The Tyranny Of The Minority

By Mass L. Usuf –December 18, 2015

Mass L. Usuf

“The political machine triumphs because it is a united minority acting against a divided majority” – Will Durant.

When the history of contemporary Sri Lankan politics is written, the current period will be recorded as a crucial era of its political landscape. Firstly, the uniqueness of the 8th Parliament, a national government, under the stewardship of Prime Minister Ranil Wickremesinghe; Secondly, the constant threat and evil foreboding from those outside the government. The salvos from the arsenal of the Joint Opposition against the government are unraveling itself in its multifaceted form each time. Its ultimate goal is to install a UPFA government. Obviously, the objective etched in their strategies is far from the greater interest of the nation and its people. Referring to the duties of the Opposition, the Universal Declaration on Democracy of the Inter-Parliamentary Union states in Article 11: “The opposition in parliament must show itself to be responsible and be able to act in a statesmanlike manner. It must engage in constructive and responsible opposition by making counter-proposals. In its action, the opposition must not seek to hinder pointlessly the action of the government but rather endeavour to encourage it to improve such action in the general interest”.

Compare this duty with the direct appeal of Dullas Alahapperuma, UPFA MP, to those who partnered with the national government to vote against the budget on the 19th of December. He did not mince his words and honestly said, “If you want a UPFA government”. It is said that in one’s life you either need inspiration or desperation. It seems that the joint opposition always gets the wrong inspiration which only helps in increasing its desperation. Who else would make such a plea after witnessing the second reading sailing through with a majority of 107 votes?

There are no long term friendships in politics. It will not be surprising to see the partners of the government jettisoning at the first sign of the ship becoming unseaworthy. All are just marking time like the proverbial make hay while the sun shines. Between the optimism and desperation of the government and the joint opposition are the people. They helplessly continue to watch each episode of the political dramatization being played out.

Generally, it is the majority that is known to be tyrannical exceptionally, the role has reversed. The so called joint opposition in the minority has never been so united before. They are well aware of the fragile nature of the unique partnership, first time in the political history of this country. The fluidity of the status quo is such that a united minority may triumph over a divided majority. If not machinations to create a crack is being conspired, one is certain that there is at least a watchful anticipation of a schism in the Maithri-Ranil partnership.

Criticise

Those who could not successfully make into the national government had to content themselves as partners in a so called joint opposition. It seems they have generously mandated themselves with one thing which can be described in one word, criticise.                                        Read More

Sri Lanka Year in Review 2015

16 Dec 2015

In the wake of general elections earlier this year, Sri Lanka has emerged with a renewed emphasis on economic reforms and fiscal consolidation, which has allayed concerns for many local and foreign investors.

Until August, election delays had effectively created a wait-and-see approach in the private sector, with investors pressing pause on several high-profile projects. Most notably, the country’s largest-ever foreign investment – the $1.4-bn Colombo Port City real estate project funded by the China Communications Construction Company – remains on hold as the year comes to a close. 

Road to fiscal consolidation

Released in November, the 2016 budget signalled the new coalition government’s first major policy declaration and included a reduction in investment ownership restrictions and a variety of tax incentives. The government will be looking for these reforms to help boost foreign direct investment (FDI), which has averaged just 1.5% of GDP over the last five years, compared to an average of 3.1% among other “BB”-rated countries.

Nonetheless, concerns remain over the government’s ability to improve revenues while also reining in expenditures. The government announced a 5.9% fiscal deficit target for 2016, only a slight decline over the 6% forecast for 2015, and according to ratings agency Fitch, the budget “provides no clear plan for fiscal consolidation over the medium term”.

Government revenues have been in decline since 2010, falling to just 12.3% of GDP in 2014 due to weak tax administration and collection structures. A further 6.4% drop in income tax collection is expected in 2016, placing greater pressure on other revenue streams to support the government’s projected 38% rise in overall revenue. 

Adding to the pressure is a continued rise in expenditures, which are expected to reach 22.3% of GDP in 2016, up from 19.1% in 2015, fuelled by major government investments in infrastructure, health care and education.

The fiscal imbalance has been exacerbated by public sector salary hikes and increased social welfare spending in 2015 – some of the first moves made by the new coalition government – alongside price controls on green-leaf tea and subsidies on natural rubber and fertilisers.

Market measures

To help fund the deficit, Sri Lanka’s government visited international capital markets twice in 2015. In late May the country sold a $650m, 10-year sovereign bond at a rate of 6.125%, while the second 10-year oversubscribed bond offer, issued in late October, sold at a coupon rate of 6.85%, raising some $1.5bn.  

The higher pricing of the second offer was attributed in part to a decline in Sri Lanka’s foreign reserves – which fell from $8.8bn to $5.6bn in the 12 months to October 2015, according to figures from the Central Bank of Sri Lanka (CBSL) – as well as broader global economic uncertainty.

The rupee’s decline, which mirrors a general weakening of Asian currencies this year, reached a record low of LKR143:$1 in late November, down some 10.5% year-to-date.

Trade figures

Declining crude oil prices – which fell by more than 50% in 2014 – offered some relief for the country’s balance of payments, and were ultimately passed on to consumers and businesses through state-led reductions in gasoline prices.

The country, which hopes to achieve 100% energy self-sufficiency by 2030, currently imports fossil fuels to satisfy around 44% of domestic consumption. Energy imports have traditionally cost the country $5bn per annum in foreign exchange, equivalent to roughly 25% of total import expenditure and nearly half of export income. According to the CBSL, declining prices and imports led to a 60.5% reduction in the nation’s fuel import bill as of August.

However, these energy savings have been largely offset by Sri Lanka’s rising import bill overall. An easing of duties saw consumer spending on imported motor vehicles nearly double y-o-y in the first eight months of 2015 to $905m, according to the CBSL, though loan-to-value caps and higher taxes on vehicles, along with the depreciation of the rupee, are expected to curb consumer appetite into 2016.

Overall, exports continued to decline as a percentage of GDP in 2015, after falling by double digits in 2013 and 2014. On a cumulative basis, export earnings fell by 3.4% y-o-y in the first eight months of 2015, according to central bank data, largely due to weak global demand.

Industry stakeholders continue to underscore the importance of diversifying and adding value to Sri Lanka’s export basket and trade relationships, replicating the country’s earlier success in the garment market. A variety of sectors, including branded tea, rubber products, gems, IT and business process outsourcing, are all seen as potential avenues for expansion.

Tourism ranks as top performer

Tourism, meanwhile, posted record growth in 2015. Thanks in large part to Chinese tourists, whose numbers have risen more than 10-fold since the civil war ended in 2009, Sri Lanka saw arrivals surge over the year, surpassing the 1.5m mark in November for an 18.1% y-o-y increase.

Along with inward remittances, tourism represents an important component of Sri Lanka’s foreign exchange earnings, though both are vulnerable to volatility in international economic conditions.

As major international hotels, including luxury players Shangri-La and Grand Hyatt, continue to emerge in Sri Lanka, the country will be looking to reinforce its tourism profile overseas in 2016 and beyond.

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Optimising tax revenue and encouraging better tax compliance 

Friday, 18 December 2015

In 2010, Dr. Saman Kelegama, Executive Director of the Institute of Policy and a member of the Taxation Commission was quoted in the media as stating: “The tax system is not delivering the potential revenue in Sri Lanka. As income increases in a country, the revenue also increases although the rate of increase will decline after some time. This is not happening in Sri Lanka. Sri Lanka’s per capita income has increased from $ 720 in 1995 to $ 2053 in 2009 but our tax revenue has declined from 20.4% GDP to 14.6% GDP during this period. Almost 90% of revenue comes from taxes (10% is accounted by non-tax sources). Tax elasticity measures the extent to which the tax system generates revenue in response to increase in income without change in the tax rates. This is less than unity or one and not a healthy sign. The key reason for this is that the tax base has not broadened in line with the increase in income or economic activities. The reason for the weak tax base is the multitude of tax exemptions, tax evasion, many discretionary tax measures in operation, and weak tax administration.”

Optimising Tax Revenue and Encouraging Better Tax Compliance by Thavam Ratna

Prime Minister Questions The Viability Of Unfunded Pensions

By Hema Senanayake –December 18, 2015

Hema Senanayake

Prime Minister is of the view that unfunded-liability pensions cannot prevail. But trade unions want to keep intact the present non-contributory pension for public sector employees who would be recruited from January 2016 onwards too. This still is an unresolved budgetary proposal.

However, the government has agreed not to go ahead with that particular budgetary proposal until the proposal is renegotiated with trade unions and agreed upon. Trade unions do oppose to the contributory system. Trade union leaders vowed to launch nation-wide strike again if the government would not withdraw the proposal.

Addressing this particular issue in his special speech made to parliament on 14th December, P.M. pointed out that the present pension system is a system of unfunded-liability and the government has proposed to change it to a system of funded-liability system only for the new recruiters. If this is the theory behind this proposal then unfortunately I am not agreeable with it. Why?

Before, I explain it let us just have a look about the system available for private sector employees in order to ensure their old-age income security. The system is very peculiar. There is no pension for them. Instead they are paid back their own savings in EPF and ETF together with accrued interest when they retire. EPF and ETF are just saving programs not pension programs. Out of the money they get from EPF and ETF they can deposit up to Rs. 1.0 million in a bank and would receive 15% rate of interest per annum, whereas the market rate of interest is around mid-single digit. The difference between the market rate and the mandatory 15% interest is reimbursed to the bank by the Treasury and this too is unfunded liability on the part of the Treasury in ensuring an income for senior citizens.

Then again, the government previously told in parliament and outside the parliament that the government wanted to completely do away with the private placements in issuing government bonds, because EPF and ETF are benefitted by securing higher rate of interest when the bonds are issued through auctions. Formerly, in issuing bonds the Central Bank used public auctions and the mechanism of private placements in order to keep the rates within the macro economically desired levels and as a result low rates of interest became the new normal towards the end of 2014. Low rates of interest are good for the growth of the economy but bad for the EPF and ETF. Now, what would you do? Would you keep the rates low to promote economic growth or would you let the rates to go up to save EPF and ETF?                                                  Read More

Sangayana for the betterment of the Buddha Sasana

2015-12-18
Many voices are being heard from many quarters on the need to conduct a Sangāyanā for the betterment of the Buddha Sāsana. It has been in the workplan of the government since its inception as well.  Good thoughts. And probably a well-timed move as well. 

Sangayana for the Betterment of the Buddha Sasana by Thavam Ratna

Hate Incidents and Religious Rights in the Post-

war Sri Lanka

by Mohammed Ajiwadeen : Dec 18, 2015

United Nations experts called on Sri Lanka to adopt urgent measures to stop the promotion of racial and faith-based hatred, and violence against the minority communities, after the hard-line Bodu Bala Sena (BBS) staged a large anti-Muslim rally in Aluthgama on 15th June2014 which resulted in attacks against the Muslims (The Hindu03.07.2014).

Hate Incidents and Religious Rights in the Post-war Sri Lanka by Thavam Ratna

Premier doesn’t know person who can directly call British PM has been recalled ?

Dec 18, 2015

Prime minister Ranil Wickremesinghe told parliament today (18) that his government was having good diplomatic ties with Britain. He said that relations were at such a level due to the skills of the acting high commissioner, in the absence of a permanent appointee. His skills are such that he can directly telephone the British prime minister and his predecessors, said the PM.

Wickremesinghe was referring to acting high commissioner in the UK Dr. Chanaka Thalpahewa. It was foreign affairs ministry supervising MP at the time Sajin Vaas Gunawardena, who gave him the posting in November 2014. At that time, even we alleged that Dr. Thalpahewa is a servant of Sajin Vaas. But, he answered us through his deeds.

 

Dr. Thalpahewa was able to organize president Maithripala Sirisena’s British tour in March commendably. In addition to the British PM, he arranged a personal meeting between the president and Queen Elizabeth amidst numerous disruptions by the Diaspora. Also, through his professional relations with Cherie Blair as a lawyer, he was able to bring ex-PM Tony Blair and his family for a vacation in Sri Lanka, during which he also delivered the Kadirgamar memorial lecture.

 

Dr. Thalpahewa was able to bring the high commission’s administration, which had been made a muddle by Dr. Chris Nonis, to commendable levels. Sri Lankans living in London are of the view that Dr. Thalpahewa was the only person to properly coordinate relations between the various communities and religious places in London in the recent past.

 

A person of such skills has received a personal recommendation by foreign affairs minister Mangala Samaraweera for a three month extension as the acting high commissioner, but ministry secretary Chitranganie Wagiswara had recalled him to Colombo at the insistence of Austin Fernando, better known as the ‘Yaha Paalana monitoring govenor’, a fact the PM seems to be not aware of, going by the remarks he made in parliament today.

 

Dr. Thalpahewa is the recipient of a doctorate on international relations from Cambridge University of England. His recent book ‘Peaceful Intervention in Intra-State Conflicts’ is receiving international acclaim.

Award winning factory closed over Rs. 2,500 pay hike dispute in EPZ 

By Shamindra Ferdinando-December 18, 2015, 12:00 pm

Among those who had won presidential awards at Wednesday’s ceremony at the Nelum Pokuna theatre was Everest Industrial Lanka Pvt Limited recently closed due to a strike launched by its workers demanding a Rs. 2,500 salary increase proposed by the government.

The factory situated at the Katunayake Export Processing Zone (EPZ) received presidential awards for electric and electronic export category for 2012 and 2013.

The Export Development Board (EDB) recognised top exporters for their performances from 2010 to 2013 at a ceremony held under the patronage of President Maithripala Sirisena.

Although there hadn’t been any reference during the awards ceremony to the crisis

caused by a section of the workers, well informed sources told The Island that demand for an immediate increase in workers’ salaries by Rs. 2,500 had led to the closure.

Sources said that a section of workers had launched a protest soon after the government, during its 100-day project, proposed a Rs. 2,500 salary increase to private sector workers. Amidst the rapidly deteriorating situation at the factory, the management in consultation with the Board of Investment (BoI) and the Manufacturers Association increased workers’ salaries by Rs. 1,000. However, some workers told the management that they should be paid the full amount or face the consequences, causing the top management to seek the intervention of the Labour Department.

The Syrian-owned venture had commenced commercial operations during 2007 at the height of eelam war IV and was one of the most successful foreign enterprises active over the past eight years. Sources said that the factory had experienced severe difficulties due to cancellation of almost all orders due to labour unrest. Subsequently, the management paid workers’ salaries for a few months in spite of the factory being closed, sources said, adding that the top management had finally decided to terminate services of those who had been undermining the successful venture.

The group managed production facilities in Dubai, Saudi Arabia, Egypt, Sri Lanka and Syria. Sources said that the Syrian project had been disrupted due to violence there whereas the successful project to supply the lucrative Indian market was now in shambles.

Responding to a query by The Island, sources said that the management was in the process of exploring the possibility of paying compensation to the workers. In accordance with labour laws, each worker has to be paid two and half months’ salary, sources said, adding that the workforce comprised over 550 persons. Sources said that the company would need as much as Rs. 60 mn to pay compensation.

Negotiations between the workers and the Labour Department are nearing completion.

Addressing the Nelum Pokuna gathering, President Maithripala Sirisena stressed the importance as well as the urgent need to enhance exports. Assuring that the government would take measures to strengthen exports, he said that the new administration had gone to the extent of setting up a new ministry to promote exports.

Industry sources alleged that a certain trade union had deceived the workers at the Everest Industrial Lanka Pvt Limited in spite of them being well paid with free three meals a day, transport as well as uniform. Even workers represented by lawyers had, at one point, suggested that they should reach an understanding with the management to avoid an unfortunate situation, sources said.

Sources said that unless the government initiated an immediate dialogue there could be widespread turmoil at EPZs with interested parties causing unrest.

Sale of bottled fresh air

Besides, natural pollution, most air pollution in the UK comes from road transport and residential emissions which are said to be tolerable less than 5 on the air pollution scale. Unlike in Sri Lanka, people in the UK spend at least 90% of their time indoors.

by Victor Cherubim

( December 18, 2015, London, Sri Lanka Guardian) Everyone carries a bottle of water during the summer for relief from exhaustion during travel in crowded trains and the underground. Have you heard of bottled air, in cans? Is it real or fantasy?

“Vitality Air”, a Canadian “pressured air” company is hoping to sell fresh mountain air in cans and bottles to the Chinese in Beijing after the smog which engulfed the city in early December this year. Parts of China are noted to be cloaked in smog especially during the winter months when homes and power plants burn coal to keep warm.

Selling ice to the Eskimos or special desert sands to the Saudi’s is just like selling air to the Chinese. If China can import food, water, oil and minerals, there is no reason why they shouldn’t have the right to import air.

Business is business for the entrepreneurs at Edmonton, Canada who say there is a huge demand for their product around the world, but especially in China.

Price of Air

Air sells for $14 to $20 Canadian dollars depending on the size of the canister. Why wait days or travel miles to import air from Canada, when it would be cheaper to sell Sri Lankan “Fresh Air” to our friends in China?

It is not really the Chinese at fault for their poor air quality. Northern China is often cloaked in smog, similar to the smog in Southern California some years back. But it was not only in China where they had to wear facial masks to protect them from breathing foul air. Many will remember that most Japanese too wore masks for protection against nuclear reactor disaster.

Poor Air quality

Scientists have different strategies for calculating air pollution. Air pollutants are “ozone, fine particulate matter, nitrogen dioxide, carbon monoxide, sulphur dioxide and total reduced sulphur compounds, or perhaps, a mixture of each”.

Air Quality Index (AQI) is an indicator of air quality that is measured on a scale of one to ten. Monitoring stations around the country report direct measurement indicators of industrial facilities/traffic levels on roads, airports and soon to come homes in the UK.

We are told Heathrow airport pollutes the air to cause approx. 10,000 deaths each year. The decision of the third runway at Heathrow has partly been kicked into the long grass and partly until the London Mayoralty election, due to serious noise and air pollution levels.

Air quality data are essential for assessing public health impact caused by poor air quality. The challenge is to get accurate measurements of air quality. We can examine the “number of person days that a region has unhealthy air”.

Population exposure

“Person days are the number of persons living in an exposed region times the number of days the pollutants exceed a health standard. Person-days give an indication of the population burden of air pollution exposure.

The dust from storms in the Sahara last year (2014) affected southern Europe. The winds from the south and east brought the dust to the UK along with the “unspoken industrial pollution from Europe.”

Besides, natural pollution, most air pollution in the UK comes from road transport and residential emissions which are said to be tolerable less than 5 on the air pollution scale. Unlike in Sri Lanka, people in the UK spend at least 90% of their time indoors.

Indoor air quality

It is not only outdoors but indoor air quality which has a major influence on health comfort and wellbeing. The UK is suddenly awakening to the “Sick building syndrome,” with health inspections of buildings. new and old. From 1 October 2015, every house or flat rented out should have a Carbon Monoxide detector alarm installed, or face heavy fines.

Our approach to air quality in Sri Lanka

I need hardly state that we in Sri Lanka, get easily roused to anger for trivial matters, we have a habit of “arguing over nothing”. We are “the most tolerant nation on earth” when it comes to pollution of our water, the air that we breathe, the noise level on our streets.

We need to give more attention to the quality of our life than the model of our cars we drive.

Ukraine refuses to repay $3bn loan owed to Russia after bitter row

Kiev’s rejection of payment proposal could hinder Ukrainian efforts to restructure country’s growing debt with international creditors

Ukrainian Prime Minister Arseniy Yatsenyuk speaking during a cabinet meeting on Friday. He blamed the Kremlin for scuppering the repayment deal. Photograph: Andrew Kravchenko/AP

Phillip Inman Economics correspondent-Friday 18 December 2015

Ukraine has refused to repay Russia a $3bn (£2.01bn) loan after a bitter row that could put on hold Kiev’s plans to restructure its growing debt with international creditors.

The Ukrainian government rejected a Kremlin proposal for repayments in three tranches of $1bn, putting the entire amount on the path to default.

Moscow reacted angrily to the move and threatened to sue for the return of its funds, lent to the former president president, Viktor Yanukovych, who was ousted in February last year.

The loan repayment is due on Sunday but Ukraine has another 10 days from then to sign a deal before an official default is triggered, but after an eleventh hour attempt by Germany to broker a deal failed, the two sides appeared on a collision course.

“Since Russia has refused, despite our repeated efforts to sign a restructuring agreement … to accept our proposals, the cabinet is imposing a moratorium on repayment of the so-called Russian bond,” Arseniy Yatsenyuk, Ukraine’s prime minister, said in a government meeting.

He also said Ukraine would cancel payments on $507m of Ukrainian commercial debt held by Russian banks.

The moratorium would be in place “until the acceptance of our restructuring proposals or the adoption of the relevant court decision ... We are prepared for court action from the Russian side,” he said.

Ukraine blamed the Kremlin for scuppering a deal after Moscow’s negotiators refused to join a creditors club organised by the International Monetary Fund (IMF), which has lent Kiev $17.5bn.

Ukraine has been at loggerheads with Vladimir Putin for almost two years over accusations he is financing rebel soldiers in the east of the country.

This week, Nato’s top civilian official renewed calls for Russia to remove troops from eastern Ukraine, citing Putin’s recent admission that it had military advisers in the region.

 Vladimir Putin: there is Russian military presence in Ukraine.

Jens Stoltenberg, the Nato secretary general, said it was clear Russia had soldiers in the region and they should be withdrawn under the terms of the peace deal it helped broker in February.

Ukraine’s parliament, which has descended into fistfighting during several heated debates this year, has repeatedly called on Moscow to relinquish Crimea, which voted to join the Russian federation in an election Kiev says was rigged.

The dispute is further complicated by fears that Ukraine is heading for a wider default after the parliament rejected a new tax code and the draft 2016 budget, both considered essential elements of the restructuring demanded by the IMF as the price of its loan.

The Ukrainian leadership has also watched warily as developments in Syria and the refugee crisis have forced Europe to consider Putin as an ally, downgrading concerns over Crimea and the simmering tensions in Donetsk and other eastern regions.

A proposed gas pipeline from Russia to Germany that would bypass Ukraine and which European commission officials have said appears to break EU rules, has also raised tensions.

Ukraine included the two-year bond in its external commercial debt, but Russia has refused to accept the terms it has offered, arguing that the bond was an official bilateral loan.

Kiev’s finance ministry said it was still committed to negotiating a restructuring agreement in good faith with Russia.

Russia is an official creditor under international agreements, which means that to qualify for more lending from the IMF, Ukraine must show it is open to negotiating in good faith.

William Jackson, an emerging markets analyst at Capital Economics, said the implications of the moratorium were unclear.

“According to a recent decision, the IMF can continue to lend to countries in arrears to official creditors ‘subject to the debtor’s good faith efforts’ to reach a deal. The Ukrainian authorities have claimed that they have already done so, and are prepared to continue in a similar vein. But it’s not difficult to envisage any debt talks breaking down,” he said.

“Given this, as well as the IMF’s concerns voiced today about parliament’s rejection of the new tax code and 2016 budget, there seems to be a growing risk that the country’s bailout could be put on hold.”

Cameron hails 'pathway' to agreement on EU renegotiation

David Cameron says he is hopeful a deal with fellow European leaders can be achieved by February, as Angela Merkel signals that a compromise is possible.

FRIDAY 18 DECEMBER 2015

The Prime Minister is seeking a renegotiation of Britain's relationship with the EU ahead of an in/out referendum, and has been trying to convince other leaders to back his demands, including a four-year ban on European migrants claiming in-work benefits in the UK.

He set out his case in a 40-minute presentation in Brussels on Thursday night, referring to the "unprecedented" levels of immigration Britain had experienced and the effect this was having on public services.

He said afterwards: "I would say today what has happened is we have taken a big step to a better deal for Britain, but there is still a lot of hard work to be done, and it is going to need to be done between now and February 18.

'Nothing is certain'

"Nothing is certain in life, nor in Brussels, but what I would say is there is a pathway through this to a deal in February."

European Council President Donald Tusk said he aimed to table a text on proposed reforms at a summit in February, but he and other Euopean leaders made it clear that they would not agree to any proposals that were discriminatory.

Mrs Merkel said European leaders had been adamant that they wanted the UK to remain in the EU and there was a "readiness to compromise".

But she added that this was "always with a regard to the protection of the fundamental principles of the EU", such as non-discrimination and freedom of movement. "I think with a good will, we can find a good way," she said.

Mr Cameron is facing pressure from Conservative MPs to secure concessions ahead of the referendum on EU membership promised by the end of 2017. He had hoped to agree a deal by Christmas, but now sees February as a more realistic target.

'Hammered'

Ukip leader Nigel Farage said: "David Cameron came, saw, and got hammered. How many times can his little plans be rejected? He was told to come back in February, when I suspect he will probably get a few minor concessions."

Defence Secretary Michael Fallon said the government was "deadly serious" about measures to prevent the country's benefits system being a "magnet for migration".

He played down the prospect of an "emergency brake" on migration being a suitable alternative to the welfare curbs proposed by Mr Cameron, telling BBC Radio 4's Today programme that a "short-term solution" would not be enough.

Israeli forces shoot to kill, deny first aid

Abdallah Nasasra (via Quds)

Mourners pray during the funeral of Samah Abd al-Mumin Abdallah in the West Bank city of Nablus on 17 December.Nedal EshtayahAPA images

Maureen Clare Murphy-18 December 2015

The rights group B’Tselem decried Israel’s “excessive and unwarranted use of lethal gunfire” as its forces killed seven more Palestinians in the last week, and a woman died of her injuries after being shot at a checkpoint in November.

Israeli Forces Shoot to Kill, Deny First Aid by Thavam Ratna

Yemeni forces seize northern Houthi towns as peace talks near collapse 

Houthi sources tell MEE they consider ceasefire over and snub fourth day of talks, after lightning advances by Saudi-backed forces 
Pro-Hadi forces have taken over two towns in northern Yemen (AFP) 

Nawal Al-Maghafi, Video Editor-Friday 18 December 2015

Biel, Switzerland - Houthi rebel leaders have failed to attend a fourth day of peace talks, saying they considered Yemen's ceasefire over after troops allied with the Yemen government staged a lightning attack to seize a northwestern Houthi-controlled town.

The AFP news agency reported on Friday that troops, trained and equipped in Saudi Arabia, had seized the town of Hazm, the capital of the northern Yemeni province of Jawf, about 100km from the Saudi border. 

Yemeni government forces also said they had captured Harad, about 15km from the Saudi border late on Thursday. One official said about 1,000 soldiers and aircraft from the Saudi-led coalition were involved in the attack, which killed dozens of Houthi fighters. 

The attacks placed huge pressure on peace negotiations in Biel, Switzerland, between the Houthi and their allies, the General People's Congress, and the government of Abd Rabbuh Mansour Hadi and its backers in a Saudi-led coalition.  

Houthi and GNC delegates told Middle East Eye that the ceasefire in Yemen was considered defunct, and failed to attend both morning and afternoon sessions. However, there has been no official statement that they had pulled out entirely. 

Fighting has continued to rage in much of Yemen, despite a ceasefire officially in place since Tuesday morning.

The reported seizure of Harad leaves pro-government forces just a few kilometres from the Red Sea port of Midi, which has been under Houthi control since 2010, military sources said.

Military sources in Yemen told MEE that pro-government troops were advancing "very quickly". 

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Yemen Geneva talks. Where are the Houthis?

5:51 AM - 18 Dec 2015

A Saudi source, from the border town of Najran, told MEE that the Houthis had also stepped up bombardment overnight, with fierce fighting taking place. 

According to the source, Houthis rockets struck the ground east of the Saudi town of Najran but caused no casualties, while the others were intercepted by Saudi forces near the city of Marib inside Yemen. 

In a statement today, the Saudi military warned it would not remain committed to a ceasefire amid current threats to its territories and vowed to step up military strikes against the Houthi militias and their supporters.

The north has experienced clashes throughout the week, with MEE reporting intense fighting in the Hajjah province, home to Harad, on Wednesday and Thursday.

Additional reporting by Saeed al-Batati.