25/10/2012

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:00:14. > :00:18.Tonight, reasons to be cheerful are three. Growth up, unemployment down,

:00:18. > :00:22.inflation down. But with 1400 British jobs lost at Ford, and no-

:00:22. > :00:28.one predicting a straight road to recovery, is the Government's

:00:28. > :00:33.austerity programme really working? From double-dip to Olympic blip,

:00:33. > :00:36.sources of long-term growth are very hard to find.

:00:36. > :00:41.We will debate the politics and explore whether the good economic

:00:41. > :00:44.news depends on where you live. We will hear from economists and

:00:44. > :00:48.business experts whether scare talk of a triple-dip recession could

:00:48. > :00:51.move from fantasy to fact. Also tonight, you turn up for a

:00:51. > :00:58.hospital appointment and find out they have lost your file, and it

:00:58. > :01:04.ends as more than just a clerical mix-up. I took the tablet involved,

:01:04. > :01:07.I regained consciousness, I was on the floor, my feet elevated,

:01:07. > :01:13.receiving an intravenous drip to revive my blood pressure. It did

:01:13. > :01:19.that much harm. As the long war in Afghanistan comes to close, there

:01:19. > :01:24.is more than a billion spent in aid, is the British Government about to

:01:25. > :01:32.abandon the Kabul Government, corrupt, and support local

:01:32. > :01:35.community groups. We will speak with our guest tonight.

:01:35. > :01:40.Good evening, for the Government today came the best news on the

:01:40. > :01:45.economy for a long time. The strongest quartly growth in five

:01:45. > :01:50.years. -- quarterly growth in five years, bringing an end to the

:01:50. > :01:55.longest double-dip recession since the 1940s, outpup rose a quarter

:01:55. > :01:59.per cent up from the previous quarter. Economy has been

:01:59. > :02:03.flatlining, which dampened any prospect that George Osborne, like

:02:03. > :02:06.his predecessor, would be singing in the bath to celebrate. Paul

:02:07. > :02:11.Mason is here with the good news and the bad and the ugly. Tell us

:02:11. > :02:17.the good news first.Le If there were dinners held and

:02:17. > :02:21.cocktail parties thrown, and the occasional Gucci handbag given away

:02:21. > :02:25.to secure the London Olympics, it was worth it. This was the Olympic

:02:25. > :02:29.effect, 1% growth in a quarter is very, very healthy, and would be

:02:29. > :02:33.the envy of any developed country. Bu however, it is not a quarter's

:02:33. > :02:37.growth or rate of change that economists worry about, it is the

:02:37. > :02:40.amount and size of the economy theself. This is the graph Mervyn

:02:40. > :02:44.King worries about, and George Osborne should. Here it is, the

:02:44. > :02:48.size of the UK economy, the amount of output over the last four years,

:02:48. > :02:54.of output over the last four years, and as it animates. We there it is.

:02:54. > :03:01.That is the problem, today's 1% surge in a quarter, that is the

:03:01. > :03:06.last bit there. Really we have a long way to go to recover where we

:03:06. > :03:09.were before the crash. This is real, because we know 200 jobs were

:03:09. > :03:13.created in the last three months. Even if they are, as some people

:03:13. > :03:20.say, part-time shop assistants, whatever, they are real jobs, and

:03:20. > :03:24.it is real growth. The problem is, can it be sustained? Can it? Is it

:03:24. > :03:29.sustainable? Look, there is evidence of a bit of a surge of,

:03:29. > :03:34.what we call, broad money. The money supply in the economy. This

:03:34. > :03:38.predates the summer of growth that we had. But economists, according

:03:38. > :03:41.to one theory, if you get a bit of a surge of money, over the next few

:03:41. > :03:44.months, it should surge into the economy in the form of growth. In

:03:44. > :03:48.other words, what that might be telling us, might be, is that

:03:48. > :03:52.quanative easing is working. If it's working we might not need any

:03:52. > :03:55.more of it. But, ultimately, the fate of the whole economy hangs on

:03:55. > :04:01.how we get out of the kind of recession we are in. The kind of

:04:01. > :04:04.recession we are in, spelled out by King only last week, is one where

:04:04. > :04:12.everything's depressed because of the amount of debt in, in the

:04:12. > :04:18.economy, in people's own lives, and until that is sorted, even with the

:04:18. > :04:23.Olympic, as we are about to see, were pretty spectacular, doesn't

:04:23. > :04:28.turn things round. The crisps you ate, the beer you drank, the gym

:04:28. > :04:32.you joined, the tickets you might have bought. Today's figures showed

:04:32. > :04:36.the Olympics did help Britain bounce back out of its double-dip

:04:36. > :04:40.recession. The Chancellor allowed himself to be mildly pleased.

:04:40. > :04:43.are plenty of risks out there, look at the data from the euro zone this

:04:43. > :04:47.week, that shows us there is still a difficult economic situation in

:04:47. > :04:51.the world. But, if we stick with what we are doing, getting the

:04:51. > :04:56.deficit down, creating jobs, fixing the deep-seated problems in the

:04:56. > :04:59.British economy, then I think you can see now that it is going to

:04:59. > :05:02.deliver the kind of underlying prosperity we want to see in this

:05:02. > :05:08.country. The breakdown of the big picture

:05:08. > :05:11.looks like this. A rebound in manufacturing, added 0.2% to GDP in

:05:11. > :05:16.the last quarter. The continued collapse of construction wiped that

:05:16. > :05:20.out. But the very strong growth of services, including Government

:05:20. > :05:24.services, boosted output by 1%. And in case you are interested, Olympic

:05:24. > :05:26.ticket sales accounted for a fifth ticket sales accounted for a fifth

:05:26. > :05:28.of that. It is very encouraging that the

:05:28. > :05:33.economy has pulled out of the recession at last, and the strength

:05:33. > :05:35.which with which it has refounded as well. The concern is this isn't

:05:35. > :05:39.necessarily a sign that the economy has momentum and will improve from

:05:39. > :05:43.here on. In fact, there are a number of indicators that suggest

:05:43. > :05:47.the economy is losing momentum, that this was just a temporary

:05:47. > :05:52.bounce, due to the bank holiday effect, and the Olympics, and as we

:05:52. > :05:56.go towards the end of the year, there is signs that growth,

:05:56. > :06:00.momentum, will slow. If the euro crisis is ultimately responsible

:06:00. > :06:05.for depressing growth here, the only certainty is, the Olympics are

:06:05. > :06:09.over, but the troubles of Europe are not.

:06:09. > :06:12.Obviously has been for the past couple of years, the political

:06:12. > :06:15.battleground, and will be through to 2015. What are the challenges

:06:15. > :06:19.for the political parties on this? We are about to hear two

:06:19. > :06:25.politicians, I doubt we will hear both of them shout, hurray, green

:06:25. > :06:29.shoots, it is all solved. In fact, the challenges are for policy

:06:29. > :06:33.makers, the policy being made, primarily, by the Bank of England,

:06:33. > :06:39.the Bank of England's quanative easing policy, as I said earlier,

:06:39. > :06:42.what may have ultimately given this some omph and some sustainability.

:06:42. > :06:46.The question being discussed in the rarified atmosphere of Central

:06:46. > :06:51.Banking, is do we need more. Do we need more quanative easing, do we

:06:52. > :06:55.print more money, do we then tear up some of those IOUs that the Bank

:06:55. > :06:59.of England is buying? In other words, to write off bits of

:06:59. > :07:03.Britain's debt. That is a serious debate going on. I suspect, and

:07:03. > :07:07.this number was so big today, and so surprisingly big, that might be

:07:07. > :07:12.on the backburner, that might have decided that bit of the debate.

:07:12. > :07:16.Then you have the question which again the Chancellor can't do much

:07:16. > :07:19.about, it is his own statistician, the Office for Budget

:07:19. > :07:23.Responsibility, is the Chancellor going to miss his deficit target.

:07:23. > :07:27.Is he actually going to miss the targets he set himself? Maybe this

:07:27. > :07:32.1% doesn't answer that one way or another. The implications are we

:07:32. > :07:36.will have to wait, the next big predictable event is the Autumn

:07:36. > :07:40.Statement by is the 5th of December? If it is judged that

:07:40. > :07:45.growth is not strong enough long- term, and this is a blip, for

:07:45. > :07:50.Britain to meet the targets it has set itself, then the choice will be

:07:50. > :07:55.more austerity, quite hard to do, given the state of the coalition.

:07:55. > :08:01.Or some tax cuts paid for by changes in Government policy, or a

:08:01. > :08:05.slowdown in austerity. There is even talk of a secret stash of �25

:08:05. > :08:08.billion, sitting in the Bank of England, that is a by-product of QE.

:08:08. > :08:11.There is all kinds of things that we are about to be discussing in

:08:11. > :08:15.the next two months. Big strategic things the Chancellor can't do.

:08:15. > :08:19.What he can't do and hasn't been able to do through policy alone is

:08:19. > :08:25.to manage growth. That growth was magiced into existence, by the very

:08:25. > :08:28.act of winning the Olympics. Chris Leslie is on Labour's

:08:28. > :08:31.Treasury team, and Michael Fallon is the Business Minister, and not

:08:31. > :08:34.often on the programme talking about good news. The good news will

:08:34. > :08:37.keep on coming, says the Prime Minister, will it? It is

:08:37. > :08:40.encouraging news, and what is happening now is all the signs seem

:08:40. > :08:43.to be pointing in the right direction. We have unemployment

:08:43. > :08:46.falling and inflation half what it was a year a these good figures

:08:46. > :08:51.today, better than the City and forecasters expected, Britain

:08:51. > :08:55.coming out of recession. There is a long way ahead. But the good news

:08:55. > :08:59.will keep on coming? It is a long road ahead, but the signs of

:08:59. > :09:03.recovery are there now and pointing in the same direction. Do you not

:09:03. > :09:07.worry that you will sound complacent when people look at the

:09:07. > :09:09.last year and in 2011 where we were in the economy? There is no

:09:09. > :09:14.complacency, that is why we are continuing to rebalance the economy,

:09:14. > :09:17.and reform in the way we get more house building done, reforming

:09:17. > :09:21.planning laws, guarantees for infrastructure, and looking at job

:09:21. > :09:23.creation, getting more finance through to small businesses. Look

:09:23. > :09:26.at private sector job creation over the last year. Since this

:09:26. > :09:33.Government came into office, we have created over a million private

:09:33. > :09:37.sector jobs. There are more people working now than in 1971. Given

:09:37. > :09:41.that caution, could you say you will rule out a triple-dip

:09:41. > :09:44.recession? Nobody can rule out the road ahead. You are not ruling that

:09:44. > :09:49.out? You can't be sure what lies ahead. More problems in the

:09:49. > :09:53.eurozone, Germany looks as if it is going backwards. What we can say,

:09:53. > :09:56.is although it is a long way ahead, these are encouraging signs,

:09:56. > :10:00.pointing in the same direction and Britain is now recovering. The

:10:00. > :10:03.confidence theself, from today's figures, I think, will be extremely

:10:03. > :10:09.important. Chris Leslie, growth up, unemployment down, inflation down,

:10:09. > :10:12.that's three bullets in the Labour Party idea that we need a Plan B,

:10:12. > :10:16.isn't there? This is positive news, but it is about time we had some

:10:16. > :10:23.good news, quite frankly, with the state of the economy. We have had

:10:23. > :10:29.two very long years of flatlining, and with the greatest respect to

:10:29. > :10:32.Michael. He he talks about it as if we shouldn't worry about it. The

:10:32. > :10:37.point is, that is a permanent hit to our productive xasty. It has

:10:37. > :10:40.meant living standards have fallen. We have seen the resilience of the

:10:40. > :10:46.economy severely hit. When you think what b what is coming.

:10:46. > :10:49.there anything you can say tonight without talking down the economy?

:10:49. > :10:53.You are. I'm not, it is perfectly reasonable to look at what is

:10:54. > :10:56.around the corner. If you look at the 80% of cuts still to be felt

:10:56. > :11:01.from the Chancellor's Spending Review. If you look at the tax

:11:01. > :11:06.rises around the corner, the living standards, the eurozone, all of

:11:06. > :11:11.those raise the key question, are we more resilient now because of

:11:11. > :11:17.Government policy, or are we just hoping this is going to be the

:11:17. > :11:21.trend for the future. I hope it is, but we need to do far more than

:11:21. > :11:25.take this complacent attitude. wish you hadn't said all that.

:11:25. > :11:27.Nobody is complacent. My job as Business Minister is to visit

:11:27. > :11:31.businesses, up and down the countries businesses are fed up

:11:31. > :11:33.with politicians like you talking down the economy. We need more

:11:33. > :11:39.confidence, we need more confidence now, and this growth figure today

:11:39. > :11:43.will give us a bit more confidence. We need action, an approach to

:11:43. > :11:46.stimulating the economy, and focusing on growth, instead of

:11:46. > :11:51.sitting back, crossing your fingers and hoping something will turn up.

:11:51. > :11:56.Because the strength of the economy is not good enough. We have, not

:11:56. > :11:59.only have we got a flat economy. There you go again, talking it down.

:11:59. > :12:07.I hope it will get better. We have to make better progress. You made

:12:07. > :12:10.that point. But the OBR said austerity reduced real GDP in

:12:10. > :12:13.2011/2012 by 1.4%, the argument is this Government has made things

:12:13. > :12:17.harder for people unnecessarily and cut back on growth T would have

:12:17. > :12:21.been better if you had not done that? We had to get the deficit

:12:21. > :12:25.under control, we were spending �160 billion more than coming in

:12:25. > :12:29.taxes, that was a worse deficit than Greece. We had to get that

:12:29. > :12:33.sorted out. We are slowly doing. That we have dealt with a quarter.

:12:33. > :12:37.At the expense of growth? We have dealt with a quarter of it all

:12:37. > :12:41.already. Statement we have been trying to rebalance the economy. --

:12:41. > :12:46.tailt we have been trying to rebalance the economy. -- at the

:12:46. > :12:48.same time we have been trying to rebalance the economy, we have too

:12:48. > :12:52.much expenditure, we are rebalancing the economy,

:12:52. > :12:56.encouraging the economy. You will hit your fiscal targets, we will

:12:56. > :12:59.hear in the Autumn Statement? will see from the independent OBR

:12:59. > :13:02.where we are with the targets, it is not up to us, we have an

:13:02. > :13:05.independent body that will do that. There is a big point here.

:13:05. > :13:08.don't know if you have hit the fiscal targets? We will see from

:13:08. > :13:12.the OBR if we have hit them. Times have been tough over the last

:13:12. > :13:17.couple of years, a pay freeze ayes cross the public sector, we have

:13:17. > :13:23.tried to help with the council tax freeze and so on. The signs are we

:13:23. > :13:25.are coming out of recession. talk as if the last few years don't

:13:26. > :13:29.matter. There are careers affected and businesses gone under, what

:13:29. > :13:32.will you do to make up the ground four our lost competitiveness. As

:13:32. > :13:36.we have been standing still, Germany have been accelerating and

:13:36. > :13:43.the United States. They have not been accelerating. They have grown

:13:43. > :13:46.at 3.3% in the last few years, hour growth is 0.6% over a two-year

:13:46. > :13:51.period. While we have been standing still, the strength of our economy

:13:51. > :13:55.relative to those other economies has fallen back. We need to regain

:13:55. > :14:00.ground. I need a strategy Government about regaining the

:14:00. > :14:03.ground we have lost? Strategy has been there all along, it is to

:14:03. > :14:07.encourage private sector employment, while you are obsessed with public

:14:07. > :14:09.spending. It is to back the new technologies and industries,

:14:09. > :14:13.industries outside London and the south-east. To ensure that new jobs

:14:13. > :14:16.are being created. We are doing that all the time. The Ford

:14:16. > :14:21.announcement today was very disappointing for those who make

:14:21. > :14:24.Transit vans in Southampton, but they committed to the new low-

:14:24. > :14:27.carbon diesel engine made in Dagenham, a huge commitment by Ford.

:14:27. > :14:31.Other companies are coming in behind them, and vesting in Britain.

:14:31. > :14:36.We can't start talking the economy down. On that point, would you like

:14:36. > :14:45.to take this opportunity to apologise for leaving us with a

:14:45. > :14:48.structural deficit as Ed Balls, the shadow Chancellor pointed out?

:14:48. > :14:50.Nobody knew the economic crisis would be. You have been very weak

:14:50. > :14:54.on this? The Conservatives said they would match the spending plans

:14:54. > :14:57.of the last Government. Would you like to apologise for getting all

:14:57. > :15:02.that wrong? All sorts of lessons should be learned. Let me tell you

:15:02. > :15:06.one thing, the economy was recovering in 2010, we were growing.

:15:06. > :15:08.You had a worse deficit than Greece. George Osborne pulled that rug of

:15:08. > :15:14.confidence from underneath the economy, we have been treading

:15:14. > :15:18.water for two years. That has hit our strength as an economy,

:15:18. > :15:21.worldwide. There is a serious cost. Where do you think the million new

:15:21. > :15:25.private sector jobs have come from. You are satisfied with the plan and

:15:25. > :15:28.the way things are. Tell that to people's living standards have been

:15:28. > :15:31.severely affected, tell the people whose careers have been hurt by the

:15:31. > :15:35.policies you have put in play, and, in fact, we have so many more

:15:35. > :15:39.problems around the corner. There you go again you are talking it

:15:39. > :15:44.down. You don't think the tax rises are a problem or the public service

:15:44. > :15:47.cuts, 80% not. It is keeping him going, it is talking the economy

:15:47. > :15:51.down again. I'm being realistic. You are not, you are talking us

:15:51. > :15:55.down. On that point of realisim or talking it down, we will leave it

:15:55. > :15:58.there. Thank you very much. Today's growth figures are an

:15:58. > :16:02.estimate based on the country as a whole, that means the good news has

:16:02. > :16:07.not been evenly spread around. Some areas of the country may find

:16:07. > :16:11.today's talk of recovery a strange notion. We have a sense of what the

:16:11. > :16:14.economists' figures mean for the real economy. We have been to

:16:14. > :16:18.Lincoln today. Amid the atrocious weather, which

:16:18. > :16:21.held back the rest of the UK economy, Lincolnshire also got to

:16:21. > :16:26.taste the Olympic spirit, as the torch made its way through the city.

:16:26. > :16:29.But it will take an awful lot more than Olympic ticket sales to raise

:16:29. > :16:33.average incomes here in Lincolnshire, which currently lie

:16:34. > :16:39.in the bottom five regions in the country. Average salaries in

:16:39. > :16:42.Lincolnshire are around �14,500, much less than half those in

:16:42. > :16:45.central London. Many work in minimum wage jobs, like

:16:45. > :16:49.construction. But house completions have halved in four years, so it is

:16:49. > :16:54.tough for builders here to make any money. I think it has been a

:16:54. > :16:58.struggle for a number of years, to be honest. The levels of activity

:16:58. > :17:01.that we have got at the moment are only really being sustained by

:17:01. > :17:06.Government initiatives that are helping out. And the problem with

:17:06. > :17:09.the Government initiatives is bureaucracy and red tape has

:17:09. > :17:15.delayed those initiatives? They take a long time to come to from

:17:15. > :17:18.you i, the New Buy Scheme we applied for six months ago, we are

:17:18. > :17:23.frustrated we can't put that in place. The other minimum wage

:17:23. > :17:27.sector is agriculture. Farming now accounts for 6% of Lincolnshire's

:17:27. > :17:33.income, down from 12%. This year's awful wet weather didn't help

:17:33. > :17:37.either. Even the warmer third quarter was deemed too dark by many

:17:37. > :17:43.farmers. And the third minimum wage sector, mass manufacturing, is also

:17:43. > :17:47.depressing rather than adding to the local economy. The Kimberly

:17:47. > :17:51.Clarke nappy-making factory said it would close yesterday, a week after

:17:51. > :17:56.Seven Seas said they would be shutting their Humberside plant.

:17:56. > :17:59.But if Lincolnshire can get more place like this, they would be --

:17:59. > :18:05.places like this, they would be very pleased. The smell is medieval,

:18:05. > :18:10.but the plant brand new. It automatically screens, separates

:18:11. > :18:15.and pulps 800,000 bottles an hour. It is the largest and most

:18:15. > :18:18.profitable recycling plant in the world H Coca-Cola not been their

:18:18. > :18:21.junior partners had might never have been built, due to the banks

:18:21. > :18:27.being unwilling to lend. This is the finished product, this is the

:18:27. > :18:32.material that came in the front door as a waste product, gone

:18:32. > :18:37.through all our processes and now suitable for manufacturing into new

:18:37. > :18:42.plastic bottles. Would you regard yourself as optimistic?S Absolutely,

:18:42. > :18:47.I'm a glass -- absolutely, I'm glass half full person, the future

:18:47. > :18:50.is not just bright for this future, the sector, and the green sector as

:18:50. > :18:53.a whole. Oil will run out at some point. People should be concerned

:18:53. > :18:56.about the amount of people on the planet, the consumption going on.

:18:56. > :19:02.We have to reduce waste and reinvent waste, that is exactly

:19:02. > :19:12.what we are doing here. It ticks so many boxes, creates jobs, adds

:19:12. > :19:12.

:19:12. > :19:17.value, it is all good news. Eco Plastics not alone. See minutes

:19:17. > :19:21.has a turbine engine plant in Lincoln, and it is expanding.

:19:21. > :19:25.Lincolnshire is no microcosm of the UK economy, it is the least

:19:25. > :19:30.ethically diversified and the most rural. It is going through similar

:19:30. > :19:33.pangs of rebalancing away from low tech and into high-tech. If average

:19:33. > :19:36.incomes continue to stay low, it is hard to see future generations

:19:36. > :19:42.staying in the county of their birth.

:19:42. > :19:50.With us to assess all of this are WPP advertising group chief

:19:50. > :19:56.executive, Sir Martin Sorrell, the director of the think-tank Marquez

:19:56. > :20:00.and Ann Pettifor from the office of -- Macroeconomics, and Ann Pettifor

:20:00. > :20:06.from the Office of Budget Responsibility. A few months ago we

:20:06. > :20:10.were all doom and gloom, and here we are cheery on 1% growth, I don't

:20:10. > :20:15.take either too seriously what I learned from the Bank of England is

:20:15. > :20:19.the first estimates of GDP are not where things turn out to be. It

:20:19. > :20:22.could go down or up. It doesn't change the picture we have for some

:20:22. > :20:27.time, which is fundamentally this economy is growing a little bit,

:20:27. > :20:30.but not fast enough. The figures are uneven because of the Olympics,

:20:30. > :20:34.the Jubilee, lots of special factors. Lots of special factor,

:20:34. > :20:38.are you cheered up, obviously it is better than the alternatives?

:20:38. > :20:43.Absolutely, it is good news. But there are three big threats facing

:20:43. > :20:48.us, still, the first is the vast overhang of debt on the private

:20:48. > :20:51.banking sector, and the fact that hasn't been handled, restructured

:20:51. > :20:56.or mgtd. Secondly, synchronised austerity around the world. The

:20:56. > :20:59.United States, the whole of Europe, and increasingly Japan, and China

:20:59. > :21:04.unwilling to come to the rescue of the rich western countries again.

:21:04. > :21:08.For me, thirdly, this links to what Paul was saying, is the failure of

:21:08. > :21:12.the monetary authorities to co- ordinate and to work with the

:21:12. > :21:16.fiscal authorities to manage, if you like, this injection of money

:21:16. > :21:21.into the economy, so that it is used for productive purposes. It is

:21:21. > :21:25.that failure of those two big institutions and authorities to

:21:25. > :21:28.come together, that means money is being printed and sprayed around,

:21:28. > :21:32.and goodness knows where it is going, and those who need money,

:21:32. > :21:38.the productive end of the economy are not getting it. And the

:21:38. > :21:42.Government is standing back saying nothing to do with them.

:21:42. > :21:45.You talked about austerity being a straitjacket as far as growth is

:21:45. > :21:51.concerned. Did you take Michael Fallon's point we had to do it, and

:21:51. > :21:54.the Government had to do it, and broadly, the strategy is working?

:21:54. > :21:58.In the short-term I agree what the Government has done. It hasn't

:21:58. > :22:02.actually lowered spending, it has reduced the rate of increase of

:22:02. > :22:06.spending, it is up from �700 billion, projected to be �750

:22:07. > :22:10.billion in four years time. They reduced the rate of increase, lower

:22:10. > :22:13.interest rates, improved the credit rating and et cetera. We announced

:22:13. > :22:18.our results, they are the lowest rate of growth across the world we

:22:18. > :22:25.have seen he across the world for two years, it was poor quarter for

:22:25. > :22:31.us. The UK was wrong, up about 4-5% in the quarter, this year 3-4%,

:22:31. > :22:35.last year we have up 8%, added 2,000 jobs. Our position in the UK

:22:35. > :22:45.has been strong. There are four things people are worried about in

:22:45. > :22:51.business, September was a pivitol pwhont month, we -- month, we saw a

:22:51. > :22:55.decrease in business. Brazil, Russia and all the growth economies,

:22:55. > :23:00.the BRICs, increasing tensions in the Middle East, Syria, Lebanon,

:23:00. > :23:06.the Israelis attacking, Iranian and nuclear institutions or even visa

:23:06. > :23:12.versa, last but not least, probably the elephant in the room, is what's

:23:12. > :23:16.going to happen in the US after the election. What l Romney or a re-

:23:16. > :23:21.elected Obama -- will Romney or a re-elected Obama, I think Obama has

:23:21. > :23:25.the advantage, it will be close, there will be a House of

:23:25. > :23:30.Representatives controlled by the Republicans, and the Democrats

:23:30. > :23:33.controlling the Senate, we will be in that gridlock. Maybe some

:23:33. > :23:38.modified plan, along the lines we have seen before, which President

:23:38. > :23:46.Obama wanted to bring in, and then ignore the report that he wanted to

:23:46. > :23:51.bring in a Simpson Bowles like after the election. The preliminary

:23:51. > :23:55.Ications are that we are not masters of our own destiny, that

:23:55. > :23:59.George Osborne has levers he can pull, but the factors are beyond

:23:59. > :24:02.his control or any politician's control in this country?

:24:02. > :24:06.absolutely agree with you. The big threats from the UK economy often

:24:06. > :24:10.come from abroad. One of the things that went wrong in the decade up to

:24:10. > :24:14.the financial crisis, is a risk that came up from abroad, problems

:24:14. > :24:18.in America, that affected us here, we have had big oil price rises,

:24:18. > :24:22.that is what has held the economy back. It wasn't just austerity. It

:24:22. > :24:25.is absolutely right. I want to take issue with something Anne said, you

:24:25. > :24:29.commented on the fact, I feel sensitive about quanative easing,

:24:29. > :24:34.since I was there when we started it off. It was perfectly good

:24:34. > :24:37.evidence that it was very helpful to companies in the initial stages,

:24:37. > :24:40.it helped them borrow more cheaply. It is unfair to say of the

:24:40. > :24:43.Government they are not doing anything today, the new Funding For

:24:43. > :24:47.Lending scheme is a good scheme that should help get credit going

:24:47. > :24:51.in the economy. The truth is, against the head winds they face,

:24:51. > :24:55.there is a limit to what can be done. Because you can't suddenly

:24:55. > :25:02.say to businesses, with the background of all the things that

:25:02. > :25:08.Martin has set out, that everything will be Rosie and let's leave it.

:25:08. > :25:10.just think that the banks' lending numbers that came out recently are

:25:10. > :25:14.really bizarre. They show firms in the economy are lending to banks,

:25:14. > :25:18.and banks are not lending to the real economy. There is negative

:25:19. > :25:22.lending. That is bizarre. It is almost unheard of in our history.

:25:22. > :25:26.To some extent that is true. I say this, of course the Chancellor can

:25:26. > :25:30.do something about the overhang of private debt, but by the utter

:25:30. > :25:34.focus on public debt, and ignoring the vast overhang of private debt,

:25:34. > :25:39.the Chancellor is avoiding dealing with what is a real big structural

:25:39. > :25:43.threat to the economy. You have to give the economy some credit, just

:25:43. > :25:47.this week the supply chain financing move was an attempt to

:25:47. > :25:53.try to provide an alternative to bank financing. What we saw,

:25:53. > :25:57.interestingly, we went to the ECB to see Mario Draghi the week before

:25:57. > :26:01.last, 23 of the companies out of 25 said they were having a tough

:26:01. > :26:04.September. What surprised me was the ECB was surprised by that. What

:26:04. > :26:08.was described as the September *Cliff. I thought that the

:26:08. > :26:13.quanative easing we saw from Draghi and Bernard, and the quanative

:26:13. > :26:18.easing we saw from -- Bernanke and the Chinese, signalled they saw

:26:18. > :26:23.what was happening, and I hoped they had seen it before business

:26:23. > :26:26.saw it. Lending contracted today businesses in the eurozone in

:26:26. > :26:32.September, which explains the challenges you face. Businesses are

:26:32. > :26:36.sitting on �2 trillion -- $2 trillion of net capital. They are

:26:36. > :26:40.afraid of investing that, firstly, because of austerity, and secondly,

:26:40. > :26:44.because customers are not walking through the door. The point Michael

:26:44. > :26:48.Fallon made, was figures like this will boost confidence and release

:26:48. > :26:50.some cash? I'm not sure that is really true. Partly because, we

:26:50. > :26:55.have all been talking about the international factor, the worries

:26:55. > :26:59.about what will happen in the US, post election, the fact that the US

:26:59. > :27:03.is far from resolved, the fact that China seems to be slowing down.

:27:03. > :27:08.Everybody knows the big spending cuts, in a sense, are still to come

:27:08. > :27:11.in the UK. The fiscal tightening will worsen next year, against that

:27:11. > :27:16.background companies may invest a bit more. One day in the recovery

:27:16. > :27:21.we will surprise and the recoverly will emerge. I would be surprised

:27:21. > :27:25.if today's data is the move on to that summit upwards. If the

:27:25. > :27:29.Chancellor does miss his targets, Autumn Statement could result in,

:27:29. > :27:34.presumably, tax rises, further spending cut, more austerity, one

:27:34. > :27:37.way or another, or him saying fiscal targets don't matter? He's

:27:37. > :27:40.certainly not going to say they don't matter. He might say, and

:27:40. > :27:43.personally I think this would be a reasonable thing to say, that

:27:44. > :27:49.various things happen, particularly the eurozone crisis, since they

:27:49. > :27:52.came into office, and he will take a little bit longer, that would

:27:52. > :27:59.seem perfectly sensible. There was this lost decade and we wouldn't

:27:59. > :28:03.see a return until 2018. reduced to predict a double-dip

:28:03. > :28:07.recession, I will give you the opportunity toe predict a triple-

:28:07. > :28:12.dip recession? No, we are bouncing along the bottom, it is corrugated

:28:12. > :28:16.and it is painful. There is a painful analogy, but we will be

:28:16. > :28:20.bumping along the bottom, in western Europe, including the UK,

:28:20. > :28:25.less so UK and Germany, they are bookends with France, Italy and

:28:25. > :28:29.Spain, sandwiched inbetween in more difficulty. Anne, triple-dip?

:28:29. > :28:32.think there will be, because we precisely have not dealt with the

:28:32. > :28:39.banking crisis, and precisely because of synchronised austerity,

:28:39. > :28:42.I'm with the IMF, very scared about the synchronised austerity, and

:28:42. > :28:46.with the Governor of the Bank of England, who said yesterday, unless

:28:46. > :28:49.the private banking sector was prepared to take losses, we will

:28:49. > :28:53.never be able to address the crisis, because we have the overhang of

:28:53. > :28:58.debt which is the real drag on the real economy. I kind of agree with

:28:58. > :29:02.that. I'm not sure we have had a double-dip recession, but whether

:29:02. > :29:06.or not growth goes up or down, we have an extended period in front of

:29:06. > :29:09.us of sluggish growth, where we have to slowly get to grips with

:29:09. > :29:14.these problems. It is not going to be easy and there is not much

:29:14. > :29:17.Governments can do about it. Corrugated bottoms all round! It is

:29:17. > :29:21.a tale sadly for many of us, you turn up for the hospital

:29:21. > :29:24.appointment, and the records are not there and the test results are

:29:24. > :29:30.lost. Now medical bodies, backed by the Government, hope to avoid, that

:29:30. > :29:33.by giving you, the patient, access to your own medical note. They call

:29:33. > :29:36.it giving patients control. Some fear it is a means of shifting

:29:36. > :29:44.responsibility for the failings of the health service, on to the

:29:44. > :29:50.patients themselves. The first year has revealed what we

:29:50. > :29:57.all expected, a vast amount of silent good work, a great deal of

:29:58. > :30:02.relief, and a great deal of gratitude. Nye Bevan's devotion to

:30:02. > :30:10.establishing the National Health Service was inspirational, Don

:30:10. > :30:13.Atwell was one of the multitudes he inspired. His direct influence

:30:13. > :30:16.inspired me to become a trainee administration manager in the

:30:16. > :30:21.National Health Service. That was at 16 years of age. You were

:30:21. > :30:26.working with medical records from the beginning? Booking outpatient

:30:26. > :30:30.appointments, meeting the patients, and checking them in. 60 years on

:30:30. > :30:40.Don's talent for keeping records is a skill that is helping his very

:30:40. > :30:46.

:30:46. > :30:50.survival. Every week three million people use the NHS, the notes

:30:50. > :30:54.relating to their treatment are stored in depots many niels away,

:30:54. > :30:59.on many, many sheets of paper. This is a typical medical records

:30:59. > :31:03.library. There are scores like this, all over the country. This is in

:31:03. > :31:08.Birmingham, where there are 1.4 million patients' medical records

:31:08. > :31:11.being kept. They go back decades. But the system is cumbersome,

:31:12. > :31:17.complicated, and it is collapsing under the weight of so much vital

:31:17. > :31:21.information stored on paper. It is just not working.

:31:21. > :31:26.In my experience, notes are never where you want them to be. If you

:31:26. > :31:31.want them in cardiology, they are in orthopaedics, or the kidney team,

:31:31. > :31:36.et cetera. Patients with multiple problems, under many departments,

:31:36. > :31:40.may have their notes all over the hospital. Maybe two, three or four

:31:40. > :31:43.files in different places. It is causing real problems for patients,

:31:43. > :31:47.is it? It causes terrible problems for patients. You can imagine

:31:47. > :31:53.coming to clinic with a complex medical problem, and seeing a

:31:53. > :31:58.doctor who has got one, thin, folder with a blank sheet of paper

:31:58. > :32:02.saying "temporary notes, can't find notes". For 25 years Don has had a

:32:02. > :32:06.chronic heart condition, these days he minutes and logs every hospital

:32:06. > :32:09.appointment and test results for himself. He has learned, from

:32:09. > :32:12.experience, when he goes for treatment, and he has been

:32:12. > :32:16.everywhere, too often his medical records won't turn up. From his

:32:16. > :32:20.local hospital in Chester, he has been to London, Liverpool,

:32:20. > :32:26.Cambridge, Cheshire, Bristol, Manchester, back and forth, again

:32:26. > :32:32.and again. The health service should have

:32:32. > :32:37.built up a large fail on him, but if they did, we will never know.

:32:37. > :32:41.arrived at the hospital and greeted with the comment, I'm sorry we have

:32:41. > :32:45.bad news, you can't make this up, but we have lost your records.

:32:45. > :32:51.your records? Lost your records. What sort of records? 25 years of

:32:51. > :32:57.clinical records have got lost. As Don will tell you, when the

:32:57. > :33:02.records aren't there, there can be trouble. I'm in the cardiac ward

:33:02. > :33:11.and a consultant says to me, I want you to take this tablet. I said I

:33:11. > :33:14.can't tell take that, it -- I can't take that, it will have an adverse

:33:14. > :33:22.reaction. He said he wouldn't give me pain medication if I didn't take

:33:22. > :33:29.it. So I took it. He regained consciousness, on the floor, feet

:33:29. > :33:34.up, and receiving an intravenous drip to relieve my blood pressure.

:33:34. > :33:37.To avoid such catastrophes, University College Hospital

:33:37. > :33:43.Birmingham has been one of the first hospitals to transfer all

:33:43. > :33:46.records on toe confusion. It means confusion over drug doses has been

:33:46. > :33:50.dramatically reduced. Are you saying it makes a difference to

:33:50. > :33:55.patients' mortality on computer rather than paper? We have just

:33:55. > :33:59.published something in a scientific journal that demonstrates a more

:33:59. > :34:03.than 16% reduction in mortality emergencies, which results in the

:34:03. > :34:06.misdosage of drugs, give patients the drugs they are described and

:34:06. > :34:10.fewer die. We have 100 patients a year fewer dying in this

:34:10. > :34:13.organisation than we did three years ago. In Birmingham they say

:34:13. > :34:18.computerisation has helped. They are going further, trying to give

:34:18. > :34:21.patients access to their records on-line. This woman, who has

:34:21. > :34:26.rheumatoid arthritis, is one of the first to benefit. What you can get

:34:26. > :34:30.on the system now is they will show a little graph over time, my iron

:34:30. > :34:35.levels being a perfect example, started dropping off around

:34:35. > :34:40.November last year. It wasn't quite so obvious until you could see it

:34:40. > :34:46.in graph format, there it was. Plain as day. Do you feel better

:34:46. > :34:56.informed? I do. I have more of a basis for asking questions. But he

:34:56. > :35:01.willen works in the NHS as an information -- Elln works in the

:35:01. > :35:05.NHS, and has been aptitude for statistics. Patients are given

:35:05. > :35:08.freer access to their own medical records. It is an idea increasingly

:35:09. > :35:13.popular with medical bodies, like The Royal College of Physicians.

:35:13. > :35:16.Others argue in the long-term, it will simply mean doctors shuffling

:35:16. > :35:21.their responsibility, on to those least able to cope, their patients,

:35:22. > :35:25.the sick. The Government has said, by getting

:35:25. > :35:29.access to their notes, patients will have control over their

:35:29. > :35:34.treatment. It is right in line with Government thinking. And leading

:35:34. > :35:41.doctors' groups are also keen. most, I think, it is very welcome.

:35:41. > :35:47.They want to move in this direction. But it is because they want

:35:47. > :35:52.patients to have the opportunity to manage their own disorder, to make

:35:52. > :35:54.decisions. It is opportunity but is it responsibility? It carries

:35:54. > :36:00.responsibility. So the patient has responsibility rather than the

:36:00. > :36:04.physician? Not rather than, as well as. Duncan Diamond, a consultant

:36:04. > :36:07.for 40 years, says patients should be informed, but warns full access

:36:07. > :36:13.to their records will create further problems. I struggle to see

:36:13. > :36:17.how that will put the patient in control. A lot of the medical

:36:17. > :36:22.records will use terminology and numbers that nobody outside the

:36:22. > :36:25.medical profession is familiar with. That seems to me to introduce yet

:36:25. > :36:29.another potential gremlin into a difficult system. What about the

:36:29. > :36:32.notion that the patients could at least be the backstop, at least

:36:32. > :36:38.they would have control over their own? How do they co-ordinate it.

:36:38. > :36:41.They can come in and say hello doctor X, and I saw doctor. A and B,

:36:41. > :36:45.here are the records that your organisation is unable to find, I

:36:45. > :36:48.have got them. It is still a terrible indictment of the system,

:36:48. > :36:56.that relies upon someone who is ill and vulnerable, and maybe not at

:36:56. > :37:01.their best, worried, anxious, with anxious, worried relative to tro

:37:01. > :37:07.dues an add minutes -- relatives, to produce an administrative task

:37:08. > :37:11.that hospitals should do. Many think patients will need a

:37:11. > :37:14.degree of sophistication. What about those patients who aren't

:37:14. > :37:19.able? Those patients won't pick up the challenge and will continue to

:37:19. > :37:23.feel they want to be managed on a rather one-sided basis. What will

:37:23. > :37:28.happen to them? We will continue to do it that way, for those patients

:37:28. > :37:33.who want to engage much more in shared decision-making, shared

:37:33. > :37:39.management, we are right up for it and we want to see that. Some, like

:37:39. > :37:46.Don, see this as blind stumbling towards a two-teir health service w

:37:46. > :37:50.patients in the know, like him, OK, but the rest left floundering..

:37:50. > :37:54.Because I have argued and chased, but you can't expect the ordinary

:37:54. > :37:59.person to do that. It is not feasible. And ever more removed, he

:37:59. > :38:06.fears, from the dreams he still nurtures for the NHS.

:38:06. > :38:12.Britain has spent more than billion pounds in aid to Afghanistan. But a

:38:12. > :38:15.report by MPs raised the sposability that it may have been

:38:15. > :38:24.better -- possibility that it may have been better to give less to

:38:24. > :38:28.the Government and more to the local groups. The litmus test on

:38:28. > :38:32.whether British and US troops have succeeded is whether the lives of

:38:32. > :38:39.women have been improved for the better.

:38:39. > :38:49.My guests are with me. Laura Jane Patient of the British

:38:49. > :38:50.

:38:50. > :38:53.Are the people of Afghanistan significantly better off now than a

:38:53. > :38:57.few years ago? They are better off, but there is a long way to go on

:38:57. > :39:02.things like women's rights. I think of the project on improving women's

:39:02. > :39:06.rights in Afghanistan as maybe 10- 20% of the way achieved since 200.

:39:06. > :39:11.There is a huge way to go, which is why the continued support of the

:39:11. > :39:16.international community, after 2014, is so crucial. But the question is,

:39:16. > :39:21.where should that support be directed? Do you think that after

:39:21. > :39:25.2014, those advances, modest though they may be, are going to be

:39:25. > :39:29.sustainable, or Afghanistan will just go back to the way it was?

:39:29. > :39:32.think there is a real danger of the progress that's been made turning

:39:32. > :39:38.around and going back and in the wrong direction. I think in terms

:39:38. > :39:41.of what the best way is to prevent that, what the best way is to

:39:41. > :39:45.deliver services, it varies from sector to sector and region to

:39:45. > :39:49.region, across the country. What donors need to do, they need to

:39:49. > :39:53.look hard at what is going to be the most effective way of

:39:53. > :39:58.delivering services to the people who need them. Sir William, the

:39:58. > :40:01.argument, according to the argument appearing to be made by MPs today,

:40:01. > :40:07.is the Afghan Government is fundamentally pretty useless and

:40:07. > :40:11.pretty corrupt, we all know that. Perhaps more money and more effort

:40:11. > :40:14.should be spent on other people, NGOs and so on, avoiding the

:40:14. > :40:19.Government where possible. What do you make of that argument? I think

:40:19. > :40:25.it is a forked choice. You have to do both. The reality is, if you

:40:25. > :40:28.only invest in NGOs, and there is a capacity problem here, not many

:40:28. > :40:33.NGOs can effectively do what we want them to do, those who are

:40:33. > :40:37.effective we are supporting, I say "we", I'm no longer responsible for

:40:37. > :40:42.this. The Government is definitely supporting. Unless you try to help

:40:42. > :40:46.the Government. The structure of the state in Afghanistan and to

:40:46. > :40:49.improve it, whatever you do through an NGO network will be short lived.

:40:49. > :40:52.Isn't part of the problem that the British and American Government,

:40:52. > :40:56.because of justifications for the war, in keeping troops and losing

:40:56. > :40:59.lives in the war, have had to be a bit softer on the Kabul Government

:40:59. > :41:02.in public, than they were in private, and you know some of the

:41:02. > :41:07.terrible difficulty with that Government, it is not really

:41:07. > :41:11.functioning very well is it? would all love the Kabul Government

:41:11. > :41:16.to be more effective and less corrupt. But it is a country which

:41:16. > :41:20.has had a Government which for 30 years has been in internal conflict.

:41:20. > :41:25.So overnight it won't be reformed. I disagree with the premises that

:41:25. > :41:30.the lit tus test will be the situation of women after don litmus

:41:30. > :41:34.test will be the situation of women over ten years. The reason we went

:41:34. > :41:41.in was to free Afghanistan from a terrorist organisation. The litmus

:41:41. > :41:44.test will be leaving a functioning state that has the prospect of

:41:44. > :41:50.succeeding. We have to address women's issues. There are five

:41:50. > :41:57.million kids in school, 40% of them are girls. Education for girls is a

:41:57. > :42:02.fundamental building block for the future. What do you make of that

:42:02. > :42:06.argument, that women are not the reason why we went into Afghanistan

:42:06. > :42:11.and not the reason why billions were poured into the country?

:42:11. > :42:14.don't agree, there was a lot of rhetoric about the evils of the

:42:14. > :42:17.Taliban and the horrible state of women, it was used very stragically

:42:18. > :42:21.as way to justify the war. I feel like a lot of people, including

:42:21. > :42:24.people like Tony Blair, and Cherie Blair, made promises to Afghan

:42:24. > :42:28.women at the time of the invasion, and this is the moment where we

:42:28. > :42:32.really see whether those promises will be kept or not. Do you see the

:42:33. > :42:36.point that you can, of course, fund NGO, but you can't stuff them full

:42:36. > :42:40.of money. And without a functions state, not much they will do will

:42:40. > :42:45.last. There is there has to be a functioning state left behind in

:42:45. > :42:47.Afghanistan, or the whole project will crumble? I think it is, of

:42:48. > :42:52.course, important to have a functioning state. Is it possible

:42:52. > :42:57.for the UK to create a functioning state in Afghanistan. I don't think

:42:57. > :43:00.it is within the UK's power. The state may be functioning or not, it

:43:00. > :43:03.may continue to function or not. There are a lot of unknowns ahead.

:43:03. > :43:08.But this report that came out today does a really good job of

:43:08. > :43:11.illustrating some of the ways in which NGOs can deliver services on

:43:12. > :43:17.the ground, in areas that the Government just can't achieve that.

:43:17. > :43:21.So I don't see any reason to be sceptical about funding NGOs, and I

:43:21. > :43:25.don't see funding NGOs as undermining the role of the

:43:25. > :43:31.Government. We see services delivered through NGOs in many

:43:31. > :43:33.countries. The Government has a role in regulating those NGOs,

:43:33. > :43:39.licensing them, providing quality assurance. That doesn't undermine

:43:39. > :43:46.or go around the Government. William, do you worry that when

:43:46. > :43:49.British people see the news tonight, and two more British soldiers named

:43:49. > :43:55.victims of the fighting there. And they will look on that money that

:43:55. > :43:58.has been spent, and they will look with some concern to the future and

:43:58. > :44:02.what happens after 2014 a lot of people thinking it is a waste?

:44:02. > :44:08.understand it, I don't think it will have been a waste. I think at

:44:08. > :44:12.the end of 2014 which the time the troops withdraw. It is not end of

:44:12. > :44:16.our time in Afghanistan, it is the combat engagment. We will continue

:44:16. > :44:19.to work on things, building the state, making sure they can collect

:44:19. > :44:23.taxes. I think it is false choice. I'm not arguing we shouldn't

:44:23. > :44:27.support NGOs and only the state. We are actually doing both. And I

:44:27. > :44:30.think that's the important thing to remember. That at the same time you

:44:30. > :44:34.are trying to support women's groups, empower civil society, and

:44:34. > :44:38.do what you can, you are also, at the same time, trying to make sure