17/10/2011 Daily Politics


17/10/2011

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Good afternoon. Welcome to the Daily Politics.

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As we all turn our central heating on, the Government's meeting the

:00:29.:00:33.

big six energy companies in an effort to bring prices down. But

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will it work? The Wall Street protest has spread to Europe and

:00:37.:00:40.

the City of London and they say they're not leaving until

:00:40.:00:43.

something's done about Coroporate greed.

:00:43.:00:47.

Mum or Dad should be able to share maternity leave - that's what the

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government's promised - but with the economy in dire straits are

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they about to change their mind? And has reality TV created a

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generation of idle, unemployable layabouts. We'll ask the man who

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brought Big Brother to Britain. All that in the next half hour. And

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with us for the whole programme today is the television

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entrepreneur, Peter Bazalgette. Welcome. First today, the protests

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that started on Wall Street a few weeks ago have spread across Europe

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and to the city of London. Anti- capitalist protestors have been

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camped outside St Paul's Cathedral all weekend and as City workers

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arrive this morning they're still there, and they say they'll stay

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until the Government takes action on corporate greed. We were hoping

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to be joined by one of the protesters, but they are too busy.

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These protesters don't have much chance of achieving anything do

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they? I suspect not. But it is an interesting phenomenon. Just before

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we saw the riot spread across Britain on Twitter and social Media,

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I see this, I have a media angle on this predictably. You would have,

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but in numbers terms they need to have thousands out there before you

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can achieve anything? You mentioned corporate greed, there are some

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serious issues about executive pay and senior executive pay shouldn't

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be more 20 times than the lowest paid person in the country, and all

:02:29.:02:33.

sorts of things under discussion. There are some things the

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Government could do about corporate pay if they wanted to. I don't know

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how specific the protesters are and it looks like we won't find out.

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Our corporate people greedy? We are all greedy. But can you harness it

:02:49.:02:54.

for the public good? Senior executive pay in large

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organisations has gone out of control, compared to the medium

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pace in organisations over the last 20 years. He would say it is the

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private sector, not just the public sector? The BBC have had to reform

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its pay structures, so it is all sectors. But it will Hutton has had

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some proposals, and his proposals are, you should bring a matrix in

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Between the ratio of senior pay to median pay and the lowest paid in

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organisations. Do you think protests a like these, even though

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there is a global element to it and they say they will stay until

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something is done. Unless you are affiliated politically or have any

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bearing on governance, nothing will change will it? The biggest

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significance of the protest outside St Paul's Cathedral is it will be

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disruptive to people going to communion. And they say they will

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put up with that? The vicar who said that on the radio this morning

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may come to regret that. The if it gets a bit colder, let's see how

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long they stay! And, Andrew Neil may not be here in

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person this morning. But he's with us spiritually. He's blogged on the

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eurozone crisis for us and you can read what he's got to say at the

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web address on screen at the moment. Now David Cameron's being told by

:04:13.:04:23.
:04:23.:04:28.

pollsters that he's got a problem with women. Will the Prime Minister

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turn on the Number Ten heating? It is �1,334 a year. That is following

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recent price rises from the suppliers. The regulator, Ofcom

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said last week the profit margin for energy firms had risen up to

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�125 per customer per year. From �15 in jeans. As energy prices have

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risen they have gone up the political agenda. Ed Miliband

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targeted the energy companies in his speech last month, saying it is

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a mid-market and argue it the squeeze Middle feel the brunt of

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the price increases. The Government had made similar noises with the

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Energy Secretary promising he will get tough with the firms, was the

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Prime Minister has said the Government needs to work harder and

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faster to bring down energy bills. Chris Huhne plans to highlight two

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ways consumers can cut bills. The Government will write to thousands

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of consumers who are entitled to insulation which will cut bills by

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�100 a year. Switching to direct debit payments, according to the

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Government, can also save �100 a year. I am joined by the energy

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spokesman for Labour and a representative from the energy

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companies attending the summit. Christine, in terms of what the

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energy companies are prepared to do, why don't they give the cheapest

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tariffs to customers who call them? A lot of them are getting in touch

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with customers to do that. The advice today will be make sure you

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on the right tariff, or switch to another supplier because we have a

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competitive market. Insulate, because that can save hundreds of

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pounds. And all of that could help people save money. It may not make

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sexy headlines, this insulating, energy switching, it is hassle.

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Poor people can make a difference. It is all very well to talk about

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the market, but these can make a difference to people now. It is the

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consumer that has to find the cheapest tariff, the consumer that

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will have to find out about insulating their home and switching

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companies. The energy companies won't bring their prices down?

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will be sending out messages, letters to customers urging them to

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shop around because you can save money. Saving money yes, but you

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cannot bring the prices down. You won't bring the prices down. That

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is what those companies are meant to do, maximise their profits?

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Ofgem said in their document last week, why are energy prices rising?

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It said quite clearly, wholesale gas prices which have gone up 40%

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this year of the driver between energy bills rising. There is

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nothing anyone can do, there is no escaping it, even the small

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companies, it is not just the big ones. So you profits have gone up,

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too? Ofgem says it has gone up by a �100, is that justifiable? Those

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figures don't paint and realistic figure? Are they wrong? We would

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dispute those figures. How much have they gone up? Profit margins

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have gone up because wholesale prices have gone up. They are very

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volatile. It was �15 before the summer and it did look like it had

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gone up by �100. If you look at it over five years which off gendered,

:08:02.:08:12.
:08:12.:08:13.

they are warm 0.6%. -- Ofgem did. Profit margins are there to stay,

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what are you proposing with his breaking up of the dominance of

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this market, there is nothing you can do? The first thing to say,

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profits have gone up by �110. profit margin yes. Ofgem says they

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have gone up to 125. The challenge for the consumer is trying to

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navigate all the different tariffs. We are calling for a unit standing

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charge and a set additional cost so people can understand what is going

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on. According to the report last week, 80% of consumers are not

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offered the best deal by their energy company. Why aren't they

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offer that? Engage consumers have benefited a lot. Ask that dance --

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answer that, why aren't they offered the best? They are going to

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get letters offering them. So that is going to change? The Government

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has said they are going to call on energy companies so consumers can

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go to it energy companies asking for the best prices, but not

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stating what is the best tariff for those individual customers? Some

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people once based -- fixed tariff, some people want a green tariff. It

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is not as simple as that. Most people will do now, fuel poverty is

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becoming a problem. Companies will be getting touch with customers

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offering them a tariff. Energy companies are there to make profits,

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they are be holding to their shareholders, you cannot stop that.

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There needs to be an admission from politicians and the Government, you

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cannot force companies to bring their prices down? The public to

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expect and deserve... Can you do it? There are some things the

:10:06.:10:10.

Government can do. Scottish and Southern Energy said they will sell

:10:10.:10:15.

their electricity on an open market. All the other electricity companies

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that generate electricity, they only sell it to themselves. Just

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six companies provide energy to 99% of the market, it is closed and

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transfer not very transparent. of that is going to happen in the

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near future and people are facing fuel poverty now. Do you accept

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during 13 years of Labour Government there was a failure for

:10:36.:10:40.

companies to invest in infrastructure? You could have done

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it early on but you didn't. People are contesting whether we should

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put that Investment... There is now, prices have gone up and we are

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paying for that. But in 1997 you did not make those companies invest.

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There were loads of things that needed to be done first and it took

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time. But it was put in place and the challenge now is, we have to

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ensure security of supply and we are not seeing that. On security of

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supply you did not think about energy supply. It took Labour many

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years before any decisions were made about nuclear power stations?

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We put that opportunity in place but energy companies to invest in

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renewables and look at other ways of supplying. The Labour Government

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put that in place. How much money is going to be invested by the

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energy companies in new infrastructure? The figure Ofgem

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says is necessary is 200 billion over the next 10 years. It is a

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huge sum and the companies have to make some money so they can attract

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the investment that will allow them to do that. How realistic is it to

:11:55.:11:59.

break up the dominance, have other people supplying the energy? We are

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in favour of a competitive market, we have one of the most competitive

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markets anywhere in the world for the cheapest price per unit of gas

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and there have been a lot of benefits. Is the No 1 agenda for

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the public? You cannot have low prices and high investment. Green

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energy, tremendously expensive. The greener we want to be, the more

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pricey it is. Shale Gas, which is being developed could absolutely

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turn around the prices in the energy sector if we develop it

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properly, but it will require investment. In vestment is the key.

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David Cameron is being told by pollsters he has a problem with

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women. He has been in trouble for saying things like this.

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Calm down there, calm down. Listen to the doctor. What David Cameron

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saw as a bit of banter was interpreted as underlying sexism, a

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misunderstanding which led to this apology.

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I obviously said some things in the House of Commons that came out

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wrong. It caused the wrong impression and I deeply regret that.

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I was asked about it in an interview with the Sunday Times and

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I said what I think. It sounds terrible, I apologise for that. It

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is not what I'm like, it is not what I am. I must do better.

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The apology is apparently part of the Prime Minister's attempt to

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show he is a decent person but he is looking at concrete policies.

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The Government is committed to making maternity and paternity

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leave more flexible so it can be shared between partners. But a

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review of red tape has recommended the plans are dropped. Joining me

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is a Conservative MP and the Labour MP has stayed with me. Why should

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the Government dropped its extension of its flagship policies?

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I have not seen the report and they did not realise a report has been

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that -- published if you are referring to the one by Adam

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Beecroft. No single legislated for a measure will have a major impact

:14:15.:14:19.

on employment or business growth. We have to be careful about adding

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several extra layers which may make it more difficult for employers to

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employ people. You are basically saying they shouldn't be any more

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legislation that will add to what employers have to deal with?

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would seek to avoid adding any more at this time. It is a flagship

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policy and part of the Government's commitment to extend flexible

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working and the sharing of parental leave? If you look at it on the

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whole, as trying to help support families. You look at a range of

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fiscal measures that have been introduced, but the biggest way is

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to help people get back into work. There is some very good protected

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rights in place at the moment. Think very carefully before we move

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to make more burdens and difficulties for businesses. Some

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of the shared parental Leeds, I can see why it is a good idea. But I

:15:14.:15:18.

also question how you regulate that. But it has to be thought through

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and I hope that is what will be looked at. Do you think the

:15:25.:15:35.
:15:35.:15:35.

Government will drop any of this? The Government should be looking at

:15:35.:15:40.

how they can create jobs and growth and looking at parental leave, in

:15:40.:15:44.

the grand scheme of things, it's quite irrelevant. They should go

:15:44.:15:48.

ahead with those policies even if it's an extra burden? Yes, simply,

:15:48.:15:52.

they should. The chances of it being dropped Arslan from the

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evidence and what the other problem the Government, particularly David

:15:56.:16:01.

Cameron, have that with women voters? If we're going to address

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the question of perception with voters, we are in danger of missing

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the point. Is it perception? Even David Cameron himself wants to have

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policies that demonstrate the Conservatives are thinking about

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women. Yes, if you look at the policies put forward, easing the

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burden on families through the measures introduced, next year the

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tax allowance up to 8,000, child tax credits being increased, that

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is all good stuff but ultimately, what we are depending on for growth

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is jobs. My argument is we should not tighten the straitjacket on

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employers, and actually help women and all people back into work by

:16:41.:16:48.

not increasing the regulation. truth is there is a 10 point capo

:16:48.:16:53.

with women's and men's support for the Conservative Party. Will that

:16:53.:16:57.

change by extending rights for parental leave? Reeves in the

:16:57.:17:01.

highest unemployment for women since the 1980s. The Government has

:17:01.:17:05.

taken a nursery care, support, and women are very upset with what the

:17:06.:17:09.

Government is doing. It's another nail in the coffin if they pursue

:17:09.:17:15.

it. You need to change that perception. We are based in reality,

:17:15.:17:18.

we have increased child tax allowances. We have extended

:17:18.:17:23.

nursery rights, as well for the what about child benefit for higher

:17:23.:17:29.

tax payers? Should that be kept? would be keen that that we look at

:17:29.:17:32.

the whole range of fiscal measures which do the job so my argument

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would say, it would benefit more people by the extending the tax

:17:38.:17:43.

allowance rather than focus on one area. I'll be going to add another

:17:43.:17:47.

layer of regulatory burden when, over and above, some very good

:17:47.:17:50.

employment protection rights that exists at the moment, my argument

:17:50.:17:54.

is we should not be doing that and we should be cautious about doing

:17:54.:18:00.

it at this particularly difficult time. Would you allow the sacking

:18:00.:18:06.

of that pregnant women in this climate? No, of course not. Rogue

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employers should be dealt with with the legislation in place and that's

:18:10.:18:14.

what we do at the moment. All employers should be treated fairly

:18:14.:18:19.

and equally but the protection is existing. I haven't a company for

:18:19.:18:25.

25 years. One I left, we employed 100 people. Do you accept the

:18:25.:18:30.

Tories have a problem with women voters? You have to believe the

:18:30.:18:35.

polls. The important thing is, if there are issues out there, people

:18:35.:18:38.

will never just focus on one single individual issue but look at what

:18:38.:18:43.

you're doing, for them and their families for the high important

:18:43.:18:48.

would this be, as an employer yourself, extending parental leave?

:18:48.:18:51.

Are they important? The most important issue today is

:18:51.:18:58.

unemployment, I think. If the most important issue is that, everything

:18:58.:19:03.

must enable companies to employ more people, and that means that,

:19:03.:19:07.

if you put any additional burdens on businesses, however good they

:19:07.:19:13.

may sound, please take away another burden. Everybody talks about

:19:13.:19:18.

removing red tape but they put the red tape on companies. What are you

:19:18.:19:27.

going to take away? What would you take away? There's lots of things

:19:27.:19:30.

Labour has come up with which we do government should do to stimulate

:19:30.:19:35.

employment. Do you think, by putting an extra regulation, will

:19:35.:19:41.

have a detrimental effect in terms of employment? The Business I speak

:19:41.:19:48.

to see value having parents working for them, actually. I would say

:19:48.:19:51.

exactly that's what we've got at the moment, very good protection

:19:51.:19:59.

rights. The main point is, it accounts for over half the jobs in

:19:59.:20:03.

the private sector, let's encourage them and not impose more burdens

:20:03.:20:08.

for the Yes, let's encourage small and medium enterprises to take on

:20:08.:20:14.

more employees by having a National Insurance holiday. Politically, of

:20:14.:20:19.

course, there is a split with various people in the Cabinet on

:20:19.:20:23.

either side of the argument. Do you think it is going to become one of

:20:23.:20:31.

those defining roles? I suspect not. Most splits, what I would say,

:20:31.:20:35.

there have been some strong words said about it at the moment. What I

:20:35.:20:40.

think the Government should remain focused on is their commitment to

:20:40.:20:46.

help create the conditions for small businesses to thrive, which

:20:46.:20:51.

is about reducing the burden of regulation, not just in this area

:20:51.:20:56.

but other areas as well. Thank you. Is there a generation of young

:20:56.:20:59.

people out there that lacks the energy or get-up-and-go to make a

:20:59.:21:01.

fist of things in Britain's increasingly tough job market? The

:21:01.:21:04.

unemployment rate amongst 16-24 year olds is nudging the one

:21:04.:21:06.

million mark with evidence that employers prefer older or immigrant

:21:06.:21:11.

workers to British youth. Some are suggesting that reality shows like

:21:11.:21:14.

Big Brother introduced to Britain by my guest of the day Peter

:21:14.:21:17.

Bazalgette are to blame for the fact some young people just don't

:21:17.:21:27.
:21:27.:21:39.

feel like working. Adam's been Day 22,000, the House of parliament,

:21:39.:21:44.

and a politician who knows a thing or two about Big Brother has taken

:21:44.:21:48.

to the airways to criticise a certain reality TV show. The idea

:21:48.:21:53.

the way you succeed is by being famous, just making an appearance

:21:53.:21:59.

on Big Brother, if you get that, you can't succeed. Actually, we

:21:59.:22:01.

need to show this different ways of succeeding for young people and

:22:01.:22:05.

what I worry about deeply is giving people a sense that there something

:22:05.:22:11.

for something. That has got the vote of this columnist. You don't

:22:11.:22:15.

have to have learned anything to appear on a reality show. You don't

:22:15.:22:18.

have to be good at anything. Once you have appeared on it, you become

:22:19.:22:25.

famous, as ever did, make money, and are successful, without trying.

:22:25.:22:31.

That the values they are imparting. According to his employment expert,

:22:31.:22:37.

those attitudes are being felt in the world of work. Evidence shows a

:22:37.:22:42.

third of employers are not happy with young people's skills and work

:22:42.:22:47.

attitude, so that shows there might be an issue, and it's a little bit

:22:47.:22:51.

alarming considering the economy and labour market and youth

:22:51.:22:57.

unemployment more generally. But, this academic, who has looked of

:22:57.:23:00.

thousands of survey responses from young people across Europe, thinks

:23:00.:23:04.

the picture is more complicated. the moment, we are high levels of

:23:04.:23:08.

unemployment, it could lead to people to think that taking a quick

:23:08.:23:11.

route to celebrities is a good option for them, but the vast

:23:12.:23:15.

majority of young people are quite sensible, and they just won't take

:23:15.:23:19.

that route. They know that they have to work hard, and that's the

:23:19.:23:23.

only way they will achieve things. The fact is, cutting the record

:23:23.:23:27.

levels of youth unemployment is one of the big issues in politics at

:23:27.:23:31.

the moment and the contestant who succeeds in that task is likely to

:23:31.:23:36.

be crowned at the whim of the reality show that his Westminster.

:23:36.:23:42.

Prime minister, this is Big Brother, get out of the Jacuzzi!

:23:42.:23:48.

Ed Miliband said reality TV shows like Big Brother have contributed

:23:48.:23:53.

to a general malaise, a generation of young people who have a feeling

:23:53.:23:57.

of entitlement for nothing. It's a good cheaper slogan on a wet

:23:57.:24:00.

afternoon when you can't think of what else to put in a conference

:24:00.:24:04.

speech in the autumn. No, it's always been a teenage desire to be

:24:04.:24:09.

famous, going back to the coffee shops are Denmark Street, in the

:24:09.:24:13.

1950s when Cliff Richard wanted to be a start, or go back to the

:24:13.:24:20.

celebrity collectors of the 1920s, it's a desire. -- cultures.

:24:20.:24:23.

Television gives people 50 minutes of fame but as nothing to do with

:24:23.:24:29.

what that piece was about. It's about young people's skills of they

:24:29.:24:34.

depend on the education system and that is the proper issue that that

:24:34.:24:37.

report was raising. Television entertainment is not the beginning,

:24:37.:24:43.

the end or the middle. Maybe not, but has it contributed? There is a

:24:43.:24:46.

strong feeling that, although you argue people are always wanted to

:24:46.:24:50.

be famous, now there are many, many young people who think it is

:24:50.:24:55.

achievable. It's not just for the chosen few but it's an achievable

:24:55.:25:02.

aim in life to be famous, for doing very little. No, it's a perfectly

:25:02.:25:07.

legitimate dream as a teenager, to think of yourself in that way.

:25:07.:25:12.

have up TV shows, the X Factor, Britain's got talent, it's all

:25:12.:25:17.

about on stage performing to be paid a lot of money, not to have

:25:17.:25:21.

role models of doctors, nurses, teachers, but that has diminished

:25:21.:25:27.

and the celebrity has increased. There are more celebrity shows on

:25:27.:25:30.

television and there is more television and more channels, so,

:25:30.:25:34.

in that sense, it's true, but I don't think the sentiments of that

:25:34.:25:38.

age group has changed at all. Everybody has this fantasy about

:25:38.:25:43.

being famous when they are a teenager. What we have to do in the

:25:43.:25:46.

education system is have more jobs will be good to go into an that's

:25:46.:25:52.

basic, and hasn't got a lot to do with reality television. In terms

:25:52.:25:56.

of young people employment, what do you see out there? Young British

:25:56.:26:02.

workers are not employable? That's putting it too strongly, but if you

:26:02.:26:05.

take the large employers in Britain, they don't always get the levels of

:26:05.:26:10.

skills, particularly in a literacy and IT they need, and sometimes

:26:10.:26:13.

they have had remedial courses when they employ them and that's not

:26:13.:26:18.

good enough. We need to put that right in school. How have you found

:26:19.:26:22.

attitudes about people turning up on time, looking smug, playing the

:26:22.:26:29.

game? I think it would be a gross generalisation to say there was a

:26:29.:26:33.

problem with attitude. I think it one was going to allege that, you

:26:33.:26:40.

would have to come up with evidence, not anecdotal observations, a quick

:26:40.:26:44.

line-out from a speech of a politician. Seeing it in the round,

:26:44.:26:49.

though, you have celebrity reality television on the one hand, the new

:26:49.:26:58.

media on the other, the obsession with mobile phones, and the rest of

:26:58.:27:00.

very different way than employers would like them to be in the world

:27:00.:27:05.

of work. In the sense that they are not focused on getting the jobs,

:27:05.:27:12.

they are more focused on a social celebrity level? No, young people's

:27:12.:27:15.

dexterity with a new media is a positive we should build on going

:27:15.:27:20.

forward, and those that are really media-literate, they may not be

:27:20.:27:25.

wise, and put far too much of their private lives on Facebook, but that

:27:25.:27:29.

a separate issue, but they are much more employable and that's a good

:27:29.:27:38.

thing. You argued forcibly there. tried! While three have been on air,

:27:38.:27:45.

James Landale joins me, what is the news? Over the weekend to be a good

:27:45.:27:49.

impression the Government was going to shake up its policies towards

:27:49.:27:53.

lobbying as a result of the Dr Fox effect when William Hague yesterday

:27:53.:27:57.

said ministers would take stock of its policy well the Prime

:27:57.:28:00.

Minister's spokesman said this morning these are two separate

:28:00.:28:04.

issues pulled up Liam Fox on one hand and the Government plans to

:28:04.:28:07.

reform of lobbying. There's an existing process under way and the

:28:07.:28:12.

Government is consulting on a statutory register of lobbyists for

:28:12.:28:18.

the that process will be ongoing, nothing will change. Yes, if there

:28:18.:28:21.

are any elements of the Dr Fox affair that are relevant, it will

:28:21.:28:25.

be taking into account, but the Government will not speed up the

:28:25.:28:29.

policy in any way. They are two separate issues so tomorrow when

:28:29.:28:35.

Gus O'Donnell reports on the whole affair, we shouldn't expect much

:28:35.:28:39.

policy recommendations, just the facts. James, thank you for joining

:28:39.:28:42.

us today. That's all for today. Thanks to our

:28:42.:28:46.

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