02/04/2017

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:00:37. > :00:40.It's Sunday Morning and this is the Sunday Politics.

:00:41. > :00:43.The Government has insisted that Gibraltar will not be bargained

:00:44. > :00:47.But the territory's chief minister says the EU's proposal

:00:48. > :00:53.After a momentous week, Britain's journey out

:00:54. > :00:56.Can the Prime Minister satisfy her critics at home

:00:57. > :01:02.We speak to the former Conservative leader, Michael Howard.

:01:03. > :01:05.And we have the lowdown on next month's local elections -

:01:06. > :01:08.what exactly is up for grabs, who's going up and who's going down?

:01:09. > :01:10.And, in the Midlands, it's the Digby and Rigby show!

:01:11. > :01:13.Sir Peter Jones says Brexit is a disaster.

:01:14. > :01:18.Join him and him and me in half an hour.

:01:19. > :01:21.changing their minds. MPs from opposing sides give the view from

:01:22. > :01:28.there constituencies. And with me, as always,

:01:29. > :01:31.the best and the brightest political panel in the business -

:01:32. > :01:33.Steve Richards, Isabel Oakeshott and Tom Newton Dunn who'll be

:01:34. > :01:39.tweeting throughout the programme. For the people of Gibraltar, Clause

:01:40. > :01:41.22 of the EU's draft negotiating guidelines came as something

:01:42. > :01:44.of a shock. The guidelines propose

:01:45. > :01:49.that the Government in Spain be given a veto over any future trade

:01:50. > :01:52.deal as it applies to The UK Government has reacted

:01:53. > :01:57.strongly, saying Gibraltar will not be bargained away

:01:58. > :02:00.in the Brexit talks. Here's the Defence Secretary,

:02:01. > :02:06.Michael Fallon, speaking We are going to look

:02:07. > :02:12.after Gibraltar. Gibraltar's going to be protected

:02:13. > :02:16.all the way, all the way, because the sovereignty of Gibraltar

:02:17. > :02:18.cannot be changed without the agreement of the people

:02:19. > :02:21.of Gibraltar and they have made it very clear they do not

:02:22. > :02:24.want to live under Spanish rule and it is interesting, I think,

:02:25. > :02:27.in the draft guidelines from the EU that Spain is not saying

:02:28. > :02:39.that the whole thing is subject Michael Fallon earlier. Steve, is

:02:40. > :02:43.this a Spanish power grab or much ado about nothing? It could be both.

:02:44. > :02:48.Clearly what is happening about this negotiation and will happen again

:02:49. > :02:53.and again is that at different points individual countries can

:02:54. > :03:00.start playing bargaining cards. They will say, if you want a deal, you

:03:01. > :03:04.have to deliver this, UK. Spain is doing it early. It might turn out to

:03:05. > :03:11.be nothing at all. It is an early example of how to delete recruit

:03:12. > :03:19.after Article 50 is triggered, the dynamic -- how after Article 50 is

:03:20. > :03:23.triggered, the dynamic changes. At certain points, any country can veto

:03:24. > :03:28.it. It gives them much more power than we have clocked so far. Donald

:03:29. > :03:34.Tusk, the head of the European Council, he went out of his way to

:03:35. > :03:36.say Britain mustn't deal by laterally, with individual

:03:37. > :03:43.countries, it has to deal with the EU as a block. Was it mischiefmaking

:03:44. > :03:51.to add this bit in about Spain? Those two things do not tally. I

:03:52. > :03:58.think on our part, when I say we, I mean the Foreign Office and Number

:03:59. > :04:01.10, we dropped the ball. By excluding Gibraltar from the letter

:04:02. > :04:06.of Article 50, they gave an opportunity to the Spanish to steal

:04:07. > :04:11.the narrative. Why this is important, presentation, things

:04:12. > :04:16.looked like they were going quite well for Theresa May when she handed

:04:17. > :04:20.over the letter, for a few hours, and suddenly, you have this

:04:21. > :04:26.incredible symbolism of Gibraltar. For Brexiteers, the idea that there

:04:27. > :04:31.could be some kind of diminishment or failure in relation to Gibraltar,

:04:32. > :04:35.it would be a very symbolic illustration of things not going

:04:36. > :04:39.entirely to plan. Forget the detail, it does not look great. Gibraltar

:04:40. > :04:44.got mentions in the white paper. They did not get a mention in the

:04:45. > :04:50.Article 50 notification. Do you think the British Government did not

:04:51. > :04:53.see this coming? To be honest, I do not think it would make a bit of

:04:54. > :04:58.difference. Theresa May could have an entire chapter in her letter to

:04:59. > :05:03.Donald Tusk and the Spanish and the EU would have still tried this on.

:05:04. > :05:09.For me, it was as much a point of symbolism than it was for any power

:05:10. > :05:14.grab. It was a good point to make. You need to know, Britain, you are

:05:15. > :05:18.not in our club, we will not have your interests at heart. Officials

:05:19. > :05:24.after the press conference, they went on to talk about it saying it

:05:25. > :05:31.is a territorial dispute. It is not! Gibraltar is British. It is very

:05:32. > :05:35.much a shot across the bow is. Whether it comes to pass, it is

:05:36. > :05:39.still yet to be seen. I feel we will be chasing hares like this for the

:05:40. > :05:46.next few years. There will be many other examples. They are greatly

:05:47. > :05:53.empowered by the whole process. Britain has not really got... It has

:05:54. > :05:56.got to wait and hear what their interpretation of Brexit is. They

:05:57. > :06:00.will negotiate, we will negotiate accordingly. I have some sympathy

:06:01. > :06:06.about the letter, the Article 50 letter. They agonised over it, so

:06:07. > :06:09.much to get right in terms of balance and tone. It would have been

:06:10. > :06:21.absurd to start mentioning Skegness and everything else. Why not!

:06:22. > :06:26.Skegness, what did they do? It is a real example of how the dynamic now

:06:27. > :06:30.changes. The Spanish royals are going to come here in a couple of

:06:31. > :06:35.months, that could be interesting. It will be good feelings breaking

:06:36. > :06:44.up, I am sure. -- breaking out. So, after a historic week,

:06:45. > :06:46.the UK is now very much But will it be a smooth

:06:47. > :06:50.journey to the exit door? Or can we expect

:06:51. > :06:52.a bit of turbulence? Are you taking back

:06:53. > :06:55.control, Prime Minister? Big days in politics usually

:06:56. > :06:57.involve people shouting and the Prime Minister getting

:06:58. > :06:59.in a car. It is only a few hundred metres

:07:00. > :07:01.from Downing Street to Parliament. But the short journey is the start

:07:02. > :07:04.of a much longer one and we do not know exactly

:07:05. > :07:09.where we will all end up. This is a historic moment

:07:10. > :07:12.from which there can Moments earlier, this Dear John,

:07:13. > :07:21.sorry, Dear Don letter, was delivered by Britain's

:07:22. > :07:23.ambassador in Brussels to the EU He seemed genuinely upset

:07:24. > :07:26.to have been jilted. Back in Westminster,

:07:27. > :07:32.hacks from around the world were trying to work out what it

:07:33. > :07:35.all meant for the So, here it is, a copy

:07:36. > :07:41.of the six-page letter The letter reaffirms the PM's

:07:42. > :07:48.proposal to have talks on the exit deal and a future trade deal

:07:49. > :07:51.at the same time. It also mentioned the word

:07:52. > :07:53."security" 11 times and stated a failure to reach agreement

:07:54. > :07:55.would mean cooperation in the fight against crime

:07:56. > :07:59.and terrorism would be weakened. Later, our very own Andrew got

:08:00. > :08:03.to ask her what would happen if Britain left the European

:08:04. > :08:09.policing agency, Europol. We would not be able to access

:08:10. > :08:12.information in the same way as we would as a member,

:08:13. > :08:16.so it is important, I think, we are able to negotiate

:08:17. > :08:17.a continuing relationship that enables us to work together

:08:18. > :08:20.in the way that we have. That night, the

:08:21. > :08:22.Brexiteers were happy. We did not have a Mad

:08:23. > :08:29.Hatter, but now we do. Down the street, even the Remainers,

:08:30. > :08:32.having a Mad Hatters' tea party, I am not sure that is

:08:33. > :08:41.actually Boris, though. The next morning, the papers

:08:42. > :08:56.suggested Theresa May would use security as a bargaining tool

:08:57. > :08:56.and threaten to withdraw the UK's cooperation in this area

:08:57. > :08:57.if no deal was struck. Downing Street denied it,

:08:58. > :08:57.as did the Brexit Secretary. We can both cope, but we

:08:58. > :09:00.will both be worse off. That seems to be a statement

:09:01. > :09:03.of fact, it is not a threat, David Davis had other

:09:04. > :09:06.business that morning, introducing the Great Repeal Bill,

:09:07. > :09:08.outling his plans to transfer all EU law into British

:09:09. > :09:10.law to change later, It is not without its critics

:09:11. > :09:16.but the Brexit Secretary said, among other benefits,

:09:17. > :09:18.it would make trade talks easier As we exit the EU and seek

:09:19. > :09:25.a new deep and special partnership with the European Union,

:09:26. > :09:27.we are doing so from a position where we have the same

:09:28. > :09:29.standards and rules. It will also ensure we deliver

:09:30. > :09:35.on our promise to end the supremacy of European Union law

:09:36. > :09:37.in the UK as we exit. There was, though, a small

:09:38. > :09:45.issue with the name. The Government hit an early hurdle

:09:46. > :09:48.with the Great Repeal Bill. Parliamentary draughtsmen said

:09:49. > :09:50.they were not allowed Great(!)

:09:51. > :09:58.so it is just the Repeal Bill. So far, it had been

:09:59. > :10:00.a tale of two cities. By Friday, there was another,

:10:01. > :10:04.Valletta in Malta, where EU leaders were having a meeting

:10:05. > :10:06.and President Tusk, yes, him again, set out draft guidelines

:10:07. > :10:13.for the EU Brexit strategy. Once, and only once,

:10:14. > :10:16.we have achieved sufficient progress on the withdrawal can we discuss

:10:17. > :10:18.the framework for our Starting parallel talks

:10:19. > :10:22.on all issues at the same time, as suggested by some in the UK,

:10:23. > :10:31.will not happen. The EU 27 does not and will not

:10:32. > :10:35.pursue a punitive approach. Brexit in itself is

:10:36. > :10:42.already punitive enough. The pressure on Theresa May to get

:10:43. > :10:45.the Brexit process going has now gone and the stage is being set

:10:46. > :10:47.elsewhere for the showdown But face-to-face discussions

:10:48. > :10:57.are not likely to happen Before May or early June. No one is

:10:58. > :11:04.celebrating just yet. We're joined now from Kent

:11:05. > :11:12.by the former Conservative The EU says it will not talk about a

:11:13. > :11:15.future relationship with the UK until there has been sufficient

:11:16. > :11:23.progress on agreeing the divorce bill. Should the UK agree to this

:11:24. > :11:29.phased approach? Well, I think you can make too much about the sequence

:11:30. > :11:34.and timing of the negotiations. I assume that it will be a case of

:11:35. > :11:38.nothing is agreed until everything is agreed and so any agreements that

:11:39. > :11:43.might be reached on things talked about early on will be very

:11:44. > :11:48.provisional, so I think you can make a big deal about the timing and the

:11:49. > :11:52.sequence when I do not think it really matters as much as all that.

:11:53. > :11:57.Don't people have a right in this country to be surprised of the talk

:11:58. > :12:00.of a massive multi-billion pound divorce settlement? I do not

:12:01. > :12:08.remember either side making much of this in the referendum, do you? No.

:12:09. > :12:11.A select committee of the House of Lords recently reported and said

:12:12. > :12:17.that there was no legal basis for any exit fee. We will have to see

:12:18. > :12:24.how the negotiations go. I think some of the figures cited so far are

:12:25. > :12:29.wildly out of kilter and wildly unrealistic. We will have to see

:12:30. > :12:33.what happens in the negotiations. As one of your panel commented earlier,

:12:34. > :12:37.there will be lots of hares to pursue over the next couple of years

:12:38. > :12:44.and we should not get too excited about any of them. Would you accept

:12:45. > :12:48.that we make... It may not be anything like the figures Brussels

:12:49. > :12:56.is kicking around of 50, 60 billion euros, do you think we will have to

:12:57. > :13:02.make a one-off settlement? If we get everything else we want, if we get a

:13:03. > :13:07.really good trade deal and access for the City of London and so on,

:13:08. > :13:11.speaking for myself, I would be prepared to make a modest payment.

:13:12. > :13:21.But it all depends on the deal we get. What would modest be? Oh, I

:13:22. > :13:24.cannot give you a figure. We are right at the start of the

:13:25. > :13:30.negotiations. I do not think that would be agreed until near the end.

:13:31. > :13:33.The EU says that if there is a transition period of several years

:13:34. > :13:38.after the negotiations, and there is more talk of that, the UK must

:13:39. > :13:43.remain subject to the free movement of peoples and the jurisdiction of

:13:44. > :13:48.the European Court of Justice, would that be acceptable to you? It

:13:49. > :13:51.depends on the nature of the transitional agreement. We are

:13:52. > :13:58.getting well ahead of ourselves here. You cannot, I think, for any

:13:59. > :14:02.judgment as to whether there should be a transitional stage until you

:14:03. > :14:06.know what the final deal is. If there is to be a final deal. And

:14:07. > :14:13.then you know how long it might take to implement that deal. That is

:14:14. > :14:18.something I think that it is really rather futile to talk about at this

:14:19. > :14:22.stage. It may become relevant, depending on the nature of the deal,

:14:23. > :14:27.and that is the proper time to talk about it and decide what the answer

:14:28. > :14:31.to the questions you pose might be. Except the EU has laid this out in

:14:32. > :14:38.its negotiation mandate and it is reasonable to ask people like

:14:39. > :14:42.yourself, should we accept that? It is reasonable for me to say, they

:14:43. > :14:46.will raise all sorts of things in their negotiating mandate and we do

:14:47. > :14:50.not need to form a view of all of them at this stage. Let me try

:14:51. > :14:53.another one. The EU says if they do agree what you have called a

:14:54. > :14:59.comprehensive free trade deal, we would have to accept EU constraints

:15:00. > :15:06.on state aid and taxes like VAT and corporation tax. Would you accept

:15:07. > :15:10.that? Again, I am not sure quite what they have in mind on that. We

:15:11. > :15:15.will be an independent country when we leave and we will make our own

:15:16. > :15:23.decisions about those matters. Not according to know that -- to the

:15:24. > :15:28.negotiating mandate. As I have said, they can put all sorts of things in

:15:29. > :15:32.the negotiating guidelines, it does not mean we have to agree with them.

:15:33. > :15:38.No doubt that is something we can discuss in the context of a free

:15:39. > :15:41.trade agreement. If we get a free trade agreement, that is very

:15:42. > :15:43.important for them as well as for us, and we can talk about some of

:15:44. > :15:55.the things you have just mentioned. Can you please leave a 20 without

:15:56. > :16:01.having repatriated full control of migration, taxis and the law? I

:16:02. > :16:08.think we will have repatriated all three of those things by the time of

:16:09. > :16:11.the next general election. How high would you rate the chances of no

:16:12. > :16:18.deal, and does that prospect worry you? I think the chances are we will

:16:19. > :16:22.get the deal, and I think the chances are we will get a good deal,

:16:23. > :16:30.because that is in the interests of both sides of this negotiation. But

:16:31. > :16:34.it is not the end of the world if we do not get a deal. Most trade in the

:16:35. > :16:39.world is carried out under World Trade Organisation rules. We would

:16:40. > :16:43.be perfectly OK if we traded with the European Union, as with

:16:44. > :16:47.everybody else, under World Trade Organisation rules. It is better to

:16:48. > :16:52.get the deal, and I think we will get the deal, because it is in the

:16:53. > :16:55.interests of both. Let me ask you about Gibraltar. You have campaigned

:16:56. > :17:00.in Gibraltar when the sovereignty issue came up under the Tony Blair

:17:01. > :17:06.government. The EU says that Spain should have a veto on whether any

:17:07. > :17:11.free-trade deal should apply to the Rock. How should the British

:17:12. > :17:16.government replied to that? As it has responded, by making it

:17:17. > :17:23.absolutely clear that we will stand by Gibraltar. 35 years ago this

:17:24. > :17:26.week, Andrew, another woman Prime Minister Centre task force is

:17:27. > :17:29.halfway across the world to protect another small group of British

:17:30. > :17:35.people against another Spanish-speaking country. I am

:17:36. > :17:39.absolutely clear that our current woman Prime Minister will show the

:17:40. > :17:50.same resolve in relation to Gibraltar as her predecessor did.

:17:51. > :17:52.This is not about Spain invading Gibraltar, it is not even about

:17:53. > :17:54.sovereignty, it is about Spain having a veto over whether any

:17:55. > :17:58.free-trade deal that the UK makes with the EU should also apply to

:17:59. > :18:04.Gibraltar. On that issue, how should the British government respond? The

:18:05. > :18:09.British government should show resolve. It is not in the interests

:18:10. > :18:13.of Spain, really, to interfere with free trade to Gibraltar. 10,000

:18:14. > :18:18.people who live in Spain working Gibraltar. That is a very important

:18:19. > :18:23.Spanish interest, so I am very confident that in the end, we will

:18:24. > :18:28.be able to look after all the interests of Gibraltar, including

:18:29. > :18:29.free trade. Michael Howard, thank you for joining us from Kent this

:18:30. > :18:32.morning. Although sometimes it seems

:18:33. > :18:34.like everyone has forgotten, there are things happening

:18:35. > :18:36.other than Brexit. In less than five weeks' time,

:18:37. > :18:39.there will be a round of important domestic elections and there's a lot

:18:40. > :18:42.up for grabs. Local elections take place

:18:43. > :18:45.on the 4th of May in England, In England, there are elections

:18:46. > :18:50.in 34 councils, with 2,370 The majority are county councils,

:18:51. > :18:56.usually areas of strength Large cities where Labour usually

:18:57. > :19:03.fares better are not Six regions of England will also

:19:04. > :19:07.hold elections for newly created combined authority mayors,

:19:08. > :19:10.and there will be contests for directly elected mayors,

:19:11. > :19:16.with voters in Manchester, Liverpool and the West Midlands

:19:17. > :19:19.among those going to the polls. In Scotland, every seat in all 32

:19:20. > :19:22.councils are being contested, many of them affected

:19:23. > :19:24.by boundary changes. Since these seats were last

:19:25. > :19:27.contested, Labour lost all but one Meanwhile, every seat in each

:19:28. > :19:32.of Wales' 22 councils All but one was last elected

:19:33. > :19:38.in 2012 in what was a very strong year for Labour,

:19:39. > :19:40.though independent candidates currently hold

:19:41. > :19:43.a quarter of council seats. According to the latest

:19:44. > :19:44.calculations by Plymouth University Election Centre,

:19:45. > :19:50.the Tories are predicted to increase their tally by 50 seats,

:19:51. > :19:53.despite being in government, But the dramatic story in England

:19:54. > :19:59.looks to be with the other parties, with the Lib-Dems possibly winning

:20:00. > :20:01.100 seats, while Ukip could be seeing a fall,

:20:02. > :20:07.predicted to lose 100 seats. Though the proportional system

:20:08. > :20:08.usually makes big changes less likely in Scotland,

:20:09. > :20:12.the SNP is predicted to increase both the number of seats

:20:13. > :20:14.they hold, and the number In Wales, Labour is defending a high

:20:15. > :20:23.water mark in support. Last year's Welsh Assembly elections

:20:24. > :20:26.suggest the only way is down, with all the parties making modest

:20:27. > :20:28.gains at Labour's expense. Joining me now is the BBC's

:20:29. > :20:31.very own elections guru, Professor John Curtice

:20:32. > :20:38.of the University of Strathclyde. Good to see you again. Let's start

:20:39. > :20:43.with England. How bad are the selection is going to be for Labour?

:20:44. > :20:47.Labourer not defending a great deal because this is for the most part

:20:48. > :20:51.rural England. The only control three of the council they are

:20:52. > :20:56.defending and they are only defending around 500 seats, I nearly

:20:57. > :21:00.a quarter are in one county, Durham. Labour's position in the opinion

:21:01. > :21:03.polls is weakened over the last 12 months and if you compare the

:21:04. > :21:15.position in the opinion polls now with where they were in the spring

:21:16. > :21:18.of 2013 when these seats in England were last fought, we are talking

:21:19. > :21:20.about a 12 point swing from Labour to conservative. The estimate of 50

:21:21. > :21:24.losses may be somewhat optimistic for Labour. Of the three council

:21:25. > :21:27.areas they control, two of them, Nottinghamshire and Derbyshire,

:21:28. > :21:32.could be lost, leaving labourer with virtually a duck as far as council

:21:33. > :21:35.control is concerned in these elections in England. In England,

:21:36. > :21:40.what would a Liberal Democrat reserve urgently great? That is the

:21:41. > :21:44.big question. We have had this picture since the EU referendum of

:21:45. > :21:47.the Liberal Democrats doing extraordinarily well in some local

:21:48. > :21:55.by-elections, gaining seats that they had not even fought before, and

:21:56. > :21:58.in other areas, doing no more than treading water. We are expecting a

:21:59. > :22:01.Liberal Democrat skin because the lost the lot -- the lost lots of

:22:02. > :22:05.ground when they were in coalition with the Conservatives. It is

:22:06. > :22:10.uncertain. A patchy performance may well be to their advantage. If they

:22:11. > :22:13.do well in some places and gain seats, and elsewhere do not do

:22:14. > :22:17.terribly well and do not waste votes, they may end up doing

:22:18. > :22:21.relatively well in seats, even if the overall gaining votes is likely

:22:22. > :22:52.to be modest. The elections for mayors, they are taking place in

:22:53. > :22:56.the Labour will that be a hefty consolation prize for the Labour

:22:57. > :22:58.Party? It ought to be, on Teesside, Merseyside, Greater Manchester. We

:22:59. > :23:01.are looking at one content very closely, that is the contest for the

:23:02. > :23:04.mayor of the West Midlands. If you look at what happened in the general

:23:05. > :23:06.election in 2015, labourer work nine points ahead of the Conservatives in

:23:07. > :23:08.the West Midlands. If you look at the swing since the general

:23:09. > :23:11.election, if you add that swing to where we were two years ago, the

:23:12. > :23:14.West Midlands now looks like a draw. Labour have to worry about a

:23:15. > :23:16.headline grabbing loss, and the West Midlands contest. If they were to

:23:17. > :23:18.lose, that wooden crate -- that would increase the pressure for

:23:19. > :23:22.their own Jeremy Corbyn to convince people that they can turn his

:23:23. > :23:27.party's fortunes around, and in truth at the moment, they are pretty

:23:28. > :23:31.dire. The West Midlands has Birmingham as its heart.

:23:32. > :23:36.Chock-a-block with marginal seats. It always has been. I always

:23:37. > :23:44.remember election night and marginal seats in the West Midlands.

:23:45. > :23:49.Scotland, the SNP is assaulting Labour's last remaining power base.

:23:50. > :23:54.The biggest prizes Glasgow. Will it take it, the SNP? Whether the SNP

:23:55. > :23:58.will gain control of Glasgow is uncertain. If you look at what is

:23:59. > :24:03.happening in local government by-elections let alone the opinion

:24:04. > :24:07.polls, in 2012, when these seats were last fought, Labour did

:24:08. > :24:12.relatively well, only one percentage point behind the SNP who were rather

:24:13. > :24:16.disappointed with the result compared to other elections. No sign

:24:17. > :24:24.of that happening this time alone -- this time around. Polls put the SNP

:24:25. > :24:27.ahead. By-elections have found the SNP advancing and Labour dropping by

:24:28. > :24:30.double digits. Labour are going to lose everything they currently

:24:31. > :24:35.control in Scotland, the SNP will become the dominant party, the

:24:36. > :24:38.question is how well they do. In Scotland there is a Conservative

:24:39. > :24:43.revival going on. The Conservatives did well in recent local government

:24:44. > :24:48.by-elections. At the moment, Labour are expected to come third north of

:24:49. > :24:54.the border in the local elections, repeating the third they suffered in

:24:55. > :24:57.the Holyrood elections last year. In Wales, Labour is expecting to lose

:24:58. > :25:03.control of a number of councils. They are the main party in 12 of 22

:25:04. > :25:07.local authorities. How bad could it be? We're expecting Labour to lose

:25:08. > :25:12.ground. In the opinion polls when these seats were last fought,

:25:13. > :25:17.labourer in the high 40s. Now they are not much above 30%. Cardiff

:25:18. > :25:22.could well join Glasgow was no longer being a Labour stronghold.

:25:23. > :25:25.Look out for Newport. Some of the South Wales councils that Labour

:25:26. > :25:41.control, Labour is probably too but occasionally, Plaid

:25:42. > :25:43.Cymru surprises in this area. They managed to win the Rhondda seat in

:25:44. > :25:45.the assembly elections. Jeremy Corbyn has said he wants to be

:25:46. > :25:48.judged on proper elections, council elections as opposed to opinion

:25:49. > :25:51.polls, but even if he does as badly as John has been suggesting, does it

:25:52. > :25:57.affect his leadership? I think it does on two counts. It will affect

:25:58. > :26:01.his own confidence. Anyone who is a human being will be affected by

:26:02. > :26:06.this. He might go into his office and be told by John McDonnell and

:26:07. > :26:12.others, stand firm, it is all right, but it will affect his confidence

:26:13. > :26:17.and inevitably it contributes to a sense that this is moving to some

:26:18. > :26:21.kind of denoument, at some point. In other words, while I understand the

:26:22. > :26:28.argument that he has won twice in a leadership contest, well, within 12

:26:29. > :26:35.months, I wonder whether this can carry on in a fixed term parliament,

:26:36. > :26:39.up until 2020, if it were to do so. On two France, it will have some

:26:40. > :26:45.impact. I am not seeing it will lead to his immediate departure, it will

:26:46. > :26:50.mark, but if these things are as devastating as John suggests, it

:26:51. > :26:56.will have an impact. Tom, I'll be looking at a Lib Dem fightback? That

:26:57. > :27:01.is the $64,000 question. It would seem that we should be. One massive

:27:02. > :27:05.reason we're not having a general election a time soon, apart from the

:27:06. > :27:08.fact that Theresa May does not believe in these things, she

:27:09. > :27:13.believes in pressing on, it is because Tory MPs in the South West

:27:14. > :27:15.who took the Lib Dem seats, they were telling Number 10 they were

:27:16. > :27:20.worried they were going to lose their seats back to the Lib Dems.

:27:21. > :27:24.The Lib Dems never went away and local government. They have got

:27:25. > :27:29.other campaigners and activists. It looks credible that they will be the

:27:30. > :27:33.success story of the whole thing. Ukip leader, Paul Nuttall, he says

:27:34. > :27:40.this will be the most difficult local elections his party will face

:27:41. > :27:45.before 2020. A bit of management of expectations. It is unlikely to be a

:27:46. > :27:50.good time for Ukip. They are right to manage expectations. The results

:27:51. > :28:10.will be horrible for Ukip. I agree with Tom about the Lib Dem

:28:11. > :28:14.threat to the Tories. Talking to some senior figures within the Tory

:28:15. > :28:16.party earlier this week, I was picking up that they are worried

:28:17. > :28:19.about 30-40 general election seeds being vulnerable to the Lib Dems

:28:20. > :28:21.because of the Labour collapse. I would normally agree with Steve

:28:22. > :28:23.about the resilience of politicians, the capability of withstanding

:28:24. > :28:26.repeated blows, but Jeremy Corbyn is not in the normal category. I think

:28:27. > :28:28.he is, in the sense that although he get solace from winning leadership

:28:29. > :28:33.contest, anyone who leads a party into the kind of, it is not going to

:28:34. > :28:38.be that vivid, because they are not defending the key seats. If they

:28:39. > :28:44.were to win Birmingham, say, and get slaughtered by the SNP in Scotland,

:28:45. > :28:48.it will undermine what is already a fairly ambiguous sense of

:28:49. > :28:50.self-confidence. We need to leave it there. Thank you, John Curtice.

:28:51. > :28:53.Well, with those elections on the horizon, is Labour where it

:28:54. > :28:56.Former leader Ed Miliband was on the Andrew

:28:57. > :28:58.Marr Show earlier and he explained the challenge Labour faces

:28:59. > :29:03.It is easier for other parties, if you are the Greens or the

:29:04. > :29:05.Liberal Democrats you're essentially fishing in the 48% pool.

:29:06. > :29:09.If you are Ukip, you are fishing in the 52% pool.

:29:10. > :29:11.Labour is trying to do something much harder,

:29:12. > :29:13.which is to try and speak for the whole country,

:29:14. > :29:16.and by the way, that is another part of

:29:17. > :29:19.Our attack on Theresa May, part of it is she's

:29:20. > :29:26.Ignoring the verdict going into this, saying,

:29:27. > :29:28.let's overturn it, looks like ignoring the 52%.

:29:29. > :29:34.By the way, there is more that unites Remainers

:29:35. > :29:36.and Leavers than might first appear, because they share common

:29:37. > :29:41.concerns about the way the country is run.

:29:42. > :29:46.Joining me now is the Shadow Health Secretary, Jon Ashworth.

:29:47. > :29:51.Welcome to the programme. Alastair Campbell told me on the BBC on

:29:52. > :29:56.Thursday that he is fighting to reverse the referendum result. Ed

:29:57. > :30:02.Miliband says that Remain needs to accept the result, come to terms

:30:03. > :30:06.with it. Who is right? We have to accept the referendum result. I

:30:07. > :30:11.campaigned passionately to remain in the European Union. The city I

:30:12. > :30:15.represent, Leicester, voted narrowly to remain in the European Union.

:30:16. > :30:20.Sadly the country did not. We cannot overturn that and be like kinky

:30:21. > :30:25.nude, trying to demand the tide go back out. We have to accept this

:30:26. > :30:33.democratic process. We all voted to have a referendum when the relevant

:30:34. > :30:41.legislation came to Parliament. How bad will the local elections before

:30:42. > :30:47.Labour? Let us see where we get to on election night when I am sure I

:30:48. > :30:56.will be invited on to one of these types of programmes... The election

:30:57. > :30:59.date, the following day. But it does look like you will lose seats across

:31:00. > :31:04.the board in England, Scotland and Wales. What did you make of what

:31:05. > :31:09.Steve Richards said about the impact on Jeremy Corbyn's leadership? We

:31:10. > :31:16.have to win seats, we cannot fall back on the scales suggested. No,

:31:17. > :31:23.your package was right, it tends to be Tory areas, but generally, we

:31:24. > :31:27.have to be winning in Nottinghamshire, Lancashire, those

:31:28. > :31:31.types of places because they contain a lot of the marginal constituencies

:31:32. > :31:36.that decide general elections. The important places in the elections

:31:37. > :31:43.are towns like Beeston, towns you have not heard of, but they are

:31:44. > :31:48.marginal towns in marginal swing constituencies. We have to do well

:31:49. > :31:51.in them. We will see where we are on election night but my pretty is to

:31:52. > :31:59.campaign hard in these areas over the next few weeks. Even people who

:32:00. > :32:05.voted Labour in 2015, they prefer Theresa May to Mr Corbyn as Prime

:32:06. > :32:09.Minister, a recent poll said. Isn't that extraordinary? I have not seen

:32:10. > :32:17.that. I will look it up. It was you Government. -- YouGov. It is

:32:18. > :32:22.important we win the trust of people. You are not winning the

:32:23. > :32:29.trust of people who voted for you in 2015. We have to hold onto people

:32:30. > :32:32.who voted for us in 2015 and we have to persuade people who voted for

:32:33. > :32:37.other parties to come to us. One of the criticisms I have of the debate

:32:38. > :32:42.that goes on in the wider Labour Party, do not misunderstand me, I am

:32:43. > :32:46.not making a criticism about an individual, but the debate you see

:32:47. > :32:52.online suggests that if you want to get people who voted Conservative to

:32:53. > :32:56.switch to Labour it is somehow a betrayal of our principles, it was

:32:57. > :33:02.not. Justin Trudeau said Conservative voters are our

:33:03. > :33:07.neighbours, our relatives. We have to persuade people to switch from

:33:08. > :33:14.voting Conservative to voting Labour as well as increasing our vote among

:33:15. > :33:19.nonvoters and Greens. It seems like you have a mountain to climb and the

:33:20. > :33:25.mountain is Everest. Another poll, I am not sure if you have seen this,

:33:26. > :33:35.in London, the Bastian of Labour, the Bastian of Remain, Mr Corbyn is

:33:36. > :33:40.less popular than even Ukip's Paul Nuttall. That is beyond

:33:41. > :33:44.extraordinary! I do not know about that. The most recent set of

:33:45. > :33:50.elections in London was the mayoral election where the Labour candidate

:33:51. > :33:56.city: won handsomely. He took the seat of a conservative. We took that

:33:57. > :34:09.of a conservative. It was a year ago. We did well then. You had an

:34:10. > :34:12.anti-Jeremy Corbyn candidate. I think he nominated Jeremy Corbyn,

:34:13. > :34:16.from memory. We have not got elections in London but our

:34:17. > :34:27.elections are in the county areas and the various mayoral elections...

:34:28. > :34:31.What about the West Midlands? In any normal year, mid-term, as the

:34:32. > :34:37.opposition, Labour should win the West Midlands. John Curtis says it

:34:38. > :34:41.is nip and tuck. It has always been a swing region but we want to do

:34:42. > :34:48.well, of course. We want to turn out a strong Labour vote in Dudley,

:34:49. > :34:54.Northampton, those sorts of places. They are key constituencies in the

:34:55. > :34:59.general election. Does Labour look like a government in waiting to you?

:35:00. > :35:04.What I would say is contrast where we are to what the conservative

:35:05. > :35:08.garment is doing. I asked you about Labour, you do not get to tell me

:35:09. > :35:13.about the Conservatives. Does it look like a government in waiting to

:35:14. > :35:17.you? Today we are exposing the Conservatives... Reminding people

:35:18. > :35:22.the Conservatives are breaking the pledge on waiting times of 18 weeks

:35:23. > :35:28.so lots of elderly people waiting longer in pain for hip replacements

:35:29. > :35:31.and cataract replacements. Yesterday the Housing spokesperson John Healey

:35:32. > :35:36.was exposing the shortcomings in the Help to Buy scheme. The education

:35:37. > :35:40.spokesperson has been campaigning hard against the cuts to schools.

:35:41. > :35:45.Tom Watson has been campaigning hard against some of the changes the

:35:46. > :35:49.Government want to introduce in culture. The Shadow Cabinet are

:35:50. > :35:54.working hard to hold the Government's feet to the fire. Does

:35:55. > :36:00.it look like a government in waiting? Yes. It took you three

:36:01. > :36:04.times! There is a social care crisis, schools funding issue, a

:36:05. > :36:08.huge issue for lots of areas, the NHS has just got through the winter

:36:09. > :36:17.and is abandoning many of its targets. You are 18 points behind in

:36:18. > :36:23.the polls. We have to work harder. What can you do? The opinion polls

:36:24. > :36:28.are challenging but we are a great Social Democratic Party of

:36:29. > :36:31.government. On Twitter today, lots of Labour activists celebrating that

:36:32. > :36:35.the national minimum wage has been in place for something like 16 years

:36:36. > :36:41.because we were in government. Look of the sweeping progressive changes

:36:42. > :36:45.this country has benefited from, the NHS, sure start centres, an assault

:36:46. > :36:50.on child poverty, the Labour Party got itself in contention for

:36:51. > :36:55.government. I entirely accept the polls do not make thrilling reading

:36:56. > :36:58.for Labour politicians on Sunday morning, but it means people like me

:36:59. > :37:01.have to work harder because we are part of something bigger than an

:37:02. > :37:05.individual, we are in the business of changing things for the British

:37:06. > :37:09.people and if we do not do that, if we do not focus on that, we are

:37:10. > :37:17.letting people down. Is Labour preparing for an early election

:37:18. > :37:22.question Billy burqa? Reports in the press of a war chest as macro for an

:37:23. > :37:26.early election? The general election coordinator called for a general

:37:27. > :37:29.election when Theresa May became Prime Minister. We are investing in

:37:30. > :37:35.staff and the organisational capability we need. By the way, the

:37:36. > :37:40.Labour Party staff do brilliant work. A bit of nonsense on Twitter

:37:41. > :37:43.having a go at them. They do tremendous work. Whenever the

:37:44. > :37:52.election comes, they will be ready. Jon Ashworth, thank you.

:37:53. > :38:03.Welcome to the Sunday Politics in the Midlands.

:38:04. > :38:06.And this week, it's the Digby and Rigby Show.

:38:07. > :38:09.Digby Jones tells us why he's convinced we'll make a success

:38:10. > :38:15.And Sir Peter Rigby, the head of a business empire.

:38:16. > :38:19.Does he still think Brexit will be a disaster?

:38:20. > :38:22.And how do our two MPs here today see this "momentous journey",

:38:23. > :38:27.Wendy Morton, Conservative MP for Aldridge-Brownhills.

:38:28. > :38:30.And Jack Dromey, Labour MP for Birmingham Erdington.

:38:31. > :38:34.Good to have you both here with us today.

:38:35. > :38:38.Just three hours before she signed that letter to Donald Tusk,

:38:39. > :38:40.Theresa May was in Birmingham, for what we were told

:38:41. > :38:43.was "a vote of confidence in the Midlands Engine,

:38:44. > :38:47.In theory, the biggest-ever trade forum staged jointly by the British

:38:48. > :38:51.and Qatari governments had nothing whatsoever to do with Article 50.

:38:52. > :38:54.In practice, a ?5 billion injection into Birmingham Airport,

:38:55. > :39:01.the NEC, education, healthcare, and cyber security projects

:39:02. > :39:03.clearly gave one of her Cabinet colleagues grounds for hope,

:39:04. > :39:06.that the world won't end in two years' time.

:39:07. > :39:09.Britain is open for international trade.

:39:10. > :39:13.In fact, we are a champion of free trade.

:39:14. > :39:16.When you look at the world as it is developing now,

:39:17. > :39:18.90% of global growth is actually being generated

:39:19. > :39:22.The fact that they have brought the biggest ever inwards investment

:39:23. > :39:26.delegation in our history to Birmingham is a real testament

:39:27. > :39:30.to the opportunities and to the transformation

:39:31. > :39:39.It certainly felt like a very sincere demonstration of confidence

:39:40. > :39:43.in post-Brexit Britain, and the Midlands in particular.

:39:44. > :39:46.Inward investment into Birmingham and Britain is very welcome,

:39:47. > :39:53.But very big problems lie ahead for us at the next stages.

:39:54. > :40:03.Crucially, it's about the deal that we now strike.

:40:04. > :40:06.I was strongly for Remain, but we've got to try and make Brexit

:40:07. > :40:11.That means certain fundamentals, one of which is access to the single

:40:12. > :40:14.Because it is our single biggest market.

:40:15. > :40:16.If we lose that then, for example, the Jaguar

:40:17. > :40:20.workers in my constituency, currently producing cars,

:40:21. > :40:21.exporting into Europe, will see tariff barriers,

:40:22. > :40:26.So there are key issues that we have got a crack at the next stages.

:40:27. > :40:29.And that is the very point that Doctor Ralf Speth, the boss of JLR,

:40:30. > :40:34.After all, yes, we have a trade surplus with China uniquely in this

:40:35. > :40:37.region, and JLR is a big part of that story.

:40:38. > :40:39.But he's worried about access to his biggest markets,

:40:40. > :40:47.Just going back to your point about the Qatar business visit,

:40:48. > :40:49.I think that really shows confidence in the West Midlands and

:40:50. > :40:57.Whilst I did vote remain, it was an unbalanced decision.

:40:58. > :41:01.I take the view now that it is for us as a region and the country to go

:41:02. > :41:04.out and get the best deal for the UK.

:41:05. > :41:08.On Ralf Speth's point about access to Europe for the JLR.

:41:09. > :41:11.Absolutely, and it's not just about JLR, it's about the businesses

:41:12. > :41:15.I come from a business background myself, so I know

:41:16. > :41:19.But there are businesses in my constituency as well,

:41:20. > :41:23.so I will be wanting to make sure we get the best for those as well.

:41:24. > :41:25.I think this is an opportunity that we must go out

:41:26. > :41:33.In this age of ultra-fast fibre-optic broadband,

:41:34. > :41:39.there was something very quaint about the way Britain's Ambassador

:41:40. > :41:43.to the EU, the increasingly famous son of Leamington Spa,

:41:44. > :41:45.Sir Tim Barrow, hand-delivered that letter from Theresa May

:41:46. > :41:47.to Donald Tusk, the President of the European Council.

:41:48. > :41:52.So now we can expect two years' of talk about roller-coaster rides,

:41:53. > :41:56.I wonder if our political reporter, Sian Grzeszczyk,

:41:57. > :42:03.However you describe this, there's no turning back now.

:42:04. > :42:05.And as journeys go, some are straightforward.

:42:06. > :42:13.Others, well, are a bit of a rollercoaster.

:42:14. > :42:16.And now that Brexit has been triggered, the journey truly begins.

:42:17. > :42:17.Brexiteers and Remainers are all speculating

:42:18. > :42:21.about the ups and downs on the track ahead.

:42:22. > :42:24.But with so many unknowns, no-one can tell for certain just how

:42:25. > :42:29.things will look when we do get off the EU ride in two years' time.

:42:30. > :42:31.The only way is up, according to the owner

:42:32. > :42:35.of Drayton Manor theme park - he voted out.

:42:36. > :42:37.So what does he hope will be the benefits for his business?

:42:38. > :42:40.Cutting out red tape, if we can, would be wonderful.

:42:41. > :42:48.The tourism industry is huge, it's the fourth largest industry

:42:49. > :42:53.It's very important for us to be able to get on with our jobs,

:42:54. > :42:56.instead of having to continually look at health and safety

:42:57. > :43:02.that is ludicrous because it's come from the EU.

:43:03. > :43:04.There are concerns about the timescale -

:43:05. > :43:08.is two years long enough to negotiate a good enough deal

:43:09. > :43:13.and to dodge things like expensive tarriffs?

:43:14. > :43:16.I voted to stay in, but now it's happened,

:43:17. > :43:19.I just think we've got to make the most of it.

:43:20. > :43:23.The country's not going to fall to bits, I don't think.

:43:24. > :43:25.Over in Aston, Jason Wouhra's cash and carry business

:43:26. > :43:27.is already losing thousands because of the weakened pound.

:43:28. > :43:29.He thinks there are a number of risks

:43:30. > :43:34.if the UK doesn't get a good enough deal.

:43:35. > :43:39.The risks are it becomes a lot more difficult to export,

:43:40. > :43:41.a bigger paper trail, more customs, more tariffs,

:43:42. > :43:45.And that will make things more and more difficult.

:43:46. > :43:48.I think that we will find if the right deal isn't struck,

:43:49. > :43:50.UK businesses will become a little bit more insular and probably

:43:51. > :43:55.At the moment, with our economy, we need to export

:43:56. > :44:00.It is a plan for a new, deep and special partnership between

:44:01. > :44:04.And as Prime Minister triggered Article 50,

:44:05. > :44:07.this Midlands Brexiteer had plenty to say.

:44:08. > :44:11.We were promised death of the first-born by Friday,

:44:12. > :44:14.we were promised a plague of frogs and locusts and all this.

:44:15. > :44:18.The fall in sterling has really helped because, of course,

:44:19. > :44:21.what it's done is it's made how exports cheaper around the world.

:44:22. > :44:29.And it actually made sure that we've reached out more

:44:30. > :44:34.to the rest of the world, and that's no bad thing.

:44:35. > :44:36.Whilst many Brexiteers are probably celebrating with a pint,

:44:37. > :44:46.Remainers are concerned about things spinning out of control.

:44:47. > :44:47.Certainly no joyride, these negotiations.

:44:48. > :44:51.And also here with us here today, Sir Peter Rigby, who has described

:44:52. > :44:55.He's the Founder, Chief Executive and Chairman of the Rigby Group,

:44:56. > :45:00.which includes aviation, financial services,

:45:01. > :45:03.property and information technology businesses.

:45:04. > :45:06.You saw there what Digby Jones said - no plague of locusts.

:45:07. > :45:14.Well, I was very much a Remainer, Patrick, driven mostly by the fact

:45:15. > :45:17.that I spent many years creating a European business.

:45:18. > :45:22.20 countries, thousands of people in the technology field.

:45:23. > :45:24.The thought of losing that market position was of great concern.

:45:25. > :45:27.It's a market, at the end of the day, worth 500 billion.

:45:28. > :45:36.Providing we haven't lost the relationship with that,

:45:37. > :45:39.and that is the key negotiating stance for me, then I think

:45:40. > :45:44.Business is very pragmatic, and I am too.

:45:45. > :45:47.The desire to remain is left behind, and we are now

:45:48. > :45:52.And indeed you do speak with the experience of wanting that

:45:53. > :45:55.ride righty of business interests that you mentioned there.

:45:56. > :45:58.Liam Fox, when I was talking to him that at that forum,

:45:59. > :46:01.also said to me that 90% of the global growth at the moment

:46:02. > :46:05.So there is plenty left out there of opportunities

:46:06. > :46:12.There is, but it's going to take an awful lot of Australias

:46:13. > :46:15.and New Zealands to make up for a 500 billion

:46:16. > :46:22.I was with Liam Fox ten days ago, in Vietnam, where he came

:46:23. > :46:26.to open my new global call centre in Vietnam.

:46:27. > :46:29.Of course, we are trying hard to entice nations like Vietnam,

:46:30. > :46:34.but they do 4 billion only with us in trade.

:46:35. > :46:37.So we certainly should be working these markets,

:46:38. > :46:45.At the end of the day, we've also got to protect our

:46:46. > :46:49.When governments go into difficult negotiations, you will often hear

:46:50. > :46:51.ministers sort of talking expectations down a little bit

:46:52. > :46:54.in the hope that, in the end, they can pull the rabbit out

:46:55. > :46:57.This time, expectations seem to be managed upwards,

:46:58. > :47:03.Does that surprise you, the way it's being handled?

:47:04. > :47:14.But free and open access to markets are the objective?

:47:15. > :47:17.Yes, I don't think it's quite as easy as that.

:47:18. > :47:20.I mean, we've got to gear up and step up and invest to do

:47:21. > :47:26.Therefore our businesses here need protection, they need support,

:47:27. > :47:29.they need financial support as well, and encouragement to do this.

:47:30. > :47:38.The incentives that I'm offered to redecorate one of my Paris

:47:39. > :47:41.operations to northern France in terms of salary support,

:47:42. > :47:50.in terms of office accommodation and so on are enormous.

:47:51. > :47:53.Could you put a cost on the likely cost of Brexit?

:47:54. > :47:58.A number on it, as far as your businesses are concerned?

:47:59. > :48:03.No, we are positive about this, let me make that quite clear.

:48:04. > :48:06.We have just recorded our best ever year's trading in 40 years.

:48:07. > :48:14.Having said that, in technology, I know that many decisions have been

:48:15. > :48:26.shelved, many long-term investments have been shelved because what

:48:27. > :48:30.And indeed uncertainty in spades is what this process over

:48:31. > :48:33.the next how many years, practically, is going to bring us.

:48:34. > :48:37.So what would you say to reassure people?

:48:38. > :48:39.I take a very pragmatic view, like Sir Peter.

:48:40. > :48:41.There will be challenges along the way.

:48:42. > :48:44.But, at the same time, we have got to go out

:48:45. > :48:52.We've got to go out and seek out not just to further develop

:48:53. > :48:54.relationships with had with those EU partners that we had

:48:55. > :48:57.when we were within the EU, because they will want to trade

:48:58. > :49:02.But also we must use is as an opportunity to look

:49:03. > :49:04.beyond Europe and look for new markets.

:49:05. > :49:06.Let me point out to you one thing that struck me

:49:07. > :49:09.in the Prime Minister's statement the other day, that worker

:49:10. > :49:11.protection is one of the issues that Labour is expressing,

:49:12. > :49:16.Theresa May said that she gets that, and the Government may in certain

:49:17. > :49:20.areas seek to strengthen worker protection outside the EU.

:49:21. > :49:23.That's an important political reaching out to working people up

:49:24. > :49:25.in your constituency, I suggest.

:49:26. > :49:32.You'll forgive me if, from bitter experience -

:49:33. > :49:36.I took a case to the European court of justice to win protection under

:49:37. > :49:38.the transfer of undertakings for 6 million public servants,

:49:39. > :49:47.The Brexiteers are led by those who for years have argued

:49:48. > :49:50.against what they called red tape but I call workers' writes.

:49:51. > :49:54.Indeed, in the piece just now, to hear health and safety

:49:55. > :49:59.Health and safety is the difference between people living and dying,

:50:00. > :50:04.Somebody would say that is a reason why we should have

:50:05. > :50:06.There are differences between what we would describe

:50:07. > :50:09.as red tape and what you would describe as workers' rights.

:50:10. > :50:12.The repeal Bill is going to bring those rights that are currently

:50:13. > :50:14.in Europe to the UK, so then we will have our

:50:15. > :50:16.own sovereign power, we can look at those.

:50:17. > :50:22.I will wait and see because I'm quite certain

:50:23. > :50:25.that the Prime Minister really does get this piece.

:50:26. > :50:28.At that Drayton Manor theme park, I was interested to discover

:50:29. > :50:30.that there were actually 23 different nationalities working

:50:31. > :50:37.This raises the whole question of recruitment and access,

:50:38. > :50:39.movement of people, which is also part of this big negotiation.

:50:40. > :50:42.One of our business interests is hotels.

:50:43. > :50:50.I would say that 70% of the staff are EU nationals.

:50:51. > :50:53.They are very good at what they do, they have a real work ethic,

:50:54. > :50:57.To lose those people would massively damage the leisure industry,

:50:58. > :51:08.So somehow, we certainly got to keep those people we have here.

:51:09. > :51:10.There were 700,000 people working in hospitality in this country

:51:11. > :51:25.I was talking to a major employer, one of our vice chancellors

:51:26. > :51:27.here in Birmingham, in the last 48 hours.

:51:28. > :51:28.They already saying that they are having

:51:29. > :51:30.real problems retaining, key people with key skills

:51:31. > :51:32.who are going back home because they don't see

:51:33. > :51:37.Where do you see this country in, let's say, five years' time?

:51:38. > :51:41.Five years is a long time, isn't it, in this day and age.

:51:42. > :51:43.As far as we're concerned, we will continue to invest

:51:44. > :51:45.and look after our businesses and develop them.

:51:46. > :51:48.I think the nature of the business will change.

:51:49. > :51:51.For example, we are investing heavily in R

:51:52. > :51:52.We are interested in cognitive computing,

:51:53. > :52:00.In five years' time, that will be absolutely across the piece,

:52:01. > :52:03.and that will bring its own problems with it too, by the way.

:52:04. > :52:07.In particular, thanks to you for being with us today, Sir Peter.

:52:08. > :52:10."A cabal of right-wing Labour MPs from the West Midlands."

:52:11. > :52:15.That's the scathing description by the Unite union leader,

:52:16. > :52:18.Len McCluskey, of what he sees as smear tactics,

:52:19. > :52:22.designed to undermine his re-election campaign.

:52:23. > :52:25.It follows a call by John Spellar, Labour MP for Warley,

:52:26. > :52:27.for an investigation into some of the union branches

:52:28. > :52:31.As Nick Watson explains, it all revives memories

:52:32. > :52:36.of the bitter battles which tore Labour apart in the '80s.

:52:37. > :52:39.After weeks of campaigning, voting is now underway.

:52:40. > :52:41.But this election isn't just about the future of Unite,

:52:42. > :52:43.it's also about the future of the Labour party.

:52:44. > :52:46.Len McCluskey is the left-wing leader seeking re-election -

:52:47. > :52:55.Gerard Coyne is supported by so-called moderate Labour MPs -

:52:56. > :52:57.many of them from the West Midlands -

:52:58. > :53:01.who want to see the back of Mr McCluskey and Mr Corbyn.

:53:02. > :53:04.It's time for our union to be focused on matters that

:53:05. > :53:05.actually our members are concerned about.

:53:06. > :53:08.That's about protecting them at work, improving their pay

:53:09. > :53:12.and conditions, rather than messing around in Westminster politics.

:53:13. > :53:15.Labour's deputy leader, West Bromwich East MP Tom Watson

:53:16. > :53:18.recently alleged there was a plot involving Unite and the Corbyn

:53:19. > :53:22.supporting Momentum group to take control of Labour.

:53:23. > :53:32.Now Warley MP John Spellar has entered the fray.

:53:33. > :53:34.He's reported Unite to the trade union certification officer,

:53:35. > :53:36.suggesting irregularities in some of the branches declaring

:53:37. > :53:40.He won his battle is to expel the hard left from the Labour Party

:53:41. > :53:43.in the 1980s, but does he think he'll be successful this time?

:53:44. > :53:49.It's only when we had won that battle inside the Labour Party that,

:53:50. > :53:51.in 1997, we won the confidence of the British people

:53:52. > :53:58.On a visit to the region on Friday to back BMW workers,

:53:59. > :54:05.There is a cabal of West Midlands MPs who are attempting to abuse

:54:06. > :54:08.the democracy of Unite, and they are trying

:54:09. > :54:11.to turn our election into a completely separate election,

:54:12. > :54:15.an election to do with the Labour Party.

:54:16. > :54:18.These individuals are skilled in the dark arts.

:54:19. > :54:20.It's in their DNA, they've been doing it for years.

:54:21. > :54:26.The result of the Unite election will be announced later this month.

:54:27. > :54:29.For Labour, it could be a defining moment every bit as important

:54:30. > :54:37.And there's a third candidate in this Unite leadership election.

:54:38. > :54:43.And Mr McCluskey also confirmed Tom Watson

:54:44. > :54:46.and Jack Dromey were in that Right Wing West Midlands

:54:47. > :54:51."Labour cabal", which he branded "shameful and disgraceful."

:54:52. > :54:53.It's all getting a bit personal, isn't it?

:54:54. > :54:56.You've written a column in the Birmingham Mail

:54:57. > :54:58.in which you have a real go at Len McCluskey, saying

:54:59. > :55:04.that he is seeking to take control of the Labour Party, dooming the

:55:05. > :55:13.When he describes me as being part of a

:55:14. > :55:15.right-wing cabal, I was born on the left

:55:16. > :55:18.But the more important thing is this.

:55:19. > :55:20.Unions have never been more important than they are now.

:55:21. > :55:23.What we need is strong leadership which focuses on why

:55:24. > :55:26.a union exists, and that its members in the world of work.

:55:27. > :55:28.Gerard is one of the most outstanding trade

:55:29. > :55:32.unionists that I have ever worked with.

:55:33. > :55:35.I believe he is capable of leading a renaissance of trade

:55:36. > :55:43.For me, as an old union man who came through

:55:44. > :55:49.the ranks of the Transport and General and then ultimately the

:55:50. > :55:51.deputy of Unite, I want to see the union succeed.

:55:52. > :55:54.Len's problem is he is focused on control.

:55:55. > :55:55.Control of the union and control

:55:56. > :55:59.For me, it is about the union, not the Labour Party.

:56:00. > :56:01.But Len, for too long, has focused on the

:56:02. > :56:07.Labour Party, the Labour Party, the Labour Party.

:56:08. > :56:10.It's about time we focused on the union, the union, the union.

:56:11. > :56:14.The problem with that is both sides are saying this is all about

:56:15. > :56:16.the union and not meddling in Westminster politics.

:56:17. > :56:20.But it actually is surely seen absolutely as a battle

:56:21. > :56:24.for the leadership, the very future of the Labour Party itself.

:56:25. > :56:26.Given, if you look at the links between the various people

:56:27. > :56:31.involved in this, it clear as daylight

:56:32. > :56:33.that that is what this is all about, isn't it?

:56:34. > :56:42.Len has been focused on control of the Labour

:56:43. > :56:45.Party, and I'm not to sure that he's that fussed about whether or not

:56:46. > :56:47.the Labour Party ever again forms of Parliament.

:56:48. > :56:51.Ultimately, that means, in the world of work,

:56:52. > :56:53.strong and effective trade union organisations that can stand

:56:54. > :56:57.In the corridors of power, the support of

:56:58. > :56:59.the country is needed to form a government.

:57:00. > :57:02.I don't want to see working people let down by us being

:57:03. > :57:07.You resigned a shadow ministerial job in order to

:57:08. > :57:09.try and accelerate Jeremy Corbyn's departure from leadership,

:57:10. > :57:15.and yet he just seems to get stronger in the party,

:57:16. > :57:18.the more people in your cabal, if that is the word, oppose him.

:57:19. > :57:20.We've got a real problem with that, there's no doubt.

:57:21. > :57:22.It's not appropriate just to personalise it

:57:23. > :57:25.Right now, we are not regarded to be a credible

:57:26. > :57:29.We have got to rebuild and win a fresh

:57:30. > :57:36.the trust of the British people because I do not want to see, with

:57:37. > :57:40.the greatest of respect to you, Wendy, an eternal opposition for

:57:41. > :57:42.the Labour Party and eternal government

:57:43. > :57:46.Do you think they are right when they say that the union should

:57:47. > :57:50.focus exquisitely on their members and not on meddling in politics?

:57:51. > :57:53.Jack mentioned the words strong leadership, and I think what we're

:57:54. > :57:55.seeing here is a battle within the unions, a lack

:57:56. > :57:58.of leadership for both unions and within the Labour Party,

:57:59. > :58:07.to sort out with his cabal what the way forward is.

:58:08. > :58:13.You contrast that with the strong leadership that we

:58:14. > :58:16.have within government, at a time when this country, as we recognise

:58:17. > :58:17.and acknowledge, faces challenges, we need strong leadership.

:58:18. > :58:23.So what else has been making the news here over this past week?

:58:24. > :58:26.is brought to us today by Ben Godfrey.

:58:27. > :58:29.The Asphalt Industry Alliance says it would cost councils a staggering

:58:30. > :58:33.?1.25 billion to fill in the region's potholes.

:58:34. > :58:35.A report to the board running Shropshire's hospitals

:58:36. > :58:38.says Telford's A may have to close overnight

:58:39. > :58:44.to the West Midlands mayoral election,

:58:45. > :58:46.Labour's candidate launched his manifesto

:58:47. > :58:53.in the Black Country with a promise to boost apprenticeships.

:58:54. > :59:00.I'm saying, for every ?1 million that we invest in infrastructure in

:59:01. > :59:05.the West Midlands, we need to deliver on apprenticeship to improve

:59:06. > :59:07.the skill of our young people. Wolverhampton Labour MP Pat McFadden

:59:08. > :59:09.has written a letter signed by 85 MPs and MEPs defending

:59:10. > :59:12.the BBC's Brexit coverage after Solihull Tory Julian Knight wrote

:59:13. > :59:17.one saying it was too pessimistic. And BMW workers at the Hams Hall

:59:18. > :59:19.engine plant in Warwickshire have voted for strike action

:59:20. > :59:22.in protest at plans to close their

:59:23. > :59:36.final salary pension scheme. The threat of a strike there looms

:59:37. > :59:41.at BMW. The usable that strike? BMW is a profitable, successful Company.

:59:42. > :59:45.Key to that success is its workforce. It is wrong to close the

:59:46. > :59:50.pension scheme. I'm behind the workers. Do you have sympathy for

:59:51. > :59:56.people who are losing salary late did pensions? I do have simply with

:59:57. > :59:59.those workers, but it is a commercial matter to be resolved

:00:00. > :00:06.between the employers and those on strike. I would hope that they would

:00:07. > :00:09.come to an amicable arrangement. Briefly, these are often seen as

:00:10. > :00:14.gold-plated pensions will stop increasingly for many out there,

:00:15. > :00:18.they are a thing of the past. Why should these workers be different?

:00:19. > :00:20.Because security and dignity in retirement matters would begin work

:00:21. > :00:24.all your life for a company and you are key to its success, you are

:00:25. > :00:26.entitled in your old age two and a decent pension.

:00:27. > :00:27.My thanks to Wendy Morton and Jack Dromey.

:00:28. > :00:30.Finally from me, a word about a special programme

:00:31. > :00:32.I'll be presenting in a couple of weeks' time.

:00:33. > :00:34.A Mayor For The West Midlands is our BBC Midlands Debate show,

:00:35. > :00:36.in which the main contenders will go head-to-head

:00:37. > :00:41.Join us on Thursday the 20th of April at 10:45pm,

:00:42. > :00:45.that's immediately after the News, here on BBC One.

:00:46. > :00:47.And Sunday Politics will return after its Easter break,

:00:48. > :01:05.This, though, is where we rejoin Andrew Neil.

:01:06. > :01:07.So, what will be the effect of new tax and benefit changes

:01:08. > :01:11.Will the Government's grand trade tour reap benefits?

:01:12. > :01:13.And are the Lib Dems really going to replace Labour,

:01:14. > :01:25.To answer that last question, I'm joined by from Salford

:01:26. > :01:30.by the Lib Dem MP, Alistair Carmichael.

:01:31. > :01:39.Michael Fallon sirs the Lib Dems will replace Labour. How long will

:01:40. > :01:44.it take? We will have to wait and see. Anyone who thinks you can

:01:45. > :01:50.predict the future is engaged in a dodgy game. I have been campaigning

:01:51. > :01:55.with the Liberal Democrats in Manchester... You must not

:01:56. > :02:02.mention... You know the by-election rules. It is only an illustration.

:02:03. > :02:12.Across false ways of the country, the Liberal Democrats are back in

:02:13. > :02:16.business -- across whole swathes of the country. Part of the reason why

:02:17. > :02:21.we are getting a good response is because the Labour Party under

:02:22. > :02:26.Jeremy Corbyn has taken such a self-destructive path. Even if you

:02:27. > :02:30.do pretty well in the local elections, it you have to make up

:02:31. > :02:37.lost ground from the time you did very well in previous times, you

:02:38. > :02:41.used to have 4700 councillors. It will take you a long while to get

:02:42. > :02:45.back to that. You will get no argument from me that we have a

:02:46. > :02:50.mountain to climb. What I'm telling you is, and if this is not just in

:02:51. > :02:55.this round of elections, it is in the other by-elections in places

:02:56. > :03:00.like Richmond, and in by-elections write the length and breadth of the

:03:01. > :03:04.country since last June, the Liberal Democrats are taking seats from the

:03:05. > :03:12.Labour Party under Conservative Party, and not just in Brexit phobic

:03:13. > :03:15.areas. Not just in Remain areas. But in places like Sunderland as well

:03:16. > :03:22.which voted very heavily for Brexit. In fact, that vote was in large part

:03:23. > :03:26.as well a protest against the way in which the Labour Party really has

:03:27. > :03:31.taken these areas for granted over the years. That is why the ground is

:03:32. > :03:37.fertile for us. In the local elections which is what we are

:03:38. > :03:41.discussing today, why would anybody vote for the Liberal Democrats if

:03:42. > :03:50.they believed in Brexit? Mr Farren has said he wants to reverse works.

:03:51. > :03:54.If you are Brexit supporter and you are considering how to cast your

:03:55. > :03:58.vote, first of all, I think you will be looking at the quality of

:03:59. > :04:01.representation you can get for your local area and you are right, we

:04:02. > :04:10.have a lot of ground to recoup from previous elections, we lost 124

:04:11. > :04:15.seats, communities have now had a few years to reflect on the quality

:04:16. > :04:18.of service they have been able to get and they have missed the very

:04:19. > :04:24.effective liberal Democrat councillors they have had. This is

:04:25. > :04:29.not just about whether you are a believer or remainer, ultimately,

:04:30. > :04:35.that is an issue we are going to have to settle and we will settle it

:04:36. > :04:39.not in the way the Government is having by dictating the terms of the

:04:40. > :04:44.debate, but by bringing the whole country together. I think that is

:04:45. > :04:48.something you can only do if, as we have suggested, you give the people

:04:49. > :04:51.the opportunity to have a say on the deal when Theresa May eventually

:04:52. > :04:57.produces it. The only way you could really replace Labour in the

:04:58. > :05:02.foreseeable future would be if a big chunk of the centre and right of the

:05:03. > :05:07.Labour Party came over and join due in some kind of new social

:05:08. > :05:12.democratic alliance. -- joined you. There is no sign that will happen? I

:05:13. > :05:16.do not see whether common purpose is anymore holding the Labour Party

:05:17. > :05:21.together. That is for people in the Labour Party to make their own

:05:22. > :05:29.decisions. Use what happened to the Labour Party in Scotland. -- you

:05:30. > :05:33.saw. Politics moved on and left them behind and they were decimated as a

:05:34. > :05:37.consequence of that. So was your party. It is possible the same thing

:05:38. > :05:42.could happen to the Labour Party and the rest of the UK. Politics is

:05:43. > :05:49.moving on and they are coming up with 1970s solutions to problems in

:05:50. > :05:55.2017. Alistair Carmichael, thanks for joining us. Let us have a look

:05:56. > :06:01.at some of the tax and benefit changes coming up this week. The tax

:06:02. > :06:05.changes first of all. The personal allowance is going to rise to

:06:06. > :06:10.?11,500, the level at which you start to pay tax. The higher rate

:06:11. > :06:16.threshold, where you start to play at 40%, that will rise from

:06:17. > :06:25.currently ?43,400, rising up to 40 5000. -- pay. Benefit changes,

:06:26. > :06:32.freeze on working age benefits, removal of the family element of tax

:06:33. > :06:36.credits and universal credit, that is a technical change but quite an

:06:37. > :06:43.impact. The child element of tax credit is going to be limited to two

:06:44. > :06:50.children on any new claims. The Resolution Foundation has crunched

:06:51. > :06:56.the numbers and they discovered that when you take the tax and benefit

:06:57. > :07:04.changes together, 80% go to better off households and the poorest third

:07:05. > :07:09.or worse. What help -- what happened to help the just about managing? The

:07:10. > :07:13.Resolution Foundation exists to find the worst possible statistics... It

:07:14. > :07:20.is not clear the figures are wrong? They are fairly recent figures and I

:07:21. > :07:23.have not seen analysis by other organisations. The Adam Smith

:07:24. > :07:28.Institute will probably have some question marks over it. Nobody

:07:29. > :07:31.should be surprised a Tory government is trying to make the

:07:32. > :07:38.state smaller... And the poor poorer. The system is propped up by

:07:39. > :07:41.better off people and so it will be those people who will be slightly

:07:42. > :07:49.less heavily taxed as you make the state smaller. Theresa May will have

:07:50. > :07:53.to stop just talking about the just about managing. And some of her

:07:54. > :07:58.other language and the role of the government and the state when she

:07:59. > :08:02.sounded quite positive... She sounded like a big government

:08:03. > :08:07.conservative not small government. In every set piece occasion, she

:08:08. > :08:15.says, it is time to look at the good the government can do. That is not

:08:16. > :08:18.what you heard from Mrs Thatcher. Tony Blair and Gordon Brown would

:08:19. > :08:23.not have dared to say it either even if they believed it. It raises a

:08:24. > :08:30.much bigger question which is, as well as whether this is a set of

:08:31. > :08:34.progressive measures, the Resolution Foundation constantly argued when

:08:35. > :08:37.George Osborne announced his budget measures as progressive when they

:08:38. > :08:41.were regressive when they checked out the figures, but also how this

:08:42. > :08:46.government was going to meet the demand for public services when it

:08:47. > :08:51.has ruled out virtually any tax rises that you would normally do

:08:52. > :08:56.now, including National Insurance. There are a whole range of nightmare

:08:57. > :09:00.issues on Philip Hammond's in-tray in relation to tax. The Resolution

:09:01. > :09:05.Foundation figures do not include the rise in the minimum wage which

:09:06. > :09:09.has just gone under way. They do not include the tax free childcare from

:09:10. > :09:14.the end of April, the extra 15 hours of free childcare from September.

:09:15. > :09:18.Even when you include these, it does not look like it would offset the

:09:19. > :09:23.losses of the poorest households. Doesn't that have to be a problem

:09:24. > :09:27.for Theresa May? It really is a problem especially when her

:09:28. > :09:32.narrative and indeed entire purpose in government is for that just about

:09:33. > :09:37.managing. What Mrs May still has which is exactly a problem they have

:09:38. > :09:40.at the budget and the Autumn Statement is that they are still

:09:41. > :09:47.saddled with George Osborne's massive ring fences on tax cuts and

:09:48. > :09:50.spending. They have to go through with the tax cut for the middle

:09:51. > :09:54.classes by pushing up the higher rate threshold which is absolutely

:09:55. > :09:58.going to do nothing for the just about managing. When they try to

:09:59. > :10:01.mitigate that, for example, in the Autumn Statement, Philip Hammond was

:10:02. > :10:06.told to come up with more money to ease the cuts in tax credits, came

:10:07. > :10:12.up with 350 million, an absolute... It is billions and billions

:10:13. > :10:16.involved. Marginal adjustment. A huge problem with the actual tax and

:10:17. > :10:20.benefit changes going on with what Mrs May as saying. The only way to

:10:21. > :10:24.fix it is coming up with more money to alleviate that. Where will you

:10:25. > :10:28.find it? Philip Hammond tried in the Budget with the National Insurance

:10:29. > :10:34.rises but it lasted six and a half days. I was told that it was one of

:10:35. > :10:39.the reasons why the Chancellor looked kindly on the idea of an

:10:40. > :10:45.early election because he wanted to get rid of what he regards as an

:10:46. > :10:49.albatross around his neck, the Tory manifesto 2015, no increase in

:10:50. > :10:54.income tax, no increase in VAT, no increase in National Insurance, fuel

:10:55. > :10:58.duty was not cut when fuel prices were falling so it is hardly going

:10:59. > :11:04.to rise now when they are rising again. This is why, I suggest, they

:11:05. > :11:08.end up in these incredibly complicated what we used to call

:11:09. > :11:13.stealth taxes as ways of trying to raise money and invariably a blow up

:11:14. > :11:18.in your face. Stealth taxes never end up being stealthy. It is part of

:11:19. > :11:24.the narrative that budget begins to fall apart within hours. You have to

:11:25. > :11:27.have sympathy, as Tom says, with Philip Hammond. No wonder he would

:11:28. > :11:32.like to be liberated. The early election will not happen. The best

:11:33. > :11:36.argument I have heard for an early election. The tax and spend about at

:11:37. > :11:41.the last election was a disaster partly because the Conservatives

:11:42. > :11:46.feared they would lose. Maybe they could be a bit more candid about the

:11:47. > :11:52.need to put up some taxes to pay for public services and it is very

:11:53. > :11:56.interesting what you picked up on Philip Hammond because he is

:11:57. > :12:03.trapped. So constrained about... You can also reopen the Ring fencing and

:12:04. > :12:09.spending and the obvious place to go is the triple lock, OAP spending.

:12:10. > :12:14.Another case for an election. He cannot undo the promise to that

:12:15. > :12:18.demographic. We will not get to 2020 without something breaking. The

:12:19. > :12:25.Prime Minister, the trade secretary and Mr Hammond, they are off to

:12:26. > :12:32.India, the Far East, talking up trade with these countries, I do not

:12:33. > :12:37.know if any of you are going? Sadly not. Will it produce dividends? The

:12:38. > :12:43.prime Minster is going somewhere too. No, it will not, the honest

:12:44. > :12:47.answer. No one will do a trade deal with us because we cannot do one

:12:48. > :12:50.because we are still in the EU and they need to know what our terms

:12:51. > :12:54.will be with the EU first before they can work out how they want to

:12:55. > :12:58.trade with us. This is vital preparatory work. Ministers always

:12:59. > :13:03.go somewhere in recess, it is what they do. We will not see anything in

:13:04. > :13:09.a hurry, we will not see anything for two years. They have to do it.

:13:10. > :13:14.Whatever side of the joint you are on, Brexit, remain, we need to get

:13:15. > :13:18.out there. -- the argument. We should have been doing this the day

:13:19. > :13:21.after the referendum result. It is now several months down the line and

:13:22. > :13:28.they need to step it up, not the opposite. You can make some informal

:13:29. > :13:32.talks, I guess. You can say, Britain is open for business. There is a

:13:33. > :13:37.symbolism to it. What a lot of energy sucked up into this.

:13:38. > :13:43.Parliament is not sitting so they might as well start talking. We have

:13:44. > :13:48.run out of energy and time. That is it for today. We are off for the

:13:49. > :13:52.Easter recess, back in two weeks' time. If it is Sunday, it is the

:13:53. > :14:21.Sunday Politics. Unless it is that used to recess! -- Easter recess.

:14:22. > :14:24.Marine Le Pen has her eyes on the French presidency.

:14:25. > :14:28.As she tries to distance herself from her party's controversial past,

:14:29. > :14:52.we follow the money and ask, "Who's funding her campaign?"

:14:53. > :14:56.I think I've died and gone to heaven. Saluti. Chin-chin.