25/10/2012

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:00:13. > :00:16.is not much governments can do about it. Good evening.

:00:17. > :00:20.He refers himself to an investigation as to whether he

:00:21. > :00:25.broke the ministerial code if conduct, and still the insults fly,

:00:25. > :00:29.but will there be any lasting damage to brand SNP?

:00:29. > :00:32.And more revelations of what the company that ran Rangers' in

:00:32. > :00:36.administration knew about the controversial deal but financed

:00:36. > :00:39.Craig Whyte's takeover of the Ibrox club. First, they lost their anti-

:00:39. > :00:42.Nato policy. Then they lost two backbench MSPs. And after two days

:00:42. > :00:46.of truly awful headlines, the SNP must have wondered if they were

:00:46. > :00:49.also about to lose the trust of the voters. The row over whether Alex

:00:49. > :00:52.Salmond had obtained legal advice about EU membership exposed the

:00:52. > :00:54.First Minister to unrelenting personal attacks - he is a bare-

:00:54. > :01:04.faced liar, as straight as a corkscrew, as honest as Richard

:01:04. > :01:14.

:01:14. > :01:19.Nixon. So what damage, if any, have such attacks done to brand SNP?

:01:19. > :01:27.Arriving at Holyrood, I appeared unfazed by the week's events and

:01:27. > :01:31.ready to ride out any further turbulence. Having lost two MSPs

:01:31. > :01:35.over an independent Scotland's stance on NATO, he knew a storm was

:01:35. > :01:40.brewing over whether his government had sought legal advice about

:01:40. > :01:43.Scotland's future in Europe. I would like to ask the First

:01:43. > :01:47.Minister a familiar question about whether a separate Scotland would

:01:47. > :01:51.be a member of the EU. It is a question Andrew Neil asked him on

:01:51. > :01:57.4th March. Have you sought advice from your own Scottish law officers

:01:57. > :02:03.in this matter? Starting his answer with the words "we have, yes", but

:02:03. > :02:08.the First Minister please get to "no, we haven't" in 27 words?

:02:08. > :02:12.First Minister was ready and waiting with the answer. He had it

:02:12. > :02:15.sorted. An independent panel is to investigate if he broke the

:02:15. > :02:20.ministerial code of conduct. finding of the independent advisers

:02:20. > :02:25.will be made public. I will accept, and I hope members of the chamber

:02:25. > :02:31.will do the same. I would observe that there have been five

:02:31. > :02:35.references since I have been First Minister. Each one has found in

:02:35. > :02:39.favour that the ministerial code has been abided by. I hope on this

:02:39. > :02:44.6th occasion, given that I have said I will accept the findings,

:02:44. > :02:48.that the opposition parties will find themselves able to do the same.

:02:48. > :02:53.We in minutes, the insults were being hurled across the debating

:02:53. > :02:59.chamber. I suppose you can't expect a straight answer from a First

:02:59. > :03:03.Minister who is as straight as a corkscrew. After five years in

:03:03. > :03:12.office, was our First Minister no more trustworthy than the nation's

:03:12. > :03:17.best-loved wide-boy? Or do. We have had more Beckingham diving and Del

:03:17. > :03:23.Boy from this man. -- more ducking and diving than Del Boy from this

:03:23. > :03:27.man. Every fair-minded person has reached the conclusion that he

:03:27. > :03:30.misled his country into believing his case that Scotland's case for

:03:30. > :03:35.Europe was based on proper legal advice. Alex Salmond has always

:03:35. > :03:39.punched above his weight in media terms for. Named politician of the

:03:39. > :03:46.year last year by both the Spectator magazine and the Herald.

:03:46. > :03:50.A former MSP strategist says this storm will soon pass. We are seeing

:03:50. > :03:57.an extremely into private debate, with a lot of abuse being thrown

:03:57. > :04:02.around -- it is an intemperate debate with a lot of noise going on.

:04:02. > :04:06.But if you look at surveys consistently over the years, for

:04:06. > :04:10.example, the Social attitudes survey, they showed a great deal of

:04:10. > :04:15.trust in the Scottish government. These are deep-seated feelings, so

:04:15. > :04:18.the fact that it has been a difficult week and the fact that

:04:18. > :04:21.Alex Salmond has been abused roundly by his opponents, I would

:04:21. > :04:27.not have thought that that will suddenly negate the build-up of

:04:27. > :04:30.trust that was evident in the last Scottish Parliament elections. The

:04:30. > :04:35.pair is has revelled in an opportunity to give the First

:04:35. > :04:39.Minister a doing. So have the headline writers got a point? Is

:04:39. > :04:45.the Sam and brand tarnished irreparably, or will the sheen soon

:04:45. > :04:50.be back? The SNP brand has been very much shaped around the cult of

:04:50. > :04:55.Alex Salmond. He has done a fantastic job, but now he needs to

:04:55. > :05:01.accept that he should delegate responsibility and some of the

:05:02. > :05:05.front of house responsibility. When it becomes so closely defined by a

:05:05. > :05:09.single individual, you will suffer if that person has a bad week in

:05:09. > :05:14.the office. Look at the Republicans in the States. When Romney had a

:05:14. > :05:22.bad week in the office, his whole party suffers and the media turns

:05:22. > :05:25.against him. There is no doubt it has not been his easiest week, but

:05:25. > :05:33.Alex Salmond would probably say being called a corkscrew is not the

:05:33. > :05:37.worst blow he has had to fend off. Will it proved to be a watershed

:05:37. > :05:41.moment, or did no one emerged from today's about having landed a

:05:41. > :05:43.killer blow? I am joined now by David Torrance,

:05:43. > :05:51.Alex Salmond's biographer, who is in London tonight, and from

:05:51. > :05:59.Edinburgh by Iain MacWhirter of the Herald. Iain MacWhirter, you get

:05:59. > :06:03.the award for instant cliche. He described it as a Norman Ebor. It

:06:03. > :06:07.was certainly shaping up that way. This is the best opportunity the

:06:07. > :06:13.opposition has had, I would say, since Alex Salmond has been in

:06:13. > :06:21.office. We had this very potentially dangerous coincidence

:06:21. > :06:24.of episodes this week of resignations and the disclosure of

:06:24. > :06:31.the results of the consultation on the referendum question. And then

:06:31. > :06:36.of course we had this omnishambles over the unit advice. But you have

:06:36. > :06:40.to hand it to Alex Salmond. He slipped away very effectively. He

:06:40. > :06:44.deployed the oldest device in the book, an independent panel, which

:06:44. > :06:48.will inevitably conclude that he has not broken the ministerial code.

:06:48. > :06:55.That was not the issue. He was not disclosing anything, because there

:06:55. > :06:57.was nothing to disclose. The whole scandal was the way they had taken

:06:57. > :07:01.the information commissioner to court to prevent the disclosure of

:07:01. > :07:06.the fact that the Government knew nothing. The David Torrance, do you

:07:06. > :07:11.agree that he will inevitably be acquitted by the three eminent

:07:11. > :07:15.personages who look into this? the ministerial code inquiry is a

:07:15. > :07:19.red herring. I don't remember anyone having a go at him for

:07:19. > :07:25.breaking the ministerial code. It is a device he has deployed before,

:07:25. > :07:29.and he will come up trumps. The problem Alex Salmond and the SNP

:07:29. > :07:33.have his and the longer term. Labour have an obvious strategy of

:07:33. > :07:37.depicting Alex Salmond as a liar, a word that even his political

:07:37. > :07:43.opponents don't use lightly. They are hoping to cement this

:07:43. > :07:47.impression in the minds of voters. But that only works if it is

:07:47. > :07:52.fuelled by other examples over the weeks and months ahead, where it

:07:52. > :07:57.looks like I is being less than straightforward. At the moment, I

:07:57. > :08:01.don't see it holding. We had lots of phoney away from Labour and the

:08:01. > :08:05.Conservatives today, but for that to resonate with voters, it has to

:08:05. > :08:09.reflect what they are thinking. This is not an easy to understand

:08:09. > :08:13.row, crucially. Andrew Mitchell having a go at police officers on

:08:13. > :08:17.Downing Street was something everyone could understand and

:08:17. > :08:24.everyone understood it was wrong, and thus he resigned. This is about

:08:24. > :08:29.legal advice and the European Union. I'd barely keep track of it.

:08:29. > :08:33.that a good point, Iain MacWhirter? The Scotsman and the Herald are not

:08:34. > :08:38.leading on this tomorrow. There is a side bar at the top of the

:08:38. > :08:44.Scotsman. I presume if you are I, you actually want to see nothing

:08:44. > :08:49.about yourself on the front page? Absolutely. That is an indication

:08:49. > :08:53.that they have killed the story. It is interesting to see the way they

:08:53. > :09:00.did it. Alex Salmond is very good at batting away criticism. Labour

:09:00. > :09:06.made the fatal mistake by saying he was a bare-faced liar, when they

:09:07. > :09:10.can't really justify that. Then he had this device of the panel.

:09:10. > :09:16.Nicola Sturgeon worked effectively here as well by effectively

:09:16. > :09:19.apologising on his behalf this morning on the radio. She said it

:09:19. > :09:25.was unfortunate that this impression had got out but they had

:09:26. > :09:31.legal advice when they didn't. She managed to deflect that criticism.

:09:31. > :09:36.I do not think the branch is at issue. Curiously, there has always

:09:36. > :09:40.been a slight cancer element in Alex Salmond's brand, and that is

:09:40. > :09:46.partly why people like him -- he has a Chancellor element. There is

:09:46. > :09:56.an edgy way to the manner in which he can do its political affairs. It

:09:56. > :09:59.

:09:59. > :10:04.De you agree with that, David Torrance? Is his slipperiness and

:10:04. > :10:10.asset? And not necessarily that but it is expected of him and I think

:10:10. > :10:14.that a lot of Scots quite like it. Look at his approval ratings.

:10:14. > :10:18.Astonishingly high especially when set against the UK party leaders in

:10:18. > :10:23.Scotland, it has been slightly slipping of late but it is still

:10:23. > :10:26.strong. And when politicians are popular - and let's face it, not

:10:26. > :10:31.many are genuinely popular - voters are inclined to give them the

:10:31. > :10:36.benefit of the doubt so even if it looks like Alex Salmond has not

:10:36. > :10:39.been entirely straight forward on this matter, and especially when

:10:39. > :10:44.voters cannot follow what is going on, it is complicated, they will

:10:44. > :10:49.give him the benefit of the doubt and moved on quickly. I remember a

:10:49. > :10:53.similar period towards the end of 2010 when the Scottish Parliament

:10:53. > :10:58.have lost its tax-raising powers and other things and it was written

:10:58. > :11:02.off as the SNP's worst week and it was forgotten within a few weeks.

:11:03. > :11:06.And a few months later, they won an overall majority. And Iain

:11:06. > :11:16.Macwhirter, do you think we have seen a template for what feels see

:11:16. > :11:24.in the next two years? Absolutely. -- for what we will see in the next

:11:24. > :11:28.two years. He is always basically, what he is saying about

:11:28. > :11:33.independence does not stand up and that he is vulnerable on that but I

:11:33. > :11:37.think this is an interesting moment in the history of this are very

:11:37. > :11:41.successful SNP administration. This week we are beginning to see the

:11:41. > :11:46.SNP becoming vulnerable to the kinds of mid- term pressures that

:11:46. > :11:56.affect all governments which have been in power long time and that is

:11:56. > :11:58.

:11:58. > :12:03.an important moment. The BBC has obtained evidence that Craig Whyte

:12:03. > :12:10.misled HMRC. The recording of a conversation between David Greir

:12:10. > :12:20.and that Mr Whyte shows Mr David Greir to release a misleading

:12:20. > :12:20.

:12:20. > :13:32.Apology for the loss of subtitles for 71 seconds

:13:32. > :13:35.statement by a Craig Whyte. This is Mark Daly is the BBC's

:13:35. > :13:41.investigation team member who got the recording. They had been

:13:41. > :13:46.recording, what happened next? next day, this e-mail arrived in to

:13:46. > :13:50.Craig Whyte's in box from a hot my account purporting to belong to a

:13:50. > :13:59.Ted Smith. This statement is unsurprising my supportive of the

:13:59. > :14:03.job that Duff and Phelps were doing as administrators but nobody had

:14:03. > :14:09.knowledge of the fall arrangements at the time of the acquisition of

:14:09. > :14:13.the club but we now know that not to be true and Whyte never did

:14:13. > :14:16.agree to make this statement and the e-mail were hidden away for a

:14:17. > :14:26.rainy day at. So that press release was never issued? But was never

:14:27. > :14:28.

:14:28. > :14:31.made. Is this not a rather odd situation in a legal case?

:14:31. > :14:41.might remember that Duff and Phelps had already instituted legal

:14:41. > :14:46.

:14:46. > :14:52.proceedings against the London legal firm, Collyer Bristow. Team

:14:52. > :15:02.at Duff and Phelps on the left there, Paul Clark, David White

:15:02. > :15:03.

:15:03. > :15:07.House alongside David David Greir, they want �25 million from Collyer

:15:07. > :15:10.Bristow and they say that the deal was being quietly funded by ticket

:15:10. > :15:16.money and that that deal effectively blocked any

:15:16. > :15:19.consideration of a rival bid which might have netted the club's

:15:20. > :15:25.creditors �25 million. That is where it gets interesting because

:15:25. > :15:29.now, Collyer Bristow are preparing an action which means that if

:15:29. > :15:33.successful, David Greir, the man we heard on the tape will be

:15:33. > :15:37.transferred to the other side and become a defendant alongside

:15:37. > :15:43.Collyer Bristow because they believe that he was just as

:15:43. > :15:48.culpable for the catastrophic deal to buy ranges in as much as that he

:15:48. > :15:53.knew that cricketers were funding the takeover. If successful, it

:15:53. > :15:58.would result in a preposterous an area -- knew that ticket holders

:15:58. > :16:03.were funding. Duff and Phelps brought the action in the first

:16:03. > :16:08.place, but would be being bought out. Duff and Phelps taking action

:16:08. > :16:13.for money against a lawyer on with dependent on the other side who

:16:13. > :16:18.would be one of the senior partners of the company taking senior action.

:16:18. > :16:22.They would like to bring David Greir as a co-defendant in this

:16:22. > :16:28.action and if successful, David Greir or Duff and Phelps would end

:16:28. > :16:31.up paying out in the end. What do Duff and Phelps say? The release a

:16:32. > :16:35.short statement almost identical to the statement they released last

:16:35. > :16:39.night saying that Duff and Phelps pertains that our conduct was

:16:39. > :16:44.carried out to the highest professional standards. They do not

:16:44. > :16:51.respond to information taken out of context and we believe that is the

:16:51. > :16:56.case in the BBC stories. As we have said previously, were built, the --

:16:56. > :17:02.as was said previously we welcome a look at these comments. Starting

:17:02. > :17:12.with The Scotsman on the front pages, that a boy, 14, punched

:17:12. > :17:12.

:17:12. > :17:18.other people to death in class. The Herald, foreign killers on the

:17:18. > :17:23.loose and police demand action and the Financial Times leads with the