QuickQuid – cut and run

QuickQuid

QuickQuid, Britain’s biggest payday lender have gone into administration after talks with the UK Financial Conduct Authority fell through. CashEuroNet UK, the US owned lender which is comprised of the “QuickQuid, On Stride Financial and Pounds to Pocket brands”, announced that all three US owned UK lenders have gone into administration on the 25th October.

According to their website, whilst the Company has gone bust and is unlikely to cough up the millions it owes, the lawyers make it explicitly clear that all borrowers must continue to pay off their debts to the Company “all outstanding loans remain subject to the terms agreed with the Company and borrowers should continue to make payments in the usual way according to the company’s terms and conditions”(Enova International, Inc., 2019). Talk about having your cake and eating it…

Why have QuickQuid gone into administration?

QuickQuid received more than 10,000 complaints and legal challenges in recent months due to loans being mis-sold over affordability, with rates typically as high as 1575%. After entering talks with the FCA over a high volume of complaints in order to try and resolve this, the talks fell through and CashEuroNet UK pulled the plug, likely deciding it’s better to up and run with the QuickQuid they made rather than stay and have to answer and pay back those they took advantage of at a time of austerity, poverty, deprivation and record levels of unemployment in Britain.

What does this all mean for working people in Britain?

The double standards and rank hypocrisy of capitalism in Britain couldn’t be clearer. Punishment for the poor and reward for the rich is the message, as borrowers who have been mis-sold aren’t guaranteed to compensation whereas QuickQuid sell off their assets and leave with all the funds taken from hard working people, a pretty penny for the parent company CashEuroNet UK, a QuickQuid indeed.

What should workers do?

If you live and work in Britain, you are a British worker, no matter where in the world you are from, we believe that the only thing workers can do is to organise, educate and retaliate in order to protect ourselves and our families from austerity, oppression and all other problems put onto us by the wealthy class and bankers. This is one of the essential reasons workers in Britain have come together and formed our own organisation. One single fact strikes out clear as day, whenever there is trouble in the economy it is the workers that pay the price for the greed of the wealthy and the political class in Britain, when there’s a debt to be paid, the ruling class and bourgeois state expect us to foot the bill.

 

A few further links on this story

Enova International, Inc. (2019). Brands & Services – Enova International, Inc.. [online] Available at: https://www.enova.com/brands/ [Accessed 27 Oct. 2019].

Grant Thornton UK LLP. (2019). Grant Thornton CashEuroNet UK LLC Administration. [online] Available at: https://casheuronetukadministration.grantthornton.co.uk/administration/ [Accessed 27 Oct. 2019].

CPGB-ML. (2019). The true level of unemployment. [online] Available at: https://www.cpgb-ml.org/2019/10/26/news/true-level-unemployment/ [Accessed 27 Oct. 2019].

CPGB-ML. (2019). Shameful levels of malnutrition in Britain. [online] Available at: https://www.cpgb-ml.org/2019/09/13/news/shameful-levels-malnutrition-britain/ [Accessed 27 Oct. 2019].

CPGB-ML. (2019). Join the party or become a supporter. [online] Available at: https://www.cpgb-ml.org/join/ [Accessed 27 Oct. 2019].

CPGB-ML. (2019). Workers for Brexit: why our party supported leave in the EU referendum. [online] Available at: https://www.cpgb-ml.org/2019/03/29/tv/workers-for-brexit-why-our-party-supported-leave-in-the-eu-referendum/ [Accessed 27 Oct. 2019].

CPGB-ML. (2019). About the Communists. [online] Available at: https://www.cpgb-ml.org/about/ [Accessed 27 Oct. 2019].

Housing: foreign investors head to Birmingham

seven capital birmingham

An abandoned old tesco at ground and derelict offices above are transformed into “Birmingham’s hottest property” by SevenCapital

A report in The Times on July 8 described the rush of foreign capital into Birmingham’s housing market. With cheap, cramped and ugly apartments flying up across the city, it is clear that there is money to be made.

Birmingham reportedly has the youngest population of any city in Europe, is now the most popular destination for those escaping from London and stands to benefit from even better rail links to the Capital once HS2 is completed (journey times of 1hr 15mins are already available on some services). Furthermore, with house prices a fraction of those in London it is easy to understand why workers from the south are looking to cash in and buy in Birmingham, and other poorer workers merely escape to cheaper rents in the West Midlands.

“While London and Manchester were previously the prime targets for foreign investors there has been a surge in interest in Birmingham, with overseas buyers snapping up as many as 100 flats each in new developments.

As well as the promise of huge yields renting to young people, investors are being lured by glossy brochures boasting that Birmingham is “one of the greenest [cities] in the UK” has “more miles of canals than Venice” and is home to the “iconic” Bullring. Another developer, whose conversion of a factory in the trendy Digbeth area is being marketed in Hong Kong, promises almost guaranteed rental income.

Seven Capital, which is behind numerous developments in the city, is telling investors that demand from tenants is so high that some properties are being let on the same day they are purchased.”[i]

The Times, which is not well known for being concerned with the prospects of ordinary working-class people reported that,

“Chloe Thorn, 26, has been saving for a deposit to buy a flat in Birmingham since she was 16. But when she began putting offers in she found that minimum deposits were either out of reach or flats were marked as investment-only. “It’s like being priced out of the city I’ve grown up in,” she added. “I remember when I first started looking in 2017 and seeing all these new buildings being built and thinking I may stand a chance of buying somewhere in the city once they are done. But once they went online to buy it was all investors-only on the majority.””

Capitalism only builds for profit

What Chloe failed to realise is that houses are not built so that working people can have a nice place to live, to bring up children and start a family. Under capitalism flats and houses are built so that they can be sold for a profit. Under capitalism, commodities (houses, cars, food, video games) are produced so that they can be sold on the market, they are not sold at their value, they will be sold for as much as the seller can persuade somebody to part with. Capitalism does not work for ordinary working people.

Housing under capitalism has become a vehicle for the wealthy to invest money in. The influx of foreign capital into housing in Birmingham is a consequence of the lack of better (more lucrative) schemes for the wealthy to invest in, and despite the claims of estate agents in Hong Kong and elsewhere, it is far from certain that investment like this can return the rents which these landlords hope for. Birmingham is a working-class city, more than 100,000 children live in poverty and one in five workers earn less than the Living Wage (£8.25p/h), recent accounts from the city council show that many workers cannot afford to pay their council tax with Birmingham owing £115m in outstanding arrears – not a cast-iron guarantee for great rental incomes.[ii]

Whilst estate agents will say anything to shift overpriced, poor quality housing, it is surprising that there are so many gullible enough to fall for it. Even in London the property bubble is due to pop, and there are already signs that in the highest end of the market the glory days are already over,

“Viewed from Bangalore, the purchase of a newly built three-bedroom apartment in London for more than £1.4m seemed like a safe investment bet. The top-floor three-bedroom home under construction in Keybridge House south of the Thames boasted views of the City of London and the Shard skyscraper. As Shonu Bhandari considered the purchase two years ago, agents told him he could expect the value to rise 15 per cent before the property had even been finished. The Indian entrepreneur, who runs a medical products company, happily signed up to buy. But his purchase soured quickly. When Bhandari approached a mortgage lender, it valued the property not at 15 per cent more than he had agreed to pay — but at 20 per cent less. With completion of the building looming, he signed over the property to a new buyer in March this year for £1.2m, losing more than £200,000 of his deposit.

…One new-build brochure from the estate agent Savills in 2016 said price growth in prime central London was expected to average 21.5 per cent by the end of 2020. Prices have so far fallen 10.4 per cent since that date, according to LonRes, a data provider.

“Global capital entering local real estate markets is not particularly new, but what was new was the intensity with which it entered places like Vancouver, New York, London, Melbourne and Sydney,” says Andy Yan, a planner and academic in Vancouver.”

“…In London, research by Savills shows construction continues to be out of step with demand. The London market over the next five years will need 42,500 new homes a year for sale or rent at cheaper than market rates, the property agency found — but only about 3,500 a year will be built.

Demand also far exceeds supply in the “lower” and “mid” markets, up to £700 per square foot. But above that, planned supply starts to exceed demand. In the £700 to £1,000 a sq ft category, annual demand for 7,000 homes a year will be catered for by almost 10,500.  Prices at the top end are falling, but the median London house price remains more than 12 times average earnings. “What we don’t need in London are more £1m-plus apartments with swimming pools, spas, cinema suites and service charges of £7 or £8 a sq ft [per year]. Those are not for normal Londoners,””[iii]

Socialism the only answer

Houses should be homes for people, shelter and a secure family life is a right for every worker. Houses should not, as they are under capitalism, be commodities, sold only to those who can afford to buy or rent them, rather than provided for those who need them. By its utter inability to solve the housing question and meet this basic need of working people, the capitalist system is providing yet more proof that it is well past its use-by date and due for demolition.

The Eighth Congress of the Communist Party (CPGB-ML), held in September 2018, passed a resolution on housing which put forward the basic demands of the Communist Party on the housing question. These demands form the basis of the party work on housing, and should be taken up by all advanced workers:

  1. Scrap the 2016-17 housing bill:the immediate scrapping of the 2016-17 housing bill, which threatens hundreds of thousands with poverty and homelessness.
  2. Build council houses not ‘affordable homes’:the provision of at least 300,000 new council houses per year to end the crisis.
  3. Guarantee secure social housing:guaranteed, secure and well-maintained social housing for all who want it, close to people’s work and families, and the abolition of divisive allocation criteria.
  4. Council ownership not ALMOs:the return of housing association and ‘non-profit’ properties to council ownership.
  5. Abolish housing charities:the abolition of housing charities and the reintroduction of the legal right to decent, secure housing for all; slums, overcrowding and homelessness are an indictment on capitalism and a crime against humanity.
  6. Set a rent cap: the introduction of a rent cap at 20 percent of minimum wage for all privately rented accommodation, and the scrapping of housing benefit (a subsidy to landlords that has helped to fuel rent rises).
  7. Protect existing council housing:the scrapping of all schemes that fuel prices, create shortages and offer subsidies to landlords and developers.
  8. Use existing surplus housing stock:the confiscation of all surplus homes and unfinished developments and their transformation into council housing.
  9. Provide decent homes for all:the establishment of residents’ management committees to oversee planning and maintenance and ensure that all workers have access to adequate space, necessary amenities and decent facilities, including having usable and pleasant outdoor spaces and community halls.

 

Some links

[i] https://www.thetimes.co.uk/article/birmingham-housing-foreign-buy-to-let-investors-pricing-out-locals-bkdfb2ws5

[ii] https://birminghamworker.org/2019/06/13/birmingham-council-cash-reserves-increase-by-736/ & https://birminghamworker.org/2019/07/03/thousands-of-birmingham-workers-too-poor-to-pay-their-council-tax/

[iii] https://www.ft.com/content/ea9c9abc-943d-11e9-aea1-2b1d33ac3271

Council tax becoming the new Poll Tax claims IPPR

21st century socialism

The first premise of all human existence is … that man must be in a position to live in order to make history. But life involves before anything else eating and drinking, a habitation, clothing and many other things” (K Marx and F Engels, The German Ideology (1846), International Publishers, New York, 1947, p.16).

A short column in the FT on Saturday 18th May notes the publication of a report by the Institute for Public Policy Research (IPPR) into council tax inequality. The report, focused on London but taking into account some statistical evidence for the whole of Britain concludes that council tax is beginning to look a lot like the ill-fated Poll Tax which caused Margaret Thatcher so many problems thirty years ago.

The UK is ranked by the OECD as having, after France, the greatest reliance on property taxation of all OECD country respondents as a proportion of GDP. For 2017, property taxes accounted for around 4.2 per cent of GDP, more than twice the OECD average.

The IPPR report states that today’s system of council tax leaves those living in the lowest-value homes paying a higher proportion of council tax with regard to property value, than those living in the highest value homes. This is particularly acute in London where property investment has taken house price prices to ludicrous levels. The study found that a household in a Band A property in London would on average pay nearly five times what a Band H household would pay as a proportion of property value. The poorest Londoners pay 8.1% of household income in council tax, whilst those in the top income decile contribute just 1.3% of their declared earnings.

“Those in the lowest-value homes in London are paying a higher proportion of council tax with regard to property value than those in higher-value homes… To the extent that the distribution of property values is a proxy for wealth, this is not fair… The regressive nature of the present council tax system is embedded in its design… The highest-value property in Band H will attract a maximum of three times the tax on the lowest-value homes, even though (based on the current banding system) the high-value home is worth at least eight times the low-value one in 1991 property prices. As a proportion of property value, lower-value properties pay a larger proportion than higher-value properties.”

Arrears

“Across England”, according to the report, “officially recognised annual total council tax arrears increased from £836 million in 2013/14 to £944 million in 2017/18. Moreover, the total arrears outstanding in 2017/18 were £3 billion, up from £2.5 billion in 2013/14. Research by the anti-poverty charity Zacchaeus 2000 Trust (Z2K) has also found that a number of councils are using bailiffs, and claimants are being charged court costs on top of their arrears… At the most extreme, 305 people were given custodial prison sentences for non-payment of council tax between 2013/14 and 2017/18, with another 6,278 receiving suspended sentences…”

Council tax

No tinkering with the present system of taxation will be enough to stop the steady slide of hundreds of thousands of workers and middle classes into absolute destitution and misery. The crisis of overproduction, its consequent lay-offs and redundancies destroy the purchasing power of the masses who are also crushed under the weight of rising prices and taxation which they can no longer afford. Millions of workers today are a pay cheque away from ruination. Raising taxation of empty homes in London does nothing to undermine the financial power of the landlord and capitalist class, it does nothing to alleviate the underlying cause of the people’s misery – capitalism. Only under socialism, where the private ownership of the land by a tiny few is replaced with a socialist system of land ownership and taxation, where the recurrent crisis of capitalism is done away with and replaced by planned production can the working man and woman finally find themselves liberated.

Note

The IPPR is from a social democratic think-tank with a long history of providing Labour IPPR logoparty class collaborators with policy proposals designed to paper over the cracks of an increasingly divided and unequal society, its chair of trustees is Lord Adonis and in 2016 it appointed Tom Kibasi its Director. Mr Kibasi has worked for the Rockerfeller Foundation and the Bill Gates Foundation.

Film Review: Black 47

black-47

Review of ‘Black 47’ now showing at the MAC, Cannon Hill Park

Black 47 has been described as a ‘revenge western’. Essentially the film is an Irish Rambo reworked for the 1840’s, and whilst the historical setting, villains and back story are a welcome change from the mundane LA, New York and Gotham, it’s another superhero story for the 21st century.

The film Black 47 will please most progressive film goers and by all accounts it has been a huge commercial success in Ireland. Depicting the grim scenery of Ireland in the period of the famine, it’s an action film that has pulled in audiences keen on something a bit more authentic, the same folk who’ll soon be going to watch ‘Peterloo’. The Wildcard Distribution chief exec Patrick O’Neill upon seeing his returns from the opening weekend gushed,

“It’s very rewarding to see audiences from everywhere in Ireland turning out in such numbers to experience Black 47 on the big screen. The results for Black 47 are a fine example of what can be achieved…” Screen Ireland chief James Hickey said that that they “are absolutely delighted to see Irish audiences coming out to watch this film in cinemas right across Ireland.”[i]

Much has been made in the press that Black 47 is the first film to deal with the famine of the 1840’s, and this writer is certainly not qualified to challenge this assertion. What we may rightfully ask ourselves is whether the famine is anything more than a backdrop to a film which is essentially another action film, this time in the setting of the Irish famine.

The central character, a Connaught Ranger ‘Feeney’ returns home from fighting in the British Army in Afghanistan and India. Upon his arrival he finds his mother dead and evicted, his brother hanged and only his sister in law and their starving children survive holed up in a squat. Our hero is witness to the widespread misery of Irelands peasant population as he wanders the landscape in search of his old life. His motivation at the start of the film is quite clearly to pay a mere flying visit to his native land, as he relates to what is left of his family that he is off to live in America. Before his plans can be put into effect he is witness to the eviction of his surviving family from their squat, and coming down from his horse to protest finds himself brutalised and in jail. Brought before an officer in charge it’s a matter of minutes before our hero is up to his neck in blood and guts having, single handed, killed about a dozen police in their own station, shooting hacking and chopping the hapless RIC (Royal Irish Constabulary) with his gun, fists and kukri. From this point on it’s a blood soaked horse ride through Irish scenery, Feeney takes out a rent collector by lopping off his head, hangs the local magistrate (just after he sentences a young man to transportation), gives a bit of rough treatment to a proselytising Protestant preacher who’s dishing out soup to Catholics willing to renounce the papacy, before he kills the land agent (Kulak in our parlance) responsible for the family evictions.

At this point in the film our hero is being tracked by an old army buddy (played by Hugo Weaving, a Hollywood actor of wide fame) and an ambitious but young army Captain (who is accompanied by his aide Private Hobson, of whom more in a moment) on instructions from the British army to nip such rebelliousness in the bud. Upon catching up to this one man war machine, a shoot out inevitably ensues and the army captain’s orderly bottles it at the decisive moment failing to kill our hero when he has the chance. Back on his horse it’s a short gallop for Feeney to the next bloody encounter which takes place at the home of Lord Kilmichael (played by Jim Broadbent). This time it’s the orderly causing a ruckus, being a mere private his sympathies are with the poor and angered by the sight of starving peasants at the gates of Kilmichaels country seat, he pulls his gun on the guards protecting the house and its grain stores. Sadly for our private, he is not made of the super-hero material and is unceremoniously blown to pieces by the police. The local landlord and nobleman Lord Kilmichael now ventures off on his way to Dublin to personally escort his horde of grain for export and sale, the political point being made by the Director that the country was full of food whilst the Irish were being left to starve. All this takes place under heavy police guard, but that will never be enough to stop Feeney, who kidnaps the Lord from the local alehouse, assisted at a critical juncture by his old army buddy Hannah.

As Hannah is brought out the next morning to be executed by firing squad for his actions, the firing squad itself is shot to pieces by Feeney and into the square bursts a man on horseback who himself is blown to pieces on the orders of our loathsome young army captain who mistakenly thinks its Feeney on the rampage. Imagine the look of shock when he discovers that the Irish Rambo has sent in Lord Kilmichael as fodder. Gun fights now ensue and everybody gets their just deserts including our hero who manages to escape (though fatally wounded) assisted by old army buddy Hannah. Just before keeling over to die, the hero offers his old mate his last words of advice “get yerself to America”. Only in modern day Ireland could an Irish hero be this type of patriot.

In an interview with the Director, Lance Daly, it was said that no film on the Great Famine had been made for the big screen previously, despite its significance to Irish history. Daly is reported by RTE to have said “Given the singular importance of the Great Famine in Irish history, and that it has never been seen on our cinema screens before, our cast and crew felt a huge responsibility to make a film that was not only historically accurate [but] emotionally true”

Quite how the great famine was depicted in this film is anybody’s guess. Miserable wretched peasants, starving and under the whip of British colonialism, yes this is depicted in passing. The motive force of the film however, is the sole hero, the super human super-soldier Mr Feeney, depicted by James Frecheville. This, once again, is a story about a super hero. The masses are wretched and helpless, only an Irish Rambo (himself bound for America) can wreak vengeance on the exploiting class and its lackey’s.

The reality of life is that vengeance is meted out on the exploiting class by way of collective action against the exploiters. Rebellion is undertaken by the masses and not by lone heroes. The prevalence of stories about lone heroes is a result of the influence of bourgeois thinking on the arts and the minds of the people. Great acts of daring and courage are undertaken by individuals of that there is no doubt. Such acts when properly directed form a part of the great struggle of exploited humanity aimed against the enemy. The question of the relationship between heroes and the people influenced the development of the Irish nationalist movement, as it did in a great many other social movements. In Russia the Bolsheviks fought tenaciously against the theory of the Narodniks and socialist-revolutionaries who both advocated that by individual acts of daring (or indeed individual terrorism) the masses could be mobilised. Such theories elevated the role of “heroes”. J V Stalin speaking in 1938 said that,

“The theory of “heroes” and the “crowd” is not a Bolshevik, but a social-revolutionary theory. The heroes make the people, transform them from a crowd into people, thus say the social-revolutionaries. The people make the heroes, thus reply the Bolsheviks”

So, is it worth a trip to the cinema?

Whilst on this particular trip to the cinema it was a joy to see landlords, judges, rent collectors and such like meet their sticky end, it feels as though this film was a wasted opportunity to tell the real tales of rebellion, or even to present the people, the masses as strong, courageous, dignified and rebellious, it instead chose to portray them as meek, wretched and in some instances treacherous. The film was also a chance to break with the super hero narrative so all pervasive in the 21st century. How pathetic that the century which likes to constantly remind itself that it abhors the ‘cult of personality’ of the 20th is incapable of anything but the most narrow individualism and hero fantasy.

It remains the case that the history of those days is most accurately recorded by the people themselves, in the songs and stories of Ireland and it is a sad sight that the cinema which has so much potential as an art form is incapable of telling these stories and passing on the judgement of the people who lived through those agonies. Lance Daly correctly reflects that his central character would have been considered by the starving people of Ireland to “have taken the Kings Shilling”. A song written by K.T. Buggy in the 1840’s titled “Saxon Shilling” deals with this very issue, the most famous rendition of which was given by an honorary son of Birmingham Luke Kelly, and is a fitting tribute to this modern Irish super hero:

THE SAXON SHILLING.

Hark! a martial sound is heard—
The march of soldiers, fifing, drumming;
Eyes are staring, hearts are stirr’d—
For bold recruits the brave are coming.
Ribands flaunting, feathers gay—
The sounds and sights are surely thrilling,
Dazzl’d village youths to-day
Will crowd to take the Saxon Shilling.

Ye, whose spirits will not bow
In peace to parish tyrants longer—
Ye, who wear the villain brow,
And ye who pine in hopeless hunger—
Fools, without the brave man’s faith—
All slaves and starvlings who are willing
To sell yourselves to shame and death—
Accept the fatal Saxon Shilling.

Ere you from your mountains go
To feel the scourge of foreign fever,
Swear to serve the faithless foe
That lures you from your land for ever!
Swear henceforth its tools to be—
To slaughter trained by ceaseless drilling—
Honour, home, and liberty,
Abandon’d for a Saxon Shilling.

Go—to find, ‘mid crime and toil,
The doom to which such guilt is hurried;
Go—to leave on Indian soil
Your bones to bleach, accurs’d, unburied!
Go—to crush the just and brave,
Whose wrongs with wrath the world are filling;
Go—to slay each brother slave,
Or spurn the blood-stained Saxon Shilling!

Irish hearts! why should you bleed,
To swell the tide of British glory—
Aiding despots in their need,
Who’ve changed our green so oft to gory?
None, save those who wish to see
The noblest killed, the meanest killing,
And true hearts severed from the free,
Will take again the Saxon Shilling!

Irish youths! reserve your strength
Until an hour of glorious duty,
When Freedom’s smile shall cheer at length
The land of bravery and beauty.
Bribes and threats, oh, heed no more—
Let nought but Justice make you willing
To leave your own dear Island shore,
For those who send the Saxon Shilling. [ii]

[i] http://entertainment.ie/cinema/news/Black-47-is-the-No1-Irish-movie-of-the-year-at-the-box-office-on-its-opening-weekend/408146.htm

[ii] written by K. T. Buggy, 1840s The Spirit of the Nation: Ballads and Songs by the Writers of The Nation Dublin, James Duffy, 1845. p. 58 & Georges Denis Zimermann: Songs of Irish Rebellion (Irish political street ballads and rebel songs) 1780–1900