04/03/2012 Sunday Politics London


04/03/2012

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Welcome to the Sunday Politics. Our top story: will the coalition

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agreed to scrap red tape in the Budget to make it easier for

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employers to hire and fire? I will ask the new Lib Dem business

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minister, Norman Lamb. Alex Salmond has and one to business referendum

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until late 2014, but says he will kick off the Yes campaign in May.

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Scotland's first minister joins us for the Sunday interview. As the

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price of petrol reaches record highs, should the Chancellor cut

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fuel duty? The petrol head and a green campaigner go head-to-head.

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And our top political panel here to analyse British politics in the

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week ahead, and tweeting fervently throughout the programme. It London,

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should a Christian charity be allowed to provide a paid

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parliamentary interns. Some MPs say controversial views on

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All that and more in the next hour, There is new evidence of the scale

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of funding cuts charities are facing. A leaked report suggest the

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sector has lost at least �1 billion of funding in the current financial

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year. The Cabinet Office disputes the figures.

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Some of the funding hasn't materialised. This Nottingham

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counselling Service has told people for more than 30 years. The charity

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was held by it there hundred million pounds Transocean fund set

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up by the government to help charities adapt to cuts in funding.

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-- transition fund. It found in the leaked report that charities face

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to cut of �524 million in the financial year and estimated cuts

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to all UK charities would be between �1,000,000,005.5 billion

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I think we can be fairly sure that the charity sector is being hit

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disproportionately hard and we can be confident that this year's cuts

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are going to be harder. Charities are calling on the Chancellor to

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announce another transition fund in his forthcoming Budget. But money

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is tight. The government said reforms including tax incentives

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and greater access to contracts would provide an extra �600 million

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for charities over this Parliament, but, said this report, that

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represents the facts. It made all kinds of extrapolations from

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analysis of a relatively small number of charities that by

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definition were the most vulnerable. There will be a reduction in public

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expenditure on charity, but the question is as a government, what

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are we doing to support and strength and the sector.

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Cabinet Office's dispute the figures, but no one denies that

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charities are struggling in tough economic times, and that is a worry

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for the government with the Prime Minister committed to opening up

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public services and giving the voluntary sector a far greater role

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in tackling societies deeper A man has been shot dead by police

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after they stopped a car in which she was travelling. The incident,

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which took place in Cheshire last night, has been referred to the

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independent Police Complaints Commission. Two men were arrested

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at the scene. At least 15 people have been killed and more than 50

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injured in a head on a train crash in southern Poland. The trains were

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travelling at high speed on the same track. Fancied for the moment.

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More news at after 6:30pm. -- that Less than three weeks to the Budget

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but the coalition is trying to reach agreement on measures to

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boost economic growth. Let's talk to the Liberal Democrat business

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minister, Norman Lamb. Mr Lam, do you plan to do anything to make it

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easier for small businesses to hire and fire? Well, yes. The government

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is all ready work in -- already working on ways to ease the route

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to take on a new worker, just the simple things to make it easier to

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get all the different measures in place when you take on an employee.

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That is often very difficult for small businesses. We are also

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extending the qualifying period before you can claim unfair

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dismissal between one year up to two years, and addressing the

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problem of settling disputes when things go wrong, making it easier

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to settle disputes and reduce the number of claims that end up in

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tribunals. There are already a number of things that we are doing.

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And there will be a call for evidence to look at what happens

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internationally, both in countries like Germany and Australia, to get

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used of people in this country as well about how you can ease the way

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forward for small businesses -- get the views of people in this country.

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Would it be fair to say you are against the report that was

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commissioned in Downing Street? You are against the report's radical

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plans to cut employment regulations. Correct? I want there to be a

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rational debate about this. I was an employment lawyer and I

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understand employers frustrations very well. I want to address the

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anxieties that employers have about the challenges of employment law.

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So are you largely for or against the changes? Why I am against is

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encouraging a culture of hiring and firing. The best employment

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practices to recruit well, investing your staff, and that is

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the best way to improve productivity. -- invest in your

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staff. I recognise there are many employers to get anxious about what

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happens when a number employee -- and employees underperforming. I

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have ideas from my own practice in employment in how we can ease the

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way for employers to resolve the problems, often reaching agreements

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with the employee. The problem is you have to go to an expensive

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lawyer at the moment to get it sorted out, something like I used

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to be. What we want to do is mainstream the approaches I used to

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make it easier for small businesses to deal with those problems when

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they arise, and I think that is a really important thing we need to

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tackle. Some of that sounds like tinkering at the edges. Wouldn't it

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be fair to say, as the Tories say, that the Lib Dems are the road

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block to the reform on this issue? Absolutely not. I have had

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constructive discussions with conservative colleagues about how

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to make the system work better. What we all are focusing on is

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finding ways in which we can boost employment, and that is critical.

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We can improve competitiveness. But at the same time we do not throw

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away employment rights that could increase anxiety and end up with

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unintended consequences. I think there is a way forward where we can

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achieve agreement on this, improving processes, and making it

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simpler for small employers to tackle these problems without

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losing the protection that is actually important for many working

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people. You are close to Nick Clegg. I am not asking what will be in the

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Budget, but he's your party of for a deal on tax, a cut on the top

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rate of income tax in return for higher property taxes on big

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houses? As a general sort of principle, I think shifting tax

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away from employment and onto an unearned wealth and pollution is a

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good principle, but the Lib Dem priority is to cut tax for people

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on low and middle incomes. That is where the squeeze is. Are you up

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for a deal or not? Our focus is absolutely on cutting tax.

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understand that, but are you up for a deal? That has to come first.

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then are you what run deal? I am not part of the budget negotiations,

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and you will have to wait until we know that the -- details. That is

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the principle, we want to cut tax for people on lower incomes.

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Whether Scotland decides to stay in the United Kingdom will go alone is

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an independent country is the biggest challenge to the British

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constitution in 300 years. Alex Salmond doesn't want to settle the

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question until the autumn of 2014. David Cameron once the issue

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resolved earlier, maybe much earlier, but what will the road to

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the referendum look like? At the moment there are more questions

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than answers. When is the referendum taking place? Autumn

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2014 is Alex Salmond's favoured date. Last week it was suggested

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18th October 1920 14 would be the day of destiny. But David Cameron

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has made it clear he does not want to wait that long. I think there is

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a strong case for getting on and asking the question. The Scottish

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people I speak to one to have this debate, they want to have the

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question answered. -- wants to have this debate. There is a cloud over

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Scotland's future. I don't see why we have to wait as long as the

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First Minister wants. One of the biggest areas of disagreement

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between London and Edinburgh is over what should be on the ballot

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paper. The UK government says they should be a single straightforward

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question on independence. But the Scottish government wants to

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include an option on Defoe Max. And then there is the question on who

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will be able to vote. Alex Salmon says 16 and 17 year-olds should

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have the vote -- Alex Salmond. But he wants to exclude Scots in the

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rest of the UK who are not on the as the mechanics of the referendum

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there is pressure on the First Minister to set out exactly what an

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independent Scotland would look like. I travel to Aberdeen to meet

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Alex Salmond for today's Sunday First Minister, Scotland face is

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the most decision -- important decision in 300 year, so I want to

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get clarity on what independence means. As head of state, you say

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you would keep the Queen. But it wasn't that long ago the your

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party's policy was to have a referendum on a republic and lots

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of your member -- members are of a republican mindset. Is this a

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change because you do not want to scare the voters? I think that was

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15 years, and in those 15 years parties have changed policies Major

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times at Westminster and are barely recognisable from 15 years ago, but

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for a number of years we put forward the proposition that Her

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Majesty the Queen and her successor should be head of state in a

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constitutional monarchy. Nothing unusual about that. Scotland and

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England had 100 years we have the same monarch a way independent

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countries. -- where we had the same monarch but where independent

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countries. The Queen is head of state in 16 countries at the moment,

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so we would be in the family of countries there. I think there is a

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wider message to people, and that is the aspect of the Social Union

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between Scotland and England that we want to see continue, and I

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think the monarchy is the personification of that. So no

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post-independence referendum on a republic? Correct. Let's move to

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another area way you seem to have changed policy. You have also said

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to want to keep the pound, but it also said -- it was long ago you

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were an enthusiast for the euro. Why the change? As was that Tony

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Blair government, and the Liberal Democrat government might be now. I

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am saying that I was just reported of saying that when the facts

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change, I changed my mind. I think it was a great adage from a great

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economist. Given the condition of the year wrote, that is not a

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sensible policy option to advocate -- given the condition of the euro.

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I don't think the euro is looking for additional members. We are

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looking forward as they Stirling's own, and that seemed to have a lot

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of strength. Three years ago you'd told Spanish television that euro

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membership is "a strong argument for independence". You also added

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in that sterling was sinking like a stone. I will rest on John Maynard

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Keynes. When the facts change, I changed my mind. Not a bad adage.

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But like with the flip-flop on the monarchy, it's hard to avoid the

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impression you have changed, because you know that Scotland do

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not want to join the euro even though you have been a supporter of

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membership until recently. You have done it again to not scared of

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horses, we will keep the head of state, keep the pound but a few

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years ago you were arguing for the euro. I was elected as first

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minister of Scotland by a substantial number of Scottish

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people in 2007 and re-elected by an overwhelming number of Scottish

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people in 2011. They seem to accept that the evolution of policy is

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Ayse -- a sensible thing in the modern world. So you will keep the

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pound? That is your policy. So interest rates would be set in

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London. I can remember a time when you would complain endlessly about

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interest rates being set in London but she would not change it? Again,

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the circumstances have changed. One of the arguments in terms of

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sterling was that it went to a long period of time where there was a

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premium on sterling interest rates, say over Deutschmark rate. We are

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now in a period where sterling interest rates, not the rate paid

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by businesses, but nonetheless the official Bank of England rate is

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extremely low and I don't think there is an interest rate argument

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against sterling at the moment. I think there are good arguments in

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favourite of the currency zone policy that we are putting forward.

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But interest rates would be set in an independent Scotland to suit the

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the UK, not Scotland. It will be the Bank of England setting it.

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do not have a single member, not a single Scot, who would be a likely

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candidate at the monetary policy at the Bank of England. We are saying

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if you look at similar arrangements in the past say between Belgium and

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Luxembourg to pursue a successful monetary union over many years,

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then Luxembourg had influence, not determination, but influence. But

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then who does determine interest rates? We live in an era of an

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independent central bank. wouldn't be you. But it would not

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be George Osborne of all the UK. I am merely pointing out that

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politicians in London or Edinburgh would not do it, but we would have

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ability through the monetary policy committee to argue in terms of the

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economic conditions. It is not a foregone conclusion they would have

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a member for you one. Who would back me? They are meant to be

:15:43.:15:53.
:15:53.:15:54.

Politicians at Westminster are also in a position of no political

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influence. If you have monetary union, which is what you're saying,

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all the lessons from the recent eurozone crisis are that for

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monetary union to work, it needs a high degree of fiscal union as well.

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So, in an independent Scotland, your fiscal policy would not be

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totally independent. I disagree with you. I think the fundamental

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lesson of the eurozone crisis is that for monetary union to work,

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there has to be comparable productivity rates between

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component members. The euro currently has a combination of

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different productivity levels, that's the underlying instability.

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One of the reasons that a sterling zone would work would be that we

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have similar productivity levels between Scotland and the rest of

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:16:59.:17:06.

the UK. I agree, you need a fiscal stability arrangement. One much

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respected economist here in Scotland, often quoted by your

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party, says that your fiscal room for manoeuvre would be limited.

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it would be limited, but if I may say so, I spelt it out a couple of

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weeks ago at the London School of Economics, to general acceptance, I

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would say, half a dozen fiscal policy initiatives you could make

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to boost growth within the context of a stability pact. Your fiscal

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room for movement is limited in the modern world anyway. By being part

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of a monetary union with the rest of the UK? I would not necessarily

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say that. Let's say that we said borrowing should not be more than

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3% over the long term, I would say that is no more than the fiscal

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discipline that any sensible country would have in any case.

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That's interesting, you would agree to enter into a borrowing packed

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with London? There would have to be a stability pact. Which would limit

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the amount you could borrow. Can we clarify whether an independent

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Scotland would have to reapply for membership of the EU? No, we would

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be a successor state, one of two successor states, both of which

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would have to negotiate, but within the context of the wider European

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Union. But there is no precedent for an EU member-state doing this,

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it is uncharted territory. There are and many leading legal experts,

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including at Glasgow University and Edinburgh University, and many

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others, who have said that Scotland would have to reapply. Why should

:18:55.:19:05.
:19:05.:19:09.

Scots believe you, rather than the experts? Many people, including

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former director generals of the European Union, all argue the

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contrary position, that both countries would be in the same

:19:17.:19:21.

position with regard to each other, and with regards to the European

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Union. And of course, there is no precedent for any country being

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expelled, either. We have established that it is

:19:29.:19:34.

unprecedented, though you are trying to give a guarantee - have

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you sought advice from your own Scottish law officers? We have.

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What did they say? You can read that in the documents that we have

:19:43.:19:48.

put forward. What did they say? cannot give you the review of the

:19:49.:19:53.

legal advice of the law officers, you know that. But what we can say

:19:53.:19:56.

is that everything that we have published his consistent with the

:19:56.:20:03.

legal advice that we have received. We can argue, lawyer against a

:20:03.:20:10.

lawyer... No, I am just asking you what the advice was. The only

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precedent I can think of in terms of the publication of legal advice,

:20:14.:20:20.

from any government, is the advice on the Iraq war. No government will

:20:21.:20:25.

publish legal advice. But this is about the future of our country. Do

:20:25.:20:29.

you not owe it to the Scottish people to publish both the advice

:20:29.:20:33.

of the Scottish law officers and the advice of Brussels? Have you

:20:33.:20:38.

got advice from Brussels? As you would expect, the commission has

:20:38.:20:43.

said that they will not answer an hypothetical question. Although you

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will have noted the number of agency reports saying that European

:20:50.:20:55.

Commission lawyers actually agree with the successor state argument.

:20:55.:21:00.

Why are you dragging out the referendum? I am not dragging it

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out at all. We have got to have a timetable which can be agreed in

:21:05.:21:09.

the Scottish Parliament. If I may say so, the people who are saying

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this seem to be in no fit condition to argue their case. So, run it now

:21:16.:21:20.

and win. I think it is important that when we come to the referendum

:21:20.:21:25.

in the autumn of 2014, that people have an exact proposition on

:21:25.:21:30.

independence, which I have pledged to give, everybody's questions

:21:30.:21:35.

having been answered to people's satisfaction. And of course, people

:21:35.:21:39.

in Scotland have to know what the alternative is. In the last few

:21:39.:21:45.

weeks we have seen a variety of alternatives springing forward, the

:21:45.:21:50.

only thing the anti-independence campaign are agreed on is that

:21:50.:21:56.

they're against independence, but they disagree on everything else.

:21:56.:22:02.

Many people in Scotland just think you are frightened, because you

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think you will lose if you have the referendum now. Many people, not

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just in Scotland... You are. They told me there would not be a

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Scottish Parliament, and there is, then they told me there would not

:22:17.:22:25.

be an SNP government. I think we will win the referendum, and I am

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so confident about that that shortly after the local elections

:22:29.:22:36.

in May, the yes campaign will be launched, and that campaign will

:22:36.:22:42.

not just be the Scottish National Party, it will be a broad-based

:22:42.:22:48.

campaign, with job creators, unions, a variety of people coming together

:22:48.:22:52.

to enunciate the case for independence. That positive

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approach is going to contrast markedly with opponents who are

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united only in their negativity. Thank you very much. This week, the

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cost of petrol will reach record highs, 137.4 pence for a litre of

:23:08.:23:15.

unleaded. The increasing strain on motorists is fuelling a campaign to

:23:15.:23:18.

urge George Osborne to cut fuel duty in his budget this month. So

:23:18.:23:24.

far, the signs are that he will not heed their calls, but could any cat

:23:24.:23:28.

actually bring in more money to the Treasury? We have been looking at

:23:28.:23:38.
:23:38.:23:52.

These days, petrol bills are feeling anything but mini. This man

:23:52.:23:57.

runs tours around London, and fuel prices weigh heavily on his mind.

:23:57.:24:01.

Seriously, it is getting pretty scary these days. It is a new

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record, at �1.42, it is extortion it, and I just hope and pray that

:24:06.:24:09.

it has not got any more. Petrol and diesel prices have gone in that

:24:09.:24:13.

direction for lots of reasons - instability in the Middle East, the

:24:13.:24:17.

value of the pound, but also because of tax. The Government

:24:17.:24:23.

takes duty and VAT worth 60p in every pound spent at the pumps, the

:24:23.:24:26.

highest proportion in the EU. The coalition are trying to do

:24:26.:24:30.

something about it. They have postponed two planned increases in

:24:30.:24:39.

duty, they have introduced a fuel stabiliser, and this week, people

:24:39.:24:43.

in remote areas are getting a discount on their fuel duty. Drive

:24:43.:24:50.

on. And with budget fever revving up at Westminster, some are

:24:50.:24:58.

lobbying the Chancellor to do even more. I am asking the Government to

:24:58.:25:01.

forgo the August tax rise and look seriously at cutting fuel taxes in

:25:01.:25:08.

the long term. The latest stats this week show that a cut of only

:25:08.:25:11.

Melaine Walker in fuel duty would create 180,000 jobs. We desperately

:25:11.:25:18.

need those jobs.. But the problem is, that would require the

:25:18.:25:27.

Government to pull off a tricky manoeuvre with the public finances.

:25:27.:25:31.

If the Chancellor decides to cut fuel duty, his dabbling with

:25:31.:25:36.

something which in principle brings in �30 billion a year, and any cut

:25:36.:25:39.

will reduce that by several hundreds of millions. So, he has

:25:39.:25:43.

got to be careful, it will potentially make a bit of a dent,

:25:43.:25:52.

although, in the content -- context of a total tax take of between �500

:25:52.:25:56.

billion and �600 billion, there is an argument that he could take a

:25:56.:26:03.

cut of a couple of pence per litre. The Chancellor is facing demands

:26:03.:26:10.

from a load more people than you could fit into a Mini. That was our

:26:11.:26:15.

whole production team! So, should the Chancellor cut fuel duty in his

:26:15.:26:25.
:26:25.:26:30.

Budget? Joining me now, Quentin Willson, from FairFuelUK, and Sian

:26:30.:26:38.

Berry. This is actually affecting the economy, and people. The point

:26:38.:26:44.

is that if you cut duty by 2.5p, the CBI report says it will be

:26:44.:26:51.

fiscally neutral for the Treasury, because you create jobs. That money

:26:51.:26:54.

is going back into the economy, things like clothing, food,

:26:54.:26:58.

household goods, leisure and entertainment. All of these things

:26:58.:27:02.

are being constrained because people cannot afford... But surely

:27:02.:27:07.

you're simply moving the money from fuel duty to people spending it on

:27:07.:27:12.

other things. Yes, but money which is not spent on higher fuel duty

:27:12.:27:15.

will be spent in the wider economy. What could be wrong with that, no

:27:15.:27:20.

loss in revenue, he says? If you're going to spend money on something

:27:20.:27:25.

like this, then the main thing is getting people out of car

:27:25.:27:27.

dependency. We know what the markets have done to the petrol

:27:28.:27:32.

price recently. The AA have called them greedy speculators. Any cut

:27:32.:27:36.

will be swallowed up by speculation like that. We need to be spending

:27:36.:27:44.

money on reversing bus cuts, rail fares. Some people this week have

:27:44.:27:48.

been talking about transport poverty, where you have not got a

:27:48.:27:52.

car and your bus services have been cut. That's the kind of thing we

:27:52.:27:57.

need to be spending money on. should we have to pay more than our

:27:57.:28:02.

European neighbours for petrol? would accept a delay in the further

:28:02.:28:06.

increase, because of what the markets have done, but a cat is

:28:06.:28:09.

effectively government spending, and government spending needs to be

:28:09.:28:14.

spent instead on getting us out of the car. It will give people a

:28:14.:28:22.

relief socially. The truth is that since 1997, the overall cost of

:28:22.:28:25.

motoring, unlike public transport, which has gone through the roof,

:28:25.:28:31.

has fallen by 7%, so why more for motorists? Tell that to the people

:28:31.:28:36.

who write to me to say, I have had to give up my job because I am

:28:36.:28:40.

spending more on fuel than I am spending on rent every month. It is

:28:40.:28:43.

a deeply important social issue, which is emasculating the economy

:28:43.:28:49.

and stopping people going to work. Half of all families in actual

:28:49.:28:53.

poverty do not have a car at all. These cuts are having a terrible

:28:53.:28:58.

effect on young people looking for jobs, trying to get into education.

:28:58.:29:01.

Those are social problems which could be solved by further

:29:01.:29:07.

investment in bus services. I am saying we should do both of them,

:29:07.:29:16.

we have got to develop a transport system, that is something we need,

:29:16.:29:22.

but it will take 10 years. But a cut in fuel duty would help lots of

:29:22.:29:30.

ordinary families, what's wrong with that? Most households are

:29:30.:29:34.

single car households, most of the people in the household do not rely

:29:34.:29:41.

on the car, they rely on public transport. 70% of councils have cut

:29:41.:29:46.

bus services this year. It would only cost tens of millions to

:29:46.:29:50.

reverse those cuts to the bus services. But you want a cut in

:29:50.:29:58.

duty at a time, over the years, we used to see tables about fuel duty,

:29:58.:30:05.

and we see that now it is lower in real terms than it was in 2009.

:30:05.:30:09.

of every litre you put into your card goes in tax, the highest in

:30:09.:30:17.

the eurozone. This is not right. does make business more expensive,

:30:17.:30:21.

doesn't it, including heavy vehicles? Yes, and fuel prices are

:30:21.:30:26.

only going to go up in the future. In the long term we need to reduce

:30:26.:30:33.

our reliance on oil, not encourage it by doing this. How would you pay

:30:33.:30:38.

for it - there is no money, so you will have to find the money?

:30:38.:30:45.

would increase economic activity, that's the way we do it. By

:30:45.:30:55.
:30:55.:31:01.

reducing duty, you're increasing That was fun. It is midday and you

:31:01.:31:05.

are watching the Sunday Politics, coming up in 20 minutes. I will

:31:05.:31:10.

look at the week ahead with our political panel. Until then, the

:31:10.:31:20.
:31:20.:31:24.

Welcome to the land a part of Sunday Politics where we will be

:31:24.:31:29.

talking about hacking, horses and have a head-to-head between Boris

:31:29.:31:33.

Johnson's to rival biographers. They will be here shortly. A little

:31:33.:31:37.

later, why some MPs are saying one Christian charity should not be

:31:37.:31:42.

allowed to pay for parliamentary in terms because of their "extremist

:31:42.:31:49.

views". To pick over the entrails of the week are Bob Neill and Heidi

:31:49.:31:54.

Alexander, the Labour MP for Lewisham East. She also has a

:31:54.:31:58.

shadow post in the Department of Environment and rural affairs. We

:31:58.:32:02.

know the Olympics are a showcase for the capital, but can they be a

:32:02.:32:09.

showcase for protest, public sector cuts, as suggested by the leader of

:32:09.:32:13.

the country's biggest union? Not in the way been proposed by Len

:32:13.:32:18.

McCluskey. It was disgraceful to say that the Olympics, which is a

:32:18.:32:24.

showcase for the UK is a legitimate target for, his phrase, civil

:32:24.:32:27.

disobedience. We have industrial relations issues, and there are

:32:27.:32:32.

other ways to pursue it, but that was a throwback to the bad old days

:32:32.:32:37.

and a naked bit of self-interest. Whatever disputes you might have,

:32:37.:32:40.

the last thing you do start trashing your country in front of

:32:40.:32:44.

half of the world, and potentially encouraging people to spoil what

:32:44.:32:49.

should be a fantastic event for folks and families across the

:32:49.:32:54.

country and the world. He is only suggesting protest, not breaking

:32:54.:32:57.

the law. Should and visitors to the country get a rounded and full

:32:57.:33:04.

impression of what people are thinking? -- shouldn't visitors.

:33:04.:33:08.

This is the point in the year when the eyes are on London, and it

:33:08.:33:12.

should be a showcase for the capital. I disagree with what Len

:33:12.:33:16.

McCluskey said. I don't think we should be disrupting the Games. I

:33:16.:33:21.

think the problem here is that the unions and a lot of public sector

:33:21.:33:25.

workers are very fed-up and frustrated with the way the

:33:25.:33:29.

negotiations, the so-called negotiations have gone on on public

:33:29.:33:33.

sector pensions and I think there is frustration there, but I don't

:33:33.:33:38.

think they would be helping their own course, because I think they

:33:38.:33:43.

would be losing public support were they to disrupt the Games. With the

:33:43.:33:48.

mayoral election only weeks away, it is no coincidence that

:33:48.:33:52.

publishers have seen their opportunity. Not one, but two

:33:52.:33:55.

updated biographies of Boris Johnson are about to be published.

:33:55.:33:58.

They assess his record and shed fresh light on what was happening

:33:58.:34:01.

behind the scenes during what many feel was his Hurricane Katrina

:34:01.:34:07.

moment, the summer riots. My house is on fire, my neighbour's house is

:34:07.:34:15.

on fire. It is bedlam on the streets. Both authors say the riots

:34:15.:34:19.

took Boris Johnson by surprise, but according to one biographer,

:34:19.:34:22.

Downing Street sources said they found it incredible that the mayor

:34:22.:34:27.

did not return from holiday until the 4th day of disturbances. The

:34:27.:34:30.

sources have maintained that the mayor did not understand gravity of

:34:30.:34:33.

the situation and that his lack of empathy with local people in front

:34:33.:34:37.

of the cameras dismayed the Tory leadership will watching. However,

:34:37.:34:41.

the following morning he would appear on the radio and seemed to

:34:41.:34:45.

criticise the Government's plans to cut police numbers. I think this is

:34:45.:34:50.

not a time to think about making substantial cuts in police numbers.

:34:50.:34:57.

This announcement put a huge strain on his relationship with the Prime

:34:57.:35:00.

Minister. As the capital came to terms with the destruction, its

:35:00.:35:07.

national and local government were I am joined by Andrew Jameson and

:35:07.:35:12.

Sonia Purnell who both have updated biography is coming out. How did

:35:12.:35:16.

the summer riots and his handling of them define Boris Johnson? You

:35:16.:35:20.

say he flunked it. Why? I think that was his test as to what he

:35:20.:35:24.

would be like is a national leader. He was put under a lot of pressure,

:35:24.:35:28.

and people needed empathy, leadership and reassurance and

:35:28.:35:32.

guidance. The police were being criticised and were not able to

:35:32.:35:35.

contain the violence and he was out of the country for quite a long

:35:35.:35:39.

time. When he did come back, he didn't quite strike the right note

:35:39.:35:43.

and looked slightly smirking in interviews in Clapham with a member

:35:43.:35:47.

of the public who was trying to tell him how bad things were for

:35:47.:35:53.

her. I think he failed that particular test. Do you agree was

:35:53.:35:56.

his Hurricane Katrina moment? Should he have come back soon and

:35:56.:36:00.

taken a different approach? Here was his lowest point. He was stuck

:36:00.:36:05.

in a Winnebago van with his wife and children, and everybody was

:36:05.:36:09.

wrong-footed by this. There was not a single person who was not

:36:09.:36:15.

astonished. Did he take too long to come back though? I don't think so.

:36:15.:36:20.

It could have been one night quicker. When he came back and came

:36:20.:36:24.

to Clapham, did he get the mood right? No, he got it wrong, but he

:36:24.:36:28.

recovered by picking up that this was not the time people wanted less

:36:28.:36:33.

money spent on the police, so he tore up the policy on that and to

:36:33.:36:36.

the Normans annoyance of Downing Street he went on the Today

:36:36.:36:41.

programme and said he should not be so cutting money for the police.

:36:41.:36:44.

Cameron was furious with him, but in that respect he did respond to

:36:44.:36:48.

public opinion. You found he had had dinner the night before we

:36:48.:36:52.

David Cameron and did not mention he would go on to his favourite BBC

:36:52.:36:55.

programme and attack the Government's cuts to policing.

:36:55.:36:59.

behaved like the mayor of London and represented London. He is not

:36:59.:37:04.

there to represent Cameron. Did you think he was right? What was the

:37:04.:37:07.

response to his turning on the government and saying there he

:37:07.:37:10.

needs more money for the police when he had spent three years

:37:10.:37:14.

saying he could cope with the cuts? That was the biggest rift they had

:37:14.:37:19.

ever been between Boris and Cameron. George Osborne was sent to deliver

:37:19.:37:24.

a severe dressing down. Downing Street people said he did really

:37:24.:37:29.

messed up and they were very cross. He would have been a bigger mess

:37:29.:37:33.

not to do it, frankly. But what did they feel about it? One of them

:37:33.:37:38.

described him as a selfish showman? I am not sure at this hour of the

:37:38.:37:43.

day I can use the actual language. It tends to be the second division

:37:43.:37:47.

people who get very cross with Forest. Cameron and Osborne,

:37:47.:37:51.

although crosser the time, they are serious enough to know that if he

:37:51.:37:55.

does not stand up for London Boris doesn't have a hope. With the

:37:55.:38:01.

election coming up, can he say that this is a good record? I am

:38:01.:38:03.

surprised how weak his record is. He is obviously a talented and

:38:03.:38:07.

clever person but it strikes me they're not big achievement for him

:38:07.:38:11.

to talk about. We can talk about the bikes, which are fun, but they

:38:11.:38:15.

cost a lot of money, about �100 million which is a lot of money

:38:15.:38:19.

during a time of austerity. We have the new buses, but only one at the

:38:19.:38:23.

moment. That cost �1 million. I happen to like it very much that

:38:23.:38:28.

it's questionable whether that is a priority. He got rid of the head of

:38:28.:38:30.

the Metropolitan Police but his successor only lasted a couple of

:38:30.:38:36.

years. You are taking on balance a negative view. Do you accept that

:38:36.:38:41.

you? Has he come up to the mark? There were fantastically low

:38:41.:38:46.

expectations. Do year-old Polly Toynbee said he would be exposed as

:38:46.:38:52.

a clown and a liar. Did he come up to your mark? Yes, because he was

:38:52.:38:58.

so determined not to gratify critics on the right and left. He

:38:58.:39:02.

actually took it very seriously and got a man called Simon Milton in to

:39:02.:39:06.

run things and he did that very well. A quick sense from both of

:39:06.:39:10.

you, has there been a certain amount of complacency? The polls

:39:10.:39:14.

look closer than we thought. Do you think he will win? It is impossible

:39:14.:39:19.

to say but I think it is good that fight has become tougher. That will

:39:19.:39:24.

show Tories in other places like Bromley, that will bring them out.

:39:24.:39:27.

I am hoping the argument goes to policy rather than personality. The

:39:27.:39:32.

more it goes on to policy, the more trouble he is in. The one quick

:39:32.:39:37.

word from you to. Bob Neal, just back on the riots, was the selfish

:39:37.:39:40.

in turning on the government about not providing enough money for the

:39:40.:39:45.

police when he accepted the settlement for policing? I think

:39:45.:39:49.

Andrew makes a fair point. In a mature world of devolution you are

:39:49.:39:53.

going to have different nuances from those of us who have a job to

:39:53.:39:57.

do in central government to contain public spending and the mayor of a

:39:57.:40:00.

city like London who has to fight his corner. I am relaxed about it.

:40:00.:40:04.

I think it was a creation of artificial divisions, because the

:40:04.:40:08.

Livingstone camp has little to go on. If it comes to records, Boris

:40:08.:40:15.

is the man who keeps his word. Ken has repeatedly broken his. Forest

:40:15.:40:19.

should have been standing up for London before the riots -- Forest

:40:19.:40:22.

should have been. People in my community were coming up to me and

:40:23.:40:26.

saying they were concerned about cuts to police as they were seen

:40:26.:40:31.

crime, burglary, robbery, serious violence rising. We need police on

:40:31.:40:35.

our streets. It is simply not good enough for Boris Johnson to play

:40:35.:40:39.

catch-up at the end of his four years. Thank you very much indeed.

:40:39.:40:43.

We will have to see what the next chapter is.

:40:43.:40:48.

The air have been calls from some MPs to stop one Christian charity

:40:48.:40:52.

providing paid in turns to worker members in parliament. The

:40:52.:40:56.

organisation Care has strong views on homosexuality. One MP has

:40:56.:41:00.

described them as extremist, but another London Tory MP has said he

:41:00.:41:08.

is happy to have a Care in turn These are the London offices of

:41:08.:41:12.

Care, in Westminster. From the outside there is little clue as to

:41:12.:41:19.

what they are about. Their website provides a bit more information.

:41:19.:41:23.

write speeches for parliamentarians, make our supporters aware of when

:41:23.:41:26.

key votes are happening and we asked them to write into

:41:26.:41:30.

parliamentarians. Along with campaigning on Christine issues,

:41:30.:41:35.

Care pays for interns to work in NP offices a campaign which has become

:41:35.:41:41.

controversial in recent weeks -- M P offices. In 2009, the sponsor the

:41:41.:41:45.

event in central London discussing therapeutic approaches to same-sex

:41:45.:41:49.

attraction, which some describe as trying to change gay people's

:41:49.:41:52.

sexuality. This greatly concerned Philip Dawson, who, amongst other

:41:53.:41:57.

things, is the treasurer of the Enfield Conservative Party. Their

:41:57.:42:02.

MP had an intern from Care. Royal College of psychic --

:42:02.:42:06.

psychiatrists say to suggest that there is a treatment for

:42:06.:42:10.

homosexuality allows prejudice to flourish. So our question on

:42:10.:42:14.

whether a registered charity should be giving its support through co-

:42:14.:42:18.

sponsoring an event could be argued that they are in effect creating an

:42:18.:42:22.

environment in which prejudice and discrimination flourish. Indeed,

:42:22.:42:27.

one openly gay MP feels Care directly discriminated against him.

:42:27.:42:34.

And in turn would help to ben Bradshaw with his 1997 -- when his

:42:34.:42:40.

1997 campaign. Very late in the day, the in turn was told, and I do not

:42:40.:42:43.

know she was given an explanation, that you could not work for ben

:42:43.:42:49.

Bradshaw. I think the reasons that Care gave to me were pretty clear.

:42:49.:42:53.

You believe it is because you are gay. Absolutely no doubt about it.

:42:53.:42:57.

It caused quite a for Rory at the time. Since the beginning of the

:42:57.:43:01.

time there has been a campaign to stop MPs taking interns from Care.

:43:01.:43:06.

Three London MPs have had one in the last year, and one of them,

:43:06.:43:10.

David Lammy, says he wouldn't take on again. Another, Paul Burstow

:43:10.:43:16.

said he had no comment to make. But the third, David Burrows, whose

:43:16.:43:19.

interne worked in the same room, says he fully intends to take on

:43:19.:43:24.

again. If you are going to judge the character of Care and then make

:43:24.:43:28.

dishes and on the intern you have to look at what they have done over

:43:28.:43:32.

the years. They have made a great contribution to public life. They

:43:32.:43:38.

have played a key role in trying to encourage people opting into the

:43:38.:43:41.

human trafficking direction -- directed, focusing on the child

:43:41.:43:46.

victims of human trafficking and also the areas around pornography

:43:46.:43:49.

and internet service providers. Regardless of their agenda, does

:43:49.:43:52.

the fact that they are paying the in turns to work in Parliament mean

:43:52.:43:58.

they will have divided loyalties -- in terms. Ben Bradshaw think so.

:43:58.:44:05.

think it is difficult for the young people concerned. In my case,

:44:05.:44:09.

although this young woman desperately wanted to work for me.

:44:09.:44:13.

We knew each other, we were friends and we had helped each other on the

:44:13.:44:20.

young people are put under coercion in that respect, regardless of what

:44:20.:44:30.
:44:30.:44:41.

they themselves might believe. We can go up to Salford and speak

:44:41.:44:46.

to Hazel Blears, who's running a programme on this matter. Can I ask

:44:46.:44:50.

you first whether you think there should be or can be controls on the

:44:50.:44:57.

suitability or otherwise of interns in the House of Commons? I do not

:44:57.:45:00.

personally know the organisation Care. But there is always a danger

:45:00.:45:03.

that if a particular group are paying somebody to work in

:45:03.:45:13.

Parliament, there could be a public perception of having an agenda. The

:45:13.:45:17.

organisation which I am promoting makes absolutely sure that they are

:45:17.:45:25.

not funding specific interns, that's the problem, I think.

:45:25.:45:31.

what about people who might not agree with their views? You can be

:45:31.:45:35.

sensitive when you're interviewing people, you can ask them your views,

:45:35.:45:40.

you do not always have to be 100% in agreement with the person you're

:45:40.:45:46.

working for. But a general sympathy for the views of the person you're

:45:46.:45:50.

going to be working closely with, particularly in politics, I think

:45:50.:46:00.
:46:00.:46:03.

is important. What are you trying to do about the barriers? Well,

:46:03.:46:07.

there are huge barriers. A lot of the internships are not paid, so it

:46:07.:46:12.

is virtually are -- virtually impossible if you have not got

:46:12.:46:15.

money behind you. If you live outside London, it is very

:46:15.:46:20.

expensive. The scheme that I have set up pays people a proper living

:46:20.:46:25.

wage, it gives people help with housing, the people come and work

:46:25.:46:29.

with their MP for four days a week, but they then get a full training

:46:29.:46:33.

programme about the workings of the House of Commons, it is a very

:46:33.:46:37.

well-designed scheme, it is cross- party, backed by the Speaker, who

:46:37.:46:42.

has given us tremendous support, and our first 10 people came to

:46:42.:46:48.

work in November. They are an inspirational group of people, not

:46:48.:46:55.

all Young, either. Some have been to university, some haven't.

:46:56.:46:59.

you doing your bit to bring on people who might not naturally see

:46:59.:47:06.

a path into Parliament? I do have in terms from time to time, I know

:47:06.:47:13.

all about Hazel Blears' scheme. I think there is room for other

:47:13.:47:16.

organisations as well. I don't think you should be too purist

:47:16.:47:21.

about whether people pay or not, I want people to be able to do

:47:21.:47:23.

internships from as wide a background as possible, that's the

:47:23.:47:29.

most important thing. Is there a slight unease if people are

:47:29.:47:35.

promoting organisations with certain views? There's two things,

:47:35.:47:38.

I do not think we should be having a witch hunt about view was that

:47:38.:47:45.

might not be those of the majority. People are entitled to their views.

:47:45.:47:49.

Hazel Blears is quite right, if you're going to work so -- work

:47:49.:47:55.

with somebody in parliament, you have to be roughly on the same page.

:47:55.:48:00.

I have concerns about unpaid internships. What I do is to take a

:48:00.:48:05.

large number of work experience students, and we have shadowing

:48:05.:48:09.

scheme, where somebody gets to literally be with me for the whole

:48:09.:48:14.

day, to see what my job is. I think the problem with the internships

:48:14.:48:19.

paid for by a third party is that it starts to blur the line between

:48:19.:48:23.

what is lobbying activity and what is the work that needs to go on in

:48:23.:48:31.

an MP's office. A final word to you, Hazel Blears. If you have unpaid

:48:31.:48:34.

internships, it means that usually it is only people with financial

:48:34.:48:39.

support who can do it. I think we need many more people in Parliament

:48:39.:48:44.

who come from a variety of backgrounds, and that includes MPs.

:48:44.:48:53.

There's far too many who have just taken that special adviser route.

:48:53.:48:59.

What else has been happening in London this week? Here's a flavour

:48:59.:49:08.

in 60 seconds. The first of the much-trumpeted new buses hit the

:49:08.:49:14.

streets, and immediately malfunctioned. At the Leveson

:49:14.:49:21.

Inquiry, the former Assistant Commissioner of the Met rejected

:49:21.:49:26.

suggestions that drinking champagne with the crime editor at the News

:49:26.:49:29.

of the World had influenced his thinking. It was revealed that

:49:29.:49:35.

Rebekah Brooks had been lent a horse by the Metropolitan Police.

:49:35.:49:42.

Two years later, the horse was returned. The Mayor's

:49:42.:49:45.

rehabilitation programme at Feltham young offenders' institute will not

:49:45.:49:53.

continue when the money runs out after the mayoral election. The

:49:53.:50:00.

results of the scheme will not be known until the summer. Meanwhile,

:50:01.:50:08.

the new bus continued to falter under the weight of expectations.

:50:08.:50:15.

I'm sure neither of you have got to ride a retired Met Police horse.

:50:15.:50:21.

But are you pleased with what the inquiry is doing? I think we do

:50:21.:50:24.

need to have some light shed on this, it is a matter of concern

:50:24.:50:30.

across the board. Leveson is a respected High Court judge, a

:50:30.:50:34.

member of the Court of Appeal, let's see what comes out, let's not

:50:34.:50:38.

prejudge anything. There is still a lot more to be done. Are you

:50:38.:50:42.

pleased that somehow he is redressing the balance with regard

:50:42.:50:46.

to tabloid newspapers? I think Leveson has really exposed some of

:50:46.:50:51.

the dirty dealings that were going on, whether it's tabloids, members

:50:51.:50:57.

of the police force, the nature and the extent of what was happening is

:50:57.:51:02.

quite alarming, really. I would hope to see quite a hard-hitting

:51:03.:51:07.

report coming out. Thank you very much for being with me today. With

:51:07.:51:17.
:51:17.:51:20.

Alex Salmond told me that a Yes campaign for Scottish independence

:51:20.:51:25.

will begin after the local elections in May. That could mean

:51:25.:51:31.

one ferry, very, very long campaign. And we understand that Steve Hilton

:51:31.:51:34.

will be leaving Downing Street, to go to California. Let's discuss all

:51:34.:51:44.

of that, and more now. Let's begin with the question which Norman Lamb

:51:44.:51:48.

would not answer which is, are they are the makings of a deal, do you

:51:48.:51:52.

sense, between the Liberal Democrats and the Tories on

:51:52.:51:56.

agreeing to cut the top rate at some stage, if we have higher

:51:56.:52:01.

property tax on people with big houses? I thought it was a bit

:52:01.:52:05.

feeble of Norman Lamb to be so evasive about this. If you speak to

:52:05.:52:10.

any other Lib Dem, they were quite openly say, yes, they are ready to

:52:10.:52:15.

move on 50p, they are not ideologically wedded to it, which I

:52:15.:52:18.

think is an interesting position. It also puts David Cameron in a

:52:18.:52:23.

difficult position, because the onus is now on him to explain to

:52:23.:52:27.

his backbenchers and the business community why sticking with the 50p

:52:27.:52:31.

is preferable to some kind of wealth tax on property. Will the

:52:31.:52:37.

Tories by this? It is important to remember, the opposition to getting

:52:37.:52:41.

rid of the 50p rate does not just come from within government, it

:52:41.:52:48.

comes from public opinion. My view on the Budget is that you will not

:52:48.:52:51.

really see anything radical in the way of council tax or a mansion tax

:52:51.:53:00.

or 50p, it might be a raid on pensions, in respect of higher rate

:53:00.:53:07.

taxpayers. How would Labour react, do you think, to a deal like that?

:53:07.:53:12.

They would not like the cut in the 50p, but they would quite like

:53:12.:53:17.

wealthy folk pay more for their homes? I think this is a really

:53:18.:53:21.

interesting one. Labour will have to make a decision about what to

:53:21.:53:25.

support. It cannot be the only party which comes out against a

:53:25.:53:31.

wealth tax. But I think what we're seeing is, politics seems to be

:53:31.:53:35.

determined by what works out best in the backroom deals between the

:53:35.:53:39.

coalition partners, rather than what is just and fair for the

:53:39.:53:45.

country. Welcome to coalition politics. But where is the

:53:45.:53:49.

consistency? How do we know what this government stands for, if it

:53:49.:53:54.

is constantly about the balance of power? In my interview with Alex

:53:54.:53:59.

Salmond, I teased him about his new friendship with Rupert Murdoch -

:53:59.:54:02.

what do you make of it, he's really the only major politician who will

:54:02.:54:06.

be seen in public with Rupert Murdoch, whereas a year ago, they

:54:06.:54:11.

were falling over themselves to be seen in public with him... Yes,

:54:11.:54:16.

Rupert Murdoch has a thing for anti-establishment Scots. He was

:54:16.:54:21.

closer to Gordon Brown than you might have assumed. But clearly,

:54:21.:54:25.

there is something going on here. Rupert Murdoch was believe there is

:54:25.:54:28.

a strategic gain for him in the possibility of an independent

:54:28.:54:32.

Scotland, but what exactly that is, whether that is a lower corporation

:54:32.:54:37.

tax rate for possibly basing his company there, or whether it is a

:54:37.:54:40.

lighter approach to press regulation, I do not know. But he

:54:40.:54:44.

must see something in his relationship. I don't think there

:54:44.:54:49.

is any doubt about that. Mr Murdoch has never liked Britain, and he

:54:49.:54:53.

likes it even less now, after the establishment has had its revenge

:54:53.:54:57.

on him, so he would like to break up the United Kingdom, no question

:54:57.:55:01.

about it. Alex Salmond would love the Scottish Sun to support the

:55:01.:55:07.

case for independence, the biggest- selling newspaper. But I think,

:55:07.:55:11.

when Mr Murdoch saw Alex Salmond, Mr Salmond would not confirm this,

:55:11.:55:17.

but I am reading between the lines, Mr Murdoch indicated that if

:55:17.:55:22.

corporation tax in an independent Scotland was cut, he could be talk

:55:22.:55:27.

into moving BSkyB to Edinburgh. That leads into a much bigger issue

:55:27.:55:30.

about England is going to be competing with Scotland for

:55:30.:55:33.

businesses more generally. The other thing which I thought was

:55:33.:55:37.

really interesting about this is that if you look at the pro-union

:55:37.:55:42.

Ks, the problem that they have is that it is very rational and

:55:42.:55:46.

academic, when you look at these arguments, but with your interview

:55:46.:55:50.

with Alex Salmond, you were getting the sense that this is a community

:55:50.:55:54.

based, populist, emotional campaign. If you have something like the Sun

:55:54.:55:59.

coming out and backing them as well, then you're forcing the other side

:55:59.:56:05.

to look more like the rational, cold-hearted... We should point out

:56:05.:56:08.

that Sky already employs about 7,000 people in Scotland, because

:56:08.:56:16.

that is where the call centres are. What a coup that would be. But

:56:16.:56:20.

first of all, I do not think that Alex Salmond is such a bogeyman

:56:20.:56:24.

north of the border as he is here, and secondly, it does him no harm

:56:24.:56:28.

to be seen with the billionaire businessman. It helps his

:56:28.:56:30.

credibility in the business community. He used to mix with

:56:30.:56:36.

Donald Trump, but he has now fallen out with him, so we shall see.

:56:36.:56:40.

Moving on now, what is the significance of the departure of

:56:40.:56:47.

Steve Hilton? Huge. I think there are plenty of people in politics

:56:47.:56:50.

who are good at pure politics, and plenty who are good at

:56:50.:56:54.

administration, but there are very few who have a vision about what

:56:54.:56:58.

the country should look like, and what you should do with power, and

:56:58.:57:02.

Steve Hilton was one of those. Without him, there is a danger that

:57:02.:57:06.

the Government becomes a bit too tactical, a bit too focused on

:57:06.:57:10.

retaining power, and worried about winning the next election, rather

:57:10.:57:14.

than doing something with the country while they are in pole.

:57:14.:57:18.

fear it is that the Government looks like a deflated balloon.

:57:18.:57:22.

Steve Hilton was there to provide the bigger picture, and it is

:57:22.:57:25.

concerning that the reason that he is leaving his because he thinks

:57:25.:57:30.

the Government has one out of steam. So, effectively, we have got three

:57:30.:57:37.

years of frankly not much happening. I think we should all take a

:57:37.:57:41.

sabbatical for three years. It goes back to what you were saying about

:57:41.:57:44.

the coalition, from the Tory papers about the Government running out of

:57:44.:57:51.

steam, and Steve Hilton's departure making it worse. It is interesting,

:57:51.:57:54.

because this government has been incredibly reforming, but the

:57:54.:57:58.

reform has not always been popular, when we look at the NHS or schools,

:57:58.:58:01.

it is not like people are clamouring for these things. But

:58:01.:58:05.

the good thing that reform has provided is a distraction from what

:58:05.:58:08.

would otherwise be a politics of austerity, which is not actually

:58:08.:58:12.

working out very well. When you lose the person who's providing

:58:12.:58:16.

that positive vision, that agenda of what you're about, what you are

:58:16.:58:20.

for, as well as what you're cutting, then it could leave you in a hard

:58:20.:58:26.

place. The big myth about Steve Hilton is that he is some kind of

:58:26.:58:35.

closet leftie, but he is not. He is a Thatcherite. How can you do that,

:58:35.:58:42.

while you are in London? This allows me to officially deny that I

:58:42.:58:48.

am Steve Hilton's guru. But I think I know who it is! That's it for

:58:48.:58:52.

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