:00:13. > :00:18.can I have done things differently? What can we have done differently?
:00:18. > :00:24.On Newsnight Scotland, as the parliamentary inquiry into the
:00:24. > :00:29.latest banking inquiry -- scandal is announced, does it go far
:00:29. > :00:33.enough? And the changing role of charities,
:00:33. > :00:38.how the voluntary sector says it will pick up the slack left by
:00:38. > :00:42.public sector cuts. Politicians agree there should be
:00:42. > :00:51.an inquiry into the banking system, it is just what form that inquiry
:00:51. > :00:53.should take up their Robert Quick seeing eye to eye on. Today the
:00:53. > :00:56.finance secretary John Swinney added his calls for a full
:00:56. > :01:04.independent investigation as to who knew what and when in the rate
:01:04. > :01:09.rigging scandal. In a moment we will be speaking to Mr Swinney.
:01:09. > :01:12.Since the crisis in front -- 2008, public trust has been shattered in
:01:12. > :01:20.the banks. The bail-out of the Royal Bank of Scotland, HBOS and
:01:20. > :01:24.Lloyds TSB cost the taxpayer �36 billion. In exchange, the banks
:01:24. > :01:32.were supposed to clean up act. But there are still revelations coming
:01:32. > :01:37.thick and fast of a culture that has grown up. Barclays is that make
:01:37. > :01:44.-- latest bank been drawn into the scandal, with the manipulation of
:01:44. > :01:49.interest rates. We propose that. propose that Parliament do at --
:01:49. > :01:51.form an inquiry into banking industries. It will have a joint
:01:51. > :01:57.committee drawn from the Commons and the Lord, chaired by the chair
:01:57. > :02:02.of the Treasury Select Committee. He and his committee have been
:02:02. > :02:06.quicker off the mark in investigating the issue, and we
:02:06. > :02:10.want their hearings to proceed. Labour says politicians
:02:10. > :02:15.investigating bankers will not win the public background. The Treasury
:02:15. > :02:18.Select Committee tried this in 2009. Labour says only an independent
:02:18. > :02:25.inquiry overseen by a judge, like Lord Leveson is doing into the
:02:25. > :02:29.media, will do. We will vote for an independent and open public inquiry,
:02:29. > :02:35.not an inadequate and weak plant cobble together over the course of
:02:35. > :02:40.this morning. The independent inquiry is what our constituents
:02:40. > :02:45.want, and it is the only way to achieve a lasting consensus on
:02:45. > :02:50.reforms for the future. Speaking to Children's BBC, the Deputy Prime
:02:50. > :02:53.Minister said. Banks used to be the jewel in the crown of a country,
:02:53. > :02:56.and now they are a source of embarrassment and shame and people
:02:56. > :03:00.need to take responsibility for the things that went wrong because they
:03:00. > :03:06.went horribly wrong. As for the interest rate affair, the bankers
:03:06. > :03:10.may not get out of jail free at all. Barclays may have been fined �290
:03:10. > :03:14.million so far, lost their chairman and chief executive will appear
:03:14. > :03:16.before the Treasury Select Committee on Wednesday, but a
:03:16. > :03:20.statement on the serious Fraud Office says the issues are complex
:03:20. > :03:25.and added it is considering whether it is both appropriate and possible
:03:25. > :03:29.to bring criminal prosecutions. For Scotland, the financial sector is
:03:29. > :03:33.hugely important. Today the finance secretary called for a full and
:03:33. > :03:38.immediate independent inquiry into a banking malpractice, and its
:03:38. > :03:44.impact on consumers and businesses. Unless the industry can regain
:03:44. > :03:50.public trust, who knows where all this will aimed?
:03:50. > :03:54.John Swinney, the finance secretary, is live in Dundee. To start with
:03:54. > :03:59.the inquiry, is that as for an independent as you would like?
:03:59. > :04:04.is a welcome step, but it is not nearly as much as is required in
:04:04. > :04:08.the current circumstances. I think what we have seen in the Leveson
:04:08. > :04:13.style inquiry is an ability without fear of favour to get to the nub of
:04:13. > :04:19.issues that have been concerning members of the public about their
:04:19. > :04:23.his relationships around the media and the collection with politics. -
:04:23. > :04:27.- connection with politics. What we need is the level of public concern,
:04:27. > :04:31.it has been very strong around the banking sector but it has reached a
:04:31. > :04:37.new height of the course of the last few days with the Barclay's
:04:37. > :04:41.issues and the interest-rate fixing. We must have a very full and
:04:41. > :04:46.independent public inquiry that can scrutinise all of the issues
:04:46. > :04:50.involved here. Politicians need to be in front of an independent
:04:50. > :04:54.enquiry answering for the failure that they exercised over the
:04:54. > :04:58.regulation of the banks in 2008 and other stages, and principal amongst
:04:58. > :05:03.those must be the former Chancellor Alistair Darling. That was a time
:05:03. > :05:09.when you and your colleagues in the SNP were calling for a light touch
:05:09. > :05:14.regulation, and criticising the UK government for gold plating. What
:05:14. > :05:17.we were calling for was appropriate regulation which guaranteed the
:05:17. > :05:22.solidity and security of the financial sector. What was not been
:05:22. > :05:26.delivered by the regulatory regime that has been presided over by
:05:26. > :05:31.Alistair Darling and Gordon Brown was precisely that. Which you make
:05:31. > :05:34.no criticism of prior to the banking crisis. What we find now is
:05:34. > :05:38.people have got to be held to account for the issues they were
:05:38. > :05:43.presiding over when they were in office, when they had access to
:05:43. > :05:46.information and briefings. As an opposition politician at the time,
:05:46. > :05:51.would you put your hands up and accept you got it wrong as well?
:05:51. > :05:56.Lots of people have lots to learn about the approach and relation to
:05:56. > :06:00.the much as services, but what is an important starting point is
:06:00. > :06:03.holding to an account people like Alastair Darling and Gordon Brown
:06:03. > :06:06.who presided over this fiasco of regulation in the financial
:06:06. > :06:11.services sector and did not deliver the protection that members of the
:06:11. > :06:14.public would expect. That is why an independent inquiry is essential to
:06:14. > :06:22.provide the necessary weight and scrutiny to get the bottom of bad
:06:22. > :06:28.vamp -- failure. Will the SNP MPs at Westminster join Labour in
:06:28. > :06:32.voting to block the parliamentary inquiry that is being proposed?
:06:32. > :06:34.approach taken by my colleagues in the House of Commons will be set
:06:34. > :06:39.out in the cause of the parliamentary scrutiny of these
:06:39. > :06:42.issues. You do not know whether they support the inquiry or not?
:06:42. > :06:51.What we have said clearly is we believe there should be at fault,
:06:51. > :06:54.public independent inquiry into the process. To begin the process of
:06:54. > :06:59.rebuilding public confidence... Would you like there to be
:06:59. > :07:04.prosecutions? There should be prosecutions if a criminal, if
:07:04. > :07:08.there is a basis for those prosecutions to take their course.
:07:08. > :07:13.We have made it quite clear in Scotland if there are any issues
:07:13. > :07:17.that the crown of is invested, that is what should be done. The same
:07:17. > :07:24.applies to the Serious Fraud Office, and any scrutiny that is required
:07:24. > :07:28.to establish if criminal acts have taken place, and there should be
:07:28. > :07:35.criminal prosecution, is an essential foundation of building
:07:35. > :07:37.public, since -- confidence in the regulatory system and rebuild
:07:37. > :07:42.confidence in the banking sector which has taken a shattering blow
:07:42. > :07:47.as a consequence of the last few days. The Serious Fraud Office is
:07:47. > :07:55.considering its position. Two you know if the economic crime office
:07:55. > :07:59.in the Crown Office for Fine Scottish police are looking at
:07:59. > :08:03.launching an inquiry? The Crown Office will explore any issues that
:08:03. > :08:06.have to be assessed, they will act independently of ministers,
:08:06. > :08:10.responsible to the lord advocate. It is appropriate that
:08:10. > :08:14.investigations are taken forward on that basis by the Crown Office.
:08:14. > :08:17.there any at the moment? I am certain that the Crown Office will
:08:17. > :08:23.be exploring any issues that are relevant to be explored in relation
:08:23. > :08:26.to the possibility that criminal conduct has been undertaken in this
:08:26. > :08:31.respect. That is an essential part of rebuilding public confidence in
:08:31. > :08:35.the banking sector which has been to a devastated by the events of
:08:35. > :08:39.the last few days. Do you agree with Nick Clegg that our banks,
:08:39. > :08:43.including Scottish based banks, that -- are a source of
:08:43. > :08:47.embarrassment and shame? We have got to be careful with the language
:08:47. > :08:51.that he has used. There have been significant mistakes made in the
:08:51. > :08:58.banking sector over the last number of years, many of those issues have
:08:58. > :09:03.been confronted in the course of the events, as 2008, particularly
:09:03. > :09:07.in relation to RBS and HBOS. The particular examples that have taken
:09:07. > :09:11.place in relation to Barclays and the interest rates Council of of a
:09:11. > :09:19.different order. -- the interest rate scandal are of a different
:09:19. > :09:22.order. These are not just mistakes that had been made, these are
:09:22. > :09:27.malicious and calculated act to try and deceive the market and deceive
:09:27. > :09:32.the public. With consequences for the public. If you are so concerned
:09:32. > :09:35.about... In those circumstances, those different -- issues are or a
:09:36. > :09:39.different order and must be treated differently. If you are so worried
:09:39. > :09:43.about these issues and the inability of the current system to
:09:43. > :09:48.properly regulate our banks, why are you and your colleagues in the
:09:48. > :09:53.SNP proposing to keep a UK-wide system of regulation if Scots vote
:09:53. > :09:59.for independence? We are not voting or ordering for the current state
:09:59. > :10:02.of play. What we are arguing for is an appropriate regulatory
:10:02. > :10:05.environment for the interests of Scotland, that is why we have
:10:05. > :10:10.established the Fiscal Commission which is led by some eminent
:10:10. > :10:13.economists and advisers to provide exactly the appropriate
:10:13. > :10:19.circumstances and regime of the regulation of the financial-
:10:19. > :10:22.services sector in Scotland. What we will do is take time in the cold
:10:23. > :10:28.light of day to explore what the best result for Scotland is. So it
:10:28. > :10:31.might be different from the rest of the UK? What the events of the lot
:10:31. > :10:34.today tell us quite clearly is we have got to get those regulatory
:10:34. > :10:39.regimes correct, in the interest of the people of Scotland, and that is
:10:39. > :10:42.what the Fiscal Commission in Scotstoun will do.
:10:42. > :10:46.Charities say they are facing growing pressure to fill the gap
:10:46. > :10:50.left by cuts in the public sector. Around three-quarters are reporting
:10:50. > :10:56.a rise in demand for the services while at the same time reporting a
:10:56. > :11:04.tougher struggle to -- get funding. We have been talking to one family
:11:04. > :11:08.and one fundraiser. You are cheeky! Two year-old Harry
:11:08. > :11:14.suffers from a severe form of epilepsy. The seizures can come at
:11:14. > :11:21.any time of the day or night. But Harry's parents can now sleep more
:11:21. > :11:25.easily thanks to a special sensor in Harry's bed. This is the centre,
:11:26. > :11:29.there are two of them which were placed under the mattress. If there
:11:29. > :11:34.is a certain amount of movement, an alarm alerts his parents.
:11:34. > :11:41.benefit because we are able to get a good night's sleep, and it is
:11:41. > :11:47.also beneficial to Harry because it detect a seizure, and the alarm
:11:47. > :11:51.goes off, we are able to get to him. If we did not have that, there are
:11:51. > :11:56.seizures that we do not catch which could be fatal. These sensors have
:11:56. > :12:01.given Harry's mum and dad peace of mind but they have not been paid
:12:01. > :12:08.for by the health-service, but by a charity. A charity which has raised
:12:08. > :12:13.millions. This is a photograph of Muir. Founder Ann Maxwell's Sun
:12:13. > :12:18.Muir has the same condition as Harry. We have some way towards �8
:12:18. > :12:23.million we have raced, I do not keep a running total amount every
:12:23. > :12:26.event adds more. We have funds from a variety of sources. Many
:12:26. > :12:30.charities are facing a twin challenge. It is getting harder to
:12:30. > :12:34.raise money while the demands for their services are rising. More
:12:34. > :12:42.than three-quarters of Third Sector organisations expect the demands
:12:42. > :12:45.placed on them to increase in the next 12 months, but nearly one 5th
:12:45. > :12:50.expects staff among them -- numbers to fall. The state of the economy
:12:50. > :12:55.has made fund-raising even more difficult. 62% of smaller charities
:12:55. > :13:02.saw their income drop between 2009 and 10, while 40% spend more than
:13:02. > :13:06.they received. Even Ann Maxwell has found fund-raising harder.
:13:06. > :13:10.probably work two or three times as hard to achieve the same as vote.
:13:10. > :13:17.The answer is to keep your head down, keep working hard, and keep
:13:17. > :13:21.your eye on the course. In Scotland we do not hear much about the Big
:13:21. > :13:25.Society but there is an ongoing debate about just what role
:13:25. > :13:31.charities and volunteers should play, complementing services funded
:13:31. > :13:34.by the taxpayer. For there has been an indication in writing from the
:13:34. > :13:38.Government that the NHS would like to step in and help us provide a
:13:38. > :13:47.lot, but the funding realistically is not available in the short-term.
:13:47. > :13:51.It would be my dream come true that we become redundant on this one.
:13:51. > :13:56.Ann Maxwell's story may be described as inspirational by some,
:13:56. > :14:00.and her work has helped many children like Harry. But the
:14:00. > :14:03.charity -- the problems facing many charities are intense.
:14:03. > :14:05.Her Martin Sime is the chief executive of the Scottish Council
:14:05. > :14:15.for Voluntary Organisations, the National body for Scotland
:14:15. > :14:19.charities. Is part of the problem that charities have become too
:14:19. > :14:22.large to an extent and delivery arm of the state? There is all kinds of
:14:22. > :14:28.different wishes between charities and government and local government
:14:28. > :14:31.and the health staff -- service. All sorts of relationships.
:14:31. > :14:36.Charities add value in a number of different ways, sometimes they get
:14:36. > :14:40.100% funded for that and sometimes they get no funding whatsoever.
:14:40. > :14:43.There are many points in between. As your film showed, there are many
:14:43. > :14:49.brilliant project and great ideas that charities are doing and most
:14:49. > :14:54.charities are struggling at the moment. Is at least some of that
:14:54. > :14:59.work, can it be considered as the icing of the cake, the sort of
:15:00. > :15:04.service that we can afford in good times, or is it all essential?
:15:04. > :15:07.depends who you are and the issues that motivate you. The great thing
:15:08. > :15:11.about today's voluntary sector is it is done so many different things
:15:11. > :15:15.in different ways. It is motivated by people who want to make a
:15:15. > :15:22.difference to the society, there chimp -- their community, and to
:15:22. > :15:26.individuals so there are people doing fantastic work. Some of it
:15:26. > :15:29.receives support from the state and some of it receives support from
:15:29. > :15:32.the public. We need as much support as we can get right now because
:15:32. > :15:36.more people are turning to charities for help. Across the
:15:36. > :15:41.sector, how hard is it getting? is getting really hard. Just this
:15:41. > :15:45.year we have got to 60% increase in people seeking funding advice from
:15:46. > :15:51.us, but there is very little new money around. It is getting very
:15:51. > :15:55.competitive. Charities are struggling because there are more
:15:55. > :15:59.people needing help from charities, more unemployment and homelessness,
:15:59. > :16:04.more debt, our society is in trouble here because the economy is