ANTICIPATING A PREFECT STORM

On Friday evening, the much anticipated 6 Nations rugby internationals kick off, with Wales v England. Rugby fans are bracing themselves for the ordeal of a Friday night international match, with an 8pm kick-off and the logistical perfect storm that awaits them. Rugby aside simply getting to (and from) Cardiff on a Friday evening, with the lack of late trains may more than try fans patience.

If it’s going to be grim for Welsh Rugby fans, trying to come south or east from North and West Wales to get to Cardiff before kick-off then it’s going to be even grimmer afterwards when they try to get home. Bitter experience relayed by rugby fan have told me that the franchise holders will run short trains, by the time these trains reach Abergavenny, Pontypool, Cwmbran, Chepstow, Caldicot, Severn Tunnel Junction and Newport (not to mention Hereford, Lydney and Gloucester) they will be so full of people that passengers cannot board them.

Spare a thought for England fans, as the last London train leaves Cardiff before the game actually ends. Now much of the blame must lie with the 6 Nations organisers who once again have put profit before the interests of the fans and the game. Simply telling fans to go early, on a working day, on an evening (after work) with in some case little prospect of getting home at a sensible hour just won’t do. I seem to recall that Friday night games were only an experiment – clearly one that brings rich rewards to the Rugby authorities and immense inconvenience to the fans.

The usual old lame excuses are no doubt being rolled out by the franchise holders as to why there was no space, travel why the trains were short, etc. The real reason for the shoddy service is that it’s about profits, extra trains and extra carriages have to be rented and this hits profits and dividends.  The day that the rail franchise (in Wales and the marches) is run as a not for dividend profit franchise cannot come soon enough. 

OUR NATURAL RESOURCES

For too long our natural resources have been run for the benefit of others with few real or lasting benefits trickling down to the people of Wales. The final say on how our natural resources are exploited and developed should be the responsibility of the Welsh people (and the Welsh Government) and any profits or dividends should directly benefit the people who live here. Our water resources including the responsibility for sewerage for the whole territory of Wales should be the responsibility of the Welsh Government. The Crown Estate remains unaccountable to the people of Wales and all profits from its holdings (which includes on and off shore wind farms) are passed to the UK Westminster Government. Profits from these holdings are likely to grow significantly mostly due to the growing demand for renewable energy. Ownership and control over the Crown Estates in Wales should be transferred to the Welsh Government.

PREPARATION, ANTICIPATION, FRUSTRATION…

With another round of eagerly anticipated autumn rugby internationals set to run through November (aside from a collective fingers crossed) across much of the former county Gwent (and no doubt elsewhere) rugby fans and rail users will be preparing themselves for the ordeal of trying to get into Cardiff on overcrowded (or full) trains). I have no doubt that the franchise holder will run short trains, which by the time they reach the stations (e.g. Abergavenny, Pontypool, Cwmbran, Chepstow, Caldicot, Severn Tunnel Junction and Newport) in the green and pleasant old county of Gwent, will be so full of people that passengers cannot board. Every year in recent years it has been the same with the same old lame excuses being rolled out by the franchise holders to why there was no space, why the trains were short, etc. The real reason for the shoddy service is about profits, extra trains and extra carriages have to be rented and this hits profits and dividends.  The day that the rail franchise (in Wales and the marches) is run as a not for dividend profit franchise cannot come soon enough. 

AVANA BAKERIES

Yesterday’s news about the threat to some 650 jobs at Avana Bakeries in Rogerstone is a bad news for the employees, the company and for Newport. The loss of a multi-million pound Marks and Spencer cake order contract to a firm in Oldham (M&S basically just pulled the plug on its contract with Avana Bakeries) has left jobs and the even site under threat. The contract took up around 85% of what the Avana bakery produces – something which unfortunately left the company in a vulnerable position. It has been acknowledged that some of the more unscrupulous larger retailers and supermarkets have in the past thrown their weight around when it comes to allowing suppliers to chase contracts with other companies thus avoiding this dangerous dependency on specific contracts. This may or may not be the case with the Avana M&S contract. Despite the spin from M&S the main motivator for this action probably comes down to squeezing out extra profits than anything else. The contract, won by Avana in July 2002 was warmly welcomed bringing job security, investment and more jobs, after a bad fire at the site in December 2001 which left the bakery under threat of closure. The Welsh Government, local AMs and MPs, Newport City Council and the Secretary of State for Wales need to ensure that every opportunity is pursued to allow the company the opportunity to get back on its feet after this unexpected blow. 

GAS PRICES AND GAS PROFITS

Here we go again - British Gas - owner Centrica is to raise its average prices by 6% from today (Friday 16th November 2012), they have stated that the price rises are due to costs that are out of its control. Meanwhile Centrica, with 15.8 million customers, says that required investments and measures to meet carbon reduction targets have added about £50 to the average bill. The company, which recently issued a trading update, stated that wholesale gas prices were now 13% higher this winter than last. The company will report its full-year profit figures in February 2013.

Centrica stated that average UK residential gas consumption for the first 10 months of 2012 was 9% higher than for the same period of 2011, while average electricity consumption was 1% lower. On Wednesday (14th November 2012) SSE (one of the UK's biggest energy suppliers) reported a 38% rise in half-year profits. They made £397.5 million pounds profit in the six months to the end of September, this compares with £287.4 million in the same period last year. SSE, along with most of the members of the big 6 energy cartel, raised its domestic gas and electricity prices by an average of 9% one month ago.

Plaid has long voiced its concerns over allegations that the 'Big Six' energy companies have been manipulating wholesale gas prices in an attempt to save millions of pounds. The allegations, brought forward by a whistleblower, are currently being investigated by City watchdog the Financial Services Authority, whose findings could trigger a crisis of confidence in the energy sector similar to that in the banking industry following the rate-fixing Libor scandal. Plaid is concerned that the people of Wales are suffering disproportionately as a result of the 'Big Six' monopoly due to the fact that they're less likely to switch energy suppliers and therefore receive higher bills than anywhere else in the UK.

Plaid Cymru MP Hywel Williams said:

"These allegations against some of the 'Big Six' energy companies are deeply troubling and hold the potential to prompt a fresh crisis of confidence in yet another sector of British society.

"Just as was the case with the Libor scandal where the inter-bank lending rate was fixed, claims that wholesale gas prices have been manipulated raise serious questions over scrutiny and transparency.

"Most of the 'Big Six' energy companies are already under fire having declared intentions to push up their prices before the end of the year. This will see ordinary families having to keep an even closer eye on their budgets while the eldest and most vulnerable face an increasing risk of hypothermia or malnutrition as they're forced to choose between heating and eating.

"It is clear that the competitive market fails the neediest within our society. The Party of Wales believes that utilities should be operated on a not-for-distributable-profit model, like Glas Cymru, where profits are reinvested rather than pocketed by shareholders.

GAS PRICES, PROFITS OR DIVIDENDS?

Centrica Shareprices

Centrica, which owns British Gas, has warned that customers may face higher energy bills. Centrica says that "end-user prices" do not reflect the price they are paying for gas on the wholesale market. Additionally the company also stated that it was likely to cut investment in the UK after the Government raised taxes on North Sea oil and gas production. Centrica says that the tax hike would erode profit growth in 2011, sending the company's shares down more than 4%. Hmmm gas prices? falling profits or fresh dividends for shareholders? Your new bill coming to a letter box near you...