China rail crash families accept compensation as Beijing moves to silence furore

China's premier Wen Jiabao places flowers as he mourns the victims who died during the high-speed train crash at Wenzhou, in Zhejiang province. Photograph: Str/AFP/Getty Images

Relatives bereaved by China's high-speed rail crash have accepted compensation after the government doubled its original offer, as authorities tried to silence the furore over the disaster. Ten families have agreed to the deal – 915,000 yuan (?87,000) per victim – the state news agency reported. The death toll is now 40, with another 190 injured.

Other relatives say the compensation is insufficient and that the ministry of railways, which has apologised for last weekend's disaster, should take more responsibility. "Our deceased relatives were in the prime of their lives; they have children and senior parents to support," said Chen Engfen. He said he would not accept less than ?141,000.

The crash, near Wenzhou in Zhejiang province, happened when one train ploughed into the back of another. Six coaches were derailed, with four plunging from a viaduct. Officials have blamed design flaws in signalling and are checking the equipment at 58 other stations.

The disaster, and the government's handling of it, unleashed an outpouring of anger. Many see the crash as epitomising the problems facing China in its headlong rush towards development, including the lack of transparency.

However, unusually aggressive reporting has come to an abrupt halt. "Some newspapers have been told not to run articles, or had prepared far harder coverage but at the last minute had the rug pulled out from under them," said David Bandurski of Hong Kong University's China Media Project.

China has seen a similar pattern in previous disasters, with censors shutting down discussion and relatives coming under pressure to sign compensation deals and stop raising questions about the incident.

Japan's Asahi Shimbun reported a relative as saying the family stopped protesting about the crash "because pressure was applied privately".

Chinese journalists have said that a television producer was disciplined after his programme asked searching questions about the crash. A note on Wang Qinglei's microblog said that "as long as a country has journalists who resist pressure… it still has a soul".

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Zara Phillips weds Mike Tindall but the royals keep it simple

Zara Phillips and Mike Tindall after their wedding ceremony at Canongate Kirk. Photograph: Martin Rickett/PA

The bride, as ever, looked radiant in a beautiful little off-the-shoulder number and the groom looked simply delighted. Then a white stretch limo pulled up and disgorged the ushers and a gaggle of bridesmaids, all pink and giggly. A lone piper greeted them at the door of the MacDonald Hotel then guests who had been sipping beers and Bacardis at the cafes on Holyrood Road followed them.

It was the wedding day of local couple Paul and Sharon, and they didn't seem in the least fazed by the thousands heading in the other direction for the union of a royal and a rugby star in the Canongate.

The Edinburgh Evening News had predicted a crowd of only 2,000, but there looked to be at least double that gathered 10-deep in the Edinburgh sunshine and stretching most of the way up the Royal Mile.

Earlier, I had sought to secure one of the little commemorative union flags that most people in the crowd seemed to be sporting. For this was Edinburgh's Old Town – perhaps the only place in Scotland where you can wave the red, white and blue without making an exhibition of yourself.

In the days before the wedding of the Princess Royal's daughter, some had tried to induce outrage at the cost of the event to the public purse. They had chosen the wrong target, though. Anne is Scotland's favourite royal and seems cast in our image and likeness. She doesn't seem to brook any nonsense and you can imagine her helping the servants bring the coal in of a winter night. Besides, she's patron of the Scottish Rugby Union and attends all Scotland's matches in a tartan skirt.

Zara herself seems a fresh and sonsie young woman who has emulated her mother as a world-ranking equestrian. The occasion had a down-to-earth feel – even, dare I say it, couthie. Two of Mike Tindall's ushers were family members while three came from his rugby background. One was Peter Phillips, Zara's brother. The groom's brother, Ian, was also among their number. And there was also a little human touch becoming of Anne: as she watched the couple set off for Holyroodhouse she firmly linked arms with Tindall's elderly father, Phil.

The choice of the Canongate Kirk as the venue for the nuptials struck some as unusual and iconoclastic, but it wasn't really. This 17th-century chapel, one of the most handsome in the city and commissioned by James VII, is the parish church of the Palace of Holyroodhouse and of the Scottish parliament. Indeed, did the Queen not worship there just the other week? She was also welcomed to this church 59 years ago, not long before her coronation.

In the Canongate kirkyard, perhaps one of the most beautiful urban resting places in Scotland, lie the remains of David Rizzio who loved a queen once then paid for it with his life. There, too, are the bones of Robert Fergusson, a great Scottish poet who inspired Robert Burns, and the philosopher Adam Smith is interred just ahead of him. One of the best views in Edinburgh lies just beyond.

The spirit of another, whose remains do not lie in the Canongate, nevertheless haunts the Royal Mile.

Before his life of Samuel Johnson, James Boswell wrote his Edinburgh Journals based on his nocturnal adventures in this most historic of streets. This was 18th-century Scotland's Sunset Strip and housed many of the capital's shebeens and whorehouses.

Boswell, it seemed, visited every one. He would have chuckled at the procession of Daimlers ferrying the entire top tier of Britain's aristocracy to a church he once sashayed past while royally inebriated.

I digress. Across the road, Caroline and Lesley from Kirkcaldy were enjoying their day in the sunshine. Like many others in the throng, they would not regard themselves as great supporters of the royal family, but when the Queen whisked by with a wave, there were tears. "She's a lovely woman, I hope she enjoys her granddaughter's wedding," said one.

Thomas was there with three young children, his bronzed features belonging to someone who works outside for a living. Did he not resent the reputed ?500,000 cost of the occasion? "Not a bit of it," he said. "This is the Queen's parish and she does a lot for this country. I wouldnae begrudge her a penny."

It had just gone four o'clock when Zara and her new husband emerged from their nuptials. Everyone cheered. Soon she would arrive back at Holyroodhouse and be serenaded by the Royal Scots Association pipe band. As a sidenote, though, she will not take her husband's name and become Mrs Tindall. Zara Phillips it was, and still is.

"Who do you think made the dress?" asked Lesley. I told her it looked suspiciously to me like a Stewart Parvin number, having seen the couturier's triumphant 2010 show at London's White Gallery. She regarded me with renewed suspicion. "Are you havin' a laugh?"

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Rogue landlords flourish as would-be buyers forced to rent

Slum landlords of the type that enjoyed a boom in the 1980s are again doing brisk business because of major changes sweeping the property market, say housing experts.

Millions of people are being priced out of buying a property as mortgage availability becomes scarce and they struggle to raise a deposit. Latest figures suggest mortgage lending is now a third of what it was at the height of the boom in 2007.

A dearth of social housing, which is under acute pressure as local authority budgets are cut, is also contributing to a lack of affordable accommodation. An increasing number of people have no option but to rent, creating intense competition in the private rental market.

There are now 3.4 million households living in the private rented sector in England, a 40% rise over the past five years and the biggest increase on record, according to new analysis by Shelter. The trend has alarmed the Chartered Institute of Environmental Health (CIEH) whose officers are charged with ensuring the nation's housing stock meets adequate standards.

"People who are in relatively secure jobs but can't afford to buy are moving into the rented sector," said Stephen Battersby, president of the CIEH. "People who have traditionally used the private sector will drop further down the ladder into the hands of the more exploitative, neglectful landlords, if not those who are downright criminal."

The government claims three quarters of private tenants report they are happy with their accommodation, but experts point out that this leaves some 800,000 who have concerns, many with the way they are treated by their landlords.

In the past year, Shelter says it has seen complaints about landlords increase by 23%. Almost nine out of 10 environmental health officers say they have encountered landlords harassing or illegally evicting tenants from their homes. And almost all environmental health officers say they have encountered landlords who persistently ignore their responsibilities, with half believing they do this to make as much money as possible

"A chronic shortage of social housing and more people priced out of the housing market means that renting is fast becoming the only option for thousands of people in this country," said Campbell Robb, the chief executive of Shelter. "Yet our figures show a worrying increase in the number of people seeking help regarding problems with their landlord. It would appear that rogue landlords could be cashing in on this growing market."

Housing charities warn there is very little policing of landlords and the condition of their properties. In 2009, the English Housing Survey identified 1.5m homes in the private rented sector as "non-decent". Of these, 970,000 failed the Decent Home Standard. This has led the CIEH to call for a national register of landlords. "It's a public health issue that affects us all," said Battersby. "The NHS is spending ?800m a year because of poor housing, factor in social costs and it's ?1.5bn."

Environmental health officers working for Local Housing Authorities (LHAs) are responsible for monitoring standards in private properties rented out to benefit claimants. But, according to new evidence obtained by the CIEH under the Freedom of Information Act, four fifths of LHAs have never carried out a prosecution of a landlord.

Cutbacks have prompted fears that this situation is unlikely to improve given the amount of time and manpower a prosecution involves. But experts fear the need to tackle the issue of rogue landlords in the private sector will become more urgent in the coming months. The localism bill currently before parliament allows local authorities to discharge their duties to homeless people by using private rented accommodation, rather than social housing, without the applicant's agreement. Changes to the amount of housing benefit paid to claimants will also have an impact.

"With cuts to housing benefit and changes to the homelessness safety net, we are concerned there will be an influx of people pushed to the bottom end of the private rented sector which will lead to an imbalance between supply and demand for properties," Robb said. "This could see some rogue landlords exploiting the lack of accommodation, with the most vulnerable tenants left with little choice of who to rent from."

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Nobel chairman warns Europe's leaders over 'inflaming far-right sentiment'

David Cameron leaves the Norwegian embassy after signing the book of condolences for the victims of Norway attacks. Photograph: John Stillwell/AFP/Getty Images

Europe's leaders, including David Cameron, have been warned to adopt a more "cautious" approach when discussing multiculturalism. The Norwegian chairman of the Nobel peace prize committee has told them they risk inflaming far-right and anti-Muslim sentiment.

Thorbjorn Jagland, a former prime minister of his country, said leaders such as the British premier would be "playing with fire" if they continued to use rhetoric that could be exploited by extremists.

Four months ago in Munich, Cameron declared that state multiculturalism had failed in Britain, a view immediately praised by Nick Griffin, leader of the BNP, as "a further huge leap for our ideas into the political mainstream". Marine Le Pen, vice-president of the far-right National Front party in France, also endorsed Cameron's view of multiculturalism, claiming that it corroborated her own party's line.

Jagland's comments come in the wake of the Oslo bomb and the massacre on Utoya Island that left 77 people dead. The killer, Anders Behring Breivik, said he was inspired by the right-wing English Defence League. Breivik sent his manifesto, published online hours before the attacks, to about 250 British members of the BNP, the EDL and the Stop Islamisation of Europe group.

Jagland, who is also secretary general of the Council of Europe, told the Observer: "We have to be very careful how we are discussing these issues, what words are used.

"Political leaders have got to defend the fact that society has become more diverse. We have to defend the reality, otherwise we are going to get into a mess. I think political leaders have to send a clear message to embrace it and benefit from it.

"We should be very cautious now, we should not play with fire. Therefore I think the words we are using are very important because it can lead to much more."

Jagland has also urged leading politicians to change their terminology. He said the word "diversity" was better than multiculturalism because the latter had become defined in different ways by different groups. "We also need to stop using 'Islamic terrorism', which indicates that terrorism is about Islam. We should be saying that terrorism is terrorism and not linked to religion," said Jagland.

Over the years before his attacks, Breivik developed an ultra-radical stance that initially incorporated the forced repatriation of Muslims from Europe, but ultimately targeted Norway's centre-left government, which had encouraged multiculturalism. During his court appearance on terrorism charges, the 32-year-old said he had acted to prevent the "Muslim takeover" of Europe.

It hasemerged that during a 10-hour interrogation, Breivik told police that he also considered attacking other government and Labour party targets in Norway. Police attorney Paal-Fredrik Hjort Kraby revealed that Breivik had again asked interrogators how many people he had killed and "showed no emotion" when they told him.

As Norway struggles to come to terms with the killings, with the first of the dead being buried on Friday, the process of establishing whether Breivik is insane, as his lawyer has asserted, is due to begin. Psychiatrists said the process would involve months of observation, interviews and analysis, insisting that it is hard to fake mental illness. It has also emerged that more than 250 people were picked up by boats from the waters off Utoya Island as Breivik conducted his 90-minute shooting rampage. About 650 people were on the island, of whom at least 68 were killed, most of them teenagers.

During Cameron's Munich speech, which combined a passage on terrorism with one on integration, the prime minister talked extensively about "Islamist extremism" as being the source of terrorism.

Breivik saw David Miliband, Gordon Brown and Tony Blair as worthy of assassination because, according to his 1,500-page manifesto, they had a "friendly attitude" to immigrants.

Jagland says he has sympathy with Cameron's attempt to robustly promote a shared set of British values as an alternative to multiculturalism, if not with his delivery. "We are not searching for a society where we have only different cultures. We also need to have something that holds us together, to respect common values," he said.

Jagland, who last year gave the Nobel peace prize to jailed Chinese dissident Liu Xiaobo, who was represented by an empty chair at the ceremony in Oslo, added that the immigration debate also needed to be less negative.

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Public sector workers need 'discipline and fear', says Oliver Letwin

Oliver Letwin says he is determined to 'instil' fear among public sector workers to push productivity. Photograph: David Levene

Oliver Letwin, the coalition's policy minister, has revealed the government's determination to instil "fear" among those working in the public sector, who he claimed had failed for the past 20 years to improve their productivity.

Letwin, architect of the coalition's plans to reform public services, told a meeting at the offices of a leading consultancy firm that the public sector had atrophied over the past two decades.

In controversial comments angering teachers, nurses and doctors, he warned that it was only through "some real discipline and some fear" of job losses that excellence would be achieved in the public sector.

Letwin added that some of those running schools and hospitals would not survive the process and that it was an "inevitable and intended" consequence of government policy.

"You can't have room for innovation and the pressure for excellence without having some real discipline and some fear on the part of the providers that things may go wrong if they don't live up to the aims that society as a whole is demanding of them," he said.

"If you have diversity of provision and personal choice and power, some providers will be better and some worse. Inevitably, some will not, whether it's because they can't attract the patient or the pupil, for example, or because they can't get results and hence can't get paid. Some will not survive. It is an inevitable and intended consequence of what we are talking about."

Mark Serwotka, general secretary of the Public and Commercial Services Union (PCSU), reacted angrily to Letwin's comments, describing them as "nonsense".

He added: "Public sector workers are already working in fear – fear of cuts to their job, pension, living standards and of privatisation. Far from improving productivity, the cuts are creating chaos in vital public services."

Letwin was speaking at the launch of a liberal thinktank's report at the London headquarters of KPMG, one of the biggest recipients of government cash, which won the first contract for NHS commissioning following the decision to scrap primary care trusts and further open the health service to private companies.

Letwin's recent white paper on public sector reform had been dismissed as watered down earlier this month amid speculation that the Liberal Democrats had vetoed radical change. But Letwin said on Wednesday that he believed he was prosecuting "the most ambitious set of public service reforms that any government in modern Britain has undertaken", adding that productivity had improved across the economy except in the public sector in the past 20 years.

A spokesman for the Office for National Statistics (ONS) said he did not know where Letwin had sourced his figures. However, an ONS analysis that works back to 1997, shows that productivity in public services fell on average by 0.3% a year between 1997 and 2008 because the level of inputs, such as staff and equipment, increased faster than the output, such as operations performed and numbers of pupils taught.

Harriet Harman, Labour's deputy leader, said last night that she did not recognise Letwin's portrayal of the public sector. "Death rates in hospitals have been falling, satisfaction levels have been rising," she said. "What hasn't changed is the Tories' antipathy to public services. And the idea that the way to improve public services is to put fear into those who provide them is absolutely grotesque."

A Cabinet Office spokesperson said: "It is widely acknowledged that there is a problem with productivity in public services. The government's policy is to improve it and provide the best value for the taxpayer."

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England v India - live! | Rob Smyth and Rob Bagchi

England's Stuart Broad acknowledges the applause of the crowd after his hat-trick against India at Trent Bridge. Photograph: Jon Super/AP"Good morning," says John Starbuck. "It's been announced that Trott will bat though no-one knows what position yet." Crikey, that is a surprise. No10 or 11?

Thought for the day This series is going to kick off very soon, isn't it?

Trottwatch He faced only two balls in practice this morning before going off for an injection. It seems very unlikely he will bat.

Preamble Morning. These days everyone wants to be FIRST! We're a culture obsessed with the first: first impression, first match of the season, first meal (Paulie Walnuts says breakfast is the most important meal of the day, and wise men don't argue with Paulie), first date, first injunction, first pint after eight hours kissing the feet of The Man. In some contexts, however, the second is far more important. For example, a monstrous slab of lunchtime meat at The Hawksmoor trumps Frosties anyday, although you can tell Paulie that. Similarly, the second set of a tennis match is surely the most significant, when the contest is almost completed at 2-0 or comes alive at 1-1.

That's the scenario we have at Trent Bridge today, where an excellent Test match will probably be decided, if not actually completed. Either England go 2-0 up or India level it at 1-1 with power, Sehwag and Zaheer to add. The English cricket lover in me is desperate for England to win; the Test cricket lover in me is equally desperate for India to win. Think about how empty 2005 would have been had Australia gone 2-0 up at Edgbaston, and not just because England were losing.

Six years ago we had the best of both worlds – an epic series and an England win. So this time we want India to win here, England to win by one wicket at Edgbaston and then by one run at The Oval, thus clinching the series 3-1 and going top of the Test Championship. Is that so much to ask?

All that said, I suppose we could live with England winning by 114 runs here after a staggering 121-ball 132 from Eoin Morgan.

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Bailout rescue: euphoria wanes as doubts emerge

The German chancellor, Angela Merkel, said she was confident that the Bundestag would vote through the Greek rescue package. Photograph: John Macdougall/AFP/Getty Images

A rally on European stock markets evaporated on Friday night as investors began to voice concerns about whether the eurozone rescue plan for Greece would be enough to stem the currency bloc's debt crisis.

One leading investment strategist described the new deal as "less sticking plaster and more of a proper bandage", but warned the underlying problems in the Greek economy had not been addressed. Another said the voluntary 21% "haircut" agreed by the banks was less than a third of what was required.

The credit ratings agency Fitch added to worries over the deal after it declared Greece would be in temporary default as the result of the €109bn (?96bn) bailout. The move is likely to be matched by rival ratings agencies.

The FTSE 100 finished up just 35 points at 5935, adding to small gains on the main French and German exchanges following a volatile day that saw most shares sink before a moderate recovery. Markets had initially cheered the deal and pushed up US stock prices overnight.

British and German government bonds, considered a safe haven, ended higher as investors started to have doubts about the scheme, which involves offering Greece, Ireland and Portugal longer to pay off their loans and a cut in interest payments.

Greece was also offered a relatively small one-off reduction in the value of its outstanding loans that will reduce its debt-to-GDP ratio from the 160% it was expected to reach before 2015.

French prime minister Francois Fillon said the deal guaranteed there would be no default by member states in the 17-nation bloc. However, comments by German banking bosses that the deal would need to be examined added to the air of uncertainty.

Germany's BdB association of private banks said that while an agreement was "an important step," the industry needed more information on its involvement.

The Institute of International Finance, which led talks for private investors, said 90% of creditors will sign up. Deutsche Bank, HSBC, BNP Paribas, Allianz and Axa are among the firms ready to support it.

Holders of Greek debt who are not on the institute's list of supportive firms include Royal Bank of Scotland, Italy's Unicredit and the French Credit Agricole banking group.

The offer is voluntary, raising the possibility that some investors, such as hedge funds, will not participate and wait to be repaid at the full price.

Standard Life said the deal was a positive move but it would continue to shun European shares and sovereign bonds, leaving it underweight in both.

Richard Batty, the fund manager's global investment strategist, said the bailout package still failed to tackle the economic situation in Greece and other debt-laden countries: "This programme is less sticking plaster and more of a proper bandage but that still doesn't deal with the underlying issues. You have to make these ex-growth economies like Greece and Italy more productive and able to compete in global markets. Without higher productivity and growth it will prove difficult to pay down debts, even with the improved deal."

Gary Jenkins, head of fixed income research at Evolution, argued the compromise to limit private sector bank losses to 21% was not enough to save Greece from years of austerity: "We have long thought that the most likely outcome for Greek bondholders would be that they would take a small haircut first followed by a larger one at a later date.

"To give Greece a fighting chance they probably need a writedown close to 65%," he said.

Analysts also warned that the need to put the package to a vote in the parliaments of each eurozone member state meant the deal could yet be derailed.

"Some of the euphoria that was in the market as the result of [Thursday's] events has eased off a little bit," said Eric Wand, strategist at Lloyds Corporate Markets.

"Some of the measures that were announced have still got to be passed by national parliaments – particularly with regard to the EFSF [European Financial Stability Facility]. And there may be some concerns about the sustainability of the debt situation given the easing growth backdrop," Wand added.

Germany's Angela Merkel said she was confident the Bundestag would vote through the package after she secured private sector involvement against French fears it would trigger a mass withdrawal of private funds across the eurozone.

France's BNP Paribas is set to take the biggest hit of around €950m, as the largest holder of Greek government debt outside the country.

Fillon said France's debt would increase by €15bn by 2014 taking into account the cost of providing a guarantee. The increase in debt raises the risk that France may overshoot the government's debt targets, which foresee a peak at 87% of GDP in 2012.

Ireland said the reduction in interest rates and extension on much of its lending could save €1bn a year in costs. Prime minister Enda Kenny thanked UK chancellor of the exchequer George Osborne for matching the eurozone plan with a reduction to 3.5% on the interest payments of a separate loan Britain offered last year.

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