Bernanke warning on US debt limit

Ben Bernanke (14 June 2011)Ben Bernanke suggested stabilising the deficit as a proportion of the total economy
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The chairman of the US Federal Reserve, Ben Bernanke, has warned that the country’s creditworthiness is at risk if its borrowing limit is not raised.

He said the US could lose its coveted AAA credit rating if Congress did not vote in favour of lifting the $14.3 trillion (£8.7 trillion) debt ceiling.

If there is no deal by August, the US may start defaulting on obligations.

Vice-President Joe Biden and congressional leaders have resumed efforts to find a bipartisan solution.

They are trying to reach an agreement that would tie spending cuts with an increase in the debt limit. They are expected to discuss annual spending levels, budget process reforms, taxes and healthcare benefits.

“We’re making real progress, we’re down to the tough stuff now and everybody’s still in the room,” Mr Biden said after Tuesday’s meeting.

President Barack Obama and the Speaker of the House of Representatives, John Boehner, want an agreement by 4 July.

At a conference on Tuesday organised by a think tank, the Committee for a Responsible Federal Budget, Mr Bernanke said any delay in the US government making payments could cause chaos on global financial markets.

US federal government debtUS government currently runs a $1.5tr budget deficit, requiring it to issue debt in the form of treasury bills, bonds and other securitiesPublic debt was $14.3tr on 31 May, up from $10.6tr when Mr Obama took office in January 2009.Most is held by the public, with the rest held in US government accountsCongress has voted to raise the US debt limit 10 times since 2011

Sources: US Treasury, Congressional Research Service, Congressional Budget Office

It could also damage the dollar’s status as a reserve currency, he warned.

Mr Bernanke said he understood the desire of many politicians to use the deadline to force some necessary and difficult policy adjustments, but said the debt limit was “the wrong tool for that important job”.

“Failing to raise the debt limit would require the federal government to delay or renege on payments for obligations already entered into.”

“Even a short suspension of payments on principal or interest on the treasury’s debt obligations would cause severe disruptions in financial markets and the payments system.”

In addition, Mr Bernanke said US government debt risked being downgraded, creating fundamental doubts about the nation’s creditworthiness.

Long-term damage to the “special role” of the dollar and of treasury securities in global markets was also possible, he said.

Instead of allowing a default, Democrats and Republicans needed to develop a credible long-range plan to rein in the nation’s budget deficit, Mr Bernanke added.

An increase of $2.5 trillion would allow the government to operate until early 2013.

He suggested stabilising the deficit as a proportion of the total economy, and lowering the figure over time. Deficit-reduction goals should be set and enforced with a mechanism triggering automatic cuts.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Child victims ‘failed by courts’

A girlChildren found trials a traumatic experience, Barnardo’s said
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A children’s charity says child victims of sexual exploitation have been “failed by the system” because convictions are so hard to achieve.

Official figures show there were 89 child sexual exploitation convictions in England and Wales in 2009.

But Barnardo’s says it is aware of 2,756 child victims of offences such as grooming and trafficking.

The government said a plan for police and other agencies on how to better tackle the problem is to be published.

According to Barnardo’s, sexual exploitation cases were often dropped because of insufficient evidence, and there was an over-reliance on the victims as witnesses.

Barnardo’s chief executive Anne Marie Carrie said the children were being let down “terribly”.

“They are being failed twice; once by the failure to prevent them becoming victims in the first place and again by the failure to punish their abusers and secure justice.

“We need to see drastic changes to make sure the abusers who control such vulnerable children for sex and personal gain are brought to book.”

“When children do have the courage to take the stand, we need to make sure that they have the support that they deserve.”

Anne Marie Carrie Barnardo’s chief executive

The term child sexual exploitation covers a range of activity.

It also includes arranging a child sexual offence, meeting a child following grooming, paying for the sexual services of a child and inciting child prostitution or pornography.

Mrs Carrie said trials could be “traumatic and painful experiences for children”.

“And when children do have the courage to take the stand, we need to make sure that they have the support that they deserve the whole way through the process.”

The charity intends to launch a study to assess the role of the local safeguarding children’s boards (LSCB) in securing prosecutions against perpetrators of child sexual exploitation.

LSCBs are statutory bodies responsible for protecting children and young people from significant harm and for promoting their welfare.

Statistics show that for prosecutions brought under other sections of the Sexual Offences Act in 2009, 41% resulted in convictions for rape of a child under 13, and 37% for sexual assault of a child under 13, and a total of 501 people were found guilty.

The Ministry of Justice said overall more than 1,500 people were convicted of sexual offences against children in 2009.

A spokesperson said: “We are determined to support children within the justice system. They are only required to give evidence where absolutely necessary, and measures taken to protect them include children giving evidence by video-link, or being supported by an intermediary in court.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Unlocking potential

EquipmentMinisters believe their reforms will lead to better care

Primary care trusts, clinical senates and commissioning groups. The list goes on.

And yet, for most people, these terms will mean very little.

The government’s NHS reform programme in England has been an epic saga. But it has almost entirely focused on structural changes and policy U-turns rather than the patient experience.

In truth, that is because the immediate effect on patients is hardly noticeable.

But in the long term the reforms could – if the government is right – herald a whole new era of health care.

The government has pushed ahead with the changes in the belief that they will help meet the twin challenge of rising demands and tightening budgets.

The simple response to such a scenario – and the one that ministers are keen to avoid – is rising waiting lists and ever-greater rationing of services.

But the alternative vision is one where through better decision-making the potential of the NHS to provide more effective and revolutionary care is unlocked.

So how could the patient experience change in the next five or 10 years if that does happen?

The rise of the super hospital

Brain imageStroke care has been redesigned in London

Stroke services in London give a clue to what could happen in a whole host of complex areas of care.

Nearly two years ago services were redesigned so patients with symptoms were no longer taken to their nearest hospital.

Instead, ambulances ferry them to one of eight specialist centres that have expert staff and facilities on hand 24 hours a day.

The overhaul is estimated to be saving 400 lives a year and London is now rated as having the best stroke service in the country.

Similar moves are under consideration for other parts of the country and for other specialisms, from heart surgery to cancer care.

It raises the prospect of a network of super-hospitals being created.

But that in turn raises question marks about the future of district general hospitals that have been the bedrock of the health service since its inception.

Bringing the NHS into the patient’s home

One in three people has a long-term condition, such as asthma or diabetes.

Spending on their diseases takes up about 70% of the NHS budget, mainly because they end up in hospital too often.

But increasingly these groups of patients are being encouraged to “self-care” in an attempt to manage and control their conditions.

For something like diabetes that means monitoring blood-glucose levels – a relatively simple and inexpensive measure.

Advances in telecare are also offering promise.

In the US it is not unusual for patients to interact with their doctor over the internet or via mobile-phone technology.

From the hospital to the high street clinic and GP surgery

Cataract surgeryCataract surgery has changed completely over the years

When the NHS was created in 1948, patients undergoing cataract eye surgery spent a week in hospital, immobilised with sandbags to support their head.

Now the operation is done in 20 minutes, often in clinics rather than full-blown hospitals, with the patient released on the same day.

Similar revolutions are going on in other areas, allowing care to be shifted away from hospital settings into community clinics.

GPs are also getting in on the act, performing everything from minor skin surgery to vasectomies.

The trend has also spawned the creation of a series of enterprises set up by former NHS staff that are increasingly occupying the middle ground between the big private health firms and NHS providers.

In Eastbourne a nurse and occupational therapist have been running a wound-healing clinic for the past three years.

They get referrals from a host of local NHS trusts.

Many of the patients they see have struggled with their wounds for years, but eight in 10 patients are healed within six weeks.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Pupils ‘mis-sold soft A-levels"

studentsPupils from independent schools and grammars were twice as likely to take three “facilitating” A-levels
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Pupils at comprehensives in England are losing out on elite university places after being “mis-sold” lesser A-level subjects like film studies, an MP says.

Elizabeth Truss says they are being encouraged to study subjects that are not acceptable to top universities but which boost school results.

Ms Truss says pupils’ chances of going to top universities were “cut off” before they had filled in applications.

Qualifications watchdog Ofqual insists all its A-levels are rigorous.

The Conservative MP for South West Norfolk obtained the data from the Department for Education through a parliamentary question.

Her research looked at the proportion of pupils in comprehensive, grammar and private schools taking subjects that appear on the Russell Group’s list of “facilitating” A-levels.

The Russell Group represents the UK’s most prestigious universities, including Oxford and Cambridge, and the list gives students advice on the best subjects to take to get onto degree courses at these institutions.

Elizabeth Truss, MPMs Truss says many students are being sold short by taking “softer” A-level courses

Ms Truss’s findings show that 15% of comprehensive school pupils and 11% of sixth-form college pupils were entered for at least three “facilitating” A-levels in 2010, compared with 32% at grammar schools and 31% at independent schools.

Almost twice as many private and grammar school pupils (38% and 37% respectively) took maths A-level compared with their comprehensive school and sixth-form college peers (both 21%).

Just 7% of comprehensive school pupils and 6% of sixth-form college pupils took a modern foreign-language A-level compared with 13% of those at grammar school and 19% at private school.

And 9% of comprehensive pupils and 7% of sixth-form college pupils took physics A-level compared with 17% each at private and grammar schools.

Ms Truss said: “Students are being mis-sold low-quality subjects that are not accepted at top universities to boost school and local authorities’ results.

“It is time Ofqual put an end to the myth that mathematics and media studies are ‘equivalent’.”

Ms Truss is calling for the introduction of an A-level Baccalaureate – similar to the English Bac for GCSEs, which grades schools as to what percentage of pupils get good grades in maths, English, two sciences, a language and either geography and history.

The A-level Bac should include ‘rigorous’ subjects that would include at least AS-levels in maths and a language or humanities subject, Ms Truss believes.

A spokesman for Ofqual said: “Ofqual has previously called on all those who use qualifications to be more transparent about what is needed to access employment and further study opportunities.

“We therefore welcomed the Russell Group’s publication of its guidance regarding post-16 subject choices earlier this year.

“Ofqual makes sure that A-levels in all subjects are challenging and rigorous qualifications that assess the relevant knowledge required for that specific subject.”

In a speech to the Headmasters’ and Headmistresses’ Conference last week, Schools Minister Nick Gibb also raised concerns about the “yawning attainment gap” between different groups of young people.

“As a nation, we can’t carry on relying on the 7% of young people the independent sector educates, to provide such a high proportion of future generations of scientists, engineers, medics or linguists.

“The key to both social mobility and a mobile economy is to realise the potential, ability and talent of young people from all backgrounds.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Retail sales face ‘biggest drop’

Shoppers in rainThe trend is for lower spending but the bad weather in May contributed to the poor retail sales
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Scottish retail sales have suffered their worst fall since records began more than 10 years ago.

The figures from the Scottish Retail Consortium showed that total sales fell by 1.1% in May.

The like-for-like figure, which strips out any distortions created by new store openings, dropped by 3.2%.

The consortium said the strong sales in April had proved to be a blip and consumer confidence in Scotland was weaker than the UK as a whole.

In April total sales grew by 5.5% helped by the good weather and various holidays.

The cold wet May was accompanied by peoples’ uncertainties over jobs and their finances, according to the consortium.

It started the survey in 1999 and it said the total sales figures in May were the worst it had ever reported. There were drops in sales right across the board.

Fiona Moriarty, director of the Scottish Retail Consortium, said: “Non-food sales in particular are struggling and shoppers don’t have the confidence to spend on big-ticket items.

“Even heavy discounting has failed to help spending on homewares, including furniture and floor coverings, as consumers conserve their cash for more immediate essentials.”

David McCorquodale, head of retail in Scotland for KPMG, which sponsors the survey, said many shopkeepers were finding the environment difficult.

He added: “Many retailers have responded with promotions but as they themselves battle with cost inflation and upward rent reviews, the squeeze on margins and lower volumes is negatively affecting their own cashflows.”

The Scottish figures are much weaker than those in the UK as whole, where total sales fell 0.3% and like-for-like sales were down by 2.1%.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

TV couch potatoes ‘diabetes risk’

man watching TVTelly time may distract from more ‘healthy’ activities, say the researchers
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Couch potatoes beware, say researchers who link prolonged TV watching with an increased risk of diabetes and heart disease.

Every additional two hours spent in front of the box each day raises the diabetes risk by a fifth and heart disease risk by 15%, a study found.

Switching it off and doing something more strenuous instead could stop two people in every thousand developing these conditions, the authors say.

The work appears in the journal JAMA.

“The message is simple. Cutting back on TV watching can significantly reduce risk of type-2 diabetes, heart disease and premature mortality,” said lead researcher Professor Frank Hu, of the Harvard School of Public Health.

The researchers say it is not TV viewing per se that is the problem, but that people who spend hours watching programmes are less likely to lead an active lifestyle as a result and, in turn, are more likely to be overweight or obese.

“I’m sure we’ve all unintentionally lost evenings slumped on the sofa in front of the TV snacking on crisps and biscuits and drinking sugary drinks or alcohol. But it’s important that this doesn’t become a regular activity”

Maureen Talbot of the British Heart Foundation

They say other sedentary activities, like sitting in front of a computer playing games or surfing the internet, might have a similar effect, and this should be studied.

The investigators examined the findings of eight large studies that included over 175,000 people and looked at the health risks associated with TV viewing.

The results showed that more than two hours of TV viewing per day increased risk of type-2 diabetes and cardiovascular disease, and more than three hours of daily viewing increased risk of premature death.

The researchers estimate that for every additional two hours of TV watched a day there is an increased risk of an extra 38 people in every 100,000 in the US dying from heart and circulatory disease and 176 people in every 100,000 developing diabetes.

Dr Iain Frame, of Diabetes UK, said the findings should be a wake-up call about the risk of leading a sedentary lifestyle. He said evidence suggests physical activity can reduce the risk of type-2 diabetes by over 60%.

Maureen Talbot, of the British Heart Foundation, said: “I’m sure we’ve all unintentionally lost evenings slumped on the sofa in front of the TV snacking on crisps and biscuits and drinking sugary drinks or alcohol. But it’s important that this doesn’t become a regular activity.

“We should try to be selective in how much time we spend watching the TV, and try to be more physically active instead.

“We need 30 minutes of physical activity at least five days a week to keep our hearts healthy, so why not take a walk after work, join a sports team or even just get out for a bit of gardening in the evenings. It’s bound to be a lot more rewarding than staring at the box.”

According to the researchers, people in European countries spend around three-to-four hours a day on average watching TV, while people in the US do so for five hours a day.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Drop in sex diseases in England

condomsExperts say use a condom when having sex with a new partner
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For the first time in over a decade there has been a drop in the number of new sexually transmitted infections in England, figures show.

The Health Protection Agency says although the reduction is small – only 1% down from the 424,782 cases diagnosed in 2009 – it is significant and a step in the right direction.

It says increased screening for diseases like chlamydia has helped.

For the first time rates of this disease show no rise and remain stable.

There were 189,612 newly diagnosed cases of chlamydia last year.

At the same time, 2.2 million chlamydia tests were carried out in England among young people aged 15 to 24, an increase of 196,500 from the previous year.

Diagnoses of genital warts went down by 3% to 75,615 new diagnoses in 2010 and syphilis was down 8% to 2,624.

But other sex diseases continued to rise. Gonorrhoea went up by 3% from 15,978 diagnoses in 2009 to 16,531 in 2010. And genital herpes increased by 8% from 27,564 to 29,703.

STI trendsChlamydia stabilised at 189,612 in 2010Genital warts down 3% to 75,615 in 2010Syphilis down 8% to 2,624 in 2010Gonorrhoea up 3% to 16,531 in 2010Genital herpes up 8% to 29,703 in 2010

Young people under the age of 25 remain the group experiencing the highest rates of STIs overall.

Dr Gwenda Hughes, head of the HPA’s STI section, says the encouraging decreases “do not mean we can rest on our laurels”.

“It is particularly encouraging to see a decline in some STIs among young people. However, these latest figures show that the impact of STI diagnoses is still unacceptably high in this group.

“Studies suggest that those who become infected may be more likely to have unsafe sex or lack the skills and confidence to negotiate safer sex.

“Prevention efforts, such as greater STI screening coverage and easier access to sexual health services, should be sustained and continue to focus on groups at highest risk.”

To reduce the risk of STIs, experts advise using a condom when having sex with a new partner and continuing to do so until both parties have been screened.

And sexually active under-25-year-olds should be tested for chlamydia every year, or sooner if they change their partner.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Sleep position ‘still-birth link’

Pregnant woman sleepingEven among the women surveyed who lay on their right, the risk remained extremely small
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Experts want urgent research to see if the position a woman chooses to sleep in during late pregnancy affects still-birth risk, as a study suggests a link.

The University of Aukland compared 155 women who had late still-births with 310 who had healthy pregnancies.

Sleeping on the right side or back doubled, but only to almost four in 1,000, the risk of left-sided sleepers.

Left-side lying aids blood flow to the baby, as the mother’s major blood vessels are unimpeded by a heavy womb.

The New Zealand study, published in the British Medical Journal, called for larger studies to test the findings.

Ms Daghni Rajasingam of the Royal College of Obstetricians and Gynaecologists said: “There are many factors which are linked to still-birth including obesity, increasing maternal age, ethnicity, congenital anomalies and placental conditions. A significant number are unexplained.

“We would like to see further research into sleep in pregnancy encouraged and funded as a matter of urgency”

Janet Scott of the stillbirth charity Sands

“This small-scale study looks at another possible factor. However, more research is needed into sleep patterns before any firm conclusions over sleeping positions can be made.

“In the meantime, women should speak to their midwives if they are concerned.”

The UK has one of the highest still-birth rates in the developed world. Every year here 4,000 babies are still-born.

A third of still-births have no clear cause.

Janet Scott, of the still-birth and neonatal-death charity Sands, said: “We would like to see further research into sleep in pregnancy encouraged and funded as a matter of urgency.

“The study will require further validation before any widespread public health campaign could be justified.

“Mums want to know what they can do to reduce the chance of this happening to their baby.

“A simple message which mums could follow, which would reduce their risk of still-birth, would be very welcome.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Southern Cross in crisis meeting

Southern Cross signThe firm’s landlords say they have made “significant financial concessions” to avoid closing any homes
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Southern Cross is to hold a crisis meeting with landlords, lenders and the Department of Health later.

The care home provider, which is unable to meet rent payments on its homes, hopes to reach an agreement on its financial future with its creditors.

Of central importance is how to ensure continuity of care for the 31,000 people at the firm’s 751 homes.

Contracts to operate between 250 and 400 of those care homes are expected to be lost by Southern Cross.

“The current expectation is that Southern Cross will survive, but massively slimmed down and trading under a different name”

Read Robert Peston’s blog

But the biggest landlord, NHP, which owns 249 of the homes, is expected to stick with Southern Cross.

The government has been putting intense pressure on landlords not to abandon Southern Cross altogether, according to BBC business editor Robert Peston.

The landlords met on Monday, and are expected to table their own proposal for the firm’s future.

It comes after the troubled Darlington-based firm said last month it would stop paying about a third of its rental bill.

“The landlords have agreed in principle that they will make significant financial concessions in order to achieve a sustainable solution,” said Daniel Smith, who chaired their meeting on Monday.

“Our overriding concern at this time remains minimising disruption and concern for residents and their families.”

The 80 landlords will now put forwards their joint proposal, which was designed to avoid any closures of care homes, at the creditors’ meeting on Wednesday.

In return, they are looking to the government and lenders to agree to write off some of the money Southern Cross owes them.

Under their joint proposal, individual landlords would reportedly be given various options, including:

taking back homes and running them themselvestaking back homes and bringing in a new operatorsticking with Southern Cross, who would bring in new management.

Southern Cross is the UK’s largest care home operator, employing 44,000 staff, of which the company has already said it will cut 3,000.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Scam-tackling system ‘fragmented’

Man on telephoneWorried consumers will soon have calls taken by the Citizens Advice charity

The system to protect consumers from scams that cost them billions of pounds is “fragmented and significantly underequipped”, a report has concluded.

Trading standards departments, which are facing cuts in funding, are using two incompatible databases to share intelligence, the National Audit Office (NAO) said.

Meanwhile, some local departments are not taking on UK-wide cases.

The cost to consumers of these cases is at least £4.8bn a year, the NAO said.

“Consumers in this country believe that they are well-protected but the reality does not support this view,” said Amyas Morse, head of the NAO.

“The system for enforcing consumer law is fragmented and significantly underequipped to tackle a whole range of serious consumer scams.”

Bogus e-mails aimed at conning people out of their money cost UK consumers an estimated £3.5bn a year on a national level. Counterfeit goods add another £1.3bn onto that bill.

Consumers also lost money as a result of shoddy or unnecessary work sold by rogue traders on the doorstep. But the NAO said there were no reliable figures showing the total amount lost.

“The consumer protection landscape is in need of reform”

Edward Davey Consumer ministerWho are consumers going to call?

The NAO said that the lack of proper evaluation of these figures was leading to an inefficient allocation of resources to tackle these rip-offs nationally.

While some trading standards departments, operated by local authorities, did take on national “cross-border” cases, many did not. Smaller departments, some of which had just two members of staff, would be less likely to take them on.

Three of 11 regional teams that were supposed to tackle issues across a number of council areas have been closed, the report said. The remainder only have short-term arrangements.

In addition, the service is facing budget cuts. Annual funding from the Department for Business is expected to fall from £213m now to between £140m and £170m by 2014.

Rogue traders tend to operate in one area, then move on to others, partly to escape the authorities.

As a result, the Office of Fair Trading set up an intelligence-sharing database in March 2010. The NAO said only half of the 197 trading standards services in England had committed to using it.

“We should not lose sight of the fact that local authority trading standards services take on large scale cases for the benefit of consumers and businesses day-in day-out and continue to punch above their weight”

Steve Greenfield Association of Chief Trading Standards Officers

Another 30 services were using an alternative, incompatible database which had been set up by one trading standards region.

The government-backed Consumer Direct service, which allows consumers to report incidents and receive advice, is soon to be taken over by Citizens Advice.

The NAO warned that this must still be a useful source of intelligence for trading standards officers when the service is taken over.

There remained a “lack of clarity” over who should take on prioritised cases.

Consumer minister Edward Davey said the report highlighted why changes were needed.

“The consumer protection landscape is in need of reform,” he said.

“This is why we announced our intention to change the complex and overlapping system. Shortly we will publish our detailed proposals to improve the landscape for the benefit of consumers and businesses.

“The report rightly highlights that the ability of the current system to tackle consumer detriment across local authority boundaries is patchy at best. This is one of the key issues that the Department for Business consultation addresses.”

The overall cost of unfair trading is estimated to be more than £6bn a year.

“There is no doubt that the system as a whole is under-resourced. When a £6.2bn problem is addressed with a £213m – and falling – solution we know there are going to be shortfalls,” said Andy Foster, of the Trading Standards Institute.

“What is important is that we use that resource to best effect to protect those citizens that are the most vulnerable to rogues, loan sharks and criminals who take advantage of them and that we empower the rest of the community to become consumer champions so that the system is still effective, but is not a drain on public resources.”

Steve Greenfield, who chairs the Association of Chief Trading Standards Officers, accepted there were some issues with how cases were referred to national authorities.

“We should not lose sight of the fact that local authority trading standards services take on large scale cases for the benefit of consumers and businesses day-in day-out and continue to punch above their weight,” he added.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Obama offers Puerto Rico support

President Barack ObamaMr Obama’s trip to the Puerto Rican capital of San Juan is only expected to last about five hours
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US President Barack Obama is to make a rare visit to Puerto Rico, marking the first official trip to the island by a sitting US president since 1961.

The visit is being seen by some as an indirect bid for the votes of Puerto Ricans in the swing-state of Florida during next year’s presidential poll.

The 3.8 million residents of the US Caribbean territory are US citizens but cannot vote for the president.

During his stay, Mr Obama will attend a Democratic National Committee event.

The president visited the island in 2008 during his campaign for the Democratic nomination, promising to return if elected president.

The BBC’s Julian Miglierini in San Juan says many people there believe the visit is aimed at courting mainland America’s Puerto Rican electorate – and Hispanic voters in general – as they could hold the key to Mr Obama’s re-election in 2012.

The president has called for broad reform of the US immigration system, an issue affecting many Hispanics with ties to the 11 million US illegal immigrants.

Mr Obama is scheduled to meet Puerto Rico’s governor on Tuesday to discuss the political status of the territory.

Analysts have said Mr Obama’s trip to the Puerto Rican capital of San Juan, which is only expected to last about five hours, will also focus on the impact the economic crisis has had on the territory.

Meanwhile, roughly 20 pro-independence demonstrators held an all-night vigil in San Juan ahead of the president’s visit, calling for the release of three Puerto Rican nationalists imprisoned in the US.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.