Former Conservative leader William Hague says he will not stand for the leadership again, having given up his ambition to be prime minister. Mr Hague, 43, told the Daily Telegraph he would now find a life dominated by politics too "boring" and unfulfilling. Mr Hague, who stepped down after his party's 2001 election defeat, does not rule out a return to the front bench. He also told the paper he hopes to remain MP for Richmond, North Yorks, and start a family with wife Ffion. Mr Hague, who recently had published the biography of William Pitt the Younger, also said he wanted to continue writing books and speech writing. He told the newspaper: "I don't know whether I will ever go back on to the front, but don't rush me." Asked if he would stand for the leadership again, Mr Hague replied: "No. Definitely not." His determination to stay away from a central role will disappoint some senior Conservative members, who say the party needs him. Tim Collins, the shadow education secretary, said last week it would be a "huge boost" to the party if Mr Hague returned to the front bench. Mr Hague became an MP at 27 and Leader of the Opposition at 36. He said: "I feel fortunate that, by the age of 40, I had crammed in an entire political career. "I had been in the Cabinet and been leader of the party, so now I can branch out into other things...it is a very liberating feeling." Mr Hague added that he may have misjudged his own ambition to be prime minister. "Maybe I wasn't as driven by politics as I thought I was," he said.


Tim Henman's decision to quit Davis Cup tennis has left the British team with a gargantuan void to fill. The world number seven is tied for fourth among his countrymen for wins in the history of the tournament (he has 36 from his 50 rubbers). And Great Britain's last Davis Cup win without Henman came against Slovenia as far back as 1996. Worse could follow, according to former British team member Chris Bailey. Bailey told BBC Sport: "After Tim's announcement, I doubt Greg Rusedski will be that far behind him." But without their top two, where does that leave British ambitions in the sport's premier team event? Captain Jeremy Bates has singled out Alex Bogdanovic and Andrew Murray as potential replacements. The Yugoslavian born Bogdanovic, though, is 184 places below Henman in the world rankings and has played just two cup ties winning one and losing the other. Murray, on the other hand, is 407th in the current ATP entry list and yet to make his cup debut. But Bailey does see some hope for the future. He said: "Now we've dropped down to the Euro Africa zone, the time was right for him to step down and let the young guys come to the fore." Britain's next opponents, Israel, are hardly likely to be quaking in their boots ahead of the 4 6 March match against a likely trio of Bogdanovic, Murray and the 187th ranked Arvind Parmar. Bailey said: "It will be tough for GB to move up, but there comes a time when our young players have to step up. This was always going to be inevitable with Tim and Greg's growing years. "I'm confident about the future. I wouldn't lay money on us getting back into the world group next year, but I'd imagine in five years time we'll be competing for the major honours." Of those lining up to replace Henman, the 17 year old Murray, with four Futures titles under his belt last year, looks the best long term bet. "Murray is the one that looks likeliest to take over Tim's mantle," said Bailey. "He has an enormous amount of self confidence, judging by what he's said in the past." Bogdanovic, three years Murray's senior, has had a more troubled time under Britain's Davis Cup umbrella. While Murray has been marked out as Britain's golden boy, Bogdanovic was warned by the Lawn Tennis Association for a lack of drive at the end of 2003. And Bailey said: "Despite that, Alex is clearly talented as well, while Arvind is another contender. "They're among the guys who have experienced the intensity of Davis Cup tennis whether as players or on the sidelines. "The LTA has always done an exceptional job of ensuring that. "Now they'll finally get to play regularly in the cauldron of the cup. And I'm confident that will springboard Team GB to greater success."


Tony Blair has had the chance to tackle the problems facing Britain and has failed, Michael Howard has said. "Britain is heading in the wrong direction", the Conservative leader said in his New Year message. Mr Blair's government was a "bossy, interfering government that takes decisions that should be made by individuals," he added. But Labour's campaign spokesman Fraser Kemp responded: "Britain is working, don't let the Tories wreck it again". Mr Howard also paid tribute to the nation's character for its generous response to the Asian quake disaster. The catastrophe was overshadowing the hopes for the future at this usually positive time of the year, Mr Howard said. "We watched the scenes of destruction with a sense of disbelief. The scale, the speed, the ferocity of what happened on Boxing Day is difficult to grasp. "Yet Britain's response has shone a light on our nation's character. The last week has shown that the warm, caring heart of Britain beats as strong as ever." He went on to reflect on the values that "most Britons hold dear". Looking ahead to the coming general election, he pledged to "turn these beliefs into reality" and set out the choices he says are facing Britain. "How much tax do people want to pay? Who will give taxpayers value for money, the clean hospitals and good, disciplined schools they want? "Who can be trusted to get a grip on the disorder on our streets and the chaos in our immigration system?" Mr Blair has failed to tackle these problems, he claimed, saying he has the "wrong solution" to them. "The result is big government and higher taxes eroding incentives, undermining enterprise and denying people choice. "Worst of all, it is a government that has wasted people's money and failed to tackle the problems families face today." The Tories, he said, can cut crime and improve public services without asking people to pay more taxes. "We can have progress without losing what makes Britain great its tolerance, the respect for the rule of law, the ability of everyone to fulfil their potential. "We simply need to change direction. The election will give Britain the chance to change." This is the record Mr Blair will have to defend in the coming months, he said, urging voters to hold him to account. But Labour spokesman Mr Kemp said: "It would be more appropriate for this message to come out on 1 April, not 1 January." "Let us never forget that when Michael Howard was in government Britain suffered mass unemployment, 15% interest rates, record home repossessions, and the introduction of the poll tax. "With Labour Britain is working. Rather than alluding to false promises Michael Howard should be starting 2005 with an apology to the British people for the misery that the government, of which he was a member, inflicted upon the country.


Archbishop Desmond Tutu has called for the release of the remaining inmates at Guantanamo Bay and terror suspects detained without trial in the UK. His comments follow news that all four Britons held by the US in the Cuban camp will be freed within weeks. The South African archbishop said detentions without trial were "unacceptable" and "distressing". Twelve foreign nationals are being held indefinitely without trial in the UK under anti terror laws. Referring to the detentions in Cuba, Archbishop Tutu told BBC News: "It is utterly unacceptable. "The rule of law is in order to ensure that those who have power don't use their power arbitrarily and every person retains their human rights until you have proven conclusively that so and so is in fact guilty." Moazzam Begg, from Birmingham, and Martin Mubanga, Richard Belmar and Feroz Abbasi, from London, have been held by the US at Guantanamo Bay for almost three years. On Tuesday Foreign Secretary Jack Straw told the Commons that the US had agreed to release the four after "intensive and complex discussions" over security. The Britons were detained as part of the US led "war on terror". The archbishop added: "Whilst we are saying thank you that these have been released, what is happening to those left behind? "We in South Africa used to have a dispensation that detained people without trial and the world quite rightly condemned that as unacceptable. "Now if it was unacceptable then how come it can be acceptable to Britain and the United States. It is so, so deeply distressing." Following Mr Straw's announcement, lawyer Louise Christian, who represents Mr Abbasi and Mr Mubanga, said the government should have acted sooner. Foreign nationals detained in the UK are being held at Belmarsh and Woodhill prisons. In December the House of Lords, the UK's highest court, ruled that the anti terror measures broke human rights laws. But the men are still behind bars. Archbishop Tutu criticised the measures, saying: "I am opposed to any arbitrary detention that is happening, even in Britain." Shami Chakrabarti, director of civil rights group Liberty, has called on the government to "practise what it preaches" and either free or charge the detained men. But the Home Office defended the measures. A spokesman said: "These individuals cannot currently be prosecuted because some evidence, such as that provided by third parties, cannot safely be disclosed in criminal proceedings without putting others at risk. "It is also currently the case that intelligence gained from covert intercepts cannot be used in a court of law."


The libraries of five of the world's most important academic institutions are to be digitised by Google. Scanned pages from books in the public domain will then be made available for search and reading online. The full libraries of Michigan and Stanford universities, as well as archives at Harvard, Oxford and the New York Public Library are included. Online pages from scanned books will not have adverts but will have links to online store Amazon, Google said. "The goal of the project is to unlock the wealth of information that is offline and bring it online," said Susan Wojcicki, director of product management at Google. There will also be links to public libraries so that the books can be borrowed. Google will not be paid for providing for the links. It will take six years to digitise the full collection at Michigan, which contains seven million volumes. Users will only have access to extracts and bibliographies of copyrighted works. The New York library is allowing Google to include a small portion of books no longer covered by copyright. Harvard is limiting its participation to 40,000 books, while Oxford wants Google to scan books originally published in the 19th Century and held in the Bodleian Library. A spokeswoman for Oxford University said the digitised books would include novels, poetry, political tracts and art books. "Important works that are out of print or only available in a few libraries around the world will be made available to everyone," she said. About one million books will be scanned by Google, less than 15% of the total collection held in the Bodleian. "We hope that Oxford's contribution to this project will be of scholarly use, as well as general interest, to people around the world," said Reg Carr, director of Oxford University Library Services. "It's a significant opportunity to bring our material to the rest of the world," said Paul LeClerc, president of the New York Public Library. "It could solve an old problem: If people can't get to us, how can we get to them?" "This is the day the world changes," said John Wilkin, a University of Michigan librarian working with Google. "It will be disruptive because some people will worry that this is the beginning of the end of libraries. "But this is something we have to do to revitalise the profession and make it more meaningful."


Dundee United eased into the semi final of the Scottish Cup with an emphatic win over Aberdeen. Alan Archibald prodded United ahead in 19 minutes and James Grady made it two from close range 10 minutes later. Richie Byrne's header gave Aberdeen a way back into the game, but Stevie Crawford restored United's lead from 18 yards before half time. The scoring was completed by Grady just after the break a superb shot on the turn making it 4 1. Tony Bullock in the United goal was called into action for the first time with just over a quarter of an hour on the clock. Noel Whelan laid the ball off to Jamie Winter on the edge of the box, but his first time effort was gathered by the United keeper. Moments later though, the home side took the lead. Barry Robson whipped in a free kick from the right, which Stevie Crawford caught on the volley. Russell Anderson failed to deal with it and Whelan's clearance off the line landed kindly at the feet of Archibald, who poked the ball into the net. United doubled their lead after 29 minutes when Grady tapped the ball into an empty net after Robson had headed Mark Wilson's cross off the angle of post and bar. But only three minutes later Aberdeen clawed their way back into the match. A free kick from the left by Winter was met powerfully by the head of Byrne at the back post, leaving Bullock helpless. United restored their two goal lead four minutes before the end of a highly entertaining first half. Jason Scotland played a perfectly weighted pass into the path of the onrushing Crawford and he coolly beat Ryan Esson from 18 yards. United ended the game as a contest just two minutes after the interval. Grady received a pass from Crawford with his back to goal on the edge of the box and after taking one touch, he spun to volley the ball past the despairing dive of Esson. The home side were in complete control and it required a good stop from Esson to keep out Robson's drive after 62 minutes. The keeper denied the same player again 10 minutes later, beating away his fierce shot from the left of the penalty area. Robson saw another long range effort tipped round the post before a cute lob was headed off the line. Bullock, Duff, Wilson, Ritchie, Archibald, Scotland (Samuel 63), Brebner, Kerr (Cameron 87), Robson, Crawford, Grady. Colgan, Dodds, Kenneth. Brebner. Archibald 19, Grady 29, Crawford 41, Grady 47. Esson, Hart, Anderson, Diamond, Byrne (Morrison 75), McNaughton, Heikkinen (Foster 27), Winter, Clark (Stewart 51), Mackie, Whelan. Blanchard, McGuire. : Anderson, Diamond. Byrne 33. 8,661 K Clark


Three years after Argentina was hit by a deadly economic crisis, there is fresh hope. The country's economy is set to grow about 8% this year after seeing 9% growth last year, a sharp turnaround from 2002 when output fell 11%. The unemployment rate is improving, too: It is set to slip below 13% by the end of the year, down from 20% in May 2002. True, problems remain, but the overall picture is one of vast improvement. Even the International Monetary Fund (IMF) admits this. "The Argentine authorities are proud, should be proud, of the strong performance of the economy," Thomas Dawson, an IMF director, said earlier this month. Argentina has made a remarkable recovery from a hideous and lengthy recession which in 2001 culminated in the government halting debt repayments to its private creditors. The debt default sparked a deep and prolonged economic crisis which, at least initially, was made worse by the government's decisions. Pension payments were halted and bank accounts frozen as part of austerity measures introduced by the government to deal with the country's massive debts. In response, angry crowds of ordinary Argentines took to the streets where dozens of lives were lost in clashes with the police. Two presidents and at least three finance minister resigned in less than a month. Argentina was on the brink of collapse. The fix was found in the currency markets with the abandonment of the peso's decade long peg to the US dollar in February 2002. The subsequent devaluation saw thousands of people's life savings disappear. Scathes of companies went bust. "Three years ago, every sector of the economy was hit by the crisis," said entrepreneur Drayton Valentine. It really was dire. But since then, the general mood on the ground has improved dramatically, in part because the devaluation helped attract fresh direct investment from abroad and stimulate business within Brazil. "Agriculture and tourism are helping," said entrepreneur Drayton Valentine. Mr Valentine, who was born in the United States but grew up in Argentina, was fortunate: At the time of the crisis, his savings were held in dollar accounts abroad. But now he is using his money to help with the start up a trading company. He explained that initially, his firm is going to export building materials to Spain and United States. Then, he would like to diversify to other areas, depending on the market. "Locally there is a sense of recovery, many companies are exporting now," he said, noting that a lot of firms, which were closed during the crisis, are re opening. But not all that shines is gold. Argentina is still burdened by its failure to pay private creditors at the end of 2001. President Nestor Kirchner's administration is still trying to hammer out an agreement with the creditors, but with the debts' nominal value standing at around 100bn it is not proving easy. Debt defaults make further lending agreements both difficult and expensive to negotiate. Argentina's current offer implies that the creditors would get just 25 cents for each dollar they are owed, according to the creditors. Understandably, they want more and until they do, both they and others are loath to continue lending. For President Kirchner, this proves a hopeless challenge. Real losses have been suffered and somebody has to pay, observed Jack Boorman, adviser to IMF's managing director, Rodrigo Rato. "Everyone needs to keep in mind the enormous cost on the part of both creditors and the Argentine society and people that will have been endured by the time a settlement is reached," he said. "The cost is enormous, and continues to be paid, and will not be reversed by any restructuring." With the international negotiations being troubled, it is of little help to President Kirchner that the domestic situation remains strained as well. This is partly because there are still bank account holders who are waiting to recover some of their deposits. "The situation is bad for those who had previously chosen to save in Argentina, " said Carlos Baez Silva, president of AARA, an association that represents bank account and bond holders. Few people have recovered more than about half their savings, Mr Baez Silva estimated, pointing out that many of the savers who have lost out are pensioners or others who once trusted the government, people who set aside money for the future in the belief that their investment would be safe. "A lot of them invested in good faith," he said. "The Argentine state responded by taking most of their investments." The affair has made Mr Baez Silva disillusioned with the country's legal system. On occasion, the Supreme Court has ruled against the interests of the people he represents, he says, insisting that the system cannot be trusted. "People have to deposit their money in the banks, not necessarily because they trust them but because crime is so high that people cannot have their money in their homes beneath their mattresses." Mr Valentine, who was born in the United States but grew up in Argentina, agreed. "If I have to save pesos the local currency there is not much problem, but I will think twice before I deposit dollars in a bank".


Rio Ferdinand has said he is unsure of Malcolm Glazer's motives after the American billionaire launched a new offer to buy Manchester United. The club have confirmed that the Glazer Family Partnership have submitted proposals of a third bid. "A lot of people want the club's interest to be with people who have grown up with the club and have got its interests at heart," said Ferdinand. "No one knows what this guy will be bringing to the table." The central defender added on BBC Radio Five Live: "We will have to wait and see what Glazer comes with. "I would like to see the situation resolved either way. "I think people are getting bored with him coming in and out of the news with new proposals. "The other stuff off the pitch takes the shine off what is going on the pitch." Glazer, currently owns a 28.1% stake in the club, and United's statement to the stock exchange said: "The board has noted the recent press speculation on this subject. "The board can confirm that it has now received a detailed proposal subject to various pre conditions which may form the basis of an offer for Manchester United from Glazer. "A further announcement will be made in due course." Glazer's previous bids for the club, which United supporters opposed, were rejected by the board because of the high level of debt they would incur. But it is believed that Glazer has substantially reduced the borrowing required for his latest move. He will still need the approval of major shareholders John Magnier and JP McManus, who own 28.9% of the club to succeed. But the Irish duo have cut off talks with Glazer over the proposed sale of their stake, while fans remain opposed to his involvement.


Fifty new areas getting special help to fight anti social behaviour in England and Wales will be named on Thursday. Ten areas have already had access to special prosecutors and local experts and the government is now expanding the crackdown to more towns and cities. Details of how many anti social behaviour orders (Asbos) were used in the last year are also being published. Labour sees nuisance behaviour as a key election issue but critics claim the record is at best patchy. A year ago, ministers launched their anti social behaviour plan and Thursday's figures offer a progress check. They will say that in the past year more than 2,600 anti social behaviour orders were issued by the courts more than double the total used in the previous four years. Police have also closed 150 crack houses and issued more than 400 dispersal orders, breaking up groups of youths in public places. The 50 new pilot areas to get special attention will also receive extra government funding. Exeter and Cardiff are among cities who have voiced interest in being involved. Prime Minister Tony Blair is also expected to announce new measures to strengthen the use of Asbos and fixed penalty notices. There are still concerns that some areas of the country are not using the powers properly. He is expected to say that the new figures were heartening but he would not rest until similar action was taken in all areas of the country where it was needed. "We have not defeated this problem by any means, but shown together what can be done," he will say. Mr Blair this week defended the shake up of the licensing laws, saying it was right to focus on troublemakers rather than treating everybody as a potential drunken nuisance. Ministers also boast of record police numbers and are speeding up plans to put in place 25,000 community support officers (CSOs). But researchers from Leeds University warned that CSOs could undermine traditional bonds between police officers and communities. More work needed to be done on clarifying the role of different agencies and how they linked together before CSOs, they argued in a the study. Critics of the government say it has announced more than 20 initiatives to tackle nuisance behaviour when the real focus should be on good policing. Home Office Minister Hazel Blears also revealed this week that "about a third" of Asbos were breached with some people jailed and others not.


Ex Home Secretary David Blunkett has given fresh clues that the general election will be announced on Monday. He told BBC Radio Five Live: "I'm out in my constituency getting ready for what we presume will be an announcement very shortly at the weekend." He clarified that he meant he would be in his Sheffield seat this weekend, not that he expected an election call then. Tony Blair is tipped to ask the Queen on Monday to dissolve Parliament ready for a 5 May poll.


The events leading to David Blunkett's resignation must not "swept under the carpet", the Tories have warned. On Wednesday Tony Blair said he hoped the former home secretary would serve again in government in the future. Mr Blunkett quit in December after a probe linked him to the visa application of his ex lover's nanny. Mr Blair said he left "without a stain on his character" but Tory Dominic Grieve branded the way Mr Blunkett's office operated as "scandalous". Mr Blair told BBC Radio 4's Today programme: "I know David very well and I believe him to be a man of real integrity and real ability and I was very sad for him as to what happened." He said Mr Blunkett still had an immense amount to offer the country but he was not making any "guarantees or definitive statements" about future jobs. But shadow attorney general Mr Grieve said: "While I don't rule out the possibility that Mr Blunkett may return as a minister, I don't think it's something that can simply be brushed under the carpet." Senior Labour backbencher Martin O'Neill, who chairs the Commons trade committee, said he believed the prime minister would want one of his "praetorian guard" a reference to the elite body guard of Roman emperors back alongside him. But colleague Ian Gibson, who chairs the science and technology committee, said there was a "question mark" as to whether Mr Blunkett could serve at cabinet level again.


Britain's Kelly Holmes marked her first appearance on home soil since winning double Olympic gold with 1500m victory at the Norwich Union International. Holmes hit the front just before the bell in front of a sell out crowd in Glasgow and cruised to victory in a time of four minutes 14.74 seconds. "It was nice to get that out of the way. I was nervous about whether I would actually be able to get round. "I felt good. I just had to relax and use my racing knowledge," said Holmes. "It was all about winning in front of my home crowd. The time is irrelevant. "I got round in one piece and didn't disgrace myself. Now it's about going forward. "The reception I've had since the Olympics has been amazing and that's why I wanted to keep running this year, because I get a buzz from the crowd." Holmes ran a tactically perfect race to finish clear of France's Hind Dehiba and Russia's Svetlana Cherkasova. The Olympic 800m and 1500m champion's time was inside the qualifying mark for the European Indoor Championships in Madrid in March. But the 34 year old would not reveal whether she intended to run or not, having previously indicated she would leave a decision until after the Birmingham Grand Prix on 18 February.


Talks on Russia's proposed membership of the World Trade Organisation (WTO) have been "making good progress" say those behind the negotiations. But the chairman of the working party, Ambassador Stefan Johannesson of Iceland, warned that there was "still a lot of work has to be done". His comments came as President George W Bush said the US backed Russian entry. But he said for Russia to make progress the government must "renew a commitment to democracy and the rule of law". His comments come three days before he is due to meet President Vladimir Putin. Russia has been waiting for a decade to join the WTO and hopes to finally become a member by early 2006. A decision could be reached in December, when the WTO's 148 current members gather for a summit in Hong Kong. That would allow an earliest date for membership of January 2006, if the Hong Kong summit gave its approval. While pinpointing several areas in which there are difficulties in the bilateral and multilateral work with Russia, the US said the meeting was "much more efficient than we've seen for some time". And Australia said it was "one of the best (meetings) we can recall in terms of substance". Mr Johannesson also said progress "on the bilateral market access side is accelerating". Sticking points to membership have included limits on foreign ownership in the telecommunications and life insurance businesses, as well as issues surrounding counterfeiting, piracy, and data protection. Some WTO members also dislike Russia's energy price subsidies, which competitors say give Russian businesses an unfair advantage.


Cash machine networks could soon be more susceptible to computer viruses, a security firm has warned. The warning is being issued because many banks are starting to use the Windows operating system in machines. Already there have been four incidents in which Windows viruses have disrupted networks of cash machines running the Microsoft operating system. But banking experts say the danger is being overplayed and that the risks of infection and disruption are small. For many years the venerable IBM operating system, known as OS/2, has been the staple software used to power many of the 1.4m cash machines in operation around the world. But IBM will end support for OS/2 in 2006 which is forcing banks to look for alternatives. There are also other pressures making banks turn to Windows said Dominic Hirsch, managing director of financial analysis firm Retail Banking Research. He said many cash machines will also have to be upgraded to make full use of the new Europay, Mastercard and Visa credit cards that use computer chips instead of magnetic stripes to store data. US laws that demand disabled people get equal access to information will also force banks to make their cash machines more versatile and able to present information in different ways. Todd Thiemann, spokesman for anti virus firm Trend Micro, said the move to Windows in cash machines was not without risks. Mr Thiemann said research by the TowerGroup showed that 70% of new cash machines being installed were Windows based. Already, he said, there have been four incidents in which cash machines have been unavailable for hours due to viruses affecting the network of the bank that owns them. In January 2003 the Slammer worm knocked out 13,000 cash machines of the Bank of America and many of those operated by the Canadian Imperial Bank of Commerce. In August of the same year, cash machines of two un named banks were put out of action for hours following an infection by the Welchia worm. Incidents like this happen, said Mr Thiemann, because when banks start using Windows cash machines they also change the networking technology used to link the devices to their back office computers. This often means that all the cash machines and computers in a bank share the same data network. "This could mean that cash machines get caught up in the viruses that are going around because they have a common transmission system," he said. "Banks need to consider protection as part of the investment to maintain the security of that network," Mr Thiemann told BBC News Online. But Mr Hirsch from Retail Banking Research said the number of cash machines actually at risk was low because so few were upgraded every year. Currently, he said, a cash machine has a lifetime of up to 10 years which means that only about 10% of all ATMs get swapped for a newer model every year. "Windows cash machines have been around for several years," he said. "Most banks simply upgrade as part of their usual replacement cycle." "In theory there is a bigger threat with Windows than OS/2," he said, "but I do not think that the banks are hugely concerned at the moment." "It's pretty unusual to hear about virus problems with ATMs," he said. The many different security systems built in to cash machines meant there was no chance that a virus could cause them to start spitting out cash spontaneously, he said. Banks were more likely to be worried about internal networks being overwhelmed by worms and viruses and customers not being able to get cash out at all, he added. A spokesman for the Association of Payment and Clearing Services (Apacs) which represents the UK's payments industry said the risk from viruses was minimal. "There's no concern that there's going to be any type of virus hitting the UK networks," he said. Risks of infection were small because the data networks that connect UK cash machines together and the operators of the ATMs themselves were a much smaller and tightly knit community than in the US where viruses have struck.


The Conservatives' campaign director has denied a report claiming he warned Michael Howard the party could not win the next general election. The Times on Monday said Australian Lynton Crosby told the party leader to focus on trying to increase the Tories' Commons presence by 25 to 30 seats. But Mr Crosby said in a statement: "I have never had any such conversation... and I do not hold that view." Mr Howard later added there was not "one iota" of truth in the report. The strategist helped Australia's PM, John Howard, win four elections. Mr Howard appointed Mr Crosby as his elections chief last October. Mr Crosby's statement said: "The Conservative Party has been making an impact on the issues of lower tax and controlled immigration over the past week." It added: "The Labour Party will be wanting to do all they can to distract attention away from the issues that really matter to people."


Former Worldcom boss Bernie Ebbers, who is accused of overseeing an 11bn ( 5.8bn) fraud, never made accounting decisions, a witness has told jurors. David Myers made the comments under questioning by defence lawyers who have been arguing that Mr Ebbers was not responsible for Worldcom's problems. The phone company collapsed in 2002 and prosecutors claim that losses were hidden to protect the firm's shares. Mr Myers has already pleaded guilty to fraud and is assisting prosecutors. On Monday, defence lawyer Reid Weingarten tried to distance his client from the allegations. During cross examination, he asked Mr Myers if he ever knew Mr Ebbers "make an accounting decision?". "Not that I am aware of," Mr Myers replied. "Did you ever know Mr Ebbers to make an accounting entry into Worldcom books?" Mr Weingarten pressed. "No," replied the witness. Mr Myers has admitted that he ordered false accounting entries at the request of former Worldcom chief financial officer Scott Sullivan. Defence lawyers have been trying to paint Mr Sullivan, who has admitted fraud and will testify later in the trial, as the mastermind behind Worldcom's accounting house of cards. Mr Ebbers' team, meanwhile, are looking to portray him as an affable boss, who by his own admission is more PE graduate than economist. Whatever his abilities, Mr Ebbers transformed Worldcom from a relative unknown into a 160bn telecoms giant and investor darling of the late 1990s. Worldcom's problems mounted, however, as competition increased and the telecoms boom petered out. When the firm finally collapsed, shareholders lost about 180bn and 20,000 workers lost their jobs. Mr Ebbers' trial is expected to last two months and if found guilty the former CEO faces a substantial jail sentence. He has firmly declared his innocence.


Sixways Friday, 25 February 2000 GMT They make just one change, with Tim Collier replacing Phil Murphy in the second row. In contrast, Sale are missing 14 players due to a combination of international call ups and injuries. John Payne and Chris Rhys Jones come into the centres while scrum half Richard Wigglesworth looks set to play on the wing. Delport; Pieters, Rasmussen, Lombard, O'Leary; Brown, Powell; Windo, Van Niekerk, Horsman; Collier, Gillies; Hickey, Sanderson, MacLeod Henderson. Replacements: Fortey, Murphy, Daly, Vaili, Cole, Hayes, Trueman. Hanley; Mayor, Payne, Rhys Jones, Wigglesworth; Hercus, Redpath (capt); Turner, Roddam, Stewart; Day, Schofield; Caillet, Carter, Chabal. Replacements (from): Bozzi, Coutts, Anglesea, Lund, Martens, Riley, Duffy, C Jones.


If broadband were a jumbo jet, then 2003 would have seen it taxiing down the runway, firing up its engines and preparing for take off. But this year has seen it soar. In the spring it literally took to the skies as Lufthansa and British Airways trialled it on flights. This perhaps said more about how indispensable people were beginning to perceive the technology, rather than how useful sky high broadband would actually be. It was flying high and by the autumn, five million Britons had signed up for high speed net access at home. Such enthusiasm is unlikely to dampen any time soon and experts predict that by the end of next year the numbers will have risen to more than eight million, or more than 30% of homes. The two key factors in whetting people's appetite were falling prices and a huge marketing push. When operators such as BT and Telewest offered standard 512K broadband for less than 20 at the beginning of the year, it was as if an invisible barrier had been breached broadband had truly gone mass market. A feeding frenzy followed as firms vied for eyeballs in a price war reminiscent of that following the mass market take up of dial up. Broadband for less than 10 was even touted by some firms, although such a low price raised eyebrows among more established companies questioning how they are able to sustain such business models. For those who became broadbanders in 2004 there was no turning back and the days of waiting for the modem to kick in began to seem as outdated an idea as a jungle without celebrities. The rest of the world was also falling in love with the benefits of fast internet access, to the tune of 100 million connections worldwide by April, prompting research firm Point Topic to declare it one of the fastest growing technologies ever. By September, the number of broadband connections in the UK finally overtook dial up and in December BT announced that it was making a new broadband connection every 10 seconds. Broadband was being mentioned on the 10 O'clock News and in the tabloids; the Sun even carried a cartoon joke about it. But two of the most significant pieces of news for broadband were items that did not make the headlines. In May, BT quietly announced that it was shaving 70% off the cost of allowing other operators access to its telephone exchanges, so called local loop unbundling. The vital local loop is the crucial link between telephone exchanges and homes. At the moment BT has a stranglehold on more than 80% of these lines making it the key voice in deciding what ADSL products get into homes. With cheaper local loop unbundling, rivals to BT can offer faster services that will leave the broadband of today looking positively tortoise like. It will mean the UK will finally catch up with countries such as France and the Netherlands, where homes are routinely enjoying speeds of up to 15Mb (megabits per second). And the major price fall means that, rather than just talk about it, companies are actually starting to get their own equipment into BT's exchanges. It may not seem that exciting but it is a remarkable transition given that just a few years ago the arguments over local loop unbundling bore more than a passing resemblance to the Northern Ireland peace talks fraught, bitter and with no end in sight. Another big piece of news for broadband users in 2004 was the extension of BT's reach, meaning more than 95% of the population could get broadband, regardless of how far away from the exchange they lived. There was a slight caveat for those wanting to upgrade to 1Mbps broadband, they still have to live within six kilometres of a broadband enabled exchange. For thousands frustrated by their inability to get the technology, the news meant they could finally join in. Broadband is not just about fast access over the telephone and cable operators NTL and Telewest also had a bumper year. The biggest news for them was increased speeds, introducing 2Mb and 3Mb services for users and offering a free upgrade to those on 512K. The cable operators are limited in their reach and it is perhaps testament to how big a deal local loop unbundling could become that even they are considering extending their range via this route. Broadband can seem confusing for consumers, with the huge amount of operators offering so many different products, some with capped bandwidth and different length contracts and set up fees. It is unlikely to get any less easy to understand in 2005 but remains a plane worth catching. As it gets faster and offers extras such as cheap telephone calls online, the only real thing to remember for the coming year is to enjoy the ride.


Two of the largest airlines in the US American and Southwest have blamed record fuel prices for their disappointing quarterly results. American Airlines' parent AMR reported a loss of 387m ( 206m) for the fourth quarter of 2004, against a 111m loss for the same period a year earlier. Meanwhile, Southwest Airlines saw its fourth quarter 2004 profits fall 15% to 56m, against 66m a year earlier. Both said high fuel bills would continue to pressure revenues in 2005. American, the world's biggest airline by some measures, said it expected to report a loss for the first quarter of 2005. Southwest, which has the highest market value of any US carrier, said it would remain profitable despite high fuel prices. AMR's shares were flat in Wednesday morning trading on the New York Stock Exchange, as the results were slightly better than analysts had anticipated. AMR's chief executive Gerard Arpey said the airline's difficulties reflected the situation within the industry. "AMR's results for the fourth quarter of 2004 reflect the economic woes that plagued the airline industry throughout 2004 in particular, high fuel prices and a tough revenue environment," he said. For the full year, AMR posted a loss of 761m, lower than 2003's 1.2bn loss and an indication that the airline has successfully cut costs. AMR added that as part of its cost cutting measures, it is postponing the delivery of 54 Boeing jets. Shares in Southwest fell 65 cents to 14.35 as analysts voiced their disappointment. "The results came in below our already conservative estimate for the quarter," said Ray Neidl, an analyst at Calyon Securities. Both American and Southwest have been squeezed by cut throat competition in the US airline industry, as a glut of available seats has led to fierce price reductions.


The South African government has put tax cuts and increased social spending at the centre of its latest budget. Aiming to both stir economic growth and aid the country's poor, finance minister Trevor Manuel said the focus of the 2005 budget was "more for all". The tax cuts target firms and individuals, cutting corporate tax from 30% to 29% and offering income tax cuts worth 6.8bn rand ( 1.2bn; 910m). Spending on health and education will rise by 9.4% and 8.1% respectively. Spending on housing and sanitation will rise by 12%. All the spending increases will run over the next three years. Unveiling the 418bn rand budget to parliament, Mr Manuel said the South African economy had grown by an average of 3.2% over the past four years, slightly below the African average of 4%. He predicted that the South African economy would grow by 4.3% in 2005 and 4.2% in 2006. Mr Manuel added that inflation fell to 4.3% in 2004 and is expected to remain at between 3% and 6% from now until at least 2008, helped by interest rates which are at their lowest level in 24 years. Given that both corporate and personal taxes are being cut under the new measures, those earning less than 35,000 rand a year will be exempt from income tax the extra 22.3bn rand in social spending will be partly met by higher fuel, tobacco and alcohol taxes. "In this budget, the focus is on more for all, not more for some, and not a hell of a lot more for a few, but spread across all of South Africa," said Mr Manuel. He said that the economic situation was a "marked improvement" on the position at the end of apartheid, but acknowledged that more needed to be done to improve the lives and livelihoods of the disadvantaged. About 280,000 jobs a year have been created in South Africa since 2000 but unemployment remains high, currently close to 30%. Economist Colen Garrow said the budget looked as if it would stimulate economic growth. "It's pleasant to see the cut in company taxes, it's a good incentive for business," he said.


England prop Phil Vickery is staying positive despite a broken arm ruling him out of the RBS Six Nations. The 28 year old fractured the radius in his right forearm during Gloucester's 17 16 win over Bath on Saturday. He will undergo an operation on Monday and is expected to be out for at least six weeks. He said: "This isn't an injury that will stop me from working hard on the fitness elements and being around the lads." He added: "I've got the operation this afternoon and I could be back doing fitness work after a week." "As frustrating as it is, I've got to be positive." After the game, Vickery spoke with Bath prop David Barnes, who also broke his arm recently. "I had a chat with David Barnes and it looks like a similar injury to him," he said. "He said he had the operation and he was back running after a week. "There's no doubt that I'm going to get involved and be around this place as soon as I can after the operation." Gloucester director of rugby Nigel Melville said: "Phil has broken his radius, which is the large bone in his forearm. "I don't really know how it happened, but Phil will definitely be out of action for at least six weeks. "I feel very sorry for him, as he has been in great shape. He really needed 80 minutes of rugby this weekend, and then this happened. Mentally, it must be very hard for him."


International oil and mining companies have reacted cautiously to Russia's decision to bar foreign firms from natural resource tenders in 2005. US oil giant Exxon said it did not plan to take part in a new tender on a project for which it had previously signed a preliminary agreement. Miner Highland Gold said it regretted any limit on privatisation while BP, a big investor, declined to comment. Only firms at least 51% Russian owned will be permitted to bid. The Federal Natural Resources Agency said "the government is interested in letting Russian companies develop strategic resources". The foreign ownership issue will be dealt with according to Russia's competition law, natural resources minister Yuri Trutnev was quoted as saying by the Interfax news agency. No further details were given, with Mr Trutnev suggesting that Russia may decide on a case by case basis. Observers said that the move may represent a shift in policy, as the administration of Vladimir Putin puts the protection of national interests above free market dynamics. Russia recently wrested back control of a large chunk of its oil industry from stock market listed company Yukos, a move that prompted calls of outrage from many investors. Analysts warned that it was still too early to draw too many conclusions from this new set of proposals. Companies echoed this sentiment, saying that they would require more information before ringing the alarm bells. "It's not good. But it is very understandable," said Al Breach, an economist at UBS Brunswick. "But if the investment climate is stable that's much more important. "Foreigners of course would like to have free entry but... this is not the end of the world." A number of other nations, including Mexico, Saudi Arabia and Kuwait, protect their national resources from foreign firms. What has surprised observers is that since the collapse of communism Russia has been courting foreign investment. BP spent 7.5bn to create Russian registered oil company TNK BP, and has a partnership to develop the Sakhalin 5 petroleum field with state owned Rosneft. Exxon, the world's largest oil company, has signed preliminary agreements to develop the Sakhalin 3 field. Company spokesman Glenn Waller said Exxon still considered the deal valid, despite Russia inviting new offers for the land block. According to Mr Waller, Exxon "were not planning to bid at a new tender anyway". "We regret the ministry has taken such a decision," said Ivan Kulakov, deputy chairman of Highland Gold a mining firm that has the motto "Bringing Russia's Gold to Market". "It would be a shame if that has a negative impact on the investment climate." Other firms that have been linked with investment in Russia include France's Total, the US based ChevronTexaco, and miner Barrick Gold.


The former chief financial officer at US telecoms firm WorldCom has admitted before a New York court that he used to lie to fellow board members. Speaking at the trial of his former boss Bernard Ebbers, Scott Sullivan said he lied to the board to cover up the hole in WorldCom's finances. Mr Ebbers is on trial for fraud and conspiracy in relation to WorldCom's collapse in 2002. He pleads not guilty. The firm had been overstating its accounts by 11bn ( 8.5bn). Mr Sullivan, 42, has already pleaded guilty to fraud and will be sentenced following Mr Ebbers' trial, where he is appearing as a prosecution witness. Mr Ebbers, 63, has always insisted that he was unaware of any hidden shortfalls in WorldCom's finances. In the New York court on Wednesday, Mr Ebbers' lawyer Reid Weingarten asked Mr Sullivan: "If you believe something is in your interest, you are willing and able to lie to accomplish it, isn't that right?" "On that date, yes. I was lying," replied Mr Sullivan. Mr Weingarten has suggested that Mr Sullivan is implicating Mr Ebbers only to win a lighter sentence, something Mr Sullivan denies. Mr Sullivan also rejects a suggestion that he had once told fellow WorldCom board member Bert Roberts that Mr Ebbers was unaware of the accounting fraud at WorldCom. The trial of Mr Ebbers is now into its third week. Under 23 hours of questioning from a federal prosecutor, Mr Sullivan has previously told the court that he repeatedly warned Mr Ebbers that falsifying the books would be the only way to meet Wall Street revenue and earnings expectations. Mr Sullivan claims that Mr Ebbers refused to stop the fraud. Mr Ebbers could face a sentence of 85 years if convicted of all the charges he is facing. WorldCom's problems appear to have begun with the collapse of the dotcom boom which cut its business from internet companies. Prosecutors allege that the company's top executives responded by orchestrating massive fraud over a two year period. WorldCom emerged from bankruptcy protection in 2004, and is now known as MCI.


The Labour Party received more than 5m in donations in the final quarter of 2004, new figures show. This is nearly half of the 11,724,929 received by 16 political parties listed by the Electoral Commission. The Conservatives were in second place with donations totalling 4,610,849, while the Liberal Democrats received just over 1m. The majority of Labour's donations came from affiliated trade unions. There were also large sums from individuals. Lord Drayson, whose company PowderJect won multi million pound contracts to provide smallpox vaccine to the government after the 11 September terror attacks, gave 500,000 to the party just days before Christmas. This followed an earlier donation of the same amount earlier in 2004. He was made a lord by Tony Blair last year. Other significant donations came from retired millionaire businessman and philanthropist Sir Christopher Ondaatje who gave the party a sum of 500,000, and refrigerator magnate William Haughey OBE who gave 330,000. The totals for the fourth quarter were well up on the same period of 2003, as the parties built up their war chests for the general election campaign. The largest donation to the Conservatives was a bequest from Ruth Beardmore of nearly 400,000. The joint founder of merchant bank Hambro Magan gave 325,417. There were also donations topping 250,000 for the Conservatives from Scottish Business Groups Focus on Scotland and the Institute of International Research, the world's largest independent conference company. Also among the gifts to the Tories were 24 donations totalling 161,840 from Bearwood Corporate Services. This company is controlled by the party's former treasurer Lord Ashcroft which has directed almost 300,000 to specific marginal constituencies over the past two years. The Liberal Democrats' largest donor was the Joseph Rowntree Reform Trust Ltd, a company which promotes political reform and constitutional change, which gave a sum of 250,000. And fast food giants McDonald's are listed as donating a sum of 10,575. This was a fee the firm paid for a room for an event held with the work and skills foundation during the party's conference. The UK Independence Party, which lost its main donor Paul Sykes amid the row over Robert Kilroy Silk's bid for the leadership last autumn, took in 63,081. Just 8,170 of this was cash and the remainder came in gifts in kind, such as office space and printing. Registered political parties are required to set out each quarter all donations over 5,000 to their headquarters and over 1,000 to local constituency parties they receive. It is an offence for a person to knowingly or recklessly make a false declaration about party donations.


Manchester City striker Nicolas Anelka has issued an apology for criticising the ambitions of the club. Anelka was quoted in a French newspaper as saying he would like to play in the Champions League for a bigger club. But chairman John Wardle said: "I've spoken to Nicolas and he's apologised for anything that might have been mistakenly taken from the French press. "We are a big club. Nicolas told me that he agrees with me that we are a big club." Wardle was speaking at the club's annual general meeting, where he also confirmed the club had not received any bids for the former Arsenal and Real Madrid striker. The club still owe French club PSG 5m from the purchase of Anelka in May 2002. He has been linked with a move to Barcelona and Liverpool, and Reds skipper Steven Gerrard also revealed he is an admirer from his time on loan at Anfield. But Wardle added: "There's been no bids for Nicolas Anelka. No one has come to me and said I would like to buy Nicolas Anelka. "If a bid comes in for Nicolas Anelka I will speak to the board and then speak to Kevin Keegan. "If there was a bid and it was a bid of substance and worth taking then between us we'd decide. "We still owe some money on Nicolas which we have clear out, so it would have to be above that." Wardle did stress that the club was not inviting any offers for England winger Shaun Wright Phillips. He added: "I've no intention of selling Shaun Wright Phillips. "If someone comes with a silly bid I'll have to discuss it. "But we're not putting him on the shelf to sell. He is the heart and soul of this club and has his heart and sole in this club, and he would be very upset if I put him in the shop window. "He was an academy kid here, he's just signed a new four year deal, I don't think he'd do that unless he wanted to play for Manchester City Football Club." City recently announced debts of 62m, but Wardle confirmed they would try and find funds to bring in players in the January transfer window. He said: "Like Kevin I'd like to see some players come in. We've got to see what we can do whether it's a on a Bosman or not. "We will try to be creative to generate some funds. But maybe we have to start looking at clubs like Everton and Bolton to see how they have been dealing in the transfer market and do a similar type of thing."


Writing a Microsoft Word document can be a dangerous business, according to document security firm Workshare. Up to 75% of all business documents contained sensitive information most firms would not want exposed, a survey by the firm revealed. To make matters worse 90% of those companies questioned had no idea that confidential information was leaking. The report warns firms to do a better job of policing documents as corporate compliance becomes more binding. Sensitive information inadvertently leaked in documents includes confidential contractual terms, competitive information that rivals would be keen to see and special deals for key customers, said Andrew Pearson, European boss of Workshare which commissioned the research. "The efficiencies the internet has brought in such as instant access to information have also created security and control issues too," he said. The problem is particularly acute with documents prepared using Microsoft Word because of the way it maintains hidden records about editing changes. As documents get passed around, worked on and amended by different staff members the sensitive information finds its way into documents. Poor control over the editing and amending process can mean that information that should be expunged survives final edits. Microsoft, however, does provide an add on tool for Windows PCs that fixes the problem. "The Remove Hidden Data add in is a tool that you can use to remove personal or hidden data that might not be immediately apparent when you view the document in your Microsoft Office application," says the instructions on Microsoft's website. Microsoft recommends that the tool is used before people publish any Word document. A tool for Apple machines running Word is not available. Workshare surveyed firms around the world and found that, on average, 31% of documents contained legally sensitive information but in many firms up to three quarters fell in to the high risk category. Often, said Mr Pearson, this sensitive information was invisible because it got deleted and changed as different drafts were prepared. However, the way that Windows works means that earlier versions can be recalled and reconstructed by those keen to see how a document has evolved. Few firms have any knowledge of the existence of this so called metadata about the changes that a document has gone through or that it can be reconstructed. The discovery of this hidden information could prove embarrassing for companies if, for instance, those tendering for contracts found out about the changes to terms of a deal being negotiated. The research revealed that a document's metadata could be substantial as, on average, only 40% of contributors' changes to a document make it to the final draft. Problems with documents could mean trouble for firms as regulatory bodies step up scrutiny and compliance laws start to bite, said Mr Pearson.


French consumers increased their spending by 1.5% in January, a figure which bodes well for the country's economic growth, figures revealed. The National Statistic Institute (INSEE) added that consumer spending in January rose 3.8% on a year on year basis. Rising sales of household equipment were behind the increase. The INSEE also said that French consumer prices fell 0.6% in January, but were up 1.6% on an annual basis. Despite the general increase in spending in January, French households bought fewer cars in January. According to the INSEE, car sales fell 2.8% in January, following a fall of 0.6% in December. But on a year on year basis, the sector still saw a sales increase of 6.5%. Consumer spending fuelled France's economic growth in the last quarter of 2004 and analysts expect that it will continue to support the economy. "It's a growth that will remain fragile and vulnerable to risks like a strong rise in long term interest rates, tension in the oil price," Emmanuel Ferry, from Exane BNP Paribas told Reuters news agency. Meanwhile in Italy, consumer confidence rose to its highest level since October 2004. Economic research group ISAE has said that Italian consumer confidence rose to 104.4 from 103.3, despite a slight deterioration in short term sentiment.


Liverpool manager Rafael Benitez admitted victory against Deportivo La Coruna was vital in their tight Champions League group. Jorge Andrade's early own goal gave Liverpool a 1 0 win. And Benitez said: "We started at a very high tempo and had many chances. It is a very important win for us and we could have scored more goals. "We were very good defensively and also good on the counter attack. We are pleased but move on to the next game." Igor Biscan was outstanding in midfield after replacing injured Xabi Alonso, and Benitez said: "He played very well. "It is important to have all the players ready and a good squad so you can play more games at a high level." Benitez added: "It is all back in our own hands now, it was a great win for us and I was delighted with what I feel was the best Liverpool I have seen. "As far as my feelings about winning in Spain, that is really not important. "I want to see us win away matches in the Champions League, that it was in Spain was not my first consideration. "As far as I am concerned it is important for Liverpool to win, it is not important in what country it is in." Benitez added: Benitez said: "We had a problem before the start, it was decided that Xabi could not play more than 45 minutes. "But in the end because of the way that (Dietmar) Hamann and (Igor) Biscan performed, we did not need to change things until right at the end of the match. "Depor are a good team and if you allow them to keep possession they can be very dangerous indeed. "But we knew that if we hit them on the counter attack it would make them nervous, and that is how it worked out." Deportivo coach Javier Irureta said: "Liverpool played very well and we just could not break them down. "I know we have now gone six games at home in Europe without scoring, but that does not reflect our overall performances. "But this time we did not play well and we lacked imagination. "The goal was a bad mistake and a big blow to our confidence. Players who usually want the ball at that stage did not want it. "I know we are bottom of the group, but as long as there is hope of qualifying, we will hang on to that."


Justine Henin Hardenne lost to Elena Dementieva in a comeback exhibition match in Belgium on Sunday for her second defeat in two days. And the Belgian, who has slipped to eight in the world after struggling with a virus, faces a tough Australian Open title defence next month. "I will be heading to Australia with a lot of question marks over me, I know that," she said. "But I think there'll be less pressure than last time even if I am champion." Henin Hardenne was speaking after a 6 2 5 7 6 2 loss to world number six Dementieva in Charleroi, Belgium, on Sunday. The previous day, the Olympic champion went down 6 2 7 5 to France's Nathalie Dechy. "I have to be positive, I still have a few weeks," she said. "My body has to get accustomed again to the stress, the rhythm." Henin Hardenne slid down the world rankings in the second half of 2004 after contracting the illness in April. After an initial lay off, she was forced off the circuit for a second time after being knocked out of the French Open in the second round. A comeback at the US Open after a three month absence ended when she crashed out at the fourth round stage. But despite her problems, she still won five of the nine official tournaments she entered in 2004 and won Olympic gold in Athens, an achievement which saw her named Belgian sportswoman of the year on Friday. "Physically, it's obvious that I hit rock bottom," said the 22 year old, who will make her comeback in the Sydney International from 10 16 January. "Since April, with the exception of the Olympics, I have not done much. "All the successes I had prior to that were mainly due to the work I put in on building up my fitness. "Now it's time to get back to putting in 200% effort and I think I am capable of doing that."


India has raised the limit for foreign direct investment in telecoms companies from 49% to 74%. Communications Minister Dayanidhi Maran said that there is a need to fund the fast growing mobile market. The government hopes to increase the number of mobile users from 95 million to between 200 and 250 million by 2007. "We need at least 20bn ( 10.6bn) in investment and part of this has to come as foreign direct investment," said Mr Maran. The decision to raise the limit for foreign investors faced considerable opposition from the communist parties, which give crucial support to the coalition headed by Prime Minister Manmohan Singh. Potential foreign investors will however need government approval before they increase their stake beyond 49%, Mr Maran said. Key positions, such as those of chief executive, chief technology officer and chief financial officer are to be held by Indians, he added. Analysts and investors have welcomed the government decision. "It is a positive development for carriers and the investment community, looking to take a longer term view of the huge growth in the Indian telecoms market," said Gartner's principal analyst Kobita Desai. "The FDI relaxation coupled with rapid local market growth could really ignite interest in the Indian telecommunication industry," added Ernst and Young's Sanjay Mehta. Investment bank Morgan Stanley has forecast that India's mobile market is likely to grow by about 40% a year until 2007. The Indian mobile market is currently dominated by four companies, Bharti Televentures which has allied itself with Singapore Telecom, Essar which is linked with Hong Kong based Hutchison Whampoa, the Sterling group and the Tata group.


Trouble hit Mitsubishi Motors is in talks with French carmaker PSA Peugeot Citroen about a possible alliance. On Tuesday Mitsubishi, the only major Japanese car firm in the red, confirmed earlier reports of negotiations. But a spokesman refused to comment on speculation that Mitsubishi could end up building cars for PSA and perhaps its Japanese rival Nissan. Mitsubishi has been hit by a recall scandal and the withdrawal of support from shareholder DaimlerChrysler. The US German firm, once a majority shareholder, decided last April to stop providing financial backing. Mitsubishi's sales have slid 41% in the past year, catalysed by the revelation that the company had systematically been hiding records of faults and then secretly repairing vehicles. Mitsubishi is due to unveil a recovery plan later in January. Analysts said that alliances with other carmakers would be a necessary part of whatever it came up with, not least because its own slow sales have left its manufacturing capacity under used.


Some of the most vivid descriptions of the devastation in southern Asia are on the internet in the form of web logs or blogs. Bloggers have been offering snapshots of information from around the region and are also providing some useful information for those who want to help. Indian writer Rohit Gupta edits a group blog called Dogs without Borders. When he created it, the site was supposed to be a forum to discuss relations between India and Pakistan. But in the wake of Sunday's tsunami, Mr Gupta and his fellow bloggers switched gears. They wanted to blog the tsunami and its aftermath. One Sri Lankan blogger in the group goes by the online name Morquendi. With internet service disrupted by the tsunami, Morquendi started sending SMS text messages via cell phone from the affected areas of Sri Lanka. "We started publishing these SMSes," says Mr Gupta. "Morquendi was describing scenes like 1,600 bodies washed up on a shore, and people burying, and burying and burying them. People digging holes with their hands. And this was coming through an SMS message. "We didn't have visual accounts on radio or on TV, or in the print media." Soon, thousands of web users around the world were logging on to read Morquendi's first hand accounts. In one message, Morquendi wrote about a Sri Lankan woman who was running home with a friend when the wave hit. "She was being swept away," Morquendi's message read. "She grabbed a tree with one hand and her friend with the other. She says she watched the water pull her friend away." Mr Gupta says the power of Morquendi's text message blogs was palpable. "He was running around, looking for friends, burying bodies, carrying bodies," Mr Gupta says of Morquendi. "I can't even begin to imagine the psychological state he was in when he was sending us reports, and doing the relief work at the same time. "He was caught between being a journalist and being a human being." Others blogs are helping to spread information about relief efforts. Dina Mehta is an Indian blogger who's helping with the newly created South East Asia Earthquake and Tsunami Blog. She says the blog is not meant to be filled with first person accounts. "What we're doing is we're building a resource," she says. "Anyone who says, OK, I want to come and do some work in India, volunteer in India, or in Sri Lanka or Malaysia, this is the sort of one stop shop that they can come to for all sorts of resources emergency help lines, relief agencies, aid agencies, contacts for them etc." Ms Mehta also says she wishes that governments in the region would realise the power of blogs. "Imagine if they had this resource available to them, if there was a disaster, how quickly you could funnel aid in, and get people to help," she says. Bloggers in the United States are also getting involved. Ramdhan Yadav Kotamaraja is originally from India, but now lives in Dallas. Mr Kotamaraja wanted to help those affected by the tsunami by pooling money with concerned friends. So, he set up an online payment system on his website. Then, says Mr Kotamaraja, the blogging world found out. "All my blogger friends started linking up my site, and I saw a lot of people other than my friends. I'd say 70% of the donations came from people I don't know. "It's simply unbelievable to me, that people that I don't know will come and start donating." News spreads quickly on weblogs, a phenomenon that helps bloggers expand their audience and scope. In Sri Lanka, blogger Morquendi is recruiting others to help. One recruit calls himself Heretic. In one of his latest posts, Heretic asks: "Have you ever seen fishing trawlers on the road? Ever seen a bus inside a house? "Well," Heretic writes, "that was just the least affected areas so you can just imagine or can you?" He concludes: "Keep it blogged." Clark Boyd is technology correspondent for The World, a BBC World Service and WGBH Boston co production.


US behemoth General Electric has posted an 18% jump in quarterly sales, and in profits, and declared itself "in great shape". "We are benefiting from our growth initiatives and an excellent global economy," said GE's chief executive Jeff Immelt. GE is the US' biggest firm based on stock market valuation. GE's net profits were 5.37bn ( 2.86bn) for the final three months of 2004, while sales came in at 43.7bn. The group, whose businesses range from jet engines to the NBC television channel, forecast sustained growth at between 10 15% for this year and next. GE's shares rose 1% on the news before ending Friday 0.24% lower. "The industries GE is in are doing very well. The materials, financial and industrial sectors are all picking up," said Steve Roukis, an analyst at fund manager Matrix Asset Advisors, which has shares in GE. GE said orders in the fourth quarter were 15% higher than in the same period of 2003, "with growth across the board". "In the fourth quarter, nine of our 11 businesses delivered at least double digit earnings growth," said Mr Immelt. Full year 2004 gains were less spectacular, but still respectable. Net profit was up 6% at 16.6bn. Last year, GE bought Vivendi Universal, merging it with NBC to form NBC Universal. The success of Universal Studio's film 'Ray', a portrait of jazz musician Ray Charles, has helped boost earnings at the unit.


Result: Nadal 6 7 (6/8) 6 2 7 6 (8/6) 6 2 Roddick Spain's Rafael Nadal beats Andy Roddick of the USA in the second singles match rubber of the 2004 Davis Cup final in Seville. Spain lead 1 0 after Carlos Moya beat Mardy Fish in straight sets in the opening match of the tie. Nadal holds his nerve and the crowd goes wild as Spain go 2 0 up in the tie. Roddick holds serve to force Nadal to serve for the match but the American surely cannot turn things around now. Nadal works Roddick around the court on two consecutive points to earn two break points. One is enough, the Spaniard secures the double break and Roddick is now teetering on the edge. Roddick is trying to gee himself up but the clay surface is taking its toll on his game and he is looking tired. Nadal wins the game to love. Nadal steps up the pressure to break and Spain have the early initiative in the fourth set. Nadal also holds convincingly as both players feel their way into the fourth set. Roddick shrugs off the disappointment of losing the third set tiebreak and breezes through his first service game of the fourth set. Nadal earns the first mini break in the tiebreak as the match enters its fourth hour. A couple of stunning points follow, one where Nadal chases down a Roddick shot and turns into a passing winner. Then Roddick produces some amazing defence at the net to take the score to 4 4. Roddick has two serves for the set but double faults to take the score to 5 5. Nadal saves a Roddick set point then earns his own with a drive volley and a crosscourt passing winner sends the crowd wild. Nadal tries to up his aggression and he passes Roddick down the line to go 15 40 and two set points up. Roddick saves the first with a desperate lunge volley and smacks a volley winner across the court to take the score back to deuce before securing the game. The set will go to another tiebreak. Nadal enjoys another straightforward hold and Roddick must once again serve to stay in the set. Roddick again holds on, despite some brilliant shot making from his opponent. Nadal races through his service game to put the pressure straight back onto Roddick. Roddick hangs in on his serve to level matters but Nadal is making him fight for every point. Nadal could be suffering a disappointment hangover from the previous game as he goes 0 30 down and then has to save a break point after a tremendous rally in which he is forced into some brilliant defence. But it pays off and the Spaniard edges ahead in the set. Roddick's serve is not firing as ferociously as usual and has to rely on his sheer competitive determination to stay in the set. Three times, Nadal forces a break point and three times the world number two hangs in. And Roddick's grit pays off as he manages to hold. Roddick still looks a bit sluggish but he attacks the net and is rewarded with a break point, which Nadal saves with a good first serve and the Spaniard goes on to hold. There is a disruption in play as Roddick is upset about something in the crowd. The Spanish captain gets involved as does the match referee but it is unclear what the problem is. One thing for certain is that the crowd are roused into support of Nadal and they go wild when Roddick loses the next point and goes break point down. Roddick saves the break point and then bangs down his ninth ace before clinching the game with a service winner. The game passes the two hour mark as Nadal holds serve to edge ahead in the third set. Now Roddick has to defend a break point and he produces a characteristic ace to save it. It is immediately followed by another and he holds with a little dinked half volley winner. Roddick is looking a little leaden footed but does carve out a break point for himself. But he plays it poorly and Nadal avoids the danger. Roddick has gone off the boil and again struggles. He fails to get down properly for a low forehand volley and gives Nadal three break points. The American blasts an ace to save one but follows up with a double fault and the rubber is level. Nadal edges towards taking the second set with a comfortable hold. Two good serves put Roddick 30 0 up but he then makes a couple of errors to find himself 30 40 down. He saves the break point with an ace and then manages to hold. Roddick's level has dropped while Nadal is on a hot streak. The Spaniard includes a superb crosscourt winner off the back foot as he races through his service game without dropping a point. Roddick double faults twice and Nadal takes full advantage of the break point offered, powering a passing winner past Roddick. Nadal wins another tight game. Neither player has dipped from the high standard of play in the first set. Nadal puts the American under pressure and Roddick saves a break point with a superb stop volley before going on to hold. Nadal puts the disappointment of losing the first set tiebreak to claim the opening game in the second. Roddick double faults to concede the first mini break and then Nadal loops a crosscourt winner to seize advantage in the tiebreak. He lets one slip but wins his next serve to earn three set points. But Roddick saves them and then earns one himself. Nadal comes up with a down the line winner but then nets tamely on Roddick's next set point. Nadal's nerve is tested as he tries to force a tiebreak. Both players come up with some scintillating tennis and the Spaniard has several chances to clinch the game before finally doing so when Roddick drives wide. A pulsating game sees Nadal racing round the court retrieving and refusing to give Roddick any easy points. The point of the match so far involves Roddick's slam dunk smash being returned by Nadal before Roddick finally manages to end the rally. On the very next point, Nadal blasts a forehand service return from right of court that passes Roddick and even the American is forced to applaud. But Roddick comes up with two big serves to polish off the game. Nadal outplays Roddick to reach 40 0 but the American fights back to 40 30 before Nadal's powerful crosscourt forehand winner secures the game. The crowd are getting very involved, cheering between Roddick's first and second serves. But the American comes through to hold and edge ahead in the set. Nadal manages to hold again despite Roddick piling the pressure on his serve. The Spaniard wins the game courtesy of another lucky net cord. Roddick double faults buts manages to keep his composure. A well placed serve is unreturnable and Roddick holds. A powerful ace down the middle gives Nadal a simple love service game the first time he has held serve so far in the match. If Roddick didn't know before, he knows now that he is in a real contest. Another superb game as Nadal breaks to once again lift the roof. He produces some fine groundstrokes to leave Roddick chasing shadows. Four of the first five games have seen a break of serve. Despite the disappointment of losing his serve, Roddick is not phased and storms into a 40 15 lead when the umpire leaves his seat to confirm a close line call. Nadal takes the next point but Roddick breaks again with a sharp volley at the net. Roddick's advantage is short lived as Nadal breaks back immediately. A fortunate net cord helps the Spaniard on his way and when Roddick fires a forehand cross court shot wide to lose his serve, Nadal pumps his fist in celebration. The American is pumped up for this clash and takes on Nadal's serve from the start. Nadal's drop shot is agonisingly called out and Roddick claims the vital first break. After Moya's win in the opening rubber, a raucous Seville crowd is buoyed by Nadal's impressive start which sees him race into a 30 0 lead. However Roddick fights back to hold his serve.


The European Central Bank has left its key interest rate unchanged at 2% for the 19th month in succession. Borrowing costs have remained on hold amid concerns about the strength of economic growth in the 12 nations sharing the euro, analysts said. Despite signs of pick up, labour markets and consumer demand remain sluggish, while firms are eyeing cost cutting measures such as redundancies. High oil prices, meanwhile, have put upward pressure on the inflation rate. Surveys of economists have shown that the majority expect borrowing costs to stay at 2% in coming months, with an increase of a quarter of a percentage point predicted some time in the second half of the year. If anything, there may be greater calls for an interest rate cut, especially with the euro continuing to strengthen against the dollar. "The euro land economy is still struggling with this recovery," said economist Dirk Schumacher. The ECB "may sound rather hawkish but once the data allows them to cut again, they will." Data coming out of Germany on Thursday underlined the problems facing European policy makers. While Germany's economy expanded by 1.7% in 2004, growth was driven by export sales and lost some of its momentum in the last three months of the year. The strength of the euro is threatening to dampen that foreign demand in 2005, and domestic consumption currently is not strong enough to take up the slack. Inflation in the eurozone, however, is estimated at about 2.3% in December, above ECB guidelines of 2%. ECB President Jean Claude Trichet has remained upbeat about prospects for the region, and inflation is expected to drop below 2% later in 2005. The ECB has forecast economic growth in the eurozone of 1.9% in 2005.


Johnny O'Connor is determined to make a big impression when he makes his RBS Six Nations debut for Ireland against Scotland on Saturday. The Wasps flanker replaces Denis Leamy but O'Connor knows that the Munster man will be pushing hard for a recall for the following game against England. "It's a 'horses for courses' selection really," said O'Connor. "There's a lot of competition here and I can't just drag my heels around if I don't get picked." It looks a definite head to head battle between himself and 23 year old Leamy three stone heavier than O'Connor for the number seven role against the world champions. Nonetheless, all O'Connor is currently concerned about is making an impression while winning his third cap. "Missing the Italian game was disappointing certainly, but you can't dwell on these things it's part and parcel of rugby. "Denis has been playing really well and deserved his opportunity. "It's a good situation to be in if there are good players around you, pushing for a place in the side." O'Connor, who celebrated his 25th birthday on Wednesday, was touted by Wasps director of rugby Warren Gatland as a possible 2005 Lions Test openside as far back as last September. And his reputation as a breakdown scavenger and heavy hitter has seen him come to the forefront of O'Sullivan's mind for the Scottish tussle. O'Connor added: "It will be interesting to see how situations on the deck is reffed, with the new laws having come in. "Obviously the breakdown a big part of what I do on the pitch so I'm hoping to hold some influence there against what is a very solid Scottish pack." O'Connor will be winning his third cap after making his debut in the victory over South Africa last November.


Conchita Martinez won her first title in almost five years with victory over Anna Lena Groenefeld at the Volvo Women's Open in Pattaya, Thailand. The 32 year old Spaniard came through 6 3 3 6 6 3 for her first title since Berlin in 2000. "It feels really good," said Martinez, who is playing her last season on the Tour. "To come through like that in an important match feels good. "It's been nearly five years and I didn't think I could do it." Groenefeld was the more powerful player but could not match her opponent's relentless accuracy. "It was my first final, a new experience," said the German. "I think she played a good match, a tough match, but I tried to stay in there. I think the whole week was good for me."


Japan's Sumitomo Mitsui Financial has withdrawn its takeover offer for rival bank UFJ Holdings, enabling the latter to merge with Mitsubishi Tokyo. Sumitomo bosses told counterparts at UFJ of its decision on Friday, clearing the way for it to conclude a 3 trillion yen ( 29bn) deal with Mitsubishi. The deal would create the world's biggest bank with assets of about 189 trillion yen ( 1.8 trillion). Sumitomo's exit ends the most high profile fight in Japanese bank history. UFJ Holdings, Japan's fourth largest bank, has been at the centre of a fierce bid battle over the last year. Sumitomo, Japan's third largest bank, tabled a higher offer for UFJ than its rival, valuing the company at 35bn. However, UFJ's management was known to prefer the offer from Mitsubishi Tokyo Financial Group (MTFG), Japan's second largest bank. Concerns were also raised about Sumitomo's ability to absorb UFJ and the former has now admitted defeat. "We believe the market and most investors accept a UFJ MTFG merger," Sumitomo said in a statement. "Given the ongoing integration of UFJ and MTFG operations, persisting with our proposal may not be in the best interests of our shareholders or UFJ's." Mitsubishi's takeover of UFJ which will be Japan's largest ever takeover deal will still have to be approved by shareholders of the two firms. However, this is expected to be a formality. Sumitomo may now turn its attention to deepening its ties with Daiwa Securities, another Japanese financial firm. The two are set to merge their venture capital operations and there has been speculation that this could lead to a full blown merger. Japanese banks are increasingly seeking alliances to boost profits.


Former Southampton manager Gordon Strachan has rejected the chance to become Portsmouth's new boss. The Scot was Pompey chairman Milan Mandaric's first choice to replace Harry Redknapp, who left Fratton Park for rivals Saints earlier in December. "I think it's a fantastic job for anybody apart from somebody who has just been the Southampton manager," Strachan told the BBC. Club director Terry Brady held initial talks with Strachan on Saturday. The former Scotland international added that joining Southampton's local rivals would not be a wise move. "It's got everything going for it but I've got too many memories of the other side and I don't want to sour those memories," he said. "Everything's right it's 10 minutes away, there are good players there, a good set up, a good atmosphere at the ground. "There's lots to do but it's not right for somebody who has just been the Southampton manager." Since Redknapp's departure, executive director Velimir Zajec and coach Joe Jordan have overseen first team affairs. The duo had gone five matches unbeaten until Sunday's 1 0 defeat at home to champions Arsenal, but the club are still in a respectable 12th place in the Premiership table. Strachan left St Mary's in February, after earlier announcing his intention to take a break from the game at the end of the 2003 04 season. His previous managerial experience came at Coventry, whom he led for five years from 1996 to 2001.


Vote For Me ITV1's Pop Idol style talent contest for would be politicians finally hits our screens this week. Over the next four days, hundreds of potential candidates will be whittled down by a panel of experts and public vote. The winner will then be encouraged to stand as an independent at the next general election, which is expected in the spring. But opinion is divided on whether any of the potential candidates unearthed so far have got what it takes to make it in politics. "Any of them would make competent MPs," former independent MP Martin Bell insisted on BBC Radio 4's Today programme. Mr Bell, who will be offering his advice to the contestants on Wednesday, argues that Westminster has its share of "odd balls" and the show will engage ordinary voters. "If it gets more people voting and more people interested in politics there is no harm in that," he said. But Sir Bernard Ingham, Margaret Thatcher's former press secretary, took a less charitable view, accusing the programme of "corrupting politics". He said the producers would not achieve their aim of re engaging voters "with that bunch of nutters". To give Sir Bernard his dues, Monday evening's opening episode did attract more than a smattering of eccentrics and self publicists. Among those chancing their arm were a druid priest and a former porn star, who insisted on removing her top to make her point about the legalisation of brothels. Among the more eccentric policy proposals was a public holiday on Bruce Forsyth's birthday and Bill Oddie for prime minister. The show follows the time honoured Pop Idol format, with queues of nervous hopefuls and a panel of three experts judging their performance. The contestants were given 60 seconds to present their manifestos. Then the final 25 were tested on their lobbying ability. They were then cross examined by the panel, which was chaired by ex ITN political editor John Sergeant, with television host Lorraine Kelly taking the Nicki Chapman role. But the real star of the show is Kelvin MacKenzie, in the Simon Cowell, Mr Nasty seat. The former Sun editor dispensed a stream of well crafted insults and one liners. His advice for one young contestant was to "get a haircut and a brain transplant". Wheelchair user Kevin Donnellon was asked: "Why on earth do you want our elected representatives to be disabled?" "Don't you care about the Inuit?", implored guitar toting environmental campaigner Barry Lim. "I don't care about them. I care about myself and when the sun's shining I think fantastic," replied Mr MacKenzie. Mr Lim later reduced the panel to fits of giggles as he outlined his plan to make people do community service instead of paying taxes. "When the prime minister turns to the chancellor and says how much have we got in the coffers Mr Brown, he says well, prime minister, bad news, all the houses in Britain have been painted but actually nobody has paid any tax," observed Mr MacKenzie. "That was an total disaster. I just couldn't seem to think of things to say," a crestfallen Mr Lim confided in the show's presenter, Jonathan Maitland. Irfan Hanif, a 25 year old doctor from Bolton, made a good impression, even if he was a little thrown by Mr MacKenzie's suggestion that instead of being treated by the NHS, young drunks should "given a good beating" and left to die. Dominic Carman son of late libel lawyer George Carman was voted through to the final 25, on a platform of cutting defence spending to boost education. Opinion was more divided over Rodney Hylton Potts, a 59 year old convicted fraudster. Mr MacKenzie thought the smooth talking former solicitor with a hardline on crime and immigration deserved a chance to progress. "He could join the rest of the crooks in the Houses of Parliament." But Ms Kelly said she "would not trust him as far as she could throw him". The series continues throughout the week, with the public given the chance to evict one prospective MP every night. ITV will not fund the election campaign for the eventual winner, but the publicity could give the winner a flying start over other candidates.


The US stock market watchdog's chairman has said he is willing to soften tough new US corporate governance rules to ease the burden on foreign firms. In a speech at the London School of Economics, William Donaldson promised "several initiatives". European firms have protested that US laws introduced after the Enron scandal make Wall Street listings too costly. The US regulator said foreign firms may get extra time to comply with a key clause in the Sarbanes Oxley Act. The Act comes into force in mid 2005. It obliges all firms with US stock market listings to make declarations, which, critics say, will add substantially to the cost of preparing their annual accounts. Firms that break the new law could face huge fines, while senior executives risk jail terms of up to 20 years. Mr Donaldson said that although the Act does not provide exemptions for foreign firms, the Securities and Exchange Commission (SEC) would "continue to be sensitive to the need to accomodate foreign structures and requirements". There are few, if any, who disagree with the intentions of the Act, which obliges chief executives to sign a statement taking responsibility for the accuracy of the accounts. But European firms with secondary listings in New York have objected arguing that the compliance costs outweigh the benefits of a dual listing. The Act also applies to firms with more than 300 US shareholders, a situation many firms without US listings could find themselves in. The 300 shareholder threshold has drawn anger as it effectively blocks the most obvious remedy, a delisting. Mr Donaldson said the SEC would "consider whether there should be a new approach to the deregistration process" for foreign firms unwilling to meet US requirements. "We should seek a solution that will preserve investor protections" without turning the US market into "one with no exit", he said. He revealed that his staff were already weighing up the merits of delaying the implementation of the Act's least popular measure Section 404 for foreign firms. Seen as particularly costly to implement, Section 404 obliges chief executives to take responsibility for the firm's internal controls by signing a compliance statement in the annual accounts. The SEC has already delayed implementation of this clause for smaller firms including US ones with market capitalisations below 700m ( 374m). A delegation of European firms visited the SEC in December to press for change, the Financial Times reported. It was led by Digby Jones, director general of the UK's Confederation of British Industry (CBI) and included representatives of BASF, Siemens and Cadbury Schweppes. Compliance costs are already believed to be making firms wary of US listings. Air China picked the London Stock Exchange for its secondary listing in its 1.07bn ( 558m) stock market debut last month. There are also rumours that two Chinese state run banks China Construction Bank and Bank of China have abandoned plans for multi billion dollar listings in New York later this year. Instead, the cost of Sarbanes Oxley has persuaded them to stick to a single listing in Hong Kong, according to press reports in China.


Non European Union citizens wanting to work in the UK will have to undergo tests for Tuberculosis and HIV, under plans unveiled by the Conservatives. A positive test for TB would mean visa applications being turned down, while HIV would be dealt with case by case. Leader Michael Howard said the checks on new arrivals would help protect public health and the NHS. Labour said many tests were already done. The Lib Dems warned both parties against "pandering to prejudice". The proposals, which would be brought in if the Conservatives won the General Election, would not apply to people coming to the UK for less than six months unless they intended to work in health or childcare or teaching. Mr Howard said the plans were based on policies already in action in Canada, New Zealand and Australia. "It's very important that we should safeguard the good standards of public health that Britain enjoys," he told BBC Radio 4's Today programme. Government figures suggest TB in England has increased by 25% over the past 10 years. "Nearly two thirds of people with TB are born abroad," said Mr Howard. "I don't think a responsible government can stand aside and do nothing in the face of this problem." But Mr Howard said the plans would not affect asylum applicants' claims. The proposals include: People coming to the UK from outside the EU for between six and 12 months from a "high incidence TB country" will have to undergo a chest X ray. People coming to settle in the UK permanently from outside the EU will have to "demonstrate they have an acceptable standard of health". They will also have to show they are unlikely to be a danger to public health and are unlikely to "impose significant costs or demands" on the NHS. The tests will include a health check, chest X rays for TB (except for children and pregnant women) and tests for hepatitis and HIV for over 16 year olds. Only the discovery of TB will mean people will be automatically denied a visa, other conditions will be dealt with on a "case by case basis". There is already some screening in place. Last year 185,000 people were tested for TB at Heathrow and Gatwick airports, only about 200 were found to be infected. And Dr John Moore Gillon, of the British Lung Foundation, said: "TB is not simply imported, we are seeing a rise in many sections of the UK born population as well." The government says the Tories are "a bit late" to the issue. Immigration minister Des Browne quoted its five year plan for immigration and asylum, as saying: "We are implementing our existing powers by targeted health screening for TB in high risk areas at the entry clearance stage. "Those who are diagnosed would then need to seek treatment at home before being allowed to enter the UK." Meanwhile Mark Oaten, Liberal Democrat home affairs spokesman, said: "This is another worrying step in the war of words over asylum and immigration between Labour and the Conservatives. "Michael Howard knows perfectly well what bigger game he is playing, and history proves it is a very dangerous one." Lisa Power, head of policy at Aids charity the Terrence Higgins Trust said the policy was prejudice based rather than evidence based. "In fact, it would be more likely to drive people with health conditions to falsify tests while others gain entry by simple dint of their EU status," she said.


House prices fell further in November and property sale times lengthened as rate rises took their toll, the Royal Institute of Chartered Surveyors found. A total of 48% of chartered surveyor estate agents reported lower prices in the three months to November the highest level in 12 years. Meanwhile the number of sales dropped 32% to an average of 22 per surveyor. The amount of unsold properties on their books rose for the sixth month in a row to an average of 67 properties. "The slowdown occurring in the market has given buyers more power to negotiate, but this time of year is traditionally a quiet one," RICS housing spokesman Ian Perry said. "The decision by the Bank of England not to increase interest rates further and the healthy economy is allowing confidence to consolidate." The figures support recent data from the government and other bodies which all point to a slowdown in the housing market. On Monday, the Council of Mortgage Lenders, British Bankers Association and Building Societies Association all said mortgage lending was slowing. The figures were published as another survey by property website Rightmove said the average asking price of a home fell by more than 600 from 190,329 in November to 189,733 in December. Around the UK, the Midlands and South saw the biggest price falls, while London prices fell but at less than the national rate. In Scotland, where prices have remained on an upward path, increases were more "moderate", RICS added. But the news failed to dent confidence that sales will recover in future, with surveyors at their most optimistic in a year as new purchase inquiries stabilised despite holding at lower levels. "Sales usually pick up in the New Year and I am confident this year will be no exception," Mr Perry added. Looking ahead, the group is anticipating a quiet start to 2005 with the market picking up in the second half prompting a 3% rise in prices over the coming 12 months.