U.N. General Assembly voices concern for Myanmar’s Muslims

UNITED NATIONS (Reuters) – The U.N. General Assembly expressed serious concern on Monday over violence between Rohingya Muslims and Buddhists in Myanmar and called upon its government to address reports of human rights abuses by some authorities.

The 193-nation General Assembly approved by consensus a non-binding resolution, which Myanmar said last month contained a “litany of sweeping allegations, accuracies of which have yet to be verified.”

Outbreaks of violence between ethnic Rakhine Buddhists and the Rohingyas have killed dozens and displaced thousands since June. Rights groups also have accused Myanmar security forces of killing, raping and arresting Rohingyas after the riots. Myanmar said it exercised “maximum restraint” to quell the violence.

The unanimously adopted U.N. resolution “expressing particular concern about the situation of the Rohingya minority in Rakhine state, urges the government to take action to bring about an improvement in their situation and to protect all their human rights, including their right to a nationality.”

At least 800,000 Muslim Rohingyas live in Rakhine State along the western coast of Myanmar, also known as Burma. But Buddhist Rakhines and other Burmese view them as illegal immigrants from neighboring Bangladesh who deserve neither rights nor sympathy.

The resolution adopted on Monday is identical to one approved last month by the General Assembly’s Third Committee, which focuses on human rights. After that vote, Myanmar’s mission to the United Nations said that it accepted the resolution but objected to the Rohingyas being referred to as a minority.

“There has been no such ethnic group as Rohingya among the ethnic groups of Myanmar,” a representative of Myanmar said at the time. “Despite this fact, the right to citizenship for any member or community has been and will never be denied if they are in line with the law of the land.”

(Reporting By Louis Charbonneau; Editing by Paul Simao)

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British retailers start online sales early

LONDON (Reuters) – British retailers have brought forward their Christmas clearance sales online in the hope that shoppers will log on to buy bargains and offset lackluster spending in stores.

Marks & Spencer launched its sale online at midday on Monday, it said on its website, while department store John Lewis said it would cut online prices when its stores close at 1700 GMT. Debenhams has already started its online sale.

Retailers in recent years have started sales online on Christmas Day, ahead of the clearances in stores from Boxing Day, but are increasingly launching their online offers before Christmas after delivery deadlines for the day have passed.

Hard-pressed shoppers have been leaving it later to buy presents in the hope that retailers would slash prices, the British Retail Consortium said.

It was forecasting that 5 billion pounds ($ 8.1 billion) would be spent in the shops on Saturday and Sunday combined, the last weekend before Christmas.

Richard Dodd, the BRC’s head of Media and Campaigns, said weekend trading had met expectations.

“Christmas, ultimately once all the final sums are done, will turn out to be acceptable but not exceptional,” he said.

He said the sector expected a modest increase in cash spending against a year go, but not necessarily any significant increase in real terms once inflation was stripped out.

Many British families‘ budgets are stretched, according to a survey from Markit that showed the biggest deterioration in household finances for seven months.

Analyst Howard Archer at IHS Global Insight said the weakening in household finances could not come at a worse time for retailers, and it highlighted why many people appeared to have been careful in their Christmas shopping this year.

“The suspicion has to be that consumers will be especially keen to take advantage of genuine major bargains in the sales to acquire items that they cannot otherwise afford or are reluctant to make at the moment,” he said.

“However, we suspect that people will likely to be more careful in buying – or reluctant to buy – items that they don’t really want or need in the sales.”

($ 1 = 0.6180 British pounds)

(Reporting by Paul Sandle; Editing by Louise Heavens)

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Quentin Tarantino unchains America’s tormented past in “Django”

LOS ANGELES (Reuters) – Twenty years after Quentin Tarantino unveiled his first film “Reservoir Dogs,” the director has turned his eye to America’s slavery history, spinning a blood-filled retribution tale in his trademark style for “Django Unchained.”

Tarantino, 49, has become synonymous with violence and dark humor, taking on the Nazis in “Inglourious Basterds” and mobsters in “Pulp Fiction.”

In “Django Unchained,” to be released in U.S. theaters on Christmas Day, he fuses a spaghetti Western cowboy action adventure with a racially charged revenge tale set in the 19th century, before the abolition of slavery in the United States.

Jamie Foxx stars as a slave whose freedom is bought by a former dentist, played by Christoph Waltz. The two set off as bounty hunters, rounding up robbers and cattle rustlers before turning their attention to brutal plantation owners in America’s Deep South.

Tarantino is well-versed in delivering violence. But the director said he faced “a lot of trepidation” about filming the slavery scenes. He has already come under fire from some critics for the frequent use in the film of the “N-word” – a racial slur directed at blacks.

The director said he was initially hesitant to ask black actors to play slaves who are shackled and whipped, and even considered filming outside of the United States.

But a dinner with veteran Oscar-winning actor Sidney Poitier, whom Tarantino called a “father figure,” changed his mind after Poitier urged him to not “be afraid” of his film.

“This movie is a deep, deep, deep American story, and it needed to be made by an American, and it needed to star Americans. … Lots of the movies dealing with this issue have usually had Brits playing Southerners and it creates this arm’s-distance quality,” Tarantino said.

Much of the film’s more graphic slavery scenes, such as gladiator-style fights to the death and being encased naked in a metal hot box in the heat of the Southern sun, are drawn from real accounts.

“We were shooting on hallowed ground. This was the ground of our ancestors. … Their blood was in the grass, there’s still bits of flesh embedded in the bark,” Tarantino said.

The film has received good reviews from critics and is expected to add Oscar nominations in January to its five Golden Globe nods.

With the exception of Waltz, who plays eccentric German bounty hunter Dr. King Schultz, the majority of the main players are not only American but from the South.

“It seemed sacred to us, and we couldn’t help but channel those emotions, everybody on the crew and on the set. … Those were very moving days,” Tarantino said.

‘DESPICABLE’ CHARACTERS

Tarantino reunited with Waltz, who won an Oscar in 2010 for his role as a menacing Nazi officer in “Inglourious Basterds,” and long-time collaborator Samuel L. Jackson, who plays slave housekeeper Stephen, a character who Tarantino described as “the most despicable black (character)” in movie history.

“Stephen might be frankly the most fascinating character in the whole piece, and it was important to deal with that whole upstairs-downstairs aspect of the Antebellum South,” he said.

The role that has people talking is Leonardo DiCaprio‘s first villainous turn as a racist plantation owner – a stark contrast from his Hollywood heartthrob “Titanic” days and roles as eccentric Americans in “The Aviator” and “J. Edgar.”

Asked how he felt to be the first director to make DiCaprio a villain, Tarantino laughed, saying he felt “pretty darn good about it.” He commended DiCaprio for turning into a “Southern-fried Caligula,” referring to the tyrannical ancient Roman emperor.

“I saw him as a petulant boy emperor. … He has nothing but hedonistic hobbies and vices to indulge him, and it’s almost as if he’s rotting from the inside,” Tarantino said.

The film’s female lead, Django’s wife Broomhilda played by Kerry Washington, moves away from Tarantino’s fierce screen women such as Uma Thurman in “Kill Bill” and Diane Kruger in “Inglourious Basterds.”

Tarantino said Broomhilda was meant to be the “princess in exile.” He said he was “annoyed” when he was asked by a friend why Broomhilda did not exact revenge on her abusers in the same way as Thurman’s “Kill Bill” character. The film, he said, is “Django’s story.”

“It invokes … that odyssey that Django goes on and gives the black slave narrative the romantic dimensions of great opera or great folklore tales,” Tarantino said.

(Editing by Jill Serjeant, Patricia Reaney and Will Dunham)

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South Africa’s Mandela to remain in hospital for Christmas

JOHANNESBURG (Reuters) – Former South African President Nelson Mandela continues to respond to treatment more than two weeks after being taken to hospital in Pretoria and will remain there for Christmas Day, the presidency said on Monday.

The 94-year-old anti-apartheid hero and Nobel Peace laureate has been treated for a lung infection and gallstones after being hospitalized on December 8.

President Jacob Zuma said in a statement that Mandela “will recover from this episode with all our support… We also humbly invite all freedom loving people around the world to pray for him.”

It will be the first Christmas that Mandela has spent away from home since 1989, when he was still in prison. He was jailed for almost three decades for his role in the struggle against white minority rule.

He was released in 1990 and went on to use his prestige to push for reconciliation between whites and blacks as the bedrock of the post-apartheid “Rainbow Nation”.

Mandela was elected South Africa‘s first black president in 1994. He stepped down five years later after one term in office and has been largely removed from public life for the last decade.

(Reporting and writing by Ed Stoddard; Editing by Stella Mapenzauswa and Tom Pfeiffer)

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Forecasts For 2013 From Around the World

Central Bankers
“We face a broader challenge—to defend the market economy amongst so many who suffered during the financial crisis. This was expressed memorably by William McChesney Martin when he spoke to the Economic Club of New York in 1957. He said, ‘Men begin to question whether the merriment was worth the misery, especially when the misery was worse among the millions who had never got in on the merrymaking in the first place.’ ” —Mervyn King, governor, Bank of England
 
Africa
“Africa remains on course to double its GDP every decade. This will be the decade of infrastructure investment.” —Charles Robertson, chief economist, Renaissance Capital
 
Indonesia
“What matters for Indonesia now is China and Chinese domestic spending.” —Timothy Condon, chief economist, Asia, ING Investment Management in Singapore
 
Russia’s Energy Squeeze
“Russia is OK for now but their system gets shaky two to three years down the road. They’ve been riding a decade of high energy prices, but with all the new oil and gas coming from everywhere, prices will fall. That’ll wipe out Gazprom’s profits. They’re worried about U.S. natural gas exports to Europe. Russia’s days as Europe’s main energy supplier are numbered.” —Anders Aslund, senior fellow, Peterson Institute for International Economics
 
Argentina
“Investors have been burned before, but I think Argentina’s worst days are behind them. Basically, I don’t think they can mess up any further than they already have.” —Walter Molano, chief economist, BCP Securities
 
China
“Beijing understands that it needs to rebalance away from investment toward household consumption. Next year will be a crucial step toward that, causing growth to slow in the second half. Most importantly, it needs to tighten up credit. That’s going to be hard on the state-owned enterprises that’ve become so dependent on what has essentially been free capital. But China has reached a point where the growth of investment and credit is no longer wealth creating, it’s wealth destroying.” —Michael Pettis, finance professor, Peking University
 
Oil Prices
“Look for more demand weakness and rising supply. In the U.S., we’ve had six straight quarters where GDP rises and petroleum demand falls. We’re finally becoming more energy efficient. On the flip side, we continue to see crude production rising. The latest data has the U.S. producing 6.9 million barrels per day, up 16 percent from 2011. That rate’s not slowing down.” —Tim Evans, energy analyst, Citi Futures Perspective
 
Bullish on East Asia
“We expect quarter four also to be good, and that then feeds into a very strong next year.” —Bert Hofman, World Bank chief economist for East Asia
 
Japan Prime Minister Shinzo Abe
“Abe is going to hit the ground running. He can get broad agreement on a 10 trillion yen ($ 120 billion) stimulus package with infrastructure spending to jolt the economy out of recession. That will add to Japan’s pile of debt, but after you [top 200 percent] of GDP, what’s another 10 trillion yen? —Jeff Kingston, director of Asian Studies, Temple University
 
U.S. Employment
“So much depends on how quickly people continue to fade from the labor force out of frustration. That could actually bring down the unemployment rate rather quickly without a strong recovery in job growth. A stronger economy might actually hold up that rate longer than a weak one, because people will … jump back in and look for work. But remember, the unemployment rate is murky as a signal for the strength of the economy.” —James Galbraith, economist, University of Texas
 
Chinese Reform
“Xi has signaled he intends to change things. And there are people watching with a billion cell phones.” —Robert Lawrence Kuhn, author of How China’s Leaders Think
 
Temporary Hiring
“I’m beginning to see U.S. companies spend more and make a few more gambles. Give me all the IT, engineers, scientists, trained technicians, machinists you have. In Europe a lack of certainty has caused a halting of behavior. There’s downward pressure in Mexico, Brazil, and China. By no means do I see 2013 as a rock ‘n’ roll year.” —Carl Camden, CEO, Kelly Services
 
Japan-China Tension
“China’s intention to topple the status quo by use of coercion is clear. Does China want to see the Japan-China relations pass the point of no return?” —Japan Foreign Ministry statement
 
U.S. Housing
“We turned bullish on housing in the summer of 2011. Demand is greater than supply. It’s that simple. We, unlike other mature countries, still have people fall in love and get married and have babies. The big driver of demand is adult children moving out of the home. New home inventory is at a record low. [Credit is] more widely available than perceived. We are not complacent. I am a worrier beyond worrier. But it’s exciting right now.” —Ivy Zelman, Zelman & Associates
 
U.K. Economic Forecast
“Growth in the coming year will be just about zero.” —Michael Saunders, economist at Citi Research in London
 
India
“The budget deficit target will be missed. You have slower growth, revenues are weaker, and you still have a high level of subsidies in energy items that cost government money. There is an election that has to be called by May 2014, so there is always a risk you will get populist-type spending measures that could inflate the budget deficit.” —Art Woo, director of sovereigns, Fitch Ratings in Hong Kong
 
U.S. Capital Spending
“There is a lot of pent-up demand for investment spending that we think will get unleashed next year. Businesses have delayed capital projects in anticipation of the fiscal cliff. Capital spending has been notably weak in the last six months, much weaker than during the rest of the recovery. So a political deal, or even just some clarity about the future, could result in a nice bounceback in capital spending after the beginning of the year.” —Jan Hatzius, chief economist, Goldman Sachs
 
Italian Politics
“When people need me, I don’t abstain from acting.” —Silvio Berlusconi, former Italian Prime Minister, on why he’ll be a candidate in the 2013 elections
 
French Tax Rates
“I am leaving, because you consider that success, creativity, talent, anything different, should be sanctioned. I leave after paying, in 2012, an 85 percent tax rate on my income.” —Gérard Depardieu, French actor, on why he’s moving to Belgium
 
Federal Reserve
“Businesses that went right to the brink during the crisis are focused on survival and liquidity. Hopefully, that’s just a matter of healing and time. It’s one reason the Fed wants to be very consistent. If you put together a real consistent year of growth, that might cause companies to invest more.” —Julia Coronado, chief economist for North America, BNP Paribas
 
Data: International Monetary Fund, Fitch, Federal Reserve

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New Zealand level series thanks to Guptill century

EAST LONDON, South Africa (Reuters) – A brilliant, unbeaten century from opener Martin Guptill led New Zealand to an eight-wicket victory off the final ball against South Africa in the second T20 international on Sunday.

Chasing 169 for victory in 19 overs at Buffalo Park, Guptill helped erase the memory of Friday’s embarrassing capitulation to 86 all out in Durban with a stunning batting display as the tourists reached their target for the loss of just two wickets to level the series 1-1.

Requiring 39 from the final four overs and 11 off the last, Guptill was on 97 and needing four for victory when Rory Kleinveldt bowled the final delivery – a low full toss which was eased away through extra cover.

Guptill’s unbeaten 101 was just the third T20 international century by a New Zealander, the first two belonging to captain Brendon McCullum who was almost anonymous with 17 from 15 balls during a second-wicket partnership of 73 with Guptill.

The right-handed opener was similarly dominant during an opening stand of 76 with Rob Nicol (25) as he drove the Proteas attack impeccably straight and displayed the skills – and patience – so obviously missing from the New Zealand batsman in Durban.

Captain Faf du Plessis led from the front once again as South Africa posted a competitive 165-5 in 19 overs after losing the toss and being asked to bat first.

Du Plessis paced his innings to perfection on a tricky pitch to reach 63 from 43 balls with eight fours and a six in a match reduced to 19 overs per side following a 52-minute floodlight failure.

The deciding match takes place in Port Elizabeth on Wednesday.

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Video games and shooting: Is the NRA right?

After a week of silence following the Sandy Hook school shooting that killed 20 first graders and six staff in Newtown, Conn., the National Rifle Association blamed the entertainment industry – specifically the producers of violent video games for inciting what has become a pattern of gun violence in the United States.

In describing the industry, NRA Vice President Wayne LaPierre said, “There exists in this country a callous, corrupt and corrupting shadow industry that sells, and sows, violence against its own people.”

Mr. LaPierre faulted the news media for failing to report on “vicious, violent video games” such as “Grand Theft Auto,” “Mortal Kombat,” and “Splatterhouse” as egregious examples. He also singled out “Kindergarten Killer,” a free, fairly obscure online game.

“How come my research department could find it and all of yours either couldn’t or didn’t want anyone to know you had found it?” he asked reporters.

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Most academic research, as well as studies by the FBI and the US Secret Service, examining the link between violent video games and incident of violence does not support the gun lobby’s charge.

For example, a 2008 report by researchers at Harvard Medical School and Massachusetts General Hospital funded by the US Department of Justice found that violent video games may increase bullying or physical fighting in schools, but not mass gun violence.

“It’s clear that the ‘big fears’ bandied about in the press – that violent video games make children significantly more violent in the real world; that they will engage in the illegal, immoral, sexist and violent acts they see in some of these games – are not supported by the current research, at least in such a simplistic form,” the report states.

Joan Saab, director of the visual and cultural studies program at the University of Rochester in New York, says the gaming industry should share in the blame for promoting military weaponry to young people, but adds that the popularity of such games reflect the “larger culture we live in, which is heavily militarized,” in the midst of lengthy combat operations in Iraq and Afghanistan.

Ms. Saab says that the NRA’s call for armed guards in schools would make that kind of military culture more pervasive for children.

“If there are more armed guards in schools, kids are exposed to more guns. That’s when fantasy and reality aren’t blurred. When there are guns in schools, it becomes real life and the day-to-day environment becomes more dangerous than the game,” she says. In Newtown, as in Aurora, Colo. and the sites of other mass shootings, the gunman was outfitted in military-style dress.

By blaming video games for gun violence, the NRA also puts itself in a vulnerable position because, as Mother Jones reports, the company partnered with gaming producer Cave Entertainment in 2006 for “NRA Gun Club,” a PlayStation 2 game that allows users to fire over 100 different brand-name handguns.

LaPierre did not specify if Congress should move forward in regulating the gaming industry, perhaps because previous attempts were not successful.

A US Supreme Court ruling in 2011 struck down a California law that made it a crime to sell or rent what it classified as violent video games to minors. The ruling said the law, signed by then-Gov. Arnold Schwarzenegger (R) in 2005, violates First Amendment protections.

In the wake of Sandy Hook, Senate Commerce Committee Chairman Jay Rockefeller introduced a bill that calls for the National Academy of Sciences to examine the possible links between violent video games and violent incidents caused by children.

Overall, gun-based video games do not wholly represent total gaming industry sales, according to data from VGChartz, a UK-based research firm that tracks gaming sales. In 2011, for example, just seven of the top 20 best-selling games in the US involve warfare simulation. The other titles – “Just Dance 3,” “Kinect Adventures!” “New Super Mario Bros. Wii,” “Madden NFL 12,” and “Pokemon Black/White” – are designed around sports, dance, and children’s cartoon characters.

All of the games LaPierre mentions are more than 15 years old, with some dating back to the 1980s, with their popularity waning. For example, total unit sales in the US for the “Mortal Kombat” franchise dropped 70 percent in 2012, compared to the previous year total. The game debuted in 1992.

Gaming experts say that the majority of the games LaPierre cited do not portray gun violence – “Mortal Kombat” involves hand-to-hand combat, for example. They say they do not understand why he did not single out “first person shooter” games such as blockbuster franchises like the “Call of Duty” series, which is based on simulated gun action and is considered one of the most hyper-violent on the market. In fact, according to news reports, the game was also a favorite of Adam Lanza, the Newtown gunman who spent hours at home playing it.

“Some of those games [LaPierre mentions] are older than the [Newtown] shooter,” who was 20, says Christopher Grant, editor-in-chief of Polygon.com, an online site based in New York City that covers gaming news and trends. “I have no idea why he chose them. My theory is he didn’t want to pick anything too modern [such as ‘Call of Duty’ or ‘Doom’] that might overlap unfavorably with something their own members might enjoy.”

“Call of Duty” is known as a favorite of the military and is often credited for driving up recruitment. Activision Blizzard, the company behind “Call of Duty,” has donated thousands of copies to the US Navy; the company also created a non-profit foundation to help returning US military veterans.

According to the NPD Group, a global market research firm, retail gaming sales in the US plummeted 20 percent in the first eight months of 2012 compared to the same time period the previous year, a trend that follows years of declining sales. Between 2008 and 2011, total sales of industry software and hardware dropped 20.5 percent. According to the gaming industry website Gamasutra, 2012 sales are expected to be the lowest since 2006.

The sales drop is representative of major shifts in the gaming industry, which is slowly moving away from console-based games to those that are played via smartphones, digital tablets, and online through social networks.

The change has produced a new type of gamer: They are generally older, more ethnically and economically diverse, and they feed their gaming appetite in smaller bites and on-the-go, as opposed to the traditional gamer profile of a few years ago, which tended to be young males playing for hours in one sitting.

The Entertainment Software Association, an industry trade group based in Washington, reports that the average gamer today is 30 years old, the most frequent game purchaser is 35 years old, and that almost half (47 percent) of all gamers are women.

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Former President George H.W. Bush remains hospitalized

(Reuters) – Former President George H.W. Bush, who has been hospitalized for a month undergoing treatment for bronchitis, may not be released from a Houston hospital in time to celebrate Christmas at home as doctors had hoped.

Bush, 88, remained in stable condition and doctors were optimistic he would make a full recovery, George Kovacik, a spokesman at Methodist Hospital, said in an emailed statement on Sunday.

But doctors were being “extra cautious” with his care and no discharge date had been set, the statement said. Earlier this month, Kovacik said doctors expected Bush would be able to spend Christmas at home with his family.

“His doctors feel he should build up his energy before going home,” the statement said.

Bush, the 41st president and a Republican, took office in 1989 and served one term in the White House. The father of former President George W. Bush, he also is a former congressman, U.N. ambassador, CIA director and vice president for two terms under Ronald Reagan.

(Reporting by Kevin Gray; Editing by Daniel Trotta and Vicki Allen)

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Alcohol fraud rising, say traders

22 December 2012 Last updated at 20:25 ET

By Emma Forde 5 live Investigates

UK tax authorities are not doing enough to tackle alcohol duty fraud, claims a leading off-licence chain.

Bargain Booze told the BBC that the number of stores telling HM Revenue and Customs that they face illegal competition is rising.

Last year HMRC received over 600 reports to its tax hotline relating to alcohol fraud.

The Revenue said it acted on every piece of intelligence, but admitted investigations could take years.

The government has given HMRC £17m to tackle the gangs behind the fraud.

‘Paper event’

Continue reading the main story

“Start Quote

There are outlets all over the country which are selling at prices we couldn’t get even get close to matching and nobody is stopping them”

End Quote David Visick The Federation of Wholesale Distributors

Alcohol duty fraud in the UK often involves exporting alcohol to the EU – untaxed – and then bringing it back into the UK with false paperwork.

This method exploits EU rules which state duty does not have to be paid on alcohol when it is being transferred between registered producers or wholesalers – it is only paid when it enters the marketplace.

But the BBC’s 5 live Investigates programme has learned that some lorries containing duty-unpaid alcohol meant for export never even leave the UK.

“Increasingly it’s just a paper event – the lorry never goes abroad, so the actual product never leaves the UK. The lorry just stops on a lay-by somewhere and gets turned around,” says Keith Webb, acting managing director of Bargain Booze.

The illicit alcohol ends up in the hands of rogue wholesalers and retailers who then sell it on at prices which legitimate traders say are only possible if duty has been evaded.

A study published by the All Party Parliamentary Beer Group earlier this year, said HMRC estimates up to 1 in 5 cans and bottles of beer sold in the UK is illicit, and beer smuggling could be costing the Treasury around £500m per year in lost duty alone.

Representatives from the alcohol retail industry claim the total cost to the Exchequer could be billions of pounds: “HMRC view the loss of revenue to the Exchequer at £1.2bn, but that excludes wine. Within the trade, the real cost to the Exchequer is viewed as something in excess of £4bn a year,” says Keith Webb.

Illegal off-licences

5 live Investigates visited one suspected illegal wholesaler in the North West of England – a warehouse on an industrial estate. The programme team saw a wide range of alcohol being sold at very low prices, compared to what is offered on the high street.

For example, six bottles of Echo Falls Chardonnay was priced at £16.99 and 24 cans of Foster’s lager was £13.49.

Continue reading the main story

Alcohol duty fraud in the UK

• EU law requires that alcohol can be moved “duty unpaid” between registered warehouses


• Duty becomes payable at the point it enters the market – when it is sold to a non-bonded customer


• HMRC estimates duty fraud accounts for lost legitimate sales in the UK of over £1bn, with beer estimated at around half that total


• HMRC estimates that beer smuggling may be currently costing the Treasury around £500m in lost duty per year


• They believe that at least 1 in 10, and possibly 1 in 5, of all cans and bottles of beer on sale in the UK is duty unpaid


• Once fraudsters have smuggled beer back to the UK it can enter the legitimate supply chain, reappearing undetected alongside duty-paid beer in supermarkets and off-licences


• HMRC believes wine duty fraud is also significant in the UK and the Federation of Wholesale Distributors says its members have seen a decline in sales of an estimated £750m

Source: All-Party Parliamentary Beer Group, Beer Tax Fraud Inquiry, July 2012

A leading legitimate cash-and-carry operator said it could not find beers and wines so cheap even at wholesale prices, let alone match the on-the-shelf price offered to members of the public.

The cash-and-carry owner, who did not want to be named due to fear of reprisal from criminal gangs, says it would have to pay around £19.35 for a box of six bottles of Echo Falls Chardonnay – of that, £11.40 would be duty.

The same amount and brand of lager would cost £16.56, with duty at £9.36 per case.

Another legitimate wholesaler based in the West Midlands told the BBC its beer sales have fallen by around £20m in the last seven years as a direct result of illegal wholesalers operating in the same area.

Another legal retailer in the North West of England said it may stop selling alcohol altogether in the next 10 years because it cannot compete with the illegal trade.

“There are outlets all over the country which are selling at prices we couldn’t even get close to matching and nobody’s stopping them,” says David Visick from The Federation of Wholesale Distributors.

“That’s the responsibility of HMRC, but HMRC is more interested in chasing the problem to the root, to find the big criminals gangs who are behind this.”

Tackling criminal gangs

The BBC has been told one wholesaler suspected of alcohol fraud has been reported to HMRC over 30 times in the last 18 months – yet is still operating.

Continue reading the main story

5 live Investigates

Listen to the full report on 5 live Investigates on Sunday, 23 December at 21:00 GMT.

Sixteen people were convicted of alcohol fraud between 2009/2010, according to HMRC figures, and 40 civil penalties have been issued this year.

“We could chalk up a cricket score of prosecutions of small players and pawns in the organisations and that would make our outputs look good,” says Andy Leggett, HMRC’s deputy director of alcohol, tobacco & gambling taxes.

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Every single piece of intelligence is acted upon, but that does not necessarily mean we will go and knock on that specific door in the next week”

End Quote Andy Leggett HMRC

“But the reality is, that would have zero impact on the fraud because those people would be replaced within days.”

The government has allocated £917m to HMRC to tackle tax avoidance, evasion and criminal attack over the next four years – £17m of that is to specifically target the organised criminal gangs behind alcohol fraud.

“Every single piece of intelligence is acted upon, but that does not necessarily mean we will go and knock on that specific door in the next week,” says Andy Leggett. “That may lead to an investigation many years down the track or may lead to an investigation elsewhere.”

Mr Leggett says HMRC is determined to tackle the criminal gangs, but disrupting their trade takes time. Enforcement officers will use criminal prosecutions and civil penalties to dismantle the illicit trade, but he acknowledges the frustration felt by other traders operating lawfully.

Earlier this year, HMRC smashed a £50m-a-year alcohol tax evasion scam – the biggest uncovered. The gang imported beers and wines from France duty-free for onward export, but the stock never left the UK and was diverted for sale without taxes and duties being paid. The ringleader, Kevin Burrage, was jailed for 10 years.

You can listen to the full report on 5 live Investigates on Sunday, 23 December, at 21:00 GMT on BBC 5 live. Listen again via the 5 live website or by downloading the 5 live Investigates podcast.

BBC News – Business

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3-day trip becomes 3-week ordeal for 2 Jamaicans

SAN JUAN, Puerto Rico (AP) — It was supposed to be a three-day fishing trip at most. It turned into a three-week ordeal, drifting under an intense sun for hundreds of miles in the Caribbean in a small boat with a broken motor.

The two Jamaican fishermen survived by eating raw fish they caught and drinking water from melted ice they had brought to preserve their catch. The Colombian navy finally plucked them from the sea a week ago and delivered them home Saturday after treating them for severe dehydration, malnutrition and hypothermia.

Everton Gregory, 54, and John Sobah, 58, recounted their story in a telephone interview from Jamaica, while the boat owner and the men’s employer also provided details.

The men set off from Jamaica’s southeastern coast on Nov. 20. The water was glassy, the wind was calm and their boat was laden with 14 buckets of ice, 16 gallons of water and several bags of cereal, bread and fruit.

They headed to Finger Bank, a nearby sand spit 8-miles-long (13-kilometers) that is known for its abundance of fish like wahoo, tuna and mahi mahi. The owner of the 28-foot (8-meter) boat said she usually joins them on fishing trips, but she couldn’t go that afternoon.

After spending a couple of days around Finger Bank, the two men set off for home with their catch. But the boat’s engine soon died. The water was too deep to use the anchor and the current too strong to use the oars, so the boat slowly drifted away from Jamaica.

At first, the men got by on sipping the water and eating the food they brought with them. But days turned into weeks, and they began to eat the fish they had caught and drink the melted ice that had kept it fresh.

Gregory and Sobah kept eating raw fish and used a tarp to try to collect water, but the rain clouds remained at a distance.

Back home, friends and family called police and used their own boats to search the area where the men were last seen. The two fishermen work for the Florida-based nonprofit group Food for the Poor, which chartered a plane to search along Jamaica’s coast.

Marva Espuet, the owner of the boat, said she knew she had packed it with more food and water than needed for a three-day trip, but the thought provided little relief.

“If I had gone, there would have been two boats going,” said the 52-year-old woman, a longtime friend of both fishermen.

With searches proving fruitless, Sobah’s niece grew frantic, recalled Nakhle Hado, a fishing manager for Food for the Poor who helped lead the search. She “begged me that she wanted John back for Christmas,” Hado said.

Hado said some people believed the two men would never be found, but he and others didn’t give up. “My gut was telling me that they were still alive,” he said.

Hado said he had trained Gregory and Sobah on how to survive at sea.

“In case something happens, they don’t have to think twice. They know how to react,” he said. “It’s very important, their mental state.”

Gregory and Sobah finally ran out of fresh water and went several days without drink. A healthy human being can die from dehydration anywhere from three to five days without water.

Then on Dec. 12, a Colombian navy helicopter patrolling off the coast of that South American country spotted the men near Lack of Sleep cay, more than 500 miles (800 kilometers) from where they started. It took two days for a navy vessel to reach them because of bad weather. The men were hospitalized for several days at the Colombian island of San Andres before boarding a plane back home to Jamaica.

“It feels good,” Sobah told the AP in a brief phone interview after arriving.

Gregory said he had lost hope, but Sobah tried to keep him positive that they would be rescued. “I just had that belief,” Sobah said. “I believe in the Creator.”

Yet it is Gregory who plans to keep fishing despite the ordeal because he needs the job.

Sobah said he’s done. “I’m not going to go fishing again. No way.”

Latin America News Headlines – Yahoo! News

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