14/06/2012 Newsnight


14/06/2012

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Tonight pl, Cameron at Leveson, how the Chipping Norton set and their

:00:17.:00:26.

colleagues didn't do. And Rebekah Brooks and the text. I'm rooting

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for you, not just personally, but professionally we are in this

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together, and there was an exclammation mark and "yes he Cam".

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My guests are here, what damage has this done to David Cameron.

:00:42.:00:46.

While the Newsnight political panel analyse the fall-out from this

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week's parade the leaders on the stand. Hundreds of witnesses, reems

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of document, millions of pounds, ten months duration, and counting,

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will there be any lasting heritage from Leveson.

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My guests join me. Also tonight, will the Government

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and the Bank of England's roll of the dice to boost the UK economy

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actually work. And Paul Mason looks at the desperation putting Greece

:01:14.:01:19.

into the arms of the far left Syriza Party.

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When a party of Marxists, radical greens and feminists, is getting

:01:24.:01:28.

votes from farmers three hours into the mountains of Athens, something

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is going on. Good evening t may be a piece of

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correspondence that he regrets ever receiving, because contained in

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just 84 words are a set of phrases and connection that is could be

:01:44.:01:47.

seen as defining David Cameron's time as Prime Minister. It was, by

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default, the centre piece of his five-hour appearance in front of

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Lord Leveson. You can bet your bottom dollar, that when Mr Cameron

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set up the inquiry, he had no idea this short text would ping into the

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public domain. Previously in court 73.

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We have had Rebekah Brooks. "LOL", lots of love. Murdoch mur. We had

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no alternative, but to make war on your company. Gordon Brown? This

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conversation never took place. Nick Clegg? I was at the end of the

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table where the children sit. the executive producer, the man who

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gave us this show, made his own appearance. It is on our screens

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now. It is not often you get to see a serving Prime Minister taking the

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oath in court. This week pl, Cameron's predecessor as Prime

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Minister sat in the same chair and abused him of doing a deal with

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Rupert Murdoch. Of course, I wanted to win over newspapers, and other

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journalist, editors, proprietors, and I worked very hard at that,

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because I wanted to communicate what the Conservative Party and the

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leadership could do for the country. I made that argument. I didn't do

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it on the basis of saying, either overtly or covertly, saying that

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your support will mean I will give awe better time on this or that

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policy. Of course the Sun did give the Conservatives its endorsement

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in December of 2009, Labour's lost it" of the headline. If gave the

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Conservatives massive boost going into their conference this week. A

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conference where they introduced the world to this slogan. We are

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all in this together. From the day after that speech, the inquiry saw

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evidence of the close relationship between David Cameron and Rebekah

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Brooks. It was taex that Mrs Brookes sent to Mr Cameron, it was

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the eve of his big conference speech. The text talk about meeting

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for a meal. It seemed Mrs Cameron had dep but

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advertised for her husband attending a News International

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The phrase, "but because professionally we're definitely in

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this together ". What was your understanding of that? I think that

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is about the Sun had made this decision to back the Conservatives,

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to part company with Labour, and so the Sun wanted to make sure it was

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helping the Conservative Party put its best foot forward, with the

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policies we were announcing, the speech I was going to make and all

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the rest of it. I think that is what that means.

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So the adverb "professionally", is covering the fact that the Sun and

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you were bound together, to some extent. I think what it means as

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she put it, we are friends, but professionally, me as leader of the

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Conservative Party, her in newspapers, we were going to be

:05:03.:05:13.
:05:13.:05:14.

pushing the same political agenda. And the "country supper" she refers

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to. Sort of in a forward-looking way, is that the sort of

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interaction you often had with her? Yes, we are neighbours.

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Mr Cameron was also asked about his decision to hire Andy Coulson as

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Downing Street's Director of Communications. It wasn't, he told

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the inquiry, principally to forge closer links with News

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International. If what lies behind the question,

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were you after a News International executive, because this is going to

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make it easier to win over the News of the World, or whatever, no, that

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wasn't the calculation. Mr Cameron was also quizzed at length about

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his decision to give the job of deciding the BSkyB bid to the

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Culture Secretary, Jeremy Hunt. Despite the fact that Mr Hunt had

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already made his views clear, that he supported BSkyB being taken over

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by News Corp. The decision had to be made in something of a hurry.

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Vince Cable did have the job, but he was secretly recorded saying he

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had declared war on Rupert Murdoch. As Culture Secretary, Jeremy Hunt

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would have been the natural person to take on the role. But he was

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known as a Murdoch supporter. The Government's top lawyer, Simon

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Jenkins, was on leave at the time. He -- Paul Jenkins, was on leave at

:06:33.:06:43.
:06:43.:06:50.

the time, he gave his opinion over However, it turns out, that when Mr

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Jenkins cleared Jeremy Hunt to decide the bid, he hadn't been told

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about a rather chummy text message, that Jeremy Hunt had sent to James

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Murdoch in support of the bid. "congratulations on Brussels, just

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Ofcom to go", it said. Nor was he told about a note he had written to

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the Prime Minister, warning that if they block it, the bid, the media

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sector, will suffer for years. contention is what is in the

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private note is not really different to what he said publicly

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indeed what he said publicly is more effusive. I think it is note-

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worthy that we have now got this witness statement from Paul Jenkins,

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the Government lawyer, who says very clearly "skap I'm quite clear

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that my advice to Sir Gus would have been any different had I seen

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the note at the time ". I accept there is proves, but the backing

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two of permanent secretaries and lawyer is quite a strong state of

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affairs. Although Mr Cameron commissioned

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this blockbuster series, doesn't get to write the script. Today was

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embarrassing, perhaps rather than explosives. Even so, the

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cliffhanger we have been left with, how much, if any, damage has been

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done. To talk about the Prime Minister's

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appearance today, with me are the Conservative Deputy Chairman,

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Michael Fallon, and Tom Watson, the Labour member of the culture select

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committee. Fallon, first of all, the phrase -- Michael Fallon, first

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of all, the phrase from Rebekah Brooks's text "we're all in this

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together", that was made and we thought it was for us, but it was,

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the Prime Minister, David Cameron, and the Chipping Norton set?

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made that point, we were all in this together, and they were. When

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they decided to back the Conservative Party, the leader of

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the party and the editor of the newspaper were in in together.

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the Chipping Norton set were in it with News International, is the

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point we make. What is a country supper? I don't know, if it is an

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embarrassment this text, it is to Rebekah Brooks, she sent it, not

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David Cameron. Obviously he and she knows what a country supper is,

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whether you do or not, this is an intimate gathering? They live quite

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close to each other. Her husband has been a friend of David

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Cameron's for 20-30 years, they see each other at weekends. That

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doesn't prove anything. Is it outlandish to say she had a hand in

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the speech that came the next day? Yes t the paper had only just

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decided to put its weight behind the Conservatives. It is

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uncomfortable? For her. It is also for David Cameron? Why, he had been

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trying to win over the support of the newspapers, he has been trying

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to win over the support of all the other newspapers. That is why we

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chose him as leader, it is his job. It wasn't friendship, it was one-

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sided friendship, it was not a two- way street, it was Rebekah Brooks

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courting David Cameron she was a friend of her husband's foreyears,

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and there is no mystery about. That he was on the stand for five hours

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today. He answered every single question, if this text is all you

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can come up with, I don't think that is sufficient evidence of some

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conspiracy. The point s the text, as embarrassing as it is, it might

:10:10.:10:13.

be uncomfortable, but, in fact, there was no smoking gun, no

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problem about the News International bid for BSkyB. We

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heard today it had actually followed what should have happened,

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Cable was then followed by Jeremy Hunt, there was no problem. Michael

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is right on, that the text was deeply embarrassing, and showed the

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closeness of the relationship. Where I was more disappointed today

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was the fact that David Cameron seemed lukewarm on the process. And

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wasn't prepared sketch out his ideas about what reform would look

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like. My fear for in the last few weeks, is that the coalition are

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beginning to go cold on Leveson. I think he really owes the Dowler

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family and the country a greater explanation about what he intends

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do when Leveson reports. It will be interesting because Lawrence

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Leveson will not be keen to hear. That your suggestion will be that

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nothing much will come out of it, simply because David Cameron didn't

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show his colours today? You know I think everyone now knows they were

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very close. We just saw mores conversation of that today. More

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woreing -- more confirmation that have today. More worryingly, we are

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seeing PR people saying unless Leveson deals with this over the

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Internet it will be flawed. This strikes me as the beginnings of the

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Government to go kopbld it and put it into the long -- cold on this,

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and put it into the long grass. That would be a betrayal. He missed

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the opportunity to restate the case for Leveson. Looking at one of the

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other major topics of conversation today on Andy Coulson. Don't you

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and other Conservative MPs feel kind of let down by David Cameron

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over this. Now we know he wanted to get to the part of the country he

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couldn't really get to. That is why he hired Coulson. There were four

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other candidates. This was not only a mistake, it was an error of

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judgment? With hindsight all these things look easier. At the time he

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sought assurances from Andy Coulson, he got assurances from Andy Coulson.

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The same ashourpbss were given to parliament. They were given to --

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assurances were given to parliament. They were goifrpb a court of law.

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If it turns out those -- given to a court of law. If it turns out those

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assurances were false, that was down to Andy Coulson. It was

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incredibly regretable that when you wanted to get on and bring on

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policies, the Coulson affair was hijacking what you were promoting?

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That is correct. That is why we have gone forward with the inquiry

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to find a better way forward for these issues. What was striking by

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the Prime Minister's evidence today is he finished talking about the

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Dowler case. To show this isn't just about celebrities and people

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who can afford lawyers, but we need a situation where we have a system

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that provides redress to families like the Dowlers and others. Even

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the almost always patient Lord Leveson said last month he was

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ready to go back to productive judicial work. His phrase. That may

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be some way off. There are still many more witnesss to hear from.

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And then the judge has to think deep thoughts.

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Since David Cameron established the Leveson Inquiry last July, it has

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already cost more than �2 million. There have been over 300 witnesses

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in the hot seat, and the publication of 500 pieces of

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evidence, since the father and mother of murdered schoolgirl,

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Milly Dowler gave evidence in front of Lord Leveson in November.

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felt like such an intrusion into a really, really private grief moment.

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They include three former prime ministers, six cabinet ministers, a

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host of celebrities, and even a splash of TV presenters. Most

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facing Lord Leveson's attack job, chief inquisitor, Robert Jay.

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are formally presenting this as your evidence to our inquiry.

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cameras were installed in court 73 in the Royal Court of justice to

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broadcast the hearings worldwide, as only court participants and 14

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members of the public are allowed actually to sit in. The testimony

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is due to end in July, although the judge's report is not expected

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until the Autumn. Here to discuss the legacy of the Leveson qieorny

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are a former editor of the Times, Simon Jenkins, phone hacking victim,

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Abi Titmuss, ex-tabloid reporter, Richard Peppiatt, and the Labour MP

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culture select committee member. From what we saw today, Simon

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Jenkins, of the awkward closeness, between politician and journalist,

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is that in itself not a good subject from the Leveson Inquiry to

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air. We need to hear about these things, don't we? We need to hear

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about them, we have heard about them for several months. It is not

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unusual, nothing knew about it. It is worth knowing about things that

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were probably hidden and should be brought into the open. I have no

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problem with that at all. I think it is great pity an opportunity is

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going lost. This is being run as a show trial for the Murdochs, but

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honestly if there is serious things to discuss about journalistic

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ethics you need to be balanced about it. It shouldn't be a court

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of law t should be a seminar, or committee of inquiry, rather than

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this take-dog figure, going for everyone in a Richard Nixon way.

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be fair, it is not just Murdoch in the frame, the conversation is

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about other newspapers as well? Hardly, you could be forgiven for

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thinking this is a show trial of the Murdoch empire. The Murdoch

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empire was trying to exert political pressure, no doubt about

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t every newspaper does and every proprietor has. Is that what you

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think? It's him just defending Rupert Murdoch. There is Richard

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Peppiatt talking about what toxic tabloid journalism is really like,

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Abi Titmuss here has been attacked. This is PR from the media people.

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Abi Titmuss, your phone was hacked, you took a settlement. Do you feel

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that watching this inquiry we are actually getting something that is

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productive and will make a change, or are you, perhaps, of the mind

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that it will go away, it will just be the same. There was an inquiry

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20 years ago and nothing really changed? I imagine Lord Leveson

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feels the weight of history on his shoulders at the moment. I imagine

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he's keen to make changes. That is the right thing. When it comes to

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press regulation, that is a very difficult question, I think free

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press is vital for democracy. For example, obvious low the media give

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me the information I need to vote, but, therefore, for me, what I

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would like to see regulated is the relationship between press and

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politician, the leaders and the media owners, I would like that to

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be formal and transparent. In your own case, I think you talked about

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it as being one part toxic co- dependency your relationships with

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the tabloids. Did you feel in any way, not that you were complicit,

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but you were in a game? You even if the Faustian pact that Steve kooing

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began was referring. To when I talk about this subject, I start about

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saying, yes I have a relationship with the press, I still do I

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embraced it to begin with to a certain extent. You courted them?

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They came to me I wouldn't say to start off with I courted them. I

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didn't have a choice that they hacked my own or followed me and

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took my picture -- my phone, and they followed me and took my

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picture. I tried to take some sort of control over it. It came toxic

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co-dependance, it was symbiotic. It is very different now. Do you think

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it has changed, the whole question of the relationship between

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celebrities and the red tops? fascinating seeing some of the

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defences put forward by the tabloid editors, picture desks, saying a

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lot of the paparazzi pictures are set up, and the stories are set up.

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What I don't seem to recognise is when you are presenting a story in

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a newspaper, if it is set up, and you are not admitting to the reader,

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you are lying to them. You are pretending something is happening

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that is not. This isn't news, this is entertainment. That is an

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entertainment product. There needs to be a distinction drawn between

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proper public interest journalism and entertainment. The problem for

:18:28.:18:32.

the public is trust has gone in many ways, not only of politician,

:18:32.:18:36.

but of newspapers. That, in a declining market, is a pretty awful

:18:36.:18:41.

thing. Leveson n a sense, has exposed that lack of trust.

:18:41.:18:47.

I think he has. Tom's select committee did a bit of work on.

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That it became ludicrous to the extreme, I'm not a PR man for the

:18:52.:18:57.

Murdoch press, but for the Guardian, I resent the suggestion I am. The

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only way to conduct the debate t seems, that if Tom disagrees with t

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they are hack for the Murdochs. Let's go back to your point. There

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is a real chance here of trying to get a Code of Practise for

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journalist, I don't think it can be handled statutoryly, we tried it on

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a previous committee and we didn't succeed. The Calcot committee, that

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set up the press complaints committee, it was right to say, if

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this is not working in 18 months, we will look at it again. Here we

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are 0 years later, they never looked at it -- 20 years later,

:19:31.:19:36.

they nevered at it again? That was the third committee. Can you make a

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voluntary code? Can you make a code, and plead with a new press

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complaints commity. That is what will happen any way. Plead with

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them to be more tough on journalist, more independent and all of that.

:19:48.:19:53.

You can pass a law and set autopsy quango to run the press, it is not

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on. You are setting up a false dichotomy, with the greatest

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respect. This is not a decision between statutory regulation and a

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free-for-all. There is a huge grey area. Let's be clear, you are in

:20:06.:20:10.

favour of statutory regulation? in favour of a statutory

:20:10.:20:12.

underpinning of regulation independent of Government, and of

:20:12.:20:16.

the press. It will have members of the press involved with it, but

:20:16.:20:22.

there is statutory balances to make sure that politicians cannot

:20:22.:20:28.

interfere with the freedom of the press. Let's not forget that proper

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regulatory system will protect journalists as much as the public.

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It will mean the excesses we have seen, where journalists feel

:20:35.:20:39.

pressure today do immoral and illegal things won't occur because

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there won't be the pressure within the companies themselves. I think

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that is possible. There needs to be a Press Complaints Commission,

:20:46.:20:49.

which is the mediator, between the complaints and the press. There

:20:49.:20:55.

need to be a body overseeing the professionalism of journalism.

:20:55.:20:58.

is why it is so important to have the inquiry, and it is worth having.

:20:58.:21:01.

I spoke to people, knowing I was coming on the show, the general

:21:01.:21:05.

public are bored with it, they think it is all about celebrities

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whose phones have been hacked, who are getting settlements, as you

:21:09.:21:13.

mentioned. It is bring to go the attention issues pertinent to all

:21:13.:21:17.

of us, which is the power of media owners and the relationship between

:21:17.:21:22.

press and politicians. In a democratic society we should be

:21:22.:21:25.

concerned. Isn't there danger the public will be turned away from the

:21:25.:21:28.

politicians and the press, and there has to be a positive outcome,

:21:28.:21:33.

would that positive outcome for you be statutory legislation. I think

:21:33.:21:36.

Richard nailed it on the head. Independent regulation. The goal

:21:37.:21:40.

should be that. We are meant to have independent regulation at the

:21:40.:21:45.

moment? We haven't any regulation, we might be reaching a consensus

:21:45.:21:49.

here. The goal should be to oblige an editor to put a matter right

:21:49.:21:52.

when they have made a mistake, or deliberately done something wrong.

:21:52.:21:57.

The remedy is slightly harder to find, but it is not beyond the wit

:21:57.:22:00.

of man do that. It is very difficult. We are looking for the

:22:00.:22:04.

same thing. We are trying to find some way of making journalists to

:22:04.:22:07.

behave more responsibly when they do their work. Nobody has any

:22:07.:22:12.

quarrel with that. They are up against fierce competitive forces,

:22:12.:22:16.

and actresses and politicians, keen to get on with them in various ways,

:22:16.:22:20.

it is extremely difficult to regulate these relationships. I

:22:20.:22:23.

genuinely believe you won't get there. You won't get a law that

:22:23.:22:26.

makes any sense here. All you can get is some form of discipline,

:22:26.:22:30.

that has to be self-discipline, out of the system you have at the

:22:30.:22:36.

moment. It will be another version of now. It really won't make much

:22:36.:22:40.

difference? I don't think so. you believe after all these months,

:22:40.:22:47.

Lord Leveson must be head in hands listening to this discussion. He

:22:47.:22:51.

wants proper judicial work hast to sit through these endless witnesses.

:22:51.:22:55.

It will be much more than �2 million at the end? If all the

:22:55.:22:58.

money, wasted by Government, I would happily see an inquiry every

:22:58.:23:03.

other year into some element of our political process. I think we have

:23:03.:23:09.

more insight, as a public, into how the machinations of Westminster,

:23:09.:23:14.

how decisions get made, than we have in decades of parliament.

:23:14.:23:17.

have greater participation in democracy because of it do you

:23:17.:23:21.

think? I think so. I think it is refresh to go see when newspapers

:23:21.:23:25.

editors are sending lots of love to prime ministers. This we should

:23:25.:23:30.

know about. I think it is brilliant. I think Lord Leveson put it

:23:30.:23:34.

beautifully in the start of the inquiry, saying who guards the

:23:34.:23:38.

guardians. Do you think it will make any difference, Simon is being

:23:38.:23:42.

cynical here, but doesn't actually think the Leveson Inquiry will make

:23:42.:23:46.

any difference? I hope so. It will take radical and robust proposals

:23:46.:23:50.

all parties can rally behind, I hope he can do it. People were

:23:50.:23:55.

doing far worse things in the 1980s than now. Journalists were doing

:23:55.:23:57.

worse, the relationship between journalists and politicians was

:23:57.:24:02.

closer and more venal. The BBC was getting into bed with politician,

:24:02.:24:06.

and the lawyers getting into bed with politicians. I'm all for

:24:06.:24:09.

exposing things, I agree with Richard to this extent. It wasn't

:24:09.:24:14.

that bad this time. This is not just all about what we are hearing

:24:14.:24:17.

today about David Cameron there were other former prime ministers,

:24:17.:24:19.

including Gordon Brown earlier this week. And then Gordon Brown

:24:20.:24:23.

insisting that there were no briefings, his relationships were

:24:23.:24:28.

all sweet and light. And yet, people were saying, really? Murdoch

:24:28.:24:32.

asked John Major to switch his policy on Europe. Tom you worked in

:24:32.:24:35.

Downing Street when Gordon Brown was there? I didn't do press

:24:35.:24:37.

briefings. The interesting thing for me is every Prime Minister that

:24:37.:24:44.

has been in front of Leveson has denied what, Tony Blair, Alastair

:24:44.:24:47.

Campbell, Gordon Brown denied Damian McBride, David Cameron

:24:47.:24:53.

denied Andy Coulson. They are all at it, then? They should know what

:24:53.:24:57.

their spin doctors are doing in their name. It is pretty

:24:57.:25:01.

inreceivable that they don't? is for them to -- Inconceivable

:25:01.:25:07.

that they don't? That is for them to say, but it is pretty

:25:07.:25:09.

inconceivable. The Chancellor and the governor of the Bank of England

:25:09.:25:13.

announced today they were working together today on an �80 billion

:25:13.:25:17.

pot for lending. Speaking at the Mansion House event, they plan to

:25:17.:25:20.

kick start lending to households and businesses within weeks,

:25:21.:25:25.

through an emergency bank funding scheme. Under the proposal British

:25:25.:25:28.

banks will be offered vital funding at low interest rates, but the

:25:28.:25:32.

money will be linked to bank lending performance. The governor

:25:32.:25:36.

and I will take co-ordinated action on liquidity and funding for new

:25:36.:25:40.

bank lending, in order to inject new confidence into our financial

:25:40.:25:43.

system. And support the flow of credit into where it is needed in

:25:43.:25:47.

the real economy. We are not powerless in the face of the

:25:47.:25:52.

eurozone debt storm. Together we can deploy new fire power to defend

:25:52.:26:00.

our economy from the crisis on our doorstep.

:26:00.:26:03.

We have Allegra Stratton and our Economics Editor with us, Paul

:26:03.:26:08.

Mason, what do you think of it? What is the thinking behind this?

:26:08.:26:13.

One newspaper tomorrow is saying Mervyn King is pressing the panic

:26:13.:26:17.

button. It is not quite that. But people in Government are scared of

:26:17.:26:21.

the effects of Sunday's election in Greece and what it could do to the

:26:21.:26:24.

eurozone and how it would affect our economy, because 40% of our

:26:24.:26:27.

trade is with the continent. It has already had problems. They are

:26:27.:26:30.

announcing tonight a new way of getting money directly out. They

:26:30.:26:33.

had reports for a long time now that small businesses weren't

:26:34.:26:37.

getting lending. Equally mortgages were not passing on the low rates

:26:37.:26:40.

to people. It is an attempt to get it on the treat. If quanative

:26:40.:26:44.

easing was about the same initials of the Queen of England, I would

:26:44.:26:47.

like to think this is the Prince William version. It is much more

:26:47.:26:51.

and they are trying to get it out on to the streets to make it more

:26:51.:26:55.

modern. If it hadn't been for Sunday's elections, all those

:26:55.:26:58.

people, small business, and people with mortgages, would have been

:26:58.:27:03.

banging on for months and not getting results? I think these

:27:03.:27:08.

things were in train, this is a summer of great announcements,

:27:08.:27:12.

somebody said there would be four, it is all the same principle, how

:27:12.:27:15.

do you get much more activity out on to the streets. At the moment it

:27:15.:27:19.

is hogged in the bank and out in the weird computerised money, not

:27:19.:27:27.

thriel in people's pockets. Also, there is a sense -- in people's

:27:27.:27:30.

pockets. Also there is a sense they have to knock each other's heads

:27:30.:27:34.

together and get on with it. We are joined by Paul, filming in Athens.

:27:35.:27:40.

Do you think this will work? Chancellor is doing two things

:27:40.:27:43.

today, and Mervyn King together with him. The first thing is to

:27:43.:27:48.

pump ready cash into the banking system. �5 billion a month, �30

:27:48.:27:52.

billion over six months. That is the equivalent of inflating an air

:27:52.:27:55.

bag in car before the crash happens. We know what the crash will be,

:27:56.:27:59.

here in Athens, whoever wins the election, nobody thinks Greece can

:27:59.:28:03.

do what it is supposed to do under the bail out. The eurozone is

:28:03.:28:06.

facing a pretty decisive moment pretty soon. That is what that is

:28:07.:28:10.

for. The other thing, the bank printing money and lending it to

:28:10.:28:14.

banks so, the banks can swap their bad detects for some good money,

:28:14.:28:18.

and then lend some more. That is what is talked about. That is there

:28:18.:28:22.

to solve a different problem. That problem is the existing policy is

:28:22.:28:26.

not working. The Project Merlin, supposed to get banks lending to

:28:26.:28:29.

small businesses and lending mortgages, is clearly not doing

:28:29.:28:32.

enough for the Chancellor. The other thing this policy is supposed

:28:32.:28:36.

to do, is fill the gap that fiscal policy can't. Obviously the

:28:36.:28:41.

Government is terrified of one thing, that is that we get dragged

:28:41.:28:45.

into this whirlpool of downgrades and counter downgrades that the

:28:45.:28:48.

rest of Europe is undergoing. It is the last moment when the Government

:28:48.:28:53.

thinks it can move on tax and spend. It has to get Mervyn King to move

:28:53.:28:57.

on printing money and doing something creative with it. The

:28:57.:29:02.

problem is, though it doesn't affect Britain's triple-A rating t

:29:02.:29:06.

says that the Bank of England is strong enough to say a bit of risky

:29:06.:29:12.

lending with its own money. That is a kind of unknown ter treatment we

:29:12.:29:19.

wouldn't be in it unless we were expect -- territory, we wouldn't be

:29:19.:29:22.

in it unless we are expecting dire events from Europe. This money is

:29:22.:29:26.

getting out there fast? You say, that there is no detail to the plan.

:29:26.:29:31.

On the bigger scheme, the �80 billion is what they are talking

:29:31.:29:35.

about. The liquidity they can get out fast. The �80 billion to

:29:35.:29:39.

restart bank lend to go small businesses and households, we have

:29:39.:29:42.

-- lending to small businesss and households, we have to see the

:29:42.:29:46.

detail. The Treasury couldn't explain tonight how the money would

:29:46.:29:56.

be swamped from the banks to banks. Is this an admission that Project

:29:56.:30:01.

Merlin has failed? This is pulling out all the stops on Plan A. This

:30:01.:30:05.

is using the hard-won fiscal authority, to get money through to

:30:05.:30:09.

businesses that we needed. That is the suggestion, that you hadn't

:30:09.:30:13.

been pulling out the stops up until now? The economic environment is

:30:13.:30:15.

deteriorating around the globe. We are facing more instability in

:30:15.:30:19.

Greece, we have to work harder at Plan A. But we have the chance to

:30:19.:30:24.

do that now. This wasn't in Plan A. Isn't that the point, you are

:30:24.:30:27.

stretching Plan A, just so you can't call it Plan B? We can

:30:27.:30:31.

stretch it because of the hard-won fiscal credibility. For two years

:30:31.:30:35.

we built it up. We have a stronger balance sheet, now we can deploy

:30:35.:30:40.

that to help the banks get more money through. The other thing had

:30:40.:30:43.

a has changed is the banks are finding it more expensive to borrow

:30:43.:30:47.

on the international market, at the same time they have to stack more

:30:47.:30:51.

capital up for regulatory purposes. The money isn't getting through to

:30:51.:30:55.

home owners who need it and businesses. Paul Mason said it

:30:55.:31:00.

wouldn't affect Britain's credit rating, but does it reveal tonight

:31:00.:31:03.

how worried George Osborne and the governor of the Bank of England,

:31:03.:31:07.

Mervyn King, are? It is an understanding that the economic

:31:07.:31:12.

outlook is deteriorating for this country. We trade enormously with

:31:12.:31:14.

the eurozone. There is more instability there. We have to do

:31:14.:31:17.

everything we can to keep Britain safe through the storm. That means

:31:17.:31:21.

making sure that businesses can get the money they need, not just small

:31:21.:31:25.

businesses, but all businesses, and home owners can get the mortgages

:31:25.:31:28.

they need. How long will you give it before you decide it works or

:31:28.:31:33.

not? The scheme is decided to be up and run anything few weeks. If it

:31:33.:31:39.

increases the stock of running in a few weeks. It increases the stock

:31:39.:31:43.

of lending and if we can get it running this year it should make a

:31:43.:31:49.

difference. Today Paul ventured far from Athens to a village to see

:31:49.:31:57.

what hopes Tierney have -- tis it is have of picking up the --

:31:57.:32:04.

Ahtisaari to see what they have -- For this man the decisions are

:32:04.:32:10.

usually measured in kilos. Kilos of hey, which is expensive, kilos of

:32:10.:32:16.

beef which he rears, but finds hard to sell. This is deep Greece. The

:32:16.:32:25.

mountains of this. Essili, a Greece res nant with the past, and from

:32:25.:32:30.

from which the parties draw their history. Something is happening in

:32:30.:32:35.

the small squares, deep discontent. TRANSLATION: People are desperate,

:32:35.:32:38.

they can't take it any more. We think Tsipras can do things

:32:38.:32:43.

differently let's see what he has to offer. He's never been in power

:32:43.:32:52.

before. TRANSLATION: We are a generation that should be peaking

:32:52.:32:57.

now, if I had known this would happen I would never have gotten

:32:57.:33:00.

married, I'm very worried about them. Most of the young farmers I

:33:00.:33:04.

spoke to in this village said they would spoke for the far left party

:33:04.:33:08.

Tsipras, but more out of desperation than conviction.

:33:08.:33:11.

TRANSLATION: Greece could be out of the euro, which we don't want. But

:33:12.:33:18.

we have to vote for him, because in the last 20 years of PASOK and New

:33:18.:33:23.

Democracy, we saw nothing good. Now let's see what happens.

:33:23.:33:28.

Now, hi no idea they were going to say that. In fact, I came here

:33:28.:33:32.

thinking they would say the exact opposite. But when a party of

:33:32.:33:36.

Marxists, radical greens and feminists, is getting votes from

:33:36.:33:40.

farmers, through hours into the mountains, away from Athens,

:33:40.:33:49.

something is going on. Tsipras's rise has been spectacular,

:33:49.:33:52.

a coalition of the radical left, they never scored more than 5%

:33:52.:34:02.
:34:02.:34:02.

until the crisis. In the may election they scored 17%,

:34:03.:34:07.

and this man, Alexis Tsipras, came the figure head to resistance to

:34:07.:34:12.

austerity. Now they are polling as high as 27%. And within a few

:34:12.:34:19.

percentage points of power. But what would a Syriza Government

:34:20.:34:24.

do? In the first place rip up the bail out deal agreed in March and

:34:24.:34:28.

then says the party's economics expert, tax the rich. For the next

:34:28.:34:31.

four years we want to introduce measures to increase public

:34:31.:34:35.

receipts by 1% a year at least. Raising taxes? Raising taxes.

:34:35.:34:42.

all income tax? It will be income taxes, wealth taxes. It will be

:34:42.:34:46.

taxes on, I don't know, even the church, this Channel Tunnel doesn't

:34:46.:34:51.

pay. What is the Greek word for "goodbye ", as the rich and middle-

:34:51.:34:56.

class leave the one? Well. there is only one answer to capital

:34:56.:35:00.

flight and it is taboo? Capital controls. Would you introduce

:35:00.:35:03.

capital controls to prevent capital flight? You need to introduce

:35:03.:35:09.

capital controls, and all kinds of measures to stop these, the

:35:09.:35:13.

reaction. But capital controls in the eurozone are only legal for

:35:13.:35:17.

security reasons. The Greek left is well aware that would prompt a

:35:17.:35:23.

clash with the euro authorities? we are push today the precipice, we

:35:23.:35:29.

will have to default. If you default you will be forced out of

:35:29.:35:33.

the eurozone? Is it better to default under a left-wing or right

:35:33.:35:39.

left-wing Government. We have Once Seen a Government of Marxist eco

:35:39.:35:46.

radical feminists in the eurozone? To put your mind at rest, we are

:35:46.:35:51.

mild in those things. We are for peaceful change.

:35:51.:35:57.

Greek political commentators believe the Syriza vote is not just

:35:57.:36:01.

left-wing voters moving further left, it is something more

:36:01.:36:05.

emotional. The young people are turning massively towards Syriza,

:36:05.:36:10.

older ones like me tend to go with old parties. But it is people

:36:10.:36:15.

feeling desperate as things evolve in Greece. It is a vote of grief,

:36:15.:36:21.

rather than a vote of anger. People feel helpless, they feel

:36:21.:36:26.

abandoned. So they feel that somebody has stood up for them.

:36:26.:36:31.

This somebody is Syriza. nowhere is that clearer than in the

:36:31.:36:35.

mountains and the villages that many urban Greek also return to

:36:35.:36:40.

this weekend, to cast their votes. It was the small businessmen who

:36:40.:36:44.

formed the backbone of the old political system. Many of them,

:36:44.:36:49.

like this man, feel they have been ruined by the bail out programme,

:36:49.:36:55.

and they despair of politics. will vote more just to say

:36:55.:37:00.

something, for example I will vote Syriza just to say that I don't

:37:00.:37:08.

want these measures any more. This is not working. We need to grow our

:37:08.:37:13.

economy. But you don't believe in the party itself? No, no, no, no.

:37:13.:37:18.

And private polls indicate that Greeks going to this election with

:37:18.:37:23.

a tight margin, between the mainstream and Marxism.

:37:23.:37:26.

We apologise for the technical problems with that film.

:37:26.:37:30.

Gordon Brown, George Osborne, John Major, Ed Miliband, Nick Clegg,

:37:30.:37:34.

Alex Salmond, and today, David Cameron, all got a grilling at the

:37:34.:37:40.

Leveson Inquiry this week. But was it a grilling or a light steam. Our

:37:40.:37:46.

panel are here to give their verdicts. Danny Finkelstein, Sally

:37:46.:37:49.

Morgan, former righthand woman at Downing Streeting, and Miranda

:37:50.:37:52.

Green, one time adviser to the Liberal Democrats. What do you

:37:52.:37:56.

think we learned about David Cameron today, apart from the fact

:37:56.:38:01.

that he's your mate! First of all, prais prime ministers having to

:38:01.:38:04.

answer questions under oath at the Royal Courts of Justice is not

:38:04.:38:08.

great look. The whole thing has been an ordeal for the incumbent

:38:08.:38:13.

party, and more of an ordeal than they thought about when they set it

:38:13.:38:18.

up. The first part of the inquiry which learned a lot about press

:38:18.:38:24.

ethics, that will help in the future. The next section has been

:38:24.:38:27.

less successful, embarrassing for the Government, the texts have been

:38:27.:38:31.

embarrassing. They went after the idea that there was a big

:38:31.:38:34.

conspiracy and didn't prove it, they wasted a lot of time with that.

:38:34.:38:37.

That is disappointing. The public, which has never been that engaged

:38:37.:38:42.

with this part of it, has now become much less engaged with it. I

:38:42.:38:46.

suspect the political consequences of the prime ministers' performance

:38:46.:38:49.

-- the Prime Minister's performance, not what you want, it makes them

:38:49.:38:54.

look out of control, will not be that great, because public interest

:38:54.:38:58.

has waneed. The idea at the beginning of the inquiry that

:38:58.:39:02.

people felt passionate about, now not so much. Did you learn

:39:02.:39:05.

something about David Cameron, how he handled himself today? I thought

:39:05.:39:11.

he handled himself well, he looked uncomfortable at times, as you

:39:11.:39:15.

would expect. It is not great listening to testimony like. That

:39:15.:39:22.

it was excruciating, wasn't it. I suppose what I think Is the sort of

:39:22.:39:25.

damaging smell, or taste that is left at the end of today, really,

:39:25.:39:30.

there was nothing killing there. It was just this added perception of

:39:30.:39:34.

this kind of clique, living a life. It adds to the feeling that they

:39:34.:39:38.

are very separate from the rest of us. That is the problem, I think.

:39:38.:39:43.

The thing was, the text, as has been said several times, was from

:39:43.:39:47.

Rebekah Brooks to David Cameron, not the other way round. It

:39:47.:39:52.

suggested a close relationship, and the language of the text was all

:39:52.:39:56.

about that. Was she quite close to him at the time? I mean I couldn't

:39:57.:40:01.

tell you, but it certainly does, as Sally said, leave this idea,

:40:01.:40:06.

amongst the general public, that there is a cosiness, a media and

:40:06.:40:09.

political elite, it is all terribly chummy, and what is the fate of the

:40:09.:40:12.

rest of the population. It leaves the rest of the population out?

:40:12.:40:16.

important thing to note is they started with that view. I don't

:40:16.:40:19.

think it will have changed much. You don't want it to reinforce that

:40:19.:40:26.

view, do you? No, and I think David Cameron hoped during expenses to

:40:26.:40:30.

separate himself from that view. It is about the whole of the political

:40:30.:40:36.

class. The party political damage, I expect Tom Watson hopes he has

:40:36.:40:39.

induced, more that it has damaged David Cameron's relationship with

:40:39.:40:44.

the rest of the press rather than causing the Tories' problems.

:40:44.:40:48.

largely agree with that, I think the public have switched off and it

:40:48.:40:52.

has done nothing for politics or media. But I do think it is

:40:52.:40:55.

particularly damaging for David Cameron, at the moment. It just

:40:55.:40:58.

adds to that general view of, not just that politicians are different,

:40:58.:41:02.

but that this group are not suffering like the rest of us. They

:41:02.:41:07.

are living a different sort of life. You, from your own background know

:41:07.:41:11.

exactly what happens when things get out of control. It looks to me

:41:11.:41:14.

that Leveson setting the agenda, not the politicians, that can't be

:41:14.:41:18.

good for any of the parties. Let's take Gordon Brown's performance,

:41:18.:41:22.

Gordon Brown looked as if butter wouldn't melt in his mouth. I mean,

:41:22.:41:29.

how did that happen? There was no challenge to that, of course?

:41:29.:41:33.

challenge during the inquiry. really? They let it run. I thought

:41:33.:41:37.

there were two parts of Gordon, there was the section where he was

:41:37.:41:44.

talking about his son. And I think in a sense, there would be a level

:41:44.:41:49.

of sympathy from people listening to 0 that. And there was -- to that.

:41:49.:41:52.

And then there was the briefing and the spinning, you could ask six

:41:52.:41:57.

questions, if you were going to get the answer Gordon gave, why ask it

:41:57.:42:01.

six times. My point of view is it wouldn't convince anybody. With the

:42:01.:42:04.

Liberal Democrats, they have been in parade, looking back, Nick Clegg

:42:05.:42:11.

actually came out of it quite well? I think Nick Clegg is much better

:42:11.:42:16.

talking like a normal person. Funnily enough he returned a bit to

:42:16.:42:26.

the Nick Clegg USP that he has lost so disastrously in Government. He

:42:26.:42:30.

was charming, self-deprecating humour worked very well on TV, and

:42:30.:42:36.

a bonding moment with Brian Leveson. It is true,'s good at that.

:42:36.:42:40.

managed to distance himself, that crack of being at the children's

:42:40.:42:47.

end of the table, was an effective way of saying he's not part of the

:42:47.:42:50.

circle. Is it that the Liberal Democrats don't matter? The thing

:42:50.:42:53.

to remember is people aren't watching. I spent a total of eight

:42:53.:42:58.

days watching the Leveson. But that is because I do that for a living.

:42:58.:43:03.

Other people, they went to work. They didn't watch the inquiry.

:43:03.:43:06.

is the point. You said earlier on that there may well be proposals

:43:06.:43:11.

out of that, and they will have arisen from the early part of the

:43:11.:43:14.

inquiry. The problem is, for the public, this is making politicians,

:43:14.:43:20.

and the press, so far removed from them? The early part of the Leveson

:43:20.:43:24.

Inquiry was gripping and moving. And any journalist would have to

:43:24.:43:29.

lock at it and think, beyond what I even thought, this make as case for

:43:29.:43:33.

having some form of redress, and changing the way the press behave.

:43:33.:43:37.

I think this part of the Leveson Inquiry, particularly after a while

:43:37.:43:40.

beginning to repeat itself, was much less effective and has lost a

:43:40.:43:43.

lot of public interest. The public thought they already knew that

:43:43.:43:45.

journalists and politicians were living separate lives from them,

:43:45.:43:49.

that is how they feel about them. I don't think it has changed that an

:43:49.:43:53.

awful lot. I think it will have forced a change in behaviour.

:43:53.:44:00.

it? To deal with the whole aftermath of Hutton, how did you

:44:00.:44:04.

get things back on track and they didn't stay on track that long?

:44:04.:44:08.

Hutton, I was saying to Danny, beforehand, looking at it, you

:44:08.:44:13.

think, oh no, you set an inquiry up, and it takes over. No matter how

:44:13.:44:18.

stietly you have set up the framework for an inquiry. Once you

:44:18.:44:23.

set it up? It runs itself. can't interfere? It consumes vast

:44:23.:44:26.

hours and days and weeks of activity in the centre. When you

:44:26.:44:29.

look at what else is happening in the country at the moment. How do

:44:29.:44:34.

you get back, you have to weight until Leveson finshes? There will

:44:34.:44:37.

be pause in the summer, they will wait until he finshes and they will

:44:37.:44:42.

need to respond to his propoetsals quickly. Do you -- Proposals

:44:42.:44:46.

quickly. Do you think that is the way to knock it on the head, to

:44:46.:44:51.

respond quickly? An interesting difference emerged between Ed

:44:51.:44:56.

Miliband, Nick Clegg and David Cameron. David Cameron was much

:44:56.:44:59.

less on statutory underpinning, clearly the Conservative instinct

:44:59.:45:05.

is different. There will be a genuine debate about what to do.

:45:05.:45:09.

The Times has been very against statutory underpinning, other

:45:09.:45:13.

moneys are more favourable. There is an appetite for change, it is

:45:13.:45:16.

interesting, John Major's evidence was fascinating this week. Tony

:45:16.:45:19.

Blair appealing for the current Prime Minister to act in the way

:45:19.:45:27.

that he never did. I think there is a moment hire that must be seized.

:45:27.:45:34.

If it -- Here that must be seized. If it isn't seized, public will be

:45:34.:45:37.

doubly disengaged, thinking it is all a waste of time? There are

:45:37.:45:41.

other things going on. We are in the middle two of massive threats,

:45:41.:45:47.

the eurozone, Syria. One of the terrible things this week is we had

:45:47.:45:54.

Leveson and PMQs this week where nobody asked anything about Syria

:45:54.:45:59.

or Europe. The issues that relate to real people at the hands of the

:45:59.:46:02.

press, people are interested. The Government have to do something

:46:02.:46:05.

about it. Do you think whatever happens it withers the relationship

:46:05.:46:09.

between the politicians and the press? In the newspapers, a lot of

:46:09.:46:12.

the consequence is the Tory press has turned on the Tory Party, that

:46:12.:46:16.

is one of the consequences. It will all change soon. Tomorrow morning's

:46:16.:46:21.

front pages. Thank you all very much.

:46:21.:46:26.

�140 billion to kick start the economy. The Independent has the

:46:26.:46:31.

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