15/09/2013

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:00:25. > :00:50.after the summer recess, and the party conference season is already

:00:50. > :00:55.upon us. First, the Liberal Democrats. Have a great conference.

:00:55. > :01:01.Nick Clegg has some convincing to do, according to our very own Sunday

:01:01. > :01:05.Politics poll, his troops don't like his coalition bedmates. The latest

:01:05. > :01:12.poll of the country also has the Lib Dems languishing behind UKIP in

:01:12. > :01:17.fourth place, with only 9%. Paddy Ashdown! So can the Lib Dems

:01:17. > :01:23.claw their way back, come the election in 2015? We will talking to

:01:23. > :01:26.former leader, now the party's general election commander-in-chief,

:01:26. > :01:28.Paddy Ashdown. George Osborne is a happy bunny

:01:28. > :01:37.Later in the programme, chicken feed these days,

:01:37. > :01:41.Later in the programme, chicken feed dashed that is how the Welsh

:01:41. > :01:42.Conservative Assembly leader describes previous budget deals with

:01:42. > :01:44.the Welsh describes previous budget deals with

:01:44. > :01:55.now heading for the exit. We will hear from Nick Clegg on what it

:01:55. > :01:59.signifies. And freshly showered from the Great

:01:59. > :02:03.North Run and looking as fresh as daisies, the best and brightest

:02:03. > :02:08.political panel in the business. Janan Ganesh, Helen Lewis and Iain

:02:08. > :02:11.Martin, who will be tweeting throughout the programme.

:02:11. > :02:15.Now, their leader is our Deputy Prime Minister. They are the junior

:02:15. > :02:19.partners of our coalition government. They like the colour

:02:19. > :02:22.yellow and they have not won a general election since dinosaurs

:02:22. > :02:26.walked the earth. Now they are behind UKIP in the polls, so as the

:02:26. > :02:33.party gathers for its annual bash this year in Glasgow, what is on

:02:33. > :02:35.their mind? Who are the people gathering at the Clyde this weekend?

:02:36. > :02:40.their mind? Who are the people Before they started drinking, we

:02:40. > :02:45.surveyed 580 Liberal Democrat councillors in England and Wales,

:02:45. > :02:52.with the help of some pollsters, comrade. The first question we asked

:02:52. > :02:55.was, if the next election results in a hung parliament, which team would

:02:55. > :02:58.you rather go into coalition with, the Reds or the blues? Lib Dem

:02:58. > :03:04.councillors said Labour, two to one. the Reds or the blues? Lib Dem

:03:04. > :03:13.Tories or Labour? It is not for us the Reds or the blues? Lib Dem

:03:14. > :03:21.to say. It is for the voters to say. We will decide depending on

:03:21. > :03:23.what the voters tell us. Your councillors favoured a coalition

:03:23. > :03:36.with Labour. Well, it depends what is on the table. Who would you

:03:36. > :03:43.rather play table football against? I would rather play against you,

:03:43. > :03:47.because I am winning. So in the Lib Dems shop, which policies are

:03:47. > :03:50.winning 's which ones are heading for the bargain bin? The most

:03:50. > :03:52.winning 's which ones are heading popular policy was a mansion tax on

:03:52. > :03:58.house is worth more than £2 million, popular policy was a mansion tax on

:03:58. > :04:03.which was supported by 80 -- 86% of councillors. The next most popular

:04:03. > :04:07.policy was scrapping the Trident councillors. The next most popular

:04:07. > :04:11.nuclear deterrent, supported by 72% of councillors. Then there was the

:04:11. > :04:16.nuclear deterrent, supported by 72% reinstatement of the 50p top rate of

:04:16. > :04:20.income tax. 70% of councillors like the look of that. When it came to

:04:20. > :04:24.the idea of banning the burka in public places like schools and

:04:24. > :04:32.airports, 45% of councillors were in favour. Finally, a ban on topless

:04:32. > :04:37.Page three model is won the support of 33% of councillors. Why is it so

:04:37. > :04:44.popular, the idea of a mansion tax? It is a much fairer tax. We know

:04:44. > :04:49.there are people out there with very expensive houses. Which of these is

:04:49. > :04:56.most important to you? Banning Trident. The cold war ended in

:04:56. > :05:01.1989. Another one was the idea of banning the burka in public places.

:05:01. > :05:03.No, I feel people should wear whatever they like. If they want to

:05:03. > :05:09.No, I feel people should wear wear the birth or a kilt or if they

:05:09. > :05:18.want to be naked or not wear anything. We are the party of jobs.

:05:18. > :05:23.Thank you. Last night, a fully clothed Nick Clegg rallied his

:05:23. > :05:28.troops, but if he was not around, who would Lib Dem councillors want

:05:28. > :05:34.instead? Business Secretary Vince Cable was most popular, with a third

:05:34. > :05:40.of the votes. In second place, the party's president, Tim Farron, with

:05:40. > :05:43.27%. 10% went to Danny Alexander, Chief Secretary to the Treasury,

:05:43. > :05:48.while the business minister Joe Swinson received 7%. The Energy

:05:48. > :05:56.Secretary Ed Davey scooped 6%, and in last place, Steve Webb, the

:05:56. > :06:00.pensions minister, who got 5%. If any of these councillors want to

:06:00. > :06:06.talk to me about it, I would be delighted to hear from them. Is that

:06:06. > :06:12.a bid for a leadership campaign? It certainly isn't. What do you think

:06:12. > :06:15.of these? That is quite a collection. These are the

:06:16. > :06:22.contenders. But our survey is not the only one that has got tongues

:06:22. > :06:23.wagging in Glasgow, because the Lib Dem leadership have commissioned

:06:23. > :06:25.their own poll which showed that 75% Dem leadership have commissioned

:06:25. > :06:29.of the country will never vote Dem leadership have commissioned

:06:29. > :06:31.the party, no matter what they do. Also meeting here this weekend, this

:06:31. > :06:37.the party, no matter what they do. group of bikers. But Liberal

:06:37. > :06:44.Democrats like to think they have got just as much va-va-voom, even if

:06:44. > :06:54.a big chunk of the country doesn't. Add, back in his hometown. So, the

:06:54. > :06:55.Lib Dems are on 9% in the polls. Much of their party thinks they are

:06:55. > :06:59.Lib Dems are on 9% in the polls. moving in the wrong direction.

:06:59. > :07:02.Earlier, I spoke to former party moving in the wrong direction.

:07:02. > :07:05.leader Paddy Ashdown. He has been put in charge of heading up the 2015

:07:05. > :07:11.leader Paddy Ashdown. He has been election campaign. I asked him if

:07:11. > :07:17.the mood in Glasgow was grim. No. In many ways, as you know, Tory old

:07:17. > :07:21.commentator that you are just as I am a hoary old member at the other

:07:21. > :07:27.end of the camera, we have been there, done that and got the

:07:27. > :07:31.T-shirt. Where you are in the midterm of a government, especially

:07:31. > :07:35.when you are in government and the country is going for in a deep

:07:35. > :07:40.economic crisis, has almost no relevance to where you might be when

:07:40. > :07:45.the nipple come to consider how they will vote in 600 days time -- when

:07:45. > :07:50.the people come to consider how they will vote. We do not dismiss polls,

:07:51. > :07:54.but they are a snapshot of what is happening now and give little

:07:54. > :07:58.indication of where we will be. My guess is, for what it is worth, that

:07:58. > :08:01.as we come to the election, the public will be in a very serious,

:08:01. > :08:09.probably frightened mood. Their main public will be in a very serious,

:08:09. > :08:12.thoughts will be, who maintains my job, makes sure I don't have to pay

:08:12. > :08:19.thoughts will be, who maintains my to higher mortgage? The coalition

:08:19. > :08:23.has delivered not only the required policies to make Britain's economy

:08:23. > :08:29.prosperous, but also its society fair. That is what people will want

:08:29. > :08:33.to see. I think coalition politics are here to stay and we have a role

:08:34. > :08:38.to play in it. But you are in a grim mood this morning. You tweeted that

:08:38. > :08:41.you were not happy with how the Observer newspaper handled your

:08:41. > :08:46.interview. What was the problem? Is there anything we can do to help?

:08:46. > :08:53.There is probably something they could do to help. I have no

:08:53. > :08:57.arguments with the interview. The headline they chose to put on it

:08:57. > :09:01.late last night was outrageous, misrepresentative and in one case in

:09:01. > :09:04.accurate. What was the headline? Something about Ashdown wants a

:09:04. > :09:10.coalition with the Tories, or at Something about Ashdown wants a

:09:10. > :09:16.least they gave that in for us -- inference. Let me make this point.

:09:16. > :09:22.We are coming up to the next election. I am in charge of the

:09:22. > :09:26.campaign. Any journalist who in these next two years says that any

:09:26. > :09:31.Liberal Democrat prefers anything else in terms of the outcome of a

:09:31. > :09:34.coalition but the result of the ballot box dictating that outcome,

:09:34. > :09:38.that any prefer one side to another over and they want to see a

:09:38. > :09:42.that any prefer one side to another coalition determined by the electors

:09:42. > :09:46.that any prefer one side to another in the votes, will get a bloody hard

:09:46. > :10:08.time from me, no matter who they are. We take the warning. A survey

:10:08. > :10:09.of Lib Dem councillors shows that in the event of another hung

:10:09. > :10:11.parliament, only 16% of your the event of another hung

:10:11. > :10:13.councillors want to renew the coalition with the Tories. That is a

:10:13. > :10:15.councillors want to renew the clear sign that your activists want

:10:15. > :10:18.a change of direction. I don't think it is news that as a left-wing

:10:18. > :10:21.party, we find it more congenial with those on the left wing, but

:10:21. > :10:23.that is not the issue. You saw it was not the issue at the last

:10:23. > :10:26.election. We are servants of the ballot box. We do watch the British

:10:27. > :10:29.people require us to do to provide a stable government in the interests

:10:29. > :10:31.of our country. I am sure you have got the point by now. I have fought

:10:31. > :10:34.of our country. I am sure you have the Tories all my life. But when

:10:34. > :10:37.Labour run away from the Tories all my life. But when

:10:37. > :10:42.responsibility to amend the economic crisis, was this right for the

:10:42. > :10:46.country? That is what drives me. Let me say again. The people will

:10:46. > :10:53.determine who are going to be in any coalition, should there be one, the

:10:54. > :10:59.voters and nobody else. It is not about what we like. I understand

:11:00. > :11:03.that. But your own internal polls show that Mr Clegg and the

:11:03. > :11:10.leadership are not taking the party with them on that. I don't think

:11:10. > :11:14.that is true. Nick Clegg has done what no other party leader has done.

:11:14. > :11:19.He took the coalition agreement to the party, and they voted for it. So

:11:19. > :11:23.it is not true to say that members of the party are moving in a

:11:23. > :11:27.different direction. I think we are extraordinarily united. I did not

:11:27. > :11:31.expect them to be so under these pressures, but they have surprised

:11:31. > :11:34.me and made me joyful at the same time. The party has done what it

:11:34. > :11:39.needs to do. This is what time. The party has done what it

:11:39. > :11:44.done in local government for a long time. We may have our private likes

:11:44. > :11:50.and dislikes, but the thing that time. We may have our private likes

:11:50. > :11:55.dictates the formation of a coalition is the ballot box. You

:11:55. > :12:01.have said that three times. I can say it again if you like. Please

:12:01. > :12:02.don't! What if your party votes to reinstate tuition fees as party

:12:02. > :12:12.policy afternoon? We will have to reinstate tuition fees as party

:12:12. > :12:16.listen to that and act accordingly. You must listen to the voice of the

:12:16. > :12:21.party and take it into account in what you do. I am always quite

:12:21. > :12:26.careful, as you know, about answering hypothetical questions. I

:12:26. > :12:31.don't think it is likely to happen, but if it did, we would have to do

:12:31. > :12:34.consider it. I thought what distinguished Lib Dems was that if

:12:34. > :12:41.your party conference voted for something, it was in the manifesto.

:12:41. > :12:45.The manifesto is taken in its final form before the party for decision.

:12:45. > :12:50.The party will express views at this stage in all sorts of ways. It did

:12:50. > :12:54.in my leadership, too. The manifesto is democratically agreed by the

:12:54. > :12:59.party at the time of the election, not before. The Tory conference will

:13:00. > :13:03.be about how they think they have been vindicated, that austerity has

:13:03. > :13:08.worked, the economy is turning a corner. But Nick Clegg's conference

:13:08. > :13:14.announcements will be about plastic bags. Have you got the hang of this

:13:14. > :13:19.coalition think? Andrew, you can always be guaranteed to put things

:13:19. > :13:26.in the most discreditable form! That is part of your charm. That was

:13:26. > :13:33.about to be a minor announcement in the middle of his speech. But it was

:13:33. > :13:37.discovered beforehand. It has not been very popular in terms of how it

:13:37. > :13:42.has been received, but that is not the central message. That leads me

:13:42. > :13:48.to what I think is the biggest danger you face at the next

:13:48. > :13:53.election. Isn't the biggest danger that the Tories, not you, if there

:13:53. > :14:04.is an economic recovery, they will get the credit for it? I don't think

:14:04. > :14:06.that is true. By the way, I don't think the electorate does gratitude.

:14:06. > :14:10.The only time people cast a thank you vote was probably for Mrs

:14:10. > :14:13.Thatcher over the sale of council houses. We could have a different

:14:13. > :14:21.discussion over whether that was a good idea. But what you have done is

:14:21. > :14:22.the underpinning for the promise of what you will do. In this

:14:22. > :14:31.government, we have stayed firm on a what you will do. In this

:14:31. > :14:40.very tough economic policy. But will you get the credit? What we have

:14:40. > :14:44.done by ourselves, which the Tories would never have done, is make sure

:14:44. > :14:49.that when the pain is felt, it is not the poor who feel it. We have

:14:49. > :14:53.seen the biggest shift of taxation, lifting the poorest in the country

:14:53. > :15:00.out of taxation, that has ever happened, including in the previous

:15:00. > :15:05.Labour government. You are presiding over the biggest squeeze on living

:15:05. > :15:13.standards in modern times. Because it is the biggest recession in

:15:13. > :15:16.modern times. When you speak to the 2.5 million people who have been

:15:16. > :15:22.lifted out of taxation altogether because of the Liberal Democrats,

:15:22. > :15:31.speak to those who have had a £400 tax cut. You may be able to make the

:15:31. > :15:34.speak to those who have had a £400 connection, Andrew, you are a sharp

:15:34. > :15:38.observer, between a very deep economic crisis and difficulty for

:15:38. > :15:42.everybody. But it is clear that if the Tories had been by themselves,

:15:42. > :15:46.none of that would have happened. We have sought to shift the burden away

:15:47. > :15:49.from the poorest in this country. I am part of that. So when we go into

:15:49. > :15:53.the next election, the message will am part of that. So when we go into

:15:53. > :15:58.be that if you want to continue to have a prosperous economy and a

:15:58. > :16:07.society, only the Liberal Democrats will deliver that. Tim Farron says

:16:07. > :16:11.he likes Ed Miliband and he does not want to diss him. Can you confirm

:16:11. > :16:16.that there will be no dissing of Ed Miliband? It is not much my style.

:16:17. > :16:22.I've never much liked comments about the other leaders. I do not intend

:16:22. > :16:29.to make it so in the future. Can I'd finish up on Syria? You said after

:16:29. > :16:35.the Syria vote that Britain was a hugely diminished country. Given it

:16:35. > :16:38.was the British Parliament that said both sides on a course which could

:16:38. > :16:42.now see Syria give up chemical weapons without records to military

:16:42. > :16:45.action, would you like to withdraw these remarks and admit that you

:16:45. > :16:53.should be proud and happy with what Britain has done? No. You and I both

:16:53. > :16:58.know, because we are old observers, that that would never have happened

:16:58. > :17:01.unless there had been an underpinning of a threat to use

:17:01. > :17:06.force. The British Parliament resigned from that. We have no part

:17:06. > :17:08.to play in the fact that Assad and Putin have moved towards peace for

:17:08. > :17:09.to play in the fact that Assad and fear of military action. We decided

:17:10. > :17:14.not to be part of that. It is fear of military action. We decided

:17:14. > :17:17.exactly the opposite. Why would have liked to have seen our country join

:17:17. > :17:25.in with those who are serious about upholding an international law which

:17:25. > :17:31.has restrained even than axes and talent, but instead we resigned and

:17:31. > :17:38.left others to make sure that we moved towards peace. -- even the

:17:38. > :17:43.Maxis and Stalin. But if it had not been for the British Parliament, we

:17:43. > :17:49.would not have had the time to allow this to happen. It has avoided war.

:17:49. > :17:56.Job done, British Parliament. That would be true if it was accurate but

:17:57. > :18:02.it is not. The resolution proposed a delay, that we should wait until the

:18:02. > :18:03.inspectors came back. That time frame was absolutely nothing to do

:18:03. > :18:09.inspectors came back. That time with the parliamentary vote. The

:18:09. > :18:11.vote was going to incorporate that. I do not think you can claim what

:18:11. > :18:16.vote was going to incorporate that. you claim. In the Balkans, I

:18:16. > :18:19.remember that diplomacy, which was not reinforced by the threat of

:18:19. > :18:25.military action, does not work. It is when diplomacy runs with a grain

:18:25. > :18:28.of military action that it works. And if you want a fantastic

:18:28. > :18:32.illustration of that, look at what is happening over the last two

:18:32. > :18:36.weeks. By regret to say that our country, which has always been in

:18:36. > :18:43.favour of engagement and not disengagement, had no part to play

:18:43. > :18:46.in that. They give a joining us, Paddy Ashdown. Enjoy my old

:18:46. > :18:55.university city. And you we would get to the Balkans

:18:56. > :19:00.eventually, and we did. His biggest challenge is if the economy is

:19:00. > :19:03.looking reasonably good by 2015, to get some credit for the Lib Dems,

:19:03. > :19:08.when the Tories will want to halt it all. But his position is not to be

:19:08. > :19:12.the necessary axeman. That is George Osborne's role. Their role is to be

:19:12. > :19:16.the chaser party, taking the edge off. They will because of me going

:19:16. > :19:20.on about the pupil premium and racing people out of income tax.

:19:20. > :19:25.That is what you will hear from them, how they have taken the edge

:19:26. > :19:29.of the cuts. Will that work? They are in a pretty good position. Even

:19:29. > :19:33.if they have lost two thirds of the popular support, according to the

:19:33. > :19:37.polls, I do not know anyone in Westminster methinks that will be

:19:37. > :19:41.matched in their parliamentary representation. If they have 56 MPs

:19:41. > :19:48.now, they might lose a dozen but they will not be decimated.

:19:48. > :19:52.Strategically, they are in a better position than the reading of the

:19:52. > :19:55.polls would tell you. I think Nick Clegg's survival has been one of the

:19:55. > :20:02.stories of this Parliament. He is looking good at the comfort -- at

:20:02. > :20:07.the conference. When he was at his lowest after the AV referendum,

:20:07. > :20:10.people were saying he would survive and lead us into 2015 and beyond and

:20:10. > :20:15.I thought that was fanciful. Believe it or not... Paddy Ashdown was

:20:15. > :20:22.wrong, you were wrong and... I wasn't. I'm underestimated how bad

:20:22. > :20:27.his rivals are. If you are Lib Dem member, however aggrieved you are

:20:27. > :20:31.with Nick Clegg, you do not think, wouldn't it be great if Christian

:20:31. > :20:38.was in charge? Nick Clegg is the best they have. -- Chris Huhne was

:20:38. > :20:41.in charge. Of course, the people do not vote for the coalition

:20:41. > :20:45.government and it is a consequence of the way they vote, a different

:20:45. > :20:50.matter. If Janan Ganesh is right, and they lose 15 seats in the next

:20:50. > :20:54.election, they could be still pivotal in the next government. It

:20:55. > :20:58.could be. But there is a danger. Possibly the most amusing outcome

:20:58. > :21:01.would be a Labour or Tory overall majority, which would be hilarious

:21:01. > :21:07.for the look on Paddy Ashdown's face. The danger is they get trapped

:21:07. > :21:12.constantly in talking about the politics of coalition and of a hung

:21:12. > :21:17.parliament. And they are very puffed up and they enjoy Parliament and

:21:17. > :21:20.they will enjoy the next one, but up and they enjoy Parliament and

:21:20. > :21:25.there is a possibility they will not be. While they are talking about the

:21:25. > :21:28.Polish and themselves, they are not talking about the issues facing the

:21:28. > :21:35.country. -- talking about the coalition. It was interesting that

:21:35. > :21:39.he said that we are a left-wing party, not a centre-left party or a

:21:39. > :21:46.centre party, but a left-wing party. I'm going to put myself in the

:21:46. > :21:49.firing line and say that there is a big split between the Tim Farron

:21:49. > :21:53.firing line and say that there is a line who say they like Ed Miliband,

:21:53. > :21:56.and another one, Jeremy Browne in the Home Office saying that Labour

:21:57. > :22:05.are intellectually lazy. The risk clearly a clique around Nick Clegg

:22:06. > :22:08.who wants to be a synthetic party, but that is not where the membership

:22:08. > :22:12.who wants to be a synthetic party, and broad base is. The real

:22:12. > :22:17.activists are clearly of the left, not just the centre-left. They are

:22:17. > :22:22.very pro-immigration and they want to get rid of Trident. Mr Clegg's

:22:22. > :22:26.strategy has to be to take the party to the centre. The something not

:22:26. > :22:28.happen at some stage? The poll suggests it is a left-wing party.

:22:28. > :22:33.happen at some stage? The poll Very left-wing. Other think the poll

:22:33. > :22:41.would have yielded -- would have yielded the same results before the

:22:41. > :22:44.2010 election. This is reflected by the arithmetic. Whichever party is

:22:44. > :22:49.biggest will most likely be the ones in coalition with the Lib Dems. Nick

:22:49. > :22:58.Clegg's on latitude to choose is exaggerated by us. The choice is no

:22:58. > :23:03.tears, it is written into parliamentary arithmetic. But if you

:23:03. > :23:09.remember the structure of the Lib Dems, they can tie themselves up in

:23:09. > :23:15.infighting. -- the choice is not ours. They are fundamentally

:23:15. > :23:18.stable. And Nick Clegg has had a good conference last year, and will

:23:18. > :23:22.have another one this year. The economy is better than it was a year

:23:22. > :23:27.ago. It could still go quite well for him. Yes, it is one of the

:23:27. > :23:29.ago. It could still go quite well stories of this Parliament, his

:23:29. > :23:34.survival and the way in which he has prospered. But there are a lot of

:23:34. > :23:37.people out there, students, campaigners, labour activists who

:23:37. > :23:41.have not forgotten what he has done in government and are determined to

:23:41. > :23:47.get him. It will be a tough year and a half. Tougher than he imagined.

:23:47. > :23:50.Now, not so long ago they were writing George Osborne's political

:23:50. > :23:55.obituary. Be on the Omni shambles budget of 2012 and a lacklustre

:23:55. > :24:03.performance of the British economy meant his reputation work -- was in

:24:03. > :24:06.the dirt. -- the omnishambles. But things have changed. The Chancellor

:24:06. > :24:11.is saying he has been vindicated. If true, we're do that leave his

:24:11. > :24:15.critics? At your stuck on the runway, it looks as though the

:24:15. > :24:18.British economy has taken off, growing by 0.7% in

:24:18. > :24:21.British economy has taken off, quarter. Forecasts for the rest of

:24:21. > :24:25.the year have been revised up words. What's more, the office for National

:24:25. > :24:31.statistics says that the double-dip recession never actually happened.

:24:31. > :24:33.Unemployment is down in the three months to July and the number of

:24:33. > :24:36.people claiming jobseeker's months to July and the number of

:24:36. > :24:40.allowance is falling at its months to July and the number of

:24:40. > :24:44.spasticity rate since 1997. On Monday, George Osborne said his

:24:44. > :24:50.policies were bearing fruit. We held our nerve when many told us to

:24:50. > :24:54.abandon our plans. As a result, thanks to the efforts and sacrifices

:24:55. > :25:01.of the British people, Britain is turning a corner. The message for

:25:01. > :25:06.his Labour critics was clear. The Chancellor thinks he was right and

:25:07. > :25:08.they were wrong. And Chuka Umunna joins me now for the Sunday

:25:08. > :25:19.interview. Good afternoon. Good afternoon.Do

:25:19. > :25:23.you accept that the economy has turned a corner? I think it is good

:25:23. > :25:25.that a stalled recovery appears to have come back to life, but let's

:25:25. > :25:29.that a stalled recovery appears to get this in perspective. We have had

:25:29. > :25:35.three wasted years. We have the worst economic recovery in history.

:25:35. > :25:39.Debt is up and we have record youth unemployment. If you ask your

:25:39. > :25:43.viewers who are watching this programme if they feel better or

:25:43. > :25:48.worse off, compared to 2010, the majority will tell you they feel

:25:48. > :25:55.worse because, on average, wages are down by £1500 compared to May of

:25:55. > :25:58.2010. That is the situation. The questionnaires, what is the

:25:58. > :26:03.government going to do about it? And one of the things we have seen

:26:03. > :26:07.talked about, Vince Cable has been talking about this as well, is what

:26:07. > :26:11.is happening in the housing market. It seems that much of the solution

:26:11. > :26:16.to powering the recovery in the eyes of George Osborne lies in sorting

:26:16. > :26:19.out the housing market but the problem is, we are at risk of being

:26:19. > :26:21.out the housing market but the another housing bubble. Because of

:26:21. > :26:26.out the housing market but the research that came out this week, we

:26:26. > :26:28.know that housing in the UK is three times more expensive than in the US.

:26:28. > :26:32.know that housing in the UK is three We know that house prices are rising

:26:32. > :26:36.five times faster than wages, but we also know that the government is

:26:36. > :26:40.five times faster than wages, but we building new housing at a slower

:26:40. > :26:46.rate, the slowest rate that we have seen since the 1920s. Labour

:26:46. > :26:53.complaining about a housing bubble, isn't that like Satan complaining

:26:53. > :26:56.about seven? -- seven. We all know that we cannot go back to business

:26:56. > :27:02.as usual. We need to build a new model of growth. But the housing

:27:02. > :27:07.bubble you talk about, it is not a bubble. It might turn into one. I

:27:07. > :27:10.said the risk of a bubble. It is nothing like what happened on the

:27:10. > :27:13.labourer when the prices soared. As I said, in 2009, we had the crash

:27:13. > :27:17.labourer when the prices soared. As and we knew we needed to reconfigure

:27:17. > :27:22.the way that our economy works. Having an economy based on crisis is

:27:22. > :27:27.not a good thing. We need to rebalance the economy. We saw the

:27:27. > :27:30.unemployment statistics this week, and it is welcomed overall, that

:27:30. > :27:36.climate has come down -- unemployment has come down. At half

:27:36. > :27:42.of the UK has seen unemployment go up. And it went down in other parts.

:27:42. > :27:49.We know that we need to rebalance our economy, so that we do not just

:27:49. > :27:53.rely on consumption, but that we grow our productive sectors. And

:27:53. > :28:01.also that we grow our exports as well. We know we have a continuing

:28:01. > :28:12.deficit. We always have a trade deficit. There was never a trade

:28:12. > :28:15.surplus under Labour. Want to come onto what you have mentioned but

:28:15. > :28:19.would you scrap the help to buy scheme? We have not said that we

:28:19. > :28:25.would do that. Why not if it is causing the bubble? If you let me

:28:25. > :28:31.finish, on one hand what that scheme does at the moment, at the moment it

:28:31. > :28:36.is inhalation to a new scheme but tomorrow -- next year it will be in

:28:36. > :28:39.relation to the existing scheme. If you do not sort out the supply of

:28:39. > :28:44.housing, then that is a recipe for the problems we have seen. Our

:28:44. > :28:47.argument is build more houses. Help more people to buy them by all means

:28:47. > :28:53.but if you do not have the supply you will end up with rising prices.

:28:53. > :28:56.That is obvious. Labour said that government austerity would prevent

:28:56. > :29:01.the return of growth. Austerity is still with us but so is growth. You

:29:01. > :29:02.were wrong. We never said that growth would never return. What we

:29:02. > :29:06.said was that if you went for an growth would never return. What we

:29:06. > :29:08.overly extreme deficit reduction package, you would choke the

:29:08. > :29:14.recovery and you would choke growth. package, you would choke the

:29:14. > :29:22.That is what we saw for three years. If you say, look at the US economy,

:29:22. > :29:27.it has grown at three times the rate of the UK economy. The German

:29:27. > :29:29.economy has grown at twice the rate. But the British economy is growing

:29:29. > :29:34.quicker than the American or German economy is now. But over time we

:29:34. > :29:41.have not seen that happen. But it is now. That may be the case. But my

:29:41. > :29:45.point is that those three years saw people undergoing huge stress and

:29:45. > :29:49.worry. It is good that we have growth back again but the question

:29:49. > :29:55.is, what kind of growth? What we have said... I'm going to come onto

:29:55. > :29:56.that but your credibility depends on your previous analysis. And there

:29:56. > :30:01.that but your credibility depends on are doubts about it. This is what

:30:01. > :30:06.you said not that long ago. In 2012. Our economy has flat lined

:30:06. > :30:31.near the 0% mark... You and the Labour Party said it had

:30:31. > :30:36.choked off growth. You were wrong. We were not wrong, because we had

:30:36. > :30:40.three years where the economy was not moving. Let's remind ourselves.

:30:40. > :30:44.Claude Osborne was predicting that the economy was going to grow by

:30:44. > :30:50.6.9% between the start of this Parliament and now. It has grown by

:30:50. > :30:57.1.8%. We did not say we would never have a return to growth. You never

:30:57. > :31:01.said that austerity would only temporarily delay growth. We have

:31:02. > :31:06.looked through your speeches and Ed Balls'. We can't find any reference

:31:06. > :31:14.to say this is simply delaying the recovery. You said austerity would

:31:14. > :31:18.choke off growth. If that is true, why has it returned now? Did we say

:31:18. > :31:27.it would choke off growth for ever? why has it returned now? Did we say

:31:27. > :31:31.We did not. You have changed your tune. I think your package at the

:31:31. > :31:36.top of this programme, to frame this around George Osborne, this is not a

:31:36. > :31:40.Westminster soap opera, it is people's lives, and the people who

:31:40. > :31:46.deserve huge credit for the growth we are seeing are our country's

:31:47. > :31:50.businesses, who despite the tough economic times, have succeeded. They

:31:50. > :31:56.are the ones who have powered this growth. It is not for us in

:31:56. > :32:02.Westminster to take credit. But you blame the government for lack of

:32:02. > :32:06.growth. So therefore, when the growth comes, the government has to

:32:06. > :32:10.take some credit. Look at the situation Britain is in now. We know

:32:10. > :32:16.the recovery still has to reach many parts of the country, but this is

:32:16. > :32:25.the OECD annualised growth in the G-7, the world's guest economies.

:32:25. > :32:31.That is looking pretty healthy. That is a recovery. I am not denying that

:32:31. > :32:33.That is looking pretty healthy. That we are seeing a stalled recovery,

:32:33. > :32:39.That is looking pretty healthy. That but who benefits from the growth? On

:32:39. > :32:48.average, your viewers have sustained a £1500 pay cut. That is the second

:32:48. > :32:55.biggest fall in the G20 since May 2010. Because we had the biggest

:32:55. > :32:59.financial services sector and took the biggest crash. Financial

:32:59. > :33:07.services are still in decline. Financial services are about 10% of

:33:07. > :33:13.the economy. They are not the only contributor to the economy. The

:33:13. > :33:17.point is, who benefits? Unemployment is falling, but we don't just want

:33:17. > :33:21.people to have any job, we want them to have decent jobs that pay a

:33:21. > :33:28.weight you can live off and that are more secure. Let me show you the

:33:28. > :33:34.unemployment figures. Your criticism has been that all the new jobs are

:33:34. > :33:37.part-time. They are not now, they are full-time. Full-time

:33:38. > :33:46.unemployment, up -- full-time employment, up 94,000. This is a

:33:47. > :33:51.short time frame. It is since the recovery began. Half the jobs that

:33:51. > :33:57.have been created since May 2010 have been part-time jobs. Roughly

:33:57. > :34:02.107,000 people are working part-time who would like to work full-time.

:34:02. > :34:04.Over the last 20 years, people now feel more insecure at work than

:34:04. > :34:08.ever. The question is about what feel more insecure at work than

:34:08. > :34:14.kind of growth and employment you are getting. The other point is the

:34:14. > :34:22.uneven spread of this across our economy. In places like the

:34:22. > :34:30.north-east and north-west, the Humber, the east of England, they

:34:30. > :34:34.have seen unemployment increase. I agree that there was a regional

:34:34. > :34:40.imbalance, but the service sector is growing, cheering and construction

:34:40. > :34:45.are growing and financial services are in decline, so the rebalance is

:34:45. > :34:49.happening. It is not happening to the degree we need to transform our

:34:49. > :34:54.economy so that we have a long-term, sustainable model of

:34:54. > :34:56.growth. That is why we need a comprehensive industrial strategy

:34:56. > :35:05.that all of government works towards. Your party conference is

:35:05. > :35:09.coming up. I am sure you are looking forward to it. Why do Ed Miliband's

:35:09. > :35:21.approval ratings get worse the more people see of him? I don't accept

:35:21. > :35:26.that. I have given you the figures. Polls go up and down. I have said

:35:26. > :35:34.that on this programme before. But his approval rating has consistently

:35:34. > :35:35.gone down. What actually matters our votes. Under Ed Miliband's

:35:35. > :35:39.leadership, the Labour Party have votes. Under Ed Miliband's

:35:39. > :35:51.put on almost 2000 extra councillors in places like Canada case, even

:35:51. > :35:57.Whitney. What is wrong with Whitney? We have been putting on votes. Let

:35:57. > :36:01.me show you this. This is the net satisfaction rating. Your leader is

:36:01. > :36:07.now more unpopular than Gordon Brown was when he took Labour to the worst

:36:07. > :36:14.defeat in living memory. Gordon Brown did not put on anything like

:36:14. > :36:21.this number of councillors. Votes are what matter, Andrew. Few people

:36:21. > :36:26.think Ed Miliband is a capable leader. Twice as many people think

:36:26. > :36:32.over Spurs who lives on the moon. These are polls. If you are talking

:36:32. > :36:39.to me about over Spurs lit, that puts this into context, Europe

:36:39. > :36:44.session with polls! -- Elvis Presley. Since 2010, we have put on

:36:44. > :36:48.thousands of members. Compare that to the Conservative Party, which has

:36:48. > :36:59.not won a general election since 1992. They will not disclose their

:36:59. > :37:03.membership figures. Why -- why won't you pledge to renationalise Royal

:37:03. > :37:06.Mail? Because that would be like writing a blank cheque. We don't

:37:06. > :37:09.know at the moment how much the government would receive for the

:37:09. > :37:14.sale of Royal Mail? So how can I judge how much it would cost to buy

:37:14. > :37:17.it back? That would be irresponsible. But the government

:37:17. > :37:24.does not need to do this right now. The entire country is against it.

:37:24. > :37:27.Sources in the City and Whitehall tell me that if Labour pledged to

:37:27. > :37:35.renationalise it, it would kill off the flotation. So if you are against

:37:35. > :37:37.it, why don't you do it? For me to pledge to renationalise Royal Mail

:37:37. > :37:44.would be like writing a blank cheque. But if you put it in the

:37:44. > :37:50.prospectus, people in the City, who know more about these things, say it

:37:50. > :37:54.would not happen, so why not do it? Because that would be irresponsible.

:37:54. > :37:59.It would be like writing a cheque for billions to renationalise Royal

:37:59. > :38:05.Mail. You would not have too right at the check if it did not happen. I

:38:05. > :38:09.have to deal with the facts. I am not good deal with the plot somebody

:38:09. > :38:15.might be speculating about in the City. We have to be careful about

:38:15. > :38:19.this. For me to pledge to renationalise it now would be like

:38:19. > :38:22.writing a bank cheque . We are going to be a fiscally responsible

:38:22. > :38:28.government. That is why I am not prepared to do that. Ed Balls will

:38:28. > :38:30.not be talking to you. You are watching the Sunday Politics. Coming

:38:30. > :38:47.up in 20 minutes, On the Sunday Politics Wales, the

:38:47. > :38:54.leader of the Welsh Conservatives says that other parties failed to

:38:54. > :38:57.get the best out of budget deals with the Welsh government. We will

:38:57. > :39:03.get the view from Glasgow as the Welsh Lib Dem leader rallies the

:39:03. > :39:10.troops at her party's, but -- party's conference. Let's begin with

:39:10. > :39:17.post office Royal Mail privatisation. The Communication

:39:17. > :39:20.Workers Union say that strikes are inevitable. Labour opposed the

:39:20. > :39:27.privatisation but they have -- the government have been clear that this

:39:27. > :39:32.privatisation is going to happen. It is extremely disappointed that --

:39:32. > :39:38.disappointing that the government has legislated for this to happen.

:39:38. > :39:43.We are being asked to buy back what we already own. The people who got

:39:43. > :39:46.us into the financial mess in 2008 are going to make a killing out of

:39:46. > :39:56.this because they will buy up the shares cheap, sell off the prime

:39:56. > :40:10.assets and then the Royal mail service will be even worse off than

:40:10. > :40:15.it is at the moment. As Lee Hayes pointed out on the Andrew Marr show,

:40:15. > :40:19.if the London tube can have permission to raise money in order

:40:19. > :40:25.to invest, why can't Royal Mail? Clearly they need investment to keep

:40:25. > :40:33.pace with modernisation but this is not the way to do it. The Royal Mail

:40:33. > :40:39.is in profit, why does it need privatisation? I think it is the

:40:39. > :40:44.only thing we can do under the circumstances. The mail industry has

:40:44. > :40:50.been deregulated over the past few years, Royal Mail Haft to face

:40:50. > :40:56.competition for parcels and bulk mail and I have struggled to bring

:40:56. > :41:04.in the investment needed. -- Bay have to face. In terms of the staff,

:41:04. > :41:09.I understand why they will be concerns but we are looking at a

:41:09. > :41:14.model of cooperative working, where staff will receive 10% of the

:41:14. > :41:20.shares, which is a major part in the see of the future of the Royal Mail.

:41:20. > :41:25.When they consider the package being put in front of them I hope they

:41:25. > :41:30.consider what an alternative future but the Royal Mail would look like.

:41:30. > :41:35.This is just too sweet and an unacceptable policy. The leader of

:41:35. > :41:38.the Welsh Conservatives says that other opposition parties in the

:41:38. > :41:44.Assembly failed to get the best out of budget deals with the Welsh

:41:44. > :41:51.government. Andrew RT Davies said he will not settle for chicken feed

:41:51. > :41:57.but, with Plaid Cymru and the Liberal Democrats agreeing with

:41:57. > :42:11.cooperate, where does that leave the Conservatives?

:42:11. > :42:15.Andrew RT Davies is gearing up for a new Assembly term and the Welsh

:42:15. > :42:20.government's draft budget on the 8th of October. That budget will not go

:42:20. > :42:26.anywhere and less Labour get help from another party. It has relied on

:42:26. > :42:32.Plaid Cymru and the Lib Dems so far but how much does the Tory leader

:42:32. > :42:36.think they have got from it? If you have two -- you want to settle for

:42:36. > :42:43.chicken feed, that is for others to decide. I do not believe that there

:42:43. > :42:48.is pressure on the Welsh government. A farmer and a politician, he says

:42:48. > :42:54.he will work with anybody but not if it means joining what he calls the

:42:54. > :42:58.left wing club. What I want to deliver from the centre-right is

:42:58. > :43:02.ambition, hope and opportunity and I will continue to map out the

:43:02. > :43:06.alternative, which is what we have done in the first two years of this

:43:06. > :43:10.Assembly by bringing forward policies like grammar schools,

:43:10. > :43:15.regenerating the high streets, making sure our policies are a real

:43:15. > :43:21.alternative to the cosy politics of the left wing club. The arithmetic

:43:21. > :43:24.in the Assembly means that the opposition could gang up on car when

:43:24. > :43:30.Jones and make things difficult for his minority government. With two of

:43:30. > :43:34.the opposition leaders saying they will work together, does it mean

:43:34. > :43:41.Andrew RT Davies will have to plough his own furrow? In June, Plaid

:43:41. > :43:46.Cymru's leader and the Lib Dems' Kirsty Williams said they would team

:43:46. > :43:51.up for the budget negotiations. I understand ministers have already

:43:51. > :43:56.reached out to them over the summer. The deal with Labour last November

:43:56. > :44:01.is worth about £50 million over two years but when the Welsh government

:44:01. > :44:06.spends more than £14 billion every year was she bought off with small

:44:06. > :44:12.change? I am not getting into trading with the Tories. We have a

:44:12. > :44:18.set of proposals that we look forward to working with the Lib Dems

:44:18. > :44:22.in good time. The leader of the Tories in Wales is in a position

:44:22. > :44:29.either to support or not support whatever proposal we put forward and

:44:29. > :44:33.when he is in a position to negotiate and do deals himself he is

:44:33. > :44:38.in a position to trade insults but until then he is not in a good

:44:38. > :44:45.position. Mr Davies says he gets one well enough with a Plaid Cymru and

:44:45. > :44:52.Lib Dem leaders but it is a far cry from the plans for an -- a rainbow

:44:52. > :44:58.coalition six years ago. Ultimately I can deliver my 14 members as a

:44:58. > :45:04.voting bloc. Where we have been able to work together, in the budget

:45:04. > :45:07.rounds, managing a vote of no-confidence the government, the

:45:07. > :45:15.Ting pressure on the previous Education Minister, toughening up

:45:15. > :45:21.legislation. -- putting pressure on. Where we can do that, we are driving

:45:21. > :45:26.the agenda. He believes that he can make things difficult for Labour

:45:26. > :45:29.before the next general election. He does not believe that Plaid Cymru

:45:29. > :45:35.and the Lib Dems have left him out in the cold but will they want to

:45:35. > :45:42.work at him when he is taking a dig at his budget deals?

:45:43. > :45:51.Is settling for chicken feed your aim for autumn? We have negotiated a

:45:51. > :46:01.deal that has targeted £16 million at the poorest children. That is not

:46:01. > :46:07.much out of a £14.5 billion budget. I do not agree with him. -- the

:46:07. > :46:12.money invested in the pupil premium has had a massive impact on our most

:46:12. > :46:17.deprived communities. There are schools in our region, they have had

:46:17. > :46:24.thousands of pounds of extra funding as a result of the deal we did. That

:46:24. > :46:29.money has gone into employing extra teachers to make sure children who

:46:29. > :46:33.are falling behind are able to catch up, to supporting children with

:46:33. > :46:36.special educational needs, to investing in resources. It is about

:46:36. > :46:44.giving young people the best start in life on it is working and it is

:46:44. > :46:50.not insignificant. -- in life, it is working. It suits the Labour

:46:50. > :47:01.government to give as little money as well, doesn't it -- is money --

:47:01. > :47:07.as little money as way -- away as you can. Whatever we do we have to

:47:07. > :47:10.make sure we use resources carefully. The pupil depravation

:47:10. > :47:16.Grant is an important way of enabling all of our children to have

:47:16. > :47:20.the best chance in life but that does not mean there is no room for

:47:20. > :47:25.improvement in how schools are using it. I think Andrew RT Davies is very

:47:25. > :47:30.good at making pompous statements but frankly it is unlikely that we

:47:30. > :47:34.are going to be able to reach and work -- an arrangement with the

:47:34. > :47:40.Conservatives because they have shown little interest in making sure

:47:40. > :47:54.that we protect the most vulnerable in Wales. Obviously Carwyn Jones

:47:54. > :48:00.will be talking to the Conservatives and Plaid Cymru. Andrew RT Davies

:48:00. > :48:05.says he would like to make a deal with the government. Your party

:48:06. > :48:14.leader and Leanne Wood have joined forces that these discussions. What

:48:14. > :48:19.chance Andrew RT Davies joining in? If he wants to come to the table

:48:19. > :48:23.with a realistic and not properly costed oppose all that will improve

:48:23. > :48:27.the lives of people in Wales there is no reason why any of the parties

:48:27. > :48:33.in the Assembly would not work with him. To date he has not been able to

:48:33. > :48:36.do that. He seems to enjoy the knock-about party more than the

:48:36. > :48:52.serious business of improving people' lives. -- people's lives.

:48:52. > :48:59.They say it will be 1% of the budget. Is that true? We have to do

:48:59. > :49:03.what we can with the money available and I do not think that is

:49:03. > :49:07.realistic. I am confident that Carwyn Jones can reach an agreement.

:49:07. > :49:12.Conference season is under way, kicked off by the Liberal Democrats,

:49:12. > :49:15.who are meeting in Glasgow. Our correspondent has been speaking to

:49:15. > :49:22.the leader of the Welsh Liberal Democrats.

:49:22. > :49:25.In Glasgow the Lib Dems are gearing up for the next UK general

:49:25. > :49:30.election, little more than 18 months away. Kirsty Williams is the leader

:49:31. > :49:39.of the Welsh Lib Dems. So far in Scotland we have had an announcement

:49:39. > :49:44.is -- announcements on school uniform in England, other things in

:49:44. > :49:51.England, is there any point in the Welsh Lib Dems being here? Of

:49:51. > :49:54.course, because some things are not evolved to Wales and we rely on

:49:54. > :50:01.Westminster to get those things right. Yesterday I was talking about

:50:01. > :50:04.plans to give small businesses in England and Wales and National

:50:04. > :50:08.Insurance contribution break to help them take on members of staff. We

:50:08. > :50:14.are pushing to realise our dreams of a fairer taxation system, moving the

:50:14. > :50:19.threshold up so that people on lower incomes can keep more of their

:50:19. > :50:26.money. Where would you get the money for that? Over 100,000 people in

:50:26. > :50:32.Wales who were previously paying income taxes are now able to keep

:50:32. > :50:37.that money. We have over 1 million taxpayers who have a tax break of

:50:37. > :50:42.£700. We are talking about the ability to push that further so that

:50:42. > :50:46.nobody on minimum wage should be paying income tax at all. We have

:50:46. > :50:54.achieved that and it will only be achieved if we are in government. Is

:50:54. > :50:59.that a red line or like university tuition fees, which you will dump

:50:59. > :51:03.when you get in coalition? The number one manifesto commitment we

:51:03. > :51:07.stood on was to create the fairer taxation system and we have done

:51:07. > :51:13.that. We had commitments on the triple lock for pensioners... But I

:51:13. > :51:17.would quite like to know if this new policy of extending it to people on

:51:17. > :51:25.the minimum wage is a cast-iron commitment. It will be in our

:51:25. > :51:29.manifesto and we will see who people vote for in the next general

:51:29. > :51:34.election. We have 600 days before that general election and we are all

:51:34. > :51:41.about demonstrating that we can produce a stronger economy and a

:51:41. > :51:46.fairer society. In a survey of Lib Dem councillors, by and large they

:51:46. > :51:53.would rather you were in coalition with Labour. Is that your view? At

:51:53. > :51:57.the last election no party won an overall majority and my colleagues

:51:57. > :52:01.took a brave decision to create a stable government with a majority.

:52:01. > :52:04.It was not possible to do that with the Labour Party. At the next

:52:04. > :52:11.election we will see what the people of the UK deliver and work with

:52:11. > :52:18.other parties to form a strong government. What would be your

:52:18. > :52:25.preference as a Lib Dem leader in Wales, somebody who will play a big

:52:25. > :52:28.role in the election campaign? My job as a person responsible for

:52:28. > :52:32.helping to deliver the campaign is to make sure that as many people as

:52:32. > :52:36.possible here the Lib Dem message of what we have achieved in this

:52:36. > :52:44.government, lifting people out of tax, creating jobs... You don't mind

:52:44. > :52:50.who you end up in government with? I want to deliver as many Lib Dems as

:52:50. > :52:57.possible to Westminster. I am not going to get an answer, and I? You

:52:57. > :53:01.have to wait and see who the people of the UK decide. We want to create

:53:01. > :53:07.a strong economy, get people back to work but make sure our society is

:53:07. > :53:11.there, that everybody has a chance to get on. We can only do that by

:53:11. > :53:15.having the Liberal Democrats in government after 2015. Before then

:53:15. > :53:20.you have the Welsh government budget. Andrew RT Davies has said

:53:20. > :53:27.that you have settled in the past for chicken feed, for small policies

:53:27. > :53:32.that do not cost much money? That is an indictment of how the Welsh

:53:32. > :53:37.Conservatives feel about the poorest in our society. We have achieved

:53:37. > :53:42.additional money for education for our poorest students. Teachers and

:53:42. > :53:47.pupils I need do not describe that as chicken feed. It says more about

:53:47. > :53:51.the attitude of the Conservatives towards education and the poorest in

:53:51. > :53:56.society then it does about the Lib Dems. We are giving people a chance

:53:56. > :54:00.to get on and we want more money for the poorest children, for their sake

:54:00. > :54:04.and for the sake of the Welsh economy. If the Tories are not

:54:04. > :54:09.interested in that, that is disappointing but I am not changing

:54:09. > :54:14.my tack, I care about the poorest children and a stronger economy in

:54:14. > :54:24.Wales. Is education a priority view going into the next set of

:54:24. > :54:30.negotiations? Of course. Why should a poor student in Wrexham get £50

:54:30. > :54:36.extra than if they were over the border in Wales. Worst children are

:54:36. > :54:42.in danger of being left behind. -- Welsh children. Education used to be

:54:42. > :54:46.something we prided ourselves on but after a decade of Labour rule in

:54:46. > :54:53.Cardiff we have slipped behind. I want to start with the children who

:54:53. > :54:55.need help most and that is the poorest children. We will continue

:54:55. > :55:02.pressing the Welsh Labour government to do the right thing by Wales'

:55:02. > :55:08.children. Time will tell whether she enjoys

:55:08. > :55:12.her weak or not. Let's look to the future rather than into the past.

:55:12. > :55:18.Come the next election, if there was a hung parliament where would you

:55:18. > :55:25.rather your party nailed your flag? We are party of the centre ground so

:55:25. > :55:28.we are prepared to work with politicians from either side to get

:55:28. > :55:34.the best for people. We have done that in Westminster, the only way to

:55:34. > :55:38.form a stable government. We have done that in Wales with the Labour

:55:38. > :55:42.Party to deliver things like the pupil premium which is having a

:55:42. > :55:48.massive impact on the futures of Welsh children. So no answer there.

:55:48. > :55:53.Jenny Rathbone, Kirsty Williams was scathing of education in Wales.

:55:53. > :56:00.Perhaps a peculiar starting position for negotiations. We all recognise

:56:00. > :56:04.that we need to improve our education system and the Welsh

:56:04. > :56:09.government is improving it. She is blaming the Welsh Labour government

:56:09. > :56:13.for the state of it. That is the kind of thing people do in politics.

:56:13. > :56:18.We recognise we have to do better, we have to make sure we are doing at

:56:18. > :56:24.least as well as the UK, that we have ambitions to do much better

:56:24. > :56:27.than that. We need to have a skilled workforce and we are putting in

:56:27. > :56:38.place a huge amount of effort to make sure more students are studying

:56:38. > :56:43.maths, engineering, those subjects, so we need to make sure our

:56:43. > :56:49.education service is serving the needs of individual pupils and also

:56:49. > :56:53.the needs of our economy. Let's move back to the Lib Dems. We heard the

:56:53. > :57:03.party chairman saying that Ed Miliband was a nice guy. He also

:57:03. > :57:10.said he was an ethical guy and and effective guy. Are you pleased to

:57:10. > :57:17.hear the Lib Dems reaching out to your party? Clearly the Lib Dems are

:57:17. > :57:21.split on that. Kirsty Williams sat on the fence but the Lib Dems as a

:57:21. > :57:24.group of individuals, at least half of them would prefer to be in

:57:24. > :57:33.alliance with the Labour Party as opposed to a government that has

:57:33. > :57:38.delivered a bedroom tax... But the Liberal Democrats are talking about

:57:38. > :57:43.the economy. They are also talking about the bedroom tax. People

:57:43. > :57:50.realise this is appalling policy. Not only does it make sure that the

:57:50. > :57:57.very poorest are made even poorer, it is also going to increase the

:57:57. > :58:05.bill for housing benefit. Or so the attitude towards immigration. --

:58:05. > :58:10.also. Nick Clegg is washing his hands of these vans going around

:58:10. > :58:15.saying, hand yourselves in before we arrest you. I think the Liberal

:58:15. > :58:19.Democrats have difficult decisions ahead but I know that my

:58:19. > :58:24.constituents, after 2010 they said, we did not vote Liberal Democrat to

:58:24. > :58:34.have a Tory government, so in 2011 they voted Labour. The UK population

:58:34. > :58:41.did not endorse Gordon Brown government, he was roundly rejected

:58:41. > :58:45.at the election. We could not form a stable government with the Labour

:58:45. > :58:52.Party. Gordon Brown had in roundly rejected. We are party of the centre

:58:52. > :58:57.ground with or own identity. We are liberals, we have an identity and

:58:57. > :59:02.ideology unique to us and we are able to work with both sides. It is

:59:02. > :59:06.not a question of being in the closet about which side we would

:59:06. > :59:12.like to work with, it is about being independent and pragmatic. We are

:59:12. > :59:21.going to have to leave you. Time to have a quick look at the political

:59:21. > :59:29.stories in 60 seconds. Swansea born former Shadow Welsh

:59:29. > :59:33.Secretary Nigel Evans resigned after being charged with eight sexual

:59:33. > :59:36.offences. He said he would robustly defend his innocence and sit as an

:59:36. > :59:39.independent while the case continues.

:59:39. > :59:44.Finance Minister said the Welsh government would take steps to

:59:44. > :59:53.outlaw companies that lack the list when recruiting. -- the use

:59:53. > :00:00.blacklisting. The Shadow Welsh Secretary said

:00:00. > :00:05.privatisation was politically motivated and was aimed at filling

:00:05. > :00:09.the whole of the Chancellor's failed economic plan. George Osborne said

:00:09. > :00:13.privatisation would bring in a brilliant savers.

:00:13. > :00:19.Rosemary Butler was named as Assembly Member of the year. The

:00:19. > :00:25.Newport West Assembly Member is the first ever Presiding Officer of the

:00:25. > :00:42.devolved institution in the UK. -- a devolved institution. -- female

:00:42. > :00:46.residing officer. -- presiding. I know it is very important for all

:00:47. > :00:50.of us and us in Wales because the outcome of the Scottish referendum

:00:50. > :00:59.could leave to the whole of the UK unravelling. As Baroness Kennedy was

:00:59. > :01:03.saying this morning on the papers show, there has not been a lot of

:01:03. > :01:09.coverage about this important for random in the UK papers. Your party

:01:09. > :01:14.are a federal party, I suppose you will not support independence. We

:01:14. > :01:19.believe the nations of the UK are stronger together. But it does open

:01:19. > :01:25.up the question of what is the nature of the relationship between

:01:25. > :01:28.the nations. The nature of devolution in Wales is different to

:01:28. > :01:32.Scotland. We would like to see that situation discussed. That is all

:01:32. > :01:43.Scotland. We would like to see that more than pay is going up. Which

:01:43. > :01:50.deserves a programme all to itself. In a moment, more from our political

:01:50. > :01:52.panel, but first the news. Good afternoon. Nick Clegg says

:01:52. > :01:56.victory for either the Conservatives Good afternoon. Nick Clegg says

:01:56. > :02:00.or labour at the next election would put at risk the economic recovery

:02:00. > :02:01.is. Speaking in Glasgow at the Liberal Democrat annual conference,

:02:01. > :02:05.he said a coalition would allow his Liberal Democrat annual conference,

:02:05. > :02:10.party to balance politics and enable the government to finish the job of

:02:10. > :02:15.repairing the economy fairly. It is my genuine belief that if we go back

:02:15. > :02:18.to the bad old days, not of coalition and Islands politics, but

:02:18. > :02:23.of either the left or right dominating blood on their own, you

:02:23. > :02:25.will get a recovery which is neither fair nor sustainable. Labour would

:02:25. > :02:27.wreck the recovery, and under the fair nor sustainable. Labour would

:02:27. > :02:29.Conservatives, who don't have fair nor sustainable. Labour would

:02:29. > :02:35.same commitment to fairness as ours, you would get the wrong kind

:02:35. > :02:38.of recovery. Two 19-year-old woman arrested after

:02:38. > :02:42.a stabbing on Thursday have been released without charge. Police are

:02:42. > :02:46.trying to discover if there is a link between the killing and a fire

:02:46. > :02:50.four hours later in which four members of the same family died.

:02:50. > :02:53.Five people are being questioned in connection with that blaze. A Syrian

:02:53. > :02:58.government minister has described the agreement drawn up by America

:02:58. > :02:59.and Russia to dispose of his country's chemical weapons as a

:02:59. > :03:04.victory. The minister claims the deals helps

:03:04. > :03:08.the Syrians out of a crisis and others war. The US Secretary of

:03:08. > :03:11.State John Kerry is in Israel to brief the prime minister, Benjamin

:03:11. > :03:15.Netanyahu, on the proposal. China and France have also welcomed the

:03:15. > :03:20.deal, which says Syria has until Friday to submit a competence of

:03:20. > :03:25.list of its chemical stockpile. Britain's Mo Farah has missed out on

:03:25. > :03:27.winning his first half marathon by around one second.

:03:27. > :03:32.He was taking part in the Great North Run between Newcastle and

:03:32. > :03:35.South Shields. Farrar, who was the favourite following his two gold

:03:35. > :03:41.medals at the athletics World Championships, lost out to

:03:41. > :03:46.Ethiopian's can mean many Serb -- Kenenisa Bekele in a sprint finish.

:03:46. > :03:50.A carnival atmosphere for the start of the 33rd Great North Run.

:03:51. > :03:53.Thousands limbered up. For some, it was about the challenge. For others,

:03:53. > :03:58.simply dressing up for fun. I am was about the challenge. For others,

:03:58. > :04:02.walking it, so I have no time in mind. I just want to enjoy it and

:04:02. > :04:09.appreciate the crowds and have a fantastic time. For elite athletes,

:04:09. > :04:13.today's race was about who would be first over the line. Despite the

:04:13. > :04:17.wind and rain, large crowds turned out for the world's most popular

:04:17. > :04:25.half marathon, which attracts some of the finest women runners, two,

:04:26. > :04:29.including the Kenyan. There were high hopes for Britain's double

:04:29. > :04:31.Olympic champion Mo Farah, but after a long sprint finish in South

:04:31. > :04:38.Olympic champion Mo Farah, but after Shields, he was narrowly beaten

:04:38. > :04:45.Ethiopian's Kenenisa Bekele. It was a great race and a great finish. I

:04:45. > :04:49.thought the pace was ridiculous. I thought I would come back and close

:04:49. > :04:54.the gap slowly. I managed to close it a little bit, but you can't take

:04:54. > :05:00.away what he has. Wheelchair athlete David Weir won his race for a fourth

:05:00. > :05:06.time. More than £200 million has been raised since the Great North

:05:06. > :05:16.Run began in 1981. That is it for now. There will be

:05:16. > :05:19.more news on BBC One at 6:35pm. So, did anything happen while we

:05:19. > :05:25.were away this summer? I thought not. Whereas British politics

:05:25. > :05:29.heading now? Who better to answer than the best political panel we

:05:29. > :05:34.could cobble together for a tenner? Even then, they are overpaid.

:05:34. > :05:38.Putting foreign affairs to one side for a moment, it seems that what

:05:38. > :05:42.happened mystically was that it became more apparent that some sort

:05:42. > :05:48.of recovery was underway at last, and that Mr Miliband still has not

:05:48. > :05:55.yet resonated with the British public. These things are a problem

:05:55. > :05:59.for Labour. Ed Miliband's mistake over the summer holiday was to take

:05:59. > :06:03.a summer holiday. And it looked like the rest of the Labour Party had

:06:03. > :06:07.taken one too. They were not finding issues they could make their own.

:06:07. > :06:11.The only person who made an impact was Stella Creasy on online abuse.

:06:11. > :06:15.That is a huge problem, and it is partly down to the fact that there

:06:15. > :06:19.is this intense message discipline. They don't want to say anything out

:06:19. > :06:23.of line until they have got all their ducks in a row. It makes the

:06:23. > :06:28.party do at the moment. The terms of trade have swung in David Cameron's

:06:28. > :06:33.favour, but the political rhetoric is still with Mr Miliband. Let's

:06:33. > :06:41.look at this headline from the Sunday Telegraph. That headline

:06:41. > :06:46.might not be right, but the story is Sunday Telegraph. That headline

:06:46. > :06:49.significant in that Mr Cameron is still in danger on his right flank

:06:49. > :06:51.significant in that Mr Cameron is from UKIP, and Mr Miliband

:06:51. > :06:56.significant in that Mr Cameron is doesn't need an enormous share of

:06:56. > :06:59.the vote to get an overall majority? There is a danger here of

:06:59. > :07:02.the vote to get an overall majority? Westminster group think. Of course

:07:02. > :07:04.Ed Miliband is in trouble. The Tories are reserved and. They are

:07:04. > :07:08.better organised, the economy is Tories are reserved and. They are

:07:08. > :07:15.recovering. That poses difficulties for Labour, but if you look at what

:07:15. > :07:19.is happening on the ground, UKIP still pose a danger to Cameron. They

:07:19. > :07:23.don't need to poll 15% in a lot of those marginal seats, they just need

:07:23. > :07:33.to get five or 6% of the vote, and that could potentially destroy the

:07:33. > :07:39.Tory lead. Lots of commentators like to say, this guy will never be prime

:07:39. > :07:43.minister, but it is possible that by default or by accident, in a very

:07:43. > :07:48.fluid electoral situation, Ed Miliband could end up as prime

:07:48. > :07:53.minister. It is still all to play for on both sides. If UKIP remains a

:07:53. > :07:58.threat to the Tory right flank and the Tories themselves are not really

:07:58. > :08:02.a national party any more, I am told they will only target a few seats in

:08:02. > :08:05.Scotland, they don't get any big seats in the big cities of the north

:08:06. > :08:10.any more, they don't get the Ulster vote they used to get, so it is

:08:10. > :08:13.possible that Labour, which is more nationally based and has seats in

:08:13. > :08:19.the Midlands and the north and in Wales, so they could get in. I

:08:19. > :08:21.agree. The advantage of having a bad summer is that Ed Miliband can go to

:08:21. > :08:25.his conference facing low summer is that Ed Miliband can go to

:08:25. > :08:28.expectations. All he has to do is not dribble on the lectern, and it

:08:28. > :08:33.will be written up as spectacular. not dribble on the lectern, and it

:08:33. > :08:37.He might not even use a lectin. Structurally, he is in a good

:08:37. > :08:41.position. The electoral vagaries of Structurally, he is in a good

:08:41. > :08:46.the system work in his favour. He still has a narrow poll lead, he is

:08:46. > :08:48.not out of the game at all. Of the three main party leaders, the only

:08:48. > :08:54.one who can be confident about being three main party leaders, the only

:08:54. > :08:59.in government after 2015 is Nick Clegg. David Cameron faces a

:08:59. > :09:02.difficult structural position electorally. But if it is this bad

:09:02. > :09:11.for Labour at the moment, what will it be like if this recovery turns

:09:11. > :09:16.out to be real? It depends how much they succeed. Chuka Umunna was

:09:16. > :09:20.shifting the debate are living standards. They don't want to keep

:09:20. > :09:24.arguing about who called it right. Do people feel richer than they were

:09:24. > :09:31.in 2010? The data suggests that people don't feel richer than in

:09:31. > :09:37.2010. Because they are not.That is the basis on which Labour will fight

:09:37. > :09:40.the next election. It is clear that Labour are unclear on what to say or

:09:40. > :09:44.do next. They have just got to hope and pray that the economy is not as

:09:44. > :09:51.soundly based as it appears to be and that George Osborne is Tony

:09:51. > :09:54.Barber, who thought he fixed the economy in the 1970s and hadn't,

:09:54. > :09:58.just before the next crash. There are all sorts of uncertainties -

:09:58. > :10:02.China, the bond market, the housing bubble might be blown up, and Labour

:10:02. > :10:10.just had to hope something goes wrong for Osborne. Chuka Umunna said

:10:10. > :10:12.he would not get rid of help to buy. There are all these criticisms about

:10:12. > :10:18.he would not get rid of help to buy. artificial schemes pumping up house

:10:18. > :10:23.prices, but he would not say that. It is tortuous. You see this again

:10:23. > :10:29.and again. When asked if Labour would repeal the bedroom tax, or the

:10:29. > :10:38.same thing with Royal Mail, it happens again. They will be falling

:10:38. > :10:40.on people who have not had a meal in years because there is so little

:10:40. > :10:44.on people who have not had a meal in coming out of the Labour Party.

:10:44. > :10:48.There is a kind and Gillette in with them to a politician's career. When

:10:48. > :10:52.they are under attack for a long time, the media get bored after a

:10:52. > :10:57.while and switch the story. It happened to Osborne, who had a

:10:57. > :11:00.horrific 2012 and has recovered this year. It will probably happen

:11:00. > :11:06.Miliband. He can't keep getting as bad press as he is getting at the

:11:06. > :11:11.moment, because people find it tedious. Syria has been the big

:11:11. > :11:14.foreign-policy event this summer. It has remarkably led to a Soviet-

:11:14. > :11:20.foreign-policy event this summer. It American initiative to get Syria to

:11:20. > :11:25.give up its chemical weapons. The world will now expect the Assad

:11:25. > :11:27.regime to live up to its public commitments. As I said at the outset

:11:27. > :11:39.of these negotiations, there can be no games, no room for avoidance or

:11:39. > :11:45.anything less than full compliance. John Kerry. Is this too good to be

:11:45. > :11:49.true? Even superficially, it is not very good. The only people who

:11:49. > :11:51.emerge with any sense of triumph are the Russians, who have had their

:11:51. > :11:56.emerge with any sense of triumph are biggest diplomatic coup. They are

:11:56. > :11:59.back on the stage again. B if you want to know why Putin even has a

:11:59. > :12:03.back on the stage again. B if you constituency in Russia, it is

:12:03. > :12:07.because of moments like this. They were humiliated after the end of the

:12:07. > :12:11.Cold War, and a Nou Camp is a great power again. Then you have the Obama

:12:11. > :12:14.situation, because he has ended up where he wanted to end up. He has

:12:14. > :12:15.situation, because he has ended up avoided war and extracted a

:12:15. > :12:17.situation, because he has ended up concession from Syria, but the way

:12:17. > :12:21.he got there was so concession from Syria, but the way

:12:21. > :12:25.made him look weak and erratic as a leader. There were contradictions

:12:25. > :12:32.between himself and his Secretary of State last week, and it has not done

:12:32. > :12:40.him any good. I was in the States, and it was open season on him. I

:12:40. > :12:44.have never understood the idea of chemical weapons as a red line when

:12:44. > :12:49.you can massacre people in their thousands through other means. But

:12:49. > :12:56.everybody seems to agree that chemical weapons are beyond the

:12:56. > :13:00.pale. The rebels are miserable. We have run out of time. I will have to

:13:00. > :13:05.ask you what you think about Syria next week, which gives you time to

:13:05. > :13:11.prepare. Your book on Fred the shred is going well? It is.I am back

:13:11. > :13:13.tomorrow at noon with the Daily Politics at noon on BBC Two, where

:13:13. > :13:17.we will have more from the Liberal Politics at noon on BBC Two, where

:13:17. > :13:19.Democrat conference in Glasgow. It is the start of our Daily Politics

:13:19. > :13:22.conference coverage. Next week, we is the start of our Daily Politics

:13:22. > :13:27.will be back here at our normal time of 11am, when we will be joined by

:13:27. > :13:31.the Conservative Party chairman, Grant Shapps. Remember, if it is

:13:31. > :13:50.Sunday, it is the Sunday Politics.