Jul 012011
 

In a week where the media have been vilifying public sector workers taking strike action to protest at government cuts and pension changes, little coverage has been given to alternative proposals for dealing with the UK’s economic deficit. Patrick V Neville gives his views.

On June 30 we visited two picket lines and attended a meeting of the Public and Commercial Services Union (PCS) to understand their feelings on cuts in public services and to show support for the workers who, against the wishes of the government, organised strike action.
Needless to say, PCS members we spoke to felt unhappy about our nation’s financial situation.

If the full cuts proposed are implemented, one in every five public service jobs would be lost, adding further to the UK’s unemployment rate. Not only could there be fewer jobs, but those who will still have a job available to them face cuts to their pension schemes.

Each worker in government pension schemes could see their contributions doubled or even tripled. To the best of my knowledge, this extra money contributed will initially end up in government funds – but with rising poverty, corporate tax avoidance and evasion and rising prices of consumer goods, will there even be money available for pensions in a few years time? If so, will the cost of living become too expensive for the average person to survive?

Investment in jobs and public services must be in place if we desire a future free from poverty and we could avoid the majority of public services cuts if we take the right course of action.

Corporate tax loopholes are estimated to be costing the tax payer £25 billion a year.

Since moving its headquarters to Switzerland, Boots has reduced its annual tax bill from £100m to £14m, a saving enough to employ 4000 NHS nurses.
http://www.guardian.co.uk/world/2010/dec/11/boots-switzerland-uk

Rather than closing tax loopholes, we are making cuts in the public sector.

Billionaire Sir Philip Green is to advise the government on how best to plan for the cuts, rewarding himself hugely in doing so. Sir Philip is the owner of the Arcadia retail group which includes Topshop, Topman, Burton, BHS, Dorothy Perkins and Miss Selfridge. The company is registered in the name of Sir Philip’s wife Tina, who resides in Monaco and therefore pays no UK income tax. This arrangement has allowed the Greens to save around £300m in UK taxes.
http://www.guardian.co.uk/commentisfree/2010/dec/03/topshop-philip-green-tax-avoidance-protest

Tax evasion and avoidance aside, who have we bailed out?

The Royal Bank of Scotland was rescued with £45 billion of public money. This represents over half of the £81 billion planned in cuts over the next four years. Rather than being allowed to stay open, the bank should have come to terms with closure.

Public spending cuts are more damaging, and minimising them and their effect is more important than encouraging risk-taking bankers to carry on trading.

UK Uncut has leafleted members of the public near the premises of targeted retailers to inform them of tax avoiding measures taken by these retailers.
http://www.ukuncut.org.uk/

I would encourage anyone wishing to preserve a future free from poverty to choose where they shop carefully, to write to politicians and businessmen, to contact journalists to demand coverage of tax avoidance and evasion and simply to consider bringing up these issues with friends and relatives.

Jun 292011
 

 With thanks to Mark Chapman.

Civil and public servants across the UK and from within Aberdeen & Inverness Revenue & Customs Branch, will be joining teachers, head teachers and university lecturers striking against attacks on pensions, jobs and services on 30th June.

The government wants to make public servants work at least:-

  • 8 years longer,
  • pay double or triple more per month
  • not get any benefit from that whatsoever to receive a reduced pension
  • accept real term pay cuts of 10% which is not only affecting the standard of living of public servants, but is already reducing the worth of their future pension entitlement

They say  ‘we are all in this together’ but the bankers are still getting their multi-million pound bonuses for failed banks owned by the taxpayer and the majority of the cabinet are millionaires.

In PCS Aberdeen & Inverness Revenue & Customs Branch we will be striking on 30 June.  There will be picket lines at all branch offices, but in Aberdeen as well as having a picket line, PCS representatives and members will also be joining together for a union breakfast followed by a cross unions meeting in the Aberdeen Trades Union Council Social Club at Adelphi at 12pm.

With inflation at over 5% in the last 2 years, the current pay freeze on Civil Servants pay actually represents a real terms pay cut of at least 10%. Probably more when you take account of rising costs. We have also had an increase in National Insurance contributions and VAT. Aberdeen PCS members’ standards of living have already been severely attacked and eroded and we are not prepared to accept any further cuts when they are totally unnecessary, especially when it is clear that the increased pensions contributions we are being asked to pay are going to pay off the deficit; these increased contributions are not being invested for the benefit of the employees.

There is £120 Billion of unpaid, evaded or avoided Tax to be collected and the UK, the 6th largest economy in the world, holds £850 billion in banking assets from the bailout of the banks – this is more than the national debt.

Mark Chapman, Branch Chair of Aberdeen & Inverness Revenue & Customs Branch of PCS Union said:

“The government admits that money cut from pensions will go straight to the Treasury to help pay off the deficit in what is nothing more than a tax on working in the civil and public sector. The very modest pay and pensions of public servants did not cause the recession, so they should not be blamed, punished or demonised for it.

“Unless ministers abandon their ideological plans to hollow out and attack the public sector in the way they propose, they will face industrial action on a mass scale on 30 June and beyond.”

An AO (Admin Officer), 38 yrs of age added:

“I’ve worked out that I will pay an extra £48.75 per month, have to work 7 years longer than I expected and will lose approximately £19,000 from my pension too.

“I cannot afford this. I already struggle to make it to pay day at the end of the month and this all because this government wants me and people like me to pay for a crisis caused by failed banks and the irresponsible non-investment decisions of those who run those banks.

“This is not equality of sacrifice, is not fair and is criminally unjust. This is on top of an expected pay freeze which is already making life harder for me and is already hitting the future worth of my pension”

There will be picket lines outside most major HMRC buildings and other Civil Service buildings, and services to the public will be disrupted.

Striking Aberdeen PCS Union members will join teachers, other striking workers and representatives from other Unions at various meetings and rallies up and down the country, showing support and solidarity for this action.

PCS, the Public and Commercial Services Union is the largest Civil Service Union. It has over 290,000 members in over 200 departments and agencies throughout the UK. It also represents workers in parts of government transferred to the private sector. PCS Union is the UK’s sixth largest union and is affiliated to the TUC.  For further info See: http://www.pcs.org.uk/