Floods: UK Insurers Avoid Covering Risky Homes

By Becky Johnson, North of England Correspondent

People whose homes have been devasted by flooding fear they will be unable to get insurance in future as talks between the Government and insurers have so far failed to reach an agreement.

At present insurers are required to provide cover at reasonable rates provided the Government continues to strengthen flood defences, but this agreement - known as the Statement of Principles - is due to expire in June this year.

In St Asaph in North Wales more than 400 homes were deluged when the River Elwy burst its banks last November. So far, the majority of people have still been unable to return to their houses.

James Alcock stands in his kitchen after flood water recedes

John Wynn Jones who is a local councillor and whose own home was flooded told Sky News: "What we are finding is that because people are so concerned about getting insurance, as well as clearing up after the floods themselves, people are actually considering not moving back into their homes.

"They don't want to get back into their properties and then find out they can't get insurance or the premiums are now so high they can't afford it.

"There's one lady who was insured and ... they've told her they won't be able to renew her policy. When she's questioned it, they've told her 'you no longer fulfil our criteria'. It hasn't been explained to her why but she says the only thing that's changed is she has now been flooded.

"Another resident has had to shop around. Her existing premium had been £200 a year and the best deal she can get now is £1,200 a year. Someone else was told they'd only get a policy with a £10,000 excess.

"People are desperate to have the cover but a lot of people are saying they don't have the money to pay so they'll end up living in uninsured properties."

A fireman helps a member of the public in Aberfoyle

Aidan Kerr, head of property at the Association of British Insurers (ABI), said: "We continue discussions with Government on the model we have developed to safeguard the availability and affordability of flood insurance for those at high risk.

"With flooding the biggest natural risk the UK faces, it is important we have consensus on managing the risk going forward, which includes sustained and targeted flood defence investment and sensible planning decisions."

A spokesperson for the Department for Environment, Food and Rural Affairs told Sky News: "We want to get an agreement on insurance that provides a lasting solution and secures affordability and availability of flood insurance for policy holders.

"Constructive negotiations are ongoing and Government is meeting with the ABI regularly."

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KPMG Auditor Charged Over Insider Trading

US officials have charged a former senior partner of accounting giant KPMG over alleged insider trading.

Authorities charged Scott London with five criminal and civil charges over claims he gave a golfing partner non-public information, which was used to make share trades.

Mr London was apparently given part of the profit as cash, a Rolex watch and VIP concert tickets to see rocker Bruce Springsteen.

On Thursday, a federal court judge in Los Angeles released Mr London on $150,000 bail (£100,000) and ordered to hand in his passport.

The charges stem from information about five firms given to a long-term friend, jeweller Bryan Shaw, who recorded some conversations and later gave them to the FBI.

The judge also ordered that the former KPMG auditor was not to make contact with Mr Shaw unless in the company of lawyers.

Mr London's lawyer, Harland Braun, said his client intended to plead guilty when he next appears in court, on May 17.

In exchange for the privileged information, Mr London apparently received a share of the share trading proceeds.

Inside information was given on corporations including footwear firm Skechers and nutritional group Herbalife.

KPMG is one of the so-called Big Four audit firms

"Had my client been asked to give information for cash, he would have said no," Mr Braun said after the hearing.

"This is that grey area, when you talk at the country club. But once you take money, you're dead."

KPMG chief executive John Veihmeyer said his firm will take legal action against Mr London in the near future.

However, he said there was no reason to believe the financial statements of the companies involved are materially misstated.

"We unequivocally condemn his actions, and deeply regret the impact that his violations of trust and the law have had on our clients and our people," Mr Veihmeyer said.

According to prosecutors, Mr Shaw made about $1m (£640,000) trading on the tips and gave Mr London roughly 10% of his profits.

One gift for Mr London was a Rolex Daytona Cosmograph watch valued in 2011 at $12,000 (£7,800), while another payment he said was $10,000 wrapped into a bundle of $100 bills.

Mr Shaw told the FBI he believed he spent between $25,000 and $45,000 in concert tickets for the two of them, including a Bruce Springsteen VIP event.

Mr London's lawyer disputed the amounts, saying his client only received about $35,000. Mr London has already turned over $7,500 in cash and the Rolex to officials.

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Heathrow Boosted By 'Aerial Silk Road'

Passenger traffic at London's Heathrow airport rose 3.9% in March, boosted by strong growth on routes to China and India.

Of the 5.9 million people who passed through the London hub last month, passenger numbers to China rose 15.1% year-on-year, according to Heathrow Ltd.

India also delivered good growth, according to the operator formerly known as BAA.

European traffic rose 7.4%, despite the continuing weakness of the European economy, with especially strong growth on routes to Italy, France and Norway.

Heathrow said the growth was also driven by a record March average load factor, a measure of how full flights are, of 75.8%, up 2.4 percentage points.

However freight transportation contracted at Europe's busiest airport.

It said that Heathrow's cargo activity was down 2.3% in March, In line with slower world trade trends.

Heathrow was hammered in January by extended travel misery due to ice and snow.

But by February it posted an 11.6% rise in full year profits, which came amid a rise in airline charges.

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Construction Industry Output Drops 7%

The total volume of UK construction output in February was 7% lower than in the same month last year, according to official figures.

Although output showed a significant contraction to a year earlier, output was 5.5% higher than in January, according to non-seasonally adjusted data that provides a glimmer of hope that activity in the sector may be recovering.

The Office for National Statistics (ONS) said nearly all sectors recorded increases during the month with the exception of 'private commercial other new work' which showed a fall of 0.5%.

Despite making up less than 7% of the economy, weak construction output was the main drag on growth during the first half of last year, helping push Britain into recession.

Surveys have pointed to weakness in the sector.

The Markit/CIPS construction index shows the sector contracted for a third consecutive month in March.

Construction output is highly responsive to the economic cycle and has fallen by 16.5% when comparing the last quarter of 2012 with the first quarter of 2008, the ONS said.

Comparing the three months from December 2012 to February 2013 with the same three months one year earlier, the volume of construction output decreased by 8.9%.

New work was lower by 10.7%, with large falls in public other new work and private-commercial other new work, which reported decreases of 23.7% and 9.8% respectively.

Other new work excludes the housing and infrastructure sectors but includes construction such as factories, warehouses, schools and offices.

There was also a 5.6% decrease in repair and maintenance, mainly due to a 8.3% fall in the repair and maintenance of housing.

Chancellor George Osborne used his Budget speech last month to push for greater residential construction as a way of sparking growth in the construction industry.

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HBOS: Bosses Get Bonuses 'For Going Bust'

Pressure is mounting on disgraced former HBOS bosses amid anger over mammoth pension pots and nearly £1m of "bonuses for going bust".

Seven directors of HBOS landed £914,000 in "change of control" payments triggered by the bank's rescue takeover by Lloyds Banking Group, following its £20.5bn taxpayer bailout in 2008.

It also emerged that Sir James Crosby and Andy Hornby - two of the three former HBOS chiefs damned last week by a parliamentary commission for "catastrophic failures of management" - were on pension schemes that accrued benefits at twice the rate of average workers.

Mr Hornby, eligible to start drawing down a £240,000-a-year HBOS pension when he turns 50 in four years' time, is now in the spotlight following Sir James's decision earlier this week to hand back 30% of his £580,000-a-year pension.

Under the change of control payments handed out at the time of the Lloyds takeover, Mr Hornby received £251,000 cash and 7,599 shares - on top of salary, pensions awards and redundancy payments.

MPs are now demanding an inquiry into the handouts.

John Mann, MP and member of the Treasury Select Committee, said the due diligence done at the time of the deal needed to be investigated, while the former bosses should also pay the money back.

He told the Guardian: "This is taxpayers' money being used to pay bonuses to bankers that brought down their own bank and cost thousands of ordinary workers their jobs - These are bonuses for going bust."

Others to receive the payments include Peter Cummings - the former head of corporate lending and the only ex-HBOS director penalised by the Financial Services Authority (FSA) after being fined £500,000 and banned for life from working in the City. He received £129,000 and 2,051 shares.

Lloyds said the decisions to award change-of-control payments and pensions were made by HBOS before its takeover.

A spokesman said: "At the time these arrangements were settled, Lloyds did not own HBOS.

"All decisions with respect to the redundancy or severance terms applicable to departing HBOS senior executives, including pensions, were made by the HBOS remuneration committee or board of HBOS prior to the acquisition by Lloyds."

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'Unpaid' Interns: Firms Reported To HMRC

The details of 100 companies accused of breaking the law by using unpaid interns in paid roles have been handed to HM Revenue and Customs by Employment Minister Jo Swinson.

Ms Swinson told Intern Aware, which campaigns for paid internships, that its claims that the unnamed employers broke the law will be treated as intelligence by officials at HMRC.

In a letter to the group, she said: "I would like to take this opportunity to thank Intern Aware for their help and continued support on this issue."

Employers break the law if they use unpaid interns to fill full-time positions that would be subject to national minimum wage rules.

Ms Swinson, a Lib Dem MP, told Sky News it was important to make a distinction between work experience, volunteering and an internship "where somebody is effectively employed, where they are doing a job that would otherwise need be done by a paid member of staff", thus requiring employers to pay the minimum wage. 

Intern Aware has called on HMRC to investigate companies suspected of breaking the law.

The group said it was pleased Ms Swinson had decided to pass the list of employers on to HMRC, but the move was "only the start and a lot more needs to be done".

Gus Baker, co-director of Intern Aware, told Sky News: "Young people who worked hard at school, who worked hard at university, who have done everything right and played by the rules are being told after they graduate that they can't get into the industries they want unless they work for free in unpaid internships."

"It excludes young people who can't afford to work for free," he added.

He said their list covered a "huge range" of companies, "from household brands to PR companies to things that people wouldn't have heard of".

HMRC said it did not comment on individual investigations.

A Department of Business spokesman said: "The law on the national minimum wage is clear. If somebody on a work experience placement or internship is a worker under NMW legislation, then they are entitled to the minimum wage.

"Internships can be a valuable way of helping young people get into work and realise their ambitions. Anyone who feels they are being exploited should contact the Pay and Work Rights Helpline."

:: The Pay and Work Rights Helpline can be reached on 0800 917 2368.

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Austria Slams UK Over 'Tax Haven Hypocrisy'

Austria's finance minister has slammed Britain over its push against tax havens and bank secrecy laws.

Maria Fekter said: "Great Britain has many money laundering centres and tax havens in its immediate legal remit - the Channel Islands Gibraltar, the Cayman Islands, Virgin Islands.

"These are all hot spots for tax evasion and money laundering."

Ms Fekter would fight transparency "like a lion"

She added: "The G20 never, never accepted the information exchange (for bank accounts) and they never did any step to close the money laundering in all the (Caribbean) islands ... or the US in Delaware."

Ms Fekter made the statements as she arrived in Dublin for a two-day meeting of eurozone finance ministers, where they later formally approved the terms of a Cyprus debt bailout, saying it could now go ahead once cleared by national parliaments.

Earlier, Ms Fekter said she would "fight like a lion" to defend Austria's banking privacy.

"Austria is sticking to bank secrecy. We fight tax evasion and money laundering. I don't expect any uncomfortable questions."

According to an estimate by The Economist magazine, some $3trn (£2trn) has been ploughed in oblique tax haven accounts where investors' identities can remain hidden.

A recent data leak allegedly revealed Caribbean account holders as including British nominee firms, American dentists and the families of dictators.

Austria has vowed to stick to its bank secrecy laws on EU depositors, even though it has come under increasing EU pressure.

Prime Minister David Cameron and Chancellor George Osborne have both pushed for greater transparency among EU and G20 nations.

Business Secretary Vince Cable has also voiced serious concerns over multinational businesses using cross-border structures to reduce corporation tax liabilities.

Isle of Man banks have improved transparency and data exchanging

Australia has already informed large companies that their tax accounts would be made public.

The outburst from the Austrian finance minister comes amid pressure from Germany for Luxembourg, which has become a finance hub for many multinationals, to improve bank transparency.

Luxembourg said it would improve transparency from 2015 and Austria remains the last EU nation to resist greater exchange of financial data.

Meanwhile at the Dublin meeting, Cyprus said it did not want more money from Europe to solve its financial crisis but it will ask for leeway to lessen the burden of measures imposed in exchange for agreed helped.

Cyprus said the bailout cost will jump from 17.5bn to 23bn euros but Luxembourg said it will oppose any increase in the EU & IMF's 10bn-euro contribution.

The Nicosia government said that banks and their depositors would not have to fund the extra 6bn euros needed to prevent the economy's collapse, on top of 17.5bn.

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Google Gives Users 'Digital Wills' For Data

Search giant Google has decided to give its users a 'digital will' option for their online data.

The new facility allows consumers to decide what happens with their online account data after they die.

The cyber-stored information may also be wiped with approval if they become inactive online for any other reason.

According to Goldsmiths PhD student Stacey Pitsillides, who has focused her research on the issue of data and death, the Google strategy breaks new ground.

Ms Pitsillides, 26, told Sky News: "Google is one of the first major players to develop a clear opening strategy to deal with this issue and it is hoped that this will encourage others in the industry to follow suit."

Dubbed "data-after-death", the official Google facility is formally known as inactive account manager and lets users tell the company what to do with email messages and other data if their account becomes inactive.

For example, Google email and YouTube posting can be deleted after three, six or 12 months of inactivity. Or they can choose specific people to receive the data access.

The issue of personal data possession has become an increasingly important issue as "cloud computing" and social media expands.

Although some online firms readily allow access to data by someone's next of kin, others have been forced into court battles over access.

"In our increasingly digital society where we collect all manner of digital data and memories around our online personas, it will become increasingly necessary to consider all aspects of life online," Ms Pitsillides said.

"As death is a part of life, it is imperative that new protocols and strategies are put into place to begin to sensitively manage what happens to this aspect of ourselves after death."

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Ex-Apprentice Winner Loses Sugar Job Case

Former Apprentice winner Stella English has lost her claim of constructive dismissal against millionaire businessman Lord Sugar.

Ms English, 34, sued the Labour peer after resigning from the £100,000-a-year job that was her prize for winning series six of the BBC1 show in 2010.

She had complained her role at Lord Sugar's Viglen division was that of an "overpaid lackey", which her former boss strongly denied.

Ms English also claimed the job was "a sham" and a "PR construct", a tribunal heard last month.

The businessman insisted he had no case to answer and that Ms English was a "chancer" and a "money-grabber" who brought the case with the intention of settling out of court.

"I'm afraid she underestimated me and her reputation is now in tatters," Lord Sugar said.

In a written judgment, tribunal judge John Warren said: "This was a claim which should never have been brought."

Ms English and Lord Sugar pictured after she won The Apprentice

Lord Sugar has now vowed to take on the so-called claim culture as a "personal crusade".

He said: "She picked on the wrong person here and I do hope that, apart from it being a victory for me, that other business people will start to realise they shouldn't succumb to this type of blackmail and they should fight it."

After winning the TV series, Ms English was given a job at Viglen, supplying IT equipment to academy schools.

But she claimed that when the business mogul told her he would not be renewing her contract she was given no choice but to resign.

Ms English, who quit Viglen in May 2011, said she had no real role there and was not taken seriously by her colleagues.

She said she did not feel like Lord Sugar's "apprentice" as she only saw him five times during her 13-month employment.

Ms English had fought back tears in court as she said she was given no guidance about what she was meant to be doing, and was "ostracised" by her colleagues.

She claimed her employment was a "sham" and that she had been relegated to administrative tasks.

Lord Sugar said Ms English tried to 'extract money' from him

Ms English, of Whitstable, Kent, also said she felt pressurised into taking up a new position at Lord Sugar's internet set-top box company YouView, but the tribunal panel said this was unfounded.

In September 2011, Ms English was told that her contract was not being renewed and she then quit.

However, the peer said at the time there was no long-term position available at YouView and that she had already made it clear she did not want to work at Viglen.

Lord Sugar said during the case that Ms English wrongly believed he was "scared" of articles about him or The Apprentice appearing in the press and that he would pay her off to avoid a hearing.

The tribunal judgment said it was made "abundantly clear" to Ms English that she would not be working directly under Lord Sugar.

It said she had the wrong idea about how glamorous, or otherwise, the role would be and that she had stated in her evidence that she believed previous winners of The Apprentice "had accompanied Lord Sugar in his private jet".

Lord Sugar said afterwards: "There was never a case for us to answer but her need for money and fame meant that the whole system was subjected to this charade.

"I have been cleared of a derisory attempt to smear my name and extract money from me.

"The allegations were without substance, and I believe this case was brought with one intention in mind - the presumption that I would not attend the tribunal, that I would not testify and that I would settle out of court, sending Ms English on her way with a tidy settlement."

He added: "This case was a sham and a total abuse of a tribunal system, which is there to protect employees who have been mistreated.

"It is not there to aid those chancing their arm at landing a big payday. I hope that other companies will learn from this example and also fight off derisory claims."

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Twitter Music App Expected To Launch

Buzz has continued to build about the social media giant Twitter's launching a new music app this weekend.

Key "influencers" have already been given a sneak preview of the software ahead of a public roll-out, expected within days.

Tech site AllThingsD said the music service, originally mooted for a Friday launch, may now be launched this weekend at the Coachella music festival at Indio, California.

Early on Saturday Wiz Khalifa, who has nearly 10 million follows, tweeted: "Man this new Twitter music app is insane!"

On Thursday Ryan Seacrest wrote: "Playing with twitter's new music app (yes it's real!).."

He added: "Lovin the app ...  shows what artists are trending, also has up and coming artists ..."

Concertgoers at Coachella on Friday's opening day

The speculation surrounding the launch comes after Twitter confirmed it had acquired the emerging music software firm We Are Hunted.

The San Francisco-based music firm was launched in 2007 in Australia, and allows its users to follow emerging music trends and artists.

Its software continuously updates lists of top music around the world.

Neither company indicated their plans, but the We Are Hunted site strongly hinted the deal means Twitter will be launching a long-rumoured music application.

"There's no question that Twitter and music go well together," a statement posted on the wearehunted.com site said.

The new music app is believed to rank music based on personalised trends and trigger points, including what Twitter accounts are followed.

The AllThingsD report said users will be able to listen to clips of music from inside the app, using third-party services and watch music videos from Vevo, which is operated by Universal Music and Sony.

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