Virgin offers train upgrade deal
http://news.bbc.co.uk/1/hi/business/8057663.stm
• Virgin's current franchise deal with the government
ends in 2012.
• Sir Richard Branson has said London-to-Birmingham
journeys could be cut to below an hour and London to
Glasgow below four hours, and the southern end of
the line could be connected to Heathrow Airport or the
high-speed line to the Channel Tunnel
• It would cost at least £1bn and Virgin would make the
investment if it could rely on running the trains well
into the 2030s, he added.
• There are growing calls for train companies to be
given more freedom to invest in services. The
Conservatives have said they would offer operators
longer franchises.
• But the government has tightened its grip on private
train operators.
Virgin offers train upgrade deal
http://news.bbc.co.uk/1/hi/business/8057663.stm
• Why do the rail regulators renegotiate operating
franchises every few years?
• What would be the advantages and
disadvantages of a longer licence:
– To the train operators
– To the passengers
– To the government
• Licences should only run for longer
if….
• Licences should not run for longer
because….
Measles outbreak 'worst in
years'
http://news.bbc.co.uk/1/hi/wales/8057661.stm
• There has been a "massive" measles outbreak
in Wales.
• Numbers this year are already four times the
highest figure recorded over the past 13 years.
• Latest figures show that only 86% of two-yearolds in Wales have been given the MMR
vaccine, ranging in different areas from 78% to
92%.
• The vaccine needs a 95% uptake to achieve the
‘herd immunity’ needed to ensure the disease
cannot take a hold in individuals who are not
vaccinated.
Measles outbreak 'worst in
years'
http://news.bbc.co.uk/1/hi/wales/8057661.stm
• Draw a graph to show the reason for offering all
children free vaccinations against Measles
• What role does information play in this case?
Show that on your graph as well
• Could the government make vaccinations such
as the MMR compulsory?
• The government should not make
vaccinations such as the MMR
compulsory because…..however…..
Obama moves to curb car emissions
http://news.bbc.co.uk/1/hi/world/americas/8056908.stm
• Obama has announced tough targets for new fuelefficient vehicles in order to cut pollution and lower
dependence on oil imports.
• Manufacturers would be required to begin improving fuel
efficiency by 5% a year from 2012.
–
–
–
–
–
–
5% yearly rises in fuel efficiency from 2012 through 2016
Cuts oil consumption by estimated 1.8bn barrels
34% reduction in emissions by 2016
Cuts equal taking 177m cars off the road
Price of cars may rise by $1,300
The president said this would be offset by lower fuel cost within
three years
• The savings in oil will amount to last year's combined US
imports from Saudi Arabia, Venezuela, Libya and Nigeria
Obama moves to curb car emissions
http://news.bbc.co.uk/1/hi/world/americas/8056908.stm
• Who benefits most from these proposals?
• Identify any risks of government failure
that you see in the proposals
• What is needed to make them work?
Shell shareholders revolt on pay
http://news.bbc.co.uk/1/hi/business/8058103.stm
• Shell has been criticised for awarding bonuses
as part of a long-term incentive plan despite
missing performance targets.
• Almost 60% of Shell's shareholders voted
against its remuneration report
• Shell's incentive award targets are largely based
on its performance against rivals BP, Chevron,
ExxonMobil and France's Total, with the
company expected to outperform three of its
peers.
• Despite record profits last year on soaring oil
prices, Shell was ranked fourth out of five.
Shell shareholders revolt on pay
http://news.bbc.co.uk/1/hi/business/8058103.stm
• Why do shareholders have the right to
take this action?
• Should directors receive long-term
incentive payments?
• What are the economic benefits of
incentive payments?
• Directors of companies should receive
long-term incentive payments if…..
Further slowdown in UK inflation
http://news.bbc.co.uk/1/hi/business/8057032.stm
• CPI fell to 2.3% from 2.9% in March, the Office
for National Statistics (ONS) said.
• The decline was more than economists
expected. The annual inflation reading was the
lowest in more than a year.
• RPI fell further to -1.2% from -0.4%, the biggest
drop since records began in 1948.
• This decline was also greater than expected.
• The Bank of England expects CPI to fall further
during the year, particularly given the rapid and
ongoing deterioration in the labour market
Further slowdown in UK inflation
http://news.bbc.co.uk/1/hi/business/8057032.stm
• Why does CPI remain at a higher rate than
RPI?
• What risks are posed for the UK economy
by deflation?
• What does the extent of those risks
depend on?
• Should the government make fighting
deflation its main macroeconomic
objective at present?
And finally….
MPs to debate changes to expenses
http://news.bbc.co.uk/1/hi/uk_politics/8058736.stm
• Major changes to MPs' expenses are to be
debated as Gordon Brown warns of the need to
end the "gentlemen's club".
• Commons Speaker Michael Martin proposed
emergency changes on Tuesday, after
announcing he would quit over the row.
• Gordon Brown has suggested that, rather than
the House of Commons being ‘self-regulated’,
their expenses should be subject to
‘independent regulation’
And finally….
MPs to debate changes to expenses
http://news.bbc.co.uk/1/hi/uk_politics/8058736.stm
• And the question is…
• …on the assumption that MP’s do need
some form of recompense for the costs of
living in constituencies (their first place of
work) which may be remote from
Westminster as their second place of
work…
• What form of regulation would you, as new
voters, suggest in order to give you
confidence in the system?