Today in the press

US MORTGAGE DUO 'SHOULD GO ON GOVERNMENT BOOKS' - The Financial Times says the US has begun to face the financial consequences of the bail-out of Fannie Mae and Freddie Mac after Congress's budget watchdog said the housing giants' operations should sit on the government's books.

The non-partisan Congressional Budget Office said the government takeover of Fannie and Freddie meant the companies should no longer be regarded as outside the public sector.

The FT says the Bush administration appeared to be caught by surprise by the decision. It adds that the White House could take a different view on Fannie and Freddie and exclude them from its budgets.

The two mortgage companies have between them $5,400 billion in liabilities, equal to the entire publicly traded debt of the US, alongside mortgage-related assets of about equal value. These will now all be accounted for by the CBO, although public accounting rules mean that its tally of US government debt may not necessarily increase by the full amount.

***

ESB UNIONS SEEK 18-MONTH PAY DEAL -The Irish Times says unions representing the ESB's 7,800 workers formally lodged a €60m pay claim with the State electricity company's management yesterday.

The paper says the ESB group of unions are seeking an 11.25% pay increase over 18 months, based on cost of living increases, concessions made by the workforce and the company's profitability.

Both the company and the unions themselves confirmed yesterday that the claim has been formally lodged with ESB management.

The paper says the ESB would not comment, beyond saying that it was hopeful that the revived talks on a national pay deal involving the Government and social partners would come to a successful conclusion. As it supports the national process, the ESB would pay any increase agreed in those talks.

***

IRISH LIFE AIMS TO RAISE €90m FROM SALES - The Irish Independent reports that Irish Life is offering three Dublin office properties in a major investment disposal expected to fetch a total of around €90m.

The paper says the assurance giant is selling Hambleden House on Pembroke Street, Wilson House on Fenian Street and office accommodation above Merrion Shopping Centre in Ballsbridge through selling agent CB Richard Ellis.

'Irish Life recognises that this is a very difficult time for sellers of commercial property,' a spokesperson for the group said. 'But it has been decided to explore the state of the market at this time and we expect good interest for such quality properties.'

The Indo says Irish Life's move will be considered brave in the current nervous property market climate.

***

NORWAY HAS ETHICS PROBLEM WITH MINING FIRM - The Guardian says Rio Tinto, which it describes as one of Britain's most blue chip corporate names, has been thrown out of a sovereign wealth fund's portfolio for allegedly subjecting it - potentially - to 'grossly unethical conduct' through its involvement in the world's biggest gold mine.

Norway's Ministry of Finance said today that it was selling off the £500m stake held in Rio Tinto by its Government Pension Fund - Global, commonly known as the 'oil fund'.

The paper quotes Kristin Halvorsen, the Norwegian finance minister, as saying that the problems with Rio Tinto, the world's second-largest iron ore miner, concerned a joint venture with Freeport McMoRan, a company excluded by the fund in 2006, at a mining operation in Indonesia.

'The Council on Ethics has concluded that Rio Tinto is directly involved, through its participation in the Grasberg mine in Indonesia, in the severe environmental damage caused by that mining operation,' she said.