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Conference Special

Andrew Neil and Jo Coburn are in Manchester with live coverage of Conservative leader David Cameron's party conference speech.


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Afternoon. Welcome to this final Daily Politics special of the

:00:31.:00:36.

2011AD conference season. We are live from the Conservative Party

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Conference. Last year the Prime Minister told this conference the

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British economy was "Out of the danger zone." This year with the

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economy stagnant and the eurozone crisis heading towards a

:00:48.:00:52.

potentially disastrous climax, Britain is back this the danger

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zone. David Cameron will attempt to reassure the faithful and convince

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the wider public that he has the leadership and the vision to steer

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Britain through the grimmest economic outlook for the country

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since the IMF bailed us out in the mid-1970s.

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We will bring you all the build-up to this important speech, which we

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expect to begin in about half an hour. We will bring you live and

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uninterrupted coverage. At least we hope uninterrupted. Jo's in

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Manchester too. As you can see, people are queuing to get into the

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conference hall. I'll be outside, getting reactions to the Prime

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Minister's speech. We will look back over David Cameron's year,

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with former Tory leadership hopeful Michael Portillo.

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Cameron's recipe for gaining power was to move the Conservatives to

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the soft-centre of British politics, hugging the National Health Service

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and embracing climate change. In office, he's moved away from the

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middle-ground. That does not mean he'll lose the next general

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election. And they toil over the final text,

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but as we have discovered today, things don't always go to plan. I

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will talk to a former speech writer who thinks the speech should be

:02:12.:02:22.
:02:22.:02:25.

If he gets his way we'll all be out of a way. How dare he suggest we

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scrap the speech writer's speech. The party faithful here are waiting

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to get in. It has been a low-key conference for them. They hope the

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Prime Minister will fire them up and send them away with a spring in

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their step. Difficult economic times is the backdrop to his speech,

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as we await the Prime Minister's speech. He may go through a final,

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final draft we have the warmest act. Benedict Brogan from the Telegraph

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and Paul Waugh from Politics Home. I come to you, Ben, because the

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Telegraph has flashed on it. You were briefed by Cameron's people

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that he told us we would have to pay off our credit cards and that

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was the best way to help the British economy. By this morning,

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that was not the brief. What happened? After our splash emerged

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and others led with it, you could tell there were anxious faces on

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the Downing Street team. They were looking worried. That is not the

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message they intended to get out. That is the problem with these pre-

:03:31.:03:38.

briefing speeches, you never know which lines journalists will find

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interesting. This is what happens at party conferences. In the end

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the authorised version of the speech is the one he delivers from

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the stage. I have not seen the rowing back in recent times as big

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as this. It's hard for them to get out of. All parties do, they say

:03:57.:04:01.

the media misunderstands. They printed out chunks of the speech

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and gave it to us. They did. The key line was, that means households,

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all of us are paying off... Should be paying off the credit card and

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store bills. They have amended it to say that households are paying

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off credit card and store card bills. Although there's no plan B

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for the economy there is a plan B to change the script to make sure

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he's not as out of touch as that would sound. The embarrassment for

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them, and the spin doctors are running all over the place, some

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tried to get into this studio when we were live on air. The

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embarrassment is at a time of grim economic news a Government should

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be presenting a picture of competence and conviction and a

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safe pair of hands? The difficulty for David Cameron is he wants to

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sound optimistic this afternoon while all around us and beyond

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Manchester the world seems to be falling apart, at least

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economically. That is hardly reassuring for him. The difficulty

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is he has an economic challenge. On one hand he's telling people they

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should be paying down their credit card bills. The message has been

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we've got too much debt. At the same time the economists are

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standing up say, hang on if everybody pays, we have the economy.

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My impression is it is a low-key affair so far. They are in

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reasonable spirits but seem apprehensive. What does he need to

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do to them today? He needs to fire them up. He is a competent Speaker,

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unlike Ed Miliband and Nick Clegg, he has several gears when he goes

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through a speech. He can change the pace of it. He will fire them up

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with this attempt to bridge the reality of the economic downturn

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with the optimism of the future. It is that bridge between the realism

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and optimism, he's got to convey to punters at home. He famously said

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when Leader of the Opposition, "Let sunshine win the day." As I read

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through my newspapers and blogs and the Tweets this morning, it was

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just bad news after bad news. The recession was deeper than we

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thought, growth turned out to be lower than we thought in the second

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quarter of this year. Italy has defaulted, not defaulted, Italy has

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had a downgrade a second time. The Greeks are going on strike. Even

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Tescos of all things has made a loss for the first, or a drop in

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:06:48.:06:51.

sales for the first time in 20 years. That's a difficulty.

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wonders how much optimism he can prevent when around him it looks

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pessimistic. The Treasury hold the view the more serious it gets the

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more it focuses the minds of the French and Germans on resolving the

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Greek crisis. That requires nerves of steels, which circumstances

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outside make difficult. Circumstances bond his control. The

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markets take a further tumble because the eurozone leaders are

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yet to show something called leadership. The Belgium bank goes

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belly-up. Everything becomes worse news. There's nothing a British

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Prime Minister, or very little a British Prime Minister can do.

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is the difficulty. That is his opportunity today. He can say, look

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I'm not veering off a debt reduction plan, we are a safe port

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in the storm. He's going to say, you can't feel it yet, you can't

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even really see it yet, but our policy is working and will be

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working. In other words, all this rhetoric about the ship coming out

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of the storm will be heavily promoted today. I am not sure

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whether the public will see eye-to- eye with that. Should he, would he,

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will he mention Ed Miliband? Interesting. I think he may be

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tempted to ignore him. If I was him I was would nor him. He may have a

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few cat jokes. Not more cat jokes. I understand there may be a cat

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reference in one of the songs after he walks off the stage. Can we

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agree he will not say this year Britain is out of the danger zone?

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Today it is difficult to make such a statement. Thank you.

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Getting our coverage of the David Cameron conference speech of 2011,

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to the party faithful, it is coming up now, in froblly just over 0

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minutes. He -- probably just over 20 minutes. He is probably running

:08:43.:08:48.

late. Party leaders generally do. Some things are left behind in

:08:48.:08:52.

Westminster. There are some treasured possessions we bring with

:08:52.:08:56.

us. Andrew packs his cuddly toys, his iPad and I have my special

:08:56.:09:02.

conference pen. But you, dear viewers, how would you survive a

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Wednesday Daily Politics without Guess the Year. Can you remember

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# Don't tell me it's not worth trying for

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I know what it's like for a family when a business collapses, what

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it's like when you're unemployed and you have to search for the next

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job. I haven't forgotten and I never will.

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# Everything I do, # I do it for you #

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The UN deadline for an Iraqi withdrawal from Kuwait has passed

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Yes, now, to be in with a chance of winning a Daily Politics mug, send

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your answer to our special quiz e- mail address, that's

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[email protected] You can see the full term and conditions for Guess

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the Year on our website. That's bbc.co.uk/dailypolitics. And

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we will pick the winner on tomorrow's Daily Politics programme.

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With me I've two Conservative MPs who I know are busy as we speak.

:10:55.:10:59.

Bernard Jenkins and Sajid Javid. Starting you, have the big issues

:10:59.:11:02.

been addressed? It has been -- there is something unreal about

:11:02.:11:08.

this conference. There is a serious mood. Nobody has wanted to

:11:08.:11:11.

undermine David Cameron. There is a serious atmosphere because we know

:11:11.:11:16.

there is a big crisis outside. The drinks flow at the conference and

:11:16.:11:21.

the band plays, but there is a sense that the depth is beginning

:11:21.:11:25.

to slope a bit because we are facing challenges in the eurozone

:11:25.:11:28.

crisis. Do you think they have been properly addressed by the

:11:28.:11:31.

leadership? Well, there is a sense that the leadership are trying to

:11:31.:11:35.

push the consequences of this into the future. We've an economic

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problem. We've a competitiveness problem now. If the eurozone are

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going to make very big changes to the way the European Union operates,

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that is the moment we need to address the regulation that is

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piling on from Europe and I don't think we can push this forward.

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This is happening now. I'm afraid this crisis is not going to fit

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into a coalition programme that waits until 2015, which seems to be

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what William Hague was saying this morning. Do you agree with how that

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is characterised that now is the time to act. I am not sure what

:12:08.:12:14.

Bernard suggests the Government does. Should there be something to

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reement -- pre-empt Greece from defaulting? Bernard is right in the

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sense it has been a very mature conference. It has been focused on

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by George Osborne and by the Prime Minister in his speech, probably in

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a moment, there is no alternative to plan A. We've heard that. That

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has been their strategy. What about what Bernard Jenkins is saying?

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Should something be down now in terms of action? I am not sure

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there is much more we can do. The euro is not a problem of our doing.

:12:49.:12:53.

We are glad the Government has changed 18 months ago or we could

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have been in a similar situation to Italy or Greece ourselves. What can

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be done? What I'm saying is that the eurozone crisis is leading to a

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fundamental change in the nature of the European Union. There is talk

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of a treaty of the 17, and they are going to do a treaty of the Euro-

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states, on their own, to do fiscal union, not requiring the signature

:13:17.:13:20.

of any other member-state. It could take years? The problem is these

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changes will be made very quickly f they are made. They profoundly

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change the European Union. And ministers themselves are saying

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this is going to change the way the European Union operates. Is that a

:13:31.:13:34.

time for a referendum? No. I'm saying what the Government will

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need to address is how to protect British national interests in this

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eurozone, in the centre of the Euro-. Have you any -- in the senl

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centre of the eurozone. Have you any suggestions for them? If the

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Liberal Democrats paralyse them on this, we say, go ahead, make our

:13:53.:13:57.

day, if you want to bring the Government down on this, this is

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vital for our competitiveness to be able to get control. When we talk

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about the Liberal Democrats, we also have to recognise that they

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did not win a majority. We needed to form a coalition. There was no

:14:07.:14:11.

other way around that. The Liberal Democrats have done the country a

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huge service in coming to that coalition and addressing the bigish

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issue of the day which was the debt and the deficit. Bernard would

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agree with me, had we not got that under control our situation would

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be like some of our European partners. They could be the block,

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if you like on any negotiation, opportunity that comes up? I don't

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think a block is a right word for it. We are in a koolgsz. The

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situation is what it -- coalition. The situation is what it is. If an

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opportunity arises for Britain to enter into a negotiation, of course

:14:46.:14:49.

we should take advantage of that. We should keep our pencil sharpened.

:14:49.:14:54.

Right here and now, what we need to assure the markets is we have a

:14:54.:14:59.

strategy that works. The moment George Osborne sat down after his

:14:59.:15:05.

speech, our rating was reaffirmed. We saw what happened in Italy. They

:15:05.:15:10.

got downgraded by S and P and Moody's today. What about the Human

:15:10.:15:13.

Rights Act? Nick Clegg made it clear, it is here to stay. What do

:15:13.:15:17.

you think of that? On that issue Nick Clegg is wrong. We made it

:15:17.:15:21.

clear in our manifesto that we would like to see a British Bill of

:15:21.:15:25.

Rights which balances rights and responsibilities. That is very

:15:25.:15:28.

important. What should the Government do to counter that from

:15:28.:15:33.

Nick Clegg, if that is the right thing to do in your view?

:15:33.:15:36.

The British Bill of Rights, you don't get the feeling it will

:15:36.:15:46.
:15:46.:15:48.

There is a sense that the absolutely overbearing weight of EU

:15:48.:15:52.

law and human rights law is paralysing the government. We have

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put this in our select committee report, no one has challenged it.

:15:55.:15:59.

There is a real problem about making government work in this

:15:59.:16:02.

over-regulated environment, and getting the economy competitive.

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Are we going to be told we have to wait until 2015 before we can do

:16:06.:16:11.

anything about this? I thank that is a problem. I think the Liberal

:16:11.:16:15.

Democrats should be challenged on this -- I think that is a problem.

:16:15.:16:18.

If they want to bring down the coalition... They haven't really

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said that, they are very tied him. Does your concern reflect the Tory

:16:25.:16:30.

backbenchers? -- tied in. coalition agreement was written 18

:16:30.:16:34.

months ago, events have overtaken the coalition agreement. We cannot

:16:34.:16:37.

go on living in the world as it was then, we have to tackle the

:16:37.:16:40.

challenges now, or the whole government will become more

:16:40.:16:44.

unpopular. How are the backbenchers feeling? Most backbenchers would

:16:44.:16:50.

agree with what George Osborne... That is fine but are they happy? Do

:16:50.:16:53.

they feel they are getting the government they want? By and large,

:16:53.:16:58.

people accept that because of the coalition, there are naturally

:16:58.:17:02.

going to be constraints. They are not happy, really? We accept that.

:17:02.:17:06.

I would have loved to have seen an out right Conservative victory, we

:17:06.:17:10.

didn't get it so we have frustrations like the Human Rights

:17:10.:17:13.

Act. If we can find ways to deal with that within the constraints of

:17:13.:17:18.

the coalition, such as what Theresa May said yesterday, that is the way

:17:18.:17:23.

to go for it. This is a Midge Ure conversation, there is not going to

:17:23.:17:28.

be some massive rebellion instantly -- this is a mature conversation.

:17:28.:17:32.

We have seen it going on in the conference will between Ken Clarke

:17:32.:17:36.

and Theresa May. I think we have got to have these conversations

:17:36.:17:39.

because we have to address the national interest. The coalition

:17:39.:17:42.

has to address the national interest. Somebody said to me,

:17:42.:17:48.

hasn't it been a dull and boring confidence -- conference? I said,

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if you mean there hasn't been infighting and briefings against

:17:50.:17:55.

each other, then it has been. could have been handing out this

:17:55.:18:01.

leaflet. Are you worried? They would say that, wouldn't they.

:18:01.:18:06.

suppose so. You're not worried they are going off to UKIP. At salute

:18:06.:18:14.

will not. Pick a badge. I love deficit reduction -- absolutely not.

:18:14.:18:24.
:18:24.:18:25.

He had first pick. I love the 50p tax rate? As a former banker, I

:18:25.:18:31.

love banking reform. Wear them with pride. Thank you very much.

:18:31.:18:35.

Thanks, de Gaulle is filling up, there are still plenty of seats in

:18:35.:18:43.

what the Americans call the bleachers -- the hall is filling up.

:18:43.:18:48.

If not a huge crowd. The bottom of the hall is full, but lots of spare

:18:48.:18:53.

seats at the back. It is a big centre in Manchester kids, but

:18:53.:18:58.

Labour filled it be conference in Liverpool last week. We will see

:18:58.:19:02.

whether the Tories do the same. If you are sitting in your hotel room

:19:02.:19:06.

in Manchester watching this, part of the delegation, you can come,

:19:06.:19:10.

plenty of time. We have been told that the Prime Minister will now

:19:10.:19:15.

not be on his feet before 4:40pm. But we will still be here the

:19:15.:19:22.

moment he does -- to 40 pm. Graham Brady is the chairman of the 1922

:19:22.:19:28.

Committee of backbench Conservative MPs, a kind of shop steward for the

:19:28.:19:33.

backbenchers. I am a trade union leader. You look and sound like one,

:19:33.:19:37.

I am not surprised. Why haven't your members been allowed to spend

:19:37.:19:42.

more time discussing Europe this week? When the crisis over the euro

:19:42.:19:49.

has been heading for climax? heard some of the members of the

:19:49.:19:52.

1922 committee discussing just that. Why hasn't the conference been

:19:52.:19:59.

doing it? I think conference programmes are over managed. Not a

:19:59.:20:03.

little over manage, they are totally managed. There is no scope

:20:03.:20:08.

for any measure of rebellion at this conference. I don't think it

:20:08.:20:11.

is a matter of rebellion but I would like to see more debate in

:20:11.:20:18.

party conferences, I would like to see us get back to balloted motions.

:20:18.:20:22.

To be dangerous, isn't it? Sometimes you have to live

:20:22.:20:25.

dangerously. You would like to go back to the days when we had

:20:25.:20:29.

debates, motions, speakers for and against, and at the end, people

:20:29.:20:35.

could vote. And although the conference, unlike Labour, doesn't

:20:35.:20:40.

bind the Tory leadership, it would give you a good indication of where

:20:40.:20:47.

the heart of the party was. I think debate is a good thing. Especially

:20:47.:20:51.

so in these very difficult times we are facing. We are in

:20:51.:20:55.

unprecedentedly bad economic circumstances. I think it is a good

:20:55.:20:59.

thing that we hear different views about how we work our way out of it.

:20:59.:21:04.

Why did you get rid of the debates? I didn't. Not you personally, the

:21:04.:21:09.

party. Both the Labour Party and Conservative Party have been moving

:21:09.:21:13.

to more managed conferences, and it is clearly because the party

:21:13.:21:16.

hierarchies are concerned about what you and your colleagues do

:21:16.:21:22.

when there is some genuine open debate. Which means it is hard for

:21:22.:21:26.

you to complain when we don't cover the events going on in the all

:21:26.:21:29.

enough, because frankly, what is going on in the ball these days is

:21:29.:21:34.

either irrelevant, boring or both. Some of it is very exciting and

:21:34.:21:39.

very interesting. As a general rule and principle, more debate in

:21:39.:21:44.

politics, treating the public as intelligent people who can watch

:21:44.:21:48.

disagreements and discussions between politicians without

:21:48.:21:51.

automatically thinking there is some great split in a party. I

:21:51.:21:56.

think we could do more of that. What is the mood among Conservative

:21:56.:21:59.

backbenchers as regards their attitude towards the government,

:21:59.:22:04.

and the influence that the Lib Dems have on this government? I think

:22:04.:22:08.

there is a degree of acceptance of something which is inevitable.

:22:08.:22:11.

There was a decision which was taken, a series of decisions taken

:22:11.:22:16.

by the electorate. We ended up with a certain parliamentary arithmetic,

:22:16.:22:19.

it wasn't possible to form a majority government on our own. We

:22:19.:22:24.

would prefer to have done so. We are nonetheless, managing to

:22:24.:22:27.

function as a government, with a degree of cohesion, especially

:22:27.:22:32.

about the key issue of reducing the deficit, and working towards the

:22:32.:22:36.

point where we will start to play down the national debt. Is there a

:22:36.:22:39.

mood on the Conservative backbenches to be more robust on

:22:39.:22:44.

Europe? I think the European picture is moving so rapidly and

:22:44.:22:49.

changing so rapidly, it is very difficult to discern where people

:22:49.:22:54.

are. This is one of the features of this conference, that people inside

:22:54.:22:58.

this conference have been looking out at events, looking at the

:22:58.:23:02.

markets, looking at what is going on in Greece, perhaps just as much

:23:02.:23:06.

as the outside has been wanting to look in at what we are doing here.

:23:06.:23:13.

Is there a mood for the government to be more robust on tax cuts?

:23:13.:23:17.

think there is a question of reality. We are in this extremely

:23:17.:23:20.

difficult position, we have to get to the position where we are

:23:20.:23:24.

spending less... I know what the position is, we have heard it

:23:24.:23:29.

endlessly. What I am asking for is the mood on the backbenches, what

:23:29.:23:33.

is their attitude? I think there is a strong view in the Conservative

:23:33.:23:38.

Party, and in the government, that if you can achieve a lower tax,

:23:38.:23:43.

less regulated economy, it is going to be more efficient economy, which

:23:43.:23:47.

will generate more wealth and jobs for the British people. That is

:23:47.:23:51.

something we want to get to. Getting from where we are now to

:23:51.:23:55.

that position is a very serious challenge. Do you want the

:23:55.:23:58.

government to move more quickly on the backbenches will continue at

:23:58.:24:02.

the current pace? I think what the government is starting to talk more

:24:02.:24:08.

about, which is extremely welcome, is tackling the regulatory burden.

:24:08.:24:13.

It is adding to regulations. We are hearing this week from David

:24:13.:24:17.

Cameron and George Osborne, a real commitment to tackling the

:24:17.:24:20.

regulatory burden, and that is something which is going to be

:24:20.:24:24.

vital in the coming years. That is the other thing we can do. We have

:24:24.:24:28.

had massive monetary stimulus and fiscal stimulus over the years, and

:24:29.:24:32.

we are where we are. We can start to really drive down the cost on

:24:32.:24:36.

business. What is the point of a trade union leader that has

:24:36.:24:40.

absolutely no disagreement with the bosses? They used to say the secret

:24:41.:24:46.

weapon of the Conservative Party was loyal to. The secret weapon of

:24:46.:24:48.

the 1922 Committee is that generally, the conversations I have

:24:48.:24:52.

with the Prime Minister are better conducted in private. What do you

:24:52.:24:55.

tell the Prime Minister in private that you're not telling us on air?

:24:55.:24:59.

That would defeat the object, wouldn't it? A very good attempt.

:24:59.:25:03.

You're not going to tell us? course I am not going to Italy

:25:03.:25:08.

about the private conversations with David Cameron. -- not going to

:25:08.:25:16.

It causes considerable uncertainty, for a number of different parts of

:25:16.:25:21.

the country. We are still out the review from Wales and Scotland. It

:25:21.:25:26.

is a pretty radical set of changes. In some places, it creates very

:25:26.:25:34.

profound differences. We can see David Cameron the coming out of the

:25:34.:25:41.

hotel, here in Manchester. It is the only hotel which is behind what

:25:41.:25:44.

we call the ring of steel in this party conferences, the security

:25:44.:25:49.

perimeter, which means once you get through that, you can walk between

:25:49.:25:53.

the hotel and conference centre. We are in this massive conference

:25:53.:25:56.

centre, the Prime Minister and his wife are heading towards it. It

:25:56.:26:02.

used to be an old Victorian railway station. The platforms and the

:26:02.:26:06.

rails have long gone and it is a very state-of- the-art conference

:26:06.:26:13.

centre. There is something of a piazza, the Prime Minister makes

:26:13.:26:18.

his way here and is about to head into the Manchester convention

:26:18.:26:22.

centre. What do you want to hear from the Prime Minister this

:26:22.:26:27.

afternoon? What we will hear from the Prime

:26:27.:26:32.

Minister... I really want to know what you want to hear from him.

:26:32.:26:37.

What I want to hear will be what we pretty much will here, a realistic

:26:37.:26:41.

assessment of the massive challenges that face the country,

:26:41.:26:46.

face the government, faced the global economy, and that is very

:26:46.:26:50.

important, I think people are starting to take that on board.

:26:50.:26:54.

Then I want to see a really sharp focus on what we can do. There are

:26:54.:26:59.

things we can't easily do, to improve the economic situation. The

:26:59.:27:03.

things we can do, not easily, not simply, is to start driving down

:27:03.:27:10.

the cost burden on business, and I think that is vital. Do you welcome

:27:10.:27:16.

chance lost on's remarks, has that maybe this -- Chancellor Osborne's

:27:16.:27:21.

remarks that the increasing has maybe gone too far. I think George

:27:21.:27:24.

Osborne was right to make sure we would not fix a carbon price higher

:27:24.:27:30.

than our competitors. That is the kind of thinking we need to move to.

:27:30.:27:35.

The principal preoccupation of the government is growth. We need to

:27:35.:27:42.

make life better and easier for British businesses. What we are

:27:42.:27:46.

hearing is that the Conservative press office, which has uncovered

:27:46.:27:50.

itself in glory in the past 24 hours, is saying the Prime Minister

:27:50.:27:55.

might not be speaking until about six minutes to three, which would

:27:55.:28:00.

be very late indeed. I have no idea why it has to be that late. It has

:28:00.:28:03.

been in the calendar for almost a year. Although there has been last-

:28:03.:28:07.

minute drafting and refinancing of some of his remarks about credit

:28:07.:28:13.

cards, it does not explain why he is half-an-hour late. Maybe he will

:28:13.:28:19.

be more on time than before, than we are briefed. You might have to

:28:19.:28:22.

fight George Osborne for a seat with his Boundary Commission change,

:28:22.:28:28.

is that right? No, it is not right. -- with this Boundary Commission

:28:28.:28:34.

changed. You must never believe what you read in the press. After

:28:34.:28:38.

the wrong steel on credit cards, you are right for they don't cross

:28:38.:28:42.

the boundary between Greater Manchester... Is your seat safe?

:28:42.:28:47.

would never call a seat safe. mean from the boundary changes.

:28:47.:28:55.

There will be a sensible seat under the proposals. What is it like

:28:55.:28:59.

running the 1922 Committee? Is it like herding cats? I thought you

:29:00.:29:03.

weren't going to mention cats. It is fair to say that Conservative

:29:03.:29:07.

Members of Parliament are independent people and they do not

:29:07.:29:11.

always have an entirely uniform view. Thank you for joining us. We

:29:11.:29:16.

are going to move on. It has been quite a 12 months for David Cameron.

:29:16.:29:20.

A global economic crisis, riots on the streets of English cities, an

:29:20.:29:24.

uprising in the Arab world which led to the first military adventure

:29:24.:29:30.

of his premiership. Here is our rookie reporter, Michael Portillo,

:29:30.:29:40.
:29:40.:29:50.

David Cameron twos to the Conservative Party Conference with

:29:50.:29:54.

feathers in his -- goes to the Conservative Party Conference with

:29:54.:29:59.

feathers in his hat. The local election results were good and he's

:29:59.:30:04.

been vindicated on Libya. All that counts for very little. There's

:30:04.:30:10.

only one thing that really matters - the economy, stupid! Today is the

:30:10.:30:19.

day when Britain steps back from the brink, when we confront the

:30:19.:30:24.

bills from a decade of debt. On day one of the coalition, the

:30:24.:30:27.

Government's commitment to bring down the deficit reassured the

:30:28.:30:34.

markets. Unlike America, Britain still has a triple-A credit rating.

:30:34.:30:37.

Unlike Portugal, Ireland, Greece and Spain, our Government can still

:30:37.:30:44.

borrow cheap. The economy has stalled. The

:30:44.:30:48.

Chancellor of the Exchequer cannot simply blame the weather. We're not

:30:48.:30:54.

going to be blown off course. The weather had a huge effect.

:30:54.:31:02.

George Osborne adopted a plan B the markets would wobble. Living

:31:02.:31:06.

standards are sliding. Without economic growth, the deficit won't

:31:06.:31:11.

shrink. It's difficult to see what he'll have to offer the voters at

:31:11.:31:17.

the next election for all their pain.

:31:17.:31:25.

This summer saw the worst bout of rioting for a generation. Alastair

:31:25.:31:30.

Campbell recognised he needed to -- David Cameron recognised he needed

:31:30.:31:34.

to sound tough. There are pockets of our society which are not just

:31:34.:31:41.

broken, but frankly sick. If he sounded tough at home he was also

:31:41.:31:47.

tough with Libya. Who could have imagined just 1 months ago that a

:31:47.:31:51.

British Prime Minister would -- 12 months ago that a British Prime

:31:51.:31:56.

Minister would permit forces so soon after Iraq and Afghanistan.

:31:56.:32:00.

There is a clear and unequivocal basis for the deployment of

:32:00.:32:06.

military forces and assets. David Cameron's judgment does

:32:06.:32:11.

sometimes fail him. He was wrong- footed over the hacking scandal and

:32:11.:32:16.

his decision to hire as his communications director the former

:32:16.:32:22.

News of the World editor, Andy Coulson. With 20/20 hind site and

:32:22.:32:26.

all that has followed I would not have offered him the job and I

:32:26.:32:30.

suspect he would not have taken it. You don't make decisions in

:32:30.:32:33.

hindsight, you make them in the present. You live and you learn,

:32:34.:32:43.

and believe you me, I have learnt. A Prime Minister has had to wheel

:32:43.:32:47.

and deal to meet the competing demands of Liberal Democrats and

:32:47.:32:51.

Tories within the coalition. The Government sometimes appears to be

:32:51.:32:55.

spinning around rather than moving forward. Its response to the Arab

:32:56.:33:00.

Spring has been confused. The defence cuts are a mess. In an

:33:01.:33:05.

ominous echo of the past, Euro- sceptic Tory backbenchers threaten

:33:05.:33:08.

revolt and put strain on the coalition. The Liberal Democrats

:33:08.:33:12.

have been responsible for some of the most dramatic U-turns.

:33:12.:33:17.

propose to take the opportunity of a natural break in the passage of

:33:17.:33:23.

the bill to pause, to listen and to engage. The last 12 months have

:33:23.:33:27.

been really testing. David Cameron always looks effortlessly Prime

:33:27.:33:31.

Ministerial. If Ed Miliband continues to lead

:33:31.:33:38.

Labour, and continues to be disliked and thought incredible,

:33:38.:33:44.

then David Cameron's fitness for office may prove decisive.

:33:44.:33:48.

Cameron's recipe to gain power was to move the Conservatives to the

:33:48.:33:52.

soft-centre of British politics, hugging the NHS and embracing

:33:52.:33:56.

climate change. In office, he's moved away from the middle-ground.

:33:56.:34:00.

That doesn't mean he'll lose the next general election. Margaret

:34:01.:34:05.

Thatcher was highly unpopular. Many of her decisions were hated, but

:34:05.:34:10.

she never lost a general election. In that, as in so many other ways,

:34:10.:34:18.

she may be David Cameron's model. Michael Portillo there, looking at

:34:18.:34:22.

David Cameron's year. It is a little empty out here in the hall

:34:22.:34:26.

because everybody has gone inside, except these three delegates we

:34:26.:34:36.
:34:36.:34:37.

have kept behind until the speech starts. With us Kirsty Roberts, and

:34:37.:34:46.

Roche and Mr Decisionson. We've had people -- and Mr DixoN. People have

:34:46.:34:52.

said it is stage-managed. I am not sure if there is the party faithful

:34:52.:34:57.

and the same response as in the past. We are now in Government and

:34:57.:35:00.

it is a different situation. Everybody is looking forward the

:35:00.:35:03.

future. I feel there are far more younger women being attracted

:35:03.:35:08.

towards the party. Despite the fact that the leadership admits they

:35:08.:35:10.

have had a problem with women voters and the poll would indicate

:35:10.:35:14.

that as well. We are doing our best to address that. It is very

:35:14.:35:17.

important to have a cross- representation in any party in

:35:17.:35:21.

order to be able to represent the community as a whole. Obviously,

:35:21.:35:27.

trying tory tract younger women into politics is -- trying to

:35:27.:35:32.

attract younger women into politics is the thing. I am a councillor and

:35:32.:35:35.

have a young family. It is important that people like us, with

:35:35.:35:39.

our own reflections and we bring those to politics, which is, I

:35:39.:35:44.

think, what some of my colleagues are experiencing. On that basis,

:35:44.:35:50.

Kirsty, you are an IT contractor. You are out there in the world of

:35:50.:35:55.

business, and the message that they are sending out, it is about the

:35:55.:36:00.

future. Is the future bleak, or is it sunny uplands? I think what

:36:00.:36:06.

we're going to see, Jo, is a message of, we need some hope.

:36:06.:36:11.

Everyone knows we are in a tough situation at the moment. I don't

:36:11.:36:17.

think anyone is dispuelting that. - - disputing that. The messages we

:36:17.:36:21.

are getting through from the Government are certainly they are

:36:21.:36:31.
:36:31.:36:35.

taking the hard choices. They... If we had not had an emergency Budget,

:36:35.:36:40.

for instance coming in last year, we were in serious danger of going

:36:40.:36:45.

the same way as Greece, Ireland and some of these other economies. So,

:36:45.:36:50.

it's not comfortable for anyone. Frankly, the Government are looking

:36:50.:36:56.

after us. They are looking after our future now. OK, David you left

:36:56.:37:00.

the party in 1997, when Tony Blair came into Government. You didn't go

:37:00.:37:04.

to Labour, but you left the Conservative Party. You came back

:37:04.:37:10.

when David Cameron come in 2005. Has he done a good job? Has he

:37:10.:37:14.

stuck to the sort of manifesto you wanted? I think he's done a

:37:14.:37:21.

fantastic job. I seriously mean that. I've been in the party in and

:37:21.:37:26.

out for 40 years. I think the party is in better heart than I have

:37:26.:37:30.

known it. Why? It's the energy. it younger? It is younger. There

:37:30.:37:35.

are fewer here. You can see empty seats in that auditorium. That is

:37:35.:37:39.

not very encouraging, is it? people who are here are younger and

:37:39.:37:44.

more energy yet tick than ever. I am very impressed with the people I

:37:44.:37:48.

have met here. On that basis, if they are younger, are they

:37:48.:37:52.

representing, as you said, across the society? Is everybody being

:37:52.:37:55.

made to feel welcome in the Conservative Party? We heard

:37:55.:38:00.

earlier from one of the sketchwriters that some of the more

:38:00.:38:04.

traditional Tories are not here in the numbers they used to be. Has

:38:04.:38:09.

the party changed? All parties will change just as society changes.

:38:09.:38:11.

Political parties have to reflect society. Of course there are going

:38:11.:38:17.

to be, as you have rightly said, younger delegates here, possibly

:38:17.:38:22.

for the first time, people who have come to politics through a

:38:22.:38:26.

difficult previous Government and want to sea change. They are here

:38:26.:38:29.

in order to participate rather than perhaps purely vote. They want to

:38:29.:38:33.

engage with the party. They want to take part. It's through that that

:38:33.:38:37.

you will sea change and the whole of society will be represented.

:38:37.:38:42.

What about people struggling with their finances? I am sure you all

:38:42.:38:47.

have experience, yeert yourselves or other people. How dif -- either

:38:47.:38:52.

yourselves or other people? How difficult is it out there? From a

:38:52.:38:57.

personal perspective and talking to my constituents the biggest concern

:38:57.:39:01.

people have is planning for the future. Financial planning?

:39:01.:39:07.

Absolutely. Are they spending? would like to hear something in

:39:07.:39:13.

David Cameron's speech today to tell us what he's going to do.

:39:13.:39:18.

People are very worried about pensions and the general market.

:39:18.:39:22.

But I, as I said previously, I think there's a recognition,

:39:22.:39:26.

certainly from people I speak to that decisions have had to be taken

:39:26.:39:30.

and they were tough decisions. I think the Government, this

:39:30.:39:34.

Government, has the strength and the courage to take those decisions.

:39:34.:39:38.

With the Liberal Democrats, of course. Are you pleased with the

:39:38.:39:44.

coalition? Yes, very pleased. Because they are having a good

:39:44.:39:48.

influence? That is right. My concern right now is housing. I am

:39:48.:39:53.

a landlord. I see house from the inside. I think the Government,

:39:53.:39:57.

aided by the Liberal Democrats, will do something to help first-

:39:57.:40:01.

time buyers, they have to. The market is frozen at the moment.

:40:01.:40:05.

That's what I'm looking for. What about building houses? They have

:40:05.:40:12.

made a play about the planning laws. Do you agree that it is being

:40:12.:40:15.

geared more towards economic development than it is towards

:40:15.:40:19.

saving the countryside? That has been said. The fact is with a

:40:19.:40:22.

frozen housing market, it doesn't matter how many they propose to

:40:22.:40:26.

build. They won't do it because there are no sales at the moment.

:40:26.:40:32.

And that would be key for you? Absolutely. You are a doctor, what

:40:32.:40:35.

did you think about the NHS reforms? Do you think they are in

:40:35.:40:38.

better shape now because of what the Liberal Democrats say they

:40:38.:40:42.

actually did in terms of a pause, do you support them or think they

:40:43.:40:47.

should have gone quicker, faster and, you know, in a way that the

:40:47.:40:52.

Tories initially wanted? I am speaking as an individual rather

:40:52.:40:57.

than as a doctor. Clinical medicine and politics are two separate

:40:57.:41:01.

things. Because there has been a pause, I think the NHS needs to

:41:01.:41:07.

progress. If we don't amove forward.... Do you support GP

:41:07.:41:10.

commissioning? There'll be lots of things which could benefit from

:41:10.:41:15.

that. There'll be a step by step process. Possibly there will be

:41:15.:41:19.

teething troubles in certain areas. Certainly I think the Government

:41:19.:41:23.

have worked with doctors in order to try and get the very best

:41:24.:41:28.

outcomes. So many did not support it. What about some of the

:41:28.:41:32.

patients? Do you think they feel reassured by these savings which

:41:32.:41:37.

have to be made to the budget? Savings will be essential. They are

:41:37.:41:41.

not arbitrary. Unfortunately we have a very, very difficult

:41:41.:41:49.

financial situation, and the NHS is one of the most expensive calls

:41:49.:41:53.

upon finances. Basically I think people are more aware and patients

:41:53.:41:57.

are more aware that money has to come from somewhere. I think,

:41:57.:42:01.

although some people are afraid that commissioning might, this

:42:01.:42:05.

might be a completely new area of commissioning, others feel they may

:42:05.:42:07.

get a better service because they have a personal relationship with

:42:08.:42:12.

their GPs and this could be a very positive outcome.

:42:12.:42:17.

Thank you very much. We will see you after the speech, if there is

:42:17.:42:22.

time for reaction, depending on how long it goes on for. Back to you,

:42:22.:42:26.

Andrew. Thanks, Jo. We are waiting to know

:42:26.:42:33.

when the speech will start. We're told it might start around 2.50pm,

:42:33.:42:36.

which is later than the original start time we were given. I would

:42:36.:42:40.

like to make a point and say they are probably drafting it after all

:42:41.:42:46.

the changes. I don't think they are. I have a copy of the speech here. I

:42:46.:42:50.

could get things underway by reading it out myself, but that is

:42:50.:42:56.

a way to get your P45. Nick Robinson is with us. He and I will

:42:56.:43:02.

talk for Britain.... In alternative words. This week.... You have

:43:02.:43:05.

broken the embargo. They are watching videos in there. They are

:43:05.:43:08.

getting the audience warmed up in time for the speech. Slightly

:43:08.:43:12.

surprised to see a lot of empty seats at the back of this hall?

:43:12.:43:15.

am surprised. Normally there are people who come especially for this

:43:15.:43:18.

day, even if they have not been here for the whole of the

:43:18.:43:22.

conference. Normally they ensure it is full. It is not. It is a sign

:43:22.:43:25.

again of a conference, not just this, all of them actually, it

:43:25.:43:31.

feels like the idea of conferences is almost dying. They are so

:43:31.:43:34.

carefully stage-managed. They so work to ensure that controversy

:43:34.:43:39.

happens in the Fringe and in the bars and not here in front of the

:43:39.:43:43.

television cameras and microphones. It is so expensive for many people

:43:43.:43:49.

to come to city centres, as besides a seaside resort there are fewer

:43:49.:43:56.

and fewer activists and more and more people, whose profession,

:43:56.:44:02.

whether lobbyists or business people come here. The chairman of

:44:02.:44:12.
:44:12.:44:14.

the 1922 Committee. He wanted debate and then a vote. That is why

:44:14.:44:19.

Graham Brady is chairman of the backbench committee and not in Her

:44:19.:44:22.

Majesty's Government. It is that view that will convince David

:44:22.:44:27.

Cameron he should not become a minister. No party leadership wants

:44:27.:44:31.

to wash its dirty linen in public. Of course there's a consequence to

:44:31.:44:36.

that. If it takes out the activists' involvement, the danger

:44:36.:44:39.

of course is the leadership don't hear the warnings of their own

:44:40.:44:46.

grass roots who are not merely meant to be sent out to knock on

:44:46.:44:50.

doors. They are supposed to be in touch with what the country is

:44:51.:44:53.

thinking. What will the message be from the speech today? The message

:44:53.:44:59.

he wants to have is not this mess they have got into, over whether

:44:59.:45:02.

people should pay off their credit cards or not. The message he wants

:45:02.:45:07.

is, yes, it is bleak out there. I think we'll get a starker warning

:45:07.:45:11.

about how bleak it the economically. We have heard him talking about

:45:12.:45:16.

staring down the barrel of a gun. We heard about him talking about

:45:16.:45:20.

the danger posed be I the world economy. He is likely to make a

:45:20.:45:24.

direction comparison with the banking crisis in 2008, in other

:45:24.:45:28.

words a problem not just for Britain but of a global recession.

:45:28.:45:32.

Labour will leap on that if that is what he does. They have talked

:45:32.:45:35.

about creating a "safe haven" through their policies. Now they

:45:35.:45:39.

are talking about the problem of that world recession, in which

:45:39.:45:43.

Britain might be sucked in. But the other half of his message is meant

:45:43.:45:47.

to be one, not so much of optimism, but a belief, if you like, we can,

:45:47.:45:56.

the country can, I can get you The grim economic backdrop, which

:45:56.:46:02.

has got grimmer, means that there are some things that in more normal

:46:02.:46:06.

times would have been in this speech, that are not in this speech

:46:06.:46:12.

now. All won't be prominent. Just a few weeks ago, I think if we'd had

:46:12.:46:15.

sat here and said, what do you think David Cameron would do, you

:46:15.:46:20.

would say, it has got to be about the riots. It is surely going to be

:46:20.:46:24.

about what happened on the streets of Manchester, of Britain, I should

:46:24.:46:30.

so the streets of England before the Scots correct me. It saves me a

:46:30.:46:35.

lot of e-mails! And yet, I am told there will be not much on it. There

:46:35.:46:40.

will be words about the riots, but it hasn't dominated any of the

:46:40.:46:43.

conferences in the way that all political leaders thought it would.

:46:43.:46:48.

You might have thought the conflict in Libya would be the dominant

:46:48.:46:54.

theme... Which he would regard as a success. A great triumph. It will

:46:54.:46:59.

be mentioned, but it won't dominate. The growing economic storm has

:46:59.:47:04.

taken over from everything. The sense that politicians have, that

:47:04.:47:07.

the public think they are not in touch with their concerns, that the

:47:07.:47:11.

economy is not being run in a way which works for them... Which means,

:47:11.:47:15.

interestingly, we have heard already this week, things that

:47:15.:47:23.

sound very similar to Ed Miliband boss -- et Ed Miliband's and

:47:23.:47:30.

previous stories. Their -- Tories. The hearing the concern that people

:47:30.:47:34.

don't get it, that the rules work in a way that you get something for

:47:34.:47:37.

nothing rather than something for nothing -- rather than something

:47:37.:47:42.

for something. It is going to be uncharted territory for British

:47:43.:47:48.

politics. This coalition has an agreement, which was done on the

:47:48.:47:51.

basis that the worst of the recession and the financial

:47:51.:47:55.

meltdown was over, and this is our rebuilding plan, to take us through

:47:55.:48:00.

to the election. That agreement could well turn out, in large areas,

:48:00.:48:05.

to be irrelevant, if we are just heading into another financial

:48:05.:48:10.

meltdown. It doesn't give you the prescription. In a sense, let's

:48:10.:48:16.

think of the parallel with its 2008. Alistair Darling could not say,

:48:16.:48:21.

what does it say on a manifesto about this? They literally had to

:48:21.:48:25.

make it up as they went along. You have to gather your experts in a

:48:25.:48:30.

room and say, what do we do now? The advantage, if there was one, of

:48:30.:48:35.

the crisis in 2008, many of the officials around the Prime Minister

:48:35.:48:39.

and Chancellor were the officials who were around Gordon Brown and

:48:39.:48:43.

Alistair Darling, so they have some knowledge about what to do about a

:48:43.:48:49.

banking crisis. Last night, the Ten O'Clock News lead on this crisis in

:48:49.:48:54.

a French and Belgian bank, a vast problem for that bank. But the

:48:54.:48:58.

Chancellor was about this conference, about the hotel,

:48:58.:49:03.

looking... Relaxed isn't the right word, but not panicky. It's when I

:49:03.:49:08.

suggested to him, why not, people know what to do. In other words,

:49:08.:49:13.

there is at least some sort of guide. There is some sort of

:49:13.:49:19.

blueprint. That is what happened with the Belgian bank? Absolutely.

:49:19.:49:24.

If it is a wider economic crisis, there is no script at all. The

:49:24.:49:29.

coalition would have to gather and work out what it will do, and what

:49:29.:49:32.

the Chancellor may want them to do, and whether the Liberal Democrats

:49:32.:49:37.

will sign up to it. The other thing I have noticed, they did have a

:49:37.:49:41.

plan whereby they thought that the political cycle and economic cycle

:49:41.:49:46.

would go in tandem. That they got elected in 2010, they were planning

:49:46.:49:50.

for a full five-year parliament, they would get rid of the pain in

:49:50.:49:53.

the first years, then the growth would come back, living standards

:49:53.:49:57.

would start to rise, there maybe a bit of a windfall if we sell back

:49:57.:50:01.

the banks, and we are off to the races in 2015. I think we are

:50:01.:50:09.

ripping that up now. Latest figures still show the economy growing...

:50:09.:50:15.

Growing less. If you now take the last nine months. And you add them

:50:15.:50:20.

together, you have zero growth. My point was, he will say, don't talk

:50:20.:50:25.

us into a recession, we have to be careful that we did say it has

:50:25.:50:29.

happened yet. It is deeply grim out there but we don't know the

:50:29.:50:34.

consequences for world economic growth. You are right, the politics

:50:34.:50:39.

was assumed to be, rather like Margaret Thatcher's first term,

:50:39.:50:44.

very tough, the lady is not for turning was the big speech in 1981.

:50:44.:50:49.

She contradicted the criticism of 364 economists who wrote to the

:50:49.:50:53.

papers, then she got re-elected. Some people say Labour was divided,

:50:53.:50:58.

some people say there was the Falklands factor. Another thing,

:50:58.:51:02.

people's living standards were improving. Interest rates were

:51:02.:51:06.

plummeting. She went on to win that election. The Tories who grew up in

:51:06.:51:11.

that era, they thought, it is going to be grim, but we will get out of

:51:11.:51:16.

it. In a nutshell, the fear is, we thought we had a lot of time but if

:51:16.:51:19.

it is as bad and going to get worse, because of events in Europe, we

:51:19.:51:24.

might be running out of time, even at this early stage. I think that

:51:24.:51:26.

is right, although I don't think I'm being too generous to them to

:51:27.:51:31.

say, if we are in a world economic recession, their thirst for will be,

:51:31.:51:40.

what on earth do we do -- their first thought. The whole political

:51:40.:51:45.

terms of trade change, it does not automatically fall into Labour's

:51:45.:51:50.

lap if we end up in a real crisis. Arguably, the opposite. Governments

:51:50.:51:56.

often say, and there was some truth for Gordon Brown in 2008-2009, that

:51:56.:52:01.

in a moment of crisis, the country looks for leadership, it looks to

:52:01.:52:05.

its existing leaders, and is tempted -- tempted to hold on to

:52:05.:52:10.

those for fear of something worse for that period. It doesn't

:52:10.:52:13.

necessarily help Labour at that stage. The key is whether people

:52:13.:52:22.

think the Labour Party's analysis that the government contributed to

:52:22.:52:26.

this crisis is right, and whether they think the government gains any

:52:26.:52:33.

credit or could have "a UN something worse. Were speculating

:52:33.:52:37.

about the political consequences of something in four years' time, but

:52:37.:52:40.

the Prime Minister does not know what is going out and in four days'

:52:40.:52:45.

time. The big difference between -- with 2008, Britain was at the

:52:45.:52:50.

centre of that storm. It was a banking crisis, big banks in London.

:52:50.:52:54.

Gordon Brown had an advantage, he was the chair of the G20, and he

:52:54.:53:00.

used it. He used it rather brilliantly. Even his critics would

:53:00.:53:03.

argue that would delight his policies or not, his ability to

:53:03.:53:06.

pull people together in that G20 conference in London was something

:53:06.:53:11.

he did very well. David Cameron, in that sense, and George Osborne,

:53:11.:53:16.

much more spectators. It is a crisis about the eurozone and not

:53:16.:53:20.

the British banks. They can push and argue with their colleagues,

:53:20.:53:24.

they can't actually act. The G20 that the Prime Minister will go to,

:53:24.:53:31.

the equivalent of the one in London, is in Cannes in the beginning of

:53:31.:53:36.

November and I think provided the markets don't cause some horror,

:53:36.:53:40.

that will be a key date. Chancellor has said they have to

:53:40.:53:44.

have their ducks in a row by them. Absolutely. What was striking last

:53:44.:53:48.

night, you get this very bad economic news, crashing markets in

:53:48.:53:51.

Britain and on Wall Street, then you get a European Commissioner

:53:51.:53:55.

implying that a plan is being developed. Up pops Wall Street

:53:55.:53:59.

again, it was too late for the British stock market, but Wall

:53:59.:54:06.

Street bounced up again, as if, somebody is in charge, good. That

:54:06.:54:11.

is how volatile markets are at the moment. And the economic backdrop

:54:11.:54:14.

against it put -- against which people are having to make decisions.

:54:15.:54:18.

They are showing a video about the Prime Minister going into hospitals

:54:18.:54:22.

and so on, which I suspect is the final build-up. We had a lot of

:54:22.:54:25.

young people on the stage, I guess that is to compensate for the fact

:54:25.:54:30.

there are not a lot of young people in the audience. And I think he

:54:30.:54:34.

will say his great passion is education. There are more young

:54:34.:54:40.

people at this conference than they used to be at Tory conferences --

:54:40.:54:45.

than that there used to be. It is quite a long speech, it could be up

:54:45.:54:50.

to an hour. Why do they feel the need to speak for so long? I was

:54:50.:54:54.

speaking to a speech writer last night. There are bits of the speech

:54:54.:54:57.

that are not very important for people in the hall, sometimes not

:54:57.:55:01.

important for journalists or a lot of the audience watching, but they

:55:01.:55:05.

have a value. They are sending a message, I was told, to officials

:55:05.:55:09.

in Whitehall, that the Prime Minister cares about this. Let's

:55:09.:55:13.

take an example, the big society. If that phrase were not in this

:55:13.:55:16.

speech, the message goes around that he doesn't care about it any

:55:16.:55:22.

more. So you are in a meeting as an official, and they say, we don't

:55:22.:55:25.

need to bother, it wasn't in the speech. They go through things and

:55:25.:55:30.

say, we must have a section. It works diplomatically. If there are

:55:30.:55:33.

parts of the world that a Prime Minister doesn't mention, sometimes

:55:33.:55:37.

the diplomatic immunity will say, what is going on, we thought your

:55:37.:55:41.

guide cared. There is a function, a bit like the state of the Union

:55:41.:55:46.

address. You have to show, this is what I care about, these are my

:55:46.:55:54.

priorities. To say, the boss said it matters, so it does. They are

:55:54.:55:58.

still watching a video, we are still waiting for the Prime

:55:58.:56:01.

Minister, I am puzzled as to why this should run it so late. I have

:56:01.:56:07.

no idea. We can joke about the redrafting, but they got that...

:56:07.:56:14.

was a word. It can't have taken that long. When we talk about

:56:14.:56:18.

rewriting, it did not involve any rewriting, it took a decision. Did

:56:18.:56:23.

they say, as they were, you guys have all gone mad, you are

:56:23.:56:26.

reporting that we want people to pay off their credit cards and that

:56:26.:56:29.

is not what we want. Or did they acknowledge that wasn't just a view

:56:29.:56:35.

taken by the media, but a view resonating in large parts of the

:56:35.:56:39.

country, and then saying, to show you that is not what we meant, we

:56:39.:56:45.

are changing the word. They know they are going to take a hit, he

:56:45.:56:50.

nobody likes changing words in politics, but they decided to. We

:56:50.:56:55.

can't know whether some event has happened but he feels he needs to

:56:55.:57:01.

refer to, or argue about. It is quite a good -- big change, from

:57:01.:57:11.
:57:11.:57:17.

I think he is unlikely to mention Ed Miliband. They always say the

:57:17.:57:20.

speed should be prime-ministerial and trying to speak to the country,

:57:20.:57:24.

-- the speech should be. But I think he feels he is in politically

:57:24.:57:30.

a strong enough place to not have to Rafal -- return fire to the Lib

:57:30.:57:35.

Dem press, nor attack Labour. His problem is convincing the country

:57:36.:57:39.

he has got it. He understands the problem and he knows what to do

:57:39.:57:43.

about it. Which in a sense is why the argument over the credit card

:57:43.:57:50.

debt, a small storm in a teacup but indicative of the problem.

:57:50.:57:54.

reason it matters so much, and they didn't understand this, was it

:57:54.:57:57.

suggests that people are out of touch, they think credit cards can

:57:57.:58:03.

be paid off, when they can't. last, and the Conservative

:58:03.:58:08.

Conference... Just as well, I was about to ask you what your

:58:08.:58:11.

favourite colour was! I was going to telly about my favourite

:58:11.:58:15.

instrument! We don't need to, the Prime Minister has arrived on the

:58:15.:58:20.

stage of the Prime Minister -- the Conservative Party Conference of

:58:20.:58:24.

2011, taking the applause of this audience. It was quite a wait for

:58:24.:58:28.

him as well. At least they had some videos to watch, you only had me

:58:29.:58:35.

and Nick to listen to. Here is the This week in Manchester, this party

:58:35.:58:40.

has shown the discipline, the unity and the purpose that is the mark of

:58:40.:58:45.

a party of government. I am proud of my team, I am proud of our

:58:45.:58:50.

members, I am proud to lead this party. But most are all, I am proud

:58:50.:58:57.

of you. -- most of all. You have made this week the success I

:58:57.:59:02.

believe it has been for our party and our country. People have very

:59:02.:59:06.

clear instructions for this government. Lead us out of this

:59:06.:59:14.

economic mess, do it in a way that is fair and right, and as you do it,

:59:15.:59:21.

please build something worthwhile for us and our children. Clear

:59:21.:59:27.

instructions, clear-cut objectives, and from me, a clear understanding

:59:27.:59:33.

that in these difficult times, it is leadership we need. To get our

:59:34.:59:39.

economy moving, to get our society working. And in a year, the

:59:39.:59:44.

Olympics here, when the world will be watching us, to show everyone

:59:44.:59:51.

what Great Britain remains. But first, I want to say something to

:59:51.:59:58.

everyone in this hall. Thank you. Despite the predictions, you won

:59:58.:00:02.

elections all over our country this may, so let us hear it for those

:00:02.:00:06.

great campaigns that you fought and won.

:00:06.:00:16.
:00:16.:00:25.

And thank you for something else, in that AV referendum, you did

:00:25.:00:30.

Britain a service, and you kicked that excuse for a voting system off

:00:30.:00:33.

the political agenda for a generation. So thank you for that

:00:33.:00:43.

too. APPLAUSE

:00:43.:00:50.

And next year, let us make sure we beat Ken, we back Boris and we keep

:00:50.:01:00.
:01:00.:01:00.

London Conservative. APPLAUSE

:01:00.:01:06.

But you're not just winners, you are doers. This summer, as before,

:01:06.:01:13.

Conservatives went to Rwanda, to build classrooms, to help grow

:01:13.:01:16.

businesses, social action, that is the spirit of the modern

:01:16.:01:20.

Conservative Party. Here, at this conference, we've been recording

:01:20.:01:25.

audio books for the blind. Now, I looked very carefully at the books

:01:25.:01:31.

that my colleagues choose. George knew exactly what he wanted.

:01:31.:01:41.

He went straipbgt for The -- straight for The Man Who Would Be

:01:41.:01:49.

King. Boris missed out. He choose - The Joy Of Cycling. There was a

:01:49.:01:57.

book I choose. I said, Ken, this is Crime and Punishment and I want you

:01:57.:02:05.

to read it twice!" after yesterday we should have a group reading of

:02:05.:02:13.

Mog, the Cat. If you read that book, you will remember that Mog helps

:02:13.:02:16.

police catch the burglar, not keep him in the country.

:02:16.:02:26.

APPLAUSE This is a party, and ours is a

:02:26.:02:31.

country that never walks on by. Earlier this year, some people said

:02:31.:02:37.

to me, Libya, that is not our concern. Don't start what you can't

:02:37.:02:43.

finish. Some people even said to me, "Arab, they don't do democracy." If

:02:43.:02:48.

we had stood aside this spring people in Benghazi would have been

:02:48.:02:50.

massacred. Don't let anyone say that this wasn't in our national

:02:50.:02:55.

interest. We remember what Gaddafi did. He

:02:55.:03:00.

was the man who gave Semtex to the IRA. He was behind the shooting of

:03:01.:03:05.

a London police officer. He was responsible for the bombing of a

:03:05.:03:10.

skies over Lockerbie. I say, let us be proud of what we did to help the

:03:10.:03:12.

Libyan people take back their country.

:03:12.:03:22.
:03:22.:03:26.

APPLAUSE In Afghanistan today, there are men

:03:26.:03:36.

and women fighting for Britain, as brave -- bravely as any in our

:03:36.:03:39.

country. They come from Wales, Scotland, Northern Ireland. They

:03:39.:03:45.

have the equipment they need and we are on target to bring them home.

:03:45.:03:49.

Theirs has been a campaign of incredible sacrifice. I know

:03:49.:03:55.

everyone in this hall will want to send a message to everyone who

:03:55.:03:59.

serves and has served, to those in uniform, in our armed services and

:03:59.:04:05.

in our police. And for those not in uniform who keep us safe from

:04:05.:04:09.

terrorism on our streets. We thank you, we salute you. We are proud of

:04:09.:04:19.
:04:19.:04:22.

what you do for our country. APPLAUSE

:04:22.:04:26.

But leadership in the world is about moral strength as much as

:04:26.:04:32.

about military might. A few months ago, I was in Nigeria, on a trade

:04:32.:04:36.

mission. While I was there, I visited a vaccination clinic. It's

:04:36.:04:42.

an experience I will never forget. It was very hot, basic, the lights

:04:42.:04:47.

kept going on and off to. The rows of women cuddling their babies this

:04:47.:04:51.

place was a God send. One of the nurses told me that if it wasn't

:04:51.:04:55.

for British aid, many of those beautiful babies would be dead.

:04:55.:05:00.

In four years' time, this country will have helped vaccinate more of

:05:00.:05:04.

the world's poorest children than there are people in the whole of

:05:04.:05:08.

England. Of course we will make sure your money goes to people who

:05:08.:05:12.

need it most. We will do it in a way that is transparent and

:05:12.:05:15.

accountable. I really believe, that in spite of all our difficulties,

:05:15.:05:19.

this is the right thing to do. It is a mark of our country and our

:05:19.:05:24.

people that we never turn our backs on the world's poorest. I believe

:05:24.:05:26.

everyone in Britain can be proud of that fact.

:05:26.:05:36.
:05:36.:05:41.

APPLAUSE Leadership in tackling tyranny,

:05:41.:05:45.

leadership in fighting poverty. When it came to that decision, to

:05:45.:05:49.

help the Libyan people, there was something dispiriting about the

:05:49.:05:52.

debate here in Britain. It wasn't that some people thought we

:05:52.:05:56.

shouldn't do what we did, that is their right. That is a point of

:05:56.:06:00.

view. It was that so many people actually

:06:00.:06:03.

thought Britain couldn't do something like that any more. You

:06:04.:06:07.

hear that kind of pessimism, about our economic future, our social

:06:07.:06:11.

problems, our political system, that our best days are behind us

:06:11.:06:16.

that we're on a path of certain decline. Well, I'm here to tell you

:06:16.:06:20.

that simply isn't true. Of course, if we sit around and hope for the

:06:20.:06:24.

best, the rest will leave us behind. If we fool ourselves that we can

:06:24.:06:27.

grow our economy, mend our society, give our children the future we

:06:27.:06:31.

want them to have, if we fool ourselvess that we can do these

:06:31.:06:36.

things without effort, without correcting past mistakes, without

:06:36.:06:39.

confronting vested interests and failed ideas, then no, we'll not

:06:39.:06:43.

get anywhere. If we put in the effort. If we correct the mistakes

:06:43.:06:46.

f we correct the vested interests and take on the failed ideas of the

:06:46.:06:50.

past, then I know we can turn this ship around.

:06:50.:06:56.

No-one wants false optimism. I will never pretend there are short-cuts

:06:56.:07:00.

to success. Success will come with the right

:07:00.:07:04.

ideas, the right approach, the right leadership. Leadership from

:07:04.:07:09.

Government to set out the direction we must take and the choices we

:07:09.:07:13.

must make, but leadership also from you.

:07:13.:07:17.

The things that will deliver success are not politicians or

:07:17.:07:22.

Government, it is the people of Britain and the spirit of Britain.

:07:22.:07:27.

Some people say that to succeed in this world we need to be more like

:07:27.:07:32.

India or China or Brazil. I say, we need to be more like us.

:07:32.:07:40.

The real us. Hard-working, pioneering, creative,

:07:40.:07:43.

optimistic, can-do. That is the spirit that has made this United

:07:43.:07:47.

Kingdom what it is - a small country that does great things. One

:07:47.:07:51.

of the most incredible success stories in the history of the world.

:07:51.:07:57.

It's a spirit that I believe is alive and well today.

:07:57.:08:04.

I see it in Tanya Sydney Roberts, the head teacher who started a free

:08:04.:08:09.

school from scratch and it is four times over subscribed. What is her

:08:09.:08:13.

ambition? To do it all over again. That is leadership. I see it in GPs

:08:13.:08:18.

in Bexley who have taken control of their budgets. They have their

:08:18.:08:23.

patients, some poorest in the country, free treatment in Harley

:08:23.:08:28.

Street, on the NHS. That is leadership. I see it in all we saw

:08:28.:08:33.

this summer. Dan Thomas, he watched the riots unfold on television. He

:08:33.:08:38.

didn't sit there and think, "I'll just leave it for the council to

:08:38.:08:44.

clear it up. "he got on the internet, he set out a call and

:08:44.:08:47.

started a social movement. People picked up their brooms and re-

:08:47.:08:51.

claimed the streets. The argument I want to make today is this -

:08:51.:08:55.

leadership works. I know how tough things are.

:08:55.:08:59.

I don't for one minute underestimate how worried people

:08:59.:09:03.

feel, whether about making ends meet or the state of the world

:09:03.:09:09.

economy. The truth is, right now, we need to be energised, not

:09:09.:09:12.

paralysed by gloom and fear. Half the world is booming. Let's go and

:09:12.:09:17.

sell to them. Many of our communities are thriefing. Let's

:09:17.:09:21.

make the rest like them. There is so much great about our country. We

:09:21.:09:26.

don't have to accept that success in this century automatically

:09:26.:09:29.

belongs to others. We just have to remember the origin

:09:29.:09:35.

of our achievements, the people of Britain taking a lead.

:09:35.:09:45.
:09:45.:09:49.

That is why much... APPLAUSE That is why so much of my

:09:49.:09:52.

leadership is about unleashing your leadership.

:09:52.:09:56.

Giving everyone who wants it the chance to seize the opportunity,

:09:56.:10:00.

the support and above all, the freedom to get things done and

:10:01.:10:03.

giving everyone who wants to believe it, the confidence that

:10:03.:10:08.

working hard and taking responsibility will be rewarded,

:10:08.:10:11.

not punished. Let us reject the pessimism.

:10:11.:10:16.

Let us bring on the can-do optimism. Let us summon the energy and

:10:16.:10:19.

appetite to fight for a better future for our country, Great

:10:20.:10:29.
:10:30.:10:31.

Britain. APPLAUSE

:10:31.:10:35.

Now, of course, that starts with our economy.

:10:35.:10:41.

As we meet here in Manchester, the threat to the world economy and to

:10:41.:10:47.

Britain is as serious as in 2008, when world recession loomed. The

:10:47.:10:51.

eurozone is in crisis. The French and the German economies

:10:51.:10:55.

have slowed to a standstill. Even mighty America is questioned

:10:55.:11:01.

about her debts. It is an anxious time.

:11:01.:11:06.

Prices and bills keep going up. Petrol, electricity, the weekly

:11:06.:11:12.

shop. On the news, it's job losses, cutbacks, closures. You think about

:11:12.:11:16.

tuition fees, house prices, the cost of a deposit. You wonder how

:11:16.:11:20.

our children are going to manage. Now, of course Government can help.

:11:20.:11:26.

This one is. We've cut petrol duty. We've kept

:11:26.:11:30.

the winter fuel allowance, cold weather payments. We have frozen

:11:30.:11:34.

council tax this year. As George said on Monday, we'll freeze it all

:11:34.:11:44.
:11:44.:11:45.

over again next year too. APPLAUSE

:11:45.:11:51.

But we need to tell the truth about the overall economic situation.

:11:51.:11:54.

People understand that when the economy goes into recession, times

:11:54.:11:58.

get tough. But normally after a while things

:11:58.:12:01.

pick up. Strong growth returns. People get

:12:01.:12:06.

back into work. This time, it's not like that.

:12:06.:12:13.

People want to know why the good times are so long in coming. The

:12:13.:12:18.

answer is straightforward, but uncomfortable. This wasn't a normal

:12:18.:12:24.

recession, it was a debt crisis. It was caused by too much borrowing

:12:24.:12:29.

by individuals, banks, businesses and most of all by Governments.

:12:29.:12:33.

When you're in a debt crisis, some of the normal things that

:12:33.:12:37.

Governments can do to deal with a normal recession, like borrowing to

:12:37.:12:42.

cut taxes, or increasing spending - these things won't work because

:12:42.:12:46.

they lead to more debt which would make the crisis worse. Why? Because

:12:46.:12:50.

it takes risks of higher interest rates, less confidence and the

:12:50.:12:55.

threat of even higher taxes in future. The only way out of a debt

:12:55.:12:59.

crisis is to deal with your debts. That's why households are paying

:12:59.:13:04.

down the credit card and the store card bills. It means banks getting

:13:04.:13:07.

their books in order. It means Governments, Governments all over

:13:08.:13:12.

the world, cutting spending and living within their means.

:13:12.:13:17.

This coalition Government, Conservatives and Liberal Democrats,

:13:17.:13:21.

Nick Clegg and I, we've led the way here in Britain.

:13:21.:13:25.

Our plan is right. Our plan will work.

:13:25.:13:31.

I know that you can't see it or feel it right now, but think of it

:13:31.:13:35.

like this, the new economy we're building, it is like building a

:13:35.:13:38.

house. The most important part is the part

:13:38.:13:43.

you can't see. The foundations.

:13:43.:13:48.

Slowly, but surely we are laying solid foundations for a stronger

:13:48.:13:53.

future. The vital point is this; if you

:13:53.:14:03.
:14:03.:14:07.

don't stick with it, it won't work. There's something else... APPLAUSE

:14:07.:14:11.

There's something else that we have to stick to, because we're not in

:14:11.:14:15.

the euro, we can lay these foundations ourselves, on our own

:14:15.:14:20.

terms, in our own way. So, let me say this, as long as I'm Prime

:14:20.:14:23.

Minister, this country will never join the euro.

:14:23.:14:33.
:14:33.:14:41.

APPLAUSE And I won't let us be sucked into

:14:41.:14:46.

endless bail outs of countries that are in the euro either. Yes, we are

:14:46.:14:50.

members of the IMF and we have responsibilities there. When it

:14:50.:14:55.

comes to any euro bail out mechanism, my approach is simple -

:14:55.:15:05.
:15:05.:15:09.

Labour got us into it and I am Of course, our Hall deficit-

:15:09.:15:13.

reduction programme is really just one big bear out of the last

:15:13.:15:19.

government -- Hall a deficit. -- one big bale out. We have been

:15:19.:15:23.

subjected to a national apology Tour. Sorry for sucking up to

:15:23.:15:26.

Gaddafi, for not regulating the banks probably for crushing civil

:15:26.:15:30.

liberties, for failing to go green, for not building enough houses.

:15:30.:15:34.

Sorry for the infighting that made it the most dysfunctional

:15:34.:15:37.

government in the history of our country. But you know what, nothing.

:15:37.:15:41.

Not a peep on the thing they really need to say sorry for. Wasting

:15:41.:15:51.
:15:51.:15:59.

billions and billions of your money. You know what the Shadow Chancellor,

:15:59.:16:04.

Ed Balls, said last week? That Labour didn't spend any more money

:16:04.:16:13.

than they had available. Hello? Ed, you spend �428 billion more than

:16:13.:16:19.

you had available. And there is only one conclusion you can draw

:16:19.:16:23.

from this. We must never, ever, let these people anyway India our

:16:24.:16:33.

economy ever again. For faith -- let these people anywhere near or

:16:33.:16:43.
:16:43.:16:47.

our economy ever again. As before, it falls to asked to

:16:47.:16:53.

clear up after a Labour government. -- it falls to ask. I have insisted

:16:53.:16:57.

that we do it in a way that is fair. You can't cut the deficit the size

:16:57.:17:01.

of ours without asking everyone to make a sacrifice, but those with

:17:01.:17:07.

the most money are bearing the biggest burden. We have imposed a

:17:07.:17:11.

permanent levy on the banks, we have raised taxes on people who

:17:11.:17:16.

make their money overseas but to live here, and at the same time, we

:17:16.:17:21.

have given will help to the poorest and most vulnerable. We are taking

:17:21.:17:25.

it over a million of the lowest paid people out of tax or

:17:25.:17:30.

altogether, and after the scandal of the 75p raised for pensions, we

:17:30.:17:35.

are linking pensions to earnings so elderly people will be �10,000

:17:35.:17:39.

better off in their retirement. Yes, this is a One nation deficit-

:17:39.:17:49.
:17:49.:17:54.

reduction plan from a one nation He and my friends, there is

:17:54.:17:59.

something else that we, the Conservatives, have done. The

:17:59.:18:04.

National Health Service is the most precious institution in our country.

:18:04.:18:09.

The most precious institution to my family, to your family. At the last

:18:09.:18:14.

election, it was Labour policy to cut the NHS. It was Liberal

:18:14.:18:19.

Democrat policy to cut the NHS. It was our policy, Conservative policy,

:18:19.:18:23.

to protect the NHS and spend more on it than this year, next year,

:18:23.:18:27.

and the year after that, because we are the party of the NHS, and as

:18:27.:18:37.
:18:37.:18:43.

long as I am here, that is the way But real fairness, will fairness

:18:43.:18:49.

isn't just about what the state spends. It is about the link

:18:49.:18:53.

between what you put in and get out. As we debate what people get from

:18:53.:18:57.

the state, let us remember how we generate the taxes in the first

:18:57.:19:01.

place. So to the unions planning to strike over public sector pensions,

:19:01.:19:09.

I say this. You have every right to protest, but our population is

:19:09.:19:14.

ageing, our public sector pension system is unaffordable, the only

:19:14.:19:18.

way to give public sector workers a decent, sustainable pension system,

:19:18.:19:24.

which I want to, and to do right by the taxpayer, is to ask public

:19:24.:19:29.

servants to work a little longer and pay a little more. That is fair.

:19:29.:19:34.

What is not fair, what is not right, is going on strike and hitting the

:19:34.:19:44.
:19:44.:19:57.

very people that are helping to pay Dealing with our debts, that is

:19:57.:20:03.

just line one, caused one of our plan for growth. We need jobs. We

:20:03.:20:07.

are not going to get jobs by growing government, we need to grow

:20:07.:20:12.

our businesses. So here is our growth plan. It is to do everything

:20:12.:20:16.

we can to help businesses start to grow, to thrive and succeed. Where

:20:16.:20:20.

that means backing off, cutting regulation, we will do that. Where

:20:20.:20:24.

that means intervention and investment, we will intervene, we

:20:24.:20:28.

will invest. Whatever it takes to help our businesses take on the

:20:28.:20:33.

world, we will do it. The global economy has been transformed in

:20:33.:20:37.

recent years. It used to take companies decades to become world

:20:37.:20:42.

leaders. Now some of them do it in just a few years. When you step off

:20:42.:20:47.

the plane in Delhi, or Shanghai, or Lagos, you can feel the energy, the

:20:47.:20:52.

hunger, the drive to succeed. We need that here. There is too much,

:20:52.:20:58.

frankly, can't do soggy mess around. We need to be a sharp, focused, can

:20:58.:21:03.

do country. Let me say this. As we go for growth, the last thing I

:21:03.:21:08.

want is to pump the old economy back up with a banking sector out

:21:08.:21:12.

of control, manufacturing squeezed and prosperity confined to justify

:21:12.:21:17.

parts of the country, and a few industries. Our plan is to build

:21:17.:21:23.

something new, and to build something better. We can do it.

:21:23.:21:27.

Look at what is happening in East London. Europe's financial capital

:21:27.:21:33.

is now matched by Europe's technology capital. Facebook, Intel,

:21:33.:21:43.

Google, Cisco, even Silicon Valley Bank. Our potential and investing

:21:43.:21:48.

right here. The world's most famous digger, the JCB, made in

:21:48.:21:53.

Staffordshire. Do you watch Formula 1? Ken does. Whether it is the

:21:53.:21:56.

German Michael Schumacher, the Australian Mark Webber, what the

:21:56.:21:59.

Brazilian Rubens Barrichello, they will have one thing in common. When

:21:59.:22:09.
:22:09.:22:16.

they get into that car, it is made This is the new economy we must

:22:16.:22:22.

build, leading an advanced technology, Life Sciences,

:22:22.:22:26.

engineering, creating, exporting. It is easy to talk about these

:22:26.:22:31.

things, it is more difficult to deliver them. For a start, you will

:22:31.:22:36.

not deliver it, I just dividing industries into saints and sinners.

:22:36.:22:40.

That is not just an insult to the financial insurance companies, the

:22:40.:22:44.

accountancy firms, the professional services that make us billions of

:22:44.:22:47.

pounds and employ millions of people. It is just much too

:22:47.:22:51.

simplistic. I have always argued, we need businesses to be more

:22:51.:22:55.

socially responsible. But to get proper growth, to rebalance our

:22:55.:23:00.

economy, we have got to put some important new pieces into place. We

:23:00.:23:03.

have got to take action now to get credit flowing to the small

:23:03.:23:07.

businesses that are the engine of our economy. We have got to ring-

:23:07.:23:11.

fence the banks so that they fulfil their role of landing safely to the

:23:11.:23:15.

real economy. We are setting up technology and innovation centres,

:23:15.:23:19.

where scientists and academics can work with entrepreneurs to turn

:23:19.:23:22.

brilliant inventions into successful products. We have

:23:22.:23:25.

reformed taxation to encourage enterprise and investment in the

:23:25.:23:30.

high-growth firms. But we are also going to have to take some

:23:30.:23:34.

controversial decisions, and to challenge some vested interests.

:23:34.:23:39.

When firms need to adapt quickly, to win orders, to win the contract,

:23:39.:23:43.

we cannot go on with the rigid, outdated employment legislation of

:23:43.:23:49.

the past. I know the critics will say, what about workers' rights? We

:23:49.:23:54.

mustn't forget the important worker right or all, the right to have a

:23:54.:24:04.
:24:04.:24:15.

When in modern business you are quick or dead, it is hopeless that

:24:15.:24:19.

our infrastructure lags so far behind Europe. That is why we need

:24:20.:24:23.

to build a high-speed rail and we need to get the fastest broadband

:24:23.:24:26.

network in Europe as well. When a balanced economy needs workers with

:24:27.:24:32.

skills, we need to put an end to the old slobbery about vocational

:24:32.:24:35.

education and training -- old snobbery. This government is

:24:35.:24:39.

providing training for an extra 250,000 apprenticeships across this

:24:39.:24:44.

Parliament, but we're not getting enough back from big business. So

:24:44.:24:48.

here is a direct appeal. If you want skilled employees, we will

:24:48.:24:52.

provide the funding, we will cut the red tape, but you have got to

:24:52.:24:56.

show the leadership and give us the apprenticeships this country so

:24:56.:25:06.
:25:06.:25:10.

badly needs. Unlocking growth, rebalancing our

:25:10.:25:16.

economy, it also requires change in Brussels. The EU is the biggest

:25:16.:25:20.

single market in the world, it has got amazing potential, but it is

:25:20.:25:25.

not working properly. Almost every day, I see. This new regulation

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

coming our way. A couple of weeks I came across this EU directive. Do

:25:38.:25:42.

you know what it was about? Whether people with diabetes should be

:25:42.:25:47.

allowed to drive. What an earth has this got to do with the single

:25:47.:25:53.

market. Do you suppose anyone in China is thinking, I know what will

:25:53.:25:57.

grow iconic, let's get those diabetics off the road. Europe has

:25:57.:26:02.

got to wake up and the EU growth plan that I have published, that I

:26:02.:26:06.

want to publish at every meeting, every council, every summer, that

:26:06.:26:13.

is the alarm call that Russell needs -- Brussels needs. Our

:26:13.:26:19.

businesses need the space to go -- grow, Mick literally our -

:26:19.:26:24.

literally. It is hard to blame local people for imposing local

:26:24.:26:28.

developments -- opposing local developments when we get so little

:26:28.:26:32.

of the benefits. We are changing that. If a new manufacturing plant

:26:32.:26:35.

is billed in your area, your council will keep the business

:26:35.:26:40.

rates. -- built in your area. This is a low-cost plan for a localised

:26:40.:26:46.

party. -- local list plan. People are worried about what this means

:26:46.:26:50.

for consolation. I love our countryside and would never do

:26:50.:26:54.

anything to put it at risk. But we have got to get the balance right.

:26:54.:27:02.

The proportion of land in England that is currently built up his 9%.

:27:02.:27:07.

Our - is 9%. There are businesses desperate to expand to thousands of

:27:07.:27:11.

people but are stuck in the mud of are planning system. We are going

:27:11.:27:19.

To those who oppose everything we do, my message is this. Take your

:27:19.:27:23.

arguments down to the Jobcentre, because we are going to get Britain

:27:23.:27:33.
:27:33.:27:39.

back to work. This new economy we are building,

:27:39.:27:44.

it must be an economy for everyone. You know the real tragedy of

:27:44.:27:47.

Labour's economy? It is not just that it was unsustainable,

:27:47.:27:52.

unbalanced, overwhelmed with dead, it is that it left so many people

:27:52.:27:57.

behind. They talked a lot about opportunity, but they ripped the

:27:57.:28:02.

ladders of opportunity away. We had an education system that left

:28:02.:28:06.

hundreds of thousands on prepared for work. We had a welfare system

:28:06.:28:11.

that trapped thousands in its dependency. We had an immigration

:28:11.:28:20.

system that brought migrant workers to do the jobs we were not paying

:28:20.:28:24.

those on welfare to do. We had a government, oh boy did we have a

:28:24.:28:29.

government, that creamed the taxes off the boom to splurge back into

:28:29.:28:32.

the benefits, redoubling the failure all over again. Labour, who

:28:32.:28:37.

tell us they care so much about fairness and justice, who say they

:28:37.:28:40.

want to hit the rich and help the poor, Labour gave us the casino

:28:40.:28:45.

economy and the welfare society. Who is going to lift the poorest

:28:45.:28:50.

up? Who is going to get our young people back to work? Who is going

:28:50.:28:54.

to create a fairer society? Not you, the self-righteous Labour Party, it

:28:54.:28:58.

will be asked, the Conservatives, who built the economy that works

:28:58.:29:03.

for everyone and gives hope to everyone in our economy. -- in our

:29:03.:29:13.
:29:13.:29:23.

country. That must start with a good

:29:23.:29:30.

education for everybody. It sounds so simple. Proper teaching, good

:29:30.:29:36.

discipline, rigorous exams, but it is hard. It is hard, because our

:29:36.:29:40.

education system has been effected by an ideology that instead of

:29:40.:29:44.

insisting on every child's success, as too often made excuses for

:29:44.:29:53.

failure. They say that poor kids Will in this community you can't

:29:53.:29:58.

expect too much, you really must understand. I do understand. Oh,

:29:58.:30:04.

yes, I understand. But believe me, I am disgusted by the idea that we

:30:04.:30:08.

should aim for any less for a child from a poor background and a rich

:30:09.:30:18.
:30:19.:30:28.

APPLAUSE I have contempt for the notion that we should accept narrow

:30:28.:30:33.

horizons for a black child than a white one. It is the age-old irony

:30:33.:30:39.

of the liberal left. They practise oppression and they call it

:30:39.:30:49.
:30:49.:30:49.

equality. So we... APPLAUSE So we are fighting back.

:30:50.:30:55.

Something really massive is happening in our country. There is

:30:55.:30:59.

now a irrefruitable proof that with the right schools, right freedoms

:30:59.:31:03.

and leadership, we can transform the education of the most deprived

:31:03.:31:08.

children. You heard yesterday from that inspirational student from

:31:08.:31:11.

Burlington Danes Academy in Hammersmith.

:31:11.:31:18.

An InterCity school, deprived area, almost half of the children on free

:31:18.:31:23.

school meals. But this year five- quarters got five good gstgss,

:31:24.:31:28.

including English and -- gsts, including English and maths. That

:31:28.:31:32.

is better than schools in Cambridgeshire, Sussex got last

:31:32.:31:38.

year. Some of the most affluent counties in our country. Why?

:31:38.:31:41.

Because the head teacher, her staff, the parents, they all rose up and

:31:41.:31:47.

said, "We are as good as anyone. Our children can achieve anything."

:31:47.:31:57.
:31:57.:32:00.

Leadership works and we'll make it work in all of our schools.

:32:00.:32:04.

APPLAUSE We're backing more head teachers to turn more schools into

:32:04.:32:08.

academies. We want charities, entrepreneurs to come into our

:32:08.:32:12.

education system and set up the new free schools too. Change is really

:32:12.:32:16.

underway. For the first time in a long time, the numbers studying

:32:16.:32:26.

those core and vital subjects, history, geography are going up.

:32:26.:32:33.

Exams will be marked on grammar. Teachers will be able to search

:32:33.:32:37.

bags, for weapons, alcohol, anything. It is a long road back to

:32:37.:32:44.

rigour, but my friends, we are well on our way.

:32:44.:32:51.

APPLAUSE And here is something else we're

:32:51.:32:57.

going to do, in Britain today we do have a group of schools that are

:32:57.:33:03.

utterly intolerant of failure, where 90% of pupils get five good

:33:03.:33:07.

GCSEs, yes, private schools. You've heard me talk about social

:33:07.:33:12.

responsibility. I want to see private schools start academies and

:33:12.:33:18.

sponsor akam mis in the state system. Wellington does it Dulwich

:33:18.:33:21.

does it, others can do. The apartheid between private and state

:33:21.:33:25.

education is one of the biggest wasted opportunities in our country

:33:25.:33:30.

today. Let it be us, the Conservative Party, who helped to

:33:30.:33:40.
:33:40.:33:42.

tear it down. APPLAUSE

:33:42.:33:47.

Rigour back in learning, standards back in schools, teachers back in

:33:47.:33:49.

control - the Conservatives are back in Government.

:33:49.:33:59.
:33:59.:34:01.

APPLAUSE An economy that works for everyone

:34:01.:34:04.

means sorting out welfare and immigration as well. Welfare began

:34:04.:34:09.

as a lifeline. For too many it has become a way of life. Generation

:34:09.:34:13.

after generation, in the cycle of dependency and we are determined to

:34:13.:34:17.

break it. Part of our answer is controlling immigration.

:34:17.:34:22.

So, we put a cap on the numbers of none EU immigrants allowed to come

:34:22.:34:27.

and work in our country. We must not lock out talent. I want the

:34:27.:34:31.

best and brightest, entrepreneurs, students and scientists from around

:34:31.:34:36.

the world to get the red-carpet treatment and they will. The fake

:34:36.:34:40.

marriages, people arriving for a month and staying for year, the

:34:40.:34:43.

criminals who use the Human Rights Act to try and stay in the country,

:34:43.:34:48.

we are clamping down on each and every one of them.

:34:48.:34:55.

APPLAUSE We've got to get some sense back

:34:55.:34:58.

into our labour market and get British people back into work.

:34:58.:35:03.

Now, for years, you have been conned by Governments.

:35:03.:35:08.

To keep the unemployment figures down, they parked as many people as

:35:08.:35:13.

possible on to the sick - 2.5 million, to be exact. Not

:35:13.:35:17.

officially unemployed, but claiming welfare, no real questions asked.

:35:17.:35:23.

Today, we're asking those questions. It turns out that of the 1.3

:35:23.:35:27.

million people who have put in a claim for the new sickness benefit

:35:27.:35:32.

in recent years, one million are either able to work, or stop their

:35:32.:35:35.

claim before their medical assessment had been completed.

:35:35.:35:38.

Under Labour, they got something for nothing.

:35:38.:35:42.

With us, they will only get something if they give something.

:35:42.:35:47.

If they are prepared to work, we're going to help them and I mean

:35:47.:35:51.

really help them. If you've been out of work and on benefits for

:35:51.:35:55.

five years, a quick session down the Jobcentre, some help with your

:35:55.:35:59.

CV, that is not going to cut it. That will not help you. You need to

:35:59.:36:05.

get your self-esteem and confidence back. You need training and skills,

:36:05.:36:07.

intensive support. Previous Governments will never willing to

:36:07.:36:11.

make a proper commitment. Were never willing to sign the necessary

:36:11.:36:15.

cheque to get this done. Never willing to break the Treasury rules

:36:15.:36:20.

to make it happen. We have. We have invested now so we don't pay later.

:36:20.:36:25.

We are going to spend up to �14,000 on individual people, just to get

:36:25.:36:31.

them trained and back into work. I know that is a lot of money, but

:36:31.:36:37.

it is worth it. Let it be us, let it be this Government, let it be

:36:37.:36:41.

the Conservatives that finally build an economy where no-one gets

:36:41.:36:51.
:36:51.:36:52.

left behind. APPLAUSE

:36:52.:36:55.

And for most people, for most people, that means also a home of

:36:55.:37:00.

their own. Not just any old home, but a decent

:37:00.:37:08.

one, light and spacious. Rooms for the kids to play in. The percentage

:37:08.:37:12.

of British people who own their own home is going down. Unless you get

:37:12.:37:16.

help from your parents, do you know the average age of a first-time

:37:16.:37:22.

buyer in our country today? It is Now, you hear some people say, well,

:37:23.:37:28.

why can't we be like in Europe where everyone rents? There is

:37:28.:37:32.

nothing to do, we don't have the money. I disagree. The failure of

:37:32.:37:35.

the housing market is bound newspaper the debt crisis. Because

:37:35.:37:39.

the lenders won't lend, the builders won't build and the buyers

:37:39.:37:43.

can't buy, we are going to sort this out. We're going to bring back

:37:43.:37:51.

the right buy your council house. We'll use that money to build new

:37:51.:37:57.

homes. It was Macmillan who made us the home owning democracy. Margaret

:37:57.:38:01.

Thatcher what gave us the right to buy. Let us inspire a new Tory

:38:01.:38:11.
:38:11.:38:13.

housing revolution. APPLAUSE

:38:14.:38:17.

And while I'm on the subject of those great Conservative figures,

:38:18.:38:23.

let me say this, I'm incredibly fortunate in leading this party

:38:24.:38:30.

that I've had the full-throated, incredible support from all our

:38:30.:38:34.

previous leaders. Michael Howard, Sir John Major and of course

:38:34.:38:38.

Margaret Thatcher. And you know what, in this party we don't boo

:38:38.:38:43.

our leaders, we are proud of what they've done fosh our party and

:38:43.:38:47.

what they've -- for our party and what they've done for our country.

:38:47.:38:57.
:38:57.:39:15.

A few months ago, we were all shocked by the scenes on our

:39:15.:39:21.

streets, in London and in other parts of the country. Perhaps

:39:21.:39:26.

almost the most shocking thing is that people weren't that surprised.

:39:26.:39:30.

There was no great call for a public inquiry to find out what has

:39:30.:39:35.

gone wrong. Instead, what I think you could hear was the angry

:39:35.:39:40.

insistent, overwhelming cry of a country shouting to its leaders. We

:39:40.:39:45.

know, we know high this happened. We know what has gone wrong.

:39:45.:39:49.

We know that if the system keeps fudging the difference between

:39:49.:39:54.

right and wrong we'll never improve behaviour. We know as long as the

:39:54.:39:57.

police go around with their hand behind their back we will never

:39:57.:40:01.

make our streets truly safe. More than anything, we know that if

:40:01.:40:03.

parents don't meet their responsibilities, their kids will

:40:03.:40:09.

get out of control. What people were saying to us is,

:40:09.:40:14.

"Yes, we know what has gone wrong and we want you to put it right."

:40:15.:40:19.

One of the things that people want is speedy justice.

:40:19.:40:23.

After the riots, those responsible were put straight into court and

:40:23.:40:26.

tough sentences were quickly handed out.

:40:26.:40:31.

I've made it clear to the police, the prosecution services, the

:40:31.:40:34.

Ministry of Justice, the Attorney- General f we can do that then, let

:40:34.:40:37.

us do it all the time, year in, year out.

:40:37.:40:47.
:40:47.:40:50.

APPLAUSE We all know that the problems go

:40:50.:40:54.

deeper. That is why my driving mission in

:40:54.:40:57.

politics is to build that bigger, stronger society.

:40:57.:41:02.

It starts with families. I want to make this the most

:41:02.:41:05.

family-friendly Government the country has ever seen.

:41:05.:41:08.

More childcare, more health visitors, more relationship support,

:41:09.:41:13.

more help with parenting. For the 120,000 families that are the most

:41:13.:41:16.

troubled, and frankly cause the most trouble, a commitment to turn

:41:16.:41:20.

their lives around by the end of this Parliament.

:41:20.:41:27.

Today, I can announce this; another new focus.

:41:27.:41:33.

There are 65,000 children in care. Do you know how many children there

:41:33.:41:39.

are in care under the age of one? 3,660.

:41:39.:41:44.

To you know how many children under the age of one are adopted in our

:41:44.:41:50.

country last year? 60. This may not seem like the biggest

:41:50.:41:54.

issue facing our country, but it is the biggest issue for these

:41:54.:41:58.

children. How can we have let this happen? We have got people flying

:41:58.:42:05.

all over the world to adopt babies, while the care system at home

:42:05.:42:07.

agonises about placing black children with white families. With

:42:07.:42:11.

the right values w the right effort, let us be the ones that end this

:42:11.:42:15.

scandal and help these, the most vulnerable children of all.

:42:15.:42:25.
:42:25.:42:36.

But for me, leadership on families also means speaking out on marriage.

:42:36.:42:41.

Marriage is not just a piece of paper, it pulls people together

:42:41.:42:45.

through the ebb and flow of life. It says powerful things about what

:42:45.:42:50.

we value. So, yes, we will recognise marriage and the tax

:42:50.:42:53.

system. While also doing something else.

:42:53.:42:58.

I stood before a Conservative conference once and I said it

:42:58.:43:01.

shouldn't matter whether commitment was between a man and a woman or a

:43:01.:43:04.

man and a man, or a woman and a woman.

:43:04.:43:10.

You applauded me. Five years on, we are consulting on

:43:10.:43:15.

legalising gay marriage. To anyone who has reservations, I say this,

:43:15.:43:21.

yes, it's about equality, but it's also about something else -

:43:21.:43:24.

commitment. Conservatives believe in the ties that bind us, that

:43:24.:43:28.

society is stronger when we make vows to each other and we support

:43:28.:43:33.

each other. So, I don't support gay marriage in spite of being a

:43:33.:43:35.

Conservative, I support gay marriage because I am a

:43:35.:43:45.
:43:45.:43:54.

Conservative. We value community spirit and

:43:54.:43:59.

social action too. We see it every day in our own lives, in our own

:43:59.:44:02.

communities. It is one of the great things about Britain. Do you know

:44:02.:44:05.

what? After the last five years of Labour Government the number of

:44:06.:44:09.

people volunteering went down. Last year the decline was halted. Now

:44:09.:44:12.

the proportion of people saying they belong strongly to their

:44:12.:44:16.

neighbourhood is the highest for a decade.

:44:16.:44:21.

If you're cynical, go to Wythenshawe, a few miles from here.

:44:21.:44:26.

It used to be ravaged by crime and drugs and graffiti. Local people

:44:26.:44:30.

opened a community hall, a gym. They got the kids off the street.

:44:30.:44:34.

They kicked out the drug habit and the drug dealers. Of course

:44:34.:44:36.

Government cannot legislate for this, but we can support the

:44:36.:44:40.

leadership that makes it happen. That is why we're giving

:44:40.:44:44.

neighbourhoods new powers to take over the running of playgrounds,

:44:44.:44:48.

pubs and parks. It is why we're making it easier for people to give

:44:48.:44:54.

their time and money to good causes. Why we have elected mayors. Now

:44:54.:44:57.

we're drawing up plans to open up our public services and give more

:44:57.:45:03.

power to people. But one of the biggest things holding people back

:45:03.:45:09.

from playing a part in biging a bigger society is health and safety.

:45:09.:45:13.

I was told recently about a school that wanted to buy a set of high-

:45:13.:45:18.

lighter pens. With the pens came a warning. Not

:45:18.:45:24.

so fast, make sure you comply with the control of substances hazardous

:45:24.:45:29.

of health regulations 2002. Make sure you include plenty of fresh

:45:29.:45:33.

air and hand and eye protection. You try highlighting with all of

:45:33.:45:39.

that! This wasn't how a great nation was built. Britannia didn't

:45:39.:45:46.

rule the waves with her armbands on. We're scaling it back. The CBR

:45:46.:45:50.

checks, we're cutting them back. At last, let's bring some common sense

:45:51.:46:00.
:46:01.:46:03.

Building stronger communities, that is why we introduced National

:46:03.:46:06.

Citizen Service. You saw it for yourself at the start of this

:46:06.:46:11.

afternoon's session. One of the people who took part this year,

:46:11.:46:17.

Owen Carter, wrote to me and said, this has changed my perspective of

:46:17.:46:21.

life. You can do anything if you work hard and have a supportive

:46:21.:46:25.

team around you. You can do anything. That is the spirit I am

:46:26.:46:30.

talking about. That is why we are tripling the scale of National

:46:30.:46:34.

Citizen Service, that is how we will build our big society, and

:46:34.:46:41.

that his leadership. Next year, we are going to welcome the world for

:46:41.:46:45.

the Olympics and the Queen's Diamond Jubilee. This two event say

:46:46.:46:51.

a lot about Britain. Tradition and modernity, all in one. Today, we

:46:52.:46:55.

can choose to be a country that is back on its feet and striding

:46:55.:46:59.

forward. Paying down our debt and earning a living, getting people

:46:59.:47:03.

off welfare and into work, breaking new ground in education with

:47:03.:47:07.

excellence for Everyone and not a privileged few. We can be a country

:47:07.:47:11.

where people look back on their life and say, I have worked hard,

:47:11.:47:15.

raised a family, I am part of a community and all along it was

:47:15.:47:20.

worth my while. We are too far from that today, but we can get there.

:47:20.:47:24.

It is not complicated but it is not easy either, because nothing

:47:24.:47:27.

worthwhile is easily won. But we have been told we were finished

:47:27.:47:33.

before. They told us when we lost an empire, we couldn't find a role,

:47:34.:47:38.

but we took on communism, we help bring down the Berlin Wall. They

:47:38.:47:41.

called our economy the sick man of Europe but we turned this country

:47:41.:47:45.

into a beacon of enterprise. No, Britain never had the biggest

:47:45.:47:49.

population, the largest land mass, the richest resources, but we had

:47:49.:47:53.

the spirit. It is not the size of the dog in the fight, it is the

:47:53.:47:59.

size of the fight in the dock. Overcoming challenge. Confounding

:47:59.:48:09.
:48:09.:48:11.

the sceptics, reinventing ourselves. That is what we do, it is called

:48:11.:48:16.

leadership. Let this time of challenge be turned into a time of

:48:16.:48:19.

opportunity. Not sitting around watching things happen and

:48:19.:48:22.

wondering why, but standing up, making things happen and asking,

:48:22.:48:27.

why not? We have the ideas, we have the people, and now we have the

:48:28.:48:31.

government that is freeing these people, backing those ideas. Let's

:48:31.:48:34.

see an optimistic future, let's show the world some fight, let's

:48:34.:48:42.

pull together, work together and lead Britain to better days ahead.

:48:42.:48:51.

STUDIO: David Cameron finishes his address to the Conservative Party

:48:51.:48:55.

Conference of 2011. He gets the immediate, almost statutory

:48:55.:49:02.

standing ovation. Walking around the stage now, taking the applause.

:49:02.:49:07.

He said the debt crisis was different from previous crises. And

:49:07.:49:14.

that is why this situation seems soaked in a tractable. --

:49:14.:49:18.

intractable. There was no mention of Ed Miliband. There had been a

:49:18.:49:22.

debate about whether he should or not. He settled for attacking Ed

:49:22.:49:27.

Balls instead, that always goes down well at a Tory conference. He

:49:27.:49:30.

attacked Labour for creating a casino economy and their welfare

:49:30.:49:35.

society. He talked a lot about school reform, he regards that as

:49:35.:49:40.

part of the success for radical Tory reforms he is introducing, and

:49:40.:49:46.

well fat, too. He also added the need for a new Tory revolution --

:49:46.:49:51.

and welfare, too. So far, it seems to involve re- instituting the

:49:52.:49:56.

right to buy. Mr Cameron, making his way through the conference hall,

:49:56.:50:00.

taking the handshakes and applause of the party faithful. Looking at

:50:00.:50:05.

some of the early media reaction, I would not say that the media on the

:50:05.:50:09.

left or right are regarding this as his finest conference performance.

:50:09.:50:15.

Quite a lot of criticism on the various tweets and from various

:50:15.:50:20.

press commentators. Instant reactions are not always the ones

:50:20.:50:25.

that stay with people in the end. It has been a relatively subdued

:50:25.:50:30.

Conservative conference this year. Even this standing ovation is, by

:50:30.:50:35.

Tory standards, quite subdued as well. It is as if they are going

:50:35.:50:39.

through the motions. Mr Cameron looks a little tired, these are

:50:39.:50:44.

difficult times. He didn't do well on the international scene and the

:50:44.:50:47.

incredible the difficult international economic position

:50:47.:50:52.

that Britain finds itself in -- he didn't dwell on. We hope to be

:50:52.:50:56.

speaking to William Hague shortly. But me go to Johan Fredriksen, who

:50:56.:51:06.
:51:06.:51:07.

will get some reaction of her own. Your first impression, what did you

:51:07.:51:12.

think? I was interested to find out he is putting such emphasis on

:51:12.:51:19.

improving people's ability to volunteer. I am passionate about

:51:19.:51:23.

volunteering and I feel that makes participation and integration into

:51:23.:51:28.

society, and it makes people respect themselves and society as a

:51:28.:51:32.

greater whole. Helping each other and the community is very important.

:51:32.:51:37.

He did a whole section, he started with Libya, and really dedicated

:51:37.:51:42.

the first bit of his speech to leadership. What did you think of

:51:42.:51:52.
:51:52.:51:54.

that? Excellent. David Cameron has an absolute Formula there. It is

:51:54.:51:58.

not... We are not about looking to others all the time to take

:51:59.:52:04.

responsibility. It is about taking responsibility ourselves, and I

:52:04.:52:07.

think that is the message David Cameron was putting out. What about

:52:07.:52:15.

you, David? Terribly impressed. I think he shows an instinct that is

:52:15.:52:21.

really important for this country. Any policy that grab you? No, the

:52:21.:52:28.

policy that was missing before was housing. I am so sorry. We have

:52:28.:52:32.

almost come to the end of our programme. I'm going to have to

:52:32.:52:36.

thank you all, thank you for rushing out, David, particularly,

:52:36.:52:42.

and I will return to Andrew. Thanks, we have William Hague, he

:52:42.:52:47.

has hot-footed it from the conference, welcomed. Thank you.

:52:47.:52:52.

Last year, the Prime Minister told us the British economy was out of

:52:52.:52:55.

the danger zone. Would it be fair to say we are back in the dangers

:52:55.:53:01.

own? No. Are triple-A credit rating was maintained this week, at a time

:53:01.:53:05.

when in other countries, credit ratings of banks and countries were

:53:05.:53:10.

being reduced I think it is fair to say that the global economic danger

:53:10.:53:15.

zone has been enlarged, but I think it would be the wrong attitude to

:53:15.:53:22.

say we are back in the danger zone. If there is a disorderly default in

:53:22.:53:26.

Greece, and the eurozone proves incapable of putting into place the

:53:26.:53:30.

necessary measures to stop the contagion, we will be swept up in

:53:30.:53:35.

that. Virtually the entire western world would be affected by that

:53:35.:53:39.

very seriously. I have often used the analogy of the burning building

:53:39.:53:44.

with no exits, but we have to support them in quenching the fire.

:53:44.:53:48.

That is what George Osborne is engaged in and he was at the

:53:48.:53:51.

finance ministers' meeting in Luxembourg last week. He has been

:53:51.:53:55.

producing some of the ideas, as well as urging them before the

:53:55.:54:02.

Cannes summit and the G20 summit, to take the necessary action. Of

:54:02.:54:06.

course it involves recapitalising the banks, making sure that the

:54:06.:54:10.

eurozone countries work closely together. If a building is burning

:54:10.:54:14.

and there is no exits, how do you put the fire out? You have to use

:54:14.:54:18.

all the resources you have got in there. You can't get the hoses in,

:54:18.:54:23.

how do you get in? It may be taking the matter for a bit too far.

:54:23.:54:28.

your metaphor. There is a serious point, there is no provision for

:54:28.:54:34.

countries to leave the euro. The eurozone is a symptom of the wider

:54:34.:54:38.

problem of debt and deficits in Western nations. Because of the

:54:38.:54:42.

eurozone is not well designed, it really shows that pressure, but it

:54:42.:54:45.

applies in the United States as well. The deficits have been too

:54:45.:54:49.

great. It applies in this country. We are dealing with that. You have

:54:49.:54:55.

seen the Prime Minister, a man who really gives the necessary

:54:55.:54:58.

leadership in dealing with it. can't give leadership to the

:54:58.:55:05.

eurozone, we are not part of it. Unlike the banking crisis in 2008,

:55:05.:55:10.

where because of London's position, we were a central part of that, we

:55:10.:55:15.

are spectators, or at best, sensible critics from the sideline.

:55:15.:55:18.

We are a bit more than that. Hopefully we are sensible critics,

:55:18.:55:23.

we are a bit more than spectators. It does involve us, and we are one

:55:23.:55:27.

of the principal players in subscribing to the International

:55:27.:55:35.

Monetary Fund. No Euro bail-outs, you said. No, but if the IMF takes

:55:35.:55:40.

action, Britain is part of that. We have since Crick -- increased our

:55:40.:55:45.

subscription to the IMF accordingly. As such a big player in the

:55:45.:55:48.

financial world, what the Chancellor says to Britain is taken

:55:48.:55:58.
:55:58.:55:59.

very seriously. It has turned out as of today that the economy is not

:55:59.:56:03.

growing. There has been no growth for nine months. Over the last year,

:56:03.:56:07.

the economy has grown. When ministers have told us the economy

:56:07.:56:11.

is growing, it turned out they were wrong. This economy, as of now, is

:56:11.:56:17.

not growing. We don't have the figures for now. We have them for

:56:17.:56:22.

the nine months to the summer. Those figures come out in the so --

:56:22.:56:28.

the future. Are you expecting them to be growing? I am sorry, over the

:56:28.:56:31.

last year, this economy has not grown, it has not grown since the

:56:31.:56:34.

end of the third quarter of last year. These figures have been

:56:34.:56:38.

revised but there has still been growth in the economy. Of course we

:56:38.:56:42.

want the economy to grow more strongly, and that is what so many

:56:42.:56:45.

of these measures are about. Look at the housing announcement that

:56:46.:56:51.

the Prime Minister referred to. 200,000 more homes, 400,000 new

:56:51.:56:55.

jobs. These are the sort of announcement necessary to help the

:56:55.:57:02.

growth, which is no, anaemic, or of expression you want to use. --

:57:02.:57:07.

which is low, Andy Nicol what ever expression you want to use. It is

:57:07.:57:17.
:57:17.:57:18.

The government is adding half a trillion pounds to its debt. One of

:57:18.:57:23.

the things we are doing is bringing government debt under control.

:57:23.:57:28.

are increasing it. It is going up because of the inheritance that we

:57:28.:57:33.

have got. Everybody has agreed that what George Osborne has announced

:57:33.:57:38.

brings down the deficit. Debt is heading for almost 1.5 trillion.

:57:38.:57:42.

That is the total stock of debt. Why do you get to borrow more and

:57:42.:57:46.

we are told to pay off credit cards? We don't have to borrow more.

:57:46.:57:53.

You are borrowing more. We are saving �85 billion from government

:57:53.:58:00.

spending, so the stock of debt will not be going up as quickly as it

:58:00.:58:03.

would on the previous plans. We are not telling people what to do with

:58:03.:58:06.

their credit cards. The Prime Minister said in his speech, people

:58:06.:58:11.

have been playing down their credit card bills. Of course, an economy

:58:11.:58:14.

that is vulnerable to high levels of debt on the personal level,

:58:14.:58:17.

company level, bank level, government level, is very

:58:17.:58:22.

vulnerable in this situation. Subdued conference, a bit worried?

:58:22.:58:30.

No, I think this is a confident The fact that the biggest argument

:58:30.:58:34.

has been over a cat shows it has been pretty successful. The party

:58:34.:58:39.

is confident but realistic. Realistic but optimistic. A

:58:39.:58:43.

realistic but optimistic speech. Thank you for being with us. That

:58:43.:58:48.

brings to an end are live coverage of the conference season on 2011 on

:58:48.:58:52.

Andrew Neil and Jo Coburn are in Manchester with live coverage of Conservative leader David Cameron's party conference speech.

There's also a lookback at the highs and lows of David Cameron's year, a film from Michael Portillo reviewing the year and a sketch from Quentin Letts.