Marathon Lords debate adjourned

Lord Falconer

Highs and lows of a very long night in the House of Lords

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Peers made a beeline for the exits as a marathon debate on voting changes got going again in the House of Lords.

Labour’s Lord Falconer said he was “profoundly disappointed people are not staying for the rest of this debate”.

His party objects to plans to cut the number of constituencies, part of a bill proposing a referendum on changing the voting system.

Labour has been accused of “time-wasting” tactics, after an epic all-night session, which started on Monday.

Just six amendments to the Parliamentary Voting System and Constituencies Bill were debated in nearly 21 hours.

For the referendum on the introduction of the Alternative Vote (AV) for Westminster elections to take place as planned on 5 May, the Bill needs to be law by 16 February.

This is because the Electoral Commission needs a full 10 weeks, as set out in previous legislation, to fully prepare for a referendum.

WHAT IS ALTERNATIVE VOTE

Under the AV system, voters rank candidates in their constituency in order of preference.

Anyone getting more than 50% of first-preference votes is elected.

If no-one gets 50% of votes, the candidate with the fewest votes is eliminated and their backers’ second choices allocated to those remaining.

This process continues until one candidate has at least 50% of all votes in that round.

Peers ready for sleepless nights Vote reform: Where parties stand Q&A: Alternative Vote referendum

Frustration spilled over into the Commons earlier, with Deputy Prime Minister Nick Clegg accusing Labour of relying on its “dinosaurs” in the House of Lords to prevent the public from having a say on Britain’s voting system.

Mr Clegg conceded the battle with the Lords had meant the legislation had “somewhat stalled” but stressed: “It will be passed. We are determined that it shall be passed.”

During rowdy Commons exchanges, Mr Clegg rounded on Labour leader Ed Miliband, accusing him of “weak political leadership” for allowing his peers to behave in this way.

Opposition has focused on the part of the Bill that plans to cut the number of MPs from 650 to 600, which Labour believe would favour the Conservatives.

Lord Falconer warned the government that unless the measure was dropped the legislation would not become law in time for the May referendum.

But he said Labour would cooperate to ensure a 5 May referendum if the Bill was split to allow separate consideration of the constituency changes.

Lord Falconer said: “If the government insist on their timetabling arrangements, then we have no option but to do all in our power to ensure that the Bill does get proper scrutiny and therefore that it will not receive Royal Assent by February 16 if it still contains Part 1 and Part 2.”

Baroness Warsi, co-chairman of the Conservative Party, said: “These time-wasting tactics by former Labour MPs are preventing the public from having a say on a policy Ed Miliband claims he supports.

“His failure to act is either a sign he is weak and cannot control his own party or that he is being opportunistic and playing politics ahead of an important referendum.

“Ed Miliband needs to say clearly whether he supports these tactics or an AV vote.”

Liberal Democrat party president Tim Farron has written to party members asking them to call on Labour peers and MPs to end their “filibuster” of the Bill.

Mr Farron said: “Labour peers are holding the democratic process hostage by blocking any progress of the Parliamentary Voting System and Constituencies Bill.

“Ed Miliband has spoken of a new way of doing politics but the tricks employed by Labour peers are the worst example of petty party politics.”

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Tunisia ministers quit amid anger

breaking news

Three ministers have withdrawn from the national unity government unveiled only a day ago in Tunisia, reports suggest.

They are reportedly from the General Union of Tunisian Workers (UGTT), which played a key role in protests which ousted the former president.

PM Mohammed Ghannouchi angered many protesters when he kept several ministers from the former ruling party in their jobs.

The government now admits 78 people died in a month of protests.

Mr Ghannouchi had hoped to placate protesters on Monday by announcing a government of national unity – which included members of the opposition but also retained members of the ruling RCD party in key ministerial positions.

But some protesters had denounced the new administration as a betrayal and now the junior transport minister has said he and two other ministers are leaving, AP news agency reported.

French news agency AFP named him as Anouar Ben Gueddour and the other two as Abdeljelil Bedoui and Houssine Dimassi. It said all three were members of the UGTT – which earlier reportedly decided not to recognise the new government.

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Australia floods menace Victoria

Wimmera River on January 17, 2011 in Horsham, AustraliaHorsham residents are watching the Wimmera River take over their homes

The southern Australian town of Horsham has been split in two by water and at least one young boy is feared drowned.

Rains which had laid waste to Queensland are now threatening the state of Victoria where flood waters continue to rise.

Prime Minister Julia Gillard said she had formed a panel of corporate leaders to support recovery.

The floods have been described as Australia’s most expensive natural disaster.

“We know many communities are anxiously waiting as floodwaters rise and many townships across Victoria have already been impacted by floodwaters,” Ms Gillard said.

“We also know that a small boy is missing, and so these are very difficult times in Victoria.”

An eight-year-old boy disappeared in a flooded waterhole near the town of Shepparton on Monday morning and has not been found.

Electricity cuts have occurred as power stations have been flooded. More than 3,500 people have evacuated their homes in the north central part of the state.

Sandbags have been stacked up to try to withstand the waters, which are expected to peak later today.

“You can’t control nature totally, but I think to the extent we had about three or four days’ warning and we have an experienced emergency team, I think we’re going as well as we can,” Horsham Mayor Michael Ryan said.

Another official in Horsham, David Eltringham, said the town was expecting “a one-in-a-100-year flood”.

“We are expecting to see the peak maximum flood levels today and inundation will come with that,” an emergency services spokeswoman said.

“Significant inundation of properties is currently being experienced with water up to a metre [3ft] deep in some areas.”

Residents of Horsham Australia volunteer to fill sandbags 17 Jan 2011Horsham residents are pitching in to help fill sandbags to hold back the waters

Further north, at least 30 people died in floods in Queensland. Ten people are still missing, and recovery efforts are proving slow and gruesome.

The government has also warned that the floods in Queensland could be the country’s most expensive natural disaster ever.

Ms Gillard said the country needed private industry to help the recovery and reconstruction effort.

“I’ve decided to bring together 10 Australian leading business people to form a business round-table to assist with corporate support, as Queensland recovers and rebuilds from these devastating floods,” she said.

Anna Bligh, Premier of Queensland, said her state needed “business and corporate Australia standing with us” and “community members doing what they’re doing out there with mops and buckets, digging into their pockets and putting some money into the relief appeal.”

Ms Bligh announced an inquiry into flooding that would look at issues including the operation of dams and would serve as an investment in the state’s future.

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Irish PM facing confidence vote

Brian CowenBrian Cowen said he believes he has the numbers to survive the vote
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The Irish prime minister is due to face a confidence vote over his leadership of the ruling Fianna Fail party.

On Sunday, Brian Cowen called the vote while indicating his wish to lead the party into a spring general election.

It followed two days of consultation with party colleagues with some backbenchers demanding his resignation.

Mr Cowen has faced scrutiny over a meeting he held with the head of Anglo Irish Bank shortly before he announced a multi-billion euro bank guarantee.

“One of the unwritten rules of politics is that a prime minister can survive with just one senior cabinet minister against him – but two is potentially fatal”

Mark Simpson BBC Ireland Correspondent

One of those believed to be a rival for the top job, foreign minister Micheal Martin, has already pledged to vote against Mr Cowen in the secret ballot.

Finance minister Brian Lenihan, whose support for Mr Cowen is seen as crucial to his survival, has refused to be drawn on what his position will be.

Speaking on RTE on Monday evening, Mr Cowen said his party faced a fight ahead of the election and needed a fighter at its head.

He added that he was convinced that he had the numbers necessary to pass the motion and that he had acted honourably in seeking to the put the question of his leadership to the party.

Mr Martin, whose offer to resign was rejected by Mr Cowen, said he had challenged the prime minister because the future of the party was at stake.

Potentially fatal

BBC Ireland correspondent Mark Simpson said that Mr Cowen’s supporters remain confident of a comfortable victory.

“That could change, however, if the finance minister Brian Lenihan joins the ranks of the rebels and voices his opposition to Mr Cowen.

“One of the unwritten rules of politics is that a prime minister can survive with just one senior cabinet minister against him – but two is potentially fatal.

“Mr Lenihan’s refusal to clarify his position on Monday evening may well have led to a sleepless night for Mr Cowen.”

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UK inflation rate rises to 3.7%

Graphic showing the drivers of UK inflationInflation is being driven by air transport, fuel, utilities and food costs

UK inflation jumped in December with the Consumer Prices Index (CPI) rising to 3.7%, up from 3.3% in November.

Retail Prices Index (RPI) inflation – which includes mortgage interest payments – rose to 4.8% from 4.7%.

The rise will put further pressure on the Bank of England to lift interest rates to curb rising inflation.

The recent VAT rise from 17.5% to 20% could further fuel inflation, which has now remained above the 2% target by one percentage point or more for 13 months.

Steve Bell, chief economist at the GLC asset management firm, said the inflation rise meant the chances of an interest rate rise had “increased substantially”.

The Office for National Statistics said the biggest drivers of inflation were air transport, fuel, utility bills and food costs.

Fuel prices increased at their fastest annual rate since July, while the cost of food showed its biggest annual rise since May 2009.

Analysis

This inflation rise has come as quite a shock.

The jump in the annual rate from 3.3% to 3.7% has come even before the VAT increase took effect.

The pressure on consumer prices from surging international commodity costs is all too clear.

Transport, including air fares and fuel for motorists, rose by the largest monthly amount on record.

Food prices saw the largest ever increase for the month of December.

This is a real headache for the Bank of England as it debates whether to raise interest rates or to stick with its belief that the impact of volatile commodity prices will fall away next year.

“The question is whether the peak is 4.1, or is it higher?” said Alan Clarke, economist at BNP Paribas.

He added: “It confirms my suspicion that the first rate hike will come this year; the only question is how soon.

“Our call is August, but clearly there is a risk it comes as soon as May.”

The Bank of England’s governor, Mervyn King, had to write four letters to the chancellor last year as a result of rising inflation.

But with the new government having announced the biggest round of budget cuts since World War II, the Bank still expects the resulting slowdown in spending to bring inflation down over the next two years.

The latest increase was more than economists had expected and above the Bank of England’s own forecasts.

And core inflation, which strips out volatile items such as energy and food prices, rose from 1.9% to 2.9%.

Chart showing UK inflation since 2000

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King’s Speech leads Bafta field

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The King’s Speech is leading the way in the nominations for this year’s Baftas with 14 nods, followed by ballet thriller Black Swan, with 12.

Tom Hooper’s film about King George VI is up for best film and director while Colin Firth is up for best actor.

Co-stars Geoffrey Rush and Helena Bonham Carter are both up for best supporting actor awards.

Pete Postlethwaite, who died a fortnight ago, is nominated in the best supporting actor category for The Town.

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China’s Hu to make US state visit

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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Tunisia’s PM defends new regime

Prime Minister Mohammed Ghannouchi

Tunisian Prime Minister Mohammed Ghannouchi said the new government would work “towards democracy”

Tunisia’s new unity government is beginning work amid lingering tensions on the streets following the overthrow of President Zine al-Abidine Ben Ali.

PM Mohammed Ghannouchi is among several old faces remaining in the new government, sparking fears that the protests could continue.

But the BBC’s Wyre Davies says pledges to allow political and media freedoms have placated many protesters.

The government now admits that 78 people died in the recent violence.

Riot police remain on the streets of the capital Tunis, our correspondent reports.

He says the task now will be to move quickly to begin the constitutional reforms and preparation for free and fair elections which Tunisians have been promised.

He says another urgent challenge is to begin to return economic stability to the country – the crisis is estimated to have cost it some $2bn (£1.3bn).

Unveiling his new administration on Monday, Mr Ghannouchi said the foreign, interior and defence ministers would retain their jobs, along with himself.

But he named three prominent opposition figures to key posts in the government.

TUNISIAN CABINETMohammed Ghannouchi stays on as prime minister. A Ben Ali ally, he has been in the job since 1999, keeping post throughout unrestInterior Minister Ahmed Friaa, appointed by Mr Ben Ali to mollify demonstrators, retains postForeign Minister Kamal Morjane retains postNajib Chebbi, founder of opposition Progressive Democratic Party, named as development ministerAhmed Ibrahim, leader of opposition Ettajdid party, named minister of higher educationMustafa ben Jaafar, leader of opposition Union of Freedom and Labour, named health ministerSlim Amamou, prominent blogger who was arrested during protests, tweets that he is secretary of state for youth and sportIn pictures: Tunisia’s lingering unrest ‘1,000 Britons’ remain in Tunisia Tunisian bank denies gold taken

Ahmed Ibrahim, leader of the opposition Ettajdid party, becomes minister of higher education, while Mustafa Ben Jaafar, of the Union of Freedom and Labour, is to serve as health minister.

Najib Chebbie, founder of the Progressive Democratic Party, was named as Tunisia’s new development minister.

Mr Ghannouchi said all political parties would now be allowed to operate in Tunisia.

Political prisoners would be freed and the media would be permitted “total freedom”, he added.

“We have decided to free all the people imprisoned for their ideas, their beliefs or for having expressed dissenting opinions,” the AFP news agency reported him as saying.

The announcement of the new government included a pledge to abolish Tunisia’s information ministry and to create a state where the media had “total freedom”.

But correspondents say it remains to be seen whether the inclusion of several veteran ministers in senior positions will be acceptable to those protesting on the streets.

Unrest in Tunisia grew over several weeks, with widespread protests over high unemployment and high food prices pitching demonstrators against Tunisia’s police and military.

After dozens of deaths, President Ben Ali fled to Saudi Arabia on Friday.

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