26/07/2017 Newsnight


26/07/2017

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Time was, you would never have believed we could exist

:00:00.:00:00.

Now it's official policy that we will.

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We'll look ahead to how motor transport will work after 2040.

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But do we need to worry a little more about our oil-polluted air

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What the government was required to do was to prepare air quality

:00:22.:00:27.

plans which would reduce the levels of pollution in the

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Something which works in the next 23 years is not going to reduce those

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pollution levels in our towns and cities in the next

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We'll test the government's ideas for cleaning up our atmosphere.

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In the midst of a week of drama here at the White House, I'm joined by

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one of Donald Trump's key lieutenants, Sebastian Gorka.

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What has the President achieved in the

:00:49.:00:50.

Ten years ago, Anita Roddick, the environmentalist and founder

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of the Body Shop died, one of the most high profile victims

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We hear from her daughter Sam for the first time.

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She was pretty clear that she got it through the

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And, you know, I could really hear the

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vulnerability in her voice because my mum really feared death.

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Was it an announcement to which there was less

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A ban on petrol and diesel cars to come into effect in 2040.

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It was designed as an answer to what you do about air quality,

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As fumes are killing thousands of people a year now,

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Some think it is actually a distraction from

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But there were other measures, too, and we'll discuss those shortly.

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And there is a sense that regardless of what government says,

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we may be in the latter days of oil-driven cars.

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Assuming we can work out where we get all the electricity

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Our technology editor David Grossman has been looking

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at the prospects for motor transport and the air we breathe.

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This is what is done for electric cars up to now, the convenience of

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pumping 400 miles of range into a car in minutes at any one of 8500

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service stations nationwide but change is coming by order of the

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government. We have to get petrol and diesel cars off our road and

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make sure we deal with the problems and pollution causes and beat

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targets. The announcement was to divide as part of the response to

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the air pollution crisis. The government had been ordered by the

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High Court to come up with a plan to cut nitrogen dioxide. There is

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millions to help councils cut pollution but no diesel scrappage

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scheme yet. I think it is a smoke screen. What it does is helps to

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push us towards climate change goals, encouraging manufacturers to

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move away from combustion engines but we think the wind is blowing

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that way anyway but from the point of view of air quality, it will not

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do the job, we need quick measures soon. Moving from a world where we

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burn petrol and diesel to get about to one where we don't will be a huge

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journey requiring the reimagining of the transport infrastructure. We

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have a thriving car industry in the UK and yesterday BMW announced an

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electric version of the Mini to be made in Oxford. Not everyone thinks

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the target can be met without significant jobs moving overseas.

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What I am not OK with his setting up electric cars by 2040, but not

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developing a Nasa, we do not have the capability to manufacture,

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engineer and design batteries, motors, inverters, infrastructure in

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the UK right now. Where is this extra power going to come from? In a

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recent report the National Grid estimated we could require six new

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power stations the size of the proposed Hinkley C nuclear power

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station to charge these new vehicles by 2050. This is a typical example

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of a charge point. This company has sold 40,000 electric car charge

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point since 2009. Although they welcome the government announcement,

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they do not think it ambitious. Technology is changing 30% every

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year and gets 30% cheaper each year which means the electric vehicle

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becomes the same price as the internal combustion engine vehicle

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by 2020 and after that the electric vehicle becomes cheaper than the

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combustion engine and when you wonder how we get to mass adoption

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by 2030, they are cheaper and better by 2020. The move to electric

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vehicles is one of four big changes taking place in transport.

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Autonomous vehicles, smart cars, big data, will combine to change the way

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we get about. Taxi and ride sharing apps as well as smart routing apps

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promise to reduce the number of cars needed in future. Cars are used 5%

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of the time and 80% of the time people are driving on their own. You

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would not get into a plane with 80% of the seats empty. What we need to

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do is make the road network more efficient and give people more

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options and I think that is what you will see in the next 20 years,

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people have more options on how to get about, not necessarily thinking,

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I need to own a car. The speed with which technology is moving is likely

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to impact on every aspect of our lives. By 2040, the disappearance of

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diesel and petrol cars might be one of the least remarkable things to

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happen. We asked the government

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whether the Environment Secretary or any of his junior ministers

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was available to join us I'm joined instead to discuss this

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from Brighton by Caroline Lucas, And in the studio by Martin Tett,

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who is the Conservative leader of Buckinghamshire Council

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and the Local Government Association's spokesman

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on the environment. Caroline Lucas, are you glad we have

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had this announcement, the 2040 deadline, or do you think it will be

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history by the time we get there? I think it will be history, it is too

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little too late. The only reason we have had it at all is because of EU

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legislation and court cases forced the UK to act but other countries

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like Norway and Germany and India are moving more quickly than we are

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towards that target, looking at 2025, 20 30. In the meantime people

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are dying now from causes related to air pollution. It is a public health

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emergency and we need to see the longer term target in terms of

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getting diesel and petrol cars off the roads but we want to see a

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transformation in the transport systems and I mean massive

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investment in public transport as a starter. Would you have had a diesel

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scrappage scheme? We think a properly funded diesel scrappage

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scheme is part of the solution, but I think this focus on just one

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element does not do justice to the whole picture and we need to have

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nothing less than a paradigms shift where we ask bigger questions about

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expectations about how we get from A to B in the future. We need to

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redesign our towns and cities to make it easier to get about without

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needing a private car all the time. We ought to be making walking and

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cycling easier and making public transport more affordable. Martin

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Tett, local government has to produce local plans to get rid of

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local air pollution. They are dumping this on you because they do

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not want to put in diesel scrappage schemes that are expensive or tell

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diesel owners they have to pay to drive into city centres. They are

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dumping it on you? I welcome the fact the government has focused on

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this and agree with Caroline that they have been forced to do this by

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the legal case but it is a dangerous thing. Nitrogen dioxide is dangerous

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to human health and the focus is welcome and local government is

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ready to play its part in solving the problem. We are local to people

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and know the solution is required. But the devil is in the detail. You

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have to have the right funding available at the right time to solve

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these issues and that can cost money. If there is a breach in a

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local area and somebody can say your local plan did not deal with air

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pollution in this area, are you sued by the lawyers who have just sued

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the government and won, or the government? It is a good question

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and I do not know the answer but what is important is we get funding

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upfront and the government is talking about 40 million. 29 areas

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have been targeted. We have to design the right schemes to tackle

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this problem. It will mean more public transport, walking and

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cycling, redesigning roads, getting rid of speed bumps. Some will take a

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long time to work out. Caroline said we need to be designed towns and the

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way we live, that sounds longer than 2040. With great respect to

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Caroline, redesigning existing towns is difficult. There is an historic

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street scene. It is not easy. Councils can look at what can be

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done. There may be a requirement to look at charging in some towns in

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terms of entry to towns and I know the government is not keen on that.

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Caroline, do you accept the social change you are talking about takes a

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long time? It does not have too. If you look at the simplest things in

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many European countries where for example it is normal for most kids

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to get to school by walking because they have the so-called walking

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crocodiles where they organise kids to walk together. We could be

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learning so much from what has been done and already re-engineered in

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places like the Netherlands and Nordic countries. We need

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imagination and political will and together those things can take us

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far. This is a public health emergency and we need radical

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action, more than we have seen from the government so far. Caroline, can

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you think of anything government has ever announced on a green measure

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where you have not said it is too little, too late? That it needs to

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move further and faster? The role of the Green Party is to spur on other

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parties and to be more ambitious. 2040, 23 years away, right now we

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have kids told they cannot play in playgrounds because the air

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pollution is too serious, in the 21st century. We ought to be in a

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society where kids can play safely outside, not waiting 23 years for it

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to happen. Thanks. We have news tonight on the causes

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of the fire at Grenfell Tower. We have reported the government is

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conducting large-scale tests on the cladding used. We know a lot of

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buildings have combustible cladding. The point of these tests is to work

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out which designs are safe or unsafe. Chris Cooke has

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followed this for us. You managed to obtain the results of the first

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test. You have to understand you can have combustible elements outside a

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tall building and it can be safe, if it is properly installed, fire

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broke, meaning having measures to stop the fire spreading. The

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question is whether... Which specific sets of design should be in

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use on buildings which should not. The first test was on the choice of

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materials at Grenfell Tower, what is called a PIR foam, a combustible

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plastic foam, and plastic core aluminium tiles on the outside. We

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went to the test centre and were allowed to film them installing, we

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have footage of that. It gives you a sense of the scale of how big the

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test is. It is a tool set. What you can see, the black horizontal strips

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are firebreaks that are supposed to stop the fire moving vertically and

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the yellow strips you can see are supposed to stop the fire moving

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left to right. It is a test on the choice of materials used at Grenfell

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Tower, installed perfectly. It is not about maybe they messed up

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installation and did not include firebreaks. They conducted a test.

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You see on the footage, all the firebreaks in place. And it burned.

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The test was an absolute failure. What does that tell us about the

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building industry and the way it was using tests? How important

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It reveals using that choice of material would never have been

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acceptable, and the building industry has got into the habit of

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using materials on tall buildings that fundamentally should not be on

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them. If someone followed the simple matter of the law and did a proper

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test over two years ago, that cladding would never be on that

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building. It would never have passed? It creates a record in the

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system that should have stopped this. Chris, thank you very much. We

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will talk about those chlorinated chickens and Anglo-American trade

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and... Well, I'd like to say

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that over in the US they are talking of nothing other

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than the opportunities for trade with the UK,

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but the President has diverted attention to other things this week

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and again today, Emily is still over We are fresh from the press briefing

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where President Trump said he was going to ban transgender people from

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the military, he is doing what many people say as progress with LGBT

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rights which he promised to support after the Orlando Gay massacre. He

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says it costs the military too much and critics say that he is playing

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to his base, veterans, who don't like change, many will say this was

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a distraction from the other things happening this week, some

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successfully and others not. We had Congressional hearings investigating

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whether there was collusion of any kind between members of his team and

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the Russians and the doomed health-care bill, we have heard the

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Senate has voted down the straight appeal of the Affordable Care Act,

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they have not got rid of Obamacare and the big question of what will

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become jazz sessions. Sean Spicer left his job and the man in charge

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of communications is Anthony Scaramucci, his first interview...

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Tell us first of all, what we should understand about the relationship

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with Jeff Sessions? I think those are both principles, as the

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communications director it would be inappropriate to get into the middle

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of that, this will resolve itself over the next week and what I would

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say to colleagues and Cabinet members is you must understand the

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personality of the President, he is a straight shooter, he likes to

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express himself and let people know how he feels, sometimes those are

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tough conversations. Why is he tweeting? Letting rumours take over?

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He is a very tough person and I mean that in a good way, trying to use

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the pulpit in the Oval Office and his Presidency to execute an agenda

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on behalf of the people. Do I think he will stay? Wait for the

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President. Would like to see the chess sessions staying? I do not

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want to interrupt the outcome, between the Attorney General and the

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President. I have worked with the Attorney General on the campaign, I

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am huge supporter of the President and his agenda but what I would say

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to colleagues here is have a very tough exoskeleton, have a tough

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backbone and they will meet... Does that mean allowing the President to

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be rude to you and to basically slack you in a public forum? You are

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from Great Britain, I am from a town on the border of Queens, the

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President grew up there, we have a different communication style, it is

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more direct, less subtle and polite but you do not think politicians in

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your hometown are hitting each other? Perhaps more subtly, but I

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like the more open approach and one thing I cannot stand about this town

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is the backstabbing. Where I grew up in my neighbourhood, we stab from

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the front, what we are doing. To me, if you can handle the personality of

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the President, which I happen to love, you will do great. I will not

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cut you off, I will talk about front stabbing. He has been front stabbed

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by some of the senators who voted down the repeal of Obamacare. That

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is Congressional setting, conversations go on, the team of

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rivals, it took President Lincoln many times for the abolition of

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slavery, that was much tougher. Even under President Obama be voted to

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get rid of Obamacare, only the President kept that going and under

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President Trump... Aged 24 months -- 22 months. We have six months so far

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with the President here and think of what we're trying to achieve within

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just one year, the President will make it so, we will replace

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Obamacare, you will get a level of tax reform we have not seen since

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1986 and we do that within 12 months and that will be remarkable. You

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think you will get a health care plan... ? What kind of time frame? I

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am living in Washington, do you live your? You are lucky. You don't live

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here, what happens in Washington, people say something to your face

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and they don't mean it. Something else behind your back. With the

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President it is good leadership to say what he means to the faces of

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people and resolve it or not. We will either reconcile or go in

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different directions but everybody knows how we feel. I have had tough

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conversations with the President, we have known each other for a very

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long time and he is remarkably loyal, the loyalty has to be

:20:31.:20:35.

symmetrical and good loyalty is symmetrical, you do not want a

:20:36.:20:41.

symmetrical loyalty and the people are fed up with the city so I am

:20:42.:20:46.

calling on my friends in this city, to dial things back, support the

:20:47.:20:50.

agenda for the President because it is your long-term agenda. If you

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were running a campaign and somebody said, we have serious dirt on your

:20:58.:21:03.

opponent from Russia, would you take that meeting? I will stand by the

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President's remarks, most people would. Myself included, we are

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political neophytes, had Donald J Trump Junior, he is a friend of

:21:18.:21:22.

mine, I know he has done absolutely nothing wrong and he will be

:21:23.:21:26.

completely exonerated. I did not say he was naive, he is inexperienced.

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There is a difference, inexperience is, OK, I have some curiosity... Why

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would you not go to somebody who is experienced and say, should I take

:21:41.:21:46.

this meeting? If you think about how phenomenal this campaign was,

:21:47.:21:51.

skeletal staff, spending less than two thirds of what President Clinton

:21:52.:21:58.

spent, that small operation, she had thousands of the country, think

:21:59.:22:03.

about how upset the middle class people wear, I came back from

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London, I was with the Dean of Harvard, why Brexit? All of the

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elites within London said they were never going to do that and I said,

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have you been to a Bernie Sanders rally or Donald Trump rally? That

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will explain. I have been to both of those rallies and I want to bring

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you back onto the Russian question because this is threatening to

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undermine every other thing the President is trying to do. I do not

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believe that, it is damaging short-term because there is lots of

:22:38.:22:43.

nonsense going on because this town manufactures scandals, we

:22:44.:22:48.

manufacture fake scandals so we can disrupt people, we can hit them

:22:49.:22:53.

personally. The son of the President... I am just asking, do

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you not find that extraordinary? It is not the town, it is Congress. She

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said he had a very good feeling about Jared Kushner, incredibly

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honest, what is happening and I love this is the elite and the media

:23:12.:23:17.

establishment who want to hit the President with Russia every day

:23:18.:23:21.

recognise there is nothing to that Russian story. The business side or

:23:22.:23:25.

the politics side or inheritance, what part of Donald Trump... There

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are so many things about the President. Everybody eats

:23:31.:23:37.

cheeseburgers and pizza. What are you talking about? You are coming

:23:38.:23:41.

across as elitist, I grew up in a middle-class family with a tight

:23:42.:23:47.

budget and little to no money, I spent 30 years trying to get into

:23:48.:23:51.

the global elite to serve the President and I miss that movement,

:23:52.:23:57.

I'd tunnelled myself into the elites and we had this circular

:23:58.:24:01.

conversation about what went on. Donald Trump is not an elite? He has

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both, he knows how to operate in the elitist world and he has empathy for

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the common struggle with the middle-class people and the lower

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middle-class people, he has something I do not have and it is

:24:16.:24:19.

embarrassing to admit this, but I missed the movement. I grew up in a

:24:20.:24:25.

middle-class family and they did not size up the desperation taking place

:24:26.:24:30.

in my hometown. Some good news, he was very excited, he was encouraged

:24:31.:24:38.

about a trade deal with the UK. Just to get into those specifics, our

:24:39.:24:42.

environment secretary said he would not do a deal with the US if it

:24:43.:24:47.

meant accepting chlorine rinsed check-in, that is the big question

:24:48.:24:52.

in the UK, would the US administration make those

:24:53.:24:56.

concessions? We are meeting each other for the first time, I have no

:24:57.:25:01.

idea what is going on with chlorine enriched check-in. I could pretend

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to make something up but I will not do that but if you interview me in

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one week I will figure what is going on their... Will we get a trade

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deal? 100%, Donald Trump loves the UK. Do you want a trade deal with

:25:17.:25:23.

the UK? You don't answer the questions? Do you want a great trade

:25:24.:25:28.

deal? Of course we do. Think about the special relationship since the

:25:29.:25:33.

inception of this nation, there was a group of rich guys who said, we

:25:34.:25:38.

will break away from the other country and start our own, this was

:25:39.:25:42.

a disruptive start-up and a President is bringing it back to its

:25:43.:25:45.

roots of disruption. We will disrupt... Powders that making

:25:46.:25:55.

concessions with the UK mean? Review meet us halfway? I don't think so,

:25:56.:26:00.

he is about being fair and equal with trade, he wanted to be

:26:01.:26:05.

reciprocal and there is historical context, coming out of World War II,

:26:06.:26:11.

the US but in the Marshall plan and working with the state and

:26:12.:26:15.

treachery, we have the trade deals to align goods and services to flow

:26:16.:26:21.

freely into the US and accepted some level of viral activity to grow

:26:22.:26:26.

those middle-class groups. Last question, in the job for less than

:26:27.:26:30.

one week, give us some sense of how it feels being at the centre of the

:26:31.:26:35.

White House? I am having a lot of fun, I love my country, I told

:26:36.:26:39.

people at the press conference last week that no one has ever worked for

:26:40.:26:44.

me, I am getting collaboration to get people around me to win, I had

:26:45.:26:51.

lunch with the President today, and does it look like he is having a

:26:52.:26:55.

good time? Yes. I am here to serve at the discretion of the President,

:26:56.:26:59.

if he wants me to leave tomorrow, I will not stay. Thank you for joining

:27:00.:27:07.

me. And I am not an elitist. You can come back and call me an elitist any

:27:08.:27:12.

time you want! I apologise to your viewers! We will explain why there

:27:13.:27:23.

was a lot to unpack here and just one week into the job, we will come

:27:24.:27:28.

back when we know more. Emily, thank you very much! We have a sense of

:27:29.:27:32.

the view from the White House. Well, we got a sense of the view

:27:33.:27:36.

from the White House there. But earlier this week

:27:37.:27:39.

the talk was on trade talks. And specifically of

:27:40.:27:42.

chlorinated chicken. You can dismiss it as a mere detail,

:27:43.:27:43.

but it is the little things that Everyone agrees with the abstract

:27:44.:27:47.

principle of free trade, it's only the details

:27:48.:27:50.

they argue over. The issue of chicken,

:27:51.:27:52.

US food standards and a trade deal has already made for nuanced

:27:53.:27:55.

differences in approach See if you can spot them -

:27:56.:27:56.

first Liam Fox on this programme last night,

:27:57.:28:00.

and then Michael Gove this morning. We have no intention of reducing

:28:01.:28:12.

standards, we have said we think British standards and protection for

:28:13.:28:18.

the consumer... You will rule out chlorine washed chicken? There is no

:28:19.:28:23.

health issue, the EU said it is perfectly safe. The issue lies

:28:24.:28:27.

around some of the secondary issues of animal welfare. Chlorinated

:28:28.:28:37.

chicken? Should that we allowed? We don't need to waste time on this,

:28:38.:28:43.

yes to chlorinated chicken or no? No. I made it clear, something upon

:28:44.:28:48.

which all members of the government are agreed, we will not divert our

:28:49.:28:53.

welfare animal standards or environmental standards in pursuit

:28:54.:29:00.

of any trade deal. They could do with an alignment meeting. Chicken

:29:01.:29:03.

is just one issue, the bigger question... We will have to buckle

:29:04.:29:09.

to US pressure to trade on their terms and regulations will they

:29:10.:29:12.

sometimes boggled as? Could we persuade them to reach a deal on

:29:13.:29:16.

financial regulation allowing for more business for banks, for

:29:17.:29:20.

example? This is the stuff that determines the direction of Brexit

:29:21.:29:25.

Britain and Chris Kirk has been looking at how a deal might come

:29:26.:29:26.

together. The free trade agreement that

:29:27.:29:29.

Britain will ultimately have to negotiate with the European Union

:29:30.:29:32.

should be the easiest FTA Liam Fox's confidence

:29:33.:29:35.

about an EU trade deal, though, may be hard to square

:29:36.:29:44.

with his enthusiasm To see why, you can look

:29:45.:29:46.

at the argument about so-called Unlike the UK, the US is pretty open

:29:47.:29:50.

about its trade policy objectives. They publish an annual report

:29:51.:29:57.

on foreign trade barriers which lists for every country

:29:58.:30:03.

in the world what they would like to see addressed in any

:30:04.:30:06.

forthcoming trade agreements We know, for example,

:30:07.:30:08.

that for Britain, they are concerned about how much money we spend

:30:09.:30:12.

in subsidising We know that there are American

:30:13.:30:14.

products they wish they could get into our market - for example,

:30:15.:30:22.

genetically-modified corn, hormone-boosted beef and, most

:30:23.:30:24.

famously, chlorine-washed chicken. A critical thing to grasp

:30:25.:30:28.

is that the EU and the US disagree fundamentally about how

:30:29.:30:31.

to regulate poultry farming. Here in the EU and the UK,

:30:32.:30:36.

the approach taken by farmers is one that seeks to keep the animals,

:30:37.:30:41.

for example in chicken and poultry farming,

:30:42.:30:45.

healthy right throughout Rather than one that seeks control

:30:46.:30:48.

pathogens simply at the very end of the production process by washing

:30:49.:30:59.

the carcass in chlorine-based The thing is, though,

:31:00.:31:02.

these things are more than about, Some of them really exist to help

:31:03.:31:05.

shield European farmers So, you might think,

:31:06.:31:15.

why don't we just do away The problem is, letting in food

:31:16.:31:19.

into the UK that cannot be sold in the EU might cause us problems

:31:20.:31:27.

with the European Union. If the UK goes and signs up

:31:28.:31:30.

to a trade deal with the US before it has ironed

:31:31.:31:33.

out its own relationship with Europe and it starts accepting things that

:31:34.:31:36.

are currently banned in Europe, it makes it quite difficult

:31:37.:31:38.

to have an open border between the UK and the EU

:31:39.:31:41.

because the EU will be worried about the UK becoming a back door

:31:42.:31:44.

channel for products coming from the US into Europe

:31:45.:31:46.

via the UK but are not If we were to change our regulatory

:31:47.:31:49.

standards to allow things, for example, like chlorinated

:31:50.:31:55.

chicken into the UK off the back of a trade deal with the US,

:31:56.:31:59.

then we would find ourselves struggling really significantly

:32:00.:32:05.

to trade with the EU and, in fact, you would find a situation

:32:06.:32:08.

where hard borders would have to be established, particularly

:32:09.:32:12.

between the Republic of Ireland and Northern Ireland because the EU

:32:13.:32:16.

would want to manage very closely the trade of goods between the UK

:32:17.:32:20.

and the EU. This is not to say that good

:32:21.:32:25.

deals for both the US But chlorinated chickens may be

:32:26.:32:28.

in a category where we have As Emily Maitlis found earlier,

:32:29.:32:36.

US farmers may build up their EU It is very premature

:32:37.:32:43.

to start talking about those kinds of negotiations,

:32:44.:32:47.

those are all things But, again, we have alternatives

:32:48.:32:49.

to chlorine currently being used that we can use,

:32:50.:32:53.

if it does come down These are things that have

:32:54.:32:58.

already been approved by the European Food Safety Authority

:32:59.:33:05.

that they use to meet domestic standards and also

:33:06.:33:08.

international standards, where we have shipped

:33:09.:33:12.

to more than 100 countries. So just to clarify, you could forego

:33:13.:33:15.

the chlorine rinsing if it meant But sometimes trade partners may

:33:16.:33:18.

have rules that force Andrew Lilico is an economist

:33:19.:33:27.

and the managing director And something of a Brexit optimists.

:33:28.:33:44.

Good evening. A lot of the Brexit optimism pins on things like free

:33:45.:33:50.

trade deals with the US. One feature. Do you accept they may not

:33:51.:33:55.

be willing to bow to our regulations and we will have to bow to theirs? I

:33:56.:34:01.

think one feature of trade deals is when you have free trade you do not

:34:02.:34:06.

have to have the same regulations and we can have regulations and sell

:34:07.:34:10.

things into the US which means they can have their way of doing things

:34:11.:34:15.

and sell things to the UK. We are used in the EU that in order to

:34:16.:34:18.

trade we have to produce everything the same way that that is not how

:34:19.:34:27.

free trade works. The point is you have a symmetry. Just to be clear,

:34:28.:34:30.

that would mean we let in chlorine rinse chicken. You would let it in,

:34:31.:34:36.

probably label it, so consumers can make their own choice. And then you

:34:37.:34:41.

say free trade can occur. Consumers can choose. If they don't want that

:34:42.:34:48.

they can buy something else. Do you think the Americans are free

:34:49.:34:54.

traders? Are they a bit like the EU? They will say, we understand you,

:34:55.:34:58.

small Britain, will buy our chicken and sell it as an alternative, but

:34:59.:35:04.

we will not let your banks trade on your terms, we will let them trade

:35:05.:35:10.

here on our terms. Historically the US have not been particularly

:35:11.:35:17.

pro-free trade. In the case of the UK, they are keen to do a deal. What

:35:18.:35:23.

President Trump wants to emphasise is he is not anti trade, he is in

:35:24.:35:28.

favour of reciprocal, symmetric agreements. He does not want

:35:29.:35:32.

agreements where you have deals with countries that have lower wages and

:35:33.:35:37.

lax standards, which leads to large trade deficits. He wants deals where

:35:38.:35:43.

it is balanced trade, you have the same kinds of standards and wages

:35:44.:35:48.

and he is keen to show he is not anti trade and will want a deal with

:35:49.:35:51.

the UK because Americans are in favour. America has not given up on

:35:52.:36:00.

global trade, so a sign? It is difficult, do you think a free-trade

:36:01.:36:04.

deal with the US would improve our trade balance with the US and we

:36:05.:36:10.

would X bought more on or would it improve their trade balance? I would

:36:11.:36:15.

hope it would be in both directions. It cannot be. I hope it increases

:36:16.:36:21.

imports and exports. What about the balance? I think he is worried about

:36:22.:36:27.

their deficit. Some people here think we need to export more and

:36:28.:36:33.

import less. Increase exports by more than imports. The main benefits

:36:34.:36:38.

to a country from trade deals are rising increase in imports Annsert

:36:39.:36:42.

Whyte is better for consumers and from the point of view to the

:36:43.:36:46.

challenge to domestic companies to face more challenge from imports,

:36:47.:36:51.

which is what the economic evidence suggests. I think we will have

:36:52.:36:56.

improved export opportunities. I don't think it can be our trade

:36:57.:37:02.

deficit improves with regard to the US and their trade surplus improves

:37:03.:37:07.

with regard to us. It is not both. I suspect you would not have an

:37:08.:37:11.

enormous change in either direction. One interesting thing to point out,

:37:12.:37:18.

a funny secret of trade, although on the UK date we believe we have a

:37:19.:37:23.

large surplus with the US, on US data they believe they have a small

:37:24.:37:30.

surplus with us. One of the implications is from the US point of

:37:31.:37:33.

view they do not think it is a problem to solve. The US and EU have

:37:34.:37:41.

negotiated their own trade deal. Do you think our deal, at the end of

:37:42.:37:45.

the process, will be better than the one the EU will sign? Probably

:37:46.:37:50.

better from our point of view. The EU may think the deal they get with

:37:51.:37:55.

the US is better from their point of view, and I suspect we will get at

:37:56.:38:00.

least a good deal from our point of view as theirs. Their deal is on

:38:01.:38:07.

offer to us. If we are in the EU, we get there deal automatically.

:38:08.:38:11.

Assuming they get the deal. We have to sign a deal that is so much

:38:12.:38:15.

better than theirs it offsets whatever reduction in trade we get

:38:16.:38:19.

from the EU. I don't think one should expect a deal with the US by

:38:20.:38:28.

itself, although it is the country which is the largest single exporter

:38:29.:38:35.

in the UK. -- I think there is a game to be made. The EU estimates

:38:36.:38:40.

the trade deal with the US should gain half a per cent of GDP and for

:38:41.:38:44.

the UK we might expect to do better in terms of the deal we might get

:38:45.:38:49.

with the US. I think the EU has shown itself it is difficult to do a

:38:50.:38:53.

deal with the US up to this point. I think we will do a deal with it

:38:54.:38:57.

quicker which might mean we gain because the US does a deal quicker

:38:58.:39:02.

and because we are doing one, they will do one with the EU, as well.

:39:03.:39:09.

Because of our unexpected guest in Washington we do not have time for

:39:10.:39:14.

the interview we promised with the daughter of Anita Roddick and we

:39:15.:39:15.

will bring it as soon as we can. Before we leave you,

:39:16.:39:19.

yet another blow for Western patriarchy was announced today

:39:20.:39:21.

when we learned that the sperm counts in North America, Europe,

:39:22.:39:23.

Australia and New Zealand have No one quite knows why it's

:39:24.:39:26.

happening, but here's a reminder # I thought that I heard you

:39:27.:39:30.

laughing Wherever you are in the UK,

:39:31.:40:18.

tomorrow is one of those "grab We have a driving area of low

:40:19.:40:33.

pressure to the west of Scotland,

:40:34.:40:37.

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