07/09/2011 Daily Politics


07/09/2011

Andrew Neil and Jo Coburn have live coverage of PMQs and political stories. Is the 50p tax rate holding back the recovery? A group of economists think so, but are they right?


Similar Content

Browse content similar to 07/09/2011. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Morning folks and welcome to the Daily Politics.

:00:23.:00:26.

Coming up in the next hour and a half - Is the 50p tax rate holding

:00:27.:00:32.

back an already feeble recovery? A group of leading economist think so

:00:32.:00:36.

and are calling on the Chancellor to scrap it. We'll ask if they're

:00:36.:00:38.

right. The train arriving on Platform two

:00:38.:00:42.

is from Germany. MPs ask why the contract from Thameslink trains

:00:42.:00:47.

went abroad. Warnings our planes could be going

:00:47.:00:50.

abroad too if the Government doesn't do anything about airport

:00:50.:00:58.

expansion in the South East. there any question you would like

:00:58.:01:03.

me to ask her? I would give the lessons in how ring to be a

:01:03.:01:08.

reporter later. I will give you some lessons on how to be an ever

:01:08.:01:12.

do because I was your boss. And could small, local TV stations

:01:12.:01:15.

be just what British viewers have been waiting for - our guest the

:01:15.:01:25.
:01:25.:01:27.

Culture Scretary thinks so. I like that.

:01:27.:01:30.

All that coming up in the programme, and of course, the first Prime

:01:30.:01:34.

Minister's questions of the new political term. Now the new series

:01:34.:01:37.

of Strictly Come Dancing may have Jason Donovan and Edwina Curry, but

:01:37.:01:46.

we can top that. Oh yes! Doing the Lambada we have shadow culture

:01:46.:01:49.

secretary, Jeremy Hunt. And the shadow environment secretary, Mary

:01:49.:01:55.

Creagh's also here. I'm told yoga's more her thing.

:01:55.:01:58.

Anyway, there will be no dancing on the show today, we have much more

:01:58.:02:02.

serious matters to discuss. Yes, Parliament got right back into

:02:02.:02:04.

the swing of things yesterday evening, subjecting the Prime

:02:04.:02:07.

Minister to his twice-yearly grilling in front of the Liaison

:02:07.:02:11.

Committee. In the forefront of MPs' minds was the News of the World

:02:11.:02:13.

hacking scandal following yesterday's evidence from News

:02:13.:02:18.

International executives. But the Prime Minister warned the committee

:02:18.:02:21.

not to use the scandal as an opportunity to get back at

:02:21.:02:28.

journalists over the MP's expenses scandal.

:02:28.:02:34.

We must not be seen to be the fall and leaping on this opportunity to

:02:34.:02:37.

over regulate the media. It is a vital industry for Britain and an

:02:38.:02:43.

important part of our democracy. We want it to be free, vigorous and be

:02:43.:02:47.

able to uncover wrong doing. No there is a danger of the pendulum

:02:47.:02:51.

swinging too far the other way and I think MPs have a particular

:02:51.:02:56.

responsibility. In the end, what ever the Levison report comes up

:02:56.:03:01.

with we need to be able to legislate and put it in place.

:03:01.:03:07.

Jeremy Hunt, in what way cut as -- pendulum swing too far the other

:03:07.:03:16.

way? I think what he was saying is that things have gone wrong in the

:03:16.:03:20.

wake things have been regulated and there were not enough safeguards in

:03:20.:03:26.

place. But, we depend on a free society. In phone hacking it was

:03:26.:03:31.

uncovered by journalists in the Guardian by reporting which has

:03:31.:03:35.

been compared to Watergate in terms of how impressive it was. He is

:03:35.:03:40.

saying don't throw the baby out with the bathwater, in a free

:03:40.:03:43.

society we need a vigorous press that holds politicians to account

:03:43.:03:48.

and we don't want to lose that. you get rid of the Press Complaints

:03:48.:03:52.

Commission, which seems to be on the cards, what would replace it?

:03:52.:03:59.

We need something that stops short of politicians regulating the

:03:59.:04:02.

content of newspapers. Because what makes our newspaper industry able

:04:02.:04:07.

to do its job well, is the fact people like me as Culture Secretary,

:04:07.:04:12.

has no control over what goes into them. We need something that gives

:04:12.:04:17.

the public more confidence than the PCC was able to do. Her what would

:04:17.:04:23.

independent regulation look like? We don't want to Prix just --

:04:23.:04:27.

prejudge largest is never so. We hope he will come back within the

:04:27.:04:31.

year with his recommendations on this aspect. What the Prime

:04:31.:04:34.

Minister has said, let's look at the concept of independent

:04:34.:04:39.

regulation. Regulation at arm's length from politicians but also

:04:39.:04:43.

from editors and does have the power to credibly sanction

:04:43.:04:47.

newspapers that stepped out of line, but stopped short of politicians

:04:47.:04:55.

telling newspapers what they can write. Did you ever discuss the

:04:55.:05:01.

Murdoch attempt to take over all of BSkyB with David Cameron? No, this

:05:01.:05:07.

is something which is as soon as I got the job in deciding on this

:05:07.:05:12.

merger it was a quasar judicial process, which was meaning I was

:05:12.:05:17.

deciding like a judge. It is a role laid down in the enterprise at so

:05:17.:05:22.

it was a decision I made on my own. If you never discussed the matter

:05:22.:05:26.

with the Prime Minister, how were you able to tell the Commons the

:05:26.:05:31.

Prime Minister's conversations with Murdoch executives had been a

:05:31.:05:35.

relevant? They were irrelevant for this merger because what ever

:05:35.:05:40.

conversations he may have had about the merger, nothing was transmitted

:05:40.:05:45.

that to me. I was deciding this on my own. As I said in my statement,

:05:45.:05:49.

it is the only decision I have had as a minister I was deciding on my

:05:49.:05:53.

own without any reference to the Cabinet or the Prime Minister.

:05:53.:05:57.

you don't know what he said, it is hard to decide whether it was a

:05:57.:06:01.

relevant? It was a relevant for this merger because he did not

:06:01.:06:05.

communicate with me any instructions. He was letting me

:06:05.:06:09.

decide this on my own, which is the right thing under the law Labour

:06:09.:06:14.

passed into 1002. A Will you publish the minutes of the meetings

:06:14.:06:19.

you have had with Murdoch executives? I already have. Every

:06:19.:06:23.

conversation? The minutes of meetings we have had were part of

:06:23.:06:27.

the process. At the outset we published the Times of the meetings

:06:27.:06:35.

and who was present. Then as soon as the merger was abandoned, we

:06:35.:06:37.

then publish the minutes of the meeting so people could see what

:06:38.:06:42.

was discussed. When Labour was in power it substantially used under

:06:42.:06:48.

the ability of one media company to get a hold of another media company.

:06:48.:06:53.

It made it a more liberal regime, but now you want to tighten it

:06:53.:06:59.

again? That's right, we have written about the rules on media

:06:59.:07:04.

ownership. We did say to Jeremy, of the rules on which she could reject

:07:04.:07:10.

the BSkyB bid won narrowly drafted. We have written to Jeremy asking

:07:10.:07:15.

for was to work on a cross-party basis for some short-term, quick

:07:15.:07:18.

legislation to be passed through to tighten up the rules. We want to

:07:18.:07:21.

hear from you were the you are prepared to work on a cross-party

:07:21.:07:26.

basis to do that? We have gone a lot further than the proposals Ivan

:07:26.:07:30.

has made and we have talked about whether to remove politicians from

:07:30.:07:34.

the process altogether. One of the problems in this process was,

:07:34.:07:38.

although I was deciding in a quasar judicial role and I sought

:07:39.:07:44.

independent advice at every SAT -- stage, people won't trust what a

:07:44.:07:48.

politician does with media barons. You are talking about that but you

:07:48.:07:54.

have not done it? We need to talk up that before Levison reports. It

:07:54.:08:03.

goes through the the 2013 Queen's Speech and may not be in place in

:08:03.:08:08.

2015. Why is there a rush to do this? Will there be any other

:08:09.:08:15.

takeovers? Who knows but what this sorry episode has shown is the

:08:15.:08:19.

current system of regulation is not a fit for purpose. I appreciated

:08:19.:08:23.

talking about a number of things, but is it your intention to do

:08:23.:08:27.

anything this side of lovers and? We will listen to all suggestions

:08:27.:08:33.

but this is headline-grabbing by Labour. If there was another bit, I

:08:33.:08:38.

would have the opportunity to refer this to Ofcom for investigations on

:08:38.:08:43.

grounds of fit and proper person, on the grounds of media plurality.

:08:43.:08:47.

All the safe grounds people would be concerned about exist. Ofcom has

:08:47.:08:51.

the time at any time to withdraw a broadcasting licence from someone

:08:51.:08:55.

it deems not to be a fit and proper broadcaster. There are protections

:08:55.:09:00.

in place, but we want to go further. It is right to hear what the report

:09:01.:09:04.

says before we decide what to do. It does not look like you will get

:09:04.:09:11.

it. But you found out on the Daily Politics. We also heard of

:09:11.:09:15.

opposition trying to get headlines, who would ever have heard of that!

:09:15.:09:18.

Now, should trains running on British railways be built in

:09:18.:09:20.

Britain? The contract to build new trains for the Thameslink network

:09:20.:09:24.

was awarded in July to Siemens who will build the trains in Germany

:09:24.:09:26.

rather than the Derby-based manufacturer, Bombardier. The

:09:26.:09:28.

decision's prompted accusations that the Government's failing to

:09:28.:09:33.

protect British industry. The awarding of second contract for

:09:33.:09:36.

Crossrail trains has now been delayed until the New Year. This

:09:36.:09:46.
:09:46.:09:49.

morning the Transport Secretary explained the Government's decision.

:09:49.:09:53.

It is astonishing the French and Germans managed to build so many of

:09:53.:09:57.

their own trains. Have you discussed this with officials on

:09:57.:10:02.

how we can be slotted into that same astonishing category? It is my

:10:02.:10:07.

perception we need to look at how these things are done in other EU

:10:07.:10:12.

member states. We need to consider how socio-economic factors are

:10:13.:10:16.

taken into account in other EU member states, while being fully

:10:16.:10:22.

compliant with EU procurement law. We need to look at how other member

:10:22.:10:27.

states seek to take into account of their strategic, national interests

:10:27.:10:31.

without breaching EU procurement law. We need to see if there are

:10:31.:10:37.

lessons we can learn for the way we do public procurement in the UK.

:10:37.:10:44.

That was Philip Hammond, and joining us now is Steve from

:10:44.:10:49.

Siemens. He is not hear it, but we hope to get him later on. Listening

:10:49.:10:54.

to Philip Hammond it sounded like a regret. That decision was not the

:10:54.:10:59.

right decision for British industry, it was regrettable it had to go to

:10:59.:11:02.

Siemens and now afterwards, Philip Hammond is saying we will have a

:11:02.:11:06.

look at the rules and see if we can interpret them differently to

:11:06.:11:11.

favour home-grown companies without breaking EU regulations? There was

:11:11.:11:17.

an element of that in his tone and I don't want to be someone who is

:11:17.:11:19.

continually blaming the last Government. All Government makes

:11:19.:11:25.

mistakes. Do you think he has regrets? The procurement system was

:11:25.:11:29.

set up by the last Government and then you have to stick to the rules.

:11:29.:11:34.

What Philip feels is the rules were very narrowly set on cost grounds

:11:34.:11:38.

and made it difficult to take into account what he described as socio-

:11:38.:11:43.

economic factors, long-term, strategic implications of trains

:11:43.:11:50.

being built in the UK as opposed to be been built a board. -- abroad.

:11:50.:11:56.

The contract for the new South West Trains going to Hitachi, which will

:11:56.:12:00.

create 500 jobs, we have shown we are learning from perhaps some of

:12:00.:12:05.

the mistakes in the way that put your money happened. You say they

:12:05.:12:08.

were narrowly set but there was room for manoeuvre. Do you think

:12:08.:12:12.

the Government failed to manoeuvre correctly in the way France and

:12:12.:12:18.

Germany seems to be able to do so they can award their own companies.

:12:18.:12:21.

You can interpreted differently and the Government was a naive and did

:12:21.:12:26.

not do that? I don't think you can, once the procurement is set up, you

:12:26.:12:30.

get judicially reviewed if you don't follow that process to the

:12:30.:12:34.

letter. So the way you have to do it is to allow yourself at the

:12:34.:12:39.

outset to take into account socio- economic factors, which allows the

:12:39.:12:44.

bidders to construct their bids accordingly. We obviously do want

:12:44.:12:50.

to want it train building industry in the UK. What do you accept on

:12:50.:12:54.

the socio-economic argument, not only would jobs be lost at the

:12:54.:12:58.

Derby-based, Bombardier there will be an knock on effect to the skill

:12:58.:13:01.

set in that area and the supply chain of companies where there will

:13:01.:13:08.

also be redundancies? It will have a huge impact. It is regrettable.

:13:08.:13:12.

British-based companies have to put in competitive bids. It is right we

:13:13.:13:16.

have an open procurement system and it is right they have to compete

:13:16.:13:20.

with the best of what is on offer internationally. But I think there

:13:20.:13:24.

are a lot of things we can learn from the way that process happened.

:13:24.:13:28.

Jeremy Hunt is blaming Labour for the way the system is set up, but

:13:28.:13:32.

it was difficult for the Government to do anything about. Labour has

:13:32.:13:38.

said they should call in a review, but they can't can make? They could

:13:38.:13:42.

have pause the contract and that was set out in the Comprehensive

:13:42.:13:47.

Spending Review last year. What we have in Parliament today is the

:13:47.:13:52.

1,400 Bombardier workers who were laid off and a city of Derby led by

:13:52.:13:58.

the Tories, now considering whether to do its judicial review. You do

:13:58.:14:02.

admit this is a system set up by Labour? The it was, and we are only

:14:02.:14:07.

at the preferred bidder status so there is a question from Chris

:14:07.:14:09.

Williamson and Margaret Beckett, the contract has not been finally

:14:09.:14:14.

awarded. It does take the biscuit that somehow blame is being

:14:14.:14:21.

attached to a Tory council for this. This is a procurement process.

:14:21.:14:27.

is extraordinary a Tory Government is using taxpayers' money. We need

:14:27.:14:32.

to have modern infrastructure. What benefit would there be in pausing a

:14:32.:14:36.

process if the performance for process was set up to make it

:14:36.:14:39.

difficult or impossible to make any other decision than the one we made.

:14:39.:14:44.

We need to move forward and make sure we learn lessons going forward.

:14:44.:14:48.

There is also a point that Jeremy Hunt did make an this is a

:14:48.:14:53.

competitive tender. Companies bid from right across Europe. If you

:14:53.:14:57.

look at the figures, a large proportion of British companies win

:14:57.:15:01.

French and German contracts and only a small percentage of foreign

:15:01.:15:06.

companies win British contracts. That is just the way the cookie

:15:06.:15:11.

crumbles, you cannot complain about every bit that does not go

:15:11.:15:18.

Britain's way? They have been thousands of jobs done in Derby and

:15:18.:15:22.

a cross the supply chain. This is when the Government's thrust

:15:22.:15:28.

towards growth is about rebalancing the economy and we fail to see how

:15:28.:15:31.

this decision does that. Looking ahead to Cross Road, are you

:15:31.:15:35.

confident and hope for it there will be tenders that will be

:15:35.:15:45.
:15:45.:15:46.

That is why we want to change these processes. We can have a better

:15:46.:15:51.

discussion that we are having with Mary. She accepted there were

:15:51.:15:55.

mistakes in the process and they are unfortunate mistakes and we

:15:55.:15:59.

regret those. It is incredibly difficult and exactly the wrong

:15:59.:16:03.

time in terms of what we are trained to do with the economy. But

:16:03.:16:08.

there was little else if we -- we could have done and the way forward

:16:08.:16:13.

is to say, how can we do this better in the future?

:16:13.:16:18.

Do win wonders for the German economy, production rose by 4% in

:16:18.:16:24.

July. -- it is doing wonders. No doubt the people in Derby will be

:16:24.:16:29.

celebrating that! We can be masters of our destiny," or at least that's

:16:29.:16:32.

what the Chancellor George Osborne told an audience in the City of

:16:32.:16:35.

London last night. He gave a very gloomy prognosis for the British

:16:35.:16:37.

economy, but insisted that there was no alternative to his deficit

:16:38.:16:40.

reduction plan. So how can economic growth be promoted? Well, writing

:16:40.:16:43.

in the Financial Times this morning, 20 leading economists have called

:16:43.:16:46.

on the Chancellor to scrap the top 50p tax rate, which they say is

:16:47.:16:51.

hindering Britain's competitiveness. But it is a sticky political as

:16:51.:16:58.

well as economic issue. Here's Jo. The 50p tax rate, which is paid on

:16:58.:17:00.

earnings above �150,000, was introduced by Labour and came into

:17:00.:17:10.

force just before the election in. April 2010. -- in April 2010. The

:17:10.:17:13.

Conservatives did not pledge to scrap it, they thought to do so

:17:13.:17:16.

would allow Labour to claim they were favouring the rich. George

:17:16.:17:19.

Osborne has said he regards it as a temporary tax, but he also said in

:17:19.:17:22.

the 2010 Spending Review, "Those with the broadest shoulders bear

:17:22.:17:26.

the greatest burden." However, there is currently a review as to

:17:26.:17:30.

whether the tax raises money, or actually does economic damage.

:17:30.:17:33.

Today's letter to the Financial Times from 20 economists makes that

:17:33.:17:35.

point, arguing that it makes the UK less competitive internationally

:17:35.:17:38.

and less attractive as a destination for both foreign

:17:38.:17:42.

investment and talented workers. But in a Com Res poll published

:17:42.:17:49.

yesterday, 57% were against abolishing the 50p rate. Many

:17:49.:17:51.

Conservative MPs would support scrapping the 50p rate, but if it

:17:51.:17:54.

was to go, many Liberal Democrats would want another form of wealth

:17:54.:18:04.
:18:04.:18:04.

tax on the most expensive land or property. We had hoped to be joined

:18:05.:18:10.

by a signatory of that letter, but he has not made it, probably on the

:18:10.:18:16.

same train as the man from Siemens! Good job we have two guests or we

:18:16.:18:22.

would be talking to ourselves! The Chief Secretary to the Treasury,

:18:22.:18:28.

Danny Alexander, he says the scrapping the 50p rate is, cloud

:18:28.:18:34.

cuckoo land. Do you agree? cannot afford to do it. The

:18:34.:18:38.

economists talk about the long-term damage and we agree and have always

:18:38.:18:42.

said it is a temporary measure. But we have always said when dealing

:18:42.:18:47.

with this incredible economic mess we are in, we have to do it in a

:18:47.:18:51.

way that is fair and everybody has to play a part. So we have to be

:18:51.:18:55.

careful thinking about these measures to do so anyway that

:18:55.:19:00.

continues to maintain public support for a very tough set of

:19:00.:19:05.

economic policies. So it is a very fine judgements. I understand you

:19:05.:19:10.

will not do it now, back which you are implying you wish you do not

:19:10.:19:16.

have it -- but you are complying. Do your Liberal-Democrat Coalition

:19:16.:19:21.

partners agree? We all agree weenies competitive tax rates.

:19:21.:19:28.

does not mean anything. -- we need competitive. Is 50p at a long-term

:19:29.:19:34.

competitive rate? The Chancellor said it is temporary

:19:34.:19:39.

and we believe it needs to be. you Liberal-Democrat partners agree

:19:39.:19:45.

it is temporary? Danny Alexander and George Osborne are an the

:19:45.:19:50.

Treasury and the need to do things to make further UK economy more

:19:50.:19:54.

competitive and make sure up the tax burden is fairly sped, they

:19:54.:20:02.

have to make that judgment. I am not asking for a judgement. I have

:20:02.:20:05.

not seen his senior Liberal Democrat member of the Government

:20:05.:20:11.

say it should only be temporary -- a senior. Have you? What you have

:20:11.:20:17.

seen them say is there is a very strong case for moving the burden

:20:17.:20:25.

of taxation it from earned income to unearned income. -- of taxation

:20:25.:20:31.

from. Capital gains tax, those kinds of things. That is an old-

:20:31.:20:35.

fashioned description. Nobody has described it as that for ages! The

:20:35.:20:42.

Tories got rid of that description! So working hard and saving money

:20:43.:20:47.

and getting a derisory rate of interest, that is unearned income?

:20:47.:20:52.

You are asking me what the Liberal Democrats are saying. You have used

:20:52.:20:58.

the phrase. That is what some have said. There is an understanding in

:20:58.:21:02.

Liberal Democrats circles that we need competitive and fair rates of

:21:02.:21:08.

taxation but how we do it is a matter for the Chancellor. We have

:21:08.:21:13.

our economist in another studio now. Is it... Up I know you would keep

:21:14.:21:19.

the 50p tax rate, but as Labour envisage this rate stays

:21:19.:21:25.

indefinitely? -- I know. It we want a progressive taxation policy that

:21:25.:21:30.

leads to a balanced and prosperous economy and it is clear the 50p

:21:30.:21:35.

rate has to stay. That is the policy at the moment. Do you change

:21:35.:21:42.

it? Until the recovery is secured. The figures we saw last night, at

:21:42.:21:47.

the recovery is not secured. I what policy is about a tax cut for part

:21:47.:21:54.

-- for families. The VAT rise has taken �450 out of people's pockets

:21:54.:22:00.

and if you give that to middle income families, they will span

:22:00.:22:04.

that on the high street which is where we need to see jobs created.

:22:04.:22:07.

Well, joining us now is one of the signatories to that letter, Michael

:22:07.:22:13.

Ben-Gadd, of City University. Real wages are in decline, inflation it

:22:13.:22:18.

is rocketing, manufacturing is contracting, High Street is in

:22:18.:22:25.

meltdown, the eurozone is in crisis, why would you make scrapping the

:22:25.:22:31.

50p tax rate the priority? I do not know if it is the priority. But to

:22:31.:22:35.

follow what on what was said, at a do not understand the moral

:22:35.:22:40.

imperative on insisting those people already paying 24% of income

:22:40.:22:46.

tax that they should be punished further. Beyond that, this happens

:22:46.:22:52.

to be a tax that if anything, it is counter-productive. According to

:22:52.:22:57.

all the theoretical and Imperial models, it raises no extra revenue,

:22:57.:23:05.

it just punishes people. Let me make it very clear, and not one of

:23:05.:23:11.

those people who think lowering taxes is ever self financing. I am

:23:11.:23:16.

not making an argument in favour of reductions in taxation, it is a

:23:16.:23:21.

necessary evil and if government spending is as high as it is, it

:23:21.:23:26.

has to be financed. But this particular tax not only does not

:23:26.:23:30.

raise revenue, but it lowers the size of the economy. Or we do not

:23:30.:23:35.

know that yet because we will not know what the revenue implications

:23:35.:23:39.

art of the rate until all the self- assessment has happened -- we do

:23:39.:23:43.

not. People in higher brackets are in the self-assessment category A

:23:43.:23:48.

and we do not go -- not get those figures in until January so we do

:23:48.:23:52.

not know what the revenue implications have been on the 50p

:23:52.:23:57.

tax rate. We have a theoretical models of human behaviour. And when

:23:57.:24:03.

you raise taxes, you get lower economic activity. That is not

:24:03.:24:08.

controversial. But at what point our taxes so high? This is not just

:24:08.:24:13.

about 50p book that on top of National Insurance contributions

:24:13.:24:17.

that brings the effective marginal tax rate to something in the order

:24:17.:24:23.

of 64%, not counting all the rest. It is an enormous disincentive to

:24:23.:24:28.

walk -- to work and all the previous experience we have does

:24:28.:24:33.

suggest it brings no extra revenue. But Chancellors have to deal with

:24:33.:24:37.

priorities and if he had money to spare, would it be more sensible

:24:37.:24:43.

for him to take people out of the 40% tax bracket who are now in

:24:43.:24:49.

there, heads of English departments at comprehensive schools, they need

:24:49.:24:54.

more relief than those on those -- than those on the 50% rate? It is

:24:54.:24:58.

not about if they need relief and I will put aside the moral argument,

:24:58.:25:04.

but I suggest this is one of the rare instances. I do not believe

:25:04.:25:08.

you can expand government consumption because of some

:25:08.:25:13.

multiplier that you will get higher output to pay for it, I do not

:25:13.:25:17.

believe that cutting taxes pays for itself. It may make the economy

:25:17.:25:22.

bigger, but it will also make the deficit bigger. This is unusual

:25:22.:25:26.

because the rate has been set so high that it is not going to have

:25:26.:25:32.

any effect and it will improve the overall performance of the economy.

:25:32.:25:37.

Professor, I am glad you made it. If the figures come out in January

:25:37.:25:41.

and show the 50p rate has not raise more revenue, what would your

:25:41.:25:47.

attitude be? I do not think we should rely on the figures, I would

:25:47.:25:52.

like to see the Independent office for but it responsibility looking

:25:52.:25:57.

at this. But the Professor said it is an enormous disincentive to

:25:57.:26:02.

work... But they are doing that taxing come up why can these

:26:02.:26:07.

figures not be reliable? It is a macro-economic framework we are

:26:07.:26:17.
:26:17.:26:17.

looking that. And am not talking about that. The idea if you are on

:26:17.:26:21.

a 140,000 and if you get 150,000 you are not going to work, that is

:26:21.:26:27.

nonsense. What would the. Be of a 50 p rate if it did not raise

:26:27.:26:32.

revenue? -- what would the purpose be. Mack that is a good question

:26:32.:26:36.

and is important, but we need to make sure that taxis and system is

:26:36.:26:41.

fair in tough times. -- the taxation system.

:26:41.:26:44.

Now, we're delighted that Mary and Jeremy decided to grace our sofa

:26:44.:26:47.

rather than the Strictly Come Dancing dance-floor. There are many

:26:47.:26:50.

perks to coming on the show. But I'm afraid the only winners here

:26:50.:26:56.

will be you, the viewers. Sorry, guests. It doesn't matter how well

:26:56.:26:58.

you do, you won't be winning one of these.

:26:58.:27:02.

We'll remind you how to enter in a minute, but let's see if you can

:27:02.:27:12.
:27:12.:27:12.

Apology for the loss of subtitles for 42 seconds

:27:12.:27:55.

Of I now are open colder Hall, of Britain's first atomic power

:27:55.:28:05.
:28:05.:28:24.

To be in with a chance of winning a Daily Politics mug, send your

:28:24.:28:28.

answer to our special quiz email address - that's [email protected]

:28:28.:28:32.

And you can see the full terms and conditions for Guess The Year on

:28:32.:28:42.
:28:42.:28:42.

our website. Put we got the year, didn't we? --

:28:42.:28:46.

we got. We did, unusually.

:28:46.:28:49.

That was Eisenhower. It's coming up to midday here, just

:28:49.:28:53.

take a look at Big Ben, and that can mean only one thing. Yes, Prime

:28:53.:28:57.

Minister's Questions is on its way. We have not had one since the

:28:57.:29:03.

second week in July. And that's not all, James Landale is here. Good to

:29:03.:29:07.

have you here, I do not know where to begin. If you were briefing Ed

:29:07.:29:12.

Miliband this morning, where would you start? So much has happened!

:29:12.:29:16.

would say you have to talk about the economy, it is the only issue

:29:16.:29:20.

that has matters, a lot has changed since Parliament last discussed

:29:20.:29:25.

this. Regardless of the ammunition David Cameron has got, he has to

:29:25.:29:29.

say what Labour says about it and test the position of the government.

:29:29.:29:35.

Which you agree with that, Mary? can see George Osborne brief think

:29:35.:29:41.

the Prime Minister as we sit and look at the chamber. -- briefing.

:29:41.:29:45.

But the other interesting question is what have the backbenchers been

:29:45.:29:50.

talking about. What are we going to say about riots? What about

:29:50.:29:55.

planning comic Europe? Those other issues. It will be interesting to

:29:55.:30:00.

see what we get about that today. And the Liberal Democrats, they

:30:00.:30:04.

seem to be on the strategy of being in government but a bit semi-

:30:04.:30:08.

detached now. It is differentiation, loyal

:30:08.:30:16.

differentiation. That is my own phrase for it!

:30:16.:30:21.

Liberal Democrats! LD! We are a few weeks away from the Liberal-

:30:21.:30:24.

Democrat common -- conference and they have to recover from that

:30:24.:30:28.

awful elections in May and have had to repair ground, and they are

:30:28.:30:32.

doing that by appealing to other voters, particularly those who felt

:30:32.:30:37.

abandoned by the Liberal Democrats and one of the ways they have done

:30:37.:30:41.

that is by saying that three schools, it is not a nasty Tory

:30:41.:30:45.

policy but will help the disadvantaged in society, and bail-

:30:45.:30:49.

out differentiation t take place by doing that. Getting scratchy in the

:30:49.:30:54.

Coalition? I think that is a good phrase, we

:30:54.:30:59.

can be loyally different and also head for the same goal. If we had a

:30:59.:31:02.

Cabinet meeting yesterday and there was a good sense of camaraderie and

:31:03.:31:07.

a sense that some of the things are not totally representative. Let's

:31:07.:31:17.
:31:17.:31:29.

In Afghanistan. Lance Corporal Paul Watkins. Corporal mark Palin. James

:31:29.:31:39.
:31:39.:31:40.

Wright. Lieutenant Daniel claque. Sergeant Barry Western Front kilo

:31:40.:31:45.

company. We should also remember a senior

:31:45.:31:53.

aircraft meant James Smart who died in a road traffic accident in Italy

:31:53.:31:56.

on 20th July whilst supporting operations in Libya. I pay tribute

:31:56.:32:01.

to their outstanding courage and selfishness. -- selflessness. They

:32:01.:32:06.

have given their lives serving our country and made our world safer

:32:06.:32:09.

and secured. Our thoughts and deeper sympathy will be with their

:32:09.:32:16.

families, friends and colleagues. This week sees the 10th anniversary

:32:16.:32:20.

of 200 macro so we should remember all of those who lost their lives

:32:20.:32:23.

that they and those who died in pursuit of a safer future

:32:23.:32:27.

throughout the last decade. I had meetings with ministerial

:32:27.:32:30.

colleagues and others and in addition to my duties in this house

:32:30.:32:36.

I will have further meetings today. The whole House will agree with the

:32:36.:32:39.

tributes the Prime Minister just made to members of the armed forces

:32:39.:32:43.

who made the ultimate sacrifice defending the country. Earlier this

:32:43.:32:46.

week the Government pushed through legislation which says terror

:32:46.:32:50.

suspects must be given access to mobile phone as an the internet and

:32:50.:32:53.

which ends relocation orders so they cannot be kept out of London

:32:53.:32:57.

in the run-up to the Olympics, or the Queen's Jubilee without

:32:57.:33:03.

emergency legislation. Well decent law-abiding people out there will

:33:03.:33:06.

be shocked to discover he is weakening protection for him whilst

:33:06.:33:10.

pushing through what people think is a charter of rights for would-be

:33:10.:33:15.

terrorists? I don't agree with that. We consulted very carefully with

:33:15.:33:20.

the police and security services in order to try to get to a better

:33:20.:33:23.

position. Control orders didn't have the confidence of the public,

:33:24.:33:27.

they didn't work in too many cases and the arrangements we have put in

:33:27.:33:32.

place will keep this country safe and have greater public consultants

:33:32.:33:39.

-- confidence. Can I thank the house and all of my

:33:39.:33:43.

Hexham constituency for the messages of support whilst I was in

:33:43.:33:46.

hospital. I am now recovered, thanks to the outstanding care of

:33:46.:33:51.

the NHS and its hard-working doctors and nurses. Would the Prime

:33:51.:33:56.

Minister agree with me, as many doctors and nurses did it must be

:33:56.:34:00.

our mission to improve and reform the NHS so the service we so

:34:00.:34:04.

cherish will improve with the challenges we face ahead?

:34:04.:34:09.

Can I say how good it is to see him back in his place and fully

:34:09.:34:13.

recovered. He is right, the point of our health reforms is to put

:34:13.:34:18.

doctors in charge, dish patients greater choice, heal the divide

:34:18.:34:22.

between health and social care and I believe will lead to a stronger

:34:22.:34:26.

NHS and better outcomes for patients.

:34:26.:34:36.
:34:36.:34:40.

Ed Miliband. Can I stop by joining the Prime Minister by giving our

:34:40.:34:50.
:34:50.:35:08.

condolences to the servicemen who All of them demonstrated tremendous

:35:08.:35:12.

bravery and courage in the line of duty and we send our deepest

:35:12.:35:16.

condolences to their family and friends. Let me also joined the

:35:16.:35:21.

Prime Minister in remembering all of those who died in the terrorist

:35:21.:35:27.

attacks of September 11th, 2001. We all said at the time we would never

:35:27.:35:30.

forget, and it is right we pay particular attention on this, the

:35:30.:35:36.

10th anniversary of September 11th so for the victims and their

:35:36.:35:39.

families, we show we are true to the words we spoke in the aftermath

:35:39.:35:46.

of those terrible attacks. Let me also, as the House returns, thank

:35:46.:35:50.

the police service he did such a tremendous job in the riots over

:35:50.:35:55.

the summer. It is on the subject of policing I want to start my

:35:55.:35:58.

questions to the Prime Minister. The Prime Minister wants to hold

:35:58.:36:02.

his elections for police commissioners, not alongside local

:36:02.:36:05.

elections as a resolute -- originally intended, but in

:36:06.:36:10.

November next year. How much extra money does he expect this to cost?

:36:10.:36:16.

It will cost an extra �25 million. This money won't be taken from the

:36:16.:36:24.

police budget. Mr Speaker, he is making about policy worse by

:36:24.:36:29.

wasting money. He could easily have decided, if he wanted to postpone

:36:29.:36:35.

these elections, to have them in 20th May 13. And indeed, subsequent

:36:35.:36:41.

elections will be held in 20th May 16. Can the Prime Minister tell us

:36:41.:36:45.

why he has decided to waste this money in this way? It is important

:36:45.:36:51.

to get this policy right and make sure it works. First of all, why is

:36:51.:36:56.

the party opposite so frightened of an election? What have they got to

:36:56.:37:03.

fear? And on the subject he called it, the Right Honourable Gentleman,

:37:03.:37:08.

called it that policy. Let me tell him what his own shadow policing

:37:08.:37:14.

minister said. He said this, only direct election, based on

:37:14.:37:17.

geographic constituencies will deliver a strong connection to the

:37:17.:37:22.

public which is crucial. Why is he so frying have having an election

:37:22.:37:28.

and proper police accountability? We know what the public know, this

:37:28.:37:33.

is the wrong priority for the country. What did we see during the

:37:33.:37:38.

riots? We saw visible, effective policing. The Prime Minister tells

:37:38.:37:42.

us the country cannot afford the current police budgets. We have got

:37:42.:37:48.

to cut the number of police officers by 16,000. But he tells

:37:48.:37:53.

the country it can afford �100 million and more as a result of his

:37:53.:38:00.

decision to waste money on 42 elected politicians earning over

:38:00.:38:06.

�120,000 a year. Mr Speaker, that could pay for 2000 extra police

:38:06.:38:11.

officers. Isn't the truth this is the wrong priority at the wrong

:38:11.:38:16.

time for the country? As ever he has got his figures are wrong.

:38:16.:38:23.

Because, the police authorities that only 6% of the country have

:38:23.:38:28.

heard of will be abolished and that all save money. Let me put it to

:38:28.:38:32.

him again, why is he frightened of direct elections so the police

:38:32.:38:37.

become accountable? He was responsible for the last Labour

:38:37.:38:43.

manifesto and this is what the last Labour Prime Minister said "the

:38:43.:38:47.

Home Secretary will bring forward proposals for directly elected

:38:47.:38:53.

representatives to give local people more control over policing".

:38:53.:39:00.

Why the U-turn? Mr Speaker, we know he has got the wrong priorities on

:39:00.:39:04.

the police and he is refusing to back down. He hasn't just got the

:39:04.:39:09.

wrong priorities on the police, but on the health service as well. Can

:39:09.:39:13.

the Prime Minister tell us, Mr Speaker, why the number of people

:39:13.:39:17.

who have had to wait more than six months for an operation has gone up

:39:17.:39:25.

by more than 60% since he came to office? I am not surprised he want

:39:25.:39:30.

to change the subject, because on policing he was having his collar

:39:30.:39:35.

felt because he has done a U-turn on the policy he used to be

:39:35.:39:40.

committed to. In our health service, as I said some moments ago, what we

:39:40.:39:44.

are seeing is more cancer patients getting treatment, more doctors in

:39:44.:39:51.

the NHS, fewer bureaucrats, a reduction... I know they don't like

:39:51.:39:57.

hearing. Order. There is too much noise and what is beginning to

:39:57.:40:03.

sound like orchestrated heckling. It should stop. The Prime Minister.

:40:03.:40:07.

The trouble is, they don't like hearing good news about what is

:40:07.:40:12.

happening in the National Health Service. And the fact is, if you

:40:12.:40:16.

look at the waiting times for outpatients, they have fallen since

:40:16.:40:22.

the last elections. Ed Miliband. is a complete non- answer, he

:40:23.:40:27.

cannot even answer the question. Mr Speaker, we are talking about

:40:28.:40:32.

people up and down this country who have been waiting longer for their

:40:32.:40:36.

operations. And the Government chief whip, he should care about

:40:36.:40:41.

these people who have been waiting longer for their operations. Let me

:40:41.:40:44.

tell the Government chief whip and the whole front bench what we are

:40:45.:40:53.

talking about. The number of people, 20th June 11, 20th June 10 the

:40:53.:40:58.

number of people waiting for operation for over six months, up

:40:58.:41:05.

by 20%. Those waiting for a heart operation, up by 62%. Those waiting

:41:05.:41:10.

for orthopaedic operations, of Price 72%. Those waiting For I

:41:10.:41:16.

surgery, the country and I asking for a simple explanation from the

:41:16.:41:21.

Prime Minister, why as he happen? The amount of time people are

:41:21.:41:26.

waiting for an out-patient operation has gone down. That has

:41:26.:41:30.

what happened. We have targets for 90% of people to get their

:41:30.:41:34.

treatment at within 18 weeks and those targets are being met. He may

:41:34.:41:40.

not like the truth, but that is the truth. I have to say to him, that

:41:40.:41:44.

is why you now see the Royal College of GPs, the Royal College

:41:44.:41:48.

of Physicians, the Royal College of Nurses all supporting our health

:41:48.:41:55.

reforms. He even C Lord Desai, the former health minister supporting

:41:55.:42:05.
:42:05.:42:07.

our health reforms. Labour have got themselves in a position of

:42:07.:42:13.

reposing all reforms on the NHS. Speaker, a figure Prime Minister is

:42:13.:42:17.

on another planet. He had his holidays interrupted, fair play to

:42:17.:42:22.

him, but it took time off his holiday to tell the morning News,

:42:22.:42:27.

the whole health profession is now on board for what is being done. Mr

:42:27.:42:32.

Speaker, does he read the newspapers? Only on Tuesday of this

:42:32.:42:37.

week, the BMA, the Royal College of GPs and the Royal College of

:42:37.:42:42.

midwives all rejected his bill, and that was this week. The truth is,

:42:42.:42:46.

under this Government we are seeing reckless and needless

:42:46.:42:50.

reorganisation of our public services. Police numbers down and

:42:50.:42:55.

waiting lists up. Under Labour quasar police officers up and

:42:55.:43:00.

waiting lists down. Why doesn't he do the right thing for the future

:43:00.:43:04.

of our public services and scrap both of these dangerous plans?

:43:04.:43:08.

Isn't it interesting he does not dare, in six questions mention the

:43:08.:43:18.
:43:18.:43:22.

economy. And when it comes sue the health reforms, when it comes to

:43:22.:43:28.

our health reforms, let me quote him at what the man his governments

:43:28.:43:31.

at plucked from the NHS to run the Department of Health, Lord Darzi

:43:31.:43:40.

says about these reforms "proposals for the NHS reform have ACAS this

:43:40.:43:45.

in the right direction and are to be welcomed". So now you have

:43:45.:43:48.

people working in the health service supporting the changes we

:43:48.:43:53.

are making and Labour wanting to cover the money and also cut the

:43:53.:44:01.

reform. Isn't it's no surprise the health minister said this "it is a

:44:01.:44:05.

tough fact of life, that what Labour says matters less almost

:44:05.:44:11.

more than what anybody else says". I could not have put that better

:44:11.:44:19.

myself. Does the Prime Minister agree with me that building

:44:19.:44:24.

stronger families and stronger communities is absolutely essential

:44:24.:44:30.

and key in dealing with anti-social and delinquent behaviour? She is

:44:30.:44:34.

absolutely right. I think this is important and I'm sure there will

:44:34.:44:39.

be all-party agreement on this, as well as a tough response from the

:44:39.:44:43.

criminal justice system to the riots, some exemplary sentences and

:44:43.:44:46.

the doubt by the court system and by praise or those who have been

:44:46.:44:51.

involved in speeding up the justice system. At the same time we need to

:44:51.:44:54.

do more to strengthen communities, strengthen families, increased

:44:54.:44:58.

discipline in schools and make sure the welfare system supports

:44:58.:45:02.

responsible behaviour. We will be bringing forward proposals along

:45:02.:45:05.

those lines and I hope they will have support from everyone in this

:45:05.:45:09.

house. Before the summer the Prime

:45:09.:45:15.

Minister took part in a TV documentary which highlighted crime

:45:15.:45:19.

and anti-social behaviour in my constituency. In his assessment,

:45:19.:45:23.

would he expect crime and anti- social behaviour on that estate and

:45:23.:45:26.

across Leicester to increase or decrease when he cuts 200 police

:45:26.:45:35.

officers from the Leicestershire I want to see crime and anti-social

:45:35.:45:40.

behaviour go down. And today, on the one in 10 of police officers

:45:40.:45:46.

are on the beat at one time. There are 25,000 police officers in back

:45:46.:45:50.

office jobs and not on the frontline, so we all have a

:45:50.:45:54.

responsibility to get the budget deficit under control. His party

:45:54.:45:59.

has committed to a �1 billion cut in the police, but we have to

:45:59.:46:02.

recognise it is about getting officers on the front line, and

:46:02.:46:07.

that is the debate we should be engaged in. In the way of the riots,

:46:08.:46:13.

can I commend the government and the mayor of London's support for

:46:13.:46:18.

communities like Enfield that were badly hit. Is this not a good time

:46:18.:46:21.

to support a global day of prayer that will take place in Wembley in

:46:21.:46:26.

London? I pay tribute to what the Mayor has done and to what the

:46:26.:46:29.

Department of community and local government has done to make sure

:46:29.:46:34.

money is available to rebuild communities. And the good thing

:46:34.:46:38.

about the high street support scheme of �20 million is 29 local

:46:38.:46:41.

authorities have already registered for VAT and I hope the money will

:46:42.:46:47.

be spent quickly to rebuild the high streets. -- for that. Does the

:46:47.:46:55.

Prime Minister support the closure of local police stations? It is up

:46:55.:46:59.

to Chief Constable has to work out how best to police their areas. But

:46:59.:47:02.

what I am finding from talking with police constables across the

:47:02.:47:06.

country is they want to put resources into visible policing on

:47:06.:47:10.

the streets. And they have the support of a government could sink

:47:10.:47:14.

the paperwork, outperforming pay and pensions, taking be difficult

:47:14.:47:18.

decisions to make sure we have more police on the streets than we what

:47:18.:47:25.

under Labour. Will the Prime Minister join me in sending a very

:47:25.:47:30.

clear message to the travellers at the a legal Dale Farm site that we

:47:30.:47:35.

all hope they move off peacefully it to avoid an unforced affection,

:47:35.:47:39.

but be in no doubt that the Government fully support Basildon

:47:39.:47:43.

council and Essex police in reclaiming this green belt land on

:47:43.:47:48.

behalf of the law-abiding majority? -- illegal. I give my support to

:47:48.:47:52.

the Essex police and to all the county and district councils that

:47:52.:47:56.

have been involved, and I pay tribute to the honourable member

:47:56.:48:01.

for the hard work he has put in on this. This is a basic issue of

:48:01.:48:06.

fairness. Everyone in this country has to obey the Lord, -- obey the

:48:06.:48:10.

law, including that law about planning permission and building on

:48:10.:48:14.

green belt land. When this has been done without permission, it is an

:48:14.:48:17.

illegal development and those people should be moved away, and I

:48:17.:48:24.

agree with the way he put that question. The Prime Minister oppose

:48:24.:48:28.

Labour's and T gangs laws and the riots happened and he is backing

:48:28.:48:33.

them. Now he wants to scrap we location powers, what happens

:48:33.:48:38.

before he admits them mess he is replacing them with his putting

:48:38.:48:43.

national security at risk? -- the mess. I do not accept that. When we

:48:44.:48:49.

looked at control orders in the review, we listened carefully 2am I

:48:49.:48:52.

five, the security services, the Metropolitan Police and all those

:48:52.:48:58.

involved -- we listened carefully to MI5. We make sure we had a

:48:58.:49:02.

system that was illegal, because the courts on picked so many of the

:49:02.:49:07.

last changes, that the public can have confidence end and there are

:49:07.:49:13.

safe. On the day when 200 people from Bombardier in Derby are here

:49:13.:49:18.

to see if we can change the arrangements for the Thameslink

:49:18.:49:22.

contract, can the Prime Minister give hope about future contracts

:49:22.:49:26.

and changing the tender arrangements? Ms we were left in

:49:26.:49:36.

from the last government! -- of the mass. -- the mess. I want to help

:49:36.:49:39.

Bombardier, that is an excellent company that employs people in

:49:39.:49:43.

Derbyshire and has done a brilliant job in this country for so many

:49:43.:49:48.

years. But before people shout from the party opposite, let me remind

:49:48.:49:53.

them, this procurement process was designed and initiated by the

:49:53.:49:58.

previous government and it is no good them shuffling off their

:49:58.:50:03.

responsibility, it is their responsibilities. Why does the

:50:03.:50:06.

government cannot agree with the police that children as young a

:50:06.:50:11.

seven it should be banned from having shotgun licences,? -- as

:50:11.:50:17.

young a seven. We should and forced proper laws and if they need

:50:17.:50:25.

toughening, I will look at that. Speaker, the Liberal Democrats make

:50:25.:50:30.

up 8% of this Parliament but seem to be influencing the free school

:50:30.:50:39.

policy, many issues like health and abortion. Order, order! The

:50:39.:50:44.

question from the honourable lady will be heard! Does the Prime

:50:44.:50:48.

Minister think it is about time we told the Deputy Prime Minister who

:50:48.:50:58.
:50:58.:51:05.

is the boss? -- he told. I wanted to hear the question, but I want to

:51:05.:51:10.

hear the Prime Minister's answer! know the honourable lady is

:51:10.:51:20.
:51:20.:51:21.

extremely frustrated about... Maybe I should start again! I am going to

:51:21.:51:31.
:51:31.:51:42.

Thank you, Mr Speaker, having scrapped the future jobs fund and

:51:43.:51:47.

BMAs, at young people not in education and employment and

:51:47.:51:53.

training is at a record high of 18.4%. When, Mr Speaker, when of

:51:53.:51:59.

things going to get better for our young people? -- when of things.

:51:59.:52:03.

This is a difficult situation in terms of young -- of youth

:52:03.:52:06.

unemployment, a situation getting worse during the economic good

:52:06.:52:12.

times, and there was a 40% increase in youth unemployment during the

:52:12.:52:17.

last government. There is now are a disturbing increase in those not in

:52:17.:52:20.

education and employment and training over 18, under 18 it is

:52:20.:52:26.

coming down. The steps we are taking on to improve schooling, to

:52:26.:52:30.

raise the participation age to 18 and increase the level of

:52:30.:52:36.

percentage -- of apprenticeships for to 380 this year. And we are

:52:36.:52:39.

introducing a biggest back-to-work programme that has taken place in

:52:39.:52:42.

this country since the 1930s and will be made available to young

:52:42.:52:46.

people in danger of being left out of employment, education and

:52:46.:52:52.

training. I have been working with local businesses, my councils and

:52:52.:52:59.

other organisations to help promote the economy. Given the economic

:52:59.:53:03.

background, it is imperative that we grow both the local and national

:53:04.:53:06.

economy. Can the Prime Minister tell us what new measures the

:53:06.:53:12.

government will introduced to help promote such growth? -- will

:53:12.:53:17.

introduce. I enjoyed seeing first- hand what is happening in Cumbria

:53:17.:53:23.

to get the local economy moving. The action we are taking improve --

:53:23.:53:27.

includes cuts in corporation tax, Enterprise Zones, but specifically

:53:27.:53:32.

for Cumbria, the money we are investing for super-fast broadband

:53:32.:53:36.

will help that county, at the degree the more it -- particularly

:53:36.:53:44.

the most rural areas, to make sure everybody can benefit. CCTV played

:53:44.:53:49.

a vital role in the arrest of many people in the riots cannot why is

:53:49.:53:53.

he undermining best and the protection of freedoms Bill? We are

:53:53.:54:01.

not! When the Prime Minister comes to consider next week's vicars

:54:01.:54:06.

report on the banks which have been rescued with fantastic amounts of

:54:06.:54:10.

taxpayers' money, would he have no truck with the argument that the

:54:10.:54:14.

banks cannot be reformed to prevent another crisis because they are

:54:14.:54:19.

struggling to cope with the crisis they have already created? Never

:54:19.:54:24.

again should British taxpayers have to bail out banks too big to fail!

:54:24.:54:28.

He is right that this Government must take action to reform the

:54:28.:54:33.

banks and that is what we are doing. We have set out how we are getting

:54:33.:54:36.

rid of the tripartite structure that failed under the last

:54:36.:54:40.

government, we are putting the Bank of England back in charge, and we

:54:40.:54:43.

are making sure we cannot have these catastrophic bank failures

:54:43.:54:49.

that cost the taxpayer in the future. We look forward to

:54:49.:54:54.

receiving the report. There are two things to a Secure, the safe and

:54:54.:54:58.

secured banking system, and also proper bank lending to small

:54:58.:55:04.

businesses particularly, and that is what government policy will aim

:55:04.:55:11.

for. Thank you, Mr Speaker. The Prime Minister will be aware that

:55:11.:55:15.

his government are consulting on their changes to housing benefit

:55:15.:55:21.

claims under the criteria of under occupancy, this will adversely

:55:21.:55:26.

affect 450,000 disabled people, 33,000 in the north-east alone his

:55:26.:55:33.

stand to lose an average of �607 per year, a substantial number in

:55:33.:55:37.

my constituency. How does this meet the government's fairness test?

:55:37.:55:42.

This is a specific exclusion to deal with people who have careers

:55:42.:55:46.

living in the home, -- but we have to reform housing benefit. Housing

:55:46.:55:50.

benefit was one of those budget items that was out of control. In

:55:50.:55:56.

London, we had some families claiming �80,000 of housing

:55:56.:56:02.

benefits just for one family. So this doesn't need to be reformed. -

:56:02.:56:09.

- does need a. He says, how many? Frankly, too many! It is no good

:56:09.:56:13.

for the party opposite to complain about every reduction to public

:56:13.:56:17.

spending when they left us with the budget -- with the biggest budget

:56:17.:56:22.

deficit in Europe! The Prime Minister has listened to Liberal-

:56:22.:56:28.

Democrat colleagues by delaying the police elections until next year.

:56:28.:56:31.

Will he now listen to Conservative colleagues and take that

:56:31.:56:38.

opportunity to hold a referendum on Europe? That is an ingenious way of

:56:38.:56:42.

putting the question! As a explained yesterday, I want us to

:56:42.:56:46.

be influential in Europe about the things that matter to our national

:56:46.:56:50.

interest, promoting the single market, pushing forward for growth,

:56:50.:56:55.

getting low energy prices. But I do not see the case for a referendum

:56:55.:57:01.

on Europe. We are in Europe and we have to make it work for us! Does

:57:01.:57:05.

the Prime Minister agree with his Housing Minister that because of

:57:05.:57:08.

the economic policies of the government, we now have a great

:57:08.:57:13.

crisis? And when he does a U-turn, it will he cut VAT, which has

:57:13.:57:20.

Labour's policy, will he give tax cuts to the rich? -- will he cut.

:57:20.:57:25.

He obviously had time to read this, which says that increasing VAT was

:57:25.:57:31.

the policy of Labour in the last election. He should focus on the

:57:31.:57:35.

fact the person responsible for Labour's economic policy at the

:57:35.:57:42.

lack -- at a last election said it had no credible policy. And nothing

:57:42.:57:49.

has changed for Labour! Will the Prime Minister join me in

:57:49.:57:53.

congratulating members from both sides of this House in both houses

:57:53.:57:56.

of this Parliament for their generosity in responding to the

:57:56.:58:00.

letter from Mr Speaker and the Lords be kept in supporting a gift

:58:00.:58:05.

for her Majesty the Queen for her forthcoming died end -- Diamond

:58:05.:58:10.

Jubilee from this Parliament? delighted to join the honourable

:58:10.:58:14.

gentleman in praising everyone who contributed to this very

:58:14.:58:18.

imaginative and I think sensible gift for her Majesty's Diamond

:58:18.:58:23.

Jubilee. And perhaps I can pay it a particular tribute to him, if

:58:23.:58:29.

because he has worked so hard to make this work. -- because. To have

:58:29.:58:32.

a Diamond Jubilee is an extraordinary think we will be able

:58:32.:58:37.

to celebrate this lifetime. With electricity and gas bills going up

:58:37.:58:44.

by 20%, and 6 million families in this country now facing a fuel

:58:44.:58:50.

poverty, does the Prime Minister still think it was right to cut the

:58:50.:58:56.

winter fuel payments to pensioners by �100? We are going ahead with

:58:56.:59:00.

the winter fuel payments set out by the last Labour government in that

:59:00.:59:04.

budget. At the same time, we are increasing the cold weather

:59:04.:59:08.

payments on a permanent basis. So this Government is being more

:59:08.:59:18.

generous than the last government! In looking to address the economic

:59:18.:59:26.

recovery, is it better to help those who have as little as �100 a

:59:26.:59:31.

week of tax, but those who take home more than 10 times that amount

:59:31.:59:38.

after tax? Let me point out two things we have done. One is to lift

:59:38.:59:45.

�1 million -- �1 million out of income tax, a Coalition agreement.

:59:45.:59:51.

-- 1 million people. We have increased in over two years by �290

:59:51.:59:55.

the tax credits that code to the poorest families in the country,

:59:55.:00:00.

and that is why we have taken difficult decisions -- that go to.

:00:00.:00:05.

But we have not had an increase in child poverty. In better economic

:00:05.:00:13.

times under the last government, child poverty went up. Bringing

:00:13.:00:18.

Siemens manufacturing wind turbines to the Humber is vital for jobs and

:00:18.:00:22.

a breakthrough on renewable energy and hopefully increasing the UK

:00:22.:00:26.

industry in this area. Local councils and businesses are doing

:00:26.:00:31.

what they can to attract Siemens to the area, but we face strong

:00:31.:00:35.

foreign competition. Will this Government do what the last

:00:35.:00:40.

government did and back this? Will the Prime Minister do everything he

:00:40.:00:45.

can to secure this? I agree with this, it is vital for the future of

:00:46.:00:50.

the economy and for the future of the area she represents. I met with

:00:50.:00:53.

Mum -- with members of parliament from Humberside to discuss this and

:00:53.:00:57.

have spoken to the head of Siemens about the importance of this

:00:57.:01:01.

investment, we are carrying on with this extra money to go into the

:01:01.:01:05.

development of this industry and we packet all the way. At the meeting

:01:05.:01:10.

this morning with organisations working dent the Horn of Africa,

:01:10.:01:15.

representatives expressed their gratitude that the British

:01:15.:01:20.

Government has been so generous -- in the Horn of Africa. That famine

:01:20.:01:23.

is getting worse, will this Government continue to provide

:01:24.:01:28.

international leadership to help the people in East Africa? I can

:01:28.:01:32.

certainly give the honourable lady that assurance. The response of the

:01:32.:01:36.

British public has been remarkable. These are difficult times, but they

:01:36.:01:40.

have shown an incredible generosity and led the world in the

:01:40.:01:43.

contributions they have made. And because this Government has made

:01:43.:01:48.

the decision to fulfil a pledge of reaching 0.7% of national income

:01:48.:01:52.

going into aid, we are leading the world in the amount of money we are

:01:52.:01:56.

putting into the Horn of Africa back to vaccinate children, to save

:01:56.:02:00.

lives and to recognise this is an ongoing humanitarian crisis. Does

:02:00.:02:05.

the Prime Minister agree with me that his Housing Minister is an

:02:05.:02:09.

absolute star? In the face of declining planning permissions for

:02:09.:02:14.

new build homes, in the face of the lowest number of new homes being

:02:14.:02:22.

built at this year in 12 months, lower than any year of Labour's

:02:22.:02:27.

administration for house building, his Minister's great idea is to ask

:02:27.:02:35.

councils to build more moorings for houseboats! Fantastic!,. I thought

:02:35.:02:42.

he was doing so well until he got all political! -- I thought. House

:02:42.:02:46.

building is too low in this country and it is a shocking statistic that

:02:46.:02:51.

the typical first-time buyer is now in their mid-thirties. So we do

:02:51.:02:55.

need to change and more houses to be built, and I think my Housing

:02:55.:03:01.

Minister is doing a first class job! While much attention is being

:03:01.:03:06.

paid to the military activities in Libya over the summer, will the

:03:06.:03:11.

Prime Minister join me in congratulating captain Steve Norris

:03:11.:03:16.

and the crew in the work they are doing to combat drugs in the

:03:16.:03:20.

Caribbean? They intercepted �50 million of cocaine over the summer

:03:20.:03:26.

and have been helping humanitarian affects after hurricane Irene.

:03:26.:03:32.

is an important point. We should focus on and praise the incredible

:03:32.:03:36.

work our services have done in Libya and Afghanistan, there are

:03:36.:03:41.

the ongoing tasks like trucks in the West Indies, protecting the

:03:41.:03:45.

Falkland Islands, the work took prevent piracy off the Horn of

:03:45.:03:50.

Africa, all these tasks people are giving a lot of time and effort to

:03:50.:04:00.
:04:00.:04:06.

and we should praise and thank them Neighbour leader, Ed Miliband went

:04:06.:04:13.

on elected police leaders. And then on to waiting lists where there are

:04:13.:04:18.

some figures we will look at in a minute. The dog that did not bark

:04:18.:04:25.

was the economy, even though it is on everybody's minds at the moment.

:04:25.:04:29.

Wondering whether there will be any growth this quarter in the British

:04:29.:04:37.

economy. We speculated, and many of you have speculated on Twitter that

:04:37.:04:41.

Labour could not go on the economy because this is the day Alastair

:04:41.:04:45.

Darling's book comes out. It did not happen and we will hear from

:04:45.:04:51.

our experts in a minute. But we want to hear from you first.

:04:51.:04:58.

Matt in Highgate said David Cameron wrong-footed Ed Miliband on

:04:58.:05:01.

policing and the NHS. I would have thought questions on the economy

:05:01.:05:04.

would have been a more productive area for the leader of the

:05:04.:05:10.

opposition. For example the cuts seem to have snuffed out growth.

:05:10.:05:14.

And of a handsome and Al says it was a win for Ed Miliband. The

:05:14.:05:20.

Prime Minister could not answer the questions put to him and at the

:05:20.:05:24.

same time sacking 16,000 police officers. The silence on the Tory

:05:24.:05:30.

benches on that one was clear. This comes from Steve in Wiltshire,

:05:30.:05:36.

saying belabour are two-faced when it comes to wasting money when it

:05:36.:05:38.

was there party that got this country into this mess in the first

:05:38.:05:43.

place. This on a says that they are making

:05:43.:05:48.

police redundant, so much for not affecting frontline services.

:05:48.:05:54.

Police stations are being closed and others downgraded.

:05:54.:05:59.

There was also this from David in Hexham about the elections for

:05:59.:06:03.

police commissioners. The Prime Minister asked why Ed Miliband is

:06:03.:06:08.

so frightened of an election it sounds as though the Prime Minister

:06:08.:06:13.

is intending these to be political. On waiting lists we had a few.

:06:13.:06:17.

Chris Kelly said what a joke, one side says waiting lists have gone

:06:17.:06:23.

up, one side says they have gone down. My mother had to wait six

:06:23.:06:27.

months for eye treatment and it seems like a long time for me.

:06:27.:06:33.

Andy from East Sussex says I will have waited 36 weeks for my knee

:06:33.:06:36.

operation if it goes ahead in September.

:06:36.:06:40.

This came from a Freedom of Information request in earlier in

:06:40.:06:44.

the year. We will try to get more recent ones, but hospital waiting

:06:44.:06:49.

times have increased by 60% over the last year, with patients having

:06:49.:06:53.

to wait several months for vital tests. And hundreds of patients

:06:54.:06:56.

have waited more than 13 weeks to find out if they have cancer or

:06:56.:07:04.

heart disease. Let me ask you both this. Why, six

:07:04.:07:09.

years after it has been founded and 100 bn the year being spent on it,

:07:09.:07:13.

why do we have a health system where everybody has to wait six

:07:13.:07:18.

months? I think we need to reform the NHS and bring down those

:07:18.:07:24.

waiting times. If I may say it was a very selective use of statistics

:07:24.:07:28.

by Ed Miliband. He picked on one particular elements were waiting

:07:28.:07:32.

times may have gone up, but there are other elements where they may

:07:32.:07:37.

have gone down. But with the NHS, we are meeting the target to treat

:07:37.:07:42.

90% of people within 18 weeks. The reason for that is we made a very

:07:42.:07:46.

big call to protect spending on the NHS at a time of massive cuts

:07:46.:07:51.

elsewhere. At a time when the Labour Party went into the last

:07:51.:07:56.

election saying there were cuts pending on the NHS. Ed Miliband's

:07:56.:08:00.

Polar Sea he stood on at the last election means the situation would

:08:00.:08:05.

have been a whole lot worse. both parties have been in power for

:08:05.:08:11.

long periods of time. You have both always said the health service is a

:08:11.:08:16.

priority. And you had both spent a lot of money on it as well. And we

:08:16.:08:19.

have a health system, and I don't think it is true in France and

:08:19.:08:23.

Germany, and if you have insurance it is not true in the United States,

:08:23.:08:29.

people are waiting six months to have scams, tests. It is very

:08:29.:08:35.

worrying. You need these things right away. Under the Labour Party,

:08:35.:08:40.

the average waiting time was below under 18 weeks. It was 18 months

:08:40.:08:46.

when we came into power. It was 10 weeks on average when we left power

:08:46.:08:51.

in 20th May 10. What we have seen this year is a huge disruption of

:08:51.:08:56.

the NHS, a reorganisation of the NHS and people worrying about their

:08:56.:09:00.

jobs and being made redundant. Standards are slipping, but it is

:09:00.:09:06.

waiting times in A&E or on waiting lists for operations. Prior

:09:06.:09:11.

understand that, he said it is running it better than you, you

:09:11.:09:16.

said you run it better than they are. What is it about our health

:09:16.:09:21.

service that still has people, people who are distraught, worried

:09:22.:09:25.

and have nowhere else to go because they cannot afford to go deprive it,

:09:25.:09:31.

having to wait six months for quite crucial medical procedures? If I

:09:31.:09:38.

could just make the point that I think we will both agree on. When

:09:38.:09:40.

you do international comparisons with other systems in other

:09:40.:09:46.

countries, the NHS does very well. He does very well across a range of

:09:46.:09:51.

indicators. One of the most important things about the NHS is

:09:51.:09:55.

it is one of the only Systems in the world where people on lower

:09:55.:10:03.

incomes are less likely to get the treatment they need quickly.

:10:03.:10:08.

sadly disrupted. The answer to your question, Andrew is it is an

:10:08.:10:13.

ideological playground. The Conservatives have come in what the

:10:13.:10:17.

marketing of services and have created disorder and uncertainty.

:10:17.:10:24.

That is impacting on frontline patient services. So, the Alastair

:10:24.:10:28.

Darling book is so toxic, that for a while Labour won't be added to

:10:28.:10:34.

talk about the economy? I think Ed Balls will have a thing or two to

:10:34.:10:41.

say about the economy this afternoon. They have an economic

:10:41.:10:47.

policy, they have something to say about the 50 pence debate which is

:10:47.:10:50.

mainly if there is going to be a review of it is should be carried

:10:50.:10:56.

out by the Op Art and not be HMRC. But clearly the Alastair Darling

:10:56.:11:00.

Baulk means any questions to anybody to the Labour Party must

:11:00.:11:05.

begin with the question, do you agree with Alastair Darling your

:11:05.:11:09.

economic policy at the moment is not credible. Do you agree with

:11:09.:11:16.

that? I don't agree with that. The have a very clear policy. We went

:11:16.:11:20.

into the last election saying we would halve the deficit. You never

:11:20.:11:26.

told us how? We didn't, and we went in Government. What one major thing

:11:26.:11:34.

would you cut? The Government has cut too far, too fast and that

:11:34.:11:38.

means... We have been clear about some of the things we would do.

:11:38.:11:44.

What one major thing would you cut? We are not in Government at the

:11:44.:11:49.

moment. I'm not asking for 20, just one would be night. The talked-

:11:49.:11:54.

about 12% Police cuts and we think the 20% Police cuts the Government

:11:54.:12:01.

is doing is too much. But we agreed 12% is feasible. We were looking at

:12:01.:12:04.

the Welfare Reform and we would have been able to make savings in

:12:04.:12:11.

the NHS. Because we wouldn't have been undertaking a �2 billion

:12:11.:12:15.

restructuring of the NHS, we would have had a stable NHS where we

:12:15.:12:19.

could have squeezed greater efficiency. Within the Labour Party

:12:19.:12:23.

there is a debate about how they earned the right to talk about the

:12:23.:12:28.

economy, do they talk too much about the past? There's an argument

:12:28.:12:36.

the next election won't be about cutting and the rates as it is, but

:12:36.:12:40.

what is fascinating is what process they go through to reach that point.

:12:40.:12:44.

It is very much a live debate within the party at the moment.

:12:44.:12:49.

other thing we saw happening is because of Nick Clegg's policy as

:12:49.:12:53.

you have called it, Royal difference elation, something like

:12:53.:13:02.

that. The Tory backbenchers are saying if he can do that, we want

:13:02.:13:07.

some of that. We saw a reflection of that on the floor just now. It

:13:07.:13:13.

is an issue now for party discipline. If you talk to MPs,

:13:13.:13:18.

Conservative backbenchers, they will say, if the Chief Whip said

:13:18.:13:23.

you do not raise it, then you do not raise it. But so many Liberal

:13:23.:13:28.

Democrats are wanting difference policies talked about, there's no

:13:28.:13:35.

restraint on the backbenches. It allows all the latent issues will

:13:35.:13:40.

be more vocal about it. I've been Europe is one of them. Rumbling on

:13:40.:13:47.

the backbenches? The to normal for any Government. If we had won the

:13:47.:13:54.

last General Election, it is how Westminster happens. The Cabinet is

:13:54.:13:58.

united and we recognise we need an enterprise economy and that means

:13:58.:14:05.

having competitive tax rates. But it has to be done fairly, we have

:14:05.:14:10.

to carry the country with us. We agree completely on that. We will

:14:10.:14:15.

have to leave it there. Are you going to the party conferences?

:14:15.:14:20.

will be. The Liverpool, Birmingham and Manchester, but not in that

:14:20.:14:25.

order. I can tell you can't wait!

:14:25.:14:29.

I am looking forward to it, that is how sad I am.

:14:29.:14:31.

It is the highlight of the political year.

:14:31.:14:38.

The highlight of my life. It you live in the flightpath of a

:14:38.:14:43.

major airport you're probably not a fan of airport expansion. There was

:14:43.:14:47.

a plan to build a third runway at Heathrow but it was scrapped as the

:14:47.:14:51.

result of an election pledge from the Conservatives. Now, no new

:14:51.:15:01.
:15:01.:15:19.

runways are planned in the south- International air travel is the

:15:19.:15:24.

lifeblood of multinational companies. And despite advances in

:15:24.:15:27.

video-conferencing, that face-to- face meeting is vital and demand

:15:27.:15:33.

for that is growing. Heathrow is operating at 98% capacity at the

:15:33.:15:37.

moment. The government has ruled out runway three as an option or

:15:37.:15:41.

any increase incapacity in the south-east, so the prospects for

:15:41.:15:45.

business travel of frankly week. The government is doing a good job

:15:45.:15:49.

of looking at how to make airports better rather than bigger in the

:15:49.:15:56.

south-east. But the truth is that 68% are stacking above our heads

:15:56.:16:01.

and the problem comes back to capacity again. Another proposed

:16:01.:16:05.

solution is high-speed rail, a great idea for joining up the north

:16:05.:16:09.

and south of the country, but it only releases 4% of capacity at

:16:09.:16:19.
:16:19.:16:22.

Heathrow, so worth having, but not a gain changes. -- a game change of.

:16:22.:16:24.

Long-term, there are various proposals for new airports, the

:16:25.:16:30.

Thames estuary, Birmingham, but for business, those solutions will not

:16:30.:16:34.

come soon enough. One argument against increasing capacity or is

:16:34.:16:38.

climate change concerns and the Government is right to put pressure

:16:38.:16:43.

on airlines and airports to do as much as possible to combat carbon

:16:43.:16:48.

emissions. But we have to recognise if you cannot fly out of London,

:16:48.:16:53.

people may fly out of Frankfurt. The government could look at

:16:53.:16:57.

unpopular solutions like making plane tickets on affordable to

:16:57.:17:00.

family and friends and allowing businesses to take those tickets,

:17:00.:17:04.

but I think the government should look again at expanding airport

:17:04.:17:10.

capacity in the south-east. Otherwise, we risk business being

:17:10.:17:18.

done in Frankfurt or Paris instead of London.

:17:18.:17:23.

And Baroness Valentine is here. On your last point about risking

:17:23.:17:27.

losing business to Frankfurt for example, is their hard evidence --

:17:27.:17:32.

hard evidence London has lost business to other European capitals

:17:32.:17:37.

as a result of not having deferred runaway? People expect companies

:17:37.:17:42.

will move from say Paris -- from London to say Paris or Geneva,

:17:42.:17:48.

teams are being put together our offshore. 50% tax is not helpful,

:17:48.:17:53.

immigration tax as well, so the issue of being open to business,

:17:53.:17:58.

for the UK to be seen to be open, is driving people offshore. But it

:17:58.:18:04.

is difficult when people here, if they are losing business if that

:18:04.:18:07.

has not happened specifically because of a third runway, and also

:18:07.:18:12.

that does not seem to be much support for this Heathrow expansion.

:18:12.:18:16.

The Coalition parties opposed a third runway, Boris Johnson is on

:18:17.:18:21.

board, you have a local authorities and environmental bodies, is this

:18:21.:18:28.

argument dying a death? We are all worried about the economy. The UK

:18:28.:18:32.

is a global trading nation and our links are the lifeblood of that

:18:32.:18:39.

global trade. Heathrow is running at 98% capacity. And that is

:18:39.:18:45.

thoroughly unhealthy now, but when demand doubles by 2050, it is set

:18:46.:18:50.

to double, it is constraining fat demand and it is not helpful to the

:18:50.:18:55.

economy. But you do not have support, politically,

:18:55.:18:59.

environmentally, nobody is backing your case. That is not entirely

:19:00.:19:05.

true. Many people understand the economic argument that you need the

:19:05.:19:10.

National -- international air links to make future international

:19:10.:19:17.

relationships, and build relations with emerging economies and all the

:19:17.:19:20.

economies. So there is support from business saying we need this. You

:19:20.:19:25.

would have to ask other people. We are concerned the government does

:19:25.:19:29.

not avoid this. It seems the Government and the opposition are

:19:29.:19:34.

avoiding this. Looking at the environmental aspect, one of the

:19:34.:19:39.

big push us by the campaigners when they opposed the third runway, --

:19:39.:19:45.

one of the big issues. There could be unsafe for nitrogen dioxide

:19:45.:19:51.

levels, it is claimed, what do you say to that? One is carbon-dioxide

:19:51.:19:58.

and won his local noise. There are different arguments around each.

:19:58.:20:01.

There is a trade-off between what you do with cars running around

:20:01.:20:05.

Heathrow and what you do with the air, and you can offset depending

:20:05.:20:11.

on what you do. Can I put the economic argument to you? The

:20:11.:20:15.

government's message and priority at the moment is promoting growth,

:20:15.:20:20.

you of boosting jobs and trying to get economic productivity and no to

:20:20.:20:24.

a third runway that would do exactly that. Baroness Valentine

:20:24.:20:27.

makes a good point about the importance of thinking about growth,

:20:27.:20:32.

but it has to be sustainable growth. I do not think it is sustainable to

:20:32.:20:39.

keep on expanding Heathrow. Where is the capacity going to go? We --

:20:39.:20:43.

we want the economy to grow over the next decade and the question is,

:20:43.:20:48.

is it sustainable to keep adding lanes to the M25 or keep growing

:20:48.:20:53.

Heathrow, do we look at something else? You sped -- she said high-

:20:53.:20:59.

speed rail would reduce the need for flights by 4%, but look at what

:20:59.:21:03.

happens to Japan. Way you have a fully developed high-speed rail

:21:03.:21:08.

network, it has a massive impact on the number of domestic flights --

:21:08.:21:13.

way you have. Look at the air travel between Tokyo and Osaka, it

:21:13.:21:19.

has been massively affected. Will high-speed rail be enough to absorb

:21:19.:21:22.

that extra capacity without expanding an airport in the south-

:21:22.:21:27.

east? I do not say it would be a panacea that deals with the entire

:21:27.:21:32.

problem, there is a trade-off. We have other airports in London and

:21:32.:21:36.

we have to find a sustainable way of dealing with the pressures at

:21:36.:21:41.

Heathrow and I do not think a third runway would be sustainable. If you

:21:41.:21:45.

ruling out a third runway in the south-east? We want to try more

:21:45.:21:49.

imaginative ways to tackle the problem. The maximum it would

:21:49.:21:54.

replace from Heathrow is 4%, domestic flights. It has nothing to

:21:54.:21:58.

do with our connections to the rest of the world and even if you took

:21:58.:22:05.

out 4%, you will be talking about about 94%. Other airports run to

:22:05.:22:10.

75%, so that is not the solution. Labour supported a third runway and

:22:10.:22:15.

you are now reviewing the policy, are you going against it? It is

:22:15.:22:19.

under review and we want to make sure if there is airport expansion

:22:19.:22:24.

in the south-east, it is compatible with our obligations two emissions.

:22:24.:22:28.

We need to make sure that it is hoped sustainable and carbon

:22:28.:22:33.

emissions, we have a big issue with air quality in London, particularly

:22:33.:22:37.

with the Olympics coming up where we could face large fines from the

:22:37.:22:42.

EU. We have not ruled out and put expansion in the south-east, not

:22:42.:22:46.

unlike the Conservatives. With high-speed rail, a lot of

:22:46.:22:50.

Conservative MPs are fighting against it. It is not a short-term

:22:50.:22:54.

solution and will not be ready by 2024 stop only to Manchester, I

:22:54.:23:04.

mean Birmingham. -- by 2020. Only to Manchester, I mean Birmingham.

:23:04.:23:09.

The Japanese started then network in 1964, so it takes a very long

:23:09.:23:15.

time. -- the network. Is the Government doing have a long term

:23:15.:23:21.

think? A long-term thing is to have a shift from air travel to rail

:23:21.:23:24.

travel and that is what we are doing. No time for another

:23:24.:23:27.

question! Now the moment the Culture

:23:27.:23:31.

Secretary has been waiting for. It's his big idea and he won't be

:23:31.:23:33.

knocked off course by trifling matters like the phone hacking

:23:34.:23:36.

scandal or decisions about the ownership of one of our major

:23:36.:23:38.

broadcasters. Because Jeremy Hunt has identified what the British

:23:39.:23:42.

public have been crying out for - local city-based TV stations of the

:23:42.:23:49.

kind common in the United States. Here is David Thompson with a sneak

:23:49.:23:56.

preview of what we've got to look forward to.

:23:56.:24:03.

We cut to ABC news channel, a weekday mornings. -- welcome to.

:24:03.:24:08.

Sadly, which almost certainly will not have meteorologists called

:24:08.:24:12.

Casanova, but if Jeremy Hunt gets his way, we will get local

:24:12.:24:18.

television stations like they do it in the USA. The Culture Secretary

:24:18.:24:23.

wants to see as many as 20 news stations, with the first starting

:24:23.:24:27.

by 2013. The project would be funded by a �40 million chunk of

:24:27.:24:32.

the TV licence fee but would be self financing after that. Are in

:24:32.:24:37.

the morning, breaking news is crucial... Fans say it will hold

:24:37.:24:41.

local politicians to account and give community is a bespoke news

:24:41.:24:47.

service, so local news for local people. -- communities. Opponents

:24:47.:24:51.

claim it many places will not get a station because of signal problems

:24:51.:24:55.

and that it might not be financially viable. Local TV has

:24:55.:24:59.

been tried in this country but has yet to succeed as it has in the USA

:24:59.:25:05.

and Europe. Whatever the rights and wrongs, however, Jeremy Hunt

:25:05.:25:09.

probably does not want to see this. Obviously, the people who live here

:25:09.:25:13.

are not satisfied with this explanation. White, so what do you

:25:13.:25:19.

want now? -- the right. If I have to teach you have to be a reporter,

:25:19.:25:24.

I will do that later. Do that later, but the lady expressed herself and

:25:24.:25:29.

I am here, is there a question you would like to ask me? I would give

:25:29.:25:34.

you lessons in how to be a reporters. I will give you lessons

:25:34.:25:39.

in how to be an editor, because I was once you're past. For you were

:25:39.:25:49.
:25:49.:25:53.

ones, but what happened? -- I was once you're past. -- your boss. You

:25:53.:25:58.

were ones, what happens. Local newspapers are closing in droves,

:25:58.:26:03.

why it local television stations? The need to adapt their model and

:26:03.:26:08.

people are passionate about what is going on in their area -- they need

:26:08.:26:13.

to. Local papers and radios are popular, why are we won of the only

:26:13.:26:17.

countries that does not have good local television? What are local

:26:17.:26:21.

television stations closing all the time if they are so popular?

:26:21.:26:25.

have never had a model before that brings down the cost sufficiently

:26:25.:26:29.

and the model does not cover the whole country, but unfortunately,

:26:29.:26:33.

because we are working with existing transmitters. It covers

:26:33.:26:40.

60%, most of the local -- of the major towns, and it is, but we can

:26:40.:26:44.

bring down the Costa around the cost of running a local newspaper.

:26:44.:26:51.

-- bringing the cost. I would expect them in larger places to do

:26:51.:26:57.

a lot of broadcasting. People are never going to know when

:26:57.:27:02.

the and-a-half of broadcasting is. That is a condescending view of the

:27:03.:27:08.

world. The what is wrong with that?! -- what is. It depends on

:27:09.:27:13.

the assumption that only broadcast by Andrew Neil at the BBC are worth

:27:13.:27:22.

watching! What is wrong with that?! Under these plans, on that hour and

:27:22.:27:26.

a half a day, that is 30,000 additional broadcast hours of local

:27:26.:27:31.

news that we do not currently have. Local news is under threat already,

:27:31.:27:37.

a regional news on the BBC networks and on the ITV network, why

:27:37.:27:41.

shouldn't -- shouldn't we be use that instead? The issue is cost and

:27:41.:27:49.

quality. -- should and we increase that instead? Is this going to be

:27:49.:27:53.

sustainable and is the amount of advertisers out there to support a

:27:53.:27:58.

local television station Alba and where will they be? It is unlikely

:27:58.:28:08.
:28:08.:28:08.

to be out in wild Scotland or wild Wales. I am very surprised Labour

:28:08.:28:15.

is against this. We are not against it! We are asking questions. Let me

:28:15.:28:18.

finish, look at the general election last year, that was

:28:18.:28:23.

transformed by those leaders' debates, couldn't we have that in

:28:23.:28:31.

our country for local democracy? Speaking of local participation, if

:28:31.:28:41.
:28:41.:28:41.

you can get the winner. It is John Stevens, the winner.

:28:41.:28:47.

Do not give the address. He is only the media Secretary! The year was

:28:47.:28:54.

Is the 50p tax rate holding back an already feeble recovery? A group of leading economists think so and are calling on the Chancellor to scrap it. The programme asks if they're right.

As the train arriving on platform two is set to be from Germany, MPs ask why the contract for Thameslink trains went abroad instead of to Derby. There are warnings that planes could go abroad too if the government doesn't do anything about airport expansion in south-east England. The programme hears from London First's Baroness Valentine.

Plus, could city TV be just what British viewers have been waiting for?

Discussing the issues and reviewing the first PMQs since July are Culture Secretary Jeremy Hunt and the Shadow Environment Secretary Mary Creagh.


Download Subtitles

SRT

ASS