American Airlines files for bankruptcy protection; most travellers won't be affected Read it on Global News: Global News | American Airlines files for bankruptcy protection; most travellers won't be affected

DALLAS - The parent company of American Airlines filed for bankruptcy protection Tuesday, seeking relief from crushing debt caused by high fuel prices and expensive labour contracts that its competitors shed years ago.

The company also replaced its CEO, and the incoming leader said American would probably cut its flight schedule "modestly" while it reorganizes. The new CEO, Thomas W. Horton, did not give specifics.

For most travellers, though, flights will operate normally and the airline will honour tickets and take reservations. American said its frequent-flier program would be unaffected.

AMR Corp., which owns American, was one of the last major U.S. airline companies that had avoided bankruptcy. Rivals United and Delta used bankruptcy to shed costly labour contracts, reduce debt, and start making money again. They also grew through mergers.

American — the nation's third-largest airline and proud of an 80-year history that reaches back to the dawn of passenger travel — was stuck with higher costs that meant it lost money when matching competitors' lower fares.

In announcing the bankruptcy filing, AMR said that Gerard Arpey, 53, a veteran of the company for almost three decades and CEO since 2003, had retired and was replaced by Horton, 50, the company president.

Horton said the board of directors unanimously decided on Monday night to file for bankruptcy. In a filing with federal bankruptcy court in New York on Tuesday, AMR said it had $29.6 billion in debt and $24.7 billion in assets.

With reductions to the flight schedule, Horton said there would probably be corresponding job cuts. American has about 78,000 employees and serves 240,000 passengers per day.

AMR's move could also trigger more consolidation in the airline industry. Some analysts believe American is likely to merge with US Airways to move closer to United Continental Holdings Inc. and Delta Air Lines Inc. in size. Such a merger would leave five large U.S. airlines compared with nine in 2008.

US Airways declined to comment.

American will delay the spinoff of its regional airline, American Eagle, which was expected early next year.

AMR, however, wants to push ahead with plans to order 460 new jets from Boeing and Airbus and take delivery of more than 50 others already ordered. New planes would save American money on fuel and maintenance, but the orders will be subject to approval by the bankruptcy court.

Analysts said all airlines will benefit if American reduces flights — especially if the cutbacks are more severe than American's new CEO is letting on. They said the chief winners were likely to be United and Delta, which compete for the same business travellers and have global networks like American's.

The losers will be American Airlines employees and AMR stockholders.

Shareholders almost certainly will be wiped out. The stock had already lost 79 per cent of its value this year on fears of bankruptcy. The stock fell to 26 cents Tuesday, down $1.36 from the day before. In January 2007, after a 4-year rally, the shares peaked at $41.

AMR has lost more than $12 billion since 2001, and analysts expect it will post more losses through 2012. Speculation about an AMR bankruptcy grew in recent weeks as the company was unable to win union approval for contracts that would reduce labour costs. The company said it was spending $600 million more a year than other airlines because of labour-contract rules — $800 million more including pension obligations.

On Tuesday, Horton said no single factor led to the bankruptcy filing. He said the company needed to cut costs because of the weak global economy, a credit downgrade that raised borrowing costs, and high, volatile fuel prices. The price of jet fuel has risen more than 60 per cent in the past five years.

Expectation of a bankruptcy filing increased in November as contract talks with the pilots' union stalled and union leaders rejected a company offer without sending it to members for a vote.

Ray Neidl, an analyst with Maxim Group LLC, an investment banking company, said AMR was wise to file for bankruptcy while it still had about $4 billion in cash. That way, the company will have a cushion to keep operating without worrying immediately about lining up new financing, he said.

Fitch Ratings analyst Bill Warlick said American will focus on shuttering pension plans and getting wage concessions from workers. Both Neidl and Warlick said American might be pushed into a merger with US Airways because size and global networks are more important than ever in the airline business.

Darryl Jenkins, a consultant who has worked for the major airlines, said, "American will still be with us in one form or another 10 years from now." But, he said, its workers will "take a major hit. Their pensions are in danger."

Union leaders expressed unease.

James C. Little, president of the Transport Workers Union, which represents mechanics, baggage handlers and other ground workers at American, was harsh in his assessment of the impact on labour.

"This (bankruptcy) is likely to be a long and ugly process and our union will fight like hell to make sure that front line workers don't pay an unfair price for management's failings," Little said.

AMR, which has headquarters in Fort Worth, Texas, lost $162 million in the third quarter and has lost money in 14 of the past 16 quarters.

The company barely escaped bankruptcy in 2003, when it was still reeling from the drop in air travel caused by a recession and the September 2001 terror attacks. That downturn helped drive United, Delta and US Airways into bankruptcy while American used the threat of a filing to wring wage and benefit concessions from workers.

American was founded in 1930 from the combination of many smaller airlines. Its hubs are in New York, Los Angeles, Dallas-Fort Worth, Chicago and Miami. Major international partners include British Airways and Japan Airlines.

News of the bankruptcy swept through AMR's hometown.

"American Airlines is an institution in Dallas-Fort Worth, and when institutions start to crumble, you look at everything around you," said Elaine Vale, a jewelry store owner who flew back from a Thanksgiving holiday on American. "After American, then who?"

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Airline writers Samantha Bomkamp in New York and Joshua Freed in Minneapolis, and Danny Robbins in Fort Worth contributed to this report.

Justice Kumar to head NRI commission

Chandigarh, November 29

Chief Minister Parkash Singh Badal today approved the constitution of Punjab State Commission for NRIs and appointed Justice Arvind Kumar (retd) as its chairman.

A Punjab Government spokesman said the Chief Minister also approved the appointment of Jagtar Singh of Hoshiarpur as the commission’s member. He said Badal also approved the appointment of Makhan Singh of Ferozepur as a member of the Punjab Subordinate Services Selection Board.

Meanwhile, the Chief Minster also appointed Sampuran Singh and Hardeep Singh, both Fazilka residents, as members of the Board of Directors, Pepsu Roadways Transport Corporation. 

Climate Conference 2011: Canada Says Kyoto Protocol 'Biggest Blunder,' May Withdraw

Global climate talks got an inauspicious start in Durban, South Africa, on Monday with reports that Canada planned to withdraw fully from the Kyoto Protocol, a carbon-limiting multinational treaty first adopted in 1997 and scheduled to expire in 2012.

Canada had already signaled that it would take a hard stance at the Durban talks, where negotiators from around the world are hoping, among other things, to extend the Kyoto agreement with a new phase of emissions reduction commitments. But the suggestion that Canada also planned to abandon its commitments under the original Kyoto protocol, which the nation appears unlikely to meet in any case, was met with deep disappointment by advocates for climate action assembled at the conference.

"Canada has been very clear that it would not be taking on a second commitment period," said Tasneem Essop, the provincial minister of environment, planning and economic development in the South African province of Western Cape and the head of the delegation for the environmental group WWF. "But abandoning the first commitment period would mean that Canada will have absolutely no integrity in the international arena.

"I believe that there will be a backlash against Canada," Essop added in a phone call. "The NGOs are very angry about this news, and Canada will have to do a lot of hard work to regain credibility."

A report on Sunday by the Canadian broadcast network CTV suggested that the Canadian government, under the leadership of conservative Prime Minister Stephen Harper, had planned to make an announcement on the nation's withdrawal from Kyoto "a few days before Christmas." Speaking to reporters on Monday, Canadian representatives neither confirmed nor denied reports of its withdrawal plans, though the nation's environment minister, Peter Kent, asserted in no uncertain terms that "Kyoto is the past."

In a transcript of the press conference provided to The Huffington Post by a spokesman for the environment ministry, Kent also described Canada's participation in the Kyoto agreement as the folly of his government's predecessors. "Our government believes that the previous Liberal government signing on to Kyoto was one of the biggest blunders they made," Kent said, "particularly given they had no intention of fulfilling that commitment."

The Kyoto agreement -- which grew out of the United Nations Framework Convention on Climate Change and was adopted in Kyoto, Japan, 14 years ago -- bound more than three dozen industrialized countries to reduce emissions of certain greenhouse gases by a given percentage, averaging just over 5 percent, over 1990 levels. The protocol was to take effect only after at least 55 countries, representing 55 percent of global CO2 emissions, had ratified the document. Those conditions were fully met in 2004, and the treaty was entered into force in early 2005.

The emissions reductions were to be achieved between 2008 and 2012, the period during which countries would be required to report their progress. Developing nations were not required to make significant reductions, and the United States, accounting for nearly a quarter of global greenhouse gas emissions and by far the largest global per capita emitter, refused to participate.

Europe has made up the bulk of the emissions reductions, and collectively, industrialized countries are on track to achieve the Kyoto goal of reducing their emissions by at least 5.2 percent over 1990 levels. This is true even when including U.S. emissions, which have increased by more than 10 percent over 1990 levels, according to an analysis of global emissions inventories published in September by the Netherlands environmental ministry.

But much of the decrease in emissions is attributed to the collapse of East European and Russian economies in the post-Soviet era, as well as to the current global recession, which has helped to reduce industrial output and overall energy use in many countries. Establishing a second phase for the Kyoto protocol, which officially expires at the end of next year, is a primary goal for negotiators gathered in Durban over the next two weeks -- although significant stumbling blocks make that outcome uncertain.

The United States -- and increasingly, Canada -- are among rich nations that have argued that developing countries like China must formally agree to emissions reductions of their own before a truly global and binding climate treaty can be reached. Short of that, they argue, industrialized economies are unduly hobbled, while powerhouses of the developing world, which are expected to account for an increasing share of global emissions, are able to grow and pollute with abandon.

Developing nations counter that the U.S., Europe and other developed countries became rich through profligate use of inexpensive and CO2-intensive energy sources like oil, coal and natural gas, and that they are to blame for the current build-up of greenhouse gases now warming the planet. They also suggest that it is unfair to ask poor nations to avoid use of inexpensive fossil fuels at precisely the time when they are poised to repeat the economic growth enjoyed by the rich world over the last century.

A $100 billion Green Climate Fund, first posited at the failed climate talks in Copenhagen in 2009, is designed to provide financial assistance to developing nations in their efforts to combat climate change, and establishing an architecture and funding for the trust is among the many goals of the Durban talks. But signs emerged even before negotiations got underway that progress on that front might also prove difficult.

Global greenhouse emissions, meanwhile, continue to rise, and even some participants in the first phase of Kyoto are expected to fall short of their goals under the agreement. This includes Canada, which had pledged to reduce greenhouse gas emissions by 6 percent compared to 1990 levels. Canada's most recent inventory of greenhouse gas emissions, submitted to the United Nations earlier this year, showed that while the country had been making year-over-year reductions since 2008, its emissions are still nearly 20 percent higher than they were in 1990.

Critics in large part blame increased development of the tar sands, a vast and contentious deposit of sand, clay and oil in northern Alberta. The Canadian government has expressed strong support for stepped-up exploitation of the tar sands, which they view as an economic boon. But opponents have argued that the carbon footprint associated with such an expansion would permanently cripple global efforts to get global warming under control.

"What's astonishing is watching Canada emerge as a rogue among developed countries," said Bill McKibben, the author and activist who has spearheaded a grassroots movement aimed at combatting a pipeline proposal designed to deliver some 700,000 barrels of oil each day from the tar sands to refineries and ports on the Texas Gulf Coast. "Of course, they have no choice but to ditch serious climate policy if they want to develop the tar sands in a big way -- and that pool of gunky oil is clearly the tail wagging the dog up there."

Kanimozhi gets bail from HC after six-month stay in Tihar jail

After six months in Tihar jail and five attempts, DMK patriarch M Karunanidhi's daughter Kanimozhi and four others got bail in the 2G case from the Delhi High Court on Monday.
Justice VK Shali of the high court said in his 39-page order that Kanimozhi and the four were on a "better footing" and deserved the benefit on the ground of "parity" with the five telecom executives released last week by the Supreme Court.
The court also considered the fact that she was a woman — an argument ignored so far right from the trial court to the apex court. But 43-year-old Kanimozhi, who was arrested on May 20, will have to spend one more night at Tihar, as the release formalities could not be completed on Monday.
Earlier, during the investigation into the 2G scam case, the CBI alleged that Kanimozhi was the brain behind DMK-owned Kalaignar TV's move to take a R200-crore bribe from Shahid Balwa's DB Realty companies in exchange for allocation of licence to Balwa-owned Swan Telecom.

The main 2G scam accused and former telecom minister A Raja, however, is still in Tihar, as he has not applied for bail. He was arrested on February 2, 2011.
The four others who have got bail on Monday are Kalaignar TV managing director Sharad Kumar, filmmaker Karim Morani and Kusegaon Fruits and vegetables Pvt Ltd directors Rajiv Aggarwal and Asif Balwa.
The court, however, reserved its order on telecom secretary Siddhartha Behura's bail plea, as the CBI opposed the move. Bail pleas of public servants required stricter scrutiny, the agency said.
As the news of Kanimozhi being granted bail broke, Karunanidhi announced a big welcome-home party for her in Chennai. "She spoke to me soon after the court gave her bail and both of us shared the happiness," he told reporters in Chennai.
The court has asked those granted bail to surrender their passports, furnish a bond of Rs 5 lakh each with two sureties of as much amount and remain present during the trial on a daily basis.
Justice Shali gave the CBI the liberty to approach the court in case any of the accused violated bail conditions. Justice Shali took the cue from the November 23 Supreme Court order granting bail to five telecom executives, saying, "Bail is rule and jail is an exception."

HC suspends Sukh Ram's sentence, grants him bail

NEW DELHI: In a relief for former Telecom Minister Sukh Ram, the Delhi High Court today suspended the five-year sentence awarded to him in a graft case and granted him bail.

A bench of justice Suresh Kait suspended the sentence keeping in view his old age and various ailments.

"I suspend the sentence till disposal of case," the court said.

The court released him on bail considering that he is an 86-year-old heart patient and keeping in view the medical report submitted by the Tihar Jail authorities, which said he suffered from heart diseases and cervical spondylitis.

It directed Sukh Ram to furnish two sureties of Rs 10 lakh and asked him not to leave the country without the prior permission of the court.

The CBI had opposed his bail, saying he had been convicted twice earlier and was a habitual offender.

Sukh Ram, who had held the Telecom portfolio in P.V. Narasimha Rao's Cabinet, was convicted on November 17 in a cable contract case. He was handed out a five-year jail term by Special CBI judge R. P. Pandey on November 19 and was sent to jail.

He was convicted for misusing his official position during his tenure as Telecom Minister in award of a contract worth Rs 30 crore to Haryana Telecom Limited (HTL), a private firm, to supply 3.5 lakh conductor km of PIJF cables to the telecom department after taking Rs 3 lakh as bribe.

Sukh Ram had earlier been convicted in two separate corruption cases in 2002 and 2009 but remained out of jail after suspension of his sentence. 

Visa fraud: 6 persons arrested

Chandigarh, November 26

The Chandigarh Police today arrested six persons for submitting fake documents with the visa office while applying for tourist visa to the UK.

A special investigation team set up on immigration, student and tourist visa fraud, headed by DSP Anil Joshi, arrested Vikram Sharma, alias Vicky, and Viney Chadha, operators of the Atlantic Overseas Consultancy at Sector 32 here, on November 18.

The police today arrested Amandeep Singh of Yamunanagar, Sukhdev Singh of Karnal, Manjit Singh of Khalsa Basna village in Kurukshetra district, Kashmir Singh of Paherkalan village in Patiala district, Amrik Singh of Patiala and Kulwinder Singh of Jalandhar.

The police said these six applicants had gone to the visa office of the UK in Chandigarh and submitted documents with addresses, bank statements, income tax returns and mobile numbers, which were fake, intentionally in connivance with the main accused for getting tourist visa to the UK illegally.

Joshi said the Chandigarh Police was taking action not only against immigration companies, but also against applicants who were intentionally instigating these companies to prepare fake documents.

Mixed response to HC stay order

Conversion of council into a corporation

Mohali, November 26
There is a mixed response from former municipal councillors to the stay orders of the Punjab and Haryana High Court issued in connection with the government notifications converting the Mohali municipal council into a corporation.
While some of the former councillors have welcomed the orders
saying that the upgraded body had not played any major role in the development of the town, others said they were neither happy nor sad regarding the orders as these were only a part of the legal process and the final verdict was still awaited.
The Punjab and Haryana High Court yesterday stayed the notifications through which the local civic body was upgraded to the level of a corporation. The court had also issued a notice of motion to the department of local government, Mohali Deputy Commissioner and municipal corporation for January 9.
Rajinder Sharma, who owes allegiance to SAD, said he was happy with the orders of the court as the upgraded civic body had done nothing for the development of Mohali. He said NK Sharma, chairman of the district planning committee, had got several development works initiated in the town at his own level, but officials of the corporation had failed to show any results.
Parkash Wati said she was happy to learn about the orders of the court.
She said elected representatives had sacrificed eight months of their term hoping that Mohali would witness major development activities, but only faced disappointment. Moreover, former councillors were promised that they would be nominated to the upgraded civic body, but nothing happened, she added.
Another former municipal councillor Amteshwar Kaur said orders of the high court made no difference to her as she was only interested in the development and was not bothered whether this was carried out by the corporation or the council.

Sukhminder Singh Barnala, however, claimed that the corporation had carried out development works in the town and the government had spent a lot of money in this regard. Had the Congress-headed civic body not been dissolved, the government would have not spent so much here.

‘Strengthen consumer Act’

Activists favour timely grievance redress, lower fee, decentralised fora

Chandigarh, November 26
The Centre should initiate steps to strengthen the Consumer Protection Act, 1986, to ensure timely redress of consumer grievances and the fee for filing a case should be reduced to Rs 10, on pattern of the RTI Act.

These were the views of consumer activists on the concluding day of the two-day convention. They also demanded the decentralisation of consumer fora to reach the grassroots by establishing headquarters at the subdivisional level.

Welcoming the government’s move to enact the Bill to regulate the real estate sector, which they termed as the need of the hour, the delegates called upon the Centre to withdraw the notification to allow non-standard packages, which caused unfair trade practices.

The convention also focused on consumer empowerment in relation to energy and fuel efficiency, an alternative complaint dispute redress system, public service quality and a citizens’ charter.

The convention resolved to support a strong Lokpal to curb corruption. Another resolution was passed, in which the government was called upon to create an administrative and legal mechanism to ensure the quality of public service.

The convention also resolved that the draft Citizens’ Right to Grievance Redressal Bill, 2011, which is in circulation for discussion, was grossly inadequate.

The convention noted the attempts by the governments of Punjab and Delhi to pass legislations on this subject without adequate consultation with user groups.

A consumer charter of demands for the telecom sector was also passed, in which consumers, both individually and collectively, called upon the government and the Telecom Regulatory Authority of India to take immediate and concrete steps to remove consumer detriment before the next International Consumer Rights Day, which was March 15 next.

It was resolved that the Consumer Coordination Council undertake projects on good governance and a citizens’ charter in coordination with member organisations, civil society groups and the government.

On alternative dispute redress, it was resolved that the core-centre and toll-free projects of the council be continued and ongoing projects and awareness programmes be organised at the block level and rural areas in the country.

Why organised retail benefits farmers in Punjab & Himachal

Chandigarh, November 26
With Foreign Direct Investment (FDI) in retail opened up in 53 cities in the country ( which have a population of above 10 lakhs), Himachal Pradesh is unlikely to be affected directly, although vegetable and fruit growers in HP will possibly be able to bargain better with big retail chains. But with the BJP opposing FDI in retail nationally, the Himachal unit of the BJP too has succumbed to the political compulsion of opposing it.

In any case, since the retailers will have to register and obtain licenses, the state governments will be responsible for granting or rejecting the applications.

But to its enormous embarrassment, staunch ally Shiromani Akali Dal has been effusive in welcoming the move. Punjab deputy chief minister, Sukhbir Singh Badal, was quick to write a letter to Commerce Minister, Anand Sharma, endorsing the decision. Entry of foreign players, he said yesterday at Anandpur Sahib, would create a more competitive market for agriculture produce.

His optimism is based on Punjab’s successful experience with agri corporates. The entry of agri corporates like Bharti Wal-mart, Pepsi Co, Tata Khet Se and Metro Cash and Carry, has actually helped in strengthening the retail supply chain. Farmers in Haider Nagar locality of Malerkotla, who supply vegetables to Bharti Wal-Mart, have not just been able to improve the quality of the vegetables they produce, but they are also getting better prices. Potato growers in the Doaba region have also benefitted by selling their produce to Pepsi Co.

“Most of the agri businesses are sourcing 30- 40 per cent of their requirement from farmers within the state. As a result, farmers are assured of a buy back arrangement with these corporates and of higher returns.

“These farmers also learn better agricultural practices from the experts appointed by these companies, thus leading to a better quality of produce,” said a senior official in the state Agriculture department.

The entry of corpoartes in the poultry sector in Punjab, too, has made the small poultry farmer in the state viable. Big poultry corporates like Suguna and Venkateshwara Hatcheries have “integrated” with many small poultry farmers in Gurdaspur, Pathankot and Rajpura. These corporates supply their own seed, feed for birds and medicines, while the farmers nurse and attend to the birds before selling them to the firms.

Ironically, even in Himachal Pradesh, the entry of agri corporates like Adani Agrilogistics, Dev Bhoomi, Reliance Retail and Mother Dairy procuring apples, other fruits and exotic vegetables, has helped raise the economic condition of growers.

But talking to The Tribune, the chief minister Prem Kumar Dhumal said, “ The small shopkeepers will lose their business and it wll add to unemployment. With the withdrawal of the industrial package, our state is already facing a lot of unemployment. Agreed that some agri corporates have been buying select fruits and vegetables from Himachal, but the majority purchase is still being done by the state government,” he said.

Several farmers’ organisations, too, are sceptical about the move. Balbir Singh Rajewal, President of Bharatiya Kisan Union, said the move would benefit just those farmers who have large land holdings. Almost 70 per cent of the farmers in Punjab have less than five acres of land holding and will not be able to make enough investments in improving their farming operations, as desired by foreign agri corporates, he said.

Alberta cracks down on drivers who drink

What is it?

Traffic Safety Amendment Act

Why are they doing it?

The law will dramatically increase sanctions for Albertans who drive after drinking.

Those caught drinking and driving can already be charged under the Criminal Code of Canada if they have a blood-alcohol content over 0.08. Under the proposed new provincial law, people criminally charged with drunk driving will immediately lose their licences until the charges are resolved.

Albertans caught driving with a blood-alcohol content between .05 and .08 – below the criminal limit – will be subject to a three-day license suspension and a three-day vehicle seizure for a first offence. A second offence will bring a 15-day suspension and a seven-day seizure. A third offence will bring a 30-day suspension and a seven-day seizure. Drivers will pay impound costs.

Finally, under the proposed law, young drivers in Alberta will face stricter rules. The zero-tolerance for alcohol will continue, but those caught drinking and driving will face an immediate 30-day suspension. Also, for the first six months that new drivers are allowed to drive alone, the new driver cannot have more than one teen passenger in the vehicle. They are also restricted from driving between midnight and 5 a.m.

What are critics saying?

The Canadian Federation of Independent Business says the law will do little to prevent or punish drunk driving, but will have a severe impact on small business. The group says similar laws in B.C. created public confusion about whether it is permissible to even have a glass of wine before driving, leading to losses of between 10 and 50 per cent at some establishments.

Alberta Justice minister wants Ottawa to lower drunk-driving threshold

EDMONTON - As the province pushes ahead with legislation to increase sanctions on suspected drunk drivers, Alberta’s justice minister says he wants to talk to Ottawa about potentially toughening federal laws.

Specifically, Verlyn Olson said he is interested in the possibility of lowering the current .08 blood-alcohol threshold for laying a criminal charge on a driver.

Olson said he needs to do more research on the issue, but suggested .05 might be a more appropriate standard.

“Right now, .08 is the criminal standard and that’s something I’d be interested in talking to the feds about,” he said. “There is discussion that goes on about what is the right number, but I think it’s accepted that .05 is the beginning of impairment. It’s not there as an arbitrary number.”

Olson noted that most western European countries and Australian provinces use a .05 limit, Japan has a standard of .03, Sweden is .02. Hungary and the Czech Republic have a zero-alcohol policy.

Leila Moulder, president of the Edmonton chapter of Mothers Against Drunk Driving, said she would support reviewing the .08 standard in Canada.

“I don’t see why that would be a bad thing,” she said. “At the .05 level, people are impaired. There is reaction time impairment, you are slower, you aren’t quite as co-ordinated, your fine motor skills aren’t working at a top-notch level.”

Moulder’s organization is also supporting the province’s proposed legislation, Bill 26, which would impose some of the strictest administrative penalties in the country.

For drivers who record a blood-alcohol level between .05 and .08, which is not a Criminal Code violation, the province currently allows police to impose a 24-hour licence suspension. The new legislation would increase that to an automatic three-day suspension and a three-day vehicle seizure for a first offence. A seven-day vehicle seizure along with a 15-day suspension or 30-day suspension would be triggered for a second and third offence, respectively.

For drivers who blow over .08, they will get a criminal charge, and lose their licence until the charge is resolved by the courts. Those convicted will be required to equip their car with an interlock device, which measures a person’s breath before starting the ignition.

The bill also targets new drivers, imposing a seven-day seizure and 30-day suspension if they are found with any alcohol in their system.

“It’s a definite step forward,” Moulder said. “We think this will serve as a better deterrent because from what we had seen, the 24-hour suspension wasn’t enough.”

However, some civil liberties advocates suggest the legislation may create more problems than it solves, since the current bill sidesteps due process and will wind up punishing innocent people.

“This is a very significant inroad into the panoply of rights we have in the criminal justice system and under the charter,” said D’Arcy Depoe of the Criminal Trial Lawyers Association. “No one has sympathy for the 90 per cent who are probably factually guilty, but what about the rest?”

Depoe said the proposed lengthy suspensions and seizures essentially allow police to impose punishment on people before any charge is laid or a case is heard in court. That will wind up hurting people who need their cars for work, or must transport their children to school or daycare.

“The presumption of innocence is gone and your ability to defend yourself is gone,” he said.

“When you have police making the decision at roadside, all the issues that would ordinarily arise at a criminal trial are effectively pre-determined. Was the person actually driving? Was the (breathalyzer) machine operating properly? Did the person have a reasonable excuse? Some people can’t blow because of medical issues or an injury.

“And you are not entitled to disclosure of Crown’s case, and not entitled to cross-examine the police officer.”

Depoe also took issue with the idea that people who blow over .08 should lose their licence until the criminal charge is resolved by the courts. He said it can currently take between six months to a year to receive a trial date in provincial court, and then there is the danger of further adjournments if the lawyers, the accused or judge is sick.

The province estimates impaired driving charges take up 40-per-cent of all trial time among its Crown prosecutors. Depoe said he believes the legislation is designed as a way to reduce that figure, by trying to force people to plead guilty so they can get their licence back sooner.

Hal Joffe of the Rocky Mountain Civil Liberties Association said the legislation also has a jurisdictional issue, since drunk driving legislation typically comes under the purview of the federal government, which has set the standard at .08.

“The province is essentially saying there is a lesser impairment at .05, that we’re going to have a different standard. They are trying to get around the jurisdictional issue by saying there are imposing only administrative penalties.”

Joffe said this issue may explain why Olson is interested in talking to Ottawa about lowering the Criminal Code threshold.

“That, in my mind, would be a more proper way to go.”

This is the second time in recent years the Alberta government and Premier Alison Redford have been accused of pushing legislation that attempts to get around due process. In 2009, then-justice minister Redford pressed into service “civil forfeiture” legislation that permits authorities to seize and sell property suspected of being used in the commission of a crime. Such seizures can occur without a criminal charge, let alone a conviction.

“The premier is a lawyer and the attorney general is lawyer, and this legislation has been devised by senior people in the justice department who are lawyers,” Depoe said. “I don’t know what they are thinking.

“In my mind, it is pandering to loud interest groups like MADD and relying on the great mass of the population not really looking at this in any detail.”

Olson said the province is prepared for any legal challenges.

Redford has said she would like to see the drunk driving penalties in place by Christmas, though Transportation Minister Ray Danyluk has suggested next summer might be more likely.

The pros and cons of FDI in retailing

The Cabinet has approved 51 per cent FDI in multi-brand retail, a decision that will allow global mega chains like Wal-Mart, Tesco and Carrefour to open outlets in India.

The Cabinet also increased the foreign investment (FDI) ceiling to 100 per cent from the present 51 per cent in single-brand retail.

The following are the main issues raised by those in favour of foreign equity in multi-brand retailingand those opposed to it:

Those against:
- It will lead to closure of tens of thousands of mom-and-pop shops across the country and endanger livelihood of 40 million people
- It may bring down prices initially, but fuel inflation once multinational companies get a stronghold in the retail market
- Farmers may be given remunerative prices initially, but eventually they will be at the mercy of big retailers
- Small and medium enterprises will become victims of predatory pricing policies of multinational retailers
- It will disintegrate established supply chains by encouraging monopolies of global retailers

Those in favour:
- It will cut intermediaries between farmers and the retailers, thereby helping them get more money for their produce
- It will help in bringing down prices at retail level and calm inflation
- Big retail chains will invest in supply chains which will reduce wastage, estimated at 40 percent in the case of fruits and vegetables
- Small and medium enterprises will have a bigger market, along with better technology and branding
- It will bring much-needed foreign investment into the country, along with technology and global best-practices
- It will actually create employment than displace people engaged in small stores
- It will induce better competition in the market, thus benefiting both producers and consumers

Cabinet clears 51% FDI in multi-brand and 100% in single-brand retail

Paves way for global chains to open mega stores in 53 major cities

New Delhi, November 24
The Union Cabinet today cleared 51% foreign investment in multi-brand retail and 100% in single-brand retail, throwing open the country’s estimated $590 billion (Rs 29.5 lakh crore) retail market to global supermarket giants, despite differences between the UPA allies on the issue.
It also approved the Companies Bill, 2011 that seeks to tighten norms on insider trading, prevent corporate frauds and introduce new concepts like class action suits. Once approved by Parliament, it would replace a 55-year-old old legislation.
The decision on FDI, taken at a meeting of the Cabinet presided over by Prime Minister Manmohan Singh, will pave the way for global chains like WalMart, Carrefour and Tesco to open mega stores in 53 major cities. Currently, India allows 51% FDI in single-brand retail and 100% FDI in the cash-and-carry format of the business.
Besides the main Opposition BJP, the Left and UPA partner Trinamool Congress along with Congress ministers Veerappa Moily and Mukul Wasnik had opposed the FDI proposal saying it could create major problems for the country.
"We will make a statement in Parliament," is all Commerce Minister Anand Sharma said after the meeting, given the sensitivities involved. But some ministers and officials confirmed the clearance to FDI.
While the BJP feels that the FDI in retail would lead to unemployment, the Left parties feel it would lead to further inflation and price rise. However, the government is of the view that this biggest reform in years could boost sorely-needed investment in Asia's third-largest economy.
Sources said there are also some caveats proposed in the policy, notably to protect the interests of mom-and-pop shops, farmers and small and medium enterprises. There are some 40 million people involved directly in running these neighbourhood kirana stores.
Earlier, a panel headed by Cabinet Secretary Ajit Kumar Seth had recommended 51% FDI in multi-brand retail but with certain riders.

The panel had suggested that at least 50% of the investment and jobs should go torural areas. Besides, entities with FDI should source at least 30% of their requirements from the micro, small and medium enterprises sector. A foreign player would also have to commit an investment of at least $100 million.

Other recommendations included allowing such mega stores to sell non-branded items. Such entities would be allowed only in towns with a population of over 10 lakh.

In another decision, the Union Cabinet also cleared the Companies Bill, 2011 which, once approved by Parliament, will replace a half-a-century-old Act. The Bill, which has already been vetted by the Parliamentary Standing Committee of Finance and also by different ministries, seeks to update company law in line with the best global practices.

The Bill has introduced ideas like corporate social responsibility (CSR), class action suits and a fixed term for independent directors.

Among other things, it also proposes to tighten laws for raising money from the public. The Bill also seeks to prohibit any insider trading by company directors or key managerial personnel by treating such activities as a criminal offence.

Follow procedure while acquiring individuals’ properties, SC to states

New Delhi, November 24
Slapping a cost of Rs 2.5 lakh on Haryana for illegally acquiring a farmer’s land in Sonepat, and quashing the acquisition as null and void, the Supreme Court has issued a fiat to all the states to desist from taking over the properties of individuals, particularly farmers, except in cases where it is “absolutely necessary.”
The SC pointed out that in the recent past various state governments had resorted to “massive acquisition of land and that too without complying” with the mandatory legal procedures in the name of public purpose only to “confer benefit upon private parties.”
Such reckless acquisitions depriving ordinary people of their agriculture land, houses built with life-time savings or small industrial units set up with great difficulty were “wholly unjust, arbitrary and unreasonable,” a Bench comprising Justices GS Singhvi and SJ Mukhopadhaya ruled.

In the present case, the Bench noted that the affected farmer, Raghbir Singh Sehrawat, was shown as dead on the relevant documents, while his wife’s signature had been forged and she was described as a widow. Further, it was wrongly contended that the state had taken physical possession of the land and handed it over to the Haryana State Industrial Infrastructure Development Corporation(HSIIDC) on November 28, 2008, while village records showed that Sehrawat was still cultivating the land and there was a standing crop at the relevant time.

“Before acquiring private land, the state and/or its agencies/instrumentalities should, as far as possible, use land belonging to the state for the specified public purpose. If the acquisition of private land becomes absolutely necessary, then too, the concerned authorities must strictly comply with the relevant statutory provisions and the rules of natural justice,” the Bench noted in the 25-page verdict, written by Justice Singhvi.

The Bench noted that several state governments and their functionaries were adopting a “very casual approach” in dealing with matters relating to the acquisition of land in general and “the rural areas in particular and in a large number of cases” the acquisitions had been quashed by the judiciary for not following the mandatory procedure.

“It is difficult, if not impossible, to appreciate as to why the state and its instrumentalities resort to massive acquisition of land and that too without complying with the mandate of the statute,” the SC said.

While diversion of farm land in the name of planned development or industrial growth would seriously affect the availability of food in future, depriving people of their only assets like a small house or a small industrial unit would amount to denying them of a “semblance of dignity” they have been struggling for, the apex court observed.

The owners, whose land was being acquired, should be given a chance to raise all sorts of objections, either by pointing out that the land was not suitable for the proposed purpose or by suggesting that an alternative piece of land was available or through other means.

“In other words, the recommendations made by the Collector must reflect objective application of mind to the objections filed by the landowners and other interested persons,” the Bench clarified.

The apex court also noted that since independence, the administrative apparatus of the State had neither invested enough in the rural areas nor educated and empowered the farmers to adopt alternative sources of livelihood.

“It also appears that the concerned authorities are totally unmindful of the plight of those sections of the society, who are deprived of their only asset like small house, small industrial unit etc. They do not realise that having one’s own house is lifetime dream of majority of population of this country,” they observed.

UK Cabinet nod to madarsa board

OTHER DECISIONS              n Separate directorate for minority affairs to be formedn Area of spending under the MLALAD fund increasedn The Uttarakhand Urban Street Vending and Business on Pavement (Regulation and Management) Rules, 2011, approvedn Nagar panchayat status to Purola and Gairsainn Free bus travel for girls in government busesn Award of Rs 50,000 for students getting admission to prestigious medical, management and engineering institutions

Dehradun, November 22

At the third Cabinet meeting held in November, the Uttarakhand Government gave its approval to the creation of a madrasa board, a separate directorate for minority affairs, an increase in the area of spending under the MLA local area development (MLALAD) fund along with the Uttarakhand Urban Street Vending and Business on Pavements (Regulation and Management) Rules, 2011.

At a press briefing held last night, Chief Secretary Subash Kumar said the Muslim Education Mission would be merged with the new board. This would sort out the problem of 500 madarsas and their issue of affiliation. The board would comprise a total of 13 officials, including the director, chief registrar and the accountant.

The government also gave its approval to the creation of a separate minority affairs directorate that would play a role in the implementation of the minority welfare schemes. The main office of the directorate, which is to be located in Dehradun, would have the services of 11 officers, including the director.

The Uttarakhand Urban Street Vending and Business on Pavement (Regulation and Management) Rules, 2011, approved by the Cabinet call for demarcating separate space for vendors and also allowing them to do business legally. It will be implemented in three Municipal Corporations of the state.

Now, under the MLA LAD fund, the MLAs would be able to allocate Rs 10 lakh towards equipping yoga centres and fitness centres by the Yuva Mandal Dals as also towards providing office furniture for the Mahila Mangal Dals.

In another important decision, the Cabinet also gave its nod to according the nagar panchayat status to Purola and Gairsain and also gave approval for making “nazul” land free hold on the basis of the rates that prevailed in 2000.

The Cabinet approved the populist announcements made by Chief Minister BC Khanduri in early November, including free bus travel for girls in government buses, award of Rs 50,000 for those students getting admission to the prestigious medical, management and engineering institutions.

To further improve the government’s image and usher in transparency, the Cabinet also gave approval to signing an agreement between the government and the parties undertaking supplies and other works to ensure no bribes are taken.

3-day police remand for visa fraudsters

Chandigarh, November 22

The two immigration fraud accused were produced in a local court today and sent to three-day police remand. The accused, Vikram Sharma of Chandigarh and Vinay Chadha of Zirakpur, were arrested on November 18.

They used to assist their clients, especially those whose visa applications had been rejected earlier, by locating local residents with similar names and then applying for visa by using their names and addresses.

These facts came to light following the arrest of the duo, who used to operate in the name of the Sector-32 Atlantic Overseas Consultancy and charge between Rs 6 lakh and Rs 8 lakh each per tourist visa.