Smith vows to repay taxpayer for blue movies30th March The Independent The husband of Jacqui Smith, the Home Secretary, made a shame-faced public apology to his wife yesterday – but not to the taxpayer – for claiming the cost of watching two pornographic films on parliamentary expenses. The leak of Ms Smith's parliamentary expenses contained a wealth of detail that will fuel claims that MPs are milking the system to furnish second homes. Ms Smith has designated her Redditch property, where Mr Timney and their two sons live, as her second home, entitling her to claim allowances for it. She has claimed more than £150,000 for the cost of running the home over the past five years.
Cut in maternity leave to give fathers more time off30th March The Times Statutory maternity leave should be cut to six months and new paid leave given to fathers, a report from the equalities watchdog says. The focus on maternity leave has entrenched the notion that only mothers look after children and damages women’s careers by making them less attractive employees, the group warns. The Equality and Human Rights Commission said that these are the most unequal arrangements in Europe.
Transsexual man expecting twins sparks ethical row30th March The Guardian A 25-year-old transsexual man in Barcelona has announced that he is pregnant with twins, prompting debate in Spain about the ethical use of reproductive technology. Rubén Noé Coronado Jiménez, who is reportedly nine weeks pregnant, interrupted hormone treatments and postponed plans to have a full sex-change operation in order to get pregnant because his 43-year-old girlfriend could no longer have children.
British Parliament Considering Tough New Bribery Bill30th March Ethics Newsline A tough new bribery law has been proposed in the United Kingdom. The U.K. Guardian reports that the bill presented to Parliament by Justice secretary Jack Straw offers stiff penalties for offering a bribe in Britain or abroad and proposes a new corporate offense: "negligent failure to prevent bribery.” Straw says his draft bill will help "reinforce transparency and accountability in international deals,” reports the Scotsman. According to an analysis in the Economist, the bill would replace a hodgepodge of difficult-to-enforce existing laws.
Contracts Now Seen as Being Rewritable30th March New York Times Contracts everywhere are under assault. The depth of the recession and the use of taxpayer dollars to bail out companies have made it politically acceptable for overseers to tinker with employment agreements. So federal and local governments are looking for ways to pare payouts, endangering the promises made before the financial storm to people like Wall Street traders, automobile workers and garbage collectors. "We run roughshod over some contracts and not over others,” said David A. Skeel, a law professor at the University of Pennsylvania, about economic downturns. "Right now, employment contracts seem to be the type of contract that is viewed as eminently rewritable.”
Beauty spot may soon become part of a 'Lake District Nuclear Park' 30th March The Guardian German energy group, RWE, revealed that it was "investigating the possibility" of building a nuclear power station there. Tomorrow RWE will nominate the site as part of a wider move to kickstart a nuclear revolution aimed at giving Britain more energy security and lower carbon emissions.
Insider dealer jailed for eight months30th March Financial Times A company lawyer who conspired with his father-in-law in a £50,000 ($71,000) insider share dealing scam was jailed for eight months on Monday in the Financial Services Authority’s first criminal prosecution of the offence. Judge Peter Testar told Christopher McQuoid his "deliberate and calculating” actions served to undermine market confidence, which was of "great importance” to the economic health of the nation.
Giveaways entice lone parents to job schemes30th March Financial Times Unemployed single mothers have been enticed to join government-funded job schemes with offers of shopping vouchers, washing machines, games consoles and Christmas turkeys by private sector groups whose fees are partly tied to how many volunteers they sign up. Even as the numbers desperate to find work has soared, private providers of welfare services have run promotions and "prize draws” to convince lone parents to take up free jobseeker support.
Chinese cyber spy network hacks into 103 nations30th March The Independent The Chinese government is under pressure to answer allegations that it is operating a huge cyber spy network that has hacked into classified files in computers in 103 countries and monitored secret correspondence sent by the office of the Dalai Lama. Researchers in Britain and Canada revealed over the weekend the existence of the so-called GhostNet network that has been gathering information from governments and private organisations.
UK plans to ban use of offshore centres30th March Financial Times Banks operating in Britain will be banned from using tax havens if they sign up to a draft code of practice drawn up by the government to address a row over their aggressive tax planning. The draft, which also gives the tax authorities the final say over whether they consider a deal to be avoidance, is more radical than businesses expected when it was announced by Alistair Darling last month. But its stringency will add to widespread scepticism that banks will sign up to the voluntary code, fuelling suspicions that it is primarily a political damage limitation exercise.
Call to invest in workers’ health30th March Financial Times A wake-up call to business to act to avoid big losses of productivity and profitability as its workforce ages was issued on Sunday by the Work Foundation and by Bupa, the health insurer. The warning came as the think-tank Reform said in a separate report that successful businesses were already investing to improve their employees’ health in what is becoming a Darwinian "survival of the fittest”.
FSA faces heat over Dunfermline bail-out31st March Financial Times The City watchdog was on Monday night under pressure to explain how it had monitored Dunfermline after the government unveiled a £1.6bn bail-out for the stricken Scottish building society. Alistair Darling, chancellor, ordered the Financial Services Authority to produce a report on how the 12th biggest lending mutual in the UK had failed. Vince Cable, Liberal Democrat spokesman, called it a "gross failure of regulation”. The FSA is already under fierce political pressure over its regulation of banks. David Cameron, Conservative leader, indicated last week he would give the Bank of England new powers to intervene to stop a bank engaging in reckless lending.
Report on MPs' pay and perks by end of year 31st March The Independent A Westminster sleaze watchdog will report on MPs pay and perks by the end of the year, it announced today following calls from party leaders for its investigation to be speeded up. The Committee on Standards in Public Life, which had originally said its recommendations would come after the next general election, bowed to pressure fuelled by recent controversies. Prime Minister Gordon Brown appealed to committee chairman Sir Christopher Kelly last night to bring forward the inquiry and suggested some far-reaching reforms of the system.
Details of MPs' expenses 'for sale'31st March The Guardian Detailed information about the expenses claimed by all MPs is on sale to the media for £300,000, a senior MP claimed last night. Sir Stuart Bell, a member of the House of Commons commission, made the allegation as he confirmed that the parliamentary authorities have launched a mole hunt to discover who is leaking information to the press. The revelations at the weekend about Jacqui Smith, the home secretary, inadvertently claiming for two pornographic films have intensified concern among MPs that information about their expenses claims, which is being prepared for publication later this year under freedom of information legislation, is now being offered for sale to tabloid newspapers.
‘Tarp cop’ launches probes into bail-out fraud31st March Financial Times US authorities have launched more than a dozen criminal investigations into possible fraud involving bank bail-out funds, the special inspector-general for the troubled assets relief programme told Congress on Tuesday. Neil Barofsky – described at a Senate finance committee hearing as the "Tarp cop” – estimated the US had spent or lent almost $3,000bn of taxpayers’ money to aid banks and other companies, which would "inevitably attract those seeking to profit criminally”.
SEC to enlist help on fraud31st March Financial Times Mary Schapiro, the new chairman of the US Securities and Exchange Commission, is looking at addressing the agency’s limited resources by enlisting more private sector help to uncover fraud. Ms Schapiro, who took over the beleaguered regulator two months ago, said she was exploring new approaches to enforcement, including ways to "leverage” third parties, particularly in the oversight of investment advisers. There are about 400 SEC staff to examine more than 11,000 investment advisers – up more than 50 per cent since 2001.
Row deepens over equalities bill31st March Financial Times Business is mounting a last-ditch campaign against a proposed new legal power that could be used to force employers to disclose details of the gender, race and disability breakdown of their workforce. Plans to include a reserve power in the equalities bill, due to be published next month, are provoking wrangling within Whitehall. The issue has revived tensions between Harriet Harman, the equalities minister and potential leftwing successor to the Labour leadership, and Lord Mandelson, the Blairite business secretary.
London’s nervous wait for tougher regulation31st March Financial Times G20 leaders are discussing tougher regulation of the financial sector and a wide-ranging crackdown on the sort of risky financial activity that helped London topple New York as the world’s premier financial centre during the boom running up to summer 2007. "The future of the UK’s financial services rests on a knife edge at the G20,” said Stephen Haddrill, director-general of the Association of British Insurers. "London can lead the way out of the crisis in financial services but it also has most to lose.”
Harsh environment awaits banking survivors31st March Financial Times Less risky, less profitable, and probably a lot smaller – that is the prognosis for the world’s banks as they attempt to rebound from the worst financial crisis of the postwar era. This epochal shift in the financial climate means that even those institutions that come through the downturn intact will face a struggle to adapt to the new environment. Amid the turmoil, it might seem futile to sketch out the future banking landscape. Most banks are struggling to forecast their performance over the next three months, let alone the coming five years. Bad loan charges are still rising.
Renishaw criticised for redundancy e-mail31st March Personnel Today The HR department at troubled engineering firm Renishaw has been criticised following the latest round of redundancy negotiations. The company is to make 470 cuts, but was blasted by staff for a 24-point e-mail and handout issued to workers urging them to clear their desks ahead of time, even if they weren't inevitably made redundant. "All employees are requested to minimise their personal belongings stored at work prior to the notification days," the e-mail read.
NHS rejects criticism over sickness absence 31st March Personnel Today The NHS has rejected claims it is a "dinosaur" following a report criticising the service's sickness absence rates. Fit for Recovery, a report by think-tank Reform, claimed the NHS could save £1bn each year by copying strategies used by private firms to reduce sickness absence among employees. NHS staff take on average nearly 12 days off sick a year, far higher than the the rate of 7.2 in the private sector.
BT manager who 'suffered curved neck after spending hours bent over laptop' sues for £100,0001st April Daily Mail A high-flying manager is suing BT for up to £100,000 claiming that long hours spent bending over a laptop left her with a curved neck after bosses refused to give her a desk. Rachel Lowe, 40, claims she was bullied by bosses who refused to allocate her a desk - leaving her with excruciating pain in her spine. The account manager, who secured the telecoms giant's largest ever deal worth tens of millions of pounds, is claiming compensation, also saying she was forced to work a 60-hour week and reduced to a mental and physical wreck.
French energy company executive charged with spying on Greenpeace1st April The Guardian A senior executive of the French state energy giant EDF, which now owns the main UK nuclear power operator British Energy, has been charged on suspicion of spying on the environmental group Greenpeace. The case has sparked outrage among anti-nuclear campaigners in France whose secret services were behind the bombing of the Greenpeace flagship Rainbow Warrior 24 years ago. Judges are investigating whether state-owned EDF, hired a private detective agency run by a former member of the French secret services to illegally spy on environmentalists and infiltrate their ranks.
Mastercard agrees to cut fees in Europe 1st April Financial Times Mastercard is to reduce sharply fees on cross-border credit card transactions in a deal with Europe’s antitrust authorities. In return, Brussels will stop pursuing the company over allegations its fee structure breached European competition rules. But the deal was met with lukewarm support from retailers, with some calling it a "weak compromise” by Neelie Kroes, Europe’s competition commissioner, and others saying it should be a "first step” only.
US hedge fund charged with $7bn Madoff fraud 1st April The Guardian A US hedge fund, Fairfield Greenwich, has been charged with fraud for pumping nearly $7bn (£4.85bn) of its clients' money into Bernard Madoff's corrupt investment empire with "total disregard" for any checks on the renegade financier's activities. The action, by Massachusetts' securities regulator, is the first to be taken against any of the so-called "feeder funds" that channelled billions of dollars in the direction of Madoff, who was jailed last month. It happened as federal marshals in Florida impounded Madoff's $7m yacht, Bull, at a mooring in Palm Beach. Television pictures showed officials clambering over the pristine 17-metre (55ft) vessel, searching its cabin and sticking up notices saying "US marshals – no trespassing".
New Century liquidators sue KPMG for $1bn1st April Financial Times KPMG is being sued for $1bn by the liquidators of New Century, the collapsed subprime lender, in the first big case against an auditor arising from the current financial crisis. In a court filing on Wednesday, lawyers for New Century’s liquidators claimed that KPMG "assisted in the misstatements and certified the materially misleading financial statements” filed by the lender. They claim KPMG was responsible for its collapse because it allowed the lender to use inappropriate accounting that led it to underestimate the provisions it needed to cover bad loans. This made its position look better and gave it access to more funds.
Adidas and Michelin in tax-haven fraud inquiry1st April The Independent In a move that appeared to be timed to coincide with pressure by President Nicolas Sarkozy for a G20 agreement on curbs for offshore tax havens, the French government has demanded tax fraud investigations into bank accounts allegedly held in Liechtenstein by Michelin, Total and Adidas. President Sarkozy has been pushing for strong action to curb tax evasion at tomorrow's summit in London and the timing of yesterday's announcement – originally a leak to the French press – was almost certainly intended to prove that the French government is taking an equally tough line at home.
Sit-ins at three factories after Visteon goes into administration2nd April The Guardian The crisis in the British motor industry prompted a sit-in protest at three factories across Britain yesterday after dwindling car sales and mounting losses forced a car-parts maker into administration with the loss of 565 jobs. Hundreds of workers at Visteon occupied factories in Enfield and Basildon following an overnight occupation in Belfast. Trade union leaders also demanded an urgent meeting with Ford, Visteon's biggest customer and its former owner.
BP faces two civil cases over Alaskan oil spills2nd April The Independent Both the US federal government and the State of Alaska filed civil cases against BP yesterday over oil spills at Prudhoe Bay in 2006. The US Justice Department accusation maintains that the energy giant illegally discharged more than 200,000 gallons of oil from its pipelines, and failed to prepare and implement adequate spill prevention measures required under the Clean Water Act.
Northern Rock has £1bn branch in tax haven 5th April Times Gordon Brown has been accused of the "height of hypocrisy” for allowing the state-owned Northern Rock to run an offshore bank in the Channel Islands while he is leading a global campaign against tax havens. Northern Rock Guernsey boasts on its website that it is a "major competitor in the offshore retail savings market” and that "expatriates, foreign nationals or UK residents wanting to take advantage of tax planning can choose from a range of competitive products”. Tax planning is a euphemism used by financial experts advising on legal ways to avoid tax.
MPs claim stamp duty on expenses5th April Times MPs are avoiding stamp duty of more than £10,000 on second and third homes by claiming it back on their parliamentary expenses. They are claiming it in addition to furnishings and mortgage interest payments for homes they are allowed to keep after leaving parliament. The exemption from one of Labour’s most unpopular taxes is revealed in more than 1m receipts for MPs’ claims due to be published this summer. Details of the perk will further inflame public anger over MPs’ funding of private homes at public expense. David Cameron, the Conservative leader, indicated this weekend that he will give up the second home allowance if he becomes prime minister.
Social media reshape disclosure 5th April Financial Times Social media are changing the way companies handle investor relations and corporate disclosure, offering the potential for more transparency, but also raising questions about legal compliance. When Ebay released fourth-quarter results in January, its chief blogger, Richard Brewer-Hay, listened in on the earnings call and posted live updates to the micro-blogging site Twitter. "This is Ebay’s first negative year-over-year quarter,” he wrote. "We’re not happy about that.”
Myners urges ‘radical’ shake-up of bank boards5th April Financial Times Bank directors could face compulsory seminars on financial stability, longer working weeks and enforced "devil’s advocates” on boards under an overhaul of corporate governance. Lord Myners, City minister, has urged two independent reviews into board practices to "go outside the conventional framework” and test unorthodox management models. Ministers think boards are ripe for a shake-up after failing to act as a first line of defence against the financial crisis – because directors lack the expertise and tenacity to challenge ruinous business plans.
Shell in court over alleged role in Nigeria executions5th April The Guardian Ken Saro-Wiwa swore that one day Shell, the oil giant, would answer for his death in a court of law. Next month, 14 years after his execution, the Nigerian environmental activist's dying wish is to be fulfilled. In a New York federal court, Shell and one of its senior executives are to face charges that in the early 1990s in Nigeria they were complicit in human rights abuses, including summary execution and torture. The Anglo-Dutch company, if found liable, could be forced to pay hundreds of millions of pounds in damages. No multinational has ever been found guilty of human rights abuses, although two previous cases saw major claims settled outside court.
Executive charity aims to counter anger13th April Financial Times Some of Europe’s leading executives, chastened by rising anger over executive pay and bonuses, are setting up charities, giving away money or waiving their salaries. Senior managers at Porsche and Volkswagen, who made millions on the back of controversial share price gains, have led the way with charitable donations. Wendelin Wiedeking, chief executive of Porsche, earned almost €80m ($107m, £72m) last year at the German sports carmaker, drawing scorn from some in Germany. He has set up two charities with €5m each to help needy families in the small German towns where he grew up and now has residences.
Sharp divide on executive pay 13th April Financial Times Public opinion is sharply divided over bonus culture in the wake of the credit crunch, according to a new opinion poll from Financial Times/Harris. Continental Europeans believe bonuses should form a smaller part of executive pay in the future but the British and Americans are against the idea. Between 65 and 79 per cent of Germans, French, Italians and Spanish favour a smaller role for bonuses. But only about a third of people in the US and UK support such a move, with about the same number opposing it.
Budget to unveil supply-chain insurance plan 14th April Financial Times A state guarantee scheme to underpin vital supply-chain insurance is set to be announced by Alistair Darling, chancellor, in next week’s Budget, according to government insiders. The scheme will form a centrepiece of the Budget initiatives to help small to medium-sized businesses cope with the recession. Its unveiling marks the culmination of months of negotiations with insurers spearheaded by Lord Mandelson, the business secretary.
14 Lancashire council staff suspended over racist e-mails14th April Personnel Today.com Fourteen council staff have been suspended ahead of claims they sent one another racist e-mails, it emerged yesterday. Lancashire County Council has suspended the employees, who work in several different departments, ahead of disciplinary proceedings about offensive and inappropriate e-mails allegedly making anti-semitic remarks. If found guilty of gross misconduct the staff could be sacked.
Professions ‘ever more dominated by wealthy’14th April Financial Times Employers were urged to end the nepotism and networking that restrict access to top jobs in professions such as the law, media and the City, after an official report on Tuesday warned that the professional classes had become even more dominated by the wealthy in the past two decades. Alan Milburn, the former cabinet minister appointed by Gordon Brown to advise on social mobility, cited a Cabinet Office report published on Tuesday as "shocking” evidence the professions had "become more, not less, socially exclusive” with access governed by "who you know, not what you know”.
80/20 takes the moral high ground, not the money 14th April Financial Times 80/20 Thinking, the privacy consulting company led by privacy activist Simon Davies, has been forced to stop commercial contracts with companies like Microsoft and Facebook, after criticism about conflicts of interest. The business had been led by Mr Davies, who is also founder and director of pressure group Privacy International. Mr Davies set up 80/20 Thinking last year, partly to raise money for privacy-related projects in the developing world, and had intended to give half of the company’s profits to such work. 80/20 Thinking worked with companies such as Microsoft, AOL, Vodafone, Ebay and Facebook to provide training about privacy issues and to advise them on the data protection implications of products. However, Mr Davies said he felt this commercial work was affecting the reputation of Privacy International.
Insurers squeeze job loss victims14th April The Independent Workers who took out insurance against losing their job in the recession have been told they will get lower pay-outs in a trend that could affect millions of people. One of the most respected insurers, the Post Office, has raised premiums and cut cover for mortgage protection customers who took out policies during the boom when they were less likely to be sacked. The Financial Services Authority has fined 13 companies – including Alliance & Leicester, Egg, and Capital One Bank – for mis-selling PPI. The mis-selling affected more than 400,000 customers.
Businesses warn of rising risk of counterfeiting on internet14th April The Independent Popular brands have called for stricter policing of the internet, as they fear fraud will soar during the first "digital recession". Marks & Clerk, an intellectual property group, will today reveal that 80 per cent of businesses surveyed believe their brands are at a "much greater risk" of counterfeiting than in previous recessions because of the rise of the internet.
Union angry at Virgin Media over bonuses14th April The Independent Virgin Media, the struggling cable operator, has provoked a furious response from unions by revealing it intends to award its executives bonuses just months after cutting more than 2,000 jobs. In a US stock exchange filing, the broadband and pay-television group said it had approved plans to award executives who meet qualifying criteria up to 100 per cent of their base salary. Virgin Media's plans come after it said late last year that it would sack 2,200 jobs – or 15 per cent of its workforce – by 2012 in order to save cash. Grace Mitchell, of the Communication Workers Union, said: "The executives should be taking a lead and looking to forgo these bonuses."
Internet privacy: Britain in the dock15th April The Independent Britain's failure to protect its citizens from secret surveillance on the internet is to be investigated by the European Commission. The move will fuel claims that Britain is sliding towards a Big Brother state and could end with the Government being forced to defend its policy on internet privacy in front of judges in Europe. The legal action is being brought over the use of controversial behavioural advertising services which were tested on BT's internet customers without their consent.
Police move to ease City crime fear 15th April Financial Times Specialist police squads designed to help companies fight crimes ranging from data theft to terrorism are to be set up in the City of London and other leading business centres from next month. Three pilot units of specialist officers are due to start operating in London from next month in a move that could be replicated across Britain. The initiative comes amid growing concern that fears about crime are deterring expatriate workers and foreign companies from coming to London.
Auditors highlight concerns on Tiscali’s future15th April Financial Times Tiscali’s auditors raised doubts on Wednesday about the future of the Italian telecoms company, which is grappling with a large debt. Ernst & Young queried whether Tiscali could continue as a going concern, and declined to confirm the accuracy of the company’s balance sheet. Tiscali strongly disagreed with the auditors. The company expressed confidence it would successfully conclude negotiations about a restructuring of its debt with banks led by JPMorgan and Intesa Sanpaolo.
Government faces legal action over online snooping15th April The Guardian The European commission yesterday called for the UK's privacy laws to be tightened to protect internet surfers as it launched legal proceedings against the government for breaching data protection and so-called ePrivacy rules. The commission's legal action centres on the handling of controversial online advertising technology developed by UK-based Phorm which enables internet service providers (ISPs) to track what a user does on the internet to create a list of their interests which can be used to show them more relevant adverts.
AIG faces probe into role of PR companies15th April Financial Times AIG, the insurance group bailed out with more than $170bn of US taxpayer money, is under investigation by a House of Representatives committee over payments to public relations companies. Edolphus Towns, chairman of the House committee on oversight and government reform, wrote on Tuesday to Edward Liddy, chief executive of AIG, to ask whether the company paid "public relations firms to attack critics of AIG and the federal bail-out”. He said the inquiry was necessary "to ensure that federal funds are not being misused”.
Lloyds and RBS to offer loans as staff bonuses16th April Financial Times RBS and Lloyds are now paying some staff bonuses in subordinated debt - in the form of bonds rather than shares - over three years following the political furore about bonuses paid by banks that have been rescued by the taxpayer. The 2008 bonuses are payable in three tranches starting next year. RBS and Lloyds have now decided to offer personal loans at a commercial rate of interest so their employees can borrow against part of their future bonuses that are not subject to clawback.
FSA under attack on regulation in boom 16th April Financial Times The City watchdog has been accused of "apathy and complacency” in its regulation of building societies during the boom, by one of its former supervisors. Vince Cable, Treasury spokesman for the Liberal Democrats, has written to Lord Turner, Financial Services Authority chairman, asking him to investigate the claims which he called a "scathing indictment” of regulatory failure. The MP was contacted by the whistleblower just days before Moody’s, the credit ratings agency, cut its ratings for nine building societies on Wednesday. The former supervisor claimed that FSA management ignored a warning three years ago that risky self-certified loans had been bundled up and sold to building societies that thought they were buying conventional mortgages.
Technology heavyweights join browser case against Microsoft16th April Financial Times A group of technology companies led by IBM, Nokia and Oracle, has joined the European Commission's antitrust case against Microsoft and will testify against the company, which is accused of abusing its dominance in the internet browser market. Ecis, the technology industry group, yesterday said it had been accepted as a third party complainant in the case, joining Google and the Mozilla Foundation, the developers of the Firefox browser.
Employers and unions seek Government wage subsidy for short-time working16th April The Telegraph Employers and unions have urged the Government to introduce a temporary short-time working scheme in the Budget to help people losing pay during the current recession. The TUC, British Chambers of Commerce, Engineering Employers Federation and Federation of Small Businesses joined forces on Thursday to argue that a state wage subsidy for workers who lose earnings through cuts in hours is a better alternative than redundancy. The submission proposes that the Chancellor use next week's Budget to bring forward measures aimed at keeping workers in employment as well as helping firms stay in business.
'Shocking ageism' in stroke treatment 16th April The Independent Elderly stroke patients do not receive the same level of care as their younger counterparts, a report claims. Younger stroke patients are scanned more quickly and are five times as likely to be given MRI scans than people aged over 75, according to research in the Postgraduate Medical Journal. Both age groups were given appropriate drugs to stave off further strokes, but younger patients were significantly more likely to be given dietary and weight loss advice, the researchers found. Michelle Mitchell, charity director for Age Concern and Help the Aged, said: "This is another shocking example of ageism in the NHS resulting in older people being denied the care and treatment they need because they are deemed 'too old'."
Shoppers 'expect ethical trading' 17th April BBC News Most shoppers say they expect companies to act responsibly towards the environment and producers in developing countries, a survey has suggested. In the poll of 14,500 people in 15 countries, more than half said they were "active ethical consumers". The UK had the greatest awareness, with more than four out of five saying they recognised the Fairtrade mark. The survey reported that most respondents wanted firms to actively support community development around the world. Mr Cameron, chief executive of the Fairtrade Labelling Organisations International - the international umbrella organisation for Fairtrade - said that "global brands see Fairtrade as an important part of their strategy for the future."
Misconduct in public office17th April The Independent It's not often that you hear anyone say "sorry" in British political discourse, still less in a sentence that also includes the words "full responsibility". So it seems grudging to point out that Gordon Brown could have saved himself a lot of bother if he had delivered his public apology rather earlier and included the hardest word in the letters he took the trouble to write by hand. This sordid episode should now be regarded as closed, even if the some damage is bound to stick, not just to the Downing Street communications operation, but to the Prime Minister himself.
Whistleblower nurse struck off over BBC film17th April The Independent A nurse who secretly filmed on a hospital ward to expose the neglect and ill treatment of elderly patients has been struck off the register for misconduct. Margaret Haywood, 58, who had been a nurse for 20 years, was struck off by the Nursing and Midwifery Council (NMC) after acting as an undercover reporter for a BBC Panorama programme broadcast in July 2005. Last month, teacher Alex Dolan was banned from teaching for a year for secretly filming anarchic conditions in Britain's schools for a Channel 4 Dispatches programme screened in 2005.
London urged to lead bonus reform19th April Financial Times Britain should take a lead in reforming the bonus culture for senior bank executives by adopting a less volatile form of incentive and requiring shareholders to approve remuneration advisers and their fees, a new report is to urge. The proposals by the Policy Exchange, an influential centre-right think-tank, come amid a swathe of official moves to respond to public anger over the role bonuses have played in the financial crisis. The Financial Services Authority has threatened to raise capital requirements for banks that reward short-term risk-taking. The Financial Reporting Council is reviewing the Combined Code, the corporate governance template for quoted companies, and the government has asked Sir David Walker, the former City watchdog, to review bank governance.
Firms urge minimum wage freeze19th April BBC News Business leaders have called for a minimum wage freeze as part of measures to help private industry drive the economy out of recession. The British Chambers of Commerce (BCC) called for more support in Wednesday's Budget, including cutting small businesses' corporation tax. "It will be business that drives the economy forward, creating jobs and wealth," said BCC chief David Frost. He warned that many more companies could fail unless the government acts.
Google is accused of UK tax avoidance20th April The Guardian Google has joined the list of companies facing criticism over tax avoidance after public accounts showed it paid only £600,000 in UK corporation tax despite local revenues of more than £1.25billion. A review of Google's British operations suggests the web search engine could have faced taxes of more than £100million in this country, but that it avoided this by channelling revenues through Ireland. Google's activities were condemned as unacceptable by politicians amid promises from the Prime Minister, Gordon Brown, to crack down on tax evasion in this week's budget.
Brussels to probe seven airlines20th April BBC News The European Commission has launched anti-competition investigations into seven airlines, accusing them of excessive co-operation. Two separate probes have been started, one into the relationship between Star Alliance members Air Canada, Lufthansa, Continental and United Airlines. The other investigation is into One World members American Airlines, British Airways and Iberia. The Commission said their co-operation may be excessive and breach rules. The investigations are into transatlantic routes between Europe and North America.
BAE claims ‘progress’ on ethical report20th April Financial Times BAE Systems has defended the first external audit of its ethical conduct, after it emerged that its scope did not include an assurance that the company’s actions would meet recommendations made by Lord Woolf on how it could improve its standards. Europe’s biggest defence contractor appointed Deloitte last year as part of its response to recommendations made by Lord Woolf, former Lord Chief Justice, in his report on how BAE could improve its ethical standards.
Watchdog defends Network Rail bonuses21st April Financial Times Network Rail’s controversial bonus scheme has been defended by the chairman of the rail industry watchdog in the teeth of political attacks on the programme. Chris Bolt, of the Office of Rail Regulation, said it was "clearly important” that management at the company that owns Britain’s rail network was made to focus on meeting its targets. "That’s what the financial incentive plan is there to do,” he said.
Banks invest in compliance and risk monitors21st April Financial Times Fears that the financial meltdown will spark a worldwide regulatory backlash are prompting banks around the world to invest in their control departments by giving them increased authority and recruiting stronger employees. Compliance, legal and risk departments have traditionally been mocked as "business prevention units” – pure cost centres that stood in the way of making money. But now they are starting to be seen as critical backstops that can keep already weakened financial services companies out of further trouble and perhaps fend off intrusive new regulatory reform.
BAE Systems: Company Dismissals21st April The Times The company dismissed 297 staff last year for breaches of ethical rules. The defence company, which has been dogged by accusations of bribery and corruption, said in its corporate responsibility report that dismissals had increased by 14 per cent. Formal ethics inquiries from staff rose 55 per cent to 507.
Competition watchdogs probe airlinealliances21st April Financial Times Competition authorities on both sides of the North Atlantic are struggling to respond to the growing efforts by some of the biggest airlines in Europe and the US to deepen their transatlantic cooperation. The decision this week by the European Commission to launch two formal antitrust proceedings against planned airline deals among core carriers in the Star and Oneworld alliances, respectively, highlights the confusion and the very different approaches being taken by US and European Union competition agencies.
Critics round on UK export rule change21st April Financial Times Efforts to stop British companies bribing foreign public officials and damaging the environment overseas will be hit by a planned law aimed at boosting exports during the credit crunch, leading campaign groups claimed on Monday. Non-governmental activists, ranging from WWF, the conservation body, to Transparency International, the international anti-corruption organisation, have attacked a proposal before parliament on Tuesday to allow the government to give retrospective financial backing to export deals.
EDF accused of spying on anti-nuclear groups21st April Financial Times EDF, France's nuclear energy operator, paid investigators to infiltrate the anti-nuclear movement around Europe, according to testimony given in a French judicial investigation. The investigation is looking into whether the state-controlled group condoned illegal practices as part of a surveillance operation. The affair has exposed an underworld of computer hackers and private investigators who claim to have worked for some of the world's most respected companies.
Firm charged over worker's death23rd April BBC News Online A company has become the first in the UK to be charged under the 2007 Corporate Manslaughter Act. Cotswold Geotechnical Holdings is accused over the death of employee Alexander Wright, 27, who was killed when a pit collapsed in September 2008. The junior geologist was taking soil samples at a site near Stroud in Gloucestershire at the time. Company director Peter Eaton is charged with gross negligence manslaughter and could be jailed for life if convicted. The maximum sentence for the firm is an unlimited fine.
Scientists and ethicists unite to attack doctor's clone plan23rd April The Independent Scientists and medical ethicists yesterday condemned the controversial fertility doctor Panayiotis Zavos for transferring cloned human embryos into the wombs of four women. Dr Zavos claimed in an interview with The Independent that he had created 14 cloned human embryos and transferred 11 of them into the wombs of the four women, who wanted to give birth to cloned babies, although none of them had become pregnant.
Battery chickens face increased crowding under new legislation25th April The Independent Animal welfare campaigners protested outside the Department for the Environment, Food and Rural Affairs (Defra) yesterday over plans to set new limits on the number of chickens that can be housed in factory farms. The chef Hugh Fearnley-Whittingstall and members of the group Compassion in World Farming (CIWF) complained that the proposals would allow up to 42kg of chicken (or about 21 birds) per square metre. Defra's current recommendation is for no more than 34kg (about 17 birds).
Well equipped non-execs require full briefing26th April Financial Times Whatever the causes and their relative contributions to the near collapse of the banking system towards the end of 2008, one thing is clear: it all adds up to a catastrophic failure of corporate governance, raising serious questions about the effectiveness of the present governance framework. It must now be demonstrated how this framework, including the Combined Code for listed companies, can be more effectively implemented if corporate Britain (other than, perhaps, the banks) is to avoid the code’s replacement with statutory governance rules of the US Sarbanes-Oxley type.
Law forces employers to reveal gender pay gap27th April The Independent Legislation being published today will require employers to reveal the "gender pay gap" between male and female staff. Business organisations protest that the Equality Bill will impose unnecessary bureaucracy on firms struggling in the recession, but equalities minister Harriet Harman insists it will help end discrimination at work which sees women earn around 20% less than their male colleagues. The new Bill will require firms which employ at least 250 staff to publish details of the average hourly pay of male and female workers by 2013.
MPs to get up to £5,000 summer recess payment 27th April The Independent MPS would be given a one-off payment of up to £5,000 to maintain their second homes this summer as part of Gordon Brown's controversial overhaul of their expenses system. The Prime Minister is desperately looking for ways of averting a Commons defeat this week over his plans to introduce a flat-rate daily payment of about £150 to MPs for attending the Commons. David Cameron, the Conservative leader, yesterday claimed the "clocking-in" proposal – designed to replace the discredited second homes allowance – was "dead", while a Cabinet Minister privately conceded that Mr Brown's proposals in their present form would be rejected in Thursday's vote.
Survey says 70% plan to freeze or cut pay27th April Financial Times Seventy per cent of companies plan to freeze or cut wages this year and half are thinking of making staff redundant in the next six months, according to the latest British Chambers of Commerce monthly business survey. The results from 400 companies across the UK demonstrate the extent to which company cash flow is being squeezed. David Frost, the BCC’s director-general, will tell the business group’s annual convention in Birmingham on Monday: "It is the country’s private sector that has faced all the pain of this recession. The results of our most recent poll show just how hard times are, with half of firms considering making redundancies.
White-collar staff losing jobs at faster rate than blue-collar workers 27th April PersonnelToday.com White-collar workers are losing their jobs at a faster rate than less-skilled workers, but HR professionals are avoiding the brunt of the recession, unemployment figures reveal. Figures released by the Office of National Statistics (ONS) show 210,000 people on unemployment benefits in March had previously held skilled, middle-class jobs – more than 120% higher than the same month last year. In comparison, the number of less-skilled workers on the dole increased by 75% in the same period as 1.3 million blue-collar workers lost their jobs.
Barking and Dagenham Council staff sacked after fraud investigation27th April PersonnelToday.com More than 30 council employees have resigned or been dismissed after an internal fraud investigation revealed that they tried to cheat the council out of more than £230,000. The 12-month investigation into staff at Barking and Dagenham Council in Essex found that 31 workers were attempting to defraud their employer through money laundering, benefit fraud and deception. The council employs 8,000 staff. The police have now launched a criminal investigation after one employee was found to have submitted false papers to support a claim for early retirement, which could have cost the council £200,000.
Phone bills 'will rise' to pay for database28th April The Independent Ministers want to farm out a Big Brother database of everyone's emails, phone calls and internet use to private companies who will be given the job of storing the data on behalf of the state. The £2bn cost of the plans could add millions of pounds to phone and internet bills to help pay for new systems to collect and sort private information. Jacqui Smith, the Home Secretary, said the Government had rejected the idea of a centralised database because it would impinge on privacy. She favoured a "middle way" in which primary communication companies, such as BT or Virgin, and leading internet service providers would have the job of collating phone, email and web use.
Revenue to pour quarter of its £4 billion budget into battle against tax evasion28th April The Times Less than a week after the Chancellor proposed a rise in income tax to 50% for the highest earners, the Revenue said that it would spend a quarter of its £4 billion budget on cutting tax avoidance and evasion by £2.4 billion, Britain's most senior tax collector said last night. Lesley Strathie, HMRC's chief executive and permanent secretar, said that the organisation would relentlessly pursue those who bent or broke the rules.
Local windfarm is threatened by RWE's new nuclear plans28th April The Independent RWE's plan for a new nuclear power station at Kirksanton, near Sellafield, would mean the destruction of a community-owned wind farm already producing electricity on the site. The three companies running the Haverigg wind project on the Cumbrian coast only found out that their land was part of the German utility's plan when the full list of nominated sites was published by the Government earlier this month. Colin Palmer, the founder of Windcluster, one of the companies with turbines at the site, said: "RWE is planning to knock down our windmills to build a nuclear power station but they didn't even have the decency to contact us."
EU talks to end working time opt-out fail28th April Financial Times British employers breathed a sigh of relief on Tuesday after attempts to abolish the UK’s right to opt out of European Union rules limiting a working week to 48 hours finally disintegrated. The failure of marathon negotiations between the European parliament and EU governments to break the deadlock on the issue means UK companies will continue to be able to offer staff the opportunity to work longer hours.
Cut-throat world of supplying supermarkets28th April Financial Times It was last year when a food buyer at Asda’s headquarters in Leeds, northern England, hatched a plan to offer customers a £1 ($1.46) frozen pizza. With prices typically about £1.49, the price cut was a drastic one, but it did find a supplier who thought it was possible. Win-win situations in supply agreements between retailers and suppliers are few and far between. Relations between the two are typically combative rather than convivial. In the highly-competitive British retail market, supermarkets are constantly trying to drive better deals from their suppliers.
Sunderland Council's female staff win tribunal case28th April PersonnelToday.com Sunderland City Council has lost an employment tribunal brought by 150 female staff who claimed male-dominated roles were being targeted for bonuses. The women successfully argued, in 12 test cases, that bonus payments of up to 50% of basic salary made to men in traditionally male jobs, such as street cleaning, rubbish collection and gardening, were discriminatory.
IoD chief calls for public pay freeze28th April Financial Times Public sector pay should be frozen for at least a year to match what is happening in large parts of the private sector, according to the director-general of the Institute of Directors. Miles Templeman is calling on the government to start cutting expenditure "in a whole new way” to avoid raising taxes further. "Companies have got to be seen to be more transparent and more aware of the needs of all their different stakeholders,” he told the Financial Times.
Help for the whistleblowers28th April Financial Times With corporate behaviour under renewed scrutiny as explanations are sought for the financial crisis, revelations have come to the surface about internal critics who warned about their employers’ activities but were ignored or, worse, sacked. The UK’s Serious Fraud Office has now established a whistleblowers’ helpline for City workers worried about their employers. Should whistleblowing be encouraged? And if so, how can a company take note of grievances without encouraging malicious or groundless complaint that could threaten the company’s reputation?
We will always fight the bias towards men: The Conservative Party leader argues for positive action to boost the number of female MPs29th April The Times Yesterday, The Times accused my party of failing to do enough to promote women in politics. Today, I want to set a few things straight. But let me start by saying what The Times got right: this is not some side issue - it's a vital one. It is crucial that the people who make decisions that affect everyone's lives represent Britain as a whole and that we end the chronic under- representation of women in politics. But I would strongly disagree with the thrust of yesterday's argument. The headline said: "Women take a back seat in Cameron's Tory Party” and was accompanied by a picture inside, of me surrounded by a sea of suits. What you couldn't see were the four women on my other side.
TV adverts for personal loans face ban Independent29th April The Independent Television adverts that casually invite viewers to borrow thousands of pounds are to be banned in a crackdown on the £95 billion loan industry, The Independent has learned. The Advertising Standards Authority will use a new social responsibility code from the Broadcasting Committee in Advertising Practice (BCAP) to stamp out reckless consumer credit promotions, consigning to history the tempting offer to "combine all your existing debts into one easy monthly payment", its chairman Lord Chris Smith said.
Finance could learn from ecology, suggests Bank29th April Financial Times Financial risk management and regulation should cast aside many elements of traditional finance theory and learn lessons from ecology, the spread of diseases, biology and engineering, according to a senior Bank of England official. Andy Haldane, the Bank's head of financial stability, said studying the ecology of rainforests and fish stocks was not a sign of the regulators going soft in response to the crisis, but was needed because other disciplines had a more advanced understanding of complex networks.
In Europe, Intel faces a large antitrust fine29th April New York Times European antitrust regulators, which have been aggressively pursuing what they see as anticompetitive practices among technology companies, could impose their largest fine ever in a market-dominance case against the chip maker Intel. The size of the penalty will be discussed by representatives from 27 European Union governments in early May. The decision would follow landmark rulings by the European Commission against Microsoft, which also is being investigated over its Internet Explorer browser, and a settlement with IBM, which is again the subject of a complaint.
Quota system may be considered for judges29th April The Independent Quotas for ethnic minority and women judges could be part of new proposals aimed at improving "diversity" in the judiciary. Baroness Julia Neuberger, a government adviser, said she wanted to remove "blockages" faced by applicants for judicial posts and make judges more representative of society. The Liberal Democrat peer will chair a panel of advisers selected by Jack Straw, the Lord Chancellor, to propose ways to speed up the appointment of judges who are not white men. By considering quotas, the panel will find itself at loggerheads with the most senior judge in England and Wales.
Threat of revolt forces Brown retreat30th April Financial Times Gordon Brown on Thursday claimed to have started a "clean-up” of MPs’ allowances, but only after a threatened Labour revolt forced him to abandon the centrepiece of his plan. Mr Brown’s supporters claimed that the limited reforms agreed on Thursday meant the prime minister had "snatched victory from the jaws of defeat”, although there was no disguising Labour anger over his handling of the issue. After a heated debate, MPs agreed to give full details of outside earnings; abolish the second home allowance for outer London MPs; produce receipts for all expenses claims; and put members’ staff on the Commons payroll.
Charities forced to axe thousands ofjobs30th April The Independent Charities are axeing thousands of jobs to cope with a collapse in donations as the recession deepens. After years of expansion, the voluntary sector is laying off staff, putting recruitment on hold and scaling back "non-essential" services. Earnings from investments have also fallen following cuts in interest rates. The value of major bequests has dropped because of tumbling property prices. The redundancies come as charities face greater pressure to help people who have lost their jobs and homes during the economic crisis.
Government anti-poverty fund condemned for paying chief executive nearly £1 million30th April The Guardian A government-owned investment fund set up to help alleviate poverty in the developing world comes under attack from MPs today for trebling the pay of its boss to almost £1million. The Commons public accounts committee said the government had allowed CDC Group (formerly known as the Commonwealth Development Corporation), which has built up investments in developing countries worth £3 billion, to award excessive bonuses to its chief executive, Richard Laing.
Pothole 'every 120 yards' on Britain's roads30th April The Independent Whether there are now enough holes to fill the Albert Hall might never be known, but the number plaguing British roads has soared by 32 per cent since last year and the average road now boasts a pothole every 120 yards. The AA president, Edmund King, said 2,000 drivers had contacted the organisation in February because of pothole damage – nearly three times as many as the previous year. He said the Government invested only 20 per cent of the £46bn it received each year from the road tax back into roads and called for a building programme focused on roads to kick start the economy.
Foxtons in court fight over 'unfair' contracts30th April The Independent Foxtons may be familiar with London's swishest apartments and homes but the city's brashest estate agency found itself in the grander, austere surroundings of the Royal Courts of Justice yesterday when it was dragged before a High Court judge to defend its business practices. In a test hearing that will have ramifications for the UK's 15,000 letting agents, the Office of Fair Trading claims that the terms of Foxtons' residential letting contracts are so onerous and one-sided that they are illegal under consumer legislation.
Biggest pay fall on record for workers30th April The Independent The average weekly wage in the UK fell by almost 6 per cent in February, official figures revealed yesterday, as the financial crisis continued to wreak havoc on the wider economy. A 5.8 per cent drop in earnings compared with February 2008 was the steepest fall in weekly wages recorded since the Office for National Statistics (ONS) began publishing such data in 2001, and was largely accounted for by a huge fall in City bonuses. The ONS said bonus payments in financial services in February had more than halved compared with a year previously.
Banks and regulators to blame for the 'astonishing mess' today1st May The Independent Britain's beleaguered banks are the "authors of their misfortune", with the bankers themselves having made "an astonishing mess" of the financial system, according to the powerful cross-party Treasury Select Committee of MPs. The MPs said there was "an unresolved inconsistency between... bankers' assurances that they are increasing their lending and, on the other hand, the widespread complaints of business that credit is difficult to obtain and increasingly expensive". The authorities are also criticised for failing to anticipate the scale of the crisis, and for their weakness in overseeing the banks now.
Death rates and complaint levels at every hospital to be published: Ministers will use fear of publicity to protect patients from another NHS scandal1st May The Independent Death rates for every hospital in England were published yesterday by the Government for the first time to tighten standards of NHS care. NHS trusts will be required to report levels of complaints from patients, and health authorities will hold regular "clinical risk summits" to assess threats to patient safety. The moves, signalling a new level of transparency in the NHS, were announced by the Health Secretary Alan Johnson yesterday in response to the publication of two reports into the scandal at Stafford Hospital in the West Midlands, where an investigation uncovered "appalling" standards of emergency care that may have led to hundreds of deaths but which went undetected for years.
‘Vote down’ of deficient directors urged1st May Financial Times A leading fund management industry figure has urged fund managers to vote down directors of poorly performing companies to prove they mean business. "Voting directors down is likely to do more good for governance than all the code revisions in the realm,” said Mr Jenkins. His call comes as politicians and regulators step up criticisms of shareholders for being "supine” during the build-up to the banking crisis and failing to exert their influence to halt excesses. Lord Myners, the City minister, last week lambasted shareholders for acting like "absentee landlords” and urged them to get more involved.
