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Greens to make coalition decision

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Image Irish junior coalition partners the Greens are to decide whether to pull out of the government over the dramatic resignation of Taoiseach Brian Cowen as leader of the ruling Fianna Fail party. TDs and senators are holding crisis talks to discuss the future of the troubled coalition. Mr Cowen has bowed to an onslaught of pressure and criticism from former allies and quit as party leader after an epic week of political chaos sparked by a failed leadership heave, six ministerial resignations and a botched Cabinet reshuffle. However the Taoiseach vowed to stay on as head of the coalition government until the March 11 General Election. The Greens threatened to bring down the Government on Thursday in the row over filling Cabinet seats left empty by the string of ministerial resignations but remained in the coalition to ensure the passing of the Finance Bill, which gives effect to Budget 2011 and other new cost-saving measures. But the main opposition parties have now agreed to facilitate the passage of the proposed legislation by the end of the week in return for the election date being brought forward. Fine Gael has also threatened to table a motion of no confidence in Mr Cowen as Taoiseach in the Dail (parliament) next Tuesday, as a motion of no confidence in the Government is being debated, unless an immediate date for the general election is set. Meanwhile four senior Fianna Fail politicians have begun to canvas for support in the leadership race. Former foreign affairs minister Micheal Martin, who last week failed to get the support from party colleagues for a heave, is now a front runner. Finance minister Brian Lenihan, tourism minister Mary Hanafin and social protection minister Eamon O Cuiv also intend to fight it out for the post - to be filled on Wednesday.

Clegg assures over Lib Dem future

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Image Deputy Prime Minister Nick Clegg has insisted that the Liberal Democrats and Conservatives will fight the next general election as separate parties. The Lib Dem leader said that the fact that the two parties had entered into a coalition together did not mean that they were "joined at the hip". He acknowledged, however, that he and David Cameron would be defending a "shared record" at the polls and that the debate between them would be "more civilised" than normal. "We will fight the next general election as separate and independent parties," he told BBC1's The Andrew Marr Show. "Coalition is not a pact, it is not a merger, it doesn't mean that you become joined at the hip. It means that you retain your separate identities. "Clearly we will be not only setting out different and separate visions for the future but, yes, we will also be drawing on a shared record of what we sought to achieve during this five-year parliament. "Clearly on that we will speak about it in terms which will be more temperate and more civilised than would normally be the case. I don't think that that means we have to paper over our identity during the course of this parliament." His comments come amid anger among some Tory MPs at what they saw as a "soft-pedalling" by their party in the recent Oldham East and Saddleworth by election campaign in order to prevent a collapse of the Lib Dem vote.

Bodyguard faces second affair probe

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Image Alan Johnson's ex-police bodyguard, suspended over an alleged affair with the former shadow chancellor's wife, will be investigated over claims of a second relationship, sources said. Close protection officer Pc Paul Rice guarded Mr Johnson when he was home secretary. He is thought to have worked for Theresa May since she took over at the Home Office last May. An internal police probe will now look into both alleged relationships, it is understood. The second was reportedly with a 50-year-old woman in the politician's Hull constituency. But this relationship, if confirmed, may not constitute misconduct. Mr Johnson quit Labour's frontbench on Thursday, forcing leader Ed Miliband to reshuffle his top team less than four months into the job. In a statement the following day, Scotland Yard said: "A Metropolitan Police Service (MPS) Specialist Operations Police Constable has today, Friday January 21, been suspended from duty pending the outcome of the Directorate of Professional Standards (DPS) investigation into allegations reported in the media regarding an inappropriate relationship. "The matter was referred by the MPS Specialist Operations Unit to the DPS on January 20. A thorough investigation is now under way. As the allegation is subject to investigation, we are not able to comment further at this stage." Mr Johnson has refused to elaborate on the "personal reasons" for his shock resignation, saying only that he was finding it "difficult to cope" with "personal issues in my private life". He has been married to Laura, his second wife, for almost 20 years. The couple have a 10-year-old son.

'Don't sell off our forests' plea

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Image Famous names ranging from Annie Lennox and Dame Judi Dench to the Archbishop of Canterbury have implored the Government not to sell off the country's publicly-owned forests. Almost 90 prominent figures signed a letter claiming that such a sale would be "misjudged and short-sighted". The long list of concerned celebrities, politicians, media figures and others includes artist Tracey Emin, model Lily Cole, chef Hugh Fearnley-Whittingstall, former Mayor of London Ken Livingstone, novelist Julian Barnes, actress Gillian Anderson, broadcaster Dame Joan Bakewell, actor Richard E Grant and designer Dame Vivienne Westwood. The letter by the Save England's Forests campaign said a bill being debated in Parliament would allow the Government to sell the entire public forest estate to commercial interests on the open market. It also expressed fears that over time, access to currently public woodland would become limited and its protection eroded. The campaigners wrote: "We are an island nation yet more people escape to the forest than to the seaside. "Our forests nurture countless species of native plants and wildlife. We have relied on them since time immemorial yet we are only a heartbeat in their history... "We, the undersigned, believe it unconscionable that future generations will no longer enjoy the guarantee of a public forest estate." They urged the Government to suspend any significant sales "until the public has been fully consulted", adding: "We expect our leaders to engage in real dialogue with communities throughout the country to create a sustainable future for our public woods and forests." Environment Secretary Caroline Spelman has insisted there are no plans to sell nature reserves and promised that community groups and charities would play a greater role in protecting important habitats. The state currently owns 18% of forests and woodland in England but spending cuts could result in them being sold off or given away.

Private schools in bid to go 'free'

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Image A number of independent schools are set to scrap their fees and become "free schools" under plans brought in by the Government. Among those hoping to break with their past and enter the state school system are a 400-year-old co-educational Yorkshire grammar school and a small independent primary school in Warwickshire. The planned changes come after Education Secretary Michael Gove rushed through legislation shortly after the election to pave the way for parents, charities and businesses to set up independent schools within the state system. A proposal by Batley Grammar School in West Yorkshire to ditch its charges of up to £2,949 per term has been approved by the Government to move to an advanced stage with a view to the school joining the state sector in September. Headteacher Brigid Tullie said: "There are precedents for independent schools moving back to the maintained sector albeit as academies. "That has been very positive with many such schools being amongst the most oversubscribed in the country. We intend to follow that success." The Priors School in Warwickshire, a 164-year-old establishment that relies on voluntary donations for the majority of its income, is also in the final stages of the process of becoming a free school. If it succeeds, it will offer a number of additional places free of charge to children from outside the villages of Priors Marston and Priors Hardwick, who currently have to pay fees. North London's Wisdom School meanwhile will get rid of its annual fees of £5,100 for primary school pupils and £5,700 for secondary school pupils if its application for free school status is successful. But the free schools idea has met with opposition in some quarters, with the National Union of Teachers (NUT) warning the Government earlier this month to stop "playing with the educational future of this country" and scrap the plans.

Israeli inquiry backs flotilla raid

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Image An Israeli inquiry commission has defended the actions of its troops during last year's deadly raid on a Gaza-bound protest flotilla sailing from Turkey. Israeli naval commandos killed nine activists aboard the Turkish protest ship Mavi Marmara on May 31 after passengers resisted the takeover of the vessel in international waters. The nearly 300-page report released by the government-appointed commission says that the actions of the soldiers "were found to be legal pursuant to the rules of international law." The commission, headed by a retired Supreme Court justice, included five Israeli members and two international observers. The bloodshed drew heavy international condemnation directed at Israel and forced it to ease the blockade on the Hamas-ruled Gaza Strip.

Harman call over phone hack claims

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Image Labour deputy leader Harriet Harman says that the police must investigate allegations of phone-hacking by journalists, amid reports that Gordon Brown may have been among the victims. Mr Brown was said to have written at least one letter to the Metropolitan Police over concerns that his mobile phone was being targeted while he was chancellor of the exchequer, according to the Independent on Sunday. The concerns were said to have coincided with the latter stages of Andy Coulson's editorship of the News of the World. Mr Coulson announced on Friday that he was resigning as David Cameron's director of communications amid continuing allegations of phone hacking by the paper's journalists while he was in charge. Mr Brown's office declined to comment on suggestions that the former prime minister had raised the matter with the police, but Ms Harman said that it was important that all allegations were properly investigated. "Hacking into people's phones is illegal. Obviously the criminal law has got to be complied with and if it is broken then it should be investigated by the police and it should be enforced," she told Sky News's Murnaghan programme. "Nobody is above the law, no newspaper editor, no journalist." Earlier, Tony Blair's former communications director Alastair Campbell denounced the "lacklustre" way in which the police had investigated the phone hacking allegations as a "scandal". Meanwhile a media lawyer has claimed that the phone-hacking allegations were not just confined to one newspaper. Mark Lewis, who acted for Gordon Taylor of the Professional Footballers' Association in a damages claim against the News of the World, said he was representing four people who believe they were targeted by other newspapers.

Scots seek to end US haggis ban

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Image Scottish Rural Affairs Secretary Richard Lochhead invited a delegation of American politicians to Scotland in a bid to persuade them to reverse a 40-year ban on the haggis. The iconic Scottish dish is been barred in the US because its food safety department prohibits the use of sheep lungs in food products. Mr Lochhead raised the matter with US authorities last year and said he hoped to persuade the delegation that "it's time to allow imports to resume". He said the US was a "potentially lucrative market" that could be worth "millions" to Scottish haggis producers. Mr Lochhead said: "We want to capitalise on the diaspora of Scots in the US and many of them would enjoy the opportunity to indulge in authentic Scottish haggis to accompany their neeps and tatties on Burns night. "Scotland's produce is amongst the best in the world and I've asked US Department of Agriculture officials to come here to see for themselves the high standards we have in animal health and processing. "This will help them realise that our haggis is produced to the highest standards and that it's time to allow imports to resume."

Talks on bank bonuses delayed again

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Image A deal on bank bonuses and lending levels has been delayed further as the Government and Britain's biggest banks fail to agree business loan targets, it has been reported. An announcement on the talks, known as Project Merlin, was expected as early as Monday but is now not likely until at least next week or later in February. One of the disagreements is said to be over figures being mooted for lending to small businesses in the year ahead. Bank bonuses and transparency also remain a sticking point. Any agreement is also likely to be delayed by Chancellor George Osborne's upcoming commitments. He is due to attend the World Economic Forum in Davos towards the end of the week. Project Merlin was designed as a way of reaching agreement on bank pay and lending to businesses, before this year's controversial bonus round. John Varley, until recently chief executive of Barclays, has been leading the industry's involvement in the talks with the Government. The Treasury said that the negotiations were still taking place. However, talks have dragged on amid difficulties over finalising lending commitments and because banks are unwilling to cut their bonus levels for the third year in a row. Banks are believed to be concerned about promising to lend a certain amount to businesses, many of which face further shocks from the economic crisis. The Government is reportedly keen to ensure any lending goal is stretching enough, and that some concession on bonus handouts is provided by banks. A further delay relates to the impact of upcoming recommendations from the Independent Commission on Banking which is looking into whether or not to break up the big banks.

More 'agony' as Iraq trial delayed

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Image The fiancee of a British security worker killed in an execution-style shooting in Iraq faces further "agony" after his alleged killer's trial was adjourned again. Paul McGuigan, 37, a former Royal Marine originally from Peebles in the Scottish Borders, was gunned down alongside Australian Darren Hoare in August 2009. Their alleged killer Danny Fitzsimons, 30, from Greater Manchester, worked alongside the two men for private security firm ArmourGroup in Iraq's fortified green zone. A Baghdad court was expected to pass verdict, but the judge moved for yet another adjournment to consider his mental state. He could face the death penalty if he is convicted of the killing. The case has already faced several delays while the judge considers whether to allow Mr Fitzsimon's previous diagnosis of post-traumatic stress syndrome to be allowed into evidence. Fitzsimons is charged with two counts of premeditated murder for shooting the British and Australian contractors, and attempted murder of an Iraqi guard. He has pleaded not guilty, claiming he was mentally ill at the time and acting in self-defence. Mr McGuigan's fiancee Nicci Prestage, 37, made in impassioned plea for the court to disregard the diagnosis, claiming there was scant evidence to support the claim. She also said her fiance had met Fitzsimons only a few hours before his death, and refuted defence claims that they were involved in a drunken brawl. The Iraqi judge set a preliminary date of February 20 for Fitzsimon's next hearing to allow him to consider further evidence. Miss Prestage said: "It is both frustrating and upsetting to hear there will be yet another delay before we have the outcome of the trial. People have no idea of the agony victims and their families go through at times like this."

Quake recorded in west of Scotland

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Image A small earthquake has hit the west of Scotland, the British Geological Survey said. The quake measured 3.5 on the Richter scale and was recorded in Glenuig, west of Fort William, at 6.02am on Sunday. It was felt in Skye, Mull, Inverness and Oban and is the largest earthquake recorded in the area since January 2008, when a tremor of the same magnitude was recorded near Glenfinnan. The survey said such an earthquake can be felt as far as 120 km away. One person reported being awoken by "noise and vibration" during the quake.

Police urged to reopen hack probe

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Image Scotland Yard is under intense pressure to reopen its investigation into phone hacking by journalists amid claims that Gordon Brown may have been among the victims. Senior politicians from both Government and opposition combined to demand that police investigate fully the latest allegations that the mobile phones of prominent public figures had been illegally targeted. Labour deputy leader Harriet Harman said the law must be enforced while the Lib Dem Energy Secretary Chris Huhne said it was "implausible" to claim the practice was confined to "one rogue reporter" at the News of the World. Their comments came as it was reported that Mr Brown had written to the Metropolitan Police Commissioner expressing concern that his voicemail messages may have been broken into. The former prime minister is the most senior public figure to be drawn into the controversy, which last week saw Andy Coulson resign as David Cameron's director of communications amid continuing allegations of phone hacking by reporters at the News of the World when he was editor of the paper. Mr Brown's office would not comment on the reports, while Scotland Yard also declined to respond to the latest allegations. However Ms Harman said that the police had a clear duty to uphold the law. "Hacking into people's phones is illegal. Obviously the criminal law has got to be complied with and if it is broken then it should be investigated by the police and it should be enforced," she told Sky News's Murnaghan programme. "Nobody is above the law, no newspaper editor, no journalist." Mr Huhne said that it was clear that the practice extended far beyond the News of the World's former royal correspondent Clive Goodman, who was jailed in 2007 along with private investigator Glenn Mulcaire. "Why would the royal correspondent be interested in hacking the voicemails of (Lib Dem deputy leader) Simon Hughes for example?" he told the BBC1 Politics Show. "It is very clearly important for Sir Paul Stephenson, having now taken control of the Met to make sure that, along with the CPS (Crown Prosecution Service) this is really dealt with. I have worked on a newspaper and I have been a journalist and it does seem to me totally implausible that this was a situation where it was limited to one journalist. I was rather surprised that the police seem to have accepted that story rather than investigating further."

Green Party quits Irish government

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Image The Irish government was on the brink of collapse as the Green Party walked out blaming a complete breakdown in trust, patience and communications in coalition partners Fianna Fail. John Gormley, leader of the junior coalition partner, said people have lost confidence in politics after more than a week of unprecedented chaos sparked by a leadership campaign against Taoiseach Brian Cowen. Mr Gormley, who has resigned as environment minister, held crisis talks with TDs and senators after Mr Cowen quit as Fianna Fail party leader but vowed to remain Taoiseach and lead the country until the March 11 general election. Flanked by TDs and senators after crisis talks in Dublin, Mr Gormley said he believed an election was absolutely necessary. "The Irish people have begun to lose confidence in politics and in the political process," he said. "They have watched aghast the conduct in Dail Eireann of political parties. The Irish people expect and deserve better." The dramatic move was intended to bring certainty to the electorate and over the economy but issues over fast-tracking the Finance Bill, to give effect to the budget, mean a deadline for an end to the coalition has not been set. The Greens vowed to support the legislation from the opposition benches and said Fine Gael and Labour had given an undertaking to facilitate the passage of the bill. "We also hope that the Fianna Fail party will make every effort to fast-track this legislation," Mr Gormley added. A dignified Green Party made the announcement in Dublin's Merrion Hotel, in the same room where Mr Cowen dramatically announced his resignation on Saturday. IMF officials also based themselves in the hotel while agreeing Ireland's multibillion-euro bailout. Mr Gormley revealed the national executive - which last November called for a general election to be set this month - finally decided to quit government after a series of frantic meetings and telephone calls and texts from party members. Talks will begin on Monday between Department of Finance officials and the opposition to discuss a timetable for the passage of the controversial legislation through parliament.

Iraq murder trial verdict delayed

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Image A British security contractor on trial for murdering two colleagues in Iraq will have to wait until next month to find out his fate. The case of Danny Fitzsimons, 30, from Greater Manchester, has been adjourned to February 20 to allow the court to consider his mental state at the time of the shooting in August 2009. He is the first Westerner to be tried by an Iraqi court since the start of the Iraq war nearly eight years ago. Fitzsimons told a three-judge panel that he was acting in self-defence when he shot his ArmorGroup colleagues Paul McGuigan, from Peebles in the Scottish Borders, and Australian Darren Hoare, claiming that they had threatened to kill him after a whisky-fuelled brawl in Baghdad's Green Zone. Fitzsimons told the court he was held at gunpoint by former Royal Marine Mr McGuigan, 37, while Mr Hoare pushed him to the ground. He said: "I was seconds away from my death so I pulled my pistol," AP reported. "I shouted twice (for Mr McGuigan) to put down the weapon. He didn't respond to my commands, my requests, so I made a decision. I shot him twice in the chest." Fitzsimons said he fired a third shot in Mr McGuigan's face, and got into a wrestling match with Mr Hoare. Mr Hoare "was trying to push the pistol to my throat to kill me ... and while we were wrestling I fired two shots in the chest," Fitzsimons said. "I made the decision and pulled the trigger." Fitzsimons fled the scene and was running towards the British Embassy when an Iraqi guard who was at a guard post pointed his rifle at him and asked him to stop. Fitzsimons shot him in his left thigh. He is charged with two counts of murder and attempting to kill the guard. He could receive the death penalty if convicted on the murder charges. Fitzsimons pleaded not guilty to the killings but asked the judges to consider a plea agreement that would convict him on lesser manslaughter charges. Iraqi law requires defendants to enter their formal pleas at the end of the trial.

Recovery 'uneven' across UK cities

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Image Economic recovery will be "unevenly spread" across the country, with some cities needing extra Government help to create jobs this year, according to a new study. Research group Centre for Cities said many areas were now "bouncing back" from the recession, including some cities hardest hit by job losses such as Hull, Doncaster and Northampton. These cities all saw drops of 1.2% in the number of people claiming Jobseeker's Allowance in the past year, more than twice the UK average, said the report. Milton Keynes, Reading, Aberdeen, Leeds and Bristol were named as "cities to watch" amid predictions that they will be better insulated from the effects of the Government's spending cuts and have high potential to create private sector jobs. The study also revealed that more than one in three jobs in private companies were provided in 11 of Britain's major cities - London, Birmingham, Bristol, Edinburgh, Glasgow, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield. Five "vulnerable" cities were named as Sunderland, Liverpool, Birkenhead, Swansea and Newport in south Wales, which the research group said might not feel the full benefits of economic recovery for some time. Cities such as these will be affected more by Government spending cuts and will need extra financial support as well as a "realistic" local plan of action. Alexandra Jones, chief executive of the Centre for Cities, said: "Buoyant cities like Leeds and Bristol, which have been fast-growing and have lots of private sector jobs, are best placed to lead the UK's recovery. It's time these places had new financial freedoms such as full control over the local business rate, and new powers to raise money. They could also benefit from having London-style mayors. "During 2011, the UK cities most dependent on the public sector, and which have seen slower economic growth over the last decade, will find it more difficult to rebalance towards the private sector. These cities will need realistic plans of action to ride out the spending cuts and create jobs - but they will also need additional financial support from central Government." TUC General Secretary Brendan Barber said: "Vulnerable cities are suffering from low skills and high joblessness that hit consumer spending and business investment, but instead of providing financial support the government is piling on the misery with deep welfare cuts. A meaningful growth strategy from this government is long overdue."

Communities 'threatened by cuts'

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Image The Government has been warned that "savage" cuts in public spending are posing a threat to local communities and hitting the prospects for economic recovery, as a new dossier of job losses was published. Unison detailed around 100,000 posts facing the axe in local authorities, the NHS, police forces, the fire service and education following announcements in the past six weeks alone. The union said a growing number of workers were being consigned to the dole queue, threatening the services they provided. Recent announcements included 1,600 at the Heart of England NHS Trust, 1,200 council jobs in Hampshire, 1,000 in Norfolk and 400 in East Sussex, said Unison. Unison said the careers service had also fallen victim to cuts, with 8,000 jobs set to go by the end of March. General secretary Dave Prentis said: "This dossier makes very grim reading. Behind every statistic there are families desperate to keep a roof over their heads, food on the table and the dignity of a decent job. "With unemployment up to 2.5 million, the coalition cuts are blighting lives and wrecking the country's chances of recovery. Sacking workers and closing down essential services will not put the economy back on its feet. "The latest figures show record levels of unemployment for 16 to 24-year-olds, with one in five unable to find work. Getting the right help can make or break the future of young people desperately trying to find their feet, as well as workers made redundant struggling to retrain. "Cutting 8,000 jobs from the careers service will add to their difficulty. The hikes in tuition fees, education cuts and record unemployment means that many young people don't know which way to turn and now they will have one less place to turn to."

Fears over unemployment 'time bomb'

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Image More than 250,000 young people are growing up in a home where no-one has ever worked, according to figures published by the Government. Employment Minister Chris Grayling said the figures were a "ticking time bomb" left by Labour and were on top of 600,000 young people who have never worked since leaving education. The minister unveiled a programme aimed at giving young people extended work experience opportunities, as part of a drive to tackle the "blight" of youth unemployment. Under the new scheme, young people will be allowed to do work experience for up to eight weeks so they can get a "meaningful" stint in a business environment, gaining work experience, improving their CV and references and providing value to the employer, said the Government. Under the old system people were allowed to do only two weeks experience before facing a loss of benefits. Mr Grayling said: "Our new work experience scheme will give young people the chance to get valuable experience in a business for up to two months, which will make a real difference to their confidence, their employability and their prospects. This Government is making the changes that will give young people access to jobs and opportunities that can help them towards a brighter future. "Today's figures on children growing up in workless households highlight once again the shocking betrayal of this country's young people by the last Labour government. "Billions were squandered on the New Deal and Future Jobs Fund which too often merely put the young in short term, public sector jobs that were unsustainable. "Their failure to get young people into work will cost us dear in the long run, as the next generation have to shoulder the burden not only of the enormous debt left by Labour, but also lack the confidence to reach their potential. We have a big challenge ahead of us, but tackling youth unemployment is crucial for the future of our country and our labour market."

Cyclist Pendleton warns on potholes

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Image Britain has a pothole crisis and the nation's roads must be made safer, Olympic cyclist Victoria Pendleton has said. According to the latest figures, an average of around 10 potholes dot every mile of road in England and Wales, and the total number will pass two million for the first time this year. Cyclists are now being deterred from using their bikes because of poor road surfaces, Miss Pendleton said. "Following more bad weather this winter, potholes are still a serious problem for road users, particularly people cycling to work or school, cycling for fun, keeping fit, or even cycling professionally," she said. "We have to make our roads safer and more accessible for cyclists who often lack confidence to ride their bikes in and around urban areas because of poor road surfaces." Her comments follow warnings that councils will struggle to repair potholes because of a £165 million shortfall in funding. The Local Government Association, which represents around 350 councils, said highways departments will be hit by cuts as they begin to survey the damage exacerbated by the worst December weather in a century. According to the Asphalt Industry Alliance, every mile of local authority-owned road in England and Wales will have 10 potholes. The organisation, which produces a yearly report on the roads, said the number of potholes could reach two million by the spring. "This is a very serious issue. Cyclists and motorcyclists are the road users most vulnerable to accidents caused by potholes," the alliance's Helen Melhuish said. "If central government provided more funding to help get local roads back into reasonable condition, local authorities would be better able to implement their planned preventative maintenance programmes, rather than wasting already stretched funds on reactively filling potholes." Miss Pendleton, 30, is supporting an awards scheme to judge UK councils on repairs to potholes which occur when water repeatedly freezes and expands in cracks in the road. She said: "I'm getting involved because anything that showcases pothole repairs and encourages councils to improve their roads has to be a good thing for both cyclists and motorists."

Iberia merger sees new BA listing

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Image British Airways will embark on a new stockmarket journey when it is listed as part of International Consolidated Airline Group following its merger with Spanish rival Iberia. The former national carrier will be listed under its new name in markets in London and Madrid from 8am. Thursday marked the end of nearly 24 years of trading under the British Airways name. The merger was completed on Friday. Shares closed 5p lower at 282.5p on its last day as low-cost rival easyJet shook industry confidence with the announcement that soaring fuel costs were expected to double half-year losses. BA, whose shares were suspended on Friday, also saw no respite in its industrial dispute with union Unite. Its cabin crew overwhelmingly voted in favour of more strikes in their bitter dispute with the firm. The merger comes more than 20 years after British Airways joined the London stock market in a high-profile flotation which was 11 times oversubscribed. BA and Iberia will retain their brands in the initiative, which is expected to save 400 million euros (£337.3 million) a year by its fifth year. The combined group will have 419 aircraft flying to 205 destinations and will be Europe's second biggest airline by market value after Lufthansa. BA will also benefit from Iberia's strong presence in South America, where BA operates only a handful of routes. The newly formed group plans to aggressively expand through further acquisitions and has drawn up a list of 12 companies it wants to buy. Willie Walsh will step down as chief executive of BA to take up the same role at International Consolidated Airline Group. His basic pay will rise 12% from £735,000 to £825,000 a year.

Joanna Yeates suspect due in court

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Image The man accused of killing landscape architect Joanna Yeates is due to appear in court. Dutch engineer Vincent Tabak, 32, who lived next door to Miss Yeates, will appear before Bristol Magistrates' Court charged with her murder. Specialist search teams have been examining Tabak's flat at 44 Canynge Road, Clifton, Bristol, which he shares with his girlfriend, Tanja Morson. Tabak, a trilingual engineer, is an expert in the flow of people through buildings, including sports venues. Miss Yeates, 25, shared her rented home with her boyfriend, Greg Reardon, 27. She disappeared on Friday December 17 after going for Christmas drinks with colleagues at her architectural firm. Mr Reardon reported her missing after he returned to Bristol on December 19 following a weekend away visiting family in Sheffield. The university graduate's frozen body was found dumped on a verge in Longwood Lane, Failand, North Somerset, on Christmas Day. Her landlord, Chris Jefferies, 66, was arrested on December 30 and questioned for three days on suspicion of murder before being released on bail.
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