04/03/2012 Sunday Politics Scotland


04/03/2012

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Good afternoon and welcome to the Sunday Politics. Our top story.

:00:39.:00:43.

Could wrangling in the coalition over the budget end with a new

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mansion tax and the scrapping of the 50 p tax rate? I will be

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speaking to the new Lib Dem Business Minister Norman Lamb.

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Alex Salmond tells me he is so confident of winning a referendum

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on Scottish independence, he will kick off the yes campaign this May.

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Scotland's First Minister joins us for the Sunday interview.

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As the price of petrol reaches record highs, should the Chancellor

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cut fuel duty? A petrol head and a green campaigner go head to head.

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And our political panel of the best and brightest, here every week to

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analyse British politics in the week ahead and tweeting throughout

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the programme. Scottish Labour shrugs off the sackcloth and ashes

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as Johann Lamont talks wealth redistribution, social justice and

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re-engaging with the unions. And was Lib Dem leader Nick Clegg

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feeling the love at the party conference in Inverness, the former

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Apology for the loss of subtitles for 1492 seconds

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stronghold wiped out in the People are spending more. Clothing,

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food, household goods. You have moved the money from

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spending on flu ordure t two spending on other things. What to

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be wrong with that? If you look at the long term, if you are going to

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spend money on things like this, you should spend it on getting

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people out of car dependency. Any cut is just going to be followed up

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by speculation. What you need to be spending money on his reversing bus

:27:33.:27:43.
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cuts, cutting inflation and rises in train fares. If you have not got

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a car, and you local bus service has been cut, you cannot go

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anywhere at all. A most of us do have a car, why should we have to

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pay more than our European neighbours? I would accept the

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delay in any further increase. But a cut is effectively Government

:28:03.:28:11.

spending. That should be spent on getting us out of this problem.

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will give people a relief that socially. Since 1997, the overall

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cost of motoring, unlike the public transport sector, has fallen.

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that to the people who write to me who are saying that because the

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commute, they have had to give up their job. It as a deeply serious

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issue that is the emasculating the economy, stopping people going to

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work and interviews. High off of all -- half of all families in

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poverty do not have a car and that is made even worse by the lack of

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public transport. We have got to develop a transport system, but it

:29:06.:29:11.

will take as 10 years and probably 100 billion it to do that. It is

:29:11.:29:19.

important that the catch up. A cut in fuel duty would not help that.

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But it would help ordinary families. He so would organising better bus

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services. We have to have other ways of getting about. It will cost

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hundreds of billions of pounds. doing are gradually, it would be

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affordable. It is laudable and we should be doing it, but that will

:29:46.:29:56.
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not help now. We used to see that it was almost... Their due duty is

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lower in real terms and it wasn't 2009 so you have had your cut.

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of the price of fuel goes on tax. It does make business more

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expensive. It is making us less competitive. Few prices will only

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go up and the future. In that long term, we needed to reduce their

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dependence of our economy on oil. How would you pay for it? You have

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to find the money to pay for the fuel duty? A I would increase

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economic activity. By reducing duty,... We will have to leave it

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:30:59.:31:05.

Good afternoon and welcome to Sunday Politics Scotland. Coming up

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on the programme. Scottish Labour and the Lib Dems are in conference

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groove this weekend. What plans and policies are they hatching? Johann

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Lamont joins us to explain Labour's new strategy here. Off with

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sackcloth and ashes and on with social justice and equality.

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And as Scotland fights to be the location for the UK'S first green

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investment bank, the Lib Dem leader Nick Clegg tells us it could be

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built on Mars, what matters is where it invests. And I am in Wales

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to find out why the Scottish referendum has got this country

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talking about its own political future.

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When Labour gathered in Dundee on Friday, their UK leader Ed Miliband

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wanted to talk about the economy. But off-stage, the issue of

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Scotland's constitutional future just wouldn't go away. Johann

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Lamont used her first conference speech as leader to announce a new

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commission on further devolution within the UK. Niall O'Gallagher

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Labour say their position is not desperate. But they have not got

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much to laugh about after last year's defeat in the local

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elections. That would simply guarantee another defeat. The

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threat so to Scotland are two great and the risks are to deal for

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Scottish Labour to settle for a quiet life of decline and a defeat.

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We need it to change and change radically, not to disavow our

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greatest beliefs. Scotland is giving Ed Miliband a headache. He

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knows the independence would make it difficult for him to become

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Prime Minister. But he is also concerned about plans to devolve

:33:09.:33:19.
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further tax to Holyrood. The SNP say that be want Scandinavian level

:33:19.:33:27.

of public services. But you cannot create that if you are asking for

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Irish levels of corporation tax. That is the reality. Then came a

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plea to Scottish voters not to accept the Nationalist portrayal of

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England as a Tory nation of. must reject attempts to divide our

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country by ideology or geography. We are not left wing Scotland and

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right wing England. We are one Ed Miliband largely stayed away

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from the debate on more powers for Scotland in the United Kingdom and

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whether support for such a question should be on the referendum ballot

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paper. But his remarks on Labour's Scottish leader Johann

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Lamont went to Aberdeen University to read the future of their video

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games industry. It will have to be if the manoeuvring over Scotland's

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future is set to dominate her leadership. She allows a commission

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to look at devolution would they mack the United Kingdom. Our ideals

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endured. But we have to strengthen the United Kingdom and Scotland's

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place in Ed. Before we do that, we must take to the country the case

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for Scotland remaining in the United Kingdom. Labour did not want

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to spend this conference talking about the constitution. But with a

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referendum on the horizon, they did not have much choice. We insist

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that they are united on the issue of more powers, but we still do not

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know what kind of devolution settlement they will be arguing for

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when the referendum comes. Johann -- a Johann Lamont joins us

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live now. What kind of radical proposals were you be coming up

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with? I said that the choice in powers is not about how many powers

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we can gather at the Scottish Parliament, it is about what works

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in the interests of the people of Scotland. The devolution commission

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will look at everything, tested against the evidence of their

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impact on people's jobs and the economy. And corporation tax?

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feels to me, and this is the case that we will look at, if you have

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corporation tax, the only people that benefit are those who do not

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want to pay corporation tax. It feels a good deal for businesses

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but not for public services. But we will look and examine in detail the

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consequences of this. You could always a raise corporation tax?

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could raise corporation tax. You will end up at the same place

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however. You will have competition across the United Kingdom. I am not

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sure that is a rational way to run the economy. I did say that London

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is one of the strongest and wealthiest hubs in the world. And

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we are going to go into competition him with London and? Just to

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clarify here, are you saying that if you raise corporation tax in

:37:15.:37:25.
:37:25.:37:27.

Scotland, you will have competition across the UK? The logic of having

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corporation tax set at different levels across the United Kingdom or

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feels to me that we will end up in a place with wasteful competition.

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And a race to the bottom. But we will interrogate those options,

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look at and examine the consequences of any of these models

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other Test will be, is it in their interest of the people of Scotland,

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will it create jobs and a stronger economy? I am sorry for the delay

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on this line. You were talking about London being one of the

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richest international hubs. It is quite a tricky area for Labour to

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go into. You said, London is one of the register international hubs,

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you could go down the road of perpetuating the myth of saying

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that Scotland is too poor to compete? I do not accept that. The

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United Kingdom is a partnership, we work in corporation. Where there is

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lead, resources are distributed towards that made. That seems to be

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to be a logical and rational. It is all the if you define yourself

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entirely within the countries within the United Kingdom that that

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it becomes at are the core concept to hold onto. In a difficult

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economic times, coming together is the best place for the people of

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Scotland. I am not talking Scotland down. The people of Scotland may

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choose to separate from the rest of the United Kingdom, but we have to

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have a rational debate about the strengths of being part of the

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United Kingdom and the consequences of separation. He two-thirds of

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people questioned recently said they wanted more taxation powers to

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go to Holyrood. That is why I have established a devolution commission

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and why I am committed to looking at those are right. It is not about

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accumulating powers in the Scottish Parliament, it is how those powers

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are used to. Do you their tax take has to be higher than it now is?

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think we have to look at how, employ of times, we spend our money.

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Equality is not just for when the sun shines. But you come out Lyme

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how you want to spend it, but how do you want to raise it. -- outline.

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You have a very ambitious programme of what you want to do. People will

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be wondering where that money will come from? Should the tax take the

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higher? The if you have a strong economy and strong economic

:40:17.:40:23.

activity, you will have more money to spend. That is the impact.

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in the meantime? Until then, we have to do with the situation that

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we are in. The difficulty that I think we have a relation to council

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tax, the Scottish government is committed to a council tax freeze

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but they are not funded it. That is the challenge that our councils are

:40:40.:40:50.
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us facing at this time. Should we be looking at them, when it

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Scotland is considering where it goes, should we be looking at

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targeting businesses more, raising corporation tax? Troubles the sort

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of areas that should be looked at? I think you have to look at all of

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these things. There was something you said in your speech that you

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were going to look at the whole system of selecting candidates, how

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they come forward and how the party brings them on. You said that the

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party machine could stifle talent, what did you mean by that? I think

:41:41.:41:45.

like all political parties we end up becoming obsessed with the

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machine and the bureaucracy of making decisions when in fact

:41:49.:41:53.

people want to be engaged with the political debate and active in

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understanding how people live their lives. We need to open up our

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structures. It does mean that unless you are prepared to sit

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through 100 different meetings about matters arising you tend to

:42:07.:42:12.

think you will perhaps not bother. We need to create a culture that

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refreshes the idea of why political parties exist and encourage people

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to engage in politics. That is really part of the whole of our job.

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In terms of who actually goes on to represent Labour in Scotland, do

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you think that sitting MPs and MSPs should be more open to challenge

:42:34.:42:38.

rather than the situation at the moment where they just get rubber-

:42:38.:42:45.

stamped by the constituency party? No one who has a Labour candidate

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or or Labour elected member has a job for life. Any Labour candidate

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has to earn the right to be a candidate. How do you enforce that

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practical issue? I think we have to set a standard and engage with our

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elected members. We have spoken about contracts for elected members

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which I think is one way that it can be done. It is critically

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important that elected members are engaged with and involved with

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their constituents and also in engaging with the important

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political debates of the day. terms of setting standards, Eric

:43:27.:43:31.

Joyce says he will not contest the next election, do you think he

:43:31.:43:38.

should stand down before then? have been very clear that the

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allegations made against him suggest an abuse of trust in his

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position. We cannot make him stand down but I think people would

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expect him to do the right thing. Which in your opinion is to stand

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down? I think the people of Falkirk deserved a representative that

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reaches the standards we would expect of somebody in elected

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position. So is that a yes that he should stand down? It is my view

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that he should stand down but that is not under my control. I believe

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that his actions are those of someone who is not fit to represent

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people. Are you confident that you would win a by-election there if

:44:27.:44:31.

Eric Joyce stands down as you want? We are confident in Labour's

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message. All will we lost the last election we did not lose our values

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or our commitment to the people of Scotland. That is the case we

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should take to the people if there is by election. Her have you spoken

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to Eric Joyce? No. So how have you managed to satisfy yourself as to

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his version of events before you make a decision to that he should

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stand down now? What I have said is that if the allegations are true

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then in my view he is not fit to be a Labour candidate for a Labour MP.

:45:10.:45:16.

Can I ask you about D Green Investment Bank, do you think the

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referendum debate makes that more or less likely? I think in general

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terms the debate on the referendum must now move beyond process. I

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have said I want a referendum earlier rather than later because I

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am concerned for the uncertainty and businesses have come out and

:45:34.:45:39.

said that in recent weeks. We need to get on to the core of the debate

:45:39.:45:49.
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as to what Scotland would look like in the case of independence. You do

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not have a debate as to whether Scotland being independent would

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sweep the Westminster banks? I am supportive of the United Kingdom,

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Scotland strong, and shading the benefits of investment across the

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UK. I would clearly prefer Scotland within the United Kingdom with a

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green investment bank coming to Scotland. 500 days rather than

:46:20.:46:25.

1,000 days after the consultation ends, is that a timescale you would

:46:25.:46:30.

time -- sign up to? I started off with my new year message which

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feels like a very long time ago seeing that we should make 2012 the

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year of the referendum. The process should be started and we should

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make a decision in 2013. I think it is a debate that needs to be

:46:45.:46:52.

brought forward. Thank you very much indeed. The issue of

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independence has also been a central thread running through the

:46:57.:47:07.
:47:07.:47:10.

Liberal Democrats' Scottish conference. Activists say the party

:47:10.:47:15.

is bouncing back from its drubbing in last year's Scottish

:47:15.:47:21.

parliamentary elections. A striking combination of plush visuals and

:47:21.:47:28.

knife-edge drama. Not quite the Lib Dems Scottish conference but the

:47:29.:47:36.

venue shows films to. After their dismal showing in last year's

:47:36.:47:42.

elections this could have been the main showing this weekend but the

:47:42.:47:48.

party seemed to have a spring in its step. We got a drubbing last

:47:48.:47:54.

year, there are no two weighs about that. We did not put our message

:47:54.:47:57.

forward terribly well. People are picking themselves up and getting

:47:57.:48:03.

on with it. What has been exercising the minds of the party

:48:03.:48:08.

faithful this weekend? The elephant in the room is one the Liberal

:48:08.:48:13.

Democrats did not invite, the SNP plans for an independence

:48:13.:48:17.

referendum, that has popped up in just about every single keynote

:48:17.:48:24.

address. I C two D SNP, quit stalling, let's work together, get

:48:24.:48:28.

the wheels in motion and allow people to decide their future in

:48:29.:48:38.

500 days. -- I say to the SNP. timing of the referendum should be

:48:38.:48:44.

dictated by Scotland's national interest. My hope and that of my

:48:44.:48:47.

party is that the people of Scotland choose to stay within the

:48:48.:48:52.

United Kingdom. As an English man I believe that our countries are much

:48:52.:48:57.

stronger together than they would be a part. We all in Scotland want

:48:57.:49:02.

to get on with this debate. Let's have it sooner rather than later.

:49:02.:49:07.

It seems to me perfectly adequate that we could do this within 500

:49:07.:49:16.

days. We do not need to wait the best part of three years. Despite

:49:16.:49:23.

this eagerness to push Alex Salmond towards an early poll in the

:49:23.:49:28.

corridors and bars I felt a lack of buyers at this conference. The

:49:28.:49:32.

speeches and debates were worthy and largely well attended but where

:49:32.:49:37.

was the passion? I do not think Liberal Democrats get up and shout

:49:37.:49:43.

about it, they get on and do it. I had a good conversation with Vince

:49:43.:49:48.

Cable which was gentle but informative. That is our starting

:49:48.:49:52.

block. We are not going to get up and shout, we are quietly

:49:52.:50:01.

passionate. Politicians have got their heads buried in the sand. We

:50:01.:50:06.

have to try every avenue we can to get them to wake up and changed

:50:06.:50:11.

policy, change direction and stop wrecking our heritage. You can

:50:11.:50:15.

often judge party conference by the number of exhibitors or lobbyists

:50:15.:50:20.

keen to push their point of view and products. You in Inverness this

:50:20.:50:26.

weekend they seem to be a bit thin on the ground. I think it is a bit

:50:26.:50:33.

quieter than in Perth last year. There are certainly more people but

:50:33.:50:37.

there seems to be less of the third sector, the voluntary sector this

:50:37.:50:46.

time round. The party in Scotland has moved on from the shock of last

:50:46.:50:52.

May when their number in Holyrood was sliced from 17 to just five.

:50:52.:50:59.

That was then, this is now, say activists. The council elections

:50:59.:51:04.

beckon in just a few weeks and the Lib Dems are confident. The theatre

:51:04.:51:10.

posters may just see it all. I spoke to Nick Clegg just after his

:51:10.:51:15.

speech. He opened by saying liberals from the Highlands and

:51:15.:51:20.

Islands have always been at the heart of the party. So, was the

:51:20.:51:27.

loss of every seat in the bastion of Highland liberalism a price

:51:27.:51:35.

worth paying for a coalition Government? If anyone has an easy

:51:35.:51:38.

alternative to the current economic plight of the country stick it on a

:51:38.:51:43.

postcard and send it to me. The Two's says there are no easy

:51:43.:51:49.

solutions. We have inherited this economic mess from Labour where the

:51:49.:51:55.

banks gorged themselves on bonuses and pushed the economy right to the

:51:55.:52:00.

edge. We in this Government happen to be dead people who have to start

:52:00.:52:06.

putting the pieces back together again. It requires unpopular

:52:06.:52:12.

decisions and controversial decisions. My judgment is doing

:52:12.:52:18.

best repair job to the economy is our first duty. I make no apologies

:52:18.:52:23.

at all in seeing that four time to time it is not bad for politicians

:52:23.:52:29.

to do the right thing. It might not easy to do the right thing in the

:52:29.:52:32.

national interest. I certainly feel that even those people who were

:52:33.:52:39.

angry last year are at least now prepared to accept the motives of

:52:39.:52:43.

the Liberal Democrats entering the coalition when you compare what is

:52:43.:52:53.
:52:53.:52:53.

going on in other countries of the eurozone, ours are good motives.

:52:53.:52:58.

we look at how some Liberal Democrats in Government conduct

:52:59.:53:06.

themselves, you mentioned Danny Alexander, you said he is good at

:53:06.:53:12.

negotiating with the unions, do you sense there are many Lib-Dem voters

:53:12.:53:17.

who feel that Danny Alexander has engaged in union-bashing with

:53:17.:53:24.

unseemly haste? First, I would suggest a little sense of humour is

:53:24.:53:32.

always worthwhile. Not nesses sadly when pensions are going down the

:53:32.:53:42.
:53:42.:53:45.

stream? -- ness Sally. -- necessarily. The pension system we

:53:45.:53:55.
:53:55.:53:59.

inherited is widely recognised to be unsustainable. I think what

:53:59.:54:02.

Danny Alexander has done in negotiating a fair pension

:54:02.:54:07.

settlement with the trade unions is to guarantee public sector pensions

:54:07.:54:12.

to remain among the best pensions available in the UK. It is an

:54:12.:54:18.

incredibly Porter and.. You casually suggest that somehow

:54:18.:54:22.

public sector pensions are being decimated, they are actually being

:54:22.:54:32.
:54:32.:54:33.

retained as some of the best. We do not have anything remotely like the

:54:33.:54:42.

pensions elsewhere. Someone like Danny Alexander is especially

:54:42.:54:52.

favourable and protective to get a progressive and come. People in the

:54:52.:54:58.

Highlands, if there are boundary changes, whose lines do you think

:54:58.:55:08.
:55:08.:55:10.

time best with the voters here in the Highlands? I think both China

:55:10.:55:20.
:55:20.:55:22.

with they're voters. But to do you think will win? I am not going to

:55:22.:55:25.

pretend that they are at the opposite ends of some political

:55:25.:55:33.

scale. Perhaps they both believe it is important for people in politics

:55:33.:55:42.

to combine something that is unique to the Liberal Democrats. There is

:55:42.:55:47.

nothing feared by simply struggling -- shrugging your folders and

:55:47.:55:52.

saying we will get our children and grandchildren two p of this debt.

:55:52.:55:56.

We have to do the hard work for the future demonstrations -- future

:55:56.:56:06.
:56:06.:56:08.

generations. The Liberal Democrats have a progressive instinct to

:56:08.:56:18.
:56:18.:56:19.

reform the pensions and tax needs. You say you are not stopping at the

:56:19.:56:28.

Scotland Bill. Is it being overtaken effectively? No. It would

:56:28.:56:32.

be very odd to spurn the Scotland Bill when it is the largest

:56:32.:56:37.

transfer of money since the Act of Union. Why not tell people who you

:56:37.:56:42.

are actually? That is like seeing if you are on a journey you should

:56:42.:56:47.

not take the first step because you may not take the last step.

:56:47.:56:53.

Devolution is a process, not a tablet of stone. It is a process

:56:53.:57:00.

and a debate. If you look at Catalonia in Spain. It is a

:57:00.:57:05.

constant shifting debate about how many powers devolved from the

:57:05.:57:10.

centre to the nations. My own view, very clearly, is that you cannot

:57:10.:57:18.

have that debate. Liberals believe in home rule long before the SNP's

:57:18.:57:24.

began debating for independence. We set up a commission to seek to

:57:24.:57:29.

define what home rule looks like. You cannot really have that debate

:57:29.:57:36.

of further devolution to Scotland or for that matter, Wales, until

:57:36.:57:46.
:57:46.:57:49.

you know whether the United Kingdom Without for one moment it turning

:57:49.:57:58.

one's nose up at a Scotland gaining far greater authority over how

:57:58.:58:03.

money is raised at unspent. Scots cannot make up their mind about

:58:03.:58:06.

whether they want to stay in the United Kingdom unless they have a

:58:06.:58:13.

very clear idea about what the options will be if they say no to

:58:13.:58:17.

independence. Perhaps it is about treating the electorate in Scotland

:58:17.:58:27.
:58:27.:58:30.

as adults. What the SNP is suggesting, that you put the

:58:30.:58:39.

prospect of independence on the ballot paper, and then you put them

:58:39.:58:43.

further options on devolution. That is mixing things up and is somewhat

:58:43.:58:53.

cynical in I -- in my view. It is if they do not have the courage of

:58:53.:58:56.

their convictions. They want to take out an insurance policy at the

:58:57.:59:03.

same time. If you have those two Questions, and everyone says yes to

:59:03.:59:13.
:59:13.:59:16.

both, which one do you pick? The experience I have had from

:59:16.:59:20.

referendums and observers also say this, if you want to be grown up

:59:20.:59:24.

with the electorate, give them a simple choice on a key question. Do

:59:24.:59:28.

not mix things up. I think everybody can understand that.

:59:28.:59:34.

There is a simple chronology. First, decide whether Scotland remains in

:59:34.:59:38.

the United Kingdom, then have this debate which we are kick-starting

:59:38.:59:44.

hear about further devolution of powers to Scotland. If you look at

:59:44.:59:51.

the Calman Commission and the Scotland Bill... You think progress

:59:52.:59:56.

is a rapid and radical? If you look at the progress from the

:59:56.:00:01.

establishment of the quarry rid of Parliament through to the Scotland

:00:01.:00:10.

Bill in a matter of years, compared to hundreds of years of nothing

:00:10.:00:18.

moving at all. Could you explain your comment about not putting

:00:18.:00:25.

Scotland in a box? The choice of taking Scotland out of the United

:00:25.:00:29.

Kingdom or keeping things as they are, just advocating the status quo

:00:29.:00:36.

would be like putting Scotland in a box. If we move onto the green

:00:36.:00:45.

energy statement, how do deliver that agreeing economic renaissance?

:00:45.:00:51.

We are delivering that already with hundreds of millions of pounds of

:00:51.:00:55.

investment into Scotland, producing hundreds and thousands of jobs. We

:00:55.:01:03.

are innovating as a government, setting up a green investment

:01:03.:01:09.

bank... Is that definitely coming to Scotland? That announcement will

:01:09.:01:18.

be made to by Vince Cable. If you want a renaissance in alternative

:01:18.:01:22.

energy in Scotland, that would be a logical thing to do? There is

:01:23.:01:27.

competition between different cities and towns over who is to

:01:27.:01:32.

host the Green Investment Bank. It could be located on Mars, it does

:01:32.:01:42.

not really matter, because what it does is provide money for renewable

:01:42.:01:51.

energies. If we get it right, it could mobilise about �15 billion of

:01:52.:01:59.

money. A real cream investment revolution. And Scotland has these

:01:59.:02:06.

fantastic natural resources, almost unparalleled in the world. But the

:02:06.:02:09.

government pulled their funding from the Longannet project on

:02:10.:02:17.

carbon capture. That project did not work in the way in which it had

:02:17.:02:26.

been designed. There was a considerable amount of money

:02:26.:02:36.
:02:36.:02:38.

invested. I personally believe that carbon it capture projects are

:02:38.:02:44.

incredibly important. Talking about her energy bills, in the Highlands,

:02:44.:02:54.
:02:54.:02:59.

the fuel duty a reduction, Charles Kennedy is saying this should be

:02:59.:03:04.

extended throughout the whole of the Highlands. In Caithness and

:03:04.:03:10.

Sutherland, people have to travel for greater distances. Wherever you

:03:10.:03:15.

go and the country, people see it would be good to extend it. If I

:03:15.:03:19.

asked my constituents in Sheffield, people would say it would be nice

:03:19.:03:24.

to have a fuel duty exemption in South Yorkshire as well. Fuel is

:03:24.:03:31.

very expensive or. We have the highest prices ever. But the pilot

:03:31.:03:35.

that Danny Alexander has pioneered is incredibly important and he has

:03:35.:03:41.

made a compelling and successful case that is the areas to which it

:03:41.:03:50.

applies face quite a unique challenges. So that is a negative -

:03:50.:03:55.

- and no to the rest of the Highlands? We will have to see how

:03:55.:04:03.

the pilot works. On Friday, a conference hosted by

:04:03.:04:06.

The Times in Edinburgh debated the future of the Union. The Sunday

:04:06.:04:08.

Politics met up with constitutional experts, economists and leading

:04:08.:04:11.

politicians who debated the issues to sample their views on the future

:04:11.:04:19.

of Scotland and the independence The union has been in a state of

:04:19.:04:29.
:04:29.:04:36.

organic change it ever since 7007. There have been adjustments, --

:04:36.:04:46.
:04:46.:04:46.

1707. This could be seen as an attempt to the -- it to be invented

:04:47.:04:51.

the union. It is not a question of economics. It is a question about

:04:51.:04:55.

identity. Who do the Scots have think they are? I think the near

:04:55.:05:00.

future, it is our very interesting conversation for people throughout

:05:00.:05:05.

this country about who we are, what is the nature of our identity?

:05:05.:05:12.

There is a technical conversation, how to be run our economies, and

:05:12.:05:22.

pay for our cells in the future? -- ourselves. Scotland would in

:05:22.:05:26.

economic terms be in much of the same place as an independent

:05:26.:05:31.

country as part of the union. Not much better or much worse. There

:05:31.:05:36.

are some big issues that need to be looked into. Post independence,

:05:36.:05:41.

would Scotland be a high tax, high spent country, or would it be a

:05:41.:05:48.

low-tax, low spent country? That has huge implications. For Scotland

:05:48.:05:53.

to be successful, it is better to do it within the union. But to be

:05:53.:06:01.

successful, Scotland needs greater fiscal powers. We would suggest

:06:01.:06:06.

that Scotland is given the wherewithal to raise the money it

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

needs. It is a revolving Union. It changed a hundred years ago, it

:06:17.:06:21.

changed 10 years ago. But most people want to have a common

:06:21.:06:28.

political identity with people in England and Wales. A very strong at

:06:28.:06:32.

the very reasonable argument can be made for more powers short of

:06:32.:06:37.

independence. It is not one that I support, but there is an argument

:06:37.:06:42.

that can be made. But there is no cohesion, no clarity and low sense

:06:42.:06:46.

of coming-together on the unionist campaign at the moment. There will

:06:46.:06:56.
:06:56.:06:57.

be an all-party campaign which will particularly the case for people

:06:57.:07:04.

staying in the United Kingdom. Canada, in Quebec, they had an

:07:04.:07:10.

independence referendum. This issue of Scotland's relationship with the

:07:10.:07:20.
:07:20.:07:21.

union is one that will be continuously negotiated. Across the

:07:21.:07:27.

UK, thoughts have been turning to what independence might mean for

:07:27.:07:31.

the other home nations. This Thursday saw Wales celebrate St

:07:31.:07:41.
:07:41.:07:42.

David's Day. We have been finding out why Wales is taking such a keen

:07:42.:07:52.
:07:52.:07:53.

It became clear that the Scottish people will vote on independence in

:07:53.:07:58.

just over two years. It may be Scotland's referendum, but that

:07:58.:08:07.

cannot be separated from Wales' future. It cannot be underestimated

:08:07.:08:12.

how a major a ripple effect the current debate is having across the

:08:12.:08:17.

rest of the UK. Especially in Wales. From the Welsh point of view, of

:08:17.:08:25.

what would be left would be unrecognisable. If Scotland votes

:08:25.:08:35.
:08:35.:08:41.

for independence, Wales would be part -- of a rump. The Welsh

:08:41.:08:44.

Assembly building sets in Cardiff quo stop some Assembly members say

:08:44.:08:47.

that the outcome of the Scottish debate is so important that it

:08:47.:08:56.

cannot be ignored by Welsh unionist politicians. We do not get a boat

:08:56.:09:03.

in the Scottish referendum, but we need a voice. It has an effect on

:09:03.:09:10.

what will happen to us in the future. Last year, the Assembly got

:09:10.:09:16.

power to make laws in devolved areas. Nationalists believe that

:09:16.:09:21.

they can use the Scottish debate to push for further powers here,

:09:21.:09:26.

perhaps even independence for Wales. He if the Scottish people board es

:09:26.:09:29.

in an independence referendum, the United Kingdom will no longer exist.

:09:29.:09:34.

We need to be thinking what kind of future we have for Wales. There is

:09:34.:09:39.

a danger that we will remain within a United Kingdom per England is so

:09:39.:09:49.
:09:49.:09:51.

completely dominant that are voice will not be heard. -- our voice.

:09:51.:09:58.

recent BBC Wales and Paul suggests that patriot is it does not

:09:58.:10:07.

transferred into a national -- into a desire for independence. The

:10:07.:10:12.

First Minister Carwyn James hosted celebrations for St David's Day in

:10:12.:10:22.

Brussels. I am ever keen to follow anybody off the edge of a clever

:10:22.:10:25.

boy stop it is a matter for the people of Scotland what happens

:10:25.:10:32.

there. We need to look at the structure of the UK now rather than

:10:32.:10:35.

wait to see what happens in Scotland. It is something that

:10:35.:10:42.

affects the whole of the UK. comments have been echoed by a

:10:42.:10:46.

former First Minister of Wales who said that Unionists should campaign

:10:46.:10:52.

positively across the UK. general, I think it is much easier

:10:52.:10:57.

and more positive to be campaigning for a yes it to something. It is

:10:57.:11:07.
:11:07.:11:09.

either yes to independence, adage should be yes to constitutional

:11:10.:11:14.

Convention and a commission which determines the funding formula that

:11:14.:11:18.

determines what Scotland, Wales and Northern Ireland and England get in

:11:18.:11:24.

terms of tax take. All parties agree that Wales is badly served by

:11:24.:11:27.

the Barnett formula which is how money is allocated to the devolved

:11:28.:11:32.

nations. An independent report found a short fall of �300 million

:11:32.:11:37.

a year missing from the Welsh budget. Scotland is widely regarded

:11:37.:11:45.

here as being over funded by Barnet. Alex Salmond told me that he would

:11:45.:11:52.

not support my campaign for a change in the Barnett formula and a

:11:52.:11:58.

change in the way that the Barnett Formula is allocated unless

:11:58.:12:03.

Scotland had control of its own oil and gas resources. At the moment,

:12:03.:12:09.

the Assembly has no control over taxation. But a recent survey

:12:09.:12:16.

suggests two-thirds of voters wants that to change. The Calman

:12:16.:12:19.

Commission is considering whether for the powers would be useful for

:12:19.:12:27.

the Welsh Assembly. And some of the smaller taxes may have come to the

:12:27.:12:37.
:12:37.:12:37.

Welsh government. These are children of a devolved to Wales. By

:12:37.:12:42.

devolution is a process, not an event. The signs are that things

:12:42.:12:48.

will continue to change. For Scotland does it may go some way to

:12:48.:12:58.
:12:58.:13:03.

shipping exactly what those changes I am joined now by an expert in

:13:03.:13:07.

Welsh politics. What is your impression of the effect of the

:13:07.:13:13.

Scottish debate in Wales? I think we need to distinguish between the

:13:13.:13:19.

popular level and the political class. At the popular level it is

:13:19.:13:29.

not all about Scotland. The Welsh people, having just approved

:13:29.:13:33.

devolution by the narrowest of margins, have moved quite rapidly

:13:33.:13:41.

into embracing the concept. One year ago today was when we were

:13:41.:13:49.

looking at the results of the last referendum. That is not really

:13:49.:13:54.

impacted by what is happening in Scotland, so far at least. The

:13:54.:14:00.

political class, on the other hand, is actually increasingly obsessed

:14:00.:14:04.

with what is going on in Scotland and think this is momentous. Many

:14:04.:14:09.

of them seem to believe that Scotland will vote yes in a

:14:09.:14:18.

referendum. They think that Alex Salmond's nationalists are winning

:14:18.:14:25.

the debate. Therefore, they are very concerned. It does not have

:14:25.:14:29.

that kind of resonance and the popular level. But imagine what we

:14:30.:14:36.

have just heard, the Secretary for Wales and former First Minister are

:14:36.:14:39.

seeing we should have a constitutional convention for the

:14:39.:14:45.

whole of the UK. We have the present First Minister for Wales

:14:45.:14:47.

saying that it Scotland goes Independent we should federalising

:14:47.:14:55.

what remains of the UK. These are very radical solutions. There is a

:14:55.:14:59.

suggestion that even in Wales the status quo is possibly not an

:14:59.:15:08.

option in the long term. We have a commission meetings here in Wales

:15:08.:15:15.

at the moment looking at the issue of proper tax-varying powers. Plaid

:15:15.:15:22.

Cymru are actually involved in this. They will almost certainly

:15:22.:15:28.

recommend some form of tax are being powers to Wales. The unions

:15:28.:15:35.

are very nervous about that and want to look again at the Barnett

:15:35.:15:41.

formula. People here in Wales believe that gives Wales a bad deal

:15:41.:15:46.

and we tend to think that Scotland get far too much money out of the

:15:46.:15:51.

Barnett formula. Linking those things together makes it extremely

:15:51.:16:00.

difficult for the UK Government to find a way through that. What was

:16:00.:16:05.

interesting is when you look at the BBC survey about who wanted more

:16:05.:16:11.

powers, 36 % overall said that there should be. Off fluent Welsh

:16:11.:16:17.

speakers 54 % said there should be more powers. The identity politics

:16:17.:16:21.

as it were, someone who identify is very strongly with Wales thinks

:16:21.:16:26.

there should be more powers? Absolutely, although that has

:16:26.:16:32.

changed since 1997. At that point that tendency was even more

:16:32.:16:37.

pronounced. Welsh speakers were overwhelmingly in favour of more

:16:37.:16:45.

powers than non-Welsh speakers. Wales has become more unified

:16:45.:16:50.

around this issue than it used to be and less divided along

:16:50.:16:54.

linguistic lines even though that remains quite a striking Division

:16:55.:16:59.

looking from the outside. I am sorry, we are out of time on this.

:16:59.:17:05.

You could write a whole book on this, I know you have. There is a

:17:05.:17:13.

plug! Now the lunchtime news with Gillian smart. Margaret Curran will

:17:13.:17:23.
:17:23.:17:24.

use her speech in Dundee to the Labour conference -- target the

:17:24.:17:30.

Labour conference. Where is Michael Moore? He is missing in action. He

:17:30.:17:35.

is hands-on when it comes to welfare cuts. Love can be 8,000

:17:35.:17:40.

disabled children who will lose their benefits. He has been sitting

:17:40.:17:46.

with the Tories and it is just not acceptable. Willie Rennie has told

:17:46.:17:50.

the Lib Dem conference he is prepared to work with the SNP to

:17:50.:17:58.

deliver more Holyrood powers but only after the 'no' vote on

:17:58.:18:04.

Scottish Independence. It may be that after the 'no' vote the SNP

:18:04.:18:10.

can survive the ending of their dream. We and we could well be able

:18:10.:18:19.

to work together afterwards to shape the future for Scotland. Does

:18:19.:18:24.

welcome noises we have heard recently from Labour will need to

:18:24.:18:34.
:18:34.:18:35.

be nurtured as well. There were allegations in the Sunday newspaper

:18:35.:18:43.

against Bill Walker over allegations of domestic violence.

:18:44.:18:46.

Police forces say they have received a number of calls

:18:46.:18:52.

reporting what is believed to be a meteor. Reports of a bright light

:18:53.:18:59.

with an orange grove came in in the north of Scotland amid fears that a

:18:59.:19:05.

plane had crashed. Now the weather forecast. It is a West/East split

:19:05.:19:09.

in terms of the weather with the band of rain, sleet and snow

:19:09.:19:13.

finally cleaning from the North Sea coast. There will be sunny spells

:19:13.:19:19.

and wintry showers in the West. Temperatures around seven Celsius.

:19:19.:19:26.

It will be a cold night tonight. Tomorrow will be brighter generally.

:19:26.:19:30.

Probably the best day of the week as it is turning unsettled. That is

:19:31.:19:37.

all for now. Back to Isabel. In a moment we will be discussing the

:19:37.:19:43.

big events in Holyrood but firstly a more detailed look back at the

:19:43.:19:53.
:19:53.:19:56.

week in 60 seconds. De devo plus campaign called for a substantial

:19:56.:20:06.
:20:06.:20:11.

increase in powers for Holyrood. In a statement to Parliament Kenny

:20:11.:20:17.

MacAskill denied allegations about the release of Abdelbaset al-

:20:17.:20:22.

Megrahi. I did not suggest to anyone connected with the Libyan

:20:22.:20:27.

Government ought to Mr al-Megrahi himself that abandoning his appeal

:20:27.:20:32.

against conviction would in any way eat or affect his application for

:20:32.:20:38.

compassionate release. The Fraser of Alan institute predicted one in

:20:38.:20:47.

10 people would be out of a job by the end of the year. This man

:20:47.:20:52.

admitted posting a picture of Neil Lennon covered in bullet wins on a

:20:52.:21:02.
:21:02.:21:04.

social networking site. And now a new season of political conferences

:21:04.:21:11.

will stop --.. I am joined by the Labour political blogger, Ian Smart.

:21:11.:21:16.

And that the Liberal Democrat the Scottish Lib Dem blogger, Karen

:21:16.:21:21.

Lindsay. Thank you for joining us. Do you think all has been forgiven

:21:21.:21:26.

and forgotten when Nick Clegg walks through the doors at Inverness?

:21:26.:21:31.

There was nothing to forgive him for. He has led our party into

:21:31.:21:36.

Government. He is delivering so many of our manifesto promises. He

:21:36.:21:42.

has cut taxes for people on low and middle incomes. He is putting �60

:21:42.:21:48.

per month back in people's pockets. I think what I would say about that

:21:48.:21:52.

is that we need to find another way, people do not feel particularly

:21:52.:21:59.

rich, but we need to say we pay people's council tax on a couple of

:21:59.:22:03.

months, fill their car for five times. We have given the biggest

:22:03.:22:09.

cash rise in State pension this year. Nick Clegg has been

:22:09.:22:15.

absolutely fantastic. Accepting that you feel that perhaps the

:22:16.:22:21.

message has not gone out as you would like. I do not want to dwell

:22:21.:22:26.

on this but Tavish Scott the former leader had said that Nick Clegg's

:22:26.:22:31.

decision on tuition fees had dried the party into gutter politics.

:22:31.:22:35.

Other members indicated the coalition came at the wrong time

:22:35.:22:39.

for the party going into the Holyrood election. Are you really

:22:39.:22:43.

saying, I think Nick Clegg even in our interview said people were very

:22:43.:22:48.

angry at some of the choices that had to be made. I think that is

:22:48.:22:53.

right. The fact that we inherited such a mess from Labour. If the

:22:53.:22:57.

coalition Government had not taken the action that it had an hour

:22:57.:23:01.

credit rating would have gone, you have seen what has happened in

:23:01.:23:06.

Greece and Spain, we would have bigger deficits than they had. It

:23:06.:23:11.

has been a very, very difficult time. We have had to make difficult

:23:11.:23:16.

decisions. In some ways we are used to that. Lib Dems have taken power

:23:17.:23:21.

in places like Aberdeen and Edinburgh. Labour had left the

:23:21.:23:28.

chronic financial mess. Now Audit Scotland are seeing what a good job

:23:28.:23:33.

has been done in putting the councils on a surer financial

:23:34.:23:42.

footing. Ian, what did Johann Lamont have to do and did she do

:23:42.:23:48.

it? She had to survive and she did. She made a joke about the big

:23:48.:23:52.

beasts or men, do you think there is too much testosterone floating

:23:52.:23:58.

about the debate at the moment? I think there is not enough

:23:58.:24:02.

discussion at the moment. What she had to do was present herself as a

:24:02.:24:07.

credible alternative First Minister. How far do you think the party has

:24:07.:24:12.

to go in getting that image across and also interestingly, what Labour

:24:12.:24:18.

have been trying to do, linking Scottish identity with UK identity,

:24:18.:24:23.

is that an important path than they have to go now? I think the party

:24:23.:24:29.

is trying to find its way slowly to the right position on the national

:24:29.:24:32.

question. The interesting speech was the Douglas Alexander's speech

:24:32.:24:37.

on the Friday which I think did open up the serious in a more

:24:37.:24:42.

worthwhile way. I think what Johann Lamont is on her way to do is to

:24:42.:24:46.

establish herself as a credible leader of the opposition. I think

:24:46.:24:50.

she has a long way to go to establish herself as a credible

:24:51.:24:57.

First Minister. Douglas Alexander was trying to be more radical.

:24:57.:25:02.

Johann Lamont says she is coming up with more radical solutions.

:25:02.:25:07.

think that is dishonest. There are differing opinions. I am more on

:25:07.:25:15.

the Douglas -- Danny Alexander side of the argument. Gordon Brown will

:25:15.:25:20.

be involved in this campaign and Alistair Darling will be involved

:25:20.:25:26.

in Labour's Campaign. How important do you think it is that there is

:25:26.:25:30.

some cross-party co-operation now or do you think, and I am asking

:25:30.:25:36.

you this as a Lib Dem, is that a good or a bad thing if Gordon Brown

:25:36.:25:41.

appears on the platform with David Cameron? I think that it is

:25:41.:25:47.

important that we hear voices from across the political spectrum in

:25:47.:25:52.

this independence referendum debate. What I thought was fantastic

:25:52.:25:54.

yesterday was travels Kennedy on the platform here saying he would

:25:54.:26:01.

live for the family -- the party in the know to independence campaign.

:26:01.:26:06.

Willie Rennie said this morning we have got such a long record on home

:26:07.:26:12.

rule. If we can encourage those sorts of feelings and other parties

:26:12.:26:17.

work with other politicians to develop a home rule solution for

:26:17.:26:25.

Scotland which I think most people would actually want. What do you

:26:26.:26:32.

think of some of these policy areas that Johann Lamont has brought up,

:26:32.:26:36.

be the sound familiar? I've got the best bet of her speech was when she

:26:36.:26:40.

was talking about the policies we could usefully be pursuing, policy

:26:40.:26:44.

choices we would have made differently. The point she made

:26:44.:26:49.

about the future of higher education expenditure was a very

:26:49.:26:55.

well made. And the idea that we are getting this no tuition fees policy

:26:55.:27:02.

on a cost fee basis is actually meaning people in further education

:27:02.:27:08.

are paying for free higher education. And what she was seeing

:27:08.:27:15.

on income taxes? How realistic that is. It seems to be her response.

:27:15.:27:25.
:27:25.:27:34.

Whatever the party line, that seems I do concede that. She is arguing

:27:34.:27:38.

for increased expenditure. She is silent on the second half of the

:27:38.:27:42.

equation. Adding part of the problem that Labour has got at the

:27:42.:27:45.

moment is that they do not make the distinction between better public

:27:45.:27:49.

services and more expensive public services. We have to be on the side

:27:49.:27:58.

of better public services. Do you have any sense that the Lib Dems

:27:58.:28:05.

have done enough to motivate the grass roots? Absolutely it. It has

:28:05.:28:11.

been a lot of work and it has been going on for many months. Lib Dems

:28:11.:28:15.

campaign all year round. There is an amazing sense of optimism around

:28:15.:28:25.
:28:25.:28:29.

here. Long-term optimism. Liberal youth had the most successful fund-

:28:29.:28:33.

raising event ever. I have been setting up a mentoring programme.

:28:33.:28:37.

We have seen it new people coming into the party, talented people,

:28:37.:28:45.

and I look forward to working with them. Candidate selection. Johann

:28:45.:28:55.
:28:55.:28:59.

Lamont says that has to be looked at. Yes, I hope so. They do not

:28:59.:29:03.

bring you on here to be discreet. We need to have a better diversity

:29:03.:29:10.

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