:00:10. > :00:15.Tonight, is the deal that was supposed to save the eurozone
:00:15. > :00:18.falling apart? With riots on streets in Madrid,
:00:18. > :00:22.the Spanish Prime Minister says only market pressure can make him
:00:22. > :00:25.take a bail out. Tonight thousands of ordinary Spaniards are once
:00:26. > :00:29.again out on the streets of Madrid, ahead of tomorrow's austerity
:00:29. > :00:31.budget. It could be the biggest economic and political test facing
:00:31. > :00:35.the country since democracy was restored.
:00:35. > :00:40.The biggest beast in the market for Spanish debt tells us how long the
:00:40. > :00:42.country has got before it's forced into a boilout.
:00:42. > :00:47.Newsnight investigates the treatment of hotel workers in the
:00:47. > :00:51.heart of London. We are fighting for already three months, and still
:00:51. > :00:56.it is not ending. That is ridiculous. I'm doing a really good
:00:56. > :01:01.job, I want money for my job. Tonight, David Cameron promises to
:01:01. > :01:05.hunt down Mubarak's missing millions held in Britain.
:01:05. > :01:10.And at the Lib Dem conference. Admitting you can't, in fact, vote
:01:10. > :01:15.blue, and go green, well, of course you can't. To make blue go green
:01:15. > :01:22.you have to add yellow. Nick Clegg turns stand-up comedian, how long
:01:22. > :01:31.will his party be laughing. Did the Lib Dems in Brighton rock our panel
:01:31. > :01:36.of political experts. Good evening. In Madrid, clashes
:01:36. > :01:39.between riot police and protestors, in Catalonia, snap elections
:01:39. > :01:43.designed to be an effective referendum on the region's
:01:43. > :01:48.independence. In Athens, a general strike. This was supposed to be the
:01:48. > :01:52.month that the eurocrisis would be solved. But with the markets once
:01:52. > :01:56.again in turmoil, Britain, once again, sees this crucial market, on
:01:56. > :02:01.our doorstep, faced with the threat of disintegration. We will hear the
:02:01. > :02:04.Spanish Government's latest austerity plan tomorrow. We're in
:02:04. > :02:08.Madrid. Joe, what's happening? Good evening,
:02:08. > :02:11.and welcome to just about 100ms in front of the Spanish parliament.
:02:11. > :02:17.You cannot see it because there are about five rows of riot trucks
:02:17. > :02:21.blocking the way. They are trying to prevent around 1,000 or so
:02:21. > :02:25.protestors from getting anywhere near the build with the
:02:25. > :02:29.announcement tomorrow. The young people here are incan Desant with
:02:29. > :02:32.rage about the austerity they have had to endure and will continue to
:02:32. > :02:37.be endured in the coming two years. Tomorrow that budget will arrive.
:02:37. > :02:41.Tomorrow Prime Minister Mariano Rajoy said he would indeed go for a
:02:41. > :02:46.bail out, if the cost of borrowing remained unsustainably high. It is
:02:46. > :02:56.still unsustainably high, it hit 6% today. The markets aren't exactly
:02:56. > :03:00.buoyed by the sight of violence on the streets of Madrid.
:03:00. > :03:04.Spain is an angry place these days, its young people, hot blooded at
:03:04. > :03:07.the best of times, are now boiling with fury. They are struggling to
:03:07. > :03:11.find the future that was promised them. Half of them have no job, and
:03:11. > :03:15.the other half are being asked to work longer and for less.
:03:15. > :03:18.Over the last few weeks the cost of borrowing for Spain has been
:03:18. > :03:21.falling in the wake of a deal with the European Central Bank. But that
:03:21. > :03:24.has meant very little to ordinary Spaniards who have seen their cost
:03:25. > :03:29.of living and their living standards plummet. So with
:03:29. > :03:36.tomorrow's budget looming and cuts also looming, the anger that you
:03:36. > :03:42.can tense on the streets in Madrid is bound to grow rather than wane.
:03:42. > :03:47.That was in evidence today in Bilbao, as police used rubber
:03:47. > :03:52.bullets against parts of the crowd. While in Madrid, some protestors
:03:52. > :03:56.were baton charged. Tomorrow the Spanish Prime Minister, Mariano
:03:56. > :03:59.Rajoy, who has already raised direct and indirect taxes, is
:03:59. > :04:06.expected to slash spending further, with the health services and
:04:06. > :04:13.education in the firing line. Not having the possibility of
:04:13. > :04:17.having a future, like finding work is impossible here right now.
:04:17. > :04:21.vast majority of people on the streets tonight are calm and
:04:21. > :04:25.peaceful. Most are middle-class and well educated. Social, rather than
:04:25. > :04:30.trade union networks, are the driving forces behind the protests
:04:30. > :04:34.this time of the We say that the democracy is kidnapped, it is
:04:34. > :04:39.kidnapped because the people inside that building, they don't rule any
:04:39. > :04:43.more. They don't have the power to rule, to change what's happening to
:04:43. > :04:47.us. Things are ruled in Brussels. Ironically, it was a meeting in
:04:47. > :04:53.Helsinki, rather than in Brussels that has driven Spanish borrowing
:04:53. > :05:00.costs back over 6% today. The eurozone creditor nation, led by
:05:00. > :05:07.Germany, appear to be unpicking a deal from June, about banking debt
:05:07. > :05:11.and other debt. Specifically to help Ireland. This decision from
:05:11. > :05:16.Spain and other counts effects us a lot more. The real problem for us
:05:16. > :05:23.now, one of the main problems is financing. The protests are not
:05:23. > :05:28.going to affect directly financing, unless people start to think we
:05:28. > :05:32.have not got things under control. Spain is a young democracy, these
:05:32. > :05:36.protests would never have been tolerated by Franco. But with
:05:36. > :05:40.rampent debts, joblessness, and little prospects of growth, one
:05:40. > :05:46.gets the sense that Spain is facing its biggest and economic threat,
:05:46. > :05:50.since democracy was restored. Joining me down the line from
:05:50. > :05:55.Madrid is Miguel-Anxo Murado a writer and journalist, and from
:05:55. > :06:00.California, Mohamed El-Erian, CEO of Pimco, the world's largest bond
:06:00. > :06:04.investor, and a man with more than a trillion dollars invested in the
:06:04. > :06:08.markets. Mr Murado, we are expecting Prime Minister Rajoy to
:06:09. > :06:14.come up with some kind of new austerity package tomorrow, on top
:06:14. > :06:17.of the 65 billion larged pledged, it is crunch time, isn't it? Yes,
:06:17. > :06:21.of course, it will be another austerity budget, and actually not
:06:21. > :06:26.just for next year, it will be for two years, as the mandate by
:06:26. > :06:31.Brussels. Spain, at the end of this process, has to heed a very -- hit
:06:31. > :06:36.a very, very difficult target, a deficit target of 3%. We started
:06:36. > :06:43.this year at 8.9%, so just imagine how difficult it is, and in fact,
:06:43. > :06:47.the problem is that we just learned today that Spain will not meet the
:06:47. > :06:51.deficit target for this year. We will be actually wide of the mark,
:06:51. > :06:57.maybe 7% deficit, for example. So it's been extremely difficult
:06:57. > :07:00.indeed. And Mr El-Erian in California, Mr
:07:00. > :07:04.Rogge, the Prime Minister, said today, if it gets too dear
:07:04. > :07:08.borrowing for Spain on the markets, he will go for a bail out. How long
:07:08. > :07:12.do you think it is before he has to do that. Before he's forced by your
:07:12. > :07:17.industry to just basically go, cap in hand, and ask for the money?
:07:17. > :07:20.should come now, he should go to the ECB now, and ask for it. For
:07:20. > :07:25.the simple reason that already the interest rates are too high. And
:07:25. > :07:29.it's just not just the interest rate on Government debt, it is the
:07:29. > :07:34.fact that capital continues to leave Spain, the private economy
:07:34. > :07:39.continues to implode, and oxygen is sucked out of all the job creating
:07:39. > :07:43.machines. So he should apply, he should get support, and hopefully
:07:43. > :07:48.he can crowd back in private capital. What if he doesn't.
:07:48. > :07:52.Anybody who has had any contact with the Spanish political elite
:07:52. > :07:56.knows they are telling themselves, they may not even need to ask. That
:07:56. > :08:02.the European Central Bank's pledge to buy debt may have been enough?
:08:02. > :08:07.Well, the pledge certainly has done a lot. In the sense that it has
:08:07. > :08:11.lowered borrowing costs by almost 1.5%. But words are not enough. You
:08:11. > :08:15.need actions. So, the borrowing rate will go back to 7% pretty
:08:15. > :08:22.quickly if the Prime Minister doesn't apply for the money from
:08:22. > :08:28.the ECB. The ECB will not disperse without an application from Spain,
:08:28. > :08:31.and a "light" set of policy conditionality. Behind you we can
:08:31. > :08:35.see scenes of relative calm, compared to last night, we can hear
:08:35. > :08:39.the protestors chanting too. These are not just the usual suspects,
:08:39. > :08:45.are they? This is a wide cross section of people we saw last night,
:08:45. > :08:49.can the Spanish people take what is about to be thrown at them? This is
:08:49. > :08:56.actually a hardcore group of protestors, probably representative
:08:56. > :09:00.of a sector of the Spanish youth, it has to be remembered that there
:09:00. > :09:05.is 50% unemployment among the young people. But, they probably don't
:09:05. > :09:10.represent the wider Spanish public, which also resents the cutbacks and
:09:10. > :09:15.the austerity. But demonstrates in a different way, more by sector,
:09:15. > :09:21.say healthcare worker, teachers, they are already protesting in if
:09:21. > :09:26.their own way. Well, they are not likely to take it very well, this
:09:26. > :09:30.new as youturity package. As for what you were mentioning, the bail
:09:30. > :09:37.out, well the reason why the Spanish Government is not making
:09:37. > :09:40.the move, is, well, partly for political reasons, because that is
:09:40. > :09:45.an original election ahead, and Mr Rajoy fears that he could lose that
:09:45. > :09:53.regional election, it is a key election. If he demands, or asks
:09:53. > :10:00.the bail out before that. There is the genuine belief that this could
:10:00. > :10:05.be bad for the Spanish economy, if before that it is not solved the
:10:05. > :10:09.way the bail out will work. If the bail out goes to the debt, certain
:10:09. > :10:15.problems Spain has will actually become worse. What is your guess of
:10:15. > :10:20.what they are doing to introduce tomorrow 0, a soft, papering over -
:10:20. > :10:24.- is it a soft, papering over the cracks type package, will it please
:10:24. > :10:27.the Germans, who want this to be a hard package? There is a police
:10:27. > :10:31.charge going on now, I couldn't hear your question! What is the
:10:31. > :10:38.nature of the bail out, we think Rajoy is putting to the parliament?
:10:38. > :10:42.Is it a fig leaf or serious extra measures? Mr Rajoy, actually what
:10:42. > :10:46.he wants is the bail out would be more or less along the lines that
:10:46. > :10:51.were discussed by Mario Draghi recently. Nothing new? Nothing
:10:51. > :11:01.particularly new in term of extra measures? Not really. You mean the
:11:01. > :11:07.budget? ( loud bangs) Can you tell us the source of explosions we are
:11:07. > :11:11.hearing gr your microphone? It is rubber -- We are hearing from your
:11:11. > :11:17.microphone? It is rubber bullets, the police are charging right now
:11:17. > :11:24.very close to where we are. (loud bangs) I understood you were asking
:11:24. > :11:26.about the bail out or the budget. It seems like discussing the
:11:26. > :11:30.political policy of the political economy might be difficult in the
:11:30. > :11:34.situation you are in. I will go to Mr El-Erian for a moment. The
:11:34. > :11:41.markets are signal, you know the price of those bonds signals, part
:11:41. > :11:47.of that price, signals the is arek of a euro break-up, it is -- the
:11:47. > :11:51.risk of a euro break-up, it is your job to put a price on that, what
:11:51. > :11:55.chance to you give Europe staying 18 members in a year's time? In a
:11:55. > :12:00.year's time there is a pretty high probability that the euro still
:12:00. > :12:03.exists and the eurozone still exists, I'm less sure it will be 17
:12:03. > :12:09.member countries. What your cameras are showing right now is an amount
:12:09. > :12:12.of rejection by the population. Were you to go to Greece, there the
:12:12. > :12:16.rejection is complete by the population, it is economic,
:12:17. > :12:20.financial, social and political. I do not see if you extend a year's
:12:20. > :12:25.time how Greece remains in the eurozone, because everything we
:12:25. > :12:28.have just talked about, multiply that by a million, and you have a
:12:28. > :12:32.very difficult situation in Greece itself. I'm not sure the population
:12:32. > :12:36.there will tolerate just more of the same, because it hasn't got
:12:36. > :12:41.them anything, nor does it promise them a loyalty at the end of the
:12:41. > :12:44.tunnel. Mohamed El-Erian sitting in the HQ
:12:44. > :12:50.of a fund controlling a trillion dollars, thank you, and Miguel-Anxo
:12:50. > :12:54.Murado, in the middle of what looks increasingly like a developing riot,
:12:54. > :12:57.stay safe, thank you very much gentlemen. Now, low pay, long hours,
:12:57. > :13:02.hard physical work, that's what you might expect to find in the hotel
:13:02. > :13:07.cleaning sector. It is an industry, in London at least, now, almost
:13:07. > :13:11.entirely staffed by migrant labour. In 2009, Newsnight went undercover
:13:11. > :13:14.to expose exploitation at one of the most expensive hotels in the
:13:14. > :13:19.capital. That investigation ultimately led to compensation for
:13:19. > :13:22.13 workers involved. This summer, with rooms packed out for the
:13:22. > :13:27.Olympics, has the industry itself cleaned up the act? There is some
:13:27. > :13:30.strong language in this, the first of a two part report on conditions
:13:30. > :13:34.into the hotel industry, and how those conditions affect east
:13:34. > :13:42.European and British workers. This report contains strong
:13:42. > :13:46.language. It was the summer we will never
:13:46. > :13:52.forget, a six-week party, all watched by a million visitors from
:13:52. > :13:58.around the world. For London's top hotels, business was booming. Room
:13:58. > :14:03.prices had never been so high. Everybody had to smile, and you
:14:03. > :14:08.have toe, you know, welcome the -- to, you know, welcome the guests.
:14:08. > :14:11.We have to show them, everything is perfect. But amid all the Olympic
:14:11. > :14:16.euphoria, what about a different kind of visitor? The person hidden
:14:16. > :14:22.away in the background, keeping the whole operation going? It was hard,
:14:22. > :14:25.really hard, it is not like we can have excitement because it is
:14:25. > :14:32.Olympic time, for us it was a really hard job. These are the
:14:32. > :14:38.staff who clean the carpets, wipe the bathrooms and make the beds.
:14:38. > :14:42.This is the story of their summer, of outsourcing, low pay, and claims
:14:42. > :14:48.of exploitation, of new immigrants and disgruntled British workers.
:14:48. > :14:54.had had a phone call to say that if the girls didn't like the way that
:14:54. > :14:58.the company was running it now, that they could, can I swear? They
:14:58. > :15:03.could fuck off! And not come back, because she would have a coachful,
:15:03. > :15:07.or a mini-bus full of other people to take her place, to take
:15:07. > :15:12.everyone's place. The Hilton Waldorf is one of
:15:12. > :15:15.London's iconic five-star hotels, it was home to VIPs like Michael
:15:15. > :15:22.Phelps this summer p and the main base for the Chinese Olympic
:15:22. > :15:27.delegation. A package here, with top tickets to the athletics and
:15:27. > :15:31.dinner, cost �3,000 a person over the games. This summer was also an
:15:31. > :15:35.unforgettable one for many of the Polish cleaners working here. Just
:15:35. > :15:39.two month before the Opening Ceremony, the hotel outsourced its
:15:39. > :15:45.room cleaning contract, dozens of jobs were transferred across to a
:15:45. > :15:49.new company, Jani-King, one of the largest in the contract cleaning
:15:49. > :15:52.business. That transfer has caused serious anger, among many of the
:15:52. > :15:57.cleaners at the Hilton Waldorf. Newsnight has spoken to five people
:15:57. > :16:00.working there, and seen a letter signed by another 25. They say they
:16:00. > :16:04.have been left worried for their jobs and out of pocket. Some say
:16:04. > :16:09.they have been left with only a few hundred pounds to pay the bills
:16:09. > :16:16.each month. I was so happy that I was working for the Hilton contract,
:16:16. > :16:20.because I got good money, no problems, no nothing. Anetta
:16:20. > :16:24.followed her husband to the UK in 2007, she has spent more than two
:16:24. > :16:29.years at the hotel. Before that she was a primary school teacher near
:16:29. > :16:32.Warsaw. She says the problems started when the first wage slips
:16:32. > :16:35.arrived. First the agency changed the way cleaners are paid. Instead
:16:35. > :16:40.of getting wages at the end of the month, they suddenly had to wait up
:16:40. > :16:44.to seven weeks to get their full pay. This wasn't a one-off, it was
:16:44. > :16:52.happening every month, leaving some cleaners hundreds of pounds out of
:16:52. > :16:57.pocket. When I opened my payslip was really sur pryed, because I was
:16:57. > :17:01.expecting �1,400, and I received only �200, so I was asking, but I
:17:01. > :17:05.work, that was my hours, it was almost 200 hours on that, because
:17:05. > :17:10.it was the Olympic time. And that was his answer, you are not allowed
:17:10. > :17:15.the money now. You know, I have to pay my rent, it is not possible to
:17:15. > :17:20.manage with �200. Jani-King says it did offer some employees short-term
:17:20. > :17:24.loans to cover a gap in their wages. The workers, though, say this was
:17:24. > :17:27.just a temporary fix, and the next month they faced the same problem
:17:27. > :17:34.of the I was sitting in the office and I'm crying, because you know, I
:17:34. > :17:39.call them again and again and again. Ivana has been here six years, she
:17:39. > :17:44.sends the money here she earns back to her husband and two small
:17:44. > :17:48.children in pole land. We are fighting three month, and -- Poland.
:17:48. > :17:55.We are fighting three months and it is not fair, I want money for my
:17:55. > :17:58.job, I do a good job. The problems continue, payslips show cuts in
:17:58. > :18:04.hourly wages from one month to the next. Just before the Olympics, all
:18:04. > :18:07.the room cleaners were told to sign this confidential letter, under old
:18:08. > :18:12.Hilton management, they were expected to clean two rooms an hour,
:18:12. > :18:16.now that rate was increase today three. In threatening language, the
:18:16. > :18:22.letter said if the new targets were not met, disciplinary action could
:18:22. > :18:26.follow. That hotel is five-star hotel, 20 minutes to clean the room,
:18:26. > :18:32.never, no-one can do it. Just maybe you can make the bed, and clean the
:18:32. > :18:36.bathroom, a little bit. And that's The cleaners say staff were
:18:36. > :18:40.pressured to skip breaks and work overtime for no extra pay to meet
:18:40. > :18:45.the new targets. But, this is about more than a few missed payments. It
:18:45. > :18:51.is about a whole business model. Hotels are now routinely
:18:51. > :18:56.contracting out tasks, like room cleaning to outside agencies. Done
:18:56. > :18:59.correctly, companies in low-wage sectors say outsourcing can cut
:18:59. > :19:03.costs, bring in specialist staff, and in the end, increase the
:19:03. > :19:08.quality of the service. There are laws meant to protect working
:19:08. > :19:12.conditions when this happens. In simple terp, outsourcing should not
:19:12. > :19:17.be -- terms, outsourcing should not be used to change anything in the
:19:17. > :19:22.terms of the cleaners' contract, including the wages they are paid.
:19:22. > :19:26.This man represents clients from Wayne Rooney to Andy Coulson in the
:19:26. > :19:32.working sector. In the low pay sector it appears individual don't
:19:32. > :19:39.know their rights. In a case of foreign workers, there may be a
:19:39. > :19:42.problem with English. Other there may be an unwillingness to confront
:19:42. > :19:45.authority. In the coalition agreement, the Government said the
:19:45. > :19:51.labour market should be competitive but fair. The danger is, critics
:19:51. > :19:55.say, that aggressive outsourcing, in low-pay sector, like hotel
:19:55. > :20:00.cleaning, can just encourage contractors to drive down wages and
:20:00. > :20:06.working conditions. The majority of hotels in Crawley,
:20:06. > :20:12.you will find near enough every housekeeper is European. But, could
:20:12. > :20:18.outsource anything this way, also be pricing British work --
:20:18. > :20:23.outsourcing in this way, be pricing British workers out of markets. A
:20:23. > :20:30.veteran of hotel cleaning, she says she has seen wages and conditions
:20:30. > :20:36.deteriorate. It has changed. They bring in a load of,am I allowed to
:20:36. > :20:39.say, Bulgarian, Rumanian, who will work for that kind of money. They
:20:39. > :20:44.will work from morning to night. Some of them don't even go home.
:20:44. > :20:49.They say stay in the hotel. Stella was working until May last
:20:49. > :20:53.year, when her hotel outsourced its cleaning contract, again, to Jani-
:20:53. > :20:58.King. She was sacked. The firm says for misconduct, she says to make
:20:58. > :21:03.way for younger, cheaper, eastern European workers. In the House of
:21:03. > :21:07.Commons, last year, Stella's local MP stood up and used parliamentary
:21:07. > :21:11.privilege to link her dismissal, and that of a colleague, to their
:21:11. > :21:17.nationality. Mr Speak e recently I have been dealing with a case on
:21:17. > :21:19.behalf of two constituents who were dismissed from their job with a
:21:19. > :21:23.commercial cleaning firm called Jani-King, allegedly for being
:21:24. > :21:27.British. Can we have consideration for a debate on discrimination
:21:27. > :21:32.against British workers in this country. But Mr Smith's argument
:21:33. > :21:36.isn't that firms like Jani-King are raceist, more than the terms and
:21:36. > :21:42.conditions they now offer make the jobs attractive only to new migrant
:21:42. > :21:47.workers. You can see it is a pretty cynical wage model, that some
:21:47. > :21:54.companies are using. In that they not only are paying the lowest
:21:54. > :21:59.possible wage, and therefore, attracting people coming into the
:21:59. > :22:02.country often from economies where unemployment is even higher. But
:22:02. > :22:06.also what they are doing is they are turning over staff very quickly.
:22:06. > :22:10.So that they are constantly getting people at an entry level, again
:22:10. > :22:15.they can only pay the absolute minimum wage that they feel they
:22:15. > :22:19.can get away with. The answer, he says, is not more
:22:19. > :22:23.regulation. But better enforcement of the laws meant to protect low-
:22:23. > :22:28.paid workers like hotel cleaner. For Stella, though, the job hunt
:22:28. > :22:34.continues. I feel bitter, I feel bitter, because I have been treated
:22:34. > :22:38.badly by them. I have had it firsthand, my experience, what they
:22:38. > :22:43.are like, what they want to do. They do want to get British people
:22:43. > :22:48.out. And get more Bulgarians in. Because it is cheap labour. They
:22:48. > :22:50.don't argue. But, there are signs that's
:22:50. > :22:58.changing. Many of the eastern European workers, who arrived
:22:58. > :23:03.almost a decade ago, now speak the language and know their rights. The
:23:03. > :23:07.cleaners at the Waldorf, are certainly not afraid to confront
:23:07. > :23:11.authority. Earlier this month, though, Ivana
:23:11. > :23:14.turned up for work and was told to go straight back home, she had been
:23:14. > :23:19.dismissed. The other senior cleaning staff have been told they
:23:19. > :23:26.must now go through a selection process to keep their jobs. I feel
:23:26. > :23:30.they will sack me. Because I'm, all of us are expensive for them. So,
:23:30. > :23:36.they are going to just wait for that moment when they can sack us
:23:36. > :23:41.from the work. And we know that, one day that will come. We are just
:23:41. > :23:44.waiting for that. Many low-paid British workers were
:23:44. > :23:49.making exactly the same complaint when the UK opened its doors to
:23:49. > :23:58.Eastern Europe. Now it's these Polish workers who feel threatened,
:23:59. > :24:02.exploited, worried, and above all, vulnerable.
:24:02. > :24:06.In a statement, Jani-King has said it has taken all legal measures
:24:06. > :24:09.with the contract at the hotel. It claims all cleaners will be trained
:24:09. > :24:13.to work more efficiently, and denies any staff will automatically
:24:13. > :24:16.be made redundant. It has apologised for any inconvenience
:24:16. > :24:19.caused with regard to their salaries. Hilton said that
:24:19. > :24:23.outsourcing is one part of its business model. And all its
:24:23. > :24:27.suppliers must comply with existing laws and conditions of employment.
:24:27. > :24:34.It says Jani-King will now review staffing at the hotel, but, the
:24:34. > :24:38.agency remains a key supplier. In the second part of our series,
:24:38. > :24:43.Jim Reid investigates the loopholes employment agencies use to hire
:24:43. > :24:48.migrant workers from Romania and Bulgaria. Just a copy of the
:24:48. > :24:52.contract for my records. Can you bring records downstairs. That's
:24:52. > :24:56.not a contract. That is a provision of the service. But just to have it
:24:56. > :25:00.for my records. You can't have that one darling. You will be pleased to
:25:00. > :25:07.know, later in the programme, we are trying to go back to Madrid, on
:25:07. > :25:11.the developing situation there. You heart the start of a rub bet bullet
:25:11. > :25:13.fussilade in the middle of the interview. Earlier David Cameron
:25:14. > :25:18.finished speaking to the United Nations General Assembly in New
:25:18. > :25:22.York. He flayed the UN for the inaction over Syria, saying the
:25:22. > :25:27.blood of slaughtered children there was a stain on the UN's reputation.
:25:27. > :25:30.And during a spirited defence of the Arab Spring, he announced a new
:25:30. > :25:35.initiative in London to trace the millions of dollars Egypt's
:25:35. > :25:39.President, Hosni Mubarak, is said to have salted away here. While on
:25:39. > :25:44.the subject of stolen assets, we have a responsibility to help these
:25:44. > :25:47.countries get back the stolen assets that are rightly their's.
:25:48. > :25:51.Just as we have returned billions of dollars of assets to Libya. It
:25:51. > :25:55.is simply not good enough that the Egyptian people continue to be
:25:55. > :25:58.denied these assets, long after Mubarak has gone. And today I'm
:25:58. > :26:02.announcing a new British task force to work with the Egyptian
:26:03. > :26:07.Government, to gather evidence to trace assets, to work to change EU
:26:07. > :26:12.law, and to pursue the legal cases that will return this stolen money
:26:12. > :26:16.to the rightful owner, the Egyptian people. You have been investigating
:26:16. > :26:19.the story, what is the background to this? Immediately after the
:26:19. > :26:24.Egyptian revolution in February of last year, Britain promised to do
:26:24. > :26:30.all it could to try to trace the billions of dollars suspected to
:26:30. > :26:35.have been stolen by the old regime, and hidden abroad. But very little
:26:35. > :26:41.action followed, about �85 million worth of suspected asset was frozen
:26:41. > :26:46.in London. That was already 40 days after the revolution. And a BBC
:26:46. > :26:49.News night investigation, and BBC Arabic investigation a couple of
:26:49. > :26:53.weeks ago, found some really obvious assets that had apparently
:26:53. > :26:59.been completely overlooked by the UK authority. For example, a very
:26:59. > :27:04.substantial house, just off Knightsbridge, the main London gom
:27:04. > :27:09.of Gamal Mubarak, also a company very associated closely with him.
:27:09. > :27:13.This is what an expert in asset recovery had to tell you about that.
:27:13. > :27:16.There you are, you have an active business through which he was
:27:16. > :27:22.trading. You might have thought that the company would have been
:27:22. > :27:27.added to the list of entities, affected by the sanctions, that has
:27:27. > :27:33.happened. Why do we think the British Government has moved now?
:27:33. > :27:38.What sources have said is removing an irritant in anglo-Egyptian
:27:38. > :27:42.relations. There has been a meeting between David Cameron and Prime
:27:42. > :27:45.Minister Morsit has been an irritant for a long time. There was
:27:45. > :27:47.legal action launched against the UK back in the spring. It is hard
:27:47. > :27:52.to believe, as part of our investigation, the Foreign Office
:27:52. > :27:56.said to us they thought Britain was already doing all it could. It is
:27:56. > :28:00.quite hard to believe this apparent change of heart isn't part of the
:28:00. > :28:03.really big impact that the British investigation, our investigation,
:28:03. > :28:06.particularly the Arabic version, had in Egypt, I think it was really
:28:06. > :28:10.embarrassing. What is likely to happen, what is the task force,
:28:10. > :28:14.what will they do on the morning they start? Exactly, we still don't
:28:14. > :28:20.know. The Foreign Office say details are partly to be worked out.
:28:20. > :28:22.Really I think it is about some kind of co-ordination between all
:28:22. > :28:25.the different agencies that are dealing with this. We are talking
:28:25. > :28:29.about the police, the Treasury, the Home Office and the Foreign Office,
:28:29. > :28:33.it is the multipolicity of organisations, and lack of co-
:28:33. > :28:36.operation, that has been so frustrating. I think the problem is
:28:36. > :28:41.the proof will only come in the question of what further assets
:28:41. > :28:45.actually are frozen, so far Britain has set the legal barrier, the
:28:45. > :28:52.burdenen of proof, very high. We don't yet know whether that will
:28:52. > :28:55.change. Thank you very much. Today of the final day of the Lib
:28:55. > :29:01.Dem conference. Nick Clegg made a speech lasting 38 minutes, in wit
:29:01. > :29:08.three most used words were "country", "people", and for some
:29:08. > :29:11.reason, "half" as in half time or wait for the second half of the
:29:12. > :29:16.Government. Allegra Stratton had to be draged kicking and screaming
:29:16. > :29:26.away from this riveting experience, with half time analysis in a moment.
:29:26. > :29:26.
:29:26. > :29:29.First, the highlights. For 30 month Lib Dem foot soldiers have endured
:29:29. > :29:33.cruel elements, looking out from inside Government they have been
:29:33. > :29:37.pitched to the right and left, and unable to fix on the horizon.
:29:37. > :29:41.Although they can't see how, their loader today told them where he
:29:41. > :29:45.wants them to get. From the middle of this parliament and the middle
:29:45. > :29:49.of Government, by 2015's general election, Nick Clegg wants his
:29:49. > :29:53.party firmly in the middle of the voters' view. The trouble with this
:29:53. > :29:58.being in the middle thing, is illustrated by my very crude
:29:59. > :30:05.profiling. Apologies for doubtless offence about to be caused. He is a
:30:05. > :30:11.mate of Gordon Brown's on the left. She's on left and proud of it.
:30:11. > :30:16.I'm not sure but wouldn't be surprised. He's Clegg's PPS, he
:30:16. > :30:22.will say whatever is in the speech. We are wileing away time waiting
:30:23. > :30:26.for a speech so important, that Nick Clegg apologised for an error
:30:26. > :30:32.seven days ago, so people would concentrate on the speech and not
:30:32. > :30:37.mutter on it. He wants to drag them to place philosophically where they
:30:38. > :30:47.are not now electorally. We are an hour from when Nick Clegg tells
:30:48. > :30:48.
:30:48. > :30:53.them they want to re-think their image. This is Joe Grimmand, he was
:30:53. > :30:56.on the centre left. That is how most people see him. There is David
:30:57. > :31:00.Lloyd George, Nick Clegg would get some sucker from him, and that is
:31:00. > :31:06.who Clegg often quotes. Another one, Asquith, this is a help hadful
:31:06. > :31:12.phrase, "neither to the left nor to the right, but keep straight on".
:31:12. > :31:16.We found a Cleggite, what is going on? I take all sorts of abuse from
:31:16. > :31:19.friends and colleagues, because everybody is tellsing me they are -
:31:19. > :31:24.- telling me they are finished. I don't think they are. There is a
:31:24. > :31:27.problem, if you have suits in the north but saying you are a party of
:31:27. > :31:32.the centre and in coalition with the Government, you are handing all
:31:32. > :31:37.the seats in the north back to the Labour Party? When people Israelise
:31:37. > :31:45.what the liberal contribution to the economy has been, all the
:31:45. > :31:50.people reduced from paying tax, I think, the students are better off.
:31:50. > :31:56.He wants to shake his hand, others don't. There are constituents
:31:56. > :32:01.outside the south-east where Labour is strengthened. A dash for the
:32:01. > :32:07.centre ground has stopped that. A gamble that it mitochondrial not.
:32:07. > :32:11.The taxing wealth and unleashing income might help tackle the
:32:11. > :32:15.spectrum. This man doesn't quite accept the definition. You are
:32:15. > :32:19.centre right not centre left. are a liberal progressive party.
:32:19. > :32:25.better go, or I will end up on the stage.
:32:25. > :32:30.The Deputy Prime Minister, Nick Clegg.
:32:30. > :32:37.Conference, I tell you this, the choice between the party we were,
:32:37. > :32:40.and the party we are becoming is a false one. The past is gone and it
:32:40. > :32:45.isn't come back. If voter want a party of opposition, a stop the
:32:45. > :32:51.world I want to get off party, they have got plenty of options. But we
:32:51. > :32:57.are not one of them. APPLAUSE. Le
:32:57. > :33:01.There is a better, -- there is a better, more meaningful future
:33:01. > :33:05.waiting for you, not as a third party, but one of three parties of
:33:05. > :33:08.Government. He turned deficit reduction,
:33:08. > :33:14.opposition to which has driven Liberal Democrats into labour's
:33:14. > :33:19.arms, into an argument of social justice. So to those who ask,
:33:19. > :33:26.incredulously, what we, the Liberal Democrats, are doing cutting public
:33:26. > :33:32.spending, I simply say this, who suffers most when Governments go
:33:32. > :33:40.bust. It would be the poor, the old, the infirm, those with the least to
:33:40. > :33:44.fall back on. And caricatures for his opponents, both ace lunatic
:33:44. > :33:48.fringes. The -- both as lunatic fringes. The truth is only the
:33:48. > :33:51.Liberal Democrats can be trusted on the economy and relied upon to
:33:51. > :33:56.deliver a fairer society too. My experience, if you are being
:33:57. > :34:05.attacked by Liam Fox from one side, and Ed Balls on the other, you are
:34:05. > :34:10.in the right place, by the way. A speech placing him firmly in the
:34:10. > :34:14.liberal tradition, a proud intellectual tradition, the problem
:34:14. > :34:18.is turning into votes, enough votes in the right part of the country,
:34:18. > :34:21.votes that are right at the front of the coalition cuts. If the
:34:21. > :34:24.economy doesn't turned around, it is dark times ahead for the Lib
:34:24. > :34:26.Dems? The crucial part of going into Government was to sort out the
:34:26. > :34:31.economic mess. It is really important that we are able to show,
:34:31. > :34:35.as we will be able to in 2015, that we have turned the corner and got
:34:35. > :34:38.the economy growing again, and we have made a massive step in
:34:38. > :34:47.reducing the huge levels of borrowing that we inherited from
:34:47. > :34:52.labour last time round. The economy coming right, and then
:34:52. > :34:55.the next bit too, strategists think the way to realign politics will
:34:55. > :35:00.take a generation. Economic recovery will not be swift either.
:35:00. > :35:04.The problem for Lib Dem MPs is they don't have that long.
:35:04. > :35:08.What were they trying to do both there and throughout the week?
:35:09. > :35:13.have a really interesting argument, which we talked about on the
:35:13. > :35:16.programme bf. Wealth taxes rather than income -- before. Wealth tax
:35:16. > :35:19.rather than income taxes. It is fascinating philosophy and politics.
:35:19. > :35:23.They have this difficulty where the people who are their voters right
:35:23. > :35:28.now are turned off already. And to get them back, even though the
:35:28. > :35:31.argument might make sense to some voters on the left, they are
:35:31. > :35:34.already hurt and in anguish and won't come back. They are trying to
:35:34. > :35:38.make this argument which is they have green policies and education
:35:38. > :35:41.policies, and they have this income tax, wealth tax switch. But they
:35:41. > :35:46.have offended and hurt so many people it is impossible to see how
:35:46. > :35:49.their numbers will add up. For me it is a weird mismatch of
:35:49. > :35:53.interesting philosophy and policy. And then there is this terrible
:35:53. > :35:58.numbers for them. You have to give them credit for having stuff you
:35:58. > :36:03.can get your teeth into. Everyone is laughing, but, equally, it is
:36:03. > :36:09.just fiendish on the doorstep. it riveting for you as a
:36:09. > :36:14.correspondent? You know, we have some light relief, that no-one can
:36:14. > :36:21.explain. But "Liberal Democrats for Romney"! Was it riveting, party
:36:21. > :36:26.conferences are a dying animal, and this was an example of an animal
:36:26. > :36:30.twitching. Anything else? I have a present for you, it cost 35p at the
:36:31. > :36:40.start of the week by the end it was �5. I thot you could write another
:36:41. > :36:43.
:36:43. > :36:48.book about it. It is -- It is a Vince Cable, "I am a pleb" badge.
:36:48. > :36:57.The on going ridiculous row about Andrew Mitchell of there, and lots
:36:57. > :37:01.of correspondents leaving to go to London. Joining me now are Baroness
:37:01. > :37:05.Lara Morgan, Tony Blair's right hand in Downing Street, the
:37:05. > :37:11.journalist, Miranda Green, who used to advise the Liberal Democrats,
:37:11. > :37:15.and Sean Worthh, who until downwas special adviser to David Cameron.
:37:15. > :37:19.Mirand -- Until June was special adviser to David Cameron. Miranda,
:37:19. > :37:24.do you think it went well? thought he did well in the
:37:24. > :37:32.circumstances. It was said that they have they were overshadowed by
:37:32. > :37:37.the Mitchell plebgate affair. I thought this week was a circling of
:37:37. > :37:43.the wagon, the polls are desperate for Clegg and party. It was an
:37:43. > :37:47.inward looking week. The speeched today, some of the imagery was
:37:47. > :37:52.amazing, "we the Lib Dems are the burning building", we are engaged
:37:52. > :37:57.in national renewal and party renewal. From raised earth position,
:37:57. > :38:02.is basically what he was saying. I think it was a very serious speech
:38:02. > :38:08.about the predicament the party and the country is in. This theme of
:38:08. > :38:12.resilience being a vir due, I think that is quite a good mess -- virtue,
:38:12. > :38:21.I think this is a good message for him. Tough give him credit for
:38:21. > :38:27.still being standing. He looked as if he had made some head way. We
:38:27. > :38:31.had head bangers being described on the platform from coalition
:38:31. > :38:36.partners. Having the aphrodisiac effect on sacking workers. We can
:38:36. > :38:39.imagine how it is going down on the membership, on the leadership and
:38:39. > :38:46.the machine how will it play? you look at Clegg's speech, I
:38:46. > :38:49.talked to a he had lo of delegates at my first--- to a lot of
:38:49. > :38:54.delegates at my first ever conference. There was Tory bashing,
:38:54. > :39:00.and it was in good tumour, there was a joke about Boris and Dave, a
:39:00. > :39:05.few gags. I thought he gave a very workman-like performance, in term
:39:05. > :39:09.of the coalition partner, he can't be seen to be having a go at the
:39:09. > :39:14.partners in Government. It is smack in the middle of a fixed term
:39:14. > :39:17.parliament, effective low, it will just communicate fractious --
:39:17. > :39:21.effectively, it will communicate fractious divisions in a Government
:39:21. > :39:24.that isn't getting on with the tough job that he actually is
:39:24. > :39:28.talking about. There must absence, that Conservatives watching that
:39:28. > :39:33.live on rolling news -- a sense that Conservatives watching that
:39:33. > :39:37.live on rolling news, that we are feeling the pain and look at them,
:39:37. > :39:42.is there an element of Tories locking at them and saying, at
:39:42. > :39:47.least we're not the Lib Dems? thought Clegg did a speech that
:39:47. > :39:50.showed signs of real improvement for the liberals. He stops talking
:39:50. > :40:00.about weird stuff like the alternative vote and constitutional
:40:00. > :40:03.reform, and all these strange lrd issues. -- Lib Dem issues. He talks
:40:03. > :40:08.about growth, schools, jobs, he had a very tough message for Labour.
:40:08. > :40:12.That was the key thing for me. He clearly had to communicate
:40:12. > :40:17.differenciation from the Tories. Ownership of some key policy areas,
:40:17. > :40:21.and start moving on to issues that people care about. Ten out of ten
:40:21. > :40:26.for substance, delivery as I said not setting the world on fire.
:40:26. > :40:29.Sally Morgan, there is a huge sofa in Ed Miliband's office, is he
:40:29. > :40:34.tonight cowering behind it after watching the speech? I couldn't
:40:34. > :40:38.have thought so, it is indicative that you came to it so late tonight,
:40:38. > :40:41.and it didn't lead the news. That is a pretty big problem, I thought
:40:41. > :40:44.what was interesting about the speech is it was the Deputy Prime
:40:44. > :40:50.Minister speaking to the country. I think it was what he should have
:40:50. > :40:53.done. It was correct. He didn't tickle the tummies in the hall very
:40:53. > :40:55.much, which is what Vince Cable and others were doing this week. He was
:40:55. > :41:02.trying to talk to the country, but I don't think they are listening.
:41:02. > :41:06.That is the real problem. It is a risky strategy for Labour to go on
:41:06. > :41:10.hoping for two-and-a-half years that the country goes on not
:41:10. > :41:15.listening, and despising Clegg over the issue of the student fees and
:41:15. > :41:20.the turn around. It wouldn't take much for, the 10% lead Labour has
:41:20. > :41:28.got, to drop back and for them to turn up again. Are Labour aware of
:41:28. > :41:31.it? I think the Labour Party will be mad if they sit around and are
:41:31. > :41:34.complacent. I don't think they are complacent and I don't think think
:41:34. > :41:38.people are stupid. I can remember being involved with the Labour
:41:38. > :41:41.Party when we have had large leads before elections and not won
:41:41. > :41:45.general elections. People have long enough memories to realise you
:41:45. > :41:50.don't win elections by watching others fail. There is a very clear
:41:50. > :41:54.subtext to the whole speech as well. Which is let's differentiate
:41:54. > :42:00.ourselves from Tories in fairness and labour on the economy. There
:42:00. > :42:07.are nasty characters and we choose we can personify that. Fans of The
:42:07. > :42:11.Thick Of It, will identify these as The Twiners, how long can they get
:42:11. > :42:13.away with the inbetweeners strategy? It was very interesting
:42:13. > :42:17.also this announcement that Paddy Ashdown, my old boss, would come
:42:17. > :42:21.back and fight the next election. Or be in charge of fighting the
:42:21. > :42:25.next election. What does that tell us about where they think it is
:42:25. > :42:29.going to be fought? This is the point we made many times here,
:42:29. > :42:35.which is the Lib Dems can't go back to the territory they fought on
:42:35. > :42:38.before. They can't go back to the same old messages. But, pady is a
:42:38. > :42:42.very respected fighter, he will give the party half of the fight.
:42:42. > :42:45.They do need to think very, very hard about this position, they
:42:45. > :42:53.can't divorce themselves from their coalition partners going into the
:42:53. > :42:58.fight. On the other hand they need to look distinctive.
:42:58. > :43:04.Differenceation is one of the worst words I have heard it is worse than
:43:04. > :43:14.maths. They have to talk ahead in a way people will understand.
:43:14. > :43:20.For the Conservatives, how will this play. The fill love kal --
:43:20. > :43:25.philosophical distance, is this a new tone, is Clegg 2.0 what we are
:43:25. > :43:30.going to see for two years? If it is, it will benefit them. Two
:43:30. > :43:33.things struck me, one of the fact that they ignored the strange Lib
:43:33. > :43:37.Dem obsessions and they focused on stuff that really matters to people.
:43:37. > :43:42.The second was, as I said earlier, I didn't think the speech set the
:43:42. > :43:45.world on fire. But where it did get good was where he got passionate
:43:45. > :43:50.and angry. He is communicating that he is standing up on key issues,
:43:50. > :43:55.that will be their strategy for the longer term in the parliament. What
:43:55. > :44:00.was key to me, just coming back to the Labour position, is he really
:44:00. > :44:04.had a go at Labour on the economy. But very careful not to say
:44:04. > :44:09.Miliband, he attacked Balls, he has to keep the court open for the
:44:09. > :44:13.prospects. Is Balls quaking in his boots? I wouldn't say, it is part
:44:13. > :44:16.for Labour to start putting forward a stronger alternative next week.
:44:16. > :44:26.Plenty more where that came from in the party conference season. Right,
:44:26. > :45:01.
:45:01. > :45:06.Before we go our team in Madrid said after the police shot at the
:45:06. > :45:12.crowd with rubber bullets the crowd dispered. We play out with the
:45:12. > :45:17.voice of Andy William, who died today at the age of 84. Whose
:45:17. > :45:20.unmistakable sound once cauldron nald Regan to call him a national
:45:21. > :45:25.treasure sure. This is why they call it easy listening.
:45:25. > :45:31.# I need you baby # You want a lonely nationwide
:45:31. > :45:36.# I love you baby # Trust in me when I say
:45:36. > :45:40.# Oh pretty baby # Don't bring me down I pray
:45:40. > :45:45.# Oh pretty babe # Now that I found you
:45:45. > :45:55.# Oh pretty baby # Trust in me within I say
:45:55. > :46:08.
:46:08. > :46:10.Good evening, we have had some very disturbed weather. Severe flooding,
:46:10. > :46:14.nasty storms across England and Wales. Continued through the
:46:14. > :46:17.evening overnight as well. Still with us first thing across southern
:46:17. > :46:21.and eastern areas, local flooding in that. Thursday is looking like a
:46:21. > :46:25.dryer and brighter day. Morning mist and fog for the rush hour.
:46:25. > :46:28.Scattered showers in the afternoon. It is not all all together dryer
:46:28. > :46:32.picture, it is dryer than it has been. Nasty showers through the
:46:32. > :46:36.evening and overnight, but clearly away first thing in the morning.
:46:36. > :46:39.The mist and fog clears away. More sunshine and a scattering of
:46:39. > :46:43.showers. It looks dry compare with the south west and also across
:46:43. > :46:47.Wales with just a scattering of showers here and there. Fairly
:46:47. > :46:50.gentle breeze, but coming down from the North West, not a particularly
:46:51. > :46:53.warm direction. There are showers over the saturated ground of
:46:54. > :46:58.northern England. Not great news, and through the Midland flood
:46:58. > :47:02.warnings as well. A number in force. For Northern Ireland and the
:47:02. > :47:07.western Scotland, cloud overhead. The eastern side of Scotland seeing
:47:07. > :47:11.the best of a sunny weather. What about Friday, we will see a band of
:47:11. > :47:15.cloud and rain initial low, and sunshine and showers, a and brisk
:47:15. > :47:19.winds, gales later, they will blow for cloud in across the southern
:47:19. > :47:23.part of the country. Not as windy on Friday, but a few showers around.