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Shake up child protection – review

Munro report to recommend that social workers are given more autonomy to exercise their professional skills and judgment Child protection social workers should be freed up from box-ticking bureaucracy to give them more time to work with families and at-risk youngsters, a government-commissioned report was due to say on Tuesday. The review of safeguarding practice by Professor Eileen Munro will recommend that excessive centrally imposed targets and regulations are ripped up, and practitioners are given more autonomy to exercise their professional skills and judgment. It will also call for the establishment of a chief social worker to speak nationally for the whole of social work, and for child protection social work teams to be allowed to leave the councils and set up in professional practices. Munro was commissioned last year by the education secretary, Michael Gove, to look at a system he said was too bureaucratic, unaccountable and obsessed with procedures and targets. Although the profession is expected to welcome the report, there will be concerns that any improvements in practice that come through the proposed changes will not be enough to offset increasing demands on children’s social work departments at a time when many are facing serious spending cuts and difficulties in recruiting staff. Munro’s insistence on the importance of keeping the director of children’s services role introduced under the last government to oversee child protection locally may also prove problematic. It is estimated that around a fifth of council social work departments in England have started to unpick the reforms introduced seven years ago which vested responsibility for both schools and safeguarding in this post. The review’s final report was expected to say that: • Local authorities should be given greater freedom to develop their own approaches to handling case work, rather than being bound by statutory guidance • Councils should develop ways of keeping experienced senior social workers in front line work so they can better supervise junior practitioners • The excessive burden of inspection on child protection departments should be lifted, and the inspectorate, Ofsted, should not evaluate serious case reviews into child deaths Munro will also recommend that the social work profession be more open and transparent in talking about the pressures and dilemmas faced by safe-guarders, particularly at times of crisis, such as the Baby P case. Child protection Children Social care Baby P Patrick Butler guardian.co.uk

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Shake up child protection – review

Munro report to recommend that social workers are given more autonomy to exercise their professional skills and judgment Child protection social workers should be freed up from box-ticking bureaucracy to give them more time to work with families and at-risk youngsters, a government-commissioned report was due to say on Tuesday. The review of safeguarding practice by Professor Eileen Munro will recommend that excessive centrally imposed targets and regulations are ripped up, and practitioners are given more autonomy to exercise their professional skills and judgment. It will also call for the establishment of a chief social worker to speak nationally for the whole of social work, and for child protection social work teams to be allowed to leave the councils and set up in professional practices. Munro was commissioned last year by the education secretary, Michael Gove, to look at a system he said was too bureaucratic, unaccountable and obsessed with procedures and targets. Although the profession is expected to welcome the report, there will be concerns that any improvements in practice that come through the proposed changes will not be enough to offset increasing demands on children’s social work departments at a time when many are facing serious spending cuts and difficulties in recruiting staff. Munro’s insistence on the importance of keeping the director of children’s services role introduced under the last government to oversee child protection locally may also prove problematic. It is estimated that around a fifth of council social work departments in England have started to unpick the reforms introduced seven years ago which vested responsibility for both schools and safeguarding in this post. The review’s final report was expected to say that: • Local authorities should be given greater freedom to develop their own approaches to handling case work, rather than being bound by statutory guidance • Councils should develop ways of keeping experienced senior social workers in front line work so they can better supervise junior practitioners • The excessive burden of inspection on child protection departments should be lifted, and the inspectorate, Ofsted, should not evaluate serious case reviews into child deaths Munro will also recommend that the social work profession be more open and transparent in talking about the pressures and dilemmas faced by safe-guarders, particularly at times of crisis, such as the Baby P case. Child protection Children Social care Baby P Patrick Butler guardian.co.uk

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Schwarzenegger separates from wife

Former California governor Arnold Schwarzenegger announces separation from wife Maria Shriver Former California governor Arnold Schwarzenegger and his wife Maria Shriver are separating “while we work on the future of our relationship”. The announcement on Monday came four months after Schwarzenegger, an Austrian-born bodybuilder turned Hollywood action star, left office in January. “This has been a time of great personal and professional transition for each of us,” Schwarzenegger, 63, and Shriver, 55, said in a statement. “After a great deal of thought, reflection, discussion, and prayer, we came to this decision together.” The couple, who met at a charity tennis tournament in 1977 and married in 1986, did not mention whether they would divorce. “We are continuing to parent our four children together. They are the light and the centre of both of our lives,” the statement said. “We consider this a private matter, and neither we nor any of our friends or family will have further comment.” The couple had maintained their home in the Brentwood area of Los Angeles during Schwarzenegger’s two terms as governor, with him commuting by jet to the state capital in Sacramento. Schwarzenegger said in February he was ready to make movies again and announced recently he was developing a television show and comic book based on his political nickname “The Governator”. An industry source said last month that Schwarzenegger was likely to star in a new “Terminator” movie that would reprise his most famous role as the almost indestructible cyborg from the future. Shriver, an author and former journalist for NBC, is active with a number of volunteer organisations. Her mother was the sister of assassinated US president John F Kennedy and her father, Sargent Shriver, was the Democratic candidate for vice president in 1972. Shriver’s father died in January at the age of 95. Although a lifelong Democrat, Shriver campaigned for her Republican husband when he sought to recall and replace then-governor Gray Davis, a Democrat, in 2003. She tried to help Schwarzenegger win re-election in 2006. Arnold Schwarzenegger United States US politics guardian.co.uk

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Schwarzenegger separates from wife

Former California governor Arnold Schwarzenegger announces separation from wife Maria Shriver Former California governor Arnold Schwarzenegger and his wife Maria Shriver are separating “while we work on the future of our relationship”. The announcement on Monday came four months after Schwarzenegger, an Austrian-born bodybuilder turned Hollywood action star, left office in January. “This has been a time of great personal and professional transition for each of us,” Schwarzenegger, 63, and Shriver, 55, said in a statement. “After a great deal of thought, reflection, discussion, and prayer, we came to this decision together.” The couple, who met at a charity tennis tournament in 1977 and married in 1986, did not mention whether they would divorce. “We are continuing to parent our four children together. They are the light and the centre of both of our lives,” the statement said. “We consider this a private matter, and neither we nor any of our friends or family will have further comment.” The couple had maintained their home in the Brentwood area of Los Angeles during Schwarzenegger’s two terms as governor, with him commuting by jet to the state capital in Sacramento. Schwarzenegger said in February he was ready to make movies again and announced recently he was developing a television show and comic book based on his political nickname “The Governator”. An industry source said last month that Schwarzenegger was likely to star in a new “Terminator” movie that would reprise his most famous role as the almost indestructible cyborg from the future. Shriver, an author and former journalist for NBC, is active with a number of volunteer organisations. Her mother was the sister of assassinated US president John F Kennedy and her father, Sargent Shriver, was the Democratic candidate for vice president in 1972. Shriver’s father died in January at the age of 95. Although a lifelong Democrat, Shriver campaigned for her Republican husband when he sought to recall and replace then-governor Gray Davis, a Democrat, in 2003. She tried to help Schwarzenegger win re-election in 2006. Arnold Schwarzenegger United States US politics guardian.co.uk

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Handguns allowed in Texas colleges

Republicans in state senate pass ‘self-defence’ measure despite resistance from higher education officials The holders of concealed handgun licences are set to be allowed to carry weapons into public college buildings and classrooms in Texas, after Republicans in the state senate approved the measure as part of a universities spending bill. Republican senator Jeff Wentworth had been unable to gain the votes he needed to pass the issue as its own bill after it met stiff resistance from higher education officials, particularly from within the University of Texas UT-System. The senate’s 12 Democrats had mostly worked together to block the measure but were powerless to stop it on Monday when a majority in the 31-member chamber got it added to the spending bill as an amendment. Supporters hope the vote will help push the measure past a roadblock in the house, where a similar bill has been stuck without a vote in that chamber with just a few weeks left in the legislative term. “Campus carry has more momentum than a runaway freight train,” said Scott Lewis of Students for Concealed Carry, a nationwide group backing the measure. Supporters call it a self-defence and guns rights issue. UT-System chancellor, Francisco Cigarroa, wrote to politicians and Governor Rick Perry outlining concerns that the measure will lead to more campus crime and suicides. Hearings were dominated by testimony from supporters who had been raped or assaulted on college campuses, and several people who had survived the 2007 mass shooting at Virginia Tech University when a gunman killed 32 people. Democratic senator Judith Zaffirini, who was a student at the University of Texas in 1966 when sniper Charles Whitman killed 12 people and wounded dozens of others, argued against the bill. She predicted mass chaos if police responded to a call and found several people with guns drawn. “I can’t imagine the horrors if this passes,” Zaffirini said. Wentworth, recalling the shooting at Virginia Tech, said he wanted to give students a chance to defend themselves. “There was no one there to defend themselves in a gun-free zone that was a victim-rich zone,” he said. “I’m trying to avoid that type of situation.” Texas passed its concealed handgun licence law in 1995. Licence holders must be at least 21 and pass a training course. Guns on campus bills have been rejected in at least 23 states since 2007. The bill originally covered private universities, but was changed to cover only public institutions of higher education. The senate rejected attempts to allow university boards of regents to decide gun policy on their campuses. Concealed handgun licence holders in Texas are allowed to skip metal detectors in the state capitol,. Perry made headlines for shooting a coyote on a morning jog last year. Earlier on Monday, senators voted to allow themselves to carry concealed handguns into places the rest of the public cannot, such as churches, restaurants and sporting events. Perry has said he supports the campus guns measure and is expected to sign it into law if it reaches his desk. US gun control United States guardian.co.uk

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Handguns allowed in Texas colleges

Republicans in state senate pass ‘self-defence’ measure despite resistance from higher education officials The holders of concealed handgun licences are set to be allowed to carry weapons into public college buildings and classrooms in Texas, after Republicans in the state senate approved the measure as part of a universities spending bill. Republican senator Jeff Wentworth had been unable to gain the votes he needed to pass the issue as its own bill after it met stiff resistance from higher education officials, particularly from within the University of Texas UT-System. The senate’s 12 Democrats had mostly worked together to block the measure but were powerless to stop it on Monday when a majority in the 31-member chamber got it added to the spending bill as an amendment. Supporters hope the vote will help push the measure past a roadblock in the house, where a similar bill has been stuck without a vote in that chamber with just a few weeks left in the legislative term. “Campus carry has more momentum than a runaway freight train,” said Scott Lewis of Students for Concealed Carry, a nationwide group backing the measure. Supporters call it a self-defence and guns rights issue. UT-System chancellor, Francisco Cigarroa, wrote to politicians and Governor Rick Perry outlining concerns that the measure will lead to more campus crime and suicides. Hearings were dominated by testimony from supporters who had been raped or assaulted on college campuses, and several people who had survived the 2007 mass shooting at Virginia Tech University when a gunman killed 32 people. Democratic senator Judith Zaffirini, who was a student at the University of Texas in 1966 when sniper Charles Whitman killed 12 people and wounded dozens of others, argued against the bill. She predicted mass chaos if police responded to a call and found several people with guns drawn. “I can’t imagine the horrors if this passes,” Zaffirini said. Wentworth, recalling the shooting at Virginia Tech, said he wanted to give students a chance to defend themselves. “There was no one there to defend themselves in a gun-free zone that was a victim-rich zone,” he said. “I’m trying to avoid that type of situation.” Texas passed its concealed handgun licence law in 1995. Licence holders must be at least 21 and pass a training course. Guns on campus bills have been rejected in at least 23 states since 2007. The bill originally covered private universities, but was changed to cover only public institutions of higher education. The senate rejected attempts to allow university boards of regents to decide gun policy on their campuses. Concealed handgun licence holders in Texas are allowed to skip metal detectors in the state capitol,. Perry made headlines for shooting a coyote on a morning jog last year. Earlier on Monday, senators voted to allow themselves to carry concealed handguns into places the rest of the public cannot, such as churches, restaurants and sporting events. Perry has said he supports the campus guns measure and is expected to sign it into law if it reaches his desk. US gun control United States guardian.co.uk

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China’s trade surplus up to $11.4bn

After the country reported a rare trade deficit for the start of this year, China has showed a strong rebound for April but it is likely to fuel US calls to revalue its currency China reported an unexpectedly large April trade surplus, in an announcement that is likely to fuel US pressure over currency controls and market access as American and Chinese officials hold high-level talks in Washington. China’s global trade surplus widened to $11.4bn (£7bn) as import growth fell amid government efforts to cool an overheated economy and exports rose by nearly 30%, data showed on Tuesday. The gap exceeded forecasts of $5bn to $10bn and was a strong rebound after China reported a rare trade deficit in the first quarter of this year. China’s trade gap has angered Washington and other trading partners who blame currency controls and other policies which they say are hampering trade and a global recovery. At the start of two days of talks in Washington, US treasury secretary Timothy Geithner pressed China’s envoys on Monday to allow the yuan to rise faster against the dollar. That might help to boost Chinese imports, narrowing the American trade surplus with China, which hit an all-time high last year. China’s commerce minister, Chen Deming, responded that yuan appreciation was being carried out in a “very healthy manner”. He said the United States needed to change its policies on high-tech sales and investment to spur American manufacturing. Beijing has allowed the yuan to rise about 5% against the dollar since it promised more exchange rate flexibility last June but American manufacturers and others say the currency still is undervalued. The yuan’s link to the dollar means it has declined against the euro as the American currency weakened over the past year. China’s April trade surplus with the United States rose 52% over a year ago to $15.1bn. The gap with the European Union, China’s biggest trading partner, narrowed slightly to a still large $10.3bn. Foreign manufacturers complain China’s trade surplus also is swelled by policies that hamper imports and encourage companies to shift production to China. The country’s global trade gap, up from just $1.7bn in April 2010, reflected a slowdown in demand for imports as Beijing tries to cool an economy that grew by 9.7% in the first three months of this year. China’s trade surplus usually narrows early in the year as manufacturers restock following the Christmas export rush. This year’s decline was unusually large due to high prices for oil and other commodities. China recorded a trade deficit for the first three months of 2011 and a surplus of just $140m for March. Still, analysts expect China to show a global trade surplus for the year of $160bn to $200bn. Last year, China ran a trade surplus of about $16bn a month. Economics China Global economy Currencies US economy guardian.co.uk

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UK-trained force ‘allowed to torture’

Human Rights Watch calls for Rapid Action Battalion to be disbanded and for UK and US to withdraw support The Bangladeshi government has allowed a British-trained paramilitary force to secretly detain, torture and kill hundreds of people with impunity over the past two years, a report warns. The report, released by the New York-based NGO, Human Rights Watch, catalogues a series of extrajudicial killings, forced disappearances and deaths in custody of the Rapid Action Battalion. Citing a lack of redress for victims, and the government’s dismal record of failing to prosecute a single perpetrator, the NGO has called on the Bangladeshi government to disband the RAB and for the UK and US to withdraw support unless they take active steps to hold the force to account. Torture methods listed in the report include burning with a hot iron, and beatings so severe that a victim’s legs were “smashed and did not retain their usual shape; they were flattened”. Mahabub Khokon told researchers that when he collected the body of his brother, Mohiuddin Arif, from the morgue after he was arrested by the RAB in February last year, repeated assaults had turned his legs green, skin had been scraped off several areas of his body, and his feet were swollen and looked as if they were “falling apart”. The 54-page report cites another instance from March this year, when a 34-year-old shopkeeper, Rasal Ahmed Bhutto, was picked up in the street outside a friend’s shop in the capital, Dhaka, by men in plain clothes. A week later he was found shot dead and slumped against a nearby wall. British police have helped train RAB teams since 2007, around the time that UK intelligence agencies began seeking closer counter-terrorism co-operation with the RAB and Bangladeshi intelligence agencies. On Monday, a Foreign Office spokesman said the UK government raised issues of human rights abuses by the RAB “at every opportunity”. He added: “We are not currently providing any training for the RAB at all.” The HRW report details how nearly 200 people have been killed in RAB operations since the Awami League government came to power in January 2009. Asia director, Brad Adams, commented how the party had pledged to end extrajudicial killings while in opposition. He said: “After two years in office, the government has had more than enough time to take action to stop the RAB’s murderous practices. A death squad is roaming the streets of Bangladesh and the government does not appear to be doing anything to stop it.” In December, the Guardian reported on US diplomatic cables leaked by Wikileaks which revealed that British police officers from the National Policing Improvement Agency had been travelling to Dhaka to train members of the RAB in “investigative interviewing techniques” and “rules of engagement”. The US and UK view the RAB as their most effective counter-terrorism partner in the region and have expressed a strong interest in increasing co-operation, according to Human Rights Watch. The Foreign Office defended themselves against the ensuing outcry by saying the NPIA had been training RAB in human rights and ethical policing. However, a course in counterterrorism which had been scheduled to take place in January was then cancelled due to a “lack of trainers”, according to officials. The Guardian has learned that Anthony Layden, Britain’s former ambassador to Libya, had been lined up for the training. Bangladesh Military Police Fariha Karim guardian.co.uk

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Social care cuts victims ‘are invisible’

The most vulnerable sections of society are emerging as the worst hit by council cuts If he’s lucky, Frank Bailey gets a good night’s sleep twice a week. The rest of the time he is on call and spends the small hours worrying, waiting for a bell to ring, to signal at best that his sick wife, Faith, needs help out of bed; at worst that she is struggling for breath and he will have to call paramedics to take her to hospital. At 80, Frank suffers from angina, arthritis and limited use of his left arm because of tendon problems. He has been a carer for Faith since she was diagnosed with life-limiting heart and lung disease four years ago. Asked what is wrong with her, Faith, 72, lets out a sigh, shakes her head and then, rummaging in her handbag, hands over a well-worn piece of paper on which is typed a catalogue of afflictions: diabetes, heart disease, hypertension, asthma, osteoporosis, lung disease. She can no longer walk and a small tube delivering oxygen to her lungs that her body can’t provide is permanently attached to her nostrils. “My brain’s still working, but that’s about it,” she says. “The heart is the bit that’s failing the most.” Faith’s illness was considered so severe that her local authority, Birmingham city council, provided her with overnight carers three nights a week. But several months ago, after a spell in hospital, the Baileys were told that it was being cut back from three nights a week to two. “It doesn’t sound much,” says Frank, a former milkman, as he sits hand-in-hand with his wife of 40 years. “But it makes a big difference to me. They used to come Monday, Wednesday and Friday, which was all right as, if you have a weekend, one of the granddaughters might stop over. I knew that every couple of nights I’d have a break. I could get some sleep. I don’t sleep when they’re not here because her breathing might go. Some nights you do, some nights you don’t.” The couple, who have two children and six grandchildren and recently became great-grandparents, are among thousands of Britain’s most vulnerable citizens who have seen their home care cut over the past year. Already bearing the brunt of welfare changes at a time of financial hardship, with worse to come as local authorities implement this year’s savage cuts, the disabled and the cared-for are facing an uncertain future. In Birmingham, which has restricted free social care to those who have “critical” needs, elderly and disabled people such as the Baileys are more worried about what’s around the corner than most. The shift in eligibility, described as “catastrophic and counterproductive” by disability campaigners, is aimed at saving the council £17.5m this year and £52m over the next three years, according to its business plan for 2011. Those affected will include people with conditions such as dementia, Parkinson’s disease and diabetes. An estimated 4,100 of Birmingham’s council-funded care users have been assessed as having “substantial” but not critical needs, and face losing their care packages altogether. Others face losing some of their home care. The Baileys do not know whether their needs have been assessed as critical or substantial and are unsure if they are among those most at risk. Restricting eligibility is a controversial move: according to Department of Health guidance, people with substantial needs include those who have suffered abuse or neglect, those unable to carry out the majority of care or domestic routines, and those for whom social support systems and relationships cannot or will not be maintained. However, in an interim decision that is being closely watched by the caring community, a high court judge ruled last month that Birmingham council’s care-cutting business plan is unlawful. In a judicial review brought by the families of four severely disabled people, Mr Justice Walker found that, in making the plan, council leaders had failed to consider their duty to disabled people. Public authorities have a duty under the Disability Discrimination Act to encourage disabled people to participate in public life and to take steps to meet their disabilities, even when that involves treating them more favourably than others. One of the four who brought the case, who cannot be named for legal reasons, told journalists she felt it important to take a stand against the council’s decision. She feared it would extinguish the 24-hour care in a home, paid for by the council, provided for her sister-in-law, 65, who has severe learning difficulties, and that her quality of life would fall dramatically as a result. The judgment, although welcomed by disability campaigners, has created anxiety in some quarters as no one knows what the outcome will be and whether the council will appeal. In a statement issued after the interim decision, Birmingham city council said: “Like all councils, Birmingham faces a huge financial challenge, with adults and communities having to make a share of the savings like all other directorates, and we need to assess the impact of this decision.” There can be no further assessment of social care needs until Walker delivers his full judgment, expected next week, but the vacuum has created its own problems. Nearly one in four disabled and older people have experienced cuts to services and increased charges for care, with families “pushed to breaking point”, according to a recent report from a group of charities. In a survey conducted by charities including Carers UK, the Alzheimer’s Society, Macmillan Cancer Support and Scope, more than a fifth of respondents said services had been cut back even though their needs had stayed the same. More than half said they had seen their health suffer, 52% said they were struggling to maintain their independence, and half said increased charges for care meant they could no longer afford essentials such as food and heating. As part of its plans to restrict social care, Birmingham council, a Conservative-Liberal Democrat coalition, said it would “signpost” those no longer eligible towards possible alternative sources of support, such as the voluntary sector. But in Kingstanding, north Birmingham, home to the Baileys and one of the poorest areas in the city, the voluntary sector aimed at supporting elderly and disabled people is itself struggling to survive. Jackie Dray, a former social worker, has run the support group Elders with Attitude for two years. Aimed at giving carers a break and the cared-for confidence, it has been a lifeline for the Baileys and others like them. Faith Bailey, who talks with candour about the blackness that threatens to engulf her, says: “I love that group. Otherwise it’s just the four walls. I was scared at first, but Jackie makes you feel wanted. She makes me feel that she cares. I get upset sometimes, I cry. But she tells me to aim for the stars.” Dray, who is adored by her charges, used to run four groups in Birmingham, but was told in March that her £30,000 council grant was to be cut altogether. She now runs only one group and is looking for alternative funding. She says: “They are cutting luncheon clubs or groups like mine that could make a difference between somebody remaining in the community or sinking into clinical depression and residential care. For a small amount of money, you could delay the point at which people have to go into hospital. I see a lot of clinical depression in carers and cared-for alike. People are teetering on the brink. There’s a lot of frustration, worry, lack of sleep.” At Witton Lodge community centre in Kingstanding, at a meeting for carers and charities organised by Jack Dromey, the local Labour MP, one person after another stands up to talk about cuts in funding. Bernie Blackledge, of Alzheimer’s UK, which runs four cafes each used by between 40-50 families, spoke of how cuts in council funding had led her to make good, experienced cafe staff redundant. The council has since found additional funding, she says, but the damage has already been done, the staff gone. “What are we supposed to do?” she says. Margaret Binns, of Age Concern Kingstanding, who advises elderly people on benefits and welfare, describes her office as the “last-chance saloon. After us, there’s nothing.” The charity, which also runs two day centres for people with dementia or physical disabilities, has had a 15% reduction in funding. Pauline Pullen, the chief executive, said: “If we close our services down, where do people go? People with memory loss are very vulnerable and if they live with a carer, it is very stressful to care for them. Day care is vital for both of them.” Dromey said: “The tragedy about the cuts to care is that the people concerned are invisible. If care packages are cut, if caring organisations go under, the vulnerable go back to their houses and no one ever hears from them again. The true responsibility lies with the government who are inflicting the biggest cuts in local government history and creating nigh-on impossible problems for local government. But councils have to reflect on their responsibilities.” Whatever the outcome of the high court judgment, it will not be enough to help the Baileys. Faith says she cried when she was told her night carers were being cut. “Frank’s getting old. I know he’s 80 but in the last few months, I’ve really seen it in him. I don’t like to see him struggling. He says he doesn’t find it hard, but I can see he’s in pain.” Disability Public sector cuts Public services policy Health policy Welfare Social care Public finance Karen McVeigh guardian.co.uk

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Microsoft closes $8bn Skype deal

Business experts question whether internet phone service Skype could be worth price after recording losses last year Microsoft is reported to have closed a $8.5bn (£5bn) deal for the internet phone service Skype, in a deal that has shocked analysts who think it would be a substantial overpayment for the company. The acquisition, which is expected to be announced on Tuesday, would be Microsoft’s biggest, ahead the $6bn it paid for online advertising company aQuantive in 2007, and would bring it 660 million users worldwide while giving it a foothold in voice and video communications. Analysts suggested the service could be integrated into existing Microsoft products such as its Xbox 360 games console and Kinect gaming systems, or even into its flagship Office product to let users collaborate more effectively. Speculation has been rife in Silicon Valley for months about Skype’s future. Rumours last week suggested Facebook, Google or Cisco Systems were interested in acquiring it to fold into their own services. Tony Bates, the chief executive hired from Cisco last year, has reportedly been exploring the idea of joint ventures or a sale to Google and Facebook. News of the deal and Microsoft’s interest in Skype was first reported by the Wall Street Journal online and the technology site GigaOM. Analysts have broadly favoured the idea of the deal, but questioned whether it could ever be worth the price. Skype was bought by eBay for $2.6bn in 2005: at the time people suggested its services could be incorporated into auctions so that bidders or sellers could call each other ahead of their close. But the synergistic ideas never materialised, and eBay wrote down Skype’s value by $1.4bn, before selling off a 70% stake at the end of 2007. Ironically, the suggested price would make its 30% stake worth $2.4bn – effectively making money on the deal long-term. Skype has debt of $686m, which Microsoft would assume in the purchase. Microsoft’s online efforts have been staggering loss-makers over the past few years. Its online service division, which includes its Bing search engine, has lost $8bn over the past six years, and has not been profitable since the end of 2005. Google previously looked at purchasing Skype in 2005, but decided against it because of questions over patent ownership – essential patents for the service are owned by a company linked to Skype’s founders – and doubts about integration into its own offerings. Microsoft already has a voice-over-internet offering, called Lync, which combines email, instant messaging and voice communications into a single program. That is run by its huge Office division, one of Microsoft’s two biggest profit centres along with the Windows division. While Skype has a name among consumers, it has barely bumped along on profitability. With 663 million registered users, most of its services are free, using internet connections for make calls between computers or in some cases internet-enabled phones. It makes revenues on voicemail services and calls to physical landlines or mobile numbers. In 2010 it recorded a loss of $7m on revenues of $859.8m, and there has been little sign that it will gain traction there. Mobile carriers tend to see Skype as a threat to their own services, because it allows people to make calls for free via data links rather than over voice connections, and have been reluctant to route its traffic. Though Microsoft is keen to push its Windows Phone mobile operating system, it is not clear whether it could keep carriers sweet while incorporating that. Microsoft rarely makes large purchases, preferring to buy smaller startups. It made an ill-fated $48bn bid for Yahoo in January 2008, which was opposed and fell apart. Since then Yahoo’s value has halved and Microsoft has taken over its search business, but in their latest quarterly results the companies revealed that integration had been more difficult than they expected. In 2004 it also explored a takeover of the corporate integration software company SAP for $50bn, but that too stalled. Skype Internet Telecoms Microsoft Computing Charles Arthur guardian.co.uk

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