GOP Leader McConnell: 'Tax Issue Is Finished'


Jan 6, 2013 10:19am







abc mitch mcconnell this week jt 130106 wblog Sen. Mitch McConnell: The Tax Issue Is Finished

                                                                                                            (Image Credit: ABC News)


Senate Republican Leader Mitch McConnell. R-Ky., Sunday said he will not accept any new revenue in future deals with congressional Democrats and President Obama.


“The tax issue is finished.  Over. Completed,” McConnell told me on “This Week.” “That’s behind us. Now the question is what are we going to do about the biggest problem confronting our country and that’s our spending addiction.


“We didn’t have this problem because we weren’t taxing enough,” McConnell added.


He blamed Obama and Democrats for waiting to resolve budget issues until the last minute.


Read a transcript of the full interview with Sen. Mitch McConnell HERE.


“Why we end up in these last-minute discussions is beyond me. We need to function,” McConnell said. “I mean, the House of Representatives, for example, passed a budget every year.  They’ve passed appropriation bills.


“The Senate Democratic majority and the president seem to like these last-minute deals.”


McConnell said that the biggest issue facing the country in the next year is the deficit and spending. And he predicted that the issue would occupy the congressional agenda in the first three months of the year, overtaking Obama’s other priorities, including gun control.


“But the biggest problem we have at the moment is spending and debt,” McConnell said. “That’s going to dominate the Congress between now and the end of March.  None of these issues, I think, will have the kind of priority that spending and debt are going to have over the next two or three months.”


On the expected nomination of former Sen. Chuck Hagel, R-Neb., as the secretary of Defense by Obama, McConnell said he would evaluate Hagel’s past statements before determining whether he could support his nomination in the Senate.


“I’m going to take a look at all the things that Chuck has said over the years and review that, and in terms of his qualifications to lead our nation’s military,” McConnell said. “The question we will be answering if he’s the nominee, is do his views make sense for that particular job?  I think he ought to be given a fair hearing, like any other nominee, and he will be.”


McConnell, who in 2008 praised Hagel for his clear voice and stature on foreign policy and national security, now says he will reserve judgment on his possible nomination until after a Senate confirmation hearing.


“I’m going to wait and see how the hearings go and see whether Chuck’s views square with the job he would be nominated to do,” he added.


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Venezuela lawmakers elect Chavez ally as Assembly chief


CARACAS (Reuters) - Venezuelan lawmakers re-elected a staunch ally of Hugo Chavez to head the National Assembly on Saturday, putting him in line to be caretaker president if the socialist leader does not recover from cancer surgery.


By choosing the incumbent, Diosdado Cabello, the "Chavista"-dominated legislature cemented the combative ex-soldier's position as the third most powerful figure in the government, after Chavez and Vice President Nicolas Maduro.


"As a patriot ... I swear to be supremely loyal in everything I do, to defend the fatherland, its institutions, and this beautiful revolution led by our Comandante Hugo Chavez," Cabello said as he took the oath, his hand on the constitution.


He had earlier warned opposition politicians against attempting to use the National Assembly to "conspire" against the people, saying they would be "destroyed" if they tried.


Thousands of the president's red-clad supporters gathered outside parliament hours before the vote, many chanting: "We are all Chavez! Our comandante will be well! He will return!"


If Chavez had to step down, or died, Cabello would take over the running of the country as Assembly president and a new election would be organized within 30 days. Chavez's heir apparent, Maduro, would be the ruling Socialist Party candidate.


Chavez, who was diagnosed with an undisclosed form of cancer in his pelvic area in mid-2011, has not been seen in public nor heard from in more than three weeks.


Officials say the 58-year-old is in delicate condition and has suffered multiple complications since the December 11 surgery, including unexpected bleeding and severe respiratory problems.


Late on Friday, Maduro gave the clearest indication yet that the government was preparing to delay Chavez's inauguration for a new six-year term, which is scheduled for Thursday.


'CHAVEZ IS PRESIDENT'


Maduro said the ceremony was a "formality" and that Chavez could be sworn in by the Supreme Court at a later date.


The opposition says Chavez's absence would be just the latest sign that he is no longer fit to govern, and that new elections should be held in the South American OPEC nation.


Brandishing a copy of the constitution after his win in the Assembly, Cabello slammed opposition leaders for writing a letter to foreign embassies in which they accused the government of employing a "twisted reading" of the charter.


"Get this into your heads: Hugo Chavez was elected president and he will continue to be president beyond January 10. No one should have any doubt ... this is the constitutional route," he said as fellow Socialist Party lawmakers cheered.


The opposition sat stony-faced. One of their legislators had earlier told the session that it was not just the head of state who was ill, "the republic is sick."


Last year, Chavez staged what appeared to be a remarkable comeback from the disease to win re-election in October, despite being weakened by radiation therapy. He returned to Cuba for more treatment within weeks of his victory.


Should the president have to step down after 14 years in office, a new vote would probably pit Maduro, a 50-year-old former bus driver and union leader, against opposition leader Henrique Capriles, the 40-year-old governor of Miranda state.


Capriles lost to Chavez in October's presidential election.


"I don't think Maduro would last many rounds in a presidential race. He's not fit for the responsibility they have given him," Capriles said after the vice president's appearance on state television.


Chavez's condition is being watched closely by leftist allies around Latin American who have benefited from his oil-funded generosity, as well as investors attracted by Venezuela's lucrative and widely traded debt.


The country boasts the world's biggest crude reserves. Despite the huge political upheaval Chavez's exit would cause, the oil industry is not likely to be affected much in the short term, with an extension of "Chavismo" keeping projects on track, while a change in parties could usher in more foreign capital.


(Additional reporting by Deisy Buitrago; Editing by Vicki Allen)



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IMF chief praises Malawi reforms for economic recovery






LILONGWE, Malawi: IMF chief Christine Lagarde on Saturday praised Malawi's President Joyce Banda for "bold" economic recovery reforms, saying the measures will lead to a turn-around despite their unpopularity.

"Notwithstanding the current hardships, many of my interlocutors were confident the ongoing reforms will turn the economy around, an optimism that I share," said Lagarde, wrapping up an official visit to Malawi.

During her trip, Lagarde has praised the reforms which she said had restored stability after Banda inherited a serious crisis characterised by foreign exchange shortages that crippled key imports such as fuel.

Banda has overseen the devaluation of the kwacha currency by 50 percent, the easing of foreign exchange restrictions, and the raising of fuel prices and cutting of subsidies since taking office last April.

Criticised at home for floating the currency under pressure from the International Monetary Fund, she has assured that "there will be no backtracking".

"I welcome government efforts to address unforeseen challenges through her continued commitment to economic reforms," Lagarde, the fund's managing director, said in a statement.

She said the country had already made "significant progress" in addressing serious imbalances that were hampering economic growth just a few months ago.

Lagarde said during meetings with Banda, she stressed the "need to stay the course, while putting in place social protection programmes to alleviate the impact of adjustment measures on the poorest households."

She said Malawi's recent economic situation has been difficult, adding that drought and lower than expected foreign exchange earnings had "dampened growth and contributed to a spike in inflation in 2012."

Earlier on Saturday Lagarde stressed the need for Malawi to diversify its economy, saying a reliance on agriculture left the country and its economic recovery vulnerable.

"Following these reforms, the economic wheels started spinning again. But progress is threatened anew by a slump in agriculture," she said, with the sector accounting 30 percent of GDP and tobacco nearly half of export earnings.

The fund has halved its 2012 growth forecast for the impoverished nation to around two percent but predicts a rate of 5.5 percent this year.

Private sector investment must be made easier and poor infrastructure in areas such as electricity and transport upgraded, she said, with Malawi scoring 129 out of 144 countries in the World Economic Forum's Global Competitiveness Index.

The IMF, one of the main backers of the country's reforms, gave Malawi a three-year $157 million loan package in June after ties had broken down amid a spree of global aid suspensions under president Bingu wa Mutharika.

In 2011, the global lender suspended a $79.4 million credit facility during the administration of the late leader who died last year.

Donors provide up to 40 percent of the development budget and salaries for nearly 170,000 civil servants.

Under Mutharika, relations with the IMF had become tense after he refused to devalue the currency as the global lender had advised, arguing it would trigger inflation and hurt the poor. In Malawi, 39 percent of the 13 million population live on less than a dollar a day.

Several key donors, including former colonial power Britain, suspended aid, citing concerns about growing authoritarian tendencies in Mutharika's government.

- AFP/de



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Zee News editor seeks video-recording of police statement

NEW DELHI: Zee News editor Sudhir Chaudhary, whom police has sent notice to join investigations after the channel aired the interview of December 16 rape victim's friend, on Saturday moved court seeking his statement be video-recorded but the order was silent on his request.

The court asked the city police to proceed the case "in accordance with the law" and did not specially mention in its order whether Chaudhary's statement would be recorded or not.

Metropolitan Magistrate Namrita Aggarwal said: "I have heard the counsel for the accused. SHO police station Vasant Vihar is directed to proceed as per law."

Chaudhary has moved the application saying he has been asked to join the investigation and a case has already been registered against him.

Advocate Vijay Aggarwal, appearing for Chaudhary, submitted that police has sent notice to his client to attend investigation.

"The applicant has received notice for attending investigation at Vasant Vihar police station. He prays that his statement made under section 161 (3) CrPC (Criminal Procedure Code) be recorded by audio video electronic means."

"The interview of the male friend had highlighted the irresponsible attitude of police towards the victims, so how can the same police register the case again the channel and also investigate it. It cannot be a fair investigation," said Aggarwal.

Delhi Police have filed a case against Zee News for revealing the identity of the gang-rape victim by carrying an interview of her male friend who was the only witness in the case.

The case was filed against at Vasant Vihar Police Station under Section 228 (A) of the Indian Penal Code. The interview of male friend would lead to the identification of the victim in breach of a law entitling her to anonymity, police said.

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FDA: New rules will make food safer


WASHINGTON (AP) — The Food and Drug Administration says its new guidelines would make the food Americans eat safer and help prevent the kinds of foodborne disease outbreaks that sicken or kill thousands of consumers each year.


The rules, the most sweeping food safety guidelines in decades, would require farmers to take new precautions against contamination, to include making sure workers' hands are washed, irrigation water is clean, and that animals stay out of fields. Food manufacturers will have to submit food safety plans to the government to show they are keeping their operations clean.


The long-overdue regulations could cost businesses close to half a billion dollars a year to implement, but are expected to reduce the estimated 3,000 deaths a year from foodborne illness. The new guidelines were announced Friday.


Just since last summer, outbreaks of listeria in cheese and salmonella in peanut butter, mangoes and cantaloupe have been linked to more than 400 illnesses and as many as seven deaths, according to the federal Centers for Disease Control and Prevention. The actual number of those sickened is likely much higher.


Many responsible food companies and farmers are already following the steps that the FDA would now require them to take. But officials say the requirements could have saved lives and prevented illnesses in several of the large-scale outbreaks that have hit the country in recent years.


In a 2011 outbreak of listeria in cantaloupe that claimed 33 lives, for example, FDA inspectors found pools of dirty water on the floor and old, dirty processing equipment at Jensen Farms in Colorado where the cantaloupes were grown. In a peanut butter outbreak this year linked to 42 salmonella illnesses, inspectors found samples of salmonella throughout Sunland Inc.'s peanut processing plant in New Mexico and multiple obvious safety problems, such as birds flying over uncovered trailers of peanuts and employees not washing their hands.


Under the new rules, companies would have to lay out plans for preventing those sorts of problems, monitor their own progress and explain to the FDA how they would correct them.


"The rules go very directly to preventing the types of outbreaks we have seen," said Michael Taylor, FDA's deputy commissioner for foods.


The FDA estimates the new rules could prevent almost 2 million illnesses annually, but it could be several years before the rules are actually preventing outbreaks. Taylor said it could take the agency another year to craft the rules after a four-month comment period, and farms would have at least two years to comply — meaning the farm rules are at least three years away from taking effect. Smaller farms would have even longer to comply.


The new rules, which come exactly two years to the day President Barack Obama's signed food safety legislation passed by Congress, were already delayed. The 2011 law required the agency to propose a first installment of the rules a year ago, but the Obama administration held them until after the election. Food safety advocates sued the administration to win their release.


The produce rule would mark the first time the FDA has had real authority to regulate food on farms. In an effort to stave off protests from farmers, the farm rules are tailored to apply only to certain fruits and vegetables that pose the greatest risk, like berries, melons, leafy greens and other foods that are usually eaten raw. A farm that produces green beans that will be canned and cooked, for example, would not be regulated.


Such flexibility, along with the growing realization that outbreaks are bad for business, has brought the produce industry and much of the rest of the food industry on board as Congress and FDA has worked to make food safer.


In a statement Friday, Pamela Bailey, president of the Grocery Manufacturers Association, which represents the country's biggest food companies, said the food safety law "can serve as a role model for what can be achieved when the private and public sectors work together to achieve a common goal."


The new rules could cost large farms $30,000 a year, according to the FDA. The agency did not break down the costs for individual processing plants, but said the rules could cost manufacturers up to $475 million annually.


FDA Commissioner Margaret Hamburg said the success of the rules will also depend on how much money Congress gives the chronically underfunded agency to put them in place. "Resources remain an ongoing concern," she said.


The farm and manufacturing rules are only one part of the food safety law. The bill also authorized more surprise inspections by the FDA and gave the agency additional powers to shut down food facilities. In addition, the law required stricter standards on imported foods. The agency said it will soon propose other overdue rules to ensure that importers verify overseas food is safe and to improve food safety audits overseas.


Food safety advocates frustrated over the last year as the rules stalled praised the proposed action.


"The new law should transform the FDA from an agency that tracks down outbreaks after the fact, to an agency focused on preventing food contamination in the first place," said Caroline Smith DeWaal of the Center for Science in the Public Interest.


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4 Dead After Aurora, Colo., SWAT Standoff













Four people were killed, including the gunman, during a hostage standoff this morning at a townhouse in Aurora, Colo., police said.


Police pumped tear gas into the home in an attempt to get the gunman to leave, and then went into the home and shot him, ABC News Denver affiliate KMGH-TV reported.


The three people found dead in the home are believed to be relatives of the shooter, Aurora Police Sgt. Cassidee Carlson told KMGH. A fourth person was found unharmed, she said.


Officers responded to the home after the first reports of gunshots came in around 3 a.m.








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The suspected gunman was found dead inside the townhome at 9 a.m., but police were not sure when he had been shot by officers or killed himself, she said.


"We're just getting in there with our crime scene detectives, so obviously we'll have to determine if it was our rounds or his rounds," Carlson said. "This is a big investigation, and a lot is entailed."


Carlson said neighboring residences were evacuated while the SWAT team attempted to resolve the standoff.


"We've evacuated several residences in the neighboring townhomes and in the immediate area where we believed would be the most dangerous," Carlson told KMGH-TV earlier today.


The Colorado town was the site of a movie theater massacre last July. A gunman opened fire during a midnight screening of "The Dark Knight Rises," killing 12 people and injuring 58 others.



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Abbas sees Palestinian unity as Fatah rallies in Gaza


GAZA (Reuters) - President Mahmoud Abbas predicted the end of a five-year split between the two big Palestinian factions as his Fatah movement staged its first mass rally in Gaza with the blessing of Hamas Islamists who rule the enclave.


"Soon we will regain our unity," Abbas, whose authority has been limited to the Israeli-occupied West Bank since the 2007 civil war between the two factions, said in a televised address to hundreds of thousands of followers marching in Gaza on Friday, with yellow Fatah flags instead of the green of Hamas.


The hardline Hamas movement, which does not recognize Israel's right to exist, expelled secular Fatah from Gaza during the war. It gave permission for the rally after the deadlock in peace talks between Abbas's administration and Israel narrowed the two factions' ideological differences.


The Palestinian rivals have drawn closer since Israel's assault on Gaza assault in November, in which Hamas, though battered, claimed victory.


Egypt has long tried to broker Hamas-Fatah reconciliation, but past efforts have foundered over questions of power-sharing, control of weaponry, and to what extent Israel and other powers would accept a Palestinian administration including Hamas.


An Egyptian official told Reuters Cairo was preparing to invite the factions for new negotiations within two weeks.


Israel fears grassroots support for Hamas could eventually topple Abbas's Palestinian Authority (PA) in the West Bank.


"Hamas could seize control of the PA any day," Israeli Prime Minister Benjamin Netanyahu said on Thursday.


The demonstration marked 48 years since Fatah's founding as the spearhead of the Palestinians' fight against Israel. Its longtime leader Yasser Arafat signed an interim 1993 peace accord that won Palestinians a measure of self rule.


Hamas, which rejected the 1993 deal, fought and won a Palestinian parliamentary election in 2006. It formed an uneasy coalition with Fatah until their violent split a year later.


Though shunned by the West, Hamas feels bolstered by electoral gains for Islamist movements in neighboring Egypt and elsewhere in the region - a confidence reflected in the fact Friday's Fatah demonstration was allowed to take place.


"The success of the rally is a success for Fatah, and for Hamas too," said Hamas spokesman Sami Abu Zuhri. "The positive atmosphere is a step on the way to regain national unity."


Fatah, meanwhile, has been riven by dissent about the credibility of Abbas's statesmanship, especially given Israel's continued settlement-building on West Bank land. The Israelis quit Gaza unilaterally in 2005 after 38 years of occupation.


"The message today is that Fatah cannot be wiped out," said Amal Hamad, a member of the group's ruling body, referring to the demonstration attended by several Abbas advisers. "Fatah lives, no one can exclude it and it seeks to end the division."


In his speech, Abbas promised to return to Gaza soon and said Palestinian unification would be "a step on the way to ending the (Israeli) occupation".


(Editing by Dan Williams, Alistair Lyon and Jason Webb)



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Oil prices mixed; WTI up on US crude supply drop






NEW YORK: Oil prices were mixed Friday, with the New York WTI higher on data showing crude supplies unexpectedly shrank sharply in the United States, the world's biggest oil consumer.

New York's main West Texas Intermediate contract, light sweet crude for delivery in February, rose 17 cents from Thursday to close at US$93.09 a barrel.

In London trade, Brent North Sea crude for February settled at US$111.31 a barrel, down 83 cents.

The New York market found support after the US Department of Energy's weekly petroleum inventories statement, said Bill Baruch of iiTrader.com.

"The crude inventories was a big draw; however the gasoline was a big build," Baruch said.

Crude supplies dived by 11.1 million barrels in the week ended December 28, much more than the 1.0 million consensus estimate of analysts polled by Dow Jones Newswires.

Still, US crude supplies were 9.2 per cent higher than their year-ago level.

Gasoline supplies rose by a stronger-than-expected 2.6 million barrels, and distillates, which include diesel and heating oil, climbed by 4.6 million barrels.

Investors also digested an in-line US jobs report for December that showed job growth remained too slow to significantly reduce unemployment.

The jobless rate was unchanged at 7.8 per cent and a modest 155,000 were added last month, according to the US Labor Department.

Earlier, WTI and Brent prices were sharply lower after minutes of the December US Federal Reserve policy meeting, released Thursday, showed central bank officials were divided over the duration of asset purchases, signalling they could end as early as this year.

"Prices were... driven down following the move by the US Federal Reserve to signal a possible end to fiscal stimulus this year, which has raised concern that the economic recovery may falter," said Inenco energy analyst Gary Hornby.

- AFP/jc



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Aruna Roy objects to direct cash transfer

NEW DELHI: National Advisory Council (NAC) member and MKSS leader Aruna Roy on Friday shot off a scathing letter to the finance ministry objecting to "talk" of subsidy cuts for the poor while funding programmes like Aadhar that have no legislative backing. She also suggested that pre-budget consultations for business and social sector should be held jointly in a more democratic fashion.

Expressing "shock" at subsidy cuts Roy, who did not attend Friday's meeting with the finance ministry, said, " In a country that has fuelled its economic growth through exploitation of common property resources and the labour of the poor, to not have a tax to GDP ratio that is substantially higher only makes it clear that for India's unorganized sector the candle is burning on both ends. Enough has already been said about the undiminished tax subsidies to the corporate sector, which will I am sure will be meeting you with increased demands."

Suggesting that the business and social sector be met with jointly rather than "pigeon-holed" Roy said that banking heavily on cash transfers through the Aadhar scheme was a "huge mistake". "The government is making a huge mistake in pushing Aadhaar and making it mandatory, without ensuring its viability. Glaring mismatches have already begun at the grass root level and the system being imposed is undemocratic and injudicious. Any further investment without proper and complete examination will undoubtedly lead to confirmed disaster," she added.

Stressing that NREGS, food security bill and old age pension required the priority of the government, Roy said that the government was "steam rolling" opposition. "Yours was a government that empowered people to monitor government through the right to information act. Instead of showing the political will to act on demands for accountability, this government is proceeding on the assumption that technology will be the "game changer." It is not that we oppose technology or even blindly oppose the use of technology for monitoring of welfare programmes. Many of us feel that it is not been adequately discussed, or rationally evaluated; instead all opposition and even questions are being steam rolled."

She added that she was "extremely distressed" the food security bill has been pushed into cold storage and the contrary path of cash transfers is being relentlessly pursued.

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FDA proposes sweeping new food safety rules


WASHINGTON (AP) — The Food and Drug Administration on Friday proposed the most sweeping food safety rules in decades, requiring farmers and food companies to be more vigilant in the wake of deadly outbreaks in peanuts, cantaloupe and leafy greens.


The long-overdue regulations are aimed at reducing the estimated 3,000 deaths a year from foodborne illness. Just since last summer, outbreaks of listeria in cheese and salmonella in peanut butter, mangoes and cantaloupe have been linked to more than 400 illnesses and as many as seven deaths, according to the Centers for Disease Control. The actual number of those sickened is likely much higher.


The FDA's proposed rules would require farmers to take new precautions against contamination, to include making sure workers' hands are washed, irrigation water is clean, and that animals stay out of fields. Food manufacturers will have to submit food safety plans to the government to show they are keeping their operations clean.


Many responsible food companies and farmers are already following the steps that the FDA would now require them to take. But officials say the requirements could have saved lives and prevented illnesses in several of the large-scale outbreaks that have hit the country in recent years.


In a 2011 outbreak of listeria in cantaloupe that claimed 33 lives, for example, FDA inspectors found pools of dirty water on the floor and old, dirty processing equipment at Jensen Farms in Colorado where the cantaloupes were grown. In a peanut butter outbreak this year linked to 42 salmonella illnesses, inspectors found samples of salmonella throughout Sunland Inc.'s peanut processing plant in New Mexico and multiple obvious safety problems, such as birds flying over uncovered trailers of peanuts and employees not washing their hands.


Under the new rules, companies would have to lay out plans for preventing those sorts of problems, monitor their own progress on those safety efforts and explain to the FDA how they would correct them.


"The rules go very directly to preventing the types of outbreaks we have seen," said Michael Taylor, FDA's deputy commissioner for foods.


The FDA estimates the new rules could prevent almost 2 million illnesses annually, but it could be several years before the rules are actually preventing outbreaks. Taylor said it could take the agency another year to craft the rules after a four-month comment period, and farms would have at least two years to comply — meaning the farm rules are at least three years away from taking effect. Smaller farms would have even longer to comply.


The new rules, which come exactly two years to the day President Barack Obama's signed food safety legislation passed by Congress, were already delayed. The 2011 law required the agency to propose a first installment of the rules a year ago, but the Obama administration held them until after the election. Food safety advocates sued the administration to win their release.


The produce rule would mark the first time the FDA has had real authority to regulate food on farms. In an effort to stave off protests from farmers, the farm rules are tailored to apply only to certain fruits and vegetables that pose the greatest risk, like berries, melons, leafy greens and other foods that are usually eaten raw. A farm that produces green beans that will be canned and cooked, for example, would not be regulated.


Such flexibility, along with the growing realization that outbreaks are bad for business, has brought the produce industry and much of the rest of the food industry on board as Congress and FDA has worked to make food safer.


In a statement Friday, Pamela Bailey, president of the Grocery Manufacturers Association, which represents the country's biggest food companies, said the food safety law "can serve as a role model for what can be achieved when the private and public sectors work together to achieve a common goal."


The farm and manufacturing rules are only one part of the food safety law. The bill also authorized more surprise inspections by the FDA and gave the agency additional powers to shut down food facilities. In addition, the law required stricter standards on imported foods. The agency said it will soon propose other overdue rules to ensure that importers verify overseas food is safe and to improve food safety audits overseas.


Food safety advocates frustrated over the last year as the rules stalled praised the proposed action.


"The new law should transform the FDA from an agency that tracks down outbreaks after the fact, to an agency focused on preventing food contamination in the first place," said Caroline Smith DeWaal of the Center for Science in the Public Interest.


Read More..