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New VAT, ‘view added tax’, may add to the stealth tax payable

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There is going to be a tax on properties with scenic views according to reports. The Labour government is proposing to tax homes with sea views, or those located in serene surroundings like hills, mountains, lakes or rivers. Even a golf course in the vicinity would attract the tax.

The additional tax will become applicable to homes with a specified number of rooms than the usual average, with large gardens, roof terraces or balconies. The proposal is expected to be part of a revaluation of each of the properties in England, the first after such a revaluation done 1991. Officials undertaking the groundwork for the revaluation have been instructed to get data on these aspects.

It is understood that deputy prime minister John Prescott’s office has prepared documentation on the proposal. Media reports indicated that the Valuation Office Agency has a “new computer-assisted mass appraisal system” to help officials obtain specific details on every property in England.

MeanWhile, the Conservatives have criticised the plan. Caroline Spelman, Conservative local government spokesman, alleged that the government is preparing a stealth tax on the middle classes. She revealed that the plan has “value significance codes” covering 66 features and the government had spent 45 million pounds on the computer system.

The government had postponed the revaluation, which was due in 2007 to 2010 because it feared a backlash over higher council tax bills. The M.P.s are now discussing plans for the revaluation.

According to the proposal, factors like a sea view will have a bearing if these have a significant influence on the overall value of the property. A swimming pool or tennis court along with views of the sea, hills, mountains, lakes or rivers, may attract the proposed tax, according to sources.

The council tax is now structured on eight bands, with the top-rung H band property holders paying twice as much as people on D band. A study of a revaluation exercise done in Wales last year will suggest that owners of D band property in England may be levied an extra 267 pounds on their bill if they go up one band and 534 pounds if they go up two bands.

The 1991 valuation fixed the value of a D band property at between 68,001 pounds and 88,000 pounds. Homes in other bands get bills, which are proportionately higher or lower.

All about Home Information Packs

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LONDON – The Government has rejected speculation that consumers looking to sell their homes would have to shell out £1,000 on Home Information Packs. These packs are being introduced in 2007 as a part of the Government’s initiative to change the way a property is brought and sold.

Homeowners will have to put these packs out detailing a professional survey of the property, evidence of ownership and local authority searches before they can sell their home. The Government said that these packs would cost a total of £635 and not £1,000 as is speculated.

Critics say that the introduction of these packs would spawn fake inspectors who would have little knowledge of the property concerned. “Home information packs will be a breeding ground for cowboys, happy to ignore problems or, worse, not qualified to identify them. Most buyers will simply not trust the report of a home inspector paid by the seller and will end up paying for their own survey,” said Liberal Democrat spokesman Sarah Teather.
There are now widespread concerns that no insurance company will want to provide cover for these property inspectors and consumers would be burdened with the legal bills if the inspector’s report were found to be false. “Labour’s sellers’ packs will simply put up the cost of selling a home, create more red tape and ultimately undermine a fragile market,” said Caroline Spelman, a Tory spokeswoman.

But Yvette Cooper, the housing minister defended the introduction of these packs saying that they would save over £1 million each day that consumers spend in surveys, legal fees and searches, “Buying a home is stressful enough without losing hundreds of pounds on legal fees or valuations for properties that then fall through. It is crazy that over £1 million a day is wasted like this. Home Information Packs will save money and cut waste in buying and selling homes.”

So Solid Crew producer gets life sentence for murder

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LONDON – A former producer of the rap group So Solid Crew has been awarded a life sentence for murdering a love rival. Carl Morgan, 24 shot dead Colin Scarlett after the two got into a wrangle over Morgan’s former girlfriend Elisha McFarlane, who also happens to be the mother of his two children.

Morgan had been troubling McFarlane over her new relationship with Scarlett. Furious with the turn of events Colin Scarlett and two of his cronies looked up Morgan and beat him in front of his sister and his Elisha McFarlane. Morgan felt humiliated and in revenge shot Scarlett near Wandsworth, south London.

“You have taken a young life. You have used firearms in a situation, which is all too familiar, with the inevitable results that many lives have been ruined. Gun use is the scourge of our streets and causes misery and distress. The message must be that it will not be tolerated,” Judge Brian Barker told Morgan at the time of sentencing.

Dwayne Vincent, the band’s lead singer has also been charged with murder, but the jury failed to reach a verdict and consequently he faces retrial next month.

In his defense Morgan said that he did not seek Scarlett to exact revenge, but only wanted to know what they were fighting about, “I wanted to ask him what was this morning about because I didn’t have any problem with him at all. My only concern is the kids,” he told the jury adding that a third unknown gunman had shot Scarlett.

Richard Horwell, prosecuting alleged that Morgan had turned the streets of London violent ones resembling the wild west days, “It was a scene more reminiscent of the Wild West,” said Mr. Horwell.

BT to counter Sky’s move with Internet-TV service

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LONDON: Dominant telecoms company BT Group PLC, yesterday announced it would start a television service by next autumn in a deal with Philips who would make the required set top boxes.

The new service will offer free-to-air television channels picked up via a traditional aerial, which means there will be no TV subscription charges unlike in cable or Sky TV services. It will also provide content on-demand, such as movies as well as a “catch-up” TV service that would provide content from an archive of recent programmes.

These services will be charged for. The installation will include a digital personal video recorder (PVR), with an 80-hour storage capacity. This PVR will be made by Dutch company Philips.

BT’s offering will basically be a broadband connection integrated with a freeview decoder that will pick up digital terrestrial television signal. It will be aimed at the huge market – 12 to 13 million households that are reluctant to take up pay-television.

BT is expected to charge no more than £25 a month – the typical fees for a low-end television package. BT may find it difficult to convince people that what they are selling is actually a form of pay TV.

The “converged TV service” will initially be available only to BT’s 2 million broadband customers.

BT’s planned entry into the television market is seen as a reaction to BskyB’s announcement that it would make a foray into the telecoms market some time next year. Sky had earlier announced its intention to offer a bundled TV-Internet service aiming to get the broadband customers of BT and others.

Until recently, both Sky TV and BT have been working as allies reselling each other’s products to create an offering that will match that of NTL and Telewest. BT terminated this partnership after Sky’s announcement to enter the telecoms market.

Sky TV is yet to announce a launch date for its video-on-demand service.

BT also said that it would not bid again for rights to televise Premier League football matches for which competitor Sky is also a bidder.

Government accused of being lax over quarantine procedures

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UK government vets have received flak for advising private bird importers for keeping different birds in the same quarantine facility. In fact, Shadow environment secretary Oliver Letwin questioned as to why quarantine procedures were “so lax that birds from different continents are kept together, test samples are pooled”.

A licensed quarantine facility in Essex had a consignment of parrots from South America which were kept in the same quarantine unit as a flock of exotic birds from Taiwan. As per European regulations, mixing of bird consignments from different countries is not permitted because it invites risk of avian flu.

Though, a senior government vet said mixing of bird consignments was allowed under EU quarantine regulations, Cristiana Senni of the World Parrot Trust countered by saying that the EU regulations do allow for mixing consignments of birds. Ms. Senni added: “This, of course, is an obvious requirement, otherwise the whole principle of quarantine would be useless, as this latest incident showed”.

Officials at Defra (Department of Environment, Food and Rural Affairs) are investigating the events that led to the case of the H5N1 virus at a quarantine facility in Essex.

Environment Secretary, Margaret Beckett, told MPs on Wednesday that Britain was planning to introduce new measures to stem the spread of bird flu. Among them one includes keeping poultry indoors.

Meanwhile, bird markets and fairs in the UK are going to be banned following a move by the EU which decided to prohibit the importation of exotic birds into Europe.

It is also averred that some other birds which died while in quarantine may have also been infected with the H5N1 virus. It is reported that 32 birds which died before October 16th, the day when first parrot diagnosed of dying of bird flu, are being kept in storage. Ms. Beckett said: “Initial tests, which have not yet been validated, indentified that H5 is present in some of these birds.”

BBC is shutting down East European services, to launch Arabic TV channel

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LONDON: The BBC World Service is shutting down 10 of its foreign language broadcasts, mostly targeting the Eastern European countries, clearly indicating it is sensitive to the changed post-cold war world scenario. At one time, people in countries in the erstwhile Soviet bloc relied on BBC service for reliable and objective information.

The company also announced that it is launching an Arabic language television news and information service in the Middle East.

BBC’s World Service is broadcast in 43 languages and has a weekly listnership of more than 149 million. The company’s director of World Service Nigel Chapman said the mix of services has to evolve as the world changes.

BBC said the Arabic Television Service will be broadcast 12 hours a day across the Middle East, beginning 2007. It will be freely available through a satellite or cable TV connection. The service has correspondents in practically every Middle East country and the radio broadcasts now draw 12 million listeners each week. It also has an Arabic online service, BBCArabic.com.

The new service, estimated to cost 19 million pounds a year, will be funded by the British foreign office, which is spending 239 million pounds in 2005 for the World Service. The service will be in direct competition with al-Jazeera, the Qatar-based news service.

Chapman said listener figures have fallen steadily in Europe and many of the services being closed were more relevant to the cold war than the current geo-political scenario.

The services to be cancelled are broadcasts in Bulgarian, Croatian, Czech, Greek, Hungarian, Kazakh, Polish, Slovak, Slovene and Thai. There will be loss of 218 jobs in the language services and 18 in other areas. The Arabic service will create 201 jobs, the company said.

Meanwhile, journalist and broadcasting unions criticised the move, saying it undermined the World Service’s claim to be a truly global operation and ignored evidence that some of the affected countries were far from thriving democracies.

PCs damage pockets, environment

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PC and software companies are expressing concern for the environment and natural surroundings like never before. Leading PC maker Fujitsu Siemens has come up with an interesting observation. The PC maker pointed out that a whopping 123 million pounds is wasted every year throughout UK simply because the PCs are not properly shut down.

This is a gross human error and simply being too lazy. A lot of hard earned money and energy is getting wasted. All this due to sheer negligence on the part of the individuals.

Leaving the computers on for the entire night can prove to be extremely hazardous. The surrounding environment gets affected to a great extent. The financial losses are also staggering. A survey was carried out wherein a majority of people confessed that they never shut down the PCs.

Experts feel that shutting down the PCs after work should become a policy and a priority for all the companies. As the world in general grapples with energy deficit, UK too laid a broad framework for energy conservation.

The beginning of the “Energy Saving Week” saw a nationwide campaign aimed at educating the people regarding the hazards and its effects on the environment, if the computers and other electrical appliances are not shut down properly. These hazards have a great impact on the climate too.

The energy prices have shot up in the recent past and the wastage of precious energy by not switching off the computers has come in for severe criticism. The magnitude of the problem can be ascertained from the fact that the European Union had to pass a legislation to curb the wastage of energy. This has certainly become a raging topic in Europe. The computers emit thousands of tons of carbon dioxide which is detrimental to human health.

A lot of other electrical appliances such as chargers, digital boxes too emit carbon dioxide. Too much emission of carbon dioxide in the atmosphere causes climatic changes. It also results in global warming. Excess emissions can also lead to skin diseases and respiratory problems. The “Independent “has made an interesting observation. When left on standby, the homes PCs emit carbon dioxide to the tune of 220,000 tons.

This coupled with the emission from other devices results in the generation of millions of tons of carbon dioxide. People living in London are already facing this hazard by getting black patches on their nose. A lot of energy and power that can be put to productive use is getting wasted. A good 75 percent of the energy consumed by the PCs could be saved, simply by switching off the computer after work.

Ericsson to buy out Marconi’s telecom arm

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Swedish telecoms equipment major Ericsson has almost finalised a deal to buy out Marconi its UK rival for a sum of £1.2bn ($2.1bn). Following the sale, Marconi’s shareholders will receive 275 pence per share. Earlier, Siemens AG and France’s Alcatel SA had also evinced interest in acquiring Marconi’s telecom arm.

After the sell-out, Marconi will concentrate on its services business and it will be rechristened as Telent Plc. Mike Parton, Marconi’s Chief Executive confessed in August that the company was having talks with unidentified suitors for its possible takeover.

Earlier, it had failed to get into any agreement for a 10 billion-pound contract with its biggest client BT Group Plc. Marconi publicly announced in April that if BT did not select it for its contracts, it would lose out on £50 million.

The buyout, it is opined, will help Ericsson expand its business in the market for converging fixed and mobile communications like IP telephony. It has already established itself as a global leader in sales of mobile equipments to operators the world over.

Chief executive of Ericsson, Carl-Henric Svanberg said: “The acquisition of the Marconi businesses has a compelling strategic logic and is a robust financial case”.

Marconi has 9,000 staff working world over. 2,000 workers of its UK workers will become part of Telent operations.

This deal will see Marconi getting £185 million towards its pension plan. A further £490 million will be kept in an escrow account for the potential benefit of the plan.

Speaking about the deal, Marconi chairman John Devaney said: “Over a period of several years, we have had conversations with a number of potential partners regarding the necessary consolidation in our industry. In Ericsson, we have found a partner that has the scale and global reach to take our equipment business forward in a way that we would not have been able to do alone.”

Marconi’s stock market value is 731 million pounds as of date. Formed 119 years ago, Marconi was suggested by Credit Suisse First Boston’s analysts to split itself and then “sell off the parts.” Marconi hit its rock-bottom when its share value was eroded by half in April after BT overlooked it for its network upgrade.

New Look acquires 34 Littlewoods stores from ABF

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LONDON – Womenswear retailer New Look Group PLC has embarked on an earnest expansion drive with the purchase of 34 Littlewoods stores from Associated British Foods PLC in a deal worth in the region of £11 million.

The fashion chain which was taken private last year will utilize the additional space in expanding its menswear segment. This would also allow it to launch a full childrens- wear segment as well. “This sort of deal comes very, very rarely. The last time big space like this came on the market was when C&A; withdrew from the UK six years ago,” said Phil Wrigley, New Look’s chief executive. New Look, which started out with 1.6 million square feet of trading space in 2004, said that the deal would go a long way in helping it reach its target of 2.4 million square feet by March 2006.

The retailer completed this purchase yesterday from Associated British Foods – the owner of budget retailer Primark. ABF had purchased 120 Littlewoods stores in July and unloaded these 34 stores as they were seen as surplus to its requirements. ABF added that it would be selling another 40 Littlewoods stores. There were no details on who the purchaser of these stores was.
New Look operates 541 stores in the UK and 211 in France under its Mim brand.

The group’s founder and biggest shareholder, Tom Singh, took the group private 20 months ago. Apax and Permira had backed Singh in the deal. Earlier this year, their combined investment of £200 million was repaid in full. Analysts say that New Look could return to the stock markets in the next two years. However, the company itself has remained non-committal about this.

Britain has 3rd highest number of spyware infected PCs, says study

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LONDON: Britain has the third highest rate of spyware infections on PCs used by its countrymen. Spyware is the secret programs implanted without the user’s knowledge with the intention of tracking what the user does with his machine. Thailand and the U.S. are the two countries with more infected PCs.

According to a research study by security firm Webroot Software, almost 55 per cent of PCs with Windows programmes are also infected with adware, a form of spyware that can subject people to pop-up adverts, hijack their homepage and install bookmarks. It also said 21 per cent of the machines have Trojans and five per cent system monitors.

The report was released to coincide with a meeting in London of MPs and computer experts to discuss what can be done to combat spyware.

Webroot says some of the spyware programs are so malicious that they get into the PCs unnoticed and steal confidential information, including passwords and log-in details.
Spyware and adware travel alongside file-sharing programs or media files that people download from the web.

Spyware and adware can be countered by programs such as AdAware and Spybot.

Webroot said Britain has 18 “spies” on an average PC if cookies are included. Spyware, at its basic levels, is a program that tracks online and offline activities of the PC user, which are shared with third parties without the user’s consent. It can consist of system monitoring tools that record everything from visited sites to chat sessions, while also including keylogger programs, which capture keystroke information such as usernames and passwords used for online banking.

Webroot estimates that spyware may be costing the country as much as 445 million pounds in lost time, productivity and in computer repairs.

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