Category Archives: Transport

Bad decisions by government 37 – third runway at Heathrow

 

UK aviation policy is primarily predicated on the requirements of airport operators, major airlines and the Treasury – the needs of passengers come last says Steve Beauchampé in The Birmingham Press. 

The governments long-awaited – and unsurprising – decision to proceed with construction of a third runway at London Heathrow is fundamentally flawed, supported with redundant arguments and highly questionable financial assessments. If the UK had a comprehensive and comprehensible national aviation strategy Heathrow would not be operating at anything like 95% of capacity.

That it does so is the result of a system that essentially forces millions of UK passengers per annum to travel long distances, often in arduous and stressful conditions, to use both Heathrow and London’s two other main airports (Gatwick and Stansted) at great cost both to themselves and the environment. rather than utilising their local airports, many of which are working to a fraction of their capability.

Birmingham International Airport handled 12.9m passengers in 2017 but could cope with around double that number. Meanwhile, Nottingham East Midlands welcomed a paltry 4.88m whilst major population centres such as in the North East, South West, South Wales and along the south coast are all but bereft of decent flight choices. This is not only down to the London-centric approach which blights so many activities in the UK, but the failure of successive governments to challenge and take on the vested interests of London airports and the major airlines.

Two key arguments put forward in favour of a third runway at Heathrow are particularly fallacious

The first is that Heathrow must continue developing as a ‘hub’ airport, competing for passengers not with Birmingham, Manchester or even Gatwick, Stansted and Luton, but with Amsterdam, Frankfurt and Dublin and increasingly Dubai!

So a third (and later probably fourth and fifth) runway at Heathrow is essentially required to allow the airport’s operator Heathrow Airport Holdings to attract passengers who will never leave the airport environs but whose visit is solely to transfer from one aeroplane to another, Great news for HAH, who enjoy increased landing fees as a result, and good news for the Treasury, who collect airport tax each time that a passenger takes a flight.

But it is hardly good news for UK travellers who are not being provided with flights from their local airports to the locations that they want and at a time when they want to fly. Indeed the hub strategy encourages those in the north of England, Northern Island and Scotland to take domestic flights to Heathrow and then transfer planes to reach their ultimate destination.

Yet hub airports may soon be an outdated concept, with technological improvements meaning that modern aeroplanes will be able to fly further (and faster) without the need to refuel (its already possible to fly non-stop from London to Sydney). Point-to-point flying seems more likely to be the way ahead. 

The second argument in favour of Heathrow runway expansion is that many airlines do not want to fly out of the UK’s ‘regional’ airports (with the possible exception of Manchester, which handled 27.7m passengers in 2017) and would be unwilling to give up valuable landing slots at Heathrow.

But this argument is unacceptable. We would not tolerate train operators refusing to serve smaller stations nor bus companies running services only on main routes. To combat this attitude the number of slots available at Heathrow needs to be limited rather than endlessly expanded, whilst the national airport strategy that Conservative MP and anti-Heathrow Runway 3 campaigner Justine Greening called for earlier this week should focus on ways to create an environment which encourages airlines to relocate services outside of London and the South East.

This is particularly apposite given that both Birmingham and Manchester airports will be stops on the HS2 network by 2030. And whilst there is a real risk that limiting slots at Heathrow will result in some airlines pulling routes and services out of the UK altogether, the country is a large enough aviation market to offer sufficient paths to profit that most such withdrawals will likely be less than crucial and, in some cases, perhaps temporary.

In agreeing to support Heathrow’s third runway the government have committed to paying £2.6bn in compensation to those communities near to the airport that will be destroyed or significantly affected by the project. To which can be added an estimated £10bn in public funding for the new infrastructure and environmental measures required to support the expansion.

How much better to invest this money throughout the UK to create a national airport infrastructure to meet the needs of the travelling public, and one befitting the worlds fifth largest economy.

 

 

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New Fleet Solid Support ships: cash-strapped MoD should look at the total cost-benefit of building in Britain

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Jeremy Corbyn is in Glasgow today, where – reversing New Labour policy – he will call for Navy shipbuilding contracts to stay in the UK.

The contract could lead to over 6,500 jobs in the UK, 1,800 of those in shipyards: “Our proposal would both sustain existing shipbuilding and supply chain jobs and create new ones – right here in Scotland and also across the UK.”

The MOD, which is alleged to have ‘lost controls of costs’, hopes for a cheaper option. Its spokesman added: “We are launching a competition for three new Fleet Solid Support ships this year and strongly encourage British yards to take part”.

“Until the new Fleet Solid Support Ships (FSS) arrive, these hardy veterans must stagger on into the mid-2020s” 

STRN points out that the need for these important ships was first stated in 2015 – and it is feared that the first ship will probably not be ready for sea until around 2025.

The three currently supporting ships supply ammunition, food and spares are “antiques built in the late 1970s and saw action in the Falklands War”. Corbyn warns:

“By refusing to help our industry thrive, the Conservatives are continuing their historic trend of hollowing out and closing down British industry. Over the course of the 1980s under the Tories, 75,000 jobs were lost in UK shipyards, leaving just 32,000 remaining.

“Our shipyards used to produce half of all new ships worldwide. Our current market share is now less than half a per cent. The Tories seem hell-bent on accelerating and deepening this industrial decline.”

SNP MSP for Glasgow Anniesland, Bill Kidd, is sceptical, saying: “Workers on the Clyde and people across Scotland haven’t forgotten Labour’s betrayal of the industry in 2014.

 

 

 

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Broken Britain 16: HMRC refuses to investigate money-laundering and tax fraud charges by largest Conservative donor

Three classes of British looting: which is the most culpable?

Professor Prem Sikka, Professor of Accounting at University of Sheffield and Emeritus Professor of Accounting at University of Essex, draws attention to the case of the UK telecoms giant Lycamobile, the biggest donor to the Conservative Party, which has accepted £2.2m in donations since 2011.

Her Majesty’s Revenue and Customs (HMRC) has refused to assist the French authorities and raid Lycamobile’s UK premises in order to investigate suspected money laundering and tax fraud.

Economia, the publication for members of the Institute of Chartered Accountants in England and Wales (ICAEW) which covers news and analysis on the essential issues in business, finance and accountancy, reports:

Following an initial denial (left, Financial Times), Economia confirmed that in an official response to the French government dated 30 March 2017,  a HMRC official noted that Lycamobile is “a large multinational company” with “vast assets at their disposal” and would be “extremely unlikely to agree to having their premises searched”, said the report.

The letter from HMRC to the French government added, “It is of note that they are the biggest corporate donor to the Conservative party led by Prime Minister Theresa May and donated 1.25m Euros to the Prince Charles Trust in 2012”.

This is an ongoing saga: in 2016 Economia noted: “The Tories have come under fire for continuing to accept donations of more than £870,000 from Lycamobile since December, while it was being investigated for tax fraud and money laundering”.

In 2016 In May it emerged that KPMG’s audit of Lycamobile was limited due to the complex nature of the company’s accounts. Later, KPMG resigned saying it was unable to obtain “all the information and explanations from the company that we consider necessary for the purpose of our audit”.

HMRC: “has become a state within a state”.

Prem Sikka (right) continues, “The House of Commons Treasury Committee is demanding answers to the Lycamobile episode – but HMRC is unlikely to prove amenable”.

In recent years, the Public Accounts Committee has conducted hearings into tax avoidance by giant global corporations such as Microsoft, Amazon, Google, Starbucks, Shire and others. The hearings have not been followed by HMRC test cases.

The Public Accounts Committee has also held hearings into the role of the large accountancy firms in designing and marketing avoidance schemes and exposed their predatory culture. In a telling rebuke to PricewaterhouseCoopers, the Committee chair said: “You are offering schemes to your clients—knowingly marketing these schemes—where you have judged there is a 75% risk of it then being deemed unlawful. That is a shocking finding for me to be told by one of your tax officials.”

Despite the above and numerous court judgments declaring the tax avoidance schemes marketed by accountancy firms to be unlawful, not a single firm has been investigated, fined or prosecuted.

There are real concerns that HMRC is too sympathetic to large companies and wealthy elites.

A major reason for that is the ‘revolving door’, the colonisation of HMRC by big business and its discourses: its current board members include non-executive directors connected with British Airways, Mondi, Anglo American, Aviva, PricewaterhouseCoopers and Rolls Royce.

After a stint at HMRC many of the non-execs return to big business. Corporate sympathies are therefore not counterbalanced by the presence of ordinary taxpayers or individuals from SMEs and civil society.

Sikka ends: “In such an environment, it is all too easy to turn a Nelsonian eye on corporate abuses and shower concessions on companies and wealthy individuals”. Read more here.

 

Why should we care?

Because tax revenue pays for the services used by all except the richest, the education health, transport and social services, increasingly impoverished by funding cuts imposed by the last two British governments.

The Shadow Chancellor has twice called for more rigorous examination and tightening of processes at HMRC to ensure that corporations and wealthy individuals are free from political corruption and pay fair rates of taxes.

Will the next government elected be for the many, not the few?

 

 

 

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Austerity 5: former Conservative MP deplores the effects of austerity

Matthew Parris writes in the Times, “the cracks are showing in austerity Britain”

We don’t think enough about local government, one of whose jobs it is to mend potholes. When in our own lives our nearside front tyre is shredded, the pothole, Parris believes, represents “a momentary twitching-back of one tiny corner of a great curtain, behind which lie, no, not potholes, but a million anxious human stories, caused in part by cuts in public spending”.

He adds that accidents due to potholes are usually relatively trivial compared with cuts which for others may have meant:

  • the loss of social care in dementia,
  • no Sure Start centre for a child,
  • the closure of a small local hospital
  • or the end of a vital local bus service.

Potholes are a parable for others that matter even more. Unfilled potholes put lives at risk and have become a symbol of the damage done to every walk of life by spending cuts.

All the pressures on those who run government, local and central, are to worry about the short-term. it is usually possible to leave issues like road maintenance, decaying school buildings, rotting prisons, social care for the elderly, Britain’s military preparedness or a cash-strapped health service, to tread water for years or even decades. “They’ll get by,” say fiscal hawks, and in the short-term they’re often right.

  • Nobody’s likely to invade us;
  • the NHS is used to squeezing slightly more out of not enough;
  • cutting pre-school provision is hardly the Slaughter of the Innocents;
  • the elderly won’t all get dementia at once;
  • there’s little public sympathy for prisoners;
  • teachers can place a bucket under the hole in the roof
  • and road users can dodge potholes.

Parris continues: “But beneath the surface problems build up. The old get older, and more numerous. Potholes start breaking cyclists’ necks. Care homes start going under. The Crown Prosecution Service begins to flounder. We run out of social housing. Prisoners riot. And is there really no link between things like pre-schooling, sports and leisure centres and local outreach work, and the discouragement of knife crime?”

“When New Labour was elected in 1997 we Tories groaned as it tipper-trucked money into the NHS, school building and other public services. Thirteen years later when Labour left office the undersupply was monetary, the red ink all too visible”.

Parris asks: “Must we forever oscillate like this?

One answer: Green & Labour Party leaders would meet these needs and avoid red ink by redirecting the money raised by quantitative easing.

 

 

 

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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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Britain, as yet neither mature nor a democracy, appears to need its monarch and its mayors

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The rational case against metro mayors ably set out by Richard Hatcher, George Morran and Steve Beauchampé, has been shattered for the writer by the media-feeding chaotic, emotion-led, vicious, counterproductive squabbling in the Labour & Conservative ranks.

Still, evidently, a tribal people, we appear to need the ‘high-profile leadership’ extolled by Andrew Carter, chief executive of the Centre for Cities , largest funders Gatsby Charitable Foundation (Lord Sainsbury) and  Catapult network, established by Innovate UK, a government agency. (see report cover right)

As yet, the announcements made by the West Midlands metro mayor Andy Street, respected even by most opponents of the post, with a business record seen as a guarantee of efficiency, are provoking little dissension.

Dan Jarvis, who is expected to win the Sheffield election becoming Britain’s seventh metro mayor, intends to continue to sit in the House of Commons to work for a better devolution deal and speak for the whole county. (map, regions in 2017)

His desire to stay in parliament while serving as a mayor is thought, by the author of FT View to reflect a recognition that the real authority and power of these positions is limited:

  • The six mayors have no say on how taxes are raised and spent.
  • Outside Greater Manchester, the mayors have little control over health policy.
  • Major spending decisions on transport policy are still taken by central government.

Days after taking office in Greater Manchester, Andy Burnham’s announcement of a new fund to tackle the region’s homelessness problem was backed by ‘a chunk’ of his own mayoral salary.

Andrew Carter points out that England’s mayors are highly constrained in their control over local tax revenue and how it is spent, compared with their counterparts in other countries.

FT View describes this extra layer of government as yet merely creating cheerleaders, adding:

“Voices alone will not be enough to shift economic and political power to the regions. England’s mayors need more control. If the government is serious about devolution, the mayors need the powers to match that ambition”.

 

Could well-endowed, unsuborned metro mayors out-perform successive corporate-bound national governments?

 

 

 

 

 

Broken Britain 11: economic apartheid

In last week’s Prime Minister’s Question Time there was a fiery intervention by MP Dennis Skinner who told Theresa May about research showing that the High Speed 2 rail line was going out of its way to stop disruption to “leafy suburbs of the south”:

“[In] the leafy suburbs of the south, the first 140 miles, 30% of it has been dedicated to tunnelling to avoid knocking houses down.

“Yet in the north we are now told that the percentage is only 2% for the whole of the north. “And why? Because HS2 says it’s too costly, knock the houses down.

“Will she arrange for a meeting with people from my area in order to avoid another 30 houses being knocked down in Newtown part of Bolsover.

“Isn’t it high time that this government stopped treating our people like second class citizens?”

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Theresa May replied by extolling her government’s service to these second class citizens citing resounding names Northern Powerhouse and Midlands Engines; the reality?

The north struggles to attract high-calibre teachers . . . Its secondary schools have, on average, funding of £1,300 less per pupil than those in London. In April this year the FT reported research findings that schools with the poorest children face much greater cuts per pupil than those with the most affluent children under the government’s proposed funding formula. (Brian Groom FT)

Knowsley and Liverpool are two of the most deprived areas of the country: council spend per head in these areas has been reduced by £400 and £390 respectively. In Wokingham and Elmbridge, two of the wealthiest parts of the country, the corresponding totals are £2.29 and £8.14.

A scheme to compensate councils for the council tax freeze, for example, is calculated on the value of properties in the area, meaning that the higher the value of local homes, the larger the relief package: Surrey gets a vastly bigger pay-off than Teesside. (Tom Crewe, LRB essay)

The local authorities with the highest levels of deprivation and more reliant on central government grants, were relatively worse off. Cuts to the poorest metropolitan districts averaged 28% compared with more affluent authorities (2010-2015). National reviews painted a stark picture of closures and restrictions to services. (Steve Schofield, Conservative austerity and the future of local government)  

 

Time for change!

 

 

 

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Follow India’s lead: increase waterway freight, reduce emissions and accidents

As Anil Sasi (Indian Express) notes: “Inland waterways are a far more efficient mode of transportation than either road or rail, considering that just a single mid-sized barge has the dry-cargo capacity equivalent to 50 trucks or over 10 railcars. As a consequence, transportation of cargo over inland waterways offers the advantage of both lowering carbon dioxide emissions and curbing the rate of road accidents, where India has the dubious distinction of being among the worst in the world”. 

The Indian government passed The National Waterways Bill in March. The Statement of Objects and Reasons of the Bill states that while inland waterways are recognised as a fuel efficient, cost effective and environment friendly mode of transport, it has received far less investment than roads and railways. Large rivers and canals across the country have been designated as national waterways, to be developed to enable more movement of goods and passengers.

Britain’s Commercial Boat Operators’ Association (CBOA) agrees with its statement recommending the carriage of bulk goods on waterways. Goods in India travel by congested road and rail networks, which increases the costs of trade logistics by as much as 18% of the country’s GDP.  The government statement continues: “Although it is cheaper, more reliable and less polluting than transporting them by road or rail, India has yet to develop this cheaper and greener mode of transportation”. (Read on here: CHS-Sachetan)

In April the World Bank announced a $375 million loan to help the Inland Waterways Authority of India to put in place the  infrastructure and navigation services needed to develop National Waterway 1 as an efficient ‘logistics artery’ for northern India. The loan will enable the design and development of a new fleet of low-draft barges capable of carrying up to 2000 tonnes of cargo in these shallower depths.

Section 3 of its 322 page 2016 report: Consolidated Environmental Impact Assessment Report of National Waterways includes an assessment of inland waterway transport’s impact on climate change, concluding that this is the most efficient and environmental friendly mode of transportation, involving least CO2 generation when compared with rail & road. An estimate of the CO2 emissions from different modes of transportation for the same quantity of cargo for a similar distance is that CO2 would be reduced and a net saving of 4.54 million tonnes realised over a period of 30 years (till 2045).

A gradual expansion of waterway freight transport would reduce transport costs, road accidents and urban air pollution.

In both countries manufacturers, the construction industry and agricultural producers would be enabled to use waterway transport to reach markets at home and abroad.

 

 

 

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Austerity 3: cuts on school transport for disabled children

The 5 live Investigates radio programme gave the Department for Education evidence from a survey of 2,500 parents gathered by the charity Contact, formerly Contact a Family.

The Education Secretary Justine Greening has now ordered a major review of council policies about school transport provision for disabled children. In particular she has received concerns that some parents were receiving misleading advice.

Councils are being forced to make hard choices in the face of ‘sustained financial challenges’. As the Economist reports since 2010 the budget deficit has been reduced from 10% to 4% of GDP; by 2020 it is forecast to be almost eliminated: “To achieve this, the government has slashed spending. Hardest hit has been the Department for Communities and Local Government, which provides councils with most of their funding”.

Adrian Goldberg, the 5Live presenter, reports that one or both of their parents have had to cut down their hours, or give up work completely, in order to get the children to school.

One example is that of Christine Anderson who had to leave her job to make a 60-mile round trip to school with her 15-year-old son Christopher, who has physical and learning disabilities including spina bifida and hydrocephalus.

Jonathan Carr-West of the Local Government Information Unit, says “it is clear that some councils may soon be unable to meet their statutory duties of caring for the most vulnerable”.

261 complaints about school transport decisions were made to England’s local government ombudsman in 2015-16. The figure is a marked increase, says the ombudsman, Michael King. Only Disability United – outperforming all other media articles – gave a link to his report, All on Board, Navigating School Transport Issues, which recommends that councils should:

  • consult parents and schools on changes to individual pupils’ transport arrangements
  • provide clear and accessible information on eligibility for free transport
  • consider individual pupils’ transport needs “carefully and judiciously”
  • consider wider health and safety issues as well as mobility for special needs pupils

There have been campaigns about cuts to transport for children with disabilities over the years in many areas

Demo organised by Eleanor Lisney, a Coventry campaigner and member of Disabled People Against Cuts (DPAC)

The Coventry Telegraph, reporting on these cuts, pointed out that local authorities are required to provide travel assistance for all children who cannot reasonably be expected to walk to school because of their mobility problems or because of associated health and safety issues related to their special educational needs or disability.

 

 

 

 

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Government alarmingly postpones action on climate change

Paul Simons adds to many ‘wakeup calls’ – writing about high temperatures, drought and wildfires.

On Thursday Spain broke the record for its highest temperature with 47.3C (117.1F) at Montoro, near Cordoba in the south of the country.

May and June were also phenomenally hot across Portugal, Italy, the Balkans, Greece and Turkey.

Heat and drought have helped to fuel wildfires in Spain and Italy, and wildfires near the seaside resort of Calampiso in Sicily forced the evacuation by boat of about 700 tourists on Wednesday night. In Greece the heatwave led the culture ministry to close archaeological sites around the country, including the Acropolis in Athens.

Together with a long-running drought, the heat has ravaged much of southern Spain, leading to a devastated wheat and barley harvest. If the arid conditions continue, there are also fears for the olive, walnut, almond and grape harvests and the wellbeing of livestock. Rainfall has been desperately low this year, but the country has been suffering from a lack of rain for five years.

Drought threatens to reduce cereal production in Italy and parts of Spain to its lowest level in at least 20 years, and hit other regional crops. Castile and Leon, the largest cereal growing region in Spain, has been particularly badly affected, with crop losses estimated at around 60 to 70%. While the EU is collectively a major wheat exporter, Spain and Italy both rely on imports from countries including France, Britain and Ukraine.

Deadly heatwaves for much of South Asia – yet many of those living there will have contributed little to climate change

The Guardian adds to the news from Europe: India recorded its hottest ever day in 2016 when the temperature in the city of Phalodi, Rajasthan, hit 51C. Another  study led by Prof Elfatih Eltahir, at Massachusetts Institute of Technology in the US, linked the impact of climate change to the suicides of nearly 60,000 Indian farmers.

The analysis, published in the journal PNAS, assesses the impact of climate change on the deadly combination of heat and humidity, measured as the “wet bulb temperature” (WBT). Once this reaches 35C, the human body cannot cool itself by sweating and even fit people sitting in the shade will die within six hours.

Prof Chris Huntingford, at the UK Centre for Ecology and Hydrology, said: “If given just one word to describe climate change, then ‘unfairness’ would be a good candidate. Raised levels of carbon dioxide in the atmosphere are expected to cause deadly heatwaves for much of South Asia. Yet many of those living there will have contributed little to climate change.”

Guardian journalists comment sarcastically, “But fear not: by 2040, no new diesel or petrol vehicles will be sold in the UK

This, apparently, is the appropriate timetable for responding to what a parliamentary committee calls a “public health emergency”. A child born today will be 23 by the time this policy matures – by then the damage to the development of her lungs and brain will have been done”.

Cold comfort

According to Professor Eltahir’s study, if emissions are reduced roughly in line with the global Paris climate change agreement there would be no 35C WBT heatwaves and the population affected by the 31C WBT events would fall from 75% to 55%. About 15% are exposed today.

A National Geographic article says most people agree that to curb global warming a variety of measures need to be taken. On a personal level, driving and flying less, recycling, and conservation reduces a person’s “carbon footprint”—the amount of carbon dioxide a person is responsible for putting into the atmosphere.

At present, lorries shifting identical goods in opposite directions pass each other on 2,000-mile journeys. Competing parcel companies ply the same routes, in largely empty vans – a theme explored by MP Caroline Lucas and Colin Hines in 2003 – the Great Trade Swap.

It describes airports as deadly too – yet government and opposition alike are ‘apparently hell-bent’ on expanding Heathrow, exploring airport expansion projects elsewhere and seeking post-Brexit trade deals with distant countries.

To reduce the risk of ever more extreme weather, we must reduce the amount of fossil fuel we are burning – and the measures taken will have other desirable consequences as the following cartoon shows:

Parliament must listen to its Committee on Climate Change – chairman John Gummer. As the East Anglian Times reported in June, its annual progress report calls for “urgent” plans to meet legal targets for carbon cuts by 2032 as greenhouse gases from transport and buildings continue to rise.

The committee advocates action to bridge the gap between existing policies and what is needed to achieve required emissions reductions by the mid-2020s – boosting electric vehicles and cutting greenhouse gas emissions from the heating of homes to help to meet UK climate targets.

 

 

 

 

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