French Council Strikes Down 75% Tax Rate on Rich





PARIS — France’s Constitutional Council on Saturday struck down the Socialist government’s plan to impose a 75 percent marginal income tax rate on the wealthy, a measure that figured prominently among the campaign promises of President François Hollande and that had become a divisive emblem of his approach to cutting the budget deficit.




Prime Minister Jean-Marc Ayrault quickly pledged that the government would reintroduce a revised version of the tax for next year to address the criticisms of the Constitutional Council, which ruled that the measure did not tax affected households equally.


The 75 percent rate was always a symbolic political gesture, as Mr. Hollande himself has acknowledged. It was to expire in two years and would have applied only to annual income above 1 million euros, or about $1.3 million, and so would have affected no more than a few thousand taxpayers.


Tax revenues from the measure would have reached just a few hundred million dollars, little more than a bucket of water in France’s deficit sea; the budget deficit is about $112 billion this year.


The council ruled that the tax was unfair because it would have applied unevenly to different households with the same combined income. A couple making a combined 1.5 million euros a year, for instance, would be exempt from the tax so long as both partners earned less than 1 million euros individually. If one partner earned more than 1 million euros, however, the couple would have been required to pay the 75 percent rate on their combined earnings of more than 1 million.


Mr. Hollande introduced the tax during his presidential campaign — a sharp break from his center-right rival, Nicolas Sarkozy, who had established a tax ceiling of 50 percent of earnings — to prove his leftist credentials in the face of a challenge from a candidate supported by the Communists, Jean-Luc Mélenchon.


Among the opposition on the right, politicians said the 75 percent rate was tantamount to theft, calling it “confiscatory” and insisting that it would drive investors and entrepreneurs out of the country. There have been reports and rumors of as many as 5,000 wealthy French citizens moving out of the country, though there are no official figures.


Most recently, in what has grown into a minor national scandal, it was revealed that the actor Gérard Depardieu would be taking up residence in Belgium, where there is no wealth tax and where the maximum income tax rate is 50 percent.


In France, without the 75 percent tax rate, the highest income tax rate will now be 45 percent. (With the invalidation of the 75 percent rate, French Twitter users have implored Mr. Depardieu to return to France, some facetiously, some not.) The 45 percent rate, which will apply to income above 150,000 euros, or about $198,000, is itself an increase from the previous top rate of 41 percent.


The Constitutional Council approved the increase in its ruling Saturday, along with several general elements of the government’s planned budget for next year: an increase in tax withholdings, the taxing of capital gains at the same rates as income tax and a rise in the wealth tax rates.


It invalidated a proposed 75 percent tax on complementary retirement pensions, however, calling it “confiscatory.” The council reduced the rate to 68 percent.


Mr. Hollande has committed to cutting France’s budget deficit, which stood at 4.5 percent of gross domestic product this year, to 3 percent next year. But he has emphasized tax increases rather than spending cuts. To meet the target, Parliament this month approved a spending freeze that would save about $13 billion, along with $26 billion in additional tax revenues — including those meant to come from the 75 percent rate — for the 2013 budget. But the budget was drawn up on the basis of the government’s growth estimate of 0.8 percent, a number viewed by many economists in France and elsewhere as unrealistically high.


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Elwood V. Jensen, Pioneer in Breast Cancer Treatment, Dies at 92


Tony Jones/Cincinnati Enquirer, via Associated Press


Elwood V. Jensen in 2004.







Elwood V. Jensen, a medical researcher whose studies of steroid hormones led to new treatments for breast cancer that have been credited with saving or extending hundreds of thousands of lives, died on Dec. 16 in Cincinnati. He was 92.




The cause was complications of pneumonia, his son, Thomas Jensen, said.


In 2004 Dr. Jensen received the Albert Lasker Basic Medical Research Award, one of the most respected science prizes in the world.


When Dr. Jensen started his research at the University of Chicago in the 1950s, steroid hormones, which alter the functioning of cells, were thought to interact with cells through a series of chemical reactions involving enzymes.


However, Dr. Jensen used radioactive tracers to show that steroid hormones actually affect cells by binding to a specific receptor protein inside them. He first focused on the steroid hormone estrogen.


By 1968, Dr. Jensen had developed a test for the presence of estrogen receptors in breast cancer cells. He later concluded that such receptors were present in about a third of those cells.


Breast cancers that are estrogen positive, meaning they have receptors for the hormone, can be treated with medications like Tamoxifen or with other methods of inhibiting estrogen in a patient’s system, like removal of the ovaries. Women with receptor-rich breast cancers often go into remission when estrogen is blocked or removed.


By the mid-1980s, a test developed by Dr. Jensen and a colleague at the University of Chicago, Dr. Geoffrey Greene, could be used to determine the extent of estrogen receptors in breast and other cancers. That test became a standard part of care for breast cancer patients.


Scientists like Dr. Pierre Chambon and Dr. Ronald M. Evans, who shared the 2004 Lasker prize with Dr. Jensen, went on to show that many types of receptors exist. The receptors are crucial components of the cell’s control system and transmit signals in an array of vital functions, from the development of organs in the womb to the control of fat cells and the regulation of cholesterol.


Dr. Jensen’s work also led to the development of drugs that can enhance or inhibit the effects of hormones. Such drugs are used to treat prostate and other cancers.


Elwood Vernon Jensen was born in Fargo, N.D., on Jan. 13, 1920, to Eli and Vera Morris Jensen. He majored in chemistry at what was then Wittenberg College in Springfield, Ohio, and had begun graduate training in organic chemistry at the University of Chicago when World War II began.


Dr. Jensen wanted to join the Army Air Forces, but his poor vision kept him from becoming a pilot. During the war he synthesized poison gases at the University of Chicago, exposure to which twice put him in the hospital. His work on toxic chemicals, he said, inspired him to pursue biology and medicine.


Dr. Jensen studied steroid hormone chemistry at the Swiss Federal Institute of Technology on a Guggenheim Fellowship after the war. While there, he climbed the Matterhorn, one of the highest peaks in the Alps, even though he had no mountaineering experience. He often equated his successful research to the novel approach taken by Edward Whymper, the first mountaineer to reach the Matterhorn’s summit. Mr. Whymper went against conventional wisdom and scaled the mountain’s Swiss face, after twice failing to reach the summit on the Italian side.


Dr. Jensen joined the University of Chicago as an assistant professor of surgery in 1947, working closely with the Nobel laureate Charles Huggins. He became an original member of the research team at the Ben May Laboratory for Cancer Research (now the Ben May Department for Cancer Research) in 1951, and became the director after Dr. Huggins stepped down.


He came to work at the University of Cincinnati in 2002, and continued to do research there until last year.


His first wife, the former Mary Collette, died in 1982. In addition to his son, Dr. Jensen is survived by his second wife, the former Hiltrud Herborg; a daughter, Karen C. Jensen; a sister, Margaret Brennan; two grandchildren; and three great-grandchildren.


Dr. Jensen’s wife was found to have breast cancer in 2005. She had the tumor removed, he said in an interview, but tested positive for the estrogen receptor and was successfully treated with a medication that prevents estrogen synthesis.


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Elwood V. Jensen, Pioneer in Breast Cancer Treatment, Dies at 92


Tony Jones/Cincinnati Enquirer, via Associated Press


Elwood V. Jensen in 2004.







Elwood V. Jensen, a medical researcher whose studies of steroid hormones led to new treatments for breast cancer that have been credited with saving or extending hundreds of thousands of lives, died on Dec. 16 in Cincinnati. He was 92.




The cause was complications of pneumonia, his son, Thomas Jensen, said.


In 2004 Dr. Jensen received the Albert Lasker Basic Medical Research Award, one of the most respected science prizes in the world.


When Dr. Jensen started his research at the University of Chicago in the 1950s, steroid hormones, which alter the functioning of cells, were thought to interact with cells through a series of chemical reactions involving enzymes.


However, Dr. Jensen used radioactive tracers to show that steroid hormones actually affect cells by binding to a specific receptor protein inside them. He first focused on the steroid hormone estrogen.


By 1968, Dr. Jensen had developed a test for the presence of estrogen receptors in breast cancer cells. He later concluded that such receptors were present in about a third of those cells.


Breast cancers that are estrogen positive, meaning they have receptors for the hormone, can be treated with medications like Tamoxifen or with other methods of inhibiting estrogen in a patient’s system, like removal of the ovaries. Women with receptor-rich breast cancers often go into remission when estrogen is blocked or removed.


By the mid-1980s, a test developed by Dr. Jensen and a colleague at the University of Chicago, Dr. Geoffrey Greene, could be used to determine the extent of estrogen receptors in breast and other cancers. That test became a standard part of care for breast cancer patients.


Scientists like Dr. Pierre Chambon and Dr. Ronald M. Evans, who shared the 2004 Lasker prize with Dr. Jensen, went on to show that many types of receptors exist. The receptors are crucial components of the cell’s control system and transmit signals in an array of vital functions, from the development of organs in the womb to the control of fat cells and the regulation of cholesterol.


Dr. Jensen’s work also led to the development of drugs that can enhance or inhibit the effects of hormones. Such drugs are used to treat prostate and other cancers.


Elwood Vernon Jensen was born in Fargo, N.D., on Jan. 13, 1920, to Eli and Vera Morris Jensen. He majored in chemistry at what was then Wittenberg College in Springfield, Ohio, and had begun graduate training in organic chemistry at the University of Chicago when World War II began.


Dr. Jensen wanted to join the Army Air Forces, but his poor vision kept him from becoming a pilot. During the war he synthesized poison gases at the University of Chicago, exposure to which twice put him in the hospital. His work on toxic chemicals, he said, inspired him to pursue biology and medicine.


Dr. Jensen studied steroid hormone chemistry at the Swiss Federal Institute of Technology on a Guggenheim Fellowship after the war. While there, he climbed the Matterhorn, one of the highest peaks in the Alps, even though he had no mountaineering experience. He often equated his successful research to the novel approach taken by Edward Whymper, the first mountaineer to reach the Matterhorn’s summit. Mr. Whymper went against conventional wisdom and scaled the mountain’s Swiss face, after twice failing to reach the summit on the Italian side.


Dr. Jensen joined the University of Chicago as an assistant professor of surgery in 1947, working closely with the Nobel laureate Charles Huggins. He became an original member of the research team at the Ben May Laboratory for Cancer Research (now the Ben May Department for Cancer Research) in 1951, and became the director after Dr. Huggins stepped down.


He came to work at the University of Cincinnati in 2002, and continued to do research there until last year.


His first wife, the former Mary Collette, died in 1982. In addition to his son, Dr. Jensen is survived by his second wife, the former Hiltrud Herborg; a daughter, Karen C. Jensen; a sister, Margaret Brennan; two grandchildren; and three great-grandchildren.


Dr. Jensen’s wife was found to have breast cancer in 2005. She had the tumor removed, he said in an interview, but tested positive for the estrogen receptor and was successfully treated with a medication that prevents estrogen synthesis.


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YouTube Ban Lifted in Pakistan, for 3 Minutes





ISLAMABAD, Pakistan — A ban on YouTube, which Pakistan imposed after an anti-Islam video caused riots in much of the Muslim world, was lifted Saturday, only to be reinstated — after three minutes — when it was discovered that blasphemous material was still available on the site.




After months of criticism of the ban, the government decided to allow Pakistanis to have access to YouTube again, saying steps had been taken to ensure that offensive content would not be visible. But those efforts apparently failed, and the authorities quickly backtracked.


The ban was imposed on Sept. 17 following violent protests in response to the video, which was made in the United States and ridiculed the Prophet Muhammad. The government then ordered all telecommunications companies to block Internet material deemed offensive to Muslims and urged people to report such material.


But the ban on YouTube came to be seen as censorship, and a growing number of the estimated 25 million Internet users in the country complained.


“This is purely a naked power play by the government and one that we should resist,” an editorial in The Express Tribune, an English-language daily newspaper in Karachi, Pakistan, said Friday. “This is about controlling our behavior and denying us access to the Internet.”


“We need to make it clear that we do not wish to regress to a dark age when a centralized authority controlled all access to information,” the editorial, observing the 100th day of the ban, went on to say. “Retreating to such an era would essentially mean that we were longer living in a democracy.”


By Friday evening, Rehman Malik, the country’s interior minister, indicated that the ban would be lifted over the weekend. Mr. Malik said firewalls by government technicians were being installed to block pornographic and blasphemous material.


On Saturday, the Pakistan Telecommunication Authority directed local Internet service providers to make YouTube accessible. But by the afternoon, Geo, a private television news network that wields immense influence, reported that anti-Islam and blasphemous material was still available on YouTube. The criticism was led by Ansar Abbasi, a right-leaning journalist who often speaks out on morality and religion.


Yielding to the criticism, Prime Minister Raja Pervez Ashraf then ordered providers to again block access to the video-sharing site.


The flip-flop drew an immediate rebuke from users and led to a flurry of jokes on Twitter about the government’s dithering and backtracking.


“YouTube is a huge convenience for users, who benefit from it for educational as well as entertainment purposes,” Zubair Kasuri, the editor of Flare, a Karachi-based telecommunications magazine, said in a telephone interview. Mr. Kasuri expressed surprise over the government’s failure to install an effective firewall mechanism despite having months to do so.


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News Analysis: Weak Response of India Government in Rape Case Stokes Rage


Anupam Nath/Associated Press


Students in Guwahati, India, mourned the death of a rape victim on Saturday with a silent vigil; elsewhere, anger seethed.







NEW DELHI — India often seems to careen from crisis to crisis, with protests regularly spilling onto the streets over the latest outrage or scandal, a nation seemingly always on the boil. But when things settle, as they inevitably do, little seems to change. Public anger usually cools to a simmer.




Now, though, the heat has turned up again, as the death early on Saturday of a young woman savagely assaulted and raped here in the national capital has mushroomed into a new and volatile moment of crisis that has touched a deep chord of discontent. Protests that began more than a week ago as anguished cries against sexual violence in Indian society have broadened into angry condemnations of a government whose response has seemed tone deaf and, at times, incompetent.


On Saturday, hours after the rape victim died at a hospital in Singapore, several thousand people gathered at Jantar Mantar, the designated protest spot in the center of the capital, to express their anguish and rage. The latest demonstrations followed a week that saw the authorities clash with protesters and cordon off the political center of the city with a huge display of force.


“What the government is doing is politically stupid,” said Jayati Ghosh, a professor of economics at Jawaharlal Nehru University, speaking during a protest last week. “This will cause public disaffection, because people are seeing the government as inflexible and intolerant. If the government listened, they would find that people are trying to find solutions.


“The problem,” she added, “is the government is not even listening.”


For much of last week, as some protesters complained that the Indian state was more interested in protecting itself than its citizens, especially women, the symbolism has been stark: the authorities invoked emergency policing laws, closing off the governmental center of the capital, blockading roads and even shutting down subway stations — a democratic government temporarily encircling itself with a moat. At one point, fire hoses were turned on college students.


Those restrictions were eased by Dec. 25, even as New Delhi remained consumed by an anxious vigil as the young woman remained in critical condition. Doctors gave daily, televised updates on her condition until Wednesday evening, when the authorities unexpectedly flew her by special airplane to a hospital in Singapore, where her condition deteriorated before she died of organ failure.


It is the graphic horror of the attack that set off the outrage: the victim was a 23-year-old woman, her identity still withheld, whose evening at the movies with a male friend on Dec. 16 turned nightmarish. The police say a group of drunken men waved the pair onto a private bus, promising a ride home, but instead assaulted them with an iron rod and raped the woman as the bus moved through the city.


College students, mostly women, led the early protests. Sexual violence has become a national scandal in India, amid regular reports of gang rapes and other assaults against infants, teenagers and other women. But women also spoke of a more pervasive form of harassment: of being groped in public; of fearing to ride buses or subways alone; of victims, not attackers, being shamed and blamed.


“Rape happens everywhere,” Urvashi Butalia, a feminist writer, wrote in The Hindu, a national English-language newspaper. “It happens inside homes, in families, in neighborhoods, in police stations, in towns and cities, in villages, and its incidence increases, as is happening in India, as society goes through change, as women’s roles begin to change, as economies slow down and the slice of the pie becomes smaller.”


Analysts say that India’s coalition national government, led by the Indian National Congress Party, had an early opportunity to defuse the anger by embracing the protests and providing comfort and reassurance. Yet that moment, analysts agree, was missed, as top leaders misjudged how quickly public anger would escalate, especially among the young. It was a generational divide between young urbanites, often communicating by social media, and a government unable to find a way to win public trust.


Reassurances offered by Sonia Gandhi, president of the Congress Party, came off as unconvincing. Her son Rahul Gandhi, the party’s heir apparent, has barely been visible.


Niharika Mandhana and Sruthi Gottipati contributed reporting.



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Senate Leaders Set to Work on a Last-Minute Tax Agreement


Luke Sharrett for The New York Times


In a televised statement at the White House after meeting with Congressional leaders on Friday, President Obama said he was “modestly optimistic” that an agreement could be reached.







WASHINGTON — At the urging of President Obama, the Democratic and Republican leaders of the Senate set to work Friday night to assemble a last-minute tax deal that could pass both chambers of Congress and avert large tax increases and budget cuts next year, or at least stop the worst of the economic punch from landing beginning Jan. 1.




After weeks of fruitless negotiations between the president and Speaker John A. Boehner, Mr. Obama turned to Senator Harry Reid, the majority leader, and Senator Mitch McConnell of Kentucky, the Republican leader — two men who have been fighting for dominance of the Senate for years — to find a solution. The speaker, once seen as the linchpin for any agreement, essentially ceded final control to the Senate and said the House would act on whatever the Senate could produce.


“The hour for immediate action is here. It is now,” Mr. Obama said in the White House briefing room after an hourlong meeting with the two Senate leaders, Mr. Boehner and Representative Nancy Pelosi, the House Democratic leader. He added, “The American people are not going to have any patience for a politically self-inflicted wound to our economy, not right now.”


Senate Democrats want Mr. McConnell to propose an alternative to Mr. Obama’s final offer and present it to them in time for a compromise bill to reach the Senate floor on Monday and be sent to the House. Absent a bipartisan deal, Mr. Reid said Friday night that he would accede to the president’s request to put to a vote on Monday Mr. Obama’s plan to extend tax cuts for all income below $250,000 a year and to renew expiring unemployment compensation for as many as two million people, essentially daring Republicans to block it and allow taxes to rise for most Americans.


Bipartisan agreement still hinged on the Senate leaders finding an income level above which taxes will rise on Jan. 1, most likely higher than Mr. Obama’s level of $250,000. Quiet negotiations between Senate and White House officials were already drifting up toward around $400,000 before Friday’s White House meeting. The two sides were also apart on where to set taxes on inherited estates.


But senators broke from a long huddle on the Senate floor with Mr. McConnell on Friday night to say they were more optimistic that a deal was within reach. Mr. McConnell, White House aides and Mr. Reid were to continue talks on Saturday, aiming for a breakthrough as soon as Sunday.


“We’re working with the White House, and hopefully we’ll come up with something we can recommend to our respective caucuses,” said Mr. McConnell, who has played a central role in cutting similar bipartisan deals in the past.


The emerging path to a possible resolution, at least on Friday, appeared to mirror the end of the protracted stalemate over the payroll tax last year. In that conflict, House Republicans refused to go along with a short-term extension of the cut, but Mr. McConnell reached an agreement that permitted such a measure to get through the Senate, and the House speaker essentially forced members to accept it from afar, after they had left forChristmas recess.


This time, the consequences are more significant, with more than a half-trillion dollars in tax increases and across-the-board spending cuts just days from going into force, an event most economists warn would send the economy back into recession if not quickly mitigated. With the House set to return to the Capitol on Sunday night, Mr. Boehner has said he would place any Senate bill before his chamber and let the vote proceed and the chips fall. The House could also change the legislation and return it to the Senate.


If the Senate is able to produce a bill that is largely bipartisan, there is a strong belief among House Republicans that the same measure would easily pass the House, with a large number of Republicans. While Mr. Boehner was unable to muster enough votes for his alternative bill that would have protected tax cuts for income under $1 million, that was because the measure lacked Democratic support, and was roughly a few dozen votes shy of passage with Republicans alone.


Helene Cooper and Ron Nixon contributed reporting.



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Memphis Aims to Be a Friendlier Place for Cyclists


Lance Murphey for The New York Times


The Shelby Farms Greenline, which replaced a Memphis rail line.







MEMPHIS — John Jordan, a 64-year-old condo appraiser here, has been pedaling his cruiser bicycle around town nearly every day, tooling about at lunchtime or zipping to downtown appointments.




“It’s my cholesterol-lowering device,” said Mr. Jordan, clad in a leather vest and wearing a bright white beard. “The problem is, the city needs to educate motorists to not run over” the bicyclists.


Bike-friendly behavior has never come naturally to Memphis, which has long been among the country’s most perilous places for cyclists. In recent years, though, riders have taken to the streets like never before, spurred by a mayor who has worked to change the way residents think about commuting.


Mayor A. C. Wharton Jr., elected in 2009, assumed office a year after Bicycling magazine named Memphis one of the worst cities in America for cyclists, not the first time the city had received such a biking dishonor. But Mr. Wharton spied an opportunity.


In 2008, Memphis had a mile and a half of bike lanes. There are now about 50 miles of dedicated lanes, and about 160 miles when trails and shared roads are included. The bulk of the nearly $1 million investment came from stimulus money and other federal sources, and Shelby County, which includes Memphis, was recently awarded an additional $4.7 million for bike projects.


In June, federal officials awarded Memphis $15 million to turn part of the steel truss Harahan Bridge, which spans the Mississippi River, into a bike and pedestrian crossing. Scheduled to open in about two years, the $30 million project will link downtown Memphis with West Memphis, Ark.


“We need to make biking part of our DNA,” Mr. Wharton said. “I’m trying to build a city for the people who will be running it 5, 10, 15 years from now. And in a region known to some for rigid thinking, the receptivity has been remarkable.”


City planners are using bike lanes as an economic development tool, setting the stage for new stores and enhanced urban vibrancy, said Kyle Wagenschutz, the city’s bike-pedestrian coordinator, a position the mayor created.


“The cycling advocates have been vocal the past 10 years, but nothing ever happened,” Mr. Wagenschutz said. “It took a change of political will to catalyze the movement.”


Memphis, with a population of 650,000, is often cited among the unhealthiest, most crime-ridden and most auto-centric cities in the country. Investments in bicycling are being viewed here as a way to promote healthy habits, community bonds and greater environmental stewardship.


But as city leaders struggle with a sprawling landscape — Memphis covers about the same amount of land as Dallas, yet has half the population — their persistence has run up against another bedeviling factor: merchants and others who are disgruntled about the lanes.


A clash between merchants and bike advocates flared last year after the mayor announced new bike lanes on Madison Avenue, a commercial artery, that would remove two traffic lanes. Many merchants, like Eric Vernon, who runs the Bar-B-Q Shop, feared that removing car lanes would hurt businesses and cause parking confusion. Mr. Vernon said that sales had not fallen significantly since the bike lanes were installed, but that he thought merchants were left out of the process.


On McLean Boulevard, a narrow residential strip where roadside parking was replaced by bike paths, homeowners cried foul. The city reached a compromise with residents in which parking was outlawed during the day but permitted at night, when fewer cyclists were out. Mr. Wagenschutz called the nocturnal arrangement a “Cinderella lane.”


Some residents, however, were not mollified. “I’m not against bike lanes, but we’re isolated because there’s no place to park,” said Carey Potter, 53, a longtime resident who started a petition to reinstate full-time parking.


The changes have been panned by some members of the City Council. Councilman Jim Strickland went as far as to say that the bike signs that dot the streets add “to the blight of our city.”


Tensions aside, the mayor’s office says that the potential economic ripple effect of bike lanes is proof that they are a sound investment.


A study in 2011 by the University of Massachusetts found that building bike lanes created more jobs — about 11 per $1 million spent — than any other type of road project. Several bike shops here have expanded to accommodate new cyclists, including Midtown Bike Company, which recently moved to a location three times the size of its former one. “The new lanes have been great for business,” said the manager, Daniel Duckworth.


Wanda Rushing, a professor at the University of Memphis and an expert on urban change in the South, said bike improvements were of a piece with a development model sweeping the region: bolstering transportation infrastructure and population density in the inner city.


“Memphis is not alone in acknowledging that sprawl is not sustainable,” Dr. Rushing said. “Economic necessity is a pretty good melding substance.”


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Despite Vows For Safety, Walmart Seen as Obstacle to Change


Abir Abdullah/European Pressphoto Agency


Several of Walmart's suppliers had used the factory in Bangladesh where 112 workers died last month. More Photos »







When Walmart’s chief executive, Michael Duke, appeared at a Council on Foreign Relations meeting in New York this month, a raucous crowd of protesters awaited him. Walmart was confronting reports of bribery in Mexico, a wave of labor demonstrations in the United States and, perhaps most critically, questions about a grisly fire that had killed 112 workers at a Bangladeshi garment factory used by several Walmart suppliers.




“We will not buy from an unsafe factory,” Mr. Duke told the audience. “If a factory is not going to operate with high standards, then we would not purchase from that factory.”


But Mr. Duke’s reassurances that Walmart enforces high standards in the global clothing industry appear to be contradicted by inspection reports it requested and some of Walmart’s own internal communications:


¶ Just two weeks before Mr. Duke’s vow, a top Walmart executive acknowledged in an e-mail to a group of retailers that the industry’s safety monitoring system was seriously flawed. “Fire and electrical safety aspects are not currently adequately covered in ethical sourcing audits,” Rajan Kamalanathan, the executive, wrote to other board members of the Global Social Compliance Program, a business-led group focused on improving the supply chain.


¶ Three inspection reports from 2011 and 2012 at the Tazreen Fashions factory where the fire occurred revealed serious repeated violations, including a lack of fire alarms in many areas, a shortage of fire extinguishers and obstacles blocking workers’ escape routes. At the same time, those inspections did not even cover whether the factory had fire-safe emergency exits, leaving that responsibility to often lax government inspectors.


¶ Walmart led an effort to block a plan to have global retailers underwrite safety improvements at factories in Bangladesh, according to minutes of an April 2011 meeting as well as several participants.


Walmart has become the world’s largest retailer by demanding the lowest costs from suppliers and delivering the lowest prices to consumers — while promising its customers that the billions of dollars of goods it buys from Bangladesh, China and other countries are produced in safe, nonsweatshop factories. Walmart buys more than $1 billion in garments from Bangladesh each year, attracted by the country’s $37-a-month minimum wage, the lowest in the world.


But even as the deadly Nov. 24 fire at the Tazreen factory has stirred soul-searching inside and outside the apparel industry about the effectiveness of its global factory monitoring system, some nonprofit groups say Walmart has been an important obstacle to efforts to upgrade fire safety. That is partly because it has shown little interest in changing the existing practice of demanding that the factories, often operating at razor-thin margins, meet fire safety standards at their own cost.


“They are squeezing the manufacturers, and the manufacturers are happy to get away with the minimum compliance that they can,” said Farooq Sobhan, a former Bangladeshi diplomat involved in past negotiations between Bangladesh and the United States on trade policy for apparel. “It is kind of a vicious cycle.”


Walmart says it is doing everything it can to prevent factory fires. “Walmart has been advocating for improved fire safety with the Bangladeshi government, with industry groups and with suppliers,” Kevin Gardner, a Walmart spokesman, said in an e-mail. “We firmly believe factory owners must meet our supplier standards, and we recognize the cost of meeting those standards will be part of the cost of the goods we buy. We know our customers expect this of us and our suppliers.”


Walmart also insists that several of its apparel suppliers were using the Tazreen factory without its approval. Two days after the Tazreen fire, Walmart said it had “de-authorized” use of the factory, but without saying when or why; two weeks later it said it had taken the action “many months ago.”


But critics say that the inspection reports discovered in the Tazreen factory— which were obtained by The New York Times from a labor advocacy group — underscore fundamental problems with Walmart’s supply chain in Bangladesh, allowing it to avoid addressing safety problems it should have dealt with.


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Wind Farm Developers Race Against End of Tax Credit





WASHINGTON — Forget about parties, resolutions or watching the ball drop. To Iberdrola Renewables, New Year’s Eve will mean checking on last-minute details like the data connections between 169 new wind turbines in New Hampshire, Massachusetts and California and its control center in Portland, Ore.




All over the country, developers are in a sprint to get new wind farms up and running before Tuesday, when the federal wind production tax credit will disappear like Cinderella’s ball gown. After that, the nation’s wind-farm building will be at a virtual standstill.


The stakes of meeting the deadline are enormous. Wind turbines that are connected to the grid and in commercial service before midnight on New Year’s Eve are entitled to a 2.2 cent tax credit for each kilowatt-hour they generate in their first 10 years, which comes out to about $1 million for a big turbine. As it stands now, those that enter service on Jan. 1 or later are out of luck.


The deadline is a bit like the April 15 one for filing income taxes, but “there are no extensions here,” said Paul Copleman, a spokesman for Iberdrola. To reduce the risk of missing it — a risk that increases when managing construction projects on mountaintops in New England in the winter — the company allowed more than a year for what are normally nine-month construction projects.


More than just individual projects are at risk; the wind industry says it expects installations to decline by 90 percent next year, with the loss of thousands of jobs. The erratic pattern of wind subsidies has spawned a boom-and-bust cycle, with supplier companies building factories that run at full production for months and then shut down when demand collapses.


The industry has long experience with drop-dead deadlines: since the tax credit began in the early 1990s, it has expired three times, said Elizabeth A. Salerno, director of industry data and analysis at the American Wind Energy Association, a trade group based in Washington. Each time, new installations fell from 73 percent to 93 percent, according to the association.


Congress, which last renewed the credit as part of the 2009 fiscal stimulus package, balked at an extension this year. Opponents argue that the money spent so far, about $14.7 billion, is enough, and that a renewal could cost about $12.2 billion were it to last for 10 years. They also complain that the credit allows wind machines to be profitable even when there is a surplus of electricity and the market price for it falls to zero.


The tax credit could be equal to one-sixth to one-half of the revenue from the wind turbine, depending on electricity prices in the area of the generator.


Wind advocates say that the wind production tax credit did not cost the taxpayers any money, because it stimulated economic activity, in the form of manufacturing and construction, that was taxed at the federal, state and local levels.


Iberdrola’s wind farm near Rosamond, Calif., with 126 turbines, opened last week. The company said it was “extremely optimistic” that its 19-turbine farm in Monroe and Florida, Mass., and a 24-turbine farm in Groton, N.H., would be up and running by Monday night, but declined to say precisely when.


 According to the Energy Information Administration, the statistical arm of the Energy Department, wind developers were planning to install 12,000 megawatts of wind capacity this year, but as of Nov. 30, only about 6,000 megawatts had been completed.


The remaining 6,000 megawatts works out to more than 3,000 turbines: if they are all operating by late Monday night, the wind industry will have added 12 percent to its capacity in a single month. (A megawatt is the power required by, say, everything in a full-size Walmart with an included supermarket. Over the course of a year, however, a turbine produces only about one-third of its theoretical maximum capacity.)  


Iberdrola did not disclose the price of each wind farm, but the industry average is about $2 million per megawatt, meaning that the three projects may have cost a total of more than $500 million.


Wind advocates say they will seek to revive the tax credit when a new Congress convenes next month, but it will not be at the top of Congress’s agenda.


With the tax credit due to expire, few developers are now taking the early steps required to establish a wind farm, like negotiating deals to sell the power and ordering the equipment. Mr. Copleman, the Iberdrola spokesman, said his company had a variety of projects “at various stages” but was “unlikely to be pouring any concrete next year.”


For projects being wrapped up now, Ms. Salerno said, developers lined up power purchase agreements with utilities and then arranged financing a year and a half to two years ago, with the economics predicated on the tax credit.


The start-and-stop pattern of recent years has repeatedly affected companies up and down the chain, especially the highly specialized ones that make towers, blades and generators. Robert Thresher, a wind expert at the National Renewable Energy Laboratory, in Golden, Colo., said manufacturers were “trying to run down their inventory so they wouldn’t be caught holding turbines” after the market collapsed in January.


A study commissioned by the wind industry predicts the loss of 37,000 jobs as a result of the credit’s expiration. For example, the Spanish company Gamesa, which built the giant blades for the New Hampshire project at its factory in Ebensburg, Pa., has announced the layoffs of more than 150 workers.


Some members of Congress have proposed that the credit be renewed, perhaps with a phaseout over a few years. A one-year extension would be of little use: Ms. Salerno said it would not give developers enough time to get new projects financed, built and put on the grid before the expiration date, even if they had already completed environmental studies and obtained the various permits required.


A one-year extension would work for developers, she said, but only “if you knew 24 months ahead of time that this was going to happen.”


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Recipes for Health: Spinach, Sardine and Rice Gratin


Andrew Scrivani for The New York Times


Spinach, sardine and rice gratin.







Sometimes a can of sardines comes in very handy and this dish is a great way to work more high-omega 3 fish into your diet. It is a classic Provençal gratin, traditionally made with fresh sardines but just as good made with the skinless, boneless olive-oil packed sardines I buy at Trader Joe’s. You are getting lots of calcium, Omega-3 fatty acids and iron from both the sardines and the spinach.




 


2 3.75-ounce cans boneless, skinless and boneless sardines packed in olive oil


2 pounds spinach (2 generous bunches), stemmed and washed in two changes of water or 1 pound baby spinach


1 tablespoon extra virgin olive oil


Salt and freshly ground pepper to taste


1 medium onion, finely chopped


2 to 4 garlic cloves, minced


1 teaspoon fresh thyme leaves, roughly chopped, or 1/2 teaspoon dried thyme


1 teaspoon all-purpose flour


1/2 cup low-fat milk


1 cup cooked rice (brown or white; I like to use Arborio)


1/4 cup fresh or dry bread crumbs


 


1. Preheat the oven to 425 degrees. Oil a 1 1/2 to 2-quart gratin or baking dish. Remove the sardines from the oil and separate them into fillets. Set the oil aside.


2. Wilt the spinach either by steaming or blanching. To blanch bring a large pot of water to a boil, salt generously and add the spinach. Blanch for no more than 20 seconds (do this in batches). Transfer to a bowl of cold water, drain and squeeze out excess water. If you prefer, you can wilt the spinach by steaming for about 1 minute over an inch of boiling water. Chop medium-fine.


3. Heat the olive oil (not the oil from the sardines) in the skillet over medium heat and add the onion and a pinch of salt. Cook, stirring, until tender, 5 to 8 minutes. Add a generous pinch of salt, stir in the garlic and thyme and cook, stirring, until fragrant, 30 seconds to a minute, then add the chopped wilted spinach, flour, and salt and pepper to taste. Stir together for 1 minute, until everything is blended. Add the milk and cooked rice and stir together for about 1 minute, until you no longer see liquid in the pan. Remove from the heat. Taste and adjust salt and pepper.


4. Spread half the rice and spinach in the bottom of the baking dish. Top with the sardine fillets in one layer. Drizzle a tablespoon of the oil from the cans over the sardines, then top with the remaining rice and spinach in an even layer. Sprinkle on the breadcrumbs and drizzle on another tablespoon of the oil from the sardine cans. Place in the oven and bake 15 minutes, until sizzling. Serve hot or warm.


 


Yield: Serves 4


Advance preparation: You can assemble this up to a day ahead of baking. Do not top with the breadcrumbs and oil until just before baking. Keep well covered in the refrigerator. Leftovers will keep for a few days in the refrigerator. Reheat in a moderate oven.


Nutritional information per serving: 265 calories; 11 grams fat; 2 grams saturated fat; 1 gram polyunsaturated fat; 3 grams monounsaturated fat; 10 milligrams cholesterol; 22 grams carbohydrates; 4 grams dietary fiber; 271 milligrams sodium (does not include salt to taste); 20 grams protein


 


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


 


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