18/01/2013

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:00:44. > :00:48.Good morning, welcome to the Daily Politics. The hostage crisis is

:00:48. > :00:52.still unfolding this morning, but some foreign workers, including

:00:52. > :00:55.British Aris ditches, have been freed, with other still being held

:00:55. > :00:58.by terrorists as Algerian forces continue their controversial

:00:58. > :01:02.operation. -- including British hostages.

:01:02. > :01:06.It was the most long awaited speech of modern political times, but

:01:06. > :01:10.instead of talking Europe in Amsterdam, the Prime Minister had

:01:10. > :01:14.to make a statement on Algeria in the Commons this morning. We will

:01:14. > :01:18.show you what he said about Algeria and what he was planning to say on

:01:18. > :01:22.Europe. And after this former minister

:01:22. > :01:28.compared his old boss Michael Gove to a sitcom character, unnamed

:01:28. > :01:38.government sources called Tim Loughton a lazy, incompetent

:01:38. > :01:40.

:01:40. > :01:44.narcissist. What is going on at the All that in the next hour. With us

:01:44. > :01:49.for the first half of the programme, Spectator editor Fraser Nelson, and

:01:49. > :01:52.former Liberal Democrat press secretary and editor of an online

:01:52. > :01:57.newspaper for young people like me, Miranda Green. What are you

:01:57. > :02:00.laughing at? I would not dream of it! The Prime Minister should have

:02:00. > :02:05.been in Amsterdam this morning unveiling his plan to repatriate

:02:05. > :02:10.powers from Brussels and maybe even give us a promise of a euro

:02:10. > :02:15.referendum. Instead, at 11am, he made a statement to the House about

:02:15. > :02:18.the unfolding hostage situation in Algeria. Mr Speaker, during the

:02:18. > :02:23.course of Thursday morning, the Algerian forces mounted an

:02:23. > :02:28.operation. Mr Speaker, we were not informed of this in advance. I was

:02:28. > :02:31.told by the Algeria Prime Minister while it was taking place. He said

:02:31. > :02:34.the terrorists had tried to flee, that they judged there was an

:02:35. > :02:39.immediate threat to the hostages, and had felt obliged to respond.

:02:39. > :02:43.When I spoke to the Algerian Prime Minister last night, he told me

:02:43. > :02:47.this first operation was complete, but this is a large and complex

:02:47. > :02:51.site and they are still pursuing terrorists and possibly some of the

:02:51. > :02:55.hostages in other areas of the site. The Algerian Prime Minister has

:02:55. > :02:59.told me this morning they are looking at all possible routes to

:02:59. > :03:03.resolve the crisis. Mr Speaker, last night the number of British

:03:03. > :03:08.citizens at risk was less than 30. Thankfully, we now know that number

:03:08. > :03:11.has been quite significantly reduced, and I'm sure the House

:03:11. > :03:16.will understand why, during an ongoing operation, I cannot say

:03:16. > :03:21.more on this at this stage. That was the prime minister leaving many

:03:21. > :03:25.questions unanswered, despite that statement, so let's talked to Chris

:03:25. > :03:30.Mason, who I hope can tell us more. He is in a very snowy London, as

:03:30. > :03:36.you can see. The Prime Minister did give us more information, but I do

:03:36. > :03:41.not yet have a clear picture of how many hostages have been liberated,

:03:41. > :03:45.how many are still in captivity, and how many have become fatalities.

:03:45. > :03:48.Yes, there are two strands to the uncertainties in all of this.

:03:48. > :03:52.Firstly, there has been repeated statements from the Foreign Office

:03:52. > :03:56.and from Downing Street that have emphasised that they have a limited

:03:57. > :04:00.amount of information, and then added to that is the inevitable

:04:00. > :04:03.caution from the Prime Minister in how much of the information he is

:04:03. > :04:07.aware of he is willing to make public, given that this is an

:04:07. > :04:12.ongoing situation, given that there still are a good number of hostages,

:04:12. > :04:18.including a good number from the UK, who are still being held. The key

:04:18. > :04:20.fact that we learnt in the statement from the Prime Minister,

:04:20. > :04:25.and he stood on his feet taking questions now, one hour into taking

:04:25. > :04:29.questions from backbenchers, is that last night less than 30

:04:29. > :04:34.Britons were being held hostage. Now that number is, as we heard,

:04:34. > :04:40.significantly reduced, but we do not have a specific number. Chris,

:04:40. > :04:46.do we have any idea yet of British casualties? No. In specific terms,

:04:46. > :04:51.we do not, beyond the initial announcement that a Briton had been

:04:51. > :04:55.killed, beyond hearing that there was a man from Northern Ireland, a

:04:55. > :05:00.career of an Irish passport, he was freed, we do not have any more

:05:00. > :05:04.information. As I say, those two strands to the uncertainty mean

:05:04. > :05:08.that we are learning a limited amount in the statement in the last

:05:08. > :05:13.hour. There is an expectation, the Prime Minister said, that he hopes

:05:13. > :05:15.he may be able to say a little bit more later today, but there is real

:05:16. > :05:19.understandable nervousness within the Foreign Office about too much

:05:19. > :05:24.information coming out too soon and potentially imperilling the lives

:05:25. > :05:29.of those who are still there. Frustration, too, Andrew, about the

:05:29. > :05:32.procedure adopted by the Algerian government, the Algerian forces, a

:05:32. > :05:35.sense that the Prime Minister really wanted to hear in advance

:05:36. > :05:40.that they were going to attempt a rescue mission, and he only found

:05:40. > :05:43.out what it was under way once it was already under way to. There was

:05:43. > :05:46.a clear sense in the Prime Minister's tone that he would have

:05:46. > :05:52.liked to have known in advance, and that British special forces could

:05:52. > :05:57.have been involved, they were certainly available. Thank you very

:05:57. > :05:59.much for that update, very interesting, on the ongoing hostage

:06:00. > :06:04.situation with British lives still at stake, and the developing

:06:04. > :06:09.relationship between Britain and Algeria. To discuss the crisis, we

:06:09. > :06:14.are joined by the chair of the foreign affairs select committee

:06:14. > :06:17.Richard Ottaway. Are you surprised that the Algerians went ahead with

:06:17. > :06:24.this operation without even informing the British or other

:06:24. > :06:28.countries involved, never mind involving them? Good morning. No. I

:06:28. > :06:33.think it is barely understandable, when you have got a clandestine

:06:33. > :06:37.operation going on that you do not give notice in advance, much as

:06:37. > :06:42.other countries, no matter how much they may be affected, may want to

:06:42. > :06:46.be involved. As far as the special forces are concerned, the Algerians

:06:46. > :06:50.are, you know, they have got a pretty efficient military machine,

:06:50. > :06:53.and I'm sure they have the capacity to conduct the operation themselves.

:06:53. > :06:57.Frankly, it is far from certain that if the SAS had been involved

:06:57. > :07:01.it would have had a different outcome. We do not seem to have

:07:02. > :07:05.much influence over Algeria. They are not a member of the EU, we have

:07:05. > :07:09.a good bilateral relationship with them, there is no lack of harmony

:07:09. > :07:12.in our relationship with Algeria at the moment, and this is a very

:07:12. > :07:17.complex, fast-moving operation here, and I think we have got to give

:07:17. > :07:23.them the benefit of the doubt. you in any doubt... Last night on

:07:23. > :07:26.BBC One's This Week, Kofi Annan said he was in no doubt that the

:07:26. > :07:31.terrorist action in Algeria was linked to the French intervention

:07:31. > :07:35.in Mali. What is your view? I think this is something we have got to

:07:35. > :07:39.look at now. There is a whole change in the character of the

:07:39. > :07:44.region going on here as Al-Qaeda have been moved out of Afghanistan

:07:45. > :07:49.and Pakistan, moving into Somalia, Nigeria, Mali, Algeria, and I think

:07:49. > :07:53.we have got to rethink our strategy here, and much closer co-operation

:07:53. > :07:56.is required between the intelligence services, military

:07:56. > :08:00.organisations, and diplomatically. Although some people do not like

:08:00. > :08:04.the phrase, you get the sense this is the latest front in the war on

:08:04. > :08:07.terror. That is right, and I think it is really interesting that

:08:07. > :08:12.everyone was so excited about the Arab Spring, but partly because

:08:12. > :08:17.they got a bit of democracy in the region might take the pressure

:08:17. > :08:22.towards Islamism away, but actually, the Arab Spring having happened,

:08:22. > :08:25.this explosion of Islamist activity has taken place anyway, so it is an

:08:25. > :08:30.enormous challenge not just for the West, but for the rest of Africa.

:08:30. > :08:35.The one thing we learn is that it is, in some way, a knock-on effect

:08:35. > :08:39.from events in Libya, because after the Gaddafi regime collapsed, the

:08:39. > :08:43.number of these people had been closer to Gaddafi moved south.

:08:43. > :08:48.Apparently, they raided all the arms dump, so they were incredibly

:08:48. > :08:52.well armed, they moved into Mali and dominated the north of that,

:08:52. > :08:55.enough to be able to move south and threaten the capital. I think what

:08:55. > :08:58.we are seeing, what we had thought was a fairly straightforward

:08:58. > :09:04.operation of Libya that got rid of Colonel Gaddafi has started a chain

:09:04. > :09:08.reaction. The first phase was having these nomadic mercenaries,

:09:08. > :09:14.moving south with their heavy armour, and the Algerian government

:09:14. > :09:18.said that the attempt at the gas terminal was in response to the

:09:18. > :09:20.French action in Mali. It looks right now as if this was a well

:09:20. > :09:25.organised and deliberate retaliation to the French action,

:09:25. > :09:28.which raises the question, if this is how they are going to respond,

:09:28. > :09:34.not by attacking French soldiers but raiding Western interests and

:09:34. > :09:38.the rest of Africa, then similar fields in Morocco, Libya and

:09:38. > :09:41.Nigeria would also be at risk. I think David Cameron is realising

:09:41. > :09:46.that Libya was the start of something but we are not seen the

:09:46. > :09:50.end. I have just been told that Alex Salmond has been discussing

:09:50. > :09:54.the Scottish hostages in the gas compound, the Scots have been freed,

:09:54. > :09:59.we are waiting to hear about the rest of the British hostages who

:09:59. > :10:02.are still there. Should we be giving more, and by week, I do not

:10:02. > :10:08.just mean Britain, but the European Union and the United States, should

:10:08. > :10:12.we be giving the French more support in Mali? Well, we have a

:10:13. > :10:16.bilateral agreement with the French, and we would give them whatever

:10:16. > :10:20.they asked for, because we have undertaken to do so in a military

:10:20. > :10:24.treaty. If they ask for blitz on the ground, would we give them

:10:25. > :10:28.that? -- Boots. There is co- operation with the French in the

:10:28. > :10:31.treaty, it is not like NATO where an attack on one is an attack on

:10:31. > :10:35.the other, but there is an understanding that these matters

:10:36. > :10:40.are under discussion. We would not give them everything they would ask

:10:40. > :10:44.for, we would consider in a friendly way what they ask for, but

:10:44. > :10:49.if they ask for the Black Watch, we would not give them that without a

:10:49. > :10:52.big debate, would we? I did not think it has got to that point at

:10:52. > :10:56.the moment, and indeed we would be reluctant to put feet underground

:10:57. > :11:01.just when we will be drawing troops out of Afghanistan. -- feet on the

:11:01. > :11:07.ground. So are the French. They had a much smaller commitment and are

:11:07. > :11:12.already out now. You know, you actually have to watch and see what

:11:12. > :11:17.is going on in both these operations. If I can go back way

:11:17. > :11:20.point raised by both Fraser and Miranda about has Libya triggered

:11:20. > :11:24.something, if you urge democracy on countries like Libya and Egypt, you

:11:24. > :11:28.have got to accept what it throws up. What we have got there is

:11:28. > :11:31.moderate Islam, and these are Islamist we can and have to do

:11:31. > :11:35.business with. It does not necessarily follow that radical

:11:35. > :11:39.Islam will come out of that. I think actually you have got a more

:11:39. > :11:44.sinister operation going on which is opportunistic, and I think they

:11:44. > :11:48.are making a fair point, but I think it would be a mistake to say

:11:48. > :11:53.that because Islamic democracy has arrived, that means fundamentalist

:11:53. > :11:57.Islam will follow. But it certainly takes the lead of other Islamist

:11:57. > :12:01.pressures. We in the West like these countries with nice, tidy

:12:01. > :12:05.borders, but that is not the way they work, tried to move across

:12:05. > :12:09.borders, and people are saying in Syria, let's help the rebels, but

:12:09. > :12:13.we are not thinking about the knock-on effects. I think we are

:12:13. > :12:17.too quick to think, let's get rid of the bad guy, without thinking of

:12:17. > :12:22.the consequences. That is exactly the point I was going to make, it

:12:22. > :12:26.is also to do with these being very mobile people, moving across a

:12:26. > :12:30.continent to find the most convenient and conducive home from

:12:30. > :12:36.which to export terrorism. Clearly, Mali became something akin to

:12:36. > :12:43.Afghanistan. There is no Islamist democracy in Algeria or Mali.

:12:43. > :12:50.is democracy in Algeria. His there? Yes, you have a parliament and a

:12:50. > :12:54.government. We had a parliament in Moscow! Democracy comes in...

:12:54. > :12:59.certainly none in Mali, they had a military coup. Democracy comes in

:12:59. > :13:03.many forms. Going back to Syria macro, the reason the British

:13:03. > :13:08.government is hesitating about Syria, they are far from certain

:13:08. > :13:12.about who the opposition is now, its nature and its composition.

:13:12. > :13:15.Britain has endorsed them. We have endorsed the transitional council,

:13:15. > :13:20.which is not necessarily the same as the people fighting on the

:13:20. > :13:25.ground. So why have we endorse the transitional council if we do not

:13:25. > :13:29.know who they are? Because ultimately we do think that Assad

:13:29. > :13:33.will fall and we want to be in there, trying to influence them as

:13:33. > :13:37.soon as possible. You want to be on the winning side. We always want to

:13:37. > :13:40.be on the winning side. Listening to the Prime Minister today, he was

:13:40. > :13:45.talking in very general terms about the Islamic threat in Africa, and

:13:45. > :13:49.it was very resident of the language we use about Al-Qaeda in

:13:49. > :13:53.Afghanistan, these guys are a threat, they will come and get as

:13:53. > :13:59.later, and part of me wonders of Mali may be David Cameron's third

:13:59. > :14:04.war. Tony Blair at five, didn't he? Why should he hold back?! Thank you

:14:04. > :14:07.for being with us, Richard Ottaway. The PM's euros thoughts have been a

:14:07. > :14:12.long time coming, and thanks to events in Algeria, we will have to

:14:12. > :14:15.wait still longer. Well, not quite. Well-placed stories in this

:14:15. > :14:18.morning's newspapers of a sneak preview of the speech because they

:14:18. > :14:22.were handed out by Downing Street when they still thought the speech

:14:22. > :14:25.was going ahead. It was not cancelled until early in the

:14:25. > :14:28.evening. They reveal the Prime Minister plan to talk about his

:14:28. > :14:32.growing frustration with Europe, there's a surprise, highlighting

:14:32. > :14:36.three issues. First, the economic problems in the eurozone which are

:14:36. > :14:42.pushing Europe towards closer integration. Second, a crisis of

:14:42. > :14:45.European competitiveness, as other nations across the world saw ahead.

:14:45. > :14:51.Third, a gap between Europe and its citizens which is growing ever

:14:51. > :14:56.wider. That has led to a lack of democratic accountability and

:14:56. > :14:59.consents that is felt particularly acutely in Britain. Finally, he

:14:59. > :15:04.planned a stark warning, if we do not address these challenges, the

:15:04. > :15:14.danger is that Europe will fail and the British people will drift

:15:14. > :15:20.

:15:20. > :15:23.It is strange that we're able to tell you what is in a speech even

:15:23. > :15:27.though the speech will not be delivered this morning. Fraser

:15:27. > :15:33.Nelson, what do you make of the content of what he was planning to

:15:33. > :15:37.say? This was like a good Eurovision Song contest entry,

:15:37. > :15:42.something designed to resonate across borders. You have got to hit

:15:42. > :15:47.both the domestic and foreign audience. He was saying that Europe

:15:48. > :15:51.needs to reform and Britain is one of the good guys. You want us in

:15:51. > :15:57.the EU because we will be encouraged in this process that you

:15:57. > :16:01.all want. But there was not much detail. The key points in the

:16:01. > :16:08.speech are still those that James Forsyth outlined in the Spectator a

:16:08. > :16:13.couple of weeks ago. There will be re negotiation before 2018. That

:16:13. > :16:18.will be contingent on a Tory majority which is the biggest if in

:16:18. > :16:24.the whole equation. The tone of these excerpts that we have is

:16:24. > :16:31.quite Europe friendly? He is trying to have it both ways. He wants to

:16:31. > :16:39.feed red meat to his backbenchers, but he is also saying to pro-

:16:39. > :16:42.Europeans, if it gets better, we will stay in. Yes. The Prime

:16:42. > :16:50.Minister seems to me like somebody who is having a relationship crisis

:16:50. > :16:54.and taking bad advice from a friend in a pub. In this case, that friend

:16:54. > :16:59.is the wing of the party who is very hostile to Europe. They are

:16:59. > :17:05.saying, you have got to give them an ultimatum. That does not really

:17:05. > :17:11.work. That gets you into a negative situation. That alone would not

:17:11. > :17:16.have pleased a lot of his own backbenchers. No, and it was not

:17:16. > :17:21.intended to. The very fact that he wanted to find some random location

:17:21. > :17:29.in Europe to give the speech was a message that it was for the people

:17:29. > :17:38.back home and those people in Europe as well. He can dress it up

:17:38. > :17:44.however he wants, but his party will not like it. Do you know where

:17:44. > :17:48.he is on the referendum? Now it is mac. Fraser assured us this morning

:17:48. > :17:54.as many people have done that David Cameron does not want Britain to

:17:54. > :18:00.leave the European Union. He said so himself. Indeed. We take it on

:18:00. > :18:05.trust. It may be true. There is this danger of drifting out. Ed

:18:05. > :18:10.Miliband, to his credit, has expressed his very eloquently in

:18:10. > :18:17.the last few weeks. The problem is that his strategy to manage the

:18:17. > :18:19.situation of his own backbenchers is very risky. You introduce a

:18:19. > :18:25.referendum, this idea of renegotiation, which is very

:18:25. > :18:29.dangerous. It may not work. You may not be able to offer people

:18:29. > :18:35.something in a referendum that will satisfy at that particular wing of

:18:35. > :18:41.opinion. Then you have to offer them another referendum. It will

:18:41. > :18:45.keep us in a job! Why are we even speaking about this? It is all

:18:45. > :18:51.predicated on Mr Cameron winning an overall majority, not just getting

:18:51. > :18:55.back into power. The Liberal Democrats would not let him go down

:18:55. > :19:04.this road again. The bookies will not give you good odds on that at

:19:04. > :19:09.the moment. They will give you 4-1. It is more likely that Scotland

:19:09. > :19:14.will vote to go independent. It is more likely that Nick Clegg will be

:19:15. > :19:24.gone before Christmas. It is more likely that the royal baby will be

:19:25. > :19:29.

:19:29. > :19:34.born blonde. That threw me. Off all the many IFS, this is the biggest

:19:34. > :19:39.one. When David Cameron comes back he will be under pressure to say

:19:39. > :19:44.that any government he reads will have his referendum. Even if he

:19:44. > :19:48.goes into a coalition of Liberal- Democrats. As always under these

:19:48. > :19:54.circumstances, I wanted to ask where the postponement of the

:19:54. > :19:58.speech leaves us. Is this an advantage to Mr Cameron, or having

:19:58. > :20:04.marched all his men to the top of the hell, he has now marched them

:20:04. > :20:11.down again? Does he have to march them back up? I think he probably

:20:11. > :20:16.does. This adds to the uncertainty. That is very damaging for the UK.

:20:16. > :20:22.They is pressure on the currency at the moment. Our allies do not know

:20:22. > :20:30.where we stand and there is panic in Washington. There is irritation

:20:30. > :20:35.among our EU allies. It could be a damp squib? I suspect it will be.

:20:35. > :20:45.No one mentions public opinion. Only one-third of people in this

:20:45. > :20:45.

:20:45. > :20:50.country think that membership of the EU is a good idea. I think you

:20:50. > :20:55.have to be cautious about that. If you look at the recent YouGov

:20:55. > :21:05.opinion poll, it is moving in the other direction. When you start to

:21:05. > :21:09.speak about the cost of leaving the EU, it starts to go the other way.

:21:09. > :21:13.Finally, on this issue, I understand the Prime Minister says

:21:13. > :21:21.that if he does get this overall majority, he wants to repatriate

:21:21. > :21:31.parks. On the assumption he does that, I think he would then let us

:21:31. > :21:32.

:21:32. > :21:39.have a referendum. -- he wants to repatriate powers. If we vote no,

:21:39. > :21:44.what have we voted for? To leave, to exercise air writes. Maybe

:21:44. > :21:49.people will say, I quite like it the way it is. There will not be

:21:49. > :21:54.three options, there will be two questions. Does he realise that?

:21:54. > :21:58.Absolutely. That is the implication when he is speaking about the

:21:58. > :22:03.British exit. He has to focus their minds if you will not get through

:22:03. > :22:05.the negotiation. And we will have more on the speech

:22:05. > :22:09.that never was a little later in the programme.

:22:09. > :22:15.If you are a smoker, it is currently the NHS's job to help you

:22:15. > :22:17.quit. But from April, that responsibility shifts to local

:22:18. > :22:20.councils. So should those council workers' pensions be invested in

:22:20. > :22:23.tobacco stocks? Local authorities in the West Midlands have put

:22:23. > :22:25.nearly �130 million into cigarette companies and many others across

:22:25. > :22:33.the country have similar investments. It is a nice little

:22:33. > :22:39.earner but have they allowed their ethics to go up in smoke?

:22:39. > :22:43.Last year, smoking killed around 80,000 people in England. Latest

:22:43. > :22:50.figures show it cost the NHS more than �5 billion treating related

:22:50. > :22:56.diseases. That is why the NHS are keen to get the message across to

:22:56. > :23:01.smokers to quit. I tried it on my own but I was never successful. Oil

:23:01. > :23:07.was started smoking, especially during the holidays. Having someone

:23:07. > :23:11.to speak to you and encourage you was better. Because of the way the

:23:11. > :23:18.NHS is being reorganised, in April it will be your local councillor

:23:18. > :23:22.who will be responsible for stopping people smoking. But I have

:23:22. > :23:30.discovered via a series of Freedom of Information Act quiz, that

:23:30. > :23:36.councils in the West Midlands are or investing up to nearly �130

:23:36. > :23:45.million in tobacco companies through their pension pots. --

:23:45. > :23:51.Freedom of Information request. They are trying to persuade people

:23:51. > :23:54.to give up the product at the same time as this. What is the point?

:23:54. > :23:58.You could argue that their campaigning against their own

:23:58. > :24:04.interests as they are going along. They have got to get rid of the

:24:04. > :24:08.conflict of interest. Councils are currently investing �21 million in

:24:08. > :24:13.tobacco companies. They say it is because they have got to get the

:24:13. > :24:19.best deal possible for their pensioners. Some people think there

:24:19. > :24:24.is a conflict, but I do not think there is. We have an administrative

:24:24. > :24:28.function rather than a political one. We administer the pension fund

:24:28. > :24:35.and remind ourselves that this is the money of pensioners, not the

:24:35. > :24:40.money from the council. We try to get the best return we can. There

:24:40. > :24:44.is method in what some are describing as the council's madness.

:24:44. > :24:47.Over the past decade, tobacco stocks have done twice as well as

:24:47. > :24:55.the rest of the market and there had been to pay for a happy

:24:55. > :25:00.retirement for many workers. Across Warwickshire, councils hold tobacco

:25:00. > :25:05.shares worth seven. Million pounds. Councils in Staffordshire hold �31

:25:05. > :25:10.million, and the councils of the West Midlands have almost �60

:25:10. > :25:15.million. Will they change their tune? Staffordshire are the only

:25:15. > :25:21.authority promising a review. For the others, it seems that tobacco

:25:21. > :25:27.is a hard habit to kick. I think that is a good story. I am

:25:27. > :25:30.amazed at these councils investing in tobacco companies. I thought

:25:30. > :25:37.they were so politically aware that they would check with your money is

:25:37. > :25:42.going. Absolutely. Recently they got in trouble with ill-advised

:25:42. > :25:46.investments in Iceland. They lost a lot of public money. You would

:25:46. > :25:50.think that in the wake of that they would have gone through all their

:25:50. > :25:54.investments and wake up with they were wise Finance Lee, like the

:25:54. > :26:00.Iceland mistake, but also whether they were ethical. This will be

:26:00. > :26:08.hard to defend. The devil has the best investments. The highest rate

:26:08. > :26:13.of return! The European Union condemns smoking but still

:26:13. > :26:21.subsidises tobacco manufacturers. Some of the most potent tobacco

:26:21. > :26:27.that the world makes, be subsidised as the ghost of it. -- and they

:26:27. > :26:30.subsidise the production office. It is dumped in Africa. I think that

:26:30. > :26:35.this report will probably trigger most councils to have a late

:26:35. > :26:40.because it is not just tobacco, it is a whole lot of things. If you

:26:40. > :26:46.want an ethical Investment Portfolio, they are available, but

:26:46. > :26:52.they do not pay as much. More on a curious story we looked

:26:52. > :26:55.at yesterday. You may recall that former Children's Minister Tim

:26:55. > :27:01.Loughton created a stir earlier in the week when he criticised his

:27:01. > :27:04.former boss, Michael Gove. You can never have too much of a good thing

:27:04. > :27:08.so before we hear about the latest twist in this tale, here is a

:27:08. > :27:13.reminder of what he told the Education Select Committee. There

:27:13. > :27:18.is an upstairs downstairs mentality in the department. The ministers

:27:18. > :27:25.are all on the 7th floor. Officials are summoned to her office when I

:27:25. > :27:28.just wanted to have a quick chat. If I wanted to do that, the meeting

:27:28. > :27:33.had to go in the diary. Occasionally I went to another

:27:33. > :27:38.flower and it was like a state visit. Most officials have never

:27:38. > :27:44.met the Secretary of State, other than when he will troop out some

:27:44. > :27:48.chosen people for the new year party, like Mr Grace from Grace

:27:48. > :27:51.Brothers, to tell us we have all done terribly well.

:27:51. > :27:55.How has that gone down in the Department For Education? Not well

:27:55. > :27:57.is the answer. Fraser's magazine, the Spectator, carried a story

:27:57. > :28:00.yesterday quoting an unnamed government source who did not hold

:28:00. > :28:10.back when it came to Mr Loughton. back when it came to Mr Loughton.

:28:10. > :28:22.

:28:22. > :28:25.back when it came to Mr Loughton. Some of that was clearly

:28:25. > :28:29.unparliamentary language but there is a little bit of confusion around

:28:29. > :28:32.about what our next parliamentarian was getting at in a Commons debate.

:28:32. > :28:40.Here is Christchurch MP Christopher Chope in the House of Commons

:28:40. > :28:47.yesterday. Before I do that, let's get your reaction. This was a

:28:47. > :28:51.senior Department source. This was not an off-the-cuff reaction. They

:28:51. > :28:57.have been looking with increasing anger at the pauses that Tim

:28:57. > :29:01.Loughton has been striking since he left. I think he thought he could

:29:01. > :29:06.take a free hit at his old department, and slag off his old

:29:06. > :29:11.boss. He has found out that you cannot do that and not expect some

:29:11. > :29:17.form of retaliation, especially if you're playing a card that your

:29:17. > :29:21.colleagues do not believe you were ever entitled to play. What would

:29:22. > :29:28.you advise Tim Loughton to say in retaliation? I would not give him

:29:28. > :29:38.any advice because this is so much fun. That quote is every

:29:38. > :29:38.

:29:38. > :29:42.journalists's dream. The Department for Education has been extremely

:29:42. > :29:48.good under Michael Gove at making enemies. It now seems to be quite

:29:48. > :29:57.good at making enemies even of former ministers. I think they are

:29:57. > :30:02.slightly too happy. Michael Gove is such a gentle man. It is almost

:30:02. > :30:12.impossible to think of him saying a bad word about anybody, but that is

:30:12. > :30:12.

:30:12. > :30:22.not to say that the rest of his I dined, on all three nights, in

:30:22. > :30:25.

:30:25. > :30:28.the dining rooms, and almost nobody But the service was absolutely

:30:28. > :30:38.fantastic, Mr Speaker, because there was three servants for each

:30:38. > :30:40.

:30:40. > :30:45.person sitting down. Yes! Exactly! Can the Tories ever learn, plebs

:30:45. > :30:50.and now servants? That was a slip of the tongue, I am sure he sat

:30:50. > :30:55.down, it will look terrible, because it revives memories of

:30:55. > :31:00.plebgate and stuff, but I think this simply was a man taking a

:31:00. > :31:04.alliteration a little bit too far. Well, he got out of it by saying,

:31:04. > :31:10.we are all servants! Would you buy that? It would have been better to

:31:10. > :31:14.say it was a slip of the town, the word is waiter. It was probably not

:31:14. > :31:17.meant in a derogatory way, but it does not help, because when a

:31:17. > :31:24.Conservative politician is overheard making a remark like this,

:31:24. > :31:27.it adds to the impression of them being out-of-touch toffs.

:31:27. > :31:33.Christopher Chope lets the cat out of the back by referring to House

:31:33. > :31:37.of Commons waiters as servants! The Tories cannot escape this class

:31:37. > :31:41.trope, can they? They are vulnerable to this attack, and

:31:41. > :31:46.David Cameron fears is more than anything else. This is their state

:31:46. > :31:51.of Kryptonite to wave against him, and he just cowers. Similarly, they

:31:51. > :31:56.cannot handle it very well. They should have said, first off, sorry,

:31:56. > :32:02.there are millions of waiters in this country, and the idea that the

:32:02. > :32:07.Tories consider them servants is manna from heaven for Labour.

:32:07. > :32:11.easy how little slips of the tongue can be stared up into real rows.

:32:11. > :32:16.Upstairs downstairs again, it is not a good luck for the Tory party.

:32:16. > :32:22.OK, do we have any idea now, coming back to the Prime Minister, when

:32:22. > :32:25.this speech is going to be re scheduled? We don't. It is hard to

:32:25. > :32:29.believe he's going to wait more than another week. We already know

:32:29. > :32:33.the key points, we have seen phrases from it. If he leaves it

:32:33. > :32:38.more than seven days, it is going to become even more of a farce that

:32:38. > :32:42.it was a few days ago. He needs to visit Disneyland, somewhere in

:32:42. > :32:47.Europe, give it and come back. does he have to go to Europe to

:32:47. > :32:51.give it? It was supposed to be the symbolism, I am here, I am

:32:51. > :32:58.committed, still part of the club, I want us to remain in, but I think

:32:58. > :33:02.you are right, he should just get on and give the speech and move on.

:33:02. > :33:07.Can he do that old trick of a letter to his constituents which

:33:07. > :33:12.never gets to his constituents? Liam Fox does that. I don't know.

:33:12. > :33:16.He is going to have to... I think he has got a mild case of

:33:17. > :33:20.microphone phobia, the needs to get in front of it and come out with it.

:33:21. > :33:25.We will leave at there and see what happens. Thank you both for being

:33:25. > :33:29.with me today. Coming up in a moment, our monthly look at what

:33:29. > :33:33.has been happening in European politics, but for now it is time to

:33:33. > :33:37.say goodbye to my two guests, Fraser Nelson and Miranda Green.

:33:37. > :33:40.This week members of the European Parliament have been meeting in

:33:40. > :33:44.Strasbourg for their regular plenary session, so what have they

:33:44. > :33:54.been getting up to, and what else has been happening? Here's our

:33:54. > :33:56.

:33:56. > :34:02.guide to the latest from Europe in It is goodbye cybrid SARS Ireland

:34:02. > :34:06.takes over the presidency of the EU. -- Cyprus as. Enda Kenny says that

:34:07. > :34:11.Europe is at a crossroads. This presidency will be all about

:34:11. > :34:16.stability and jobs and growth. have been on the minds of MEPs as

:34:16. > :34:19.they called on member states to introduce a guarantee that no-one

:34:19. > :34:24.and a 25 goes without work or training for more than four months.

:34:24. > :34:27.But it is good news if you have got a job working for the EU, this

:34:27. > :34:34.month a levy on their salaries first introduced in 2004 has

:34:34. > :34:39.expired, which means that basic pay has gone up by 5.5%. Credit rating

:34:39. > :34:42.agencies face tougher rules after a vote by MEPs. Many of them blame

:34:42. > :34:46.the agencies for contributing to the financial crisis. And European

:34:46. > :34:49.foreign ministers have met to discuss the French military action

:34:49. > :34:59.and Mali. The EU will send a military training mission, but

:34:59. > :35:02.

:35:02. > :35:08.And with us for the next 30 minutes, and joined by Labour MEP Mary

:35:08. > :35:12.Honeyball, and UKIP MEP Roger Helmer. Welcome to you both. Let's

:35:12. > :35:16.look at one of those stories in more detail, the vote to rein in

:35:16. > :35:22.the influence of the credit rating agencies. I would suggest that

:35:22. > :35:26.given the role of the agencies in the run-up to the financial crash,

:35:26. > :35:30.at some stage they were going to be more regulated. I think that is

:35:30. > :35:35.absolutely right, Andrew. Credit rating agencies have evolved

:35:35. > :35:39.recently from being simply information givers, which is what

:35:39. > :35:45.they were originally setting out to do, to actually having a big impact

:35:45. > :35:49.on policy. Clearly, they have done that. The crash a couple of years

:35:49. > :35:54.ago was largely to do with the credit rating agencies, the way

:35:54. > :36:00.they behaved in the United States, with mortgages... Continuing to

:36:00. > :36:04.give AAA ratings... When they clearly were not. At just as badly,

:36:04. > :36:09.they have had an effect on sovereign debt, on countries. This

:36:09. > :36:12.country is desperate to keep its rating. Part of what gave the

:36:12. > :36:16.agency's their importance was that legislators, parliaments,

:36:16. > :36:23.governments in various countries, and even at the macro level, they

:36:23. > :36:26.gave them almost an official status. -- Bert EU level. They said that

:36:26. > :36:34.people at Bryn Estyn AAA bonds. is is a case of shooting the

:36:34. > :36:40.messenger. OK, they did a rotten job of protecting the crisis. But

:36:40. > :36:46.nobody has a good record on that. This amounts to an attack on free

:36:46. > :36:52.speech. These independent agencies are entitled to an opinion. Should

:36:52. > :36:55.they still have an opinion? But they will not have the same weight.

:36:56. > :36:59.These were serious attempts to curtail what they were able to say,

:36:59. > :37:03.and that is wrong. It is interesting that their opinion does

:37:03. > :37:06.not matter so much, they have downgraded France and the United

:37:06. > :37:11.States, and they are still borrowing as cheaply as we are.

:37:11. > :37:15.That may be true, but I think Roger is being a bit disingenuous with

:37:16. > :37:19.this for it is not just about them having an opinion, it is about the

:37:20. > :37:24.effect that the opinion had. You may be right that that that effect

:37:24. > :37:28.is not as important as it was, but the point of these legislation was

:37:28. > :37:33.to make the way they operate more open, so we could understand it, so

:37:33. > :37:37.there was a level of accountability. It is a good piece of legislation.

:37:38. > :37:41.Before events in Algeria unfolded, MEPs in Strasbourg were discussing

:37:41. > :37:47.the Islamist offensive in the neighbouring African country are

:37:47. > :37:51.Mali. One prominent MEP said it underlined the continued lack of a

:37:51. > :37:55.common foreign policy, so what has been the response, and should it

:37:55. > :37:59.have had one anyway? Yesterday EU foreign ministers were called in to

:37:59. > :38:02.an emergency meeting in Brussels to talk about Mali, and a promise to

:38:02. > :38:07.speed up the deployment of a training mission to support African

:38:07. > :38:11.troops. But of course it is France acting individually and acting

:38:11. > :38:14.quickly to send their forces to the north of the country with the

:38:14. > :38:19.support of other countries, including the United Kingdom on

:38:19. > :38:24.logistics. Perhaps this illustrates the challenge facing Baroness

:38:24. > :38:30.Ashton, the High Representative of the EU foreign ministry. Her job

:38:31. > :38:35.was created under the Lisbon Treaty, supported by the external actions

:38:35. > :38:40.servers. They won praise for their diplomacy over Iran's nuclear

:38:40. > :38:44.ambitions, but when it comes to major interventions, such as in

:38:44. > :38:48.Libya or Mali, it has been member- states that have taken the lead.

:38:48. > :38:53.You may remember the former US Secretary of State Henry Kissinger

:38:53. > :38:57.once asked, who rely call if I want to call Europe? His successor,

:38:57. > :39:03.Hillary Clinton, she is said to get on well with Baroness Ashton, but

:39:03. > :39:07.it is still not clear if the question has been answered. What

:39:07. > :39:11.role has the European Union played in the unfolding events in the

:39:12. > :39:16.Maghreb? I think you describe it perfectly, that the action has come

:39:16. > :39:19.from one member states, France, which is now being assisted by

:39:19. > :39:23.Britain, so you have two member states on an inter-governmental

:39:23. > :39:27.basis starting out on that project. Then you have the European Union

:39:27. > :39:31.running along behind and desperately trying to bowl on

:39:31. > :39:37.sunbeds so that afterwards it can say it is a European initiative, a

:39:37. > :39:41.European initiative. -- bowled on some bits. Baroness Ashton has been

:39:41. > :39:46.wholly ineffective since she has been appointed, and her foreign

:39:46. > :39:52.service is forecast and no benefit. Inter-governmental ism can work

:39:52. > :39:56.very well, the European Union is, in effect, a relevant. Well, it is

:39:56. > :40:00.not irrelevant, and the point that Roger has very carefully not talked

:40:00. > :40:04.about is that these kind of foreign policy initiatives are, in fact,

:40:04. > :40:09.taken by member states, they always have been, and it has never been

:40:09. > :40:12.part of the EU remit of foreign affairs to do that. So what is the

:40:12. > :40:18.point of having Cathy Ashton? Because it brings its together and

:40:18. > :40:20.it allows the EU to do what it was set up to do, and what these

:40:20. > :40:24.particular foreign policy initiatives was set up to do,

:40:24. > :40:30.provide humanitarian and non- combatant aid where it is necessary.

:40:30. > :40:34.That is actually what she is doing. So what is the EU's foreign policy

:40:34. > :40:39.en Mali? What is happening is that Baroness Ashton brought together

:40:39. > :40:44.the heads for all the member states' foreign offices a few days

:40:44. > :40:48.ago, and they agreed there would be a EU training mission to Mali

:40:48. > :40:52.through to enable them to set up better and more sustainable

:40:52. > :40:56.democracy, a kind of enabling mission. It is nothing to do with

:40:56. > :41:00.the fighting, as indeed the UK is not part of the fighting. It is

:41:00. > :41:05.enabling the EU to claim to be involved. It is providing

:41:05. > :41:08.assistance to the people of Mali, who are finding themselves in is

:41:08. > :41:11.impossible situation, where they have terrorists in the north of the

:41:11. > :41:17.country, which is what the French are helping the Government's deal

:41:17. > :41:22.with. The EU is providing a very small amount of assistance to help

:41:22. > :41:26.the democracy in Mali. That is not really foreign policy, is it? It

:41:26. > :41:30.could come under international aid. Does the EU support the French

:41:30. > :41:37.intervention? That is part of a bilateral agreement between us and

:41:37. > :41:41.France... Does the EU support it? I know why the UK is involved, as a

:41:41. > :41:47.nation-state, and we have a treaty arrangement with France to help, as

:41:47. > :41:50.they were supposedly help us, too, but what is the EU policy?

:41:50. > :41:55.supports the initiative, and it wants to jump onto the bandwagon.

:41:55. > :41:59.It is not jumping onto the bandwagon, Roger. It does support

:41:59. > :42:04.the initiative. It followed a long. It did not take the initiative

:42:04. > :42:08.because it is not the EU's role, that is the point. I think it is

:42:08. > :42:13.all right as it is. I would not like to see an extension of the

:42:13. > :42:18.foreign policy role, because I would not, no, I wouldn't, because

:42:18. > :42:21.I think what you are dealing with, obviously, in the EU is a grouping

:42:21. > :42:26.of 27 countries, and I think it is difficult in the present

:42:26. > :42:29.circumstances to get any kind of agreement. A lot of those 27 do not

:42:29. > :42:32.want collective foreign policy. Here's another thought, it is

:42:32. > :42:37.probably going to be a long time before that changes! I think you

:42:37. > :42:42.are probably right. It has reached its limit and gone beyond. Since we

:42:42. > :42:46.are agreed, we will move on! If David Cameron had stood up in

:42:46. > :42:50.Amsterdam, his speech would have been heard across the Continent.

:42:50. > :42:54.Britain's attitude to Europe and his desire to renegotiate the

:42:54. > :42:57.relationship with the EU is a hot topic for politicians, not just

:42:57. > :43:07.here but across the European Continent, as David Thomson has

:43:07. > :43:08.

:43:08. > :43:11.Strasbourg on ice, a parliament waiting to see where David Cameron

:43:11. > :43:15.takes Britain and perhaps the rest of Europe. We will have to wait a

:43:15. > :43:20.little bit longer now, but let's speed things up with a quick guide

:43:20. > :43:24.to what they make of us and our Prime Minister. Europe is a family,

:43:24. > :43:30.and of course there are good pupils and bad pupils, at now we have the

:43:30. > :43:38.impression that the UK are proud to be the worst pupils in the

:43:38. > :43:41.classroom! Mr Cameron asking for a renegotiation of the position in

:43:41. > :43:45.the union, if we start with that and other countries can follow,

:43:45. > :43:49.then for example France can start and as for the negotiations,

:43:49. > :43:53.because they do not like the competition rules. German could ask

:43:53. > :43:59.for a new statute in Europe because they do not like to pay for other

:43:59. > :44:03.countries. At the end, we should have 27 different statutes for the

:44:03. > :44:07.27 different countries. So that cannot work. We all know the

:44:07. > :44:11.argument for renegotiation. Since we joined the EU, we have changed,

:44:11. > :44:15.it has changed, the world has changed. Therefore why should not

:44:15. > :44:18.be treaties which bind us changed to reflect that? The question is,

:44:18. > :44:23.will our European neighbours, the heavy hitters in Strasbourg, buy

:44:23. > :44:27.it? The good news for David Cameron... I think there is more

:44:27. > :44:31.support than you think, because lots of people are unhappy. They

:44:31. > :44:37.are in favour of the EU, but they wanted to reform, the Netherlands,

:44:37. > :44:41.perhaps the Scandinavian countries. There may be some people in Germany

:44:41. > :44:45.saying that we should reform the European Union because the Brussels

:44:45. > :44:48.bureaucracy is not regarded as efficient. Now, he is a member of

:44:48. > :44:51.the same group in the European Parliament as Britain's

:44:52. > :44:56.Conservative MEPs, so you might expect him to support David Cameron,

:44:56. > :45:00.but members of the Dutch governing party are not dismissive of his

:45:00. > :45:06.approach either. We want to hear what he is proposing. We want to

:45:06. > :45:10.look at it and say, where can we support you? We do not say no to

:45:10. > :45:14.renegotiation, we say, let's sits down and talk. I say to those in

:45:15. > :45:24.France to say, no discussion at all, we want France to be in, we want

:45:25. > :45:25.

:45:25. > :45:29.Britain to be in, so we have to be Renegotiation might not be as

:45:30. > :45:36.impossible as it is sometimes painted us. But David Cameron might

:45:36. > :45:46.be careful about what he wishes for. Renegotiation always entails

:45:46. > :45:49.

:45:49. > :45:52.several partners. It would be naive to it accept at one side gets all.

:45:52. > :46:00.Joint banking supervision in the City of London would be one

:46:00. > :46:05.concession that Europe would be looking for. We want to have great

:46:05. > :46:11.Britain inside of the European Union. We must go one step in the

:46:11. > :46:18.direction of Great Britain. Let's speak about the issues. But there

:46:19. > :46:25.are deadlines, as well, for Germany. Unifier us think that Britain

:46:25. > :46:35.should either put up or shut up. What is not possible is that any

:46:35. > :46:39.

:46:39. > :46:45.member states can have one foot in and the other foot out. -- unifiers.

:46:45. > :46:49.We need the UK with both feet in the EU. But if it is chat -- if it

:46:49. > :46:59.is the choice of the British people, it would be better to have two the

:46:59. > :47:01.

:47:01. > :47:05.doubt. That would leave David Cameron in the cold. This is

:47:06. > :47:08.negotiation, Strasbourg style. And we are joined from Brussels now by

:47:08. > :47:11.the Conservative MEP and chairman of the Conservatives and Reformist

:47:11. > :47:13.Group in the European Parliament, Martin Callanan, and here in London

:47:13. > :47:23.by the former permanent representative to the European

:47:23. > :47:25.

:47:25. > :47:29.Union, Stephen Wall. Good afternoon. Is there really an appetite to do

:47:29. > :47:35.serious negotiation with the British on repatriating powers

:47:35. > :47:40.among the other member states? think he heard the reaction from

:47:40. > :47:47.several leading MEPs. I was quite surprised by how positive some of

:47:47. > :47:51.them were that the prospect. But MEPs are the most federalist in the

:47:51. > :47:56.whole of the European Union. The heads of government are more

:47:56. > :48:01.pragmatic. When they think about the possibility of Britain leaving,

:48:01. > :48:05.not least our budget contribution, as an advantage, they will think

:48:05. > :48:10.about to renegotiation. Do you believe that there is any chance

:48:10. > :48:15.that even if they are pragmatic and prepared to go down this route some

:48:15. > :48:20.way, that they would give anything like enough that would satisfy the

:48:20. > :48:26.Euro-sceptics on the Tory backbenches? I think there is a

:48:26. > :48:31.good chance. We certainly have to try. Public disenchantment with the

:48:31. > :48:36.EU is massive in the UK. We have to have public support if we are to

:48:36. > :48:40.remain members. That is why it is important that we give a solid

:48:40. > :48:46.commitment to a referendum to give people a chance of accepting that

:48:46. > :48:51.the brand new settlement or leaving. There has not been a referendum

:48:51. > :48:55.since 1975 on Europe and there is public demand for one. It will help

:48:55. > :49:00.to concentrate the minds of those politicians who are doing the

:49:00. > :49:06.negotiations. Our partners will know that they have to satisfy the

:49:06. > :49:11.British people. He is saying that this is going with the grain of the

:49:11. > :49:19.British people. The British a Euro- sceptic, they want to repatriate

:49:19. > :49:22.powers, or what is wrong with that? Overall if you look at the opinion

:49:22. > :49:26.polls there are some people that one tout and some people who want

:49:26. > :49:36.to stay in, and some people if you want less Europe, but not

:49:36. > :49:36.

:49:36. > :49:41.necessarily know Europe. As to having a referendum, at David

:49:41. > :49:49.Cameron finds himself in the situation that Harold Wilson was in.

:49:49. > :49:59.-- no. Then our partners said that they would not change the treaty.

:49:59. > :50:02.You have to accept that. We want to know that if the negotiations

:50:02. > :50:08.succeed she will recommend to the people of Britain that we stay.

:50:08. > :50:12.Will that be true? Gave Mr Cameron succeeds in getting what he would

:50:12. > :50:18.regard as enough in terms of repatriation, he has made it clear

:50:18. > :50:23.that he will say, a vote, yes, to stay in on these brand new terms.

:50:23. > :50:29.think he probably will. It will depend on the results of the

:50:29. > :50:33.renegotiation. There is a positive attitude from both sides. There has

:50:33. > :50:39.to be a referendum because people will know that it will be a choice

:50:39. > :50:43.of in or out on the brand new terms. We have to try and reach a brand

:50:43. > :50:48.new deal because the current settlement is unsatisfactory. Even

:50:48. > :50:55.Ed Miliband said on the radio yesterday that he is in favour of

:50:55. > :51:00.renegotiation. We could have cross- party agreement on this.

:51:00. > :51:06.Unfortunately labour are not signed up to a referendum yet. Where does

:51:06. > :51:11.this leave UKIP? I think I agree with Stephen. David Cameron will

:51:11. > :51:17.have the gravest difficulty getting anything more than cosmetic changes.

:51:17. > :51:21.He will not get substantial changes. Martin sounds optimistic, he has a

:51:22. > :51:26.party line to follow, but my view is that they've David Cameron

:51:26. > :51:30.attempts to negotiate he will not come back with anything significant.

:51:30. > :51:35.But I look beyond that to the outcome because if we have a

:51:35. > :51:39.referendum would be renegotiated package is a trivial renegotiation,

:51:39. > :51:44.as it was in the case of Harold Wilson, and the British people feel

:51:44. > :51:54.they have been rebuffed by Europe, that will be an enormous boost both

:51:54. > :51:54.

:51:55. > :51:59.for my party but for the no side. We have the re-election of David

:51:59. > :52:06.Cameron or not between now and then so whether we get a referendum is

:52:06. > :52:11.an open question. What is Labour's position on this? Ed Miliband has

:52:11. > :52:16.said that we do not want a referendum at the minute. I think

:52:16. > :52:21.we need to inject realism into the discussion we're having. We do not

:52:21. > :52:25.know what will be repatriated. We do not know what any of this will

:52:25. > :52:31.be about. We do not know the timescale and the outcome is not

:52:31. > :52:34.known. It is fantasy to start speaking about a referendum when we

:52:34. > :52:41.do not have the faintest idea when it will be and what it will be

:52:41. > :52:46.about. That is not true. I Group of Tory backbenchers have given us a

:52:46. > :52:54.list of major powers that they would like to repatriate. They are

:52:54. > :53:01.pretty close to the David Cameron project. -- a group of Tory

:53:01. > :53:06.backbenchers. Yes. David Cameron himself has spoken about several

:53:06. > :53:12.areas. One EC Social Chapter, and the other is rules on benefits for

:53:12. > :53:16.migrants. His difficulty a few wants to reopen the social chapter

:53:16. > :53:21.it is that we need to have the treaty change to renew the opt-out

:53:21. > :53:25.from the social chapter that John Major negotiated. If he wants to

:53:25. > :53:30.change the directors, which is not impossible, the European Commission

:53:30. > :53:36.will have to be persuaded to bring forward a proposal. He would have

:53:36. > :53:39.to build alliances. The other thing that is hinted at in the

:53:40. > :53:42.Conservative document that is interesting is that if we're in

:53:43. > :53:49.this situation where there is a group of Eurozone countries getting

:53:49. > :53:55.closer together, and some, not just Britain, outside the Eurozone, how

:53:55. > :53:59.do we ensure that the institutions are not disadvantaged? On the

:53:59. > :54:03.single market day is a built-in majority among the Eurozone that

:54:03. > :54:13.could override this issue. That would be a difficult issue to

:54:13. > :54:14.

:54:14. > :54:20.negotiate, but it would be in the British interests. -- interest.

:54:20. > :54:25.will give you the final word. How worried are you about UKIP and the

:54:25. > :54:32.threat to the Conservatives winning an overall majority in 2013?

:54:32. > :54:36.they are going to take thought away from us, that is a threat. But I

:54:36. > :54:42.think Roger Rees being churlish. He has been campaigning genuinely for

:54:42. > :54:47.a referendum for many years. Here is David Cameron offering him that

:54:47. > :54:52.referendum. I think the least he could do is welcome it. This gives

:54:52. > :54:56.us a chance to say to be disenchanted Conservative voters,

:54:56. > :55:02.series the referendum that you want. It is only a Conservative

:55:02. > :55:08.government that will deliver it. will give him a chance to welcome

:55:08. > :55:15.it when we finally hear the speech. Arguing Brussels or Strasbourg, I

:55:15. > :55:20.cannot remember? I am in Brussels. I was in Amsterdam, but you

:55:20. > :55:26.cancelled my trip from there! is the Prime Minister that

:55:26. > :55:30.cancelled it. But I am sorry about that. We cannot waste the licence

:55:30. > :55:35.fee. We all know that Brussels employs

:55:35. > :55:39.its fair share of bureaucrats, translators and politicians. But

:55:39. > :55:42.they are not alone. They are joined by hordes of lobbyists. Why are

:55:42. > :55:51.they there and who are they trying to influence? Here is Adam Fleming

:55:51. > :55:58.with the latest letter in his A-Z of Europe. L for lobbying.

:55:58. > :56:03.Welcome to Luxembourg. This is Ground Zero for schmoozing. As the

:56:03. > :56:13.powers of the EU have grown, so have the number of lobbyists. It is

:56:13. > :56:18.

:56:18. > :56:25.estimated there are between 15,030 1,000 of them. -- between 15,000

:56:25. > :56:31.and 30,000. There are charity groups and Industry organising

:56:31. > :56:35.meetings for the powerful. Outside the European Parliament, there is

:56:35. > :56:40.even a tree dedicated to lobbyists. And there are plenty of

:56:40. > :56:45.opportunities for them. You can try to coax the commission whose job it

:56:45. > :56:51.is to come up with brand-new laws that might affect your industry. Or

:56:51. > :56:57.why not try cajoling countries to nudge the EU in your direction? Or

:56:57. > :57:02.you can persuade Parliament to alter legislation in your favour.

:57:02. > :57:06.There have been some scandals. Last year the Health Commissioner

:57:06. > :57:11.resigned after being linked to a cash for legislation case link to

:57:11. > :57:15.tobacco. He has always denied doing anything wrong. They have

:57:15. > :57:22.introduced a code of conduct for lobbyists in an effort to make

:57:22. > :57:27.things more transparent. But it is voluntary. Campaigners complain

:57:27. > :57:31.about the revolving door. There is a massive number of people who

:57:31. > :57:37.leave the European institutions and walk straight into jobs where they

:57:37. > :57:42.peddle their influence. One person who did that is a former member of

:57:42. > :57:46.the European Parliament called Nick Clegg. But everyone is agreed that

:57:46. > :57:52.the year is far less money sloshing around the system here than in

:57:52. > :57:57.Washington DC. -- but everyone in Brussels is agreed that there is

:57:57. > :58:03.far less money. Coincidentally, the number of lobbyists there is

:58:03. > :58:07.exactly the same. If Brussels was subjected to the

:58:07. > :58:11.same amount of scrutiny as Westminster, lobbying would be the

:58:11. > :58:16.next big scandal? At am not sure about that but the rules do need

:58:16. > :58:22.tightening up. We are making progress but the register should be

:58:22. > :58:29.mandatory rather than voluntary. Your report was quite the rocketry,

:58:29. > :58:36.saying that lobbyists have a lot of money. -- do rocketry. It is not

:58:36. > :58:43.like that. I'm knead the Music Industry in my office and I speak

:58:43. > :58:48.to them about the issues. You think everything is fine. People speak

:58:48. > :58:57.about industry lobbyists. There are lots of non-governmental lobbyists