UK unveils plan to double its funding to rebuild the Congo's road network

The UK will double its funding for a road-building in the Democratic Republic of Congo to improve access to some of the world's most remote regions, UK Minister for Trade and Development Gareth Thomas announced today while on a visit.

The DRC has one of the least developed roads networks in the world - 95% of the DRC's 152,400 km of roads are effectively just paths, making it difficult to get food, medicine and trade routes open. Only one out of ten of the provincial capitals are easily accessible by road.

This severely hampers development prospects and has been cited as a reason the country is so poor. Of the 60 million citizens, around 45 million live on less than 50p a day. One in seven children die before their fifth birthday, and every day nearly 100 Congolese mothers die in childbirth.

During his visit to the country, Africa Minister Gareth Thomas announced the Department for International Development would double its funding for road building programmes from £38 million to £76 million.

The road building programme will bring together the Department for International Development (DFID), the Government of the DRC, the World Bank and other donors to build, and maintain, the country's roads. This is key to helping to promote trade and investment, as well as security.

The 'Pro-Routes' roads programme will:

* Support the DRC Government to open and maintain between 2,500 km and 3,000 km of priority roads;

* Provide better access to social services and markets;

* Help the Government of the DRC to run its own road-building and maintenance programme, and also help it to establish a 'second generation road fund', through tax on petrol and diesel sales;

* Boost the ability of private sector businesses to carry out road maintenance; and

* Develop a forward-thinking road sector strategy which will ensure the continuation of the roads programme, and also set up a wide-ranging environmental and social strategy which will ensure the natural forest of the DRC, and the population, is protected.

Gareth Thomas said: "With an area the size of western Europe, it only has 2,000 km of paved roads, compared with 398,000 km in the UK.

"By doubling the amount of UKaid for the DRC's road building project , ordinary citizens and businesses will get better access not only to medical care and schools, and also to export markets, which will help lift the country out of poverty.

"With the global economic crisis hitting developing countries like the DRC hardest, and 45 million people living on less than 50 pence a day, new roads will bring much-needed new development opportunities for the people of DRC, and help them live in peace and stability."

Studies have shown that in areas where there are no roads, bandits and rebels often commit crimes and then disappear into heavily forested areas to escape justice. Roads allow soldiers and police better access to keep law and order.

Better roads mean small-scale farmers can get their produce to market before it rots or spoils, and also brings down prices in the area by increasing competition from traders, thereby helping the local population.

Problems in getting medical supplies and aid to more remote regions because of poor transport links, leads to more women dying in childbirth, and children dying from preventable diseases.

The DRC is heavily reliant on imports, even on items which it grows or supplies from within its own borders, because exports can be brought in more cheaply.

(DFID) Food for thought: putting more ethical products from Africa on our shelves

New African products will appear on supermarket shelves thanks to a new fund formally launched today by Trade and Development Minister, Gareth Thomas.

The FRICH (Food Retail Industry Challenge fund) will support six projects to bring a range of new tea, coffees and fruit juices from across Africa to the UK, with a total investment of around £3 million. Projects are co funded by FRICH and the companies implementing them.

The six companies chosen to receive funding so far are:

* Blue Skies (fruit juice from Ghana)
* Waitrose LEAF (environmentally-sustainable fruit and vegetables)
* The Co-Operative Group (tea from Kenya)
* Sainsbury's (coffees from Rwanda and Democratic Republic of Congo)
* Betty's and Taylors of Harrogate (tea from Rwanda)
* Cafedirect (hot drinks from Sao Tome and Tanzania)

Research shows nearly three-quarters of consumers in the UK want to reduce poverty through their shopping choices. However, statistics show that we still spend only 3 percent of our food shopping budget on products from developing countries. The new funding will help bridge this gap and ensure that everyone involved gets a fair deal.

The launch of the first six FRICH projects takes place during the first ever World Trade Week in the UK (8th-14th June), an event to highlight the importance of trade as a tool for recovery from the global economic downturn.

Speaking at the launch of FRICH today, Minister for Trade and Development Gareth Thomas said:

"Seven out of ten Africans depend on agriculture for their livelihoods, and the ability to trade with a large UK retailer will make a big difference to farmers across the continent.

"I am delighted to see that all of the retailers chosen to receive FRICH funding are putting the money to good use, producing an exciting new range of African products which will enable UK consumers to help developing countries with their shopping even more.

"This week is the first ever World Trade Week in the UK, and the work that these companies are doing is a perfect example of how trade can offer a vital route out of poverty to some of the world's poorest people."

(DFID) Changing the image of UK fashion: Government launches fund to make fashion industry more ethical

A pioneering initiative to help clothing manufacturers improve working conditions for their producers in developing countries was today launched by Minister for Trade and Development Gareth Thomas.

The RAGS (Responsible and Accountable Garment Sector) fund will make £3.5 million available over three years for bids from companies who want to make their clothing business more ethical and contribute more strongly to development in poor countries.

A Challenge Fund will be set up that invites bids for work that will make a real difference - which might include companies working with unions and others to explore responsible business practices, projects to raise workers' awareness of their rights, and ways of generating more viable and decent jobs in garment making in poorer areas.

The fund will support and encourage "ethical pioneers" in the fashion industry - people and companies who have innovative ideas with the potential to drive change in the garment sector.

Gareth Thomas launched RAGS with a group of models wearing ethical fashion items as part of the first ever World Trade Week UK; an event to highlight the importance of trade as a tool for recovery from the global economic downturn.

Speaking at the launch today, Trade and Development Minister Gareth Thomas said:
"RAGS is a fun name but it carries a serious message. The garment sector has for too long been associated with abuse and exploitation of workers in developing countries.

"I am therefore pleased to be able to launch this new initiative, which will help to make a real difference to how retailers in this country work with producers in developing countries. The benefits of the garment sector for development are huge - particularly for women - and it's important that we encourage producers here to take more action to make a positive impact.

"Responsible, ethical production should be the norm in the fashion industry, not the exception, and RAGS will help to change the image of the fashion sector."

RAGS is the first initiative of its kind from the Department for International Development (DFID) and will help to improve the lives of people working in the garment sector, which employs some 20 million people worldwide.

The UK garment industry is heavily dependent on products from developing countries - only 10 % of UK clothing is manufactured here - but the sector comes under a lot of criticism for worker abuses such as unfair pay and forced labour. RAGS responds to calls for action for an end to such practices in the sector.

(OFT) Trading standards action saves consumers £347 million a year - new figures

Action by local authority Trading Standards Services (TSS) to protect the public from unfair trading practices saves UK consumers at least £347 million a year, the OFT revealed today.

In a new study OFT found that, on average, for every £1 that TSS spend on this work, they deliver direct consumer savings of at least £6.

The overall figure of £347million includes:

* an estimated saving of at least £228m a year delivered by TSS through tackling unfair trading practices. This includes actions against traders providing goods and services without reasonable care and skill, misleading claims and omissions, aggressive and coercive selling or unfair contract terms.

* an estimated saving of at least £119million a year delivered by TSS advice and assistance to consumers.

The groundbreaking research is the first time the financial impact of this work, carried out by nearly 200 TSS across the UK, has been evaluated. The OFT is also encouraging individual TSS to use the same methodologies to estimate consumer savings they deliver locally.

OFT Chairman Philip Collins said:

'The current economic climate means that work by local authority Trading Standards Services to promote and maintain fair trading in their communities and across the UK is more important than ever.

These findings demonstrate the very substantial contribution that Trading Standards Services make to the economic prosperity of the UK by protecting consumers and preventing them losing hundreds of millions of pounds each year.'

Consumer Minister Gareth Thomas said:

'The impressive work of Trading Standards Services translates into nearly £350million of savings each year for consumers. Trading Standards is working hard to stop rogue traders ripping people off whilst ensuring that businesses can still compete effectively.'

Councillor Geoffrey Theobald OBE, the Local Authorities Coordinators of Regulatory Services (LACORS) Chairman said:

'This report from the OFT shows how valuable council trading standards services are to local people and they really do save them and businesses a lot of money. It shows that in levelling the playing field for all, council trading standards officers are keeping an extra £347 million in people's pockets and confirms they are doing everything possible to protect consumers and ensure that businesses can compete fairly.'

(BERR) Budget delivers real help for personal finances

Savers, pensioners, homeowners and people struggling with debt are to benefit from Budget measures to help people take control of their finances.

The Government is delivering a range of measures to provide real help to tackle the pressures people are facing as a result of the global economic downturn.

Welcoming the Budget boost to personal finances, Consumer Affairs Minister Gareth Thomas said:

"We understand that money is tight for a lot of people at this time. This Budget will help put money back in people's pockets, help them to take control of their finances and, for those in difficulty, get back on their feet again.

"We are helping people to get their foot on the property ladder and meet their mortgage payments, helping pensioners and people who rely on savings income, and putting real help in place for people struggling with debts and on low incomes."

Minister for Pensions and the Ageing Society Rt Hon Rosie Winterton MP said:

"It is important that we continue to support the poorest pensioners through the economic downturn. The changes we have made to Pension Credit will benefit half a million pensioners by ensuring that any savings up to £10,000 will not affect their benefit entitlement."

Ian Pearson MP, Economic Secretary to the Treasury said:

"The Government wants to help all savers get the best possible income from their savings by shopping around to secure the best interest rate.

"To help with this the Financial Services Authority's Money Made Clear service offers comparative tables of savings accounts and has recently introduced a telephone helpline where people can get free and impartial guidance on all aspects of personal finance."

Measures include:

* Tax-free ISAs - on the tenth anniversary of their introduction, the annual tax-free savings limit will be increased from £7,200 to £10,200 for over-50s this year, including half in cash, and available to other savers from next year.

* In response to the potential impact of falling interest rates on pensioners with savings the capital threshold in Pension Credit will be increased from £6,000 to £10,000. The £10,000 limit will also be implemented for pensioners entitled to Housing and Council Tax Benefit.

* Social Fund - an additional £260million in total over two years to meet demand for interest free loans for people in times of financial difficulty, available through Jobcentre Plus.

* Growth Fund - a further £18.75m to help people on low incomes obtain affordable credit and banking services through credit unions and other community-based institutions. This will help to prevent people sinking into a spiral of debt and being driven into the hands of loan sharks.

* Car scrappage - the scheme will be introduced next month enabling people to get £2,000 towards a new, less polluting car or van under 3.5 tonnes.

* White Paper on consumer rights - this will set out proposals to:

* provide further help to people in difficulty with their finances;

* strengthen the UK's credit regime; promote responsible lending and borrowing;

* raise standards in debt collection;

* and set a longer-term direction for the sector and its regulation that will deliver continuing access to affordable credit, enhanced consumer protection and financial stability.

* State pensions - the increase in Winter Fuel Payments announced in Budget 2008 will continue next year so that households with someone over 60 will receive £250 and over-80s households £400 in winter 2009-10. The State Pension is guaranteed to increase by at least 2.5 per cent next year.

* Mortgage Rescue Scheme - the scheme, which helps vulnerable households facing repossession, will be expanded from May 1 to also cover those in negative equity as a result of a fall in house prices.

* Repossessions' Prevention Fund - a new fund which will provide small loans to homeowners or tenants facing repossession, administered by Local Authorities.

* Stamp Duty - the holiday on stamp duty on purchases of properties under £175,000 to help first-time buyers is to be extended to the end of the year.

* £400 million to unblock stalled private sector house building. The new funding will help restart stalled construction sites by creating new partnerships with the private sector. This will help to deliver 9,000 additional homes, all of which will start on site in 2009-10. This will include up to 5,000 homes to help first time buyers, including the option to rent now and buy later, and up to 1,000 social rented homes.

The housing measures follow this week's announcement of support for homeowners to stay in their home through the Homeowners Mortgage Support (HMS) initiative. HMS will enable eligible borrowers who suffer a temporary loss of income to cut their mortgage interest payments for up to two years to help them get back on track with their finances.

BERR launches consultation on European Consumer Credit Directive

The Government today launched a consultation on the European Consumer Credit Directive.

The Directive aims to protect consumers, offer them new rights and set out common standards across the EU in relation to a range of unsecured credit products.

The provisions to be consulted on include:

* A 14-day right for consumers to cancel any credit agreement without penalty.
* A standardised information form setting out important information for consumers before they sign a credit agreement.
* Lenders will have to explain their products to help consumers make the right choices.
* Lenders will have a responsibility to check consumer's creditworthiness.
* A consumer right to make partial early repayment (this is in addition to the existing right to repay early in full).

Consumer Minister, Gareth Thomas, said: "We want to further promote responsible lending and responsible borrowing. These measures will help with that objective.

"It's important we hear the views of consumer groups and the credit industry to ensure that we improve consumer protection whilst taking into account the practical concerns of business."

The consultation will close on 10 June 2009. To contribute, visit: http://www.berr.gov.uk

(Ministry of Justice) Straw: New laws to aid global fight against bribery

New laws to help the UK fight bribery have today been proposed by Justice Secretary Jack Straw.

The draft Bribery Bill intends to transform the criminal law on bribery, modernising and simplifying existing legislation to allow prosecutors and the courts to deal with bribery more effectively.

It will also promote and support ethical practice by encouraging businesses to put in place anti-bribery safeguards that ensure all employees are aware of the risks surrounding bribery and that adequate systems exist to manage these.

Justice Secretary Jack Straw said:

"Bribery blights free and fair competition and adds to the cost of doing business. It has no place in British business.

"Modernisation of the law is a priority to deal with those who offer or accept bribes, and to reinforce transparency and accountability in international business. That is why we are committed to the foundation of a new and consolidated criminal law of bribery. This Bill will better help the police, prosecutors and courts to tackle bribery wherever it occurs."

The proposed Bill will:

* Make it a criminal offence to give, promise or offer a bribe and to request, agree to receive or accept a bribe either at home or abroad. The measures cover bribery of a foreign public official.

* Increase the maximum penalty for bribery from seven to 10 years' imprisonment, with an unlimited fine.

* Introduce a corporate offence of negligent failure to prevent bribery by persons working on behalf of a business. A business can avoid conviction if it can show that it generally has good systems in place to prevent bribery.

* Ensure evidence from proceedings in Parliament can be considered by the Courts in bribery cases by removing Parliamentary Privilege in the prosecution of an MP or Peer.

The draft Bill distinguishes between bribery and legitimate business exchanges by setting out the circumstances in which a criminal offence has been committed.

Trade Minister Gareth Thomas said:

"There is no excuse for bribery - it cheats consumers and honest businesses alike. These proposals will make sure that anyone who resorts to it faces the full force of the law.

"British businesses must meet the highest ethical standards in all their activities, both in the UK and around the world."

Serious Fraud Office Director Richard Alderman said:

"This is an excellent step forward in providing a modern legislative framework to tackle alleged bribery offending."

Detective Chief Superintendent in the Economic Crime Department at the City of London Police, Steve Head, said:

"Whilst successfully employing existing legislation against UK and overseas individuals, we welcome the introduction of the Draft Bribery Bill to further assist us in our fight against corporately corrupt companies operating in the UK and abroad.

"Had we been able to employ this proposed bribery legislation earlier, our effectiveness in seeking out the full extent of corporate criminal liability might well have proved greater."

On his role as the Government's Anti-Corruption Champion, Jack Straw, commented:

"The Government has undertaken a concerted programme of action over the last two years to co-ordinate and to improve our anti-corruption systems through annual anti-corruption action plans. I will drive forward work to develop a comprehensive UK strategy for tackling foreign bribery, which includes the draft Bribery Bill. This will strengthen our work with international partners, establishing a clear legal, regulatory and policy framework."