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A bad, bad day

Betsan Powys | 16:09 UK time, Monday, 26 January 2009

It was, said the Welsh Secretary, a bad, bad day.

He was hugely disappointed, determined to do what he could to help people - and reminded that he had done it all before.

Paul Murphy stood on almost exactly the same spot in his office in Gwydyr House eight years ago to face cameras and questions about huge job losses at Corus. The then Welsh Secretary joined Trade and Industry Secretary Stephen Byers and union leaders in talking about a body blow to Llanwern, Port Talbot, Ebbw Vale, Deeside and Bryngwyn.

Eight years ago he called on Corus to think again and "to act positively ".

But while Mr Murphy may be back and standing just where he did in 2001, economic conditions have not stood still. This time there was no rallying call for Corus to think again. This time he agreed with the First Minister that it will be even tougher for Welsh communities in Llanwern, Pontarddulais, Ammanford, Caerphilly and Shotton to bear the brunt of more job losses. This was "different", difficult.

No, mothballing isn't closing. The infrastructure is still there. The hot strip mill in Llanwern could be restarted when the orders start rolling in again but "our job in government has to be about people" said Mr Murphy and that meant supporting them now.

How? Wage subsidy? Is there a way - is there an appetite - for giving Tata Steel the kind of support the UK government has given parts of the banking sector? There were "various subsidy schemes" under discussion said Mr Murphy but his main concern was offering direct help to workers who may soon be out of a job.

At his right hand a leaflet the Wales Office had prepared earlier, listing the support available for businesses and households in Wales. There was a lot of help, said Mr Murphy, a host of schemes all designed to offer practical advice adn support where and when it was needed. It had all been a bit complicated but now it had been distilled.

The title? "Real help now".

Good timing, more's the pity.

About time say those who want to see something other than yet another summit.

On the wall, looking down on the gloomy gathering, a painting of a woman swathed in blue, playing the cello. It's beautiful, by Augustus John and is on loan from the National Museum.

Today I glanced up and just couldn't quite dismiss the thought of fiddling while Rome is burning.

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  • 1. At 6:16pm on 26 Jan 2009, Draig32 wrote:

    Well there you have it. The UK Labour government, in hock to the bankers, bails them out without blinking an eye. But Welsh workers can go hang. Llanwern may be mothballed but Pontarddulais and Ammanford are gone forever.

    They have sent out a clear, unambiguous message: we will look after the financiers and gamblers, but working people are a secondary consideration. I suspect many people will draw the appropriate conclusions, and eventually there will be a backlash.

    Iceland is only the start...

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  • 2. At 7:58pm on 26 Jan 2009, lordBeddGelert wrote:

    "Today I glanced up and just couldn't quite dismiss the thought of fiddling while Rome is burning. "

    Bang on the button, Betsan !!

    Although for the Corus workers, my advice would be to take the future into your own hands - this crunch may last awhile and it will be well worth thinking creatively for choices outside manufacturing.

    Don't wait for the Welsh Assembly Government to offer help - seize the day and work with friends, family and even ex-colleagues. Adaptability and resourcefulness are hallmarks of the Welsh and the weak pound may yet be our saviour through increased travel and tourism into Wales.

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  • 3. At 10:12pm on 26 Jan 2009, Stonemason wrote:


    The Labour government is not in hock to the bankers, the banks are in hock to the taxpayers.

    Would you have preferred a visit to your bank only to have been greeted with a message .....

    No cash today, or tomorrow, or ever.

    A patently obvious attempt to gain credence for a washed out Separatist agenda Draig32, or possibly scaremongering!

    The problem with Murphy and company is "no courage", and Plaid, all that is needed is half a dozen Nuclear plants, a Severn Barrage. Heathrow expansion, the Olympic village, big projects located throughout the UK, to generate real jobs based upon real needs being satisfied, so that real salaries can pay taxes.

    And how to pay for it, well that's a Conservative solution, in hand I might add.



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  • 4. At 10:50pm on 26 Jan 2009, mapexx wrote:

    I suggest that Murphy gets his big stick out and knocks some heads.

    Get that barrage thing sorted out and right away. it will, once under way require the total output of Llanwern, Port Talbot, and elsewhere to provide the massive amounts of steel for it's construction.
    It will also require the total output of St Athans cement as well, for the concrete, Severn Sands company with it's trucks and dredgers will provide the aggregate.

    Generation equipment can be obtained from firms that supply the national grid. Tarmac will be needed for the roads, Maybe it will include a new international airport, like the one in Hong Kong. As Cardiff airport is a waste of space to most people, unless they live near it.
    A new more rapid route to the south and south west of England and the south coast ports for both holidaymakers and commerce.


    Yes, lets pressure Murphy to get things moving, he says there is cash to hand, lets be having some, to sop up the looming unemployment here in Wales.

    Such a project as the barrage, or one of it's five other designs. can ensure work for the next ten years and more.

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  • 5. At 11:27pm on 26 Jan 2009, Dewi_H wrote:

    Hells Bells I agree with mapexx!!!

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  • 6. At 09:58am on 27 Jan 2009, Snoutsintrough wrote:

    I would suggest Draig 32 that you start reading proper economic journalism that explains who Banks/Government got into this mess. When the "bubble" which was based mainly on wealth created in City of London you and fellow welsh nats never objected to the taxes flowing from London which kept the mendicants and politocs in clover for so many years. What ever the reasons for banking problems without them the whole economy would collapse and hence government support/investment throughout western world. Just read authorative article in Sunday Times which states that Wales has second highest proporton of public sector expenditure after Northern Ireland in UK. The real question is what does Rhodri and his Nationalist mates do with all this money as if you look at statistics of general performance in schools/NHS/economy/people on benefits etc etc were at bottom of pile. I agree completely with need for major capital investments in Wales which will increase proper wealth but does anybody believe WAG has the capacity to support such projects.I refer to recent discussion on provision of energy which is becoming critical (15 years) led by Jane Davidson and in plummy voice she never mentioned Nuclear at all. Wind Farms/Wind Farms thats all she was interested in and evern support for Severn Barrage was subject to environmental issues,flocks of bird for gods sake. The birds will move as nature always adapts to changes. If this lot had been in charge during 1800's we'd never have had railways/ports etc and in later on god forbid an airport In Rhoose!!.. The best has got to be the National Party of Wales is completely opposed to Nuclear Power and yet for political reasons/his own skin our Deputy First Minister(who is leader of PC) supports new nuclear plant at Wylfa because he supports his constituents!!.What a "shower" and to thinks he's a Minister of Crown.Does any body know in Convention is still plodding on?

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  • 7. At 12:10pm on 27 Jan 2009, Draig32 wrote:

    To Stonemason -

    If the banks are in hock to the Taxpayer where is the accountability? The saying always used to be "No taxation without representation" - well we will be taxed to the hilt to pay for the banks but the government never even asked for proper representation on the boards of the big banks - they just panicked and chucked a load of money at them. If it's Nationalisation, it's half-cocked Nationalisation.

    As to my bank - Lloyds TSB - I am going to close my account and split my money between the Co-op bank and the local credit union. The UK's banking system is techically insolvent, and I'm skeptical of the UK government's ability to underwrite trillions of pounds of debt.

    As far as the Assembly goes, there is a wonderful idea for creating a unified rail network for Wales - a proper North-South line. The track bed is still there - but what's missing? The STEEL - there is a way of supporting our steel industry, but until we the people get off our passive backsides and start pressuring the policians the will I'm afraid just doesn't seem to be there.

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  • 8. At 2:12pm on 27 Jan 2009, BLUESNIK wrote:

    "...And that means working to REDUCE the regulatory burden. I know that London’s regulatory environment is regarded by the (financial services) industry as the best internationally – ahead of New York, and well ahead of Frankfurt and Paris. But current success is no guarantee of future status. And that’s why we are keen to work closely with the private sector as a genuine ALTERNATIVE to regulation or legislation."

    ED BALLS ~ Nov 2005 : Speech to the British Bankers Association.

    He also said.."What we have done for the city
    ,we will now do to the REST of the economy." (sic)...Oh Ed, how very true!

    CAN'T SAY WE WEREN'T WARNED? EH?

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  • 9. At 2:53pm on 27 Jan 2009, West-Wales wrote:

    The Severn Barrage

    There are issues with this project apart from the obvious environmental problems.

    The coast of Wales in fact the whole UK is rich in tidal energy opportunities.
    There is enough potential energy to power the whole of the UK and more - this energy source has the added benefit that unlike wind no stand by generation is required.

    For those interested look here;
    http://www.bwea.com/marine/resource.html

    Using a network of simple free flow turbines set in deep water tidal channels this energy can be easily and cheaply captured.
    Swansea University has been doing some ground breaking work in this area and has well advanced projects.

    The reason that Le Ranche
    http://en.wikipedia.org/wiki/Rance_tidal_power_plant
    has not been replicated elsewhere in the world despite many potentialy excellent sites is simply that the cost of building the Barrage is out of all proportion to the energy generated.

    If you relate the 12billion investment for the Severn Barrage to the cost for installation of a similar capacity from a network of coastal deepwater turbine systems, there is no contest.
    The other important issue is the time line - the freeflow network can be delivered quickly, unlike the Severn Barrage.

    The reason this technology is not already being installed is simple - The Assembly has prioritised wind, and investment in marine has been patchy mainly into wave.

    Most Assembly seed money has gone to overseas manufacture and research programs, instead of supporting Welsh Research and development projects.

    Also the legal side is complex 14 different approvals have to be obtained with the usual catch 22 problem of you can't have my approval till I get yours.
    The Assembly has been asked to address this but have done nothing.

    I understand the option for coastal free flow capture systems was not considered in the Severn study which restricted its remit to the estuary only.

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  • 10. At 4:19pm on 27 Jan 2009, Draig32 wrote:

    The Severn Barrage is such a huge project I can't see it getting off the ground - my guess is that some sort of smaller compromise will be reached. The environmental arguments are well known - those in favour argue that the destruction of the Gwent levels can be offset by the creation of a new ecosystem "somewhere else in the UK" - so that's alright then...

    The other issue is the knock-on effects on the landward side - to build a project of this size will require upgrading the high voltage grid on one or both sides of the Severn. It's unlikely to be on the Welsh side because the Grid is already overbooked. In the next 4 years it will have to accomodate the increased load coming from;

    1) The new Uskmouth gas-fired power station. (825mw)

    2) Possibly two giant gas-fired power stations in Pembroke (one of which will probably be approved before the end of the year) (2-4000mw)

    3) A huge ramp up in wind generation across south wales. (500mw+?)

    In other words, whatever gets built, the electricity will not be needed in s.wales because by then we will be a net exporter of electricity - and by a huge margin.

    I appreciate the argument that the Assembly is doing nothing, but what can it do when the control freaks in London refuse to devolve power consents for stations over 50mw - not hard to see why either really...

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  • 11. At 5:11pm on 27 Jan 2009, West-Wales wrote:

    Plenty of reserve capacity in the SW 400KV line at present - it was sized to carry the 2000MW's from the Pembroke Oil fired station which is now demolished.

    The design included capacity for future development, I think the total is about 4000 MW.

    The largest of the Severn Projects will deliver 8.6 Gigawatts about twice the current capacity of the SW line, but main Grid node connections are geographically close to the planned site on both shores.

    It is also obvious that the whole grid will need to be reinforced and redesigned to handle the new distributed generation system, that is replacing the old very large Rankin Cycle coal fired stations.

    The future is definitely electric.

    Draig32
    as you say above;
    "As far as the Assembly goes, there is a wonderful idea for creating a unified rail network for Wales - a proper North-South line. The track bed is still there "
    This could have been a major project for the Object One money which has been wasted on things like Council buildings and the like.

    This rail link would have changed the commercial face of Wales as would dueling of the A40 & A477.

    Transport links are vital to our economy but unfortunately the WAG have other priorities than making Wales work.


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  • 12. At 5:13pm on 27 Jan 2009, Stonemason wrote:

    Draig32, your .....

    #7
    "If the banks are in hock to the Taxpayer where is the accountability?"

    Westminster, our elected government.

    #10

    "I appreciate the argument that the Assembly is doing nothing, but what can it do when the control freaks in London refuse to devolve power consents for stations over 50mw - not hard to see why either really... "

    If Westminster devolved this particular power to Cardiff, no Nuclear, and that would be a disaster for the UK.

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  • 13. At 6:37pm on 27 Jan 2009, West-Wales wrote:

    There is good sense in not devolving the >50MW consents to the Assembly.

    They do not have - and cannot achieve within a reasonable budget - the analysis, oversight systems and expertise to properly evaluate these projects.

    Consider the just the work by HSE to carry out full and proper risk assessments for the Milford Haven Gas projects, then think about the critical detail of the review of strategic requirement, and the marine studies.
    just to do the studies the cost ran into many millions and the level of expertise needed considerable.

    To have a team and facilities to carry out such work, and keep it up and running is way outside any forseeable Assembly budget.
    Even supposing you could get the brains and offer a suitable career pathway.

    This is not stuff for amateurs or Assembly committee's - this needs real knowledge understanding and expertise.
    Even our Universities do not have the abilities or people to even scratch the surface of these sort of studies.

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  • 14. At 6:49pm on 27 Jan 2009, Snoutsintrough wrote:

    No12. Surely with the decision of our Deputy First Minister (National Party of Wales) Independance for wales who has presumably sworn an oath of allegiance to our Queen to support the building of new nuclear plant at Wylfa in support of his constituents the policy of PC is torn to shreds. He's got to stay in post as the costs of running trains/boats/and planes has to be justified. Why do you need to improve north to south transport links as all the main traffic i.e.M4 goest west to east. Tthe bottlenecks around Cardiff in rush hour need addressing and what has happened to development by MOD in St.athan?. Looking at him this afternoon for 10 minutes he does seem to be enjoying himself directing all this public money(mainly english) around in one direction or another. The labour Party looks like losing this one as in this recession/depression they've allowed PC to run the show. Rhodri looks irrelevent and PC will be able to trumpet for years how they saved the welsh economy. Put Edwina in charge she knows what to do with those "pesky"experts and their opinions and she'd "dish the nats".

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  • 15. At 7:47pm on 27 Jan 2009, hurrahformadmatt wrote:

    a touch more neutralness at the end? I don't like the welsh government particularly but give them a fair calling at least

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  • 16. At 10:16pm on 27 Jan 2009, Lyn David Thomas wrote:

    The allegation that the Welsh Government should have funded the expansion of the rail network to open a new North South line using the old track bed (Carmarthen to Aberystwyth) is a little unfair (to put it mildly) - the National Assembly have very little powers over rail and is restricted to minor improvements. I agree expanding the network would indeed do much to improve the Welsh economy.

    However it is worth reminding people that macro economic policy is the preserve of the UK government and the National Assembly and the Welsh Government have very restricted powers in this regard.

    Also much as I'd like to blame the UK government for the current recession I have to reluctantly point out that the problem largely stems from us catching the flack from the USA banking collapse.

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  • 17. At 11:49pm on 27 Jan 2009, Draig32 wrote:

    To West Wales:

    Agree that the Assembly may not have the expertise to deal with certain aspects of these projects. On theother hand I wouldn't invest much confidence in Berr either.

    As far as the pipeline goes, they haven't got a clue what they've done down here - and in reality they don't want to know. I can tell you with absolute certainty that there are certain installations along the pipeline route - key installations - that are totally unregulated by the HSE. The BERR have been informed - and they have passed the buck to the Assembly. The HSE have freely admitted that they did not have the manpower to properly oversee the entire LNG project.

    Two officers were assigned to deal with a £2 billion project. And let's not forget that the HSE's Chemical Installations Directorate is situated in Cardiff - a few minutes walk from some of the WAG buildings...

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  • 18. At 11:50pm on 27 Jan 2009, Draig32 wrote:

    Question for Lyn Thomas:

    Would full lawmaking powers make a big difference to rail in Wales then?

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  • 19. At 09:13am on 28 Jan 2009, Lyn David Thomas wrote:

    It could - though powers over rail would have to be added to it - at the moment it is firmly in London.

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  • 20. At 10:51am on 28 Jan 2009, thinkingandbeing wrote:

    Why isn't there more anger in Wales?

    The people who caused the closure of factories in Wales are, on the whole, unaffected by their own incompetence and their unmoderated greed has seen them set for life.

    Meanwhile the people who actually do the WORK are discarded like the broken puppets they are.

    Once upon a time that would have provoked a reaction that governments feared.

    What does Wales do nowadays about being the City of London's plaything? It goes to its abusers and asks "can I have some more please?"

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  • 21. At 1:33pm on 28 Jan 2009, Draig32 wrote:

    To Lyn Thomas -

    The 20 "fields" which the Assembly would gain full legislative competence over include Transport - so surely Rail falls within that remit?

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  • 22. At 8:42pm on 28 Jan 2009, legendaryavocet wrote:

    Wasn't it good to hear Don Touhig MP in Parliament today, exposing the propagandist nature of the publicly-funded All Wales Convention, currently doing the rounds trying to pursuade the Welsh people to vote for the devolution of further powers to the WAG. Has anyone seen the ridiculous video posted on the Convention's website - pure patronising propaganda! and they try to tell us it's not a yes campaign.

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  • 23. At 9:41pm on 28 Jan 2009, Lyn David Thomas wrote:

    Although transport is one of the fields I am not sure that the rail network is fully covered in that. At the moment its reserved for Westminster and there is some scope for grant aiding some projects but that is as far as it goes. I'd love to be proved wrong but even if transport is fully included I don't think the National Assembly would have the funds to expand the rail network other than marginally. They certainly couldn't direct network rail to do it

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  • 24. At 11:35pm on 28 Jan 2009, -Drachenfyre- wrote:

    The economic recession is global in nature, and would have reached Wales eventually.

    However, the Welsh are handicapped by the fact that Welsh MPs are only 40 out of 646, each competing for attention to their own constituencies. They can not complete for economic relief as well as their English counterparts, as clearly more English MPs in the north of England will attract the lion's share of any relief packages.

    As the events of Tan yn Llyn and Capel Celyn demonstrate, even in the face of absolute and universal Welsh opposition to anything passed by Westmonster, Westmonster will always get its way.

    The truth of the matter is, an independent Principality of Wales with its own Welsh government would be able to craft and economic policy to mitigate the effects of the recession and keep businesses within Wales.

    Denmark is very successful even though with fewer natural resources then Wales, and despite its proximity to the economic powerhouse that is Germany.

    An independent Wales can chart its own path without Westmonster.

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  • 25. At 10:45am on 29 Jan 2009, FiDafydd wrote:

    Re 22

    Ah, the great Don Touhig, he of the flashy handkerchief and enormous expenses. He is another example of a British nationalist who cannot accept that Westminster and the UK Government share any of the blame for our present dire situation. He thinks his time is best spent on rubbishing any aspirations Wales, especially the young people of Wales, may have as a nation that can sort out its own problems.

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  • 26. At 8:49pm on 29 Jan 2009, Stonemason wrote:

    -Drachenfyre-, your .....

    "However, the Welsh are handicapped by the .......... as clearly more English MPs in the north of England will attract the lion's share of any relief packages."

    Your analysis of the workings of Westminster is bilious in the extreme. Have you heard of the Barnet formula that gives the Welsh people a greater part of the tax pot than the majority of English people. This of course is in advance of "relief packages", were you expecting food parcels. Do you imagine the support of the banks excludes those branches in Wales, will the credit guarantees be restricted to non-welsh businesses, will the Severn Barrage jobs be restricted to English workers.

    Your last .....

    "An independent Wales can chart its own path", no doubt with Plaid Cymru at the helm ....... no rudder I'm afraid, crew abandoning ship, deserting the captain, and where is Janet Ryder ....


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  • 27. At 01:02am on 30 Jan 2009, Draig32 wrote:

    Well, they certainly have the power to do it in Scotland. And here's the point in primary legislation. It's an old piece but the point stands:

    "A draft Bill proposing a £130m rail link from Edinburgh to the Scottish Borders will submitted to the Scottish Parliament on 11 September 03.

    Proposers believe that it might be possible to open the route by 2008. Trains last ran on the line 35 years ago.

    It has also been suggested that the project should have a second phase, extending the line further south to Hawick."

    Didn't I read something about the Assembly sending millions of unspent money BACK to Europe the other day?

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  • 28. At 9:24pm on 30 Jan 2009, Lyn David Thomas wrote:

    Scotland does, what the Scottish settlement did was devolve everything and reserve a few areas to Westminster. In the case of Wales all that was devolved were the areas that the old Welsh Office had responsibility for administering and the power to make secondary legislation under the specific powers that had been devolved to it. This creates a patchwork of legislative and administrative competence that changes with nearly every Westminster Act. If the section of the GOWA 2006 comes into effect giving the National Assembly primary legislative powers I am not sure it would be as comprehensive as encompassing the totality of a subject field (I hope I am wrong) just the ability to legislate on those areas in the field already held.

    Once again we got a rather ramshackle body because of internal tensions in the Labour Party. It would have been far easier to do what they did in Scotland and devolve it all with powers in specific areas reserved (it would have created a much shorter bill too).

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  • 29. At 3:09pm on 31 Jan 2009, Draig32 wrote:

    Agreed. I had a good look at the legislation yesterday and see what you mean. I'm tempted to say that even if we had a successful referendum we will still only have a small proportion of the powers scotland has for this basic reason.

    Ultimately the work of the Convention has already been done by the Richard Commission - which made much more far reaching recommendations. It's also notable that this Commission was set up at the behest of the Lib Dems while they were in coalition with Labour.

    I really think a lot of this constitutional tinkering is ultimately dictated by the needs of the Labour Party to come to terms with coalition politics. Labour is not as monolithic in the Assembly as it is in parliament, so it has to suck in another party to prop it up.

    Ultimately, we are only going to get radical constitutional change when people see Labour for what it is - and kick it out of power wholesale.

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  • 30. At 7:19pm on 31 Jan 2009, mapexx wrote:

    Message 29....


    re: your last sentence...


    You cannot possibly say that.

    You may find that a change in Westminster, especially if to the right, could well see the eradication of what little bit you lot think you have at present.

    You would be more sensible to hope that the status quo remains, at least, as it is, you have something.

    That is, until the sleeping mass wakes up to what is really happeng to their democaritic freedoms.

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