05/11/2013 BBC News at One

The jury in the phone hacking trial hears evidence from the first

prosecution witness. They hear transcripts of Milly Dowler's

voicemails and how the messages were hacked after she went missing. We'll

be live at the Old Bailey. Also this lunchtime: Payday lenders come under

fire at Westminster, as Ed Miliband says the 'Wonga economy' symbolises

the squeeze on living standards facing ordinary families.

The sting that caught out over 100 British men who offered money to a

virtual child to perform a sex act on a webcam.

India blasts off into space, with a rocket heading for Mars, though

questions arise about priorities when so many Indians live in

poverty. Champion Jockey Tony McCoy could

notch up a record breaking 4,000th win this afternoon when he rides at

Exeter. Hundreds of people are summonsed to

court this morning in Brent for failing to pay their council tax.

And an eight-year-old boy shoots a five-year-old in Essex, leaving him

in hospital with serious injuries. Good afternoon and welcome to the

BBC News at One. The jury in the phone hacking trial against former

News International staff have heard transcripts of the desperate

voicemails left on Milly Dowler's phone. The court also heard that, in

2002, the News of the World changed a story in its second edition to

remove references to a message on the murdered schoolgirl's 'phone.

All eight defendants deny the charges. Our home affairs

correspondent Tom Symonds is at the Old Bailey. Yes, the hacking of

Milly Dowler's phone is the most notorious episode in the phone

hacking affair. News International has admitted that it happened, and

the hacker has admitted accessing the voice mails. The question for

the jury is did Rebekah Brooks, the editor at the time, Andy Coulson,

the deputy editor, or Stuart Kuttner, the managing editor, know

it was going on. Milly Dowler went missing in 2002, and in the days

that followed, friends and relatives left increasingly desperate messages

on her mobile phone voice mail, but they were being listened to by the

News of the World. the News of the World believed that

the message addressing her as Mandy, suggested she might be alive and

applying for a job. Reporters wrote stories in several editions of the

Sunday newspaper. The paper's managing editor, Stuart Kuttner,

also charged with being involved in phone hacking, had told police that

News of the World had a tape recording of the employment

agency's message. But detectives, busily searching for Milly Dowler,

warned that the message might be a hoax. The prosecution says what

happened next proved that Rebekah Brooks and Andy Coulson were aware

that phone hacking was the source of the story. She was on holiday in

Dubai, but the prosecution says phone records show that she was in

constant contact with Andy Coulson to get the story changed for a later

edition, which permitted mention of the phone messages -- omitted. But

Rebekah Brooks's representation said it was not clear if the records or

in Dubai time or UK time and it did not prove who she had been in

contact with or what was discussed. Much of the evidence discussed this

morning came from paper records, especially from phone billing

records and lists of the stories that the newspapers -- newspaper was

pursuing. There were interjections from a police witness to confirm

some of that, but there will be further witnesses this afternoon.

Thank you, Tom, at the Old Bailey. Payday loan companies have been

defending their record before a committee of MPs this morning.

Senior executives of the short-term, high interest lending industry say

the majority of their customers are happy with the service, and pay back

their loans on time. Our personal finance correspondent Simon Gompertz

reports. The outcry over high interest payday

lenders is intensifying. MPs said the lenders had not taken account of

what people could afford and accused the industry of having an unsavoury

element which exploited loopholes in the rules. Do you think that your

charges are extortionate? That you are a rapacious organisation? Of

course we don't accept that. Wonga and two other leading lenders said

they had cleaned up their act, and a spokesman claimed that Wonga was

cheaper than some unauthorised overdrafts from banks. The 30 day

charges run-up to ?115. That is the most expensive loan, over 30 days,

comes to ?37. I love my girlfriend. It was love at first sight. Longer

produced a film this week portraying its customers as people who can use

loans to achieve their dreams -- longer produced a film. Last year I

asked her to marry me. It admitted last year that 40,000 customers had

serious problems repaying. Lauren in districts -- illustrates the side of

the payday culture that causes concern as she got trapped in debt

by taking out new loans to pay off the old ones. It was really, really

bad. I did not sleep at night. I remember afterwards when my parents

found out, when everything was consolidated, and I think I had

forgotten what it was to actually have a night of sleep where I did

not have the pangs of feeling ill. One cause of worry in these kind of

cases is that lenders cannot check if new customers have picked up

multiple loans from other providers. That is probably the biggest

downside as a lender, not knowing in real-time what other loans the

customer has at the time of applying. What is to happen now is

for the MPs, the minister and the regulators to agree what they can do

quickly to protect the 1 million households that will probably take

out a payday loan to get through Christmas this year. Advertising

controls and tighter limits on rolling over loans are coming in.

But whether that will be enough is the question.

The Labour leader Ed Miliband has called for a 'living wage' to help

hard-pressed families out of poverty. Mr Miliband accused a

coalition of shrugging their shoulders about low wages and rising

prices. He also renewed his attack on energy firms and urged water

companies to offer special tariffs for the low paid. The comments came

as ministers wrote to water firms to urge them to keep bills at

affordable levels. From energy bills to groceries, prices are rising, but

most people 's wages are not keeping up. Labour is calling it a cost of

living crisis, and now the government is echoing the language.

The focus now is on water bills and negotiations are underway between

the regulator and water companies about the next round price rises.

The Environment Secretary has written a letter urging them to keep

increases as small as possible. This is just a warning shot to the water

companies that given the fact they have done well with low interest

rates in recent years that they are going into the next price round and

we want to see investment, but we want to see them being fair to

customers and passing on the benefit with either level prices or,

preferably, reduced prices. Average increases in water bills have been

in line with inflation and firms are more heavily regulated and energy

companies, but the Labour Party has ridiculed the government response.

The truth is that David Cameron has shown no interest in this until it

was raised by Ed Miliband last week. All of a sudden we have had a

panicked letter. If you read it carefully it sets out the same old

voluntary approach which has not worked so far. In a speech today,

the Labour leader continued his attack on David Cameron over living

standards. The link between growth and living standards is broken.

Growth without national prosperity is not economic success. Ministers

insist they are not just talking about fixing the economy and point

to the freeze on council tax bills and duty that have eased the burden

on hard-pressed families. Let's speak to Norman Smith at

Westminster. Norman, first it was the energy bills, now it is water

bills. It really does seem as though the cost of living is the centre of

political debate. Yes, and the row over water bills is the new frontier

in the tussle over the cost of living. There is an extraordinary

symmetry with the bust up over energy bills, only this time the

government is trying to get on the front foot via this letter to the

energy companies accusing them of making unexpectedly high profits.

Labour say letter is indicative of government inaction and they are on

the side of the companies rather than the customers. It is not just

the rhetoric that is similar to the energy row, the from both sides are

also similar with the government suggesting there needs to be more

competition. Maybe businesses could be allowed to shop around for water

supplies. Labour say government action is needed and that if they

were in power they would offer more social tariffs, and similarly the

response of the companies is similar to that of the energy firms saying

they need to invest in new pipes and sewers which is driving up costs.

And even some of the proposed price rises are similar with Thames water

pressing for an 8% rise, very similar to some of the price rises

we have seen from the energy companies -- Chems Water. -- Thames

Water. The names of more than 100 British men who offered money to a

child to perform sex acts in front of a webcam have been handed to

police by a charity in the Netherlands. The group carried out a

sting operation over several months posing online as "Sweetie", a

ten-year-old Filipino girl. To make it even more realistic, they used a

computer generated animation of a fake child. BBC News is the only

broadcaster to see inside the charity's operations room. You might

find Angus Crawford's report disturbing.

At a secret location on the outskirts of Amsterdam, researcher

poses as parade to catch a predator. -- as some prey to catch. This is

who he becomes, Sweetie, a ten-year-old girl from the

Philippines. Researchers could not have possibly used a real child, so

they created Sweetie. But tens of thousands of men who contacted her

thought they really were talking to a ten-year-old girl in the

Philippines. The researcher wants to remain anonymous because of the

paedophiles he's exposing. Here we go. Do like the older men?

Sometimes. -- do you like older men. Here he logs into a chat room, and

within seconds, like sharks, men are circling. It is terrifying. It is

really scary. It breaks sure stereotypical image of the predator,

because before I thought they were all 45-year-old males with very long

coats and a little bit dodgy, but now it appears that these guys have

normal jobs, normals families, are around my age, can be older,

younger. The diversity is enormous. I am not real. I am a computer

model. The charity which created Sweetie has launched a global

campaign to try and stop this abuse. WebCam child sex tourism is a

phenomenon spreading like a phenomenon spreading like an

epidemic. 20,000 men contacted Sweetie and 1000 were identified.

110 of them were British. All of those details have been handed to

police. We are now dealing with tens of thousands of children who are

victims of this new phenomenon, so there is definitely an increase. Two

or three years ago, it was virtually none, it is growing, and we have no

reason to believe that this phenomenon is restricted to the

Philippines only. Sweetie will not be used again. She has done her job.

Showing the predators that they too can easily become prey.

High Street retailer Marks and Spencer has announced a drop in

profits. They fell by 8.9% to ?261 million for the six months to the

end of September. Meanwhile the owners of Primark say it has enjoyed

a "remarkable year" with increased sales and profits. Here's our

business correspondent, Emma Simpson.

It is a star-studded advertising campaign, as Marks Spencer is

enlisted a cast of leading lazy -- leading ladies to boost their

women's clothing line, but there is no revival in sales yet. Although

food is doing really well with sales up 2.5% in the first half of the

year, general merchandise, which includes clothing, was down 1.5%.

But there was a slight improvement more recently. The hope was that

this autumn /winter collection would kick-start a turnaround in women's

clothing. But it is still early days. This complete range has only

been trading for around three weeks within these results. I think the

jury is still out as to whether this will be a big turnaround, and maybe

it is a case of that you will never get MMS with a 16% market share

again. It is a very fragmented market in the clothing market --

Marks Spencer with a 16% market share. But this retailer, different

story, as Primark found sales up by more than a fifth. Back at Marks

Spencer 's, the pressure is on this man, Marc Bolan -- Mark Bolland, to

deliver. I think Christmas will be crucial. If they don't have good

figures, investors will be unhappy. By the end of March they will have

come to the end of the three-year investment plan and the pressure

will be on them. Marks and Spencer's Christmas advert is about

to hit the screens, a glossy, winter fairy tale. Love the shoes. The

company says things are moving in the right direction. I believe this

is yours. But Marks Spencer needs to conjure up a better story going

into the New Year. Two police officers accused of giving

misleading answers to Parliament during recent evidence relating to

the so-called "Plebgate" affair are to face MPs again. The Home Affairs

Committee wants the two officers from the Police Federation to

apologise. The former Chief Whip, Andrew Mitchell, lost his job in

government after he was accused of calling police officers in Downing

Street "plebs", something he has always denied. Our Political

Correspondent Chris Mason is at Westminster.

Can these police officers be forced to apologise if they believe they

didn't mislead MPs? The committee can't themselves force an apology

from these police off severs but they have made it very clear that is

what they expect this afternoon. Last week, three police officers

appeared before them and a matter of days later two of them are back, so

we will hear from Detective Sergeant Stuart Hinton, from Warwickshire

Police and Sergeant Chris Jones, they are accused of giving

misleading and contradictory answers a week ago, this relate ocean a

meeting they had with Andrew Mitchell shortly after that row in

Downing Street. Now, if they don't apologise, they could be referred to

the House authorities, they could be found to be in contempt of

Parliament. Technically that carries a jail term. That hasn't happened

for ages and we are a long away of that. It gives you an idea of the

scale of the anger among MPs. There is a sense that the police trieded

to get rid of Andrew Mitchell for political ends. Regardless of what

happens this afternoon, they face further questions from the

Independent Police Complaints Commission, these officer, and none

of this relates to what happened specifically in Downing Street,

where eight people have been arrested and bailed, and the process

of discovering whether they will be charged is still going on.

Time now, it is 17 minutes past one. The top story.

The jury in the phone hacking trial hears transcripts of Milly Dowler's

voice mail, and how the messages were hacked after she went missing.

And still to come. Previously unknown masterpieces by Picasso,

Chagall and Renoir are among the works of heart found in a trove of

Nazi looted art in Germany. Later on BBC London. We look at a school in

Essex which has developed a radical way of teaching children with

autism. And the mayor launches London's poppy day appeal which aims

to raise ?1 million in one day. Now India has successfully launched

its first rocket mission bound for Mars, the most ambitious project for

the country's Space Agency to date. It is hoped the craft will reach its

destination in September next year, and will orbit the Red Planet

looking for signs it could support life. 3, 2, 1. Final countdown for

India's first mission to Mars. This the first stage of a ten month

journey to the Red Planet. At India's space centre there were

celebrations for a text book launch. If all goes well, the Mars probe

will start work next September, searching for signs of life.

Critics say it won't achieve anything new because it will only

orbit the planet and not land. India is more interested, they say

in leaping ahead of China, its main rival in a growing Asian space race.

There are questions too about the $73 million cost of the mission for

a country with millions in poverty. By comparison the US spends nearly

ten times as much on similar programmes. In total, India spends

round $1 billion a year on the space programme and has 20 satellites in

orbit for communications and weather forecasting.

And defenders of the Mars mission say it will not just be good for the

country's image but boost its development prospects too.

The former deputy Director General of the BBC Mark Byford has defended

accepting a redundancy deal worth nearly ?1 million. He insisted that

he had done nothing wrong. I appreciate obviously and understand

it was a lot of money, and I appreciate the concern and criticism

about the executive pay offs, I absolutely don't think it was greed

on my part at all. I lost my job, I was made redundant, I was given the

terms I was given by the BBC. Our media correspondent is here, so Mark

Byford's line seems to by was accepted what I was offered. You

have to remember what this is about. This is the settlement that

attracted most publicity, made three years ago, this is the first time we

have heard him speak, his defence is, well, he didn't negotiate, he

didn't ask for anything, he was given "What I was given." The

criticism has been that the BBC could have perhaps paid him ?316,000

less if they had been strict. He was asked do you or should you in any

way give some of that back? Do you feel he ought to. He said he said

was as much as he was going to say which Victoria Derbyshire said she

would take as a no. A court has heard how three careers bullied

vulnerable elderly residents at a care home near Lancaster. The abuse

is alleged to have taken place at Hillcroft Nursing Home in

Slyne-with-Hest. The prosecution claim that eight residents suffering

from dementia were abused, the defendants deny all the charges

against them. Ed, take us through what happened in

court. The abuse allegedly involves one resident being tipped out of a

wheelchair, another resident allegedly being slapped in the face,

the court was told that the defendants played football in the

care home, and laughed as they threw bean bags at the elderly residents.

Eight people in total who were being cared for at the Hillcroft Nursing

Home were allegedly abused. All of those residents were being treated

within the homes challenging behaviour unit. This is for people

with advanced Alzheimer's. The careers on trial today are Carol

Moore, 54, Katie Cairns, 27, and Gemma Pearson, 28. The prosecution

said the defendants told one witness they were bored than they were

throwing bean bags at the elderly residents for entertainment. This is

something the three people on trial here deny. They say they were

throwing bean bags for therapeutic reasons to help the patient, this is

expected to last for four weeks. Thank you.

Now, immigrants to the UK since 2000 have made a substantial contribution

to public finance, that is according to a major new report. The study by

University College London said cent immigrants were less likely to claim

benefits and live in social housing than people born in Britain. Our

Home Affairs correspondent reports. -- cent. The debate about

immigration has been fuelled by claims of benefit tourism. It is a

aer Goued they come to live off the state. This report suggests those

claims may not be true. Rather than being a drain on Britain's finance,

the contribution of migrants who have arrived since 2000 has been

consistently positive and remarkably strong.

The study found that migrants were 45% less likely to receive state

benefits or tax credits than people already living in wherein. They were

3% less likely to live in council homes or other social house, their

net contribution to public finances was estimated to be ?25 billion,

over a period of ten years. Immigrants who came after 1999 and

over the period between 2000 and 2011 have substantially contributed

more to, in terms of taxes than they have taken out in terms of benefit.

There was different findings from a separate analysis of immigrants

living in Britain since 1995. It found that people from outside the

European Economic Area, that is the EU, plus plea other European states

claimed more in benefits than they paid in tax, the listen was they

tended to have more children. There are different types of migrant. You

have those who come from work reason, their have high employment

rate, they don't make or low use of social housing and they make a

positive contribution. You have our groups who are more depending on

benefits. The Government said it welcomed people who contributed to

the economy, but it needed strict rules to ensure the benefits system

wasn't abused. The Department for Work and Pensions pointed out that

the number of foreign nationals claiming working age benefits has

risen by 100,000 over the past five years.

German authorities have confirmed that masterpieces by Picasso,

Chagall and Renoir are among the works of art found in a flat in

Munich that are believed to have been looted by the Nazis. 1,500

pieces were found, including some previously unknown works.

Not just modern gentleman art which Hitler deemed degenerate because it

was painted by Jewish artists but older works looted in occupied

country, particularly France. I am a specialist for modern art and of

course it is a very emotional thing to see that all these works of art

still exist, and were not destroyed. Only when this flat in Munich was

raided did this secret collection come to light.

The works had been hoarded by the son of a wartime art dealer. Experts

have been examining the artist tick treasures.

At a press conference tax and customs investigators said they

questioned the man who hoarded the paintings, but now they didn't know

where he was. They defended the delay in bringing

the matter to light. The investigators in this building

say it has taken so long because it is very complex, and detailed and

they want to be meticulous in order to find out who has a right to those

pictures. Any gallery in the world would want these pictures.

But the law in Germany makes it complicated for the descendants of

original owners to get the works back easily. The German

investigators are expecting claimants to get in touch.

The record breaking jump jockey Tony McCoy is two wins away from the

milestone of 4,000 winners, he has three rides booked today at Exeter,

the first one in less than half an hour, Tony McCoy total us he was

looking forward to the races later on. I have always been one that

liked to challenge myself, and so I think any landmark is, you know that

I have been lucky enough to achieve is something I have been proud of. I

never thought I would be able to get anywhere near 4,000 winner, but, as

I said hopefully in the next few days I will do.

Our sports correspondent is in Exeter for us now. What is the

prospects in Tony McCoy has been edging towards this landmark John.

Two winners yesterday, as you say, two more today at Exeter and he will

get to that magic 4,000 milestone, he looked relaxed when he arrived

here round about an hour ago and spoke to the media. He is a man who

has turned winning into a way of life over his 20 year career, he has

been champion jockey 18 time, he has won the Grand National in 2010, he

has been voted BBC Sports Personality of the Year, but this

would be arguably his greatest achievement yet. No other jump

jockey has won 3,000 race, yet alone 4,000. It won't be easy for him, he

has only three rides here, he need to web two of them but the fans here

are hoping for a moment of history. The first race is at 1.50. Thank

you. Let us get you up-to-date with the

weather. The weather is in an unsettled mood.

The weather shows signs of improving, yes, as the cloud that

brought the rain continues to clear out into the North Sea. To be

followed by speckled cloud, showers clouds. However, zooming further out

into the Atlantic, we are watching this next bump of cloud developing.

This is the next area of low pressure that will drive across the

Atlantic to bring more wet weather overnight tonight and into tomorrow.

At least the weather shows signs of improving today as the rain

continues to clear, few heavily showers are forecast, the showers

reasonably well scattered in Wales and south-west England, so it may

stay dry, often there will be a lot of cloud, so a few limited bright or

sunny spells. There should be some sunshine getting through, but fairly

slow to arrive. Meanwhile for Northern Ireland and Scotland we are

looking at heavy shower, and with the winds remaining light in

Scotland, a a cold night, there is nothing really to stir the cold air

that is sitting in the valley, low down in Scotland, from mixing, so

the temperatures will stay low. If you are off for bonfire celebrations

to celebrate that, there will be heavy showers in but the south-east

should stay fine and dry, but with a cold wind. The rest of the night,

the winds stay on the light side in eastern Scotland so here where the

clear skies it will be every bit as cold as last night with temperatures

plummeting to minus five or six. A frost-free night for most of us, by

dawn, lit become mild in the south-west, with temperatures of 15,

so another night where we will have a 20 degree temperature contrast,

north to south. En into Wednesday, outbreaks of

rain, there is still a little uncertainty about how far this line

of rain will get. At the moment we think it will push across Wales, the

Midland and East Anglia. To the north we have fresh air, a mixture

of sunny spells and blustery showers. On through Wednesday night

the rain band continues to slip away southwards, then we will start to

see the skies clearing. A chilly start across large swathes of the

country. Temperature wise, again we are into

double figures in the south. 14 in the Channel Islands but fresh

further north, with temperatures round seven or eight. You can check

the latest forecast where you live, there is more on the website.

And a reminder of our main story this lunchtime. The jury in the

phone hacking trial hears transcripts of Milly Dowler's voice

mails and how the messages were hacked after she went missing.