Fidel Castro's decision to ban all cash transactions in US dollars in Cuba has once more turned the spotlight on Cuba's ailing economy. All conversions between the US dollar and Cuba's "convertible" peso will from 8 November be subject to a 10% tax. Cuban citizens, who receive money from overseas, and foreign visitors, who change dollars in Cuba, will be affected. Critics of the measure argue that it is a step backwards, reflecting the Cuban president's desire to increase his control of the economy and to clamp down on private enterprise. In a live television broadcast announcing the measure, President Castro's chief aide said it was necessary because of the United States' increasing "economic aggression". "The ten percent obligation applies exclusively to the dollar by virtue of the situation created by the new measures of the US government to suffocate our country," he said. The Bush administration has taken an increasingly harsh line on Cuba in recent months. President Bush's government, which has been a strong supporter of the 40 year old trade embargo on Cuba, introduced even tighter restrictions on Cuba in May. Cubans living in the US are now limited to one visit to Cuba every three years and they can only send money to their immediate relatives. A leading expert on the Cuban economy says that Castro's tax plan smacks more of a desperate economic measure than a political gesture. "I think it is primarily an effort to raise some cash," says Jose Barrionuevo, head of strategy for Latin American emerging markets for Barclays Capital. "It underscores the fact that the economy is in very bad shape and the government is looking for sources of revenue." The tax will hit the families of Cuban exiles hardest as they benefit from the money their displaced relatives send home. This money, known as remittances, can amount to as much as 1bn a year. Those remaining in Cuba will have to pay the tax. Their relatives abroad may choose to send money in other currencies which are not subject to the tax, such as euros, or increase their dollar payments to compensate. However, many of Cuban's poorest citizens could be worse off as a result. The tax will also affect the two million tourists who visit Cuba every year, particularly those Americans who continue to defy a ban on travel there. Cuba's tourist industry has been one of its few economic success stories over the last ten years and, according to the UN Economic Commission for Latin America, is now worth 3bn to the country. The tax is designed to provide much needed revenue for Cuba's cash strapped economy. Cuba badly needs dollars to pay for essential items such as food, fuel and medicine. Much of Cuba's basic infrastructure is in a state of disrepair. In recent weeks, Cuba has suffered its most serious power cuts in a decade and there have also been water shortages in parts of the island. Cuba's economy had staged a modest recovery during the mid 1990s as the collapse of the Soviet Union forced it to embrace foreign capital, decentralise trade and permit limited private enterprise. However, a decline in foreign tourism since 2002, periodic hurricanes and the increasing costs of importing oil have put a strain on the economy. It has however yet to be seen if the tax will provide a solution to the government's economic problems. The tax could fuel an active black market in currency trading, Mr Barrionuevo said. "The main impact could be that it will create a black market which you typically see in countries, like Venezuela, which have restrictions on capital," he says. Mr Barrioneuvo says the measure could be dropped if it has a damaging effect on economic activity. "It is intended to be a permanent measure but I am not sure it can last too long."


Gordon Brown has issued a rallying cry, telling supporters the "stakes are too high" to stay at home or protest vote in the forthcoming general election. The chancellor said the vote expected to fall on 5 May will give a "clear and fundamental" choice between Labour investment and Conservative cuts. Speaking at Labour's spring conference in Gateshead, Mr Brown claimed the NHS was not safe in Conservative hands. He said Tory plans to cut 35bn tax would "cut deep into public service". To a packed audience at Gateshead's Sage Centre, the chancellor said the cuts proposed by shadow chancellor Oliver Letwin were the equivalent of sacking every teacher, GP and nurse in the country, he told activists. Laying into the Conservative's record in government he said: "I give you this promise with Labour, Britain will never return to the mistakes of ERM and 10% inflation, 15% interest rates, 3bn in lost reserves, 250,000 repossessed, one million in negative equity and three million unemployed. "Never again Tory boom and bust. "This will be the central dividing line at the election, between a Conservative Party taking Britain back and planning deep cuts of 35bn in our services, and a Labour government taking Britain forward, which on a platform of stability will reform and renew our hospitals, schools and public services and, I am proud to say, spend by 2008 60bn more." Turning to the economy, the chancellor pledged to continue economic stability and growth in a third term in power. He said after seven years Labour had transformed from a party not trusted with the economy to "the only party trusted with the economy". It was now a "party not just of employees, but of employers and managers", he said. In the speech which prompted a standing ovation from an audience clearly "warm" to Mr Brown he also promised to end teenage unemployment within the next five years. He also highlighted plans for 100% debt relief for the world's poorest countries, a national minimum wage for 16 and 17 year olds and the creation of a network of children's centres and flexibility in maternity leave. The prime minister is to take part later on Saturday in an interactive question and answer session, fielding queries sent in by e mail, text message and telephone as part of Labour's attempt to engage the public in their campaign.


The Ministry of Defence has been criticised over the soaring spending costs and growing delays of its top equipment projects. A National Audit Office report on the 20 biggest projects says costs have risen by 1.7bn in the past year. It says there is "little evidence" the MoD's performance had improved, despite the introduction of a "smart acquisition" policy six years ago. A senior defence official told the BBC lessons were being learned. The NAO's annual report showed the total cost of the 20 projects covered was expected to reach 50bn 14% higher than originally planned. The total delays amounted to 62 months, with average individual delays rising by three months. Sir John Bourn, head of the NAO, said the problems showed the principles of the scheme known as smart acquisition had not been consistently applied. "Many problems can be traced to the fact that the MoD has not spent enough time and resources in the assessment phase," the report says. The NAO found that projects launched since the start of the scheme were showing the same worrying tendencies as the older "legacy projects", such as the Eurofighter. A senior defence official, speaking to the BBC's defence correspondent Paul Adams, said that although the figures were still not good enough, the report reflected unrealistic expectations early on in the project cycle. This year's overspend was significantly less than last year's 3.1bn total, and the Defence Procurement Agency which is responsible for buying defence equipment was improving. Lord Bach, Minister for Defence Procurement, said he was "obviously still disappointed with the cost and time increases shown", but insisted that the Defence Procurement Agency had "undertaken a huge amount of work to expose any underlying problems on projects". The latest findings follow a string of critical reports issued within the last 12 months, and, according to our correspondent, contain few new surprises. Turning around the Defence Procurement Agency "was a little like trying to turn around a super tanker it takes a very long time indeed", he said. Our correspondent said it was the same projects, including the Joint Strike Fighter, the Nimrod and A400M aircraft and the Type 45 Destroyer, which were resonsible for the bulk of the cost over runs and delay. But he added some projects, such as the C 17 heavy lift aircraft and Successor Identification Friend or Foe (SIFF), were showing good performances.


Public trust in the handling of the economy can only be restored if Gordon Brown opens up his books for unbiased inspection, say the Lib Dems. City experts say there is a 10bn "black hole" in the public finances, a claim denied by the chancellor. Lib Dem spokesman Vince Cable said the public did not know who to believe and the National Audit Office should judge. Responding to the pre Budget report, Mr Cable also attacked Labour's "unfair" and over complicated taxes. In his report, Mr Brown insisted he was on course to meet his "golden rule" of borrowing only to invest, rather than for day to day spending, over the course of the economic cycle. Mr Cable said people did not know whether to believe the chancellor or the consensus among experts which said the rule would be broken. "There is an issue of credibility and trust," he said. "We cannot have a continuation of a situation where the chancellor sets his own tests and then marks them. "What we need is the equivalent of a thorough Ofsted inspection of the government's accounts." He asked what the government had to hide. Mr Cable also accused the chancellor of ducking tough choices. He argued: "There are serious challenges ahead from the falling dollar and from the rapid downturn in the UK housing market and rising personal debt. But they have not been confronted." Mr Brown confirmed he was setting aside another 520m for the conflicts in Iraq and Afghanistan. Mr Cable compared that new cost with the 500m needed for Britain's role in the entire first Gulf War when 80% of the bill had been met through help from European and Arab nations. He suggested keeping British troops in Iraq could cost another 1bn with the government also planning to spend at least 3bn for identity cards. The current economic climate meant Britain could not afford the "reckless, George Bush style tax cutting spree" planned by the Tories, he said. Instead, what was needed was simple and fair taxation rather than the "complete mess" produced by Mr Brown's endless tinkering. Mr Cable said 40% of all pensioners were now paying marginal tax rates of 50%. And one and a half million hard working families were paying 60% marginal tax rates. With that record, he asked why ministers attacked Lib Dem plans for a new 50% tax rate for the "very rich" those earning more than 100,000 a year. Mr Brown earmarked 1bn to help keep down council tax rises next year. But the Lib Dem spokesman questioned whether that money was being found from cuts to education and health. He urged the government to scrap the "grossly unfair" tax completely. The Lib Dems want it replaced with a local income tax. In response, Mr Brown stressed the Iraq money came from a reserve funds. It was because he had rejected previous Lib Dem proposals, such as scrapping the New Deal, that Britain's economy was successful, claimed Mr Brown.


Bank of America has been banned from suing Parmalat, the food group which went bust in 2003 after an accounting scandal. The bank along with investors, auditors and the group's managers wants damages for being a victim of fraud at the hands of the Italian firm. But a judge has barred Bank of America and two auditors from the case. The bank, and Italaudit formerly the Italian arm of auditor Grant Thornton face lawsuits and possible prosecution. A second auditor, Deloitte Touche, has also been banned from the case. Grant Thornton now rid of the Italian unit at the centre of the case is still being permitted to sue, as are Consob, Italy's stock market regulator, hundreds of small investors and Parmalat's new managers. Parmalat collapsed in December 2003 after it emerged that the 4bn euros ( 5.2bn; 2.8bn) it supposedly held in a Bank of American offshore account did not in fact exist.


The first minister's statement that it was okay to get drunk "once in a while" has diverted attention from the real issues, it has been claimed. Jack Law, chief executive of Alcohol Focus Scotland, said Jack McConnell's comment was "ill advised". The media attention had helped to move the focus from Scotland's binge drinking problems, Mr Law said. Scotsman journalist Hamish MacDonell said he believed the bigger picture had been "obscured" by the remark. Mr McConnell was speaking on Monday to more than 100 secondary pupils from schools in the Highlands about the problems of binge drinking and drink promotions. The one sentence comment was immediately criticised by the Scottish National Party which accused him of encouraging young people to get drunk. But the Scottish Executive has insisted Mr McConnell was speaking about adults and his comments were "a recognition that people will get drunk". Mr MacDonell, political editor of The Scotsman, said: "I think we have to say right at the outset that this was a very stupid and ill advised remark by the first minister. "If you come out with something like this, saying that by all means get drunk, then you will be pilloried for it." However, he added that "perhaps Mr McConnell could feel rightly aggrieved about the coverage". Mr MacDonell said: "I think the problem here is that he did say a lot more things about binge drinking and under age drinking. "But that whole side of things has been lost in the furore over one sentence. I understand why, but I think there is a much bigger message here that has been obscured." Mr Law, from voluntary body Alcohol Focus Scotland, believed damage had been done to Scotland's fight against binge drinking. He said he accepted that young people drank and they did have problems with drink. Mr Law added: "I think the remark was ill advised but these remarks are blown out of all proportion and they so easily misrepresent what we are trying to do in Scotland. "We don't want to preach to young people, but we need to acknowledge that they do drink problematically. "This diverts us from the real issues which are about promoting responsibility and reducing harm and indeed tackling our drinking culture which is a culture about binge drinking and drunkenness." He said it was vital that young people were properly informed about the risks incurred to themselves and others when they got drunk. Mr MacDonell said that the first minister should know by now that if he said things which were "off the mark", they were bound to "come back and bite him". He added: "Here, Mr McConnell was talking in the Highlands to 100 teenagers and every word he said was put out on a webcast by the Scottish Executive and then looked at by other politicians and reporters. "I think in this instance he has done a lot of really good things and he will be regretting this remark." The Scottish National Party's Holyrood leader Nicola Sturgeon wrote to Mr McConnell on Tuesday accusing him of an error of judgement and calling for him to apologise for his "ill judged comment" and withdraw it immediately. In a furious response, the first minister said his comments had been distorted and taken out of context. He told Ms Sturgeon: "It is disappointing that you have contributed to this distortion by saying it is staggering that I 'should encourage young people to get drunk'. "That is completely untrue. Perhaps it would have been wiser for you to find out what was actually said before you rushed to represent my position, undermine the convener of education at Highland Council and insult the intelligence of the young people I spoke with all for the sake of a simple soundbite."


Ryan Giggs will captain Wales as he wins his 50th cap in Wednesday's friendly against Hungary in Cardiff. John Toshack, in his first game as coach after succeeding Mark Hughes, admits he is surprised that Giggs has only just reached the landmark. "With the games he's played for United, proportionately it doesn't seem that many for Wales," Toshack said. "But he's one of the greatest of all Welsh internationals and on his 50th cap it's appropriate he's captain." Giggs admits he had briefly considered retirement from the international game, but is now targetting playing for Wales in the 2008 European Championships. The Manchester United wing revealed how club manager Sir Alex Ferguson talked him into extending his Wales career. "I briefly discussed my international future with Sir Alex, but he urged me to carry on," Giggs said. "He feels, like myself, that I have no weight problems and keep myself fit, so in three or four years' time I will be able to play in the European finals if we get there. "The manager has always wanted me to play for my club and country and he was keen for me to continue because I am fit enough." Giggs admits he was wavering and considering joining the likes of former Wales skipper Gary Speed and United team mate Paul Scholes in committing the remaining years of his career to club football. But Giggs is now focussed on making the Toshack era even more successful than the time Hughes spent at the helm. The Manchester United winger won his first cap as a 17 year old in 1991, an away loss to Germany, and now faces his landmark appearance at the age of 31. With Giggs leading Wales out against Hungary, there is every chance that he will become the permanent successor to Speed. However, Toshack refused to reveal whether he sees Giggs as a long term option. "For this particular game I think it is appropriate that Ryan Giggs will be captain, it's his 50th cap and he's known for some time about that," Toshack said. On Wednesday night Toshack takes charge of his first match since replacing Hughes, and Giggs said: "It's my 50th cap and I am looking forward to it, and I hope to play a lot more times from here on in. "It's important to be here, all the players feel the same. It's a new start and all the top players certainly see it as important. "I see myself leading by example, it is something I have taken on for Wales as well as United these past few seasons. "The way John is looking at things, he is aiming to build his side around the experienced lads right up to the next tournament, the Euro 2006 event. "I have told John I will be around for the next European tournament, by then I will be 35 so hopefully I will still be okay. "A lot can happen, but I'm hoping to be around." Giggs' own personal future at Old Trafford is still up in the air as he has yet to reach agreement on a new contract, with Manchester United offering one extra year and Giggs seeking two. "I have put the contract thing to the back of my mind at the moment," said Giggs. "It is an important period for the club and I am just concentrated on that. "I've heard the suggestions, hopefully there is a two year deal about to be offered because that is what I am looking for, to get it sorted out. "I'm enjoying my football, the way United have been playing and my own form, you have to enjoy it. "We have massive games coming up: Manchester City this week, then the Everton cup tie, followed by AC Milan in the Champions League, and my first Wales game under John Toshack, so it's an important time."


Tottenham manager Jacques Santini has resigned for "personal reasons". The former France manager moved to White Hart Lane this summer but now wants to return to France. Santini said: "My time at Tottenham has been memorable and it is with deep regret that I take my leave. I wish the club and the supporters all the best. "Private issues in my personal life have arisen which caused my decision. I very much hope that the wonderful fans will respect my decision." He added: "I should like to thank (sporting director) Frank Arnesen and (chairman) Daniel Levy for their understanding." Assistant coach Martin Jol has been put in temporary charge and will take care of team affairs for Saturday's Premiership match against Charlton. Arnesen said the club were sad to see Santini go: "We are obviously disappointed that Jacques is leaving us. We fully respect his decision. "I can assure you that the club will act swiftly to minimise the impact of Jacques' departure. "Our priority is to ensure that this season's performance remains unaffected by this move. "I shall make a further statement on Monday, clarifying our position. We wish Jacques well."


Citizenship ceremonies could be introduced for people celebrating their 18th birthday, Charles Clarke has said. The idea will be tried as part of an overhaul of the way government approaches "inclusive citizenship" particularly for ethnic minorities. A pilot scheme based on ceremonies in Australia will start in October. Mr Clarke said it would be a way of recognising young people reaching their voting age when they also gain greater independence from parents. Britain's young black and Asian people are to be encouraged to learn about the nation's heritage as part of the government's new race strategy which will also target specific issues within different ethnic minority groups. Officials say the home secretary wants young people to feel they belong and to understand their "other cultural identities" alongside being British. The launch follows a row about the role of faith schools in Britain. On Monday school inspection chief David Bell, accused some Islamic schools of failing to teach pupils about their obligations to British society. The Muslim Council of Britain said Ofsted boss Mr Bell's comments were "highly irresponsible". The Home Office started work on its Community Cohesion and Race Equality Strategy last year and the outcome, launched on Wednesday, is called 'Improving Opportunity, Strengthening Society'. It is aimed at tackling racism, exclusion, segregation and the rise in political and religious extremism. "It represents a move away from the one size fits all approach to focus on specifics within cultural groups," said a Home Office spokesman. "It is not right to say that if you are from a black or ethnic minority group you must be disadvantaged." The spokesman highlighted specific issues that affect particular communities for example people of south Asian origin tend to suffer from a high incidence of heart disease. "It is about drilling down and focusing on these sorts of problems," the spokesman added. Launching the initiative Mr Clarke said enormous progress had been made on race issues in recent years. He added: "But while many members of black and minority ethnic communities are thriving, some may still find it harder to succeed in employment or gain access to healthcare, education or housing. "This strategy sets out the government's commitment to doing more to identify and respond to the specific needs of minorities in our society." Some 8% of the UK population described themselves as coming from a non white ethnic minority in the 2001 Census. The Downing Street Strategy Unit in 2003 said people from Indian and Chinese backgrounds were doing well on average, often outperforming white people in education and earnings. But those of Pakistani, Bangladeshi and black Caribbean origin were significantly more likely to be unemployed and earn less than whites, it said. The Home Office wants more initiatives which try to promote a sense of belonging by encouraging young people to take part in voluntary work. The programmes are designed to support the citizenship lessons already taking place in schools.


The Jamaican government is regaining control of Air Jamaica in an bid to help the ailing company out of its financial difficulties. The firm has failed to make money since the state sold a majority stake to hotel tycoon Gordon Stewart in 1994. In common with many carriers, Air Jamaica, with debts of 560m ( 291m), has been hit by high fuel costs and the impact of the 11 September attacks. The company will be restructured with the aim of finding a new buyer. "The administration is committed to a viable national airline that will serve as a major catalyst for our economy," said Finance Minister Omar Davies. The 35 year old airline transports about 55% of all passengers to the island and its pilots are reportedly among the best paid in the industry, with senior members of staff earning in excess of 234,000 a year.


Indonesia no longer needs the debt freeze offered by the Paris Club group of creditors, Economics Minister Aburizal Bakrie has reportedly said. Indonesia, which originally accepted the debt moratorium offer, owes the Paris Club about 48bn ( 25.5bn). Mr Bakrie told the Bisnis Indonesia newspaper that a 1.7bn donors' aid package meant that the debt moratorium was unnecessary. This aid comes on top of a previously pledged 3.4bn package. Most of this 'normal aid' would be used to finance the country's budget deficit. The Indonesian Economics Minister explained that the money 1.2bn in grants and 500m in soft loans was for the rebuilding of Aceh province, which was badly hit by the tsunami of 26 December. Nevertheless, one of Mr Bakrie's deputies, Mahendra Siregar, told AFP news agency that Indonesia was still considering the offer by the Paris Club of rich creditor nations to temporarily suspend its debt payments. "What is true is that we are still discussing... the Paris Club decision to find out more details such as how much of our debt will be subject to a moratorium. That's how far we are at this stage," said Mr Siregar. The 19 member countries of the Paris Club are owed about 5bn this year in debt repayments by nations affected by the Indian Ocean tsunami. Indonesia, Sri Lanka and the Seychelles accepted the Paris Club offer, which was criticised by some aid groups as being too little. Thailand and India have however declined the offer, with Thailand prefering to keep up with its payments while India said it would prefer to rely on its own resources rather than on international aid. Putting off payments may lower a country's rating among financial organisations, making it more expensive and more difficult for them to borrow money in the future, analysts said. Separately, the Indonesian government has said it will announce monthly how much it has received in foreign donations and how it has spent the money. Welfare Minister Alwi Shihab told AP news agency that this announcement should allay suspicion of official corruption in relief operations.


Marat Safin admitted he thought he was suffering another Australian Open final nightmare when he lost the opening set to Lleyton Hewitt. The Russian, who lost the 2002 and 2004 finals, fought back brilliantly to win 1 6 6 3 6 4 6 4. "I was nervous and I couldn't play tennis," said Safin. "He started really well. He wasn't as nervous as I was because I was thinking of the two finals that I played and wasn't successful." He added: "You really have to deal with the pressure because normally it never happens but when you come to the final you are so tight because you want to win. "I tried to play some tennis but I couldn't. He has huge experience, he's won two Grand Slam titles, he's won 24 titles, he's a great player and he deals with pressure." From 4 1 down in the third set, Safin played some of his best tennis to reel off seven games and take control of the match. "In the third set, just all of a sudden, it all turn around completely in a way I couldn't expect," said Safin. "Because he made a couple of mistakes, I was a little bit lucky at some point, then the confidence came back and I was back in the game." And the Russian revealed that the victory, and his semi final win over world number one Roger Federer, had given him a massive boost for the future. "You get huge confidence because Roger is a great player," said Safin. "Once I beat him, and then Lleyton, it's like you get so much confidence in yourself that you really can play great. "You can win big titles and you can beat huge players in the finals and semi finals."


The UK economy probably grew at a faster rate in the third quarter than the 0.4% reported, according to Bank of England deputy governor Rachel Lomax. Private sector business surveys suggest a stronger economy than official estimates, Ms Lomax said. Other surveys collectively show a rapid slowdown in UK house price growth, she pointed out. This means that despite a strong economic growth, base rates will probably stay on hold at 4.75%. Official data comes from the Office for National Statistics (ONS). Though reliable, ONS data takes longer to publish, so now the BoE is calling for faster delivery of data so it can make more effective policy decisions. "Recent work by the Bank has shown that private sector surveys add value, even when preliminary ONS estimates are available," Ms Lomax said in a speech to the North Wales Business Club. The ONS is due to publish its second estimate of third quarter growth on Friday. "The MPC judges that overall growth was a little higher in the third quarter than the official data currently indicate," Ms Lomax said. The Bank said successful monetary policy depends on having good information. Rachel Lomax cited the late 1980s as an example of a time when weak economic figures were published, but substantially revised upwards years later. "The statistical fog surrounding the true state of the economy has proved a particularly potent breeding ground for policy errors in the past," she said. Improving the quality of national statistics is the single the best way of making sure the Monetary Policy Committee (MPC) makes the right decisions, she said. The Bank of England is working in tandem with the ONS to improve the quality and speed of delivery of data. Her remarks follow criticism from the House of Lords Economic Affairs Committee, which said the MPC had held interest rates too high given that inflation was way below the 2% target. A slowdown in the housing market and this year's surge in oil prices has made economic forecasting all the more tricky, leading to a more uncertain outlook. "This year rising oil prices and a significant slowdown in the housing market have awoken bad memories of the 1970s and 1980s," Ms Lomax said. "The MPC will be doing well if it can achieve the same stability over the next decade as we have enjoyed over the past 10 years." Decisions on interest rates are made after the MPC gathers together the range of indicators available every month. The clearest signals come when all indicators are pointing the same direction, Ms Lomax intimated. "In economic assessment, there is safety in numbers."


The former head of US medical services firm HealthSouth overstated earnings and assets to boost the company's share price, it was claimed in court. Richard Scrushy, 52, is accused of "directing" a 2.7bn ( 1.4bn) accounting fraud at the company he co founded in Alabama in 1984. Prosecutors said he was motivated by wealth spending about 200m between 1996 and 2002 while earning much less. Defence lawyers said Mr Scrushy had been deceived by other executives. Several former HealthSouth employees have already pleaded guilty to fraud and are expected to give evidence against Mr Scrushy. "We will present evidence that Richard Scrushy knew about the conspiracy, that he participated in the conspiracy and that he profited," prosecutor Alice Martin told the court. Mr Scrushy is the first chief executive to be tried for breaching the Sarbanes Oxley Act a law introduced in the wake of the Enron and WorldCom frauds which obliges corporate bosses to vouch for the accuracy of their companies' results. Among the charges he faces are conspiracy to commit fraud, filing false statements and money laundering. After federal agents raided HealthSouth's offices in March 2003, the company said none of its past financial statements could be relied on. The firm has since reorganised its board and management team and currently operates about 1,400 health clinics.


German investment bank Deutsche Bank has challenged the right of Yukos to claim bankruptcy protection in the US. In a court filing on Tuesday, it said the Russian oil giant has few Texas ties beyond bank accounts and a Texas based finance chief. Deutsche Bank claimed Yukos had artificially manufactured a legal case to stop the sale of its main asset. It had wanted to help fund Gazprom's plans for a 10bn ( 5.18bn) bid for Yukos unit Yuganskneftegas. Deutsche Bank would have earned large fees from the deal, which could not be carried out because US chapter 11 bankruptcy rules made the Kremlin's auction of Yuganskneftegas on 19 December illegal under US law. But the US bankruptcy court judge in Texas granted Yukos an injunction that barred Gazprom and its lenders from taking part. Yuganskneftegas will ultimately end up with Gazprom. The winning bidder at the auction was a previously unknown firm, Baikal Finance Group, which was snapped up days later by Rosneft, a Russian oil firm that is in the process of merging with Gazprom. The effect of these transactions is to renationalise Yuganskneftegas. Deutsche Bank contends Yukos filed for bankruptcy earlier this month in Texas in a desperate and unsuccessful bid to stave off the 19 December auction of its top unit by the Russian government, which was in a tax dispute with Yukos. "This blatant attempt to artificially manufacture a basis for jurisdiction constitutes cause to dismiss this case," Deutsche Bank said in its court filing. Mike Lake, a spokesman for Yukos' lawyers, said on Tuesday that the company stands by its legal action. Yukos is confident of its right to US bankruptcy protection, and "we are prepared to be back in court defending that position again," he said. Yukos has said it intends to seek 20bn in damages from the buyer of Yuganskneftegas once the sale finally goes through. In its filing, Deutsche Bank said Houston was "a jurisdiction in which Yukos owns no real or personal property and conducts no business operations." It also said the US bankruptcy court should not become involved in "a tax dispute between the Federation and one of its corporate citizens". It suggested the European Court or an international arbitration tribunal were more appropriate jurisdictions for the legal fight between Russia and Yukos. The next hearing in the bankruptcy is expected on 6 January. Analysts believe the tax dispute between the Russian government and Yukos is partly driven by Russian president Vladimir Putin's hostility hostility to the political ambitions of ex Yukos boss Mikhail Khordokovsky. Mr Khodorkovsky is in jail, and on trial for fraud and tax evasion.


An ex Russian intelligence officer who risked his life spying for MI6 is entering the seventh week of a hunger strike near 10 Downing Street. Viktor Makarov, 50, claims he has been betrayed by the British authorities, who promised he would live like an "average British citizen". But despite a 65,000 settlement four years ago, he says he has been denied defector status and a decent pension. Other ex Russian spies have been given civil service pensions. "Hunger strike is a weapon of last resort. It can work only with determination and of course the realisation of the righteousness of your case without that it will not work," Mr Makarov told the BBC's Newsnight programme. "Since I came to this country two batches of promises have been made and broken one after the other." Oleg Gordievsky, a senior KGB officer who became a secret agent for the British, said he was "very happy" with the way the government have treated him since him since he defected in 1985. Commenting on Mr Makarov's case, he said: "The British state is not a fat cow it is impossible to come here and demand give me more money every week." But Mr Makarov's case has been backed by David Kahn a former Yale historian, and a leading expert on code breaking, who has confirmed his information was valuable to the Western allies. "I believe the government of the United Kingdom, which in that respect was probably the same as most other power authorities took the information that Victor Makarov had, wrung him dry and left him to hang out in the cold," Mr Kahn said. Mr Makarov joined the KGB in 1970s Russia, as an idealistic 20 year old. One of his fellow pupils at intelligence school was Vladimir Putin. At KGB headquarters in Moscow, he was posted to the secret 16th directorate which decoded intercepted diplomatic traffic from the West. By the 1980s he had risen to the rank of senior lieutenant and was privy to the thoughts of Western powers. But he had became deeply disenchanted with the Soviet regime fuelled by its repression both at home and in Poland. Through his English teacher, he made an approach to M16 and then began passing secrets to the British intelligence service. He spied for MI6 for two years before being betrayed by a friend and sent to Perm 35 a Soviet hard labour camp in the Artic circle. Within a week of his release in 1992, he made contact with the British authorities he'd been spying for, who arranged a meeting between him and an MI6 agent in Latvia. He was given a false passport, and he says, promised that he would be given the chance to live like an average UK citizen. But after arriving in London 13 years ago, he feels this promise has not been fulfilled. After long periods of living in bedsits, with deteriorating health, four years ago he took legal action against the government and settled for 65,000 to buy a small house. But he says he will remain on hunger strike until he receives a decent pension and the right to work, something he feels he has been denied because the authorities do not trust him. Government sources told the BBC they had reached a final settlement with the former spy, which he has been able to appeal to security and intelligence tribunals.


The Japanese economy has officially gone back into recession for the fourth time in a decade. Gross domestic product fell by 0.1% in the last three months of 2004. The fall reflects weak exports and a slowdown in consumer spending, and follows similar falls in GDP in the two previous quarters. The Tokyo stock market fell after the figures were announced, but rose again on a widespread perception that the economy will recover later this year. On Wednesday, the government revised growth figures from earlier in 2004 which, when taking into account performance in the most recent period, effectively tips Japan into recession. A previous estimate of 0.1% growth between July and September was downgraded to a 0.3% decline. A recession is commonly defined as two consecutive quarters of negative growth, although the Japanese government takes other factors into account when judging the status of its economy. Figures released by the government's Cabinet Office showed that GDP, on an annualised basis, fell 0.5% in the last three months of 2004. However, politicians remain upbeat about prospects for an economic boost later in the year. "The economy has some soft patches but if you look at the bigger picture, it is in a recovery stage," said Economic and Fiscal Policy Minister Heizo Takenaka. Gross domestic product measures the overall value of goods and services produced in a country. "The economy must be assessed comprehensively and we cannot look at GDP alone," Mr Takenaka stressed. Ministers pointed to the fact that consumer spending had been depressed by one off factors such as the unseasonably mild winter. Analysts said the figures were disappointing but argued that Japan's largest companies had been recording healthy profits and capital spending was on the rise. Japan's economy grew 2.6% overall last year fuelled by a strong performance in the first few months and is forecast to see growth of 2.1% in 2005. However, the economy's fragile recovery remains dependent on an upturn in consumer spending, a fall in the value of the yen and an improvement in global economies. "The results came in at the lower end of expectations but we shouldn't be too pessimistic about the current state and the outlook for the economy," said Naoki Iizuka, senior economist at the Dai ichi Life Research Institute. Japan's economy has seen stretches of moderate growth over the past decade but has periodically slipped back into recession.


Australia is raising its benchmark interest rate to its highest level in four years despite signs of a slowdown in the country's economy. The Reserve Bank of Australia lifted interest rates 0.25% to 5.5%, their first upwards move in more than a year. However, shortly after the Bank made its decision, new figures showed a fall in economic growth in the last quarter. The Bank said it had acted to curb inflation but the move was criticised by some analysts. The rate hike was the first since December 2003 and had been well flagged in advance. However, opposition parties and some analysts said the move was ill timed given data showing the Australian economy grew just 0.1% between October and December and 1.5% on an annual basis. The figures, representing a decline from the 0.2% growth in GDP seen between July and September, were below market expectations. Consumer spending remains strong, however, and the Bank is concerned about growing inflationary pressures. "Over recent months it has become increasingly clear that remaining spare capacity in the labour and goods markets is becoming rather limited," said Ian Macfarlane, Governor of the Reserve Bank. At 2.6%, inflation remains within the Bank's 2 3% target range. However, exports declined in the second half of 2004, fuelling a rise in the country's current account deficit the difference in the value of imports compared to exports to a record Australian dollar 29.4bn. The Australian government said the economy remained strong with unemployment at a near 30 year low. "The economy has been strong and it is properly moderating but it doesn't look to me like it's slowing in any unreasonable way," said Treasurer Peter Costello. Stock markets had factored in the likelihood of a rate rise but analysts still expressed concern about the strength of the economy. "That 1.5% annual growth rate is the lowest we have seen since the post election slump we saw back in 2000 1," said Michael Blythe, chief economist at the Commonwealth Bank of Australia. "This suggests the economy really did slow very sharply in the second half of 2004."


Three years after a gruelling economic crisis, Turkey has dressed its economy to impress. As part of a charm offensive ahead of 17 December, when the European Union will decide whether to start entry talks Turkey's economic leaders have been banging the drum to draw attention to recent achievements. The economy is growing fast, they insist. Education levels among its young and large population are rising. Unemployment levels, in percentage terms, are heading fast towards single digits. Inflation is under control. A new law to govern its turbulent banking system is on the cards. The tourism industry is booming and revenues from visitors should more than double to 21bn ( 10.8bn) in three years. Moreover, government spending is set to be frozen and a burdensome social security deficit is being tackled. Income and corporate taxes will be cut next year in order to attract 15bn of foreign investment over the next three years. A loan restructuring deal with the International Monetary Fund (IMF) is pretty much in the can. And following recent macroeconomic restructuring efforts, its currency is floating freely and its central bank is independent. The point of all this has been to convince Europe's decision makers that rather than being a phenomenally costly exercise for the EU, allowing Turkey in would in fact bring masses of economic benefits. "The cake will be bigger for everybody," said Deputy Prime Minister Abdullatif Sener earlier this month. "Turkey will not be a burden for the EU budget." If admitted into the EU, Turkey would contribute almost 6bn euros ( 8bn; 6bn) to its budget by 2014, according to a recent impact study by the country's State Planning Organisation. As Turkey's gross domestic output (GDP) is set to grow by 6% per year on average, its contribution would rise from less than 5bn euros in 2014 to almost 9bn euros by 2020. Turkey could also help alleviate a labour shortage in "Old Europe" once its population comes of age. By 2014, one in four Turks or about 18 million people will be aged 14 or less. "A literate and qualified Turkish population," insisted Mr Sener, "will make a positive impact on the EU." This runs contrary to the popular view that Turkey is getting ready to dig deep into EU taxpayers' wallets. However, Turkey's assertions are confirmed by Brussels' own impact studies, which indeed say that Turkish membership would be good news for the EU economy. But only over time. Costs are projected to be vast during the early years of Turkey's membership, with subsidies alone estimated to exceed 16.5bn euros and, according to some predictions, balloon to 33.5bn euros. This would include vast agricultural subsidies and regional aid, though such payments should decline as the country's farm sector, which currently employs one in three Turks, would employ just one in five by 2020. Such high initial expenses would be coupled with risks that the benefits flagged up by Turkey's government would never be delivered, say those who feel the Turkish project should be shunned. Some fear that rather than providing an educated, sophisticated labour force for Europe at large, the people who will leave Turkey to seek work abroad will be poor, uneducated and plentiful. More recently, less palatable concerns at least in liberal European circles have been voiced, with senior EU or member state officials talking darkly of a "river of Islam", an "oriental" culture and a threat to Europe's "cultural richness". Of course, many opponents are politically motivated their views ranging from xenophobic prejudices about the country's Muslim traditions to well documented concerns about the government's human rights record. Yet their economic arguments should not be dismissed out of hand. Critics insist that much of the optimism about Turkey's economic roadmap has been over egged an argument amplified by a 134% rise in the country's current account deficit to 10.7bn during the first 10 months of this year. The country's massive debt which includes 23bn owed to the IMF and billions borrowed via the international bond markets also remains a major obstacle to its ambition of joining the EU. "In the new member states of the European Union, gross public debt is typically about 40% of gross domestic product," says Reza Moghadam, assistant director of the IMF's European Department. "At about 80% of GDP, Turkey's gross debt is double that figure." Turkey's debts have largely arisen from its efforts to push through banking reform after a run on the banks in 2001 caused the country's devastating recession. "There is no question that although Turkey is doing much better than in the past, it remains quite vulnerable," says Michael Deppler, director of the IMF's European Department. "Its debt is far too high for an emerging economy." A key factor for EU decision makers should be whether or not Turkey has met its economic criteria. But economics is not a science. And although the state of Turkey's economy is important, as is its pace of reform, the final decision on 17 December will be taken by politicians who will, of course, be guided by their political instincts.


Flanker Colin Charvis is unlikely to play any part in Wales' final two games of the Six Nations. Charvis has missed all three of Wales' victories with an ankle injury and his recovery has been slower than expected. "He will not figure in the Scotland game and is now thought unlikely to be ready for the final game," said Wales physio Mark Davies. Sonny Parker is continuing to struggle with a neck injury, but Hal Luscombe should be fit for the Murrayfield trip. Centre Parker has only a "slim chance" of being involved against the Scots on 13 March, so Luscombe's return to fitness after missing the France match with hamstring trouble is a timely boost. Said Wales assistant coach Scott Johnson: "We're positive about Hal and hope he'll be raring to go. "He comes back into the mix again, adds to the depth and gives us other options. " Replacement hooker Robin McBryde remains a doubt after picking up knee ligament damage in Paris last Saturday. "We're getting that reviewed and we should know more by the end of the week how Robin's looking," added Johnson. "We're hopeful but it's too early to say at this stage." Steve Jones from the Dragons is likely to be drafted in if McBryde fails to recover.


A US defence and telecommunications company has agreed to pay 28.5m after admitting bribery in the West African state of Benin. The Titan corporation was accused of funnelling more than 2m into the 2001 re election campaign of President Mathieu Kerekou. At the time, Titan was trying to get a higher price for a telecommunications project in Benin. There is no suggestion that Mr Kerekou was himself aware of any wrongdoing. Titan, a California based company, pleaded guilty to falsifying its accounts and violating US anti bribery laws. It agreed to pay 13m in criminal penalties, as well as 15.5m to settle a civil lawsuit brought by the US financial watchdog, the Securities and Exchange Commission (SEC). The SEC had accused Titan of illegally paying 2.1m to an unnamed agent in Benin claiming ties with President Kerekou. Some of the money was used to pay for T shirts with campaign slogans on them ahead of the 2001 election. Shortly after the poll, which Mr Kerekou won, Benin officials agreed to quadruple Titan's management fee. Prosecuting attorney Carol Lam said: "All US companies should take note that attempting to bribe foreign officials is criminal conduct and will be appropriately prosecuted." The company says it no longer tolerates such practices. Under the US Foreign Corrupt Practices Act, it is a crime for American firms to bribe foreign officials.


Older people and women are increasingly taking charge of protecting home computers against malicious net attacks, according to a two year study. The number of women buying programs to protect PCs from virus, spam and spyware attacks rose by 11.2% each year between 2002 and 2004. The study, for net security firm Preventon, shows that security messages are reaching a diversity of surfers. It is thought that 40% of those buying home net security programs are retired. For the last three years, that has gone up by an average of 13.2%. But more retired women (53%) were buying security software than retired men. The research reflects the changing stereotype and demographics of web users, as well as growing awareness of the greater risks that high speed broadband net connections can pose to surfers. The study predicts that 40% of all home PC net security buyers will be women in 2005. They could even overtake men as the main buyers by 2007, if current rates persist, according to the research. "I think older people have become more vigilant about protecting their PCs as we tend to be more cautious and want an insurance policy in case something does go wrong", said one over 60 woman who took part in the research. "You started off with young male stereotype computer users for last 10 years," Paul Goosens, head of Preventon told the BBC News website. "Now we are seeing real people both sexes and very often it is women who have more access at home." But net service providers still need to take more responsibility in making sure people are educated about net threats before they go online, particuarly if they are new to broadband, he said. Programs also need to be tailored so that they can be installed by dial up users with a slower connection too, said Mr Goosens. Security software should be easy to use, with simple interfaces and instructions written in non technical language, he added. The nature of the security threats are also becoming more than just about e mail viruses. High profile complaints about rogue diallers, and spyware or other programs that surreptitiously install themselves on computers, have also raised awareness about the need to have a combination of anti virus, firewall and spyware removal programs too. Without protection, these kinds of programs can be picked up just through surfing the web normally. More than 30,000 PCs a day globally are being recruited into networks that spread spam and viruses, a study from security from Symantec showed last year. Viruses written to make headlines by infecting millions are also getting rarer, according to net security experts. Programs are being unleashed to directly profit criminal gangs, many based in Eastern Europe, over those which are designed to show off technical skills or cause nuisance. The research shows that more people are taking these criminal net threats more seriously because, said Mr Goosens, they are reported in the press much more. "You are seeing older users being educated by the media and are seeing them picking up on this threat. They are asking the right questions," he explained. "It is more likely the younger users who naively assume that because they are using a reputable service provider, that they are safe to connect to the net." An unprotected computer on a broadband connection can be breached and infected with viruses or spyware within minutes. By the end of the year it is thought that more than 30% of UK homes will have broadband net access. In July last year, the number of UK households accessing the net via broadband surpassed those using dial up for the first time, according to the Office of National Statistics.


US industrial production increased for the 21st month in a row in February, but at a slower pace than in January, official figures show. The Institute for Supply Management (ISM) index fell to 55.3 in February, from an adjusted 56.4 in January. Although the index was lower than in January, the fact that it held above 50 shows continued growth in the sector. "February was another good month in the manufacturing sector," said ISM survey chairman Norbert Ore. "While the overall rate of growth is slowing, the overall picture is improving as price increases and shortages are becoming less of a problem. Exports and imports remain strong," he said. Analysts had expected February's figure to be stronger than January's and come in at 57. Of the 20 manufacturing sectors surveyed by ISM, 13 reported growth. They included the textiles, apparel, tobacco, chemicals and transportation sectors. The ISM's index of national manufacturing activity is compiled from the responses of purchasing executives at more than 400 industrial companies.


Gamers have bought almost all of the first batch of Sony's new PlayStation Portable (PSP) games console, which went on sale in Japan on Sunday. Thousands of people queued for hours to get hold of one of the 200,000 PSPs which were shipped to retailers. The handheld console can play games, music and movies and goes on sale in Europe and North America next year. Despite the demand Sony said it would not increase the 500,000 strong stock of PSPs it plans to ship by year's end. Sony says it intends to ship three million of the consoles by March 2005. The company is hoping to challenge the dominance of Nintendo in the handheld market. Nintendo released its new DS console earlier this year and has already raised shipment targets for the device by 40%. The PSP is selling in Japan for 19,800 yen ( 188; 98) while Nintendo's DS console sells in the US and Japan for 150 ( 78). Nintendo's goal is to ship 5 million of its new Nintendo DS handheld consoles by March 2005.


France has become the last big European country to launch a digital terrestrial TV (DTT) service. Initially, more than a third of the population will be able to receive 14 free to air channels. Despite the long wait for a French DTT roll out, the new platform's backers hope to emulate the success of its UK free to air counterpart, Freeview. Recent figures from the UK's regulator Ofcom showed Freeview was more popular than the Sky digital satellite service. In the three months to September 2004, almost five times as many people signed up to the UK's free to air DTT service compared with Sky. Almost 60% of UK households have gone digital on at least one television set through cable, satellite or Freeview. The French DTT platform is known as TNT, which stands for TV numerique terrestre or digital terrestrial television. But it is being branded as Television Numerique pour Tous, or "digital television for all". TNT is a joint venture between public broadcaster France Televisions and a handful of cable and satellite operators. Digital terrestrial TV will launch as a free to air platform to start with, adding pay TV channels later. Thirty five contenders have bid for an additional eight frequencies on top of the 14 already allocated. "A couple of years ago, DTT had a bad image," said Olivier Gerolami, chief operating officer of TNT. "But everyone's impressed with DTT in the UK, Italy and Germany, and they realise it is a very good idea. "France is the poorest market in Europe in terms of free to air national channels, so it has the potential to be one of the biggest DTT markets," Mr Gerolami added in remarks quoted by the US entertainment industry paper Variety. TNT aims to reach 35% of France's population at launch, from 17 transmission sites. The transmission area will initially include Paris, Lille, Lyon and Toulouse. Eventually there will be 115 sites reaching over 80% of homes. Digital terrestrial set top boxes are available from as little as 70 euros ( 50). A recent survey by Mediametrie found that 70% of people interviewed were aware of DTT, and 25% were planning to buy a digital receiver. Consumer electronics companies such as Nokia, Sagem, Sony and Thomson are gearing up for production. The Conseil Superieur de l'Audiovisuel (CSA), the French broadcasting regulator, said: "Following the recent success of Freeview in the UK, some manufacturers are optimistic about sales prospects". Media analysts believe that initially the majority of viewers will buy inexpensive set top boxes that are unable to support interactive services. The CSA said the current aim of reaching 85% of the population by 2007 was achievable, but the future of the remaining TV viewers required action by the public sector. For the most part, they are people living in mountainous or border areas, which will remain beyond the reach of digital terrestrial TV for years. Up to 15 pay TV channels will launch on DTT between September 2005 and March 2006. Leading pay TV operators Canal Plus and TPS have submitted bids to market bouquets of channels. Free to air services will be broadcast in MPEG 2 format. But pay TV operators will be allowed to broadcast in MPEG 4 a much better compression technology which will potentially allow for high definition (HD) subscription services in the future. TNT expects between 700,000 and one million DTT set top boxes to be sold in 2005. "It is difficult to tell how quickly it will take off," said Mr Gerolami, "but we're optimistic that it will revolutionise television in France." Other analysts were less optimistic, predicting consumers would now be less likely to sign up for pay TV subscriptions. "We think free DTT could put brakes on the underlying growth of pay TV in France," said Henri de Bodinat, vice president of the Arthur D. Little consultancy.


Computer giant IBM says 500 of its software patents will be released into the open development community. The move means developers will be able to use the technologies without paying for a licence from the company. IBM described the step as a "new era" in how it dealt with intellectual property and promised further patents would be made freely available. The patents include software for a range of practices, including text recognition and database management. Traditional technology business policy is to amass patents and despite IBM's announcement the company continues to follow this route. IBM was granted 3,248 patents in 2004, more than any other firm in the US, the New York Times reports. For each of the past 12 years IBM has been granted more US patents than any other company. IBM has received 25,772 US patents in that period and reportedly has more than 40,000 current patents. In a statement, Dr John E. Kelly, IBM senior vice president, Technology and Intellectual Property, said: "True innovation leadership is about more than just the numbers of patents granted. It's about innovating to benefit customers, partners and society. "Our pledge today is the beginning of a new era in how IBM will manage intellectual property." In the past, IBM has supported the non commercial operating system Linux although critics have said this was done only as an attempt to undermine Microsoft. The company said it wanted to encourage other firms to release patents into what it called a "patent commons". Adam Jollans, IBM's world wide Linux strategy manager, said the move was a genuine attempt to encourage innovation. "We believe that releasing these patents will result in innovation moving more quickly. "This is about encouraging collaboration and following a model much like academia." Mr Jollans likened the plan for a patent commons to the way the internet was developed and said everyone could take advantage of the result of collaboration. "The internet's impact has been on everyone. The benefits are there for everyone to take advantage of." Stuart Cohen, chief executive of US firm Open Source Development Labs, said the move could mean a change in the way companies deal with patents. "I think other companies will follow suit," he said. But not everyone was as supportive. Florian Mueller, campaign manager of a group lobbying toprevent software patents becoming legal in the European Union,dismissed IBM's move as insubstantial. "It's just diversionary tactics," wrote Mr Mueller, who leadsnosoftwarepatents.com, in a message on the group's website. "Let's put this into perspective: We're talking aboutroughly one percent of IBM's worldwide patent portfolio. They filethat number of patents in about a month's time," he added. IBM will continue to hold the 500 patents but it has pledged to seek no royalties from the patents. The company said it would not place any restrictions on companies, groups or individuals who use them in open source projects. Open source software is developed by programmers who offer the source code the origins of the program for free and allow others to adapt or improve the software. End users have the right to modify and redistribute the software, as well as the right to package and sell the software. Other areas covered by the patents released by IBM include storage management, simultaneous multiprocessing, image processing, networking and e commerce.


Bolton boss Sam Allardyce has signed Roma defender Vincent Candela on a five month deal. The 31 year old former France international gave his last press conference as a Roma player on Monday, anouncing his move to Bolton. "I have signed a five month contract with Bolton," said Candela, who will travel to England on Tuesday. "In June I will decide whether to continue to play for Bolton or retire from professional football." Allardyce hopes Candela's arrival will relieve Bolton's injury crisis after defender Nicky Hunt limped out injured during Oldham's 1 0 win against Oldham in the FA Cup on Sunday. "In light of what has happened to Nicky Hunt, with his injury, it might be a blessing in disguise that we can bring in a highly experienced full back to help with our injuries at the back," Allardyce said. "He has an outstanding pedigree in the game and has won honours at the highest level including the World Cup in 1998. "He has not played regular football this year but is eager to impress in the Premiership. "He can play in any position at the back and despite him being predominately right footed he has played the majority of his career at left back." Candela, who was a member of the Roma side that won the title in 2001, has made only seven league appearances this season for Luigi del Neri's side.


Spin the radio dial in the US and you are likely to find plenty of Spanish language music. But what you will not find is much Spanish language hip hop. Hip hop and rap are actually quite popular in the Spanish speaking world, but local artists are having trouble marketing their work abroad. But now, a US company is bringing rap and hip hop en espanol to computer users everywhere. Los Caballeros de Plan G are one of Mexico's hottest hip hop acts. They have a devoted fan base in their native Monterrey. But most Mexican hip hop fans, not to mention fans in most of the Spanish speaking world, rarely get a chance to hear the group's tracks on the radio. "You can't really just go on the radio and listen to hip hop in Spanish... it's just not accessible," says Manuel Millan, a native of San Diego, California. "It's really hard for the Spanish hip hop scene to get into mainstream radio. You usually have a very commercialised sound and the groups are not really known around the country or around the world." Millan and two friends set out to change that they wanted to make groups like Los Caballeros de Plan G accessible to fans globally. Mainstream radio stations were not going to play this kind of music, and starting their own broadcast station was economically impossible. So, Millan and his friends launched a website called latinohiphopradio.com. The name says it all: it is web based radio, devoted to the hottest Spanish language rap and hip hop tracks. The site, which is in both in English and Spanish, is meant to be easy to navigate. All the user has to do is download a media player. There are no DJs. It is just music streamed over the net for free. Suddenly, with the help of the website, Los Caballeros de Plan G are producing "export quality" rap. The web might be just the right medium for Spanish language hip hop right now. The genre is in what Millan calls its "infant stage". But the production values are improving, and artists such as Argentina's Mustafa Yoda are pushing to make it better and better. Mustafa Yoda is currently one of the hottest tracks on latinohiphopradio.com. "He's considered the Eminem of Argentina, and the Latin American hip hop scene," Millan says. "He really hasn't had that much exposure as far as anywhere in the world, but he's definitely the one to look out for as far as becoming the next big thing in the Spanish speaking world." Currently, the Chilean group Makisa is also in latinohiphopradio.com's top 10, as is Cuban artist Papo Record. "Every country's got it's own cultural differences and they try to put those into their own songs," Millan says. Latinohiphopradio.com has been up and running for a couple of months now. The site has listeners from across the Spanish speaking world. Right now, Mexico leads the way, accounting for about 50% of listeners. But web surfers in Spain are logging in as well about 25% of the web station's traffic comes from there. That is not surprising as many consider Spain to be the leader in Spanish language rap and hip hop. Millan says that Spain is actually just behind the United States and France in terms of overall rap and hip hop production. That might be changing, though, as more and more Latin American artists are finding audiences. But one Spaniard is still firmly in latinohiphopradio.com's top 10. His name is Tote King and Manuel Millan says that he is the hip hop leader in Spain. On his track Uno Contra Veinte Emcees, or One Against 20 Emcees, Tote King shows he is well aware of that fact. "It's basically him bragging that he's one of the best emcees in Spain right now," Millan says. "And it's pretty much true. He has the tightest productions, and his rap flow is impeccable, it's amazing." Latinohiphopradio.com is hoping to expand in the coming year. Millan says they want to include more music and more news from the world of Spanish language hip hop and rap. Clark Boyd is technology correspondent for The World, a BBC World Service and WGBH Boston co production.


Labour's choice of a white candidate for one of the UK's most multi racial seats proves the need for all black short lists, says a race group. Local councillor Lyn Brown was selected for West Ham, east London, in a contest between two white and five ethnic minority women. An Operation Black Vote spokesman said they now wanted to meet Labour party chairman Ian McCartney for discussions. Mr McCartney recently announced party consultation on all black shortlists. However, Labour has so far unable been unable to comment on the implications of the West Ham result. Ashok Vishwanathan of Operation Black Vote, which aims to increase ethnic minorities' participation in the political process and their representation, said the result again showed all women shortlists were not effective in getting minority women selected. "I think all black shortlists are the only way to cut to the chase and address the lack of minority candidates," Mr Vishwanathan said. Last month the chairman of the Commission for Racial Equality (CRE) also called for ethnic minority shortlists in certain circumstances. A CRE spokesman said the organisation had nothing to add on the shortlist issue specifically but would be working with all the political parties to address the under representation of ethnic minorities in Parliament. "We will be raising it with each of the party leaders on a formal basis and helping them find the most appropriate way forward," the spokesman said. Ethnic minorities make up 8% of the United Kingdom population but only 2% of MPs 13 out of 659 are from a visible minority group. Twelve of them represent Labour, and one is a Liberal Democrat. If ethnic minorities were represented in the House of Commons in proportion to their numbers in the population, there would be 42 ethnic minority MPs.


Newcastle boss Graeme Souness has reopened his dispute with Craig Bellamy after claiming the Welshman was "not good enough" for the Magpies. Bellamy left Newcastle to join Celtic on loan after a major row with Souness. Souness who refused to refer to the 25 year old by name said Bellamy did not score enough goals "The chap that's just gone has scored 9.3 goals a season in his time in senior football half of those weren't even in the top flight," said Souness. "That's not good enough for a striker at a club like this. "We need to have two strikers who are near 20 goals on a regular basis." Bellamy turned down a move to Birmingham in favour of joining Celtic after a disagreement about the Welsh international playing out of position quickly escalated. Earlier in the week, Souness had said that he risked losing the confidence of the players and damaging his own reputation if he had not taken a hard line after Bellamy accused him of lying. "There are certain things you can forgive and forget," said Souness. "But if I'd been seen to be weak in this case there was no future for me with the players in the dressing room or any job I have after Newcastle." He could then return to St James' Park and he says that he wants to. However, it would seem unlikely he will play for Newcastle again as long as Souness remains in charge.


Super high speed wireless data networks could soon be in use in the UK. The government's wireless watchdog is seeking help on the best way to regulate the technology behind such networks called Ultra Wideband (UWB). Ofcom wants to ensure that the arrival of UWB using devices does not cause problems for those that already use the same part of the radio spectrum. UWB makes it possible to stream huge amounts of data through the air over short distances. One of the more likely uses of UWB is to make it possible to send DVD quality video images wirelessly to TV screens or to let people beam music to media players around their home. The technology has the potential to transmit hundreds of megabits of data per second. UWB could also be used to create so called Personal Area Networks that let a person's gadgets quickly and easily swap data amongst themselves. The technology works over a range up to 10 metres and uses billions of short radio pulses every second to carry data. At the recent Consumer Electronics Show in Las Vegas products with UWB chips built in got their first public airing. Currently, use of UWB is only allowed in the UK under a strict licencing scheme. "We're seeking opinion from industry to find out whether or not we should allow UWB on a licence exempt basis," said a spokesman for Ofcom. Companies have until 24 March to respond. In April the EC is due to start its own consultation on Europe wide adoption of UWB. The cross Europe body for radio regulators, known as the European Conference of Postal and Telecommunications Administrations (CEPT), is carrying out research for this harmonisation programme. Early sight of the CEPT work has caused controversy as some think it over emphasises UWB's potential to interfere with existing users. By contrast a preliminary Ofcom report found that it would be quite straight forward to deploy UWB without causing problems for those that already use it. The Ofcom spokesman said it was considering imposing a "mask" or set of technical restrictions on UWB using devices. "We would want these devices to have very strict controls on power levels so they can not transmit a long way or over a wide area," he said. Despite the current restrictions the technology is already being used. Cambridge based Ubisense has about 40 customers around the world using the short range radio technology, said David Theriault, standards and regulatory liaison for Ubisense. He said that UWB was driving novel ways to interact with computers. "It's like having a 3D mouse all the time," he said. He said that European decisions on what to do with UWB allied with IEEE decisions on the exact specifications for it would help drive adoption. Prior to its adoption as a way for gadgets and computers to communicate, UWB was used as a sensing technology. It is used to spot such things as cracks under the surface of runways or to help firemen detect people through walls.


Glenn Hoddle has been unveiled as the new Wolves manager. The ex England coach has been given a six month contract to succeed Dave Jones, who was sacked after the club's poor start to the season. Wolves chairman Rick Hayward said: "We're delighted Glenn is here. He has a six month contract so we can test each other out and see if it works." Hoddle, who will work alongside Stuart Gray, has been out of the game since he was sacked by Spurs in 2003. Gray, who has been caretaker manager, was assistant boss when Hoddle was manager at Southampton. "I'm delighted to be here," said Hoddle. "I saw the massive potential that Wolves have got and their desire and amibition to get back into the Premiership parallels my ambitions. "Stuart Gray has done a fantastic job as caretaker manager. We've worked together at Southampton and I'm delighted to be back with him." Wolves chief executive Jez Moxey defended the decision to give Hoddle a short term contract. "We hope it will work out for both parties and we extend it for the long term," he said. "Most managers want a four year contract and then expect it to be paid off if it doesn't work out. "For somebody of Glenn's calibre to come in on a short term contract and put his reputation on the line, it demonstrates his commitment and self belief and the potential he thinks is here." Hayward revealed that Hoddle was one of the first to be approached after Jones' departure. "He was not available at the time because he was looking at various other things," he explained. "Five weeks later we're back on track and this a tremendous opportunity for Wolves." Hoddle began his managerial career as player boss with Swindon before moving on to Chelsea and then taking up the England job. His spell in charge of the national side came to an end after the 1998 World Cup when he made controversial remarks about the disabled in a newspaper interview. The 47 year old later returned to management with Southampton, where he again succeeded Jones as he has now done at Wolves. He engineered an upturn in Saints' fortunes before being lured to White Hart Lane by Tottenham the club where he made his name as a player. That relationship turned sour at the start of the last campaign and he left the London club early last season. Since then he has applied unsuccessfully for the post of France manager and had also been linked with a return to Southampton. Wolves are currently 17th in the Championship and have a home game against Millwall on Tuesday.


Iraq is to invite bids for two telephone licences, saying it wants to significantly boost nationwide coverage over the next decade. Bids have been invited from local, Arab and foreign companies, Iraq's Ministry of Communications said. The winner will work in partnership with the Iraqi Telecommunications and Post Company (ITPC). The firms will install and operate a fixed phone network, providing voice, fax and internet services. The ministry said that it wanted to increase Iraq's "very low telephone service penetration rate from about 4.5% today to about 25% within 10 years." It also hopes to develop a "highly visible and changeable telecommunication sector". Details of the bidding and tender process will be published on the ministry's website on 9 February. It also is planning a road show for investors in Amman, Jordan. The ministry said it would base its selection on criteria including the speed of implementation, tariff rates, coverage, and the firm's experience and financial strength.


Prime Minister Tony Blair said it was time to draw a line under the controversy surrounding David Blunkett. The Tories and the Lib Dems have called for a second inquiry into the fast tracking of a visa application for Mr Blunkett's ex lover's nanny. Sir Alan Budd found a "chain of events" linked Mr Blunkett to Leoncia Casalme's indefinite leave to remain application. At the end of his Middle East trip, Mr Blair said he still admired Mr Blunkett and thought his integrity was intact. On Tuesday Sir Alan said the application for leave to remain in the UK made by Kimberly Quinn's nanny was processed in 52 days, 120 days faster than the average. But he could not find evidence to show whether Mr Blunkett's intervention was intended to give special help for his then lover's nanny or if he was raising the case as an example of poor departmental performance. In his first comments since Sir Alan's announcement, Mr Blair told BBC News he had not yet read the report in detail. But told BBC News: "As far as I'm concerned, we have drawn a line under that." Asked if Mr Blunkett could return to frontline politics at some point, he replied: "I have made my admiration for David very clear and it remains. "He's been a tremendous colleague, he's done a great job for us, first as home secretary then as education secretary. The future is something we will have to approach in the future." The prime minister shrugged off claims from Conservative leader Michael Howard that he led a "grubby government". He said Mr Blunkett's integrity remained intact: "He was the person first of all who asked for this inquiry to be set up. He accepted that what he originally thought had happened had not happened, he said. "But I think Sir Alan Budd also accepted there wasn't some conspiracy or cover up and I just think a line should be drawn under now and we should move on." Earlier, Mr Howard said: "There does need to be another inquiry, a judge led inquiry. There were so many questions that weren't answered." There was "deceit at the heart of government" which was not limited to the visa affair, he argued. Lib Dem home affairs spokesman Mark Oaten also said there was "a strong case for a judge led judicial review". He said: "Next time it happens it may not be about a nanny and their visa. It may be about something even more important than that." Mr Blunkett quit as home secretary last week after being told in advance of Sir Alan's findings. In a statement, the ex home secretary said he accepted the inquiry's findings. He said he had told the truth throughout and had raised the nanny case as an example of unacceptable backlogs in the system.


The Egyptian government is reportedly planning to privatise one of the country's big public banks. An Investment Ministry official has told the Reuters news agency that the Bank of Alexandria will be sold sometime in 2005. The move is seen as evidence of a new commitment by the government to reduce the size of public sector. The official said the government has not yet decided whether the sale will take the form of a public flotation. "The most important thing to decide now is the method whether by selling shares to the public or to a strategic investor from abroad," he said. Analysts say the public sector banks have suited the government's monetary, credit and exchange policies. Nevertheless, the Egyptian government has spoken for years about privatising one of the big four state banks Banque Misr, National Bank of Egypt, Banque du Caire and Bank of Alexandria. It had been expected one of the smallest of the four big public banks Bank of Alexandria or Banque du Caire would be sold first. The announcement reinforces the hopes of investors and international financial bodies for a revival of Egypt's privatisation programme. About 190 state run companies and facilities were sold off from the early 1990s to 1997. The appointment of Mahmoud Mohieldin, a reform minded technocrat, to the new post of investment minister in July was taken as a sign that more sell offs were on the way. Both the IMF and World Bank have urged Egypt to remove obstacles to the development of the private sector which they say has a vital role to play in reducing poverty by expanding the economy.


Ireland's Brian O'Driscoll is one of four Six Nations captains included in the Northern Hemisphere squad for the IRB Rugby Aid match on 5 March. France's Fabien Pelous, Gordon Bullock of Scotland and Italy's Marco Bortolami are also in the Northern party. Sir Clive Woodward will coach the Northern team against Rod Macqueen's Southern Hemisphere team in a tsumani fund raising match at Twickenham. "I'm looking forward to working with such outstanding players," he said. It will be a chance for Woodward to assess some of his options before unveiling his British and Irish Lions touring party, who will visit New Zealand in the summer. "The game promises to be a great spectacle," he said. "Both teams are fielding top quality sides and I really hope that the rugby public and community get behind this game to raise as much money as possible for such a deserving cause." L Dallaglio (England), B Cohen (England), A Rougerie (France), D Traille (France), F Pelous (France), R Ibanez (France), P de Villiers (France), B O'Driscoll (Ireland, capt), P O'Connell (Ireland), D Humphreys (Ireland), C Paterson (Scotland), C Cusiter (Scotland), G Bullock (Scotland), S Taylor (Scotland), A Lo Cicero (Italy), M Bortolami (Italy), S Parisse (Italy), D Peel (Wales), C Sweeney (Wales), J Thomas (Wales), R Williams (Wales), J Yapp (Wales). C Latham (Australia); R Caucaunibuca (Fiji), J Fourie (S Africa) T Umaga (New Zealand), S Bobo (Fiji); A Mehrtens (New Zealand) G Gregan (Australia, capt); T Kefu (Australia), P Waugh (Australia), S Burger (S Africa); I Rawaqa (Fiji), V Matfield (S Africa); K Visagie (S Africa), J Smit (S Africa), C Hoeft (New Zealand). Reserves: B Reihana (New Zealand), B Lima (Samoa), E Taukafa (Tonga), O Palepoi (Samoa), S Sititi (Samoa), M Rauluni (Fiji), A N Other.


Chelsea left back Wayne Bridge could miss the rest of the season with a suspected broken ankle. The England international, 24, was hurt in an innocuous challenge with Alan Shearer during the Londoners' FA Cup defeat at Newcastle on Sunday. "We think it's a big injury," said Jose Mourinho, whose Chelsea team this week meet Barcelona in the Champions League and Liverpool in the Carling Cup final. William Gallas and Damien Duff could also miss the Barcelona game. France defender Gallas and Ireland winger Duff both picked up their injuries in the closing stages of Chelsea's 1 0 defeat at St James' Park. With Bridge having gone off after Mourinho used all three substitutes, those knocks plus Carlo Cudicini's red card meant Chelsea finished the game with seven able bodied players. Cudicini would not have played against Barcelona, but had been promised a game in the Carling Cup final, although he will now miss the Cardiff showpiece through suspension. The manager is not planning to add any new names to his squad ahead of the trip to Barcelona, even though he has few options to replace Bridge at left back. Celestine Babayaro left the club in January, ironically to join Newcastle, and although Gallas has deputised at left back before, he is struggling to be fit himself. It could be that Paulo Ferreira, usually a right back, is switched to left back with Glen Johnson, who ended the Newcastle game in goal, playing on the right. Youngsters Ben Hudell, Joe Keenan and Sam Tillen would be options should Mourinho decide to call up a replacement, but it is unlikely he would risk an untried prospect in a Champions League tie. Bridge's injury also means Mourinho, who reportedly wants to sign Ashley Cole from Arsenal, will not have a specialist, senior left back for the run in to the season. "He (Bridge) has no chance of playing against Barcelona, probably will not play against Liverpool (in the Carling Cup final) and maybe not for the rest of the season," he said. "The medical department will try to do everything to recover Gallas and Duff. We will have to wait and see, but I won't cry about injuries because we will have 11 players to play on Tuesday." Shearer said he was unsure what caused Bridge's injury. "I don't know what happened." he said. "It was just a shame. I don't think we even touched each other. "By all accounts it's pretty serious. I went into the dressing room after the game and wished him all the best." Mourinho, whose team are chasing three trophies, has already lost winger Arjen Robben to a serious injury.


A new breed of wearable robotic vehicles that envelop drivers are being developed by Japanese car giant Toyota. The company's vision for the single passenger in the 21st Century involves the driver cruising by in a four wheeled leaf like device or strolling along encased in an egg shaped cocoon that walks upright on two feet. Both these prototypes will be demonstrated, along with other concept vehicles and helper robots, at the Toyota stand at the Expo 2005 in Aichi, Japan, in March 2005. The models are being positioned as so called personal mobility devices, which have few limits. The open leaf like "i unit" vehicle is the latest version of the concept which the company introduced last year. Built using environmentally friendly plant based materials, the single passenger unit is equipped with intelligent transport system technologies that allow for safe autopilot driving in specially equipped lanes. The model allows the user to make tight on the spot turns, move upright amongst other people at low speeds and can be easily switched into a reclining position at higher speeds. Body colours can be customized to suit individual preferences and a personal recognition system offers both information and music. Also on display at the show will be the egg shaped "i foot". This is a two legged mountable robot like device that can be controlled with a joystick. Standing at a height of well over seven feet (2.1 metres), the unit can walk along at a speed of about 1.35km/h (0.83mph) and navigate staircases into the bargain. Mounting and dismounting is accomplished with the aid of the bird like legs that bend over backwards. "They are clearly what we call concept vehicles, innovative ideas which have yet to be transformed into potential products and which are a few years away from actual production," said Dr David Gillingwater from the Transport Studies Group at Loughborough University. "They clearly have eye catching appeal, which is in part the name of the game here, and are linked to the iMac and iPod type niche which Apple have been responsible for developing and leading in recent years new, different, hi tech, image conscious products. "As always with these concept vehicles, it is difficult to see 'who' they would appeal to and what their role would be in the 'personal transport' marketplace." The personal transport arena is taking on a new dimension though with futuristic devices that augment human capabilities. Toyota's prototypes represent the latest incarnation of wearable exoskeletons in a vehicular form that is specially focused on transport. Powered robotic exoskeletons have been the focus of much US military research over the years and Japan seems to have jumped onto the bandwagon with a wave of products being developed for specific applications. With an emerging range of devices targeted towards the ageing world population, care giving and the military, wearable exoskeletons seem to represent a new line of future technologies that meet an individual's particular mobility needs. While Toyota's prototypes are geared towards mass transport, the company says that the vehicles will allow the elderly and the disabled to achieve independent mobility. Experts, though, are a bit sceptical of their acceptance in this area. "Those with arguably the greatest needs for this sort of assistance, now and certainly in the future, are the elderly and infirm people," Dr Gillingwater told the BBC News website. "You have to ask whether these sorts of vehicles will appeal to these groups." Design considerations also exist. Dr Erel Avineri, of the Centre for Transport and Society at the University of the West of England in Bristol said: "The design of the introduced mobility devices is not completely adjusted to the specific needs of the elderly and the disabled. "For example, one problem that many older passengers experience is limited ability to rotate the neck and upper body, making it difficult to look to the side and back when backing up. "It looks like the visual design of the device interior does not consider this need. This and other human factors related issues in the design of such devices are not the only issues that should be considered," said Dr Avineri. "In general, introducing a new technology requires the passenger to change behaviour patterns that have served the older passenger for decades. Elderly users might not necessarily accept such innovation. "This may be another barrier to the commercial success of such a vehicle." Such single person vehicles may find a relatively small market niche and may be more suited towards specialised applications rather than revolutionising the face of mass transport. "The concept of personal mobility behind these sorts of innovations is great but they beg a huge number of questions," said Dr Gillingwater. "What's their range? How user friendly will they really be? What infrastructure will be required to allow these vehicles to be used. "Overall I think these vehicles pose a number of important questions than provide answers or solutions."


Carlos Moya has chosen not to help Spain try and defend the Davis Cup crown they won in Seville in November. Moya led Spain to victory over the USA but wants to focus on the Grand Slams in 2005, although insists he will return to the Davis Cup in 2006. "After two years of total commitment with the Davis Cup team... I have taken this difficult decision to concentrate on the regular circuit," said Moya. "They know that after this season they can count on me again if they so wish." The 1998 French Open champion is determined to make an impact in the major events after spending much of the last eight years in the top 10. "At the age of 29 I have set some tough goals in my professional career and this season I need to fix my objectives on specific dates and tournaments," he said. "Since the Davis Cup in Seville I have been working on my condition as well as technical and medical aspects of my game which will allow me to come into the big events of the year in top form." Moya began 2005 with victory in the Chennai Open on Sunday.


Republic of Ireland manager Brian Kerr has been granted his wish for a home game as the final World Cup qualifier. Ireland will close their bid to reach the 2006 finals by playing Switzerland in Dublin on 12 October 2005. The Republic met the Swiss in their final Euro 2004 qualifier, losing 2 0 away and missing out on a place in the finals in Portugal. The Group Four fixtures were hammered out at a meeting in Dublin on Tuesday. The Irish open their campaign on 4 September at home to Cyprus and wrap up the 10 match series on 12 October 2005, with the visit of Switzerland. Manager Brian Kerr and FAI officials met representatives from Switzerland, France, Cyprus, Israel and the Faroe Islands to arrange the fixture schedule. Kerr had hoped to finish with a clash against France, but got the reigning European champions as their penultimate home match on 7 September 2005. The manager got his wish to avoid a repeat of finishing their bid to qualify with too many away matches. Republic of Ireland v Cyprus; France v Israel; Switzerland v Faroe Islands. Switzerland v Republic of Ireland; Israel v Cyprus; Faroe Islands v France. France v Republic of Ireland; Israel v Switzerland; Cyprus v Faroe Islands. Republic of Ireland v Faroe Islands; Cyprus v France. Cyprus v Israel. France v Switzerland; Israel v Republic of Ireland. Switzerland v Cyprus; Israel v France. Republic of Ireland v Israel; Faroe Islands v Switzerland. Faroe Islands v Republic of Ireland. August 17 Faroe Islands v Cyprus. France v Faroe Islands; Switzerland v Israel. Republic of Ireland v France; Cyprus v Switzerland; Faroe Islands v Israel. Switzerland v France; Israel v Faroe Islands; Cyprus v Republic of Ireland. France v Cyprus; Republic of Ireland v Switzerland.


David McLetchie has resigned from his post as a partner in a legal firm following criticism over his dual role. The Scottish Conservative leader had insisted that his legal work with Tods Murray did not influence the causes he supports. But on Friday he said: "I have tendered my resignation as a partner with immediate effect." Mr McLetchie had received advice from Holyrood officials about what details he needed to declare. Labour said he had "cleverly" not asked about paid advocacy. A Tory spokesman "totally refuted" any wrongdoing. Mr McLetchie received advice from the clerk to the standards committee after concern over him signing a parliamentary motion questioning expansion plans for Edinburgh Airport. The MSP had been a partner for Tods Murray which has a client opposing the development. Mr McLetchie did not have a complaint made against him, but when concerns were raised he sought guidance from the standards committee to clarify his position. He was advised to exercise judgement to avoid the perception of a conflict and said he had done nothing wrong. Explaining his reason for quitting the post, Mr McLetchie said: "I have been greatly concerned by the recent publicity surrounding my association with Tods Murray. "However, I have no wish to see a similar situation arise again. "To avoid any misconceptions in the future and be mindful of the good name of Tods Murray and the confidentiality to which its clients are entitled, I have brought forward the date of my retirement from the firm which would otherwise have happened later this year. "I am proud to have been a part of Tods Murray for the last 29 years and wish it well in the future." Labour MSP Christine May had said Mr McLetchie was "very clever" to ask the clerk to consider his conduct in respect of section 5 of the code. "He was almost bound to get the answer he wanted from this enquiry since he stands accused of breaching section 6, the section on paid advocacy," she said. Section 5 of the members interest order legally obliges MSPs to declare registrable interests before taking part in related parliamentary proceedings "where the interest would prejudice or give the appearance of prejudicing their ability to participate in a disinterested manner". However, MSPs' Code of Conduct "recognises a wider definition" of parliamentary proceedings, including a non statutory requirement to make a declaration in relation to written notices, such as motions. But a letter from Holyrood's Chamber Office chief Ken Hughes also made clear that Mr McLetchie did not need to list any of the clients for whom he worked as a solicitor. Commenting on Mr McLetchie's decision to stand down, a Scottish Labour Party spokesman said: "This should mean Mr McLetchie doesn't breach the paid advocacy rules in future. "However it doesn't change the fact that there should be a full investigation into whether he has done this in the past." Scottish National Party Holyrood leader Nicola Sturgeon accused Mr McLetchie of failing to properly serve his constituents. Ms Sturgeon said: "I think this whole episode has been very damaging for Mr McLetchie and I'm sure he will be reflecting on it." She added that she thought that the Tories were an irrelevant party so she would not "lose any sleep over it". Peter Misselbrook, executive partner of Tods Murray said Mr McLetchie had been considering retirement later in the year. He added: "David has decided that this announcement should be made now and we fully understand and appreciate his reasons for doing so."