13/09/2011

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:00:08. > :00:12.The crisis with the euro is as bad as ever it has been and tomorrow

:00:12. > :00:16.may come the critical intervention which could save it or sink it.

:00:16. > :00:18.As Europe's leaders get ready to teleconference their way out of the

:00:18. > :00:24.conference, which button will they press.

:00:24. > :00:27.I will be asking the German Government what they intend to do.

:00:27. > :00:32.Trades unionists are underwhelmed by the Labour leader. I do believe

:00:32. > :00:36.it was a mistake for strikes to happen last summer. Shame!

:00:36. > :00:41.continue to believe that. What is the state of the Labour

:00:41. > :00:44.Party's relationship with its pay masters.

:00:44. > :00:51.As Palestine appeals to the world for place at the UN what are the

:00:51. > :00:54.chances of success? Can scientific fact ever inspire

:00:54. > :01:04.the same affection as religious stories. Richard Dawkins goes myth

:01:04. > :01:08.

:01:08. > :01:12.Good evening, the convention in news programmes is that rereport

:01:12. > :01:16.what's happened, but these are unconventional turbulent times, and

:01:16. > :01:20.frankly, we don't know what is going on. Something is up, though,

:01:20. > :01:25.with the euro. Rumours have swirled all day about the Greeks defaulting

:01:26. > :01:28.on their debt, big French banks in trouble, and the Germans

:01:28. > :01:32.manoeuvring towards some sort of operation that might save the

:01:32. > :01:37.currency, for now, at least. Here is the best guess of our economics

:01:37. > :01:41.editor, Paul Mason. There is rumours because the French started

:01:41. > :01:44.the day by announcing, briefing journalists, that they were going

:01:44. > :01:49.to make a big announcement about the future of Greece. Then they

:01:49. > :01:52.didn't. There will be something tomorrow. But there has been

:01:52. > :01:56.frantic private diplomacy all day between Greece, France, the USA,

:01:56. > :02:00.President Obama coming out and saying in public, Europe get your

:02:00. > :02:08.act together, you are pulling the rest of the economy down. It has

:02:08. > :02:13.all been occasion. Greece needs 8 billion euros, from the big bailout

:02:13. > :02:17.last May. The Europeans and the IMF decided it say unless you do X, Y

:02:17. > :02:22.and Z, you are not getting anything. This created the stand-off, going

:02:22. > :02:27.on for the last couple of week. It is coming to head, we have two days

:02:27. > :02:30.to do the deal. Meanwhile, bank shares are tumbling, specific EU

:02:30. > :02:35.banks looking pretty precarious. Tomorrow, they have decided there

:02:35. > :02:44.will be a teleconference between Merkel, Sarkozy and the Greek Prime

:02:44. > :02:52.Minister, Andropov, and boy, would all us economics - economists like

:02:52. > :03:00.to be in that teleconference. won't be press 1 for default and 2

:03:00. > :03:05.for austerity, there aren't many options beyond that. The French,

:03:05. > :03:13.Greek and German leaders will speak tomorrow knowing they are running

:03:13. > :03:20.out of time. Today, Germany's leader met Finland's leader to sort

:03:20. > :03:26.out a little local difficulty. The Fins are so worried Greece will

:03:26. > :03:31.default on the bailout, they want security from Europe. Just one part

:03:31. > :03:34.of the malaise of back tracking and indecision. To the wider world,

:03:34. > :03:44.Angela Merkel's message was, stop talking about a Greek default. She,

:03:44. > :03:46.of course, is worried about nothing else.

:03:46. > :03:49.TRANSLATION: We have to always consider that everything we do is

:03:49. > :03:53.controlled. That we know the consequences. Because otherwise we

:03:54. > :04:02.can very quickly have a situation in the eurozone that we do not want,

:04:02. > :04:08.and which will have very difficult consequences for all of us.

:04:08. > :04:13.Today, in Greece, the taxi drivers went on strike, and marched, over

:04:13. > :04:20.the weekend there have been riots. Meanwhile, the Prime Minister, here

:04:20. > :04:22.pictured on a coffin, had to slap down an emergency 2 billion euro

:04:22. > :04:29.property tax, because EU negotiators threatened to walk away

:04:29. > :04:35.from talks on the next round of the bailout. For Greek budget deficit,

:04:35. > :04:42.it is on track to be 9.5% of GDP, worse than expected and worse than

:04:42. > :04:46.demand by the bailout deal, because Greek GDP is shrinking, but Greece

:04:46. > :04:51.needs 8 billion euros this week, the latest tranche of bailout money

:04:51. > :04:54.that is being held, without it, it only has money to pay its bills

:04:54. > :04:59.until October. Some believe the euro won't be out of crisis, until

:04:59. > :05:04.Greece is out of the euro. I think it is inevitable that Greece will,

:05:04. > :05:07.in due course, be ejected, or choose itself, to leave. You can't

:05:07. > :05:11.have a more coherent long-term solution for the eurozone until you

:05:11. > :05:16.have bitten that bullet and got the Greeks to leave. In July the idea

:05:16. > :05:20.of a Marshall Plan for Greece, modelled on USA to Europe in 1948

:05:20. > :05:23.made it so far as a draft EU declaration, the Brits got it

:05:23. > :05:27.removed. But now, senior German figures are behind the scenes,

:05:27. > :05:32.urging Germany to do just that. Rebuild the Greek economy, with

:05:32. > :05:36.German money. But it is not flavour of the month.

:05:36. > :05:41.The problem is, that once you come up with the big master plan to

:05:41. > :05:45.solve the crisis once and for all, the other countries, on the

:05:45. > :05:49.periphery, the Spain, the Italys or the Irelands, would have an

:05:49. > :05:56.incentive to just rely on French- German leadership and relax their

:05:56. > :06:01.own efforts to actually shape up. As Greece slides, Italy is drawn

:06:01. > :06:05.into the zone of danger. Italy and Spain are relying on the European

:06:05. > :06:10.Central Bank, funded by Germany, to keep their own debts managable. But

:06:10. > :06:16.when Italy had to raise a new loan today t came at the highest-ever

:06:16. > :06:20.interest rate in the Euro-era, 5.6 per cent. Even at that price, China

:06:20. > :06:24.declared it would start buying Italian debt, though not, one

:06:24. > :06:28.suspects, out of solidarity with the Italian Communists. The euro

:06:28. > :06:31.got a decent lift out of this news that China was going to come in and

:06:31. > :06:35.buy Italian debt. Or there is suspicion that is it will, it was

:06:35. > :06:38.so short lived. I think really the market is now at the point where it

:06:38. > :06:43.is looking beyond what can we do to help Italy and Greece, to really

:06:43. > :06:47.the next chapter in this whole huge sorry mess.

:06:47. > :06:51.One idea gaining traction is for Brussels to create a new fund, to

:06:51. > :06:56.move tax-payers' money from the north to the south, modelled on the

:06:56. > :06:58.EU structural fund, but for euro countries only. Here is the

:06:58. > :07:01.advantage? Many of the schemes people have talked about in

:07:01. > :07:04.financial markets, seem to me to be non-starters, precisely because

:07:04. > :07:07.they are associated with the Germans taking on numbers in the

:07:07. > :07:12.thrillions of additional debt. The kind of thing which I'm talking

:07:12. > :07:15.about is numbers in the low billions of annual transfers. So

:07:15. > :07:19.I'm talking about switching mind set to thinking we can find a

:07:19. > :07:23.solution that works within the find of framework we already have,

:07:23. > :07:26.taking those things a little bit further. But that, of course s a

:07:26. > :07:31.long-term commitment, rather than a sticking plaster solution where you

:07:31. > :07:37.pretend the problem will all go away by the day after tomorrow.

:07:37. > :07:41.It But, time is important. Tomorrow's big teleconference means

:07:41. > :07:44.we are moving beyond the summit stage to crunch time for Greece.

:07:44. > :07:50.Paul s there any evidence that European politicians are about to

:07:50. > :07:53.have a wholesale change of mind? they do it will be a pretty big one.

:07:53. > :07:59.They have philosophically nailed their colours to the mast. That the

:07:59. > :08:04.euro, equals the EU, equals the internal market. Mr Romano, last

:08:04. > :08:14.week, made the claim, that without the euro, the internal market would

:08:14. > :08:18.fall apart in a crisis. It is a long way from that in seeing one

:08:18. > :08:22.member leave. You have started to see in Germany opposition

:08:22. > :08:25.politicians talking about default, and talking about it. You have also

:08:25. > :08:29.started seeing figures in the background of German politics

:08:29. > :08:34.saying we could do this Marshall Plan, we could draw a line under

:08:34. > :08:39.our post-war history by putting our hands in our pockets and saving

:08:39. > :08:44.Greece T will come down what-to- what the German people tell their

:08:44. > :08:47.elected - it will come down to what the German people tell their

:08:47. > :08:53.elected leaders to do. From all this back room activity, I can tell

:08:53. > :08:57.it is not far away. Here to chew this over from Germany, is Peter

:08:57. > :09:01.Altmaier, Chief Whip of Angela Merkel's Christian Democrats,

:09:02. > :09:08.getting German MPs to vote for bailout. Joining us also is a Greek

:09:08. > :09:12.journalist, and here in the studio, Terry Smith, chief executive of the

:09:12. > :09:16.currency brokers. Mr Altmaier, do you know what will happen tomorrow?

:09:16. > :09:21.Nobody knows what will happen tomorrow. We have a clear idea

:09:21. > :09:24.today what we have to do. The world economy is in a critical condition.

:09:24. > :09:31.It means we have a certain responsibility to be very firm and

:09:31. > :09:36.very clear about what we intend to do, and our aim is clear, we want

:09:36. > :09:41.to preserve the euro, we want to avoid recession on a worldwide

:09:41. > :09:46.scale. That means we want to keep Greece inside the euro, and we want

:09:46. > :09:51.to help Greece overcoming the crisis. But, of course, the Finance

:09:51. > :09:57.Minister, said, if necessary, Greece should be allowed to just go

:09:57. > :10:05.bust? The Chancellor made it clear that public talking about default

:10:05. > :10:12.is not a good idea. We have a mission under way in Greece, we

:10:12. > :10:16.will see whether Greece will make the required efforts to achieve

:10:16. > :10:20.more stability culture in a sustainable way, and we are

:10:20. > :10:24.prepared to help Greece overcoming the problems. We still think the

:10:24. > :10:30.best solution would be to avoid default. But this is something, of

:10:30. > :10:36.course, that has to be discussed and not publicly, but if the mind

:10:36. > :10:41.is clear to overcome the crisis. How do you think this will solve

:10:41. > :10:44.itself? I think Greece will leave the euro and it is going to default.

:10:44. > :10:49.I don't know what will happen in the meantime, but it is detail.

:10:49. > :10:53.Greece is running a higher deficit than planned, that will continue,

:10:53. > :10:58.nothing practical can be done to prevent that. The analogy I would

:10:58. > :11:01.give you is Germany is like a well- to-do parent that has allowed her

:11:01. > :11:06.child out with a platinum credit card, drawn on their account. And

:11:06. > :11:10.they will bankrupt themselves in the efforts to save Greece f they

:11:10. > :11:14.have the political will to do so. As a representative of this

:11:14. > :11:19.irresponsible child, why should the Germans keep on bailing out Greece?

:11:19. > :11:24.Well, first of all, I'm not a representative of the Greek

:11:24. > :11:29.Government. But, the problem is, I think, we are fixating a little too

:11:29. > :11:34.much on Greece. I understand that of course it captures the

:11:34. > :11:37.imagination and our imagination as journalists, but what we are not

:11:37. > :11:41.talking about is the other peripheral and not so peripheral

:11:41. > :11:44.countries like Italy that are in a lot of trouble. We are not talking

:11:44. > :11:47.right now about the structural and design problems with the common

:11:47. > :11:53.currency, and what we are not talking about is why we are doing

:11:53. > :11:57.all of this, and why we are doing all of this, is across the

:11:57. > :12:02.continent banks are undercapitalised, it is banks going

:12:02. > :12:09.bust first if Greece defaults. you think Greece is a special case?

:12:09. > :12:13.Yes, Greece is certainly a special case, in so far as the economic

:12:13. > :12:18.problems of Greece are much worse than in all the other countries

:12:19. > :12:23.concerned. There are problems with the banks, certainly in other

:12:23. > :12:27.European countries as well. But mistakes have been made in Greece

:12:27. > :12:34.over a number of years, and this has to be repaid, it cannot be

:12:34. > :12:39.repaid in a short time, but what we need is a clear cut commitment from

:12:39. > :12:44.the Greek Government to change things profoundly, to organise a

:12:44. > :12:50.better administration, to privatise public enterprises. This is a very

:12:50. > :12:55.important gesture, we know it is not easy to do. But the monitoring

:12:55. > :13:00.Troika from the EU will report on this, and this will be the basis

:13:00. > :13:04.for the further decisions on how to proceed with the rescue package for

:13:04. > :13:13.Greece. Perhaps the leopard will change its spots, if it were going

:13:13. > :13:16.to do so, would we not have seen some evidence by now? Well, I'm, of

:13:16. > :13:22.course, not a representative of the Government, and I'm just the Chief

:13:22. > :13:27.Whip in parliament. My impression is that we are in a critical stage

:13:27. > :13:31.right now. There are so many are you mores, so many diverging

:13:31. > :13:35.interests in this debate and what we have to do is as politicians is,

:13:35. > :13:40.we have to be clear, and I come back to what the Greek colleague

:13:40. > :13:46.has said, the euro, so far, was a big success story, and we, as

:13:46. > :13:49.politician, should be aware, if one country would have to leave the

:13:49. > :13:53.euro, it could have devastating effects for the rest of the

:13:53. > :13:57.European Union, and therefore, we should consider very carefully what

:13:57. > :14:02.we are doing as the next step. What do you think the Greek

:14:02. > :14:08.Government will do next? Well, I mean, to be very honest with you,

:14:08. > :14:12.there is very little they can do. What they have been doing badly is

:14:13. > :14:16.adhering to those targets and implementing those reforms, and it

:14:16. > :14:21.is perfectly understandable that Governments and tax-payers who

:14:21. > :14:25.actually pay up, for these bailouts, demand results. What needs to be

:14:25. > :14:30.said, however, is as has been mentioned, Greece haz been

:14:30. > :14:33.mismanaged for so many years, that many of the problems are deeply

:14:33. > :14:39.rooted within the country and its economy. So reform is a little

:14:39. > :14:42.slower to come. And I would argue that evidence of the shock therapy

:14:42. > :14:49.Greece has been undergoing for the last year-and-a-half, is the

:14:49. > :14:54.recession the country is in. It is reaching 7.3% this quarter. These

:14:54. > :15:01.are unprecedented figures for a eurozone country. So, unfortunately,

:15:01. > :15:05.a big chunk of the Greek population are paying up. They are footing the

:15:05. > :15:10.bill for mismanagment that they did not cause, they are, in a way,

:15:10. > :15:14.asking for help, support, solidarity, so we can continue to

:15:14. > :15:19.enjoy all the benefits of the euro, and enjoyed across the eurozone, in

:15:19. > :15:25.Germany as well as in Greece. the meantime, Terry Smith, we have

:15:25. > :15:35.the prospect of this particular YuriGagarino50 Euro-crisis becoming

:15:35. > :15:40.

:15:40. > :15:45.a big bank this euro crisis? If we support Greece it will mean all the

:15:45. > :15:48.other countries in the periphery, but ones who have similar debt

:15:48. > :15:53.problems, none of which are complying with the austerity

:15:53. > :15:56.programme, if it costs so much they will bankrupt Germany, if you don't

:15:57. > :16:00.do it, you are left with the problem that the banks in certain

:16:00. > :16:04.countries, most particularly France, have bought so much debt off these

:16:04. > :16:10.countries that they will be bankrupted. Whichever way you jump

:16:10. > :16:17.it will be very bad. What's going to happen? Greece will leave the

:16:17. > :16:21.euro and default, I don't think it will rest with Greece. That's a

:16:21. > :16:26.superficial and easy solution there, I'm sorry, but it is the obvious

:16:26. > :16:30.thing to say, Greece will default and leave the euro, you have made

:16:30. > :16:32.an eloquent and intelligent argument about the

:16:32. > :16:37.interconnectiveness of banks and economies across the eurozone,

:16:37. > :16:40.would it not be a concern for you what it would mean if Greece left

:16:40. > :16:44.the euro, setting a precedent for other countries perhaps in the

:16:44. > :16:48.future, to leave the euro, in the near future as well, and what the

:16:48. > :16:53.ramifications of such a thing would be for the global economy, having

:16:53. > :16:58.one of the main currencies of the global economy completely

:16:58. > :17:02.destablised. I go back to what I said. Hang on a skebgd second.

:17:02. > :17:08.There is no painless way out of this, whatever way you go will

:17:08. > :17:14.cause pain, the longer you leave it will be more painful. The longer

:17:14. > :17:24.you leave a child with a credit card, the worse it will be with you.

:17:24. > :17:24.

:17:24. > :17:29.Hang on a second. I must join my Greek colleague. It would, in my

:17:29. > :17:35.eyes, some how be irresponsible to say the Greeks should leave the

:17:35. > :17:40.euro, no singer problem could better be solved if Greek left the

:17:40. > :17:46.eurozone. The amount of Greek debt in Europe would double, when the

:17:46. > :17:52.Greek currency would be devalued, rapidly. We could not help, as we

:17:53. > :17:57.can do it right now, and the second point is as soon as Greece would

:17:57. > :18:02.leave the eurozone, there would be an enormous speculation about the

:18:03. > :18:07.next candidates for default, this is something we have to avoid by

:18:08. > :18:13.building a firewall across Europe, we have to develop the instruments,

:18:13. > :18:18.the tools, in a tool box that we need, and for the time being, we

:18:18. > :18:21.should dare, as politicians, to be firm, and not to respond to

:18:21. > :18:25.speculation, but to do what we have announced and what we have promised

:18:25. > :18:29.over so many weeks and months. We will look forward to seeing what

:18:29. > :18:34.happens tomorrow then. The public don't seem to know much

:18:34. > :18:37.about him, but the trades unions do, to judge by today's reception of Ed

:18:38. > :18:41.Miliband at the TUC conference, plenty of them don't much care for

:18:41. > :18:45.what they know. Plans will be laid for what I suppose is called a

:18:45. > :18:49.winter of discontent. As the unions try to organise strikes protesting

:18:49. > :18:52.against public spending cuts. The unions effectively gave the junior

:18:52. > :18:55.Miliband victory over his brothers in the race for the Labour

:18:55. > :19:03.leadership. When he told them today that strikes over public sector

:19:03. > :19:05.pensions were a mistake, they jeered him.

:19:05. > :19:10.Every politician wants to be loved, right?

:19:10. > :19:18.Better by far to get cheered in happy adoration, than face a

:19:18. > :19:21.barrage of angry cat calls. The unthinkable happened, they

:19:21. > :19:28.booed him. Ceausescu was dumb struck, well, not necessarily, not

:19:28. > :19:30.if you are this man, in front of the TUC conference. It is our job

:19:30. > :19:34.to...Tho They are not. They are not continuing.

:19:34. > :19:40.A few boos from the unions wouldn't have hurt Ed Miliband's feelings

:19:40. > :19:46.today one little bit. It was proof, say his supporters, that he's no

:19:46. > :19:53.union puppet, no Red Ed, he is, they say, distinctly, his own man.

:19:53. > :20:00.There are times when you and I will disagree. You will speak your mind,

:20:00. > :20:03.and so will I. But, our link is secure enough, mature enough, to

:20:03. > :20:08.deal with disagreement. Because the relationship between party and

:20:09. > :20:14.unions, for me, is not about romance, or nostalgia, it is about

:20:14. > :20:17.respect and shared values. What drew the heckles, well, firstly, a

:20:17. > :20:23.condemnation from the Labour leader of the recent public sector strikes.

:20:23. > :20:27.So I fully understand why millions of decent public sector workers are

:20:27. > :20:30.angry, but while negotiations were going on, I do believe it was a

:20:30. > :20:37.mistake for strikes to happen last summer.

:20:37. > :20:41.I continue to believe that. Shame. But what we need now is meaningful

:20:41. > :20:46.negotiation, to prevent further confrontation over the autumn.

:20:46. > :20:51.Mr Miliband didn't win many friends in the hall by praising non-local

:20:51. > :20:55.authority-run schools. Let me just tell you, let me tell you about my

:20:55. > :20:58.experience of academies, I have two in my own constituency, they have

:20:58. > :21:02.made a big difference to educational standards in my

:21:02. > :21:06.constituency, that is my local experience. I'm sorry people say

:21:07. > :21:10."shame", I care about the kids in my constituency, and they have made

:21:10. > :21:14.a big difference, it has made a big difference to kids in my

:21:15. > :21:17.constituency. Critics of the link between the

:21:17. > :21:22.trades unions and the Labour Party sometimes fail to appreciate is

:21:23. > :21:26.that it was actually the unions that set up the Labour Party in the

:21:26. > :21:30.first place. To better represent their interests.

:21:30. > :21:35.However, what supporters of this link can sometimes not quite grasp

:21:35. > :21:39.is just how bad it can look to the increasingly large proportion of

:21:39. > :21:44.the British population who aren't in a trade union.

:21:44. > :21:48.Labour Party strategists worked out a long time ago, you can't actually

:21:48. > :21:53.win a British general election by simply tailoring your message to

:21:53. > :21:57.the people who come to an event like this.

:21:57. > :22:01.One Labour Party report has identified the commuter belt around

:22:02. > :22:07.London as crucial, if Labour wants to regain power. But here,

:22:07. > :22:17.according to polling, voters have a particularly hostile attitude to

:22:17. > :22:36.

:22:36. > :22:40.unions. When asked, for example, if . The author of that report is the

:22:40. > :22:46.Labour frontbencher, gartreth Thomas. One of the concerns I

:22:46. > :22:50.identified in the pamphlet I wrote is the concerns some in the

:22:50. > :22:53.commuter belt, some of those in the swing voters who were concerned

:22:53. > :22:56.about the way trade unions are operated. That is what Labour has

:22:56. > :23:00.to take into account when we consider our appeal to the

:23:00. > :23:05.electorate going forward. Changing perceptions for Labour

:23:05. > :23:11.might prove difficult. The most recent figures show that the unions

:23:11. > :23:15.gave Labour over 90% of its money. And a new study budgets that the

:23:15. > :23:20.unions had a huge influence on Ed Miliband's election as leader of

:23:20. > :23:24.the party, to the point where, according to academic, it couldn't

:23:24. > :23:27.have been considered a free and fair contest. We don't really know

:23:27. > :23:32.what would have happened under another set of rules. Ed Miliband's

:23:32. > :23:37.team might have fought a different campaign. We do know, and we can be

:23:37. > :23:40.fairly certain, is these features of the electoral college are

:23:40. > :23:43.problematic in the way they operate. They look back to the days of union

:23:43. > :23:48.block votes. That is why we are talking in the research about

:23:48. > :23:51.reinventing the block vote. The way the unions operated gave them the

:23:51. > :23:54.capacity to shape the result in the kind of way they would have done in

:23:54. > :23:58.the past. Tomorrow it is expected that the big public sector unions

:23:58. > :24:03.will announce that they intend to ballot on strike action for later

:24:03. > :24:08.this year. If the strikes do materialise, well it can only put

:24:08. > :24:12.further strain on Labour and its links with the unions.

:24:12. > :24:18.The leaders of the big unions affiliated to the Labour Party,

:24:18. > :24:21.Unison, Unite, the GMB, couldn't drag themselves away from the

:24:21. > :24:27.Congress in central London to be here tonight, but shadow Business

:24:27. > :24:30.Secretary, John Denham could, he's here. Can you support strikes this

:24:30. > :24:34.winter? The important thing is to look at the issues people are

:24:34. > :24:38.arguing about. We know people don't go on strike unless they have real

:24:38. > :24:42.concerns. On the other hand it is rarely the most important question,

:24:42. > :24:45.whether Labour supports the strike. What we need to look at, with

:24:45. > :24:49.public sector pensions for example, is why hasn't the Government got a

:24:49. > :24:52.proper negotiated deal. You think these changes are wrong? Will you

:24:52. > :24:57.support strike action this winter? If we think the changes are wrong

:24:57. > :25:01.and we think the Government isn't negotiating properly, we will say

:25:01. > :25:04.so. I won't get dragged into a secondary issue about whether

:25:04. > :25:08.Labour supports a strike that hasn't even happened. Ed Miliband

:25:08. > :25:12.said the changes are wrong? What he said last summer is he thought the

:25:12. > :25:16.strikes were wrong. He said the way the Government is going about it is

:25:16. > :25:20.wrong. He says there is case for change in pension, but it needs to

:25:20. > :25:25.be properly negotiate. Our role, as the Labour Party, is not to start

:25:25. > :25:28.saying, oh yes, we will or won't support a strike, it is to say let

:25:28. > :25:32.as have proper negotiations between the Government and the unions.

:25:32. > :25:35.There are real issues here for working people, and real issues

:25:35. > :25:38.about pension that is have to be sorted out. The answer to the

:25:39. > :25:43.question, will you support strikes this winter, is, you haven't

:25:43. > :25:47.decided yet? Answer to the question is what we will do is focus on the

:25:47. > :25:50.real issue that affects working people, and the best way of

:25:50. > :25:54.resolving it. The worst thing that can happen. You think that is

:25:54. > :25:57.leadership do you? The worst thing that can happen is for everybody to

:25:58. > :26:01.say what really matters is whether Labour is for origins a strike.

:26:01. > :26:04.What really matters is getting the right result on the issue. That is

:26:04. > :26:10.where we should be, and that is where we will be. When Len

:26:10. > :26:15.McCluskey of Unite, talk about civil disobedience is that

:26:15. > :26:21.legitimate or not? We wouldn't countenance anything outside the

:26:21. > :26:26.law. You would be against civil disobedience? Anything outside the

:26:26. > :26:29.law we are against. We are not against lots of different

:26:29. > :26:32.organisations getting involved. Everybody has to conduct themselves

:26:32. > :26:36.inside the law in this country, otherwise you are in a terrible

:26:36. > :26:40.state. The legal strike you are still undecided about? It is not a

:26:40. > :26:44.matter of being undecided, it is a matter of saying that is not the

:26:44. > :26:48.big issue of the this is a hugele cha eng facing the country, what do

:26:48. > :26:51.do you about public sector pensions, it is of huge concern to millions

:26:51. > :26:54.of people. What the Labour Party says about strikes isn't the big

:26:54. > :26:58.question, it is getting it sorted out. The big question, this is

:26:58. > :27:02.really all about the cuts, isn't it, that is what it is really about?

:27:02. > :27:05.The cuts is a wider issue, it is affecting man public services.

:27:05. > :27:09.Miliband said not all of the cuts would be reversed? That is true.

:27:09. > :27:12.Which ones wouldn't be? What we have said overall is the deficit

:27:12. > :27:18.reduction, the Government wants to get rid of the deficit in three

:27:18. > :27:23.years, we think it should be halved in four years, there is tens of

:27:23. > :27:28.billions of pounds of difference in what we think is a sensible rate of

:27:28. > :27:31.deficit reduction. We won't have a total alternative spending plan, it

:27:31. > :27:35.is impossible. We are honest to the unions, can he can't say every cut

:27:35. > :27:40.should be resisted, there would be no cuts. I just asked you, sorry, I

:27:40. > :27:45.haven't made myself clear, which cuts would not be reversed? You are

:27:45. > :27:49.asking us to go through a list of different things. Just give us two

:27:49. > :27:51.or three? In my area of responsibility I have made it clear

:27:52. > :27:58.that higher education would not have been free of all cuts, but it

:27:58. > :28:04.wouldn't be the �2.8 billion cuts the Tories did. If it was there -

:28:04. > :28:07.if there was a cut in line it would not be the same. How many billions?

:28:07. > :28:10.If you took it in proportion it is well under a billion. That would be

:28:10. > :28:14.in line with the other public spending cuts. We have also said

:28:14. > :28:18.that some of the adult training budget wouldn't have continued

:28:18. > :28:22.under Labour. If you go across the Labour Party every single person,

:28:22. > :28:27.and I'm not going to construct a huge alternative budget here,

:28:27. > :28:30.Jeremy. Why not? In opposition you can't. He made a public pledged to?

:28:31. > :28:35.In opposition you can't construct an entire alternative budget. What

:28:35. > :28:38.Ed Miliband said today. It is hard to know what he believes, that's

:28:39. > :28:42.all? What he said honestly to the unions, of course there would be

:28:42. > :28:46.cuts under Labour, not the same as the Tories, but not enough to say

:28:46. > :28:50.to the trade union movement there would be no cuts. Isn't the traud

:28:50. > :28:54.of the - isn't the truth of the matter he's embarrassed by the fact

:28:54. > :28:57.that the trade unions gave him the leadership of your party? He's

:28:57. > :29:02.proud to have the support of trade union members, not bosses, but

:29:02. > :29:06.members to get elected. He wants to see, as he said today, a country in

:29:06. > :29:14.which trade unions...What Portion of trade unions voted in that

:29:14. > :29:17.election? A disappointingly low percentage. 4%? A lot of the debate

:29:17. > :29:21.about the future of the Labour Party is how the three million

:29:21. > :29:24.individual trade union members who were entitled to vote, who didn't,

:29:24. > :29:27.become more active in the party. Everybody recognises that is a

:29:27. > :29:32.crucial part of refounding the Labour Party. So that people who

:29:32. > :29:34.are very often giving money to the Labour Party, through their

:29:34. > :29:40.voluntary donations, but who don't participate in any other way, are

:29:40. > :29:46.much more part of our future. There is fascinating diplomatic

:29:46. > :29:50.confrontation looming at the United Nations in New York. That and the

:29:50. > :29:55.grumbling appendix of world politics, the Israel Palestine

:29:55. > :29:58.issue has been overshald shadowed by upheavals in the rest of the

:29:58. > :30:04.Arab world. The Palestinians want to be recognised as a state and are

:30:04. > :30:11.going to try for it. The Israelis are horrified and want their US

:30:11. > :30:16.sponsors to fight for them. September brings the world's club

:30:16. > :30:22.of nations to New York. This year's general assembly opening promises

:30:22. > :30:26.to be an unusually fraught affair. The club house is under renovation,

:30:26. > :30:30.and there is bitter division over an application for membership. So

:30:30. > :30:35.it looks like we are about to witness the biggest United Nations

:30:35. > :30:40.drama for many years. Opponents of the Palestinian strategy argue it

:30:40. > :30:43.could tip an already inflamed region over the brink and into war,

:30:43. > :30:48.and it will bring about a confrontation between the United

:30:48. > :30:52.States, the biggest done nar to the organisation, the UN, and it could

:30:52. > :30:57.endanger hundreds of millions in humanitarian funding currently

:30:57. > :31:02.going to the Palestinian Authority. By pushing their case to be full

:31:02. > :31:04.members of the UN, the Palestinians have sought a greater role on this

:31:04. > :31:09.world stage. They could get additional political and legal

:31:09. > :31:15.rights out of it too. That has brought American political heavy

:31:15. > :31:20.weights out in opposition, people like Colin Powell. Ultimately it

:31:20. > :31:25.will have to be a peace process that provides a Palestinian state

:31:26. > :31:30.that is prepared to live side-by- side in peace with Israel. Does the

:31:30. > :31:33.vote coming up at the UN on Palestinian independence help or

:31:33. > :31:38.hinder? My initial reaction is I don't see how that helps the

:31:38. > :31:42.process. And so, I'm not sure if that is the side thing to be doing

:31:42. > :31:47.now, if it doesn't help the process. If it doesn't bring the two sides

:31:47. > :31:51.closer to one another, to begin negotiation, I'm not sure how

:31:51. > :31:55.helpful it is. The Palestinian President, Mahmoud Abbas, has been

:31:55. > :31:59.driving the UN membership bid. It offers him a chance to take his

:31:59. > :32:04.place with world leaders. But it also risks large amounts of US aid.

:32:04. > :32:07.So why do it now? There is the big sense of frustration within the

:32:07. > :32:13.Palestinian political classes, as well as the general at large. Add

:32:13. > :32:18.to that, the second factor, the Arab Spring, and the demand by many

:32:18. > :32:22.Arab citizens for their Governments to be more active, to show result,

:32:22. > :32:26.have really created a situation where Abbas thought he needed to do

:32:26. > :32:31.something significant, it seemed the UN rout is the only available

:32:31. > :32:36.at the moment. Supporters of Israel, predictably enough, are opposing

:32:36. > :32:41.the move? The best outcome, the soft landing, is a better-worded

:32:41. > :32:46.resolution, a resolution that can enable us to see that there are two

:32:46. > :32:50.states in homeland for the Jewish people and Israel's democratic

:32:50. > :32:52.citizens, and a homeland for the Palestinians, but it is done

:32:52. > :32:56.through negotiations and mutual respect.

:32:56. > :33:01.Nobody knows exactly what strategy the Palestinians will pursue. But

:33:01. > :33:05.there is an underlying recognition that a move in the Security Council,

:33:05. > :33:09.triggering a US veto, might not be in either side's interest. The US

:33:09. > :33:13.and Israel, if they can, will still stop this vote, but it is likely to

:33:14. > :33:18.go ahead, and it would happen here in the general assembly, where the

:33:18. > :33:21.Palestinians can usually expect a large majority. They will craft

:33:21. > :33:26.their diplomatic language carefully, possibly acknowledging the two-

:33:26. > :33:32.state solution approach to the Middle East. And accepting a status

:33:32. > :33:37.below that of full national state ranking here. All the tension then

:33:37. > :33:41.will swing to the Middle East and what happens the day after.

:33:41. > :33:47.The weekend storming of the Israeli Embassy in Cairo shows the

:33:47. > :33:50.pressures now upon leaders in the region.

:33:50. > :33:54.At an Arab League meeting in the city, the Turkish leader has argued

:33:54. > :33:59.for a tough line on the UN vote. TRANSLATION: Recognition of a

:33:59. > :34:02.Palestinian state is the only way forward, it is not an option, but

:34:02. > :34:06.an obligation. We should all support the rightful and legitimate

:34:06. > :34:09.struggle of the Palestinian people together, and with all our might,

:34:09. > :34:12.God willing, before this month is through, we will have the

:34:12. > :34:16.opportunity to see Palestine at a very different status at the United

:34:17. > :34:20.Nations. Some fear now that the UN drama

:34:20. > :34:25.could shift the dynamics of the Arab Spring. With all those

:34:25. > :34:33.demonstration that is have been going on in Cairo, and Damascus and

:34:33. > :34:37.elsewhere, so far the US has not an central. After this, the American

:34:37. > :34:42.veto or strong American opposition, that anti-American sentiments will

:34:42. > :34:46.come to the forefront. As a by- product of this, it will become

:34:46. > :34:50.more difficult for Arab Governments that want to co-operate with the

:34:50. > :34:54.United States to do so. As delegates convene for the

:34:54. > :34:59.general assembly, all sides are using brinkmanship, how the

:34:59. > :35:04.Palestinians will push their case to upgrade their status here, is

:35:04. > :35:08.still unclear. But even those who support their bid accept that its

:35:08. > :35:14.effects will be unpredictable, and it could easily produce a crisis in

:35:14. > :35:19.the Middle East. What are the Americans going to do?

:35:19. > :35:24.Well, what they are doing is trying to forestall this at the last

:35:24. > :35:27.minute. Diplomats here had been expecting that as early as this

:35:27. > :35:30.evening a Palestinian draft resolution would appear, or

:35:30. > :35:34.possibly tomorrow, they would then show their hand, where they go in

:35:34. > :35:37.the Security Council, or the general assembly route, exactly

:35:38. > :35:41.what kind of language were they using. The Americans have announced

:35:41. > :35:47.this afternoon, in order to get ahead of that, that two envoy,

:35:47. > :35:50.Dennis Ross and David Hale are going to the region. I think the

:35:50. > :35:54.point is to stop the Palestinians introducing their draft before

:35:54. > :35:57.speaking to the envoys, even if they can't stop it, they can slow

:35:57. > :36:01.it down. They are trying to buy time, and if they could they could

:36:01. > :36:06.stop the vote going ahead. If they fail to do that, just simply trying

:36:06. > :36:14.to make the terms of any resolution less problematic from a US

:36:14. > :36:19.perfective. So Israel is looking pretty isolated? Yes, it is

:36:19. > :36:24.striking that until comparatively recently Israel relied on tacit or

:36:24. > :36:26.sometimes even explicit diplomatic support from a number of Arab and

:36:26. > :36:32.regional countries, which were considered to be supportive, pro-

:36:32. > :36:36.western, if you like. Turkey and Egypt, are the key regional players,

:36:36. > :36:41.that have suddenly shifted position in this. The desire to meet public

:36:41. > :36:44.expectations that have been raised by the Egyptian revolution, is now

:36:44. > :36:48.driving a lot of policy pronouncements from Egypt and

:36:48. > :36:51.turkey. They are each trying, if you like, to put themselves at the

:36:51. > :36:55.head of popular feeling in the Arab world. This is one of the reasons

:36:55. > :36:58.why it is such a dangerous cocktail and why the Americans could become

:36:58. > :37:03.very exposed diplomatically if they are seen to shoot this down here at

:37:03. > :37:09.the UN. Give me the child and I will give

:37:09. > :37:15.you the man, St Francis, the founder of the Jesuit movement is

:37:15. > :37:18.said to have said. Religious movements around the world try to

:37:18. > :37:24.shape the impressionable finds with fables and stories, how the world

:37:24. > :37:26.began, how the first humans came and what rainbows are. The world's

:37:26. > :37:30.most celebrated atheist, Richard Dawkins gives a counter blast of

:37:31. > :37:34.fact. His new book, The Magic Of Reality, aims directly at children,

:37:34. > :37:38.teaching them how to replace myth with science. It is illustrated by

:37:38. > :37:41.the graphic artist and film director, Dave McKean.

:37:41. > :37:45.Of course, no-one really believes that it would be possible to turn a

:37:45. > :37:49.pumpkin into a coach, but have you ever stopped to consider why such

:37:49. > :37:53.things would be impossible. You probably haven't, because from

:37:53. > :37:59.our earliest years we learn to suspend disbelief.

:37:59. > :38:07.And that, apparently, is also how we condition impressionable brains

:38:07. > :38:12.to absorb religious hog wash. the creation myth of the Hebrew

:38:12. > :38:15.tribe of the desert, the God Yaweh created light on the first six days

:38:15. > :38:19.of his creation, but not the sun until the fourth day, where the

:38:19. > :38:24.light came from on the first day before the sun and stars existed,

:38:24. > :38:29.we are not told. Knocking down the scientific accuracy of millennia

:38:29. > :38:35.old stories isn't very hard. Rainbows, earthquakes, the origins

:38:35. > :38:39.of humanity, the origins of the universe itself, are all explained

:38:39. > :38:45.in ways that a 10-year-old might follow, but a five-year-old might

:38:45. > :38:48.not. According to the modern version of the big bang model, the

:38:48. > :38:52.entire observable universe exploded into existence between 13 and 14

:38:52. > :38:57.billion years ago. Some scientists will tell you that time itself

:38:57. > :39:02.began in the big bang, we should no more ask what happened before the

:39:02. > :39:06.big bang than we should ask what is north of the North Pole. But there

:39:07. > :39:10.in lies Richard Dawkins' problem. Even with him setting them up as

:39:10. > :39:14.aunt Sally's, the myths remain the better stories, carrying an

:39:14. > :39:19.imaginative charge that makes nonsense easier to understand than

:39:19. > :39:24.fact. Fairytales of whatever world religion retain an untarnishable

:39:24. > :39:30.beauty, more easily followed by a small and impressionable Tasmanian

:39:30. > :39:35.child, for example. A God called Moin ee was defeated by a rival God

:39:35. > :39:41.in a terrible battle up in the stars. Before he died he wanted to

:39:41. > :39:47.give a last blessing to his final resting place, he decided to create

:39:47. > :39:51.humans, but he forget to give them knee, he absent mindedly gave them

:39:51. > :39:55.big tails like kangaroos. They say the devil has all the best tune,

:39:55. > :40:01.but the religious elders have most of the best stories.

:40:01. > :40:05.Richard Dawkins is here, you seem to implicitly believe in this, or

:40:05. > :40:10.explicitly believe that rationalism is some how disadvantaged, do you

:40:10. > :40:15.really think that is? Nor am I knocking myths, I just think that

:40:15. > :40:20.science is better. Better stories I deny that the myths have the best

:40:20. > :40:24.tunes and the best stories. deny it? Yes. I actually think that

:40:24. > :40:30.science is so spellbinding. What have you got that beats the story

:40:31. > :40:34.of the kangaroo? Evolution. taking evolution, you really think

:40:34. > :40:39.that your version, you are very clear account of where our

:40:39. > :40:43.ancestors came from, which ends up in a not very attractive looking

:40:43. > :40:47.fish 185 million generations ago, as opposed to the creation myth in

:40:48. > :40:51.the Bible, that God takes a handful of dusts and breathes life into it,

:40:51. > :40:55.takes one of Adam's ribs and creates a woman. You think your's

:40:55. > :41:00.is more poetic? No question about it, absolutely. It is wonderfully

:41:00. > :41:03.poetic, when you think about it, here we are, we started off on this

:41:03. > :41:08.planet, this fragment of dust spinning around the sun, and in

:41:08. > :41:13.four billion years, we graduemly changed from bacteria into us, that

:41:13. > :41:17.is a spellbinding story. Do you accept that it is slightly more

:41:17. > :41:21.difficult for a child to comprehend? That I'm not sure about.

:41:21. > :41:27.It is conventional not to teach evolution until a later age, I

:41:27. > :41:31.think it could be taught at a younger age. But 185 million

:41:31. > :41:34.generations, that is a difficult thing to get your head around as a

:41:34. > :41:42.child? You have to employ careful strategies to do that, but I think

:41:42. > :41:45.it can be done. Now, nobody believes that Lot's wife for

:41:45. > :41:49.example was really turned to a pillar of salt, and you soon grow

:41:49. > :41:52.out of belief in Father Christmas and the tooth fairy, are you saying

:41:53. > :41:57.these things should never be taught? No, I'm not actually. There

:41:57. > :42:01.is a great value in training the imagination to be imaginative. So

:42:01. > :42:05.children love to make believe, for example, I did myself, I'm sure you

:42:05. > :42:13.did. It is a wonderful part of growing up, to play games of make

:42:13. > :42:17.believe. And part of it is comfort, isn't it, if you are told, I don't

:42:17. > :42:21.want to get too much into religion. If you are told you are a unique

:42:21. > :42:26.creation and made in God's image and loved, as opposed to the

:42:26. > :42:31.scientific image that you are a receipty insubstantial speck in the

:42:31. > :42:34.Cosmos, one is comforting, one is slightly alarming, isn't it? One is

:42:34. > :42:38.false and one is true, and it is rather important to whether it is

:42:38. > :42:42.alarming or not to get what is true. You can make up any number of

:42:42. > :42:48.stories that are comforting, but the truth has some value as well.

:42:48. > :42:52.But you accept the force, the imaginative force of comfort?

:42:52. > :42:57.wouldn't stress comfort, I accept the imaginative force of certain

:42:57. > :43:02.myths, and I throw in the juddaiyo Christian myth along with the myths

:43:02. > :43:07.of the Tasmanians and so on, I genuinely think science is more

:43:07. > :43:11.exciting and more poetic. They perform a social function too,

:43:11. > :43:15.particularly the religious myths, in that they tend to make us, as

:43:15. > :43:21.societies, hang together. You don't believe that, do you? It is

:43:21. > :43:25.certainly, the basis of our culture, and our legal system? It is true

:43:25. > :43:31.that historically religions have been the basis of our culture, but

:43:31. > :43:34.it is also true they have been the basis of plenty of things not very

:43:34. > :43:38.desirable. As for comfort, once again, I think I would come down to

:43:38. > :43:42.what is true, and say what I would really value is the truth rather

:43:42. > :43:48.than what is comforting, and the truth rather than what necessarily

:43:48. > :43:55.holds societies together. This book is intended for children what, 11,

:43:55. > :44:00.12? 12 and up to 100. All adults. Why can't you introduce children to

:44:00. > :44:05.reality at a younger age than that? I would love to do that. Maybe my

:44:05. > :44:10.next book will. This book was field tested down to about eight or seven,

:44:10. > :44:15.and they got it with help from teachers. I would like to think

:44:15. > :44:19.that parents could perhaps read bits of this book to seven-year-

:44:19. > :44:25.olds, and 11 and 12-year-olds I hope will love to read it

:44:25. > :44:27.themselves. This is the equivalent at an entire metaphysical level to

:44:27. > :44:32.telling children that Father Christmas doesn't exist, isn't it?

:44:32. > :44:40.I think that the truth is wonderful, I think the myths are fun. The book

:44:40. > :44:45.is full of myths. Which is your favourite myth? I like the one

:44:45. > :44:51.about Dromadena, it is very abusing, some of the Aztec ones are very

:44:51. > :44:55.funny as well. Do you find any of them personally affecting, you

:44:55. > :44:59.think, gosh what a wonderful story? Genesis is, as a story, as a myth,

:44:59. > :45:05.yes. And I mean, as long as you don't think it is true. The trouble

:45:05. > :45:09.is 40% of the American people think it is literally true. They probably

:45:09. > :45:12.think Lot's wife was turned into a pillar of salt as well for that

:45:12. > :45:17.matter. Do you really care that there are a lot of stupid people

:45:17. > :45:21.around? I do, I really do. I care that children are being misled by

:45:21. > :45:25.those stupid people. Why? Because I think that children deserve to know

:45:25. > :45:30.what's true and what's wonderful about the world into which they

:45:30. > :45:36.have been born. It really is true, and it really is wonderful, and it

:45:36. > :45:39.is such a crying shame if children are denied that by ignorant and

:45:40. > :45:43.stupid adults as you have described them. Richard Dawkins, thank you.

:45:43. > :45:47.Tomorrow morning's front pages now. The Financial Times here has a

:45:47. > :45:51.picture of Angela Merkel and the news that apparently she's going to

:45:51. > :45:56.try to suppress all talk that the Greeks are going to default on

:45:56. > :46:06.their debt. The independent has more on phone hacking, I think.

:46:06. > :46:13.

:46:13. > :46:17.That's it. The British artist Richard Hamilton died today at the

:46:17. > :46:22.age of 89, he produced some terribly well known paintings,

:46:22. > :46:32.sculptors and kolages, and known for a long time as the father of

:46:32. > :47:06.

:47:06. > :47:09.Still quite windy out there at the moment. The winds died down further

:47:09. > :47:13.overnight, and light winds in the south tomorrow, with the spells of

:47:13. > :47:18.sunshine, it should feel pleasant here. Cloudy skies across northern

:47:18. > :47:21.England, particularly to the west of the Pennines, where there will

:47:21. > :47:25.be light drizzle. In the east not a lot of sunshine. Clouding across

:47:25. > :47:28.Lincolnshire and parts of the Midlands, after a sunny start. Much

:47:28. > :47:31.of East Anglia and the southern counties of England will have a

:47:31. > :47:35.fine day. Spells of sunshine and the winds lighter than they have

:47:35. > :47:38.been. It will feel a bit warmer. Sunny spells across most of South

:47:38. > :47:42.Wales, and North Wales will see a change through the day. Clouding

:47:42. > :47:47.over with some rain trickling southwards through the Irish Sea.

:47:47. > :47:50.That rain is pulling away through Northern Ireland, after a damp

:47:50. > :47:53.start, sunshine here through the afternoon. Brighter too across

:47:53. > :47:57.central and southern parts of Scotland. In the far north it will

:47:57. > :48:02.be wet and still here very windy. The winds will start to ease by

:48:02. > :48:06.Thursday. In fact, Thursday promises to be a fine day for much

:48:06. > :48:09.of the country, an autumnal feel, it will start cold on Thursday

:48:09. > :48:13.morning, there will be some mist and fog patches. They should clear

:48:13. > :48:17.and Thursday then will bring most places some spells of sunshine.

:48:17. > :48:19.Certainly for the majority it will be a dry day. After that cold start,

:48:19. > :48:22.temperatures eventually in the sunshine reaching the mid-to high