Category Archives: Planning

Cash or cashless? Vested interests strive to win the argument

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Charles Randell, chair of the government’s Payment Systems Regulator asks a pertinent question:Should access to such a basic financial service be universal, or commercially driven?”

Cashless: “Digital payments are clearly the future”: a spokeswoman for digital payment company Square

One protagonist, Helen Prowse, a spokeswoman for digital payment company Square, spoke at a debate held by Monzo, a London-based fintech startup. “Digital payments are clearly the future.” She continued: “In the UK, plastic payment cards are the most popular way to buy things. Only about 30% of transactions use paper notes and coins, The ratio is already at 15% in Sweden, which will become effectively cashless in a few years’ time”. Quartz journalist John Detrixhe appears to agree. He gives several reasons for ‘getting rid’ of cash:

  • When shops switch over to digital money, their workers are less likely to be subject to violent robbery.
  • It can also be faster and cheaper to process than notes and coins.
  • Cash helps to enable the underground economy through tax evasion as well as illicit finance.

But G4S issued a report (April ’18) showing that cash circulation has increased

G4S which transports, process, recycle, securely store and manages cash published the World Cash Report in April 2018.  It surveyed 47 countries covering 75% of the global population and over 90% of the world’s GDP. The findings show that demand for cash continues to rise globally, despite the increase in electronic payment options in recent years; cash in circulation relative to GDP has increased to 9.6% across all continents, up from 8.1% in 2011.

The report highlights the variety of payment habits in different regions. In Europe 80% of point-of-sale transactions are conducted in cash, while in North America, where card payments are most regularly used, cash use still accounts for 31%. In Asia the rise of online purchases does not mean that cash is taken out of the equation, with more than 3 out of every 4 online purchases in a number of countries paid for by cash on delivery.

Access to Cash Review: cash is “an economic necessity” for around 25 million people in Britain

Natalie Ceeney (right), a successful civil servant who is now non-executive chair of Innovate Finance, chaired the independent Access to Cash Review, funded by Link, the UK’s biggest network of cash machines. She said “The issue is that digital does not yet work for everyone.”

The review indicated that physical notes and coins are “an economic necessity” for around 25 million people in Britain, and nearly half of people surveyed said a cashless society would be problematic for them. ATMs and bank branches are under particular pressure in rural communities, where broadband and mobile service is unreliable or unavailable. Next month, the review plans to publish its recommendations on how to deal with declining cash availability.

Nicky Morgan, chair of the UK’s Treasury Committee, said recently, “Whilst cash may no longer be king, it continues to play an important role in the lives of millions. So what we’ve heard today from the PSR should set alarm bells ringing. It’s clear that the whole way that people access their cash via ATMs is starting to fail. With the way that people access their cash seemingly on the precipice of collapsing, the government can’t just bury its head in the sand. . . .”

And what will happen in a cashless society when electronic systems malfunction – as machines do – when the mobile phone cannot get a signal, when cable sheaths fail or when someone accidentally damages a phone cable?

 

 

 

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Inaction over climate change is shameful: Martin Wolf

Martin Wolf, former senior World Bank economist who left after becoming disillusioned with its policies, reminds readers that a goal of the Paris agreement of 2015 was to limit the global average temperature rise to less than 1.5C above pre-industrial levels. He comments:

“Achieving it means drastic reductions in emissions from now. This is very unlikely to happen. That is no longer because it is technically impossible. It is because it is politically painful.

He refers to the latest report from the Intergovernmental Panel on Climate Change on the implications of warming of just 1.5C, making plain the risks the world runs if this limit is ignored and concluding that life will survive, but not life as we know it, continuing:

“We are the shapers of the planet now. This ought to transform how we think. Unfortunately, it has not”.

Wolf believes that the theoretical and empirical arguments for man-made climate change are overwhelming, supporting this and other points made with graphs in his recent Financial Times article. The rise in average temperatures above the pre-industrial average is already about 1C. That shows how hard it will be to keep the final increase below 1.5C, or even 2C. Under the “nationally determined contributions”, he adds, we are in fact on a track towards warming of 3-4C by 2100.

if we are to have a high chance of keeping the ultimate temperature rise to below 1.5C:

  • net global CO2 emissions would need to fall to zero not long after 2040
  • and other sources of climate change — emissions of methane and nitrous oxide, for example — would also need to fall from 2030.

Emissions from industry would need to fall by 75-90 per cent by 2050, relative to 2010. This would need a combination of electrification, hydrogen and product substitution. These options are technically proven, but their deployment on a planetary scale is another matter. Emissions reductions by efficiency improvement will be inadequate.

(Ed) One reservation: many will disagree with Wolf’s assertion that generating energy from bio-based feedstocks is necessary and that agriculture will need to shift to production of energy crops on a huge scale.

He calls for planning changes in urban infrastructure and carbon capture and storage on a large scale, shifting the world on to a different investment and growth path right now and commenting, “This is more technically possible than we used to think. But it is politically highly challenging”.

The natural tendencies are either to do nothing, while insisting there is no problem, or to agree there is a problem, while merely pretending to act. It is not clear which form of obfuscation is worse.

Wolf points out that to preserve our planet requires co-operative effort on a planetary scale – a challenge human beings have historically only met in times of war. Climate change involves huge distributional issues between countries that caused the problem and those that did not, and, not least, between people today, who make the decisions, and people tomorrow, who suffer the results.

He warns that the chances of co-operative action seem near zero in today’s nationalistic world . . . Donald Trump has already repudiated the US pledge – other countries may fail, too:

“It is five minutes to midnight on climate change. We will have to alter our trajectory very quickly but appear to be set on running an irreversible bet on our ability to manage the consequences of a far bigger rise even than 2C, risking a world of runaway — and unmanageable — climate chaos.

“Our progeny will see this as a crime”.

 

 

 

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FT: City of London’s clean air plan is a model for others

The FT’s editorial board highlights actions being taken by the local authority to turn parts of the City of London’s ‘Square Mile’ into a zero-emissions zone by 2022. Details here.

As the FT’s Simon Kuper recently reported, air pollution is said to contribute to more than 9,000 premature deaths in London each year and its harmful nitrogen dioxide levels are nearly as bad as those in Beijing and New Delhi – and much worse than in other developed cities such as New York or Madrid.

Nitrogen dioxide, which inflames lungs and is linked to shorter life expectancy, has become a major problem. The capital missed binding EU limits on air quality that came into force in 2010, largely due to diesel vehicles — which, it later emerged, emitted higher levels of pollutants in the real world than in tests. Congestion, which has pushed average traffic speed down to 8mph, compounds the problem. Add in the City of London’s narrow streets and tall buildings, and two of the capital’s five hotspots for excessive nitrogen levels lie within it.

The mayor of London is making headway

The impact of the City’s plans will be even greater if they bolster commitments by Sadiq Khan, London’s mayor, to prioritise fighting air pollution throughout the capital and force the government to take action across the country.

  • From this year, all new single-decker buses will be zero emission.
  • New taxis must be hybrid or electric.
  • Next year, an ultra-low emission zone will come into force in central London, expanding outwards in 2021.

The borough of Westminster has proposed turning Oxford Street, the UK’s busiest shopping location, into a zero-emissions zone by 2022 and a parliamentary committee has called for a UK-wide ban on new petrol and diesel cars to be brought forward eight years, to 2032.   

The FT reports ‘lessons elsewhere’. Singapore has had an automated electronic road pricing scheme since 1988 and is moving to a satellite-based scheme in 2020 and advocates a move to cycling rates such as those In Amsterdam or Copenhagen.

Take a carrot-and-stick approach? The FT editorial board thinks that governments should both help and oblige people to change their behaviour

It cites Germany’s carrot-and-stick approach. A court ruling this week banned older diesel cars from driving in certain parts of Berlin – after the government had offered car owners generous bonuses for trading in older diesel cars.

The FT believes that The British government has not provided enough fiscal incentives to businesses and individuals who bought diesel vehicles in the mistaken belief that they were greener.

The Centre for London think-tank has proposed offering cash or mobility credits — which can be used to pay for public or shared transport — for scrapping diesel cars, as well as smarter distance-based car charges, and higher vehicle excise duties on the most polluting cars. The FT’s truism:

“Despite efforts to address it in London and other big cities, air pollution will remain dangerously high unless more people change behaviour. The City of London’s bold moves are worthwhile — but need to be happening not in a bubble, but right across the world’s major cities”.

 

 

 

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Can Britain afford to offshore ship building?

Cammell Laird, working to full capacity in 2012

Though Cammell Laird’s Birkenhead shipyard won two contracts this month, worth a total of £619 million, to provide spares, repairs and do maintenance work for the Royal Fleet Auxiliary over10 years, news of plans to axe about 40% of the workforce (290 jobs) by the end of March 2019, was given to union representatives and workers today (11th October).

The Unite union is demanding that Cammell Laird sets out the business case for cuts which will see the loss of vital skills and ‘backdoor casualisation’ of the workforce. It fears that the proposed job losses will undermine the shipyard’s ability to fulfil new contracts.

Unite’s assistant general secretary for shipbuilding, Steve Turner, said: “The loss of jobs at Cammell Laird would see skills gone for a generation and be a further blow to the UK’s shipbuilding industry . . . it is clear that the government must and can do more to support UK shipbuilding jobs. This must include the government stepping in and supporting the retention of skills and jobs while shipyards like Cammell Laird wait for new contracts to come on stream”.

Instead of ‘offshoring’, the government should be handing contracts to build the Royal Navy’s new fleet solid support vessels and a £1.25bn contract for Type 31e frigates (maritime security-focused platforms) to UK shipyards, using British made steel as part of an industrial strategy that supports jobs and communities across our four nations.

https://www.savetheroyalnavy.org/fleet-solid-support-ships-an-important-part-of-the-naval-logistic-chain/

Yesterday it was reported that MPs had urged civil servants (defence officials) to pick a UK company for the £1billion contract for three Fleet Solid Support vessels for the Royal Fleet Auxiliary. Commons Defence Committee chairman and senior Tory MP Julian Lewis feared that foreign firms subsidised by their governments could undercut British rivals.

Penny-wise, pound foolish?

The MoD’s director general for finance told MPs the department’s biggest concern was “what will deliver the greatest value for money”- meaning the lowest bid – a narrow perspective. But as Labour MP John Spellar pointed out, the Treasury would benefit from tax revenue ploughed into public coffers if the work was carried out in the UK  –  “a significant return” – which would be multiplied by work given to British steel and component manufacturers.

Steve Turner said that a failure to have these ships made in Britain would be ‘a gross betrayal of UK ship workers and regional economies, putting at risk manufacturing skills vital to our country’.

 

 

 

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Alert: people working in all sectors should scrutinise the National Planning Policy Framework

In particular, readers who have a degree of interest in environmental issues, whether narrowly focussed or holistic, are advised to scrutinise the government’s NPPF draft consultation document.

Its commitment to reducing emissions was set out in the original NPPF document March 12(page 2, cover right) and in the draft consultation document (page 5):


However, one planner drew attention to an environmentally undesirable omission in the transport sector. Readers with a different focus may well find other causes for concern in this draft document and wish to take part in the consultation.  

Local authorities encouraging the use of freight by water, using suitable canals and rivers, have noted an omission in the revised Mineral Planning Policy. The original para. 143 of the NPPF:

The new Para 200 e):

This is significantly different from the original para 143 which puts more emphasis on sustainable transport modes for minerals.

Local Mineral Planning Authorities in areas such as Leeds and Manchester, who are safeguarding existing wharves and approving new ones, ensuring sustainable modes of bulk transport for minerals, and those involved with the waterway freight industry will recommend that the original wording is reinstated.

 

 

 

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Birmingham Council adopts the government’s austerity agenda: asking the low paid to accept even lower wages

In July, Birmingham City Council reneged on an ACAS-mediated, cabinet-approved agreement between the Unite union and Birmingham’s talented Council Leader, John Clancy, which was to end the seven-week refuse collection dispute.

The well-paid BCC chief executive (right) was seeking to downgrade 106 Grade 3 jobs to a Grade 2, which meant that workers would lose £3,500-5,000 from their already low salaries of around £20,000.

And when BCC reneged on the Unite/Clancy deal, they also issued redundancy notices to the Grade 3 workers. These were later banned in the High Court when Mr Justice Fraser spoke at length about the “extraordinary” and “astonishing” state of affairs at Birmingham City Council with “chaos” between senior personnel. Read more about his reflections here.

Council leader Ian Ward (left) told a BBC reporter: “The cost of the (three month) dispute, yes that’s cost in excess of £6m”.

This ‘new’ version of the original deal (details here), described by union insiders as a ‘total climbdown’, was agreed at a special meeting of the BCC cabinet on Friday.

 ITV reports that yesterday Birmingham bin workers voted to accept the council deal.

So a seven week dispute was allowed to go on for three months, regardless of health and safety implications, losing £6m of ratepayers’ money – and the wrong head rolled.

From ‘Our Birmingham‘,  under another title.

 

 

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Austerity 7: “Governments are balancing budgets on the backs of the poor” (John Grisham)

1. State Pensions

2.6 million women born in the 1950s will ‘lose out’ because of changes to pension law: “while corporations and the richest individuals receive tax breaks”

WASPIs (Women against state pension inequality) protest outside Parliament. Their aim: to achieve fair transitional arrangements for women born in the 1950s, for whom the state pension age is being raised from 60 to 66 by 2020.Photo: WASPI Campaign/Twitter

A Bournville reader draws attention to an article in Welfare Weekly reporting the findings of a new analysis by the Labour Party which reveals that tens of thousands of Theresa May’s constituents will be adversely affected by her decision to bring forward changes to the state pension age. The state pension age for men and women will be equal at 65 at the end of 2018, before rising to 66 in 2020 and then 67 in 2028. This will then rise again to 68 between 2037 and 2039, meaning those born between 1970 and 1978 will be made to wait an extra year before becoming eligible to claim.

Data obtained by Labour from the House of Commons Library finds that nearly 37 million people in total will be affected, including 56,547 people in Theresa May’s constituency of Maidenhead. 61,753 people who are under the age of 47 will be hit by the changes in Chancellor Philip Hammond’s constituency of Runnymede and Weybridge. 59,290 people will also be affected in the Work and Pension Secretary David Gauke’s constituency of South West Hertfordshire.

A BBC video clip showed that an outline given by MP Guy Opperman (right, Work and Pensions) of government measures to assist older people back into work, including apprenticeships and retraining received a mixed reception.

Labour’s Shadow Work and Pensions Secretary, Debbie Abrahams, said: “Thanks to the Tories increasing the state pension age, 36.9m people will be forced to work longer, at the same time that evidence indicates life expectancy has stalled in some places and is reducing in others.” She called on Tory MPs to “explain to the tens of thousands of people in their constituencies why the burden of Tory austerity is being pushed on them, while corporations and the richest individuals receive tax breaks.”

Abrahams added: “Theresa May should answer her 56,547 constituents, and the 36.9m people across Britain, whose hard-earned retirements are being postponed because of her Government.”

Labour is to begin a “national state pension tour” to draw attention to how many people will be affected and voice their opposition to the policy.

 

 

 

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Will the small print exclude some EU citizens living & working in Britain?

An EU citizen working in this country thinks it will.

She emailed a downbeat response to the announcement made by Theresa May to European leaders that no EU citizens living lawfully in Britain when it exits in March 2019 would be asked to leave. She added that EU citizens already in the UK – and those who arrive lawfully during a subsequent “grace period”, expected to be up to two years – will be given the opportunity to build up five years’ worth of residence.

Our reader explained that it’s all in the small print: the way the UK interprets “lawfully” means quite a few in reality won’t qualify.

One category is that of students without “comprehensive” private health care cover (‘comprehensive’ never defined!). Others will be wrong-footed as the number of qualifying years change; those based in the UK who travelled abroad in the course of their work for more than 100 plus days find that year doesn’t count… Our reader adds:

“Those who’ll be unlikely to qualify for May’s offer could also include the retired French widow living off her pension (arrived in the UK as teacher in the 70s), as she’s not ‘economically self-sufficient’ … It is inhumane to leave her (& others in her situation) in limbo (she was interviewed last year after Brexit referendum and I doubt May’s offer has helped her to sleep better!) 😦

Matthew Weaver reports that EU leaders have described the UK’s opening offer to protect EU citizens’ rights as vague and inadequate, suggesting the British government needs to go further. 

Donald Tusk, president of the European council, said the offer was “below our expectations” and would worsen the rights of the EU citizens.

Anne-Laure Donskoy, a founding member of the 3million – which aims to protect the rights of EU citizens living in the UK – agreed, saying “It is like a teaser this statement, it gives you general direction of travel potentially, but there are things in the statement that need to be unpicked.”

Our reader sends a link to an article by another 3million founding member who believes that Theresa May’s ‘outline deal’ falls woefully short of the comprehensive, reciprocal offer by the EU that includes lifetime guarantees of all existing rights for EU citizens in the UK (‘migrants’) and British citizens living in the EU (‘ex-pats’) whose rights are equally at risk.

She adds a link to these right-minded EU proposals which were published early in June: Essential Principles on Citizens’ Rights. They aim to protect the rights of EU27 citizens, UK nationals and their family members who, at the date of entry into force of the Withdrawal Agreement, “enjoyed rights relating to free movement under Union law, as well as rights which are in the process of being obtained and the rights the enjoyment of which will intervene at a later date [for example pension rights]”.

The Guardian reports that the full details of Theresa May’s offer to EU citizens will be published on Monday.

 

 

 

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A new kind of politics would place able loyalists above able opportunists

On the blue leaning Labour List website, Cllr Luke Akehurst refers to ‘entryists’: “We should continue to be intolerant of any sectarian antics from Momentum . . . We must fight to keep Labour as a broad church democratic socialist party with many traditions within it”.

Clive Efford, who leads the 75-plus Tribune group of Labour MPs relaunched last year, was one of several former critics who have heralded Corbyn’s performance in the campaign. He spoke out on the same site, calling for the existing shadow cabinet to be rewarded by keeping their jobs after Corbyn’s health spokesman, Jon Ashworth, urged the leader to “strengthen the squad”.

The shadow team were appointed in the aftermath of the summer “coup” last year, and several of the group, including Barry Gardiner, Angela Rayner, Andrew Gwynne, Emily Thornberry, Ian Lavery, Richard Burgon and Rebecca Long-Bailey proved to be effective shadow ministers. Efford said this work should now be recognised: “Jeremy has got a shadow cabinet that remained loyal and allowed him to perform extremely well during the general election.”

“We questioned whether voters would be prepared to get behind Jeremy at a general election. The opinion polls suggested we were right about that. But it has to be said that Jeremy is a brilliant campaigner and did extraordinarily well. People have had a good look at him and found that they can get behind him. They see him as a credible leader.”

 

 

 

 

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Incinerators 6: FOI reveals the surprising truth about the Javelin Park incinerator contract

News of the long campaign against the proposed Javelin Park incinerator was read by many visitors to this site in 2013 and 2015.

This year, campaigners obtained a copy of the contract, after using freedom of Information rules, and the monitoring officer at Gloucestershire County Council has now been asked to investigate whether the leader and his deputy exaggerated the cost of backing out of a plan to commission a £500m waste incinerator.

A resident of the county was contacted and replied that she had read about the discovery in the Gloucester Citizen, which republished an account from Gloucestershire Live, but neither account may now be found online. A search reveals no mainstream media reference to the subject.

Public Sector Blogs drew on an account by Tim Davies, co-founder of Open Data Services Co-operative, co-director of Practical Participation, affiliate at the Harvard Berkman Center for Internet and Society:

“The claim made to council on 18th Feb 2015 that it could cost £60m – £100m to cancel the contract appears to be based on calculations from officers, and/or Ernst and Young which have not been published by the authority (perhaps another EIR or FOIA request will be needed here…). The Tribunal ruling refers in Paragraph 27 to a document from Ernst and Young presented to Cabinet in November 2015. However campaigners reading the unredacted contract cannot find the substantiation for the cancellation costs being so high before the facility is operational. It appears breakage before the plant is in operation could cost substantially less than the break-points once it is up and running – and possibly even lower than the £30m the Council has subsequently committed from reserves to cover shortfalls in the project”.

Community R4C, a community-led project promoting a circular economy in Gloucestershire, which published local media accounts of the recent discovery here, has now gone to the council’s external auditor, Grant Thornton. With the help of the Environmental Law Foundation, a case has been put together which, it believes, shows the Urbaser Balfour Beatty (UBB) contract is not value-for-money. It has also approached the Competition and Markets Authority, claiming that Gloucestershire’s contract breaks competition law.

A contributor to Private Eye magazine reports that environmental law expert Raymond Purdy, a senior fellow at Oxford University, has complained about the way Gloucestershire council leader Mark Hawthorne and deputy Ray Theodoulou presented financial details to a crucial meeting. As Tim Davies noted above, it was claimed that to opt out of the contract already signed with UBB would potentially cost £100m.

ELF elaborates: “The contract, originally signed in 2013 and then renegotiated in 2015, for the £500 million incinerator was awarded to Urbaser Balfour Beatty although details on pricing and information on termination were only made public following an Information Tribunal ruling in March this year (2017). In light of this information, and after seeking assistance from Counsel through ELF member, Duncan Sinclair of 39 Essex Chambers, R4C lodged a complaint with the CMA on 21st March that the Javelin Park contract breaches the Competition Act 1998. R4C believe that the exclusive contract is anti-competitive and prevents technological innovation, imposing a huge financial burden for years to come. They state that:

  • the price paid by GCC for waste disposal for a minimum amount is 10 times the next tranche, thereby creating ‘de facto’ exclusivity and foreclosing the market for waste treatment (including eliminating incentives to recycle/move higher up the waste hierarchy);
  • there are excessive termination costs thereby enforcing the ‘lock-in’; and
  • the 25-year contract prevents newer, cheaper and more efficient/environmentally friendly alternatives developing to the detriment of consumers in terms of not only price but also their interest in the environment (both local and more broadly).

If the complaint is upheld there would be serious consequences for Gloucestershire County Council and the residents they are elected to represent.