BP to pay for "gross negligence"

The US is holding BP accountable.

According to Reuters, the US Justice department has recently confirmed that it will hold BP accountable for gross negligence. This recent sharpening of the DoJ’s attitude towards BP’s responsibility in the 2010 Deepwater Horizon oil spill (the largest in history) foreshadows steeper than predicted reparations; if BP is found to have been guilty of misconduct, under the Clean Water Act, it faces charges of up to $21 billion (four times what was previously predicted) - on top of punitive and compensatory damages. As Reuters notes, both BP and Transocean ltd. (owner of the platform) were found guilty of cutting corners by the government-filed report:

Specifically, errors made by BP and Swiss-based Transocean Ltd, owner of the Deepwater Horizon platform, in deciphering a key pressure test of the Macondo well are a clear indication of gross negligence, the Justice Department said.

"That such a simple, yet fundamental and safety-critical test could have been so stunningly, blindingly botched in so many ways, by so many people, demonstrates gross negligence," the government said in its 39-page filing.

As noted by an Economist blog in 2010, the Horizon debacle stands as “one way to price in externalities”; the oil spill highlights the more obvious negative side-effects of our reliance on fossil fuels, and is – for now – the only way that oil companies’ income will reflect (an infinitesimal part) of their harm to society. Cynics at the time commented that the US government is far too shortsighted to hold BP accountable, and that the incident would soon blow over (in sharp contrast to the oil that still lingers in the Gulf). Two years down the line, Obama can only be praised for ensuring that big business is not above the Clean Water Act. The DoJ’s perseverance will serve as a glaring reminder that the oil industry is shirking some serious debits and is not as profitable as it appears.

It’s a shame there is no Clean Skies Act to hasten the market’s demand for renewable energy.

(On that note, BrainPickings reminds us that 35 years ago today, the Voyager 1 was launched to explore the solar system. Follow the link to watch an animated version of Carl Sagan's Pale Blue Dot. It kind of puts things into perspective.)

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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