Scottish jobless rate falls again

Job centreThe number of people claiming Jobseekers Allowance has risen
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Unemployment in Scotland fell for a second time with a 5,000 drop between September to November to 225,000, the Office for National Statistics said.

However, the total is 23,000 higher than for the same period in 2009.

Scotland’s overall unemployment rate – which includes those who are jobless but not eligible for benefits – is 8.4%, higher than the UK rate of 7.9%.

Figures also showed a rise in the number of people out of work and claiming Jobseekers Allowance (JSA).

This increased by 2,200 to 138,300 in December – 2,400 higher than it was 12 months before.

In the UK as a whole, unemployment increased by 49,000 in the three months to November to 2.5 million.

In Scotland, employment increased by 18,000 to 2,470,000 over the period of September to November 2009. This was 38,000 lower than in the same period in 2009.

Secretary of State for Scotland Michael Moore said: “Any news of falling unemployment in Scotland is to be welcomed but these figures also show the scale of the challenge this government faces.”

He added: “The increase in the number of people claiming Jobseekers Allowance is an unwelcome reminder of the effects of the financial crisis we inherited.

“The government is doing everything it can to create the conditions that enable all businesses to be thrive and create more jobs.

“Tackling the deficit is unavoidable and is the steps we are taking are already helping keep long-term interest rates lower and encourage businesses to invest and grow.”

Scottish Finance Secretary John Swinney said: “For two consecutive monthly labour market statistics releases, the labour market figures show falling unemployment and rising employment in Scotland, compared to rising unemployment and falling employment across the UK.”

However Mr Swinney added: “While today’s figures are welcome, Scotland’s recovery remains at a crucial stage.”

Grahame Smith, Scottish Trades Union Congress (STUC) general secretary said: “Over a year since Scotland technically left recession, the labour market shows little sign of durable improvement.

“With public spending cuts only beginning to bite in terms of employment, the Scottish labour market faces a grim 2011.”

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Italian ‘turmoil’ over Berlusconi

Silvio Berlusconi poses beside a bust at Rome's Villa Madama, 18 January Mr Berlusconi said the idea of him resigning was “mad”
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Italy’s president has said the country is in “turmoil” over the under-age prostitution accusations against Prime Minister Silvio Berlusconi.

Giorgio Napolitano said he hoped Mr Berlusconi would respond to Milan prosecutors as soon as possible.

The prosecutors have summoned him for questioning at the end of this week.

But lawyers for Mr Berlusconi, who denies paying for sex and has laughed off calls to resign, say they have not decided whether he will attend.

The tycoon, who may also face prosecution in three separate corruption trials, is under increasing pressure.

“Either you’re up for everything or else you can get a taxi and leave”

Woman quoted in transcript, allegedly talking about Mr Berlusconi’s parties

A front-page article in the newspaper of Italy’s Roman Catholic bishops called the investigation into Mr Berlusconi a “devastating tornado”.

Italy’s main opposition, the Democratic Party, said if Mr Berlusconi had any dignity, he would resign.

Mr Berlusconi, whose five-year term is due to run until 2013, narrowly survived a confidence vote in December.

Mr Napolitano said he hoped the prime minister would respond to the summons from Milan prosecutors as soon as possible.

“It is hoped that the conclusions of the investigations will be responded to at the foreseen judicial offices as soon as possible,” he said in a statement.

Italian media have been carrying transcripts of leaked phone conversations between some of the women who allegedly attended parties at Mr Berlusconi’s villa near Milan.

Karima "Ruby" El Mahroug poses during a photocall at a disco in Milan, 14 November 2010Karima El Mahroug denies having sex with Mr Berlusconi

The transcripts are taken from a 385-page dossier detailing the investigation into the 74-year-old billionaire, Reuters news agency reports.

The Milan inquiry focuses on Karima El Mahroug, an 18-year-old Moroccan belly-dancer who attended Mr Berlusconi’s parties when she was 17 and, prosecutors say, was paid to have sex with him.

Having sex with a prostitute aged under 18 is an offence in Italy.

Ms Mahroung, better known to the Italian media by her stage name Ruby, has denied having sex with the prime minister.

Transcripts leaked to Italian media quoted her as saying she had asked Mr Berlusconi for hush money and had been told by the prime minister she would receive “as much money as you want” if she kept quiet.

According to a tapped conversation between two other women which was quoted by Italy’s Ansa news agency, one allegedly said to the other: “The papers say much less than the truth, even when they massacre him [Berlusconi].”

The woman added: “Either you’re up for everything or else you can get a taxi and leave.”

Dario Francheschini, parliamentary leader of the Democratic Party, told parliament on Tuesday: “If the prime minister has a crumb of dignity he should resign and go before investigators to face the infamous charges.”

Avvenire, the newspaper of the Italian Bishops’ Conference, said “the mere idea that a man who sits atop Italian institutions is implicated in stories of prostitution – worse yet, prostitution of a minor – is hurtful and upsetting”.

The Vatican has not commented on the “Rubygate” affair but Mr Berlusconi’s centre-right government is sensitive to losing Catholic support.

“If the Vatican… should ditch us, it would all be over,” a source close to the prime minister was quoted by Ansa as saying.

Nicole Minetti reads a newspaper during a meeting at the Lombardy regional headquarters in Milan, 18n January Nicole Minetti is accused of recruiting young women for the prime minister

Prosecutors have asked parliament for permission to search properties linked to Mr Berlusconi.

They say that Nicole Minetti, a Lombardy regional official who was formerly Mr Berlusconi’s dental hygienist, recruited “a significant number of young women, who prostituted themselves with Silvio Berlusconi”.

Ms Minetti, who is also under investigation, denies the accusations.

The prime minister has accused the prosecutors of waging “political battles” and “illegitimately using their powers” to try to bring him down.

But Chief Prosecutor Edmondo Bruti Liberati responded by saying the investigation had been “obligatory” because of incriminating evidence taken last year, including Ms Mahroug’s phone records.

Mr Berlusconi sought to make light of the investigation on Tuesday.

“What, are you all mad?” he replied when asked if he would bow to calls from the opposition for his resignation.

“I’m absolutely calm, I’m enjoying myself,” Mr Berlusconi added.

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Murphy seeks to reassure on water

Conor MurphyConor Murphy is appearing before the committee for the first time since the water crisis
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The Regional Development Minister Conor Murphy is due to appear before the Stormont committee responsible for scrutinising his department.

The minister is expected to face questioning over his department’s handling of the recent water crisis.

More than 40,000 homes were off mains supply after an unprecedented period of cold weather.

Mr Murphy’s appearance also follows a draft report which was critical of his department over NI Water’s governance.

The report, commissioned by the Public Accounts Committee, described the department’s arrangements for overseeing NI Water as “the worst of all possible worlds.”

The review was prompted after another report found that millions of pounds of contracts were being awarded without proper competitive tendering.

The PAC probe has criticised DRD’s overall handling of NI Water, hitting out at how its governance arrangements were designed for a commercial company despite it effectively remaining in public hands.

It says the oversight of NIW, established in 2007, was looser than it was for other non-departmental public bodies.

Controversies

It is the latest in a string of controversies to hit NI Water.

Its chief executive Laurence MacKenzie resigned in the wake of the water crisis, with many people critical of the government-owned company’s failure to come to the aid of those in need.

A two-strand review which will examine the role of NI Water and the department separately is expected to be finished at the end of February.

The committee is likely to also quiz the minister on the draft PAC report which was leaked to the media on Tuesday evening.

On procurement procedure, the review says the “inexcusable” mistakes were part of a “deeply embedded culture” and called for root and branch reform of policy.

A previous review into procurement, which led to the sacking of NIW four directors, was curtailed by Mr Priestly too quickly, the PAC found.

It added that all those who were on the independent review team had potential conflicts of interest.

NI Water contracts controversyJan 2010 – NI Water chief Laurence MacKenzie and DRD permanent secretary Paul Priestly agree to an independent review into the improper awarding of contractsFeb 2010 – The independent review says governance procedures have not been followedMarch 2010 – DRD minister Conor Murphy sacks four NIW directorsJuly 2010 – the PAC asks independent review member Peter Dixon if he is a friend of Paul PriestlyJuly 2010 – Mr Dixon complains about his treatment by the committee but later backs down after his boss at Phoenix Gas intervenesAugust 2010 – UTV uncovers documents which purport to show that Mr Priestly was given an early draft of the review team’s report and asked for changes to be made to itIt is alleged that Mr Priestly asked for criticism to be directed away from DRD on to NIW

‘Utterly disgraceful’

It criticised evidence given to it by Mr Priestly, and said it was “utterly disgraceful” that he drafted a letter of complaint to it on behalf of one of the review team.

Mr MacKenzie’s evidence to the committee was also criticised.

Both NI Water and the Department of Regional Development said they would not comment on a leaked draft report.

The chairman of the PAC, Sinn Fein MLA Paul Maskey, said that he was disappointed the draft had been leaked and he would seek to get to the bottom of how it happened.

SDLP member of Stormont’s regional development committee Conall McDevitt said that the report raised “serious questions” and that Regional Development Minister Conor Murphy was responsible for the alleged failings detailed.

He added: “The only senior figure who has been in a leadership position throughout the period covered by the report is Conor Murphy.

“The buck stops at his desk. He is the head of the Department for Regional Development which has now been found to have fallen below the standard of good government.”

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Somali denies Denmark axe attack

Danish cartoonist Kurt Westergaard (Nov 2010)Kurt Westergaard locked himself in a panic room and was unharmed in the attack
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A Somali man has denied trying to murder Danish cartoonist Kurt Westergaard, who was behind caricatures of the Prophet Muhammad.

Prosecutors say Mohamed Geele, 29, broke into Mr Westergaard’s home carrying an axe.

Mr Geele admitted breaking in with an illegal weapon when he appeared in court in Aarhus on Wednesday.

But he denied charges of attempted murder and terrorism.

Kurt Westergaard’s cartoon of a turban bomb was one of 12 published in a Danish newspaper in 2005 that prompted protests among Muslims around the world.

Mr Westergaard first went into hiding but then decided to live openly in a heavily fortified house.

On New Year’s Day in 2010, he said his front door was broken down by an attacker while he was in the house with his five-year-old grand-daughter.

He rushed into a panic room and called the police who arrived minutes later and shot and wounded a man.

The cartoons still appear to be a source of anger. Last month Danish police arrested five suspected militants for planning an alleged attack on the newspaper that originally published them, Jyllands-Posten.

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Afghan blast kills 13 civilians

BBC map

A roadside bomb has killed 13 civilians in eastern Afghanistan, government officials said.

The interior ministry said in a statement that the vehicle, a motorised rickshaw, was hit on Wednesday morning.

The dead include women and children. The attack took place in Khoshamand district in Paktika province.

It is not known who carried out the attack, but the area on Pakistan’s border is a stronghold of the Taliban and al-Qaeda militants.

The interior ministry blamed the attack on “enemies of Afghanistan’s people” – a phrase often used to describe the Taliban.

A police investigation has been launched, it said.

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100 days and counting

Kate Middleton and Prince WilliamWilliam and Kate will want to strike a balance between ceremony and modesty

Two family weddings, two significant birthdays – the Queen’s 85th in April, Prince Philip’s 90th in June – plus the usual round of royal duties and the preparations for the Queen’s Diamond Jubilee next year.

The year 2011 promises to be a busy one for the Royal Family. But there is no doubt which event will be the high-point, both for the family and for the public.

Prince William’s wedding to Catherine Middleton at Westminster Abbey on 29 April has been long in coming. The couple have known each other for eight years since they met at St Andrews University.

The announcement of their engagement on 16 November last year caught the media by surprise.

But there can be little doubt that within the Royal Family it was common knowledge from an early part of 2010 that the engagement was to be announced in the autumn, with the wedding firmly pencilled in for the spring of 2011.

It certainly was not as spontaneous and unexpected as Miss Middleton tried to make it sound in her engagement interview. Within William’s family the planned engagement had been known about for a number of months.

Looking forward now to the wedding itself there is the prospect of the biggest royal celebration for a number of years.

“Though, inevitably, the wedding will be broadcast to audiences around the world I suspect William, in particular, and Kate will insist that it remains their day without unnecessary grandeur”

There will be weeks of speculation about the bride’s dress and other aspects of the day itself, countless merchandising opportunities for souvenir makers, significant business opportunities for London’s tourism industry, and a bumper weekend for retailers across the country as people use the wedding and the extra bank holiday as a reason to celebrate with parties of their own.

However, the officials at Buckingham Palace and St James’s Palace who are charged with organising the wedding are conscious of the economic circumstances of the country.

According to them, William and Kate’s wedding will, in many ways, be more of an echo of the wedding of his grandparents than that of his father and mother.

In the post-war Britain of 1947, the marriage of the then Princess Elizabeth to the Duke of Edinburgh was indeed a moment for national celebration but, grand though the occasion was, it was organised within the generally austere atmosphere of a country which was struggling to recover from the devastating economic impact of World War II.

By contrast, the marriage of the Prince of Wales to the then Lady Diana Spencer in 1981 was a lavish affair, deliberately staged at St Paul’s Cathedral so that as many people as possible could both line the route across central London and attend the ceremony itself.

In choosing Westminster Abbey rather than St Paul’s for their wedding, William and Kate are deliberately opting for something on a rather smaller and more intimate scale.

Westminster AbbeyThe choice of Westminster Abbey will mean a more intimate event

The route between palace and abbey will be shorter, the congregation smaller and, of course, as the palace has been at pains to point out, the cost of the wedding – security and traffic management and so on apart -will be borne by the families of the bride and groom.

“It will be done properly and well, but not in an ostentatious and lavish manner,” one courtier has been quoted as saying. And that, I suspect, is the kind of wedding that William and Kate themselves want.

We have already seen a few clues as to how they plan to strike the balance. We know that Kate will travel to the Abbey by car rather than coach.

After the service, as man and wife, they will ride back to Buckingham Palace in a horse-drawn carriage with an escort from the Household Cavalry in full ceremonial dress. But once they get to the palace there will be a buffet-style reception rather than a full-scale wedding banquet.

There will, of course, be an appearance by the couple on the palace balcony for what will doubtless be the abiding image of the day as they embrace.

But the couple are not heading off immediately on honeymoon. They will remain at the palace for a “dinner and dance” hosted by William’s father for the couple’s immediate family and friends.

So William and Kate and their advisers are treading carefully in their wedding preparations. They are aware of the appetite of many millions of people, both here in Britain and abroad, to witness a ceremonial wedding on an appropriately grand scale and to share in the romantic “glow” of witnessing this young couple pledge themselves to each other.

But though, inevitably, the wedding will be broadcast to audiences around the world I suspect William, in particular, and Kate will insist that it remains their day without unnecessary grandeur.

Above all they want it to be an intimate ceremony after which they can return, as much as possible, to a life without too many unrealistic expectations that the wedding will be the curtain-raiser to a life on the public stage as the British royal family’s new golden couple.

That is precisely what they will be, of course, and they recognise that, but William has at least two more years to serve as an RAF search and rescue pilot.

And as for his wife – very probably she will wish to concentrate on their domestic life together. And who knows, perhaps she will present the Queen with another great grandchild to mark the Diamond Jubilee in 2012.

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Winter freeze hits festive sales

Christmas shoppersFreezing weather affected high street sales during the first half of December
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The December freeze had an impact on sales during the Christmas period, according to new figures.

The Scottish Retail Consortium (SRC) said there was a significant fall, of 1.8%, in sales of non-food items.

However, food sales increased by 3.5% as people stocked up for the festive season in the snowy weather.

Like-for-like sales, which do not include new stores, rose by 0.7% in December compared with 2009, while total sales were up by 3.4%.

Total sales in the UK as a whole saw a drop of 0.3% for the same period.

But Scottish growth was against a weaker December 2009, while the UK’s decline was from a strong previous year.

The freezing weather affected high street sales during the first half of December but boosted one-stop shopping and neighbourhood stores.

It did, however, benefit online sales early in the month but slowed again near Christmas as retailers experienced delivery difficulties.

SRC director Fiona Moriarty said there was a big rush in the last week before Christmas.

But she added: “It wasn’t enough to outweigh the damage to non-food sales from the combination of bad weather and fears about job cuts and falling incomes.”

David McCorquodale, head of retail in Scotland for accountants KPMG, said 2011 was set to be a challenging year but Christmas figures from retailers did not reflect the “dire picture” of two years ago.

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Austerity ‘could raise drug use’

heroin userThe forum has warned public sector spending cuts could mean less money to fund treatment for users.
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The current economic climate could lead to an increase in drug-taking in Scotland, a report has warned.

The Scottish Drugs Forum said fewer job opportunities and reduced welfare benefits could help create the conditions for more vulnerable people to turn to drugs.

Its annual report also warned public sector spending cuts could mean less money to fund treatment for users.

The Scottish government said drugs services funding was at record levels.

The Scottish Drugs Forum (SDF) is a voluntary sector drugs policy and information agency.

Its director, David Liddell, said Scotland must learn lessons from the 1980s, when massive youth unemployment created the drugs problem of today.

He also expressed concern about the effect of cuts to local authority funding, arguing it could hit the Scottish government’s strategy of promoting recovery from addiction.

Mr Liddell said about 55,000 people in Scotland were classed as problem drug users.

He said poverty and deprivation were strongly related to drug addiction.

“The recession means there are fewer job opportunities all round so many people – particularly young people in deprived communities – may not get their chance to work themselves out of poverty and may turn to drugs to alleviate their boredom and despair,” Mr Liddell said.

“This is especially so if education and training budgets are cut by hard-pressed public sector agencies and welfare benefits are squeezed to an absolute minimum.”

Mr Liddell added: “There is also the danger that people who have been getting on top of their drug problems may be tempted to revert to using because the vital support services for helping families in crisis, who have housing difficulties or who need pre-employability skills are cut because of a contraction of budgets.

“The current and future situation not only threaten the prospects of recovery for people struggling to overcome problematic drug use – they also present the real and very depressing possibility of attracting more recruits into harmful drug use.”

The Scottish government said record funding for drugs services would be maintained if the Scottish parliament approved its budget.

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Obama hosts China’s Hu at dinner

Barack Obama and Hu Jintao (11 November 2010)Mr Obama needs Mr Hu’s co-operation on climate change, North Korea, and Iran
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Chinese President Hu Jintao is to begin a four-day visit to the US, which will include the first state dinner there for a Chinese leader in 13 years.

Both countries hope to unveil a raft of commercial and trade deals when Mr Hu meets President Barack Obama.

After the state dinner at the White House on Wednesday, Mr Hu will go from Washington to Chicago for two days.

On Monday, some US senators pressed for Congress to penalise Beijing for “manipulating” its currency.

They said it was important to punish China if it did not allow the yuan to rise in value rather than manage its exchange rate, making Chinese products cheaper in the US and raising the price of US goods in China.

“There’s no bigger step we can take to preserve the American dream and promote job creation, particularly in the manufacturing sector… than to confront China’s manipulation of its currency,” Democratic Senator Charles Schumer said.

Mr Hu had earlier said the yuan was not undervalued, and that China had adopted a “managed floating exchange rate regime” determined by the balance of international payments and supply and demand.

He also questioned the role of the US dollar as the world’s reserve currency and criticised US monetary policy, saying that by keeping interest rates low, the Federal Reserve was devaluing the dollar and creating inflation elsewhere.

Members of Congress are also focusing on China’s human rights record. Human rights activists, pro-Tibet campaigners, Uighurs, Taiwanese and others are also planning to hold protests during Mr Hu’s visit.

US and Chinese officials met on Monday at the White House to discuss commercial and trade issues, including energy deals. President Hu is due to join them, along with officials from the commerce ministry, on Tuesday.

The US is also encouraging China to buy tens of billions of dollars of aircraft from Boeing, car parts, agricultural goods and beef.

A Chinese trade mission has already signed six deals with US companies in Houston worth $600m (£376m), according to Chinese state media reports.

Trade between the US and China is worth $400bn, up from $100m 30 years ago, when the US formalised relations with the communist state.

The Obama administration also needs Beijing’s co-operation on climate change, North Korea, and Iran’s controversial nuclear programme.

The White House is to throw a lavish black-tie reception for President Hu on Wednesday evening, before which he will be greeted on arrival by Mr Obama and the First Lady, review troops, and attend talks.

Mr Hu is said to have felt insulted when former President George W Bush opted for lunch rather than a state dinner during his last visit in 2006.

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