03/02/2012 Newsnight

One Lib Dem leaving the cabinet to be replaceed by another, might

sound like musical chairs, here is a clue why it is much more

significant, while David Cameron has been saying what a fine Energy

Secretary we have lost. Obviously I want to thank him for the very good

work he has done in Government Across Westminster other stories

are heading back, -- Tories are holding back the tears, as Chris

Huhne heads out of the office into a criminal prosecution.

Opinion has always been divided over Chris Huhne, some cannot stand

him, others describe their feelings as closer to hate.

Banker bashing has been the game of the week, more today and more

coming next week, is this a real attempt to change capitalism, or

the politics distraction. We will mull over a week of lost bonus,

lost Knighthoods and lost jobs. Good evening, it started with a

quiet night and a car driving along the M11. Today it ended, a cabinet

career. John Terry said goodbye to the England captaincy, and Fred

Goodwin to his Knighthood, and Chris Huhne is no longer Energy

Secretary, it is easier to replace him than the football captain.

What started with a flash on a camera in 2003, has today triggered

hundreds more flash bulbs. In the frame, a man fight to go clear his

name and save his career -- fighting to clear his name and save

his career, and his ex-wife. Both could face jail if found guilty,

there are implications for the Liberal Democrats and the coalition.

After spending six months considering the case, the Crown

Prosecution Service took the unusual step of letting it be known

last night that they would make a statement on camera at 10.00am.

have concluded that there is sufficient evidence to bring

criminal charges against both Mr Huhne and Miss Pryce, for

perverting the course of justice. The essence of the charges is that

between March and May 2003, Mr Huhne, having allegedly committed a

speeding offence, falsely informed the investigating authorities that

Miss Pryce was the driver of the vehicle in question, and she

falsely accepted that she was the driver. It was Mr Huhne's affair

with his media adviser that had led to the break up of his marriage of

26 years, there followed a divorce and allegations in a newspaper from

his ex-wife, that someone, in 2003, had accepted speeding points to

save him from a driving ban. Today, Miss Pryce, his ex-wife, was saying

nothing. I'm sorry I can't comment on anything, thank you.

Facing a criminal prosecution, Chris Huhne decided he had no

option but to resign from the cabinet. I'm innocent of these

charges, and I intend to fight these in the courts, I'm confident

a jury will agree. So as to avoid any distraction, to either my

official duties or my trial defence, I am standing down and resigning as

energy and climate change secretary. I will, of course, continue to

serve my constituents in Eastleigh. Thank you, that's all I want to say

today. Chris Huhne's departure has unDowning Streetedly changed the

top table dynamic within the coalition. He seemed to almost

relish getting into arguments with his Conservative called colleagues,

and what's more, he let people know that's what he was doing.

Now he's gone, well the Liberal Democrats could have more

difficulty in showing their supporters and potential voters

that they are still a distinct party. Not a wholly-owned

subsidiary of the Conservatives. was someone who was going to stand

up strongly on environmental issues, hugely important to the grass roots.

He wasn't going to give ground. He believed the best means of

negotiating in a coalition was to stand firm, and say there are some

lines that cannot be crossed. What is notable about the Lib Dems on

issues like Europe, and vad, on tuition fees, -- VAT and on tuition

fees they have capitulated too quickly, and Chris Huhne would

stand for what he believed in. Although Chris Huhne and Nick Clegg

would say they were friends, they haven't always been friendly during

the 2007 leadership contest, Mr Huhne turned his aggressive, take

no prisoners-style of politics, on his opponents. Why have you issued

a briefing document called "calamity Clegg". I haven't? This

has come from your office to the Politics Show? I didn't see it.

Don't you know what goes out of your office? It is impossible to

check everything that goes out of the office, this is a large

campaign, going right the way across the country, I can assure

that hasn't had my authorisation. Chris Huhne is seen at Westminster

as extremely effective politician. He was central to the coalition

negotiations. Someone who, it is reported, hadn't given up on being

leader himself one day. Today the man who is Liberal Democrat leader

and Deputy Prime Minister, said he wished his one-time opponent a

speedy return to Government. Chris Huhne is a close friend and great

colleague, and who has done an outstanding job in energy and

climate change. He has been a pioneer in new ground-breaking poll

sits w I believe will stand the test -- policies, which I believe

will stand the test of time. If he clears his name, I have made it

clear to him I would like to see him back in Government in a key

position. Chris Huhne's place as Secretary of

State for Energy and climate change has gone to Ed Davey, an ally of Mr

Clegg. The balance of power within the Liberal Democrats has shifted

today. Meanwhile, Chris Huhne faces a court appearance in two weeks

time, and a fight for his future, and his liberty.

David Grossman is with me now, one man in a grey suit leaving the

cabinet, another man in a grey suit taking his seat. A lot of people

thinking it is a fuss about not very much? It is a safe bet to say

President Obama isn't in the situation room receiving a briefing

on who Ed Davey is, however, I do this move, this change in climate

change and Energy Secretary, could have an impact on British

Government policy. Chris Huhne saw it almost as a personal crusade to

make sure that the Government lived up to its pledge to be the

Koreanest ever. He thought Britain should lead the way, and then other

nations would follow. And in that, he faced considerable opposition,

not least from George Osborne, who thought that we shouldn't go any

further and faster than any other country. But there was a big battle

there. Why did Chris Huhne do that? Partly, no doubt, he believed it

absolutely. But he also thought it was very good politics to show to

the Liberal Democrat base that being in coalition had tangible

benefits they cared passionately about. Will Ed Davey be as

effective? We don't know. But I can tell you tonight that some

Conservative MPs, who fear that the recovery will be hobbled by green

taxes, are a little bit happier, and green groups are a little less

happy. That is the politics within the coalition, what about within

the Lib Dems themselves? When the coalition of formed, we all thought

we would get lots of weekly briefings about big rows and bust-

ups within the cabinet. Largely, that hasn't happened. Where it has

happened, it has involved Chris Huhne. On one famous occasion he

slapped down a leaflet on the cabinet table about the AV

referendum and demanded to know which Conservative had authorised

it. The Lib Dem base like that, they like to know that the love-in

wasn't a complete love-in, that there was somebody inside the

cabinet who shared their instinct, which is to pull the hair and flick

the ears of the Conservatives, to fight them. Because that's what

they wanted to do. It is not clear who else will be doing that vocally

and visibly inside the cabinet right now.

Thank you very much. The Lib Dems lost one cabinet

minister right at the start of the coalition, when David Laws resigned

from the Treasury over expenses claims, now in losing a second

senior figure, unless the well of party talent is deep, are they in

danger of losing ground in the coalition. The point made there, he

won't be missed by all cabinet colleagues? David's analysis is

really oversimplistic. Chris was a senior politician in our party and

in the cabinet, he did a robust job. There may be people on the cabinet

table, the Tory side, who weren't so keen on somebody determined to

push the environmental agenda, which he was. If they think Ed

Davey won't be as strong they are mistaken. So there is no

difference? They have both been committed to a change of culture

about how we look at energy internationally, how we deal with

the risk of climate change, how we deal with our environment. Both

have been jointly owning, as we all have, led by Nick, the policy,

there will be equally robust determination at the cabinet table

from Ed Davey as Chris Huhne. everybody found Chris Huhne to be

Mr Congeniality, at least in the Conservative Party, he did stake

out particular areas of difference and differenceate himself in a

which Nick Clegg hasn't. I don't think so. Chris cited during the AV

campaign of Chris's complaint at the cabinet, that the Tories turned

on Nick and misrepresented our position. He was right to do that,

the party thought he was right to do that. I seem to remember Vince

Cable, on a fairly regular basis, says things that might not appeal

to all the Tories about how to deal with high executive pay, rightfully

so too. I remember Nick Clegg last week was clear about going further

and faster about taking poorer people out of the tax, not a

position adapted by George Osborne or the Prime Minister. Our team in

the cabinet, they fire on all cylinders, and yes there are

different positions, you know the score, we are there, as a coalition,

in the national interest, clearing up the mess, sorting out the legacy

left by Labour. We are different parties, Chris was a Liberal

Democrat, different from Tories, and Ed Davey is likewise.

mentioned Vince Cable there. Vince Cable is still in the cabinet,

although he had one or two problems with one of the newspapers and his

comments about Rupert Murdoch, David Laws we know about. You

haven't got this endless well of talent you can draw on. You mustn't

be as careless as a party in Government as you have been?

have just had a parliamentary away day together, the 57 MPs, there is

huge talent, that is why egg Nick was very able to -- why Nick was

very able to appoint Ed, really good track record and job as a

minister dealing with difficult issues like the Post Office. Others

promoted, Norman Lamb going to the DTI, two women in the party

promoted, one to be Nick's PPS, and the other. We have lots of talent,

we are not without talent. We contribute at all levels on the

coalition Government. A number of people today have been suggested

that Davey difficult is a talented man, and could be -- daich daich

daich is ale it lented man -- Ed Davey is a talented man and could

be the leader next? There won't be a leadership election for a long

time with Nick Clegg. His job is to change the policies

on green issues, and remind the cabinet that we are the greenest

party in Government. If it is about the green investment bank, he will

carry on Chris's legacy. We wish Chris well, we hope he can clear

his name soon and be back, in the meantime Ed will fight the good

fight for green democracy. We have assembled the collective wisdom of

Danny Finkelstein, Catherine MacLeod, who used to be an adviser

to Alistair Darling, and Evan Harris, a Lib Dem MP until 2010,

now a member of the party's policy committee. Was there real friction

in cabinet or a lot of spin about differentiating on various issues?

It is certainly true that Chris Huhne is not the most pap later

Liberal Democrat among Conservatives. Liberal Democrats

will see that as a good thing. He's an effective politician and big

figure. At the same time, certainly at the top, and throughout the

party, they will be worried that Government ministers had to resign,

it doesn't make the Government look good, it is not exactly an

advertisment when somebody in the cabinet is charged, or has a

criminal charge, there could be a by-election, that is very

disruptive if things don't go well for Chris Huhne. If they do go well,

there will be a problem with having Ed Davey in the cabinet and what to

do with Chris Huhne. This is a destablising moment. Nobody likes

that, eventhough Chris Huhne isn't their favourite Liberal Democrat.

destablising moment, and also this question of differenciation, and

the things that you and people in the grass roots of the Liberal

Democrats want to see? I don't disagree with what Danny just said,

I do disagree with David Grossman saying the coalition is otherwise a

love-in. It isn't, it is two parties who are disagreeing on many

things, working together and agreeing to compromise. It is not a

love in local Government when Labour and Conservatives have to

work together to get stuff through a council. It is not in other

European democracies. Part of the problem with understanding why

Vince Cable and Chris Huhne are seen as so exceptional, is the

media's problem in understanding that a coalition is people

disagreeing, ending up agreeing, but arguing along the way. I think

it is valid to say, that other people in the cabinet will have to

do what Chris Huhne did, which was to stand up for green policies,

against, for example, George Osborne. Do you expect more of that

will have to happen, that there will have to be more

differenciation, so the Liberal Democrats are not, as it were,

swallow load up? Nick Clegg and the Liberal Democrats have made it

clear they want to stress the differenciation more in the third

and fourth years of the Government than in the first year. Many of us

think in the first year it wasn't done enough. That is already

happening. People like Ed and the cabinet will have to do that. It is

not straight forward for him to do that as a new cabinet minister,

there is a challenge for the rest of the cabinet ministers there.

this a big deal or not? It is a big deal, for the Liberal Democrats,

although I'm sure that Nick Clegg would prefer he didn't have to lose

another member of the cabinet. Chris Huhne was there really in his

own right, he had only been beaten by 500 votes for the leadership. He

was pretty strong, he wasn't there through Nick Clegg's patronage, he

earned his way to the cabinet. Ed Davey is there through Nick Clegg's

patronage, and is less of a threat to Nick Clegg. It is a question of

stature, Ed Davey may have the talent to gain the stature, I don't

know enough of his style to know that. He doesn't have that now

compared to Chris Huhne. The Liberal Democrats have definitely

lost some weight. That will damage them, and has to be set against the

fact that it gives Nick Clegg more of a free hand. There is no doubt

that Chris Huhne put pressure on Nick Clegg to act as he might not

otherwise have done. My own view, different from your's, is that the

coalition works best and will work best for the Liberal Democrats,

when you achieve a degree of coming together. I noi you want more

differenciation -- I know you want more differenciation, I'm not sure

that you will get there. I'm not sure Liberal Democrats will take

your prescription for that. We will be opposing each other, we

require the electorate, this happens in coalitions across the

world to recognise, not only what our contribution to the coalition

has been, which is strong on climate change, and fairness and so

forth, tax fairness, for example, but also know which bits of the

Government record were not things that the Liberal Democrats will

want to do more of in a future parliament. So that does require

people with -- who are slightly bowl shi to be about that. It will

take time to get into the swing of it. It is turning into a love had

in? It is. Not that much of a love- in, I think Ed Davey will be a very

popular person for the Liberal Democrats, he has been an effective

campaigner for many years, he might represent the soul of the Liberal

Democrats in the cabinet, they will like that. I don't think Chris

Huhne did do that, I don't think his appointment to the cabinet has

necessary strengthened the cabinet. It's 9% you are on, you have to do

something about that, otherwise at the next election you will have a

smash. So ...I Don't think not being different, being seen as

different from the Tories, or the Government as a whole is a recipe.

People like the Tories, they will vote Tory, they won't vote Liberal

Democrat. The left vote is not coming back. You made a decision,

which was brave, and I think correct, to have a coalition with

the Conservatives, but if you are a left voter, who voted Liberal

Democrat for that reason, you are not going to vote for the Liberal

Democrats who joined with the Conservatives in coalition. You

underestimate the electorate. left is as much about civil

liberties, Labour, maybe we will talk about this later, Labour on

civil liberties still disappoint many people, who care about human

rights, and the Human Rights Act, for example. Maybe, the left of the

Liberal Democrat party will be more inclined to vote Liberal Democrat

tonight than it was last night. will find out in a minute. Let's

move on, while for the Government there was the excitement of a

cabinet resignation and mini- reshuffle, for the opposition today

there was a return to what Ed Milliband sees as a good subject

for him, bad bankers, irresponsible capitalism, and the prospect of our

rows about bankers' bonuss in a Commons debate on Tuesday. Mr

Miliband called for one-nation banking, after the Fred Goodwin

scandal this week. Are bankers' bonuses the plilgts of

distraction, because it is easier to find a few scapegoats than jobs.

We have this report. We are a discontented country,

discontent with bankers has become the thing that unites protestors,

politicians, punddilts -- pundits. Today the Labour leader tapped into

this discontent a bit more. This is a call for banking to recognise,

and continuing on its current path will lead to further isolation from

society, greater public anger, and more years in which banking is a

subject of lurid newspaper headlines. He had some radical

solutions, a community bank and even an investment bank? It means a

more diverse and competitive banking system, rooted in our

communities, as the Government makes decisions about the disposal

of some of its shares, and the changes in the banks, it needs to

bear this in mind. It also means, in my view, looking at the case for

a British investment bank, which will provide Government-backing for

entrepeneurs, particularly small and medium-sized ones, when the

market fails. Ed Milliband today invoked Disraeli, Victorian Britain,

rich and poor, who hated each other and knew very little of each

other's lives. But modern Britain does hate bankers, while liking

Tories. U guff asked voters are bankers

bonuses of �1 million, justified, unjustified for state-owned banks

only, or generally unjustified. A clear 61% were against such bonuses

all together, just 8% thought they were OK given global competition.

There was no dramatic variation between Labour, Conservative or

Liberal Democrat voters. The public simply don't like bankers. It is

not a question of whether one bank is in the private sector other

another bank is in the public sector. They think all bankers'

bonuss are far too much. The public have simply taken against bankers

as a breed. Why doesn't that translate to support over Labour?

One of the striking things is despite the drama of the bankers'

bonuses, despite the flatlining of the British economy, people trust

the Tories more than they trust Labour on the economy. They want

David Cameron and George Osborne, not Ed Milliband and Ed Balls.

If bad economic news drives banker bashing, get ready for some more.

The national institute, a respected forecasting group, thinks Britain's

economy is set to shrink by 0.1% this year, at odds with the

official forecast of 0.7% growth. The Institute for Fiscal studios

says the pain is hardly started when it comes to cuts. Even by

April only 6% of the planned cuts to current spending will have been

made. Markets can fail, uncontrolled globalisation can

slide into Monday mop liesation. was the -- Monopolisation. It was

the Prime Minister who kicked off the banker bashing two weeks ago,

some Conservatives think there is a limit to what it can achieve?

people look for a scapegoat in a financial crisis. Though it makes

us feel better it doesn't solve the underlying problems. It might be

better thinking about how to get growth going again and changing the

way people in the City are renumerated more broadly, rather

than looking for individuals to pick on. Conveniently for the

politician, slowly, quietly, the atmosphere around Westminster

towards bankers is turning negative. It is clear from that, that people

really don't want bankers to have bonuses period. In that sense Ed

Milliband is pushing at an open- door. Why isn't he making more

headway in this, why do the polls also find it is the Tories who are

more trusted on this than Labour? People made up their minds about

bankers and bonuses a long time ago. Nobody understands why bankers are

being paid such a lot of money. Meanwhile, everybody knows there is

a crisis of unemployment, I think Ed Milliband, myself, would make

much greater impact if he was talking about jobs and growth, and

the ills of unemployment. It is a very easy distraction for the

leadership of the Labour Party, and the Tory Party. I think George

Osborne and David Cameron must be delighted that the focus is on

bankers and bank bonuses and not on jobs and growth. Today we have

heard that in America unemployment is going down, Germany has had the

lowest unemployment for 20 years, what is going wrong in Britain, why

are we not asking that question every day. That is the equality

agenda, the fairness and hating the bankers is easy, creating the jobs

isn't happening? It is very difficult. The problem for Ed

Milliband is a bit like the problem for William Hague when he started

to talk about asylum and immigration. Every poll said that

would work, every person who you asked said it was a big problem for

emthey, and yet it didn't do anything for the -- for them, and

yet it didn't do anything for the Conservative vote. Partly it is

already baked into the cake, people know the Labour Party is against

rich people having big salaries, they rather suspect the

Conservative Party doesn't mind so much, that is already priced in. It

doesn't shift votes when you concentrate on it. If I were Ed

Milliband I would be concentrating on all the things not priced in,

and concentrating on the issues not just we have talked about, but

welfare benefits too, there he can change people's perception of

Labour. He may think they are important, and indeed it is the

case that Conservatives are uncomfortable on these things.

Liberal Democrats be distinctive about this, we heard Nick Clegg

saying we won't standby eyedly about bankers' bonuses, and there

is a lot of standing eyedly by? That remains to be seen. The

removal of the Knighthood and million pound bonus are popular

gesture, Liberal Democrats support populus gestures when they don't

hurt a number of people. But I think the opportunity for the

Liberal Democrats and the Tory, if they are wise to allow it and pick

it up, is getting rid, not just of bankers' knighthoods but bankers'

tax havens and avoidance tricks. These things can be measured,

eventhough it sounds boring, that the marginal rate paid by the

richest in the country, the tax rate, is not lower than the

marginal tax rate paid by Mr and Mrs average. Joofrpblgts there is a

clash between thisish -- There is a clash between this issue of growth,

and chaiting bankers across the country -- chasing bankers across

the country for tax. I'm of the view that bankers are overpricing

labour, and they are paying too much. But I'm also very worried

about whether people are going to bother to do business in this

country, and move their businesses to this country, if they feel that

there is a mood of vindictiveness towards people in financial

services. That could be a problem for Labour, could it not, you said,

and most people could agree with you, jobs is the issue and growth,

if it was seen to be penalising a few bankers by taking away a

Knighthood and an old bonus it wouldn't matter, but if it was seen

to be penalising a sector for jobs it would matter and Labour would

not look good on that? There is a million jobs in financial services

in this country, it is very important. Where people are Iing

this about Britain sitting in France, or Hong Kong, and wherever

they are sitting and saying a single man having his Knighthood

striped away for what, why not a group of Knights, everybody was

cupable. If we are going to jeopardise the financial services

industry of this country it is very serious. I want to pursue this

point, Danny made it in a slightly different way, is it not what David

Miliband thought about, is preaching to your own choir, it is

already priced in by the voters, which is why Ed Milliband is not

making more headway in this? I did read what David Miliband had to say,

I thought he was trying to settle some scores. I'm not exactly sure

what he was wanting to do. With his brother? It was a conversation

perhaps they could have it in private. I don't know if he was

reminding us he was still there. That's not fair. It was apparently

what he was saying but he was saying more than that. Tax fairness,

why should it be described by the BBC as penalising a sector. I don't

think people will leave the country if we say there is going to be

stronger People are saying jobs will go and bankers will flee the

city. That is a different argument from saying to bankers, I don't

know everybody that doesn't think bankers are paid too much. Saying

to bankers who have signed a contract to come and do a job to

say we have changed our minds and rules mid-game we will not pay you.

That is what they would say. that moment we will have to leave

now. In a minute the review show, what have you got for us? Tonight I

talk to Daniel Radcliffe about his big post-Harry Potter And The

Chamber Of Secrtes lead in The Woman In Black. We tour the British

Museum exhibition on Hajj, Roman Polanski tackles modern morality

and Carnage, and the thriller set in World War I. All that coming up

Apology for the loss of subtitles for 42 seconds

in a moment. Before we go, tomorrow Mitt Romney tried to prove that the

Democrats don't have all the best tunes? You know that song

# Oh beautiful # For spacious skies