder that students could start turning to more radical outlets in order to get their point across. Direct action is on the increase and no matter how many new laws or impositions Home Secretary Theresa May introduces, anarchists will work around the law to get their point across. The main political parties have failed young people and peaceful demonstrations, in their opinion, do not work. For many anarchists, taking matters into their own hands has become the only option. We will see more events like this over the coming months unless the government gives young people hope instead of hurting cuts.

The UK will see an increase in anarchist action as more young people join in the resistance, unless young people are heard by the ruling class. The new generation have seen rulers swept away in the Middle East and North Africa, they don't want to wait another four years to vote for change (only to get the same sort of policies with a political party that has a different colour). Yet there is an alternative for young people that doesn't involve smashing up shops - it does involve smashing up this old failed capitalist system and replacing it with socialism. Big business and banks need to be taken into democratic public control and run for the millions, not for the millionaires. Education should be free, like it was before Labour and the Tories started charging students. Britain has the wealth, the problem is down to capitalism that ensures the wealth remains in the pockets of the ruling class, while the working class are left to pay for the crisis in capitalism. For more info visit: http://www.socialistparty.org.uk/


Video footage from the BBC of the March 26th 2011 of anarchist action in London


Video footage by ITN of Trafalgar Square as it becomes a battleground

Why We Should Be Angry With The Banks

The governor of the Bank of England has been surprised that the British public have not been as angry with the banks as he thought they would be. Mervyn King told the treasury committee,"The price of this financial crisis is being borne by people who absolutely did not cause it," he said. "Now is the period when the cost is being paid, I'm surprised that the degree of public anger has not been greater than it has." The financial meltdown of 2008 is now being felt, yet widespread anger has yet to erupt. People are beginning to wake up to the reality that the governments £81 billion austerity cuts are linked to the banking crisis - the same crisis that has crippled Ireland.

Banks have continued to reward themselves massive bonuses while thousands of workers have lost their jobs, all of this comes after banks like Lloyds and RBS were bailed out by the government. British taxpayers were forced to handover almost a trillion pounds when the capitalist money markets failed. RBS recently reported an operating profit of £1.913bn (core RBS operating profit was £7.418bn) but told the government it could not afford to start paying back the bailout money. Unsurprisingly the bank somehow managed to find £950m to award themselves bonuses, with over 100 bankers earning more than £1m each. As Len McCluskey, the general secretary of Unite pointed out, "Taxpayers will be baffled as to how it is possible that while we own 84% of this bank it continues to so handsomely reward its investment bankers. This is an institution in which over 21,000 front-line and support staff have been sacked."

Barclays boss was indignant when he faced the Treasury Select Committee earlier this year, Bob Diamond told them, "There was a period of remorse and apology for banks. I think that period needs to be over." Just a few weeks later Barclays announced pre tax profits of £6.07bn and a bonus pool of £2.6bn, with investment banks seeing a salary increase by around 40% over the past year. As a result pay, pensions and bonuses per head at Barclays Capital have risen 20% to £236,000 on average - no wonder Bob Diamond wants to see an end of banker bashing. He must have been annoyed when it became public that Barclays paid just £113m in corporation tax in 2009. The bank was able to use tax avoidance rules in order to protect their bonuses, while at the same time the government began to force the British people to live with £81bn cuts to services.

What will it take for the British people to rise up and say "enough is enough"? Will it be the news that 37% of the FTSE 100 companies did not pay any corporation tax in 2010, while we have been forced to pay an extra 2.5% on VAT this year? Could it be the fact, Lloyds will not pay corporation tax until profits hit £15bn? The bank reported £2.2bn profits, while getting rid of some 26,000 workers since it bought HBOS - many of those former workers have a right to be angry with Lloyds for it's failure.

For the banks it is business as normal, clearly seen when Standard Chartered announced pre-tax profits leaping 19% to a record £3.8bn. The government must be pleased it is being able to rush through it's savage £81bn austerity measures with little or no protest from the vast majority of the British public. Mervyn King hit the right cord, even though his monetary polices and the system of capitalism are a failed system - there is anger at the banks and that anger is not going away. As the cuts begin to hit home and more and more people lose services and jobs, that anger will rise.

Many people are questioning the system and also see the failure of the main parties (Conservative, Labour and Liberal Democrats) as they deal with the effects of the financial meltdown. Scores of young people, sold out because of banker greed, are looking for alternatives to capitalism. A future of sky high university fees, youth unemployment nearing 1m and the prospect of being able to afford a mortgage a distant dream - young people are very angry. Anger will not be enough to change our society, we need to change the system.

A socialist society would see the banks and financial power houses taken into public ownership, ending the big bonus culture as surplus monies are channelled back into society. Instead of a small number at the top benefiting, society as a whole would see investment. Education would be a provided for free because a socialist society would be run differently to this greedy capitalist system. The idea of a democratic planned economy has been growing in a new generation of young people who have seen the terrible effects of capitalism - where the rich get richer while the poor get poorer as the ConDem government role back the advances made by the working class during the past 100 years. Labour no longer represent the working class as they mirror the right wing policies of the Tory party, having sacrificed workers to the gods of the financial markets. We need a new mass workers party and the Socialist Party (England & Wales) are building for this future - a future where young people receive an education that is properly funded, housing is created to ensure everyone can obtain a home at an affordable price and a banking system that is properly nationalised for the use in a planned economy that benefits society.

References:

* Guardian - Lloyds bonuses , RBS profits 

* Telegraph - Corporation Tax avoidance , Mervyn King bank anger , Standard Chartered profits , Lloyds avoid corporation tax

* BBC - Barclays bonuses

* Daily Mail - Bob Diamond on banker bashing

* Socialist Party - Socialism

You Caused This Crisis

There has been a shift in responsibility during the past 18 months, and it seems WE are the ones to blame for the financial crisis. No longer is it the fault of the market speculators, nor the banks that happily lent billions on dodgy deals.

The ConDem government (and Labour), have shifted the debt burden to local councils - basically telling them to cut budgets by around 25%. That means YOUR services get cut because YOU are now to blame for the crisis!
Added to the misery of public sector cuts, employers have used the crisis to their advantage - forcing wages down as inflation climbs and reducing employee head count, even though British businesses have billions in the bank. The business world have used the historic low interest rates to their advantage, paying off debt which has enabled many companies to sit on a large pile of cash.

Little wonder business leaders are now calling on the government to lower taxes further and toughen union laws beyond what Thatcher did in the 80's. Money didn't disappear from our society, it just shifted into the hands of the few. The ruling class now have more of the wealth and YOU are being made to pay for 'the crisis'. While pensions are destroyed and earnings spiral downwards, the big bosses want even more from us - they want us to pay for their crisis. This is a crisis of capitalism, a failed economy that is now destroying the very fabric of society.

Barclays boss, Bob Diamond told the select committee that banker bashing needed to end, while he enjoys around £9m in bonuses during the coming year. He might be surprised to see people are angry that Barclays not only announced £6.07b in profits, but also robbed the UK by paying just £113m corporation tax. It has been business as usual at the banks, the millionaire government ministers do not know the reality of living on the poverty line. Sadly we can't afford a team of lawyers and fiddle our taxes, we are meant to just be grateful we have a job - even if rising inflation means we take a pay cut year after year.

It is a lie to say WE caused the financial crisis, even though the capitalist elite would like us to think otherwise. The £81b of spending cuts that are being forced through now are being blamed on YOU, but the truth is - these cuts are not necessary. They are an excuse to roll back advances made by the working class, our NHS and schools are all under treat because they don't make money for the capitalist system. Britain is heading back to the Victorian times unless we fight with all our might against the cuts. We need a democratic workers led society that runs a system for the benefit of all, not the elite.

Royal Mail Sold Out

The Tory and Liberal Democrates have voted to sell off Royal Mail, with only the House of Lords being able to stop the destruction of this much loved public service. Although Labour were against privatisation this time, we need to remember that Labour sought to part-privatise this 350 year old service.

In private hands Royal Mail will transform from a daily universal UK delivery into a post code lottery, where those in cities will be cherry picked and those in rural areas will eventually see the daily delivery of post eroded and eventually wiped out.

A privately owned Royal Mail will no longer be willing to offer a 'one price goes anywhere'. The logic of cost will compel any capitalist company to exert the maximum profit and posting a letter from Lands End to John O'Groats does not fit into this business model.

Separating Post Office Counters from Royal Mail will signal the end of the Post Office, as the two companies will quickly go their separate ways and the interwoven link will fray. As Royal Mail loses a third of it's income from the Post Office both will become more fragile.

Not only have Royal Mail been sold out by the coalition, the British public will be worse off as this public service will be lost forever. Margaret Thatcher sold off our gas, electricity, water and railways, Labour opened the door for privatisation of Royal Mail, education and our health service. It is of no surprise then that Cameron and Clegg want to get their greedy hands on our remaining public services and sell them to their business friends.

We need to continue to oppose the sale of Royal Mail and call for the investment into the Post Office, as communities and businesses rely on this publicly run service. What next - will we see the BBC sold to the likes of Rupert Murdoch? Privatisation of Royal Mail was defeated before (on it's final reading) as Michael Heseltine was forced into retreat because of the public outcry. A Socialist government would make sure the postal service remained 100% in public hands and used for the benefit of all, not for the greed of the few.

Burning Quangos Becomes A Puff Of Smoke!

Just a few days into 2011 we have been inundated with news stories about the effects of the coalition's savage attacks on ordinary people. While George Osborne has praised his £81b cuts, leading organisations have repeatedly condemned the short-sightedness of the government.

Much fanfare proceeded the burning of the quangos, but now it looks like the £1b of so-called 'savings' have gone up in a puff of smoke. Conservative MP Bernard Jenkin, chair of the cross-party committee, said: "The whole process was rushed and poorly handled and should have been thought through a lot more." The effects of axing education quangos, such as almost 1,000 jobs lost in Coventry from Becta and QCDA are being felt by those who lost their jobs and schools will not save money. This coalition government has repeatedly failed to listen or take heed of warnings.

The police have issued warnings about the dangers of cutting their budgets, not because they want to keep their jobs but because they know the effects of the Comprehensive Spending Review will lead to an increase in crime. As poverty increases, more people will resort to a life of crime and reduced police numbers will only exasperate the situation. The last time the Tories were in power, Thatcher cut public services and police numbers fell - while crime increased under her leadership. The ConDem coalition will end up with the same result if the people of Britain don't fight back.

We all hate waste and quangos that flutter away our money, should indeed be exposed and call to account. Yet the bonfire of quangos has become nothing more than a puff of smoke - the promised £1b 'savings' will not take place and unsurprisingly, more quangos will be created to replace those burned out quangos.

Meanwhile, for the banks it is business as usual with big bonuses continuing to be paid out in 2010/11. Even though Liberal Democrate Vince Cable indicated he would take action against the banks that continued to award big bonuses for failure. Once again the opposite has been true and the coalition have taken no action, instead banks have seen many salaries rise significantly, by up to 40% in some cases. The highlights above are just a few examples of the failure that this capitalist government seeks to pursue it's ideological goals at the expense of the working class.

We need a workers party that will defend the working class in word and in deed, may 2011 be the year that workers unite and fight to gain control of our lives and society!

People Power Stikes Fear Into Government

The government are in fear of a public backlash, the likes of which have not been seen since the anti Poll Tax revolt in Thatcher's Britain. Intent on rushing through reform and billions of pounds in public sector cuts, the coalition government was hoping the 'shock and awe' tactics would stun the nation into submission.

The Tories knew they had not been elected with a clear mandate and were forced to rub shoulders with the Liberal Democrates. Meanwhile the LibDems were only too pleased at finally having the opportunity for a political voice in the UK. After 13 years of Labour rule, the party was in defeat and busy picking up the pieces.

The working class had been beaten into submission by Thatcher and then failed to be liberated under Labour in 1997. The worker's struggle was contained by weak union leadership that made sure members didn't rock the political boat. But given the large scale of cuts announced in October's Comprehensive Spending Review and the unfair nature being imposed on the poorest in society, the working class have finally woken up and started to fight back.

Students have led the way, much too the shame of some of the unions. They didn't wait six months for a national demonstration, unlike the TUC, who are waiting until March 2011 for a national funeral march! By taking action on the streets, students and workers have begun to show the ruling class that WE have the real power and their attempts to suppress,weaken and destroy us will fail.

The fuss created when Prince Charles and Camilla were surrounded by students (who had chosen not to be kettled in by police and were then free to protest where they wanted), showed the fear of the ruling classes. What if ordinary people were to rise up and say no to the ideological cuts? What if people power should gain momentum?

The reaction of the ConDem government and the police clearly shows they will use as much brutal force as needed to suppress such an uprising - even if it is used against school children. Labour will not be the answer for the working class, as they long sold workers out when they sucked up to the markets and became 'New Labour'. Union leaders have an opportunity to lead the struggle against this government as it seeks to smash up the welfare state our forefathers sacrificed so hard for.

The coming year will either see the working class roll over into submission and accept unfair public sector cuts or 2011 will become the year that those from the very bottom of society fought back and beat the ruling classes by refusing to accept their ideological cuts agenda. It's time to make the rich pay for their greed!

How Cameron Cost Us The World Cup Bid

David Cameron cost us the 2018 World Cup bid as his austerity World Cup plans were leaked today. Under the coalition government, cuts would have been forced upon the FIFA World Cup if England were to have hosted the massive sporting event. Below are some of the proposals David Cameron would have introduced:

* The number of players per team would have been cut from 11 to 8, with a three year wage freeze imposed on every team except China.

* Instead of using official FIFA referees, as part of Cameron's 'Big Society' he would replace them with charity workers who have an interest in football.

* Worried about the cost of policing and stewarding at the 2018 World Cup games, volunteers from the public would be drafted in under the banner of "we're all in this together!".

* The 5m extra visitors would have to be revised downwards for fears some may actually want to stay in England long term. Strict control at border control would ensure that only Tory supporters would be allowed into the country. Although if the Lib Dems rebel,the ratio would become 70% Tory, 20% Lib Dems and 10% so rich that a blind eye would be turned.

* The £202m spent on beer would bring extra income for the government, especially once VAT hits 20% in January 2011. A quango would be set up with friends of Cameron looking at ways to hike prices to make sure the poorer people couldn't buy a World Cup ticket.

* The unemployed would be forced to work for free in cleaning up stadiums and streets during the World Cup - this will save the coalition paying minimum wages to cleaning contractors.

* Council houses will be used as guest houses in a new Tory partnership with social housing companies. There will be an acceleration of families being turfed out under new benefit changes, making sure large numbers of homes become available by late 2017. Those families affected, will be moved far enough away from stadiums so as not to cause any disruption.

* By 2018, a large number of young people who couldn't afford the debt of tuition fees will become available following the introduction of a  'Conscription Act' c.2015. Those that are conscripted to public duty will be encouraged to sell World Cup programmes at games, man stalls and generally help fat cats profit from the FIFA games.

The Irony Of Sir Philip Green

Rather ironic that billionaire boss Sir Philip Green has been telling the Con-Dem coalition that he could save the government £20b. The capitalist businessman is no stranger to cutting corners, especially where taxes are concerned. Rather conveniently, his wife Tina relocated to Monaco and so avoids paying any tax in Britain. The Top Shop boss transferred virtually all his assets to his wife  - meaning she would have paid £285m in taxes had she remained in the UK.

If the Green's had not exploited the system, Britain could have put the £285 million too good use for the country. Instead Philip Green has the cheek to lecture us about where he could save taxpayers money. Another prime example where this government has the wrong priorities. Instead of punishing hard working public sector workers, the government should be getting the taxes that belong to them. As the PCS have shown, £25 billion is lost annually in tax avoidance and a further £70 billion in tax evasion by large companies and wealthy individuals (like the Greens!!).


The PCS document 'There Is An Alternative' also highlights that an additional £26 billion is going uncollected. Therefore PCS estimates the total annual tax gap at over £120 billion (more than three-quarters of the annual deficit!). It is not just PCS calculating this; leaked Treasury documents in 2006 estimated the tax gap at between £97 and £150 billion.

The ConDem Boat Rocks

As the ConDem Comprehensive Spending Review looms, it seems that the coalition is beginning to rock as the waters become choppy. Lib Dem energy secretary Chris Huhne now indicates that the £83 billion spending cuts were not "lashed to the mast", according to an interview in the Daily Telegraph. As the Lib Dem support ebbs away, Huhne said the government may have to "tack about" to get to where it wants to if the economic winds change.

Indeed the economic wind has changed, and Ireland is a clear indication of this. As the ConDem coalition follow the same route of tough public spending cuts, it is becoming more clear that Britain will end up on the same disastrous course as Ireland. Pointing towards a double dip recession as thousands lose their jobs and taxes for ordinary people rise.

The ConDem boat is also being rocked by the growing 'Fight The Cuts' groups springing up and the Unions voice is starting to sound the bugle and alert members that the ConDem pirate ship is coming to rob the poor and line the pockets of the rich. For the rich, corporation taxes have been lowered to the lowest in the Western world, while VAT will rise to the highest in living memory - hurting the less well off the most.

Between now and Oct 20th spin doctors from the ConDem camp will be busy trying to minimize the devastating news of massive cuts between 25- 40%. Ramping up talk about the cuts being spread over several years and some cuts being scaled back in a bid to hang on to public support.

Yet a small, but growing army of ordinary people are climbing aboard boats in a bid to fend off the ConDem pirate boat that has come to rob them. The coalition is already weak and should enough people oppose the cuts (like they did with the Poll Tax that ended Thatcher's rule), then the ConDem boat can be sunk before it has has a chance to impose it's all out attack on the working class. Workers should not expect the Labour boat to come and rescue them, for too long this boat has been at the port of big business and failed to represent the working class.

Only a new mass workers party that truly represents the working masses can offer an alternative to the three main parties slash and burn policies, a party that runs the country for the people and not for the minority. In the next election we need to see real Socialists and  independents standing that will stand up for public services.

Why The Irish Will Pay

Irish people are facing massive cuts in public services due to the 2008 banking crisis and the future looks bleak for our European neighbours. Almost £39 billion of taxpayers money will be used to bail out Anglo Irish Bank, while at the same time taxpayers will be forced to pay for the bail out.

As public sector pay drops between 5 - 15% and thousands of jobs are cut, ordinary Irish people are being punished for the greed of bankers and market traders. The nations debt rises towards 32% of Irish GDP, it will not be the bankers who will pay for their greed. Sadly, the Irish people have pretty much rolled over and allowed the government too impose cut after cut. Instead the working class should have collectively risen up and opposed such cuts. Deemed too big to fail, the bailout is further proof that capitalism is a failed system in which speculators and city traders should pay the price for their failure. The same people reaped massive rewards over the years but will not need to pay - the Irish people will pick up the £39b tag. Unless the working class people of Ireland rise up and challenge the ruling class, they will end up paying for the banking crisis for years too come.

In Britain, the ConDem coalition are embarking on the destruction of public services and risking 1.3m jobs in the process - even though the debt does not need to be paid quickly. In fact, it should be remembered that UK debt from 1918 to 1961 national debt was over 100% of GDP. The Irish government cuts have not helped their economy to grow, instead it has contracted even more as unemployment rises and people have less money to spend.

Across the UK, groups are springing up with the aim of defending public services and protecting jobs. Unions like PCS (Public and Commercial Services Union) have produced material to show there is an alternative to the cuts programme.