Anger at Australian radio station over royal hoax












LONDON (AP) — It started out as a joke, but ended in tragedy.


The sudden death of a nurse who unwittingly accepted a prank call to a London hospital about Prince William‘s pregnant wife Kate has shocked Britain and Australia, and sparked an angry backlash Saturday from some who argue the DJs who carried out the hoax should be held responsible.












At first, the call by two irreverent Australian DJs posing as royals was picked up by news outlets around the world as an amusing anecdote about the royal pregnancy. Some complained about the invasion of privacy, the hospital was embarrassed, and the radio presenters sheepishly apologized.


But the prank took a dark twist Friday with the death of nurse Jacintha Saldanha, a 46-year-old mother of two, three days after she took the hoax call. Police have not yet determined Saldanha‘s cause of death, but people from London to Sydney have been making the assumption that she died because of stress from the call.


King Edward VII’s Hospital, where the former Kate Middleton was being treated for acute morning sickness this week, wrote a strongly-worded letter to the 2DayFM radio station’s parent company Southern Cross Austereo, condemning the “truly appalling” hoax and urging it to take steps to ensure such an incident would never happen again.


“The immediate consequence of these premeditated and ill-considered actions was the humiliation of two dedicated and caring nurses who were simply doing their job tending to their patients,” the letter read. “The longer term consequence has been reported around the world and is, frankly, tragic beyond words.”


The hospital did not comment when asked whether it believed the prank call had directly caused Saldanha’s death, only saying that the protest letter spoke for itself.


DJs Mel Grieg and Michael Christian, who apologized for the prank on Tuesday, took down their Twitter accounts after they were bombarded by thousands of abusive comments. Rhys Holleran, CEO of Southern Cross Austereo, said the pair have been offered counseling and were taken off the air indefinitely.


No one could have foreseen the tragic consequences of the prank, he stressed.


“I spoke to both presenters early this morning and it’s fair to say they’re completely shattered,” Holleran told reporters on Saturday.


“These people aren’t machines, they’re human beings,” he said. “We’re all affected by this.”


Details about Saldanha have been trickling out since the duty nurse’s body was found at apartments provided by the private hospital, which has treated a line of royals before, including Prince Philip, who was hospitalized there for a bladder infection in June.


The nurse, who was originally from India, had lived with her partner Benedict Barboza and a teenage son and daughter in Bristol, in southwestern England, for the past nine years. The hospital praised her as a “first-class nurse” who was well-respected and popular among colleagues during her four years working there.


Just before dawn on Tuesday, Saldanha was looking after her patients when the phone rang. A woman pretending to be Queen Elizabeth II asked to speak to the duchess, and, believing the caller, Saldanha transferred the call to a fellow nurse caring for the duchess, who spoke to the two DJs about Kate’s condition live on air.


During the call — which was put online and later broadcast on news channels worldwide — Grieg mimicked the Britain’s monarch’s voice and asked about the duchess’ health. She was told Kate “hasn’t had any retching with me and she’s been sleeping on and off.” Grieg and Christian, who pretended to be Prince Charles, also discussed with the nurse when they could travel to the hospital to check in on Kate.


Three days later, officers responding to reports that a woman was found unconscious discovered Saldanha, who was pronounced dead at the scene. Police didn’t release a cause of death, but said they didn’t find anything suspicious. A coroner will make a determination on the cause.


In the aftermath of Saldanha’s death, some speculated about whether the nurse was subject to pressure to resign or about to be punished for the mistake. Royal officials said Prince William and Kate were “deeply saddened,” but insisted that the palace had not complained about the hoax. King Edward VII’s Hospital also maintained that it did not reprimand Saldanha.


“We did not discipline the nurse in question. There were no plans to discipline her,” a hospital spokesman said. He declined to provide further details, and did not respond to questions about the second nurse’s condition.


The Australian Communications and Media Authority, which regulates radio broadcasting, said it has received complaints about the prank and is discussing the matter with the Sydney-based station, which yanked its Facebook page after it received thousands of angry comments.


Holleran, the radio executive, would not say who came up with the idea for the call. He only said that “these things are often done collaboratively.” He said 2DayFM would work with authorities, but was confident the station hadn’t broken any laws, noting that prank calls in radio have been happening “for decades.”


The station has a history of controversy, including a series of “Heartless Hotline” shows in which disadvantage people were offered a prize that could be taken away from them by listeners.


Saldanha’s family asked for privacy in a brief statement issued through London police.


Flowers were left outside the hospital’s nurse’s apartments, with one note reading: “Dear Jacintha, our thoughts are with you and your family. From all your fellow nurses, we bless your soul. God bless.”


Officials from St. James’s Palace have said the duchess is not yet 12 weeks pregnant. The child would be the first for her and William.


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Software guru McAfee wants to return to United States












GUATEMALA CITY (Reuters) – Software guru John McAfee, fighting deportation from Guatemala to Belize to face questions about the slaying of a neighbor, said on Saturday he wants to return to the United States.


“My goal is to get back to America as soon as possible,” McAfee, 67, said in a phone call to Reuters from the immigration facility where he is being held for illegally crossing the border to Guatemala with his 20-year-old girlfriend.












“I wish I could just pack my bags and go to Miami,” McAfee said. “I don’t think I fully understood the political situation. I’m an embarrassment to the Guatemalan government and I’m jeopardizing their relationship with Belize.”


The two neighboring countries in Central America are locked in a decades-long territorial dispute and voters in 2013 will decide in a referendum how to proceed.


Responding to McAfee’s remarks, a U.S. State Department spokeswoman said U.S. citizens in foreign countries are subject to local laws. Officials can only ensure they are “treated properly within this framework,” she said.


On Wednesday, Guatemalan authorities arrested McAfee in a hotel in Guatemala City where he was holed up with his Belizean girlfriend.


The former Silicon Valley millionaire is wanted for questioning by Belizean authorities, who say he is a “person of interest” in the killing of fellow American Gregory Faull, McAfee’s neighbor on the Caribbean island of Ambergris Caye.


The two had quarreled at times, including over McAfee’s unruly dogs. Authorities in Belize say he is not a prime suspect in the investigation.


Guatemala rejected McAfee’s request for asylum on Thursday. His lawyers then filed several appeals to block his deportation. They say it could take months to resolve the matter.


The software developer has been evading Belize authorities for nearly four weeks and has chronicled his life on the run in his blog, www.whoismcafee.com.


McAfee claims authorities will kill him if he turns himself in for questioning. He has denied any role in Faull’s killing and said he is being persecuted by Belize’s ruling party for refusing to pay some $ 2 million in bribes.


Belize’s prime minister has rejected this, calling McAfee paranoid and “bonkers.


BEATING HEAD AGAINST WALL


After making millions with the anti-virus software bearing his name, McAfee later lost much of his fortune. For the past four years he has lived in semi-reclusion in Belize.


He started McAfee Associates in the late 1980s but left soon after taking it public. McAfee now has no relationship with the company, which was later sold to Intel Corp.


Hours after his arrest, McAfee was rushed to a hospital for what his lawyer said were two mild heart attacks. Later he said the problem was stress. McAfee said he fainted after days of heavy smoking, poor eating and knocking his head against a wall.


He told Reuters he no longer has access to the Internet and has turned over the management of his blog to friends in Seattle, Washington. On Saturday, they began posting a series of files claiming to detail Belize’s corruption.


Residents and neighbors in Belize have said the eccentric tech entrepreneur, who is covered in tribal tattoos and kept an entourage of bodyguards and young women on the island, had appeared unstable in recent months.


Police in April raided his property in Belize on suspicion he was running a lab to make illegal narcotics. There already was a case against him for possession of illegal firearms.


McAfee says the charges are an attempt to frame him.


“People are saying I’m paranoid and crazy but it’s difficult for people to comprehend what has been happening to me,” he said. “It’s so unusual, so out of the mainstream.”


(Editing by Dave Graham and Bill Trott)


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Viral rapper PSY apologizes for anti-US protests












South Korean rapper and Internet sensation PSY is apologizing to Americans for participating in anti-U.S. protests several years ago.


Park Jae-sang, who performs as PSY, issued a statement Friday after reports surfaced that he had participated in concerts protesting the U.S. military presence in South Korea during the early stages of the Iraq war.












At a 2004 concert, the “Gangnam Style” rapper performs a song with lyrics about killing “Yankees” who have been torturing Iraqi captives and their families “slowly and painfully.” In another protest, he smashed a model of a U.S. tank on stage.


“While I’m grateful for the freedom to express one’s self, I’ve learned there are limits to what language is appropriate and I’m deeply sorry for how these lyrics could be interpreted,” he wrote in the statement. “I will forever be sorry for any pain I have caused by those words.”


The 34-year-old rapper says the protests were part of a “deeply emotional” reaction to the war and the death of two Korean school girls, who were killed when a U.S. military vehicle hit them as they walked alongside the road. He noted antiwar sentiment was high around the world at the time.


PSY attended college in the U.S. and says he understands the sacrifices U.S. military members have made to protect South Korea and other nations. He has recently performed in front of servicemen and women.


“And I hope they and all Americans can accept my apology,” he wrote. “While it’s important that we express our opinions, I deeply regret the inflammatory and inappropriate language I used to do so. In my music, I try to give people a release, a reason to smile. I have learned that thru music, our universal language we can all come together as a culture of humanity and I hope that you will accept my apology.”


His participation in the protests was no secret in South Korea, where the U.S. has had a large military presence since the Korean War, but was not generally known in America until recent news reports.


PSY did not write “Dear American,” a song by The N.E.X.T., but he does perform it. The song exhorts the listener to kill the Yankees who are torturing Iraqi captives, their superiors who ordered the torture and their families. At one point he raps: “Kill their daughters, mothers, daughters-in-law, and fathers/Kill them all slowly and painfully.”


PSY launched to international acclaim based on the viral nature of his “Gangnam Style” video. It became YouTube’s most watched video, making him a millionaire who freely crossed cultural boundaries around the world. Much of that success has happened in the U.S., where the rapper has managed to weave himself into pop culture.


He recently appeared on the American Music Awards, dancing alongside MC Hammer in a melding of memorable dance moves that book-end the last two decades. And the Internet is awash with copycat versions of the song. Even former Republican Sen. Alan Simpson, the 81-year-old co-chairman of President Barack Obama‘s deficit commission, got in on the fun, recently using the song in a video to urge young Americans to avoid credit card debt.


It remains to be seen how PSY’s American fans will react. Obama, the father of two pop music fans, wasn’t letting the news change his plans, though.


Earlier Friday, the White House confirmed Obama and his family will attend a Dec. 21 charity concert where PSY is among the performers. A spokesman says it’s customary for the president to attend the “Christmas in Washington” concert, which will be broadcast on TNT. The White House has no role in choosing performers for the event, which benefits the National Children’s Medical Center.


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Boehner says Obama pushing U.S. toward “fiscal cliff”












WASHINGTON (Reuters) – Republican House Speaker John Boehner accused President Barack Obama of pushing the country toward the “fiscal cliff” on Friday and of wasting another week without making progress in talks.


With three weeks left before a combination of steep tax hikes and deep spending cuts kicks in unless Congress intervenes, Boehner said the administration had adopted a “my way or the highway” approach and was engaging in reckless talk about going over the cliff.












“This isn’t a progress report because there is no progress to report,” Boehner told reporters at the Capitol. “The president has adopted a deliberate strategy to slow-walk our economy right to the edge of the fiscal cliff.”


The day’s rhetoric did point the way to a possible compromise that has been discussed for weeks on the main sticking point, tax hikes for the wealthy.


While Obama wants tax rates raised to 39.6 percent from 35 percent, he has not ruled out a smaller increase, perhaps to 37 percent. On Friday, Boehner, House Minority Leader Nancy Pelosi and Vice President Joe Biden indicated flexibility on the “37 percent solution.”


Biden was most explicit, saying that raising the rate was “not a negotiable issue; theoretically we can negotiate how far up.”


“There are a lot of things that are possible to put the revenue that the president seeks on the table,” Boehner said when asked about the same thing.


Pelosi, questioned later about Boehner’s remark, said, “It’s not about the rate, it’s about the money.”


But the bleak report from Boehner prolonged the economic uncertainty surrounding the fiscal cliff, which has already riled markets, slowed down business decisions and disrupted the budgeting processes for government at all levels across the country.


Economists say going over the cliff could throw the economy back into a recession.


Obama has called for extending the tax cuts set to expire on December 31 for middle-class taxpayers, but letting them rise for the wealthiest 2 percent of Americans. Boehner and Republicans oppose his plan, preferring to find new revenues by closing loopholes and reducing deductions.


Boehner characterized as “reckless talk” Treasury Secretary Timothy Geithner’s comment this week that the administration was prepared to go over the cliff if tax rates for the wealthiest were not increased.


The downbeat assessment was in line with what Boehner has offered for weeks as the two sides hold their ground on Obama’s call for raising tax rates and Republican calls for cuts in entitlements like the Medicare and Medicaid healthcare programs for seniors and the poor.


Congressional aides said there were no plans for meetings on the issue this weekend. Future talks will be limited to Boehner and Obama and their staffs as the deadline approached, aides said.


Boehner said his telephone conversation with Obama on Wednesday and renewed staff talks on Thursday had not made any progress.


‘MORE OF THE SAME’


“The phone call was pleasant, but it was just more of the same. Even the conversations the staff had yesterday were just more of the same. It’s time for the president, if he’s serious, to come back to us with a counteroffer,” Boehner said.


Boehner and the House of Representatives leadership submitted their terms for a deal to the White House on Monday, after Obama offered his opening proposal last week.


The plans from both sides would cut deficits by more than $ 4 trillion over the next 10 years but differ on how to get there. Republicans want more drastic spending cuts in entitlement programs, while Obama wants to raise more revenue with tax increases and to boost some spending to spur the sluggish economy.


With polling showing most Americans would blame Republicans if the country goes off the cliff, more House Republicans have been urging Boehner to get an agreement quickly, even if it means tax hikes for the wealthiest.


But Boehner could have a challenge selling an eventual agreement to conservative Tea Party sympathizers in the House, some of whom are openly critical of the concessions the speaker has already made.


Boehner has been under fire from the right for proposing $ 800 billion in new revenue and for removing from House committees four conservative Republican lawmakers who were seen as bucking the leadership.


“When he couples this conservative purging with a negotiated tax increase of $ 800 billion, we are starting to see more and more signs that he’s not dedicated to fiscally conservative beliefs,” Andrew Roth of the influential anti-tax group Club for Growth told Fox News.


If the question of whether to raise tax rates is resolved, the two sides will then try to figure out a way to deal with the spending cuts, perhaps postponing or trimming them. They will also work toward a longer-term deficit-reduction package to be taken up after the new Congress is sworn in next month.


At a news conference on Friday, Pelosi threw her support behind a White House proposal to give Obama power to raise U.S. borrowing authority without legislation from Congress.


The debt ceiling issue, which provoked a 2011 showdown that led to a downgrade of the U.S. credit rating, has become entwined in the fiscal cliff debate. The debt limit will need to be raised in the next few months.


“The White House and House Democrats are on the same page on the debt ceiling,” Pelosi said.


(Additional reporting by Susan Heavey, Rachelle Younglai, David Lawder and Richard Cowan; Writing by John Whitesides; Editing by Eric Beech and Peter Cooney)


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‘Fiscal cliff’ woes could extend into 2014-BofA












CHARLOTTE, North Carolina (Reuters) – If the United States goes off the “fiscal cliff” and stays there for too long, the economy could suffer into 2014, Bank of America Corp’s head of commercial banking says.


Concern about the so-called fiscal cliff is already causing mid-sized businesses to pause activity and to issue special dividends ahead of possible tax increases, Laura Whitley said in an interview this week.












“It will push you into planning season when people are thinking about not 2013 but 2014,” Whitley said.


The “fiscal cliff” is a $ 600 billion combination of steep tax hikes and deep spending cuts that will kick in next year unless Congress intervenes.


Whitley remains confident that her business will continue to increase total loans, a bright spot for a bank still struggling to recover from the financial crisis.


“We will finish the year strong,” she said.


In some cases, the “fiscal cliff” is actually providing a boon to the bank because customers are using debt to finance their dividend payments. Whitley’s group works with public and private companies.


Bank of America‘s total loans in the third quarter fell 4 percent from a year ago to $ 893 billion as the No. 2 U.S. bank by assets continued to shed unwanted consumer mortgages. But commercial loans, including ones made to large corporations, climbed 7 percent to $ 330.8 billion.


After a year of building capital to meet new international requirements, Bank of America CEO Brian Moynihan said at an investor conference this week that he is pushing his team to make more loans.


Whitley, 51, has led Bank of America’s commercial banking business since the fall of 2011, when the previous head, David Darnell, became co-chief operating officer, overseeing consumer banking and wealth management.


Over a nearly 30-year career at the bank and predecessor companies, she has held posts in middle-market banking, investment banking and wealth management. In 2011, she was also one of the leaders steering a company-wide cost-cutting program called Project New BAC.


Whitley’s unit provides mid-sized businesses with loans, cash management services and other products. In a presentation this week, the bank said lending and treasury management services for commercial customers with revenues between $ 50 million and $ 2 billion brought in $ 6.1 billion in revenue in the first nine months of the year, nearly one-tenth of the company’s total.


The growth comes in a year in which the bank eliminated an undisclosed number of jobs in the commercial lending unit as part of New BAC. The unit, which has just under 5,000 employees, is not planning any more cuts and is now adding 50 lenders in key markets such as Colorado, Georgia and Florida, she said. The bank is also adding staff in sectors such as new media and energy.


Commercial lending has been a growth area for many banks, so Bank of America has faced competition for loans and for employees. Earlier this year, JPMorgan Chase & Co hired some of its bankers as part of an expansion into Bank of America’s hometown of Charlotte, North Carolina.


“At that time I think we were more vulnerable because it was the middle of New BAC and people were concerned about what would that mean for our business,” Whitley said. “The business was very sound.”


(Reporting by Rick Rothacker in Charlotte, North Carolina; Editing by Dan Grebler)


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Protesters surge around Egypt’s presidential palace












CAIRO (Reuters) – Tens of thousands of Egyptian protesters surged around the presidential palace on Friday and the opposition rejected President Mohamed Mursi‘s call for dialogue to end a crisis that has polarized the nation and sparked deadly clashes.


The Islamist leader’s deputy said he could delay a December 15 referendum on a constitution that liberals opposed, although the concession only partly meets a list of opposition demands that include scrapping a decree that expanded Mursi‘s powers.












“The people want the downfall of the regime” and “Leave, leave,” crowds chanted after bursting through barbed wire barricades and climbing on tanks guarding the palace of Egypt‘s first freely elected president.


Their slogans echoed those used in a popular revolt that toppled Mursi’s predecessor Hosni Mubarak in February 2011.


Vice President Mahmoud Mekky said in a statement sent to local media that the president was prepared to postpone the referendum if that could be done without legal challenge.


The dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. “Tomorrow everything will be on the table,” a presidential source said of the talks.


The opposition has demanded that Mursi rescind a November 22 decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.


The state news agency reported that the election committee had postponed the start of voting for Egyptians abroad until Wednesday, instead of Saturday as planned. It did not say whether this would affect the timing of voting in Egypt.


Ahmed Said, leader of the liberal Free Egyptians Party, told Reuters that delaying expatriate voting was made to seem like a concession but would not change the opposition’s stance.


He said the core opposition demand was to freeze Mursi’s decree and “to reconsider the formation and structure of the constituent assembly”, not simply to postpone the referendum.


The opposition organized marches converging on the palace which elite Republican Guard units had ringed with tanks and barbed wire on Thursday after violence between supporters and opponents of Mursi killed seven people and wounded 350.


Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo’s al-Azhar mosque for six Mursi partisans who were among the dead. “With our blood and souls, we sacrifice to Islam,” they chanted.


“ARM-TWISTING”


In a speech late on Thursday, Mursi had refused to retract his November 22 decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.


The National Salvation Front, the main opposition coalition, said it would not join the dialogue. The Front’s coordinator, Mohamed ElBaradei, a Nobel peace laureate, dismissed the offer as “arm-twisting and imposition of a fait accompli”.


Murad Ali, spokesman of the Brotherhood’s Freedom and Justice Party (FJP), said opposition reactions were sad: “What exit to this crisis do they have other than dialogue?” he asked.


Mursi’s decree giving himself extra powers sparked the worst political crisis since he took office in June and set off renewed unrest that is dimming Egypt’s hopes of stability and economic recovery after nearly two years of turmoil following the overthrow of Mubarak, a military-backed strongman.


The turmoil has exposed contrasting visions for Egypt, one held by Islamists, who were suppressed for decades by the army, and another by their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms.


Caught in the middle are many of Egypt’s 83 million people who are desperate for an end to political turbulence threatening their precarious livelihoods in an economy under severe strain.


“We are so tired, by God,” said Mohamed Ali, a laborer. “I did not vote for Mursi nor anyone else. I only care about bringing food to my family, but I haven’t had work for a week.”


ECONOMIC PAIN


A long political standoff will make it harder for Mursi’s government to tackle the crushing budget deficit and stave off a balance of payments crisis. Austerity measures, especially cuts in costly fuel subsidies, seem inevitable to meet the terms of a $ 4.8-billion IMF loan that Egypt hopes to clinch this month.


U.S. President Barack Obama told Mursi on Thursday of his “deep concern” about casualties in this week’s clashes and said “dialogue should occur without preconditions”.


The upheaval in the most populous Arab nation worries the United States, which has given billions of dollars in military and other aid since Egypt made peace with Israel in 1979.


The conflict between Islamists and opponents who each believe the other is twisting the democratic rules to thwart them has poisoned the political atmosphere in Egypt.


The Muslim Brotherhood’s spokesman, Mahmoud Ghozlan, told Reuters that if the opposition shunned the dialogue “it shows that their intention is to remove Mursi from the presidency and not to cancel the decree or the constitution as they claim”.


Ayman Mohamed, 29, a protester at the palace, said Mursi should scrap the draft constitution and heed popular demands.


“He is the president of the republic. He can’t just work for the Muslim Brotherhood,” Mohamed said of the eight-decade-old Islamist movement that propelled Mursi from obscurity to power.


(Additional reporting by Omar Fahmy; Writing by Edmund Blair and Alistair Lyon; Editing by Giles Elgood)


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New iPad mini orders will be delivered in time for Christmas












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Actor Stephen Baldwin charged in NY tax case












WHITE PLAINS, N.Y. (AP) — Actor Stephen Baldwin was charged Thursday with failing to pay New York state taxes for three years, amassing a $ 350,000 debt.


Rockland County District Attorney Thomas Zugibe said Baldwin, of Upper Grandview, skipped his taxes in 2008, 2009 and 2010.












The youngest of the four acting Baldwin brothers pleaded not guilty at an arraignment and was freed without bail. His lawyer, Russell Yankwitt, said Baldwin should not have been charged.


“Mr. Baldwin did not commit any crimes, and he’s working with the district attorney‘s office and the New York State Tax Department to resolve any differences,” Yankwitt said.


The district attorney said Baldwin could face up to four years in prison if convicted. The actor is due back in court on Feb. 5.


Zugibe said Baldwin owes more than $ 350,000 in tax and penalties.


“We cannot afford to allow wealthy residents to break the law by cheating on their taxes,” the district attorney said. “The defendant’s repetitive failure to file returns and pay taxes over a period of several years contributes to the sweeping cutbacks and closures in local government and in our schools.”


Thomas Mattox, the state tax commissioner, said, “It is rare and unfortunate for a personal income tax case to require such strong enforcement measures.”


Baldwin, 46, starred in 1995′s “The Usual Suspects” and appeared in 1989′s “Born on the Fourth of July.” He is scheduled to appear in March on NBC’s “The Celebrity Apprentice.”


His brothers Alec, William and Daniel are also actors.


A bankruptcy filing in 2009 said Stephen Baldwin owed $ 1.2 million on two mortgages, $ 1 million in taxes and $ 70,000 on credit cards.


In October, Baldwin pleaded guilty in Manhattan to unlicensed driving and was ordered to pay a $ 75 fine. Earlier this year, he lost a $ 17 million civil case in New Orleans after claiming that actor Kevin Costner and a business partner duped him in a deal related to the cleanup of the 2010 Gulf of Mexico oil spill. The actors and others had formed a company that marketed devices that separate oil from water.


Baldwin co-hosts a radio show with conservative talk figure Kevin McCullough.


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Negotiators see glimmers of progress on farm bill












WASHINGTON (Reuters) – With a week left to act, agricultural leaders in Congress are still deadlocked on two major issues for a new U.S. farm bill, cuts in crop subsidies and reductions in food stamps, said two of the four key negotiators on Thursday.


But the leaders of the House and Senate agriculture committees suggested that recent talks had yielded at least some progress.












Without reauthorization, U.S. farm policy would revert to the provisions of the Agricultural Act of 1949, the last “permanent” farm bill and one crafted for an entirely different U.S. economy.


Among other things, if lawmakers do not agree on a new bill, milk prices in U.S. grocery stores could double next month under terms of the fall-back statute which would also limit plantings while pushing up farm subsidies by billions of dollars.


A new farm bill would now likely be absorbed into an overall budget-cutting bill that could avert the looming “fiscal cliff” of tax increases and spending cuts. Farm spending cuts of $ 23 billion to $ 35 billion have been floated.


In speeches at a farm policy conference in Washington on Thursday, the leaders of the House and Senate Agriculture committees were adamant the final version of the five-year, $ 500 billion bill must include elements that are lightning rods for controversy.


Congress is scheduled to adjourn for the year on December 14, although top Republicans have said it will not adjourn until a solution to the fiscal cliff has been announced.


“I would rather have nothing” than a farm bill that does not give farmers the option of price supports, said House Agriculture chairman Frank Lucas. “You need to give our producers a choice.”


The Senate version of the farm bill, passed in June with proposed spending cuts totaling $ 23 billion, would replace traditional farm subsidies with an insurance-like program that compensates grain and oilseed growers when revenue from a crop is more than 11 percent below average.


Senate Agriculture chairwoman Debbie Stabenow said on Thursday that there were strong differences between the House and Senate versions.


“I would never accept what the House did” in slashing $ 16 billion in funding for food stamps, the steepest cuts in a generation for a program that helps millions of lower-income Americans keep food on the table.


The Senate bill would cut food stamps by $ 4 billion.


Nonetheless, Lucas and Stabenow said a compromise may be agreed upon in time to become part of a must-pass deficit bill.


An Oklahoma Republican, Lucas said “a lot of progress” has been made in closed-door discussions among the four leaders of the committees. Stabenow, a Michigan Democrat, echoed that sentiment.


“I am very encouraged by the negotiations … If people of good will sit around the table, you can work it out,” she said.


There are some areas of agreement. Both sides would cut conservation spending by $ 6 billion and crop subsidies by more than $ 13 billion, partly by ending direct-payment subsidies now issued regardless of need.


They also would expand the federally subsidized crop insurance system, now the largest strand in the farm safety net, and convert cotton subsidies to an insurance program, which would resolve a World Trade Organization ruling against the U.S. cotton program.


Still, farm subsidies and food stamps are the chief disputes. And Lucas said a transition period may be needed to allow time to put the new law into effect.


He left open the possibility of another round of the $ 5 billion-a-year direct payment program, depending on the savings demanded by congressional leaders.


The precise target for farm spending cuts may be determined as part of high-level deal-making between the White House and Congress. The White House has suggested cuts of $ 32 billion, for example, including reduction in crop insurance.


(Reporting by Charles Abbott; editing by Ros Krasny and Jim Marshall)


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Toronto mayor to stay in power pending appeal of ouster












TORONTO (Reuters) – Toronto Mayor Rob Ford can stay in power pending an appeal of a conflict of interest ruling that ordered him out of his job as leader of Canada’s biggest city, a court ruled on Wednesday.


Madam Justice Gladys Pardu of the Ontario Divisional Court suspended a previous court ruling that said Ford should be ousted. Ford’s appeal of that ruling is set to be heard on January 7, but a decision on the appeal could take months.












Justice Pardu stressed that if she had not suspended the ruling, Ford would have been out of office by next week. “Significant uncertainty would result and needless expenses may be incurred if a by-election is called,” she said.


If Ford wins his appeal, he will get to keep his job until his term ends at the end of 2014. If he loses, the city council will either appoint a successor or call a special election, in which Ford is likely to run again.


“I can’t wait for the appeal, and I’m going to carry on doing what the people elected me to do,” Ford told reporters at City Hall following the decision.


Ford, a larger-than-life character who took power on a promise to “stop the gravy train” at City Hall, has argued that he did nothing wrong when he voted to overturn an order that he repay money that lobbyists had given to a charity he runs.


Superior Court Justice Charles Hackland disagreed, ruling last week that Ford acted with “willful blindness” in the case, and must leave office by December 10.


Ford was elected mayor in a landslide in 2010, but slashing costs without cutting services proved harder than he expected, and his popularity has fallen steeply.


He grabbed unwelcome headlines for reading while driving on a city expressway, for calling the police when a comedian tried to film part of a popular TV show outside his home, and after reports that city resources were used to help administer the high-school football team he coaches.


The conflict-of-interest drama began in 2010 when Ford, then a city councillor, used government letterhead to solicit donations for the football charity created in his name for underprivileged children.


Toronto’s integrity commissioner ordered Ford to repay the C$ 3,150 ($ 3,173) the charity received from lobbyists and companies that do business with the city.


Ford refused to repay the money, and in February 2012 he took part in a city council debate on the matter and then voted to remove the sanctions against him – despite being warned by the council speaker that voting would break the rules.


He pleaded not guilty in September, stating that he believed there was no conflict of interest as there was no financial benefit for the city. The judge dismissed that argument.


In a rare apology after last week’s court ruling, he said the matter began “because I love to help kids play football”.


Ford faces separate charges in a C$ 6 million libel case about remarks he made about corruption at City Hall, and is being audited for his campaign finances. The penalty in the audit case could also include removal from office.


(Reporting by Claire Sibonney; Editing by Janet Guttsman, Russ Blinch, Nick Zieminski; and Peter Galloway)


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