Political parties cannot afford to take older UK voters for granted in the coming election, says Age Concern. A survey for the charity suggests 69% of over 55s say they always vote in a general election compared with just 17% of 18 to 24 year olds. Charity boss Gordon Lishman said if a "decisive blow" was struck at the election it would be by older voters who could be relied on to turn out. A total of 3,028 adults aged 18 or over were interviewed for the study. Mr Lishman urged the next government to boost state pension. He also called for measures to combat ageism and build effective public services to "support us all in an ageing society". "Older people want to see manifesto commitments that will make a difference to their lives," Mr Lishman said. "Political parties must wake up to the fact that unless they address the demands and concerns of older people they will not keep or attract their vote." In the survey carried out by ICM Research, 14% of people aged between 18 and 34 said they never voted in general elections. Among the over 65s, 70% said they would be certain to vote in an immediate election, compared with 39% of people under 55. Age Concern says the over 55s are "united around" key areas of policy they want the government to focus on. For 57%, pensions and the NHS were key issues, while the economy was important for a third, and tax was a crucial area for 25%. The report was welcomed by Conservative shadow pensions secretary David Willetts. "The pensioners' voice must certainly be heard in the next election as they have never fitted into Blair's cool Britannia," he said. "Labour's continued refusal to admit the true extent of the pensions crisis will be one of the monumental failures of this government." He pointed to Tory plans to increase the basic state pension to reduce means testing, strengthen company pensions and encourage savings. A Liberal Democrat spokesman said the party took the issues raised in the report very seriously. He highlighted the party's promises to raise the basic state pension, provide free long term care for the elderly and replace council tax, seen as a particular problem for pensioners on fixed incomes. Labour has said it wants to use savings reforms to Incapacity Benefit to improve the basic state pension and has set up a review of the council tax system.


Tory leader Michael Howard has gone on the offensive in response to people questioning how a son of immigrants can propose asylum quotas. Mr Howard, whose parents fled the Nazi threat to come to the UK, says the claim would mean no one from an immigrant family could become premier. His comments come in a BBC documentary called 'No More Mr Nasty'. TV presenter Anne Robinson said as home secretary he gave the impression he would "like to kick your cat". Ms Robinson, a friend of the Tory leader, also revealed that as a Cambridge student Mr Howard was "much loved by women and he was a courteous and kind and rather dashing lover" although she denied having personal experience. "I wasn't at Cambridge and it's not personal experience but I know people who were." Documentary maker Michael Cockerell was given behind the scenes access to Mr Howard for his film portrait. The Tory leader was asked about to respond to people who said that if there had there been a quota on immigration and asylum in the 1930s, his parents might not have been allowed into the country. He replies: "What is the inference of that? "That if you reach the view that you need to control immigration in the interests of the country you're not allowed to put a view forward if you happen to be descended from immigrants? "That seems to me an absolutely extraordinary proposition? It would certainly mean no one from immigrant parents could be prime minister." Ms Robinson, who presents The Weakest Link tells Cockerell that she despaired at his hardline image when he was home secretary in John Major's government. "I used to have to sit on my hands because he'd get on television and give a passable impression of someone who'd like to kick your cat or would put your baby in prison if he cried. I mean it was very, very Draconian." The film shows Mr Howard laughing at Rory Bremner's impression of him as Dracula, which he calls "good fun", apart from the serious falsehood of a comment suggesting he wants fewer black people in the UK. The film shows the private side of the Tory leader watching television at home or playing table tennis with his wife, ex model Sandra. Asked if she enjoys a game of ping pong she confesses: "Yeah, it would be more enjoyable if I could win occasionally too, but otherwise it's quite fun." Former Downing Street communications chief Alastair Campbell, now working on Labour's election campaign, says a "touchy feely" image does not fit Mr Howard. He says Tony Blair was not worried by his opponents' early performance in their Commons clashes because Mr Howard lacked a "big strategy", including on issues like Iraq. The Tory leader brands such criticisms as "absolutely rubbish", arguing that he has been consistent on his support for the war but critical of Mr Blair's failure to tell the truth on intelligence. Former Tory chancellor Ken Clarke says Mr Howard has a bigger problem changing perceptions of the Tory party than his personal image. Mr Clarke says the party is improving and it is "conceivable" it could win the next election. But he adds: "It has got to change itself a bit and broaden its appeal." Michael Howard: No More Mr Nasty is being shown on BBC2 on Saturday 12 February at 2005 GMT.


Fox hunting with dogs is now illegal in England and Wales after a ban on the activity came into force overnight. The law faces a stiff test this weekend, with the Countryside Alliance saying many hunts will be out in force. Chief police officers spokesman Nigel Yeo said he expected most people would obey the law by drag hunting or chasing foxes then shooting them. He said police would challenge the "one of two isolated hunts" which are threatening to break the law. But Simon Hart of the Countryside Alliance has questioned how police will ensure there are no violations. "The definitions of legal and illegal hunting are so blurred that the police are being asked to make impossible judgements. "You can hunt a rat, but not a mouse, a rabbit but not a hare, an artificial scent, but not a real one," he said. The Attorney General, Lord Goldsmith, has so far issued no instructions to police on how they should deal with hunters who violate the law. He said he will consult the Director of Public Prosecutions and the police "in the near future" to decide what measures to take with regards to hunting prosecutions. He has rejected a "blanket policy" of not enforcing the ban until the House of Lords has considered its legality. John Cooper, a barrister and chairman of the League Against Cruel Sports, said the anti hunting lobby expects the authorities to prosecute wherever there is clear evidence of illegal hunting practices. He said police had "acknowledged their duty to investigate allegations of hunting offences". The Beaufort Hunt had one pack out on Thursday and has promised a hunt this weekend. Under the new law hunters have a number of legal options available to them. As well as being able to mount a hunt for an artificial scent, it will still be legal for the hunts to "flush out" foxes, as long as they shoot their quarry rather than set the hounds on them. "We are not going away. We will keep these hounds going, we will keep this community going and in the end we will come back and hunt when hunting is legal again," hunt master, Captain Ian Farquhar, said. But Tony Banks, Labour MP for West Ham, said the issue would soon disappear, and that "people in a few years time will be wondering what it was all about". He said had the government not prevaricated since 1997 in introducing the ban, hunting with dogs would have passed into history like other former country pursuits such as otter hunting and badger baiting. "Let the election decide this because the Conservatives have made clear that if they get elected into government they will restore hunting," he said.


England captain Jonny Wilkinson will make his long awaited return from injury against Edinburgh on Saturday. Wilkinson, who has not played since injuring his bicep on 17 October, took part in full contact training with Newcastle Falcons on Wednesday. And the 25 year old fly half will start Saturday's Heineken Cup match at Murrayfield on the bench. But Newcastle director of rugby Rob Andrew said: "He's fine and we hope to get him into the game at some stage." The 25 year old missed England's autumn internationals after aggravating the haematoma in his upper right arm against Saracens. He was subsequently replaced as England captain by full back Jason Robinson. Sale's Charlie Hodgson took over the number 10 shirt in the internationals against Canada, South Africa and Australia. Wilkinson's year has been disrupted by injury as his muscle problem followed eight months on the sidelines with a shoulder injury sustained in the World Cup final.


Legal attacks on websites that help people swap pirated films have forced the development of a system that could be harder to shut down. One site behind the success of the BitTorrent file swapping system is producing its own software that avoids the pitfalls of the earlier program. A test version of the new Exeem program will be released in late January. But doubts remain about the new networks ability to ensure files being swapped are "quality copies". In late December movie studios launched a legal campaign against websites that helped people swap pirated movies using the BitTorrent network. The legal campaign worked because of the way that BitTorrent is organised. That file sharing system relies on links called "trackers" that point users to others happy to share the file they are looking for. Shutting down sites that listed trackers crippled the BitTorrent network. One of the sites shut down by the legal campaign was suprnova.org which helped boost the popularity of the BitTorrent system by checking that trackers led to the movies or TV programmes they claimed to. Now the man behind suprnova.org, who goes by the nickname Sloncek, is preparing to release software for a new file swapping network dubbed Exeem. In an interview with Novastream web radio, Sloncek said Exeem would combine ideas from the BitTorrent and Kazaa file sharing systems. Like BitTorrent, Exeem will have trackers that help point people toward the file they want. Like Kazaa these trackers will be held by everyone. There will be no centrally maintained list. This, said Sloncek, should make the system less vulnerable to legal action aimed at stopping people swapping pirated movies and music. The Exeem software has been under development for a few months and is currently being tested by a closed group of users. An early public version of the software should be available before February. Sloncek said that currently only a Windows version of the software was in development. There were no plans for a Linux or Mac version. He said that costs of writing the software will be paid for by adverts appearing in the finished version of the program. Despite Suprnova administrator Sloncek's involvement with Exeem, the basic technology appears to have been developed by a firm called Swarm Systems that is based on Caribbean island Saint Kitts and Nevis. Users of the Exeem system will be able to rate files being swapped to help stop the spread of fake files, Sloncek told Novastream. Dr Johan Pouwelse, a researcher at the Delft University of Technology who studies peer to peer networks, said Exeem was the next evolution in file sharing systems. But, he said, it would struggle to be as popular as BitTorrent and Suprnova because early versions were not taking enough care to make sure good copies of files were being shared. "Exeem cannot prevent pollution," he said. "The rating system in Exeem seems flawed because it is easy to insert both fake files and fake ratings," he said. Studies have shown that organisations working for record labels and movie studios have worked to undermine Kazaa by putting in fakes. By contrast moderators on Suprnova made sure files being shared were high quality. "The moderators are the difference between having a system that works and one that's full of crap like Kazaa," he said. "There is a fundamental tension between distribution and integrity," he said. Mr Pouwelse said that future versions of file sharing systems are likely to incorporate some kind of distributed reputation system that lets moderators prove who they are to the network and rate which files are worth downloading. When big files were being shared moderation systems were key, said Mr Pouwelse. He added that the legal attacks on BitTorrent had driven people away from sites such as Suprnova but many users had simply migrated to other tracker listing sites many of which have seen huge increases in traffic. "It's hard to compete with free," he said. No one from the Motion Picture Association of America was immediately available for comment on the file sharing development.


Aston Villa boss David O'Leary signed a three and a half year contract extension on Thursday, securing his future at the club until summer 2008. O'Leary's future was in question, but Villa chairman Doug Ellis said he was happy to secure the deal. "David's record since his arrival in 2003 is excellent and he shares the board's amibitions in taking this club forward," he told Villa's website. "For this reason it was important we got this right." O'Leary put pen to paper after deals were sorted for his right hand men Roy Aitken and Steve McGregor. "It was important to me Roy and Steve, an integral part of my team, should stay for the same time," O'Leary said on Thursday ahead of signing his new deal. "Someone has to try and put Aston Villa back where they should belong and I'm up for the challenge."Earlier in December, there were rumours O'Leary would quit if he is not offered a new deal before the end of the season. But he denied that, saying he was happy to take on the challenge of improving Villa's fortunes in the long term. "I want to make sure by the end of the five years I would have been in charge that Villa are achieving top six finishes in the Premiership on a regular basis," said O'Leary, who took over at Villa Park in May 2003. "But to achieve that, and take the next step forward, we do need to bring in quality players. "I would like a couple next month if at all possible to set us on the way." Meanwhile, O'Leary has rapped skipper Olof Mellberg for his comments before Sunday's derby with Birmingham. Mellberg spoke of his dislike of Villa's rivals ahead of the match, which Steve Bruce's side won 2 1. "I've had more than a quiet word with Olof. It's been said within the whole group, not as a one to one," he told Villa's website. "You shouldn't leave yourself open to be shot down. You shouldn't give people the chance to take cheap shots at you and he set himself up for that."


The Conservative Party would deal "sympathetically" with any application by disgraced peer Lord Archer to rejoin its ranks, its co chairman has said. Dr Liam Fox told BBC One's Breakfast with Frost programme there was no place for "vindictiveness" in politics. Lord Archer spent two years in prison after being convicted of perjury and perverting the course of justice. The former Tory deputy chairman's five year suspension from the party has just elapsed. A jury ruled that Lord Archer lied during a libel trial against the Daily Star at the High Court in London in 1987. He won damages after the newspaper printed allegations about involvement with a prostitute. Dr Fox was asked if he would say yes or no if Lord Archer applied to rejoin. "I'm sure that in line with people having served their sentence and having done some reparations for what they did wrong, we would look at that sympathetically. "I don't believe in vindictiveness, I don't think that has any place in politics, unlike the prime minister and Alastair Campbell." Tory peer Lord Tebbit said he agreed with Dr Fox's view, and said the case should be looked at on its merits. "After all, he is far from being the worst perjurer in the world," he added. Meanwhile, senior Conservative MP Sir Teddy Taylor warned that moves bring Lord Archer back into the fold could be controversial. He said: "I suppose, on a Sunday in particular, we should always make provision for forgiving sinners. But there is no doubt it would be controversial." Lord Archer, who was not available for comment, remains a popular figure among constituency Tory parties and is a successful fundraiser. He has not been seen in the House of Lords since his release from prison in July 2003, although there is nothing in the rules to prevent him from attending.


A slump in profitability at luxury car maker Mercedes has prompted a big drop in profits at parent DaimlerChrysler. The German US carmaker saw fourth quarter operating profits fall to 785m euros ( 1bn) from 2.4bn euros in 2003. Mercedes Benz's woes its profits slid to just 20m euros obscured a strong performance from the Chrysler group whose returns met market expectations. Mercedes faces fierce competition in the luxury car sector from BMW and but hopes to revive its fortunes by 2006. Mercedes' profits over the period compared unfavourably with 2003's 784m euro figure and were well below analyst expectations of 374m euros. For the year as a whole, its operating profits fell 46% to 1.6bn euros. Sales of Mercedes' brands fell 2% as demand cooled, while revenues were affected by the weakness of the US dollar. The carmaker blamed the fall in profits on high launch costs for new models and losses from its Mercedes Smart mini car range. Mercedes is hoping to increase productivity by 3bn euros, having negotiated 500m euros in annual savings with German workers last year. The firm said it was determined to retain Mercedes' position as the world's most successful luxury brand. However, DaimlerChrysler's shares fell 1.5% on the news. "While all these divisions are doing well the big worries continue to surround Mercedes Benz," Michael Rabb, an analyst with Bank Sal Oppenheim, told Reuters. In contrast, Chrysler enjoyed a 5% annual increase in unit sales while revenues calculated in US dollars rose 10%. The US division whose marques include Dodge and Jeep transformed a full year operating loss of 506m euros in 2003 into a 1.4bn euros profit last year. Overall, DaimlerChrysler saw worldwide vehicle sales rise 8% to 4.7 million in 2004 while total revenues added 4% to 142bn euros. Chrysler's strong performance helped the world's fifth largest carmaker boost net income by 400m euros to 2.5bn euros. "The year 2004 shows that our strategy works well even in such a challenging competitive environment," said Jurgen Schrempp, DaimlerChrysler's chairman. DaimlerChrysler took a 475m euro hit in costs stemming from a defects scandal at its joint venture, Japanese subsidiary Fuso. DaimlerChrysler last week agreed a compensation package with partner Mitsubishi Motors which will see it buy out its stake in Fuso. Looking forward, DaimerChrysler's profits are expected to be slightly higher in 2005. However, it is expecting "significant improvements" in profitability in 2006 as a result of a major investment in the Mercedes product range.


Council tax in Scotland is set to rise by an average of about 4% in the coming year, BBC Scotland has learned. Authorities will decide final figures on Thursday when projected increases will be more than twice the rate of inflation, which is currently 1.6%. The finance minister has urged councils to limit increases but they have warned that they will struggle to maintain services unless funding is increased. They say much additional government money is for new initiatives. Scottish Finance Minister, Tom McCabe MSP, said: "Last week in parliament I announced an additional 419m for core expenditure to local government in Scotland. "That's a 5.5% increase and sits against an inflation rate of 1.6%, so I think we have quite rightly said to councils this year that we would at the very least ask them to exercise restraint." Mr McCabe is also looking for local authorities to become more efficient and save money in coming years. He told BBC Radio Scotland's Sunday Live programme: "Here in Scotland we have 32 councils who all have their own individual collection systems for council tax, they have their own payroll systems and their own human resource systems. "We think there has to be opportunities there for rationalisation and using the money saved to reinvest in frontline services." The councils' umbrella organisation Cosla, which provided BBC Scotland with the indicative figures for next year, warned that councils would face a continuous struggle to maintain services. Mr McCabe has promised them about 8.1bn next year. "However, most of the increase is targeted to new initiatives and councils will experience difficulties in maintaining core services," a Cosla spokesman said. Cosla says that it is willing to work with the executive on finding efficiency savings but that these will not be enough to maintain services. They say the funding plans for the next three years will see councils lose more of the share of public spending. The Conservatives accuse the Scottish Executive of using the council tax to raise funds because it is too afraid to raise income tax. The Tory finance spokesman, Brian Monteith MSP, said: "Its a form of disguise... yet again we see that council tax is being used as a way of passing on costs. "Scared of actually using its three pence income tax that it could put up, what we've seen over the years is more and more burdens being put onto local authorities and the council tax payer having to pick up the bill." There are also warnings that unless funding to councils is increased in the next few years then services may have to be reduced. Linda Knox, Director of the Scottish Local Authority Management Centre at Strathclyde University, said: "With this current settlement the increase is slowing. At the same time, the burdens on councils are greater than they were. "The settlement figures don't include pay increases and the executive is also requiring a substantial figure in the area of 325m in efficiency savings across the settlement period." Education will be protected from any cuts but Linda Knox says this will mean other services will suffer. She said: "In practice, that will mean a 4 5% cut for other services. On the face of it the settlement looks like an increase of about 9.7% but by the time you take into account other factors its probably only about 1% in real terms."


Real Madrid are closing in on a 2m deal for Everton's Thomas Gravesen after the Dane's agent travelled to Spain to hold talks about a move. John Sivabaek told BBC Sport: "I'm here to listen to what Real have to say. Nothing has been agreed, but this is a big opportunity for any player." The 28 year old's contract expires in the summer, but Real want a quick deal. Sivabaek added: "I will be meeting Real on Wednesday. There is serious interest, but it is Everton's hands." Everton must decide whether to cash in now on the Denmark midfield man, or risk losing him for nothing in the summer. Manager David Moyes has defiantly claimed that he expects Gravesen to still be at Everton when the transfer window closes at the end of January. Moyes said: "I speak to Tommy regularly and we know where we are at. "There's been no contact. We don't want to lose him." Real Madrid general manager Arrigo Sacchi is the driving force behind the move, convincing vice president Emilio Butragueno and new coach Wanderley Luxemburgo that Gravesen is the right man for the Bernabeu. Everton must weigh up whether it is worth taking the money on offer for Real and risk their own ambitions for European football. Gravesen has been outstanding as Everton have established themselves in the Premiership's top four this season.


Broadcasters should fix a date for a pre election televised debate between the three main political leaders, according to the Hansard Society. It would then be up to Tony Blair, Michael Howard and Charles Kennedy to decide whether to take part, the non partisan charity said. Chairman Lord Holme argued that prime ministers should not have the right of veto on a matter "of public interest". "The broadcasters should make the decision to go ahead," he said. Lord Holme's proposal for a televised debate comes just four months after millions of viewers were able to watch US President George W Bush slug it out verbally with his Democratic challenger John Kerry. He said it was a "democratically dubious proposition" that it was up to the incumbent prime minister to decide whether a similar event takes place here. If Mr Blair did not want to take part, the broadcasters could go ahead with an empty chair or cancel the event and explain their reasons why, Lord Holme said. "What makes the present situation even less acceptable is that although Mr Howard and Mr Kennedy have said they would welcome a debate, no one has heard directly from the prime minister," he said. "It has been left to nudges and winks, hints and briefings from his aides and campaign managers to imply that Mr Blair doesn't want one, but we haven't heard from the prime minister himself." Lord Holme, who has campaigned for televised debates at previous elections, said broadcasters were "more than willing to cooperate with the arrangements". Opinion polls suggested that the idea had the backing of the public who like comparing the personalities and policies of the contenders in their own homes, he said. Lord Holme argued that as part of their public service obligations, broadcasters "should make the decision to go ahead" as soon as the election is called. An independent third party body such as the Hansard Society or Electoral Commission could work out the ground rules so they were fair to participants and informative to the public, he said. "It would be up to each party leader to accept or refuse," said Lord Holme. "If the prime minister's reported position is true and he does want to take part, he would then be obliged to say why publicly. "The broadcasters would then have the option of cancelling the event for obvious and well understood reasons, or going ahead with an empty chair. "Either way would be preferable to the present hidden veto." The Hansard Society has long campaigned for televised debates and has published reports on the issue in 1997 and 2001. Tony Blair has already ruled out taking part in a televised debate during the forthcoming election campaign. Last month he said: "We answer this every election campaign and, for the reasons I have given before, the answer is no," he said at his monthly news conference."


The government of Nigeria is hoping to triple cocoa production over the next three years with the launch of an ambitious development programme. Agriculture Minister Adamu Bello said the scheme aimed to boost production from an expected 180,000 tonnes this year to 600,000 tonnes by 2008. The government will pump 154m naira ( 1.1m; 591,000) into subsidies for farming chemicals and seedlings. Nigeria is currently the world's fourth largest cocoa producer. Cocoa was the main export product in Nigeria during the 1960s. But with the coming of oil, the government began to pay less attention to the cocoa sector and production began to fall from a peak of about 400,000 tonnes a year in 1970. At the launch of the programme in the south western city of Ibadan, Mr Bello explained that an additional aim of the project is to encourage the processing of cocoa in the country and lift local consumption. He also announced that 91m naira of the funding available had been earmarked for establishing cocoa plant nurseries. The country could be looking to emulate rival Ghana, which produced a bumper crop last year. However, some farmers are sceptical about the proposals. "People who are not farming will hijack the subsidy," said Joshua Osagie, a cocoa farmer from Edo state told Reuters. "The farmers in the village never see any assistance," he added. At the same time as Nigeria announced its new initiative, Ghana the world's second largest cocoa exporter announced revenues from the industry had broken new records. The country saw more than 1.2bn worth of the beans exported during 2003 04. Analysts said high tech production techniques and crop spraying introduced by the government led to the huge crop, pushing production closer to levels seen in the 1960s when the country was the world's leading cocoa grower.


Euro MP Robert Kilroy Silk has had a bucket of farm slurry thrown over him by a protester in Manchester. The UK Independence Party member was arriving for a BBC radio show when the attacker emerged from behind a bush. Fellow guest Ruth Kelly MP was also hit by the slurry. Mr Kilroy Silk said the man, who later disappeared, claimed he was "doing it in the name of Islam". In January, Mr Kilroy Silk quit his BBC One show for remarks he made about Arabs, who he called "suicide bombers". Mr Kilroy Silk had already been taken off air by BBC bosses for the comments, in which he also described Arabs as "limb amputators, women repressors". The remarks prompted outrage among Muslim groups. The slurry attack took place on Friday as Mr Kilroy Silk and Ms Kelly, a Cabinet Office minister and Bolton West MP, arrived at Manchester High School for Girls for the recording of BBC Radio 4's Any Questions. The police were called but the attacker had disappeared by the time officers arrived. They are treating the incident as assault. The programme's host, Jonathan Dimbleby, later told the audience the MEP had been covered from "head to toe". Mr Kilroy Silk was still able appear to appear on the show after being loaned a change of clothes. He told reporters he was "very angry" and planned to press charges if his attacker was caught. He said the man shouted: "You've offended my religion, I'm doing this in the name of Islam." "As I started to turn round a guy tipped a bucket of farmyard muck over me and then threw the rest of it over me and the car," Mr Kilroy Silk said. "I was totally covered, it was all through my clothes, and it stank to high heaven. It went all inside the car and splattered Ruth Kelly." A BBC spokesman said: "He took his seat as Jonathan Dimbleby was introducing the show. Fortunately someone at the school had a change of clothes to let him have." Greater Manchester Police said people near Mr Kilroy Silk had also been hit by the waste. Officers took statements at the scene, but no arrests have been made. Police say the suspect ran off after towards Wilmslow Road after committing the offence but is believed to have been driving a red Vauxhall Corsa earlier. The suspect is described as white, aged 30 to 40, with a ginger beard. Police want to hear from anyone who has any information. Mr Kilroy Silk, an MEP for the East Midlands, resigned the UK Independence Party whip in the European Parliament in October, after criticising UKIP and stating his ambition to be leader. However, he remains a member of the party. He said on Friday he hoped to be elected party leader before Christmas. "I think that is sufficient time for us to put in process what is necessary... in time for us to fight and have a significant impact upon the General Election." But a UKIP spokesman said that would be impossible under the party's constitution, which requires 70 days before any leadership ballot can take place.


Gambling is hugely popular, especially with tech savvy criminals. Many extortionists are targeting net based betting firms and threatening to cripple their websites with deluges of data unless a ransom is paid. But now deep defences are being put in place by some of the UK's biggest net firms to stop these attacks. Increasing numbers of attacks and the huge amounts of data being used to try to bump a site off the web are prompting firms to adopt the measures. "Net firms are realising that it's not just about anti virus and firewalls," said Paul King, chief security architect at Cisco. "There are more things that can be done in the network to protect data centres." Mr King said the only way to properly combat these so called Distributed Denial of Service attacks was with intelligent net based systems. Many of the gambling sites suffering DDoS attacks are in offshore data and hosting centres, so any large scale data flood could knock out access to many more sites than just the one the criminals were targeting, said Mr King. This overspill effect was only likely to grow as attacks grow in size and scale. Malcolm Seagrave, security expert at Energis, said the most common types of attacks hit sites with 10 megabytes of data over short periods of time. Bigger attacks sending down 200 megabytes of traffic or more were rarely seen, he said. "It does feel like they are turning the dial because you see this traffic gradually growing," he said. So far there have been no attacks involving gigabytes of data, said Mr Seagrave. However, he added that it was only a matter of time before such large attacks were mounted. Maria Capella, spokeswoman for net provider Pipex, said that when DDoS attacks were at their height, customers were getting hit every four to five days. The defences being put in place constantly monitor the streams of data flowing across networks and pluck out the traffic destined for target sites. "It's about understanding what's genuine traffic and keeping attack traffic from going to the site," she said. "We study the profile of their traffic and as soon as we see an anomaly in the profile that's when we start to get the backbone engineering boys to see if we are going to sustain an attack," said Ms Capella. This traffic can be hard to spot because DDoS attacks typically use thousands of computers in many different countries, each participating machine only sends a small part of the entire data flood. Typically these computers have been infected by a virus or worm which reports its success and the net address of compromised machines back to the malicious hacker or hi tech criminal that set off the virus. Hijacked computers are known as zombies or 'bots and collections of them are called 'bot nets. Many spammers rent out 'bot nets to help them anonymously send junk mail. Most of the zombies are based outside the country that hosts the target site so getting the attacking PCs shut off can be difficult. Often Pipex and other net suppliers do get advance notice that an attack is about to happen. "The serious players tend to precede an attack with some kind of ransom e mail," said Ms Capella. "We ask, as part of the service we provide, that customers notify us of anything they have in advance that would give us forewarning." Once an attack is spotted dedicated net hardware takes over to remove the attack traffic and ensure that sites stay up. Energis took a similar approach, said Mr Seagrave. "We have technology out there that allows us to detect attacks in minutes rather than let network engineers spend hours pulling the information together," said Mr Seagrave. Also net firms were starting to work more closely together on the problem of DDoS attacks and pool information about where they are coming from. Information gathered on attacks and where they originated has led to some arrests. He said Energis also did its own intelligence work to get in insight into which sites criminal gangs plan to target. "We have people in places where they shouldn't be, monitoring tech sites," he said. Sometimes though, he said, spotting the next victim was easy. "You can see them going alphabetically through the list with the gambling sites, trying one after another," said Mr Seagrave.


Moves to lift the European Union's ban on arms exports to China have been condemned by human rights groups and the Conservatives. The 15 year embargo was imposed in the aftermath of China's crackdown on protesters in Tiananmen Square in 1989. UK Foreign Secretary Jack Straw, who will hold talks in Beijing on Thursday, said an EU arms code was more effective than the current ban. But Human Rights Watch says the EU is putting commerce above abuse concerns. In December, the EU pledged to work towards lifting the ban but said it was not ready to do so yet. Germany and France have repeatedly called for the embargo to be lifted. Britain has been more cautious but Mr Straw last week said he also wanted it to end, despite US objections. He expects it to be lifted over the next six months, a prediction which has alarmed critics. Brad Adams, from Human Rights Watch, said: "This is a huge political signal from Europe that they are willing to forget about Tiananmen Square. "There are still thousands of people who are unaccounted for." Mr Straw said it was wrong to put China under the same embargo as countries such as Zimbabwe and Burma. The scope of the embargo was very narrow and did not have any force of law behind it, he told BBC Radio 4's World At One. In the UK, more export licences were refused under the existing European Union arms code than under the embargo, he said. And only two of the licences denied under the embargo would have been granted under the code. "The code of conduct is much more effective, it's a more powerful tool of and we intend to strengthen it as a pre condition of lifting the embargo with China," he said. Mr Straw denied the decision would suggest to China that Tiananmen Square had been forgotten. The level of human rights was a key criteria under the EU arms exports code, he said. Human rights groups say the code of conduct is not legally binding but Mr Straw said it would be given legal force by the laws of many EU countries. Conservative shadow foreign secretary Michael Ancram said the move would be "profoundly wrong". The decision could undermine Nato as it severely damaged relations with the US, which is opposed to ending the ban. Mr Ancram argued: "What the British Government is doing is giving in to French and German pressure, especially the French, who see vast contracts available to them if the embargo is lifted... "It gives the wrong signals to China, who are simply not prepared to accept that what happened at Tiananmen Square was wrong." Mr Straw's China trip is part of regular high level meetings with Beijing ministers. He will meet Chinese counterpart Minister Li Zhaoxing to discuss developing relations between their two countries, Hong Kong and China's part in the talks on North Korea.


The US dollar has hit a new record low against the euro and analysts predict that more declines are likely in 2005. Disappointing economic reports dented the currency, which had been rallying after European policy makers said they were worried about the euro's strength. Earlier on Thursday, the Japanese yen touched its lowest versus the euro on concerns about economic growth in Asia. Currency markets have been volatile over the past week because of technical and automated trading and light demand. This has amplified reactions, analysts said, adding that they expect markets to become less jumpy in January. "People want to go into the weekend and the New Year positioned for a weaker buck," said Tim Mazanec, director of foreign exchange at Investors Bank and Trust. The dollar slid to a record 1.3666 versus the euro on Thursday, before bouncing back to 1.3636. Against the yen the dollar was trading down at 103.05. The yen, meanwhile, dropped to 141.60 per euro in afternoon trading. It later strengthened to 140.55. Investors are concerned about the size of the US trade and budget deficits and are betting that George W Bush's administration will allow the dollar to weaken despite saying they favour a strong currency. Also playing on investors' minds are mixed reports about the state of the US economy. On Thursday, disappointing business figures from Chicago brought a sudden end to a rally in the value of the dollar. The National Association of Purchasing Management Chicago said its index dropped to 61.2, more than analysts had expected. German Chancellor Gerhard Schroeder and Italian Prime Minister Silvio Berlusconi voiced concerns about the strength of the euro. Mr Berlusconi said the euro's strength was "absolutely worrying" for Italian exports. Mr Schroeder said in a newspaper article that stability in foreign exchange markets required a correction of global economic imbalances.


Arsenal vice chairman David Dein has said the club may consider seeking a full listing for its shares on the London Stock Exchange. Speaking at the Soccerex football business forum in Dubai, he said a full listing was "one of the options" for funding after the club moves to its new stadium. The club which is currently listed on the smaller Ofex share exchange is due to move into its new 60,000 seater Emirates Stadium at Ashburton Grove for the start of the 2006/07 season. Mr Dein also warned the current level of TV coverage of the Premiership may be reaching saturation level, with signs that match attendances have been dropping off in the first few months of this season. When Arsenal moves to its new stadium it will see its proportion of turnover from media earnings drop from 52% this season to 34% in two years' time. The club is hoping to increase matchday earnings from 29% to 40% of turnover, and has not ruled out other money earning means, including a full share listing. "When the new stadium opens we will go through a thorough financial review," Mr Dein said. "Listing would be one option, but we are flexible and no decisions have been made on that issue yet. "We want to be in the best financial health maybe clubs can do it (listing), Manchester United have been a success." Mr Dein said that, although television money and coverage had driven the English game forward in the past 10 years, he feared there might now be too many games being shown. Since the formation of the Premier League in season 1992/93, Premiership clubs have seen their income from television soar. "Television has been the driving force over the past 10 years... but we must constantly improve if we want to remain as the world's leading league competition. "We must monitor the quality of the product and ensure attendances do not decline, and we must balance that with the quantity of exposure on TV too. "I think we have practically reached saturation point... sometimes I think less is more." The club is funding its move to Ashburton Grove through a number of sources, including debt from banks, from money it already has and will receive in coming years from sponsors, and from the sale of surplus property, including its Highbury Stadium. It is also looking to create new revenue streams from overseas markets, including Asia. "We have two executives travelling round Japan and China at the moment building relationships with organisations and clubs, and we know our supporters clubs are growing there too, as they are around the world. "We have got a very good product, so it is very important we go and look at these markets, and make sure we are on the case."


The top civil servant at the centre of the David Blunkett visa affair has been knighted in the New Year Honours. Sir John Gieve was Home Office permanent secretary during the saga which ended with Mr Blunkett quitting. He and other civil servants were criticised for failing to recall how the visa for Mr Blunkett's ex lover's nanny came to be fast tracked. The outgoing head of the troubled Child Support Agency Doug Smith also earns an honour in the New Year's list. Mr Smith, 57, whose retirement was announced by Work and Pensions Secretary Alan Smith in November, is made a Commander of the Order of Bath. Both men were giving evidence to a Commons committee on the computer difficulties facing the agency, which left thousands of single parents without any maintenance payments, when the announcement was made. The knighting of Sir John, 54, will be received with astonishment by opposition politicians. The Liberal Democrats said it "beggared belief" he and fellow officials could not remember how Leoncia Casalme's application for indefinite leave to remain went from Mr Blunkett's office to the head of the Immigration and Nationality Department. Meanwhile, the Conservatives accused officials of a "collective failure" of memory. But Sir Alan Budd, who led an inquiry into the affair, said he had no reason to believe anyone involved had deliberately withheld information. Downing Street defended the decision to honour both men, with a spokesperson saying: "You have to look at their whole career." Sir John was made permanent secretary in April 2001 following a Civil Service career which dates back to 1974. He has also worked in the Treasury and the Department of Employment. A Department for Work and Pensions spokeswoman said of Mr Smith's honour: "The award reflects all that he has achieved in a Civil Service career, principally in the Inland Revenue, spanning over 40 years not just his role as chief executive of the Child Support Agency. "In his career he has personally led a number of successful major change programmes." Mr Smith is set to stay on at the CSA until March. Less controversial will be the knighthoods for Derek Wanless and Mike Tomlinson, who undertook major government reviews on health and education respectively. Former NatWest chief executive Mr Wanless, 57, has delivered not one but two major reports on the NHS. Ex chief inspector of schools Mr Tomlinson, 62, has recommended replacing A Levels and GCSEs with a new diploma system in a shake up of the exams system.


UK Athletics has ended its search for a new performance director by appointing psychologist Dave Collins. Collins, who worked with the British teams at the 2000 and 2004 Olympics, takes over from Max Jones. Six candidates were interviewed for the job, including Denise Lewis' coach Charles van Commenee and former British triple jumper Keith Connor. "We've searched long and hard to ensure we have found the right person," said UKA chief executive David Moorcroft. "We have thoroughly tested the candidates. I believe David will make a great leader and I have great faith in what he will achieve." Collins said: "It's a great challenge. Over the next few months I will spend time listening to those who already make a significant contribution to athletics and other elite sports in the UK." Collins, who has worked with javelin thrower Steve Backley in the past, started his career as a Royal Marine before becoming a PE teacher. He is currently professor of physical education and sport performance at Edinburgh University, where he helps competitors across many sports, including rugby, athletics, judo and football. He has specialised in helping competitors fulfil their potential through psychology and has worked with the Great Britain women's curling team, who won gold at the 2002 Winter Olympics. Mark Lewis Francis sought Collins' advice in Athens when he was looking for inspiration before he ran the final leg of Britain's surprise triumph in the 4x100m relay. Collins has played rugby at regional level, was captain of the Great Britain American Football team, and competed at national level in judo and karate. He arrives with British athletics at a crossroads. Despite Kelly Holmes' golden double and the success of the sprint relay squad, the GB team failed to live up to expectations in Athens. Many older competitors have retired or are coming to the end of their careers, and Britain failed to win a single medal at the world junior championships in Italy this year. Collins will not have day to day coaching contact with the athletes, but will be expected to make changes to the system and coaching set up in order to secure medals at the Beijing Olympics in 2008. The appointment of a new performance director was one of the main recommendations in Sir Andrew Foster's review of the sport, which was published in May. It was commissioned by UK Sport and Sport England, which wanted UK Athletics to justify funding of more than 40m from the Government following the failure to hang on to the 2005 World Championships, which are now being held in Helsinki. Van Commenee dropped out of the selection process to take on the same role with the Dutch Olympic Committee, while Connor's application was rejected after an arduous interview process. Foster, however, declared himself satisfied with how the appointment was made. "The appointment of David Collins, with his strong mix of leadership skills and managerial experience, is testament to the professional and detailed recruitment process," he said.


Labour and the Conservatives are still telephoning the millions of people who have signed up to make sure they do not get marketing "cold calls". The parties say they can stick to the rules by ensuring that their calls are not marketing for instance by asking about people's voting intentions. The Lib Dems are asking the watchdog overseeing the rules to stop the calls. The information commissioner's office says surveys are allowed but people had to be told if personal data was kept. Telephone call centres are expected to be used as never before by all the three major parties in the run up to the general election. But seven million telephone numbers are on the Telephone Preference Service (TPS) lists, which ban unsolicited sales and marketing calls. Both schemes are run by the Direct Marketing Association and backed by EU directives on privacy and electronic communications. The rules on marketing calls apply as much to politicians as to private sector companies. But that does not mean Labour and the Tories are not calling people signed up to the TPS. A Labour Party spokesman told the BBC News website the party avoided those on TPS lists when telephoning people about membership or fundraising. But that did not happen for "voter identification" calls. "When we ask which party they will vote for, that is not marketing and we have very clear legal advice that it is not," he said. "So it is not covered by the Telephone Preference Service." He said the party always asked people if they would be happy to be contacted again and if they said no, they were not rung again. A Conservative spokeswoman said the party stuck to the rules when it rang TPS subscribers. She said: "We do apply TPS but in line with the law. We would not do things that are not allowed in the law." Assistant information commissioner Phil Jones said it was classed as marketing if political parties telephoned people to encourage them to vote for them. But "classic market research", such as a poll of voter intentions, did not constitute direct marketing, he said. "If a party is calling someone who is registered on TPS and records their voting intention with a view to using this information in the future, this should be clear to the voter concerned," said Mr Jones. "If a party rings a person who is registered on TPS to ask about their voting intention and goes on to encourage that voter to support them, the party may well be in breach of the regulations. "In summary, whether a party calling TPS registered voters to check their voting intentions will breach regulations will depend on the script used and whether the script is followed." Mr Jones said the watchdog received "very few complaints" on the issue. Earlier, Lib Dem chairman Matthew Taylor wrote to the watchdog saying: "The advice we have received on several previous occasions is that such phone calls are illegal." He says evidence from local Lib Dem parties around the country suggests there are "significant" numbers of such calls. "I hope you can therefore take swift and efficient action to ensure that this ceases," he tells the commissioner. Mr Taylor argues there should be new guidelines so all parties can act in the same way if the watchdog believes the rules allow parties to ring TPS numbers about voting intentions and later urge those people to vote for them.


The shape of the UK's economy In graphics But he denied that he was ruling out British membership of the euro despite saying there would be no assessment of the five economic tests this year. Mr Brown said that it was vital the UK continued to invest in infrastructure, science, and education in the future. Otherwise it would be overtaken by the likes of China, he told MPs. The chancellor said that the EU's planned changes in the growth and stability pact designed to ensure that countries in the euro zone do not borrow too much would force Britain to run a budget surplus of 1% over the economic cycle. Under Mr Brown's rules, the UK current budget must be in balance over the economic cycle, but public investment is not counted as part of that deficit. He told the House of Commons Treasury Select Committee that the EU rules "make it difficult for a low debt country to run the investment programmes that are necessary to improve its infrastructure". But he argued that the EU was moving in the direction of the UK principles, and would eventually recognise the need to consider budget deficits over a longer period than one year, to include investment, and to take more account of the total size of government debt as well as the balance each year. Under Mr Brown's "sustainable investment" rule, government debt should be under 40% in contrast to the 60% allowed under the growth and stability pact. Mr Brown vigorously denied Conservative claims that he had in effect fiddled the figures to ensure that he met his own fiscal rules. In March the Office of National Statistics (ONS) reclassified 3.4bn of spending on road repairs as public investment shortly before the chancellor announced in the Budget that he would meet his own fiscal budget rule by only 6bn. Conservative Michael Fallon asked Mr Brown whether the Treasury had leaned on ONS to make this change, and said that the ONS had received a written paper from the Treasury on this matter. But the chancellor said Mr Fallon was "impugning the integrity" of the Office of National Statistics and said the decision had been made completely independently. Mr Brown also denied that he was increasing taxes to fund his spending gap. He told the Treasury Select Committee that a growing economy meant more people in work and more profits for companies which would boost Treasury coffers. Earlier, ex Conservative chancellor Ken Clarke welcomed a relaxation of the rules governing the euro zone. Speaking on Radio 4's Today programme, Mr Clarke said political give and take would replace more "rigid" rules. But fellow Tory David Heathcoat Amory said the folly of the system was in trying to run Europe's varied economies on one set of rules. "The essential point here is that the stability and growth pact has turned out to be a fake," he said. "The warning is about the European constitution, which we are going to have a vote on in a year or two, and that centralises and entrenches these rules in a constitution. It gives more powers to Brussels to co ordinate things like employment and economic policy." But, speaking to the Treasury Select Committee, Gordon Brown said that the new stability pact rules were not part of a binding Treaty and could be changed again the future potentially opening the way for future euro membership. "The conditions for euro entry are unchanged by this new decision about the stability and growth pact," Mr. Brown said.


Budget airline Ryanair has placed an order for 70 Boeing 737 800 planes, in a deal valued at 4bn ( 2.1bn) which should lead to 2,500 new Ryanair jobs. It also has an option for a further 70 aircraft, a move which brings the Ryanair/Boeing order book up to 225 firm orders and options on 193 more. Ryanair said the new planes would help it to cut operating costs further. The carrier reported a drop in quarterly profit earlier this year after it was hit by higher fuel costs. However, when it reported the results, the airline was upbeat about prospects for 2005, despite tough competition in the budget airline market. Ryanair chairman David Bonderman said that the 737 800 had "significantly reduced our unit operating costs and allowed us to reduce air fares each year for the last five years". "With this new order and new pricing in place, Ryanair expects that unit operating costs (excluding fuel) will continue to fall each year for the next five years," he added. At the end of this year, Ryanair will have taken delivery of about 100 new planes, while the 70 new orders are due for delivery between 2008 and 2012. The airline said that when all these planes have been delivered, it will be able to carry more than 70 million passengers a year, making it Europe's largest airline. About 2,500 new jobs should be created in the next seven years, it added. The order can be seen as good news for Boeing, which in recent years has been overtaken by European plane maker Airbus as the world's biggest selling plane maker.


A Norwegian student who ran a website which linked to downloadable MP3 files has been ordered to pay compensation by the country's Supreme Court. Frank Allan Bruvik was ordered to pay 100,000 kroner ( 8,000) to the music industry in Norway. He was a student when he set up his napster.no site, which allowed users to submit and receive links to MP3 files. Bruvik had earlier been cleared on appeal after a lower court had found for the music industry. Music industry bosses in Norway said the ruling would help build confidence in the internet as a distribution medium. Frank Allan Bruvik set up the napster.no website as part of a school project in 2001 while studying computer engineering in the Norwegian town of Lillehammer. The website was not associated with the napster.com site in the USA, which had been operating since 1999 and was already facing legal action. Bruvik's site was online between August and November 2001, and while it did not host any music, at its peak it was providing links to more than 170 free files on other servers. As well as providing links, the site allowed those visiting it to submit links that could later be accessed by other visitors. A legal complaint for copyright violation was filed by groups including Norway's performing rights society, Tono, and the Norwegian branches of Sony Music and Universal Music, who saw it as an important test of principle. A Norwegian court ruled in 2003 that Bruvik would have to pay 100,000 kroner to the music industry, but the country's Court of Appeal cleared him, saying that the copyright violation occurred when others posted the music. However, the Supreme Court stated that the music was clearly published in violation of copyright law It added that the case was decided based on the responsibility for abetting an illegal act, and that Bruvik's actions were premeditated. Norway's music industry said it was satisfied with the ruling, because showed that music piracy would not be accepted. Meanwhile, in the USA a further 717 lawsuits against people alleged to have traded copyrighted songs were filed this week by the Recording Industry Association of America. The suits, brought on behalf of the major record companies, cite the individuals for illegally distributing music via unauthorized peer to peer services such as KaZaa and eDonkey. As with preceding cases, the fresh action was made against so called "John Doe" defendants, who are identified only by the codes given to their computers' internet connections.


Manchester United reduced Chelsea's Premiership lead to nine points after a scrappy victory over Manchester City. Wayne Rooney met Gary Neville's cross to the near post with a low shot, which went in via a deflection off Richard Dunne, to put United ahead. Seven minutes later, the unfortunate Dunne hooked a volley over David James' head and into his own net. Steve McManaman wasted City's best chance when he shot wide from three yards in the first half. In the opening 45 minutes United had looked unlikely to earn the win they needed to maintain any chance of catching Chelsea in the title race. Their approach play was more laboured than patient and they managed to fashion just one chance a Paul Scholes header over the bar. And City seemed to be content to sit back and try and hit their rivals on the break as the game settled into a tepid pattern. Only Shaun Wright Phillips appeared capable of interrupting the monotony, looking lively down the right and causing Gabriel Heinze problems. Wes Brown also found Wright Phillips to be a difficult opponent when the tricky winger embarrassed him near the touchline. Wright Phillips' sublime skill and pace took him past Brown and he delivered a pin point centre to the feet of McManaman. But the former Liverpool player demonstrated why he has never scored against United by side footing the easy chance wide. John O'Shea was forced off after an earlier clash with Sylvain Distin and Cristiano Ronaldo came on to replace him. He immediately caused Ben Thatcher some discomfort and looked set to inject some much needed pace into the United attack. Rooney was being well marshalled by Dunne but that was all about to change. After the break, United poured forward and there was a renewed urgency about their play. And when Neville delivered a cross in a carbon copy of City's best first half chance, Rooney showed McManaman how to do it even if he needed the help of Dunne's leg. Worse was to come for Dunne, who had been having a fine match. On 75 minutes, he scored a horrible own goal when attempting to volley clear Rooney's cross and United seemed home and dry. However, City did fight back and Fowler missed another great chance from close range. And United keeper Roy Carroll saved well from Kiki Musampa. But United could have a had a third late on when substitute Ryan Giggs hit the post. Manchester City boss Kevin Keegan: "We had a great chance to take the lead and the first goal was always going to be crucial. "We started off with a good tempo but then we allowed them to dictate the pace a bit too much. "But we still had four good chances, two after we'd gone 2 0 down, the one McManaman missed was very similar to the one Wayne Rooney scored from." Manchester United boss Sir Alex Ferguson: "It wasn't our best performance of the last three months but I think we're deserved winners. "At times, especially in the first half, we didn't play with enough speed. But with (Cristiano) Ronaldo and (Ryan) Giggs on, the speed improved. "Derby games can be like that, they can be scrappy, dull, horrible and it was maybe like that." Man City: James, Mills (Bradley Wright Phillips 83), Dunne, Distin, Thatcher, Shaun Wright Phillips, Barton (Macken 68), Sibierski, McManaman, Musampa, Fowler. Subs Not Used: Weaver, Onuoha, Flood. Booked: Fowler, Sibierski. Man Utd: Carroll, Gary Neville, Ferdinand, Brown, Heinze, O'Shea (Ronaldo 33), Keane, Fortune, Fletcher (Giggs 64), Rooney, Scholes (Phil Neville 84). Subs Not Used: Howard, Bellion. Booked: Rooney, Scholes, Keane. Goals: Rooney 68, Dunne 75 og. Att: 47,111 Ref: S Bennett (Kent).


Former Labour prime minister Lord Callaghan has died on the eve of his 93rd birthday. He passed away at home in East Sussex, just 11 days after his wife Audrey died aged 91. Lord Callaghan, who leaves a son and two daughters, was the longest living former British PM in history. He entered Downing Street in 1976 after the resignation of Harold Wilson. Prime Minister Tony Blair called him a "giant" of the Labour movement. He held each of the major offices of chancellor, home secretary, foreign secretary and prime minister during his career and became Lord Callaghan of Cardiff in 1987. Chancellor Gordon Brown said the former PM would be "mourned throughout the world". "It was a commitment to public service that brought Jim Callaghan into Parliament in 1945, and while Jim rose to the top he never forgot his roots." Former cabinet colleague Lord Hattersley said his first reaction on hearing the news was "immense sadness". "It was not a major surprise I knew what a blow the death of his wife Audrey was a few days ago," he said. "He was a decent kindly man who helped me and my generation of politicians immensely. "The Labour party and the country will be poorer without him." Conservative peer Lord Heseltine said that despite their political differences, he and Lord Callaghan became friends. "You don't get to the premiership unless you have a streak of determination," he said. "But I saw the other side of Jim Callaghan, he became a personal friend in a way, and my family and I were very fond of him." Tory leader Michael Howard said he would be remembered with "affection and respect". Liberal Democrat leader Charles Kennedy said: "When I was first elected in 1983 as the youngest MP, he was the "Father of the House" and as such took a very keen interest in my early days in Parliament. "He was always full of warmth and wisdom." Born in 1912 and educated at Portsmouth Northern Secondary School, Lord Callaghan became a clerk at the Inland Revenue. He enlisted in the Royal Navy in 1942 and rose to the rank of lieutenant. Elected for a Cardiff constituency at the 1945 general election, he represented Cardiff seats for more than 40 years. After serving as a junior minister in the Attlee government, he became chancellor of the exchequer when Labour returned to power in 1964. With sterling under pressure, he resisted devaluation for three years, before being forced into it in 1967. His political career was not without controversy. When he refused to support prime minister Harold Wilson and Dame Barbara Castle over the latter's trade union manifesto, In Place of Strife, in 1968, he said: "I am not going to resign. They will have to throw me out". When home secretary, he ordered British troops to march into the streets of Belfast to protect Catholic civilians amid rising violence a decision that has dominated British politics into the 21st century. As foreign secretary in the early 1970s, Lord Callaghan kept an open mind about the UK's entry into the Common Market, seeing the advantages of the UK's entry. He once travelled to Idi Amin's Uganda in 1975 to plead for the life of a British lecturer, Dennis Hills, who was under a death sentence for treason. His political life was often tempered by battles against the hard left of the party. In the autumn of 1978, before the "Winter of Discontent" when trade unions carried out strikes that brought the country to a standstill, Lord Callaghan refused to hold an early election which may have delivered a Labour victory. As garbage lay uncollected in the streets and hospital staff, council workers and even gravediggers stayed off work, Lord Callaghan failed to predict the mood of the country. When Britain went to the polls in 1979, Tory leader Margaret Thatcher was swept into power in a landslide victory, and Lord Callaghan resigned as Labour leader.


Michael Howard has dismissed fears from some Conservatives that his plans for 4bn tax cuts are too modest. He defended the package, saying it was a plan for the Tories' first Budget and he hoped to be able to go further. The Tories on Monday highlighted 35bn in "wasteful" spending they would stop to allow tax cuts, reduced borrowing and more spending on key services. Labour and the Liberal Democrats say the party's sums do not add up and claim it would cut frontline services. The Tory tax plan follows complaints from some of the party's MPs that Mr Howard and shadow chancellor Oliver Letwin have taken too long to unveil the proposals. Now they have promised a figure but have yet to reveal which taxes would be targeted. Tory backbencher Edward Leigh said the proposals were a step in the right direction but he told the Financial Times: "I would come up sooner with much greater tax cuts." Interviewed on BBC Radio 2's Jeremy Vine show, Mr Howard said: "It is perfectly true that I am being attacked on one side by people who think we ought to be promising much, much bigger tax cuts and spending cuts. "On the other side, there are people who say we won't be able to achieve these tax cuts. "I think we have got it about right." Mr Howard said voters faced a clear choice at the next election between more waste and more tax under Labour and Tory value for money and lower taxes. He added: "I would like to be able to do more, and over time I am sure we will be able to do more, but at the start, we have got to recognise there is a limit to what we can do in one go, in our first Budget. "I have got to be responsible about this." The latest Tory plans came as campaigning for the election widely expected in May gathered pace. The Liberal Democrats launched their pre election platform, with leader Charles Kennedy saying his party was the "authentic opposition", particularly on the Iraq war, council tax and university tuition fees. Lib Dem Treasury spokesman Vince Cable also branded the Tory plans as "fantasy economics". Labour hit back at the Tory proposals even before their publication with election coordinator Alan Milburn accusing Mr Howard of producing a "fraudulent prospectus". The party on Tuesday challenged the Tories to publish the full report from David James, the trouble shooter they asked to identify possible savings. But the Tories are in turn demanding that Tony Blair spell out which taxes he would raise if he wins the election.


Italy skipper Marco Bortolami believes Saturday's Six Nations contest against Scotland will be a scrappy encounter. With both sides looking for their first win of the championship, the third round game at Murrayfield has been billed as a wooden spoon decider. And Bortolami feels the Edinburgh contest could end up being a bruising battle of the packs. "It will not be a pretty game because both teams are desperate to gain their first win," said the lock forward. Italy have only recorded three wins since they joined the Six Nations in 2000, but two of those have come against Scotland. This year, Italy opened up with a stubborn display against Ireland but ended up losing 28 17. However, they were thoroughly outplayed by an impressive Welsh side in Rome last time out. Now the Italians travel to Edinburgh hoping to claim their first away win in the Six Nations. "Scotland played extremely well against France in Paris but not so well when Ireland came to Edinburgh," said Bortolami. "We are still very disappointed with our last game against Wales in Rome and we are thoroughly determined to right the wrongs. "As a nation, our quest is to be respected as a team worthy of a place in this tournament and we can only do this by winning games."


Online role playing games are time consuming, but enthralling flights from reality. But are some people taking their fantasy lives too seriously? When video game World of Warcraft hit the shops in Europe last week fans wrote in to the BBC website to express their delight and to offer a warning. "An addiction to a game like this is far more costly in time than any substance could impair keep track of time," wrote Travis Anderson, in Texas. Some of the comments were humorous: "This game is so good I'm not going to get it, there's no way I could limit the hours I'd spend playing it," wrote Charles MacIntyre, from England. But some struck a more worrying tone about the Massively Multiplayer Online Role Playing Game (MMORPG): "'You need to get out more' could be the motto of any MMORPG. Shame they are getting more popular, as you know this problem is just going to mushroom," wrote Stuart Stanton Davies, in Huddersfield. Scare mongering articles about "addictive video games" have existed since the days the first game of Pong stopped everyone from working at the Atari offices. Gaming is like any other pastime it can quickly become an unhealthy obsession, whether it is spending too much time in the gym, in front of the television, or reading poetry. Unfortunately, gaming and addiction is a far too easy association to make. However, stories about gamers spending 10 to 15 hours a day in front of some video games are becoming more frequent. And the impact that is having on their families is quite distressing for some. Massively multiplayer online role playing games MMORPGs allow thousands of gamers to share a common experience of sharing fantasy or science fiction worlds. The scope of these games like Warcraft, EverQuest, Ultima among others is epic, and exploration and adventure is almost infinite. Part of the "problem" is grinding by which gamers have to perform long winded, mindless tasks, to bring up their levels and gain access to more adventure. Such open endedness brings with it a desire to keep playing; not for no reason is EverQuest (EQ) nicknamed EverCrack. E Hayot, writing in the culture blogzine Print Culture, said recently: "I used to play the online role playing game EverQuest a lot. "By 'a lot', I mean probably 15 to 20 hours a week on average, and on weeks where I didn't have to work, as many as 30 or 40 hours." He says that in the world of online gaming such behaviour "wasn't that unusual; lots of people I knew in the game played EQ that much". "You lie; you don't go into work because you "had stuff to do at home"; you cancel or refuse invitations to dinner, you spend much less time watching TV (a good thing, presumably)," he wrote, explaining how EverQuest took over his time. He quit the game, he says, because he realised life was more fun than EverQuest. Let us be clear such obsession is rare. But the huge growth in online gaming means a growth in the numbers of people who take their passion for a hobby too far. Almost 400,000 people bought a copy of World of Warcraft in the first two days on sale earlier this month. Only a fraction will descend into obsessives. The thoughts of families and friends of gamers who have been affected by EverQuest can be found on one blog EverQuest Daily Grind. Jane, who runs the website, compiles a chronicle of heart rending stories. "I am actually convinced at this point that there are more than 'some' people who spend more times in MMOPRGs than in reality," she said. One unnamed correspondent all are anonymous wrote: "On the rare nights when my husband does come to bed at the same time as I do, I find that I am so used to sleeping by myself that it is difficult to get to sleep with another body laying next to me. "I can't talk to him while he is playing. There is absolutely no point as he doesn't hear me or is so distracted that I get a 'ummm... ya' a few minutes after I ask him a question." "Gaming widows" has become a comedic term for women who have been shut out by male gamers. But for some it is not in the least funny. Another correspondent wrote: "I believe that he is addicted to the online gaming, and that is the cause of his depression and restlessness." And some of them are even sadder: "Today our son was five days old. "The sad truth is my husband spent 11 hours today playing his Warcraft game. He did not interact with our sweet tiny baby because there were important quests waiting online." Video game fans often complain that their hobby is misunderstood or marginalised. But as gaming becomes ever more mainstream, and games ever more immersive, there will be no hiding place for social problems. I wish 30 40 hours a week was unusual but I think it probably isn't. An 11 hour stretch isn't that surprising I've known people to play 15 hours at a stretch. I know of people who are spending their week's holiday from work playing Warcraft. I know of people who would play Ever Crack in shifts...waking at 3am to take over from their friends and resume waiting for an item they 'needed' to appear. I understand that the key sign of an addiction is if you alter your life around it rather than fit it into your life. By all standards many of us are addicts. So is the solution to force ourselves to stop playing..or do we just need to make real life a bit more interesting? Sadly with all the talk of people becoming obsessed with gaming, I find myself longing to have the time to join them. I have been in a long term relationship for over 4 years since that began, games have become more and more complex. And more and more so I find I have less and less time to play them, with and marriage and work being the main drag on my time. I think the line between playing a game a lot and a gaming addiction is really quite distinct. I play games a lot, definately over 20 hours a week, but I don't go missing work or other commitments in order to play games. I have, about a year ago, deleted every game on my computer. RPGs are the worst the real world fades and all your worries sorround a new magic staff or mighty sword. Unlike books, or perhaps even TV, you gain absolutely nothing. When you stop playing you're at the same point as when you started; all the achievements of your 10 hour session are irretrievably locked in the game and, since you've gained nothing in the real world, you may as well pile on more achievement in the fake one. Despite having little monetary value, the "rewards" and encouragement offered by these MMORPGs is enough to hook games for hours daily. If only business could learn to leverage that very simply human need for easily measurable progress and recognition. Perhaps the unhealthily obsessed simply need more recognition for their achievements in reality? My advice to gaming widows is "if you can't beat 'em, join 'em". That is, try playing it yourself. If he wants to play as well, well at least you'll be together somewhere... I was an addict and it cost me my relationship. I still play now, but without the guilt , hehe, How long have i played in one sitting? From morning till the early hours of the next day, the birds were singing out side and i had to hobble to the bath room cos my bladder was so full i was in pain, i would hardly eat, perhaps some toast, smoke endlessly and drink. Now, thankfully the fascination has worn off and I have a girlfriend but still no job. For the most part online gaming give me an adiction to illusory achievement, and as there is no end in sight you keep going for the mirage of the ultimate. Obsessive behaviour is, of course, always cause for concern, but it always bothers me when articles about gaming talk in terms of "reality". Obviously, somebody who spends thirty hours a week playing EverQuest has a problem. This problem, however, has nothing to do with a dysfunctional sense of reality. An obsessive EQ player does not consider the game to be "real" any more than for example an obsessive automotive tinkerer considers their car to be human. If MMORPGs have a unique danger, in terms of encouraging obsessive behaviour, it is not that they create an absorbing virtual world, but rather that they can be easily accessed 24/7. The problem here does not lie with the nature of gaming, but with the nature of modern 24 hour culture. The problem with these so called MMORPGS is that you can never really complete them, there's always another quest to do. A few of my friends have only had about 10 hours sleep since it was released friday... Championship Manager consumed my life for years. One particular session started at about 2pm on a Sunday, paused for a brief sleep at 5am on the Monday and after visit to University for classes restarted at about midday for another 10 hour session. The people who tend to hark on about about the problems of "hardcore gaming" seem to be those who have rarely allowed themselves to become immersed in a game. I would expect their perspective to change if they were to do that. I used to be an EverQuest addict while I was in college. It came to the point where the gaming world felt more real than the real one. I failed alot of my courses and was able to barely graduate. I was lucky that I came to my senses when I did, others were less fortunate and dropped out of college. Now that I am holding a job, I avoid online RPGS like the plague. When I was made redundant I told my partner I had a new job for three months whilst every day I played EverQuest from 7:30am till 5:pm. When She came home I pretended I had just got in as well, hence justifying playing it all evening. I have since quit playing MMORPG and have a good job. When I got to the point where I was eating my dinner in front of the PC I realised things were getting silly so I'm trying not to spend so much time on there. It's not easy. I feel as if I've got a real addiction going on here. For me the problem is that I love to complete a goal. Once it is completed that is it, I am finished, time to move on. I become obsessed to complete the goal, so from that standpoint it is an addiction. In a game where you will never complete an "ultimate" goal, well it would be like falling into a black pit. It is easier to escape into a controlled fantasy world than face reality at times in other words the goal offered in the PC game are "easier" and more fun than the real world. Pretty scary implications if you think about it. I can't buy World of Warcraft as it would destroy my marrage, I just know it!! I played Star Wars Galaxies for about a year and can attest to the addictiveness of these games. They are all engineered in such a way that early on in the game you progress quickly, but this progress becomes exponentially slower, requiring more and more time to reach the next level. I'm sad to say that at the peak of my addiction I was spending entire weekends in front of my monitor, slowly building up my character, stopping only for food and toilet breaks. Thankfully I made a clean break, and actually managed to sell my Jedi account for 800 which is my only sanity check in an otherwise completely unproductive time vacuum. Seven years ago, I began playing Ultima Online. This game dominated 2 years of my life. They were 2 wonderful years and I still have vivid memories of the experiences and friends I had. Online gaming can be a world of escapism where you can be yourself without fear of the thoughts of others. Something that cannot always be achieved in the day to day running of a normal life. Whilst I would warn against people giving to much of there life to these games, I believe they are a better way to spend your time than say watching TV. Gaming is addictive and should be made a recognised addiction. When I was single I used to play upto eight hours a night after work every night for about a year, building up my stats, completing evermore quests and battling ogres. But somehow I found time to get out, even met someone and got married! Has my life changed? Hell no! I still cast spells and battle till the early hours of the morning. On with the fun! Online gaming should be enjoyed just as much as you would enjoy watching television, or going to the cinema or the pub with your mates. Many people use recreational drugs on an occasional basis and are able to lead succesfull lives with families, relationships and good careers. A minority allow drugs to take over and destroy their lives and become addicted. According to this article the same is true of MMORPGs. The message to the government is clear, either legalise drugs, or outlaw online gaming!! Sounds like there are some sad stories here and I can believe them all. I play alot of Warcraft myself, and know full well how addictive it is. I am resolute that it will not take over my life. It certainly gets in the way though. I think that some people simply do not know how to draw this line, or lack the willpower to stop themselves stepping over it. I think I'm obsessed with gaming in general, I spend far too much time playing games like Everquest 2 and Football Manager rather than going out and interacting with real people and when I do try to, I'm always thinking in the back if my mind that I'd rather be in front of the computer winning the league with Cambridge United. I am obsessed with online role playing games. It's not so much quests but it has the adrenaline of a real life situation goals to achieve etc. I spend about five hours per day online playing it and I rarely get more than four to five hours sleep before getting up for work the next morning... As many of the players spend their time in MMORPGs rather than in front of the TV I fail to see how it will affect players social lives negatively. Furthermore these types of games contain a huge social aspect, whereas other games and some other pursuits (such as being a couch potato) the players could be indulging in are solitary by nature. These games are like most things too much of anything is a bad thing, but as long as you can walk away from the computer to do other things too, they can be great fun. Living in Korea at the moment, they have lots PC Bangs (Internet Cafes). Nearly most of South Koreans are addicted to online games, and one Korean died because of the lack of food and water he had through playing online games. I play xbox live every day. I find my self lying and rescheduling everything around my gaming fix. The longest I played was a 24 hour straight session. I know I play for to long but it's an obsession that I can't control. Can you reccomend a counsellor this is not a wind up... but something I'm increasingly concerned with... Me and my mate play online for an hour or two a day, we're both aware of how much time can disappear by sitting in front of a TV, trying to 'frag' some individual. It's getting the balance between getting home and relasing the stress of a day by an hour or so gaming, and enjoying 'real' life... I bought the US version of World of Warcraft when it came out. The longest period I played was 23 hrs straight. I gave up the game after a month because it was so addictive, but have subsequently just bought the European version (couldn't help myself). In future, I'm going to regulate my time far more strictly. Great game! Having played MMORPG games for some years I agree that these type of games can be life sucking. But my concern is for the younger generation of gamers that play for hours on end in an adult enviroment. Most MMORPG games you need a credit card to play but I dont think parents know just what they are letting there children into. Unless there is undeniable medical proof that staring at a computer screens for hours at a time can damage a person 191;s health, you can expect this not to decline but to get worse. These people are pathetic. They need to get off their machines and notice that our world is being swiftly overcome by issues and troubles that make the trifling worries of and "online universe" absolutely meaningless. 24hours, when i was a kid at school and i was on half term, Ultima Online was the game, ahhhh them was the days ! LOL


Shares in UK drinks and food firm Allied Domecq have risen on speculation that it could be the target of a takeover by France's Pernod Ricard. Reports in the Wall Street Journal and the Financial Times suggested that the French spirits firm is considering a bid, but has yet to contact its target. Allied Domecq shares in London rose 4% by 1200 GMT, while Pernod shares in Paris slipped 1.2%. Pernod said it was seeking acquisitions but refused to comment on specifics. Pernod's last major purchase was a third of US giant Seagram in 2000, the move which propelled it into the global top three of drinks firms. The other two thirds of Seagram was bought by market leader Diageo. In terms of market value, Pernod at 7.5bn euros ( 9.7bn) is about 9% smaller than Allied Domecq, which has a capitalisation of 5.7bn ( 10.7bn; 8.2bn euros). Last year Pernod tried to buy Glenmorangie, one of Scotland's premier whisky firms, but lost out to luxury goods firm LVMH. Pernod is home to brands including Chivas Regal Scotch whisky, Havana Club rum and Jacob's Creek wine. Allied Domecq's big names include Malibu rum, Courvoisier brandy, Stolichnaya vodka and Ballantine's whisky as well as snack food chains such as Dunkin' Donuts and Baskin Robbins ice cream. The WSJ said that the two were ripe for consolidation, having each dealt with problematic parts of their portfolio. Pernod has reduced the debt it took on to fund the Seagram purchase to just 1.8bn euros, while Allied has improved the performance of its fast food chains.


England coach Sven Goran Eriksson has revealed Shaun Wright Phillips will start against the Netherlands. But Wright Phillips will not make his first start for England playing on the left, as had been widely expected. "Shaun Wright Phillips will probably start the game," said Eriksson. "But I'm not going to start Wright Phillips on the left." Eriksson also revealed that Wes Brown will start alongside Jamie Carragher in the injury hit centre of defence. When asked if Brown and Carragher would start Eriksson replied: "I could tell you yes. "It's a blow that four or five central defenders are away because of injuries. "On the other hand it's good for Carragher and Brown to show what they can do at this level. That's positive." The England coach said that he had been impressed by Wright Phillips' form for Manchester City. "He deserves his chance. He has been playing well all season and I look forward to seeing him." And he added that Andy Johnson and Stewart Downing the other two new players in the squad would also get a chance to impress. "Wright Phillips, Downing and Johnson will start or get the chance to play some part. "Johnson was not in my plans a year ago but he is doing a great season and scoring a lot of goals. "Downing is another one making a great season. He is young, talented and there are not too many left footed players in the squad."


The computer systems used to monitor the world's nuclear power installations are so outdated that they are hampering the work of inspectors. A spokesman for the International Atomic Energy Agency (IAEA) said its current technology could allow key information to be overlooked as it was more than 20 years old. Such systems are the only method of tracking nuclear material worldwide. The agency has appealed for more funds to update its hardware and software. "A major overhaul of the system is needed to allow inspectors immediate, secure online access to information," said project manager Livio Costantini. IAEA inspectors make around 3,000 visits a year to more than 900 nuclear facilities worldwide. They are there to verify official reports of activities in the plants, to carry out environmental checks, and also to look for any signs that nuclear material is being smuggled in or out of the facility. The computer system inspectors currently use for comparing data from earlier visits, for instance, was built in the 1970s and largely paper based. An IAEA spokesman said this was extremely inefficient and makes searching for anomalies like searching for a needle in a haystack. The organisation is aiming to start a system upgrade in November, aiming to provide inspectors in the field with secure online access to previous inspection data, design blueprints of nuclear facilities, even satellite images of the plant. Where possible, it hopes to link the system with national records of the import and export of nuclear materials. Further analysis of these could help spot potential smuggling activities or illicit technology transfers between countries, according to a spokesman. Computer specialist at the IAEA, Peter Smith, would like to be able to incorporate state of the art visualisation techniques, more familiar to video games players, into the inspector's toolkit. "The commercials you now see have people are moving around in a virtual world," he said. "If we could have that on our laptops, we could be walking through the plant seeing, on the laptop, how the plant should look. "And if there's a door in the wall that is not on our laptop, then we have a problem." The IAEA estimates the total cost of the four year project to upgrade its technology will be 40m. So far it has only received 11m from the US and the UK. "Failure to replace the hardware and software, and to integrate fully all the information system components will carry large risks," said an agency statement.


Other things being equal, the notion of entrepreneurs languishing in jail while their companies are sold off for a song ought to be bad for business. But in the looking glass world of modern Russia, the opposite might just be true, a new report has argued. The study, from the Centre for Economic Policy Research, does not praise the rough handling of oil company Yukos. But it argues that more rigorous tax policing has benefited all Russian firms, even targets of the tax police. "An increase in tax enforcement can increase the amount of dividends and other income outside shareholders will receive, even accounting for increased levels of taxation," the authors say. The paper's reasoning is complex, and is based on a sophisticated model of the relationship between tax regimes and corporate governance in particular, the propensity of management to steal from the company. The calculations demonstrated what many Russian analysts already knew: that increasing the tax rate increases the amount that managers steal, since undeclared income becomes relatively more valuable. In the West, meanwhile, higher tax rates translate far more smoothly into higher government revenues. On the other hand, increasing the rigour with which taxes are collected encourages companies to become more transparent, forcing them to be able to demonstrate their financial position far more accurately. The net result, the authors say, is that the extra amount companies pay in tax is more than compensated for by greater efficiency and financial soundness. After Vladimir Putin became president in 2000, he did not raise taxes, but put a lot of effort too much, critics argue into enforcement. Since then, the Russian stock market has more than trebled in value, a rise the authors attribute at least in part to the newly tough approach. The report highlights the case of Sibneft, a Russian oil company that came close to merging with Yukos last year. After Mr Putin came to power, the company's overall effective tax rate rose from 2.6% to 10.4%, and Sibneft was the target of a series of aggressive raids by fiscal police. But shareholders benefited hugely: Sibneft started to pay dividends 53m in 2000 and almost 1bn in 2001 and closed down the network of opaque subsidiaries it had previously used for siphoning off unofficial funds. According to the authors, although a variety of changes were sweeping through Russian industry at the time, the increase in tax enforcement is the only likely explanation for the change of fortunes at Sibneft and many of its peers. Does this analysis make sense? In part, certainly. For all its faults, corporate Russia has become far more orderly and law abiding since 2000. Companies have rushed to list their shares on international stock exchanges something unthinkable in the wilder days of the 1990s and most large firms now produce their accounts to international standards. Foreign direct investment, long negligible, is starting to flow in serious amounts 7bn in 2003 and stock market returns have been among the healthiest in Europe. But the authors' model does not quite cover all the complexities. For a start, the model assumes that the various parties have clearly defined motivation: companies want to maximise profit, governments want to maximise tax revenue. In fact, the alarmingly close connections between big business and government in Russia connections often greased by bribery blur the apparently antagonistic relationship. Companies can, for example, persuade officials to overlook non payment of taxes. And the authors' definition of tax enforcement seems unrealistically Western. Genuine, disinterested tax collection might well work wonders in Russia; the problem with recent examples has been the erratic and unpredictable way laws are enforced. The case against Yukos, for example, has moved in fits and starts, with little clarity from the government about its intentions, and little faith from investors that the letter of the law would be followed. As far as most commentators are concerned, the state is pursuing Yukos out of a political vendetta, rather than simply to enforce fiscal rectitude. Since Yukos' founder, Mikhail Khodorkovsky, was arrested a year ago, the Russian market has dropped by 10% an indication that few investors feel optimistic about the salutary effect on corporate performance.