Archive for December, 2008
MoD criticised over late projects
MoD criticised over late projects
The Ministry of Defence is failing to properly manage its major equipment projects, allowing costs to mount and delays to lengthen, a watchdog says.
The National Audit Office said large-scale projects had fallen a further 96 months behind schedule this year and costs had risen by £205m.
Its report found some progress had been made in improving procurement practice.
Defence officials said the report looked at only 20 of 350 projects and its priority was getting kit to troops.
National Audit Office head Tim Burr said the Ministry of Defence had made some progress but performance remained “variable”.
“Until the MoD and the defence industry improve their decision-making processes and show sustained learning from previous projects, value for money will not be consistently delivered,” he said.
‘Risk involved’
The NAO found the MoD had “broadly kept costs under control” this year on all but two projects: the Beyond Visual Range Air-to-Air Missile System and Mark 4 Nimrod aircraft.
Quentin Davies, minister for defence equipment, said the MoD was currently managing 350 complex equipment projects at various stages of concept, assessment, development and manufacture, valued at more than £65bn.
“Many of these are at the leading edge of technology and therefore involve risk,” he said.
"This is about more than money – this kit will sooner or later be operated, perhaps in anger, by our men and women in the forces"Edward Leigh, Commons public accounts committee chairman
“When it comes to the delivery of equipment for our armed forces, we should never be complacent.
“We always look to make improvements and build on the progress we have made.”
Tory MP Edward Leigh, who chairs the Commons public accounts committee, said the “same old failings” were potentially leaving British troops unprepared for front-line action.
“This is about more than money. This kit will sooner or later be operated, perhaps in anger, by our men and women in the forces – and it is not good enough, to say the least, if it is late coming into service or does not do what it was originally supposed to,” he said.
‘Culture of incompetence’
Shadow defence secretary Liam Fox said: “Once again the Major Projects Report reveals the government’s failure properly to manage the long-term defence procurement programme,” he said.
“Delays in projects have tripled since 2006 and costs have risen by £205m.”
Liberal Democrat defence spokesman Nick Harvey said the report was further evidence of the “culture of incompetence” at the MoD.
“Miscalculations and hopelessly unrealistic expectations have taken a massive toll on Britain’s already overstretched defence budget,” he said.
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This article is from the BBC News website. © British Broadcasting Corporation
Add comment December 18, 2008
Gambling tycoon to forfeit $300m
Gambling tycoon to forfeit $300m
The billionaire co-founder of an internet gambling company has pleaded guilty to violating US internet laws and agreed to forfeit $300m (£192m).
Anurag Dikshit, co-founder of the UK-listed company PartyGaming, entered the plea in a New York federal court.
He is charged with violating federal gambling laws, an offence which could incur a prison term of up to two years.
Mr Dikshit, an Indian national with an estimated fortune of $1.6bn, declined to comment to reporters.
The US justice department said Mr Dikshit, 37, had pleaded guilty to one count of “using the wires to transmit bets and wagering information”.
US gambling law reforms in 2006 effectively made it illegal for PartyGaming to trade there.
Correspondents say Mr Dikshit, who still holds a major stake in the company, is unlikely to serve any jail time because of a plea agreement with prosecutors.
Mr Dikshit, who was released on a $15m bail pending sentencing next December, has already paid $100m
This article is from the BBC News website. © British Broadcasting Corporation
Add comment December 17, 2008
Ofgem targets £500m bill savings
Ofgem targets £500m bill savings
An energy market investigation by industry regulator Ofgem is on track to remove more than £500m in unfair bill premiums, the watchdog has said.
Ofgem said that since the probe began, more than £300m had been taken off bills, including those of pre-payment meter customers.
It added that the big six energy suppliers had indicated that further price cuts should reach at least £200m.
However, Ofgem said the pace of delivery of the cuts had to be faster.
It said it could still refer the matter to the Competition Commission in the New Year if it is not ultimately satisfied with the industry’s response to its proposals.
‘Encouraging signs’
The £200m of additional price cuts will be for the more than four million households who are not connected to the gas grid, and others who have been identified as missing out on the best deals.
“We’ve seen progress but it’s certainly not the endgame,” said Ofgem chief executive Alistair Buchanan.
“We’ve seen encouraging signs since the end of our initial investigation, but we demand more and quicker action for those customers currently losing out.
“We are about to consult on new rules to end unfair pricing in future.”<p
This article is from the BBC News website. © British Broadcasting Corporation
Add comment December 16, 2008
Bush arrives in Kabul for talks
Bush arrives in Kabul for talks
US President George W Bush has arrived in Afghanistan on a surprise visit, his last before stepping down in January.
Mr Bush addressed US troops at Bagram air base before leaving for talks with his Afghan counterpart, Hamid Karzai.
He said Afghanistan was a “dramatically different country than it was eight years ago”, when US-led forces invaded.
Mr Bush flew to Afghanistan from Iraq, where a news conference was disrupted when an Iraqi TV journalist threw his shoes and shouted insults at him.
The president ducked and just missed the shoes, which hit the wall behind. The journalist was wrestled to the floor by security guards.
During the trip, Mr Bush and Iraqi Prime Minister Nouri Maliki signed a new security agreement between their countries, which paves the way for the withdrawal of US troops from Iraq by 2011.
‘Hopeful gains’
President Bush was met at Bagram air base, north of Kabul, early on Sunday by Gen David McKiernan, the US commander of Nato-led troops in Afghanistan.
He was then led into a giant white tent, where hundreds of US troops greeted him with cheers as he thanked them for serving.
"The degree of difficulty is high. It’s hard. Nevertheless the mission is essential"US President George W Bush
“I am confident we will succeed in Afghanistan because our cause is just,” he said in a speech.
“Afghanistan is a dramatically different country than it was eight years ago,” he added. “We are making hopeful gains.”
Mr Bush said he recognised that more troops were needed in the country and that he supported President-elect Barack Obama’s pledge to increase numbers.
He also said it was important to continue working with Pakistan so that pressure was kept on militants based along its border with Afghanistan.
“If Pakistan is a place from which people feel comfortable attacking infrastructure, citizens, troops, it’s going to make it difficult to succeed in Afghanistan,” he said.
“The more we can get Pakistan and Afghanistan to co-operate, the easier it will be to enforce that part of the border regions.”
Speaking on Air Force One en route to Afghanistan, Mr Bush told reporters that his country’s goal there was similar to the one in Iraq – to let the new democracy develop its institutions so that it could survive on its own.
“The degree of difficulty is high. It’s hard. Nevertheless the mission is essential,” he said.
“We cannot achieve our objective of removing the safe havens, kicking out the Taleban, and say: ‘OK, now let’s leave’,” he added.
‘Goodbye kiss’
While visiting Baghdad on Saturday, Mr Bush said the war in Iraq was not yet over and that much work still needed to be done there.
"If you want the facts, it’s a size 10 shoe that he threw"US President George W Bush
“The work hasn’t been easy but it’s been necessary for American security, Iraqi hope and world peace,” he said during talks with President Jalal Talabani.
The Iraqi leader called Mr Bush “a great friend for the Iraqi people, who helped us liberate our country”.
Later, Mr Bush signed a security pact with Prime Minister Maliki which calls for US troops to be withdrawn from Iraq by the end of 2011. They are first to withdraw from Iraqi cities by June next year.
But in the middle of a news conference with Mr Maliki in the Green Zone, Iraqi television journalist Muntadar al-Zaidi stood up and shouted “this is a goodbye kiss from the Iraqi people, dog,” before hurling a shoe at Mr Bush which narrowly missed him.
With his second shoe, which the president also dodged, Mr Zaidi said: “This is for the widows and orphans and all those killed in Iraq.”
Mr Zaidi, a correspondent for Cairo-based al-Baghdadiya TV, was then wrestled to the ground by security personnel and hauled away.
“If you want the facts, it’s a size 10 shoe that he threw,” Mr Bush joked afterwards.
Correspondents say showing the soles of shoes is a sign of contempt in Arab culture. Iraqis threw shoes and used them to beat Saddam Hussein’s statue in Baghdad after he was overthrown in 2003.
Mr Bush’s unannounced visit to Baghdad came a day after Defence Secretary Robert Gates told US troops that the Iraq mission was in its “endgame”.
The BBC’s Sarah Morris in Washington says the presidential trip to Iraq and Afghanistan was planned with meticulous secrecy.
The accompanying journalists were asked to tell no-one other than a superior and their spouse. The White House even published a false schedule of events
This article is from the BBC News website. © British Broadcasting Corporation
Add comment December 15, 2008
Ice storm cripples north-east US
Ice storm cripples north-east US
As many as 1m people have been left without power in the north-eastern US after one of the worst ice storms in a decade crippled the electricity grid.
States of emergency have been declared in Massachusetts, New Hampshire and in parts of Maine and New York state.
Officials say the damage is extensive and it could take several days before all power is restored. Temperatures are forecast to remain below freezing.
At least four people are so far thought to have died as a result of the storm.
The body of a public works supervisor was recovered from a reservoir in Marlborough, Massachusetts, on Saturday, a day after he responded to a call about tree branches downed by the storm.
Meanwhile, a man in Danville, New Hampshire, died of carbon monoxide poisoning caused by the generator he was using to heat his camper van. A couple also died in Glenville, New York, when a generator filled their house with the gas.
A severe ice storm in December last year was blamed for the deaths of at least 22 people in the central US.
‘Extensive’ damage
About 1.4 million homes and businesses across the four affected states were left without electricity on Friday morning after a widespread overnight ice storm coated power lines, pylons and trees.
"What is facing us is the apparent need to rebuild the entire infrastructure of some sections of the electrical delivery system"Martin Murray
Public Service of New Hampshire
By Saturday evening, up to 1m remained without power, including more than 300,000 in New Hampshire, the worst affected state.
New Hampshire Governor John Lynch on Saturday warned those affected that they should not expect power to be restored for several days.
“If you don’t have power, assume that you will not get it restored today, and right now make arrangements to stay someplace warm tonight,” he said.
The state’s largest utility company, Public Service of New Hampshire, said the damage was “extensive” and that an accurate assessment was a challenge due to the many impassable roads.
“What is facing us is the apparent need to rebuild the entire infrastructure of some sections of the electrical delivery system,” Martin Murray, a PSNH spokesman, told the Associated Press.
Mr Lynch and his counterpart in Massachusetts, Deval Patrick, have declared full states of emergency and called up members of the National Guard to help.
New Hampshire has also requested a federal emergency declaration. The government had already had sent generators, cots and other supplies, state officials said.
In New York, Governor David Paterson has declared a state of emergency in 16 counties. All but five roads managed by state highway officials were cleared on Saturday, although trees are still collapsing because of ice on their branches.
The governor of Maine, where more than 170,000 were without power on Saturday, has meanwhile declared a limited state of emergency, enabling utility crews to work longer hours
This article is from the BBC News website. © British Broadcasting Corporation
1 comment December 14, 2008
Livingstone praises Menezes chief
Livingstone praises Menezes chief
Ken Livingstone has said the police officer in charge when Jean Charles de Menezes was shot has the “potential” to be a future Met Police Commissioner.
A jury returned an open verdict at the inquest into the death of Mr de Menezes, whom police mistook for a suicide bomber.
The former Mayor of London said police deserved criticism for the errors they made which led to the shooting.
But he praised Cressida Dick as the “most talented” officer he worked with.
In an interview with BBC Radio 4’s Today programme, Mr Livingstone said the police officers made mistakes because of the “unbelievable” pressure they were under.
Ms Dick, who was in command of the operation and subsequently promoted, has “commissioner potential” he says.
‘Tragic mistake’
The jury rejected the police account he was killed lawfully by two officers who shot him seven times at Stockwell Tube in south London.
His mother, Maria Otone de Menezes, said she was very happy and felt “reborn” after hearing the verdict.
The Metropolitan Police said the Brazilian’s death was a tragic mistake.
After the verdict was announced the Menezes family lawyer said officers should be investigated for perjury – a call immediately rejected by the Independent Police Complaints Commission.
The inquest jury was given the choice of two possible verdicts, but chose to reject the option that Mr Menezes was killed lawfully by the police.
THE JURY’S KEY ANSWERS- Did officers shout ‘armed police’ NO
- Did Mr de Menezes move towards officers NO
- Did difficulty in identifying the man under surveillance lead to his death NO
- Did the behaviour of Mr de Menezes increasing suspicion among officers lead to his death NO
Earlier in the inquest the jury was instructed not to return a verdict of unlawful killing.
The 10 jury members were asked 12 specific questions about whether or not a series of events on 22 July 2005 contributed to the 27-year-old’s death.
Following the verdict, the Acting Met Commissioner Sir Paul Stephenson said Mr de Menezes’ death had been a “most terrible mistake”, which he “deeply regretted”.
Home Secretary Jacqui Smith said the death was “a profoundly shocking tragedy”.
“What we have learnt from the accounts of the tragic events that day reminds us all of the extremely demanding circumstances under which the police work to protect us from further terrorist attack,” she added.
Coroner Sir Michael Wright, who presided over the three-month inquest held at the Oval cricket ground in London, had previously said the facts did not justify allowing the jury to consider an unlawful killing.
Throughout the inquest, Metropolitan Police officers told the hearings they honestly believed the Brazilian was one of the four failed bombers who attempted to strike London on 21 July 2005.
But Mr de Menezes’ family and supporters challenged this version of events.
They said they wanted answers to why surveillance officers could not identify the man they were following – and why two specialist officers shot the electrician at close range.
The Menezes family called on the CPS to re-examine the case to see whether a criminal prosecution could be brought.
They also want the IPCC to review their inquiry into the death in respect of disciplinary action against police officers and are calling on the home secretary to suspend the “shoot-to-kill” policy.
They plan to apply for judicial review of the coroner’s decision not to offer the jury the option of returning a verdict of unlawful killing.
The coroner will write to the acting commissioner, the home secretary and the Metropolitan Police Authority to raise issues over police practices
This article is from the BBC News website. © British Broadcasting Corporation
Add comment December 13, 2008
Yellow matter – archaeologists find the UK’s ‘oldest human brain’
Yellow matter – archaeologists find the UK’s ‘oldest human brain’
Archaeologists have found the remains of what could be Britain’s oldest surviving human brain.
The team, excavating a York University site, discovered a skull containing a yellow substance which scans showed to be shrunken, but brain-shaped.
Brains consist of fatty tissue which microbes in the soil would absorb, so neurologists believe the find could be some kind of fossilised brain.
The skull was found in an area first farmed more than 2,000 years ago.
More tests will now be done to establish what it is actually made of.
The team from York Archaeological Trust had been commissioned by the university to carry out an exploratory dig at Heslington East, where campus extension work is under way.
The skull was discovered in an area of extensive prehistoric farming landscape of fields, trackways and buildings dating back to at least 300 BC.
Preservation
The archaeologists believe the skull, which was found on its own in a muddy pit, may have been a ritual offering.
"There is something unusual in the way the brain has been treated, or something that it’s been exposed to that has preserved the shape of it"York Hospital neurologist
It was taken to York University where CT scans were used to look at the skull’s contents.
Philip Duffey, the consultant neurologist who carried out the scans, said the find was “amazing”.
“It’s exciting that scanning has shown structures which appear to be unequivocally of brain origin.
“I think that it will be very important to establish how these structures have survived, whether there are traces of biological material within them and, if not, what is their composition.”
He added: “This could be the equivalent of a fossil. The brain itself would generally not survive. Fatty tissues would be feasted on by microbes.
“This isn’t like the remains found in bogs; it doesn’t have any skin on the skull or any tissue remains elsewhere.
“There is something unusual in the way the brain has been treated, or something that it’s been exposed to that has preserved the shape of it.”
TB victim
Dr Sonia O’Connor, research fellow in archaeological sciences at the University of Bradford added: “The survival of brain remains where no other soft tissues are preserved is extremely rare.
“This brain is particularly exciting because it is very well preserved, even though it is the oldest recorded find of this type in the UK, and one of the earliest worldwide.”
The find is the second major discovery during investigations at the site.
Earlier this year, a team from the university’s department of archaeology unearthed a shallow grave containing the skeleton of a man believed to be one of Britain’s earliest victims of tuberculosis.
Radiocarbon dating suggests that the man died in the fourth century, the late-Roman period.
The Vice-Chancellor of the University of York, Professor Brian Cantor, said: “The skull is another stunning discovery and its further study will provide us with incomparable insights into life in the Iron Age.”
Specialists now hope to carry out further tests on the skull to establish how it has survived for so long, and perhaps more about the person whose brain it was
This article is from the BBC News website. © British Broadcasting Corporation
Add comment December 12, 2008
Many allowance calls unanswered
Many allowance calls unanswered
Thousands of students who called a helpline for advice about unpaid education maintenance allowances were unable to get through, figures show.
More than 174,000 – or 45% – of calls to the learner support helpline went unanswered in September, as the EMAs fiasco in England reached its height.
The Tories found more than 90,000 calls (35%) were also unanswered in October.
Thousands of students did not receive their EMAs at the start of term after the company Liberata failed to deliver.
In November, the company was stripped of its contract to administer EMAs.
CALLS UNANSWERED- September: 174,685 (45% of calls)
- October: 91,928 (35% of calls)
- November: 45,608 (43% of calls)
The allowances are now in the hands of Capita, the company which had formerly administered EMAs on behalf of the Learning and Skills Council (LSE).
Figures obtained by the Conservatives show calls to the helpline this September (389,196) were more than double the number received the previous September (180,215), when Capita was in charge.
Shadow schools minister Nick Gibb said: “This underlines the scale of the government’s EMAs fiasco.
“Tens of thousands of teenagers were desperately chasing their applications but nearly half of them weren’t even able to get through.
“We need an independent inquiry to establish how the government failed to deliver this year’s payments successfully so we can avoid the same situation next year.
“In the meantime, we need to make sure every eligible teenager who is still waiting for an EMA starts receiving payments before financial hardship forces them out of college.”
In response to a parliamentary question about the helpline from Tory MP Justine Greening, the chief executive of the LSC, Mark Haysom, said Capita was now handling enquiries.
He told Ms Greening in a letter: “Although the transfer will not immediately fix all the helpline and processing problems, it will help us to improve the future service for young people, colleges and learning providers.”
EMAs are paid to about 600,000 teenagers from low-income families as an incentive to stop them dropping out of education.
Although the scheme is UK-wide, only England has been affected by the delays in payment.
Did you try to call the helpline Did you spend hours being held in a queue Send us your comments using the form below.<p
This article is from the BBC News website. © British Broadcasting Corporation
Add comment December 11, 2008
Universities ‘may face deficit’
Universities ‘may face deficit’
By Hannah Richardson
BBC News education reporter
Serious concerns have been raised about the future financial sustainability of the UK’s universities.
The higher education sector overall is predicting a 4% “real terms” deficit – partly due to a £2bn shortfall in research funding and high staff costs.
Some universities have surpluses, but many are not setting aside enough for future challenges, a report by university employers and unions said.
UK universities’ global standing could be damaged as a result, it added.
According to the Joint Negotiating Committee for Higher Education Staffs Review of Higher Education Finance and Pay Data, universities in the UK are predicting an average surplus of 1.6% for the end of the financial year.
"There is a risk that the quality, innovativeness and international standing of UK higher education could fall"Joint Negotiating Committee for Higher Education Staff report
But once these are adjusted to reflect the “real economic cost” of their assets, through an accountancy costing system known as Trac, a deficit of about 4% is more likely for 2008-9.
The Trac system is accepted by government and university managers to give a more appropriate indicator of financial health.
The report found universities in general held very low levels of cash – just enough to cover their working costs.
And that the number of days of net liquidity for the sector had reduced to 52 days for 2009-10, from 68 days in 2005-6.
This meant universities were not setting enough money aside to assure a “sustainable future”, the report said.
Overseas students
The report also notes that HEIs will inevitably revise their projections in the light of more recent economic developments and the uncertainties these bring.
Part of the underlying problem was that universities’ research budgets face an overall deficit of £2bn – a third of their £5.9bn income.
This was partly due to the bodies that fund research; charities, industry, the EU and government departments, providing below cost funding, the report claimed.
"If the UK is to remain one of the world’s leading providers of higher education, it must continue to invest in its universities"Universities UK
But it also warned that many universities did more research than they could fund.
The report also said universities faced new financial challenges and risks which were weakening their ability to innovate and advance as fast as competitors.
And the very countries that the UK takes most of its non-EU overseas students from, India, China, Singapore and Malaysia have seen huge growth in their own universities.
“There is a concern that as the universities in these countries become more mature and attractive, the UK may lose a significant source of students and income, and this could damage the financial position of a significant number of UK institutions.”
The report added: “Institutions are doing what they can to manage this, but there is a risk that the quality, innovativeness and international standing of UK higher education could fall with potentially damaging impacts on the national economy and reputation.”
‘Pensions deficit’
The report also noted that staffing costs, following the 13% three-year pay deal agreed in 2006, had risen at a faster rate than universities’ grants.
But these extra costs have been managed so far by the extra income from variable tuition fees.
The report said also warned of potentially serious risk of pension deficits.
And things were likely to get worse in the light of the economic downturn, the report for university employers said.
The report from the Joint Negotiating Committee for Higher Education Staff was commissioned after the university lecturers pay dispute of 2006 which saw thousands of students’ work go unmarked.
It aimed to lift the lid on university finances and avoid troubled pay negotiations in the future by agreeing new ways of working.
A Universities UK spokesman said institutions were operating at below the recommended levels of surplus and would be looking for sustainable university funding in the next spending review.
He added: “As the latest OECD figures show, many countries are now catching up or indeed have overtaken the UK in terms of investment in higher education.
“If the UK is to remain one of the world’s leading providers of higher education, it must continue to invest in its universities.
“Improved financial stability, along with strong management and leadership, will ensure a healthy higher education sector that benefits everyone.
This article is from the BBC News website. © British Broadcasting Corporation
Add comment December 10, 2008
Christmas crisis
By Mark Simpson
BBC Ireland correspondent
Retailers have removed pork bred in both Northern Ireland and the Irish Republic from sale amid concerns about toxin contamination. So, what next for farmers
It’s been dubbed the “Christmas crisis” and the Irish pig industry faces a miserable New Year.
Of all the times for there to be a food scare surrounding pork, the festive period is easily the worst.
“This is supposed to be our harvest time,” said one pig farmer, as he contemplated an immediate future in which Irish pork was deemed damaged goods.
It might be only in the short-term but the lesson from previous food scares is that even the best agricultural reputations take a long time to repair.
In farm parlance, mud thrown is ground lost.
Farmers are being affected on both sides of the Irish border.
Ireland’s multimillion-euro pig industry could lose 100,000 animals, thousands of jobs and countless customers.
The suspected contaminated pig meal originated in the South but it may have been used by some farms in the North. Tests are continuing.
"The quicker we can prove that the Northern Ireland product is safe to eat – the less damage will be done"Norman Robson
Farmer Shops told to remove Irish pork
In the meantime, slaughtering has been put on hold.
Norman Robson, from Doagh in Co Antrim, has over 300 sows, and sells around 160 pigs a week.
He says the contamination scare has been damaging.
“Unless this clears up, very clearly it’s going to have a major impact. ”
However, consumer confidence may already have been hit.
“The quicker we can prove that the Northern Ireland product is safe to eat, the less damage will be done.”
Across Belfast, Dublin and many other cities, Irish pork is now off the menu.
Big supermarkets removed the products from their shelves, butchers put the meat into cold storage and in one east Belfast cafe, pea and ham soup simply became pea soup.
The nightmare scenario is that the scare extends beyond pork and into the beef market.
The Irish countryside is buzzing with rumours and counter rumours. So, what’s the truth
Dire consequences
BBC Northern Ireland’s agriculture correspondent Richard Wright says the suspect pig feed was also fed to some cattle but there is no need to panic.
“Carcasses from the Republic have been tested and the hope is that they will show no evidence of the dioxins,” he said.
“This is because any levels would have been low – and because the animals would eat small amounts of grain.
“After a meeting with the Food Standards Agency, the president of the Meat Exporters Association said they are confident it will be a case of business as usual for the beef industry.”
So when will the Irish pork industry return to normal
No-one knows for sure. Even if it happens soon, this damaging episode will leave a bad taste in the mouth.
At a time of recession, anything that hits consumer confidence can have dire consequences
This article is from the BBC News website. © British Broadcasting Corporation
Add comment December 9, 2008
