Island Air is Ellison's latest buy

How do you follow the purchase of an island in Hawaii?

If you're Oracle Chief Executive Larry Ellison, you buy an airline so you can hop to and from your tropical paradise.

Ellison has been on a shopping spree lately, buying 98% of the island of Lanai in June from Los Angeles billionaire David Murdock and then, in November, buying a beachfront Malibu home from film and TV producer Jerry Bruckheimer.

Ellison's most risky acquisition may be Island Air, which he bought Wednesday through a holding company.

The exact purchase prices of Ellison's recent deals have not been disclosed, but local observers value the 141-square-mile island at more than $500 million and the three-bedroom, three-bath Malibu pad at more than $3.65 million. The details of the airline deal were not announced.

Island Air, a regional carrier serving airports on all major Hawaiian islands, has 245 employees and three turboprop planes, with 224 weekly flights between the islands of Oahu, Maui, Molokai, Lanai and Kauai.

Lanai, the sixth-largest Hawaiian island, was once a pineapple plantation and is still sparsely inhabited. It includes two resort hotels and two golf courses with clubhouses, according to Hawaii's Public Utilities Commission.

But Ellison did not buy the airline just to get to and from his island, airline officials say.

He hopes to expand the businesses to serve locals visiting relatives on the islands and to fly mainland and foreign tourists throughout the island state, airline officials said. The airline plans to retire two 1980s-era planes and expand to four or five new ATR 72 turboprops by the end of the year.

But Ellison should not get his hopes up about pocketing big profits, said Ray Neidl, an aviation analyst for Nexa Capital Partners in Washington, D.C.

"It's a high-risk situation with no significant margins, at least initially," he said of owning an airline.

And if Ellison hopes to expand the business, he should expect to get some resistance from the big carrier on the island, Hawaiian Airlines, Neidl added. "It really depends on what Hawaiian does."

Island Air began in 1980 as Princeville Airways, carrying passengers from Kauai to Honolulu. The history of the carrier has not always been blue skies and soft landings.

"In our 30-plus years, we had our ups and downs, pardon the pun," said Michael Rodyniuk, a senior consultant to the airline.

Like most airlines across the country, he said, Island Air struggled during the economic turmoil between 2008 and 2012 but expects to thrive with a surge in tourism that Hawaii has been enjoying in the past year or so.

The state welcomed a record 8 million visitors in 2012, surpassing the previous high of 7.6 million visitors in 2006.

"All major markets are up," Rodyniuk said.

The previous owner of the airline, California businessman Charles Willis IV, had been looking for a buyer for the airline and had put all 245 employees on notice that layoffs could begin as soon as March 11 if a buyer was not found, he said. "So Mr. Ellison saved 245 jobs," Rodyniuk said.

Forbes ranks Ellison as the third-richest American, with a net worth of $36 billion. He has cut big checks in the past on high-priced properties in Malibu, Lake Tahoe, Rancho Mirage and other locations.

But unlike real estate, air carriers are an investment that can give investors nightmares.

Virgin America, a California-based airline partly owned by millionaire Richard Branson, has been operating for more than five years without recording a profitable year.

California Pacific Airlines is the brainchild of Encinitas businessman Ted Vallas, who has already invested more than $6 million of his own money but has spent the last year trying to clear federal red tape so he can begin selling tickets.

And then there are the 11 other airlines — including American, Delta, United and US Airways — that have filed for bankruptcy since 2000.

"The profit margins on airlines, even though they are improving, are not that attractive," Neidl said.

hugo.martin@latimes.com

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Race for L.A. city controller heats up

A previously low-profile race for Los Angeles city controller has begun to heat up as opponents of City Councilman Dennis Zine accuse him of "double dipping" the city's payroll and question why he is considering lucrative tax breaks for a Warner Center developer.

Zine, who for 12 years has represented a district in the southeast San Fernando Valley, is the better known of the major candidates competing to replace outgoing Controller Wendy Greuel.

The others are Cary Brazeman, a marketing executive, and lawyer Ron Galperin. Zine has raised $766,000 for his campaign, more than double that of Galperin, the next-highest fundraiser, and has the backing of several of the city's powerful labor unions.

He also has been endorsed by Mayor Antonio Villaraigosa and several of his council colleagues. Galperin is backed by the Service Employees International Union, one the city's largest labor groups, and Brazeman is supported by retired Rep. Diane Watson and several neighborhood council representatives.

With the primary ballot less than a week away, Brazeman and Galperin have turned up the heat on Zine, hoping to push the race beyond the March 5 vote. If no one wins more than 50% of the ballots cast, the top two vote-getters will face a runoff in the May general election.

In a recent debate, Zine's opponents criticized him for receiving a $100,000 annual pension for his 33 years with the Los Angeles Police Department and a nearly $180,000 council salary. Brazeman and Galperin called it an example of "double dipping" that should be eliminated.

That brought a forceful response from Zine, who shot back that he gives a big portion of his police pension check to charities.

"I am so tired of hearing 'double dipping,' " he said. "I worked 33 years on the streets of Los Angeles. I have given over $300,000 to nonprofits that need it.... That's what's happened with that pension."

In the same debate, Brazeman accused Zine of cozying up to a Warner Center developer by pushing for tax breaks on a project that already has been approved. The nearly 30-acre Village at Westfield Topanga project would add 1 million square feet of new shops, restaurants, office space and a hotel to a faded commercial district on Topanga Canyon Boulevard.

"The councilman proposed to give developers at Warner Center tens of millions of dollars in tax breaks even though it's a highly successful project," he said. "He wants to give it away."

City records show that less than a month after the development was approved in February 2012, Zine asked the council for a study looking at possible "economic development incentives" that could be given to Westfield in return for speeding up street and landscaping enhancements to the project's exterior.

The motion's language notes that similar tax breaks have been awarded to large projects in the Hollywood and downtown areas, and that "similar public investment in the Valley has been lacking." Westfield is paying for the $200,000 study.

Zine defended his decision before the debate audience, saying if the study finds that the city will not benefit, no tax breaks will be awarded. "If there's nothing there, then they get nothing," Zine said.

The controller serves as a public watchdog over the city's $7.3-billion annual operation, auditing the general fund, 500 special fund accounts and the performance of city departments. Those audits often produce recommendations for reducing waste, fraud and abuse.

But the mayor and the council are not obligated to adopt those recommendations, and as a result the job is part accountant, part scolder in chief. All the candidates say they will use their elective position not only to perform audits but also to turn them into action.

Their challenge during the campaign has been explaining how they will do that.

Zine, 65, says his City Hall experience has taught him how to get things done by working with his colleagues. He won't be afraid to publicly criticize department managers, he said, but thinks collaboration works better than being combative.

"You can rant and rave and people won't work with you," he said. "Or you can sit down and talk it out, and you can accomplish things."

Galperin, 49, considers himself a policy wonk who relishes digging into the details to come up with ways to become more efficient with limited dollars and to find ways to raise revenue using the city's sprawling assets. For instance, the city owns two asphalt plants that could expand production and sell some of its material to raise money to fix potholes, he said.

He's served on two city commissions, including one that found millions of dollars in savings by detailing ways to be more efficient. Zine is positioning himself as a "tough guy for tough times," but the controller should be more than that, Galperin said.

"What we really need is some thoughtfulness and some smarts and some effectiveness," he said. "Just getting up there and saying we need to be tough is not going to accomplish what needs to be done."

Brazeman, 46, started his own marketing and public relations firm in West Los Angeles a decade ago and became active in city politics over his discontent with a development project near his home. He has pushed the council to change several initiatives over the last five years, including changes to the financing of the Farmers Field stadium proposal that will save taxpayer dollars, he said.

As controller, he would pick and choose his battles, and, Brazeman said, be "the right combination of constructive, abrasive and assertive."

catherine.saillant@latimes.com

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Well: What Housework Has to Do With Waistlines

Phys Ed

Gretchen Reynolds on the science of fitness.

One reason so many American women are overweight may be that we are vacuuming and doing laundry less often, according to a new study that, while scrupulously even-handed, is likely to stir controversy and emotions.

The study, published this month in PLoS One, is a follow-up to an influential 2011 report which used data from the U.S. Bureau of Labor Statistics to determine that, during the past 50 years, most American workers began sitting down on the job. Physical activity at work, such as walking or lifting, almost vanished, according to the data, with workers now spending most of their time seated before a computer or talking on the phone. Consequently, the authors found, the average American worker was burning almost 150 fewer calories daily at work than his or her employed parents had, a change that had materially contributed to the rise in obesity during the same time frame, especially among men, the authors concluded.

But that study, while fascinating, was narrow, focusing only on people with formal jobs. It overlooked a large segment of the population, namely a lot of women.

“Fifty years ago, a majority of women did not work outside of the home,” said Edward Archer, a research fellow with the Arnold School of Public Health at the University of South Carolina in Columbia, and lead author of the new study.

So, in collaboration with many of the authors of the earlier study of occupational physical activity, Dr. Archer set out to find data about how women had once spent their hours at home and whether and how their patterns of movement had changed over the years.

He found the information he needed in the American Heritage Time Use Study, a remarkable archive of “time-use diaries” provided by thousands of women beginning in 1965. Because Dr. Archer wished to examine how women in a variety of circumstances spent their time around the house, he gathered diaries from both working and non-employed women, starting with those in 1965 and extending through 2010.

He and his colleagues then pulled data from the diaries about how many hours the women were spending in various activities, how many calories they likely were expending in each of those tasks, and how the activities and associated energy expenditures changed over the years.

As it turned out, their findings broadly echoed those of the occupational time-use study. Women, they found, once had been quite physically active around the house, spending, in 1965, an average of 25.7 hours a week cleaning, cooking and doing laundry. Those activities, whatever their social freight, required the expenditure of considerable energy. (The authors did not include child care time in their calculations, since the women’s diary entries related to child care were inconsistent and often overlapped those of other activities.) In general at that time, working women devoted somewhat fewer hours to housework, while those not employed outside the home spent more.

Forty-five years later, in 2010, things had changed dramatically. By then, the time-use diaries showed, women were spending an average of 13.3 hours per week on housework.

More striking, the diary entries showed, women at home were now spending far more hours sitting in front of a screen. In 1965, women typically had spent about eight hours a week sitting and watching television. (Home computers weren’t invented yet.)

By 2010, those hours had more than doubled, to 16.5 hours per week. In essence, women had exchanged time spent in active pursuits, like vacuuming, for time spent being sedentary.

In the process, they had also greatly reduced the number of calories that they typically expended during their hours at home. According to the authors’ calculations, American women not employed outside the home were burning about 360 fewer calories every day in 2010 than they had in 1965, with working women burning about 132 fewer calories at home each day in 2010 than in 1965.

“Those are large reductions in energy expenditure,” Dr. Archer said, and would result, over the years, in significant weight gain without reductions in caloric intake.

What his study suggests, Dr. Archer continued, is that “we need to start finding ways to incorporate movement back into” the hours spent at home.

This does not mean, he said, that women — or men — should be doing more housework. For one thing, the effort involved is such activities today is less than it once was. Using modern, gliding vacuum cleaners is less taxing than struggling with the clunky, heavy machines once available, and thank goodness for that.

Nor is more time spent helping around the house a guarantee of more activity, over all. A telling 2012 study of television viewing habits found that when men increased the number of hours they spent on housework, they also greatly increased the hours they spent sitting in front of the TV, presumably because it was there and beckoning.

Instead, Dr. Archer said, we should start consciously tracking what we do when we are at home and try to reduce the amount of time spent sitting. “Walk to the mailbox,” he said. Chop vegetables in the kitchen. Play ball with your, or a neighbor’s, dog. Chivvy your spouse into helping you fold sheets. “The data clearly shows,” Dr. Archer said, that even at home, we need to be in motion.

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Deficit hawks' 'generational theft' argument is a sham

Here's a phrase you can expect to be hearing a lot in the national debate over fiscal policy, as we move past the "sequester," which is the crisis du jour, and toward the budget cliff/government shutdown deadline looming at the end of March:

"Generational theft."

The core idea the term expresses is that we're spending so much more on our seniors than our children that future generations are being cheated. An important corollary is that the government debt we incur today will come slamming down upon the shoulders of our children and grandchildren.

The generational theft trope has already been receiving a vigorous workout in the press. Earlier this month, the Washington Post gave great play to a study by the Urban Institute stating that the federal government spends $7 on the elderly for every dollar it spends on kids. As we shall see, this is true as far as it goes, but it doesn't go nearly far enough to render an accurate picture of government spending.

The National Journal, another influential publication in Washington, picked up the theme last week by observing that because the sequester exempts Social Security and Medicare from budget cuts, the automatic spending reductions it mandates will fall disproportionately on education and other such boons to the young. This will "deepen the budget's generational imbalance."

This is also a bedrock argument of the anti-deficit organizations, such as Fix the Debt, associated with hedge fund billionaire Peter G. Peterson. For decades he has pursued a wearisome and spectacularly self-interested campaign to cut Social Security and Medicare benefits for the working class so taxes won't go up too much on the wealthy.

One of those organizations, called "The Can Kicks Back," promotes a "Millennial-driven campaign to fix the national debt." But backstopping its twenty- and thirty-something leaders is an advisory board comprising such Peterson frontmen as Morgan Stanley board member Erskine Bowles and former Sen. Alan Simpson (R-Wyo.). These guys are "millennials" only if we're talking about the last millennium before this one.

So here's the truth about the "generational theft" theme: It's wrong on the numbers and wrong on the implications.

Let's start with that 7-to-1 spending ratio on seniors versus children. Among the flaws in the calculation is that the vast majority of government dollars spent on children comes from state and local governments, which pay most of the cost of education. On a per capita basis, state and local spending on kids swamps the federal government's spending 8 to 1.

Moreover, there are twice as many children 18 and under as seniors 65 and over (this 2008 figure also comes from the Urban Institute report). Put the numbers together and you discover that spending by governments at all levels in 2008 came to about $1 trillion on seniors and $936 billion on children. In other words, very close to 1 to 1.

The notion underlying the comparison of spending on seniors and children is that "if you save a dollar on Social Security it would be transferred automatically to children," observes Theodore R. Marmor, an emeritus professor of public policy at Yale and a long-term student of social welfare programs. He traces this notion to deficit hawks and dismisses it as "not naive, but cynical."

That's because most of the spending on seniors is in Social Security and Medicare, and therefore has been largely paid for by those very beneficiaries over the course of their working lives.

Payroll taxes have more than covered what today's average retiree will receive back from Social Security. They won't cover the average payout on Medicare, but that's an artifact of uncontrolled healthcare costs, not of the structure of Medicare itself. Changing the terms of that program, say by raising the eligibility age (currently 65) won't save money and may actually raise costs.

In other ways, treating Social Security and Medicare spending on the one hand and spending on kids on the other as though they're opposite sides of a zero-sum game is just an act of ideological legerdemain aimed at undermining those programs.

If America wants to spend more on children, it's plenty rich enough to do so without eating away at the income of their grandparents. The money can come from the defense budget, farm supports or dozens of other places, even higher income taxes.

Let's not forget, too, that the people who will really suffer from gutting Social Security won't be today's seniors, who will escape the worst of the cutbacks — they'll be today's young people, for whom Social Security would become much less supportive when they retire.

What about the debt load we're supposedly imposing on future generations? This is another transparently Petersonian feat of sleight of hand, based on the assertion that while it's we who incur the debt, it's our children who will have to pay if off.

All the hand-wringing over today's borrowing conveniently assumes that the debt buys nothing, which makes it easier for debt hawks to pretend that it's only an expense and not an investment.

But money borrowed for the stimulus has bought jobs and unemployment benefits, which have helped sustain families through the Great Recession. (At least a few of those families have children, wouldn't you guess?)

In a larger sense, money borrowed by every generation is typically invested in programs and infrastructure — highway, schools, research and conservation, for example — that will add to future generations' wealth.

It's the persistence of the "generational theft" claim, which bubbles up every few years, that exposes its ideological roots.

It's a fundamental piece of a decades-long campaign to distract Americans into thinking that the threat to their way of life comes from a war of old against young, rather than an intra-generational class war in which the vast majority of economic gains from improvements in worker's productivity has flowed to the wealthy, not to the workers.

The economist Dean Baker observes, for example, if the federal hourly minimum wage had merely kept up with productivity growth after 1969 rather than stagnating (and getting eaten away by inflation) it would be more than $16.54, and we wouldn't be arguing about whether the country can "afford" an increase to $9.

The "generational theft" argument is a sham. It's an attempt to get around the fact, so distasteful to the enemies of government social programs, that Social Security and Medicare are hugely popular. As Marmor observes, if you can't put across the case that these programs are undesirable, "you have to make them look uncontrollable, ungovernable, and therefore unaffordable."

The argument has been tried out on several generations in the past, and they've seen through it. Today's generation should see through it too.

Michael Hiltzik's column appears Sundays and Wednesdays. Reach him at mhiltzik@latimes.com, read past columns at latimes.com/hiltzik, check out facebook.com/hiltzik and follow @latimeshiltzik on Twitter.

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Mike Piazza softens stance on Dodgers' Vin Scully

PHOENIX—

— Calling Vin Scully "a class act" and saying he had "the utmost respect" for him, Mike Piazza on Monday defended what he wrote in his recently released autobiography about the Hall of Fame broadcaster.

In his book, "Long Shot," Piazza described Scully as instrumental in turning the fans of Los Angeles against him during the contract stalemate that led to his trade to the Florida Marlins in 1998. Piazza wrote that Scully "was crushing me" on the air, a charge Scully vehemently denied.

"I can't say that I have regrets," Piazza said. "I was just trying to explain the situation."

The former All-Star catcher was at the Dodgers' spring-training facility with Italy's World Baseball Classic team, for which he is a coach. Scully was also at the complex, to call the Dodgers' 7-6 victory over the Chicago Cubs.

"I'd love to see him," Piazza said.

The two didn't meet.

"I always liked him," Scully said. "I admired him. I think either he made a mistake or got some bad advice. I still think of him as a great player and I hope he gets into the Hall of Fame. I really do. Whatever disappointment I feel, I'll put aside."

Scully declined to comment further on Piazza or his book.

Piazza complimented Scully as he tried to defend what he wrote.

"Vin is a class act; he's an icon," Piazza said. "To this day, I have the utmost respect for him. But the problem is, you have to go back in time and understand that at that point in time in my career with the Dodgers was a very tumultuous time. I was more or less telling my version of the story, at least what I was experiencing. And I said at the end of the book, it's not coming from a place of malice or anger. I think anybody who remembers that time knows it was a very tumultuous time."

Piazza said his intent wasn't to blame Scully.

"I don't think anybody who read the passage from start to finish felt that way," Piazza said. "Anybody who reads it knows it wasn't me blaming. That was definitely not the only factor. There were other factors. The team made the mistake, I made the mistake, of speaking publicly."

Piazza acknowledged that he never heard Scully's broadcasts and that his impressions of them were based on what he heard from others.

"My perception was that he was given the Dodgers' versions of the negotiations, which, I feel, wasn't 100% accurate," Piazza said.

In his book, Piazza also took issue with how Scully asked him about his contract demands during a spring-training interview. Piazza said Monday that he was "taken aback" by the line of questioning because he previously hadn't talked publicly about the negotiations.

To reach the practice fields at Camelback Ranch on Monday, Piazza had to pass through a gantlet of Dodgers fans. Piazza said he wasn't nervous.

"I did a book signing a couple of weeks ago in Pasadena and the fans were really nice," he said.

Piazza denied that he hadn't returned to Dodger Stadium in recent years out of fear of being booed, as Tom Lasorda told The Times last month.

Piazza said he always associated the Dodgers with the O'Malley family, which sold the team to News Corp. in 1998.

"Since then, obviously, they've taken on a different identity," Piazza said.

Piazza was noncommittal about visiting the ballpark in the future. "We'll see," he said. "I'll never say never."

Wouldn't it be harder to return now that his portrayal of Scully has upset fans?

"I don't know," he said. "I can't answer that."

Piazza also spoke about falling short of being elected to the Hall of Fame in his first year of eligibility.

"I definitely couldn't lie and say I wasn't a little disappointed," he said.

He is hopeful he will one day be inducted. "I trust the process," he said.

Piazza wouldn't say whether he thought Barry Bonds and Roger Clemens deserved to be in the Hall of Fame. Both players, who have been linked to performance-enhancing drugs, also were denied election.

Piazza has denied using performance-enhancing drugs and has never faced detailed allegations that he did. Asked if he was upset that the indiscretions of others might have altered others' perceptions of him, he replied, "Unfortunately, that's the way life is sometimes. I can't control and worry about what people think."

dylan.hernandez@latimes.com

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Singer Morrissey says no to Kimmel, 'Duck Dynasty'

LOS ANGELES (AP) — The TV series "Duck Dynasty" is coming between Morrissey and Jimmy Kimmel.

The singer and animal rights activist says he canceled his appearance Tuesday on ABC's "Jimmy Kimmel Live" because "Duck Dynasty" cast members will be on the talk show.

Morrissey says he can't perform on a show with what he called people who "amount to animal serial killers."

A&E's "Duck Dynasty" reality show follows a Louisiana family with a business selling duck calls and decoys.

A&E did not immediately respond to requests for comment from it and the Robertson family.

A person familiar with the Kimmel show's plans confirmed that Morrissey was to appear. The person lacked authority to discuss the matter publicly and spoke on condition of anonymity.

The person says Morrissey's performance will be rescheduled.

ABC says the Churchill band will perform Tuesday on Kimmel's show but declined comment on the switch.

___

Reach AP Television Writer Lynn Elber at http://www.twitter.com/lynnelber .

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Horse Meat in European Beef Raises Questions on U.S. Exposure

The alarm in Europe over the discovery of horse meat in beef products escalated again Monday, when the Swedish furniture giant Ikea withdrew an estimated 1,670 pounds of meatballs from sale in 14 European countries.

Ikea acted after authorities in the Czech Republic detected horse meat in its meatballs. The company said it had made the decision even though its tests two weeks ago did not detect horse DNA.

Horse meat mixed with beef was first found last month in Ireland, then Britain, and has now expanded steadily across the Continent. The situation in Europe has created unease among American consumers over whether horse meat might also find its way into the food supply in the United States. Here are answers to commonly asked questions on the subject.

Has horse meat been found in any meatballs sold in Ikea stores in the United States?

Ikea says there is no horse meat in the meatballs it sells in the United States. The company issued a statement on Monday saying meatballs sold in its 38 stores in the United States were bought from an American supplier and contained beef and pork from animals raised in the United States and Canada.

“We do not tolerate any other ingredients than the ones stipulated in our recipes or specifications, secured through set standards, certifications and product analysis by accredited laboratories,” Ikea said in its statement.

Mona Liss, a spokeswoman for Ikea, said by e-mail that all of the businesses that supply meat to its meatball maker  issue letters guaranteeing that they will not misbrand or adulterate their products. “Additionally, as an abundance of caution, we are in the process of DNA-testing our meatballs,” Ms. Liss wrote. “Results should be concluded in 30 days.”

Does the United States import any beef from countries where horse meat has been found?

No. According to the Department of Agriculture, the United States imports no beef from any of the European countries involved in the scandal. Brian K. Mabry, a spokesman for the department’s Food Safety and Inspection Service, said: “Following a decision by Congress in November 2011 to lift the ban on horse slaughter, two establishments, one located in New Mexico and one in Missouri, have applied for a grant of inspection exclusively for equine slaughter. The Food Safety and Inspection Service (F.S.I.S.) is currently reviewing those applications.”

Has horse meat been found in ground meat products sold in the United States?

No. Meat products sold in the United States must pass Department of Agriculture inspections, whether produced domestically or imported. No government financing has been available for inspection of horse meat for human consumption in the United States since 2005, when the Humane Society of the United States got a rider forbidding financing for inspection of horse meat inserted in the annual appropriations bill for the Agriculture Department. Without inspection, such plants may not operate legally.

The rider was attached to every subsequent agriculture appropriations bill until 2011, when it was left out of an omnibus spending bill signed by President Obama on Nov. 18. The U.S.D.A.  has not committed any money for the inspection of horse meat.

“We’re real close to getting some processing plants up and running, but there are no inspectors because the U.S.D.A. is working on protocols,” said Dave Duquette, a horse trader in Oregon and president of United Horsemen, a small group that works to retrain and rehabilitate unwanted horses and advocates the slaughter of horses for meat. “We believe very strongly that the U.S.D.A. is going to bring inspectors online directly.”

Are horses slaughtered for meat for human consumption in the United States?

Not currently, although live horses from the United States are exported to slaughterhouses in Canada and Mexico. The lack of inspection effectively ended the slaughter of horse meat for human consumption in the United States; 2007 was the last year horses were slaughtered in the United States. At the time financing of inspections was banned, a Belgian company operated three horse meat processing plants — in Fort Worth and Kaufman, Tex., and DeKalb, Ill. — but exported the meat it produced in them.

Since 2011, efforts have been made to re-establish the processing of horse meat for human consumption in the United States. A small plant in Roswell, N.M., which used to process beef cattle into meat has been retooled to slaughter 20 to 25 horses a day. But legal challenges have prevented it from opening, Mr. Duquette said. Gov. Susana Martinez of New Mexico opposes opening the plant and has asked the U.S.D.A. to block it.

Last month, the two houses of the Oklahoma Legislature passed separate bills to override a law against the slaughter of horses for meat but kept the law’s ban on consumption of such meat by state residents. California, Illinois, New Jersey, Tennessee and Texas prohibit horse slaughter for human consumption.

Is there a market for horse meat in the United States?

Mr. Duquette said horse meat was popular among several growing demographic groups in the United States, including Tongans, Mongolians and various Hispanic populations. He said he knew of at least 10 restaurants that wanted to buy horse meat. “People are very polarized on this issue,” he said. Wayne Pacelle, chief executive of the Humane Society of the United States, disagreed, saying demand in the United States was limited. Italy is the largest consumer of horse meat, he said, followed by France and Belgium.

Is horse meat safe to eat?

That is a matter of much debate between proponents and opponents of horse meat consumption. Mr. Duquette said that horse meat, some derived from American animals processed abroad, was eaten widely around the world without health problems. “It’s high in protein, low in fat and has a whole lot of omega 3s,” he said.

The Humane Society says that because horse meat is not consumed in the United States, the animals’ flesh is likely to contain residues of many drugs that are unsafe for humans to eat. The organization’s list of drugs given to horses runs to 29 pages.

“We’ve been warning the Europeans about this for years,” Mr. Pacelle said. “You have all these food safety standards in Europe — they do not import chicken carcasses from the U.S. because they are bathed in chlorine, and won’t take pork because of the use of ractopamine in our industry — but you’ve thrown out the book when it comes to importing horse meat from North America.”

The society has filed petitions with the Department of Agriculture and Food and Drug Administration, arguing that they should test horse meat before allowing it to be marketed in the United States for humans to eat.

This article has been revised to reflect the following correction:

Correction: February 25, 2013

An earlier version of this article misstated how many pounds of meatballs Ikea was withdrawing from sale in 14 European countries. It is 1,670 pounds, not 1.67 billion pounds.

This article has been revised to reflect the following correction:

Correction: February 25, 2013

An earlier version of this article misstated the last year that horses were slaughtered in the United States. It is 2007, not 2006.

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Coordinated healthcare could save California $110 billion, group says

California could cut $110 billion in healthcare spending over the next decade, saving the average household $800 a year, by quickly moving away from conventional fee-for-service medicine and embracing more coordinated care, a new report says.

These findings released Tuesday come from the Berkeley Forum, a new group of healthcare executives, state officials and academics that studied California's healthcare market for the last year in hopes of finding ways to make care better and more affordable. The main recommendations are not entirely new, and these shifts are already underway in response to the federal healthcare law and pressure from employers to tame runaway medical costs.

But the group's report does quantify how much work remains to be done and the potential savings if major changes are made in how doctors and hospitals are paid. Health-policy experts at UC Berkeley convened this group, which included high-ranking executives from Kaiser Permanente, Anthem Blue Cross, Cedars-Sinai Medical Center and other industry players.

"This could be a game changer in the state," said Stephen Shortell, dean of the School of Public Health at UC Berkeley and a coauthor of the report. "These are the CEOs of big insurers, big health systems and large medical groups saying it's time for a change, and these are the people who can get things done."

The Berkeley Forum calls for a major shift toward "global budgets," in which physicians and hospitals provide care under preset amounts that are adjusted to reflect the health of their patients. These payments would also be tied to providers' performance on several quality measures.

This is similar to the "capitated" payments managed-care companies and HMOs have used for years in California. HMOs already cover 44% of California's population, which is about double the nationwide rate.

Despite that high penetration, the report's authors found that 78% of the state's healthcare costs, or about $245 billion annually, are still paid through fee-for-service arrangements, which can encourage medical providers to perform unnecessary tests and procedures. The report calls for reducing the share of fee-for-service payments to 50% by 2022.

The Berkeley Forum also says California should double the share of the state's population receiving integrated care from medical providers to 60% within the next decade. The most visible example of integrated care in California is Kaiser Permanente, the Oakland nonprofit that coordinates care across its hospitals and physician groups.

Other health insurers, hospitals and doctors are collaborating in similar ways through accountable-care organizations, medical homes and other initiatives that have strong backing from Medicare. Shortell acknowledged that there are "legitimate concerns" about this integration leading to higher prices as hospitals, clinics and physician groups rapidly consolidate.

The $110 billion in healthcare savings targeted by the group would amount to 2.5% of overall spending of $4.4 trillion over 10 years in California, according to the report. Those savings would mean an extra $800 annually for every California household.

Overall, the report found that 53% of the state's healthcare dollars are spent on just 5% of the population, illustrating the high cost of treating certain chronically ill patients.

Pam Kehaly, president of Anthem Blue Cross in California, said this industrywide collaboration "puts us on a path to improving the ailing California healthcare system."

chad.terhune@latimes.com

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Airlines get early jump on fare hikes in 2013

When a trade group for corporate travel managers recently predicted airfares would rise in 2013, the group probably didn't expect the hikes to be launched so quickly.

Domestic airfares are expected to jump 4.6% in 2013, while international rates will probably rise 8.3%, according to a survey of travel managers by the GBTA Foundation, an arm of the Global Business Travel Assn.

The group attributed the increase to rising demand from companies ready to take advantage of new business opportunities in a strengthening economy.

Only a week after the group issued its prediction, Delta Air Lines Inc., the nation's second-largest air carrier, initiated a fare hike of $4 to $10, specifically designed to hit business travelers who book within seven days of their flight.

By the end of last week, every major carrier had matched Delta's increase, according to FareCompare, a website that keeps track of such hikes. JetBlue Airways Corp. expanded the hike to include flights booked beyond the seven-day period.

The increase is the first of 2013 to take hold.

If the past is any indication, expect to see new hikes every two months or so. In 2012, the nation's major airlines adopted seven hikes out of 15 attempts.

For hotel guests, water pressure is key concern

Despite all the money and effort hotels put into selecting comfortable beds and soft pillows, a new study suggests that hotel guests are more likely to choose a hotel based on the water pressure in the shower.

A Boston marketing and public relations company has analyzed what people say about hotels by studying more than 18,000 online conversations for a six-month period on various social websites, blogs and forums.

The company, Brodeur Partners, used for the first time what it calls "conversational relevance" to measure how much people talk about a hotel and how much of it is positive.

What do they say?

When it came to positive overall comments, the Hilton, Marriott and Four Seasons hotel chains got the highest scores in the study.

Conversations about the rooms centered around the size, followed by discussions about connectivity and technology, the study found. When guests had conversations about what they like to see or feel in the room, most of the talk was about the shower, specifically the water pressure, surpassing talk about the bed or the sheets.

Jerry Johnson, head of planning for Brodeur Partners, said the advantage of analyzing online conversations is that "you are measuring behavior. You are hearing real honest conversations."

Hotels, he said, may respond to the study by improving whatever hotel feature guests are saying is lacking, perhaps even installing new shower heads.

Hotel chain responds to online reviews

About three years ago, the economy hotel chain Red Roof Inn tested out a new in-room feature in its Columbus, Ohio, hotel.

In addition to installing outlets near the desks in the rooms, the hotel added several outlets on the nightstand so travelers could keep their portable devices charging near the bed.

By monitoring comments on the travel review website TripAdvisor, the hotel chain found that the extra plugs were a big hit with travelers. The hotel decided to install them throughout the chain.

"It's a simple thing but it's extremely meaningful to the traveler," hotel chain President Andy Alexander said.

For the third year in a row, Red Roof Inn recently earned the highest customer satisfaction score among economy hotels in an analysis by Market Metrix, a San Francisco Bay Area hotel market research company.

Alexander attributes the chain's high score to its efforts to follow and respond to online reviews.

It's because of guest comments, he said, that Red Roof has tried other improvements, such as installing wood floors in the rooms and vessel sinks in the bathrooms.

What's next? Alexander said the hotel chain offers free wireless Internet to all guests but might consider offering higher speed Wi-Fi to members of its loyalty program.

"You can't stand still," he said.

hugo.martin@latimes.com

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Affleck's 'Argo' wins best-picture Oscar

LOS ANGELES (AP) — Ben Affleck's "Argo," a film about a fake movie, has earned a very real prize: best picture at the Academy Awards.

In share-the-wealth mode, Oscar voters spread Sunday's honors among a range of films, with "Argo" winning three trophies but "Life of Pi" leading with four.

Daniel Day-Lewis became the first person to win three best-actor Oscars, the latest coming for "Lincoln," while "Hunger Games" star Jennifer Lawrence triumphed in Hollywood's big games as best actress for "Silver Linings Playbook."

Ang Lee pulled off a major upset, winning best director for the shipwreck story "Life of Pi," taking the prize over Steven Spielberg, who had been favored for "Lincoln." It was the second directing Oscar for Lee, who also won for "Brokeback Mountain."

The supporting-acting prizes went to Anne Hathaway for "Les Miserables" and Christoph Waltz for "Django Unchained." It was Waltz's second supporting-actor Oscar in a Quentin Tarantino film after previously winning for "Inglourious Basterds." Tarantino also earned his second Oscar, for the "Django" screenplay, a category he previously won for "Pulp Fiction."

From the White House, first lady Michelle Obama joined Jack Nicholson to help present the final prize to "Argo."

"I never thought I'd be back here, and I am because of so many of you in this academy," said Affleck, who shared a screenplay Oscar with pal Matt Damon 15 years earlier for their breakout film "Good Will Hunting."

Among the wisdom he's acquired since then: "You can't hold grudges — it's hard but you can't hold grudges."

Kind words for an academy that overlooked him for a directing nomination, making "Argo" just the fourth film in 85 years to win best picture when its director was not in the running.

Lawrence took a fall on her way to the stage, tripping on the steps.

"You guys are just standing up because you feel bad that I fell," Lawrence joked as the crowd gave her a standing ovation.

At 22, Lawrence is the second-youngest woman to win best actress, behind Marlee Matlin, who was 21 when she won for "Children of a Lesser God."

With a monumental performance as Abraham Lincoln, Day-Lewis added to the honors he earned for "My Left Foot" and "There Will Be Blood." He's just the sixth actor to earn three or more Oscars, tied with Meryl Streep, Jack Nicholson, Ingrid Bergman and Walter Brennan with three each, and just behind Katharine Hepburn, who won four.

"It's funny, because three years ago, we agreed to do this swap. I had actually been committed to play Margaret Thatcher," a role that earned Streep her third Oscar last year for "The Iron Lady," Day-Lewis said. "And Meryl was Steven's first choice for Lincoln. I'd like to see that version."

On a not-so typically predictable Oscar night, given Lee's win and Obama's appearance, the emcee duties came off stylishly as crude-humor master Seth MacFarlane was on his best behavior — mostly — as host.

And "Argo" completed a quest that took it from populist underdog to Hollywood titleholder in an awards-season journey as quixotic as the film's story line.

In Greek mythology, Argo was the name of the ship that took hero Jason and his Argonauts on their unlikely quest for the Golden Fleece that would elevate him to his rightful kingship. The real-life thriller "Argo" borrows the name as title for a phony sci-fi movie concocted by the CIA as cover to spring six U.S. diplomats from Iran during the hostage crisis that erupted in 1979.

Like the voyage of Jason and the rescue of the Americans, the Oscar journey of "Argo" was filled with obstacles.

It was a slick, optimistic film in a best-picture race that often favors sober, gloomier stories. Best-picture doom seemed to chime for "Argo" after Affleck missed out on a directing nomination.

Leading the Oscars with 12 nominations, "Lincoln" initially looked like the default favorite. Then "Argo" started collecting every prize in sight, winning top honors at the Golden Globes and guilds representing Hollywood directors, actors, producers and writers. Everyone loved "Argo," which managed to dominate awards season while coming across as the deserving underdog because of the directing snub for Affleck, who played nice and spent the time proclaiming his respect for the academy and endearing himself with self-effacing humor and humility.

Affleck said he was disappointed at his omission from the directing category. But he had a nice consolation prize with the first lady announcing the film's win.

"I was sort of hallucinating when that was happening," Affleck said backstage alongside fellow "Argo" producers George Clooney and Grant Heslov. "Honestly, I was just asking these two guys outside, was that Michelle Obama? ... Anyway, it was very cool."

Hathaway is the third performer in a musical to win supporting actress during the genre's resurgence in the last decade.

"It came true," said Hathaway, who joins 2002 supporting-actress winner Catherine Zeta-Jones for "Chicago" and 2006 recipient Jennifer Hudson for "Dreamgirls." Hathaway had warm thanks for "Les Miz" co-star Hugh Jackman, with whom she once sang a duet at the Oscars when he was the show's host.

"Life of Pi" also won for Mychael Danna's multicultural musical score that blends Indian and Western instruments and influences, plus cinematography and visual effects.

"I really want to thank you for believing this story and sharing this incredible journey with me," Lee said to all who worked on the film, a surprise blockbuster about a youth trapped on a lifeboat with a Bengal tiger.

"Argo" also claimed the Oscar for adapted screenplay for Chris Terrio, who worked with Affleck to create a liberally embellished story based on an article about the rescue and part of CIA operative Tony Mendez's memoir.

Terrio dedicated the award to Mendez, saying "33 years ago, Tony, using nothing but his creativity and his intelligence, Tony got six people out of a bad situation."

The foreign-language prize went to Austrian filmmaker Michael Haneke's old-age love story "Amour," which tells the agonizing story of an elderly man (Jean-Louis Trintignant) tending his wife (Emmanuelle Riva) as she declines from age and illness.

The Scottish adventure "Brave," from Disney's Pixar Animation unit, was named best animated feature. Pixar films have won seven of the 12 Oscars since the category was added.

The upbeat musical portrait "Searching for Sugar Man" took the documentary feature prize. The film follows the quest of two South African fans to discover the fate of acclaimed but obscure singer-songwriter Sixto Rodriguez, who dropped out of sight after two albums in the 1970s and was rumored to have died a bitter death.

There was a rare tie in one category, with the Osama bin Laden thriller "Zero Dark Thirty" and the James Bond tale "Skyfall" each winning for sound editing.

William Shatner made a guest appearance as his "Star Trek" character Capt. James Kirk, appearing on a giant screen above the stage during MacFarlane's monologue, saying he came back in time to stop the host from ruining the Oscars.

"Your jokes are tasteless and inappropriate, and everyone ends up hating you," said Shatner, who revealed a headline supposedly from the next day's newspaper that read, "Seth MacFarlane worst Oscar host ever."

The performance-heavy Oscars also included an opening number featuring Charlize Theron and Channing Tatum, who did a classy dance while MacFarlane crooned "The Way You Look Tonight." Daniel Radcliffe and Joseph Gordon-Levitt then joined MacFarlane for an elegant musical rendition of "High Hopes."

Halle Berry introduced a tribute to the Bond franchise, in which she has co-starred, as the British super-spy celebrated his 50th anniversary on the big-screen last year with the latest adventure "Skyfall." Shirley Bassey sang her theme song to the 1960s Bond tale "Goldfinger." Later, pop star Adele performed her theme tune from "Skyfall," which won the best-song Oscar.

A salute to the resurgence of movie musicals in the last decade included Oscar winners Zeta-Jones singing "All That Jazz" from "Chicago" and Hudson doing "And I Am Telling You I'm Not Going" from "Dreamgirls." Hathaway and Jackman joined cast mates of best-picture contender "Les Miserables" to sing songs from their musical.

Academy officials said all performances were sung live.

Fans had pondered how far MacFarlane, the impudent creator of "Family Guy," might push the normally prim and proper Oscars. MacFarlane was generally polite and respectful, though he pressed his luck a bit on an Abraham Lincoln joke.

"I would argue that the actor who really got inside Lincoln's head was John Wilkes Booth," MacFarlane wisecracked, earning some groans from the crowd. "A hundred and 50 years later, and it's still too soon?"

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Online: http://www.oscars.org

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AP writers Christy Lemire, Lynn Elber, Hannah Dreier, Ryan Nakashima, Sandy Cohen, Beth Harris and Anthony McCartney contributed to this report.

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