I wrote to George Osborne before Christmas about him misleading the House over the Thameslink contract. This is my my response to his reply calling him to ensure the Government upholds the law on this issue.
Dear George
Thank you for your letter dated 14 December 2011.
I am disappointed, however, that your response contains numerous inaccuracies. I can only presume that you have been poorly briefed on this matter as I am sure you would not deliberately ignore the facts to score cheap party political points.
You refer to Lord Falconer’s comments that it was impossible for Bombardier to compete with Siemens. But when the Department for Transport, under the previous Labour administration, compiled the original tender document, it did so on behalf of the train company. As such, it would have been inappropriate to incorporate social benefits to the people of Derby and beyond.
Indeed, the notice initiating this process, published in the Official Journal of the European Union, clearly stated the procurement exercise was one being undertaken by Government on behalf of train operating companies. This view was reinforced by the Department for Transport’s written evidence to the Transport Select Committee. Presumably, as this was not started as a Government contract, the procurement exercise was undertaken in accordance with the procurement rules comprised within The Utilities Contracts Regulations 2006.
However, there was a significant modification to the contract, after the OJEU notice was published, converting it from an operator to a Government contract. You will appreciate the significance of this absolutely fundamental alteration. I was therefore delighted that you acknowledged in your letter that this is indeed a Government contract. You will understand that a Government contract could have taken into account the contract’s social effect on Derby and further afield.
This change to the contract should have led to the procurement exercise being re-advertised on the basis of it being a Government contract. Taking it forward using the competitive dialogue procedure of The Public Contracts Regulations 2006 could have resulted in an entirely different outcome. Notably, reasons would have had to be found for retaining Siemens in the procurement exercise, rather than for excluding it.
I know with certainty that this major flaw has been brought to the attention of the Prime Minister, the last Secretary of State for Transport, and the Business Secretary. It has been raised time and again by constituents and MPs representing the Derby area. In addition, questions have been put to the European Commission by members of the European Parliament.
You will also be aware that the Business Secretary has already accepted that the tender evaluation criterion was structured in such a way that the outcome was inevitable.
Yet your Government has repeatedly tried to transfer blame for this fiasco to the previous administration. However, the nineteen page document that resulted in Siemens being nominated as preferred bidder was first issued by the Department for Transport in November 2010. That was a full six months after the last General Election.
You go on to point the finger at the last Labour Government for the delays in this tendering process. But your account appears to have conveniently forgotten that the delays were in fact substantially caused by the effects of the rail privatisation undertaken by the last Conservative Government.
Your assertions about delays are therefore misleading and disingenuous. I struggle to see the logic behind your claim that retendering would put the whole project back by at least another two years. The Cabinet Office Minister has advised Government buyers that procurement exercises should be completed in a maximum of 120 days. If other organisations can procure trains in a few months, why should your Government take a minimum of two years? Just look how quickly the recently announced Southern Trains order for ‘Electrostars’ from Bombardier has moved forward. According to Justine Greening, her department played a crucial role in its rapid completion. So if the DfT can move quickly on new rolling stock for Southern Trains, why should Thameslink take significantly longer?
In your penultimate paragraph you state that planned reforms will in future give suppliers the confidence that they will be able to compete on a level playing field. Can I take this to be an undertaking that, despite what has been reported, you will ensure that never again will the procurement of new trains be based on either Government PFIs or other similar forms of bundled finance. As you will we aware, inferior credit ratings disadvantage British based suppliers against some of their competitors with manufacturing plants on mainland Europe?
In conclusion, it is apparent that this Government contract has not been undertaken in accordance with English Law and the Government is under an obligation to comply with the law. I trust you will therefore urge the Transport Secretary to terminate the process using the powers vested in her by the invitation to tender and start afresh.
Tuesday, 31 January 2012
Thursday, 26 January 2012
GDP DOWN AND WORSE STILL TO COME FOR CONSTRUCTION SECTOR
This week’s GDP figures, published by ONS, show that the UK economy has fallen by 0.2per cent in the final quarter of 2011. This follows growth of just 0.6 per cent in the previous two quarters.
The main contributors to this fall were the manufacturing and construction sectors, which fell 0.9 per cent and 0.5 per cent respectively.
Commenting on these figures, Noble Francis, Economics Director at the Construction Products Association, said: “The GDP figures show that the final quarter of last year was extremely difficult for the economy, in which both construction and manufacturing had a significant effect.
“Unfortunately the prospects looking forward are even worse, as construction is expected to fall a further 5.2 per cent during 2012.”
This will inevitably exacerbate the problems in an industry that has already lost 300,000 jobs, and will severely hinder growth for the economy as a whole. The public sector cuts are having a particularly damaging impact on construction.
Noble Francis added: “Undoubtedly the problems in the euro zone have increased uncertainty in the private sector making investors highly risk averse to investment.
“However, this does not tell the whole story as capital investment from the public sector, which accounts for more than one-third of total construction activity, will have fallen 30% by the end of 2013.
“As construction has been highlighted by government as essential for recovery, the decline is severely harming prospects for the sector as well as constraining overall economic growth.”
The main contributors to this fall were the manufacturing and construction sectors, which fell 0.9 per cent and 0.5 per cent respectively.
Commenting on these figures, Noble Francis, Economics Director at the Construction Products Association, said: “The GDP figures show that the final quarter of last year was extremely difficult for the economy, in which both construction and manufacturing had a significant effect.
“Unfortunately the prospects looking forward are even worse, as construction is expected to fall a further 5.2 per cent during 2012.”
This will inevitably exacerbate the problems in an industry that has already lost 300,000 jobs, and will severely hinder growth for the economy as a whole. The public sector cuts are having a particularly damaging impact on construction.
Noble Francis added: “Undoubtedly the problems in the euro zone have increased uncertainty in the private sector making investors highly risk averse to investment.
“However, this does not tell the whole story as capital investment from the public sector, which accounts for more than one-third of total construction activity, will have fallen 30% by the end of 2013.
“As construction has been highlighted by government as essential for recovery, the decline is severely harming prospects for the sector as well as constraining overall economic growth.”
CAMERON GETS HIS FACTS WRONG AT PMQs - AGAIN!
The Prime Minister got his facts badly wrong at PMQs on Wednesday prompting Ed Miliband to write to Cameron asking him to correct the record.
This is the text of Ed's letter
Dear Prime Minister
I wanted to write following this week’s Prime Minister’s Questions to draw your attention to some inaccurate claims you made today.
In an answer to me, you said that “There are more people in work today than there were at the time of the last election”. In fact, the most recent employment figures from the Office for National Statistics show that total employment between May-July 2010 and September-November 2011 fell by 26,000.
In an answer to Lindsay Roy MP, you said that the Merlin agreement “actually led to an increase in bank lending last year”. In fact, the latest Trends in Lending report from the Bank of England, published last Friday, said that “the stock of lending to SMEs contracted between end-April and end-November 2011”.
In an answer to Paul Maynard MP, you spoke of “the real shame… that there are so many millions of children who live in households where nobody works and indeed that number doubled under the previous government”. In fact, according to the Office for National Statistics, the number of children living in workless households fell by 372,000 between April-June 1997 and April-June 2010.
In an answer to Rt Hon Anne McGuire MP, who said that your Government was planning to cut benefits to disabled children, you said that “The Hon Lady is wrong”. In fact, according to page 28 of the Department for Work and Pensions’ own impact assessment on the introduction of universal credit, your policy of mirroring for disabled children the current adult eligibility for Disability Living Allowance means that the rate paid to those disabled children who do not qualify for the highest rate of the DLA care component "would be less than now (£26.75 instead of £53.84)".
I am sure that you will want to take this opportunity to correct the record.
Yours sincerely,
Ed Miliband
This is the text of Ed's letter
Dear Prime Minister
I wanted to write following this week’s Prime Minister’s Questions to draw your attention to some inaccurate claims you made today.
In an answer to me, you said that “There are more people in work today than there were at the time of the last election”. In fact, the most recent employment figures from the Office for National Statistics show that total employment between May-July 2010 and September-November 2011 fell by 26,000.
In an answer to Lindsay Roy MP, you said that the Merlin agreement “actually led to an increase in bank lending last year”. In fact, the latest Trends in Lending report from the Bank of England, published last Friday, said that “the stock of lending to SMEs contracted between end-April and end-November 2011”.
In an answer to Paul Maynard MP, you spoke of “the real shame… that there are so many millions of children who live in households where nobody works and indeed that number doubled under the previous government”. In fact, according to the Office for National Statistics, the number of children living in workless households fell by 372,000 between April-June 1997 and April-June 2010.
In an answer to Rt Hon Anne McGuire MP, who said that your Government was planning to cut benefits to disabled children, you said that “The Hon Lady is wrong”. In fact, according to page 28 of the Department for Work and Pensions’ own impact assessment on the introduction of universal credit, your policy of mirroring for disabled children the current adult eligibility for Disability Living Allowance means that the rate paid to those disabled children who do not qualify for the highest rate of the DLA care component "would be less than now (£26.75 instead of £53.84)".
I am sure that you will want to take this opportunity to correct the record.
Yours sincerely,
Ed Miliband
Tuesday, 24 January 2012
DISGRACED TORY MPS USE FLAWED RESEARCH TO ATTACK UNION REPS
Disgraced right wing MPs are exposed today as using flawed research to launch an ideological attack on trade union representatives, the Public and Commercial Services union says.
New analysis published by the Trades Union Congress shows that for every £1 spent on having union reps in public sector workplaces, up to £9 is returned in benefits to the wider economy.
This 'facility time' - used by reps to negotiate terms and conditions for workers, help ensure workplaces are healthy and safe, and assist staff with training and development - is highly-valued by employers.
The TUC report also shows failings in figures relied on by a group calling itself the Trade Union Reform Campaign - headed by disgraced Tory MP Aidan Burley.
Far from costing taxpayers money, the report 'Facility time for union reps: separating fact from fiction' says that reps could be worth between GBP 267 million and GBP 701 million a year to our economy.
Benefits arise through: lower staff turnover; fewer workplace-related injuries and sickness; and fewer employment tribunals.
Mr Burley was sacked from his post as a parliamentary aide to the transport secretary after he reportedly joined friends who were wearing hired SS costumes when attended a Nazi-themed stag party in France.
Liam Fox MP, who is helping to lead the campaign in parliament, was forced to resign in October from his post as defence secretary following revelations that he gave his friend Adam Werritty unprecedented access to official meetings, with serious questions raised about the funding of Mr Werritty's trips.
Union reps work incredibly hard on behalf of their members, often in their own time and for no personal reward other than to help their colleagues and their employer.
It’s pretty clear from their anti trade union setiments that the current crop of Tories are every bit as nasty as their predecessors during Margaret Thatcher’s era.
New analysis published by the Trades Union Congress shows that for every £1 spent on having union reps in public sector workplaces, up to £9 is returned in benefits to the wider economy.
This 'facility time' - used by reps to negotiate terms and conditions for workers, help ensure workplaces are healthy and safe, and assist staff with training and development - is highly-valued by employers.
The TUC report also shows failings in figures relied on by a group calling itself the Trade Union Reform Campaign - headed by disgraced Tory MP Aidan Burley.
Far from costing taxpayers money, the report 'Facility time for union reps: separating fact from fiction' says that reps could be worth between GBP 267 million and GBP 701 million a year to our economy.
Benefits arise through: lower staff turnover; fewer workplace-related injuries and sickness; and fewer employment tribunals.
Mr Burley was sacked from his post as a parliamentary aide to the transport secretary after he reportedly joined friends who were wearing hired SS costumes when attended a Nazi-themed stag party in France.
Liam Fox MP, who is helping to lead the campaign in parliament, was forced to resign in October from his post as defence secretary following revelations that he gave his friend Adam Werritty unprecedented access to official meetings, with serious questions raised about the funding of Mr Werritty's trips.
Union reps work incredibly hard on behalf of their members, often in their own time and for no personal reward other than to help their colleagues and their employer.
It’s pretty clear from their anti trade union setiments that the current crop of Tories are every bit as nasty as their predecessors during Margaret Thatcher’s era.
Monday, 23 January 2012
START-UP VIDEO GAMES DEVELOPER-PUBLISHERS HELD BACK BY LACK OF FINANCE
Former Financial Secretary to the Treasury is calling for the Government to look again at Games Tax Relief
TIGA, the trade association representing the UK games industry, revealed today that while 216 new games companies entered the UK games industry between 2008 and 2011, there were also 197 closures. Limited access to private and public finance is contributing to the high studio mortality figures. The findings are based on a survey conducted by Games Investor Consulting in 2011 of 75 per cent of the UK’s games businesses and published by TIGA in a forthcoming report, Making Games in the UK Today: A Census of the UK Developer and Digital Publishing Sector.
Stephen Timms MP, former Financial Secretary to Treasury, commented: “This timely report is a further indication that in Government we were right to recognise the growth potential of the video games industry and propose a targeted tax relief to help the sector to grow and create hundreds of highly skilled jobs in the UK. I urge the Coalition Government to review Games Tax Relief for the forthcoming Budget.”
Key findings from TIGA’s Report include:
• 216 new games companies entered the UK games industry between 2008 and 2011, but there were also 197 closures.
• The UK’s share of global investment (venture capital and private equity) in the games industry declined from 10 per cent in the mid-2000s to 3.5 per cent.
• 93 per cent of TIGA members said that a new Games Tax Relief would result in more private investment in the UK games industry.
• 63 per cent of TIGA members said that they would seek private investment in new games following the introduction of a new Games Tax Relief.
Dr Richard Wilson, TIGA CEO, said: “Despite an almost record number of start-up studios, the industry’s potential is being held back by limited access to both private and public finance. UK developers are missing out on investment from global publishers and from global venture capital. This is partly because the UK, unlike many of our key competitors, lacks a tax break for games production, which effectively reduces the cost of games development. Access to debt, bonds and equity finance is difficult because of the high levels of uncertainty about consumer demand and the intangible nature of IP in the games sector. In contrast to the film industry which benefits both from a tax credit and from lottery funding, there is negligible public financial support available for video games development.
“Poor access to finance has contributed to a high incidence of business closures in the games sector. The Coalition Government should consider the introduction of a carefully targeted tax break for games production. This would improve the availability of finance for the sector and enable the sector to compete on a level playing field with our overseas competitors. TIGA will bring forward a revised, well-targeted tax break for games production in time for the March 2012 Budget.”
Oli Christie, CEO at Neon Play, said: “UK game developers and digital publishers have the skills, the creativity and the ability to generate new IP. However, our industry is being held back by difficulty accessing finance. A well-targeted tax break for games production would help our industry overcome this challenge and enable us to contribute to the UK’s economic recovery.”
Jason Kingsley, TIGA Chairman and CEO and Creative Director at Rebellion, said: “The fact that many studios struggle to raise finance beyond the prototype phase is particularly worrying and is contributing to the high studio mortality rate. A carefully targeted Games Tax Relief would enhance the availability of finance for studios, improve the UK’s attractiveness to global investors and allow studios to grow and retain experienced development staff.”
TIGA, the trade association representing the UK games industry, revealed today that while 216 new games companies entered the UK games industry between 2008 and 2011, there were also 197 closures. Limited access to private and public finance is contributing to the high studio mortality figures. The findings are based on a survey conducted by Games Investor Consulting in 2011 of 75 per cent of the UK’s games businesses and published by TIGA in a forthcoming report, Making Games in the UK Today: A Census of the UK Developer and Digital Publishing Sector.
Stephen Timms MP, former Financial Secretary to Treasury, commented: “This timely report is a further indication that in Government we were right to recognise the growth potential of the video games industry and propose a targeted tax relief to help the sector to grow and create hundreds of highly skilled jobs in the UK. I urge the Coalition Government to review Games Tax Relief for the forthcoming Budget.”
Key findings from TIGA’s Report include:
• 216 new games companies entered the UK games industry between 2008 and 2011, but there were also 197 closures.
• The UK’s share of global investment (venture capital and private equity) in the games industry declined from 10 per cent in the mid-2000s to 3.5 per cent.
• 93 per cent of TIGA members said that a new Games Tax Relief would result in more private investment in the UK games industry.
• 63 per cent of TIGA members said that they would seek private investment in new games following the introduction of a new Games Tax Relief.
Dr Richard Wilson, TIGA CEO, said: “Despite an almost record number of start-up studios, the industry’s potential is being held back by limited access to both private and public finance. UK developers are missing out on investment from global publishers and from global venture capital. This is partly because the UK, unlike many of our key competitors, lacks a tax break for games production, which effectively reduces the cost of games development. Access to debt, bonds and equity finance is difficult because of the high levels of uncertainty about consumer demand and the intangible nature of IP in the games sector. In contrast to the film industry which benefits both from a tax credit and from lottery funding, there is negligible public financial support available for video games development.
“Poor access to finance has contributed to a high incidence of business closures in the games sector. The Coalition Government should consider the introduction of a carefully targeted tax break for games production. This would improve the availability of finance for the sector and enable the sector to compete on a level playing field with our overseas competitors. TIGA will bring forward a revised, well-targeted tax break for games production in time for the March 2012 Budget.”
Oli Christie, CEO at Neon Play, said: “UK game developers and digital publishers have the skills, the creativity and the ability to generate new IP. However, our industry is being held back by difficulty accessing finance. A well-targeted tax break for games production would help our industry overcome this challenge and enable us to contribute to the UK’s economic recovery.”
Jason Kingsley, TIGA Chairman and CEO and Creative Director at Rebellion, said: “The fact that many studios struggle to raise finance beyond the prototype phase is particularly worrying and is contributing to the high studio mortality rate. A carefully targeted Games Tax Relief would enhance the availability of finance for studios, improve the UK’s attractiveness to global investors and allow studios to grow and retain experienced development staff.”
Saturday, 21 January 2012
UK VIDEO GAMES SECTOR AFFLICTED BY BRAIN DRAIN OF SKILLED STAFF
Derby has a strong heritage of creativity and innovation and was the birthplace of Lara Croft. But Derby’s games industry is not what it once was and the industry is under pressure right across the country. TIGA, the trade association representing the UK games industry, released fresh evidence this week about a brain drain of skilled development staff to overseas jurisdictions. With 41 per cent of the jobs lost by the games development sector between 2009 and 2011 relocating overseas, urgent Government action is needed to arrest this decline in the British games industry.
TIGA has revealed that:
• The UK games industry workforce shrunk by over 10 per cent between 2008 and 2011.
• 41 per cent of the jobs lost between 2009 and 2011 relocated overseas. The majority of these jobs went to Canada, with the next largest territory being the USA.
• Many games businesses reported that the losses were particularly damaging due to the seniority of the positions and the difficulty in replacing like-for-like when competing with packages of salary, seniority and other incentives offered by Canadian companies.
• Former staff of a single major studio (Bizarre Creations) closed by its global publisher owner (Activision) in 2011 indicate that up to 35 per cent of them left the UK, mostly to Canada, and that disproportionately senior staff went overseas versus those that stayed in the UK.The loss of jobs in British games studios has seen the Exchequer receive nearly £100m less direct and indirect tax revenues, while the sector’s contribution to UK GDP has fallen by nearly a quarter of a billion since 2008.
• The findings are based on a survey conducted by Games Investor Consulting of 75 per cent of the UK’s games businesses and published by TIGA in a forthcoming report, Making Games in the UK Today: A Census of the UK Developer and Digital Publishing Sector (January 2012).
Game developers in countries including Canada, France, Singapore and the USA receive tax breaks for games production. Studios in receipt of public support in Canada are receiving support equivalent to 23 per cent of their turnover, giving them a significant competitive advantage. No tax break for games production exists in the UK. Consequently, the UK is missing out on investment and employment in the video games sector.
TIGA advocates the introduction of a well-targeted tax relief for games development, similar to the existing film tax relief. This would effectively reduce the cost of games development in the UK, attract inward investment, stimulate growth in the sector and halt the brain drain.
Dr Richard Wilson, TIGA CEO, said: “The UK video games development and digital publishing sector provides high levels of graduate employment, has a high propensity to export, is at the cutting edge of R&D, and has a world class reputation for IP generation. The video games industry is exactly the kind of sector that the Government should be supporting to help rebalance the UK economy.
“Yet our industry is suffering from a serious brain drain. Our competitors in Canada and elsewhere are able to recruit highly skilled developers from the UK largely because they benefit from tax breaks, which effectively reduce the cost of games development. Tax breaks both stimulate job creation in the games sector and provide games businesses with significant financial resources with which they can deploy to recruit staff.”
TIGA recommends that the Government introduce a carefully targeted tax break for games production to enable the UK games sector to compete on a level playing field and to prevent the brain drain. TIGA conducted a snap survey of 27 of its members about the potential impact of a new Games Tax relief.Of those surveyed, 93 per cent said a tax relief in the UK would slow or halt the brain drain abroad while none felt it would cause the situation to worsen.
Dr Richard Wilson added:
“Without a tax relief, the UK runs the risk of losing its leadership position in video games development and becoming a finishing school for the Canadian games industry: with UK universities educating developers and UK studios then honing their skills before they leave for employment in the Canadian games sector. This is bad for the UK video games sector, bad for the Government and bad for the UK taxpayer. We need a targeted tax relief to halt the brain drain.”
Jason Kingsley, TIGA Chairman and CEO and Creative Director at Rebellion, said: “The UK has a highly skilled development workforce but the brain drain of talented staff overseas is jeopardising this competitive advantage. The evidence from overseas is that the provision of tax relief enables studios to attract and retain high quality staff and to increase employment.
“A carefully targeted Games Tax Relief would enable UK studios to grow and retain experienced development staff, halt the brain drain and stimulate growth in the games development sector. TIGA will bring forward a revised, well-targeted tax break for games production in time for the March 2012 Budget.”
TIGA has revealed that:
• The UK games industry workforce shrunk by over 10 per cent between 2008 and 2011.
• 41 per cent of the jobs lost between 2009 and 2011 relocated overseas. The majority of these jobs went to Canada, with the next largest territory being the USA.
• Many games businesses reported that the losses were particularly damaging due to the seniority of the positions and the difficulty in replacing like-for-like when competing with packages of salary, seniority and other incentives offered by Canadian companies.
• Former staff of a single major studio (Bizarre Creations) closed by its global publisher owner (Activision) in 2011 indicate that up to 35 per cent of them left the UK, mostly to Canada, and that disproportionately senior staff went overseas versus those that stayed in the UK.The loss of jobs in British games studios has seen the Exchequer receive nearly £100m less direct and indirect tax revenues, while the sector’s contribution to UK GDP has fallen by nearly a quarter of a billion since 2008.
• The findings are based on a survey conducted by Games Investor Consulting of 75 per cent of the UK’s games businesses and published by TIGA in a forthcoming report, Making Games in the UK Today: A Census of the UK Developer and Digital Publishing Sector (January 2012).
Game developers in countries including Canada, France, Singapore and the USA receive tax breaks for games production. Studios in receipt of public support in Canada are receiving support equivalent to 23 per cent of their turnover, giving them a significant competitive advantage. No tax break for games production exists in the UK. Consequently, the UK is missing out on investment and employment in the video games sector.
TIGA advocates the introduction of a well-targeted tax relief for games development, similar to the existing film tax relief. This would effectively reduce the cost of games development in the UK, attract inward investment, stimulate growth in the sector and halt the brain drain.
Dr Richard Wilson, TIGA CEO, said: “The UK video games development and digital publishing sector provides high levels of graduate employment, has a high propensity to export, is at the cutting edge of R&D, and has a world class reputation for IP generation. The video games industry is exactly the kind of sector that the Government should be supporting to help rebalance the UK economy.
“Yet our industry is suffering from a serious brain drain. Our competitors in Canada and elsewhere are able to recruit highly skilled developers from the UK largely because they benefit from tax breaks, which effectively reduce the cost of games development. Tax breaks both stimulate job creation in the games sector and provide games businesses with significant financial resources with which they can deploy to recruit staff.”
TIGA recommends that the Government introduce a carefully targeted tax break for games production to enable the UK games sector to compete on a level playing field and to prevent the brain drain. TIGA conducted a snap survey of 27 of its members about the potential impact of a new Games Tax relief.Of those surveyed, 93 per cent said a tax relief in the UK would slow or halt the brain drain abroad while none felt it would cause the situation to worsen.
Dr Richard Wilson added:
“Without a tax relief, the UK runs the risk of losing its leadership position in video games development and becoming a finishing school for the Canadian games industry: with UK universities educating developers and UK studios then honing their skills before they leave for employment in the Canadian games sector. This is bad for the UK video games sector, bad for the Government and bad for the UK taxpayer. We need a targeted tax relief to halt the brain drain.”
Jason Kingsley, TIGA Chairman and CEO and Creative Director at Rebellion, said: “The UK has a highly skilled development workforce but the brain drain of talented staff overseas is jeopardising this competitive advantage. The evidence from overseas is that the provision of tax relief enables studios to attract and retain high quality staff and to increase employment.
“A carefully targeted Games Tax Relief would enable UK studios to grow and retain experienced development staff, halt the brain drain and stimulate growth in the games development sector. TIGA will bring forward a revised, well-targeted tax break for games production in time for the March 2012 Budget.”
ANDREW LANSLEY, HAS LOST TOUCH WITH REALITY
On Thursday the Royal College of Nursing (RCN) moved to oppose the Health and Social Care Bill, arguing that serious concerns have not been addressed during the parliamentary process, listening exercise or political engagement.
The health secretary, Andrew Lansley's response illustrated that he has lost touch with reality. His reaction to the RCN’s move was to say: "They want to have a go at the government … about pay and pensions. The public know we have to do this. It's a purely political operation." (sic).
The RCN, which had not previously opposed the bill as a whole, has taken this decision at this point arguing that the proposals will not deliver on the principles originally set out, and that recent announcements such as the rise in the cap on private patients being treated in NHS hospitals to almost half (49%) make the bill in its entirety a serious threat to the NHS.
Dr Peter Carter, Chief Executive & General Secretary said: “Opposing this bill is not a decision we have taken lightly – we have worked hard on behalf of all our members to influence the decisions that have been taken as the bill has gone through parliament. However, it is now clear that these ‘reforms’ are forging ahead on the ground – without the concerns of nurses and other clinicians being heeded. We have sought a range of assurances, but now feel that the reforms as they stand could have the opposite effect from that which was intended. These root and branch reforms are pressing ahead in tandem with the “Nicholson challenge”, which requires the NHS to save £20 billion in England alone by 2014.
“The RCN has been on record as saying that withdrawing the bill would create confusion and turmoil, however, on the ground, we believe that the turmoil of proceeding with these reforms is now greater than the turmoil of stopping them. The sheer scale of member concerns, which have been building over recent weeks, has led us to conclude that the consequences of the bill may be entirely different from the principles which were originally set out.
“The RCN feels that these concerns are so fundamental that we must now oppose the Health and Social Care Bill. Our Frontline First campaign has shown that cuts are being made, 48,000 in England alone at the last count, and patient care is undoubtedly being put in jeopardy. With this in mind, the RCN proposed an amendment to the bill which would guarantee safe staffing levels, but the government chose not to take this proposal forward. Without these checks and balances, and a commitment to regulate the Healthcare Assistants who are so crucial to the delivery of care, these reforms could damage the very system they were designed to improve.
“Most recently, the announcement that the cap for private income would be 49% has left nurses with real fears that the needs of the market could come ahead of the needs of patients. While we are not opposed to the principle of competition in the NHS, recent developments have shown that the balance between competition and quality has become skewed.”
The RCN has set out a number of areas of concern since July 2010. It believes that concerns remain across all these areas which have led to the change in the RCN position.
• Competition, as opposed to competition and collaboration
• Nurse involvement
• Health inequalities
• National pay, terms and conditions
• Staffing levels
• Private income cap
• Public health
• Workforce planning
• Any qualified provider
Dr Peter Carter added: “While we will continue to raise the concerns of our members around all aspects of this bill, our overall view is that the bill as a whole risks damaging the NHS which our members work hard to build and to support. In combination with the financial pressures all Trusts are facing, and with the rising public health challenge of the coming years, we fear the NHS is now facing a very bleak future.”
The health secretary, Andrew Lansley's response illustrated that he has lost touch with reality. His reaction to the RCN’s move was to say: "They want to have a go at the government … about pay and pensions. The public know we have to do this. It's a purely political operation." (sic).
The RCN, which had not previously opposed the bill as a whole, has taken this decision at this point arguing that the proposals will not deliver on the principles originally set out, and that recent announcements such as the rise in the cap on private patients being treated in NHS hospitals to almost half (49%) make the bill in its entirety a serious threat to the NHS.
Dr Peter Carter, Chief Executive & General Secretary said: “Opposing this bill is not a decision we have taken lightly – we have worked hard on behalf of all our members to influence the decisions that have been taken as the bill has gone through parliament. However, it is now clear that these ‘reforms’ are forging ahead on the ground – without the concerns of nurses and other clinicians being heeded. We have sought a range of assurances, but now feel that the reforms as they stand could have the opposite effect from that which was intended. These root and branch reforms are pressing ahead in tandem with the “Nicholson challenge”, which requires the NHS to save £20 billion in England alone by 2014.
“The RCN has been on record as saying that withdrawing the bill would create confusion and turmoil, however, on the ground, we believe that the turmoil of proceeding with these reforms is now greater than the turmoil of stopping them. The sheer scale of member concerns, which have been building over recent weeks, has led us to conclude that the consequences of the bill may be entirely different from the principles which were originally set out.
“The RCN feels that these concerns are so fundamental that we must now oppose the Health and Social Care Bill. Our Frontline First campaign has shown that cuts are being made, 48,000 in England alone at the last count, and patient care is undoubtedly being put in jeopardy. With this in mind, the RCN proposed an amendment to the bill which would guarantee safe staffing levels, but the government chose not to take this proposal forward. Without these checks and balances, and a commitment to regulate the Healthcare Assistants who are so crucial to the delivery of care, these reforms could damage the very system they were designed to improve.
“Most recently, the announcement that the cap for private income would be 49% has left nurses with real fears that the needs of the market could come ahead of the needs of patients. While we are not opposed to the principle of competition in the NHS, recent developments have shown that the balance between competition and quality has become skewed.”
The RCN has set out a number of areas of concern since July 2010. It believes that concerns remain across all these areas which have led to the change in the RCN position.
• Competition, as opposed to competition and collaboration
• Nurse involvement
• Health inequalities
• National pay, terms and conditions
• Staffing levels
• Private income cap
• Public health
• Workforce planning
• Any qualified provider
Dr Peter Carter added: “While we will continue to raise the concerns of our members around all aspects of this bill, our overall view is that the bill as a whole risks damaging the NHS which our members work hard to build and to support. In combination with the financial pressures all Trusts are facing, and with the rising public health challenge of the coming years, we fear the NHS is now facing a very bleak future.”
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