DT Fine Art

ALBANY, NY — There are few people in scandal-shocked Albany arguing these days that the current system of campaign finance and ethics checks are ideal or even functional.

And yet legislating ethics and campaign finance reform is still being played as a political game, where each side tries to ratchet up support for its own agenda to give their members the greatest benefits and the least troublesome restrictions, while boosting the ability of special-interest allies to influence legislation and elections.

Even Albany’s steamrolling governor, Andrew Cuomo, has held back from pushing groundbreaking reforms — instead proposing piecemeal bits of reform legislation that in turn have been privately derided by legislators.

“He just wants us to pass something so all this doesn’t stick to him,” said one legislator, who spoke on condition of anonymity so as not to anger the Cuomo administration. “Will the public think his proposals will get the job done? I can’t say for sure.”

Reform groups are also a bit put off by Cuomo’s proposals.

“His bills are steps in the right direction, but true reform would reduce the amount of illegal behavior by elected behaviors, and not just make it easier to catch or penalize them,” said Bill Mahoney of the New York Public Interest Group. “Whatever his final reform proposal is should include components such as public financing, and we hope that it is made public with enough time for New Yorkers to read them and weigh in.”

Reformers say change is not only needed, but being demanded by the public following the arrests in recent weeks of three state lawmakers and the revelations that two other lawmakers wiretapped their colleagues for federal investigators looking into allegations of public corruption. Federal prosecutors have hinted that at least a half dozen other state lawmakers may be under investigation.

Fair Elections for New York, an umbrella organizations of groups that support campaign finance reform, has touted a recent Global Strategy Group/Mercury Public Affairs poll that found major dissatisfaction among New Yorkers with corruption in Albany and overwhelming support for public financing of campaigns.

The poll found 80 percent of independents, 75 percent of Democrats and 68 percent of Republicans support Fair Elections for New York’s proposal calling for public matching funds for small donations, lower contribution limits and the disclosure of spending by outside groups.

Mahoney and many of his colleagues in good government including Citizen Action, Common Cause, and The Brennan Center, advocate adopting the New York City style of public campaign financing where candidates have to raise a certain amount of money to earn a matching amount of public funds. If rules aren’t followed, candidates lose the right to public funds.

Good government groups also say that reforms need to be made to the existing Board of Elections system so that if a public financing system was created candidates would not be able to opt out and enjoy the largesse of the current system.

NYPIRG issued a report on May 7 that showed over 1,000 violations of campaign finance law since 2011. It was just the latest in a stream of reports from the group that demonstrated that the State Board of Elections is either incapable or unwilling to fine and punish groups that violate the state’s campaign finance laws.

Cuomo has advocated creating an independent watchdog to oversee the current Board of Election to ensure enforcement by the otherwise partisan board. He also favors tightening donation regulations, empowering local district attorneys to prosecute legislative corruption, tightening the definition of a bribe and stopping party leaders from having the exclusive power to give their lines to candidates.

Conspicuously absent from that list is public campaign financing, which Senate Republicans vehemently oppose — and even held a hearing last week billed as a look at how the New York Citys public campaign finance system doesnt work.

“Right now we haven’t been making significant progress. Public financing, they don’t agree,” Cuomo told reporters on Wednesday. “They don’t think that’s the answer. The Senate Republicans don’t believe in it. It is not about numbers and cost, it’s about philosophy they don’t think public financing makes it better. There is a sentiment that public finance could make it worse.”

A number of supporters of the public financing model were not allowed to testify at the Senate Republicans’ hearing last week, while others who did get invited to speak were national figures like David Keating, of the Virginia-based Center for Competitive Politics (the nonprofit bills itself as “the nation’s only organization dedicated solely to protecting First Amendment political rights.”)

While admitting he had no basic knowledge of how much corruption existed in the city or state system, Keating praised Oregon’s system where there are no campaign finance limits. He repeatedly warned that with public financing, taxpayers could end up funding neo-Nazi candidates.

Others who testified, such as former Rudy Giuliani Deputy Mayor Randy Mastro, testified about what flaws he thought could be fixed if New York State were to adopt the model.

Republican Sens. Kathy Marchione and Greg Ball repeated that they felt taxpayers would not want to foot the bill for elected officials to run. Ball continually invoked the name of wealthy businessman George Soros to say that billionaires could subvert the system and opt out of public financing and run on their own cash.

On the same day as the hearing, the Democrat-dominated State Assembly passed its campaign finance bill, which would create a 6-to-1 public matching system like New York City’s but it would not end “housekeeping” accounts that allow corporations to dump unlimited cash to each conference.

The bill also would not restrict the ability of party heads to award their lines to candidates. This is seen as a favor to the Working Families Party, which supports progressive causes, is backed by labor and is a strong ally of Assembly Speaker Sheldon Silver.

The Senate Republicans’ partners in governing, the Independent Democratic Conference, came out in full support of a public financing of campaigns after one its four members, state Sen. Malcolm Smith, was indicted in a scheme to buy a spot on the Republican ballot for mayor in New York City.

The IDC plan, perhaps the most comprehensive out of any proposal, would ensure that any candidate who opted out of the public finance system would have to abide by strict contribution limits that would lower the donation ceiling to $2,600 in all state races.

The current donation limits vary by position and committee but New York’s have been going up rather than down because the BOE sets the limits based on a formula that is updated each year.

The current contribution limit to campaign committees is around $100,000, while the limit for statewide races is around $40,000. Campaign committees have abused state donation limits by taking massive contributions from corporations and then funnelling them to individual candidates. The IDC plan would close this loophole and end the the ability of party heads to hand their line to one candidate.

The IDC have been holding a series of hearings across the state on campaign finance reform and Cuomo has even hinted that the future of campaign finance reform relies on their willingness to push the issue.

But Republican Sen. Dean Skelos, who shares power in the Senate with the IDC’s Jeff Klein, has indicated he is not willing to bring campaign finance to a vote; and Klein has not indicated he will try to force a vote.

“I think there is an opportunity if you count heads between the Senate, Assembly and governor to come to a very serious small-donor, ethics reform package,” said Democratic state Sen. Liz Krueger, who sits on the elections committee. “And yet, I dont hear Dean Skelos saying he is willing to discuss any of this. The question is, ‘Do the votes count? Or do they only count when Dean Skelos and Jeff Klein agree they should count?”

Klein is one of the Legislatures most prodigious fundraisers, having mastered the current campaign laws. Questions have been raised about some donations to Klein. In December 2012, Klein returned some donationsafter the Riverdale Press in the Bronx reported that some of the money was linked to donors with felony convictions and ties to organized crime. There was never any evidence, the newspaper reported, that favors were granted in exchange for donations. Kleins officedidnt respond to requests for comment for this story.

For Senate Republicans, the issue may not be about public support or philosophy as Cuomo says. The issue may be based on survival.

As Republicans experience a major decline in party rolls around the state, they rely more heavily on major donations from corporations.

“Report after report shows massive corporate donations benefit the Senate Republicans,” said Jessica Winsnewski of Citizen Action. “Big money goes where power is. Senate Republicans are protecting the status quo rather than bringing real peoples voices into the process.

A November 2012 report by the Center For Working Families showed that, at the time, 49 of the state’s 62 senators got more than half their campaign cash from corporations and donors who contributed $1,000 or more. The top 10 recipients of corporate cash in the Senate were Republicans including Sens. Skelos and Tom Libous, the report said. The exceptions are Sen. Jeff Klein and Buffalo Democratic Sen. Tim Kennedy. In terms of percentage of funds raised through corporate donations, Republicans make up the entire top ten.

Senate Republicans, however, have insisted that bad actors will do bad things no matter what system is in place and taxpayers should not be on the line to fund campaigns.

Senate Democrats have offered a plan that would greatly restrict the use of campaign funds, bar them from being used to fund legal defenses, take away pensions from convicted lawmakers and require lobbyist’s donations be specially marked on contribution disclosures.

Their plan, like the Assembly’s, does not address the ability of party heads to give their line to candidates — again seen as a sign of their relationship with the Working Families Party which endorses and helps elect many Senate Democrats.

Assembly Republicans have a similar proposal that would restrict use of campaign funds and rescind pensions but the centerpiece of their proposal would create a recall system for elected officials. A recall campaign could be started if a group secured the signatures equaling 20 percent of the number of voters who voted in the official’s last election.

The tool could be quite a powerful one for the Assembly minority because grassroots campaigns could be started to recall a legislator who faces legal trouble or simply because they pushed for an unpopular measure.

Assembly Minority Leader Brian Kolb is steadfastly opposed to public financing of campaigns.

“Look at John Liu and the irregularities with his fundraising, and he is using the public system,” Kolb told the Gazette. “You also have the problem of having only rich people being able to run for public office. Bloomberg can write a check and go after a legislator who did something he didnt like. He can take the regular guy right out of the mix.”

Last week, Cuomo invoked his oft-repeated threat to call a Moreland Commission that would have unprecedented powers to investigate the legislature if a deal isn’t reached for an campaign finance overhaul. “We don’t have any agreement thus far but we will keep talking. There are other options where I can move unilaterally,” Cuomo told reporters.

But with several federal investigations already underway that may not be much of a threat anymore.

Politically, Cuomo may not be able to carry the load of public financing. His poll numbers have dipped this year as he pushed through gun control laws and has taken more liberal policy stances.

As much as Cuomo may push the IDC to convince the Senate Republicans, the IDC doesn’t have much recourse for retaliation since they are even less likely now to leave the Republicans with key Senate Democrats possibly facing corruption investigations. The IDC, of course, already had to deal with its association with Smith.

Without functional support in the Senate, Cuomo will be left getting the scraps the Legislature throws him. Still, the governor has made it clear he just wants legislators to act on something — anything — to reassure the public.

“We need to say to the people of New York, ‘To the extent that you have a question about the integrity of our government we have an answer,’” Cuomo told reporters on May 8. “I’m not willing to let the session conclude without a response.”

CORRECTION: A previous version of this story inaccurately reported that state Sen. Jeff Klein had faced ethical questions over his campaign fundraising. The story should have said that questions were raised about donations made to Klein in December 2012 in a Riverdale Press report. Klein returned the money.

The government and the private sector did not pressure the Bank of Thailand for a rate cut at the May 29 meeting, according to Bank of Thailand governor Prasarn Trairatvorakul.

After the meeting in the morning, Prasarn said overall economic condition was at the centre of the discussion, not particular measures to tackle the baht appreciation or the policy rate.

There was no pressure on the Monetary Policy Committee’s rate decision, when it convenes the May 29 meeting, the governor said.

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong initiated the tri-partite meeting today, expected to neutralise the intensifying conflicts between the Finance Ministry and the central bank over the exchange rate policy. Joining the meeting, which is rare in nature, was the MPC members and the Federation of Thai Industries.

Prasarn said that short-term and long-term economic outlook was discussed, while the private sector expressed their troubles which ranged from labour shortage, productivity to competitiveness. It was agreed that all parties are facing big challenges in light of global volatility.

The MPC has been pressured to cut the policy rate, to slow down capital inflows which have boosted the baht against US dollar. Prior to its next meeting, the National Economic and Social Development Board will reveal economic indicators in the first half.

Prasarn noted that Kittiratt suggested similar meetings in the future and that the central bank would host the next. He agreed that many issues require views from the public sector, for integrated measures.

Nok Airlines Plc (NOK), owner of national low-cost carrier Nok Air, will float its initial public offering of 187.5 million ordinary shares next month. It expects to raise Bt5 billion.

The funds raised will be spent on buying new aircraft to expand its fleet and also invest as working capital to secure its long-term business, according to Vitai Ratanakorn, the companys chief financial officer.

It will be the first airline to list on the Stock Exchange of Thailand (SET) this year. Bangkok Airways, another low-cost airline, is expected to follow its move. It is projected that NOK will be traded on the SET by the end of next month. Siam Commercial Bank Plc (SCB) is its financial adviser with SCB Securities Co as the sole lead underwriter.

It submitted its filing to the Securities and Exchange Commission (SEC) on March 6.

Out of 187.5 million IPO shares, 62.5 million are existing shares, while the remaining 125 million are newly issued. Its paid-up capital will be raised to Bt625 million from Bt500 million at present. Its par value is one baht.

Today, Thai Airways International Plc, the national carrier, holds a 49-per-cent stake in the company. After the IPO, its share will be reduced to 39.2 per cent. The remaining shareholders are Aviation Investment International, holding 10 per cent; CPB Equity with 4.8 per cent; Patee Sarasin, who is NOK CEO; SCB; King Power; and the Asvinvichit family – each holding four per cent.

Despite THAIs majority stake in NOK, the companys board remains independent. The company said the IPO would not effect its current shareholders, who would continue to receive the same benefits they have received since operations began.

Founded in 2004, the firm has enjoyed steady growth. Last year, its net profit was recorded at Bt504.7 million over total sales of Bt8.21 billion. In the first quarter of this year, its net profit was at Bt425.3 million over total sales of Bt2.81 billion, thanks to its strategic network expansion.

It is anticipated that 2013 will see the highest profit earnings for the company since its operations commenced. Its new energy-saving Boeing 737-800 aircraft are also expected to boost company earnings this year.

From 2010-2012, Noks sales revenue grew more than 40 per cent annually, as it maintained a cabin factor of 80 per cent.

This year, the company said its cabin factor – number of passengers per flight – regularly reached 90 per cent.

In addition, the airline projects it will carry 6 million passengers in total this year, up from 4 million last year. The domestic market is its core business with 23 routes. The company also boasts the highest flight frequency with 483 per week. Rival AirAsia currently has 13 routes with a flight frequency of 333 per week.

The airline has 41 per cent of the domestic market in the low-cost segment and projects that this will increase steadily over the next few years. In Thailand, the firm believes that there is more room for growth, especially flying from city to city, without flying via Bangkok.

Regionally this year, the firm will launch flights from Mae Sot to two cities in Myanmar – Mawlamyine in September and Yangon in October – using smaller aircraft. In November, it will also launch flights to Yangon from Bangkok’s Don Mueang International Airport. Myanmar is a key focus for the airline this year, as it plans to consolidate its existing network and look for new investment opportunities as the country opens its doors to foreign investment.

The airline is also considering flights from Chiang Mai to other cities in Myanmar, including Mandalay and Bagan.

The opening of the Asean Economic Community (AEC) in 2015 will provide more opportunities for low-cost carriers. Geographically, Thailand is considered a regional hub, with flying time to regional destinations averaging four-and-a-half hours.

Vitai said regional expansion of its network would be step by step, due mainly to the limited number of aircraft at its disposal. The launch of any new routes would depend solely on whether they were guaranteed to be profitable, he said. In the past, the airline has been forced to cancel services to Bangalore, India, and Hanoi, due to rising fuel costs and the weakening baht.

Nok Air currently has 16 aircraft in its fleet, with plans to increase that number to 23 next year and 30 in 2015 – an increase in seat capacity of 37 per cent annually until 2015. Its aircraft include the ATR and Boeing 737-800, with an average age of 7 to 8 years.

Uh-oh. Did you forget its Mothers Day?

Dont panic. No worries. We understand.

On behalf of moms everywhere, weve assembled some last-minute, low-cost ways to show her you remembered. (Even if you didnt.) Here you go:

Put it in writing

Theres a reason why moms keep a box of those hand-scribbled notes and handmade cards from their kids. Even if youre a grown-up kid, take a minute to put something heartfelt in writing.

Tell her why you appreciate her. Share a funny family memory. List the five most-wonderful things shes ever done for you. Or the Top 10 funny #x96; or sentimental #x96; family moments, suggests Pam Farley, a Sacramento mom who blogs at Brown Thumb Mamma.

Pick up the phone

Whether your mom is across the state or across the country, hearing your voice may be all she needs. Call her just to chat.

And listen. Pay attention to what she is saying and nod your head and acknowledge her #x85; stop texting your friends and pay the (heck) attention already. You have no idea what a gift this is, listening to your mother, said Sacramentan Margaret Andrews, who writes a humor blog, NannyGoatsInPanties.com.

An outing

With two kids and limited income, Farley said she and her husband always share a family-frugal outing. On Mothers Day, she picks the locale; on Fathers Day, he decides. We usually go hiking or someplace we normally wouldnt make time to go, like the Crocker Museum or Empire Mine State Historic Park.

Leave her alone

Especially in young families, sometimes all mom wants is a break. Alone. Take the kids so she can sit around in her jammies and watch a sappy movie, or read a girlie magazine or soak in the bathtub with a good book, said Farley, whose kids are 7 and 1.

Or the reverse: Let mom have a day off to go wherever she pleases. While shes gone, buzz through the house, picking up, cleaning a bathroom or two, doing the dishes, making dinner.

I would love to come home to a clean house, said Farley. Id think I was in the wrong house.

Shopper duty

If you want to help plump up Americas economy, theres still time to dash to your favorite mall or retailer. The average consumer will shell out $168.94 this year, according to the National Retail Federations annual Mothers Day survey. Thats a big boost from 2009, when the recession crimped spending to $123.89.

Who are consumers buying for this Mothers Day? In addition to mom, its their: wife (23.6 percent), daughter (10.5 percent), grandmother (8.5 percent) or sister (8.2 percent). But the majority #x96; more than 65 percent #x96; will be buying for dear ol mom (or stepmom).

Frame it

Take a photo; Instagram it and print a copy on your computer. Or use some of your own artwork. Or pick out favorite childhood photos of the two of you or from a memorable family vacation. Pick up inexpensive frames at grocery stores or discount stores.

Michele Boal, co-founder of Coupons.com in San Francisco, said one of her favorite Mothers Day gifts was a handmade photo collage with a personal message from her then-8-year-old son.

Bloomin good idea

If your yard is blooming, pick a bouquet. If not, head to the farmers market, a florist or the nearest grocery store flower stand. It doesnt need to be a $50 bouquet of red roses. Even a single stem, tied up with a bow and a sweet note, is enough. Dont have a vase? Stop at a dollar store or use a glass jar, dressed with a ribbon.

Didnt make reservations?

Try a picnic. Stop by a deli or gourmet grocery. Pick up your moms favorite to-go dishes and head to a local park, picnic spot, even your own backyard. Bring a tablecloth, something to sit on, utensils, napkins and perhaps a bubbly beverage.

Or head to the kitchen: Breakfast in bed, lunch on the lawn, dinner at home. Make it festive, with everyone involved with the slicing, dicing, chopping and sauteing (age-appropriately, of course).

The kitchen is the one place where everyone comes together, especially if theres good music playing in the background, said Boal.

Her kids, ages 15 and 9-year-old twins, enjoy surprising her with a breakfast-in-bed menu and making Mama Juice #x96; the non-wine variety #x96; by throwing fresh or frozen fruits and veggies #x96; even kale #x96; into the blender, with a little yogurt or ice.

Or bake something sweet. Even if its from a boxed mix, a homemade treat says you care.

And with anything from the kitchen, be sure to clean up all the dirty dishes.

Green thumbs

What better time to plant a summer garden for mom? Pick up some seed packets and start digging. No matter how much space you have at your home, says Boal, planting veggies or fruits together in pots or a garden brings a lot of fun and laughter as you find worms and snails in the ground and flip top soil in the air.

Listen to Your Mother

In this case, its a live, standup show celebrating the complexities and absurdities of motherhood, as shared by 15 local writers, bloggers and everyday moms. Its tonight at 7 at the Crest Theatre in downtown Sacramento, part of a series of readings in 24 cities across the country.

For $25 a ticket, you can take your mom and laugh along to witty, sentimental, irreverent and lovable takes on momhood. Tickets are available at the box office, 1013 K St.

The Sacramento event benefits 916 Ink, which supports local youth literacy projects. And just a warning: Not all content may be suitable for young ears.

Moms favorite things

Invite her to celebrate one of her favorite entertainments. Say shes a Downton Abbey fan, said blogger Andrews. Instead of breakfast in bed, give her high tea at home. Bust out the fine china and your best tablecloth and serve some grocery store tea (or that fancy loose-leaf stuff), scones and cucumber sandwiches, cut into fourths with the crusts removed.

Invite her best friend or just the family. And to make sure its royally authentic, said Andrews, Make sure you call her Mum all day. Or Her Majesty.

DIY

Were sure youve got your own creative ideas for celebrating mom. Feel free to share them with us online.

And better yet: Remember that you dont have to use these only on Mothers Day. Spread them over the next 12 months and youll make mom happy all year long.

Call The Bees Claudia Buck, (916) 321-1968. Read her Personal Finance blog, www.sacbee.com/personalfinanceblog.

copy; Copyright The Sacramento Bee. All rights reserved.

Read more articles by Claudia Buck

A vote by the NBAs Board of Governors that could finally settle the Seattle/Sacramento battle for the Kings is expected to come Wednesday in Dallas.

The two days preceding that vote, though, could loom just as critical.

Several media outlets, including NBA.com, reported the leagues combined finance and relocation committee will hold a conference call Monday to begin hashing out the latest developments in the saga.

The most notable of those are an increased offer by the Seattle group Friday, and then the revelation Saturday that the Chris Hansen-led contingent has reached agreement on a backup offer with the teams current owners, the Maloof family, for 20 percent of the team if the NBA turns down the Seattle groups bid to be a majority owner.

It has also been reported the relocation committee will meet in person in Dallas on Tuesday, likely hearing presentations from each of the competing ownership groups.

It was the seven-person relocation committee that voted unanimously April 29 to recommend the Board of Governors not allow the Kings to move.

Hansen responded to that vote by vowing he would continue to fight in an effort to buy the Kings and move them to Seattle.

His recent moves to raise the overall value of the team to $625 million and also offer a $115 million relocation fee and make the backup deal with the Maloofs have muddied the waters, with several reports that NBA owners are again rethinking whether to allow the Kings to move to Seattle.

Selling 20 percent of the team to Hansen, for a reported $125 million, would give the Maloofs some money while allowing them to keep the team for now and, as ESPN.com reported, apply pressure on the city of Sacramento to execute an arena deal with them. If that deal fell through, then the team could again apply for relocation.

Hansens latest maneuvers came a few days after Sacramento Mayor Kevin Johnson had said Hansen should take the high road and step back.

Predictably, Hansens weekend moves were widely criticized in Sacramento, especially the new deal with the Maloofs, who are said to want to sell the team only to the Seattle group.

Chris Hansen and Steve Ballmer seem to assume everyone can be bought, wrote Sacramento Bee columnist Ailene Voisin.

Wrote another Sacramento Bee columnist, Marcus Breton: Even in an ego-driven business like the NBA, the posture of Hansen and Steve Ballmer, CEO of Microsoft is preposterous. These two are going to war with the NBA with the Maloofs as co-conspirators.

Ken Berger of CBSSports.com also sharply criticized Hansens latest moves, including the relocation fee, which gives each owner roughly $4 million, writing: The NBA would be setting a precedent for future prospective owners that its OK to circumvent the leagues constitution and bylaws and simply continue throwing money at them until they say yes.

Berger predicted it wont work, writing: The owners on the relocation committee cant change their minds, unless they want to sign off publicly on accepting a bribe.

The members of the relocation committee are: Clay Bennett (Thunder), Ted Leonsis (Wizards), Micky Arison (Heat), Greg Miller (Jazz), Herb Simon (Pacers), Glen Taylor (Timberwolves) and Peter Holt (Spurs).

The finance committee features: James Dolan (Knicks), Wyc Grousbeck (Celtics), Larry Tanenbaum (Raptors), Jeanie Buss (Lakers) and Robert Sarver (Suns).

Bob Condotta: 206-515-5699 or . On Twitter @bcondotta.

Interest rates have fallen and its becoming increasing clear theyll stay relatively low for a while.

And housing prices have fallen.

Since their peak in mid-2010, housing prices have fallen by less than three per cent according to the bureaus measure of established house prices.

But they have fallen by nine per cent compared with the consumer price index, by 12 per cent versus the bureaus standard measure of wage rates, and by 13 per cent compared with the housing rent component of the CPI.

So housing is not as pricey as it was not long ago, loans are cheaper to service, especially compared with rents.

Which of those figures most highly in the decisions of borrowers to borrow and lenders to lend will always be unclear.

But its undeniably happening.

And its one reason that another interest rate cut or two is by no means a done deal.

The fall, at long last, of the Australian dollar below one US dollar for the first time since June last year, is another.

Recent signs of life in retail sales are yet another.

None of these signs clinch the case for the Reserve Bank of Australia (RBA) to shy away from another cut.

The valley between the mining investment boom and whatever comes along to replace it still has to be crossed.

The RBAs own forecast last week show the Australian economy growing by 2.5 per cent over the coming year, well under its potential for growth faster than three per cent.

And, as a result, well under whats need to stop unemployment from rising.

So another cut or two could well be needed.

But the housing finance figures warn that lower rates are by no means locked in.

The economy might just be able to scrape by without them.

AFP – Israels security cabinet was to discuss on Sunday proposed cuts in defence spending of over a billion dollars, as public opposition mounts to Finance Minister Yair Lapids austerity plans which include tax hikes and cuts to public services.

Lapid wants a cut of four billion shekels ($1.12 billion, 860 million euros) to help plug a budget deficit expected to be capped at 4.65 percent of gross domestic product this year and three percent in 2014.

To meet his targets he has proposed an increase of 1.5 percentage points in personal income tax, one point in corporate tax and a one-point rise in VAT, together with a cut in family allowances.

In an attempt to cushion opposition to such unpopular measures Lapid is seeking to slash the defence budget which, including salaries and pensions, currently makes up eight percent of GDP, according to central bank data.

In the past the defence establishment and the military industries have blocked such plans and, in fact, won supplements to spending.

In 2012 for example the budget passed by parliament was 55.5 billion shekels, ($ 15.5 billion, 11.9 billion euros) including annual US military aid of some three billion shekels final spending for the year hit 60.5 billion shekels ($16.9 billion, 13 billion euros).

For 2013 and 2014, defence bosses have decided to again seek to foil the treasurys plans.

According to media reports they want several hundred million dollars extra for their five-year equipment purchase programme.

In the event of war, politicians who cut defence spending will bare the responsibility, army radio quoted unnamed military officials as saying.

Among risks from neighbouring countries Israeli officials mention are rising tensions with war-torn Syria and the Damascus regimes Lebanese Hezbollah ally, as well as Islamic militants in Egypts Sinai peninsula who have fired rockets into the Jewish state.

Prime Minister Benjamin Netanyahu continually speaks of the threat from Irans nuclear programme and does not rule out the use of military force to stop Iran from building a nuclear weapon.

According to Netanyahu confidant Tzahi Hanegbi, an MP in his Likud party, a final decision on whether to hit the Islamic republic is likely by the end of this year.

Lapid tapped into middle class grievances over the cost of living and social injustice to take his newly-minted centrist Yesh Atid party to striking success in its first ever election campaign in January, becoming the second-largest party in parliament and a partner in Netanyahus coalition government.

He is warning that if the defence establishment does not accept cost-cutting he will be forced to perform painful surgery on health, education and social spending.

13/05/2013

By Daniel Hunter

To mark the start of Export Week leading export finance experts are urging companies to attend an event focused on finance options from cashflow to credit insurance – to help firms successfully trade overseas to boost long-term profits.

Denise Rowley, the Export Finance Adviser for London, is one the key experts speaking at the event on Monday 13 May which will kick off UK Trade Investments (UKTI) Export Week (13-17 May). This is a series of events across the Capital promoting opportunities in high-growth markets such as Brazil, China, India, Russia and beyond.

The master class event – Finance options when entering high growth markets – is being held at 60 Cannon Street, EC4N 6NP with still a few places left. Led by industry professionals this practical event will give insights and be full of tips to help delegates avoid risk and learn how to access finance to increase their competitiveness.

Denise, who brings more than 25 years of experience to this role, having worked in the credit insurance industry in the capital is already giving London firms one-to-one support on how to best access finance and insurance for trading overseas. As a regional UK Export Finance advisor, the UKs export credit agency, she is based with the team at UKTI London, therefore her role strengthens the range of free advice and practical support that companies can already access.

Finding the right kind of financial help can be a challenge. My role is to help remove some of the barriers around finding appropriate insurance cover or finance for exports, particularly for smaller firms, Denise said.

As well as giving an independent view on how to access finance, most of my time is being spent raising awareness of the government support available to exporters, by speaking at events such as this Masterclass,…continued on page two gt;

Cyprus is hoping to patch up relations with the eurozone during todays Eurogroup meeting, its finance minister has said.

Haris Georgiades (appointed in April) told CNBC that he was eager to repair any damage with relations with Brussels, following Marchs botched bailout that resulted in capital controls being imposed in Cyprus and heavy losses on larger bank customers.

Georgiades also warned that Europe must learn lessons from the Cyprus debacle and rethink its decision-making process.

Citibank Thailand will maintain its focus on consumer finance and wealth management even as its peers are looking to expand into wholesale banking.