UK:Outrage at huge pay rises for the oil bosses

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Outrage at huge pay rises for the oil bosses by ANTHONY BEVINS Political Editor THE "gas guzzling" fat cats of the oil industry were last night accused of bleeding the country dry.

Union leader John Edmonds issued a list of the oil moguls, including BP and Shell bosses - called in to see the Prime Minister on Thursday - who had received pay increases of more than 50 per cent last year.

Sir John Browne, group chief executive of BP Amoco, was paid #1,451,234, an increase of 59 per cent on the previous year - a cash reward capped by last year's knighthood.

Another of Thursday's No 10 guests was Mark Moody-Stuart, managing director of Royal Dutch Shell, who received #969,872 as chairman of Shell Transport and Trading last year, an increase of 52 per cent on the previous 12 months.

The minimum pay rise of BP and Shell bosses last year was 35 per cent but Sir John's deputy at BP, Rodney Chase, managed a record rise of 65 per cent.

"These figures expose the full extent of the gas guzzlers' greed," Mr Edmonds said. "They simply cannot be allowed to continue to bleed the country dry."

He challenged the moguls to pledge that if there was a cut in world oil prices - or in fuel duty - they would pass it on to customers at the pumps.

There is a widespread belief among ministers that the oil bosses gave their tacit support to this week's blockade, calculating that the loss of sales would soon be made up once supplies resumed - and that they could possibly increase their prices, and profits, on the back of the crisis.

Mr Edmonds' list of "gas guzzlers" also included last year's figures for the highest-paid directors of other oil companies, though they were not named because of the shroud of secrecy that pervades the industry.

The highest-paid director of Elf Petroleum UK got #640,000, including an annual pay rise of #225,000, while the best-paid director at Esso UK, which this week wanted to increase its pump prices, got #495,000.

The No 10 meeting called by the Prime Minister on Wednesday and attended by the oil company executives, also included Lord Sterling of Plaistow, chairman of Peninsular & Oriental which runs a fleet of oil tankers.

According to Mr Edmonds, he was paid #1,005,000 last year, a rise of 17 per cent. He was awarded a knighthood when Margaret Thatcher was Prime Minister and a peerage under John Major. Between 1984 and 1997, P&O donated #1,170,000 to the Tory party.

There was another kick in the teeth for consumers when British Airways and Virgin Atlantic put up fares by three per cent with immediate effect.

BA claimed its fuel costs have increased by 46 per cent, meaning its fuel bill for this financial year will be more than #1billion.

KLM Royal Dutch Airlines announced on Thursday it was raising fares by four per cent, also blaming higher fuel costs.

Simon Evans, of the Air Transport Users' Council, said: "I'm sure this announcement has been made because people will already know prices are going up as a result of the recent protests. So it's cynical of them to get the message out when people are more inclined to accept the explanation."

The fuel crisis will have cost Britain #1billion - the equivalent of #40 per household - by the time it is resolved, the Institute of Directors estimates. Schools were the big losers yesterday. The Department for Education and Employment said 160 primary, secondary and special schools in 40 English local authority areas had shut, while in Wales, 24 schools failed to open in Rhondda Cynon Taff. Around 100,000 children were enjoying unexpected holidays early in the new academic year.

With only one protest still going on, by a handful of people at BP's Grangemouth refinery in Scotland, oil companies were slowly but surely winning the battle to refuel Britain, prompting enormous queues at the replenished garages. More than a quarter of the country's 13,000 stations were on target to have received supplies by last night.

The NHS remained on red alert, some supermarkets continued to ration food, mail deliveries were maintained and six top Rugby Union matches were postponed.

Emergency measures were lifted on MERSEYSIDE and all petrol stations opened as fuel supplies flowed in. Police said queues for fuel were being reduced and 70 per cent of garages were stocked.

Bus company Arriva North West said there had been sufficient fuel deliveries for them to run a normal service for most of today. There had been fears of cancellations.

Police in CHESHIRE said there were seven garages in the county available for essential users and the overall situation was improving.

In BOLTON 36 children with special needs were unable to attend classes because of lack of transport but no schools were closed. Rationing was imposed at stores in WEARSIDE and CO. DURHAM to stop panic buyers stripping shelves. Motorists formed long queues at petrol stations throughout the region.

Weekend sports fixtures escaped unscathed although clubs urged supporters to share cars. In NEWCASTLE the Jesters ice hockey team is offering free parking and one free ticket for cars carrying four fans to their game today.

Absenteeism continued to soar because people were unable to reach their places of work. One exception was head teacher Ken Tonge who used pedal power for a 60-mile round trip to his NORTHUMBERLAND school. He got up at 6.30am to cycle from his home at Washington to Ashington High.

Thousands of commuters faced extra misery in BRADFORD when 450 bus drivers called a one-day strike. The men, employed by First Bradford, said it was too late to call off the protest even though it added to the many problems caused by the fuel crisis.

More than 100 schools in WAKEFIELD plan to close on Monday and most will remain shut on Tuesday as well. In ROTHERHAM another 350 children are likely to miss school. An underground car park at SCARBOROUGH had to be sealed off when firemen, called to a car leaking petrol, found pipes had been cut by thieves.

Police in NOTTINGHAMSHIRE said motorists were still queueing for fuel at petrol stations where supplies were designated for the emergency services only.

In DERBYSHIRE the police force, which stopped having its own reserves of petrol 10 years ago, said it may review the situation after it was caught short by the crisis.

Four schools in Birmingham had to be closed because of transport problems. In WARWICKSHIRE 21 schools were closed and that figure could increase to 50 by Monday. Organisers were forced to cancel the big Mardi Gras event in REDDITCH for the first time in 75 years.

Drivers queueing for petrol near SOUTHAMPTON inadvertently blocked tankers trying to leave a fuel depot. Police said it led to a crisis at a Tesco store in Bursledon where cars prevented access from the BP terminal in Hamble two miles away.

http://www.lineone.net/express/00/09/16/news/n0820-d.html

Bus tickets were accepted on LONDON Underground as a temporary measure when services were affected. Restrictions were made on 300 Dial-a-Ride vehicles that transport disabled people around London so essential journeys could continue.

-- Martin Thompson (mthom1927@aol.com), September 16, 2000


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