Category Archives: Taxpayers’ money
Today The Times reports that the chancellor is considering slashing the annual tuition fee universities can charge to £7,500, in this autumn’s budget, after young voters swung behind Jeremy Corbyn when he pledged to abolish fees if in government.
In 2008 student loans were removed from protective legislation, by Section 8 of the Sale of Student Loans Act and the Conservative-led coalition increased fees to a maximum of £9,000 a year from the 2012/13 academic year. Fees charged by English universities are now capped at £9,250 but can rise with inflation from this year.
The political/public argument
At the time, minister Alan Johnson said “There is nothing progressive about working people, many of whom will get nowhere near a university, cross-subsidising mainly middle-class students to have a completely free higher education.”
The political/corporate argument
As the FT’s Miranda Green and Alice Hancock report, since the first graduate contribution the UK has stayed high up the international university rankings, with a ‘lucrative higher education export business’, as imposing new buildings spring up on campuses, student flats proliferate and vice chancellors receive average pay packets of £277,834.
Alongside this boom in construction and salaries however, doubts are being raised about the quality of tuition and the content of many degrees now being offered. A comparatively mild one came from Alice Hancock: “In all the discussion over price, there has been little talk of product. I’m happy to make my monthly donation towards my education: it led me to a better job. But I attended a university where I received an average of 15 hours of tuition each week, much of it one-on-one. This is far from commonplace”.
To pay for this expansion, interest rates on student loans are now three percentage points above the retail prices index of inflation; from this autumn they will carry 6.1% interest – more, as Estelle Clarke, Advisory board member of the Intergenerational Foundation points out in the FT: the Student Loans Company ‘hidden in the small print’, charges a monthly compound interest rate of 6.1% . . .
“It ensnares many student/graduate borrowers in a debt trap. . . Less well-off students suffer twice as much with these punitive costs if they have maintenance loans as well as tuition fee loans. For, instead of having loans of roughly £30,000 (tuition fees), their loans will be roughly £60,000 (tuition fees and maintenance loans). Imagine the monthly compounding interest cost on that at 6.1%!”
She adds: “I believe that if more understood what education costs our graduates, monthly compounding rates would have been confined to the dustbin of immoral exploitation. Were student loans regulated, neither punitive compounding interest rates nor inadequate explanations by the SLC would be tolerated”.
Jeremy Corbyn’s £11bn pledge has proved appealing but the FT journalists fear that if he were to act on it in power, a booming, world-class higher education sector would be plunged into financial crisis.
As it is the 99% will pay for government’s corporate-friendly decisions
If, as the Higher Education Policy Institute projects, 71% of students will never repay loans, who will eventually repay the costs of the campus buildings and student flats? The Telegraph quotes Nick Hillman, director of the institute refers to this as a “very substantial” subsidy from future taxpayers to higher education which is “concealed in the system”.
The Institute of Fiscal Studies’ report explains that if graduate earnings are 2 percentage points lower than expected, the long-run government contribution increases by 50%. It calculates that in the long term the government (the taxpayer) will foot the bill for unpaid student loans, which are written off after 30 years: “the expected long-run cost to the taxpayer of HE for the 2017 cohort is £5.9 billion”.
As economist Alison Wolf argues in her 2016 report, many disadvantaged young people would be better served by funding one or two-year high-quality technical courses — or better early years education. But the political corporate alliance would see little profit in doing this.
The corporate world continues its vitriolic but insubstantial attacks on the Labour Party leader whose approach threatens their unreasonably affluent lifestyles. Will increasingly media-sceptical people who seek the common good be affected by them?
In brief, the reference is to arms traders, big pharma, construction giants, energy companies owned by foreign governments, food speculators, the private ill-health industry and a range of polluting interests. Examples of the damaging political-corporate nexus are given here – a few of many recorded on our database:
Arms trade: Steve Beauchampé – “A peacenik may lay down with some unsavoury characters. Better that than selling them weapons”.
The media highlights Corbyn’s handshakes and meetings, but not recent British governments’ collusion in repressive activities, issuing permits to supply weapons to dictators. In the 80s, when lobbying Conservative MP John Taylor about such arms exports, he said to the writer, word for word: “If we don’t do it, someone else will”. Meaning if we don’t help other countries to attack their citizens, others will. How low can we sink!
Reader Theresa drew our attention to an article highlighting the fact that the Specialised Healthcare Alliance (SHCA), a lobbying company working for some of the world’s biggest drugs and medical equipment firms, had written the draft report for NHS England, a government quango. This was when the latest attempt at mass-medication – this time with statins – was in the news.
Most construction entries related to the PFI debacle, but in 2009 it was reported that more than 100 construction companies – including Balfour Beatty, Kier Group and Carillion – had been involved in a price-fixing conspiracy and had to compensate local authority victims who had been excluded from billions of pounds of public works contracts. The Office of Fair Trading imposed £130m of fines on 103 companies. Price-fixing that had left the public and councils to “pick up the tab”.
In Utility Week News, barrister Roger Barnard, former head of regulatory law at EDF Energy, wondered whether any government is able to safeguard the nation’s energy security interests against the potential for political intervention under a commercial guise, whether by Gazprom, OPEC, or a sovereign wealth fund. He added: “Despite what the regulators say, ownership matters”. The Office of Fair Trading was closed before it could update its little publicised 2010 report which recorded that 40% of infrastructure assets in the energy, water, transport, and communication sectors were already owned by foreign investors.
A Lancashire farmer believes that supermarkets – powerful lobbyists and valued party funders – are driving out production of staple British food supplies and compromising our food security. She sees big business seeking to make a fortune from feeding the wealthy in distant foreign countries where the poor and the environment are both exploited. These ‘greedy giants’ are exploiting the poor across the world and putting at risk the livelihoods of hard working British farmers, their families and their communities. She adds that large businesses are gradually asset-stripping everything of value from our communities to make profits which are then invested abroad in places like China and Thailand.
Government resistance to funding long-term out of work illness/disability benefits followed the publication of a monograph by the authors funded by America’s ‘corporate giant’ Unum Provident Insurance which influenced the policy of successive governments. After various freedom of information requests, the DWP published the mortality figures of the claimants who had died in 11 months in 2011 whilst claiming Employment and Support Allowance, with 10,600 people dying in total and 1300 people dying after being removed from the guaranteed monthly benefit, placed into the work related activity group regardless of diagnosis, forced to prepare for work and then died trying. Following the public outrage once the figures were published, the DWP have consistently refused to publish updated death totals. Information touched on in this 2015 article has been incorporated into a ResearchGate report identifying the influence of Unum Provident over successive UK governments since 1992, the influence of a former government Chief Medical Officer and the use of the Work Capability Assessments conducted by the private sector – described as state crime by proxy, justified as welfare reform.
The powerful transport lobby prevents or delays action to address air pollutants such as ground-level ozone and particulates emitted by cars, lorries and rail engines which contribute directly to global warming, linked to climate change. They emit some common air pollutants that have serious effects on human health and the environment. Children in areas exposed to air pollutants commonly suffer from pneumonia and asthma.
Victimised whistleblowers, media collusion, rewards for failure and the revolving door
- A recent whistleblower report records that Dr Raj Mattu is one of very few to be vindicated and compensated after years of suffering. The government does not implement its own allegedly strengthened whistleblower legislation to protect those who make ‘disclosures in the public interest’.
- This media article relates to the mis-reporting of the Obama-Corbyn meeting: there are 57 others on this site.
- Rewards for failure cover individual cases, most recently Lin Homer, and corporate instances: Serco and G4S were bidding for a MoD £400m 10-year deal, though they had been referred to the Serious Fraud Office for overcharging the government on electronic monitoring contracts. Another contender, Capita, according to a leaked report by research company Gartner was two years behind schedule with its MoD online recruitment computer system – yet the government had contracted to pay the company £1bn over 10 years to hire 9,000 soldiers a year for the army.
- The 74th instance of the revolving door related to Andrew Lansley’s move from his position as government health minister to the private health sector. An investigation by the Mail found that one in three civil servants who took up lucrative private sector jobs was working in the Ministry of Defence: Last year 394 civil servants applied to sell their skills to the highest bidder – and 130 were MoD personnel. Paul Gosling describes how the Big Four accountancy firms have PFI ‘under their thumbs’ and gives a detailed list of those passing from government to the accountancy industry and vice versa.
Steve Beauchampé asks if the barrage of criticism apparently aimed at Jeremy Corbyn is more about undermining the politics he stands for which are probably less far to the left than those of many in the current government are to the right. Most political commentators and opponents aren’t worried that Labour will win a General Election under him, but they are alarmed that the movement his leadership has created might one day lead to an electable left winger.
We ARE responsible: in our name the British and American government have destabilised the Middle East
MP George Osborne opened his Commons speech with the truth: “We are deceiving ourselves in this Parliament if we believe we have no responsibility for what has happened in Syria.”
Saddam Hussein was for many years funded and armed by the US and British governments, as a counterweight to Iran whom they feared. Support from the U.S. for Iraq was frequently discussed in open session of the Senate and House of Representatives. On June 9, 1992, Ted Koppel reported on ABC’s Nightline that the “Reagan/Bush administrations permitted—and frequently encouraged—the flow of money, military intelligence, Special Operations training, agricultural credits, dual-use technology, chemicals, and weapons to Iraq” (refs 1-3 here).
There is evidence that Hussein committed atrocities (as did and do other ‘friendly’ rulers in the region) but also that he had developed an economy in which citizens’ basic needs were met and a greater degree of equality of income and opportunity was achieved than anywhere else in the region.
He was encouraged to fight a proxy war with Iran but then went a step too far and felt that he could invade Kuwait with impunity after discussing the matter with US Ambassador Glaspie, who said, according to the tape and transcript of their meeting on July 25, 2000: “We have no opinion on your Arab-Arab conflicts, such as your dispute with Kuwait. Secretary (of State James) Baker has directed me to emphasise the instruction, first given to Iraq in the 1960s, that the Kuwait issue is not associated with America.”
‘We’ – the British and American governments – are responsible for destabilising the Middle East – a process which some see as dating back to the Sykes-Picot boundaries agreement but which, within living memory, starts with the first Iraq War (2 August 1990 – 28 February 1991) mounted to expel the Iraqi army from Kuwait. Subsequently America and its allies wrecked Iraq’s water, sewage and electricity systems by imposing sanctions which prevented imports of the parts needed to repair them. Iraq’s army and police force was dismantled and the country has been beset by bloodshed ever since.
All this – as is rarely pointed out – happened well before 9/11 (2001) which preceded the second Iraq war.in 2003, launched on the pretext of removing non-existent weapons of mass destruction from the country.
Osborne said that the tragedy in Aleppo was due in part to the August 2013 vote, when MPs refused to act against the Assad regime; he is very short-sighted – the tragedy started when USA and UK befriended the Iraqi leader. He recommends intervention – but if we had not intervened in Iraq it might well today have continued to be a relatively egalitarian country in which its citizens’ needs were met and other countries in the region might well have continued to be relatively peaceful.
Intervention has been disastrous: continued civil war in Iraq and Libya – following the West’s intervention – and the US and British deployment of military personnel in the command and control centre responsible for repeated lethal Saudi-led air strikes on Yemen.
Russia? Boris, Andrew: our government continues to aid or participate in killing civilians & suspects in several countries
Foreign secretary Boris Johnson has said that Russia is in danger of becoming a “pariah nation” if it continues to bomb civilian targets in Syria – is he absent -minded or hypocritical?
As Steve Schofield summarises, “Through invasion by ground forces and through air-strikes involving missiles and drones, the US/UK military axis has been responsible for the collapse of societies that has left hundreds of thousands of civilians dead or injured and millions more as refugees.
For years we have assaulted other countries, ruining infrastructure and killing civilians as well as untried suspects; a few examples:
- The FT in 2013 highlighted a report by Amnesty International which concluded that at least 19 civilians in North Waziristan had been killed by just two drone attacks. In July 18 casual labourers, including a 14-year-old boy, were killed near the Afghan border.
- The Bureau of Investigation’s 2014 report: America’s drone war has secretly escalated; it noted that it took President Obama three years to publicly refer to his use of drones.
- In this period Bureau records show drones reportedly killed at least 236 civilians – including 61 children. And according to a leaked CIA record of drone strikes, seen by the McClatchy news agency, the US often did not know who it was killing. In the year after September 2010 at least 265 of up to 482 people killed by drones ‘were “assessed” as Afghan, Pakistani and unknown extremists’.
- Agence France Presse reported from Afghanistan: Afghan officials said that a NATO airstrike Friday killed five civilians and wounded six others. District governor Mohammad Amin said, “At around 3:30 a.m., U.S. forces conducted an airstrike in Aab Josh village of Baraki Barak district. The airstrike hit a residential house killing five and wounding six civilians”. Niaz Mohammad Amiri, Logar province’s acting governor, added, “U.S. forces were chasing down Taliban militants, but mistakenly bombarded a house. As a result, civilians were victims of the attack”.
- Edward Luce in the FT pointed out that there is no treaty governing the use of military drones as for the use of nuclear weapons. We summarised his article with added links to Rand Corporation and Stimson Centre.
- For almost ten years the Central Intelligence Agency has been able to strike targets with impunity. At the moment, Barack Obama orders drone assassinations without having to admit it, or explain himself to anyone. Hundreds of militants have been killed in Pakistan, Yemen, and elsewhere. But hundreds more civilians, perhaps thousands, have also been accidentally killed.
- Josie Ensor’s report from Istanbul says that a US air strike killed nearly 60 civilians, including children, in Syria after the coalition mistook them for Islamic State fighters. Some eight families were hit as they tried to flee in one of the single deadliest strikes on civilians by the alliance since the start of its operations in the war-torn country.
- A Saudi-led coalition air strike hit a hospital operated by Medecins Sans Frontieres in northern Yemen, killing at least 11 people and wounding 19, the aid group said. And who is in the coalition? US and Britain have been deploying their military personnel in the command and control centre responsible for Saudi-led air strikes on Yemen, having access to lists of targets.
- The global charity Medicins Sans Frontieres (MSF) told Reuters news agency that more than 40 civilians, including an eight-year-old in critical condition, were admitted to Abs Hospital after an air strike in the Mustaba district, a region largely controlled by the Iran-allied Houthi militia.
Stuart Richardson, Secretary of the Birmingham branch, offers the sanest contribution from Stop the War Coalition (StWC). StWC is opposing the calls for the implementation of “No-Fly Zones” – after the Libyan disaster – and calls for the bombing of the Assad regime by the RAF and allied air forces. It argues that the only solution is the withdrawal of Russia, US, UK and France leaving the Syrian people to determine their own future.
A concerned reader sends this link to a junior doctor’s blog – summarised:
There’s been enough of heated opinion lately- so let’s just serve cold hard facts.
Hunt’s plan to replace foreign doctors with ‘homegrown’ talent is as laughable as it is xenophobic. We are already in the midst of a workforce crisis:
- applications to medical school dropped 13.5% in the last 5 years,
- increasing numbers of junior doctors are leaving training and the country,
- the existing doctor workforce increasingly cover the work of two or more doctors
- 7 in 10 doctors work in departments where at least one doctor is missing,
- 2/5 of consultant posts are unfilled,
- 96% of doctors work in wards with nurse shortages.
- Health Education England, the body that funds training of so-called ‘homegrown’ talent, has had its budget slashed by £1 billion next year
- Around 25% of the doctor workforce are non-UK, and 10-15% of all NHS staff.
We are well below the European average in hospital beds per person and doctors per person in the NHS as we are – yet Jeremy Hunt plans to push away up to a quarter of the workforce and cut the training budget.
He has no plans to actually address the drop in ‘homegrown’ talent already, a direct repercussion of Hunt’s own morale plummeting war against the profession and yet Theresa May claims that this year was one of the most successful yet for the NHS.
Dr Paul Hobday, leader of the National Health Action Party (NHAP), a political party that was formed by doctors and campaigners in 2012 to fight to protect the NHS, has written to inform David Babbs of 38 Degrees (following his article in the Guardian) about the nature of Incisive Health (IH), whom 38D had commissioned under the impression that they were independent health policy experts.
38D crowdfunded to raise the money to commission Incisive Health to review all publicly available documents on the Sustainability and Transformation Plans but Dr Hobday points out that the co-founder of Incisive Heath is Bill Morgan, who was a special health advisor to Andrew Lansley, the author of the Health and Social Care Act (2012). The company itself is a health lobby group, representing private sector interests to government.
Hobday emphasises that the National Health Action Party wants to see an end to the ‘revolving door’ culture of Westminster and Whitehall – and that Incisive Health is part of that culture:
“Not only does Bill Morgan’s role in the destructive Health and Social Care Act (2012) make his company particularly unsuitable for NHS campaigns, their links don’t end there. In February 2016, Richard Douglas, the Department of Health’s Director General of Finance, joined Incisive Health. Andrew Lansley said he had “hugely valued” Douglas for his “advice and guidance”. Jeremy Hunt was also full of praise. Douglas was in charge of NHS money and policy during both Lansley and Hunt’s reigns, and so had a strong connection to their cuts and privatisation agenda.Incisive Health count Pfizer as one of their clients, so perhaps it is no surprise to find one of their ex-employees, Ben Nunn, in the health team of Owen Smith, given Smith’s own career with Pfizer.
Dr Hobday ends: “We hope that now that you have been appraised of the nature of Incisive Health, 38 Degrees will consider ending its relationship with that company as soon as possible”.
Some of 38D’s own members imply a similar request as a comment here:
“Babbs omits to mention US influence in NHS restructuring, which Jeremy Hunt has acknowledged. Major US consultancies and healthcare corporations like McKinsey and UnitedHealth are heavily involved. But he confirms that 38 Degrees commissioned Incisive Health, lobbyists for Virgin Healthcare and the privatisers’ NHS Partners Network, to produce its crowdfunded report. It’s not surprising it glosses over what the STPs prefigure – the replacement of an NHS once recognised as world leading in cost-effective public healthcare by a privatised system whose providers’ financial interests will have undue sway. As members of 38 Degrees, we think it’s vital that it isn’t seen as an NHS privatisers’ tool”.
Monbiot points out that the Leave campaigners have scarcely mentioned the European Union’s great bonfire of banknotes – not expenditure on quangos or relocating and running the institution but on farm subsidies at €55 billion a year.
Why? The leading Brexiters . . . denounce the transfer of public money from the rich to the poor but are intensely relaxed about the transfer of public money from the poor to the rich
Continuing “The leaders of the Remain campaign are no better”, Mr Monbiot points out that the payments would more accurately be described as land subsidies, as they are paid by the hectare. The poorest farmers who own or lease less than five hectares are excluded: “The more land you own or lease, the more public money you are given, so the richest people in Europe clean up. Oh, not just in Europe. Russian oligarchs, Saudi princes and Wall Street bankers have bought up tracts of European farmland, thus qualifying for the vast sums we shovel into their pockets”
These payments are not related to food production and surprisingly, though they are supposed to act as an incentive for environmental conservation, Monbiot comments that, in Westminster’s version of the European rules, ponds, wide hedges, reed beds, regenerating woodland, thriving salt marsh and trees sufficient to form a canopy are listed as “ineligible features . . . which need to be destroyed if farmers are to claim subsidies for the land on which they grow”. He describes the Common Agricultural Policy as “a €55bn incentive to destroy wildlife habitats and cause floods downstream”, noting that across Romania, farmers are beginning to realise that they can make money simply by mass felling of trees and destruction of wildlife, not for any productive purpose, but just to meet the European rules.
Monbiot ends, “I will vote In on Thursday, as I don’t want to surrender this country to the unmolested control of people prepared to rip up every variety of public spending and public protection except those that serve their own class . . .
Llansantffraed Community Councillor Harry Hayfield’s personal experience has led him to realise that whilst there are differences between what is happening to the NHS in England and the NHS in Wales they share a common problem – underfunding – which leads to cuts in service. Cllr Hayfield says:
I have been a Liberal Democrat for the past twenty four years, however last March a chain of events started that has persuaded me it is time to change.
But what I was not aware of was just how painful the condition was. She was forced into a position where her only option was to have private treatment.
Although the operation was a success she was discharged without being completely tested for after effects. That treatment was to lead to complications which meant she was admitted as a patient to the NHS, after all.
The NHS is obliged to provide emergency treatment but its underfunding is restricting its ability to provide a timely service to the public. It is clear to me that a market for the private sector is being opened up.
“I was elected as a Liberal Democrat community councillor in Ceredigion but worry that, because the money for the NHS comes from Westminster, the Welsh service is in desperate need of help that the Assembly has little control over.
“Having seen that it’s the NHS which picks up the pieces after private healthcare has made its profits, I am concerned that there is no clear political voice spelling out what the real issues are. I have therefore made a personal decision to join the National Health Action Party in order to campaign for people, like my grandmother, to get the care and treatment that they deserve.”
Dr Clive Peedell the NHA party leader (above) said, “We are delighted by Cllr Hayfield’s decision. We do not want to see the NHS in Wales – or in Scotland – following the same route as in England. We were very disappointed to hear Leanne Woods talking before the Welsh Assembly elections about creating lean organisations, bringing in the private sector and tightening up the public sector. This sounds worryingly like the language of someone who has accepted George Osborne’s austerity agenda.
Progressive politics recognises the importance of a clear distinction between public service and private business. Investing in the NHS as a public service brings rewards to the greater economy, it is not a drain. Cllr Hayfield wants to use his change of party to highlight that distinction, to make people realise that better services cannot be provided under a constant regime of cuts and change. The NHS in all the UK’s countries needs stability, public provision and decent funding.
Cllr Hayfield also has a personal reason for wanting to be part of NHA. He grew up in the area served by Dr. Richard Taylor, who co-founded the NHA with me and is now its life president. Dr Taylor was the MP for Wyre Forest, and was elected twice as an independent candidate fighting for an NHS that was fit for purpose. The National Health Action Party welcomes Cllr Hayfield as part of that campaign.”
Cllr Hayfield will be making a public statement, which we support, about his change of party. If there are 10 people from his electoral area who object to his change of party then he will stand down and campaign for his community council place under his new colours. We hope his local electorate will understand and respect his reasons for change and allow him to help the NHA to highlight the danger our NHS faces from underfunding and privatisation.
An audit report about NHS waiting times in Wales: http://www.audit.wales/system/files/publications/nhs_waiting_times_technical_report_english.pdf