31/10/2011 Newsnight


31/10/2011

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Are we in a lot more Hubble, bubble, toil and trouble on the deficit

:00:08.:00:12.

than the Government is letting on? New research commissioned by

:00:12.:00:17.

Newsnight warns that on the budget deficit something wicked this way

:00:17.:00:20.

comes. Low growth may force the Chancellor to push back his target,

:00:20.:00:25.

but the real frightener comes if the global situation turns bad and

:00:25.:00:30.

we get a dark decade. 100 leading economic thinkers say

:00:30.:00:36.

it is time for plan B. Britain's best known capitalist venturer begs

:00:36.:00:39.

to differ with one of them. The Greek, just when you thought

:00:39.:00:44.

the eurozone had locked down a deal, the Government and Athens has

:00:44.:00:47.

called a referendum on that European bailout.

:00:47.:00:52.

Outside St Paul's they are dancing, inside the clerics are busy arguing

:00:52.:00:57.

and quitting. Should Christian values on money lenders and temples

:00:57.:01:03.

be a no-brainer. She is unmistakable with her Faroe islands

:01:03.:01:09.

sweater and Nicorette gum, we speak to the star of The Killing. This

:01:09.:01:14.

role has challenged my own views of what is feminine and what is

:01:14.:01:18.

masculine: it has liberated a lot of my own fixed thoughts about

:01:18.:01:21.

which is which. Today there are a few machines to

:01:21.:01:25.

be cheerful as well, evolutionary psychologist, Steven Pinker, thinks

:01:25.:01:35.
:01:35.:01:38.

the world is a less violent place, Good evening, the Government

:01:38.:01:41.

engaged in a flurry of activity today, Nick Clegg committed almost

:01:41.:01:46.

a billion pounds to industry, and trumpeted the possibility of

:01:46.:01:50.

200,000 new jobs. David Cameron penned an article in the FT warning

:01:50.:01:55.

us against pessimism and the danger of talking down our achievements.

:01:55.:01:59.

The quarterly growth figures coming out tomorrow is no coincidence. The

:01:59.:02:02.

consensus forecast is the figures are going to be poor. Is there

:02:02.:02:05.

anything the Government can do to get the economy moving.

:02:05.:02:12.

Here is our economics editor, Paul Mason. It is fright night for

:02:12.:02:16.

economists. Right now Government statisticians are getting ready to

:02:16.:02:20.

produce the growth figures for July/September, they could be

:02:20.:02:25.

scarely close to zero. Cue the deputy Prime Minister, to

:02:25.:02:29.

tell us what they are going to do about it. The Government today

:02:29.:02:34.

announced nearly a billion pounds worth of state aid to businesses,

:02:34.:02:39.

including to this once spuorned steel works in Sheffield. Let's not

:02:40.:02:44.

talk Britain down, these are competing industries, it is good

:02:44.:02:48.

the Government gets behind things that work, so we can create jobs

:02:48.:02:51.

for the young people of the future here and elsewhere. The opposition,

:02:51.:02:58.

sharpening the dagger for tomorrow, if the stats are bad, got a dig in

:02:58.:03:01.

first. The Government hasn't understood the scale of the

:03:01.:03:04.

problems the economy is facing and are not coming up with the measure

:03:04.:03:07.

that will make the real difference to people losing their jobs or in

:03:07.:03:10.

fear for their jobs and living standards. Once we get tomorrow's

:03:10.:03:14.

figures, the debate begins in ernest about how to turn things

:03:14.:03:18.

around. The problem s if you get lower growth, that drives a bit of

:03:18.:03:23.

a stake true the heart of the deficit reduction plan. If you go

:03:23.:03:27.

for tax cuts on top of that, the hole gets bigger. On the deficit,

:03:27.:03:33.

the Chancellor has set his own target. The structure deficit to be

:03:33.:03:39.

eradicated by 2014, debt to be falling as a percentage of GDP by

:03:39.:03:44.

2015/16. We asked the respected research firm, CEBR, to model the

:03:44.:03:49.

impact of low growth on the public finances. They use a similar model

:03:49.:03:55.

to the Treasury, but their results would not be popular there. This is

:03:55.:04:01.

what the Government thought would happen, debt peaks in 2013, the so-

:04:01.:04:03.

called structural deficit is eliminated in 2014, and the

:04:03.:04:09.

percentage of debt is falling in 2015/16. These last two points meet

:04:09.:04:13.

George Osborne's self-imposed target. But low growth this year

:04:13.:04:18.

begins to knock all that for six. If growth is just 0.9% a year,

:04:18.:04:22.

instead of the 1.7% they expected, this is what happens to debt. It

:04:22.:04:26.

ends up higher and the structural deficit is eradicated, if you are

:04:27.:04:32.

lucky, a year later. What lower growth does is it makes it very

:04:32.:04:36.

much more difficult to get in the tax revenues to bring the deficit

:04:36.:04:40.

down. If you don't bring the deficit down, then the debt GDP

:04:40.:04:43.

ratio, the thing which the foreign exchange markets and the other

:04:43.:04:48.

financial markets look at, keeps on rising. You but what then? If you

:04:48.:04:53.

add in tax cuts to low growth. We modelled an �8 billion tax cut next

:04:53.:05:00.

year, and �4 billion in 2013, debt ends up 5% GDP higher than planned,

:05:00.:05:07.

that is �85 billion, but the Chancellor could, just, meet his

:05:08.:05:11.

self-imposed target then. Our researchers don't believe we will

:05:11.:05:14.

have low growth just this year, but next year and the year after that.

:05:14.:05:19.

In that case there is a big hit. you add low growth to �12 billion

:05:19.:05:24.

tax cuts, our figures show the deficit to be still over �100

:05:24.:05:29.

billion, by the end of this parliament. It shows the ratio of

:05:29.:05:37.

debt to GDP still going on up, past 0%. Right now, the Treasury are

:05:37.:05:41.

burning the midnight pumpkin, trying to come up with radical new

:05:41.:05:45.

growth plan. Changes in employment law, a bonfire of planning

:05:45.:05:52.

regulations, but few think it can be done without tax cuts. What is

:05:52.:05:57.

shaken our growth is our uncompetitive tax and regulatory

:05:57.:06:01.

regimes. Looking at the World Economic Forum, we had the fourth

:06:01.:06:07.

most competitive tax regime in the world in 200, now we have the 94th

:06:07.:06:11.

most competitive tax regime in the world. There is something wrong in

:06:11.:06:14.

the figures. The Government should reduce taxes wherever possible to

:06:14.:06:17.

stimulate growth, while finding further savings in expenditure

:06:17.:06:20.

elsewhere. Those in contact with George Osborne's team, which low

:06:20.:06:24.

growth may force the Chancellor to push back his target by a year, or

:06:24.:06:28.

two. But the real frightener comes if

:06:28.:06:32.

the global situation turns dark and stays dark. Then we get a very

:06:32.:06:39.

scary decade. That's enough to frighten even the stoutist

:06:39.:06:45.

Chancellor. Joining me now are British venture capitalist, Jon

:06:45.:06:48.

Moulton, a member of the advisory board of Nick Clegg's Regional

:06:48.:06:53.

Growth Fun, and the former Labour minister, Kitty Ussher. Do you

:06:53.:07:00.

agree with that analysis that on the basis of a 0.% growth George

:07:00.:07:06.

Osborne has to put back the target. - 0.9% growth Osbourne has to put

:07:06.:07:14.

back his targets. If you have 0.9% growth the graphs just keep going

:07:14.:07:18.

back. The pictures there only predict one year. Last year in the

:07:18.:07:23.

budget the Chancellor bet for 3% growth for five consecutive years,

:07:23.:07:27.

we were never going to get it and we are not going to get it. Kitty

:07:27.:07:33.

Ussher, if growth sticks at 0.9% this year, and doesn't get higher

:07:33.:07:37.

than 1.7%, which was the original, does that mean the debt isn't

:07:37.:07:41.

eradicated? He has given himself a year's wriggle room, by giving a

:07:41.:07:45.

five-year target to be achieved in four years. That is reasonable?

:07:45.:07:50.

so it won't be a political disaster for him immediately. People will

:07:50.:07:54.

realise he's running out of options. If the situation carries on for a

:07:54.:07:58.

year or so, which is perfectly possible. He has a serious problem.

:07:58.:08:06.

You are involved in the regional growth fund, and that is being

:08:06.:08:09.

trumpeted to do great things, is that enough to keep things up?

:08:09.:08:14.

grants are going to good homes. I don't expect for free money we

:08:14.:08:17.

would have ten times as many people applying as we actually had. What

:08:17.:08:21.

does that suggest to you, that there is not enough manufacturing?

:08:21.:08:25.

There is not confidence or manufacturing. There isn't enough

:08:25.:08:29.

dynamism. If that is the case, you have people suffering increased

:08:29.:08:37.

inflation, suffering unemployment, suffering their standard of living

:08:37.:08:41.

dropping what is there for them, the positive outlook for them?

:08:41.:08:44.

we have to sort out the economy, which is not a friendly thing, it

:08:44.:08:48.

is not the easy thing. Basically we have a state which is half the

:08:48.:08:54.

economy. The public sector is half the economy. The economy can't grow

:08:54.:08:58.

quickly until the state is much smaller. Do you think actually a

:08:58.:09:03.

reform of the state in radical way is one way out of it, rather than

:09:03.:09:07.

as you perhaps would have had it, throwing good debt after bad debt?

:09:07.:09:10.

There is always things that the public sector can do better. I

:09:10.:09:13.

think the important point here is what John just said about

:09:14.:09:16.

confidence. Business doesn't have confidence, because the consumer

:09:16.:09:19.

doesn't have confidence. The consumer doesn't have confidence

:09:19.:09:23.

because a year ago the in coming Government told them there was the

:09:24.:09:27.

most almighty crisis, far worse than we could have ever possibly

:09:27.:09:33.

thought, so we will have to do draconian cuts faster. Do you think

:09:33.:09:38.

it is important. It knocked confidence and the public stopped

:09:38.:09:41.

spending money. The difference between perception and reality this

:09:41.:09:45.

is, actually what you are saying is that was hyperbole, and things

:09:45.:09:50.

aren't nearly as bad? It is not the case, and Labour should be far more

:09:50.:09:55.

confident about this. The British economy was ever in a Greek, Spain

:09:55.:09:58.

or Irish situation and the in coming Government deliberately

:09:58.:10:02.

scare amongered for political purposes and are reaping the

:10:02.:10:07.

negative awards. That is not to say we shouldn't eliminate the debt.

:10:07.:10:13.

I right in thinking you were around at the time of the 200 budget?

:10:13.:10:18.

Absolutely. In 2010 you forecast a surplus, you were only out about

:10:18.:10:24.

about �160 billion there abouts? The point s the public began to

:10:24.:10:29.

fear what was to come. They had ever reason to fear it. Of course

:10:29.:10:32.

for forecasts changing, but that is completely different from saying

:10:32.:10:36.

that this economy is going to completely collapse unless we

:10:36.:10:45.

retrench this fast. Reregulation? Very good idea. - Deregulation?

:10:45.:10:50.

Very good idea. Rather than increasing paternity and maternity

:10:50.:10:55.

leave, we can't afford it? There are a stack of things we can't

:10:55.:10:59.

afford it. We have to make it attractive to employ people,

:10:59.:11:03.

unemployed people have rights as well as employed people.

:11:03.:11:08.

Deregulation is an appropriate thing to do. Do you agree? Wekg

:11:08.:11:12.

more imaginative about this. I would like more part-time jobs, so

:11:12.:11:15.

second earners who feel they are shifts out of the jobs market

:11:15.:11:19.

because of childcare feel there is a place for them to go.

:11:19.:11:23.

confident are you that the Government is listening on

:11:23.:11:29.

deregulation? They are listening a little. I don't expect them to

:11:29.:11:31.

listen extensively, I'm merely a human being. But you are also a

:11:31.:11:36.

human being that gave money to the Conservative Party and to Liam Fox,

:11:36.:11:40.

we will come on to that. About the idea that you give money to the

:11:40.:11:45.

Conservative Party, to presumably promote your sense of what is good

:11:45.:11:49.

economic sense, mistake? It could be. Definitely the way that the

:11:49.:11:54.

Government is developing, and my views, difr, I'm very much of the

:11:54.:11:58.

opinion that - differ, I'm very much of the opinion that we should

:11:58.:12:01.

get the economy into a healthy state as quickly as possible. Many

:12:01.:12:09.

of the objectives that kit Kitty has, are the same. We will need dot

:12:09.:12:18.

do what we want until we get the size of the debt and state down.

:12:18.:12:22.

Do you agree that the example that Ed Milliband made about producer

:12:22.:12:26.

companies is accurate? Possibly no. John has made money in the private

:12:26.:12:30.

equity business, and I'm sure some of the things the firms he has

:12:30.:12:35.

invested in as a result have led to greater prosperity. I don't

:12:35.:12:43.

personally think it is a helpful characteristic. I do think we can

:12:43.:12:49.

have a better type of capitalism. believe in better capitalism,

:12:49.:12:55.

obviously. Clearly we want to end up with a socially acceptable, a

:12:55.:12:58.

pleasant capitalism, we need to have a strong economy. It would be

:12:58.:13:02.

nice to see growth in the economy. It would be nice to see incomes

:13:02.:13:05.

growing, then we could afford things we are now having. What we

:13:05.:13:11.

do at the moment is, the Government gets �4 in and spends �5. That is

:13:11.:13:16.

what it does. We are living better today at the expense of those who

:13:16.:13:21.

follow us. Who have to service the debt we leave behind. It is

:13:21.:13:24.

desperately immoral, and something the sooner we stop doing the better.

:13:24.:13:29.

Can I take you back to your relationship with Liam Fox and

:13:29.:13:35.

Judge Van der Werff, which was all the fare - Adam Werrity, which was

:13:35.:13:38.

all the furore recently. You invest in all sorts of companies, some

:13:39.:13:45.

good and bad. I'm right in saying at Liam Fox's behest you invested

:13:45.:13:52.

of a company of Adam Werrity? didn't invest, donated. What was

:13:52.:13:56.

the pitch? The pitch was I put money with Liam before the election,

:13:56.:14:04.

supporting his back office, all totally on the public record. That

:14:04.:14:07.

was successful in generating good policy documents and work. Liam

:14:07.:14:12.

asked me to put money in the same general direction, I was at great

:14:12.:14:17.

pains to get written assurances for what it was used for, by bother no

:14:17.:14:23.

recommend blapbs for what it was used for. You have the evidence for

:14:23.:14:28.

what the money was used for? I do. Do you feel duped? I can definitely

:14:28.:14:38.

say I was mugged. The definition of "foxed" is "discoloured with

:14:38.:14:43.

yellowish brown Steyning", I believe that is appropriate. Has it

:14:43.:14:48.

damaged you? Definitely, relatively small amount of money, gone very

:14:48.:14:53.

blikly, and being - publicly, and being wasted. If the grot figures

:14:53.:14:58.

here look less than impressive, - growth figures here look less than

:14:58.:15:02.

impressive, what hope is there for one of the lame ducks of Europe,

:15:02.:15:07.

Greece. After being offered a life Tyne from Europe, they have the

:15:07.:15:12.

temerity to announce they will vote to accept the plan, and the

:15:12.:15:16.

stringcy it will place on their country. If they reject it, will

:15:16.:15:21.

they have any choice but to leave the euro. Had we any idea the

:15:21.:15:27.

referendum would come out? No, it is a real shocker, the Euro-leaders

:15:27.:15:34.

didn't know, people in the Greek political establishment didn't know.

:15:34.:15:38.

In that case, the eurozone leaders were blind sided? Yes, and of

:15:38.:15:43.

course it was one of the central banks, if not the Central Bank of

:15:43.:15:49.

what was agreed last week, that there would be a pack Greece and

:15:49.:15:55.

all sorts of things done to finance it. And all called into question by

:15:55.:15:57.

George Papandreou's announcement. The key question is will people

:15:57.:16:03.

vote for it or not. A question I asked earlier this eerpbg to a

:16:03.:16:08.

Greek journalist, asking - morning to a Greek journalist what are the

:16:08.:16:15.

chances of success? Although people are concerned and they see a small

:16:15.:16:19.

A Greece's debt being written off and money coming in, fine on the

:16:19.:16:23.

one hand, but no prospect of growth and creation of jobs. If that

:16:23.:16:26.

doesn't change in the next few months, until we have a referendum,

:16:26.:16:36.
:16:36.:16:37.

then the Government will find it hard to win it. It is balanced on a

:16:37.:16:42.

knife edge. The referendum might not be until next year? It might be.

:16:42.:16:46.

George Papandreou didn't say when it would be. Many people don't

:16:46.:16:49.

think it can be done for various reasons before January. What impact

:16:49.:16:54.

will it have on the markets? Before this announcement this evening,

:16:54.:17:02.

they were all ready in a pretty shaky state. We saw that in London,

:17:02.:17:06.

in Germany, Milan, this is a key one, of course, because of fears

:17:06.:17:12.

about the Italian economy, the biggest drop today,.%. More

:17:12.:17:18.

importantly, even - 3.8%. More importantly, the rate at which the

:17:18.:17:25.

Italian Government borrow money has gone over the heiror ir6% mark.

:17:25.:17:35.
:17:35.:17:38.

Something considered - - higher mark, 6%, something considered very

:17:38.:17:41.

serious. Way back in the finance ministers' meeting in July, saying

:17:41.:17:45.

they had come up with a solution, before that George Osborne, people

:17:45.:17:49.

like him in the British Government were saying, a plaster won't do,

:17:49.:17:56.

even a one trillion euro plaster won't do. You need fundamental

:17:56.:18:01.

change, fiscal union, or moves it a properly regulated system with the

:18:01.:18:04.

European Central Bank at the core, to level out the balances between

:18:04.:18:07.

the economies of Germany and Greece's economy and others. In

:18:07.:18:11.

that sense, they can argue, already, what was agreed last week is

:18:12.:18:17.

faltering. And it really strengtheneds the case for a root

:18:17.:18:23.

and branch approach. They are also arguing that the countries outside

:18:23.:18:27.

the euro, the outer ten, need to be a key part of the process. They are

:18:27.:18:31.

hoping in the run up to the G20 meeting in France later this week,

:18:31.:18:34.

that they can continue that diplomacy. Building with countries

:18:34.:18:39.

like Sweden and Poland, the idea of a broad irconsultation.

:18:39.:18:48.

Earlier today I spoke - Broad earlier consultation.

:18:48.:18:58.
:18:58.:18:58.

Earlier I asked Radek Sikorski, the polish Foreign Minister would

:18:58.:19:06.

Poland join the Euro-? It is a time - Euro? It is a timing issue. We

:19:06.:19:10.

are determined to join the eurozone, it makes sense for us. When the

:19:10.:19:13.

house is being tidied up and renovated, it is not the best time

:19:13.:19:20.

to move in. At what point do you think will you be ready to join?

:19:20.:19:30.
:19:30.:19:30.

is both an economic and political decision, as I say. We don't just

:19:30.:19:34.

sympathetically look on overcoming the problems of indebtedness in

:19:34.:19:40.

Europe, as the presidency we have been part of the solutions. The six

:19:40.:19:44.

pack, had it been agreed earlier, perhaps we wouldn't be in the

:19:44.:19:51.

trouble we are in. But it is a bureaucratic name for a set of

:19:51.:19:54.

regulations that will increase financial discipline in the

:19:54.:19:58.

eurozone. We hope it will work. interested to know what it has been

:19:58.:20:03.

like handling the EU presidency, when you have these egos of Angela

:20:03.:20:08.

Merkel and Nicolas Sarkozy, how do you work with them? The presidency

:20:08.:20:14.

is not what it used to be, we are not the presidency of the European

:20:14.:20:16.

council, we have a permanent head to do that. I don't have the

:20:16.:20:23.

foreign affairs council, because we have a Brit, Cathy Ashton, who does

:20:23.:20:29.

it very ablely. It is true in Ecofin, and the Finance Minister

:20:29.:20:34.

has had his plate full, and we feel we are achieving progress. We feel

:20:34.:20:40.

that it is at times like this that we need to complete the single

:20:40.:20:48.

market. For example, in services and in transborder trade, we think

:20:48.:20:52.

that would help Europe get out of its recession. When you say you are

:20:52.:20:58.

treaty oblige to join the euro, and that was - treaty obliged to join

:20:58.:21:03.

the euro and that was settled, are there people worrying about what

:21:03.:21:07.

happened to Greece and Italy might be there for Poland and you are

:21:08.:21:12.

stirring up more trouble for Poland when you join? We will make up that

:21:13.:21:16.

argument when we are joining the euro. We think it would still make

:21:16.:21:22.

sense for us, we want to be in the group of countries, the that decide

:21:22.:21:26.

the fate of the largeest economy on earth and the largest single area.

:21:26.:21:31.

Let's talk about Britain now, it is implacably opposed to the euro.

:21:31.:21:35.

There is some sense in which Britain would be seen as the leader

:21:35.:21:39.

of the gang that is outside the euro, you are part of that gang at

:21:39.:21:43.

the moment, how do you feel about that? We are different in that,

:21:43.:21:49.

because Poland is not yet in the euro, but will be in the euro one

:21:49.:21:58.

day. Our argument is not only that the fate of the eurozone and the

:21:58.:22:02.

principles covering all of these are important for the euro. It is

:22:02.:22:05.

very important because even Britain will be affected. Our additional

:22:05.:22:13.

argument is we want to have a say in principles by which we will also

:22:13.:22:17.

one day be running our economy. you think Britain should join the

:22:18.:22:25.

euro? It is an economic argument that depends on trade flows. About

:22:25.:22:31.

half your trade is with the EU. For us it is higher. The argument from

:22:31.:22:36.

that point of view is more powerful. One of the arguments against Europe

:22:36.:22:44.

being a natural single currency area, was that there was low

:22:44.:22:48.

movement of labour. Here in Britain I think you are experiencing quite

:22:48.:22:53.

a lot of movement of labour within the EU. Including Poland. It has

:22:53.:23:00.

been good for the British economy, we hope some of my compatriots will

:23:00.:23:04.

come back. With all the turmoil, not only in the Tory backbenchers,

:23:04.:23:10.

but in the cabinet, there is a talk about referring treaties. The talk

:23:10.:23:15.

is, perhaps even making sure that borders are not open, and that

:23:15.:23:25.
:23:25.:23:28.

thriel there is not even a free movement of - a free movement of

:23:28.:23:34.

all things within the euro. That is one of the key freedoms in Europe,

:23:34.:23:38.

the Tories under Lady Thatcher sponsored and brought to best. I

:23:38.:23:45.

would be surprised that is a fundamental feature of the single

:23:45.:23:51.

market. I don't think a country that would ban movement of Labour

:23:51.:23:57.

labour - labour could hope to remain in the single market. There

:23:57.:24:00.

are some who would like use to leave the European Union all

:24:01.:24:05.

together? I can't comment on internal British comments. We know

:24:05.:24:12.

in plilgts people are moved and motivated by - politics, people are

:24:12.:24:16.

moved and motivated by politics. For a Cathedral to lose one

:24:16.:24:18.

Clergyman might be considered unfortunate, but to lose three in

:24:18.:24:24.

less than a week begins to look careless. Today the Dean of St

:24:24.:24:27.

Paul's, Graeme Knowles, followed his colleague, Giles Fraser and

:24:27.:24:32.

another chap went out of the door in the temple. He's the one who

:24:32.:24:35.

wanted to evict the protestors camped outside, now the Bishop of

:24:35.:24:41.

London is taking charge. A protest movement that was anti-capitalism,

:24:41.:24:51.
:24:51.:24:52.

seems to be provoking a crisis of confidence in the Church of England.

:24:52.:24:57.

From the start, the protestors in the Square Mile had the City banks

:24:57.:25:01.

in their sights. But after they were kept back by police, the area

:25:01.:25:09.

in front of St Paul's Cathedral was where they based themselves. It has

:25:09.:25:13.

become an ethical quagmire for church authorities. They have found

:25:13.:25:16.

themselves riven over issues ranging from free speech and the

:25:16.:25:23.

ethics of the market, to health and safety and even tourist revenue.

:25:23.:25:29.

find it quite difficult that you assume that I hold the same views

:25:29.:25:33.

of you, simply because I don't use the same methods of expressing my

:25:33.:25:38.

views as you. Now the Dean of St Paul's, Graeme

:25:38.:25:41.

Knowles, who was in discussions with the campers as recently as

:25:42.:25:51.
:25:52.:26:04.

yesterday, has become the latest The All this comes after Fraser

:26:04.:26:13.

frai, Canon Chancellor of St - Giles Fraser, Canon Chancellor of

:26:13.:26:16.

St Paul's resigned. It is a car crash and the Church of England

:26:16.:26:20.

have got themselves into a real mess over this. The latest

:26:20.:26:24.

resignation is perhaps an indication of what Giles Fraser,

:26:24.:26:31.

the Canon of St Paul's all luded to, is that we are on a trajectory

:26:31.:26:36.

towards eviction, it is unstoppable. At the end of this we have seen

:26:36.:26:39.

resignations and careers ended and for no purpose whatsoever. The

:26:39.:26:49.
:26:49.:26:55.

whole protest will move on shortly. And the only people taking any

:26:55.:26:59.

flack for it is the Church of England, it is collateral damage in

:26:59.:27:05.

a row that it didn't need to be involved in. The protestors have

:27:05.:27:09.

certainly got plenty of attention for their grievances. Surely the

:27:10.:27:16.

enemy are those in the dealing rooms, not those in the pulpit.

:27:16.:27:21.

Canon Giles Fraser stood down because he felt the stand that the

:27:21.:27:27.

Church of England would lead to violence. I respect him for doing

:27:27.:27:30.

that. The Dean had resigned today I believe because of the way the

:27:30.:27:33.

situation was handled. Again that is a situation that he, a decision

:27:33.:27:38.

he has made personally, we have to remain on the issues, this is an

:27:38.:27:41.

opportunity for the church to make a real difference to people's lives

:27:41.:27:46.

in this country and throughout the world. The Archbishop of Canterbury

:27:46.:27:51.

paid tribute to the outgoing Dean. In his earlier pronouncements he

:27:51.:28:01.
:28:01.:28:10.

has appeared to question the ethics Safe pair of hands? The Bishop of

:28:10.:28:14.

London is caretaker of the Cathedral for the time being.

:28:14.:28:19.

not taking a softer line at all. I think that as people were saying to

:28:19.:28:24.

me yesterday morning, the campsite has to disappear at some point. It

:28:24.:28:30.

has to be scaled down. The Cathedral is prudent and sensible

:28:30.:28:35.

in exploring the legal territory. I'm told by the Chapter that they

:28:35.:28:39.

would not wish to condone the use of violence in securing any

:28:39.:28:45.

enforcements. Not the least of the challenges

:28:45.:28:50.

facing the Clergy at St Paul's, is to ensure they are all singing from

:28:50.:28:58.

the same hymn sheet. I'm joined by the writer Anne

:28:58.:29:04.

Atkins, and an Anglican minister not far from St Paul's, he was

:29:04.:29:07.

public affairs secretary for the Archbishop of London. It looks as

:29:07.:29:11.

if the Church of England is completely out of its depth and out

:29:11.:29:14.

at sea and ruled by man? certainly not because it is ruled

:29:14.:29:19.

by man. One of the several PR disasters of the last couple of

:29:19.:29:25.

weeks. You hear that St Paul's is losing �20,000 a day in tourist

:29:25.:29:28.

revenue. We are not hearing about how many millions it costs for the

:29:28.:29:32.

poor Church of England to keep this building open, with no help from

:29:32.:29:38.

the taxpayer. In Germany the taxpayers keep the churches open.

:29:38.:29:43.

The Church of England buildings are kept open and paid by the people in

:29:43.:29:48.

the pews. This is I'm not defending this, I'm just saying. Nobody is

:29:48.:29:52.

making a profit about this. I would put it to you in the 21st century

:29:52.:29:57.

the church needs to cut its cloth and get out of St Paul's?

:29:57.:30:02.

Absolutely we need to handle over to English Heritage, and it is not

:30:02.:30:05.

what Jesus talked about, and we are lumbered with these things. This is

:30:05.:30:09.

one of the many things in which the church is not really presenting its

:30:09.:30:14.

case really well. Another thing, I'm sure that most members of the

:30:14.:30:22.

latity are not aware and why should they be, is how incredibly brave

:30:22.:30:27.

and frightening it is for a middleaged Clergyman to resign his

:30:27.:30:31.

post, when he has probably earned next to nothing all his life, no

:30:31.:30:35.

savings, owned no house for his children to live in. Is it the

:30:35.:30:38.

church's fault because it hasn't delivered a clear line in this, and

:30:38.:30:42.

it looks like the money lenders are running the temple? It is a PR

:30:42.:30:46.

disaster and they have mismanaged it, that seems to be statement of

:30:46.:30:50.

the bleeding obvious. I think today has been a game change. The

:30:50.:30:55.

resignation of the Dean has put, has focused attention on the

:30:55.:30:59.

politics that is going on. Graeme Knowles has gone, and he went very

:30:59.:31:02.

suddenly and very quickly. And tomorrow we learn a few hours later

:31:02.:31:06.

that the corporation of London are going for an eviction order. I

:31:06.:31:11.

think those two things are related. I think he realised, probably

:31:11.:31:15.

through Niamhity, that he has associated himself to what would be

:31:15.:31:20.

a hawkish and aggressive policy, and he couldn't count on staying.

:31:20.:31:22.

Is there not something that says the protestors were never meant to

:31:23.:31:28.

be there in the first place? It is a legitimate protest. But actually,

:31:29.:31:33.

they should be more sensitive to the church's needs? They have been

:31:33.:31:39.

very sensitive to the church's needs. We hear from the protestors

:31:39.:31:43.

expressions like, all we are looking for is an honest and frank

:31:43.:31:47.

discussion with the Cathedral. Frankly, that is a phrase that the

:31:47.:31:50.

Cathedral should be using. There is quite a mystery here, there is a

:31:51.:31:54.

mystery as to why the Cathedral closed. I don't think it is a

:31:54.:32:01.

mystery. There is a mystery. It is a kneejerk reaction over health and

:32:01.:32:05.

safety issues before knowing what they were. If they had chosen to

:32:05.:32:12.

camp outside, suppose the protestors camped out St Helen's

:32:12.:32:15.

bishops gates, they would be eadvantagised which would have

:32:15.:32:20.

moved them on. If they were outride a Roman Catholic church, I was in

:32:20.:32:25.

Italy speaking to Italians last week, they said if this was

:32:25.:32:29.

happening in St Peter's in Rome or the steps of the Vatican, they

:32:29.:32:33.

would have been water canoned within half an hour. We fought a

:32:33.:32:37.

reformation not to be that kind of church, to be rather more engaged

:32:37.:32:41.

with the people on the doorstep than they are. I'm sure that would

:32:41.:32:46.

not be the only thing for water canon, there might have been in

:32:46.:32:51.

ministry? In Rome. They say the first thing that would happen is

:32:51.:32:55.

the water canon. Where is the ministry here, do the protestors

:32:55.:33:01.

want to be ministered to? That is not the question the church asks,

:33:01.:33:04.

this church says this is what the world needs to hear. If people are

:33:04.:33:08.

saying what would Jesus do, Jesus would have been on the side of the

:33:08.:33:12.

protestors? No he wouldn't, he would have ploughed a completely

:33:12.:33:17.

different Faroe saying you are worrying about the wrong thing.

:33:17.:33:20.

are called to be between the authority and the people. If you

:33:20.:33:23.

are talking about signals, the Archbishop of Canterbury said

:33:23.:33:28.

clearly there was a problem. It is perfectly legitimate to think that

:33:28.:33:30.

some of the protestors could be following his lead. In that case

:33:30.:33:34.

what happens in the next 48 hours. There will be evictions, what will

:33:34.:33:38.

happen? I don't know what will happen, I'm longing for somebody

:33:38.:33:42.

like Dr Williams to say, look this is Jesus message, it is that you

:33:42.:33:46.

are all off message there is something much more important to

:33:46.:33:49.

worry about than the City of London, than what we are earning, there is

:33:49.:33:57.

another life to worry about. Do you think that Rowan Williams should go

:33:57.:34:02.

there? He would be reluctant to go over the head of the bishop in

:34:02.:34:06.

charge of this. And very competently. And very competently,

:34:06.:34:11.

when the riots occurred in August, the Bishop of London was one of the

:34:11.:34:15.

few really cogent voices saying we can call for more law and order,

:34:15.:34:19.

but frankly that is obvious. What we need to understand is why these

:34:19.:34:25.

things are happening, and what we mustn't be, and the words he used

:34:25.:34:29.

is, what we mustn't be is in a sealed bubble. If there is any

:34:29.:34:33.

injuries or trouble during eviction, that will not reflect very well?

:34:33.:34:36.

will ruin the reputation of the Church of England for a generation.

:34:36.:34:40.

It will ruin the reputation for a generation? Not a generation. What

:34:40.:34:43.

is going on in the Church of England is financial meltdown. What

:34:43.:34:49.

I would love to hear is a church woman orman coming out and giving

:34:49.:34:57.

the real message of Jesus which is to do with nothing here.

:34:57.:35:04.

A Smoking detective in a reindeer patterned jumper. That is the

:35:05.:35:10.

Daneer drama The Killing, over on 20 episodes on BBC Four, half a

:35:10.:35:15.

million viewers got to know Sarah Lund slowly, as she worked on a

:35:15.:35:20.

devastating murder case with consequences for her personal life.

:35:20.:35:24.

The actor coroborated with the writer and director in shaping her

:35:24.:35:29.

character. You in a sense inhabit some of the archetypal

:35:29.:35:34.

characteristics of a male detective. Failed marriage, your problem with

:35:34.:35:37.

smoking, you turn it around and make it very much your own. You are

:35:37.:35:41.

kind of slightly all at sea when it comes to your mother, your

:35:41.:35:44.

exhusband, your partner, your son, but at work you are on top of your

:35:44.:35:54.
:35:54.:35:55.

game all the time? We all felt that the story of the woman in a dilemma

:35:55.:36:00.

between work and family, work and love stories, you know, the whole

:36:00.:36:09.

battle between that, that I, of course, as a woman, I'm totally

:36:09.:36:13.

aware that is how it is. We thought it had not relevant and it had been

:36:13.:36:19.

told so many times. We thought we didn't want to focus, there is not

:36:19.:36:24.

really a dilemma in that for this character, her marriage, her

:36:24.:36:34.
:36:34.:36:48.

biggest relationship is with her It is interesting now for feminism

:36:48.:36:53.

to look at that and say that is a perfectly legitimate way to run

:36:53.:36:59.

your life? I don't know if I would recommend it to anyone, men or

:36:59.:37:09.
:37:09.:37:09.

women. I don't know if it makes you happy, but for a story, for the

:37:09.:37:16.

dramatic rules of drama, it is true. While you have quite male

:37:16.:37:23.

characteristics in terms of how you maybe approach the case, your

:37:23.:37:29.

intuition is very female. You have imbued the character with intuition,

:37:29.:37:37.

which is a feministic, it pays off? It is funny you call it intuition,

:37:37.:37:47.
:37:47.:38:00.

This role has challenged my own views of what is feminism and what

:38:00.:38:08.

is masculine. And I must say, that it has liberated a lot of my own

:38:08.:38:13.

very fixed thoughts about which is which. Because I don't know, it is

:38:13.:38:20.

a gut feeling or intuition, as you say, is that feminine or masculine

:38:20.:38:26.

trait? I find that...Maybe It is just a good detective. Yeah. I love

:38:26.:38:30.

the way the camera focuses on your face, you give so little away. Is

:38:30.:38:35.

that what you wanted to do, less is more in the way to interpret the

:38:35.:38:43.

character? We decided earlier on that was our goal, to create this

:38:43.:38:46.

very secretive character. Where you didn't reveal everything. I think

:38:46.:38:56.
:38:56.:39:11.

we both found that it was more I actually remember at the wrap up

:39:11.:39:16.

party, at the end of the 20 episodes, we had a goodbye party,

:39:16.:39:23.

and the writer came up to me and said, I think that around episode

:39:23.:39:30.

18, I think we got the character, she was there. Which was wonderful,

:39:30.:39:36.

of course, I knew what I meant. After 18 episodes she was almost

:39:37.:39:42.

striped of everything. We are about to see series two of The Killing,

:39:42.:39:46.

not 20 episodes but ten. You have been sent to a small town as a

:39:47.:39:52.

passport inspector, and then you're called back. When you started

:39:52.:39:56.

shooting this, did you know what was going to happen when you were

:39:56.:40:02.

called back? Like we always work, I only had that first script that we

:40:02.:40:08.

were working on. Because nothing else was written. But, of course, I

:40:08.:40:13.

always have the writer telling about the bigger lines. But I don't

:40:13.:40:23.

know where the story is going, and I'm actually working on the third

:40:23.:40:28.

season now. I don't know where it is going. And presumably

:40:28.:40:32.

singlehandedly you have turned round the Faroe Isles economy by

:40:32.:40:37.

that jumper? I hope, they need it, like the rest of us. Thank you very

:40:37.:40:42.

much indeed. Is the world a violent place?

:40:42.:40:46.

Almost certainly, yes. A position reinforced by the images that flash

:40:46.:40:50.

daily on to our TV and computer screens from around the world. Is

:40:50.:40:55.

it a lot less violent than it was, despite the of the repeated

:40:55.:40:59.

assertion that the 20th century was the bloodiest in history. Steven

:40:59.:41:03.

Pinker argues in his new book, The Better Angels of Nature, after a

:41:03.:41:07.

phrase by Abraham Lincoln, that despite world wars, civil wars,

:41:07.:41:11.

invasions and long-running conflicts, a range of cultural,

:41:11.:41:15.

social and scientific changes, the rise of empathy and reason, have

:41:15.:41:19.

ensured that the world has become a less violent place.

:41:19.:41:24.

Steven Pinker, first of all, do people regard or recoil from

:41:24.:41:29.

violence more now because of philosophical issues, or simply

:41:29.:41:32.

because of pragmatic issues. For example, if someone was to set off

:41:33.:41:38.

a nuclear bomb a lot of us would not be here again, is it

:41:38.:41:41.

pragmatisim or philosophical? think it is a bit of each. I think

:41:41.:41:47.

the theory that we owe the theory of peace to of the last six decades

:41:47.:41:52.

to the nuclear bomb I think is wrong. For one thing, there was

:41:52.:41:57.

plenty of memory from World War II, that good old fashioned tanks and

:41:57.:42:01.

artillery and good old aerial bombardment could do so much damage

:42:01.:42:05.

that nobody wanted a rematch some time soon. Because the nuclear bomb

:42:05.:42:11.

is so useless as a tactic in war, other than deterring all out

:42:11.:42:15.

annihilation, that it was almost taken off the table as a live

:42:15.:42:21.

option. That is why so often in the last decade a non-nuclear power as

:42:21.:42:26.

defied a nuclear one. Argentina knew Britain wouldn't retaliate

:42:26.:42:31.

with a nuclear strike. Isn't part of the reason people are less

:42:31.:42:36.

depreposed to violence is we are a much more interconnected world, and

:42:36.:42:41.

it is not just faceless masses being mown down? I think so, it is

:42:41.:42:45.

not a coincidence that the enlightenment, such as the

:42:45.:42:51.

abolition of slavery, and things like disemboweling and breaking on

:42:51.:42:56.

the wheel, came after an enormous expansion of book publishing,

:42:56.:43:02.

travel, music, cosmopolitan cities, the advances the last 60 year, the

:43:02.:43:07.

civil rights he have illusion, the women's rights he have illusion,

:43:07.:43:11.

the electronic global village. It is hard to extol the buetyo of war

:43:11.:43:16.

when you have images of a naked girl running from a napalm attack

:43:16.:43:21.

and the reality of war is brought home to you. You are in the habit

:43:21.:43:23.

of seeing the world from other people's points of view. Imagining

:43:24.:43:28.

what it is like to be someone else, by reading their words and history

:43:28.:43:34.

and memoirs. That is interesting, that doesn't, that would not

:43:34.:43:38.

necessary - necessarily be the case when it comes to the war in the

:43:38.:43:42.

Balkans, people were seeing their neighbours, and in Kosovo, people,

:43:42.:43:47.

their neighbours they were mowing them down. There was a senseless

:43:47.:43:53.

violence and genocidal violence. That in itself, it may be more

:43:53.:43:57.

compartmentalised, but there is no improvment in human nature is

:43:57.:44:01.

there? I don't think there was an improvement of human nature, we are

:44:01.:44:05.

born violent and always have been, it is different aspects of human

:44:05.:44:10.

nature engaged by the world. Human nature comprises a lot of ugly

:44:10.:44:16.

motives, revenge and tribunalism, but motives like empathy, self-

:44:16.:44:23.

control and reason. It is which one of those, the better angels, or the

:44:23.:44:26.

inner demons, gets engaged in the world we live in. In violence and

:44:26.:44:29.

war, we are talking about the economy tonight. Do you, you seem

:44:29.:44:39.
:44:39.:44:40.

to say in your book that we generally unjustifiably unpest

:44:40.:44:46.

mistic, we are move glass half full rather than empty. At the very

:44:47.:44:53.

least we need to show grattaid for what we have done right, -

:44:53.:44:57.

gratitude for what we have done right. The world of the journalism

:44:57.:45:01.

is biased, there is enough violence to fill the news, news is full of

:45:01.:45:05.

things that go bang and people get hurt. When you have millions dying

:45:05.:45:09.

peacefully from Alzheimer's dae disease, cancer, heart attacks, it

:45:09.:45:17.

is not cameras filming those deaths, violence can be distorted by

:45:17.:45:20.

horrific images on the news. suggest reasons to be cheerful

:45:20.:45:26.

rather than reasons not to be unhappy? Among other things the

:45:26.:45:29.

threat of global nuclear annihilation has been taken away.

:45:29.:45:36.

Which is what many of us grew up with. In a modern society we have a

:45:36.:45:41.

30th chance of being murdered as our medieval ancestors. Women,

:45:41.:45:44.

racial minorities and gay people no longer have the threat of violence

:45:44.:45:50.

in the home and streets. And we have abolished barbaric practices

:45:50.:45:56.

like human sacrifices and prisons. No more human sacrifice! Tomorrow

:45:56.:46:02.

morning's front pages, in the Telegraph, St Paul's branded a

:46:02.:46:12.
:46:12.:46:31.

That's all from Newsnight tonight, if you have been out this

:46:31.:46:41.
:46:41.:47:03.

Hallowe'en, hope you did well. Good Good evening. Some heavy rain

:47:03.:47:07.

tonight, pushing from west to east. The rain will gradually ease in the

:47:07.:47:10.

morning. Producing cloudy and damp start for eastern England, further

:47:10.:47:13.

west heavy showers around, increasing amounts of sunshine.

:47:13.:47:17.

Showers decay into the afternoon. It is looking like a pleasant start

:47:17.:47:20.

to November for many. In northern England light winds, longer spells

:47:20.:47:24.

of sunshine. Feeling warmer than today. Temperatures on the face of

:47:24.:47:28.

it a few degrees down. The far south-east corner, including Sussex

:47:28.:47:32.

and Kent may take all day for the skies to clear, and to see a little

:47:32.:47:37.

bit of sunshine. Most low cloudy throughout, rain heavy for a time

:47:37.:47:40.

but easing. Into the south west and through Wales the morning showers,

:47:40.:47:43.

of course, which could be heavy, will gradually said one or two into

:47:43.:47:47.

the second half of the day. Most dry and bright. Same too in

:47:47.:47:51.

Northern Ireland, any early showers here will disappear, for most it

:47:51.:47:55.

will be a predominantly dry and sunny day. Big improvements on

:47:55.:47:58.

Monday's weather. Still showers in North West Scotland, the rest of

:47:58.:48:08.
:48:08.:48:19.

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