13/03/2014 BBC News at Six

Royal phone book. The paper's former Royal Editor said Diana was looking

for an ally in the press. Clive Goodman told the Old Bailey that

Diana leaked the information in 1992 to try to "take on" Prince Charles.

We'll be getting the latest from the Old Bailey. Also tonight, a one %

public sector pay rise. Unions react angrily at the below-inflation

increase. It is an absolute disgrace. Unfair

and disappointing and unreasonable. Big losses at Morrisons spark talk

of a price war as Britain's fourth biggest supermarket says it'll slash

prices. No debris and no clues, we report

from onboard a search plane as the hunt for the missing Malaysia

Airlines plane continues. And it became a symbol of the Somerset

floods, now that car is reunited with its owner.

And coming up in the sport, Cheltenham racecourse at CDE big

favourite beaten amid a farewell to one of the festival's favourites.

Good evening and welcome to the BBC News at Six. A former News of the

World journalist has told the Old Bailey Princess Diana gave him a

confidential royal phone book in 1992. Clive Goodman, the paper's

Royal Editor who was jailed for phone hacking, told the jury that

Diana was in 'a bitter situation with the Prince of Wales at the time

and was looking to take him on'. Our Home Affairs Correspondent, Tom

Symonds is at the Old Bailey for us now.

Tonight, another extraordinary revelation from this trial. A man

convicted of attacking the phones of members of the Royal household now

says that a very senior member of the Royal household pass him a

highly confidential documents. He says that it happened at the height

of the ill feeling between Prince Charles and Diana, Princess of

Wales. The jury will have to decide if it is true. The man who made the

claim is Clive Goodman. A familiar face in the long phone hacking saga.

He admitted doing that, at this very court in 2006. He went to prison.

Now he is accused of paying police officers at the Royal Palace for

internal phone directories. He denies it and today told the jury

that a 1992 directory came to him from a very different source. Diana,

Princess of Wales. He says that she wanted him to see the scale of her

husband's staff and household compare to the scale of hers. The

directories listed the names and numbers of staff. She felt she was

being swamped by the people close to him and she was looking for an ally

to take him on and sure the kind of forces against. She was, he says, in

a better situation. And it was a better time. The Prince and Princess

were shortly to separate and in public appearances, it showed. They

divorced in 1996. One year later, she was killed in a speeding car in

a Paris underpass. Of course, all of this was a huge story for the News

of the World. The court heard that the paper had had access to a series

of internal Palace phonebooks since at least 1986. They were regularly

used for checking stories, sometimes stories denied by the Palace. As a

result, the Royal editor's picture and byline regularly appeared in the

editor. Clive Goodman says that this phone book arrived in the News of

the World's mail and found its way into his pigeonhole. He said the

princess called him later to check it had arrived. It was one of a

dozen phonebooks that Clive Goodman is alleged to have had. He does not

deny having them or using them but he does deny paying police officers

to obtain them. Millions of public sector workers,

including civil servants, prison staff, military personnel and some

NHS staff, will get a below-inflation pay rise of one

percent from April this year. But the government is not giving an

across the board rise. And around 600,000 NHS staff who receive annual

rises in so-called "increments" won't get it. There are also changes

to how the government pays for public sector pensions with

individual departments picking up the bill. Some union members are

angry and there are some threats of strike action, as our Political

Correspondent Vicki Young reports. Like all family households,

Angela's bills stack up. She is a nurse on a busy hospital ward and

has just discovered she will not be getting the salary rise she was

expecting. She is angry about the announcement and says that staff are

totally undervalued. It is disappointing, upsetting, and it

does not make you want to get up out of bed and do a 12 and a half hour

shift. When you are not being sufficiently rewarded, it hurts.

Like Angela, more than half of NHS workers receive an incremental,

regular pay increase as they gain experience. The official advice to

ministers was that staff should get this plus a 1% salary rise. The

government says it has to be one or the other. I would dearly like to be

more generous. But not if it means, as it would if we accepted this Pay

Review Body recommendation, that we had to lay off around 6000 nurses.

And that is the risk we take. What nurses up and down the country say

to me when I'm on the front line is that they think is -- the single

thing that matters most is having enough people on the wards. What

about other public sector workers? Ministers have decided that members

of the Armed Forces, prison officers and judges should receive a 1% rise,

but for the rate of inflation. In recent months, we have been hearing

more positive news about the economy but ministers have remained

cautious, talking about a slow recovery. And today's announcement

is a sign that they have no intention of going on a spending

spree. Years of pay restraint are far from over. And that is

incubating unions, who say it will mean a further cut in living for

public sector workers. Some of them have already said they will consult

members over strike action. It shows complete contempt, not just for the

NHS workforce, but for the NHS. If you have a demotivated workforce,

that cannot be good for patient is. We feel that this really shows the

government in their true colours. We did not expect them to pick a fight

with the NHS before the general election but it looks like that is

what they are trying to do and if that is what they want, that is what

they will get. Wales and Northern Ireland are considering they pay

awards and in Scotland there will be more generous offer. But in England,

despite the action, government insists that reform of health pay is

essential. The Shadow Chancellor Ed Balls has

told the BBC that the government's decision to overrule the Pay Review

Body for public sector workers was unfair. He says a future Labour

government would scrap the married couples allowance and introduce a

10p tax rate instead. Five days before the budget our Political

Editor Nick Robinson has been talking to him about Labour's plans

and the challenges ahead. If we put two eggs in one side and

none in the other, what will happen? Lets see if it goes unbalanced. In a

little over a year, that could be the job of the man who wants to be

Chancellor. He insists he is tough enough to do it, tough enough to

back the government's decision to refuse a 1% pay rise to all NHS

staff? Saving ?200 million a year? That was a question I'd put to him

nature of the West Midlands. The government has spent ?3 billion on a

reorganisation of the NHS. They have given huge payoffs to senior

managers to leave the NHS and then today, when the independent Pay

Review Body recommends a 1% rise, lower than inflation, they are

reneging upon that, rejecting it, and actually therefore not giving a

pay rise to 600,000 lower paid NHS staff. Is this something you could

promise to reverse if you were Chancellor? We have said we will

have to work within the budgets that we inherit, and that will include

everything we inherit, including pay. So you cannot reverse it? Pay

would not go up by more than 1%? We will do things more fairly. Whoever

is in Number Ten will be grappling with huge numbers for borrowing,

deficit and debt after the election. The Institute of Fiscal Studies

tells me that you may need to find ?18 billion in cuts when you are

Chancellor. That is more than Margaret Thatcher, more than Denis

Healey in the 70s. It is that serious. We are going to inherit a

tougher situation than we needed to and that we want. Under any

government since the war. If we can get stronger growth, I hope we can

make this not as painful as the IFS is suggesting. But at the moment, it

is going to be very difficult. With the budget days away, the economy is

heating up nicely. This boiler factory is making much more than a

year ago. I showed Ed Balls a graph of growth forecasts for the next few

years. Not, I suggested, exactly what he had it. Thank goodness.

Finally we have growth. So this does not show that you were wrong? Not at

all. Growth was always going to come back. It has happened weaker and

later than it should have done because of, I believe, George

Osborne's serious mistakes. The coalition is looking at making

another tax cut for basic rate taxpayers. Ed Balls has other ideas.

What we should actually do is scrap the married couples allowance, which

is perverse and unfair, and use that money to give a tax cut for middle

and lower income families. We propose a 10p starting rate of

income tax my helping two thirds of married couples, women as well as

men. Labour's leaders are just beginning to think about life when

their ideas might actually become government policy.

You excited or terrified? Well, I am. Because it is going to be such a

task, with the deficit we will inherit. We have such challenges to

get the reforms that we need. Before that, of course, the electorate will

have to decide whether to give Mr bowls another chance to play with

the nation's train sets. Britain's fourth biggest

supermarket, Morrisons, has sparked talk of a supermarket price war

after reporting its lowest profit in five years. The retailer says it

will spend ?1 billion on price cuts over the next three years in a bid

to take on its rivals. The news caused shares to tumble by nearly

10% on the stock market. Our business correspondent Emma Simpson

reports. In the fast changing world of

supermarkets, Morrisons has been struggling to keep up. And today, it

plunged into the red, hit by some exceptional costs of nearly ?1

billion. Sales are falling and it is being squeezed. There are big

structural shifts going on in the market, some of the biggest changes

for two generations as people shop differently, online, inconvenience,

and now in discounters, which customers see as small supermarkets.

So what is Morrisons going to do about it? Today, it took a change in

direction, aggressively cutting prices. ?1 billion worth of the next

three years. There are going to be fewer products to make this business

Li Na and simpler. But it will also mean that Morrisons takes a huge hit

on its profits. Here is where it all began. When a young egg and butter

seller, William Morrison, opened his first shop in Bradford. A century

later, Morrisons has lost its way. Becoming a bit too posh and pricey,

it seems, for many of its core customers, who have ended up here.

The fast-growing discounters like this one are mirroring in shoppers,

even in Yorkshire, Morrisons' home turf. If something is right, you

will pay the price. No point paying the price for the sake of it. I

think these are the up-and-coming supermarkets. Morrisons prides

itself on fresh produce but it has lagged behind in the big growth

areas of convenience stores and online shopping. It has got its work

cut out. Companies go through cycles but at some point, they lose touch

with customers. Every ten or 15 years, you see customers going

through a reset, having to rethink their strategy. More Sims has now

press the reset button, a move that wiped billions of big UK supermarket

chains have -- shares. Six days after the Malaysia Airlines

jet vanished from the radar, there are still no clues about what

happened to it. The authorities now say Chinese satellite images,

thought to show some of the wreckage, were released by mistake

and didn't show debris after all. Forty three ships and forty aircraft

are searching these zones in the Malacca Straits and the South China

Sea, an area of 27,000 square miles. Rupert Wingfield-Hayes joined one

aircraft that left Kuala Lumpur for its search area over the Malacca

Straits near Penang. Today, I got to see for myself how

the Malaysia Air force is searching for flight MH370. For six hours, we

flew back and forth, a few hundred feet above the Straits of Malacca.

The endless blue water occasionally rocking by fishing boats but not a

single sign of any debris. At least not with the technology on board

this aircraft. We have six people looking out for things. We are

coordinating the visual search and we are assisted. This search, in

other words, is being carried out by people looking out of windows with

the naked eye. Today, we covered just 70 square miles out of 27,000

that need to be searched. This area of sea beneath us is actually

several hundred kph from the last known position of flight MH370. This

aircraft has been sent up to search this area today because of a strange

blip that appeared on military radar a few hours after the plane

disappeared. Of course, Malaysia military has to follow up every lead

it can, at six days in, it really feels like they are now grasping at

straws. In place of facts, the rumour mill swirls. From China today

came the satellite pictures, supposedly showing large chunks of

debris off the coast of Vietnam. Then a US report said that the

Rolls-Royce engines on the missing plane had continued to transmit data

for five hours after it disappeared. Malaysia's Transport Minister

swiftly stamped on both. The families of the missing are still

praying for a miracle. The stress of not knowing is agonising. They say

they are looking into it. We are seeking cooperation from

neighbouring countries. They are not concentrating and giving us a

precise answers we need to know. Many here are starting to accept

they are now praying for the dead. Our top story this evening. The

former Royal Editor of the News of the World has claimed in court that

Princess Diana gave him a confidential royal phone book in

1992. And still to come. A new report into a North Sea helicopter

crash in 2009 finds the accident could have been avoided.

A benefit or a burden? We look at the contribution made by immigrants

in the capital. And reaching for the skies, white towel blocks are on the

up in the capital. Russia has begun new military

exercises close to the border of Ukraine as the stand off between the

two countries continues. Around 8,500 Russian troops are involved

together with artillery and rocket launchers. It comes at a time of

high tension ahead of Crimea's referendum on Sunday on whether to

break away from Ukraine and join Russia. If that happens, it will be

the latest of many historic changes to Ukraine's borders in a troubled

past, as Our Diplomatic Correspondent Bridget Kendall has

been finding out at the British Library.

Momentous days in Ukraine shaken by turmoil, bloodshed and division. And

passions are being fired by history as the old maps in the British

Library's collection reveal. Let's start with Crimea. Now the focus on

flash point of this crisis. Threatening to loosen ties with Kiev

or even return to Russian rule if the pro-Moscow Russian speakers they

get their way. And here it is, a tiny peninsula in the Black Sea,

just below modern Russia and modern Ukraine. In the 18th century, it was

part of the Ottoman Turkish Empire ruled by the Kahn of the Crimean

Tartars. Until, as in this map, Russia's Catherine the Great annexed

it and made it part of the Russian Empire. And there it stayed, part of

Russia, until 1954 when the Soviet leader Khrushchev decided to give it

to Ukraine as a gift. That didn't matter too much when it was all part

of Soviet territory. But then, in 1991, the Soviet Union collapsed and

Russia and Ukraine found they were separate countries with Crimea still

part of Ukraine. As for the main part of Ukraine, it's always been

pulled two ways. The West stays tied to West for good reason. Take Lviv,

as is called today, in the far west of Ukraine. In 1775, it was called

Lindberg, and was part of the Austrian Empire. In 1940, now part

of Poland, it came under Soviet rule, part of a carve up, secret

deal between Hitler and Stalin. Some Ukrainian nationalists saw Stalin as

a bigger enemy than Hitler. That's why there's still so much suspicion

of Moscow, the old occupying power. And that's why we keep hearing

President Putin warning of the threat from right- wing extremists

in western Ukraine. Old fears and mistrust, still shaping attitudes

today. The further east you go in Ukraine, the more people see Russia

not as an enemy but as part of the family. Look at this beautiful

18th-century map. Russian lands extend all the way to Kiev. The

other side of Poland. And Kiev is where the Russian state began and

the Russian Orthodox Church over 1,000 years ago. It's almost sacred.

That's why President Putin doesn't want to let it go.

David Cameron has urged the leaders of Israel and the Palestinian

authorities to be partners for peace. On the second day of his

visit to the Middle East, he held talks with Palestinian President. He

also met the former Prime Minister Tony Blair, who was a peace envoy in

the region. Mr Cameron is keen to rekindle the Middle East peace

process. The families of 16 men who died in a North Sea helicopter crash

in 2009 have called for the aircraft's operator to be

prosecuted. A new report found the accident could possibly have been

avoided, if there had been more effective maintenance. Relatives say

they also want a full public inquiry. Our Scotland Correspondent

Lorna Gordon has been talking to the family of one of the victims. It was

a routine journey with a tragic end. The sombre side of a helicopter

wreckage returning is now half a decade old but for the 16 families

left grieving, the memories are still raw. Warren Mitchell left

behind a wife and four children. He worked all over the world but he

lost his life in the waters close to home. He was just a family man. He

would always want to do something with us. That was his main priority,

coming home and doing stuff with my mum and all us kids. He is sorely

missed. Do you take comfort from today? No, not at all. The

helicopter carrying them was just 20 minutes from landing here when it

plummeted into the sea. This latest enquiry says their deaths could

possibly have been prevented if proper maintenance procedures had

been followed. The helicopter operator says lessons have been

learned but that no other action is needed. We don't think a criminal

enquiry is necessary. Mistakes were learned that there is no evidence

whatsoever of criminal action having taken place at any stage of the

process prior to the accident itself, so, we wouldn't feel it was

necessary. However, criminal investigation is exactly what the

families want. To come out today in a statement and say they hope is a

broad closure to the families, I just find that disgusting. There's

never going to be closure for us. The rest of our lives are ruined. 16

men were killed, 16 families lives have also been ruined. A mother and

daughter drawing comfort from each other, but the Mitchells and the

other families of those who died are still waiting for answers. They

still have no closure. In South Africa, the judge in the trial of

Oscar Pistorius has been shown pictures of bloods stains found on

the floor, walls and stairs of the athlete's house on the night he shot

his girlfriend. Mr Pistorius appeared to retch in court after

photos of Reeva Steenkamp's body were briefly shown by accident.

Photographs of the gun he used were also shown. Mr Pistorius denies

murder, saying he shot his girlfriend in February last year

after mistaking her for an intruder. A service was held in Westminster

Abbey to celebrate the life and work of Sir David Frost. Prince Charles

with us to the corner were among 2000 people paying tribute to the

broadcaster who died in August aged 74. The former Manchester United

footballer Eric Cantona has been arrested and cautioned for common

assault. Cantona, who has made a new career as an actor, was placed in

custody and later received a caution from police. The incident took place

in Camden in North London at lunchtime and the male victim did

not require medical attention. It became a symbol of the recent

Somerset floods. A car submerged under several feet of water

abandoned on a road leading to the village of Muchelney, which was cut

off for months by the floodwater. And no-one knew who owned until our

correspondent Jon Kay managed to track down the owner and reunite him

with his saturated vehicle. Finally visible after weeks under water. But

who does this abandoned car belong to? In January, it became an

unlikely icon of the Somerset floods. Filmed and photographed by

media from all over the world. That was a car. It shows you how deep the

water is here. There you go. There is your car.

Wow! The owner is 21-year- old Hubert, an apprentice engineer

originally from Poland. Amazing. You're not going to be driving at

home. I don't think so. He escaped from the car on Christmas Eve, as

the water suddenly rose. Now he's going to have to share it with the

new occupants, once he's found his keys, that is. ?? CYAN I think they

fell down I think they fell down here

somewhere. Disgusting. He bought the car two years ago for ?600. His

pride and joy now a write- off. Well, there's some of my insurance

documents, covered in... Loads of stuff. As you can see. So, what did

he think when his flooded car became a superstar? Shocking, actually. I

wasn't expecting my car to be on telly and eventually to be on

international news, in the newspapers. Everyone is pretty much

talking about it. Time for Hubert to get a tow from an amphibious

military craft. No time for a coffee break.

Next stop, a scrap yard or even a motor museum, where the car from the

Somerset floods can finally rust in peace.

Let's hope all that rain is behind us. Time now for a look at the

weather. I'm optimistic about the weekend but

we are not there yet. The fog is already reforming around coastal

areas right now but watch out creeps inland and becomes widespread

through tonight like the last few nights. Nasty patches across England

and Wales primarily. A different story in northern Scotland. Not so

cold here but further south could see a touch of frost and some rule

spots. Let's concentrate on the fog because tomorrow morning, gain it

could be quite nasty. Allow extra time across England and Wales. Some

dense patches and it could last right the way through the rush hour.

If you are on the move tomorrow morning, be aware that could be some

disruption. Check out your BBC local radio station before you set off.

The fog will shrink away and a reasonable day for many of us. Away

from the western half of Scotland where it will be windy, wetter,

particular across the far north. Dribs and drabs on western coast,

but if you're going to Cheltenham, it should left, but limited

brightness. It should be dry and bright. Low cloud towards western

coasts of England and Wales. The fog should left, though. The sun should

come out in eastern areas and temperatures could be high teens.

Very nice. Further north, more cloud west of the, south-west Scotland,

Northern Ireland. The heavy stuff will be along the Highlands, where

it will be particularly windy tomorrow afternoon. A good old gale

blowing in exposed places. For the weekend, largely dry, rain around in

the north-western areas, but most of us will be dry at times with

sunshine further south. It will be tempered to some extent by blustery

wind. A reminder of our main story. The

former Royal Editor of the News of the World has claimed in court that

Princess Diana gave him a confidential royal phone book in the

early 1990s. That's all from the BBC News at Six. It's goodbye from me.

On BBC One we now join