28/10/2016

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:00:36. > :00:39.Hello and welcome to the Daily Politics.

:00:40. > :00:42.The Government says it hasn't promised extra cash to Nissan,

:00:43. > :00:44.after the car maker announced it would boost

:00:45. > :00:52.Theresa May says she's delivering the 2015 Conservative manifesto,

:00:53. > :00:55.but after the government confirms it's ditching

:00:56. > :00:59.another Cameron policy - this time on schools.

:01:00. > :01:05.Do the PM's policy U-turns amount to more than just a bit of tweaking?

:01:06. > :01:08.After weeks of wrangling, the Belgian region of Wallonia

:01:09. > :01:13.drops its opposition to a trade deal between Canada and the EU.

:01:14. > :01:22.So what does this mean for future trade deals?

:01:23. > :01:28.And after Jeremy Corbyn compares Theresa May with Baldrick

:01:29. > :01:30.from Blackadder, what makes a good political insult?

:01:31. > :01:36.We've got our guide to the top five best ever.

:01:37. > :01:44.All that in the next hour, and with us for the first half

:01:45. > :01:46.of the programme today, Jenni Russell, who writes for

:01:47. > :01:49.the Times and the Evening Standard, and the Sun's political

:01:50. > :01:57.Let's kick off with the question of what assurances the Government

:01:58. > :02:00.gave to Nissan to ensure the Japanese company would commit

:02:01. > :02:02.to continued investment in their Sunderland factory.

:02:03. > :02:05.Last night, the Business Secretary, Greg Clark, insisted there was no

:02:06. > :02:12.One of the things that we have committed to do as part

:02:13. > :02:15.of our industrial strategy is to build on our strengths, to make

:02:16. > :02:18.sure our universities and our research institutions work

:02:19. > :02:22.Hang on, sorry, I must interrupt you.

:02:23. > :02:25.Are you saying that you said to Nissan in Japan that

:02:26. > :02:29.you, we're going to do development work on electric cars

:02:30. > :02:31.and therefore you can do two new models here

:02:32. > :02:36.It's a big problem, and I've referred to it

:02:37. > :02:49.You never promised them a cheque book, nothing like that?

:02:50. > :02:54.There is no cheque book, I don't have a cheque-book.

:02:55. > :02:57.The important thing is they know that this is a country

:02:58. > :02:59.in which they can have confidence that they can invest.

:03:00. > :03:02.That was the assurance on the understanding that they had,

:03:03. > :03:04.and they have invested their money on that basis.

:03:05. > :03:06.We've been joined by Labour's Shadow International Trade

:03:07. > :03:19.Hello. Would you like to congratulate the business secretary

:03:20. > :03:22.for keeping Nissan in the UK, safeguarding 7000 jobs in Sunderland

:03:23. > :03:31.and keeping his cheque-book in his pocket? I think it's wonderful that

:03:32. > :03:35.Nissan is going to build two cars in the UK. There will be 40,000 people

:03:36. > :03:39.who slept more soundly last night knowing that their mortgages were

:03:40. > :03:42.going to be paid at the end of the month, their rents were going to be

:03:43. > :03:48.paid, that they have jobs and security for the future. So you

:03:49. > :03:53.would do the same? The problem is we don't know what the same is. The

:03:54. > :03:58.question that Greg Clark so judiciously avoided answering is

:03:59. > :04:03.what is the support and assurances that have been promised? He said in

:04:04. > :04:08.the letter that he wrote there were some assurances. What we need to

:04:09. > :04:15.know is, is this generally for the industry? And as Jim Farley of Ford

:04:16. > :04:22.has said, you can't do a deal for one and not for the other. We have

:04:23. > :04:27.to know. And actually, if there is money involved, even if its

:04:28. > :04:30.compensation in the future, if the tariffs remain in place, we do need

:04:31. > :04:34.to know what is happening with public money and public resources.

:04:35. > :04:41.Do you suspect that is what has happened? I am not going to make

:04:42. > :04:44.accusations. What I do know is what is in the public domain. Letters

:04:45. > :04:51.were written, people were dispatched to Japan. And the chief executive of

:04:52. > :04:58.the company had said only a couple of weeks ago, given that he needed

:04:59. > :05:03.to make investment decisions, he had to have a deal about compensation

:05:04. > :05:09.for any tariffs that would arise as a result of us leaving the EU. He

:05:10. > :05:16.said Nissan Micra not invest unless the government gave compensation for

:05:17. > :05:21.costs related to new tariffs. What will you say to Greg Clark? What

:05:22. > :05:24.assurances are you seeking from the government today? What I am saying

:05:25. > :05:32.to Greg Clark is, show us the letter. If this is simply a letter

:05:33. > :05:37.that doesn't promise anything, that is unusual, out of the ordinary, or

:05:38. > :05:41.any more than warm words about supporting the sector in general,

:05:42. > :05:50.there is no need to hide it. What is the secrecy Gyor? This is the point.

:05:51. > :05:53.-- what is the secrecy here? The Times reports that the letter was

:05:54. > :05:57.regarded by Nissan as they promised they would not have to bear the cost

:05:58. > :06:04.of punitive tariffs on car exporter if Britain leaves EU customs error

:06:05. > :06:09.-- area. They seem to have had sight at least of this letter. You want to

:06:10. > :06:14.see it yourself? I think the public have a right to see it. And

:06:15. > :06:16.certainly every other business chief executive, not only in the

:06:17. > :06:24.automotive industry, will want to see it as well. What they want to

:06:25. > :06:29.know is why, given everybody is now behind as -- Kos exiting the EU, and

:06:30. > :06:33.the government is saying this is a good thing that is opening

:06:34. > :06:41.opportunities, why are we trying to bribe copies, if that is what it is?

:06:42. > :06:49.-- companies. This is supposed to be a new opportunity for Britain

:06:50. > :06:55.trading in the world. We think if we are having to persuade companies to

:06:56. > :07:01.stay... Are you saying other sectors will have to be equally bribed? I am

:07:02. > :07:06.not making an allegation of a bride, but the government has to be

:07:07. > :07:12.transparent. Harry Cole, what do you make of it? This will come down to

:07:13. > :07:19.the words remain competitive. Misano said the government has promised --

:07:20. > :07:22.Nissan has said the government has promised they will remain

:07:23. > :07:27.competitive. The government wants to support the car market and for it to

:07:28. > :07:33.remain competitive. But go back to the idea this is nothing new, that

:07:34. > :07:36.is the next conversation. Misano only build the plant in Sunderland

:07:37. > :07:42.because they were encouraged to buy the government's industrial

:07:43. > :07:48.strategy. The idea that was ever going to change remains to be seen.

:07:49. > :07:53.You are saying it is interventionism? Whether you agree

:07:54. > :08:00.or not, Theresa May said we need a new industrial strategy. Lo and

:08:01. > :08:04.behold, what we are seeing here is industrial strategy. Aren't there

:08:05. > :08:10.are dangers that if you intervene in one sector, other sectors say, what

:08:11. > :08:14.about us? That is what is so puzzling. Those of us who didn't

:08:15. > :08:16.want to leave the European Union because we thought it would mean a

:08:17. > :08:22.financial hit to the country, what will the government do? Are they

:08:23. > :08:27.going to subsidise agriculture? Are they going to turn to the city and

:08:28. > :08:33.say, if banks cannot operate, we will compensate you for your losses?

:08:34. > :08:38.Where do they stop? That is the problem. We do not know what has

:08:39. > :08:45.been promised. Nissan are quite certain it will remain profitable to

:08:46. > :08:49.be in the EU. The government may be promising Nissan that we will charge

:08:50. > :08:56.cars that are imported into this country 10% tax and we will use that

:08:57. > :09:00.to subsidise use. -- you. Will they do that in every sector? It would be

:09:01. > :09:03.impossible. Is that something to take into account, maybe you could

:09:04. > :09:09.offset one set of tariffs with another? All of us will agree that

:09:10. > :09:17.we do not want a tariff war. Again, let's think about the wider

:09:18. > :09:22.philosophy of the government. It is supposed to be free trade. One may

:09:23. > :09:29.question why, if we are so in favour of free trade, we are leaving the

:09:30. > :09:32.largest free-trade bloc in the entire world. That is nonetheless

:09:33. > :09:37.the rhetoric of the government. One has to look at that very carefully.

:09:38. > :09:43.You can see that the devaluation of the pound will also make Nissan cars

:09:44. > :09:49.produced in the UK cheaper to buy abroad as well. And I think it's not

:09:50. > :09:53.just looking at the 10% of tariffs that may be charged. It is also the

:09:54. > :09:59.thought perhaps that if the pound keeps sinking in value, then

:10:00. > :10:05.actually there will be a boost to Nissan sales. That may also have

:10:06. > :10:10.played some role in the decision. That is not a good indicator for our

:10:11. > :10:17.economy in general. It means that people think the value of UK plc has

:10:18. > :10:24.gone down. Is it Labour Party policy that the UK should remain a member

:10:25. > :10:27.of the single market? Its Labour Party policy that we should now

:10:28. > :10:33.leave the EU, as the people have asked. But that we should retain the

:10:34. > :10:38.best possible access for our companies. And let's not just make

:10:39. > :10:42.this about the big Manufacturing brands. 60% of all people employed

:10:43. > :10:48.in the private sector are employed in small and medium-sized companies.

:10:49. > :10:51.We need a strategy that works for them, not just for the big boys.

:10:52. > :10:53.Barry Gardiner, thank you. Now it's time for our daily quiz,

:10:54. > :10:55.which today relates to the announcement that Twitter

:10:56. > :10:58.is to close its video We thought we would take a look

:10:59. > :11:02.at some of the most watched vines But which of these three

:11:03. > :11:07.is the most viewed? Is it David Cameron checking his tie

:11:08. > :11:14.before an interview? Is it Ed Miliband looking

:11:15. > :11:22.the camera and set to music? Later in the show, we'll see

:11:23. > :11:31.if Jenni and Harry know Theresa May insists her government

:11:32. > :11:37.is committed to delivering David Cameron's 2015

:11:38. > :11:41.Conservative manifesto. But over the past weeks and months,

:11:42. > :11:44.the May government has dropped some Cameron-era policies

:11:45. > :11:48.and tweaked others. Yesterday an announcement

:11:49. > :11:52.was slipped out, confirming that the Education for All Bill,

:11:53. > :11:54.which aimed to convert all schools in England

:11:55. > :12:07.to academies, will be scrapped. How much has government policy

:12:08. > :12:09.changed from the programme they were elected on last year?

:12:10. > :12:11.None of the other parties could keep up with the Conservatives

:12:12. > :12:13.when their car crossed the line first in 2015.

:12:14. > :12:16.But government has made a number of U-turns since Theresa May

:12:17. > :12:18.replaced David Cameron in the driving seat.

:12:19. > :12:23.So what has the Prime Minister been tinkering with under the bonnet?

:12:24. > :12:25.She's already changed the Government's approach

:12:26. > :12:27.to tackling the deficit, abandoning George Osborne's pledge

:12:28. > :12:37.A key part of the Help to Buy scheme - another flagship Osborne policy -

:12:38. > :12:40.was also scrapped by the Chancellor, Philip Hammond, last month.

:12:41. > :12:42.The scheme will no longer offer mortgage guarantees to help people

:12:43. > :12:50.Plans to let consumers raise money by selling their pension annuities

:12:51. > :12:56.On education, plans were dropped last week, to make all children

:12:57. > :12:59.resit SAT tests at secondary school if they didn't achieve the expected

:13:00. > :13:05.And it was confirmed yesterday that the Government will no longer

:13:06. > :13:08.be bringing forward a previously announced Education Bill to convert

:13:09. > :13:12.schools to academies, clearing the way for

:13:13. > :13:19.So although it looks like the same Conservative car, is Theresa May's

:13:20. > :13:23.government now headed for a different destination?

:13:24. > :13:26.Well, here with me to discuss this further is the Conservative

:13:27. > :13:38.Welcome. Is Theresa May pursuing the same government programme you were

:13:39. > :13:44.elected on last year? The broad principles are exactly the same. We

:13:45. > :13:47.are committed to deficit reduction, driving School standards and having

:13:48. > :13:51.greater freedom in terms of provision of school. The free school

:13:52. > :13:55.programme will absolutely be at the centre of what the government is

:13:56. > :14:00.trying to do. But we have to appreciate we have had a huge vote,

:14:01. > :14:03.Brexit, very significant. You have a different chancellor, a different

:14:04. > :14:09.Prime Minister. That hasn't happened before. The EU referendum gives

:14:10. > :14:17.Theresa May free rein to disregard the manifesto of 2015, apart from

:14:18. > :14:21.broad principles? The EU referendum has completely changed the context

:14:22. > :14:24.in which government is operating. We have a series of challenging

:14:25. > :14:29.negotiations ahead. It is absolutely fair to see a government with

:14:30. > :14:32.different personnel have different emphases. You wouldn't expect

:14:33. > :14:40.anything else. It is not as if we are following a cookbook recipe

:14:41. > :14:45.rigidly in a nonreflective way. You have to have different people,

:14:46. > :14:49.different personalities. The party evolves. What about the people who

:14:50. > :14:53.voted Conservative because they like the look of the education bill,

:14:54. > :14:59.which has now been dropped? You were elected to expand academy schools.

:15:00. > :15:06.What mandate does the government now have? A couple of things. On the

:15:07. > :15:15.education mandatory academies, that was announced in the budget this

:15:16. > :15:18.year. Strangely. They all had to be by 2022. Nicky Morgan announced,

:15:19. > :15:22.when she was Education Secretary before the referendum, that the

:15:23. > :15:26.policy would be reversed. It was going to be watered down. It was

:15:27. > :15:27.watered down to the point where people like you said it was a

:15:28. > :15:36.U-turn. But the commitment was still there

:15:37. > :15:40.in the manifesto, wasn't it? The second thing I want to say, after

:15:41. > :15:43.I've been on this programme I'm going to come back to my

:15:44. > :15:47.constituency surgery. None of them is going to mention the fact that

:15:48. > :15:51.the manifesto commitments haven't been met on these things. Are you

:15:52. > :15:56.sure? While much unless they've changed. He has primed them in

:15:57. > :16:00.advance! Are usually get a list of what they are going to blog about.

:16:01. > :16:03.None of them are saying, we are very upset with Theresa May because she's

:16:04. > :16:09.not going to continue David Cameron's programme. What about

:16:10. > :16:14.economic policy. You said that you are still broadly trying to tackle

:16:15. > :16:19.the deficit. But the manifesto you were elected on clearly said, I am

:16:20. > :16:23.quoting, the only way to keep our economy secure the future is to

:16:24. > :16:26.eliminate the deficit entirely and start running a surplus, anything

:16:27. > :16:30.less would be to ignore the lessons of the past, and the surplus was to

:16:31. > :16:34.be removed into at the end of this Parliament, that is not going to

:16:35. > :16:38.happen now, is it, with Philip Hammond's reset of the economy.

:16:39. > :16:45.Philip Hammond has recognised the reality. I came in 2010, the plan at

:16:46. > :16:48.that time was to reduce the deficit to something like ?20 billion by

:16:49. > :16:51.2015. It's sad to say, but we missed every target in the last Parliament.

:16:52. > :16:54.What Philip is saying is, there was no point in setting these targets

:16:55. > :16:58.if, as in the last Parliament, we missed every single one. I think it

:16:59. > :17:04.is a more responsible approach. But, you know, there has been a

:17:05. > :17:09.significant shift in a number of policies. We could have included

:17:10. > :17:13.Philip Hammond's plan to stop selling shares to avoid the bank to

:17:14. > :17:20.the public. A much cooler at home to Northern Powerhouse, George

:17:21. > :17:23.Osborne's baby. Going back on plans to curb junk food advertising as

:17:24. > :17:27.part of the obesity strategy. People will be looking at this Government

:17:28. > :17:32.and thinking, it is very different, this isn't exactly what I voted for.

:17:33. > :17:35.Or are you saying, we've got a new leader, be loud and proud about it,

:17:36. > :17:38.new leader, new policies, is that what was saying? We have a new

:17:39. > :17:42.leader and new personalities and they have a slightly different

:17:43. > :17:49.approach. Nobody is saying, I'm not going to break the these people

:17:50. > :17:51.because they are not sticking to obesity strategy. Very few people

:17:52. > :17:53.will be saying that. They recognise it as a Conservative government,

:17:54. > :17:57.they look at Labour and the alternatives and say, no, thank you

:17:58. > :18:00.very much. The polling suggests that Theresa May is enjoying a honeymoon

:18:01. > :18:04.period. People are broadly supportive of what the Government is

:18:05. > :18:07.trying to do. Are you effectively saying the manifesto isn't worth the

:18:08. > :18:12.paper it is written on? No, what I'm saying is that if you have different

:18:13. > :18:16.people and you have a seismic road like Brexit, it's not surprising to

:18:17. > :18:19.see that a new leadership will have slightly different and this is

:18:20. > :18:24.impolitic -- a seismic vote. Is perhaps the issue is to have another

:18:25. > :18:28.general election, what do you think? I think Kwasi Kwarteng is absolutely

:18:29. > :18:32.right. I speak not as a Tory supporter, but it is clear that the

:18:33. > :18:36.Tories have a mandate at the moment, 40% in the polls, nobody thinks

:18:37. > :18:38.there is any serious opposition. People who are really worried about

:18:39. > :18:43.Brexit nevertheless do not think that any other party can takeover.

:18:44. > :18:47.They do recognise that circumstances have changed. Whether there will be

:18:48. > :18:50.another election is an interesting question. In many ways it would make

:18:51. > :18:56.the reason may's wife a great deal easier if she did, with the

:18:57. > :19:00.opposition in total disarray -- Theresa May's life. Reselection

:19:01. > :19:04.coming up and internal rows in Labour, she would get in fact a

:19:05. > :19:08.majority. On the other hand, we know she has said, I won't do this, I

:19:09. > :19:13.have a mandate, will carry on. So far she has claimed that she wants

:19:14. > :19:19.to keep her word. But the manifesto has changed. Why can't her word

:19:20. > :19:23.change on Brexit? I think the reason may is a new Prime Minister, she is

:19:24. > :19:28.clearing the way, she doesn't want to fight David Cameron's old baffles

:19:29. > :19:30.or George Osborne's all battles on academies, she wants to clear the

:19:31. > :19:34.field of battle because she is about to have a huge row over grammar

:19:35. > :19:37.schools, she has the hammer that through the House. What does annoy

:19:38. > :19:42.me a little bit about all of this is that when Theresa May stands up at

:19:43. > :19:45.Tory Party conferences saying, we're going to reform capitalism and put

:19:46. > :19:50.workers marching forwards towards Socialism together, you know! When

:19:51. > :19:54.at Miliband even hinted that the things, people like Theresa May

:19:55. > :19:57.stood up and said he was an economic threat to the nation committee is

:19:58. > :20:01.dangerous, she should not be anywhere near the leaders of power.

:20:02. > :20:05.Then they say it is all wonderful but so likes doing his policies.

:20:06. > :20:13.People get sick of it. You know, politicians attacking others. That

:20:14. > :20:17.is one of the classic divisions. Tories say, we're going to reform

:20:18. > :20:20.capitalism, and people don't get along. They are the party of

:20:21. > :20:23.capitalism, people assume they are not going to threaten it. It is only

:20:24. > :20:28.maybe that could do things like reforming welfare and the NHS will

:20:29. > :20:34.stop Iain Duncan Smith would have something to say about that! Labour

:20:35. > :20:38.can do it with less criticism. That is the issue, you can always deal

:20:39. > :20:41.more easily with things which are seen to be your natural territory

:20:42. > :20:47.that you would defend, because people don't assume that you have

:20:48. > :20:50.other territories. Your characterisation of the Prime

:20:51. > :20:59.Minister's speech is exaggerated, I think! It was very much like

:21:00. > :21:06.Miliband! She didn't say, let's march to socialism! Intervening in

:21:07. > :21:10.the energy market was Miliband policy, workers on company boards,

:21:11. > :21:16.Miliband policy, borrowing to invest, Ed Balls' policy. The Tories

:21:17. > :21:19.hammered him for it. David Cameron and George Osborne were talking

:21:20. > :21:23.about these things. They were talking about trying to make

:21:24. > :21:28.capitalism there for a broader mass of people than just a few fat cats.

:21:29. > :21:32.And thank goodness some people are finally starting to see that,

:21:33. > :21:36.especially when the Brexit vote shows that people feel that

:21:37. > :21:40.capitalism has treated them badly. Tory voters voted against those

:21:41. > :21:43.policies are the last election. We have to leave it there. Kwasi

:21:44. > :21:44.Kwarteng, thank you very much indeed.

:21:45. > :21:46.There's going to be a parliamentary by-election

:21:47. > :21:49.in Richmond, in West London, on the 1st of December.

:21:50. > :21:51.But you've probably heard enough about that in recent days.

:21:52. > :21:53.However, you probably haven't heard that there were three

:21:54. > :21:56.These were not, of course, for Westminster, but

:21:57. > :22:01.Labour held the ward of Rhyl West, in North Wales, and there were two

:22:02. > :22:05.by-elections in Rother in East Sussex - the Conservatives

:22:06. > :22:08.held Darwell, and Collington was gained by an Independent,

:22:09. > :22:16.Well, some people think that these local by-elections are a good

:22:17. > :22:18.indicator of the political parties' underlying electoral strength.

:22:19. > :22:26.Since the local elections on 5th May, there have been 139 local

:22:27. > :22:30.council by-elections held across England, Wales and Scotland.

:22:31. > :22:33.So how have the parties been getting on?

:22:34. > :22:38.The Conservatives have recorded a net loss of 14 seats.

:22:39. > :22:41.It's bad news for Labour too - they're down eight.

:22:42. > :22:44.Ukip aren't doing too well either - they've lost a total

:22:45. > :22:50.But the Lib Dems, in stark contrast, have been doing very well.

:22:51. > :23:02.And the Greens have gained one councillor.

:23:03. > :23:05.To read the runes of these local election results, we've been joined

:23:06. > :23:07.by Professor Tony Travers from Department of Government

:23:08. > :23:23.Tony Travers, you are excited by all of this, I know! Bring your

:23:24. > :23:27.excitement with you! There are local by-elections every Thursday almost

:23:28. > :23:30.all year round. It's amazing what you learn! It looks like there is

:23:31. > :23:35.one clear story coming out at least from this recent set. By-election

:23:36. > :23:40.wins for the Dems. Are they on the up? Remember, almost all of these

:23:41. > :23:45.elections will last when the Lib Dems were doing really badly during

:23:46. > :23:49.the coalition or immediately afterwards on general election day

:23:50. > :23:53.in 2015, it is a low base. On the other hand, they are doing much

:23:54. > :23:56.better, better in these by-elections than in national opinion polls,

:23:57. > :24:01.interestingly. But the other story of course is that Labour, as the

:24:02. > :24:05.main opposition party, is really not doing well at all. So if you add it

:24:06. > :24:09.all together, it does tell us something about the shifting sands

:24:10. > :24:18.underneath what becomes national politics later on. We mentioned that

:24:19. > :24:20.that Labour have lost eight councillors. The Conservatives have

:24:21. > :24:23.lost 14. Are you saying that as part of the course for the government

:24:24. > :24:26.party? The Conservatives have been in power for six and a half years

:24:27. > :24:29.now, they are going in the midterm in the second time, you would expect

:24:30. > :24:34.them to do badly in by-elections and local elections, that's what is

:24:35. > :24:37.happening. Not bad badly, in fact, in a number of by-elections there is

:24:38. > :24:41.a swing from Labour to the Conservatives underneath the overall

:24:42. > :24:45.result. But the Labour, who have now been in opposition since 2010, they

:24:46. > :24:50.really ought to be picking up not only in these local by-elections

:24:51. > :24:53.week by week, but if you go back to the May elections, the local

:24:54. > :24:57.elections this year, they didn't do nearly as well as an opposition

:24:58. > :25:02.party should have done. One or two years after a general election. If

:25:03. > :25:05.you add up the local election results, particularly once a year

:25:06. > :25:09.when they take place altogether, there are Berry good indicators of

:25:10. > :25:13.how well the party is likely to do at an election. That is the thing we

:25:14. > :25:16.always look for, that read across from success in by-elections like

:25:17. > :25:22.these across to the general election. For the Lib Dems, who are

:25:23. > :25:24.placing so much store on these by-elections and indeed the

:25:25. > :25:29.by-election coming up in Richmond, they were very pleased with their

:25:30. > :25:32.results in Witney, have they got cause to not necessarily celebrate,

:25:33. > :25:37.but to have a lot more optimism than they may have had before now? Well,

:25:38. > :25:40.less pessimism, perhaps! LAUGHTER

:25:41. > :25:43.In fairness to the Lib Dems, this is the way they built up. If you

:25:44. > :25:48.remember, the Lib Dems did really badly in the 50s and 60s, there was

:25:49. > :25:54.the old joke about how small the liberal conference was. Since then,

:25:55. > :25:57.over 60s, 70s, 80s, they built up step-by-step, pavement politics, all

:25:58. > :26:02.of that, they got to the point where in the 2010, after the 2010

:26:03. > :26:06.election, there were enough of them with the Conservatives to form a

:26:07. > :26:09.government. That proved the undoing because they were punished for that

:26:10. > :26:14.in 2015. I suspect what we are seeing is the beginning of a gradual

:26:15. > :26:19.build up step-by-step. The question is, how long will it take. The

:26:20. > :26:21.by-election in Richmond-upon-Thames is Tripoli interesting, because

:26:22. > :26:27.there is only things going on at once inside it -- Tripoli

:26:28. > :26:30.interesting. Jenni and Harry, you will be watching that. Are you

:26:31. > :26:34.anticipating, Jenni, that the Lib Dems could see an improvement? What

:26:35. > :26:37.is your reading of things? The interesting question is whether it

:26:38. > :26:41.becomes a referendum on Brexit rather than a referendum, which

:26:42. > :26:45.Goldsmith hopes it is, on Heathrow. The problem for him is that he is

:26:46. > :26:50.personally popular but his constituency voted heavily for

:26:51. > :26:55.Remain. This is Zac Goldsmith who has stood down. In order to protest

:26:56. > :26:59.about the Heathrow decision. But the one left-wing stance against him

:27:00. > :27:03.from the Lib Dems and makes it a referendum on Brexit... A hefty

:27:04. > :27:07.majority would overturn him. He has worked that seat for 12 years now

:27:08. > :27:15.and built up a very strong database, I understand, of the voters and who

:27:16. > :27:18.they are he is popular, got a whacking great majority. It is over

:27:19. > :27:27.20,000? About 23,000. They need 17% to remain. The big test in this, can

:27:28. > :27:31.Lib Dems drag off local issue? He has a local reputations is

:27:32. > :27:37.officially enough to put trust in a candidate who no one has actually

:27:38. > :27:41.heard of. Tony, what do you think? He's in a slightly difficult

:27:42. > :27:49.position. I agree with all of that, but I think opposition parties will

:27:50. > :27:54.try to say, vote against the Conservatives to show that we have

:27:55. > :27:58.opposition. I think the problem the that Goldsmith, if he has a large

:27:59. > :28:01.majority, if it were to fall, how would we read that -- the problem

:28:02. > :28:06.for Zac Goldsmith. He is trying to campaign against the airport. If

:28:07. > :28:09.that majority falls, which most people think it might, I'm not sure

:28:10. > :28:12.that would look like a resounding win against the airport. Interesting

:28:13. > :28:17.that you could have decided not to put up a candidate in that seat. --

:28:18. > :28:25.that Ukip. How unusual is it for major parties to not field

:28:26. > :28:30.candidates in important seats? It is an unusual circumstance, a

:28:31. > :28:35.by-election, Jo Cox's seat was a different kind of case. I think it

:28:36. > :28:39.is a usual, but normally in by-elections as you know, there are

:28:40. > :28:43.17 or 18 candidates, including all of our old friends who stand in lots

:28:44. > :28:48.of by-elections. It is an usual, but I think what in a sense Ukip are

:28:49. > :28:54.doing here, Labour are thinking about this, whether they should make

:28:55. > :28:59.this a fight perhaps about the EU, and about the referendum, and all of

:29:00. > :29:02.that all over again. I think they are probably thinking, let's make

:29:03. > :29:07.this as near as possible a binary choice. The question is, on what?

:29:08. > :29:09.Thank you very much. Those questions will continue.

:29:10. > :29:11.Now, how do you cut down your political enemies

:29:12. > :29:15.Well, with the acerbic wit of a great political insult, of course.

:29:16. > :29:17.But did Jeremy Corbyn's attempt at PMQs make the mark?

:29:18. > :29:23.On Monday, Mr Speaker, the Prime Minister told the House,

:29:24. > :29:27.and I quote, "We have a plan, which is not to set

:29:28. > :29:31.out at every stage of the negotiation the details."

:29:32. > :29:36.I've been thinking about this for a couple of days, Mr Speaker.

:29:37. > :29:45.I think when you're searching for the real meaning

:29:46. > :29:47.and the importance behind the Prime Minister's statement,

:29:48. > :29:49.you have to consult the great philosophers.

:29:50. > :29:59.The only one I can come up with, Mr Speaker, is Baldrick,

:30:00. > :30:09.who says, "Our cunning plan is to have no plan!"

:30:10. > :30:15.Tony Robinson afterwards said Baldrick means Baldrick!

:30:16. > :30:17.Not perhaps the most effective political insult ever.

:30:18. > :30:19.In fact, it doesn't make it into the Daily Politics'

:30:20. > :30:26.At five, well, we had to start with Winston Churchill.

:30:27. > :30:29.A politician whose stinging quips were nearly as good

:30:30. > :30:34.His all-time classic has to be the one aimed at the Labour MP

:30:35. > :30:37.Bessie Braddock, and what better way to come back when someone complains

:30:38. > :30:40.how drunk you are - "Tomorrow I shall be sober,

:30:41. > :30:46.In at number four, so who could cut Winston Churchill down to size?

:30:47. > :30:51.David Lloyd George, of course, the man who steered Britain

:30:52. > :30:55.He was talking about Churchill's reputation as a self-publicist,

:30:56. > :30:57.when he suggested the British bulldog would make a drum out

:30:58. > :31:01.of the skin of his own mother in order to sound his own praises.

:31:02. > :31:07.At three, remember when Gordon Brown entered Number Ten with a reputation

:31:08. > :31:09.for being a formidable Chancellor and everyone quite

:31:10. > :31:15.Then came the election that never was and things

:31:16. > :31:18.In the Commons, Vince Cable mercilessly summed up

:31:19. > :31:26.The House has noticed the Prime Minister's remarkable

:31:27. > :31:31.transformation in the last few weeks from Stalin to Mr Bean.

:31:32. > :31:33.In at two, they called it the Rose Garden love-in,

:31:34. > :31:35.when Nick Clegg took the Liberal Democrats into Government.

:31:36. > :31:38.But soon found himself getting all the blame and little credit.

:31:39. > :31:41.People called the Lib Dems the Conservatives' human shield,

:31:42. > :31:48.David Cameron's kind of lapdog-cum-protection device

:31:49. > :31:51.for the more difficult things that David Cameron has to do.

:31:52. > :31:54.But, taking the top spot this week, the best political insults

:31:55. > :31:56.are the ones that do lasting political damage.

:31:57. > :31:59.Michael Howard was Home Secretary in the 90s when he fell out badly

:32:00. > :32:02.with his Prisons Minister, Ann Widdecombe.

:32:03. > :32:05.She said he had "something of the night about him."

:32:06. > :32:08.A reputation that stubbornly stuck with him, and duly cost him

:32:09. > :32:14.And even when he did win the leadership six years

:32:15. > :32:16.later, people were still banging on about it.

:32:17. > :32:18.But Ann Widdecombe herself was a little coy when asked

:32:19. > :32:22.What does "something of the night" mean?

:32:23. > :32:24.I've just said to you, I don't really want

:32:25. > :32:44.Something of the night. That was one of the great insult of our time. Do

:32:45. > :32:48.you have a favourite? George Bush putting a silver foot in his mouth.

:32:49. > :32:52.When the great history books are written about Brexit, I think people

:32:53. > :32:56.will look back at Nigel Farage standing in the European Parliament

:32:57. > :33:04.and summing of really what everyone thought was, who were these

:33:05. > :33:13.unelected Eurocrats? A bit rude, but really, who are you? Eurocrats

:33:14. > :33:18.nobody voted for. As with so many things in the anti-Europe campaign,

:33:19. > :33:23.it was based on a total falsity. Was -- at the back of that shot was a

:33:24. > :33:26.man with his head in his hand who turned out to be a trained cardiac

:33:27. > :33:34.surgeon. These people had a real jobs. What about your favourite? The

:33:35. > :33:39.brilliant politico and -- political insults and those that get the heart

:33:40. > :33:46.of some weakness. Churchill said of Clement Attlee was a shebeen she's

:33:47. > :33:51.clothing. Michael foot was called Worzel Gummidge. And when Michael

:33:52. > :33:57.foot said of Norman Tebbit he was a semi-housetrained polecat, that lost

:33:58. > :34:04.an image of Tebbit in the public mind. Churchill to Bessie Braddock,

:34:05. > :34:08.that was not a need political insults, that was just a classic

:34:09. > :34:12.sexist put down of the kind Donald Trump is engaged in. I don't think

:34:13. > :34:13.it makes it into the top five political insults.

:34:14. > :34:18.It's time now to find out the answer to our quiz.

:34:19. > :34:27.The question was, which of these is the most used political vine in the

:34:28. > :34:33.UK? David Cameron is checking his tie before an interview. Is it Ed

:34:34. > :34:44.Miliband looking moody, set to music? Or is it Michael Gove

:34:45. > :34:49.clapping? The one that I would keep watching would be Michael blow. He

:34:50. > :34:54.looks like a Thunderbird puppet. The seductive Ed Miliband. Do you think

:34:55. > :35:06.there are dreamy girls who look at that? The answer is... Michael Gove.

:35:07. > :35:06.I like Michael but that is a wonderful vine.

:35:07. > :35:11.Coming up in a moment, it's our regular look at what's been

:35:12. > :35:20.For now, it's time to say goodbye to Jenni and Harry.

:35:21. > :35:24.So for the next half an hour, we're going to be focussing on Europe.

:35:25. > :35:26.We'll be discussing trade deals, big companies' tax bills,

:35:27. > :35:29.First though, here's our guide to the latest from Europe,

:35:30. > :35:39.A trade deal between the EU and Canada is back on the table

:35:40. > :35:43.after Belgian politicians agreed to last-minute concessions.

:35:44. > :35:46.Canadian PM Justin Trudeau says he is confident

:35:47. > :35:52.Meanwhile, Austria, Denmark, Germany, Sweden and Norway can

:35:53. > :35:54.extend their use of border controls, which have been in place

:35:55. > :35:59.since the summer to stem the flow of migrants.

:36:00. > :36:02.Speaking of which, Italy may veto the EU budget unless other countries

:36:03. > :36:09.PM Matteo Renzi said the likes of Hungary need to help out.

:36:10. > :36:11.Big companies like Starbucks and Apple could be subject

:36:12. > :36:15.to new EU-wide tax rules, which the Commission hopes should

:36:16. > :36:19.stop them shifting their profits around to lessen their tax bill.

:36:20. > :36:21.And the President of the European Parliament referred

:36:22. > :36:24.the altercation between Ukip MEPs Mike Hookem and Steven Woolfe

:36:25. > :36:36.Party leader Nigel Farage was not impressed.

:36:37. > :36:39.This is completely political on behalf of the European Union.

:36:40. > :36:46.Ive been joined by two MEPs, Patrick O'Flynn for Ukip,

:36:47. > :36:54.Let's take a look at one of those stories in more detail -

:36:55. > :36:55.the investigations into the altercation between Ukip MEPs

:36:56. > :37:14.Let me ask you, Patrick O'Flynn, first of all, obviously there has

:37:15. > :37:20.been an internal investigation by Ukip. Now we know that the president

:37:21. > :37:23.of the European Parliament, Martin Schulz, has reported the altercation

:37:24. > :37:29.to the French state prosecutors because they watched alleged

:37:30. > :37:34.criminal activity -- there was. Is that a good thing? Another thing

:37:35. > :37:39.Martin Shields has done is prejudice any investigation by saying that in

:37:40. > :37:44.the parliament he had no doubt about Steven Woolfe's allegations. I find

:37:45. > :37:52.that very regrettable. I saw the preamble. If you read the party

:37:53. > :37:56.chairman's report thoroughly, you will see that within the room there

:37:57. > :38:01.was general understanding that Steven Woolfe had instigated this

:38:02. > :38:06.altercation. There was an understanding that he had said,

:38:07. > :38:09.let's take this outside and removed his jacket. Nobody knows what

:38:10. > :38:14.happened between the men and whether a blow was delivered? That is right.

:38:15. > :38:18.What we do know is that the next day in the Daily Mail there were quotes

:38:19. > :38:22.from Mr Woolfe saying that Mike Hookem had got the wrong end of the

:38:23. > :38:27.stick and he was not challenging him to an altercation. Within the room

:38:28. > :38:33.that was completely understood. Their work shouts. You think you

:38:34. > :38:37.represent -- reprimand from Mike Hookem is enough? Should there be

:38:38. > :38:42.further investigation? It is quite astonishing that you have two grown

:38:43. > :38:47.adults who are unable to reconcile their differences in a normal way.

:38:48. > :38:52.If you have a criminal assault taking place, wherever it is,

:38:53. > :38:57.allegedly, then it would seem normal that the authorities would want to

:38:58. > :39:05.pursue potential prosecutions were proven to be something that would be

:39:06. > :39:13.worthy of pursuing a prosecution on. Presumably we cannot leave it open

:39:14. > :39:18.to individual political parties. What does it say about the behaviour

:39:19. > :39:26.of your party at the European Parliament? The leader of the

:39:27. > :39:35.centre-right party group said Ukip members were behaving like ruffians.

:39:36. > :39:42.What it says about bus is absolutely nothing. After all, several Labour

:39:43. > :39:46.MPs got sent to prison for embezzlement in the last parliament.

:39:47. > :39:55.I would not dream of characterising them as a party and badgers. -- a

:39:56. > :40:01.party of embezzlers. You are an argumentative party, aren't you? We

:40:02. > :40:06.are a party of honest, free debate. But really, trying to characterise

:40:07. > :40:12.physical altercations or invitations, as typical of what kind

:40:13. > :40:16.of meetings we have in the European Parliament, I can assure you it is

:40:17. > :40:23.absolutely a typical. I would like some recognition by Steven Woolfe of

:40:24. > :40:27.personal responsibility and regret. You're prejudicing the outcome by

:40:28. > :40:32.saying it is his fault, aren't you? No. Mike Hookem has apologised and

:40:33. > :40:39.expressed regret. I think Steven Woolfe should do the same. You

:40:40. > :40:45.supporting Suzanne Evans? I certainly am. Paul Nuttall, she and

:40:46. > :40:50.he are close. What happens, would you switch allegiance? I'm

:40:51. > :40:55.supporting Suzanne Evans. I think she should have been allowed to

:40:56. > :41:02.stand in the last election. We have two high-calibre candidates. You

:41:03. > :41:06.didn't fancy it yourself? I see my role as advising, perhaps a

:41:07. > :41:10.spokesman, advising the leader, not actually being the leader. I have

:41:11. > :41:12.seen the pressure Nigel Farage was placed under. The sheer intensity of

:41:13. > :41:16.the job. That is not from me. After years of negotiations,

:41:17. > :41:19.a trade deal between the EU and Canada is on the verge

:41:20. > :41:21.of being approved by But it has been a bumpy few weeks

:41:22. > :41:25.for the CETA trade agreement, with politicians in the Belgian

:41:26. > :41:28.region of Wallonia refusing to agree to the deal until

:41:29. > :41:30.the very last moment. Ellie Price reports

:41:31. > :41:44.from Strasbourg. The problem is even caused Donald

:41:45. > :41:45.Tusk to warn it could be the last EU trade deal.

:41:46. > :41:47.Ellie Price reports from Strasbourg.

:41:48. > :41:49.It has cast a cloud over the European Union.

:41:50. > :41:51.A long heralded trade deal that has been agonisingly close,

:41:52. > :41:55.Ceta has been seven years in the making.

:41:56. > :42:02.Now, in order to get the go-ahead it needs the backing of all 28

:42:03. > :42:07.And it's got the backing of 27 of them.

:42:08. > :42:12.And specifically the southern part of Belgium, Wallonia.

:42:13. > :42:14.Now, that is home to around 3.5 million people, which,

:42:15. > :42:17.when you think about it, is quite a small proportion

:42:18. > :42:28.The Wallonian regional government, headed up by Paul Magnette,

:42:29. > :42:30.was worried about the implications on the environment, labour laws

:42:31. > :42:35.Concerns shared by some MEPs, who say the stalling of the deal

:42:36. > :42:43.I think that it is a good thing for the European Union,

:42:44. > :42:50.Not each member state has got the same possibility.

:42:51. > :42:58.And too often we see that our interests are not covered

:42:59. > :43:03.Others aren't so against Ceta in principle, but say this

:43:04. > :43:07.is the latest symptom of an anti-EU malaise, and must be addressed for

:43:08. > :43:19.I do see that this adds up to crisis after crisis after crisis.

:43:20. > :43:21.And people see again that the Council is not able

:43:22. > :43:28.But on trade, at the same time you see there is a lot

:43:29. > :43:32.of discussions and a lot of question marks in the NGO world,

:43:33. > :43:35.in the unions, but also in the public opinion.

:43:36. > :43:40.We needed to say stop and look at it fundamentally, and that's

:43:41. > :43:43.But those supporting Ceta say the agreement would save EU

:43:44. > :43:47.exporters 500 million euros per year, a good deal

:43:48. > :43:53.And one that is being held up by a small minority.

:43:54. > :43:55.But they say the fault lies with the Belgian constitution,

:43:56. > :43:58.and a lack of compromise on the socialist left,

:43:59. > :44:03.If there are a number of regions which have concerns then, yes,

:44:04. > :44:06.we should go back to the table and check, is this

:44:07. > :44:10.But after so many concerns have been solved, after we were able

:44:11. > :44:12.to convince so many people who had concerns,

:44:13. > :44:18.like the German Economic Minister and the Austrian Chancellor,

:44:19. > :44:21.to only mention two of them, I think if they understood

:44:22. > :44:25.what is Ceta about and what is Ceta not about, then also the region

:44:26. > :44:30.of Belgium should be able to understand this.

:44:31. > :44:32.There is renewed hope now that the deal will be signed

:44:33. > :44:36.But those frustrated by the slow progress point out that Canada

:44:37. > :44:39.is about as like-minded to most EU countries in terms of public

:44:40. > :44:45.services and environmental concerns as you can get.

:44:46. > :44:48.If the EU had such trouble making a deal work with Canada,

:44:49. > :44:50.it may not bode well for trade agreements with other countries

:44:51. > :44:56.The EU had hoped to unfurl its red carpet for Canadian Premier Justin

:44:57. > :44:59.Trudeau this week so he could sign off the deal.

:45:00. > :45:04.When he does finally make it over, it will be too late to stop

:45:05. > :45:07.the questions over the EU's ability to negotiate

:45:08. > :45:18.And we've been joined by Christophe Bondy,

:45:19. > :45:20.a former trade advisor to the Canadian government,

:45:21. > :45:26.who worked for many years on the Ceta trade deal.

:45:27. > :45:34.You must be mopping job row in exasperation at what is happening!

:45:35. > :45:40.Did you think it would be a little bit quicker than it has been? We've

:45:41. > :45:44.been pursuing this agreement since 2009, diligently, and consulting

:45:45. > :45:48.along the way. We understood when Europe decided this would be viewed

:45:49. > :45:52.as a mixed agreement, there could be snags and it could require, because

:45:53. > :45:59.it would require approval at member state level as well. I think we've

:46:00. > :46:03.learned to be patient and I think it's bearing fruit. The final

:46:04. > :46:07.last-minute changes still need to be approved by all the member states.

:46:08. > :46:11.Do you share the Canadian Prime Minister's confidence that that will

:46:12. > :46:15.happen? Yes, in fact there aren't last-minute changes right now. There

:46:16. > :46:21.is an agreement between Belgium and the EU and the war you

:46:22. > :46:26.administration -- and will only about certain steps. Those steps

:46:27. > :46:28.were already understood. Things that were exclusively within the EU

:46:29. > :46:32.competency would be provisionally entered into force, but other

:46:33. > :46:37.elements would require further ratification. They've also requested

:46:38. > :46:40.reference to the European court with regard to one aspect of the

:46:41. > :46:46.agreement, the investment treaty dispute resolution system. But 90%

:46:47. > :46:49.of the agreement will be entering provisionally into force once this

:46:50. > :46:54.last approval goes through. Dragging it down to basics though, Wallonia

:46:55. > :47:01.wanted guarantees that this deal would lead to privatisation and job

:47:02. > :47:05.losses -- the deal would not. And it was almost derailed at the final

:47:06. > :47:10.hour by a group of farmers. Are you surprise that a deal of this mag

:47:11. > :47:15.dude could come down to such a tiny element potentially blocking get --

:47:16. > :47:20.this magnitude. In trade agreements, usually one goes from the broader,

:47:21. > :47:25.easier issues to the last knob issues, that happens in any

:47:26. > :47:30.negotiation, in a sense that was a microcosm. Because the European

:47:31. > :47:35.Union past summer, it gave member states the right to approve the

:47:36. > :47:44.agreement as opposed to being approved at European level, it gave

:47:45. > :47:49.power to the smaller sub regions to express concerns. Farming is very

:47:50. > :47:53.important in Wallonia. They gave them the power and they exercised

:47:54. > :47:57.it. Putting that point to you, Patrick O'Flynn, doesn't this add-in

:47:58. > :48:00.to those concerns that people have had about the difficulties of

:48:01. > :48:06.securing trade deals if you have to have widespread approval and one

:48:07. > :48:11.tiny group in one country can offset a trade deal. It's not going to be

:48:12. > :48:14.that easy, is it? I'd like to congratulate Christophe for

:48:15. > :48:17.concluding this deal with the EU that doesn't have a requirement of

:48:18. > :48:21.freedom of movement, which is the majority of such deals. But I think

:48:22. > :48:26.you're wrong to draw a parallel to the United Kingdom's position and

:48:27. > :48:28.Canada's. I think in round terms, Canada at the moment is

:48:29. > :48:35.approximately a ?35 billion per year and export market -- 30 5 million

:48:36. > :48:41.euros. The United Kingdom is a 350 million export market. My point is

:48:42. > :48:45.that a deal can be derailed by the tiniest element. We cannot just

:48:46. > :48:50.assume that these deals are going to be so easy to strike as we've been

:48:51. > :48:53.told. It is true that the article 50 process could get complicated and

:48:54. > :48:57.convoluted, which is why I would prefer something that I think John

:48:58. > :49:00.Redmond and Peter Lilley have alluded to, sort of looking in the

:49:01. > :49:05.eyeball and say, we are quite happy to carry on with free trade, or we

:49:06. > :49:09.will move to the WTO regime. There was a reporter at the beginning of

:49:10. > :49:13.the week that made clear that if we moved to the WTO regime or exporters

:49:14. > :49:19.would face ?5.2 billion worth of tariffs. But the United Kingdom

:49:20. > :49:24.would raise theirs. Or 10% tariffs on the car industry. Our car

:49:25. > :49:29.industry is the Nissan deal, we are very confident about the continued

:49:30. > :49:33.good place to be to produce motorcars in the United Kingdom. Is

:49:34. > :49:36.this a moment for the EU to think about streamlining its processors

:49:37. > :49:40.when it comes to striking trade deals? I think there will be a lot

:49:41. > :49:44.of questions raised about how we can make it more efficient and speed it

:49:45. > :49:48.up. But ultimately, a lot of the process so much criticism that has

:49:49. > :49:51.been levelled at the EU has been about the lack of democracy and

:49:52. > :49:56.ability for people to have a say about big issues like trade. And

:49:57. > :50:00.here we have, like Tuesday, a bunch of farmers, but ultimately be pulled

:50:01. > :50:04.a key stake on the the outcome of a deal. People who were worried about

:50:05. > :50:08.their livelihoods. Exactly, and the democratic structure has allowed at.

:50:09. > :50:11.Ultimately that is something that ought to be welcomed by those who

:50:12. > :50:15.are calling for increased parliamentary democracy within the

:50:16. > :50:19.EU structures. I mean, they exist and they are implemented. The

:50:20. > :50:24.International Trade Secretary here, Liam Fox, said that a trade deal

:50:25. > :50:30.during article 52 year negotiation process requires only a qualified

:50:31. > :50:35.majority -- the article 52 year negotiation process. But it could be

:50:36. > :50:39.subjected to the same problem? Would have to be approved by all the

:50:40. > :50:44.individual member states? The issue with modern trade agreements is

:50:45. > :50:47.that, unlike old school trade agreements that deal with tariffs

:50:48. > :50:51.and goods, these agreements are much more complex on the issue at

:50:52. > :50:55.European level is that they spill over from purely European to member

:50:56. > :51:00.state competency, which requires consultation and approval at times

:51:01. > :51:03.for those of aspect of the deal. So, you know, I don't want the deal to

:51:04. > :51:07.be struck between Britain and the EU, but in any kind of agreement

:51:08. > :51:12.that the EU is going to be pursuing, it is going to shut on more than

:51:13. > :51:20.just the core trade issues like tariffs. I think it's going to like

:51:21. > :51:24.we were acquired -- likely require certainly larger consultation, and

:51:25. > :51:27.broad approval processes. People might wonder if the EU card make a

:51:28. > :51:34.deal with Canada, who can it make a deal with? Trade deals right now,

:51:35. > :51:37.and this deal with Canada had it in mind, people have certainly become

:51:38. > :51:42.much more aware of, oh, the broad range of issues that are raised in

:51:43. > :51:47.these agreements. They deal not only with tariffs, but also trade in

:51:48. > :51:53.services, regulatory Corporation. They don't force any regulatory

:51:54. > :51:57.change. They just engage different economic spheres in conversation to

:51:58. > :52:03.see if those regulatory barriers can be smoothed over three neutral

:52:04. > :52:07.discussions. So go through mutual discussions. They don't force

:52:08. > :52:10.privatisation either. There are a lot of misconceptions. I think a lot

:52:11. > :52:13.of those discussions are taking place around Ceuta, and hopefully

:52:14. > :52:17.going forward the general public will have a better sense of what

:52:18. > :52:20.they actually entail and they will be more confident. Certainly in

:52:21. > :52:24.Canada right now, there is a broad debate about the link between trade

:52:25. > :52:27.and the social agenda, to help people understand and be confident

:52:28. > :52:36.about the future, because they know that that trade agenda is also

:52:37. > :52:39.linked to a broader system of support. So maybe make these trade

:52:40. > :52:41.deals, explain them a little bit more before they go through this

:52:42. > :52:42.process. Christophe Bondy, thank you.

:52:43. > :52:45.Now, this week MEPs demanded an increase to the EU's budget

:52:46. > :52:49.At more than 160 billion euros, it's an increase on last year.

:52:50. > :52:51.But concern is also growing about a possible shortfall this

:52:52. > :52:54.year, with the slump in sterling's exchange rate meaning the UK's

:52:55. > :52:56.contribution is worth almost 2 billion euros less than forecast.

:52:57. > :52:59.Ellie Price has been talking to German MEP Jens Geier,

:53:00. > :53:01.who is leading the budget negotiations on behalf

:53:02. > :53:04.She began by asking him why MEPs are asking

:53:05. > :53:11.We are not asking for more money, we are asking for sufficient money

:53:12. > :53:14.in order to fulfil what member states demand from

:53:15. > :53:22.You cannot really make working for jobs and growth and trying

:53:23. > :53:27.to cope with the migration crisis a priority and then do not handle it

:53:28. > :53:34.like a priority in terms of giving sufficient means.

:53:35. > :53:38.One of the problems you face is the weaker pound.

:53:39. > :53:40.Obviously that is lowering the contributions that

:53:41. > :53:44.How much of a problem is that for you, and what are

:53:45. > :53:51.So the exchange rate on which the contributions

:53:52. > :53:58.from Great Britain are measured is set on the 31st of December 2015.

:53:59. > :54:01.And after the Brexit, as you perfectly know,

:54:02. > :54:09.So now it costs return 10% more in pound sterling

:54:10. > :54:18.to fulfil its obligations in euros, and that creates a deficit.

:54:19. > :54:25.So we cannot close the budget here with red figures.

:54:26. > :54:32.The Commission now calculates the deficit as 1.8 billion euros.

:54:33. > :54:36.And there are three possibilities to cover that, and none of them

:54:37. > :54:41.First, ask the British for more money.

:54:42. > :54:43.Second, ask the other member states to cover

:54:44. > :54:54.And third, let's find money in the European budget.

:54:55. > :54:58.We have some time to go until the end of the year,

:54:59. > :55:01.so maybe the British, the pound sterling recovers

:55:02. > :55:04.a little bit, maybe there is more finance coming in.

:55:05. > :55:09.But it would cover today about two thirds of it.

:55:10. > :55:11.I could imagine some sort of burden sharing between the UK

:55:12. > :55:22.Britain will leave the EU in just over two years' time, and take

:55:23. > :55:31.Well, it will go along with the renegotiation

:55:32. > :55:37.And that will mean that all what the EU is giving money

:55:38. > :55:44.for is renegotiated, every contribution is renegotiated,

:55:45. > :55:47.in terms of paying and in terms of getting the money.

:55:48. > :55:53.So it would be a perfect possibility to just recalculate what does

:55:54. > :55:58.the European member states want from the EU, how much money

:55:59. > :56:01.they are ready to give, and how would be the burden sharing

:56:02. > :56:10.So my feeling is it might be a little bit more for some,

:56:11. > :56:20.So it could mean a major overhaul, essentially?

:56:21. > :56:24.So Britain's leaving the EU will have a major impact

:56:25. > :56:41.No, not so much, don't take it so serious!

:56:42. > :56:50.Seb Dance laid out some possible scenarios. Ask Britain for more

:56:51. > :56:54.money, get the EU nations to cover, or take money out of the EU budget.

:56:55. > :56:57.What do you think it should be? It remains to be seen what collectively

:56:58. > :57:03.will be seen as the best of those three options. What do you think?

:57:04. > :57:06.Nobody wants to pay in more money. In the European Parliament, we voted

:57:07. > :57:10.not to increase the budget because we don't believe that we should be

:57:11. > :57:14.paying more money in real terms into the budget at this point. But I mean

:57:15. > :57:18.obviously when we have a situation when the pound has lost so much in

:57:19. > :57:23.its value internationally, you know, there is a lot of currency

:57:24. > :57:28.volatility around. When that exchange rate is set, it inevitably

:57:29. > :57:33.means that our contributions will go up if we just stick with the current

:57:34. > :57:37.contributions. And that obviously is a problem that Brexit has posed, the

:57:38. > :57:42.level of volatility is such that we can't be sure about what our

:57:43. > :57:45.contributions will be. Patrick, on a point of principle, should the UK

:57:46. > :57:49.rather than EU member states make up the rest was brought no, of course

:57:50. > :58:00.it, some of this budget should be brought back. SAP says his -- Seb

:58:01. > :58:04.Dance says his group voted not the increases, we voted for cuts,

:58:05. > :58:07.cutting the salaries, allowances and travel expenses of MEPs which Mr

:58:08. > :58:14.Schultz ruled out of order. There are so many useless things. Youth

:58:15. > :58:18.clubs in Azerbaijan, combating hate speech in the Middle East. This is a

:58:19. > :58:24.bloated organisation that cannot pay its bills. If you blame others for

:58:25. > :58:28.their spending priorities, Howard and earth do you shift the focus on

:58:29. > :58:32.them to choose one of those options which is to get us to pay more?

:58:33. > :58:35.Ultimately they are not going to share the burden if we treat the

:58:36. > :58:39.European Union in the way that you are suggesting. I mean, you have to

:58:40. > :58:43.work constructively with partners, you have to work as an engaged

:58:44. > :58:49.partner in a Single Market, as you will remember, as we still are, of

:58:50. > :58:56.course. It would seem as an obvious point that if we want their goodwill

:58:57. > :58:58.in the forthcoming negotiations, simply criticising them for their

:58:59. > :59:03.current spending allocations is not going to... We pay more at every

:59:04. > :59:07.turn. We pay 1.8 million bought just because of our economy. Thank

:59:08. > :59:08.goodness we're leaving stop my final word from Patrick O'Flynn. Thank you

:59:09. > :59:14.very much indeed.