12/12/2012 Daily Politics


12/12/2012

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Morning, Foulkes. This is the Daily Politics. Something is clearly

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rotten at the heart of our banking system. HSBC, Britain's biggest

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bank, has just been slapped with the biggest-ever banking fine, over

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�1 billion for money laundering involving drug cartels. And rogue

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regimes, and terrorists. The US Department of Justice accused the

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Bank of having an astonishing record of dysfunction.

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Westminster has been besieged by the lovers of a pint, who today

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want to get rid of the so-called beer escalated you to.

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Has the Government jilted the gay My passionate belief is that the

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second most precious thing in life is the right to express yourself

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freely. And we will be looking at moves afoot to get the law on

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All that and more coming up and the next 90 minutes. With us for the

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duration on the 12th of the 12th of 2012 -- scary! We have some up and

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coming stars of the political firmament. Nick Hurd, son of

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Douglas. He is minister for civil society. You won't find much of

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that in here! According to the Daily Mail, he has modelled for the

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Boden catalogue. Is that true? is true. He won't know what that is,

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but I do. And we also blessed by the shadow

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business secretary, a male model in his own way, Chuka Umunna. He

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apparently sang the Mr Bean theme tune. Is that true? It is, with

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several other people. That is my claim to fame! I got two right in a

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row! First, the banks. British banks are creating headlines for

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all wrong reasons. HSBC has been fined more than �1 billion, yes, I

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said billion, not million, for helping launder money for Mexican

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drug cartels and rogue states such as that nice place, North Korea,

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which has just launched a missile. Standard Charter has been fined

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almost �200 million for sanctions- busting on behalf of nice regimes

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like Iran and Libya. City traders have been arrested for allegedly

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fixing the London interbank rate, LIBOR, for which Barclays has

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already been fined almost �300 million. And the tax payers had to

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fork out �270 million to Northern Rock customers because the bank

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couldn't keep its paperwork in order. That only leaves the co-op

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unscathed. Good old co-op! HSBC turned a blind eye to money

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laundering by drug cartels, terrorists and regimes in Cuba,

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Iran, Libya and Burma. It was the Bank of choice for Mexican drug

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gangs. They used the bank so often they build special boxes to fit

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into HSBC's teller slots. How could this happen to a British bank? You

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used to be with Flemings, another British bank. Her who behaved a lot

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better. The fundamental problem here at the root of all this is

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that banks were regulated very badly. Gordon Brown has admitted

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that. The regulatory regime in which banks operated was far too

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lax. I think there is also another problem, the way in which bankers

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are paid, it is all about maximising short-term profit. But

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we are now taking a serious approach to regulation, which we

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haven't had for 30 years. It wasn't the rules. The problem was that

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people were breaking the rules. This is a matter of criminality!

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Absolutely. That is the particular issue here. In relation to Northern

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Rock, I don't think it is. And ask you about HSBC. It has to be

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criminality if you are money laundering for grown -- drug

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cartels in Mexico. I'm amazed nobody has gone to jail over this.

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Ditto. To say that we should have had better regulated banks is

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nonsense. Many, including Ed Balls, agree that the political consensus

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which was Pro a light touch regime was wrong at the time. But the

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important thing for us is to rebuild trust and confidence in the

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British banking sector. It is going to take a long time. It will, but

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there is a national interest in this. Increasingly, people have

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been talking about it being a London problem, of the back of

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LIBOR, PPI misselling, interest rates and so on. We have got to

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resolve this. I am proud that we have the world's global financial

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services sector here in London, but we have got to maintain that

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position. We are particularly seen with the regulators in New York,

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seeking to make political capital out of London's position. Do you

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think they are picking on us? think there was definitely a hint

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of that in respect of Standard Chartered and the New York

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regulator. There were sources close to the Fed and close to the

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Treasury in the US who looked not very favourably on the attitude

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adopted. Standard Chartered was found guilty of sanctions busting

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for a nice places like Iran, Burma and Libya. I am not defending any

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of the Rhondda whatsoever. I am simply making the point that we

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have a leading financial services centre here and we have got to

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maintain that position and rebuild trust and confidence. It isn't just

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an issue for regulators. It is an issue for the leaders of the big

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banks themselves. This isn't just a few rotten apples. We need to

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fundamentally change the culture of our institutions. Most of the HSBC

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wrong doing took place between 2002 and 2010. He was chief executive of

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HSBC for most of that time? I... Mr Green? That is right. Stephen Green.

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And what does he do now? He is a trade minister. How can you have a

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trade minister who presided over a bank, chairman from 2006-2010, when

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all this was going on? He has got to account for himself. He regrets

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it, he says. He hasn't accounted for himself. He is open to

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accountability on that. I like Stephen Green. I think he is a good

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chap. There are a lot of people who say it that they think he has done

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a good job as trade minister, but he could have put this issue to bed

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if he had come to the House of Lords as many were asking and dealt

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with questions on this topic. But he hasn't allowed people to

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question him, to hold him to account. That's the problem.

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left with a pension pot of... Anyone like to guess? It's not

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small. Over half a million a year, probably. �19 million pension pot.

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According to my notes here. And this is a man who was chairman of a

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bank that turned a blind DI to money laundering by drug cartels,

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terrorists and regimes in Cuba, Iran, Libya and Burma. Ordinary

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people watching this programme, struggling to make ends meet as

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their fuel bills go through the roof, will be saying, there is

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clearly one law for these kinds of people, a totally different law for

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me. There is a huge amount of anger at the banks, and this will only

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throw more petrol on the flames. is on the banking reform committee.

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Northern Rock taking 270 million from the taxpayer, on top of the

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billions already given to bail them out. It is stupidity. It is lack of

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information, typical of the way in which the banks were operating at

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the time. We need to get regulatory framework, and we are making

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progress. On this northern Rock issue, and people have been seeing

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stories about them having to pay out this money, why, given that the

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Government knew about this in October, would it not factored into

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the forecast and provided to the OBR to factor into their forecasts

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of public sector debt? That is one for the Treasury. I don't know the

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answer. They wanted to keep it out of the public view? Do not think of

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the Treasury knew about it, they should have factor that in? With

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the greatest respect, I am not taking any lessons from a Labour

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politician about failure to regulate the bank's! We need to

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conduct a proper inquiry and see what comes out of that. It is an

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unprecedented litany of disasters in the banking sector. Household

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names like HSBC, Barclays. I don't think we have heard the last of

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them. You have on this programme, because Jo has a much more

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important subject. Not a good day for the banks, and also not for

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beer. What would motivate 1,000 angry men and a few women to

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descend on Westminster on such a winter's des? The rising price of

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beer, of course. The government's alcohol duty escalator increases

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the price of the tax on beer by 2% per year more than the rate of

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inflation. CAMRA's chief executive is in Westminster. I notice the

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signs behind you. I believe they are the signs of pubs that have

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shut. Is that correct? They are indeed, and some of hour

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campaigners are here today. These are people who have lost their

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local pubs, and one of the reasons for those pub losses is undoubtedly

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the high rate of tax we are paying. We would like to see the escalator

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scrapped. Excuse me for using a hackneyed phrase. We are all in

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this together. Why shouldn't be a drinkers pay a little more? No one

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is saying they shouldn't pay their fair share. But what is happening

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is that they are paying 2% every year above the rate of inflation.

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We are saying scrap the escalator. The attacks shouldn't go up by more

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than the rate of inflation. The government's figures show that over

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the next two years, they are expecting their beer tax revenue to

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fall while beer drinkers are still paying through the nose. That

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doesn't look like good politics to me. You are complaining about the

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price of beer, but according to the campaign for real-ale and the

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editor of the Good Beer Guide, real-ale has never been in ruder

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health. Breweries are opening. They have managed to buck the trend on

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the double-dip recession because there is a surge of the number of

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brewers coming onto the scene. are here to talk about the overall

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beer market, and of course pubs. If you look at the whole of the UK,

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not just real ale, that has just declined massively over the last 20

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years, and it continues to do so, so if we are going to get

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investment back into the market place and back into jobs, we need

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to see some support for the brewers, but more importantly, when we are

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seeing so many pubs closing, and we're talking about an industry

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that supports a million jobs, there is a real opportunity here for the

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Government to show some support for a great British industry and invest

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in British jobs. The chairman of the all-party Save the pub group,

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you were not doing very well. could ask other people. You can ask

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CAMRA members. We are campaigning on a number of issues. The unfair

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rates of beer duty is one of them. Today we are here to talk about

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beer duty. The increase escalator doesn't make sense. It is stifling

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business, closing pubs. What we are calling for today is common sense.

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It doesn't make sense to have an escalator introduced in a

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completely different economic environment in 2008, when inflation

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was different and the cost of living was different. This is doing

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damage to a great British industry, and doing damage to pubs who can't

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absorb the extra costs. But it is your Chief Secretary to the

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Treasury that keeps putting it up. Have you spoken to Danny Alexander

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about this? I have indeed, and I raised it in Treasury Questions

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yesterday. He said it is being looked at, and we are trying to

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push the case. Alistair Darling left us with a strange situation,

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criticised by Conservatives and Liberal Democrat MPs when it was

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introduced, and now being imposed by Labour MPs. This is a tax that

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no longer makes sense. We are going to do everything we can. There are

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well over 1,000 CAMRA members giving a very clear message that

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the beer duty escalator is bad for British pubs, and we hope we met

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that they will see sense. Just before we go, is it true you are

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only allowed in your supporters to have tea and biscuits before they

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meet the MPs? The beer is saved for later? Everybody will get a good

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old pint of real-ale on CAMRA later! Probably a wise move. Well

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done for asking. Sorry about that. Cheers to both of you! We do the

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same, tea and biscuits before and Do you support this campaign?

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I'm a big fan of CAMRA. They were concerned about the issues which

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affect pubs, and it's more complex than the beer duty in terms of

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Wyatt public houses are struggling. There is lots of social factors,

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not least the price of booze in the supermarkets. This escalator was

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introduced by a Labour. Would you like to scrap it? What I do know is

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that the Government is very sensitive to the cost of living

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issues in relation to council tax, fuel duty. Rail fares. At some

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point, you do have to recognise there are difficult decisions to be

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taken. The escalator may be one of them. CAMRA is furious with a

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government at the moment because they would introduce a statutory

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code to govern the relation between tenants and large pub companies and

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they have remained on so many of their commitments. That needs to be

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dealt with. The seal on anniversary in January when the Government

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promised to help small pubs which are shutting and they have not done

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yet. Secondly, where pubs are closing, going under, you often see

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supermarkets moving straight in because you don't need to change

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the planning laws. On the review of the beer duty, we support the

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review. Would you like to see it scrapped? Our commitment to reduce

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VAT to 17.5% would cut the price of beer by 5p. That actually mean

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something to people. We are supporting the review. Thank you,

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gentlemen. Time, as they say. Do you think anybody who watches

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this programme earns millions of pounds? I don't know how much

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:18:28.:18:32.

people in here. I don't know. Enough of this. Now, you bunch of

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lazy, stay-at-home, silly, nothing better to do than watch the useless

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Daily Politics, numpties. Watch this. Oi, now you watch it!

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Insulting me is possibly a criminal offence. And if that doesn't spook

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you, the sight of Peter Tatchell dressed as a policeman and with a

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Pantomime Dobbin is definitely enough to scare the horses. Section

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5 of the Public Order Act was written 26 years ago to tackle

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football hooligans by making it a criminal offence to use insulting

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words or behaviour. It's united unlikely bedfellows in a campaign

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to reform it, after cases of a Christian arrested for saying

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homosexuality was a sin. A fine later quashed for a teenager who

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said woof woof to some labradors. And a student arrested for saying

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to a police officer, "Excuse me". Do you know your horse is gay?

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is insulting. You on nicked! remember I had been here before in

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a fictional context. I once did a show called Not the 9 o'clock News,

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some years ago, and we did a sketch where grief these Jones played

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Constable Savage. A racist police officer to whom I, his station

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commander, is given a dressing-down for arresting a black man on a

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string of ludicrous charges. The charges for which he was arrested

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worthies. Walking on the cracks in the pavement. Walking in a loud

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shirt in a built-up area during the hours of darkness. And one of my

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favourite, walking around all over the place. He was also arrested for

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urinating in a public convenience. And the looking at me in a funny

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way. Who would have thought that we would end up with a law which would

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allow life to imitate art so exactly if? It's often used to

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arrest people for expressing opinions and beliefs. And we think

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that is dangerous. It is not compatible with a free and

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democratic society. We are delighted the cross-party group of

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MPs are supporting the appeal and we have the backing of both the

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current director of Public Prosecutions and the formal one.

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Perhaps the Government's only concern is appearing to licence

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:21:14.:21:21.

insulting police men. Right I'm The horse was nodding in agreement.

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Anyway, Giles Dilnot there. And we're joined now by the Liberal

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Democrat President, Tim Farron. Welcome back to the Daily Politics.

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You want to see insulting removed from the Public Order Act, why?

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It's important to be courteous and polite. It's not wise to insult

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people. What we're talking about is not the banter we have been

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discussing, but the rights of people of deeply-held convictions

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to express them in a way not meant to be abusive, not meant to cause a

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public order offence, but is simply likely to rile those who take

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different positions. I have the National secular Society and the

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Christian Institute in my office not long ago arguing for the right

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to defend and insult one another. They should be allowed to do so.

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when that drug Oxford student insulted the police force, by

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telling the police officer that his horse was gay, he was then arrested

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for making homophobic remarks. If you change the law, this stuff

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could not happen anyway? response to this, there is no

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offence which has been committed in the last few years under this

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political heading which would not have been easily prosecuted under

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abusive behaviour, incitement to violence, anything already in

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existence in the law. The issue is protecting freedom of speech, not

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reducing the powers of the police. But this is a much coarser nation

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than it used to be. The traditional British politeness and civilised

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behaviour has gone out of the window. You only have to drive

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around London. The House of Commons. Drivers are here behaved the way

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drivers used to be paid in New York. Are you sure you want to make his

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even more of a rude society? think the issues the police are

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concerned about over whether they can apprehend people who are

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causing difficulty, they are unfounded concerns because the law

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already allows people to be arrested for abusive behaviour,

:23:33.:23:38.

violent, threatening behaviour and so on. Even an intentional in salt

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is something different. We're talking at the freedom of speech

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for people with political, religious, philosophical

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convictions to be able to say things which are in the face of

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other people. We have a right to offend and a duty to accept that

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offence and a free society. What to say about courtesy is different. I

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agree with you. Western society as a whole is losing very important

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basic manners that we once had. It's a sad thing but it is not

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affected by the Government of any colour deciding to prevent free

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speech. If we take a rift out of the Andrew Mitchell playbook, and

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call some body a pleb, that is Ruud and stupid to do. But should not be

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illegal in your view, is that right? I'm not sure. The

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interpretation of existing law, intentional insults it would be

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something which is potentially actionable. If somebody perceives

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there had been insulted, I, as a Christian, being insulted by some

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body saying there is no God, get over it, I should be able to live

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for that. If somebody is an atheist, and has offended by me saying they

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are going to hell, something like that, they have got to live with

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that. It's an honest exchange of views. Let's see it your

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parliamentary colleagues agree. not sure we are that course as a

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society. Shakespeare and Chaucer they were pretty bad. I'm going

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back a bit. It may be nice inside the Carlton Club. I work in the

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House of Commons and it pretty tough. There is a clear issue here.

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Which is why we are consulting on it and reviewing the conclusions.

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The word insulting leads to challenges. Would you go along with

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this? I think the Home Office need to look at it. All right. We are

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not convinced over the need to change this. We will listen to the

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campaigners on it but I think you can have freeze speech without

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needing to insult people. -- a free speech. It's about where you

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personally feel insulted? It's a difference between are being

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deliberately offended by somebody else for so we have the equal

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marriage issue this week and those sides should be expressed without

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worry of being prosecuted. We will keep you posted. Thank you. Now,

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he's a man of principle who achieves what he wants to do. And

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he prevails in the end because he's honourable, decent, a great British

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hero. Who could Tom Baldwin, Ed Miliband's spin doctor, possibly be

:26:34.:26:41.

talking about? Wel,l Wallace of Wallace and Gromit fame. The

:26:41.:26:43.

cartoon character that Times cartoonist Peter Brooks has

:26:43.:26:47.

compared to the leader of the Labour party. Unable to shake off

:26:47.:26:50.

the perhaps unfavourable comparison, the Labour leadership team have

:26:50.:26:56.

decided to embrace it. "He's got a nice dog" says Mr Miliband. And

:26:56.:26:59.

Wallace, or Ed Miliband, also reveals in an interview for Grazia

:26:59.:27:02.

magazine what he bought his wife Justine for her birthday. Jewellery,

:27:02.:27:09.

perfume, underwear perhaps? No, he bought her a coffee machine. Used

:27:09.:27:15.

for. -- used for. Well, Mrs Wallace, I mean Mrs Miliband, if you're

:27:15.:27:18.

watching, we've got the perfect accompaniment for a coffee machine.

:27:18.:27:21.

We'll remind you how to enter in a minute. But let's see if you can

:27:21.:27:31.
:27:31.:27:31.

Apology for the loss of subtitles for 41 seconds

:27:31.:28:13.

It is twice the size of Trafalgar Square. It's quite is twice the

:28:13.:28:23.
:28:23.:28:37.

height of Nelson's Column in the # You've got a lot to answer for #

:28:37.:28:47.
:28:47.:28:48.

Baby, I love you. # You've got a lot to answer for...

:28:48.:28:58.
:28:58.:29:00.

Lots of guessing in the studio here. To be in with a chance of winning a

:29:00.:29:03.

Daily Politics mug, send your answer to our special quiz email

:29:03.:29:06.

addres. And you can see the full terms and conditions for Guess The

:29:06.:29:16.
:29:16.:29:17.

Year on our website. Maybe I can get one? I only work here! It's

:29:17.:29:22.

coming up to midday here. Just take a look at Big Ben. It's a cold but

:29:22.:29:29.

rather nice winter's day in London town. PMQs is on its way. Nick

:29:29.:29:33.

Robinson is here. They is is the first chance for Labour to spell

:29:33.:29:39.

out what they would do to the benefit cuts or are joining the tax

:29:39.:29:43.

credits are because, crucial to the argument, an argument about

:29:43.:29:47.

language. The Treasury, George Osborne, wants to talk about

:29:47.:29:51.

capping benefits. Are they are going up but not that fast. Labour

:29:51.:29:55.

are saying, 60% of the people affected are working families, it's

:29:55.:30:00.

a real terms cut say you should talk about cuts to tax credits. The

:30:00.:30:03.

Shadow work and pension secretary has called it a shirkers tax. You

:30:03.:30:13.

listen to these exchanges today, and remember this battle about

:30:13.:30:16.

language is entirely to do with the politics of whether you regard this

:30:16.:30:23.

as unfair. If you describe the policy which never it fits into a

:30:23.:30:33.
:30:33.:30:36.

TV graphic or sound bite. Led to go Thank you, Mr Speaker. This morning

:30:36.:30:39.

I had meetings with ministerial colleagues and others, and I shall

:30:39.:30:47.

have further such meetings later today. Can my right honourable

:30:47.:30:50.

friend confirm that the fall in youth unemployment figures is the

:30:50.:30:57.

largest since records began? And will he meet with me to discuss how

:30:57.:31:00.

employment opportunities in Tamworth, including youth

:31:00.:31:04.

employment, can be promoted still further?

:31:04.:31:08.

I would be delighted to meet with my honourable friend to discuss the

:31:09.:31:12.

business situation in Tamworth, but he is absolutely right. This

:31:12.:31:16.

morning's figures show the largest quarterly fall in youth

:31:16.:31:21.

unemployment on record. 72,000 fewer people unemployed this

:31:21.:31:26.

quarter. There is no room for complacency, still far too many

:31:26.:31:29.

people long-term unemployed, but in these figures we can see 40,000

:31:29.:31:35.

more people in work, they can seize up, unemployment down by 82,000,

:31:35.:31:40.

and the claimant count down. Over 1 million extra private sector jobs

:31:40.:31:50.
:31:50.:31:51.

under this government. Mr Speaker... Mr Speaker... Mr

:31:51.:31:56.

Speaker, today's fall in unemployment and rising employment

:31:56.:32:04.

is welcome. Part of the challenge remains the stubbornly high level

:32:04.:32:08.

of long-term unemployment. Does the Prime Minister agree that this

:32:08.:32:14.

remains a fundamental importance, for the country as a whole? I do

:32:14.:32:18.

agree, and as I mentioned in my first dancer, long-term

:32:18.:32:22.

unemployment remains stubbornly high. The good news is that long-

:32:22.:32:27.

term youth unemployment is down by 10,000 this quarter, so that is

:32:27.:32:30.

encouraging. Long-term unemployment for others is still a problem,

:32:30.:32:35.

which is why the work programme and getting the work programme right is

:32:35.:32:44.

so important. Clearly there is more to do. He said on 18th January,

:32:44.:32:48.

unemployment will get worse not better. Perhaps he would like to

:32:48.:32:54.

withdraw that. Mr Speaker, I am glad the Prime Minister recognises

:32:54.:32:58.

that long-term unemployment is still a challenge. I want to ask

:32:58.:33:02.

him about the people who were doing the right thing in finding work. In

:33:02.:33:05.

his Autumn Statement, the Chancellor decided to cut tax

:33:05.:33:09.

credits and benefits, and he said it was the people with the curtains

:33:09.:33:12.

drawn who would be affected. Can the Prime Minister tell us how many

:33:12.:33:21.

of those hit actually in work. fact is this, that welfare needs to

:33:21.:33:27.

be controlled, and everyone who was on tax credits will be affected by

:33:27.:33:32.

these changes, because we have to get on top of the welfare bill.

:33:32.:33:36.

That is why we are restricting the increase on out-of-work benefits,

:33:36.:33:40.

and it is also the reason why we are restricting in-work benefits.

:33:40.:33:45.

But what we have also done is increase the personal allowance,

:33:45.:33:48.

because on this side of the house, we believe in cutting people's

:33:48.:33:57.

taxes when they are in work. He is raising the taxes of people in work,

:33:57.:34:02.

and he didn't answer the question. The answer is, despite the

:34:02.:34:09.

impression given by the Chancellor of the us Cheka, over 60% of those

:34:09.:34:13.

affected a Ren work -- the Chancellor of the Exchequer. It is

:34:13.:34:18.

the factory work on a night shift. It is the cleaner who cleans the

:34:18.:34:21.

Chancellor's office while his curtains are still drawn and he is

:34:21.:34:28.

still in bed! The chancellor calls them scroungers. What does the

:34:28.:34:33.

Prime Minister call them? He just said that we are not cutting taxes

:34:33.:34:38.

for people in work. Someone who is on the minimum wage and works full-

:34:38.:34:46.

time will see their income tax bill cut by 1 1/2 under this Government.

:34:46.:34:52.

-- Cat by a half. This Government will say to working people, you can

:34:52.:34:57.

earn another �3,000 before you even start paying income tax. That is

:34:57.:35:02.

why we have taken 2 million people out of tax altogether. He should be

:35:02.:35:06.

welcoming that. This is the party for people who work. His is the

:35:06.:35:14.

party for unlimited welfare. course, he is just wrong on the

:35:14.:35:18.

detail. The Institute for Fiscal Studies table says quite clearly

:35:18.:35:24.

that, on average, working families are �534 a year worse off as a

:35:24.:35:30.

result of his measures. I notice he wants to get away from what the

:35:30.:35:33.

Chancellor of the Exchequer said last week, and we know what the

:35:33.:35:40.

Chancellor was trying to do. He was trying to play divide and rule. He

:35:40.:35:48.

said his changes, and I quote, "were for people living a life on

:35:48.:35:53.

benefits, still asleep while their neighbours go out to work." but it

:35:53.:36:00.

turns out it just wasn't true. It is a tax on strivers. Will the

:36:00.:36:03.

Prime Minister now admit that the Chancellor got it wrong and the

:36:03.:36:10.

majority of people hit are working people? He says that we haven't got

:36:10.:36:17.

the detail right. We know his approach to detail is to take a

:36:17.:36:23.

2000 page report and accepted without reading it! That is his

:36:23.:36:27.

approach to detail. I am surprised the shadow chancellor is shouting

:36:27.:36:37.
:36:37.:36:37.

again. We learned last week, like bullies all over the world, he can

:36:38.:36:47.
:36:48.:37:03.

Order, order! I want to hear the Prime Minister's answer. Order!

:37:03.:37:11.

Let's hear it. Specifically answer the leader of the opposition's

:37:11.:37:16.

question. He mentioned the Institute for Fiscal Studies figure.

:37:16.:37:20.

They do not include the personal allowance increase put through in

:37:20.:37:25.

the Budget. They do not include the Universal Credit changes which will

:37:25.:37:31.

help the working poor. Under this government, we are lifting the

:37:31.:37:35.

personal allowance, taking millions out of tax, standing up for those

:37:35.:37:40.

who work. He only stand up for those who claim. I must say, Mr

:37:40.:37:45.

Speaker, I have heard everything when the boy from the Bullingdon

:37:45.:37:54.

Club lectures people on bullying. Absolutely extraordinary. Have you

:37:54.:38:04.
:38:04.:38:09.

He doesn't want to talk about the fact, but let's give him another

:38:09.:38:14.

one. He is hitting working families, and the richest people in our

:38:14.:38:20.

society will be getting a massive tax cuts next April. An average of

:38:20.:38:26.

�107,000 each for people earning over a million pounds. Mr Speaker,

:38:26.:38:28.

is the prime minister the only person left in the country Rue

:38:28.:38:32.

cannot see the fundamental injustice of giving huge tax cuts

:38:32.:38:37.

to the richest while punishing those in work on the lowest pay?

:38:37.:38:41.

The tax rate for the richest under this government will be higher in

:38:41.:38:46.

every year than it was for any year when he was in government. He

:38:46.:38:49.

obviously has a short memory, because I explained to him last

:38:49.:38:54.

week that under his plans for the 50p tax rate, millionaires paid �7

:38:54.:38:59.

billion less in tax than they did previously. The point of raising

:38:59.:39:04.

taxes is to pay for public services. We are raising more money for the

:39:04.:39:08.

rich, but where he is really so profoundly wrong is the choice that

:39:08.:39:13.

he has decided to make. Because the facts are these: Over the last five

:39:13.:39:18.

years, people in work have seen their incomes go up by 10%. People

:39:19.:39:23.

out of work have seen their income go up by 20%. At a time when people

:39:23.:39:27.

accept a pay freeze, we should not be increasing benefits. And yet

:39:27.:39:32.

that is what he wants to do. A party that is serious about

:39:32.:39:35.

controlling welfare isn't serious about controlling the deficit

:39:35.:39:41.

either. From the first part of his answer, he is claiming to be Robin

:39:41.:39:46.

Herd. I don't think that is going to work. He is not taking from the

:39:46.:39:50.

richest in giving to everybody else. And didn't the business Secretary

:39:50.:39:56.

give it away? This is what he said: "what happened was some of their

:39:56.:40:02.

donors, very wealthy people, stamped their feet. So they

:40:02.:40:08.

scrapped the mansion tax and went ahead with a 50p tax cut." Mr

:40:08.:40:11.

Speaker, they look after their friends, the people on their

:40:11.:40:16.

Christmas card list. Any well, they hit people who they never meet and

:40:16.:40:23.

whose lives they will never understand. His donors put him when

:40:23.:40:28.

he is, pay him every year, determine his policies. But it is

:40:28.:40:34.

perfectly clear, Mr Speaker, what the Labour Party's choice is. Their

:40:34.:40:38.

choice is more benefits paid for my more borrowing. They should listen

:40:38.:40:46.

to the Labour trade minister who said this: "you know what you call

:40:46.:40:50.

a system of government way you say, oh, we're in trouble, we will go

:40:50.:40:55.

and borrow low then give it to people. It is called Greece. Close

:40:55.:41:05.
:41:05.:41:09.

they are not serious about the Thank you, Mr Speaker. Will the

:41:09.:41:13.

Prime Minister join me, and I am sure, the whole house, in sending

:41:13.:41:17.

our deepest sympathies and condolences to nurse Jacintha

:41:17.:41:24.

Saldanha who died this week. Does anybody wishing to support the

:41:24.:41:28.

family by donating to the King Edward VII hospital fund, and

:41:28.:41:32.

urging the press to preserve the privacy of this family. I am sure

:41:32.:41:35.

the whole house and indeed the whole country will join the

:41:35.:41:39.

honourable lady and join me in paying tribute to this nurse, and

:41:39.:41:43.

giving more our sympathies and condolences to her family. She

:41:43.:41:47.

clearly loved her job, cared deeply about the health of her patients,

:41:47.:41:51.

and what happened is a tragedy. There will be many lessons to be

:41:51.:41:55.

learned, and that echo what she said about the press keeping their

:41:55.:42:05.
:42:05.:42:08.

distance and allowing his family Is the prime minister still

:42:08.:42:14.

intending to introduce the snoopers charter, euphemistically known as

:42:14.:42:19.

the communications and data Bill? Does he realise that he will be

:42:19.:42:26.

spying, his government, on more people in Britain than even all the

:42:26.:42:31.

press barons put together? Where did he get this advice and idea

:42:31.:42:41.
:42:41.:42:42.

from? Was it down at Wapping? Was it his friends down there? Tony?

:42:42.:42:52.

I really believe on this issue the Honourable Gentleman is wrong. This

:42:52.:42:58.

is an important issue, and I feel is very strongly. As Prime Minister,

:42:58.:43:01.

you have to take responsibility first and foremost for national

:43:01.:43:08.

security and people's safety. Data communications, this is not the

:43:08.:43:12.

content of a phone call, it is the fact a phone call took place, is

:43:12.:43:16.

used in every single terrorist case and almost every single serious

:43:16.:43:21.

crime case. The question in front of a house of Commons and indeed

:43:21.:43:24.

the House of Lords is simply this: Because we currently have that data

:43:24.:43:28.

for fixed and mobile telephony, what are we going to do as

:43:28.:43:32.

Telephony increasingly moves over the internet? We can stand here and

:43:33.:43:38.

do-nothing and not update the law. The consequence will be fewer

:43:38.:43:42.

crimes solved, few were terrorists brought to justice. I do not want

:43:42.:43:46.

to be the prime minister who puts this country into that position.

:43:46.:43:52.

The Government's proposals on judicial review conflict with

:43:52.:43:56.

article 29 of Magna Carter 1297. Does the Government proposed the

:43:56.:44:06.
:44:06.:44:09.

We don't intend that, but I am sure that he would understand... Order!

:44:09.:44:15.

Order! I would like to hear this. The point we are making is that the

:44:15.:44:19.

extent of judicial review has massively increased in recent years,

:44:19.:44:25.

and we think that there is an need for her recent rules to extend the

:44:25.:44:28.

costs of judicial review so that the costs are covered. Then we can

:44:28.:44:31.

maintain access to justice, but speed up the wheels of government a

:44:31.:44:36.

little. Will the Prime Minister answer the

:44:36.:44:40.

question he was asked three times by my Right Honourable Friend, and

:44:40.:44:44.

dodged a few moments ago? Willie confirm the majority of households

:44:44.:44:50.

will be hit by the real-terms cuts to benefits and tax credits are

:44:50.:44:57.

working household? The point I made is bigger than that. Everyone on

:44:57.:45:01.

working tax credits will be affected by the fact we are only

:45:01.:45:06.

increasing them by 1%. But the fact is we have to control welfare to

:45:06.:45:10.

deal with the massive deficit we were left by the party opposite,

:45:10.:45:14.

and there is a choice in politics. You could either control welfare

:45:14.:45:19.

bills, or you can say no to a welfare cap, no to the controller

:45:19.:45:25.

of welfare, borrow, build a power deficit and put us back where we

:45:25.:45:32.

came from. At the Liaison Committee yesterday, the Prime Minister began

:45:32.:45:36.

by saying that the Government would accept crucial Lords amendments to

:45:36.:45:41.

make the justice and security bill acceptable on secret courts. But he

:45:41.:45:45.

ended the session by appearing to say that he wouldn't accept those

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

amendments. Could you clarify which We want this to pass through

:45:55.:45:58.

Parliament, having listened to the excellent points through the House

:45:58.:46:05.

of Lords, I think the Leader of the Opposition is catching the disease

:46:05.:46:07.

of the Shadow Chancellor of not being able to keep his mouth shut

:46:07.:46:13.

for longer than five seconds. We will listen very carefully. The

:46:13.:46:21.

fundamental choice is to make sure that these proceedings are

:46:21.:46:31.
:46:31.:46:31.

available to judges and they should make a decision. The Environment

:46:31.:46:36.

Secretary this week described went to a bines as any appropriate

:46:36.:46:40.

technology which matured in the Middle Ages. Does he agree? Why

:46:40.:46:45.

not? The we are making serious investments in that renewable

:46:45.:46:52.

energy. We have set up a subsidy which stretches the tomb 2017 and

:46:52.:46:56.

that's why the renewable Energy capacity of this country has

:46:56.:47:01.

actually doubled in the last two years under this Government. Will

:47:01.:47:05.

he agree with me that not only has this Government had to deal with

:47:05.:47:10.

the catastrophic budget deficit which we inherited it from the

:47:10.:47:16.

former prime minister but also, as the figures reveal today, a tidal

:47:16.:47:20.

wave of emigration deliberately fostered by the Labour government

:47:20.:47:24.

concentrating on putting these two issues right are the most important

:47:24.:47:27.

issues facing this government for security for the people of this

:47:27.:47:33.

country? He makes an important point which is emigration was out

:47:33.:47:38.

of control under the last government. Net migration ran at

:47:38.:47:43.

over 200,000 a year, 2 million across a decade. Under sensible

:47:43.:47:48.

controls we have put in place, it's fallen by a quarter in recent years

:47:48.:47:53.

also what is interesting about this, you can have proper control of

:47:53.:47:57.

immigration while also saying to the world other universities are

:47:57.:48:02.

open to foreign students to come and study here, and as long as they

:48:02.:48:05.

have an English language qualification and a degree place in

:48:05.:48:09.

university, there's no limits on the numbers which can come.

:48:10.:48:13.

Controlling immigration, but making sure the best and brightest come to

:48:13.:48:20.

Britain. Iceland had a huge economic difficulties and rejected

:48:20.:48:25.

austerity and has seen a recovery driven by domestic demand.

:48:25.:48:35.
:48:35.:48:35.

Unemployment is 2.4% lower than the UK. Those with children receive the

:48:35.:48:41.

most support in Iceland. Will he congratulate them on working hard

:48:41.:48:47.

to turn things around and does he think is anything he can learn from

:48:47.:48:53.

Iceland? I think if the case for an independent Scotland is a makers

:48:53.:48:56.

more like Iceland, I'm not sure that will recommend itself to the

:48:56.:49:01.

voters. Britain and Iceland have very good relations and I will make

:49:01.:49:08.

sure it remains to be the case of. Can I welcome the fall in youth

:49:08.:49:12.

unemployment in Hastings, where it has fallen steadily for the past

:49:12.:49:20.

nine months and is at its lowest since May 2010. Will he consider

:49:20.:49:25.

the continuation of youth contracts are so that can continue?

:49:25.:49:29.

grateful for her point. We will continue with the apprenticeships

:49:29.:49:33.

which have reached over one million under this government but also with

:49:33.:49:36.

the youth contract and work experience because we are seeing

:49:36.:49:40.

large numbers of people going into work experience coming off benefits,

:49:40.:49:47.

finding a job and finding it's a very good start to a working career.

:49:47.:49:52.

On the day unemployment in Scotland show the largest fall at in four

:49:52.:49:58.

years, it is the as shocked as I am by reports in the newspapers that

:49:58.:50:03.

some of JobCentre managers were actively encouraging employers to

:50:03.:50:09.

convert paid vacancies in to unpaid work experience placements to

:50:09.:50:14.

satisfy dw p targets? Will he condemned this practice and ensure

:50:14.:50:20.

it ceases immediately? He makes an important point. We want work-

:50:20.:50:23.

experience places to be additional places, encouraging more people to

:50:23.:50:28.

get appealing for work so they have a chance of getting a job but it's

:50:28.:50:33.

good he welcomes the fact employment in Scotland as increased

:50:33.:50:38.

27,000 since the election and unemployment has fallen by 19,000

:50:38.:50:44.

this quarter, so we are making progress. Would the Prime Minister

:50:44.:50:48.

join me in welcoming the progress that has been made around the

:50:48.:50:54.

country since the autism Act 2009 in supporting adults with autism?

:50:54.:50:58.

And following the recent National Audit Office report, would he join

:50:58.:51:02.

me in encouraging his ministerial colleagues and local authorities

:51:02.:51:07.

across the country to accelerate his progress next year when the

:51:07.:51:15.

adult autism strategy is due to be reviewed? May I pay tribute to my

:51:15.:51:19.

friend who was instrumental in getting a landmark act on to the

:51:19.:51:24.

statute books. The impact of it continues right up to this day and

:51:24.:51:29.

beyond. We want all adults living with autism to live recording lives

:51:29.:51:34.

within a society which accepts them up. The review of the strategy is

:51:34.:51:39.

coming up next year between March and October. It is vital it is a

:51:39.:51:42.

cost government at but and I will make sure this is dealt with in a

:51:42.:51:49.

co-ordinated way. The Green Investment Bank was due to be given

:51:49.:51:54.

new borrowing powers in three years' time. But, in a few other

:51:54.:52:00.

chances abject failure to meet that borrowing target, because it was

:52:00.:52:02.

predicated on meeting those borrowing targets set by the

:52:02.:52:08.

Government, is he still committed to giving borrowing powers to the

:52:08.:52:14.

Green Investment Bank and, if so, when? This government has set up a

:52:14.:52:16.

Green Investment Bank within two years whereas the party opposite

:52:16.:52:24.

did nothing about this for 13 years. Even at a time of fiscal difficulty,

:52:24.:52:29.

because of the mess we were left in, we put �3 billion into this, so

:52:29.:52:33.

right now it doesn't need to borrow because it has the money to invest

:52:33.:52:38.

and I think what is needed is the equity risk finance and that's

:52:38.:52:44.

exactly what the Green Investment Bank will provide. He goes to

:52:44.:52:54.
:52:54.:52:57.

summer tomorrow. Has he noticed -- a summit. Has he noticed that the

:52:57.:53:02.

European Parliament is a parliament for the EU ensuring democratic

:53:02.:53:06.

legitimacy for the EU? Does he agree with this? What really say to

:53:06.:53:12.

the other leaders when he goes to their summit tomorrow? I do agree

:53:12.:53:19.

with him on this one. It is actually the national parliaments

:53:19.:53:22.

would provide the real democratic legitimacy within the European

:53:22.:53:26.

Union. When we are discussing banking union, it is to this House

:53:26.:53:31.

that we should account. It is to this size that represents our tax

:53:31.:53:35.

payers are that we should account and I always bear that in mind her

:53:35.:53:41.

when I am negotiating as I will be tomorrow at the European Council.

:53:41.:53:44.

Can the Prime Minister confirm the Autumn Statement revealed to the

:53:44.:53:49.

Government is now borrowing to London �12 billion more than it

:53:49.:53:59.
:53:59.:54:03.

previously planned to? -- to London �12 billion? -- �212 billion. The

:54:03.:54:10.

party opposite was disappointed that borrowing would come down this

:54:10.:54:16.

year but this is the fact. Prime Minister has rightly said we

:54:16.:54:21.

are locked in a global economic race. Does he share my concern that,

:54:21.:54:25.

having the highest aviation taxes and the world, makes it harder for

:54:25.:54:30.

business to compete? And it increases the cost of living? Will

:54:30.:54:38.

he ask the Treasury to conduct a full review? I very much understand

:54:38.:54:44.

the point. Obviously, I get lobbied regularly by countries around the

:54:44.:54:49.

world particularly Commonwealth countries about their passenger

:54:49.:54:52.

duty also we don't have plans to commission a further research

:54:52.:54:59.

because we have just complete -- completed a thorough consultation.

:54:59.:55:08.

We have limited the rise of it until 2013 so the rates have only

:55:08.:55:12.

increased by a �1 for the majority of passengers but I will bear in

:55:12.:55:16.

mind very carefully what he says. The Autumn Statement did not

:55:16.:55:20.

include a forecast of child poverty as a result of the policies

:55:20.:55:25.

announced. Can he confirm it will be published soon? Could he tell

:55:25.:55:29.

the House whether he really believes his policies will increase

:55:29.:55:35.

or reduce child poverty in Islington? We want to see a lasting

:55:35.:55:39.

reduction in child poverty and I think we need to have a policies

:55:39.:55:42.

which address, not only whether people are just above or below the

:55:42.:55:47.

poverty line, are but policies which address the causes of poverty.

:55:48.:55:52.

What traps people into poverty? Of course, not enough money is part of

:55:52.:55:56.

it, not enough jobs is another and that's why today's news on

:55:56.:56:00.

unemployment is so welcomed but we need to look at all of the things

:56:00.:56:05.

which trap people in unemployment which includes family breakdown,

:56:05.:56:14.

drug abuse, alcohol abuse and unemployment. As he knows, Plymouth

:56:14.:56:19.

is a global leader in the Marine Science Engineering Research. I

:56:19.:56:24.

very much welcome the initiative by the Government to spend more money

:56:24.:56:33.

on at the science base. Would he be willing to meet with me and

:56:34.:56:37.

Plymouth members of Parliament and businesses, to discuss how they

:56:37.:56:43.

could become involved in the small cities super broadband initiative

:56:43.:56:46.

and will help us to rebalance our economy and attract private

:56:46.:56:53.

investors? I'm a very happy to meet with him. I know he stands up

:56:53.:56:57.

strongly for Plymouth a's economy. On the science budget, we made a

:56:57.:57:01.

decision at the start of this government, to freeze the science

:57:01.:57:05.

budget rather than cut it, and I'm sure that was the right answer and,

:57:05.:57:11.

since then, on broadband, I will look carefully about what he says

:57:11.:57:15.

about it. I'm sure he will be glad to know Devon and Somerset have

:57:15.:57:20.

been allocated over �33 million it to deliver a super-fast broadband

:57:20.:57:24.

and we're working hard to make sure those plans are on track because

:57:25.:57:34.
:57:35.:57:35.

it's important for cities and rural areas, as well. The Prime Minister

:57:35.:57:38.

and members of this House will be fully aware of the serious threat

:57:38.:57:41.

posed to democracy by dissident republicans in Northern Ireland.

:57:41.:57:46.

The police have stated there is evidence of loyalist paramilitary

:57:46.:57:50.

involvement in some of the protests in Northern Ireland this week. It

:57:50.:57:53.

included a murder attempt on police officers protecting my constituency

:57:53.:57:58.

office. Will he not only condemned as reprehensible assault on

:57:58.:58:02.

democracy from those who style themselves as loyal, and willing

:58:02.:58:06.

agreed to meet with me and my colleagues, the justice minister

:58:06.:58:13.

for Northern Ireland, to discuss the grave security situation?

:58:14.:58:16.

absolutely join her in condemning the violence we have seen on the

:58:16.:58:22.

streets of Belfast. In no way are these people being loyal or

:58:22.:58:29.

standing up for being British for the violence is unjustified. I

:58:29.:58:32.

agree completely with what he said about the attack on the police

:58:32.:58:36.

officers. We should pay tribute to the work the Police Service of

:58:36.:58:40.

Northern Ireland do. I know the whole House would like to express

:58:41.:58:45.

our solidarity with the honourable lady and her colleagues who have

:58:45.:58:49.

been intimidated in recent days and a ball is happy to meet with MPs

:58:49.:58:54.

from Northern Ireland. But I am always happy to meet with MPs and

:58:54.:59:01.

Northern Ireland. Will he congratulate my two young

:59:01.:59:04.

entrepreneurs who have taken the initiative to start the Cornish

:59:04.:59:13.

cheese company and a passion company in my constituency? Does he

:59:13.:59:19.

agree this is just the sort of business initiative we need to see?

:59:19.:59:24.

I'm delighted to John honourable lady in congratulating the

:59:24.:59:29.

entrepreneurship -- joined the honourable lady in congratulating

:59:29.:59:35.

the entrepreneurship. I'm looking forward to pasting that cheese. I

:59:35.:59:40.

shouldn't maybe, because of my weight. The rate of start-up of a

:59:40.:59:43.

new businesses in this country is at a record high and because we

:59:44.:59:47.

need a rebalancing between the public and private sector, we need

:59:47.:59:56.

this to continue. In opposition, the Prime Minister said he wanted

:59:56.:59:59.

this government to be the most family a friendly government this

:59:59.:00:03.

country had ever seen. Why is the cutting maternity pay for working

:00:03.:00:09.

mothers? First of all,, what can honourable lady to the House of

:00:09.:00:12.

Commons and congratulate hair on her recent a by-election a success?

:00:12.:00:17.

We have had to take difficult decisions about welfare in and out

:00:17.:00:23.

of work. So we put a cap on 1% of all the working benefits including

:00:23.:00:29.

the one she mentions but, above all, on this issue, the right thing is

:00:29.:00:33.

to cut the tax as a people in work rather than take more in taxes and

:00:33.:00:37.

then redistributed through tax credits will stop we want to cut

:00:37.:00:40.

taxes on those who work and that's what we are doing and there will be

:00:40.:00:47.

more of it to come. Over the last five years, benefits have risen

:00:47.:00:51.

twice as fast as salaries for that does he agree that whilst we have a

:00:51.:00:55.

duty to the least well-off, it cannot be fair that people out of

:00:55.:00:58.

work enjoy bigger increases in living standards than those who

:00:59.:01:05.

work hard day and night to support themselves and their families?

:01:05.:01:09.

put that extremely clearly. Many people in our country have seen a

:01:09.:01:13.

pay freeze year after year after year. And yet welfare benefits have

:01:13.:01:20.

gone up. So, in politics, we face a choice. Do we go on putting those

:01:20.:01:24.

benefits up, which actually is not helping those people who are on the

:01:24.:01:30.

pay freeze in work, or do we take a tough decision? We have taken a

:01:30.:01:34.

tough decision. The only welfare minister Labour had called

:01:34.:01:38.

honourable member for Birkenhead, said there approach simply is not

:01:38.:01:46.

serious and once again, he is it right. May I congratulate the Prime

:01:46.:01:50.

Minister and the UK government on following the lead of the Scottish

:01:50.:01:55.

government and parliament in introducing equal marriage, minimum

:01:55.:02:00.

pricing by alcohol and the smoking ban up previously pulled up given

:02:00.:02:04.

that unemployment is now lower in Scotland and the rest of the UK,

:02:04.:02:06.

will he follow the lead of the Scottish government by introducing

:02:06.:02:16.
:02:16.:02:18.

a more cohesive measure for growth? There is an extra �300 million for

:02:18.:02:22.

the Scottish government to spend and so it they want to spend that

:02:22.:02:27.

on the shop already measures, they can, but I'm happy to say, when

:02:27.:02:31.

good policies are introduced in any part of the UK, we all have the

:02:31.:02:40.

opportunity to follow them. Statement. We'll return to that in

:02:40.:02:50.
:02:50.:02:50.

a moment. We saw the new dividing line in British politics. The

:02:50.:02:53.

uprating of benefits. The Government said they could only go

:02:53.:02:58.

up by 1% in the next three years. Now opposed by the Labour Party.

:02:58.:03:04.

There is a clear division there. It turned a little nasty. The Prime

:03:04.:03:10.

Minister described Ed Balls as a bully. He's probably do not before.

:03:10.:03:20.
:03:20.:03:20.

But he's probably done that before. He was asked whether he had wrecked

:03:20.:03:30.
:03:30.:03:34.

If only we could all draw a shroud over what we did at university!

:03:34.:03:41.

They have picked up on the debate. He was looking to me to make the

:03:41.:03:51.

point! You couldn't afford a restaurant, could you? I was very

:03:51.:03:58.

well behaved at university. Viewers also interested in the debate. The

:03:58.:04:03.

benefits discussion. This from Jacqueline in Keynsham. I am tired

:04:03.:04:07.

of being called a scrounger because I can no longer work. The

:04:07.:04:10.

Chancellor and the Prime Minister going on about drawn blinds and

:04:10.:04:14.

curtains is alienating a part of disabled society that has no choice

:04:14.:04:21.

in the matter. This from Helen Manning: Ed Miliband's continued

:04:21.:04:26.

reference to Sherpas not workers is so monotonous. He stands on the

:04:26.:04:33.

side of benefit claimants. Michael firm: David Cameron always quotes

:04:33.:04:37.

benefit claimants in percentages to make sure it sounds like people are

:04:37.:04:42.

getting more. But it only just covers the price rises. And this

:04:42.:04:47.

from Jeremy Clarke: Why aren't they are asking about the bank has yet

:04:47.:04:54.

again? Nick, there was a factual argument we are trying to get to

:04:54.:05:01.

the bottom of. The leader of the opposition said that if you only

:05:01.:05:11.
:05:11.:05:12.

increase in work benefits by 1%, that is a cut in real terms. The

:05:12.:05:16.

Prime Minister then said, that doesn't include this huge rise in

:05:16.:05:19.

personal allowances, so that particularly people on lower

:05:19.:05:22.

incomes will find that a huge chunk of their income won't be taxed at

:05:22.:05:30.

all. On first sight, I thought they had both made mistakes, but I have

:05:30.:05:34.

just check with the Treasury teams to see if they can provide some

:05:34.:05:38.

information. Ed Miliband said that the Institute of Fiscal Studies has

:05:38.:05:43.

said that the average loss, if you took into account everything, was

:05:43.:05:47.

�533 for families. In fact, Labour's own press release

:05:47.:05:52.

yesterday only applied to couples where only one person learns. The

:05:52.:05:55.

Government is increasing personal tax allowance. If there are two of

:05:55.:06:00.

you getting at, that obviously increases your income at the same

:06:00.:06:07.

time as a cat in real benefits level is curbing it. Five and and

:06:07.:06:13.

�34 is a figure that applies. The Prime Minister then claimed...

:06:13.:06:18.

what about fuel duty and all the rest of it? The Prime Minister

:06:18.:06:21.

claimed that this didn't include personal allowance, but I think it

:06:21.:06:25.

did. It would be remarkable if the Institute of Fiscal Studies, trying

:06:25.:06:29.

to do distributional analysis of the impact of all the changes that

:06:29.:06:33.

have been introduced, given that the increase in personal allowances

:06:33.:06:37.

one of the biggest and most expensive tax changes of all, I

:06:37.:06:41.

would be amazed if they didn't include that. I think that is

:06:41.:06:44.

absolutely right. So it is a question of what you include in the

:06:45.:06:51.

calculation. You can see, in very simple terms, the Institute of

:06:51.:06:58.

Fiscal Studies produced tables the day after important statements. How

:06:58.:07:02.

you win the bottom 10th, are you when the top 10th? If you are in

:07:02.:07:09.

the bottom five, below the average, you lose. The people just above,

:07:09.:07:12.

some of them again as a result of the personal tax allowance, of

:07:12.:07:17.

which counteracts that cap in the benefit levels. And the people at

:07:17.:07:21.

the very top lose because there was a different measure for pension

:07:21.:07:26.

taxes. But they lose because of a whole range of other steps as well,

:07:26.:07:30.

that the coalition government has taken. But in a sense what this was

:07:30.:07:34.

proving is partly what I was saying before, which is that language is

:07:34.:07:39.

crucial. That a viewer who roti in and said, and sick of his language.

:07:39.:07:42.

But we are not talking about benefits for the disabled, although

:07:43.:07:47.

I know it does affect employment support allowance, which some

:07:47.:07:53.

people who are disabled depend upon. People who are officially

:07:53.:07:59.

designated unable to work are not affected. But this language of are

:07:59.:08:09.
:08:09.:08:10.

you talking about a cut pre-tax, a Shericka Orest driver, the details

:08:10.:08:13.

are complicated. Both sides are competing for language that works

:08:13.:08:21.

for them. Labour and now opposed for both the 1% up rate for both

:08:21.:08:26.

out of work and in-work benefits, correct? We are opposed to the

:08:26.:08:30.

package. If they maintain this huge tax cuts for people earning

:08:30.:08:40.
:08:40.:08:40.

millions of pounds... The tax cut for the very rich. If they maintain

:08:40.:08:44.

that at the same time they are putting in a 1% cap, it is

:08:44.:08:49.

something we will vote against. This is a complicated area. I think

:08:49.:08:54.

the Chancellor committed a huge strategic error first of all in

:08:54.:08:59.

trying to do a divide and rule of the nation, and second of all

:08:59.:09:04.

trying to do a divide and rule between the so-called strivers and

:09:04.:09:12.

shirkers. Even if you take the argument that there are people in

:09:12.:09:17.

receipt of benefit, six out of 10 families affected by this being

:09:17.:09:21.

working families. But the issue of the people who are out of work, I

:09:21.:09:28.

look at the people I come across in my constituency, in my constituency

:09:28.:09:34.

frequently I meet young people in families who have come back from

:09:34.:09:39.

university, graduated from college, and cannot find work at the moment.

:09:39.:09:42.

They are doing a constant stream of work experience placements,

:09:43.:09:49.

internships. And in terms of there being this division, the party of

:09:49.:09:57.

strivers or shirkers. Maintaining this massive tax cut for the top 1%,

:09:57.:10:02.

if there is any division, you have a party of the 1% and a party of

:10:02.:10:08.

99%, everybody else. That is the real division here. What do you say

:10:08.:10:14.

to that? What I was struck by was a couple of things. I was pleased to

:10:14.:10:18.

see Ed Miliband open his account by welcoming the very good employment

:10:18.:10:24.

figures. I think he did it through gritted teeth, but it is good but

:10:24.:10:29.

the opposition can welcome what is clearly good news. It is not

:10:30.:10:36.

through gritted teeth. I have 15 people chasing every job vacancy in

:10:36.:10:43.

my constituency. So when I say these figures are will come, I mean

:10:43.:10:49.

it. We're so used to the negative stuff, it was welcome to hear him

:10:49.:10:55.

welcome that. But you are right, that reflected the big dividing

:10:55.:10:59.

line which will run through to the next general election. It is not

:10:59.:11:04.

just about this specific package. This is now the third successive

:11:04.:11:08.

opportunity that Labour have had to embrace some form of welfare reform,

:11:08.:11:16.

and they are clearly not. Because we don't want to give the top 1% a

:11:16.:11:21.

�107,000 tax cut. That is what you are putting through at the same

:11:21.:11:28.

time. At the same time, that you were implementing these cuts, barer

:11:28.:11:31.

thousands of families who are suffering because of what you were

:11:32.:11:35.

doing, enjoyed giving people early millions of pounds a tax cut in the

:11:35.:11:45.
:11:45.:11:46.

order of �107,000. That is not fair. We can have a ding-dong about that.

:11:46.:11:50.

A think most people watching would be turned off by that exchange, as

:11:50.:11:55.

they are by most of these arguments. What is your message to families in

:11:55.:11:59.

your constituency who will be affected by this, then? The rich

:11:59.:12:03.

are going to be paying a much greater share of the total tax bill

:12:03.:12:07.

than they did in any year when you were in power. That matters to

:12:07.:12:13.

people. And the Prime Minister is also right in that you cannot argue

:12:13.:12:19.

with the fact that we are taking a lot of people out of tax. Our

:12:19.:12:24.

message to working families is we are on your side. We are cutting

:12:24.:12:28.

taxes. We are trying to reduce the cost of living for you. We are

:12:28.:12:33.

busting a gut to try to get the economy going. But we will reform

:12:33.:12:38.

the welfare system because we think the public are above that, because

:12:38.:12:42.

they think it is unsustainable. They don't think it is fair that if

:12:42.:12:47.

people in work are seeing salary increases less than the increase in

:12:47.:12:53.

benefits for people out of work. knew these are complicated, but

:12:53.:12:58.

people care. The �534 average loss that Ed Miliband talked about that

:12:58.:13:02.

is only for one-earner couples. And it does include the latest increase

:13:02.:13:07.

in personal tax allowance. What the Treasury say is, yes, it doesn't

:13:07.:13:15.

include the previously announced increase. That comes in this April.

:13:15.:13:18.

So if you look at the measures that were announced last week, and them

:13:18.:13:28.
:13:28.:13:30.

alone, you get your 500 and and �84 It is the dividing line, and I want

:13:30.:13:37.

to step back and give people a flavour of the argument. You always

:13:37.:13:42.

take the tough argument! Nick is going to stay with us. The Prime

:13:42.:13:47.

Minister has been making a statement about the murder of the

:13:47.:13:52.

Belfast solicitor Pat Finucane in 1989. It was one of the more

:13:52.:13:57.

controversial killings of the Troubles in Northern Ireland.

:13:57.:14:01.

should be in no doubt that this report makes extremely difficult

:14:01.:14:07.

reading. It sets out the extent of collusion in areas such as

:14:07.:14:13.

identifying, targeting and murdering Mr Finucane, supplying a

:14:13.:14:18.

weapon and facilitating its later disappearance, and deliberately

:14:18.:14:22.

obstructing subsequent investigations. The report also

:14:22.:14:26.

answers questions about how high up the collusion went, including the

:14:26.:14:30.

role of ministers at the time. Sir Desmond is satisfied that there was

:14:30.:14:38.

not, and I quote, "and overarching state conspiracy to murder Pat

:14:38.:14:42.

Finucane". But while he rejects conspiracy, he does find, quite

:14:42.:14:48.

frankly, shocking levels of state collusion. Most importantly, Sir

:14:48.:14:52.

Desmond says he is "left in significant doubt as to whether

:14:52.:14:56.

Patrick Finucane would have been murdered by the Ulster Defence

:14:57.:14:59.

Association in February 1989 had it not been for the different strands

:14:59.:15:05.

of involvement by elements of the state". Part of the Prime

:15:05.:15:10.

Minister's statement there on Pat Finucane. Nick, we know from

:15:10.:15:13.

previous inquiries that the state colluded in the murder of this

:15:13.:15:18.

Belfast solicitor. We know it was a murder witnessed by his wife and

:15:19.:15:23.

three children. What have we learned today that we didn't know?

:15:23.:15:27.

I thought that phrase we heard was important, that phrase about

:15:27.:15:30.

significant doubt. What he is saying is that Pat Finucane could

:15:30.:15:34.

have been alive today if it hadn't been for the decision of some in

:15:34.:15:38.

the security services of Northern Ireland to collude in his murder.

:15:38.:15:42.

It wasn't just, that he was going to be murdered anyway and they

:15:42.:15:46.

happened to know about it and didn't blow the whistle. But it

:15:46.:15:50.

appears to be that the statement says he could have survived were it

:15:50.:15:54.

not for a decision of someone within the state, within the

:15:54.:15:59.

security services, to effectively end his life because he was seen as

:15:59.:16:05.

sympathetic to the IRA. That is extraordinarily serious. It is

:16:05.:16:08.

interesting that the Prime Minister wants to draw this distinction

:16:08.:16:13.

between collusion and conspiracy. I think he is trying to defend the

:16:13.:16:16.

upper reaches of politics and the upper reaches of Whitehall and the

:16:16.:16:19.

civil service in Northern Ireland at the time from saying that they

:16:19.:16:25.

sat at a desk, as it were, and said, it is time to eliminate this man.

:16:25.:16:29.

Clearly that is why he is saying no conspiracy. But collusion means

:16:29.:16:37.

that there were people, and not just one or two, who knew, were

:16:37.:16:47.
:16:47.:16:47.

involved in the murder of a man What is the official position that

:16:47.:16:55.

the British state, they knew this man was going to be killed by

:16:55.:17:02.

terrorists, on the other side and did nothing to stop it? Or of the

:17:02.:17:05.

British state worked with terrorists on the other side to

:17:05.:17:15.

help kill him? I used to work at Panorama one are made an award-

:17:15.:17:19.

winning film about Ryan Nelson, double agent, and he was within

:17:19.:17:24.

loyalist terrorism but being run by the security services. In a sense,

:17:24.:17:28.

he not only new the targets that the terrorists were choosing but

:17:28.:17:35.

was involved, I think, in advising her they might want to target so

:17:35.:17:37.

someone at the heart of the organisation was working for the

:17:37.:17:43.

British state. That's how serious it was. It wasn't seriously not

:17:43.:17:48.

bothering. Looking the other way. And the scandal which came out

:17:48.:17:52.

thanks to that programme, and later in more detail, into what Brian

:17:53.:17:58.

Nelson did, is at the heart of this. We now know that clearly does

:17:58.:18:04.

report got further than previous inquiries. The Labour Party back

:18:04.:18:10.

the family in a saying it's not enough, a full inquiry, in which

:18:10.:18:14.

everything is made public is needed force up Tony Blair promised in at

:18:14.:18:18.

2001 if they judge appointed London and Dublin and there was a case to

:18:18.:18:24.

answer, a public inquiry into his death would be held. No public

:18:24.:18:29.

inquiry under Labour was ever held. Why not? We couldn't come to an

:18:29.:18:36.

agreement with the family under the auspices under which the inquiry

:18:36.:18:42.

would take place. By the time we left government, they changed their

:18:42.:18:48.

position and they were trying to bind a framework for an inquiry

:18:48.:18:53.

which would work for the family. What did the Prime Minister say he

:18:53.:18:56.

was going to do as a result of these findings? Has he said is

:18:57.:19:04.

going to be a public inquiry? have also been on air! You have got

:19:04.:19:09.

your iPad telling you. He says the review finds actions by employees

:19:09.:19:14.

of the state actively facilitated the killing, said the Prime

:19:14.:19:19.

Minister. The language is quite careful. He said the review found a

:19:19.:19:22.

relentless effort to refute the ends of justice after the killing

:19:22.:19:27.

and found army officials provided the MoD but highly misleading and

:19:27.:19:32.

inaccurate information. That is deeply shocking. We understand

:19:32.:19:38.

there will be no public inquiry. think the family will be dismayed

:19:38.:19:45.

at that it. If you were just heard that statement. Particularly given

:19:45.:19:52.

the point of that and Nick made. All the family will know is that,

:19:52.:19:58.

were it not for the actions of people involved with the state, he

:19:58.:20:03.

could still be there today. I need a quick reaction from you. We are

:20:03.:20:07.

being told that the Prime Minister's statement is that this

:20:07.:20:12.

to be no public inquiry also why not? We have and listen to the

:20:12.:20:16.

statement now. I have not read the report. -- we have not listen to

:20:16.:20:24.

the statement now. The key thing is the family. Did the Prime Minister

:20:24.:20:32.

apologise? He said, I'm deeply sorry. We should be clear about the

:20:32.:20:36.

distinction. This report which has revealed quite a good deal and has

:20:36.:20:40.

shocked the Prime Minister and many other people, this was about

:20:40.:20:44.

reviewing existing evidence. The call for a public inquiry was that

:20:44.:20:48.

a further evidence could be unearthed and it could be done in

:20:48.:20:51.

public and the family could see for themselves the evidence rather than

:20:51.:20:54.

having to rely on someone they would regard as an agent of the

:20:54.:21:00.

British state to draw a conclusion on the actions. There will be lots

:21:00.:21:04.

more on the BBC News Channel. Thank you for being with us today pull

:21:04.:21:08.

that we need to move on. Now, it has been described as David

:21:08.:21:10.

Cameron's Clause 4 moment. Yesterday, a Conservative Culture

:21:10.:21:13.

Secretary, stood up in the House of Commons and spelt out the

:21:13.:21:16.

government's plans to give gay people the right to marry. We'll be

:21:16.:21:19.

discussing those plans in a moment. But first, here's actor, Simon

:21:19.:21:29.
:21:29.:21:41.

Callow, out on the streets of Soho When I was born in 1949, gay men

:21:41.:21:45.

and women lead secret lives. They lived in fear of arrest and

:21:45.:21:53.

imprisonment. But gay people started to emerge in the Senate

:21:53.:21:58.

Criminal Shadows, the world was changing, and homosexual love which

:21:58.:22:07.

is part of humanity itself, began to become part of normal life. When

:22:07.:22:12.

I was 18, gay people were at last allowed to have sex. Legally. I was

:22:12.:22:22.
:22:22.:22:27.

still illegal at 18 but things were Up to a point, but gay couples were

:22:27.:22:31.

still denied the basic legal provisions which extended not only

:22:31.:22:37.

to married couples but also to common-law spouses. Then came the

:22:37.:22:42.

astonishing breakthrough of civil partnership. A huge leap forward.

:22:42.:22:47.

Marriage in all but name. But, in a very important sense, the name of

:22:47.:22:53.

marriage is what marriage is. A symbolic moment, a big step forward

:22:53.:22:59.

for the relationship. An ideal blessing. This is what many gay

:22:59.:23:09.
:23:09.:23:21.

If David Cameron's big society means anything, it means not just

:23:22.:23:27.

inclusiveness, but mutual respect. And a guarantee of that respect,

:23:27.:23:35.

Should institutions in which we can all participate fully. The Prime

:23:35.:23:38.

Minister has with incredible clarity and boldness expressed

:23:38.:23:42.

himself in favour of gay marriage. There are those in his party who

:23:42.:23:47.

resist this change, as they have resisted every single social change

:23:47.:23:52.

harking back to a golden age, golden for a few perhaps. But the

:23:52.:23:56.

dark ages for money. The poor, women, people from other races,

:23:56.:24:06.
:24:06.:24:09.

-- the dark Ages for many. I deeply love my partner. For better or

:24:09.:24:15.

worse, richer or poorer, in sickness and In Health, till Death

:24:15.:24:21.

do Us Part. The change in the law will set the seal on a love and

:24:21.:24:31.
:24:31.:24:33.

make sure we are fully part of the And Simon Callow is with us now.

:24:33.:24:37.

Welcome to the programme. You said in that film there the Prime

:24:37.:24:39.

Minister had boldly expressed themselves in favour of gay

:24:39.:24:43.

marriage but yesterday afternoon, we got the details of the

:24:43.:24:45.

Government plans which would make it illegal for gay people to marry

:24:45.:24:50.

in the Church of England and Wales. Are you disappointed? It's

:24:50.:24:54.

bewildering. More than disappointed. I don't have the ambition to be

:24:54.:24:58.

married in a church, but there must be many Church of England ministers

:24:58.:25:03.

who are strongly in favour of gay marriage, to marry somebody in a

:25:03.:25:08.

church would be a criminal act is an astonishing if medieval idea.

:25:08.:25:12.

I'm bewildered, frankly. Were you under the impression that the

:25:12.:25:17.

Government's plans would allow you to marry in that church of England?

:25:17.:25:21.

That was the impression given the question up it was carefully

:25:21.:25:26.

unclear. Nobody ever made but absolute commitment and we knew

:25:26.:25:31.

there would be huge pressure from the backbenchers also it is a small

:25:31.:25:36.

symbol of saying, yes, but not absolute equality. Just as a civil

:25:36.:25:40.

partnership said you can get married up to a point, because

:25:40.:25:45.

you're not really like everybody else. There's a thing says the same.

:25:45.:25:49.

To make it clear, the Church we filmed you in yesterday, you would

:25:49.:25:53.

not be able to marry there, even if the clergy supported it? Indeed,

:25:53.:26:03.
:26:03.:26:03.

that's the case. It's a very bizarre thing. What has gone wrong?

:26:03.:26:08.

What I liked about the film was it tell the story of how society's

:26:08.:26:12.

attitude to homosexuals t has changed enormously. I think where

:26:12.:26:18.

we are now is with the Prime Minister who believes passionately

:26:18.:26:24.

in marriage wants to open it up. But not in the Church of England.

:26:24.:26:29.

We want to do something which was possible. You don't think it's

:26:29.:26:33.

possible? We were under the impression that if the clergy in

:26:33.:26:38.

certain churches were in favour, you would be able to marry there?

:26:38.:26:43.

There is a very delicate balance to be strong between a desire to open

:26:43.:26:49.

up marriage to same-sex couples without make made compulsory. There

:26:49.:26:52.

is clear pressure from backbenchers but I would be surprised if there

:26:52.:26:56.

wasn't from the Labour backbenchers, because I don't sense your position

:26:56.:27:03.

on this is on party lines, at all. It is more one faith lines for the

:27:03.:27:06.

you can't underestimate the strength of this feeling.

:27:06.:27:12.

Politicians have got to reflect and respect that. It's the balance.

:27:12.:27:15.

What is Labour's position on this? The Shadow Cabinet will be

:27:15.:27:18.

supporting moving towards gay marriage and we would have liked to

:27:18.:27:23.

have had a situation with churches happy to carry out the ceremonies,

:27:23.:27:28.

being able to do that. There is an issue for the Government and the

:27:28.:27:32.

Church of England. Part of the problem is, it's a bit of yes and

:27:32.:27:39.

No position they have adopted. In some senses, the Prime Minister has

:27:39.:27:44.

a problem. He has a large part of his party who hearken back and seek

:27:44.:27:50.

a Britain we had in the 1950s when we were different. There is a

:27:50.:27:57.

political issue death. There are Labour MPs like this as well.

:27:58.:28:02.

plus women bishops, they are moving to a place where we want to outlaw

:28:02.:28:07.

this. I want to hear Symons response. You said there was a

:28:07.:28:11.

strength of feeling amongst many Conservative backbenchers about gay

:28:11.:28:16.

marriage? We understand many people are frightened it will be

:28:16.:28:21.

compulsory for churches to marry gay people. I personally have no

:28:21.:28:26.

desire for it to be compulsory. This is a protective advice but it

:28:26.:28:33.

seems an extreme one, to me. To introduce the criminal element.

:28:33.:28:37.

afraid it's coming up to 1:00pm. Now, it's time to put you out of

:28:37.:28:41.

your misery and give you the answer to Guess The Year. The return of

:28:41.:28:43.

the Stone of Destiny to Scotland. The unveiling of the Millennium

:28:43.:28:53.
:28:53.:28:58.

Dome. The answer was 1996. Nick She must have known about the Stone

:28:58.:29:01.

of Destiny. OK, that's all for today. Thanks to our guests. The

:29:01.:29:05.

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