25/10/2011 Newsnight


25/10/2011

Similar Content

Browse content similar to 25/10/2011. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

With 24 hours to save the euro, so they say, and therefore the banks

0:00:010:00:06

and therefore the world economy, Europe's fate rests in the hands of

0:00:060:00:11

a former cruise ship crooner. Even if Silvio Berlusconi can sell at

0:00:110:00:15

least some austerity to a hostile coalition and public, can he

0:00:150:00:20

convince the Germans he won't soon hit them for a trillion euro

0:00:200:00:22

bailout? Those close to the talks in

0:00:220:00:25

Brussels have told me a serious deal tomorrow is now impossible,

0:00:250:00:31

and the differences remain immense. Why is it that Europe seems to

0:00:310:00:35

ineffectual with the well being of so many at stake. With a heavy

0:00:350:00:39

heart I will vote for the motion, and I will take the consequences.

0:00:390:00:44

No hard feelings says the Prime Minister, oh and by the way, you're

0:00:440:00:48

sacked, have relations between David Cameron and his eurorebels

0:00:480:00:53

been permanently soured. Is the real reason this Tory MP feels so

0:00:530:00:56

sore about a euroreferendum, that the shots in Government are being

0:00:560:01:02

called by this man's friends and colleagues.

0:01:020:01:09

As East Africa's tribe succumb to yet another famine, is it lack and

0:01:090:01:16

rainfall for lack of ethics that are the cause. God makes famine but

0:01:160:01:22

we stole from ourselves and we are starving as a result. Also tonight.

0:01:220:01:32
0:01:320:01:36

The film director David CCronenberg, on film, fear and fraud. Tomorrow

0:01:360:01:40

was supposed to be the absolute deadline for a deal to save the

0:01:400:01:44

euro, tomorrow's expected meeting for European finance ministers was

0:01:440:01:50

cancelled today, leaving hopes of that deal something of a shambles,

0:01:500:01:55

the heads of Government will still get together, even though tomorrow

0:01:550:01:59

doesn't seem to capture what has seized some of the participants, in

0:01:590:02:03

a crisis that could bring the dreams of the world's political

0:02:030:02:09

class come crashing down. There is still plent of talks to bail out

0:02:090:02:13

banks, and murderings of what that great statesman, Silvio Berlusconi,

0:02:130:02:19

may or may not do to show his Government's grasp of reality.

0:02:190:02:22

That cancellation of the finance ministers' meeting was at first

0:02:220:02:25

briefed as a good thing. Because we were so close to a deal that they

0:02:250:02:29

didn't need to meet. It turns out that was completely rubbish. They

0:02:290:02:35

are not close to a deal. British Government sources believe there

0:02:350:02:44

are too major sticking points. One the shape of the ES Severs, and

0:02:440:02:48

secondly they are nowhere near negotiating about Greece, with the

0:02:480:02:53

banks seeing 60% of their investment written out. The banks

0:02:530:02:56

are saying Government holds this debt when are Governments going to

0:02:560:03:04

take the pain. These are serious issues and we are told to wait.

0:03:040:03:12

This is incredible, the entire European project, it could turn the

0:03:120:03:16

whole world economy and they can't decide to do something? It is only

0:03:160:03:21

over the weekend they got serious about figures and percentages. If

0:03:210:03:26

you step back from all the technical jargon, they are trying

0:03:260:03:30

to take a huge chunk of European capitalism out of the capitalist

0:03:300:03:34

system. They are trying to say a bunch of banks and five out of 17

0:03:340:03:37

countries no longer have their debt valued by the global market. It

0:03:370:03:43

will all be protected within effectively a statised system. Once

0:03:430:03:47

you put it that way, they will say I'm centre right politician and you

0:03:470:03:50

are a Conservative, how did we end up doing this. The drama about to

0:03:500:04:00

play out in Brussels. It will be more than a five-act one let me

0:04:000:04:03

tell you. It is like an action movie, where all the plot lines

0:04:030:04:08

come together in the last five, frantic minutes. There are panicked

0:04:080:04:11

phone calls, knife-edge decisions, and nobody knows what's happening.

0:04:110:04:16

But we do know where it is supposed to end, Brussels, this time

0:04:160:04:21

tomorrow night. The deal they are trying to do is clear, it is to

0:04:210:04:24

take tax-payers' money from northern Europe, and use it to bail

0:04:240:04:28

out southern Europe, to shore up the banks, and to prevent Greece

0:04:280:04:32

collapsing into social chaos. But the political price for this is

0:04:320:04:36

immense. The leaders are only just confronting that.

0:04:360:04:42

Under the deal they are working for, 60% of Greek detect, held by banks

0:04:420:04:46

and - debt, held by banks and pension funds will be written off.

0:04:460:04:52

The banking sector will take a hit of at least 120 billion euros. To

0:04:530:04:59

prevent a wider crisis, 108 billion will be pumped into Europe's banks,

0:04:590:05:05

from private investors and an EU bailout funds and others. A new

0:05:050:05:14

fund, one trillion euro, will be brought in to take Portugal,

0:05:140:05:18

Ireland, Greece and Italy out of the bond market for years. There is

0:05:180:05:22

too much debt in the eurozone, too much public and private debt.

0:05:220:05:26

Ultimately banks will have to go to the wall and fail, and Governments

0:05:260:05:31

will have to write down debt, that is the only solution. This is the

0:05:310:05:35

specter haunting tomorrow's summits, Communists fighting anarchists on

0:05:350:05:41

the streets of at then, amid a general strike. The plan is to

0:05:410:05:44

write off nearly two-thirds of Greek debt. But the banks that will

0:05:440:05:49

take the losses from this troubled country are behind the scenes

0:05:490:05:52

resisting. And if they resist hard enough, it will be the global

0:05:520:05:56

banking system that goes up in flames.

0:05:560:06:00

Today, the French Prime Minister told the assembly it was certain

0:06:000:06:10
0:06:100:06:11

Greece would be rescued to save 60 years of European construction.

0:06:110:06:15

Those close to tonight's talks say it is the French banks conducting a

0:06:150:06:18

rear guard action against the haircut. The biggest problem

0:06:180:06:25

tonight remains the expanded bailout fund, the so-called ESSF,

0:06:250:06:32

the whole thing relies on tricky engineering, and the Germans who

0:06:320:06:38

are paying for it, need to see the Italians implement Austery, and in

0:06:380:06:44

pursuit of that, - austerity, and in pursuit of that, the Italian

0:06:440:06:47

Government has been brought close to collapse. Silvio Berlusconi

0:06:470:06:52

wants to raise the pension age to 67, to prove Italy is worthy of the

0:06:530:06:56

bailout. The northern league's leader, part of the coalition, does

0:06:560:07:06
0:07:060:07:09

not. TRANSLATION: They can't put the pension age up to 67 just to

0:07:090:07:12

please the Germans, the pensions are fine.

0:07:120:07:16

Some doubt any deal could be done with the current Government in Rome.

0:07:160:07:19

No-one trusts the Italians at the moment to get anything through. We

0:07:190:07:23

have reported there are calls that Angela Merkel made to the President

0:07:230:07:27

of Italy asking if there is any chance of Berlusconi leaving and a

0:07:270:07:30

new Government to come in and bring credibility to this. It is a real

0:07:300:07:34

pressing point right now. They want Italy to come to Brussels with

0:07:340:07:39

something, if they don't, the whole question is whether they will be

0:07:390:07:44

able to tap this bailout fund to buy Italian bonds and resell to

0:07:440:07:49

market. Less than 24 hours to go to the summit and so much stuff left

0:07:490:07:54

undecided. The challenge in Brussels is to do a deal that works,

0:07:540:07:58

the ESFS will take Italy out of the bond market for a year in return

0:07:580:08:02

for austerity and Spain. If we take Spain and Italy out of the market

0:08:020:08:05

for a year, at the end of the year we hope they will have regained

0:08:050:08:10

confidence in the markets. That is very unlikely. If they implement

0:08:100:08:16

the austerity measures demanded it will undermine their gross.Th they

0:08:160:08:20

will look worse and the parbgts won't want to buy their debt. If

0:08:200:08:24

they don't put the austerity measures in, the markets will

0:08:240:08:27

assume they are responsible and they won't take the measures

0:08:270:08:33

necessary, and they can't cut it, it is unlikely that Spain and Italy

0:08:330:08:36

will regain market confidence by the end of the year. That is why

0:08:360:08:40

they are taking it to the wire. This is a film with no script

0:08:400:08:46

writer, no directors, and actors who don't know their lines. It is

0:08:460:08:53

careering to a crisis and nobody knows how.

0:08:530:09:01

I'm joined by my guests tonight. Let's go to Rome first. Is the

0:09:010:09:11
0:09:110:09:17

Italian Government likely to agree to put the pension age up to 67?

0:09:170:09:20

party, part of the coalition will agree with that, I hope the other

0:09:200:09:26

party will agree with that. I'm confident we will implement the

0:09:260:09:30

measures in one way or another in the next weeks. You are a member of

0:09:300:09:34

Mr Berlusconi's party, is that Government going to survive, do you

0:09:350:09:43

think? Well, I think it will survive. But, I think that whether

0:09:430:09:48

the Government survives or not, we will implement those measures. By

0:09:490:09:53

the way we have implemented many measures, during the month of

0:09:530:09:57

August we passed several measures, including most of the requests we

0:09:570:10:00

received from the European Central Bank. You must be very grateful to

0:10:010:10:05

the French and Germans, thank heavens for Mrs Merkel and Mr

0:10:050:10:13

Sarkozy, for making you do things you wouldn't otherwise do? Actually

0:10:130:10:20

we would have done those things any way. Because we answer to the

0:10:200:10:26

markets and the Italian people, and we listen, but not answer to the

0:10:260:10:30

leaders of other countries, since we are sovereign states. You are

0:10:300:10:33

confident, are you, that the other countries, notably France and

0:10:330:10:36

Germany, of course, will be sufficiently convinced that you are

0:10:360:10:40

taking this seriously, that some sort of deal tomorrow will be

0:10:400:10:50
0:10:500:10:51

possible? I think they are much more convinced that - than they

0:10:510:10:55

show. The fact is, that currently they are worried with the problem

0:10:550:11:00

of Greece, where France has lots of interests. And the real problem

0:11:000:11:08

currently is that one. So they are trying to draw the attention to put

0:11:080:11:12

the attention on Italy, the problem is Greece and France with lots of

0:11:120:11:17

money in Greece. If they want to save French banks rather than the

0:11:180:11:21

euro, the problem is France and Greece, not Italy. This is always

0:11:210:11:24

the problem, it is always somebody else's fault, isn't it, do you

0:11:240:11:31

think there will be a deal tomorrow? It is not the fact, well,

0:11:310:11:36

I might say the same thing about what they are saying in France, and

0:11:370:11:43

Germany, that they say it is somebody else's fault. It is not

0:11:430:11:49

Italy's fault if French banks have lent Greece 150 billion euros. And

0:11:490:11:54

so you cannot tell me I'm putting the blame on others. We are taking

0:11:540:11:59

our responsibility, but we have no responsibility to the Greek

0:11:590:12:04

problems or the French banks' problems. Thank you very much for

0:12:040:12:09

joining us. We go to Brussels now and talk to a spokesman there. Do

0:12:090:12:12

you think there will be a deal tomorrow? Yes, I think there will

0:12:120:12:18

be a deal tomorrow. I think your presentation of the problem was

0:12:180:12:21

slightly sensationaliseed, and I think we're call working for an

0:12:210:12:31
0:12:310:12:34

agreement tomorrow evening. So you think when President Sarkozy said

0:12:340:12:41

Europe was never so close to exploding today, that was wrong was

0:12:410:12:45

it? That possibility that there could be an explosion does wonders

0:12:450:12:49

to concentrate everybody's minds to reach agreement. May I take you up

0:12:490:12:53

on something you said earlier about the finance ministers' meeting

0:12:530:12:56

being cancelled. There is a simple explanation for. That once it was

0:12:560:12:58

decided that the prime ministers would come to the meeting, there

0:12:580:13:02

was no need for the finance ministers to come to the meetings.

0:13:020:13:05

If you have the heads of Government coming to the meeting, there is no

0:13:050:13:09

longer a need for the finance ministers to come. It is as simple

0:13:090:13:13

as that. Although, of course, that was known some days ago. Let's talk

0:13:130:13:16

about what deal might be reached tomorrow? That was only decided,

0:13:160:13:20

that was actually only decided on Sunday that all 27 heads of

0:13:200:13:25

Government would come to the meeting tomorrow evening. OK. Let's

0:13:250:13:29

not get into nit-picking about. That let's talk about the deal.

0:13:290:13:39

but you presented it as a problem, it is not a problem, it has been

0:13:390:13:42

known since Sunday, it is not something new and dramatic, it is

0:13:420:13:47

quite normal. Will you be telling us, or will we be told, some how,

0:13:470:13:53

the details of the deal? Well, yes, of course, as soon as the deal is

0:13:530:13:57

reached. We wouldn't be having a meeting if there was already a deal

0:13:570:14:01

in place. But everyone knows the three main elements that are being

0:14:010:14:05

negotiated about. One bit has already been effectively more or

0:14:050:14:09

less agreed, that is the package for recapitalisation of banks.

0:14:090:14:13

There is faiing on that is there? There are on going - a figure on

0:14:130:14:18

that is there? There is on going discussions about everything. There

0:14:180:14:23

is a figure of just over 100 million euros, that part of the

0:14:230:14:27

deal is more or less put to bed, everything has to be agreed as part

0:14:270:14:32

of the package. But that bit is pretty well settled. The other two

0:14:320:14:35

elements there are still negotiations. But they are going on,

0:14:350:14:38

and we are quite confident that there will be an agreement tomorrow

0:14:380:14:43

evening. And we will be told, will we, how big the European Financial

0:14:430:14:48

Stability Fund will be? Yes, there are discussion about how to

0:14:480:14:53

leverage the existing fund, whose size is known, in order to increase

0:14:530:14:57

its fire power. There are two models being looked at for how you

0:14:570:15:04

could do that. It could be a combination of both models, if so

0:15:040:15:12

we will have a significant increase in the problem of the ESFS, you

0:15:120:15:18

call it a bailout for loans, for countries who need time to turn the

0:15:180:15:22

corner, they are getting loans, not grants from the tax-payers. That

0:15:220:15:28

will be put in place tomorrow evening. If there is no deal fom

0:15:280:15:33

tomorrow, will it be a disaster? There will be a deal, because

0:15:330:15:35

everybody recognises the importance of reaching a deal tomorrow. This

0:15:350:15:39

is part of a process. There will be technical things to be wrapped up

0:15:390:15:42

afterwards. Just as there are many things put in place already. This

0:15:420:15:48

has been a process, admittedly a step by step process, but that's

0:15:480:15:52

because the union is not a dictatorship, but of democracies.

0:15:520:15:56

They all have to go through their democratic procedures, you have to

0:15:560:15:59

first reach agreement among the elected Governments. They often

0:15:590:16:04

need to get parliamentary approval in their domestic Parliaments for

0:16:040:16:08

these packages. It is inevitably step by step, and some what slower

0:16:080:16:14

than the markets wish who act at the click of a mouse. Democratic

0:16:140:16:19

procedures, even when speedy, do take a bit of time.

0:16:190:16:23

Whether David Cameron feels his position in Europe has been

0:16:230:16:26

strengthened by what happened last night in Parliament is something he

0:16:260:16:30

won't tell us. Of course he won't, but the plain fact is dozens of his

0:16:300:16:34

own MPs snubbed him last night, by calling for a referendum on our

0:16:340:16:38

relations with the EU. It is also as plain on the noses of the faces

0:16:380:16:43

of Prime Minister and deputy, that the two parties in the coalition

0:16:430:16:50

have entirely different ambitions in Europe.

0:16:500:16:53

Yesterday's Government whipping operation did lack a bit of fire

0:16:530:16:57

power. Fitting, perhaps, then, that today the Prime Minister visited

0:16:570:17:00

some heavy weapons at a defence manufacturer.

0:17:000:17:06

His first job is to sort out his political defences.

0:17:060:17:10

The tactic for today seemed to be to try to sooth his troubled

0:17:100:17:17

backbenchers. There is no, on my part, no bad blood, no bitterness,

0:17:170:17:20

these are valued Conservative colleagues, I understand why people

0:17:200:17:24

feel strongly, and we will go forward together and tackle the

0:17:240:17:28

difficult decisions the country faces. What backbenchers seem more

0:17:280:17:31

interested in, is not being soothed, but evidence the Prime Minister is

0:17:310:17:35

going to deliver on what he seemed to promise yesterday. Like you I

0:17:350:17:39

want to see fundamental reform, like you I want to refashion our

0:17:390:17:43

membership of the EU so it better service our nation's interests.

0:17:430:17:47

the weekend, Mr Cameron told us any treaty change the EU needed to make

0:17:470:17:52

would be an opportunity for Britain to insist on reform. Treaty change

0:17:520:17:56

can only happen if it is agreed by all 27 member states of the

0:17:560:18:01

European Union. Any treaty change, as the last treaty change did, is

0:18:010:18:05

an opportunity for Britain to advance our national interest.

0:18:050:18:09

The rebellious mood among David Cameron's backbenchers hasn't

0:18:090:18:13

exactly been improved today. They are now looking for concrete

0:18:130:18:18

evidence that the Government intends to repatriate powers from

0:18:180:18:21

Brussels. But, instead of that, what they see they have got is,

0:18:210:18:28

well, doubt whether it is actually Government policy at all.

0:18:280:18:31

The Conservatives' Liberal Democrat coalition partners certainly aren't

0:18:310:18:33

looking to repatriate powers from Brussels. The deputy Prime Minister

0:18:330:18:37

today was looking at some virtual reality technology. He says it is

0:18:370:18:42

the Conservatives who need to get real. Unless you have got a strong

0:18:420:18:47

prosperous eurozone, you can't have a strong prosperous United Kingdom.

0:18:470:18:51

That is why this Government is not going to launch some smash 'n grab

0:18:510:18:55

raid on Brussels on its own, which would never work, it would be

0:18:550:18:59

condemned to failure any way. Holloway voted against the

0:18:590:19:01

Government yesterday, and in the process lost his junior Government

0:19:010:19:06

position. He knows what he wants David Cameron to deliver now.

0:19:060:19:11

very clear statement of the sort of powers that we would like to

0:19:110:19:16

repatriate, and some sort of time frame. But that time frame may well

0:19:160:19:19

be outside the time that we are in a coalition. We may be looking at

0:19:190:19:23

when the Tories next to come to power. I think some sort of road

0:19:230:19:27

map, if you like for that, for the future, would be very, very helpful,

0:19:270:19:31

especially if you are talking about party management. It is that phrase

0:19:310:19:35

"party management", that you hear time and time again. David

0:19:350:19:39

Cameron's style is not necessarily appreciated by all of his

0:19:390:19:41

backbenchers. In a sense all prime ministers have this complaint

0:19:410:19:46

levelled against them. Not all MPs have a leader who, shall we say,

0:19:460:19:50

shares their own view, of their own ability. But are there some other

0:19:500:19:55

reasons that David Cameron has lost the loyalty of some?'S Upset some

0:19:550:20:01

MPs over expenses, by taking a very draconian stance. He upset lots of

0:20:010:20:06

candidates by having an A-list, where he had certain candidates

0:20:060:20:10

that are preferred with the plum seats. A lot of candidates selected

0:20:100:20:15

were never on the A-list. They feel they became MPs despite David

0:20:150:20:19

Cameron, not because of him. Other MPs were kept quiet during the time

0:20:190:20:21

he was changing the Conservative Party's electoral strategy. He said

0:20:210:20:24

we must change to win. And of course, in the end, the

0:20:240:20:28

Conservative Party didn't win. Party management isn't helped by

0:20:280:20:32

the fact that David Cameron has to give coveted Government jobs to

0:20:320:20:35

Liberal Democrats. But, according to one of last night's rebels,

0:20:350:20:41

there are still some things he can do. Appointments must be made on

0:20:410:20:44

merit, because people can accept they are not a minister if they

0:20:440:20:48

think the people are ministers are there for the right reasons. Whilst

0:20:480:20:52

I fully support having a third of ministers to be female, that is

0:20:520:20:55

fine, as long as all those appointments are made on merit.

0:20:550:20:59

That is the first point. The second one, of course, is there is a

0:20:590:21:03

feeling that when people sort of cross the party, there is no way

0:21:030:21:08

back. I think it is important for a few people who have fallen by the

0:21:080:21:13

way side to be brought back into the fold. I would say both those

0:21:130:21:17

things, not being female, and having just lost my position in the

0:21:170:21:22

Government, such as it was. Obviously issues don't come any

0:21:220:21:25

more explosive for the Conservative Party than Europe, but there are

0:21:250:21:29

other potential rebellions in the air. In fact, we don't have to look

0:21:290:21:33

any further into the future than Monday, then the issue that might

0:21:330:21:38

trigger it is knife crime. If only there were levers he could

0:21:380:21:42

pull to make his party behave, but David Cameron knows he is, in the

0:21:420:21:46

future, going to have to choose his battles, if he wants his MPs to

0:21:460:21:50

follow orders. With us now is the Conservative MP,

0:21:500:21:54

Jacob Rees-Mogg, one of the 2010 intake who rebelled yesterday. We

0:21:540:21:59

are joined by former Liberal Democrat leader, Charles Kennedy.

0:21:590:22:03

When David Cameron talks about bringing back powers from Brussels,

0:22:030:22:08

is he talking as party leader or leader of the Government? He's both.

0:22:080:22:12

You understand him to be talking about Government policy. He's

0:22:120:22:14

talking as the Conservative Party leader and Prime Minister. But he

0:22:140:22:20

leads a coalition, and he has to carry the coalition with him.

0:22:200:22:24

Ultimately, if the Lib Dems really want to hand powers back to Europe

0:22:240:22:29

rather than keem them in Britain, they can walk - keep them in

0:22:290:22:34

Britain, they can walk out and have another election. Number Ten said

0:22:340:22:38

he wasn't speaking as leader of the Government but as leader of the

0:22:380:22:42

party, you are saying it is a distinction that can't be made?

0:22:420:22:49

can't make of the Prime Minister, he is Prime Minister and leader of

0:22:490:22:55

the country, the two are closely linked because is leader of the

0:22:550:22:58

Conservative Party. What do you think? As Prime Minister you are

0:22:580:23:01

head of the Government. The subsequent clarification that came

0:23:010:23:05

from Number Ten that you referred to, a little later, after his

0:23:050:23:09

remarks this morning, point to the difficulty that is now taking place

0:23:090:23:13

for the Conservatives. You know, last night's debate, it was

0:23:130:23:17

actually a very good debate in many ways. But what it revealed was not

0:23:170:23:22

so much about the fault lines in terms of Europe and European policy,

0:23:220:23:26

it was the continuing fault lines that have been there for the 25

0:23:260:23:29

years plus that I have been in the Commons now, within the

0:23:290:23:31

Conservative Party. I'm afraid other parties can't solve that

0:23:310:23:39

party for them. He spoke as leader of a Government which includes your

0:23:390:23:43

party? Yes, and you also fairly paid the clip of Nick Clegg

0:23:430:23:46

responding to those remarks a little later on in the course of

0:23:460:23:52

the morning. Making quite clear where we stood on this. I don't

0:23:520:23:55

know what Jacob is referring to about us wanting to hand more

0:23:550:24:01

powers to Europe, we have not said anything to that effect. I'm not

0:24:010:24:04

clear about what are the powers the Conservatives want to, or think

0:24:040:24:10

they can, or how they are going to go about achieving the repatriation

0:24:100:24:13

from Europe. Do you blame the Liberal Democrats for this mess?

0:24:130:24:16

think the Liberal Democrats are wonderful, loyal people, who who

0:24:160:24:21

have taken a serious decision, that is destroying them electorally, to

0:24:210:24:28

back a Conservative Government to solve an economic crisis we face.

0:24:280:24:37

On Europe they have always talked nonsense. That is theesprit decore

0:24:370:24:45

we have in this coalition and face! Jacob is entitled to his opinions,

0:24:450:24:50

he's a chip off all the distinguished block, I greatly

0:24:500:24:54

reveer his dad, but time has moved on. What is needed is a rational

0:24:540:25:00

debate about Europe. It is an issue, you have a gradeation of opinion

0:25:000:25:05

air strikes cross each of the political parties. None are so deep

0:25:050:25:08

and irreconcilable as they appear to be within the Conservative Party.

0:25:080:25:11

That is, at the end of the day, an issue that they will have to

0:25:110:25:21
0:25:210:25:25

resolve. Can you be reconciled in the Conservative Party?

0:25:250:25:33

Conservative Party is united in Europe, but there was strong Euro-

0:25:330:25:37

sceptic statements from the Prime Minister and the Foreign Secretary,

0:25:370:25:39

it is the coalition divided on Europe, not the Conservative Party.

0:25:390:25:42

That is important. Clearly you are deeply worried. When you were

0:25:420:25:47

speaking last night, you talked about, you invoked the spirit of

0:25:470:25:54

henry V, stiffen the sinews. Summon up the blood. Be like a tiger. As

0:25:540:26:01

opposed to being like Bagpuss. is absolutely right. Who is Bagpuss

0:26:010:26:06

in this rhetorical flight? Thank you for listening to the speech so

0:26:060:26:11

carefully. Who is Bagpuss? What the Prime Minister needs is to be able

0:26:110:26:15

to say to Lib Dem partners and in Brussels, that I have to get powers

0:26:150:26:19

back because my backbenchers want it. So David Cameron is Bagpuss?

0:26:190:26:22

Certainly not. We strengthen the Prime Minister's position and help

0:26:220:26:26

him to have the courage of a tiger when he's negotiating with the Lib

0:26:260:26:30

Dems. Otherwise left to his own devices he would be Bagpuss? No the

0:26:300:26:36

Lib Dems are closer to Bagpuss than the Prime Minister. There you are,

0:26:360:26:40

Charles Kennedy Cat On A Hot Tin Roof. We should end the metaphor or

0:26:400:26:43

we will end up like Theresa May at the Tory Party conference. I think

0:26:430:26:48

the point is this. I was our European spokesman all the moons

0:26:480:26:51

ago when Maastricht Treaty was going through. I argued for a

0:26:510:26:55

referendum at that time, and voted for a referendum en mass trict. We

0:26:550:27:01

take the view, as we said in the last manifesto, if you have got a -

0:27:010:27:07

on Maastricht, we take the view, as we said in the last manifesto, if

0:27:070:27:13

you have got a view and it is about to go forward, you should put that

0:27:130:27:17

to the people. The problem Jacob and his colleagues have got is we

0:27:170:27:21

had this great debate last night, very entertaining stuff, not least

0:27:210:27:25

Bagpuss, the fact of the matter is, those, there are some that want to

0:27:250:27:29

withdraw, the Conservatives, there are some who want to stay in and

0:27:290:27:33

reform, and that's not quite clear that what that means. There are

0:27:330:27:38

some talking about repatriation and a European free trade zone in which

0:27:380:27:43

the UK a member. For Jacob to try to pretend that is a united

0:27:430:27:46

Conservative position is hog wash. That is a fair point isn't it?

0:27:460:27:50

is wrong, the Prime Minister said that every treaty requires

0:27:500:27:54

unanimity and is an opportunity to renegotiate. That is what the

0:27:540:27:58

Conservative Party wants. We are completely united on that. What he

0:27:580:28:00

said had the support of the overwhelming majority of the party.

0:28:000:28:04

We voted to strengthen his arm in negotiations.

0:28:040:28:07

In case he becomes Bagpuss? wouldn't dream of doing such a

0:28:070:28:11

thing. Thank you very much. Now to the second in our series of

0:28:110:28:19

films to mark the birthday, some time in the next few days, of the

0:28:190:28:29

seven billionth person on this planet for some time.

0:28:290:28:34

Fergal Keane has been to one of the worst affected areas in Africa, in

0:28:340:28:43

the remote north of the country and found a crisis compounded by

0:28:430:28:52

decades of corruption Turkana. The burning air yields nothing.

0:28:520:28:59

Too many seasons without rain have turned the ground to dust.

0:28:590:29:03

Like so much of the rest of the Horn of Africa, the lands of the

0:29:030:29:12

Turkana are in the grip of drought. They are nomadic past tollalists,

0:29:120:29:17

who rely on the - Pastoralists who rely on the rain for their lands.

0:29:170:29:23

Now they come seeking relief. This emergency feeding centre is

0:29:230:29:30

providing rations for malnourished children. The animals on which

0:29:300:29:37

these people depended for a living have died. A tribe which is among

0:29:380:29:41

the most resilient and self- sufficient in the world, is reduced

0:29:410:29:46

to kpwueing for food. All morning people - reduced to queuing for

0:29:460:29:49

food. All morning people have continued to arrive, as news

0:29:490:29:53

spreads that food and medical help is available. If you require that

0:29:530:29:58

this is just one village out of hundreds, across this region. You

0:29:580:30:04

get a sense of the magnitude of this drought. How many droughts

0:30:040:30:12

have you seen in your life? Ten droughts.

0:30:120:30:21

Is this as bad as the other ones or worse? TRANSLATION: He says this is

0:30:210:30:27

worst of all. There are still food shortages,

0:30:270:30:32

despite the donation of a huge amount of international aid. What

0:30:320:30:39

are the problems with the children here? Malnutrition. That's the main

0:30:400:30:46

problem? Yeah, malnutrition. I have set out to discover why

0:30:460:30:50

there is no food security in a country that has received billions

0:30:500:30:56

in international aid over decades. Drought caused by climate change is

0:30:560:31:01

certainly a major problem. And the fact that Kenya hosts more than

0:31:010:31:08

half a million starving refugees from Somalia. But Kenya's crisis

0:31:080:31:15

has other, murkier roots. God makes droughts, men make familiar anyones,

0:31:150:31:21

and we stole from - famines, we stole from ourselves and we are

0:31:210:31:24

starving as a result. Across East Africa, the brunt of

0:31:240:31:31

the food crisis is being borne by Pastoralist communities like these,

0:31:310:31:37

there have been some Government- sponsored projects but the

0:31:370:31:42

overwhelming sense is of neglect. The infrastructure here is meagre

0:31:420:31:50

and much of it crumbling. Joseph sells water to his foal low

0:31:500:31:54

villagers, that he draws from this hole in the bed of a dried out

0:31:540:32:00

river. TRANSLATION: We feel rejected by

0:32:000:32:04

the Government. I don't understand why they don't help. Why they don't

0:32:040:32:08

provide any saistance. The Government has a lot of funds -

0:32:080:32:11

assistance, the Government has a lot of funds but none of it

0:32:110:32:16

trickles down here. The Kenyan's Government official line is to

0:32:160:32:22

blame the drought for this crisis. The international community and the

0:32:220:32:28

Kenyan Government have now mounted a massive relief operation. A

0:32:280:32:34

record �72 million was donated in Britain to help feed the starving.

0:32:340:32:38

What's unfolding here isn't simply the consequence of drought. Kenya's

0:32:380:32:44

food crisis is, above all, a crisis of governance. You simply can't

0:32:440:32:48

separate the imagery of hunger from the corruption and neglect that has

0:32:480:32:52

characterised the rule of Kenya's political elite.

0:32:520:32:57

It is all grimly familiar to the man who was once Kenya's anti-

0:32:570:33:01

corruption chief, and who now helps the UK Government monitor how its

0:33:010:33:06

aid is spent. How much of an imfact did corruption have on the hunger

0:33:060:33:10

crisis - impact did corruption have on the hunger crisis in this

0:33:100:33:14

country now? The drought we have in Kenya is a Government drought, it

0:33:140:33:17

is a corruption drought. It is what has turned the drought into a

0:33:170:33:25

familiar anyone. - Famine. Two years ago Kenya knew

0:33:250:33:30

it was facing a severe drought, but it emerged that officials sold much

0:33:300:33:35

of the country's grain to middle men for subsidised prices, the

0:33:350:33:41

middle men sold to the market at he can sorbant rates. Who were the -

0:33:410:33:46

exsorbant rates. Who were the people? People connected to

0:33:460:33:50

politicians. That is people profiteering out of famine?

0:33:500:33:57

Absolutely it is the coldest most merciless kind of corruption. This

0:33:570:34:05

time people are dying now. Nairobi, headquarters of the

0:34:050:34:09

Government and the courts, authors of the scandal have gone unpunished

0:34:090:34:13

by the law, like so many before them. An estimated one third of the

0:34:130:34:19

country's budget may vanish to corruption every year.

0:34:190:34:23

Food aid, in this case, from Saudi Arabia, is being used to make up

0:34:240:34:30

the shortfall in Kenya's supplies. When I met the minister responsible

0:34:300:34:34

for the relief effort, she was remarkably candid about what

0:34:340:34:42

corruption has done to her country. I think it has ruined us, because

0:34:420:34:47

if a son sees his father stealing and he gets away with it, he thinks

0:34:470:34:53

it is the way to do things. Until we prosecute and say no to impunity,

0:34:530:34:57

then there remains the problem. doesn't matter how high up the

0:34:570:35:03

chain it goes? In fact, the higher you reach the better the message

0:35:030:35:07

would be received better. Because occasionally, and what the cry of

0:35:070:35:17

the Kenyans has been, is that the courts start targeting the small

0:35:170:35:21

fish not the big fish, if we targeted the big fish the message

0:35:210:35:24

would be loud and clear. Some of your Government colleagues might be

0:35:240:35:28

nervous hearing you say that, and might not be too happy with that?

0:35:280:35:32

If you are corrupt you don't have to be happy. There are those in the

0:35:320:35:37

Government who believe it when they say that. But then they are not the

0:35:370:35:41

ones that wield the vital levers of power in the Government. You have

0:35:410:35:44

to keep in mind this is a coalition Government, we don't have an

0:35:440:35:49

opposition in Kenya, really, it is a mixture of everyone. With a fair

0:35:490:35:56

sprinkling of crooks in high places? Absolutely, with a fair

0:35:560:36:00

sprinkling of hardened thieves in high places. International donors

0:36:000:36:05

increasingly seek to deal with the dilemma of corruption, by bypassing

0:36:050:36:11

the state. Here British aid is being used to try to stimulate

0:36:110:36:17

local markets, moving people from Pastoralism to the cash economy.

0:36:170:36:21

21 century technology is harnessed in the remotist of places. These

0:36:210:36:26

women run small shops, with grants they receive from Oxfam. Money that

0:36:260:36:33

goes directly from donors in Britain to local people. They cue

0:36:330:36:38

with their smart cards, but instead of a pin to get the cash, they give

0:36:380:36:45

a thumb print. This woman supports six children from a small shop.

0:36:450:36:50

Tran All my animals died, - TRANSLATION: All my animals died, I

0:36:500:36:53

was forced to beg for food, this opportunity helped me open up a

0:36:530:36:57

business, now I can afford to feed my family.

0:36:570:37:02

A way of life dependant on regular rain to provide grazing is

0:37:020:37:12
0:37:120:37:14

threatened, perhaps terminally. Hire on the shores of Lake Turkana,

0:37:140:37:17

an EU scheme is encouraging Pastoralists to turn to fishing to

0:37:170:37:26

eek out a living. This man lost a huge flock of

0:37:260:37:31

animals, among them, 200 goats. For him, the Government has always been

0:37:310:37:37

far away. TRANSLATION: There is a small amount of aid from the

0:37:370:37:42

Government, but I haven't had any help. Some get the food, others

0:37:420:37:51

live without. It says much about the scale of the crisis facing the

0:37:510:37:56

Pastoralists of Turkana, that a people who used not even eat fish,

0:37:560:37:59

whose sense of themselves was built about roaming the land with their

0:37:590:38:03

livestock, should now find themselves here as part of a

0:38:030:38:05

community of fishermen. The big issue isn't that many more

0:38:050:38:08

thousands will have to change their way of life, it is whether they can

0:38:080:38:15

survive at all in this part of Africa.

0:38:150:38:20

Aid that goes directly to communities can change lives. But

0:38:200:38:26

the forces ranged against these people are daunting. Climate change,

0:38:260:38:34

rising food prices, corruption. How important is it to end the culture

0:38:340:38:39

of immunity that has allowed people at the very - impunity that has

0:38:390:38:42

allowed people at the very stop from looting the people? If we

0:38:420:38:46

don't solve that I can see the crisis year in year out for the

0:38:460:38:51

next 20 years, I don't know. The world can pour any amount of

0:38:520:38:57

food aid into Kenya, the NGOs can work to mitigate the effects of

0:38:570:39:02

drought, but the central truth of the story of the Turkana, is that

0:39:020:39:08

hunger is ultimately a matter of politics.

0:39:080:39:12

It used to be the case that if we wanted to be shocked by violent

0:39:120:39:17

graphic video we would have to pay our money and take our seat for the

0:39:170:39:20

latest horror movie at the local picture house. How deliberate and

0:39:200:39:23

planned that now seems when contrasted to the images that went

0:39:230:39:27

round the world within minutes of Gaddafi first being beaten, and

0:39:270:39:34

then a decaying corpse on display in a meat store. We will discuss

0:39:340:39:39

these images tomorrow with film maker David Cronenberg, who

0:39:390:39:42

collects an award from the British Film Institute tomorrow. Cronenberg

0:39:420:39:47

has been famous throughout his career for makes films exploring

0:39:470:39:52

dystopian visions of the future, the impact of technology on the

0:39:520:39:58

human experience, deviant behaviour, sub conscious desires and extreme

0:39:580:40:05

perversions. His 1996 film, Crash, shocked viewers and critics alike,

0:40:050:40:14

by exploring the sexual thrill of the car accident. She's a walking

0:40:140:40:19

advertisment...His Latest film, A Dangerous Method, gets to the root

0:40:190:40:23

of the preoccupations, by looking at the creator of the idea of the

0:40:230:40:29

sub conscious, fraud, and his relationship with Carl Yung. There

0:40:290:40:35

is a rumour running around veeyenya now you have taken one of your

0:40:350:40:39

patients as a mistress. Cronenberg's capacity for violence,

0:40:390:40:49
0:40:490:40:54

and the power of the shock, has empowered cinema of our time. Put

0:40:540:40:59

images on Korean that horrify, has risen again when pictures of a

0:40:590:41:05

bloodied Gaddafi was sent around the world on mobile phones within

0:41:050:41:09

minutes. What is the reaction to exposure of these images, are we

0:41:090:41:12

becoming unshockable, if so, does it matter.

0:41:120:41:16

David Cronenberg is here now, what did you think when you saw those

0:41:160:41:20

images of Gaddafi? What surprised me was a Gaddafi, who was never a

0:41:200:41:25

favourite of mine, I was suddenly feeling quite sorry for him, I felt

0:41:250:41:29

huge empathy, and it was quite striking to me that I felt that way.

0:41:290:41:33

It surprised me. I think it is because at that moment he had been

0:41:330:41:39

striped of all context and he was a human being who was suffering and

0:41:390:41:43

being assaulted. Do you think that the instant availability of that

0:41:430:41:48

sort of footage, and it is now available, we didn't show most of

0:41:480:41:52

it there, it is pretty horrific, do you think it affects us, how does

0:41:520:41:58

it affect us? As I say, you can make a case for it enhancing our

0:41:580:42:02

sense of empathy for people. It is easy to say we're being

0:42:020:42:05

desensitised because we see a lot of it. I don't really think that is

0:42:050:42:08

the function, that is something that has been mentioned to me,

0:42:080:42:13

because my earlier films were all horror films. People say do your

0:42:130:42:17

films desensitise people, I think not. I think people really

0:42:170:42:22

understand there is a kifrpbs when you are seeing a fictional -

0:42:220:42:32
0:42:320:42:32

difference when you see a fictional content. Yes, but that is not it?

0:42:320:42:35

It draws a completely different reaction from us. I remember

0:42:360:42:41

looking up on the Internet and watching a beheading, and I wish I

0:42:410:42:44

hadn't seen it. It was so disturbing. Why did you do it?

0:42:450:42:49

felt I needed to confront the reality of what was going on.

0:42:490:42:53

you didn't need to? What really disturbed me about it is the

0:42:530:42:58

perpetrators about the beheading were incredibly self-righteous,

0:42:580:43:03

they felt they were doing a wonderful sacred holy thing, but on

0:43:030:43:07

the human level it was absolutely hidious. You were drawn to it?

0:43:070:43:13

I actually had to compel myself to watch it, almost feeling that I

0:43:130:43:17

needed to confront what was going on in the world at the time. I have

0:43:170:43:20

never watched another one. Why did you feel that you needed to

0:43:210:43:29

confront it? Because you read about it, but no written description can

0:43:290:43:33

really deliver to you the full texture of it. Did you know exactly

0:43:330:43:38

what happens just from the word "beheading", you know what happens

0:43:380:43:43

when someone is beheaded? You don't. Their head is cut off and they are

0:43:430:43:47

dead, it is a horrible thing to do to someone? When you think of the

0:43:470:43:51

Guillotin, and you think you have seen it in movies, you have never

0:43:510:43:55

seen it, because there was no film at the time of the French

0:43:550:44:01

Revolution. The Guillotin comes down and the head comes off. But no,

0:44:010:44:07

this beheading took ages, it took half an hour, it was agonising, it

0:44:070:44:10

wasn't even like a slaughterhouse, which is much more efficient, it

0:44:100:44:16

was a ritual, full of self- righteousness. And to that extent

0:44:160:44:21

I'm glad I saw it. What does it make you do, it really makes you

0:44:210:44:26

hate the people who perpetrated it. Why have you been drawn to

0:44:260:44:32

fictional violence in your films? don't think that I have been drawn

0:44:320:44:42
0:44:420:44:44

to it more than verbal violence, let's say, my latest movie The Most

0:44:440:44:48

Dangerous Method, which is not about violence, it is about the

0:44:480:44:54

birth of psycho analysis. Certainly those things are connected, but as

0:44:540:44:58

George Bernard Shaw said, conflict is the essence of drama, it doesn't

0:44:580:45:04

always have to be physical conflict, but if you are a dramaist, you are

0:45:040:45:10

drawn to conflict, as part of your art. Movies, controversially Crash,

0:45:100:45:15

of course, these are movies about extreme human behaviour? Yes.

0:45:150:45:22

is it interesting? Freud was attacked because of his insistence

0:45:220:45:29

on the reality of the possibility of creatures from the Id, monsters

0:45:290:45:34

of violence. When he he was proposing the unconscious, it was

0:45:340:45:39

at a time when everybody felt man was evolving into a wonderful

0:45:390:45:42

supercivilised controlled thing. this because you are anxious about

0:45:420:45:47

the human potentialality for that sort of behaviour? Well, seeing

0:45:470:45:51

things like the Gaddafi thing can make you anxious. You would be

0:45:510:45:57

strange if it didn't. It is not so much anxiety as curiosity, really,

0:45:570:46:03

or a desire to know. It is an artist and a psycho analyst, they

0:46:030:46:11

do the same thing, they don't accept the official version of

0:46:110:46:14

reality, they want to dive under and see what is going on. Some of

0:46:140:46:19

it is dark, some of it is not just dark but unusual and curious and

0:46:190:46:23

Download Subtitles

SRT

ASS