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The New European: A pop-up publishing project as messy as its Brexit shitstormspiration

12 Jul

A newspaper for annoyed Remain voters that is only intended to run for four issues met with a yawn from the media, looks like an A-Level In-Design project and has no clear editorial agenda. What’s the point?

Strong feelings have been aroused in me by a new newspaper launched last Friday, called The New European. I was made aware of it on the day of its launch when I came across a photo of its cover on Twitter; I then had a read of the press release about it from Archant, a publisher of local newspapers across the United Kingdom, and a look at the media coverage of the launch. I’ve had a stab at reviewing the media coverage, then the design and content – which makes for a long and possibly quite disorganised read. But what are blogs for?

The launch issue cover of The New European

The New European is a weekly newspaper being published under a ‘pop-up’ model, with Archant committing to just four issues and then letting sales figures decide if it continues. Its intended audience is those living in the UK who voted to remain in the European Union: it has been rushed out, from concept to news-stand, in nine days to capture the post-Brexit mood while it lasts. Its first print run was 200,000 copies selling at £2 apiece (or all four issues for six pounds if you subscribe) and editor Matt Kelly, also Archant’s chief content officer, has said that he would be “delighted” if they shifted 50,000 of those.

First, what is a New European? Who knows. No one’s saying. 

Having re-launched two magazines as their editor, and being a journalist, I take a serious interest in these things. So I’m disappointed with the lack of interest in the launch from the media itself. I have only come across one in any way substantive article about it – at vice.co.uk – otherwise there has been no thoughtful analysis. Merely, depressingly, cut-and-pasted quotes from Archant’s press release in workmanlike, disinterested news pieces, even from The Guardian‘s Roy Greenslade, whose only job at the paper is to talk about media happenings. Nobody appears to have contacted Archant or Kelly for any insight or comment that goes beyond repeating what is in the press release. Twitter hasn’t lit up about it either. Steve Hewlett, editor and presenter of BBC Radio 4’s The Media Show, broadcast every Wednesday, didn’t see fit to mention The New European in its launch week, though it got a name-check in The World This Weekend two days after it came out – but no mention of the content or response. The Daily Politics gave Kelly a spot, but Andrew Neil’s opening question missed the point, and he seemed to forget that Archant has only committed to four weeks: “So, what do you think are its chances?” Neil’s other guest, Miranda Green, a seasoned hack, editor and founder of a newspaper herself, basically gave a ¯\_()_/¯ when asked what she thought.

The shrugging text emoji, for the uninitiated, is used in social media contexts to convey feelings of meh-ness, of “nihilism, bemused resignation, and is a Zen-like tool to accept the chaos of universe”. These are sentiments the British voting public know well and that I think plague world-weary media workers too, to the point where too many of them think cutting and pasting from a press release counts as a publishable story. Shrugging text emoji man actually seems to sum up the media response to this launch. The problem is that if the media doesn’t care about the project, it won’t support it, and the newspaper will struggle to keep attracting attention. I’m sure the editor would say that A) its first crop of celebrity columnists is itself media support and B) the paper doesn’t need or desire media support. But that is the world we live in. Actually, Kelly knows that: he’s made sure that the Miranda Sawyers and James Browns are in there, saying anything at all, so they have a reason to tweet about this launch and tell their readers to go and buy a copy (though Sawyer seems to only have managed a re-tweet about it, not commenting herself). On Sunday night, after I tweeted Kelly enquiring as to why he ran a topless photo of one of his contributors, lads mags-era publishing guru James Brown, on the cover, Kelly tweeted back: “because I liked it. it’s a personal indulgence. I’ll pass on your wishes when I see him for breakfast tomorrow”. I’m quite po-faced about that response because it’s defensive and bitchy, not to mention being horribly “famous person A is my mate and that’s why he’s on the cover”, which I find grubby, but predictably media. My boyfriend thinks he was just being sarcastic – he also says I’m picking on the village idiot (the paper, not the editor) and that’s why much of the media has ignored it – but such flippancy would be even less palatable to me than sleb name-dropping.

Armchair experts

The New European presents its crop of media commentators as its ‘experts’ (challenging head on Michael Gove’s infamous comment that “people in this country have had enough of experts”, and right at the top of the cover), but they’re not. They’re hacks. I guess there are different grades of expert. For example, the government has been talking with the ‘Big Four’ consulting firms, mostly known by Average Joe for their skill in helping rich folk and big companies avoid taxes, about helping it navigate the way from Brexit vote to actual EU exit and beyond. Four days before The New European launched, KPMG appointed a head of Brexit, regulatory specialist Karen Briggs, bringing together various colleagues to form a crack team to help worried businesses ready for doomsday. Given that none of us have ever exited the EU before, these firms cannot claim any specific expertise in this area, but that is not an impediment. They are viewed as go-tos by government and business, so view them as your Brexit-makers. It is people like Briggs who The New European should get to contribute, so that readers can hear from the individuals who will really inform the political decisions that will shape our lives and those of our children. I don’t mind Louise Chunn‘s slim piece on women in leadership roles, but there are any number of people who can write on why women are suited to lead in tough times. We’ll find out in the coming months, I guess, whether – as Chunn postulates – “women, especially middle-aged women, have more empathy for others than men”. Her assertions come across as total cod science and are in very dangerous waters well contested by a range of informed commentators. Kelly is right to stick something about women leaders in the paper, given that’s the way it was going while the newspaper was in gestation; and we’re going to endure a lot more of that from the media as May’s premiership gets under way. But it doesn’t strike me as ‘expert comment’ to talk about women in the way someone working at, say, Sterling Cooper Draper Pryce in 1963 might. 

Kelly writes in his first editorial that Archant went with the newspaper format over other mediums because “print is committing” – a comment clearly at odds with the pop-up model – then added that, after its four week-long print run, it could turn instead into “a digital platform, or a social media community, or an event.

“Or it may just pass, like the summer wind; no more than a fleeting curiosity in a season of madness”.

Summer wind is a workable cliché here. The editorial approach inside The New European is consciously light-hearted (I wonder if a portion of that is down to its team being drawn entirely from existing Archant staff who are still probably doing their day jobs while contributing). The cover is just bizarre, dominated by a large cartoon of a dog’s thought bubble about stupid voters, and middle-aged publishing eye candy from a topless James Brown – there’s other stuff crammed on there, but it can’t divert my attention from a half-naked man looking like he’s about to start crying because it’s Sunday, he’s run out of croissants and it’s too damp to go on a Sainsbury’s run. I enjoyed his piece on his formative experiences holidaying in Germany and how it formed his European world-view, and I think it’s good that it’s in there. But that cover photo is actually the opposite of what he’s saying: that it’s good to go and explore Europe, not stay back for the comforts of home. It’s a great piece to introduce the more wiffy-waffy cultural half of the newspaper but it’s not right for the cover, and I don’t need to see him de-robed and starved of breakfast breads by the British climate to be compelled to read him. It really undermines the paper’s raison d’etre, which, even if delivered in a light-hearted way, is still very serious – discussing how we’re to shape a future relationship with the EU when we’re outside it and what we’ll lose in so doing, culturally, economically and in formative backpacking trips.

Setting the ‘agenda’

Guardian columnist Jonathan Freedland has the first ‘spread’, of sorts, with a note on the emerging ‘Left Behind’ – Brexiteers who reside in poorer parts of the UK, who allegedly voted to leave as a protest at being left behind by politics and society. His two-column piece is jemmied between three very large images of street demonstrations in the past year or so. The stand-first devotes most of itself to bowing to Freedland’s profile instead of telling me what I’ll gain from reading the piece, and there are no cross-heads in the article, which makes the reading experience a little breathless. The top of each page that carries the name of the sections, called the folio, introduces the 12-page section this piece is in as ‘Agenda’, a well-trodden, safe-as-houses name for a front-of-book section that you don’t really know how to name, but need to make sound vital, ‘newsy’ and authoritative. It means bugger all and can’t really help persuade me that the copy is worth a look, since a weekly newspaper can’t easily deliver ‘newsy’. It cannot set the agenda, or any agenda worth setting, when the main columnist in its launch issue has opened his editorial by writing that the government is without a prime minister, and then six days later, we have Prime Minster May by default. Such is the velocity of things at the moment. So The New European literally carries yesterday’s news. That said, Archant says that each issue should be treated as a collectors’ item. But I can’t see why anyone would look back at this paper versus another well-established one for a set-in-aspic record of such astonishing times as these.

The “What’s on in Europe” spread. Photo @UnitedKingdomEU

The second big editorial spread in Agenda is simply comprised of large-font, space filling quotes from around Twitter, with big screen grabs of a selection of Brexit-themed internet memes: the Teresa May/Game of Thrones one, the shadow cabinet resignation bingo one, the MEP face-palming at Nigel Farage being rude one. The kind of editorial fluff that unpaid, overqualified interns are employed to compile from an easy hour online for the ‘and finally’ or ‘from the web’ corners of a newspaper – one that actually has to earn its keep every day or week – takes a starring role in the launch issue of The New European. Pages 8 through 11 carry what those in publishing usually call ‘nibs’ – 50-word articles – in a column all the way down the left and right hand sides of each spread, the purpose of which is not explained, but seems to be a roll call of interesting things that have happened around the EU. Some are genuinely interesting nuggets for post-work drinking banter. I now know that in The Netherlands, national carrier KLM has developed a trolley that can dispense draught beer at high altitude, but has not yet received the necessary permission to use it. Then there are irrelevant factoids such as German band Beginner launching its international tour.

Towards the back half, after its slew of superstar columnists where most editors think their readers are starting to get weary, is much of the ‘celebrating Europe’ stuff you can flick through half-asleep on the Tube. It’s much more magaziney than newspapery. There’s a page devoted to a photography competition seeking images of Europe; a spread devoted to “What’s on in Europe”’; a piece by young journalist Josh Barrie – he has no byline and I’d never heard of him, but Twitter says he’s online editor for Town & Country House – about his jaunt around some of Europe’s more quaint backpacking attractions way back in 2011; a spread of smart-phone photos taken last week in Glasgow; a piece about watching the footy in Prague and a listicle of the ten best cafes in Paris. A sort of Metro newspaper for the metropolitan, Eurostar and EasyJet generation (that’s me), but not just the social media generation, suddenly giving-a-shit 48 percent, then? Yes, but then a map of The New European‘s subscriber base tweeted by Kelly suggests that subscriptions have been taken out in very many non-metropolitan areas of Britain, including Plymouth, Norwich, Chester, the Kent coast and south Wales.

The New European’s subscriber map. Photo @mk1969 (Editor Mark Kelly)

Columnists Suli Breaks, Ajit Niranjan and Jonathan Freedland are saying the same thing from different perspectives. Wouldn’t it have been a better use of their copy to create a big four page feature comprising all three articles about the topic of the relationship between Remainers and Brexiteers, and how and why Remainers can and should reach out to them, to lead the way forward, whatever your background? That could have been a strong and diverse cover, a call-to-arms. But instead – surprise! – the white, middle aged, famous media type gets the first spread on page 4 and the not-white, younger, less established writers saying the same thing languish together on page 19.

Demonstrating integrity

Inconsistent use of and incomplete bylines is poor practice and it means I can’t tell sometimes what is what, so integrity is called into question. Some articles have detailed bylines (Jonathan Freedland; Dr Paddy Hoey, Osman Ahmed) and others carry nothing but the author name. So I can’t tell if the pieces on pages 8-9 are letters sent in by concerned and opinionated readers, or commissioned articles by journalists? Both have the email address letters@theneweuropean.co.uk sitting directly under the author names. I don’t know if this is saying that these are independent opinions sent in by readers and the editor is inviting more, or if it’s saying that these are articles written by journalists and the editor invites readers to respond. The first on the spread, written by Angela Jameson and spanning both pages, is about jobs being under threat in Hull because agreements to build wind farms have been put on hold after the Brexit vote. Who is Angela Jameson? Why does her letter deserve almost two pages? If she is writing a letter – not a column – she must be a business leader, perhaps a consultant? Nope! She’s another hack (sorry – ‘expert’). The second letter/article, about English Remainers who are threatening to move to Scotland, is by Mark Nicholls. Who he, you ask? Yup! A freelance journalist who runs a news and features agency. I literally have no idea what either the title or the stand-first on a piece about the Tour de France piece means so I haven’t been persuaded to read it – and who is Michael Bailey, the author? He’s one of Archant’s sports writers, Twitter tells me – hence the subject matter. So say that in his byline!

This authenticity thing. I have no problem with journalists writing things – if I did I’d be out of a job – I just want The New European to be clear why people are writing things because context is so important. There are articles on things like the idea of reintroducing Lynx to rural Britain, on something called Tauromania, and a piece by a bloke called Steve Snelling about the Polish in Britain that only state the author name and no information that explains why it is them writing and not some other hack.

Perhaps this is not poor design and signposting, but just that Archant and Kelly don’t think readers care much who is writing or what their legitimacy is. I’m coming at this as a curator of communities around magazines and their brands, where enfranchising your readers by connecting them to your contributors – making them your contributors too – is the goal. You need to demonstrate legitimacy and transparency to deliver that, which means crystal clear and complete contributor bylines, stand-firsts, making sure readers understand who they’re reading and why and how they can get in touch to agree or disagree with these views. Legitimacy can be found in famous contributor names, but Miranda Sawyer’s views on Brexit are no more valuable than my mum’s just because I know her name. She isn’t an expert. Repeat after me, everybody: hacks are not experts. They collect, collate, understand, distil and communicate other people’s experiences and opinions in ways their readers can access, enjoy and learn from. They are not experts when it comes to a newspaper talking about Brexit and calling the section where much of this comment is housed ‘Expertise’ is just pushing it a bit too far. Calling the section for James Brown’s piece ‘Eurofile’ comes across dated – I get the play on words but wouldn’t something like ‘Citizen’ or ‘The European’ be a bit slicker and more focused on the person writing than the newspaper acting as a file of stories of people who like Europe? But that is a very personal thing, and section names can cause very intense debates.

Perhaps a newspaper with a four-week life may simply not think like that. But I don’t think life expectancy or medium excuses these simple housekeeping rules on reader experience.

A final whine. The outside back page with 48 facts about something to do with the number 48. Please, no no no. Stop it. It’s screaming ‘we didn’t know what to do with this page’ to me. You want people to pay for the newspaper over the next three weeks, either on the day or by subscription. Stick a house ad there. If someone reads and enjoys the paper and then see on the final page how they can subscribe or share their views on it, they can get on their smart-phone and do it while the mood takes. That page should work harder for the project than 48 things about the number 48, though at least now I know how how old Kylie is.

The New Day, which lasted barely three months and had an apolitical agenda just as The New European has taken, is still fresh in the memory. What was the point? Launching on the back of the Brexit vote result shock but stating that it is not a political paper and will not invite politicians to contribute, nor write about the political processes involved, is a strange decision for a newspaper trying to capture the mood of millions of people who are pissed off about the most important political event for the UK of the new millennium. And please, por favor, bitte, s’il vous plait,  per favore, proszę – Matt Kelly, stop telling people you’re capturing “the zeitgeist” or that you’re being “zeitgeisty”.There is already barely a wet cigarette paper between being British and any episode of The Day Today right now.

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Financial Director: Raising hope for Haiti

2 Oct

British medical charity Merlin won a charity prize last night and their tweeting about it reminded me that I had interviewed its director of finance, Vicky Ennis, in the aftermath of the Haiti disaster in 2010, about how charity finance people lead efforts to respond to major emergencies of that scale. Very much enjoyed researching and writing this article, and speaking with the finance directors from several charities who responded to the Haiti disaster – have a read.

One of Merlin's mobile clinics in Haiti. Photo from Flickr.com/merlinphotostream

One of Merlin’s mobile clinics in Haiti. Photo from Flickr.com/merlinphotostream

The utter devastation suffered by Haitian citizens after the 7.0 magnitude earthquake that struck on 12 January rendered the biggest humanitarian response ever recorded, reports claim. No ballpark figures yet exist, but several billions in individual donations combined with government gifts and a raft of large celebrity cheque signings amassed unprecedented sums, all within days of the event.

Getting it into the country in those first few days, though, proved impossible. Most of Haiti’s infrastructure and banking system are out of action; roads are decimated by mudslides or mountains of rubble from the estimated 280,000 collapsed or badly damaged homes and commercial buildings. And what use is a single dollar bill in a place where the markets, their suppliers and the ports allowing essential imported goods in are destroyed ­ while their proprietors may be among the estimated one million homeless, or the 530,000 dead or injured?

In fact, due to the level of disturbance, the response from UK charities to these challenges was quite literally to bundle up thousands of pounds and wire it to Haiti through neighbouring Dominican Republic. Vicky Annis, head of finance at medical charity Merlin, explains that her team of 12 finance staff had to do just that from its central London headquarters. “It has been quite literally a case of three or four members of my finance team taking £3,000 in cash down to our local Western Union several times a day,” she reveals. “It’s enormously time consuming.” Merlin was one of the first charities that had no previous business in Haiti to land there after the disaster.

David Membrey, acting chief executive at the Charity Finance Directors’ Group, confirms this has been practice elsewhere. “I know in the case of the 2004 tsunami that some charities, in the weeks after the event, were literally sending staff out with rucksacks full of dollars,” he says. “The destruction was so wide there that you could be on a project where there might not be a working bank for a 100 miles. It’s not a long-term solution but it’s a practical one.”

Faith-based charity Cafod’s head of finance James Steel has to employ his skills of persuasion and pull in help from around the business to cover sudden need from finance. Cafod has a financial accounts team, a financial management team and a humanitarian finance team, he explains, as well as donation processing people to call on if it needs extra hands.

Charity FDs say they were not hit with the response for Haiti until between 72 hours and the first week after the event, once trustees and directors (including the FDs) had decided on their level of response. Says Steel: “In early February, while Haiti was going on, we had external auditors going through what we’d done in Southern Sudan and Mozambique with a toothcomb. You’ve got to balance that over the life of a response to something like Haiti,” he says. “It brings a level of complexity into the organisation.”

In and out
While the process of getting money in the door is now automated thanks to online and text donations, FDs in even large charities found themselves struggling to upscale dramatically in the first days after Haiti to get it out again. It meant diverting finance staff from modest teams away from their usual duties, diverting funds to hire temporary staff or persuading other managers to get their non-finance volunteers mucking in.

“This office was full of volunteers processing credit cards on the weekend, because suddenly we had this massive surge and we had no time to plan around it,” says Joe Ghandhi, head of finance for Médicins Sans Frontières UK. “I was ringing our 0800 number first thing every morning to test the response time and some of our country websites had real bandwidth issues, so we had to switch things around.” MSF already had around 800 staff in the field on a long-term programme.

Cafod’s Steel concurs. “In the 2004 tsunami appeal we couldn’t change the message on our freephone donation number. It was Boxing Day and I was in the office trying to change it, but we couldn’t get hold of anyone,” he says.

Charity FDs are learning valuable lessons around how to plan for these problems that really hamper the increasingly common emergency responses they have to make.

In other, ongoing ‘silent’ crises such as the conflict and mass displacement of people in Jos, central Nigeria, or responding to the immediate needs and longer-term rebuilding efforts in Sumatra after last September’s earthquake, getting funds to disaster-struck communities on a regular basis proves difficult, too ­ and is part of the FD’s remit.

Cafod’s Steel reveals how far down in the detail FDs mobilising resources can be. “We’re making quite a big response in Jos and for that we had very immediate spending needs. We decided on the Friday that we needed money to respond and it got there on the Monday” ­ good going, given that getting money into rural Nigeria is difficult and we work with a lot of individual clinics there, says Steel. For Haiti, Cafod sent four people immediately, “but we were short on dollars, borrowing them right, left and centre, making sure they’d got credit cards: small things, but just making sure that they had what they needed.”

Informed response
MSF’s Ghandhi highlights the communication skills needed from FDs in crisis response. His finance function worked closely with its fundraising and press departments on the Haiti appeal to stay informed about what campaigns were running, as it has a direct impact on his mandate. “Because of that, finance knew early that we had a fantastic response from the public so we then had to shift quickly to asking donors to donate for our general programmes rather than specifically for Haiti,” he says. This fulfils its other longer-term projects and uses money wisely.

Keeping track of what is spent where, as well as building an overall plan to rebuild communities is something the charity FD needs to balance. Cafod’s Steel says that 72 hours after the Haiti earthquake his finance team were finalising areas of responsibility for spending mechanisms and for setting a framework for accountability.

“You need to establish mechanisms for receiving money, setting up o utsourcers which can be complex, then working out how all of it is going to get back into your database and how it is going to be accounted for,” he says. “You’re sending people to Darfur and you have to meet their pension and payroll needs.” Merlin’s Annis designated an additional finance person to manage everything to do with Haiti from the UK and assigned a specific code to all costs arising from the response, to make accounting for it simpler.

“Now it’s about bringing in all our financial procedures and controls so we can understand where we are for developing a full budget, having that reporting on cashflow and having an idea on a weekly basis what cash is going to be required in the field, and managing how we transfer the money on a much more regular basis.”

She adds: “We need to identify our Haiti spend against different donor projects and split them down into project level, start reporting against it and understanding where we are on our budgets.” Merlin will place a permanent country FD in Haiti for the next six months to oversee this reporting process.

MSF’s Ghandhi will need to finance the rebuilding of its three field hospitals, all of which were badly damaged in the earthquake. “I have to talk with our central team about how much we can spend over the next three years, say, to fix them ­ so our campaigns have to match that amount.”

Against the backdrop of what corporate FDs have had to manage recently, the work charity FDs have done to respond to Haiti and other disasters is impressive. “It can be difficult to scale up in a very dramatic way ­ something that no one in a sane world would do ­ but you just have to do it,” says Cafod’s Steel. “There is the supply chain management, procurement is very difficult and there is all the political stuff.

We had a briefing in early February from someone who just came back from Haiti and his message to us was, ‘why send tents when the rainy season is coming, can’t we get into semi-permanent construction’. The logistics of getting materials into the country with no infrastructure make that absolutely impossible.” At some point, though, they’ll just have to.

The charity FD and disaster response
In regular contact with charities across the UK, the Charity Finance Directors’ Group has the big picture view on how the sector responded to Haiti and some chronic issues charity FDs face in disaster response. Acting CEO David Membrey spoke with Financial Director about his observations and where he saw the troublespots for FDs.

• Logistics
“A good charity FD really understands the operational networks and logistics of the charity better than anybody else. They should know what is where and they should understand the systems that will tell them how many blankets they’ve got at their depot in Wigan, for example. If they don’t, they should know where to get it.”

• Sector-wide collaboration
“If you don’t have a programme in Haiti you don’t have to set one up overnight: you piggyback on somebody else. That happens a lot in the charity sector as they all know each other and often get together, so can share resources. They can do more if they share resources than they can if they work in isolation and there’s no point ordering the same thing for the same area.”

• Disaster planning
I know of some charities trying to set up a network of warehouses and facilities to house goods for emergency response across the world, rather than mobilising stuff from, say, Europe to be flown to the Caribbean or Asia at a moment’s notice. The next disaster of Haiti’s kind is not likely to be in London, so why keep all your stores there? FDs of charities need to think about this and I know they have done.”

• Donors should listen to the FD’s funding decisions
“Donors to the 2004 tsunami wanted to see immediate results and it was difficult for many charities to reconcile that with the need for long-term planning. The fact that a lot of that money wasn’t spent after two or three years was viewed negatively, but charities wanted to make a lasting difference, to rebuild homes so they won’t fall down the next time. That is a very real issue for FDs: they have to say, ‘no, at the moment the bank is the best place for it’.”

Cosmopolitan magazine: WLTM my dream job!

21 Sep Cosmopolitan magazine, October 2012

I’ve had a piece published in Cosmopolitan magazine (UK edition – October 2012 coverdate). Have a look at the PDFs – I can’t add the copy here as I usually do because the story is broken into various points of entry on the page, so to list it as paragraphs would not work.

Cosmopolitan magazine, October 2012

Cosmopolitan magazine, October 2012

Campen FO: How the Dimbleby family is working through its cancer charity funding crush – and the question of future family involvement

4 Sep

This has just been published by Campden FO, the magazine for super-wealthy business families and their charitable foundations across the world.

For two generations, the name Dimbleby has been associated with British journalism. The dynasty was founded by Richard Dimbleby, who made his name as a World War II reporter, sending the first broadcasts from Belsen. He was later famous for anchoring television broadcasts of the coronation of Elizabeth II and the state funerals of JFK and Winston Churchill. Two of his children, David and Jonathan, are today household names for their work on televised election coverage and political programmes, while two of his grandchildren, Joe and Kitty, are also journalists.

All very well for the pages of high society gossip magazines, you may think. But there is a largely unknown side to the family. For almost 50 years Dimbleby Cancer Care, a charity founded by the family following Richard’s death from testicular cancer, has been quietly partnering with major cancer charities and leading cancer centres to fund critical research projects. It also works with the UK’s National Health Service to run free drop-in services at two London hospitals, Guy’s and St Thomas’, for cancer patients and carers.

David Dimbleby, best known in the UK for presenting TV coverage of general elections and other major political programmes on the BBC

David Dimbleby, best known in the UK for presenting TV coverage of general elections and other major political programmes on the BBC

The Dimbleby family has dominated the board of trustees since inception. David (pictured, right) is chair, although Jonathan will succeed him in the role at the end of this year, when David will become a regular trustee. Their younger brother Nicholas, a sculptor, is on the board, while Joe and Kitty, David’s son Henry, founder of the healthy fast-food chain Leon, and daughter Kate are also family trustees. Other family members have come and gone.

Enthusiasm is not lacking. But money is. Times have changed since DCC was founded. When Richard died in 1965 the family asked people to send money so they could start a charity. They did, in envelopes stuffed with cash. But these days things are done differently, of course, and the long-term economic slump in the UK and Europe is forcing the family to rethink the way it operates. The main source of income, an endowment, is running out of cash after 46 years, while philanthropic giving is down.

DCC is run on a shoestring. Its two drop-in centres run on just £220,000 (€255,000) each year. The family’s particular corner of research – ways to help cancer patients better bear treatment, on imaging techniques to identify appropriate treatments, and on end-of-life care – doesn’t attract big money. “We’re exactly in the catch-22 of a small charity,” says Jonathan. “We can do very important work very cheaply, but because we don’t have the funds to make a huge noise about ourselves and employ fundraisers in large numbers, or spend a huge amount of money before we pull in a large amount of money, it’s quite difficult for our voice to be heard.”

The fundraising and communications expertise that DCC needs can’t be supplied by the family trustees, so they are considering bringing in outside experts. The charity is, says Jonathan, “in a state of flux”. The NHS is too, with talk about privatisation rife, and the family doesn’t know how this might affect its relationship with the hospitals. But money is the big, immediate problem. “As a family we’ve had to confront some uncomfortable realities,” says Jonathan. “We’re at a point where we have to think very hard about the best way to generate funds, and therefore the best people to be intimately involved in that. Of course this includes the family, but it must also mean other people from outside who are willing, able and have the knowledge and experience to make things happen.”

Jonathan Dimbleby, journalist and TV presenter

Jonathan Dimbleby, journalist and TV presenter

Having a board of trustees dominated by the family could be a problem for some big donors who focus on professional boards and shun any hint of nepotism. Jonathan (pictured, left) is alive to this – and philosophical about the fact that the next generation members might not be the right fit for the future. “We like to see our next generation as free and independent spirits,” he says. “One of the difficulties with young people who have their own jobs and are busy is that they just can’t find the time they want to put into a project like this, no matter how important they regard it as being. They’re travelling, they aren’t all in the same place at the same time, or their families need their time. It’s not easy. But I think the important thing is the commitment of trustees, more than anything else. It’s just romantic to imagine that because DCC was started by us it is eternally, generation through generation, run by us.”

The family did try out an external director in Malcolm Tyndall, who joined the DCC from a fundraising role with the UK’s Home Office in 2008. But when he was headhunted away two years later, the family decided not to replace him. “In retrospect we didn’t have enough time to decide whether or not a director from outside the family was a good thing,” Jonathan says. “My instinct is that to justify that post in a small charity where the principal trustees are closely involved, you have to be operating on a scale that we are not yet at.” Now, he says, they not only want this, but they need it.

“I personally wouldn’t want a situation where we have no family trustees,” Jonathan says, “but equally I don’t want a situation where merely because you are part of the family, you are in a controlling position. The work is what matters, and the funds, the delivery of the services, and the research.” That means that the board has to have people with the right calibre, and able to make a big enough commitment. “My father would not want it to be a mausoleum for his memory,” he adds. “He would want this work to progress, for his offspring to want to achieve that as effectively as possible.”

The plaque in the BBC London headquarters, commemorating Richard Dimbleby, in whose name the Dimbleby Cancer Trust was founded by his children

The plaque in the BBC London headquarters, commemorating Richard Dimbleby, in whose name the Dimbleby Cancer Trust was founded by his children

DCC – a quick view
The DCC’s service-delivery work is delivered through two NHS hospitals, St Thomas’s – perched on London’s River Thames opposite the Houses of Parliament – and Guy’s, nestled behind London’s newest landmark, the Shard.

The charity also runs three funding streams:
The Dimbleby Cancer Care Research Fund awards up to £250,000 each year, funding research into the care needs of cancer patients and is one of the very few charitable operators in that field.

The Richard Dimbleby Chair of Cancer Research, which through an endowment to King’s College London supports the Dimbleby Laboratories, is working on imaging techniques to identify the most fitting treatments for an individual patient’s cancer.

The Dimbleby Marie Curie Cancer Care Research Fund, a partnership with Marie Curie – one of the UK’s biggest cancer charities – funds £500,000 annually in research on end-of-life care, though this will end in 2012.

Where’s the money?
Despite the economic climate, charitable donations have not collapsed in the UK or the US. “In general those who give tend to have finances that change on a longer-term cycle,” says Professor Cathy Pharoah of the Centre for Charitable Giving and Philanthropy at Cass Business School. Some foundations have chosen to use up their money because they are worried that the cash, whose performance is tied to the market, is at risk. Some philanthropists have actually increased their giving because there is nowhere good to invest their money. Some charities struggle for other reasons. There is a market for charitable giving just like there is a market for anything else, and cancer charities with a strong focus – a brand, you might say – tend to attract more money than generalist ones. Those specialising in particular kinds of cancer, such as breast, skin or prostate, appeal more. “Unless it has a strong, distinct profile, then a cancer charity is going to have problems attracting money,” Pharoah says. There are two ways for smaller charities like DCC to attract more money, she adds. Firstly, they can merge with a larger one. Or secondly, they can leverage their networks and contacts to attract large donations from foundations. In the case of the Dimblebys, with their contacts and family name, that might be their best bet.

Kitty Dimbleby, one of the next generation of the family leading its cancer charity

Kitty Dimbleby, one of the next generation of the family leading its cancer charity

The view from the next generation: Kitty Dimbleby
Kitty Dimbleby (pictured, left), 32, is the youngest member of the DCC board of trustees having joined at 18.
On her reason for joining DCC As long as I can remember my father went to DCC meetings; once or twice they were even held in our family home. I would sneak downstairs and listen through the banisters, not really sure what was going on but knowing that one day I wanted to be part of it. As a child, teenager and young adult I was in and out of hospital with health problems and I met many young people living with cancer: before I turned 20, I had attended two of their funerals. It was, I am sure, this greater awareness of the illness and our mortality that compounded my childhood desire to help.
On being a teenage trustee I became a trustee at 18 but soon realised I was too young and had nothing of any use to bring to the table. I was galvanised to sign up again a few years ago when a friend was diagnosed with cancer. Now in my early 30s, having worked for a few years for the military charity Help for Heroes, I feel I could finally be useful.
On what the next generation brings to the table I think the younger generation brings something different to the charity – a fresh perspective and passion for the cause, which reignites that of the older generation. We have been able to introduce more modern methods of fundraising, such as social media. Although it is sometimes hard to get a word in, my father and uncles do listen and appreciate my input. For the charity to continue and move forward it needs us to be involved – much as they would like to, dad, David and Nick cannot keep working forever.

BBC News: How China’s growth ambitions drive global commodities

24 Aug Opal mining in Coober Pedy, Australia. Nothing whatsoever to do with this article except it's a form of mining, and a photo I took myself. 2007.

My latest news feature for BBC Business News Online– published today.

A bit of blather first. What’s kinda funny is that I visited a mine this week – I was at Big Pit in Blanaevon, Wales, on Monday. I’m a big, big fan of mining and visiting mines: I’ve been to the salt mines in Austria, iron ore mine in Broken Hill, Australia, opal and gypsum mines in Coober Pedy, Australia, silver and tin mines in Bolivia and now a coal mine in Wales.

I think it’s fascinating and important to see how the resources we never think about but that shape our lives come out of the ground, and to know the conditions the people who haul it out the ground have had to endure.

I got lucky on the Big Pit tour because one of my fellow tour-takers is a mining engineer having worked extensively in South Africa, and he told us that it is still law in South Africa that every mine must still have a canary. In this technological, safety-savvy era I’d have thought that method of checking for gas build-ups was long gone, but sometimes the simplest, cheapest methods are the best.

On my mine tours I’ve observed every level of safety preparedness – from world-class cutting-edge super machines, down to nil. Right now as you read this on your laptop or mobile, children are mining the raw materials in Latin America, Africa and Asia that will eventually be made into the components that make up your laptop or mobile. And the chances are, they are not wearing any of the safety gear you’d hope, the shoes and clothing you’d hope for very hot/very cold/very wet conditions, may not have access to water or sanitation or proper ventilation as they work, and are likely to be missing out on both education and decent pay and rights. (Let’s not even start on the topic of why children are working at all). So mining is worth reading about as we should not walk through life ignorant of this: though these are not issues I had a chance to explore in the piece below, you can Google all of that stuff and learn at will. Or go and visit a mine.

One more quick note. If you’re interested in the big cheeses running big mining firms, I interviewed the finance director of Rio Tinto, the FTSE-100 resources giant, a couple of years ago. You can read that interview here

And here’s the BBC piece.

Australia’s resources minister, Martin Ferguson, has caused a stir with his assertion that the country’s mining boom, one of the biggest drivers of its economic growth, is “over”.

Opal mining in Coober Pedy, Australia. Nothing whatsoever to do with this article except it's a form of mining, and a photo I took myself. 2007.

Opal mining in Coober Pedy, Australia. Nothing whatsoever to do with this article except it’s a form of mining, and a photo I took myself. 2007.

As he acknowledged, the state of the global economy has depressed demand for Australia’s minerals and led to sagging commodity prices.

But those commodity prices have not just taken a tumble in Australia.

They have fallen globally, seemingly because Chinese economic growth has finally started to slow.

That is in part because European demand for its products has slowed. So China has started to produce less of those products, and needs smaller quantities of raw materials such as iron, copper, zinc and gold to do so.

Could Mr Ferguson’s call on Australian commodities also be true for the global commodities market at large?

Exit the dragon

You know how you so frequently see “Made in China” stamped on the back of your toys, phones, in clothing labels, and on your food packets?

To make that volume of products that quietly dominate our lives, China has had to suck in a huge amount of the world’s commodities.

According to the International Monetary Fund (IMF), in 2010, China consumed 40% of the world’s base metals – aluminium, copper, lead, tin, zinc or nickel, all widely used in manufacturing the gadgets and goods we use every day – and 23% of the world supply of major agricultural crops like wheat and corn.

And to build the cities, roads, ports and factories needed to produce that stuff, China has staged a construction boom – upping its need for commodities even more.

But Chinese policymakers have decided it is time for their economy to move away from that.

Thomas Helbling, a research chief at the IMF, said that China’s latest five-year plan for growth “strives to move the economy from investment- to consumption-driven growth”.

In other words, it wants to stop pumping cash into importing commodities and building infrastructure, and focus on selling products and services to its growing middle class instead.

Changing it up

As China buys less raw material, the effect of its dominance becomes apparent and global prices are now going down.

That is having an impact on economies as a whole, as Australia’s Mr Ferguson suggested.

Australian mining giants recently disappointed the country’s politicians. One, BHP Billiton, said it would put on hold its Olympic Dam extension project, reportedly worth as much as $30bn, which it was hoped would create 25,000 jobs in South Australia.

Some thought BHP Billiton’s decision was evidence of China’s change in growth expectations beginning to impact global demand, and other economies as a whole.

And having been protected from global recession by their mining boom, Australians do not want to hear that this is now under threat.

But BHP Billiton said it thought shrinking commodities demand would stabilise in 2013, including from China.

Ruchir Sharma, head of global emerging markets equity at Morgan Stanley, told the BBC that China’s economy was simply maturing, but that resulting lower global commodity prices could be good for emerging markets.

“China is moving to a much lower growth trajectory,” Said Mr Sharma.

“It is maturing, just as Japan did in the 1970s, [South] Korea in the 1980s and Taiwan’s economy in the 1990s.

“It has become too large to grow that quickly, and it is becoming less commodity intensive.”

Mr Sharma thought lower commodity prices would benefit a lot of developing countries such as Turkey and India, and even developed countries including the US.

And he added that the price of oil was more likely to fall than to keep rising, in his view.

“If China’s slowdown is managed right, it will be OK,” he said.

Supply and demand

One thing that has kept commodity prices high has been the lack of supply to meet a huge growth in demand.

The demand has been fuelled by China’s stellar growth, as it has become a major producer of the mobile phones and cheap T-shirts we use daily.

Commodities businesses all over the world have grown quickly off the back of that demand, making investments in mines, oil exploration, and boosting soybean production in Brazil, among other things.

But those investments often take time to bear fruit.

So commodities companies such as BHP Billiton are now deciding that the reduced demand for their products from China make it harder to justify investing in those projects for the moment.

For example, Jim Rodgers, co-founder with George Soros of the Quantum Fund, told the BBC that a lack of farmers played a starring role in a recent spike in food prices – grain, corn and soybean being critical parts of the food supply chain.

“The main determinant to commodities is supply and demand,” said Mr Rodgers. “We are running out of farmers because nobody has gone into agriculture for the past 30 years.”

The US, France and Mexico have said they may convene an emergency meeting at the end of August to address the high price of grain.

But Mr Rodgers does not think commodity prices will decline.

“I don’t see any significant new supply to bring this bull market to an end,” he said.

From my archive: Finance directors still need convincing on the value of social media

7 Aug Hey, it worked for Mark Zuckerberg...photo courtesy Flickr.com/Matt Debouge - http://www.flickr.com/photos/mattdebouge/6916612853/

While I’m waiting for my next two freelance articles to hit the news-stands, I found this from my archive to share. Looking back it’s amusing that I chose to write this, given that until that time (Christmas 2010), I was a Twitter hater and wrote about it on more than one occasion. But I’ve found as a freelancer that it has actually proven profitable for me – literally – to have my Twitter profile and to update it regularly. I have found work through it. But finance directors see it differently as the piece below found.

Have a read.

Donald Rumsfeld once said there are known knowns, known unknowns and unknown unknowns. But that was one year before the birth of LinkedIn, three years before Facebook went live and five years before Twitter emerged.

Now, the champions of social media networking would have you believe that by plugging in to these and other platforms, known knowns can be challenged – as the Wikileak cables have shown – while known unknowns can become knowns. And anyone who does not want to know who singer Lily Allen hates this week might say the average Tweet is an unknown unknown that would have been better kept as such.

Hey, it worked for Mark Zuckerberg...photo courtesy Flickr.com/Matt Debouge - http://www.flickr.com/photos/mattdebouge/6916612853/

Hey, it worked for Mark Zuckerberg…photo courtesy Flickr.com/Matt Debouge – http://www.flickr.com/photos/mattdebouge/6916612853/

Celebrity gossip aside, businesses in every sector and all over the world, along with governments and even regulators, have flocked to social media networking sites in the last couple of years. As marketing budgets have shrunk, it has emerged as a free or cheap platform on which to promote known knowns – products, services, opinions and expertise – and understand known unknowns: what their rivals are doing, what their clients want from them, what the next big thing is and what the market thinks of them.

But a list of Twitter accounts run by FTSE-100 companies published by Lance Concannon, a social media consultant, demonstrates how rudimentary many of those efforts still are. The list is littered with that have been updated a few times and then abandoned. But of those that are actively maintained, the value seems clear. BT’s @btcare Twitter is an extension of its customer services operation with 9,623 followers, who seem to use it when they are tired of being on hold with their call centres. Customers tweet them with complaints about billing and connectivity and appear to be answered by real people – and answered swiftly. It makes innovative service delivery into a public relations campaign.

Burberry chief executive Angela Ahrendts retweets when others mention Burberry products, throwing a bit of stardust in the direction of her followers by way of a mention while simultaneously demonstrating how vibrant and active the recently-revived brand is across the world.

Where’s the value?

For finance directors, though, using social platforms does not mean they understand the value of social media.

A survey by Financial Director, taking the views from 256 FDs and CFOs in December 2010, found that it remains largely an unknown unknown with FDs on the topic falling into two distinct camps: the avoiders of social media who are deeply cynical about it, and those who say they have had tangible return on investment (RoI) from it, but can’t necessarily quantify that return. Of the latter group, five percent report a “significant” RoI on social media and 16.4 percent say they have seen positive RoI.

Asking the question again but differently – to double check how much evidence there really is of a return – 12.5 percent said they had seen other tangible non-RoI evidence of social media having a clear business case.

But emotions run high when FDs who say they do not use any social media are asked why. About half of the FDs that took the survey use one or more social media networking platforms. Those that do not often see no reward for the time needed to update them and their immediate nature.

“Anyone who is constantly tweeting cannot actually be doing anything other than typing – so what have they to Twitter about?” asks one. Another thinks that “those who have time to use social networking sites don’t have serious jobs that absorb all available time. There is no return for the time taken updating them.”

Others see it trying to supercede face-to-face business and in the process is attracting the wrong type of interest.

“Personal relationships are everything. Any electronic correspondence is a poor substitute for shaking someone’s hand, looking them in the eye and talking to them,” says one FD. “I don’t think they add value; you get a lot of unsolicited contacts.”

Some see online networking as lacking the confidentiality that drives business deals, particularly for finance.

“Finance is about confidence and confidentiality, which is not a great mix with a broadcast system like Twitter or an intimate one like Facebook,” one FD thinks. “Real networking is something else entirely.” And in the case of Twitter and Facebook, their popularity among teenagers erodes their credibility as a business tool.

“My daughter has set up a Facebook account for our cat. It’s not exactly serious,” one CFO says. That is a fair point and one that means many businesses make blocking access to social media networking sites company policy, allowing only their communications teams to drive company accounts that are so dry in their delivery, they may as well not exist – because no one is listening.

All talk and no teeth? Photo courtesy Flickr.com/petesimon - http://www.flickr.com/photos/petesimon/3365095019/

All talk and no teeth? Photo courtesy Flickr.com/petesimon – http://www.flickr.com/photos/petesimon/3365095019/

“LinkedIn is great but Facebook and Twitter are not really much use,” one FD reports. “Very large companies can use them for public relations, but finance is confidential; ‘the company is having a fantastic quarter’ is not really appropriate for sharing.” In the eyes of many FDs, Twitter is just noise, blather or gossip.

LinkedIn rules

Contrast those comments with the statistics our survey conjures up. Of the half of respondents that use one or more social media networking platform, almost all are in possession of a LinkedIn profile and 63 percent have a Facebook page. Even more surprisingly against the comments we received about its value, 37 percent have a Twitter account. In terms of the time they spend on them, a sizeable 25 percent use these every single day while 33 percent access them twice a week.

And these are not individuals that have been forced to start tweeting by their companies. Asked what the motivation for setting up these accounts is, most FDs told us it was purely a personal decision: just five percent were compelled to do so by someone senior to them at work.

Those using these platforms in the finance world have found that it is helpful in terms of their career, building profile and connections, as well as for locating and checking the backgrounds of prospective team members. Users of Financial Director’s LinkedIn group start and drive vibrant discussions on a range of issues affecting them, seeking peer advice and experience to make ever more informed decisions.

Businesses that maintain a block on employees accessing social media may be making a mistake. Of the three most recent uses of social media we asked them to share, 17 percent of FDs said they were researching rival companies’ products and services, and 20.4 percent said they were checking out the background and contacts of prospective senior finance employees. That is of immense value to any business. The third use was responding to requests to connect with headhunters or other FDs they view as helpful contacts, either to expand their network generally or because those individuals may prove able to help them into their next role. Indeed, 20 percent had received what they saw as a genuine and credible job offer through relationships forged on social media networks, while one FD had found his current role through a LinkedIn contact.

“LinkedIn is routinely used in my organisation for recruiting. I was recruited through my LinkedIn profile – I could not provide a better endorsement of its power,” he tells us.

Among those comfortable with it, social media networks are providing another way to expand an FDs’ influence and contacts, either by linking up with people they have met in person or with a mutual connection, as a platform to meeting them in person.

Nearly 40 percent of those using social media networks use them to raise their profile as an FD and a further 26 percent use them to get advice from their peers – in the same way a traditional meeting would, but in some cases with people it may have been tough to get an audience with or with those they simply may not cross paths with otherwise.

Old boys’ club

But the problems with social media persist. Some worry that the mode of connecting it provides is a retrograde move, not progress.

“Using a social networking site for recruitment would be divisive and potentially discriminatory. It smacks of a different type of ‘old boys’ club’, ” says one finance director. Another calls networking on social media sites “the lowest form of personal braggadocio.”

And what if someone takes umbrage – or worse, calls their lawyers – over your perfectly innocent tweet? The Independent reported last November that trainee accountant Paul Chambers was convicted of sending a menacing electronic communication having tweeted, in jest, that he would blow up Doncaster’s Robin Hood airport if it did not re-open after heavy snow. He later said he had lost his job as a result.

In the US, Computerworld.com reported last July that an IT staffing company had sued a former employee for violating the terms of their non-compete agreement by connecting on LinkedIn with a number of the company’s staff. It said that she had done so on behalf of her new employer. “If Ms Hammernik could be sued for striking up a conversation at a bar with an employee from her former employer, then she can be sued for striking up a conversation with that same employee on LinkedIn,” a reader commented.

Essentially LinkedIn

As for demonstrating the value in social media, LinkedIn comes out the clear winner. Otherwise, the pictured is mixed. Nearly seven percent of FDs responding to our survey said that they view social media as essential to business, 43.5 percent said it was useful sometimes and 28.5 percent said it was not that useful. Twenty eight percent said it was useless to FDs.

One FD reports that his last three uses of social media platforms were to make contact with a former colleague who works for a company his business is targeting for sales – using the contact to get an audience with that target company – to get back in touch with a former client and invite them to lunch – as a way to get them back in his active network – and to search the contacts of his connections for any potential target clients and shortcuts to introductions with them.

That is nothing you would not hope to do offline; it is just that these platforms make it possible and fairly discreet if done well. But that requires a time investment and a willingness to go on the learning curve – and without the hard numbers to report the usefulness of social media, many more FDs than not may find that the concept remains in that unknown unknown category.

BBC News: amid the Olympic security blunder, who are G4S anyway?

13 Jul This is one of the UK Government's posters to promote tourism in England while the Olympics is on. My self-hatred as an English person requires me to show you. Flickr/The Department for Culture, Media and Sport

I wrote a mini feature for BBC News online (front page for a while!) yesterday as a sort of primer for people reading a lot about how crap G4S are allegedly, but not actually having ever heard of G4S before. In short, G4S is a security firm that has a contract with the British government to train and supply 13,000 security staff to the Games and all the venues it’s being held in. But the scandal is that this week is was revealed they can’t supply all those people in time for the Games, so at the last minute 3,500 British soldiers have been drafted in to do it instead.

A great story to develop while the oncoming traditional summer story drought gets bedded in (only a shame it doesn’t feel like summer) that touches all the live topics in the UK right now: people’s thoughts on the incompetence of government and ministers, political game playing, greedy companies looking to make coin of government incompetence, and the hype from Britain’s biggest international event in decades.

Read on.

This is one of the UK Government's posters to promote tourism in England while the Olympics is on. My self-hatred as an English person requires me to show you. Flickr/The Department for Culture, Media and Sport

This is one of the UK Government’s posters to promote tourism in England while the Olympics is on. My self-hatred as an English person requires me to show you. Flickr/The Department for Culture, Media and Sport

“Securing Your World” is G4S’s maxim. But it looks like the world’s largest security firm has failed to secure its own world, at least as far as London 2012 is concerned.

Just fifteen days before the start of the Olympic Games, it has had to admit that it cannot supply all of the 10,000 security staff to Olympic organiser Locog it is contracted to.

As a result, 3,500 soldiers will stand in for G4S, at a time when the British Army is undergoing large-scale redundancies.

Who is G4S?

G4S has 657,000 employees in over 125 countries and makes its money from companies and governments outsourcing “businesses processes” – placing security staff where there aren’t enough police, for example, or prison officers where those are lacking.

Government contracts accounted for 27% of its £7.5bn turnover in 2011, and it had hoped to have a bumper 2012 as a result of its work on the Olympics.

“We protect rock stars and sports stars, people and property, including some of the world’s most important buildings and events” is how it presents its business – security made sexy, almost.

But G4S has run into difficulty with high-profile contracts before.

Last October inmates in Birmingham Prison, under G4S’s management since it became the first British prison to be transferred into private control, were locked in their cells for almost a day after a set of keys fitting every cell door went missing.

G4S runs seven prisons in England and Wales and is eyeing new business as police forces, under budgetary pressures, are looking to out source to companies like G4S.

Soldiering on

G4S is contracted by London 2012 organisers Locog to supply 13,000 staff to the Olympics.

G4S is not saying why it cannot fulfil the contract. It simply issued a short statement saying that it has almost 4,000 people at work across 100 Olympic venues and another 9,000 going through the final stages of its “extensive” vetting, training and accreditation process.

Now 3,500 British soldiers are to be deployed at two weeks’ notice to fulfil G4S’s pledge to keep the games safe, and during the time many of them had planned to take their summer holidays.

Keith Vaz, Labour MP and chairman of the Commons’ Home Affairs Select Committee said G4S had “let the country down and we have literally had to send in the troops”.

The question remains as to whether, or to what extent, the security firm will lose out financially.

Home Secretary Theresa May told the Commons that there was a clause in Locog’s contract with G4S that set out a penalty if they did not fulfil their agreed responsibilities, though she said that was a matter between G4S and Locog.

‘Significant challenge’

G4S shares fell as much as 4% after news of its contract troubles emerged.

But Caroline De La Soeujeole, an analyst at Seymour Pierce who covers G4S, said she did not think G4S would suffer financially.

“The share price reaction is overblown as the Olympics contract is a relatively small part of G4S’s revenues,” she told BBC News. “I don’t think profits at the year-end will be significantly affected by this news.”

G4S says that it experienced delays in processing its Olympic security job applicants that have held many back from completing their final checks and starting work.

BBC News online understands that many thousands of young unemployed people had completed the training but then had problems with incorrect employee system logins, or simply not heard from G4S about when they were supposed to start work.

At the time of writing, G4S’s Olympics homepage still said that there were places waiting to be filled at the Olympics.

Another analyst, who wanted to remain anonymous, suggested the way G4S handled the contract was not unusual, but it should have started the process earlier.

“G4S has managed this too tightly [to the deadline],” he said.

“But the government knew that the company would not hire people months off from the Games, that it would ramp it up much closer to the time they were needed,” the analyst told the BBC. “Any other business would do the same.

“The final part of the accreditation process is done by the government.

“One cannot start work until they have completed that. It’s a bottleneck.”

In March, the Public Accounts Committee said it was “particularly concerned” that Locog had asked G4S in December 2011 to supply twice the number of security staff it originally agreed to, trebling the cost of the contract from £86m to £284m.

It said that Locog and G4S faced a “significant challenge to recruit, train and coordinate all the security guards in time for the Games”.

Margaret Hodge MP, chair of the Public Accounts Committee, said it was “staggering that the original estimates were so wrong”.