03/02/2012 Daily Politics


Similar Content

Browse content similar to 03/02/2012. Check below for episodes and series from the same categories and more!



We have concluded there is sufficient evidence to bring


criminal charges against both Mr Huhne and Ms Pryce for perverting


Afternoon, folks, welcome to the Daily Politics. Chris Huhne and his


ex-wife have been charged with perverting the course of justice


over a nine-year-old speeding offence. Mr hymn denies the charge


but has resigned from the Cabinet to fight his case. -- Huhne. He


clashed with David Cameron and other Tories more than once across


the Cabinet table, now he has gone and a reshuffle is under way. It


looks like David Cameron has issued a wider reshuffle, making it a Lib


Dem affair. Nick Clegg has returned to Westminster could to consider


Over the next 60 minutes, we will analyse the political fall-out from


the dramatic developments and bring you the latest on what we will now


call the Clegg cabinet reshuffle. With me for the duration, Rachel


Sylvester of the Times and Medhi Hasan of the New Statesman. Now, it


has been a long time coming, but this morning at 9am Energy


Secretary Chris Huhne was told by the Crown Prosecution Service that,


along with his ex-wife, Vicky Pryce, he was to be charged with


perverting the course of justice. The crime carries a jail sentence.


The CPS has concluded that Mr Owen did have his wife take the speeding


points that he had incurred driving to London from Stansted airport one


night in 2003. Ms Pryce is charged with being complicit. Mr Huhne has


resigned from the Cabinet. Ms Pryce has said nothing about her guilt or


innocence but is spending time with her family. The events unfolded


when, at 10am, Keir Starmer, the Director of Public Prosecutions,


took the unusual step of making a public statement to explain the


decision. All the available evidence, including that, has now


been carefully considered by the CPS. And we have concluded that


there is sufficient evidence to bring criminal charges against both


Mr Huhne and Ms Pryce for perverting the course of justice.


The essence of the charges is that, between March and May 2003, Mr


Huhne, having allegedly committed a speeding offence, falsely informed


the investigating authorities that Ms Pryce was the driver of the


vehicle in question, and she falsely accepted that she was the


driver. Accordingly, summonses against both parties have been


obtained from Westminster magistrates court, and those


summonses will now be served upon them. They are due to appear in


court on the 16th February this Within the hour, a defiant Mr in-


off made his resignation statement from outside his home in central


London. -- Mr Wood. I have a short statement. The CPS decision today


is deeply regrettable. An innocent of these charges, and I intend to


fight this in the courts, and I am confident that a jury will agree.


So has to avoid any distraction to either my official duties for my


trial defence, I am standing down, resigning as energy and Climate


Change Secretary. I will, of course, continue to serve my constituents


in Eastleigh. Thank you, that is all I want to say today. And that


was all he did say. His ex-wife, So that is the statements of the


two people who have been charged. We are joined by Lembit Opik and


the editor of the liberal magazine. Let me come to you first, give me


your initial reaction to these events. I think it was expected by


of the Liberal Democrats. Chris Huhne is one of the first Lib Dem


Cabinet ministers since the war, these five Cabinet ministers, and


they have lost Jay already in less than two years. That is not good


for the Liberal Democrats. For Chris Huhne, it is a personal


tragedy, because he was an ambitious man, a high-flyer.


Regardless of the outcome of the court case, it is difficult to see


him coming back to frontline politics. He was on the verge of


leading his party. Something that he actually won the election.


to the personal tragedy of this. This was a speeding offence, not


personal corruption, money in brown envelopes or ministerial


incompetence. The view is that he was a pretty good minister, and it


is a real shame he has had to stand down over something so long ago


that seems so minor. It is the Watergate principle, not the actual


original crime or offence that is the issue. It is, quote, the cover


up, which the CPS think there has been. No, exactly, it is very sad


for him, and I think you're right that it is bad for the Liberal


Democrats. He was a strong voice for them in the Cabinet, and


putting them on to the backbenches, they will feel one of their biggest


Representatives has gone. Emma may not be a bad thing for the earth --


it may not be a bad thing for the Liberal Democrats, I will explain


why in a minute. There is a political dynamic it, a public


dynamic and a legal one. The still innocent until proven guilty, and


it is dangerous for us to give the impression that he has been found


guilty. We are not doing that. just emphasising that. Let's get to


the politics of it, I want to talk about the politics. The people can


see the difference between what has happened to Chris Huhne as an


individual and the party as a whole. Lib Dems have got all kinds of


problems, but this is not one of them. What will it do to the Lib


Dems? It could lead to readjustment. If he is found innocent, he becomes


a different powerbase within the party. That could be an interesting


dynamic between him and Nick Clegg. To be found innocent, in a sense,


is Nick Clegg's worst political nightmare, because Mr Huhne then


goes to the backbenches, remains MP for Eastleigh, and he becomes the


rallying cry for the 8th Left opposition inside the party to the


coalition. I would say it has been hit by a day for the Liberal


Democrats because he headed what is possibly the most successful


ministerial party -- ministerial role for the party, which is key to


the grassroots. If he comes back, he will be a figurehead for


opposition at the left of the party. What he secured at the ministry was


considerable, a pledge against many of the protests of the


Conservatives to cut emissions by half by 2025. That really does


appeal to left-leaning Lib Dem grass roots. It is why the Tories


are very happy this morning. They are happy, and that is why Nick


Clegg is concerned, because further to what you said, if he is


acquitted, he will be a figurehead of dissent. I think there is a


danger of exaggerating his left the nest. He would say that of most


people! I would say especially about Chris Huhne, because I was


sympathetic to him before the election. In the coalition


negotiations, talk to the Labour members, he was one of the most


zealous advocates of a coalition with the Tories. He did a joint


press conference with the Tories, a party political conference in 2010


attacking Labour, and a lot of people who thought of him as a


fellow traveller thought, wait a minute, he has gone native, too! He


has made lots of noises about AV. Is a very savvy politician. He is a


pragmatist and very ambitious. If he gets cleared, the existing


leadership is going to be very concerned. Their minds they are


both part of the Orange Book corpus, the caucus that runs the party, so


I do not think they are very different politically, but he is


very ambitious, and it is a nightmare coming home to roost it


is and isn't. There is no love lost between Mr Huhne and Mr Clegg. He


depicted him as A calamity Clegg during the leadership campaign, and


Mr Clegg made jokes about there being nobody better than him for


getting his points over. They were rivals for the leadership. I was


there when he said it! They were friends and rivals in the European


Parliament, then they were friends and rivals in parliament, rivals


for the leadership, but since then they have served in the cabinets


together, and if anything, Chris Huhne has been standing up more to


David Cameron than to Nick Clegg. That is where the rivalry has


developed. The smallest of violins will be being played in Number Ten,


let's be honest, they did not like Mr Huhne. They like Ed Davey, who


is being tipped as his replacement. Chris Huhne was a contributor to


the Orange Book. So was Vince Cable! It was quite a broad colour.


He is not seen as an honorary camera and, as Ed Davey is. This


David Laws comes back, that is good for George Osborne and David


Cameron. They will be pleased by that. You say it is not bad for the


Lib Dems, but the point that you have got five Cabinet ministers for


the first time since Lloyd George out of war. And you have lost 40%


of them! As I say in my book, which comes out at the end of the month,


it allows me to analyse this. The loss of David Laws was catastrophic


in the sense that he was the architect of the Orange Book


corkers. He is an Orange Book person. He basically designed it.


So why is it not a disaster? With Chris Huhne, he was not the


architect, as you have said. He was not seen as the core progenitor of


the Orange Book. That does not mean, you have lost 40% of your Cabinet


ministers, and you have not had any since Lloyd George! If the Lib Dems


strategy is all about differentiation, you lose the best


advocates of that in the Cabinet. No problem making himself ethernet


-- a different at the Cabinet table! That is the underlying


problem that the party has, a lack of differentiation. You are close


to the grassroots, you have got this magazine and all the rest of


it. How do you think this will play? I think that many grassroots


members will be disappointed that such a key post, environment, one


of the few where the Lib Dems seem to have stood up, drew a line, and


they were getting... I mean, in terms of fighting with George


Osborne, as Chris Huhne was what to do on economic issues, saying we


are not going to allow environmental targets to be watered


down because of the economic crisis, this was a real line in the sand,


and when the Lib Dems have given up so much, VAT, tuition fees,


spending cuts, all of that, I think that this is not the final straw,


but it is totemic for the party. I think many grassroots will be very


upset. A bad day for windmill manufactures! We will have a


moment's silence for them. Not very silent, we will just move on. How


will the news changed the composition of the government? As


you have heard, Chris Huhne has exited stage left for now. The


rumour mill suggests he will be replaced as Secretary of State for


Energy and climate change by this man, Ed Davey, the MP for Kingston


and Surbiton in London. He is currently a junior minister in the


Department for business with responsibility for employment


relations and consumer affairs. Speculation is that if Mr Davey is


promoted, his portfolio will go to Norman Lamb, Nick Clegg's


parliamentary private secretary and chief political adviser, very close


to Mr Clegg. And if he does move into that official government job,


some people in the village are suggesting that his new


parliamentary aide could be, well, a familiar face! Yes, David Laws,


who was the last Lib Dem to resign from the Cabinet. We are joined now


by Adam Fleming. The Cabinet reshuffle is still being cooked,


but my sense is that it is actually done and dusted and just needs to


be announced. They have quite cleverly, Mr Cameron and Mr Clegg,


let the media know what is going to happen. This is one we baked


earlier, that is what they are telling us. Yes, a prix BECTA


reshuffle, that is the hint that is being dropped behind the scenes. A


huge frenzy are speculation about how the reshuffle will work out,


but speculation much more limited than it used to be in the old days


of 2005, when you have one party in government. The issue is now, with


coalition, there is a deal about how many cabinet ministers each


party gets around the top table of government. As our guests have been


saying, the Liberal Democrats get five, so that means today's


reshuffle is limited to Liberal Democrats only. In the past, the


Prime Minister would have been able to pick and choose who we wanted


and put people into positions. As you said, the speculation this


morning is that Ed Davey, the junior business minister, will step


up to join the Cabinet to take over from Chris Huhne, which means that


Norman Lamb, a close adviser of Nick Clegg, will take that job,


working with Vince Cable in the business department. As he said,


the big question mark over David Laws, is he going to get his chance


to return to government after he had to quit just three weeks into


It is interesting to look back at what happened when Liam Fox quit


last year. It was a Tory any reshuffle with the movement of Tory


ministers and junior ministers and nothing wider than that. This is


new for us and is a consequence of coalition government that the


decision by David Cameron not to have a wide-ranging reshuffle but


too narrow the damage, it means in effect it is not a Cameron


reshuffle, it is a Clegg reshuffle. We expect Nick Clegg to make a


statement in the next half an hour so we will hopefully be able to get


it live on the programme. There is speculation about whether he will


use that statement finance these new ministerial appointments. Will


the Prime Minister announced the appointments from Downing Street? I


suspect it will be Nick Clegg. The whole thing behind the scenes is


that the parties covered up between themselves. It is not like the old


days when the whole Cabinet would be moved around. We had problems


when Tony Blair did it. We are always being told by sources close


to David Cameron behind the scenes that he is not a big fan of


reshuffles, having seen how they go disastrously wrong. We are told he


does not want to have a big revamp of the Cabinet in his first couple


of years. If the reshuffle happens while we are on air, we will bring


it to live. They have handled this quite well, have they not? They put


in place the pan to make it seem less. Mr Clegg would make -- take


the initiative. What is fascinating is how coalition is limiting


reshuffles. You're not getting huge shake-up so of the Government.


There have been a lot of mutterings within Number 10 about people not


liking Ken Clarke or Andrew and spree. If it were not a coalition


government, you would have had a much wider reshuffle with people


from all departments. Because it is a coalition, room is limited.


have three Cabinet ministers who have gone. All went for personal


problems. None of them have gone for policy. The real resignation is


they Andrew Lansley resignation. Why do you think that? Will he


resign or will he be kicked out? will be asked to resign, I suspect,


before the end of the year. That is the big one. That will be about


government policy. If the reports are right, they have chosen not to


do the wider reshuffle which has been discussed, at this point.


will it play outside this Westminster village to the idea?


People are quite sensitive about this. Chris Huhne has to resign


because there are criminal charges against him. As part of the


reshuffle that follows, if you bring back David Laws, who had to


resign because of malpractice with his expenses. Plain folk will think,


how does that work? It does not play well at all. Nick Clegg wanted


to bring back David Laws much sooner. It is interesting with the


introduction of a Davies. He is very loyal to the circle of Nick


Clegg. He is a curiously modern politician. He does not stick his


ideological colours to the mask. Many people are curious about where


he stands on many things. He moves in a circle with performers. It is


not sure where he will be. It was catastrophic you had the architect


thrown out for whatever reason. Bringing him back may be costly in


public relations but it is important strategically. If there


is one thing that will harm the Lib Dems, it is the feeling that


something bad has happened in the party. You are all referring to the


Orange Book. That was written by a number of senior Liberals. It was


called the Orange but because it was coloured orange and it was


liberals who tended to come from more market orientated than


collectivist wing. I have a book. It is by my bed, particularly when


I cannot get to sleep. I use it quite a lot. It is an interesting


book. The Treasury was beginning to take on climate change policies. Mr


Osborne referred to that at the Tory conference, in his speech.


Behind the scenes there have been even more. Mr Hume was a strong


figure in his own right, he was across his brood -- breach. During


the baby referendum, there was the infamous moment when Chris Huhne


asked if he would resign. Areas that personal link. I think the


Treasury made it clear in its conference. They were under


pressure from the Daily Mail wing of the media. There were barriers


to growth. Get rid of the factions. Will he stand up to that? He was


therefore a -- he was there from the start. It does not seem to be a


big issue. How will it go down if, as he may be entitled, he gets


�17,000 in redundancy for leaving the Cabinet? That is not a big


issue. Do you think he should take it? Politicians have been there a


keen to get Mr Heston not take his bonus. Chris Huhne, like David Laws,


has a reputation problem. He has nine houses, or conveniently priced


under 2 million. David Laws, as an ex banker, they have our


expectation issues. If the Liberal -- bear our expectation issues. If


the Liberal Democrats were to use - - lose this along with other


policies and ideological points they had given in, political and


ecological, I do think there will be problems. Nick Clegg has to bear


that in mind. Maybe by bringing David Laws in, it will strengthen


him. They are super loyal. He is stronger now but for the reasons


you have just said. If the environment begins to slip off the


agenda, the Lib Dems will have trouble at the back of the ranch


quite even if the public is not so concerned about that. Should he


have resigned? What would he have been designing for? He is claiming


his innocence. We will find out in a few weeks' time what happens.


Should he have resigned the England captaincy? It is the same. He has


had to resign for something that was off-pitch. It has the strange


and agree. A good day for Ed Miliband to do a speech. Eastleigh


is the constituency that Chris Huhne represents on the south coast


of England. It looks on to the Isle of Wight, which touches the sea. He


has shied of just 20,000 votes. The Conservative have just over 21,000


votes. There was a majority of 4000. The Labour vote was clearly squeeze


because Labour people voted for Chris Huhne, to keep out the Tories.


There would have to be a by- election if he is found guilty.


he is found guilty, the game is up for him. He is the first Cabinet


minister in more than 200 years to be charged with a criminal offence.


I read back somewhere. You need to be lucky in politics. Chris Huhne


only narrowly lost in the battle to lead the party. He might have been


Deputy Prime Minister but for a few votes in the leadership election.


It would be a global story today if it were the Deputy Prime Minister


facing criminal charges having to resign. Instead it is the Energy


Secretary. His political career is potentially in tatters. It has


certainly changed. Now we look back at the Korea. He has been a


journalist and an MEP. He is a millionaire and reported --


reportedly the owner of eight properties. He is the second Lib


Dem to leave the Cabinet. He won Eastleigh in Hampshire for the Lib


Dems in the 2005 general election. He ran for the leadership of his


party, losing out to Menzies Campbell. A year after that he lost


out to Nick Clegg - just - in a further leadership contest, which


became fairly bad-tempered. Why had he issued a briefing document


called Calamity Clegg? I have not. This came from your office on


Friday to the Politics Show. I am sorry. I did not see it. Do not


know what goes out of your office? It is impossible to check


everything that goes out of the office. It is a large campaign


going right the way across the country. It has not had my


authorisation. He was authorised to negotiate the coalition agreement


with the Tories. The climate change Secretary was one of five Lib Dems


in the Cabinet. He often caused tension around the table,


especially during the referendum on changing the voting system when he


confronted the Prime Minister over the conduct of the no campaign.


have never come across an election campaign of this nature in all my


years involved in campaigning back to the early 1980s, where we have


had and -- a repeated untruth may buy the other side in this way. It


is a new low in British politics. At the same time his family life


became big news. His marriage to Bickley price collapsed, leading to


the claims about speeding. He said he was in a new relationship with


his press adviser, who was seen by his side on election night. What


was personal became deeply political. We're joined now from


Salford by the Lib Dem MEP Chris Davies who worked side by side with


Chris Huhne for many years in the European parliament. He was


returning from the European Parliament on the fateful night


when the speeding took place and the whole argument about who took


the points has led to today's events. Chris Huhne is very smart.


He is tough, he is a fighter. How will he be feeling this morning?


How would you feel? I would be devastated. Absolutely. I do not


think he can be anything other than that. It is not just one career


that has been hugely damaged, it is the key price as well. She is a


hugely talented woman was that they have both been brought down by this.


Was he popular among Lib Dems question that he had an ability to


rub people up the wrong way. -- among Lib Dems? The vast majority


of MEPs voted for Nick Clegg. That is not because they thought Chris


Huhne had less ability. He does have an ability to rub people up


the wrong way. He is very self- confident, very ambitious. He is


pugnacious. Less easy to have dinner with. If you look at the


coalition post, let's assume the stuff we are being fed by the


Government machine is accurate, it may not be but we are being fed it.


It is Ed Davey, Norman Lamb and David Laws coming in almost as a


political adviser to Nick Clegg. Does it change the coalition very


much? I do not think it changes the policy in any sense. I doubt


whether we will find anyone around the Cabinet table laying down his


fist right -- quite in the way that Chris Huhne has done. Many Liberal


Democrats like the idea we have a minister who is prepared to blow


his top and let off a jet of steam in the direction of the


Conservatives from time to time. One bigger thing which is not being


looked at the moment is his role on the European stage. He has just


come from the climate change conference in Durban. They managed


to bring in India and China into what we hope will prove the next


stage of aggressive climate change negotiations, leading to a binding


treaty. He will be sorely missed among climate change people. Chris


Huhne is not personally popular among Lib Dem activists... No, no,


he almost beat Nick Clegg so you cannot say that. A bit like going


back to the old days, he is the Pardoe and Nick Clegg is the David


Steel. My emphasis was about personal popularity. He stood for


policies that were popular with Lib Dem at this and they will regret


his departure. I do not think you could put a paper between Nick


Clegg and Chris Huhne when it comes to policy. It is style. I am sure


you know that, behind the scenes, Nick Clegg is doing an incredible


job in dealing with the whole work of government, trying to make sure


that Liberal Democrats can live with what is coming out of a


coalition where we are outnumbered four to one. It is a difference in


style. You seek Nick Clegg on the green benches trying to keep his


face expressionless when the Prime Minister is saying this or that.


Chris Huhne has a harder job at doing that. Liberal Democrat


activist do not feel cut well being in coalition with the Conservatives.


That is a fact of life. You say you cannot put a cigarette paper


between the two on policy. You're not trying to tell us we're bosom


No, and that rivalry became better during the leadership contest. It


goes back further than that. Chris is ambitious and self-confident and


pushy, and that is what you wanted a minister, I do not deny that by


second, but remember that Chris, after he had only been in


Parliament for a year or two, stood against Ming Campbell to be leader.


Nick Clegg could have done so, too, but he thought they had an


arrangement not to do it. You know, there is no question that Chris is


capable of running Nick Clegg up the wrong way, and yet I suspect


that not for a second would Nick have wanted this to happen. He


wanted Chris Huhne alongside him, because he added to the team.


to see Salford so resplendent behind you there! What you make of


that? Suspect, in a scheme of things, obviously a Lib Dem leader


does not want resignations from his ranks, but as Lembit Opik pointed


out, it is good for Nick Clegg in the long run. It strengthens his


and Borders. There is no challenger to his leadership now. -- his


supporters. Even outside of the Cabinet, Tim Farron is not a


serious challenger. If he is found innocent, returns to the


backbenches and become a lightning rod for the Social Liberals, it


could be a problem. At the moment, Clegg is secured and the


relationship in cabinet his mother. Clegg himself is now trying to


differentiate more than the Conservatives, and it would have


helped him to have more differentiate us alongside him,


which Chris Huhne would have been. We will return to that story later


in the programme, particularly if we get the Clegg cabinet reshuffle,


as we are calling it, but Stephen Hester turned down his bonus, Fred


Goodwin lost his knighthood, but for Ed Miliband this is only the


start. He wants to see wholesale reform of the banking system. He


calls it responsible capitalism. And that was is the money spoke to


an audience in the City of London this morning. -- his theme when he


spoke. In my view, we need to learn the most important lesson of this


week, which is that the banking sector cannot be divorced from the


rest of the economy and the rest of society. As a country, we succeed


or fail together. It is not about the politics of envy. It is about a


culture of responsibility. It is why we need what I call one-nation


banking in this country. So this is a call for banking to recognise


that continuing on its current path will lead to further isolation from


society, greater public anger and more years in which banking is a


subject of lurid newspaper headlines. This is a call on


banking to recognise that it needs to find a different path. To


recognise, above all, it is not isolated from the economy or


society, to recognise that we succeed or fail to get up. We are


joined now by Labour's shadow Business Secretary, Chuka Umunna,


who joins me from Berlin with the Brandenburg gate behind him, it


looks almost as nice as Salford! Your leader says... Hi, Andrew, it


is very cold here, I can tell you! Mr Miliband says banks cannot be


isolated, segregated economically, geographically and socially. Isn't


that what happened under the Blair- Browne years? Well, look, we have


had issues grow with our financial services sector of the last three


decades, but the question is how you reform and change it. The point


that Ed was making is that we depend on each other in the sense


of, of course, the financial services sector benefits from an


implicit tax they guarantee, it relies on society to provide it


with the talent and skills to run our big banks, but also we rely on


it not just to provide a social utility function, which is


important to us as individuals, somewhere we can store harmonies,


but also our small and medium-sized businesses are massively reliant on


financial services for funding. That is one of the reasons I am


here in Germany, to find out how the banking sector here, among


other things, supports their small and medium-sized businesses here,


and I think there's quite a lot we can learn, in particular from the


savings banksia, which have a much better, if you like, relationship


with their businesses. The people here, their business and banking


structure is very low court in its native. The people running local


banks get to know the businesses. They are any good position to


assess risk and provide support. We have not seen that so much in the


UK. This is part of the overall transformation that we need to see


so that the sector does what we need to do but also so that we can


re-establish trust in it, because that is very important. You are


treading a well-trodden path. Labour politicians have been going


to Germany to study that since Hugh Gaitskell, and you were not even a


glint in your father's eye when he was around! Are you really saying


there is any possibility that a Labour government is going to


promise to bring in the German system of supervisory boards and


floorboards and so on? A total revolution in corporate board


structure? It may be right or wrong, but is there any possibility what


promised to do that? Well, we have already said... Well, what we need


to do is look at the international examples of good practice that have


worked and then work out, figure out how to transpose that where


appropriate to a UK context. We have not only be looking at Germany.


I was in the United States, looking at the Small Business


Administration in particular, the small business investment company


scheme, which gets money going to businesses over there. We have also


been to Singapore, too. If you look at the current debate on executive


pay and remuneration, one of the things that they do here which we


have suggested and can be quite easily implemented in the UK is to


have an employee on the remuneration committees of boards


which set pay. John Lewis have that kind of model in their business. I


would not say that it is a case that we can just take things in


Germany or the US and literally implant it exactly the same in the


same form in the UK, but we can take the principles, we can look at


how they do things and how we could transpose those across to a UK


setting, which is more appropriate to us. But what is clear that after


the crash, the status quo is not good enough for the country and our


businesses. We have not got too much time, and I want to move on.


Mr Miliband said that MPs, he will ask MPs to end on the bonus culture,


and it will not be legislation, it will not be binding. In other words,


it is just grandstanding. I do nothing that is fair at all,


because look, there has obviously been a very big public debate that


has occurred over the last couple of weeks, and really Parliament has


not had a chance on behalf of the people... The reason that


politicians have been talking about excessive pay and rewards for


failure is because, Andrew, people raise it with us all the time in


the constituencies. This is a chance for us to give life to the


debate that is happening outside Parliament so that it is inside


Parliament and Parliament can express a view. That is part of our


constitutional function. Will you call a debate for Bob Diamond's


bonus at Barclays? No, because this is not about a fatwa against... It


is not an aim to go against a particular individuals. He went


against Mr Hester, why not Bob Diamond? His bonus will be 10 times


bigger! Yes, and of course this is one of the reasons that the vote


will be about the reintroduction of a bank bonus tax, which will impact


on people like Mr Diamond and many others who are earning very large


sums of money in the financial services sector at the same time as


performances falling. What about... As I said... Andrew, as I said the


purpose... There is going to be a RBS bonus pool of �500 million.


That is about to be paid out, and it does not include Stephen Hester.


Mr Hester is not the best-paid person at RBS, there are several


people paid much more than him. What is Labour going to do about


that? When you call a vote in a house on that? Well, the vote is on


the reintroduction of the bank bonus tax, at the bank bonus tax


applies to the bonus pools in the different banks, so that would


impact on all the people that you have just spoken about. OK, but I


see that is not a vote. Thank you for joining us from Berlin. Well,


it is a vote, as I said. Your reaction to Mr Wood's resignation.


Well, of course, it is regrettable for him, but it is very important


that the course of justice is allowed to follow this course, and


I do not think it would be proper for me to comment on the


particulars of the case now that a full criminal legal proceeding is


in process. What is important is that justice is done and seen to be


done, and that well before the courts to decide in terms of they


will make findings of fact and make a decision and judgment upon that.


D-pawn in Berlin, keep your coat on when you get back here, because I'm


not sure you will notice much of a difference! We have got Eastern


European temperatures here at the moment. Thank you for joining us.


While we were speaking to the Chateau Business Secretary, we


learnt that Ed Davey IS the new Energy Secretary. We caught for a


second that Mr Clegg was going to make an announcement that. It is


confirmed, yes, the DPM coming out. This is his Cabinet reshuffle, and


it is going to be limited to Lib Dems. The Prime Minister deciding


not to have a wider one. understand and respect why Chris


Huhne has stood down from his position in government to clear his


name. Chris Huhne is a good friend and a close colleague writing has


done an outstanding job as a Secretary of State for the


Environment, for energy and climate change. He has really been a


pioneer in ground-breaking policies which I believe will stand the test


of time, and if he clears his name, as he wishes to, I have made it


clear to him that I would like to see him back in government in a key


position. I am pleased that Ed Davey has agreed to take up the


post as the new Secretary of State for Energy and Climate Change. Ed


As a lifelong commitment to the environment, to green issues. He


has shown as a minister a formidable grasp of the details of


government policy, and I think he is the right man for the job, to


take up from where Chris has left off, to provide sustainable


solutions to the long-term energy needs of this country. And I will


be meeting Ed shortly so that he can make an early start in that


very important work. Thanks very OK, a short statement there. That


looks like Admiralty House, was it not? It was not Downing Street that


he was in. I think that is where it was, just off Whitehall. He is


being followed in by some schoolchildren, looking for a job!


So the Ed Davey announcement, we would get the others very shortly,


but we can confirm that Ed Davey is the new Energy Secretary. I want to


come back to Chuka Umunna in a minute, but let's just stick with


this story as it develops. It is interesting that Nick Clegg, whose


back really was against the wall as his coalition began to find its


feet, and he was deeply unpopular, even unpopular in Sheffield, he has


emerged from this and other developments in a pretty


unassailable position. It is in a very strong personal position.


Whether Lib Dems strategy at the next election is helped by losing


Huhne is a different question, but doing things like that helps.


Coming out and announcing things, very grand, very strong, it is a


new age of coalition politics, how often you see a DPM career at a


reshuffle which is the prerogative of the Prime Minister under our


system? It is new for us! It is interesting that he said he would


like to see him come back to a key position. David Cameron, in his


letter, hold that out in the same way that he did to David Laws.


the way it works, if it turns out he is not guilty, he keeps his seat,


he goes on to the backbenchers, but he cannot be brought back under the


system unless you make room for him, because all the positions will be


taken. And we would have another reshuffle, which is why David Laws


has had to wait of his time. Get in line behind David Laws! Just to


confirm that the Queen has been pleased to approve the following


ministerial appointments, we are being told, Ed Davey is to become


the new Secretary of State for Energy and Climate Change, taking


over from Chris Huhne. Norman Lamb, as was widely leaked, is to become


a parliamentary Under-Secretary of State at the Department for


business, taking over the Ed Davey position. But Jenny Willott is to


become an assistant government whip, I am not sure of the significance


of that. But no word of David Laws taking the Norman Lamb... And not


sure if Jenny Willott is taking the Norman Lamb position or the David


Laws is still under way. The Queen would not sign off on a PPS


position for Nick Clegg. We already knew all of this. You think this of


elite from Buckingham Palace? I think you might be right! The what


is interesting, of course, on a side note, still no diversity in


the Cabinet. We have got another male Cabinet minister because the


Lib Dems do not have many women to offer, let alone a non-white faces.


The Lib Dem contingent is still The more they talk about diversity,


the less diverse they seem to be. Labour clearly thinks it is on to a


winner with the bonus business. I get the impression they are not


entirely sure where to go from here. Ed Miliband has made all the


running. He'd told to about moral capitalism in his conference speech


was up he had the prejudice discussions in his speech at


conference. He is not getting any credit. It is partly because


somehow Labour has not come up with a policy that really cuts through -


an idea that exemplified this better than either of the other


parties. The most memorable thing in all of this has been stripping


Fred the Shed of his knighthood. It cuts through. People notice. It is


symbolic. The bonus tax is very important. Labour brought in as a


temporary one-year tax. It was the most popular thing Gordon Brown


ever did. This government got rid of it. Bonuses are not going of way


in this Parliament. You mentioned RBS. He will get a bonus of �6


million was that he is in the investment banking division at RBS.


The ailing investment banking division! If Chuka Umunna is


willing to go on about bankers, that is a big issue. People are


very angry about the crisis. how which you rate the Labour


performance on this to date? Perhaps the timing of Ed Miliband


and his speech is a problem. They have stopped and started the stock


when Ilott -- when Ed Miliband picks on an issue they like, he


seems to lose momentum and David Cameron squads on that ground.


Banking is not the territory that David Cameron wants to be on. He is


not going to support employees on remuneration committees. That is


why Labour should keep going on about it. It is a live issue. Pick


one or two issues. Sticks to that. You will not get hurt -- heard on


anything else. We are in a breaking news situation. Vince Cable has


something to say on the events this morning. I am very sad. He is very


good and very effective as a colleague in government. I'm sure


he will clear his name and we would like to see him back. Do you think


he will come back? It is not for me to comment on legal processes. He


has been a good colleague and achieved a great deal. He has been


an effective member of the coalition. What effect has this had


on the party and the coalition? have strength in depth. We have


other colleagues who will step up to the plate. It is a tragedy for


him. Will feel for him and wish him luck. What has can he say?


thing the Liberal Democrats do not have his strength in depth. That is


shown in the reshuffles at the moment with the ministers they have


in government. It was either going to be a Davey or Jeremy Brown. We


He still thought he had Enrique to be leader of the Lib Dems. Chris


Huhne has been sidelined for the foreseeable future. It is quite


good for Vince Cable, is it not? A mite too Machiavellian? I think it


is better for the younger generation. -- am I to


Machiavellian? It is great for David. He is the younger generation.


If Nick Clegg were to fall under a bus tomorrow, he would be in prime


position to as a young, dynamic Cabinet minister doing climate


change. It did not hand -- hamper Ed Miliband doing that portfolio.


The central issue there still faces this country is the economy. Almost


everything has been tried by his coalition. We have had the lowest


interest rate on record. Quantitative easing and the


devaluation of the pound. We are running a budget deficit. We're


heading for 1.5 trillion pounds in debt and there is still no growth.


In programmes like this, we talk about the knighthood of Fred the


Shed. This is the problem for Ed Miliband that he has not got


credibility on the economy. He has not moved on on the deficit. All


this talk of bonuses and responsible capitalism, unless he


can get back creditability on that, he will not win. I think, come 2015,


he will be in a very good position to do a Ronald Reagan saying, do


you feel better off? What have this block given you? For the Lib Dems,


people have gone on for ages and nothing has changed. I met Ronald


Reagan. I do not seek Ed Miliband as being like Ronald Reagan.


invaded Grenada. That was a good recollection. It has been a busy


week in politics. Time to look back at the other big stories of the


last seven days. The week started badly for Stephen Hester, the chief


executive of RBS was almost �1 million poorer after bowing to


pressure and giving up his bonus. He was faring better than his


predecessor, who is now plain old Fred Goodwin, after his knighthood


were shredded after his role in the collapse of RBS. On Tuesday,


Theresa May also lost something on Downing Street. Last year David


Cameron threatened to stop other European countries from using EU


institutions like its court to force the treaty to be vetoed. On


Monday he appeared to back down, prompting some to ask what the


point of the veto was in the first place. With this Prime Minister,


veto is not for life, it is just for Christmas. Meanwhile, it was


back to school for Michael Gove. He was their well-behaved in the


Commons Education Select Committee. Will you excuse me for a second?


There we go. A middling Cabinet reshuffle and not a word from the


Prime Minister. Coalition politics is very different from what went


before. It enabled him to do other things, having a Deputy Prime


Minister. If he wants to watch what happens in coalition politics, it


is Borgen. That is about running a coalition. Let's get back to the


politics of it. It has been a dreadful time for Ed Miliband. He


is regarded by his own side as having terrible performances in the


Commons was up his brother will not shut up. He keeps writing articles.


Are we seeing a turning point? He has not had won a good week, he has


two of bid weeks. -- one. He seems to be saying the right things but


the message is not getting through. Is a person who can get through to


the voters? That is called the big test. Will people seriously


consider him on the steps of Number 10? It is hard to do anything about


that. Is it a danger that he is in a position where people were


presented with a set of policies and they rather like the policies


and then they were told, they were Conservative policies, and they


were not so sure. That is a problem. It is the case when it is put to


people. Labour were in office for 13 years. They left to and were


unpopular. That is hard to shake off in 21 months. The leader is


trying to bring the party back to government in one term. No party


leader has ever done that. It is a big challenge. Do people see him on


the steps of Downing Street? Only time will tell. It is easier for


him than William Hague and Michael Howard. He has a lot less MPs. He


is up against the most elect jury of -- electorally unsuccessful


Prime Minister. The attention of the media is in the dynamics of the


coalition. We will see how that holds up we are back into double-


dip recession. I suspect again, the economic message will be less easy


for the coalition to blame Labour and said his all the fault of the


Labour Party, as we get further away from 2010. It was because Nick


Clegg was seen to veto in Europe. I tried to get Michael Portillo last


night to tell me what this veto a man to two. I'm still waiting to


hear. That made do some damage. -- amounted to. It may be wishful


thinking on your part, Army at a turning point? Is the worst over


Port Edgar Miliband? -- are we at a turning point? I think they have


their ups and downs. If the election is in May, 2015, will Ed


Miliband have had a long enough period of quiet? We talked about


the intervention of David Miliband in the New Statesman yesterday.


That is an important part of British politics and leadership.


Nick Clegg is feeling more comfortable with his position,


which we think he is, and if Ed Davey is less abrasive than Chris


Huhne, what has happened - personal tragedy for Chris Huhne - may be


quite good... It may smooths the dynamics of the coalition. If it is


hard to see the coalition breaking up before 2015. I think it will


last the course. It is not in the interests of either party to end it


when the economic uncertainty is so great at the moment. How it clear


they would want the economy to be improving. We will leave it there


on a Daily Politics on the morning where Chris Huhne has resigned as


energy secretary after the Crown Prosecution Service announced that


he was to be charged over the speeding points. The Crown


Prosecution Service that concluding after its investigation it would be


their case against him that he did get his wife to take his speeding


points and thereby not lose his licence. Chris Huhne will fight


that all away. When the trial starts, you will hear it first on


Download Subtitles