21/06/2012 Daily Politics


21/06/2012

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Afternoon, folks. Welcome to the Daily Politics. It could be back to

:00:42.:00:45.

the 80s for exams, as the Government considers a return to O

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levels. We'll ask whether the changes could restore the

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reputation of secondary school qualifications. Paying your taxes?

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You're having a laugh. Comedian Jimmy Carr apologies for avoiding

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tax after David Cameron slaps him down. But will the joke end up

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being on the Prime Minister? doctors take industrial action

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today over government changes to their pension scheme, the BMA and

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the Health Minister join us to debate the issues. And as Aung San

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Suu Kyi visits Westminster on the latest leg of her trip to the UK,

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we'll ask Foreign Office Minister Jeremy Browne why the Government is

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also inviting the military-backed Burmese President to Britain.

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what of England's chances at the Euros? We've been asking

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parliament's best footballing brains if they can go all the way.

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We must not get carried away. We have to take each game as it comes.

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I think he will be getting carried away when it comes to the match

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with Italy, even carried out! All that in the next hour. With us for

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the duration former Director General of the CBI, Labour Trade

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Minister and keen football fan, it says here, Digby Jones. He supports

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Aston Villa, which I'm told is a football team! Thank you for having

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me. Prince William supports him. And also David Cameron. Welcome.

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Let's start with David Cameron's decision to criticise the TV comic

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Jimmy Carr for his tax arrangements. It was revealed in the Times

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newspaper. The comedian has been using an off-shore scheme to pay as

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little as 1% income tax. This morning Mr Carr said he'd made a

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terrible error of judgement, despite the scheme being entirely

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legal. Here's what Mr Cameron had to say. Some of these schemes where

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people are parking huge amounts of money offshore and taking loans are

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back to minimise their tax rates, it is not morally acceptable and I

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put it like this. Think of all those people who work hard, pay

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their taxes, and out of their post- tax incomes, save up to go and see

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Jimmy Carr, he is taking that money and of putting it somewhere where

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he does not have to pay taxes. That is not right. The Prime Minister

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talked about the morality of paying taxes in relation to Jimmy Carr's

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tax affairs. Should be commenting on individual tax payer? He is in

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Mexico taking a trade delegation with him, and they wish he had

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stuck to his knitting and created jobs and wealth for Britain by

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being there, rather commenting on such a domestic issue, but it's a

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very, very difficult path for a Democratic elected politician to

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take. On the one side, it's great politics. Especially at the moment,

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it is excellent to be able to say, we've got these rich people not

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breaking the law but they are morally repugnant. That's a phrase

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which could come back to haunt them. Spot on. To get popularity, the

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problem is, one man's tax avoidance is another man's planning. And

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everybody does something which is perfectly legal but is a way of

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minimising it. Jimmy Carr says he met with his financial adviser who

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asked them, do you want to pay less tax and it's totally legal? Jimmy

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Carr said yes. What is morally repugnant about that? If it's so

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bad, why doesn't the Government close the loophole? Labour was in

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power for 13 years, and the loophole has been there all this

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time. If these things are so wrong, why do they exist? I actually sat

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next to Gordon Brown at a dinner and he was clamping down on self-

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employed IT professionals. Years ago, now. I remember saying, why

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are you going after these people? What they are doing is illegal. And

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not every professional footballer in the Premiership? Frankly, the

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tax avoidance, which goes on with highly remunerated of footballers...

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He said, if you think I'm going to lose the boats are the people who

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support these footballers, you have got to be joking. -- the votes.

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People have to make a moral judgement about what they do and

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then governments are there to reflect the electorate's view on

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whether it should be illegal or not and if it's not right, pass a law

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to stop it. Over the years, politicians of all persuasions have

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made the tax code more and more complicated. And they have put

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taxes on there and loopholes there. Look at the film schemes introduced

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by Labour as a way to get money in, but the tax guide under Gordon

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Brown went from this thick to this thick. My accountant said to me, I

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can't carry around the tax code any more because it's too big. With

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smart accountants, finding dodgy ways around it... We have a

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politician railing against the market. You put it tax up to a rate

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where it pays some body to try to avoid it but it was lower, people

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wouldn't do it. If the market doesn't like what Jimmy Carr is

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doing, they won't go and watch his show. How do you differentiate

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between it aggressive tax avoidance and straightforward tax avoidance?

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I do great... I gave money to charity and a try to put other 10

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and I took huge exception to being told, when I put a bit in and the

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Government puts a bit in and the charity gets it, it is morally

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repugnant tax avoidance. I thought, if you're going go down this path,

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be careful because you will put a lot of people down a road where

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they have a label they don't deserve or forgive. The Prime

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Minister has made to open season on people like Jimmy Carr. We should

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look at Tory donors, Tory MPs, Cabinet colleagues, celebrity

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supporters. We will see where this ends. It will be very interesting.

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Now, today's Daily Mail has something of a scoop. We are giving

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the Daily Mail credit. Usually it just steals other people's scoops

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and does not give them credit. They've got hold of leaked

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documents from the Department of Education on Government plans to

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overhaul the exam system. Michael Gove was summoned to the Commons

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this morning to confirm the plans which he said are going out to

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consultation. So what has he got in mind and what could it mean for

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school children in England? Here's Jo with the details. Yes, it seems

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Michael Gove and his team have been burning the midnight oil. They've

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come up with a new plan for school exams in England. Well, not so new

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as it turns out. They're looking at getting rid of GCSEs and bringing

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back O Level style exams. Remember them? It's understood the Education

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Secretary believes GCSEs have led to a collapse in standards. And the

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new tests would, it's claimed, meet or exceed the highest standards in

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the world for that age group. The subjects would include English,

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Maths and the individual sciences Physics, Chemistry and Biology.

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There could also be new exams in History, Geography and modern

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languages. Less able pupils might also sit a simpler CSE-style exam.

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What's more, it's been reported that Mr Gove wants just one exam

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board to set the new papers instead of schools being able to pick and

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chose, something which ministers have claimed contributes to a race

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to the bottom. However head teachers will have more choice on

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what they teach, as the plans include proposals to scrap the

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national curriculum in secondary schools. Something that already

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happens in academies. Andrew. Thanks. We're joined to discuss the

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plans by Conservative MP Liz Truss. And the shadow schools minister

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Kevin Brennan. Welcome. Why don't we start with a short opening

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statements. What is the case for this reform? Britain is

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underperforming, our international competitors, we are 28th in the

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world, 16th for science. It's not good enough. We have been overtaken

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by Germany. The Asian countries are racing ahead, Canada is doing very

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well and unfortunately, although we have seen the great inflation in

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schools, the real results are not better as shown by the

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international comparisons. The exam boards are competing with each

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other to make the exams easier, to get schools to take them, and we

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have seen the expose by the Telegraph this year showing it's

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going on so we need radical change. Will Labour oppose these reforms

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and why? If as reported in today's Daily Mail and we are returning

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back to O-levels and CSC's, yes, we would, because we fear it will

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close of opportunities for young people and Ken Baker this morning

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described by CSCs as a worthless piece of paper, as they were. I

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taught them. It was a change brought in by Mrs Thatcher for a

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reason, to make sure opportunities were not closed off to children at

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the age of 14. At the moment, 40% of students are not getting five

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good grades at GCSEs. They're getting grade which are not well

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regarded by employers. What we need to do, we're not talking about

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returning to that system but what we are saying, in top-performing

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countries, 80% of students are getting good quality qualifications

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at 16. Those who are not able to reach those standards, 20%, should

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be able to show what they can do in terms of mastering basic

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mathematics and English. They can't do that in the current GCSE

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structure. We are moving to a two- tier system, aren't we? There will

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be two sorts of qualifications and one of them inevitably would be

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seen as one for the poor. We have a two-tier system at the moment, 40%

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of students not getting good grades at GCSE is and who are bringing

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qualifications that employers don't take seriously and are having to

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retrain people to do. I think it's better to say... They are being

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sifted out by schools at the age of 14. Are they are told that they

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have to go for an inferior qualification. I'm afraid that is

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what will happen. I will come back. We have got plenty of time. Your

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party had 18 years. Yours had 12 years. 13 years. Between you, that

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is three scholastic generations. Three generations of children going

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through school. After 11 years of full-time, free compulsory

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education in this country, half the children, 48% who take a GCSE this

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summer, will not get a grade above a C grade. 42% of the employers,

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public and private sector, are people who come out of school and

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have to give them remedial training, teach them to read. You are

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squabbling now. What the average kid and empire once, just teach

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them to read, write and count. -- employee wants. This constant

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social streaming concept. You have got to teach them to read.

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completely agree that we didn't do enough when we were in government.

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Were you wrong to introduce the GCSEs? Margaret Thatcher did it.

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The A-level system was not right because not enough people were

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getting good quality occasions. were you wrong? Answer yes or no.

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It isn't right. It must have been on otherwise you would not be

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making these changes. It's IBS on know. The Tory high command is not

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going to hang you from Westminster Bridge! Just answer truthfully, yes

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or no. They were better than what went before but not as good as what

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we could have now. No one is holding you accountable. I did a

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GCSE in media studies myself, Andrew, so I'm well aware. Confess

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and be honest. Was it wrong to do it? They were an improvement but

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not enough of an improvement. there's an improvement, why are you

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going back to the way it was? want to say why it will be

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different. What we are envisaging his students will study in the same

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classes but when they get to 16 there will be a question about, are

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they up to doing the rigorous GCSEs or do they sit... So they sit at

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the same classroom but do it to different qualifications? Excuse me.

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You've had a good go, even they didn't answer my question. How can

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this country hope to compete with Germany or China or Singapore? One

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of the questions in the GCSE science paper is, do you use a

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microscope or a telescope to look at the moon? If you ask somebody

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that, you would think you were Jimmy Carr having a laugh. There is

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a good piece in today's Financial Times a dressing that very question.

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I haven't read it. It points out that the GCSE is available to

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children at every level and that may sound like an extremely simple

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question. It is, but it's not testing the ability of the pupils

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who are being stretched. What is the answer? Do you think Chinese

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children are being asked that question? They do get a paper like

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that. Do you think a Chinese kid is being asked that in a serious

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science exam in the Shanghai? idea. The answer is no. It is an

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all ability paper. If you're going to put in some children in a small

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number, clearly questions of that kind will be on it. It shows we

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have a two-tier system at the moment. Students are being asked

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low-grade questions at the moment. It's better to get basic English

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and maths in place. Back in the distant past, when the education

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system was ruined through the introduction of comprehensive

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schools, instead of saying it let's make the bits that don't work well,

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secondary modern, and CSC's, instead of saying that letters make

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that better, create more vocational skills and training, and Taylor

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something to people whose academic abilities is not so good, instead

:15:45.:15:55.
:15:55.:16:04.

of that, both of you in different Will it actually raise standards?

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If the problem is you were going to have a mediocre set of results, it

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will not raise standards, will it? We're asking schools to have higher

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aspirations. Students in all these other countries - 80% or 90% are

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doing high quality academic qualifications until they are 16.

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Why did you leave out then? That is top of the table. I do not think we

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can have a system that only educates a minority of people.

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Academic education is becoming more and more important. Mathematics

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commands highest earnings premium in the workplace. He cannot write a

:16:53.:17:03.
:17:03.:17:08.

whole bunch of students off. Half of students cannot read? Actually

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those standards have improved. I know you say about the return back

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to the system of having selection at 11, which is presumably what you

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favour in terms of grammar school as and secondary moderns. The vast

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majority of such -- children, literacy was terrible. It is wrong

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to say that half the children cannot read. It is wrong to say

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they cannot read at 16 - half the children. Why is it Beth half of

:17:38.:17:48.
:17:48.:17:50.

the Labour MPs actually supported our policy? -- that. We are out of

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time. A great debate. I am sure we will continue it. If you had

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surgery or an appointment planned with your consultant, chances are

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you're not be seeing a doctor because of industrial action over

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changes to pensions. We will bring to representatives of both sides of

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the dispute to argue their cases. The public finances we inherited

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were in a terrible situation. There was a necessity to rebalance public

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service workers' contributions to their pensions with taxpayers'

:18:28.:18:35.

subsidies. Instead of, for example, �4 out of �5 being contributed,

:18:35.:18:44.

there has been a shift. I wanted it still to be a really good pension

:18:44.:18:50.

scheme. When you look at it, for a junior doctor starting out, over

:18:50.:18:54.

their working lifetime, if the works through G68, some he is

:18:54.:19:04.

starting out at 2015 and 24, they will be able to have a pension -- a

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large pension. All the doctors will get the pension they expected when

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it spent -- expected. Starting with you, do you feel there is little

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sympathy for you and the strike? Some of the headlines in the papers

:19:27.:19:34.

saying, the strike will confirm a growing perception that the

:19:34.:19:40.

profession is fuelled by greed. This is the first time in nearly 40

:19:40.:19:45.

years that doctors have taken any sort of action. The public have to

:19:45.:19:49.

ask what has driven them to this and what meant that 70% of them

:19:49.:19:52.

said they wanted to take action because of the fact the Government

:19:52.:20:00.

had come back on the 2008 pension scheme. Let's have a look at

:20:00.:20:05.

doctors and GPs. What you say to reports that at supporters also

:20:05.:20:12.

waning? There were poles by GPs saying that 281 GP centres, 22%

:20:12.:20:16.

confirmed there would not be taking part. Doctors have taken this

:20:16.:20:20.

decision very reluctant they. I can fully understand and sympathise

:20:20.:20:25.

with doctors who do not want to take this dispute out on patients.

:20:25.:20:29.

That is why we have tried to minimise the impact on patients.

:20:29.:20:39.
:20:39.:20:41.

All doctors are treating emergency cases. I'm not out to maximise the

:20:41.:20:46.

adverse reaction on the public. We are talking but highlighting the

:20:46.:20:52.

problem and resolving the issue. What do you hope to achieve?

:20:52.:20:56.

Ministers could not have been clearer. They said the action

:20:56.:21:00.

stands no chance to talk in changing government policy. One way

:21:00.:21:05.

or another, one has to try to resolve these. There are be far

:21:05.:21:11.

better to resolve but sooner rather to talk, sit down and tried to find

:21:11.:21:17.

a way out of the problem. Why could do not have stop this happening?

:21:17.:21:24.

believe the deal being put forward is fair. You'll notice the nurses

:21:24.:21:29.

and Unison members are not striking today. Department of Health

:21:29.:21:35.

officials have had 23 meetings with the BMA to discuss this. It is

:21:35.:21:37.

unfortunate that chair of the pension committee did not turn up

:21:37.:21:43.

to the meetings. Hamish has had five meetings with the Secretary of

:21:43.:21:49.

State. Why have you not worked this out? Do not so we have not engage

:21:49.:21:53.

properly in negotiation. The head of our pensions department has been

:21:53.:21:57.

at every single meeting - the equivalent of every other union

:21:57.:22:02.

personnel was there as well. The idea we have not been committed to

:22:02.:22:08.

the discussions is untrue. Are you saying you will not negotiate?

:22:08.:22:14.

have come up with a fair deal. Ind has been accepted by the nurses'

:22:14.:22:22.

and Unison. -- it has been. If you joined the pension scheme in 2015,

:22:22.:22:27.

if you retire at 65, you will get a pension of �53,000. If you retire

:22:27.:22:35.

later, at 68, you will receive �68,000 a year pension, which is a

:22:35.:22:39.

pot of �1.5 million from the private sector. Why is that not

:22:39.:22:45.

acceptable? We went into more the issues about pensions in 2008. We

:22:45.:22:50.

had a deal where doctors would work longer, pay more and, where any

:22:50.:22:54.

future impact on the pension system would be taken by the employees and

:22:54.:22:59.

not by the Government. People live longer and the cost of pensions go

:22:59.:23:05.

up. That would be paid for by the employees and not the Government.

:23:05.:23:14.

It is wrong to compare it with another pot. At the moment, that is

:23:14.:23:19.

supplied �2 billion a year surplus to the Treasury. You have run a

:23:19.:23:28.

Tarmac deal? No, we have not. -- gone back on that deal? Very few

:23:28.:23:33.

have joined that scheme. That scheme renegotiated, Winnie was

:23:33.:23:38.

less good than the current scheme that doctors had. -- we knew. We

:23:38.:23:42.

agreed to it in the interest of the public. It is not surprising that

:23:42.:23:50.

few doctors joined bad. What you are now offering was far less good.

:23:50.:23:55.

The 2008 scheme which was put together did not take into account

:23:55.:24:01.

two key factors - one the economic situation and the cost to the

:24:01.:24:05.

country. You are saying you a change it because of the economic

:24:05.:24:11.

situation. Also because of changes in the lifespan of people. If you

:24:11.:24:21.
:24:21.:24:24.

retire at 60, it could be 34 years. Amanda working on the line a Jaguar

:24:24.:24:31.

has jumped through every hoop to keep in work. -- a man. Rarely have

:24:31.:24:37.

I ever sat in a television studio unwashed a turkey voting for

:24:37.:24:43.

Christmas. -- and watched. On behalf of that kite in Birmingham,

:24:43.:24:48.

making motor cars, you have just wash -- lost the street-cred your

:24:48.:24:55.

profession deserves. I am sorry you think that is the case. Doctors are

:24:55.:25:03.

now in the 30th of a pay freeze. -- third year. Doctors have agreed to

:25:03.:25:08.

pay more. Lord Hutton said, this is not the race. Public sector

:25:08.:25:13.

pensions are not gold-plated. It has always been part of working in

:25:13.:25:17.

the public sector that you had a degree of job security and

:25:17.:25:22.

reasonable pensions. Now doctors are having to pay almost twice as

:25:22.:25:27.

much as equivalents in the Civil Service. That cannot be fair.

:25:27.:25:32.

should doctors' pay much more for their pensions and well-paid civil

:25:32.:25:38.

servants and MPs? First of all, it is wrong to just isolate one aspect

:25:38.:25:45.

of the whole pension package. should they pay much more? 14.5%

:25:45.:25:55.
:25:55.:25:55.

Against 9%. Why is it so different? You are wrong! 14.5% after tax

:25:56.:26:00.

relief, that is 8.7%. If you are talking about MPs, they are

:26:00.:26:09.

currently paying 13.5% for their pensions. It rose from 11.25 %.

:26:09.:26:13.

That is bought eight 20th accrual. Matters in half the time the

:26:13.:26:23.

doctors would take. -- that is in half the time. On the broad., let's

:26:23.:26:30.

not get bogged down into much detail in terms of figures. -- on

:26:30.:26:39.

the broad point. Is it fair? Senior civil servants are earning, on

:26:39.:26:45.

average, �78,000 a year. Consultants are earning �116,500.

:26:45.:26:50.

The average pension for all civil servants, including senior, middle

:26:50.:26:57.

and junior, is about �31,000 the year. The average in the NHS scheme

:26:57.:27:06.

is �7,000. The doctors won �53,000, rising to 68 as an pounds. -- the

:27:06.:27:16.
:27:16.:27:20.

doctors want. -- the doctors want �53,000 rising to �68,000. Is it

:27:20.:27:25.

clever to cut funding for the NHS, introduce competition and carry out

:27:25.:27:31.

the biggest reorganisation of the NHS, impose a pay freeze and

:27:31.:27:35.

changed doctors pensions at the same time? BhS is a protected

:27:36.:27:43.

budget. They are having a modest real terms increase. -- the NHS is

:27:43.:27:48.

a protected budget. This was not going to get the doctors on side.

:27:48.:27:54.

It was difficult to get doctors on side at times at all. The NHS needs

:27:54.:28:00.

to continue to evolve. We cannot stand still. You are looking greedy

:28:00.:28:04.

and self-interested. You have not gone strike that money being sent

:28:04.:28:13.

for the NHS. You ask about your pensions. You know as well as I can,

:28:13.:28:17.

industrial law is you cannot go on strike for something like that -

:28:17.:28:24.

only for a contractual thing. could make a bigger deal upper tip.

:28:24.:28:31.

The beer maybe -- made a big deal about the changes. We were the

:28:31.:28:36.

first body to talk about this. We both have scars on our back to

:28:36.:28:42.

prove it. When teachers started to strike in the early 80s, they lost

:28:42.:28:47.

the link of trust between society and them. You're just about to go

:28:47.:28:53.

down the same path and that is a tragedy. Thank you both very much.

:28:53.:28:58.

Contrary to what Digby was saying, if any techies are watching this

:28:58.:29:05.

programme, I would like to reassure you, Christmas is a long way off! -

:29:05.:29:12.

- techies. It has been veiled Jimmy Carr paid in cash for his �8.5

:29:12.:29:21.

million house. -- it has been revealed that Jimmy Carr. I think

:29:21.:29:25.

we are in the wrong business the stuff we need to be comedians. Got

:29:25.:29:35.

Until very recently it would have been unthinkable. But this

:29:35.:29:38.

afternoon Aung Sang Sui Kyi, leader of Burma's Opposition and a woman

:29:38.:29:41.

who endured house arrest at the hands of her country's military

:29:41.:29:44.

junta for 15 years, will address both Houses of Parliament. She's

:29:44.:29:49.

only the second woman after the Queen to do so. In a moment, we'll

:29:49.:29:52.

talk to the Foreign Office minister Jeremy Browne about the trip and

:29:52.:29:54.

Britain's invitation to the President of Burma to visit the UK

:29:54.:29:59.

later in the year. But first let's go over to Adam Fleming who's

:29:59.:30:02.

outside the Houses of Parliament with two women whose lives have

:30:02.:30:05.

been touched by Aung San Suu Kyi and her campaign.

:30:05.:30:10.

Good afternoon. A really historic day in the Commons today. They just

:30:10.:30:14.

started cutting the grass on College Green but to discuss

:30:14.:30:18.

today's events we are joined by boot to women who have been

:30:18.:30:22.

affected by Aung San Suu Kyi. A woman who wrote a film about the

:30:22.:30:27.

Burmese opposition leader. And a woman who is from the Burma

:30:27.:30:30.

campaigner UK. Rebecca, this would be a great climax for your thumb,

:30:30.:30:37.

wouldn't it? Yes, when I voted for years ago, Aung San Suu Kyi had

:30:37.:30:41.

been under house arrest for over 20 years and the film was a

:30:41.:30:45.

campaigning film to campaign for her release so little did we know,

:30:45.:30:49.

history would move so quickly. does this fit into the story of her

:30:49.:30:55.

life? Today is a wonderful day. She's on a five-country tour of

:30:55.:30:59.

Europe and I think that in addressing both houses of

:30:59.:31:02.

parliament today, which is an honour accorded to usually only

:31:02.:31:08.

heads of state, I think the West are sending a clear signal to the

:31:08.:31:15.

military of Aung San Suu Kyi, but she has the right for leader, and

:31:15.:31:21.

she has who we wanted a business with. She won a landslide election

:31:21.:31:25.

victory in the 1991 and it will mean she will return to Burma at

:31:25.:31:32.

the end of this week with increased political clout. What is it like

:31:32.:31:37.

knowing you are going to be watching her? It is wonderful. Very

:31:37.:31:45.

inspiring and encouraging. To see Aung San Suu Kyi travelling outside

:31:45.:31:54.

Burma. She has the confidence she will be allowed back in Burma. Many

:31:54.:31:59.

others have been campaigning for her release. It is just very

:31:59.:32:03.

helpful and encouraging to see this, but I think the most important

:32:03.:32:08.

thing for us to see is what she has to say. The political messages she

:32:08.:32:13.

has been delivering throughout her trip in Europe is very good and

:32:13.:32:19.

very inspiring. There are still hundreds of political prisoners in

:32:19.:32:24.

Burma. The international committees, governments, have to do something

:32:24.:32:29.

about it for their release and, at the same time, for humanitarian aid

:32:29.:32:34.

to be increased in at Burma, especially for Refugees, to have a

:32:35.:32:39.

genuine peace in ethnic areas. The International Committee should pay

:32:39.:32:45.

attention. Are you worried that if people see Aung San Suu Kyi touring

:32:45.:32:49.

around Europe, they will think everything is fine now? Some people

:32:49.:32:54.

who don't know much about Burma, of course they might think that the

:32:54.:32:58.

problems are solved now but Aung San Suu Kyi makes it very clear

:32:58.:33:05.

that we still have a long way to go in Burma and the international

:33:05.:33:09.

community needs to support the people in Burma. Although the

:33:09.:33:18.

Government in Burma is opening up some kind of political phrases by

:33:18.:33:23.

stabilising problems in Burma... It's a problem for the

:33:23.:33:26.

international committee to support our community and the people in a

:33:26.:33:30.

Burma to have genuine peace. what about the British Government's

:33:30.:33:35.

invite to the President? It's far too soon. The British Government

:33:35.:33:39.

has sent bench marks against the Government in Burma and none of

:33:39.:33:44.

those benchmarks have been met. Thank you both for joining us. We

:33:44.:33:49.

have run out of time. The speech starts at 3pm and then there is a

:33:49.:33:56.

reception later on. Thank you, Adam. And welcome to

:33:56.:34:02.

viewers in Scotland. We're discussing Aung San Suu Kyi's visit

:34:02.:34:07.

to Britain. Her speech to the joint session of Parliament. And we're

:34:07.:34:11.

joined by Jeremy Browne, Foreign Office Minister. Are we in danger

:34:11.:34:16.

of thinking that the situation has been resolved in Burma now? Yes,

:34:16.:34:21.

because it has not been resolved but has shifted significantly. The

:34:21.:34:26.

balance to have to strike in the play Missy is to recognise change

:34:26.:34:30.

when you see it and reward it but not anticipate future change before

:34:30.:34:35.

it has happened. We are trying to get that balance right, encourage

:34:35.:34:40.

progress in Burma. This is a sick of a good part, this week, but we

:34:40.:34:48.

are not being blinded by it -- a significant part. That woman thinks

:34:48.:34:53.

it's too soon to invite the President of this country. He was a

:34:53.:34:58.

former general. He leads a military-backed party. Still a

:34:58.:35:04.

military regime. She thinks it's too soon. That could then it is

:35:04.:35:07.

sometimes made that in trying to reward progress and show good faith

:35:07.:35:14.

-- criticism -- in terms of my decisions going on in Burma with

:35:14.:35:20.

the people, we over reach ourselves. I don't accept that. I think we are

:35:20.:35:23.

getting the balance right. Aung San Suu Kyi is in favour of telling

:35:24.:35:27.

that level of engagement and the Prime Minister and Foreign

:35:27.:35:31.

Secretary have been in Burma this year, and as well as meeting her

:35:31.:35:34.

they had engaged with the Burmese authorities and the President as

:35:34.:35:39.

well. We have to manage that relationship as a whole, and him

:35:39.:35:47.

coming, I hope, will enable us to bring about reform in Burma. Have

:35:47.:35:53.

we normalised relations with Burma? We won't sell them arms, but have

:35:53.:35:59.

we returned to normality? Ride through, we had an embassy there. -

:35:59.:36:05.

- a right through. I look forward to being at posted there! What poor

:36:05.:36:10.

man had descended there! It's not normally the longest queue for that

:36:10.:36:15.

job. It's a politically interesting job when you arrive at. The British

:36:15.:36:18.

ambassador is back here for the Aung San Suu Kyi visit and is

:36:18.:36:22.

playing a central role in that. We have suspended EU sanctions and

:36:22.:36:27.

consciously not scrap them. They are in suspension and that was a

:36:27.:36:31.

conscious decision led by David Cameron and the British Government

:36:31.:36:36.

that we would have that hanging over them but if there was a

:36:36.:36:41.

demonstration of progress, the rewards follow, so there is a bit

:36:41.:36:47.

of coaxing. Over 400 political prisoners, still. Lots have been

:36:47.:36:56.

released. Amnesty and others had a campaign where you had people's

:36:56.:37:02.

names on your hands and campaigned for them. Those had been released

:37:02.:37:06.

so there has been great progress. I had a meeting with Aung San Suu Kyi

:37:06.:37:08.

and of Foreign Secretary this morning and she said she thought

:37:08.:37:15.

there was about 271 remaining political prisoners but you can get

:37:15.:37:17.

the ones who are most obviously political prisoners, they have been

:37:18.:37:22.

released. It's what you classified as a political prisoner because

:37:22.:37:27.

some of them, it may be described like that, may also be imprisoned

:37:27.:37:33.

for violent acts, for example. She said the 271 was not an absolute

:37:33.:37:40.

figure and there could be an error. A we are the biggest donor.

:37:40.:37:45.

gives us some substantial leverage. Although William Hague was the

:37:45.:37:50.

first British Foreign Secretary since the 1950s to visit Burma, and

:37:50.:37:55.

Richards had previously been. There's all kinds of difficulties

:37:55.:38:03.

in Burma. A lot of internal unrest. We are trying to help in that

:38:03.:38:10.

regard and I hope that that gives us a bigger... When I was in Delhi,

:38:10.:38:20.
:38:20.:38:20.

as a minister, I said when Burma finally opens up to the world, the

:38:20.:38:25.

real end during way of keeping reform in their face will be

:38:25.:38:30.

through trade. It will be through clean water, health care, education

:38:30.:38:34.

and all that comes from wealth created by people trading and

:38:34.:38:40.

investing. Am very supportive of what you're doing. I think the way

:38:40.:38:45.

you have put it is spot-on. When the cameras have gone home and Aung

:38:45.:38:49.

San Suu Kyi has gone home, and it's not flavour of the month any more,

:38:50.:38:54.

the Burmese have got to understand democracy pays and that by a job,

:38:54.:39:01.

healthcare, education. I strongly agree. What do we want to trade

:39:01.:39:07.

with them? There's a lot of opportunities. Let me help you.

:39:07.:39:10.

They have a lot of natural resources. The Chinese and the

:39:10.:39:17.

Indians are in their though, aren't they? I mean the support services,

:39:17.:39:23.

gas and oil fields. Really good people who can go in there. Also

:39:23.:39:27.

they need capacity, how to deliver and we are quite good at that,

:39:27.:39:35.

education and training. I want to move on. Will there be Lib Dem

:39:36.:39:42.

unrest at these education reforms? I haven't seen the details of the

:39:42.:39:46.

reforms but read some newspaper reports. I think what will be the

:39:46.:39:51.

guiding principle for the rank and file Lib Dems is to have a system

:39:51.:39:56.

where everybody is able to realise their potential. You don't have a

:39:56.:40:01.

glass ceilings put in at different layers. It's a return to a two-tier

:40:01.:40:06.

system. I think there has been some genuine concern, not only on the

:40:06.:40:10.

Conservative benches, that we need to make sure that different exam

:40:10.:40:15.

boards are not trying to compete with each other to make the system

:40:15.:40:21.

easier. Will your party be happy with a two-tier system? English and

:40:21.:40:26.

maths, we need to keep the rigour to be internationally competitive.

:40:26.:40:32.

Will you be happy with a two-tier system, a return to O-levels and a

:40:32.:40:40.

modern version of A C S E? instincts are obviously people will

:40:40.:40:49.

get the top grades and people will get, but we want to try and keep

:40:49.:40:55.

that under one umbrella bar than having separate strains. The OK. We

:40:55.:41:01.

have done Education and Burma. Versatile today. Now the big issue.

:41:01.:41:10.

England are playing Kiev on Sunday. I was unfairly treated earlier this

:41:10.:41:16.

week on the subject for the did you see that? I apologise. I have no

:41:16.:41:20.

idea what you're talking about. said England had never reached a

:41:20.:41:24.

final of the tournament held outside England. And this was

:41:24.:41:27.

reported as me predicting that England would not reach the final.

:41:27.:41:35.

I didn't do that at all. Can I now get on with a questions? No

:41:35.:41:39.

minister is going to go to the match in Kiev, in the Ukraine,

:41:39.:41:47.

correct? The quarter-final. Yes. The semi-final, if we get through,

:41:47.:41:53.

it's in Poland. So you can go there. What happens of England makes the

:41:53.:42:03.
:42:03.:42:04.

final in the Ukraine? I think we are reserving our position. Why?

:42:04.:42:07.

I'm definitely not going because I will be on the other side of the

:42:07.:42:16.

world. If it were you? The position, it has been, and answering the

:42:16.:42:23.

question, I'm not going. Would you go? The ministers in general?

:42:23.:42:27.

they go to the final if we make it to the final? It remains under

:42:27.:42:33.

review but I wouldn't have an assumption that they will do.

:42:33.:42:35.

if it's right to boycott the Ukraine for the reasons you have

:42:35.:42:40.

given, surely it doesn't matter whether it is the tiddlywinks

:42:40.:42:45.

championship or the finals of the year 2012? If you want to make an

:42:45.:42:50.

effective boycott, the final is the place to do it. Not going to a

:42:50.:42:57.

quarter-final,, a final, it consistently es or no. The position

:42:57.:43:03.

is that there is widespread feeling, shared by the British Government

:43:03.:43:06.

that they have been a serious errors of concern in the Ukraine

:43:06.:43:12.

and you want to demonstrate. The fact it's been discussed so widely

:43:12.:43:16.

in a way, as shown that we have got across that message very powerfully

:43:16.:43:20.

but there are people who say that it is appropriate, especially if

:43:20.:43:25.

you go to the later end of the competition, to have that type of

:43:25.:43:29.

representation. We will keep it under review but it wouldn't hold

:43:29.:43:32.

any great prospect that we would attend because of those concerns

:43:32.:43:37.

about human rights. You could make it that if you go to the final, you

:43:37.:43:42.

then have to go and be ambassador in North Korea as a penalty?

:43:42.:43:47.

that why you're not going? Are they hosting any tournaments any time

:43:47.:43:53.

soon? They did well in a 1966 World Cup. Their record since then...

:43:53.:43:57.

but then they could afford to eat. They are now richer than South

:43:57.:44:01.

Korea, though. An amazing transformation in that type of the

:44:01.:44:07.

world. Thank you very much. That's assuming England get to the final.

:44:07.:44:11.

What do you think? I would ask you! It's already been a summer to

:44:11.:44:13.

remember with Diamond Jubilees and the Olympics, not to mention

:44:13.:44:16.

England's imminent triumph in the Euros. The eyes of the world will

:44:16.:44:19.

be on Britain. So what better opportunity for putting our goods

:44:19.:44:22.

and services in the shop window? But are government and business

:44:22.:44:24.

really capitalising on it? And are they doing enough to promote

:44:24.:44:27.

British trade with the emerging economic superpowers of Brazil,

:44:27.:44:37.
:44:37.:44:44.

Russia, India and China? We sent We might not be able to guarantee

:44:44.:44:49.

the weather but this summer will be Britain a past of his chance to

:44:49.:44:57.

shine on the world's stage. We have had the Diamond Jubilee. --

:44:57.:45:02.

Britain's prime -- chance. Will any of this actually make a difference

:45:02.:45:06.

to the image of Britain in the world? Will it help to put our

:45:06.:45:13.

exports in the shop window? In the end, have you got the products?

:45:13.:45:19.

Have you got the people? Is the Government backing you? Can you get

:45:19.:45:25.

export and financial support? Too many answers remain, not quite, not

:45:25.:45:30.

sure. That is not the view from the coalition front bench. British

:45:30.:45:38.

exports to Brazil going at 37%. British exports to China going at

:45:38.:45:43.

61%. British exports to India going up 73%. That is because the British

:45:43.:45:46.

government is out there, championing British business, which

:45:46.:45:53.

the other side neglected to do. Brazil Russia India and China are

:45:53.:46:00.

the brick Nations. -- brake nations. These statistics do not tell the

:46:00.:46:07.

holster talk -- story. In the UK club bottom of the leak of EU

:46:07.:46:14.

nations when it comes to sending goods to emerging markets. -- the

:46:14.:46:21.

UK is bottom of the leak. Russia is a very good example of exporting

:46:21.:46:25.

its image. We're in the post- industrial age where Britain does

:46:25.:46:31.

not produce as much as it did in the 19th century. Russians aspired

:46:31.:46:37.

to everything, what is British and what is English. What open stores

:46:37.:46:45.

in Brazil? In Brazil, we are known for football. It has a Briton who

:46:45.:46:50.

took the first football in the 18 90s. We are known in different

:46:50.:46:55.

places for different things. We could be promoting our message even

:46:55.:47:00.

more. That is what is going to sell goods and services. Why aren't we

:47:00.:47:07.

selling more? They do not cut as any slack. We think the Indians are

:47:07.:47:12.

our friends. Belgian exports more to India than we do. Unless we have

:47:12.:47:18.

the products, the personnel, we have to get up and go guys, but

:47:18.:47:24.

above all we have a government that believes in helping companies

:47:24.:47:30.

export. Ministers say they believe that there is no bang behind their

:47:30.:47:34.

words. When I was in Brazil receiving British business figures,

:47:34.:47:39.

there were two things they always said. They had no idea Brazil was

:47:39.:47:44.

like it was. The second was that they will be back. Sadly, quite a

:47:44.:47:52.

few were impressed but never came back. Heritage is one of Britain's

:47:52.:47:59.

u s ps. That will determine whether our trade is left in the past. --

:47:59.:48:05.

unique selling points. Let's start with the image of Britain abroad.

:48:05.:48:10.

How are reviewed on the trading saying? I was an international

:48:10.:48:20.
:48:20.:48:21.

corporate finance a liar. It has -- lawyer. I do not think it has

:48:21.:48:26.

changed. We are seen as slow but we are trusted. More than the

:48:26.:48:30.

Americans and the French. More than the Germans and Japanese. We're a

:48:30.:48:36.

trusted trading partner. People believe Bass and like to associate

:48:36.:48:42.

with our values. -- belief asked. When you buy something for me by

:48:42.:48:47.

because you feel good about it all. As emerging markets get richer,

:48:47.:48:51.

middle classes have disposable income. What do they want to show

:48:51.:49:01.
:49:01.:49:04.

off? And services. They want to buy a Mini. They want a Jaguar Land

:49:04.:49:08.

Rover. They want a Vodafone made in Newbury. They want to send their

:49:08.:49:13.

kids to a British university. That is buying into a feeling of

:49:13.:49:20.

Britishness. In the last 30 years, nothing has changed. Middle classes

:49:20.:49:27.

are growing and expanding in the -- in those countries. We make half of

:49:27.:49:36.

every Airbus that is ever flown. A lot take off from Toulouse. It is

:49:36.:49:43.

booked as the French export. Reebok kit as an export to France. We make

:49:43.:49:52.

half of it. -- week book it. They book a whole thing. France sell a

:49:52.:49:57.

lot more to India and China. That happens a lot. Secondly, an awful

:49:58.:50:03.

lot of what we do it in emerging markets, we have come in from other

:50:03.:50:07.

ways. Higher education is a fabulous export in this country. It

:50:07.:50:14.

is them coming to us. Services is another one. On a monorail in Dubai,

:50:14.:50:24.
:50:24.:50:28.

we ran it. It is not a sensible sale. -- Serco run it. We have a

:50:29.:50:38.
:50:39.:50:42.

Secretary of State who does not use British goods. They do not get it.

:50:42.:50:49.

I came up against this all the time as Trade Minister. It is open

:50:49.:50:56.

market. I do not want protectionism. What I want is in the DNA of people.

:50:56.:51:02.

It is not protectionist. I would love Vince Cable to get in every

:51:02.:51:09.

day the Toyota, Nissan or Honda made in Britain. The British

:51:09.:51:15.

business minister gets into a Japanese car made in Japan? Because

:51:15.:51:20.

they cannot understand why it matters. When I was the minister,

:51:20.:51:28.

the first thing that happened Dom we made Nissan in Sunderland.

:51:28.:51:35.

the first thing that happened at... I am saying if you put him in here

:51:35.:51:39.

and asked if he was patriotic, he would say, of course I am. When I

:51:39.:51:49.
:51:49.:51:52.

got there, they said, it is your car. They do not get it. As you can

:51:52.:51:55.

imagine, we're getting very excited at the Daily Politics about

:51:55.:52:00.

everything going on in Europe. Last minute transfer of the Greek right

:52:00.:52:08.

wing, Germany giving nothing away. -- and plucky England planning

:52:08.:52:11.

their own furrow and just about staying in the game. I'm not

:52:12.:52:18.

talking about the euro crisis, I am talking about Euro 2012. I am told

:52:18.:52:23.

it is a football tournament. Who will win? Can Greece beat back the

:52:23.:52:33.
:52:33.:52:39.

Germans? Who better to ask than football-mad MPs? Occasionally talk

:52:39.:52:44.

does slip towards Euro 2012. We are interested in both. There is a

:52:44.:52:48.

danger that both will end in tears. Expectations are raised. Things

:52:48.:52:55.

seem to be on the way up and dashed at the last moment. I think

:52:55.:53:02.

everybody wants Greece to win. I am told Greece will only play if they

:53:02.:53:06.

played against the German reserves. I would like Greece to win but I

:53:06.:53:11.

expect Germany will win. If they win and we when we will play them.

:53:11.:53:19.

Maybe they should decide the bail out conditions. I would like to

:53:19.:53:22.

think they would drop out of the euro's first but I have a sneaking

:53:22.:53:27.

suspicion that, if Italy do well, it will be a winning goal by Mario

:53:27.:53:33.

Balatelli. Days are numbered to just a couple. Let's get behind the

:53:33.:53:40.

lads. It is looking good. By God, the country needs a left! It is

:53:40.:53:50.
:53:50.:53:50.

quite clear it will be the euro, any time soon. No is the straight

:53:50.:53:55.

answer. I think we have done pretty well so far. We might beat Italy

:53:55.:54:00.

but I think we will probably get knocked out by the Germans. First

:54:00.:54:05.

of all we are unlucky side. I think we will be the only financially

:54:05.:54:09.

sound country come the final and we will win because of that. They can

:54:09.:54:16.

but we must not get carried away. We will take each game as it comes.

:54:16.:54:20.

They have benefited from the lack of hype and the rest of it. They

:54:20.:54:30.
:54:30.:54:31.

can go all the way. Can England win? If they do, or will it mean a

:54:31.:54:41.
:54:41.:54:41.

feel-good factor and sweep the nation? Welcome to both of you.

:54:41.:54:45.

What do you think? I think it has been a good performance, better

:54:45.:54:51.

than expected so far. Will have to wait and see what happens at the

:54:51.:54:53.

weekend. Better than expected because everyone had low

:54:53.:54:58.

expectations. I have watched these matches. They are not brilliant.

:54:58.:55:03.

They have got through, which is fantastic. Data not shown a great

:55:03.:55:08.

sense of brilliance. We have had better England teams in the past. -

:55:08.:55:13.

- they have not shown. We will will them on to win at the next game on

:55:13.:55:17.

Sunday. What chances to they have of reaching the final? We have to

:55:17.:55:23.

get past Sunday and probably get past the Germans. Let's see what

:55:23.:55:27.

happens. Jeremy Browne asked about the consistency of policy in terms

:55:27.:55:33.

of ministers going to watch matches in the Ukraine. Do you think they

:55:33.:55:38.

should go if England reaches the final? I'm not sure they should go.

:55:38.:55:44.

I take the position that, if you send a minister and they lose, they

:55:44.:55:49.

could Jinks the team. I am the superstitious football fan. Maybe

:55:49.:55:55.

we will just leave it. Next come on to the issue of effect on the

:55:55.:56:02.

country and politics. -- next, to the issue. In terms of political

:56:02.:56:10.

boost, it is hogwash. There is no evidence this has evidence on

:56:10.:56:14.

people's political views. What is more significant is the state of

:56:14.:56:19.

the weather. In the brief summer we had last month, the month before,

:56:19.:56:24.

we had the slight blip in people's economic confidence and in a

:56:24.:56:29.

general attitudes towards life. not football? Not football. What

:56:29.:56:34.

about if they reach the final? With that whip up a bit of national

:56:34.:56:41.

fervour? You can go back to 1966. I cannot remember the time what the

:56:42.:56:46.

national mood was like. Going back and consulting the polling digests,

:56:46.:56:52.

there was no discernible impact, even though we won it in London on

:56:52.:56:57.

up own territory. On the tournament like this, possibly in the World

:56:57.:57:01.

Cup, they might be an impact that last a week or so that nothing more

:57:01.:57:09.

enduring than that. 1966 is a myth. The election took place 17 weeks

:57:09.:57:14.

before the World Cup finals. polling numbers at the time, month-

:57:15.:57:23.

by-month by month... In 1970, Harold Wilson lost unexpectedly --

:57:23.:57:30.

unexpectedly took Ted Heath. We to say there is no correlation between

:57:30.:57:36.

Wilson losing an inspection -- an election he is expected to win and

:57:36.:57:42.

England being lost out? I remember watching the World Cup in 1970. I

:57:42.:57:48.

had to get my grandfather's house because he had the colour

:57:48.:57:51.

television. -- to go to my grandfather's house. I do not think

:57:51.:57:57.

there is the same access to the Games as there is today. I think it

:57:57.:58:04.

is very easy. Do you think the Government might hope for a bit of

:58:04.:58:11.

a lift from the football? I agree with Andrew. Football is the big

:58:11.:58:17.

mass sport for the nation. I do not think a team's result has much to

:58:17.:58:22.

an impact on the political situation. Harold Wilson blamed it

:58:22.:58:28.

on a consignment of two jumbo jets and diamonds into Hatton Garden

:58:28.:58:35.

which changed trade figures. Not football! England any wins the

:58:35.:58:41.

World Cup when Labour was in power. That is his gag. That is

:58:41.:58:45.

irrefutable. Thank you for being a guest of the day. Thank you to all

:58:45.:58:51.

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