:36:43. > :36:51.the Chancellor prepares to answer bail -- unveil his spending plans,
:36:51. > :36:55.we ask if it is time to forget about upgrading the A1. And our local
:36:55. > :37:02.museums are under pressure. Will they be forced to introduce charges
:37:02. > :37:07.to survive? Lots to talk about with my guests.
:37:07. > :37:13.Let's start with the men and women who sought and deliver our letters.
:37:13. > :37:23.Royal mail is to be privatised but this week, postal workers voted to
:37:23. > :37:24.
:37:24. > :37:30.fight it, despite the offer of free shares. I shuddered a worker
:37:30. > :37:35.recently and it was incredibly hard work. Did it give you an insight
:37:35. > :37:38.into whether the government is right or wrong on this? It did. I
:37:38. > :37:42.discussed the changes with over the last year. We've had a new chief
:37:42. > :37:45.executive who have made a great difference. The Royal mail is making
:37:45. > :37:50.a great difference. The Royal mail is making profits now. Why would we
:37:50. > :37:54.want to take this act of the private sector? It was a privatisation too
:37:54. > :38:00.far for Margaret Thatcher, to put it into the private sector. Why would
:38:00. > :38:07.we want to take this out of the public sector? The workers could
:38:07. > :38:12.have shares. Only 10% of the shares are going to the workers. I think
:38:12. > :38:18.that says something about how they value the workers. It also does say
:38:19. > :38:23.that the fact 96% voted against it, a bribe of �1500 is not enough to
:38:23. > :38:30.make them give up their investment in the public service ethos of the
:38:30. > :38:34.Royal mail, which we want to maintain. This is taking a risk with
:38:34. > :38:38.a public service which has been in public hands for 450 years, just to
:38:39. > :38:42.raise some money for the Chancellor. The Royal mail needs to be
:38:42. > :38:46.independent of the government if it is going to have the finance for the
:38:46. > :38:49.future. There is a guarantee that it is still going to be able to deliver
:38:49. > :38:56.a letter anywhere in the country for the same price. To be able to do
:38:57. > :39:03.that, it needs the private capital behind it. The Royal mail has become
:39:03. > :39:06.more profitable in recent years and that is certainly true. It is
:39:06. > :39:11.because it is on a journey to privatisation. The government has
:39:11. > :39:17.also helped by taking the pensions of the Royal mail which is -- was
:39:17. > :39:21.costing a lot. We need to go further.
:39:21. > :39:26.We will come back and this another time. Let's move on to the top
:39:26. > :39:31.story. The government and its attempt to try and head off a
:39:31. > :39:38.closure threat to the National Railway Museum in York. Ministers
:39:38. > :39:41.are thought to have reached a deal to keep museums open, albeit with
:39:41. > :39:46.significant budget cuts. But museums across the region are facing a
:39:46. > :39:50.financial squeeze which may force admonition charges. -- admission
:39:50. > :39:57.charges. Built in the town where passenger
:39:58. > :40:02.railway began, locomotion is a museum with a big appeal to railway
:40:02. > :40:07.enthusiasts and families. This offshoot of the National Railway
:40:07. > :40:12.Museum opened ten years ago. But its future and that of its big sister in
:40:12. > :40:17.York had been placed under threat because of funding cuts. This week,
:40:17. > :40:22.after protests from locals and MPs, a deal was struck with ministers.
:40:22. > :40:28.Both Railway museums are expected to stay open but they will face cuts of
:40:28. > :40:33.at least 5%. So is the local MP satisfied that it is going to stay
:40:33. > :40:37.open in the long term? Not until we find out what is going on. It's not
:40:37. > :40:42.just a question of whether it is open or closed, it's also very
:40:42. > :40:48.important that we maintain free entry. Of course, a 5% cut is a
:40:48. > :40:53.significant that because it comes on top of cuts in previous years. It is
:40:53. > :40:56.one of the National museums and in the case of this one, a third of the
:40:56. > :41:01.visitors are local. Local people are not going to visit several times
:41:01. > :41:07.over if it costs them five quid every time. Free entry is also
:41:07. > :41:17.extremely important. It has been a tough time for regions -- museums
:41:17. > :41:37.
:41:37. > :41:43.showcasing the North East 's private exhibition in science and
:41:44. > :41:50.technology... This boat was the fastest thing on the seven seas.
:41:50. > :41:57.This is one of 13 venues run by Tyne & Wear museums. The cuts have
:41:57. > :42:02.already had an impact here. It might mean making efficiency savings, in
:42:02. > :42:09.some cases we've had to look at opening hours and we will start to
:42:09. > :42:14.charge for some services. We may start to charge for exhibitions or
:42:14. > :42:19.activities. The five councils in Tyne & Wear has long worked together
:42:19. > :42:24.to jointly pay for the museum service. Now, Sunderland Council is
:42:24. > :42:30.pulling out that arrangement and going it alone. The aim is to
:42:30. > :42:40.concentrate what many the council has on ones like this. We want to
:42:40. > :42:40.
:42:40. > :42:43.develop more local all -- locally orientated exhibitions. It really
:42:43. > :42:49.opens it up to the community and allows us to do things in a
:42:50. > :42:53.different way. With little money to go around, museums are battling
:42:53. > :42:57.other sectors like arts and libraries for what resources are
:42:57. > :43:02.available. The question for politicians is, economically and
:43:02. > :43:06.socially, how much value is there in heritage?
:43:06. > :43:13.How can museums best cope with what is a tough economic climate? I'm
:43:13. > :43:18.joined by the president of the Society of antiquaries. The obvious
:43:18. > :43:22.thing to do is to charge but is that the right thing to do? I think it
:43:22. > :43:29.would be a major mistake. There was a strong argument for charging for
:43:29. > :43:33.temporary exhibitions or special activities. I recently acted as a
:43:34. > :43:37.Stewart -- Stewart and it was fascinating to see the number of
:43:37. > :43:42.people to come -- and came in, a wide range of people, would not be
:43:43. > :43:50.able to afford to go on a regular basis. And yet they were getting so
:43:50. > :43:54.much out of their visit. It is cutting opening hours a better
:43:54. > :43:58.solution? That's a difficult one. Our biggest problem in the
:43:58. > :44:01.north-east of England is attempting any of the museums are properly
:44:01. > :44:06.funded already. None of them have a full complement of stuff already.
:44:06. > :44:11.They've been having cuts for year after year. It's very difficult to
:44:11. > :44:17.see exactly where they are going to make any more cuts. You cannot blame
:44:17. > :44:20.councils though. There are choices between schools and museums.
:44:20. > :44:27.cannot blame them but one does have to think about what museums do for
:44:27. > :44:32.the community. In February 2011, there was an economic assessment
:44:32. > :44:38.which showed that for every �1 invested in cultural organisations
:44:39. > :44:44.in Newcastle, �5 was generated. That is serious returns. It's the museums
:44:44. > :44:49.that attract tourists to the area and tourism does play an enormous
:44:49. > :44:59.part of the generation of this area. The government is trying to get more
:44:59. > :45:00.
:45:00. > :45:04.private benefactors to help. I don't know many. It's a problem. We are in
:45:04. > :45:14.a recession. People don't have a lot of spare cash but there are ways of
:45:14. > :45:22.giving money. People don't tend to give of -- give money in their
:45:22. > :45:27.wills. Frankly, museums need the cash. Do you think museums will
:45:27. > :45:37.close? Some of them may have two and that would be very sad for the local
:45:37. > :45:49.
:45:50. > :45:52.The reasoning behind it is Sunderland has three museums in the
:45:52. > :45:57.partnership. There is a feeling that it needs to make more of them, that
:45:58. > :46:05.the museums have a great cultural value but they must bring people
:46:05. > :46:10.into the city for economic reasons as well. Over the past few years,
:46:10. > :46:12.Sunderland hasn't had as much focus on its museums as Newcastle has with
:46:12. > :46:22.the discovery Museum which is a massive attraction in the
:46:22. > :46:28.north-east. Is that something you can understand? I don't think Sunder
:46:28. > :46:35.land was subsidising museums in Newcastle. I'm sad that Sunder land
:46:35. > :46:40.doesn't want to continue to be part of... Every museum has had to
:46:40. > :46:47.respond to cuts in its own way. I regret it. I think we need to
:46:47. > :46:54.support ourselves as a region. It is a decision for Sunderland. Is it
:46:54. > :46:58.short-sighted for Newcastle to cut funding to other museums? I agree
:46:58. > :47:05.with so much of what Lindsay has said about not just money it
:47:05. > :47:08.generates through tourism but also by inspiring young people. Is it
:47:08. > :47:13.naive for the council to say we're not going to fund it any more?
:47:13. > :47:18.is not what the council are saying. When there is �100 million of cuts
:47:18. > :47:24.from government and it has to make to civil -- difficult decisions, and
:47:24. > :47:28.the council did consult on the fairest way of doing it... They've
:47:28. > :47:32.set up in Newcastle of culture fund which isn't the same amount of money
:47:32. > :47:36.as was there before but it will attract more money and it will
:47:36. > :47:42.support our continuing arts and heritage, and also the economic
:47:42. > :47:52.benefits as well. The accusation is that the blame for this lies with
:47:52. > :47:57.the government cuts. We are where we are with the cuts, with all the
:47:57. > :48:04.major political parties. We need to move on and look at choices under
:48:04. > :48:10.the ways of doing things. accusation I'm making is that the
:48:10. > :48:16.government is not valuing this. does value them that there are other
:48:16. > :48:21.competing things. There's the NHS, benefits, defence, transport.
:48:21. > :48:25.is the future for museums? They have to compete with that. Different
:48:25. > :48:28.people will have different priorities. I like going to museums
:48:28. > :48:35.but the people who also pay taxes might not that be bothered and they
:48:35. > :48:38.have to be considered as well. just come -- reject completely
:48:38. > :48:48.decision that the Labour Party agrees with the way in which this
:48:48. > :49:05.
:49:05. > :49:12.for life in Newcastle, that survives without any public funding
:49:12. > :49:17.whatsoever. There are models where it can work. We need a diverse range
:49:17. > :49:20.of museums. The Centre for life is brilliant. It is rather expensive
:49:20. > :49:24.for children and families particularly to go on a regular
:49:24. > :49:29.basis. It has big, blockbuster exhibitions which are great but I
:49:29. > :49:33.remember going to the science Museum in exhibitions park on a regular
:49:33. > :49:36.basis, it was free and inspired me to go into science and engineering.
:49:36. > :49:46.That is what we want for our children. We need to maintain that
:49:46. > :49:49.in these difficult times. We need partners. If the government is
:49:49. > :49:53.serious about private money coming in, why doesn't it make it much
:49:53. > :49:58.easier for people to give it? think they should. That is something
:49:58. > :50:06.we should look at, making it easier for people to donate to museums.
:50:06. > :50:09.breaks? Possibly. To sponsor museums. To have exhibitions, to
:50:09. > :50:14.advertise and to market sooner get new streams of money coming in the
:50:14. > :50:20.museums so we can keep up the very, very valued cultural offer but also
:50:20. > :50:24.that it is financially sustainable. Let's move on to the first woman to
:50:24. > :50:26.run the Northern TUC. There is a new plan to get seven of the biggest
:50:27. > :50:35.councils in the north-east working together. With those and the rest of
:50:35. > :50:41.the week 's political stories, here is David.
:50:41. > :50:48.Seven north-east councils are to work together on boosting economic
:50:48. > :50:54.growth. It will allow councils to have more power over transport and
:50:54. > :50:56.spending. Attempts to save the second
:50:56. > :51:01.Battalion Royal Regiment of Fusiliers have been raised in
:51:01. > :51:03.Parliament by the MP for North Tyneside. What message does the
:51:03. > :51:10.Secretary of state have for the 10,000 north-east and is who signed
:51:10. > :51:13.a position now with Downing Street to save the regiment? We've had to
:51:13. > :51:18.make very difficult decisions in relation to the structure of the
:51:18. > :51:23.army, as we draw down its size to match our ambitions to our budgets.
:51:23. > :51:30.York council has admitted the news football and rugby stadium will not
:51:30. > :51:36.be built on time. The discovery of newts means 2014 will not be met.
:51:36. > :51:41.Finally, the cost of Cumbria hosting the torch relay was revealed. It was
:51:41. > :51:45.just short of �250,000. The government is spending review is
:51:45. > :51:52.published on Wednesday and the counsellor needs to find �11.5
:51:52. > :51:55.billion of cuts. No small task. -- the Chancellor. George Osborne will
:51:55. > :51:59.also announce some spending on infrastructure like roads and
:51:59. > :52:04.railways. I went out to find out what he might be able to get for his
:52:05. > :52:11.money. Welcome to Northumberland is only
:52:11. > :52:16.one dance, quick, quick, slow. Many have made a road safety case for
:52:16. > :52:19.making this a dual carriageway as of this route. Hardy emigres have made
:52:19. > :52:24.fishing equipment since 1872. Proud of their history, it also likes to
:52:24. > :52:27.be proud of the local road network. If you're looking to invest in
:52:27. > :52:31.Northumberland, you would worry about the A1 at the moment. You
:52:31. > :52:39.would worry less if it was a dual carriageway. Tourism would benefit
:52:39. > :52:43.because it would make assets -- access easier. There's a strong
:52:43. > :52:47.economic benefit. Whether it is actually being measured, I wouldn't
:52:47. > :52:50.know. We are an international company. Have difficulty attracting
:52:50. > :52:54.good people from Tyneside because they don't want to get stuck on the
:52:55. > :53:00.A1. But successive governments have done absolutely nothing. How about
:53:00. > :53:05.another option? This is a rail line in County Durham, or what is left of
:53:05. > :53:10.it. It was shut 22 years ago. But it has an unlikely champion who wants
:53:10. > :53:15.it open. He grew up nearby and he couldn't understand why they were no
:53:15. > :53:22.trains. Now, this 17-year-old has started a campaign to get them back.
:53:22. > :53:27.Is this nostalgia? Or economics? reporter couple of years ago said
:53:27. > :53:32.they were going to be 2000 passengers per day using the line.
:53:32. > :53:35.People are needed to run the trains, people needed to man the stations,
:53:36. > :53:42.everything like that, running the local -- when the local signalling
:53:43. > :53:46.as well. The benefits in many ways, jobs massively. So perhaps the
:53:46. > :53:50.government should look elsewhere. The Sage in Gateshead is already a
:53:50. > :53:55.conference venue. But with limits. It is currently missing business
:53:55. > :54:00.because it doesn't have enough space. There is a plan to extend the
:54:00. > :54:03.facilities into the car park. That would attract the next mated 75
:54:03. > :54:09.extra conferences a year, create hundreds of jobs and pump millions
:54:09. > :54:12.of pounds into the local economy. The bill for that, �30 million.
:54:12. > :54:16.Perhaps we need to think beyond bricks and mortar. This business
:54:16. > :54:19.Centre near Sunderland is already generating jobs but operate --
:54:19. > :54:25.offering the best broadband connections. For companies like this
:54:25. > :54:27.one, that is vital. David and Claire now employ five people and are
:54:27. > :54:34.growing fast. They believe investment in Internet
:54:34. > :54:40.infrastructure could pay dividends. If we look 30 years back, we had a
:54:40. > :54:43.really good Manufacturing and natural resources in the north-east.
:54:43. > :54:47.Those are all gone now. We need to replace them with something and I
:54:47. > :54:51.think this is called the technological revolution now. The
:54:51. > :54:59.north-east needs to take advantage of that and make it a great region
:54:59. > :55:02.again. Road, rail, buildings, broadband. No shortage of ideas on
:55:02. > :55:07.how to boost the economy but will any of them strike it lucky in this
:55:07. > :55:11.week 's spending review? Let's assume the Chancellor is
:55:11. > :55:15.feeling generous. If he had to do choose between making a dual
:55:15. > :55:22.carriageway of the A1 or broadband here which would you choose? The
:55:22. > :55:27.Chancellor should give the choice to the local authorities, perhaps this
:55:27. > :55:32.new combined authority, to make it based on economic benefit. There is
:55:32. > :55:36.a good argument for making the A1 a dual carriageway. We have to make
:55:36. > :55:45.sure that the benefits would not also pass to Scotland, which has a
:55:45. > :55:49.much greater investment -- inward investment. But broadband, the
:55:49. > :55:53.current situation is complete chaos and I know businesses in Newcastle
:55:53. > :56:01.who are crying out for faster speeds. I think investing in
:56:01. > :56:05.broadband has got to be a priority. Particularly for small businesses
:56:05. > :56:09.and our regional economy. north-east chamber of commerce
:56:09. > :56:15.believes making a dual carriageway out of the A1 is the number one
:56:15. > :56:19.priority. That will not benefit Sunderland, will it? It is a
:56:19. > :56:24.national project. We have two capital cities that are not united
:56:24. > :56:30.by a motorway. It's important that that happens. What would you choose?
:56:30. > :56:32.I think you need a mixture of both. I agree that we need more local
:56:32. > :56:36.discretion of infrastructure decisions but I think superfast
:56:36. > :56:42.broadband has got to be an absolute priority. We are a region that we
:56:42. > :56:45.are in a global economic race. We must absolutely be at the top.
:56:45. > :56:49.problem is that the history of the coalition suggests what we are
:56:49. > :56:55.likely to get is very little. cake has got to be divided up
:56:55. > :56:59.somehow and you can only spend what you've got. It is not about
:57:00. > :57:03.superfast broadband actually, because we haven't even got decent
:57:03. > :57:11.broadband in vast swathes of the area. That is what small businesses
:57:11. > :57:19.need. It wouldn't take a huge amount to get small businesses off. As the
:57:19. > :57:26.north-east done enough to make these schemes shovel ready? Have we solve
:57:26. > :57:36.the case to get the investment? Absolutely. We've had a -- economic
:57:36. > :57:41.
:57:41. > :57:47.review after economic review, setting out the case. We have
:57:47. > :57:52.said... I've seen the documents that Newcastle City Council sending out
:57:52. > :57:58.about broadband. Remember that 80% of all transport funding is south of
:57:58. > :58:03.Nottingham. Because our economy is so lopsided, because we don't have a
:58:03. > :58:07.regional authority any more, we don't get the attention and the
:58:08. > :58:13.independent assessment of our economic needs. We can always do
:58:13. > :58:19.more, if that is what you are saying. But we are too far away to
:58:19. > :58:23.get the same level of attention as London does for example. Does the
:58:23. > :58:26.Chancellor need to make a priority of the north-east because of our own
:58:26. > :58:31.-- because of our unemployment rate? There is the need for infrastructure
:58:31. > :58:35.investment. I think so. Infrastructure is the one big thing
:58:35. > :58:39.in terms of spending that would benefit the north-east. More here
:58:39. > :58:43.perhaps than the south. Well, we mustn't do anything to damage the
:58:43. > :58:48.south. That would be wrong to do that. But we must also do everything
:58:48. > :58:52.we can to help the regions. We are not like in Germany where you have
:58:52. > :59:01.strong cities outside the capital, strong regions that make sure those
:59:01. > :59:05.regions can cope independently. more cuts to councils. Can
:59:05. > :59:10.Sunderland survive that? Well, they've also -- already made �100
:59:10. > :59:18.million of cuts and that has gone through. Can it survive more?I
:59:18. > :59:23.think they can. There is enough that can be done. That's about it from