Richard O'Dwyer Pays £20,000 Over Pirate Site

A student who ran a website where users could stream pirated films has "avoided a conviction" after paying £20,000 to US authorities, his lawyer has revealed.

Richard O'Dwyer, from Sheffield, ran the TVShack website hosting links to pirated films and TV programmes.

But after a court hearing in New York, the 24-year-old avoided extradition and conviction by signing a Deferred Prosecution Agreement.

As a result, he had to pay £20,000 to the authorities, representing the profits he made from TVShack between December 2007 and November 2009.

The money will be distributed among victims whose copyrights were infringed by TVShack.

Mr O'Dwyer's lawyer, Ben Cooper, said it was "a first" in extradition cases.

Mr O'Dwyer's mother complained of 'a sledgehammer to crack a nut'

"He has avoided extradition and will avoid a conviction. The solution reached is pragmatic and allows Richard to finish his final year at university and get on with his studies at a crucial time in his life.

"So far as we know this is a first in extradition cases - and a sensible solution for UK defendants faced with an ever-growing extra-territorial reach of US prosecutions.

"I expect this mechanism will be used by UK defendants in future US extradition cases now the precedent has been established."

Under the agreement, Mr O'Dwyer must also not break any US laws, "associate only with law abiding people" and work regularly in a lawful occupation.

His mother, Julia O'Dwyer, said "We would like to thank the prosecutors who have been willing to engage in dialogue and recognise that this conduct did not merit the extradition, incarceration and criminalisation of my son.

"However, had anyone communicated with us directly from the outset, raising their concerns, this matter could have been dealt with over two years ago without the threat of extradition, which in my view is using a sledgehammer to crack a nut.

"Sadly, the UK government was happy to allow Richard's extradition to proceed, just like they have with others similarly accused of conduct in Britain, committed without ever setting foot in the US.

"The Government is using a rotten law which was designed to bring fugitive offenders back to the place where a crime was committed, not for outsourcing our criminal justice system to another jurisdiction."

Earlier this year Home Secretary Theresa May approved Mr O'Dwyer's extradition, which he appealed against.

On November 28 a deal was struck at the High Court in London to avoid him being extradited and led to him signing the three-page deferred prosecution agreement.

The Sheffield Hallam university student could have faced jail if convicted of the allegations, which were brought following a crackdown by the US Immigration and Customs Enforcement agency.

The agency claimed the TVShack.net website earned more than £147,000 ($230,000) in advertising revenue before US authorities obtained a warrant and seized the domain name in June 2010.

It is thought Mr O'Dwyer will return to the UK with his family today.

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Bomb Found Before Clinton's N Ireland Visit

By David Blevins, Ireland Correspondent

A bomb has been discovered in a car in Londonderry just hours before US Secretary of State Hillary Clinton is due to visit Northern Ireland.

The "viable explosive device" was discovered after officers investigating dissident republican activity stopped the vehicle in the Creggan area on Thursday evening, police said.

Two men aged 47 and 49 were arrested at the scene at about 8.40pm. Two others, also in their 40s, were detained later.

Mrs Clinton is making a nostalgic return to Northern Ireland but with tension running high over flags, the peace that she and President Clinton helped to build remains far from perfect.

A vote to limit the flying of the Union flag over Belfast City Hall has sparked several days of loyalist protests, some violent. 

Armagh's Mayor Sharon Haughey, then 14, with President Clinton in 1995

The civil unrest has been threatening to overshadow Mrs Clinton's visit.

Gavin Robinson, Lord Mayor of Belfast, said: "The US Secretary of State will be no stranger to some of these issues. 

"She's been here in much more difficult times in Northern Ireland and I'm sure she will welcome and mark the progress that has been made and the collective political willingness that we'll not go back to the bad old days of the past."

It was 1995 when the Clintons paid their first historic visit to Northern Ireland. Thousands turned out to greet them and to herald the dawn of the peace process here.

Teenager Sharon Haughey, who had written a letter about 'The Troubles' to the White House, welcomed them to Armagh. She's now the city's Lord Mayor and gives them the credit.

Mrs Clinton has already visited Dublin and met children at the US embassy

"The Clintons have played a very important role in the pathway that I have chosen in my life," she said. "They gave me a platform as a very ordinary 14-year-old schoolgirl. 

"They gave me an extraordinary opportunity and I decided to use that opportunity to help shape that future that I wanted and that's really why I'm here today."

The US Secretary of State will attend an American Ireland lunch at Titanic Belfast after a meeting Northern Ireland's First Minister Peter Robinson and Deputy First Minister Martin McGuinness.

Mr Robinson has urged loyalists to suspend their protests over the flag issue. "Those who riot and engage in violence do a disservice to the flag they claim to represent," he said.

His statement followed attacks on the homes and offices of politicians belonging to the neutral Alliance Party, which had encouraged a compromise - the flying of the flag on designated days.

Syria topped the agenda when the US Secretary of State visited Dublin during her trip. 

Regardless of recent setbacks, she'll be keen to celebrate whatever kind of peace she finds in Belfast.

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Bank Staff 'Under Pressure To Sell', Which? Says

Staff at Britain's largest banks remain under pressure to sell products to customers, often regardless of whether they are appropriate, an investigation claims.

Two thirds of bank staff with a sales role said there is now "more pressure than ever" to meet their targets, according to a Which? survey of front line bank employees.

Almost half of the 500 people interviewed said they knew colleagues who had mis-sold products to meet their targets, and 40% reported that they are encouraged to sell even when it is not appropriate.

Which? interviewed branch and call-centre staff from HSBC, Royal Bank of Scotland, Lloyds Banking Group, Barclays and Santander, and found that even when incentives are removed, the practice prevails.

Although over 40% said incentives for sales have decreased, more than 80% said the pressure to meet sales targets has stayed the same or increased.

The research comes despite a string of mis-selling scandals over recent years, knocking customers' trust in UK banks.

The PPI mis-selling scandal has cost the big banks £10bn to date

The most high-profile - the mis-selling of payment protection insurance - has already cost the big banks more than £10bn in compensation claims, with that bill expected to rise.

Of the staff surveyed, over a third said they are not comfortable with the pressure they are under to sell products, and two thirds added that they are sometimes or always ordered to sell more.

Which? chief executive Peter Vicary-Smith called for "big change" across the banking industry, with customers - not sales - put first.

"Our survey reveals the stark realities of the sales culture that still exists at the heart of the banking industry," he said.

"Senior bankers say the culture is changing but this shows it just isn't filtering through to staff on the front line who remain under real pressure to put sales before service, even after incentives are taken away.

"We're calling on the banks to be much more transparent about their sales targets and incentives.

"We also want to see bankers meet professional standards and comply with a fully independent code of conduct."

A spokesman for the British Bankers' Association (BBA) said that any incentives for front line staff are now based on clear criteria related to customer service.

"Selling people products they do not need is not putting the customer's interests first and therefore is ultimately bad for the bank," he said.

"The banks will be looking at the findings of this small survey - along with their own internal research - to understand why any staff might feel otherwise."

Which? said it will provide a collection of evidence on the banking industry to the Parliamentary Commission on Banking Standards, the Government and opposition MPs, and the Financial Standards Authority (FSA).

Barclays and the Co-operative bank have already announced plans to refocus their incentives schemes on customer service.

A spokeswoman for Barclays said: "From this week all Barclays UK front line staff are rewarded solely on customer service.

"This follows our announcement in October which was welcomed by Which?"

An HSBC statement said the bank encourages its employees to act "with integrity in the best interest of our customers".

"No one in the UK retail bank, not just customer facing staff, can earn a bonus without meeting the bank's values and behaviours criteria," it said.

And a spokeswoman for RBS said that its staff are rewarded on the basis of customer service and the performance of their branch overall.

"This is part of our move to make sure that customer service is the top priority for all of our staff," she added.

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Stuart Hall Charged With Three Indecent Assaults

BBC broadcaster Stuart Hall has been charged with three counts of indecent assault against young girls aged between eight and 17.

Complaints about the 82-year-old Radio 5 Live football presenter have been made to Lancashire police about alleged incidents in the 1970s and 1980s.

Hall has worked for more than a half century in British broadcasting and was awarded an OBE in this year's New Years Honours. He also presented the It's A Knockout show in the 1970s.

John Dilworth, of the Crown Prosecution Service, said the charges are that between September 1, 1974, and December 31, 1974, he indecently assaulted a woman who was then aged 16 or 17 years.

Between January 1, 1983, and December 31, 1983, he is accused of indecently assaulting a girl then aged eight or nine years and between July 1, 1984, and September 27, 1984, he allegedly indecently assaulted a girl then aged 13 years.

Mr Dilworth added: "He has been bailed to appear at Preston Magistrates' Court on January 7, 2013.

"This decision is made in accordance with the Code for Crown Prosecutors and I have concluded that there is sufficient evidence for a realistic prospect of conviction and that it is in the public interest to prosecute this case."

Hall was arrested at his home in Wilmslow, Cheshire, on Wednesday morning.

The BBC has said that he will not be working for them while police continue with their inquiries.

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Sex Offences: Tougher Sentences To Be Imposed

By Mark White, Home Affairs Correspondent

Judges will be urged to consider the psychological and long-term damage to victims of sex offences when passing sentence on perpetrators under new sentencing guidelines.

The new proposals, which will go out to public consultation, will also ensure the judiciary takes into account other aggravating factors, such as filming or photographing sex attacks.

They would see sentences brought up to date with advances in the technology and tactics used by offenders.

A tougher maximum sentence of 19 years should be given for "one-off" rapes, a limit currently only available for those who attack the same victim over a course of time or rape multiple victims, the guidelines state.

Mother-of-two Gabrielle Browne was attacked by a serial sex offender in 2003, when she was out running in preparation for the London Marathon.

In the years since she has devoted much of her energies to fighting for victims' rights within the judicial system.

Particularly when it comes to sentencing, she believes victims' voices are often lost in the process.

She told Sky News that in her case, her attacker could have been stopped before he targeted her, had a judge handed down a custodial sentence for crimes he committed against other women.

"One of the most shocking and disappointing revelations in the lead up to court was when I found out that only six months earlier he had attacked six women in the same park," she said.

"Some of those women were out with their children. For those six offences he received a community supervision order."

The changes are designed to make sure paedophiles, people-traffickers and rapists who operate alone or in gangs are dealt with better in courts in England and Wales.

Sentencing Council member Lord Justice Treacy said: "We're improving guidance for courts to help them deal with these incredibly complex, sensitive and serious offences.

"The perspective of victims is central to the council's considerations. We want to ensure sentences reflect everything the victim has been through and what the offender has done.

"We are looking at the whole context, not just the physical offence but also the tactics employed by offenders like grooming activity, the targeting of vulnerable victims or abuse of a position of trust."

Judges are asked to take into account factors such as stalking and previous abuse by offenders, and the targeting of vulnerable victims like those in care.

The council said the review of the guidelines had come about because the nature of offending has changed and in some cases of sexual exploitation and child grooming perpetrators use technology in offences involving indecent images of children.

"The guidelines reflect these developments so they cover the ways these crimes are committed today," the council said.

For rape, the new guidelines are designed take a broader approach covering a range of scenarios, and to recognise not just the stereotypical "stranger rapes" but to take into account that most rapes are carried out by someone the victim knows, and that many occur within families.

The council said the current guidelines for sexual assault take "too narrow an approach", and focus too much on the nature of the physical activity done by the offender.

It called for fear and intimidation to be taken into account, so an offence would be more serious if violence was threatened or threatening or violent sexual language was used.

For child sex offences the council said it wanted to increase the focus on the behaviour of offenders, how children may have been groomed or exploited, and whether offenders abused a position of trust.

It also said factors such as the use of alcohol or drugs to facilitate the offence and the use of gifts or bribes to coerce a victim should be taken into account.

The guidelines say paedophiles operating in rings or those who abuse a position of trust to create images or videos should be given tougher sentences and called for changes in the way images are classified to aid investigators.

Although Gabrielle Browne welcomes the proposed changes, she believes judges will not be fully armed with all the information necessary to pass sentence until victim impact statements become an everyday part of sentencing.

She said: "When that becomes a routine part of the court process and a routine part of the judge's papers that he considers before passing sentence there is a much greater likelihood that there will be more uniformity in sentencing and taking a victim's views into account."

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Virgin Trains Holds On To West Coast Line

Virgin Trains says it has reached an agreement to operate services on the West Coast Main Line for the next 23 months.

It comes after an embarrassing U-turn by the Department for Transport (DfT), which admitted it got its sums wrong after initially awarding the franchise to rival FirstGroup.

Sir Richard Branson, the founder of Virgin, described the bidding process as "insane" and mounted a legal challenge to the decision.

Transport Secretary Patrick McLoughlin said: "We are determined to ensure not only that passengers continue to experience the same levels of service they have in the past, but that services improve.

"There will be a new hourly service linking Glasgow and London and we will also work with Virgin Trains to explore other service improvements."

Virgin said there will be up to 28,000 more seats each day on the line because of the delivery of 106 new Pendolino carriages.

Its temporary deal will run from December 9 until November 9 2014, after which the West Coast line will be let under a long-term franchise.

DfT will be able to cut the 23-month period short "by up to six months if a subsequent franchise can be let on a shorter timescale", the Government added.

Three DfT officials were suspended after the bidding process was scrapped and Virgin was expected to be given the go-ahead to run the line for between nine and 13 months.

The new deal will see Virgin run the line on a temporary basis for far longer but does not involve an interim franchise as all existing bid processes were suspended pending the findings of an independent inquiry into the franchise system ordered by Mr McLoughlin.

The investigation, led by Centrica chief executive Sam Laidlaw, produced damning initial findings which listed a string of failings by the DfT.

The publication of the full report, expected later on Thursday, was delayed after one of the suspended department officials, Kate Mingay, mounted a legal challenge to her suspension.

More follows...

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EuroMillions Jackpot Winner Still Unknown

Top 10 National Lottery Winners

Updated: 7:29am UK, Wednesday 05 December 2012

1. Colin and Chris Weir: £161,653,000

The Scottish husband and wife said they were "tickled pink" after becoming Europe's biggest lottery winners in July 2011. The couple have reportedly bought a fleet of cars for friends since their win, as well as a mansion.

2. Adrian and Gillian Bayford: £148,656,000

The couple, from Suffolk, decided to go public after scooping nearly £150m on the EuroMillions August 10 draw.

Mr Bayford said he would carry on running his music shop in Haverhill. Mrs Bayford, a children's ward healthcare assistant at Addenbrooke's Hospital in Cambridge, said she would treat herself to her dream car, an Audi Q7.

3. Anonymous: £113,019,926

One British ticket scooped the massive prize on October 2010 but decided not to go public.

4. Dave and Angela Dawes: £101,203,600

The Cambridgeshire husband and wife hit the EuroMillions jackpot in October last year. It was only the third time the couple had played the lottery.

5. Anonymous: £84,451,320

The haul was won in May 2010 but the winner kept their identity secret.

6. Nigel Page: £56,008,113

Self-confessed white van man Nigel Page took home the win in February 2010. The skydiving enthusiast, who lived in a three-bedroom semi near Cirencester, Wiltshire, married his girlfriend Justine and moved into a mansion in the Cotswolds.

7. Anonymous: £46,432,285

A British ticket scooped the massive prize in February this year but also decided not to go public.

8. Les and Sam Scadding: £45,570,835

Unemployed mechanic Les Scadding and his wife Sam from South Wales bought one of two winning tickets which shared a £90m jackpot in November 2009. The other £45m-winning ticket was bought by a syndicate of seven office workers based in Merseyside. They each banked £6.5m.

9. Cassey Carrington: £45,160,170

The 22-year-old from Nottingham banked the staggering total after matching all five numbers and two Lucky Stars in a EuroMillions draw in February this year. The Iceland store supervisor said she planned to marry painter fiancee Matt Topham this September.

10. Gareth and Catherine Bull: £40,627,241

The Mansfield husband and wife scooped the bumper prize in January this year. Mr Bull, a self-employed builder, said he planned to splash out on an executive box at Manchester United and a new carpet.

His wife said she might go back to her job as a health insurance worker. The couple also said they planned to take their two sons, aged nine and 10, to Florida's Disneyland.

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Premature Babies: Dilemma Over Care Grows

By Thomas Moore, Health Correspondent

Better medical care is improving the survival chances of premature babies but failing to reduce the number suffering from lifelong health problems, according to new research.

Doctors studying extremely preterm babies - those born before the 26th week of pregnancy - warn "little progress has been made" in reducing serious long-term problems.

They say the children are a "significant public health issue" because of the increased workload for health, educational and social services.

Professor Neil Marlow, a neonatal care specialist at University College London Hospitals, told Sky News: "Intensive care for small babies is expensive, and providing care for children with disabilities as they grow up is also expensive.

"Although the number of babies in relation to the general population is relatively small, they have a very high need."

Researchers behind the long-running EPICure study compared premature babies born in 2006 with those born in 1995.

They found there had been a 44% increase in the number of extremely premature babies being admitted to neonatal intensive care, reflecting increasing optimism by doctors.

Survival increased from 40% to 53% over the decade, according to results published on bmj.com.

But in 1995, 41% left hospital with a major disability such as chronic lung disease, brain damage or serious eye problems, and there has been no improvement since.

In the Netherlands doctors do not attempt to save very premature babies - they argue that it causes more suffering, with little prospect of a successful outcome.

But Professor Andrew Shennan, medical advisor to Tommy's - a charity which funds research into premature birth, miscarriage and stillbirth - said doctors must do their best.

"Doctors who deal with these babies soon after birth have to make very careful decisions not to over-strive to maintain life at all costs. And I don't think that has changed.

"It is disappointing that disability remains a problem and isn't getting better and we need to look at why that is the case."

Nadia and Rosa Connelly were both premature. Nadia was 15 weeks early and her mum Sarah was told she had a 50% chance of survival. She says doctors were right to give her a chance.

"You don't know what is going to happen," she said.

"I was told she would have a severe mental or physical disability and she doesn't.

"So I dont think it is so clear cut. You can't say we are not going to treat this child."

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Autumn Statement: Osborne Tightens The Screw

Chancellor George Osborne will today warn there are no "miracle cures" as he admits more drastic action is needed to balance Britain's books.

Mr Osborne will confirm in a bleak mini-budget that Whitehall departments are being ordered to find another £5bn in cuts to fund projects aimed at kick-starting the economy.

He is also widely expected to concede that sluggish growth means it will take longer to tackle the deficit and that his key target of having public sector debt falling by 2015-16 may be missed.

Other key measures could include postponing the 3p fuel duty hike due in January, more benefits cuts, a fresh hit on the banks and a raid on the pension pots of higher earners.

The Chancellor's hands are largely tied because of weaker than expected economic growth and high borrowing, which have forced him to extend austerity well beyond 2015.

He has been battling to regain the upper hand since his Budget in March, which was heavily-criticised and led to a string of damaging U-turns over taxes on pasties, caravans and charitable donations.

Delivering his Autumn Statement this afternoon, he will argue that he is "confronting the country's problems, instead of ducking them" as he still seeks to show "we're all in this together".

"The public know that there are no miracle cures. Just the hard work of dealing with our deficit and ensuring Britain wins the global race," he will say.

Mr Osborne will confirm plans to use fresh cuts to fund capital projects in transport, schools, science and skills over the next two years.

They will include £1bn to build or expand up to 100 new academies and free schools over the next two years, with cash directed at areas experiencing a shortage in classroom places.

Departments will be forced to slash spending by 1% in 2013-14 and 2% the following year but health, schools, international aid, HM Revenue and Customs and nuclear decommissioning will be protected.

Treasury sources said the departmental savings amounted to less than the £3bn underspend by departments in the last two years and that the rest was coming from existing budgets.

But Labour claimed the move amounted to an admission that the reduction in infrastructure spending since 2010 had been "a catastrophic mistake" and weakened the economy.

The Chancellor is also expected to target the pension pots of higher earners by slashing the amount of annual tax relief earned on pension contributions from £50,000-a-year to £30,000.

Implementing the full cut could raise as much as £1.8bn for the Government.

A crackdown on people and businesses avoiding or evading tax is also likely, with a £77m boost for HM Revenue and Customs to track down those not paying their fair share.

Further plans to signal approval for up to 30 new gas-powered electricity power stations have already sparked controversy.

Mr Osborne will also float possible tax breaks and regulatory reforms to encourage investment in innovative "fracking" technologies for extracting gas from shale deposits.

• Follow Sky's live coverage of the Autumn Statement on Wednesday
•  9am-10am: Jeff Randall
•  10am-5pm: Dermot Murnaghan
•  5pm-7pm:   Live at Five

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Belfast City Hall Protest Injures Police

Five police have been injured as loyalists rioted in Belfast city centre after a controversial vote on the Union flag.

The violence spread to parts of east Belfast on Monday night where loyalists who had earlier tried to smash their way into the grounds of City Hall attacked a Catholic church.

A police spokeswoman said reinforcements had to be called in to deal with hundreds of loyalists throwing missiles, including fireworks, bricks and bottles.

Five police officers, including two women, were injured during the disturbances.

A Police Service of Northern Ireland (PSNI) spokeswoman said: "Five police officers have been injured, two of whom have been hospitalised. Two security staff of Belfast City Hall have also been injured."

It is understood a press photographer was also taken to hospital for treatment for hand and facial injuries.

Two female officers were taken to hospital

Trouble broke out minutes after Belfast city councillors voted to remove the flag from City Hall.

It is the first time the Union flag has been taken down from the Edwardian building since it opened in 1906.

Councillors agreed by 29 votes to 21 to bring City Hall into line with Stormont and other Government buildings and fly the flag on 17 designated days.

Sinn Fein Policing Board member Gerry Kelly said the PSNI had serious questions to answer about their operation.

Loyalist protestors carrying Union flags block the back of City Hall

He said: "I have to say, and I don't use these words unless I really mean them, it was a disgraceful police operation - or lack of a police operation.

"If that had been 1,000 or more republicans out there ... they would not have left it that they were able to come into the back of City Hall.

"They indiscriminately attacked cars. We are very, very lucky that they didn't get into the building or we could have been dealing with a lot more injuries."

Cars belonging to elected members and council staff were damaged during the disorder.

DUP councillor Christopher Stalford condemned those responsible for violence.

He said: "The violence has distracted from the issue we should be focusing on - the parties in Belfast City Council who have voted as a block to strip the City Hall of its flag."

The Union flag will now be flown on 17 designated days

Northern Ireland Justice Minister David Ford said: "The violence which took place at the City Hall and round St Matthew's Church was the responsibility of two groups of people.

"The first is those who went to the City Hall spoiling for a fight, who attacked police officers and council staff.

"But there is a second group which bears responsibility. DUP and UUP politicians fomented this protest, with both leaflets and the use of social media. They called people on to the streets.

"They must have known, from experience as recent as this summer, that violence was almost inevitable. They cannot avoid their responsibility.

"Such violence should be condemned by all civic and community leaders."

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Andrew Parsons Charged Over Wife's Death

A man has been charged with murdering his American beauty therapist wife at their home in Oxfordshire.

Andrew Parsons, 38, will appear at Oxford Magistrates Court, accused of killing his wife Janee in Lucerne Avenue, Bicester.

Mrs Parsons, 31, was found by police after they were called to her detached home on Saturday.

Despite attempts by officers and ambulance staff to resuscitate her, she was declared dead at hospital.

A post-mortem examination found that the mother-of-two died from multiple stab wounds, police said.

Detective Chief Inspector Joe Kidman, who is leading the investigation, said: "We are are keen to speak with anyone in Lucerne Avenue who may have important information to help us establish the circumstances of this tragic incident."

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Leveson: Editors Make Case On Regulation

Leveson Inquiry: The Options For Reform

Updated: 1:35am UK, Thursday 29 November 2012

Lord Justice Leveson's recommendations could radically change the way media organisations operate in the UK.

He has said he wants an independent body that could provide redress and a swift mechanism to resolve privacy and libel cases.

Those who complain of press harassment want a system that tackles invasions of privacy, inaccuracies and the culture that resulted in the phone hacking scandal.

But journalists and editors warn that freedom of expression will be threatened if a regulator with wide-ranging powers is set up.

Here are some of the options.

:: A "PCC-plus"

Lord Justice Leveson could call for a beefed-up Press Complaints Commission (PCC), with extra powers and resources to carry out inquiries and hand out punishments.

The general consensus is that the PCC's code of practice is a good foundation but many want it to have more power, amid criticism it has been "toothless".

Lord Black, chairman of the funding body for the PCC, has recommended a new body with the power to launch investigations and levy fines of up to £1m.

Current PCC chairman Lord Hunt of Wirral proposed turning the body into a true regulator of newspapers, with separate arms for dealing with complaints and enforcing standards.

A possible third arm could have the powers to mediate in disputes with newspapers and award compensation.

:: A PCC replacement combining self-regulation with a statutory framework

Lord Justice Leveson has stressed that he does not believe in the "binary" distinction between statutory regulation and self-regulation.

It has been suggested that a law should be passed forcing newspapers to sign up to the PCC or its successor.

Comments by the chairman during the hearings indicate he might be leaning towards the creation of an independent regulator backed by statutory powers.

These could include the ability to impose fines and insist on the prominence of corrections in papers, and a requirement to offer a "right to reply" to contentious articles.

:: Full statutory regulation

Some witnesses suggested the press should be subject to a much stricter regime, in the same way broadcasters are subject to watchdog Ofcom.

Ofcom has wide-ranging powers to investigate and penalise breaches of its detailed code - which includes strict clauses on impartiality and privacy - in TV and radio programmes.

Guardian journalists Nick Davies and David Leigh said they felt some newspapers are not capable of regulating themselves but statutory regulation was widely rejected as an option, especially by editors.

Lord Black, chairman of the Press Standards Board of Finance, suggested any form of statutory intervention would struggle to cope with the pace of change.

There is also the question of cost. Ofcom carries out many other roles, but its 2011/12 budget of £115.8m dwarfs the £2m annual bill for the PCC.

Lord Justice Leveson has repeatedly stressed that he does not support the licensing of journalists or newspapers by the state, and this option looks unlikely.

:: An arbitration service outside the court system

Media groups repeatedly complained about the huge cost of defending libel claims brought in the civil courts, and the chilling effect this has on serious journalism in the public interest.

Editors say "no-win, no-fee" arrangements mean they face potentially ruinous legal costs if they fight an action and lose.

On the other hand, the cost of bringing a claim can be too great for ordinary people, rendering them helpless.

Lord Justice Leveson has spoken of the merits of "a speedier, effective and sensible mechanism for all to use and for all to take the advantage of".

NUJ general secretary Michelle Stanistreet suggested a successor to the PCC could offer a mediation service dealing with libel and privacy.

Nick Davies called for the formation of an independent panel to give journalists and members of the public confidential advice on whether a story is in the public interest.

Guardian editor Alan Rusbridger argued for a Press Standards and Mediations Commission with an adjudication wing, so people would not have to go to the law to address any differences with newspapers.

:: A newspaper industry ombudsman

Press regulation could be split between the PCC, dealing with day-to-day complaints, and an ombudsman with wider powers to investigate and punish.

Daily Mail editor Paul Dacre argued for a new self-regulatory body, standing alongside the PCC, to deal with standards.

He suggested the ombudsman, perhaps a retired judge or civil servant advised by former newspaper editors, could launch his or her own inquiry into potential scandals, summon journalists and editors to give evidence, and impose fines in the most serious cases.

Lord Justice Leveson is said to have looked to Ireland's press watchdog as a possible two-tier model for a new system.

The Press Council of Ireland and the Press Ombudsman were set up as a two-pronged approach to media regulation in 2008, as an alternative to costly court battles.

The Press Ombudsman deals free-of-charge with complaints from the public, considers whether they are valid, then acts to resolve them through conciliation.

Where conciliation is not possible, the ombudsman makes a decision based on the Code of Practice for Newspapers and Magazines.

He has the option of referring "significant or complex complaints" directly to the 13-member strong Press Council, drawn from the public and the media industry, for decision.

:: A new privacy law

Britain already has statutes protecting privacy through its adoption of the European Convention on Human Rights, article 8 of which covers the "right to respect for private and family life".

But critics argue this has been left open to interpretation by judges, who have in recent years tended to side with celebrities whose personal peccadilloes have been aired in newspapers.

Some witnesses called for the UK to adopt a strong law protecting personal privacy as in France.

:: A "prior notification" law

Former Formula 1 chief Max Mosley has campaigned for a law requiring newspapers to notify the subjects of damaging articles before publication since he was the subject of a News Of The World expose.

Lord Justice Leveson has expressed an interest in whether journalists contact people and organisations before running negative stories about them.

But the European Court of Human Rights has already rejected Mr Mosley's proposal, which would have major implications for freedom of expression, and there appears to be no prospect of it being introduced.

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Chris Jefferies Urges MPs To Back Leveson

Christopher Jefferies, who won libel damages after his arrest over the murder of a woman, has penned a letter to MPs asking them to support the Leveson recommendations on press regulation in full.

Mr Jefferies, who was arrested on suspicion of the murder of Joanna Yeates in Bristol in December 2010 but released without charge, was vilified by some newspapers.

He says in the letter: "I believe it must be implemented in full if we are ever to have a press that works in the public interest, and make sure the abuses we have seen never happen again.

"Over the months that Leveson has been sitting it has become clear that the vast majority of the public do not want the present self-regulation of the press, by the press, to continue.

Mr Jefferies was arrested over the murder of Joanna Yeates

"I was pleased to see this echoed in the opinion polls published recently in which the public say they want complaints about the press to be dealt with by an independent regulator.

"The latest YouGov poll, commissioned by the Media Standards Trust, confirmed that 79% of people are in favour of a press regulator established by law - and 82% say it is no longer acceptable for newspaper owners to control the press complaints system."

Mr Jefferies, who let a flat in Bristol to Joanna Yeates and her boyfriend, was arrested after she was found dead in December 2010.

Dutch national Vincent Tabak was later convicted of Ms Yeates's murder and Mr Jefferies won damages from eight newspapers.

"The way I was treated by the newspapers in that period was without doubt the worst time of my life," he said in the letter, which was written on behalf of Hacked Off, campaigners for the victims of phone hacking and media intrusion.

Cross-party talks on the report will resume later with Harriet Harman representing Labour and Culture Secretary Maria Miller for the Tories.

They will take place before MPs debate the contents of the 2,000-page report, which was published last Thursday.

Labour has started work on drafting its own Bill based on the Leveson recommendations for press regulation and will use it as the basis for a Commons vote if David Cameron blocks reform.

:: More than a 123,000 people have now signed a petition by the Hacked Off campaign for an accountable press, calling for full implementation of the Leveson proposals.

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UK Mulls Withdrawing Ambassador To Israel

Britain is considering withdrawing its ambassador to Israel over the country's settlement building plans, Sky sources say.

The Government is expected to decide later today how to respond to Israel's plan to allow further settlement building in the controversial E1 area of East Jerusalem.

Sources have told Sky News that the Foreign Office is considering what action to take saying "all options are on the table".

This could include withdrawing the British Ambassador to Israel and the suspension of trade agreements.

Israel approved proposals to build 3,000 additional homes last week in a plan that could cut off Palestinians in East Jerusalem from the rest of the West Bank.

Britain's diplomatic threat comes the day after the settlement plans were derided by the head of the United Nations Ban Ki-moon as an "almost fatal blow" to peace hopes.

Any diplomatic action is likely to be taken in concert with other European powers, with France currently playing a crucial role in coordinating joint action.

Sources have said there is "an appetite for action" within the Foreign Office, which could also take the form of "revisiting" the EU's trade agreements with Israel.

The UK could invoke human rights clauses in order to suspend the trade association agreements.

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M1 Car Crash: Two Men Killed In Collision

Two men have been killed in a crash on the M1 which forced a section of the motorway to be closed, police say.

The collision between two black BMW cars happened shortly before 2.40am on the southbound carriageway between junctions four and five, near Watford in Hertfordshire.

The driver and his front seat passenger were killed, while another two male passengers in the car were taken to St Mary's Hospital in Paddington, central London, with "serious injuries", a Hertfordshire Police spokeswoman said.

Two men travelling in the other BMW are being treated in Watford General Hospital, although their injuries are not thought to be life-threatening, she added.

An investigation is now under way to determine the cause of the crash.

The accident resulted in the closure of five junctions of the motorway in both directions - although the northbound carriageway has since reopened.

The southbound carriageway between junctions four and five, between Edgware and Watford, is expected to remain closed until at least mid-morning, a police spokeswoman said.

Drivers were advised to use the A1, A40 or M40.

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Millions Of Households 'Feel Squeezed'

More than 10 million households are feeling financially squeezed and almost one in 10 have defaulted on a loan, bill or housing costs, a consumer group has said.

Releasing its findings ahead of Chancellor George Osborne's Autumn Statement this week, Which? urged the Government to ensure spiralling energy and food costs are kept under control.

The group's "squeezometer" found almost one in four people are feeling financially squeezed, equating to 10.2 million households.

Researchers found 9% of households have defaulted on a loan, bill or housing costs.

Some 6% of households have gone into an unauthorised overdraft or used a payday loan to tide themselves over.

Researchers highlighted consumers' top worries as the price of fuel, energy and food.

A string of energy firms have recently announced bill hikes, putting further pressure on families this winter.

Food costs are also on the increase, and last week the Office of Fair Trading said eight  supermarkets have agreed to a set of principles following concerns over special offers and promotions for food and drink.

The supermarkets have agreed not to artificially inflate prices to make a later "discount" look more attractive.

Which? executive director Richard Lloyd said: "With 10 million households feeling the squeeze and consumer confidence remaining low, the government has a job on its hands to convince people that everything possible is being done to keep unavoidable costs like energy and food bills under control.

"We're looking for further progress in reforming the energy market, an end to misleading food price promotions, and more competition in banking to take some of the pressure off hard-pressed consumers."

The research asked 2,100 UK adults in October if they had experienced a range of financial difficulties in the previous month.

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First Text Was Sent To A Mobile 20 Years Ago

By Richard Suchet, Sky News Reporter

Monday marks 20 years since the first text message was sent to a mobile phone.

The first SMS was sent on December 3, 1992, when a 22-year-old British engineer called Neil Papworth - an employee of the technology company Sema - used his computer to send the message "Merry Christmas" to an Orbitel 901 mobile phone.

Texting has now surpassed the traditional phone call as the most common method of staying in touch.

Speaking to Sky News, Mr Papworth said he never envisaged that texting would be so popular.

"Back then I had no idea - I was just doing a day's testing. It wasn't until the 10th anniversary that I realised and thought 'Wow, that was a big thing'.

"And here we are another 10 years later and text messaging has gone on to even bigger and better things now."

According to figures released by Ofcom, more than 150 billion texts were sent in the UK last year, almost triple the amount sent five years ago.

Its most prolific users are 12 to 15-year-olds, who send an average of 193 texts every week, almost four times as much as the UK average.

In fact, most of us are now more likely to text a friend than to pick up the phone or have a face-to-face conversation with them.

But the first half of 2012 saw two quarterly declines in the volume of SMS messages sent in the UK.

The drop is being put down to the meteoric rise in web-based communications - many of which are freely available on smartphones and tablets - like WhatsApp, Blackberry Messenger (BBM), iMessenger, Google Talk and MSN Messenger.

An increase in communication through social networking sites like Twitter and Facebook is also thought to be having an impact.

SMS stands for Short Messaging Service and a message is traditionally under 160 characters in length.

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Open Prison Fugitive Arrested By Police

Fugitive Ivan Leach, who absconded from an open prison, has been found by police in Camden, north London.

The 47-year-old had been on the run from North Sea Camp open prison in Boston, Lincolnshire since October 9.

Police arrested him on suspicion of a number of offences this morning in the Camden area, Scotland Yard said.

Leach, also known as Lee Cyril, was wanted for questioning about a rape in Scotland committed while police hunted for him.

On October 15, a woman was woken and raped by an intruder in her home in Perth, and the following day a mattress was stolen from her home.

Leach, from Preston, was jailed in 2005 for robbing a 90-year-old woman in her home in the city.

He was given a life sentence with a minimum tariff of five years.

Leach is currently in custody in a north London police station.

Police had warned people not to approach the fugitive under any circumstances.

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