27/10/2013 Sunday Politics South West


27/10/2013

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Morning, folks. Welcome to the Sunday Politics. Hope you enjoyed

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the extra hour in bed, and that you've realised it's not 12:45. It's

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11:45! It's getting stormy outside. But they're already battening down

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the hatches at Number Ten because coalition splits are back, with

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bust-ups over free schools and power bills. We'll speak to the Lib Dems,

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and ask Labour who's conning whom over energy.

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EU leaders have been meeting in Brussels. But how's David Cameron

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getting on with that plan to change our relationship with Europe? We

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were there to ask him. Have we got any powers back yet? DS!

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Foreign companies own everything from our energy companies to our

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railways. Does it matter who In the South West, the plan to cut

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mobile library services. And the wind farm opponents who say they

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haven't got the stronger voice as many daily journeys made by bus

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than by tube, so why is the planned investment in buses not keeping

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pace? And with me, three journalists

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who've bravely agreed to hunker down in the studio while Britain braces

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itself for massive storm winds, tweeting their political forecasts

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with all the accuracy of Michael Fish on hurricane watch. Helen

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Lewis, Janan Ganesh and Nick Watt. Now, sometimes coalition splits are

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over-egged, or dare we say even occasionally stage-managed. But this

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week, we've seen what looks like the genuine article. It turns out Nick

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Clegg has his doubts about the coalition's flagship free schools

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policy. David Cameron doesn't much like the green levies on our energy

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bills championed by the Lib Dems. Neither of them seems to have

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bothered to tell the other that they had their doubts. Who better to

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discuss these flare-ups than Lib Dem Deputy Leader Simon Hughes? He joins

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me now. Welcome. Good morning. The Lib Dems spent three years of

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sticking up for the coalition when times were grim. Explain to me the

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logic of splitting from them when times look better. We will stick

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with it for five years. It is working arrangement, but not

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surprisingly, where there right areas on which we disagree over

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where to go next, we will stand up. It is going to be hard enough for

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the Lib Dems to get any credit for the recovery, what ever it is. It

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will be even harder if you seem to be semidetached and picky. The

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coalition has led on economic policy, some of which were entirely

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from our stable. The one you have heard about most often, a Lib Dem

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initiative, was to take people on blowing comes out of tax. The

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recovery would not have happened, there would not have been confidence

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in Britain, had there not been a coalition government with us in it,

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making sure the same policies produced fair outcomes. We are not

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going to leave the credit for any growth - and there has been very

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good news this week. We have played a part in that, and without us, it

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would not have happened. Does it not underline the trust problem you

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have? You promised to abolish tuition fees. You oppose nuclear

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power, now you are cheerleading the first multi-billion pounds

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investment in nuclear generation. You are dying out on your enthusiasm

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on green levies, and now they are up for renegotiation. Why should we

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trust a word you say? In relation to green levies, as you well know, just

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under 10% is to do with helping energy and helping people. Unless

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there is continuing investment in renewables, we will not have the

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British produced energy at cheaper cost to keep those bills down in the

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future. At cheaper cost? Explain that to me. Off-shore energy is

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twice the market rate. The costs of renewables will increasingly come

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down. We have fantastic capacity to produce the energy and deliver lots

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of jobs in the process. The parts of the energy bill that may be up for

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renegotiation seems to be the part where we subsidise to help either

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poor people pay less, or where we do other things. Too insulated the

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homes? Are you up to putting that to general taxation? Wouldn't that be

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progressive? I would. It would be progressive. I would like to do for

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energy bills what the Chancellor has done for road traffic users,

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drivers, which is too fuelled motor fuel -- to freeze new to fall. That

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would mean there would be an immediate relief this year, not

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waiting for the election. So there is a deal to be done there? Yes We

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understand we have to take the burden off the consumer, and also

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deal with the energy companies, who look as if they are not paying all

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the tax they should be, and the regulator, which doesn't regulate

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quickly enough to deal with the issues coming down the track. We can

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toughen the regulator, and I hope that the Chancellor, in the Autumn

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statement, was signalled that energy companies will not be allowed to get

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away with not paying the taxes they should. And this deal will allow

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energy prices to come down? Yes How could David Laws, one of your

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ministers, proudly defend the record of unqualified teachers working in

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free schools, and then stand side-by-side with Mr Clegg, as he

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says he is against them? David Laws was not proudly defending the fact

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that it is unqualified teachers He said that some of the new,

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unqualified teachers in free schools are doing a superb job. But you want

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to get rid of them? We want to make sure that everybody coming into a

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free school ends up being qualified. Ends up? Goes through a process that

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means they have qualifications. Just as we said very clearly at the last

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election that the manifesto curriculum in free schools should be

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the same as other schools. It looks like Mr Clegg is picking a fight

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just for the sake of it. Mr Clegg was taught by people who didn't have

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teaching qualifications in one of the greatest schools in the land, if

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not the world. It didn't seem to do him any harm. What is the problem?

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If you pay to go to a school, you know what you're getting. But that

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is what a free school is. No, you don't pay fees. A free school is

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parents taking the decisions, not you, the politicians. We believe

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they would expect to guarantee is, firstly that the minimum curriculum

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taught across the country is taught in the free schools, and secondly,

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that the teachers there are qualified. Someone who send their

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kids to private schools took a decision to take -- to send their

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children there, even if the teachers were unqualified, because they are

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experts in their field. Someone who send their kids to free schools is

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because -- is their decision, not yours. Because some of the free

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schools are new, and have never been there before, parents need a

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guarantee that there are some basics in place, whatever sort of school.

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So they need you to hold their hand? It is not about holding hands, it is

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about having a minimum guarantee. Our party made clear at our

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conference that this is a priority for us. Nick Clegg reflects the view

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of the party, and I believe it is an entirely rational thing to do. Nick

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Clegg complained that the Prime Minister gave him only 30 minutes

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notice on the Prime Minister Buzz 's U-turn on green levies. That is

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almost as little time as Nick Clegg gave the Prime Minister on his

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U-turn on free schools. Aren't you supposed to be partners? Green

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levies were under discussion in the ministerial group before Wednesday,

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because we identified this as an issue. We do that in a practical

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way. Sometimes there is only half an hour's notice. We had even less than

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half an hour this morning! Simon Hughes, thank you.

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So the price of energy is the big battle ground in politics at the

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moment. 72% of people say that high bills will influence the way they

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vote at the next election. Ed Miliband has promised a price freeze

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after the next election, but will the coalition turned the tables on

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Labour, with its proposal to roll back green levies. Caroline Flint

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joins us from Sheffield. It looks like the coalition will be able to

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take ?50 of energy bills, by removing green levies. It is quite

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clear that different parts of the government are running round waking

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up to the fact that the public feel that this government has not done

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enough to listen to their concerns. Last week, there was a classic case

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of the Prime Minister making up policy literally at the dispatch

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box. Let's see what they say in the autumn statement. The truth is,

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whatever the debate around green levies, and I have always said we

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should look at value for money at those green levies. Our argument is

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about acknowledging there is something wrong with the way the

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market works, and the way those companies are regulated. Behind our

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freeze for 20 months is a package of proposals to reform this market I

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understand that, but you cannot tell as the details about that. I can.

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You cannot give us the details about reforming the market. We are going

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to do three things, and I think I said this last time I was on the

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programme. First, we are going to separate out the generation side

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from the supply side within the big six. Secondly, we will have a energy

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pool, or power exchange, where all energy will have to be traded in

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that pool. Thirdly, we will establish a tougher regulator,

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because Ofgem is increasingly being seen as not doing the job right I

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notice that you didn't mention any reform of the current green and

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social taxes on the energy bill Is it Labour's policy to maintain the

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existing green levies? In 2011, the government chose to get rid of warm

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front, which was the publicly funded through tracks a scheme to support

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new installation. When they got rid of that, it was the first time we

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had a government since the 70s that didn't have such a policy. What is

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your policy? We voted against that because we believe it is wrong. We

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believe that the eco-scheme, a government intervention which is ?47

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of the ?112 on our bills each year, is expensive, bureaucratic and isn't

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going to the fuel poor. I am up for a debate on these issues. I am up

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for a discussion on what the government should do and what these

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energy companies should do. We cannot let Cameron all the energy

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companies off the hook from the way in which they organise their

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businesses, and expect us to pay ever increasing rises in our bills.

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There is ?112 of green levies on our bills at the moment. Did you vote

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against any of them? We didn't, but what I would say ease these were

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government imposed levies. When they got rid of the government funded

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programme, Warm Front, they introduced the eco-scheme. The

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eco-project is one of the ones where the energy companies are saying

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it's too bureaucratic, and it is proving more expensive than

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government estimates, apparently doubled the amount the government

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thought. These things are all worth looking at, but don't go to the

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heart of the issue. According to official figures, on current plans,

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which you support, which you voted for, households will be paying 1%

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more per unit of electricity by 2030. It puts your temporary freeze

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as just a blip. You support a 4 % rise in our bills. I support making

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sure we secure for the future access to energy that we can grow here in

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the UK, whether it is through nuclear, wind or solar, or other

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technologies yet to be developed. We should protect ourselves against

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energy costs we cannot control. The truth is, it is every fair for you

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to put that point across, and I accept that, but we need to hear the

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other side about the cost for bill payers if we didn't invest in new,

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indigenous sources of energy supply for the future, which, in the long

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run, will be cheaper and more secure, and create the jobs we

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need. I think it is important to have a debate about these issues,

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but they have to be seen in the right context. If we stay stuck in

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the past, we will pay more and we will not create jobs. How can you

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criticise the coalition's plans for a new nuclear station, when jeering

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13 years of a Labour government you did not invest in a single nuclear

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plant? You sold off all our nuclear technology to foreign companies

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Energy provision was put out to private hands and there has been no

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obstacle in British law against ownership outside the UK. Part of

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this is looking ahead. Because your previous track record is so bad

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What we did decide under the previous government, we came to the

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view, and there were discussions in our party about this, that we did

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need to support a nuclear future. At the time of that, David Cameron

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was one of those saying that nuclear power should be a last

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resort. And as you said, the Liberals did not support it. We

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stood up for that. We set in train the green light of 10 sites,

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including Hinkley Point, for nuclear development. I am glad to

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see that is making progress and we should make more progress over the

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years ahead. We took a tough decision when other governments had

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not done. You did not build a new nuclear station. When you get back

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into power, will you build HS2? That has not had a blank cheque

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from the Labour Party. I am in favour of good infrastructure. Are

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you in favour of?, answer the question? I have answered the

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question. It does not have a blank cheque. If the prices are too high,

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we will review the decision when we come back to vote on it. We will be

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looking at it closely. We have to look for value for money and how it

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benefits the country. Have you stocked up on jumpers this winter?

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I am perfectly all right with my clothing. What is important, it is

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ridiculous for the Government to suggest that the answer to the loss

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of trust in the energy companies is to put on another jumper.

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The coalition has taken a long time to come up with anything that can

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trump Ed Miliband's simple freezing energy prices, vote for us. Are

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they on the brink of doing so? I do not think so. They have had a

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problem that has dominated the debate, talking about GDP, the

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figures came out on Friday and said, well, and went back to talking

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about energy. My problem with what David Cameron proposes is he agrees

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with the analysis that the Big Six make too many profits. He wants to

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move the green levies into general taxation, so that he looks like he

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is protecting the profits of the energy companies. If the coalition

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can say they will take money off the bills, does that change the

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game? I do not think the Liberal Democrats are an obstacle to

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unwinding the green levies. I think Nick Clegg is open to doing a deal,

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but the real obstacle is the carbon reduction targets that we signed up

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to during the boom years. They were ambitious I thought at the time

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From that we have the taxes and clocking up of the supply-side of

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the economy. Unless he will revise that, and build from first

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principles a new strategy, he cannot do more than put a dent into

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green levies. He might say as I have got to ?50 now and if you

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voters in in an overall majority, I will look up what we have done in

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the better times and give you more. I am sure he will do that. It might

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be ?50 of the Bill, but it will be ?50 on your general taxation bill,

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which would be more progressive They will find it. We will never

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see it in general taxation. The problem for the Coalition on what

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Ed Miliband has done is that it is five weeks since he made that

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speech and it is all we are talking about. David Cameron spent those

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five weeks trying to work out whether Ed Miliband is a Marxist or

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whether he is connected to Middle Britain. That is why Ed Miliband

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set the agenda. The coalition are squabbling among themselves,

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looking petulant, on energy, and on schools. Nobody is taking notice of

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the fact the economy is under way, the recovery is under way. Ed

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Miliband has made the weather on this.

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It UK has a relaxed attitude about selling off assets based -- to

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companies based abroad. But this week we have seen the Swiss owner

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of one of Scotland's largest industrial sites, Grangemouth, come

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within a whisker of closing part of it down. So should we care whether

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British assets have foreign owners? Britain might be a nation of

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homeowners, but we appear to have lost our taste for owning some of

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our biggest businesses. These are among the crown jewels sold off in

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the past three decades to companies based abroad. Roughly half of

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Britain's essential services have overseas owners. The airport owner,

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British Airports Authority, is owned by a Spanish company.

:20:41.:20:43.

Britain's largest water company Thames, is owned by a consortium

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led by an Australian bank. Four out of six of Britain's biggest energy

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companies are owned by overseas giants, and one of these, EDF

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Energy, which is owned by the French state, is building Britain's

:20:53.:20:55.

first nuclear power plant in a generation, backed by Chinese

:20:56.:21:03.

investors. It's a similar story for train operator Arriva, bought by a

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company owned by the German state. So part of the railways privatised

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by the British government was effectively re-nationalised by the

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German government. But does it matter who owns these companies as

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long as the lights stay on, the trains run on time, and we can

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still eat Cadbury's Dairy Milk? We are joined by the general

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secretary of the RMT, Bob Crow, and by venture capitalist Julie Meyer.

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They go head to head. Have we seen the consequences of

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relying for essential services to be foreign-owned? Four of the Big

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Six energy companies, Grangemouth, owned by a tax exile in Switzerland.

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It is not good. I do not think there is a cause and effect

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relationship between foreign ownership and consumer prices. That

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is not the right comparison. We need to be concerned about

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businesses represented the future, businesses we are good at

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innovating for example in financial services and the UK has a history

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of building businesses, such as Monotypes. If we were not creating

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businesses here -- Monotise. Like so many businesses creating

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products and services and creating the shareholders. Should we allow

:22:41.:22:48.

hour essential services to be in foreign ownership? It was

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demonstrated this week at Grangemouth. If you do not own the

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industry, you do not own it. The MPs of this country and the

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politicians in Scotland have no say, they were consultants.

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Multinationals decide whether to shut a company down. If that had

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been Unite union, they are the ones who saved the jobs. They

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capitulated. They will come back, like they have for the past 150

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years, and capture again what they lost. If it had closed, they would

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have lost their jobs for ever. If the union had called the members up

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without a ballot for strike action, there would have been uproar. This

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person in Switzerland can decide to shut the entire industry down. The

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coalition, the Labour Party, as well, when Labour was in government,

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they played a role of allowing industries to go abroad, and it

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should be returned to public ownership. Nestor. It has

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demonstrated that the Net comes from new businesses. We must not

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be... When Daly motion was stopped by the French government to be sold,

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it was an arrow to the heart of French entrepreneurs. We must not

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create that culture in the UK. Every train running in France is

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built in France. 90% of the trains running in Germany are built in

:24:30.:24:37.

Germany. In Japan, it has to be built in that country, and now an

:24:38.:24:44.

energy company in France is reducing its nuclear capability in

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its own country and wants to make profits out of the British industry

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to put back into it state industry. That happened with the railway

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industry. They want to make money at the expense of their own state

:24:57.:25:02.

companies. We sold off energy production. How did we end up in a

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position where our nuclear capacity will be built by a company owned by

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a socialist date, France, and funded by a communist one, China,

:25:17.:25:24.

for vital infrastructure? I am not suggesting that is in the national

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interest. I am saying we can pick any one example and say it is a

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shame. The simple matter of the fact is the owners are having to

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make decisions. Not just Grangemouth, businesses are making

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decisions about what is the common good. Not just in the shareholders'

:25:42.:25:47.

interest. For employees, customers. What is in the common good when

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prices go up by 10% and the reason is that 20 years ago they shut

:25:53.:25:56.

every coal pit down in this country, the Germans kept theirs open and

:25:57.:26:01.

subsidised it and now we have the Germans doing away with nuclear

:26:02.:26:08.

power and they have coal. Under the Labour government, in 2008, the

:26:09.:26:14.

climate change Act was passed. Well before that, and you know yourself,

:26:15.:26:19.

they shut down the coal mines to smash the National Union of

:26:20.:26:23.

Mineworkers because they dared to stand up for people in their

:26:24.:26:28.

community. Even if we wanted to reopen the coalmines, it would be

:26:29.:26:32.

pointless. Under the 2008 Act, we are not meant to burn more coal

:26:33.:26:40.

The can, as if you spent some of the profits, you could have carbon

:26:41.:26:47.

catch up. That does not exist on a massive scale. You are arguing the

:26:48.:26:51.

case, Julie Meyer, for entrepreneurs to come to this

:26:52.:26:56.

country. Even Bob Crow is not against that. We are trying to

:26:57.:27:02.

argue, should essential services be in foreign hands? Not those in

:27:03.:27:10.

Silicon round about doing start ups. I am trying to draw a broader

:27:11.:27:16.

principle than just energy. Something like broadband services,

:27:17.:27:19.

also important to the functioning of the economy. I believe in the

:27:20.:27:27.

UK's ability to innovate. When we have businesses that play off

:27:28.:27:31.

broadband companies to get the best prices for consumers. These new

:27:32.:27:36.

businesses and business models are the best way. Not to control, but

:27:37.:27:43.

to influence. It will be a disaster. Prices will go up and up as a

:27:44.:27:49.

result. Nissan in Sunderland, a Japanese factory, some of the best

:27:50.:27:54.

cars and productivity. You want that to be nationalised and bring

:27:55.:27:57.

it down to the standard of British Leyland? It is not bring it down to

:27:58.:28:02.

the standard. The car manufacturing base in this country has been

:28:03.:28:07.

wrecked. We make more cars now for 20 years -- than in 20 years.

:28:08.:28:13.

Ford's Dagenham produced some of the best cars in the world. Did you

:28:14.:28:21.

buy one? I cannot drive. They moved their plants to other countries

:28:22.:28:27.

where it was cheaper labour. Would you nationalise Nissan? There

:28:28.:28:32.

should be one car industry that produces cars for people. This week

:28:33.:28:39.

the EU summit was about Angela Merkel's mobile phone being tapped,

:28:40.:28:45.

they call it a handy. We sent Adam to Brussels and told him to ignore

:28:46.:28:50.

the business about phone-tapping and investigate the Prime

:28:51.:28:52.

Minister's policy on Europe instead. I have come to my first EU summit to

:28:53.:29:08.

see how David Cameron is getting on with his strategy to claim power was

:29:09.:29:12.

back from Brussels. Got any powers back yet? Yes! Which ones? Sadly,

:29:13.:29:21.

his fellow leaders were not as forthcoming. Chancellor, are you

:29:22.:29:26.

going to give any powers back to Britain? Has David Cameron asked you

:29:27.:29:33.

for any powers back? The president of the commission just laughed, and

:29:34.:29:39.

listen to the Lithuanian President. How is David Cameron's renegotiation

:29:40.:29:50.

strategy going? What's that? He wants powers back for Britain. No

:29:51.:29:55.

one knows what powers David Cameron actually wants. Even our usual

:29:56.:30:00.

allies, like Sweden, are bit baffled. We actually don't know yet

:30:01.:30:07.

what is going through the UK membership. We will await the

:30:08.:30:14.

finalisation of that first. You should ask him, and then tell us!

:30:15.:30:20.

Here is someone who must know, the Dutch Prime Minister, he is doing

:30:21.:30:25.

what we are doing, carrying out a review of the EU powers, known as

:30:26.:30:30.

competencies in the jargon, before negotiating to get some back. Have

:30:31.:30:35.

you had any negotiations with David Cameron over what powers you can

:30:36.:30:40.

bring back from Brussels? That is not on the agenda of this summit.

:30:41.:30:46.

Have you talked to him about it This is not on the schedule for this

:30:47.:30:50.

summit. David Cameron's advises tummy it is

:30:51.:30:59.

because he is playing the long game. -- David Cameron's advisers tell me.

:31:00.:31:08.

At this summit, there was a task force discussing how to cut EU red

:31:09.:31:15.

tape. Just how long this game is was explained to me outside the summit,

:31:16.:31:19.

by the leader of the Conservatives in the European Parliament. I think

:31:20.:31:25.

the behind-the-scenes negotiations will start happening when the new

:31:26.:31:28.

commissioner is appointed later next year. I think the detailed

:31:29.:31:34.

negotiations will start to happen bubbly after the UK general

:31:35.:31:38.

election. That is when we will start getting all of the detail of the

:31:39.:31:43.

horse trading, and real, Lake night negotiations. Angela Merkel seems

:31:44.:31:50.

keen to rewrite the EU's main treaties to deal with changes in the

:31:51.:31:55.

Eurozone, and that is the mechanism David Cameron would use to

:31:56.:31:59.

renegotiate our membership. Everyone here says his relationship with the

:32:00.:32:03.

German Chancellor is strong. So after days in this building, here is

:32:04.:32:09.

how it looks. David Cameron has a mountain to climb. It is climbable,

:32:10.:32:14.

but he isn't even in the foothills yet. Has he even started packing his

:32:15.:32:19.

bags for the trip? Joining us now, a man who knows a

:32:20.:32:24.

thing or two about the difficulties Prime Minister 's face in Europe.

:32:25.:32:29.

Former Deputy Prime Minister, Michael Heseltine. We are nine

:32:30.:32:33.

months from David Cameron's defining speech on EU renegotiation. Can you

:32:34.:32:41.

think of one area of progress? I don't know. And you don't know. And

:32:42.:32:47.

that's a good thing. Why is it a good thing? Because the real

:32:48.:32:52.

progress goes on behind closed doors. And only the most naive,

:32:53.:33:03.

because the real progress goes on behind closed doors. Because, in

:33:04.:33:11.

this weary world, you and I, Andrew, know full well that the moment you

:33:12.:33:17.

say, I making progress, people say, where? And the machine goes to work

:33:18.:33:21.

to show that the progress isn't enough. So you are much better off

:33:22.:33:28.

making progress as best you can in the privacy of private diplomacy. It

:33:29.:33:37.

is a long journey ahead. In this long journey, do you have a clear

:33:38.:33:41.

sense of the destination? Do you have a clear sense of what powers Mr

:33:42.:33:48.

Cameron wants to negotiate? I have a clear sense of the destination,

:33:49.:33:52.

which is a victory for the campaign that he will win to stay inside the

:33:53.:33:58.

European community. That is the agenda, and I have total support for

:33:59.:34:07.

that. I understand that, but if he is incapable of getting any tangible

:34:08.:34:12.

sign of renegotiation, if he is able only to do what Wilson did in 1 75,

:34:13.:34:19.

which was to get a couple of token changes to our membership status, he

:34:20.:34:23.

goes into that referendum without much to argue for. He has everything

:34:24.:34:29.

to argue for. He's got Britain's vital role as a major contributor to

:34:30.:34:37.

the community. He's got Britain s self interest as a major

:34:38.:34:43.

beneficiary, and Britain's vital role in the City of London. He's got

:34:44.:34:49.

everything to argue for. He could argue for that now. He could have a

:34:50.:34:54.

referendum now. He doesn't want one now. I haven't any doubt that he

:34:55.:35:02.

will come back with something to talk about. But it may be slightly

:35:03.:35:11.

different to what his critics, the UK isolationist party people, want.

:35:12.:35:17.

He may, for example, have found that allies within the community want

:35:18.:35:23.

change as well, and he may secure changes in the way the community

:35:24.:35:29.

works, which would be a significant argument within the referendum

:35:30.:35:32.

campaign. Let me give you an example. I think it is a scandal

:35:33.:35:37.

that the European Commission don't secure the auditing of some of the

:35:38.:35:44.

accounts. Perhaps that could be on the agenda. He might find a lot of

:35:45.:35:49.

contributing countries, like Germany, like Colin and, would be

:35:50.:35:58.

very keen. -- like Holland. David vetoed the increase in the European

:35:59.:36:03.

budgets the other day, and he had a lot of allies. So working within

:36:04.:36:08.

Europe on the things that people paying the European bills want is

:36:09.:36:13.

fertile ground. Is John Major right to call for a windfall tax on the

:36:14.:36:20.

energy companies? John is a very cautious fellow. He doesn't say

:36:21.:36:24.

things without thinking them out. So I was surprised that he went for a

:36:25.:36:32.

windfall tax. First of all, it is retrospective, and secondly, it is

:36:33.:36:36.

difficult to predict what the consequences will be. I am, myself,

:36:37.:36:41.

more interested in the other part of his speech, which was talking about

:36:42.:36:45.

the need for the Conservative Party to seek a wider horizon, to

:36:46.:36:50.

recognise what is happening to the Conservative Party in the way in

:36:51.:36:54.

which its membership is shrinking into a southeastern enclave. Are you

:36:55.:37:04.

in favour of a windfall tax? I am not in favour of increasing any

:37:05.:37:16.

taxes. Do you share Iain Duncan Smith's point of view on welfare

:37:17.:37:22.

reform? I think Iain Duncan Smith is right. It is extremely difficult to

:37:23.:37:31.

do, but he is right to try. I think public opinion is behind him, but it

:37:32.:37:40.

isn't easy, because on the fringe of these issues there are genuine hard

:37:41.:37:45.

luck stories, and they are the ones that become the focus of attention

:37:46.:37:50.

the moment you introduce change. It requires a lot of political skill to

:37:51.:37:56.

negotiate your way through that. But isn't Iain Duncan Smith right to

:37:57.:38:01.

invoke the beverage principle, that you should be expected to make a

:38:02.:38:05.

contribution for the welfare you depend on? Yes, he is. I will let

:38:06.:38:11.

you get your Sunday lunch. Thanks for joining us.

:38:12.:38:16.

Coming up in just over 20 minutes, I will be looking

:38:17.:38:27.

Hello, I'm Lucie Fisher. Coming up on the Sunday Politics in the South

:38:28.:38:31.

West. The council planning to cut mobile

:38:32.:38:33.

library services whilst spending millions on the type which stay in

:38:34.:38:39.

one place. And for the next 20 minutes, I'm

:38:40.:38:43.

joined by the Lib Dem MP Stephen Gilbert, and the leader of the UKIP

:38:44.:38:46.

group on Cornwall Council, Steph McWIlliam. Welcome to the programme.

:38:47.:38:51.

Let's begin with school funding. In June, the Chancellor promised to

:38:52.:38:55.

close the funding gap which can mean pupils in the South West are worth

:38:56.:38:59.

more than ?3,000 a year less than those in London. The Education

:39:00.:39:04.

Secretary hammered home the Government's good news on a visit to

:39:05.:39:07.

Barnstaple's Pilton Community College. It is an historic

:39:08.:39:17.

unfairness which means areas in the South West have been discriminated

:39:18.:39:22.

against. That will end. This week, the North Devon MP Sir Nick Harvey

:39:23.:39:26.

wrote to Michael Gove urging him to introduce a fairer funding formula

:39:27.:39:30.

not in April 2015, but as quickly as possible. Do you agree with Nick

:39:31.:39:33.

Harvey that the schools need the money now, not in the future?

:39:34.:39:38.

Absolutely, it has been a running sore in Cornwall... There is a

:39:39.:40:05.

growing number of people who want to see a fairer funding formula. We

:40:06.:40:09.

heard Michael Gove been quite definite about this. It has not been

:40:10.:40:17.

a great week for coalition unity. I do not think this is a big split in

:40:18.:40:22.

the coalition, it is not that kind of story. What we are clear about as

:40:23.:40:27.

a government is that there will be a fairer funding formula introduced.

:40:28.:40:33.

It is worth millions? Yes, it is, and it will make a real difference

:40:34.:40:37.

to those remote, rural schools who are struggling at the moment. Are

:40:38.:40:44.

you satisfied this will go ahead? It is going to be much too late, we

:40:45.:40:48.

already have some serious problems with the shortage of school places.

:40:49.:40:52.

Schools, even where we have an adequate number of places, are

:40:53.:40:58.

struggling. We have been let down for a very long time by all the

:40:59.:41:05.

parties. Yes, we have been let down. But we have only been in power

:41:06.:41:12.

for the last three years and are delivering a fairer funding

:41:13.:41:15.

formula. 13 years of Labour did not address this. We saw a big buyers

:41:16.:41:20.

towards funding for inner`city areas. It is quite a lot of money,

:41:21.:41:31.

?3000. Even if you say that our line which problems in schools in London,

:41:32.:41:36.

special educational needs must be the same for the South West as for

:41:37.:41:42.

people in London? I have never understood the difference in nation

:41:43.:41:48.

between `` the differentiation between London and rural areas. We

:41:49.:41:54.

have difficulties in my local school because we are not in a big, urban

:41:55.:42:01.

centre and our pupil numbers are critical. The funding means we have,

:42:02.:42:08.

at the moment, a teacher coping with reception and year one. It is not

:42:09.:42:16.

ideal. Hopefully, it will be addressed sooner rather than later.

:42:17.:42:23.

Campaigners against wind farms say the Government's promise to give

:42:24.:42:25.

communities new powers to block applications has turned out to be

:42:26.:42:29.

nothing more than spin. In parts of Devon, councillors are continuing to

:42:30.:42:32.

see their decisions to reject wind turbines overturned on appeal. Anna

:42:33.:42:33.

Varle reports. It is an issue which continues to

:42:34.:42:44.

divide society. The government should stop putting wind turbines in

:42:45.:42:49.

the open countryside. The impact on the landscape is enormous. There

:42:50.:42:53.

will soon be nowhere in the countryside where there will not

:42:54.:42:58.

beef fuse of turbines. The government published new planning

:42:59.:43:00.

guidance the summer of which is said would give communities more say in

:43:01.:43:04.

refusing unsuitable projects. There have been some wind farm satire

:43:05.:43:10.

inappropriately cited. Some people feel under siege on the strong wind

:43:11.:43:18.

farms. But residents living in North Devon say this is not happening. The

:43:19.:43:23.

local authority refused permission for a 35 metre turbine to be built

:43:24.:43:29.

on this site, only for the decision to be overturned by the planning

:43:30.:43:37.

inspector this week. It is such a disappointment for the expected to

:43:38.:43:40.

come in and override all public opinion. `` for the inspector.

:43:41.:43:46.

Torridge District Council see it has seen an increase in applications of

:43:47.:43:55.

500% is since 2010, most of which it has said yes to. But 90% of the

:43:56.:44:02.

projects they rejected last year had been overturned at national level.

:44:03.:44:09.

It is ludicrous that we have no local determination. It is really

:44:10.:44:16.

government views and forced upon us, and there seems to be nothing we

:44:17.:44:28.

can do. It is not satisfactory. Nationally, others claim the

:44:29.:44:31.

guidance the government has issued this year has been misunderstood and

:44:32.:44:35.

local communities do not have the power to stop an application. There

:44:36.:44:47.

is no veto in the guidance published this year. The news will be of

:44:48.:44:51.

comfort to developers of renewable energy who say they do work closely

:44:52.:44:57.

with local communities. More than 70% of people in the south`west say

:44:58.:45:01.

they will support more wind farms being built there, but we want to

:45:02.:45:06.

see the right places. It might be too late for these residents. Those

:45:07.:45:10.

who have lived and farmed here for more than 50 years say they still

:45:11.:45:15.

have hope. We will probably find we are up against a brick wall, but

:45:16.:45:19.

nevertheless, we hope that this localism bill, much trumpeted by the

:45:20.:45:26.

government, will actually have some value.

:45:27.:45:29.

Wind turbine opponent Dennis Cronk ending that report from Anna Varle.

:45:30.:45:35.

It does appear that localism has been a bit of a sham? It leaves a

:45:36.:45:42.

very bitter taste in people's mouths when a democratic planning process

:45:43.:45:46.

that local communities access through their local council is then

:45:47.:45:50.

overturned by the planning Inspectorate. It happens in my

:45:51.:45:54.

constituency in house`building applications as much as on wind

:45:55.:46:01.

turbines. We need to use the provisions in the localism bill and

:46:02.:46:06.

make sure that communities are exercising what is in there. But

:46:07.:46:11.

that is what the localism bill should be doing. 90% of turbines at

:46:12.:46:21.

`` but were rejected at local level, within approved at national level.

:46:22.:46:26.

It leaves a bitter taste in the mouth when democratic local

:46:27.:46:31.

decisions are overturned. But we need to be clear that the community

:46:32.:46:35.

is using all the provisions that are in the localism act to be as

:46:36.:46:45.

muscular as possible. We spoke to a lot of people in these communities

:46:46.:46:50.

who are very cross, is UKIP benefiting from this? There is a

:46:51.:46:57.

really important issue here. I have been at some site meetings for wind

:46:58.:47:04.

farm applications, these wind turbines are everywhere and it is

:47:05.:47:06.

frightening how close they are coming to residential properties of

:47:07.:47:12.

non`financially involved people. There is in increasing body of

:47:13.:47:16.

evidence that there is a link between proximity of turbines and

:47:17.:47:20.

adverse health effects. This has got to get onto the agenda and I am

:47:21.:47:24.

hoping that Stephen might be able to visit with it really `` with Ed

:47:25.:47:35.

Davey. There is always going to be a debate we are situated, whether

:47:36.:47:42.

neighbours have our financial interest or not. What is clear as

:47:43.:47:45.

our country is that we need diverse energy provision, on short

:47:46.:47:54.

renewables, offshore renewables. Nuclear power stations as well.

:47:55.:48:01.

Where is the money coming form `` from for that? We have two large

:48:02.:48:17.

offshore wind farms planned, paid for by foreign companies. There has

:48:18.:48:29.

to be ?120 billion worth of money invested in energy to make sure that

:48:30.:48:33.

we can keep the lights on and guard against climate change. That is the

:48:34.:48:44.

government's position. That is why... But how can you have that and

:48:45.:48:54.

community involvement? If foreign investors are investing billions of

:48:55.:49:03.

pounds in these plans, how can community voices be heard? Lots of

:49:04.:49:12.

their schemes we have heard about will be domestic. I am glad you

:49:13.:49:17.

brought this up because we keep hearing about all these jobs,

:49:18.:49:23.

renewable energy projects and jobs. In my parish, the entire workforce

:49:24.:49:29.

and all the materials were brought in from overseas. Julian the

:49:30.:49:35.

construction phase, the number of jobs for local people, none. ``

:49:36.:49:47.

during. During the running phase, the number of jobs for local people,

:49:48.:49:53.

none. The concern about the health risks of radiation, which we all

:49:54.:49:57.

know accept, we need to be looking at the evidence which is already out

:49:58.:50:05.

there. I do not note the detailed example, but if you look at the

:50:06.:50:10.

billions of pounds of investment that has now been secured for the

:50:11.:50:16.

new nuclear power station, 20,000 jobs will be created on the back of

:50:17.:50:20.

it initially, pouring billions of pounds into the local economy. We

:50:21.:50:28.

need to be open to businesses and investment from around the world.

:50:29.:50:34.

Why are British people not investing? Why is it the Chinese,

:50:35.:50:45.

who actually have a minority Shia and want a controlling interest. ``

:50:46.:50:54.

minority share. We need ?120 billion worth of investment to keep the

:50:55.:50:58.

lights on over the next period of time. We need to have our door is

:50:59.:51:02.

open to all those who want to invest in the United Kingdom and create

:51:03.:51:07.

jobs here. Jobs that... I have to stop you there.

:51:08.:51:11.

Some of the region's most isolated communities are bracing themselves

:51:12.:51:14.

for the loss of their mobile library service after Devon County Council

:51:15.:51:17.

announced plans to cut stops where fewer than three people turn up.

:51:18.:51:19.

Councillors are, of course, struggling to make ends meet in

:51:20.:51:22.

increasingly straitened times, but some are now questioning their

:51:23.:51:25.

decisions to spend millions doing`up static libraries. Jenny Kumah

:51:26.:51:32.

reports. Devon's mobile library service

:51:33.:51:35.

serves some of the county's most remote communities. But at a time of

:51:36.:51:40.

tighter budget, the council is looking at making cutbacks. I have

:51:41.:51:46.

got four vehicles that are coming to the end of their working life. To

:51:47.:51:53.

replace them would cost about ?200,000. We have been looking at

:51:54.:52:00.

the statistics that are coming out of the... That we take all the time.

:52:01.:52:07.

We think that these stops are less than four people, quite often. One

:52:08.:52:17.

of the 70s `` one of the 70 steps is this one. This week, it did not

:52:18.:52:22.

appear to be underused. Around a dozen children have been on board to

:52:23.:52:25.

borrow books. The headteacher did not want to appear on film, but she

:52:26.:52:30.

told me that they need the service because it adds to the range of

:52:31.:52:34.

books children can't read. There was also a young mother on board with

:52:35.:52:38.

her child. She to be she was disappointed to hear that the

:52:39.:52:41.

service was under threat. She said the next nearest service would mean

:52:42.:52:52.

a car journey. In the past, visits to Devon's library have dropped by

:52:53.:52:57.

17%. The county council says the decline is mainly down to people

:52:58.:53:02.

accessing the library online and a reduction in opening hours. Despite

:53:03.:53:07.

this decline, the authority is spending ?4.1 million on

:53:08.:53:14.

refurbishing Exeter. This week, said mouth also reopened after a

:53:15.:53:29.

refurbishment. `` said it's very nice. I like it. There is a decline

:53:30.:53:40.

in people going to libraries. It is up to the council to bridge that

:53:41.:53:44.

demand and decide whether to invest more in libraries or online. But the

:53:45.:53:53.

council stands by its investment. You need to invest to make sure that

:53:54.:53:58.

libraries provide what people want. When we have been refurbishing other

:53:59.:54:05.

libraries, people's use of those libraries just goes through the roof

:54:06.:54:09.

and that is what I expect to see from this library in Sidmouth.

:54:10.:54:19.

Devon's councillors are proud of keeping libraries open. But as the

:54:20.:54:23.

funding squeeze continues, councillors across the region will

:54:24.:54:27.

face tough choices over how much priority libraries should be given

:54:28.:54:32.

for the future. We love our libraries in Britain,

:54:33.:54:37.

but is it right to continue investing in them when councils are

:54:38.:54:42.

so strapped for cash? You have got to treat libraries the same way as

:54:43.:54:48.

so many other services. Times are changing, people are using E books

:54:49.:54:53.

and getting information electronically. There is not the

:54:54.:54:57.

same demand as there was. But last week, I visited a wonderful library

:54:58.:55:04.

in Upton cross which is in the kitchen of the primary school. It

:55:05.:55:09.

doubles as a community library and a school library. A wonderful lady

:55:10.:55:17.

runs it, and it was buzzing. What we must not lose is in using children

:55:18.:55:22.

with that love of books, just picking them up and being familiar

:55:23.:55:34.

with them. The investment and that was miniscule compared with building

:55:35.:55:41.

a new library. And it does have Internet access. Have times moved

:55:42.:55:47.

on, should we be investing in new things, our libraries on their way

:55:48.:55:54.

out? I hope not. The passion for books, knowledge and education is

:55:55.:55:57.

something that has helped to underpin our country's success and

:55:58.:56:07.

libraries play a key role in that. I think there are tough choices for

:56:08.:56:12.

councillors to make, to get the right balance in these difficult

:56:13.:56:16.

times. It is great news that the economy has continued to grow over

:56:17.:56:21.

the last quarter. But if you are council and you are facing cuts in

:56:22.:56:25.

library services and cuts to adult services, respite care centres, it

:56:26.:56:31.

is a difficult decision over what to go with? There is no doubt that

:56:32.:56:37.

these are difficult decisions and there is a difficult balance for

:56:38.:56:42.

councillors across the region to make. We simply do not have the

:56:43.:56:47.

money to spend on the ideal scenario across all services at the moment.

:56:48.:56:51.

That is why it is good news that the economy has improved. I hear what

:56:52.:56:58.

you are saying? There is a plan to put up council tax to try to get

:56:59.:57:08.

some... I am glad you brought this up because has been a lot of

:57:09.:57:11.

misunderstanding. That motion that was discussed on Tuesday was to see

:57:12.:57:18.

an alternative budget, not voting on 6%. In fact, from my point of view,

:57:19.:57:29.

I am being presented as a new councillor with one budget, take it

:57:30.:57:33.

or leave it. I wanted to see two, to compare it. To see what the impact

:57:34.:57:40.

would be on services. So you might vote for a larger increase? Probably

:57:41.:57:46.

not, but I have not been given the information to make an informed

:57:47.:57:49.

decision. Because of the severe reduction in government funding that

:57:50.:57:56.

we are getting, and it is this government that is making that

:57:57.:58:02.

decision. Now our regular round`up of the political week in 60 seconds.

:58:03.:58:14.

The Prime Minister came to Somerset to announce plans for a new nuclear

:58:15.:58:22.

power station. This company is investing in local training, local

:58:23.:58:25.

colleges to make sure that young people in Somerset can do

:58:26.:58:30.

apprenticeships here and learn skills in engineering and

:58:31.:58:36.

construction. There were reports an increase `` of an increase in

:58:37.:58:41.

house`building. There is a rise in new home construction, it is good

:58:42.:58:48.

news. Motorists in Torbay welcomed a cut to parking charges. It will

:58:49.:58:58.

bring more local people in. And taxi drivers in Newton Abbot were told to

:58:59.:59:06.

remove stickers on their cars with the words local driver on them. It

:59:07.:59:11.

is quite upsetting that you cannot put our country's flag on the door.

:59:12.:59:20.

We will come back to you on this. Taxi drivers told to remove stickers

:59:21.:59:25.

with the words local driver on them. What do you make of that? They are

:59:26.:59:32.

running a business and in order to run a successful business, if they

:59:33.:59:39.

see this as a way of helping to keep their business going, if that is

:59:40.:59:43.

what local people want to know, give them that information. If you drive

:59:44.:59:53.

around Cornwall, that you will see lots of Cornish crosses on the cars.

:59:54.:00:01.

I do not think it is racist. I think the council leader has suggested

:00:02.:00:04.

they may have overreacted and asking the taxi drivers to remove them. I

:00:05.:00:09.

suppose what they were thinking, they were not saying our local

:00:10.:00:13.

driver in terms of being Cornish or Devon, it is more British driver, as

:00:14.:00:23.

opposed to being Polish or whatever M is that a problem there? I do not

:00:24.:00:36.

think it is important. What is important is being able to

:00:37.:00:40.

communicate between driver and customer. When I have been to other

:00:41.:00:51.

cities around the UK, that is what is important to me as a user of the

:00:52.:00:56.

taxi. Would you have a problem with it? Somebody and advertising

:00:57.:01:09.

themselves as being not foreign? I think that is stretching the point.

:01:10.:01:16.

All you have to do is cross the river and go into Cornwall and you

:01:17.:01:18.

will see free school area for into that

:01:19.:01:31.

Is Labour about to drop its support category. Thank you.

:01:32.:01:32.

Is Labour about to drop its support for High Speed 2, a rail line the

:01:33.:01:36.

party approved while in government? for High Speed 2, a rail line the

:01:37.:01:47.

these green shoots? These are all questions for The Week Ahead.

:01:48.:01:59.

So, HS2. Miss Flint wouldn't answer the question. She's in northern MP

:02:00.:02:04.

too. Ed Balls is comparing it to the Millennium Dome.

:02:05.:02:09.

too. Ed Balls is comparing it to the minute's silence for HS2? It will

:02:10.:02:14.

not be quite as crude as that. They will not stand up and say, we

:02:15.:02:19.

not be quite as crude as that. They senior Labour person said to me it

:02:20.:02:19.

would be a bit senior Labour person said to me it

:02:20.:02:22.

that Gordon Brown and Ed Balls set for the euro back in 97. They will

:02:23.:02:28.

be chucking lots of questions into the air, and the questions will

:02:29.:02:31.

create doubt, and will create the grounds for Labour to say, at some

:02:32.:02:38.

point, we think there is a much much better way of spending the money. It

:02:39.:02:43.

isn't ?42 billion, because that includes a contingency. Let's see

:02:44.:02:49.

what Peter Mandelson had to say about HS2. He was in the government

:02:50.:02:57.

when Labour supported it. Frankly, there was too much of the argument

:02:58.:03:01.

that if everyone else has got a high-speed train, we should have won

:03:02.:03:08.

too. Regardless of need, regardless of cost, and regardless of

:03:09.:03:14.

alternatives. As a party, to be frank, we didn't feel like being

:03:15.:03:19.

trumped by the zeal of the then opposition's support for the

:03:20.:03:26.

high-speed train. We wanted, if anything, to upstage them. So they

:03:27.:03:31.

didn't really need it, and we're only talking about ?50 billion. Why

:03:32.:03:38.

would you take a decision involving ?50 billion in a serious way? For

:03:39.:03:42.

David Cameron, if it becomes clear Labour is against it, he cannot

:03:43.:03:48.

proceed. He indicated last week that he wouldn't proceed if the certainty

:03:49.:03:52.

wasn't there. For Labour, HS2 is really a debate about the deficit by

:03:53.:03:56.

proxy. They think that if you don't go ahead with HS2, that releases

:03:57.:04:01.

tens of billions of pounds to spend on other things, such as public

:04:02.:04:06.

services, without going into boring. I don't think that works because

:04:07.:04:28.

there was a difference between cancelling something that already

:04:29.:04:30.

exists to pay for something else, and cancelling something that does

:04:31.:04:33.

not yet exist and will be paid for over decades to pay for something

:04:34.:04:35.

here and now. Can Labour do this? I know that the line will be, we are

:04:36.:04:38.

not going to build this railway because we are going to build

:04:39.:04:41.

200,000 houses a year. Can they do this without political cost? I think

:04:42.:04:43.

there will be political costs, but they will play this card of we have

:04:44.:04:48.

changed our mind. I think Cameron's line has been very clever, saying we

:04:49.:04:53.

cannot do it without labour. You can put it in two ways. Sorry, we cannot

:04:54.:04:58.

go ahead with it, but Labour has ruined your chance of prosperity, or

:04:59.:05:03.

they can tie themselves to it, and then Labour cannot attack it on

:05:04.:05:09.

great grounds when costs do spire. You can write Labour's script right

:05:10.:05:14.

now. They can say, if we were in charge, the financial management

:05:15.:05:22.

would be much better. This raises some really important questions for

:05:23.:05:27.

the government. They have utterly failed to make the case for HS2

:05:28.:05:33.

There is a real case to make. Between London and Birmingham it is

:05:34.:05:37.

about capacity not speed. North of Birmingham, it is about

:05:38.:05:42.

connectivity. It is a simple case to make, but it is only in the last

:05:43.:05:46.

month that they have been making that case. It shows really terrible

:05:47.:05:49.

complacency in the coalition that they haven't done that. We'll HS2

:05:50.:05:57.

happen or not? I think it will. For the reasons that Nick outlined,

:05:58.:06:01.

there is not of a constituency for it amongst Northern areas. -- there

:06:02.:06:10.

is enough of a constituency for it. There is private investment as well.

:06:11.:06:17.

It isn't like Heathrow. I say no, because I think Labour will drop

:06:18.:06:24.

their support for it. Caroline Flint said she was in favour of the

:06:25.:06:27.

concept of trains generally, but will it go further than that? It is

:06:28.:06:32.

difficult to see how it will go ahead if Labour will not support it

:06:33.:06:38.

after setting five tests that it clearly will not meet. Some will

:06:39.:06:46.

breathe a sigh of relief. Some will say, even in the 20th century, we

:06:47.:06:51.

cannot build a proper rail network. The economy was another big story of

:06:52.:06:56.

the week. We had those GDP figures. There is a video the Tories are

:06:57.:07:01.

releasing. The world premiere is going to be here. Where's the red

:07:02.:07:05.

carpet? It gives an indication of how the Tories will hand Mr Miliband

:07:06.:07:09.

and labour in the run-up to the election. Let's have a look at it.

:07:10.:07:43.

These graphics are even worse than the ones we use on our show! How on

:07:44.:07:49.

earth would you expect that to go viral? It did have a strange feel

:07:50.:07:58.

about it. It doesn't understand the Internet at all. Who is going to

:07:59.:08:02.

read those little screens between it? Put a dog in it! However,

:08:03.:08:15.

putting that aside, I have no idea that that is going to go viral. The

:08:16.:08:20.

Tories are now operating - and I say Tories rather than the coalition -

:08:21.:08:26.

on the assumption that the economy is improving and will continue to

:08:27.:08:30.

improve, and that that will become more obvious as 2014 goes on. We

:08:31.:08:36.

just saw their how they will fight the campaign. Yes, and at the

:08:37.:08:42.

crucial moment, you will reach the point where wages. To rise at a

:08:43.:08:47.

faster pace than inflation, and then people will start to, in the words

:08:48.:08:51.

of Harold Macmillan, feel that they have never had it so good. That is

:08:52.:08:57.

the key moment. If the economy is growing, there is a rule of thumb

:08:58.:09:05.

that the government should get a benefit. But it doesn't always work

:09:06.:09:08.

like that. The fundamental point here is that Ed Miliband has had a

:09:09.:09:11.

great month. He has totally set the agenda. He has set the agenda with

:09:12.:09:17.

something - freezing energy prices - that may not work. That video shows

:09:18.:09:22.

that the Conservatives want to get the debate back to the

:09:23.:09:25.

fundamentals. That this is a party that told us for three years that

:09:26.:09:32.

this coalition was telling us to -- was taking us to hell on a handcart.

:09:33.:09:38.

That doesn't seem to have happened. The energy price was a very clever

:09:39.:09:45.

thing, at the party conference season, which now seems years ago.

:09:46.:09:49.

They saw that the recovery was going to happen, so they changed the

:09:50.:09:55.

debate to living standards. Some economists are now privately

:09:56.:10:00.

expecting growth to be 3% next year, which was inconceivable for five

:10:01.:10:05.

months ago. If growth is 3% next year, living standards will start to

:10:06.:10:07.

rise again. Where does Labour go then? I would go further, and say

:10:08.:10:14.

that even though Ed Miliband has made a small political victory on

:10:15.:10:18.

living standards, it hasn't registered in the polls. Those polls

:10:19.:10:25.

have been contracted since April -- have been contracting since April.

:10:26.:10:29.

That macro economic story matters more than the issue of living

:10:30.:10:34.

standards. The interesting thing about the recovery is it confounds

:10:35.:10:38.

everybody. No one was predicting, not the Treasury, not the media not

:10:39.:10:44.

the IMF, not the academics, and the only people I can think of... I fit

:10:45.:10:51.

-- I thought they knew everything! The only people I know who did are

:10:52.:10:57.

one adviser who is very close to George Osborne, and the clever hedge

:10:58.:11:00.

fund is who were buying British equities back in January. Because

:11:01.:11:05.

the Treasury's record is so appalling, no one believe them, but

:11:06.:11:09.

they were saying around February, March this year, that by the end of

:11:10.:11:14.

the summer, the recovery would be gathering momentum. For once, they

:11:15.:11:23.

turned out to be right! They said that the economy would be going gang

:11:24.:11:26.

bust is! Where did the new Tory voters come from? I agree, if the

:11:27.:11:33.

economic recovery continues, the coalition will be stronger. But

:11:34.:11:42.

where will they get new voters from? For people who sign up to help to

:11:43.:11:47.

buy, they will be locked into nice mortgages at a low interest rate,

:11:48.:11:51.

and just as you go into a general election, if you are getting 3%

:11:52.:11:57.

growth and unemployment is down the Bank of England will have to review

:11:58.:12:00.

their interest rates. People who are getting nice interest rates now may

:12:01.:12:04.

find that it is not like that in a few months time. The point John

:12:05.:12:11.

Major was making implicitly was that Mrs Thatcher could speak to people

:12:12.:12:15.

on low incomes. John Major could not speak to them -- John Major could

:12:16.:12:21.

speak to them. But this coalition cannot speak to them. This idea

:12:22.:12:25.

about the reshuffle was that David Cameron wanted more Northern voices,

:12:26.:12:33.

more women, to make it look like it was not a party of seven men. When

:12:34.:12:38.

David Cameron became leader, John Major said, I do not speak very

:12:39.:12:43.

often, but when I do, I will help you, because I think you are good

:12:44.:12:47.

thing and I do not want to be like Margaret Thatcher. But that speech

:12:48.:12:51.

was clearly a lament for the party he believed that David Cameron was

:12:52.:12:56.

going to lead and create, but that isn't happening. And energy prices

:12:57.:13:02.

continue into this coming week. We have the companies going before a

:13:03.:13:07.

select committee. My information is they are sending along the secondary

:13:08.:13:11.

division, not the boss. How can they get along -- get away with that I

:13:12.:13:16.

got the letter through from British Gas this week explaining why my

:13:17.:13:21.

bills are going up, and at no point since this became a story have any

:13:22.:13:25.

of the big companies handled it well. I will have to leave it there.

:13:26.:13:30.

Make sure you pay your bill! That's it for today. The Daily Politics is

:13:31.:13:37.

back on BBC Two tomorrow. I will be back here on BBC One next Sunday.

:13:38.:13:44.

Remember, if it's Sunday, it is The Sunday Politics.

:13:45.:13:51.

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