27/10/2013

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:00:37. > :00:41.Morning, folks. Welcome to the Sunday Politics. Hope you enjoyed

:00:42. > :00:47.the extra hour in bed, and that you've realised it's not 12:45. It's

:00:48. > :00:50.11:45! It's getting stormy outside. But they're already battening down

:00:51. > :00:52.the hatches at Number Ten because coalition splits are back, with

:00:53. > :00:57.bust-ups over free schools and power bills. We'll speak to the Lib Dems,

:00:58. > :01:01.and ask Labour who's conning whom over energy.

:01:02. > :01:04.EU leaders have been meeting in Brussels. But how's David Cameron

:01:05. > :01:15.getting on with that plan to change our relationship with Europe? We

:01:16. > :01:19.were there to ask him. Have we got any powers back yet? DS!

:01:20. > :01:20.Foreign companies own everything from our energy companies to our

:01:21. > :01:34.railways. Does it from our energy companies to our

:01:35. > :01:38.as many daily journeys made by bus than by tube, so why is the planned

:01:39. > :01:45.investment in buses not keeping pace?

:01:46. > :01:49.And with me, three journalists who've bravely agreed to hunker down

:01:50. > :01:51.in the studio while Britain braces itself for massive storm winds,

:01:52. > :01:55.tweeting their political forecasts with all the accuracy of Michael

:01:56. > :02:01.Fish on hurricane watch. Helen Lewis, Janan Ganesh and Nick Watt.

:02:02. > :02:06.Now, sometimes coalition splits are over-egged, or dare we say even

:02:07. > :02:09.occasionally stage-managed. But this week, we've seen what looks like the

:02:10. > :02:12.genuine article. It turns out Nick Clegg has his doubts about the

:02:13. > :02:16.coalition's flagship free schools policy. David Cameron doesn't much

:02:17. > :02:19.like the green levies on our energy bills championed by the Lib Dems.

:02:20. > :02:23.Neither of them seems to have bothered to tell the other that they

:02:24. > :02:27.had their doubts. Who better to discuss these flare-ups than Lib Dem

:02:28. > :02:37.Deputy Leader Simon Hughes? He joins me now. Welcome. Good morning. The

:02:38. > :02:42.Lib Dems spent three years of sticking up for the coalition when

:02:43. > :02:46.times were grim. Explain to me the logic of splitting from them when

:02:47. > :02:51.times look better. We will stick with it for five years. It is

:02:52. > :02:55.working arrangement, but not surprisingly, where there right

:02:56. > :02:59.areas on which we disagree over where to go next, we will stand up.

:03:00. > :03:04.It is going to be hard enough for the Lib Dems to get any credit for

:03:05. > :03:09.the recovery, what ever it is. It will be even harder if you seem to

:03:10. > :03:13.be semidetached and picky. The coalition has led on economic

:03:14. > :03:19.policy, some of which were entirely from our stable. The one you have

:03:20. > :03:24.heard about most often, a Lib Dem initiative, was to take people on

:03:25. > :03:27.blowing comes out of tax. The recovery would not have happened,

:03:28. > :03:32.there would not have been confidence in Britain, had there not been a

:03:33. > :03:37.coalition government with us in it, making sure the same policies

:03:38. > :03:41.produced fair outcomes. We are not going to leave the credit for any

:03:42. > :03:46.growth - and there has been very good news this week. We have played

:03:47. > :03:50.a part in that, and without us, it would not have happened. Does it not

:03:51. > :03:54.underline the trust problem you have? You promised to abolish

:03:55. > :04:01.tuition fees. You oppose nuclear power, now you are cheerleading the

:04:02. > :04:06.first multi-billion pounds investment in nuclear generation.

:04:07. > :04:10.You are dying out on your enthusiasm on green levies, and now they are up

:04:11. > :04:17.for renegotiation. Why should we trust a word you say? In relation to

:04:18. > :04:27.green levies, as you well know, just under 10% is to do with helping

:04:28. > :04:31.energy and helping people. Unless there is continuing investment in

:04:32. > :04:35.renewables, we will not have the British produced energy at cheaper

:04:36. > :04:39.cost to keep those bills down in the future. At cheaper cost? Explain

:04:40. > :04:48.that to me. Off-shore energy is twice the market rate. The costs of

:04:49. > :04:53.renewables will increasingly come down. We have fantastic capacity to

:04:54. > :04:58.produce the energy and deliver lots of jobs in the process. The parts of

:04:59. > :05:02.the energy bill that may be up for renegotiation seems to be the part

:05:03. > :05:08.where we subsidise to help either poor people pay less, or where we do

:05:09. > :05:13.other things. Too insulated the homes? Are you up to putting that to

:05:14. > :05:19.general taxation? Wouldn't that be progressive? I would. It would be

:05:20. > :05:22.progressive. I would like to do for energy bills what the Chancellor has

:05:23. > :05:29.done for road traffic users, drivers, which is too fuelled motor

:05:30. > :05:33.fuel -- to freeze new to fall. That would mean there would be an

:05:34. > :05:39.immediate relief this year, not waiting for the election. So there

:05:40. > :05:43.is a deal to be done there? Yes. We understand we have to take the

:05:44. > :05:46.burden off the consumer, and also deal with the energy companies, who

:05:47. > :05:50.look as if they are not paying all the tax they should be, and the

:05:51. > :05:55.regulator, which doesn't regulate quickly enough to deal with the

:05:56. > :05:59.issues coming down the track. We can toughen the regulator, and I hope

:06:00. > :06:02.that the Chancellor, in the Autumn statement, was signalled that energy

:06:03. > :06:06.companies will not be allowed to get away with not paying the taxes they

:06:07. > :06:13.should. And this deal will allow energy prices to come down? Yes. How

:06:14. > :06:18.could David Laws, one of your ministers, proudly defend the record

:06:19. > :06:23.of unqualified teachers working in free schools, and then stand

:06:24. > :06:29.side-by-side with Mr Clegg, as he says he is against them? David Laws

:06:30. > :06:34.was not proudly defending the fact that it is unqualified teachers. He

:06:35. > :06:39.said that some of the new, unqualified teachers in free schools

:06:40. > :06:44.are doing a superb job. But you want to get rid of them? We want to make

:06:45. > :06:50.sure that everybody coming into a free school ends up being qualified.

:06:51. > :06:55.Ends up? Goes through a process that means they have qualifications. Just

:06:56. > :07:00.as we said very clearly at the last election that the manifesto

:07:01. > :07:04.curriculum in free schools should be the same as other schools. It looks

:07:05. > :07:11.like Mr Clegg is picking a fight just for the sake of it. Mr Clegg

:07:12. > :07:14.was taught by people who didn't have teaching qualifications in one of

:07:15. > :07:19.the greatest schools in the land, if not the world. It didn't seem to do

:07:20. > :07:24.him any harm. What is the problem? If you pay to go to a school, you

:07:25. > :07:31.know what you're getting. But that is what a free school is. No, you

:07:32. > :07:35.don't pay fees. A free school is parents taking the decisions, not

:07:36. > :07:39.you, the politicians. We believe they would expect to guarantee is,

:07:40. > :07:44.firstly that the minimum curriculum taught across the country is taught

:07:45. > :07:47.in the free schools, and secondly, that the teachers there are

:07:48. > :07:52.qualified. Someone who send their kids to private schools took a

:07:53. > :07:59.decision to take -- to send their children there, even if the teachers

:08:00. > :08:03.were unqualified, because they are experts in their field. Someone who

:08:04. > :08:10.send their kids to free schools is because -- is their decision, not

:08:11. > :08:13.yours. Because some of the free schools are new, and have never been

:08:14. > :08:19.there before, parents need a guarantee that there are some basics

:08:20. > :08:24.in place, whatever sort of school. So they need you to hold their hand?

:08:25. > :08:29.It is not about holding hands, it is about having a minimum guarantee.

:08:30. > :08:33.Our party made clear at our conference that this is a priority

:08:34. > :08:37.for us. Nick Clegg reflects the view of the party, and I believe it is an

:08:38. > :08:41.entirely rational thing to do. Nick Clegg complained that the Prime

:08:42. > :08:50.Minister gave him only 30 minutes notice on the Prime Minister Buzz 's

:08:51. > :08:53.U-turn on green levies. That is almost as little time as Nick Clegg

:08:54. > :08:57.gave the Prime Minister on his U-turn on free schools. Aren't you

:08:58. > :09:06.supposed to be partners? Green levies were under discussion in the

:09:07. > :09:10.ministerial group before Wednesday, because we identified this as an

:09:11. > :09:16.issue. We do that in a practical way. Sometimes there is only half an

:09:17. > :09:22.hour's notice. We had even less than half an hour this morning! Simon

:09:23. > :09:27.Hughes, thank you. So the price of energy is the big

:09:28. > :09:32.battle ground in politics at the moment. 72% of people say that high

:09:33. > :09:36.bills will influence the way they vote at the next election. Ed

:09:37. > :09:41.Miliband has promised a price freeze after the next election, but will

:09:42. > :09:47.the coalition turned the tables on Labour, with its proposal to roll

:09:48. > :09:55.back green levies. Caroline Flint joins us from Sheffield. It looks

:09:56. > :10:03.like the coalition will be able to take ?50 of energy bills, by

:10:04. > :10:06.removing green levies. It is quite clear that different parts of the

:10:07. > :10:10.government are running round waking up to the fact that the public feel

:10:11. > :10:14.that this government has not done enough to listen to their concerns.

:10:15. > :10:18.Last week, there was a classic case of the Prime Minister making up

:10:19. > :10:23.policy literally at the dispatch box. Let's see what they say in the

:10:24. > :10:26.autumn statement. The truth is, whatever the debate around green

:10:27. > :10:31.levies, and I have always said we should look at value for money at

:10:32. > :10:49.those green levies. Our argument is about acknowledging there is

:10:50. > :10:51.something wrong with the way the market works, and the way those

:10:52. > :10:54.companies are regulated. Behind our freeze for 20 months is a package of

:10:55. > :10:56.proposals to reform this market. I understand that, but you cannot tell

:10:57. > :10:59.as the details about that. I can. You cannot give us the details about

:11:00. > :11:02.reforming the market. We are going to do three things, and I think I

:11:03. > :11:06.said this last time I was on the programme. First, we are going to

:11:07. > :11:13.separate out the generation side from the supply side within the big

:11:14. > :11:18.six. Secondly, we will have a energy pool, or power exchange, where all

:11:19. > :11:22.energy will have to be traded in that pool. Thirdly, we will

:11:23. > :11:26.establish a tougher regulator, because Ofgem is increasingly being

:11:27. > :11:31.seen as not doing the job right. I notice that you didn't mention any

:11:32. > :11:36.reform of the current green and social taxes on the energy bill. Is

:11:37. > :11:42.it Labour's policy to maintain the existing green levies? In 2011, the

:11:43. > :11:48.government chose to get rid of warm front, which was the publicly funded

:11:49. > :11:52.through tracks a scheme to support new installation. When they got rid

:11:53. > :11:58.of that, it was the first time we had a government since the 70s that

:11:59. > :12:03.didn't have such a policy. What is your policy? We voted against that

:12:04. > :12:09.because we believe it is wrong. We believe that the eco-scheme, a

:12:10. > :12:17.government intervention which is ?47 of the ?112 on our bills each year,

:12:18. > :12:21.is expensive, bureaucratic and isn't going to the fuel poor. I am up for

:12:22. > :12:24.a debate on these issues. I am up for a discussion on what the

:12:25. > :12:28.government should do and what these energy companies should do. We

:12:29. > :12:32.cannot let Cameron all the energy companies off the hook from the way

:12:33. > :12:38.in which they organise their businesses, and expect us to pay

:12:39. > :12:42.ever increasing rises in our bills. There is ?112 of green levies on our

:12:43. > :12:47.bills at the moment. Did you vote against any of them? We didn't, but

:12:48. > :12:54.what I would say ease these were government imposed levies. When they

:12:55. > :13:02.got rid of the government funded programme, Warm Front, they

:13:03. > :13:09.introduced the eco-scheme. The eco-project is one of the ones where

:13:10. > :13:13.the energy companies are saying, it's too bureaucratic, and it is

:13:14. > :13:15.proving more expensive than government estimates, apparently

:13:16. > :13:20.doubled the amount the government thought. These things are all worth

:13:21. > :13:25.looking at, but don't go to the heart of the issue. According to

:13:26. > :13:36.official figures, on current plans, which you support, which you voted

:13:37. > :13:42.for, households will be paying 41% more per unit of electricity by

:13:43. > :13:51.2030. It puts your temporary freeze as just a blip. You support a 41%

:13:52. > :13:56.rise in our bills. I support making sure we secure for the future access

:13:57. > :14:01.to energy that we can grow here in the UK, whether it is through

:14:02. > :14:09.nuclear, wind or solar, or other technologies yet to be developed. We

:14:10. > :14:14.should protect ourselves against energy costs we cannot control. The

:14:15. > :14:18.truth is, it is every fair for you to put that point across, and I

:14:19. > :14:22.accept that, but we need to hear the other side about the cost for bill

:14:23. > :14:26.payers if we didn't invest in new, indigenous sources of energy supply

:14:27. > :14:31.for the future, which, in the long run, will be cheaper and more

:14:32. > :14:35.secure, and create the jobs we need. I think it is important to

:14:36. > :14:39.have a debate about these issues, but they have to be seen in the

:14:40. > :14:46.right context. If we stay stuck in the past, we will pay more and we

:14:47. > :14:51.will not create jobs. How can you criticise the coalition's plans for

:14:52. > :14:56.a new nuclear station, when jeering 13 years of a Labour government, you

:14:57. > :14:59.did not invest in a single nuclear plant? You sold off all our nuclear

:15:00. > :15:13.technology to foreign companies. Energy provision was put out to

:15:14. > :15:22.private hands and there has been no obstacle in British law against

:15:23. > :15:29.ownership outside the UK. Part of this is looking ahead. Because your

:15:30. > :15:33.previous track record is so bad? What we did decide under the

:15:34. > :15:38.previous government, we came to the view, and there were discussions in

:15:39. > :15:45.our party about this, that we did need to support a nuclear future.

:15:46. > :15:48.At the time of that, David Cameron was one of those saying that

:15:49. > :15:53.nuclear power should be a last resort. And as you said, the

:15:54. > :15:59.Liberals did not support it. We stood up for that. We set in train

:16:00. > :16:02.the green light of 10 sites, including Hinkley Point, for

:16:03. > :16:06.nuclear development. I am glad to see that is making progress and we

:16:07. > :16:10.should make more progress over the years ahead. We took a tough

:16:11. > :16:19.decision when other governments had not done. You did not build a new

:16:20. > :16:27.nuclear station. When you get back into power, will you build HS2?

:16:28. > :16:33.That has not had a blank cheque from the Labour Party. I am in

:16:34. > :16:39.favour of good infrastructure. Are you in favour of?, answer the

:16:40. > :16:44.question? I have answered the question. It does not have a blank

:16:45. > :16:49.cheque. If the prices are too high, we will review the decision when we

:16:50. > :16:54.come back to vote on it. We will be looking at it closely. We have to

:16:55. > :16:59.look for value for money and how it benefits the country. Have you

:17:00. > :17:03.stocked up on jumpers this winter? I am perfectly all right with my

:17:04. > :17:10.clothing. What is important, it is ridiculous for the Government to

:17:11. > :17:20.suggest that the answer to the loss of trust in the energy companies is

:17:21. > :17:26.to put on another jumper. The coalition has taken a long time

:17:27. > :17:31.to come up with anything that can trump Ed Miliband's simple freezing

:17:32. > :17:36.energy prices, vote for us. Are they on the brink of doing so? I do

:17:37. > :17:40.not think so. They have had a problem that has dominated the

:17:41. > :17:46.debate, talking about GDP, the figures came out on Friday and said,

:17:47. > :17:51.well, and went back to talking about energy. My problem with what

:17:52. > :17:56.David Cameron proposes is he agrees with the analysis that the Big Six

:17:57. > :18:01.make too many profits. He wants to move the green levies into general

:18:02. > :18:07.taxation, so that he looks like he is protecting the profits of the

:18:08. > :18:12.energy companies. If the coalition can say they will take money off

:18:13. > :18:18.the bills, does that change the game? I do not think the Liberal

:18:19. > :18:24.Democrats are an obstacle to unwinding the green levies. I think

:18:25. > :18:28.Nick Clegg is open to doing a deal, but the real obstacle is the carbon

:18:29. > :18:34.reduction targets that we signed up to during the boom years. They were

:18:35. > :18:37.ambitious I thought at the time. From that we have the taxes and

:18:38. > :18:43.clocking up of the supply-side of the economy. Unless he will revise

:18:44. > :18:47.that, and build from first principles a new strategy, he

:18:48. > :18:54.cannot do more than put a dent into green levies. He might say as I

:18:55. > :18:58.have got to ?50 now and if you voters in in an overall majority, I

:18:59. > :19:03.will look up what we have done in the better times and give you more.

:19:04. > :19:08.I am sure he will do that. It might be ?50 of the Bill, but it will be

:19:09. > :19:13.?50 on your general taxation bill, which would be more progressive.

:19:14. > :19:19.They will find it. We will never see it in general taxation. The

:19:20. > :19:25.problem for the Coalition on what Ed Miliband has done is that it is

:19:26. > :19:29.five weeks since he made that speech and it is all we are talking

:19:30. > :19:32.about. David Cameron spent those five weeks trying to work out

:19:33. > :19:36.whether Ed Miliband is a Marxist or whether he is connected to Middle

:19:37. > :19:41.Britain. That is why Ed Miliband set the agenda. The coalition are

:19:42. > :19:49.squabbling among themselves, looking petulant, on energy, and on

:19:50. > :19:55.schools. Nobody is taking notice of the fact the economy is under way,

:19:56. > :20:01.the recovery is under way. Ed Miliband has made the weather on

:20:02. > :20:07.this. It UK has a relaxed attitude about

:20:08. > :20:15.selling off assets based -- to companies based abroad. But this

:20:16. > :20:17.week we have seen the Swiss owner of one of Scotland's largest

:20:18. > :20:20.industrial sites, Grangemouth, come within a whisker of closing part of

:20:21. > :20:23.it down. So should we care whether British assets have foreign owners?

:20:24. > :20:26.Britain might be a nation of homeowners, but we appear to have

:20:27. > :20:31.lost our taste for owning some of our biggest businesses. These are

:20:32. > :20:38.among the crown jewels sold off in the past three decades to companies

:20:39. > :20:41.based abroad. Roughly half of Britain's essential services have

:20:42. > :20:43.overseas owners. The airport owner, British Airports Authority, is

:20:44. > :20:45.owned by a Spanish company. Britain's largest water company,

:20:46. > :20:49.Thames, is owned by a consortium led by an Australian bank. Four out

:20:50. > :20:52.of six of Britain's biggest energy companies are owned by overseas

:20:53. > :20:55.giants, and one of these, EDF Energy, which is owned by the

:20:56. > :20:57.French state, is building Britain's first nuclear power plant in a

:20:58. > :21:05.generation, backed by Chinese investors. It's a similar story for

:21:06. > :21:10.train operator Arriva, bought by a company owned by the German state.

:21:11. > :21:12.So part of the railways privatised by the British government was

:21:13. > :21:22.effectively re-nationalised by the German government. But does it

:21:23. > :21:25.matter who owns these companies, as long as the lights stay on, the

:21:26. > :21:31.trains run on time, and we can still eat Cadbury's Dairy Milk?

:21:32. > :21:36.We are joined by the general secretary of the RMT, Bob Crow, and

:21:37. > :21:44.by venture capitalist Julie Meyer. They go head to head.

:21:45. > :21:50.Have we seen the consequences of relying for essential services to

:21:51. > :21:56.be foreign-owned? Four of the Big Six energy companies, Grangemouth,

:21:57. > :22:03.owned by a tax exile in Switzerland. It is not good. I do not think

:22:04. > :22:07.there is a cause and effect relationship between foreign

:22:08. > :22:12.ownership and consumer prices. That is not the right comparison. We

:22:13. > :22:15.need to be concerned about businesses represented the future,

:22:16. > :22:20.businesses we are good at innovating for example in financial

:22:21. > :22:27.services and the UK has a history of building businesses, such as

:22:28. > :22:37.Monotypes. If we were not creating businesses here -- Monotise. Like

:22:38. > :22:47.so many businesses creating products and services and creating

:22:48. > :22:52.the shareholders. Should we allow hour essential services to be in

:22:53. > :22:56.foreign ownership? It was demonstrated this week at

:22:57. > :23:01.Grangemouth. If you do not own the industry, you do not own it. The

:23:02. > :23:05.MPs of this country and the politicians in Scotland have no say,

:23:06. > :23:11.they were consultants. Multinationals decide whether to

:23:12. > :23:16.shut a company down. If that had been Unite union, they are the ones

:23:17. > :23:22.who saved the jobs. They capitulated. They will come back,

:23:23. > :23:26.like they have for the past 150 years, and capture again what they

:23:27. > :23:33.lost. If it had closed, they would have lost their jobs for ever. If

:23:34. > :23:37.the union had called the members up without a ballot for strike action,

:23:38. > :23:42.there would have been uproar. This person in Switzerland can decide to

:23:43. > :23:47.shut the entire industry down. The coalition, the Labour Party, as

:23:48. > :23:53.well, when Labour was in government, they played a role of allowing

:23:54. > :24:05.industries to go abroad, and it should be returned to public

:24:06. > :24:12.ownership. Nestor. It has demonstrated that the Net comes

:24:13. > :24:18.from new businesses. We must not be... When Daly motion was stopped

:24:19. > :24:24.by the French government to be sold, it was an arrow to the heart of

:24:25. > :24:28.French entrepreneurs. We must not create that culture in the UK.

:24:29. > :24:32.Every train running in France is built in France. 90% of the trains

:24:33. > :24:43.running in Germany are built in Germany. In Japan, it has to be

:24:44. > :24:47.built in that country, and now an energy company in France is

:24:48. > :24:50.reducing its nuclear capability in its own country and wants to make

:24:51. > :24:55.profits out of the British industry to put back into it state industry.

:24:56. > :24:59.That happened with the railway industry. They want to make money

:25:00. > :25:09.at the expense of their own state companies. We sold off energy

:25:10. > :25:14.production. How did we end up in a position where our nuclear capacity

:25:15. > :25:18.will be built by a company owned by a socialist date, France, and

:25:19. > :25:26.funded by a communist one, China, for vital infrastructure? I am not

:25:27. > :25:31.suggesting that is in the national interest. I am saying we can pick

:25:32. > :25:35.any one example and say it is a shame. The simple matter of the

:25:36. > :25:40.fact is the owners are having to make decisions. Not just

:25:41. > :25:44.Grangemouth, businesses are making decisions about what is the common

:25:45. > :25:50.good. Not just in the shareholders' interest. For employees, customers.

:25:51. > :25:56.What is in the common good when prices go up by 10% and the reason

:25:57. > :26:00.is that 20 years ago they shut every coal pit down in this country,

:26:01. > :26:03.the Germans kept theirs open and subsidised it and now we have the

:26:04. > :26:12.Germans doing away with nuclear power and they have coal. Under the

:26:13. > :26:18.Labour government, in 2008, the climate change Act was passed. Well

:26:19. > :26:22.before that, and you know yourself, they shut down the coal mines to

:26:23. > :26:26.smash the National Union of Mineworkers because they dared to

:26:27. > :26:31.stand up for people in their community. Even if we wanted to

:26:32. > :26:36.reopen the coalmines, it would be pointless. Under the 2008 Act, we

:26:37. > :26:42.are not meant to burn more coal. The can, as if you spent some of

:26:43. > :26:51.the profits, you could have carbon catch up. That does not exist on a

:26:52. > :26:54.massive scale. You are arguing the case, Julie Meyer, for

:26:55. > :27:00.entrepreneurs to come to this country. Even Bob Crow is not

:27:01. > :27:07.against that. We are trying to argue, should essential services be

:27:08. > :27:14.in foreign hands? Not those in Silicon round about doing start-ups.

:27:15. > :27:18.I am trying to draw a broader principle than just energy.

:27:19. > :27:25.Something like broadband services, also important to the functioning

:27:26. > :27:30.of the economy. I believe in the UK's ability to innovate. When we

:27:31. > :27:35.have businesses that play off broadband companies to get the best

:27:36. > :27:41.prices for consumers. These new businesses and business models are

:27:42. > :27:47.the best way. Not to control, but to influence. It will be a disaster.

:27:48. > :27:53.Prices will go up and up as a result. Nissan in Sunderland, a

:27:54. > :27:57.Japanese factory, some of the best cars and productivity. You want

:27:58. > :28:02.that to be nationalised and bring it down to the standard of British

:28:03. > :28:05.Leyland? It is not bring it down to the standard. The car manufacturing

:28:06. > :28:12.base in this country has been wrecked. We make more cars now for

:28:13. > :28:17.20 years -- than in 20 years. Ford's Dagenham produced some of

:28:18. > :28:24.the best cars in the world. Did you buy one? I cannot drive. They moved

:28:25. > :28:31.their plants to other countries, where it was cheaper labour. Would

:28:32. > :28:36.you nationalise Nissan? There should be one car industry that

:28:37. > :28:41.produces cars for people. This week the EU summit was about Angela

:28:42. > :28:49.Merkel's mobile phone being tapped, they call it a handy. We sent Adam

:28:50. > :28:53.to Brussels and told him to ignore the business about phone-tapping

:28:54. > :29:03.and investigate the Prime Minister's policy on Europe instead.

:29:04. > :29:12.I have come to my first EU summit to see how David Cameron is getting on

:29:13. > :29:21.with his strategy to claim power was back from Brussels. Got any powers

:29:22. > :29:25.back yet? Yes! Which ones? Sadly, his fellow leaders were not as

:29:26. > :29:32.forthcoming. Chancellor, are you going to give any powers back to

:29:33. > :29:36.Britain? Has David Cameron asked you for any powers back? The president

:29:37. > :29:45.of the commission just laughed, and listen to the Lithuanian President.

:29:46. > :29:54.How is David Cameron's renegotiation strategy going? What's that? He

:29:55. > :29:59.wants powers back for Britain. No one knows what powers David Cameron

:30:00. > :30:07.actually wants. Even our usual allies, like Sweden, are bit

:30:08. > :30:13.baffled. We actually don't know yet what is going through the UK

:30:14. > :30:19.membership. We will await the finalisation of that first. You

:30:20. > :30:24.should ask him, and then tell us! Here is someone who must know, the

:30:25. > :30:30.Dutch Prime Minister, he is doing what we are doing, carrying out a

:30:31. > :30:35.review of the EU powers, known as competencies in the jargon, before

:30:36. > :30:38.negotiating to get some back. Have you had any negotiations with David

:30:39. > :30:45.Cameron over what powers you can bring back from Brussels? That is

:30:46. > :30:49.not on the agenda of this summit. Have you talked to him about it?

:30:50. > :30:55.This is not on the schedule for this summit.

:30:56. > :31:06.David Cameron's advises tummy it is because he is playing the long game.

:31:07. > :31:12.-- David Cameron's advisers tell me. At this summit, there was a task

:31:13. > :31:18.force discussing how to cut EU red tape. Just how long this game is was

:31:19. > :31:25.explained to me outside the summit, by the leader of the Conservatives

:31:26. > :31:28.in the European Parliament. I think the behind-the-scenes negotiations

:31:29. > :31:32.will start happening when the new commissioner is appointed later next

:31:33. > :31:37.year. I think the detailed negotiations will start to happen

:31:38. > :31:41.bubbly after the UK general election. That is when we will start

:31:42. > :31:49.getting all of the detail of the horse trading, and real, Lake night

:31:50. > :31:54.negotiations. Angela Merkel seems keen to rewrite the EU's main

:31:55. > :31:58.treaties to deal with changes in the Eurozone, and that is the mechanism

:31:59. > :32:03.David Cameron would use to renegotiate our membership. Everyone

:32:04. > :32:07.here says his relationship with the German Chancellor is strong. So

:32:08. > :32:13.after days in this building, here is how it looks. David Cameron has a

:32:14. > :32:17.mountain to climb. It is climbable, but he isn't even in the foothills

:32:18. > :32:22.yet. Has he even started packing his bags for the trip?

:32:23. > :32:30.Joining us now, a man who knows a thing or two about the difficulties

:32:31. > :32:33.Prime Minister 's face in Europe. Former Deputy Prime Minister,

:32:34. > :32:37.Michael Heseltine. We are nine months from David Cameron's defining

:32:38. > :32:44.speech on EU renegotiation. Can you think of one area of progress? I

:32:45. > :32:52.don't know. And you don't know. And that's a good thing. Why is it a

:32:53. > :33:03.good thing? Because the real progress goes on behind closed

:33:04. > :33:09.doors. And only the most naive, because the real progress goes on

:33:10. > :33:15.behind closed doors. Because, in this weary world, you and I, Andrew,

:33:16. > :33:21.know full well that the moment you say, I making progress, people say,

:33:22. > :33:27.where? And the machine goes to work to show that the progress isn't

:33:28. > :33:35.enough. So you are much better off making progress as best you can in

:33:36. > :33:41.the privacy of private diplomacy. It is a long journey ahead. In this

:33:42. > :33:46.long journey, do you have a clear sense of the destination? Do you

:33:47. > :33:51.have a clear sense of what powers Mr Cameron wants to negotiate? I have a

:33:52. > :33:57.clear sense of the destination, which is a victory for the campaign

:33:58. > :34:03.that he will win to stay inside the European community. That is the

:34:04. > :34:11.agenda, and I have total support for that. I understand that, but if he

:34:12. > :34:17.is incapable of getting any tangible sign of renegotiation, if he is able

:34:18. > :34:23.only to do what Wilson did in 1975, which was to get a couple of token

:34:24. > :34:28.changes to our membership status, he goes into that referendum without

:34:29. > :34:36.much to argue for. He has everything to argue for. He's got Britain's

:34:37. > :34:39.vital role as a major contributor to the community. He's got Britain's

:34:40. > :34:48.self interest as a major beneficiary, and Britain's vital

:34:49. > :34:52.role in the City of London. He's got everything to argue for. He could

:34:53. > :34:59.argue for that now. He could have a referendum now. He doesn't want one

:35:00. > :35:07.now. I haven't any doubt that he will come back with something to

:35:08. > :35:15.talk about. But it may be slightly different to what his critics, the

:35:16. > :35:19.UK isolationist party people, want. He may, for example, have found that

:35:20. > :35:25.allies within the community want change as well, and he may secure

:35:26. > :35:31.changes in the way the community works, which would be a significant

:35:32. > :35:37.argument within the referendum campaign. Let me give you an

:35:38. > :35:43.example. I think it is a scandal that the European Commission don't

:35:44. > :35:49.secure the auditing of some of the accounts. Perhaps that could be on

:35:50. > :35:52.the agenda. He might find a lot of contributing countries, like

:35:53. > :36:01.Germany, like Colin and, would be very keen. -- like Holland. David

:36:02. > :36:08.vetoed the increase in the European budgets the other day, and he had a

:36:09. > :36:13.lot of allies. So working within Europe on the things that people

:36:14. > :36:17.paying the European bills want is fertile ground. Is John Major right

:36:18. > :36:23.to call for a windfall tax on the energy companies? John is a very

:36:24. > :36:30.cautious fellow. He doesn't say things without thinking them out. So

:36:31. > :36:35.I was surprised that he went for a windfall tax. First of all, it is

:36:36. > :36:40.retrospective, and secondly, it is difficult to predict what the

:36:41. > :36:44.consequences will be. I am, myself, more interested in the other part of

:36:45. > :36:50.his speech, which was talking about the need for the Conservative Party

:36:51. > :36:54.to seek a wider horizon, to recognise what is happening to the

:36:55. > :37:02.Conservative Party in the way in which its membership is shrinking

:37:03. > :37:07.into a southeastern enclave. Are you in favour of a windfall tax? I am

:37:08. > :37:18.not in favour of increasing any taxes. Do you share Iain Duncan

:37:19. > :37:28.Smith's point of view on welfare reform? I think Iain Duncan Smith is

:37:29. > :37:34.right. It is extremely difficult to do, but he is right to try. I think

:37:35. > :37:44.public opinion is behind him, but it isn't easy, because on the fringe of

:37:45. > :37:49.these issues there are genuine hard luck stories, and they are the ones

:37:50. > :37:54.that become the focus of attention the moment you introduce change. It

:37:55. > :38:00.requires a lot of political skill to negotiate your way through that. But

:38:01. > :38:05.isn't Iain Duncan Smith right to invoke the beverage principle, that

:38:06. > :38:11.you should be expected to make a contribution for the welfare you

:38:12. > :38:15.depend on? Yes, he is. I will let you get your Sunday lunch. Thanks

:38:16. > :38:17.for joining us. Coming up in just over 20 minutes, I

:38:18. > :38:35.will be looking Hello. What can be done to cut

:38:36. > :38:40.household energy prices? Christopher Salmon, the Police Commissioner of

:38:41. > :38:46.Dyfed-Powys, the most rural force in England and Wales, gives us his view

:38:47. > :38:55.on Plebgate. Joining me is the liberal Democrat MP and Albert Owen.

:38:56. > :39:01.Thank you for coming in. Let's begin briefly with some problems, I guess

:39:02. > :39:06.is the best way of describing it. Your government's reforms of

:39:07. > :39:13.disability living allowance. People who receive it will know that it is

:39:14. > :39:17.being changed. There are problems in rolling that out across the whole of

:39:18. > :39:24.the UK, it does not reflect well on this major policy of York

:39:25. > :39:28.government's. You run a pilot operation and you see what the

:39:29. > :39:33.problems are and you try and resolve those before rolling it out widely.

:39:34. > :39:38.There are lots of problems, are there not? The whole process is

:39:39. > :39:43.taking longer than they want. They want to make it shorter so when it

:39:44. > :39:47.is rolled out then the process is not as drawn out. For those people

:39:48. > :39:54.in the pilot areas, it can be tricky if there are issues with it. It is

:39:55. > :40:00.right to get it sorted before you roll it out nationally. Albert, this

:40:01. > :40:04.is responsible government? No, it is a flawed system and that is why we

:40:05. > :40:12.are having problems in rolling it out, and people in Wales are

:40:13. > :40:16.suffering. I know when Jenny was in opposition she was critical of the

:40:17. > :40:19.Labour government for its reforms. This government has shown that it

:40:20. > :40:26.cannot work and that is why there are delays. The government are

:40:27. > :40:34.examining problems and it will be rolled out, will it not? What

:40:35. > :40:38.conversations have you had with your constituents? There is a big issue

:40:39. > :40:42.here because we are talking about the honourable people in our

:40:43. > :40:46.society, some are disabled. There have been big problems with this. It

:40:47. > :40:55.is simple in theory to say we are going to be the same across the

:40:56. > :40:58.country but disability is different and people are worried about the

:40:59. > :41:03.Bedroom Tax. There is a lot of pressure on these people, and I

:41:04. > :41:07.think this has been rushed through and they have used the deficit

:41:08. > :41:12.reduction as a cover for this. Yes, we need to reform but we need to get

:41:13. > :41:17.people back to work in droves, and making work pay. This is a crude

:41:18. > :41:25.method to do it and that is why it has gone badly wrong. The budget for

:41:26. > :41:30.support for disabled people has not been cut at all. We are not talking

:41:31. > :41:35.about a massive deficit reduction programme. We are trying to make it

:41:36. > :41:41.fairer and reflect the difficulties just mentioned. Repercussions of the

:41:42. > :41:45.Plebgate affair have been felt across 43 police forces in England

:41:46. > :41:54.and Wales. It has dented public confidence in place. Christopher

:41:55. > :42:01.Salmon is going to open up to the public the way the force deals with

:42:02. > :42:05.complaints, to restore trust. The suggestion that police officers lied

:42:06. > :42:10.to relieve Chief Whip Andrew Mitchell of his job was probed last

:42:11. > :42:13.week. It was denied by the officers involved. The saga began more than a

:42:14. > :42:19.year ago with allegations that Andrew Mitchell calls police

:42:20. > :42:26.officers plebs after an altercation in Downing Street. The indications

:42:27. > :42:33.are being felt 200 miles away at the most rural police force in England

:42:34. > :42:38.and Wales. The whole Plebgate rout --, compensated as it seems, has

:42:39. > :42:46.asked whether the public trust the police. Dyfed-Powys Commissioner

:42:47. > :42:54.Christopher Salmon is ending his first year in the job. It is a very

:42:55. > :42:58.small number of people we're talking about here, but this is the thing

:42:59. > :43:02.about trust - when you lose it it's very corrosive, which is why I think

:43:03. > :43:05.it's so important that those of us involved in the leadership of

:43:06. > :43:09.policing to, if you like, face up to the elephant in the room and to

:43:10. > :43:13.address the problem where we see it. It's the easiest thing in the world

:43:14. > :43:18.to say, it's all fine in my patch, it's OK, and I think in 99.9% of the

:43:19. > :43:22.time that is true, but where there is a problem we have a duty to stand

:43:23. > :43:24.up and say we're going to deal with this. The handling of phone hacking

:43:25. > :43:28.and the Hillsborough disaster have raised concerns about police

:43:29. > :43:31.integrity. Home Secretary Theresa May is introducing a new code for

:43:32. > :43:38.officers and increasing the Independent Police Complaints

:43:39. > :43:41.Commission's powers to investigate the most serious complaints.

:43:42. > :43:47.Christopher Salmon wants to open up to the public so people can see they

:43:48. > :43:52.are dealt with fairly. We want to stop cases becoming serious and nip

:43:53. > :43:56.them in the bud. That is, I think we can do. We can introduce greater

:43:57. > :44:01.independence at the local level and there are models around the country

:44:02. > :44:08.where they are trying different ways of doing this. In haven and some are

:44:09. > :44:11.set there is a residence panel. There is a different model in

:44:12. > :44:15.Wiltshire and one in greater Manchester, and I am going to be the

:44:16. > :44:23.best magpie I can and steal the ideas, where I can, for Dyfed-Powys.

:44:24. > :44:27.In California, police routinely on video cameras to record dealings

:44:28. > :44:35.with the public. This is giving me the view of everything I see. It has

:44:36. > :44:40.cut complaints by 90%, and in incidents where officers used force,

:44:41. > :44:45.by 60%. Hampshire police have introduced cameras to 450 offices.

:44:46. > :44:51.Widespread trials across England and Wales are planned. They are backed

:44:52. > :44:55.by Conservative MP and special constable David Davis who is keen to

:44:56. > :45:03.emphasise the strengths of British policing. It is incumbent for all

:45:04. > :45:09.police officers to behave. I know what a great job they do, generally,

:45:10. > :45:12.and on this occasion, a small number have let down the grid image that

:45:13. > :45:18.the police have. Across the rest of the world, which is policing has a

:45:19. > :45:23.good reputation, and I think we are the best police force in the world.

:45:24. > :45:31.I am proud that we do not carry firearms. This view is endorsed by

:45:32. > :45:40.this MP who is taking evidence on the Plebgate affair. There have been

:45:41. > :45:45.excellent results in Wales. Crime has gone down by 25% in some areas

:45:46. > :45:48.and we have done an excellent job. Incidents like this distract from

:45:49. > :45:53.the good work that the police are doing. In difficult times, the

:45:54. > :45:59.police are doing an excellent job with limited funds. I trust them.

:46:00. > :46:07.The crime figure is the lowest recorded figure since surveys began

:46:08. > :46:11.in 1981. Following Plebgate, one in four people told a survey that they

:46:12. > :46:16.were less likely to trust the police. It is an irony that doubts

:46:17. > :46:19.about the integrity of officers are there when according to the

:46:20. > :46:25.statistics they are having their best results in fighting crime for a

:46:26. > :46:30.generation. The point made by Adrian is that crime levels seem to be low

:46:31. > :46:39.but faith or trust in the police is not what it was. How do you match up

:46:40. > :46:47.the two? These issues with Hillsborough are just now coming to

:46:48. > :46:55.light, and Plebgate has damaged that reputation. Community policing is

:46:56. > :47:00.very good but these incidents reflect very badly. I think it is a

:47:01. > :47:04.good idea to have more independence at an early stage because many

:47:05. > :47:07.complaints that I have handled on behalf of constituents have been

:47:08. > :47:11.internal, and the police have investigated them themselves, and

:47:12. > :47:18.people are not satisfied with the conclusions. One good thing I think

:47:19. > :47:23.they can do is enable that to happen. Jenny, there has been much

:47:24. > :47:30.debate with the future of the PCC, where do they stand with this?

:47:31. > :47:33.Should they remain? I do not know they should carry on how they are.

:47:34. > :47:44.The current situation is not working, and the IPCC needs more

:47:45. > :47:49.resources and more people. Christopher Salmon said more public

:47:50. > :47:53.should be involved with greater transparency, and at the moment is

:47:54. > :48:01.the police investigate themselves in bigger cases. I think we need a

:48:02. > :48:05.really good independent investigation so people can have

:48:06. > :48:09.faith in Nat. Having trust in the police is absolutely crucial, and it

:48:10. > :48:14.is only a small number of people who are tarnishing the reputation of the

:48:15. > :48:18.overwhelming majority of the police who are completely honest. We need

:48:19. > :48:22.to make sure that that trust carries on and we need to make sure there is

:48:23. > :48:27.an independent body to make sure people believe what they are seeing.

:48:28. > :48:35.There were a few ideas in Haven's package there. One way to protect

:48:36. > :48:42.the police might be a camera being worn by the police. What you make of

:48:43. > :48:45.that? I think they are doing that in big demonstrations and marches in

:48:46. > :48:51.our large towns and cities. Yes, let's be more open. We should not

:48:52. > :48:56.have cover ups because that is what damages the reputation of the

:48:57. > :48:59.police. It is the cover up afterwards. I do agree with what the

:49:00. > :49:03.Police Commissioner said. The more involvement from the public, the

:49:04. > :49:09.better. The more we see what is happening, the better. There is more

:49:10. > :49:14.surveillance, and people were wary of that but I think it has proved to

:49:15. > :49:21.be a good thing. It protects the police as well, not just the public.

:49:22. > :49:26.In terms of the politics of this, Andrew Mitchell was painted as the

:49:27. > :49:30.baddie at the beginning of this. Not so much now, there seems to be

:49:31. > :49:36.support from all four corners of the House. What he did was wrong, he

:49:37. > :49:40.admitted he lost his temper with the police. He has admitted that and

:49:41. > :49:47.said sorry. It looks as though the police have tried to construe a

:49:48. > :49:50.story, and they should apologise. This senior officers have apologised

:49:51. > :49:54.and so should the individual members of the police. Wipe the slate clean

:49:55. > :49:58.and move forward. This is a good idea either Police Commissioner to

:49:59. > :50:07.get more people involved. The IPCC should be left to deal with the most

:50:08. > :50:12.serious crimes. The ones at the lower levels should be dealt with by

:50:13. > :50:15.the police. Domestic energy prices are dominating the political agenda

:50:16. > :50:19.at the moment with politicians having their say. This week we will

:50:20. > :50:23.get the chance to hear from energy providers when representatives from

:50:24. > :50:31.the big energy companies appear before the energy select committee.

:50:32. > :50:38.The intervention of John Major sent tempers rising at Prime Minister 's

:50:39. > :50:43.questions. There is a crisis in energy and many people are worried.

:50:44. > :50:49.It is way beyond anything I think is acceptable. There were a number of

:50:50. > :50:53.ideas that show Ed Miliband is in the right place, but I do not think

:50:54. > :50:57.it is a workable opposition. Without some action, if we have a hard

:50:58. > :51:01.winter, there will be many people who will have to choose between

:51:02. > :51:05.keeping warm and eating. I do not think that is acceptable so I think

:51:06. > :51:09.there is a real chance this winter that the government will be forced

:51:10. > :51:13.to provide more assistance to people who are facing real difficulties. If

:51:14. > :51:17.that proves to be the case then I think it will be entirely reasonable

:51:18. > :51:22.for the Chancellor to recoup that money back from the energy companies

:51:23. > :51:27.in a one off fee, given the scale of their fees and the unjustified

:51:28. > :51:40.nature of the increases they have proposed. A windfall tax? Yes. It

:51:41. > :51:43.will be imposed retrospectively. The Prime Minister said that anyone who

:51:44. > :51:48.wants to intervene directly in energy markets was living in a

:51:49. > :51:55.Marxist universe. Can he tell the house how he feels now that the red

:51:56. > :52:05.peril has claimed for John Major? We are intervening! I am not surprised

:52:06. > :52:08.that he wants to quote the last Conservative Prime Minister and also

:52:09. > :52:13.forget the mess that the people in between made of art country. The

:52:14. > :52:17.former Prime Minister says that given the scale of profits, we

:52:18. > :52:23.should recoup that money. He wants to do it through a windfall tax. I

:52:24. > :52:26.say we need a price freeze. What does the Prime Minister wants to do

:52:27. > :52:32.to recoup that money for the consumer? Let me answer the

:52:33. > :52:39.question. We need to roll back some of the green regulations and

:52:40. > :52:50.charges! Yes, yes! We all know who put them in place. Jenny, that was

:52:51. > :52:53.David Cameron telling Ed Miliband about green levies. He wants to roll

:52:54. > :52:59.them back much to the consternation of your Liberal Democrat colleagues

:53:00. > :53:08.and the Deputy Prime Minister. What is your take? I think it is

:53:09. > :53:12.short-sighted. I do not know where the money should come from. We have

:53:13. > :53:16.to invest in low carbon technologies or we will end up with increasing

:53:17. > :53:23.dependence on fossil fuels, and they are running out. We need to take the

:53:24. > :53:28.long view and these things take a long time to set up. We need is to

:53:29. > :53:32.reduce the amount of carbon we are producing. Whether that is view

:53:33. > :53:37.levies on bills or other ways using taxation, I do not have a clear

:53:38. > :53:41.view, but I do think we need to make sure we are investing in that for

:53:42. > :53:46.the future. I assume you were in the Commons on Wednesday. What did you

:53:47. > :53:52.think about the Prime Minister? I was surprised. We can look at these

:53:53. > :53:56.things but I do not think we should roll back levies and I think it will

:53:57. > :54:00.be short-sighted for the future. Albert, you will be on the select

:54:01. > :54:05.committee and will have the opportunity to put the questions to

:54:06. > :54:10.the top six this week. What is the first question you want to ask? Why

:54:11. > :54:16.this is becoming a trend. The price of gas has spiked in the past and we

:54:17. > :54:21.have accepted that is the case. But not year-on-year. Going back to what

:54:22. > :54:28.John Major has said, David Cameron is behind this. 18 months ago he had

:54:29. > :54:38.a summit in Downing Street, he was only there for a few minutes, and he

:54:39. > :54:43.said he had sorted it out. They are going to put up a medium tariff and

:54:44. > :54:50.everybody will get that. We need to ask why year-on-year there will be a

:54:51. > :54:56.rise. If you put it into context, the green levies we pay our 9% of

:54:57. > :55:00.the total bill. Only 2% are green levies of that 9%. The rest are

:55:01. > :55:03.social levies which I think people will agree we need to help the most

:55:04. > :55:08.honourable heat their homes in winter. This year on year rise is

:55:09. > :55:13.hurting people in Wales and across the country. We pay more for

:55:14. > :55:20.electricity in Wales and many other regions in the UK. We produce an

:55:21. > :55:24.awful lot of it. It is an unfair system. That is why Ed Miliband has

:55:25. > :55:30.called for a reform of the market, a market which is not working. There

:55:31. > :55:35.is a suggestion, is there not, from the Conservatives and possibly from

:55:36. > :55:41.the Liberal Democrats, that this idea of freezing prices will lead to

:55:42. > :55:46.prices going up before the next general election? Do you want to ask

:55:47. > :56:00.the energy companies about this? We will ask them. They have put it up

:56:01. > :56:07.in the last years. What is important... Ed Miliband introduced

:56:08. > :56:11.a lot of the levies, didn't he? He is making things up on the hoof, but

:56:12. > :56:18.to answer your question, we will be asking that, what Ed Miliband did

:56:19. > :56:24.say is that reforming the markets, which governments can do, and then

:56:25. > :56:32.freeze for small businesses and domestic users, that way businesses

:56:33. > :56:35.will not be hammered by the rise in petrol costs. It is nonsense to say

:56:36. > :56:41.that the government is not reforming the energy markets. The biggest

:56:42. > :56:46.reform that has happened in decades is going through at the moment. The

:56:47. > :56:51.idea that you can freeze energy bills and that will solve it is a

:56:52. > :56:59.total con. Parliamentary language for you there! I am not in

:57:00. > :57:07.Parliament! If they think Labour is going to come in and hike prices

:57:08. > :57:11.up... They are doing it now! What do people think is going to happen to

:57:12. > :57:20.bills once the 20 month period is over? We need to tackle this in an

:57:21. > :57:26.holistic way. The government has invested in the Green Deal, and that

:57:27. > :57:30.will make a big difference in small-scale renewables so people are

:57:31. > :57:43.investing in their own energy. We need to overhaul the old boilers we

:57:44. > :57:48.have and so people will use less. What is the one message you want

:57:49. > :57:52.from the big six this week? We need to make sure they are not ripping

:57:53. > :57:58.off consumers, and a lot of that is around the competitive is of the

:57:59. > :58:02.market. -- competitiveness. They have minute related the money we

:58:03. > :58:05.have and we need to make sure people get a fair deal. Just saying we are

:58:06. > :58:10.going to freeze it is not the way forward. Time for a quick look back

:58:11. > :58:24.at some of the political stories in the week. Some businesses that were

:58:25. > :58:29.mis-sold financial products were going bust while they waited for

:58:30. > :58:32.compensation. It was said that only 32 of the 40,000 businesses affected

:58:33. > :58:38.had been compensated so far. First Minister backed plans to limit

:58:39. > :58:45.nonurgent operations at four hospitals in mid Wales this winter.

:58:46. > :58:52.One MP said that between April and November it would not conduct

:58:53. > :58:54.surgery is. Alan Davies was criticised for giving evasive

:58:55. > :58:59.answers to the environment committee. They said he gave

:59:00. > :59:02.contradictory information and criticised his department for

:59:03. > :59:08.financial mismanagement. The Welsh government said the issues were

:59:09. > :59:11.flawed and inaccurate. The Conservative leader said there

:59:12. > :59:15.should be shorter holidays and hold an extra meeting each week to make

:59:16. > :59:34.proceedings more relevant to the public. Jenny, what is your view? I

:59:35. > :59:39.have had a number of constituents affected by the mis-selling, it is a

:59:40. > :59:44.total scandal. It was a good debate on Thursday, and I hope it is on the

:59:45. > :59:49.government's agenda. MPs in the House on Thursday. They were

:59:50. > :59:53.suggesting that assembly members should squeeze in another session on

:59:54. > :59:59.Thursday and have fewer holidays. What do you think about this idea? I

:00:00. > :00:05.think there might be a case for sitting on Thursday. The reality is

:00:06. > :00:10.that most elected members work outside of what they do in the

:00:11. > :00:15.Chamber as well, and I think that needs recognising. It is a matter

:00:16. > :00:19.for them but, yes, I think they need to extend the working week, and as

:00:20. > :00:26.for holidays, that is a matter for them. I'd take the same holidays as

:00:27. > :00:33.my staff do. I do not have many Sundays. What do you think, Jenny? I

:00:34. > :00:35.think it is fair. I think people need to believe that their

:00:36. > :00:41.politicians are working hard for them. There is an awful lot going on

:00:42. > :00:51.in the Assembly and Parliament that is not what you see on TV. There is

:00:52. > :00:59.a long summer recess, that is the perception. Absolutely! In terms of

:01:00. > :01:05.the kind of work you are doing when you are not in Parliament?

:01:06. > :01:11.Casework. You are happy to defend your record? Absolutely, absolutely.

:01:12. > :01:17.It is important that elected politicians have enough time to talk

:01:18. > :01:18.to their constituents and talk to businesses within their local area

:01:19. > :01:19.so they are well informed businesses within their local area

:01:20. > :01:21.so they are well informed businesses within their local area

:01:22. > :01:32.free school area for into that category. Thank you.

:01:33. > :01:33.Is Labour about to drop its support category. Thank you.

:01:34. > :01:37.Is Labour about to drop its support for High Speed 2, a rail line the

:01:38. > :01:48.party approved while in government? for High Speed 2, a rail line the

:01:49. > :02:01.these green shoots? These are all questions for The Week Ahead.

:02:02. > :02:05.So, HS2. Miss Flint wouldn't answer the question. She's in northern MP

:02:06. > :02:10.too. Ed Balls is comparing it to the Millennium Dome.

:02:11. > :02:15.too. Ed Balls is comparing it to the minute's silence for HS2? It will

:02:16. > :02:20.not be quite as crude as that. They will not stand up and say, we

:02:21. > :02:20.not be quite as crude as that. They senior Labour person said to me it

:02:21. > :02:23.would be a bit senior Labour person said to me it

:02:24. > :02:29.that Gordon Brown and Ed Balls set for the euro back in 97. They will

:02:30. > :02:33.be chucking lots of questions into the air, and the questions will

:02:34. > :02:40.create doubt, and will create the grounds for Labour to say, at some

:02:41. > :02:44.point, we think there is a much much better way of spending the money. It

:02:45. > :02:51.isn't ?42 billion, because that includes a contingency. Let's see

:02:52. > :02:58.what Peter Mandelson had to say about HS2. He was in the government

:02:59. > :03:03.when Labour supported it. Frankly, there was too much of the argument

:03:04. > :03:09.that if everyone else has got a high-speed train, we should have won

:03:10. > :03:15.too. Regardless of need, regardless of cost, and regardless of

:03:16. > :03:20.alternatives. As a party, to be frank, we didn't feel like being

:03:21. > :03:27.trumped by the zeal of the then opposition's support for the

:03:28. > :03:32.high-speed train. We wanted, if anything, to upstage them. So they

:03:33. > :03:39.didn't really need it, and we're only talking about ?50 billion. Why

:03:40. > :03:43.would you take a decision involving ?50 billion in a serious way? For

:03:44. > :03:49.David Cameron, if it becomes clear Labour is against it, he cannot

:03:50. > :03:53.proceed. He indicated last week that he wouldn't proceed if the certainty

:03:54. > :03:58.wasn't there. For Labour, HS2 is really a debate about the deficit by

:03:59. > :04:02.proxy. They think that if you don't go ahead with HS2, that releases

:04:03. > :04:07.tens of billions of pounds to spend on other things, such as public

:04:08. > :04:29.services, without going into boring. I don't think that works because

:04:30. > :04:31.there was a difference between cancelling something that already

:04:32. > :04:34.exists to pay for something else, and cancelling something that does

:04:35. > :04:36.not yet exist and will be paid for over decades to pay for something

:04:37. > :04:40.here and now. Can Labour do this? I know that the line will be, we are

:04:41. > :04:42.not going to build this railway because we are going to build

:04:43. > :04:44.200,000 houses a year. Can they do this without political cost? I think

:04:45. > :04:49.there will be political costs, but they will play this card of we have

:04:50. > :04:54.changed our mind. I think Cameron's line has been very clever, saying we

:04:55. > :04:59.cannot do it without labour. You can put it in two ways. Sorry, we cannot

:05:00. > :05:04.go ahead with it, but Labour has ruined your chance of prosperity, or

:05:05. > :05:10.they can tie themselves to it, and then Labour cannot attack it on

:05:11. > :05:16.great grounds when costs do spire. You can write Labour's script right

:05:17. > :05:23.now. They can say, if we were in charge, the financial management

:05:24. > :05:28.would be much better. This raises some really important questions for

:05:29. > :05:34.the government. They have utterly failed to make the case for HS2.

:05:35. > :05:38.There is a real case to make. Between London and Birmingham it is

:05:39. > :05:43.about capacity not speed. North of Birmingham, it is about

:05:44. > :05:47.connectivity. It is a simple case to make, but it is only in the last

:05:48. > :05:51.month that they have been making that case. It shows really terrible

:05:52. > :05:59.complacency in the coalition that they haven't done that. We'll HS2

:06:00. > :06:03.happen or not? I think it will. For the reasons that Nick outlined,

:06:04. > :06:12.there is not of a constituency for it amongst Northern areas. -- there

:06:13. > :06:18.is enough of a constituency for it. There is private investment as well.

:06:19. > :06:25.It isn't like Heathrow. I say no, because I think Labour will drop

:06:26. > :06:28.their support for it. Caroline Flint said she was in favour of the

:06:29. > :06:34.concept of trains generally, but will it go further than that? It is

:06:35. > :06:39.difficult to see how it will go ahead if Labour will not support it

:06:40. > :06:47.after setting five tests that it clearly will not meet. Some will

:06:48. > :06:52.breathe a sigh of relief. Some will say, even in the 20th century, we

:06:53. > :06:58.cannot build a proper rail network. The economy was another big story of

:06:59. > :07:02.the week. We had those GDP figures. There is a video the Tories are

:07:03. > :07:07.releasing. The world premiere is going to be here. Where's the red

:07:08. > :07:11.carpet? It gives an indication of how the Tories will hand Mr Miliband

:07:12. > :07:45.and labour in the run-up to the election. Let's have a look at it.

:07:46. > :07:50.These graphics are even worse than the ones we use on our show! How on

:07:51. > :08:00.earth would you expect that to go viral? It did have a strange feel

:08:01. > :08:04.about it. It doesn't understand the Internet at all. Who is going to

:08:05. > :08:16.read those little screens between it? Put a dog in it! However,

:08:17. > :08:21.putting that aside, I have no idea that that is going to go viral. The

:08:22. > :08:27.Tories are now operating - and I say Tories rather than the coalition -

:08:28. > :08:32.on the assumption that the economy is improving and will continue to

:08:33. > :08:37.improve, and that that will become more obvious as 2014 goes on. We

:08:38. > :08:44.just saw their how they will fight the campaign. Yes, and at the

:08:45. > :08:48.crucial moment, you will reach the point where wages. To rise at a

:08:49. > :08:53.faster pace than inflation, and then people will start to, in the words

:08:54. > :08:58.of Harold Macmillan, feel that they have never had it so good. That is

:08:59. > :09:06.the key moment. If the economy is growing, there is a rule of thumb

:09:07. > :09:09.that the government should get a benefit. But it doesn't always work

:09:10. > :09:13.like that. The fundamental point here is that Ed Miliband has had a

:09:14. > :09:18.great month. He has totally set the agenda. He has set the agenda with

:09:19. > :09:23.something - freezing energy prices - that may not work. That video shows

:09:24. > :09:26.that the Conservatives want to get the debate back to the

:09:27. > :09:34.fundamentals. That this is a party that told us for three years that

:09:35. > :09:39.this coalition was telling us to -- was taking us to hell on a handcart.

:09:40. > :09:46.That doesn't seem to have happened. The energy price was a very clever

:09:47. > :09:50.thing, at the party conference season, which now seems years ago.

:09:51. > :09:57.They saw that the recovery was going to happen, so they changed the

:09:58. > :10:01.debate to living standards. Some economists are now privately

:10:02. > :10:06.expecting growth to be 3% next year, which was inconceivable for five

:10:07. > :10:08.months ago. If growth is 3% next year, living standards will start to

:10:09. > :10:15.rise again. Where does Labour go then? I would go further, and say

:10:16. > :10:20.that even though Ed Miliband has made a small political victory on

:10:21. > :10:26.living standards, it hasn't registered in the polls. Those polls

:10:27. > :10:30.have been contracted since April -- have been contracting since April.

:10:31. > :10:35.That macro economic story matters more than the issue of living

:10:36. > :10:39.standards. The interesting thing about the recovery is it confounds

:10:40. > :10:45.everybody. No one was predicting, not the Treasury, not the media, not

:10:46. > :10:52.the IMF, not the academics, and the only people I can think of... I fit

:10:53. > :10:58.-- I thought they knew everything! The only people I know who did are

:10:59. > :11:01.one adviser who is very close to George Osborne, and the clever hedge

:11:02. > :11:06.fund is who were buying British equities back in January. Because

:11:07. > :11:10.the Treasury's record is so appalling, no one believe them, but

:11:11. > :11:16.they were saying around February, March this year, that by the end of

:11:17. > :11:24.the summer, the recovery would be gathering momentum. For once, they

:11:25. > :11:28.turned out to be right! They said that the economy would be going gang

:11:29. > :11:35.bust is! Where did the new Tory voters come from? I agree, if the

:11:36. > :11:44.economic recovery continues, the coalition will be stronger. But

:11:45. > :11:48.where will they get new voters from? For people who sign up to help to

:11:49. > :11:52.buy, they will be locked into nice mortgages at a low interest rate,

:11:53. > :11:58.and just as you go into a general election, if you are getting 3%

:11:59. > :12:01.growth and unemployment is down, the Bank of England will have to review

:12:02. > :12:06.their interest rates. People who are getting nice interest rates now may

:12:07. > :12:13.find that it is not like that in a few months time. The point John

:12:14. > :12:17.Major was making implicitly was that Mrs Thatcher could speak to people

:12:18. > :12:22.on low incomes. John Major could not speak to them -- John Major could

:12:23. > :12:26.speak to them. But this coalition cannot speak to them. This idea

:12:27. > :12:34.about the reshuffle was that David Cameron wanted more Northern voices,

:12:35. > :12:39.more women, to make it look like it was not a party of seven men. When

:12:40. > :12:44.David Cameron became leader, John Major said, I do not speak very

:12:45. > :12:48.often, but when I do, I will help you, because I think you are good

:12:49. > :12:53.thing and I do not want to be like Margaret Thatcher. But that speech

:12:54. > :12:57.was clearly a lament for the party he believed that David Cameron was

:12:58. > :13:03.going to lead and create, but that isn't happening. And energy prices

:13:04. > :13:08.continue into this coming week. We have the companies going before a

:13:09. > :13:12.select committee. My information is they are sending along the secondary

:13:13. > :13:17.division, not the boss. How can they get along -- get away with that? I

:13:18. > :13:22.got the letter through from British Gas this week explaining why my

:13:23. > :13:26.bills are going up, and at no point since this became a story have any

:13:27. > :13:31.of the big companies handled it well. I will have to leave it there.

:13:32. > :13:38.Make sure you pay your bill! That's it for today. The Daily Politics is

:13:39. > :13:45.back on BBC Two tomorrow. I will be back here on BBC One next Sunday.

:13:46. > :13:52.Remember, if it's Sunday, it is The Sunday Politics.