Category: news

At least one person is feared dead after a “serious incident” in Berkshire, police say.

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Service providers want to be able to charge for faster use of their networks

Culture minister Ed Vaizey has backed a “two-speed” internet, letting service providers charge content makers and customers for “fast lane” access.

It paves the way for an end to “net neutrality” – with heavy bandwidth users like Google and the BBC likely to face a bill for the pipes they use.

Mr Vaizey said ISPs must be free to experiment with new charges to help pay for the expansion in internet services.

But critics warn the move could harm free speech and stifle innovation.

Internet Service Providers (ISPs) are supposed to treat all web traffic equally – serving only as a one-size-fits-all pipe for whatever data is passing from content providers to end users.

But a debate has been raging around the world over how much they should be allowed to control the size of their pipes, and thus the internet speed that users get from the site.

In the US, President Barack Obama has backed net neutrality – treating all traffic equally – and regulators have threatened possible legal action against ISPs that block or restrict access to sites.

But some traffic management, where traffic from one source is favoured over another, is likely to be allowed, with a ruling due next year, Mr Vaizey suggests.

The EU has also backed traffic management but with greater transparency to ensure the internet remains “open” – something that will soon be enshrined in UK law.

Mr Vaizey argues that most ISPs already carried out traffic management “to ensure the smooth running of their networks” without any impact on competition or consumer rights.

In his speech, he argues that the continued quality of internet services in the UK is under threat due to the rapid expansion of mobile and wireless networks and the “massive investment” it needed.

As a result, ISPs had to be free to experiment with new ways of raising revenue – provided customers were clear about what they were buying.

He says: “We have got to continue to encourage the market to innovate and experiment with different business models and ways of providing consumers with what they want.

“This could include the evolution of a two-sided market where consumers and content providers could choose to pay for differing levels of quality of service.”

He also suggests that content makers could be charged for the first time for the use of the ISP’s networks – provided they too were clear about what they were getting.

“Content and application providers should be able to know exactly what level of service they are getting especially if they are paying for it,” he says.

He added that the government did not want to introduce new laws on top of those already being adopted from the EU to guarantee an “open” internet, arguing that light touch regulation was better.

He also argued that, that unlike in the US where some areas only had the choice of one service provider, there was enough rivalry between providers to ensure consumers’ rights were protected.

“The essential competition we enjoy in Europe and especially in the UK, will be an essential safeguard against unfair discrimination,” he argues.

He said ISPs must also guarantee that net users can continue to access any legal website or content.

“In order for the internet to continue as the open, innovative force for good that it has been over the past 20 years it is essential that all elements continue to prosper.

“This means ensuring that content providers and applications have open access to consumers and vice versa.

“But it also means allowing ISPs and networks to innovate and experiment with new ways of delivering what consumers want so we can ensure continued investment in the infrastructure that delivers the content and applications we all use.”

But Jim Killock, of net freedom campaigners the Open Rights Group, said the proposals could have “appalling” consequences for free speech and commercial innovation.

“Ed Vaizey is wrong to assume that there is no problem if BT or Virgin restrict people’s internet access for their commercial advantage. Removing ‘net neutrality’ will reduce innovation and reduce people’s ability to exercise their freedom of speech.

“This is why ORG will campaign against any market abuse, should Ed Vaizey allow it to happen.”

But the Internet Service Providers Association (ISPA) welcomed what it called Mr Vaizey’s “lightly-regulated, market-based approach” towards traffic management, adding that ISPs should be “open and transparent” to boost confidence in the industry.

An ISPA spokesman said: “This approach will reassure those who are investing in networks and coming up with new, innovative online business models.

“A number of ISPA members already provide consumers with clear information on traffic management practices and we expect to see this extended.

“ISPs use traffic management techniques so that they are able to effectively and efficiently run and manage their networks for the benefits of all users.

“This enables ISPs to prioritise time-sensitive applications, such as VoIP and online gaming, at peak times.”

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

Thousands of public sector workers across Scotland stand to have their salaries frozen

The Scottish government is announcing its final budget plans before next May’s election, which is expected to include about £1bn of savings.

Finance Secretary John Swinney is planning to cut public sector costs in the year ahead, through a pay freeze and an end to big bonuses.

He also wants to move some day-to-day spending to projects involving capital investment, to help save jobs.

But opposition parties have accused the SNP of planning an “election budget”.

The spending plans are being brought forward in a Budget Bill, which is expected to face a final vote in parliament at the start of 2011.

Labour, the Tories and the Lib Dems said ministers should be announcing a full, three or four-year budget, which is normal practice at the start of a new Spending Review period.

In return for public sector pay restraint – which could see a year-long pay freeze and a £300m saving – Mr Swinney said the government would relieve pressure on peoples’ household bills.

He will press forward with a council tax freeze, in place for the last three years, and has given his commitment to policies such as scrapping prescription charges and continued funding for free care for the elderly.

Mr Swinney told BBC Scotland: “We’re setting out one-year, specific budget proposals that will address the most significant reduction in public expenditure that Scotland has ever faced since devolution.

“What we’ll also set out is an explanation of where we see the development of public services taking course in the years to come.”

The finance secretary said Scotland’s budget would be cut by £1.3bn as a result of the UK Spending Review, although Westminster ministers have put the reduction at £900m.

He added: “I’m going to be very open with people in Scotland about some of the difficulties that we’ve had to face.”

Scottish Labour leader Iain Gray attacked the SNP’s record on capital investment, adding: “John Swinney has let down Scotland badly at the toughest time for the Scottish economy in a lifetime. His record will go down as four wasted years.

“The SNP’s blind dogma cut off the pipeline for capital projects worth £2bn and with it the loss of 40,000 construction jobs.

“This would be bad enough at the best of times but the SNP have left Scotland more vulnerable than the rest of the UK during the recession.”

Tory finance spokesman Derek Brownlee, along with the Lib Dems, backed a pay freeze, but argued the measure did not save money in itself.

He said: “What the country needs instead is a longer term plan on how we get the public finances back on a sustainable footing so we can all have a bit of confidence about where we’re heading as a country.

John Swinney pledge to be “open” with the people of Scotland on the budget

“The challenge for the SNP is whether they want to approach this budget as a party of government or as a campaigning party.”

The Liberal Democrats’ Jeremy Purvis added: “We are prepared to work constructively with the Scottish government to make sure there is a budget for all of Scotland.

“But the signals from the SNP are not good at the moment – they are only looking at a very short-term set of proposals, and, at the moment, it looks like they’re only focusing on the next six months and that is not the type of government the country needs.”

The Scottish Greens – whose two votes are vital to getting the budget through parliament – called on the government to use existing powers to raise cash, including the ability to increase the basic rate of income tax by 3p in the pound.

Green MSP Patrick Harvie said: “This week, it seems likely the Scottish people will be offered four variations on a theme by the other parties, four ways to implement Tory cuts.”

The Scottish government gave a flavour of things to come even before the budget announcement, after announcing on Tuesday that NHS consultants’ bonuses would be frozen for a second year, while the perk would not be given to anyone who was not already getting it.

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

The merged company will inherit about 16,000 staff

Shares in Northern Foods have jumped 24% after the maker of Fox’s biscuits and Goodfella’s pizzas revealed plans to merge with Irish rival Greencore.

The new combined company, to be named Essenta, will have annual sales of £1.7bn and be headquartered in Dublin.

The news gave the flagging British food manufacturer a fillip, returning its shares to a level not seen since May.

The merger terms will see shareholders in the two firms end up with roughly equal ownership of the new company.

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The merger, which is expected to be completed by next spring, will see Northern Foods shareholders receive 0.4479 shares in the Irish chilled food and sandwich manufacturer in exchange for every share they own in the UK company.

“The proposed merger is a great opportunity to develop fully the potential of both companies,” said Anthony Hobson, chairman of the Leeds-based Northern Foods in a statement published on the firm’s website.

The companies hope to achieve cost savings of £40m per annum by 2014. Northern Foods currently employs about 9,000 people, while Greencore has 7,000 staff.

Greencore’s chief executive, Patrick Coveney, will take over the running of the new company, while Northern Foods’ Mr Hobson will retain his role as chairman.

It is unclear what the future of current Northern Foods chief executive Stefan Barden will be.

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