Spain’s property bust is only getting worse.

AFP

Cranes erecting the Pelly tower under construction in Seville.

Spain’s property bust is only getting worse. The wonder is that the country’s economy and banks are still this resilient.

The Spanish government said Tuesday that housing prices remained in free-fall in the third quarter, dropping 5.5% from a year earlier, the biggest decline since 2009.

This makes Spain, in many senses, the worst case of a property bust in the developed world—the country is already deep in its third consecutive year of falling prices, with no rebounds.

Last year, the pace of decline slowed significantly, signalling some light at the end of the tunnel, but another metaphor is called for instead: that last year’s respite was nothing more than a dead cat’s bounce.

The good news should be the overall amount of the decline, since Spain’s government says prices are only down 18%, in nominal terms, since their peak in early 2008.

But that doesn’t include the effect of Spain’s persistent inflation, one of the highest in the euro zone, which makes the real drop closer to 30%—Spain’s government didn’t provide real price data in today’s release.

After earlier predictions of a short-term correction have been smashed, some analysts now say prices may keep falling for the next two years, eroding Spain’s household wealth and banking balance sheets.

Meanwhile, banks are struggling to keep up with the loss in value of the collateral against €400 billion worth of loans to construction and real estate firms, an amount that remains unchanged since 2008.

For Luis Garicano, a professor of economics and strategy at the London School of Economics, this number is perhaps the most dangerous of those related to the bust, since it indicates the banking sector exposure to such loans hasn’t diminished.

He estimates that a possible explanation is that banks have exchanged some non-performing loans for property that they now own, but not enough to offset the rising interest on the loans.

Many, if not most of these loans, are being rolled over to keep zombie developers in business, in the hope that the market will recover.

All the same, banks have also turned into property developers now.

Walk into any Spanish bank branch, looking for a mortgage, and you will see that is much easier to get it if you’ll just take one of the many, many houses the bank acquired from a bankrupt developer. But many will say why worry? The same house will be even cheaper next month.

MAN ARRESTED FOR ASSAULTING POLICE OFFICER

 

Police have arrested a man identified as DFM, accused of assaulting a police officer and of driving his car whilst under the influence of alcohol in Roquetas de Mar. Command sources indicated to Europa Press that the incident occurred on Sunday when, at around 20.00hrs the 27 year-old man came by car to the Guardia Civil headquarters in Roquetas de Mar in an evident state of drunkenness to formulate a complaint against his former partner. At that time, and as a result of the attitude displayed by the man, agents requested the presence of local police officers who, once arrived at the barracks, were asked to carry out a breath test to the individual, yielding a rate of 0.83 milligrams of blood alcohol per litre of air breathed. As a result the man was arrested. He tried to fight of the agents and the arrest, struggling to get free of the police and came to attack one of them causing a bruise to the officer's head, resulting in the man being charged with assaulting an officer. The detainee, whose steps were performed at the same time, has also made a complaint to the Court for an alleged crime of abuse of authority. He is due in Court of Instruction No. 1 of Roquetas de Mar.

Israeli soldier Gilad Schalit has been moved from the Gaza Strip to Egyp

 

Israeli soldier Gilad Schalit has been moved from the Gaza Strip to Egypt, Palestinian officials in Gaza said. The move begins an elaborate prisoner swap deal in which hundreds of Palestinian inmates are to be freed in return for the captured tank crewman. The officials said buses of Palestinian prisoners are now moving from Israel into Egypt en route to Gaza. Israel's Army Radio station, citing anonymous Israeli officials, confirmed the report. In all, Israel is slated to release 1,027 prisoners for Schalit, now 25, who had been held in Gaza since he was captured more than five years ago by Palestinian militants in a cross-border raid. Before dawn, convoys of white vans and trucks transported hundreds of Palestinian prisoners to the locations in the West Bank and on the Israel-Egypt border where they were to be freed. In Gaza, the Red Cross confirmed that the prisoners slated for release had arrived at the nearby border crossing. The exchange, negotiated through Egyptian mediators because Israel and Hamas will not talk directly to each other, is going ahead despite criticism and court appeals in Israel against the release of the prisoners. Nearly 300 of them were serving lengthy sentences for involvement in deadly attacks. The exchange involves a delicate series of staged releases, each one triggering the next. The Red Cross and Egyptian officials are involved in facilitating the movement of prisoners. A Gaza militant leader said the Palestinians were waiting until all 477 prisoners were moved into Palestinian territory before turning Schalit over to the Egyptians. In the meantime, he said armed men would remain with him in Egypt. When Tuesday's exchange is complete, 477 Palestinians held in Israeli jails, including 27 women, will have been released, several of them after decades behind bars. The other 550 are set to be released in two months. Schalit will be brought to an Israeli military base along the Egypt border, where he will be issued a new military uniform and given another medical examination, according to the Israeli military. Schalit will then be flown by helicopter to an air force base in central Israel, where he will meet his parents, as well as Prime Minister Benjamin Netanyahu, the defence minister and military chief of staff.

Mexico opposition may work with criminals

 

Mexican President Felipe Calderon has said politicians in the main opposition party may consider deals with criminals, opening an inflammatory new front in the nation's presidential election campaign. Calderon's blunt remarks about the centrist Institutional Revolutionary Party (PRI), which is favored to win the July 1, 2012 election, are unusual in a country where the president is expected to stay largely aloof from party politics. Centering on the policy that has dominated his presidency -- an aggressive army-led crackdown on drug cartels -- his comments risk polarizing opinion on how to restore stability to Mexico, where the drug war has killed 44,000 in five years. Leading members of Calderon's conservative National Action Party (PAN), other PRI opponents and political analysts have accused the once-dominant party of making secret deals with drug cartels in the past to keep the peace in Mexico. In a weekend New York Times interview published a day after he said a state governed by the PRI had been left in the hands of a drug gang, Calderon was asked whether the opposition party might pursue a corrupt relationship with organized crime. "There are many in the PRI who think the deals of the past would work now. I don't see what deal could be done, but that is the mentality many of them have," said Calderon, whom the law prevents from seeking a second six-year term. Calderon's office later issued a statement saying the newspaper had expressly noted when posing the question that the PRI had a reputation for making deals with organized crime. His office underlined that the president recognized many in the PRI did not favor this approach and supported his policy. Analysts say Calderon is bitterly opposed to the PRI, which dominated Mexico for seven decades until PAN won the presidency in 2000 under its candidate Vicente Fox. The tide of drug war killings has eroded support for the PAN, and the PRI's main hopeful, the telegenic former governor of the State of Mexico, Enrique Pena Nieto, has around twice the support of his nearest rival. NAMING NAMES The PRI has attacked Calderon for the spiraling death toll, and analysts said the president's remarks were tailored for the election, putting in jeopardy any hope of passing many pending reforms that have been stalled in Congress. "This is really serious," Javier Oliva, a political scientist at the National Autonomous University of Mexico (UNAM), said of Calderon's comments about the PRI. "The president has an obligation to prove this now. To name names." "The president is regressing into a negative stance of being president of the PAN, and not president of Mexico." The Times noted that Calderon "looked disgusted at the mere mention of the PRI" during the interview. The statement issued by his office said Calderon mentioned the ex-PRI governor of Nuevo Leon state, Socrates Rizzo, as someone who had pointed to the existence of such pacts. Rizzo's comments, which were reported early this year, were rejected by leading PRI figures at the time. The PRI's national chairman, Humberto Moreira, told El Universal's Sunday newspaper his party did not want to make deals with organized crime and that Calderon was trying to exploit the issue of public security for political ends.

Mexico’s military says soldiers freed 61 men being held captive by the Zetas drug cartel for use as forced labor

 

Mexico’s military says soldiers freed 61 men being held captive by the Zetas drug cartel for use as forced labor. The army says the men were found guarded by three Zetas kidnappers in a safe house in the border city of Piedras Negras on Saturday. Soldiers made the discovery during a security sweep in the area that also turned up an abandoned truck filled with 6 tons of marijuana. Loading... Comments Weigh InCorrections? In a press conference Sunday, Gen. Luis Crescencio Sandoval Gonzalez said one of the captives was from Honduras and others were from various parts of Mexico. He said the three kidnappers were arrested. Piedras Negras sits across the border from Eagle Pass, Texas, in the Mexican state of Coahuila, which has been the scene of ongoing battles between drug gangs.

Four former members of the Colombian army's special forces are training members of Los Zetas

 

Four former members of the Colombian army's special forces are training members of Los Zetas, considered Mexico's most violent drug cartel, the Bogota daily El Tiempo reported Sunday. The retired soldiers - two captains and two sergeants - served time in Colombia for human rights violations. "The identities of the soldiers have not been released because charges have not been filed against them," El Tiempo said, adding that the U.S. Drug Enforcement Administration, Mexican police and Colombian police were tracking their movements.

You shoot a police officer, you’re going to get shot back at

 

A little before dawn on a sticky summer night in June, one of Texas Gov. Rick Perry’s Ranger Reconnaissance Teams was running a clandestine operation along the Rio Grande when its surveillance squad came across a Dodge Durango pickup truck loaded with bales of Mexican marijuana. Bad idea, messing with Texas. 37 Comments Weigh InCorrections? inShare Gallery  The Texas governor is seeking the 2012 GOP presidential nomination. Gallery  Mexico's ongoing drug war continues to claim lives and disrupt order in the country. More On This Story Read more on PostPolitics.com Rick Perry a hawk on Texas border security Perry and Romney dominate GOP fundraising Cain defends ‘9-9-9’ tax overhaul plan View all Items in this Story The lawmen chased the truck along the river, with a Texas Department of Public Safety helicopter swooping overhead and Texas game wardens roaring down the Rio Grande in boats, state authorities said. In minutes, the traffickers had ditched the truck in the muddy water and were rafting the dope back to Mexico. Then the shooting started. Alone among his Republican rivals running for president, the Texas governor has a small army at his disposal. Over the past three years, he has deployed it along his southern flank in a secretive, military-style campaign that his supporters deem absolutely necessary and successful and that his critics call an overzealous, expensive and mostly ineffective political stunt. A hawk when it comes to Mexican cartels, Perry said in New Hampshire this month that as president he would consider sending U.S. troops into Mexico to combat drug violence there and stop it from spilling into the United States. The June incident along the Rio Grande was typical of Perry’s border security campaign: a lot of swagger, with mixed results. The initial news release said the Texas Rangers team came “under heavy fire” by members of the Gulf cartel, though officials later said it was “four to six shots.” The Texas Rangers and their multi-agency task force, which included U.S. Border Patrol agents, returned fire — big time — lighting up the Mexican riverbank with 300 rounds. “You shoot a police officer, you’re going to get shot back at,” said Steven McCraw, Perry’s homeland security chief and director of the Texas Department of Public Safety.

Frightening 'Drug Threat Assessment' for the USA and Mexico

 

The National Drug Intelligence Center, a branch of the U.S. Department of Justice, recently released a document entitled the "National Drug Threat Assessment 2011."  You can read the document online here.  The document paints a gloomy picture for both the U.S. and Mexico. The Assessment's Executive Summary begins: "The illicit trafficking and abuse of drugs present a challenging, dynamic threat to the United States.  Overall demand is rising, largely supplied by illicit drugs smuggled to U.S. markets by major transnational criminal organizations (TCOs).  Changing conditions continue to alter patterns in drug production, trafficking, and abuse. Traffickers are responding to government counterdrug efforts by modifying their interrelationships, altering drug production levels, and adjusting their trafficking routes and methods. Major Mexican-based TCOs continue to solidify their dominance over the wholesale illicit drug trade as they control the movement of most of the foreign-produced drug supply across the U.S. Southwest Border. "The estimated economic cost of illicit drug use to society for 2007 was more than $193 billion...." One of the contributing factors is the high demand for drugs in the United States. This high demand finances the drug cartels, allowing them to spend more and expand their operations.   According to the 2011 Assessment, that demand is growing. The document reports that "The abuse of several major illicit drugs, including heroin, marijuana, and methamphetamine, appears to be increasing, especially among the young."  Elsewhere it says that "Overall drug availability is increasing."  One exception to this tendency is cocaine - its availability and use are down.   The document states that "The Southwest Border remains the primary gateway for moving illicit drugs into the United States.  Most illicit drugs available in the United States are smuggled overland across the Southwest Border...."  The Southwest Border is comprised of the southern borders of California, Arizona, New Mexico and Texas with Mexico. Then there is the tunneling: "Despite enhanced detection efforts and better countermeasures, Mexican drug traffickers will continue to build tunnels under the Southwest Border." In the U.S., Mexican cartels have cornered the market.  The 2011 Assessment states that "Mexican-based TCOs [transnational crime organizations] dominate the supply, trafficking, and wholesale distribution of most illicit drugs in the United States."  Elsewhere, it predicts that "Major Mexican-based TCOs and their associates are solidifying their dominance of the U.S. wholesale drug trade and will maintain their reign for the foreseeable future." The Mexican cartels are active in many urban areas.  The Assessment calculates that "Mexican-based TCOs were operating in more than a thousand U.S. cities during 2009 and 2010...." And, "Mexican-based trafficking organizations control access to the U.S.-Mexico border, the primary gateway for moving the bulk of illicit drugs into the United States.  The organizations control, simultaneously use, or are competing for control of various smuggling corridors that they use to regulate drug flow across the border. The value they attach to controlling border access is demonstrated by the ferocity with which several rival TCOs are fighting over control of key corridors, or ‘plazas.'" The document says that seven major Mexican drug cartels are supplying the United States, but that "... the Sinaloa Cartel is preeminent - its members traffic all major illicit drugs of abuse, and its extensive distribution network supplies drugs to all regions of the United States." U.S.-based gangs are involved in the distribution north of the border: "The threat posed by gang involvement in drug trafficking is increasing, particularly in the Southwest Region. With gangs already the dominant retail drug suppliers in major and midsized cities, some gang members are solidifying their ties to Mexican TCOs to bolster their involvement in wholesale smuggling, internal distribution, and control of the retail trade." The Assessment reports that "Criminal gangs - that is street, prison, and outlaw motorcycle gangs - remain in control of most of the retail distribution of drugs throughout much of the United States, particularly in major and midsize cities." The document predicts that "Collaboration between U.S. gangs and Mexican-based TCOs will continue to increase, facilitating wholesale drug trafficking into and within the United States.  Most collaboration occurs in cities along the U.S.-Mexico border, although some occurs in other regions of the country. Some U.S.-based gangs in the Southwest Border region also operate in Mexico, facilitating the smuggling of illicit drugs across the border." The 2011 Assessment paints a gloomy picture of the drug trafficking situation, drug cartels, and the safety and security of both the U.S. and Mexico.

RBS staff told to pay for their own Christmas party

 

Another day, another downgrade. Reduced to surviving on two pints of lager and pack of crisps at recent Christmas parties, misery was heaped on Royal Bank of Scotland's highly-paid investment bankers on Friday as they were told that they would have to fund this year's bash entirely out of their own pocket.

HMRC clamps down on Swiss account holders

 

6,000 Britons who hold money in the Swiss arm of HSBC will soon receive a letter telling them that they need to own up to unpaid tax. The bank is acting on information received last year under a tax treaty. This revealed that more than 6,000 individuals, companies, trusts and other bodies held accounts and investments with HSBC Geneva. HMRC has already begun criminal and serious fraud investigations into more than 500 individuals and organisations holding these accounts. HMRC will shortly be writing to those who have not yet come forward, or are not under investigation. They will be offered a chance to contact HMRC and disclose all their tax liabilities, HMRC said. Fines of up to 200 per cent of any tax may, in certain circumstances, be imposed on people not coming forwards during this window for disclosure. "This is not an amnesty. There are no special rates of penalty or interest for those who come forward voluntarily," said HMRC's Dave Hartnett. "This is an opportunity for those who have made errors in past returns to correct them. The net is closing on offshore evaders. Don't wait for HMRC to contact you."

BRITS ABROAD

T

Rich Brits plot escape to France

 

 wealthy Britons are planning to flee what they believe to be an over-taxed and crime-ridden UK, with France the most favoured destination, according to a survey published by British bank Lloyds TSB. The survey, published on Monday, found that 17 percent of those with more than £250,000 ($391,025) in savings and investments wanted to move abroad in the next two years, up from 14 percent six months earlier. The most popular destination for the rich exiles was France (21 percent), followed by Spain (15 percent) and the US (11 percent).  Three-quarters of those questioned (73 percent) thought that crime was a bigger problem in Britain than other developed countries. "Sadly, it seems August's riots, tax increases and a rising cost of living have cast a pall over life in the UK for some wealthy people," said Nicholas Boys-Smith, managing director of Lloyds TSB International Wealth in a statement. "It may reignite fears of a 'wealth drain' from our economy as rich people seek pastures new," he said. 42 percent of those questioned named tax as a reason for leaving, up from 35 percent six months ago. Cost of living was a factor for 52 percent, up from 31 percent. Research in January 2011 suggested that 4.6 percent of the UK population have over £250,000 in savings and investments, which equals around 2.8 million people.

A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart

Illustration by Matt Kenyon

What if it falls apart? For all my adult life, I have been what in England is called a pro-European or Europhile. For most of that time, European history has been going our way. Now it may be on the turn. Soon, it could be heading the Eurosceptics' way. What then?

Over the last half-century, the institutional organisation of Europe has progressed from a common market of six west European states to a broader and deeper union of 500 million individual Europeans and 27 countries, from Portugal to Estonia and Finland to Greece; 17 of them share a single currency, the euro. There are no border controls between 25 European countries in the Schengen area. Enveloping it all is the fragile skin of the European convention on human rights (now under facile attack from some British Conservatives) which allows any individual resident of no less than 47 countries, including Russia, to contest a violation of their inalienable human rights all the way to a European court of human rights in Strasbourg.

Never has Europe been so united as this. Never have more of its people been more free. Never before have most European countries been democracies, joined as equal members in the same economic, political and security community. Our continent still has a grotesque amount of poverty, injustice, intolerance and outright persecution. (Try living as a Roma or Sinti in eastern Europe for a taste of all that.) I prettify nothing. But – to adapt a famous remark about democracy by that great pro-European British conservative, Winston Churchill – I do say that this is the worst possible Europe, apart from all the other Europes that have been tried from time to time.

Now all this is under threat. A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart, bringing bitter recriminations and lasting divisions. More fundamentally, the past emotional motivators and political engines of European unification are no longer there. The peoples of Germany, the Netherlands and other core countries of the European Union are loth to take steps of further integration which many of the creators of monetary union thought would be necessary to sustain it.

I blame politicians like Angela Merkel for not showing more leadership in this respect, but such leadership would involve a heroic, uphill struggle to persuade reluctant publics in what are still (contrary to what Eurosceptics claim) largely sovereign national democracies. If these were not sovereign national democracies, the whole financial world – from Washington to Beijing – would not this week have been waiting with bated breath on the vote of one small party in the parliament of Slovakia.

I note in passing that many of the current difficulties of the eurozone were predicted back in the 1990s, and I was a sceptic about monetary union at that time. This is what I wrote in 1998: "The rationalist, functionalist, perfectionist attempt to 'make Europe' or 'complete Europe' through a hard core built around a rapid monetary union could well end up achieving the opposite of the desired effect. One can all too plausibly argue that what we are likely to witness in the next five to 10 years is the writing of another entry for [Arnold] Toynbee's index [to his A Study of History], under 'Europe, unification of, failure of attempts at'." But I am not now going to hide behind that testament to my own earlier scepticism about one element of a larger project.

As a pro-European, I stand by the whole project, warts and all. I recently contributed to an appeal – which you too can sign – arguing that the eurozone can only be saved by further fiscal integration and a strategy for growth. Remarkably, even the Eurosceptic prime minister David Cameron recently told the Financial Times that Germany and France need to fire a "big bazooka" to convince financial markets and hence preserve the eurozone. That is a bit like the Duke of Wellington wishing Napoleon success in consolidating his continental empire – but extraordinary times do produce such delicious moments.

Beyond this, however, I'm not going to add a single word to the 537 newspaper columns you have already read explaining how the eurozone must and can, or must not and can not, be saved. You decide which economic commentator you believe.

Instead, I want to ask what happens if the eurozone does fail, one way or another – and that failure begins a much larger process of gradual disintegration. Suppose that the EU in 2030 has become something like the Holy Roman Empire in, say, 1730: still extant on paper, but more origami than political reality. What then?

For us pro-Europeans, what happens then will be, first of all, a paradoxical kind of liberation. Rather like the supporters of a long-term incumbent government, for decades now we have felt some obligation to defend the existing state of affairs, with all its obvious flaws. Eurosceptics, by contrast, have enjoyed the glorious irresponsibility of opposition – and, heaven knows, the Brussels institutions furnish endless easy targets for the sceptic and the satirist.

Now the boot will be on the other foot. For a few years, like an incoming government, Eurosceptics will be able to blame current problems on the preceding regime (overhasty monetary union led to German-Greek loathing, etc), but that only lasts so long. Sooner or later it will become clear that it is their kind of Europe we are living in, not mine.

More German travelers have been using foreign airports since a flight tax was imposed early this year.

 

 

Consider two small airports in the middle or Europe. At Maastricht Aachen Airport, business is booming thanks to an influx of German passengers who are fleeing a national aviation tax introduced on January 1, 2011. Meanwhile, just 80 kilometers across the border, Germany's Weeze Airport has been steadily losing customers.

A few years ago, things were exactly the opposite. The Netherlands had its own, yearlong experiment with an aviation tax, but revoked it in July 2009 after it saw Dutch hubs like Maastricht Aachen Airport lose passengers to rivals in neighboring countries, including Germany.

The levy cost Dutch airports, airlines, and related businesses between 1.2 and 1.3 million euros in lost revenue, according to a study by Amsterdam Aviation Economics, a research institute affiliated with the University of Amsterdam.

Hans van Mierlo, a professor of public finance at the University of Maastricht, said the abundance of transportation options in Europe means travelers can and will seek out alternatives whenever one country unilaterally imposes an air passenger tax.

"The [Dutch] crowd went to Germany; now the German crowd comes to us," he told Deutsche Welle. "I am surprised that the German government didn't learn from the Dutch failure."

Maastricht-Aachen Airport may be small, but traffic is growing rapidlyHefty rates

The German aviation tax runs at a rate of eight euros per one-way flight within Europe, 25 euros for medium-haul services to the Middle East and Sub-Saharan Africa, and 45 euros for long-haul flights. The tariff only applies to flights originating in Germany. The German Finance Ministry reported the duty raised 434 million euros in revenues in the first half of 2011.

However, for travelers, the tax can double the total cost of a bargain ticket. That has driven Irish budget carrier Ryanair to cancel some of its services from Weeze Airport and add flights at Maastricht. Meanwhile, rival airline Germanwings has launched a service linking Maastricht to Berlin 12 times per week.

Those moves helped drive Maastricht Aachen Airport's whopping 70 percent increase in passengers so far this year. That is quite a comeback from the time of the Dutch aviation tax, when it lost 25 percent of its customers.

Maastricht's airport has new routes to Bucharest, Tenerife, and other spotsAmong the new clientele is Ne Pham from Jülich, Germany. She told Deutsche Welle that she used to fly out of Cologne or Dusseldorf to destinations like Italy, the United States and her native Vietnam.

"It's cheaper to fly from [Maastricht] than from Germany," she said. "It's easy to find, has lots of parking spaces, and a very fast check-in. It's small but nice."

Maastricht makeover

To accommodate new passengers, Maastricht Aachen Airport has renovated its main waiting area and sole restaurant. A new bus line runs from Cologne directly to the Dutch airport, where travelers are greeted by a row of flags from seven European countries. Airport staff members are required to speak German and English in addition to Dutch, and a number of them speak French as well.

Marion Schramm and her husband, from Geilenkirchen, Germany, echoed Pham's reasons for choosing Maastricht Aachen Airport. But they were not as impressed by the small airport's recent makeover.

"It's obviously dinky," Marion Schramm told Deutsche Welle, "You see everything right away. But it's a lot cheaper than Germany at the moment."

Customers have mixed reviews for the small Dutch airport's facilities

Weeze's woes

The German Airport Association, which represents German air hubs, has called for an immediate end to the national flight tax. It reported a tepid growth rate of 3.2 percent at airports throughout the country this July, compared with the same month last year.

Weeze Airport, near Dusseldorf, had 22.8 percent fewer customers in the same time period. Ludger van Bebber, the airport's managing director, said many of the hub's clients used to come from the Netherlands.

"The aviation tax destroys the level playing field for us," he told Deutsche Welle. "That is the main issue we have here at Weeze."

Meanwhile, Berlin's two hubs are seeing travelers hop across the border to nearby Polish airports. And people in Munich do not have to drive far to reach a number of alternative airports in Austria and the Czech Republic.

The chairman of the Maastricht airport's board is planning for growth to continueDutch chairman confident

While the German Finance Ministry has denied recent media reports that it might lower the aviation tax rates, the ministry is scheduled to evaluate the levy's effects on small and medium-sized airports in June 2012.

The chairman of Maastricht Aachen Airport, Jan Tindemans, said he is not worried about his business in the short term - even if Berlin ends up decreasing or revoking the tax.

He told Deutsche Welle that winning back market share in the wake of the Dutch tax experiment was very difficult. He does not expect things to be any easier for German hubs.

"No bakery wants its customers to go for one or two times to another bakery, because they always think [the customers] will stay there," he said. "There will be some people who will go back, but I don't think there will be much of an effect."

Tindemans said Maastricht Aachen Airport is seeking to add more airlines and destinations to its roster. He added that his airport could double annual traffic to almost one million passengers over the coming years if economic conditions remain stable.

Tanning beds may be even riskier than thought

 

New research published online Oct. 6 in the Journal of Investigative Dermatology suggests that the main type of ultraviolet rays used in tanning beds -- UVA1 -- may penetrate to a deep layer of skin that is most vulnerable to the cancer-causing changes caused by UV rays. The new study comes as the U.S. Food and Drug Administration considers banning the use of tanning beds among children under 18. The American Academy of Pediatrics is on record that it supports such a ban. In the study, 12 volunteers were exposed to UVA1 and UVB rays on their buttocks. (One difference in the waves is length: UVB waves are shorter.) The UVA1 was more damaging to the skin's basal layer then the UVB light. The UVA1 induced a type of lesion called thymine dimers on the deeper basal layers of the skin. UVB radiation caused more of these lesions, but they did not go as deep, and thus may be less likely to cause the changes linked to skin cancers. "The doses we used were comparable for erythema -- sunburn -- for UVA and UVB. That would be roughly equivalent to the doses needed for tanning in each spectrum," said study co-author Antony R. Young, a professor at the St. John's Institute of Dermatology at King's College School of Medicine in London. "Indoor tanning is like smoking for your skin," said Dr. Doris Day, a dermatologist at Lenox Hill Hospital in New York City. "It's the single worst thing you can do in terms of skin cancer and premature aging." Many indoor tanning salons advertise that tanning beds can help boost the body's production of vitamin D, known as the sunshine vitamin because skin makes it when exposed to the sun's rays. "This is nonsense and an excuse," Day said. "We know people burn in tanning beds and that UVA and UVB are toxic." Teens are particularly vulnerable, she said. "They are immortal in their mind, and skin cancer and aging seem a long ways away." Melanoma, a potentially fatal form of skin cancer, "is not an old person's disease," she said. The new study provides "a little bit more muscle in helping to warn people about the dangers of tanning, but an FDA ban is what we need," she added. "I do think there should be legislation on sunbed use under 18 years of age," said Young, who added that such use is already prohibited in England. John Overstreet, executive director of the Indoor Tanning Association, a Washington, D.C.-based trade group representing the industry, said that if there was science to back up many of these claims, the FDA would have acted by now. The agency has been mulling these claims since March 2010, he noted. What's more, the new study is about ultraviolet radiation, not tanning beds, he said. "Tanning beds have the same ratio of UV waves as the sun. UVA-1 is the primary wave length emitted by the sun, too," he said. "The sun and indoor tanning pose the same risks and benefits if you don't burn. There is no science that shows non-burning exposure to sun or a sun lamp causes cancer."

Legionnaires' disease caught by holidaymakers

 

Nine Britons have been struck down by ­Legionnaires’ disease after visiting Corfu. The Health Protection Agency is investigating after the tourists to the Greek island, aged from 39 to 79, fell ill since August. However, the HPA said the possibility of a UK-source had not been ruled out.Flu-like symptoms of the disease can lead to severe pneumonia or even death. It is treated with antibiotics. Legionnaires’ can be spread through water droplets from taps or air conditioning but not from person-to-person. Professor Nick Phin, of the HPA, said: “People travelling to Corfu should be aware of this potential risk, however we are not suggesting they change their holiday plans.”

death's-head hawk moth is a harbinger of pestilence and death.

Death’s-head hawk moth: spotted in England. Photograph: Butterfly Conservation/PA

As the favoured signature of the serial killer in The Silence of the Lambs, the death's-head hawk moth is a harbinger of pestilence and death. But the benign sunshine and warm southerly winds of an Indian summer have brought the rare moth flying to our shores.

The death's-head, a forbiddingly charismatic insect with a distinctive skull pattern on its thorax, has been sighted along the south coast at Arne, Dorset, and in Plymouth, Devon, in what is proving to be a vintage autumn for exotic migratory moths.

Most exciting for Britain's army of amateur moth recorders is the largest influx of the rare flame brocade moth for 130 years, with lepidopteristssuspecting that the purplish-brown moth has established a breeding colony at an undisclosed location in Sussex.

Michael Blencowe, Butterfly Conservation's officer for Sussex, and a friend, Graeme Lyons, first discovered the flame brocade when one turned up in a back garden last weekend.

"I'd never seen one of these moths before so I grabbed my net and went off to find out if there were any others about at a suitable site nearby," said Blencowe. "I saw 10 that night and there have been recordings of 20 or more there every night since."

This has been the best season for migratory moths for more than five years, according to Butterfly Conservation. Other species lured by the Indian summer include the distinctive crimson speckled, the dainty vestalmoth and Spoladea recurvalis, an extremely rare tropical species.

Before 2006 there had been just 19 records of Spoladea recurvalis in Britain, with 19 recorded that year. More than 20 have been recorded so far this autumn in Sussex, Dorset, Cornwall, Cumbria and the Isle of Man, ushered into the country by southerly winds.

Usually only single figures of flame brocades, which is more commonly found in France and Spain, turn up in the UK each autumn. Mark Parsons, head of moth conservation for Butterfly Conservation, said: "This moth appears to have been making an attempt to recolonise these shores, possibly as a result of more favourable overall weather conditions through climate change."

The death's-head hawk moth is the largest moth to fly in Britain and has the ability to fly into beehives in search of honey without being stung. If handled, it can emit a loud squeak, which terrified medieval Europeans. In Poland, where the moth was called the wandering death-bird, its cries were likened to those of a grief-stricken child.

It has been a shorthand for horror ever since: given an honourable mention in Bram Stoker's Dracula, more recently its pupae were left in the mouths of victims by the serial killer in The Silence of the Lambs.

Mexican forces have arrested a man they say is a key figure in the country's most powerful drugs cartel.

 

Noel Salgueiro Nevarez is accused of running the Sinaloa cartel's operations in the northern state of Chihuahua, where drug violence is rampant.

Defence officials said his arrest would seriously weaken the cartel in Mexico and abroad.

The arrest was made on the same day as that of Martin Rosales Magana, who is accused of leading the La Familia gang.

The army said Mr Salgueiro Nevarez was seized in a carefully planned military operation, without a shot being fired.

Defence Ministry spokesman Ricardo Trevilla Trejo said Noel Salgueiro Nevarez was behind much of the extreme violence which has plagued Ciudad Juarez, Mexico's murder capital.

He said the suspect, also known as El Flaco (The Skinny One), led a gang of hitmen who extorted local businessmen, kidnapped for ransom, and tortured and killed members of a rival gang, the Juarez cartel.

'Criminal career'

Continue reading the main story

Analysis

Ignacio de los ReyesBBC Mundo, Mexico City

The Sinaloa Cartel controls the production of large quantities of heroin, marijuana, and methamphetamine (in the US) and boasts an extensive network of associates to facilitate its US trafficking operations, US officials say.

On Saturday, Texas Governor Rick Perry said he would even consider sending US troops into Mexico to combat drug-related violence and "keep the cartels off the border".

This is why the arrest of "The Skinny One" could be a severe blow to the Sinaloa cartel activity both sides of the fence.

It is also a public relations boost for Mexican President Felipe Calderon at home and in the US, amid growing criticism of his government's strategy to fight criminals and the drug trafficking.

Yet, the Sinaloa Cartel leader is still free. Joaquin "The Shorty" Guzman escaped from a maximum security prison in 2001, embarrassing the Mexican government.

Since then, he's become the number one target with a $3m reward for his capture.

The security forces say the bitter war between the two gangs was the trigger for most of the 3,000 killings in Ciudad Juarez last year.

Prosecutors said Mr Salgueiro Nevarez started his criminal career 15 years ago, producing marijuana for the Sinaloa cartel.

They said his gang had been exporting up to 15 tonnes of marijuana and two tonnes of cocaine per month to the United States.

The government had offered a three-million-peso ($220,000; £130,000) reward for information leading to his capture.

Security officials said his arrest, in the city of Culiacan in northwestern Sinaloa state, was a major blow to the Sinaloa cartel and its leader, Joaquin "Shorty" Guzman.

Mr Guzman, 54, is Mexico's most wanted man and thought to be one of the country's richest.

Two years ago, he made Forbes magazine's list of the 67 World's Most Powerful People. At number 41, he was just below Iran's Supreme Leader Ayatollah Ali Khamenei.

Crumbling cartel

Mr Salgueiro Nevarez's arrest was announced at the same time as that of another top figure in the Mexican drugs trade.

Police say Martin Rosales Magana lead the remnants of the La Familia cartel

Martin Rosales Magana, 47, was seized in Mexico state on Tuesday. Police say he is one of the founders of the once-powerful La Familia cartel.

Until the beginning of this year, La Familia ran much of the methamphetamine trade in Mexico.

It claimed to protect local communities and promote family values, but also engaged in gruesome violence.

The security forces say it has been almost entirely dismantled, with its top leaders either in jail or dead.

They say Mr Rosales Magana lead a number of small cells still loyal to the cartel, which had holed themselves up in a rural area between Michoacan and Mexico state.

At a news conference, federal police counter-narcotics chief Ramon Pequeno described how La Familia splintered after the security forces killed the cartel's then-leader Nazario Moreno in December 2010.

He said part of the gang set up a rival cartel, which they named Knights Templar, and which quickly took over many of the methamphetamine labs in the west and south-west of the country.

Mr Pequeno said Mr Rosales Magana and those loyal to him tried to regain control of the drugs trade in Michoacan state by forging an alliance with their long-time rivals, the Zetas cartel.

He told reporters how "they met with the Zetas to ask for operational assistance, weapons and salaries [for gunmen] and expenses money, in order to recoup important cities held by the Knights Templar".

However, according to police, the alliance soon faltered because Mr Rosales Magane no longer had access to the precursor chemicals needed to make methamphetamine, their main source of income.

Mr Pequeno said with La Familia severely weakened, police would now focus their attention on taking down the Knights Templar.

Mexico Arrests Key Member Of Sinaloa Drug Cartel

 

Mexican security forces have arrested one of the top figures of the Sinaloa drug cartel in an operation carried out in the country's north, officials said on Wednesday. They said Noel Salgueiro Nevarez was arrested on Tuesday in Culiacan, capital of the north-western state of Sinaloa, in a carefully planned operation. He was captured "without any shots being fired," they added. Nevarez, alias El Flaco or The Skinny One, was the leader of a gang of hit-men working for the Sinaloa cartel led by Joaquin "El Chapo" (Shorty) Guzman. He is accused of running the cartel's operations in the northern state of Chihuahua and involvement in kidnappings, torture, extortion and murders. Nevarez is said to be a close associate of Guzman. Mexican officials say his arrest was a major blow to Guzman and insist that it would weaken the operations of the cartel in Mexico and abroad. The Mexican government had offered a reward of about $220,000 for information leading to the capture of Nevarez. The Sinaloa cartel, based in Mexico's Pacific coast, is currently one of the most powerful organized criminal gangs in the Americas. Cartel leader Guzman has been on the run since he escaped from a Mexican prison ten years ago. The United States had declared a $5 million reward for information leading to his capture. The Sinaloa cartel is presently engaged in a fierce turf battle with the Juarez cartel led by Vicente Carrillo Fuentes for the control of lucrative smuggling routes to the U.S. The two cartels are blamed for most of the recent drug-related violence in Chihuahua and other northern states. The Mexican government says that more than 34,600 people have died in drug-related violence in the country since President Felipe Calderon launched an offensive against drug gangs after taking office in December 2006. Besides fighting drug cartels, Calderon has deployed thousands of troops across the country to check drug-related violence and launched a massive anti-corruption drive named 'Operation Clean-up' to identify and punish public servants having links with drug cartels.

Police warn they may not be able to afford Tesco's £3m riot compensation bill

 

In total, the retailer has asked for nearly £3m in compensation from police forces around the country, following the riots that tore through some high streets in August. It is likely that this is the biggest request from a single retailer. The company is claiming under the Riot Damages Act, a piece of Victorian legislation that allows businesses and individuals affected by riot damage to claim directly from the police, rather than their own insurer. In the immediate aftermath of the civil disturbances, the British Retail Consortium urged small retailers to put in their claims to make sure their businesses were not harmed. However, the Greater Manchester Police Authority, which has been hit with 280 claims totalling £4.4m, has criticised Tesco for using the Act, saying there was no guarantee the police force would be able to afford all of the compensation. The force faces £134m budget cuts in the next five years. It added that J Sainsbury was one of a number of large companies that had chosen not to submit any compensation claims. Tesco has submitted more than 20 claims for compensation to Manchester police, including one for £40-worth of looted stock.

Brussels threatens to sue Britain to let in 'benefit tourists'

 

Ministers fear the move could leave taxpayers handing out as much as £2.5  billion to EU nationals, including out-of-work “benefit tourists”, a new cost that could wreck Coalition plans for welfare reform. The commission’s threat, on the eve of the Conservative Party conference, has raised the political temperature on Europe still further. In an outspoken attack today, Iain Duncan Smith, the Work and Pensions Secretary, says the commission’s move is part of a “wider movement” by the “unelected and unaccountable” European authorities to extend their power over the UK. “This kind of land grab from the EU has the potential to cause mayhem to nation states, and we will fight it,” he writes in The Daily Telegraph. The commission is objecting to Britain’s rules on welfare, claiming they discriminate unfairly against foreigners. To claim benefits in Britain, EU nationals must pass a “right to reside” test. The commission says the test is too tough, and wants Britain to apply more generous EU-wide rules.

Legal warning to UK over benefits for EU nationals

 

The European Commission has threatened legal action against the UK, saying a test of eligibility for benefits discriminates against foreigners. It says it is easier for UK citizens to prove their "right to reside" - a test imposed by the UK for certain benefits - than EU nationals. The commission says it may refer the case to the European Court of Justice. Ministers say it is a "fundamental challenge" to the UK's right to decide its own social security arrangements. The Commission says it has been in talks with the UK for several years over the issue and is responding to a "huge number" of complaints from EU citizens living in the UK. Residence tests On Thursday it announced that it was giving the UK two months to explain how it was going to bring its legislation into line with EU law - prompting UK Work and Pensions Secretary Iain Duncan Smith to accuse it of a "land grab" and to pledge to fight it. A range of entitlements - including child benefit, child tax credit, state pension credit, jobseekers' allowance and employment and support allowance - are given only to those with a "right to reside" in the UK. Continue reading the main story WHAT BENEFITS ARE INVOLVED Child benefit Child tax credit State pension credit Jobseekers' allowance The Commission says there are already an EU-wide "habitual residence" rules which are strict enough and the UK is imposing an additional test, which indirectly discriminates against non-UK EU nationals. While UK nationals can easily prove their "right to reside" based on their UK citizenship, other EU nationals have their applications heard on a case-by-case basis, which it says breaches EU social security co-ordination rules giving all citizens equal rights. The Commission gives the example of a woman who moved to the UK and worked from April 2007 to April 2009 when she was made redundant. It says she had paid taxes and National Insurance but was refused claims for jobseekers' allowance. 'Very sound' It says UK citizens in other EU states do not have to meet similar tests and get non-contributory benefits. Laszlo Andor, Commissioner for Employment and Social Affairs, said the EU's legal position was "very sound". Continue reading the main story “ Start Quote We are talking here.. about people who are inactive, people who are looking to come to the UK who are not going to work here” Chris Grayling Employment minister "The EU insists on the right of mobile workers to move from one country to another and, in certain places, they are entitled to benefits," he told the BBC. "We want to protect the rights of all EU citizens." Most people moving abroad already had offers of work or were looking for it, he said, rather than primarily wanting to take advantage of more generous benefits. "It may happen that some of them do not a find a job immediately. It is very important that, in these cases, the rights should be respected." He added that some people might choose to move to a country where benefits were higher but "since we have a European Labour market we have to accept this as a fact". But UK ministers fear taxpayers could be forced into handing out more than £2bn to EU nationals - including so-called "benefits tourists" - if the UK has to comply. 'Difference of opinion' Employment minister Chris Grayling, who met EU officials this week to discuss the issue, said there was a "very definite difference of opinion" between the UK and the Commission. "We are talking here, not about active citizens, not about people who are working but people who are inactive, people who are looking to come to the UK who are not going to work here." He said European law was "all over the place at the moment" and the UK had separately been told by the European courts to make disability benefit payments to a British citizen living in Spain. He said 13 EU states had proposed a "comprehensive review" of policy in the area in June and talks were continuing. Nigel Farage, leader of the UK Independence Party, which campaigns for Britain's exit from the EU, said: "It is not discrimination but simply a system to ensure that benefits are only paid to those who are entitled to them."

Rio hit with £500k bill after losing court battle

The England and Manchester United star will now be saddled with paying the estimated £500,000 legal bills incurred by the Sunday Mirror in defence of the lawsuit.

Ferdinand sued the newspaper for misuse of private information after they published details of his 13-year relationship with interior designer Carly Storey, who accepted £16,000 for telling the tale of her liaisons with the defender.

But Mr Justice Nicol dismissed the case at London's high court on Thursday, and refused Ferdinand's legal team permission to appeal.

"Overall, in my judgment, the balancing exercise favours the defendant's right of freedom of expression over the claimant's right of privacy," he said.

The judge was not swayed by Ferdinand's claims that he had not tried to meet Storey after being made England captain, despite claims in the newspaper that he had snuck Storey into the team hotel.

"I did not find this answer persuasive. In his evidence the claimant said that (Fabio) Capello had told him to be professional, not only on the pitch but 'around the hotel'," the judge said.

"In the past, the Claimant (Ferdinand) had not behaved in a professional manner around the hotels into which he had tried to sneak Ms Storey.

"Whether or not he had done that in the few weeks since he had been made the permanent captain of England, his relative recent past failings could legitimately be used to call into question his suitability for the role."

Former England captain Ferdinand, who has three children with wife Rebecca, had told the judge at an earlier hearing that, "I do not see why I should not be entitled to a private life just because I am a famous footballer."

Sunday Mirror editor Tina Weaver hailed the judge's decision.

"The Sunday Mirror is very pleased that the court has rejected Rio Ferdinand's privacy claim," she said.

"The judge found that there was a justified public interest in reporting the off-pitch behaviour of the then England captain and discussion of his suitability for such an important and ambassadorial role representing the country.

"We are pleased the judge ruled that Mr Ferdinand had perpetuated a misleading public image and the Sunday Mirror was entitled to correct this impression.

"There has never been greater scrutiny of the media than now, and we applaud this ruling in recognising the important role a free press has to play in a democratic society."

Paramedics Who Tried To Save Singer's Life Give Evidence

 

Alberto Alvarez was in charge of back stage during Jackson's final rehearsal on June 24, 2009. He described Jackson as "happy and in good spirits" during the performance. "He was doing very well for the most part," he told the Los Angeles court. He explained that he later drove Jackson back to his rented Holmby Hills home and saw Dr Murray's car parked there. He said the last time he saw Jackson alive was when he said "good night" to the singer. Mr Alvarez was the first person who went into Jackson's bedroom after Dr Murray telephoned for help as he was trying to resuscitate the singer. He said Jackson was lying on his back, with his hands extended out to his side, and his eyes and mouth open. "When I came into the room, Dr Murray said 'Alberto, hurry, we have to get to hospital, we have to get an ambulance'." Jackson's logistics director Alberto Alvarez He then described how Jackson's children Paris and Prince entered the room behind him. "Paris screamed out 'Daddy' and she was crying. "Dr Murray said to me 'Don't let them see their dad like this see'. "I ushered the children out and told them 'Don't worry, we will take care of it, everything is going to be OK'." Mr Alvarez asked what had happened, to which Dr Murray replied: "He had a bad reaction". Two paramedics who tried to save Jackson's life are also due to give evidence on day three of the trial. Martin Blount and Richard Senneff are expected to say that Jackson already appeared to be dead when they arrived at his home on June 25, 2009. The court will also hear from another key witness - Jackson's personal chef Kai Chase. Sky's US correspondent Greg Milam, who is at the court, said: "There are fewer demonstrators, fans of Michael Jackson, and supporters of Dr Murray here today - but they are still being very vocal in their support of both sides in the case." On Wednesday, Jackson's security chief revealed how the star's children crumpled in shock, as they saw their apparently dead father being given heart massage in his bedroom. The court also heard that Dr Conrad Murray, accused of involuntary manslaughter over Jackson's death two years ago, asked aides if any of them knew how to do cardiopulmonary resuscitation (CPR). "Paris was on the ground balled up crying, and Prince was standing there, and he just had a real shocked, you know just slowly crying type of look on his face," bodyguard Faheem Muhammad, referring to two of Jackson's three children, said. "I went and gathered them together, and I kind of talked to them for a second, got the nanny... and we walked downstairs and put them in a different location," he said. He was describing the scene after he was called up to the master bedroom of Jackson's rented Los Angeles mansion where the star died after an overdose of a powerful sedative. The defence team for the doctor insists Jackson self-administered other sedatives, prompting the overdose while his physician was outside the bedroom. Dr Murray, 58, faces up to four years in jail if convicted of involuntary manslaughter for administering the overdose of Propofol.

Raids in 7 countries in $200M investment fraud

 

Dutch authorities say raids have been conducted in seven countries in connection with an alleged $200 million investment fraud scheme, and four men have been arrested. The country's financial crime prosecutors say they suspect hundreds of investors were conned into fraudulent investments in U.S. life insurance policies by a firm called Quality Investments BV. Prosecutors said Wednesday four Dutch men have been arrested, two in the Netherlands and one each in Switzerland and Turkey. Raids were also conducted in Spain, Dubai, England and the United States, in which millions of euros in assets were seized in hopes of recovering some money for duped investors.

Spain 'a Top Choice' For Those Thinking Of Moving Abroad

 

Spain has been named among the top five destinations that people would consider moving to if they were going to leave the UK, new research has found. A survey conducted by Post Office International Payments revealed that the European nation, which was the fourth most popular location named in the poll, was a possible choice for ten per cent of those questioned. The firm also pointed out that it was the highest-placed nation where English is not the first language. One of the top reasons given for buying a property in Spain or elsewhere in the world is the chance to have a better quality of life, while other reasons to move included warmer weather, discovering a new culture and the adventure of emigrating. Mortgage provider Conti published figures earlier this month showing that it has received seven per cent more enquiries about relocating to Spain so far in 2011 than last year. Overall, the country accounts for 31 per cent of all queries handled by the organisation, with only France garnering more interest.

Settling in Britain is a privilege not a right

 

THE following is the summary of a speech delivered on September 15, 2011, by Britain’s Immigration Minister Damian Green at the Centre for Policy Studies [see full speech]. The speech is an indicator of the possible policy changes that will come out of the consultation currently underway into the reform of family migration. The consultation opened on July 13, 2011, and will close on October 6, 2011. It is important that as migrants to this country, we take time out to respond to this consultation as judging from Green’s speech it will have far reaching consequences for immigrants . Some of the proposals on the table include the following: # Whilst recognising that marriage is a personal decision, it is argued that it has implications on the wider society and therefore the spouse seeking settlement will be expected to demonstrate that they have integrated into British society. It is proposed to increase the probationary period for a non-EEA spouse or partner to apply for settlement from two to five years. It is argued that, this will allow additional time to integrate into British life and give authorities a longer period in which to test the genuineness of the relationship before permanent residence in the UK is granted on the basis of it. Ministers also believe this will also make the route less attractive to those whose sole purpose is to gain settlement in Britain. It is also argued that extending the probationary period will reduce the burden to the taxpayer by postponing access to non-contributory benefits like income support. # Immediate settlement for adult dependents will be stopped. Currently under paragraph 317 of the immigration rules, a sponsor who is settled in the UK can sponsor adult dependents in certain circumstances. Instead, a probationary period of five years will be introduced before they can apply for settlement. As a result, their in-country application for settlement will be subject to meeting the English language skills requirement. # In fact the English language test is to be extended to all adult family migrants under 65 as well as dependents aged 16 and 17. The justification Green uses for this is the rather shock data that in one year, 2009-10, the Department of Work and Pensions spent £2.6 million on telephone interpreting services and nearly £400,000 on document translation. # The outcome of the consultation is likely to come up with a minimum maintenance threshold. Presently, it has been safe to argue that if the income meets the income support threshold then it demonstrates sufficiently that they can be accommodated and maintained without recourse to public funds. The Migration Advisory Committee has been tasked to come up with a new minimum income threshold for sponsors of dependents for maintenance and accommodation. The new threshold will take into account the number and age of the dependents sponsored. # It looks like third party support is on its way out except in compelling and compassionate circumstances. Presently, it has been possible to show that a third party will assist with the maintenance requirements. But Green argues that it is not easy for the UK Border Agency to verify this. # The dependents of points-based migrants are to face a probationary period increase of two to five years before settlement. # For some time now, there has been an expression of dissatisfaction by the UK Border Agency about the right of appeal in family visit visa matters. It will come as a surprise given what appears to be routine refusals from the Pretoria entry clearance team that a staggering 73% of the family visits applications are granted. Green argues that the tax payer has to foot the bill for the right of appeal where people produce better evidence than they could have produced at the initial application stage. His argument is reinforced by the statics that family visit appeals made up 40% of all immigration appeals and that it cost the taxpayer around £40 million a year. About 63% of the family visits matters are allowed on appeal. The consultation proposes to end the right of appeal and argues that one can submit a new application instead. As I stated above, it is a good idea to read the consultation and respond to it. At first blush, the 77-page consultation document can appear daunting but it does provide a useful insight into where this government intends to take its immigration policy