27/02/2013 BBC News at Ten


27/02/2013

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Profits at British Gas up 11% anger customers and MPs.

:00:08.:00:12.

The company says cold weather meant families used more gas, but it is

:00:12.:00:19.

criticised for putting its prices The prices are going up and up and

:00:19.:00:24.

up which I don't understand because British Gas made a profit. So why

:00:24.:00:27.

haven't they put the prices down? We'll be assessing whether British

:00:27.:00:31.

Gas is getting the balance right between prices and profits.

:00:31.:00:38.

Also tonight: The Pope bids a final farewell and

:00:38.:00:42.

speaks of the difficulties of the last few years.

:00:42.:00:45.

For the first time Nick Clegg admits that some of the concerns

:00:45.:00:48.

about Lord Rennard were known when he resigned as party chief

:00:48.:00:53.

executive. The best friend of Reeva Steenkamp,

:00:53.:01:00.

shot dead by Oscar Pistorius, talks about her final hours. Haven't you

:01:00.:01:06.

run before? Well, yes!

:01:06.:01:16.

The interview who left Mo Farah In Sportsday on the BBC News

:01:16.:01:18.

Channel: Former England captain, Michael Vaughan, says cricket

:01:18.:01:21.

should be wary of player behaviour between seasons. It is after the

:01:21.:01:31.
:01:31.:01:39.

Good evening. The UK's biggest energy supplier,

:01:39.:01:42.

British Gas, and its parent company Centrica have been defending a big

:01:42.:01:46.

jump in profits. While many customers are struggling to pay

:01:46.:01:49.

their bills, British Gas profits rose by 11% or �606 million after

:01:49.:01:56.

raising its prices. Under attack from consumer groups, the company

:01:56.:02:00.

claims its profits per household have fallen. David Cameron

:02:00.:02:03.

reiterated today his plan to push ahead with plans to force companies

:02:03.:02:07.

to put their customers on the cheapest tariffs. Here's our

:02:07.:02:14.

industry correspondent, John Moylan. In 2012 temperatures fell. Bad news

:02:14.:02:19.

for households which used more gas, but good news for the UK's biggest

:02:19.:02:25.

energy supplier. Profits at British Gas jumped to �606 million. That's

:02:25.:02:30.

up 11% on the previous year, it amounts to around �49 profit her

:02:30.:02:36.

household. We put our prices up and our profits are uppm. The company

:02:36.:02:39.

was unrepentant. If we are going to continue to keep

:02:39.:02:43.

the lights on, to keep secure supplies of gas coming to the UK,

:02:43.:02:47.

we have entered into �50 billion worth of commitments for gas for

:02:47.:02:51.

our UK suppliers. You cannot do that unless you remain a successful

:02:51.:02:55.

company. All the major suppliers hiked up

:02:55.:02:59.

tariffs last year making life tougher for customers. Back in

:02:59.:03:04.

October, British Gas announced that it was increasing prices by about

:03:04.:03:12.

6% for both gas and electricity. Now that that added around �80 to a

:03:12.:03:17.

typical dual fuel bill which jumped to over �1,300 a year for a

:03:17.:03:22.

household. Some like Karen O'Brien from

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Gosport pay even more, around �30 a week for gas alone. If I put the

:03:28.:03:32.

gas cook er on, I switch the heating off and vice versa. We

:03:32.:03:36.

don't have it on at night when we are asleep. It is not a huge house.

:03:36.:03:40.

There is no a lot to heat, but British Gas have raised the prices

:03:40.:03:46.

as well which we have noticed so it is costing us more money.

:03:46.:03:50.

Higher tariffs also meant energy was high on the political agenda

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today at Prime Minister's Questions. What is he going to do now to keep

:03:54.:03:59.

his promise to those families who are struggling to heat their homes?

:03:59.:04:02.

We are legislating to make sure that energy companies put people on

:04:02.:04:07.

to the lowest tariffs. When that bill comes in front of the House of

:04:07.:04:11.

Commons I hope she will vote for it. British Gas accounts for part of

:04:11.:04:16.

the profits at its parent company, Centrica. Overall, it made made

:04:17.:04:20.

�2.7 billion last year, much of that from producing oil and gas.

:04:20.:04:26.

But while bills were rising, it also paid out �850 million to

:04:27.:04:31.

shareholders. So is that too much? They are around the average mark.

:04:31.:04:35.

They are on the higher end, but when you look across all the

:04:35.:04:38.

companies in the FTSE 100, they are not paying out excessive sums of

:04:38.:04:41.

money in comparison with their peers.

:04:41.:04:47.

2013 has started cold. That could send profits higher again. But

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Centrica insists that it contributes to the economy and

:04:50.:04:55.

employs 40,000 people in the UK and paying around �800 million a year

:04:55.:05:00.

in tax too. John is here now. John some support

:05:00.:05:04.

and criticism of British Gas there. Has British Gas got the balance

:05:04.:05:07.

right between prices and profits? Well, it is a question we heard a

:05:07.:05:11.

lot today. We heard a lot today from consumer groups about the

:05:11.:05:14.

concept of fairness where the profits fair? It is worth

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remembering that British Gas and Centrica, they are not charities.

:05:18.:05:22.

They are there to make money. They make a bit of money and part of the

:05:22.:05:26.

problem today was these were strong strong profits at British Gas, up

:05:26.:05:30.

11% on the back of the price rises they saw last year and in a year,

:05:30.:05:33.

when British Gas saw its customer numbers fall overall. They didn't

:05:33.:05:39.

go up, they fell. That led some to ask the question - is British Gas

:05:39.:05:43.

recession-proof? Can it make money whatever is going on out in the

:05:43.:05:46.

economy? And is it getting as you say, the balance right? Consumer

:05:46.:05:51.

groups are asking is the balance between profits and the payouts to

:05:51.:05:53.

shareholders and also what is happening to our bills and higher

:05:53.:05:58.

prices, is that balance right? On bills, today we heard the debate go

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on, the political debate is raging about the best way to keep the

:06:02.:06:08.

bills down. A warning today from Centrica saying as it looks ahead,

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it thinks the only direction for bills is upwards.

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Thank you very much. Pope Benedict has bid his followers

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an emotional public farewell and spoke openly about the difficulties

:06:17.:06:21.

of his papacy. Addressing an estimated 150,000 people in St

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Peter's Square in Rome, some carrying banners reading, "Benedict,

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change your mind", the Pope said that at times during his eight

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years in the Vatican, there had been choppy waters. Benedict will

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formally relinquish his role tomorrow evening becoming the first

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Pope for 600 years to step down. From Rome, our special

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correspondent, Allan Little reports. Pope Benedict has never seemed

:06:49.:06:54.

comfortable in front of crowds. Even a crowd as adoring as this one.

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The Vatican said they expected 50,000. It was four or five times

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that. It is like - it means the world to me. I grew up Catholic so

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it's just huge. To deepen our understanding of this great event,

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you know, that is taking shape in our church. This is the main reason

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why I'm here today. It was a long and physically

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demanding event for a man hose frailty is -- whose frailty is

:07:26.:07:34.

evident. Hes message was emotion -- his message was emotional and he

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referred the controversies. He said the church faced stormy weather. It

:07:38.:07:45.

had seemed at times that the Lord was sleeping.

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When he was elected Pope eight years ago, he said, he surrendered

:07:51.:07:55.

his life to a a private life and there could be no going back. He

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said, "I am not abandoning the cross."

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I ask each of you to pray for me and for the new Pope.

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This is the last time the public will see this Pope. Soon for the

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sake of the credibility and authority of the next Pope, ben

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Benedict will be hidden from the world for the rest of his life.

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There will soon be two Pope in the Vatican. Benedict XVI will hold the

:08:30.:08:37.

title Pope Emeratius, could he become a focus for descent in a

:08:37.:08:42.

church hierarchy that is plagued by ifighting?

:08:42.:08:46.

The new Pope will inherit a church that is shrinking in its

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traditional European European heartlands and growing in the the

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developing Worle, but -- world, but remains dominated by European

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cardinals at the top. He will inherit a church reeling from sex

:08:59.:09:02.

and child abuse scandals in the priesthood.

:09:02.:09:07.

Pope Benedict retreats from public view, buoyed today by the affection

:09:07.:09:11.

of the faithful, but leaving a church that is still in crisis and

:09:11.:09:20.

still by his own admission bitterly divided.

:09:20.:09:22.

The Liberal Democrat leader, Nick Clegg, has been giving a new

:09:23.:09:26.

account of the sexual harassment crisis that's hit the party. For

:09:26.:09:29.

the first time, he now says that Lord Rennard's inappropriate

:09:29.:09:31.

behaviour was known when he resigned as the party chief

:09:31.:09:37.

executive in 2009. Lord Rennard refutes the allegations of sexual

:09:37.:09:39.

harassment made against him. Vicky Young's report contains flash

:09:39.:09:43.

photography. The questions keep coming for Nick

:09:43.:09:49.

Clegg and the answers well, they keep changing. A week ago, he said

:09:49.:09:51.

he didn't know complaints had been made about Lord Rennard's behaviour.

:09:51.:09:56.

Now he says they were part of the reason the peer resign.

:09:56.:10:02.

-- resigned. The Lib Dem leader was doing his bit for the by-election

:10:02.:10:09.

in Eastleigh. Mr Clegg offered yet another version of what happened

:10:09.:10:13.

rumours surfaced about Lord Rennard. He left for health reasons and

:10:13.:10:19.

those health reasons are well-known, but as everybody now knows, these

:10:19.:10:25.

concerns about Lord Rennard's behaviour, inappropriate behaviour,

:10:25.:10:28.

were obviously circulating at the time. That was in the background as

:10:28.:10:35.

well. Lord Rennard denies any impropriety

:10:35.:10:40.

and his friends contradict Mr Clegg, insisting his health was the only

:10:40.:10:43.

reason he resigned. Now for the first time, one of the party's

:10:43.:10:49.

senior women has spoken out. Lady Williams says Lord Rennard is a

:10:49.:10:53.

fine man and the whole thing has been exaggerated and came to Mr

:10:53.:11:00.

Clegg's defence. Nick has behaved in a exemplary way.

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If people are not prepared to have their names recorded.

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That's upset one of the women who complained about Lord Rennard years

:11:06.:11:09.

ago. She says she will be speaking to the police tomorrow about what

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happened. I always had a lot of respect for

:11:13.:11:17.

Shirley Williams so I'm disappointed by that. It was a

:11:17.:11:20.

serious incident. It was more, people have been talking about

:11:20.:11:25.

hands on the knee and things like that, it was very much more serious

:11:25.:11:27.

than that. Tonight, it emerged that Lib Dem

:11:27.:11:33.

peer Lord stoneham has been reprimanded.

:11:33.:11:37.

This row has been rumbling on for a week with the Liberal Democrats

:11:37.:11:42.

finding it impossible to deal with the fallout and Nick Clegg's

:11:42.:11:46.

handling of the situation coming in for criticism. The by-election just

:11:46.:11:50.

hours away, the party's hoping the voters of Eastleigh have other

:11:50.:12:00.

Live now to Eastleigh where that by-election is taking place. Ross

:12:00.:12:05.

Hawkins is there. How do things stand tonight? Fiona, many people

:12:05.:12:08.

here are still dealing with the story about Lord Rennard. It is an

:12:08.:12:13.

indication, I think, as to just how quickly this is moving that earlier

:12:13.:12:18.

on the walls of the Lib Dems HQ there was a picture of Lord

:12:18.:12:22.

Stoneham celebrated as a VIP visitor to this campaign. Since

:12:22.:12:27.

then we've learned he has been formally reprimanded bit party.

:12:27.:12:29.

Activists are asking where this leaves the campaign. The

:12:29.:12:34.

Conservatives Partys and Liberal Democrats regard themselves as

:12:34.:12:38.

broadly level pegging. The great unknown is UKIP. They are polling

:12:38.:12:41.

much better at the end of this campaign than they were at the

:12:41.:12:46.

start. Labour are wondering out loud whether they could push either

:12:46.:12:49.

the Conservatives or the Liberal Democrats into third place. It all

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means even if UKIP don't win a seat, which would be a momentous result

:12:53.:12:56.

for them, they could still come second and give a larger party a

:12:56.:13:01.

very bloody nose. Thank you.

:13:01.:13:05.

There is a full list of all the candidates contesting the Eastleigh

:13:05.:13:13.

by-election. It's on the BBC News website. That's bbc.co.uk/news.

:13:14.:13:17.

Italy's political system remains deadlocked tonight after

:13:17.:13:20.

inconclusive elections gave no party overall control in the lower

:13:20.:13:25.

House and Senate. Beppe Grillo, the leader of the anti-establishment

:13:25.:13:31.

Five Star Movement, today told the BBC he's ruemed out a pact with any

:13:31.:13:36.

other political grouping. He described Pier Luigi Bersani as a

:13:36.:13:40.

political stalker and a dead man talking.

:13:40.:13:43.

The head of the balloon company involved in yesterday's fatal crash

:13:43.:13:46.

in Egypt has admitted to the BBC that another of his balloons

:13:47.:13:50.

crashed 18 months ago. He said that he hopes to be flying balloons

:13:50.:13:54.

again within six months. 19 foreign tourists, three of them from

:13:54.:13:58.

Britain, were killed when their balloon exploded and crashed to the

:13:58.:14:08.
:14:08.:14:09.

ground near Luxor. One other It's here on the banks of the Nile,

:14:09.:14:14.

the hot air balloon crashed from the skies. Remnants of the basket

:14:14.:14:18.

and belongings of some of the passengers still lay on the ground.

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Flowers have now been laid here too. The balloon's thought to have been

:14:23.:14:28.

close to landing when a fire broke out. The heat lifting it higher

:14:28.:14:35.

before an explosion brought it down in the most horrifying of ways. The

:14:35.:14:41.

only tourist to survive was Michael Renni from Perth. Doctors say he's

:14:41.:14:47.

physically well but distraught. His wife Yvonne was killed. So too was

:14:47.:14:52.

Joe Bampton and his partner Suzanna Gyetvai who worked for an auction

:14:52.:14:56.

house in west London. Colleagues have been devastated. For most

:14:56.:15:01.

people here he was like a brother and it's like loseing a brother.

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It's very, very difficult. He was a lovely, lovely man. We went to meet

:15:06.:15:10.

the manager of the company in Luxor that operated the balloon that

:15:10.:15:13.

crashed. He told us they passed a government inspection only two

:15:13.:15:20.

weeks ago. TRANSLATION: Everything that was

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checked in the balloon was perfect. We have never had any problems

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before. Things have only gone wrong when there has been bad weather.

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knew that was a lie. We showed him footage of an accident 18 months

:15:36.:15:43.

ago, when one of his balloons crashed into the Nile.

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We listed other incidents. He just tried to explain them away. This is

:15:49.:15:53.

a company that had been used by Thomas Cook for customers that

:15:53.:15:58.

chose to take balloon rides as part of their package holidays. Today, a

:15:58.:16:03.

spokesman for Thomas Cook said, "In this tragic case, the operator, Sky

:16:03.:16:07.

Cruises had been verified and approved by the Egyptian Civil

:16:07.:16:12.

Aviation Authority. We, like all other major tour operators, rely

:16:12.:16:17.

upon this endorsement. The question may be should they

:16:18.:16:21.

rely on checks by Egyptian authorities or are those same

:16:21.:16:24.

authorities culpable for allowing companies to continue to operate

:16:24.:16:30.

when they endanger the lives of tourists.

:16:30.:16:34.

Coming up on tonight's programme: The best friend of Reeva Steenkamp,

:16:34.:16:38.

who was shot dead by her boyfriend, Oscar Pistorius, has been speaking

:16:38.:16:46.

about her final hours. She said last night that she was

:16:46.:16:52.

sleeping out and I think, you know, you look back and you say, well,

:16:52.:17:00.

why didn't we say "come home". It's said to be one of the most

:17:00.:17:03.

ambitious trade deals between six Central American countries and the

:17:03.:17:08.

European Union to import a range of produce such as frout, rice and

:17:08.:17:12.

beef. It also includes sugar, one of the region' largest industries,

:17:12.:17:15.

which is already feeling the benefit as producers now receive a

:17:15.:17:18.

higher price for their products. Humphrey Hawksley has been to

:17:18.:17:21.

Guatemala to see how it might affect a country where over half

:17:21.:17:26.

the population live below the poverty line. From a country with

:17:26.:17:31.

high levels of poverty and malnutrition comes one of the most

:17:31.:17:40.

modern food industries in the world. This is raw sugar in gat Malia. --

:17:40.:17:43.

Guatamala. The country has signed a breakthrough deal to sell to Europe,

:17:43.:17:47.

where it gets a higher price. is an issue here, and you can call

:17:47.:17:51.

it what you want, about our sugar being consumed in all markets of

:17:51.:17:57.

the world. We value the taste and the know-how of the European

:17:57.:18:02.

consumer. The more sugar they have on there, the Queen of England eats

:18:02.:18:06.

our sugar, we'll be extremely proud. But there are conditions. This

:18:06.:18:12.

trade agreement is one of the first that directly binds market access

:18:12.:18:16.

to human rights and democracy, working conditions too. With a big

:18:16.:18:19.

exporting company like this, the staff get health care and other

:18:19.:18:26.

benefits. Treating them well is seen as good for business. Then we

:18:26.:18:34.

travelled to a very different world, not far away, but a dark contrast.

:18:34.:18:41.

These sugar cane cutters work for small, independent farmers.

:18:41.:18:44.

Guatamala has to start ensuring their rights too or the agreement

:18:44.:18:51.

could be suspended. These are the vulnerable of the sugar industry.

:18:51.:18:57.

They get up before dawn and work through until dusk. It's hot. It's

:18:57.:19:02.

dangerous and there are children here.

:19:02.:19:06.

Michael says he's 14, but he doesn't look it. Many of the

:19:06.:19:12.

children have stunted growth through malnutrition. They still

:19:12.:19:17.

work, -- they still work as family bread winners. With a machete, it's

:19:17.:19:22.

not safe at all. TRANSLATION: I start work at 3am.

:19:22.:19:29.

We get a bit of food and the water we drink comes from the river. It's

:19:29.:19:35.

difficult to work all day. mainstream industry maintains that

:19:35.:19:40.

sugar harvested like this would never be sold to Europe. The checks

:19:40.:19:46.

are too rigorous. Europe says it's impossible to be completely certain.

:19:46.:19:51.

The labour activists who brought us here are not convinced by the

:19:51.:19:58.

agreement. Europe is. It is a good thing because the agreement will

:19:58.:20:02.

give us stronger mandate for the EU to monitor and stronger framework

:20:02.:20:06.

for the government to be able pull together all the actors together

:20:06.:20:10.

and the government itself do the internal job of monitoring the

:20:10.:20:15.

respect of human rights. The trade deal is one of the most

:20:15.:20:20.

ambitious the EU has signed. But how much will it help change these

:20:20.:20:30.
:20:30.:20:31.

David Cameron has said the Government needs to go further and

:20:31.:20:35.

faster in cutting Britain's deficit in response to the loss of the

:20:35.:20:39.

country's triple-A credit rating. He was speaking at Prime Minister's

:20:39.:20:42.

Questions. His comments came after official figures show that the

:20:42.:20:47.

economy grew by 0.2% in 2012, but that's up from a previous estimate

:20:47.:20:52.

of zero growth. Stephanie Flanders is here. First of all, what do you

:20:52.:20:55.

make of Mr Cameron's comments? don't think he was suggesting we

:20:55.:21:01.

are going to see a list of deficit cuts announced in the budget next

:21:01.:21:05.

month. The Prime Minister's spokesmen at Number Ten were keen

:21:05.:21:07.

to clarify that after Prime Minister's Questions. They were

:21:07.:21:13.

saying, they said look, he was saying possibly a bit clumsily

:21:13.:21:16.

things that we already knew, that the Government will have to spend

:21:16.:21:19.

longer than it thought in getting rid of the hole in the public

:21:19.:21:22.

finances, because it's turned out to be larger than they thought. And

:21:22.:21:26.

it's going to have to have a faster pace of deficit reduction in future

:21:26.:21:29.

than this year. We may not have seen the borrowing fall at all in

:21:29.:21:32.

the last year. It speaks to the very aggressive way they've

:21:32.:21:38.

responded to this news of the loss of the triple-A rating last week.

:21:38.:21:44.

Citibgdz say -- critics say it's a sign of the failure of George

:21:44.:21:47.

Osborne's course. They've been determined in saying no, it shows

:21:47.:21:52.

how right we were. If we hadn't taken the taufproch on the deficit

:21:52.:21:56.

the borrowing -- tough approach on the deficit the borrowing would

:21:56.:22:00.

have been that much higher. What about the GDP figures? The Office

:22:00.:22:03.

for National Statistics has the first take on the GDP figures,

:22:03.:22:07.

which we had at the end of January. Now it has more numbers. It's taken

:22:07.:22:11.

another look at them. It hasn't decided that anything different

:22:11.:22:15.

happened in the last three months of the year. The economy shange.

:22:15.:22:20.

We've had revisions to previous parts of the year. We had 0.2%

:22:20.:22:28.

growth, if you strip out of the effect of decline in North Sea oil,

:22:28.:22:33.

it is more like 0.6%, which is better than we might think. Some

:22:33.:22:36.

bad news is that there's been no sign of support from exports, in

:22:36.:22:39.

fact trade, which we were hoping to play a much bigger part in growth,

:22:39.:22:44.

has been pulling back the economy. The only thing supporting it last

:22:44.:22:47.

year was Government spending and spending by hard-pressed consumers.

:22:47.:22:53.

Thank you. The best friend of Reeva Steenkamp,

:22:53.:22:58.

who was shot dead by her boyfriend, Oscar Pistorius, has been speaking

:22:58.:23:02.

about her final hours, describing the model as a thoughtful person

:23:02.:23:06.

who everybody loved. She told our Africa correspondent Andrew Harding

:23:06.:23:12.

that she wanted to make sure Reeva's voice is heard.

:23:12.:23:16.

Reeva Steenkamp at home in the weeks before she died. She was

:23:16.:23:20.

living in the suburbs of Johannesburg with her close friend

:23:20.:23:27.

Gina Myers and family. Gina showed me Reeva's bedroom and spoke of the

:23:27.:23:34.

family's grief. My dad is a mess. I think because she was living here,

:23:34.:23:40.

he feels like he didn't protect her. She said that night that she was

:23:40.:23:47.

sleeping out. I think, you know, you look back and say well why

:23:47.:23:52.

didn't we say come home. Instead, Reeva was shot dead by the man

:23:52.:23:56.

she'd been dating for about three months, Oscar Pistorius. He used to

:23:56.:23:59.

come to the house here to pick Reeva up. So what happened that

:23:59.:24:07.

night? We all just want to know the truth. I think that's everyone in

:24:07.:24:17.

the world now. Do you think Reeva was happy? I did. And happy in her

:24:17.:24:23.

relationship? Yes. So what do you think the truth is? I don't want to

:24:23.:24:28.

comment on that. You'll wait for the trial? I'll

:24:28.:24:31.

wait for the trial. But that trial is months away and

:24:31.:24:37.

in the meantime, Reeva Steenkamp's friends and family worry, as is so

:24:37.:24:41.

often the case even with far less famous murder suspects, it's the

:24:41.:24:46.

victim who's being forgotten. I want people to know Reeva. Do you

:24:46.:24:52.

feel she's been overlooked? I do. I feel like, at the end of the day,

:24:52.:24:58.

Reeva was killed. Her friends speak of a romantic, ambitious woman and

:24:58.:25:07.

believe that justice will prevail. Now how much do you drink or rather

:25:07.:25:11.

how much do you add noit drinking? New research in England suggests

:25:11.:25:15.

there's a big difference. The study by University College London

:25:15.:25:18.

compared alcohol sales figures in England with surveys detailing what

:25:18.:25:23.

we say we drink. Almost half the alcohol sold is unaccounted for,

:25:23.:25:27.

indicating we're drinking much more than we admit to. The authors of

:25:27.:25:30.

the study suggest that could mean 80% of women and three quarters of

:25:30.:25:35.

men are drinking more than the recommended safe levels.

:25:35.:25:38.

You'd have thought winning two gold medals at the London Olympics would

:25:38.:25:42.

give you an international sporting reputation, but for one British

:25:42.:25:50.

superstar, it seems, it wasn't quite enough. Month Farah racing to

:25:50.:25:53.

victory in an athletics Grand Prix in Birmingham. A household name,

:25:53.:25:57.

but not over in the States, it turns out. After winning the New

:25:58.:26:01.

Orleans half-marathon at the weekend, Mo, ever keen to please

:26:01.:26:06.

agreed it a post-run interview. Then came a question he couldn't

:26:06.:26:12.

have expected. Now haven't you run before? Sorry? Haven't you run

:26:12.:26:18.

before, this isn't your first time? No, it's not my first time. I've

:26:18.:26:21.

done before half-marathon, but not New Orleans, this is my first time

:26:21.:26:27.

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