18/06/2013

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:00:39. > :00:42.Daily Politics. David Cameron and leaders from the G8 group of

:00:42. > :00:47.countries continue their summit in Northern Ireland, with Syria top of

:00:47. > :00:52.the agenda. But can the Prime Minister persuade Vladimir Putin to

:00:52. > :00:54.back his plan for peace? The Business Secretary hails the

:00:54. > :00:57.Government's record on apprenticeships and forecasts that

:00:57. > :01:04.they'll contribute over �3 billion a year to the economy within ten

:01:04. > :01:08.years. Vince Cable joins us live. As the coalition's changes to the

:01:08. > :01:13.NHS bed down, is now really a good time for more radical thinking on

:01:13. > :01:18.the health service and social care? The think tank the Kings Fund think

:01:18. > :01:20.so. They'll be here to explain why. And we'll hear from one academic who

:01:20. > :01:30.says some high-achieving politicians share character traits with

:01:30. > :01:32.

:01:32. > :01:35.psychopaths. And that's a good thing All that in the next hour. And with

:01:35. > :01:38.us for the whole programme today is the Labour peer John Reid, who in

:01:38. > :01:45.the last Labour government held a grand total of eight cabinet posts,

:01:45. > :01:48.ending up as Home Secretary until 2007. He's now chair of the

:01:48. > :01:54.Institute for Security and Resilience Studies. Welcome to the

:01:54. > :01:59.Daily Politics. Let's start with the G8 summit in Northern Ireland which

:01:59. > :02:04.continues today. Earlier this morning David Cameron and the other

:02:05. > :02:07.G8 leaders gathered together for what's known as a family photo. But

:02:07. > :02:10.it hasn't been all smiles, with Russian President Vladimir Putin

:02:10. > :02:20.making it clear he doesn't agree with the British PM on the issue of

:02:20. > :02:30.

:02:30. > :02:34.intervention in Syria. Downing Street wish to have a peace

:02:34. > :02:38.conference today, but the big question is whether President Assad

:02:38. > :02:46.will agree to step down. Is there a scenario where Russia can be cut out

:02:46. > :02:50.of the G8 over Syria? I don't think so. And it is not just Russia, other

:02:50. > :02:55.people at the G8 hold similar views. I think it is important to

:02:55. > :03:01.realise that the Russian position is not just self-interest as regards

:03:01. > :03:04.the long-standing relationship with Syria which, of course, is true, and

:03:05. > :03:10.the Mediterranean. I would also guess that Putin would reckon that

:03:10. > :03:16.one of the greatest threat to Russia is Islamist terrorism, and

:03:16. > :03:20.particularly the likes of Chechnya and the southern flank of Russia.

:03:20. > :03:25.His view, basically, it's better the devil we know than the devil we

:03:25. > :03:30.don't. We don't know what will happen after President Assad goes,

:03:30. > :03:36.if he does. Except, at the moment, people are saying he is butchering

:03:36. > :03:41.his own people, killing them intends, that can't continue. It is

:03:41. > :03:48.not better the devil you know. not justifying it, I am explaining

:03:48. > :03:54.the Russian position. If you explain that inflamed the situation further

:03:54. > :03:59.by bringing more arms, it might inflame a significant jihadist

:03:59. > :04:05.presence in Syria. Syria is not just self-contained, it is a battlefield

:04:05. > :04:12.in what is becoming a great sunny-macro/sheer-macro conflict.

:04:13. > :04:17.The Alawite 's are a minority further within that minority. But

:04:17. > :04:27.they are in the majority in Iraq, and in the non-Arab nation of Iran

:04:27. > :04:30.

:04:30. > :04:37.next door. Hezbollah are sheer based. The majority in Syria, they

:04:37. > :04:41.are Sunni and backed by Sunni nations like Saudi Arabia. But do

:04:41. > :04:46.you agree that we can't allow a situation where the opposition is

:04:46. > :04:54.exterminated before they even have a chance by the arms flowing into

:04:54. > :05:00.support Assad noes regime. Asad is behaving monstrously. Their element

:05:00. > :05:03.within the opposition to Asad who will operate in just such a

:05:03. > :05:10.monstrous fashion if they ever take control. They are blowing up

:05:10. > :05:15.innocent civilians through the world. The key question is not by

:05:15. > :05:18.doing nothing to you avoid responsibility, you don't, right?

:05:18. > :05:25.There are consequences, moral and otherwise, of doing mopping. But the

:05:25. > :05:31.key question is by pumping in more arms, do you actually have an

:05:31. > :05:36.outcome which is better. I suspect we will get an agreement from the GH

:05:37. > :05:40.which says humanitarian, diplomatic and political moves, there may be

:05:40. > :05:45.difficulty over the wording about whether the regime and Assad must

:05:45. > :05:50.stay, but I think it will stop short of any agreement, certainly with

:05:50. > :05:53.Russia, to put in extra weaponry. Let's turn to another major

:05:53. > :05:56.international story - the news that NATO has handed over security for

:05:56. > :05:59.the whole of Afghanistan for the first time since the Taliban were

:05:59. > :06:02.ousted in 2001. At a ceremony in Kabul, President Hamid Karzai said

:06:02. > :06:04.that, from Wednesday, our own security and military forces will

:06:04. > :06:07.lead all the security activities. International troops will remain in

:06:07. > :06:17.Afghanistan until the end of 2014, providing military back-up when

:06:17. > :06:18.

:06:18. > :06:23.needed. Are they going to cope, the Afghan security services? I think

:06:23. > :06:29.they will cope. They won't guarantee that there will not be continual

:06:29. > :06:32.acts of terrorism. This is another battlefield in this great front. Six

:06:32. > :06:38.years ago they had some 40,000 in terms of numbers, they've now got

:06:38. > :06:43.350,000. They are a significant size. In terms of quality, my

:06:43. > :06:48.understanding is that they have now become roughly equivalent to the

:06:48. > :06:50.Army of a developing nation, so they are not as good as the advanced,

:06:50. > :06:56.well-trained and well-equipped armies of the West that have been a

:06:56. > :07:02.nice so far. But at some stage the handover has two take place, because

:07:02. > :07:05.they need autonomy over their military, as well as politically.

:07:05. > :07:09.don't have exact numbers, but there are Afghans already leaving the

:07:09. > :07:12.army, and the worry is that the Taliban will just step in. How

:07:12. > :07:21.important are the talks that have been mentioned with the Taliban in

:07:21. > :07:24.Qatar? If I had a criticism over the government over the last few years,

:07:24. > :07:28.I don't think it did enough on the political front. I don't think it

:07:28. > :07:35.made sense to announce publicly that we are leaving militarily, then we

:07:35. > :07:40.will start talking. We should have been talking to those allied to the

:07:40. > :07:45.Taliban with whom it was possible, and then announce a leaving date as

:07:45. > :07:49.a result of the politics. Not saying, we are off, will you now sit

:07:49. > :07:55.down and talk? The Taliban have an old saying, you might have the

:07:55. > :08:02.watches but we have the time. If you announce we are going at a certain

:08:02. > :08:08.date, it's... Weakens the hand?It is not to say that a political

:08:08. > :08:14.solution is not the ideal, it is. The Taliban are not a homogenous

:08:14. > :08:17.group. Now time for Now it's time for our daily quiz.

:08:17. > :08:20.Something a little different. The question for today is: According to

:08:20. > :08:28.our guest John Reid, which of the following is the most likely result

:08:28. > :08:30.of the 2015 general election? I hope you have your crystal ball! Is it a

:08:30. > :08:33.Labour majority, a Labour/Lib Dem coalition, a Conservative/Lib Dem

:08:33. > :08:35.coalition or a Conservative majority? At the end of the show,

:08:35. > :08:38.John will give us the correct answer.

:08:38. > :08:41.There's just a week to go before the Chancellor outlines the Government's

:08:41. > :08:44.spending plans for the year after the next election. George Osborne is

:08:44. > :08:47.looking to cut around �11.5 billion from public spending, and one area

:08:47. > :08:50.which is likely to face another round of belt-tightening is local

:08:50. > :08:59.government. Central government funding makes up around 40% of local

:08:59. > :09:02.government budgets in England. Over the three years from 2011/12 to

:09:02. > :09:09.2014/15 this part of their budget has been squeezed by 33% in real

:09:09. > :09:14.terms. That's led to protests from local government chiefs, who warn of

:09:14. > :09:17.dire consequences if budgets are reduced further. The Local

:09:17. > :09:22.Government Association has warned, some councils will not be able to

:09:22. > :09:27.deliver the existing range of services. The LGA has called on the

:09:27. > :09:30.Treasury to lift all restrictions on council tax in the spending review.

:09:30. > :09:35.At the moment, councils are encouraged to keep council tax rises

:09:35. > :09:42.to less than 2%. But could local government make more savings without

:09:42. > :09:46.affecting services? Last night, Channel 4's Dispatches programme

:09:46. > :09:47.investigated waste in local authorities. It found that over �30

:09:47. > :09:54.million has been spent by 374 councils on chauffeur-driven cars

:09:54. > :09:57.for council officials over the last five years. The programme also

:09:57. > :10:04.discovered that councils spent �3.7m on foreign trips to places like

:10:04. > :10:12.Jamaica and South Africa over the last five years. With us now is the

:10:12. > :10:18.Local Government Minister Brandon Lewis.

:10:18. > :10:22.Is all spending on cars and foreign trips just frivolous, in your mind?

:10:22. > :10:26.I am sure some spending will be done appropriately, to go to places and

:10:26. > :10:30.see people, but we have to look at what is spent and is it

:10:30. > :10:35.appropriate. �6,000 to see the World Cup, I don't think many taxpayers

:10:35. > :10:40.would see that as reasonable. might be the exception. If you take

:10:40. > :10:48.the figures, �30 million spent by 374 councils on chauffeur driven

:10:48. > :10:52.cars, that is �16,000 per cancel per year -- per council per year, so

:10:52. > :10:56.than the figures don't look so bad. That is why it is important to look

:10:56. > :11:01.at details and why local transparency is so important, so

:11:01. > :11:07.that local taxpayers can see what is being spent, what on and whether it

:11:07. > :11:13.is appropriate. Transparency exist. It is probably one of the clearest

:11:13. > :11:15.areas where you can get figures. It looks as if you are using all

:11:15. > :11:22.referring to blanket figures that councils are being irresponsible.

:11:22. > :11:26.Let's look at foreign trips, can they ever be justified? This is a

:11:26. > :11:32.call not from government, from Dispatchers. We are saying that the

:11:32. > :11:37.Local Government Minister look very carefully, there is over �2 billion

:11:37. > :11:42.of uncollected council tax, �2 billion in fraud, �60 billion in

:11:42. > :11:45.reserves, over �220 billion in assets, of which �2 billion is

:11:46. > :11:50.listed as surplus and another �1 billion is up for sale. There is a

:11:50. > :11:56.huge amount in the system that we would like to see better used.

:11:56. > :12:00.look at the foreign trips. One spokesperson said, this is trimming

:12:00. > :12:03.up business. Rather than being a waste, people are coming back with

:12:03. > :12:08.cash for investment. Another example, social workers going to

:12:08. > :12:12.countries to visit relatives in the care of the borough to see whether

:12:12. > :12:18.children can be returned to relatives in Jamaica. It is more

:12:18. > :12:21.subtle and nuanced than just saying, is this waste? That is why

:12:21. > :12:24.transparency is important. Councils and quite rightly make the case

:12:24. > :12:28.about what they think is appropriate, and the beauty of

:12:28. > :12:33.democracy is that everyone gets a chance to have their view. But you

:12:33. > :12:38.feel that local government is still wasting money? Two there are some

:12:38. > :12:42.councils doing great, innovative work, sharing management and

:12:42. > :12:47.outsourcing. �61 billion a year for local government, we can still go

:12:47. > :12:51.further. We asked somebody from a council to come on, but they

:12:51. > :12:54.couldn't, but local government Association spokesman said that

:12:54. > :12:59.everybody working in the public sector is required to spend

:12:59. > :13:06.taxpayers money at Canterbury. The details of expenses and allowances

:13:06. > :13:11.claimed by councillors are published online, as well as all spending over

:13:11. > :13:14.�500. What are you hoping to reveal? We brought in the transparency

:13:14. > :13:22.rules, we are very proud of that. Local people can see what is being

:13:22. > :13:26.spent. We need to make sure that money spent appropriately. We have

:13:26. > :13:31.councils who have put up council tax and allowances. We don't think that

:13:31. > :13:34.is what taxpayers want to see locally. What do you say about the

:13:35. > :13:41.claim that Labour councils in particular are putting up council

:13:41. > :13:46.tax, and they don't think it is justified? I was an MP for 25 years,

:13:46. > :13:52.and the vast majority of councils of all parties to a thankless task,

:13:52. > :13:56.very often, in the frontline of politics. They can't come off to

:13:56. > :14:01.Westminster for four days a week, they are steeped in locality and

:14:01. > :14:04.they are now more transparent than anyone else. Of course there will be

:14:04. > :14:10.misusers in any organisation. We have seen it with MPs, the

:14:10. > :14:15.government and so on. Given the degree of transparency, I think that

:14:15. > :14:21.some of the examples here of the types of cars hired and so on, it

:14:21. > :14:25.would be sensible to recognise that in a time of financial austerity you

:14:25. > :14:30.leave yourself open, and the first thing to ask is how will this play

:14:30. > :14:36.in the front page of the Sunday Post? Some of them are Jaguars and

:14:36. > :14:40.Bentleys as opposed to other, cheaper makes of car. Let's look at

:14:40. > :14:44.spending cuts. The LGA and individual councils are saying they

:14:44. > :14:50.just can't take any more cuts to expenditure, it will affect

:14:50. > :14:53.frontline services. Are you prepared to take that risk? Last year, local

:14:53. > :14:58.authorities had a reduction in spending power of 1.3%. Most people

:14:58. > :15:02.out in the world would say that saving 1.3% is quite achievable and

:15:02. > :15:08.we should try to do it. Councils have to make sure that cracking down

:15:08. > :15:10.on fraud and error, collecting council tax and using the reserves

:15:10. > :15:14.they have built up in the best possible way to develop for the

:15:14. > :15:18.future and to deliver good local services. So you think 's can be

:15:18. > :15:25.made without risk to frontline services? -- you think at can be

:15:25. > :15:32.made? �61 billion a year of procurement, saving a few % makes a

:15:32. > :15:39.big difference to local taxpayers. It is about making sure that the tax

:15:39. > :15:42.payers' money is well spent. John Reid, councils that we have had on

:15:42. > :15:46.the programme before cover different areas with different problems.

:15:46. > :15:49.Bradley Lewis always talks about councils in the round in England,

:15:49. > :15:57.but there are inner-city areas that will have bigger problems with,

:15:57. > :16:01.perhaps, social care than a rule area. I think people recognise that

:16:01. > :16:06.there has to be some greater efficiency continually, in all

:16:06. > :16:09.services. You think they can't take more cuts? No, what I'm saying is

:16:09. > :16:13.that while I agree there's always room for efficiency and looking at

:16:13. > :16:17.that, I think the Government would be better to be up front and just to

:16:17. > :16:22.say, yes, we understand that even with that, there might be a

:16:22. > :16:26.deterioration in services. I think it's a bit hypocritical to say, yes,

:16:26. > :16:29.we are reducing services in given areas because of the austerity in

:16:29. > :16:33.which we're in. People recognise that, but when it comes to local

:16:33. > :16:37.Government, we'll not only cut, not only ask them to be efficient, but

:16:37. > :16:40.we'll pass responsibilities to them that they didn't previously have and

:16:40. > :16:44.then we'll pretend that this is going to happen in a way that there

:16:44. > :16:49.won't be a deterioration. There will be a deterioration in services here.

:16:49. > :16:54.And the responsibility for that is shared and particularly if there is

:16:54. > :17:01.less money coming from central Government. I don't think that needs

:17:01. > :17:05.a great cull pability, a great admission of doing things wrong. Cut

:17:05. > :17:12.backs are taking place in every department of Government. You be

:17:12. > :17:16.more honest? We are being very clear and honest. What about a

:17:16. > :17:20.deterioration in services? We have seen public satisfaction with

:17:20. > :17:23.council services going up. That's because councils are being

:17:23. > :17:27.innovative and doing more for less. That's a good thing. There are

:17:27. > :17:31.councils out there doing great work in that regard. It's important to

:17:31. > :17:36.note that it's not fair to say urban areas will need to spend more than

:17:36. > :17:39.rural areas. Some rural areas will argue because of sparsity there are

:17:39. > :17:42.other pressures. There is a different type of pressure and

:17:42. > :17:45.response they have to give. That's why it's important that these

:17:45. > :17:49.decisions are made locally by local authorities that understand and care

:17:49. > :17:53.about their local area. Thank you very much.

:17:53. > :17:58.Now this morning, the chief executive and chairman of Lloyds

:17:58. > :18:03.banking group have been questioned by the Treasury Select Committee

:18:03. > :18:07.about the failed sale of 632 bank branches to the Co-op. A deal was

:18:07. > :18:11.instruct with the Co-operative Group last summer but has unravelled after

:18:11. > :18:16.it emerged the group is facing a capital black hole of up to �1

:18:16. > :18:21.billion. The Co-op pulled out of the deal in April and announced a rescue

:18:21. > :18:25.plan yesterday morning. The Lloyds chairman was asked whether

:18:25. > :18:32.politicians pressured them into accepting the bid? Is it true, as

:18:32. > :18:36.has been alleged, that the decision to a award Verde to the Co-op was

:18:36. > :18:42.made on political rather than commercial grounds? No. It is not.

:18:42. > :18:49.What the board looked at was financial and execution, the ability

:18:49. > :18:59.to execute. Those were the only two things that we looked at. There was

:18:59. > :19:01.

:19:01. > :19:08.no political pressure? Yoo no. And no indirect contact via others?

:19:08. > :19:14.No direct contact either to me or, I think, to Antonio, no the other way

:19:14. > :19:18.around. Well, we've been joined by the Conservative MP David Davis who

:19:18. > :19:24.chaired the future banking commission in 2010. What went wrong?

:19:24. > :19:30.Oh, so many things went wrong. I mean, today's evidence is incredible

:19:30. > :19:34.really. They're supposed to have done due diligence. That's so you

:19:34. > :19:40.see the facts. When they were doing that, the Co-op was losing 50

:19:40. > :19:43.million a month. Writing off 300 million of debts. They clearly

:19:43. > :19:50.didn't do the work. When you do this sort of business, you look for red

:19:50. > :19:54.flags. This had more red flags than a minefield. You say there wasn't

:19:54. > :20:00.dew -- due diligence. So not enough work was done rather than they did

:20:00. > :20:04.the work but still wept ahead with what looked like a rotten deal?

:20:04. > :20:07.committee was quite gentle with them today. The Co-op had trouble taken

:20:07. > :20:12.over the Britannia Building Society, that was failing. It was having

:20:12. > :20:18.trouble with its profit making. It was losing money. Now, we know, it's

:20:18. > :20:22.1. 5 billion in the hole. This is only six months after the deal was

:20:22. > :20:26.struck. What's changed in the last six months? Next to nothing. Either

:20:26. > :20:30.they did a terrible job of due diligence or they did a loose one

:20:30. > :20:33.because they were encouraged to dot deal. You don't believe them when

:20:33. > :20:38.they say there was no political pressure? I think there's something

:20:38. > :20:41.wrong with this deal. That's what I know. I can't tell you, because I

:20:41. > :20:44.wasn't in the room. But there's something wrong with the deal.

:20:45. > :20:52.due know there was something wrong with the deal once it became clear

:20:52. > :20:54.there was a 1. . 5 billion black hole in the Co-op's finances, which

:20:54. > :20:59.does beggar belief that no-one spotted that. They're inside, we're

:20:59. > :21:02.not. When it finished, the other bidder wrote to me. When I got the

:21:02. > :21:08.letter I thought well, this might just be a sore loser. I handed it

:21:08. > :21:15.over to the PAC just in case. What's happened is everything he predicted

:21:15. > :21:21.then, the failure of every part of the system has come true. That

:21:21. > :21:27.letter that he sent to me and others was given to chairman Bischoff in

:21:27. > :21:32.January of last year. What do you think? Well, let me just say at the

:21:32. > :21:39.beginning, I'm disappointed that the mutual status of the Co-op is now

:21:39. > :21:48.under threat. Because I really believe in muchuals. The Government

:21:48. > :21:50.-- mutuals. The Government has expressed this as well. This looks

:21:50. > :21:52.complete completely botched. At worst, there's a whiff in the air.

:21:52. > :21:57.There are two questions, the first is - does the question have a

:21:57. > :22:02.strategic interest in the banks that it's nationalised and the stability

:22:02. > :22:06.of the economy in. A general sense, yes. We might disagree in that

:22:06. > :22:11.because David is more of a Libertarian on these issues. The

:22:11. > :22:20.real question is in this instance, was there a nod and a wink, was

:22:20. > :22:26.there a political decision taken to en encourage these events to happen

:22:26. > :22:32.which in retrospect seem very, very popped, at the least, and possibly

:22:32. > :22:38.catastrophic. Who would benefit? don't disgree over the importance of

:22:38. > :22:43.the Government having a strategic view. But that should have been up

:22:43. > :22:47.front. There's a rule of law problem when you let two people bid if

:22:47. > :22:51.you're only going to allow one to win. There are issues with that.

:22:51. > :22:56.It's right we have an interest. Otherwise the economy won't recover.

:22:56. > :22:59.Why not the alternative bid? The evidence this morning, as the chief

:22:59. > :23:05.executive and chair of Lloyds said the money wasn't there in NBNK's

:23:05. > :23:10.bid. True. That is simply not true. It was going to be there in escrow

:23:10. > :23:14.up to �730 million. I know he said that. It's not the case. Similarly,

:23:14. > :23:19.it said the bid wasn't underwritten. Who provided the underwriting for

:23:19. > :23:26.the Co-op? Lloyds did. This bid was put in by the biggest players in the

:23:26. > :23:29.City, Aviva, foreign and colonial investment. All sorts of big

:23:29. > :23:38.players, who wouldn't have set it up unless they intended to fund it.

:23:38. > :23:42.What now for Lloyds? They have got to do this branch sell off. They

:23:42. > :23:46.will do an IPO. Nobody involved in this decision should have any share

:23:46. > :23:49.options in that float, nobody. Because I don't want anybody who has

:23:49. > :23:52.made this much of a botch of it to profit from it. Though that's

:23:52. > :23:55.probably not what the Treasury is thinking. Well, I think the Treasury

:23:55. > :23:59.may have trouble with the House of Commons when we come to that

:23:59. > :24:03.position. ?Oh, yeah. These people have clearly maed a mess of. This

:24:03. > :24:08.they've damaged one of the great institutions of our country, the

:24:08. > :24:13.Co-op in doing so... Well is the Co-op damaged? Somebody might think

:24:13. > :24:17.it's a great deal that it's going to save the bank, including the chief,

:24:17. > :24:21.which is unsurprising. Joot Co-op has been a very successful

:24:21. > :24:26.organisation. Yes it needed to modernise and so on. It did it on

:24:26. > :24:30.mutual basis. It was probably the preeminent mutual society. It wasn't

:24:30. > :24:34.on the Stock Exchange. It wasn't just controlled by a group of small

:24:34. > :24:37.shareholders and so on. In that sense, yes, this has damaged it.

:24:38. > :24:42.Reputationally it will damage it as well. Especially since they're

:24:42. > :24:48.talking about the bond holders and that, many of whom may well be

:24:48. > :24:51.pensioners having to take a cut on their investment and get cut back.

:24:51. > :24:56.There will be short-term loss for long-term gain in that sense? Do you

:24:56. > :25:01.think the culture of bank will change? Of the Co-op?Yes. Because

:25:01. > :25:06.shares will be owned by commercial investors? John's right. You need

:25:06. > :25:09.all sorts, you need an ecosystem. You need limited liability companies

:25:09. > :25:13.and mutual companies in a stable system. We have lost one of the part

:25:13. > :25:18.system. That's a bad thing. , thank you very much. We'll no doubt return

:25:18. > :25:23.to this in the future. You might be forgiven for thinking there is very

:25:23. > :25:27.little new left to say about the NHS in England, after recent reforms and

:25:27. > :25:34.endless debate. But the leading health think-tank the King's Fund

:25:34. > :25:36.has found another issue to discuss. Today, they're launching a

:25:36. > :25:40.commission into health and social care questioning whether the

:25:40. > :25:44.boundary between the two needs to be redrawn. The King's Fund says the

:25:45. > :25:50.health system faces a series of challenges this century, including

:25:50. > :25:54.increasing costs of care, a growing and ageing population. The current

:25:54. > :25:59.system, established after World War II, has remained unchanged with the

:25:59. > :26:03.NHS free at the point of use, while social care is means tested. At the

:26:03. > :26:08.moment, some aspects of social care are paid for by local authorities,

:26:08. > :26:11.not from the NHS budget. As we've also discussed, local councils are

:26:11. > :26:15.warning further cuts to their budgets will increase pressure on

:26:15. > :26:18.the services they provide. Elderly people are also expected to

:26:18. > :26:27.contribute to the costs of their own social care. Although the Government

:26:27. > :26:30.plans to cap this at �72,000 from 2016. The King's Fund also questions

:26:30. > :26:35.whether the relationship between health and social care staff is good

:26:35. > :26:39.enough. The Government has made a commitment to have a fully joined up

:26:39. > :26:42.health and social care service by 2018. Well, we've been joined by

:26:42. > :26:48.Chris Ham from the King's Fund and by the minister for social care,

:26:48. > :26:53.Norman Lamb. Welcome to both of you. Why is this review needed? We seem

:26:53. > :26:55.to know most of what I've said. What are we going to learn? We believe

:26:55. > :26:59.now is the time to do a fundamental review, not just of how the currents

:26:59. > :27:04.system works but whether it's the right system for the future. I would

:27:04. > :27:08.have an ageing population. We have people who don't just have one

:27:08. > :27:12.health care need but several. They span health and social care.

:27:12. > :27:16.Successive governments have tried to get local authorities and NHS

:27:16. > :27:20.organisations to work together with limited success. We believe it's

:27:20. > :27:24.long overdue to reexamine what happened in 1948 when the NHS was

:27:24. > :27:27.set up and local authorities were given responsibility for social care

:27:27. > :27:31.and ask how to bring them closer together and bring about

:27:32. > :27:35.improvements in care for older people who most need that care.

:27:35. > :27:39.agree that health and social care funding should be brought together?

:27:39. > :27:43.We argue that now is the time to address that question seriously. We

:27:43. > :27:48.think there are ways of doing it within the existing system that may

:27:48. > :27:55.not go far enough. Within the existing system, in other words

:27:55. > :28:00.still allowing councils to be the ash tors and -- arbitors and

:28:00. > :28:04.distributors of social care? limited option would be to pool

:28:04. > :28:08.councils to get organisations to agree to share resources. The

:28:08. > :28:12.radical option would be to say let's break down that barrier entirely,

:28:12. > :28:17.have a single pool of money paying for both health and social care.

:28:17. > :28:21.What you would like to see? Well, I think Chris and I are complete lay

:28:21. > :28:26.greed that the model of care has to change completely. So we have to be

:28:27. > :28:30.open minded about all the different options. The idea of just being able

:28:30. > :28:33.to work from one budget for the needs of people, individual patients

:28:33. > :28:37.don't understand the difference between health care and social care.

:28:37. > :28:42.They just want to receive care. The idea of breaking down this barrier I

:28:42. > :28:47.think is immensely attractive. are in favour of having one fund,

:28:47. > :28:51.really, from which all care would come, including social care?

:28:51. > :28:54.question is whether you do that as a national settlement, where you just

:28:54. > :28:59.change this arrangement, whereby you have the NHS and local authorities

:28:59. > :29:03.or whether you get it to happen the -- at the local level. What we're

:29:03. > :29:08.doing in Government is making it happen locally. We have set a tough

:29:08. > :29:11.ambition to get to a fully integrated system by 2018. We have

:29:12. > :29:17.pioneers that we're going to announce in septs that will really

:29:17. > :29:20.push the boundaries -- September. All the best countries in health

:29:20. > :29:23.terms are doing this. They recognise that the big challenge is people

:29:23. > :29:26.living for many years with chronic conditions and we're not caring for

:29:26. > :29:32.them very well. That's the challenge. We're not delivering good

:29:32. > :29:36.care and it's not a sustainable system. Is this new? When you were

:29:36. > :29:41.Health Secretary, people were talking about closer integration

:29:41. > :29:46.between community care and hospital care, for example. Do you agree with

:29:46. > :29:51.what Norman Lamb is saying? As it happens, I think both are spot on.

:29:51. > :29:56.Let's leave aside our differences and address the key question: There

:29:56. > :30:00.are two mammoth organisations. When I was Health Secretary there was

:30:00. > :30:06.about 1. 25 million people in the NHS and the same again and more in

:30:06. > :30:10.social care. Just behind the red army. Yeah they used to say apart

:30:10. > :30:14.from the Indian railways and Chinese Red Army, it was the largest

:30:14. > :30:18.organisation in the world. However, what has changed over the past 25

:30:18. > :30:24.years? It is the demographic changes. We're growing older, much

:30:24. > :30:28.older than we were. We're being sustained in life by new

:30:28. > :30:33.pharmaceuticals, new technology and so on. That means in the future,

:30:33. > :30:37.actually, most of the illnesses, the problem addressing them won't ab

:30:37. > :30:42.cute operations in hospitals, it will be chronic illnesses which

:30:42. > :30:48.requires care in the community. The big gap that used to be seen between

:30:48. > :30:52.care and hospital operations and medical side is disappearing because

:30:52. > :30:55.of social change. Why hasn't that happened? I've had endless

:30:56. > :30:57.discussions about this. Everybody recognises the problem and actually

:30:57. > :31:05.recognises the problem and actually recognises the problem and actually

:31:05. > :31:11.put forward solutions. It has happened incrementally, we

:31:11. > :31:16.introduced the number -- increased the number of community nurses and

:31:16. > :31:20.local health centres in the community, we expanded GP practices.

:31:20. > :31:26.That was incremental movement towards it. What our guests today

:31:26. > :31:31.are saying is that we really need to look at a big, strategic radical

:31:31. > :31:36.change, perhaps years out. We have already had a big, strategic radical

:31:36. > :31:41.change. Can the health service cope with a different one? With respect,

:31:41. > :31:46.it was the wrong one. What Norman and the government have said is that

:31:46. > :31:50.we will move some of the NHS budget to social care to help hard-pressed

:31:50. > :31:55.council is not to have to rush and social care to needy older people,

:31:55. > :32:01.because the two systems need to work together, that is where we need to

:32:01. > :32:07.focus. You made the wrong change? This is the model of care, not

:32:07. > :32:11.structural change. I would say we are in agreement... Except he says

:32:11. > :32:15.the reorganisation was not the right thing to do. Two you ask why it has

:32:15. > :32:21.not happened so far. The stars are lying snow and, critically, every

:32:21. > :32:31.part of the system recognises that unless change happens it will

:32:31. > :32:31.

:32:31. > :32:39.collapse. Reign and across parties. Then the more we can take the public

:32:39. > :32:46.with us. I am not a conservative, I am a Liberal Democrat. You are in

:32:46. > :32:51.coalition. And I have argued from the moment I got into the Department

:32:51. > :32:56.for health, I think it is really happening. Your commission wants to

:32:56. > :33:02.ask if the entitlements and criteria used to access who can access health

:33:02. > :33:08.and care be aligned. Social care is means tested. Do you want to apply

:33:08. > :33:15.means testing to parts of the NHS? We have set up a commission to look

:33:15. > :33:18.into that. But the logic of that question is we should look at means

:33:18. > :33:23.testing. We have not spoken about affordability and the difference in

:33:24. > :33:28.the budgets for the NHS and what councils receive for social care.

:33:28. > :33:32.But if you put them together, would you have to consider means testing

:33:32. > :33:37.part of the NHS? If we are revisiting the post-war settlement,

:33:37. > :33:43.you should not leave anything off the table. But we believe there is a

:33:43. > :33:48.lot of scope for using existing spending more efficiently. We spent

:33:48. > :33:52.105 �15 billion on the NHS, �15 billion on social care. Nobody says

:33:52. > :33:57.every pound is spent wisely and efficiently. If we did not have

:33:57. > :34:06.people in hospitals who could be cared for at home if the money was

:34:06. > :34:07.used flexibly, we would save on the wastage expenditure on expensive

:34:07. > :34:14.hospital treatment and help people to be supported where they want to

:34:14. > :34:18.be. So you will reduce the NHS budget and shift it to social care?

:34:18. > :34:21.We need to shift from repair to prevention. That is where we have

:34:22. > :34:29.made too much investment over the years, we have to stop people

:34:29. > :34:33.getting ill in the first place. it wrong to ring fence NHS spending?

:34:33. > :34:39.I think it was right, it has given us the capacity now to do quite

:34:39. > :34:44.exciting things with Health and Social Care Bill. The other big

:34:44. > :34:47.collaboration is between the statutory services in the

:34:47. > :34:51.community, people and neighbourhoods. Lots of people in

:34:51. > :34:56.retirement have time on their hands and want to give something back to

:34:56. > :35:02.their community, to neighbours. If we can unleash that power, together

:35:02. > :35:06.with the statutory services, we have a potential solution. When will the

:35:06. > :35:11.report be finished? The interim report, early next year, the final

:35:11. > :35:14.report in September, to feed into the election debate. There are holes

:35:14. > :35:19.in the NHS ring fence. The money that has been earmarked and

:35:20. > :35:24.protected, some of that is being transferred to local authorities to

:35:24. > :35:29.deal with their funding pressures. That is only a short-term sticking

:35:29. > :35:36.plaster solution. There is so much political consensus that now is the

:35:36. > :35:44.time to do that. C if anything can be agreed and done. Reign it is

:35:44. > :35:47.great that you are doing it. Apprenticeships should be as valued

:35:47. > :35:50.as a university degree - that's the view of Business Secretary Vince

:35:51. > :35:53.Cable, who has pledged to boost the image of apprentices, as well as

:35:53. > :35:56.increasing their numbers. More than half a million people started an

:35:56. > :35:58.apprenticeship last year, and the government is aiming for almost four

:35:58. > :36:02.million to have completed an apprenticeship scheme by 2022. This

:36:02. > :36:08.is what David Cameron said to young workers at a car factory during

:36:08. > :36:11.National Apprenticeship Week. Apprenticeships, and investing in

:36:11. > :36:15.apprenticeships, is a win-win situation. It is good for you

:36:15. > :36:18.because you get the chance to acquire skills which mean you can

:36:18. > :36:22.have a worthwhile career. There is some research evidence out recently

:36:22. > :36:29.that shows that if you do a higher-level apprenticeship, it

:36:29. > :36:32.raises the earning potential in your life by �150,000. So it is a win for

:36:32. > :36:36.the people undertaking the apprenticeships. It is a win for the

:36:36. > :36:39.companies, because the government is putting money into apprenticeships,

:36:39. > :36:47.allowing companies to access great training and great skills which will

:36:47. > :36:49.be good for the companies. But it is a win for the country.

:36:49. > :36:52.This morning, Business Secretary Vince Cable was out spreading the

:36:52. > :36:56.word and giving awards to the Apprentice Team of the Year. Dr

:36:56. > :36:58.Cable is with us now, and we're also joined by Julie White, managing

:36:58. > :37:00.director of the Coventry-based concrete cutting firm D-Drill, where

:37:00. > :37:05.almost half the staff are apprentices or came through their

:37:05. > :37:09.apprentice scheme. Welcome to the Daily Politics.

:37:09. > :37:14.Vince Cable, you want to increase the number of apprentices with a

:37:14. > :37:18.target of creating almost 4 million between now and 2022, how will you

:37:18. > :37:23.do that in the shadow of the Spending Review? There has been a

:37:23. > :37:27.massive expansion since we came in to government, and although my

:37:27. > :37:29.department has come under significant cuts, I decided we

:37:29. > :37:34.wanted to prioritise apprenticeships and we have virtually doubled the

:37:34. > :37:38.number. We got half a million kids going through the system, mostly

:37:38. > :37:43.young people that some adults, this year, and there 1 million

:37:43. > :37:48.altogether. But it is not just numbers, it is about quality. We

:37:48. > :37:52.have cut out some of the shorter courses and are concentrating on

:37:52. > :37:57.advanced apprenticeships. Two or three years? You have to be the

:37:57. > :38:02.minimum of a year, there were some short courses before which were not

:38:02. > :38:06.really apprenticeships. What about the age of apprentices? You say the

:38:06. > :38:14.figures have expanded while you were in government, but the figures show

:38:14. > :38:17.that the number of apprenticeships for under 19 dropped in 2011/12.

:38:17. > :38:24.other age groups have expanded massively. There is an issue with

:38:24. > :38:29.young people. Apprenticeships is treated as a serious training

:38:29. > :38:33.opportunity, not something you walk into. We envisage a preliminary

:38:33. > :38:39.stage called a traineeship, where you get work experience and basic

:38:39. > :38:43.English and maths. Then they become an apprentice. Julie White, because

:38:43. > :38:50.apprentices, as I understand, are paid less than the minimum wage when

:38:50. > :38:56.they start, is there a danger of them being used as cheap labour?

:38:56. > :39:03.think that might be right in some larger companies, but at D-Drill we

:39:03. > :39:07.pay our apprentices �1 under a qualified apprentice. Because they

:39:07. > :39:09.can't reduce very quickly and we make money from them. So they are

:39:09. > :39:14.the lifeblood of the company and have a great feeling for the

:39:14. > :39:23.company. We keep talking about too many of the bigger companies talking

:39:23. > :39:29.about apprentices, there are 5 million SMEs out there, you should

:39:29. > :39:39.be getting us to take apprentices. Why is it such a problem for SMEs to

:39:39. > :39:39.

:39:39. > :39:43.get apprentices set up? They are often very busy. With a lot of small

:39:43. > :39:47.compass -- companies, they train somebody at great expense and time

:39:48. > :39:52.and then they drift off, they can't retain them. But big companies find

:39:52. > :39:58.it easier to lock people in. We recognise the problem. We are trying

:39:58. > :40:03.to make the system work more smoothly and we are giving them

:40:03. > :40:12.financial incentives, �1500 if they take on an extra apprentice. There

:40:12. > :40:17.is a cash incentive. We need to work on this. How easy is it for a small

:40:17. > :40:21.company to get an apprentice? paperwork is astronomical, and

:40:21. > :40:24.although the National Apprenticeship Week 's help, it is still tough. We

:40:24. > :40:30.are in one of the biggest recessions, hopefully coming out,

:40:30. > :40:33.but we need more help. �1500 is nothing when you want to bring in an

:40:33. > :40:40.apprentice, because it is the livelihood of all those companies

:40:40. > :40:46.coming through. But it is a drop in the ocean. This is from somebody...

:40:46. > :40:53.We would like to do more. But you haven't got the money. Indeed, but

:40:53. > :40:56.we are giving it a priority. This is your priority? We are doing more

:40:56. > :41:01.apprenticeships than anything else, but it is alongside supporting

:41:01. > :41:06.technology and universities, too. Julie, you mentioned this database

:41:06. > :41:13.idea, explain a little bit. If it is difficult to access the apprentices

:41:13. > :41:16.you want, or too difficult, what would a database do? Concrete

:41:16. > :41:20.cutting is very specialist, you can't get our workers from

:41:21. > :41:23.university or college or anywhere, so we have to home grow them. So we

:41:23. > :41:28.thought that once an apprentice has been through a construction company

:41:28. > :41:36.and does not have a full-time job, because some of them don't, there is

:41:36. > :41:41.not enough work, why can't I access those people? One, they have decided

:41:41. > :41:46.to go into construction, two, they usually want to work, but I have

:41:46. > :41:52.been told I can't access them because of data protection. That is

:41:52. > :41:58.ridiculous. What do you say? I think it is a good idea, I don't

:41:58. > :42:00.understand the data protection problem, I would have to look at it.

:42:00. > :42:03.We already have a talent retention scheme for qualified people. If you

:42:04. > :42:10.get a redundant engineer from the aerospace industry, they are fed

:42:10. > :42:14.into the system. We need to know about this. I don't see why we can't

:42:14. > :42:18.extend this to apprenticeships. this the way the government should

:42:18. > :42:26.be going, focusing attention and what money there is on building up

:42:26. > :42:31.apprenticeships? I think that Vince's prioritisation of this is

:42:31. > :42:36.important, not just in terms of the economy but in fairness. This is the

:42:36. > :42:41.forgotten 50%. There is an obsessive discussion about universities, which

:42:41. > :42:45.I understand, but this is the lifeblood of the economy,

:42:45. > :42:52.engineering, scientific, manufacturing sectors. Vince, cut

:42:52. > :42:55.down the bureaucracy, make it easier and go online. Let's have an

:42:55. > :43:00.exchange of names and possible potential apprentices for small

:43:00. > :43:06.companies. My one worry would be the point that you made, that last year

:43:06. > :43:10.there was an increase in 16 to 18-year-olds -- there was not an

:43:10. > :43:14.increase in 16 to 18-year-old, there was a drop. David Cameron was

:43:14. > :43:21.speaking to people that age, so we have a lot more apprentices, but

:43:21. > :43:25.many are over 25. There is a 10,000 drop in the 16 to 18-year-olds.

:43:25. > :43:30.health and safety, we cannot get them onto a construction site if

:43:30. > :43:37.they are not 18 and above. We have got one thing going against us, then

:43:37. > :43:42.another. So how will you get young people into... ? But you can go into

:43:42. > :43:47.conflict in the Army at 17 but not construction.

:43:47. > :43:51.This is massively oversimplifying, we do not want people killing

:43:51. > :43:56.themselves. What about the value of an apprenticeship? You say you have

:43:56. > :44:00.dealt with quality, but what are you doing to equate it to a business

:44:00. > :44:04.degree, for example? And that I think there is still an awful lot of

:44:04. > :44:11.snobbery around the fact that, perhaps, they are not as good as

:44:11. > :44:20.university degrees. That deeply entrenched apartheid between the

:44:20. > :44:21.qualification... We have to... them all? If you get into an

:44:21. > :44:25.advanced engineering apprenticeship, you are actually

:44:25. > :44:31.already doing a degree. The group of apprentices I met this morning, the

:44:31. > :44:35.team leader is doing a degree. He started on the shopfloor, became an

:44:35. > :44:41.apprentice and is doing a degree equivalent. That route is available

:44:41. > :44:45.for those who work hard and have the academic and vocational skills.

:44:45. > :44:49.you think apprentices are undervalued by the public bastion

:44:49. > :44:54.mark yes, the word apprentice has been so downtrodden for so long.

:44:54. > :44:58.have we made it about a degree is everything in life? The Swiss, the

:44:58. > :45:01.Austrians, the Germans, apprenticeship is everything. My

:45:01. > :45:08.whole management team have come through an apprenticeship course.

:45:08. > :45:16.Why have we devalued it so much? Vince Cable, you are quoted today as

:45:16. > :45:26.the grumpy old man. I am often cheerful and I don't regard myself

:45:26. > :45:33.

:45:33. > :45:37.as old! I take that back!But I have strong views about the needs to

:45:37. > :45:39.invest in skills and technology and backing up the brilliant work that

:45:39. > :45:41.people like Julie are doing. Will you settle with George Osborne

:45:41. > :45:43.before next week? We have not yet, that we have amicable, businesslike

:45:43. > :45:48.discussions. It is not winning or losing, hopefully we will all win.

:45:48. > :45:53.There is a compromise to be done, but you are worried about a false

:45:53. > :45:56.economy? I don't think we should even think about false economies,

:45:56. > :46:00.cutting back on badly needed investment in areas like skills. I

:46:00. > :46:05.think there is a way through and I will happily negotiate. I wouldn't

:46:06. > :46:10.say happily. But we are having good, even tempered, businesslike

:46:10. > :46:16.discussions. That is what you say in public, are you worried about going

:46:16. > :46:21.to the Star chamber? I describe that as amateur theatricals. We will

:46:21. > :46:26.continue to talk to the Treasury. They are the key in this. It is mean

:46:26. > :46:30.to ask you to do this, briefly, but what do you think is the best way to

:46:30. > :46:35.return Lloyds to private ownership? I don't want to anticipate what the

:46:35. > :46:39.Chancellor will say. And we have only got the Parliamentary

:46:39. > :46:43.commission report just coming out today. We have to try to die just

:46:43. > :46:47.that. I think most of us, looking at it, recognise that Lloyds is in a

:46:47. > :46:54.somewhat different position from RBS. But what that means in terms of

:46:54. > :47:04.timing and the detail, I think you have to wait. A quick sell-off?I

:47:04. > :47:05.

:47:05. > :47:11.think not, let's let the Chancellor say. I will not anticipate. When we

:47:11. > :47:15.hear the word psychopath we tend to think of Hannibal Lecter. But not

:47:16. > :47:21.only do our politicians share some personality trats but it's a good

:47:21. > :47:24.thing. It's a theory put forward by Dr Kevin Dutton. He argues in order

:47:24. > :47:34.to be effective our leaders have to have something of the night about

:47:34. > :47:36.

:47:36. > :47:40.them. Here's a slightly scary We're going to do something a little

:47:41. > :47:47.unusual on the Dalily politics today. We're going to take you

:47:47. > :47:55.inside the mind of one of Britain's greatest political leaders. One who

:47:55. > :48:00.allegedly shared some of the personality trats of the psychopath.

:48:00. > :48:10.Robert Hardy has played Churchill to critical acclaim. He's also got into

:48:10. > :48:12.

:48:13. > :48:18.character to take part in a study of psychology. Do I understand why in

:48:18. > :48:23.spite of his emotional nature and his good nature and his generosity

:48:24. > :48:30.of spirit, why he was able to take these killing decisions, the answer

:48:30. > :48:39.is sheer courage. Clear vision has to be done, can't bear the thought

:48:39. > :48:42.of doing it, have to do it. Call on courage. It's not just Winston. Dr

:48:42. > :48:45.Kevin Dutton and some of his colleagues asked buy yog fares of

:48:45. > :48:52.some of the world's leading political figures to take the same

:48:52. > :48:57.test on behalf of their subjects. He found that many share personality

:48:57. > :49:00.traits with criminal psychopaths. They're charming, charismatic, cool

:49:00. > :49:03.under pressure, self-confident. If you think of the jobs that

:49:03. > :49:10.politicians would have to do, some of the decision that's they make,

:49:10. > :49:14.those traits can come in handy in that line of work. Before you jam

:49:14. > :49:18.the switchboards, bear with us. Dr Kevin Dutton's point is that

:49:18. > :49:23.actually a little bit of psychopath in our politicians isn't just good

:49:23. > :49:27.for society, it's vital. In any kind of job where you've got to make

:49:27. > :49:31.tough decisions, or you've got to be cool under pressure, where you have

:49:31. > :49:38.to be charming and charismatic and not necessarily always dot thing

:49:38. > :49:42.which you would like to be liked for, I think you need psychopathic

:49:42. > :49:47.qualities in order to discharge those duties. So I think in the

:49:47. > :49:51.right context and at the right level and I think broadly speaking,

:49:51. > :49:57.politicians stick to those parameters. We have need

:49:57. > :50:02.psychopathic traits. Theory. But to those who've been up close to

:50:02. > :50:04.political greatness buy it? I go back to the time where I was in

:50:04. > :50:12.Conservative central office, the years and thousands of pounds we

:50:12. > :50:16.wasted on trying, for instance, to make Margaret Thatcher appear kind

:50:16. > :50:23.and cuddly. Complete waste of time. She wasn't kind of cuddly. She was

:50:23. > :50:26.somebody would got things done. Fay told her that she was, she had

:50:26. > :50:32.psychopathic ten densies, I suspect herries would have glinted at me and

:50:32. > :50:37.then a nod, yes, she didn't want to be loved. She didn't want to be like

:50:37. > :50:41.everybody else. Lord Dobbs created arguably the greatest political

:50:41. > :50:46.psychopath of all time. No politician wants to be like him, do

:50:46. > :50:55.they? The only people that I'm aware of, the only politicians who I'm

:50:55. > :51:01.aware of who are upset by writing about Francis Erkhart. They ask if

:51:01. > :51:05.it was them. It wasn't. It was a xozity figure of many people that I

:51:05. > :51:10.met and studies. -- studied. Our politicians might not be add or

:51:10. > :51:18.dangerous to know, but could they be dangerous to know? You might think

:51:18. > :51:24.that. I couldn't possibly comment. How very chilling. David Thompson

:51:24. > :51:28.reporting. We're joined by the psych therapist, Lucy Beresford. Is it a

:51:28. > :51:35.bit of an exaggeration to say that great political leaders share some

:51:35. > :51:41.of the personality traits of a psychopath. It is. Personality

:51:41. > :51:45.traits aren't mutually exclusive. In lots of ind steroids you want --

:51:45. > :51:48.industries you want people to be Ruthless, making quick decisions,

:51:48. > :51:52.having emotional detachment. The surgeon who operated on my wrist

:51:53. > :51:56.last week, I needed him to be detached. You probably need to have

:51:56. > :52:02.those certain traits. It doesn't mean to say you're a psychopath.

:52:02. > :52:06.Helpful? They talked about Winston Churchill, one of the greatest, is

:52:06. > :52:10.it helpful to say that the personality traits of a psychopath

:52:10. > :52:14.are those that a successful politician needs to have, so whether

:52:15. > :52:20.it's charming, ruthless, cool under pressure, self-confident, who does

:52:20. > :52:23.that remind you of? I don't think it's particularly helpful. It makes

:52:24. > :52:31.a great headline on a noon chat show politically. It's a good job you're

:52:31. > :52:35.on one then. I'm in the a psychotherapist. A psychopath.Or

:52:35. > :52:38.that. I understand the central thing here, I understand from what the

:52:38. > :52:44.background I've been given to the programme is this question of

:52:44. > :52:49.empathy and empathy being, as I understand it, the ability to

:52:49. > :52:53.understand another person's emotions and feelings. It certainly is not a

:52:53. > :53:00.helpful thing to have a lack of empathy as a politician. Have you to

:53:00. > :53:03.be able to understand the emotional effect and the feelings of -- of the

:53:03. > :53:08.people that your decisions affect. Equally, have you to be able - this

:53:08. > :53:14.applies to all leaders in industry, military, politically, probably even

:53:14. > :53:18.parents - you have to understand that while you can empathise with

:53:18. > :53:20.somebody's emotions, that sometimes, for the longer term good, whatever

:53:20. > :53:25.position you're in, including parents, have you to take a

:53:25. > :53:29.particular decision. Now I don't regard that as psychopathy. That's a

:53:29. > :53:33.degree of resolution and decisiveness, which is required in a

:53:33. > :53:38.leading position. You have talked about empathy and everybody would

:53:38. > :53:43.say absolutely. But to be a really successful leader is ruthlessness

:53:43. > :53:49.not the critical factor? No, it isn't. Decisiveness is. Resolution

:53:49. > :53:53.is. But if by ruthlessness you mean the capacity to take decisions

:53:53. > :53:58.irrespective of people's feelings or because you are incapable of

:53:58. > :54:01.understanding their feelings, that's an entirely different thing. Supreme

:54:01. > :54:08.indifference towards other people is a trait of being a psychopath. There

:54:08. > :54:12.is this great danger and it was touched on in a fabulous book by

:54:12. > :54:17.Lord Owen in sickness and in power, which examined the mental health and

:54:17. > :54:23.the physical health of quite a lot of the world's leaders over the last

:54:23. > :54:29.100 years. It looked at things like megalomania and that ruthlessness

:54:29. > :54:32.which is tied to enormous self-belief and a certain

:54:32. > :54:36.restlessness of personality and perhaps an inattention to detail,

:54:36. > :54:40.shall we say, that for some people, it's all about the big picture.

:54:40. > :54:44.Looking at Tony Blair for example, what were the key personality trats

:54:44. > :54:49.that made him, in your mind, such a successful leader in terms of the

:54:49. > :54:57.number of terms he won? I think the intellectual capacity to understand

:54:57. > :55:02.the changes in the modern world. He had an analystical mind to focus on

:55:02. > :55:05.the strategic questions that had to be addressed. He was well aware that

:55:05. > :55:07.some of the decisions he took would not be agreed with, would be

:55:07. > :55:14.upsetting to people, but also he had an understanding, and this applies

:55:14. > :55:17.toe all leaders, to decide is to divide. That's why opposition is

:55:17. > :55:18.easy compared to Government in. Opposition you can give the

:55:18. > :55:22.impression you're against everything. When you're in

:55:22. > :55:26.Government you have to take a decision. When you do that, you have

:55:26. > :55:30.to accept that there will be people who will into the gree with you and

:55:30. > :55:33.many people who might be upset by it. But if you do not take that

:55:33. > :55:37.decision, there'll be no movement forward at all. That thought for the

:55:37. > :55:42.next bit of our programme. Lucy Beresford, thank you very much. Now

:55:42. > :55:47.back to our quiz. A slightly different one from our usual style.

:55:47. > :55:54.The question was: According to you, which of the following is the most

:55:54. > :56:00.likely result of the 2015 general election. A, a Labour majority, B, a

:56:00. > :56:05.Labour/Lib Dem coalition, C, a o Conservative/Lib Dem coalition or D,

:56:05. > :56:11.a Conservative majority. Am I supposed to have said at some time?

:56:11. > :56:15.No, your judgment. On the facts at the moment would suggest a small

:56:15. > :56:22.Labour victory probably the order of 40 in the latest opinion polls. It

:56:22. > :56:27.may well be that even a minority Labour Party could form a

:56:27. > :56:32.Government. I think the most disastrous thing would be for Labour

:56:32. > :56:35.to anticipate and work towards a coalition with the liberals.

:56:35. > :56:39.Strategically that would be a very bad mistakes. There are good

:56:39. > :56:44.individuals in the liberal party, you know Vince Cable and others who

:56:44. > :56:48.have been on your programme today. But I think that if you believe that

:56:48. > :56:53.you should work towards a coalition, and therefore you plan for defeat,

:56:53. > :56:59.you will bring about that defeat. Speaking to Andrew Neil in April,

:56:59. > :57:03.you said, " Now was the time for Ed Miliband to move the party from a

:57:03. > :57:08.voice of protest to position of party as a potential Government." Is

:57:08. > :57:12.he getting there? The present signs are yes. I said that I thought we

:57:12. > :57:16.had to stop saying, we're against this and start saying what we would

:57:16. > :57:21.do. That has happened now. Ed Miliband has done. It Ed Balls has

:57:21. > :57:25.done it. You agree with those policy announcements that have been made,

:57:26. > :57:29.the caps on welfare spending, universal benefits for rich pension

:57:29. > :57:34.snerz I do. And the health and social care coming toghts. Liam

:57:34. > :57:41.Byrne saying on welfare we have to reform and relate it more closely to

:57:41. > :57:43.the contribution that you've made over the years. Stephen Twigg twig

:57:43. > :57:47.yesterday on building... Did you understand what's the difference

:57:47. > :57:51.between a parent-led academy and a free school? A free school has to

:57:51. > :57:56.have a sponsor. It has to have a significant amount of money put in

:57:56. > :58:01.by an individual or individuals. It also is part of the local planning

:58:01. > :58:05.process, sorry an acad my meets those qualifications. A free school

:58:05. > :58:09.is any school that's established at the behest of a group of parents.

:58:09. > :58:13.They have similar attributes. The key thing is that he said that some

:58:13. > :58:18.of the freedoms that have been extended under the Labour Government

:58:18. > :58:24.to academies and... Will be taken on? No, should be extended to state

:58:24. > :58:29.schools. That is the length of the day, the flexibility of the

:58:29. > :58:33.curriculum and so on. I'm all for that. So, Stephen Twigg, Andy

:58:33. > :58:37.Burnham, Liam Byrne, Ed Miliband and Ed balds, since I recommended that

:58:37. > :58:41.we come out with policy direction, I'm glad to say... They've taken it

:58:41. > :58:44.on board. On that note, we'll end it. Thank you very much to our guest

:58:44. > :58:49.of the day John Reid and all our other guests. The one o'clock news