Social care costs ‘need capping’

Patient and carerSocial care is currently means-tested
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Social care costs in England should be capped so people do not face losing their assets, a review is to say.

Council-funded home help and care home places for the elderly and adults with disabilities are currently only offered to those with under £23,250 of assets.

The independent Dilnot report, being published later, will say the threshold should rise to £100,000 and suggest a £35,000 cap on costs would be “fair”.

But ministers have indicated the level of any cap will need to be discussed.

Last year the coalition government asked economist Andrew Dilnot to look into how the system of funding social care in England could be changed amid concerns it was getting harder for people to get access to state support.

The ageing population and squeeze on councils budgets have led councils to impose stricter criteria on who can get help.

Care across the UKMany councils in England have stopped providing support to those with low and moderate needsThe Dilnot Commission was set up in July 2010 to establish how to achieve an affordable care system for adults in EnglandWales and Northern Ireland both have means-tested systems which are similar to EnglandScotland provides free personal care, but in recent years has tightened the eligibility criteria for the same reasons as councils in England

It means while 1.8m are getting state funding, another 1m-plus either have to pay for support themselves or go without.

Instead of this system, Mr Dilnot’s commission will recommend a partnership between the state and individual whereby the high costs are covered by the government – one in 10 people aged over 65 faces care costs of more than £100,000 over their lifetime.

But the individual should be liable for the first tranche of care with a cap in costs set at between £25,000 and £50,000, the report will say. It will suggest £35,000 as the ideal figure.

The hope is that with the state paying for the high-cost cases, the insurance industry would be encouraged to develop polices which would cover any care costs below the cap.

Means-testing should remain so that the poorest would not have to pay, the commission will recommend, but it will say the threshold should be raised for those going into residential care.

“Social care is at crisis point – we cannot go on as we are doing”

Michelle Mitchell Age UKCall for cross-party care talks

At the moment, people with assets, including the value of their house, of over £23,250 pay for all their care.

The commission will say this should be increased to £100,000 to better reflect the rise in property value seen over the past 20 years.

The report will also call for an end to the ever-tightening restrictions being placed on access. Instead, it will say that there should be a national standard so everyone has the same access no matter where they live.

However, an overhaul on this scale is likely to cost the government more.

It has been suggested an extra £2bn will be needed immediately – on top of the £14bn that is already spent by councils – although this would increase in time with the ageing population.

The Treasury is known to have doubts whether more money can be found in the current financial climate.

Speaking before the publication of the report, Health Secretary Andrew Lansley said ministers were likely to give it a “positive response” and “treat it as the basis for engagement”.

However, he said the level of any cap, how it would paid for and the threshold for means testing were among a “range of issues that need to be resolved”.

Michelle Mitchell, of Age UK, said action was long overdue: “Social care is at crisis point. Vulnerable people are going without care and that means their conditions are worsening and they are ending up in hospital and costing the government more. We cannot go on as we are doing.”

Age UK was one of 26 charities which wrote to the Sunday Telegraph calling for politicians to hold cross-party talks on the issue and “not let reform fall off the table for another generation”.

Any overhaul of the system would take about five years to introduce.

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

Graffiti-proof

Spray canGraffiti may be art to some, but it is seen as a nuisance by others

A landmark sculpture project is at risk because of spiralling costs – including the budget for keeping it graffiti-free. How do you protect public artworks from vandals?

It was meant to be a towering monument – a 50m (164ft) white horse in the fields of Kent greeting Eurostar passengers to England. But now sculptor Mark Wallinger’s so-called “Angel of the South” project is at risk because of rising costs.

The price tag for the Ebbsfleet Landmark Project (ELP) has gone up from £2m to £12m, according to reports, with the budget for removing graffiti over 80 years part of the revised bill.

Keeping outdoor artworks like sculptures and murals unsullied by vandalism is a constant preoccupation of local authorities and the hygiene industry. Various types of anti-graffiti protective coatings are commercially available and “target-hardening” – making landmarks more difficult to vandalise – is also an option.

The proposed white horse sculpture designed by artist Mark WallingerThe proposed white horse sculpture designed by artist Mark Wallinger

However, some experts argue that a more effective method is to ensure communities feel ownership of their public art.

The authorities responsible for the proposed white horse have good reason to be wary of graffiti. There are many examples of much-loved outdoor artworks falling victim to vandalism.

The Superlambanana sculpture in Liverpool, though it came to be widely cherished in the city, was an occasional victim to graffiti during its early days on display.

In 2010, a newly-restored statue commemorating the struggles for a living wage by striking miners in Tonypandy, South Wales, was defaced with silver paint, causing fury in the community.

And even the apparently impenetrable bronze bull, nicknamed “Bully”, which stands outside Birmingham’s Bullring centre, was vandalised with an ice skate in 2006.

There are, however, technical solutions for protecting such landmarks.

The answerProtective coating that can be used to guard against vandals”Target-hardening” techniques, such as lighting, gates fences and anti-climb devices, can deter graffitiBut some experts argue that community engagement is the most important factor

According to the Anti-Graffiti Association (AGA), there are two types of protective coating that can be used to guard against vandals.

The first are sacrificial coatings, which are designed be removed with steam or hot water, taking away any paint or ink on the surface along with it.

By contrast, permanent coatings stay in place for years and allow the graffiti to be wiped off them.

The AGA says objects and buildings can also be protected using “target-hardening” techniques, such as lighting, gates fences and anti-climb devices.

However, such techniques would tend to defeat the one of the key objects of public art – that is, to be accessible to the public.

WHO, WHAT, WHY?

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A part of BBC News Magazine, Who, What, Why? aims to answer questions behind the headlines

As a result, Prof Lorraine Gamman, of Central Saint Martins School of Art and Design and director of the Design Against Crime research centre, argues that “top-down” initiatives generally fail when it comes to encouraging people to preserve and treasure works of art.

Instead, she says, community-led initiatives are usually far more effective at ensuring that public art is protected by self-policing.

“There are lots of things you can do but ultimately it’s about bringing a sense of ownership to the community,” she says.

“If you achieve that, the people on the street are the eyes and the ears protecting it.”

And, indeed, she says that local people will often become protective of the very graffiti that others might see as a menace.

“Ask the community what they want,” she adds. “In Bristol, they protect their Banksys.”

Jill Partington, spokesperson for the anti-litter campaign Keep Britain Tidy, concurred with this community perspective.

“When a community respects a piece of public art it is much less likely to be vandalised,” she added.

“Prevention is better than cure and an awareness project about the local significance of the art, might have a greater impact on its protection in the long-term.”

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

Nato fends off concern over Libya

Russian Foreign Minister Sergei Lavrov (L) shakes hands with Nato chief Anders Fogh Rasmussen as they meet during the Russia-Nato Council in the Black Sea resort of Sochi, on MondayRussia says it wants to use the talks with Nato as an opportunity to foster co-operation

Russia and Nato are meeting for talks in the southern Russian resort of Sochi, with the crisis in Libya a key item on the agenda.

Russian Foreign Minister Sergei Lavrov said Russia wanted to use the mechanisms of the council as “a catalyst for co-operation”.

President Dmitry Medvedev will meet Nato chief Anders Fogh Rasmussen.

Russia is a critic of Nato’s campaign in Libya, giving these routine talks special significance.

South African President Jacob Zuma will also attend, as he continues to spearhead mediation efforts between the rebels and the government in Tripoli after rebels rejected an African Union initiative on Sunday.

South Africa has played a leading role in efforts to broker talks, and Mr Zuma is set to meet President Medvedev, and possibly Mr Fogh Rasmussen, on the sidelines of the meeting.

Missile defence also remains an issue on the talks agenda, with Nato eager to persuade Moscow that its plans for limited defences against missile attack do not represent any threat to the credibility of Russia’s own nuclear deterrent, say correspondents.

This event is is one of regular Nato-Russia Council meetings, but it has gained more than usual significance because of the continuing fighting – and bombing – in Libya, says the BBC’s Daniel Sandford in Moscow.

Russia has criticised the bombing of Libya, saying the mission has lost its original focus on protecting civilians, and is now about removing the Libyan government.

In a statement it said the only way to stabilise the situation in Libya was an “immediate ceasefire” and talks “with support, but not interference, from outside the country”.

Libyan relax on the beach in the rebel-held Benghazi, Libya, on SaturdayThe fate of Col Gaddafi’s regime is a key sticking point in talks on the future of Libya

On Sunday Libyan rebels rejected an AU peace initiative, with rebel spokesman Abdel Hafiz Ghoga saying: “We have rejected it. It did not include the departure of [Libyan leader Col Muammar] Gaddafi, his sons and his inner circle.”

In an apparent significant softening of policy, TNC head Mustafa Abdul Jalil later said Col Gaddafi would be welcome to live out his retirement inside Libya as long as he gave up all power.

“As a peaceful solution, we offered that he can resign and order his soldiers to withdraw from their barracks and positions, and then he can decide either to stay in Libya or abroad,” he told Reuters news agency.

“If he desires to stay in Libya, we will determine the place and it will be under international supervision. And there will be international supervision of all his movements.”

However, this concession was later rejected by Mr Ghoga, who said the TNC chief had been expressing a “personal view” and the idea had not been put forward in negotiations.

“Let Gaddafi show us one place in Libya where he hasn’t harmed, tortured or killed people and he could stay there, but this place doesn’t exist,” Mr Ghoga said, according to Associated Press news agency.

The apparent contradiction in the statements of the two men has fuelled speculation of a possible rift in the rebel leadership.

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

Boy dies fetching ball from track

Dale FlecknerDale Fleckner was one of five siblings

A teenage boy has died while trying to retrieve a football from a railway line in Merseyside.

The boy went on to the tracks between Rock Ferry and Green Lane stations in Wirral at about 1815 BST on Sunday.

British Transport Police (BTP) said that Dale Fleckner, 16, was electrocuted by the third rail which runs between the tracks.

He was taken by ambulance to Arrowe Park Hospital where he was pronounced dead.

A BTP spokesman said: “Our thoughts are with his family and friends at this difficult time.

“This incident highlights the very real danger posed by the railway and should act as a warning to others to never trespass onto the tracks.

“We understand that it can be tempting to quickly run across tracks as a shortcut or to try to retrieve possessions, but there is never a good reason for trespassing on the railway.”

One of five siblings, Dale was a pupil at University Academy South, Birkenhead, which was formerly Rock Ferry High School.

A talented footballer he was going to study sport at technical college.

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Score revamp for early Hitchcocks

Scene from The Lodger: A Story of the London FogThe Lodger: A Story of the London Fog was Hitchcock’s third feature and first suspense thriller
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Rarely seen, silent Alfred Hitchcock films are to have new orchestral scores composed for them as part of screenings for the London 2012 Festival.

Nitin Sawhney is among several British composers who have been commissioned to create scores for the films which are being restored by the BFI.

Tansy Davies and Daniel Cohen will also compose new scores for the special events next summer.

It will be followed in the autumn by a Hitchcock retrospective at the BFI.

The scores will follow on from the works of American composer Bernard Herrmann, who was best known for his collaborations with Hitchcock on films including Psycho, North by Northwest and Vertigo.

Sawhney will write the music for Hitchcock’s first suspense thriller, the 1926 film The Lodger: A Story of the London Fog, to be performed with the London Symphony Orchestra.

The film tells of a mysterious lodger who is suspected of being a serial killer terrorising fog-shrouded London.

Sawhney said: “Bernard Herrmann is one of my great musical heroes.

“It would be honour enough to follow in Herrmann’s footsteps but to actually score a film that precedes his musical genius is a wonderful opportunity for creative imagination and invention.”

Young composer Cohen will create a new score for Hitchcock’s first film, 1925’s The Pleasure Garden, about the diverging lives of two dancers.

Nitin Sawhney Courtesy of Justin SutcliffeNitin Sawhney said it was a ‘dream project’ to compose the new score

The rarely seen films are being restored by the BFI National Archive to be shown on the big screen again.

“The BFI is thrilled to be able to bring Hitchcock’s early films to the London 2012 Festival,” said Heather Stewart, creative director of the BFI programme.

“They are the foundation of his whole body of work and new audiences will be able to enjoy them for the first time ever in all their restored glory and with new scores from an incredible mix of British musical talent.”

The London 2012 Festival marks the culmination of the four-year Cultural Olympiad as part of London’s 2012 Olympics. The festival brings leading artists from all over the world together to inspire creativity across all forms of culture from 21 June – 9 September.

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Queen’s expenditure falls £1.8m

 
The QueenThe way the Queen receives funding from the government is set to change
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The cost to taxpayers of funding the Queen’s spending has dropped by £1.8m, Buckingham Palace says.

The Queen’s official expenditure for 2010-11 dropped to £32.1m from £33.9m in the previous fiscal year.

The figures have not been calculated in the same way as in previous years because of planned changes to funding.

In the past, the monarch received money from three different government departments, but now funds will be tied to the revenue of the Crown Estate.

The Buckingham Palace figures include the cost of the Civil List paid to the monarch; the amount spent on maintenance of the royal palaces and the cost of most royal travel.

But the amount it costs the Queen to carry out official government duties such as the administration of the honours system, state visits to and by the Queen as well as the employment of orderlies and equerries, is excluded from the total as these costs are met directly by government departments and the Crown Estate.

The latest report shows the cost of travel was £6m for the last financial year. In 2009-10, travel cost £3.9m.

The report also shows the cost of property services fell from £15.4m to £11.9m

The Sovereign Grant Bill, approved by MPs last week, will introduce a single grant given to the monarch based on 15% of the Crown Estate’s revenue from two years previously.

Graph showing civil list expenditure

Starting from 2013-14, this funding arrangement will last seven years before it is reviewed.

Currently the monarchy receives funding from three different areas: funds for the Civil List come from the Treasury; travel is paid via a grant from the Department for Transport; and the maintenance of royal palaces and communications, comes from the Department for Culture, Media and Sport’s budget.

The budget for 2012 has already been set at £30m with an extra £1m for costs incurred for the diamond jubilee celebrations.

Sir Alan Reid, keeper of the privy purse, said: “The Queen is very keen that the royal household should continue to reduce its expenditure in line with public expenditure reductions.

“The decrease in expenditure is due mainly to increased income generation, the deferral of property maintenance expenditure and the implementation of a pay freeze.

“This pay freeze will continue on to this year.”

Anti-monarchy group Republic said Buckingham Palace should reveal the “true cost” of having a royal family.

Spokesperson Graham Smith said the monarchy cost over £200m each year and that proper scrutiny and honesty was “well overdue”.

“The monarchy is hugely expensive, it wastes taxpayers’ money every week, it is not properly accountable and it continues to demand more. This is not an issue that can be swept to one side by cheap spin and headlines,” he said.

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Data on late abortions released

high courtGovernment lost the battle over abortion figures at the High Court
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The government has published data on the number of late abortions carried out in England and Wales, after the High Court ordered it to do so.

The ProLife Alliance anti-abortion group has been fighting for details of the medical reasons for abortions over 24 weeks to be released since 2005.

But the government had said it had feared identifying women concerned, because of the low numbers of cases.

The data shows there were 147 late abortions carried out last year.

Abortion on “social” grounds is only legal in the first 24 weeks of pregnancy.

But the 1967 Abortion Act makes it legal to abort a foetus right up to birth if there is a substantial risk of “serious” physical or mental abnormality.

Up until 2003 the Department of Health published statistics on these late abortions, even when only one or two cases were involved.

But the publication of the figures in 2002 sparked an outcry when it became clear that one termination was carried out on a baby with a cleft lip and palate.

Critics argued that a relatively simple surgical procedure could now repair cleft palates, and anti-abortion groups argued the rules were being flouted to weed out “less than perfect” babies.

A police investigation was launched after a complaint by the Reverend Joanna Jepson, who was born with a jaw deformity.

By 2004, using information now in the public domain, journalists discovered the identity of one of the doctors involved in the abortion.

That led to fears that the identity of the patient could also be revealed.

The Department of Health had already decided in 2003 it would no longer reveal detailed information on late abortions where the number of terminations involving certain medical conditions was less than 10.

The decision affected England and Wales, but it is also the practice in Scotland; the Abortion Act does not apply in Northern Ireland.

In 2005 the ProLife Alliance, which opposes abortion, used the Freedom of Information Act to request the full statistics on abortions for 2003.

When the Department of Health refused, the Information Commissioner backed the PLA request, as did the Information Tribunal.

Eventually the case led to the High Court where the Department of Health had been trying to get the Information Tribunal decision overturned.

After the latest hearing went against it in April, the department decided not to take the case any further.

Sixty-six of the late abortions carried out in 2010 were linked to problems in the nervous system, such as spina bifida.

No late abortions were carried out for cleft lip and palate.

However seven were carried out before 24 weeks for this reason.

The statistics released by the department also show eight terminations related to musculoskeletal problems, which could include club foot.

A total of 29 abortions were for chromosomal problems, including 10 for Down’s syndrome and 10 for Edwards’ syndrome.

The department has also released data on abortions for girls under 16.

There were 3,718 abortions in under-16s, including two for girls aged 12 in 2010.

The figures also reveal that an 11-year-old had an abortion in 2008. This was also the case in 2005 and 2002.

Julia Millington of the ProLife Alliance said: “This is a great victory for transparency and freedom of speech and we are delighted that full information about the justification for late abortions is now being made available in the same detail as it was in 2001.”

But Ann Furedi, chief executive of the British Pregnancy Advisory Service which provides abortions, said: “The publication of these statistics after a campaign by the anti-abortion lobby reveals little more than their own vindictiveness.”

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

Maths powers Google bid strategy

The Sun, AFP/GettyGoogle’s bids drew on different numbers such as the distance to the Sun
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Google’s bids for a pool of wireless patents were based on mathematical constants, say sources.

The portfolio of 6,000 patents was auctioned to realise some value from the assets of bankrupt telecoms firm Nortel.

During the sale, Google’s bids were based on pi, other constants and the distance between the Earth and the Sun.

Google lost the auction as a consortium including Apple and Microsoft made the winning bid of $4.5bn (£2.8bn).

“Google was bidding with numbers that were not even numbers,” a source involved in the auction told the Reuters news agency.

The sale of the patent portfolio started as a five-way scrap between two separate consortia and individual firms including Google and Intel.

Initial estimates suggested the portfolio would attract around $2bn (£1.24bn) but the four days of intense bidding saw the total rise sharply.

During its bids, Google picked numbers including Brun’s constant and Meissel-Mertens constant that were said to have “puzzled” others involved in the auction. When bids from rivals hit $3bn, Google reportedly bid pi, $3.14159bn, to up the ante.

“Either they were supremely confident or they were bored,” Reuters’ source said.

It is not clear what inspired Google to draw on obscure mathematics for its bids. However, Google co-founder Sergey Brin is widely acknowledged to be a maths prodigy and the bids may reveal his influence.

As the bids got bigger some firms dropped out and others became partners to pool their resources. From going it alone, Apple joined a consortium that included Microsoft, Research In Motion and Sony.

“It did become clear to us very quickly that this was something that a bunch of big companies with humongous balance sheets had decided was strategic for them,” said John Amster, Chief Executive of RPX that led one consortium. The RPX-led group dropped out as the price climbed.

Ultimately the portfolio was being fought over by two groups: Google and Intel on one side and the Microsoft/Apple-led consortium on the other.

Google’s failure to secure control of the patents could cost it dear in the future, warned intellectual property analyst Florian Mueller.

Giant Android, APAndroid handset makers may face higher licence fees in the future

“I would have thought they would seize this once in a lifetime opportunity to become a new wireless patent player,” Mr Mueller told the BBC. “It’s not going to have, any time soon, a comparable opportunity to acquire such a diversity of relevant patents in a single purchase.”

Currently Google had about 700 patents in its mobile portfolio, he said, many of which relate to using handsets to serve its core competences such as search.

By contrast, he said, the Nortel patents relate to future technologies that will make mobile networks faster and handsets more powerful.

Controlling that, he pointed out, would be very useful as a bargaining chip with rivals. Owning the patents could also ease the burden on firms making Android devices as they would have fewer licence fees to pay.

Use of Android technology from Google is free provided handset makers pipe traffic back to the search giant so it can make money with adverts.

However, the numbers of companies asking for cash to use the non-Google developed technologies found in Android phones was rising, he said.

For instance, Microsoft has announced licensing deals with many Android phone makers including General Dynamics and HTC.

With the control of the patents passing to a consortium that includes firms that are Google’s bitter rivals in the mobile phone world, licence fees could increase.

“It’s reducing the claim that Android is free to an absurdity,” said Mr Mueller.

Google has not issued a formal statement on the auction outcome but has reportedly called it “disappointing”.

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Actress Anna Massey dies aged 73

Anna MasseyMassey appeared in BBC Radio 4 series Daunt and Dervish

Actress Anna Massey, who starred in a string of screen dramas, has died at the age of 73, her agent has confirmed.

Massey won many awards during her acting career, including a Bafta for her portrayal of a lonely spinster in a 1986 TV adaptation of Hotel du Lac.

The star also appeared in the film adaptation of AS Byatt’s Possession, opposite Gwyneth Paltrow and was in Alfred Hitchcock’s 1972 movie Frenzy.

She was awarded a CBE for services to acting in 2004.

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

Star selected as Scotland-England border landmark

Gretna landmark designThree different designs are in the running to mark the Scotland-England border
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A judging panel is due to announce the winning design for a landmark sculpture on the Scotland-England border.

Three international contenders have made it to the final stage of the selection process for the Border Crossing project at Gretna.

The proposed structures range in height from 50m (164ft) to 100m (328ft).

Designer Cecil Balmond, American artist Ned Kahn and Chris Wilkinson, of Wilkinson Eyre Architects, are in the running for the project.

Judges met last month to select the winning design for the scheme – entitled the Great Unknown – but delayed making an announcement of their verdict.

Full details of the Scotland-England border project contenders

Gretna landmark design

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The selected design will be further developed over the summer before being submitted for planning permission.

Project manager Carol Hogarth said she believed all three options said “something important about Dumfries and Galloway and Scotland”.

The winner of the project is to be announced at a special presentation in Gretna.

Sri Lanka-born Mr Balmond’s works include the Arcelor Mittal Orbit tower, the UK’s largest public art sculpture, designed in collaboration with Anish Kapoor for London 2012.

Environmental artist Mr Kahn has collaborated with architects and designers on a number of art projects all over the world.

London-based Wilkinson Eyre Architects enjoyed back-to-back success in the RIBA Stirling Prize for Architecture for the Magna Project in 2001 and the Gateshead Millennium Bridge in 2002.

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Killer admits Japan bathtub death

Lindsay Ann Hawker Lindsay Ann Hawker’s body was found buried in sand in a bathtub in a flat near Tokyo in March 2007

A Japanese man has admitted raping and killing a British teacher whose body was found buried in a bathtub.

Tatsuya Ichihashi, 32, is accused of murdering Lindsay Ann Hawker, 22, from Brandon near Coventry.

Her body was found in a sand-filled tub at the defendant’s home east of Tokyo in March 2007.

At the opening of his trial Mr Ichihashi admitted raping Miss Hawker and causing her death but said he did not intend to kill her.

Miss Hawker taught Mr Ichihashi English at a private language school in the city of Chiba.

After her death, Mr Ichihashi, published a book in which he confessed to the killing and described how how he spent two-and-a-half years on the run and underwent plastic surgery to change his appearance.

He was eventually arrested in the city of Osaka in November 2009.

Miss Hawker’s parents, Bill and Julia, are attending the trial at Chiba District Court and under the country’s legal system they will be entitled to question the defendant but at the discretion of the court.

In a statement read by Mr Hawker when the family left England for the trial, he said: “We’re hoping to get justice for our daughter.

“That has always been our only aim.”

A verdict is expected before the end of the month.

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

Europe insurers pass stress tests

La Defense in ParisThe French insurance industry owns some 9bn euros in Greek debts

A stress test of Europe’s biggest insurers has found them to be “robust” despite exposure to Greek debt.

More than 90% of the 221 firms examined met minimum solvency standards even in the most adverse scenario considered.

However, the exercise identified key vulnerabilities, including exposure to sovereign debts, such as Greece’s, and natural catastrophes.

The tests were done by a newly-created regulator, the European Insurance and Occupational Pensions Authority.

None of the insurance companies – which comprise at least 50% of the market in each country – was identified.

Insurance companies have large exposures to Greek and other troubled European government debt.

Not only have the firms invested in Greek bonds, they are also thought to have written insurance on Greek credit risk in the form of credit derivatives.

French insurers own some 9bn euros (£8bn, $13bn) in Greek government debt.

Meanwhile, German insurers have been asked by their government to participate in a plan to relend Greek debts coming due in the next two years, with Allianz having agreed to provide 300m euros.

Man fixing Allianz signGerman insurer Allianz has offered to contribute 300m euros towards a new bail-out of Greece

Besides sovereign debt exposure, the risks facing the insurance industry included:

big losses on shares and other investmentsa sharp rise in interest ratesa sharp rise in inflation, meaning the value of insurance claims outstrips premium paymentsmajor natural disastersa failure of the reinsurance market, which insurers rely on to share losses

It is second such set of stress tests for insurance companies, which shadow a similar exercise being carried out on the big banks by the European Banking Authority.

However, unlike the banks being tested, insurers that fail the test will not yet be formally required to top up the capital they hold to absorb future losses.

The latest tests for insurers come at a time when they are still fleshing out a new set of Europe-wide rules for the industry.

The Association of British Insurers has called the stress tests a “distraction from vital regulatory change”.

“The UK insurance industry is currently under great pressure to implement an enormously complex regulatory framework,” said the ABI’s Peter Vipond.

“Rather than demand stress tests on the basis of a yet to be agreed framework, it would be better to focus on finalising the proposed rules and helping the industry put the infrastructure in place to make them work by 2013,” he said.

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VIDEO: Reagan statue unveiled in London

A statue of former US President Ronald Reagan has been unveiled at a ceremony outside the American embassy in central London.

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India MLAs stage mass resignation

File picture of pro-Telangana protestsViolent protests have taken place in Andhra Pradesh
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Dozens of lawmakers in India’s Andhra Pradesh state have resigned over their demand for the creation of a new state in southern India called Telangana.

So far 74 legislators from the ruling Congress and opposition Telugu Desam Party (TDP) have quit and more resignations are threatened.

Andhra Pradesh saw violent protests for and against the proposal last year.

Correspondents say the resignations could destabilise the Congress government in the southern state.

A minority government could lead to fresh elections there or direct rule from the centre.

An official report on the proposal for Telangana set out a range of options, which included maintaining the status quo, granting greater powers for Telangana within Andhra Pradesh and full-blown statehood.

The BBC’s Soutik Biswas in Delhi says the resignations, cutting across party lines, will plunge Andhra Pradesh into a fresh round of unrest.

Telangana

Map

Population of 40 millionComprises 10 districts of Andhra Pradesh, including city of HyderabadLandlocked, predominantly agricultural areaOne of the most under-developed regions in India50-year campaign for separate statusMore than 400 people died in 1969 crackdown

With a population of 40 million, the proposed Telangana state comprises 10 of Andhra Pradesh’s 23 districts, including the state capital and India’s sixth most populous city, Hyderabad.

All the legislators who have resigned belong to the Telangana region – there are 117 lawmakers in the 294-seat assembly who belong to the area.

And the party leading the demand for statehood, the Telangana Rashtra Samiti (TRS), is sticking to its position.

Opponents of the move are unhappy that Hyderabad, home to many major information technology and pharmaceutical companies, could become Telangana’s new capital.

The final decision on a new state lies with the Indian parliament. But the state assembly must also pass a resolution approving its creation.

Deep divisions have emerged over the Telangana issue in the past year.

In December 2009, India’s Congress party-led government promised that the new state would be formed but later said more talks were needed.

The announcement prompted widespread protests in the state, and a student committed suicide in support of the formation of Telangana.

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