11/07/2013

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:00:46. > :00:50.Daily Politics. Don't expect it to go down a storm. MPs have been

:00:50. > :00:53.falling over each other do say they don't want it. The regulator in

:00:53. > :01:01.charge of their paces they should get a rise of about ten grand a

:01:01. > :01:04.year. Ian Kennedy, the regulator, says refusing the increase could

:01:04. > :01:09.create another expenses style scandal. We sent Giles out with his

:01:09. > :01:12.moodbox to get your views. They don't do nothing. They promised

:01:12. > :01:16.us everything. They say they are going to do this and that, and then

:01:16. > :01:23.they make it worse. The Communities Secretary will tell

:01:23. > :01:27.us why all immigrants should learn English.

:01:27. > :01:34.And we will be taking a look at the man all politicians fear. The

:01:34. > :01:43.loudest man in Westminster. No, it's not Andrew Neil!

:01:43. > :01:45.It is debatable. All of that in the next hour. With us is Labour MP and

:01:45. > :01:50.chair of the Public Accounts Committee, one of the most powerful

:01:50. > :01:55.in Parliament, Margaret Hodge. Welcome. Let's talk first about the

:01:55. > :01:58.warning that the NHS faces a �30 billion funding gap by the end of

:01:58. > :02:04.the decade if current spending levels are maintained. The

:02:04. > :02:12.solution? Mass hospital closures and the creation of huge GP centres. You

:02:12. > :02:16.would think he would have told us all of that before he left? Indeed.

:02:16. > :02:21.I accept the analysis. We have been looking at NHS finances over the

:02:21. > :02:24.past few years. I've always said the most fragile of our public services

:02:24. > :02:28.is the NHS. Whatever the government said about giving it the same amount

:02:28. > :02:36.of money, which is questionable, I think people think they have had

:02:36. > :02:46.less. Every year since the NHS was funded -- founded, there's been a 4%

:02:46. > :02:48.

:02:48. > :02:53.increase in its expenditure. What is really the point is that if we carry

:02:53. > :03:00.on at this budget level and those changes in medicine, there's going

:03:00. > :03:06.to be a gap. Doesn't this mean that if it is decided that in Britain,

:03:06. > :03:10.the state has to make up the �30 billion gap down the political

:03:10. > :03:15.parties, in their own ways or together, need to sit down and work,

:03:15. > :03:22.what is the state not going to do now so that we can afford the 30

:03:22. > :03:30.billion we believe the state should up the NHS by? I don't think we have

:03:30. > :03:33.got to that point yet. Let me go through. I think the reorganisation

:03:33. > :03:36.has been a waste of money. We could have saved billions by not doing

:03:36. > :03:45.that. It doesn't address the pub of funding. Secondly, what does he talk

:03:45. > :03:47.about? He talks about putting much more money into prevention rather

:03:47. > :03:50.than acute services. I couldn't agree more. We looked the other day

:03:50. > :03:56.at diabetes. If everybody who had diabetes had the checks they need to

:03:56. > :04:02.make sure that the heart and cholesterol was all right, if they

:04:02. > :04:06.had that, you would save 20,000, I think the figure was, 20,000 lives

:04:06. > :04:12.per year, and you would stop people from getting the conditions they get

:04:12. > :04:20.from it not being treated. So, early intervention, I agree. No other

:04:20. > :04:24.meant as ever done it. -- no government. When you look at the

:04:24. > :04:29.NHS, the only way they have managed to get the efficiencies they have so

:04:29. > :04:35.far is by freezing pay. That's not sustainable over time. You need

:04:35. > :04:42.efficiencies. If they bought more cleverly, they would save billions.

:04:42. > :04:47.We found that in looking at something like 60 trusts, we found

:04:47. > :04:53.there were hundreds of different gloves that were being bought,

:04:53. > :04:59.hundreds of different kinds of paper. So, cleverer procurement

:04:59. > :05:06.could save millions. Then you go to... I have got to stop you. Thank

:05:06. > :05:12.you for that. It's time for our daily quiz. The

:05:12. > :05:14.question is what our Conservative MPs planning to do at next week 's

:05:14. > :05:24.PMQs to protest against John Bercow? The mind boggles. Not turn

:05:24. > :05:26.

:05:26. > :05:33.up? Wear a badge? Defaces coat of arms? Or tweet about his wife? At

:05:33. > :05:38.the end of the show, Margaret will give us the correct answer.

:05:38. > :05:44.You've got an innocent face? ! Should MPs get more money? Don't all

:05:44. > :05:52.shot that once! -- don't all shout. Independent Parliamentary Standards

:05:52. > :05:57.Authority things they should. It's things a backbencher 's page

:05:57. > :06:03.and rise from just over �66,000 per year to �74,000. -- Independent

:06:03. > :06:06.Parliamentary Standards Authority thinks. An 11% increase. It would be

:06:06. > :06:12.controversial at any time, but especially when public page rises

:06:12. > :06:17.are capped. MPs used to be able to vote down any proposed pay rises

:06:17. > :06:22.that proved unpopular with the public. That will be all of them,

:06:22. > :06:27.then. Following the expenses scandal, Independent Parliamentary

:06:27. > :06:30.Standards Authority took over how to set pay. They say that pay has

:06:31. > :06:35.fallen behind other top jobs and they get less than civil servants,

:06:35. > :06:40.police and headteachers. They also paid less than representatives in

:06:40. > :06:45.France, Germany, the US and Japan. The package does include some

:06:45. > :06:51.significant savings. It includes an end to golden goodbyes for MPs

:06:51. > :06:59.losing their seats. The �15 even in meal allowance for late sittings

:06:59. > :07:04.will also go. -- evening meal. But it's likely to be the rate --

:07:04. > :07:08.writing the basic salary that will be the focus of public attention and

:07:08. > :07:11.leaves Westminster in a tight spot. We wanted to gauge public opinion in

:07:11. > :07:17.the most scientific way possible. As it wasn't possible, we dispatched

:07:17. > :07:21.Giles with the moodbox. Should MPs get a pay rise? Maybe

:07:21. > :07:25.they will have one imposed upon them. What do the public think about

:07:25. > :07:35.that? We can guess the answer, but you never can tell with these

:07:35. > :07:54.

:07:54. > :08:04.No pay rise. Why not? I don't think it's necessary when there's loads of

:08:04. > :08:11.

:08:11. > :08:16.people who are already struggling to for it.

:08:16. > :08:25.I thought we might get a bit of that. They should get a pay rise

:08:25. > :08:27.because you want people of high calibre and quality. Why do you

:08:27. > :08:31.think that's a reasonable? You've got to attract talent. Plus, you

:08:31. > :08:38.want to make sure they are not looking for alternative methods of

:08:38. > :08:42.income. I think there are more people voting

:08:42. > :08:48.yes than I thought. Maybe because people who work in Parliament are

:08:48. > :08:54.walking past. Why absolutely not? Most of us haven't had a pay rise

:08:54. > :08:58.for three years. They have made cuts to people with disabilities and

:08:58. > :09:03.everybody else is struggling. We are supposed to be in it together.

:09:03. > :09:07.more a gut instinct. There's something to be said for them being

:09:07. > :09:12.paid enough for them not to do anything corrupt. Ultimately, at the

:09:12. > :09:15.moment, they haven't done enough to deserve it. I know I won't make many

:09:15. > :09:19.friends, but if this is what Independent Parliamentary Standards

:09:19. > :09:23.Authority once, this is what everybody should get. Brave man.

:09:23. > :09:33.At the end of the day, they promise of everything, they say they are

:09:33. > :09:39.

:09:39. > :09:44.going to do this and that, and when came out on top. No to a pay rise.

:09:44. > :09:51.There were some arguments. But this moodbox is very clear. No, you don't

:09:51. > :09:57.get a pay rise, MPs. Those are the views of the great

:09:57. > :10:01.British public. At least, some of them. Earlier, the head of the

:10:01. > :10:04.Independent Parliamentary Standards Authority had this to say.

:10:04. > :10:08.Body after body, organisation after organisation, over the past 15

:10:08. > :10:15.years, has recommended that there should be appropriate pay rises for

:10:15. > :10:24.MPs. Governments of the day have not followed those and looked -- not

:10:24. > :10:27.implement them. They chose always to say that there is a good political

:10:27. > :10:33.reason why they shouldn't, and at the same time, of course, we know

:10:33. > :10:37.what happened - allowances grew and grew, came more bloated. That ended

:10:37. > :10:44.in tears in 2009. Enter Independent Parliamentary Standards Authority,

:10:44. > :10:49.with a remit to put things right. are joined by a businessman who was

:10:49. > :10:55.a board member. Michael Brown used to be a Conservative MP. Margaret

:10:55. > :11:03.Hodge is still with us. Michael Brown is our most loyal viewer. In

:11:03. > :11:08.fact, he's our only loyal viewer. There's never a good time to

:11:08. > :11:13.introduce a pay rise for MPs, is that? No, but this is a bad time.

:11:13. > :11:20.It's such a difficult issue. At when you ask all public servants to take

:11:20. > :11:25.a 1% pay increase, it just seems inappropriate. -- but when you ask.

:11:25. > :11:29.But it's a difficult issue. It's difficult to have a grown-up debate

:11:29. > :11:34.on what we should get paid, how we should get selected, how political

:11:34. > :11:38.parties should be funded. That whole process and the way in which we run

:11:38. > :11:45.our politics, which is hugely important for society... You should

:11:45. > :11:50.have done it in the era of no more boom and bust. Remember that?

:11:50. > :11:55.always better in the past. I know, I know. But these are such hard times.

:11:55. > :12:00.I think it's difficult. This pay rise doesn't come in until after the

:12:00. > :12:05.next election, meaning the election will be partly people like me asking

:12:05. > :12:09.MPs or people standing for election, if elected, will you

:12:09. > :12:18.accept the pay rise? The people who say yes, the local paper we go for

:12:18. > :12:23.them. People will feel obliged to say no. It is a nonsense time.

:12:23. > :12:27.real issue is there is never a good time. Look at what's happening this

:12:27. > :12:32.time. The public is being consulted. The document today is a

:12:32. > :12:39.consultation, not a decision. If the vast majority of the public have an

:12:39. > :12:41.Aga and for not increasing MPs' pay. -- an argument for not increasing

:12:42. > :12:50.MPs' pay, I am sure the Independent Parliamentary Standards Authority

:12:50. > :12:54.will have something to say to that. If people were told what MPs did,

:12:54. > :12:58.they thought they should get paid more. If the public are educated in

:12:58. > :13:04.the issues, which is what this paper does, I think they will come to the

:13:04. > :13:11.right conclusion. That they should get a pay rise? They will come to

:13:11. > :13:18.the right conclusion. It is the wisdom of crowds. No, it's

:13:18. > :13:24.democracy. Democracy doesn't mean the right conclusion, it means a

:13:25. > :13:32.democratic conclusion. They answer the severally the same thing. -- the

:13:32. > :13:41.aren't necessarily the same thing. Margaret Hodge is saying we are into

:13:41. > :13:46.the third year of a 1% pay rise freeze. If you are in the private

:13:46. > :13:50.sector, average pay rises in the private sector are about 1% as well.

:13:50. > :13:58.So you must have a whole package, not just pay. One of the biggest

:13:58. > :14:03.problems was the so-called gold-plated MPs' pensions. It would

:14:03. > :14:08.be unfair to say we are going to take away your pension rights and

:14:08. > :14:17.not compensate you. The net result of these recommendations is that it

:14:18. > :14:27.is broadly neutral. I'm told it adds half a million overall. He is

:14:28. > :14:29.

:14:29. > :14:37.rounding. If you were standing for election and you asked them if

:14:37. > :14:47.elected, will you accept this 9% pay rise? What would your answer be?

:14:47. > :14:47.

:14:47. > :14:56.Yes. I was put in that position in almost every general election. When

:14:56. > :15:02.I got elected to Parliament in 1979, the salary was �6,700. When I sought

:15:02. > :15:06.pre-election in 1983, it had doubled �14,000. During that time, 20% of my

:15:06. > :15:11.constituents were made redundant. I had to bite the bullet. The reason I

:15:11. > :15:21.did that was because if you get into an auction, a member of Parliament

:15:21. > :15:26.

:15:26. > :15:34.being forced to say they will do it for less than another politician...

:15:34. > :15:38.Margaret is worth every penny. But seriously, the doctor in her

:15:38. > :15:41.constituency, the headmaster in her constituency, in one of the

:15:41. > :15:51.secondary schools, the borough commander of the police force, they

:15:51. > :15:53.

:15:53. > :15:57.are all paid 6-figure salaries. Margaret, are you standing in the

:15:57. > :16:01.next election? And will you accept the pay rise?

:16:01. > :16:05.This is where I agree with Michael. It is dangerous. Our leaders should

:16:05. > :16:12.not enter into a Dutch auction, because you end up with people

:16:12. > :16:18.putting themselves forward for 20,000. But you could afford to. I

:16:18. > :16:24.am in a lucky position. But then you end up with the rotten boroughs we

:16:24. > :16:31.had in the past. So would you take the pay rise? I would do what all

:16:31. > :16:40.MPs do. I don't want a Dutch auction between MPs. But your leader says he

:16:40. > :16:47.will not accept it. I don't agree with him or Cameron or Clegg.

:16:47. > :16:50.Cameron and Mr Clegg. The Right Honourable members. If David Cameron

:16:50. > :16:54.doesn't want this pay increase, he can do what Margaret Thatcher used

:16:54. > :16:59.to do and put legislation before the House of Commons and their members

:16:59. > :17:04.of Parliament to accept or reject it. Is there not a risk that

:17:04. > :17:09.political leaders like Mr Miliband and Mr Cameron will instruct their

:17:09. > :17:18.candidates not to accept the pay rise? I hope that doesn't arise. But

:17:18. > :17:21.is there a risk? Let's wait and see. At this point in time, we are never

:17:22. > :17:25.going to win. We did it ourselves, and everybody thought we did it

:17:25. > :17:35.badly. We set up an independent organisation over which we have no

:17:35. > :17:35.

:17:35. > :17:39.control. But I really think the Dutch auction point is so important.

:17:39. > :17:48.We don't want to end up with politics where you can choose what

:17:48. > :17:55.your salary is. We will come back to rotten boroughs. It is strange that

:17:55. > :18:00.the people regulating MPs' pay, and MPs earn �66,000 at the moment, Ian

:18:00. > :18:05.Kennedy gets �72,000 a year for a two-day week. How does that work?

:18:05. > :18:15.The director of communications on a never seems to communicate with

:18:15. > :18:17.

:18:17. > :18:25.anybody, we can't get him on the programme, is on 85,000. So a PR

:18:25. > :18:31.person gets way more than an MP. are not talking about the salaries

:18:31. > :18:39.of the regulators. That is a matter of public record. It fits with the

:18:39. > :18:45.market. Why do you need a director of communications? Because we have

:18:45. > :18:55.to deal with programmes like you. You don't. You are not with them any

:18:55. > :19:01.more. I happily came on this programme when I was with IPSA, and

:19:01. > :19:05.there is an enormous communication job to do with the public. I agree.

:19:05. > :19:10.There are question marks on why on earth we have such an expensive

:19:10. > :19:16.hobby. A lot of people feel unhappy about the cost of the regulator. It

:19:16. > :19:21.is less than it was before, and our accounts were not qualified by the

:19:21. > :19:26.National Audit Office. We have reduced pay a 7 million a year, so

:19:26. > :19:31.the costs are down. I will give you the final word. Remember, many

:19:32. > :19:36.members of Parliament don't do the job until the day of their

:19:36. > :19:44.retirement. They are retired by their voters. I hope Margaret is

:19:44. > :19:49.therefore ever. He is a big fan! But they are getting rid of the big

:19:49. > :19:59.redundancy payment. Do you agree with that? I got six months' pay

:19:59. > :20:03.when I got kicked out. Not as high as some of the BBC. If you want to

:20:03. > :20:07.encourage people into politics and you don't remunerate them, you will

:20:07. > :20:16.just get research assistants becoming MPs. Speaking of the BBC,

:20:16. > :20:22.that is what we are going to move on to. Seamless!

:20:22. > :20:24.Now, our guest of the day, Margaret Hodge, was busy laying into BBC

:20:24. > :20:31.bosses yesterday, metaphorically, when they gave evidence to the

:20:31. > :20:34.committee over severance pay. He was a flavour of that debate.

:20:34. > :20:41.Could you explain why, in your professional judgement, it was value

:20:41. > :20:44.for money to pay Roly Keating beyond his contractual term? Because if we

:20:44. > :20:48.didn't pay him money to go, you would stay. We would then be making

:20:48. > :20:55.him redundant when that will closed 12 months later, and therefore the

:20:55. > :21:03.cost would be, in addition to what we paid him, �500,000. But with all

:21:03. > :21:12.your experience, you have not come from an easy organisation, why did

:21:12. > :21:18.you not just put your foot down? are head of HR. The overwhelming

:21:18. > :21:28.focus was to get numbers out of the door as quickly as possible. But it

:21:28. > :21:30.

:21:30. > :21:34.is licence fee payers' money. It is our money. I understand that, and

:21:34. > :21:38.the BBC has accented many of the criticisms within the National Audit

:21:38. > :21:48.Office report that we were too generous. Culturally, as Lucy Adams

:21:48. > :21:56.and others have said, I think we lost the way. We got bedevilled by

:21:56. > :22:03.zeros on various salaries. One of the issues was that there was not

:22:03. > :22:10.enough grit at the centre of the organisation. There has not been a

:22:10. > :22:16.senior remuneration committee. Things were devolved. I will be

:22:16. > :22:20.bringing that back to a proper level at the heart of the organisation.

:22:20. > :22:25.We did ask someone from BBC management to come onto the show,

:22:25. > :22:30.but they declined. So we are delighted to have the media

:22:30. > :22:34.commentator Steve Hewlett with us. Before we come to you, Margaret

:22:34. > :22:39.Hodge, we saw you grappling with the senior executives. Overall, what was

:22:39. > :22:44.your impression as to why some senior BBC executives were given

:22:44. > :22:48.such high severance payments? I think there was just a cosy culture

:22:48. > :22:51.at the top. They had known each other all their working lives, and

:22:51. > :22:56.they rubbed each other's backs and thought somehow, they were

:22:56. > :23:00.entitled, although as I said on that clip, it is not their money, it is

:23:00. > :23:06.the licence fee payer's money. thought they were entitled to the

:23:06. > :23:09.biggest deal they could get, and it was outrageous. The most outrageous

:23:09. > :23:15.thing was probably G3 who got hundreds of thousands and then went

:23:15. > :23:21.straight out of the door into other well-paid jobs, and think they are

:23:21. > :23:27.entitled to it? Please! We will come back to the issue of the culture and

:23:27. > :23:31.how this sort of thing arose. want to come back to the issue of

:23:31. > :23:37.how severance payments were made beyond people's contracts. Not only

:23:37. > :23:41.were they high, but they went well beyond what was due. Mark Thompson,

:23:41. > :23:47.the former director-general, was the head of the BBC at the time. I

:23:47. > :23:50.understand you have his statement? do. There is no doubt that people's

:23:50. > :23:55.payments went beyond their entitlements. That has been

:23:55. > :24:00.established beyond doubt. In the most high-profile case, the deputy

:24:00. > :24:06.director general, Mark Byford, who was the one who departed with close

:24:06. > :24:13.to �1 million, they decided to make him redundant in October 2010. He

:24:13. > :24:17.then left in August 2011 and was then paid, in addition to his

:24:17. > :24:21.redundancy entitlement, he was paid for 12 months in lieu of notice. So

:24:21. > :24:26.the National Audit Office said Hang on, you decided to make him

:24:26. > :24:29.redundant in October. He then works for eight months and you pay him 12

:24:29. > :24:35.months' notice. Shouldn't you have started the notice period and the

:24:35. > :24:43.clock ticking? In other words, he gets 20 months' pay when he was only

:24:43. > :24:51.entitled to 12. How did that happen? The issue yesterday was, were the

:24:51. > :24:57.trust aware of what was going on? They claimed they did not know and

:24:57. > :25:00.that Mark Thompson had not informed them fully. They invited Margaret

:25:00. > :25:06.Hodge to ask Mark Thompson to come to the committee and spill all. When

:25:06. > :25:10.Margaret said, has Mark Thompson live? They said, we are not saying

:25:10. > :25:14.he has lied, but there is an inconsistency. Mark Thompson is now

:25:14. > :25:19.president of a big New York company, and he said today in a statement, I

:25:19. > :25:22.look forward to laying the facts in front of the committee. I would like

:25:22. > :25:27.to clear up firstly that the BBC trust was fully informed in advance,

:25:27. > :25:33.in writing as well as orally, about the proposed severance packages for

:25:33. > :25:36.Mark Byford. They were told it was proposed that formal notice would

:25:36. > :25:41.not be served immediately, but in the following year. An e-mail from

:25:41. > :25:47.my office to the head of the trust unit makes this clear. I made sure

:25:47. > :25:51.the trust were aware of all potentially contentious issues,

:25:51. > :25:55.including the fact that formal notice would not be served at once.

:25:55. > :26:05.I have a copy of the e-mail here. This is significant because if the

:26:05. > :26:08.

:26:08. > :26:13.trust were aware that the Byford lied. They lied? They said they were

:26:13. > :26:18.not aware. Precisely was aware of what, goodness only knows, and the

:26:18. > :26:27.best of luck to you when you get down to finding out. But Mark

:26:27. > :26:32.Thompson says they were informed, and they are saying, he misled us.

:26:32. > :26:36.These two cannot both be right. It could not be worse that the BBC. It

:26:36. > :26:40.is the most unedifying spectacle. It is almost down to name-calling. That

:26:40. > :26:43.statement is electrifying in the light of what you were told in front

:26:43. > :26:46.of the committee, because the BBC trust member Anthony Fry was

:26:46. > :26:51.questioned about a letter from Mark Thompson, the former

:26:51. > :26:56.director-general, to the trust, which said the payoff to Mr Byford

:26:56. > :27:01.was within contractual arrangements, when it was not. They can't both be

:27:01. > :27:06.right? We are in a really difficult position. Either Mark Thompson did

:27:06. > :27:10.or did not tell the trust, and if, as he alleges, he did tell the

:27:10. > :27:17.trust, the trust, in their evidence yesterday, asserted that they were

:27:17. > :27:24.not told. We have another issue with the BBC, which is the digital media

:27:24. > :27:28.initiative, this attempt to use archive material, where 100 million

:27:28. > :27:33.has been spent and nothing gained. That was also on Mark Thompson's

:27:33. > :27:38.watch, so we want to bring him back about that. He has agreed to come

:27:38. > :27:42.back. I was not going to return to this until we have the relevant

:27:42. > :27:45.reports for the digital media initiative but given what Steve

:27:45. > :27:50.Hewlett has uncovered this morning, we will have to return to this more

:27:50. > :27:55.quickly. I want all the players in front of us so that we try to

:27:55. > :28:05.uncover the truth. You want Mark Thompson sitting next to members of

:28:05. > :28:05.

:28:05. > :28:08.the trust. And also the nonexecutive members of the executive committee.

:28:08. > :28:15.Marcus aegis, the ex-chairman of Barclays bank, is said to have

:28:15. > :28:20.signed off all these deals. He would think these deals were peanuts. I

:28:20. > :28:30.would like to hear his side of the story. It would also be important to

:28:30. > :28:32.

:28:32. > :28:38.hear from Michael Rylands, the director-general at the time.

:28:38. > :28:43.does this do to public trust in the BBC? Margaret has hit the nail on

:28:44. > :28:51.the head. If you put together the digital media initiative, �100

:28:51. > :28:54.million written off, as time goes on, we may see that slightly more

:28:54. > :29:00.benefit has accrued, but nevertheless, it is the

:29:00. > :29:03.mismanagement of �100 million. The trust have to say they are sorry.

:29:03. > :29:09.Then just six weeks later, they are there again because it appears,

:29:09. > :29:14.following another NAL enquiry, that the BBC have paid executives more

:29:14. > :29:20.than they were titled to. It looks like a structural, systemic

:29:21. > :29:25.failings. And that is the problem. I was talking to somebody who is big

:29:25. > :29:29.in the world of politics, a journalist, who says the damage that

:29:29. > :29:35.has been done to the BBC by the combination of factors is not

:29:35. > :29:40.insignificant. When staff pay has been all but frozen for the last few

:29:40. > :29:43.years. When arguing about who knew what, the big picture is that too

:29:43. > :29:50.much was paid to senior executives in their severance packages, more

:29:50. > :29:55.than they needed. To give the context, it was �25 million over a

:29:55. > :30:01.three-year period to 150 senior executives. That is the same as half

:30:01. > :30:05.the total expenditure on Radio 4 programming. We believe that figure

:30:05. > :30:15.hanging in the air. Now we know we are doing this programme for three

:30:15. > :30:17.

:30:17. > :30:24.and sixpence and a Lucky Bag! Leonardo DiCaprio uses them a lot.

:30:24. > :30:31.MPs use them. So the 1.3 million people in the UK. They are supposed

:30:31. > :30:37.to be an aid to quitting smoking. Now the EU is trying to pacify

:30:37. > :30:43.electric cigarettes as medicines. -- classifier. Let's remind ourselves

:30:43. > :30:53.of Laurie Penny 's appearance on the Daily Politics last year, electronic

:30:53. > :30:56.

:30:56. > :31:04.cigarette in hand. This is not a real cigarette. If any

:31:04. > :31:08.of you are calling the police it a fake cigarette. It's the future. I'm

:31:08. > :31:16.on a 1-person mission to make them popular. What's your vision on

:31:16. > :31:24.this? I'm in the same position. I hate to do agree with George on

:31:24. > :31:32.anything... That might not be a real cigarette but it ain't doing you any

:31:32. > :31:38.good! Oh, it's in the! Joining me now is

:31:38. > :31:46.Stephen Williams and the director of a small business selling Ellington

:31:46. > :31:55.cigarette. Why do people smoke the cigarettes? -- selling eggs Tronic

:31:55. > :32:04.cigarettes. There's a lot of stigma with traditional cigarettes. A lot

:32:04. > :32:06.of people try the traditional chewing tobacco or chewing gum,

:32:06. > :32:13.medicinal spray and things like that. They find it doesn't do the

:32:13. > :32:16.trick. Electronic cigarettes brings another sensation to smoking.

:32:16. > :32:24.just clarify, do people smoke these cigarettes to get off smoking the

:32:24. > :32:30.traditional cigarettes, or as an alternative? There's two sides to

:32:30. > :32:33.the coin. We sell ours as an alternative to smoking. We don't say

:32:33. > :32:43.it will help you to quit smoking, because we don't think it will. It's

:32:43. > :32:43.

:32:43. > :32:46.an alternative. Are they health consequences? None have been proven.

:32:46. > :32:52.They are potentially a good thing if they help people to wean themselves

:32:52. > :32:57.off the real thing. We know that tobacco, if consumed as the

:32:57. > :33:07.manufacturer intends, if the only product that will shorten your life

:33:07. > :33:11.span. -- is the only product. The tobacco companies are busily buying

:33:11. > :33:14.up all of the manufacturers of these products. They are only doing that

:33:14. > :33:21.because they believe it is in their interests. They want to normalise

:33:21. > :33:27.the experience of smoking again. Last week, when I got home from

:33:27. > :33:34.Westminster, I saw a big advert of somebody who, superficially, it

:33:34. > :33:41.looks like they were smoking. It was an electronic cigarette.

:33:41. > :33:49.You can smoke them indoors? Correct. There is no damage to passive

:33:49. > :33:54.smokers? There's no evidence so far. We would support them being

:33:54. > :34:02.classified as a medicinal product. Our products are an alternative is

:34:02. > :34:06.to smoking. We don't make any claims that the product will help you to

:34:06. > :34:11.quit smoking. The majority of our customers don't feel that way.

:34:11. > :34:20.you think there are any health dangers? That's what we need to look

:34:20. > :34:30.at. There has been a review of all iniquity in products, -- nicotine

:34:30. > :34:33.

:34:33. > :34:41.products. You would only get them by prescription? I'm not sure I would

:34:41. > :34:48.go that far. This is something none of us had heard of two years ago. I

:34:48. > :34:53.certainly think the advertising needs to be looked at. I wouldn't

:34:53. > :35:00.want them to get a back door way of normalising the appearance of

:35:00. > :35:07.smoking, or, for instant, targeting them at children. At the moment,

:35:07. > :35:14.these can be advertised in children 's magazines.

:35:14. > :35:19.I was a cigarette smoker. I gave up, oh, God, 30 years ago, and I still

:35:19. > :35:28.think of myself as an addict. I worry would be just that cash that

:35:28. > :35:32.you go back to the feel -- that you go back to the feel of having a

:35:32. > :35:42.cigarette. I have seen people in restaurants complaining because they

:35:42. > :35:43.

:35:43. > :35:49.think somebody is smoking, but in fact they are vaping. For us, we

:35:49. > :35:53.think that overregulation would make it difficult for us to obtain a

:35:53. > :36:01.license. It would price us out of the market. The price of electricity

:36:01. > :36:09.cigarettes, getting the licence, the price would move on to the

:36:09. > :36:18.consumers. -- electronic cigarettes. And you smoke them? And you feel all

:36:18. > :36:26.right? Yes, and I feel fine. haven't. I've seen other MPs doing

:36:26. > :36:31.it. I'm not trying it. Are you? I don't think we will have them in the

:36:31. > :36:36.studio. Should English MPs have a veto legislation applying only to

:36:36. > :36:39.England? According to reports, that is what the government is

:36:39. > :36:44.considering. They say it's unfair that other MPs can determine laws

:36:44. > :36:49.affecting England. But English MPs have no say on devolved matters and

:36:50. > :36:54.are looking for ways to redress the balance. Tom Harris and Conservative

:36:54. > :36:58.MP Harriett Baldwin are on College Green to debate the proposals.

:36:58. > :37:03.Welcome to both of you. Harriett Baldwin, these proposals would

:37:03. > :37:07.create two tiers of MPs in Parliament. You would reduce MPs

:37:07. > :37:16.from Wales, Northern Ireland and Scotland to one day per week MPs.

:37:17. > :37:23.haven't see the -- seen the proposals. But we think they did not

:37:23. > :37:30.propose creating categories of MPs. A proposed changes to the order in

:37:30. > :37:34.the House of Commons. Let's call this the English question. Let's

:37:34. > :37:39.make sure that any legislation in Westminster that applies only to

:37:39. > :37:45.England is carried by a majority from English MPs. That sounds

:37:45. > :37:48.sensible, Tom Harris? It's more complicated than that. Take the Same

:37:48. > :37:56.Sex Marriage Bill, which applied only to England and Wales. There

:37:56. > :38:00.were another -- number of technical aspects regarding Scotland. It is

:38:00. > :38:06.difficult to get a bill that only applies to England. I can think of

:38:06. > :38:13.lots! There are plenty of these bills for England on health and

:38:13. > :38:17.education, for example. And the last health Bill, which only apply to

:38:17. > :38:21.Ian, had technical provisions applying to Scotland. It included

:38:21. > :38:29.the training of certain professionals. Let's go back to

:38:29. > :38:36.Isaac principles. The Scottish Parliament was introduced to

:38:36. > :38:44.address... England does not suffer, never has suffered, will never

:38:44. > :38:48.suffer, a democratic deficit. The only time that English teeth -- MPs

:38:48. > :38:56.could be before the -- defeated would be if every single non-English

:38:56. > :39:06.MP plus 209 image MPs got together and voted against it. It is unfair.

:39:06. > :39:09.

:39:09. > :39:16.Labour MPs, wouldn't it? This is about fairness for England. It has

:39:16. > :39:21.rarely been an issue in the past. I would expect it to be rarely an

:39:21. > :39:25.issue in the future. But when it is, it should be highlighted. It is a

:39:25. > :39:31.cost that usual crisis that is waiting to happen. It is something

:39:31. > :39:38.that needs to be dealt with in this Parliament. It's also more and more

:39:38. > :39:46.the case that with more devolution but just as Scotland but, as the

:39:46. > :39:52.silk commission recommends, Wales, there will be more legislation that

:39:52. > :39:59.refers to England only. All sorts of things apply to England only. It's

:39:59. > :40:04.important that we tackle this thorny question now. Well done for shouting

:40:04. > :40:10.over that motorbike. Tom Harris, isn't this, on the other hand,

:40:10. > :40:15.disastrous for Labour? They rely on their MPs in Scotland and Wales. You

:40:15. > :40:20.would find it difficult to get a majority in England of English MPs.

:40:20. > :40:25.I'm sure that's the case. Let's go back to another first principle. The

:40:25. > :40:30.Prime Minister is known as a first among equals. They have the same

:40:30. > :40:34.voting rights as other members. If you lose that, you lose the

:40:34. > :40:38.functionality of the House of Commons. We have been here before.

:40:38. > :40:42.For 50 years, a devolved Northern Ireland Parliament had its own

:40:42. > :40:46.primers do but still sent MPs to Westminster and nobody ever raised a

:40:46. > :40:53.question about old stuff. Why was that? Was it because the Ulster

:40:53. > :41:00.Unionist MPs to the Conservative whip? -- took the Conservative

:41:00. > :41:07.whip? It's been raised for 100 years.

:41:07. > :41:17.There's never been a Labour majority without a majority of Labour MPs in

:41:17. > :41:23.England. Thank you both very much. Lunch is on the way. Not clear the

:41:23. > :41:31.Australians will make it to lunch, however. They have one wicket to

:41:31. > :41:36.fall. The Coalition have a target to get net migration down by the tens

:41:36. > :41:40.of thousands by 2015. They are making progress. But what about

:41:40. > :41:44.those who decide to move here? Should they be forced to learn

:41:44. > :41:54.English? Should they be helped to integrate into the community? Eric

:41:54. > :41:55.

:41:55. > :41:59.Pickles thinks so. This is his soapbox.

:41:59. > :42:04.Speaking English is essential to living and working in Britain. It is

:42:04. > :42:09.a passport to prosperity, and without it, people are very limited

:42:09. > :42:15.in what they can do. In some communities, learning English

:42:15. > :42:25.doesn't happen. This is not right. I believe that if you want to live

:42:25. > :42:33.

:42:33. > :42:37.here, you must learn to speak the east of London, which is there to

:42:37. > :42:43.help people to learning which. It runs a number of courses, including

:42:43. > :42:50.mental ring services, and some specifically to help mothers who

:42:50. > :42:57.have migrated to this country and have virtually knowingly should.

:42:57. > :43:01.-- no English. Learning the language is important. When you come to a

:43:01. > :43:06.country, one of the things to get to grips with first and foremost is the

:43:06. > :43:12.language. There are a lot of other areas. What we provided a range of

:43:12. > :43:16.life skills to help the women to integrate.

:43:17. > :43:22.Looking at the bigger picture, the census of two years ago showed that

:43:22. > :43:27.a crossing in and Wales, 2% of the population can't speak English or

:43:27. > :43:37.speak it poorly. When you look across London, the figure jumps to

:43:37. > :43:38.

:43:38. > :43:46.9%. That is 150,000 people who can't speak English, can't communicate

:43:46. > :43:49.with their fellow citizens. That is going to create difficulties for

:43:49. > :43:55.people even going to the shops. They are going to have difficulty talking

:43:55. > :44:00.to their neighbours. It's important for me. I come from a

:44:00. > :44:06.different country, different background, different language. This

:44:06. > :44:10.country is new for me. I want to know about this country, about the

:44:11. > :44:15.transport, about the shopping, and other things. I want to make

:44:15. > :44:19.friends. It's also good for the wider

:44:20. > :44:29.community. I want people to live together and work together, to

:44:29. > :44:32.integrate and form friendships and get along with each other. How can

:44:32. > :44:36.you interact with people from other cultures and countries if you can't

:44:36. > :44:42.talk to them? There are also financial benefits. Translation

:44:42. > :44:48.services are very expensive. Independent research shows that

:44:48. > :44:58.local authorities alone spends nearly �20 million per year

:44:58. > :45:03.

:45:03. > :45:05.translating a variety of documents from English to 75 languages. This

:45:05. > :45:07.money will be better directed to help all residents and all

:45:08. > :45:17.communities. But it isn't just about the money. It's about making Britain

:45:17. > :45:21.a better place to live. That is what centres like this are doing.

:45:21. > :45:27.Eric Pickles joins us now. Is it that migrants are refusing to learn

:45:27. > :45:31.English, or is there not enough provision? We need encouragement. It

:45:31. > :45:34.is perfectly possible to survive in this country, to be able to shop in

:45:34. > :45:38.this country, to receive entertainment without speaking

:45:38. > :45:43.English. But it does mean that their life chances are so much more

:45:43. > :45:53.narrow. And it means their children's life chances are

:45:53. > :45:53.

:45:53. > :45:56.narrowed. George Osborne wants to encourage them with the stick rather

:45:56. > :45:59.than the current. He says if you are not prepared to learn English, your

:45:59. > :46:02.benefits will be cut. That is not encouragement, that is from marching

:46:02. > :46:11.you to the English classes, isn't it? That is tough love. It is about

:46:11. > :46:14.getting people to understand the reality. Encouragement will be

:46:14. > :46:19.there, but they should not see this in the way of getting a benefit. It

:46:19. > :46:25.is a way to become a full citizen. I don't want people to forget where

:46:25. > :46:30.they come from all their own language. I want them to be a

:46:30. > :46:35.vibrant part of British society and have an equal chance. How would you

:46:35. > :46:42.judge if someone's English was not adequate enough that they did not

:46:42. > :46:47.deserve their benefits? Well, I am not a linguist, but I think being

:46:47. > :46:50.able to have sufficient English to be able to do the job you are

:46:50. > :47:00.employed for. For example, for your job, I would expect them to be very

:47:00. > :47:01.

:47:01. > :47:05.fluent. He is still taking classes! And showing enormous progress.

:47:05. > :47:15.have been arguing for a long time that it is really important for

:47:15. > :47:19.

:47:19. > :47:22.migrants who settle here, and I am one myself, that you learn the

:47:22. > :47:25.language. But let me say two things to Eric that I have argued for a

:47:25. > :47:28.long time. For women, it is a sensitive issue, because they don't

:47:28. > :47:30.get a job. They are often at home. If they are good mums, it is

:47:30. > :47:34.important for them to talk to teachers. How would you get them to

:47:34. > :47:38.learn? Let me tell you how we have tried to do it and the problems we

:47:38. > :47:41.have faced. We had a lot of English provision in our children's centres,

:47:41. > :47:48.where the mums were encouraged to come when the babies were born, and

:47:48. > :47:52.start learning English. That provision has been cut because local

:47:52. > :47:54.authorities have faced bigger cuts than anybody else. And it is not

:47:55. > :48:02.because I have an inefficient council that is spending money

:48:02. > :48:05.elsewhere. We are looking at different ways of trying to get

:48:05. > :48:15.English across. I launched a competition at the beginning of the

:48:15. > :48:17.

:48:17. > :48:20.year to find unique ways to get English going. The young lady that

:48:20. > :48:23.was interviewed, she was, up to 18 months ago, a newsreader on

:48:23. > :48:26.Pakistani television. She came to this country with not much English,

:48:26. > :48:33.and it demonstrates what is possible. You are avoiding the

:48:33. > :48:43.issue. Margaret, you see everything in this narrow political way. That

:48:43. > :48:45.

:48:45. > :48:48.was a local choice. We are making a difference. If it is all going to be

:48:48. > :48:51.about the wicked cuts, we will not make progress. I have been doing

:48:51. > :48:54.this work for a long time, so frankly, we should be encouraging

:48:54. > :49:02.this and not blaming everything on economic circumstances. I doing

:49:02. > :49:06.courage this. -- I do encourage this. I think it is essential for

:49:07. > :49:12.community go huge on, but the reality on the ground, Eric, in the

:49:12. > :49:15.children's centre I visited recently, is that when you really

:49:15. > :49:22.cut local authority expenditure so badly, they are forced back to their

:49:22. > :49:32.statutory duties and they cut out all this provision which is

:49:32. > :49:33.

:49:33. > :49:40.non-statutory. That is a very old-fashioned view. Let me ask you,

:49:40. > :49:44.is there not at least a chance, at a time when cuts are all over the

:49:44. > :49:49.place, and when local government has had its grant frozen, that some

:49:49. > :49:55.councils may decide, one way to save a few bob is by not doing English

:49:55. > :49:58.classes? Then they are very foolish councils, because it is important

:49:58. > :50:08.that we don't find ourselves with a subclass where people of enormous

:50:08. > :50:13.

:50:13. > :50:16.talent can't get jobs. They are not foolish. It is wrong to say

:50:16. > :50:18.everything has to be done by local authorities. We are looking at

:50:18. > :50:22.different ways of doing it, and it is a very old-fashioned view that

:50:22. > :50:26.Margaret is expressing. Don't talk over me. You and I used to talk

:50:26. > :50:36.about this issue is a lot. I am not saying local authorities should

:50:36. > :50:37.

:50:37. > :50:40.deliver it. It is important for voluntary organisations to be

:50:40. > :50:42.involved. I am just saying that the reality on the ground in my

:50:42. > :50:51.community is that they are being forced back to only funding

:50:51. > :50:55.statutory services. You have both had to say. Very interesting.

:50:56. > :51:00.Now, onto a pressing constitutional matter. How do we hold our

:51:00. > :51:10.politicians to account? As we saw earlier, our guest today, Margaret

:51:10. > :51:24.

:51:24. > :51:26.Hodge, head up the Public Accounts Committee, who rigorous Lee

:51:26. > :51:28.interrogate officials and ministers. But there is another essential part

:51:28. > :51:30.of the British political system that keeps MPs in check. He is usually

:51:30. > :51:32.found loitering outside government departments, or waiting at sunrise

:51:33. > :51:35.on cabinet ministers' doorsteps. And he is armed with nothing more than

:51:35. > :51:37.the simple ray mac of truth and a trusty foghorn voice fair play. Very

:51:38. > :51:47.poetic! Rarely seen, but always heard, he is the BBC's Chief

:51:47. > :51:51.Parliamentary Stalker, Gobby. You have heard him. Now meet him,

:51:51. > :52:00.BBC producer Paul Lambert, known in the Westminster village as Gobby. I

:52:00. > :52:10.wonder why? Has George looked after you? Are the children happy? Are the

:52:10. > :52:13.

:52:13. > :52:17.soldiers happy? His shout outs are as much a part of TV news here as

:52:17. > :52:20.pictures of Big Ben. The point is to fill in the pieces in a TV bulletin

:52:20. > :52:26.piece that you have not got pictures to fill in. You know someone will

:52:26. > :52:30.not say anything, but you just need something. That will be the office.

:52:30. > :52:39.It does involve a lot of standing around, though, which means there is

:52:39. > :52:41.plenty of time to hear some of Gobby's famous war stories. During

:52:41. > :52:49.Blair's last conference, he walked across after the speech and I

:52:49. > :52:51.shouted across, oi, Bill, are you going to miss Tony? But sometimes it

:52:51. > :53:01.is very physical, like this hilarious attempts to get pictures

:53:01. > :53:04.

:53:04. > :53:12.of David Cameron jogging. Jogging, boys! Or dangerous. Watch the wall.

:53:12. > :53:17.Let's see that again. Although sometimes it is painful in other

:53:17. > :53:22.ways. We are going live to Downing Street in a few minutes' time,

:53:22. > :53:26.because the prime minister will be holding a news conference. He is

:53:26. > :53:31.setting up, with a BBC producer standing whether Spanish prime

:53:31. > :53:36.minister will be standing. Now here's where the British prime

:53:36. > :53:40.minister will be standing. He has ideas above his station.

:53:40. > :53:46.Frequently, it is very newsworthy, like the time Gobby cornered sharia

:53:46. > :53:50.Blair at the height of speculation that her husband was standing down.

:53:50. > :53:56.Darling, that is a long way in the future. That quote made the front

:53:56. > :54:06.page of most national papers the next day, but can anyone do this?

:54:06. > :54:11.Why did it take you so long to settle? How was that? Very good.

:54:11. > :54:15.Well, that is Cabinet over for today. What is next, a press

:54:15. > :54:19.conference, a stakeout at a government department or home of an

:54:19. > :54:23.MP? Actually, it is a bacon sandwich.

:54:23. > :54:28.Well, you need sustenance for these jobs. Adam Fleming, you need to

:54:28. > :54:32.practice more with the shouting. We are joined now by the BBC's IPD

:54:32. > :54:38.political editor, James Landale. Gobby, as he is affectionately

:54:38. > :54:41.known, is something of a legend in the West Mr bubble, but he is also

:54:41. > :54:51.respected by the politicians? Yes, he is a legend because they have all

:54:51. > :54:55.

:54:55. > :54:58.had him on their doorstep at some point, and they know that all he

:54:58. > :55:00.will do is ask a question. He gets on with everybody. He has more brass

:55:00. > :55:03.than anybody in Westminster. He has a better new sense than many people

:55:03. > :55:05.in Westminster. If there is any flaw in this perfect human being, he is

:55:05. > :55:09.possibly got a pathological obsession with his mobile phone and

:55:09. > :55:15.injurious reluctance to work on some Fridays. But apart from that, he is

:55:15. > :55:20.amazing. Moving on to the issue of MPs' pay, which we talked about at

:55:20. > :55:23.the start of the programme, is there a sense that there is now a growing

:55:23. > :55:27.division between what party leaders are saying, and they are saying it

:55:27. > :55:34.is not the right time for a pay rise, and backbenchers, who are paid

:55:34. > :55:39.considerably less, and think it is long overdue? It is not a clear-cut

:55:39. > :55:43.division. Nick Clegg and Ed Miliband have said they will turn down this

:55:43. > :55:47.pay rise. David Cameron's spokesman has said he opposes it and thinks it

:55:47. > :55:51.is the wrong time for a pay rise, but will not specify whether Mr

:55:52. > :55:56.Cameron will hand this back. Education Secretary Michael Gove has

:55:56. > :56:00.been far more rude. In the last few minutes, he has said MPs should

:56:00. > :56:06.absolutely not receive these pay rises. MPs are well paid anyway.

:56:06. > :56:10.IPSA is a bit of a silly organisation, and that pay rise,

:56:10. > :56:13.they can stick it. Charming! It is not clear whether Mr Gove speaks on

:56:13. > :56:18.behalf of the government, but he certainly speaks for himself.

:56:18. > :56:22.are loads of MPs who think this is the wrong time and IPSA are putting

:56:22. > :56:27.them in an invidious position. will reduce public trust in them,

:56:27. > :56:31.and they have no control over it. But he quickly, privately a lot of

:56:31. > :56:38.them say there is clearly an issue about pay that has to be resolved.

:56:38. > :56:40.But publicly, we are scarring Westminster to find someone who will

:56:40. > :56:44.defend this, and we are not succeeding, for obvious reasons. The

:56:44. > :56:49.risk is that if you do get into a bit of a Dutch auction, as Margaret

:56:49. > :56:52.says, where does it stop? What about the package, that there are other

:56:53. > :57:02.things which will be reduced as part of this proposal to increase MPs'

:57:02. > :57:04.pay? There was some encouragement from government to see if IPSA could

:57:04. > :57:07.come up with a package that overall reduces the cost to the public

:57:07. > :57:10.purse. They have not managed that. They are over that by �3.5 million,

:57:10. > :57:14.which in the grand scheme of things might be a modest proportion of the

:57:14. > :57:20.whole, but it is still above the line, which makes it harder for the

:57:20. > :57:23.government to support this. There will be no immediate decision on

:57:23. > :57:29.this. So it will be interesting to see if the party leaders can find a

:57:29. > :57:35.way of finessing this further down the road. This is not a policy, it

:57:35. > :57:40.is a proposal. We have just had some other news from the Justice

:57:40. > :57:42.Secretary, Chris Grayling, who has asked the serious fraud office to

:57:42. > :57:46.consider investigating gene for us after the government was left with

:57:46. > :57:55.bills worth millions of pounds for electronic tags that were not used.

:57:55. > :58:01.Sounds like a scandal. Yes. It is something we look that not long

:58:01. > :58:05.ago. There is a general point here about how more private providers are

:58:05. > :58:11.providing public services, and the government has to be better with its

:58:11. > :58:16.openness. I want the National Audit Office to go and see how they spend

:58:16. > :58:21.taxpayers' money when they provide a public service. I am glad he has

:58:21. > :58:26.called in the serious fraud office. Very quickly with the quiz, the

:58:27. > :58:31.question was, what are Conservative MPs planning to do at next week's

:58:31. > :58:38.PMQs to protest against John Bercow 's do you know? IR may John Bercow

:58:38. > :58:48.fan. James, the answer is? They are going to start wearing badges with

:58:48. > :58:49.

:58:49. > :58:51.the letters BBB. The first letter refers to a ticking off that begins

:58:51. > :58:56.with B. Ticked off by John Bercow, but in slightly more fruity