Top Canada court upholds anti-terrorism law in unanimous ruling

OTTAWA (Reuters) – Canada‘s Supreme Court on Friday upheld an anti-terrorism law enacted after the September 11, 2001, attacks on the United States, ruling unanimously that those who choose to engage in terrorism must “pay a very heavy price.”

The law’s constitutionality was challenged by Mohammad Momin Khawaja, convicted in Canada of terrorism for involvement with a British group that had plotted unsuccessfully to set off bombs in London.

It was also challenged by two men accused of terrorism by the United States for trying to buy missiles or weapons technology for the Sri Lankan Tamil Tigers.

The court rejected arguments that the law’s definition of terrorism was overly broad. It upheld Khawaja’s life sentence and confirmed the orders to extradite the other two to the United States.

Khawaja, a Canadian of Pakistani descent, was the first to be convicted under the law. He was sentenced in 2008 to 10-1/2 years in prison, and his sentence was then extended to life after appeal by the government.

The trial judge noted that Khawaja referred to Osama Bin Laden as “the most beloved person to me in the … whole world, after Allah.” He was found to have participated in a terrorism training camp in Pakistan and to have designed a device dubbed the “hi fi digimonster” for detonating bombs.

“The appellant was a willing participant in a terrorist group,” Supreme Court Chief Justice Beverley McLachlin wrote in the 7-0 decision, adding that he was “apparently remorseless.”

“He was committed to bringing death on all those opposed to his extremist ideology and took many steps to provide support to the group. The bomb detonators he attempted to build would have killed many civilians had his plans succeeded.”

The law applies to any act committed for a political, religious or ideological purpose with the intention of intimidating the public by causing death or serious bodily harm, or substantial property damage, or causing serious interference with an essential service.

The court also ruled that Canada can proceed to extradite two men the United States has accused of involvement with the Tamil Tigers, which waged a bloody war for independence in Sri Lanka and is considered a terrorist organization by Washington and Ottawa.

The Canadian government declined to comment on when they would be extradited.

Piratheepan Nadarajah was alleged to have tried to purchase surface-to-air missiles and AK-47 assault rifles for the Tamil Tigers from an undercover officer posing as a black-market arms dealer on Long Island, New York.

The other man, Suresh Sriskandarajah, was alleged to have helped Tamil Tigers get electronic equipment, submarine and warship design software and communications equipment.

They surrendered to the government ahead of the court decision, their lawyers said.

BEYOND ‘LEGITIMATE EXPRESSION’

The court disagreed that the federal law’s terrorism provisions had put a chilling effect on Canadians’ freedom of expression and was disproportionately broad.

“Only individuals who go well beyond the legitimate expression of a political, religious or ideological thought, belief or opinion, and instead engage in one of the serious forms of violence – or threaten one of the serious forms of violence – listed (in the law) need fear liability under the terrorism provisions of the Criminal Code,” McLachlin wrote.

She quoted with approval the appeals court decision in the Khawaja case that faulted the Ottawa trial judge’s sentence for failing to send a “clear and unmistakable message that terrorism is reprehensible and those who choose to engage in it will pay a very heavy price.”

The original sentence of 10-1/2 years does “not approach an adequate sentence for such acts,” she concluded.

Khawaja’s lawyer, Lawrence Greenspon, said it was a “terrible day” for his client and said too often people were investigated or prosecuted for their religious or political beliefs.

“It’s a … very unfortunate ruling for minorities in this country, and we’re extremely disappointed with the result,” he told reporters in the foyer of the Supreme Court.

Justice Minister Rob Nicholson said the decision was important as Canada was not immune to the threat of terrorism. “The court sent a strong message that terrorism will not be treated leniently in Canada,” he said.

The cases are Mohammad Momin Khawaja v. Her Majesty the Queen. (Ont) (34103); Suresh Sriskandarajah v. United States of America, Minister of Justice and Attorney General of Canada (34009), Piratheepan Nadarajah v. United States of America, Minister of Justice and Attorney General of Canada (34013).

(Additional reporting by Louise Egan; Editing by Jackie Frank and Xavier Briand)

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Online gambling companies struggle to clear EU hurdles

LONDON (Reuters) – A partnership stuck on Friday between bwin.party Digital Entertainment and a Belgian casino group has defused one of many disputes pitting online gambling companies against governments across Europe.

The agreement came a month after bwin.party’s co-CEO was questioned by Belgian authorities in an escalating license dispute the company said was costing it 700,000 euros ($ 916,000) in monthly revenue.

By joining forces with Belcasinos, a unit of local casino owner Group Partouche, bwin.party neatly met a requirement to have a presence in Belgium to win a license for online poker, casino and sports betting.

The agreement is a rare bright spot in a tough regulatory environment for online gambling companies across the continent.

Betting online on sports events or playing poker on the Internet are increasingly popular pastimes in Europe, where operators say they are held back by unfair and discriminatory rules in many European Union countries.

“It is not a European Union in any way, it is a patchwork of different countries who happen to be in the EU,” said Professor Leighton Vaughan Williams, director of the betting research unit at Nottingham Business School in central England.

“Different countries have different vested interests and different ideas they are trying to promote. Are they trying to protect consumers or to maximize their tax take?” he said.

The 27 EU member states retain the right to regulate their gambling sectors as they see fit, but rules must comply with EU law, broadly meaning they must be consistent and proportionate.

Some companies are scaling back activities in European markets where, they say, regulatory risks are too high or tax rates are punitive.

Betting exchange operator Betfair for instance said this week it was halting marketing and investment in unregulated markets, including EU members Cyprus, Germany and Greece.

William Hill, Britain‘s largest bookmaker, has joined Betfair in pulling out of Greece and has also stopped offering sports betting to German residents because of a 5 percent turnover tax.

STAKES RISE

The stakes are high. Online gambling is growing at an annual rate of almost 15 percent in the EU and will be worth an estimated 13 billion euros ($ 17 billion) by 2015, according to EU figures.

The European Commission, the EU’s executive, stepped in to the debate in October when it published a medium-term plan to clarify regulations and promote cooperation between member states, ruling out EU-wide legislation for the time being.

“All citizens must be adequately protected, money laundering and fraud must be prevented, sport must be safeguarded against betting-related match-fixing and national rules must comply with EU law,” Internal Market and Services Commissioner Michel Barnier said, setting out his approach.

The online operators accuse the European Commission of failing to follow through properly on complaints lodged about regulation in no fewer than 20 or the 27 EU member states.

Barnier has written to member states accused of breaching EU law in the way they handle gambling, seeking an update on the situation by the end of the year.

However, the industry questions whether the EU will go into battle over gambling when it is facing so many other problems.

“They will chip away at some of the most blatant ones,” said Clive Hawkswood, chief executive of trade body the Remote Gambling Association. “What we really need is for them to take some to the European Court and take enforcement action.”

BRITISH TAXES

Gambling companies themselves have taken advantage of different tax regimes where they work in their favor.

This is illustrated in Britain, historically the biggest betting market in Europe and a place with a well-developed gambling culture where bookmakers have operated in town centers for 50 years.

In recent years, most betting companies have moved their British online betting operations to Britain’s overseas territory of Gibraltar. There they are sheltered from a 15 percent tax on gross profit faced by operators based in Britain.

New legislation will close off that loophole after 2014. The shift to a taxation model based on the location of the consumer was expected to cost gambling companies as much as 270 million pounds ($ 435 million) by 2016-17.

Analyst Nick Batram at brokerage Peel Hunt said smaller players would likely be picked off because of the impact of higher tax and regulatory burdens across Europe.

“It is getting more complicated and more expensive. There is more change afoot but it should ultimately play into the hands of the better-capitalized companies.”

In that vein, William Hill has provisionally agreed a 485 million pound takeover of smaller rival Sportingbet, keen to get its hands on the company’s regulated Australian betting business.

“I think there is a lot more M&A activity to come,” said Batram.

(Additional reporting by Rosalba O’Brien; Editing by David Holmes)

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Sally Struthers enters not guilty plea for DUI

YORK, Maine (AP) — Sally Struthers has entered a not guilty plea on charges she drove drunk in Maine, where she was performing in a musical.

The Portland Press Herald (http://bit.ly/XleJBq) reports the 65-year-old Struthers did not appear in York District Court on Thursday, and entered the plea through her lawyer.

Police arrested Struthers on Sept. 12 on U.S. Route 1 in the resort town Ogunquit (oh-GUHNG’-kwit). She was charged with criminal operating under the influence.

Struthers is best known for her role as Gloria Stivic in the 1970s TV sitcom “All in the Family.” She had been performing at the Ogunquit Playhouse in the musical “9 to 5.”

Struthers is scheduled to appear in court on Feb. 13 for a bench trial.

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Information from: Portland Press Herald, http://www.pressherald.com

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US faces task of running dozens of health exchanges

WASHINGTON (Reuters) – Fourteen U.S. states and the District of Columbia so far have told the federal government they plan to operate healthcare exchanges under President Barack Obama‘s reform law, leaving Washington with the daunting task of creating online marketplaces for at least two-thirds of the country.

On the eve of a federal deadline for states to say whether they will run their own exchanges, a top U.S. healthcare policy official told lawmakers that the exchanges will start enrolling eligible families starting on October 1, 2013.

“I am confident that states and the federal government will be ready in ten months, when consumers in all states can begin to apply,” Gary Cohen, director of the Center for Consumer Information and Insurance Oversight, told a health oversight panel in the U.S. House of Representatives.

Cohen, whose agency is part of the U.S. Department of Health and Human Services (HHS), was among federal officials who testified alongside state health authorities at a hearing of the House Energy and Commerce Subcommittee on Health.

In written testimony, Cohen said 15 states have told the administration they will operate their own exchanges. He later explained under questioning that the count comprises 14 states and the District of Columbia.

Separately, HHS officials confirmed the count of 14 states but could not immediately explain why Cohen’s written testimony contained a higher number.

Some experts say the number of states planning to operate their own exchanges could reach 18 by the time the deadline arrives Friday. Still, the nonpartisan Kaiser Family Foundation, which tracks healthcare issues, says only two states – Utah and Florida – remain undecided.

That would leave at least 30 states in which the administration would be required to run exchanges, a challenge that is raising questions about how successfully U.S. officials can implement a key provision of the healthcare reform law, known to opponents and advocates alike as “Obamacare”.

“I don’t envy them for the job that they have,” said Dennis Smith, a former federal healthcare official who now heads health services in Wisconsin, a state that has decided not to pursue its own exchange.

“At the end of the day, you’re trying to connect a buyer to a seller. And the fundamental things required to do that are not yet in place,” he said.

The Patient Protection and Affordable Care Act, which Obama signed into law more than 2-1/2 years ago, is expected to extend health coverage to more than 30 million uninsured Americans. Those who enroll starting in October would be covered by insurance from January 1, 2014.

POLITICAL THEATER

About half of those newly insured individuals would purchase private coverage from online exchanges at federally subsidized rates. Ultimately, the number of people finding coverage through exchanges is expected to reach 26 million, according to the nonpartisan Congressional Budget Office.

The remainder would be covered by expanding the Medicaid program for the poor to cover all adults earning up to 133 percent of the federal poverty level, or about $ 15,000 for individuals and $ 30,600 for a family of four.

Thursday’s hearing provided a political stage for partisan rhetoric about Obama’s health reforms, which have survived repeated Republican repeal efforts, a nail-biting consideration by the Supreme Court and the Presidential election campaign.

Republicans and state officials from Republican-led states complained about compliance costs and accused HHS of delaying the release of vital details and rules needed to move forward on the exchanges and on the planned Medicaid expansion.

“The uncertain regulatory environment and the overall lack of response from HHS are not encouraging the states or the health plans to move forward,” said Representative Michael Burgess, a Texas Republican.

In response, Congressional Democrats and their state allies stressed the law’s benefits for senior citizens, protections for young adults and the sick, and the prospective economic benefits from an expected influx of billions of dollars in federal money.

“The (Republican) move now is to delay implementation under the guise of lack of information,” said Representative Frank Pallone, a New Jersey Democrat.

“The world in fact is not coming to an end,” he added. “The nation will be better because of the Affordable Care Act.”

States that don’t run their own exchanges would opt for one of two alternatives: a federally facilitated exchange that requires minimal state participation, or a federal partnership exchange in which states help by performing certain duties.

Kaiser Family Foundation expects six states to choose the partnership option and two dozen to opt for federally facilitated exchanges. Cohen said the count so far is four partnerships and seven facilitated exchanges.

States have until February 15 to say whether they intend to seek a federal partnership exchange. Four have done so already, Cohen said.

The administration will have to engineer an information technology system capable of processing operations in a way that meet the needs of healthcare consumers in different states.

Experts say the biggest challenge will likely be providing adequate customer service to handle enrollment, as well as fielding a technology system capable of interfacing seamlessly with the system of each state government.

Cohen told the panel the administration is building a website with interactive capabilities and a call center and has begun testing a data services hub to determine eligibility.

(Reporting by David Morgan; Editing by Ros Krasny, Jilian Mincer, Nick Zieminski and David Gregorio)

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Construction output decline slows

14 December 2012 Last updated at 05:52 ET

Output in the UK construction industry fell in October, down 5.1% from the same month last year, according to the Office for National Statistics (ONS).

Compared with the previous month, construction output rose 8.3%.

Construction is a component of gross domestic product (GDP), which measures the value of everything produced in the economy.

This figure is the first contributor to the eagerly-awaited fourth quarter GDP, which will be released next month.

The year-on-year construction output figure has fallen for 14 of the past 15 months, although October’s fall was the smallest decline since February.

Output had dropped 13.2% in September, compared with September 2011.

Figures for each of the 12 previous months were revised by the ONS, although it said the revisions had had a “negligible” effect on GDP figures.

The month-on-month growth mirrors the result of the Markit/CIPS Construction Purchasing Managers’ Index for October, which was released last month and suggested fractional growth in the sector.

At the time, Markit economist Tim Moore said: “The bigger picture remains bleak,”

The Office for Budget Responsibility has predicted that the UK economy will contract slightly in the whole of 2012, which would mean a negative reading for GDP for the last three months of the year.

The construction sector reading has a relatively small weighting in the GDP figures.

It is outweighed by the service sector, the October figures for which are due to be released on Friday 21 December.

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UPDATE 3-Cricket-Hughes shines as Australia reach 299-4

* Hughes falls just short of century

* Clarke and Hussey combine for 101

* Welegedera takes 3-99 (Adds quotes)

HOBART, Dec 14 (Reuters) – Phil Hughes made a solid 86 on his return to test cricket before Michael Clarke and Mike Hussey took up the running and steered Australia to 299 for four at close of play on the first day of the first test against Sri Lanka on Friday.

Hughes was the only batsmen to fall in the final session, lasting only a couple of overs after lunch before being bowled through the gate by Chanaka Welegedera, giving the Sri Lankan seamer his third wicket of the day.

Clarke, who had made 70 not out, and Hussey, unbeaten on 37, batted through the remainder of the day and if the evidence of their prolific partnerships in the recent series against South Africa is anything to go by, will take some shifting.

“Overall, 299 for four puts the ball in our court,” said Hughes. “I thought we were outstanding today. It really gives us momentum going into tomorrow.”

Sri Lanka’s bowlers, dubbed this week as the worst pace attack ever to tour Australia by former test bowler Rodney Hogg, made life uncomfortable for the batsmen at times but struggled for any real penetration under cloudy skies at Bellerive Oval.

“I think we showed we can put Australia under pressure and hopefully the bowlers will be fresh in the morning and we can get them out for less than 100 additional runs,” said Welegedera, who finished with 3-99 on his return after nine months out injured.

Clarke, who passed 1,400 runs for the year, has now put on 731 runs in partnerships with Hussey in the last four tests and will be looking to plunder a few more on Saturday despite taking a couple of painful knocks to his legs.

Friday, however, belonged to Hughes.

The lefthander was recalled to the side on the back of good domestic form following the retirement of Ricky Ponting at the end of the series against the Proteas.

The 24-year-old reached his fourth test half century with a square drive for three runs and then initially accelerated towards a century, most notably with an ugly but effective slog for six off spinner Rangana Herath.

CALAMITOUS RUNOUT

On the ground where his second spell as a test batsman ended amid questions about his technique after two failures against New Zealand last year, Hughes scored eight fours and one six in his 166-ball knock before Welegedera struck with a superb ball.

“It was nice to get a few,” he said. “It would have been nice to get a few more and get into three figures.”

Australia had lost openers Ed Cowan (four) and David Warner in the opening session, the latter run out for 57 on the stroke of lunch after a calamitous misunderstanding with Hughes.

Shane Watson, dropping down to fourth in the batting order to allow Hughes to come in at number three, followed them to the pavilion for 30 shortly before tea, the victim of an exceptional diving catch in the slips by skipper Mahela Jayawardene.

That was a second wicket for Welegedera and a measure of redemption for the bowler after he had Hughes caught behind for 77 only for the umpire to call a no ball.

Welegedera had also made the early breakthrough for the tourists when Cowan tried to pull a short delivery only for the ball to catch him high on the bat and carry to mid-on where Shaminda Eranga took a simple catch.

It could have been even better for the Sri Lankans, who were only centimetres away from the perfect start to the morning after Clarke had won the toss and elected to bat.

Cowan edged the second delivery of the day from Nuwan Kulasekara to the slips but Angelo Mathews was just unable to get his hands to it, despite an athletic dive. (Editing by Peter Rutherford)

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iPad mini deemed a ‘game changer,’ outgrew Kindle Fire by nearly 50%

Smaller tablets in the 7-inch range have been on the market for more than two years now, but it looks like it took Apple (AAPL) just one month to vault to the top of the category. Mobile advertising firm Millennial Media recently published the findings of a study pitting the iPad mini against Amazon’s (AMZN) popular Kindle Fire, which has been an extremely popular iPad alternative since it first launched last year. According to Millennial, iPad mini usage grew about 50% faster during early November than the Kindle Fire did immediately following its successful launch last year, as measured by ad impressions served by the firm’s network.

Millennial found that impressions served to the iPad mini in early November grew at an average daily rate of 28%. In the weeks following the Kindle Fire’s launch last year, usage of Amazon’s tablet grew roughly 19% each day.

“In the first weeks after the iPad mini went on sale, we saw an average daily growth in impressions of 28 percent. Last holiday season, Amazon launched the Kindle Fire to much anticipation, Millennial Media’s Matt Mills wrote on the company’s blog. “As a comparison, we saw Kindle Fire impressions grow at an average daily rate of 19 percent in the first two weeks after it went on sale last year. So, by our math it looks like Apple could have itself another massive holiday season.”

Mills called the iPad mini a “game changer” and said he expects “a massive amount” of iPad mini tablets to be given as gifts this holiday season.

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Late BBC star Savile suspected of 199 crimes: UK police

LONDON (Reuters) – British television star Jimmy Savile is suspected of carrying out an unprecedented number of sex offences including 31 rapes, police said on Wednesday in their most comprehensive review of the scandal.

Revelations about Savile, who died last year, provoked outrage across Britain where he had been a household name since the 1960s.

News of Savile’s crimes threw his main employer the BBC into turmoil, led to resignation of the BBC’s director general just 54 days into his job and provoked awkward questions for his predecessor Mark Thompson, who recently took over as chief executive of the New York Times.

Detectives launched their inquiry 10 weeks ago following reports in a TV documentary that Savile had abused young girls on BBC premises and at hospitals where he did charity work.

Since then, 450 people had come forward with allegations about Savile, mostly dealing with sexual abuse, said police.

Savile was now a suspect in 199 crimes, the vast majority of them involving children or young people, the force added.

“These levels of reporting of sexual abuse against a single individual are unprecedented in the UK,” the police said in a statement.

Detectives have been examining three categories of alleged offences: those involving only Savile, which make up the majority of cases; those involving Savile and others; and those which had no direct link to Savile.

So far six men have been arrested and another questioned by London police.

Those quizzed include Max Clifford, Britain’s most high-profile celebrity publicist, former BBC radio DJ Dave Lee Travis and former glam-rock singer Gary Glitter.

They have all denied any wrongdoing.

“Our officers will continue to investigate allegations made against those who potentially can be brought to justice,” the police statement said. “More arrests nationally will be forthcoming.”

A one-time professional wrestler with a penchant for garish outfits, Savile became famous as a pioneering DJ in the 1960s before hosting prime-time TV shows until the 1990s.

He ran about 200 marathons for charity, raising tens of millions of pounds for hospitals, leading some to give him keys to rooms where victims now allege they were abused.

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Lilly stops rheumatoid arthritis trial for lack of efficacy

(Reuters) – Eli Lilly and Co said it will stop one of three late-stage trials of its rheumatoid arthritis (RA) drug tabalumab due to insufficient efficacy.

The decision to stop the trial came after an interim futility analysis of the study, called FLEX-M.

The trial was testing the drug in patients with moderate-to-severe RA who had an inadequate response to methotrexate therapy, which is a standard RA treatment.

The decision was not based on safety concerns, and patients currently enrolled in other tabalumab RA studies will continue treatment, Lilly said.

However, the company said it was suspending enrollment of new patients in the RA program until additional analysis from other ongoing RA studies is completed in early 2013.

The study discontinuation is expected to result in an after-tax charge of about 2 cents per share in the fourth quarter.

“The results of this study were unexpected given the data generated in earlier Phase II clinical studies of tabalumab,” Lilly’s vice president of autoimmune product development, Eiry Roberts, said.

Lilly is working on another RA drug called baricitinib, which is also getting tested for psoriasis and diabetic nephropathy.

Another autoimmune disorder drug in the company’s pipeline is ixekizumab — being tested for psoriasis and psoriatic arthritis.

(Reporting by Esha Dey in Bangalore; Editing by Joyjeet Das)

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Airlines: 2013 profits to rise thanks to cost cuts

GENEVA (AP) — Airlines‘ profits will improve to $ 8.4 billion in 2013, mainly reflecting cost cuts and restructuring measures taken to compensate for stalling economic growth, the global industry‘s trade group forecast Thursday.

For 2012, the industry anticipates net profits of $ 6.7 billion based on strong second and third quarters — particularly for larger carriers with bigger economies of scale — despite high fuel prices and weaker demand.

But the 2013 results would still be below the $ 8.8 billion earned in 2011 and $ 15.8 billion in 2010. The net profit margin, at 1 percent, would also be well below the 7 to 8 percent officials say is needed to recover capital costs.

The International Air Transport Association‘s annual review focused on the impact of annual world economic growth falling below 2 percent and Brent crude oil trading at $ 109.5 a barrel.

“Airlines have adjusted to this difficult environment through improving efficiency and restructuring,” said Tony Tyler, chief executive of the Geneva-based global trade group.

Tyler told reporters in Geneva that airlines’ financial performance hinged partly on their size.

“Economies of scale are helping larger airlines to cope much better with the difficult environment than small and medium-sized carriers which continue to struggle,” he said.

IATA, whose 240 member airlines carry 84 percent of all passengers and cargo, said the industry’s overall revenue in 2013 is expected to rise to $ 659 billion from $ 637 billion this year, while costs will go up to $ 640 billion from $ 623 billion.

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