WAKING UP FOR WALES – PERHAPS NOT?

There may be some signs the Labour in Wales is finally waking from its self induced slumber? First Minister Carwyn Jones claimed that Wales is losing out on jobs and investment because it lacks the same powers over renewable energy enjoyed by Scotland. He has called for control of energy projects up to 100MW to be devolved to Wales.

Now I have no problem with that, it is worth noting that when Plaid Cymru MP Jonathan Edwards (31.01.2012) introduced a bill in Westminster which would have given the Welsh Government powers over energy generation in Wales – something both Labour and the Conservatives included in their respective Welsh general election manifesto's last year - its clear that Labour in Wales’s Westminster representatives were not prepared to play ball.

Mr Edwards argued not unreasonably that the proposal would lead to equality with Scotland and Northern Ireland and that it would mean that we would be better placed to fight fuel poverty with responsibility for our own resources. This entirely reasonable proposal was voted down by Labour MPs, who were more than happy to team up with Conservatives MPs to stop their own party in Wales taking these powers. The proposal was defeated by 239 votes to 44 after Labour and Conservative MPs teamed up against the Bill.

Waking up for Wales perhaps not? Carwyn is on record as saying that he wants decision-making powers for renewable energy developments up to 100MW to be devolved to Wales. So what about any projects that come in over the magic 100MW figure? That according to Carwyn's logic would get decided upon in London by Conservative / Lib Dem Ministers.

Now oddly enough this position may not quite be as ill-thought out as it first appears as it would mean that all of Wales' offshore wind farms, large-scale tidal developments (including any proposed re-badged Severn Barrage) and some of the biomass plant proposals that are floating about would all be excluded. Obviously from a developmental, strategic or practical point of view this is complete nonsense.

Anything for a quiet life and nothing controversial to disturb ones sleep perhaps? And anyway as Labour in Wales representatives in Westminster are totally opposed to any plans to devolve more powers to the National Assembly anyway perhaps this is the ideal solution to the problem as it puts party interest before the national one? Perhaps Carwyn hopes that no one will notice...

WINNERS AND LOSERS

News that one of the 'Big Six' is due to announce a raise in profits at a time when many people are trying to avoid or to live with fuel poverty is never going to go down well with hard presser domestic energy customers. On Thursday Centrica (who own British Gas)are expected to reveal a group operating profit of £2.5 billion pounds, up four percent on 2010.

This unfortunately timed announcement comes against a backdrop of growing fuel poverty, which affects around 5.5 million households in the UK. Fuel poverty is defined as being when a household spends more than ten percent of their disposable income on gas and electricity. Fuel poverty is one of those things that the previous (and former) New Labour Government and the current Con Dem Government have done nothing about.

Nothing has been done or will be done to curb or regulate excessive profits from the energy companies via windfall tax. The talk about customers benefiting from dual fuel bills, etc, is mere distraction. What we have here is a dual political failure that speaks volumes as to how far both the former New Labour Government and the Conservatives (and their Lib Dem coat holders) have gone to drop even the pretence of standing up for the interests of ordinary people in favour of courting the City.

For growing numbers of ordinary people this winter it has come down to a choice of heat or eat, literally choosing between putting food on the table and heating their home. The only winners here are HM Government (with extra tax)and the big six energy companies (with fat profits) all of us as customers are losing hand over fist as the energy cartel ramps up its profits - I have not doubt over coming months that the rest of them perhaps slightly shamefaced (or perhaps not) will ever so quietly announce their profits as well.

TWADDLE...

David Cameron

It would be far easy to dismiss David Cameron's emotive intervention into the Scottish referendum campaign as mere twaddle, designed to bully, frighten and patronise the Scottish people into voting No. It would be easy to dismiss him (and the Westminster Tories and their former New Labour and Lib Dem Unionist little helpers) an irrelevance, especially after the hammering they suffered in the Scottish parliamentary elections in 2011). Personally, although the independence of Scotland is not my direct concern, I would read Cameron's remarks as a warning shot about the pitch the Unionists are going to make.

Cameron's first problem is that he actually believes it, the Union he is waffling on about is long dead, the state is ceasing to serve or deliver for large numbers of people in Wales, as far as I can seen Scotland politics is now fundamentally different as are Scotland priorities and perhaps the Scottish peoples perception of their place in Europe and a wider world. The harsh reality is that behind Cameron's sentimental pitch lies a desperate need for Scotland's oil - the Conservatives wasted millions (if not billions) in the 1980's funding tax cuts for the rich and subsidising the disposal of state assets to their friends in the City.

The pre Thatcher Labour Government did nothing to establish a wealth fund in which to store future anticipated tax revenues from the North Sea (as was the case in Norway and may soon be the case in Scotland). The Conservatives under Thatcher and Major just blew the money looking after their own vested interests, New Labour under Blair and Brown did nothing to change the situation and opportunities were wasted. Given a logical non emotive rational debate, freely reported in the media (and here I include the BBC which no doubt will struggle to hide its bias)then we cold be in for an interesting debate.

Cameron's second problem is that we no longer live in the 17th and 18th centuries. The once perceived political necessities of curbing the divine right of kings, protecting Imperial trade, controlling Ireland and Scotland for historic strategic reasons and conceding the City (and its interests) a free hand in world trade are all history. The Empire is long gone, and any real perception (outside of the pages of the Daily Telegraph, Daily Mail, Express and the Sun and some parts of the Conservative Party and UKIP) that the UK remains a real power and influence in the world died quietly at Suez in 1956.

In Cameron's remarks I do detect a combination of arrogance, ignorance and  a lack of understanding of how the Union has actually worked and a basic understanding of how states actually work. Over time, peoples have combined, been conquered, formed, reformed, participated in and benefited from the existence of states, many of whom have been multi ethnic in nature. During the same period peoples have left failing states, established new states and re-established old states. It's actually part of the Human condition that's what we do.

The Union (as is) is no longer working, it is not delivering basic economic opportunities to people as individuals or as communities across significant parts of Wales (and Scotland). So simply appealing to emotive sentiment and arose tinted vision of what is effectively a long dead vision of the past won't do and just won't work. None of us can live of nostalgia, it won't butter any bread let alone buy any. I think at we are in for an interesting few years as the debate on Scotland's future develops. Personally I think that the Scottish Government should call in international observers for the referendum to ensure that poll is a free and fair vote and any Unionist skulduggery or interference in the democratic process can be avoided.

THE PRICE OF A PINT (PART 2)

Before the last Westminster General election in May 2010 there was much talk (even from the Conservatives) of the need for a Supermarket (and even a Milk) Ombudsman, and a pressing need for votes, since then there has been an effective silence from Westminster. One view from this side of the bridge that may be increasingly shared is that the Supermarkets bought their tame politicos in the Westminster village (well before the Political Parties and Referendum Act 2000 came in) so they can continue to aggressively pursue ever greater shares of the profit with minimal regulation.

At present one litre carton of full-fat, non-organic milk can cost around 65p (01.02.2012 figures). From this a farmer got between 21p and 28p. Production costs come in at around 28p. Over the last ten years two thirds of dairy farmers in England and Wales have gone out of business, that it is estimated works out as one dairy farmer leaving the industry every day. The situation has not got any easier for the farmers or the consumers, especially as we now have to factor in increased transport and production (fuel) costs.

When it comes to a fair deal the current milk prices make grim reading as the shelf price for four pints has remained largely static at around £1.27 for 4 pints since February 2011, and widespread promotions continue to be offered on liquid milk in May with Sainsbury’s and Asda offering 2 x 4 pints for £2.00 and Tesco offering 3 x 4 pints for £3.00. Supermarkets are also widely offering branded and organic milk on promotion – guess who takes the hit for cost cutting – the farmers!

DEFRA's annual data showed that the average UK farmgate price (Defra, Dairyco.net) stood at 29.27ppl at the end of January 2012. The GB average price was 29.38ppl in November 2011, 0.29ppl (1.0%) higher than the previous month and up 3.44ppl (13.3%) compared with November 2010. The Northern Ireland (NI) average for November was up slightly, to 28.76ppl, an increase of 0.20ppl (0.7%) compared with October and 1.07ppl (3.9%) more than the previous year.

What's happening is that we are in the process of losing a critical mass of milk suppliers (something the NFU is only too aware of) and UK farmers are no longer in a position where they can supply the UK's “core milk requirement” which is around some 13 billion litres per year (2010 figures). In 2009 / 2010 year there was a 15 percent drop in UK Milk prices. It is no coincidence that over the last 10 years that Supermarkets’ margins (e.g. the amount of the price they take) on milk have doubled.

Now with a trend for both the processor and retailer to be the same, we have a situation where they take over three quarters of the price of a pint. We have now reached the situation where in a land renowned for Dairy farming and where even though the price of our milk is cheap, we are now become a net importer of milk.

As early as 1914 the UK Government recognised that milk was important for nutrition in children, it helped prevent rickets, and provided vitamins. And so the first government attempts to regulate milks supply and quality came about. Pasteurization came in to kill of certain bacteria. We now have low fat milk, slimmed milk, semi skimmed milk, etc – one thing to think about is that full fat milk is only 4 percent fat, low fat milk being 2 percent (or less) and that milk is about 95 percent water anyway.

The banks (pre Mrs T) fell over themselves throwing credit at our farmers to encourage them to (as per Government and the EU policy) to expand their production. Mrs T’s particular brand of Conservatism was never that interested in farming, they were far more enamoured by the iffy money men in the City, so did nothing to prevent the imposition of Milk quotas (or their consequences) the bad times had begun for our Dairy farmers and oddly enough the banks stopped calling with offers of cheap credit.

As consumers we also have to take a share of the blame because we allowed all of these things to happen, if we want quality milk and dairy products (that are produced in these islands from UK milk) then we will have to change the way we buy, if we do that then out farmers will get a better deal. I think that there is little point in hoping that the Con Dem Government will get its act together, wake up and pull the fat (or the milk) out of the fire...because they won't.

COMMON SENSE

Newport County v Bath City

The decision to move the Newport County v Wrecsam game to the evening of Friday 16th March (and possibly to Rodney Parade) to avoid an unnecessary clash with the Wales v France game on the Saturday shows what can be achieved with the application of a little commons sense and practical thinking. Its just a pity that some common sense cannot be exercised when it comes to arranging fixtures in the RaboDirect Pro12 – why on earth some of the Welsh regions ended up playing fixtures against Scottish sides, when Wales and Scotland were playing in Cardiff escapes me.

This is something that was raised by Rick O'Shea on the alternative commentary of the Glasgow v Scarlets game (which was played in Scotland) last Thursday evening, amongst others. Surely it should not be that difficult to plan it so that teams play corresponding fixtures with either Scottish, Irish or Italian sides in and around the Six Nations. When I buy my Newport County season ticket I get a complete list of fixtures from mid August to April, it is not like that with my Dragon season ticket - all you get a a couple of months of weekend focused date. It does to seem to be possible to produce a full fixture list for a league that contains twelve teams in advance - this has always struck me as odd, especially as this seems to be possible for almost every other sport (on the planet), some of who's leagues contain a great deal more than twelve teams.

A CARD CARRYING SCANDAL

I think that Plaid Cymru AM Bethan Jenkins is absolutely right to ask for assurances from the Labour Welsh Government that no public funds will be used to pay-off AWEMA officials that have been implicated in the charity's financial mismanagement. I for one share the concern that any officials who may be implicated in recent reports into financial mismanagement at AWEMA might receive 'redundancy payments' as the organisation's affairs are wound up. Considering the actual (if not potential) scale of the extent of maladministration highlighted in last week's official report, and previous reports, it would be scandalous for those responsible to receive any further public money. One impression I get it that Labour in Wales quietly hoped that they could ride out the storm and not so secretly hoped that the problem would go away. I just wonder that if the scandal had not involved card carrying members of Labour in Wales would they have acted a great deal earlier and with something like a degree of urgency.

THE PRICE OF A PINT (PART 1)

Having successfully avoided the need for any panic (or precautionary) buying during the brief flurry of snow last week I had no need to rush out and try and buy sixteen pints of UHT milk and half a dozen loaves of bread and had no need to fight someone in the supermarket for the last broken bag of sprouts. That aside, but with milk on my mind I wondered why successive UK Governments have failed to take any meaningful action to help our dairy farmers (or any of our farmers for that matter).

I suspect that this is down to a combination of nice financial inducements from large Supermarkets and a more marked indifference to the agricultural sector. As consumers we also need to take a share of the blame because we allowed all of these things to happen. If we want quality milk and dairy products (actually produced from UK milk or even made in Wales) then we will have to change the way we buy, then our farmers will get a better deal and we will get a quality product.

One consequence of how we buy and how our milk is produced for us and sold to us is that the number of dairy farmers in Wales dropped by a third in five years (up to December 2009) and this despite repeated warnings that more needed to be done to save the industry. Our farmers have consistently not received a fair price for the milk they produce, which when compared to the price charged by retailers to consumers, which will sadly not come as much of a surprise to most people.

Before our farmers, dairy or otherwise, are driven out of business entirely then need action not words. If our governments at all levels do nothing then the future for agriculture may be grim, semi industrial and serviced by cheap migrant workers. Industrial milk production has been much trumpeted as the saviour of the dairy industry (and a number of important planning applications are in the pipeline) but it is not without its problems.

There are waste issues, slurry production being one of them, which can be enormously toxic and environmentally damaging. There are also likely to be animal welfare issues when it comes to industrial farming. Modern cows to produce large amounts of cheap milk, a modern Frisian may produce as much 4 times as much milk as equivalent cows did 50 years but it only has three (milking years) in which to do this.

Historically the old answer to low milk prices or a surplus was to turn excess milk into other dairy products, like butter, cream, cheese and yoghurt's. The problem we in Wales face is that many local Welsh dairies serving our urban centres are no longer in business – some around Cardiff were bought up and sold off for housing and diary operations in some areas relocated outside of Wales. What this all means is that we in Wales miss out, as Dairy products are potentially big business as some of our more successful organic producers can prove.

The development of railway communications during the industrial revolution provided s means for rapid delivery of farmers milk to towns and cities and lead to a growth of diary production. The first of the supermarkets (Sainsbury’s in Covent Garden, London, in 1869) sold “railway milk” from churns.

The milkman delivered direct to our doorsteps, his near demise came later as a direct result of super market price-cutting which has now, more or less, effectively killed him off. The decimation of rural railways following a Conservative Government (questionably motivated) decision to favour road transport weakened the very infrastructure that had driven an expansion of the dairy industry.

A 29 (gate price) pence litre of milk may end up being sold for 15 times as much, people pay good money for ‘health yogurt’ – which with the addition of bacteria, flavouring and a marketing campaign produce healthy profits for the companies that produce them. We have some excellent and very successful companies and producers doing just that, but, this potentially profitable sector of the agricultural economy in Wales is undeveloped.

As for buying local - around 40 per cent of our yogurt is made in France and Belgium, in 2009 more than 40 per cent of all Cheddar sold in the UK was actually produced outside of the UK. Yogurt and cheese aside; its a pretty similar story when it comes to butter. Only one of the most popular supermarket brands [Country Life] is actually made from UK milk. The bulk of our butter comes from Denmark and Ireland, and this is despite the fact that farm gate prices for milk remain consistently higher in Europe than here in the UK.

We (in the UK) when compared with eleven years ago now import almost half of our butter from abroad, cheese imports are also up, some 60 percent over the last eleven years. We are importing products that have added-value and are busy exporting the low-value milk products which are then ironically turned into butter, yogurt, etc and sold right back to us.

This is total madness; this is what happens in the developing or third world, not in the first world. In the developing world many countries have little choice but to export their raw commodities cheaply and then have little or no choice other than to buy back manufactured products made from their own raw materials.