27/11/2013 Newsnight Scotland


27/11/2013

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Has the White Paper raised more questions than it has answered? And

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where is the alternative blueprint? Good evening. It is the day after

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the big launch. The dust has settled, the media crews have

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decamped from Holyrood and the truly dedicated have been trawling through

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the small print of White Paper. So, on Newsnight Scotland this evening,

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we're giving you a special offer. You're getting three for the price

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of one. Gordon, Glenn and I will be asking the questions you want the

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answers to. And, on the spot, please welcome the Scottish Finance

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Minister, John Swinney, and the Scottish Labour Leader, Johann

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Lamont. Jackie has the first question.

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We have this. Where is your 670-page tome chocked full of ideas and

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vision? This document is two separate things. It claims to be the

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prospectus to get as an independent Scotland but also says what the SNP

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would do in power. That is a manifesto. I think what we do need

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to focus on is the big decision that people in Scotland had to make next

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year. Are we better together and stronger as United Kingdom and what

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are the benefits of separating off? This document does not answer some

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of the fundamental questions. For about a year now, every time I

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talked to SNP politicians and they get stuck with something, they say,

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wait for the White Paper. It has become apparent that, within a day,

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all the answers are not there but in a whole series of questions, not

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just currency but energy and the rest of it, the answers cannot be

:02:17.:02:20.

there because they depend on the goodwill of others. Your immediate

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ambition with the White Paper has failed, hasn't it? We wanted to set

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out the mechanics and process by which Scotland would become an

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independent country. We have set that out in comprehensive detail. Of

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equal importance, what we were aiming to do with this white paper

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was to give people a picture of what we could do with the powers of

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independence to make Scotland more prosperous and fairer. What the

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document is crammed full of is ideas of how we can use the powers and

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responsibilities of independence to make Scotland a truly successful

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society. That is what we look forward to debating in the next few

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months. The paper does not tell us how we will get independence. It

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does not give certainty that you claimed. You are trying to change

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the referendum into some kind of election, that appears under

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costed. They are things we would be looking at in an election period

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anyway. We go through all the difficult issues, setting out, as

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far as we possibly can do, in the absence of negotiations with the

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United Kingdom government, about how we can resolve and give clarity

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about some of these issues. It assures us we are going to still be

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Scotland and the weights and measures will be the same. Despite

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the fact we have argued that the currency would be the pound, we know

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perfectly well it is not your gift to make that happen. We are going to

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break this into bite sized chunks. Let's start with one of the issues -

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the issue of EU membership. That is a developing story tonight with an

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intervention from the Prime Minister of Spain. He said it would need to

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be approved by all 28 member states. What we have set out in the document

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is the process and manner by which Scotland would move to being within

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the European Union as an independent state. We have set that out under

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the principle of continuity effects which should enable us to argue for

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an amendment to the treaty. You accept that such an amendment would

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need to be approved by parliament is in all 28 member states. Used to say

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it was automatic. Various the requirement for that treaty

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amendment to be agreed by all the member states. What would be the

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dynamics and circumstances of that? Scotland is already a participant in

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the European Union. What we are arguing for is the ability to move

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from the status of membership as part of the United Kingdom to being

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a member state in our own right. Surely if you accept... Scotland is

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currently a member of the European Union. We are not an aspiring or

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membership applicant. We are in the European Union by virtue of the

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United Kingdom. Our citizens are from the European Union. It is said

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that if part of a member state becomes independent, it would

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cannot be the case. We are members of the European Union. As you have

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just said, when Scotland votes for independence in the yes vote in

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September 2014, we still remain in the European Union and independence

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does not happen until 2016. We are doing this from within the European

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Union as part of our mothership of the European Union. This is not a

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commentator. -- our membership. I presume you have to contemplate the

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possibility that somebody might disagree, otherwise it is automatic.

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These are separate things. In my be self interest of each individual

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country but that is for them to decide whether it is in the

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interests or not. Let's explain the reasons why Scotland should be able

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to sustain that. There is a fundamental problem. What you are

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now telling us is that when it comes to Scotland's entry in the European

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Union, we should not believe the Prime Minister of Spain, we should

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not believe the president of the European Union. Just as we should

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not believe George Osborne, the Chancellor of the Exchequer about

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currency or David Cameron. They were engaging in political gesturing. For

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people who are confused trying to make up their minds, is there anyone

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they should not believe who is not a member of the SNP Cabinet? The

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rational reasons why Scotland should be able to sustain membership of the

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European Union through the transition I have talked about is

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plain and simple. We have shared interests with the European Union.

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The European Union invites members in context expands, grows and tries

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to evolve. A rational explanation is not important. He has expressed no

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opinion about whether he would support or otherwise Scotland's

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membership of the European Union. We have acquired rights as a member of

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the European Union, which we have today, and under the principle of

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continuity effects, seek an amendment to the treaty and be able

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to sustain that membership. Your argument is automatic. We would hear

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one person suggesting he may not use the vote in that way. It is

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difficult to say rationally we might end up in such and such a place. You

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have said it is certain and there is no doubt about it. It would now

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appear that is assertion and not documented fact. We may well come

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back to the issue of Europe but let's go to one headline - a" use in

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free childcare. Would you agree with this? We're more than happy to work

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with the Scottish Government on this. Work with is one thing. Is it

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a policy as it stands? Will it make a difference? Can we afford it? What

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would you do to make that happen? It is self-evident and true. There are

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folk in work. There are grannies and grandads, more than any other part

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of the United Kingdom, to allow mums and dads to go out to work. If they

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were able to get childcare, they would work. One successful thing we

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did when we were in power was to put together childcare and people who

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wanted to work. The theory is fine. John Swinney said he was going to do

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that in 2007. I certainly recognise we can work together on that. It is

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not conditional on constitutional arrangements. You agree with it in

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principle. U2 something you said you would bring some of it in. -- it is

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something you said. Can we look forward to this kind of policy in

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the Labour Party manifesto? Psion macro it goes absolutely with the

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grain of my politics. People do need support of childcare. For people who

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are working and are paying a lot for childcare or using grannies and

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extended families to do that, this would make a difference to them. It

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is hard to make sure you have the funding to make that happen. I am

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more than happy to work with John on that. Eye-catching, headlining. Alex

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Salmond himself said, of everything that is in this tome, that is what

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he is most proud of. Who is eligible for free childcare? We are hoping

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that every child from the age of one, every child with have childcare

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provided. 140 hours per year, which would enable more and more women

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within the workplace to get back into the workplace and contribute.

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Would I have to pay it? That service would be provided by the state. What

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is interesting is that over the course of the last six years, we

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have improved and strengthen the amount of childcare that is

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available in Scotland. There were 412 hours. It has been put up to

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475. What joy in Scotland. There were 412 hours. It has been put up

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to 475. What Joanne Lamont is saying, it is about the increased

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taking place. With my discussions with the Labour Party, not once have

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they talked about childcare. What we have done today and what we did

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yesterday in the document is sent a very ambitious agenda as to how we

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can really engage a whole range of different people, particularly women

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into the Labour market. What if I decide to take advantage of it but I

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do not feel like going out to work? Is there anything to stop me doing

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that? Nothing. The clear incentive is to move the obstacle of the

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absence of childcare or the and affordability of childcare to enable

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people to go out into the labour market. If you need tax receipts to

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pay for it and if enough people say, thank you very much, I will take

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free childcare and go shopping, then it is not going to add up. Those who

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could benefit from it may be in work and paying tax but they have

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grannies or whoever managing the childcare. You would have to put the

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money in first. How would it all start otherwise? There is an issue

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also. I argued that what we should be doing is coming together to

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understand what is the demand for childcare. There is no nursery care.

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Those working mums, it is out of school care and holiday times. How

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do you manage premises and so on? My point is, I would not necessarily

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move to the whole ambition but it is not necessary to change the

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constitution of the country. The issue then comes down to

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affordability. Let's explore that issue. I am frequently involved in

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discussions where I have to balance the budget, I must provide the

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resources to meet all the costs of public services, and I get met with

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demands for extra public services, extra commitments from other

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political parties, including the Labour Party, with no idea as to

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where the money can come from. My point about where we have reached

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the issue of childcare is, if we want to deliver the type of

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transformative contribution of childcare, which will be a cost of

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something in excess of five to ?600 million, which we simply cannot find

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within the budget we have available today, we have to do use the levers

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and the opportunities of independence to do something about

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that. We have been clear about this in the White Paper. We would reduce

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the amount of expenditure that we spend on defence, we don't want

:15:38.:15:42.

weapons of mass destruction on the Clyde, we don't want to pay for

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them, and we want to devote the resources available for that to

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something much more productive in our economy, the provision of

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childcare in a passion I have set out. That is about getting our

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priorities right, and I hope that Joe Ham might accept that we use

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money wisely and effectively, but those purposes are not as a ball

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weapons of mass attraction. The money has been spent half a dozen

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times, but if it matters to the economy, it matters now. It is not

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just about tax receipts. What other priorities? Let me finish. If I am

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paying for a private nursery, and provision comes in to allow me to

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get access very small contributed their work contribute a rear mount,

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a better level of childcare, that will stimulate the economy now. We

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don't have to rid wait for tax receipts. My priority is, that will

:16:38.:16:44.

lose the answer. Pre-2011, it wasn't. In 2007 to 2011, he went to

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individual parties and asked, what do you need to get me to vote? You

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secure the votes of the Tory party, who said that an SNP budget was the

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next best thing. Why can't we do it supportively? Why can't you and I

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worked together? Why have you turned it into a dividing line between us,

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rather than looking at the budget together and saying, where are the

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places we can find this? I think there were simpler want to know

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where the money should be coming from to do that. Johann Lamont, on a

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related issue, you made what is now a famous speech a while back where

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you talked about how Scotland can be a something for nothing society.

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Which bits of John Swinney's policies do you think I something

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for nothing society? Where you targeting his policy on tuition

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fees, for example, or his policy of free bus passes, or free

:17:46.:17:49.

prescription charges? I think the point I was making was that there is

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literally not something for nothing. If you spend something in

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one place, you can't spend it elsewhere. Exact to the point John

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Swinney has made just now. We have a contradiction. But he has all the

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policies, so what is your objection two my point is, he has a balanced

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budget, slogan, a policy, but the ground is not happening. We have

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every bus pass, but no buses. We have free predictions, and people

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can't get access to them. So which are you suggesting should be

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abolished? We have free personal care, and eight or nine minute

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visits. What I at actually thought would happen, because I know John

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agrees with me, because you said it privately, he has commissioned a

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lease to reports, and Campbell Christie said the same thing. In

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tough times, broader shoulders to carry the hardest burden. What are

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these tough shoulders? John says in public what the tough choices are.

:18:46.:18:50.

You haven't said anything you would get rid of that he supports. You'll

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agree you can look actually or example, someone who is in work at

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60 years of age, should they have a bus pass? Washer we do to make these

:19:01.:19:05.

things affordable? Know I don't. He has said in private pensions may not

:19:06.:19:09.

be available. He commissioned a lease to reports. He commissioned at

:19:10.:19:16.

least two reports, in relation to what we should do. The whole

:19:17.:19:19.

question of the gap in public services, we will not allowed to

:19:20.:19:22.

implement or even have a debate where we had a consensus. Everybody

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knows the slogan on its own is not enough will stop vision without

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action is daydreaming. That is a real problem with us. We are ending

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in every place with a debate appear. It is easy for me to just debate

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slogans with John, but every week and my surgeries, people are worried

:19:38.:19:40.

about children with learning disabilities, elderly parents in

:19:41.:19:43.

care homes, and politics has to be about more than that. I genuinely

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know that John cares about these things as much as I do. Why can we

:19:48.:19:51.

have a mature debate about what our priorities are in terms of

:19:52.:19:54.

spending? Obviously, you have a shared interest in prioritising

:19:55.:20:02.

childcare. Just to be clear on that, if you support the proposals to

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expand childcare, do you also support the idea that John Swinney

:20:06.:20:11.

has equal access for all to any additional free childcare? What I

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said is, it has to be affordable, access, and you can't just promise

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something and then in terms of the quality of the care, how you would

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roll it out. I would want, if children's organisations said, that

:20:26.:20:30.

we must look at after school care. Would be means tested would parents

:20:31.:20:33.

have equal access to it regardless of personal circumstances? If you

:20:34.:20:37.

look at these proposals as they come through, the easiest thing to say

:20:38.:20:40.

is, yes, make it accessible to everyone at any point. We need to

:20:41.:20:47.

make sure it is affordable. So a universal principle is not one that

:20:48.:20:50.

you automatically subscribed to? It is not one currently applies. John

:20:51.:20:55.

Swinney did say it would apply to childcare. After he has decided it

:20:56.:21:02.

is not the spending priority now. Would it be better in the short into

:21:03.:21:05.

her targeted childcare? I think it be. For example, you could look at

:21:06.:21:09.

targeting vulnerable to old and Soviet don't -- so on. We know also

:21:10.:21:17.

that people suffering from the cost of living crisis, people working,

:21:18.:21:20.

mums who are nurses, going out during the day, in order to manage

:21:21.:21:27.

their childcare. We don't make good the enemy of excellence here. What

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we say is, what can we do with the money we have? I recognise that

:21:31.:21:33.

childcare as an issue goes beyond the blue are out of work. It is very

:21:34.:21:37.

often people, for example, who are paying more in childcare costs than

:21:38.:21:40.

they pay on a mortgage. As look at it rationally and look at what we

:21:41.:21:44.

can do, and that is what we did when we were in power. I'm sure John

:21:45.:21:50.

Swinney would agree, extending it, you might want to extend it further.

:21:51.:21:54.

The problem with this is, it is all terribly vague. Johann is talking

:21:55.:22:01.

about the cast of living. We are possibly to council tax freeze which

:22:02.:22:06.

has frozen the council tax. It is underfunded. It is not. It is linked

:22:07.:22:13.

to inflation. ?70 million were every year to support the council tax

:22:14.:22:18.

freeze. What is that doing? It is protecting households that are

:22:19.:22:19.

struggling in the current environment. Johann can deliver

:22:20.:22:24.

speeches saying we want to end the council tax freeze, and has

:22:25.:22:27.

frontbencher saying things all over the place, and we must buy more

:22:28.:22:31.

money per childcare, and there is nothing specific that comes out of

:22:32.:22:33.

the Labour Party other than proposals. All this talk about

:22:34.:22:39.

taking the hard choices is just vacuous. We have had to take the

:22:40.:22:42.

hard choices to balance the books. I have had to deal with all the

:22:43.:22:45.

spending cuts from the UK Government, we happen to reduce the

:22:46.:22:49.

budget here, and we're done that in a responsible fashion to protect

:22:50.:22:52.

people are struggling financially and to protect public services. We

:22:53.:22:56.

don't get any specific funding for that. Beyond 2016, the less vague in

:22:57.:23:03.

more specific you are, except you don't actually costed. This looked

:23:04.:23:07.

like an Argos catalogue, but with no prices attached. They ask. We know

:23:08.:23:11.

aspiration isn't enough. We can have an IQ at about that. It needs to be

:23:12.:23:14.

in the real world, how will be costed unfunded. -- and funded. $1

:23:15.:23:28.

million the SNP are the greatest unionists in this debate. You could

:23:29.:23:33.

argue an independent Scotland should join Europe. That would put to bed a

:23:34.:23:38.

lot of problems with joining the European Union. The euro survived

:23:39.:23:45.

the global crisis that was supposed to destroy it. It is so important to

:23:46.:23:51.

you that we keep the pound that you handed the initiative to your

:23:52.:23:55.

political opponents who will consistently say, no, we do not

:23:56.:24:01.

agree to a currency union we think it is unlikely we would agree a

:24:02.:24:05.

currency union. It is as if you do not have the courage of your own

:24:06.:24:10.

convictions. You do not really believe that Scotland could take a

:24:11.:24:14.

different path on the really important stuff. The purpose of

:24:15.:24:24.

independence is to give Scotland and Scottish Parliament the ability to

:24:25.:24:31.

take decisions in terms of our economy. Let's just explore the

:24:32.:24:36.

issue of the currency and why it is right we should maintain sterling as

:24:37.:24:40.

the currency of independent Scotland. The principal reason for

:24:41.:24:44.

me is we have a significant amount of trade with companies south of the

:24:45.:24:49.

border and for companies south of the border back into Scotland. Why

:24:50.:24:56.

don't we have an independent currency? I want to make that

:24:57.:25:02.

process as efficient and effective as possible. There is a very easy

:25:03.:25:07.

way to do that and that is to vote no. Surely part of the point of

:25:08.:25:16.

independence is to get over difficulties. What she felt to open

:25:17.:25:20.

up is the opportunity to shake different economic decisions. --

:25:21.:25:28.

take different economic decisions. We could have taken decisions not to

:25:29.:25:38.

reduce capital expenditure. We could have invested instead in the

:25:39.:25:41.

construction industry in Scotland and building Scottish

:25:42.:25:48.

infrastructure. You can do that with an independent currency or as part

:25:49.:25:51.

of the Eurozone. These things are linked together. If you want to

:25:52.:25:59.

ensure you are operating in the most effective trading environment, the

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same currency makes the strongest argument for that. What you get with

:26:04.:26:08.

independence is the ability to shape decisions. Whether there is a

:26:09.:26:18.

currency union is up to the United Kingdom and not up to you. You have

:26:19.:26:23.

handed on a plate that argument, which will be made time and time

:26:24.:26:29.

against you. You do not have an argument. You say how rational it

:26:30.:26:32.

would be to have a currency union but it does not matter what you say.

:26:33.:26:39.

The Bank of England, it may be called the bank of England, but it

:26:40.:26:45.

is actually the bank of the United Kingdom. We have a stake in that

:26:46.:26:50.

bank. It is to operate on our behalf as part of the United Kingdom. It is

:26:51.:26:55.

part of the assets of the United Kingdom and we have a stake in that

:26:56.:26:59.

as an institution and an organisation and a currency. We need

:27:00.:27:04.

to get what is right in the interests of the people of Scotland

:27:05.:27:07.

out of our access to that particular asset. That is why we argued for

:27:08.:27:17.

that. It compels the United Kingdom to have a currency in Scotland. You

:27:18.:27:23.

have interviewed the Chancellor of the ecstatic and you have asked him

:27:24.:27:29.

to rule it out. -- the Chancellor of the exchequer. On every occasion, it

:27:30.:27:37.

has not been ruled out as a possibility. Car when Jones has said

:27:38.:27:41.

he will take an awful lot of persuading. Staying part of the

:27:42.:27:48.

United Kingdom, they would listen to his voice. It seems odd to me. You

:27:49.:27:55.

will have less control over monetary policy. Even if it is what you

:27:56.:28:06.

aspire to, you cannot deliver it. You must have a plan B. If Ed

:28:07.:28:15.

Miliband becomes Prime Minister in 2015, and so he is leading the

:28:16.:28:20.

negotiations after a yes vote, would you be advising him to offer some

:28:21.:28:26.

sort of currency union? If Ed Miliband is the Prime Minister, his

:28:27.:28:31.

first responsibility is to the people he represents. He would have

:28:32.:28:36.

to apply that test and it is quite a difficult test. He might ask, what

:28:37.:28:45.

should I do? Somebody in Scotland does not have an influence over

:28:46.:28:51.

that. He has stood aside in the interests of people. It is a kind of

:28:52.:28:56.

ludicrous position to be in. We have got to a place where we have two and

:28:57.:29:01.

treat the rest of the United Kingdom, which has basically done us

:29:02.:29:06.

down the last 300 years, be nice to us. That is why it does not make

:29:07.:29:12.

sense. We should not rule it out. His test must be, what are the

:29:13.:29:19.

interests of the people in the rest of the United Kingdom? You want to

:29:20.:29:23.

stay in the United Kingdom but it is a hard thing to take. Having said we

:29:24.:29:29.

would need to be liberated from the rest of the United Kingdom, we say,

:29:30.:29:35.

would you do us a favour and let us be part of the United Kingdom? I do

:29:36.:29:40.

not agree that it should be a separate currency. It makes logical

:29:41.:29:47.

sense. He cannot admit there is a plan B. If there needs to be, he

:29:48.:29:54.

knows how important that is. Ed Miliband would be representing the

:29:55.:30:01.

rest of the United Kingdom in 2015. He said after a yes vote. In 2015,

:30:02.:30:08.

he would be Prime Minister of the United Kingdom as these negotiations

:30:09.:30:12.

were going on. Wouldn't he had to take into account the interests of

:30:13.:30:19.

all the United Kingdom? In Scotland has voted to leave the United

:30:20.:30:23.

Kingdom, that is the choice of Scotland. It will be the jobs of

:30:24.:30:27.

those who are negotiating on behalf of Scotland to get as good a deal as

:30:28.:30:34.

possible. They do not need to take the interests of Scotland into

:30:35.:30:39.

account. I am glad that Scotland is inside the United Kingdom. I know

:30:40.:30:43.

that Ed Miliband will serve the interests of the whole of the United

:30:44.:30:49.

Kingdom. We will share risks and pool resources. The us dirty

:30:50.:30:51.

programme of the Tories is damaging. -- the austerity programme

:30:52.:31:04.

will stop we have had families right across the United Kingdom. I want to

:31:05.:31:11.

stop the Tory government being able to impose... The SNP existed when we

:31:12.:31:20.

were creating the welfare state. We are facing a bedroom tax. We have to

:31:21.:31:30.

put up with this. We are mitigating it to the full of our legal ability.

:31:31.:31:37.

I can assure you that. You could have supported that. Why can't you

:31:38.:31:47.

take the decision? Why on earth are we allowing the UK Government to cut

:31:48.:31:55.

our capital? It is your job to worry about the financial markets. When I

:31:56.:31:59.

spoke to Alex Salmond last night about whether a currency union would

:32:00.:32:04.

be permanent, he seemed to be on the one hand saying the SNP would enter

:32:05.:32:10.

as if it would be a permanent union but was careful to say what an SNP

:32:11.:32:21.

government could leave that. If you have a currency union you want, it

:32:22.:32:26.

would have to be permanent. You would have to convince the financial

:32:27.:32:31.

markets it was permanent, or it would be an open invitation to mark

:32:32.:32:36.

up the rates in Scotland with bonds and speculate on a possible break-up

:32:37.:32:41.

of the union. It is a once and for all choice. I think the currency

:32:42.:32:47.

union is a long-standing choice for Scotland. The point the First

:32:48.:32:55.

Minister was making... You mean we would have to enter into it. About

:32:56.:33:04.

not having a currency union, as soon as you get your currency, that is

:33:05.:33:11.

out of the window. There are political choices which could be

:33:12.:33:16.

exercised by people in Scotland after independence. Parliament would

:33:17.:33:22.

be elected. It would be free to make the decisions it thinks appropriate.

:33:23.:33:28.

From our point of view, our proposition is it is a long-term

:33:29.:33:33.

commitment to sterling. At the heart of the whole White Paper is the

:33:34.:33:37.

notion of choice of the people of Scotland being able to decide on

:33:38.:33:41.

their own priorities. It is important for a parliament to decide

:33:42.:33:49.

about welfare. Not just resign ourselves to the fact the UK

:33:50.:33:59.

Government can impose a bedroom tax. What if the markets got a smidgen of

:34:00.:34:03.

a hint that Scotland was not serious? You know what would

:34:04.:34:10.

happen. The point to the First Minister makes in his introduction

:34:11.:34:14.

in the White Paper, which he was talking about tonight, is to

:34:15.:34:17.

acknowledge the fact we would live in a democracy. I think we should

:34:18.:34:26.

try to change the pace for a few minutes and try and be good and ask

:34:27.:34:31.

short questions if you could give us short, brief and to the point

:34:32.:34:36.

answers. Hopefully we'll get a number of questions in our quickfire

:34:37.:34:41.

round. Do you support the SNP proposal to bring the Royal mail

:34:42.:34:46.

back into public ownership in the event of independence? I had an

:34:47.:34:54.

uncle who was a postman. I understand the pressure that would

:34:55.:34:58.

put on the Royal mail. My instinct is to say we would want it back in

:34:59.:35:01.

public but we need to be able to deliver on that commitment. And

:35:02.:35:08.

independence Scotland would have powers over drugs calcification.

:35:09.:35:18.

Would you legalise cannabis? -- classification. No. I would like to

:35:19.:35:27.

have Trident removed. I want a serious engagement about nuclear

:35:28.:35:35.

weapons. David Cameron said he would prevent new migrants from claiming

:35:36.:35:40.

out of work benefits for up to three months. Would you like to match that

:35:41.:35:46.

policy? I would need to know more detail about what he is proposing. I

:35:47.:35:54.

think we have to look at the consequences, sometimes, in terms of

:35:55.:35:58.

what Ed Miliband has said where people are encouraged to undercut

:35:59.:36:05.

people who work in this country. Automatic rights to claim benefits,

:36:06.:36:11.

yes or no? I would need to look into it. We need to allow people into the

:36:12.:36:18.

country who could make an economic contribution to our country. It is

:36:19.:36:24.

about ensuring we get into our labour market people who could make

:36:25.:36:29.

a valuable economic contribution to Scotland. The debate the Prime

:36:30.:36:33.

Minister is engaging in and I see Ed Miliband playing along with as well

:36:34.:36:39.

is a slogan I is debate about immigration. We need a good and hard

:36:40.:36:43.

look about maintaining these talented people. What would be

:36:44.:36:52.

better and independent Scotland run by a Labour government or being part

:36:53.:36:56.

of Britain and run by a Conservative government? We would have a Scottish

:36:57.:37:04.

parliament. I would fight with every bit of me to deliver a Labour

:37:05.:37:09.

government in 2016. Should we be in the United Kingdom, we would look

:37:10.:37:13.

for support in the Scottish Parliament elections as well. You

:37:14.:37:20.

have said you want to see workers on the boards of companies. We would

:37:21.:37:26.

discuss this with industry. We have seen a number of examples in our

:37:27.:37:31.

country. We have good, strong employee participation in the

:37:32.:37:34.

management of companies which has really helped those companies. We

:37:35.:37:42.

need to take that a stage further. How would you answer that question?

:37:43.:37:49.

Very often workers have more of a feel of industry than shareholders.

:37:50.:37:53.

The best example is in the shipbuilding industry. You saw the

:37:54.:37:56.

company and workforce coming together to try to secure jobs in

:37:57.:38:01.

the Clyde. I would not make it compulsory. We would consult broadly

:38:02.:38:05.

on that. It is not something that any board should be frightened of.

:38:06.:38:10.

It would strengthen decisions they make because they would be

:38:11.:38:12.

representing it workforce with a long-term commitment.

:38:13.:38:18.

We will now return to issues in greater depth again. Johann, when as

:38:19.:38:25.

Labour's commission and devolved powers going to report? It is in the

:38:26.:38:33.

spring. I will give you a backstop date, which is our party conference

:38:34.:38:38.

in March. I am very clear that we had an interim report, we are now

:38:39.:38:41.

consulting on that, we had interest Inc evidence, and anyone who has

:38:42.:38:46.

taken the time to look at our interim report would respond in

:38:47.:38:50.

terms of how they see devolution being strengthened. One would

:38:51.:38:53.

presume this is a priority be used to get this reporter? One of the

:38:54.:38:59.

first things that as leader was announced the devolution commission

:39:00.:39:02.

would take place. And it took seven months for the first meeting. I am

:39:03.:39:06.

very clear now that we want to this information for people ahead of the

:39:07.:39:09.

decision, we want to do it in the spring, and the Test of what we do

:39:10.:39:14.

will not be in order to get it out there, but to make sure it is a

:39:15.:39:17.

strong contribution to the debate about how we make devolution work

:39:18.:39:23.

inside the United Kingdom. You said you were minded to fully devolving

:39:24.:39:28.

from tax. I wonder whether between now and the referendum, you will be

:39:29.:39:32.

able to reach some sort of agreement with the other parties in Better

:39:33.:39:38.

Together to come up with a joint offer that people will be able to

:39:39.:39:44.

pursue in the event of a no vote? I think where we come together is in

:39:45.:39:48.

our desire to make sure the devolution works, and there are a

:39:49.:39:52.

number of different options. I would never turn away from agreeing with

:39:53.:39:54.

people and strengthening our position, but as I said, we have a

:39:55.:39:58.

distinct set of proposals we are bringing forward. One thing I am

:39:59.:40:02.

keen to look at, and it follows from the agenda of the islands, local

:40:03.:40:06.

authorities, how you devolve power down out of the Scottish parliament

:40:07.:40:09.

into local communities. If you want to do that and the Liberal Democrats

:40:10.:40:13.

want to, and the Conservatives are looking at doing that, shouldn't you

:40:14.:40:17.

come together and reach some kind of common position in advance of the

:40:18.:40:22.

referendum so that people have a clear idea what happens if it goes

:40:23.:40:27.

ahead? I think of it as an honest agreement, yes, if it is a force

:40:28.:40:30.

want to make it look as we're unified no. It must be about being

:40:31.:40:34.

genuine and the offer we are making. We stood in the

:40:35.:40:37.

Constitutional Convention and work with other people to try to get the

:40:38.:40:43.

proposal I ahead of getting the parliament established in 1997. I

:40:44.:40:46.

would hope that people recognise there will be distinctive Labour

:40:47.:40:49.

messages around how we seek evolution working, and particularly

:40:50.:40:53.

for me, it is about taking power away from politicians, down into

:40:54.:40:59.

communities where people can make a decision. We know in island

:41:00.:41:03.

communities how important that is, and some of the urban communities I

:41:04.:41:06.

represent, how important that is too. On that, one of the thing that

:41:07.:41:12.

puzzles me about you, I said I was puzzled by John Swinney's commitment

:41:13.:41:16.

to currency union at all costs. What puzzles me about Labour's approach

:41:17.:41:19.

to this debate is that you are doing it entirely on John Swinney's

:41:20.:41:24.

ground. Labour is supposed to be a socialist party. It has a

:41:25.:41:29.

tradition, it would claim, of International is in, you have set

:41:30.:41:35.

the entire agenda rather than saying, as I am sure some people in

:41:36.:41:39.

Scotland would say, this debate is just a relevant the Big issues going

:41:40.:41:43.

on in the world. Why not say, here is our vision, this is what we want

:41:44.:41:47.

to lament in Britain, I will take part in independent debate, but we

:41:48.:41:50.

frankly think it is a relevant? I can understand the argument, but do

:41:51.:41:55.

not need that it is an SNP position. If you look at what they have done

:41:56.:41:58.

since taking control of the Scottish Parliament, power has been sucked up

:41:59.:42:08.

into the centre, and... Can I ask about the Labour Party? I want to

:42:09.:42:12.

expand the point. What I think is entirely consistent with my politics

:42:13.:42:16.

is to make decisions at the lowest level possible in the interests of

:42:17.:42:23.

communities. That is no vision to better what is in this. With

:42:24.:42:28.

respect, there are certain things I think should stay at Westminster,

:42:29.:42:33.

and I would argue that. There are some decisions whether in housing or

:42:34.:42:36.

whatever, that are better made at the local level. The success of the

:42:37.:42:40.

Housing Association movement, the cooperative movement, has been

:42:41.:42:42.

because they understood the people who are to live with the decisions

:42:43.:42:47.

are more likely to make the correct ones. It is in that frame that I

:42:48.:42:52.

argue around powers, not simply, this is the SNP ground. If you look

:42:53.:42:59.

at what they do, I want to see power down in our communities, where

:43:00.:43:03.

people with their talents and abilities are liberated to make

:43:04.:43:07.

decisions that will benefit them. John Swinney is looking increasingly

:43:08.:43:10.

frustrated. Yellow marker we have been around the house with this

:43:11.:43:13.

before. The Liberals and Conservatives and the commission

:43:14.:43:16.

after we became the minority government in 2007, and that was

:43:17.:43:19.

meant to be a stock take a devolution to give the parliament

:43:20.:43:22.

all the powers are required. It reported, we got able whisper of

:43:23.:43:28.

extra powers. Now, Johann is that it again, suggesting there are more

:43:29.:43:30.

powers around the corner and all this. Yellow matter you don't

:43:31.:43:35.

describe as a whimper when you are exercising them. As for power being

:43:36.:43:41.

exercised at local levels in all this, to macro has been part of

:43:42.:43:53.

administration... Before the Thatcher period, as a young woman, I

:43:54.:43:57.

thought everything should be done at a British level. That is my vision

:43:58.:44:02.

of the world. As a schoolteacher, I stood in a classroom and watched

:44:03.:44:06.

children and the hope disappearing from their faces. But I also knew

:44:07.:44:10.

there were children in Newcastle, and Cardiff, who were experiencing

:44:11.:44:13.

the same thing. Thatcher attack vulnerable people. What I understood

:44:14.:44:18.

then, the lesson I learned, if you bring power closer to vulnerable

:44:19.:44:23.

people, if you bring power closer to people, you can make a difference.

:44:24.:44:26.

At the balance between the two. It is possible to have decisions of the

:44:27.:44:30.

UK level, or a Scottish level, but what John does not understand, we

:44:31.:44:35.

should allow liberation of decisions at a local level. We have done that

:44:36.:44:39.

with our local government plans. Know you haven't. What Johann is

:44:40.:44:44.

doing, that rate at the nation are about the evils of Thatcherism, she

:44:45.:44:48.

is allowing the evils of Thatcherism to be carried on by his successors

:44:49.:44:51.

who are applying a bedroom tax in Scotland, attacking the vulnerable,

:44:52.:44:57.

the most vulnerable in our society, and Johann is quite happy to leave

:44:58.:45:02.

the decisions. You have the opportunity to supporters. Against

:45:03.:45:06.

the wishes of the people of this country. If Johann was to follow

:45:07.:45:09.

their argument is a logical conclusions, she would want to have

:45:10.:45:13.

the power in Scotland to protect people from the type of policies

:45:14.:45:17.

that have been inflicted on Scotland. I'm not sure how cutting

:45:18.:45:20.

corporation tax by 3p in the pound is going to help that. John Swinney,

:45:21.:45:25.

you are warning of as you see it, the evils of Thatcherism and

:45:26.:45:29.

Conservative government, but this document also suggest that if there

:45:30.:45:32.

is a no vote, the Scottish budget would be cuts, that you wouldn't

:45:33.:45:37.

have any new powers transferred in those circumstances. Is this your

:45:38.:45:43.

version of Project Fear? I think it is an honest reflection of the

:45:44.:45:45.

likelihood of the circumstances we will face if there is a no vote. It

:45:46.:45:48.

is hardly positive campaign, though. It is two pages at a very

:45:49.:45:54.

substantial number. It illustrates to people the dangers of voting no

:45:55.:45:57.

on this referendum, because we have been around the houses of this

:45:58.:46:00.

before, we have promises of extra powers that have not materialised,

:46:01.:46:04.

and what is clear, and you can see from the all-party movement from the

:46:05.:46:08.

House of Commons, there is a growing consensus of opinion in the UK

:46:09.:46:12.

Parliament that if Scotland votes no in the referendum, and will be an

:46:13.:46:16.

assault on the funding formula spacing Scotland, and Carl Wynn

:46:17.:46:24.

Jones is a signed up member of the cup the Scottish public funding

:46:25.:46:26.

campaign. That would be hugely damaging to the interests of the

:46:27.:46:30.

people of Scotland. Johanne, you have 30 seconds. Time after we got

:46:31.:46:36.

this parliament because we we committed to it, and if you want to

:46:37.:46:38.

hear negative campaigning, you should listen to the Prime Minister

:46:39.:46:45.

delay, saying the rest of the country would be at their budgets.

:46:46.:46:48.

These are the same people to negotiate within the sterling zone.

:46:49.:46:51.

That is entirely irrational. They can't both be monsters and your

:46:52.:46:54.

friends. I don't recognise this characterisation of people across

:46:55.:46:58.

the United Kingdom and the hostility to Scotland. It drives the politics

:46:59.:47:02.

of the SNP. It is not the live reality people across Scotland. We

:47:03.:47:05.

see them genuinely as friends and neighbours. Let's agree to disagree.

:47:06.:47:11.

It will probably continue right up until a certain date next year. That

:47:12.:47:14.

is really all we have time for tonight. And Q2 both of you for

:47:15.:47:18.

joining us. From us, good night.

:47:19.:47:23.

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