11/01/2012 Newsnight

Tonight, the battle to prevent the break-up of Britain, has now begun.

The Prime Minister says he cares passionately about keeping the

country together, and insists that Westminster has the legal right and

duty. To call the shots over the referendum on independence. We will

ask Scotland's First Minister if he is so confident of winning the vote,

why can't compromise with Cameron. The new bad boy of Europe is told

its economic policies are sustainable and it is drifting into

authoritarianism. Hungary's row with Europe could

shake the very foundations of the European Union itself.

One man's murder raises new questions of foreign intervention

in Iran. A fourth nuclear scientist has been

assassinated in Tehran, might this be one case where Iranian claims of

an Israeli plot are quite rightment Later:

Newsnight proudly presents, in premier vision, David Cameron's

quest to mould the movie business. We will be discussing how to fund a

hit movie with writer producer, David Baddiel, at producer bridge

gent Jones Diary, Jonathan Cavendish.

Good evening, there was a rare moment of agreement between the

Prime Minister and the leader of the opposition today, both David

Cameron and Ed Milliband said that keeping Scotland in the UK is good

for all of us. That, of course, is not how it is seen within the

Scottish Government, where the First Minister, Alex Salmond,

suggested Westminster politicians butt out, of what he calls

interference in Scotland's affairs. MrLe Salmond told Newsnight tonight

of his of confidence in winning the independence referendum when it

comes. Getting this thing painted was long

seen as an impossible task, the vital rail link between Edinburgh

and the north-east, defied all efforts to keep it looking the part.

But they persevered, just as the never say never attitude of

Scotland's nationalist leader might be paying off. Indeed, no paint job

in the world could conceal Alex Salmond's trade mark grin, as

Scottish independence went to the top of the political agenda. We, on

this side of the House. The subject loomed large in the first Prime

Minister's Questions of the new year. With the Labour leader

possibly trying out slogans for the coming pro-union campaign. We are

stronger together, and weaker apart. The Prime Minister was all obliging,

temporary powers would be giflted to Holyrood -- gifted to hollyed

road, allowing the referendum to go ahead. The legal clarification an

attempt to put Mr Salmond on the spot. There have been too many in

the SNP happy it talk about the process, they don't want to talk

about the substance. I sometimes feel when I listen to them it is

not a referendum they want, it is a neverendum.

Of course, David Cameron won't so lightly dismiss the SNP's leader,

who swept to power in last year's Scottish election, under a system

set up to prevent an outright majority. Such an opponent is being

treated seriously here, I'mle told it is because the issues involved -

- I'm told because the issues are involved are so important that

Chancellor George Osborne is spearheading plans to keep the UK

together. His involvement also reflects the fact that senior

Westminster Tories, don't exist north of the border.

Indeed, they have been as close to extinction as these beasts, newly

resident at bed are you ra Zoo, the great panned -- at Edinburgh Zoo,

the great pandas are pulling in the crowds.

Alex Salmond is hoping the referendum in 2014 will help voters

flock to his cause. He's also coming out against the

Thatcherism view that Tories know best. The Tory Government knows it

can't look like it is dictating terms to Scotland. What it will be

doing is using the consultation process, that has just been launch,

to convince voters they have far more to lose than gain by

independence. They will be targeting the SNP's

wish to put the option of devolution max to the voters. This

would involve greater powers for Holyrood, short of separation.

Westminster would like to see a simple yes or no vote, Scotland in

or out of the UK. But would a referendum actually be legal? The

two sides don't agree. It may be a couple of years if Alex Salmond

sticks to his plan, before he introduces his bill into the

Scottish Parliament, and we know the wording of his proposeded

referendum question. Only then can that -- proposed referendum

question. Only then can that be referred to the courts. If the UK

officers stick to their legal advice, they will be obliged to cha

eing it. A bit like the iterimably unpainted bridge, there are many

decisive factors in the outcome the UK is - that are being sought.

There is a preference for sterling to the euro. Would the banking

crisis need an interference. There are a whole set of questions about

revenues, who owns the North Sea oil, lawyers could be busy for

decades arguing about the division of the spoils. The current union

between Scotland and England has lasted 300 years. After such a long

marriage, separation will be difficult, something a Royal

Commission is need -- some think a Royal Commission is needed to

decide how the assets might be split. People haven't taken the

option of real Scottish independence seriously enough in

the past, the pieces of work that we need to see don't exist. I

haven't seen a feasiblilty study on the cost of moving our nuclear

weapons somewhere else in the UK, how much that would cost. Even on

one question, we don't have any of the details we need to know about

what independence would mean. Scotland might surprise you.

Whether you are after dramatic scenery, or dramatic scenes. This

TVad, launched later this week, will mark Scotland's year of

culture and creativity. But it is hard fact that is will now be

occupying both sides of the referendum campaign. Not least the

polling evidence, which has consistently shown the Scots won't

vote for independence. The SNP claims that's changing. I have seen

an open mindedness that I have never, ever seen before. I think it

is incredible. People will willing to listen and be persuadeded. We

have seen people move in all the polls and even social attitude

surveys are showing that people are moving away from opposition to

independence, to open mindedness, or for full square independence.

Last month, the Christmas present for Scotland, the Forth Bridge was

finally repaint. Satisfaction is being felt in Downing Street too,

whatever battles lie ahead, Alex Salmond naming a referendum date,

means the debate about independence can truly begin.

Just before we came on air, I spoke to Scotland's First Minister, Alex

Salmond. First Minister, is it an issue of principle with you that

devo max, a fiscal independence, as it is called, more devolution

should also be on the ballot for yes or no to independence? No, our

issue of principle is that independence will be on the ballot

paper, yes or no, but what we have said, we cannot see any reason for

ruling out, at this stage, what is a perfectly legitimate strand of

opinion in Scotland, and we are in the business of being inclusive and

including other strands of opinion, not excluding them like the Tory

Government in Westminster. It is seen as a fallback position for you,

because you know independence itself is not particularly popper

later. More devolution is popular, with -- popular, more devolution is

popular, it is your second choice and what you have got? Or David

Cameron is frightened of having it on the ballot paper because he

thinks it will pass, or have the Scottish Parliament organise our

referendum, for which we have a mandate, in 2014 because he thinks

independence will pass. They may well be frightened of a range of

things. I know independence is getting further support in the

polls tomorrow. I'm very confident we can win an independence

referendum. Why doesn't Downing Street just let the Scottish

Parliament get on with it, and have a referendum, and have a result,

and people and politicians can follow the will of the people.

will of the people, are you possibly in danger of misreading

this mandate, it is a mandate clearly for you to ask people what

they think about independence. But it is certainly not a mandate to

ignore the Westminster Government, or the Prime Minister of the UK, is

it? After the election last year, David Cameron was quite explicit,

he said the Scottish Parliament, the SNP have won a mandate to

organise a independence referendum, and the Westminster Government

won't disappear. They said to let the mandate be carried forward to

the Scottish Parliament. It it is the Prime Minister trying to

rewrite the rools but trying to pull the strings of -- rules by

trying to pull the strings of the Scottish referendum from

Westminster. The last time a London politician thought she new best in

Scotland, it didn't have a great result for Scottish MPs. You are he

can sueding a great deal of confidence about win -- he can

sueding a great deal of confidence about winning the referendum, why

not just have a yes, no debate on independence? We said we would

publish the consultation document in a few weeks time. We will give

the community of Scotland an opportunity to comment on what they

would like, as well as the SNP Government, what they would like.

We will legislate next year to have the referendum in 2014 in a proper

and orderly manner. The last referendum Downing Street organised,

was the AV referendum, that was organised in a to thelally

disorganised manner. With -- totally disorganised manner, and

the liberals were truly kippered by the Tories. I'm not Nick Clegg.

the issues of the date, you said in 2014, does it really matter the

date of 2014, in other words, are you open in this consultation

period, during which, undoubtedly you will hear from Michael Moore,

the Scottish Secretary, are you open to changing that date?

these things must be decided by the Scottish Parliament. I'm willing to

talk to the Prime Minister, of course, and I will put forward the

view, look our point of principle, there just has to be a referendum

built and made in the Scottish Parliament for the Scottish people.

Because the people best able to do that, are the people who have a

mandate in the Scottish Parliament, and then it will be decided on by

the people Scotland. The people best able to decide the future of

had country, are the people who live here. I notice that tomorrow

morning's Times has a story that Downing Street is warning that an

independent Scotland might have to join the euro as a price of

independence. What do you make of that? Stuff and nonsense, Sweden is

a country which had accession to the European Union after these

rules, and of course, Sweden is not a member of the euro, furthermore

Scotland wouldn't be applying for membership of the European Union,

we are already in the European Union. It would be up to the people

of Scotland. The euro currency, is it your aspiration to join that, or

is the pound good enough for you at the moment. Will the pound be good

enough for you in the foreseeable future? We would stay with sterling

until the people Scotland would decide in a referendum. A position

not dissimilar to other parties in these islands. A final thought,

quite clear from what Michael Moore, the Scottish Secretary is saying,

and David Cameron in the Commons today, that they believe under the

1998 Scotland Act, they are effectively right. It is not

interfering, it it is their duty and right to discuss this with you

in the way they are proceeding. Will you publish your legal advice,

which seems to suggest something slightly different? They haven't

published the legal advice, just said what they think it is. The

Professor of Constitutional Law at Edinburgh University, has agreed

with our legal opinion on these matters, and a consultant on the

referendum the Scottish Parliament has sway. I'm prepared to talk to

anybody about these things, as long as we are not dictate to, we are

not told what to do, we are not having our strings pulled from

London. We are not going to be bullied and intimidate. We have a

mandate to conduct and hold a democratic referendum in Scotland

the that is exactly what we will do. If it is to be done as a legally

binding referendum, so be it. But not with strings attach, not

Downing Street telling us who and how people will vote, and how it

will be organised. These things will be built and determined in

Scotland. Thank you very much for joining us.

The European Union has a new problem child tonight, Hungary, the

EU is thinking of withholding funds for what it sees as Hungary's

failure to get to grips with economic problems, and fears the

country is sliding away from the rule of law and towards right-wing

populisim. We're in Budapest now. What has been the reaction to these

threats from the EU? The EU threat, primarily, centres on Hungary

breaching the budget rules, the 3% deficit rule. They have the power,

if that is the case, to withdraw structural fund, or withhold them.

That would be serious for Hungary, it it is about 2% of GDP, and more

or less the only source of funding for businesses at the moment. On

top of that, this is another big stick, that is the IMF, currently

grilling one of the Hungarian ministers in Washington, and it is

going to impose more austerity on the country, as a price for what

the markets see as the inevitable bailout this country will need. The

reaction has been anger by the far right. The Government refuseded to

even acknowledge it, but the party -- refused to even acknowledge it,

but the Fidesz Party called for a demo in two weeks time. Most in the

markets think it will end up with a climb-down, but it is damaging for

the Prime Minister, who has staked his whole future on defying the

authorities. Given Hungary's dire economic situation, it could

default and it could have a knock- on effect for other countries in

Europe? There is feeling the Government is toying with theed

idea of defaulting, they have studied Iceland and Argentina, that

is something some Government people are briefing, that if we go we take

down the whole Europe. They are not big enough to do that. The bigger

problem is they are in breach so much else, says the EU, in terms of

politics, in terms of the rule law, in terms of the rise of the far

right, that really is the biger cultural and political background

to the crisis. As I have been Hungary is a country where

austerity start early and never stopped. Its currency is collapsing.

Its population in the sixth year of crisis, and weary of it. Now, it is

dawning on them that the Government they elect to sort things out is

becoming the pariah of Europe. Today Hungary's parliament was told

that major laws it has just passeded might be illegal, and its

budget is in breach of the EU rules. In the space of 18 months, the

Prime Minister has achieved a lot. He has introduceded a flat tax,

which handed money to the upper- class, but put a hole in the

country's budget. To fill the hole he nationaliseded the private

pension scheme. To prevent a challenge to that, he neutralised

the constitutionlal court, and he has changed the law to give himself

a near permanent majority here in the national parliament. And then

he has asked the IMF for $20 billion.

The Prime Minister was elect in 2010 on a platform of no more

austerity, but to deliver that, he has had to impro-advise to tax the

banks, large companies, to improvise, to tax the banks, large

companies. Last week tens of thousands of Hungarians took to the

streets, support what they see as the Prime Minister's coup, NGOs,

youth, the usual noises in protests, these voices find little support

within the system. This man a leading MP in Hungary's

Green Party, he reflects a generation in despair. I think that

the Prime Minister more or less left, or lost reality. He is

closeded into a very small circle of adviser, and he really doesn't

understand what's going on. Elect to fight on pollution and

climate change, Hungary's youngest party now has to teach its

political elders orthodox economics. He they turned their attention to

the national bank, the Central Bank, which has a reserve of 35 billion

euros. Half of it would be enough to finance the state budget in 2012.

It is extremely dangerous, the reserve of the national bank is the

last anchor, or the last backing of the Hungarian authority, if they do

that, I think there is no further stop before the bankruptcy.

But it is not just money at stake. Club Radio, is the only radio

station openly critical of the Government, and reported the

protests in depth. Now its license has been revoked. Meanwhile, here

at the state TV station, some journalists are on hunger strike

after one of the Government's critics had his face blur out of a

news report, Soviet-style. I have been working in the public media

for the last two decades. I must say that was always a kind of

influence trying to meddle in the things the public media, from any

Governments we had. But what happened since the change of

Government, they are not just trying to make favourable reporting

in the public media for the Government, but they are even

distorting factsment they are falsifying reports. That is facts.

They are falsifying reports, that is the upper limit of the

thresholds. The people werele sold the idea that Europe meant

prosperity. Despite an export boom, growth has never been high enough

to support a welfare state and lower taxes. Now, as in Italy and

Greece, they are facing economic slowdown and a debt crisis. But

there is a crucial difference. On the Danube, technocratic Government

has already been tried. Since we are living in a democracy, it is

finally a technocratic Government, followed by a Government elected by

the voters. The question is how the voters will react, and what type

Government they will choose. This is a questioner for all the

countries where a technocratic Government is operating now, but

the question is what will happen after. The answer in Hungary was a

swing to right, that brought the Prime Minister to power, that swing

to the right may have further still to go.

This is the Hungarian guard, allied to the far right opposition party,

explicitly hostile to the Roma community, and at times, openly

anti-semetic. It is riding high in the polls. Forced it disband its

militia, it still has an image problem. Its presidential candidate

told the Israeli ambassador that Jews were lice invested dirty

murders. You don't worry at your -- murderers. You don't worry about

your own election candidate using the word such as "lice" and "Jews"

is anti-semetic? It is unfortunate terminology. It does not excuse her,

it was a private exchange of letters. It is no excuse. At one of

Hungary's most prestigious theatre, they will find out what it is like

when this opposition party takes control. Here, they are rehearsing

a play by Thomas Mann, soon there will be no Thomas Mann, no

Shakespeare, the company's director has been sacked to be replaced by a

part man, pledged to produce Hungarian -- party man, pledgeded

to produce only Hungarian plays. TRANSLATION: In my 13 years here,

we put on 50 Hungarian playsment but we also want to be open to the

world. But it is important that the balance between national and

international. We just cannot close our window to the world. Next year

the actors will be asked to perform the work of a Hungarian writer who

supports anti-semetic views. Under pressure from the far right and

European centre, the Hungarian Government feels friendless. We are

open for dialogue and we are part of a family. We are part a

community. We want to abide by the rules, and if there is a problem,

that again, as I said before, we have a legal order, to rectify such

problems. The strength of language in the international community is

not just about economic, it is about the Central Bank, the media

law, it it is about the closure of radio stations. It is about putting

far right actors in charge of major theatres? Then you refer to major

theatres, you probably refer to a single smaller thee tr,

representing less than 1 -- theatre, representing less than 1% of the

called Hungarian theatre market, if I put it that way. When you speak

about the media law, you forget that the European Commission made

some observations and suggestions and all of these suggestions were

immediately adopt and incorporated in the amendments the legislation.

Do you see the point, though, the interle national community are

worried the erosion of -- international community are worried

about the erosion of checks and balances. They see the far right

party applauding what you are doing? The far right party is

violently disagreeing with us. They disagree with us practically on all

economic and political points. The agreement with the IMF we are

working on, they completely reject that, they demand, First Minister,

non-payment of debts, and such absurdties, and impossible things.

In the late night bar of Budapest, life goes on. This begin never knew

communism, but it is getting know economic nationalism well. The

promise was that the European Union would guarantee liberal social

values, democracy and prosperity. All of that is now in question.

I'm joined now by Hungary's ambassador here, on the national

consultative body for Hungary's new constitution.Ed good evening. How

is it -- good evening, how is it in such a short space of time your

country has managed to offend human rights activists, the EU, the

markets, about what is going on in your country? Let's start with the

facts, my background is economy, so I will start with the economic

facts rather than political. When you look at the country you look at

four or five major indicators. The budget deficit in Hungary this year,

for 2011, is below 3%. Only seven countries in the whole of Europe

can deliver that. The European Union average is 6.6%, and your

country, the UK delivers 10%. bond yields are 9.5%, completely

unsustainable, we can go through lots of economic figures. We know

your currency is declining also. You need IMF money. You will have

to change to get it? We have to get down to the basics. When we

negotiate with the IMF or the EU, we are negotiating in issues of

economic policies, and what kind economic policies can deliver

results? Again, budget deficit. We have still a 1.5% GDP growth, that

is the third quarter data. You have 0.5%. But we're not being grilled

by the IMF at the moment for money, we are not being told by the EU

they will withle hold funds. You are in -- withhold funds. You are

in real trouble, why aren't you facing up to it? We are. Why don't

you change law, independence of the Central Bank people are asking for

it? Have you read the letter that we got from the ECB, because they

had 15 issues in had their letter, 13 has been enshrine. They had two

issues, still under debate. One is suggested exactly by the Brussels

authorities, that we face, globally, a systematic risk. This is why the

national banks, or the central banks, and the financial

supervisory boards could work closely together, to make sure that

the macro Prudential issues are dealt with. Out of the 15 it is

only two. Although they are considered very significant by the

IMF. To of move to the wider points here, the real problem many

observers see, the judicial system has been limit, new judges helping

the Government, the Electoral Commission back packed with

Government supporters, the new media law, none of fitting with a

modern European democracy. Did you hear my Foreign Minister. I did?

said in the spring the media law was scrutinised by the European

Commission, there were suggestions, in two weeks time Hungary made the

necessary decisions. Club Radio is still close, Hillary Clinton asked

that independent radio stations? Club Radio applied for a license,

they failed to measure up to the legal obligations, or criteria.

was nothing to do with the fact that they were critical of the

Government. Why would Hillary Clinton want you to owe reopen this

radio station. Why would Hillary Clinton among others suggest

reopening the radio station, saying independent media would be a good

idea? Next time Club Radio, when it comes to the next licensing round,

they should apply, but Hungary is a country of the rule law. Everybody

has to abide with the rule law. are changing the rule law, you are

packing the courts? No, no, no. Let me guff you an example, what I love

-- let me of give you an example. What I love in this country and the

US, you have a long history of building institutions. Two examples

are from the UK. We're very familiar with the UK position, but

it is really your own position, we love our institutions, but it is

your institutions? We have to establish institutions.

Unfortunately, every fourth year, every election, the old one

abolishes what the former one did. This is why we need a you new

system. The new constitution was presented to the committee, the

underlying statement was that the constitution represents a

democratic constitution baseded on the rule of law. All the words --

based on the rule of law. All the words were appreciative, and we had

all the words considered. Have you seen it? I will send a copy for you.

You must have been surprised with the reaction so manyed bodies, with

the suggestion that -- many bodies, with the suggestion that it is not

good? When I talk about the economic facts and documents and

facts in our correspondence between Brussels and my Government then you

come back to these kinds of accusations. My Government is based

on facts. I think that the committee's opinion is right. I

know that there are many political adversaries, it is a values issue,

values are represented in the political sphere. Often times

talking about institutions. It is like the Scottish election.

sure the Scots will love that. Thank you very much.

Coming up in a moment. Will films like this meet David Cameron's idea

of a likely box-office hit. So, qualifying for taxpayer funding.

First the mysterious and violent death of yet another Iranian

scientists working on the country's nuclear programme. It reads

something from a spy thriller, Iran accused the Americans and they

robustly denied any American involvement. We tried to find out

what is going on behind the usual diplomatic exchanges. What happened

in Tehran? This is an attack of the kind that is seen before. The

scientist professor, Mostafa Ahmadi Roshan, was attacked in his car, by

people in a motorcycle who attached a bomb to the car, turned away, and

shortly afterwards the bomb went off killing the scientist and his

driver. If we look at the wreckage, you can see a directional type of

device, which has left the head lamps and various other parts of

the car intact. But served its purpose of killing the people

inside without causing any real risk to bystanders and others. A

sophisticated attack. The Iranians have blamed Israel for all kinds of

things, why are they particularly concerned about Israel in all of

this? There clearly is a group of nations acting to try to frustrate

their nuclear ambitions. Now, today, the US issued a particular de --

denial. I want to categorically deny any United States involvement

in any kind of act of violence inside Iran. We believe that there

has to be an understanding between Iran, its neighbours and the

international community. That finds a way forward, for it to end its

provocative behaviour. Mrs Clinton's statement very

carefully worded there. Any US involvement, for example, not using

proxies, in any act violence. So the role that the US, or the UK may

play in frustrating Iran's ambitions through covert action,

might be limited to denying them certain access to materials that

might have nuclear uses. Perhaps using computer viruses, that type

of thing. The Israeli role, people in the secret world, are quite

unambiguous about it, does include this programme assassination. Now,

they are acting, I'mle toll, through Iranian prox -- I'm told,

through Iranian proxies. This started two years a the first

scientist was killed. He was killed by a bomb in a motorcycle beside

the road, that exploded as his car pass. Several months later, a

double attack, Majid Shahriari was killed, but another scientist was

seriously wound in identical attacks to today. Bombs with

magnetic devices being clamped on to cars and then going off. Last

year a further attack, a shooting attack, and today's as well. Now,

it is widely assumed within the intelligence world that the

Israelis are doing it. They are using Iranians toer carry out the

bombings. While -- to carry out the bombings, while the Iranians know

who they are carrying it out for. Does it make a military attack on

Iran more likely? Military action does seem increasingly likely,

because of the alarming rise in tensions in the region. People say

the US will not resolve whether or not to use action on the nuclear

point until after the next general election. There is so much going on,

flash points and other incidents, there could be military action

before then. On the one hand, might seem like a

statement of the obvious, with cash very tight, the Prime Minister

today suggested that any investment in British films should be to

mainstream films more likely to become hits at the box-office. If

the Prime Minister knows the secret to producing and predicting hits,

would be good to know what it is. A film about a television presenter

talking it a retired politician, might not at first have seemed the

hit that frost/Nixon had become. Well talk to two producers with

different points of views. This report contains flash imagery.

Tonight, in a time austerity. Newsnight proudly presents, in

super-sharp, premier vision. One man's qs to mould the movie

business, the The Director's Cut. Hor ray for Pinewood, perhaps the

close -- hurray for Pinewood, perhaps the closest thing that the

English film industry has to a home. It makes �4 billion a year. Like

ale Hollywood player, David Cameron was on the lot today, gladhanding

film makers, then ruthlessly mixing art house and experimental movies

in favour of block busters. I ask the right honourable gentleman,

whose fault is that? Very likely the Prime Minister, the current one,

was thinking of smashes like The Iron Lady, which took more than �2

million at the UK box-office when opened last weekend. A Tory peer,

and Oscar-winning screen writer, seemed to share Mr Cameron's view

of cinema. I had been critical of theed idea that all public money

should go into minority and obscure films, it is in the interests of

the industry and the public that we start building up and making more

films that people want to see. It doesn't mean they are the only

films we should make, I don't want to be sort of cornered into saying,

it has to be nothing but rom-coms and blockbusters, we don't want

that, we want a broad range, but we want to build our audiences and

international audiences. This is the kind of oven-ready globaler,

that gives British films the bad names. The Sex Lives of the Potatop

Machine, we think it is getting its greatest *Ever audience right now.

We wouldn't miss stuff like this. A Government review, out next week,

is expected to back funding of films with mainstream potential.

What are we film fans to make of the Government's policy on the

movies? Fbgts Is it going to be sin -- is it going to be cinema para it

diso, or the Last Picture Show. This is a film made with no starsa

no sound. Can I have one for The Artist. If I pitched you a film

about a Prince's speech defect, or a couple of guys living in the

slums of Bombay. You wouldn't have thought commercial, they made

millions of pounds, and won Oscars, I would like to know what is

commercial. Commercial means business, he wanted to fuel the

entreprenurial spirit, we have to be incredibly like that to get the

films made, given the economics. What we are asking and hearing the

review may deliver, is a better way to use public money to make

business grow and do better. Film buffs have been on social

media sites all day, suggesting highly-fundable sounding titles,

such as The Royal ska. Monty. Newsnight has acquired a leaked e-

mail about the movies Downing Street would like to see. There's

Something About Maggie, Ice Cold On skal Alice. Free skal school Willie.

We want to see films that audiences want to see, we also want to

stretch the audiences as well. And do something that is a broader

cultural content. If the Prime Minister gets his way, the range of

British films may get narrower, with apologise to Billy Wilder's

classic, Sunsetp Boulevard. movies are still big, it is the

budgets that got smaller. With me now are two film makers

from opposite side of the funding scales, David Baddiel, a writer and

director, and Jonathan Cavendish, producer of Bridgette Jones Diary.

-- Bridgetp Jones Diary. There is a limited amount of money, should it

go to the mainstream? Yes, I think there are a few complicate issues

here, which Camion is skating over. The new -- Cameron is skating over.

The new BFI, a commission were reporting on Monday, with very good

people sitting on it. It is Lord Schmitt from the British Film

Institute? Very sensible people. They are not going to stop the

support of new talent, they will not stop culturally important

movies. They will support the British Industry as best they can.

A bigger issue is how to get the Government, whose interest in the

film industry is to be applaud, how we can get them to hp us build a

big and sustainable -- help us build a big and sustainable

industry on the back of all the talent we have in this country.

Stkph they are talking aboutle value for money, in effect, -- they

are talking about getting value for money in effect, and maximising

returns, and people are in favour of that. Is he on to something?

He's on to something, it is glib, but he's on to something. What I'm

excited by is the Government have turned their attention to the film

industry, which has, in the past, been reviewed as a bit of a cottage

industry. Saying we have the best people in the world, the films make

a lot money, as very profitable business. Let's get institutions in

the City, for example, to back British film companies and British

film makers. Ken Loach today said that, the trouble is, it is all

about maximising profit, that is the wrong way to go, because we

will be culturally poorer. Are you worried about some of this?

problem is what constitutes commercial viability as far as

David Cameron might think it. The film I made last year, or two years

ago, it was funded independently, privately, cost �1 million, it has

taken $5 million worldwide, it is commercially viable, in his terms.

It it is about a Muslim who discovers he was born a Jew. I was

convinced at the time, because people did say no, that if I took

this to the quango, whatever it is set up by David Cameron, looking

for commercial viability, they would say it is not a commercial

idea, and it is niche, it turns out not to be true. You got it made,

because you are good at these things, you didn't need the money?

We did need the money. The money took a while to come in and people

took risks on it. The point being, I'm an independent film maker,

different from Ken Loach, I am interested in the films beingp

popular, people coming it see them and it being a -- being popular and

people coming to see them and it being a mainstream thing. That

being discovered by David Cameron and a bunch of people looking at

pictures thinking what constitutes commercial film is doubtful. They

will go on what happens before, that is not the way to make art or

find popular films. There is a point there, the idea of

Governments or anybody in a quango being able to spot a hit when

nobody else can, including film makers, it it is hard to have a hit

or not? Nobody knows anything in the movey business, as William Gold

beman said, I don't think David Cameron will go and run the FMI,

and the money will increase after the Olympics. I think it is a bit

of a scare story. The real thing is we go on supporting our young film

makers. I have just started a new company with Andy Serkis, it is a

technical company makes performance capture films. Next year we are

making a film with a director who made his first small film, The

Escapist, supported by small arts groups. Went on to make The Rise of

the Planet of the Apes. We will come back next week and adapt a

famous book, that is how works. Whatever criticism Cameron gets, I

wonder might itp help the film industry immensely to say this is a

major employer, and industry, we are really good at it in this

country, sometimes going abroad, but we are really good. At a time

when he has to cut everywhere, it might project some of the money?

This are lots of ways of funding films, in Denmark and France France

they have a levy, meaning 12% all films have to be French ordainish.

There is a notion -- or Danish, there is a notion that we shouldn't

have English films because we have American films.

The thing is, film is an incredibly vietlal thing. Gradually it seems

to me that we are building up films that people do want to go and see.

One of the good things what Cameron said, drawing attention to The

King's Speech, does suggest that if, for example, 12% of the cinemas did

just show British films, people would go and see them now. They

would, five or ten years ago they probably wouldn't, there is a

groundswell really good British films. There are some very good

people out there. Crucial low, foinlally, lots of very good

British pro-- finally lots of very good British producers thinking

about the audience, using great writers and fantastic actors,s

becoming extreme low profitable. This austerity cull -- extremely

profitable. This austerity culture, the film Friday can't be immune

from that? It it is not, one of the things that tends topp happen, is

there used to be tax breaks to help people invest in film, those have

all gone. People areer worried about it. What I think should

happen is there could be more radical ways creating a market and

creating money it flow into British film that weren't just having to

provide Government money, which has always been very small in this

country compared to other places in Europe.

A quick lock at the front pages. That's all tonight, Emily is here

A windy night expects across Scotland, fusy winds. Easing

through the morning, behind a band of rain pushinging through England

and Wales -- pushing through England and Wales. Brightening up

sunshine from the rest of the day. Tolder weather following from the

weather front, straddling across southern parts of England drurg the

afternoon. Thicker cloud in places, -- during the afternoon. Thicker

cloud in places. Sunny spells possible. You will notice colder

conditions starting to work into the north of Wales, not desperately

chilly at this stage, with it comes a bit more sunshine. Northern

Ireland, after some early morning cloud, long spells sunshine, taking

you right through the day. Aed good dole sunshine through central,

southern -- a good deal of sunshine through central and southern

Scotlandment watch out for wintry showers, the -- southern Scotland.

Watch out for wintry showers. A frosty start for Friday, one or two

lingering fog much patches particularly across North West

England and Wales. The big changele really will be noticable across

southern areas, the temperatures Thursday around 10-11, Friday sixes