31/10/2013

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:00:40. > :00:48.Afternoon, folks. And welcome to the Daily Politics. Turning up the

:00:49. > :00:53.heat on the energy companies, at least trying to. Ed Davey has been

:00:54. > :01:03.telling the Commons how he plans to increase competition in the energy

:01:04. > :01:07.market. Will -- will Labour derail High Speed 2? The Commons votes on

:01:08. > :01:11.the project and we will ask what the opposition are playing at. The

:01:12. > :01:17.Electoral Commission wants this man to reword his EU referendum

:01:18. > :01:21.question because they do not think the great British public knows

:01:22. > :01:28.whether we are in or not. Is Britain a member of the European

:01:29. > :01:40.Union? I think we are. And is there no end to his meddling? They now

:01:41. > :01:49.want to standardise this. FLUSHING. It is very upmarket this morning!

:01:50. > :01:54.With us for the duration, the -- pensions expert, Ros Altman. We

:01:55. > :01:59.will talk about the newspapers. Last night, the queenside and the

:02:00. > :02:05.Royal Charter to regulate the press. The Privy Council placed its seal

:02:06. > :02:09.of approval on the plans after newspapers lost a last ditch

:02:10. > :02:16.attempt to stop the process. It is under way. What do you make of it?

:02:17. > :02:22.A lot of the mainstream press will not join. They will try to stand

:02:23. > :02:27.against this. That will open them up to problems, but they are

:02:28. > :02:33.willing to accept that. I am rather sad. I think that the freedom of

:02:34. > :02:38.the press is one of the big pluses of the society and we have perhaps,

:02:39. > :02:42.over the top. You do not think the Government should have gone down

:02:43. > :02:49.this road? Per Smillie, not. The press, sometimes, is the most

:02:50. > :02:54.effective opposition -- personally. If they are stymied in standing up

:02:55. > :03:01.for the electorate, by politicians, effectively, maybe there is a

:03:02. > :03:07.slippery slope. We will see. This demand for regulation, with the

:03:08. > :03:13.Government role in it, came out of terrible things that were exposed

:03:14. > :03:16.by other parts of the press. Things happening at News International

:03:17. > :03:22.with hacking. The law is now taking its course on that, not regulation.

:03:23. > :03:30.We have systems in place to control wrong doing. And to slap these

:03:31. > :03:33.controls on the press, all risks slapping a potential political

:03:34. > :03:39.control on the press I think is the wrong way to go. We shall see what

:03:40. > :03:47.happens. Now it is time for the daily quiz. According to the papers,

:03:48. > :03:54.the European Union is proposing to standardise lavatory flushes. It is

:03:55. > :03:57.a sort of bog-standard! Did you see that? What will the recommended

:03:58. > :04:19.flush be? At the end of the show, Ros Altman

:04:20. > :04:27.will help to flush out the correct answer. Great script today. Who

:04:28. > :04:32.writes this? They will be fired when I am off the air! It is a big

:04:33. > :04:36.day for High Speed 2. MPs will vote on whether to let the Government to

:04:37. > :04:40.start spending money on preparations for the project. David

:04:41. > :04:44.Cameron and George Osborne hope they can drive it through. Labour

:04:45. > :04:51.have appeared to put the brakes on the project went Ed Balls said the

:04:52. > :04:58.costs have gone up to ?50 billion and there would be no blank cheque

:04:59. > :05:04.for HS2. The Transport Secretary said the new line will only happen

:05:05. > :05:12.with Labour support. David Cameron called Labour weak. What if

:05:13. > :05:16.anything can win round the Conservative backbenchers, who want

:05:17. > :05:21.to see it hit the buffers? When it was discussed in June this year, 21

:05:22. > :05:26.Tories actually voted against. It is not just a Labour problem for

:05:27. > :05:33.the Government. There were rumours 60 could rebel today. Is it all the

:05:34. > :05:43.board for HS2? Are we hitting the end of the line? James is the

:05:44. > :05:48.expert on Labour and HS2. I understand they will vote for this

:05:49. > :05:52.Bill this afternoon. The Labour party will vote for the Bill

:05:53. > :05:56.because it is not the whole thing. What it does today is simply say we

:05:57. > :06:04.will give the Government the authority to spend money, planning,

:06:05. > :06:08.compensation, preliminary work. And Labour are still retaining the

:06:09. > :06:13.right, further down the line, to say no. That is because the second

:06:14. > :06:18.phase of the legislation, the detail, the building, that will

:06:19. > :06:25.happen next year. I understand there is a split between Ed

:06:26. > :06:30.Miliband and Ed Balls. Ed Miliband is generally sympathetic and Ed

:06:31. > :06:36.Balls is more sceptical. That is reasonable. If you talk to Ed

:06:37. > :06:41.Miliband's people, they say he is a supporter and believes it is a good

:06:42. > :06:45.thing. Early in the year he said he thought the economic and social and

:06:46. > :06:51.business case had been made. If you talk to Ed Balls, he says yes, in

:06:52. > :06:56.theory we are in favour, but we have to make sure the money is

:06:57. > :07:02.spent well. He talks about stewardship of money. What I think

:07:03. > :07:07.is going on is that Labour use this as a way of displaying fiscal

:07:08. > :07:11.prudence. The topic when they can show the electorate that if they

:07:12. > :07:15.were elected, they could look after the purse strings and make a

:07:16. > :07:20.difference. Many people in the Labour Party think that is OK, but

:07:21. > :07:25.it is not a sustainable position because nobody is going to invest

:07:26. > :07:30.in the project if it has continuing doubt. For now, the Labour Party

:07:31. > :07:37.maintained that no blank cheque approach. The Government could

:07:38. > :07:43.continue doing what it needs to do until 2015 and then the Government,

:07:44. > :07:48.the Tory party, will say if you vote for us we will continue, it is

:07:49. > :07:53.too late to stop it by 2020, vote for us and we will finish the job.

:07:54. > :07:57.That would leave it open to people like us to say to Labour you need

:07:58. > :08:02.to say whether you are going with it or not. We would ask the

:08:03. > :08:07.question earlier, we would ask it next year, when the detailed Bill

:08:08. > :08:14.comes up. At that stage Labour will have to make a decision. Some in

:08:15. > :08:18.labour say maybe we could sidestep that and allow it to go through

:08:19. > :08:24.without voting for it, but most in Labour say they have to make a

:08:25. > :08:29.decision. Is it a lack of faith in big projects that make them put

:08:30. > :08:35.almost 15 billion of contingency into the budget? There is a mystery

:08:36. > :08:40.about it. They suddenly realised that some of it had not worked out

:08:41. > :08:51.and they need flexibility. A buffer. You always need a buffer for the

:08:52. > :08:59.railway. Flushing, enter the line, puns. James Lewis is a councillor

:09:00. > :09:03.for Leeds. He sits on the West Yorkshire Transport Authority

:09:04. > :09:08.committee. Welcome. You are a council -- your council leader

:09:09. > :09:12.wrote to the Shadow Transport Secretary this week to express

:09:13. > :09:18.concern over the Labour position. What is your view? What would you

:09:19. > :09:22.want the Labour Party to stand for? Our view is clear that for the

:09:23. > :09:26.future of the economy of the North of England we need investment in

:09:27. > :09:30.projects like High Speed 2 and we want to see better Connectivity to

:09:31. > :09:35.the rest of the country and extra capacity. At the moment the

:09:36. > :09:41.Government might not be handling it as well as they made, but it has to

:09:42. > :09:46.be delivered. If we had a high- speed link between London and Leeds

:09:47. > :09:52.Town, what makes you think it would not takes -- take more acid Leeds,

:09:53. > :09:59.rather than leading to greater prosperity for the City -- take

:10:00. > :10:04.more out of. London is a great global economic a city, and faster

:10:05. > :10:08.links must attract jobs to Leeds. We want better connections two

:10:09. > :10:12.international airports when the Government sorts out the airport

:10:13. > :10:17.policy and better connections to the Continent. That has to be good

:10:18. > :10:22.for our city, which is a modern European city and we need to be

:10:23. > :10:29.connected to the rest of the world. The coalition want to proceed. The

:10:30. > :10:36.fly in the ointment is Labour. You must be irritated by this position,

:10:37. > :10:42.of bringing doubt that a project -- to the project? We are clear that

:10:43. > :10:46.Labour is committed. We want to make sure that the long term

:10:47. > :10:52.commitment to deliver it is there and that it is a project that will

:10:53. > :10:56.last beyond the current government. The project was started in the last

:10:57. > :11:01.government and has continued under this government. The why is Ed

:11:02. > :11:07.Balls playing politics with it? He is rightly asking questions about

:11:08. > :11:12.the cost. We want to see... It is not just about the froth of the

:11:13. > :11:19.daily debate. The economic imperative is there to make longer

:11:20. > :11:27.term decisions about infrastructure. There is a big thumbs-up for HS2

:11:28. > :11:35.from you? Yes. We can go to Central lobby. We are joined by a Labour MP

:11:36. > :11:40.and Conservative MP. Welcome. What is Labour playing at? I have to

:11:41. > :11:44.make my position clear at the outset. The Labour Party has won

:11:45. > :11:51.position and I have voted consistently against it. -- one

:11:52. > :11:55.position. A are they now coming in your direction? I have tried to

:11:56. > :12:01.make the case to say we need a moratorium. What has been said is

:12:02. > :12:06.important. We have problems with Connectivity and capacity. This has

:12:07. > :12:10.gone the wrong way around. The project is being imposed on us

:12:11. > :12:15.without looking at whether it is the best use of money. The

:12:16. > :12:22.counsellor we just heard from, part of your party, and the head of

:12:23. > :12:27.Birmingham City Council, they do not want a moratorium. They are

:12:28. > :12:34.telling Westminster to get on with it. We are 30 years behind on high-

:12:35. > :12:39.speed, get it done. I would say get on with improving the

:12:40. > :12:43.infrastructure. But if we are spending ?50 billion, which is

:12:44. > :12:48.likely to rise to 75 billion, we need to sit down and make sure it

:12:49. > :12:55.is the best project and I am not convinced. As Ed Balls spoken about

:12:56. > :13:00.this to you? He has not. Should he? Why would he not speak to you? I do

:13:01. > :13:06.not think it is deliberate. I will make sure I find him today and have

:13:07. > :13:11.a word with him. Stewart Andrew, where are you won this? I am in

:13:12. > :13:15.favour. We are at the stage where we need to tackle long-term

:13:16. > :13:22.problems. The capacity issue is an issue now and will get worse by

:13:23. > :13:29.2020. Why do you need high-speed to deal with capacity? And having

:13:30. > :13:37.looked at the capacity figures, they are not convincing. I travel

:13:38. > :13:44.on the train a lot. What we used to call the InterCity routes. A lot of

:13:45. > :13:49.the time, they are not packed, even in peak time. Commuter trains are

:13:50. > :13:54.packed, not long distance. A you must use different trains. When I

:13:55. > :14:01.go back to my constituency, after 2:30pm, you struggle to find a seat.

:14:02. > :14:06.It is set to get worse. Passengers numbers have doubled and that is

:14:07. > :14:10.set to increase. The existing mainline routes cannot cope. We

:14:11. > :14:15.have spent billions of pounds upgrading the West Coast Main Line.

:14:16. > :14:20.Now we are at capacity again. The only way to solve it is to have a

:14:21. > :14:25.new line and if we do that, let's use the best technology. Let's be

:14:26. > :14:31.proud of it. It is now 30 years out of date. What do you say to the

:14:32. > :14:36.capacity argument? Billions of pounds already spent has been on

:14:37. > :14:42.consultancy fees. That needs addressing. What we are talking

:14:43. > :14:46.about is the economic competence. That is where Ed Balls and Labour

:14:47. > :14:53.have been strong, saying they are not prepared to write a blank

:14:54. > :15:00.cheque. Nobody is asking for that. I think they are asking for a blank

:15:01. > :15:05.cheque. What I'd like to see his evidence of every single other

:15:06. > :15:17.option that has been explored and why HS2 is the best option.

:15:18. > :15:23.Quite a few Conservatives are on the other side of the argument. How many

:15:24. > :15:28.would you regard as rebels? The are not rebels, they are legitimate.

:15:29. > :15:35.Forget the word, how many do not agree? We will see. I do not know. I

:15:36. > :15:39.think we will have the vast majority of conservatives. 21 voted against

:15:40. > :15:47.it last time. Possibly the same again full of the fact is that we

:15:48. > :15:55.have to continue to make the case. The argument before was about speed

:15:56. > :15:58.and that is not the issue. It was very good of the transport

:15:59. > :16:02.Department to work out that people like us can actually work on trains,

:16:03. > :16:09.that was a revelation. It shows they do not get out very often. I label

:16:10. > :16:18.MPs -- Labour MPs moving in your direction? There were 27 people of

:16:19. > :16:22.all sides of the house last time we voted against this, that is not a

:16:23. > :16:39.great number. I am hoping it will be more today. Thank you. You will be

:16:40. > :16:44.our default theme. Are you for or against? I am for. We need to renew

:16:45. > :16:51.our infrastructure. When you look around the rest of Europe, we are so

:16:52. > :16:57.far behind. HS2 is only one bit. We need more than that. Are we not

:16:58. > :17:02.looking at a late 20th-century technology that we have missed the

:17:03. > :17:10.boat on, trying to catch it up and the world has moved on? We will have

:17:11. > :17:15.holograms on the table, and by 2030, the world will probably be full of

:17:16. > :17:20.driverless cars. There will be other things we need to do as well. I

:17:21. > :17:25.think we have a project ready to go, we have seen these things take so

:17:26. > :17:32.long. If we wait there will be another lot of technology. Today

:17:33. > :17:36.will be out of date. Thank you. Just before we came near, Ed Davey made

:17:37. > :17:43.his annual energy statement. I know you have been waiting for it. --

:17:44. > :17:49.came on here. He announced new plans to make it easier for consumers to

:17:50. > :17:54.switch energy plans. He also suggested the issue of market

:17:55. > :17:57.competition. In our debates on energy bills, many have been asking

:17:58. > :18:03.questions about whether competition is working in the energy market full

:18:04. > :18:11.of well this coalition has already done a lot to promote competition,

:18:12. > :18:14.and we are ready to do more. We propose to introduce annual reviews

:18:15. > :18:20.of the state of competition in the energy market. The first of these

:18:21. > :18:27.assessments will be delivered by spring next year. The assessment

:18:28. > :18:33.will be undertaken by Ofgem, working closely with the Office of Fair

:18:34. > :18:36.Trading. The exact metrics for the review will be a matter for the

:18:37. > :18:41.regulator but I will be asking them to in-depth across the sector at

:18:42. > :18:48.profits and prices, barriers to entry and consumer engagement. This

:18:49. > :18:54.government has equipped the regulator with strong powers. It

:18:55. > :19:00.uses a phone, they must be addressed. We need to make sure

:19:01. > :19:07.energy supplies are open and honest. -- if abuse is found. I have asked

:19:08. > :19:16.Ofgem to deliver by spring next year to report. -- a full report. They

:19:17. > :19:24.will build on the work completed by BDO. Ofgem will be publishing the

:19:25. > :19:28.consultation this afternoon. The public need to know that our reforms

:19:29. > :19:35.will have teeth, that companies that play outside the rules will be

:19:36. > :19:42.penalised and punished. Ofgem have the powers to require compensation

:19:43. > :19:47.payments to be made directly to consumers who have lost out. I want

:19:48. > :19:53.to go further. I intend to consult on the introduction of criminal

:19:54. > :19:56.sanctions for anyone found manipulating energy markets and

:19:57. > :20:02.harming the consumer interest. I am joined by Angela Knight, chief

:20:03. > :20:07.executive of Energy UK. Why does it take so long to switch energy

:20:08. > :20:11.suppliers? Predominantly because there is a two-week cooling off

:20:12. > :20:19.period, set out as a statutory requirement. Then there is a debt

:20:20. > :20:24.piece, where individuals have the opportunity to sort it out if they

:20:25. > :20:29.have any. Then the balancing mechanisms, which are not owned by

:20:30. > :20:32.the industry. That is why it comes down to five weeks. We have done

:20:33. > :20:36.quite a lot of work on this already and we reckon some of those changes

:20:37. > :20:42.can undoubtedly take place at the same time. The big question is

:20:43. > :20:46.whether that consumer protection piece is removed or left. We need to

:20:47. > :20:50.have a discussion about that. That is up to the customers. We do not

:20:51. > :20:55.know at the moment what the balancing mechanism is. You would

:20:56. > :21:00.like to see it happen a lot more quickly? We think it is possible to

:21:01. > :21:04.do that. We have done some of the work in the weeds of this. It is

:21:05. > :21:10.more, betrayed underneath than one thinks. This is one of those areas.

:21:11. > :21:15.Lots of parties are involved, not just the energy companies. Why don't

:21:16. > :21:21.you just get together and do it? That is exactly what we are doing.

:21:22. > :21:24.We kept the department involved. I believe the Secretary of State, when

:21:25. > :21:29.he made his England, referenced the work we do it. Why not implemented

:21:30. > :21:33.now? People are desperate to change suppliers. The bills are going up

:21:34. > :21:42.and the winter is upon us. I tried to change my supplier and it is a

:21:43. > :21:47.nightmare. I have a reasonable education, a degree in economic, and

:21:48. > :21:51.a name that some people recognise and it was still a nightmare. What

:21:52. > :22:00.chance would my grandmother have had? 3 million households are

:22:01. > :22:07.changing every year, more doing it on tariffs with one company. They

:22:08. > :22:13.are changing on average so it cannot be that much of a nightmare. Why

:22:14. > :22:17.shouldn't it take more than two weeks? I'm not sure that it

:22:18. > :22:22.necessarily does. You have the two-week cooling off period and then

:22:23. > :22:32.you have the organisations that have to be notified. Right now, I don't

:22:33. > :22:37.know how their systems are to do that. I do know that we can shorten

:22:38. > :22:43.things but I'm not going to make promises for third parties with

:22:44. > :22:48.which we do not understand their mechanisms. I can make a promise

:22:49. > :22:53.that switching quickly can be done and there is a lot of work underway

:22:54. > :22:58.and we can bring forward some of those changes pretty quickly. Why

:22:59. > :23:04.won't you energy companies, that you represent, tell us the wholesale

:23:05. > :23:11.cost of the electricity they generate? A lot of that is already.

:23:12. > :23:18.There is a wholesale market report prices regularly. That is the

:23:19. > :23:26.wholesale market. Why do we not know the energy generation costs of the

:23:27. > :23:31.big six? I'm surprised you say that because they report them in a

:23:32. > :23:34.segregated way, provided to Ofgem, the regulator, which has been

:23:35. > :23:39.subject to not only to the scrutiny of the regulator but also by third

:23:40. > :23:45.parties. Are you saying it is possible for us to see the

:23:46. > :23:53.generating cost, let's take one of the big six, to see how much it cost

:23:54. > :23:58.to generate the electricity and then the retail mark-up that same company

:23:59. > :24:04.put on its own electricity? Can you do that? Have a look at the

:24:05. > :24:10.accounts. You are the expert. Can you do that? The accounts are there,

:24:11. > :24:15.they are public. A separate out generation, retail, you can work

:24:16. > :24:20.your way through. -- they will separate. You can see what the sales

:24:21. > :24:31.margins are. I think it is all there. You represent them. What is

:24:32. > :24:37.the wholesale generating cost of Centrica? I'll have to go and look.

:24:38. > :24:44.For us to be able to judge if the retail price is fear, we need to

:24:45. > :24:47.know the mark-up. I will let you know when I at them and I will let

:24:48. > :24:53.you know that. We're not talking about secret. We are providing

:24:54. > :24:59.information transparently. The question is whether there is more

:25:00. > :25:09.that is required. That is fine. There is no black hole here. There

:25:10. > :25:13.is no opiate thing. -- opaque. You require more, that is fine, more can

:25:14. > :25:16.be required. Do not forget that generation is done by many

:25:17. > :25:25.companies, lots of independent generators. I was just asking for

:25:26. > :25:29.one. Energy and gas is boss unsold. Now you are telling me things that I

:25:30. > :25:34.know, what I was trying to do was get you to tell me something I don't

:25:35. > :25:41.know, but you are not able to do that. I cannot. I have not gone and

:25:42. > :25:48.Luke. Thank you. Thank you. You can go... We are joined by the editor of

:25:49. > :25:54.Which Magazine. I am sad to say, Angela Knight will not debate with

:25:55. > :26:01.you. Why is that? She is very good at debating the indefensible. Why

:26:02. > :26:05.will she not debate with you? Have you upset her? We had a debate in

:26:06. > :26:09.front of the energy industry about whether the suppliers could win back

:26:10. > :26:16.the trust and the audience voted against Angela. It cannot be that!

:26:17. > :26:26.You must have annoyed her. Let me ask you this, can we discern the

:26:27. > :26:32.wholesale price of each individual electricity generator? We cannot.

:26:33. > :26:38.Angela was wrong. We spent a year looking at this. Can you discover

:26:39. > :26:44.the wholesale price of gas and electricity? The answer is you

:26:45. > :26:50.cannot. Unless you are an industry insider, you cannot. I will tell you

:26:51. > :26:55.why, the large companies sell themselves gas and electricity at

:26:56. > :27:01.huge volumes, under the counter, they call it over the counter. You

:27:02. > :27:04.cannot discover what price British Gas are buying their gas and

:27:05. > :27:11.electricity from Centrica in two years time. Which is the same

:27:12. > :27:15.company. The same company. When they discuss profit margins they only

:27:16. > :27:20.talk about the retail business, they do not talk about the group. If you

:27:21. > :27:24.look at the groups, the profit margins are two or three times

:27:25. > :27:27.greater than the likes of Angela Knight will ever admit. There is

:27:28. > :27:33.something murky going on and it is right to get that out in the open.

:27:34. > :27:43.Let me unravel this, are you saying I could not go to Ofgem or the

:27:44. > :27:48.company itself? Let us take Centrica. I could not work out how

:27:49. > :27:57.much it has cost them to generate the electricity from their gas and

:27:58. > :28:03.then work out how much of a mark-up they have put on to reach the retail

:28:04. > :28:06.price? You could not at the moment. What you can discover

:28:07. > :28:13.retrospectively is some of that data when they publish it through the

:28:14. > :28:17.price collection departments. That is retrospective. You cannot

:28:18. > :28:28.discover know what the competitive wholesale price of gas relativity

:28:29. > :28:31.is. -- gas or electricity. There is probably more cost being passed on

:28:32. > :28:36.to the consumer because a lack of price comparison exists. That is why

:28:37. > :28:41.we want to see a separation of these big six companies. You want to break

:28:42. > :28:46.them up? We want them to have a separate license treated separately

:28:47. > :28:51.so there is a proper transparent market for wholesale, for gas and

:28:52. > :28:54.elegant as a tea. Let me ask you another question. -- gas and elegant

:28:55. > :29:09.city. When we see rates of return for

:29:10. > :29:16.energy companies, are you saying that is just their low margin retail

:29:17. > :29:18.business and not the high margin generation business? I am saying

:29:19. > :29:25.exactly that. If you would the margins, their profit margins for

:29:26. > :29:31.the group with generation and wholesale is upwards of 18%. If we

:29:32. > :29:35.want to have an honest debate about whether these very large companies

:29:36. > :29:39.are making excessive profits, we need to look at the whole group, not

:29:40. > :29:44.just the bit of it that Angela and her friends want to speak about. How

:29:45. > :29:52.quickly should we be able to switch? What was your reaction is to mark it

:29:53. > :29:58.is amazing. It takes people eight weeks or more. It takes long time is

:29:59. > :30:04.to navigate. It should be possible in a day. Ed Davey provided the

:30:05. > :30:08.amazing spectacle of a Secretary of State announcing that there will be

:30:09. > :30:13.quicker switching at some point in the future, let's see if that

:30:14. > :30:17.happens, and here's asking the regulators to do their job, look at

:30:18. > :30:23.the market and see if it is working competitively. I thought that was

:30:24. > :30:28.their job. It is! It is so little and so late. Have you ever tried? It

:30:29. > :30:37.is a nightmare. You are absolutely right. Older people are particularly

:30:38. > :30:41.vulnerable. They cannot always navigate the system. It takes a long

:30:42. > :30:46.time. We have a system that is not working well for the consumer. The

:30:47. > :30:53.energy prices have gone up a lot more than other countries. Not

:30:54. > :30:57.places like Germany or Denmark. But they have even more stringent green

:30:58. > :31:08.taxes. We have to get control of this.

:31:09. > :31:17.I am going to make it my mission to bring you and Angela Knight

:31:18. > :31:23.together. Please do. Now, to the Old Bailey. Our correspondent has

:31:24. > :31:26.been following the morning in the trial of Rebekah Brooks and Andy

:31:27. > :31:31.Coulson, the Prime Minister's former head of communications. We

:31:32. > :31:38.have been busy with other things, so tell us what has happened in

:31:39. > :31:42.court. The court heard for three hours from the prosecutor. The

:31:43. > :31:46.second day for him in terms of the opening statement. It is the work

:31:47. > :31:51.of the convicted phone hacker Glenn Mulcaire has dominated what has

:31:52. > :31:56.been heard. He worked at the paper for a six-year period, the News Of

:31:57. > :32:03.The World. Rebekah Brooks and Andy Coulson were in charge at that time.

:32:04. > :32:08.They heard how he worked, getting pin numbers and mobile phone

:32:09. > :32:14.numbers. And then bid documents handed to the police in 2011 that

:32:15. > :32:18.kicked off the investigation -- and then the documents. One day, Glenn

:32:19. > :32:23.Mulcaire wrote to a senior member of staff at the News Of The World

:32:24. > :32:34.and he referred to Tessa jowl and her husband. He gave her phone

:32:35. > :32:39.number and -- -- Jowell. He said it looked like she was selling up.

:32:40. > :32:43.There was then an e-mail talking about you have to decide whether I

:32:44. > :32:49.have been hacking have. In another e-mail, Glenn Mulcaire said there

:32:50. > :32:54.are 45 messages. The prosecution said he would have only got the

:32:55. > :32:58.details if he had hacked her telephone. And then he looked at

:32:59. > :33:03.the jury and said after that this information came to light, what is

:33:04. > :33:09.the editor's question, how do I know it is true, before he decides

:33:10. > :33:14.to publish the story? He said that Andy Coulson, the former adviser to

:33:15. > :33:20.David Cameron, who was editor at the time. We have a lot of

:33:21. > :33:25.reporting restrictions. If you cannot answer, do not think badly

:33:26. > :33:30.of it. Yesterday, we learned there were senior news editors from the

:33:31. > :33:34.News Of The World to have pleaded guilty. That became public

:33:35. > :33:39.knowledge yesterday. Will these news editors, who have gone for the

:33:40. > :33:46.guilty plea, will they give evidence for the prosecution in

:33:47. > :33:50.this trial? We do not know is the short answer. We learned yesterday

:33:51. > :34:00.that four people have pleaded guilty. Glenn Mulcaire, he pleaded

:34:01. > :34:04.-- he pleaded guilty to further charges. Neville Thurlbeck, James

:34:05. > :34:09.Weatherup and Greg Miskiw. Ian Edmondson, the 4th news editor

:34:10. > :34:14.working at the News Of The World at the time, he is at trial here and

:34:15. > :34:18.he denies the charges. As to who will give evidence, and we could be

:34:19. > :34:25.here for a long time, we do not know.

:34:26. > :34:33.You are watching Daily Politics. We have been joined by viewers in

:34:34. > :34:42.Scotland. They have been watching first minister's questions live.

:34:43. > :34:44.Welcome. It'S as bad for you as smoking 15 cigarettes a day, it

:34:45. > :34:47.increases the risk of illnesses like dementia and heart problems

:34:48. > :34:50.and it mainly targets older people. It's not a medical disease, it is

:34:51. > :34:56.loneliness. In England alone, almost a million are classed as

:34:57. > :35:02.chronically lonely. There will be more in Scotland, Wales and

:35:03. > :35:04.Northern Ireland. Jeremy Hunt, the Health Secretary, recently said

:35:05. > :35:07.loneliness and our response to it shamed the nation. But is what the

:35:08. > :35:11.government doing about it actually enough? Or is it an issue where we,

:35:12. > :35:13.the public, should look to ourselves rather than blame the

:35:14. > :35:25.politicians? David Thomson has been reporting. # And it could be me...

:35:26. > :35:29.Henderson court in north London where Age UK run a day centre and

:35:30. > :35:34.people who use it talk honestly about getting older and being on

:35:35. > :35:42.your own. I do feel lonely sometimes. They do not help, the

:35:43. > :35:54.young folks. If you have no family, it is hard to talk to people about

:35:55. > :36:01.your life. Cold beds, lonely beds. Loneliness. And we respect older

:36:02. > :36:07.people and think they deserve the best. Politicians are no different.

:36:08. > :36:12.But how come that for so many, old age can be in isolation and

:36:13. > :36:17.loneliness. Each and every lonely person to have someone who could

:36:18. > :36:22.visit them. The forgotten 1 million living among us, ignored to our

:36:23. > :36:27.national shame. Politician has are taking it on board. This was Jeremy

:36:28. > :36:31.Hunt last week. Even his ministerial colleagues wonder if

:36:32. > :36:37.the approach is right. I thought his analysis was spot on. His move

:36:38. > :36:40.to the blame game, saying families let their grandparents and their

:36:41. > :36:45.parents down by not providing support, it missed the fact there

:36:46. > :36:50.are 6 million carers and I know from messages I have read since

:36:51. > :36:53.that speech, they are in despair and outraged by a speech that

:36:54. > :37:00.implies in some way they do not do enough. But there is also a cost to

:37:01. > :37:04.being a compassionate society that the politicians and public aspire

:37:05. > :37:10.to be. They is a lot we can do as individuals, but there is a lot

:37:11. > :37:13.politicians can do. They need to join up between talking about

:37:14. > :37:18.loneliness and making hard choices about where they put their money.

:37:19. > :37:22.They need to invest in low-level, local facilities, such as day

:37:23. > :37:27.centres. They make a huge difference. Perhaps a part of the

:37:28. > :37:34.problem is not how we treat older people, but how we think of them.

:37:35. > :37:39.We need to challenge negative stereotypes about older people and

:37:40. > :37:44.ageing, that portrayed older people as a burden, ticking time bombs

:37:45. > :37:48.exploding under the NHS. Older people contribute to the economy

:37:49. > :37:53.more than they cost the economy. They are valuable, their wisdom and

:37:54. > :37:58.talents should be better used. That is one way we can tackle social

:37:59. > :38:04.isolation. That is why I think we need a commissioner to trace -- to

:38:05. > :38:08.chase government and make sure it does what is necessary to look

:38:09. > :38:14.after the interests of older people. Dignity, security and companionship.

:38:15. > :38:21.To make them happen takes deeds and not words from everyone.

:38:22. > :38:28.You follow these things carefully. This is a serious problem. It is.

:38:29. > :38:36.But it is also important to stress that the real problems occur much

:38:37. > :38:40.older than the typical old person would be perceived to be. In this

:38:41. > :38:46.country we have a stereotype that when you hit 60, even 70, you are

:38:47. > :38:51.somehow decrepit, you cannot contribute. People in the film are

:38:52. > :38:59.advanced in years, Eighties and Nineties, but it is important to

:39:00. > :39:05.stress that loneliness does affect older people, the older they are,

:39:06. > :39:10.but at the later stages. Families are more dispersed. Fur the to

:39:11. > :39:16.travel to see them. Sometimes you cannot go to see them -- further.

:39:17. > :39:20.What should the response be? There is a default position there is a

:39:21. > :39:24.problem and what will the Government do? The Health Secretary,

:39:25. > :39:28.we tried to get him on today, but he would not, but he has been

:39:29. > :39:32.criticised for identifying the problem and not doing anything

:39:33. > :39:37.about it. The solution might be in our hands. We have heard the fine

:39:38. > :39:43.words. One problem we have that need sorting out is the social care

:39:44. > :39:48.system is dysfunctional. If we spend a little bit of money on

:39:49. > :39:52.helping lonely older people, as you said at the beginning, their health

:39:53. > :39:56.would be better and it would save money for the NHS. When it comes to

:39:57. > :40:02.health, the NHS is a nationwide system, with social care it is

:40:03. > :40:06.parcelled up to local councils. The idea of a commissioner for older

:40:07. > :40:12.people is good. Wales has one. England does not. Are the older

:40:13. > :40:16.people in Wales are any less slowly than the people in England? Of

:40:17. > :40:19.course not. Appointing the commissioner is sometimes a

:40:20. > :40:25.political way of being seen to do something. But they have no

:40:26. > :40:31.representation. What about charities and individuals getting

:40:32. > :40:34.together and having 15 minute visits, identifying a number of

:40:35. > :40:43.older people and saying one will visit this person every couple of

:40:44. > :40:48.days? There is not one magic silver bullet. The charities already do

:40:49. > :40:54.marvellous work. It needs to be centralised, I think, and organised.

:40:55. > :40:59.If you had a centralised and organised system which said we have

:41:00. > :41:03.an issue with millions of people who are well advanced in years on

:41:04. > :41:07.their own, the older you are there fewer friends you have because they

:41:08. > :41:12.might have died. Let's recognise that. Harness the ability is an

:41:13. > :41:16.strengths of people in their sixties and seventies and when you

:41:17. > :41:22.get much older, we need to look after people in a different way

:41:23. > :41:27.from how we do now. I am glad we have brought some attention to it.

:41:28. > :41:31.Earlier this month, the Prince of Wales addressed the National

:41:32. > :41:36.Association of Pension Funds. He gets about. He urged the industry

:41:37. > :41:40.to ensure that portfolios are resilient in the long term, or risk

:41:41. > :41:47.condemning future generations to, quote, an exceptionally miserable

:41:48. > :41:52.future. I would argue that as the largest class of institutional

:41:53. > :41:58.investor, and as a sector defined by your long-term liabilities, you

:41:59. > :42:03.have a need, and arguably a duty, to ensure these emerging

:42:04. > :42:11.environmental and social and economic risks are identified and

:42:12. > :42:14.managed. With an ageing population, and pension fund liabilities that

:42:15. > :42:19.are there for stretching out for decades, surely the current focus

:42:20. > :42:25.on quarterly capitalism is increasingly unfit for purpose?

:42:26. > :42:31.There is also mounting evidence from the likes of Harford and

:42:32. > :42:35.London Business Schools, that those companies that improve the way they

:42:36. > :42:41.tackle environmental and social challenges proved to be the ones

:42:42. > :42:47.better able to deliver the long term returns. You can have your

:42:48. > :42:55.cake and eat it. Prince Charles. I wonder who he has his pension with.

:42:56. > :43:04.That would be a -- that would be us! The a joined by their minister.

:43:05. > :43:11.It is a fundamental question. -- we are joined. Can you argue pensions

:43:12. > :43:15.are a good investment? Absolutely. We are about to put 10 million

:43:16. > :43:19.people into a workplace pension and for every ?1 they put in, their

:43:20. > :43:26.farm and the taxpayer puts in another ?1. What other investments

:43:27. > :43:32.can you turn ?1 into ?2 overnight? Many would take two paths and turn

:43:33. > :43:39.it back into one band. We have talked about a limit on charges. --

:43:40. > :43:45.?1. 99p of the ?1 in the pension turns into a pension, which would

:43:46. > :43:51.be an advance. ?30 billion of pension savings, languishing in

:43:52. > :43:57.poorly performing funds. That is hard earned cash. That is why we

:43:58. > :44:02.are taking action. For too long, money has been left in old funds,

:44:03. > :44:07.when higher charges were the norm. One thing we do with automatic

:44:08. > :44:12.enrolment, if we set standards, the firms will not be able to use the

:44:13. > :44:19.old schemes. We will not allow that. Should you have sorted out pension

:44:20. > :44:25.fees before automatic enrolment? So that people... Employers being

:44:26. > :44:30.forced to put in matching contributions are not going to be

:44:31. > :44:33.ripped off? Were have been doing this for a year and it has been the

:44:34. > :44:37.big employers such as the big supermarkets, who have the buying

:44:38. > :44:41.power to negotiate good deals with the pensions industry. We are

:44:42. > :44:46.acting now because when you get to smaller firms, they might not have

:44:47. > :44:53.the buying power and interest. So far, people have got good deals. We

:44:54. > :44:58.have to make sure it goes on. If you saved up and you bought a small

:44:59. > :45:03.second home, a flat, in a reasonably prosperous part of the

:45:04. > :45:08.country, when you retire, you would get a better return than these

:45:09. > :45:11.pensions? It might be fantastic and it might be terrible. I do not want

:45:12. > :45:25.my retirement to be that uncertain. There are so many problems with

:45:26. > :45:31.pension. They have had a very bad press. Deservedly. There has been

:45:32. > :45:37.lots of scandals. It is correct to control the charges. One of the big

:45:38. > :45:40.issues we are not looking at yet is once you have built up a pension

:45:41. > :45:49.fund you have to take an income out of it. At that point, when you buy

:45:50. > :45:57.an annuity. When you buy that, there are no controls on the charges. You

:45:58. > :46:01.could lose a lot if you die quickly. That has to change. We need to make

:46:02. > :46:09.sure that we get good value when building up the fund, but also when

:46:10. > :46:14.you take it down. Annuity rates have been terrible for some time. That is

:46:15. > :46:19.partly a real thing, partly because we are living longer, and I entirely

:46:20. > :46:25.agree that as well as addressing getting people into savings, dealing

:46:26. > :46:30.with cost, we need to deal with how to turn that into a pension. The

:46:31. > :46:36.Financial Conduct Authority, newly created this year, is doing a lot of

:46:37. > :46:41.work, I am working with the Treasury to make sure that is the big thing

:46:42. > :46:45.we work on. What should he do to ensure we get a better pension

:46:46. > :46:50.system? We need more flexibility in the system. At the moment, when you

:46:51. > :46:55.put your money into a pension, if you need that back you cannot get

:46:56. > :46:58.it. When you put it into an annuity, if you have done the wrong thing you

:46:59. > :47:03.can never change it. We have the most inflexible system, and I know

:47:04. > :47:07.that Steve understands this. He is doing some great work in trying to

:47:08. > :47:14.improve the pension system. I applaud him for that. It is a

:47:15. > :47:22.difficult job. A lot of younger people look at what has happened to

:47:23. > :47:28.the pensions of their parents. They think, really? Maybe I will do

:47:29. > :47:35.something else. Older people always say they wish they started sooner.

:47:36. > :47:44.But the young are more likely to stay in than the old. Vacancy

:47:45. > :47:49.rewards down the road? We are going in gradually. They barely notice.

:47:50. > :48:02.That gives us a real chance to turn this around. We need to encourage

:48:03. > :48:09.people to do more than the minimum. You can have an Isa, then you lose

:48:10. > :48:15.the contribution. That might be OK for some younger ones. If you have

:48:16. > :48:22.these schemes, any time you get a pay rise, encourage people to put a

:48:23. > :48:30.bit of money away for the future. Not necessarily locked up but at

:48:31. > :48:36.least long-term saving. It is easier for them. That would help with

:48:37. > :48:44.longer savings. But you will do something about these fees?

:48:45. > :48:53.Absolutely. We will legislate by Easter. We better leave it there. Do

:48:54. > :48:59.you know where you live? Are you sure? The electoral commission does

:49:00. > :49:03.not have a lot of confidence in our abilities. They have just given

:49:04. > :49:10.their advice on the European Union referendum. There are concerns

:49:11. > :49:15.linked to research that show that some of us do not already know that

:49:16. > :49:19.we are in the European Union. Obviously everyone who watches the

:49:20. > :49:24.Daily Politics knows that. In a moment we will discuss this with the

:49:25. > :49:31.electoral commission. We have been putting the great British public to

:49:32. > :49:41.the test. Do you know if Britain is a member of the EU? I do not. You

:49:42. > :49:49.don't know? Of course. So you do now? Yes. Is Britain a member of the

:49:50. > :50:00.European Union or not? I don't think so. We are. Where are you from?

:50:01. > :50:06.France. Of course it is. Some research shows some people do not

:50:07. > :50:12.know if we are. That is a bit sad. Is Britain a member of the European

:50:13. > :50:22.Union? Yes. You think it seems like quite an obvious question? Yes. I

:50:23. > :50:31.think we are. Some people don't know. They are all thick if they

:50:32. > :50:35.don't know. I think that Liverpudlian accent got straight to

:50:36. > :50:44.the point. We are joined by James Wharton. And Jenny, who thinks the

:50:45. > :50:50.EU Referendum Bill is badly worded. What do you make of these vox pop?

:50:51. > :50:55.That is very entertaining, but our research is rather more rigorous

:50:56. > :51:01.than that. What we did find was the people who did not know we were in

:51:02. > :51:09.the EU. How many? It is not that kind of research. It is a

:51:10. > :51:15.one-to-one, with the ballot paper. We then do in-depth interviews. We

:51:16. > :51:22.did find there were people who did not know we were in the the EU. What

:51:23. > :51:26.percentage? We also found there were people who thought we were and when

:51:27. > :51:32.they looked at the bill, they were confused. I understand that full is

:51:33. > :51:39.not -- I understand that. Can you not tell us which percentage of your

:51:40. > :51:47.sample. Were not in the EU? It is not that type of sample. It has been

:51:48. > :51:54.well tested. What is wrong with his question? The question is, do you

:51:55. > :51:58.think the United Kingdom should be a member of the European Union? The

:51:59. > :52:04.original question, two things are problematic. Did you think it was

:52:05. > :52:09.like an opinion poll and nothing would happen? And people did not

:52:10. > :52:14.have enough knowledge. It needs to give them information that we are in

:52:15. > :52:18.the the EU now. You need to introduce the word leave or the

:52:19. > :52:26.words remain. Let's have a look on the screen. That is your question. I

:52:27. > :52:32.suppose that could be interpreted as whether we should stay in or should

:52:33. > :52:41.we join? You might not think we are in already. The electoral commission

:52:42. > :52:47.questioned changes the verb. That is less equivocal, isn't it? The danger

:52:48. > :52:55.with that, we had remain in the original question and we took it out

:52:56. > :52:59.because we consulted amongst MPs. If you put remain end, it leads people

:53:00. > :53:10.to vote for the status quo and its the result. -- it will affect the

:53:11. > :53:15.result. What is the answer? If you are going to use I guess Renaud

:53:16. > :53:21.question you need to use leave or the remain. This was overwhelmingly

:53:22. > :53:26.the best. It leaves a low level of perception of bias and for that

:53:27. > :53:29.reason we have also asked parliament to consider, we have given them an

:53:30. > :53:37.alternative approach, moving away from this question and asking

:53:38. > :53:45.whether the EU should remain in or leave. What about that? They have

:53:46. > :53:50.not fully tested that question, and so in next week's debate we could

:53:51. > :53:58.adopt that, put it in, and then find out that does not work either.

:53:59. > :54:01.Avenue fully tested it? We have. We have not seen if we could simplify

:54:02. > :54:07.it further and we have not heard from campaigners. I would not

:54:08. > :54:12.imagine that running a campaign to leave remain would be difficult but

:54:13. > :54:20.we have not given that option. Are you minded to stay with this

:54:21. > :54:27.question, even though we have had the commission, seen the vox pops,

:54:28. > :54:33.some people don't even know we are members? I am but it is up to

:54:34. > :54:37.Parliament. I recognise the work the electoral commission have done but

:54:38. > :54:41.the key finding is it is thus -- is it does not lead people down one

:54:42. > :54:47.route or the other. Any aspect of this, that would come at the end of

:54:48. > :54:51.a referendum campaign process when people would be better informed by

:54:52. > :54:56.the public debate. We have run out of time but I think the dialogue

:54:57. > :55:05.will continue full is not -- will continue. The quiz was, European

:55:06. > :55:19.commissioners are standardising across the continent. What will the

:55:20. > :55:22.recommendation be? Six litres? Five litres? One beater or have a bucket

:55:23. > :55:31.of sawdust? Is it five litres? How did you know? I had a guess.

:55:32. > :55:46.Amazing. Is this Big Brother intrusion? Joining us is Peter Bone

:55:47. > :55:49.and Natalie Bennett. I assume that you are a big supporter of this

:55:50. > :55:57.standardisation so that wherever we are, we know how much water we are

:55:58. > :56:03.using. I know the BBC have cut but why have you put me in the toilet?

:56:04. > :56:14.It is absurd that the EU should be wasting time and money. They have

:56:15. > :56:17.been investigating since 2011. They have been testing out different

:56:18. > :56:26.systems. It is the most absurd waste of money. Is this absurd or

:56:27. > :56:30.sensible? We are having typical tabloid reporting. We have a

:56:31. > :56:39.voluntary label manufacturers can choose to use so people know we are

:56:40. > :56:43.getting the best possible quality. This is another example of curly

:56:44. > :56:51.cucumbers and then the bananas. This is a voluntary standard. Just like

:56:52. > :56:57.we have fair trade, Carbon trust. I promise everybody the EU is not

:56:58. > :57:11.going to come marching in. They would like to. It is in -- it is a

:57:12. > :57:19.guideline and it is voluntary. If you go into McDonald's Uriah Knowles

:57:20. > :57:27.there is no water being used at all. -- urinals. That is why the cost is

:57:28. > :57:33.going up. It is a waste of money and another reason why we should come

:57:34. > :57:40.out of stock -- out of the European Union. This is a serious issue. We

:57:41. > :57:48.need to cut down the amount of good value drinking water we are putting

:57:49. > :57:53.in when we renovate pilots, and this is simply saying it is a good

:57:54. > :58:04.guideline. 30% of the water that the British use goes down the toilet. In

:58:05. > :58:12.Finland, it is 14%. Peter Bone, the research only cost ?76,000. That is

:58:13. > :58:18.just like an MP's expenses. That is too low. It is just another example

:58:19. > :58:25.of the complete waste of money in the European Union. People are

:58:26. > :58:30.saying this is unnecessary. The alternative would be every member

:58:31. > :58:36.state do the research and come up with its own standard. We are going

:58:37. > :58:44.to have to leave you there. Enjoy yourself there. Thank you. The one

:58:45. > :58:49.o'clock News is starting on BBC One. I will be back tonight with Michael

:58:50. > :58:52.Portillo, Diane Abbott, Stanley Johnson, Miranda Green, Emily

:58:53. > :59:02.Maitlis and Malcolm Gladwell. Goodbye.