The Bank of England is concerned that the UK's banking system is heading for a third wave of crisis that could snuff out fragile signs of recovery in the economy.
On Thursday the Bank surprised the City by announcing that it would pump an extra £50bn of new money into the economy despite recent stockmarket rallies.
Now the Guardian has learned that this increase in quantitative easing was driven by fears in Threadneedle Street that the credit crunch is still sucking the life out of the British economy and the banking sector remains in deep trouble.
The new mood of caution chimes with comments from business leaders yesterday, who warned that apparent green shoots in the economy had shallow roots.
Richard Lambert, director general of the CBI, said: "The fact is that for all the injections of taxpayers' money, the credit markets are still not working properly."
Bank of England officials are concerned that big banks now supported by the taxpayer, such as Royal Bank of Scotland and Lloyds Banking Group, are struggling to increase lending volumes, as they had promised in return for help from the government.
The governor, Mervyn King, and several other members of the Bank of England's monetary policy committee are said to be unconvinced by talk of green shoots that has helped propel the FTSE 100 share index up by more than 20% over the last month.
Fears of a false dawn echo the mood at the beginning of the year, when apparent recovery in financial markets was wiped out by a second wave of crisis led by RBS and Lloyds.
This week both banks again warned of sharp increases in bad loans to British business customers. RBS said yesterday it was seeing little sign of green shoots.
Continued weakness at these banks may prevent the increase in lending that ministers are desperate to see, and dash hopes of a pre-election recovery for Labour.
The Bank of England is also worried that continued stresses in the global financial system will suck money out of the UK as cash-starved international banks bring money back home. Foreign banks are thought to be withdrawing funds from Britain once loans expire, rather than roll them over.
In return for support from the government, both RBS and Lloyds had pledged to increase lending to homeowners and businesses to compensate for declining foreign lending. Instead Stephen Hester, chief executive of RBS, said yesterday that demands for loans had contracted as customers "quite properly" try to reduce their borrowings as the recession bites.
King presents the MPC's latest quarterly inflation report next Wednesday and speculation was rife in the Square Mile last night that the report would contain gloomy forecasts for economic growth and inflation, which will probably be projected as being below its 2% target in two years' time, even though it is currently at 2.9%.
Last year King was criticised by some experts for failing to cut interest rates fast enough as the economy slid into recession. But from September, when US investment bank Lehman Brothers collapsed, he led the MPC in slashing rates to an all-time low of just 0.5% and embarked on the unconventional quantitative easing in March, a policy the European Central Bank said on Thursday said it would follow.
Poor lending decisions by HBOS, now part of Lloyds, and RBS, along with the rapid deterioration in the economy, mean that the two banks in which the government has major stakes could alone account for £25bn of bad debts by the end of the year.
Both banks believe these losses will count towards the "first loss" they must bear before their insurance – through the government's asset protection scheme – kicks in.
The extent of the rise in bad debts has surprised some commentators who now believe the taxpayer could be on the hook for losses under the asset protection scheme faster than first expected.
There has been some evidence of a small increase in mortgage lending in Britain, but it is not nearly strong enough to prevent house prices, which are down nearly a quarter from their 2007 peak, falling further. And unemployment is expected to continue rising well into next year, something that is likely to restrain consumer spending.
Many economists have been encouraged by some better figures on consumer confidence and forward-looking surveys into thinking that the 1.9% contraction in the economy in the first quarter of the year – the worst for three decades – will not be as severe in the second quarter. But they say that this only marks a slower pace of contraction, not a rapid return to growth.
Few share the chancellor's belief that the economy will recover strongly in 2009, and nor does the Bank of England.
Friday, May 8, 2009
Police called in as fresh expenses leaks embarrass MPs
The parliamentary authorities reacted to damaging revelations of cabinet and junior ministers cynically exploiting Commons expenses rules by calling in the police to investigate how the details were leaked and by whom.
The involvement of the police, and the prospect of a full-scale criminal inquiry, came as fresh disclosures emerged of expenses claims made by middle-ranking ministers for items as trivial as a razor and a kettle.
One MP implicated in the latest allegations told the Guardian that he believed a mole was still active operating inside parliament and feeding material to the Daily Telegraph. Others said the paper was guilty of trading in stolen property, and could be subject of a swingeing court fine running into millions.
Sir Stuart Bell, a member of the Commons estimates committee, claimed that there had been a breach of the Data Protection Act.
Downing Street believes the police investigation may backfire because of the huge public anger at what is seen as greed and fraud by MPs.
Tonight it emerged that the employment minister, Tony McNulty, could face a police investigation after a complaint was made about expenses he had been claiming under the second homes allowance. In March, it emerged that McNulty had claimed about £60,000 from Commons allowances since 2002, towards maintaining a house where his parents lived.
The Daily Telegraph is expected to continue revealing fresh detailstomorrow, this time focusing on a clutch of middle-ranking ministers, including the Home Office minister Phil Woolas, and the health ministers Phil Hope and Ben Bradshaw.
Hope said he had made a mistake in wrongly claiming for a razor. "In order to represent my constituents effectively I have somewhere to live - in my family home - near Corby and I have somewhere to live in London to carry out my duties in parliament, for which these costs have been incurred."
He added: "In all my claims for the costs of the accommodation in London I have acted with the full approval of the fees office and the claims are entirely in line with the rules of parliament. Any new fittings were brought to replace dilapidated or broken fittings in my flat in London, any household items were bought to make the flat usable, I've got a communal garden for recreational use around my flat. I made one claim for a razor. I didn't realise it was inadmissible. It was pointed out and I withdrew it."
Woolas said that the Telegraph had made a mistake in the allegations it had put to him. He said that the paper wrongly assumed that receipts submitted by him were his expenses claim. In fact he regularly submitted full receipts - until asked not to do to by the fees office - and then claimed for far less.
The paper put to Woolas that he had claimed for clothes on behalf of his wife, plus children's nappies and comics. They were on receipts submitted, but not claimed on, by the minister. "I am a victim of too much honesty in putting in the full receipts," he said. Woolas did claim for a kettle in 2006.
Labour MPs believe that a mole may be feeding sensitive personal information to the Daily Telegraph. One MP raised his concerns with the Commons authorities, which helps explain why the police were called in to investigate.
The MP acted after his office raised a series of questions with the fees office about expense claims dating back to 2004. Within an hour of this conversation, the MP's staff were contacted by the Daily Telegraph which then asked questions covering exactly the same area. The MP told the Guardian: "It was uncanny. There is something horrible going on. I have never been so frightened. What is happening is disgusting."
Lord Mandelson, the business secretary, accused the Telegraph of running a dishonest political campaign by focusing on the government and delaying the publication of shadow cabinet expenses claims until Monday.
The Commons members estimates committee will meet on Monday to decide how to respond to the leak and the serious damage being done to the reputation of parliament. It is certain to bring forward publication of the past five years of claims from the planned date in July.
A series of ministers took to the airwaves earlier today to defend their conduct. Gordon Brown, aware of the damage being inflicted on his battered government, insisted he had been trying to reform the expenses rules and admitted that "the system doesn't work."
The allegations against the cabinet ranged from the bizarre to what looked like a systematic attempt to bend the rules for personal gain. They included:
• Gordon Brown, who paid his brother, Andrew, £6,577 over 26 months between 2004 and 2006 for cleaning services at his London flat.
• Jack Straw, the justice secretary, who claimed for the full rate of council tax on his home in his Blackburn constituency, despite receiving a 50% discount from his local authority. Straw discovered the mistake and paid back the money.
• A series of ministers - Hazel Blears, Geoff Hoon and Alistair Darling - changed the status of their London and constituency homes, prompting claims that they were attempting to maximise their claims under the additional costs allowance which is used to subsidise second homes. Blears made claims on three properties in the space of one year.
David Cameron, bracing himself for revelations about his own party, said every MP would have to explain themselves to their constituents. He said: "I completely understand how angry the public are about this and we desperately need change.
"We've got to radically reduce the number of things that MPs can claim for such as barbeques and patio heaters.
The Liberal Democrat leader Nick Clegg said the issue "affects all politicians of all parties and no one comes out of this smelling of roses".
The Speaker, Michael Martin, will make a Commons statement on Monday. It is thought that only 120 MPs have so far examined their "raw" receipts and could go ahead with publication straight away.
The MPs who have still not examined their expenses fully may be given another week before pressing ahead with publication.
The fees office set up a weekend hotline to advise panic-stricken MPs who are worried about how their claims covering the five years back to 2004 will look to their constituents.
The involvement of the police, and the prospect of a full-scale criminal inquiry, came as fresh disclosures emerged of expenses claims made by middle-ranking ministers for items as trivial as a razor and a kettle.
One MP implicated in the latest allegations told the Guardian that he believed a mole was still active operating inside parliament and feeding material to the Daily Telegraph. Others said the paper was guilty of trading in stolen property, and could be subject of a swingeing court fine running into millions.
Sir Stuart Bell, a member of the Commons estimates committee, claimed that there had been a breach of the Data Protection Act.
Downing Street believes the police investigation may backfire because of the huge public anger at what is seen as greed and fraud by MPs.
Tonight it emerged that the employment minister, Tony McNulty, could face a police investigation after a complaint was made about expenses he had been claiming under the second homes allowance. In March, it emerged that McNulty had claimed about £60,000 from Commons allowances since 2002, towards maintaining a house where his parents lived.
The Daily Telegraph is expected to continue revealing fresh detailstomorrow, this time focusing on a clutch of middle-ranking ministers, including the Home Office minister Phil Woolas, and the health ministers Phil Hope and Ben Bradshaw.
Hope said he had made a mistake in wrongly claiming for a razor. "In order to represent my constituents effectively I have somewhere to live - in my family home - near Corby and I have somewhere to live in London to carry out my duties in parliament, for which these costs have been incurred."
He added: "In all my claims for the costs of the accommodation in London I have acted with the full approval of the fees office and the claims are entirely in line with the rules of parliament. Any new fittings were brought to replace dilapidated or broken fittings in my flat in London, any household items were bought to make the flat usable, I've got a communal garden for recreational use around my flat. I made one claim for a razor. I didn't realise it was inadmissible. It was pointed out and I withdrew it."
Woolas said that the Telegraph had made a mistake in the allegations it had put to him. He said that the paper wrongly assumed that receipts submitted by him were his expenses claim. In fact he regularly submitted full receipts - until asked not to do to by the fees office - and then claimed for far less.
The paper put to Woolas that he had claimed for clothes on behalf of his wife, plus children's nappies and comics. They were on receipts submitted, but not claimed on, by the minister. "I am a victim of too much honesty in putting in the full receipts," he said. Woolas did claim for a kettle in 2006.
Labour MPs believe that a mole may be feeding sensitive personal information to the Daily Telegraph. One MP raised his concerns with the Commons authorities, which helps explain why the police were called in to investigate.
The MP acted after his office raised a series of questions with the fees office about expense claims dating back to 2004. Within an hour of this conversation, the MP's staff were contacted by the Daily Telegraph which then asked questions covering exactly the same area. The MP told the Guardian: "It was uncanny. There is something horrible going on. I have never been so frightened. What is happening is disgusting."
Lord Mandelson, the business secretary, accused the Telegraph of running a dishonest political campaign by focusing on the government and delaying the publication of shadow cabinet expenses claims until Monday.
The Commons members estimates committee will meet on Monday to decide how to respond to the leak and the serious damage being done to the reputation of parliament. It is certain to bring forward publication of the past five years of claims from the planned date in July.
A series of ministers took to the airwaves earlier today to defend their conduct. Gordon Brown, aware of the damage being inflicted on his battered government, insisted he had been trying to reform the expenses rules and admitted that "the system doesn't work."
The allegations against the cabinet ranged from the bizarre to what looked like a systematic attempt to bend the rules for personal gain. They included:
• Gordon Brown, who paid his brother, Andrew, £6,577 over 26 months between 2004 and 2006 for cleaning services at his London flat.
• Jack Straw, the justice secretary, who claimed for the full rate of council tax on his home in his Blackburn constituency, despite receiving a 50% discount from his local authority. Straw discovered the mistake and paid back the money.
• A series of ministers - Hazel Blears, Geoff Hoon and Alistair Darling - changed the status of their London and constituency homes, prompting claims that they were attempting to maximise their claims under the additional costs allowance which is used to subsidise second homes. Blears made claims on three properties in the space of one year.
David Cameron, bracing himself for revelations about his own party, said every MP would have to explain themselves to their constituents. He said: "I completely understand how angry the public are about this and we desperately need change.
"We've got to radically reduce the number of things that MPs can claim for such as barbeques and patio heaters.
The Liberal Democrat leader Nick Clegg said the issue "affects all politicians of all parties and no one comes out of this smelling of roses".
The Speaker, Michael Martin, will make a Commons statement on Monday. It is thought that only 120 MPs have so far examined their "raw" receipts and could go ahead with publication straight away.
The MPs who have still not examined their expenses fully may be given another week before pressing ahead with publication.
The fees office set up a weekend hotline to advise panic-stricken MPs who are worried about how their claims covering the five years back to 2004 will look to their constituents.
Nurses lack decontamination areas
Some nurses are having to decontaminate vital equipment in hospital bathrooms because they have no access to a dedicated cleaning room, a survey says.
A Royal College of Nursing (RCN) survey of 2,000 nurses found 37% had no access to a room for cleaning equipment.
Of those, a third have had to use a bathroom as an alternative.
The RCN described the results as "shocking", but the Department of Health said it was for individual trusts to make proper arrangements.
Dr Peter Carter, RCN chief executive and general secretary, said: "Having the time and space to clean and then store essential everyday hospital equipment such as IV stands, commodes and patient cushions is crucial in keeping patients safe from dangerous infections.
"It's shocking that some nurses have no choice but to store equipment in hospital bathrooms.
"People need to recognise that fighting infection is about much more than just hand washing."
The RCN survey also found that more than one third (34%) of nurses who have responsibility for decontaminating patient equipment have never received any formal training in how to do it.
Four out of 10 nurses said their organisation did not provide cleaning services 24 hours a day.
Training budgets
Dr Carter added: "Every trust should protect training budgets for nurses and make sure that every nurse in the country is given the opportunity to update their infection prevention training.
"Every nurse should have access to round-the-clock cleaning services.
"Overall, infection rates have been going down over the past couple of years, but that's from a very high point indeed."
Shadow health minister Anne Milton said: "This is yet more evidence that nurses aren't getting the support they need.
"Given that three times as many people now die from hospital infections each year than die on Britain's roads it is simply unacceptable to find basic standards of hygiene are not being met because the resources aren't available.
"Nurses are being put in an impossible position. It's unfair on them and unfair on patients."
A Department of Health spokesperson said: "We have made substantial investment - an additional £270m a year by 2010/2011 - for the NHS to tackle healthcare associated infections.
"Trusts must make adequate arrangements for decontamination, out-of-hours cleaning and staff training in infection prevention and control."
A Royal College of Nursing (RCN) survey of 2,000 nurses found 37% had no access to a room for cleaning equipment.
Of those, a third have had to use a bathroom as an alternative.
The RCN described the results as "shocking", but the Department of Health said it was for individual trusts to make proper arrangements.
Dr Peter Carter, RCN chief executive and general secretary, said: "Having the time and space to clean and then store essential everyday hospital equipment such as IV stands, commodes and patient cushions is crucial in keeping patients safe from dangerous infections.
"It's shocking that some nurses have no choice but to store equipment in hospital bathrooms.
"People need to recognise that fighting infection is about much more than just hand washing."
The RCN survey also found that more than one third (34%) of nurses who have responsibility for decontaminating patient equipment have never received any formal training in how to do it.
Four out of 10 nurses said their organisation did not provide cleaning services 24 hours a day.
Training budgets
Dr Carter added: "Every trust should protect training budgets for nurses and make sure that every nurse in the country is given the opportunity to update their infection prevention training.
"Every nurse should have access to round-the-clock cleaning services.
"Overall, infection rates have been going down over the past couple of years, but that's from a very high point indeed."
Shadow health minister Anne Milton said: "This is yet more evidence that nurses aren't getting the support they need.
"Given that three times as many people now die from hospital infections each year than die on Britain's roads it is simply unacceptable to find basic standards of hygiene are not being met because the resources aren't available.
"Nurses are being put in an impossible position. It's unfair on them and unfair on patients."
A Department of Health spokesperson said: "We have made substantial investment - an additional £270m a year by 2010/2011 - for the NHS to tackle healthcare associated infections.
"Trusts must make adequate arrangements for decontamination, out-of-hours cleaning and staff training in infection prevention and control."
Minister in £25k security claim
Tourism minister Barbara Follett claimed more than £25,000 for security patrols at her London home, the Daily Telegraph claims.
It is the latest in a string of expense claims leaks which MPs said were made with Commons approval.
The wife of author Ken Follett and one of Parliament's richest MPs, Mrs Follett said her claims for security had been made within the rules.
Police have been asked to probe how the details were leaked to the paper.
'Disgusting reporting'
In a further disclosure, the Telegraph says immigration minister Phil Woolas claimed for nappies and women's clothing on his expenses, an allegation he vehemently denies.
He says they were listed on a receipt for food which he submitted, but he did not receive any money for them.
Mr Woolas called the Telegraph's reporting "absolutely disgusting" and said they were handling stolen property and making false allegations against ministers.
He said he believed the newspaper's claims might be "actionable" and he was seeking legal advice.
The paper reported that care services minister Phil Hope had spent more than £37,000 over about four years on refurbishing and furnishing a two-bedroom south London flat.
Mr Hope said: "I claimed the cost of running and furnishing a flat in London, in full accordance with the rules that apply to members of Parliament.
"The purchases I made were no more than was necessary to live in a habitable residence and replacements only occurred when furniture and fittings were worn out. These items were then disposed of.
"I have not personally benefited from this process, nor did I make purchases that were inappropriate for the property concerned."
Claims cleared
Mrs Follett's total bill for security patrols between 2004 and 2008 was £25,411.64, the paper said.
She told the BBC: "I claimed it, it's within the rules and I have no comment to make".
She also claimed £528.75 for a Chinese needlepoint rug to be repaired and cleaned, but was only paid back £300 after it was deemed excessive, the Telegraph said.
She told the newspaper: "As all of [my claims], bar one, have been accepted and cleared by the House of Commons Fees Office under the rules laid out in the Green Book, I have no further comment to make on them.
"The item not accepted by the Fees Office was claimed in error and is, to the best of my knowledge, one of the only two occasions in the last 12 years when my expenses claims have been queried by them."
Full details of all MPs' expenses dating back four years, running to 2.4 million receipts, were due to be published in the middle of July after the Commons authorities lost a Freedom of Information battle.
But instead, the Telegraph is revealing the information early and over several days.
BBC political correspondent Ben Wright said: "Clearly at the moment it is very much the government that is suffering because of this, because it is cabinet ministers who are having the spotlight shone on their expenses and junior ministers, as we discovered today.
"But MPs from other parties are going to be drawn into this, backbenchers too. There is a feeling that that is where, perhaps, some of the real, shocking horror stories of claims may then come to light, on the back benches."
Resignations predicted
The former independent MP, Martin Bell, said he believed a few MPs would now have to resign, and others would have to accept major changes to their expenses.
"I think the more we know about this, the worse it gets. I think Barbara Follet is in an almost impossible situation now.
"It's not a matter of her wealth, it's a matter of how can you possibly claim this amount of money for protection when we have a police service."
Other expense claims revealed earlier include a £6,500 claim by Gordon Brown to pay his brother for a cleaner. Downing Street has said there was "nothing wrong" with the claim.
And Lord Mandelson, who claimed £2,850 for his home, before quitting as an MP and selling it for a large profit, said the claims were for essential repairs.
It is the latest in a string of expense claims leaks which MPs said were made with Commons approval.
The wife of author Ken Follett and one of Parliament's richest MPs, Mrs Follett said her claims for security had been made within the rules.
Police have been asked to probe how the details were leaked to the paper.
'Disgusting reporting'
In a further disclosure, the Telegraph says immigration minister Phil Woolas claimed for nappies and women's clothing on his expenses, an allegation he vehemently denies.
He says they were listed on a receipt for food which he submitted, but he did not receive any money for them.
Mr Woolas called the Telegraph's reporting "absolutely disgusting" and said they were handling stolen property and making false allegations against ministers.
He said he believed the newspaper's claims might be "actionable" and he was seeking legal advice.
The paper reported that care services minister Phil Hope had spent more than £37,000 over about four years on refurbishing and furnishing a two-bedroom south London flat.
Mr Hope said: "I claimed the cost of running and furnishing a flat in London, in full accordance with the rules that apply to members of Parliament.
"The purchases I made were no more than was necessary to live in a habitable residence and replacements only occurred when furniture and fittings were worn out. These items were then disposed of.
"I have not personally benefited from this process, nor did I make purchases that were inappropriate for the property concerned."
Claims cleared
Mrs Follett's total bill for security patrols between 2004 and 2008 was £25,411.64, the paper said.
She told the BBC: "I claimed it, it's within the rules and I have no comment to make".
She also claimed £528.75 for a Chinese needlepoint rug to be repaired and cleaned, but was only paid back £300 after it was deemed excessive, the Telegraph said.
She told the newspaper: "As all of [my claims], bar one, have been accepted and cleared by the House of Commons Fees Office under the rules laid out in the Green Book, I have no further comment to make on them.
"The item not accepted by the Fees Office was claimed in error and is, to the best of my knowledge, one of the only two occasions in the last 12 years when my expenses claims have been queried by them."
Full details of all MPs' expenses dating back four years, running to 2.4 million receipts, were due to be published in the middle of July after the Commons authorities lost a Freedom of Information battle.
But instead, the Telegraph is revealing the information early and over several days.
BBC political correspondent Ben Wright said: "Clearly at the moment it is very much the government that is suffering because of this, because it is cabinet ministers who are having the spotlight shone on their expenses and junior ministers, as we discovered today.
"But MPs from other parties are going to be drawn into this, backbenchers too. There is a feeling that that is where, perhaps, some of the real, shocking horror stories of claims may then come to light, on the back benches."
Resignations predicted
The former independent MP, Martin Bell, said he believed a few MPs would now have to resign, and others would have to accept major changes to their expenses.
"I think the more we know about this, the worse it gets. I think Barbara Follet is in an almost impossible situation now.
"It's not a matter of her wealth, it's a matter of how can you possibly claim this amount of money for protection when we have a police service."
Other expense claims revealed earlier include a £6,500 claim by Gordon Brown to pay his brother for a cleaner. Downing Street has said there was "nothing wrong" with the claim.
And Lord Mandelson, who claimed £2,850 for his home, before quitting as an MP and selling it for a large profit, said the claims were for essential repairs.
Thousands flee Pakistan fighting
A Pakistani offensive against militants in the Swat Valley has displaced some 200,000 people and 300,000 are on the move or about to flee, the UN says.
As jets and helicopters pounded targets in the valley, the UN said it was threatening to become one of the world's biggest displacement crises.
The army says its "full-scale" assault had killed more than 170 militants in 24 hours, with the loss of 10 troops.
It accused the Taleban of trying to stop civilians leaving the area.
"We tried negotiation, we tried reconciliation, we offered the olive branch but we can't allow the writ of the government to be challenged," he said, speaking to Radio 4's PM programme.
Despite now abandoned attempts to secure a peace deal in and around Swat, the area - close to the border with Afghanistan - has long been riven by tensions.
Some 550,000 people had already been displaced before the current crisis, said UNHCR spokesman Ron Redmond.
Militants 'entrenched'
Those displaced over recent days have been forced to flee with very little preparation, aid workers say, with families often separated, and doctors in displaced camps report widespread psychological trauma.
Many are fleeing Mingora, the main town in Swat Valley, which was home to several hundred thousand people before the latest fighting began.
Locals say that most of the current fighting is centred on the Kabal and Charbagh areas of Swat, as well as Mingora itself, and fighting is reported in Buner and Lower Dir.
Militant strongholds were hit from the air on Friday as troops conducted operations on the ground.
Pakistani military spokesman Gen Athar Abbas announced the new casualty figures, which could not be verified independently.
Troops had killed 143 rebels in Swat, 25 in Lower Dir and six in Buner, he said, losing seven soldiers in Swat and three in Lower Dir.
"The army is now engaged in a full-scale operation to eliminate miscreants," he told reporters.
"They are on the run and trying to block the exodus of civilians from the area."
Earlier, he told the BBC the military's objective was to eliminate some 4-5,000 militants from the Swat Valley and neighbouring districts of Dir and Buner.
He warned it would be a "drawn-out affair" because militants in Swat had "entrenched themselves".
They were, he added, "making best use of the terrain, which is ideal country for any guerrilla warfare".
The government is confident it has public support for its military campaign but this could easily be eroded if civilian casualties mount, the BBC's Mark Dummett reports from Islamabad.
Threat of hunger
The Pakistani military says it is trying to help displaced civilians by establishing camps where they can seek shelter.
But reports suggest many thousands of civilians under threat from the fighting are unwilling or unable to move.
Roads have been blocked or reportedly mined by the rebels.
The Pakistani military has also imposed an indefinite curfew over swathes of the region.
A local journalist in Mingora told the BBC that electricity and water had been shut down and markets had been closed since Thursday. There was, the journalist said, a real threat of food shortages in the coming days.
While the army accuses the Taleban of holding the people left in the Swat Valley hostage, people who have escaped blame both sides for the conflict and the dire position of the civilians caught between them, our correspondent notes.
The government signed a peace agreement with the Swat Taleban in February, allowing Sharia law to be locally imposed.
But in the face of territorial advances by emboldened Taleban forces, the strategy came under increasing fire from Washington, a key ally.
The US insists the militants pose a direct threat to its security, and has demanded they be confronted
As jets and helicopters pounded targets in the valley, the UN said it was threatening to become one of the world's biggest displacement crises.
The army says its "full-scale" assault had killed more than 170 militants in 24 hours, with the loss of 10 troops.
It accused the Taleban of trying to stop civilians leaving the area.
"We tried negotiation, we tried reconciliation, we offered the olive branch but we can't allow the writ of the government to be challenged," he said, speaking to Radio 4's PM programme.
Despite now abandoned attempts to secure a peace deal in and around Swat, the area - close to the border with Afghanistan - has long been riven by tensions.
Some 550,000 people had already been displaced before the current crisis, said UNHCR spokesman Ron Redmond.
Militants 'entrenched'
Those displaced over recent days have been forced to flee with very little preparation, aid workers say, with families often separated, and doctors in displaced camps report widespread psychological trauma.
Many are fleeing Mingora, the main town in Swat Valley, which was home to several hundred thousand people before the latest fighting began.
Locals say that most of the current fighting is centred on the Kabal and Charbagh areas of Swat, as well as Mingora itself, and fighting is reported in Buner and Lower Dir.
Militant strongholds were hit from the air on Friday as troops conducted operations on the ground.
Pakistani military spokesman Gen Athar Abbas announced the new casualty figures, which could not be verified independently.
Troops had killed 143 rebels in Swat, 25 in Lower Dir and six in Buner, he said, losing seven soldiers in Swat and three in Lower Dir.
"The army is now engaged in a full-scale operation to eliminate miscreants," he told reporters.
"They are on the run and trying to block the exodus of civilians from the area."
Earlier, he told the BBC the military's objective was to eliminate some 4-5,000 militants from the Swat Valley and neighbouring districts of Dir and Buner.
He warned it would be a "drawn-out affair" because militants in Swat had "entrenched themselves".
They were, he added, "making best use of the terrain, which is ideal country for any guerrilla warfare".
The government is confident it has public support for its military campaign but this could easily be eroded if civilian casualties mount, the BBC's Mark Dummett reports from Islamabad.
Threat of hunger
The Pakistani military says it is trying to help displaced civilians by establishing camps where they can seek shelter.
But reports suggest many thousands of civilians under threat from the fighting are unwilling or unable to move.
Roads have been blocked or reportedly mined by the rebels.
The Pakistani military has also imposed an indefinite curfew over swathes of the region.
A local journalist in Mingora told the BBC that electricity and water had been shut down and markets had been closed since Thursday. There was, the journalist said, a real threat of food shortages in the coming days.
While the army accuses the Taleban of holding the people left in the Swat Valley hostage, people who have escaped blame both sides for the conflict and the dire position of the civilians caught between them, our correspondent notes.
The government signed a peace agreement with the Swat Taleban in February, allowing Sharia law to be locally imposed.
But in the face of territorial advances by emboldened Taleban forces, the strategy came under increasing fire from Washington, a key ally.
The US insists the militants pose a direct threat to its security, and has demanded they be confronted
Thursday, May 7, 2009
Skull and cross bones warnings on cigarette packs from May 31
The government on Wednesday assured the Supreme Court that it would ensure pictorial warnings like the skull and cross bones or a cancer-disfigured face were carried on the packets of cigarettes and other tobacco products from May 31.
Additional Solicitor General Gopal Subramaniam told the bench of Justice B N Agrawal and Justice G S Singhvi that the government will not defer beyond May 31 the implementation of the law mandating pictorial warnings on cigarette packets.
"The Union of India undertakes to implement the Cigarette and Other Tobacco Products (Packing and Labeling) Rules, 2008, from May 31, 2009," the government’s law officer said.
"Its implementation will not be further delayed in any case," he added.
Approving of the government’s commitment, the bench ruled, “No court in the country can pass an order that might hinder the implementation of the law.”
The rider came on a plea by senior counsel Indira Jaisingh, who said that the powerful tobacco lobbies that had been behind repeated deferments of the law's implementation for the last three years might still delay this.
The government's undertaking came during the hearing of a lawsuit by NGO Health for Millions seeking implementation of the law on pictorial warnings on the packets of all tobacco products. The pictorial warning would occupy 40 percent of the space on the front of all packets.
The undertaking came a day after the court queried the government on Jaisingh's charge that despite a Group of Ministers (GoM) at its meeting Feb 3 deciding that the pictorial warning should be carried on both sides of the packet, the government notification only provided for this on the front.
Jaisingh contended that this was due to the pressure of the tobacco lobby and was much against the wishes of former health minister A. Ramados, a staunch supporter of the "No Smoking" cause.
Thereafter, the bench Tuesday sought the minutes of the Feb 3 GoM meeting.
Producing these in the court Wednesday, Subramaniam explained that though the agenda mentioned that the displays would be on both sides of packets, the minutes of the meeting did not specify this.
The GoM chairman had wanted to convene another meeting to rectify the lacunae but this did not happen due to the paucity of the time in the run-up to the general elections, Subramaniam said, adding that had another meeting been convened, the May 31 deadline would have been missed.
Lauding the court order, Bhavana Mukhopadyay, director (Health Promotion) at the Voluntary Health Association of India, said: "Since the 2006 act (mandating pictorial warnings) was passed, the issue was being diluted or delayed for one reason or another. Even now, had the Supreme Court not stepped in, there would have been further delay."
"There is no question of any hiccups now. Whichever government comes to power (after the general elections) will have to follow the court's order and the warnings will be there from June 1. And then, there is the injunction that no court can pass an order inconsistent with today's order," Mukhopadyay told IANS.
P.C. Gupta, director of the Healis Sekhsaria Institute for Public Health, said: "It is most unfortunate that the GoM, since its constitution in early 2007, had delayed the implementation of the law for two whole years, not to mention having diluted the stronger warning for a milder one."
According to a health ministry official, the pictorial warnings are a crucial step to protect the public from the hazards of tobacco and second-hand smoke, and to reduce the use of tobacco by the youth
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Additional Solicitor General Gopal Subramaniam told the bench of Justice B N Agrawal and Justice G S Singhvi that the government will not defer beyond May 31 the implementation of the law mandating pictorial warnings on cigarette packets.
"The Union of India undertakes to implement the Cigarette and Other Tobacco Products (Packing and Labeling) Rules, 2008, from May 31, 2009," the government’s law officer said.
"Its implementation will not be further delayed in any case," he added.
Approving of the government’s commitment, the bench ruled, “No court in the country can pass an order that might hinder the implementation of the law.”
The rider came on a plea by senior counsel Indira Jaisingh, who said that the powerful tobacco lobbies that had been behind repeated deferments of the law's implementation for the last three years might still delay this.
The government's undertaking came during the hearing of a lawsuit by NGO Health for Millions seeking implementation of the law on pictorial warnings on the packets of all tobacco products. The pictorial warning would occupy 40 percent of the space on the front of all packets.
The undertaking came a day after the court queried the government on Jaisingh's charge that despite a Group of Ministers (GoM) at its meeting Feb 3 deciding that the pictorial warning should be carried on both sides of the packet, the government notification only provided for this on the front.
Jaisingh contended that this was due to the pressure of the tobacco lobby and was much against the wishes of former health minister A. Ramados, a staunch supporter of the "No Smoking" cause.
Thereafter, the bench Tuesday sought the minutes of the Feb 3 GoM meeting.
Producing these in the court Wednesday, Subramaniam explained that though the agenda mentioned that the displays would be on both sides of packets, the minutes of the meeting did not specify this.
The GoM chairman had wanted to convene another meeting to rectify the lacunae but this did not happen due to the paucity of the time in the run-up to the general elections, Subramaniam said, adding that had another meeting been convened, the May 31 deadline would have been missed.
Lauding the court order, Bhavana Mukhopadyay, director (Health Promotion) at the Voluntary Health Association of India, said: "Since the 2006 act (mandating pictorial warnings) was passed, the issue was being diluted or delayed for one reason or another. Even now, had the Supreme Court not stepped in, there would have been further delay."
"There is no question of any hiccups now. Whichever government comes to power (after the general elections) will have to follow the court's order and the warnings will be there from June 1. And then, there is the injunction that no court can pass an order inconsistent with today's order," Mukhopadyay told IANS.
P.C. Gupta, director of the Healis Sekhsaria Institute for Public Health, said: "It is most unfortunate that the GoM, since its constitution in early 2007, had delayed the implementation of the law for two whole years, not to mention having diluted the stronger warning for a milder one."
According to a health ministry official, the pictorial warnings are a crucial step to protect the public from the hazards of tobacco and second-hand smoke, and to reduce the use of tobacco by the youth
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The woman who saved Delhi from Pappus
On Thursday, when 53 per cent voters turned out to choose their leader, Delhi not only outdid other metros like Mumbai and Bangalore, it also created a record of achieving the highest poll percentage in the last 20 years.
So, how did Delhi achieve this feat? If you believe Satbir Silas Bedi, Delhi’s Chief Electoral Officer (CEO) and the brain behind the catchy Pappu Can’t Vote campaign, it is not merely the ad that resulted in the high polling percentage.
“Much of the credit also goes to my colleagues and staff. Like the Block Level Officers who went to each and every residential colony to ensure citizens get themselves registered for voting,” she said.
The groundwork to ensure better polling had started much before, Bedi said.
“Election management in metro cities is a different ballgame. A team of 80 officials has been constantly on the job since October 2007 — revising and updating electoral rolls. Finally the dedication of my staff paid off,” she said.
Bedi said the Pappu Can’t Vote campaign also hit the right chord with voters, especially young voters. “The campaign had a high recall value. It touched a chord with Delhiites psyche. It was not a preachy campaign but very subtly motivated voters. Through radio, television and newspapers we were constantly hammering it in people’s mind,” she said.
“The awareness created by the campaign was so much that the call centre of the CEO office received more than 2,000 calls per day with voters wanted to clear their voting-related queries”, she added.
“I am very happy today. Common citizens have been calling up our office since evening saying they saw our ad and were motivated to vote,” added Bedi.
After the gruelling session that lasted over a month, she is now looking forward to relaxing with her family. “Though we live in the same house I hardly spoke to my son. Now I am looking forward to some quality time with him before counting day on May 16,” she said.
So, how did Delhi achieve this feat? If you believe Satbir Silas Bedi, Delhi’s Chief Electoral Officer (CEO) and the brain behind the catchy Pappu Can’t Vote campaign, it is not merely the ad that resulted in the high polling percentage.
“Much of the credit also goes to my colleagues and staff. Like the Block Level Officers who went to each and every residential colony to ensure citizens get themselves registered for voting,” she said.
The groundwork to ensure better polling had started much before, Bedi said.
“Election management in metro cities is a different ballgame. A team of 80 officials has been constantly on the job since October 2007 — revising and updating electoral rolls. Finally the dedication of my staff paid off,” she said.
Bedi said the Pappu Can’t Vote campaign also hit the right chord with voters, especially young voters. “The campaign had a high recall value. It touched a chord with Delhiites psyche. It was not a preachy campaign but very subtly motivated voters. Through radio, television and newspapers we were constantly hammering it in people’s mind,” she said.
“The awareness created by the campaign was so much that the call centre of the CEO office received more than 2,000 calls per day with voters wanted to clear their voting-related queries”, she added.
“I am very happy today. Common citizens have been calling up our office since evening saying they saw our ad and were motivated to vote,” added Bedi.
After the gruelling session that lasted over a month, she is now looking forward to relaxing with her family. “Though we live in the same house I hardly spoke to my son. Now I am looking forward to some quality time with him before counting day on May 16,” she said.
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