Students to bolster French strike

French students protest in Nantes. Photo: 21 October 2010President Sarkozy is hoping the parliament vote will quell the protests

French students will stage protests on Tuesday to try to bolster opposition to the government’s pension reforms amid some signs of cracks in the movement.

The numbers could be a litmus test, correspondents say, after three of 12 national oil refineries voted to end their action and a rubbish collectors’ strike in Marseille was suspended.

The row comes to a head this week.

Parliament is expected to hold a final vote on Wednesday, while a nationwide strike has been called for Thursday.

The vote in parliament is expected to bring into law an increase in the minimum retirement age from 60 to 62.

The BBC’s Christian Fraser in Paris says the students are supposed to be on half-term break but instead are planning a series of marches around the country in opposition to the plan to increase the minimum retirement age.

President Nicolas Sarkozy will be hoping the vote – and the 10-day school holiday – will take the sting out of the protest.

But our correspondent says the students will be out to prove him wrong and how many come out will be the litmus test of where this protest is heading.

On Monday, all of France’s 200 fuel supply depots were cleared of strikers.

And unions said that rubbish collectors in the southern port of Marseille would end their high-profile two-week strike on Tuesday.

However, our correspondent says that seven French refineries are still closed, buffer stocks of petrol and diesel are almost exhausted and unless refineries reopen, France could face an even more serious fuel crisis by the end of the week.

The government has warned that the disruption in threatening the country’s fragile economic recovery.

Marseille rubbishRubbish has been filling the streets of Marseille

Finance Minister Christine Lagarde said on Monday that the strikes were costing France up to 400m euros (£350m; $561m) a day.

The president says the reform is an “inevitable” measure in the face of France’s rapidly ageing population and growing budget deficit.

His defence of the deeply unpopular reforms has seen his approval ratings plummet to a record low of 29%, according to a poll published last Sunday.

However, the vote in parliament is almost certain to pass.

An MP from Mr Sarkozy’s party, Pierre Mehaignerie, said: “We must be aware that in a world without borders we can’t have a French exception… that exists nowhere else.”

But millions of people have come out on to the streets in a series of protests over the past few weeks and French trade unions have called another nationwide strike on Thursday.

That will be followed by yet another on 6 November, the unions say, unless Mr Sarkozy withdraws the pension law or opens negotiations.

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High mountains, low tax

The picturesque village of Pfaffikon looks out onto Alpine mountains.

Thirty minutes from Zurich and dotted with traditional dairy farms, it might seem an unlikely location for some of Britain’s biggest hedge funds.

But it is one of a number of Swiss regions competing to offer ever lower tax rates in a bid to tempt British businesses to relocate.

Two cows on a mountainside overlooking the Swiss village of Pfaffikon.The hills are alive with the sound of cowbells – and construction workers.

The village, in the area of Höfe in Schwyz is clustered around a shimmering lake which reflects the lush green, rural backdrop.

However the scenery is also now increasingly dominated by building sites as it reinvented itself as a hedge fund centre by offering low personal tax rates to attract cash-rich fund managers.

Spa hotels and up-market furniture retailers are springing up on the outskirts to cater for the new clientele.

Around the lake, glass-fronted office developments are being squeezed in-between traditional Swiss chalets. One of these is a recently opened ‘hedge fund hotel’.

“It’s an incubator for hedge funds,” said Marcel Jouault of the business promotion department at Pfaffikon.

“We have a lot of interest from hedge funds who want to come here for the lowest tax rates in the country, they are often spin offs from banks who are used to being in a big infrastructure, so they need a back office, middle office, and secretarial support. We offer a hedge fund hotel to do all that.”

“Our philosophy is to offer the lowest taxes possible. ”

Dr Bernhard Neidhart Zug Office for Economy and Labour

The village now has over US$100bn (£62.45bn) of assets under management and can boast that one in nine of its 10,000 inhabitants is a millionaire.

Attracted from London by the low personal tax of just 18% wealthy fund managers are keen to avoid the 50% UK tax levied on earnings over £150,000 a year.

The village is already home to one of the two headquarters of the Man Group, the world’s largest publicly traded hedge fund.

This combination of existing funds and low tax is expected to attract further relocations from London.

“We are getting a lot of enquiries from the UK. Many hedge funds are in the process of establishing here, and many more are coming and looking around,” said Marcel Jouault.

“I’ve been here six years and I’ve never known it so crazy.”

In Switzerland the drive to attract investment has led to fierce tax competition between different Cantons. The beneficiaries include foreign companies, many from the UK, who can shop around for the best tax deal.

Sixty kilometres away from Pfaffikon, the low tax regime in the larger town of Zug is also attracting some of the world’s biggest multinational companies, many setting up their headquarters in the town.

“Our philosophy is to offer the lowest taxes possible. The maximum tax a company would pay here in Zug is just 8.8% tax,” said Dr Bernhard Neidhart of the Zug Office for Economy and Labour.

Abird's eye view of Zug with snowcapped mountains, forests and a lake.Snowcapped mountains frame the low-tax town of Zug

The prospect of a tax saving of around 20% when compared to UK corporation tax has led some of Britain’s biggest companies to the town. Last month Warwickshire-based plumbing giant Wolseley announced it was making the move in a bid to save an estimated £23m in British taxes.

“There’s no sign of the recession in Zug,” said Robert Baldwin of Packimpex, a relocation company.

“We are dealing with some very large UK companies now who are looking at Zug specifically. When they move it will certainly hit the headlines in the UK.”

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But although Zug is home to 29,000 registered companies, not all have a physical presence in the town.

In June 2008, the high street chemist, Boots, which has a 150-year history in Nottingham, moved the registered head office of its parent company, Alliance Boots, to Zug.

On its website the company gives its address as Baarerstrasse, a central street in Zug.

But a visit to the address, an office block, opposite a pizza takeaway and a hotel, revealed that there is no physical office location in the town. Instead, the registered office is housed in a Swiss post office – in an anonymous post office box alongside dozens of others.

The company denies its registration in Zug is a device to avoid UK corporation tax payments, and says it does have a Swiss administrative office based in Zurich.

“We believe that having a Swiss presence enhances the position of Alliance Boots as a leading international pharmacy-led health and beauty group” said George Fairweather, group finance director at Alliance Boots.

“Alliance Boots complies fully with the relevant local tax legislation in each of the countries in which it operates,” he added.

Although Zug is benefiting from an influx of foreign companies, there’s concern that simply facilitating the legal registration of companies without attracting the physical relocations of staff and operations will have little long term economic benefit.

“There is a problem with companies coming in as ‘brass plates’,” said Robert Baldwin.

“The Canton would like to see companies make a real commitment and employ local people.”

In the meantime, the taxation battle between different Swiss regions continues to drive tax rates down. Earlier this month Pfaffikon announced plans to cut its tax rates to the lowest in Switzerland from 2011.

The gauntlet is down to see if other regions will be prepared to beat that by continuing to cut rates yet further.

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Thatcher set to stay in hospital

Baroness ThatcherLady Thatcher has previously suffered minor strokes

Baroness Thatcher is to stay in hospital for at least the next few days as she continues to recover from flu.

The former prime minister is said to be “making good progress” after almost a week at Cromwell Hospital, west London.

At the weekend she was sitting up in a chair and feeling much brighter, and her spokesman said she remained fine.

Lady Thatcher was forced to pull out of a Downing Street reception hosted by Prime Minister David Cameron to mark her 85th birthday on 14 October.

The event went ahead without her, with Mr Cameron relaying a message of regret from her to the 150 guests.

Lady Thatcher, who has previously suffered minor strokes, rarely speaks in public, but still attends public functions.

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Bonfire Night strike ‘reckless’

Firefighters at the scene of a fire in Peckham, south-east LondonThe first strike went ahead on Saturday

Firefighters in London are to strike on Bonfire Night in a row over new contracts, their union has said.

The 47-hour action is the third strike date announced since the Fire Brigades’ Union (FBU) said 79% of its members voted in favour of industrial action.

They say the dispute centres on plans to scrap current rotas and force staff to sign new contracts or face the sack.

London Fire Brigade said changes were needed so the public would remain protected while budgets were squeezed.

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Crews staged an eight-hour strike on Saturday and another is planned for Monday 1 November.

The FBU said thousands of its members will walk out from 1000 GMT on 5 November until 0900 GMT on 7 November.

FBU general secretary Matt Wrack said they had been left with no choice.

“The alternative is to allow London’s firefighters to become doormats for their employers to walk on,” he said.

“The long-term safety of Londoners depends on a well-trained, self-confident firefighting force. The chairman of the London Fire and Emergency Planning Authority, Brian Coleman, issues calculated insults and says he’s relaxed and sacking all of them.

“He and the Commissioner, Ron Dobson, want to run the London Fire Brigade as though it were a Victorian mill. They want a frightened and obedient firefighting force. We simply cannot accept that.”

Urging the authority to meet representatives and come up with a solution he said: “There’s still nearly two weeks for the London Fire Brigade to get this right.”

Speaking during the strike at the weekend, Mr Coleman said: “This action is based on suggested cuts, but there are no cuts.”

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Fear amid Haiti cholera progress

A woman with her young child at hospital in Saint-Marc (22 October 2010)Aid agencies say basic hygiene steps can stop the spread of cholera

The numbers of people killed by cholera in Haiti appears to be slowing, with only six new deaths reported in the past 24 hours, the government says.

A total of 259 people are now known to have died from the disease, the head of Haiti’s health ministry said.

Three hundred new infections have been recorded, taking the total to 3,342.

But aid agencies and the UN remain concerned that the disease could spread further, and are boosting prevention efforts in Haiti’s quake-hit capital.

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The disease is seen as a serious threat to 1.3 million earthquake survivors living in tent camps near the Port-au-Prince.

There are also major concerns for the city’s slums, which made up some 80% of Port-au-Prince even before the earthquake struck, the United Nations says.

Five cholera cases were detected on Saturday in Port-au-Prince, but they were quickly diagnosed and isolated. Another 20 suspected cases are under investigation, medical aid organisation Medecins Sans Frontieres (MSF) told the BBC.

Haiti has not seen a cholera outbreak for 100 years and many people are said to be frightened by the news of the outbreak and unsure of what steps to take to avoid the disease.

Poor sanitary conditions make the camps and slums vulnerable to cholera, which is caused by bacteria transmitted through contaminated water or food.

Cholera causes diarrhoea and vomiting leading to severe dehydration, and can kill within 24 hours if left untreated. It is easily treated through rehydration and antibiotics.

The director general of Haiti’s health department, Gabriel Thimote, confirmed on Monday that the rate of increase in cholera deaths had slowed.

However, the number of infections had increased by 10% since Sunday, rising from 3,015 to 3,342, and aid agencies insisted they would remain on alert.

Haiti cholera map

“To be honest, I believe the death toll will increase in the coming days,” said Harold Paul, regional emergency manager for UK aid organisation Christian Aid.

“My sense is that in two weeks the situation will be under control. The death toll will increase in Artibonite, but seems to be contained in Plateau Central. But in Port-au-Prince, let’s wait and see.”

Michel Van Herp of MSF, medical advisor to the organisation’s teams working in Haiti, said 400 people remained in hospital in Saint-Marc, the town at the centre of the Artibonite outbreak.

CholeraIntestinal infection caused by bacteria transmitted through contaminated water or foodSource of contamination usually faeces of infected peopleCauses diarrhoea, vomiting, severe dehydration, and can kill quicklyEasily treated with antibiotics; not usually fatalCholera ‘difficult to predict’ BBC details on Cholera

Another 150 people were being treated in hospital in the town of Mirbalais, along the Artibonite river, he said.

While he conceded that most infections were in the Artibonite region, Dr Van Herp said MSF would remain on alert.

“We are preparing ourselves for the worst case scenario, which is a cholera outbreak in the whole country,” he told the BBC.

Previous experience responding to cholera in Latin America in the early 1990s suggested that the disease could spread easily across large areas and could incubate for a number of days before presenting symptoms, Dr Van Herp said.

In Haiti, UN spokeswoman Imogen Wall said most effort was being directed into setting up dedicated treatment centres and making sure people across Haiti were kept informed of the best ways to stem the spread of the virus.

She cautioned that a temporary lull in the increase of infections did not guarantee the crisis was coming to a quick end.

“One day does not mean anything in terms of spread,” Ms Wall told the BBC.

Cholera patients

The BBC’s Laura Trevelyan: “Cholera spreads at an alarming rate”

The UN’s Office for the Co-ordination of Humanitarian Affairs was managing the mass distribution of soap and other basic hygiene items, including bucket with lids to prevent clean water becoming contaminated, she said.

But the UN remained concerned that areas outside of its post-earthquake emergency remit, including the slums of Port-au-Prince, were especially vulnerable to infection.

While diarrhoea is endemic in Haiti, cholera remains unfamiliar to most people, Ms Wall said. Simple precautions including the use of soap in hand-washing were not familiar to most people.

“Everyone has heard about cholera now, but we need to keep pushing the message,” she added.

The worst-hit areas of the outbreak are Saint-Marc, Grande Saline, L’Estere, Marchand Dessalines, Desdunes, Petite Riviere, Lachapelle, and St Michel de l’Attalaye.

A number of cases have also been reported in the city of Gonaives, and towns closer to the capital, including Archaei, Limbe and Mirebalais.

This is the first time in a century that cholera has struck the nation, which has enough antibiotics to treat 100,000 cases of cholera and intravenous fluids to treat 30,000, according to the UN.

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Palace greeting for Chile miners

President Sebastian Pinera (l) hands a football to Franklin Lobos after the latter's rescue.President Pinera will decorate the miners before the football match in the National Stadium

Some of the 33 Chilean miners who were rescued after more than two months trapped underground will on Monday face their rescuers and government officials in a football match.

The game will be played in Chile’s National Stadium in the capital, Santiago.

The miners’ team is being coached by one of the rescued men, Franklin Lobos, a former professional footballer.

Mining Minister Laurence Golborne is expected to play for the opposition.

Some reports say that due to the number of miners and the lack of fitness of some of the players, it will be a 16-a-side match, rather than 11-a-side.

Before the match, the miners have been invited to the presidential palace in Santiago.

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President Sebastian Pinera will decorate them with medals to commemorate the 200th anniversary of Chile’s independence from Spain.

The bicentenary was celebrated in Chile in September when the men were still trapped underground.

One of the miners, Mario Gomez, has said they will discuss with the president ways of improving safety in mines.

The BBC’s Gideon Long in Santiago says the miners have become celebrities not just in Chile, but around the world since being rescued nearly two weeks ago.

Books about their ordeal are being written, while there has been talk of Hollywood films of their story. Some of the men have been to Spain to appear on a TV chat show.

People have been queuing up in Santiago and at the World Expo in Shanghai to have their photographs taken next to the Phoenix escape capsules that were built to bring the men to the surface after more than two months underground.

And the message that announced that the trapped men were alive and well has been copyrighted on behalf of the miner who wrote it, Jose Ojeda.

Chilean writer Pablo Huneeus registered the phrase in Mr Ojeda’s name. It was discovered attached to a probe 17 days after the mine collapse.

Mr Pinera showed off the note during his visit to Europe last week and in the Uk gave copies of it to the Queen and prime minister.

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Nigeria issues fraud blacklist

Nigerian nairaThe alleged frauds involve billions of naira

Senior politicians and businessmen are among more than 100 people listed by Nigerian anti-fraud police as being unsuitable to run for political office.

The EFCC (Economic and Financial Crimes Commission) said those on the list were all being prosecuted for corruption.

The commission urged political parties not to endorse them as candidates in next year’s elections.

One of those named, Orji Kalu, is running for president but has been arraigned on 107 counts of fraud.

He is accused of involvement in a fraud worth 5bn naira (£21m; $33m).

Politicians make up at least 40 people on the list, which the EFCC has published on its website.

Thirteen are former state governors, five are former ministers, three are serving MPs, and two are serving senators.

The BBC’s Caroline Duffield, in Abuja, says fraud charges are no barrier to standing in elections, and some of those named are already campaigning.

But EFCC officials say that they believe those facing prosecution should not be endorsed as candidates.

The commission is appealing to political parties to select only “credible candidates” and not those on the list.

The EFCC says many of the defendants are deliberately stalling their cases in court so that they will not be tried before the elections next year.

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