Football: Giggs signs new one-year deal at Man Utd - club






LONDON: Ryan Giggs, who is set to make his 1,000th appearance in senior football this weekend, has signed a new one-year contract at Manchester United, the club announced on Friday.

The English Premier League leaders said the deal keeps the 39-year-old Wales winger at Old Trafford until June 2014 and sees him complete a 23rd season as a first-team player.

Coach Alex Ferguson told manutd.com: "What can I say about Ryan that hasn't already been said? He is a marvellous player and an exceptional human being. Ryan is an example to us all, the way in which he has, and continues to, look after himself.

"He has fantastic energy for the game and it is wonderful to see. Ryan seems to reach a new milestone every week and to think that he now has 23 unbroken years of league goals behind him is truly amazing in the modern-day game.

"His form this year shows his ability and his enjoyment of the game are as strong as ever and I am absolutely delighted that he has signed a new contract."

Giggs signed professional forms with United in 1990 and made his debut on March 2, 1991.

He has made 931 appearances for the club -- a Manchester United record -- and scored 168 goals.

He has been capped 64 times for Wales and played four times for the British Olympic men's football team at last year's London Games.

During his impressive storied career, he has won 12 Premier League titles, four FA Cups, three League Cups, two Champions Leagues, one Super Cup, an Intercontinental Cup and a FIFA Club World Cup.

Giggs said he was "delighted" to have signed a new contract and despite his advancing years said he was "feeling good, enjoying my football more than ever and, most importantly, I feel I am making a contribution to the team".

He added: "This is an exciting team to be part of, with great team spirit, and we are again pushing for trophies as we head towards the business end of the season."

-AFP/sb



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Sushilkumar Shinde identifies Bhandara rape victims, names expunged

NEW DELHI: The names of the three minor girls who were raped and murdered in Maharashtra's Bhandara district had to be expunged on Friday after home minister Sushilkumar Shinde identified them in the Rajya Sabha, attracting the ire of the opposition BJP.

Shinde read out a statement on the gruesome incident in Maharashtra where three minor sisters were kidnapped, raped and murdered last month. Their bodies were taken out from a well.

Shinde named all the rape victims, which according to the law is prohibited.

The matter was raised by leader of opposition in the Rajya Sabha Arun Jaitley, who said he shouldn't have named Bhandara rape victims.

"As per the Criminal Law Ordinance 2013, the identity of rape victims is never to be revealed. However, the home minister in paragraph two has given names of all the three victims," the Bharatiya Janata Party leader said.

"The whole house is discussing the issue. Home minister should consider this fact and withdraw the statement and have it corrected and place it again at 2pm," he said.

Deputy chairman PJ Kurien ordered that the names be expunged.

"It is a very important matter and it (names) should be treated as expunged and media should also not use the names in any reports else action will be taken," said Kurien.

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WHO: Slight cancer risk after Japan nuke accident


LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.


In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.


"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."


The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.


On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.


In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.


Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.


In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.


The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.


Wakeford said the increase may be so small it will probably not be observable.


For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."


David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.


Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.


Some experts said it was surprising that any increase in cancer was even predicted.


"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.


WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.


Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.


"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.


Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.


"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.


In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."


Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.


Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.


Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.


"I'm enraged," he said.


___


Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.


__


Online:


WHO report: http://bit.ly/YDCXcb


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Sequestration: Surrender is in the Air












The budget ax is about to fall, and there's little lawmakers in Washington are doing to stop it.


Despite a parade of dire warnings from the White House, an $85 billion package of deep automatic spending cuts appears poised to take effect at the stroke of midnight on Friday.


The cuts – known in Washington-speak as the sequester – will hit every federal budget, from defense to education, and even the president's own staff.


On Capitol Hill, Senate Democrats and Republicans each staged votes Thursday aimed at substituting the indiscriminate across-the-board cuts with more sensible ones. Democrats also called for including new tax revenue in the mix. Both measures failed.


Lleaders on both sides publicly conceded that the effort was largely for show, with little chance the opposing chamber would embrace the other's plan. They will discuss their differences with President Obama at the White House on Friday.


"It isn't a plan at all, it's a gimmick," Senate Minority Leader Mitch McConnell, R-Ky., said today of the Democrats' legislation.


"Republicans call the plan flexibility" in how the cuts are made, said Senate Majority Leader Harry Reid. "Let's call it what it is. It is a punt."


The budget crisis is the product of a longstanding failure of Congress and the White House to compromise on plans for deficit reduction. The sequester itself, enacted in late 2011, was intended to be so unpalatable as to help force a deal.








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Republicans and Democrats, however, remain gridlocked over the issue of taxes.


Obama has mandated that any steps to offset the automatic cuts must include new tax revenue through the elimination of loopholes and deductions. House Speaker John Boehner and the GOP insist the approach should be spending cuts-only, modifying the package to make it more reasonable.


"Do we want to close loopholes? We sure do. But if we are going to do tax reform, it should focus on creating jobs, not funding more government," House Speaker John Boehner said, explaining his opposition to Obama's plan.


Boehner, McConnell, Reid and House Minority Leader Nancy Pelosi will huddle with Obama at the White House on Friday for the first face-to-face meeting of the group this year.


"There are no preconditions to a meeting like this," White House spokesman Jay Carney said today. "The immediate purpose of the meeting is to discuss the imminent sequester deadline and to avert it."


Even if the leaders reach a deal, there's almost no chance a compromise could be enacted before the deadline. Lawmakers are expected to recess later today for a long weekend in their districts.


What will be the short-term impact of the automatic cuts?


Officials say it will be a gradual, "rolling impact" with limited visible impact across the country in the first few weeks that the cuts are allowed to stand.


Over the long term, however, the Congressional Budget Office and independent economic analysts have warned sequester could lead to economic contraction and possibly a recession.


"This is going to be a big hit on the economy," Obama said Wednesday night.


"It means that you have fewer customers with money in their pockets ready to buy your goods and services. It means that the global economy will be weaker," he said. "And the worst part of it is, it's entirely unnecessary."


Both sides say that if the cuts take effect, the next best chance for a resolution could come next month when the parties need to enact a new federal budget. Government funding runs out on March 27, raising the specter of a federal shutdown if they still can't reach a deal.


"As we anticipate an across-the-board budget cuts across our land, we still expect to see your goodness prevail, O God, " Senate Chaplain Barry Black prayed on the Senate floor this morning, "and save us from ourselves."



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Low-key departure as pope steps down and hides away


VATICAN CITY (Reuters) - Pope Benedict slips quietly from the world stage on Thursday after a private last goodbye to his cardinals and a short flight to a country palace to enter the final phase of his life "hidden from the world".


In keeping with his shy and modest ways, there will be no public ceremony to mark the first papal resignation in six centuries and no solemn declaration ending his nearly eight-year reign at the head of the world's largest church.


His last public appearance will be a short greeting to residents and well-wishers at Castel Gandolfo, the papal summer residence south of Rome, in the late afternoon after his 15-minute helicopter hop from the Vatican.


When the resignation becomes official at 8 p.m. Rome time (02.00 p.m. EST), Benedict will be relaxing inside the 17th century palace. Swiss Guards on duty at the main gate to indicate the pope's presence within will simply quit their posts and return to Rome to await their next pontiff.


Avoiding any special ceremony, Benedict used his weekly general audience on Wednesday to bid an emotional farewell to more than 150,000 people who packed St Peter's Square to cheer for him and wave signs of support.


With a slight smile, his often stern-looking face seemed content and relaxed as he acknowledged the loud applause from the crowd.


"Thank you, I am very moved," he said in Italian. His unusually personal remarks included an admission that "there were moments ... when the seas were rough and the wind blew against us and it seemed that the Lord was sleeping".


CARDINALS PREPARE THE FUTURE


Once the chair of St Peter is vacant, cardinals who have assembled from around the world for Benedict's farewell will begin planning the closed-door conclave that will elect his successor.


One of the first questions facing these "princes of the Church" is when the 115 cardinal electors should enter the Sistine Chapel for the voting. They will hold a first meeting on Friday but a decision may not come until next week.


The Vatican seems to be aiming for an election by mid-March so the new pope can be installed in office before Palm Sunday on March 24 and lead the Holy Week services that culminate in Easter on the following Sunday.


In the meantime, the cardinals will hold daily consultations at the Vatican at which they discuss issues facing the Church, get to know each other better and size up potential candidates for the 2,000-year-old post of pope.


There are no official candidates, no open campaigning and no clear front runner for the job. Cardinals tipped as favorites by Vatican watchers include Brazil's Odilo Scherer, Canadian Marc Ouellet, Ghanaian Peter Turkson, Italy's Angelo Scola and Timothy Dolan of the United States.


BENEDICT'S PLANS


Benedict, a bookish man who did not seek the papacy and did not enjoy the global glare it brought, proved to be an energetic teacher of Catholic doctrine but a poor manager of the Curia, the Vatican bureaucracy that became mired in scandal during his reign.


He leaves his successor a top secret report on rivalries and scandals within the Curia, prompted by leaks of internal files last year that documented the problems hidden behind the Vatican's thick walls and the Church's traditional secrecy.


After about two months at Castel Gandolfo, Benedict plans to move into a refurbished convent in the Vatican Gardens, where he will live out his life in prayer and study, "hidden to the world", as he put it.


Having both a retired and a serving pope at the same time proved such a novelty that the Vatican took nearly two weeks to decide his title and form of clerical dress.


He will be known as the "pope emeritus," wear a simple white cassock rather than his white papal clothes and retire his famous red "shoes of the fisherman," a symbol of the blood of the early Christian martyrs, for more pedestrian brown ones.


(Reporting By Tom Heneghan; editing by Philip Pullella and Giles Elgood)



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Japan scrambles fighters to meet China plane






TOKYO: Japan scrambled fighter jets on Thursday to head off a Chinese government plane flying towards disputed islands in the East China Sea, the defence ministry said.

It said the Y-12 propeller plane did not enter airspace around the Tokyo-controlled islands known as the Senkakus, which Beijing claims as the Diaoyus.

The aircraft headed back towards China after Japan's military planes became airborne, defence officials said, declining to give further details.

The incident came as three Chinese government ships sailed into territorial waters around the islands, Japan's coastguard said.

The three marine surveillance ships entered the 12-nautical-mile territorial zone off Uotsuri island shortly after 7:00 am (2200 GMT Wednesday), the coastguard said in a statement.

It said the trio left the zone after just over two hours.

Thursday's moves were the latest in a series by Chinese government ships since Tokyo nationalised three islands in the chain last September, reigniting the dispute.

They also came the day Japanese Prime Minister Shinzo Abe, speaking about the islands dispute, cited British former premier Margaret Thatcher and her thoughts on a 1982 war with Argentina over the Falkland Islands.

-AFP/fl



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Left retains Tripura,ruling parties ahead in Meghalaya, Nagaland

AGARTALA: The Left Front retained its bastion Tripura while the Naga People's Front in Nagaland and Congress in Meghalaya are set to return to power in the northeast states where counting of votes was taken up today.

The Left Front government in Tripura is poised for a fifth straight term since 1993, securing absolute majority by winning 31 seats in the 60-member Assembly (CPI-M 30 and CPI-1) and leading in 16 other seats while it is headed for a two thirds majority.

TRIPURA

PARTY LEADS WINS
CONGRESS 3 7
CPM 4 45
CPI 0 1

Prominent winners of the Left Front are jail minister Manindra Reang, finance minister Badal Chowdhury, agriculture minister Aghore Debbarma and industries minister Jitendra Chowdhury.

Chief minister Manik Sarkar is leading from Dhanpur. The Congress has won five seats, but its allies INPT and NCT have failed to open their accounts.

NAGALAND

PARTY LEADS WINS
CONGRESS 3 4
Janata Dal(United) 1 0
NPF 10 24
NCP 0 4
Rashtriya Janata Dal 1 0
Others 2 7

Among Congress candidates, former speaker who switched over to the Congress from the CPM Jitendra Sarkar won from Barjala, leader of the Opposition Ratan Lal Nath from Mohanpur and Dilip Sarkar from Badarghat.

In Nagaland, where there is no alliance among ruling Democratic Alliance of Nagaland partners, the Naga People's Front won 22 of the 59 seats and is leading in nine. Election to Tuensang Sadar 1 has been countermanded following the death of a Congress candidate.

Chief Minister Neiphu Rio won from Northern Angami-II by 12,671 votes over his nearest Congress rival Kevise Sogotsu.

Speaker Kiyanilie Peseyie won from Western Angami defeating Congress rival Asu Keyho by 1000 votes.NPCC president, S I Jamir won from the Dimapur-II defeating Independent Savi Liegise by 1615 votes.

In Meghalaya, the Congress won 12 seats and is leading in 17 in the 60-member Assembly.

MEGHALAYA

PARTY LEADS WINS
CONGRESS 20 11
UDP 3 5
NCP 1 1
National People's Party 1 1
Hill state People's
Democratic party
4
0
Others 12 2

Among Congress winners are cabinet minister H D R Lyngdoh and Prestone Tynsong. Both retained their seats.

Former alliance partners UDP won four seats and the HSPDP three.

Chief minister D D Lapang is leading by 7000 votes over his NPP rival Clement G Momin from the Ampati seat.

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Medicare paid $5.1B for poor nursing home care


SAN FRANCISCO (AP) — Medicare paid billions in taxpayer dollars to nursing homes nationwide that were not meeting basic requirements to look after their residents, government investigators have found.


The report, released Thursday by the Department of Health and Human Services' inspector general, said Medicare paid about $5.1 billion for patients to stay in skilled nursing facilities that failed to meet federal quality of care rules in 2009, in some cases resulting in dangerous and neglectful conditions.


One out of every three times patients wound up in nursing homes that year, they landed in facilities that failed to follow basic care requirements laid out by the federal agency that administers Medicare, investigators estimated.


By law, nursing homes need to write up care plans specially tailored for each resident, so doctors, nurses, therapists and all other caregivers are on the same page about how to help residents reach the highest possible levels of physical, mental and psychological well-being.


Not only are residents often going without the crucial help they need, but the government could be spending taxpayer money on facilities that could endanger people's health, the report concluded. The findings come as concerns about health care quality and cost are garnering heightened attention as the Obama administration implements the nation's sweeping health care overhaul.


"These findings raise concerns about what Medicare is paying for," the report said.


Investigators estimate that in one out of five stays, patients' health problems weren't addressed in the care plans, falling far short of government directives. For example, one home made no plans to monitor a patient's use of two anti-psychotic drugs and one depression medication, even though the drugs could have serious side effects.


In other cases, residents got therapy they didn't need, which the report said was in the nursing homes' financial interest because they would be reimbursed at a higher rate by Medicare.


In one example, a patient kept getting physical and occupational therapy even though the care plan said all the health goals had been met, the report said.


The Office of Inspector General's report was based on medical records from 190 patient visits to nursing homes in 42 states that lasted at least three weeks, which investigators said gave them a statistically valid sample of Medicare beneficiaries' experiences in skilled nursing facilities.


That sample represents about 1.1 million patient visits to nursing homes nationwide in 2009, the most recent year for which data was available, according to the review.


Overall, the review raises questions about whether the system is allowing homes to get paid for poor quality services that may be harming residents, investigators said, and recommended that the Centers for Medicare & Medicaid Services tie payments to homes' abilities to meet basic care requirements. The report also recommended that the agency strengthen its regulations and ramp up its oversight. The review did not name individual homes, nor did it estimate the number of patients who had been mistreated, but instead looked at the overall number of stays in which problems arose.


In response, the agency agreed that it should consider tying Medicare reimbursements to homes' provision of good care. CMS also said in written comments that it is reviewing its own regulations to improve enforcement at the homes.


"Medicare has made significant changes to the way we pay providers thanks to the health care law, to reward better quality care," Medicare spokesman Brian Cook said in a statement to AP. "We are taking steps to make sure these facilities have the resources to improve the quality of their care, and make sure Medicare is paying for the quality of care that beneficiaries are entitled to."


CMS hires state-level agencies to survey the homes and make sure they are complying with federal law, and can require correction plans, deny payment or end a contract with a home if major deficiencies come to light. The agency also said it would follow up on potential enforcement at the homes featured in the report.


Greg Crist, a Washington-based spokeswoman for the American Health Care Association, which represents the largest share of skilled nursing facilities nationwide, said overall nursing home operators are well regulated and follow federal guidelines but added that he could not fully comment on the report's conclusions without having had the chance to read it.


"Our members begin every treatment with the individual's personal health needs at the forefront. This is a hands-on process, involving doctors and even family members in an effort to enhance the health outcome of the patient," Crist said.


Virginia Fichera, who has relatives in two nursing homes in New York, said she would welcome a greater push for accountability at skilled nursing facilities.


"Once you're in a nursing home, if things don't go right, you're really a prisoner," said Fichera, a retired professor in Sterling, NY. "As a concerned relative, you just want to know the care is good, and if there are problems, why they are happening and when they'll be fixed."


Once residents are ready to go back home or transfer to another facility, federal law also requires that the homes write special plans to make sure patients are safely discharged.


Investigators found the homes didn't always do what was needed to ensure a smooth transition.


In nearly one-third of cases, facilities also did not provide enough information when the patient moved to another setting, the report found.


___


On the Web:


The OIG report: http://1.usa.gov/VaztQm


The Medicare nursing home database: http://www.medicare.gov/NursingHomeCompare/search.aspx?bhcp=1&AspxAutoDetectCookieSupport=1


___


Follow Garance Burke on Twitter at —http://twitter.com/garanceburke.


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Benedict XVI Begins Final Day as Pope












Pope Benedict XVI, the first pontiff to resign in 600 years, will step down today to lead a secluded life of prayer, far from the grueling demands of the papacy and the scandals that have recently plagued the church.


Benedict, 85, will spend a quiet final day as pope bidding farewell to his colleagues that have gathered in Vatican City to see him depart. His first order of business this morning is a meeting with the College of Cardinals in the Clementine Hall, a room in the Apostolic Palace, where Angelo Sodano, the dean of the College of Cardinals, is set to speak, but not Benedict.


Pope Benedict XVI Delivers Farewell Address


Despite the historical nature of Benedict's resignation, not all cardinals are expected to attend the event. With their first working meeting not until Monday, only around 100 cardinals are set to be in Vatican City Thursday, the Vatican press office said. Those who are there for Benedict's departure will be greeted by seniority.


In the evening, at 5:00 p.m. local time, Benedict will leave the Vatican palace for the last time to head to Castel Gandolfo, the papal summer residence outside of Rome. Before his departure the German-born theologian will say some goodbyes in the Courtyard of San Damaso, inside the Vatican, first to his Secretary of State Cardinal Tarcisio Bertone and then to the Swiss Guards who have protected him as pontiff.


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From there it is a short drive to a heliport for the 15-minute flight via helicopter to Castel Gandolfo, just south of the city. Benedict will not be alone on his journey, accompanied by members of the Pontifical Household such as two private secretaries, the head of protocol, his personal physician and his butler.


Once Benedict lands in the gardens at Castel Gandolfo, a group of dignitaries, such as the governor of the Vatican City state Giovanni Bertello, two bishops, the director of the pontifical villas, and the mayor and parish priest. Off the helicopter and into a car, Benedict will head to the palace that he will call home for the coming months. From a window of the palace, Benedict will make one final wave to the crowd at the papal retreat.


It is there, at 8:00 p.m., that Benedict's resignation will take effect once and for all. Once the gates to the residence close, the Swiss Guards will leave Benedict's side for the last time, their time protecting the pontiff completed.


Pope Benedict's Last Sunday Prayer Service


For some American Catholics in Rome for the historic occasion, Benedict's departure is bittersweet. Christopher Kerzich, a Chicago resident studying at the Pontifical North American College of Rome, said Wednesday he is sad to see Benedict leave, but excited to see what comes next.


"Many Catholics have come to love this pontiff, this very humble man," Kerzich said. "He is a man who's really fought this and prayed this through and has peace in his heart. I take comfort in that and I think a lot of Catholics should take comfort in that."


In his final address to the faithful as leader of the Roman Catholic Church, Benedict on Wednesday said his decision to resign was "the fruit of a serene trust in God's will and a deep love of Christ's Church." Before a crowd of hundreds of thousands of people in St. Peter's Square, Benedict said he was "deeply grateful for the understanding, support, and prayers of so many of you, not only here in Rome, but also throughout the world."


The date of the conclave to determine Benedict's successor has yet to be determined. In one of his last moves as pope, Benedict issued a decree permitting the cardinals to convene the conclave before the March 15 date that would have been required under the old rules.


Benedict is eventually planning to move to a monastery inside Vatican City once work there is finished, but until then he will call home the palace at Castel Gandolfo. He will be known as "pope emeritus" and don brown shoes given to him on his trip to Mexico, rather than the red ones he wore as pontiff.



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Hong Kong unveils budget, warns on global risks






HONG KONG: Hong Kong's finance chief on Wednesday unveiled a budget to kickstart growth in the city and temper property prices but warned the world economy could face headwinds from possible trade and currency battles.

During a speech interrupted by protests, Financial Secretary John Tsang also set out a series of measures to support the middle class and alleviate poverty in the first budget under an increasingly unpopular leader Leung Chun-ying.

The announcement came as data showed the southern Chinese financial hub saw growth of just 1.4 per cent in 2012 and was tipped to expand only 1.5-3.5 per cent this year.

In unveiling measures to boost the city's financial sector and private equity industry he warned: "The whole world will have to face wars on three fronts, namely 'currency', 'trade' and 'geopolitics'.

"As a highly open and small economy, Hong Kong will be impacted by the development of these wars to a certain extent."

His comment come after a sharp drop in the value of the yen sparked accusations of government meddling and concerns about a possible global war in which nations weaken their currencies to gains give a jolt to softening exports.

Tsang outlined plans to boost the city's financial sector, including extending profits tax exemption for offshore private equity funds, with an eye on regional rival Singapore.

He also unveiled a string of populist measures aimed at supporting the middle class and poor, while looking to address the city's chronically high property prices, which have doubled since 2009, squeezing average citizens.

Tsang vowed to increase land-supply to allow the building of more houses while quarterly rates amounting to HK$11.6 billion and covering 75 per cent of properties will be waived. That follows Friday's decision to double stamp duty on second homes to 8.5 per cent.

Also on Wednesday, Tsang said there will be a 75-per cent cut in salaries tax to a ceiling of HK$10,000.

However analysts said the budget would do little to improve the lot of the middle-class or poor or give a lift to the popularity of Leung, whose government has been rocked by a series of protests since he came to power in July.

Leung, who was chosen by a committee dominated by pro-Beijing elites, has seen his support rating drop after scandals involving illegal structures at his home, and last year came close to facing impeachment proceedings.

"For the middle class there is very minimal. If the middle class is renting property -- those rates are nothing to do with him," said Philip Hung, President of the The Taxation Institute of Hong Kong.

Hung added the level of some of one off measures, such as the salary-tax cut, was lower than last year.

Despite announcing a budget surplus of HK$64.9 billion ($8.4 billion) this year -- which swelled reserves to HK$734 billion -- the new measures totalled only HK$33 billion, down from the HK$80 billion-worth introduced last year.

In a sign of the dissatisfaction with the administration, dozens of people, some dressed as the Chinese "wealth god", waved banners and shouted slogans outside government headquarters demanding handouts of HK$10,000 and more welfare spending.

"The government should give money directly to the general public so that they can make ends meet," activist Tam Kwok-kiu told AFP, adding that the government is sitting on a fiscal surplus.

Two lawmakers including radical Leung Kwok-hung were escorted out of the chambers after interrupting Tsang's speech and calling him a "liar".

Tsang said he had had been listening to the concerns of the middle class, who are faced with rising bills for rent, medical care, and supporting their parents and children.

"I agree that middle-class families should be given some support. However, as one may appreciate, it is impracticable for the government to respond to each and every demand," he said.

- AFP/xq



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