05/09/2012 Daily Politics


05/09/2012

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Morning, folks. This is the Daily Politics. Today's top story:

:00:40.:00:42.

As David Cameron puts the finishing touches to his Government reshuffle,

:00:42.:00:45.

the Mayor of London Boris Johnson spoils the party, claiming the PM

:00:45.:00:49.

is preparing to ditch his promise not to build a third runway at

:00:49.:00:55.

Heathrow. Deputy PM Nick Clegg is keen to

:00:55.:00:59.

show off his latest recruit. Former Minister David Laws returns as

:00:59.:01:03.

Schools Minister. But as a Tory MP says the reshuffle marks the start

:01:03.:01:06.

of a divorce in the coalition, are the Lib Dems strengthened or

:01:06.:01:11.

weakened? After an eight-week break, Prime

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Ministers Questions returns. We'll have all the cheers, jeers and

:01:16.:01:21.

tears live from noon. And should British politicians take

:01:21.:01:23.

a leaf out of the American political playbook and push their

:01:24.:01:31.

wives - or husbands - into the limelight? Iraq knows what it means

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when a family struggles. He knows what it means to want something

:01:35.:01:40.

more for your kids and grandkids. Barack knows the American dream

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because he's lived it. All that to come before 1.00pm, and

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with us for the duration the brand new Conservative Party Chairman

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Grant Shapps and Shadow Chief Secretary to the Treasury Labour's

:01:52.:02:02.
:02:02.:02:03.

Rachel Reeves. Welcome to the Daily Politics. Before we get started,

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let's get something out of the way. We hear that wee Grant here has a

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bit of a problem. He doesn't like wearing ties, which is a bit of an

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issue for a politician. Apparently Mr Shapps hates them so much he

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spends as little as possible on them. This one cost �4? Yes, but

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Marks & Spencer's objected and said it was �5. On the Daily Politics we

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have noticed you're going for quite shiny ties - I don't want to say

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too shiny so we think you should go in for a new look in your new job.

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So how about these that we have rustled up here? Which camera is on

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here? That's very patriotic. have this one here for you.

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these yours, Andrew? Less of your heckling. Then we have another one

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- London too - little guards in a box at Buckingham Palace. That's

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also very nice, part of the era, and this, of course, is from my

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hometown, the world famous paisley pattern, which I think we nicked

:03:12.:03:19.

from somewhere in India, Raj Stan in the 19th century. A bit of

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history there. Yes, from the cotton mills. We have the three ties.

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Which one would you like? The one on your neck. No, the Lib Dem one.

:03:29.:03:39.
:03:39.:03:39.

Can't find a tie like this. They're all machine washable, by the way.

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The 2012 one. Going to try to take this away, like the mug. Oh, you

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have done that before. The other two will be on eBay later today.

:03:48.:03:58.
:03:58.:04:04.

LAUGHTER Now, after the big Cabinet moves -

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not that big - yesterday, this morning the Prime Minister has been

:04:07.:04:10.

finishing off his ministerial line- up with many of the more junior

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posts being filled. So let's have a look at how the class of 2012 is

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shaping up. What do we know, Jo? Well, we know pretty much

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everything. As Number Ten's reshuffle draws to a close, we can

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now have a good look at some of the key appointments in this new

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generation of Ministers. At the Business Department the fresh faces

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are Michael Fallon and Matt Hancock. That's being seen as a way for the

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Conservatives to keep a closer eye on Vince Cable, the Lib Dem

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Business Secretary. At Justice Chris Grayling replaces Ken Clarke

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at the Cabinet table. He's expected to take a harder line over prisons

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and the European court. Helen Grant, one of the 2010 intake, also gets a

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job. At Education the Lib Dem David Laws is back in Government two

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years after resigning over his expenses, and as Minister of State,

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this gives the party more influence at Michael Gove's Department. Liz

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Truss, another new girl, is also given a junior job. At Transport

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the new man in charge is Patrick McLoughlin, who unlike his

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predecessor says he has an open mind over a new runway at Heathrow.

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Simon Burns, the former Health Minister, joins him. And at Health

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David Cameron's old boss Andrew Lansley is out in favour of Jeremy

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Hunt. He's joined by Norman Lamb, an ally of Nick Clegg, and Anna

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Soubry and Dr Dan Poulter, both elected in 2010. So what does the

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Government look like after all these changes? Well, it includes

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more bright young things, with eight MPs from the 2010 intake

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beginning their climb up the Ministerial ladder. But as these

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are all junior posts the average age of the Cabinet is little

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changed, down from 54 to 52. And the number of women in the Cabinet

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has fallen from five to four. Baroness Warsi will continue to

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attend Cabinet despite being moved to a new position at the Foreign

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Office. Let's speak now to our deputy

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political editor James Landale. The warning has been at Heathrow, Boris

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Johnson trying to spoil the party for David Cameron. Yes, he clearly

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doesn't want to let this one drop. Yesterday he put out a statement

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raining on David Cameron's parade saying it was wrong to get rid of

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Justine Greening from the transport department simply because she was

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against a third runway and Boris Johnson is against a third runway.

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Today Boris Johnson decided to push that even further and has asked the

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Prime Minister not just to rule out any change of this policy into the

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next election, but he wants him to rule it out forever. This was

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something the Prime Minister's spokesman this morning was fairly

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dismissive of and saying the policy is the policy. The coalition

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agreement is the coalition agreement and governments don't get

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into what may or may not happen after the next election. The papers

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have reported that it is a tilt to the right. Lib Dems are saying

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they're going to hold them to the coalition agreement. Does this mark

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a start of a divorce in the coalition? Look, the point is this

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coalition remains. However much you change the personnel within it, it

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is still a coalition, and until such time it ceases to be a

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coalition it doesn't really matter how you change the personnel. Yes,

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you could have a bit more nuance here and there, but the agreement

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is pretty clear. The Liberal Democrats are making sure they're

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not going to change any of that they're saying if the Conservatives

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want to make more right-wing noises they can use that to their

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electoral advantage saying it's more important to have in their

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point of view Liberal Democrats in Government restraining these new

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right-wing Conservatives. On, for example, Heathrow, there might be a

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change of policy, but it's not going to be - Grant Shapps, the

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party chairman, made clear this - until the next general election.

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We're not talking about something that's going to happen in the next

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couple of years. We're talking about change to the Tory manifesto.

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Also on things like justice, yes, there might be a change in tone

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from Chris Grayling, but where exactly will he change policy? Is

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he suddenly going to turn on the taps and allow the prison numbers

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to go up and increase prison capacity. It won't be Lib Dems's

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restraining but the Treasury because they're just not going to

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give them the money. Thank you. Grant Shapps, what did Warsi do so

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wrong she had to be replaced by you? I don't think anything. I

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think she was a very good chairman. Whenever you reshuffle you always

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say why is that person not doing that job and doing something else

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and vice versa? The truth is at some point you need to move your

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team around. In the case of this Prime Minister... She went off in a

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huff to Yorkshire we're told. Before a reshuffle people say

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they're happy doing the jobs. I said the same about my housing job.

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It's with some regret I moved from that work because I would like to

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see it through, but she's about to do a important job at the Foreign

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Office. She's at a senior level, still going into the Cabinet, so I

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am sure her contribution will be there for a long time. I am told

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three Cabinet Ministers cried when they were fired or moved. Were you

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one? No. Are you sure? You're making me very emotional about it.

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Let me see if I can make you cry about something else - how many

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have you inherited? I haven't gotten into that. You're the

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chairman, and you don't know how many your party - any general

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fighting a war would want to know how many soldiers he has?

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appreciate the advice. Maybe I can help you because when Mr Cameron

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became Prime Minister - became leader of his party - not Prime

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Minister - in 2005, there were 300,000 Conservative members.

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According to a Conservative home survey just gone in July, there is

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now between 130 and 170,000, losing almost 50%. I treat this with

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scepticism for one reason because the truth is membership isn't

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entirely pooled centrally - some of it is, through a central system. A

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lot of place still work... You're denying the Conservative Party

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membership has plummeted? The truth is, and it's impossible to

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absolutely know because Conservative Party membership,

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actually, probably as with other parties, is handled at a local

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level and then pooled at a national level to try the find out figures.

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When I find out more about this, no doubt I'll come back and talk to

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you, but there will be lots of members not registered nationally.

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All the polls show people are worried about the economy, about

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jobs, about growth, about business, whether their business will still

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be in business. The Prime Minister has arranged the deck chairs on

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International Development, and who runs the Commons - not exactly in

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touch with public opinion, is he? think there has been change in

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probably half the Cabinet posts. Not the posts at the top. What he's

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tried to do is this - we want some stability within the Government in

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order to continue to tackle the really big issues of things like

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dealing with the deficit, but actually what you want to do have

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people who have a proven track record of delivery, so we have -

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we're about to bring into the Government - the man who delivered

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the Olympics, who got all the stadium built on time, the Chief

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Executive of LOCOG. That's somebody with - right, business people.

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me in the British history - a businessman who has been a success

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in British politics? Typically what we have seen from businessmen who

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have come in - I am thinking of Archie Norman or someone who has a

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very specific business background. What's different about this is he's

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not been running a business in the traditional sense -

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PROBLEM WITH SOUND Correct? Let me explain. There is a

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difference here. He's delivered through the public service the 2012

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Games, add staith stadia and had to battle the Whitehall machine from

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that perspective. He's an insider but good at delivery. The theme of

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the reshuffle is putting in place people who understand how to get

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the job done. We have passed all the legislation. We have had all

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the policy ideas. This half of the Parliament has to be about

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delivering it. That's what this team is about. You came in without

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a team for delivery? You wasted two years because you had people who

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couldn't deliver? Not at all. What you have in politics and in

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Parliament - you know, the process is a two-stage thing - three,

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really. You have to design the policy, something which has yet to

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happen for Her Majesty's opposition but a stage you have to go through.

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You have to implement that by passing the laws, which is a very

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elongated process. It took two years the pass the first bit of

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housing legislation getting through Parliament. We're into the third

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stage. What the Prime Minister has done is brought... You're into the

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first stage of implementation by what you just said. You said you

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designed the policies. You said you then had to make these policies law.

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Now you're going to implement. It's only after two years in power

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you're going to... I have said on your programme before democracy is

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a very slow process. I wish it was a lot faster. Let me ask you this -

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the deficit has started to rise again. The cuts have barely begun.

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88% of cuts have to be introduced. There is no growth in the economy,

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and you have increased the tax and regulatory burden on the economy.

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What difference will the reshuffle make to any of that? Well, let me

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just challenge your assumptions first of all. You're right that the

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deficit is proving difficult this year. It's absolutely true. No-one

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imagined the world economy in this position in Europe in particular

:13:30.:13:33.

all this way through. No-one - I think you have said that you have

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predicted it, but mainly economists weren't predicting three or five

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years after the start of this we'd be in this situation, so it's

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difficult. We're fighting strong head wind, but secondly it's not

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true to say that the deficit overall hasn't been cut. No, I

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haven't said that. I said the deficit is starting to rise again,

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and these are your Government figures, but never mind... Let's be

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clear. We dealt with a quarter... You have only cut the deficit by

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25% last year. It's now rising again. The deficit is under

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pressure. I absolutely agree. It's clear we're not getting as much

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growth as we would like, and the rest of Europe is getting none too.

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Let's not underestimate the problems. I must challenge your

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point about regulation. The surveys typically show that actually we

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have been making some headway on cutting regulation. I'll give you

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one simple example. Last week I got a housing development going which

:14:26.:14:31.

has been stalled for more than ten years in Kent. It will build 22,000

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homes in the next 20 years. How many quangos were involved in

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trying to get that going over those ten years? Answer: 63 of them. We

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have cut the number of kanggos down to virtually nothing and we are

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cutting the bureaucracy. Rachel Reeves, you're not denying the

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overall tax burden has risen under your Government? We have always

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said if we're going to deal with the deficit, we're going to reduce

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the spending... Yes or no? Let me explain. 8/10 of it has been

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reducing spending and the other has been reducing the tax burden. One

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last thing - people flippantly say most of the cuts have yet to come

:15:13.:15:17.

in. That's true if you work off the spending that was projected to go

:15:17.:15:20.

like this, but since we have already reduced the expenditure,

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you can take any moment in time, project forward and say, by there

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point you would have had all of that extra spending and the pain is

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going to be felt. It's not spent - you get that. I get you. You use

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the word "cut" where it matters. You must think it's much ado about

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nothing. The key personnel haven't changed, and the policies haven't

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changed. It's all well and good to say now we're going to move to

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implementation stage but we have had over two years now and all

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that's been delivered is a double- dip recession. I am still not at

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all convinced there are any policies in place to get us out of

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that situation. Of course there are problems in Europe and elsewhere.

:15:59.:16:03.

The reality is apart from Italy, we're the only one of the 20 most

:16:03.:16:06.

industrialised economies that's come back into recession, and the

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fact that we're in recession has to be due to the policies that have

:16:11.:16:14.

been implemented here in the UK, the decisions to cut as far and as

:16:14.:16:18.

fast as the Government have done have choked off economic growth,

:16:18.:16:22.

resulted in us going back into a recession. As you say, Andrew, also

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means that this year in the first four months of this year we're

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borrowing 25% more than we were doing a year ago, whereas -- with

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most people predicting borrowing this year will be more than last.

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That's not because the Government haven't made the cuts and put up

:16:39.:16:44.

tax. It's because tax revenue isn't coming in because businesses aren't

:16:44.:16:54.
:16:54.:16:56.

succeeding and Unemployment is high Before we move on, why is Downing

:16:56.:16:59.

Street spinning against Justine Greening for sticking to your

:16:59.:17:03.

party's promise not to build a third runway? He's been attacked

:17:03.:17:06.

and she had to be moved and only in the job for ten months. She's the

:17:06.:17:10.

one who is sticking to the manifesto pledge? We are all

:17:10.:17:13.

sticking to it. That's to be absolutely clear. For now. We are

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

not going to build a runway. It's back on - That's a bit disingenuous.

:17:23.:17:32.

Firstly, you went into the election - You were in favour of one.

:17:32.:17:39.

There's no problem. At least we are being honest. People in put any and

:17:39.:17:41.

Richmond didn't think you were going into the election saying you

:17:41.:17:46.

weren't going to build it in the next couple of years. When you go

:17:46.:17:49.

into an election you publish a manifesto and people expect you to

:17:49.:17:53.

stick to it and we are absolutely going to stick to it. I would

:17:53.:17:58.

suggest that you are both all over the place when it comes to this.

:17:58.:18:03.

You came to power being against it. And you are now in the process of

:18:03.:18:06.

changing your mind. You fought the last election being in favour and

:18:06.:18:10.

now you're against it. It's what called a muddle on the left and

:18:10.:18:14.

right. We'll come back to this after PMQs so hold that thought. We

:18:14.:18:18.

need to move on. Right, as we have been discussing, the reshuffle

:18:18.:18:21.

hasn't been solely a Conservative affair, with Nick Clegg getting in

:18:21.:18:25.

on the action too. The big news bringing David Laws back into

:18:25.:18:30.

Government as schools minister, and a Minister of State in the Cabinet

:18:30.:18:35.

Office. He was keen to show him off. The two joined the Breakfast Club

:18:35.:18:40.

in East London, where the Deputy Prime Minister enjoyed a bowl of

:18:40.:18:45.

porridge, whilst David Laws stuck to a single piece of toast. Mr

:18:45.:18:49.

Clegg used the visit to champion the pupil premium, money for

:18:49.:18:52.

schools for children from deprived backgrounds. The Liberal Democrats

:18:52.:18:59.

see this as one of their principal successes in Government. I attach

:18:59.:19:02.

particular personal significance to this. I heard and saw about this

:19:02.:19:05.

when I was travelling different cubs ten years ago and I first

:19:05.:19:09.

wrote about it ten years ago and David and I put it into our

:19:09.:19:12.

manifesto and put it into the coalition agreement and now it's

:19:12.:19:16.

coming to a school near you, so to speak. That is a very exciting

:19:16.:19:20.

journey for us to have seen. David in his new position in the

:19:20.:19:24.

department for education, among other things, will make sure that

:19:24.:19:28.

all schools use the premium as well as you have done. Nick Clegg there.

:19:28.:19:33.

We have been joined now by the Liberal Democrat MP, Martin Hoard.

:19:33.:19:39.

Welcome to the programme. He has two jobs, which is the most

:19:39.:19:43.

important? They are both important. In education he's clearly going to

:19:43.:19:48.

be championing the implementation, but the Cabinet Office role, with

:19:48.:19:51.

the free-roving brief is really quite significant. It will enable

:19:51.:19:55.

him to troubleshoot across issues where we don't have Lib Dem

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ministers, so that could be a very significant one that watch. What

:19:59.:20:05.

you like to see? Like defence? That's an obvious one. The Trident

:20:05.:20:12.

review is contentious within the coalition and there was a defence

:20:12.:20:16.

with Nick Harvey, but he's not there, so that's one area where

:20:16.:20:22.

David could offer advice and support. You have got David Laws

:20:22.:20:26.

back but everybody is saying this reshuffle is a move to the right.

:20:26.:20:29.

Menzies Campbell has also said so. Does that weaken the Liberal

:20:29.:20:33.

Democrats? I don't think it is. There are obviously the same number

:20:33.:20:36.

of Lib Dem ministers as before. We have important changes not just

:20:36.:20:40.

David, but people like Norman Lamb at health and Paul Burstow did a

:20:40.:20:45.

great job on the social care side, but Norman has enormous experience

:20:46.:20:48.

in mainstream NHS politics and policy, so that's going to be very

:20:48.:20:53.

important. I think overall, where there are some ministers who are

:20:53.:20:58.

being portrayed as sort of right- wingers going in, I think the point

:20:58.:21:01.

is if we stick to the agreement and the same is true on aviation, then

:21:01.:21:05.

we should be in for a reasonably smooth path. I think where the

:21:06.:21:09.

coalition has had problems in the last couple of years is where we

:21:09.:21:13.

have deviated from the agreement. That's the problem, because you say

:21:13.:21:17.

if you stick to the agreement, but we are seeing the Conservatives not

:21:18.:21:21.

sticking to the coalition agreement and you just haven't got that

:21:21.:21:24.

influence in Government to stop things happening like House of

:21:24.:21:27.

Lords' reform or tuition fees, which you went into the election

:21:27.:21:32.

promising one thing and did the total opposite. I wouldn't like to

:21:32.:21:36.

speculate if if we had in coalition with the Labour Party. There are

:21:36.:21:42.

issues like the NHS and - Which your conference voted against.

:21:42.:21:46.

Lords reform, that's where we have seen Conservative ministers perhaps

:21:46.:21:51.

not delivering or going off piste a little. The key message of the

:21:51.:21:56.

reshuffle is we now need to stabilise Government again. We have

:21:56.:21:59.

had a jittery year and we need to stabilise and look forward, but it

:22:00.:22:04.

needs to be rooted in the agreement and there's still plenty to do.

:22:04.:22:07.

Picking up on what Rachel is saying, do you think Jeremy Hunt should

:22:07.:22:13.

have been promoted to health? raised a few eyebrows. That's being

:22:13.:22:19.

nice. Do you think he should have been? It has raised Lib Dem

:22:19.:22:29.
:22:29.:22:30.

eyebrows too. With the exception of BSkyB issue, he's proved to be a

:22:30.:22:37.

part of a good team. Conservative ministers have been describing this

:22:37.:22:40.

as removing obstacles to getting policies done. That sounds like the

:22:40.:22:43.

Liberal Democrats here in those departments. Do you agree? No, I

:22:43.:22:48.

don't, obviously. I think there are some - actually there is a lot of

:22:48.:22:52.

stability on the Lib Dem side within senior ministerial level and

:22:52.:22:59.

the Secretary of State levels. The key people - Vince Cable and Ed

:22:59.:23:02.

Davey will be there pursuing the green business agenda and

:23:02.:23:05.

delivering on things like the Green Investment Bank and the green deal.

:23:05.:23:09.

Which we are still waiting for? Absolutely. They are on track and

:23:09.:23:12.

they'll be delivered, so the commitments are still there and

:23:12.:23:15.

they're powerful. On issues like aviation and planning we have to

:23:15.:23:19.

stick to the agreement and we'll be fine. Making sure that nothing

:23:19.:23:24.

happens before 2015. Do you see it as the start of divorce, hold on to

:23:25.:23:30.

what they've got, but planning for the 2015 election? Not at all. On

:23:30.:23:34.

Heathrow Airport, you may see both parties probably starting to begin

:23:34.:23:39.

to think about 2015 manifestos and when they might promise in the next

:23:39.:23:43.

Parliament. Ministers have - didn't have any policies in the

:23:43.:23:50.

south-east. You are against any new runways. The coallation agreement

:23:50.:23:54.

says none at Heathrow Airport, Gatwick Airport or Stansted Airport.

:23:54.:23:57.

If the Conservative Party want to discuss it and changing what goes

:23:57.:24:00.

in their manifesto that's fine, but they need to stick to the coalition

:24:00.:24:03.

agreement in the meantime. Talking about business and how important

:24:03.:24:06.

the economy is and there are many in business who feel that there is

:24:07.:24:11.

still a block on reform, on things like employment law and supply-side

:24:11.:24:15.

measures that could be done and Vince Cable, as Business Secretary,

:24:15.:24:20.

two new hench man around him, obviously he is seen as someone who

:24:20.:24:25.

has brought in the reports. Do you think it needs to change? I found

:24:25.:24:29.

it was not very motivating to staff to threaten employment rights. I

:24:29.:24:32.

don't think that's the solution to jobs and growth. We need to

:24:32.:24:36.

concentrate, but Vince and others are consVinced that's much about

:24:36.:24:41.

the green economy and stimulating Britain in the areas in which we

:24:41.:24:45.

are exceptional and not about deregulating and damaging

:24:45.:24:48.

employment rights. There may be changes that we can work through

:24:48.:24:51.

and trying to support Europe in trying to rescue the eurozone,

:24:51.:24:55.

which I think is actually the biggest block to growth, these are

:24:55.:25:01.

the important things and I don't think we need to focus on things

:25:01.:25:04.

like Beecroft. Thank you. The new Cabinet will meet this afternoon to

:25:04.:25:09.

have the first get-together since yesterday. There will be a run for

:25:09.:25:11.

the chairs, since there probably aren't enough. The Conservatives

:25:12.:25:15.

believing in a limited government of course. The Prime Minister is

:25:15.:25:18.

expected to say warm words and outline what he expects, but what

:25:18.:25:24.

the Cabinet really wants, all of them, is one of these. They don't

:25:24.:25:28.

care about their new jobs and smart offices. They just want a Daily

:25:28.:25:33.

Politics mug. And if they're lucky David Cameron might be giving them

:25:33.:25:38.

out this afternoon, but for all of you at home you have to enter the

:25:38.:25:41.

Guess the Year competition. We'll remind you how to enter, but we'll

:25:41.:25:51.
:25:51.:25:53.

see if you can remember when this happened.

:25:53.:26:00.

# Turn and face the strain # Changes... # How are you getting

:26:00.:26:10.
:26:10.:26:11.

on with the new coins? It's just terrible.

:26:11.:26:21.
:26:21.:26:22.

# You're never going to get my love # Mr Big stuff... #

:26:22.:26:26.

# The ink is black # The page is white

:26:26.:26:36.
:26:36.:26:39.

# Together we learn to read and write... # The Times and financial

:26:39.:26:43.

times will go to the tabloid shape. It's the modern thing. We're just

:26:43.:26:47.

doing it first. # I tip my head to the new

:26:47.:26:57.
:26:57.:27:19.

To be in with a chance of winning the mug send your answer to our

:27:19.:27:29.
:27:29.:27:32.

special quiz e-mail address: Now, it's coming up to midday here. Just

:27:32.:27:36.

looking at Big Ben. It's a beautiful day here in Westminster.

:27:36.:27:42.

A lovely late summer's day or early autumn day, depending on how you

:27:42.:27:50.

look at it. There hasn't been questions for eight weeks, so we

:27:50.:27:56.

welcome back Nick Robinson. I was told by a leading Tory that what

:27:56.:28:00.

happened early in the summer, when it was clear that they couldn't get

:28:00.:28:03.

the boundary changes through and that the economy still wasn't

:28:03.:28:06.

growing, that the Prime Minister looked over the abyss and thought,

:28:06.:28:11.

"I could be a one-term Tory Prime Minister. I better do something

:28:11.:28:14.

about it." And the reshuffle is part of doing something? Somebody

:28:14.:28:18.

said to me yet, he might only have two-and-a-half years and I think

:28:18.:28:22.

there is that sense that when you look at some of the ruthless

:28:22.:28:28.

changes, shoving Justine Greening out and having someone who is a

:28:28.:28:34.

climate change spep tick as the new Environment Secretary and --

:28:34.:28:37.

sceptic and the new environment and moving around Vince Cable, this is

:28:37.:28:41.

a man who has not lost faith in his economic strategy or Chancellor,

:28:41.:28:45.

but patience with the system to deliver the policies he's already

:28:45.:28:50.

announced. That's partly why they are so delighted to get the guy in

:28:50.:28:54.

from the Olympics, Mr Delivery, Paul Deighton to go around

:28:54.:28:59.

Whitehall saying, "Why isn't this working?" but that's partly because

:28:59.:29:03.

he thinks he might not be here any more and because it's the best

:29:03.:29:08.

chance of winning the next election, and get growth. You get a sense

:29:08.:29:14.

from David Cameron and Nick Clegg that when they make changes, like

:29:15.:29:18.

Mr Nick Clegg's wealth tax, or the change that David Cameron has made,

:29:18.:29:24.

which you have been through, they very much have an eye on their own

:29:24.:29:28.

backbenchers and they know have very few favours and they are doing

:29:28.:29:31.

things to play to that gallery? striking thing about this

:29:31.:29:36.

government and I find it a surprise constantly is it's much tighter at

:29:36.:29:39.

the top than many single party governments and much weaker at the

:29:39.:29:44.

bottom. In other words, you look back at economic crises of the past.

:29:44.:29:49.

Wilson devaluation and Heath on the U-turn and Thatcher on wets and

:29:49.:29:53.

dries and then devaluation. There were great battles in Cabinet.

:29:53.:29:57.

There is no battle in Cabinet about economic strategy. The Labour Party

:29:57.:30:02.

will probably say they wish there were, so I'm not making a point

:30:02.:30:05.

saying aren't they clever, but observing there is no that fight.

:30:05.:30:08.

Where is the tension in politics? It's between Liberal Democrats who

:30:08.:30:11.

don't like the direction their leadership is taking them in and

:30:11.:30:15.

many Tories who just dream of that majority we saw on Guess The year.

:30:15.:30:18.

Did you see that huge figure? Why haven't we got that, they'll be

:30:18.:30:22.

thinking. They want to be able to do things they think Tory

:30:22.:30:28.

governments ought to do and with a new justice sect who knows or the

:30:28.:30:33.

new party chairman. In a sense, they are ditching policies, because

:30:33.:30:37.

this was a Conservative reshuffle. It wasn't a Government reshuffle.

:30:37.:30:42.

It's a Tory reshuffle. The ditching policies hug a hoody and the husky

:30:42.:30:46.

and the greenness and no runway at Heathrow Airport. These are all

:30:46.:30:50.

positions they took in opposition for PR reasons. They didn't have

:30:50.:30:53.

big debates over the rights or wrongs. But took the positions

:30:53.:30:58.

because they were trying to reBrandt party and that rebranding

:30:58.:31:03.

is all unravelling now. Party organisations have those as symbols

:31:03.:31:07.

and much of that is unraveled. There is a big change since then,

:31:07.:31:17.
:31:17.:31:18.

the economic crisis. Hold that House will wish to pay tribute to

:31:18.:31:23.

the servicemen who have fallen, Lance Corporal Matthew Smith of 26

:31:23.:31:31.

Engineer Regiment and Guardsman Jamie Shadrick of the Grenadier

:31:31.:31:34.

Guards. We send our deepest condolences to their friends,

:31:34.:31:42.

family and loved ones. Their selfless service to our Government

:31:42.:31:46.

will never be forgotten. I would like to say to the House one word

:31:46.:31:50.

about the huge success this summer of the Olympic and Paralympic Games.

:31:50.:31:55.

I want to send our congratulations to the superb performance of

:31:55.:31:59.

Britain's athletes and Paralympians. Want to say a huge thank you to all

:31:59.:32:04.

the volunteers who put such a smiling fas on these Games and a

:32:04.:32:06.

large well-done to all the organisers. I think they made the

:32:06.:32:10.

entire country proud and as they have promised, they have indeed

:32:10.:32:13.

inspired a generation. This morning I had meetings with Ministerial

:32:13.:32:18.

colleagues and others. In addition to my duties in the House I shall

:32:18.:32:23.

have further such meetings today. Is the Prime Minister aware that

:32:23.:32:33.
:32:33.:32:44.

Look at the loud boos that greeted the Chancellor will halt the posh

:32:44.:32:47.

boys forever. Why doesn't he be a man and do the decent thing and

:32:47.:32:57.

call a general election? Very good to see the honourable gentleman

:32:57.:33:00.

back in such good form. I'm sorry when I was forming my government of

:33:00.:33:06.

all the talents I couldn't find him on my speed dial. But I have done

:33:06.:33:10.

something that new Labour never managed. I have taken a minor and

:33:10.:33:20.
:33:20.:33:27.

put them in the Cabinet and they Order. Order. The House must calm

:33:27.:33:31.

down. Nadine Dorries. Thank you, Mr Speaker. Mr Speaker, you will be

:33:31.:33:37.

aware that the Deputy Prime Minister and local Democrats

:33:38.:33:42.

renegged on a promise. They said they'd deliver boundary changes. I

:33:42.:33:46.

wonder if the Prime Minister could answer if the Deputy Prime Minister

:33:46.:33:49.

goes to him and says in exchange for state funding of political

:33:49.:33:53.

parties he would deliver boundary changes, what would the Prime

:33:53.:33:58.

Minister's answer be? Well, I'm not in favour of extending state

:33:58.:34:01.

funding. I think it's very important that all political

:34:01.:34:04.

parties work hard tie tract members, to attract donations, and frankly,

:34:04.:34:11.

when we get those, we pay credit to people for funding political

:34:12.:34:16.

parties, which is in in the public interests. Mr Speaker, let me join

:34:16.:34:19.

the Prime Minister in paying tribute to Lieutenant Andrew

:34:19.:34:27.

Chesterman to have 3rd Lieutenant the Rifles, Lance Corporal Smith

:34:27.:34:35.

and Guardsman Jaimmy Shadrick of the Green deer Guards. They all

:34:35.:34:38.

died serving our country. They will never be forgotten, and our

:34:38.:34:42.

thoughts are with their family and friends. I also want to join the

:34:42.:34:45.

Prime Minister in thanking everyone involved in the Olympic and

:34:45.:34:51.

Paralympic games, our athletes, our fantastic volunteers and indeed our

:34:51.:34:55.

whole country that united in support of Team GB and did come

:34:55.:34:58.

together. It did show our country at its best, and we should all be

:34:58.:35:01.

proud of the achievement. Mr Speaker, after two-and-a-half years

:35:01.:35:06.

in Government, the Prime Minister returned from his summer break and

:35:06.:35:10.

told the nation that he now realised it was time to cut through

:35:10.:35:15.

the dither. LAUGHTER

:35:15.:35:22.

Who did he have in mind? LAUGHTER

:35:22.:35:26.

I must say, he's had all summer to think of a question, and that's the

:35:26.:35:33.

best - is that really the best he can do?! Let me - let me set it out

:35:33.:35:39.

for him. Let me explain what this reshuffle is all about. It is not -

:35:39.:35:42.

it is not that there are two economic departments in our country

:35:42.:35:47.

- the Treasury and Business. I want every single department to be about

:35:47.:35:52.

the economy. I want the Transport Department building roads. I want

:35:52.:35:56.

the Communities Department building houses. I want the Culture

:35:56.:36:00.

Department rolling out broadband. I want the Agriculture Department

:36:00.:36:03.

backing British food. This is gaff that means business, and we've got

:36:03.:36:07.

the team to deliver it. Mr Speaker, he mentions the reshuffle, and of

:36:07.:36:12.

course, it's good to see the Chancellor still in his place. I

:36:12.:36:17.

have to say to the - I have to say to the Prime Minister, he's come up

:36:17.:36:20.

with an ingenious solution to the problem of his part-time Chancellor

:36:20.:36:26.

- he's appointed another one - the former Justine Greening -- Justice

:36:26.:36:29.

Secretary. It's a job share. We'll see how they get on. I don't know

:36:29.:36:34.

if he remember, but a year ago, he published his national

:36:34.:36:37.

infrastructure plan alongside the autumn statement, and he said at

:36:38.:36:41.

the time of that plan it was an all-out mission to unblock the

:36:41.:36:47.

system. So can he tell us one year on of the road building projects

:36:47.:36:53.

announced in that plan, how many have actually started? Well, first

:36:53.:36:57.

of all, I'm glad he mentioned the issue of Chancellors because, of

:36:57.:37:01.

course, I have got my first choice as Chancellor. He's got this is

:37:01.:37:08.

third choice as Shadow Chancellor. And apparently, he still has to

:37:08.:37:13.

bring in the coffee every morning. That's just how assertive and butch

:37:13.:37:17.

the Leader of the Opposition really is. Now, he asked about

:37:17.:37:20.

infrastructure. He asks about infrastructure. If you look at what

:37:20.:37:30.
:37:30.:37:30.

is planned by this Government between 2010 and 2015, we will be

:37:30.:37:35.

investing �250 billion in infrastructure. That compares with

:37:35.:37:40.

just �113 billion between 2005 and 2010. That shows he's absolutely

:37:40.:37:43.

not got a clue. The difference between the Shadow Chancellor and

:37:44.:37:46.

the Chancellor is the Shadow Chancellor was right about the

:37:46.:37:52.

economy, and the Chancellor was wrong, and look, and look, I have

:37:52.:37:56.

to say - I have to say, Mr Speaker, the Paralympic crowd spoke for

:37:57.:38:00.

Britain. APPLAUSE

:38:00.:38:04.

Now, of course, characteristically, it's another Prime Minister's

:38:04.:38:07.

Questions - we're back. He doesn't answer my question. The answer is,

:38:07.:38:12.

none of the red-building programmes announced in his grand

:38:12.:38:15.

infrastructure plan have started. Let's look at another grand claim

:38:15.:38:22.

he made. In March he published his housing strategy, and he said our

:38:22.:38:25.

housing strategy is beginning to get Britain building again. Before

:38:25.:38:28.

he starts talking up his next announcement about housing, let's

:38:29.:38:32.

look at the last. Can he tell us since his announcement how many

:38:32.:38:37.

houses have started to be built? Housing starts are up 30% since

:38:37.:38:41.

2009, which was the lowest rate of house building since the 1920s.

:38:41.:38:47.

That is what his Government left. Now, he prays to the gunwales. Let

:38:47.:38:53.

us remember it is the Shadow Chancellor who landed us in this

:38:53.:38:59.

mess. Who was the City Minister when the City went bust? The Shadow

:38:59.:39:02.

Chancellor. Who was the man who gave us the biggest deficit budget

:39:02.:39:06.

in the developed world? The Shadow Chancellor. That is what that team

:39:06.:39:10.

has developed. That is why British people will never trust them again.

:39:10.:39:15.

Mr Speaker, I think sometimes he forgets - he's been Prime Minister

:39:15.:39:19.

for two-and-a-half years. He's got to defend his record, and he can't

:39:19.:39:23.

defend his record. Of course, again, he didn't answer my question. I

:39:23.:39:29.

asked him - I asked him about what happened to housing starts since he

:39:29.:39:35.

made his announcement. The reality is housing starts have fallen since

:39:35.:39:41.

then and are 20 - 24% lower than they were a year ago and lower than

:39:41.:39:44.

they were at time of the last Labour Government, so another grand

:39:44.:39:48.

claim, another grand claim that hasn't materialised. Now let's talk

:39:48.:39:54.

about planning. In March after 18 months of consultation, he hailed

:39:54.:39:57.

his flagship planning policy and said it was the biggest revolution

:39:57.:40:01.

in 60 years, but on Sunday, Mr Speaker, he said he was frustrated

:40:01.:40:07.

by the system, and the hoops we have to jump through, and he wanted

:40:07.:40:10.

to change it again. Mr Speaker, how is the Prime Minister so

:40:10.:40:15.

incompetent that he brings in a flagship planning bill, calls it a

:40:15.:40:20.

revolution, then six months later says it's not fit for purpose?

:40:20.:40:25.

national planning statement we inherited from Labour was over a

:40:25.:40:32.

thousand pages. It is now down to just 52 pages. We have radically

:40:32.:40:34.

simplifyed the planning system, something he should be praising

:40:34.:40:39.

rather than attacking. He might want to notice that today the World

:40:39.:40:43.

Economic Forum has come out and said for the first time in a decade

:40:43.:40:47.

instead of Britain going down did world competitiveness ratings,

:40:47.:40:51.

we're back in the top ten and rising. Let me read what they said:

:40:51.:40:56.

"The United Kingdom continues to make up lost ground in rankings

:40:56.:40:59.

this year, lost ground that happened under the last Labour

:40:59.:41:03.

Government." Now, there is a reason for that. It's because this

:41:03.:41:07.

Government is cutting regulation, cutting corporate tax, taking

:41:07.:41:12.

people out of tax, getting our businesses moving in this country,

:41:12.:41:15.

investing in the regional growth fund, delivering more

:41:15.:41:18.

apprenticeships than any other Government. That's what we're doing.

:41:18.:41:22.

What's he done this summer? Where are the policies on welfare and on

:41:22.:41:27.

education? Nothing. Where is the great plan for our economy? His

:41:27.:41:30.

only answer to a debt crisis is to spend more, borrow more and put up

:41:30.:41:38.

the debt. Back to the bunker, I'm afraid, after that one, Mr Speaker.

:41:38.:41:42.

I notice - I think the crimson tide is back as well.

:41:42.:41:45.

LAUGHTER Mr Speaker, over the last two-and-

:41:45.:41:48.

a-half years we have seen announcements on infrastructure

:41:48.:41:52.

failed, announcements on housing failed, announcements on planning

:41:52.:41:57.

failed. Now, what's the reason for this economic failure? The reason

:41:57.:42:00.

is his fundamental economic approach is wrong. After the summer,

:42:00.:42:04.

we now know that in his whole two- and-a-half years as Prime Minister,

:42:04.:42:12.

the British economy has not grown at all. So why doesn't he admit it?

:42:12.:42:17.

The real problem is this: plan A has spectacularly failed. Let me

:42:17.:42:21.

tell him what is actually happening in our economy, which is you're

:42:21.:42:26.

seeing the private sector growing and expanding. There are 900,000

:42:26.:42:30.

more people employed in the private sector than there were two years

:42:30.:42:35.

ago. We are now a net exporter of cars and motor vehicles for the

:42:35.:42:39.

first time since the 1970s. You're seeing the fastest rate of business

:42:39.:42:43.

creation that you have seen for decades. That is what is happening.

:42:43.:42:48.

Our economy is rebalancing. There is growth in the private sector.

:42:48.:42:54.

Our exports to China are up 72%,ed to inia, up 94%, to Russia up over

:42:54.:42:59.

a hundred per cent. That is what is happening. It is a hard road, a

:42:59.:43:02.

difficult road but we'll stick to that road because we'll deliver for

:43:02.:43:08.

the British economy. Mr Speaker, we're in the longest double-dip

:43:08.:43:12.

recession since the Second World War. How out of touch does this

:43:12.:43:18.

Prime Minister sound? And I - I have to say - and I have to say to

:43:18.:43:21.

Tory Members of Parliament, if they go to their constituents and start

:43:21.:43:25.

trying to blame everybody else - they have been in Government two-

:43:25.:43:28.

and-a-half years! It's happened on their watch. Now, Mr Speaker, Mr

:43:28.:43:32.

Speaker, we saw a reshuffle yesterday. He brought back the

:43:32.:43:37.

member for Yeovil who had been sacked. He promoted the Culture

:43:37.:43:41.

Secretary, who should have been sacked, and he left in place the

:43:41.:43:43.

part-time Chancellor that the whole country knows should be sacked.

:43:43.:43:49.

It's the same old faces, the same old policies and no change

:43:49.:43:54.

reshuffle. Mr Speaker, if he really wants to cut through the dither,

:43:54.:44:00.

there's no place like home. The big difference in British politics is

:44:00.:44:04.

that I don't want to move my Chancellor. He can't move his

:44:04.:44:09.

Shadow Chancellor. The fact is in spite of all the economic

:44:09.:44:15.

difficulty, this is a strong and united Government, and in spite -

:44:15.:44:18.

and in spite - in spite of all the opportunity, this is a weak and

:44:18.:44:28.
:44:28.:44:29.

divided opposition. THE SPEAKER: Order. Order! Order!

:44:29.:44:33.

There is going to be more, and it's going to be from a knight, Sir

:44:33.:44:38.

Malcolm Bruce. Thank you, Mr Speaker. I wonder if the Prime

:44:38.:44:43.

Minister has seen today that PWC have produced a report saying that

:44:43.:44:46.

Aberdeen needs to recruit 120,000 skilled people in the next ten

:44:46.:44:51.

years if we're to deliver our capacity in the global energy

:44:51.:44:56.

economy? Will the Government take steps to ensure that an energy

:44:56.:44:59.

academy and the necessary support for training is put in place so we

:44:59.:45:02.

can deliver growth for the United Kingdom? I think my Right

:45:02.:45:05.

Honourable friend raises a very important point, which is the

:45:05.:45:11.

growth of the economy around Aberdeen obviously linked to that

:45:11.:45:14.

area which has been extremely successful. I want to see that

:45:14.:45:17.

continue to expand. I'll listen carefully to what he says and what

:45:17.:45:20.

the Government can do to help provide that extra capacity, which

:45:20.:45:25.

I have seen for myself. Can the Prime Minister confirm that we know

:45:26.:45:31.

in the summer that the UK have borrowed �9.3 billion more in the

:45:31.:45:34.

first four months of this year than it did in the corresponding period

:45:34.:45:43.

We have cut the Budget Deficit by a quarter in two years, but obviously

:45:43.:45:46.

it's very challenging to get the deficit down. I would just note

:45:46.:45:52.

that Labour's answer to getting the deficit down is to borrow more. To

:45:52.:45:57.

borrow an extra �200 billion. The one way you cannot get borrowing

:45:57.:46:06.

down is to put borrowing up. Speaker, my constituents were

:46:06.:46:11.

delighted when BMW announced 250 million to increase Mini production

:46:11.:46:15.

and call their axe Ford plant the heart and home of this great

:46:15.:46:19.

British success story, does the Prime Minister agree that this kind

:46:19.:46:22.

of inward investment is vital to kickstart the economy and we must

:46:22.:46:26.

do more to prioritise policies to make the UK more attractive to

:46:26.:46:34.

investors? My honourable and friend have neighbouring constituencies

:46:34.:46:38.

and many constituents who work there say it's very good news that

:46:38.:46:43.

BMW are investing 250 million, on top of the 500 million announced

:46:43.:46:47.

last year. That is safeguarding over 5,000 jobs in the Oxford and

:46:47.:46:52.

Swindon plants. It is part of a huge recovery story for the British

:46:52.:46:55.

motor manufacturing industry. We are now net exporters. That hasn't

:46:55.:47:00.

happened since the 1970s and it's a huge credit to Jaguar Land Rover

:47:00.:47:06.

and Nissan and Toyota and BMW, to all the companies that are invest -

:47:07.:47:10.

- investing and choosing Britain. They are not choosing Britain

:47:10.:47:14.

because of the weather, but because we are cutting tax and investing in

:47:14.:47:23.

the infrastructure and they know this is a country open to business.

:47:23.:47:27.

Poor Wirral families face the indignity of food banks and Save

:47:27.:47:31.

The Children are launching their first campaign for British children.

:47:31.:47:36.

What is the Prime Minister doing to help? We target families who are

:47:37.:47:43.

the poorest in the country with the tax credits. But we should also

:47:43.:47:47.

praise the voluntary efforts that help the poorest families in this

:47:47.:47:50.

country too. Would my right honourable join me in paying

:47:50.:47:54.

tribute to the 23 people in our country who work with such

:47:54.:47:57.

commitment in the private sector, the one that generates the wealth

:47:57.:47:59.

of this country and would he welcome the fact that under this

:47:59.:48:03.

government we now have more people employed in the private sector than

:48:03.:48:07.

at any time in our history? I think the point he makes is very

:48:07.:48:12.

important. If you actually look at the figures and include all of the

:48:12.:48:15.

financial sector, there are more people employed in the private

:48:15.:48:19.

sector today, in Britain, than at any time in our history. What you

:48:19.:48:23.

seek - oh, the Shadow Chancellor says that's because we are if

:48:23.:48:26.

recession. It's because companies are choosing to employ people and

:48:26.:48:30.

the private sector is getting larger and that is good news.

:48:30.:48:34.

Employment is up 201,000 this quarter. Unemployment is down

:48:34.:48:38.

46,000 this quarter. The claimant count has fallen. The rate of

:48:38.:48:41.

unemployment is down. Youth is down and I would have thought the whole

:48:42.:48:47.

House would welcome those figures. Last Sunday, the Prime Minister

:48:47.:48:51.

told us there should be no more excuses for failure. Given that his

:48:51.:48:56.

policies have produced the longest double-dip recession since the war,

:48:56.:49:00.

with output down and borrowing up and a collapse in consumer

:49:01.:49:04.

confidence, is his failure to apologise because he doesn't take

:49:04.:49:10.

his own advice or because he considers that a record of

:49:10.:49:13.

outstanding success? This comes from an honourable lady who served

:49:13.:49:18.

in a government which after 13 years delivered us the longest and

:49:18.:49:21.

deepest recession since the war. And gave us the biggest budget

:49:21.:49:24.

deficit virtually any country in the developed world had. Of course,

:49:24.:49:28.

it takes time to get yourself out of a hole, as deep as the one that

:49:28.:49:38.

was dug by the Shadow Chancellor and the Leader of the Opposition.

:49:38.:49:43.

Does - over the summer Jaguar Land Rover announced the creation of

:49:43.:49:49.

1100 further jobs. This is in addition to the 750 jobs they are

:49:49.:49:54.

creating in my constituency. Does the Prime Minister agree there is a

:49:54.:49:58.

stark contrast between the rhetoric of the last Labour Government about

:49:58.:50:01.

reriefg the industry and the actions and delivery -- reviving

:50:01.:50:05.

the industry and the actions and delivery of this Government? He's

:50:05.:50:12.

right. In the last two years Jaguar Land Rover has hired an extra 8,000

:50:12.:50:16.

new workers. That is a massive success story for the West Midlands

:50:16.:50:23.

and for a great British brand, but also a big success for massive

:50:23.:50:25.

inward investment from the Indian parent company. We should praise

:50:25.:50:30.

all these and recognise we have to do even more to make Britain a

:50:30.:50:33.

really business-friendly country. With low rates of regulation and

:50:33.:50:36.

tax and lots of support for apprenticeships and infrastructure.

:50:36.:50:40.

That is what we are delivering on this side of the House and we'll

:50:40.:50:45.

continue to do so. Hundreds of young people from outside Europe

:50:45.:50:51.

chose London Metropolitan University, confident in British

:50:51.:50:54.

higher education. He needs to tackle visa fraud, but will he lift

:50:54.:51:00.

the threat to deport students who paid their fees and complied with

:51:00.:51:05.

all the rules? I know that the honourable gentleman speaks with

:51:05.:51:08.

considerable experience and obviously wants to speak up as well

:51:08.:51:11.

on behalf of his constituency. Having looked at this case and look

:51:11.:51:15.

at the action that the Border Agency has taken, it seems to me

:51:15.:51:19.

there was some real abuses going on. What I want to see is Britain open

:51:19.:51:23.

to students - and let's be clear, anyone who can speak English and

:51:23.:51:27.

who has a university place is able to come here and study at our

:51:27.:51:31.

universities, but quite rightly the immigration minister has been very

:51:31.:51:35.

hard in terms of closing down bogus colleges and making sure that good

:51:35.:51:38.

universities like this one, if they are not meeting the rules, they

:51:38.:51:41.

have to take action. That must be right if we're going to control

:51:41.:51:49.

immigration. Does the Prime Minister -- is the Prime Minister

:51:49.:51:54.

aware that in Watford in the last quarter of 2012, where the numbers

:51:54.:51:58.

have just come out, 327 new companies were incorporated? This

:51:58.:52:02.

is a record. This is way beyond anything else in history and I

:52:02.:52:06.

think he would agree it shows the Government's poll for encouraging

:52:06.:52:11.

private enterprise is succeeding. He makes a very important point. As

:52:11.:52:16.

I understand it, 2011 saw the fastest rate of new business

:52:16.:52:19.

creation of any year that we have seen in decades. That's what our

:52:19.:52:24.

economy requires. It takes time and patience, because we need a massive

:52:24.:52:26.

rebalancing, away from the public sector, towards the private. We

:52:26.:52:31.

need to see other industries, not just finance and retail succeed. We

:52:31.:52:34.

want to see the business regeneration happening right across

:52:34.:52:38.

the country. This rebalancing takes time. It is difficult, but it's the

:52:38.:52:40.

only long-term way out of the economic difficulty that we were

:52:41.:52:48.

left by the party opposite. Prime Minister is right to

:52:48.:52:52.

celebrate the most extraordinary Paralympics that we have seen and

:52:52.:52:57.

are seeing at the moment and the exceptional achievement of Team GB

:52:57.:53:03.

within those Games. What will he then say to Baroness Tanni Grey-

:53:03.:53:09.

Thompson and the others who have warned this week that his decision

:53:09.:53:13.

to cut disability living allowance will prevent disabled people

:53:13.:53:18.

participating in sport and threaten the legacy of the London Games?

:53:18.:53:22.

First, the message I would give to everyone in Paralympics GB, the

:53:22.:53:27.

separate team to Team GB is a huge congrallations for their massive --

:53:27.:53:30.

congratulations for their massive success. It's been truly inspiring

:53:30.:53:35.

being able to watch on television or the privilege of going there, to

:53:35.:53:39.

see absolutely packed stadiums for the Games. Not something everyone

:53:39.:53:43.

expected, but something that says a lot about our country and people.

:53:43.:53:47.

Answering the question directly, we are not cutting the money that is

:53:47.:53:51.

going into supporting disability. We are reforming the system,

:53:51.:53:53.

replacing disability living allowance with a personal

:53:53.:53:57.

independence payment and it is all about recognising people's needs.

:53:57.:54:00.

It has been worked up with the disability lobby very, very

:54:00.:54:07.

carefully and I think it will be improvement on the current system.

:54:07.:54:11.

The Prime Minister, I know, is well aware of the lack of capacity at

:54:11.:54:16.

Britain's airports, but in seeking to resolve this problem, will he

:54:16.:54:19.

consider of the opportunity presented by regional airports like

:54:19.:54:23.

those in Birmingham, that can help rebalance the economy? I think my

:54:23.:54:28.

friend makes a very good point about regional airports. Let me be

:54:28.:54:31.

frank, the very large infrastructure projects are

:54:31.:54:33.

extremely difficult for individual governments to take and to deliver.

:54:34.:54:38.

I think what we need to do is build a process that hopefully has cross-

:54:38.:54:43.

party support so we can look carefully at this issue and deliver

:54:43.:54:46.

changes that will address the problems of capacity that we'll

:54:46.:54:49.

have in future years and that address the issues of the hub

:54:49.:54:53.

status of the UK. I'm hoping to make an announcement about this

:54:53.:54:57.

over the coming days, but it's important we worse across party

:54:57.:55:00.

lines, because this won't happen unless parties actually sign up to

:55:00.:55:07.

a process that can deliver. wondered if I could cut through the

:55:07.:55:10.

waffle that the Prime Minister gave us in the answer to disability

:55:10.:55:15.

living allowance. The reality is that 600,000 disabled people will

:55:15.:55:21.

be losing an extra cost benefit. Instead of just giving warm words

:55:21.:55:26.

to disabled people in this country, why doesn't he take aside his

:55:26.:55:28.

immovable Secretary of State and say to him it's time we thought

:55:28.:55:33.

again on this one? The move from disability living allowance to

:55:33.:55:36.

personal independence payments has been an exercise of huge

:55:36.:55:39.

consultation, with the disability lobbies, to try to make sure that

:55:39.:55:43.

we get this right. The fact is there are hundreds of thousands of

:55:43.:55:47.

people on DLA, who have never had a recheck since they started to take

:55:47.:55:51.

on that benefit. There are many others on disability living

:55:51.:55:55.

allowance and I know this as a parent who filled out the form

:55:55.:56:00.

myself, who have to fill out reams without getting a proper medical

:56:00.:56:03.

check that would get them the benefit quicker. We are moving from

:56:03.:56:11.

an out-of-date system to a new that will help disabled people.

:56:11.:56:21.
:56:21.:56:29.

Selective dor sal rhizoo -- dorsal operations are only available

:56:29.:56:33.

outside the NHS. Will the Prime Minister look at this situation and

:56:33.:56:36.

help the families who are raising money for their children to have

:56:36.:56:41.

this operation across the country get NICE to change their mind?

:56:41.:56:45.

will look closely at this. I quite understand, as I said one moment

:56:45.:56:49.

ago, as a parent of a very disabled child, if there was anything you

:56:49.:56:53.

could do to get that child out of the wheelchair you would want that

:56:53.:56:57.

to happen. I've looked at this case. NICE actually says this operation

:56:57.:57:01.

is a treatment option for some children and young people, but it

:57:01.:57:03.

does caution against the potentially serious complications,

:57:03.:57:07.

because it's an irreversable operation and so there are risks

:57:07.:57:10.

involved. I'll look very carefully and see if there is anything more

:57:10.:57:20.

than NICE should consider. Prime Minister always advises the

:57:20.:57:23.

trade unions to go for remembering sillation and in the interests of

:57:23.:57:27.

fairness can I ask you to speak to his new Health Secretary and say

:57:27.:57:31.

would he involve himself in the dispute in Northumbria healthcare

:57:31.:57:34.

and ask their board to do what the people are doing and refer their

:57:34.:57:41.

dispute to the NHS Staff Centre for Resolution. He will have been

:57:41.:57:45.

listening carefully and I'm sure he will be able to discuss it with the

:57:45.:57:49.

honourable gentleman. I think it's very important that motorists have

:57:49.:57:56.

the right to renew their car tax at the Post Office, if they don't have

:57:56.:58:00.

internet access. The DVLA contract is up for renewal soon. Will the

:58:00.:58:05.

Prime Minister make sure it stays with the Post Office? I think he

:58:05.:58:08.

makes an important point, particularly representing, as he

:58:08.:58:11.

does, a far-flung rural constituency with people living

:58:11.:58:13.

across a number of different islands. I'm sure the Business

:58:13.:58:17.

Secretary will have been listening to what he says, although there's a

:58:17.:58:20.

limited amount of interference into contracts like these that can the

:58:20.:58:26.

Government can make. Does the Prime Minister have full confidence in

:58:26.:58:32.

his police and crime commissioner in Hampshire? What I would say

:58:32.:58:35.

about the commissioners is we haven't yet had the elections. We

:58:35.:58:39.

are going to have elections in November. I think it's a very good

:58:39.:58:42.

opportunity to broadcast from this House what an important set of

:58:42.:58:48.

elections these are. I want to see a new form of accountibility, it

:58:48.:58:50.

coming through our policing forces. I think it's an excellent reform

:58:51.:58:55.

and I'm sure one that many people want to turn out and vote and I

:58:55.:59:02.

hope vote for their local Conservative candidate. Over the

:59:02.:59:05.

summer, a number of commuters in my constituency suffered flooding and

:59:05.:59:10.

we were flooded in part because our drainage dykes are not cleared out,

:59:10.:59:14.

because the boards fear prosecution under conservation habitat

:59:14.:59:17.

legislation. Will the Prime Minister meet with his new

:59:17.:59:21.

Environment Secretary and take away this threat of prosecution so that

:59:21.:59:25.

drainage dykes that were built and dug to protect property, can do

:59:25.:59:29.

their job? As someone who represents a constituency that has

:59:29.:59:32.

been subjected to flooding, I know how many frustrations there can be

:59:32.:59:37.

in local communities when things that need to be done don't get done

:59:37.:59:40.

quickly enough. Sometimes that is the fault of different agencies.

:59:40.:59:43.

Sometimes it's the fault of landowners and locals authorities.

:59:43.:59:46.

All sorts of issues have to be crunched through, but I'm sure the

:59:46.:59:52.

Secretary of State will have been list being -- listening carefully.

:59:52.:59:55.

Can the Prime Minister confirm with no ifs or buts that there will be

:59:55.:00:00.

no third runway at Heathrow Airport whilst he leads his party? Clearly,

:00:00.:00:04.

while I do believe we need to establish a form of review that

:00:04.:00:08.

will bring parties together and make a decision about airport

:00:08.:00:15.

capacity, I will not be breaking my manifesto pledge. A letter from and

:00:15.:00:20.

a meeting with the Secretary of State for Defence has confirmed

:00:20.:00:23.

that the seabgd battalion, the Royal regiment of Fusiliers is the

:00:23.:00:29.

only one that should not have been cut on military grounds. Instead,

:00:29.:00:36.

what did happen was the further criteria that regimental losses be

:00:36.:00:42.

capped to one battalion, thus saving more other battalions in

:00:42.:00:46.

Scotland. Would the Prime Minister meet with me and others from across

:00:46.:00:54.

the House to discuss this issue? I'm very happy to around a meeting

:00:54.:00:57.

between my friend and the Defence Secretary and others. I think it's

:00:57.:01:01.

right to see the Army changing the structure not in the overall size,

:01:01.:01:06.

because with 82,000 regular soldiers and 30,000 territorials,

:01:06.:01:09.

the Army won't be changing in its overall size. It was difficult and

:01:09.:01:13.

it is difficult to do that in a way that respects regimental decisions

:01:13.:01:17.

and issues that I know a number of honourable members hold very dearly

:01:17.:01:20.

and it's important we do that across the United Kingdom. That is

:01:20.:01:23.

what the Government has set out, but I'm happy to arrange that

:01:23.:01:33.
:01:33.:01:36.

Comes to an end on a point of order, first PMQs in the new parliamentary

:01:36.:01:42.

season. The economy dollnating the exchanges between the two sides, as

:01:42.:01:49.

expected. We'll come to analysis of that in a

:01:49.:01:53.

moment but first, we'll hear what you thought of this exchange.

:01:53.:01:56.

the comments were about the economy - whoever and whichever party you

:01:57.:02:02.

support. So Diane from Truro, Cornwall said, "A reshuffle that

:02:02.:02:05.

failed to address the economic woes or failed economic policies was

:02:05.:02:11.

doomed to quickly break down. Ed Miliband left off from the break

:02:11.:02:17.

with a strong performance today" but heather said, "His dither at

:02:17.:02:21.

the start of PMQs is lame. He should be scoring multiple goals

:02:22.:02:29.

against David Cameron. If he can't, Labour are sunk" this one, "What is

:02:29.:02:31.

Labour's plan? Ed Miliband says their economic plan is wrong, that

:02:31.:02:34.

the Prime Minister has been in for two-and-a-half year, yet this

:02:34.:02:40.

follows a 30-year spending binge which accelerated under Gordon

:02:40.:02:45.

Brown", from Nathan in Kent, "I am one of the few Tory Party members

:02:45.:02:49.

Grant Shapps inherited, although my membership does expire this month,

:02:49.:02:54.

Ed Miliband has made a stack point at PMQs. David Cameron has been in

:02:54.:02:57.

for two-and-a-half years. He can't keep blaming the last Government.

:02:57.:03:02.

We're not buying that excuse anymore." There we go, not sure if

:03:02.:03:08.

we should be helping the Conservative Party to recruit. That

:03:08.:03:16.

may be the way - before we come on to the less important analysis,

:03:16.:03:19.

let's just get out of the way immediately the big issue that was

:03:19.:03:24.

raised at PMQs, which was that the Prime Minister accused Mr Miliband

:03:24.:03:29.

of not being butch enough. Are you butch enough, Grant Shapps? Well, I

:03:29.:03:32.

think what he was probably trying to describe... I am not asking

:03:32.:03:38.

about that I am asking about you. Yes, yeah, yeah. You are? Of course.

:03:38.:03:42.

What evidence do we have to show this? Do you make coffee for

:03:42.:03:46.

anyone? I haven't gone about making coffee for other people. Does that

:03:46.:03:51.

count? You write under another name. That's not butch. That's a pen name.

:03:51.:03:59.

That's right. Michael Brown. Green. I thought he used to advertise cars

:03:59.:04:03.

on television. Look, I think the point he was trying to make is

:04:03.:04:05.

simple - you have a shadow Chancellor he doesn't want. He

:04:05.:04:08.

didn't ask for this man. He actually appointed somebody else

:04:08.:04:13.

who ended up not doing it, tried to appoint a second person, has ended

:04:13.:04:17.

up with his third choice. Who was the second one? Nick will fill us

:04:17.:04:21.

in with the detail. Maybe I have had too long on the is unlounger.

:04:21.:04:26.

Clearly Alan Johnson was the Shadow Chancellor. I think he tried then

:04:26.:04:32.

not to appoint Balls and delayed. I... How can I forget - he was

:04:32.:04:36.

trying to get his brother David back in and convince him to do it,

:04:36.:04:41.

and he refused to do it for the second time. Who told you that?

:04:41.:04:46.

didn't reappoint straight away. did. It was done within an hour. I

:04:46.:04:50.

understand there was a conversation. You may know better. Look, he

:04:50.:04:56.

wanted his brother to do it. He wouldn't. He has ended up with Ed

:04:56.:05:05.

Balls. In the Cabinet meetings Balls is disrespecting his leader

:05:05.:05:09.

on his Blackberry, not interested in anything he says, but back to

:05:09.:05:12.

the Blair-Brown division that dogged the last Government, we

:05:12.:05:15.

realised how divisive it was and how it affected the running of this

:05:16.:05:19.

country. Of course, if David Cameron was butch enough he might

:05:19.:05:23.

have taken on his Chancellor and put a new one in. I think the

:05:23.:05:26.

Chancellor is doing a job any person who wants to see this

:05:26.:05:29.

country avoid the Greek deficit crisis or what's happening in Spain

:05:29.:05:36.

where, you know, rates are six, 7% to borrow money... That's... We're

:05:36.:05:39.

1.5% here. We have come to the conclusion you cannot solve the

:05:39.:05:42.

debt crisis by spending more money. I have this question for you, which

:05:42.:05:46.

is this: when are we actually going to hear anything at all from Her

:05:46.:05:49.

Majesty's opposition about what you would do in Government? Not a

:05:49.:05:54.

single policy, nothing. You have asked the question. I raise the

:05:54.:05:59.

question. Normally what you would do is allow the person to answer.

:05:59.:06:02.

We have been very clear that if we were in Government now, we would

:06:02.:06:07.

put forward a plan for jobs and growth that include teampsrary cut

:06:07.:06:12.

in VAT... More borrowing. genuinely bring forward more

:06:12.:06:15.

investing. This Government talks about infrastructure and roads,

:06:15.:06:23.

planning, housing, and as Ed Miliband said today none of it has

:06:23.:06:28.

been delivered. A bank bonus tax of 50% and using that money to create

:06:28.:06:33.

jobs for young people and the construction of 25,000 new

:06:33.:06:37.

affordable homes. Those - wait a second. Let me finish - that would

:06:37.:06:41.

help get the economy growing again, but by getting people back to work

:06:41.:06:50.

and helping businesses succeed and pay tax would help get that down.

:06:50.:06:54.

Without the tax receipts flowing in and with the benefits bill going up,

:06:54.:06:57.

the Government ends up borrowing more, not less. We need to get the

:06:58.:07:02.

economy back on track if we're going to get the deficit down.

:07:02.:07:08.

come to you in a minute - I have not forgotten you're there. Ice-

:07:08.:07:12.

skating - I have to hold up - LAUGHTER

:07:12.:07:17.

A quick reply? All it is, is a list of more taxes and more spending

:07:17.:07:22.

because, hold on... A tax cut for ordinary families? A tax cut for

:07:22.:07:27.

small businesses. We know the tax cut would be about �12.5 billion,

:07:27.:07:30.

so more debt, higher taxes. The question is when we were two-and-a-

:07:30.:07:34.

half years into opposition people were saying, where are the detailed

:07:34.:07:37.

policies? What would you actually do in all of these areas of

:07:37.:07:41.

Government... She just gave you some detail. You might not like

:07:41.:07:45.

them. That's a different matter. Policies that'll help get the

:07:45.:07:49.

economy moving again and the recession in. We're in a double-dip

:07:49.:07:52.

recession, the longest since the Second World War, and the deficit

:07:52.:07:57.

is beginning to increase by 25% in the first four months of this year.

:07:57.:08:01.

You have those two problems, and they're related because without the

:08:01.:08:07.

jobs and growth, the deficit goes up. Rather than a few abstract...

:08:07.:08:12.

Can I bring in the - ALL SPEAK AT ONCE

:08:12.:08:17.

He's a very patient man. Someone said to me this morning that the

:08:17.:08:20.

real - we saw these exchanges on the economy, and the Government is

:08:20.:08:23.

in a difficult position on the economy at the moment. There is no

:08:23.:08:29.

growth. If the third quarter produces no growth as well, that's

:08:29.:08:32.

a really difficult position the Government finds itself in. It is,

:08:32.:08:36.

but you have just seen them absolutely double up on their

:08:36.:08:39.

economic strategy. Clearly Labour and a lot of people think that's a

:08:39.:08:43.

mistake. They came under a huge amount of pressure in the build-up

:08:43.:08:45.

to this reshuffle including business. Business groups were

:08:46.:08:49.

saying why aren't you delivering? I thought the strike thing about

:08:49.:08:52.

Prime Minister's Questions were those facts. Ed Miliband in fact

:08:52.:08:57.

deployed a trip used against Gordon Brown when he was Leader of the

:08:57.:09:01.

Opposition. I remember in 2008-09 David Cameron would say how many of

:09:01.:09:05.

this opposition have happened - and the answer was always nil because

:09:05.:09:09.

it's easy to announce policies, and they get frustrated, whether Lib

:09:09.:09:13.

Dem or Tories, where's it gone? I suspect David Cameron will go back

:09:13.:09:18.

to the office and say, why aren't we getting roads built? It's one of

:09:18.:09:23.

the reasons he's trying to bring someone in. You're right. It would

:09:23.:09:26.

be incredibly hard if there is no third quarter growth. Remember

:09:26.:09:30.

behind the scenes in Government there is confusion about whether

:09:30.:09:33.

employment statistics are giving the real picture or growth

:09:33.:09:36.

statistics. The growth statistics are down. Some people think they're

:09:36.:09:43.

wrong and slightly overstated. Is the economy flat or dropping? It

:09:43.:09:46.

will be interesting over the next six months to see which is giving

:09:46.:09:50.

us a proper view. Gordon Brown suffered from this. He had some

:09:50.:09:53.

growth statistics that looked very bad in 2009. Actually, they were

:09:53.:09:55.

revised up. The economy was doing just a little bit better than

:09:56.:10:01.

people at the time were saying. Does Labour have any idea how big

:10:01.:10:06.

the deficit could go? Because it will have - I take your point that

:10:06.:10:09.

you think things you'll do will bring back growth, and so therefore

:10:09.:10:13.

in the longer term the deficit starts to come down, but in the

:10:13.:10:16.

short run it seems to me it's impossible to deny that the deficit

:10:16.:10:21.

goes up. Do you have any idea by how much that deficit can go up

:10:22.:10:26.

before the bond markets simply say, you're not on? Interest rates rise.

:10:26.:10:30.

If you look at the plan Alistair Darling set out before the last

:10:30.:10:34.

election, that was to half the deficit during the course of this

:10:34.:10:37.

Parliament. This Government have set out to eliminate the structural

:10:38.:10:41.

deficit during the course of this Parliament. They haven't. They're

:10:41.:10:46.

now putting it back by two years and going to borrow at least �250

:10:46.:10:49.

billion more. Now you have the ratings agencies saying growth is

:10:50.:10:53.

as important as the deficit numbers because actually, as I have been

:10:53.:10:58.

saying, without growth you can't get the deficit down. Can I remind

:10:58.:11:03.

you that when Alistair Darling unveiled his plan Britain was on

:11:03.:11:06.

negative watch by the ratings agencies. We are on negative watch

:11:06.:11:11.

then, and could you tell me what was - what was our yield on ten-

:11:11.:11:17.

year bonds? Well, the yield on ten- year bonds has barely changed since

:11:17.:11:21.

the election. It's gone up. That's not true. The ten-year bonds

:11:21.:11:26.

Britain was paying, the yield was similar to Italy's at that time.

:11:26.:11:29.

Italy's have gone up because of... No, the timing was the same. We

:11:29.:11:34.

were paying a lot more. No. We weren't. The point I am trying to

:11:34.:11:37.

get - I understand it's a difficult thing to do. There comes a point

:11:37.:11:43.

when you can - a tipping point on the deficit, and the difficulty for

:11:43.:11:46.

Labour is if you're going to add to the deficit is to know when that

:11:46.:11:50.

tipping point would be. Let me say about the eurozone countries like

:11:50.:11:53.

Greece and Portugal and Spain and Italy - none of those countries

:11:53.:11:59.

have the flexibility that the UK has. We've pursued under the last

:11:59.:12:01.

Government and this Government quantitative easing to keep

:12:01.:12:06.

interest rates low. Our currency was depreciating, which you can't

:12:06.:12:11.

have in the eurozone, so Britain was never going to be like Greece,

:12:11.:12:16.

Italy or Portugal because we have that flexibility in the UK to...

:12:16.:12:22.

Just as well we didn't join the euro. Let me just say about

:12:22.:12:25.

quantitative easing - �300 billion of Government bonds have been

:12:25.:12:29.

bought by the Bank of England. That has kept our interest rates low and

:12:29.:12:32.

means we're not going to default because we have a buyer of last

:12:32.:12:36.

resort of our Government bonds. more thing, and I now want to talk

:12:36.:12:41.

about the King of the water, also known as Boris Johnson. I found it

:12:41.:12:47.

quite remark - I remember the days of the Tory wets, and they always

:12:47.:12:50.

criticised Mrs Thatcher in coded language which was kind of deniable

:12:50.:12:53.

- not Boris Johnson. No, I don't think we have ever seen anything

:12:53.:12:57.

quite like this. Totally out there. It's a clear challenge to Mr

:12:57.:13:01.

Cameron. Let's just run the tape on what he has been saying on this

:13:01.:13:06.

airport capacity business. I am not criticising David, who I like and

:13:06.:13:10.

admire hugely. All I am saying is they need to end the ambiguity.

:13:10.:13:15.

I'll say this more clearly if you want in the press conference. They

:13:15.:13:20.

need to end the ambiguity about Heathrow because at the moment a

:13:20.:13:24.

lot of people think that there's going to be a U-turn and that

:13:24.:13:28.

they're sort of gearing up to ditch the commitment against the third

:13:28.:13:32.

runway. They're going to put another huge runway in the middle

:13:32.:13:37.

of London's western suburbs when that is not what the City needs.

:13:37.:13:42.

Boris Johnson wearing his helmet in case there are any in-coming

:13:42.:13:44.

missiles from Number Ten Downing Street. What he's doing there -

:13:44.:13:46.

he's putting the Prime Minister's feet to the fire and saying, all

:13:46.:13:50.

right. I accept you're not going to come it for a third runway this

:13:50.:13:53.

side of the next election. I want you to rule it out forever, which

:13:53.:13:59.

is the question the Labour MP asked in the PMQs very cleverly, and it's

:13:59.:14:04.

the last thing the Prime Minister wants to answer. Absolutely. John

:14:04.:14:07.

McDonald quoted back - he was quoting David Cameron back at

:14:07.:14:12.

himself when Cameron in, sorry 2009 at a Conservative Party event said,

:14:12.:14:19.

"No third runway no, if's no, but's." Zach's constituency.

:14:19.:14:25.

nearest equivalent to "read my lips", the famous quote by George

:14:25.:14:32.

Bush Senior before he raised tax. Would he stick to that as

:14:32.:14:37.

Conservative leader, cleverly worded, beyond the next election?

:14:37.:14:43.

The Prime Minister said, "I won't break my manifesto pledge," which

:14:43.:14:48.

means no runway before 2015, which in truth he has to say because of

:14:48.:14:51.

political reasons, and the Lib Dems wouldn't let him do it even if he

:14:51.:14:58.

wanted to change his mind. You're right. The row Boris Johnson wants

:14:58.:15:02.

is to put people out of their misery. They're not going to

:15:02.:15:05.

because all the parties are in a bind about runways. The trick David

:15:05.:15:08.

Cameron will now try to perform, having moved Justine Greening, is

:15:08.:15:14.

to have an independent commission on this. Sure, which won't report

:15:14.:15:17.

in the after the next election. don't know. I think they'll report

:15:17.:15:21.

before. I don't actually know the answer to that question. But you

:15:21.:15:26.

see, the equivalent of what they're trying do is what happened on high-

:15:26.:15:29.

speed rail where the Transport Secretary got the Tories onboard so

:15:29.:15:33.

whoever was in Government after the next election, it won't happen.

:15:33.:15:39.

Grant Shapps, are you in any doubt that Boris Johnson is running to be

:15:39.:15:43.

his successor? Boris said he isn't, so I'll take his word for it.

:15:43.:15:47.

would you do that? He's an honourable man. A man who was

:15:47.:15:51.

editor of the Spectator, promised not to become the Tory MP and

:15:51.:15:56.

within six months was the MP for Henley. No-one can second-guess

:15:56.:16:00.

Boris Johnson's mind. You're right. When you see these clips of Boris

:16:00.:16:03.

saying these things, don't forget, the Mayor of London is campaigning

:16:03.:16:08.

for his own airport solution which is the Thames estuary. You really

:16:08.:16:12.

don't think Boris is running to be the next leader? He says he's not.

:16:12.:16:22.
:16:22.:16:26.

You'll have to run against him, I He didn't deny it. On that crash

:16:26.:16:33.

revelation, of naughty, we say goodbye to Nick. Grant Shapps for

:16:33.:16:39.

next leader. Unemployment seems to be rarely out of the news at the

:16:39.:16:42.

moment, but is the media's, and for that, matter the Government's,

:16:42.:16:44.

fixation on youth unemployment overlooking a more fundamental

:16:44.:16:46.

problem? Colin Crooks is a social entrepreneur with 20 years'

:16:46.:16:49.

experience in creating jobs for unemployed people and he argues

:16:49.:16:52.

that by concentrating on the young we ignore a whole generation of

:16:52.:16:54.

unemployed men and women who've been left behind without any

:16:54.:17:04.
:17:04.:17:16.

prospect of work. Here's his Soapbox. Unemployment is a much

:17:17.:17:20.

more profound issue that politicians like to admit. It's

:17:20.:17:23.

especially concentrated in areas like this, which frankly they try

:17:23.:17:28.

to ignore and where the people have no voice. I believe that just

:17:28.:17:34.

concentrating on youth unemployment is a profound mistake. A generation

:17:34.:17:39.

of our people were brought up to work in the local factory. They

:17:39.:17:44.

weren't educated for anything else. As these jobs dried up, they were

:17:44.:17:51.

left completely stranded. In some parts of the country unemployment

:17:51.:17:57.

reaches 50% and even 60% and multiple Government initiatives

:17:57.:18:02.

have made very little difference to them. For me, these people

:18:02.:18:06.

represent a let-down generation and they are the victims of a terrible

:18:06.:18:10.

double whammy. There are up to 10 million people without a GCSE to

:18:10.:18:14.

their name. That means they can't even apply for most of the jobs

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

that are on offer. The secret to employibility and education is

:18:25.:18:29.

attitude. A child's attitude is largely determined by their parents.

:18:29.:18:33.

Home life, not school, is largely responsible for up to 90% of a

:18:33.:18:39.

child's educational outcome. Any investment in jobs and skills for

:18:39.:18:48.

parents will have a massive impact on their children. You Rennes

:18:48.:18:53.

social enterprises and create jobs in over 20 years. I know places

:18:53.:18:57.

like Eco Computers is one of social enterprises that kep hem people get

:18:57.:19:02.

back into work. They don't want charities or grants, but they just

:19:02.:19:05.

want contracts with real clients and they can create real work and

:19:05.:19:13.

real training. Why are those jobs? Typical government schemes

:19:13.:19:17.

concentrate on K Vs and interview skills, but they miss the point.

:19:17.:19:23.

They are honed at work, not in a classroom. The Government, local

:19:24.:19:27.

authorities and big business need to actively contract with

:19:27.:19:31.

organisations such as these that really understand the issues that

:19:31.:19:34.

people face and actively want to create jobs for the unemployment.

:19:35.:19:42.

If we do this we will breathe life back into our communities and

:19:42.:19:47.

create positive adult role models and prospects for our young people.

:19:47.:19:52.

Colin joins us now. Taking up the points in that film, the jobs are

:19:52.:19:55.

needed, so do you think in the economic situation that the country

:19:55.:19:59.

is in that there is the capacity for the sort of jobs to take on the

:19:59.:20:03.

people you've described? Absolutely. I've spent 20 years employing these

:20:03.:20:08.

people and creating jobs out of nothing and it's contracts and

:20:08.:20:12.

about getting local authorities and Government deciding to buy from

:20:12.:20:15.

social enterprises that work with these people. We don't want grants.

:20:15.:20:20.

What I want is a contract. I want Government departments to say, "I

:20:20.:20:23.

will buy a service from you, whether or not it's supplying

:20:24.:20:29.

toilet rolls or cleaners or whether it's recycling, I will buy from you

:20:29.:20:33.

in your area where you create people who have been oppressed and

:20:33.:20:38.

depressed for 20 years." Why isn't it happening? The bureaucracy in

:20:38.:20:42.

this system is phenomenal and the Government hasn't focused. The

:20:42.:20:45.

Government thinks about new deals and work programmes. Do they work?

:20:45.:20:48.

Barely, to be honest. It doesn't touch these people. It touches the

:20:48.:20:51.

people at the top who would probably get a job in any case. It

:20:51.:20:59.

does not touch the people at the bottom who are struggling. None of

:20:59.:21:02.

these work. We need for them to spend the money they are going to

:21:02.:21:05.

spend. I don't need any extra borrowing or loans. I want the

:21:05.:21:09.

Government to say, "We are already buying services for this building,

:21:09.:21:12.

why don't we buy them from this company here that's employing

:21:12.:21:17.

people who are hard to employ?" Grant Shapps, why isn't it

:21:17.:21:21.

happening? It's frustrating to hear when it doesn't happen. I know

:21:21.:21:24.

there is a nursery in my constituency that a contract with

:21:24.:21:28.

the local authority and they are employing people who otherwise

:21:28.:21:31.

would find it difficult to be in the market. I've seen it work. In

:21:31.:21:35.

my last role, partly as a local Government minister, I spent some

:21:35.:21:40.

time on this finding out why it was that councils feel they have to

:21:40.:21:44.

impose such incredible prequalification question airs to

:21:44.:21:47.

sell anything to that -- questionnaires to sell anything to

:21:47.:21:51.

that local Government and when a business can come in and be more

:21:51.:21:54.

flexible. It means the local authority buys uncome petively and

:21:54.:21:58.

it doesn't go to a social enterprise. Because they've never

:21:58.:22:01.

been good as procurement. They've been talking about for years. Why

:22:01.:22:07.

is not changing? It's like biting through, I don't know, what, to get

:22:07.:22:10.

to the people to make the changes. I was involved in trying to cut

:22:10.:22:14.

down the size of the application. We are saying to local authorities

:22:14.:22:18.

and you maybe come across this, they should not introduce these

:22:18.:22:21.

questionnaires if what they are buying isn't more than a certain

:22:21.:22:26.

figure which could be several hundred,000 pounds, but they will

:22:26.:22:31.

be directly involved in it and you don't want to contract wider still.

:22:31.:22:35.

We recognise the problem which isn't being dealt with. What about

:22:35.:22:38.

Colin's point that actually the programmes that the Government has

:22:38.:22:43.

put on track to try to employ people they barely work? I think

:22:43.:22:49.

you have to do a combination of things. You can do a programme -

:22:49.:22:53.

you made a great point, governments have tried over many years and

:22:53.:22:56.

guess what, it doesn't really help. You have to do it all together. One

:22:56.:23:01.

of the things I think will help is the lasting legacy is the universal

:23:01.:23:04.

credit and it's to Iain Duncan Smith's credit it's been brought in,

:23:04.:23:07.

because it means when you go to work you are better off through

:23:07.:23:11.

work and you have to do that as well as put in targeted support and

:23:11.:23:15.

I think again that offers the best opportunities to start to make the

:23:15.:23:19.

schemes actually work and be efficient to produce and create,

:23:19.:23:23.

because people get paid and it's worth doing. Unemployment is coming

:23:23.:23:27.

down from the figures, down by 46,000. Do you think that is a fair

:23:27.:23:31.

reflection of what is going on out there, particularly with - no?

:23:31.:23:35.

in the slightest. What is actually happening is it's coming down

:23:35.:23:40.

because people are paut into part- time jobs. If you look under --

:23:40.:23:45.

being put into part-time jobs, if you look under that, 30% of our

:23:45.:23:49.

working population, 10 million, don't work, so it's a bigger number.

:23:49.:23:52.

A lot would like to, but they're not counted? I meet them every day.

:23:52.:23:57.

They want a job. Is it the wrong emphasis focusing so much attention

:23:57.:24:00.

on the youth which is the point made by Colin in terms of looking

:24:00.:24:04.

for role models? You should be looking at the lost generation?

:24:04.:24:07.

thought that was an interesting point, because obviously

:24:07.:24:10.

unemployment at any age is a serious problem. The reason that

:24:10.:24:16.

politicians tend to focus on youth is because if you allow early on in

:24:16.:24:20.

someone's life worklessness to become a way of life that that

:24:20.:24:24.

becomes a problem throughout and the point is wider, which is if you

:24:24.:24:28.

look at the inactive economic population, who are inactive, it

:24:28.:24:33.

may well go much wider and things like making sure that it quite

:24:33.:24:36.

simply always pays you when you go out and do an extra hour's work you

:24:36.:24:40.

will always be better off than the welfare equivalent. Those things

:24:40.:24:45.

are as important. You would agree with this, Rachel, in terms of work

:24:45.:24:49.

paying? Of course. That's why tax credits were always important to

:24:49.:24:53.

get people to go back to work, but we have the real problem and Colin

:24:53.:24:59.

highlights it, underemployment and the difference between the GDP

:24:59.:25:04.

numbers that show us in recession and then the others that are

:25:04.:25:07.

decreasing, that some people only work part-time, because the work

:25:07.:25:14.

isn't really there and there is the creation of jobs, but not real --

:25:14.:25:18.

really giving people an income, but talking also about contracts for

:25:18.:25:22.

social enterprises. It's also an issue for small businesses in and

:25:22.:25:26.

around the country. Small businesses as well can't get

:25:26.:25:30.

contracts either from local Government or central Government

:25:30.:25:32.

because of the bureaucracy and they need to have the track records of

:25:32.:25:39.

success and the big contracts. It's a catch 22 situation. Colin, thank

:25:39.:25:45.

you very much. While political attention here in the UK is on

:25:45.:25:48.

David Cameron's reshuffle and the return of MPs to Westminter, over

:25:48.:25:55.

in the United States the race for the White House is unde rway. Last

:25:55.:25:57.

week, the Republicans held their convention, with a starring role

:25:57.:26:00.

for Ann Romney, the wife of the Republican candidate, Mitt Romney.

:26:00.:26:03.

This week, it's the turn of the Democrats, and last night Barack

:26:03.:26:13.
:26:13.:26:20.

Obama's wife, Michelle made a keynote speech. This is the man

:26:20.:26:29.

America needs. This is the man who will wake up every day with the

:26:29.:26:33.

determination to solve the problems that others say can't be solve, to

:26:33.:26:37.

fix what others say is beyond repair. This is the man who will

:26:37.:26:41.

work harder than anyone so we can work a little bit hard. I can't

:26:41.:26:45.

tell you what will happen over the next four years, but I can only

:26:45.:26:50.

stand here tonight as a wife, mother and grandmother, and an

:26:50.:27:00.
:27:00.:27:11.

American and make you some solemn commitment - this man will not fail.

:27:11.:27:19.

We must work like never before. And we must once again come together

:27:19.:27:26.

and stand together with a man we can trust. That's to keep moving

:27:27.:27:32.

this great country forward. My husband, our President, Barack

:27:32.:27:42.
:27:42.:27:42.

Obama. Thank you. God bless you. God bless America. That's the two

:27:42.:27:46.

First Ladies for the election campaign. It's very American. The

:27:46.:27:50.

speeches are pretty much devoid of substance. It's all emotion and

:27:50.:27:54.

bigging up your husband. Could you see that happening in this country,

:27:54.:27:57.

Mrs Miliband going in front of a Labour conference and saying these

:27:57.:28:03.

things about Ed? I just think it would be nice to see more women in

:28:03.:28:08.

front-line politics. That's not the issue. I'm talking about spouses

:28:08.:28:11.

here. If it's Hillary Clinton running it will be Bill that will

:28:11.:28:16.

have to do it. Should spouses play this role? I would like to come

:28:16.:28:20.

back to my point, because what we don't see in America or the UK or

:28:20.:28:25.

any countries are enough women. are only seeing them as women

:28:25.:28:29.

because they're married to men. are seeing them as the appendage of

:28:30.:28:35.

their husbands and we did see it a bit in the UK election in 2010.

:28:35.:28:41.

Will Mrs Mill -- Mrs Miliband do something like that? I very much

:28:41.:28:45.

doubt it. I with like to see the women making their decisions rather

:28:45.:28:48.

than supporting. One day I'll get them to answer the question I'm

:28:48.:28:52.

asking. Before we go, just time - we can't do the competition, so we

:28:52.:28:56.

Andrew Neil and Jo Coburn present live coverage of Prime Minister's Questions and the latest political news, interviews and debate. They are joined by the newly promoted Conservative Party Chairman, Grant Shapps and Rachel Reeves, shadow chief secretary to the Treasury, to discuss the latest developments in the government reshuffle.


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