David Cameron was last night considering removing the Conservative whip from some of the most senior party backbenchers in the wake of allegations that they have abused the MPs' expenses system to build swimming pools, improve their second homes, and even buy horse manure at the expense of the taxpayer.
The Tory leader was informed yesterday afternoon about some of the allegations. His spokesman said last night he was appalled at what he had heard, and was considering his disciplinary options.
A spokesman for the party said: "David Cameron can, with the agreement of the chief whip, remove the party whip from these people; and there is no doubt he will do this if he thinks it is appropriate." Three Tory MPs have responded to the allegations by admitting culpability, saying they would repay the expenses they claimed.
Cameron's initial tough response came in the wake of the first opinion poll that suggested the Tory party was being damaged as much as Labour by exposure of MPs' expenses claims. A Times/Populus poll showed Labour support down four points since early April to 26%, just above its lowest figure last summer. But the Tories are also four points down at 39%. The Liberal Democrats are up four points to 22%, their highest for nearly four years. Alarmingly for the Conservative party, the bulk of the poll was done before allegations against Tory MPs were published.
If he decides to remove the party whip, Cameron will be taking a huge risk with his personal authority since he will be disciplining some of the most senior backbench figures inside the party. They include: former agriculture secretary Douglas Hogg; Tory chairman of the defence select committee Sir James Arbuthnot; chairman of the 1922 Tory backbench committee Sir Michael Spicer; leading eurosceptic David Heathcoat-Amory; and former Conservative chairman Michael Ancram.
Questions were also being raised by the Daily Telegraph, on the basis of its access to MPs' expenses forms, over claims made by the former shadow home secretary, David Davis, who challenged Cameron for the party leadership.
Hogg submitted a claim form for more than £2,000 to pay to clear the moat around his country estate. Sir Michael Spicer, claimed £5,650 in nine months for his garden upkeep. Michael Ancram claimed more than £14,000 a year in expenses while owning three properties, none with a mortgage, and are together worth an estimated £8m.
It was also claimed that deputy speaker Sir Alan Haselhurst claimed £142,119 for his country home over the last seven years, despite having no mortgage. He had been seen by some as candidate for the speakership if Michael Martin stood down before the election.
Martin yesterday astonished some MPs by rounding on critics in Westminster, including Labour MP Kate Hoey, accusing them of voicing their concerns by going to the press.
So far Cameron has decided to take no action against any of his shadow cabinet and has defended Andrew Lansley, shadow health secretary, and Michael Gove, shadow children's secretary, from claims of "flipping" their homes .
Gordon Brown also responded yesterday to the systematic flouting of Commons expenses rules by offering his own unreserved apology todayon behalf of all the political classes at Westminster. It is the second public apology the prime minister has been forced to give in a month, following his regret over leaked emails showing his former aide trying to smear the Conservative leadership.
There is also a general fear, including among the Liberal Democrats, that it will be parties outside Westminster ranging from Ukip to the Green party and the British National party that will be the big beneficiaries at the European elections on 4 June.
In the first signs that contrite MPs were taking unilateral steps to protect their reputation, one leftwing Labour MP, Ronnie Campbell, announced that he would try to set an example by paying back £6,000 in claims for furniture. John Mann, another Labour backbencher, said MPs should have their expenses cut. He also called for the Speaker to quit if he would not lead the campaign for reform.
In an effort to quell public anger, Brown offered a clear apology and pressed for an early report by the Commons committee on standards in public life. He said: "We must show that we have the highest standards for our profession. And we must show that, where mistakes have been made and errors have been discovered, where wrongs have to be righted, that that is done so immediately.
"We have also to try hard to show people and think hard about how a profession that, like yours, depends on trust – the most precious asset it has is trust – how that profession too can show that it is genuinely there to serve the public in all its future needs."
He also said: "I want to apologise on behalf of politicians, on behalf of all parties, for what has happened in the events of the last few days."
Brown urged his MPs to show discipline and unity, insisting that by the time of the general election the voters will be making decisions on the basis of big economic divisions between the parties.
Many Labour MPs have expressed their anger at what they regarded as the partial and distorted way their expenses claims were being reported in the Telegraph day after day.
In an attempt to end the drip-by-drip damage on Westminster's integrity and reputation, the Commons committee responsible for expenses met to see if it should bring forward its planned publication of claims dating from 2004-08. But it rejected a radical acceleration. Nick Harvey, a Liberal Democrat member of the House of Commons commission, said it would bring forward the formal publication of MPs' expenses from July to next month, if it could.
Monday, May 11, 2009
GM bankruptcy 'looks more likely'
General Motors going into bankruptcy protection was looking more likely, the firm's chief executive has said.
Fritz Henderson added the task to avoid the measure was "large" - with his comments sending GM shares down 10%.
The US government has given GM a deadline of 1 June to restructure the business successfully if it wishes to gain more emergency loans.
GM has already warned it will probably need to enter bankruptcy protection if it cannot get the additional funding.
"Certainly the task that we have in front of us is large," Mr Henderson said, but added that there was "still an opportunity and still a chance for it to be done outside of a court process."
GM is continuing plans to close 2,600 of its 6,246 US dealerships - with a reduction in the network part of major cost-cutting plans at the firm, which hopes to reduce its $44bn (£29bn) debt mountain.
It has also not ruled out moving its base from Detroit.
Opel issue
Earlier Mr Henderson reiterated that the firm was in "urgent need of funding", despite having already been given $15bn in loans from the government since December.
Last month, General Motors confirmed that it would be cutting 21,000 jobs worldwide and shutting a number of factories in an effort to stay in business.
As part of the plan, GM is selling a number of its brands - Hummer, Saturn and Saab - and scrapping Pontiac entirely.
It is also in talks to sell its GM Europe business, which comprises Opel, Vauxhall and Saab.
Fiat is the front-runner to take over Opel and Vauxhall, although a number of stumbling blocks are emerging - not least from trade unions and governments, who fear any such tie-up could mothball a number of factories and cost thousands of jobs around the continent.
'Integral part'
Commenting on the prospect of Fiat taking over Opel and Vauxhall in Europe, and any resulting plant closures, Mr Henderson praised Vauxhall's plants in the UK for their "superb work", which he said was "an integral and a crucial part of the business".
He added, though, that he could not stipulate what any new investor in GM Europe would do with the factories.
The Canadian component manufacturer Magna is also in talks to take a substantial stake in GM Europe, and the BBC has learned that the Chinese car company SAIC is also negotiating with GM.
GM has said that while it would surrender control to a new investor in GM Europe, it would like to retain a stake in the business.
Back in the US, GM said it was also in talks with two potential buyers for its Hummer brand.
Fritz Henderson added the task to avoid the measure was "large" - with his comments sending GM shares down 10%.
The US government has given GM a deadline of 1 June to restructure the business successfully if it wishes to gain more emergency loans.
GM has already warned it will probably need to enter bankruptcy protection if it cannot get the additional funding.
"Certainly the task that we have in front of us is large," Mr Henderson said, but added that there was "still an opportunity and still a chance for it to be done outside of a court process."
GM is continuing plans to close 2,600 of its 6,246 US dealerships - with a reduction in the network part of major cost-cutting plans at the firm, which hopes to reduce its $44bn (£29bn) debt mountain.
It has also not ruled out moving its base from Detroit.
Opel issue
Earlier Mr Henderson reiterated that the firm was in "urgent need of funding", despite having already been given $15bn in loans from the government since December.
Last month, General Motors confirmed that it would be cutting 21,000 jobs worldwide and shutting a number of factories in an effort to stay in business.
As part of the plan, GM is selling a number of its brands - Hummer, Saturn and Saab - and scrapping Pontiac entirely.
It is also in talks to sell its GM Europe business, which comprises Opel, Vauxhall and Saab.
Fiat is the front-runner to take over Opel and Vauxhall, although a number of stumbling blocks are emerging - not least from trade unions and governments, who fear any such tie-up could mothball a number of factories and cost thousands of jobs around the continent.
'Integral part'
Commenting on the prospect of Fiat taking over Opel and Vauxhall in Europe, and any resulting plant closures, Mr Henderson praised Vauxhall's plants in the UK for their "superb work", which he said was "an integral and a crucial part of the business".
He added, though, that he could not stipulate what any new investor in GM Europe would do with the factories.
The Canadian component manufacturer Magna is also in talks to take a substantial stake in GM Europe, and the BBC has learned that the Chinese car company SAIC is also negotiating with GM.
GM has said that while it would surrender control to a new investor in GM Europe, it would like to retain a stake in the business.
Back in the US, GM said it was also in talks with two potential buyers for its Hummer brand.
China bolsters disaster response
China has announced a series of measures aimed at improving its response to natural disasters.
The moves come as the country marks the first anniversary of the devastating earthquake which hit Sichuan province on 12 May last year.
More than 80,000 people are believed to have died in the quake, including at least 5,300 children.
The new policy calls for bigger relief stocks, satellite forecasting, and training for thousands of officials.
The government says more than 70% of China's cities, and more than half the population, are vulnerable to serious natural disasters.
China was widely praised for its rapid response to the Sichuan quake, but there was public anger over what was perceived to be the shoddy building of schools.
Parents who lost their children have already expressed fears they will not be allowed to properly commemorate the disaster's anniversary.
Many parents want to return to the site of the schools where their children died.
But the authorities have previously previously prevented them from doing so.
'Touched'
Meanwhile, details have been released of a letter from the Chinese Prime Minister, Wen Jibao, to school students in Sichuan. He told them he was touched by a book of paintings they sent him depicting their experiences.
It was called Beautiful Flowers - the words he wrote on a blackboard at the scene of the devastation.
And former Olympic champion hurdler Liu Xiang, visited a primary school in the hard-hit Beichuan county, holding an athletics class.
But the lesson was cut short after only five minutes because the school playground was too crowded with reporters and bystanders, the sina.com web portal reported
The moves come as the country marks the first anniversary of the devastating earthquake which hit Sichuan province on 12 May last year.
More than 80,000 people are believed to have died in the quake, including at least 5,300 children.
The new policy calls for bigger relief stocks, satellite forecasting, and training for thousands of officials.
The government says more than 70% of China's cities, and more than half the population, are vulnerable to serious natural disasters.
China was widely praised for its rapid response to the Sichuan quake, but there was public anger over what was perceived to be the shoddy building of schools.
Parents who lost their children have already expressed fears they will not be allowed to properly commemorate the disaster's anniversary.
Many parents want to return to the site of the schools where their children died.
But the authorities have previously previously prevented them from doing so.
'Touched'
Meanwhile, details have been released of a letter from the Chinese Prime Minister, Wen Jibao, to school students in Sichuan. He told them he was touched by a book of paintings they sent him depicting their experiences.
It was called Beautiful Flowers - the words he wrote on a blackboard at the scene of the devastation.
And former Olympic champion hurdler Liu Xiang, visited a primary school in the hard-hit Beichuan county, holding an athletics class.
But the lesson was cut short after only five minutes because the school playground was too crowded with reporters and bystanders, the sina.com web portal reported
US sacks top Afghanistan general
The US defence secretary has asked the country's commander in Afghanistan to step down, saying the battle against the Taleban needs "new thinking".
Robert Gates confirmed Gen David McKiernan would effectively be sacked less than a year after taking command.
He will be replaced by Gen Stanley McChrystal, who is seen as having a better understanding of the conflict.
The change comes as the US boosts troops numbers in Afghanistan and prepares for a change in strategy.
Gen McKiernan's time as US commander in Afghanistan has coincided with a surge in violence.
His successor currently serves as the director of US Joint Chiefs of Staff, and was previously a director of special operations forces.
Announcing the removal of Gen McKiernan from his role, Mr Gates said new military leadership was needed to go along with a new strategy and a new ambassador.
"This is the right time to make the change," he said.
"Our mission there requires new thinking and new approaches from our military leaders."
He said the decision was in the best interest of US national security and the success of the Afghanistan mission.
It was made after consulting the chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, and the commander of the US Central Command, Gen David Petraeus.
The change also had the approval of President Barack Obama.
Correspondents say Gen McChrystal is a specialist in the kind of counter-insurgency strategy the Obama administration plans to implement in Afghanistan.
Strategic goals
The change comes as President Obama's administration prepares to send thousands of extra troops to Afghanistan, and amid pressure on international forces to reduce the numbers of civilians killed by coalition air strikes.
With plans announced for a phased pullout of US troops from Iraq, Afghanistan was recently confirmed as the primary focus of US military operations.
The US is sending 21,000 additional troops to the country, to join an existing force of 38,000.
However, the new strategy is expected to pair non-military methods and reconstruction with a stronger armed force on the ground.
But relations with President Hamid Karzai's Afghan government have been strained by a recent air strike which some Afghan officials say killed as many as 150 people.
On Sunday, Gen Petraeus said "tactical actions" should not undermine strategic goals.
Gen McKiernan, who will also lose his role as head of the Nato-led International Security Assistance Force (Isaf), recently described the situation in the country as a "stalemate
Robert Gates confirmed Gen David McKiernan would effectively be sacked less than a year after taking command.
He will be replaced by Gen Stanley McChrystal, who is seen as having a better understanding of the conflict.
The change comes as the US boosts troops numbers in Afghanistan and prepares for a change in strategy.
Gen McKiernan's time as US commander in Afghanistan has coincided with a surge in violence.
His successor currently serves as the director of US Joint Chiefs of Staff, and was previously a director of special operations forces.
Announcing the removal of Gen McKiernan from his role, Mr Gates said new military leadership was needed to go along with a new strategy and a new ambassador.
"This is the right time to make the change," he said.
"Our mission there requires new thinking and new approaches from our military leaders."
He said the decision was in the best interest of US national security and the success of the Afghanistan mission.
It was made after consulting the chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, and the commander of the US Central Command, Gen David Petraeus.
The change also had the approval of President Barack Obama.
Correspondents say Gen McChrystal is a specialist in the kind of counter-insurgency strategy the Obama administration plans to implement in Afghanistan.
Strategic goals
The change comes as President Obama's administration prepares to send thousands of extra troops to Afghanistan, and amid pressure on international forces to reduce the numbers of civilians killed by coalition air strikes.
With plans announced for a phased pullout of US troops from Iraq, Afghanistan was recently confirmed as the primary focus of US military operations.
The US is sending 21,000 additional troops to the country, to join an existing force of 38,000.
However, the new strategy is expected to pair non-military methods and reconstruction with a stronger armed force on the ground.
But relations with President Hamid Karzai's Afghan government have been strained by a recent air strike which some Afghan officials say killed as many as 150 people.
On Sunday, Gen Petraeus said "tactical actions" should not undermine strategic goals.
Gen McKiernan, who will also lose his role as head of the Nato-led International Security Assistance Force (Isaf), recently described the situation in the country as a "stalemate
Sunday, May 10, 2009
India Inc’s Q4 profits suggest faster recovery
Corporate profits are down, but not out.
Against negative expectations of analysts in the previous quarter, the corporate profit growth for most leading companies has come out in the positive zone, strengthening the belief that a recovery could be faster than expected.
A look into the results of BSE 500 index companies reveals that the average net profit growth for the 210 companies that have disclosed their results for the last quarter stands at 0.8 per cent. While this is significantly lower than the 21 per cent that they witnessed in the same quarter a year ago, it is better than what was expected.
“The results are much better than expected and the trend is positive. We expected a quarter on quarter growth of 0.8 per cent for a set of companies but it has actually come out to be 4.8 per cent,” said Amitabh Chakraborty, president, equity, at Religare Enterprises.
“Better than expected results have also been one of the reasons that have held the markets together over the past one month,” said Chakraborty. A mood of recovery across the globe is fanning further optimism. Revenue growth for the same companies was 4 per cent against 24.2 per cent a year ago.
“We were all expecting a substantially low numbers or in fact negative growth numbers but that has not happened. We have positive numbers for majority of the companies,” said Alex Mathew, head of research at Geojit BNP Paribas Financial Services. “We expect a better result in one or two quarters down the line and a faster recovery.”
The pressure on the interest expenditure front for the companies softened during the quarter from 40 per cent in Q4 2007-08 but still stood at a high of 26 per cent in the latest quarter.
But margins are under stress. The same set of companies witnessed a growth of 2.3 per cent in net profit in the full year 2008-09 against 29.3 per cent for 2007-08. Average revenue growth was 19.3 per cent for the fiscal 2009 against 26.4 per cent in the previous year.
courtsey ...the hindusthan times
Against negative expectations of analysts in the previous quarter, the corporate profit growth for most leading companies has come out in the positive zone, strengthening the belief that a recovery could be faster than expected.
A look into the results of BSE 500 index companies reveals that the average net profit growth for the 210 companies that have disclosed their results for the last quarter stands at 0.8 per cent. While this is significantly lower than the 21 per cent that they witnessed in the same quarter a year ago, it is better than what was expected.
“The results are much better than expected and the trend is positive. We expected a quarter on quarter growth of 0.8 per cent for a set of companies but it has actually come out to be 4.8 per cent,” said Amitabh Chakraborty, president, equity, at Religare Enterprises.
“Better than expected results have also been one of the reasons that have held the markets together over the past one month,” said Chakraborty. A mood of recovery across the globe is fanning further optimism. Revenue growth for the same companies was 4 per cent against 24.2 per cent a year ago.
“We were all expecting a substantially low numbers or in fact negative growth numbers but that has not happened. We have positive numbers for majority of the companies,” said Alex Mathew, head of research at Geojit BNP Paribas Financial Services. “We expect a better result in one or two quarters down the line and a faster recovery.”
The pressure on the interest expenditure front for the companies softened during the quarter from 40 per cent in Q4 2007-08 but still stood at a high of 26 per cent in the latest quarter.
But margins are under stress. The same set of companies witnessed a growth of 2.3 per cent in net profit in the full year 2008-09 against 29.3 per cent for 2007-08. Average revenue growth was 19.3 per cent for the fiscal 2009 against 26.4 per cent in the previous year.
courtsey ...the hindusthan times
Chew on this, RTI brings lost cow home
Unhappy with the police for failing to act on your complaint? Well, the Right to Information (RTI) Act can come to your rescue.
Gobind Dubey, a resident of north Delhi’s Metro Vihar, was recently surprised to find a couple of policemen at his door. They had Dubey’s stolen cow with them.
All they wanted was for him to withdraw his RTI application.
A few months ago, Dubey had complained to the police that the cow, his only source of income, had been taken away by one Raju Tyagi, a dairy owner.
The police refused to register a case, saying Tyagi had bought the animal and had the documents to prove it.
On a friend’s advice, Dubey filed an RTI application, seeking details of the action taken on his complaint.
“About a week after I filed the application, policemen came to my house with Tyagi and returned my cow,” he said. “Tyagi apologised to me and the police requested me not to pursue the case further.”
About 50 km away in Ghaziabad in UP, Mukesh Kumar, too, has reason to thank the RTI Act.
Kumar, an electrician, had complained to the police that a man had duped him. A cheque for Rs 70,000 — that was owed to Kumar — had bounced.
When no action was taken, he filed an RTI application. Within days, the police asked Kumar to come to Ghaziabad and collect his money. “They just wanted me to give in writing that the issue had been settled,” he said.
Magsaysay award-winner Arvind Kejriwal said these two were true examples of people’s empowerment through the RTI Act. About 75 lakh RTI applications were filed last year. “The law was framed to make public servants accountable to people and it is happening to some extent,” said Kejriwal.
Gobind Dubey, a resident of north Delhi’s Metro Vihar, was recently surprised to find a couple of policemen at his door. They had Dubey’s stolen cow with them.
All they wanted was for him to withdraw his RTI application.
A few months ago, Dubey had complained to the police that the cow, his only source of income, had been taken away by one Raju Tyagi, a dairy owner.
The police refused to register a case, saying Tyagi had bought the animal and had the documents to prove it.
On a friend’s advice, Dubey filed an RTI application, seeking details of the action taken on his complaint.
“About a week after I filed the application, policemen came to my house with Tyagi and returned my cow,” he said. “Tyagi apologised to me and the police requested me not to pursue the case further.”
About 50 km away in Ghaziabad in UP, Mukesh Kumar, too, has reason to thank the RTI Act.
Kumar, an electrician, had complained to the police that a man had duped him. A cheque for Rs 70,000 — that was owed to Kumar — had bounced.
When no action was taken, he filed an RTI application. Within days, the police asked Kumar to come to Ghaziabad and collect his money. “They just wanted me to give in writing that the issue had been settled,” he said.
Magsaysay award-winner Arvind Kejriwal said these two were true examples of people’s empowerment through the RTI Act. About 75 lakh RTI applications were filed last year. “The law was framed to make public servants accountable to people and it is happening to some extent,” said Kejriwal.
Jayalalithaa's demand for Eelam 'strange': Karunanidhi
Tamil Nadu Chief Minister M Karunanidhi on Sunday attacked AIADMK chief Jayalalithaa for raking up the issue of a separate Eelam and described it as "strange".
"In 2007, when I penned an eulogy condoling the death of slain LTTE spokesperson S P Tamilselvan, she demanded dismissal of my government, saying the LTTE was a banned organisation in India and its chief Prabhakaran a proclaimed offender," he said.
In fact, AIADMK government had even declined to allow Chennai to be used for some tentative dialogue between the LTTE and the Sri Lankan government, the DMK chief said at a joint election rally with Congress President Sonia Gandhi.
"But it is strange that she is now promising separate Eelam," Karunanidhi, who had himself raised the demand for separate homeland for Tamils, said.
"I do not want to reply to her charges. Will anybody bite a snake, if bitten by it," he said.
The ailing 85-year-old leader, who was discharged from hospital on Saturday, said Prime Minister Manmohan Singh and Congress General Secretary Rahul Gandhi had assured the support of Congress for bringing peace in Sri Lanka
"In 2007, when I penned an eulogy condoling the death of slain LTTE spokesperson S P Tamilselvan, she demanded dismissal of my government, saying the LTTE was a banned organisation in India and its chief Prabhakaran a proclaimed offender," he said.
In fact, AIADMK government had even declined to allow Chennai to be used for some tentative dialogue between the LTTE and the Sri Lankan government, the DMK chief said at a joint election rally with Congress President Sonia Gandhi.
"But it is strange that she is now promising separate Eelam," Karunanidhi, who had himself raised the demand for separate homeland for Tamils, said.
"I do not want to reply to her charges. Will anybody bite a snake, if bitten by it," he said.
The ailing 85-year-old leader, who was discharged from hospital on Saturday, said Prime Minister Manmohan Singh and Congress General Secretary Rahul Gandhi had assured the support of Congress for bringing peace in Sri Lanka
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