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UK economy officially in recession

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The UK economy has shrunk by 20.4% between April and June, when the coronavirus lockdown was at its most severe. Experts say the downturn brought on by the pandemic led to the biggest fall in quarterly GDP on record.

The UK on Wednesday officially fell into recession for the first time in 11 years. The economy collapsed by a record 20.4% in the second quarter, compared to the first quarter, as a result of coronavirus lockdown measures imposed to contain the outbreak, agency reports said.

Between April and June, household spending plunged as businesses were ordered to shut down, while industries such as construction rolled back on output and production.

“The recession brought on by the coronavirus pandemic has led to the biggest fall in quarterly GDP on record,” Jonathan Athow of the Office for National Statistics (ONS) said.

Data from the ONS showed that the UK economy had a 2.2%  quarterly contraction in the first three months of the year.

The technical definition of a recession is two straight quarters of economic decline.

The economic decline was concentrated in April —  the peak of lockdown.

The ONS said the economy bounced back in June as the government started to relax coronavirus restrictions.

Non-essential retailers in England, including clothes shops and bookshops, reopened their doors on June 15.

“The economy began to bounce back in June with shops reopening, factories beginning to ramp up production and house-building continuing to recover,” Athow said. But “Despite this, gross domestic product (GDP) in June still remains a sixth below its level in February, before the virus struck,” he added.

The UK’s service sector, which makes up four fifths of the economy, suffered the biggest quarterly decline on record. Car manufacturing, meanwhile, faced its slowest production rate since 1955.

Chancellor of the Exchequer Rishi Sunak warned that the economic slump would lead to further job losses in the coming months.

“Today’s figures confirm that hard times are here,” Sunak said. “Hundreds of thousands of people have already lost their jobs, and sadly, in the coming months many more will.”

Some 1.2 million employers have taken advantage of the government’s Coronavirus Job Retention Scheme to furlough 9.6 million people at a cost to the government of 33.8 billion pounds ($44 billion, €38 billion).

Sunak said he is ending the program in October because it gives “false hope” to furloughed workers and hinders them from getting new jobs as their skills decline.

The UK’s recession is deeper than those recorded by comparable countries such as the US and other European economies, notably Germany and France.

Germany’s governing coalition in June agreed on a €130 billion stimulus package to help pull the country’s economy out of recession. The government hoped the package would ease Germans’ financial strain and boost consumer spending.

In comparison to other European countries, Germany’s almost one month of lockdown was relatively short. But the German economy still went into recession in the first quarter of 2020.

Unemployment in May rose from 5.8% to 6.3%, figures which could have been higher if it were not for Germany’s “kurzarbeit”  program, a wage subsidy scheme that allows struggling companies to decrease employees’ working hours instead of making them redundant.

 



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CTU: Teacher shortage casts doubt on govt.’s education reforms

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Prime Minister

By Chaminda Silva

The government’s ambitious plans to overhaul Sri Lanka’s school education system and introduce new curricula could face serious implementation difficulties, with teacher unions warning that a longstanding and severe shortage of teachers remains unresolved.

The warning came as Prime Minister Dr. Harini Amarasuriya announced yesterday that new curricula would be introduced for Grades 2 and 6 next year, while also stating that the government planned to recruit around 30,000 new teachers across the education system by February.

However, the Ceylon Teachers’ Union (CTU) questioned whether the government would be able to provide the teachers required to implement the proposed reforms, claiming that the recruitment process itself had become mired in problems.

CTU General Secretary Joseph Stalin accused the government of making misleading claims about teacher recruitment and said the shortage that had affected schools for more than a year would continue into next year.

“There is currently a severe teacher shortage in the school system,” Stalin told a press conference in Colombo yesterday.

He said the government had previously acknowledged that there were about 46,000 teacher vacancies in the school system, but the figure was later revised to around 36,000.

“Those vacancies have remained unfilled for more than a year and a half. The school system has continued to operate with a severe teacher shortage throughout this period,” he said.

Stalin questioned how the government intended to introduce new curricula while thousands of existing teaching vacancies remained unfilled.

He said the Government had initially announced plans to recruit 23,000 teachers, despite the number of vacancies being significantly higher.

Although a gazette notification, relating to the recruitment had been issued, only around 17,000 applicants had been summoned for the initial round of interviews, he added.

Stalin said interviews were expected to begin in November and that appointments would, therefore, be made only from January onwards.

“If there are more than 36,000 teacher vacancies, the Government has decided to recruit only 23,000 teachers, and only around 17,000 have been called for interviews.

Who will take responsibility for the remaining vacancies?” he asked.

He said the problem was not merely one of numbers but also involved the Government’s recruitment procedure.

According to Stalin, shortcomings and ambiguities in the gazette notification issued for the recruitment examination had contributed to the present crisis.

“We primarily believe that the lack of proper procedures in the gazette notification issued for the recruitment examinations has contributed to this crisis. The ambiguities in the notification itself have led to the recruitment process becoming a major issue,” he said.

The shortage was also affecting the transfer system, Stalin mentioned.

A large number of teachers had been unable to obtain transfers because replacements were not available, with some teachers remaining at the same school for 12 or 13 years, he claimed.

As replacements had not been recruited, such teachers would have to remain at their present schools for another year, he said.

“This is a serious crisis. However, the situation is even more critical for students who are left without teachers,” Stalin said.

He also questioned the Government’s plans to close schools with fewer than 50 students.

“We suspect that this move is to take the teachers from these schools and redeploy them to other schools to fill vacancies there.”

The union’s concerns come at a time when the Government is pushing ahead with a major overhaul of the education system.

Addressing the Badulla District Women’s Conference yesterday, Prime Minister Amarasuriya said the Government would introduce new curricula for Grades 2 and 6 next year as part of its wider education reforms.

She said a new curriculum had already been introduced for Grade 1 this year, while new curricula for Grades 2 and 6 would be introduced over the next two years.

The Prime Minister said the Government was developing a new education system aimed at securing the future of all children, with the emphasis shifting away from producing students, focused solely on examinations.

The Government’s objective was to nurture a generation capable of facing future challenges successfully and confidently, she said.

The Prime Minister also announced that interviews for the recruitment of 17,000 teachers would commence on November 20.

She said approval had also been granted to recruit 2,000 academic staff members for the university system, with that recruitment process already under way.

The Government plans to recruit approximately 30,000 new teachers across the education system by February next year, she said.

A special programme would also be implemented to improve infrastructure facilities in schools, the Prime Minister added.

The contrasting positions highlight a potentially significant gap between the Government’s education reform timetable and the capacity of the existing school system to deliver it.

While the Government has set out a timetable for introducing new curricula and recruiting tens of thousands of teachers, the CTU argues that the existing shortage, delays in recruitment and unresolved transfer problems could leave schools struggling to provide adequate teaching staff when the reforms take effect.

With the Government planning to introduce another round of curriculum changes next year, the ability to fill vacancies in time could, therefore, become a crucial test of whether its broader education reform programme can be implemented as planned.

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Norochcholai to remain offline for several days after blackout

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The Norochcholai coal power plant will remain disconnected from the national grid for several days following Saturday’s countrywide power failure, as authorities continue to follow safety procedures after the incident.

The National System Operator (NSO) said the 810-megawatt plant had been shut down as a precaution after the sudden power outage on October 17 and would not be reconnected to the grid until the necessary safety measures were completed.

The temporary loss of 810 MW of generating capacity would be managed through careful electricity supply arrangements to minimise the impact on consumers over the coming days, the NSO said.

It said the prevailing rainy weather was expected to help sustain hydropower generation at high levels, while a projected decline in electricity demand would further ease pressure on the system.

The countrywide blackout occurred at around 11.43 a.m. on October 17 after a generating unit disconnected from the national grid, creating an imbalance that caused the entire power system to collapse within less than 30 seconds.

Restoration efforts began shortly afterwards. By 12.11 p.m., major hydropower generating units had been brought back online and the power system was restarted simultaneously in four separate sections.

The restoration process was complicated by small-scale power generation facilities that were not under the direct control of the system control centre. However, electricity supplies were progressively restored through the activation of distribution feeders from 12.37 p.m.

By around 3 p.m., power had been restored to essential services, including major hospitals, water treatment plants and the airport.

Grid substations across the country had been reconnected by around 5 p.m., restoring electricity to the majority of consumers, the NSO said.

The operator stressed that the sudden disconnection of a generating unit as a safety measure was a normal occurrence at power plants. However, such a disconnection resulting in a complete collapse of the national power system was not considered normal.

An internal investigation has, therefore, been launched to establish the sequence of events that led to the islandwide outage and determine its underlying causes, the NSO said.

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President links businessman held with arms to politicians

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By Norman Palihawadane

President Anura Kumara Dissanayake yesterday said a businessman, arrested with a caches of firearms, ammunition and hand grenades, had links to a politician, as authorities continued investigations into the seizure.

Addressing a public gathering in Badulla, the President said the suspect was among those being investigated in connection with operations targeting organised crime and that authorities were aware of his political connections.

He also referred to a video footage allegedly showing the suspect firing at people in the Weliweriya area, describing it as an example of the dangerous activities associated with individuals possessing illegal firearms.

The 38-year-old businessman, who is reportedly the owner of a cinema, and a relative of a politician, was arrested following a search conducted by officers of the Colombo District Crime Division at the cinema on Hanwella Road, in the Kirindiwela Police Division, on October 17.

Police said the search had been carried out based on information received by investigators.

The weapons and ammunition seized included two foreign-made pistols, a revolver, a foreign-made repeater firearm and a foreign-made 12-bore firearm.

Police also recovered hundreds of rounds of ammunition, including 398 rounds of 12-bore ammunition, 278 rounds of 9mm ammunition, 49 rounds of .32-calibre ammunition and 3,083 rounds of .22-calibre ammunition, along with two live hand grenades.

The suspect, a resident of the Millathe area, is being questioned as investigations continue.

The Police Media Division said police would seek a detention order to facilitate further questioning of the suspect and advance the investigation.

The Colombo District Crime Division is conducting further investigations into the cache of weapons and the suspect’s alleged activities and connections.

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