Paying the cost of the bank bail out
18 June 2010
by Scunny Independent News
Peeling back the spin from the election campaign, we can already see the impact of the new alliance already starting to affect workers in the region.
So, here's a couple of questions I'd just love to put to Mr' Clegg and Cammeron:
Q - Are essentials services and the weak and the vulnerable being protected like you promised?
Q - Are you safeguarding jobs and investing in the Green economy like you promised?
I don't think they are, and here's why...
Failing to Protect the vulnerable and the needy:
Yesterday they announced several cuts which will have a major impact on a high percentage of people living in Scunthorpe. In addition to cancelling a lot of "projects" around the country based around delivering infrastructure and services under PFI.
I'm not going to go into those cuts, suffice to say that yet again reducing the number of schools being built and cancelling hospital projects affects the poor and working classes. Not only that, it reduces opportunities for work in the building industry and tertiary private sector industries.
Future Jobs Fund: ï¿½290m cut
This is an essential service for towns like Scunthorpe. Scunthorpe needs a "Gap" mechanism for 18-25 year old's to make the transition from Further Education in to adult life. For many teenagers the answer is to move away at 18 to study at University. For many others that opportunity is not there. Removal of this fund in Scunthorpe leaves youth in the town with fewer opportunities and little hope. Having grown up in Scunthorpe in the 1980's I personally find this very worrying.
The Future Jobs Fund is specifically designed to help people who are looking for that first job get help, training and experience. This will impact on the opportunities for some of our best young talent and will drive them away from the town.
Failing to Safeguard Jobs and the Green Economy
The failure to loan ï¿½80M to Sheffield Forge masters is not as was campaigned prior to election under the slogan "safeguarding jobs and investing in the green economy"
And articles in the Murdoch press saying that the loan was a Labour bribe to Sheffield are fabrication.
The loan to Forgemasters was intended to help British Industry re-start the building of British Nuclear Power stations by building a special press. The press was intended to make the high pressure core in which the reactor is cased. There is only one other such press of this size ans specification in the world and this is in Japan. The existing Japanese press can manufacture 10 reactor core's in a year. 11 are on order for Europe, 30 are in planning in the states.
This leaves the UK with no way to build its new power stations, and to reduce its reliance on fossil fuels. To suggest this was a bribe to Sheffield is a lie.
So why the government should give Forge Masters a loan as opposed to the markets? Well this is complicated and it took me some time to get my head around but it goes something like this :
1 Westinghouse are the financial backers Forge Masters.
2 Westinghouse also manufactures nuclear reactors in the States but these are smaller than those being built in the UK by EDF Energy.
3 EDF Energy views Westinghouse as a direct competitor, but EDF can not manufacture Reactor Cores
4 EDF will not use Forge Masters to fulfil the contracts they have for the new nuclear power stations if they were being propped up with a loan from Westinghouse.
5 As a result, reactor cores will be imported from Japan at the expense of British jobs, setting back our nuclear program by 5 years.
So the government became involved, knowing that its going to be several years until the likes of India and Korea can make steel of the quality required to make reactor cores, but plants like Sheffield and Scunthorpe have that ability already.
Failure to provide this loan will prevent the creation of 180 new foundry jobs in the steel industry in Sheffield, and will prevent any work being done on the UK's nuclear program until 2017.
But after all, itsn't this Labour's fault?
Well, we are told they got us in to this mess by over extending the country's financial commitments and underestimating growth....
For fear of sounding conspiratorial, consider what would have happened if we hadn't bailed out the banks?
Labour had the chance for real economic reform when the banks collapsed. Brown should have cut the cancer out when he had the chance. Instead he propped up the same regime the labour movement has opposed for the last 100 years, forcing you and I to pay 22k each to the bankers!
There is an argument that the Billions paid to the banks should instead have been used to form a "national bank" with the intention of loaning directly to struggling businesses and home owners, now thats a big society idea which Mr Cammeron will not be following!
At the end of the day, we had no choice in the matter, it was just agreed on our behalf by our Government fearing a lack of public support if they took radical steps against the banks. So as the banks failed, we the tax payer propped them up.
This leaves the new government with no money to lend to forgemasters to provide not only jobs and employment opportunities for steel workers, but also as a side effect reduces our capacity to build nuclear plants.
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