25/07/2014 Newsnight


25/07/2014

News stories with Emily Maitlis. Including can Ed Miliband get past his image problem, George Osborne on the economy, Gaza and Google buy Twitch.


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Transcript


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Miliband. Well, look, you know and I know I'm not from central casting.

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You can find people who are more square jawed, who look less like

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Wallis. The Labour leader lays bare his image problem and admits he's

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awkward on camera. Will the public agree with him. The slowest recovery

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for 100 years or the day they declare the economy booming. Are you

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better off than you were six years ago. We talk to the Chancellor,

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George Osborne. I'm the first to say today is not the day where we say

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job done, it is the day we resolve to do more, so yes, people feel

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prosperity. We have our Newsnight proms in the studio.

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Good evening, telling people you look like a cartoon character was

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always going to be gamble. Reminding people of awkward photo moments can

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go both ways too. What Ed Miliband did today was brave, confronting his

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critics face on, he admitted PR was not battle he often won. He said he

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hoped people looked for more than chisel good looks from a Prime

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Minister, the public have learned to like Labour's policy but will they

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love Ed, will voters come away refreshed by his honesty, or hear a

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man who hasn't convinced him he's a leader.

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Plenty of people have said it before, Ed Miliband doesn't always

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look good in a photo. He can come across a bit awkward, a bit, well,

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strange. The strange thing today was not that someone was saying this

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again, but that person was none other than Ed Miliband himself. This

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was billed as an important speech launching Labour's summer campaign,

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Ed Miliband looked pretty uncomfortable as he waited to go on.

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This was afterall a bold move to focus on his failings in an attempt

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to neutralise them. I'm not from central casting, you can find people

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who are more square-jawed. More chiselled, who look less like

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Wallace! And I even believe, I even believe that you could probably find

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people who look better eating a bacon sandwich! If you want the

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politician from central casting it's just not me. It's the other guy.

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This was, of course a dig at David Cameron, Labour has long sought to

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cast him as the slick insubstantial PR guy. But in the process Ed

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Miliband is guarnteeing that every newspaper, bulletin and blog will

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show endless unflattering photos of him portrayed at Wallace, or going

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head-to-head with bacon sandwich and losing. Or any number of shots in

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which he doesn't look like everyone's idea of a world's

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statesman in waiting. Leaders with low personal ratings are caught in a

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Catch 22 situation, they can either pretend they don't exist and get on

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with it, but that doesn't work. Because it becomes a permanent

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theme. Or they try to address it. And in trying to address it today I

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think Ed Miliband did it quite effectively by framing the debate

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about leadership between seriousness, him, and the guy who is

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good at photo opportunities but is quite hypocritical in his values,

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Cameron. Mr Miliband clearly believes the rehashing of all these

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odd-looking pictures, here is another one, is a price worth

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paying, if, as he told me in answer to a question after the speech he

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can change the way we think about politics and leadership. You know

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David the honest feeling I have about this is thank goodness, let's

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have this debate, it is not just about me, frankly, this has been a

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long time coming, and if we don't have this debate now we will have to

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have it at some point. Is politics really in touch with what people

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want from our politics. Other politicians have tried to neutralise

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image problems too by acknowledging them. Iain Duncan Smith knew he

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couldn't compete with the volume generated by Tony Blair, instead he

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tried to cast himself as something different. Do not underestimate the

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determination of a quiet man. Gordon Brown feared comparisons with

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Mr Blair and David Cameron, his response, not flash, just Gordon,

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and incidentally not successful. Will it work for Ed Miliband? It

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will appeal to some people. But the bigger problems is that most people

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have already decided, they have decided some time ago. You have been

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in leader of the opposition for four or five years, they are not just

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suddenly going to say, he has told me to look at him differently, now I

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will. Of the The problem was put by Ronald Regan succinctly, if you are

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explaining, you are losing. No more photo opportunities like this one,

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we shall see. Time is not on Ed Miliband's side, just a few short

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months to convince voters to change their assessment of him and what a

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Prime Minister should look like. Joining us now is Lucy Powell a

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Labour shadow minister who ran Ed Miliband's 2010 leadership campaign.

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And Phil Collins of the Times, Tony Blair's former speech writer. As

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David was saying it is a license for every broadcaster to run 100 bad

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photos of Ed Miliband, do you think it will change anything Phil? I

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doubt there are many people who haven't made up their mind about Ed

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Miliband. I also think that it is never true that anyone who has an

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image problem doesn't have a real problem underneath it I think the

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idea that you can separate an image problem from an actual problem is an

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illusion. The image is a convinced form of reality. What the image is

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telling you is something genuine about the way people think. People

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are not idiots, they don't fall for an image that is entirely false. So

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when you get things like the bacon sandwich, it is not that anyone

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thinks eating bacon sandwiches a test of political virility, they are

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thinking this is a visual metaphor for significant thought already,

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which is I don't regard this man as prime ministerial? Why? Not because

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of the bacon sandwich, but the test that the Labour Party has to pass on

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running the nation, in particular the economy. There was the Regan

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phrase, if you are explaining you are losing, which in essence is what

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Phil said, if you have to come on to a stage and say you are not very

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good as a PR man, you have lost them already? The bulk of the speech was

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talking about the positive things he brings to the table I think they are

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the things that fundamentally are the things that people want to see

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in a Prime Minister. You know what is it that we're actually asking for

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from a Prime Minister? Do we want somebody who gets up every morning

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thinking what can I do today to help Labour win the election and to

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change the country or do we want somebody who will get up in the

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morning and worry what they will look like in a contrived photo

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opportunity situation that day? So I think what Ed offers, which is a big

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vision, which is good policies about really fundamentally changing this

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country so people who work two jobs don't have to go down to a foodbank

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every day to get their meals. Or are we worried about how we eat a bacon

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sandwich, which is ridiculous. You ran Ed Miliband's campaign, this was

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what four years ago now, we are coming up to an election in May, did

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you realise, did you ever spy that this might be a problem. That he is

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now admitting, we're putting it out in the open, did you see that? This

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is not different from what we have always known about Ed and what he

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has said about himself. He is by his own admission that is a guy that is

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more interested in policy, principle and conviction. When you are taking

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on Phil's point there, that is what the public actually say about Ed,

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they think he is a man of principle and man of conviction. They think he

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is a man who has good policies and the right ideas. What about

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authenticity, do they believe in him. Why does he become Labour

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leader and then feel the urge to get married the next month? I don't

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think it is true, Lucy, I think that nobody who supported Ed Miliband

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would have thought that four years on he would have to make this

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speech. If you remember at the time the thing about his leadership bid,

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he was someone who could connect directly with the people. That is

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turned out not to be true. I don't disagree what you said about the

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substantive questions, the question is whether he can be the messenger

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for the messages. I think it is clear that he clearly cannot. I

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disagree, there are two reasons why I backed Ed Miliband to be leader

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the Labour Party and so many other people did, firstly, I think he

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understood better than any of the other contenders at the time about

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the fundamental change we needed to see in our economy and politics in

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this country which, I think other people thought we could just have

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one more go, one more heave of the same with a new cast. When you look

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at the policies and the poll, the policies do well, the leader does

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not. Don't you feel you backed the wrong horse? I I absolutely do not,

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I'm incredibly proud of what Ed has done over the last four years, I

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know I will make extremely good Prime Minister. The issues he's

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talking about are the issues that I get on the doorstep, they are the

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issues people are interested in. Honestly are we really going to

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decide who is the Prime Minister of this country on the basis of whether

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you stand awkwardly when you are at a nursery or whether you are eating

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a bacon sandwich. That is the question that is on tonight? Nobody

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is thinking of it like that. It is unfortunate to say the least that he

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made this speech on the day which the economy recovered to the size it

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has since the 2008 crash. What the visual representations of his

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weakness tell us is people don't think Labour can be trusted with the

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economy. There are two weaknesses the Labour Party have had since Ed

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became leader, one is the question of leadership and the second

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economic competence. They are totally linked, this speech was an

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attempt to separate the two, as if you can have leadership over there,

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as if it is leadership not about anything in particular, it is

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leadership about the economy. Labour is miles behind on the economy.

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Until he does a second speech which is a me cull a on the economy, there

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is no way this can have an impact. He's trying to separate it, did you

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ever write Tony Blair a speech that put weaknesses on the table that

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said, here you are. Yes, you do it all the time. I completely

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understand the imperative behind the speech, I don't think it was a bad

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speech in that sense, it was the right thing to do. What were the

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weaknesses you laid bare for Tony Blair? There were loads of them,

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they were ages ago and often economic. That is the one that is

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what we are talking about tonight. Are you saying that a good speech

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means you get away with it and people don't talk about it? A good

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speech always confronts the weakness. It always cites the

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opposing case. Like what? And puts it very strongly. Labour, you go

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back to the beginning of Blair's time, Labour were considered to be

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extremely weak on the economy, between them Blair and Brown

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entirely neutralised that objection. On crime Labour did the same thing.

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At the moment Labour is extremely weak on the economy of economic

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competence, and you cannot have a speech about leadership which,

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doesn't go straight to economic competence. This speech tried to

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separate those two things. I don't think it did. And Ed Balls were was

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the cabinet, Ed Balls was making mass plastacine figures at a school?

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The fundamental debate in this country is about the economy, who is

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sharing and benefitting in the proceeds of growth in the figure

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West see today, is it a few at the top who are doing very nicely out of

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this recovery, or is it ordinary people like I represent. It is not

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ordinary people I represent, who have two incomes coming into the

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household and can't afford to buy a school uniform for their kids. Or

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who have a job and it is not a route out of poverty. Ed Miliband is

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addressing these big issues, and I think that is something we want to

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see in a Prime Minister. Not someone who is worried getting up in the

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morning, and worrying about how they can contriumph a situation to make

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them -- -- contrive a situation. Ronald Regan brought up the question

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of how much better off are people when they wake up. The Chancellor's

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figures say the economy is back to where it was in two OK 008, some

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would say better. But there are stagnating wages and an on going

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struggle about the deficit. How would you answer the Regan question

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and how solid are the economics underneath. We interviewed the

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Chancellor in Newcastle. GDP, the overall size of the economy

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grew by zero. 8% in the most recent quarter, it is up three. 1% in the

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last year, and yesterday the IMF forecast that this year the UK would

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grow faster than any other advanced economy. The big news is that the

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economy is finally returned to its prerecession peak. But the sector

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level is a different story. Services passed the peak in 2013, but

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construction and production are well below six years ago. While the

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nation's income is back to its previous size, that is not yet the

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case for individual incomes. That is simply because the money is spread

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around a much larger population than it was six years ago. And compared

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to the periods immediately after the 1980s and 1990s' recession, this

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recovery has been historically slow. Why has it taken our economy so long

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to return to where it was in 2008? Thanks to the hard work of the

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British people we have reached a major milestone in our long-term

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economic plan, but I'm the first to say that the job is isn't done. That

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a great recession has had a huge impact on the United Kingdom, and

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let us resolve not to repeat the mistakes of the past but go on

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working to plan that is delivering greater economic security for

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people, that is delivering a brighter future for all. If we look

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at the public sector finance figures which came out earlier this week, we

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see income tax receipts were up by less than 3% in the last year. But

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stamp duty receipts were up more than ho %, 40 -- 40%, does that tell

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us about the nature of the recovery? Jobs are created all over the

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country. In the north-east of England we had the fastest rate of

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job creation than any part of the country. 5,000 jobs, that is

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economic security for families. Of -- 65,000 jobs. That is economic

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security for families. The economy will grow and we can take a

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realistic assessment of what the country can afford and the deficit

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comes down. At the heart of the economic plan is restoring

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confidence in the UK, creating jobs and growing our economy, but of

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course there is much more to do. That fact that income tax is growing

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so slowly, stamp duty associated with the housing market is growing

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so quickly, it tells us something, it tells us that people's income

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growth has been weak, but the housing market is up 20% in London,

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10% nationwide, is this the kind of recovery we wanted? What I'm

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passionate about is people having economic security, people who didn't

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have jobs having jobs. That is what the recovery is delivering. But

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Britain has got to earn its way in the future. We have to export more,

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we have to invest more. We have to make sure that the business like

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where I was yesterday in Stockton, that business, a small manufacturing

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business is able to sell its wares all over the world. That is what I'm

:16:13.:16:17.

working on. That is the long-term economic plan. As you said lots of

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people in work, record numbers in employment, that is very, very good

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news, but you know the downside has been productivity, output per hour,

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how productive people have is weak since 2008, that is a big

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medium-term challenge when you talk about the long-term plan. What are

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you going to do about productivity? I agree with you, productivity is a

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long-term plan, I would rather have the productivity challenge than the

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long-term unemployment like in the past. In the end the country can

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only be productive if we are improving skills and education, and

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we are delivering that with reforms. If at the same time the economic

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infrastructure of the country is being improved, cities like here in

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Newcastle should be part of a northern powerhouse where we bring

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real transport connections for the future here. So these are all the

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things we can do to improve our productivity. But for me this is

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further evidence of why we have to go on working through the plan.

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Things like productivity, things like the imbalance in our economy,

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things like the fact that our education system continues to need

:17:26.:17:28.

to improve. These are all future challenges. Looks at the IMF

:17:29.:17:32.

forecast yesterday, excellent news for the upgrades for the UK, but in

:17:33.:17:36.

general global growth was revised down by the IMF, and big downward

:17:37.:17:42.

revision, a lot of challenges in the world economy, Russia, Ukraine,

:17:43.:17:47.

southern Europe, could this blow us off course? I thought the IMF

:17:48.:17:52.

forecasts were revealing, because it said Britain was growing faster than

:17:53.:17:55.

any other major western economy. That is due to the long-term plan we

:17:56.:17:59.

are pursuing. But also, as you point out, in the rest of the world,

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unfortunately, the economy is not as strong as we would hope. On the

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continent of Europe, in the eurozone it is weak. That is a challenge for

:18:10.:18:12.

the UK. We are an open and global economy. What it says do me is we

:18:13.:18:16.

need to redouble our links with the Chinas, the Indias of this world, so

:18:17.:18:21.

that we export more to the faster-growing parts of our economy.

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In the world. That is what I'm determined to do, I was in India a

:18:27.:18:29.

few weeks ago. That is how you deal with the challenge of a slower of

:18:30.:18:36.

growing Europe. You said this week that the economic should be bearing

:18:37.:18:42.

economic pain by imposing sanctions on Russia, how much pain should he

:18:43.:18:46.

be prepared to bear? The situation in the Ukraine is troubling not just

:18:47.:18:50.

for the people of Ukraine but the whole international community and

:18:51.:18:53.

the UK. There is an economic cost from sanctions, I won't pretend

:18:54.:18:57.

otherwise. You have to consider the economic cost of allowing a

:18:58.:18:59.

situation where international borders are ignored. Where

:19:00.:19:03.

commercial airlines and innocent people are shot out of the sky. That

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is a much greater economic risk for the UK. We will act with our

:19:08.:19:11.

European partners and American partners to impose sanctions where

:19:12.:19:14.

they are necessary, to make sure that Russia complies with the norms

:19:15.:19:20.

of international law. At this point in the Gaza crisis

:19:21.:19:25.

even a 12-hour cease-fire has to be hard fought. As we came on air a

:19:26.:19:30.

senior Israeli had told the BBC they were considering one day's truce

:19:31.:19:35.

starting tomorrow, Hamas has ly agreed, we are reading that in the

:19:36.:19:39.

last few minutes. John Kerry is pushing for seven days, an ambition

:19:40.:19:44.

that seems elusive given the events of the last 18 days, on the day of

:19:45.:19:50.

rage the death toll continued to rise, more in Gaza and the West

:19:51.:19:55.

Bank. As Ramadan draws to a close, France will have a meeting to seek

:19:56.:20:01.

peace. Turkey may hold the role that Egypt once held as mediators. John

:20:02.:20:06.

Kerry said he still hoped for a seven-day humanitarian truce for

:20:07.:20:12.

next week's Eid festival, but there was terminology to work through.

:20:13.:20:17.

More than 800 Palestinians, mostly civilians and 36 Israelis have died

:20:18.:20:22.

since the start of the conflict 18 days ago.

:20:23.:20:25.

Palestinian leaders called for day of rage, in protest at the death of

:20:26.:20:31.

civilians. Fighting continued throughout the day in Gaza and in

:20:32.:20:36.

the West Bank. Hamas is yet to respond to the proposed cease-fire,

:20:37.:20:39.

but its leaders have already said the group won't agree to a deal

:20:40.:20:43.

without an end to Israel's blockade. In a statement tonight Israel's

:20:44.:20:46.

Defence Minister said the country may soon broaden its ground

:20:47.:20:51.

operation there. The efforts to broker a lasting cease-fire have

:20:52.:20:54.

been complicated by the recent breakdown of the national unity

:20:55.:21:01.

Government of Fatah and Hamas. Fatah's commission for international

:21:02.:21:04.

relations join us from Ramallah. There is a small window for

:21:05.:21:08.

optimisim, but do you look at Hamas and its position of strength and

:21:09.:21:12.

think that their tactics appear to be working better? Let me state I'm

:21:13.:21:22.

relieved for the 12 hours n our situation that would mean saving the

:21:23.:21:27.

lives of tens and hundreds, primarily children. The UN

:21:28.:21:32.

statistics today showed every hour we lose a Palestinian child because

:21:33.:21:36.

of the Israeli bombardment and the guided missiles, so in these 12

:21:37.:21:41.

hours we would have saved 12 Palestinian children. As for the

:21:42.:21:45.

long-term prospects for this, let me also state three crucial facts right

:21:46.:21:48.

from the beginning. First this is not Israel's war against Hamas. This

:21:49.:21:51.

is really Israel's war against the Palestinian people. It did not start

:21:52.:21:58.

in Gaza but in the West Bank, and after that incident which still has

:21:59.:22:03.

so many question marks next to it, the disappearance of the three

:22:04.:22:08.

settlers. The second fact, this is not about really a truce here or a

:22:09.:22:12.

truce there. Israel started and imposed this war on us in our

:22:13.:22:17.

entirety, and lastly this is not about rockets it is about

:22:18.:22:19.

occupation, it is about the denial of basic rights. And therefore to

:22:20.:22:23.

put things into perspective, not to be lost in the details is important

:22:24.:22:26.

for the discussion, please go ahead. Absolutely, I just want to look at

:22:27.:22:30.

the role that Hamas is playing, they seem to be completely dominating

:22:31.:22:33.

negotiations at the moment, and I wonder whether you think you are

:22:34.:22:38.

moving towards the Hamas line now? No, I don't think the calculation is

:22:39.:22:44.

such. This is not a rivalry between Fatah and Hamas, both Fatah and

:22:45.:22:47.

Hamas are targeted, the Israeli missiles that come from the most

:22:48.:22:52.

sophisticated army and the most sophisticated air force does not

:22:53.:22:55.

really distinguish between this Hamas family or that Hamas or Fatah

:22:56.:22:59.

family. They wipe out entire families and some of them or even

:23:00.:23:04.

most of them are civilians non-Hamas and non-Fatah, some of them are

:23:05.:23:09.

Fatah, all of us on the occupied terrorists realise this is

:23:10.:23:12.

Netenyahu's onslaught on us, first it was Netenyahu's coup d'etat

:23:13.:23:15.

against our national unity Government which was only struck a

:23:16.:23:19.

few days before the Hebron incident. It was his attempt... The division,

:23:20.:23:23.

from the outside world, people have looked at Fatah and said you can

:23:24.:23:28.

negotiate better with Israel without Hamas being part of the

:23:29.:23:31.

negotiations. Do you see yourself as more compromised now, you have to

:23:32.:23:36.

move towards Hamas if you want solidarity for the Palestinian

:23:37.:23:38.

people. You have to move towards Israel if you want peace? Emily your

:23:39.:23:47.

question is the main point here is the Hamas-Fatah relationship, there

:23:48.:23:51.

is no Hamas rockets in the West Bank and yet the Israeli army have reeked

:23:52.:23:56.

havoc here in the last four or five weeks. Five Palestinians were

:23:57.:24:06.

murdered today, an Israeli settler decided to spray those leaving the

:24:07.:24:09.

mosque. There is no rockets in the West Bank, the only difference is in

:24:10.:24:14.

the West Bank we have a sweeping colonisation, and theft of land

:24:15.:24:19.

right in fronted of the cameras, this is not about Hamas. Thank you,

:24:20.:24:24.

your point very well made. Thank you very much for joining us, we have

:24:25.:24:31.

just run out of time. If you want to know what twitch ask

:24:32.:24:36.

a 14-year-old. The gaming site is on the verge of being bought by Google

:24:37.:24:42.

for $14 billion, it makes no sense until you realise the site has 45

:24:43.:24:47.

million dedicated gamers and more traffic than Amazon. It allows

:24:48.:24:51.

others to watch others playing games. Why would you want to? This

:24:52.:24:55.

is going well out of control. Who would want to watch teenagers just

:24:56.:25:00.

clicking away, playing their video games all night. Good pass, just you

:25:01.:25:06.

know so good. It turns out that number runs into millions. Twitch is

:25:07.:25:10.

a service that lets gamers broadcast what is on their screen, live to

:25:11.:25:14.

huge audiences around the world. Now Google is rumoured to be snapping it

:25:15.:25:19.

up for a billion dollars. One of its largest-ever deals. Google already

:25:20.:25:23.

owns YouTube and advertising on video, on-line on YouTube is already

:25:24.:25:28.

a big business. It is just seeing that Twitch is growing like a weed

:25:29.:25:33.

in the on-line video space. But cracking something that it has not

:25:34.:25:37.

done before, which is this live streaming, it really wants a slice

:25:38.:25:41.

of that pie to expand the YouTube business. It all might sound like a

:25:42.:25:45.

silly amount of money, but the other numbers linked to Twitch are just as

:25:46.:25:51.

impressive. Last year the site attracted 45 million viewers every

:25:52.:25:55.

month. Making it by far the largest of its type. At one point it

:25:56.:26:00.

accounted for 43% of all live streaming across the entire

:26:01.:26:05.

internet. YouTube, by comparison, makes up just zero. 5%. But there is

:26:06.:26:11.

another statistic that makes it incredibly attractive to

:26:12.:26:15.

advertisers, more than 60% of its young viewers watch for more than 20

:26:16.:26:19.

hours a week. The kind of number that would make a middle-aged

:26:20.:26:22.

television executive weep. If you said ten years ago that people would

:26:23.:26:26.

be literally watching live as someone else played a video game,

:26:27.:26:31.

and that would be an enormous video business, no-one would have believed

:26:32.:26:34.

you. And yet it is enormous in Asia, that is why you haven't heard about

:26:35.:26:38.

it much in the west. But it is part of a much wider global trend. Kids

:26:39.:26:42.

today don't watch traditional television in the way they used to.

:26:43.:26:46.

They are watching video games, like their real sports. Crazy stuff at

:26:47.:26:55.

the University of Effort. But the success of Twitch tells us something

:26:56.:26:59.

about how the media landscape is changing. The rise of streaming

:27:00.:27:03.

sites has made stars of young video bloggers like JJ from Watford. I

:27:04.:27:07.

thought I would be a bit more real this time. He has more than eight

:27:08.:27:11.

million regular subscribers, making his work incredibly influential,

:27:12.:27:14.

he's a big user of sites like Twitch. TV is boring, you can't

:27:15.:27:23.

choose what you want to watch, you just see what you want to watch.

:27:24.:27:26.

With the Internet you are able to pick what you want to watch. Choose

:27:27.:27:31.

and you are able to choose what you want to watch at a certain time. But

:27:32.:27:36.

Twitch doesn't just let gamers broadcast their video its be also

:27:37.:27:43.

the leader in competitive gaming, a semiprofessional spectator sport

:27:44.:27:46.

which is offering prize pools bigger than major golf tournaments. A World

:27:47.:27:51.

Championship event was held in Seattle, boasting a prize pool

:27:52.:27:56.

reaching more than $10 million. We love it, obviously in Asia they love

:27:57.:28:05.

it like insane. That's why they are able to have e-sports events and

:28:06.:28:11.

sell out arenas and have dollar 11 million prize spots. It is insane.

:28:12.:28:16.

In way the purchase of Twitch is not gamble on the future. For millions

:28:17.:28:20.

of young teenagers and gamers around the world, this is a major part of

:28:21.:28:27.

their daily lives. Let me take you through tomorrow's papers before we

:28:28.:28:31.

go. The times has a new missile threat.

:28:32.:28:49.

That's all for tonight. We leave you with ruby Hughes, the celebrated

:28:50.:28:58.

soprano performing at the Royal Albert Hall on Sunday. Though

:28:59.:29:06.

performs the lullaby Nana. ?CLEAR

:29:07.:29:40.

She performs Nana in Spanish) Another warm night ahead, but the

:29:41.:31:11.

heat will ebb away this weekend. The mist low cloud in eastern areas

:31:12.:31:15.

burning off quickly. Most of England and Wales having a dry, warm day.

:31:16.:31:19.

Something a

:31:20.:31:20.

Can Ed Miliband get past his image problem? George Osborne on the economy. Gaza. Google buy Twitch.


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