11/06/2012

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:00:12. > :00:18.They may have saved some of the Spanish banks for the time being,

:00:18. > :00:23.but the euro is still far from safe. It will take 100 billion euros to

:00:23. > :00:27.save the Spanish banking system. What's left of it.

:00:27. > :00:32.How much longer can the European elite keep the whole thing afloat?

:00:32. > :00:40.Are some nations being asked to accept more austerity than others?

:00:40. > :00:45.The media magnate under oath. said, well, your company has made,

:00:45. > :00:48.declared war on my Government. the former Prime Minister under

:00:48. > :00:51.oath. This conversation never took place.

:00:51. > :00:56.We will ask who is the one with the memory problem?

:00:57. > :01:01.Then there is this. No half measure about Glasgow

:01:01. > :01:07.housing, everything's looking up. They were built as the solution to

:01:07. > :01:15.Glasgow's housing crisis and some people grew rather fond of them.

:01:15. > :01:24.# I'm a scraper # I'm a skyscraper way

:01:24. > :01:28.# I live on the 15th floor. Why, less than half a century later is

:01:28. > :01:31.this happening to them? First thing today, markets all over

:01:31. > :01:34.the world seemed to bounce a bit under the impression that the

:01:34. > :01:38.latest crisis in the eurozone might have been resolved. They snapped

:01:38. > :01:43.out of it as the day wore on, though. Meanwhile, the news that

:01:43. > :01:46.Spain is getting all the relief of a bail out, without any of the pain

:01:46. > :01:50.of austerity measure, hasn't gone down well with countries like

:01:50. > :01:55.Greece or Ireland, wir which were told you couldn't have one -- which

:01:55. > :02:01.were told you couldn't have one without the other. The eurozone

:02:01. > :02:09.mess is alive and well. Let's join our Economics Editor on his tour of

:02:09. > :02:13.ruined economies, tonight he's in Madrid.

:02:14. > :02:18.Resist, we are the fourth power of the eurozone, we are not Uganda.

:02:18. > :02:22.That is what the Finance Minister was texted, as they struggled over

:02:22. > :02:28.the terms of the bail out. They said they were powerful and if they

:02:28. > :02:37.don't give in, the whole thing will go down. The result, a 100 billion

:02:37. > :02:42.bail out, no conditions, and crisis over, a victory, blames Mr Rajoy.

:02:42. > :02:48.The markets reacted with no euphoria, the euro fell against the

:02:48. > :02:51.dollar, Spain's cost of borrowing rose. Some think "victory" is not

:02:51. > :02:54.the right word. There is a misnaming on the part of the

:02:54. > :02:58.Government. They have not called it a rescue but called it a credit

:02:58. > :03:02.line. We are not fully aware of what it entails. Clearly there is

:03:02. > :03:09.going to be some loss of sovereignty, of ability to make our

:03:09. > :03:17.own decisions. That is what happens when a country sin capable of

:03:17. > :03:21.bailing out its own banks. Under the seal -- deal, Europe will pump

:03:21. > :03:25.100 billion euro noose the banks through the bank bail out fund,

:03:25. > :03:30.some will be nationalised and some merged. The money will count as

:03:30. > :03:38.national debt for Spain, which is already rising steeply, and set to

:03:38. > :03:43.hit 90% of GDP this year. It is a clear thing that the euro area is

:03:43. > :03:50.willing and able to tackle the remaining challenges. In this

:03:50. > :03:56.context, Europe is standing by Spain and supporting Spain in order

:03:56. > :03:59.to restructure the banking sector. On the streets of Madrid today, to

:03:59. > :04:04.some it did not feel like a victory. These workers protesting against

:04:04. > :04:07.cuts in wages, and pensions. The absence of strict austerity

:04:07. > :04:15.conditions came only because Spain is already implementing tough and

:04:15. > :04:19.rapid cuts like these. TRANSLATION: We're civil servants,

:04:19. > :04:21.who work in the courts. A rescue pack aing was requested, but only

:04:21. > :04:25.for the banks -- package was requested, but only for the banks.

:04:25. > :04:28.They keep cutting our pay and increasing our hours.

:04:28. > :04:33.Banks have done nothing for this country, and now they are being

:04:33. > :04:36.rescued. I would like to retire with 14 million euros, the problem

:04:36. > :04:41.for Rajoy is he says the bail out is for Spain, but no-one believes.

:04:41. > :04:46.That The Spanish opposition party was

:04:46. > :04:52.doubtful this would be the last bail out Mr Rajoy negotiates.

:04:52. > :04:55.needs to comply with the fiscal target, that means cutting 2.5%

:04:55. > :04:59.from here to the end of the year. That is something that hasn't

:04:59. > :05:03.happened in a structural deficit in any country in the EOCD in the last

:05:03. > :05:07.20 years. It is very difficult. Even more so when the economy is

:05:07. > :05:10.depressed. There is no economic activity. If you don't have

:05:10. > :05:18.revenues you need expenditure, one after another. First, of course,

:05:18. > :05:22.tough raise VAT, then there is going to be, well -- you have to

:05:22. > :05:27.raise VAT, and then there will be cuts in unemployment and pensions

:05:27. > :05:33.if that is not enough. At the centre of the problems, Spain's

:05:33. > :05:40.local savings banks, the cajas, they lent too much in the boom, and

:05:40. > :05:46.went on lending to show the appearance of prosperity. The

:05:46. > :05:51.management hit the scale of the losses in cajas Madrid, before

:05:51. > :05:55.pleading for a 21 billion rescue deal last month. So anyone with a

:05:55. > :05:58.stick in the Spanish banking system, this soon will not feel very much

:05:58. > :06:02.like a victory. Many branches like this one will close, many workers

:06:02. > :06:07.will be sacked. Many shareholders will be penalised, and a lot of

:06:07. > :06:13.savers actually bought shares. Plus, I understand, plil on the stable is

:06:13. > :06:16.the option of penal -- still on the able is the option of penalising

:06:17. > :06:20.the banks through what is called a bail-in. The economy is shrinking,

:06:20. > :06:25.one in four adults has no job. The fear remains that global investor

:06:25. > :06:34.also pull their money out of Spain, if the strategic problem of the

:06:34. > :06:39.eurozone remains unsolved. Clearly the current eurodesign is

:06:39. > :06:44.not sustainable. We need euro 2.0 we need a guiding light to say what

:06:44. > :06:49.it will look like in the next two years. We are in for major reforms.

:06:49. > :06:55.Banking union is mandatory and urgent we. Need to start making

:06:55. > :06:58.some -- urgent. We need to make headway in fiscal union and

:06:58. > :07:03.federation, without that the euro is doomed. This was bail out like

:07:03. > :07:06.no other. The Finns and the Dutch and the Germans demanded tough

:07:07. > :07:11.conditions, more Austerty. But the rest of Europe said, -- austerity,

:07:11. > :07:21.but the rest of Europe said enough austerity. Don't ring the bells too

:07:21. > :07:23.

:07:23. > :07:30.loud, but it might work. This strange event is the first time

:07:30. > :07:37.Europe has bailed its debts. It has doubt Spain time and space. We will

:07:37. > :07:41.find out how much when the Greeks vote on Sunday.

:07:42. > :07:46.Paul Mason is still in Madrid. Does this mean the crisis has been

:07:46. > :07:51.avoided? None of you listened to some of the contingency planning

:07:51. > :07:55.that is going on inside the EU. The Reuters news agency today released

:07:55. > :07:59.a leak of what it said was some of those plans. I will give you a list

:07:59. > :08:07.of the things that are being considered. Limits on how much

:08:07. > :08:15.people can withdraw from ATMs, physical patrols at borders to

:08:15. > :08:22.prevent cash flowing over them. The temporary suspension of the shen

:08:22. > :08:27.began agreement. This is the worst -- sheng began agreement. This is

:08:27. > :08:32.the worst case scenario. If this bail out in Spain and whatever

:08:32. > :08:35.happens in Greece does not stablise the situation. I get the sense that

:08:35. > :08:44.something pretty profound has changed within the eurozone, hasn't

:08:45. > :08:49.it? It It has, this battle between Germany trying to impose austerity

:08:49. > :08:54.and rules on the game, and then southern Europe, seen in many parts

:08:54. > :08:59.of the world as victims of the austerity drive. That battle has

:08:59. > :09:03.gone into a little black box, what are the terms of the Spanish bank

:09:03. > :09:07.bail out. The battle is fought about who gets punished and gets

:09:07. > :09:13.money taken away from them. In that battle, one sense is the balance

:09:13. > :09:16.has shifted, President Holiday, alongside Barroso, alongside back

:09:16. > :09:19.room players, people like Peter Mandelson from Britain, still very

:09:19. > :09:26.much central to the whole discussions, they are winning an

:09:26. > :09:31.argument. The argument is, austerity could kill certain

:09:31. > :09:37.countries F it drives them out of the euro, the seismic ness of the

:09:37. > :09:40.event is such that you would have to think of some of the things I

:09:40. > :09:43.listed -- seismicness of the event is such that you would have to

:09:43. > :09:49.think of some of the things I was talking about. What sort of

:09:49. > :09:52.timetable are we talking about? are looking now at next Sunday's

:09:52. > :09:56.Greek election. The polls there stop. It is illegal to do an

:09:56. > :10:01.opinion poll in Greece a certain time before the elections. We don't

:10:01. > :10:05.know how this is played out. It is pretty obvious, from the contacts I

:10:05. > :10:09.have in Greece, that it has strengthened the hand of the left

:10:09. > :10:13.in Greece. Who are saying, if you text each other, as Mr Rajoy did

:10:13. > :10:18.with his economics minister, saying look, we can push a button and

:10:18. > :10:22.destroy the whole thing, people tend to listen to you. We are all

:10:22. > :10:25.waiting to find out what poll that matters, and that is the one on

:10:25. > :10:29.Sunday. If the Greeks vote, and it is entirely possible, 50-50, for

:10:29. > :10:33.them to vote for a left Government. That Government does not want to

:10:33. > :10:37.leave the euro, but it will scrap the austerity plan and then it will

:10:37. > :10:43.be the ball in the court of Mrs Merkel.

:10:43. > :10:48.Thank you. Corbett is righthandman to the

:10:48. > :10:54.President of the European Council, Mitt Romney. He's in Brussels. Can

:10:54. > :11:00.you help us -- Mr Van Rompuy. What is this deal with Spain, is it a

:11:00. > :11:04.bail out or a rescue? It is a loan, from other eurozone countries to

:11:04. > :11:14.help Spain gain time to deal with its banking problem. Where did you

:11:14. > :11:18.find the money? It is from the European financial stablisation

:11:19. > :11:22.fund, which was set up a couple of years ago. It was a tool that

:11:22. > :11:27.didn't exist before this crisis. Now the European Union, or the

:11:27. > :11:30.eurozone, has set up this fund, through which it can lend money to

:11:30. > :11:35.countries that need money to gain time. It is a loan, it is not a

:11:35. > :11:40.gift, it is not grant, it has to be paid back in due course. It gives

:11:40. > :11:44.the countries time to turn the situation around. This money comes

:11:44. > :11:50.from other members of the eurozone? The other members of the eurozone

:11:50. > :11:54.back the fund. They are guarantors for it. It is not that tax-payers

:11:54. > :11:58.in other countries are giving money away, they are guarantors for the

:11:58. > :12:02.loans, loans which will, of course, in due course, have to be paid back.

:12:02. > :12:11.It is possible, presumably, that one of the people backing the loan

:12:11. > :12:16.is Spain herself? Yes, all the eurozone countries contribute to it.

:12:16. > :12:19.So Spain is lending herself money? Just as Britain does with the IMF.

:12:19. > :12:24.Like many countries across the world we contribute to the IMF. It

:12:24. > :12:28.is not unknown, hissor clear, For us to borrow from the I --

:12:28. > :12:31.historically for us to borrow from the IMF. But Spain is one of the

:12:31. > :12:35.countries lending money to Spain? Spain is one of the countries

:12:35. > :12:39.backing the fund, which in this case shrending money back to Spain,

:12:39. > :12:43.as happens -- is lending money back to Spain, as happens in all such

:12:43. > :12:48.cases. Can you help us what with what the Spaniards have to do to

:12:48. > :12:55.justify this loan, do they have to impose austerity measures? Spain

:12:55. > :13:00.has already undertaken a lot of measures to get rid of its deficit.

:13:00. > :13:04.Remember Spain's overall debt levels are not nearly as high as

:13:04. > :13:09.Greece or some other countries. Spain went into this crisis with

:13:09. > :13:12.lower public debt than Germany, even. So it has a certain margin of

:13:12. > :13:16.manoeuvre. The problem here, is with the banking sector in Spain,

:13:16. > :13:22.which, a part of which has gone belly-up. Just as happened a couple

:13:22. > :13:28.of years ago in Ireland. The state has had to bail out the banking

:13:28. > :13:32.sector, to help them also gain time to recapitalise. That is what is

:13:32. > :13:35.happening here. It is a very different case from that of Greece.

:13:35. > :13:42.So the Spanish Government won't be required to cut Government spending

:13:43. > :13:47.in order to justify this loan? Governments are normally required

:13:47. > :13:50.do is cut their deaf sirbgts how they do, that cutting spending --

:13:51. > :13:54.deficit. How they do that is cutting taxes and raising spending.

:13:54. > :13:58.They are sovereign Governments, that is up to them. But Spain,

:13:58. > :14:01.let's not forget, that is already taken measures to bring their

:14:01. > :14:04.deficit level down. Their accumulated debt level over the

:14:04. > :14:08.years much lower than other countries, but their deficit in

:14:08. > :14:15.recent years shot up. And they are gradually bringing that down over

:14:15. > :14:20.the next two or three years, as planned.

:14:20. > :14:24.When they have to repay this money, who gets priority? Those are the

:14:24. > :14:34.details that will now be negotiated as the small print of this deal is

:14:34. > :14:35.

:14:36. > :14:42.put together. You have no views on who gets priority? I haven't looked

:14:42. > :14:45.into that aspect myself. whether the EU ought to get

:14:45. > :14:48.priority over bondholders? That is subject to the negotiations of the

:14:48. > :14:53.small print of the deal. The key thing is the principle of the deal

:14:53. > :14:57.has been agreed. Very quickly the new mechanism is working. The money

:14:57. > :15:01.is there to lend when needed to a country that needs it. To help give

:15:01. > :15:07.them time to turn the corner. The details still need to be looked at.

:15:07. > :15:09.When the Greeks or the Irish or anybody, whose Governments have had

:15:09. > :15:17.to impose austerity measures in order to get money from Europe,

:15:17. > :15:22.when they look and say Why do they not have to do what we have to do,

:15:22. > :15:26.will they be entitled to renegotiate their loans? Each loan

:15:26. > :15:31.is tailored to the particular problem of the country concerned.

:15:31. > :15:34.As I said earlier, in Spain it is not an overall problem of

:15:34. > :15:37.accumulated public debt. It is a problem of their banking sector

:15:37. > :15:42.that needs helping out and bailing out for a certain period of time.

:15:42. > :15:46.It is quite different from some of the other countries that have

:15:46. > :15:50.received loans. You can't come back and renegotiate? In all case, you

:15:50. > :15:54.refer to austerity being imposed by the European Union, supposedly.

:15:54. > :15:58.Imagine for one moment that these loans were not being given to the

:15:58. > :16:01.countries concerned. Then they would be facing far worse austerity,

:16:01. > :16:09.much more difficult to turn the situation around. The loans give

:16:09. > :16:12.them time to put their house in order, or over a longer period of

:16:12. > :16:16.time with less difficulty than there would otherwise be.

:16:16. > :16:20.The same consideration, of course, applies to Spain, doesn't it?

:16:20. > :16:27.course, yes. To anyone. And not just countries within the your Roy

:16:27. > :16:32.zone. You never -- eurozone. You never hear much about the countries

:16:32. > :16:36.outside the eurozone, Romania, Turkey, who have had loans from the

:16:36. > :16:42.IMF. It is not necessarily to do with being in the euro, or a crisis

:16:42. > :16:46.of the euro as such. Some countries in the eurozone and outside, have

:16:46. > :16:51.problems of deficits and debts. They are being helped with loans.

:16:51. > :16:56.Reuters was reporting earlier today that there have been contingency

:16:56. > :17:02.plans drawn up over there. For what will happen if Greece does tumble

:17:02. > :17:08.out of the euro. These apparently include the suspension of the

:17:08. > :17:12.shengian agreement, limits on the amount of money withdrawn from the

:17:12. > :17:18.cash machines and similar emergency measures. Have such measures been

:17:18. > :17:23.drawn up? We are not planning for a Greek exit from the country, that

:17:23. > :17:28.would make a bad situation worse. The question of whether there are

:17:28. > :17:32.certain consingcy scenarios being looked -- contingency scenarios

:17:32. > :17:35.being looked into by different Government, I would imagine there

:17:35. > :17:43.are. That is different from planning for it to happen or hoping

:17:44. > :17:48.it will happen. The firm view is an actual exit of Greece from the

:17:48. > :17:54.eurozone would compound bad situation and make it worse.

:17:54. > :17:58.More bad memories are on display at the Leveson Inquiry of the

:17:58. > :18:03.relationship between press and politicians. Everyone there

:18:03. > :18:07.testifys under oath, and the former Prime Minister, Gordon Brown, had a

:18:08. > :18:10.very different version of events than the Murdochs. The political

:18:10. > :18:17.class of this country keep asserting that the public doesn't

:18:17. > :18:21.really give a toss about the relationship. David Grossman does.

:18:21. > :18:26.This inquiry has heard from many who say they were victims of the

:18:26. > :18:29.press. Today it heard from another. Gordon Brown says it was his

:18:29. > :18:33.determination to frustrate news corporation's commercial ambitions

:18:33. > :18:38.that turned them against him. To the advantage of the Conservatives,

:18:38. > :18:42.who he says were only too willing to get cosy. There was a red line

:18:43. > :18:50.in everything I ever did, there was a line in the sand across which I

:18:50. > :18:52.could never cross. If there was any question a vested from interest was

:18:52. > :18:57.trying to promote something that was against the public interest, I

:18:57. > :19:03.could have nothing to do with that. I think you can serve up dinner,

:19:03. > :19:07.but you don't need to serve up BSkyB as part of the dinner.

:19:07. > :19:13.Brown was asked about a story that ran on the front page of the Sun

:19:13. > :19:17.newspaper, on November 2006. It was to do with the health of his then

:19:17. > :19:24.four-month-old son. Previously News International has said it received

:19:24. > :19:28.explicit permission from the Browns to run the story. Today, Mr Brown

:19:29. > :19:33.flatly contradicted them. I ask you if any mother or father was

:19:33. > :19:37.presented with a choice as to whether a four-month-old son's

:19:37. > :19:40.medical condition, your child's medical condition, should be

:19:40. > :19:44.broadcast on the front page of a tabloid newspaper, and you had a

:19:44. > :19:48.choice in this matter, I don't think there is any parent in the

:19:48. > :19:52.land would have made the choice that we are told we made, to give

:19:52. > :19:56.explicit permission for that to happen.

:19:56. > :20:01.Let's remember what Rebekah Brooks has previously told the inquiry.

:20:01. > :20:04.She was the editor of the Sun at the time the story ran. Did you

:20:04. > :20:09.have the express agreement of the Brown, freely given, to publish

:20:09. > :20:13.this story about their son? Absolutely. If the Browns had asked

:20:13. > :20:17.me not to run it, I wouldn't have done. Why did your wife in

:20:17. > :20:22.particular remain good friends with Mrs Brookes, to the extent of

:20:22. > :20:27.arranging a 40th birthday party in Chequers for her in June 2008,

:20:27. > :20:32.attending her birthday party in 2008, and Mrs Brookes we had

:20:32. > :20:37.anything June 200, if what you say is correct? -- 2009, if what you

:20:37. > :20:42.say is correct? Sarah is one of the most forgiving people I know, she

:20:42. > :20:45.finds the good in everyone. versions of events there, two

:20:45. > :20:50.versions of a phonecall that perhaps happened or didn't happen

:20:51. > :20:54.in the autumn of 2009. In it, Gordon Brown told Rupert Murdoch

:20:54. > :20:59.that he was declaring war on the Murdoch empire. Or, perhaps he said

:20:59. > :21:05.no such thing. Here's what Rupert Murdoch

:21:05. > :21:11.previously told the inquiry that Mr Brown had said. Your company has

:21:11. > :21:16.made, declared war on my Government. And we had no alternative but to

:21:16. > :21:21.make war on your company. How could Mr Brown have declared war on your

:21:21. > :21:27.company? I don't know, I don't think he was in a very balanced

:21:27. > :21:31.state of mind. And here, is what Mr Brown told the inquiry today.

:21:31. > :21:35.conversation never took place. I'm shocked and surprised that it

:21:35. > :21:39.should be suggested, even when there is no evidence of such a

:21:39. > :21:42.conversation that it should have happened, but there was no such

:21:42. > :21:46.conversation. And the contradictions didn't end there. If

:21:46. > :21:50.you look back at the press cuttings, or indeed, thumb through any one of

:21:50. > :21:55.a number of biographies and autobiographies of the Blair years,

:21:55. > :21:58.you would have thought that whilst at the Treasury, Gordon Brown ran a

:21:58. > :22:03.merciless political briefing operation. Designed, not only to

:22:03. > :22:07.dispatch Tony Blair, sooner than he wanted to go, but also make sure

:22:07. > :22:16.no-one else but Gordon Brown stepped into Number Ten in his

:22:16. > :22:20.place. Today, we learned that was not what happened at all. Were your

:22:20. > :22:23.aides involved in using the media to attempt to force Mr Blair's

:22:23. > :22:29.resignation, this was in 2006? would hope not. Were they involved?

:22:29. > :22:34.I would hope not. I have no evidence of that.

:22:34. > :22:37.Did you authorise your aides to brief against Mr Blair? No. Do you

:22:37. > :22:41.think they may have done so without your explicit approval, even with

:22:41. > :22:46.your knowledge? If they did so, it was without my authorisation.

:22:46. > :22:52.Next up was the Chancellor, George Osborne. He told the inquiry that

:22:53. > :22:56.at the time he had no view on the BSkyB News Corp bid and he

:22:56. > :22:59.dismissed the idea that there was some sort of grand conspiracy,

:22:59. > :23:04.where the Conservatives gave Rupert Murdoch their support for the bid

:23:04. > :23:08.in return for the Sun's endorsement. It is complete nonsense. The facts

:23:08. > :23:11.simply don't bear it out. We had no idea that they wanted to bid for

:23:11. > :23:16.Sky before the general election. When the general election had

:23:17. > :23:23.happened, Dr Vince Cable, a Lib Dem, is put in charge. And you have to

:23:24. > :23:27.be a real fantasist to believe that come these events we knowingly

:23:27. > :23:30.allowed Vince Cable to be secretly recorded. We knowingly allow the

:23:30. > :23:34.Telegraph not to publish information. That information

:23:34. > :23:38.emerges in the middle of the afternoon. We then, all as part of

:23:38. > :23:42.this cunning plan, put Mr Hunt in charge. Mr Osborne too was asked

:23:42. > :23:48.about the appointment of Andy Coulson as Downing Street's

:23:48. > :23:52.Director of Communications. I have seen people suggest that the reason

:23:52. > :23:56.we hired him was because of his connections with the Murdochs or

:23:56. > :23:58.Rebekah Brooks, or his knowledge of the internal workings of News

:23:58. > :24:03.International, that was not a consideration. Over the next three

:24:03. > :24:06.days we will be hearing from more senior political figure,

:24:06. > :24:11.culminating in the Prime Minister himself on Thursday.

:24:11. > :24:14.Let as discuss now with Phil Hall, a former editor of the News of the

:24:14. > :24:18.World, the Conservative MP, Louise Mensch, and Steve Richards of the

:24:18. > :24:21.Independent, who also produced a documentary series for the BBC on

:24:21. > :24:25.Gordon Brown's time as Prime Minister. We did ask countless

:24:25. > :24:30.former associates of Mr Brown to comment on his testimony, but most

:24:30. > :24:35.appeared more inclined to run repeatedly into an electric fence.

:24:35. > :24:40.Now, Louise Mensch, there are so many contradictory versions here,

:24:40. > :24:45.they can't all these people be telling the truth? No they can't.

:24:45. > :24:49.They absolutely can't. Who do you believe? In the matter of Gordon

:24:49. > :24:52.Brown's child, I believe Gordon Brown, and I think it is a complete

:24:52. > :24:57.red herring whether permission was given or not, because the privacy

:24:57. > :25:02.of a young child was grossly invaded. In the matter of this call

:25:02. > :25:05.with Mr Murdoch, I believe Rupert Murdoch, if only because Gordon

:25:05. > :25:09.Brown's testimony that he never briefed against Tony Blair ever,

:25:09. > :25:12.and didn't authorise his aides to do it was so lacking in credibility

:25:12. > :25:15.that it undermined everything else he said. If you looked on social

:25:15. > :25:20.media today, the reactions of the whole political lobby in

:25:20. > :25:25.Westminster, left and right, from every single paper, poured scorn on

:25:25. > :25:28.this. Did you believe Gordon Brown today? In relation to the specific,

:25:28. > :25:31.I don't know. I have no idea whether he said this to Rupert

:25:31. > :25:34.Murdoch, I have no idea what happened there. I don't think it

:25:34. > :25:37.matters very much. Do you have an idea about whether he briefed or

:25:37. > :25:44.his people briefed against Tony Blair? What I know is he was

:25:44. > :25:49.obsessed with the media, and he was being utterly disengineous to

:25:49. > :25:53.declare a sort of indifference to the media. When he said he wasn't

:25:53. > :26:00.reading papers? He read every paper, someone told me he used to read, as

:26:00. > :26:04.Prime Minister, the papers at 5.00am, by 5.30am he was incredibly

:26:04. > :26:08.depressed. But someone did say you are the only person who reads all

:26:08. > :26:12.the papers, so that is a distorted view of how you are perceived. What

:26:12. > :26:17.he should have said is I'm obsessed by the media, and totally justified

:26:17. > :26:22.in being so, because they remain a powerful shaper of opinion. I think

:26:22. > :26:27.if George Osborne and others...He Didn't say? He undermined the

:26:27. > :26:32.validity of an argument about the power of a media by affecting an

:26:32. > :26:37.indifference to it. Hall, did you believe what he had to say? Not --

:26:37. > :26:40.Phil Hall, did you believe what had he to say? Not a word. There was an

:26:40. > :26:46.interesting clip there, Rebekah Brooks said she didn't have any

:26:46. > :26:49.permission from the Brown, she said if they asked me not to run it, I

:26:49. > :26:53.wouldn't V I think she went to him, and they are very close, the heart

:26:53. > :26:59.of the Leveson thing is how close were leading politicians and the

:26:59. > :27:07.Prime Minister to rooxrooxroox and News International -- Rebekah

:27:07. > :27:10.Brooks, and and News International. I would imagine they went and said

:27:10. > :27:14.they are going to run it and the Browns were afraid.

:27:14. > :27:20.If they had gone to the press commission it wouldn't have money,

:27:20. > :27:23.Tony Blair used it on several occasions. Would you have run it?

:27:23. > :27:26.No, the Press Complaints Commission, I use it now all the time, if you

:27:26. > :27:30.overstep the mark, newspapers won't run the story. I don't see how that

:27:30. > :27:33.has anything to do with it. The privacy of the child was invaded, I

:27:33. > :27:36.don't know that permission could rightly have been given to

:27:36. > :27:40.undermine the privacy of that child's health which will follow

:27:40. > :27:45.him for the rest of his life. journalist has the right to ask a

:27:45. > :27:50.parent if they can run the story. four-month-old baby. He was

:27:50. > :27:54.appallingly treated? The parent has a right to say no and stop the

:27:54. > :27:57.story. I can tell you, 30 years of this, I know many parents who bring

:27:57. > :28:01.these issues to the public, and talk about them to highlight the

:28:01. > :28:08.issues around treatment of children, the media ka and if sillties

:28:08. > :28:13.available to them -- medical facilities available to them.

:28:13. > :28:17.was right to raise the bizarre tax on Afghanistan. The Sun could have

:28:17. > :28:21.gone for them on a few issues, and weirdly, Rebekah Brooks said that

:28:21. > :28:24.was the reason they decided to switch sides. He was obsessed about

:28:24. > :28:27.dealing with Afghanistan, partly actually, to reassure the Murdoch

:28:27. > :28:34.newspaper that is he could deal with this in the same way that Tony

:28:34. > :28:40.Blair did. He was right to say that some of the focus on him in

:28:40. > :28:47.relation to, that and his personal integrity on that was utterly

:28:47. > :28:52.unfair. It was pointed out by Robert Jay, that he had an absolute

:28:52. > :28:58.disgust with Rebekah Brooks, he went to a 40th birthday party and a

:28:59. > :29:03.wedding and his wife joined a bizarre pyjama party. That is a

:29:03. > :29:06.valid point about, I put "they", because he wasn't the only one.

:29:06. > :29:10.They were frightened of the power of people like her, Rebekah Brooks.

:29:10. > :29:15.They did everything they possibly could to keep her, or get her on

:29:15. > :29:18.side. I'm not sure it was just being frightened. I remember Rupert

:29:18. > :29:21.Murdoch at the select committee testifying clearly that the Prime

:29:21. > :29:25.Minister he was closest to was Gordon Brown. The person he felt he

:29:25. > :29:30.had most in common w and the strongest friendship he formed with

:29:30. > :29:34.recent Prime Ministers. The great contrast was with the way George

:29:34. > :29:42.Osborne appeared today. A much more polished performance in the opinion

:29:42. > :29:49.of many observers, and yet very revealing of a kind of inner moral

:29:49. > :29:53.vacuousness, surely, on the the question of the Murdoch role in

:29:53. > :29:55.BSkyB. The only consideration apparently was holding the

:29:55. > :29:59.coalition together. That is a serious consideration. You have to

:29:59. > :30:06.take it on value, as George said, the facts, the deal was given to

:30:06. > :30:09.Vince Cable. I don't think the most far fetched News Corporation

:30:09. > :30:12.conspiracy therapists, could think that giving it to Vince Cable would

:30:12. > :30:18.advance Rupert Murdoch's interests. You believe that the Chancellor of

:30:18. > :30:21.the country has no view on the ownership of BSkyB? He gave his

:30:21. > :30:26.view today, it was an honest one. He said it was an inconvenience, it

:30:26. > :30:29.may be code for something we can't repeat on the BBC. As he rightly

:30:29. > :30:32.said, he knew he would get into trouble with one set of media

:30:32. > :30:37.groups or the other. If you please News Corporation, you displease the

:30:37. > :30:43.BBC, the Telegraph, the Mail, the other media companies, the

:30:43. > :30:46.Independent, who didn't want to see News Corp take over. It was a

:30:46. > :30:49.political performance and he came out of it well. He treated it as a

:30:49. > :30:53.conversation and followed the arguments. The arguments were

:30:53. > :30:57.pretty valid. They have all got a strong argument. I think Cameron

:30:57. > :31:03.will have an easy day on Thursday, when, basically they say, of course

:31:03. > :31:07.we want to get a better press, we had our ideas that we wanted to be

:31:07. > :31:10.put out in the most benevolent climate ever. I don't blame them

:31:11. > :31:14.trying to do. That that is in relation to the Andy Coulson

:31:14. > :31:17.appointment, part of his interrogation today. On BSkyB I

:31:17. > :31:21.never believed the idea they did a deal before the election. It would

:31:21. > :31:25.have been absurd, he explained very clearly why that was the case.

:31:25. > :31:29.There remains the murky area of the switch from Vince Cable to Jeremy

:31:29. > :31:33.Hunt, which I think still remains murky and there are questions to be

:31:33. > :31:39.answered. He suggested that was Jeremy Heywood's idea? I don't

:31:39. > :31:43.think he will appear actively culpable. He was delighted, because

:31:43. > :31:47.we have seen the texts. In the Leveson evidence, the texts and e-

:31:47. > :31:51.mails are more revealing than the one-to-one interrogation. He didn't

:31:51. > :31:54.appear to think that Cable had done anything wrong, it was merely a

:31:54. > :31:58.question of balance within the coalition? He wanted to make sure

:31:58. > :32:01.that Vince Cable remained part of the cabinet. I think he dealt with

:32:01. > :32:06.that in quite a sensible way, which is to be open about it. He didn't

:32:06. > :32:10.want a crisis in the coalition by Vince Cable leaving, that was an

:32:10. > :32:15.honest and wise answer. What did you make of George Osborne's pitch

:32:15. > :32:19.today? I thought he was very comfortable in his own skin. I

:32:19. > :32:22.think because his involvement was fairly narrow, yes he had a

:32:22. > :32:25.conversation with Coulson at the very beginning. In the end the

:32:25. > :32:31.decisions were made by the Prime Minister. I don't agree, I don't

:32:31. > :32:35.think he will get an easy ride. David Cameron? I think he will have

:32:35. > :32:42.to explain his relationship with Rebekah Brooks and whether he was

:32:42. > :32:47.right to send mess js with "lol" in them. He is a smooth operate to I'm

:32:47. > :32:52.sure he will handle it well, but I think he will get a rough ride.

:32:52. > :32:56.They were friends, that is what he will say. I gave George Osborne

:32:56. > :33:00.lots of brownie points when asked if he was a friend of Andy Coulson,

:33:00. > :33:04.he said yes he was and still will be a friend of Andy Coulson but he

:33:04. > :33:10.hasn't been able to speak to him for a year. People appreciate that

:33:10. > :33:13.honesty. There was stark contrast and noticable today approaching

:33:13. > :33:17.various people who were very close to Gordon Brown. Not one of them

:33:17. > :33:20.wanted to come out and talk. This was a man who was Prime Minister

:33:21. > :33:24.only a couple of years ago. What has happened? A lot of the people

:33:24. > :33:28.who went through the trauma of the Premiership, and the build-up to

:33:28. > :33:33.the Premiership, with the whole Blair-Brown rivalry, are simply

:33:33. > :33:37.still getting through it all. There is no doubt there have been many

:33:37. > :33:41.fallings out. The problem he had to today in relation to that, was if

:33:41. > :33:45.he had started saying, yes, there were briefings, yes, Tony Blair and

:33:45. > :33:49.I were falling out all over the place. Someone as obsessed about

:33:49. > :33:53.the headlines as he is, would know that would have been the headlines

:33:53. > :33:57.for tomorrow. He wanted the headlines to be about News

:33:57. > :34:00.International. But not surprisingly, therefore, you don't get many

:34:00. > :34:06.people coming out to depend. That I think that was what was happening

:34:06. > :34:11.today. A piece of modern social engineering has come to a dramatic

:34:11. > :34:15.end. The Red Road housing estate in Glasgow was designed as part of the

:34:15. > :34:21.solution to that city's problems of overcrowding of slums and tenement.

:34:21. > :34:25.A big, bright, futuristic answer to a generations old problem. In the

:34:25. > :34:29.1960s, the new tower blocks were the solution to poor housing.

:34:29. > :34:33.Within decades they were the problem of poor housing, and

:34:33. > :34:43.yesterday they succumb today high explosive. Catrin Nye reflects on

:34:43. > :34:46.

:34:46. > :34:50.how you -- utopia became distopia. Red Road, for more than 40ies these

:34:50. > :34:53.vast imposing structures have loomed -- 40 years these vast

:34:53. > :34:57.imposing structures have loomed over Glasgow. They were homes, the

:34:57. > :35:07.solution to a post-war housing crisis they will be mourned as

:35:07. > :35:10.something greater. You are part of something big and grand. Look at

:35:10. > :35:20.the size of these. This will all disappear from the face of the

:35:20. > :35:21.

:35:21. > :35:25.earth. Weather through years of neglect, -- whether through years

:35:25. > :35:29.of neglect, loathed as they were loved. A big dumping ground, big

:35:29. > :35:34.grey stones. But to their very end, they have provided the sanctuary

:35:34. > :35:40.for which they were created. man is 60 years old, he labours on

:35:40. > :35:47.usual all the buildings, is there to the last in 1969. He builds the

:35:47. > :35:52.concrete castle for the paths to go from building to building. Sleek,

:35:52. > :35:57.space age, mammoth, Rid Road says his mother, Red Road, houses for

:35:57. > :36:03.thousands. There aren't many blocks of flats

:36:03. > :36:06.that can claim a novel, a film, and countless artworks dedicated to

:36:07. > :36:10.their memory. But Red Road was always some what unique. The

:36:10. > :36:15.initial plans for these buildings were fairly modest. By the time

:36:15. > :36:19.they were completed in 1969, they had become something of an

:36:19. > :36:26.architectural experiment. The highest tower blocks in kwhruep,

:36:26. > :36:35.home to almost 5 -- Europe. Home to almost 5,000 people. For each of

:36:35. > :36:39.the residents, an entirely different new way of living.

:36:39. > :36:44.# My heart's on fire # Elvira

:36:44. > :36:53.These were the very first of those residents, and they have stuck with

:36:53. > :36:58.Red Road until the very end. Jean McGeough moved in on day one,

:36:58. > :37:07.she picked a ticket at random, and on it was her flat number and floor.

:37:07. > :37:11.They got offered in St Peter's drive, we walked from there --

:37:11. > :37:14.Petershill Drive, we walked up from there, we thought they would be

:37:14. > :37:21.left. And they said look at the crowds. People were out taking

:37:21. > :37:26.pictures and doing this and that. I went, oh my goodness. They went

:37:26. > :37:33.are you going to be a tenant? I said I hoped so. I had my neighbour

:37:33. > :37:37.with me, I said you pick. She said no, pick it yourself. So I picked 9,

:37:37. > :37:43.so I'm quite happy I got it and I was happy. I'm very happy there.

:37:43. > :37:48.Very, very, very happy. No half measures about Glasgow

:37:48. > :37:54.housing, everything's looking up at the development. Red Road came in

:37:54. > :37:59.the latter part of the boom years for high rise. 4,500 people will

:37:59. > :38:03.have a pilot's eye view of the great city, and enjoy it in modern

:38:03. > :38:13.comfort. Immediately post Second World War, Glasgow was faced with

:38:13. > :38:13.

:38:14. > :38:18.an acute housing shortage problem. Some Soviet delegates studying

:38:18. > :38:21.rehouse pring in the party. flats created the ultimate in

:38:22. > :38:31.communal living, a project on the scale you wouldn't see today.

:38:32. > :38:41.

:38:41. > :38:45.cost, so far, more than �6 million. Look at the housing, they are

:38:45. > :38:49.amazing, on a formal level, they will never exist in the world again.

:38:49. > :38:54.The sheer size of the buildings is symbolic of the post-war social

:38:54. > :38:57.consensus. The idea that what you had in Glasgow, was these

:38:57. > :39:00.overcrowded inner city tenements, and there was the idea that people

:39:00. > :39:04.were going to get better housing and move out. They were going to

:39:04. > :39:08.get this light, this modernist ideal of light and fresh air, and

:39:08. > :39:11.so forth. But there was still the idea, of course, of the social, the

:39:11. > :39:14.community. That is what you have here. You have 5,000 people, but it

:39:14. > :39:19.is a community that is here. It might be created artificially. But

:39:19. > :39:24.that is essentially what the welfare state was. The recreation

:39:24. > :39:33.of communities from these delap dated and poverty-striken

:39:33. > :39:41.communities that we find in the earlyly to mid-20th century.

:39:41. > :39:46.Road had purpose built pubs and shobs and even an underground bingo

:39:46. > :39:50.hall. It was a golden period, all the problems with high rise mere

:39:50. > :39:57.quirks of life. The shift to this way of living was so significant

:39:57. > :40:02.for Glasgow, it earned a place in the city's folk history.

:40:02. > :40:08.# I'm a skyscraper # I live on the 19th floor

:40:08. > :40:13.# But I'm not gonna play You can see it in the culture,

:40:13. > :40:16.there is the idea that the culture of kids coming home from school, in

:40:16. > :40:21.the old tenement areas, their mother would throw them out a

:40:21. > :40:25.sandwich, a piece, they call it, from first, second, third, fourth

:40:25. > :40:31.floor, there is a song about that saying you can't fling pieces out

:40:31. > :40:36.of a 20 storey flat. Your mother won't throw a story down 8 floors

:40:36. > :40:43.to you. One of the pigeons or -- 28 floors. One of the pigeon also get

:40:43. > :40:50.it before you do. # The odds against reaching it

:40:51. > :40:55.# Are 99-1 From that initial wave of hope, soon came a far more harsh

:40:55. > :40:58.reality for Red Road. The high rise towers became symbols of poverty

:40:58. > :41:08.and alienation. The very problems from which they were designed to

:41:08. > :41:14.

:41:14. > :41:21.Like many of the first residents, Jeanne moved out of Red Road, and

:41:21. > :41:29.by the time, as Alan Peter lived there in the late 1980, it had a

:41:29. > :41:34.very different kind of community. No longer a desirable place, they

:41:34. > :41:38.were housing those with nowhere to go. As Alan's neighbours robbed for

:41:38. > :41:44.a living, people weren't taking it in turns to clean the hallways any

:41:44. > :41:49.more. Black cab dropped us off at the back of the building, when you

:41:49. > :41:54.get out and you see this big huge monster building. You were like is

:41:54. > :42:00.this it, and the entrance is around the front.

:42:00. > :42:06.Two residents beforehand, who stayed there before me, had both

:42:06. > :42:11.jumped out the kitchen wind development was it a QikSave. When

:42:11. > :42:17.you look out of the kitchen window you could see where they landed.

:42:17. > :42:21.the late 1980s there was a lot of unemployment. Hair win was coming

:42:21. > :42:24.back in. It was rough. -- Heroin was coming back in. It was rough,

:42:24. > :42:30.there was a lot of unemployment, they were closing down the

:42:30. > :42:34.shipyards as well. There was no no jobs about. Crime

:42:34. > :42:38.seemed to be the easiest way to pay for things. If you were a single

:42:38. > :42:48.guy and you put your name down for flat, you would get shoved here.

:42:48. > :43:00.

:43:00. > :43:03.That is just the way it is. It was In the early 1970s, there would be

:43:03. > :43:07.queues for the lifts in the morning for men going to work, in the

:43:07. > :43:11.shipyards. But coming into the 1980s, there was no problem getting

:43:12. > :43:16.a lift in the morning to go to work. There was the idea of despair, the

:43:16. > :43:24.idea that things were coming to an end, there was no future in places

:43:24. > :43:34.like this. We get this problem word, residualisation, which really

:43:34. > :43:41.

:43:41. > :43:44.This could have been the end of the story for Red Road. There is

:43:44. > :43:50.another, final chapter, created as much by international developments,

:43:50. > :43:56.as those locally. The flats became a home for asylum

:43:56. > :44:03.seekers, initially those fleeing Kosovo, but residents from as many

:44:03. > :44:08.troubled countries as you can name. Congalese, Libyan, huge numbers of

:44:08. > :44:14.Chinese, fleeing politicians. There are more horror stories, family of

:44:14. > :44:18.Russians jumped to their deaths from the flats in 2010.

:44:18. > :44:26.For some, though, Red Road has echoed its original purpose, a

:44:26. > :44:30.place that inspires awe, that creates communities.

:44:30. > :44:36.This man arrived in 2007 from Pakistan. What did your family

:44:36. > :44:42.think of their new home? It is just like what you see in the aeroplane.

:44:42. > :44:48.You just see down. You think that you are just in the aeroplane. We

:44:48. > :44:52.can see all the city of Glasgow from our flat. If we go to the

:44:52. > :44:58.kitchen there is a view of mountains, if we come to the living

:44:58. > :45:04.room there is a view of the whole city. The families were just

:45:04. > :45:08.together. My younger daughter was born here. She was born in the Red

:45:08. > :45:15.Road flats. You have a Red Road baby? Yeah.

:45:15. > :45:21.We have a Red Road baby. And so on, and so on, and so on.

:45:21. > :45:31.Till the tenants were gone and the buildings only steel and girders

:45:31. > :45:45.

:45:45. > :45:49.That report was from Catrin Nye. And tomorrow morning's front pages

:45:49. > :45:54.now. The Financial Times has news that Jose Manuel Barroso of the

:45:54. > :45:58.European Commission would like to see all European banks, right

:45:58. > :46:01.across the European Union regulated by the same superviser. The

:46:01. > :46:05.Independent has pictures of the England football team who managed a

:46:05. > :46:15.1-1 draw with France this evening. Doctors face a ban on denying

:46:15. > :46:33.

:46:33. > :46:43.treatment to the elderly. According That's it for tonight. Parting is

:46:43. > :47:08.

:47:08. > :47:13.The rain will ease a little bit overnight across southern counties,

:47:13. > :47:16.it won't be as intense as over the last 24 hours. Still there in the

:47:16. > :47:19.morning. Heavy showers once again developing across Wales, south-west

:47:19. > :47:23.England and Northern Ireland. Much of northern England will be dry

:47:23. > :47:27.with brightness. Temperatures could reach 16-17, cooler on the east

:47:27. > :47:30.coast. A dryer day across the Midland and East Anglia, eventually

:47:30. > :47:35.drying up across the south-east. Some rain in Kent and Hampshire

:47:35. > :47:38.until late in the day. In the south west of England, slow-moving, heavy,

:47:38. > :47:42.thundery showers could develop, as they could across parts of west

:47:42. > :47:48.Wales, like today. They will be very much hit and miss, but some

:47:48. > :47:51.places could get a real soak. For Northern Ireland expect heavy,

:47:51. > :47:56.intense downpours, not everywhere catching one. Some places in the

:47:56. > :48:01.east will stay dry. Much of Scotland will stay dry, showers few

:48:01. > :48:04.and far between. But temperatures struggling into double figures. Not

:48:04. > :48:07.much warmer on Wednesday. The likelihood of heavy showers for

:48:07. > :48:12.Northern Ireland. Further south for parts of Wales and south-west

:48:12. > :48:15.England. There could well be some lively downpours across Wednesday.