11/01/2012 Newsnight


11/01/2012

In-depth investigation and analysis of the stories behind the day's headlines with Gavin Esler.


Similar Content

Browse content similar to 11/01/2012. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Tonight, the battle to prevent the break-up of Britain, has now begun.

:00:07.:00:10.

The Prime Minister says he cares passionately about keeping the

:00:11.:00:14.

country together, and insists that Westminster has the legal right and

:00:14.:00:19.

duty. To call the shots over the referendum on independence. We will

:00:19.:00:23.

ask Scotland's First Minister if he is so confident of winning the vote,

:00:23.:00:31.

why can't compromise with Cameron. The new bad boy of Europe is told

:00:32.:00:37.

its economic policies are sustainable and it is drifting into

:00:37.:00:41.

authoritarianism. Hungary's row with Europe could

:00:41.:00:45.

shake the very foundations of the European Union itself.

:00:45.:00:49.

One man's murder raises new questions of foreign intervention

:00:49.:00:54.

in Iran. A fourth nuclear scientist has been

:00:54.:00:58.

assassinated in Tehran, might this be one case where Iranian claims of

:00:58.:01:08.
:01:08.:01:09.

an Israeli plot are quite rightment Later:

:01:09.:01:12.

Newsnight proudly presents, in premier vision, David Cameron's

:01:12.:01:18.

quest to mould the movie business. We will be discussing how to fund a

:01:18.:01:25.

hit movie with writer producer, David Baddiel, at producer bridge

:01:25.:01:32.

gent Jones Diary, Jonathan Cavendish.

:01:32.:01:35.

Good evening, there was a rare moment of agreement between the

:01:35.:01:38.

Prime Minister and the leader of the opposition today, both David

:01:38.:01:42.

Cameron and Ed Milliband said that keeping Scotland in the UK is good

:01:42.:01:47.

for all of us. That, of course, is not how it is seen within the

:01:47.:01:49.

Scottish Government, where the First Minister, Alex Salmond,

:01:49.:01:53.

suggested Westminster politicians butt out, of what he calls

:01:53.:01:56.

interference in Scotland's affairs. MrLe Salmond told Newsnight tonight

:01:56.:01:59.

of his of confidence in winning the independence referendum when it

:01:59.:02:07.

comes. Getting this thing painted was long

:02:07.:02:12.

seen as an impossible task, the vital rail link between Edinburgh

:02:12.:02:16.

and the north-east, defied all efforts to keep it looking the part.

:02:16.:02:20.

But they persevered, just as the never say never attitude of

:02:21.:02:25.

Scotland's nationalist leader might be paying off. Indeed, no paint job

:02:25.:02:29.

in the world could conceal Alex Salmond's trade mark grin, as

:02:29.:02:34.

Scottish independence went to the top of the political agenda. We, on

:02:34.:02:38.

this side of the House. The subject loomed large in the first Prime

:02:38.:02:41.

Minister's Questions of the new year. With the Labour leader

:02:41.:02:46.

possibly trying out slogans for the coming pro-union campaign. We are

:02:46.:02:52.

stronger together, and weaker apart. The Prime Minister was all obliging,

:02:52.:02:58.

temporary powers would be giflted to Holyrood -- gifted to hollyed

:02:58.:03:01.

road, allowing the referendum to go ahead. The legal clarification an

:03:01.:03:05.

attempt to put Mr Salmond on the spot. There have been too many in

:03:05.:03:10.

the SNP happy it talk about the process, they don't want to talk

:03:10.:03:12.

about the substance. I sometimes feel when I listen to them it is

:03:12.:03:18.

not a referendum they want, it is a neverendum.

:03:18.:03:23.

Of course, David Cameron won't so lightly dismiss the SNP's leader,

:03:23.:03:27.

who swept to power in last year's Scottish election, under a system

:03:27.:03:33.

set up to prevent an outright majority. Such an opponent is being

:03:33.:03:36.

treated seriously here, I'mle told it is because the issues involved -

:03:36.:03:41.

- I'm told because the issues are involved are so important that

:03:41.:03:44.

Chancellor George Osborne is spearheading plans to keep the UK

:03:44.:03:48.

together. His involvement also reflects the fact that senior

:03:49.:03:52.

Westminster Tories, don't exist north of the border.

:03:52.:03:57.

Indeed, they have been as close to extinction as these beasts, newly

:03:57.:04:04.

resident at bed are you ra Zoo, the great panned -- at Edinburgh Zoo,

:04:04.:04:08.

the great pandas are pulling in the crowds.

:04:08.:04:13.

Alex Salmond is hoping the referendum in 2014 will help voters

:04:13.:04:17.

flock to his cause. He's also coming out against the

:04:17.:04:21.

Thatcherism view that Tories know best. The Tory Government knows it

:04:21.:04:25.

can't look like it is dictating terms to Scotland. What it will be

:04:25.:04:30.

doing is using the consultation process, that has just been launch,

:04:30.:04:32.

to convince voters they have far more to lose than gain by

:04:32.:04:37.

independence. They will be targeting the SNP's

:04:37.:04:42.

wish to put the option of devolution max to the voters. This

:04:42.:04:45.

would involve greater powers for Holyrood, short of separation.

:04:45.:04:50.

Westminster would like to see a simple yes or no vote, Scotland in

:04:50.:04:56.

or out of the UK. But would a referendum actually be legal? The

:04:56.:05:00.

two sides don't agree. It may be a couple of years if Alex Salmond

:05:01.:05:04.

sticks to his plan, before he introduces his bill into the

:05:04.:05:09.

Scottish Parliament, and we know the wording of his proposeded

:05:09.:05:13.

referendum question. Only then can that -- proposed referendum

:05:13.:05:17.

question. Only then can that be referred to the courts. If the UK

:05:17.:05:22.

officers stick to their legal advice, they will be obliged to cha

:05:22.:05:29.

eing it. A bit like the iterimably unpainted bridge, there are many

:05:29.:05:38.

decisive factors in the outcome the UK is - that are being sought.

:05:38.:05:43.

There is a preference for sterling to the euro. Would the banking

:05:43.:05:46.

crisis need an interference. There are a whole set of questions about

:05:47.:05:50.

revenues, who owns the North Sea oil, lawyers could be busy for

:05:50.:05:54.

decades arguing about the division of the spoils. The current union

:05:54.:05:59.

between Scotland and England has lasted 300 years. After such a long

:05:59.:06:02.

marriage, separation will be difficult, something a Royal

:06:02.:06:05.

Commission is need -- some think a Royal Commission is needed to

:06:05.:06:10.

decide how the assets might be split. People haven't taken the

:06:10.:06:12.

option of real Scottish independence seriously enough in

:06:12.:06:17.

the past, the pieces of work that we need to see don't exist. I

:06:17.:06:21.

haven't seen a feasiblilty study on the cost of moving our nuclear

:06:21.:06:24.

weapons somewhere else in the UK, how much that would cost. Even on

:06:24.:06:27.

one question, we don't have any of the details we need to know about

:06:27.:06:32.

what independence would mean. Scotland might surprise you.

:06:32.:06:37.

Whether you are after dramatic scenery, or dramatic scenes. This

:06:37.:06:41.

TVad, launched later this week, will mark Scotland's year of

:06:41.:06:46.

culture and creativity. But it is hard fact that is will now be

:06:46.:06:49.

occupying both sides of the referendum campaign. Not least the

:06:49.:06:52.

polling evidence, which has consistently shown the Scots won't

:06:52.:06:58.

vote for independence. The SNP claims that's changing. I have seen

:06:58.:07:02.

an open mindedness that I have never, ever seen before. I think it

:07:02.:07:07.

is incredible. People will willing to listen and be persuadeded. We

:07:07.:07:10.

have seen people move in all the polls and even social attitude

:07:10.:07:13.

surveys are showing that people are moving away from opposition to

:07:13.:07:19.

independence, to open mindedness, or for full square independence.

:07:19.:07:28.

Last month, the Christmas present for Scotland, the Forth Bridge was

:07:28.:07:33.

finally repaint. Satisfaction is being felt in Downing Street too,

:07:33.:07:36.

whatever battles lie ahead, Alex Salmond naming a referendum date,

:07:36.:07:39.

means the debate about independence can truly begin.

:07:40.:07:43.

Just before we came on air, I spoke to Scotland's First Minister, Alex

:07:43.:07:48.

Salmond. First Minister, is it an issue of principle with you that

:07:48.:07:52.

devo max, a fiscal independence, as it is called, more devolution

:07:52.:07:58.

should also be on the ballot for yes or no to independence? No, our

:07:58.:08:00.

issue of principle is that independence will be on the ballot

:08:00.:08:06.

paper, yes or no, but what we have said, we cannot see any reason for

:08:06.:08:10.

ruling out, at this stage, what is a perfectly legitimate strand of

:08:10.:08:13.

opinion in Scotland, and we are in the business of being inclusive and

:08:13.:08:17.

including other strands of opinion, not excluding them like the Tory

:08:17.:08:23.

Government in Westminster. It is seen as a fallback position for you,

:08:23.:08:26.

because you know independence itself is not particularly popper

:08:26.:08:32.

later. More devolution is popular, with -- popular, more devolution is

:08:32.:08:36.

popular, it is your second choice and what you have got? Or David

:08:36.:08:39.

Cameron is frightened of having it on the ballot paper because he

:08:39.:08:43.

thinks it will pass, or have the Scottish Parliament organise our

:08:43.:08:48.

referendum, for which we have a mandate, in 2014 because he thinks

:08:48.:08:51.

independence will pass. They may well be frightened of a range of

:08:51.:08:54.

things. I know independence is getting further support in the

:08:54.:08:57.

polls tomorrow. I'm very confident we can win an independence

:08:57.:08:59.

referendum. Why doesn't Downing Street just let the Scottish

:09:00.:09:05.

Parliament get on with it, and have a referendum, and have a result,

:09:05.:09:08.

and people and politicians can follow the will of the people.

:09:08.:09:12.

will of the people, are you possibly in danger of misreading

:09:12.:09:15.

this mandate, it is a mandate clearly for you to ask people what

:09:15.:09:18.

they think about independence. But it is certainly not a mandate to

:09:18.:09:23.

ignore the Westminster Government, or the Prime Minister of the UK, is

:09:24.:09:28.

it? After the election last year, David Cameron was quite explicit,

:09:28.:09:32.

he said the Scottish Parliament, the SNP have won a mandate to

:09:32.:09:39.

organise a independence referendum, and the Westminster Government

:09:39.:09:43.

won't disappear. They said to let the mandate be carried forward to

:09:43.:09:45.

the Scottish Parliament. It it is the Prime Minister trying to

:09:45.:09:48.

rewrite the rools but trying to pull the strings of -- rules by

:09:48.:09:53.

trying to pull the strings of the Scottish referendum from

:09:53.:10:01.

Westminster. The last time a London politician thought she new best in

:10:01.:10:07.

Scotland, it didn't have a great result for Scottish MPs. You are he

:10:07.:10:11.

can sueding a great deal of confidence about win -- he can

:10:11.:10:17.

sueding a great deal of confidence about winning the referendum, why

:10:17.:10:22.

not just have a yes, no debate on independence? We said we would

:10:22.:10:25.

publish the consultation document in a few weeks time. We will give

:10:25.:10:28.

the community of Scotland an opportunity to comment on what they

:10:28.:10:33.

would like, as well as the SNP Government, what they would like.

:10:33.:10:38.

We will legislate next year to have the referendum in 2014 in a proper

:10:39.:10:42.

and orderly manner. The last referendum Downing Street organised,

:10:42.:10:46.

was the AV referendum, that was organised in a to thelally

:10:46.:10:52.

disorganised manner. With -- totally disorganised manner, and

:10:52.:10:57.

the liberals were truly kippered by the Tories. I'm not Nick Clegg.

:10:57.:11:03.

the issues of the date, you said in 2014, does it really matter the

:11:03.:11:06.

date of 2014, in other words, are you open in this consultation

:11:07.:11:11.

period, during which, undoubtedly you will hear from Michael Moore,

:11:11.:11:14.

the Scottish Secretary, are you open to changing that date?

:11:14.:11:17.

these things must be decided by the Scottish Parliament. I'm willing to

:11:17.:11:21.

talk to the Prime Minister, of course, and I will put forward the

:11:21.:11:25.

view, look our point of principle, there just has to be a referendum

:11:25.:11:27.

built and made in the Scottish Parliament for the Scottish people.

:11:27.:11:31.

Because the people best able to do that, are the people who have a

:11:31.:11:34.

mandate in the Scottish Parliament, and then it will be decided on by

:11:34.:11:37.

the people Scotland. The people best able to decide the future of

:11:37.:11:41.

had country, are the people who live here. I notice that tomorrow

:11:41.:11:45.

morning's Times has a story that Downing Street is warning that an

:11:45.:11:49.

independent Scotland might have to join the euro as a price of

:11:49.:11:56.

independence. What do you make of that? Stuff and nonsense, Sweden is

:11:56.:11:59.

a country which had accession to the European Union after these

:11:59.:12:03.

rules, and of course, Sweden is not a member of the euro, furthermore

:12:03.:12:06.

Scotland wouldn't be applying for membership of the European Union,

:12:06.:12:10.

we are already in the European Union. It would be up to the people

:12:10.:12:17.

of Scotland. The euro currency, is it your aspiration to join that, or

:12:17.:12:21.

is the pound good enough for you at the moment. Will the pound be good

:12:21.:12:26.

enough for you in the foreseeable future? We would stay with sterling

:12:26.:12:30.

until the people Scotland would decide in a referendum. A position

:12:30.:12:35.

not dissimilar to other parties in these islands. A final thought,

:12:35.:12:38.

quite clear from what Michael Moore, the Scottish Secretary is saying,

:12:38.:12:42.

and David Cameron in the Commons today, that they believe under the

:12:42.:12:45.

1998 Scotland Act, they are effectively right. It is not

:12:45.:12:48.

interfering, it it is their duty and right to discuss this with you

:12:48.:12:54.

in the way they are proceeding. Will you publish your legal advice,

:12:54.:12:58.

which seems to suggest something slightly different? They haven't

:12:58.:13:02.

published the legal advice, just said what they think it is. The

:13:02.:13:07.

Professor of Constitutional Law at Edinburgh University, has agreed

:13:07.:13:12.

with our legal opinion on these matters, and a consultant on the

:13:12.:13:15.

referendum the Scottish Parliament has sway. I'm prepared to talk to

:13:15.:13:19.

anybody about these things, as long as we are not dictate to, we are

:13:19.:13:22.

not told what to do, we are not having our strings pulled from

:13:22.:13:27.

London. We are not going to be bullied and intimidate. We have a

:13:27.:13:30.

mandate to conduct and hold a democratic referendum in Scotland

:13:30.:13:36.

the that is exactly what we will do. If it is to be done as a legally

:13:36.:13:40.

binding referendum, so be it. But not with strings attach, not

:13:40.:13:44.

Downing Street telling us who and how people will vote, and how it

:13:44.:13:46.

will be organised. These things will be built and determined in

:13:46.:13:48.

Scotland. Thank you very much for joining us.

:13:48.:13:52.

The European Union has a new problem child tonight, Hungary, the

:13:53.:13:58.

EU is thinking of withholding funds for what it sees as Hungary's

:13:58.:14:01.

failure to get to grips with economic problems, and fears the

:14:01.:14:05.

country is sliding away from the rule of law and towards right-wing

:14:05.:14:09.

populisim. We're in Budapest now. What has been the reaction to these

:14:09.:14:14.

threats from the EU? The EU threat, primarily, centres on Hungary

:14:14.:14:18.

breaching the budget rules, the 3% deficit rule. They have the power,

:14:18.:14:22.

if that is the case, to withdraw structural fund, or withhold them.

:14:22.:14:27.

That would be serious for Hungary, it it is about 2% of GDP, and more

:14:27.:14:30.

or less the only source of funding for businesses at the moment. On

:14:30.:14:35.

top of that, this is another big stick, that is the IMF, currently

:14:35.:14:39.

grilling one of the Hungarian ministers in Washington, and it is

:14:39.:14:43.

going to impose more austerity on the country, as a price for what

:14:43.:14:47.

the markets see as the inevitable bailout this country will need. The

:14:47.:14:50.

reaction has been anger by the far right. The Government refuseded to

:14:50.:14:57.

even acknowledge it, but the party -- refused to even acknowledge it,

:14:57.:15:00.

but the Fidesz Party called for a demo in two weeks time. Most in the

:15:00.:15:05.

markets think it will end up with a climb-down, but it is damaging for

:15:05.:15:10.

the Prime Minister, who has staked his whole future on defying the

:15:10.:15:15.

authorities. Given Hungary's dire economic situation, it could

:15:15.:15:19.

default and it could have a knock- on effect for other countries in

:15:19.:15:22.

Europe? There is feeling the Government is toying with theed

:15:22.:15:28.

idea of defaulting, they have studied Iceland and Argentina, that

:15:28.:15:32.

is something some Government people are briefing, that if we go we take

:15:32.:15:36.

down the whole Europe. They are not big enough to do that. The bigger

:15:36.:15:40.

problem is they are in breach so much else, says the EU, in terms of

:15:40.:15:44.

politics, in terms of the rule law, in terms of the rise of the far

:15:44.:15:48.

right, that really is the biger cultural and political background

:15:48.:15:58.
:15:58.:16:00.

to the crisis. As I have been Hungary is a country where

:16:00.:16:09.

austerity start early and never stopped. Its currency is collapsing.

:16:09.:16:15.

Its population in the sixth year of crisis, and weary of it. Now, it is

:16:15.:16:20.

dawning on them that the Government they elect to sort things out is

:16:20.:16:27.

becoming the pariah of Europe. Today Hungary's parliament was told

:16:27.:16:31.

that major laws it has just passeded might be illegal, and its

:16:31.:16:37.

budget is in breach of the EU rules. In the space of 18 months, the

:16:37.:16:41.

Prime Minister has achieved a lot. He has introduceded a flat tax,

:16:41.:16:44.

which handed money to the upper- class, but put a hole in the

:16:44.:16:48.

country's budget. To fill the hole he nationaliseded the private

:16:48.:16:53.

pension scheme. To prevent a challenge to that, he neutralised

:16:53.:16:57.

the constitutionlal court, and he has changed the law to give himself

:16:57.:17:00.

a near permanent majority here in the national parliament. And then

:17:00.:17:05.

he has asked the IMF for $20 billion.

:17:05.:17:09.

The Prime Minister was elect in 2010 on a platform of no more

:17:09.:17:14.

austerity, but to deliver that, he has had to impro-advise to tax the

:17:14.:17:20.

banks, large companies, to improvise, to tax the banks, large

:17:20.:17:25.

companies. Last week tens of thousands of Hungarians took to the

:17:25.:17:30.

streets, support what they see as the Prime Minister's coup, NGOs,

:17:30.:17:34.

youth, the usual noises in protests, these voices find little support

:17:34.:17:39.

within the system. This man a leading MP in Hungary's

:17:39.:17:47.

Green Party, he reflects a generation in despair. I think that

:17:47.:17:56.

the Prime Minister more or less left, or lost reality. He is

:17:56.:18:01.

closeded into a very small circle of adviser, and he really doesn't

:18:01.:18:06.

understand what's going on. Elect to fight on pollution and

:18:06.:18:12.

climate change, Hungary's youngest party now has to teach its

:18:12.:18:15.

political elders orthodox economics. He they turned their attention to

:18:15.:18:21.

the national bank, the Central Bank, which has a reserve of 35 billion

:18:21.:18:30.

euros. Half of it would be enough to finance the state budget in 2012.

:18:30.:18:36.

It is extremely dangerous, the reserve of the national bank is the

:18:36.:18:41.

last anchor, or the last backing of the Hungarian authority, if they do

:18:41.:18:51.

that, I think there is no further stop before the bankruptcy.

:18:51.:18:59.

But it is not just money at stake. Club Radio, is the only radio

:18:59.:19:02.

station openly critical of the Government, and reported the

:19:02.:19:06.

protests in depth. Now its license has been revoked. Meanwhile, here

:19:06.:19:10.

at the state TV station, some journalists are on hunger strike

:19:10.:19:15.

after one of the Government's critics had his face blur out of a

:19:15.:19:19.

news report, Soviet-style. I have been working in the public media

:19:19.:19:23.

for the last two decades. I must say that was always a kind of

:19:23.:19:28.

influence trying to meddle in the things the public media, from any

:19:28.:19:31.

Governments we had. But what happened since the change of

:19:31.:19:35.

Government, they are not just trying to make favourable reporting

:19:35.:19:39.

in the public media for the Government, but they are even

:19:39.:19:43.

distorting factsment they are falsifying reports. That is facts.

:19:43.:19:48.

They are falsifying reports, that is the upper limit of the

:19:48.:19:52.

thresholds. The people werele sold the idea that Europe meant

:19:52.:19:56.

prosperity. Despite an export boom, growth has never been high enough

:19:56.:20:00.

to support a welfare state and lower taxes. Now, as in Italy and

:20:00.:20:03.

Greece, they are facing economic slowdown and a debt crisis. But

:20:03.:20:08.

there is a crucial difference. On the Danube, technocratic Government

:20:08.:20:15.

has already been tried. Since we are living in a democracy, it is

:20:15.:20:18.

finally a technocratic Government, followed by a Government elected by

:20:18.:20:23.

the voters. The question is how the voters will react, and what type

:20:23.:20:26.

Government they will choose. This is a questioner for all the

:20:26.:20:29.

countries where a technocratic Government is operating now, but

:20:29.:20:34.

the question is what will happen after. The answer in Hungary was a

:20:34.:20:38.

swing to right, that brought the Prime Minister to power, that swing

:20:38.:20:42.

to the right may have further still to go.

:20:42.:20:48.

This is the Hungarian guard, allied to the far right opposition party,

:20:48.:20:54.

explicitly hostile to the Roma community, and at times, openly

:20:54.:20:57.

anti-semetic. It is riding high in the polls. Forced it disband its

:20:57.:21:02.

militia, it still has an image problem. Its presidential candidate

:21:02.:21:06.

told the Israeli ambassador that Jews were lice invested dirty

:21:06.:21:12.

murders. You don't worry at your -- murderers. You don't worry about

:21:12.:21:22.

your own election candidate using the word such as "lice" and "Jews"

:21:22.:21:26.

is anti-semetic? It is unfortunate terminology. It does not excuse her,

:21:26.:21:34.

it was a private exchange of letters. It is no excuse. At one of

:21:34.:21:38.

Hungary's most prestigious theatre, they will find out what it is like

:21:38.:21:42.

when this opposition party takes control. Here, they are rehearsing

:21:42.:21:47.

a play by Thomas Mann, soon there will be no Thomas Mann, no

:21:47.:21:52.

Shakespeare, the company's director has been sacked to be replaced by a

:21:52.:21:56.

part man, pledged to produce Hungarian -- party man, pledgeded

:21:56.:22:01.

to produce only Hungarian plays. TRANSLATION: In my 13 years here,

:22:01.:22:05.

we put on 50 Hungarian playsment but we also want to be open to the

:22:06.:22:09.

world. But it is important that the balance between national and

:22:10.:22:19.
:22:20.:22:22.

international. We just cannot close our window to the world. Next year

:22:22.:22:30.

the actors will be asked to perform the work of a Hungarian writer who

:22:30.:22:34.

supports anti-semetic views. Under pressure from the far right and

:22:34.:22:38.

European centre, the Hungarian Government feels friendless. We are

:22:38.:22:42.

open for dialogue and we are part of a family. We are part a

:22:42.:22:46.

community. We want to abide by the rules, and if there is a problem,

:22:46.:22:52.

that again, as I said before, we have a legal order, to rectify such

:22:53.:22:56.

problems. The strength of language in the international community is

:22:56.:22:58.

not just about economic, it is about the Central Bank, the media

:22:58.:23:02.

law, it it is about the closure of radio stations. It is about putting

:23:02.:23:08.

far right actors in charge of major theatres? Then you refer to major

:23:08.:23:13.

theatres, you probably refer to a single smaller thee tr,

:23:13.:23:19.

representing less than 1 -- theatre, representing less than 1% of the

:23:19.:23:23.

called Hungarian theatre market, if I put it that way. When you speak

:23:23.:23:26.

about the media law, you forget that the European Commission made

:23:26.:23:33.

some observations and suggestions and all of these suggestions were

:23:33.:23:36.

immediately adopt and incorporated in the amendments the legislation.

:23:36.:23:40.

Do you see the point, though, the interle national community are

:23:40.:23:42.

worried the erosion of -- international community are worried

:23:43.:23:46.

about the erosion of checks and balances. They see the far right

:23:46.:23:53.

party applauding what you are doing? The far right party is

:23:53.:23:59.

violently disagreeing with us. They disagree with us practically on all

:23:59.:24:03.

economic and political points. The agreement with the IMF we are

:24:03.:24:07.

working on, they completely reject that, they demand, First Minister,

:24:07.:24:12.

non-payment of debts, and such absurdties, and impossible things.

:24:12.:24:19.

In the late night bar of Budapest, life goes on. This begin never knew

:24:19.:24:22.

communism, but it is getting know economic nationalism well. The

:24:22.:24:26.

promise was that the European Union would guarantee liberal social

:24:26.:24:34.

values, democracy and prosperity. All of that is now in question.

:24:34.:24:40.

I'm joined now by Hungary's ambassador here, on the national

:24:40.:24:44.

consultative body for Hungary's new constitution.Ed good evening. How

:24:44.:24:50.

is it -- good evening, how is it in such a short space of time your

:24:50.:25:00.
:25:00.:25:00.

country has managed to offend human rights activists, the EU, the

:25:00.:25:04.

markets, about what is going on in your country? Let's start with the

:25:04.:25:07.

facts, my background is economy, so I will start with the economic

:25:07.:25:11.

facts rather than political. When you look at the country you look at

:25:11.:25:18.

four or five major indicators. The budget deficit in Hungary this year,

:25:18.:25:22.

for 2011, is below 3%. Only seven countries in the whole of Europe

:25:22.:25:27.

can deliver that. The European Union average is 6.6%, and your

:25:27.:25:35.

country, the UK delivers 10%. bond yields are 9.5%, completely

:25:35.:25:39.

unsustainable, we can go through lots of economic figures. We know

:25:39.:25:43.

your currency is declining also. You need IMF money. You will have

:25:43.:25:48.

to change to get it? We have to get down to the basics. When we

:25:48.:25:57.

negotiate with the IMF or the EU, we are negotiating in issues of

:25:57.:26:01.

economic policies, and what kind economic policies can deliver

:26:01.:26:07.

results? Again, budget deficit. We have still a 1.5% GDP growth, that

:26:07.:26:14.

is the third quarter data. You have 0.5%. But we're not being grilled

:26:14.:26:18.

by the IMF at the moment for money, we are not being told by the EU

:26:18.:26:24.

they will withle hold funds. You are in -- withhold funds. You are

:26:24.:26:28.

in real trouble, why aren't you facing up to it? We are. Why don't

:26:28.:26:31.

you change law, independence of the Central Bank people are asking for

:26:31.:26:36.

it? Have you read the letter that we got from the ECB, because they

:26:36.:26:43.

had 15 issues in had their letter, 13 has been enshrine. They had two

:26:43.:26:52.

issues, still under debate. One is suggested exactly by the Brussels

:26:52.:26:57.

authorities, that we face, globally, a systematic risk. This is why the

:26:57.:27:02.

national banks, or the central banks, and the financial

:27:02.:27:07.

supervisory boards could work closely together, to make sure that

:27:07.:27:14.

the macro Prudential issues are dealt with. Out of the 15 it is

:27:14.:27:16.

only two. Although they are considered very significant by the

:27:16.:27:22.

IMF. To of move to the wider points here, the real problem many

:27:22.:27:27.

observers see, the judicial system has been limit, new judges helping

:27:27.:27:30.

the Government, the Electoral Commission back packed with

:27:30.:27:34.

Government supporters, the new media law, none of fitting with a

:27:34.:27:38.

modern European democracy. Did you hear my Foreign Minister. I did?

:27:39.:27:45.

said in the spring the media law was scrutinised by the European

:27:45.:27:49.

Commission, there were suggestions, in two weeks time Hungary made the

:27:49.:27:53.

necessary decisions. Club Radio is still close, Hillary Clinton asked

:27:53.:27:58.

that independent radio stations? Club Radio applied for a license,

:27:58.:28:08.
:28:08.:28:13.

they failed to measure up to the legal obligations, or criteria.

:28:13.:28:16.

was nothing to do with the fact that they were critical of the

:28:16.:28:19.

Government. Why would Hillary Clinton want you to owe reopen this

:28:19.:28:22.

radio station. Why would Hillary Clinton among others suggest

:28:22.:28:25.

reopening the radio station, saying independent media would be a good

:28:25.:28:31.

idea? Next time Club Radio, when it comes to the next licensing round,

:28:31.:28:37.

they should apply, but Hungary is a country of the rule law. Everybody

:28:37.:28:40.

has to abide with the rule law. are changing the rule law, you are

:28:40.:28:49.

packing the courts? No, no, no. Let me guff you an example, what I love

:28:49.:28:52.

-- let me of give you an example. What I love in this country and the

:28:53.:28:55.

US, you have a long history of building institutions. Two examples

:28:55.:28:58.

are from the UK. We're very familiar with the UK position, but

:28:58.:29:03.

it is really your own position, we love our institutions, but it is

:29:03.:29:08.

your institutions? We have to establish institutions.

:29:08.:29:18.

Unfortunately, every fourth year, every election, the old one

:29:18.:29:22.

abolishes what the former one did. This is why we need a you new

:29:22.:29:27.

system. The new constitution was presented to the committee, the

:29:27.:29:32.

underlying statement was that the constitution represents a

:29:32.:29:36.

democratic constitution baseded on the rule of law. All the words --

:29:36.:29:42.

based on the rule of law. All the words were appreciative, and we had

:29:42.:29:49.

all the words considered. Have you seen it? I will send a copy for you.

:29:49.:29:53.

You must have been surprised with the reaction so manyed bodies, with

:29:53.:30:01.

the suggestion that -- many bodies, with the suggestion that it is not

:30:01.:30:04.

good? When I talk about the economic facts and documents and

:30:04.:30:09.

facts in our correspondence between Brussels and my Government then you

:30:09.:30:14.

come back to these kinds of accusations. My Government is based

:30:14.:30:19.

on facts. I think that the committee's opinion is right. I

:30:19.:30:26.

know that there are many political adversaries, it is a values issue,

:30:26.:30:30.

values are represented in the political sphere. Often times

:30:30.:30:35.

talking about institutions. It is like the Scottish election.

:30:35.:30:38.

sure the Scots will love that. Thank you very much.

:30:38.:30:43.

Coming up in a moment. Will films like this meet David Cameron's idea

:30:43.:30:49.

of a likely box-office hit. So, qualifying for taxpayer funding.

:30:49.:30:53.

First the mysterious and violent death of yet another Iranian

:30:53.:30:58.

scientists working on the country's nuclear programme. It reads

:30:58.:31:04.

something from a spy thriller, Iran accused the Americans and they

:31:04.:31:08.

robustly denied any American involvement. We tried to find out

:31:08.:31:12.

what is going on behind the usual diplomatic exchanges. What happened

:31:13.:31:19.

in Tehran? This is an attack of the kind that is seen before. The

:31:19.:31:22.

scientist professor, Mostafa Ahmadi Roshan, was attacked in his car, by

:31:22.:31:27.

people in a motorcycle who attached a bomb to the car, turned away, and

:31:27.:31:31.

shortly afterwards the bomb went off killing the scientist and his

:31:31.:31:35.

driver. If we look at the wreckage, you can see a directional type of

:31:35.:31:39.

device, which has left the head lamps and various other parts of

:31:39.:31:43.

the car intact. But served its purpose of killing the people

:31:43.:31:50.

inside without causing any real risk to bystanders and others. A

:31:50.:31:54.

sophisticated attack. The Iranians have blamed Israel for all kinds of

:31:54.:31:56.

things, why are they particularly concerned about Israel in all of

:31:56.:32:01.

this? There clearly is a group of nations acting to try to frustrate

:32:01.:32:11.
:32:11.:32:11.

their nuclear ambitions. Now, today, the US issued a particular de --

:32:11.:32:15.

denial. I want to categorically deny any United States involvement

:32:15.:32:22.

in any kind of act of violence inside Iran. We believe that there

:32:22.:32:28.

has to be an understanding between Iran, its neighbours and the

:32:28.:32:34.

international community. That finds a way forward, for it to end its

:32:34.:32:38.

provocative behaviour. Mrs Clinton's statement very

:32:38.:32:42.

carefully worded there. Any US involvement, for example, not using

:32:42.:32:49.

proxies, in any act violence. So the role that the US, or the UK may

:32:49.:32:52.

play in frustrating Iran's ambitions through covert action,

:32:52.:32:56.

might be limited to denying them certain access to materials that

:32:56.:33:00.

might have nuclear uses. Perhaps using computer viruses, that type

:33:00.:33:05.

of thing. The Israeli role, people in the secret world, are quite

:33:05.:33:08.

unambiguous about it, does include this programme assassination. Now,

:33:08.:33:14.

they are acting, I'mle toll, through Iranian prox -- I'm told,

:33:14.:33:18.

through Iranian proxies. This started two years a the first

:33:18.:33:23.

scientist was killed. He was killed by a bomb in a motorcycle beside

:33:23.:33:29.

the road, that exploded as his car pass. Several months later, a

:33:29.:33:33.

double attack, Majid Shahriari was killed, but another scientist was

:33:33.:33:37.

seriously wound in identical attacks to today. Bombs with

:33:37.:33:40.

magnetic devices being clamped on to cars and then going off. Last

:33:40.:33:45.

year a further attack, a shooting attack, and today's as well. Now,

:33:45.:33:49.

it is widely assumed within the intelligence world that the

:33:49.:33:54.

Israelis are doing it. They are using Iranians toer carry out the

:33:54.:34:00.

bombings. While -- to carry out the bombings, while the Iranians know

:34:00.:34:04.

who they are carrying it out for. Does it make a military attack on

:34:04.:34:09.

Iran more likely? Military action does seem increasingly likely,

:34:09.:34:12.

because of the alarming rise in tensions in the region. People say

:34:12.:34:19.

the US will not resolve whether or not to use action on the nuclear

:34:19.:34:23.

point until after the next general election. There is so much going on,

:34:23.:34:26.

flash points and other incidents, there could be military action

:34:26.:34:30.

before then. On the one hand, might seem like a

:34:30.:34:34.

statement of the obvious, with cash very tight, the Prime Minister

:34:34.:34:37.

today suggested that any investment in British films should be to

:34:37.:34:41.

mainstream films more likely to become hits at the box-office. If

:34:41.:34:45.

the Prime Minister knows the secret to producing and predicting hits,

:34:45.:34:50.

would be good to know what it is. A film about a television presenter

:34:50.:34:55.

talking it a retired politician, might not at first have seemed the

:34:55.:35:01.

hit that frost/Nixon had become. Well talk to two producers with

:35:01.:35:08.

different points of views. This report contains flash imagery.

:35:08.:35:17.

Tonight, in a time austerity. Newsnight proudly presents, in

:35:17.:35:20.

super-sharp, premier vision. One man's qs to mould the movie

:35:20.:35:30.
:35:30.:35:30.

business, the The Director's Cut. Hor ray for Pinewood, perhaps the

:35:30.:35:33.

close -- hurray for Pinewood, perhaps the closest thing that the

:35:33.:35:38.

English film industry has to a home. It makes �4 billion a year. Like

:35:38.:35:43.

ale Hollywood player, David Cameron was on the lot today, gladhanding

:35:43.:35:47.

film makers, then ruthlessly mixing art house and experimental movies

:35:47.:35:51.

in favour of block busters. I ask the right honourable gentleman,

:35:51.:35:55.

whose fault is that? Very likely the Prime Minister, the current one,

:35:55.:36:00.

was thinking of smashes like The Iron Lady, which took more than �2

:36:01.:36:09.

million at the UK box-office when opened last weekend. A Tory peer,

:36:09.:36:13.

and Oscar-winning screen writer, seemed to share Mr Cameron's view

:36:13.:36:19.

of cinema. I had been critical of theed idea that all public money

:36:19.:36:23.

should go into minority and obscure films, it is in the interests of

:36:23.:36:26.

the industry and the public that we start building up and making more

:36:26.:36:30.

films that people want to see. It doesn't mean they are the only

:36:30.:36:35.

films we should make, I don't want to be sort of cornered into saying,

:36:35.:36:43.

it has to be nothing but rom-coms and blockbusters, we don't want

:36:43.:36:49.

that, we want a broad range, but we want to build our audiences and

:36:49.:36:53.

international audiences. This is the kind of oven-ready globaler,

:36:53.:36:58.

that gives British films the bad names. The Sex Lives of the Potatop

:36:58.:37:03.

Machine, we think it is getting its greatest *Ever audience right now.

:37:03.:37:09.

We wouldn't miss stuff like this. A Government review, out next week,

:37:09.:37:13.

is expected to back funding of films with mainstream potential.

:37:13.:37:17.

What are we film fans to make of the Government's policy on the

:37:17.:37:27.
:37:27.:37:27.

movies? Fbgts Is it going to be sin -- is it going to be cinema para it

:37:27.:37:37.

diso, or the Last Picture Show. This is a film made with no starsa

:37:37.:37:43.

no sound. Can I have one for The Artist. If I pitched you a film

:37:43.:37:46.

about a Prince's speech defect, or a couple of guys living in the

:37:46.:37:51.

slums of Bombay. You wouldn't have thought commercial, they made

:37:52.:37:57.

millions of pounds, and won Oscars, I would like to know what is

:37:57.:38:01.

commercial. Commercial means business, he wanted to fuel the

:38:01.:38:05.

entreprenurial spirit, we have to be incredibly like that to get the

:38:05.:38:10.

films made, given the economics. What we are asking and hearing the

:38:10.:38:14.

review may deliver, is a better way to use public money to make

:38:14.:38:17.

business grow and do better. Film buffs have been on social

:38:17.:38:22.

media sites all day, suggesting highly-fundable sounding titles,

:38:22.:38:29.

such as The Royal ska. Monty. Newsnight has acquired a leaked e-

:38:30.:38:36.

mail about the movies Downing Street would like to see. There's

:38:36.:38:44.

Something About Maggie, Ice Cold On skal Alice. Free skal school Willie.

:38:44.:38:49.

We want to see films that audiences want to see, we also want to

:38:49.:38:54.

stretch the audiences as well. And do something that is a broader

:38:54.:38:58.

cultural content. If the Prime Minister gets his way, the range of

:38:58.:39:04.

British films may get narrower, with apologise to Billy Wilder's

:39:04.:39:10.

classic, Sunsetp Boulevard. movies are still big, it is the

:39:10.:39:16.

budgets that got smaller. With me now are two film makers

:39:16.:39:20.

from opposite side of the funding scales, David Baddiel, a writer and

:39:20.:39:30.

director, and Jonathan Cavendish, producer of Bridgette Jones Diary.

:39:30.:39:34.

-- Bridgetp Jones Diary. There is a limited amount of money, should it

:39:34.:39:40.

go to the mainstream? Yes, I think there are a few complicate issues

:39:40.:39:44.

here, which Camion is skating over. The new -- Cameron is skating over.

:39:44.:39:48.

The new BFI, a commission were reporting on Monday, with very good

:39:48.:39:52.

people sitting on it. It is Lord Schmitt from the British Film

:39:52.:39:56.

Institute? Very sensible people. They are not going to stop the

:39:56.:40:02.

support of new talent, they will not stop culturally important

:40:02.:40:06.

movies. They will support the British Industry as best they can.

:40:06.:40:09.

A bigger issue is how to get the Government, whose interest in the

:40:09.:40:14.

film industry is to be applaud, how we can get them to hp us build a

:40:14.:40:17.

big and sustainable -- help us build a big and sustainable

:40:17.:40:20.

industry on the back of all the talent we have in this country.

:40:20.:40:24.

Stkph they are talking aboutle value for money, in effect, -- they

:40:24.:40:28.

are talking about getting value for money in effect, and maximising

:40:28.:40:31.

returns, and people are in favour of that. Is he on to something?

:40:31.:40:35.

He's on to something, it is glib, but he's on to something. What I'm

:40:35.:40:38.

excited by is the Government have turned their attention to the film

:40:38.:40:43.

industry, which has, in the past, been reviewed as a bit of a cottage

:40:43.:40:45.

industry. Saying we have the best people in the world, the films make

:40:45.:40:49.

a lot money, as very profitable business. Let's get institutions in

:40:49.:40:53.

the City, for example, to back British film companies and British

:40:53.:40:57.

film makers. Ken Loach today said that, the trouble is, it is all

:40:57.:41:00.

about maximising profit, that is the wrong way to go, because we

:41:00.:41:05.

will be culturally poorer. Are you worried about some of this?

:41:05.:41:09.

problem is what constitutes commercial viability as far as

:41:09.:41:12.

David Cameron might think it. The film I made last year, or two years

:41:12.:41:18.

ago, it was funded independently, privately, cost �1 million, it has

:41:18.:41:21.

taken $5 million worldwide, it is commercially viable, in his terms.

:41:21.:41:25.

It it is about a Muslim who discovers he was born a Jew. I was

:41:25.:41:28.

convinced at the time, because people did say no, that if I took

:41:28.:41:32.

this to the quango, whatever it is set up by David Cameron, looking

:41:32.:41:36.

for commercial viability, they would say it is not a commercial

:41:36.:41:40.

idea, and it is niche, it turns out not to be true. You got it made,

:41:40.:41:44.

because you are good at these things, you didn't need the money?

:41:44.:41:48.

We did need the money. The money took a while to come in and people

:41:48.:41:53.

took risks on it. The point being, I'm an independent film maker,

:41:53.:41:56.

different from Ken Loach, I am interested in the films beingp

:41:56.:42:01.

popular, people coming it see them and it being a -- being popular and

:42:01.:42:04.

people coming to see them and it being a mainstream thing. That

:42:05.:42:09.

being discovered by David Cameron and a bunch of people looking at

:42:09.:42:13.

pictures thinking what constitutes commercial film is doubtful. They

:42:13.:42:16.

will go on what happens before, that is not the way to make art or

:42:16.:42:20.

find popular films. There is a point there, the idea of

:42:20.:42:24.

Governments or anybody in a quango being able to spot a hit when

:42:24.:42:28.

nobody else can, including film makers, it it is hard to have a hit

:42:28.:42:35.

or not? Nobody knows anything in the movey business, as William Gold

:42:35.:42:41.

beman said, I don't think David Cameron will go and run the FMI,

:42:41.:42:46.

and the money will increase after the Olympics. I think it is a bit

:42:46.:42:51.

of a scare story. The real thing is we go on supporting our young film

:42:51.:42:58.

makers. I have just started a new company with Andy Serkis, it is a

:42:58.:43:02.

technical company makes performance capture films. Next year we are

:43:02.:43:09.

making a film with a director who made his first small film, The

:43:09.:43:18.

Escapist, supported by small arts groups. Went on to make The Rise of

:43:18.:43:25.

the Planet of the Apes. We will come back next week and adapt a

:43:25.:43:29.

famous book, that is how works. Whatever criticism Cameron gets, I

:43:29.:43:34.

wonder might itp help the film industry immensely to say this is a

:43:34.:43:38.

major employer, and industry, we are really good at it in this

:43:38.:43:42.

country, sometimes going abroad, but we are really good. At a time

:43:42.:43:47.

when he has to cut everywhere, it might project some of the money?

:43:47.:43:50.

This are lots of ways of funding films, in Denmark and France France

:43:50.:43:58.

they have a levy, meaning 12% all films have to be French ordainish.

:43:58.:44:04.

There is a notion -- or Danish, there is a notion that we shouldn't

:44:04.:44:09.

have English films because we have American films.

:44:09.:44:14.

The thing is, film is an incredibly vietlal thing. Gradually it seems

:44:14.:44:17.

to me that we are building up films that people do want to go and see.

:44:17.:44:22.

One of the good things what Cameron said, drawing attention to The

:44:22.:44:26.

King's Speech, does suggest that if, for example, 12% of the cinemas did

:44:26.:44:30.

just show British films, people would go and see them now. They

:44:30.:44:33.

would, five or ten years ago they probably wouldn't, there is a

:44:33.:44:36.

groundswell really good British films. There are some very good

:44:36.:44:40.

people out there. Crucial low, foinlally, lots of very good

:44:40.:44:44.

British pro-- finally lots of very good British producers thinking

:44:44.:44:50.

about the audience, using great writers and fantastic actors,s

:44:50.:44:55.

becoming extreme low profitable. This austerity cull -- extremely

:44:55.:44:59.

profitable. This austerity culture, the film Friday can't be immune

:44:59.:45:05.

from that? It it is not, one of the things that tends topp happen, is

:45:05.:45:09.

there used to be tax breaks to help people invest in film, those have

:45:09.:45:12.

all gone. People areer worried about it. What I think should

:45:12.:45:16.

happen is there could be more radical ways creating a market and

:45:16.:45:20.

creating money it flow into British film that weren't just having to

:45:20.:45:23.

provide Government money, which has always been very small in this

:45:23.:45:26.

country compared to other places in Europe.

:45:26.:45:36.
:45:36.:45:45.

A quick lock at the front pages. That's all tonight, Emily is here

:45:45.:45:55.
:45:55.:46:23.

A windy night expects across Scotland, fusy winds. Easing

:46:23.:46:28.

through the morning, behind a band of rain pushinging through England

:46:28.:46:32.

and Wales -- pushing through England and Wales. Brightening up

:46:32.:46:37.

sunshine from the rest of the day. Tolder weather following from the

:46:37.:46:40.

weather front, straddling across southern parts of England drurg the

:46:41.:46:45.

afternoon. Thicker cloud in places, -- during the afternoon. Thicker

:46:45.:46:50.

cloud in places. Sunny spells possible. You will notice colder

:46:50.:46:54.

conditions starting to work into the north of Wales, not desperately

:46:54.:46:57.

chilly at this stage, with it comes a bit more sunshine. Northern

:46:57.:47:00.

Ireland, after some early morning cloud, long spells sunshine, taking

:47:00.:47:04.

you right through the day. Aed good dole sunshine through central,

:47:04.:47:08.

southern -- a good deal of sunshine through central and southern

:47:08.:47:13.

Scotlandment watch out for wintry showers, the -- southern Scotland.

:47:13.:47:17.

Watch out for wintry showers. A frosty start for Friday, one or two

:47:17.:47:19.

lingering fog much patches particularly across North West

:47:19.:47:23.

England and Wales. The big changele really will be noticable across

:47:23.:47:29.

southern areas, the temperatures Thursday around 10-11, Friday sixes

:47:29.:47:32.

Download Subtitles

SRT

ASS