With no new money for defence budget, critics say settlement is simply storing up problems for the future The Ministry of Defence and the Treasury have plugged a £1bn gap in the armed forces budget in a deal which was brokered by Downing Street but avoided the underlying pressures facing military spending, officials familiar with the negotations have said. “We have balanced this year’s budget, the big questions remain and are next year’s problem,” a senior defence source said. “We have stored up more pain for later on,” another source said. The Treasury has not provided any new money for the defence budget, senior officials said. Instead, plans to buy new Chinook helicopters will be delayed and will not now be delivered until British combat troops have left Afghanistan. Plans to upgrade Warrior armoured vehicles will also be put off. The MoD has agreed to impose tighter controls over a wide range of low priority spending as well as training and exercises, and has renegotiated 500 different arms contracts. “For instance, we had contracts with firms to refit ships that were going out of service, which made no sense,” a source said. The MoD also made clear that equipment identified for the axe under last year’s strategic defence review had not been reprieved. The frigate HMS Cumberland, which has been involved in operations off Libya, will be decommissioned as planned. Last month the RAF announced that two Tornado squadrons would be decommissioned in June – that will go ahead as planned. William Hague, the foreign secretary, said that while the Treasury was trying to be “helpful” to the MoD, there was no prospect of changing major decisions. However, the Treasury has agreed to pay for upgrades to Puma helicopters used by troops in Afghanistan out of the special reserve, a move that would save £250m from the core defence budget. The full cost of special allowances for troops deployed to Afghanistan – some £10m a year – will also be paid out of the Treasury’s reserve. There remains an estimated £38bn gap between what the MoD has agreed to spend on equipment and services over the next decade and the money available to it. Shadow defence secretary Jim Murphy said that ministers should now reopen the whole defence review. He added: “My worry is that if something like Libya was to happen next year when the ships and the aircraft had been sent away for scrap, then we couldn’t do the remarkable things the armed forces are doing.” Professor Malcolm Chalmers of the Royal United Services Institute warned that the MoD may simply be storing up problems for the future. “Because of Libya and also Afghanistan ongoing, it is very difficult to find areas in which to make cuts without there being very serious political problems,” he said. “This settlement will, I think, just about balance the books for this financial year that has just started with some difficulty. But it doesn’t address the medium term funding gap. We have this funding gap every year from now on for the next four years.” Military Defence policy Richard Norton-Taylor Nick Hopkins guardian.co.uk
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John Lewis reveals sales plunge in stores at Bluewater and Cribbs Causeway, in contrast to traditional shops Soaring petrol prices are hitting sales at out-of-town shopping centres as cash-strapped consumers think twice about making long journeys to retail destinations such as Cribbs Causeway in Bristol and the Metrocentre in Gateshead. As the price of oil breached $124 a barrel for the first time in two and a half years – and is now at a record in sterling terms, as a result of the weaker pound – John Lewis revealed big sales declines at its shops in key out-of-town malls, including Bluewater in Kent and Cribbs Causeway. Takings at the retailer’s Bluewater department store are down more than 9% since the end of January, with the decline accelerating to more than 12% in the most recent week. At the John Lewis store in Cribbs Causeway mall sales have tumbled more than 11% so far this year and were down more than 14% last week. City retail analyst Freddie George, at brokers Seymour Pierce, said: “With the petrol price so high, we knew this was coming and these John Lewis figures provide the first significant evidence.” The dismal sales at John Lewis’ out-of-town centres are in sharp contrast to its more traditional city centre branches and internet site. Retail research group Synovate, which monitors the number of shoppers visiting retail centres nationwide, said it had also detected a move for shoppers to stay local. The number of shoppers going through the doors of out-of-town centres fell nearly 12% in March, compared with last year, and compared with a 7% decline across all shops. With the price of oil predicted to hit $130 later this year, the cost of petrol is likely to climb even higher. Over the past year it has leaped by some 21p to its current level of around 134p a litre. Analysts say further increases will accelerate the move away from out-of-town centres as shoppers baulk at rising petrol costs. Tim Denison, director of retail intelligence at Synovate Retail Performance, said: “If petrol prices remain high, there is likely to be some kind of structural shift, with people going to out-of-town centres less frequently and spending more time there when they do. We would expect more promotion from the out-of-town centres, possibly by providing free bus services to customers, rather than expecting them to come in under their own steam.” The average shopper turning up at a regional mall like Meadowhall or Bluewater has driven around 32 miles, according to CACI, another retail research group. A shopper who decides to stay local instead will therefore save about £12 in petrol costs for the round trip. Jonathan De Mello, of property agents CB Richard Ellis, said history showed small out-of-town centres tend to suffer from rising petrol prices but that the larger ones actually benefit as shoppers ensure they visit a site “where everything is under one roof”. John Lewis played down the impact of rising petrol prices, arguing that the weather and timing of bank holidays were more significant. Nat Wakely, director of selling operations at John Lewis, said the equivalent period for last year included Good Friday, a day when city centre workers tend to avoid high street outlets in favour of a day out at an out-of-town mall. Motorists are cutting back on journeys in order to save money, according to an AA poll in January. Edmund King, the AA president, said short car journeys are less fuel-efficient because they involve stop-start driving and trips to shopping centres could fall victim to a domestic cost squeeze. “If the journey to the out-of-town shopping centre is on average five or six miles that is a particularly inefficient journey in terms of fuel use. So if people can avoid that, they will.” Although John Lewis’s more central stores tended to perform better than its out-of-town sites, the latest data from the group showed times remain tough on the high street. Reporting at the end of a week that saw Halfords and Carpetright becoming the latest retailers to issue profits warnings, John Lewis revealed that it too was suffering from British consumers’ dwindling confidence and purchasing power. The John Lewis department stores recorded year-on-year sales growth of just 1.1%, including the benefit of the January VAT rise, well down on the near-10% increase seen in the previous six months. Retail industry Petrol prices John Lewis Motoring Consumer spending Oil Tom Bawden Dan Milmo guardian.co.uk
Continue reading …Facebook is ready to share one of its secrets: The company will unveil the details of its server design—something most big tech firms keep under wraps—in an effort to improve server technology and efficiency throughout the industry. The firm will publish the technical details of the building design,…
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Anna Hazare’s hunger strike has inspired Indians as frustration grows at the subversion of the rule of law and moral values The Jantar Mantar in New Delhi is a hot favourite of the average tourist in the summer. But since 5 April 2011, the astronomical observation site has become a focus of an anti-corruption campaign that has never been seen before, thanks to Anna Hazare . After decades of utter frustration, this one man, a veteran Gandhian, has emerged as the champion for tackling the menace of corruption. His crusade is a measure of the pent-up anger, especially among the young, springing from the manner in which politicians of all hues are taking the country for a ride through misuse of office and naked corruption. With the gap between the haves and have-nots widening, there is a sense of frustration among the diminishing tribe of honest Indians which is ready to explode. Over the past six decades, the four pillars of democracy, the legislature, judiciary, executive and the press, have all developed serious problems in India. The rule of law stands subverted and moral values seriously eroded. The civil rights of women and children suffer blatant violations. Daily newspapers are replete with news of rape, dowry-deaths, trafficking, abduction and murder. The weak, the elderly and those living alone are robbed and killed every day. The police authorities prefer to look the other way. Attempts to lodge complaints with them are simply stonewalled unless some activist take the cudgels of justice in their hands. Members of the hallowed corridors of the law courts have succumbed to the temptations of underhand deals. Shanti Bhushan , a leading lawyer, claimed that half of the 16 supreme court chief justices before whom he had appeared were corrupt. Newspaper owners and managers are known to strike deals with corporate bosses to give them favourable coverage through “paid news”. Schools openly arm-twist parents to part with hefty sums of money before admitting children to their portals and euphemistically call it a “donation”. Indeed no receipt is given for this transaction. While the government feigns helplessness, the practice gains acceptance. Most of the emerging middle-class’s entrepreneurs are blinded by their desire to get rich quickly, by hook or by crook. Their conscience does not prick them when they resort to falsification, telling lies, fraudulent practices, cheating and adulteration. Dodging taxes in the name of tax planning is smart business. Even godly men and religious preachers are embroiled in corruption and scandals of various types. The country has an abysmal record of penalising offenders who have someone to protect. Hazare, a social worker, has been demanding that the government enact a comprehensive anti-corruption law and draft a citizen’s ombudsman bill, or Lokpal bill. He looks to have won his battle , so has announced that he will break his fast on Saturday. India must fully embrace his plan to root out the cancer of corruption. Otherwise, this climate of economic hardship, with high food prices and rising unemployment, could become a catalyst for political turmoil of the sort seen elsewhere in the world, with even more serious consequences not only for India but also for the rest of the world. The Facebook youth of India might just wake up. India Kailash Chand guardian.co.uk
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One person is dead and another in critical condition after shooting on board HMS Astute in Southampton One person has been killed and another is in a critical condition after being shot on board a British nuclear submarine. A navy serviceman has been arrested after the incident on HMS Astute, which is docked in Southampton. Hampshire police and the Ministry of Defence have said the incident was not terrorist related and there had been no risk to the public. All three involved were Royal Navy personnel. Several police vehicles were sent to the Eastern Docks and officers could be seen on the gangway of the £1bn submarine. A police spokesman said: “Hampshire police were called by their Ministry of Defence colleagues at 12.12pm today and are currently liaising with them to establish the exact circumstances of the incident.” An MoD spokesman said: “Two Royal Navy personnel have been involved in a firearms incident at Southampton docks where HMS Astute is alongside. Sadly one has now died as a result of his injuries. “The Royal Navy is now attempting to inform their families as a matter of urgency. A third Royal Navy serviceman has been arrested by Hampshire constabulary and is now in custody. “This incident was not terrorist-related and there is no threat to the wider public. We are co-operating fully with the police investigation and a Royal Navy service investigation will begin in due course.” Police were refusing to confirm reports that the shooting took place in a control room, or that the two victims were officers and the person arrested an able seaman. A spokesman said details would not be given until next of kin had been informed. A navy source said it was believed a pistol was used. Detectives are meeting naval officials on board the vessel. Astute was not open to the public while in Southampton but civic leaders, sea cadets, scouts and school and college parties were being invited on board. Visitors on board at the time of the shooting included the leader of Southampton city council, Royston Smith; the mayor, Carol Cunio; and the chief executive, Alistair Meill. Southampton Itchen MP and former cabinet member John Denham expressed concern about security issues relating to the incident. “It is a matter of grave concern that an incident like this could occur on a visiting Royal Navy vessel. In due course I will be asking ministers to ensure this incident is fully explained with complete openness about any potential risk to the public. “I wish to express my deepest sypathy to the victims of this incident and their families.” HMS Astute is described by the Royal Navy as the first of a new class of vessel designed to be the largest and most powerful nuclear attack submarine it has ever sailed. This is Astute’s first trip south. It was built in Barrow-in-Furness, Cumbria, and is based at Faslane, in Scotland. The five-day visit to Southampton was billed as the first chance for people outside north-west England and Scotland to see it. Astute’s commanding officer, Commander Iain Breckenridge, said before arriving in Southampton: “My ship’s company and I are very much looking forward to the visit and meeting the people of the city. And I’m sure scouts, school pupils and other visitors will be impressed with the capabilities of this formidable vessel.” Since commissioning last August the Astute has had what the navy calls an interesting time, including running aground off the Isle of Skye . It is in the middle of a “demanding” trials programme. The submarine’s Spearfish torpedoes and Tomahawk cruise missiles are capable of delivering pinpoint strikes from 1,240 miles with conventional weapons. Its nuclear reactor means it does not need refuelling and it makes its own air and water, enabling it to circumnavigate the globe without surfacing. It was the first in a fleet of six that will replace the Royal Navy’s Trafalgar class submarines. The Ministry of Defence said anyone worried about loved ones on HMS Astute could call 08457 800 900. Crime Military Steven Morris guardian.co.uk
Continue reading …The FBI used a Fox anchor to try to sniff out the names of other journalists’ confidential sources in the early ’90s, according to files unearthed by the Smoking Gun , whose editors believe the anchor in question is John Roland, former anchor at Fox’s flagship New York station WNYW. The…
Continue reading …Yes, Virgnia, there is such a thing as retail therapy. We all knew about the mental health benefits of a good buy, but now researchers have discovered that shopping might extend life. Men and women who shopped daily lived longer than those who shopped less frequently, found a study of…
Continue reading …Ivory Coast president Laurent Gbagbo appears to be a man who just doesn’t know when he’s beaten. The leader, who refused to relinquish power after losing an election to opponent Alassane Ouattara, is holed up in a tunnel built to connect his Abidjan residence to that of the French ambassador,…
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Comedian hails pundit’s ‘transition off’ from Fox News with extended skit, mocking him for comparing himself to Paul Revere Jon Stewart had his own take on the reason for Glenn Beck’s “transition off” from Fox News in his Comedy Central Daily Show on Thursday: “Glenn Beck still had the third highest show in cable news … Maybe Fox News thought it would be useful to pick some random talk radio host rehashing all same tired old John Birch Society conspiracy theories to seed ultra-conservative viewpoints into the news cycle, while making the rest of the network seem centrist by comparison. But, he then began to believe his own messianic delusions and became a giant pain in the ass. So they dropped his ass.” For his farewell to Beck, Stewart once again adopted his trademark glasses and chalk boards for an extended spoof, including a clip of the Fox News presenter explaining his departure from the network by way of a comparison with Paul Revere. Stewart wasn’t going to let that pass without comment: “Glenn could’ve likened himself to any character from the American revolution … But he decided to go with the first and loudest character. And the only real difference between Glenn and Paul Revere is that when Paul Revere told you the British were coming, they were in fact coming.” Stewart himself must be at least a teeny bit sad that Beck is leaving Fox News, given how much material he has provided over the past couple of years. Perhaps most memorably, in March 2010 the first half of the Daily Show was given over to a 15-minute spoof by Stewart of Beck’s presenting style and conspiracy theories. . Glenn Beck Jon Stewart Fox News Fox TV news Television industry US television industry US television Television United States Jason Deans guardian.co.uk
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Collective whitewashed 65-metre penis on drawbridge in St Petersburg Voina, the scatological Russian art collective supported by the British street artist Banksy , has won a state-backed art prize for painting a 65-metre penis on a drawbridge. Members of Voina (the war) – two of whom are awaiting trial on hooliganism charges – whitewashed the decoration on a bridge in St Petersburg last June. When the bridge was raised the erect phallus faced the local headquarters of the FSB, the successor to the KGB. The work, entitled A Dick Held Prisoner at the FSB, was awarded the 400,000 rouble (£8,700) 2010 Innovation prize by the National Centre for Contemporary Arts in Moscow on Thursday evening. The graffito was scrubbed off the bridge by authorities after a few hours but pictures of it became an internet sensation. The prize, which is supported by the ministry of culture, was awarded after weeks of wrangling, during which Voina’s entry was excluded, then reinstated. Andrei Yerofeyev, the curator who announced the winner, described the phallus as an outstanding work which stemmed from a Russian tradition of “socially engaging art”. No representatives of Voina were at the glitzy ceremony at an art gallery run by Roman Abramovich’s partner, Dasha Zhukova. However, the collective issued a statement saying it would donate the prize money to political prisoners. Two members of the group, Oleg Vorotnikov and Leonid Nikolayev, are awaiting trial in relation to a guerrilla performance in September called Palace Revolution, when the group turned over several police cars in St Petersburg. The pair were arrested in November but released on bail in February. They face up to seven years in jail if convicted. Banksy donated £80,000 from a print sale to Voina after hearing about the prosecution. Vorotnikov suggested that the prize jury had defeated bureaucrats who tried to deny the group the prize. “They are professionals after all, and some of them are brave people,” he told the Sol website. Other members of Voina said it should have won the prize for a different “action” – when a woman in the group was filmed stealing a chicken from a grocery store by inserting it into her vagina. “Now that was something,” said Vorotnikov. Russia Banksy Awards and prizes Tom Parfitt guardian.co.uk
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