Showing posts with label Oil Spills. Show all posts
Showing posts with label Oil Spills. Show all posts

Thursday, December 7, 2023

Voice From The Back: Cold and skint (2010)

The Voice From The Back Column from the December 2010 issue of the Socialist Standard

Cold and skint 

One of the illusions that seems to persist about capitalism is that in Britain it is gradually getting a little bit better, but the facts contradict that notion. “The number of households struggling to afford to stay warm has more than doubled in the past six years according to official figures. An extra 2.5 million homes have gone into fuel poverty since 2004, a report by the Department of Energy and Climate Change said. Homes are defined as living in fuel poverty if they have to spend more than 10 per cent of their income to maintain a minimum temperature of 21C in their main living area.” (Times, 15 October) “Almost two-thirds of older people in Northern Ireland cannot afford to heat their home through the winter, it has been revealed. The fuel poverty rate among people aged over 60 is up 15% on four years ago and now stands at 60.5%, according to the latest House Conditions Survey. The study conducted by the Housing Executive shows that the situation is even worse for older people living on their own – with almost four-fifths officially designated as living in fuel poverty.  (Independent, 28 October) Amidst all these bureaucratic figures one thing is obvious, during the last six years more working class kids and old folk have had to go to bed shivering. This is progress?.


Big bucks ballot

Defenders of American capitalism are fond of claiming that it is a model of  democracy in action. It is however a strange sort of democracy wherein money is the real dictator. Take the election campaign of Meg Whitman for the California Governorship. “With nearly two weeks to go before the election the eBay billionaire’s campaign to become chief executive of California has already smashed all records. At $140 million (£89 million) it is the most expensive non-presidential campaign in American history and the deepest any candidate has ever delved to fund their campaign.” (Times, 25 October). There is nothing unique in large corporations pouring millions of dollars into election campaigns, but in this case we have an individual spending a grotesque amount that represents about $8.24 for every one of California’s 17 million registered voters. Her opponent has spent a “mere” $20 million, that is just over a $1 a voter. Surely this is a weird sort of democracy.
 

Profits before safety

In their ruthless pursuit of bigger and bigger profits the owning class care little for human life or the pollution of the planet, but even by their standards the oil rig disaster in the Gulf of Mexico illustrated a complete contempt for humanity in capitalism’s efforts to cheapen production costs. “The companies involved in drilling the BP Macondo well in the Gulf of Mexico were aware that the cement they used to seal the well before it blew out was unstable. That is the conclusion of a US presidential panel investigating the reasons behind the April 20 explosion and ensuing oil leak. Both BP and the US company Halliburton had received test results on the cement showing it to be unstable – but neither acted on the data.” (The Week, 29 October) All the companies involved are trying to shift the blame for the explosion  on to each other, but the truth is that capitalism by its very nature causes such disasters. Capitalism, lets face it  – is a disaster!


Another illusion goes

One of the illusions about capitalism that its supporters are always proclaiming is that it is a ruthlessly efficient society that rewards honesty and punishes double-dealing. It is not a view shared by the capitalist class themselves as illustrated by this recent European Commission report.. “The European Commission has fined 11 of the world’s largest airlines £799 million for their part in a conspiracy to fix the price of cargo shipments. British Airways is among the carriers to be fined and has been ordered to pay a 104 million euro (£90 million) penalty.” (Times, 10 November) The capitalist class are fond of lecturing workers about honesty, but when extra profits can be realised they are not adverse to a bit of sharp practice.



Saturday, August 5, 2023

Voice From The Back: The arrogance of the capitalist class (2010)

The Voice From The Back Column from the August 2010 issue of the Socialist Standard

The arrogance of the capitalist class

In a society wherein children are trying to survive on a dollar a day the obscene wealth of the owning class and their flaunting of their riches has recently shown a particularly obnoxious example. “A bidder has agreed to pay $2.63 million for a steak lunch with the billionaire investor Warren Buffett in a charity auction held on eBay Inc’s website. The highest bid in the 11th annual auction topped the previous record $2.11 million paid in 2008 by Zhao Danyang, a Hong Kong investor. Wealth manager Salida Capital Corp of Toronto won with a $1.68 million bid in 2009.” (Reuters, 11 June) Millions of dollars spent on lunching with a billionaire while millions of children starve, do you need any other reason to get rid of capitalism?


What recession?

As the British government announces massive cuts to deal with the economic recession it is interesting to note that recession or not the owning class still manage to spare a few coppers for their art collections. “Last week was one of the biggest ever in the world of London’s art auctions, with the recession failing to stop records being broken at the Impressionist/Modern evening sales at both Sotheby’s (22 June) and Christie’s (23 June)” (Observer, 27 June)  A Picasso went for over £34 million, a Manet for over £22 million and a Klimt for just under £19 million. It is nice to see that our betters are not letting an economic downturn affect their appreciation of artistic merit.


Let ‘em fly copters

The arrogance of the Russian ruling elite is prodigious but even by their standards this takes a bit of beating. “As Moscow residents sweltered in an unprecedented traffic snarl-up, the governor of the region around Moscow offered an unusual solution on Friday: buy a helicopter. ‘I fly in a helicopter. (You) should also buy helicopters instead of cars – then you do not need roads,’ Moscow Region governor Boris Gromov told journalists, the RIA Novosti news agency reported.” (Yahoo News, 2 July) This crass statement brings to mind Marie Antoinette’s reputed statement on hearing that the lower orders were rioting because of the lack of bread “Let them eat cake”. In Marie’s defence she probably never said such a thing, but Boris did and he should remember Marie’s fate.


The silent spillage

The Press and TV have given great prominence to the oil spillage in the Gulf of Mexico but very little has been reported about the oil disasters that continue to plague Nigeria.” A series of spills, some of them the responsibility of the American multinational ExxonMobil, have been polluting the Niger delta for five decades. One estimate says the amount spilled in the region over nearly 50 years totals 10.5 million barrels. That is more than five times the worst estimate of the spillage so far from the Deepwater Horizon leak in the Gulf. Yet despite the pollution, illness and poverty caused by the ongoing leaks in Nigeria, they rarely make the international headlines. And there has been no high-profile effort to correct the situation.” (First Post, 17 June) The spillage on the USA’s shores may be more news-worthy but the pollution in Nigeria is just as deadly. It is just another example of how in its quest for more and more profits the capitalist system pays little regard to human health or happiness.


Stop Moaning. Work Harder

Next time you complain to your boss about being exploited let us hope he doesn’t read this piece of nonsense. “People who make their colleagues miserable by constantly moaning at work may actually be suffering from a mental illness, a study suggests. According to researchers in Germany, they are suffering from a new condition called post-traumatic embitterment disorder. …The findings are based on a two-year study of 21 people by researchers at the University of Berlin.” (BBC News, 20 June) Presumably the “researchers” didn’t moan or complain and no one mentioned to them that research that only used 21 people is hardly convincing. Here’s to the day when more and more of us “suffer” from post traumatic embitterment disorder. The researchers may call it a mental disorder – we call it good sense.

Sunday, June 19, 2022

Voice From The Back: Keep ’em laughing (1999)

The Voice From The Back Column from the May 1999 issue of the Socialist Standard

Keep ’em laughing

“ATTITUDE CHANGERS” That’s what we call our irresistible HERMAN™ cartoon posters that will motivate employees to . . .
Show up every day
Show up on time
Turn out better work
At lower cost, too!
. . . instead of laughing at you or your company, they’re laughing at HERMAN. Clement Communications (UK) Ltd.


What a surprise!

Police forces across the country have been taking part in a huge fiddle in which they have pretended to detect tens of thousands of crimes and have wiped from the records a mass of other petty crimes, a Guardian investigation has revealed . . . In some cases the crimes were pure fiction invented simply so that they could be listed as detected. The criminals were virtually guaranteed that they would not be prosecuted. Some of them were rewarded with day trips out of prison, free meals and visits to girl friends. Guardian, 18 March


Still mystified

The combination [of high growth and low inflation] has been called the US economic miracle, and I do not think anyone has put their finger on how it works. One of the main factors is the growing use of technology, which allows companies to keep down costs. Despite the low level of unemployment, at 4.4 percent, there is less security in the jobs market, so wages and inflation are unlikely to rise at a rate that would cause inflation in the economy. Financial Mail on Sunday, 14 March.


Human meat market

Egypt’s prosecutor-general has launched an investigation into claims that 25 children were killed at a shelter for the homeless over a three-month period and their body parts sold to wealthy transplant patients in private hospitals . . . The children, many of them illegitimate, had been abandoned and left to fend for themselves on the streets . . . Both Egypt’s Muslims and Christians frown upon sex outside marriage and newspapers are full of stories of relatives killing women they suspect of being sexually active. Unmarried mothers are often forced to abandon their children out of fear and shame. Guardian, 18 March.  


Couldn’t cope

June Randall, a 25-year-old mother described as “distraught”, went on the run this week after snatching her three children as she visited them. The youngsters, all under six, were living in two foster homes after Miss Randall disappeared for a while last December when the children were living with her. She is thought to have said that she couldn’t cope. She is separated from the children’s father and has abandoned her home. Evening Mail, 26 March.


Expand or bust

Early one morning last week at a City livery hall senior executives from leading multinationals—IBM, British Telecom, Levis and Kodak among them—met to mull over problems they all face in doing business in the 21st century, including how to influence governments. Sinister? Only if you believe the sole purpose of business is to make profits. Here was an intriguing sign of the times. The topic before this group, convened by BT, came from a publication in which chairman, Sir Ian Vallance, proclaimed: “The pursuit of sustainable development is not an option—it is nothing more or less than a necessity for our economic survival.” Guardian, 18 March.


The filthy rich

It was 10 years ago that the Exxon Valdez oil tanker hit rocks in Prince William Sound, Alaska, spilling 11 million gallons of oil into pristine waters and devastating wildlife and the local economy . . . only two out of 28 injured species have recovered. Numbers of many species, including killer whales, are still declining. And commercial fishermen are still earning less than in 1989. Things look rosier in the head office of the company responsible for the disaster, Exxon (which trades as Esso in Europe). Last year, the company made more money than any other global corporation–$8.5 bn . . . Exxon can afford to clean up its act, but it chooses not to. A similar disaster could occur at any time. And Exxon is one of the most aggressive lobbyists against effort to cut greenhouse gas emissions and slow climate change. In fact, Esso’s bosses find it convenient to believe that global warming is not taking place, against the views of the vast majority of scientists. Exxon was behind plans, exposed in 1998, for a $6m PR campaign to undermine climate science . . . Esso’s parent company is still shipping oil in the outdated, single-hulled tankers and in the old, leaking Trans-Alaska Pipeline. In the seas between Russian and Japan it is discharging toxic wastes into the sea etc, etc. [The accompanying photograph is of the Exxon Valdez, now refurbished and renamed Sea River Mediterranean, taking on crude oil at Hound Point, South Queensferry.] Glasgow Herald, 24 March.

Tuesday, May 11, 2021

Ecology: the first decade (1971)

From the June 1971 issue of the Socialist Standard

Ten years ago, anyone who spoke of the “balance of nature,” or claimed that our food was being poisoned on a mass scale, would have been classed along with nudists, vegetarians and socialists. Such talk identified the crank and the weirdo. As for ecology, few could even spell it.

Today fad has become orthodoxy. The language of the crank has become the language of the Pope, the Prince of Wales and President Nixon. Every school child knows the meaning of ecology.

Now we have Doomwatch, the biologist’s Dixon of Dock Green. We have advertisements based on ecological appeal, like the one for Natural Gas. Establishment magazines like Time and Reader’s Digest incessantly remind us of the threats to our natural environment.

In 1960 a book introducing ecology to sixth-formers stated that
  opportunities for full-time employment of ecologists in Britain are few and far between . . . There are neither many jobs nor many people competent to fill them. (John Hillaby, Nature and Man).
Today we take the population explosion of full-time ecologists for granted — and we are not surprised at the rise of environmental consultants, environmental lawyers — even environmental bankers. Within one decade a revolution in ideas has occurred. And this is only the beginning.

In 1962, just after the Thalidomide affair, Rachel Carson’s Silent Spring was published, to become an instant best-seller. This far-sighted work, studiously factual yet excitingly written, was an investigation of the ways in which weed — and pest-killers were poisoning wildlife, human beings and the system of nature in general. Rachel Carson showed that
  Every human being is now subjected to contact with dangerous chemicals, from the moment of conception until death.
And she demanded:
  Why should we tolerate a diet of weak poisons, a home in insipid surroundings, a circle of acquaintances who are not quite our enemies, the noise of motors with just enough relief to prevent insanity? Who would want to live in a world which is just not quite fatal?
Apparently the answer to that question was: any capitalist who can make a quick profit out of this murderous system. The chemical firms spent a great deal of money spreading lies about the effects of their products, [1] and trying to discredit Rachel Carson as a mystical dreamer out of touch with reality. One such firm wrote to Silent Spring's publishers asking them to withdraw the book, and implying that those who thought like Rachel Carson were in the pay of the Russian government, who thereby hoped to strike at the West’s food supply.

Time magazine and Reader's Digest carried bitter attacks on Silent Spring. An outburst typical of “responsible people’ ’at that time was the following, from the Director of the New Jersey Department of Agriculture:
  In any large-scale pest-control programme we are immediately confronted with the objection of a vociferous, misinformed group of nature-balancing, organic-gardening, bird-loving, unreasonable citizenry that has not been convinced of the important place of agricultural chemicals in our economy.
But these chemicals also had an important, though less benign, place in the ecology as Silent Spring made clear to millions. Most pesticides, in sufficient amounts, kill anything that lives, and not just the pest aimed at. Many of these chemicals are persistent, that is, once added to the natural system they remain there in poisonous form. All the plants, animals, soil and water, in every part of the world, contain steadily increasing amounts of these poisonous substances. Penguins and seals in the Antarctic, thousands of miles from the nearest spraying, contain DDT and numerous other poisons.

Animals which consume these substances do not pass them out of their bodies as quickly as they take them in, but rather accumulate the poisons in increasing quantities. If these animals are eaten by predators, the predators are getting a highly concentrated dosage, which they concentrate further. They may be eaten in their turn, and thus the chemical intensifies as it moves up the food chain. In this way, very tiny concentrations of pesticide may wreak havoc with the neutral system. At Clear Lake, California, DDT was sprayed in concentrations of one part in 70 millions. It was absorbed by plankton, which were eaten by fish, which were eaten by bigger fish, which were eaten by grebes. By this time concentrations were up to 2,500 parts per million. The grebes died.

Those creatures at the tops of food chains are therefore most vulnerable. Man is at the top of many food chains. In more and more parts of the world, men’s flesh would be poisonous to eat, and mother’s milk is poisonous to their children.

Paradoxically, the use of chemical killers against a particular pest often destroys that pest’s natural enemies, whilst the intended victim may develop a resistant strain. This leads to a renewed plague of the pests —and the use of new and deadlier poisons. Two or more chemicals added to the environment at different times and in different places may meet in the soil or the waterways, and combine to produce a new substance more deadly than either of them. Nature is a delicate, intricate system, and apparently slight intervention in this system may have dramatic consequences. [2]

No Socialist, Rachel Carson nevertheless could clearly see that the system of production for profit was the major cause of pesticidal pollution, firstly, because chemicals were used to increase the productivity of agriculture regardless of their wider consequences, and secondly, because the companies producing agricultural chemicals constituted a great vested interest. In many cases, alternative, non-chemical means of pest-control were more effective and cheaper, yet precisely because these methods were so simple, there were no great profits to be had from marketing them, and therefore nobody with an interest in selling them to farmers.* [3]

Scientists working on pest control were directly or indirectly in the pay of the chemical companies. These companies have not hesitated to proclaim that the world's food supply depends upon their products, and that people who object to being poisoned by them are responsible for world hunger. As recently as 1967, an employee of the Velsicol Chemical Corporation wrote:
  the campaign of false fear against the use of modern pesticides has, is, and will cause deaths and sufferings greater than those of World War II. It has been over 12 years since a major new insecticide has been brought to market and this is due to unnecessary controversy . . . daily deaths due to starvation and malnutrition have risen from 6,000-7,000 per day to over 12,000 per day, not to mention the millions who have died from vector-borne diseases . . . Each person who has played a part in the campaign of fear must accept responsibility for his share of the unnecessary toll of human life.
Rachel Carson had scotched that one merely by pointing out that agriculture’s chief headache was the problem of burdensome surpluses, though she didn’t go further and explain how a surplus problem could co-exist with a starvation problem. In fact, the world can grow plenty of food for everyone, with or without pesticides. Where people starve, it is not because the food cannot be grown, but because they are too poor to pay for it.

As public opinion swung round on pesticides, other forms of pollution began to hit the headlines. Some, like smog and nuclear fallout, were already issues. Gradually, more and more people linked the variety of pollutions together, and began to see a single problem. Ecologists became sought after and listened to. The Environment was a hot political topic. Firms which had been arrogant and sarcastic looked to their public relations and began to talk about their “responsibilities”. An avalanche of anti-pollution legislation descended from government. As the western economy moved into recession, one branch of industry was expanding as never before: anti-pollution equipment.

The tone of this editorial from Fortune (February 1970), the American business magazine, would have been utterly unthinkable two or three years earlier:
  Looked at one by one, many of our present depredations seem relatively easy to correct. But when we put the horrors in a row — the drab and clumsy cities, the billboards, the scum-choked lakes, the noise, the poisoned air and water, the clogged highways, the mountainous and reeking dumps — their cumulative effect drives us toward the conclusion that some single deep-seated flaw in modern society is responsible for all of these.

  . . . Because our strength is derived from the fragmented mode of our knowledge and our action, we are relatively helpless when we try to deal intelligently with such unities as a city, an estuary’s ecology, or “the quality of life.”
The Environmental outcry, which has yet to reach its height, is fully justified by the horrible facts. It is not a volatile craze which will disappear next year — or next century.

In some American cities tap water is undrinkable; drinking water must be bought in bottles. [4] In Tokyo, the world’s largest city, air pollution has got so bad that oxygen-vending machines have been installed in the streets. [5] Annual property damage from air pollution in the United States is estimated at $12 billion (thousand million). Millions of tons of oil are released into the oceans every year, and the Sargasso Sea now contains a permanent oil slick covering several hundred square miles.

While scientists calculate precisely the increased number of monsters and idiots born because of radioactive fallout, nerve gas and nuclear wastes are dumped in the Atlantic. The lands and seas are cluttered with plastic containers which will not be broken down — no, literally not in a million years. And everywhere swarms capitalism’s iron rat, the petrol-combustion motor-car, always bringing with it death, injury, sickness and frustration on a colossal scale.

Latest pollutants to make the news are PCBS and metals. [6] PCBS (polychlorinated biphenyls), used in the making of paints, varnishes, adhesives and lubricants, can now be found throughout the world’s natural system, including human mother’s milk, already rich in such succulents as DDT and its relatives. Implicated in the destruction of wild birds, PCBS are helping the peregrine and golden eagle along the road to extinction. The effects on humans are not yet known, PCBS are persistent.

Among serious metal pollutants are lead, mercury, cadmium, beryllium, nickel and vanadium. Lead enters the ecology mainly from its use as an anti-knock additive in petrol. It is suspected of inhibiting enzyme action, thus damaging the brain, liver and red blood corpuscles. Beryllium is emitted by processing plants, and like nickel, which is used as a fuel additive and in metallurgy, it damages the lungs. Cadmium, picked up from galvanized water pipes, causes high blood pressure and kidney damage. Mercury, used in the production of paint and drugs, keeps turning up in fish. It is especially toxic to the brain.

Pollution is not just caused by “technology”, and a return to the “simple life” is no answer (though less passionate worship of "progress” might help). The high rate of technical innovation itself provides cures for its own disease, DDT, dieldrin, aldrin, heptachlor, and other dangerous substances can be totally discarded, and replaced with chemicals which are more specific, or which break down more quickly. Non-chemical methods of pest control can be developed also. Factory chimneys and drains can be fitted with filters. “Biodegradable” plastics can be developed. Sewage can be treated, and could be a useful source of fertilizer. [7] Industrial processes can all be modified if necessary. No technique of production is indispensable. There is a substitute for anything, or there soon can be if research resources are channelled in the appropriate direction. Something can be done about pollution, and of course something is to some extent being done, and the reasons for its slowness and indecisiveness are economic, not technical.

Although European Conservation Year was justly described by some sceptics as “European Conversation Year,” and similar jibes can easily be made at other environmental projects, it would be a gross error to suppose that capitalism is doing nothing about the problem. It is true that the picture has now become more confused with the growth of a general awareness of ecology, so that corporations which formerly flaunted their disdain for nature can now be relied upon to treat the environment as a sensitive public relations zone. Underneath the propaganda, however, progress really is being made, two obvious cases in Britain being the comparative success of the Clean Air Act, and the great improvement in the condition of the Thames. Norway’s biggest industrial combine recently closed, and wrote off as a total loss, a £6 million plant, because the firm could not bear the additional costs of anti-pollution measures (Guardian, 30 April). All over the world, pollution control costs are rising steeply as a proportion of capital investment. It would be equally mistaken to suppose that only the polluters are propelled by profit, those who wish to restrain them being disinterested guardians of the public welfare.

Sometimes the actions of governments are motivated by the crudest short-term financial considerations. The British Government responded to the Torrey Canyon menace by pouring millions of gallons of poisonous detergent into the sea. Ecologically, this was a disaster many times greater than the oil slick, but the holiday trade of seaside resorts was the determining factor. “The tourists were worth £40 million a year and the lobsters were worth £2 million a year,” said the man from Whitehall. “So we killed the lobsters.” (quoted in Richard Pefrow, The Black Tide)

But capitalism’s powers-that-be are capable of a broader approach than this. Cigarette smoking, for example, provides profits for the tobacco firms and tax revenues for the state, yet intelligent administrators of capitalism can readily see that they lose out, because of the illness and death caused by cigarettes, which lower the productivity of the working-class, and thereby cut the rate of return on investments in labour-power (the Health Service, schools and universities, etc).

It is the same with pollution. Short-sighted people often talk as though the choice for capitalism was concern for the environment or economic growth, but the truth is that in the long run a lack of concern for the environment will cut growth by lowering the quality of human labour-power, the source of growth. Poisoned workers are not so profitable to employ. Nations like Japan and Italy, which currently foul their environments more than most, will pay for it.

Furthermore, though government pollution-control laws raise the costs of production, firms do not necessarily mind their costs rising—so long as their competitors are in the same boat. Most leading American managers were found to be in favour of tougher pollution restrictions, and one of them explained:
  If I correct my plant problems but my competitor doesn’t, that company has a competitive advantage. I have committed huge sums; they haven't. In fairness to my stockholders, therefore, I can’t make that first move. (Fortune, February 1970).
This is a familiar pattern. Such laws will be particularly favoured (perhaps after initial howls of protest, as with the pesticide producers) by big firms in industries where competition from smaller firms persists. Anything which raises costs all round help to eliminate the small fry and redound to the benefit of the large concerns. Historically, much factory legislation was supported by large companies for this reason, and such a situation can even result in these firms favouring a general rise in wages.

The established firm may also regard its reputation as an asset, and in conditions of growing agitation over a particular evil, like pollution, such a firm may have to choose between soiling its reputation or handing a competitive advantage to a less reputable rival. Here again, the firm will welcome state direction.

A company with a near-monopoly position in regard to particular products will have a somewhat different outlook. With the competitive pressures off, the natural distaste for state interference will reassert itself. The firm will tend to anticipate possible government intervention, and act preemptively, in order to preserve as much room for manoeuvre as possible. Thus, Monsanto Chemicals, the sole North American and British manufacturers of PCBS, recently stopped selling these, voluntarily, except for uses which are unlikely to leak into the environment. By doing this, they hope to avoid a total ban, and incidentally a pollution scandal which might embarrass them now they are moving into the field of anti-pollution technology. Their spokesman said of pollution:
   I don’t think it’s a scare which will go away . . . We want to be masters of our own fate, rather than to be swept overboard on a wave of political emotion.
To say that most big capitalists welcome anti-pollution restrictions, does not prevent their still having an incentive to bend or break these laws. ‘‘Nader’s Raiders” in the United States uncovered case after case of government agencies becoming corrupted by the interests thety were supposed to regulate. And outright wilful contravention of the law is not uncommon—though, as in the case of offshore oil-drillers who omit to instal expensive safety valves, this may not come to light until disaster strikes

The pollution problem is just as bad in Russia, and this is often used to argue that the profit-incentive has nothing to do with it. But this misses the point. The manager of a western company is subject to pressures which ignore the general welfare of the population: he is therefore likely to be faced with a situation where to keep costs down he must pollute. His employers judge his performance by profits, not by charitable acts. The manager of a Russian state enterprise is in an identical position, only in addition to making a profit he must also fulfil a production target decided in an office in Moscow. This is just an extra pressure, and with its production-at-all-costs emphasis, is hardly likely to deter him from polluting. Commenting on the Russian pollution crisis, Izvestia complained that the manager’s attitude was: “We deliver the goods, and the rest is of no importance.” (Economist, September, 1970)

There are two general tendencies in capitalism’s response to pollution: increase in the power of central government, and further (administrative) unification of the world. Pollution is not bounded by frontiers. Biologically, there is only one world. The Germans ruined the Rhine for the Dutch as well as themselves. The Swedish government is cracking down hard on pollution—but a great deal of poison descends on Sweden after floating across from Britain or America. The insecticide BHC is widely used in Russia, but little in America or Britain: its presence in British rainfall is presumed to be due to its having floated round the world, across America and the Atlantic. Pollution is one more world problem, which, it is evident to everyone, can only be solved on a world scale.

Why does pollution occur? A small amount is due to ignorance or miscalculation. A small amount is unavoidable given present technology and population. But the immense majority is due to the economic network. People pollute because it is in their economic interests to do so.

It is sometimes claimed, though, that the problem arises from a wrong attitude to nature. This has some truth, though it will not do as a complete explanation. The attitude to nature, and the economic system, are interlinked. The present growth of ecological awareness is full of hope, for it encourages a mentality which considers total processes rather than isolated fragments. The vast majority of specialised scientists did nothing to warn us of the menace to our environment, and when people like Rachel Carson raised the alarm, many of the “experts” were more horrified at this usurping of their oracular role than at the gravity of the crisis. In the pesticide controversy, as in the earlier fallout controversy, the authorities were wrong and the “faddists” right. You cannot trust the powers that be.
Steele.

[1] Documented in Since Silent Spring by Frank Graham jr, from which is also taken some of the other information cited here.
[2] Robert L. Rudd’s Pesticides and the Living Landscape is now a standard work on the subject. It was actually written before Silent Spring, but turned down by publishers as a “polemic.” As a result of having written this book. Rudd lost a promotion, and almost his job, at an American University, and was sacked from a state agricultural experimental station.
[3] Biological methods of control, such as introducing specific organisms which attack the pest and keep its numbers down.
[4] Barry Commoner, Science & Survival, p. 16.
[5] Economist, 5 September, 1970.
[6] The Ecologist, January 1971; Fortune, January 1971; “Trace Elements” in The Ecologist, May 1971.
[7] “Excretions of consumption are of the greatest importance for agriculture. So far as their utilisation is concerned, there is an enormous waste of them in the capitalist economy. In London, for instance, they find no better use for the excretion of four and a half million human beings than to contaminate the Thames with it at heavy expense.” K. Marx, Capital, Vol. Ill, Ch 5.

Tuesday, April 21, 2020

Sting in the Tail: Accident? What accident? (1996)

The Sting in the Tail column from the April 1996 issue of the Socialist Standard

Accident? What accident?

When the oil tanker Sea Empress ran aground and spewed about half its 150,000 tonnes of crude oil, we didn’t view it as an “accident”. This sort of thing is inevitable inside capitalism.

For 10 days tugs toiled in vain as a 100-mile oil slick polluted the Welsh coast. The Government has promised an enquiry as environmentalists talk about the loss of wildlife, the marine food-chain, despoiled beaches and fishing ruined for years to come.
  “They are cynical about the Government's forthcoming report on the catastrophe, conscious that some key recommendations of the independent Donaldson report—commissioned after the Braer disaster—have been deliberately ignored. Crucial among the omissions was a Government decision not to station a giant salvage tug on the Western Approaches ” (Observer, 25 February).

Funny old game

It is a sad, wet afternoon in Coketown. In the bar they are showing a re-run of yesterday’s game. The City are playing United. Two groups of workers are sitting at opposite sides of the bar. They are throwing insults, slogans and empty-headed songs at each other.

A well-dressed gent enters the bar with a notebook in his hand. He says “Two days’ work for two joiners, a glazier and a spark. Who is available?”

Football is forgotten. Sunday afternoon pretence is dropped as they crawl to the man in the nice suit. He signs up two City and two United fans. The others retreat into their corners. In subdued voice, they vainly try to regain their former show of arrogance. The man with the notebook goes into the lounge for his double brandy.

Football may be a funny old game but capitalism is a tragic, ball-breaking society.


The hypocrisy game

Politicians, priests and pundits are all concerned at present about selling arms to dictators. What hypocrisy!

Capitalism is based on exploitation, selling commodities and realising as big a profit as possible. There is no other way of running the system.

“The Business”, the financial section of the Observer (18 February), got it right when it stated “The recommendation that parliament scrutinise arms exporters is a pious hope for a murky industry.”

The Observer added:
  “Digby Walker, defence economist at the International Institute for Strategic Studies in London, estimates world military expenditure totalled S800 billion (£500 billion) or 2.6 percent of economic output in 1994."
We are talking big bucks here and no British government is going to restrict British arms exporters (now reckoned to be the second or third biggest in the world) from getting on the gravy train.

The dead, maimed and blinded workers can expect no mercy from that quarter.


Flights of fancy

Colin Welland is a lad of many parts. Actor and screen writer, he also writes a weekly column in the Observer on Rugby League football. On 18 February he waxed so lyrical on the Salford defeat of Wigan that he even became a social anthropologist!
  “If theatre is the mirror of life, sport is its metaphor. In team combat sports in particular we play out of our system all that tribal aggression which, like it or not, is our birthright, testing our resolution, valour, our fleetness of foot and our flights of fantasy. ”
There is no such thing as inborn tribal aggression. Indeed all the evidence seems to point to the history of early humanity being based on co-operation rather than aggression. Colin Welland would be better restricting his “flights of fantasy” to reporting rugby.


The good old days

The present leader of the Russian Communist Party, Gennady Zyuganov, is tipped to be a front-runner in the Russian presidential election.

In a two-day conference in Davos for foreign businessmen he harked back to the good old days of the USSR and promised future investors a safe haven for their investments:
  “I have known times when all debts were paid on time and no foreign investors wondered whether they were going to be paid. We intend to create conditions in which confidence can flourish." (Guardian, 5 February).
Whether Yeltsin, Zyuganov, or some other job-hunting politician wins the day the Russian working class can be assured it will be business as usual.


The human zoo

The Tory Government, claiming to be the party of law and order, and keen to appear to be doing something about crime, have had a new prison for women built near Bristol. To save money the 80 cells measure six foot square and are to accommodate prisoners for 14 hours a day.

Women’s crime is seen as a growing threat to society by the Government, although according to the Observer (25 February):
  “The 2,150 female prison population has risen by 40 percent in two years, but a third of the women are in jail for defaulting on fines or non-payment of television licences."
These licence-dodging desperadoes are to be put in cells that are unsuitable for animals in a zoo, according to Jeremy Mallinson, director of Jersey Zoo:
  “There is no way I would countenance shutting up a gorilla, a chimp or an orang-utan in conditions such as these. It would not be allowed in any professional zoo."

Saturday, September 28, 2019

Another Sea Disaster (2012)

Rena aground
From the June 2012 issue of the Socialist Standard

The MV Rena ran aground on Astrolabe Reef off Tauranga in the Bay of Plenty, North Island, New Zealand on 5 October last year, spilling fuel oil and containers into the sea. The Rena is a Liberian-flagged, Greek-owned Flag of Convenience (FOC) vessel. The crew consisted of 23 Filipinos.

Not surprisingly, the grounding of the Rena, and subsequent oil spill, has caused outrage and concern, and has been reported worldwide. The ship disintegrates on the Reef. According to Joe Fleetwood, general secretary of the Maritime Union of New Zealand, writing in The Maritimes (Issue 36, Summer 2011/12), many in New Zealand are confused as to how the disaster happened, and who was responsible. People have a right to know, he said.

Flag of Convenience
The Maritime Union blames the New Zealand government and authorities as much as individual crew members. The authorities have created a situation where FOC shipping has been encouraged. Their “open coast” policy has meant that “unacceptable practices have become the norm in New Zealand waters”.

Many in New Zealand were shocked to discover that the FOC system operates on the New Zealand coast. They should not have been. In many of these FOC states such as Liberia, there are few regulations. Says Joe Fleetwood: “This is deregulation operating in a globalized market, with no oversight, no responsibility and no morality.” Quite. He continues:
 “Flag of Convenience ships are notorious for their exploitation of crews, and safety risks. They endanger our environment and port security, and are a threat to the future of New Zealand maritime industry… It is a cheap way of doing things. But as we all know, doing things on the cheap has a funny way of ending up being more expensive in the long run.”
Legacy of Neglect
Was the Rena faulty? Apparently, prior to its arrival in New Zealand, it had been hauled up in China and Australia for numerous issues and multiple problems.

Was a full inspection by Maritime New Zealand made given numerous documented failings? According to the union, a Maritime New Zealand “inspection” consisted of asking the Master of the Rena if the previous problems had been fixed. Presumably, he said they had. So that was OK then! Following the disaster, the Master was arrested. He was blamed two weeks after the grounding and spillage; a convenient scapegoat.

According to The Maritime, a TV3 News investigation noted that the government was repeatedly warned that New Zealand wasn’t prepared sufficiently for such an oil spill. An Official Information Act indicated that the New Zealand government had considered whether a specialist oil response vessel was needed. But it decided against. It had, it said, such vessels as “The Awanvia”, with suitable equipment which it could seek for assistance. In the event, however, it was almost five days before it arrived on site and began pumping fuel off the Rena.

Union Criticism
Not surprisingly, the New Zealand Maritime Union is highly critical. General Secretary, Joe Fleetwood complains that workers are under threat because of lack of proper regulations and enforcement in the industry. Workers are expendable. Both local and overseas workers are being harmed in the workplace because of slack regulations. And, it is worse on FOC vessels.

Says the union:
  “The incidents on Flag of Convenience vessels, including foreign charter vessels in the New Zealand fishing industry, make for a long and grim list. Sinkings, drownings, asphyxiations, severe injuries, physical attacks, underpayment, pollution and overfishing, abuse and exploitation are all documented throughout the maritime industry. For years the problem has been out of sight and out of mind.”
And not just in New Zealand, I would add. Indeed, complacent politicians come and go, and “profits kept flowing to the shipping corporations”. Fleetwood observes that in the current environment, profit comes first. “Unless we have strong unions on the job to defend health and safety, and legislation that is backed by some teeth, then we will see more and more preventable deaths and injuries.” Too true. But, unfortunately, legislation and reform measures, even if acted upon, will not solve the problems. Only the abolition of the cause – capitalism and the profit motive system – will do that.  This is what the World Socialist Party of New Zealand, and socialists elsewhere, propose and for which they are organised.
Peter E. Newell

Sunday, November 19, 2017

European pollution year (1970)

From the March 1970 issue of the Socialist Standard

During this last decade there has been a growing interest in the problem of pollution. In all industrial countries rivers arc being polluted to an alarming extent with waste from factories. Detergents are everywhere used and these substances cannot be easily removed from water, so our drinking water supply is being depleted. In America some scientists have proclaimed that in ten years time at the present rate of pollution, the U.S. will have to bottle drinking water to conserve its water supply.

Lakes are being polluted with factory waste and with chemical insecticides washed off the land by rain, or dropped into the lakes by spraying aeroplanes. Lake Erie in America has now become so polluted that fish cannot live in it, and today it is a gigantic sewer.

Pollution of air from petrol and diesel fumes is already a big problem, and Los Angeles (once a health resort) is now one of the worst affected towns in the world. Petrol and diesel fumes are a known cause of lung cancer and respiratory diseases.

The insecticide DDT has been banned in many countries, and is so widespread that it has been found in the bodies of penguins in the Antarctica and animals in the Arctic. Practically every human being stores this nerve poison in the fat tissues of the body.

Stocks of war gases are a potential menace as these terrible poisons could kill thousands of people in peace time, by their accidental release into drains and rivers.

Residues of radio active fall-out from nuclear tests, and the waste products of atomic factories, are a constant and insidious danger to mankind. Buried atomic material has escaped from its lead containers in the sea and poisoned fish; it remains active, with unpredictable possibilities.

Pollution of the sea with oil from ships discharging their waste, and the much bigger hazard of oil ships meeting disasters, such as the case of the Torrey Canyon, pouring tens of thousands of tons of oil into the sea, are a constant menace. Fish, sea birds, plankton, and other wild life upon which fish live must depend—and thus our food—are all adversely affected. Added to this is the contamination of the beaches with oil and the spoiling of holidays.

Chemicals used in food manufacture have increased enormously. The food trade employs more chemists than any other industry, and about 1,000 different chemicals are regularly used in food processing. Flavouring essences, colouring matter, preservatives, anti-staling agenus and anti-oxidants are used more now than ever before, and the nutritional value of all our foods is decreasing as a direct result.

Food is not produced because people need it. There are plenty of hungry people in Asia and Africa but nobody is going to produce food for them unless they can buy it. Food is produced for profit—“no profit, then no food” is the rule of the farmer, the miller, the baker, the grocer and every food vendor. So long as food is produced for profit then just so long will food be faked and adulterated and falsified by advertisements to increase profits.

So long as it is cheaper to dump factory waste into rivers then so long will it be done.

Politicians and other authorities cannot rid the world of pollution because it means getting rid of the profit motive in society, which they are committed to maintaining. Up to now they have only spread confusion in this field (as in every field). No amount of legislation and amendments to Acts on pollution, or food making, or banning certain drugs, would put this matter right. As soon as one drug is banned because of its side effects, there are a dozen more ready to take its place. And so it is with detergents, insecticides and all the rest.

The many conferences to deal with pollution that have been planned this year (which is officially Conservation Year) are bound to fail in the same way as the disarmament conferences failed, and because of the same reason. The prime cause of pollution is capitalism itself, for capitalism cannot function without polluting the world. No doubt efforts will be made to stem the tide, but capitalism is bound to fail to conquer this problem for it is capitalism itself that is creating it. 
Horace Jarvis

Sunday, October 10, 2010

The Gulf Oil Spill

Cross-posted from the Imagine Magazine blog

At the time of writing, the ruptured pipe has been capped, for now, after 85 days of spewing oil into the Gulf of Mexico. Although estimates have varied wildly, BP originally claimed ‘almost nothing has escaped’ (Toronto Star, 13/06/2010), it is now estimated that the total is around seven hundred million litres, or seventeen times the Exxon Valdez spill in Prince William Sound, Alaska. It is the biggest oil disaster ever and could get worse as it is not clear how much stress the cap can take before blowing again, and relief wells needed to complete the job have yet to be finished.

In addition, Hugh Kaufman, of the Environmental Protection Agency, criticizes BP for its use of the dispersant, Corexit, and describes it as ‘the Agent Orange of the Gulf’ (Toronto Star, 17/07/2010). Seven million litres of the dispersant have transformed the oil into droplets that cannot be burned or skimmed, and thus will impact the environment for many years to come. The use of Corexit, Kaufman says, is short term gain for long term pain. Friends of the Earth’s count so far of the dead is 1 387 sea birds, 444 sea turtles, and 53 mammals.

The Exxon Valdez spill accounted for 36 000 dead birds, but the Gulf spill may have more economic impact given the amount of sea-based industry on that coast and longer lasting environmental effects because whereas Alaska has a rocky shoreline that does not absorb oil easily, the Gulf coast of sand and sediment will act like a sponge.

The spill is causing widespread failure in an already weak ecosystem. In this sense, the current spill could be more accurately compared to the 1979 Ixtoc spill of 450 million litres, 1 000 kilometres off the coast of Texas that took one month to reach the coast there.

British Petroleum Inc. is the world’s third largest energy company with 2009 revenues of $246 billion. In 2 000 it re-branded itself as the industry’s most sensitive company with an ad campaign of $200 million entitled ‘Beyond Petroleum’, sporting a new green logo similar to that of our Green Party. It committed to alternative energy systems and did succeed in reducing its CO2 emissions by ten per cent and becoming the third largest maker of solar panels. Yet its revenues continued to come ninety per cent from oil, and its record tells a very different story from its new brand.

In 2001, BP was forced to pay a $10 million penalty and spend $500 million in upgrades for violating federal clean air laws at eight US refineries; In 2005, a Texas refinery explosion killed fifteen workers and the company was penalized $87 million by the US Occupational Safety and Health Administration, the biggest fine in the agency’s history; In 2006, BP’s Alaska operations were found to have leaked one million litres of crude oil from eroded pipelines and was forced to replace twenty-six kilometers of pipeline; In April 2010, the Deepwater Horizon oil rig exploded and sank killing eleven workers, due to the failure of a blow-out-protector to activate. BP’s initial response was to downplay the damage, to refuse to let scientists have access to the site to determine the flow from the well, and reporters from informing the public, and to blame the Swiss-based company from which BP leased the equipment. CEO Hayward said, “This was not our accident’ (Toronto Star, 13/06/2010). BP did act quickly to buy top Google and Yahoo! search results so that the first result for phrases such as ‘oil spill’ would yield ‘Learn more about how BP is helping’.
The above is not just a list of deadly accidents, but more a result of planned cost cutting. Former CEO John Browne (who became Lord Browne of Madingley) balked at the choice between economic growth and more careful environmental stewardship, contrary to its own advertising campaign. He stated, “If you say to people, ‘Do you want to develop the world and have a good living standard, or do you want a safer environment?’ people are terrified by the choice” (Toronto Star, 9/05/2010).

Under Browne’s term in office, an expense-paring regime figured prominently in maintenance reductions that allowed the Alaskan pipeline erosions and lax safety standards that contributed to the Texas explosion. His successor, Tony Hayward, continued with the cost cutting by slashing $4 billion from operating costs which, obviously, impacted safety even further. Internal documents show that BP itself had concerns before the blow-out occurred. In March, 2010, after several weeks of problems on the rig, BP was struggling with a loss of well control and in June 2009, company engineers had warned that the metal well casing might collapse under pressures at that depth, and concluded that the cement job to seal the pipe was unlikely to be successful. (Ina Urbina of the New York Times, reported in the Toronto Star, 30/05/2010). In other words, BP officials knew the casing violated its own safety standards. The blow-out preventer that was supposed to slice through the pipe and cut off the oil flow, failed. It had never been tested at that depth. In fact, BP’s performance has been so bad that confidence in the company has plunged and investment in the company is considered dead money as stocks have been stagnant since 2000 which compares badly with Conoco Phillips (up 145% in the same time), Chevron (78%), and Exxon Mobil (71%).

What are governments doing to protect the environment and ensure the safety of the workers? The answer is plenty, for the capitalist class, that is. The World Socialist Movement holds that the modern nation state, with clearly defined and defended borders, with a strong central government backed by well equipped armies and police forces, and a legal system that is their own creation, are crucial to the operation of the capitalist mode of production.

Government is the executive arm of the capitalist system and forms the basis of capitalism with the enactment of private property laws. It is its job to maintain and revise those laws to ensure the private ownership of the means creating and distributing wealth in the interests of the owning capitalist class. The government’s collaboration with the capitalist enterprises encompasses protection of the latter’s national and international rights to operate as freely as possible through diplomacy, bribes, and even war, if necessary, and create a not-so-level playing field of economic activity, tipped, naturally, in favour of their capitalists. Sure, they are elected every few years in a quasi-democratic exercise where the largest voting block is usually the ‘did not vote’ group, but we have no choice in that the major parties with the money, organization, and clout to get elected, all vie to run capitalism in the interests of the capitalists. The Gulf oil spill provides several insights into this process of governmental collaboration.

Thomas Walkom (Toronto Star, 29/05/2010) writes that the American regulation of the offshore oil industry has been revealed to be a sham. After all that has come out regarding BP’s record, they are still in charge and have used their authority to refuse access to scientists and reporters to the site to determine and report on the magnitude of the oil spill, as noted above.

Canada’s regulations for drilling in the harsher arctic conditions are even weaker. Paul Martin’s Liberal government relaxed the rules for arctic drilling and the current Harper Conservative government has eased the rules even further. The Newfoundland government strongly supports Chevron’s drilling in the stormy Orphan Basin, 450 kilometres into the North Atlantic where a spill would be impossible to contain. Tax revenues for the province and profits for the investors must take preference over any environmental considerations. Even the Nunavut government, dominated by the supposedly eco-friendly Inuit, supports seismic testing in the Eastern Arctic. The BP oil spill has revealed the immense clout of the large economic sectors and enterprises.
Obama’s moratorium on arctic oil exploration is due to be lifted next year. Despite the hopes of Marcie Keever, spokesperson for Friends of the Earth, that this latest oil spill will trigger a public demand for an end to the era where the oil industry writes its own regulations, and will spawn a sea change in the need to get off fossil fuels altogether, the US climate bill now passing through Congress gets weakened every day with amendments, and will do little to fulfill Keever’s hopes. Some Non-Governmental Organizations estimate that Nigeria has suffered oil spills equivalent to the Exxon Valdez every year since 1969 but a compliant and corrupt government has done nothing to solve the problem over four decades (Toronto Star, 06/06/2010)

At the present time, companies operating in US territory risk a maximum fine of $75 million for oil spills which would equal less than two days’ profit for BP. The oil industry is only following a pattern that is discernable in all major sectors of the economy – pharmaceutical, food, mining, tobacco, etc. Their financial clout is used to support donations to politicians’ election funds, to produce mass propaganda to sway public opinion, to fund thousands of lobbyists whose job it is to remind politicians of their loyalties, and to refute scientific evidence that is detrimental to their industry. The top civil service jobs, particularly in the industrial regulatory bodies, and those of top executives in an economic sector are frequently swapped back and forth, creating an old boys’ club whose members inhabit the same social circles creating a smooth ride around government rules and regulations.

Many left wing and one-issue groups complain that this state of affairs came about with globalization and ascendancy of greedy multi-national corporations. To socialists, this state of affairs is simply the normal operation of the capitalist system. It has been going on since philanthropists and governments tried to alleviate the appalling conditions in factories and mines in the early nineteenth century.

In 1865, Marx wrote, concerning the attempts of the factory acts of the time to introduce safety legislation to stem the large number of industrial deaths and accidents,

“The factory owners of the time formed a “trade union” to resist the factory legislation, the so-called ‘National Association for the Amendment of Factory Laws’, based in Manchester, which collected a sum of 50 000 pounds in March 1855…to meet the legal costs of members prosecuted by the factory inspectors and conduct their cases on behalf of the Association…The factory owners promptly formed their Association, its most prominent members including many who themselves were J.P.s, (Justices of the Peace) and in this capacity had actually to apply the act…The head of the Factory Inspectorate, Leonard Horner, was persecuted and slandered by the factory-owners in every conceivable way.” (Capital, Vol. III, pp184/185, Penguin classics edition).

Rather than this type of evasion of spending for safety and environmental concerns being a modern phenomenon of globalization, then, it is, and has always been, a feature of the operation of the capitalist mode of production. It will remain so until the profit system is replaced with a common ownership system of production for use, i.e. socialism.

(This article originally appeared in the Fall 2010 issue of 'Imagine', the official journal of the Socialist Party of Canada.)

Saturday, June 19, 2010

Pathfinders: Blow-out (2010)

The Pathfinders column from the June 2010 issue of the Socialist Standard

The deep-water blow-out currently gushing gigantic quantities of crude into the Gulf of Mexico threatens at the time of writing to be the biggest environmental disaster in US history, and already the blame slick is reaching into every inlet and niche of government and the oil industry.

The fact that there could conceivably be industrial disasters in socialism means that, for socialists, the big question is how we would manage affairs better. What, if anything, would a democratic, communally-managed global society do different?

In the first place, we would have to ask whether we are really so desperate for oil that we are willing to maintain an industry now recognised as one of the most dangerous in the world. In a moneyless society, who would volunteer to risk their lives, when other sources of energy remain untapped, unexplored or undeveloped? There have been 858 fires and explosions, and 55 deaths, in the Gulf since 2001, yet new drilling licences have been granted every year by the hundreds. Many of these, like the one BP got for Deepwater Horizon, are a ‘categorical exclusion’ exempting the operator from scrutiny by the Environmental Protection Agency and intended only for projects where environmental damage in the event of failure is expected to be ‘minimal or non-existent’ (New Scientist, 15 May).

Even supposing that socialism could not break the addiction to oil, a very large supposition indeed and one too great to explore here, the question arises whether as a responsible collective we would dare push the drilling technology to its limits and well beyond our knowledge and ability to recover from a catastrophic failure. What is striking about this affair is the lack of preparedness shown by all parties. The Gulf spill is at nearly twice the depth required to crush a Navy submarine, making direct human intervention impossible. The blow-out preventer failed. The huge 125 tonne containment dome failed. The robot-teams trying to shut off the valves failed. The secondary drilling shaft may work but will take another two months. The ‘plume’ problem was not anticipated. The injection of dispersant at the well-head had never been tried, and may have contributed to the plume problem. Even the amount of oil coming out has been consistently underestimated, with BP at first playing for a safe 1,000 barrels a day, then later revising this to 5,000 while independent researchers estimate between 5 and 14 times as much as this (Guardian, 17 May).

BP have been criticised already for this downplaying and reluctance to provide information, but it’s easy to see their motives. In socialism there would be no stock market share-price to consider, or corporate image to protect, or litigation to avoid, all of it leading to a tendency to talk down the scale of the disaster and be tight-lipped with information in the interests of damage limitation. BP stock prices have fallen sharply, its ‘green’ image is in tatters, and already over a hundred lawsuits in Louisiana have been consolidated into a class action which will sue BP for hundreds of millions, a figure itself dwarfed by the cleanup costs which BP are of course trying to offload onto the Swiss company Transocean who ran the Deepwater Horizon rig.

“It is incumbent upon us to inform all of our neighbours, not just the islands, but those countries that could be affected by disasters that happen within our territorial waters”, says the US State Department (BBC Online, 19 May). Perhaps pro-capitalists will miss the irony here but socialists certainly won’t. In socialism these neighbours would have been consulted, and the risks made known, before any drilling went ahead, not merely informed after a disaster they had no say in preventing.

It is also not likely that, given consultation, socialist engineers would ignore or overlook published research which anticipated all the above problems. A report in 2000 revealed that blow-out preventers (BOPs) might fail at depths of a mile or more, causing catastrophic pollution. BP and Transocean can scarcely say they didn’t know this, as they co-authored the report (New Scientist, 15 May). The problem of deepwater ‘plumes’, where oil and water emulsify into gigantic underwater columns which never reach the surface and therefore cannot be contained by any known surface collection methods, may have astonished local oceanographers in the Gulf but was already known from experiments off Norway in 2000 (New Scientist, 22 May).

It is also vanishingly unlikely that socialist society would entrust such drilling to an operational team found responsible (BP were fined $87m plus a further $50m to settle criminal charges) for 270 safety violations which led to 15 deaths in an explosion in 2005. And in another court judgment in Texas in December 2009 BP were fined $100m and branded ‘serial polluters’.

The cost of the cleanup plus litigation to BP is estimated at between $1 – 2bn , but this has to be set against the year’s profit BP is expected to make from its drilling operations of around $20bn, so even in a worst case scenario it’s still cheaper for BP to pay out for cleaning up and court costs than avoid the disasters in the first place. In fact, BP is cleaning up in more senses than one.

And what of the future, now that the US government is aiming to raise the corporate liability cap from $75m to $10bn? The likelihood is that deepwater drilling will move to fields with no such regulations. One recent find off the Falklands is a case in point, and in waters three times deeper than the site of the current spill. The mind can only boggle at what will happen if a drilling operation there suffers a similar blow-out.

Socialism, and its productive and extractive processes, will be driven primarily by consideration of human need, and the way to define and then provide that need will be one of socialist society’s most pressing debates. In capitalism there are no such concerns. It follows the money, wherever it leads, even into the depths of hell, while human society and the environment inevitably get dragged down with it.
Paddy Shannon

Saturday, April 28, 2007

Cooking the Books: Underlying cause (2007)

The Cooking the Books column from the May 2007 issue of the Socialist Standard

On 23 March 2005 an explosion and fire occurred at the BP-owned oil refinery in Texas City. Fifteen workers were killed and 170 injured. The US Chemical and Safety Hazard Investigation Board decided that, on this occasion, it would investigate not just the technical causes of the explosion - which valve was left open, who left it open, which alarm wasn't working, and the like - but also "the underlying and significant cultural, human factors and organizational causes of the disaster that have a greater impact".

The result was a report two years later which the Times (21 March) headlined "Watchdog points finger at cost cuts in damning verdict on BP. Budget pressures behind refinery fire. Top management knew of problems".

BP had acquired the refinery when it took over Amoco in 1988. Following this, BP's chief executive, Sir John Browne, set a target for all its plants of reducing fixed costs in the year 1999-2000 by 25 percent. These are costs other than labour and materials and consist mainly of buildings and equipment including the costs of maintaining them. "In 2002", the report discovered, "BP engineers proposed connecting the Isom blowdown drum system to a flare but BP chose a less expensive option". The refinery manager "ruled against the investment and stated in an e-mail: 'Bank the savings in 99.999 per cent of the cases'".

The Chemical Safety Board's report concluded: "Cost-cutting and budget pressures from BP Group executive managers impaired process safety performance at Texas City".

To go beyond the technical reasons for the explosion and investigate other factors was a step in the right direction. But not far enough. The Board only looked for "the underlying and significant cultural, human factors and organizational causes" within BP. But why stop there? Why not ask what pressures BP's top executives were under to behave in the way they did?

If the Board had done this, they would have to have taken into account the declaration issued on the occasion of the BP take-over of Amoco in 1998:

"The managements of BP and Amoco already have a shared financial philosophy. The targets our companies have previously set are very similar - powerful annual earnings growth, a strongly-competitive return on capital, and dividends in line with underlying earnings" (see article, BP-Amoco Merger).

And also that, at the time, the price of oil was low, meaning that the main way to keep up profits would be by cutting costs rather than increasing sales. And that in fact it was to face what Sir John called in the same statement the "fierce" competition on the energy market that was behind the take-over. And, further, that takeovers involve an expenditure of money which has to be raised one way or another. And that raising this added further pressure to save money and - "in 99.999 per cent of the cases" – bank it.

The cost-cutting exercise was successful - in the middle of it Sir John was elevated to be Lord Browne of Madingley for services to industry - as recorded by the Times financial columnist Carl Mortished:

"In 2000 BP boasted that it had generated $2 billion in cost-savings, and then, in 2001, Lord Browne of Madingley announced a further $2 billion in 'performance improvements'. By the end of 2002 a further billion dollars was pulled out of the hat and the BP chief executive announced a programme of $2 billion stock repurchases. The cashflows were being delivered in places such as Texas City".