16/04/2014 BBC News at One

Around 300 people, many of them school children,

are missing after a ferry capsized off the coast of South Korea.

A major rescue operation was launched,

but the ferry sank within 90 minutes,

and it's feared many passengers were trapped beneath deck.

The announcement told us that we should stay still,

and there were a lot of students who did not get out of the ship.

More than 150 people were rescued - they've been taken to a gym

on a nearby island, where they're being looked after.

We'll have the latest on the search-and-rescue operation

Also this lunchtime, for the first time in four years, wage increases

overtake the rise in the cost of living and unemployment falls again.

The former Co-op Bank boss Paul Flowers has been charged

with possession of drugs, including cocaine.

Tesco announce falling profits for the second year in a row.

And a sunny welcome for the Duke and Duchess of Cambridge as they arrive

in Sydney with their son at the start of their tour of Australia.

a record number, 100,000 children apply for primary-school places.

And how a stolen hat inspired a grieving mum

Good afternoon and welcome to the BBC's News At One.

after a ferry capsized and sank off the coast of South Korea.

But at least three people are known to have died,

and it's feared that number will rise considerably.

Almost two thirds of those on board were school children

for the 14-hour journey to the tourist island of Jeju.

was three hours from its destination when distress calls were made.

Lucy Williamson reports from South Korea.

They had been clinging on for half an hour when rescue came - students

on a school trip to South Korea's holiday island. Each tiny figure

emerging from the crippled Hal, a lifeline for one parent, brother or

sister waiting on shore. -- hull. But as they were being asked to

rescue boats, the ship beneath them began to sing. Within the hour, it

was almost gone. The worry for rescuers and parents is that some of

the passengers were still inside. Those who were picked up by rescuers

have arrived on shore and begun to tell their stories, how they felt a

third before the ship began to tilt, how some students were told to jump

into the water before it went down and some were told to stay.

TRANSLATION: The announcement told us we should stay still, but the

ship was already sinking, and there were lots of students who did not

get out of the ship. TRANSLATION: It was very tense, the ship was tilted

more than 45 degrees, and it was very tense.

For survivors, the reunions have already begun. The full horror of

what might have been giving way to tearful relief. For now, they are

the minority. With so many of those on board still unaccounted for, the

demands of their parents and others here on shore are growing

increasingly desperate. TRANSLATION: I felt like my heart stopped, I

cannot describe the feeling with one word. I was too shocked, I cannot

even talk about it. Many more families are waiting for

news of those still missing and demanding answers. What happened on

this routine journey, they are asking, why did this very sink, and

where are our children? Lucy Williamson, BBC News on the South

Korean coast. We can get the latest from the South

Korean capital, Seoul, Martin Patience is there. Unimaginable

scenes for the parents waiting to find out if their children are

alive, what is the latest on the search and rescue operation? The

latest figures are that four people are confirmed to have died in his

accident, although the death toll is expected to rise with almost 300

people still missing. This massive search and rescue operation has been

under way now for more than 12 hours, it is now dark in South

Korea, and that of course will complicate efforts. The fear is that

many of the missing are trapped in the hull of this very, which of

course sank. We know that dozens of divers have been sent down to be

submerged vessel in order to try and find any of the survivors. As we

have been hearing, most of the passengers on board were high school

students on a trip to a holiday island. For their families, for the

families of the missing, it is a desperate weight as the search

continues. Martin, thank you. After four years

of falling living standards, wage increases have finally risen

above the rate of inflation. Weekly pay, including bonuses,

went up by 1.7% in February, according to the Office

for National Statistics. It comes as new figures show

that unemployment fell by 77,000 in the three months to February,

to just under 2.25 million, Our chief economics correspondent,

Hugh Pym, reports. The economic wheels are turning,

companies like this one are expanding, and that is better news

for jobs and wages. This firm supplies materials for household

kitchens and flooring. It started life in the recession and has grown

fast, but only now is the boss able to start offering wage rises. We are

increasing the level of pay for the staff at the moment, and we are

going through the process because we want to retain the excellent staff

that we already have, and the state of the economy is now allowing us to

pay a higher wage, whereas turn the clock back a couple of years, it

would have been different. Across the economy, the gap between pay and

price increases has closed. Inflation picked up rapidly from

2010, but it has fallen back a lot in the last few months. Average wage

rises were running well behind inflation but have now caught up. So

on paper at least the long squeeze on spending power is over. The news

was welcomed by ministers but with an acknowledgement that it would be

a while before the recovery was complete. There is still a very long

way to go, both to ensure our economy is fully recovered and that

living standards are growing in a sustainable way. That is why we

absolutely have to stick to the plan we have laid out that has got us

this far in terms of economic growth. And some economists argue it

could take some time for people's living standards to get back to

where they were before the recession. We have to remember we

have been through the biggest squeeze on spending power and real

incomes since the 1920s, so it will take a number of years, probably

five, possibly ten, before that spending power is fully restored.

Labour argued that, for many, the cost of living problem had not gone

away. There is still an awful lot more to do to tackle rising prices,

especially gas and electricity bills, and do more to ensure that

wages start to increase, particularly for people in part-time

jobs, zero hours contracts, who are struggling to make ends meet right

now. With more jobs being created in the economy and the unemployment

rate falling below 7% of the workforce, there is no doubting

there is a brighter outlook in the labour market.

You is with me now, we have been waiting for this, a significant

moment? Indeed, Sophie, we have got figures suggesting bonuses and wages

were up 1.7% in the year leading up to February, and then in March, as

we discovered yesterday, inflation dipping to 1.6%. So the end of the

cost of living squeeze on paper, which has gone on for several

years. So significant in the economic and political debate. One

important factor, as we lent more about today, is that the economy is

creating more jobs. That means employers have to pay a bit more to

retain and recruit people. Good news for workers and good news for the

economy, and obviously the unemployment rate falling below 7%,

that is another important milestone. The Government on the

Bank of England have set 7% as the threshold to review interest rates.

He has moved on to a different way of assessing it, and unemployment

has fallen faster than he expected, down to 6.9% of the workforce.

Positive news on jobs. One slight issue is that quite a lot of the new

jobs have been self employment, people who are self-employed rather

than fully employed, and what we don't know was whether they want to

be doing that or whether they possibly there because they have

lost jobs elsewhere. To Westminster now for political reaction, our

chief political correspondent, Norman Smith, is there. As he was

saying, a significant moment economically but also politically,

how much pressure does this put on Labour? It is an important moment

politically, but there is a paradox here in that while it is important

politically, it will not make a blind bit of difference for most

people. Most people will still be facing pay freezes, benefit curbs,

rising fuel prices and pressure on their living standards for years to

come. Politically, it is symbolically critical for the

Government. They can at long last say, your pay is beginning to

outstrip prices. More than that, the earnings figures coupled with the

big fall in unemployment following on from yesterday's inflation

suggests the recovery is taking hold much faster and more strongly than

many people suspected, and certainly well before the general election,

giving the Government month after month in which they can say to

people, you are slowly getting better off. As for Labour, they are

not going to run up the white flag on the cost of living argument, but

they will not be saying, you are going to be worse off by the next

election than compare to the last election. There will be a brief

frame in, a shimmy and a shift in their core argument. They will say

it is also about job security, about their children's prospects, about

getting full-time work, and the reason for that is because today's

figures tell us although there is an awful long way to go, the tide is

now turning on the cost of living. Norman, thank you.

says Russia has started to export terrorism to Ukraine

and wants to destroy the country's independence.

entered the eastern town of Kramatorsk

to recapture areas seized by anti-government separatists.

However, they were blocked by civilians,

and it's unclear whether they have any control of the town.

Armoured vehicles passing checkpoints on their way into the

eastern city of Sloviansk. The forces are welcomed by men carrying

guns and cheering crowds. Heavily armed, these troops are flying the

Russian flag, and they looked ready for a fight. This soldier claims

some of them are from the Ukrainian army. We have switched sides, he

says. It is not entirely clear whether these men have truly

defected or who they are. Either way, it is a sign that the Ukrainian

government faces a serious fight to regain control of buildings occupied

by pro-Russian activists. Earlier, in Kramatorsk, Ukrainian soldiers

tried to move in but didn't get very far. Crowds and pro-Russian militia

surrounded their armoured personnel carriers, questioning why they were

there. These troops are meant to be part of what Kiev has called an

anti-terrorist operation. It doesn't seem to be going according to plan.

In Donetsk, pro-Russian activists have taken control of another

building. The mayor's offers. They met no resistance but did not seem

happy about being filmed. Outside, their supporters demanded more

autonomy from Kiev. This man says they want a referendum on more local

powers. The Ukrainian military build-up continues in the east, with

helicopters and tanks on the move, possibly preparing for an assault.

An assault on people who say they are not going to give ground. Duncan

Crawford, BBC News, Donetsk. We can get the latest from Donetsk, James

Reynolds is there, the situation remains very unclear. It does, but I

think there is one thing we can say at the moment, and as far as we can

tell, Kiev has not taken back any of the lost ground that it gave up two

pro-Russian occupiers over the last week. Its large anti-terrorist

operation, as it calls it, is under way, but it has yet to have anything

to show for it, and that will be a source of major disappointment in

Kiev. I was on the ground earlier today in Kramatorsk, and I saw a

crowd surrounded convoy of Ukrainian vehicles, and then suddenly

pro-Russian activists, well armed, also surrounded it. It was difficult

to see how that stand-off ended. We have also had reports of convoys

carrying Russian flags, we are still checking those out. And NATO has

reacted in the last hour, suggesting it will reinforce its presence in

Eastern Europe, in the Baltic and in the eastern Mediterranean, a sign of

how tense the situation is. James, thank you very much.

after a pile-up involving at least four vehicles this morning.

Six people have been taken to hospital

after two lorries, a car and a van collided

at around 9:30 this morning, closing both lanes of the motorway.

Police have told motorists to avoid the area, and they say the motorway

is likely to remain closed until at least the early evening.

Paul Flowers, the former chairman of the Co-operative Bank,

has been charged with possession of drugs.

Mr Flowers stepped down as head of the bank last summer

amid claims of illegal drug use and inappropriate expenses payments.

Danny Savage is at Stainbeck police station in Leeds.

Sophie, Paul Flowers has been on bail in relation to these charges

since November last year, so we came to answer bail again today. He found

the door locked when he arrived and told waiting journalist that they

were vultures. He eventually got inside, was interviewed by

detectives for an hour or so, and then his solicitor came out to say

that Mr Flowers had been charged with two counts of possessing Class

A drugs, including cocaine, and one count of possessing a class see

drug, known as testament. The next stage in the process will be that he

will have to appear before magistrates in Leeds on me the

seventh. He came to prominence in November last year when, as the

former chairman of the Co-op Bank, revelations were made about his

private life in a Sunday newspaper. Those charges that have been put to

him relate to that time in November last year, so he has now been

charged. The next stage is the magistrate appearance, that will

take place next month. Sophie. At least 300 people have died and many

are missing after a ship capsized off the coast of South Korea. A

search is under way for survivors. Coming up: We'll be live in Orkney,

where there is a campaign for greater powers for the islands,

whether or not Scotland votes for independence.

The film he almost forgot - Terry Jones tells us

about his new work ahead of the Monty Python reunion this summer.

can we keep it for the rest of the Easter break?

Britain's supermarkets have been engaged in a price war

for the last few years as they battle it out for customers.

Discount retailers like Aldi and Lidl are piling on the pressure

and more and more people are doing their weekly shop online.

And it seems that it's taking its toll.

The UK's largest retailer, Tesco, has announced that profits have

Here's our personal finance correspondent Simon Gompertz.

The profits are still colossal but the direction of travel, downward,

is causing alarm. So much so that Tesco's chief executive faced

questions today over whether he would keep his job. I intend to see

this job through. We're in the middle of a very big change. I'm

going to make Tesco better for customers and that's how,

ultimately, we will be measured. It's the invasion of the UK by

cut-price competitors that is putting Tesco and other competitors

to flight. Aldi's sales have jumped 35% in a year, Lidl's are up 17% and

at the top end, Waitrose has gained nearly 5% and Tesco has just

revealed a 1.4% crop in sales. The discounters say they are winning

over middle-class shoppers, like fleas in Bournemouth, who are no

longer embarrassed to be seen in their stores. I find Tesco a bit

dearer for most things so you go where you think the bargains are,

don't you? Some of the establishments can be a little

high-handed in the way they treat their customers. They say it's a

bargain but when you look closely, it's not. Just as internet shopping

is shaking up the grocery business as never before, loyalty to Tesco is

slipping away. Tesco today isn't any more value. It also isn't quality.

It's just everywhere. That's a very different offered to customers and

it's partly of their own making. They've been increasing prices way

too fast over the last five years. Tesco's convenience stores have done

better. It's revamping hundreds of other supermarkets. It says it's

reducing prices and coming up with new ways to deliver to online

customers. But as the biggest player, in the middle of the market,

it is the target for all the others. If ever Tesco needed a little help,

it's now. It's being urged to bring in more discounts, but that would

deal a another blow to profits. The former editor of the News

of the World Andy Coulson has revealed for the first time that he

did listen to private voicemail messages relating to former home

secretary David Blunkett in 2004. He told the phone hacking trial

at the Old Bailey that one of his senior reporters had played

him excerpts of the messages left But Andy Coulson said it was

the first and last time messages Our home affairs correspondent

Tom Symonds is at the Old Bailey. Sophie, this was new evidence. Andy

Coulson said that in 2004 he was on holiday in Italy when his chief

reporter phoned up and said he had voice mail messages of David

Blunkett, from his phone, which suggested he was having an affair

with the publisher Kimberly Quinn. Mr Colson told the court he was

angry about this and said, "what do you think you are doing?" But when

he came back to Britain, he told the court that the reporter played him

part of those messages and that resulted in Andy Coulson going to

David Blunkett and saying that the newspaper had evidence they were

having an affair. But he didn't - and the tape was played to the jury

- tell Mr Blunkett that that evidence came from phone hacking. Mr

Coulson said he felt that was a mistake and she should have laid

that in front of Mr Blunkett, the Home Secretary at the time. It may

have brought the whole thing to ahead, he said, and he said it may

have ended in police action. The context of this is that two years

before he told the court yesterday phone hacking was just something

that journalists gossiped about. Today he said that in 2004 he knew

one of his reporters had hacked messages. But it wasn't until 2007

that Andy Coulson resigned because of phone hacking.

British commanders must bear a degree of responsibility

for breaches at Camp Bastion in two years ago, which left two

American servicemen dead and eight British personnel wounded.

That's according to MPs on the Defence Select Committee.

They say when Taliban fighters attacked the camp,

troops were exposed to unnecessary risk,

partly because more than half the guard towers were unmanned.

Here's our defence correspondent Caroline Wyatt.

Set in the middle of the Helmand desert, far from any town,

Camp Bastion was seen as impregnable.

Suicide bombers had never breached the perimeter fence

and MPs now say the forces inside - British, American and Afghan -

But in September 2012, a Taliban attack took everyone by surprise.

This training video, released at the time by insurgents,

allegedly showed how they planned to get into the camp.

Something 15 Taliban fighters managed under cover of darkness,

the gun battle lasting into the next day.

The insurgents killed two US Marines and injured eight British troops

Six US Harrier jets were destroyed in the attack at a cost

The RAF Regiment and others helped fight insurgents and killed all

The defence committee's report found that arrangements for

Fewer than half the towers were manned.

Insufficient attention was given to the need to defend the camp and MPs

say British commanders must bear their share of the responsibility.

It's absolutely essential that the Ministry

of Defence learns proper lessons from the events that happened here

and doesn't display the complacency that we say did get displayed here.

You must not underestimate the enemy and you must put in place

The Defence Secretary Philip Hammond said the MoD was not complacent and

always sought to capture and learn lessons from current operations.

British forces are well aware today that as they prepare to leave

Camp Bastion and Helmand by the end of the year, vigilance remains

As the people of Scotland consider whether or not

to vote for independence, a campaign for greater powers is gathering pace

Campaigners say they want to see more control at a local level -

whatever the result of September's referendum.

Our Scotland correspondent James Cook is in Kirkwall in Orkney.

Yes, Sophie. Often the debate about independence happens in black and

white terms - a simple yes or no to the vote in September. But here in

Orkney, it's more interesting, with this campaign mounting for greater

control on the islands of their own affairs.

Orkney looks, feels and sounds different.

There's a respect for old traditions here, a slower pace of life

But scratch the surface and opinions are strong.

the yes campaign are offering us more future and more positivity than

the fearmongering negative campaign.

I'm probably the same as 95% of the islanders here,

Although I do know that Edinburgh's closer to Orkney than London.

But these islands have strong Scandinavian connections and some

feel that choosing between Edinburgh and London is beside the point.

The debate about Scotland's future is very different here in Orkney.

"We're either ruled from a long way away or a longer way away."

And so the islanders have come up with a plan.

Orkney has joined Shetland and the Outer Hebrides

pushing for local control of local issues such as fishing,

These islands should be more empowered to look

after their own future, to make their decisions about the

Because we're islanders, we have a mindset that means we

like to fix things ourselves, sort things out ourselves.

The Scottish Government and the Labour Party are both enthusiastic.

So too is the UK Government, whose Secretary of State for Scotland

and as Secretary of State for Scotland,

I've been quite determined that there should be more power and

more influence coming from Westminster direct to

It feels like a campaign on the move.

Whatever happens to Scotland in September,

these islands are hoping for a brighter future.

Well, there is certainly some vocal support for independence here and a

lot of quiet opposition, as well. But both sides, in large part, agree

that they want more powers and I think the momentum is now with them.

They're moving towards it. The Scottish Government, Labour and the

UK government all back them. I think they feel that this will happen.

Thousands of people have lined the steps of Sydney Opera House to

welcome the Duke and Duchess of Cambridge to Australia.

The couple, with eight-month-old Prince George,

had arrived in the country after ten days in New Zealand.

Our royal correspondent Nicholas Witchell was there.

Another airport arrival, this time in Australia, and another appearance

by George, once again carried down the aircraft's steps by his mother,

who had chosen bright yellow for her debut in Australia. For his, George

found himself shaking a few of the VIP hands being held out to him.

There was a change of carrier from Mum to diet, followed by a vigorous

bout of bouncing. Then it was one of those hunches of flowers which

people keep giving to mum to inspect stop all becoming part of a day's

work for this particular eight-month old. William and Katherine headed

into central Sydney. Most of the city carried on its day as normal.

There was no ceremony or public welcome. But at the Opera house, by

Sydney Harbour Bridge, a few thousand had gathered in the autumn

sunshine to welcome them. Inside the Opera house, William spoke about his

family and the deep regard it feels for Australia. His own, he said, had

been learned directly from the Queen. The affection my grandmother

has for Australia is infectious. George has no idea what Australia

is, of course, but at the weekend, he is due to meet a bill be, a small

furry animal, when they visit Sydney zoo. I suspected that George's word

might be bilby because koala is hard to say. The message is clear that

Australia matters to the Royal family and as they arrived in the

country, there was a sense that Republican feelings may have been

stemmed. The front-page headline in the morning newspaper is, " as the

Royals arrive, the Republicans recede". They say that support for a

republic has slumped to its lowest level in more than three decades. A

poll had found 51% wanting to keep the monarchy, 42% favouring a

republic. For the moment, monarchy seems to be winning the day.

Time for the weather now with Nick Miller.

All eyes on the Easter weather. A promising start but I'll get to that

but in a moment. Some cloud is rolling in through Scotland and

Northern Ireland but still plenty of dry weather around this afternoon.

Still some bright sunny spells coming through the cloud but there

is a of rain around. The far north-west of Scotland could see

spit and spots and the same in the West of Northern Ireland. But to 70

degrees in northern England but for some, turning a bit hazy as the

afternoon goes on. We will keep crystal clear blue sky across the

West of England and Wales but towards the south coast, a

noticeable southeasterly wind. You've got the sunshine but there is

a breeze and a bit of a chill in the breeze, so temperatures held down

into low double figures. Lots of sunshine across Wales as well.

Turning hazy to the North. 15 degrees near Rhyl. For Northern

Ireland, not quite as warm as yesterday but eastern parts called

on to some bright skies. If you spots of rain and it continues to be

wet in the far north-west of Scotland. Elsewhere, despite the

cloud, mainly dry. The weather front bringing the rain moves south

tonight, heading through western parts of Scotland and across

Northern Ireland. By the end of the night across northern England and

North Wales. Blustery showers in northern Scotland. Clear spells in

southern England. A touch of ground frost tomorrow morning to stop

cloudier skies tomorrow for England and Wales but the rain of the

weather system dying away. We'll hold onto some sunshine across the

south coast and Southern counties and it will be a warmer day than

today. Showers and the wind easing and it will feel decidedly fresh in

Scotland. Southern areas could see 18, 19 and maybe 20 degrees. This is

the start of the long Easter weekend. Lots of sunshine on Good

Friday but a chilly start with a touch of frost and thanks to high

pressure, Saturday will continue in a similar vein. Then Easter day, an

area of low pressure comes into England and Wales with some rain

coming in. A cold day. Scotland and Northern Ireland will stay dry.

We'll keep you updated on the fine detail. A fine start this Easter but

later in the weekend, and increasing threat of rain as it turns

unsettled. At least four people have died and

300 - many of them schoolchildren - are missing after a ferry capsized

off the coast of South Korea.