10/01/2012 Newsnight


10/01/2012

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Tonight a truly British network. The Transport Secretary on high-

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speed rail. HS2, no thank you.

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Not everyone is rejoicing at plans to boost the economy by spending

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�33 billion on a rail link from London to Birmingham and beyond.

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The upset of having one's house taken away from one, without any

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say so. How could you not care about that. We will debate whether

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the money might be better spent elsewhere, as the transport

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minister faces critics of the project. Also tonight: I'm very

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confident they will make a decision in the best interests the future of

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Scotland. Scotland's First Minister calls the timing of a referendum on

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independence. We will ask the Scottish Secretary if he has other

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ideas. Moon while, in Westminster: We are on the river for Ed

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Milliband's new year, new speech. Just don't use the word "relaunch ".

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Ed Milliband recognises there are difficult economic choices ahead, a

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Shadow Cabinet minister explains whether this is leaderership or

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followership. And who is going to be the man to challenge Barack

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Obama. Bonjour, je m' appelle Mitt Romney. Many voters dislike Mitt

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Romney, but he may emerge as the last man standing. We will hear

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from one of his more surprising supporters.

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From the time of the first Roman roads, major transportation

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projects have had huge economic, political and social and economic

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consequences. The going ahead with the HS2, the high-speed rail link

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from London in order warts, the Government is putting taxpayer

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billions to linking the south-east with the Midlands and eventually

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the north. Talks with the Scottish Government are promiseded. Critics

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say the money would be better spent on other things. We will explore

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that argument in a moment. The project today was called by

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some a white elephant, and by the Government, a truly British network.

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When the first-ever railway lines were built in the 1820s, the

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reaction of the people was described as fear and fascination.

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Now the subject of a new exhibition in the National Railway You museum,

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what was described then as the ruination of the countryside,

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became a permanent part of Britain's landscape.

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200 years later, as the Government finally enforces the country's

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biggest-ever infrastructure endeavour. Still plenty of

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fascination and plenty fear. could have gone for the short-term

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option, rely on a patch and mend approach, loaf our railway networks

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overstretch, overburdened -- leave our railway networks overstretch,

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overburdened and overresilient. The price of that would have been paid

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in lost business, lower growth, fewer jobs and more misery for

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passengers on a network that could not cope with the capacity.

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When built, high-speed 2 will depart from a beefed up Euston

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Station in London, and then head to a newer station in Birmingham,

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taking 45 minutes. All going to plan will be built in 2026. Phase

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two will see trains heading to man chester, and cutting the journey to

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one hour and eight minutes. Another spur will travel to Leeds, where a

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journey to the capital could be cut to an hour-and-a-half. Phase two is

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pencilled in for completion by 2033. HS2, no thank you. What is designed

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by architects in London, has a real impact elsewhere, especially in the

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illusion greenle valleys in the Chilterns, home to the safest Tory

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seats in Christendom, and hope to the most vociferous opponents.

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This is the leader of Chiltern district council, and a member of

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the anti-HS2 movement, 51M. How much of that was negotiateded with

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locals when route planning was happening? Nothing was negotiated

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with locals, they decide what they want to do. This is the Department

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of Transport? Yes, they don't negotiate, they say this is where

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the route will be. You can make a protestation, and say we don't

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think that is quite right. And sometimes they listen and sometimes

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they don't. We understand from the map,

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although it is not 100% clear, that it will now be 50 yards in that

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direction. Alex Sheffield's 450- year-old home is right on the new

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line. The house itself will be spared, but much her garden and

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farm will be bulldozed, according to the latest plans. So when people

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accuse you of being a nimby, Alex, what do you say? That I challenge

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anyone, in had my position, not to be a nimby. If they had their house,

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that was the upset of having one's house take be away from one,

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without any say so. How could you not care about that.

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A few hundred miles further up the line, the people set to benefit

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from phase two of the project are much more enthusiastic. We initial

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low asked our members about high- speed rail, and whether they wanted

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to cover the region, 90% of members said they were in favour of it

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coming to the Leeds city region. That is because it firms up their

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investment plans, it gives them certaintyer for the future. Which

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is very much what -- certainty for the future, which is very much what

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business wants. It will also mean it will attract new business to the

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area, because of the improved transport connections.

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And 40 miles south of Leeds, is Sheffield, the Deputy Prime

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Minister's constituency, though one wonders whether he will still be in

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that post by 2033, when HS2 arrives. It it is really great news, it it

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is great news for the whole country. I think especially for the great

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cities of the north. Leeds, Sheffield, done caster, you name it.

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For so long - Doncaster, you name it, for so long the Government has

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spent time worrying about the south-east, and this is a big

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investment in the future, linking north and south together. So

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everybody, no matter where you live, particularly in the north of the

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country, will share in prosperity in the future. There are plenty of

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people who say the Government's motivation in pressing ahead with

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HS2 are more political than economic. Certainly connecting the

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West Midlands, where there are plenty of marginal seats, will play

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well on the doorsteps in 2015. The Tories could legitimately say they

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are not just focused on the south- east, but economically in the north.

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If the high-speed rail service the economies of the North West and the

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Midlands, and boosts them, the Conservatives will have made a huge

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impact in the two regions that are amongst the killing grounds in the

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general elections, where Governments are made and broken,

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stuffed through on marginal seats, the Conservatives were 19 seats

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short in the last elections, in the West Midlands alone there are 24

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seats, where close to Labour F they get a benefit from it, it might

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make a difference at the next election.

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The think-tank of economic affairs, normally agrees with Conservative

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Party politics, but not on this one. One of the reasons that people

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think HS2 has gained support in the Conservative Party, is because that

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party did so badly in the general election in areas like the West

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Midlands and the north of England. This is a big carrot to would

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voters in those regions. Voters -- woo voters in those regions. Voters

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understand they will have to pay for it with their tax money, they

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are not so easily fooled. Eventhough the Government may have

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said full steam ahead,ed today might also start a number of ma --

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ahead, today might also start a number of major legal challenges.

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But things may have of moved on by then that we may be able to

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teleport between cities. I'm joined by the transport

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minister and three opponents of the scheme, Gillian Tett, a group of 18

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local authorities opposed to the scheme. The head of the woodland

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Trust, and the head of the city Group A M. Why is now a good time

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to promise to spent �33 billion on shaving minutes off getting from

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Birmingham to London? The objective of pursuing this ideal, shared by

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all three parties in the parliament, is not to shave time off travel

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between Birmingham and London, but to create economic prosperity in

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the north, and to deal with the chronic overcrowding that we are

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anticipating on the railways. The numbers on the railways have

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doubled in the last ten years, and the West Coast Mainline, which we

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have spent money on is almost full already. We will have people

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priceded off the railise or standing for very long distance --

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railways, or standing for very long distances. Why not get on with it,

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why wait in until 2026? transport minister promised to

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accelerate the timetable the we have a complicated process in

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parliament, we have to listen to the inch by inch on the line

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through parliament the bill won't be ready until 2015. We have to

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look at it properly. When you lock at all these problems and you talk

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overcrowding, you know commuter trains are seriously overcrowded.

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All the possiblities you had, this is by far the best one, is it?

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because that would be a fair question, if we were doing nothing

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else. The reality is we have got, never mind HS2 apart from that we

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have the biggest rail investment programme in this country since

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Victorian times. CrossRail going you awe head, Thameslink. You have

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chosen to give priority to this in terms of money, not a new airport

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in the south-east or commuter trains? We are doing commuter

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trains, Southern we authorised another �80 million for Southern

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over the Christmas prd. We have a rail investment programme taking

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place now. HS2 has a lead-in period. When CrossRail is completed that

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budget it be transferred to HS2. Let's go to those yet to be

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convince. The changes to the project, longer tunnels, more

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tunnels, that kind of thing, does that hp you, because it means the

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areas -- help you, because it means the areas will not be soed bad low

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affected as you see it? It is not about woods and fields. As local

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authorities remember used to the fact of taking strategic and

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controversial decisions. The problem for the Government is when

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you are spending �32 billion worth of your money and my money, every

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viewer's money, you have to make sure you are spending on good value

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for money and in the national interest. The problem they have is

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virtually every independent observer, looking at this, thinks

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this is a very poor business case, it it is poor value for money, and

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the national interest isn't served. You are talking about national

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interest, but you are thinking about Buckinghamshire and nimbyism?

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That is the slur from the Labour champions, this is Gordon Brown's

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scheme initially. The argument for this and the Transport Select

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Committee looked at it in great detail, they said don't throw the

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acronym nimby around, this is about justifying a business expenditure

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of �32 billion around in a time of maer jor austerity. The �32 --

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Major austerity. The �32 billion kicks in 20 26, when CrossRail ends,

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the budget will transfer to HS2 we are carrying on with investment in

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the railways now, in the way they have don advocated to do in terms

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of expenditure. I don't accept that case. The transport select commity

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said there was a good case for the line. In the business case, you

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have to spend back every pound you spend �2 paying back. Those figures

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have gone down. You accept that? don't accept that. It is �1.76 to

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�1 for the first phase and less for the second. How much extra have you

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had to spend on longer tunnels in the hope of buying off local

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opposition? It it is not a question buying off local opposition, but

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listening to people's consultation responses. How much did that cost?

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If you take one of the tunnels questioned in the Commons today.

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Because we are avoiding certain things we are saving money. So the

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net cost of building more tunnels? There is a net cost, but it is not

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significant, particularly, in terms of the overall scheme. The overall

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top. Nothing is significant concerned to that? The top line

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figure has not changed significantly from today's

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announcement. It is worth saying there is a 60% cushion to allow for

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overspend in that �33 million. Martin said it was not about

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woodlands, however important they are. What is your anxiety the

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woodlands? It is about the woodlands from the Woodland Trust

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pr pective. It is important to weigh up -- perspective, it is

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important to weigh up the economic case, we think the cost will be too

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great. There will be 19 ancient woods destroyed by the route, and a

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further 27 damage. They are a rainforest, irreplacable, and the

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richest wildlife habitats, we believe that level loss is

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unacceptable. -- level of loss is unacceptable. Aren't some going to

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be relocateded? It is impossible to relocate something that has been

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there hundreds of years. It is a unique habitat, not disturbed for

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about 400 years, you can't just lift it up and move it. Why are you

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promising to relocate some of the ancient woodlands, that sounds like

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a nonsensical statement, if it is ancient it is ancient? We are

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planting millions of trees along the line. They won't be ancient

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woodland? We are listening carefully to what people have say.

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There is 22 miles tunnelment compared to 14 in the consultation.

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56 miles will be in deep cutting. Half the line will be unseen. And

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then the Chilterns AONB, we accept is a sensitive area, two miles will

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be on the surfacement we have taken great steps to protect the

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environment consequences. We will see a shift of four-and-a-half

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million flights, nine million car journies each year on to the

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railways, that will have a carbon benefit. It is not as simple to say

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the tunnels will mitigate the loss of ancient woodland, cutting and

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covering will destroy the habitat. It is not a valid mitigation.

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Planting trees, we accept it is great a lot trees will be plant in

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the corridor, but destroying ancient woodland needs replacement.

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You are against the overall economic cautious you think there

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is a better use of the money? is right -- economic case, you

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think there is a better use of the money? I think so. These public

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sector probgtjs always end up spending -- projects always end up

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spending more than the politicians think. The benefits will be smaller,

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the numbers don't make any sense. If you want to spend the money,

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spend it on something else, airports, more motorways, other

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places in rail. The minister is making the point that other things

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are being done? They are spending �32 billion, it is a huge sum of

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money and misallocation of resources, you could renovate much

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more of thek cysting rail structure. You would get more benefits --

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existing railway structure, you would get more benefits for Britain,

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and commuter lines. I don't buy we should spend �32 billion, a

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thousand pounds per income taxpayer, it is a white elephant. Plenty of

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business people will disagree and are enthusiastic, those in

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Birmingham, Manchester and Leeds are hugely enthusiastic because

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they see the economic benefits to the areas? There is huge economic

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benefits but the costs are muchp higher. You could help these

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businesses and these parts of the UK in other, cheaper, more

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efficient and more effective ways. We are helping them, we are

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spending huge amounts of money on transport since the general

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election, despite the difficult economic circumstances because we

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recognise investment in transport is very good for the economy.

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Perpouring ahead with road and rail in a way that has -- we are pouring

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ahead with road and rail in had a way that hasn't been done before.

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There is a 60% cushion in there Because we recognise that projects

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from the public sector have a tendency to overshoot. We have

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allowed that by an overestimate in the cost. Did you see anything in

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the argument being made in the film that perhaps some this is about

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politics, helping out the north economically, but showing the

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Government cares about the north, because that is where the votes

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are? I think all Governments fall for the idea that some big pros

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teenagous project is like a silver bull -- prestigious project is like

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a silver bullet. We all care about the country and want economic

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growth, the fact that one scheme will do that is something all

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Governments fall forment I remember Concorde, the Channel Tunnel, the

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Dome, they are delusions. What brings growth is investment in the

:17:41.:17:44.

infrastructure. This is infrastructure investment?

:17:44.:17:49.

important point in the road and rail infrastructure around the

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entire country that people used to. They are the unsexy, unglamorous

:17:54.:17:58.

schemes that bring the growth. There was an announcement from the

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Chancellor late last year of a whole lot of road and rail schemes.

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There was further announcements from the Transport Secretary about

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local authority schemes, we are doing that month on month. You are

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spending �32 billion on this mass you have why you, untested project,

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which is -- massive unrested project, which is unlikely to bring

:18:18.:18:22.

in the benefits the smaller projects could bring. There you

:18:22.:18:25.

could have the private sector involved, less money spent from the

:18:25.:18:28.

tax-payers. Let's not forget the higher taxes and national debt that

:18:28.:18:31.

will be needed to pay for this project will hit the economy.

:18:32.:18:35.

of all, we are doing both, the smaller projects and the large

:18:35.:18:39.

projects, not all the eggs in one basket. As I have explained the

:18:39.:18:42.

money from CrossRail we are spending will be transferred to HS

:18:42.:18:46.

on the budget line. We are not diverting money from anything else?

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You could transfer this money to something else. There is other ways

:18:50.:18:54.

of creating regeneration. Do you think there is any way of stopping

:18:54.:18:58.

this project? Absolutely. Legalle challenges? You picked up the point

:18:58.:19:03.

Earl -- Legal challenges? picked up the point earlier, the

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cost benefit ratio of this has gone down. It has progressively gone

:19:06.:19:11.

down every time the numbers are rework. Half of that benefit acues

:19:11.:19:15.

on the vacuous assumption that no businessman ever works on a trin.

:19:15.:19:18.

Clearly we can win the economic -- train, clearly we can win the

:19:18.:19:22.

economic argument because the with business case doesn't stand up.

:19:22.:19:27.

the political argument, prominent members of this Government in your

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area, they can't be very happy it, presumably, although they are loyal

:19:31.:19:34.

members of the Government? I can't talk for them. Riot along the route,

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those of us who have -- right along the route, those of us who have

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studied the route, know this is a really poor value for money, we can

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win that argument. These are very prominent members of the Government,

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we know some have been very vocal? If you were in the Commons today

:19:53.:19:57.

you will have seen a broad level of support from all three parties,

:19:57.:20:01.

four if you include the nationalists as well. Of course

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there were comments and criticisms and suggestions for improvements.

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It was a positive debate and people understand it. The concept has been

:20:11.:20:18.

bought by parliament as a whole. If the Scottish Government get

:20:18.:20:24.

their way, in autumn of 2014, a few weeks after the 700th anniversary

:20:24.:20:27.

of the Battle of Bannockburn, Scottish voters will decide whether

:20:27.:20:31.

the 300-year-old union should end, and two independent states should

:20:31.:20:38.

co-exist instead of the UK. Ours Scottish political editor joins me

:20:38.:20:43.

-- our Scottish political editor joins me from outside the Scottish

:20:43.:20:48.

Parliament. Is this August 14th date set in stone? As far as the

:20:48.:20:51.

Scottish Government is concerned it is. During the run up to the

:20:51.:20:55.

Scottish elections last year, it was thought a referendum would take

:20:55.:21:01.

place in the latter half of the current Holyrood term. He has

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announced tonightle following consultation with cabinet

:21:07.:21:10.

colleagues he has said autumn 2014. There is a consultation process to

:21:10.:21:13.

be launch very shortly on the nature of the referendum, the

:21:13.:21:17.

procedure of the referendum, then a bill to bring it about. And then

:21:17.:21:22.

there would be a breathing space to allow the voters to digest the

:21:22.:21:26.

concept and then you have the referendum itself. Course this are

:21:26.:21:31.

other issues to be borne in mind. First of all, why is he delaying

:21:31.:21:35.

the referendum at all. Believes the Scots will go for independence when

:21:35.:21:38.

they feel self-of confident and the current economic circumstances

:21:38.:21:41.

aren't there. Secondly, there is the issue Mr Salmond is not

:21:42.:21:45.

referring to atle all, which is the UK Government says his plans are

:21:45.:21:49.

illegal, but he is exceeding the devolved powers, he is simply

:21:49.:21:54.

dismissings that would a wave disDane. Whatever the legal

:21:54.:21:59.

position, -- wave of disDane. Whatever the legal position this is

:21:59.:22:03.

fraughter for the Government? they are seen to be interfering

:22:03.:22:11.

rather than inter veening, aglesive -- intervening, aggressively rather

:22:11.:22:16.

than in a constructive fashion, there is a danger are from the UK

:22:16.:22:21.

perspective of a backlash into Scotland. Would be seen as unwanted

:22:21.:22:25.

interference, since the Government here has an SNP ma rt Jo, which

:22:25.:22:30.

they won on the -- majority, which they won on the promise of a

:22:30.:22:34.

referendum for independent. You can say, at the very least, the people

:22:34.:22:44.
:22:44.:22:45.

Scotland were not deterred from the SNP's perspective. First of all, on

:22:45.:22:49.

this date, autumn 2014, is that fine with you? We want to have the

:22:50.:22:53.

referendum decideded and get on with it as soon as possible.

:22:53.:22:56.

I think the longer we delay, the greater the economic uncertain toe

:22:56.:23:04.

and the risk that those -- uncertainty and the risk it poses

:23:04.:23:09.

to jobs. What I said today in the House of Commons Scotland faces the

:23:09.:23:14.

biggest, hissorle kal political decision we will ever take as a

:23:14.:23:18.

country -- historical, political decision we will ever take as a

:23:18.:23:23.

country.Le Alex Salmond has said the debate is we will have it in

:23:23.:23:28.

autumn 2014? He has said he would like to do. Our first problem is

:23:28.:23:30.

the Scottish Parliament, as things currently stand, doesn't have the

:23:30.:23:34.

power to do this. We need to give them the legal basis for the

:23:35.:23:38.

referendum. What we're offering to do. You now have plenty of time to

:23:38.:23:43.

do that? What we are offering to do is work with them, so the Scottish

:23:43.:23:46.

people can have of confidence about the legal arrangements for the

:23:46.:23:50.

referendum. We want it to be a fair referendum. The way in which it is

:23:50.:23:53.

support by the Electoral Commission, the rules of it, are clear, and

:23:53.:23:58.

then we will get a clear outcome. Do you have red lines, things like

:23:59.:24:03.

you want a yes/no vot on independence, if there was a third

:24:03.:24:07.

-- vote on independence, if there was a third option would you not

:24:07.:24:11.

negotiate in the same way as you are suggesting? We have started a

:24:11.:24:14.

process of consulting with people across Scotland. As huge decision

:24:14.:24:18.

and we need to get it right and don't fall out about the process.

:24:18.:24:22.

There would be nothing worse getting to the end and deciding

:24:22.:24:25.

this in court rather than the ballot box. For each us in Scotland

:24:25.:24:30.

we need to consider that. I wo you say, from today, let's debate how

:24:30.:24:35.

we carry out the referendum. are not ruling anything out now?

:24:35.:24:38.

what we have said. Whatever your position legally, politically, as

:24:39.:24:41.

you know, Mr Salmond can make the running on this, it is very

:24:41.:24:46.

difficult for you actually to stop him? We recognise that he had had a

:24:46.:24:50.

very important electoral victory last year. He had had a significant

:24:50.:24:55.

pledge to ensure that there was a referendum on independence. We want

:24:55.:24:59.

to ensure, working with the Scottish Government that referendum

:24:59.:25:02.

can take place, without legal challenge, that the way in which it

:25:02.:25:05.

is carried out is fair, so the rules are clear, so the franchise

:25:05.:25:10.

is clear, and then at the end, we have a simple question that

:25:10.:25:13.

clarifies, is Scotland going to continue as part of the most

:25:13.:25:17.

successful partnership of nations in history, or go it alone. Indeed,

:25:17.:25:22.

all that said, still has you over a barrel. Even if this were a

:25:22.:25:25.

consultative referendum, even if you said it was not legally binding,

:25:25.:25:29.

politically it is profoundly important for all the reasons you

:25:29.:25:32.

have. Therefore, the Scottish First Minister, will, in the end, set the

:25:32.:25:36.

terms of? What I think the First Minister recognises, that we need

:25:36.:25:40.

to talk about this, we need to work together. What people will not for

:25:40.:25:43.

give politician, regardless of which parliament they long --

:25:43.:25:46.

forgive politicians, regardless of which parliament or parties they

:25:46.:25:53.

support, they will not for -- forgive us if the bickering and

:25:53.:25:57.

squabbling gets in the way of the future. I want to work with him to

:25:58.:26:01.

make sure it is done appropriately. Let's have a fair referendum with a

:26:01.:26:05.

clear set of rules. Let's have a straight forward debate about

:26:05.:26:10.

England in the UK or going it alone. Within, everything is pretty much

:26:10.:26:14.

much up for grabs there are no absolute noes in your position

:26:14.:26:18.

about the question. You are not going to say there can't be a third

:26:18.:26:21.

choice, you will not rule out autumn 2014, you are not actually

:26:21.:26:26.

going to lay down the law at all? What we have said today is we want

:26:26.:26:29.

a process that gets on with the referendum. I want that as soon as

:26:29.:26:32.

possible. The First Minister argues for to be in two-and-a-half years

:26:32.:26:36.

time. I think the longer we leave it, the greater the effect on jobs

:26:36.:26:41.

and people's livelihoods, that is not good for any of us in Scotland.

:26:41.:26:46.

We have said we want a referendum played by a fair set rules, that

:26:46.:26:49.

the Electoral Commission can superadvise and we can get on with

:26:49.:26:54.

the debate -- supervise, and we can get on with the debate without

:26:54.:26:57.

anyone having an advantage over anyone else. We have to be able to

:26:57.:27:00.

do it, at the present time the legal power doesn't exist, let's

:27:00.:27:03.

work together and establish that. To make sure in Scotland we have

:27:03.:27:06.

this decision which will be the biggest political decision of our

:27:06.:27:12.

lives in Scotland. It is important we get it right.

:27:12.:27:16.

It is not a relaunch, apparently, although it may look like one.

:27:16.:27:19.

After weeks of bad newspaper headlines and dismal personal

:27:19.:27:23.

approval ratings in the opinion polls, Ed Milliband tried to

:27:23.:27:27.

toughen up and reshape his image today, talking with difficult

:27:27.:27:30.

economic choices for Labour, and challenging the Prime Minister to

:27:30.:27:34.

bring on the battle about crony capitalism, but is anyone listening

:27:34.:27:39.

to the Labour leader. We look at the hard facts of opposition.

:27:39.:27:43.

The time until the next election, the time Ed Milliband has left to

:27:43.:27:47.

connect with and convince voters is ticking locally away. There is

:27:47.:27:51.

still a long time left, to be sure, but, by his own admission, there is

:27:51.:27:55.

a lot of ground to of cover. His first speech of the new year,

:27:55.:27:59.

at times, felt more like the first speech of a new leader, rather than

:27:59.:28:04.

one who has been in the job for over a year. I want to explain the

:28:04.:28:09.

principles, which will guide my leadership. I want to set out a new

:28:09.:28:13.

approach. Labour, said, had had to change are the party that ran

:28:13.:28:17.

Britain for 13 years. Sometimes in Government, it felt like, instead

:28:17.:28:22.

of building the new economy, we were patching up the unfairness of

:28:22.:28:28.

the old economy. Fairness wasn't hard wired into our economy and

:28:28.:28:34.

society. So that, as well as the necessity of the deficit we will

:28:34.:28:38.

face, means Labour needs a new approach. There were new policies

:28:39.:28:41.

today, like compelling the energy companies to you have the elderly

:28:41.:28:45.

their cheapest tarrifs. Buter for the most part, Mr Miliband was

:28:45.:28:49.

expanding on themes that we have heard before. Themes he said that

:28:49.:28:53.

David Cameron was now trying to steal. I say to the Prime Minister,

:28:53.:28:58.

who are you trying to kid? Nobody is going to be believe you came

:28:58.:29:02.

into politics to end crony capitalism. No-one will believe

:29:02.:29:09.

that is what gets you out bed in the morning. Now that he has

:29:09.:29:15.

accepted this is the battleground of politics, I say, bring on.

:29:15.:29:19.

Because Labour are the people that can show that we can deliver

:29:19.:29:24.

fairness in tough times, and we are the only party that can deliver

:29:24.:29:28.

fairness in tough times. But there is an uncomfortable

:29:28.:29:32.

question for the Labour leader. the polling seems to suggest that

:29:32.:29:36.

your messages on things like fairness, on the squeezed middle,

:29:37.:29:41.

on vested interests, on responsible capitalism, on the riots on Rupert

:29:41.:29:47.

Murdoch, are all chiming very well. Keep going. Chiming very well with

:29:47.:29:52.

the public, that same polling doesn't seem to suggest that your

:29:52.:29:55.

party or yourself are cutting through on the issues, why do you

:29:55.:29:59.

think that is? We had a terrible result in the 2010 general election.

:29:59.:30:04.

I think people sometimes forget about this, we got 29% of the vote.

:30:04.:30:09.

That is the second-lowest vote since universal suffrage was

:30:09.:30:15.

introduce. That is pretty bad, right I don't think anybody is

:30:15.:30:18.

saying we are at that position in the opinion polls. This is a party

:30:18.:30:22.

embark on a process of recovery, but it is hard, of course it is.

:30:22.:30:26.

The polling doesn't lock all that great for Mr Miliband, if you lock

:30:26.:30:29.

at the approval rates of other leaders of the opposition at a

:30:29.:30:33.

simple later point during their tenure, only -- similar point

:30:33.:30:40.

during their tenure, only Michael Foot and one other does worse than

:30:40.:30:44.

Mr Miliband. Political leaders need to do more than find popular

:30:44.:30:48.

policies. It is not that simple. It is not about the policies, it it is

:30:48.:30:52.

about the belief in the leadership of a political party and the leader

:30:52.:30:56.

themselves, increasingly, and their ability to make those thingsp

:30:56.:31:00.

happen. That is where Ed Milliband has a problem, in the same way as

:31:00.:31:02.

Neil Kinnock, people believed in many of the policies he was

:31:02.:31:05.

espousing in 1992, but he didn't become Prime Minister, because

:31:05.:31:09.

people didn't believe he would effectively put them into practice.

:31:09.:31:12.

In contrast, people thought many of the same things the policies Tony

:31:12.:31:15.

Blair proposed in 1997, but they did believe that Tony Blair would

:31:15.:31:19.

make them work. The danger for the Labour leader is

:31:19.:31:24.

that a media narrative develops, small Tories magnified into a

:31:24.:31:27.

crisis of leadership -- small stories magnified into a crisis of

:31:27.:31:33.

leadership. We have to buy shares in Miliband

:31:33.:31:37.

ban, at the moment people think are thinking -- Ed Milliband, at the

:31:37.:31:40.

moment people are thinking is it worth it, down the road will he

:31:40.:31:44.

leave me better off in the future. At the moment people don't have a

:31:44.:31:47.

clear idea of what Ed Milliband is about. That had come, it would have

:31:47.:31:52.

been foolish to flesh out the ideas in the first 12 months. Now we are

:31:52.:31:57.

in the second year of the full year of the Ed Milliband leadership it

:31:57.:32:02.

can't come quick enough for me. Leader of the opposition is one the

:32:02.:32:08.

hardest job in politics. Even so, would be very helpful, in silencing

:32:08.:32:11.

his critics, if Ed Milliband could show a bit more progress on the

:32:11.:32:15.

journey back to power. Rachel Reeves, saw on the end of

:32:15.:32:19.

the report, is the Shadow Chief Secretary to the Treasury. Can you

:32:19.:32:24.

help us out as to what your party for, in this age of no of-money

:32:24.:32:28.

politics. In terms of the Government's tax rises, and the

:32:28.:32:31.

Government's spending cuts, what could you guarantee to reverse, if

:32:31.:32:35.

you get back into power? That is the thing, we can't guarantee to

:32:35.:32:38.

reverse in of the cuts, or any of the tax increases, that the

:32:38.:32:42.

Government have put through. And that's because we now know, because

:32:42.:32:45.

the Chancellor got up and said it in his Autumn Statement. That after

:32:45.:32:48.

the next election. There is nothing the Government is doing that is bad

:32:48.:32:52.

enough that you could say we have to reverse that, not a single

:32:52.:32:55.

thing? We don't know what the economic situation would be in the

:32:55.:32:58.

next election the after the last election, the Conservative and

:32:58.:33:02.

Liberal Democrats said they would eliminate the deficit by theen the

:33:02.:33:06.

parliament. We know -- by the end of the next parliament, we know

:33:06.:33:09.

will be well into the next parliament. It would be

:33:09.:33:12.

irresponsible in the economic environment we face to reverse any

:33:12.:33:17.

of the cuts. Your party, Alistair Darling said you would cut it in

:33:18.:33:21.

half by the end of the part, you have abandon that? We haven't

:33:21.:33:25.

abandoned that. You know how to cut the deficit then? What we said at

:33:25.:33:29.

the last election, and it was said, we would half the deficit during

:33:29.:33:33.

the course this parliament. That is a �40 billion difference between

:33:33.:33:35.

what the Conservatives and Liberal Democrats were doing, compared to

:33:35.:33:39.

us. Let's remember, at the Autumn Statement, Osbourne born had to

:33:39.:33:45.

admit this country -- George Osborne had to admit this country

:33:45.:33:49.

would be borrowing more than they plan, not because they haven't

:33:49.:33:52.

increased taxes or cut hard enough, but unemployment is rising and

:33:52.:33:57.

there is not enough taxes. interesting for people watching is

:33:57.:34:01.

you were very clear in the last 18 months, this Government is reckless,

:34:01.:34:05.

cutting too far, too fast, you are very clear on that, but you are not

:34:05.:34:09.

clear on what you would do? They are cutting too far and fast. The

:34:09.:34:13.

result of their decisions means the economic recovery, which was under

:34:13.:34:17.

way a year of-and-a-half ago, has been choc off. The result is rising

:34:17.:34:21.

unemployment, more than a million young people out of work, growth

:34:21.:34:24.

flatlining. You can't say what you would reverse, if you are right,

:34:24.:34:28.

you must be able to say and give us some idea what you would change?

:34:28.:34:31.

we were in power today, we would implement a five-point plan for

:34:32.:34:36.

jobs and growth, to get the economy back on track, to get unemployment

:34:36.:34:39.

down, to help small businesses with a national insurance holiday, to

:34:39.:34:43.

help those young people. Also, crucially, by getting jobs and

:34:43.:34:47.

growth back on track now, that will help reduce the deficit, because

:34:47.:34:51.

more people in work paying taxes, more businesses succeeding, means

:34:51.:34:55.

less out in benefits and more in tax. Isn't a fundamental problem

:34:55.:34:58.

for the Labour Party, for years, going back to the Second World War,

:34:58.:35:02.

is you are fine for good times, but when the times are really tough, as

:35:02.:35:07.

they are now, you cannot handle austerity, you don't know what to

:35:07.:35:11.

to? Which is why the speech today was so important. What Ed set out

:35:11.:35:14.

is under the last Labour Government, under Tony Blair and Gordon Brown,

:35:14.:35:18.

we had had rising prosperity and economic growth. You could use that

:35:18.:35:22.

process of growth to invest in the schools and hospitals and implement

:35:22.:35:25.

policies like taxed credits. That will be very difficult and

:35:25.:35:29.

difference after the last election. How did it take 18 months to figure

:35:29.:35:35.

that out. Liam Byrne left a note when he left, saying, I'm afraid

:35:35.:35:43.

there is no money. Everybody got it. We set out plans for halfing the

:35:43.:35:46.

deficit in the parliament. Ed Milliband set out today what Labour

:35:46.:35:50.

would do in building a fairer, more responsible capitalism, that

:35:50.:35:53.

delivers for ordinary working families. You are going to reform

:35:53.:35:56.

capitalism, but you can't tell us how much you would do in tax rises

:35:57.:36:01.

and cuts? We can't say that because we don't know the economic

:36:01.:36:07.

situation at the last -- to the next election. But you can reform

:36:07.:36:10.

capitalism? The Chancellor said he would get rid of the deficit in

:36:10.:36:15.

this parliament and now says in the next parliament. It would be

:36:15.:36:18.

irresponsible to is the out economic policies for the next

:36:19.:36:23.

election. On the police we said we would cut the police spending by

:36:23.:36:27.

12% compared to the Government's 20%. We have plans to reduce the

:36:27.:36:31.

deficit. But we can't, three years ahead of the general election, give

:36:31.:36:35.

you a detailed spending commitment. What does the reform of capitalism

:36:35.:36:39.

mean and what does it look like? you look at what is happening at

:36:39.:36:42.

the moment. Ordinary families seeing bus and train fares

:36:42.:36:46.

increase,en gee prices increase, VAT going up, the biggest squeeze

:36:46.:36:51.

in living standards for a gin racial. People on the boards of our

:36:51.:36:54.

biggest country got a 49% pay increase. You will legislate to

:36:54.:36:58.

change all this? First of all you have to give shareholders more

:36:58.:37:01.

power, that is what David Cameron is saying as well the but two

:37:01.:37:06.

things in addition it that, to make this really work, to put on the

:37:06.:37:10.

remuneration committee of the companies, a person from the work

:37:10.:37:13.

force. And also to have transparency, everybody is who is

:37:13.:37:19.

paid over �1 million has the pay publish, and you pub the ratio

:37:19.:37:24.

between top and lowest paid -- put the ratio between top and lowest

:37:24.:37:28.

paid. We will have a something for something culture, not just rewards

:37:28.:37:32.

for failure at the top, rather than everyone else facing the squeeze.

:37:32.:37:38.

Right now, in fact, in Newham shur, the polls are still open as

:37:38.:37:42.

Republicans choose who their candidate will be to beat President

:37:42.:37:47.

Obama in the presidential election. The favourite is, undoubtedly, Mitt

:37:47.:37:52.

Romney, from Massachusetts, who narrowly won in Iowa. For all his

:37:52.:37:58.

money, a quarter of a billion of personal fortune. He failed to get

:37:58.:38:03.

the nomination in 2008, and's struggling to seal the deal with

:38:03.:38:06.

voters. The question is -- and he's struggling to seal the deal with

:38:06.:38:12.

voters. The question is why. In a vital New Hampshire contest,

:38:12.:38:17.

the view voters in dixville Notch, went to the polls last night. In

:38:17.:38:21.

the coming weeks, Mitt Romney has to convince, not just the folk from

:38:21.:38:25.

New England, where he feels atm ho, but Republicans in South Carolina,

:38:25.:38:31.

Florida and other more difficult states. It will not be easy.

:38:31.:38:36.

The former Governor of Massachusetts, who eliminated a $3

:38:36.:38:40.

billion deficit, Romney was a successful business leading a

:38:40.:38:46.

private equity firm. He made billions of dollars in what is

:38:46.:38:50.

called "restructuring companies", opponents call him a greedy asset

:38:50.:38:57.

stripper. A group of corporate raiders, led by Mitt Romney, more

:38:57.:39:02.

ruthless than Wall Street. For tens of thousands of Americans, the

:39:02.:39:06.

suffering began, when Mitt Romney came to town.

:39:06.:39:11.

Mitt Romney compounded his own problems with outbreak of foot-and-

:39:11.:39:15.

mouth disease. I like to fire people who provide service it is me.

:39:15.:39:19.

I know what it is like to worry about fired, there were a cop of

:39:19.:39:25.

times I wondered would I get a pink slip. The simple truth is, after

:39:25.:39:29.

looking him over for some years, some Republicans don't like him,

:39:29.:39:34.

his career, his personality, or misMorman faith. Plus Mitt Romney's

:39:34.:39:38.

hault care plan was very similar to that of Barack Obama. Something

:39:38.:39:42.

that is toxic for many Americans. Beyond that, there was the rather

:39:42.:39:45.

weird matter of governor Romney strapping the family dog on to the

:39:45.:39:51.

roof of his car for a 12-hour drive to Canada.

:39:51.:39:53.

Bill Clinton once told New Hampshire voters he would be with

:39:53.:39:58.

them until the last dog died. Mitt Romney you may be the last

:39:58.:40:02.

Republican standing, but will his party ever learn to love him the

:40:02.:40:09.

The former Governor of Minnesota and one-time Republican

:40:09.:40:16.

presidential hopeful, has joined me from New Hampshire. What was it

:40:16.:40:22.

that Republicans don't get or like about Mitt Romney? I think that is

:40:22.:40:29.

really a false premise, if you look at what happened, Mitt Romney

:40:29.:40:35.

unexpectedly on Iowa, that was a tremendous accomplishment. No

:40:35.:40:38.

Republican nominee has won Iowa and New Hampshire, in the modern

:40:38.:40:44.

history of the country. In the holes he's ahead in South Carolina

:40:44.:40:49.

and to say he's not getting support from Republicans is inaccurate. It

:40:49.:40:52.

is hard to break-away from the field when you have six or seven

:40:53.:40:58.

candidates, his message of private seceror leadership. Somebody not

:40:58.:41:01.

embracing the notion that America is in decline, is resonating, you

:41:01.:41:05.

will see that in the results in New Hampshire tonight. What made you

:41:06.:41:13.

change your mind about him. You talked about a year ago about

:41:13.:41:18.

Obamnicare, as if his healthcare plan was the same as Obama, that is

:41:18.:41:22.

toxic from some voters' point of view? On the issue of healthcare, I

:41:22.:41:28.

spent some time talking to him about this. He's committeded to

:41:28.:41:32.

repealing Obamacare, he said in his first few days of office he would

:41:32.:41:36.

issue executive orders to repeal it. He doesn't believe what he did in

:41:36.:41:40.

Massachusetts should be visited upon the nation at a federal level.

:41:40.:41:46.

He thinks each state should decide. I'm comfortable with the repeal

:41:46.:41:52.

Obamacare. If you look at the debate, the most steady person in

:41:52.:41:56.

the debate, the strongest position to take on Barack Obama. One of the

:41:56.:42:00.

most pressing issues for the country is growing the economy. The

:42:00.:42:03.

private sector economy, Mitt Romney can do that, Barack Obama has no

:42:03.:42:07.

clue. One of the problems, however, is a former Republican candidate

:42:07.:42:14.

put his fringeer on a couplele of years ago, -- finger on a couple of

:42:14.:42:17.

years ago. Mitt Romney doesn't look like the type of guy you would

:42:17.:42:21.

socialise with, but the type of guy who would close your factory. That

:42:21.:42:28.

is a problem for him? I grew up in a meat packing town, my dad was a

:42:28.:42:33.

truck driver for a long time, my mom died when I was young, we saw

:42:33.:42:37.

the shut down of many factories. We need somebody in office who knows

:42:37.:42:41.

how to get it this private economy moving again. That is not Barack

:42:41.:42:44.

Obama, the country has seen that. They know that Mitt Romney can do

:42:45.:42:49.

that. It is one of his strengths, actually. We shouldn't have this

:42:49.:42:52.

class warfare discussion, that is what democrats do, we should be

:42:52.:42:56.

about growing the pie overall, not have people fight over shrinking

:42:56.:43:01.

slices of the pie. You may be right, and your own personal story is very

:43:01.:43:04.

compelling, but Mitt Romney's is very different. He's one of the

:43:04.:43:07.

richest guys who has ever run for the presidency in recent years, for

:43:07.:43:13.

a major earth a, some people just don't like that? We don't have

:43:13.:43:16.

class warfare, that is what Barack Obama says. Newt Gingrich seems to

:43:17.:43:21.

disagree with you, I have been look at the Newt Gingrich ads, he seems

:43:21.:43:25.

to think you have class warfare? Very disappointing that Newt

:43:25.:43:30.

Gingrich or other Republicans would be criticising private enterprise.

:43:30.:43:34.

Criticising private investment. We should have a debate on the facts.

:43:34.:43:39.

They are taking the comment that Mit made, and the clip you played

:43:39.:43:43.

out context. You didn't play the whole clip. It was about Mitt

:43:43.:43:46.

Romney arguing being able to choose between healthcare companies, the

:43:46.:43:50.

question was asked in that context and he answered in that context,

:43:50.:43:54.

didn't say he just wanted to fire po. He was talking about people

:43:54.:43:59.

having a choice to choose health insurance companies. The clip you

:43:59.:44:02.

played and others played it are taking it out context. You are

:44:02.:44:07.

right the context. His rivals and Rick Perry is another one, says the

:44:07.:44:10.

only pink slips Mitt Romney worries about is having enough to hand

:44:11.:44:14.

out,s the kind tone of this campaign. Within the Republican

:44:14.:44:19.

party, which will be pick the up been I -- will be picked up by the

:44:19.:44:23.

Democrats in the autumn? You think in the light of day, when people

:44:23.:44:26.

see the facts, that he was talking about health insurance companies,

:44:26.:44:30.

will be fair about it. We have people exploiting it in this moment,

:44:30.:44:34.

in the end facts matter, the truth matters, the truth is he was

:44:34.:44:36.

talking about health insurance companies. Look at some of the

:44:36.:44:40.

other candidates as well. They all have their own challenge, Mitt

:44:40.:44:44.

Romney will be a great candidate and great President, he's not

:44:44.:44:47.

perfect. Beau but all the other candidates have concerns that

:44:47.:44:52.

people have expressed as well. will need a great vice-president,

:44:52.:44:57.

will you be that person? Your audio is cutting out on me a bit. If you

:44:57.:44:59.

are asking me about the vice- president position, that is

:44:59.:45:04.

something I won't consider, I have been down that road before with

:45:04.:45:09.

John McCain, I was honoured to be considered then, my job here is to

:45:09.:45:11.

help Mitt Romney as ale volume toorment

:45:11.:45:18.

Now a quick look -- as a volume toor.

:45:18.:45:28.
:45:28.:45:50.

Now a quick -- volunteer. Now a That's all topt, I'm back tomorrow.

:45:50.:46:00.
:46:00.:46:23.

Until then, -- tonight, I'm back Ap colder end to the week, a mild

:46:23.:46:29.

day on Wednesday. Mild, windy in the far north, and wet and dampness

:46:29.:46:35.

in the north England and Wales. Head down across the Midland, parts

:46:35.:46:39.

of north-east England. East Anglia and southern England, another

:46:39.:46:43.

lovely day. Broken cloud, rather more sunshine than on Tuesday

:46:43.:46:47.

across the south. Light winds shooting up into double figures.

:46:47.:46:53.

Ridiculous for the time of year, I'm sure you will agree. Across

:46:53.:46:57.

parts of England, elsewhere, cloudier, with dampness across snow

:46:57.:47:01.

downia throughout the day. Across the Irish see, some dry weather, a

:47:02.:47:05.

lot of cloud, drizzle from time to time. For Scotland, after a

:47:05.:47:09.

brightish start, will turn increasingly cloud kwhree, windy

:47:09.:47:15.

and wet. Particular -- wind cloudy, windy and wet. Particularly in

:47:15.:47:19.

association with a wet front. Introducing brighter conditions

:47:19.:47:23.

from the north, but chillier conditions as well. Bright, crisp,

:47:23.:47:29.

sunny end to the week for man places. Temperatures will take a

:47:29.:47:33.

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