26/01/2014

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:00:38. > :00:42.Morning folks. Welcome to the Sunday Politics.

:00:43. > :00:45.Ed Balls has gone socialist and fiscal Conservative in one speech.

:00:46. > :00:50.He promises to balance the biggest bit of the budget. And to bring back

:00:51. > :00:54.the 50p top tax rate. Political masterstroke, or a return to old

:00:55. > :00:57.Labour? If you go to work by public

:00:58. > :01:00.transport, chances are the price of your ticket has just gone up -

:01:01. > :01:04.again. We'll speak to Transport Secretary Patrick McLoughlin. He's

:01:05. > :01:08.our Sunday Interview. And it's been another wet week

:01:09. > :01:13.across much of the UK, but what's the outlook according to this man?

:01:14. > :01:17.This morning.This morning. Held in recent years by party

:01:18. > :01:40.In the Midlands, is fracking coming to a town near you?

:01:41. > :01:44.And with me - as always - the political panel so fresh-faced,

:01:45. > :01:47.entertaining and downright popular they make Justin Bieber look like a

:01:48. > :01:50.boring old has-been just desperate to get your attention. Nick Watt,

:01:51. > :01:53.Helen Lewis and Janan Ganesh, and they'll be tweeting quicker than a

:01:54. > :02:10.yellow Lamborghini racing down Miami Beach. Being political nerds, they

:02:11. > :02:14.have no idea what I'm talking about. Ed Balls sprung a surprise on us all

:02:15. > :02:18.yesterday. We kinda thought Labour would head for the election with a

:02:19. > :02:21.return to the 50p top rate of tax. But we didn't think he'd do it now.

:02:22. > :02:25.He did! The polls say it's popular, Labour activists now have a spring

:02:26. > :02:29.in their step. The Tories say it's a return to the bad old days of the

:02:30. > :02:31.'70s, and bosses now think Labour is anti-business. Here's the Shadow

:02:32. > :02:33.Chancellor speaking earlier this morning. I was part of a Government

:02:34. > :02:36.which did very many things to open up markets, to make the Bank of

:02:37. > :02:38.England independent, to work closely with business, but the reality is we

:02:39. > :02:41.are in very difficult circumstances and because if I'm honest you,

:02:42. > :02:44.George Osborne's failure in the last few years, those difficult

:02:45. > :02:54.circumstances will last into the next Parliament. Business people

:02:55. > :03:00.have said to me they want to get the deficit down, of course they do But

:03:01. > :03:03.to cut the top rate... It is foolish and feeds resentment I want to do

:03:04. > :03:08.the opposite and say look, pro-business, pro investment, pro

:03:09. > :03:12.market, but pro fairness. Let's get this deficit down in a fairway and

:03:13. > :03:19.make the reforms to make our economy work for the long term. What are the

:03:20. > :03:26.political implications of Labour now in favour of a 50%, in practise 352%

:03:27. > :03:29.top rate of tax? One of the political implications I don't think

:03:30. > :03:33.exist is that they'll win new voters. I'm not sure many people out

:03:34. > :03:37.there would think, I would love to vote for Ed Miliband but I'm not

:03:38. > :03:43.sure if he wants to tax rich people enough. It will con Dale their

:03:44. > :03:51.existing vote but I don't think it is the kind of, in the 1990s we

:03:52. > :03:54.talked about triangulation, moving beyond your core vote, I don't think

:03:55. > :03:58.it is a policy like that. If there has been a policy like that this

:03:59. > :04:02.year, this month, it has been the Tories' move on minimum wage. I

:04:03. > :04:06.thought Labour would come back with their own version, a centre-right

:04:07. > :04:11.policy, and instead they have done this. I think we talk about the 35%

:04:12. > :04:17.strategy that Labour supposed will have, I think it is a policy in that

:04:18. > :04:24.direction rather than the thing Tony Blair or Gordon Brown would have

:04:25. > :04:30.done. Where he was not clear is on how much it would raise. We know the

:04:31. > :04:35.sum in the grand scheme of things isn't much, the bedroom tax was

:04:36. > :04:43.about sending a message. What we are going to see is George Osborne and

:04:44. > :04:49.Ed Balls lock as they try to push the other one into saying things

:04:50. > :04:57.that are unpopular. The Tories, ?150,000 a year, that's exactly

:04:58. > :05:01.where Ed Balls want them to be. All three main parties have roughly the

:05:02. > :05:05.same plan, to run a current budget surplus by the end of the next

:05:06. > :05:10.Parliament. George Osborne said ?12 billion of welfare cuts, hasn't said

:05:11. > :05:15.how he is going to do it. Ed Balls is giving an idea that he is going

:05:16. > :05:19.to restore this 50 persons rate The contribution of that will be

:05:20. > :05:24.deminimus. It is not much, but what does it say about your values.

:05:25. > :05:29.Because it is that package, it is cleverer than people think. Where

:05:30. > :05:32.the challenge is is the question that Peter Mandelson posed at the

:05:33. > :05:37.last election, which is can the Labour Party win a general election

:05:38. > :05:40.if it doesn't have business on its side? That's the big challenge and

:05:41. > :05:45.that's the question looking difficult for them this morning

:05:46. > :05:50.Does it matter if Labour has business on its side. I thought the

:05:51. > :05:54.most fascinating thing about this announcement is it came from the guy

:05:55. > :05:59.mindful of business support, Ed Balls. When in opposition and when a

:06:00. > :06:05.Minister and as a shadow as a result, he's been far more conscious

:06:06. > :06:10.than Ed Miliband about the need not to alienate the CB Bill. In the

:06:11. > :06:14.run-up of an election. This is a measure of Ed Miliband's strength in

:06:15. > :06:19.the Labour Party, that his view of things can prevail so easily over a

:06:20. > :06:25.guy who for the last 15 years has taken a different view. Eight out of

:06:26. > :06:30.ten businesses according to the CBI don't want us to leave business

:06:31. > :06:35.Business is in a bit of a cleft stick. Ed Miliband would like to see

:06:36. > :06:38.businesses squealing, and Ed Balls is clearly not so comfortable on

:06:39. > :06:43.that one. There's a difference on that. Mind you, they were squealing

:06:44. > :06:47.this morning from Davos. They probably had hangovers as well. The

:06:48. > :06:52.other thing they would say is this is not like Ed Balls thinks that 50p

:06:53. > :06:57.is the optimal rate forever, it what go eventually. Isn't that what

:06:58. > :07:02.politicians said when income tax was introduced? Yeah, in '97 Labour

:07:03. > :07:07.regarded 40 persons as the rate where it would stay.

:07:08. > :07:12.It's been a bad week for the Lib Dems. Again. Actually, it's been one

:07:13. > :07:15.of the worst weeks yet for Nick Clegg and his party in recent

:07:16. > :07:17.memory, as they've gone from talking confidently about their role in

:07:18. > :07:20.Government to facing a storm of criticism over claims of

:07:21. > :07:23.inappropriate sexual behaviour by a Lib Dem peer, Chris Rennard, and a

:07:24. > :07:27.Lib Dem MP, Mike Hancock. Here's Giles with the story of the week. A

:07:28. > :07:33.challenge to Nick Clegg's authority as he face as growing row over the

:07:34. > :07:37.Liberal Democrat... I want everyone to be treated with respect by the

:07:38. > :07:44.Liberal Democrats. We are expecting him to show moral leadership on our

:07:45. > :07:49.behalf. A good man has been publicly destroyed by the media with the

:07:50. > :07:53.apparent support of Nick Clegg. I would like Nick Clegg to show

:07:54. > :08:00.leadership and say, this has got to stop. When Nick Clegg woke up on

:08:01. > :08:06.Monday morning he knew he was in trouble, staring down the barrel of

:08:07. > :08:11.a stand justify with Lord Rennard over allegations that the peer had

:08:12. > :08:16.inappropriately touched a number of women. Chris Rennard thought he was

:08:17. > :08:20.cleared. Nick Clegg wanted more I said if he doesn't apologise, he

:08:21. > :08:25.should withdraw from the House of Lords. If he does that today, what

:08:26. > :08:32.do you do then? I hope he doesn t. I think no apology, no whip. 2014 was

:08:33. > :08:37.starting badly for the Liberal Democrats. Chris Rennard refused to

:08:38. > :08:43.apologise, saying you can't say sorry for something you haven't

:08:44. > :08:46.done. The and he was leaning towards legal action. Butch us friends

:08:47. > :08:50.better defending Pym and publicly. This is a good, decent man, who has

:08:51. > :08:55.been punished by the party, with the leadership of the party that seems

:08:56. > :09:01.to be showing scant regard for due process. But his accusers felt very

:09:02. > :09:06.differently. It is untenable for the Lib Dems to have a credible voice on

:09:07. > :09:10.qualities and women's issues in the future if Lord Rennard was allowed

:09:11. > :09:17.to be back on the Lib Dem benches in the House of Lords. Therein lay the

:09:18. > :09:20.problem that exposed the weaknesses of the Lib Dem leaders. The party's

:09:21. > :09:27.internal structures have all the simplicity of a circuit diagram for

:09:28. > :09:32.a supercomputer, exposing the complexity of who runs the Liberal

:09:33. > :09:36.Democrats? The simple question that arose of that was can the leader of

:09:37. > :09:42.the Lib Dems remove a Lib Dem peer? The simple answer is no. The Lib Dem

:09:43. > :09:48.whips in the Lords could do it but if enough Lib Dem peers disagreed,

:09:49. > :09:51.they could overrule it. Some long-stand ng friends of roar

:09:52. > :09:56.Rennard think he is either the innocent victim of a media

:09:57. > :10:00.witch-hunt or at the least due process has been ridden over rough

:10:01. > :10:05.shot by the leadership. Nobody ever did spot Lord Rennard as he didn't

:10:06. > :10:09.turn up to the Lords, will citing ill health. But issued a statement

:10:10. > :10:13.that ruled out an apology. He refused to do so and refused to

:10:14. > :10:17.comply with the outcome of that report, so there was no alternative

:10:18. > :10:21.but for the party to suspend his membership today. On Wednesday Nick

:10:22. > :10:25.Clegg met Lib Dem peers, not for a crunch decision, but to discuss the

:10:26. > :10:29.extraordinary prospect of legal action against the party by the man

:10:30. > :10:33.long credited with building its success. The situation was making

:10:34. > :10:37.the party look like a joke. One Tory MP said to one of my colleagues this

:10:38. > :10:40.morning, the funny thing about the Liberal Democrats, you managed to

:10:41. > :10:44.create a whole sex scandal without any sex. And we can laugh at

:10:45. > :10:50.ourselves but actually it is rather serious. And it got more serious,

:10:51. > :10:54.when an MP who had resigned the Lib Dem whip last year was expanded from

:10:55. > :10:58.the party over a report into allegations of serious and unwelcome

:10:59. > :11:03.sexual behaviour towards a constituent. All of this leaves the

:11:04. > :11:08.Lib Dems desperately wishing these sagas had been dealt with long ago

:11:09. > :11:13.and would now go away. Nick Clegg ended the week still party leader.

:11:14. > :11:20.Lord Rennard, once one of their most powerful players, ended the week,

:11:21. > :11:23.for now, no longer even in it. Giles on the Lib Dems' disastrous

:11:24. > :11:29.week. Now, as you doubtless already know, on Tuesday Lib Dem MPs will

:11:30. > :11:34.vote to choose a new deputy leader. You didn't know that? You do now.

:11:35. > :11:38.The job of Nick Clegg's number two is to speak with a genuine Lib Dem

:11:39. > :11:41.voice, untainted by the demands of coalition Government. At this point

:11:42. > :11:44.in the show we had expected to speak to all three candidates for the

:11:45. > :11:52.post, held in recent years by party veterans like Vince Cable and Simon

:11:53. > :11:55.Hughes. We thought it being quite a significant week for the party, they

:11:56. > :12:01.might have something to say. And here they are. Well that's their

:12:02. > :12:05.pictures. For various reasons, all three are now unavailable. Malcolm

:12:06. > :12:09.Bruce, he's reckoned to be the outsider. His office said he had a

:12:10. > :12:12."family commitment". Gordon Birtwistle, the Burnley MP, was

:12:13. > :12:16.booked to appear but then told us, "I was at an event last night with

:12:17. > :12:21.Lorely Burt" - she's one of the candidates - "and she told me it was

:12:22. > :12:25.off". And Lorely Burt herself, seen by many as the red hot favourite,

:12:26. > :12:29.told us: "Because of the Rennard thing we don't want to put ourselves

:12:30. > :12:40.in a position where we have to answer difficult questions." How

:12:41. > :12:44.refreshingly honest. Helen, how bad politically is all this for the Lib

:12:45. > :12:47.Dems? What I think is the tragic irony of the Lib Dems is they've

:12:48. > :12:52.been revealed as being too democratic. In the same way that

:12:53. > :12:57.their party conference embarrassed Nick Clegg by voting sings that he

:12:58. > :13:04.signed up to, and now everything has to be run past various

:13:05. > :13:15.sub-committees first. Is it democratic or chaotic? It is

:13:16. > :13:21.Byzantine. Mike Hancock was voluntarily suspended, and this week

:13:22. > :13:26.he was properly suspended. It was new information into the public

:13:27. > :13:33.domain that forced that. I'm already hearing Labour and Conservative

:13:34. > :13:36.Party musing that if it is a long Parliament, we will form a minority

:13:37. > :13:40.Government. It is a disaster for them. Voters like parties that

:13:41. > :13:45.reflect and are interested this their concerns. Parties that are

:13:46. > :13:48.self obsessed turn them off. The third party, if they carry on like

:13:49. > :13:52.this, they'll be the fifth party in the European elections, so they have

:13:53. > :13:58.got to draw a line under this. They do that, if they do, through

:13:59. > :14:02.mediation. As I understand it, Chris Rennard,s who has go devoted his

:14:03. > :14:06.entire life to the Liberal Democrats, and previously the

:14:07. > :14:09.Liberal Party, is keen to draw a line under this. He is up for

:14:10. > :14:14.mediation but he needs to know that the women that he has clearly

:14:15. > :14:17.invaded their personal space, that there wouldn't be a possible legal a

:14:18. > :14:21.action from them. The it is very difficult to see how you could

:14:22. > :14:26.resolve that. Except he is threatening through his friends

:14:27. > :14:30.these famous friends, to spill all the beans about all the party's sex

:14:31. > :14:34.secrets. Isn't the danger for the Lib Dems, this haunts them through

:14:35. > :14:37.to the European elections, where they'll get thumped in the European

:14:38. > :14:41.elections? They'll get destroyed in the European elections, which keeps

:14:42. > :14:47.it salient as a story over the summer. And it has implications for

:14:48. > :14:51.Nick Clegg's leadership. He's done a good job until now, perhaps better

:14:52. > :14:54.than David Cameron, of exercising authority over his party. He had a

:14:55. > :14:58.good conference in September. Absolutely, and now the Lib Dems

:14:59. > :15:03.have looked like a party without a leader or a leadership structure.

:15:04. > :15:07.Part of that is down to the chaotic or Byzantine organisational

:15:08. > :15:11.structure of the party. Part of it is Nick Clegg's failure to assert

:15:12. > :15:19.himself and impose himself over events. Is it Byzantine or

:15:20. > :15:30.Byzantine. It is labyrinthine. You don't get these words on the Today

:15:31. > :15:34.programme. The cost of living has been back on the agenda this week as

:15:35. > :15:37.Labour and the Tories argue over whether the value of money in your

:15:38. > :15:40.pocket is going up or down. Well there's one cost which has been

:15:41. > :15:44.racing ahead of inflation and that's the amount you have to pay to travel

:15:45. > :15:47.by train, by bus and by air. Rail commuters have been hard hit over

:15:48. > :15:50.the last four years, with the cost of the average season ticket going

:15:51. > :15:57.up by 18% since January 2010, while wages have gone up by just 3.6% over

:15:58. > :16:03.the same period. It means some rail users are paying high prices with

:16:04. > :16:07.commuters from Kent shelling out more than ?5,000 per year from the

:16:08. > :16:12.beginning of this month just to get to work in London. It doesn't

:16:13. > :16:18.compare well with our European counterparts. In the UK the average

:16:19. > :16:26.rail user spends 14% of their average income on trains. It is just

:16:27. > :16:31.1.5% in Italy. Regulated fares like season tickets went up 3.1% at the

:16:32. > :16:35.beginning of this month, and with ministers keen to make passengers

:16:36. > :16:39.fought more of the bills, there are more fare rises coming down the

:16:40. > :16:53.track. And Patrick McLoughlin joins me now for the Sunday Interview

:16:54. > :16:57.Welcome. You claim to be in the party of hard-working people, so why

:16:58. > :17:01.is it that since you came to power rail commuters have seen the cost of

:17:02. > :17:10.their average season ticket going up in money terms by over 18% while

:17:11. > :17:15.their pay has gone up in money terms by less than four? I would point out

:17:16. > :17:21.that this is the first year in ten years that we have not had an above

:17:22. > :17:26.inflation increase on fares. The Government accepts we have got to do

:17:27. > :17:34.as much as we can to help the passengers. A big inflation increase

:17:35. > :17:41.since 2010. This is the first year in ten years that it has not been

:17:42. > :17:46.above RPI, but we are also investing huge amounts of money into the

:17:47. > :17:51.railways, building new trains for the East Coast Main Line and the

:17:52. > :17:58.great Western. We are spending 500 million at Birmingham station, this

:17:59. > :18:01.is all increasing capacity, so we are seeing investments. Over the

:18:02. > :18:11.next five years Network Rail will invest over ?38 billion in the

:18:12. > :18:16.network structure. We also have an expensive railway and it is ordinary

:18:17. > :18:22.people paying for it. A season ticket from Woking in Surrey,

:18:23. > :18:28.commuter belt land in London, let's look at the figures. This is a

:18:29. > :18:37.distance of over 25 miles, it cost over ?3000 per year. We have picked

:18:38. > :18:46.similar distances to international cities.

:18:47. > :18:54.The British commuter is being ripped off. The British commuter is seeing

:18:55. > :18:59.record levels of investment in our railways. The investment has to be

:19:00. > :19:03.paid for. We are investing huge amounts of money and I don't know

:19:04. > :19:20.whether the figures you have got here... I'm sure they are likewise,

:19:21. > :19:29.as you have managed to do... White -- ten times more than the Italian

:19:30. > :19:33.equivalent. We have seen transformational changes in our

:19:34. > :19:38.railway services and we need to carry on investing. We were paying

:19:39. > :19:43.these prices even before you started investing. We have always paid a lot

:19:44. > :19:53.more to commute in this country than our European equivalents. I'm not

:19:54. > :19:59.quite sure I want to take on Italy is a great example. You would if you

:20:00. > :20:05.were a commuter. You is a great example. You would if you

:20:06. > :20:11.the other rates of taxation has to be paid as well. Isn't it the case

:20:12. > :20:15.they are making profits out of these figures and using them to subsidise

:20:16. > :20:23.cheaper fares back in their homeland? The overall profit margin

:20:24. > :20:27.train companies make is 3%, a reasonable amount, and we have seen

:20:28. > :20:31.a revolution as far as the railway industry is concerned.

:20:32. > :20:37.a revolution as far as the railway 20 years we have seen passenger

:20:38. > :20:41.journeys going from 750 million to 1.5 billion. That is a massive

:20:42. > :20:46.revolution in rail. Let me look 1.5 billion. That is a massive

:20:47. > :20:46.spokesperson for the German government, the Ministry of

:20:47. > :21:03.transport. They are charging huge fares in

:21:04. > :21:09.Britain to take that money back to subsidise fares in Germany. What do

:21:10. > :21:13.you say to that? We are seeing British companies winning contracts

:21:14. > :21:18.in Germany. The National Express are winning contracts to the railways.

:21:19. > :21:24.What about the ordinary commuter? They are paying through the nose so

:21:25. > :21:29.German commuters can travel more cheaply. We are still subsidising

:21:30. > :21:33.the railways in this country, but overall we want to reduce the

:21:34. > :21:40.subsidy we are giving. We are still seeing growth in our railways and I

:21:41. > :21:49.want to see more people using them. Why do you increase rail fares at

:21:50. > :21:54.the higher RPI measure than the lower CPI measurement? That is what

:21:55. > :21:58.has always been done, and we have stopped. This is the first time in

:21:59. > :22:08.ten years that we have not raised the rail figures above RPI. You

:22:09. > :22:13.still link fares to RPI. You use the lower CPI figure when it suits you,

:22:14. > :22:18.to keep pension payments down for example, but the higher one when it

:22:19. > :22:22.comes to increasing rail fares. We are still putting a huge subsidy

:22:23. > :22:27.into the rail industry, there is still a huge amount of money going

:22:28. > :22:33.from the taxpayer to support the rail industry. I am not asking you

:22:34. > :22:41.about that, I am asking you why you link the figures to the higher RPI

:22:42. > :22:47.vesture Mark if we are going to pay for the levels of investment, so all

:22:48. > :22:52.the new trains being built at Newton Aycliffe for the East Coast Main

:22:53. > :22:56.Line and the great Western, ?3. billion of investment, new rolling

:22:57. > :23:00.stock coming online, then yes, we have to pay for it, and it is a

:23:01. > :23:14.question of the taxpayer paying for it all the -- or the passenger.

:23:15. > :23:17.You have capped parking fines until the next election, rail commuters we

:23:18. > :23:27.have seen the cost of their ticket has gone up by nearly 20%, you are

:23:28. > :23:34.the party of the drivers, not the passengers, aren't you?

:23:35. > :23:48.We are trying to help everybody who has been struggling. I think we are

:23:49. > :23:53.setting out long-term plans for our railways, investing heavily in them

:23:54. > :23:58.and it is getting that balance right. But you have done more for

:23:59. > :24:05.the driver than you have for the user of public transport. I don t

:24:06. > :24:11.accept that. They are paying the same petrol prices as 2011. This is

:24:12. > :24:18.the first time in ten years that there has not been an RPI plus

:24:19. > :24:25.rise. We are investing record amounts. Bus fares are also rising,

:24:26. > :24:31.4.2% in real terms in 2010, at a time when real take-home pay has

:24:32. > :24:37.been falling. This hits commuters particularly workers who use buses

:24:38. > :24:42.on low incomes, another cost of living squeeze. I was with

:24:43. > :24:55.Stagecoach in Manchester on Friday, and I saw a bus company investing in

:24:56. > :25:01.new buses. Last week First ordered new buses. Part of your hard-working

:25:02. > :25:08.families you are always on about, they are the ones going to work

:25:09. > :25:11.early in the morning, and yet you are making them pay more for their

:25:12. > :25:18.buses in real terms than they did before. They would be happier if

:25:19. > :25:24.they could travel more cheaply. It is about getting investment in

:25:25. > :25:32.services, it has to be paid for Why not run the old buses for five more

:25:33. > :25:36.years? Because then there is more pollution in the atmosphere, modern

:25:37. > :25:40.buses have lower emissions, and we are still giving huge support

:25:41. > :25:44.overall to the bus industry and that is very important because I fully

:25:45. > :25:53.accept that the number of people, yes, use the train but a lot of

:25:54. > :25:59.people use buses as well. High-speed two, it has been delayed because 877

:26:00. > :26:06.pages of key evidence from your department were left on a computer

:26:07. > :26:09.memory stick, part of the submission to environmental consultation. Your

:26:10. > :26:17.department's economic case is now widely regarded as a joke, now you

:26:18. > :26:23.do this. Is your department fit for purpose? Yes, and as far as what

:26:24. > :26:26.happened with the memory stick, it is an acceptable and shouldn't have

:26:27. > :26:32.happened, and therefore we have extended the time. There has been an

:26:33. > :26:42.extension in the time for people to make representation, the bill for

:26:43. > :26:55.this goes through Parliament in a different way to a normal bill. It

:26:56. > :27:00.is vital HS2 provides what we want. What I am very pleased about is when

:27:01. > :27:05.the paving bill was passed by Parliament just a few months ago,

:27:06. > :27:11.there was overwhelming support, and I kept reading there was going to be

:27:12. > :27:16.70 people voting against it, in the end 30 people voted against it and

:27:17. > :27:20.there was a good majority in the House of Commons. So can you give a

:27:21. > :27:29.guarantee that this legislation will get onto the statute books? I will

:27:30. > :27:32.do all I can. I cannot tell you the exact Parliamentary time scale. The

:27:33. > :27:40.bill will have started its progress through the House of Commons by

:27:41. > :27:47.2015, and it may well have concluded. The new chairman of HS2

:27:48. > :27:58.said he can bring the cost of the line substantially under the budget,

:27:59. > :28:03.do you agree with that? The figure is ?42 billion with a large

:28:04. > :28:07.contingency, and David Higgins, as chairman of HS2, is looking at the

:28:08. > :28:12.whole cast and seeing if there are ways in which it can be built

:28:13. > :28:17.faster. At the moment across London we are building Crossrail, ?14.

:28:18. > :28:24.billion investment. There was a report last week saying what an

:28:25. > :28:30.excellent job has been done. Crossrail started under Labour.

:28:31. > :28:38.Actually it was Cecil Parkinson in the 1990 party conference. You may

:28:39. > :28:44.get HS2 cheaper if you didn't pay people so much, why is the

:28:45. > :28:54.nonexecutive chairman of HS2 on ?600,000? And the new chief

:28:55. > :28:57.executive on ?750,000. These are very big projects and we need to

:28:58. > :29:02.attract the best people become so we are going for the best engineers in

:29:03. > :29:07.the world to engineer this project. It is a large salary, there is no

:29:08. > :29:12.question about it, but I'm rather pleased that engineers rather than

:29:13. > :29:16.bankers can be seen to get big rewards for delivering what will be

:29:17. > :29:20.very important pieces of national infrastructure. I didn't have time

:29:21. > :29:27.to ask you about your passenger duty so perhaps another time. We are

:29:28. > :29:30.about to speak to Nigel Mills and all of these MPs on your side who

:29:31. > :29:35.are rebelling against the Government, how would you handle

:29:36. > :29:41.them? We have got to listen to what our colleagues are talking about and

:29:42. > :29:46.try to respond it. Would you take them for a long walk off a short

:29:47. > :29:58.pier? I'm sure I would have many conversations with them. An

:29:59. > :30:04.immigration bill to tack the immigration into the UK. When limits

:30:05. > :30:10.on migration from Bulgaria and Romania were lifted this year there

:30:11. > :30:13.were warnings of a large influx of migrant workerses from the two new

:30:14. > :30:20.European countries. So far it's been more of a dribble than a flood. Who

:30:21. > :30:24.can forget Labour MP Keith Vaz greeting a handful of arrivals at

:30:25. > :30:28.Luton Airport. But it is early days and it is one of the reasons the

:30:29. > :30:32.Government's introduced a new Immigration Bill. The Prime Minister

:30:33. > :30:38.is facing rebellion from backbenchers who want tougher action

:30:39. > :30:47.on immigration from abroad. Nigel Mills would reimpose restrictions on

:30:48. > :30:54.how many Romanians and Bulgarians can come here. Joining me is Nigel

:30:55. > :30:59.Mills, Conservative MP behind the amendment and Labour MP Diane

:31:00. > :31:07.Abbott. Welcome. Nigel Mills, there hasn't been an influx of Romanians

:31:08. > :31:10.and Bulgarians. Why do you want to restore these, kick these

:31:11. > :31:15.transitional controls way forward to 2019? I don't think any of us were

:31:16. > :31:20.expecting a rush on January 1st Andrew. I think we were talking

:31:21. > :31:25.about a range of 250,000 to 350 000 people over five years. That's

:31:26. > :31:30.obviously a large amount of people, especially when you think net

:31:31. > :31:34.migration to the UK was well in excess of the Government's target of

:31:35. > :31:39.tens of thousands last year. The real concern is that it would be

:31:40. > :31:45.ever increasing our population, attracting lots of low-skilled,

:31:46. > :31:50.low-wage people, which keeps our people out of work and wages down.

:31:51. > :31:54.Did you accept that if you were to accept this, it would be in breach

:31:55. > :31:59.of the Treaty of Rome, the founding principle of the European Union We

:32:00. > :32:03.were trying to keep the restrictions that Bulgaria and Romania accepted

:32:04. > :32:07.for their first seven years of EU membership, on the basis that when

:32:08. > :32:11.we signed the treaty we weren't aware that we would have a huge and

:32:12. > :32:16.catastrophic recession we are still recovering from. But you would be in

:32:17. > :32:20.breach of the law, correct? The UK Parliament has a right to say we

:32:21. > :32:25.signed this deal before the terrible recession, and we need a bit longer

:32:26. > :32:32.in our national interest. It is worth noting that Bulgaria and

:32:33. > :32:37.Romania haven't met all their accession requirements. The

:32:38. > :32:42.Bulgarian requirement passed a law... So if they break the law it

:32:43. > :32:47.is alright for us to break the law? Is we should be focusing on trying

:32:48. > :32:52.to get 2. 4 million of our own in work, and 1 million people not in

:32:53. > :32:58.work... Let me bring in Diane Abbott. Will you vote for this

:32:59. > :33:03.amendment and why? It is in breach of the treaty. While I deplore MPs

:33:04. > :33:07.that try to cause trouble, these MPs have been particularly mindless

:33:08. > :33:12.because what they want to do wouldn't be legal. However, it is a

:33:13. > :33:17.Tory internal brief, if I might say so. Maybe you can cause trouble by

:33:18. > :33:24.voting for it. No, that would be going too far. Underlying it is a

:33:25. > :33:28.real antagonism for David Cameron. They have had to hold off on this

:33:29. > :33:32.bill until January. It was supposed to be debating before Christmas As

:33:33. > :33:39.we speak they've not cut a deal so it could be pretty grus om. Nigel

:33:40. > :33:44.Mills, what do you say to that I think there is a recognition that

:33:45. > :33:49.there is a problem with the amount of migration from EU countries that

:33:50. > :33:52.we need to tackle. We could try to achieve an annual cap perhaps,

:33:53. > :33:56.longer limits on when countries get free movement. I think the debate is

:33:57. > :34:00.moving in the right direction, but I think those people who are trapped

:34:01. > :34:04.out of work and desperately looking for work want something to be done

:34:05. > :34:09.now and not wait a few more years while we have more assessments

:34:10. > :34:14.Andrews. People are worried about the level of immigration. They I it

:34:15. > :34:20.is too high. That's the consensus in the country. We spoke to to

:34:21. > :34:24.migration centre in Hackney and they said they are struggling to cope

:34:25. > :34:28.with the number of people using their services. These are people

:34:29. > :34:33.with problems with the law. In the past years EU migrants put in more

:34:34. > :34:38.to the economy in taxation than they take out in benefits. When it comes

:34:39. > :34:42.to free movement, which is agitating Nige em, that horse has bolted. We

:34:43. > :34:47.signed a treaty. There is nothing people like Nigel Mills can do,

:34:48. > :34:52.unless they want to rip their party apart, God forbid. Will you go as

:34:53. > :34:56.far as to rip your party apart, Nigel Mills? Are you going to take

:34:57. > :35:02.this all the way? Would you rather see this bill go down than your

:35:03. > :35:07.amendment not be accepted? This is a very important bill. I think we all

:35:08. > :35:11.want to see measures on the statute book, so the last thing we want to

:35:12. > :35:16.see is this bill go down. We do need to set out clearly that we have real

:35:17. > :35:23.concerns about the level of EU migration and something needs to be

:35:24. > :35:29.done. Would you rather have the bill without your amendment or no bill at

:35:30. > :35:33.all? I am hoping we can have the bill with the amendment. I know

:35:34. > :35:40.that, but if you can't? Is that will depend on what the Labour Party

:35:41. > :35:44.decide to do. They are talking tougher on immigration but will they

:35:45. > :35:48.take action on it? Your party has been talking tough on immigration

:35:49. > :35:53.but I will be surprised if an Ed Miliband Labour Party would vote for

:35:54. > :35:57.egg in direct cameravention of the Treaty of Rome. It would make no

:35:58. > :36:05.sense. Nigel Mills is wishing for the impossible. If I was a Tory I

:36:06. > :36:09.would be wringing high hands. He hasn't ruled out crashing the bill.

:36:10. > :36:16.That's incredible. Where will this end, Nigel Mills? We'll end with a

:36:17. > :36:20.vote on Thursday. There's a lot of amendments people can use to show

:36:21. > :36:23.their concern about migration. We want limited and proportionate

:36:24. > :36:28.action, and that's what I am proposing. I want to see the bill on

:36:29. > :36:33.the statute book, I want the restrictions on people who shouldn't

:36:34. > :36:38.be here getting bank accounts and driving licences. I don't want to

:36:39. > :36:44.crash this bill but there's more measures we need in it. Nigel Mills

:36:45. > :36:49.thank you. You are going to be -- popping up I think on the Sunday

:36:50. > :36:55.Politics East Midlands. Diane Abbott, thank you as well.

:36:56. > :36:58.We're in for more heavy rain and high winds across the UK today. You

:36:59. > :37:01.may remember that one UKIP councillor - he's since been

:37:02. > :37:03.suspended - caused controversy last weekend by blaming the recent

:37:04. > :37:07.flooding on the legalisation of gay marriage. Why didn't I think of

:37:08. > :37:11.that? So who better than this man to bring you the unofficial forecast.

:37:12. > :37:16.I'll be bringing you the late least UKIP weather from your area.

:37:17. > :37:22.You're watching Sunday Politics. Also coming up in just over 20

:37:23. > :37:32.minutes, I'll be looking at the week ahead with our political panel.

:37:33. > :37:39.Hello, I'm David Gregory`Kumar. Welcome to the Sunday Politics in

:37:40. > :37:42.the Midlands. Today I'm joined by guests from the country and from the

:37:43. > :37:44.city. Laurence Robertson is the

:37:45. > :37:48.Conservative MP for rural Tewkesbury on the banks of the Severn and the

:37:49. > :37:52.Avon ` and at this time of year often a bit too close for comfort!

:37:53. > :37:55.Ann Lucas is the Labour leader of Coventry City Council, which after

:37:56. > :38:01.Birmingham is this region's biggest local authority. Welcome both.

:38:02. > :38:05.And it's in Coventry where we kick off this week, as the sorry and

:38:06. > :38:09.lengthy saga of what will happen to the city's football club appears to

:38:10. > :38:12.be heading for extra time. Sky Blues are playing their "home" Games in

:38:13. > :38:17.Northampton at the moment, after an acrimonious dispute over unpaid rent

:38:18. > :38:21.meant they left the Ricoh Arena. The Arena is part owned by Coventry City

:38:22. > :38:25.Council. Plans for a brand`new stadium have been drawn up by the

:38:26. > :38:35.football club but, as yet, they haven't revealed the exact location

:38:36. > :38:40.` much to the annoyance of the fans. Ann, do you need to bang some heads

:38:41. > :38:49.together or is yours one of heads that needs to be banged? We have a

:38:50. > :38:57.stadium which is as people will know not just a football ground, it is an

:38:58. > :39:12.Arena that has a foot `` a hotel, a casino, restaurants, anything you

:39:13. > :39:19.could want. Except a football team. Well, we loved having them there.

:39:20. > :39:25.You are a fan. Joining up a stadium with a football team would not seem

:39:26. > :39:28.that hired. What is the difficulty? Coventry City under its current

:39:29. > :39:35.ownership feel that they cannot lay there, unless they own Compleat

:39:36. > :39:42.unfettered freehold ownership of the Arena and all its surrounds. That is

:39:43. > :39:48.not for sale. Laurence, you are a Conservative MP. Birmingham owned

:39:49. > :39:53.the NEC. Do you think councils should own stuff like this or should

:39:54. > :39:59.they be selling it of? It is not for me to say what happens in Coventry,

:40:00. > :40:03.but I think, brig governance up and down the land, local Government and

:40:04. > :40:08.the Government itself probably own too many things. But I think if

:40:09. > :40:12.council assets are sold off, it should be for capital and then they

:40:13. > :40:20.get revenue from that. One cannot live off capital. So I think there

:40:21. > :40:25.needs to be a sensible approach to these things. In Gloucestershire

:40:26. > :40:33.they owed 80 farms, why should the council owned farms? Farms give

:40:34. > :40:41.people the opportunity to get on the farming ladder or get into the

:40:42. > :40:45.industry perhaps at an early age. But yes, there are those who say

:40:46. > :40:50.that the councils should sell those farms. There has to be a difference

:40:51. > :40:56.between capital and revenue. You cannot live off the capital, as I

:40:57. > :41:01.have said. The offing, our property portfolio is there so that we can

:41:02. > :41:06.make profit from capital. `` very often. But do you think you are

:41:07. > :41:12.going to solve this problem any time soon? It doesn't look like it is

:41:13. > :41:18.going to be sold very quickly, I am sad to say.

:41:19. > :41:21.Coming up: Unemployment is down in the Midlands, the biggest drop in

:41:22. > :41:25.the country, and the number of people in work is up. So, are we

:41:26. > :41:29.building a sustainable recovery or will there be a sting in the tail

:41:30. > :41:33.with added interest? We'll have more on that later in the programme.

:41:34. > :41:36.Is fracking on the way? The official map from the Department of Energy

:41:37. > :41:40.and Climate Change shows most of the Midlands is "under consideration"

:41:41. > :41:42.for shale gas extraction. It also shows that in parts of Shropshire

:41:43. > :41:47.and Staffordshire licences are already in place. But suggestions

:41:48. > :41:50.that there could be a boom here are wide of the mark. Two of the

:41:51. > :41:54.country's leading energy companies have told this programme they've no

:41:55. > :41:57.interest in this part of the world, and our local authorities have given

:41:58. > :41:59.a lukewarm response to the incentives being offered by the

:42:00. > :42:06.Government. Ben Godfrey's been drilling down into the issue.

:42:07. > :42:11.At Keele University in Staffordshire, they've been

:42:12. > :42:18.searching for coal`bed methane. It's a natural gas, sitting in a coal

:42:19. > :42:23.seam some 2,000 feet beneath us. What we would like to do is provide

:42:24. > :42:26.our gas and potentially our electricity from our own resources.

:42:27. > :42:30.The West Midlands is seeing more gas exploration of this kind ` this

:42:31. > :42:34.expert says it's preferred to the controversial technique of fracking,

:42:35. > :42:42.where gas is forced from shale rock. You don't actually have to produce

:42:43. > :42:44.artifactual fractures. Coal is relatively fractured anywhere. ``

:42:45. > :42:47.artificial. Fracking involves drilling into

:42:48. > :42:50.shale and widening tiny cracks, some less than a millimetre wide, which

:42:51. > :42:55.hold molecules of gas. Water, sand and chemicals are pumped in at high

:42:56. > :42:57.pressure ` to flush the gas to the surface.

:42:58. > :43:00.This Government map has caused some confusion. The blue areas show

:43:01. > :43:06.potential sites for shale gas drilling, and it covers most of our

:43:07. > :43:08.region. The yellow areas, which cover parts of Staffordshire and

:43:09. > :43:15.Shropshire, are currently licensed for gas exploration. So will

:43:16. > :43:17.fracking come here? Staffordshire and Shropshire seem

:43:18. > :43:24.primed for fracking. It's in fireball? Probably not, because the

:43:25. > :43:31.shale here has not been the temperature required to make gas. ``

:43:32. > :43:32.is it viable. It is unlikely to have prospective commercial quantities of

:43:33. > :43:35.gas. Dart Energy wants to start fracking

:43:36. > :43:39.in the UK. The multinational operates a third of the 33 licensed

:43:40. > :43:48.sites looking for oil and gas in the West Midlands. But their boss says

:43:49. > :43:55.they won't be fracking here. This is a less attractive area from a

:43:56. > :43:59.technical ex``` perspective. From our work so far we think it is

:44:00. > :44:03.unlikely to be a significant player in unconventional gas.

:44:04. > :44:07.Another energy firm, Cuadrilla ` which drew protests at its Lichfield

:44:08. > :44:10.HQ last year ` is also ruling it out here.

:44:11. > :44:13.Environmental campaigners aren't convinced by those denials ` and

:44:14. > :44:24.claim fracking poses a huge health risk. Once they have dogged the

:44:25. > :44:35.holes, they have already put harmful chemicals into the earth. `` God. ``

:44:36. > :44:38.out. `` dug. Councils in the West Midlands tell

:44:39. > :44:41.us they've had no applications for fracking. But Staffordshire County

:44:42. > :44:44.Council is open to the idea if the benefits are right. We have to look

:44:45. > :44:48.closely at what the Government is offering. That is balanced against

:44:49. > :44:53.the need for cheaper energy. There needs to be real advantages to the

:44:54. > :44:55.community. There's certainly no political

:44:56. > :44:59.consensus ` fracking hasn't been ruled out in Staffordshire, but take

:45:00. > :45:02.a step over the border and it's a different story. Conservative`led

:45:03. > :45:03.Cheshire East Council, which incidentally includes George

:45:04. > :45:08.Osborne's constituency, says fracking is not for them.

:45:09. > :45:12.The Prime Minister believes onshore gas has a big future. As for

:45:13. > :45:17.fracking? Well, you don't need to dig too deep to see that the West

:45:18. > :45:20.Midlands isn't really on the map. Well, joining us now is Professor

:45:21. > :45:22.Alister Scott of Birmingham City University, who's Professor of

:45:23. > :45:26.Spatial Planning and Governance, Birmingham City University. Which

:45:27. > :45:36.I'm guessing means environmental planning expert. You haven't got a

:45:37. > :45:47.problem with fracking, more the way the Government is going about it.

:45:48. > :45:51.What is the difficulty you see? The Government are very positive towards

:45:52. > :45:54.fracking to the extent that they are saying that anybody who opposes it

:45:55. > :46:02.is somehow a rational. And even we have heard Trotskyist. We have heard

:46:03. > :46:06.that fracking is the best thing since sliced bread, mooted by the

:46:07. > :46:08.Government on one hand, and then on the other hand we have environmental

:46:09. > :46:14.campaigners claiming environmental catastrophe. So for people like me

:46:15. > :46:19.it is about thinking about what evidence is in the public domain

:46:20. > :46:26.that allows people to make an informed decision about the impacts

:46:27. > :46:31.of fracking for them. But there is nothing wrong with Government being

:46:32. > :46:36.a cheerleader for technology. Well, we don't actually have at the moment

:46:37. > :46:41.a coherent energy policy. So fracking is being evolved within

:46:42. > :46:46.this gap in policy, and somehow it might appear as a sort of

:46:47. > :46:52.opportunist cash and grab. It doesn't fit neatly with any sort of

:46:53. > :46:55.long`term commitment or strategy. We have had those blue map, which could

:46:56. > :47:03.be explored. The thing that will alarm people? `` do you think. The

:47:04. > :47:10.process you get from an initial application to explore to a final

:47:11. > :47:17.approved let's go fracking, is a context procedure that involves both

:47:18. > :47:24.planning applications `` complex. And also licenses and environmental

:47:25. > :47:29.permits. That goes through different stages, so from initial exploration

:47:30. > :47:37.to assessment and then the final, yes, there are resources. It sounds

:47:38. > :47:43.like there is protection there. What are you worried about? The

:47:44. > :47:48.protection through `` is through a planning process which looks at a

:47:49. > :47:51.particular application. The problem is that the planning system is very

:47:52. > :47:56.good at looking at the impact in a particular area for that

:47:57. > :47:59.application, but bad at looking at the strategic case. If we have the

:48:00. > :48:04.Government saying the case for fracking is unassailable, and David

:48:05. > :48:08.Cameron is saying it is going to happen, that creates a political

:48:09. > :48:13.climate where those strategic issues are already being decided. I am

:48:14. > :48:19.saying that people expressing concern against fracking have no

:48:20. > :48:23.forum or place to enter those discussions in a proper debate,

:48:24. > :48:29.because the planning application process does not include those as

:48:30. > :48:35.valid considerations. Laurence, Ann, would you welcome

:48:36. > :48:42.fracking in Tewkesbury and Coventry? My instinct is no. Because as a

:48:43. > :48:47.council leader I have a duty of care for the people of Coventry, and an

:48:48. > :48:52.expert who wants to do it will tell me it is great, and somebody who is

:48:53. > :48:55.not sure will tell me it isn't. I am no expert, and I am not prepared to

:48:56. > :49:01.take that risk on the half of my people. And Tewkesbury? They should

:49:02. > :49:10.not be any risks taken, everything done should be safe. `` there should

:49:11. > :49:13.not be. We have a company looking to build a nuclear power plant not far

:49:14. > :49:19.outside my constituency. We have to address the fact that the production

:49:20. > :49:24.of electricity from nuclear is gradually reducing, and we know net

:49:25. > :49:29.importers of gas. There may be a squeeze on energy production in the

:49:30. > :49:34.future. We are not going back to living in caves with candles, so we

:49:35. > :49:44.have to produce electricity. You were an energy spokesman. Do you

:49:45. > :49:48.think we handled the debate well? I think the last Government should

:49:49. > :49:52.have brought nuclear replacement on earlier than they did. I think this

:49:53. > :49:58.issue should have been looked at, but we have to move from here. If

:49:59. > :50:02.the Government over selling it? It is not necessarily going to be the

:50:03. > :50:09.solution to all the problems. I am not pretending that it is. The one

:50:10. > :50:14.concern I have got is that David Cameron lobbied effectively against

:50:15. > :50:19.the EU, which was trying to create extra regulation or a directive to

:50:20. > :50:24.take on board the particular issues that are raised by fracking, and in

:50:25. > :50:29.the research that was done as part of the commission's work here, they

:50:30. > :50:34.identified that the kind of regulatory framework had gaps that

:50:35. > :50:38.currently are not provided for, so strategic planning, issues to do

:50:39. > :50:42.with methane and the risk assessment aspects, and therefore it begs the

:50:43. > :50:46.question why is the Government trying to rush this through and

:50:47. > :50:53.actually wipe away regulations, with the idea that Britain's open for

:50:54. > :50:56.business? I don't think it is being rushed through, there has to be

:50:57. > :51:01.serious considerations for the environment. I don't think we need

:51:02. > :51:06.the you to tell us that, we have been carrying out `` we have had a

:51:07. > :51:10.nuclear industry for a long time, one of the first plants in the world

:51:11. > :51:17.was built here. So I don't think we need EU to tell `` Europe to tell us

:51:18. > :51:22.here. You have called this debate a pantomime. Was that about better? It

:51:23. > :51:28.makes for better discussion about the issues. `` was that a bit

:51:29. > :51:31.better. The West Midlands may not be suitable for fracking, but the West

:51:32. > :51:41.Midlands is affected upstream from reverse.

:51:42. > :51:45.Thank you for coming in. Unemployment in the West Midlands is

:51:46. > :51:48.down again, big time. In the last quarter the drop here was bigger

:51:49. > :51:53.than anywhere else. At the same time more people are in jobs ` so what's

:51:54. > :51:56.not to like? As always, the devil's in the detail. The West Midlands has

:51:57. > :52:00.pockets of unemployment that are higher than any other part of the

:52:01. > :52:03.country, and a new survey from the TUC claims it's actually harder to

:52:04. > :52:06.find a job now in this region than it was four years ago. Here's our

:52:07. > :52:07.Business correspondent Peter Plisner.

:52:08. > :52:10.Look beyond Birmingham's ultra`modern buildings, and it's a

:52:11. > :52:13.place where there's a serious unemployment problem. At 16%, the

:52:14. > :52:25.second city jobless total is more than double the UK average. There is

:52:26. > :52:29.not much around here for our age, because you need the experience for

:52:30. > :52:31.it and it is good to get the experience in college.

:52:32. > :52:34.Overall the latest figures show welcome news for the region.

:52:35. > :52:38.Unemployment stands at 222,000 ` that's a drop of 32,000 on the last

:52:39. > :52:42.quarter. But at 8.1% the West Midlands jobless total is still

:52:43. > :52:45.above the national average. A report from the TUC released on Monday

:52:46. > :52:54.suggests it's actually getting harder, not easier, to find a job in

:52:55. > :52:59.the region. When the Chancellor talks about a UK recovery, regions

:53:00. > :53:07.such as the West Midlands are massively disadvantaged. Employment

:53:08. > :53:09.chances have been reduced, and the rebalancing of the economy the

:53:10. > :53:13.Chancellor promised has not taking `` taken place.

:53:14. > :53:16.The picture isn't a simple one, but generally the economic numbers look

:53:17. > :53:18.good. The problem for the Government, is will positive numbers

:53:19. > :53:22.on the page translate into a feel`good factor at the polls?

:53:23. > :53:30.It's what I ask all MPs these days ` forget the numbers, are your

:53:31. > :53:34.constituents feeling this recovery? They do feel that things are slowly

:53:35. > :53:41.getting better. We came from a very difficult situation that did hit a

:53:42. > :53:47.lot of people. I think the Prime Minister has made it clear we are

:53:48. > :53:50.not clear yet, but I think dude `` things are improving. We have on

:53:51. > :53:55.deployment figures falling and employment figures increasing and

:53:56. > :54:06.very much so in the private sector. `` employment figures. So what about

:54:07. > :54:09.the Midlands being left behind? There has always been a special

:54:10. > :54:15.challenge for the inner cities, and that is true today as it was 30

:54:16. > :54:19.years ago. But that doesn't mean we should not try to improve the

:54:20. > :54:24.economic situation for people throughout the country. Yes, there

:54:25. > :54:27.are pockets of the country where it is more difficult to find jobs,

:54:28. > :54:31.where it is more difficult to make your way through. I fully denies

:54:32. > :54:39.that. But over all I think the country `` full Iraqi lives that. I

:54:40. > :54:43.think the country is `` I fully recognise that. We came from a very

:54:44. > :54:49.difficult situation. In Coventry do you recognise that up the

:54:50. > :54:53.assessment? If I were to knock doors in my ward until people they are a

:54:54. > :54:58.lot but of land they were last year, I would have to run pretty

:54:59. > :55:05.quickly. `` better off than they were. Entry has unemployment of 9%,

:55:06. > :55:13.so we are above average, `` Coventry, and we are working really

:55:14. > :55:21.hard locally with our job shop to try and place people. But we are

:55:22. > :55:28.working from a base, don't forget, way back in the 80s I watched

:55:29. > :55:33.Coventry lose something like 60,000 jobs in the space of six months. We

:55:34. > :55:38.get hit every time there is a downturn. It is always the inner

:55:39. > :55:44.cities, the people who cannot afford it. The Government's been making a

:55:45. > :55:56.big play of these figures. Perhaps in a few months though, people might

:55:57. > :56:01.start to feel it. If tomorrow, I honestly believe these were the

:56:02. > :56:06.right policies `` I believe these were the right policies, I would be

:56:07. > :56:11.saying, hands up, we got it wrong. Yes, there are new job

:56:12. > :56:14.opportunities, zero hours jobs, temporary jobs. There are people

:56:15. > :56:19.working full`time who cannot make ends meet. I am a fourth generation

:56:20. > :56:27.of women who have been able to buy their own property. My daughter has

:56:28. > :56:37.bought those. Sadly I wonder if my ground `` granddaughter will be able

:56:38. > :56:41.to buy those. And speaking of jobs, it's time to

:56:42. > :56:44.meet the woman taking over this one next week. BBC Midlands Today's

:56:45. > :56:47.Elizabeth Glinka has our regular round`up of the political week in

:56:48. > :56:50.the Midlands in 60 seconds. With the economy going up a gear,

:56:51. > :56:54.the Treasury's Chief Secretary Danny Alexander was in Solihull to have a

:56:55. > :56:57.look around the home of the booming car makers Jaguar Land Rover.

:56:58. > :57:00.The Labour MP for Perry Barr Khalid Mahmood is recovering after a kidney

:57:01. > :57:03.transplant operation at Birmingham's Queen Elizabeth Hospital.

:57:04. > :57:07.MPs have voted to release secret papers in the case of the Shrewsbury

:57:08. > :57:10.24. The group ` including actor Ricky Tomlinson ` were convicted for

:57:11. > :57:21.picket line disturbances in a builder's strike in the early '70s.

:57:22. > :57:26.The Stasi published their file after the Berlin Wall came down. I think

:57:27. > :57:29.we can. `` their files. West Brom's Nicolas Anelka faces a

:57:30. > :57:32.ban, and shirt sponsor Zoopla is ending its deal with the club over

:57:33. > :57:34.the player's goal celebration ` which is regarded by some

:57:35. > :57:37.anti`Semitic. And a Conservative Party report into

:57:38. > :57:40.a Nazi`themed stag do organised by Cannock MP Aidan Burley has

:57:41. > :57:48.described his conduct as "offensive and unacceptable."

:57:49. > :58:05.And Elizabeth Glinka will be here in this very seat for next Sunday's

:58:06. > :58:10.programme. Some said Aidan Power `` Aidan Burley's stag party was just a

:58:11. > :58:18.bit of fun. I used to say to my children, can you see anybody

:58:19. > :58:28.laughing? I don't think it was fun. Ian Austin said Aidan's version was

:58:29. > :58:31.misleading. I will leave it between Aidan and the Chief Whip to discuss

:58:32. > :58:37.it. Nobody should do anything in public life that is likely to offend

:58:38. > :58:45.anybody else. The details are to have to leave to those two. Nicolas

:58:46. > :58:58.Anelka, was that just stupidity as well? I don't know anything about

:58:59. > :59:01.him except, and it is very true, if you are in the public eye and it

:59:02. > :59:07.doesn't matter what job you do, you have to think very carefully about

:59:08. > :59:15.your actions and reactions. Because it has caused's if you are Joe

:59:16. > :59:20.average on the street, perhaps nobody will take any notice. This

:59:21. > :59:25.has cost West Bromwich ?3 million. That is a huge amount. You were

:59:26. > :59:32.involved in Northern Ireland. Symbols matter, don't they? Yes, and

:59:33. > :59:36.it won't think is to have respect `` the important thing is to have

:59:37. > :59:38.respect for the other side's viewpoints and history, whilst

:59:39. > :59:47.retaining the right to celebrate your own tradition. In Northern

:59:48. > :59:50.Ireland there is the duty to care for each other's views, but also

:59:51. > :59:56.respect your own tradition and celebrated.

:59:57. > :00:00.Many thanks to Laurence and to Ann for joining us today. Next Friday

:00:01. > :00:03.BBC Radio Stoke will be looking at what HS2 will mean for Staffordshire

:00:04. > :00:06.as the public consultation over the controversial rail project comes to

:00:07. > :00:10.an end. And on BBC WM tomorrow morning, Pete Morgan at Breakfast

:00:11. > :00:12.will be looking into a new report that says Birmingham's got more

:00:13. > :00:15.people claiming Jobseeker's Allowance than any other big UK city

:00:16. > :00:19.` something we touched on earlier. But for us for this week it's the

:00:20. > :00:21.end of the line, I'm afraid, and that can mean only one thing ` it's

:00:22. > :00:41.time to rejoin Andrew Neil. constituency, very pleased. Andrew,

:00:42. > :00:44.back to you. UKIP leader Nigel Farage is never

:00:45. > :00:48.far away from controversy, but this week he's been outdoing himself He

:00:49. > :00:51.was hit over the head with a placard by a protester in Kent, provoked

:00:52. > :00:54.outrage by saying women with children are worth less to city

:00:55. > :01:01.firms, and said the ban on owning handguns was 'crackers'. He also

:01:02. > :01:05.seemed less than sure of his party's own policies when I interviewed him

:01:06. > :01:08.on the Daily Politics. And the story that got everyone talking was the

:01:09. > :01:13.suggestion by a UKIP councillor that flooding is linked to gay marriage.

:01:14. > :01:20.We'll talk about all of that in a moment, but first, over to Nigel

:01:21. > :01:24.with the weather. Weather for all areas of the British Isles but

:01:25. > :01:30.definitely not "Bongo Bongo Land." You may have heard about a storm in

:01:31. > :01:36.a tea cup developed when you kip councillor in Oxfordshire blamed the

:01:37. > :01:41.floods on the gay marriage Bill The old party is focusing on the view of

:01:42. > :01:48.UKIP members like him, even though he had said a sell yuj of things

:01:49. > :01:56.before when a Tory councillor. How quickly things change depending on

:01:57. > :02:03.when the blouse. There are occasional barmy views by people of

:02:04. > :02:07.all persuasions. In Whitby a Labour councillor claimed of fathered a

:02:08. > :02:18.child with an extra terrorist ral, and said his real mother was a

:02:19. > :02:24.foot green alien. And in Wales a councillor

:02:25. > :02:32.thinking about heading off for the slopes, there were flurries of

:02:33. > :02:37.embarrassment for the Tories after Aidan Burly organised a Nazi skiing

:02:38. > :02:44.party in a resort. Anyone heading to Brussels, perhaps

:02:45. > :02:48.on the gravy train, watch out for hot air.

:02:49. > :02:56.In Britain temperatures are rising ahead of the European elections in

:02:57. > :03:00.May. It could get stormy, so advise light aircraft. Watch out for

:03:01. > :03:05.outbreaks of common sense, and no chance of cyclonic fruit cakes. Back

:03:06. > :03:10.to you, Andrew, with the rest of the Sunday Politics.

:03:11. > :03:15.Nick, if it was any other party that had bon through the past week it

:03:16. > :03:20.would be in meltdown. And maybe it is harming UKIP and maybe it isn't.

:03:21. > :03:26.What do you think? That just shows, that great weather forecast, Prince

:03:27. > :03:31.Charles now has a rival to be an excellent weather forecaster, as

:03:32. > :03:36.does the Duchess of Cornwall. It shows why Nigel Farage is the fefr

:03:37. > :03:40.candidate to the European elections. Our invitation to the British people

:03:41. > :03:44.to kick the establishment. The establishment have spent five years

:03:45. > :03:49.that the European Parliament is a waste of time, so who are you going

:03:50. > :03:55.to vote for? A Nigel Farage type of person. What was important about

:03:56. > :03:59.your eadviceration of Nigel Farage on Daily Politics is that when it

:04:00. > :04:02.came to the substance, they flounder. But the point about that

:04:03. > :04:08.party is they may have the thinnest set of policies, but people know

:04:09. > :04:15.what they stand for more than any other parties - get out of Europe, a

:04:16. > :04:20.grammar school in every town. If any other leading politician called for

:04:21. > :04:24.an end to the ban on handguns, at a time when we've seen these appalling

:04:25. > :04:28.gun deaths in the United States now almost one every week in some

:04:29. > :04:38.terrible siege in a school. It would be a crisis. It seems to wash off

:04:39. > :04:43.him. He's got congenital foot-and-mouthitis. Straight into

:04:44. > :04:49.another wild nothing to do with why people might vote UKIP. I don't

:04:50. > :04:54.think people are desperate to have handgun licences back in this

:04:55. > :04:59.country. It is such an unusual phenomenon, UKIP, that if this was a

:05:00. > :05:05.Tory or a Labour or a Lib Dem saying it, we've seen the damage done to

:05:06. > :05:09.the Lib Dems on a much more serious manner, we would say this is

:05:10. > :05:14.terminal. But maybe it adds to this image that we are not like the other

:05:15. > :05:20.parties. I think that is it. We keep waiting for these scandals and

:05:21. > :05:26.embarrassments to do damage to UKIP's poll ratings, but it's not

:05:27. > :05:30.working. It is ultimately because if you are an antiestablishment party,

:05:31. > :05:35.if you are an anti-system party the rules of the game which apply to the

:05:36. > :05:41.establishment parties don't apply to you. And the more ramshackle and

:05:42. > :05:47.embarrassing you are, the more authentic you seem. It what be take

:05:48. > :05:53.something for them not to finish second in May. Do they spend the

:05:54. > :05:56.following 12 months sinking in the poll snoos And George Osborne's

:05:57. > :05:59.strategy is fame everything as Labour versus the Conservatives The

:06:00. > :06:06.electorate will have their fun in May. Maybe the Tories will be beat

:06:07. > :06:11.into third place but in thejection is that -- but in the general

:06:12. > :06:19.election it is Labour versus the Tories. The Conservative Party will

:06:20. > :06:24.run around, 46 letters to Graham Brady, a leadership contest. That

:06:25. > :06:27.sort of scenario. UKIP, if it rules well in the European elections,

:06:28. > :06:34.could cause big trouble for Mr Cameron and Mr Clegg couldn't it?

:06:35. > :06:39.The big point about this, David Cameron said this is not a political

:06:40. > :06:44.party but a pressure group. This is the way to look at UKIP, and the way

:06:45. > :06:51.it is used by people in the right of the party, who say we have to do

:06:52. > :06:58.this. I like the policy of painting the trains in their old liveries. It

:06:59. > :07:08.would be like my old train set. I like the bigger passports.

:07:09. > :07:16.Pre-GNER... And London and Midland. I used to be a train spotter.

:07:17. > :07:22.Gordon Birtwhistle has been on the phone. Good to know you are watching

:07:23. > :07:27.but pity you are not here. He wanted to clarify he had constituency

:07:28. > :07:31.commitments to prevent him coming on the show to talk about becoming

:07:32. > :07:34.leader of the party, but he didn't dispute anything we said on the

:07:35. > :07:37.show. Yesterday, Ed Balls said that

:07:38. > :07:40.housing investment will be a central priority for the next Labour

:07:41. > :07:44.Government. It's a big issue, as the lack of new homes pushes up the the

:07:45. > :07:47.price of owning or renting. Well, tomorrow the Tories will announce

:07:48. > :07:53.what they say is the most ambitious programme of affordable

:07:54. > :07:56.housebuilding for 20 years. The Government sees housing as a really

:07:57. > :08:04.important part of the economy. That's why we are announcing a 23

:08:05. > :08:08.billion package for 165,000 new affordable homes. So individual

:08:09. > :08:13.builders, councils, housing associations can bid for that money.

:08:14. > :08:17.Phase one, which we are halfway through at the moment, we've built

:08:18. > :08:25.170,000 houses. 99,000 already coming out of the ground, so we ve

:08:26. > :08:30.made real progress on that. So, 165,000 new, affordable homes. It is

:08:31. > :08:34.a lot. Let me add three more words. Over three years. It is not such a

:08:35. > :08:38.lot. It is not, and Labour's commitment is 200,000 homes a year

:08:39. > :08:44.and even that isn't enough. The problem here is that the vest

:08:45. > :08:47.interest is with people who already have homes. They have a vote in the

:08:48. > :08:52.system through the planning regulations. In London there is a

:08:53. > :08:57.gap in the hedge through Richmond Park through which you should be

:08:58. > :09:01.able to see St Paul's Cathedral That's why you cannot build homes

:09:02. > :09:08.where you want them. I don't think we want to build homes over Richmond

:09:09. > :09:13.Park. He wasn't saying that. That's dies an Tyne -- that's Byzantine.

:09:14. > :09:18.You've got to deal with supply, which is why Labour is talking about

:09:19. > :09:24.200,000 a year, and what George Osborne has done with supply is

:09:25. > :09:28.helping with demand. We know the Help to Buy Scheme is pretty

:09:29. > :09:35.dangerous, and Mark Carney is keen to put the break on that. If you are

:09:36. > :09:39.to deal with supply, you have to do radical things. Chris Huhne talked

:09:40. > :09:43.about on brownfield sites you can tax people who are holding the land

:09:44. > :09:48.as if the development has taken place. Then if you are really going

:09:49. > :09:52.to deal with it you have to talk about the greenfield sites, and you

:09:53. > :09:56.have to deal with the garden cities argument, which is too much for the

:09:57. > :09:59.Tories. All the parties seem to agree building new houses is a

:10:00. > :10:04.political winner. I hope that they are right. I'm not sure they are.

:10:05. > :10:09.The housing market is the example of what economists call the insider

:10:10. > :10:14.in-outsider problem. People who are already homeowners have no rational

:10:15. > :10:19.incentive to vote for more housing stock. Even if you leave aside the

:10:20. > :10:23.Conservative arable objections, if you are a homeowner there is an

:10:24. > :10:27.interest to stick with the planning promise that we have. So then we are

:10:28. > :10:31.stuck between a rock and a hard place. Not only are we growing at

:10:32. > :10:37.the moment but our population is growing. I've seen projects that in

:10:38. > :10:41.quite quickly we will overtake Germany and become the largest

:10:42. > :10:46.populated country in Europe. If that's the case we've got to build

:10:47. > :10:50.homes. We have. If you look at Tower Hamlets in London, the population is

:10:51. > :10:55.r ging higher than the number of dwelling. Classically the theory's

:10:56. > :11:01.been young people are most affected by this and they don't vote much.

:11:02. > :11:08.But when their parents have young Johnny stuck at home at 37, that's

:11:09. > :11:11.an electoral issue. That's why the garden cities project is

:11:12. > :11:16.interesting, because they finance themselves. You zone it for

:11:17. > :11:22.development, it is worth ?2 million an acre and then you can build on

:11:23. > :11:27.it. But who is going to want the greenfield sites gone. And how

:11:28. > :11:32.quickly can we build garden cities today? Some were started before the

:11:33. > :11:37.Town and Country Planning Act. I've read stats about the way Chinese and

:11:38. > :11:41.Japanese are building houses and they were slower than that. Here's a

:11:42. > :11:46.thought, sticking on the housing theme. Ed Miliband came up with the

:11:47. > :11:51.energy freeze, a populist interventionist move. Then the use

:11:52. > :11:55.it or lose it to land developers. Then breaking up the banks. Now the

:11:56. > :12:01.50p tax rate. How much would you put on Labour coming up for rent

:12:02. > :12:06.controls? That's already a big split. They are split already on it.

:12:07. > :12:10.They have. In London it is a popular policy. It might not play well in

:12:11. > :12:14.the rest of the country. I would say 50-50 on that. I think Labour

:12:15. > :12:18.supporting rent controls like the Tories having a go at welfare. The

:12:19. > :12:22.policy may be individually popular but it sends an impression about the

:12:23. > :12:26.party which might be less attract active. It confirms underlying

:12:27. > :12:30.suspicions that vote these guys into power and suddenly they are

:12:31. > :12:35.tampering with the private economy. The memories of the '70s when

:12:36. > :12:38.Governments tried and failed to do that. It is riskier than a

:12:39. > :12:43.superficial reading of the polls would suggest. One to watch? I think

:12:44. > :12:49.they are looking at it. That was the key message of the Ed Balls speech

:12:50. > :12:54.on housing, is looking at supply and how you get to that 200,000 figure a

:12:55. > :12:58.year, which is substantially more than what Kris Hopkins is talking

:12:59. > :13:03.about. What we didn't get to talk about, remember we had Michael

:13:04. > :13:06.Wilshaw on, the Chief Inspector of Schools. We all consumed was Mr

:13:07. > :13:10.Gove's man, the Education Secretary's man. Now according to

:13:11. > :13:14.the Sunday Times he is spitting blood about the way Mr Gove and his

:13:15. > :13:18.office are speaking about him behind the scenes. We've checked the quotes

:13:19. > :13:23.and he stands by them, so I think we'll have to have the head of

:13:24. > :13:26.Ofsted back on the programme. If you are watching, we're here. All that

:13:27. > :13:30.to the Lib Dems who didn't come on today.

:13:31. > :13:34.That's all for today. Thanks to all my guests. The Daily Politics is

:13:35. > :13:37.back on Monday at midday on BBC Two, and I'll be here again next week.

:13:38. > :14:15.Remember, if it's Sunday, it's the Sunday Politics.

:14:16. > :14:23.Britain, with 120,000 soldiers is now at war with Germany

:14:24. > :14:33.This would be the first truly modern war.

:14:34. > :14:37.and resolve of entire populations against each other.