EU summit postponed after president quarantined – as it happened
EU summit postponed after president quarantined – as it happened
A national public health campaign promoting the flu vaccine is urgently needed to avoid stretched healthcare services being overwhelmed this winter as the US faces cold season while still struggling to gain control of the coronavirus pandemic, scientists have warned.

Influenza or seasonal flu is a perennial public health burden that, like Covid-19, causes most severe problems among elderly people and those with underlying health conditions.

During the winter of 2018-2019, about 35.5 million people in the US got sick with flu, almost half a million were hospitalized and 34,200 died, according to the Centers for Disease Control and Prevention (CDC):

Call By More Than 250 European And Arab Lawmakers To Implement UN Sanctions On Iran
Call By More Than 250 European And Arab Lawmakers To Implement UN Sanctions On Iran

 The British Committee for Iran Freedom (BCFIF) issued the

following press release with regards to a statement
supported by more than 250 European and Arab lawmakers
urging their respective governments to implement all UN
sanctions on Iran.

The lawmakers from European and
Arab countries support the snapback of all UN sanctions
under UN Security Council resolution 2231 against Iran
urging their respective governments to take necessary steps
to implement all punitive measures especially an arms
embargo.

In their statement, the cross-party
signatories from 23 countries including the United Kingdom,
France, Italy, Ireland, Portugal, Belgium, Lithuania,
Romania, and Switzerland, Jordan and Egypt as well as the
European Parliament, call for the international designation
of the Islamic Revolutionary Guard Corps (IRGC) as a
terrorist organisation and its disbanding, referring to its
role in the internal crackdown, especially on popular
protests, and a series of terrorist plots against the
pro-democracy opposition, the National Council of Resistance
of Iran (NCRI), and Iranian dissidents in Europe.

The
statement also urges the European and Arab governments to
heed the voice of the Iranian people and support their
democratic aspirations and demand for change on display
during continuous popular protests in the last three
years.

The Rt. Hon David Jones MP said,
“The UK, France, and Germany are mistaken in their
adherence to the flawed nuclear deal that does not hold the
regime to account. It emboldens the regime to continue its
domestic crackdown and export terrorism across the region. I
stress that the UK should support the re-imposition of
sanctions on the regime and an international inquiry into
the 1988 massacre of 30,000 political prisoners, primarily
activists of the People’s Mojahedin Organisation of Iran
(PMOI/MEK) in Iran.”

Bob Blackman MP
pointed out, “An Iranian diplomat awaits prosecution in
Belgium for his alleged role in a bomb plot against the
gathering of the Iranian opposition NCRI in Paris in 2018”
and added, “the UK and other European governments should
scrutinise the Iranian diplomats working in their countries
and consider expelling them and if necessary close down
those embassies given that the regime’s use of diplomatic
cover for its terrorist activities is both known and
well-document.”

Steve McCabe MP said, “with the
recent brutal crackdown on protesters and execution of the
Iranian wrestler champion Navid Afkari, the regime in Iran
reaffirms its pariah status and disregard for international
human rights law and the fundamental rights of the Iranian
people. Dialogue with the regime at this moment is
fruitless. The international community must move to fully
implement the UN sanctions against the regime in Iran and
secure a UN inquiry into its current and past human rights
violations.”

Sir David Amess MP, the co-chairman of
the British Committee for Iran Freedom (BCFIF) stressed,
“The UN sanctions and Security Council resolution against
Iran must be implemented immediately in order to counter
regime’s terrorism and destabilising activities in the
region and the world. But, the ultimate solution to these
threats from Tehran lies in the hands of the Iranian people
and their pro-democracy Resistance movement led by Mrs Madam
Rajavi, who struggle for a free and democratic Iran. I urge
the international community, including the UK Government, to
recognise and support this viable Iranian democratic
alternative.”

© Scoop Media

The erosion of marriage - ABC Online
The erosion of marriage – ABC Online

Professor Patrick Parkinson AM is presenting the 2020 New College Lectures on the topic, “Faith and Family in a Multicultural Society.” This is a slightly edited version of the first lecture, which was delivered on Tuesday, 22 September 2020. The subsequent lectures will be published on this site next week.

There has never been a golden age for marriage and family life in Australia, or as far as I know, anywhere else. There has never been a time when all families were either happy or safe. There never was a time when family life was free of the scourge of domestic violence or when children were safe from sexual abuse by their fathers, uncles or grandfathers. There never was a time, I suspect, when the vast majority of married men were faithful to their wedding vows and did not stray from them. There was never a time when most people married for love and stayed in love for better or for worse, for richer and for poorer, in sickness or in health until death parted them. There never was a time when men did not, at least sometimes, behave badly; and there never was a time when women did not, at least sometimes, behave badly as well.

We must never confuse the ideal of marriage with the facts on the ground, the warts and all experience of family life across society and down through the generations. Christian teaching has long emphasised that we are sinful people in need of a Saviour, that we are capable of great evil, as well as great good. If you try to go through life under the illusion that people are basically good you will experience endless disappointment and betrayal.

So no, there never was a golden age of marriage. We should not romanticise the past.

If there was not a golden age of marriage, there was at least a golden idea of marriage, based upon Christian teaching. What is that teaching? An excellent summary is in just three sentences of the teaching of Jesus. To quote from Mark 10:6-8:

At the beginning of creation God made them male and female. For this reason a man will leave his father and mother and be united to his wife, and the two will become one flesh. So they are no longer two, but one.

In this we see the critical order of marriage formation. A man must leave, he must join with his wife, and they must become one. Of course, the wife must do the same. She must leave her father and mother, she must be united to her husband, and become one with him.

In that, there is profound wisdom. The act of leaving is essential. Men and women need to leave behind their family of origin, need to leave their parents and establish something new. And parents need to give their children up to the new family which is being formed in that marriage ceremony. The tradition of the father giving away the bride is symbolic of this important step of letting go, giving up. The mother too must give up her son, allow his new wife to establish her own way of running the household that may well differ in material ways from the way she ran her own household. From two different families of origin comes a new family, neither a replica of one nor of the other, just as the children to be born from that union will have their own individuality.

Consequent upon leaving, the husband and wife must unite. They are now one entity, one unit, and no longer can either the husband or wife think selfishly. No longer is it about his interests, his needs, his desires. It must just as much be about her interests, needs, and desires. He must love her as much as he loves himself — and she must love him in the same way.

That call to lose one’s individual identity in the collectivity of the marriage is now utterly counter-cultural. We are so obsessed with our individual rights and needs that the idea that in some way we should lose our identity in marriage is hard to comprehend; but note, it is not just the woman who loses her identity in marriage, nor is it just the woman who traditionally loses her family name to adopt his. No, he must give up his individualism, too, in order to be united with her. Equality is at the very heart of Christian teaching about marriage.

And finally, there is the third element of “becoming one flesh,” typically understood as consummating the marriage through sexual intercourse. In Christian teaching, sex is the crowning joy of an intimate relationship; but it comes last, after the leaving and the cleaving — the uniting of two into one.

This is, of course, an absurd notion to young people in the modern era. Those of us who adhere to those traditional ways are now a relatively small proportion of the population. 81 per cent of all couples who marry have lived together before marriage. The idea that sexual intercourse should be the final step of that union — something that occurs after leaving, after committing to one another in marriage — may seem at best quaint; at worst, it is a throwback to a dark past when young women who lost their virginity prior to marriage were deemed outcasts, forever shamed, whereas men who sowed their wild oats were admired for their sexual prowess and boasted of their conquests.

Yet there is also great wisdom in it, as in all the teaching of Jesus. Saving sex until marriage marks out the exclusivity of that sexual union. You have an intimate bond with one person that you have had with no one else and promise not to have with anyone else, at least until death brings that relationship to an end.

Marriage and the discipline of denial

That golden idea of marriage was supported by a clear idea of the nature and purpose of marriage, as defined in law. In the famous English case of Hyde v. Hyde and Woodmansee, decided in 1866, Sir James Wilde defined marriage as “a union for life of one man and one woman to the exclusion of all others, as understood in Christendom.” This was a case about whether polygamy could be recognised. A union for life of one man and one woman to the exclusion of all others. Sir James Wilde made it clear that this common law understanding of marriage had its origins in Christianity. Christianity rejected polygamy. It also rejected divorce by the pronouncement of the talaq or the gett or any other means by which men discarded women for whom they no longer had a use.

That teaching about marriage went against the most primal instincts of men. Lifelong fidelity does not come easily, especially to men. Yet it is critical for the wellbeing of women and children that men will commit themselves to the support of their wives and the nurture of their children long after the bloom of youth has faded, long after the first rush of young love has dissipated, through the hard times as well as the good times. This matters still, even though so many mothers are now in employment, at least part-time. Men provide less investment in their children when they are no longer in a relationship with the mother.

Marriage involves commitment through all the mundane circumstances of life. That commitment anchors the family, gives it the stability that allows all the members of the family to flourish. It is the discipline of denial that offers the security to bring children into the world — and for women, in particular, to make those sacrifices necessary to nurture the children in their earliest years.

Rejecting the Christian idea of marriage

In the modern era, this Christian understanding of marriage, this notion of “a union for life of one man and one woman to the exclusion of all others” as Sir James Wilde defined it, has been comprehensively and completely rejected. These changes are well-known, but it is at least worth reviewing what they mean for modern marriages and more broadly, modern family relationships. There has been a huge controversy in recent years about same-sex marriage; but it is important to see that the changes brought about in the nature of marriage long preceded that debate. We had pretty much abandoned the Christian view of marriage as underpinning our national laws, at least a decade earlier.

For life, to the exclusion of all others …

In 1975 in Australia, but a little earlier in other Western countries, we abandoned the idea that marriage was a covenant, a union of men and women for life to the exclusion of all others that would be protected in law. Divorce, until 1975, was a remedy for a wrong. The husband who broke the marriage covenant by adultery, or who deserted his wife, or who treated her cruelly, could be divorced by her and would need to pay spousal maintenance, or alimony, for her as a form of damages for breach of that covenant.

That, at least, was the theory. In reality, few men could afford to pay spousal maintenance, particularly if they were also paying maintenance for their children. When one goes from one household to two, inevitably many costs double while the available income stays the same. Divorce often meant penury for women and children even if the man was utterly at fault for the marriage breakdown. Nonetheless, the law at least supported the Christian idea of marriage with its remedy of divorce. It also supported it through the criminal law. Adultery was an offence, known, rather obscurely, as the euphemistically named offence of “criminal conversation.”

No-fault divorce ended that — and perhaps rightly so, because the law was an imperfect instrument for enforcing the idea of marriage as a lifelong union; but it left marriage-for-life as no more than an internal commitment, a promise that people make to one another which is wholly unenforceable. One person can leave a marriage without the agreement of the other. It takes two to make a marriage, but only one to break it.

So no-fault divorce, introduced in 1975, ended the notion of marriage being presumptively for life. It was replaced with a policy that marriage lasted only as long as both parties wanted it to.

A legal union

Far bigger changes concerning marriage were to occur after 1975. They began slowly, with a limited legal recognition of de facto relationships; but as the law has developed, cohabitation, living together with someone in an intimate partnership, has become exactly the same as marriage for legal purposes. A legal union, in other words, no longer matters.

This has been perhaps the most important and significant change to the legal regime supporting family relationships in Australia. As understood in Christendom, marriage involved a solemn commitment of a man and woman to live together until death parted them, usually made publicly before family and friends. By the time of Pope Innocent III in the thirteenth century, the Church taught that it should be in the presence of a priest as a witness. By 1563, the Council of Trent determined in its Decree Tametsi that for a marriage to be valid there needed to be three witnesses, one of whom had to be the parish priest of one of the parties; and there had to be an announcement about the prospective marriage beforehand, known as “publishing the banns of marriage.” Similar provisions were adopted across the emerging Protestant world, but inconsistently. The need for a public commitment was not established in English law until Lord Hardwicke’s Act of 1753.

New South Wales was the frontrunner in bringing about change in Australia. It enacted new laws in 1984 which provided some limited legal recognition for cohabitation. Over the following twenty years, other states introduced similar laws but they were increasingly indistinguishable from marriage. The trajectory of law reform at both state and federal levels over twenty years has been to insert the words “or de facto” whenever the word “marriage” or “spouse” appears in legislation. Initially this was to address the issues for heterosexual couples who do not marry; later the term “de facto” was extended to include same-sex couples.

The notion that marriage required a legal union was finally abandoned in Australia in 2008. In that year, the Family Law Act was amended to provide, in all states and territories but Western Australia, that couples who live together without marriage should be treated for all intents and purposes as if they were married once they had lived together for two years. This followed on from amendments to various state and territory laws over the preceding twenty years or more that had been to similar effect.

After 2008, there was simply no difference, anywhere in Australian law, between a heterosexual couple being married, and living together in a de facto relationship, at least once a period of time, typically two years, had elapsed. These changes had the effect of abolishing any need for a legal union, as understood in Christendom.

Consider now a young couple in Australia who are in love and have begun living together. Let us call them Alex and Chris — for they could be a heterosexual couple or a same-sex couple. Let’s assume that they live in Melbourne. Discussion turns on one cold winter’s night to the future of their relationship. Alex would quite like to get married but is not sure how. Chris is not so certain — why does a piece of paper matter?

So they explore their various options. If they decide to marry, they may choose a religious wedding, as long as they can find a minister of religion prepared to marry them. There are some nice old churches with a medieval stone look, if that is the kind of setting that they want. Alternatively, if they just want something secular, they could purchase the services of a private marriage celebrant who may be able to conduct the wedding, perhaps in some special location. Or they could marry in a registry office. Alex finds the website for the Victorian Marriage Registry which promises “elegant civil marriage ceremonies on weekdays and weekends for couples seeking an intimate and simple wedding” in an old heritage-listed building in the city.

Another option, if they don’t want to marry, is to register the relationship. In Victoria, and in a number of other states, couples can enter into a “registered relationship.” A registered relationship has the same effects as marriage for the purposes of the law of that jurisdiction. So how exactly is a registered relationship different from a marriage at a registry office? You go to the same office to register; you just skip the “elegant ceremony.” All very prosaic — just sign the form, much like registering a car, for example. So much cheaper; but also no promises of everlasting love, for better for worse, for richer or for poorer, in sickness or in health. Just a relationship for the time being. Registration, but no covenant.

Or Alex and Chris can forget about any form of marriage or registration and just live together. The legal effect is exactly the same, certainly after two years.

In Australia, then, whether Alex and Chris choose to marry, have a registered relationship, or live together as a couple without formalising or registering their relationship, the effects are almost exactly the same. All roads lead to Rome. The message of our law is that marriage doesn’t matter.

These changes to the law both followed social changes and contributed to them. Initially, cohabitation was typically a short-term thing. People lived together for a while before marrying. That remains the case for some; but increasingly, a de facto relationship has become an alternative to marriage, even for those who want children together. Now 35 per cent of children are born outside marriage. The percentage is greater in other countries. In several countries in northern Europe, over 50 per cent of all children are born outside of marriage.

Marriage has declined substantially as the basis of family formation. In 2017, Australia had the lowest number of marriages per 1000 population ever recorded. It was less than half the number who married in 1970, and a lot of those who marry these days are forming a second or later marriage.

… of a man and a woman

In 2017, the Marriage Amendment (Definition and Religious Freedoms) Act was passed following a nationwide plebiscite, described for certain legal reasons as a postal survey. That allowed same-sex couples to marry. There was, of course, a massive cultural conflict over same-sex marriage leading up to the vote in 2017. There were those who saw it as a body-blow to the Christian understanding of marriage — an understanding shared by the other great Abrahamic religions, as well as by smaller religions that have some historic points of connection with the Christian faith.

There is no need to revisit the issue of same-sex marriage here. That debate is done and dusted; I do, however, want to make one observation about it. For the most part, the battle over marriage equality was about equality rather than marriage. Going back a couple of decades, there were a lot of gay and lesbian people who completely rejected the idea of marriage. In the late-1990s, I remember we hosted a visiting professor from Scotland at the University of Sydney. He gave a staff seminar entitled, “Marriage is for heterosexuals: May the rest of us be saved from it.”

That position changed, and there was a strong and successful campaign for marriage equality. However, the strong push to allow same-sex marriage did not, for the most part, indicate any reversal of the trends away from marriage over the last two decades. Promises of a great boon for the wedding industry, rivers of gold flowing from a large number of rainbow weddings, went unfulfilled. In the first year after legalisation, 2018, there were 6,538 same-sex marriages in Australia. What is that as a proportion of all couples eligible to marry? In the 2016 census, there were just under 46,800 same-sex couples living together. Of these couples, 3,142 had been married overseas, which leaves around 43,500 who were eligible to marry in 2018. About 15 per cent of all those same-sex couples who might have married in 2018 actually did so. 85 per cent did not.

Now it may be that some have simply delayed marriage. We don’t have data yet for 2019 for the country as a whole. Queensland data indicates that there were 1,031 same-sex weddings in Queensland in 2019. That compares with 1,292 couples in 2018. Only 174 same-sex couples have wed in the first quarter of 2020, before the pandemic shutdown, indicating that the stream of same-sex marriages is slowing very considerably. That is less than 4.5 per cent of all weddings in that quarter.

My point is that, while for some couples getting married was indeed very important, the enactment of same-sex marriage did not herald a new golden age for marriage, a renewed interest in and commitment to the idea of legal union. There has been no rush to the registry office.

Is there a downside?

Of course, many still believe that the sexual revolution, no-fault divorce, and all the other changes are a great liberation. Marriage has been given a bad press in the progressive movement, being associated with patriarchy and a traditional division of roles between men and women. For many, the demise of heterosexual marriage, at least, is a wholly good thing. However, there are many downsides to this shift away from marriage as the foundation for family life in Australia. To put this into context, there is widespread agreement among experts that children do best in safe, stable, and nurturing families.

Safety is, of course, a foundational need, and this should be understood in relatively broad terms. Children need to be protected from both physical and sexual abuse, and from exposure to domestic violence; for even witnessing or being aware of violence perpetrated on the mother can have traumatising effects and leave children feeling profoundly unsafe. Children who grow up in unsafe environments, or who are victims of child sexual abuse, are disproportionately represented in statistics for adolescent and adult offending, indicating a clear and important connection between safety, emotional wellbeing, and the inculcation of values concerning responsible citizenship.

Stability is also very important for children. The Centers for Disease Control and Prevention defines the stability children need as:

the degree of predictability and consistency in a child’s environment. It encompasses consistency in who children relate to as well as the nature of their interactions with caregivers, others in their environment, and the environment itself.

The breakdown of the parents’ relationship is a primary source of instability in children’s lives. If parents break up, family routines are disrupted, and changes typically occur across a number of different domains — where children live and go to school, the relationship with the parent who no longer lives with the children, and levels of financial stress. Parental separation is an important factor to address in terms of the life chances of children.

A nurturing family is the other important ingredient if children are to have an upbringing that is emotionally healthy. Research indicates that children do best with a parental style which is authoritative without being either authoritarian or permissive. It combines boundary setting with emotional closeness.

The tragedy of the erosion of marriage is that it has meant that far fewer children than a generation ago grow up in safe, stable, and nurturing families.

Stability

Take stability. The decline in the stability of families may be seen in an analysis of the likelihood of experiencing birth into a lone-mother household or experiencing parental separation before the age of 15 in different birth cohorts between the 1940s and the 1980s. In the cohort born between 1946 and 1955, nearly 9 per cent had been either born to a single mother or experienced parental separation by the age of 15. For the cohort born between 1981 and 1985, the figure was 25 per cent — nearly three times as high. There was a substantial increase both in the proportion of children born to single mothers and those who experienced parental separation. Children born between 1981 and 1985 also spent three times as many years of their childhood living in a step-family as those born between 1946 and 1955.

Data published in 2015 indicates how much family stability has deteriorated even since the 1980s. By the time that the youngest child in a family is 15-17 years old, 40 per cent have parents living apart. Why is this? The problem is not the rate of divorce. That has remained stable or declined over the last couple of decades. There were 2.7 divorces per 1,000 people in 1998 compared with 2.0 divorces per 1,000 people in 2018. A reason for that is a decline in marriage rates. A decline in marriages per 1000 population is likely to mean a decline in divorces a decade or so later.

Part of the explanation for the increase in children experiencing their parents living apart is a growth in the proportion of children born to lone mothers. In 2005, the latest data we have, 13 per cent were born to lone mothers. This compares with 3.8 per cent of children born between 1976 and 1980, demonstrating the extent and rapidity of social change, notwithstanding the widespread availability of contraception and abortion.

Couples with children who live in de facto relationships have much higher rates of breakdown. The odds of a de facto couple with children breaking up is more than seven times as high as a married couple who had not lived together before marriage, and more than four times as high as those who had lived together but went on to marry. Marriage matters. It has a profoundly stabilising influence on relationships.

This is consistent with the overseas evidence. Data from the Fragile Families study in the United States found that parental separation by the time the child was 3-years-old was five times greater for children born to cohabiting than married parents. Differences in financial wellbeing and family characteristics between cohabiting and married parents explained some of the difference, but after controlling for race, ethnicity, education, economic factors, family characteristics, and an extensive set of other covariates, parents who were cohabiting at their child’s birth still had over two-and-a-half times the risk of separating compared with parents who were married at their child’s birth.

Findings from the Millennium Cohort Study in Britain, initially comprising a cohort of 18,000 mothers who gave birth during 2000 or 2001, are similar. Again, after controlling for confounding factors, cohabiting couples are consistently 2 to 2.5 times more likely to split up compared to their married counterparts, across all income groups, by their child’s fifth birthday.

More recently, Sharon Bzostek and Lawrence Berger, analysing data from the Fragile Families study, have found that “children born to unmarried urban parents overwhelmingly experience family structure transitions by age 9, with approximately one-half experiencing two or more transitions and approximately one-quarter experiencing three or more transitions by that time.” Children of unmarried parents, in other words, are born into relationships with a high likelihood of instability.

In summary, the explanation for the massive increase in the proportions of Australian children who do not reach the age of 15 in an intact family with both of their biological parents is two-fold. First, more and more children are being born to single mothers who are neither married nor living in a cohabiting de facto relationship. Second, as the proportion of the population who live together outside marriage has increased relative to the married population, and as more and more de facto couples have children outside marriage, so the chances of the parents still being together by the time the child reaches 15 have substantially diminished.

Mental health

There is now a lot of evidence that the instability of family life is having an adverse effect on the mental health of children and young people. While adverse trends are not observable in every study, there is some compelling evidence now that adolescent mental health problems have been increasing significantly over time. Yes, teenagers have always suffered from depression, other forms of psychological distress, and illnesses such as anorexia — but just not in the numbers we are seeing now.

Why? Of course, there are many reasons. This is a complex subject and I don’t want to be simplistic; but the evidence suggests that family breakdown is a significant contributing factor.

One important study was published in 2010. In this US study, researchers conducted the most comprehensive analysis to date of data collected through the widely used Minnesota Multiphasic Personality Inventory (MMPI) test. The researchers examined data collected from college students between 1938 and 2007. They found that each generation had experienced poorer mental health than the previous one. At least five times as many college students in 2007 as in 1938 had measures indicating psychopathology on the various elements included in that test. These included measures of hypomania, schizophrenia, psychopathic deviation, paranoia, and depression. On many of these measures, by 2007, the increases were dramatic. This substantial increase in mental disorders was clear even after controlling for a greater willingness over time to acknowledge the presence of mental health issues. The researchers noted that their findings might actually underestimate the increase in psychopathology, given the numbers of Americans taking antidepressants.

The researchers found that the increase occurred steadily and irrespective of economic crests and troughs. The researchers found that the divorce rate was positively and significantly correlated with scores on all of the clinical scales.

Evidence of the association between declining mental health and family stability can also be found in Australian data. Consider the results of the Second Australian Child and Adolescent Survey of Mental Health and Wellbeing, published in 2015. It illustrates the extent of the problem. The researchers conducted surveys with parents in 6,310 households. They also got data from 2,967 young people aged 11-17.

20 per cent of adolescents had high or very high levels of psychological distress. The figures were almost twice as high for females (25.9 per cent and 14.8 per cent for males). More than one in 10 of the 12 to 17-year-olds had self-harmed at some time in their young lives. Self-harm was roughly twice as high in females compared with males. Females aged 16-17 years had the highest rates of self-harm, with nearly 17 per cent having harmed themselves in the previous twelve months. Those figures were reflected in the proportion who had considered suicide.

The researchers estimate that 14 per cent of children and young people aged 4 to 17 had had a mental disorder in the previous twelve months, with rates especially high among male children. 2.1 per cent of children and young people were assessed as having a severe disorder, but that varied with age. Among 12 to 17-year-olds, the figure was 3.3 per cent. The researchers identified an association with family structure.

Correlation is not causation, and so we have to be careful how we interpret this data; but there is a vast mountain of evidence to support the fact that family stability is incredibly important to children’s wellbeing. Leading American expert, Professor Paul Amato, for example, has written:

Research clearly demonstrates that children growing up with two continuously married parents are less likely than other children to experience a wide range of cognitive, emotional, and social problems, not only during childhood, but also in adulthood. Although it is not possible to demonstrate that family structure is the cause of these differences, studies that have used a variety of sophisticated statistical methods, including controls for genetic factors, suggest that this is the case.

Conflict, mental distress, and family structure

Undoubtedly, a significant contributor to the disproportionate distress of children and young people whose parents live apart is the conflict that they have experienced between their parents prior to separation. There was a time when the prevailing view among experts was that it was better for children if their parents separated than to continue to live in a high conflict family. Such a sanguine view is no longer so widely held. One reason is that parental conflict does not necessarily end upon separation. Indeed, conflict and violence may be exacerbated by separation. Some violence by one parent against another only begins when the parents have separated.

Separation creates different sources of conflict between parents from the kind of conflict that occurs when parents live together. There may be arguments about property settlement or parenting arrangements in the aftermath of separation, leading to litigation. There may be ongoing arguments about child support; different approaches to discipline, diet, and bedtimes in each home may be a source of friction, without parents feeling they need to reach agreement on these matters as they would in an intact family. There can be unresolved issues about the breakup that cause continuing tension and hostility. New partners may arouse feelings of resentment or jealousy; and as parents lives move in different directions, there may be serious conflict concerning a primary caregiver’s desire to relocate either within Australia or overseas. These ongoing conflicts take their toll on children.

Conflict between the parents is likely to be particularly harmful if children feel that they are caught in the middle, asked to act as messengers or spies, or experience one parent denigrating the other. It can also be very harmful if one parent attempts to recruit the child as an ally in his or her battle with the other.

Conflict in single parent families and stepfamilies

Young people report significantly higher levels of conflict in stepfamilies and lone-parent families than in intact families. Stepfamilies, in particular, create new sources of tension. Living in a stepfamily is not easy. In addition to all the challenges of marital or quasi-marital relationships, stepfamilies involve numerous pressures and tensions from raising children who have different parents. These children are likely to have a parent living elsewhere, with whom the children have a continuing relationship.

Numerous issues can arise in terms of forming a single family unit, including discipline, issues about financial provision for the different children, and difficulties in relationships between the children. There can also be issues of resentment of step-children and competition for time and attention. Children from stepfamilies are less likely to complete year 12 at school than children in intact families or with a lone parent.

Children’s safety

The loss of family stability, in turn, has effects in relation to children’s safety. Children, and especially girls, are at much greater risk of sexual abuse from the presence of men living in the household who are not biologically related to them than from their own fathers. For example, Diana Russell’s landmark study of 930 women in San Francisco found that one in six girls who had grown up with a stepfather were sexually abused by him. In contrast, one in forty girls were abused by their natural father. Similar results have emerged from other studies.

There is also a much greater risk of child homicide. One research team, for example, reported:

Extrapolating from available data, the results indicated a considerably greater risk represented by stepfathers than by genetic fathers. At least five times as many children live with genetic fathers, while the raw frequencies of filicide were roughly equal in the two groups. A most liberal estimate for the prevalence of stepmothering (5%) also suggested that stepmothers represent a substantially greater risk of filicide.

There is a much higher likelihood of child protection services needing to be involved with a family if the children are not living with two married biological parents.

Ramifications

The ramifications of this are considerable, and not just for the mental health of children and young people. The instability of family relationships affects us all. The inability of so many to form and maintain stable relationships is likely to lead to a much greater level of loneliness as people age. This is a problem particularly after they have left the workforce, since work provides some degree of community. Relationship breakdown affects people’s finances. It can have devastating impacts upon people’s wealth and capacity to care for themselves in retirement. Women with the care of children who do not repartner after a relationship breakdown are especially vulnerable.

It even affects people’s sex lives. The sexual revolution was meant to lead to a much freer attitude to sex, more availability of sex with more partners. The old joke was that the only people who are not having sex are married people. The real picture, though, is much more complex. A satisfying sexual relationship involves a continuing partner. Sex and the City presents one view of the world, but it is probably not what most people experience. The evidence from many countries is that people are having less sex than they used to.

Another ramification is in terms of fertility rates. People are waiting much later than 30 years ago to marry or form de facto relationships in which to bear children. If those relationships prove unstable, then women of child-bearing age may find themselves without a partner or struggling as a single parent at a time when they would like to have more children than they have.

The repercussions of family instability flow throughout the society.

Family stability and faith

So what about the churches? I wish I could say that these trends in Western society are merely secular trends, that the churches are unaffected by them; but we all know that isn’t true. In our churches, too, the idea of marriage as the union of one man and one woman for life to the exclusion of all others, is not universally held. Indeed, adherence to the traditional Christian teaching on sex before marriage has probably declined sharply, even among otherwise quite committed Christian young people.

What about family stability? There is some data from the United States to suggest that divorce rates among evangelical Christians are not lower than the rest of the population. However, more finely grained research shows that if both members of the couple are committed to the faith and pray together, marital satisfaction is very much higher and divorce rates much lower.

Still, we cannot be at all complacent. I will return to this in a subsequent lecture; but to foreshadow what I will be saying there, I believe it is essential that, as church leaders, we work to re-evangelise the flock, to persuade Christians afresh of the wisdom of Christian teaching on sex, marriage, and family life more generally. We need to support safe, stable, and nurturing families in the society as a whole; but on this issue, the effort must first be to strengthen family life within the community of faith.

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We are living in a society which has almost completely abandoned Christian teaching on marriage. None of the elements of marriage as understood in Christendom, and as defined at common law, now survive. The notions of permanence and exclusivity were abandoned 45 years ago. Marriage still involves a legal union, to be sure, but the same legal effects follow without a legal union, at least once a couple have lived together for two years. And, of course, it is no longer necessary that marriage be the union of a man and a woman.

Australian society, like other Western societies, is charting its own course with a rather confused idea about what marriage is and why it is that de facto relationships should be treated as equivalent to marriages. While these changes, which began with the sexual revolution in the 1960s, are typically presented as a liberation, we are now experiencing the downsides. The consequences of family instability are enormous — particularly for children.

The challenge for public policy is to work out how better to support children with safe, stable, and nurturing families. Notwithstanding all the other problems that are important and which attract attention — such as climate change and racial injustice — the problem of family instability is one of the greatest challenges of our time.

Professor Patrick Parkinson is the Academic Dean and Head of School for the T.C. Beirne School of Law at the University of Queensland. He is the author of Family Law and the Indissolubility of Parenthood.

Neogen Corporation (NEOG) CEO John Adent on Q1 2021 Results - Earnings Call Transcript
Neogen Corporation (NEOG) CEO John Adent on Q1 2021 Results – Earnings Call Transcript

Neogen Corporation (NASDAQ:NEOG) Q1 2021 Earnings Conference Call September 22, 2020 11:00 AM ET

Company Participants

John Adent – Chief Executive Officer and President

Steve Quinlan – Chief Financial Officer

Conference Call Participants

David Westenberg – Guggenheim Securities

John Kreger – William Blair

Mark Connelly – Stephens, Inc

Jon Braatz – Kansas City Capital

Operator

Good day, and welcome to the NEOGEN First Quarter Fiscal Year 2021 Earnings Results Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to John Adent, President and CEO. Please go ahead.

John Adent

Thank you, Matt. Good morning and welcome to our regular quarterly conference call for investors and analysts. Today, we will be reporting on the first quarter of our 2021 fiscal year which ended on August 31.

As usual, some of the statements made here today could be termed as forward-looking statements. These statements of course are subject to certain risks and uncertainties. The actual results may differ from those that we discuss today. The risks associated with our business are covered in part in the company’s Form 10-K as filed with the Securities and Exchange Commission.

In addition to those of you who are joining us by live telephone conference, I also welcome those of you joining us via the Internet. Following our prepared comments this morning, we will entertain questions from participants who’ve joined this live conference. I’m joined this morning in an appropriate social distance by Steve Quinlan, our Chief Financial Officer who will provide financial detail on our results for our quarter.

We’re pleased to report increased revenues and net income compared to our prior year’s first quarter in a very difficult operating environment. While we are developing and marketing products and services to help protect and enhance the global food supply, we continue to take extraordinary measures to protect our business and employees. We remain vigilant with our COVID-19 safety measures, but we continue to see cases around the world affect our business. Through it all our employees have done an outstanding job of adapting to these constant challenges to deliver these excellent results for the quarter. They worked extremely hard, and I’m very proud of them.

But this is far from over. And it’s not time to let up. We will continue to implement safety measures we’ve had in place since the beginning of the pandemic and refine and develop new best practices. We are constantly adding to our list of alternate suppliers of essential raw materials as well as seeking even more efficiencies with our production facilities. Everyone is feeling the effects of COVID-19. We’ve had numerous customers go out of business, while others have dramatically cut staff and output. Adaptability is vital now as customer demands and raw material supplies are impacted daily. The food and livestock industries continue to be adversely affected by the supply chain disruption that started months ago.

Let me give an example. The National Restaurant Association recently did a survey of its members after six months of the pandemic and found one in six restaurants in the US were either closed for an extended period or closed permanently. That means more than 100,000 restaurants in the US alone that will close at least temporarily with an associated estimate that the domestic restaurant industry will lose $240 billion in sales by the end of 2020. Just think about those 100,000 closed restaurants and the $240 billion in lost sales and their effects on our pre pandemic food chain. Then add the countless food service, catering and similar businesses that have been devastated by the pandemic and the restaurant shift to customers eating a far greater percentage of their meals at home. Economic Recovery to pre pandemic levels is going to take many months, if not years.

The immediate future is further clouded as the northern hemisphere begins to enter its flu season. As we face these challenges, we will continue to develop contingency plans across our businesses to prepare for what may come and while the future is unclear due to COVID-19 what is clear is the future of NEOGEN. We will find opportunities for growth and development in all of our markets. Later on, we’ll address some of those opportunities that have arisen for NEOGEN due to the pandemic, as well as some of the very encouraging developments from a global R&D groups. But before I do, I’m going to pass it over to Steve to run down the numbers for you.

Steve Quinlan

Well, thanks, John, and welcome to everyone listening this morning. Before I talked about the numbers, I’d like to echo John’s comments about how proud we are of our global team for how seriously they’re taking the responsibilities to keep their fellow employees safe during this pandemic, and for the results they’ve been able to produce in this very difficult operating environment. Earlier today, we issued a press release announcing the results for our first quarter, which ended on August 31. Revenues for the quarter were $109.3 million, compared to $101.4 million in the same quarter a year ago. Net income for the quarter was $15.9 million, or $0.30 a share, compared to $14.7 million or $0.28 a share a year ago.

In the next few minutes, I’ll give you some color around the numbers. And I’ll start by talking about the currency impacts to the business in the first quarter, which were mixed. The pound and the euro were each up 3% against the dollar compared to the first quarter of fiscal 2020, which provided a bit of tailwind for our European results. The Brazilian real and the Mexican peso, on the other hand, were 27% and 14% lower on average than in last year’s first quarter. Revenues would have been $2.1 million higher for the first quarter in a neutral currency environment. Almost all of that impact was felt in the food safety segment as the majority of our international businesses report in through this segment.

Revenues for the Food Safety segment were $54.2 million in the first quarter of fiscal 2021, an increase of 6% compared to $51 million even in last year’s first quarter. The revenue gains in the segment were driven by a $2.4 million increase in our England based manufacturer of cleaners and disinfectants on sales of hand sanitizer products to the UK National Health Service and a $1.2 million increase in sales in China with gains across the product portfolio and particularly in cleaners and disinfectants to combat the African swine fever and COVID-19. At our Brazilian operations, 2021 first quarter sales increased 38% in local currency, and included a large non recurring insecticide sale to a government health organization in Nicaragua.

Additionally, sales were strong across our entire portfolio of products, including a 16% increase in dairy drug residue test kits, continued market penetration in aflatoxin test kits and growth in rodenticides and genomic services. However, negative currency translation resulting from the real devaluation lowered the growth reported from Brazil to 1% in US dollars. At NEOGEN Latino America 13% growth in revenues in local currency in the first quarter, resulted primarily from increased sales of cleaners, disinfectants and sanitizers mostly in Mexico. Adjusting for the devaluation of the peso relative to the dollar resulted in a revenue decline of 2% in US dollars compared to last year’s first quarter. Combined revenues at our UK operations increased 21% primarily resulting from a large order of hand sanitizers to the UK government’s health organization, and strong cleaner and disinfectant sales to Asia Pacific, Africa and the Middle East. Histamine test kit sales also contributed to the growth due to increased business from tuna producers, as did our Raptor test system for mycotoxin.

Our domestic Food Safety business grew 2% for the quarter. As we discussed on our year end call there is still significant amount of disruption in the food processing and food production markets, with certain of our customers serving the grocery markets doing very well, while other customers serving bars, restaurants and other commercial food service are struggling. But there were areas of growth within the business. We introduced our next generation Soleris system in late July to US markets and had strong positive reactions and great initial demand for the system, which is used to detect spoilage organisms such as yeast and mold in processed foods.

On a worldwide basis, our test to quickly detect environmental Listeria in food processing plant Listeria right now continues to gain acceptance in the market with revenues up 9% in the quarter. Revenues for our industry leading product line to detect allergen contamination in foods were down 3% in the quarter, and our AccuPoint line which is used to detect general sanitation and cleanliness in food processing environments declined 7%. Each the result of lower end market demand reflected as a continued disruption in our customers and in our markets.

Natural toxin product sales increased 1% compared to last year’s first quarter, as continued market share gains on aflatoxin kit sales in Brazil were largely erased by the real to dollar currency conversion. Higher DON sales in the prior year in Europe from an outbreak did not repeat. And similarly domestic sales were flat due to clean crops so far this year. Revenues for our test to detect the presence of antibiotics in milk declined by 33% in the quarter as customers in Europe work through distributor inventory. Recall that in January, we announced that we terminated the exclusive rights to distribute these products with our European distributor, and we’re now ramping up our direct sales force for that product line.

The animal safety segment recorded revenues of $55.1 million for the quarter, up 9% over the $50.4 million achieved in last year’s first quarter. The growth was led by a $3 million increase in sales of rodenticides resulting from rodent pressures across the US particularly in the Pacific Northwest. Revenues at our Australian operations rose $1.2 million on the strength of increases in sheep and cattle genomic testing, and the incremental revenues resulting from our acquisition of Cell BioSciences in March of this year.

Revenues at our domestic genomics testing and bioinformatics business located in Lincoln, Nebraska increased $1 million and continued market share gains in the companion animal parentage and wellness testing space and sales from our recent launch of a chip for shrimp testing, which offset lower sales to a large poultry customer as it moves to one of our lower density, lower cost chips. Domestic commercial beef and dairy sales were also sluggish in the quarter the result of the COVID outbreaks in our customer supply chains and continued poor economic conditions in dairy markets. Worldwide, our genomics revenues increased 11%, with some additional growth in China and increased testing in the swine market.

Animal Care Products sold out of our Lexington, Kentucky based manufacturing and distributing center, such as vitamin injectables, equine and small animal supplements, wound care and antibiotic products were up 8%. These increases were somewhat offset by a 25% decrease in sales of dairy supplies, which we’ve distributed for a number of years for a large manufacturer of dairy equipment. Our distribution agreement with that manufacturer ended in June of this year.

Sales of veterinary instruments and disposables such as needles and syringes declined 8% for the quarter, and lower sales to our larger Animal Health distributors. Life Science product revenues declined by $400,000 the result of lower forensic kits sales to commercial labs, as they process fewer samples due to Covid related slow downs.

Our Domestic Cleaner and Disinfecting business benefited from a 31% increase in hand sanitizers and wipes resulting from COVID-19 demand somewhat offset by lower sales of water treatment products. And our insecticides revenues in the US rose 6% boosted by our purchase in July of the StandGuard product line. Gross margins were 46% for the quarter compared to 47.5% in last year’s first quarter. The lower margins are primarily the result of the shift in product mix and the food safety segment toward products which have lower gross margins. The impact of the stronger dollar on our product costs in Mexico and Brazil and increased duties, freight in and other overhead costs in our Lansing operations, partially offset by the increased sales rodenticides, a higher margin product and increased efficiencies that are Australian operations due to increased throughput in the animal safety segment.

Overall, our operating expenses drop 2% compared to last year’s first quarter, primarily the result of a 6% reduction in our sales and marketing spend. Lower global travel, trade show and other on site customer facing activities caused by travel restrictions from the COVID pandemic drove the decrease in expense here.

General administrative expenses rose 3% for the quarter, due primarily to increased compensation and legal and professional fees. Our R&D expenses increased 5% over the prior year quarter on outside services related to the launch of the next generation Soleris product, which as I said was launched in July and has been receiving very positive reviews.

Operating income for the first quarter was $18.9 million, compared to $16.3 million in last year’s first quarter, with the increase the result of the higher sales and gross margins and reduced operating expenses, expressed as a percent of revenues operating income was 17.3% compared to 16% even in last year’s first quarter. We recorded $722,000 in interest income for the quarter and this compares to $1.5 million last year. The lower amount recorded despite increased cash balance reflects the tremendous decline in yield in fixed income investments. As an example, the rate on one year treasury bills which was 1.8% in last year’s first quarter declined to 12 basis points this year, as the financial markets reacted to the pandemic.

Our effective tax rate for the first quarter was 19.9% compared to 17%, even in last year’s first quarter. Last year’s effective rate was low due in large part to $769,000 in tax benefits recognized from the exercise of stock options. This year that comparable number was $421,000. I’ve mentioned on previous calls that the volume of option exercises and the gain on those exercises can result in significant fluctuations in the effective tax rate for the comparative period. Another factor impacting the higher tax rate for this year’s first quarter was a lower benefit recognized from foreign derived income due to the timing of full year estimated income from our international operations.

On the balance sheet, our net receivable balances declined by $7 million compared to year end, and our collection period dropped from 68 days at year end to 61 days for the first quarter. And we feel good about those strong collections, particularly in this environment. Inventory increased by $2.5 million or 3% primarily due to increases in the UK for long lead time items. As discussed on a year end call, given the uncertainty around the supply chain caused by COVID, and potential Brexit disruptions, we believe it’s prudent to carry a little bit more inventory than we normally might. We continue to generate cash nicely, and produce $25 million in cash from operations during the quarter.

Our strong cash position gives us the flexibility to pursue just about any of the many growth opportunities that we have in front of us.

I’ll stop here and again emphasize that we’re proud of the team and their overall performance of what continues to be a very challenging operating environment. We capitalized on a number of market opportunities during the quarter. And we continue to be excited about both our current business and the new products that we’re launching this year. And as always, we appreciate the support of our shareholders, and all those listening on the call today.

At this point, I’ll turn it back to John for the moment.

John Adent

Thanks, Steve. As I’ve previously said, our mission matters today more than ever, as the world fights through this crisis to eventually recovery. There are few things more important than a continuing safe and plentiful food supply. NEOGEN was built to respond in times of crisis and may have responded. We’ve done our best again to assist the broader civic efforts to combat COVID-19 making by our sanitizers and disinfectants available outside of our traditional agriculture and veterinary markets. Another example of an opportunity for NEOGEN that was created by the pandemic is sales of our test to detect histamine that Steve talked about. It’s a spoilage indicator and some fish and especially used in tuna. Sales of canned tuna have spiked as consumers have sought less expensive sources of protein to consume at home, and sales of our test kits for histamine increased by 20% compared to the prior year quarter. We’ve also benefited from the now well documented increase of spending on pets, especially dogs and cats during the COVID era.

Our genomic operations recently marked the 2 million tests performed on companion animal samples, mostly for dog breed identification, but now expanding into canine wellness tests. As we respond to the pandemic, we’ve also recently launched some significant new products from our R&D pipeline.

As mentioned before, in July, we launched our new Soleris next generation, which is an automatic test system that detects micro organisms such as yeast and mold in a fraction of the time of traditional test methods. As Steve mentioned, we’ve had a tremendously positive market reaction to this product launch, especially to the nutraceutical and cosmetic industries. Just last week, we launched an improved test for gluten, which has been one of our major food allergen tests. The improved test rapidly detects gluten in food products, raw ingredients and environmental samples. What that means is companies can now use the same method to test for allergens and food and environmental samples, as opposed to using different methods for different sample types. We believe that this is a major advancement from one of our core product lines. And we’re in the final stages of development for similar improvements to more of our food allergen tests.

We also expect that other major product launches in the coming months are going to be very successful. We’re encouraged by many of our other developments in the quarter; for example, our revenues in China more than doubled for the quarter. Our management team there is experienced and is working under an improved operating structure and growing our revenues across all of our product lines.

Our Animal Safety and Genomics revenues have more than doubled in China. And we’ve had really solid broad base gains in the food safety side. We’re also encouraged by the initial performance of the companies we acquired within the past year that are now under NEOGEN management.

In Australia, we added our food safety line to our animal safety genomics offerings, and are providing very promising results.

In Italy, we’re starting to see the benefits of NEOGEN’s ownership of our previous distributor there, as we are in Argentina, Uruguay, and Chile. Through it all, we’ve made gains where we can as we work to protect our employees and business. And once again, I’m extremely proud of how our team has acted and reacted to this unprecedented business and social environment. I’m sure that a lot of you have questions. So at this point, I’m going to stop and open it up to those of you who have joined the call.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question comes from David Westenberg with Guggenheim Securities.

DavidWestenberg

Hi and thanks for taking my question. Good job executing on a — in a really challenging environment. So I’m going to start with the rodenticides sales. I know we’re getting news articles about rodents taking over New York City. I’m just trying to kind of understand whether or not this pickup in sales is something that you think can increase. And if you can maybe quantify what the rodenticides were versus — because we also kind of want to figure out that disinfectants and sanitizers and rodenticides did very well in the quarter. So we are trying to understand contribution from rodenticides, if that could be recurring? And then if there’s a way to quantify that in order to understand also in terms of what the sanitation products that might be a COVID lift are? I get that’s a long question. Sorry about that.

JohnAdent

That’s all right. Yes, well, the big lift for us on the rodenticides was really as Steve talked about in the Pacific Northwest and the Ag market. So we had a really — there was a really strong outbreak kind of out there. We are seeing in our worldwide markets a lift in our PCO, which is to the more metropolitan areas. But that’s a market that is relatively new to NEOGEN. But it’s one that we’re pretty excited about and see some long term growth opportunities in. In the cleaners and disinfectants, as Steve mentioned, you saw we had increases in hand sanitizers in the UK where we were working with the UK Government. We continue to look for opportunities there. I think when we stepped up at the beginning of the outbreak and provided sanitizers outside the market there’s a lot of new customers we picked up, everybody else have kind of gotten their supply chain in order.

So there’s a lot of sanitizer pressure, there’s not a run on it like there was but we’re seeing pretty good retention rate for the customers that we picked up early in the year.

DavidWestenberg

Got it. Okay. And then another — asking to kind of quantify. You got contribution in StandGuard, but it was only about a month. And I know you give an organic revenue number, and it’s — we could subtract what the top line is and kind of figure out what acquisitions did. But if there’s a couple of pieces; I can probably just try to get at for — in terms of trying to model out. Would you be able to call out StandGuard and if one month — just times that by 12 to get kind of the run rate for StandGuard? And then kind of the distributor acquisition contributions, if you can’t give a specific, if you can maybe give us a qualitative kind of way to think about it, so our models next year look correct?

JohnAdent

Okay, Steve will handle that one.

SteveQuinlan

Thanks, John.

JohnAdent

You’re welcome, Steve.

SteveQuinlan

So David, on the StandGuard product, we had about $160,000 of revenue for that product. Remember, we just bought it right near the end of July; we just kind of launched it into our market. So it’s just starting off. But we’re really encouraged about the prospects for the product line. And the distributors that we purchased, I think it’s important to note that we were doing business with a number of those distributors already – and those numbers were already somewhat in our food safety numbers. So you’re really seeing incremental revenues there. So it’s really tough to call out and say, well, Chile was x, because it was already — we’re doing the incremental margin there. But as John said, we’re excited about the opportunities in those markets. We’re staffing them up, we’re kind of putting that NEOGEN infrastructure in, and we’re just excited about the future of those businesses. I think I’d probably stop there on that.

DavidWestenberg

Got it. And just further on that question, is it responsible to times that $160,000 by 12 to get the year run rate? Or is there just too much kind of noise and you just got the asset and —

JohnAdent

Yes, it’s a little early. There’s seasonality in that product. And that’s a little early. I wouldn’t do that as a straight run rate. W will have a little bit more clarity after next quarter, probably. But we [are] [ph] happy with it so.

DavidWestenberg

Got it. All right. I’m going to ask just one more question before I hop into queue. I don’t want to hog all the questions here. Just lastly on competition are you see anything differently from maybe some of the players in the life science tools, traditional ones, like Waters or PerkinElmer? I know PerkinElmer I think they launched a micro toxin test. Are you seeing that in your — in kind of impact on the market, and then as a follow up to that, when do you see competitor products is that kind of one of the things where you step on the gas in terms of R&D or is that one of the things where you maybe step on the gas in terms of acquisitions?

JohnAdent

So the answer is yes. So we have seen competitors and they continue to launch, right, you saw Hygiena launch a new ATP reader, you saw PerkinElmer buy the business in China before the COVID. And you see others that are buying up smaller, maybe a small portfolio of allergen testing or others. So there’s continued competition. And that’s why our strategy is like we’ve talked about; we continue to invest in R&D. So I think that goes right hand-in-hand with what we just launched with the gluten test, where before you were having to do a test to test for raw materials for gluten and then a separate test to test environmental samples, two separate test on two separate ways. And now we have one test, that’s going to be much simpler for the customer when they want to buy one gluten test, and they can do it across the markets. So yes, we’re continuing to invest in R&D to stay ahead. We do think there are opportunities for acquisitions. We’ve got a very nice pipeline that we’re looking at. We’ve got things that were in different stages of the pipeline, and we’re going to keep executing on that strategy.

Operator

Our next question comes from John Kreger from William Blair.

JohnKreger

Can you hear me, John?

JohnAdent

Yes, I can hear you now, John.

JohnKreger

Okay, great. So my question was trying to get at your view of how the markets are going to play out in the coming months. You talked about the fact that there’s still a lot of uncertainty. But you guys were able to really show some nice, sequential improvements in the momentum of your business as we move into the colder season. From your perspective, can the momentum continue, particularly in the food service side? Or are you thinking that maybe things may even slow down a little bit as restaurants have to deal with the fact that they can’t just rely on outdoor seating anymore?

JohnAdent

Yes, I think I think it’s going to be tough. I mean, it seems like every quarter is a year, right? I mean, the way that the team has to react in, and change to the adapting environment, and it’s from a standpoint of not only what’s happening with the customers, but raw materials, supplies, I mean, there are many cases where we have something that is a minuscule raw material to us, where all of a sudden, they have an COVID outbreak, and they’re shut down for two months. And then it’s we didn’t realize that was that critical because it’s so far down the list. But we’ve done a really good job of quantifying alternative suppliers. So no, I’m optimistic. And I’m not optimistic on the market. I’m optimistic on NEOGEN. I think the market is going to continue to be tough, I think we’re going to continue to see some challenges. I don’t know what’s going to happen in a flu season, but I’m nervous about it. Oddly enough, we’ve seen a bigger impact in this quarter on employees COVID related than last quarter. And you wouldn’t think that because with all the news and the talk at around the world, I just think it’s a couple of things that the weather was nice, and people want to get outside and I’m like everybody else I am worn out of COVID. I’m worn out of being by myself in my office and all the video conferences. But we have to stay vigilant because that social distancing is going to protect our employees and protect the business. So we’re really doing everything we can to make sure everybody’s still on point here. We think there are opportunities to help customers; we think that we’ve got things that are going to help them run their business better. So as they are approaching opportunities and they can’t be in the plants. That’s a great opportunity for NEOGEN analytics to be able to show them what they need without physically being in the facility and show them what they need across multiple sites.

So we think we’ve got a technology platform that’s going to allow us to only accelerate in this type of environment, and I think that goes to a lot of things that are happening. I don’t know if you guys saw that Frank Yiannas just put out the FDA rule to advance traceability on certain foods under the new Smarter Food Act. So that plays into what we’re doing. I mean, I’m so glad we started down that path over a year ago and developing out our analytics and our blockchain because now the industry is coming to where we’re going. And I think it’s going to be a real opportunity for us.

JohnKreger

That’s helpful. Thank you. Can you give us an update on African swine fever and how it’s impacting your swine business and your customers in that species?

JohnAdent

Yes, so John, that’s something everybody seems to be forgetting about with COVID. But it is still a major issue. And if COVID wasn’t around, this is what we’d be talking about. You saw the out — they found one dead boar on the border of Germany and Poland and China banned German imports of pork. And that’s $867 million of exports for Germany, which why you saw our kind of pork futures bump. The hog guys were getting killed in April and May; they were losing, the producers were losing almost $50 a head. Now that coincides with record profits for the processors at the same time because the raw materials are so cheap. But that’s been paradigm and they’re still losing money, but it’s only down to $10 a head. So I’m hopeful that those markets are going to strengthen. And we saw that across a lot of the markets, John, the boiler price, the boiler prices have come off their lows in April.

In May, they’re making about $0.52 cents a pound. And now it’s up to about $0.63. And the five year average is $0.88. So we’d like to see them get back to historical averages, the layer guys are making money today. Class III milk has come off its lows, it was $12. And now it’s you know, it was up to $21 in July is now at about $17 in August. But that’s enough of that group to make money. The beef guys were losing money about $10 a head through April, May, June; they’re now at breakeven or a little better. So I think the initial shock on the food supplies kind of worked its way through. So I’m pretty optimistic. It’s not — let me put it this, it’s nice to see the majority of our customers on the animal safety side making money rather than losing money.

JohnKreger

Great, thank you. One last one, Soleris, is you still in a backorder position? Or have you been able to catch up with the initial orders?

JohnAdent

We are still in a backorder for a few products. But we’ve been able to trim that tremendously. But we’ve had great demand on our new product launch.

Operator

Our next question comes from Mark Connelly from Stephens.

MarkConnelly

Thanks. What part of the appeal of the Listeria right now was that — was a huge gap between what the old test could do and the new one, which not only increased demand, but it changed the incentive, some users had to begin testing where they didn’t before. Is there anything in this gluten test that has the kind of characteristics that could actually change the audience for your testing the way that one did?

JohnAdent

I think, Mark, a better analogy might be Soleris, or Solaris next gen, traditional methods for Soleris is to test for that yeast and mold is five to seven days. And we can do it in 28, or 24 to 48 hours. So just like you’re talking about with LRN, where it — that was a traditional tests that took five days, and we did it in less than 24. It kind of changed the way that they looked at it and moved it more to an environmental test. And it could, I see that same type of opportunity for Soleris, right, so that it’s fundamentally different.

MarkConnelly

So we should think about Soleris that way but the gluten test, we really then should probably just think of as building out the reveal portfolio then.

JohnAdent

I do. And I think it is a major convenience for the customer to not have to have two separate tests, whether they’re going to do environmental or ingredient or environmental ingredient or finished product; they just have to put one test off the shelf for all their needs.

MarkConnelly

Okay, that makes sense. So just one — well, two related questions. Are you starting to see any COVID-19 changes that your customers that you think are going to be permanent in terms of protocols that maybe they’ve learned a little bit in this process? And on a related note, has COVID-19 driven any change in your thinking about what you want to acquire?

JohnAdent

Yes and yes. So not only with our customers but also with us, like we — what we — we talked about this earlier and Steve, what was the number? What percent of our kind of back office group went remote?

SteveQuinlan

70%.

JohnAdent

And if you think about that and how many are still remote?

SteveQuinlan

30% -40%

JohnAdent

Yes. And we didn’t come back to pre Covid looking, we’re looking at saying; there are certain jobs within our business that they were here that can work remotely. And they’ve been very successful working remotely. So we really challenged the team and say, what have we learned, or what’s the best practice coming out of COVID that we can take forward, and some of it is the remote workforce. The other is how we interact with the customers, I think, like I’ve talked about customers have changed in the way we interact, you’re going to have less face-to-face meetings going forward, right for a while. And we’ve been able to really develop an adapt because if you think about even our new Soleris equipment installs, a lot of those we’re doing remote, we have set up our virtual labs, we’ve got virtual installations, we have training materials; YouTube based training materials, it’s really changed the way we’ve talked about interacting with the customers. And it’s made us very efficient, and I think made us better, right?

And so I think that’s going to continue to be a positive. Now on the acquisition side; I think we have to look at those types of opportunities. We’ve talked about the FDA rule on traceability; I think that’s going to continue the USDA just put out a plan, Mindy Brashears, put out a plan yesterday, the day before about how to reduce salmonella in the food chain. And we’re getting ready to launch our salmonella test. So I think we’re heading down the right path. We’re moving in sync with the industry in the government. And I think we’ll continue to find new ways to address customer needs that we haven’t done in the past. That’s going to keep us on the front end of things.

Operator

Our next question comes from David Westenberg from Guggenheim Securities.

DavidWestenberg

Hi. Thanks for taking the follow up. So can you just talk about potential additional government contracts? I believe that you called out some in the prepared remarks. Should we be expecting more maybe contract wins if they’re in the hopper for this year? And I don’t know if you can quantify or give us a ballpark on what kind of a contribution from that kind of thing could look like.

JohnAdent

Yes, a lot of those tenders are international tenders. And what’s challenging with some of those, David, is they may be a three year tender and you win the tender, but they don’t take the product for six months, or seven months, depending on the government they have any money or not. So even though we win the tender, we don’t get to recognize any revenue for a time period after we win the tender. So they’re a little bit, they are great when you get them, they’re hard to forecast. But we do see it as an opportunity. Because as a large player in the marketplace, we’re able to efficiently supply those customers in a way that they really appreciate. So we continue to push on those types of opportunities around the world. I can’t really do a good job. And I don’t think, Steve, can do it either forecasting what that’s going to look like just because the way that they pay in the way that they come in.

DavidWestenberg

Got it. Okay. And then can you just maybe comment on what might be a little bit more color on the drags on margin. You called out a little bit of stuff, but I think you called out the rodenticides are a higher-margin product, and they did really well in the quarter. Maybe I heard that wrong. And then I traditionally have thought of genomics as being a higher-margin product, so — but that was the only account that did miss me in the quarter. So I was thinking if there’s anything to call out that I need to worry about.

JohnAdent

No, I mean, I think Steve called on genomics, we had one big customer and it was really an internal product mix that changed the way that they were using our product to a lower density chip, which was unfortunately for us it’s higher volume, lower margin, but it’s a lower density chip. So it really was a change by the large poultry customer that affected the margins in genomics. No, I mean, we just saw that. I think the big challenge is you got people that are tightening their belts, like everybody else; business is tough, environment is tough, and but we’re going to continue to grow and find opportunities and keep pushing forward.

DavidWestenberg

Perfect. Okay. So just to clarify, genomics is not necessarily a margin benefit. I know I’m sorry; I had that wrong because I thought it was a margin benefit.

JohnAdent

So within genomics there was a switch; genomics is a margin benefit within the total mix of the company.

DavidWestenberg

Got it. Okay. And then just lastly in terms of growth rate expectations, maybe next year, or you still see yourself as traditional — in Neogen, where you guys kind of say we’re a high single-digit growing business. Is it that still the expectation for the business maybe near term and long term? Put another way, we’re past COVID and —

JohnAdent

Yes, look, I’d love to get a little help from the industry. I think like we talked about last year; the market, last quarter the market was down 11 and we were relatively flat. I think the market was down 2 to 3 on food safety and we were up 8. So we’re outperforming the market. I’d love to get a little tailwind from the market, but I don’t think that’s going to happen for the next couple quarters, but that doesn’t stop us from growing.

Operator

Our next question comes from Jon Braatz from Kansas City Capital.

JonBraatz

Good morning. John, if there was a significant outbreak of African swine fever in Europe, how might that compare to the impact the African swine flu fever had on in China in terms of maybe sales of just your disinfectant products and cleaning products? I’m sort of trying to get an idea what — how Europe might be same or different than China?

JohnAdent

Yes. I think the — thanks, Jon. Thanks for the question. The difference is the type of farming, swine farming between the two regions. So when you think of China; there — even though there’s large industrial farms there’s so many backyard farms that when the disease spreads it’s just spread like wildfire because it was all those backyard hogs nose to nose touching the fences just spread through the whole country. Europe is going to have much better biosecurity measures, so while the outbreak will be could be severe and devastating for the industry; I don’t think it will be as big a ramification from an economic standpoint as it did in Asia. Now that still benefits us from a standpoint of increased hygiene protocols and increased cleaning and frequency, right? So if you were — if your process was you’re going to clean out that barn between lots of hogs and you may clean it disinfect it and then bring the next load. I can see very easily where they would clean it disinfect it; clean it disinfect and use our APT test to make sure there was nothing left over, clean it again and then bringing hogs.

JonBraatz

Okay. Is the biosecurity protocol in the hog farms in Europe as you know up to the U.S standards? I’ve been to a couple of them.

JohnAdent

Oh, yes.

JonBraatz

Okay.

JohnAdent

Yes, especially in Western Europe. I mean they’re very sophisticated, yes.

Operator

This concludes our question-and-answer session. I would like to turn the conference back over to John Adent, President and CEO for any closing remarks.

John Adent

Great. Thank you, Matt. And thank you all for joining us today. And if you haven’t already, please make sure that you return your proxy votes via mail and whether you vote via mail or not you’re certainly welcome to attend our Virtual Annual meeting which is going to be Thursday, October 8th. So if you’d like to attend, please contact Rod Poland, if you have any questions on how to participate. So thank you all very much. We appreciate your support.

Operator

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

Independent: Turkey is the biggest threat to Europe today and the Greeks need our help – Analysis
Independent: Turkey is the biggest threat to Europe today and the Greeks need our help – Analysis

Later this week, EU leaders will meet to discuss their recovery plan. They will spend a few minutes on Brexit. EU heads of government look with disbelief at Boris Johnson’s announcement that he will break international law to appease the Brexit obsessives in his party.
But there is nothing Europe can do to cure Britain’s Brexit virus.
Russia is back on the agenda with the confirmation of the attempted murder via poison of Putin’s chief opponent, Alexei Navalny. And across the frontier, the democratic uprising in Belarus will get an airing.
But today, by far the biggest threat to Europe – in terms of a foreign power that is threatening EU territory and almost everything Europe says it seeks to project as its values – comes from Turkey.
Speaking in Athens last week, the former French president, Francois Hollande, laid out his concerns about Turkey.

Hollande’s charge sheet includes multiple accusations: Erdogan is seeking to militarise the eastern Mediterranean; he has breached NATO obligations by buying Russian missiles; he has imprisoned hundreds of journalists and political opponents; he is obsessed with Islamism, promoting Islam in Europe and has converted two of the finest Byzantine Christian cathedrals in Istanbul into mosques; he flagrantly interferes in the politics of European countries including France and Germany, holding giant political rallies and insisting that Turkish EU citizens owe loyalty only to Turkey; his adventurism in Syria and his war on the Kurds are dangerous; his alliance with Libya was an act of aggression.

Read more: Independent

Look at both ‘full and empty parts’ of global glass, Turkey urges Member States
Look at both ‘full and empty parts’ of global glass, Turkey urges Member States

“The pandemic caught the world at a time when it was having difficulties in coping with various challenges” in globalization, rules-based international system and multilateralism, Recep Tayyip Erdoğan said, encouraging the delegates to look at both “the full and empty parts of the glass”.

Half empty glass

The Turkish President underscored the need to reform multilateral organizations, particularly the UN. 

Drawing attention to how “ineffective the existing global mechanisms have been” during the pandemic, he pointed out that “it took weeks, even months for the Security Council…to include the pandemic on its agenda”. 

“Effective multilateralism requires effective multilateral institutions”, stressed Mr. Erdoğan. 

“The fate of humanity cannot be left at the mercy of a limited number of countries”, he continued advocating for “comprehensive and meaningful reforms, starting with the restructuring of the Security Council”.

The upside

Looking at the glass as half-full, the Head of State maintained that the UN can be “the turning point in humanity’s quest for peace, justice and prosperity”.

International solidarity is essential for long-term solutions — President of Turkey

And against the backdrop of the coronavirus, advised using multilateral institutions and mechanisms to cooperate “in the most effective way”. 

“International solidarity is essential for long-term solutions”, Mr. Erdoğan upheld.

Global pandemic 

The President maintained Turkey’s support in fighting the virus, citing the early days of the outbreak, when his country called for “cooperation in all international platforms” and was at the forefront of efforts in the G-20 richest States, Turkic Council, the Organization of Islamic Cooperation and others.

Moreover, Turkey reached out to 146 countries and seven international organizations that requested medical equipment assistance; repatriated a hundred thousand Turkish citizens from 141 countries; and carried more than 5,500 foreigners from 47 countries to their homes.

Mr. Erdoğan echoed his call that the supply of medical equipment, drugs and vaccine development efforts “not to be made an issue of competition”. 

No matter which country they are produced in, vaccines should be offered to the “common benefit of humanity”.

Regional stability

Turning to the war in Syria, Mr. Erdoğan said that it “continues to pose a threat” to regional security and stability.

He remined that Turkey “struck the first and most serious blow” against ISIL terrorists in the region and continues to fight against the Kurdish militant PKK-YPG terrorist organization – while hosting some four million Syrian refugees

“As the international community, we cannot find a permanent solution to the Syrian issue without adopting the same principled attitude and decisive stance against all terrorist organizations”, the President of Turkey stressed, which he maintained is “also essential for ensuring safe and voluntary returns to Syria”.

“It should be a priority for all of us to resolve the conflict in Syria on the basis of the roadmap endorsed in the United Nations Security Council resolution 2254”, he spelled out.

Mr. Erdoğan asserted that the Syrian-owned and -led political process, initiated under UN auspices, “should be brought to a successful conclusion”. 

“This is the only way that Syria can achieve a lasting peace, while preserving its territorial integrity and political unity”, the President underscored.

The Turkish president congratulated his compatriot, General Assembly President Volkan Bozkır, as the first Turkish citizen to undertake the high-ranking position, saying he believed Mr. Bozkir “will be the voice and conscience of the international community”.

Full statement available here.

European Union tells UK to ‘stop the games’ on Brexit
European Union tells UK to ‘stop the games’ on Brexit

BRUSSELS: Weary EU officials prepared for another round of urgent Brexit negotiations on Tuesday, with time running out and some European capitals beginning to doubt that London even wants a trade deal.

“But please, dear friends in London: Stop the games. Time is running out,” Germany’s European affairs minister Michael Roth warned as he met colleagues in Brussels ahead of a summit of EU leaders on Thursday.

Brussels‘ chief negotiator Michel Barnier will be in London on Wednesday for informal talks with his UK opposite number David Frost on slow-moving efforts to agree a trade deal – full negotiations resume next week.

EU Commission vice-president Maros Sefcovic will meet his British counterpart Michel Gove in Brussels on Monday, just ahead of Brussels’ end-of-the-month deadline for London to drop a bill designed to rewrite the deal.

Prime Minister Boris Johnson has said that he is ready to walk away from the trade talks if there’s no progress by mid-October, and Brussels argues a deal must be done by then if it is to be implemented this year.

But – after Johnson launched British legislation to overwrite parts of the withdrawal treaty in open defiance of international law – some EU capitals think he is trying to sabotage the talks.

Irish Foreign Minister Simon Coveney, whose country has more to lose than most if talks break down, said the mood at the foreign ministers’ meeting was pessimistic.

“What has been concerning over the last couple of days for me,” he said, “from speaking to other EU foreign ministers, is that there’s a growing sense that perhaps the UK doesn’t want to deal. And that this is more about managing the blame game as the negotiations fail.

“And I have reassured them very clearly that, in my view, that is not the case.”

Britain left the European Union on Jan 31, and will leave the bloc’s single market and customs union at the end of the year. Experts fear economic chaos if no new trade deal can be agreed by then.

But Johnson’s decision to push an Internal Markets Bill in his own parliament that his own government admits would break international law by overwriting the withdrawal treaty has infuriated EU capitals.

Brussels intends to launch legal action against the measure, but will continue to negotiate a possible trade treaty in parallel to this in the weeks to come as the bill passes through the Commons and House of Lords.

“The so-called Internal Market Bill worries us extremely, because it violates the guiding principles of the withdrawal agreement, and this is totally unacceptable for us,” Roth said.

Sefcovic said he would meet Gove as joint chair of the EU-UK Joint Coordination Committee overseeing the divorce agreement, which Johnson signed last year and hailed as an “oven-ready” deal to get Britain out of Europe.

However, he warned, “we will not be renegotiating, but we are dedicated to its full and timely implementation – nothing more and nothing less.”

France’s minister for European Affairs, Clement Beaune, said Paris still hopes there will be a trade deal to head off the danger of a breakdown in trade ties on Jan 1, but that Europe would not compromise on the treaty.

“We are not going to ratify an agreement on the future relationship if there are knife wounds all over the previous chapter,” he said, referring to a withdrawal deal that Brussels and Dublin see as vital to maintaining an open border in Ireland.

Johnson has argued that his bill will instead provide a “safety net” against what he has claimed are EU threats to impose tariffs on UK internal trade and even stop food going from mainland Britain to Northern Ireland.

The EU leaders will receive a “point of information” on progress in the trade talks at their summit on Thursday, but for the moment have left the protracted wranglings in the hands of their negotiator, Barnier.

The two sides are still divided on rules for a “level-playing field” of fair competition between companies, on state aid or subsidies for EU and UK firms and on access for EU boats to British fishing waters. – AFP

The Brief, powered by ESA – Europe’s next Pandora’s Box
The Brief, powered by ESA – Europe’s next Pandora’s Box

Deep divisions have long been threatening to turn the EU’s foreign policy into a toothless tiger. Nevertheless, abolishing the principle of unanimity is not necessarily the solution.

With 27 players in one room, of course there are divisions, stemming from different analyses of the problem, conflicting national interests or different external influences.

But the longer there is disagreement, the more the EU’s “credibility is at stake”, as some Brussels diplomats kept religiously repeating over the past few weeks, marked by indecision or lack of unity in three foreign policy challenges: Belarus, Turkey and Russia.

It is no coincidence that European Commission President Ursula von der Leyen once again called for establishing qualified majority voting in EU foreign policy, this time especially in sanction matters.

“Why are even simple statements on EU values delayed, watered down or held hostage for other motives?” von der Leyen asked. “When member states say Europe is too slow, I say to them ‘be courageous and finally move to qualified majority voting.”

Under QMV, a vote would need 55% of member states representing at least 65% of the total EU population to pass in the Council. This would allow the EU to act without the increasingly onerous process of securing unanimity among the EU27.

To most foreign policy pundits, it is a long-overdue step.

If the EU wants to be taken seriously, it needs to act faster than it did in the past few years, and much more quickly than it currently does. The crisis and emergencies since the start of von der Leyen’s mandate have particularly proved that.

QMV could indeed increase the EU’s efficiency by ensuring that a single state or a small group cannot block decisions, allowing the bloc to respond to acute external challenges.

But even so, qualified majority voting could actually risk creating more animosities than there already are. Take the following example:

Cyprus blocked the proposed EU sanctions against Belarus on Monday (21 September), citing the bloc’s inaction over Turkish aggression in the Eastern Mediterranean.

Some painted Nicosia’s veto as ‘hostage taking’, a not-so-rare case of a blackmail attempt in EU decision-making.

For others, it was a desperate act by a small country to make fellow member states care about a threat that does not look too existential to most other members.

To be honest, if it were Germany or France asking for support, we would have probably moved forward with sanctions more quickly.

Which is why for small or less powerful member states, an extension of QMV to foreign policy raises fears that the bigger EU players will always be able to overrule them and ignore their problems.

The Commission seems keen to extend QMV to three foreign policy areas – sanctions, human rights promotion and launching civilian missions – with sanctions in pole position to become testing ground.

Love it or hate it, this is how Europe’s founding fathers set the rules.

Whether they will change in the future, as so many other crucial things in Brussels, is up to – oh, irony – the member states.


A message from ESA:  As a widely recognised umbrella association representing most indoor tanning operators, equipment manufacturers and distributors in Europe, European Sunlight Association has published a Scientific Factsheet on the health benefits of moderate exposure to UV radiation with a focus on vitamin D.

The Roundup

The European Commission will have the last say through legislative acts when it comes to the enforcement of the EU’s new migration pact due to be presented this Wednesday (22 September), sources have told EURACTIV.
China accepts well-intended criticism coming from the EU, but it does not accept malicious attacks and will not allow anyone to meddle in its internal affairs, the country’s ambassador to the EU, Zhang Ming, told the European Parliament’s foreign affairs committee (AFET).

Look out for…

  • European Commission to announce proposal for a new EU policy on asylum and migration
  • Election of committee chairs and vice-chairs for the European Parliament’s Special Committees on foreign interference in all democratic processes in the EU, on artificial intelligence and the digital transformation, the Special Committee on beating cancer, the Subcommittee on taxation and the Committee of inquiry on animal transport 

Views are the author’s

The European Union is postponing a leaders’ summit because the EU Council president is going into a
The European Union is postponing a leaders’ summit because the EU Council president is going into a
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EU summit postponed over COVID-19 fears as European Council President goes into quarantine
EU summit postponed over COVID-19 fears as European Council President goes into quarantine
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European Council President Charles Michel has gone into quarantine after a security officer tested positive for COVID-19.


Yves Herman/Agence France-Presse/Getty Images

   A key European Union summit planned for later this week has been postponed after European Council President Charles Michel went into quarantine.</p> <p>The president’s spokesman Barend Leyts tweeted that Michel had gone into isolation after a security officer, with whom he was in close contact early last week, tested positive for COVID-19.
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   “The President is tested regularly and tested negative yesterday,” Leyts said in the tweet, adding, “Respecting Belgian rules, he has gone into quarantine as of today.”
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  </div> 
   The meeting of EU leaders was scheduled to take place on Thursday and Friday but has now been postponed until Oct. 1 and 2.</p> <p>Among the issues due to be discussed at the gathering in Brussels were relations with Turkey and progress in the Brexit talks, with the next formal round set to take place between Sept. 28 and Oct. 2.</p> <p>On Tuesday, Turkey’s President Recep Tayyip Erdoğan said Turkey and Greece were ready to resume exploratory talks amid a <a href="https://www.wsj.com/articles/showdown-in-the-mediterranean-11599780440" target="_blank" class="icon none" rel="noopener noreferrer">dispute over territorial waters</a> in the eastern Mediterranean, following a scheduled videoconference call with Michel and German Chancellor Angela Merkel.</p> <p>Cyprus’ veto of EU sanctions against Belarus was also on the agenda for the now postponed summit. EU foreign ministers failed to agree sanctions against Belarusian officials on Monday after Cyprus blocked the plan.


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European Union postpones summit after...
European Union postpones summit after…

The European Union has postponed its summit for a week because EU Council President Charles Michel has gone into quarantine after a close collaborator was diagnosed with Covid-19.

Spokesman Barend Leyts said Mr Michel “today learned that a security officer, with whom he was in close contact early last week, tested positive for Covid”.

Mr Leyts said the European Council chief is “respecting Belgian rules” and “has gone into quarantine as of today”.

The summit, originally set for Thursday and Friday, aims to address issues as wide-ranging as Brexit negotiations, climate change and tensions between Greece and Turkey over energy rights.

Preparations for the meeting were in full swing when Mr Michel made the sudden announcement. He postponed the summit by a week, to October 1-2.

Live summits with the leaders of EU nations coming to Brussels only resumed over the summer. Throughout the spring, they met through video conferences while staying in their own capitals.

As the chief of the European Council, Mr Michel is the host to the regular summits of EU leaders. In July, he forced the 27 leaders to stay for four days in Brussels to broker an 1.85 trillion-euro agreement on a pandemic recovery fund and long-term EU budget.

Advertising

The postponement is a setback to the EU leaders’ hope for a return to normality.

Mr Michel, who tested negative for the virus on Monday, did not want to risk bringing the leaders together in one room, however big, for fear of further exposure.

The decision to delay took place against a backdrop of irritation when government officials do not take the same care with precautionary measures as the general public.

Last month, the chief EU trade negotiator and commissioner Phil Hogan had to resign when he admitted flouting some measures during a summer stay in his native Ireland.

Almost 150,000 people in the European Union have died in the pandemic, which also has thrown the bloc into the worst economic crisis of its history.

Italians vote
Italians vote “Yes” to downsize Parliament – Vatican News

By Susy Hodges

Despite the Covid-19 pandemic, Italians turned out in large numbers for the referendum. They were voting to approve a law that amends the Italian constitution and which had already been passed in parliament.  Specifically, the law reduces the number of lawmakers from 630 to 400 in the Chamber of Deputies and from 315 to 200 in the Senate. It means the total number of parliamentarians will be cut from the present 945 to 600.

The referendum had cross-party support but had been strongly pushed in particular by the Five Star Movement which is the main party in Italy’s governing coalition. Five Star says the reduction will streamline parliament, reduce corruption and save hundreds of millions of euros in salaries and expenses. In a post on Twitter, Five Star had said the bill would save the country one billion euros over 10 years.

However, critics had argued that the move would weaken democracy and increase the influence of lobbyists in parliament. 

The vote was originally scheduled for May but was delayed due to the pandemic which has killed more than 35,000 people in Italy.

Five Star said the referendum’s outcome showed voters still responded to the party’s anti-establishment, reform-minded ethos.

Nicola Zingaretti, the leader of the centre-left Democratic Party which is part of the government coalition said the victory of the “Yes” vote opened the way for a season of reforms.

Regional and Municipal elections

The referendum was held alongside several key regional elections. Here the results were seen as a boost for the Democratic Party but a setback for Matteo Salvini’s rightwing League Party.

Salvini, a former Interior Minister, had been hoping to make big gains, especially in Tuscany which has been ruled by centre-left parties for over 50 years.  But the results showed that the League and a rightwing ally only managed to score a victory in the region of Marche in central Italy.

In addition to the regional poll, Italians were also voting in local elections to choose over 1,000 mayors.

The regional election was seen as a test for the government over its handling of the pandemic. Italy was the first European country to issue a lockdown and was an early epicentre of the virus.

However, in recent weeks the country has avoided, up to now, seeing a very sharp spike in the number of cases, unlike many of its European neighbours.

Listen to the report by Susy Hodges

EU summit postponed after European Council President Charles Michel forced to self-isolate
EU summit postponed after European Council President Charles Michel forced to self-isolate

The EU summit has been postponed for a week because European Council President Charles Michel has gone into quarantine.

Spokesman Barend Leyts said on Tuesday that Michel ‘today learned that a security officer, with whom he was in close contact early last week, tested positive for COVID’.

Leyts said that the European Council chief is ‘respecting Belgian rules’ and ‘he has gone into quarantine as of today’.

The EU summit has been postponed for a week because Council President Charles Michel (pictured) has gone into quarantine

The EU summit has been postponed for a week because Council President Charles Michel (pictured) has gone into quarantine

The summit set for Thursday and Friday was to address a number of issues, including the important next stages of the Brexit negotiations.

Climate change and the tensions between Greece and Turkey over energy rights were also on the agenda for the summit.

Preparations for the meeting were already in full swing when Michel made the sudden announcement. 

He postponed the summit by one week, to October 1-2.

Preparations for the meeting were already in full swing (pictured) when Michel made the sudden announcement

Preparations for the meeting were already in full swing (pictured) when Michel made the sudden announcement

Michel made headlines earlier this month when he criticised Boris Johnson’s plans to override the Brexit divorce deal.

He said in a tweet: ‘The Withdrawal agreement was concluded and ratified by both sides, it has to be applied in full.

‘Breaking international law is not acceptable and does not create the confidence we need to build our future relationship.’ 

He made headlines earlier this month when he insisted breaking international law was 'not acceptable' in relation to the withdrawal agreement

He made headlines earlier this month when he insisted breaking international law was ‘not acceptable’ in relation to the withdrawal agreement

Live summits with the leaders of EU nations coming to Brussels only resumed over the summer.

Throughout the spring, they met through video conferences while staying in their own capitals.

The postponement is a setback to the EU leaders’ hope for a return to normalcy.

WHO/Europe’s Regional Director begins visit to Russian Federation with commitment to global solidarity in fight against COVID-19
WHO/Europe’s Regional Director begins visit to Russian Federation with commitment to global solidarity in fight against COVID-19

On the first day of a country visit to the Russian Federation WHO’s Regional Director for Europe, Dr Hans Kluge, met with the Minister of Health of the Russian Federation, Dr Mikhail Murashko and Dr Anna Popova, head of the Russian Federation’s Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor).

Discussions covered a number of topics including the country’s response to COVID-19 and the importance of global cooperation in the on-going pandemic.

Related to the importance of multilateralism and global cooperation, during a press briefing alongside the Minister of Health, Dr Kluge commended the Russian Federation for its COVID-19 vaccine research and development efforts as well as sharing information with WHO as part of the global effort to find a safe and effective vaccine.

During the meeting with Dr Popova of Rospotrebnadzor, Dr Kluge discussed Russia’s response to COVID-19, including the importance of global solidarity in the fight against the virus. Rospotrebnadzor have been an important part of WHO’s Global Outbreak Alert and Response Network (GOARN) which included a COVID-19 support mission in Tajikistan. Linked to COVID-19, Dr Kluge and Dr Popova also discussed the high-levels of influenza vaccination in the country.

The first day of the visit also included a meeting with the mayor of Moscow, Sergey Sobyanin as well as Mr Igor Shuvalov, Chair of the State Development Corporation of the Russian Federation and a member of the Pan-European Commission on Health and Sustainable Development.

Nobel laureate: pandemic could undo progress in children’s rights - Vatican News
Nobel laureate: pandemic could undo progress in children’s rights – Vatican News

By Robin Gomes

Kailash Satyarthi has been rescuing children from slavery and trafficking for the past four decades. He fears the pandemic, which is wreaking havoc on the Indian economy, is pushing millions of people into poverty, with families forced to put their children to work to make ends meet.

“The biggest threat is that millions of children may fall back into slavery, trafficking, child labour, child marriage,” Satyarthi, told Reuters news agency. 

He and Pakistan’s Malala Yousafzai, were jointly awarded the 2014 Nobel Peace Prize, “for their struggle against the suppression of children and young people and for the right of all children to education”.

Child labour

The United Nations children’s fund, UNICEF, estimates there are 152 million children – 64 million girls and 88 million boys – in child labour globally, accounting for almost one in ten of all children.

While rates of child labour have declined over the last few years, about 10.1 million children are still in some form of slavery in India. 

Across India, child labourers can be found in a variety of industries such as brick kilns, carpet-weaving, garment-making, domestic service, food and refreshment services (such as tea and food stalls), agriculture, fisheries and mining.

“Once children fall into that trap they can be pulled into prostitution and can be trafficked easily … this is another danger which governments have to address now,” Satyarthi said.  He believes sexual abuse of children is also on the rise due to the pandemic.

The Bachpan Bachao Andolan (Save Childhood Movement), which Satyarthi founded in 1980, has so far rescued more than 90,000 children from slavery, including bonded labourers, and helped in their successful reintegration, rehabilitation and education.  

Earlier this month, his organisation backed by police, rescued dozens of girls during a raid on a shrimp processing unit in western India. 

Child marriage

UNICEF estimates at least 1.5 million girls under 18 get married in India, which makes it home to the largest number of child brides in the world, accounting for a third of the global total.  Nearly 16 per cent of adolescent girls aged 15-19 are currently married.

While the prevalence of girls getting married before age 18 has declined from 47 per cent to 27 per cent between 2005-2006 and 2015-2016, UNICEF considers it is still too high.

According to government estimates, more than 10 million workers engaged in the informal and unprotected labour market, lost their jobs during the prolonged lockdown from the end of March to early June, pushing them deeper into poverty.

With more mouths to feed and the inability to make ends meet, pressure is building on families to give off their girls in marriage.

Childline, a children’s helpline, told BBC there is a 17 per cent increase in distress calls related to early marriage of girls in June and July this year compared to 2019.

Supporting poorest families

According to Satyarthi, the pandemic has exposed and exacerbated the deep inequalities faced by the poorest families, who are the least equipped to protect themselves in times of global crisis.

“However, despite unprecedented government spending to protect national interests and the global economy,” he warned, “little has been allocated to protect the 1 in 5 children who live on $2 per day or less.”  Without urgent action now, he said, “we risk losing an entire generation”.

If the world gave the most marginalised children and their families their fair share, which translates to 20 per cent of the COVID-19 response for the poorest 20 per cent of humanity, he said, the results would be transformative.

In a recent statement, Laureates and Leaders for Children, which Satyarthi founded in 2016, warned that COVID-19 could turn the clock back a decade or more on progress made on the issues of child labour, education, and health for hundreds of millions of children.

“I cannot be satisfied even if one single child is enslaved,” Satyarthi told Reuters. “It means there is something wrong in our policy, in our economy, in our society. We have to ensure that not a single child is left out,” he added.

World: ACT joins global religious leaders urge end to “broken state of European migration”
World: ACT joins global religious leaders urge end to “broken state of European migration”

ACT Alliance is one of a dozen global and regional religious organizations that released an advocacy statement on the situation of migrants and refugees in Europe that defines their calling as Christians to “welcome the stranger,” and urges the creation of a world in which “we become human together.”

“Solidarity should be the guiding principle governing migration and particularly refugee reception,” the statement says. “We expect the EU to reject the discourse and politics of fear and deterrence, and to adopt a principled stance and compassionate practice based on the fundamental values on which the EU is founded.”

The organisations have issued the statement in advance of the EU Commission’s presentation of its new Migration Pact on 23 September.

“Our organizations represent churches throughout Europe and globally as well as church-based agencies particularly concerned with migrants, refugees and asylum seekers,” the statement reads. “As Christian organizations, we are deeply committed to the inviolable dignity of the human person created in the image of God, as well as to the concepts of the common good, of global solidarity and of the promotion of a society that welcomes strangers, cares for those fleeing danger, and protects the vulnerable.”

The statement refers to the recent fire at the Moria camp, which left 13,000 migrants without a home.

“The events of the night of 8 September 2020 in the Moria camp and during the following days have once again exposed the fundamentally broken state of European migration and asylum policy and the suffering it has created,” the statement says, pointing to “the desperation of people seeking protection who have often been forced to live for years in inhumane conditions, the anger and frustration of locals who feel that Europe has left them alone with the challenge of reception and care, the current response has addressed the symptoms of a greater problem but not the actual cause, and a reaction by the EU which expresses sympathy but shows a profound lack of responsibility and no real commitment to helping those in need of protection as well as the Greek state and the local population hosting them.”

COVID-19 has exacerbated already inhumane living conditions for migrants, the statement notes. “COVID-19 and its consequences have in many places rendered the already difficult situation in these countries and for the displaced populations they host even more precarious: be it due to inadequate hygiene in these facilities or the dramatic cuts of food rations and other assistance available to them,” the statement reads. “Widespread restrictions on internal and cross-border movement in the wake of the pandemic have further reduced people’s access to protection. In addition, the economic survival of many people on the move, as well as their hosts, has been imperiled by lockdowns and related measures, which have hit those employed in the informal sector particularly hard, and have had a disproportionate effect on women and their livelihoods.”

The religious organizations commit themselves to “advocating for a more dignified approach to the reception, protection, and care of people on the move.” It states that “churches and church-based agencies have been and will be proactive in offering a compassionate welcome, and promoting social integration and a just and peaceful living together, in Greece and the whole of Europe and beyond.”

The statement also addresses the public discourse in which “migrants and refugees are often the focus for hate speech in social media, as well as distorted and dehumanizing portrayals in the media” and calls for media to “respect the human dignity of migrants and refugees, ensure balanced coverage of their stories, engage with migrants and refugees and enable them to tell their own stories, and to avoid stereotypical, negative expressions, as well as victimization and oversimplification.”

“We also share the conviction that the core values of the European Union regarding human dignity and respect for human rights must be reflected in its day-to-day politics,” the statement says.

The statement is co-signed by the ACT Alliance, the Anglican Communion, the Churches’ Commission for Migrants in Europe, the Conference of European Churches, the Evangelical Church of Greece, the Integration Center for Migrant Workers — Ecumenical Refugee Program, Non Profit Organisation of the Church of Greece, the Lutheran World Federation, the Pontifical Council for Promoting Christian Unity, the European Region of the World Association of Christian Communication, the World Communion of Reformed Churches, the World Communion of Reformed Churches (European Region), the World Council of Churches and the World Methodist Council.

Read the full statement of 22 September 2020

Photo gallery: Churches’ work supporting refugees in Europe

Social media package

Media Contact:
Simon Chambers, Director of Communications
Email: simon.chambers@actalliance.org
Tel: +1 416 435 0972

Europe and the New Middle East
Europe and the New Middle East

Alliances in the Middle East are changing but the EU has been little engaged with the new diplomatic shifts and risks becoming irrelevant in the region, writes Jonathan Spyer.

Jonathan Spyer is the director of the Middle East Center for Reporting and Analysis and a fellow at the Middle East Forum.

The signing of agreements for  “full normalization” of diplomatic, economic and all relations’  between Israel, the United Arab Emirates and Bahrain at the White House this week largely formalizes an existing reality.

These countries share common perspectives and common interests on the key strategic issues facing the Middle East region.  Behind the scenes, they have been cooperating for quite a while.

The relevant files in this regard are: the challenge represented by the regional ambitions of Iran, (Israel’s chief security concern), Turkish regional expansion – bearing the banner of Sunni political Islam in its Muslim Brotherhood iteration (the particular focus for the Emiratis), and the implications for these of an emergent lighter US footprint in the Mid-East, alongside the growing influence of the Chinese in the region.

The camp of states aligned on these issues is not limited to Jerusalem, Manama and Abu Dhabi.  Egypt, Saudi Arabia, Jordan, and Morocco share similar concerns. The emergent strategic picture in the Middle East is one of competition between this pro-western alliance, whom America are looking to strengthen and build, and the rival blocs of Iran and Turkey, with their allies and clients.

Ten years after the outbreak of the Arab Spring, large swathes of the Arabic speaking world are fragmented and partially governed. Yemen, Libya, Iraq, Syria and Lebanon are today geographical spaces, rather than states in the full sense of the word.

The presence of Iranian and Turkish proxies can be seen throughout all these nations. Across these collapsed spaces, in the Mediterranean, and in the Gulf, the competition between the rival alliances will be engaged.

In the capitals of Europe, there is as yet only limited understanding of this new and emergent picture.  As a result, European countries are increasingly irrelevant or invisible in the diplomacy of the Middle East.

The still dominant perspectives in Europe belong largely to the era now fading: the supposed centrality of the Israeli-Palestinian conflict to Mid-East stability, the desire to return to the Iran nuclear agreement, a more general preference for formal and multi-lateral agreements, while the region favours the tacit, the pragmatic and the bilateral.

As a result, European countries have played no part in the emergence and crystallization of the tacit alliance of pro-western countries of which Israel and the UAE form a part. This alliance has emerged through bilateral connections, but with the quiet encouragement and tutelage of the US.

Similarly, the US policy of maximum pressure on Iran, strongly supported by pro-western regional states, is opposed by key European countries.  They favour a return to the JCPOA. In so doing, again, Europe will advance not its interests, but rather its irrelevance.

On the issue of Turkish aggression in the Eastern Mediterranean, France and Greece are playing a vital role.  No united European stance has been forthcoming, however.  Italy, one of the EU’s other leading powers sits on the opposite side to France, remaining aligned with Turkey.

The fear of President Erdogan’s use of Syrian migrants as a tool of intimidation apparently remains.

Today, the UAE is aligned with Egypt and General Khalifa Haftar in Libya, against the Turkish and MB-backed Feyaz Sarraj government in Tripoli. The UAE, backed by Saudi Arabia, is seeking to create a network of alliances to challenge and turn back Turkish ambitions in the east Mediterranean.

Israel’s relations with Turkey formally remain, but are in the deep freeze, with no sign of improvement on the horizon (though trade remains brisk).  Ankara is currently domiciling an active Hamas office in Istanbul. It was recently revealed that the Turks have begun to offer citizenship to Hamas operatives resident in Turkey.

As the contest with the Turks in the eastern Mediterranean heats up, the Emiratis perceive Israel as a natural partner in that arena, too.  In response to a Turkish dispatch of a survey ship accompanied by warships to the disputed area on August 10, Israel issued a clear statement of support for Greece, for the first time.

The statement, issued by Israel’s Foreign Ministry, asserted that “Israel is following closely as tension rises in the eastern Mediterranean. Israel expresses its full support and solidarity with Greece.” Prime Minister Netanyahu later reaffirmed this position.

So the emergent alliance to contain Turkey in the east Mediterranean includes Egypt, the UAE, Israel, Greece, France and Cyprus.  There ought to be a united European response to this key challenge, taking place on Europe’s very doorstep.  Such a response has yet to emerge.

The East Mediterranean situation is characterized by US absence.  Indeed, underlying the whole strategic picture in the region is the reality of US drawdown.

US weariness with the Mid-East, urgent internal questions, emergent energy independence and the growing challenge of China are all leading to a focus away from the Mid-East.  This is bringing US allies closer along bilateral lines.

There is a place here for European influence, and for a major European role. But it is dependent on Europe acquainting itself with the emergent, profoundly changed the strategic realities of the region.  This has not yet happened.  It should happen soon.

Buddhist Times News – Tibetan peace marchers joined by 150 demonstrators before the UN calling to hold China accountable for violations
Buddhist Times News – Tibetan peace marchers joined by 150 demonstrators before the UN calling to hold China accountable for violations

Tibetan peace marchers joined by 150 demonstrators before the UN calling to hold China accountable for violations

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By Bureau Reporter

Five Tibetan Peace Marchers joined by around 150 Tibetan demonstrators before the UN calling to hold China accountable for violations.

The five Tibetan peace marchers holding the peace march from Zurich since 8 September 2020 reached Geneva and joined the peaceful demonstration organized by the Tibetan Community of Switzerland and Lichtenstein (TCSL) on 18 September 2020 before the UN Building, Geneva.

The five Tibetan peace marchers Tenam Phuntsok, Pempa Tsering, Tashi Namgyal, Gelek Namgyal and Lobsang Tsangmada joined around 150 Tibetan demonstrators who had assembled in front of the United Nations building in Geneva side-lining the ongoing 45th UN Human Rights Council session to draw the attention of the UN and the member states to the worsening situation of human rights in Tibet.

Following strict physical distancing and safety-related norms due to Wuhan originated COVID-19 pandemic, members of the community assembled at the Place des Nation in protest against China’s continued violation of human rights in Tibet and other regions under China’s control. The ongoing 45th UN Human Rights Council session is being held in much restricted manner similar to the last session.

Representative at Tibet Bureau Geneva Chhimey Rigzen addressing the gathering.

Representative at Tibet Bureau Geneva Chhimey Rigzen, Member of Tibetan Parliament-in-Exile Jampa Samdo, President of the Tibetan Community of Switzerland and Lichtenstein Norbu Tsamda, Vice- President of Tibetan Women’s Association of Switzerland Norzom Jordenkhangsar and Media Officer of Swiss-Tibetan Friendship Association Dr. Uwe Meya  commended the peace marchers and honoured them with traditional Tibetan scarf Khatag. The earlier peace marchers who had carried out similar marches and cycle rallies were also honored.

Speaking on the worsening human rights situation in Tibet, Representative Chhimey Rigzen highlighted that, “the Wuhan originated COVID-19 has wreaked havoc in the world over. But it has made the situation much worse for Tibetans inside Tibet. China is continuing to suppress the Tibetans and its policies are aimed at Sinicization of Tibetan youth depriving them of learning the Tibetan language and practicing the Tibetan Buddhists which are important markers of Tibetan culture.”

The peace marchers as well as President of TCSL submitted petitions to the UN addressed to UN High Commissioner for Human Rights Michelle Bachelet.

-Filed by Tibet Bureau Geneva

Five Tibetan Peace Marchers joined by around 150 Tibetan demonstrators before the UN calling to hold China accountable for violations.
Representative at Tibet Bureau Geneva Chhimey Rigzen, Member of Tibetan Parliament-in-Exile Jampa Samdo, President of the Tibetan Community of Switzerland and Lichtenstein Norbu Tsamda, Vice- President of Tibetan Women’s Association of Switzerland Norzom Jordenkhangsar and other representatives with the five peace marchers.

source – cta

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