27/10/2013 Sunday Politics Yorkshire and Lincolnshire


27/10/2013

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

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

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

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

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

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and ask Labour who's conning whom over energy.

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

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

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

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Foreign companies own everything from our energy companies to our

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railways. Does it matter who investment in buses not keeping

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pace? And with me, three journalists

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

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itself for massive storm winds, tweeting their political forecasts

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

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

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

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

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

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

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

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

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

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

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

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

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

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surprisingly, where there right areas on which we disagree over

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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ministers, proudly defend the record of unqualified teachers working in

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

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

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

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

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

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

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

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election that the manifesto curriculum in free schools should be

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

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

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

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

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

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

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

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

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

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that the teachers there are qualified. Someone who send their

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

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

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

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

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

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

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

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

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

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

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Clegg complained that the Prime Minister gave him only 30 minutes

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

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

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

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levies were under discussion in the ministerial group before Wednesday,

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

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

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

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

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

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

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

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

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

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

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clear that different parts of the government are running round waking

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

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

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of the Prime Minister making up policy literally at the dispatch

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

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

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

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about acknowledging there is something wrong with the way the

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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government estimates, apparently doubled the amount the government

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

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

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

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

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

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

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

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technologies yet to be developed. We should protect ourselves against

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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set the agenda. The coalition are squabbling among themselves,

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

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

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Miliband has made the weather on this.

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

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

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

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

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

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

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

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

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

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British Airports Authority, is owned by a Spanish company.

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

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

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

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

:20:54.:20:56.

first nuclear power plant in a generation, backed by Chinese

:20:57.:21:03.

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

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

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by the British government was effectively re-nationalised by the

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

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

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

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

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

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

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

:21:54.:22:00.

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

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relationship between foreign ownership and consumer prices. That

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

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businesses represented the future, businesses we are good at

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

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

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businesses here -- Monotise. Like so many businesses creating

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products and services and creating the shareholders. Should we allow

:22:41.:22:48.

hour essential services to be in foreign ownership? It was

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

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

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politicians in Scotland have no say, they were consultants.

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

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

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

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

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

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

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

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

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

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should be returned to public ownership. Nestor. It has

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

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

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

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

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

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

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energy company in France is reducing its nuclear capability in

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

:24:49.:24:52.

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

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

:24:58.:25:03.

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

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

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

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

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

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

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make decisions. Not just Grangemouth, businesses are making

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

:25:42.:25:48.

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

:25:49.:25:52.

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

:25:53.:25:57.

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

:25:58.:26:02.

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

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

:26:09.:26:14.

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

:26:15.:26:19.

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

:26:20.:26:23.

Mineworkers because they dared to stand up for people in their

:26:24.:26:29.

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

:26:30.:26:33.

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

:26:34.:26:40.

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

:26:41.:26:47.

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

:26:48.:26:52.

case, Julie Meyer, for entrepreneurs to come to this

:26:53.:26:57.

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

:26:58.:27:02.

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

:27:03.:27:10.

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

:27:11.:27:16.

principle than just energy. Something like broadband services,

:27:17.:27:20.

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

:27:21.:27:27.

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

:27:28.:27:32.

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

:27:33.:27:36.

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

:27:37.:27:44.

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

:27:45.:27:49.

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

:27:50.:27:54.

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

:27:55.:27:57.

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

:27:58.:28:03.

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

:28:04.:28:08.

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

:28:09.:28:13.

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

:28:14.:28:21.

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

:28:22.:28:28.

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

:28:29.:28:32.

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

:28:33.:28:39.

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

:28:40.:28:46.

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

:28:47.:28:50.

the business about phone-tapping and investigate the Prime

:28:51.:28:52.

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

:28:53.:29:08.

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

:29:09.:29:12.

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

:29:13.:29:22.

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

:29:23.:29:26.

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

:29:27.:29:33.

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

:29:34.:29:39.

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

:29:40.:29:51.

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

:29:52.:29:55.

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

:29:56.:30:00.

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

:30:01.:30:07.

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

:30:08.:30:15.

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

:30:16.:30:21.

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

:30:22.:30:26.

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

:30:27.:30:30.

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

:30:31.:30:35.

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

:30:36.:30:40.

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

:30:41.:30:47.

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

:30:48.:30:50.

summit. David Cameron's advises tummy it is

:30:51.:31:00.

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

:31:01.:31:08.

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

:31:09.:31:15.

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

:31:16.:31:20.

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

:31:21.:31:26.

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

:31:27.:31:29.

commissioner is appointed later next year. I think the detailed

:31:30.:31:35.

negotiations will start to happen bubbly after the UK general

:31:36.:31:39.

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

:31:40.:31:43.

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

:31:44.:31:51.

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

:31:52.:31:56.

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

:31:57.:32:00.

renegotiate our membership. Everyone here says his relationship with the

:32:01.:32:04.

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

:32:05.:32:09.

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

:32:10.:32:14.

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

:32:15.:32:20.

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

:32:21.:32:24.

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

:32:25.:32:30.

Former Deputy Prime Minister, Michael Heseltine. We are nine

:32:31.:32:33.

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

:32:34.:32:41.

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

:32:42.:32:47.

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

:32:48.:32:53.

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

:32:54.:33:04.

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

:33:05.:33:12.

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

:33:13.:33:17.

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

:33:18.:33:22.

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

:33:23.:33:28.

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

:33:29.:33:38.

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

:33:39.:33:42.

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

:33:43.:33:48.

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

:33:49.:33:52.

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

:33:53.:33:58.

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

:33:59.:34:07.

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

:34:08.:34:13.

sign of renegotiation, if he is able only to do what Wilson did in 1975,

:34:14.:34:19.

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

:34:20.:34:24.

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

:34:25.:34:29.

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

:34:30.:34:37.

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

:34:38.:34:44.

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

:34:45.:34:50.

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

:34:51.:34:55.

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

:34:56.:35:02.

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

:35:03.:35:12.

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

:35:13.:35:18.

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

:35:19.:35:23.

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

:35:24.:35:29.

works, which would be a significant argument within the referendum

:35:30.:35:33.

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

:35:34.:35:38.

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

:35:39.:35:44.

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

:35:45.:35:50.

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

:35:51.:35:58.

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

:35:59.:36:03.

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

:36:04.:36:09.

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

:36:10.:36:14.

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

:36:15.:36:21.

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

:36:22.:36:25.

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

:36:26.:36:32.

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

:36:33.:36:36.

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

:36:37.:36:42.

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

:36:43.:36:45.

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

:36:46.:36:51.

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

:36:52.:36:55.

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

:36:56.:37:05.

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

:37:06.:37:16.

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

:37:17.:37:22.

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

:37:23.:37:32.

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

:37:33.:37:40.

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

:37:41.:37:46.

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

:37:47.:37:50.

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

:37:51.:37:57.

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

:37:58.:38:01.

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

:38:02.:38:05.

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

:38:06.:38:12.

you get your Sunday lunch. Thanks for joining us.

:38:13.:38:17.

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

:38:18.:38:31.

You're watching the Sunday Politics for Yorkshire and Lincolnshire.

:38:32.:38:37.

Coming up today. Is it time to stop milking the motorist? We speak to

:38:38.:38:41.

businesses, market traders and even advocate who say that they are

:38:42.:38:44.

concerned about the growing cost of Sunday and late`night parking. And

:38:45.:38:51.

we will be delving into a row about privatised sexual health services

:38:52.:38:55.

run by none other than Richard Branson's Virgin group. Let's say

:38:56.:39:01.

hello to our guests. Fabian Hamilton is Labour MPs are Leeds north`east

:39:02.:39:04.

and Craig Whittaker is the Conservative MP for the Calder

:39:05.:39:11.

Valley. George Osborne came to Leeds on Friday to tell us that the

:39:12.:39:14.

economy has grown faster than at any time during the past few years. Our

:39:15.:39:18.

labour going to start running out of bullets to fire at the Government?

:39:19.:39:23.

We'll was wanted the economy to grow, it is just a shame that it has

:39:24.:39:28.

taken so long. It is good for everybody. The economy growing is

:39:29.:39:32.

good. GDP figures mean nothing if you cannot afford to pay your gas

:39:33.:39:38.

bill. That is true. But let us not forget we have been in such a mess

:39:39.:39:41.

for so long in this country that it is great to see some results coming

:39:42.:39:45.

through. We will chat more at the moment. `` in a moment. You may have

:39:46.:39:56.

travelled on one of their planes or trains, watched their TV or used

:39:57.:39:59.

their broadband. But did you now that part of Richard Branson's

:40:00.:40:02.

Virgin empire is responsible for running sexual health services in

:40:03.:40:05.

parts of our area? The awarding of the contract in Northern

:40:06.:40:07.

Lincolnshire has been controversial, with unions claiming that public

:40:08.:40:11.

health has been put at risk by a series of problems ` a claim denied

:40:12.:40:14.

by Virgin Care. Vicky Johnson has the story. Unsafe sex served up as

:40:15.:40:24.

entertainment on BBC Three. But most people agree that first time the

:40:25.:40:29.

enter our sexual health clinic it is more embarrassing than entertaining.

:40:30.:40:35.

In April, Virgin Care took over the service from the NHS across North

:40:36.:40:41.

Lincolnshire. They set up clinics in Scunthorpe and Grimsby at the

:40:42.:40:45.

transfer has not gone entirely smoothly according to this man, we

:40:46.:40:50.

have changed his voice to preserve his anonymity. The staff work on

:40:51.:40:55.

their opinion rather than your files. It is impossible. They do not

:40:56.:41:00.

get your readings back in a few went to the GP and he did not have the

:41:01.:41:03.

file, you would think there was something wrong with him, wouldn't

:41:04.:41:11.

you? Staff are not just embarrassed, they are worried that safety and

:41:12.:41:15.

quality are being compromised. According to vault sorbic from

:41:16.:41:24.

Unison. In both sides they have issue about Chlamydia screening.

:41:25.:41:26.

Chlamydia screening kits have not turned up. They have not turned up

:41:27.:41:32.

until late September. Programmes have not been up and running like

:41:33.:41:35.

they were previously, so there is a big issue for public seven `` safety

:41:36.:41:40.

in North and North East Lincolnshire. North Lincolnshire

:41:41.:41:45.

Council, now responsible for public health, admits that targets on

:41:46.:41:48.

Chlamydia screening have not yet been met, but a spokesperson said

:41:49.:41:53.

that the situation is being managed. Part of the problem, say the unions,

:41:54.:41:57.

is that the transfer of the service to private company coincided with

:41:58.:42:04.

the NHS reforms. The chaos that came out of the health and social care

:42:05.:42:09.

act has compromised patient care and the health of the communities in

:42:10.:42:14.

North and North East Lincolnshire. Nick Dakin, MP for Scunthorpe, says

:42:15.:42:17.

he is keeping a close eye on the situation. I have met with public

:42:18.:42:23.

health at North Lincolnshire Council and I have spoken to them again

:42:24.:42:26.

since and they have assured me that they are monitoring this contract

:42:27.:42:30.

closely and I am on their case. Separately, I am asking for a

:42:31.:42:35.

meeting with Virgin Care, so that they can update me with exactly what

:42:36.:42:39.

they are doing. I am sure that they can `` want to provide a good

:42:40.:42:43.

service. Part of my job is to ensure that they do. Staff and patients say

:42:44.:42:48.

that they are struggling to cope with daily frustrations. It is hard

:42:49.:42:53.

not to lose your temper and keep calm when you go in there and this

:42:54.:42:56.

and that has not happened and you can get the test three times before

:42:57.:43:05.

getting results back. Union leaders claim any problems with sexual

:43:06.:43:09.

health services could put local people at unnecessary risk. They are

:43:10.:43:12.

hoping to meet soon with managers from Virgin Care to discuss their

:43:13.:43:27.

concerns. Well, Virgin Care sent us a statement in which they claimed

:43:28.:43:30.

town centre premises were an improvement on previous provision,

:43:31.:43:31.

and that statement said: Craig Whittaker, these concerns were

:43:32.:43:43.

being raised about sexual health services in your constituency, would

:43:44.:43:47.

you want answers from Virgin Care? I would do exactly what Nick Bacon is

:43:48.:43:54.

doing, asking the relevant parties, commissioners and providers, for the

:43:55.:43:57.

relevant answers to the questions and making sure that they were being

:43:58.:44:00.

monitored properly. Let us not forget. This seems like an

:44:01.:44:06.

ideological battle between unions and a private provider. You got to

:44:07.:44:11.

take that into account as well. The unions say that this is example why

:44:12.:44:16.

privatised health care is not working in some areas. I can give

:44:17.:44:21.

you some examples of where it is working extremely well. GPs are

:44:22.:44:27.

self`employed people. Let us not just label a private or NHS. There

:44:28.:44:31.

was a balance and it is about quality provision for the people

:44:32.:44:37.

that are giving the service. Are the unions right to highlight this or is

:44:38.:44:43.

it just part of either logical conflict, because the unions do not

:44:44.:44:49.

want any privatisation? I don't understand why Virgin Care say that

:44:50.:44:53.

it is a better service. It is clearly not working in Scunthorpe

:44:54.:44:56.

and Nick Dakin is right to take it up the way that he has. This is not

:44:57.:45:01.

about ideology, but about why a private company that makes profits

:45:02.:45:05.

can do a better job than the public sector, where it is being done by

:45:06.:45:08.

the public good, and I do not believe that Virgin are doing this

:45:09.:45:12.

for the public good, but for their shareholding. People are suspicious

:45:13.:45:19.

about privatised health care. Just because they are a privatised

:45:20.:45:22.

company does not mean they will be inferior to the NHS. But they have

:45:23.:45:29.

to make profits. Let us talk about mid Staffordshire, about Morecambe,

:45:30.:45:35.

about the issues that we have had with the NHS, and these are not

:45:36.:45:41.

private providers. It was a failure of management. It was NHS management

:45:42.:45:50.

and it has been a failure. Why does a private provider make a better

:45:51.:45:55.

service at a lower cost when it has to make a profit? We see them

:45:56.:46:00.

providing a much better service in some instances than our own NHS and

:46:01.:46:05.

we have seen that, and the prime example is mid Staffordshire and

:46:06.:46:09.

what is happening in Morecambe. The people know that they are getting a

:46:10.:46:12.

privatised health company delivering their care? Some of the Virgin

:46:13.:46:16.

clinics, there was no branding. It just says, NHS. Should people be

:46:17.:46:23.

upfront, and should the just be upfront and above board if they are

:46:24.:46:29.

using private companies? All we want is that people who use NHS services,

:46:30.:46:33.

that we get a free medical service that is of great quality, when we

:46:34.:46:39.

want it and where we need it. And providing that is done every time,

:46:40.:46:42.

doesn't really matter it is a private provider or estate

:46:43.:46:47.

provider? Many of your constituents will have used either clinics and

:46:48.:46:51.

hospitals and been happy with it. If the service is good and it is at a

:46:52.:46:56.

lower cost, and they don't understand how it can be, then that

:46:57.:47:01.

is good, but when you realise that you are complaining to a private

:47:02.:47:03.

company and go through that to the NHS management responsible for

:47:04.:47:09.

commissioning it. Should there be more checks and balances? If it is

:47:10.:47:12.

found that private companies are not delivering a certain level of care,

:47:13.:47:16.

should they be stripped of that contract? Not just the private

:47:17.:47:21.

companies but for NHS providers as well. Any contract that is tendered

:47:22.:47:25.

out needs to have checks and balances for whoever is the service

:47:26.:47:30.

does either full top `` who ever is the service provider. Now when

:47:31.:47:39.

you've finished watching the Sunday Politics, you might be heading out

:47:40.:47:43.

to do some shopping. In many towns and cities parking is free on a

:47:44.:47:47.

Sunday, but an increasing number of councils are charging drivers to

:47:48.:47:50.

park on weekends and in the evening. It's causing a big row in Leeds,

:47:51.:47:53.

from where Joe Inwood reports. What do a music venue, a market stall, a

:47:54.:47:56.

restaurant and the church all have in common? They all say that

:47:57.:48:01.

charging for Sunday and late`night parking would devastate them. I

:48:02.:48:10.

think it is terrible. It has not been thought through. The effect on

:48:11.:48:13.

local businesses is going to be very bad. They have created a fantastic

:48:14.:48:20.

shopping destination in this city and now they are taking it away

:48:21.:48:24.

because it is easy to think, I will go elsewhere, where it is easy to

:48:25.:48:29.

park. Psychologically it is a big negative that people have to spend

:48:30.:48:35.

money on parking that they could spend from their pockets in the

:48:36.:48:40.

venues. People will come and make a day of it, come to church, spend

:48:41.:48:45.

some time in the shopping centre. That is the modern Sunday. And we

:48:46.:48:49.

think that less people will come on back sort of basis. What are the

:48:50.:48:55.

changes they are concerned about? It is just after six o'clock, you can

:48:56.:48:59.

see cars looking for somewhere to stop. If they find a space,

:49:00.:49:04.

currently, it is free. Under the new plans this page ?2 for the rest of

:49:05.:49:09.

the evenings. On Sunday it is ?1, ?4 for the whole day. In total it

:49:10.:49:13.

should make the City Council ?400,000 per year. This comes in the

:49:14.:49:18.

same week it was announced that they make up to ?7 million a year profit

:49:19.:49:22.

from parking. That is more than any other council in the North of

:49:23.:49:27.

England. Despite repeated requests, nobody from the council has been

:49:28.:49:31.

available for interview. In a statement, they said that parking

:49:32.:49:34.

charges in Leeds are comparable with other major cities, but considerably

:49:35.:49:39.

cheaper than the private alternatives and that they have not

:49:40.:49:42.

risen in four years. They did not address the concerns of local

:49:43.:49:45.

businesses. They did not explain why a city that already makes ?7 million

:49:46.:49:49.

in profit should increase that, and they did not explain why they have

:49:50.:49:54.

ignored the results of their own consultation. I would say to the

:49:55.:50:00.

council, listen to your community, to your residence, and think about

:50:01.:50:04.

what is right for the residents. It seems clear to me that the people of

:50:05.:50:07.

Leeds are saying that they do not want this. It damages businesses. It

:50:08.:50:11.

damages people wanting to go to church, not just businesses, and

:50:12.:50:15.

that is a horrendous position. They should be wanting to see that town

:50:16.:50:20.

flourishing and vibrant and the best way to do that is to make parking

:50:21.:50:27.

cheap. In Swindon they took a deliberately relaxed approach,

:50:28.:50:30.

cutting charges and giving ten minutes leeway, and they are seeing

:50:31.:50:35.

the benefits. We have seen an increase in footfall in that time,

:50:36.:50:38.

one of the few town centres in the south of England that has shown

:50:39.:50:43.

growth in visits to the town centre. Leeds is undoubtedly a private ``

:50:44.:50:51.

thriving place. It has many signs of a city on the up. With the council

:50:52.:50:56.

taking some credit for that success, but the concern from the town centre

:50:57.:50:59.

is that these changes could put much of that in jeopardy. Let us pick up

:51:00.:51:07.

on that point. Do you want to defend Labour`1 lead City Council in

:51:08.:51:13.

introducing these parking charges, is it going to stop the economic

:51:14.:51:19.

recovery? I don't think it will, but I do not blame the council but doing

:51:20.:51:23.

what they are doing. Their budgets have been slashed hugely by central

:51:24.:51:30.

government. If local government had more financial autonomy it could

:51:31.:51:34.

draw a better balance between parking charges and business rates

:51:35.:51:38.

and other sources of income, maybe local income taxes if they were

:51:39.:51:40.

completely devolved to cities like Leeds, but the issue is that they

:51:41.:51:44.

have got to find a way of producing more revenue now that the essential

:51:45.:51:48.

revenue that they have has been slashed by central government. This

:51:49.:51:56.

is an absolute copout. It lacks vision. It lacks leadership. It

:51:57.:52:01.

lacks a range of things. You have got five local authorities in West

:52:02.:52:07.

Yorkshire, five HR departments, five accountancy departments, all

:52:08.:52:11.

replicated across certain things. If you want to save money let us look

:52:12.:52:18.

at those areas. They have talked about it and talked about it but

:52:19.:52:22.

they have not done it. Instead what they do is they put more and more

:52:23.:52:25.

money on the motorist and suddenly, places like Leeds will lose out with

:52:26.:52:29.

high parking charges because people will go elsewhere. Do you think that

:52:30.:52:36.

parking should be free? I think that parking charges for retailers is a

:52:37.:52:41.

good thing because it increases turnover and football increases. The

:52:42.:52:44.

evidence shows that when you have car parking charges, it increases

:52:45.:52:52.

footfall. ?2 a day is not a lot of money. I have just paid outside for

:52:53.:53:01.

Mike minutes parking, 40p. Just outside here in the BBC. `` for 90

:53:02.:53:12.

minutes parking. For 90 minutes parking at costs ?4 just outside the

:53:13.:53:15.

building so if you put another ?1 on top of that it is an incredibly

:53:16.:53:22.

expensive 90 minutes. We are talking about Sundays and evenings, ?2 for

:53:23.:53:27.

the entire day. That is pretty good value. But will they go to other

:53:28.:53:33.

centres, out`of`town retail parks, which are free? I doubt that, if you

:53:34.:53:41.

put it up by ?2 on a Sunday. We remember that Tony Blair wanted a

:53:42.:53:46.

cafe culture. How is charging motorists going to encourage people

:53:47.:53:48.

to come into town centres after dark? It is not going to encourage

:53:49.:53:54.

more people but it will not put them off, either. If you charge ?7 a day,

:53:55.:53:59.

it will, but up to ?2 a day on a Saturday evening Sunday, I doubt

:54:00.:54:02.

that that will put the ball. It is cheaper than the boss. In the

:54:03.:54:07.

meantime you can shop on the Internet and not be any parking

:54:08.:54:08.

charges. `` it will put people off. Motorists increasingly see

:54:09.:54:21.

themselves as a cash cow, from councils and from the national

:54:22.:54:26.

government as well. Who is going to help the hard`pressed motorists? If

:54:27.:54:32.

you go into Central London there was a ?10 congestion charge per day.

:54:33.:54:35.

That has not reduced congestion in Central London. I do not find it to

:54:36.:54:42.

be any less. We have the same issue in Calderdale. We have a Labour run

:54:43.:54:47.

council that is deciding to put double yellow lines to try and help

:54:48.:54:56.

when the M6 G2 motorway closes. They have halved the parking for

:54:57.:54:59.

residents and what they have then gone and done is put car parking

:55:00.:55:02.

charges on the only free car park in the village, not a town or city. It

:55:03.:55:12.

just shows what a nonsense this is. You say that it is the Labour run

:55:13.:55:17.

council. It would never have happened if I was on the council.

:55:18.:55:21.

Let us look at some of the Conservative run councils. Councils

:55:22.:55:27.

are being squeezed by the `` central government, whatever party runs them

:55:28.:55:31.

and they are desperate for revenue. It is a copout where they can save

:55:32.:55:39.

more money in other areas. The procurement issues we have within

:55:40.:55:43.

the NHS and local councils are horrendous and until we address

:55:44.:55:45.

those key, fundamental issues and save money... I know from talking to

:55:46.:55:55.

the leader of Leeds City Council that he has been talking to other

:55:56.:55:59.

torture councils to make savings by having central purchasing and

:56:00.:56:02.

functions. They are talking and negotiating and doing. This was six

:56:03.:56:09.

months, nine months ago. They had a clear plan and I know that they are

:56:10.:56:12.

putting that into operation to save the taxpayer money. They have to do

:56:13.:56:21.

it. Let's get some more of the week's political news now. Len

:56:22.:56:24.

Tingle has our round`up in 60 seconds. Has this week seen the end

:56:25.:56:29.

of George Galloway's Bradford Spring? Less than 18 months after

:56:30.:56:34.

respect 15 seats on Bradford Council it has all ended in tears, with all

:56:35.:56:38.

five angrily quitting the party claiming lack of consultation on

:56:39.:56:41.

policy. They will now sit as independent councillors. It is four

:56:42.:56:45.

years since the last private operator of trains on the East Coast

:56:46.:56:48.

line could London said it could not make a profit but it has gone under

:56:49.:56:52.

state ownership. The new Labour shadow transport secretary and wait

:56:53.:56:56.

for Mary Creagh is asking why the Government wants to sell it off

:56:57.:56:59.

again. Franchising is not delivered on the East Coast mainline. This

:57:00.:57:05.

week David come Cameron said he has found the green shoots of recovery

:57:06.:57:09.

in the world were largest online fashion retailer based at

:57:10.:57:17.

Grimethorpe. We see this employing 2300 people and a few years ago it

:57:18.:57:21.

employed no one at all. But a Labour MP said that there was a long way to

:57:22.:57:25.

go. We have a long way to go in Barnsley.

:57:26.:57:29.

Why privatise these Coast Main line if it is making money for the

:57:30.:57:35.

Government? Have you been on these Coast lately? This service is

:57:36.:57:41.

appalling, the trains are filthy. I had to stand for nearly 60% of the

:57:42.:57:46.

journey, having paid ?134 for my one`way ticket. That is just

:57:47.:57:51.

appalling. That is why they are making money because they are

:57:52.:57:55.

offering a poor level of service. Some of the privatise train

:57:56.:58:00.

operating companies are not much better. I paid ?35 for a first`class

:58:01.:58:06.

ticket in advance, and it was comfortable and clean and well

:58:07.:58:10.

organised. Well, it would be in first class. The service quality,

:58:11.:58:20.

they are chalk and cheese. I'm sorry, I have never had a bad

:58:21.:58:23.

service from the East Coast mainline. I do not recognise the

:58:24.:58:29.

trend that they are talking about. Come up with me in standard class. I

:58:30.:58:34.

have sat in standard as well. It is sometimes quite crowded. It is more

:58:35.:58:38.

than crowded. I could not get a seat. I paid in advance and I saved

:58:39.:58:43.

a huge amount of taxpayers money. Mary Creagh says that she is open to

:58:44.:58:48.

the idea of the full renationalisation of the railways.

:58:49.:58:55.

It is ?200 million a year from East Coast, I directly operated railway

:58:56.:59:00.

going back to the Treasury. Some of that could be used for investment.

:59:01.:59:05.

Why are we giving that money to the private sector? It is going straight

:59:06.:59:10.

into the Treasury coffers. It is on `` unbelievable that we are saying

:59:11.:59:12.

that shareholders need to get that cash. Bring back British rail. You

:59:13.:59:19.

would not be complaining then, would you? I would at least have someone

:59:20.:59:26.

to complain to! George Galloway. We heard about the Respect councillors

:59:27.:59:35.

and Brad. Has the Bradford Spring turned into a winter of discontent?

:59:36.:59:45.

It was never going to last. He is a populist politician. He just picks

:59:46.:59:49.

up an issue and runs with it. The tragedy is for the people of

:59:50.:59:54.

Radford. The people there need a good MP was interested in them and

:59:55.:59:57.

the sad thing for me is that George Galloway has not done the job he

:59:58.:00:01.

promised to do for the people of Bradford when he won that

:00:02.:00:06.

by`election so convincingly. He's not here to defend himself, as he

:00:07.:00:16.

has done, bustly, on many things. He's one of those rare breeds of

:00:17.:00:19.

politicians to reach passes of the electorate that others do not. You

:00:20.:00:23.

cannot make promises and not all of them. I am sad for people in one of

:00:24.:00:30.

the poorest parts that are not getting the service that they

:00:31.:00:34.

deserve and badly need. Would you like him back in the Labour Party?

:00:35.:00:37.

That is not a decision for me to make. Would he make a good mayor of

:00:38.:00:46.

London? He has got that Boris Johnson style independence about

:00:47.:00:54.

them. He is not a patch on Boris. It sounds like we are seeing the start

:00:55.:00:59.

of electioneering. Yes, we are. You're not going to deny that?

:01:00.:01:04.

Absolutely not. If you're a politician you should be campaigning

:01:05.:01:07.

and electioneering all the time because you never take your election

:01:08.:01:12.

for granted. Well, don't peak too soon, gentlemen. Thank you both. You

:01:13.:01:16.

have been watching the Sunday Politics for Yorkshire and

:01:17.:01:19.

Lincolnshire. Now, back to Andrew Neil in London.

:01:20.:01:20.

free school area for into that category. Thank you.

:01:21.:01:32.

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

:01:33.:01:32.

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

:01:33.:01:36.

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

:01:37.:01:47.

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

:01:48.:02:00.

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

:02:01.:02:04.

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

:02:05.:02:09.

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

:02:10.:02:14.

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

:02:15.:02:19.

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

:02:20.:02:20.

would be a bit senior Labour person said to me it

:02:21.:02:22.

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

:02:23.:02:28.

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

:02:29.:02:32.

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

:02:33.:02:39.

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

:02:40.:02:43.

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

:02:44.:02:50.

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

:02:51.:02:58.

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

:02:59.:03:02.

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

:03:03.:03:08.

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

:03:09.:03:14.

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

:03:15.:03:19.

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

:03:20.:03:26.

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

:03:27.:03:31.

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

:03:32.:03:38.

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

:03:39.:03:43.

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

:03:44.:03:48.

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

:03:49.:03:53.

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

:03:54.:03:57.

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

:03:58.:04:01.

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

:04:02.:04:06.

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

:04:07.:04:28.

there was a difference between cancelling something that already

:04:29.:04:30.

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

:04:31.:04:33.

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

:04:34.:04:36.

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

:04:37.:04:39.

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

:04:40.:04:41.

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

:04:42.:04:44.

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

:04:45.:04:48.

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

:04:49.:04:53.

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

:04:54.:04:59.

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

:05:00.:05:03.

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

:05:04.:05:09.

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

:05:10.:05:15.

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

:05:16.:05:23.

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

:05:24.:05:27.

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

:05:28.:05:33.

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

:05:34.:05:38.

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

:05:39.:05:42.

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

:05:43.:05:46.

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

:05:47.:05:50.

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

:05:51.:05:58.

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

:05:59.:06:02.

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

:06:03.:06:11.

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

:06:12.:06:18.

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

:06:19.:06:24.

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

:06:25.:06:27.

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

:06:28.:06:33.

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

:06:34.:06:39.

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

:06:40.:06:46.

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

:06:47.:06:51.

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

:06:52.:06:57.

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

:06:58.:07:02.

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

:07:03.:07:06.

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

:07:07.:07:10.

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

:07:11.:07:44.

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

:07:45.:07:50.

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

:07:51.:07:59.

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

:08:00.:08:03.

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

:08:04.:08:15.

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

:08:16.:08:20.

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

:08:21.:08:27.

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

:08:28.:08:31.

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

:08:32.:08:36.

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

:08:37.:08:43.

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

:08:44.:08:48.

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

:08:49.:08:52.

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

:08:53.:08:57.

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

:08:58.:09:06.

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

:09:07.:09:09.

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

:09:10.:09:12.

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

:09:13.:09:17.

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

:09:18.:09:22.

that the Conservatives want to get the debate back to the

:09:23.:09:26.

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

:09:27.:09:33.

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

:09:34.:09:38.

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

:09:39.:09:45.

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

:09:46.:09:49.

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

:09:50.:09:56.

debate to living standards. Some economists are now privately

:09:57.:10:00.

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

:10:01.:10:05.

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

:10:06.:10:07.

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

:10:08.:10:14.

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

:10:15.:10:19.

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

:10:20.:10:25.

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

:10:26.:10:29.

That macro economic story matters more than the issue of living

:10:30.:10:35.

standards. The interesting thing about the recovery is it confounds

:10:36.:10:38.

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

:10:39.:10:44.

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

:10:45.:10:51.

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

:10:52.:10:57.

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

:10:58.:11:00.

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

:11:01.:11:05.

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

:11:06.:11:10.

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

:11:11.:11:15.

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

:11:16.:11:23.

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

:11:24.:11:27.

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

:11:28.:11:34.

economic recovery continues, the coalition will be stronger. But

:11:35.:11:43.

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

:11:44.:11:47.

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

:11:48.:11:52.

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

:11:53.:11:57.

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

:11:58.:12:00.

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

:12:01.:12:05.

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

:12:06.:12:12.

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

:12:13.:12:16.

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

:12:17.:12:21.

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

:12:22.:12:25.

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

:12:26.:12:33.

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

:12:34.:12:38.

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

:12:39.:12:43.

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

:12:44.:12:47.

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

:12:48.:12:52.

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

:12:53.:12:57.

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

:12:58.:13:03.

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

:13:04.:13:07.

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

:13:08.:13:11.

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

:13:12.:13:17.

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

:13:18.:13:21.

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

:13:22.:13:25.

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

:13:26.:13:30.

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

:13:31.:13:37.

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

:13:38.:13:44.

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

:13:45.:13:51.

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