Bottled water industry is bordering on the immoral, says UK minister

Lewis Smith, The Times 16 Feb 08;

Drinking bottled water is almost morally indefensible, a government minister has suggested in a scathing attack on the industry.

Phil Woolas, the Environment Minister, said it was daft that six million litres of bottled water were drunk every day in Britain when safe tap water was universally and cheaply available. His comments echoed concerns among environmentalists, who believe that the packaging, transportation and disposal of bottled water products creates unnecessarily high carbon-dioxide emissions.

But they provoked a furious response from the industry, which is worth £2 billion annually. Representatives demanded an immediate retraction of his remarks.

Mr Woolas has further riled the industry by giving his backing to a campaign to persuade the public to use the tap as their primary source of drinking water.

Next week Thames Water, supported by Friends of the Earth and Mr Woolas, will start a campaign to persuade restaurants, pubs and hotels to make tap water more easily available to customers. By persuading people to switch back to tap water the organisers of the initiative hope to reduce the impact on the environment by cutting out the carbon-dioxide emissions from transportation and manufacture of the bottles.

Bottled water has been calculated to have a carbon footprint more than several hundred times bigger than tap water for some brands. Many bottles are transported thousands of miles to get to Britain from countries including the United States and Fiji.

The minister was particularly concerned about water being imported to Britain because of the potential damage to supplies in other countries.

“It borders on morally being unacceptable to spend hundreds of millions of pounds on bottled water when we have pure drinking water, when at the same time one of the crises that is facing the world is the supply of water,” he told the BBC Panorama programme.

“There are many countries in the world who unfortunately haven’t got pure tap water. We should be concentrating our efforts on putting that right in my opinion.”

He received unexpected backing from Peter Ainsworth, the Shadow Environment Secretary, who agreed that the industry and consumers had big moral questions to answer.

“I don’t think Phil Woolas is wrong,” he said. “Huge amounts are imported from other countries — some now ludicrously from the Far East. This is an ecological nightmare and it doesn’t make economic sense either. It certainly raises questions about the basis on which we have constructed our economic lives. By any rational standard it’s crazy to be importing water from countries far away when there’s perfectly good water in our taps.

“It looks like the epiphany of any unsustainable human activity. I think as consumers we should consider the impact we have on the environment. If they think about it they might change their behaviour.”

Steve Webb, the Liberal Democrat environment spokesman, said that the environmental impacts caused by the bottled-water industry were sufficiently worrying that the Government should introduce taxes to pay for damage to be put right. Taxes, either directly on the sales of each bottle or through mechanisms such as landfill tax, would put pressure on consumers to change their behaviour.

A Swedish study calculated that the environmental impact of bottled water was 90 to 1,000 times greater than tap water, and could be higher.

Jill Ardagh, director-general of the Bottled Water Information Office, led the industry’s angry response to the minister’s remarks. “Mr Woolas is clearly ill-informed about bottled water and the role it has to play in society, either in this country or other parts of the world,” she said.

She said that an estimated 20,000 jobs depended on the bottled water trade and demanded that he retract his comments.


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Afghanistan's coldest winter kills over 900

Reuters 16 Feb 08;

KABUL (Reuters) - The death toll from Afghanistan's harshest winter in recent living memory has hit 926, an official said on Saturday, adding the figure could rise further as access to remote areas improves with the thawing of snow.

More than 316,000 cattle had perished since the onset of winter in mid December, Noor Padshah Kohistani of the National Disaster Management Commission said.

"The figure for human losses stands at 926 today. It could go higher, for roads have been reopened and we will find unreported fatalities," he said.

Nearly half of the victims came from western areas and where more than 90 people have had their fingers or toes amputated because of frostbite.

A special hospital is dealing with frostbite victims in the western city of Herat.

Apart from human losses, the deaths of cattle are regarded as a huge loss for Afghanistan, an agricultural country that largely relies on foreign aid.

The United Nations World Food Program last month appealed for extra food assistance for 2.55 million Afghans until the next harvest in June.

More snow is expected in coming days in several parts of the mountainous Central Asian country which may trigger floods and avalanches.

(Reporting by Sayed Salahuddin; Editing by Sanjeev Miglani)


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UK supermarkets: "too many products and practices unhealthy, unjust and unsustainable"

Supermarkets attacked over sustainability
Paul Eccleston, The Telegraph 16 Feb 08;

The Government will have to crackdown on the big High Street supermarkets if it is to tackle some of the biggest challenges facing Britain today, according to a new report.

It will fail to meet key targets on health, waste, climate change and fair trade unless it harnesses the enormous power of the supermarkets, the Sustainable Development Commission (SDC) claims.

In its report Green, Healthy and Fair the SDC says too many supermarket products and practices are unhealthy, unjust and unsustainable.

Supermarkets as the gatekeepers of the food system were in a powerful position to create a greener, healthier, fairer food system through their influence on supply chains, consumer behaviour and their own operations.

The report says the government must develop a much clearer long-term strategy and work closely with the supermarkets if the challenges on health, the environment and fair trade are to be met.

The SDC's review of the government's role in supporting sustainable supermarket food finds that:

* 5-a-day public health messages cannot succeed while high-calorie, low nutrient processed foods are promoted aggressively, making fresh produce appear expensive and unappealing.

* Obesity and waste are being fuelled by multi-buy promotions, over-packaging and non-recyclable packaging

* Climate change policies aimed at reducing emissions from supermarket operations fail to address transport issues involving food deliveries and customer car use.

The SDC, which advises the Government on sustainability, says more than 70 per cent of UK groceries are sold by four supermarket chains - Tesco, Sainsbury's, Asda and Morrisons.

The food chain contributes around one-fifth of total UK greenhouse gas emissions and is a major source of avoidable waste.

Obesity and overweight currently costs the economy a staggering £10 billion a year and is forecast to reach £50 billion by 2050.2

Many peoples' livelihoods in rural communities, in the UK and in the developing world, depend upon getting access to, and a fair price from, the UK's food system.

While the Government maintained an official 'hands-off' approach to supermarkets, the SDC study found 19 Whitehall departments with almost 100 policy responsibilities related to supermarkets and food.

Conflicting policies between departments made it impossible to achieve targets. As an example the Department of Health advice to eat more fish was cutting across attempts to preserve endangered fish stocks.

And supermarkets and consumers were confused over whether they should buy 'local' produce or help poor farmers in Kenya by buying airfreighted green beans.

Professor Tim Lang, Commissioner at the SDC, said: "Government cannot resolve the problems of obesity, waste or climate change alone. Given the enormous influence wielded by supermarkets, working with them effectively is essential.

"There are many areas where the government and retailers are already working together, but government needs to be more ambitious. With public scrutiny of retailers' behaviour increasing, many supermarkets are keen to work with government to develop a green, healthy and fair food system.

"In fact, our research with supermarkets has shown that in areas such as climate change or recycling policy, they are often frustrated by the lack of clarity or long-term strategy on which they can plan for the future."

Key areas identified in the study included:

Waste

The UK has one of the worst records on dumping waste in landfill in Europe, and UK homes produce 5.2m tonnes of food packaging waste and 6.7m tonnes of food waste every year. Current packaging legislation is vague and poorly enforced.

It says the government must develop an ambitious packaging strategy to follow its waste strategy

Nutrition and obesity

Processed food is a key factor in obesity and diet-related diseases such as cancer, diabetes, heart disease and stroke. A healthy and seasonal diet, rich in fruit and vegetables, and containing less processed food and meat is better for people and the planet, leading to lower greenhouse gas emissions and less impact on ecosystems.

The report says the Government must use its influence to ensure supermarkets reformulate products and to shift the balance of promotions towards healthier products. A single, mandatory front-of-pack system of labelling is also essential.

Climate change

The food industry is the largest contributor of greenhouse gas accounting for 20 per cent of all UK emissions.

The report says the Government must set a clear agenda for reducing emissions across the whole food chain through leading to at least 60 per cent reductions by 2050.

Fair supply chains

The supermarkets have a poor record of treating suppliers fairly and the Office of Fair Trading Code of Practice is weak and not fit for purpose.

The report says the government should safeguard fairness in supply and an enforceable definition of 'local' food brought and promote fair trade and environmental sustainability.

Ecosystems

Demands of the food system were causing deforestation, devastation of fish stocks and soil degradation and even in the UK, intensive agriculture was affecting biodiversity and contributing to the destruction of hedgerows and wildlife. The SDC wants the government to draw up a system of universal sustainability standards for food production.

Water

2,000 litres of water was needed to produce the food consumed daily by the average and climate change and increased demand meant that water could no longer be considered a low-cost resource. A 'water footprint' system was needed to audit embedded water in products and supply chains.


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Best of our wild blogs: 16 Feb 08


Aquarium "swim with whale sharks": carnival or conservation?
on the wildfilms blog

“Green Economics”: Turning Mainstream Thinking on Its Head Exploring a new paradigm for sustainable economics: A few years ago, a homeowner in Las Vegas—a place that gets maybe five inches of rainfall a year—was confronted by a water district inspector for running an illegal sprinkler in the middle of the day. The man became very angry. He said, “You people and all your stupid rules—you’re trying to turn this place into a desert!” from the Worldwatch Institute blog

Sensationalism or Science: Was the Threat of Bird Flu Overblown?
from The Daily Galaxy blog


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Singapore: Small steps to fight high oil prices

Christopher Tan, Straits Times 16 Feb 08;

WHOEVER said what goes up must come down probably did not have pump prices in mind.

When crude oil prices rise, pump prices follow suit shortly. But when crude prices soften, oil firms are painfully slow in lowering pump rates.

That has been one of the perennial peeves of motorists here. To add insult to injury, oil firms cite higher oil prices when they raise pump prices, but later say crude oil is but one of several factors influencing petrol prices.

What can consumers do?

Unlike providers of other goods and services which are sometimes 'sticky downwards' (like home loans), the oligopolistic oil industry knows the customer does not have the luxury of choice. After all, oil firms today price their fuels identically - at least in Singapore.

Even Singapore Petroleum Co, which offered lower prices when it entered the petrol station business in the 1980s, stopped the practice soon after it grew in size by acquiring British Petroleum's retail network here in 2004.

Pump prices hit record levels of around $2 a litre last November. They have stayed at that level despite weaker demand for motoring fuels in China and America - two of the world's biggest petrol consumers - in recent weeks.

Last month, the Consumers Association of Singapore (Case) wrote to the oil companies to ask why pump prices have not been adjusted to reflect the recent downtrend in crude prices. It did not receive a reply.

The man on the street can identify with Case's powerlessness. He can rant and rave all he wants, but there is next to nothing he can do about how fuels are priced. Last month, some netizens here proposed a 'No Petrol Day' on Jan 24. The idea was to stop filling up for a day, so as to create a surplus in the fuel inventory and thus force oil companies to lower prices. It did not take off.

There is also precious little industries and businesses can do about the price of oil and the prices of products pegged to oil prices, like natural gas and cooking gas. Natural gas is used chiefly for power generation here, and its price affects utility bills.

Cooking gas, which is liquefied petroleum gas here, has gone from $18 per cylinder (12.7kg home size) to over $30 in less than five years. Housewives grin and bear it.

In essence, there isn't really much anyone in the world can do about runaway oil prices. In some ways, not even the oil companies can do much.

Oil prices are no longer influenced solely by fundamental factors such as supply and demand. The world is not experiencing an oil shortage.

Instead, speculative buying and selling by traders and hedge funds have been largely responsible for pushing crude from under US$30 a barrel in 2003 to nearly US$100 at end of last year.

Oil producers and oil firms are not exactly complaining though. The record crude prices have been excellent for their bottom lines. American oil giant ExxonMobil, for instance, declared net incomes of US$39.5 billion (S$56 million) and US$40.6 billion for 2006 and 2007 respectively.

That is after paying taxes of US$28 billion and US$30 billion respectively - amounts not many national treasuries can turn their noses up at.

Despite the record prices, though, demand for oil has been fairly inelastic. Oil producers know that. And therein lies the main problem.

As simplistic as it sounds, the world is just too dependent on oil. The G-7 has itself to blame for not taking the lead in weaning the world off fossil fuels - despite scares such as the 1970s oil crisis. Hence it is as much of a hostage today to oil producers as it was 40 years ago - perhaps even more so.

According to the US Energy Information Association, the world consumed 207 million billion Btu of energy in 1970. Today, that figure has more than doubled. Yet, renewables (such as hydro, wind, solar and thermal energy) account for just 7 per cent or so of total consumption.

The impetus to increase the share of renewables in the energy pie is gathering momentum, though. The private sector has much to offer, if examples set by Sir Richard Branson are anything to go by.

The British entrepreneur has pledged US$3 billion to fight global warming; and is offering a US$25 million prize to anyone who can come up with a way to remove one billion tonnes of carbon dioxide a year from the atmosphere.

Here in Singapore, the Government has partnered Britain's Rolls-Royce plc in a $100 million venture to invent fuel cell generators. It is the biggest endeavour here to reduce oil dependence.

A lot more can be done, of course, and a lot more should be done. It is about time the world kicked its centuries-old fossil fuel habit.

But back to the man in the street. Is he really powerless? Not really. He can cut back on air-con use at night, plan car journeys better and switch to energy-efficient appliances. He may not be able to bring the oil firms to their knees, but with a little effort, he can cut back on his personal expenditure.


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Government to help Singaporeans cope with rising prices

Channel NewsAsia 15 Feb 08;

SINGAPORE : Finance Minister Tharman Shanmugaratnam warned that inflation remains a major uncertainty for the Singapore economy.

Delivering the Budget in Parliament on Friday, he also announced that the Republic expects to achieve a Budget surplus of S$6.4b for fiscal year 2007.

He added: ""We seek to moderate imported inflation through our Singapore dollar exchange rate policy. There is a limit to how fast the Singapore dollar can appreciate without hurting our economic performance and growth, and eventually causing wages to fall. An overly strong Singapore dollar can bring inflation down, but at the cost of lower growth and higher unemployment."

"This is why, while we can mitigate imported inflation through MAS's exchange rate policy, we cannot insulate ourselves completely from the effects of global inflation."

The Finance Minister spent a good part of his speech addressing the inflation issue, examining the factors contributing to this and also spelled out what the government will do to help Singaporeans cope.

The headline Consumer Price Index - or CPI - hit 4.4 percent in December but averaged 2 percent last year.

However the CPI is forecast to hit 4.5 percent to 5.5 percent this year.

If the barometer of inflation, the CPI, hits 4.5 to 5.5 percent this year, it will be the country's highest full year inflation rate since 1981.

Mr Tharman said the inflationary pressures arose mainly from high prices for food and oil due to the strong demand worldwide.

He added that the government would step up efforts to help Singaporeans cope such as diversifying food sources.

He did admit though that there are local factors for the rise in the CPI, mainly the rise in the annual value of homes.

But he stressed this is one form of inflation that would not hit Singaporeans' pockets since most own their homes.

As for the GST, Mr Tharman noted that this only caused a one-off increase in prices, and does not result in continuing price increases.

He said: "In view of Singapore's good economic performance over the past year and the strong fiscal position, the Government has decided to share some of the nation's surplus with all Singaporeans.

"These surpluses will be distributed in the form of Growth Dividends, additional Post-Secondary Education Account (PSEA) top-up, Medisave Account top-up and Personal Income Tax rebates."

Mr Tharman said a larger portion of the benefits will be distributed to older Singaporeans and the lower and middle income groups, with certain top-ups directed towards helping Singaporeans with their education and healthcare needs.

In addition to the new initiatives announced in Budget 2008, households will also continue to receive benefits from the various schemes announced in Budget 2007.

He also noted: "The S$4 billion GST Offset Package will continue to help Singaporeans cope with the increase in GST through various payouts and rebates to eligible individuals and households over the next 4 years, from FY2008 to FY2011. The Workfare Income Supplement (WIS) scheme continues to supplement the wages and savings of workers, and increase the take-home pay and employability of older lower wage workers." - CNA/ch

Budget to tame the twin monsters
Middle class mentioned 16 times in Tharman's one-and-a-half hour speech
Christie Loh, Today Online 16 Feb 08;

CALL it a perfect storm, a double whammy, even twin monsters. The head-on collision of high inflation and a slowing economy is a rare occurrence that last hit helpless governments worldwide during the 1970s.

Now, as it sets upon the world again, Singapore's Finance Minister is fighting back with long-term measures to make the country an irresistible, top-notch global city, and a basket of instant goodies to keep Singapore a cohesive society.

For the people, there will be direct cash payments as rewards for a good year, personal income tax rebates and, to the delight of wealthy individuals, an answer at last to long-running calls for the scrapping of estate duty known colloquially as "death taxes".

Businesses are looking at carrots aimed at encouraging innovation and research and development. Then, there is the commitment to free up prime space occupied by government agencies for office space-hungry enterprises.

"We are able to deal with immediate problems and weather any short-term difficulties that Singapore might face ... because our fundamentals are strong, we continue to attract major new investments and we expect employment to remain high," Finance Minister Tharman Shanmugaratnam said in Parliament on Friday in his Budget speech titled "Creating a top- quality economy, Building a resilient community".

His financial muscle came partly from the white-hot property market that raked in a record collection of stamp duty, helping to bump up last year's Budget surplus to a 13-year high at $6.35 billion.

The centrepiece in the hamper — which totalled $5.4 billion and was double the special transfers in 2007 — were the Growth Dividends, cash payments varying from $100 to $700 that all Singaporeans aged 21 and above will receive in their bank accounts come April and October.

But what was absent from the Budget was also much talked about.

Analysts' expectations of a personal income tax cut were not met. Big businesses bemoaned the lack of incentives for them, with some disappointed that the corporate tax rate was not reduced further after last year's cut of 2 percentage points to 18 per cent.

Neither were there any hoped-for carrots for companies to go green. Most of the aid rolled out will benefit start-ups and small companies struggling with rising costs, besides encouraging R&D, which usually takes years to pay off.

On the fight-inflation front, if anyone had hoped for outright controls on food prices — which were a big reason why inflation shot up to a 25-year high of 4.4 per cent in December — there was none.

Instead, the Government believes in working on the supply side and using other indirect tools.

As Singapore's inflation is not due to domestic factors but to high global prices, Mr Shanmugaratnam said the Government would continue trying to mitigate the imported pressure via three ways: Allowing the Singapore dollar to appreciate modestly, stepping up the diversification of food sources and helping Singaporeans to own their homes, whose appreciation is generally protected against inflation.

These buffers aside, the reality is that the island cannot totally insulate itself against inflation.

To the Government, the ultimate vitamin is a competitive economy and good growth. "This is the best offset to global inflation, which will be with us not just for a few months but possibly a few years," said Mr Shanmugaratnam, who took over the portfolio of Finance Minister from Prime Minister Lee Hsien Loong in December.

This strategy is tied to encouraging Singaporeans to stay employed and to upgrade their skills. In other words, groom a first-class workforce, which has always been the nation's way of dealing with economic vagaries including globalisation and downturns.

Therefore, it is no surprise that this Budget continues to contain measures that provide education opportunities — seen as an effective social leveller — for all Singaporeans regardless of their financial situation.

MIDDLE CLASS GETS SPECIAL MENTION

What is worth highlighting is the Budget's unprecedented attention to middle-class concerns.

After years of complaints that this sandwiched group is left to fend for itself in an environment of rising living costs despite paying taxes, Mr Shanmugaratnam mentioned the word "middle-income" 16 times, as opposed to the three times in his maiden Budget speech last year.

For instance, he said the extension of the Ministry of Education Bursary Scheme for students would benefit middle-income Singaporeans.

So will the immediate abolition of estate duty, because the low exemption limits "tend to affect our middle and upper-middle-income estates disproportionately compared to wealthier ones".

As for help for them to cope with inflation, Mr Shanmugaratnam believes he has extended a helping hand through the growth dividends, which middle-income Singaporeans would receive more of than the richer folks, and the three-year distribution of Goods and Services Tax (GST) credits, which started last year when GST rose to 7 per cent.

"Both these exercises give the middle-income group support at a time when they, too, face higher costs of living," he said.

The question is, will they satisfy the middle class?

Their pain — and especially that of the low-income — will worsen this year, as inflation is forecast to come in between 4.5 and 5.5 per cent, which is much higher than last year's 2 per cent.

But Mr Shanmugaratnam made it clear that quick-fix measures such as handouts will not be the way.

"Whether we succeed as an economy and whether we remain a resilient society, will not depend on how much we hand out, how much we top up each year or how large the bonuses are," he said. "We will ultimately succeed and remain a country that all Singaporeans feel proud of if we continue to be a place where every Singaporean can aspire, where there is opportunity to develop every skill and talent, and where everyone does his utmost to do better and surprise with his abilities."

Five-pronged strategy to fight inflation
A key problem is imported inflation, especially of food and oil
Ronnie Lim, Business Times 16 Feb 08;

SINGAPORE will adopt a five-prong strategy to tackle inflation which is expected to stay high at 4.5-5.5 per cent this year, more so especially in the first half, said Finance Minister Tharman Shamugaratnam.

This includes steps like diversifying the Republic's food sources and more fundamentally, keeping the economy competitive.

Inflation is a concern 'not expected to go away soon', he warned, adding that Singaporeans have to brace themselves for more cost rises.

Over the last year, global oil prices have spiked by 50 per cent, raw food prices by 55 per cent and commodity prices by 31 per cent. These have cascaded down into higher transport costs, more expensive manufactured goods, and costlier consumer foods.

'We cannot say how long it will last, but we have to expect that it will remain high, in the first half of this year especially. For example, China's worst winter in 50 years will likely add pressure to prices of certain foods in the next six months,' he added.

While last July's Goods and Services Tax (GST) increase had partly contributed to inflation, this has been compensated for by substantial GST offsets - spread over four years - for most Singaporeans, Mr Tharman said.

'The key problem we face going forward is that of imported inflation caused by high global prices, especially of food and oil.'

Outlining his five-prong anti-inflation plan, Mr Tharman said that this firstly involves the Monetary Authority of Singapore's (MAS) use of the exchange rate to moderate imported inflation.

'Had the MAS not allowed the Singapore dollar to appreciate over the last two years, our CPI inflation in the last quarter would have averaged 6.5 per cent, instead of the 4.1 per cent that was actually recorded,' he said.

However, there is a limit to this strategy as it can hurt the Republic's economic performance and growth, he warned.

An overly strong Singapore dollar can bring inflation down, but at the cost of lower growth and higher unemployment.

Secondly, Singapore is stepping up the diversification of its food sources so as to minimise spikes in the prices of imported foods.

The Agri-Food and Veterinary Authority of Singapore (AVA) is helping private importers buy from new overseas sources and the government will also continue to work with retailers to increase public awareness of cheaper food choices and substitutes.

The third way has been the government's support of home ownership, especially through the heavy subsidies provided to lower-income Singaporeans to own a home.

This insulates Singaporeans, especially retirees, from increases in rental costs which are a significant long-term concern in other countries, he said. In the US, for example, about a fifth of older Americans rent their homes, with rentals accounting for close to one-third of their monthly expenditures.

Fourthly, the government provides assistance directly to Singaporeans who face problems coping with the cost of living, such as through the Workfare Income Supplement scheme and GST Offset Package.

'This approach of helping those in need directly is better, and more sustainable than taking reflex actions such as imposing price controls on essential goods,' he said, adding that the latter will only lead to negatives like hoarding and black markets.

Finally, the government aims to keep the economy competitive and build up capabilities for strong economic growth.

'This is the best offset to global inflation - to educate and train up our people, attract new investments, create jobs, and sustain good growth of incomes for our whole population.

'If global inflation stays high, all countries will be affected by it and we will not be able to totally insulate ourselves. But there is no reason why we cannot keep growing, and keep outperforming,' he stressed.


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Indonesian government seeks fees on forest use

Agustina Wayansari, The Jakarta Post 15 Feb 08;

The government has told non-forestry companies operating in the forest to pay them compensation in a move to make those companies operate more responsibly, the Forestry Ministry said.

As mandated under a new government regulation, non-forestry firms operating in the forest are now charged with a fee of between Rp 1.2 and Rp 3 million per hectare per year, said ministry spokesperson Masyhud on Thursday.

The amount of compensation depends on their type of business and the type of land they operate and is applicable only to businesses that have entered exploitation stage, he said.

The new regulation has been effective since Feb. 4, but only appeared on the ministry's website on Thursday.

Companies in mining, oil and gas exploration, telecommunication networks, radio and television transmissions, electricity operations, water installations, and turnpike infrastructures will be among the main targets for the new regulation.

Masyhud said the government expected a total revenue of around Rp 600 billion this year from the regulation.

"It is not about how much we can get, but more to make those operating in forest land appreciate the value of the forest," Mashud said.

"We want to make businesspeople more responsible and understand that forest lands have strategic value.

"This is the first time we have asked the companies to pay.

"Besides, it is not easy to find replacement land for used forest areas," said Mayshud.

The new regulation also applies to 13 companies currently operating in protected forest, whenever they enter the exploitation stage.

Masyhud said companies carrying out open mining activities in protected areas will have to pay the highest charge, Rp 3 million per hectare per year.

The country's protected forests are supposed to be free from any exploitation and exploration activities for commercial purposes, but the 13 companies were given an exception in 2004 following a much-publicized dispute.

The companies include PT Aneka Tambang (Antam), PT Inco, PT Freeport McMoran Indonesia, PT Nusa Halmahera, PT Nataran Mining, PT Indominco Mandiri.

They were mostly operating in the eastern part of the country.

Masyhud said only three had so far entered the exploitation phase -- the Nataran Mining in Lampung, Indominco in East Kalimantan, and Antam in North Maluku.


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Hawkers still keep their low food prices

Keeping it cheap cheap
Audrey Phoon, Today Online 16 Feb 08;

The cost of ingredients is at an all-time high, but some food stall owners are still maintaining their low prices

THE last day of the Chinese New Year is around the corner and with it, the end of the festive season that swept in amid the fairy lights and frills of last year's Hari Raya Haji and Christmas celebrations.

Come Thursday, the rose-tinted glasses will have to be removed and the lid slammed on merry-making and feasting.

It's back to reality, people ... and the reality is that we'll probably be wearing some tightened belts this year.

Sadly, this has nothing to do with having a wider girth as a result of all that holiday snacking.

Inflation is at its highest since 1982, with food prices — the largest part of the consumer price index — climbing 5.5 per cent in December from a year ago.

While the least well-off consumers are typically the hardest hit by these rising costs, food-stall owners have been left winded, too.

Said Mr Tan, a hawker in his 40s who owns Soon Huat Cooked Food Stall at a hawker centre along Ang Mo Kio Avenue 4: "Some customers don't understand why stalls have raised their prices. So far, the media has only reported one food-price hike of 10 per cent. In fact, there have been three and prices of ingredients have climbed by an average of 40 per cent."

Agreeing, Wendy Tan, a manager of Kay Hua Roasted Specialist, which operates five stalls offering roasted-meat dishes, said: "Our suppliers have raised their prices three times. Everything has gone up — at one point, even the watermelons we use for our fresh fruit juice cost $1.50 per kg, when they used to be 65 cents a kg."

Unsurprising complaints, perhaps, but here's the twist: Despite the hikes, these stallholders — together with some others — are spitting in the face of inflation and keeping their fare affordable.

Smaller profits, greater satisfaction

At Mr Tan's stall, for instance, one can get Hokkien noodles for just $1.20 and nasi lemak with three to four items for $2. This is despite the fact that "a box of chicken wings used to be $36 at the start of 2007, but now costs $60". To trim costs, he and his wife — who also works at the stall — get their vegetables at wholesale prices from Pasir Panjang Market.

"If we increase our prices too much, people will get angry," Mr Tan explained in Hokkien. "Nobody will buy our food. As long as my wife and I earn a salary to support our kids, that's enough for us."

At Kay Hua, whose first outlet opened in Bukit Merah in 2006, the hikes have pushed the price of its duck dishes up by 50 cents — its first increase in two years.

However, one can still get roast chicken, pork or char siew with rice or noodles for $2. Off the menu, there are even cheaper options that include mixed vegetables with egg and rice for $1.30, or duck wings with veggies and rice for $1.80.

"What we can afford to absorb, we just let the prices of those dishes be. That's what our boss believes," said Wendy.

"We have a lot of elderly customers who can't afford a price increase."

Turning up the volume

Other stallholders are dampening the impact of the hikes — for both themselves and their customers — in different ways.

In the case of 820 Hainan Chicken Rice in Tampines Street 81, owner Tam Hwa Joon believes that profit is tied to sales volume.

His 17-year-old stall sold plates of chicken, roast pork and char siew rice at $1 (yes, you read that right) each up until four months ago, when he moved to a new space in a renovated food court. The 50-per-cent increase in rental there has forced him to raise his prices to $1.20 per plate.

"We tried pricing our chicken rice at $2 per plate before but ended up selling only six or seven chickens a day," the 43-year-old said. "Now, we sell 50 to 60 chickens per day on weekdays and more than 90 on weekends. I also get a discount from my supplier because I buy larger quantities — each chicken costs about $3.20, compared to the usual price of upwards of $4.10. That helps to keep costs down."

Poultry dealer Chan Wing Chuen agreed: "Those who sell less will definitely feel the pinch more. Some of our smaller stallholders sell fewer than 10 chickens a day at $2 per plate.

"Add the rising price of the chicken to all the other costs that are going up — they have no other choice but to increase their prices to make money."

Doing society a service

For Jayson Chan, having a good network has helped keep costs down.

The owner of 81 Mixed Veg Rice & Porridge at a Toa Payoh Lorong 7 coffee shop opened his stall in December, amid a period of ballooning prices, to offer customers a choice of two value-for-money sets: Two meat dishes and two vegetable dishes with rice, or one meat, one fish and two vegetable dishes with rice, for $2.

"If you can manage the prices of your meat and seafood, then you can cut costs," he explained.

The 37-year-old buys his seafood at wholesale prices as he has been running a seafood business for "more than 10 years" and gets his meat directly from suppliers.

He has managed to turn a profit of "about $2,000 to $3,000" since December even after paying his $2,500 monthly rental, electricity bills and four helpers.

Noting that there are many elderly retirees living in the area, Chan added: "If I can hit my target, I'll try to reduce prices even further."

Said Kay Hua's Wendy: "The people appreciate (us keeping our prices down). Some even thank us for giving them the opportunity to eat this food at such a reasonable price."

Low their prices may be, but it seems these stallholders are reaping profits and personal satisfaction in no small amounts.

Of course, this also means our stomachs can be filled and our belts thus tightened for more palatable reasons.


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Tax reduction makes diesel-powered passenger cars cheaper to own

Christopher Tan, Straits Times 16 Feb 08;

IT WILL be less punitive to own a diesel-powered passenger car from July, a development that should be a boon for European marques such as Mercedes, BMW, Audi and Volkswagen.

The Government has announced that it will reduce the supplementary tax for diesel cars, reversing a 30-year stance that has made these vehicles much costlier to own than petrol models.

The National Environment Agency (NEA) had maintained for years that diesel cars - even newer and cleaner models - produced more particulate matter, a fine soot that could cause serious respiratory ailments.

From July 1, however, diesel cars that meet the stringent Euro IV emission standard will attract a supplementary tax of $1.25 per cubic cm of its engine displacement.

For bigger cars, this works out to half or less of the previous amounts. A 1,600cc model will attract a supplementary tax of $2,000, down from $2,976 now; a 2,000cc, $2,500 from $4,856; and a 2,500cc, $3,126 from $7,200.

The new tax is subject to a minimum of $1,250 per year.

'This is certainly good news for us,' said Audi Asia- Pacific spokesman Pauline Cheah. 'Audi is a market leader in this segment. In a lot of markets, our turbodiesel cars sell very well.'

Mr Say Kwee Neng, managing director of multi-brand agent Vantage Automotive, said: 'This is very interesting for us. We have a 2.7 litre diesel Land Rover and a 2.2 litre Peugeot, among others.'

Mr Say said he would study the new scheme carefully before deciding which models to bring in.

Ms Belinda Bay, a spokesman for BMW agent Performance Motors, said the firm would 'certainly consider' offering diesel Beemers.

Mr Karsono Kwee, who owns multi-brand Trans-Eurokars group, said: 'We will probably start with diesel models of the Saab 9-3, Opel Astra and Opel Vectra.'

Diesel advocates have long been lobbying for diesel cars to be made more assessable. German car parts maker Bosch, for instance, argues that motorists in Singapore will save more than $600 million worth of fuel a year if all cars here are diesel-driven.

Singapore would also cut emissions of carbon dioxide, which causes climate change, by about 300,000 tonnes a year.

The NEA is not moved, saying even Euro IV diesel cars emit more soot and nitrogen oxide - another pollutant - than their petrol equivalents.

There is only one privately-registered diesel car in the Republic - a Mercedes owned by taxi company CityCab.

Will consumers bite now?

Businessman Leslie Chia, 43, said: 'I use a turbodiesel when I am in Germany. If it can be brought in at a competitive price, I will consider.'

Watch importer Leslie Chang, 43, said: 'Last time, when you drive a diesel car, you had to sacrifice performance. But no longer.'

However, he added that it would make economic sense 'only if you clock more than 25,000km a year'.

Petrol costs around $2 a litre before discount, versus $1.50 for diesel. Diesel typically offers 30 per cent better mileage than petrol.

A Daimler manager said diesel cars would be more attractive to fleet management companies than individuals, unless the latter spends $600 or more on fuel a month.

Road tax for clean diesel cars to be reduced from July 1

Samuel Ee, Business Times 16 Feb 08;

THE revised road tax for Euro IV diesel-engine passenger cars will only be attractive to those who travel long distances or who enjoy the powerful acceleration of such cars, say some motor distributors.

In a sign that the dirty, pollutive image of diesel vehicles is slowly changing, yesterday's Budget announced a revised special tax structure for Euro IV private diesel cars from July 1. Currently, a private diesel car which complies with the stringent Euro IV emission standard has an annual road tax four times that of a normal car. For example, the special tax of a 1,600cc diesel car in July 2008 - when road tax will be cut by 15 per cent - will be $2,972, or four times the normal road tax of $743.

But this will be changed to an absolute-dollar tax based on the engine capacity of the car, at a rate of $1.25 per cubic centimetre (cc) of engine capacity, subject to a minimum tax of $1,250.

So a 1,600cc Euro IV diesel car will pay a special tax of $2,000 - 1,600cc multiplied by $1.25 per cc - or roughly equivalent to 2.7 times its road tax.

The revision was made in recognition of the improved emissions of Euro IV diesel cars for both particulate matters and carbon dioxide, and the fuel efficiency of diesel engines.

'The current special tax on private diesel cars is too punitive, and explains why we only have one such car on the road today,' said Finance Minister Tharman Shanmugaratnam. 'The changes will narrow the difference in the cost of fuel consumption that a motorist faces, between a Euro IV car and a petrol car.'

Some car companies are already doing their sums and calculating whether it will be worthwhile importing diesel models into Singapore.

'We have to look into this further and we will make our decision after we check it in more detail,' said Volkswagen Group Singapore managing director Olaf Duebel. 'VW's diesel technology is the diesel benchmark in Europe as well as in some Asian markets.'

One consideration for Dr Duebel is that diesel models can cost as much as 25 per cent more than equivalent petrol models in Europe because VW's turbodiesel engines cost more to make.

But the savings in fuel costs and the good low-end torque from diesel power should offset this, said some observers. At $1.52 per litre, the pump price of diesel is about 45 cent less than the cheapest grade of petrol, or about 23 per cent. Diesel engines are also more efficient, consuming at least 25 per cent less than a petrol engine of equivalent displacement.

'If you drive long distances or if you own a leasing company, then a diesel passenger car will be good,' said a senior executive representing a premium Continental make. He said that in the urban context, a 2.2-litre diesel engine burns nine litre per 100km travelled. On the other hand, a 2.2-litre petrol unit will require 12.5 litres for the same distance.

As for road tax, the 2.2-litre diesel model's will be $2,750 versus $1,446 for the petrol car. This $1,304 difference works out to almost $110 extra a month for the former.

'I estimate that in Singapore, you need to travel at least 2,000km a month to make it worthwhile to buy a diesel model,' he said. 'So it all comes down to how much will it cost you per kilometre travelled.'

But there are also enthusiasts who enjoy the higher torque of the diesel-powered car, which improves acceleration and makes it more fun to drive. This group will not mind paying a premium for diesel, said the executive.

Authorised Honda distributor Kah Motor, for example, believes it is well-positioned to benefit from this revision. The Japanese car maker has a newly developed i-DTEC engine capable of meeting Euro V emission levels. This 2.2-litre unit produces 150 hp and a whopping 350 Newton-metres of torque at just 2,000 rpm.

'It is an excellent engine for powering large-class Honda cars such as the Accord and the CR-V,' said Kah Motor product manager Vincent Ng. 'With the revised road tax structure, we will now pursue the introduction of diesel engine variants for these two models.'

Distributors welcome revision to special tax on Euro-IV diesel cars
Channel NewsAsia 16 Feb 08;

SINGAPORE: Vehicle distributors have welcomed the revision to the special tax on Euro-IV diesel cars announced in the Singapore Budget speech, saying that the change makes it cheaper to own diesel cars and will open up a new market for car makers.

Presently, drivers of diesel cars pay a special tax on top of the road tax. From July, the special tax will be revised from the current four times the road tax to an absolute-dollar tax based on the engine capacity of the car, at a rate of $1.25 per cubic centimetres (cc) of engine capacity, subject to a minimum tax of $1,250.

With the revision, car owners will save between 32% and 56% on the special tax, depending on the engine capacity of the car.

This is good news for motorists like Mohammed Fairuz. He has just bought a new car but he said he would consider switching to a Euro-IV diesel-powered one in the future.

"If it's environmentally friendly....if it gives you the same performance at a cheaper rate, why not?" he said.

Dealers say diesel-powered cars, which are popular in Europe, offer a smoother ride. But some motorists have their reservations.

"There is of course a psychological barrier to diesel for most of us private consumers. We would look for petrol-driven cars first. To switch to diesel, we must be very convinced by test drives," said motorist Stanley Gan.

Honda may roll out diesel variants of its existing models in Singapore in 2010, at the earliest.

Kah Motors, which distributes Honda cars, says it is working with the research departments in Japan and Thailand to tap this new market.

Dealers say a Euro IV-compliant diesel car will cost 10 to 15 percent more than petrol-driven ones.

This, along with the additional taxes, can only be offset if the annual mileage crosses 25,000 kilometres.

"If you look at a litre of diesel and a litre of petrol, you already save 50 cents. Each litre of petrol compared to a litre of diesel, it actually gives you less fuel economy. So if you use diesel, you could gain up to 30 to 40 percent of extra mileage, so the more you drive, the more it makes sense," said Vincent Ng, product manager at Kah Motors.

The Motor Traders Association said Singaporeans will need time to get used to the concept of a diesel-powered car.

Its take-up rate will depend on how government policy is shaped.

The association added that a contention with diesel cars is that they contribute to pollution.

Environmentalists Channel NewsAsia spoke to, said currently Euro-IV diesel cars still emit a strain of pollutant.

But they expect the new Euro-V diesel vehicles to be as clean as petrol-powered ones and will also be more fuel efficient.

The new Euro V-compliant engines will be available in Europe next year. - CNA/ir


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Sea’s treasures may no longer be with us from here to eternity

Magnus Linklater, Times Online 15 Feb 08;

Six years ago I wrote an article for The Times about the destruction of the cold-water corals off the Atlantic Shelf, a virtually unexplored deep-sea wilderness 200 miles from Britain’s western coastline.

I described an ecological tragedy as far-reaching for the oceans as the impact of pesticides on the land environment revealed more than 40 years ago in Rachel Carson’s Silent Spring. Unfortunately, unlike Carson’s book, which had the effect of alerting the world to the dangers of pollution, my article had no such benefit.

Today, fleets of ocean trawlers, most of them Japanese, French and Spanish, scraping the floor of the deepest ocean basins with their heavily weighted nets, have almost completed the despoliation of this wonderful and once diverse marine paradise.

A combination of intensive fishing, sophisticated technology and some of the most destructive trawling nets devised by Man has been devastating fish stocks, ruining the rarest of cold-water coral reefs on the ocean floor and wiping out species so rare that some have not yet been properly identified.

One scientist described it recently as “one of the great extinction spasms of geological history”. Another, whom I interviewed at the time, said: “It is an unparalleled combination of greed and ignorance . . . By the time something is finally done we may well have lost for ever a major part of our maritime heritage.”

Now, despite meetings, conferences and UN resolutions, virtually nothing has been achieved. A few “boxes” of ocean have been declared off-limits, but virtually no control is exercised over them. Greenpeace, which has been monitoring the activity of deep-sea trawlers, confirmed that they were still operating freely.

The area at risk runs from the Rockall Trough, 200 miles out from the Hebrides, to the Porcupine Bank, west of Ireland. It covers two million square miles (five million square kilometres). Survey expeditions in the 19th century suggested that no animal life could exist there because it was more than 300 fathoms (550m) deep.

More recently, however, an incredible range of fish life has been identified, including blue ling, roundnose grenadier, black scabbardfish, and the most ruthlessly exploited orange roughy.

French fleets, using global positioning technology, and nets weighed down with concrete-filled tractor wheels, have been landing up to 5,000 tonnes of orange roughy a year, along with about 7,000 tonnes of blue ling, 3,500 tonnes of black scabbardfish, 10,000 tonnes of roundnose grenadier and 3,500 tonnes of shark. With no enforceable quotas, the effect has been devastating. Some experts at the Scottish Association for Marine Science estimated that in less than a decade all these species have been declared effectively in danger of extinction.

At the same time, trawl nets have been scraping up fish known as “discard species” – hauled to the surface, then dumped back into the sea. None survives. At a depth of 1,000m it is estimated that between 30 and 50 per cent of the catch is thrown back. Because these deep-water fish take many years to mature there is little chance of stocks being renewed in the foreseeable future. A whole generation of breeding stock is being effectively eliminated.

Even more devastating has been the destruction of cold-water coral reefs that may be every bit as rich – and as fragile – as South Sea coral, the decline of which has become such an urgent conservation issue. Delicate stalked glass sponges, myriad small fish and crustaceans, hermit crabs, tiny eels and anemone-like creatures have been found in the muddy depths.

The truth is that scientists have only a hazy idea of the extent of the coral and no true analysis of the biomass that exists at these depths. They fear, however, that large areas have been destroyed, and with them a food chain that stretches up to the surface of the ocean.

If Carson were alive today, she would be outraged. In The Sea Around Us, she wrote that it contained the very foundations of biology. “To stand at the edge of the sea,” she wrote, “is to have knowledge of things that are as eternal as any earthly life can be.” Eternity, sadly, is one thing that can no longer be claimed for it.


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Warmer Antarctic Might Lure Sharks Back

Andrea Thompson, LiveScience Yahoo News 15 Feb 08;

It's been 40 million years since Antarctic waters were warm enough for sharks to lurk around and feed on polar prey, but rising ocean temperatures from global warming could eventually bring the toothy predators back, a new study suggests.

Biologists at the University of Rhode Island analyzed the physiological adaptations and metabolism of sharks and other warm-water predators. Their findings indicate that a warming of just a few degrees in Antarctic waters could make the region hospitable to these species again, with potentially serious consequences to the ecosystems already dwelling there.

The findings were presented today at the annual meeting of the American Association for the Advancement of Science in Boston.

High metabolisms

Ocean-going sharks have a high metabolism rate, the researchers say, because they must constantly swim in order to aerate their gills. All that swimming takes a lot of energy. Maintaining that energy is easier in warmer waters. So while the Antarctic waters have remained chilly, sharks have been kept out of the neighborhood.

One group of sharks, though, is a little more primed than most to survive the cold . Benthic sharks - those that live on the seafloor and swim very little - have lower metabolism rates and can survive in waters that are just 45 to 50 degrees Fahrenheit (7 to 10 degrees Celsius).

But most benthic sharks are currently found in shallow temperate to tropical waters and can't swim long distances, so it is unlikely they could easily make the southbound trip on their own.

But with global warming heating things up, a southward dispersal of sharks isn't out of the question, the researchers say. The waters around the Antarctic Peninsula have increased by about 1.8 to 3.6 degrees Fahrenheit (1 to 2 degrees Celsius) in the last 50 years, which is double to triple the global average increase.

"The water only needs to remain above freezing year round for it to become habitable to some sharks, and at the rate we're going, that could happen this century," said study team member Cheryl Wilga. "Once they get there, it will completely change the ecology of the Antarctic benthic community."

Population declines

Wilga and her co-author Brad Seibel don't believe that the arrival of sharks in Antarctic waters would lead to widespread species extinction, but they could lead to dramatic changes in population numbers and the proportions of species found there.

"There are few prey-crushing predators in Antarctic waters," Wilga said. "As a result, the Antarctic seafloor has been dominated by relatively soft-bodied, slow-moving invertebrates, just as in ancient oceans prior to the evolution of shell-crushing predators," leaving the native Antarctic species defenseless against bone-crushing sharks and fish.

Shrimp, ribbon worms and brittle stars would likely be the most vulnerable species, the researchers report.


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Rediscovering the forgotten crops

BBC News 15 Feb 08;

Over the last century about 75% of the world's crop varieties have been lost, data from the UN Food and Agriculture Organization (FAO) suggests.

UN researchers say that we now rely on just three crops: wheat, rice and maize.

The fact that poorer nations are almost twice as dependent on these cereals as richer nations has led to the question: are we now too reliant on too few crops?

The Kolli Hills in Tamil Nadu, southern India, is home to about 40,000 people.

Scientists have visited the area to see if ancient traditions offer any clues to finding a way out of a future global food crisis.

Changing landscape

"First of all, I think the environment is going to be more unpredictable," Sayed Azam-Ali, professor of tropical agronomy at the University of Nottingham, UK, tells the Television Trust for the Environment's Earth Report programme.

"So we need crops that are going to be safe," he said.

"We can't rely on importing and moving crops around the world indefinitely.

"I think we have to be more reliant on locally sourced food."

Until the first road was built in the 1960s, the Kolli Hills were cut off from the outside world.

Farming families had been harvesting millet for centuries, and it was their main source of nutrition.

"This was the only food crop they could depend on," explained Dr S Bala Ravi, a researcher from the Swaminathan Research Foundation.

"There was no communication system; there was no public distribution system, so this was the only dependable crop for them which could be grown in the hills."

However, the construction of the road presented an opportunity for some farmers to switch to more profitable crops.

One such crop is cassava, also known as tapioca.

One farmer explained that until 20 years ago he used to grow millet, but tapioca offered a better return and a better standard of living.

Growing demand

The demand for relatively few crops has left experts worried that traditional knowledge of how to harvest millet will die out; something they have called "cultural erosion".

A project to reintroduce the crop has begun to have some success.

Researchers believe the high nutritional value and its resilience means millet offers a more secure future for farmers, rather than growing cash crops and buying cheap rice to eat.

Thirty-two of the 250 villages in the hills are growing millet again, but Professor Bala Ravi knows more is needed; farmers need to be able to sell it for cash too.

"We want the farmers, instead of selling the raw harvest at a low rate, to enhance its value by various processing methods.

"We are supplying the various machineries and increasing the capacity for processing," he added.

"We have created a market line so that they can bring out their own entrepreneurship and enhance it."

Kolli Hills millet products are now on sale in 34 stores in the region, and sales have increased by 300% over the past year.

Mixing minor crops, such as millet, into the major farming system could be the future for food, locally and globally.

But researchers warn that the success of this type of venture still hangs in the balance.

The Television Trust for the Environment's (TVE) Earth Report - Forgotten Fruit - will be broadcast on BBC World on 15-20 February 2008. Please check schedules for further details


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India state disputes tiger count

BBC News 15 Feb 08;

Authorities in the eastern Indian state of Orissa have rejected the results of a fresh count of the tiger population.

It shows that Orissa has between 37 to 53 of the 1,411 tigers in India. But authorities say a 2005 local census found 192 animals in the state.

The count found a steep fall in India's tiger population from 3,642 animals in a federal census in 2002. Poaching and urbanisation are blamed for the decline in tiger number in the country.

Authorities in Orissa are disputing the results of the new consensus by the National Tiger Conservation Authority.

"We don't agree with the figures. We are proud of our tigers," state chief minister Naveen Patnaik said.

Faulty count?

The census also found that the number of animals in Similipal Tiger Reserve, one of the largest tiger reserves in India, was around 20.

Authorities say a local census in 2005 had found 101 tigers in Similipal alone.

"Tigers are difficult to spot here because of the dense forests. That is why we dispute the figures for Similipal" said Bijay Ketan Patnaik, the state's chief wildlife warden.

Federal authorities have denied the allegation that the census was faulty.

"Our figures for Orissa are robust and based on unexceptionable science and fieldwork in which the state forest authorities were also involved," said Rajesh Gopal of the National Tiger Conservation Authority.

Orissa-based conservationist Biswajit Mohanty said that the state government should punish local officials who had been counting tigers.

"Instead of finding faulty with the figures, the government should take to task officials responsible for misleading people with the number of tigers in the state," he said.

The latest census, released on Tuesday, said that there had been a decline in tiger population all over India.

The only exception was the southern state of Tamil Nadu where the animals' numbers had gone up to 76 from 60 five years ago.

Wildlife experts say urgent efforts should be made to save the animals.

Experts blame the government for failing to crack down on poachers and the illegal trade in tiger skins.

Tigers are poached for their body parts - skins are prized for fashion and tiger bones are used for oriental medicines.

Tiger pelts can fetch up to $12,500 in China.

According to reports, there were 40,000 tigers in India a century ago.

The country is home to 40% of the world's tigers, with 23 tiger reserves in 17 states.


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Canada's oil sands a massive disaster: green group

Reuters 15 Feb 08;

OTTAWA (Reuters) - Canada's massive oil sands are "the most destructive project on earth" and the federal government must intervene to clean up the mess, a leading green group said on Friday.

Environmental Defence said excavation of the oil sands in the western province of Alberta -- home to the richest petroleum deposits outside the Middle East -- is producing vast amounts of greenhouse gases and poisoning local water supplies.

"This is Canada's problem -- our federal elected leaders need to clean it up or shut it down," said Aaron Freeman of Environmental Defence.

The group called on the Conservative government to impose a firm cap on emissions from the oil sands and enforce regulations designed to prevent pollution.

The process to strip the tar-like bitumen out of the sands and turn it into synthetic crude oil is very energy intensive.

Alberta is a Conservative Party stronghold and critics say the government does not want to alienate the powerful energy industry by clamping down. Ottawa denies the charge and says a plan it unveiled last year will cut overall emissions by 20 percent from 2006 levels by 2020.

"All the major polluters, emitters of greenhouse gas emissions, will have to reduce their greenhouse gas emissions, and that includes the oil sands," said Mark Warawa, parliamentary secretary to the environment minister.

The Alberta provincial government says it has issued leases for 4,264 oil sands projects covering 25,065 square miles . New projects costing more than C$100 billion are on the books for the oil sands region and production is expected to triple to 3 million barrels a day by 2015.

($1=$1.01 Canadian)

(Reporting by David Ljunggren; Editing by Peter Galloway)


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U.N. leader Ban presses Bush on climate change

David Alexander, Reuters 15 Feb 08;

WASHINGTON (Reuters) - U.N. Secretary-General Ban Ki-moon on Friday pressed President George W. Bush to take more of a leadership role in negotiations on a new global pact to fight global warming.

The United States, which has been a reluctant partner in climate diplomacy under Bush, abruptly reversed course at climate change talks in Bali, Indonesia, in December and joined 190 nations in agreeing to negotiate a new accord by late 2009.

"It would be ... very much important for the international community to sustain the momentum established in Bali, December last year, in climate change," Ban told Bush after an Oval Office meeting.

He said the United States, with its innovative technologies and financial capabilities, had a critical role to play in advancing the globally accepted framework from the Bali summit.

"I count on your leadership and active participation," Ban told a nodding Bush. "I do appreciate your constructive engagement in this. ... I count on your leadership."

Bush pulled the United States out of the Kyoto climate protocol shortly after he took office, saying it was fundamentally flawed, and has been reluctant to agree to any deal that exempts developing nations from curbs on emissions of greenhouse gases believed to cause global warming.

The Kyoto agreement bound industrial countries to cut emissions of greenhouse gases between 2008 and 2012, but it exempted developing nations.

The negotiations agreed to at Bali seek to bind all countries to emission curbs from 2013. The United States initially opposed the agreement but reversed course at the last minute.

The United States is a leading emitter of greenhouse gases, along with developing nations like China and India.

(Editing by Vicki Allen)


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