05/09/2012 Newsnight


05/09/2012

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Britain in 2012 a country so expensive that even when parents do

:00:13.:00:19.

work, their children can still go without. Politicians talk of hard

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working Britain, but what is it like when your parents have to work

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too hard. My dad works two jobs. But I don't get to see him much,

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when he's off he does carpets, I feel left out, because I really

:00:35.:00:39.

love my dad. We ask the former Labour

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communications director, who has just launched a Save the Children

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campaign in this country, a single mother, the Education Committee

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chair, and the man from the at this tank founded by Iain Duncan Smith.

:00:52.:00:56.

They are back from the beaches, so it is time for the eurocrisis to

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resume. Tomorrow the head of the European Central Bank hopes to stop

:00:59.:01:04.

the anxiety. What does the man who was President Obama's chief

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financial adviser think he has to say. Come to that, how does he rate

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George Osborne? Also tonight, Newsnight uncovers

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new evidence suggesting melting Arctic ice will have a dramatic

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effect on our climate. Is now the time to kick back, relax, and learn

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to love cloudy Augusts. The summer area of ice has already gone down

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from eight to four million square kilometres, as it collapses we will

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lose another four million. Four million square kilometres is about

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1% of the surface area of the earth. The new leader of the Green Party,

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:01:52.:01:52.

and a prominent climate change sceptic, are both here.

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You have heard of Save the Children, you may have given to one of their

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appeals, to help suffering children overseas. Yet now, for the first

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time, this affluent society's charity, is running a campaign

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about deprived children in this country. Their conclusions are

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troubling. They say that in the poorest households, nearly two

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thirds of parents say they have cut back on food. Over a quarter have

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gone without meals, and a fifth say their children have gone without

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new shoes, when they have needed them. We are going to talk about

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why it is happening, and what we maybe can do about it. First, we

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ought to hear from some children themselves, all of them in families

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:02:42.:02:44.

struggling in the downturn. I'm Andrew, I'm 12 years old. I

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like to be a marine biologist. I want to be people that go around

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the world discovering art facts of Diana And Actaeon saurs, an

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archaeologist, a scientist and a professional football player --

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dinosaurs, and an archaeologist, a scientist and a professional

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football player, I can't be all three, I will be too fired. Once we

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were playing football on a field, and there was a gang on there with

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a gun. We heard shots fired. The park, a lad got killed outside

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there, and was dumped on our street. I had to witness him trying to be

:03:32.:03:42.
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revived. Snails. Another brick. volunteer in a youth project, and

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we come up here and dig out all the weeds. We got rid of 12 tonnes of

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rubbish. We plant flowers. We are making it so it is like a nature

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trail, you can go down and pick berries, and look at the nice

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flowers. We were struggling to pay bills, and me dad lost his job, and

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his contract, so they were struggling, we had to live with our

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nan for a bit. And then my dad got another job, two jobs, and started

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working with that. Me mum helped as well. Me mum, she will miss out on

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a new pair of shoes, to get us uniforms, or a bit more expensive

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stuff, clothes and that. Or she will get a cheaper type of food to

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feed us. When she can't afford to get and pay bills, she will get

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dead stressed and be worried about it. Found a worm. Hey there little

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:05:11.:05:12.

guy. He's trying to eat my finger. My dad works, two jobs. Four nights,

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two nights, two days. But I don't really get to see him much, because

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when he's off, he does carpet, and I feel left out, because I really

:05:24.:05:34.
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love my dad. REPORTER: Would you I'm 13 years old. I'm 12, my name

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is Precious. I would like to be either a medical doctor, or an

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economist. I like maths, and I'm good with my numbers. I either want

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to be a lawyer, or study medicine. I like my free school meals because

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they are good, and they help. Even though I'm happy for it. Sometimes

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the food is costly, which is not even nice, there might be a

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sandwich which is �1.80, and you only have �2 on your dinner ticket,

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you won't have anything to buy anything else. Sometimes it fills

:06:29.:06:39.
:06:39.:06:41.

me up, sometimes it doesn't. chips fill you up, they are cheaper,

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if you were to go to a supermarket and buy a pack of fruit or

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something, which I don't tend to do, they are more expensive. I like

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strawberries, I like mangos and pomegranates. Say there was one

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mango for �1, you may think to yourself, what is the point of

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buying that one mango, and you can have a pack of chips that will fill

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you up even more. We normally do a cake stall to raise money for us.

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We make fairy cakes. You you get extra money so you can spend it on

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stuff you like. We normally do it with our youth groups too. That's

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not funny! We just want to show other children on the road that

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there is more to do than wasting your time being silly on the road,

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:07:51.:07:51.

creating gangs. School uniform is very expensive. My school uniform

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costs �380 just for me. That wasn't including any of my white T-shirts,

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my school shoes, my bag or anything, just main stuff like the jumper and

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the blazer and the skirt. My school uniform was really expensive, it

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was twice as much as her's. I only got one blazer, because I had to

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get a big-sized blazer to last me quite long. We are privileged, when

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you look across the road to the other houses, which are more posh.

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Then, on our house some people may judge it from the outside, they

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might say on the outside it looks bad, on the inside it is actually

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nice. We have never been all together on holiday. We went to

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Brighton. But we didn't stay there, I am eight years old. I like street

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dance. I want to be a dancer. Mummy doesn't have enough money to buy

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clothes sometimes. I get clothes off other people. Clothes that

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haven't been used, and some clothes that they have worn. I got to baton

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swirling, swimming and brownies, I like all of them. Mummy knows one

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of the brownie leaders, and the brownie leader says she doesn't

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have to pay for the badges. If I won lods loads of money, I would

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buy loads of presents for my friends for their birthdays, and

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buy loads and loads and loads and loads of presents for mummy on her

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birthday. Sometimes I like to go out for a meal, but I know mum

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doesn't have enough money. She has to spend loads of money on food.

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She feeds us before her, because she wants to make us happy. She

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gives us nice things, and doesn't eat her breakfast. She's hungry.

:10:21.:10:31.
:10:31.:10:38.

My mum always says to me, even universities cost that much, I will

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still go, even if it costs millions of poupbtdz, I will still go. She

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:10:52.:10:58.

wants me to go to university, I do too. I I want to go to university,

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because education means a better life. I want to go to university. I

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do want to, because we're struggling to pay the bills. It's

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like �10,000. I have been saving up quite a bit of money from birthdays

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and things like that. So I have got a head start of getting to

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university. Well, before we talk about some of the issues in that

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film. Our political correspondent is here. To explain how many

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children we are talking about, and what we actually mean by children

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living in poverty. David. You might think it is an easy thing

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to measure child poverty, and you might point to factors like someone

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not having anywhere to live, being undernourished, having inadequate

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clothing. That is certainly the measures that were used by 19th

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century social campaigner, and mercifully, on those measure, there

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is ininfinitely less poverty in Britain than there was 200 years

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ago. Job done. Well, not so fast, in recent decades, policy makers

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and campaigner, have settled on a different measure, relative poverty.

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How well off someone is in relation to everyone else. The most common

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measure of child poverty, favoured by the last Government, is the

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number of children living in households whose income is less

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than 60% of median, or middle income. In 2011, that was �419 a

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week. The Labour Government set a target of eliminating child poverty

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by 2020. And by 2010, they enshrined that in law. And here's

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the good news. Child poverty has fallen, in the past few years. Most

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markedly in 2010/2011, that is not because poorer families have got

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richer, but everyone else has been getting poorer quicker. Leading to

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a reduction in the median income, from �432 a week, to �419. The Work

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and Pensions Secretary, Iain Duncan Smith, has described this as

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perverse, that when times are good we get more poor people, and when

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times are bad we get fewer. He notes that by this way of thinking,

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the simplest way of reducing child poverty, is to collapse the economy.

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The criticism of the Labour years is that ministers fixated on an

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abitary line, and they spent billions on moving people from a

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few pound under the line, to a few pounds over it, without tackling

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the causes of poverty right at the bottom. Like unemployment, family

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breakdown, and addiction. The current Government says it is

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absolutely committed to tackling child poverty, it is just we have

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to get a whole lot better at measuring it. With us is Justin

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Forsyth, the chief executive of Save the Children, and former

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adviser to Gordon Brown and Tony Blair. Tracey Nugent, a lone parent

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from Glasgow. The Conservative MP, Graham Stuart, chair of the

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Education Select Committee, and Christian Guy, from the Centre for

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Social Justice, founded by the welfare secretary, Iain Duncan

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Smith. What is it like to bring up a child who is not only poor, but

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aware of the circumstances? intensifies the stress, which would

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then intensify his stress. He was originally, for a long, long time,

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Adam was my carer, because I couldn't handle the issues I was

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having to deal with. And now, that I'm out earning, I think a lot of

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people think, they have on the rose tinted glasses, thinking I'm OK now.

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Not taking into consideration the amount of debts that we accrued.

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That we are now paying back. are no better off, despite the fact

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you are working? No. Mentally, my mental health, and the fact that

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I'm getting up and going out to work every morning, that is

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absolutely fantastic. However, when I come home at night, the same

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financial issues are still sitting there. I'm very, very aware, over

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the fact, that if I'm not dealing with them properly, it will have a

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knock-on effect to my child, who is then going to adopt those

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behaviours, and perhaps think it is OK not to earn a great wage, not to

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follow their ambition, and not to better themselves. He's growing up

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in a world which he sees shiny, glistening attractive things

:15:27.:15:37.
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daingled in front of him all the time? Absolutely. The area we come

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from, there are very few lone parents, they are women. In the

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area we have, people have a mum and dad, two or three bedroom, a front

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door, back door garden. Adam and I are currently sharing a bedroom. My

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kitchen is in the living room. The only reason we can heat our house

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at this minute, because I got a grant. Are you aware that there are

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fewer people living in poverty in this country than there were, does

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it feel like that to you? Absolutely not. Absolutely not. I

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come from a background where my mum and dad instilled in me that you

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must have a very good and strong work ethic. Unfortunately, because

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of the circumstances that I'm in, and I can't claw myself out of,

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he's going to think that's OK. you surprised when you started

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looking into this situation, in this country? I think we were

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surprised. Because I think what we have heard from children, and

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parents, and we saw in your films, is so many children aren't only

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eating properly or getting a winter coat, but the stress that goes with

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that. That took us most by surprise. What is happening to families, as

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Tracey as said, is a combination of factors that have come together.

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High energy prices are a big factor, unemployment, cuts in benefits,

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high food prices, there is that perfect storm, that is really

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affecting families, that is what makes it really hard. What people

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don't realise, because they have this caricature in their head, that

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most people that are poor in families are undeserving, they are

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drug addicts and dropouts, but actually 61% of families are

:17:16.:17:20.

actually working, where children are poor. They are striving to get

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out of poverty, and they need a bit of a helping hand. Is there a

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solution? I think there is, it doesn't cost the earth either. One

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of the biggest factor, and Tracey knows this full well, is childcare.

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It is a huge factor, actually being able to afford to go into work, and

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earn an income. That saves the Government money if you are in work.

:17:39.:17:43.

So the taxpayer pays this? What we have had is a cut in childcare

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support for the poorest families, it is a tiny investment. You would

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help a million children, with a �400 million investment. That would

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help then get them into work and would mean less benefits and save

:17:54.:17:59.

money longer term. Does that make sense to you? About childcare or

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the general debate. The solution? On childcare I think there is a

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major problem with childcare, I'm not convinced that more tax-payers'

:18:07.:18:10.

money to subsidise the inflated costs of childcare is quite the

:18:10.:18:14.

answer. There are things we can do with childcare to flood the market,

:18:14.:18:20.

make it easier to train as registered child minders, look at

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wrap-around school childcare. By flooding the market will child

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cautious we will reduce the childcare costs, and Government

:18:27.:18:31.

shouldn't keep subsidising that. Childcare is one part of the

:18:31.:18:35.

problem. You must be scandalised by this, when you hear the moving

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stories of the children, talking about what it is like, they have

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got working parents, who have been told get a job and you can get

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yourselves out of poverty, and it isn't happening. They are full of

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dreams and aspirations and hopes and ambitions, I don't know whether

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they will be realised, I hope they are? I do too, we have been at the,

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CSJ, all over the country listening to families like these. The

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interesting thing tonight is what we see as a an aspiration, hope and

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belief in the power of work, even though it is difficult, work is

:19:03.:19:08.

still what people pursue. What is the alternative to work if you want

:19:08.:19:11.

to lift yourself out of poverty and be self-reliant. There is no

:19:11.:19:15.

alternative. It is tough right now, but work is the surest route out of

:19:15.:19:18.

poverty. There is no doubt about that. Do you agree with that?

:19:18.:19:23.

Absolutely. The other thing we saw in the film, from Precious and

:19:23.:19:27.

others, is the power of education, the recognition of the need to get

:19:27.:19:31.

a good education to earn the money. We are in an ever-more competitive

:19:32.:19:34.

global economy, we know we are losing jobs every day at the

:19:34.:19:38.

unskilled level. So the message, which I'm delighted to see had got

:19:38.:19:41.

through to the children there, that needs to go to parents, is that you

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might have been able to leave school without much on the way of

:19:45.:19:48.

qualifications and skills, get a good job, support a family, have a

:19:48.:19:51.

rich and fulfiling life. This generation, increasingly, isn't

:19:51.:19:56.

able to do so. Getting education right, making sure that the 42%

:19:56.:20:04.

last year of children who took GCSEs, 42% of them didn't get five

:20:04.:20:07.

good GCSEs including English and math, which we know triggers a move

:20:07.:20:11.

on to education or employment. are you going to do about it?

:20:11.:20:14.

have to intervene early, there is cross-party agreement on this.

:20:14.:20:17.

Perhaps what happened, and it was understandable, part of the times,

:20:17.:20:23.

but huge amounts of money were thrown in the direction, by the

:20:23.:20:25.

last Government, I don't think, they would accept in many ways,

:20:25.:20:28.

that the long-term routes weren't tackled as effectively as we would

:20:28.:20:32.

like. Now this Government has commissioned Graham allen, a Labour

:20:32.:20:39.

MP, and Frank Field, in this area, looking at early intervention, and

:20:39.:20:46.

the causes of poverty. And the Early Years Intervention will be

:20:46.:20:50.

set up hopefully soon, and look at getting the evidence on the right

:20:50.:20:53.

interventions to support. The Government is doing things like

:20:53.:20:56.

extending free nursery education to two-year-olds, trying to make sure

:20:56.:21:00.

that the children, who all too often from poor families, arrive at

:21:00.:21:04.

school is and they are not able to learn, they are not school-ready,

:21:04.:21:09.

and their confidence is knocked. And children who are born poor end

:21:09.:21:15.

up not getting the qualifications. These problems reinforce each other.

:21:15.:21:19.

Work is a key way out of poverty, we all agree. Not for those kids?

:21:19.:21:23.

It is if their parents get a chance to work and they get a decent

:21:23.:21:25.

income. Part of the problem is they go to work without a decent income.

:21:25.:21:30.

Also, in terms it of getting the more earnings, the more benefits

:21:30.:21:33.

they lose. We have to skew the system, we have to pay for more

:21:33.:21:36.

childcare. We have a mix of prokblems. They reinforce each

:21:36.:21:41.

other. If you are at home, and the energy prices are high, you put

:21:41.:21:45.

their children to bed and they do it in bed. They are so cold. You

:21:45.:21:49.

send their friends home because you can't afford to have them round to

:21:49.:21:53.

cook them a meal. These kids get much less chance at school, they

:21:53.:21:57.

don't succeed at school, they don't get your educational benefits.

:21:57.:22:01.

have to make work pay, we have to reform benefit, which is happening.

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The Universal Credit is an aim to make sure you don't get this

:22:05.:22:07.

disproportionate loss, when you do more hours, so many people would

:22:07.:22:11.

get a job and find themselves worse off. You know about this? I think

:22:11.:22:15.

what a lot of people are forgetting, I'm going to work and paying

:22:15.:22:19.

national insurance and tax, I should be, therefore, entitled to

:22:19.:22:25.

support, to get my child looked after properly. But the other issue

:22:25.:22:29.

is, as well, once they hit first year in Scotland, there no

:22:29.:22:36.

childcare provision at all. Which leaves the children, at a

:22:36.:22:40.

vulnerable age, to become latch-key kids. That is not acceptable.

:22:40.:22:44.

really important to recognise that, whilst Universal Credit, perhaps is

:22:44.:22:47.

far from perfect, what the Government is doing is making sure

:22:47.:22:51.

work does pay. The new system will prevent many more of these cases. I

:22:51.:22:54.

think right now we have a broken benefits system, and work doesn't

:22:54.:23:00.

reward, and people on benefits are penalised by taking work, that is

:23:00.:23:03.

perverse. But the universal benefits system has been a long

:23:03.:23:09.

time in gestation, and will take a long time to get properly grounded.

:23:09.:23:16.

Those children, those 8, 10, 12, 13, 14-year-old children, living in

:23:16.:23:19.

poverty, in this country, making calculation about what they can

:23:19.:23:23.

afford to eat on their called free school lunch, and having a chip

:23:23.:23:27.

because it fills them up. As opposed to fruit. Those children,

:23:27.:23:31.

they are not going to be rescued, are they? They will be, because the

:23:31.:23:35.

new system will help their parents to make sure that work pays them.

:23:35.:23:38.

Interestingly you mentioned the point, let me finish the point. The

:23:38.:23:41.

interesting point about how we measure poverty in this country is

:23:41.:23:45.

a big debate, we heard it in the clip earlier. It is madness how the

:23:45.:23:48.

measure is set. What we see, under the previous Government, for

:23:48.:23:53.

example, �150 billion on tax credits, for a 1%age point

:23:53.:24:00.

reduction in the -- 1% point reduction in the poverty. You were

:24:00.:24:05.

part that have team, and it didn't work? It did work, we lifted a

:24:05.:24:09.

million out of poverty. I actually support the Universal Credit, I'm

:24:09.:24:11.

here as Save the Children, not the previous Government. I think you

:24:11.:24:17.

have to put money into it. You have an extra �3 billion secured in

:24:17.:24:20.

difficult times. If we put some more money towards childcare, we

:24:20.:24:24.

could help a million children. Part of the problem with the Universal

:24:24.:24:27.

Credit, as it is being set up, and we don't know exactly how it will

:24:28.:24:31.

work yet. As you earn more and you begin to bring money in you will

:24:31.:24:35.

lose your benefits. That is the opposite of what it is about, it is

:24:35.:24:40.

about keeping more of your benefits, which is the �3 billion. On

:24:40.:24:44.

childcare they are adding an extra �300 million into childcare and

:24:44.:24:49.

more will receive it. At the moment you have to work 16 hours a week to

:24:49.:24:52.

get childcare cover. If this is the case, why so many people like

:24:52.:25:00.

Tracey and those in the film? have a broken system now, the

:25:00.:25:06.

benefit coming to an area near you, will help. In the boom years, not

:25:06.:25:09.

the post-recession time, the children in the most severe poverty,

:25:09.:25:12.

under the last Government, increased in number. That's not all

:25:12.:25:17.

just to do with failure of policy. There has been a change in the

:25:17.:25:19.

labour market and increasing challenges there. We have to get

:25:19.:25:22.

the long-term conditions right. I think the Government is moving in

:25:22.:25:26.

the right direction. People at home might be saying, the poor you have

:25:26.:25:31.

always with you, there are always going to be poor people, but what

:25:31.:25:35.

is the consequence of children failing to see their aspirations

:25:35.:25:40.

realised, their dreams realised. The sense that you can't do. What

:25:40.:25:45.

happens? It is tragic. And the social cost is appalling, in this

:25:45.:25:49.

country, in an economy, that is relatively still very prosperous,

:25:49.:25:52.

it is completely wrong and an inJews at this. How we measure that

:25:52.:25:57.

poverty is really important. Take the tax credit point, I'm not

:25:57.:26:00.

making a party political point, that �150 billion that went in for

:26:00.:26:04.

the 1% reduk. How would the money have been used, it would have been

:26:04.:26:09.

important to give it to the charities and get ahead of the

:26:09.:26:11.

family breakdown, reform the welfare system and drugs and

:26:11.:26:15.

alcohol. So many of those things make a difference to how much

:26:15.:26:19.

poverty people are in. We will long-term make more difference than

:26:19.:26:23.

anything else. Tracey, how do you keep a sense of dream and ambition

:26:23.:26:30.

and aspiration? Adam does that for me. He bolsters everything that

:26:30.:26:36.

goes on in my life. If it wasn't for his attitude, then I don't

:26:36.:26:43.

think I would have returned to work. The thing is, with children, they

:26:43.:26:45.

are there, they will support each other, without doubt. When you

:26:45.:26:52.

become an adult, it becomes political, and it is just, the

:26:52.:26:56.

wrong people are picked on, in my point of view. It is easy to take

:26:56.:27:02.

it from people that are already down, to kick them while they are

:27:02.:27:07.

down, it is easier that way. The people who don't vote any more, I

:27:07.:27:10.

don't really wonder why that is now. It is because they don't feel as

:27:10.:27:16.

though they are getting anything back at all. I did work before I

:27:16.:27:21.

had ar Adam, and it was mental health issues that me dig my own

:27:21.:27:25.

hole, that I haven't been able to get back out of financially. Now,

:27:26.:27:31.

what I did was, I flitted from the Jobcentre to the Benefits Agency,

:27:31.:27:36.

the Department of Work and Pensions. And nothing happened, I went to One

:27:36.:27:41.

Parent Family in Scotland, within a year, I had a job. Why haven't the

:27:41.:27:44.

Government adopted a more holistic method to deal with all these

:27:44.:27:48.

issues, that is my question. Thank you very much. The summer

:27:48.:27:53.

holiday is over, time for the next installment of the disaster story

:27:53.:27:55.

that is the European single currency.

:27:55.:28:00.

Tomorrow, and I'm sorry if this sounds familiar, we will hear how

:28:00.:28:04.

the European Central Bank will save the euro, or possibly not. The fate

:28:04.:28:07.

of the currency is one of the subjects to be tackled in a elect

:28:07.:28:12.

tue at the London Stock Exchange, by one of the most respected

:28:12.:28:15.

economists in the world, Larry Summers, Bill Clinton's Treasury

:28:15.:28:17.

Secretary, and Barack Obama's Chief Economic Advisor.

:28:18.:28:23.

It is not hard to see why Barack Obama wanted Larry Summers at his

:28:23.:28:29.

side, at a time that he called a time of great peril for America.

:28:29.:28:33.

Summers is used to being close to power, he was economic advise Tory

:28:33.:28:42.

Ronald Regan in the 1980, and back in the White House a decade later,

:28:42.:28:52.
:28:52.:28:53.

with Bill Clinton. He rows through the ranks, and many say his zeal in

:28:53.:28:57.

the US financial markets helped paved the way for the crisis.

:28:57.:29:01.

Summers went back to acedemia, as President of Harvard, just in time

:29:01.:29:05.

to get caught up in one of the early disputes about who really

:29:05.:29:09.

came up with the idea for Facebook. I don't think you are in any

:29:09.:29:13.

position to make that call. I was the US Treasury Secretary, I'm in

:29:13.:29:19.

some position to make that call. Hollywood's take on the Facebook

:29:19.:29:22.

story portrayed Summers as dismissive, and most of all,

:29:23.:29:27.

arrogant. He said pretty accurate. The courts are at your disposelia,

:29:27.:29:32.

anything else I can do for you? The Republicans now have the

:29:32.:29:37.

economic record of Obama, and those, like Summers, who advised him, in

:29:37.:29:43.

their cross hairs. American growth, at 2%, may look rosy, compared with

:29:43.:29:48.

Britain's double-dip recession, but unemployment lies at more than 8%.

:29:48.:29:51.

Only one President has ever been re-elected with jobless figures

:29:51.:29:58.

like. That A little earlier I spoke to Larry

:29:58.:30:04.

Summers, from his current lair, at Harvard. It is yet another decision

:30:04.:30:10.

day for the euro tomorrow, what is the minimum that needs to be heard?

:30:10.:30:18.

I think there needs to be a very clear statement that what needs to

:30:18.:30:24.

be done will be done to ensure the continued availability of finance,

:30:25.:30:33.

particularly to pain and Italy. There needs to be a clear

:30:33.:30:36.

commitment on the part of the ECB to do what is necessary there needs

:30:36.:30:42.

to be a political recognition from the nations of northern Europe,

:30:42.:30:45.

that failure is not an option. that has been the requirement from

:30:45.:30:51.

the start of this crisis, hasn't it, to restore confidence, and make

:30:51.:30:54.

people believe that Governments, if necessary, the European Central

:30:54.:30:59.

Bank, and the rest, will save this currency, will do whatever it takes.

:30:59.:31:02.

And time after time they have failed to instill confidence. Do

:31:02.:31:07.

you think it's been well managed, this crisis? This is surely not

:31:07.:31:13.

going to be a happy chapter in international monetary history. I

:31:13.:31:17.

have often compared this to the Vietnam War. During the Vietnam War

:31:17.:31:22.

in the United States, American policy makers always did what was

:31:22.:31:27.

necessary to avoid immediate collapse, and never did what was

:31:27.:31:33.

necessary to offer a prospect of a long-running solution. And

:31:33.:31:37.

eventually, the policy collapsed around this. Let me ask you,

:31:37.:31:43.

honestly, do you believe in a year's time, there will still be 17

:31:43.:31:47.

members of the eurozone? There can't be any guarantees, we don't

:31:47.:31:51.

know what will happen in Greece. We don't know what political

:31:51.:31:57.

conditions are going to permit, in northern Europe. We don't know what

:31:57.:32:03.

will happen with respect to uncertain banking systems. But I

:32:03.:32:10.

think there is a proper judgment that, having made the momentous

:32:11.:32:15.

commitment to the euro, the right path forward is to try to live with

:32:15.:32:21.

it and do what's necessary to make it work. If the euro were to

:32:21.:32:29.

collapse, how big a deal would that be for the world economy? In ways

:32:29.:32:34.

that that are more negative than has been true historically, and in

:32:34.:32:39.

ways that are larger than is true for some decade now. The fate of

:32:39.:32:44.

the global economy over the next several years, rests heavily with

:32:44.:32:52.

Europe. Europe doesn't have the capacity to be the propulsion, that

:32:52.:33:01.

creates a rapid global expansion. But Europe does have the capacity

:33:01.:33:05.

to be the shock that brings the global economy to a screeching halt.

:33:05.:33:10.

It is the reason why so much of economic and financial diplomacy

:33:10.:33:14.

has centered, including the active involvement of the President of the

:33:14.:33:18.

United States, on Europe over the last year.

:33:18.:33:21.

You mentioned the President of the United States, when asked about his

:33:21.:33:25.

own handling of the economy, and what grade he would give himself.

:33:25.:33:30.

He said he would give himself an "incomplete" grade. What would you

:33:30.:33:34.

give him? I think that's right. I think there was a real prospect of

:33:34.:33:39.

a situation like the US Great Depression, in 2009. If you looked

:33:39.:33:44.

at what happened when the President came into office, employment was

:33:44.:33:50.

falling more rapidly, GDP was falling more rapidly, stock prices

:33:50.:33:53.

were falling more rapidly. All of it, exports, world trade was

:33:53.:33:57.

falling more rapidly all of it was falling more rapidly than in the

:33:57.:34:02.

fall of 1929, and yet, for all the problems we have had a very

:34:02.:34:05.

different path. With nothing like the kind of complete collapse of

:34:05.:34:12.

the economy that the US saw after 1929. That's because of what the

:34:12.:34:16.

President did. What grade would you give George Osborne for his

:34:16.:34:20.

management of the economy? Economic performance has been considerably

:34:20.:34:25.

better in the United States over the last several years than it has

:34:25.:34:32.

been in the United Kingdom. And I believe that relates centrally to a

:34:32.:34:37.

strategic choice, the United States made that, that the British

:34:37.:34:43.

authorities did not make. That was the strategic choice to pursue a

:34:44.:34:50.

strategy of fiscal expansion in the short run, to grow the economy,

:34:50.:34:54.

followed by a commitment to long run fiscal consolidation. In

:34:54.:35:00.

contrast, in Britain, it has been all fiscal consolidation, all the

:35:00.:35:06.

time, and I think it is something that history will not look back on

:35:06.:35:10.

kindly. Sounds to me as if you were giving him something like a D minus

:35:10.:35:20.

in terms of grades? As we pass the mid-term exam, there is real cause

:35:20.:35:24.

for concern about failure. Given what is happening in the British

:35:24.:35:31.

economy. It's life, Jim, but not as we know

:35:31.:35:35.

it, as Dr Spock never said. The evidence of what is already

:35:35.:35:39.

happening to the Arctic, subjects is may be too late to do anything

:35:39.:35:42.

about climate change. We will just have to adapt, big time. It is more

:35:42.:35:45.

than this year's awful summer, because scientists have told

:35:45.:35:50.

Newsnight, that the disappearance of Arctic ice, is effectively

:35:50.:35:52.

doubling mankind's contribution to global warming, which rather raises

:35:53.:35:56.

the question of why we should bother. Not driving to the shops

:35:56.:36:00.

any more. We will be discussing that with Peter Lilley, who has

:36:00.:36:06.

written a new report, which can be summarised as Don't Panic, and the

:36:06.:36:10.

leader of the Green Party in a few moments. We have known for some

:36:10.:36:15.

time that the Arctic ice is melting at a rapid rate. New figures we

:36:15.:36:20.

have been given, subjects the impact of that melt is doubling

:36:20.:36:24.

mankind's contribution to climate change. Now, when we first saw

:36:24.:36:30.

these beautiful shots of earth from space, curtesy of the Apollo as

:36:30.:36:35.

trau not, it triggered the green -- astronauts, it triggered the green

:36:35.:36:39.

movement. But that view has changed. This is what the Arctic looked like

:36:39.:36:46.

in the summer of 1979, and this is what it looked like in 2007, half

:36:46.:36:51.

of the ice had gone. One of Britain's leading ice scientists

:36:51.:36:54.

predict all of the ice could be gone at the North Pole, in summer,

:36:54.:36:58.

within a few years. Well this year there has been another big melt,

:36:58.:37:04.

they are still a few days away from the official minimum.

:37:04.:37:12.

Professor Peter Wadhams has spent the summer on the Arctic ice, using

:37:12.:37:16.

lasers and rob robot submarines to get a picture of what is left. He

:37:16.:37:22.

has also taken part in a BBC Two documentary series, broadcast next

:37:22.:37:27.

month, called Operation Iceberg. On an area, twice the size of

:37:27.:37:34.

Manhatten, where he had to dodge the odd polar bear. He has seen for

:37:34.:37:39.

himself the dramatic decline in sea ice. 30 years ago, then there was

:37:39.:37:46.

typically about eight million square kilometres of ice, left in

:37:46.:37:51.

the Arctic in the summer. And by 2007, five years ago, that had had

:37:51.:37:55.

halved, it had gone down to four million. This year it has gone down

:37:55.:38:00.

below that, and heading for oblivion. And the ice is also

:38:00.:38:06.

getting thinner. The volume of ice at the pole, naturally goes up in

:38:06.:38:10.

the winter and down in the summer. It has been declining over the last

:38:10.:38:18.

30 years. It is now at the lowest level since records began.

:38:18.:38:21.

Estimates that the North Pole could be ice-free in summer in a few

:38:21.:38:25.

years, contrasts with the official view of the Met Office. That the

:38:25.:38:29.

Arctic will not be completely free of ice before the summers of 2030.

:38:29.:38:34.

But it's the effect of losing all that white ice, that matters.

:38:34.:38:39.

The polar icecap acts as a giant parasol, reflecting sunlight back

:38:39.:38:43.

into the atmosphere, in what is known as the albedo effect. 30

:38:43.:38:50.

years ago, the ice looked like this. The Arctic ice covered 2% of the

:38:50.:38:54.

earth's surface, reflecting most of the sun's ray. But half of that ice

:38:54.:38:58.

has now gone. And open water absorbs far more of the sun's

:38:58.:39:04.

energy. Professor Wadhams told us, parts of

:39:04.:39:09.

the Arctic Ocean are now as warm in summer, as the North Sea in winter.

:39:09.:39:13.

Over that 1% of the surface of the earth, you are replacing a bright

:39:13.:39:18.

surface, which reflects nearly all the radiation falling on it, by a

:39:18.:39:22.

dark surface, which absorbs nearly all. The difference, the extra

:39:22.:39:27.

radiation that is absorbed, from our calculation, the equivalent of

:39:27.:39:33.

20 years of additional carbon dioxide, being added by man. If his

:39:33.:39:39.

calculation are correct, that means, over recent decades, the melting

:39:39.:39:44.

icecap has put as much heat into the system as all the C067892 we

:39:45.:39:48.

have generated at that time. If the ice continues to decline at the

:39:48.:39:52.

current rate, it could play a bigger role than greenhouse gases.

:39:52.:39:55.

Professored Wadhams suggests there are uncertainties, cloud cover over

:39:55.:39:59.

the Arctic could change, and help reflect back some of the sun's

:39:59.:40:04.

radiation. But then, another greenhouse gas, me tain, currently

:40:04.:40:09.

trapped in the Arctic methane, currently trapped in the Arctic,

:40:09.:40:13.

could be released and make matters worse. What does it mean for us?

:40:13.:40:16.

could end up with more of the kind of weather that deluged so much of

:40:16.:40:22.

June and July. As the ice melts, this pumps a lot of heat into the

:40:22.:40:26.

lower atmosphere. That has an important effect on the jetstream,

:40:26.:40:30.

and the storm track that impinges on Europe, and changes the weather

:40:31.:40:36.

time scales. Some studies suggest there is increased wet summers over

:40:36.:40:40.

the UK as the ice melts. Other suggests the winter weather could

:40:40.:40:46.

be more snowy and cold, due to the ice decline. It all raises

:40:47.:40:50.

questions, for both sides of the debate about how best to respond to

:40:50.:40:55.

the changing climate. Do we need another new Manhatten project,

:40:55.:40:59.

ambitious engineering skeefpls, such as mirrors in space, or

:40:59.:41:04.

artificial seeding of clouds to keep the panel cool. Does it

:41:04.:41:10.

reinforce calls to save the Arctic, by cutting carbon emissions.

:41:11.:41:15.

The very question we want to discuss with Natalie Bennett, the

:41:15.:41:20.

new leader of the Green Party, and Peter Lilley, who has written a

:41:20.:41:24.

robust rebuttal on the stern committee findings. If that

:41:24.:41:29.

analysis is correct, about what has happened to the Arctic, and what

:41:29.:41:32.

the consequence is. There is precious little point in making any

:41:32.:41:36.

of the adjustments to our lifestyle that you in the Green Party seem to

:41:36.:41:42.

be suggesting? Not at all. We can still make a big impact in cutting

:41:42.:41:46.

carbon emissions. And we can also act in ways that make society

:41:46.:41:50.

better and stronger. We can invest in the future of our society, we

:41:50.:41:54.

must do it now. We just saw the figures in terms of the ice melt,

:41:54.:42:00.

we need to act and now. If the effect of the melting icecap, or

:42:00.:42:05.

melted icecap, is, as is suggested, that will make dam

:42:05.:42:13.

Damn all difference? -- damn all difference? Let's wait, we want to

:42:13.:42:17.

bring industries and farming back to Britain. That is entirely

:42:17.:42:22.

another point to climate change? need to shorten the supply chain to

:42:22.:42:26.

use less fossil fuels, so no carbon emissions. If the damage is already

:42:26.:42:30.

done, what is the point? We can reduce the further damage if we act

:42:30.:42:35.

now and immediate low. We need to do that. I was told to come on the

:42:35.:42:41.

programme and not discuss the science, to take the UN inter-

:42:41.:42:44.

governmental panel on climate change assessment as a correct pro-

:42:44.:42:48.

jex on what the likely trends were going to be -- projection on what

:42:48.:42:52.

the likely trends were going to be. You presented something that

:42:52.:42:56.

purports to be new evidence, which contains something new, it is not

:42:57.:43:01.

peer reviewed by a well known alarmist, and bun come, compared

:43:01.:43:09.

with the IPCC. The IPCC's prediction is this they say sea ice

:43:09.:43:14.

is predicted to shrink in the Arctic and Antarctic, and in all

:43:14.:43:18.

scenario, in some projections, the late summer ice disappears almost

:43:18.:43:22.

entirely by the latter part of the 21st century. They present a graph

:43:22.:43:27.

of all the different projections, none of them shows it melting

:43:27.:43:33.

before the year 2070, on a regular basis in the summer. It used to

:43:33.:43:41.

melt in other times n the 1930s it was warmer in the Antarctic. We

:43:41.:43:50.

have a contentious piece of filming. It is the BBC's policy, not to

:43:50.:43:55.

broadcast anyone who thinks the IPCC is excessive. You do think

:43:55.:44:00.

climate change is happening? I do, I want to work on the IPCC science,

:44:00.:44:06.

not something concocted by the BBC, in an alarmist fashion, which is

:44:06.:44:10.

not peer reviewed. We're not sufficiently co-ordinated to manage

:44:10.:44:17.

to concoct something like that? did, it just had. It was a report

:44:17.:44:22.

printed by the science editor, who -- presented by a science editor

:44:22.:44:24.

who interviewed someone who probably knows more than three of

:44:24.:44:29.

us. You know better than him? know what the IPCC says, and I

:44:29.:44:32.

think their assessment of the science is better than Professor

:44:32.:44:36.

Wadhams, who is a well known alarmist. We know that consistently,

:44:36.:44:43.

all of the indicators of climate change, or global warning, have

:44:43.:44:47.

moved much faster than scientists predicted. Everything has been at

:44:47.:44:51.

the upper end of projection, or on the projections. The fact is,

:44:51.:44:57.

really, Mr Lilley, what you represent, are the last throws of a

:44:57.:45:04.

dying argument. The -- gros of a dying argument. The geological

:45:04.:45:08.

Association of America, last year, entitled its conference, as being

:45:08.:45:15.

about the anthropist scene, we have created a new geological era.

:45:15.:45:21.

is no dispute about the two of you with weather anything is change

:45:21.:45:26.

anything the climate. What needs to be done or what can be done?

:45:26.:45:30.

think we need to project forward, what is likely to happen, on the

:45:30.:45:34.

basis of the best scientific evidence. And the IPCC provides

:45:34.:45:39.

that, not so much BBC person, a bit like. That then work out the

:45:39.:45:43.

economics, and only do things where the costs are less than the benefit.

:45:43.:45:49.

That is what we ought to be doing. I have assessed the Stern Report,

:45:49.:45:53.

and looked at that, it says even on the worst scenario that depict, if

:45:53.:45:58.

we take the action that he proposes, the costs will exceed the benefits

:45:58.:46:01.

for the first century. We are talking of doing something where

:46:01.:46:05.

any returns are going to accrue to people more than a century hence.

:46:06.:46:11.

Should we be going that, the Green Party may think so. Do you want us

:46:11.:46:15.

all to stop flying in the Green Party now? No, we don't want you to

:46:15.:46:21.

start crying. That is not what Stern proposes,

:46:21.:46:26.

let as be sensible, you are being unfair to the Green Party. What we

:46:26.:46:32.

would like to do is relocalise our industries, bring farming back into

:46:32.:46:37.

the UK. Stop flying peas from Peru and beans from Kenya. We want jobs,

:46:37.:46:41.

we want to bring industries back into the UK. All very much positive

:46:41.:46:46.

for the UK, and are good to reducing the carbon emissions at

:46:46.:46:50.

the same time. We can insulate people's homes, so people have

:46:50.:46:57.

warmer and more comfortable homes and and lower fuel bills. You think

:46:57.:47:01.

its benefits way outweigh the costs? We can bring a more healthy

:47:01.:47:06.

life. Timing is key here? Let's look at the situation of the green

:47:06.:47:09.

business. The green economy now accounts for about 9% of the

:47:10.:47:14.

British economy. That is about the same as the finance industries. 5%

:47:14.:47:17.

growth rate every year, year on year. A third of the growth in the

:47:17.:47:23.

UK, last year, came from the green industries. What do you say to

:47:23.:47:30.

that? Let's, if we spend lots on supsidies, we will get a growth in

:47:30.:47:33.

those subsidised industries, at the expense ift other countries paying

:47:33.:47:38.

taxes. If you spent a lot of money building wind turbines, you will

:47:38.:47:43.

get employment in erecting them. You will get less employment in

:47:43.:47:48.

erecting gas turbines that are more efficient, because you are not

:47:48.:47:54.

producing those. Let's leave it there. I do want to resent the idea

:47:54.:48:00.

we should impoverish the people of keenia and Peru, by stopping

:48:00.:48:05.

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