Thursday, 19 June 2008

GMB on oil speculation

This is a week old, but seeing as they have been mandated by congress to do some research it will be interesting to see what they come out with:

12 Jun 2008

GMB Congress today carried a motion which called upon the Union to expose the inner workings of the international oil market which has led to oil prices doubling in the last year. The Congress expressed concern that sky high fuel prices and increasing food prices was leading to a position where pensioners on the state pension would have to choose between ‘heating and eating’ over next winter unless action is taken to get fuel prices down.

The Congress called upon the Union to undertake detailed studies of how the international energy market is working and what interventions the British state can make to safeguard the interests of UK citizens in the face of unbridled speculation.

GMB Congress also called on the Labour government to ensure that the poorest pensioners have enough money to pay for fuel and food next winter.

Justin Bowden, GMB Senior Organiser for GMB London Region said, “The oil speculators claim that they are doing nothing illegal. That may well be the case but it should not be. In a single day the amount of paper barrels of oil traded can be three times the amount of actual barrels traded in a year. What is all this about? Oil is far too important to be left to the market.

Driving up fuel prices to double what they were last year will lead to pensioners having to choose between ‘heating or eating’. This means that the oil speculators are in effect ‘merchants of death’. This must not be allowed to continue. GMB will now act on this.”

3 comments:

CityUnslicker said...

howling at the moon again. What do the Unions propose to do about speculation? Do they want worldwide authority over exchange markets? How are they going to get that?

Where is the proof that speculation is the cause of oil price increases? there are many potential causes, invading middle eastern countries included.

it is the total lack of basis in reality that makes me so anti-union in practice (in principle,they are brilliant).

Nick Drew said...

oh dear or dear oh dear

"What is all this about?" - pure stand-up comedy: does he do deadpan, or a silly voice ?

"GMB will now act on this" - OK: let the GMB explain to the good citizens of China and India that they are not allowed to aspire to electricity and cars ...

this, I suppose, is why your blog exists, Tom !

Tom P said...

hello chaps, welcome to the wacky world of union politics!

the important point (to me) is that they are going to do some research, the rhetoric around the decision doesn't really matter. a bit more union understanding of how the markets work can only be a good thing for me.

I've had to alter (if not reverse) my view on a few issues after researching them for policy papers.