01/12/2013 Sunday Politics Yorkshire and Lincolnshire


01/12/2013

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Morning, folks. Welcome to the Sunday Politics. George Osborne

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announces a ?50 cut to annual household energy bills. We'll talk

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to Lib Dem president Tim Farron ahead of the Chancellor's mini

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budget this week. Net immigration is up for the first

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time in two years. Labour and the Tories say they want to bring it

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down, but how? Shadow Home Secretary Yvette Cooper joins us for the

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Sunday Interview. The harder you shake the pack, the easier it will

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be for some cornflakes to get to the top. The Mayor of London says

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inequality and greed are essential to spur economic activity.

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On the Sunday Politics in Yorkshire and Lincolnshire, as the Chancellor

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promises to cut green taxes on our energy bills, some firms claim

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deliver? And with me throughout today's

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programme, well, we've shaken the packet and look who's risen to the

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top. Or did we open it at the bottom? Helen Lewis, Janan Ganesh

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and Sam Coates. All three will be tweeting throughout the programme

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using the hashtag #bbcsp. So, after weeks in which Ed Miliband's promise

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to freeze energy prices has set the Westminster agenda, the Coalition

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Government is finally coming up with its answer. This morning the

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Chancellor George Osborne explained how he plans to cut household energy

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bills by an average of fifty quid. What we're going to do is roll back

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the levees that are placed by government on people's electricity

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bills. This will mean that for the average bill payer, they will have

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?50 of those electricity and gas bills. That will help families. We

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are doing it in the way that government can do it. We are

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controlling the cost that families incurred because of government

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policies. We are doing it in a way that will not damage the environment

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or reduce our commitment to dealing with climate change. We will not

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produce commit men to helping low-income families with the cost of

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living. Janan, we are finally seeing the coalition begin to play its hand

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in response to the Ed Miliband freeze? They have been trying to

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respond for almost ten weeks and older responses have been quite

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fiddly. We are going to take a bit of tax year, put it onto general

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taxation, have a conversation with the energy companies, engineered a

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rebate of some kind, this is not very vivid. The advantage of the

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idea that they have announced overnight is that it is clear and it

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has a nice round figure attached to it, ?50. The chief of staff of

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President Obama, he said, if you are explaining, you're losing. The

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genius of this idea is that it does not require explanation. He would

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not drawn this morning on what agreement he had with the energy

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companies, and whether this would fall through to the bottom of the

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bill, but the way he spoke, saying, I am not going to pre-empt what the

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energy companies say, that suggests he has something up his sleeve. Yes,

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I thought so. The energy companies have made this so badly for so long.

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It would be awful if he announced this and the energy companies said,

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we are going to keep this money for ourselves. I do not think he is that

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stupid. The energy companies have an incentive to go along with this

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don't they? My worry is that I am not sure how much it will be within

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the opinion polls. I think people might expect this now, it is not a

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new thing, it is not an exciting thing. Say in the markets, they may

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have priced the ten already. If by Thursday of this week, he is able to

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say, I have a ?50 cut coming to your bill. The energy companies have

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guaranteed that this will fall through onto your energy bill, and

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they have indicated to me that they themselves will not put up energy

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prices through 2014, has he shot the Ed Miliband Fox? I think he has a

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couple of challenges. It is still very hard. This is an answer for the

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next 12 months but did is no chance announced that Labour will stop

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saying they are going to freeze prices in the next Parliament. He

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will say, I have not just frozen them, I have done that as well and I

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have cut them. When people look at their energy bills, they are going

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up by more than ?50. This is a reduction in the amount that they

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are going up overall. Year on 0 will be for George Osborne. He will

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have to come up with something this time next year. The detail in the

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Sunday papers reveals that George Osborne is trying to get the energy

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companies to put on bills that 50 has been knocked off your bill

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because of a reduction by the government. He is trying to get the

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energy companies to do his political bidding for him. It will be

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interesting to see if they go along with that, because then we will know

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how cross the arm with Ed Miliband. Let's get another perspective.

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Joining me now from Kendal in the Lake District is the president of

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the Liberal Democrats, Tim Farron. Welcome to the Sunday Politics. Good

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morning. Let me ask you this, the coalition is rowing back on green

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taxes, I do comfortable with that or is it something else you will rebel

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against? I am very comfortable with the fact we are protecting for the

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money is going. I am open to where the money comes from. The notion

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that we should stop insulating the homes of elderly people or stop

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investing in British manufacturing in terms of green industry, that is

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something that I resolutely oppose, but I am pleased that the funding

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will be made available for all that. You cannot ignore the fact that for

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a whole range of reasons, mostly down to the actions of the energy

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companies, you have prices that are shooting up and affecting lots of

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people, making life hard. You cannot ignore that. If we fund the

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installation of homes for older people and others, if we protect

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British manufacturing jobs, and raise the money through general

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taxation, I am comfortable with that. It is not clear that is going

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to happen. It looks like the eco-scheme, whereby the energy

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companies pay for the installation of those on below-average incomes,

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they will spin that out over four years, not two years, and one

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estimate is that that will cost 10,000 jobs. You're always boasting

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about your commitment to green jobs, how do square that? I do not believe

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that. The roll-out will be longer. The number of houses reached will be

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greater and that is a good thing. My take is that it will not affect the

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number of jobs. People talk about green levies. There has been

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disparaging language about that sort of thing. There are 2 million people

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in this country in the lowest income families and they get ?230 off their

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energy bills because of what isn't -- because of what is disparaging

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the refer to as green stuff, shall we call it. There will be more

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properties covered. We both know that your party is being pushed into

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this by the Tories. You would not be doing this off your own bad. You are

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in coalition with people who have jettisoned their green Prudential

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is? -- credentials. You have made my point quite well. David Cameron s

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panicked response to this over the last few months was to ditch all the

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green stuff. It has been a job to make sure that we hold him to his

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pledges and the green cord of this government. That is why we are not

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scrapping the investment, we are making sure it is funded from

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general taxation. I am talking to you from Kendal. Lots of people

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struggle to pay their energy bills. But all these things pale into

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insignificance compared to the threat of climate change and we must

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hold the Prime Minister to account on this issue. Argue reconciled to

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the idea that as long as you're in coalition with the Tories you will

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never get a mansion tax? I am not reconciled to it. We are trying to

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give off other tax cut to the lowest income people. What about the

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mansion tax? That would be potentially paid for by another view

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source of finance. That would be that the wealthy... We know that is

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what you want, but you're not going to get that? We will keep fighting

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for it. It is extremely important. We can show where we will get the

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money from. I know that is the adamant. That is not what I asked

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you. Ed Balls and Labour run in favour of a mansion tax, have you

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talked to them about it? The honest answer is I have not. It is

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interesting that they have come round to supporting our policy

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having rejected it in power. So if Labour was the largest party in

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parliament but not in power, you would have no problem agreeing with

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a mansion tax as part of the deal? If the arithmetic falls in that way

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and that is the will of the British people, fear taxes on those who are

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wealthiest, stuff that is fear, which includes wealth taxes, in

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order to fund more reductions for those people on lowest incomes, that

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is the sort of thing that we might reach agreement on. You voted with

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Labour on the spare room subsidy. Again, that would be job done in any

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future coalition talks with Labour, correct? I take the view that the

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spare room subsidy, whilst entirely fail in principle, in practice it

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has caused immense hardship. I want to see that changed. There are many

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people in government to share my view on that. So does Labour. The

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problem was largely caused Labour because they oversaw an increase in

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housing costs both 3.5 times while they were in power. The government

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was forced into a position to tidy up an appalling mess that Labour

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left. You voted with Labour against it, and also, you want... No, I

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voted with the party conference Let's not dance on the head of the

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ten. Maybe they voted with me. - on the head of a pin. You are also in

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favour of a 50% top rate of income tax, so you and Labour are that one

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there as well? No, I take the view that the top rate of income tax is a

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fluid thing. All taxation levels are temporary. Nick Clegg said that when

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the 50p rate came down to 45, that was a rather foolish price tag

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George Osborne asked for in return for as increasing the threshold and

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letting several million people out of paying income tax at the bottom.

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So you agree with Labour? In favour of rising the tax to 50p. I take the

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view that we should keep our minds open on that. It is not the income

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tax level that bothers me, it is whether the wealthy pay their fresh

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air. If that can be done through other taxes, then that is something

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that I am happy with. -- their fair share. Given your position on the

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top rate of tax, on the spare room subsidy, how does the prospect of

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another five years of coalition with the Tories strike you? The answer

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is, you react with whatever you have about you to what the electorate

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hand you. Whatever happens after the next election, you have got to

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respect the will of the people. Yes, but how do you feel about it? We

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know about this, I am asking for your feeling. Does your heart left

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or does your heart fall at the prospect of another five years with

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the Tories? My heart would always follow the prospect of anything

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other than a majority of Liberal Democrat government. Your heart must

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be permanently in your shoes then. Something like that, but when all is

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said and done, we accept the will of the electorate. When you stand for

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election, you have got to put up with what the electorate say. I have

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not found coalition as difficult as you might suggest. It is about

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people who have to disagree and agree to differ. You work with

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people in your daily life that you disagree with. It is what grown ups

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do. A lot of people in your party think that your positioning yourself

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to be the left-wing candidate in a post-Nick Clegg leadership contest.

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They think it is blatant manoeuvring. One senior figure says,

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this is about you. Which bit of the sanctimonious, treacherous little

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man is there not to like? What can I see in response to that. My job is

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to promote the Liberal Democrats. I have to do my best to consider what

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I'd defend to be right. By and large, my position as an MP in the

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Lake District, but also as the president of the party, is to

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reflect the will of people outside the Westminster village. That is the

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important thing to do. Thank you for joining us. David Cameron has said

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he wants to get it down to the tens of thousands, Ed Miliband has

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admitted New Labour "got it wrong", and Nick Clegg wants to be

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"zero-tolerant towards abuse". Yes, immigration is back on the political

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agenda, with figures released earlier this week showing that net

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migration is on the rise for the first time in two years. And that's

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not the only reason politicians are talking about it again.

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The issue of immigration has come into sharp focus because of concerns

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about the number of remaining ins and Bulgarians that can come to the

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UK next year. EU citizenship grants the right to free movement within

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the EU. But when Bulgaria and Romania joined in 2007, the

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government took up its right to apply temporary restrictions on

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movement. They must be lifted apply temporary restrictions on

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end of this year. According to the 2011 census, about one eyed 1

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million of the population in England and Wales is made up of people from

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countries who joined the EU in 004. The government has played down

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expectations that the skill of migration could be repeated. This

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week David Cameron announced new restrictions on the ability of EU

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migrants to claim benefits. That was two, send a message. That prompted

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criticism is that the UK risks being seen as a nasty country. Yvette

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Cooper joins me now for the Sunday interview. Welcome to the Sunday

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Politics, Yvette Cooper. You criticised the coalition for not

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acting sooner on immigration from Romania and Bulgaria but the

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timetable for the unrestricted arrival in January was agreed under

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Labour many years ago, and given the battle that you had with the Polish

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and the Hungarians, what preparations did you make in power?

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We think that we should learn from some of the things that happened

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with migration. It would have been better to have transitional controls

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in place and look at the impact of what happened. But what preparations

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did you make in power? We set out a series of measures that the

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Government still had time to bring in. It is important that this should

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be a calm and measured debate. There was time to bring in measures around

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benefit restrictions, for example, and looking at the impact on the

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labour market, to make sure you do not have exploitation of cheap

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migrant Labour which is bad for everyone. I know that but I have

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asked you before and I am asking again, what did you do? We got

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things wrong in Government. I understand that I am not arguing.

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You are criticising them not preparing, a legitimate criticism,

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but what did you do in power? Well, I did think we did enough. Did you

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do anything? We signed the agency workers directive but too slowly. We

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needed measures like that. We did support things like the social

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chapter and the minimum wage, but I have said before that we did not do

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enough and that is why we recommended the measures in March. I

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understand that is what you did in opposition and I take that. I put

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the general point to you that given your failure to introduce controls

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on the countries that joined in 2004, alone among the major EU

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economies we did that, should we not keep an embarrassed silence on these

:19:37.:19:41.

matters? You have no credibility. I think you have got to talk about

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immigration. One of the things we did not do in Government was

:19:45.:19:47.

discussed immigration and the concerns people have and the

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long-term benefits that we know have come from people who have come to

:19:56.:19:57.

Britain over many generations contributing to Britain and having a

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big impact. I think we recognise that there are things that we did

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wrong, but it would be irresponsible for us not to join the debate and

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suggest sensible, practical measures that you can introduce now to

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address the concerns that people have, but also make sure that the

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system is fair and managed. Immigration is important to Britain

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but it does have to be controlled and managed in the right way. Let's

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remind ourselves of your record on immigration. The chart you did not

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consult when in power. This is total net migration per year under Labour.

:20:30.:20:34.

2.2 million of net rise in migration, more than the population

:20:35.:20:40.

of Birmingham, you proud of that? -- twice the population. Are you proud

:20:41.:20:48.

of that or apologising for it? We set the pace of immigration was too

:20:49.:20:52.

fat and the level was too high and it is right to bring migration down.

:20:53.:20:58.

So you think that was wrong? Overruled have been huge benefits

:20:59.:21:03.

from people that have come to Britain and built our biggest

:21:04.:21:09.

businesses. -- overall. They have become Olympic medal winners. But

:21:10.:21:13.

because the pace was too fast, that has had an impact. That was because

:21:14.:21:17.

of the lack of transitional controls from Eastern Europe and it is why we

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should learn from that and have sensible measures in place now, as

:21:22.:21:25.

part of what has got to be a calm debate. These are net migration

:21:26.:21:31.

figures. They don't often show the full figure. These are the

:21:32.:21:36.

immigration figures coming in. What that chart shows is that in terms of

:21:37.:21:39.

the gross number coming into this country, from the year 2000, it was

:21:40.:21:47.

half a million a year under Labour. Rising to 600,000 by the time you

:21:48.:21:52.

were out of power. A lot of people coming into these crowded islands,

:21:53.:21:55.

particularly since most of them come to London and the South East. Was

:21:56.:22:01.

that intentional? Was that out of control? Is that what you are now

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apologising for? What we said was that the Government got the figures

:22:07.:22:11.

wrong on the migration from Eastern Europe. If you remember particularly

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there was the issue of what happened with not having transitional

:22:16.:22:20.

controls in place. The Government didn't expect the number of people

:22:21.:22:24.

coming to the country to be the way it was. And so obviously mistakes

:22:25.:22:29.

were made. We have recognised that. We have also got to recognise that

:22:30.:22:33.

this is something that has happened in countries all over the world We

:22:34.:22:38.

travel and trade far more than ever. We have an increasingly globalised

:22:39.:22:41.

economy. Other European countries have been affected in the same way,

:22:42.:22:45.

and America, and other developing countries affected in the same way

:22:46.:22:50.

by the scale of migration. I am trying to work out whether the

:22:51.:22:55.

numbers were intentional or if you lost control. The key thing that we

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have said many times and I have already said it to you many times,

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Andrew, that we should have a transitional controls in place on

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Eastern Europe. I think that would have had an impact on them level of

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migration. We also should have brought in the points -based system

:23:13.:23:15.

earlier. We did bring that in towards the end and it did restrict

:23:16.:23:19.

the level of low skilled migration because there are different kinds of

:23:20.:23:22.

migration. University students coming to Britain brings in billions

:23:23.:23:26.

of pounds of investment. On the other hand, low skilled migration

:23:27.:23:30.

can have a serious impact on the jobs market, pay levels and so on at

:23:31.:23:36.

the low skilled end of the labour market. We have to distinguish

:23:37.:23:40.

between different kinds of migration. You keep trying to excuse

:23:41.:23:44.

the figures by talking about the lack of transitional controls. Can

:23:45.:23:48.

we skip the chart I was going to go to? The next one. Under Labour, this

:23:49.:23:53.

is the source of where migrants came from. The main source was not the

:23:54.:23:59.

accession countries or the remainder of Europe. Overwhelmingly they were

:24:00.:24:05.

from the African Commonwealth, and the Indian subcontinent.

:24:06.:24:08.

Overwhelmingly, these numbers are nothing to do with transitional

:24:09.:24:11.

controls. You can control that immigration entirely because they

:24:12.:24:16.

are not part of the EU. Was that a mistake? First of all, the big

:24:17.:24:21.

increase was in the accession groups. Not according to the chart.

:24:22.:24:27.

In terms of the increase, the changes that happened. Secondly in

:24:28.:24:30.

answer to the question that you just asked me, we should also have

:24:31.:24:34.

introduced the points -based system at an earlier stage. Thirdly there

:24:35.:24:39.

has been a big increase in the number of university students coming

:24:40.:24:42.

to Britain and they have brought billions of pounds of investment. At

:24:43.:24:45.

the moment the Government is not distinguishing, it is just using the

:24:46.:24:50.

figure of net migration. And that is starting to go up again, as you said

:24:51.:24:53.

in the introduction, but the problem is that it treats all kinds of

:24:54.:24:58.

migration is aimed. It does not address illegal immigration, which

:24:59.:25:03.

is a problem, but it treats university graduates coming to

:25:04.:25:07.

Britain in the same way as low skilled workers. If Labour get back

:25:08.:25:12.

into power, is it your ambition to bring down immigration? We have

:25:13.:25:15.

already said it is too high and we would support measures to bring it

:25:16.:25:21.

down. You would bring it down? There is something called student visas,

:25:22.:25:24.

which is not included in the figures, and it does not include

:25:25.:25:29.

university graduates, and it is a figure that has increased

:25:30.:25:40.

substantially in recent years. They come for short-term study but they

:25:41.:25:43.

do not even have to prove that they come for a college course. They do

:25:44.:25:46.

not even have to have a place to come. Those visas should be

:25:47.:25:48.

restricted to prevent abuse of the system and that is in line with a

:25:49.:25:50.

recommendation from the Inspectorate and that is the kind of practical

:25:51.:25:53.

thing that we could do. Can you give us a ballpark figure of how much

:25:54.:25:58.

immigration would fall? You have seen the mess that Theresa May has

:25:59.:26:02.

got into with her figures. She made a target that it is clear to me that

:26:03.:26:07.

she will not meet. I think that is right. She will not meet it. Can you

:26:08.:26:29.

give as a ballpark figure by which we can judge you? If she had been

:26:30.:26:32.

more sensible and taken more time to listen to experts and decide what

:26:33.:26:34.

measures should be targeted, then she would not be in this mess. You

:26:35.:26:38.

cannot give me a figure? She has chosen net migration. She has set a

:26:39.:26:40.

target, without ifs and buts. I think it is important not to have a

:26:41.:26:43.

massive gap between the rhetoric and reality. Not to make promises on

:26:44.:26:45.

numbers which are not responsible. OK, you won't give me a figure.

:26:46.:26:50.

Fine. Moving on to crime. 10,00 front line police jobs have gone

:26:51.:26:54.

since 2010 but crime continues to fall. 7% down last year alone. When

:26:55.:26:59.

you told the Labour conference that you do not cut crime by cutting the

:27:00.:27:05.

police, you were wrong. I think the Government is being very complacent

:27:06.:27:07.

about what is happening to crime. Crime patterns are changing. There

:27:08.:27:12.

has been an exponential increase, and that is in the words of the

:27:13.:27:18.

police, in online crime. We have also seen, for example, domestic

:27:19.:27:25.

violence going up, but prosecutions dropping dramatically. There is a

:27:26.:27:29.

serious impact as a result of not having 10,000 police in place. You

:27:30.:27:34.

have talked about the exponential increase in online and economic

:27:35.:27:38.

crime. If those are the big growth areas, why have bobbies on the beat?

:27:39.:27:45.

That would make no difference. It is about an approach to policing that

:27:46.:27:48.

has been incredibly successful over many years, which Labour introduced,

:27:49.:27:51.

which is neighbourhood policing in the community is working hard with

:27:52.:27:56.

communities to prevent crime. People like to see bobbies on the beat but

:27:57.:27:59.

have you got any evidence that it leads to a reduction in crime?

:28:00.:28:05.

Interestingly, the Lords Stevens commission that we set up, they have

:28:06.:28:09.

reported this week and it has been the equivalent of a Royal

:28:10.:28:12.

commission, looking at the number of people involved in it. Their strong

:28:13.:28:17.

recommendation was that this is about preventing crime but also

:28:18.:28:21.

respectful law and order, working with communities, and so they

:28:22.:28:24.

strongly took the view with all of their expertise and the 30 different

:28:25.:28:28.

universities that they have involved with it, that on the basis of all

:28:29.:28:31.

that analysis, the right thing was to keep bobbies on the beat and not

:28:32.:28:37.

push them cars. Instinctively you would think it was true. More

:28:38.:28:42.

visible policing, less crime. But in all the criminology work, I cannot

:28:43.:28:46.

find the evidence. There is competing work about why there has

:28:47.:28:51.

been a 20 year drop in overall crime and everybody has different opinions

:28:52.:28:55.

on why that has happened. The point about neighbourhood policing is that

:28:56.:28:58.

it is broader than crime-fighting. It is about prevention and community

:28:59.:29:05.

safety. Improving the well-being of communities as well. Will you keep

:29:06.:29:10.

the elected Police Commissioners? Big sigh! What the report said was

:29:11.:29:15.

that the system is flawed. We raised concern about this at the beginning.

:29:16.:29:21.

You will remember at the elections, Theresa May's flagship policy, at

:29:22.:29:27.

the elections they cost ?100 million and there was 15% turnout. You have

:29:28.:29:30.

to have a system of accountability at the police. Three options were

:29:31.:29:37.

presented, all of which are forms. So you have to have reform. It is

:29:38.:29:42.

not whether to have reformed, it is which of those options is the best

:29:43.:29:52.

way to do it. The commission set out a series of options, and I thought

:29:53.:29:57.

that the preferable approach would be collaboration and voluntary

:29:58.:30:02.

mergers. We know they won't volunteer. There have been some

:30:03.:30:07.

collaboration is taking place. I think the issues with police and

:30:08.:30:11.

crime commissioners have fragmented things and made it harder to get

:30:12.:30:15.

collaboration between police forces. Everybody is asking this

:30:16.:30:19.

question, just before you go. What is it like living with a nightmare?

:30:20.:30:27.

Who does all the cooking, so I can't complain! Says Miliband people are

:30:28.:30:36.

wrong, he is a dream cook? He is! In a speech this week, Boris Johnson

:30:37.:30:39.

praised greed and envy as essential for economic progress, and that has

:30:40.:30:43.

got tongues wagging. What is the Mayor of London up to? What is his

:30:44.:30:48.

game plan? Does he even have a game plan and does he know if he has one?

:30:49.:30:58.

Flash photography coming up. Boris. In many ways I can leave it there.

:30:59.:31:02.

You'd know who I meant. And if you didn't, the unruly mop of blonde

:31:03.:31:13.

hair would tell you, the language. Ping-pong was invented on the dining

:31:14.:31:16.

tables of England. Somehow pulling off the ridiculous to the sublime.

:31:17.:31:34.

It is going to go zoink off the scale! But often having to speed

:31:35.:31:36.

away from the whiff-whaff of scandal. Boris, are you going to

:31:37.:31:41.

save your manage? There's always been a question about

:31:42.:31:45.

him and his as role as mayor and another prized position, as hinted

:31:46.:31:48.

to the Tory faithful this year at conference, discussing former French

:31:49.:31:54.

Prime Minister Alan Juppe. -- Alain Juppe. He told me he was going to be

:31:55.:32:01.

the mayor of Bordeaux. I think he may have been mayor well he was

:32:02.:32:06.

Prime Minister, it is the kind of thing they do in funds -- AvD in

:32:07.:32:13.

France. It is a good idea, if you ask me. But is it a joke? He is much

:32:14.:32:22.

more ambitious. Boris wants to be Prime Minister more than anything

:32:23.:32:26.

else. Perhaps more than he wants to be made of London. The ball came

:32:27.:32:33.

loose from the back of the scrum. Of course it would give great thing to

:32:34.:32:39.

have a crack at, but it is not going to happen. He might be right. First,

:32:40.:32:44.

the Conservatives have a leader another Old Etonian, Oxford,

:32:45.:32:47.

Bullingdon chap and he has the job Boris might like a crack at. What do

:32:48.:32:53.

you do with a problem like Boris? It is one of the great paradoxes of

:32:54.:32:58.

Tory politics that for Boris Johnson to succeed, David Cameron must feel.

:32:59.:33:04.

Boris needs David Cameron to lose so that he can stand a chance of

:33:05.:33:08.

becoming loser. -- becoming leader. And disloyalty is punished by

:33:09.:33:11.

Conservatives. Boris knows the man who brought down Margaret Thatcher.

:33:12.:33:13.

Michael Heseltine, who Boris replaced as MP for Henley, never got

:33:14.:33:20.

her job. In 1986, she took on the member for Henley, always a risky

:33:21.:33:30.

venture. And why might he make such a jibe, because he's won two more

:33:31.:33:33.

elections than the PM. Conservatives like a winner. Boris, against Robert

:33:34.:33:43.

expectations, has won the Mayor of London job twice. -- public. He

:33:44.:33:52.

might've built a following with the grassroots but he's on shakier

:33:53.:33:55.

ground with many Tory MPs, who see him as a selfish clown, unfit for

:33:56.:34:03.

high office. And besides, he's not the only one with king-sized

:34:04.:34:06.

ambition, and Boris and George are not close, however much they may

:34:07.:34:13.

profess unity. There is probably some Chinese expression for a

:34:14.:34:19.

complete and perfect harmony. Ying and yang. But in plain black and

:34:20.:34:23.

white, if Boris has a plan, it's one he can't instigate, and if David

:34:24.:34:27.

Cameron is PM in 2016, it may not be implementable. He'd need a seat and

:34:28.:34:32.

it wouldn't be plain sailing if he did make a leadership bid. My

:34:33.:34:38.

leadership chances, I think I may have told you before, or about as

:34:39.:34:43.

good as my chances of ying reincarnated as a baked bean. Which

:34:44.:34:48.

is probably quite high. So if the job you want with Brown-esque desire

:34:49.:34:51.

is potentially never to be yours what do you do? He is, of course, an

:34:52.:34:59.

American citizen by birth. He was born in New York public hospital,

:35:00.:35:04.

and so he is qualified to be President of the United States. And

:35:05.:35:09.

you don't need an IQ over 16 to find that the tiniest bit scary.

:35:10.:35:15.

Giles Dilnot reporting. Helen Lewis, Janan Ganesh and Sam Coates are

:35:16.:35:21.

here. Is there a plan for Boris and if so, what is it? I think the plan

:35:22.:35:26.

is for him to say what he thinks the Tory activist base wants to hear

:35:27.:35:31.

just now. He knows that in 18 months time they can disown it. I think he

:35:32.:35:37.

is wrong, the way the speech has played has a limited number of

:35:38.:35:43.

people. He has cross-party appeal. He has now reconfirmed to people

:35:44.:35:46.

that the Tories are the nasty party and they have been pretending to be

:35:47.:35:52.

modernised. Is it not the truth that he needs David Cameron to lose the

:35:53.:35:57.

2015 election to become leader in this decade? It is very interesting

:35:58.:36:04.

watching his fortunes wax and wane. It always seems to happen in inverse

:36:05.:36:08.

proportion to how well David Cameron is doing in front of his own party.

:36:09.:36:13.

There is no small element of strategy about what we are doing

:36:14.:36:17.

here. The problem with Boris is that he's popular with the country, but

:36:18.:36:22.

not with the party's MPs and its hard-core supporters. This was an

:36:23.:36:29.

appeal to the grassroots this week. He is not the only potential

:36:30.:36:34.

candidate. If we were in some kind of circumstance where Boris was a

:36:35.:36:39.

runner to replace Mr Cameron, who with the other front the? I think it

:36:40.:36:48.

will skip a generation. The recent intake was ideological assertive. I

:36:49.:36:54.

do not buy the idea that it will be Jeremy Hunt against Michael Gove. I

:36:55.:36:58.

then, that generation will be tainted by being in government. It

:36:59.:37:06.

is interesting, what is he trying to pull? He is ideological. He does not

:37:07.:37:13.

believe in many things, but he believes in a few things quite

:37:14.:37:17.

deeply, and one is the idea of competition, both in business and

:37:18.:37:23.

academic selection. He has never been squeamish about expressing

:37:24.:37:30.

that. We do make mistakes sometimes, assuming he is entirely political.

:37:31.:37:35.

Look at all the Northern voters who will not vote for the Tories even

:37:36.:37:40.

though they are socially or economic the Conservatives. I do not think he

:37:41.:37:46.

helps. Who in the Tories would help? That is a tough question. To

:37:47.:37:53.

reason me has also been speaking to the hard right. -- Theresa May. I

:37:54.:38:03.

have been out with him at night. It is like dining with a film star.

:38:04.:38:06.

People are queueing up to speak to him. Educational selection is one of

:38:07.:38:13.

the few areas that he can offer. He has gone liberal on immigration, as

:38:14.:38:15.

are made of London would have to. Yes, you are watching the Sunday

:38:16.:38:38.

Politics for Yorkshire, Lincolnshire on the north midlands. Coming up: As

:38:39.:38:42.

the Chancellor promises to cut green taxes on our energy bills, the

:38:43.:38:49.

industry claims it will put jobs in jeopardy and could lead to

:38:50.:38:51.

blackouts. We will also discuss to what extent

:38:52.:38:54.

the Co`op brand has been tarnished by the Paul Flowers scandal with our

:38:55.:38:58.

guests today, Labour MP John Mann, Liberal Democrat David Ward and MEP

:38:59.:39:09.

Godfrey Bloom. So the Chancellor looks set to cut

:39:10.:39:13.

many green taxes in his Autumn statement on Thursday. So`called

:39:14.:39:16.

green levies add more than ?100 a year to the typical household energy

:39:17.:39:20.

bill. But the proposals have prompted a backlash from the

:39:21.:39:23.

renewable energy lobby, who say that without green taxes, thousands of

:39:24.:39:26.

new jobs could be lost across Yorkshire and Lincolnshire, and we

:39:27.:39:41.

could be facing blackouts. In this corner of East Yorkshire,

:39:42.:39:44.

many people have become used to living in the shadow of wind

:39:45.:39:48.

turbines. At the boss of this caravan repair business is not

:39:49.:39:53.

happy. Peter Mills has just received his latest energy bill, and wants to

:39:54.:40:02.

know why it is so high. None of us householders or business premises

:40:03.:40:06.

see anything from this tax that we are being forced to pay. It is not a

:40:07.:40:12.

case of being able to opt out if we want. We just keep on paying, and I

:40:13.:40:17.

don't think anybody will gain from it and I don't think the government

:40:18.:40:24.

knows where the green tax is going. According to the Department of

:40:25.:40:27.

Energy and Climate Change, consumers are charged a range of green levies

:40:28.:40:30.

on their bills, designed to reduce the UK's carbon emissions. It adds

:40:31.:40:37.

up to ?112 a year for the typical household. Of course, there is a

:40:38.:40:42.

different side to this story. Leading figures in the Win your bill

:40:43.:40:48.

energy sector claim that green taxes are vital if thousands of new jobs

:40:49.:40:54.

are to be created on the Humber `` figures in the renewable energy

:40:55.:40:58.

sector. Off the east coast, there is massive potential. Because of that,

:40:59.:41:04.

in the east of England, there was the opportunity to develop a world

:41:05.:41:08.

beating industry, exporting to many parts of the world as a result.

:41:09.:41:12.

There was a huge prize on offer if we can get this policy right. This

:41:13.:41:20.

week, plans for a giant offshore wind farm in the Bristol Channel

:41:21.:41:26.

were shelved after the German energy firm RW is that it was not the right

:41:27.:41:30.

time for the project. Some fear other energy firms could start to

:41:31.:41:34.

think twice about developments off the east coast. This is not just

:41:35.:41:41.

about the renewable addenda, it is about providing energy. If we don't

:41:42.:41:44.

do this right, lights could go out. The government needs to be careful

:41:45.:41:50.

about changing things on these parts of the energy bill. Business leaders

:41:51.:41:56.

hoping to attract new investment into the green energy sector say it

:41:57.:42:01.

is vital that the chancellor sends out the right message in his Autumn

:42:02.:42:07.

statement on Thursday. Will are in the best place in the UK, if not in

:42:08.:42:12.

Europe, to make the best of investment in offshore renewables.

:42:13.:42:20.

So help us out, Mr Osborne. With Labour pledging to freeze energy

:42:21.:42:24.

bills if they win the next election, the chancellor is under

:42:25.:42:29.

pressure to secure a better deal for customers while ensuring our lights

:42:30.:42:34.

they own in future. So, Godfrey Bloom, are we facing

:42:35.:42:38.

blackouts if green energy taxes are cut? We are certainly facing

:42:39.:42:43.

blackouts, as I told this programme in 2006, but not for those reasons.

:42:44.:42:49.

We have a shambolic energy policy . Wind turbines don't work. Offshore

:42:50.:42:52.

wind turbines are the most expensive source of energy the world has ever

:42:53.:42:57.

seen. The whole thing is nonsense. We are putting billions of pounds of

:42:58.:43:01.

subsidies into wind turbines. Nobody would manufacture to them without

:43:02.:43:06.

the subsidies. A huge power station is now burning wood shipped in from

:43:07.:43:12.

Canada. Yes, we will be seeing blackouts in 2015, as I

:43:13.:43:17.

anticipated, but not for these reasons. David Ward, what message is

:43:18.:43:22.

the government sending out to the renewables industry at the moment?

:43:23.:43:26.

At the moment, we have 18 months to go before a general election and

:43:27.:43:31.

there will be increasing opportunities for Lib Dems and the

:43:32.:43:35.

Conservatives to differentiate themselves. The Lib Dems are

:43:36.:43:39.

obviously far greener. The Tory party have pretended they were

:43:40.:43:44.

green. They are not really, and that is becoming evident. John Mann, is

:43:45.:43:49.

it right that families have to pay ?112 a year on top of their energy

:43:50.:43:54.

bills in green levies? Lee we should nationalise the electricity

:43:55.:43:58.

companies. But I totally disagree with Mr Bloom. He wants us to be

:43:59.:44:04.

reliant on Russian gas and Chinese coal in the future. I don't. I want

:44:05.:44:11.

is to be self`sufficient in energy. Green energy is critical to this

:44:12.:44:14.

country being self`sufficient and not relying on other countries for

:44:15.:44:20.

our energy, which will cost us a fortune and also endanger our

:44:21.:44:24.

national`security. Godfrey Bloom, are we at the mercy of Russian gas

:44:25.:44:30.

suppliers? It is funny that he says that. I don't remember saying that.

:44:31.:44:37.

We have our own gas and shale gas. We have coal, and we should follow

:44:38.:44:41.

the trail the Americans have beaten. Their energy prices are half

:44:42.:44:48.

those in this country. We have the most expensive electricity in the

:44:49.:44:52.

world, even more than Germany. It is our policy that is at risk. It has

:44:53.:44:59.

been a shambles, and I am surprised that Mr man, representing a

:45:00.:45:02.

working`class community, can treat them in such a cavalier manner. Are

:45:03.:45:08.

you treating them in a colour cavalier manner? Mr Bloom can say

:45:09.:45:14.

what he wants, but Germany, with a massive amount of renewables, that

:45:15.:45:16.

is why they are getting cheaper prices than us. I am not having this

:45:17.:45:23.

live from him that we have our own gas and oil. We are importing it,

:45:24.:45:27.

and the danger is that we become more reliant on the Russians for

:45:28.:45:31.

imported gas and oil in the future. Like other countries in Eastern

:45:32.:45:34.

Europe, we will end up being in hock to the Russians, who will pump

:45:35.:45:40.

prices up. We need to become self`sufficient. That is why the

:45:41.:45:44.

offshore wind farms on the Humber estuary are a vital part of what we

:45:45.:45:47.

need in the future. That will keep prices down in Britain. To keep

:45:48.:45:54.

prices down in the long term, we need to freeze them and squeeze the

:45:55.:45:58.

profits of these energy companies who are ripping us all off. Tim, if

:45:59.:46:09.

you look at the dogger bank scheme, think of the amount of jobs that

:46:10.:46:19.

will create as it is put together. That will give us 10% of our

:46:20.:46:26.

electricity needs. You asked me earlier, what is the message 's we

:46:27.:46:34.

must have a concerted view on moving forward on green energy. You are

:46:35.:46:37.

talking about billions of pounds of investment. You are not getting

:46:38.:46:43.

agreement from the Conservatives. We are not getting cooperation from the

:46:44.:46:50.

coalition government, because the Conservatives are going soft on it.

:46:51.:46:54.

It is not popular with many on the right wing, like Godfrey. But across

:46:55.:47:00.

the House of Commons, all parties have a common consensus, with a

:47:01.:47:06.

majority in favour of green energy. What do you say to areas of high

:47:07.:47:13.

unemployment that need these jobs? They are bogus jobs. Let's look at

:47:14.:47:17.

Germany and the Iberian peninsular. They are rushing away from the

:47:18.:47:21.

renewable sources of energy to go back into coal as an emergency

:47:22.:47:26.

process because their chemical and automobile industries are talking

:47:27.:47:29.

about moving to America and China. These jobs are bogus. If you ask the

:47:30.:47:34.

people of Hull and the East Riding whether they would sooner have VAT

:47:35.:47:38.

of 5% and their business rates halved and their national insurance

:47:39.:47:41.

rates for employees halved, they would sooner have that. They might

:47:42.:47:45.

as well build steam engines and throw them into the sea. Offshore

:47:46.:47:49.

energy is 12 times the cost of conventional power. It is

:47:50.:47:53.

unsustainable, add it is time people admitted it. There has been a huge

:47:54.:48:00.

mistake. Many will disagree. Now, to what extent has the Co`op

:48:01.:48:04.

brand been damaged by the Paul Flowers scandal? The fallout from

:48:05.:48:06.

the revelations about the former Labour councillor and Methodist

:48:07.:48:09.

minister from Bradford continues, as do the questions about his

:48:10.:48:11.

controversial appointment as chairman of the Co`op Bank.

:48:12.:48:26.

This was planned as a spectacular tribute to 150 years of retail and

:48:27.:48:30.

banking success for a giant organisation still owned by its

:48:31.:48:34.

members. It is just two weeks since the Queen opened the Co`op's new

:48:35.:48:38.

?100 million headquarters in Manchester, but the celebrations

:48:39.:48:42.

were totally overshadowed. The announcement of massive losses at

:48:43.:48:47.

its banking arms, questions over the competence of its chairman, Paul

:48:48.:48:49.

Flowers, then astonishing allegations in national newspapers

:48:50.:48:55.

of a drug fuelled personal life. Now the Co`op says it will not be paying

:48:56.:48:58.

the dividend this year. Last year, it paid out ?8 million to members,

:48:59.:49:02.

but this year it says it can't afford that and is replacing it with

:49:03.:49:06.

food vouchers. So if the Co`op can't even perform that kind of advantage

:49:07.:49:12.

to its members, is there really a place for it in modern retailing and

:49:13.:49:20.

banking? I think it will survive. The mutual idea is one of the best

:49:21.:49:27.

business ideas there is. They are a bit old`fashioned. It has gone down

:49:28.:49:33.

in my estimation. The ayes to the right Michael McGowan is a former

:49:34.:49:36.

MEP and leading cooperative member in Yorkshire. He says the problem is

:49:37.:49:43.

Rudy punishment who took big risks. Big risks were made about the

:49:44.:49:49.

merging with Tanya building society and the proposed acquisition of

:49:50.:49:53.

Lloyds bank branches, which has cost a great deal of money. This is

:49:54.:50:00.

nothing to do with the failure of the cooperative is this model or a

:50:01.:50:06.

failure of mutual principles. It is a failure of governance. I worked

:50:07.:50:12.

for the bank for four years. So why was the Co`op Bank landed with a

:50:13.:50:16.

chairman who is total experience, as he admitted to astonished MPs last

:50:17.:50:21.

month, was as a junior clerk after leaving school? Paul Flowers was a

:50:22.:50:24.

Labour councillor in Bradford and had been a Co`op trustee, but

:50:25.:50:29.

professionally, he was a Methodist minister. How could it come to pass

:50:30.:50:33.

that Paul Flowers, who on any analysis did not have the expertise

:50:34.:50:37.

to do that job, was appointed? What was the regulator doing? There are

:50:38.:50:45.

only two explanations. One is a kind of incompetence of the regulator

:50:46.:50:51.

that was virtually criminal. Or alternatively, there was some kind

:50:52.:50:56.

of undue influence. We need to get to the bottom of that, because it is

:50:57.:50:59.

a scandal. The financial services authority told us they had

:51:00.:51:04.

interviewed Paul Flowers, recognised his professional inexperience and

:51:05.:51:07.

insisted on the appointment of two deputy chairman, one with banking

:51:08.:51:14.

experience and one with insurance experience. All this leaves an

:51:15.:51:17.

organisation held up over generations, based on service to the

:51:18.:51:22.

people by being owned by the people, facing issues of

:51:23.:51:26.

credibility. The Co`op says it is working to overcome its

:51:27.:51:30.

difficulties. Recent retelling success and growth is continuing and

:51:31.:51:34.

appropriate action is being taken to meet its losses at the bank. But

:51:35.:51:37.

with an ongoing Treasury enquiry, questions will be asked for some

:51:38.:51:43.

time to come. Let me go straight to John Mann. You

:51:44.:51:47.

sit on the Treasury select committee and you questioned Paul Flowers when

:51:48.:51:51.

he was chairman of Co`op Bank. With events at that bank have been any

:51:52.:51:58.

different, had Labour been in power? It is unbelievable that the

:51:59.:52:02.

regulators paid to check out these people failed to spot anything about

:52:03.:52:07.

him and that the Co`op itself moved away from the traditional Co`op

:52:08.:52:12.

model into trying to speculate and accumulate, buying other businesses

:52:13.:52:17.

with, as has been said to our committee several times, the

:52:18.:52:22.

government and a minister called Mark Hoban who worked for George

:52:23.:52:28.

Osborne, the tree `` cheerleader, cheering them on every week. It

:52:29.:52:31.

should never have happened. My grandfather was in the Co`op for

:52:32.:52:37.

over 40 years. I was brought up in the Co`op. It is a crying shame, a

:52:38.:52:42.

blight on the whole of our country, that this great institution has such

:52:43.:52:47.

big problems. David, you were a Bradford councillor with Paul

:52:48.:52:50.

Flowers. What did you know about this man and his experience? It is

:52:51.:52:57.

true to say that some eyebrows were raised when we heard that Paul had

:52:58.:53:02.

got this position. He had been associated with the Co`op in

:53:03.:53:05.

different roles beforehand, so he was known within the Co`op. Most of

:53:06.:53:12.

us who knew him were surprised that he would get such an important

:53:13.:53:18.

position. I think the brand is still strong. I still have the Co`op card

:53:19.:53:23.

in my wallet. That side of it will not lose the faith of people. This

:53:24.:53:28.

is not just about the Co`op anyway, because many of the banks that were

:53:29.:53:34.

doing scandalous things over the last ten years had people whose

:53:35.:53:42.

lives were in anchoring. The fact that you had a banking qualification

:53:43.:53:46.

was not a guarantee that you were not going to do scandalous things.

:53:47.:53:51.

Did you personally know why Mr Flowers stepped down as a Bradford

:53:52.:53:58.

councillor? I did not. I left in 2010. I think it occurred after that

:53:59.:54:05.

in 2011, so I was not personally aware of that. But having spoken to

:54:06.:54:10.

some of my colleagues, they were sure there were rumours flying

:54:11.:54:15.

around. So Labour councillors did no? Well, we know the leader of the

:54:16.:54:21.

group knew. Godfrey Bloom, what is your take on this? I worked for 20

:54:22.:54:26.

years in the mutual sector, and I am a big believer in mutuality. I

:54:27.:54:33.

worked on the investment side, and I entirely agree with Mr Mann. This

:54:34.:54:38.

has been mismanaged. It is scandalous. It has damaged the

:54:39.:54:44.

concept of mutuality, which a lot of people believe in, regardless of

:54:45.:54:51.

their backgrounds. But the financial services authority is run by

:54:52.:54:55.

amateurs as well. I have been a scourge of these henchmen on huge

:54:56.:55:02.

salaries . It comes as no surprise. I agree with David that there has

:55:03.:55:06.

been plenty of incompetence. Some of them need to go to prison. This is

:55:07.:55:13.

John 's specialist era, but we have had the financial services 2012 act

:55:14.:55:15.

and there is a bill going in front of the Lords which is about banking

:55:16.:55:20.

reform and splitting of the investment and traditional banking.

:55:21.:55:27.

Whether that will change, I would hope it will improve. John, do you

:55:28.:55:31.

have any confidence in the regulation of the banks? Have we

:55:32.:55:37.

just rearranged the Titanic? B yes, it is bankers regulating bankers,

:55:38.:55:43.

and that is a fundamental problem. If this was any other industry, it

:55:44.:55:48.

would have gone bankrupt. If it was any other part of life, people would

:55:49.:55:52.

have gone to prison. Bankers, like politicians, should not be some kind

:55:53.:55:57.

of special breed who are allowed to get away with it. If we don't do

:55:58.:56:00.

something about it and hold them to account, we will see these scandals

:56:01.:56:07.

continue. I fear for the future of the Co`op, not just because people

:56:08.:56:10.

don't like the brand. I love the brand. But today, the Co`op branch

:56:11.:56:16.

in Worksop has closed. How much more can they bear financially? What was

:56:17.:56:24.

the government doing with George Osborne encouraging them? To try and

:56:25.:56:33.

buy branches from Lloyds? He has got questions to answer. More to come on

:56:34.:56:36.

this, no doubt. Let's get more of the week's

:56:37.:56:38.

political news now. Louise Martin has our round`up in 60 seconds.

:56:39.:56:52.

Boston in Lincolnshire, where 60% of its population are now from Eastern

:56:53.:56:56.

Europe. As the prime minister announces tougher rules for EU

:56:57.:56:59.

immigrants to claim benefits, many here say they are being unfairly

:57:00.:57:08.

portrayed the and politicians. My Romanian friends here are all social

:57:09.:57:15.

workers and nurses, good people. As anger grows at rising utility bills,

:57:16.:57:18.

Yorkshire water announces it will peg its price rises to the rate of

:57:19.:57:22.

inflation for the next five years, even though legally, it could charge

:57:23.:57:27.

more to pay for investment in infrastructure. And controversy over

:57:28.:57:30.

whether reducing speeds on our roads is helping save lives or a

:57:31.:57:35.

moneymaking trick by the authorities. No guesses for them

:57:36.:57:38.

raised the issue. Speeding does not kill. What kills people is driving

:57:39.:57:45.

with undue care and attention, dangerous driving, driving like an

:57:46.:57:53.

idiot. David Ward, are you happy with the

:57:54.:57:59.

government's latest crackdown on immigration, this plan to limit

:58:00.:58:06.

benefits to migrants? I am worried about the immigration hysteria that

:58:07.:58:09.

is taking place. Nobody wants illegal in and is, and we need to

:58:10.:58:16.

deal with them `` illegal immigrants. But I am worried that it

:58:17.:58:23.

is all being banded together and any migrants seem to be under attack. I

:58:24.:58:27.

am angry with the comments being made about the Roma community. By

:58:28.:58:34.

your own party leader? Indeed, and I have spoken to Nick about this. We

:58:35.:58:40.

have a difference of opinion. But the comments of David Blunkett in

:58:41.:58:42.

particular were potentially dangerous. At the last election,

:58:43.:58:49.

Nick wanted an amnesty on illegal immigrant is. And Boris wants an

:58:50.:58:52.

amnesty now, so it is amazing how the world turns. That was a good

:58:53.:59:01.

idea, to get people off the black market and into paid employment and

:59:02.:59:07.

paying taxes and so on. But it was difficult to explain that to people.

:59:08.:59:12.

Godfrey, what did you make of the Hungarian Commissioner's comments

:59:13.:59:16.

that we are now seen as a nasty country? That is just propaganda. We

:59:17.:59:20.

don't actually control our own orders, which means we don't control

:59:21.:59:25.

our immigration policy. If you go to South Yorkshire and Sheffield, you

:59:26.:59:29.

will find there is over 30% youth unemployment, and the indigenous

:59:30.:59:34.

population are saying, why are we letting these people in when there

:59:35.:59:37.

aren't enough jobs for us? Until we start answering these questions as a

:59:38.:59:41.

nation, we are building up serious trouble for the future. It is very

:59:42.:59:46.

nasty in certain parts of this country, and the people we have let

:59:47.:59:50.

in are not good, hard`working Poles like the family I married into, they

:59:51.:59:56.

are suspicious people. Many are still blaming Labour's decision to

:59:57.:00:00.

open the gates to Eastern Europe in 2004. Do you think the party will

:00:01.:00:05.

have trouble with this issue? That should not have been done in my

:00:06.:00:11.

view. But this commission keeps plaguing me with phone calls because

:00:12.:00:15.

I have told him to sort out the problems in his own country, where

:00:16.:00:19.

there is horrendous racism and anti`Semitism, with Jewish

:00:20.:00:24.

communities fleeing from Hungary and the Roma community is being attacked

:00:25.:00:28.

in the streets. He needs to do his job and sort out the problems in his

:00:29.:00:32.

own country. We can't have his people being attacked on the street

:00:33.:00:35.

and people being forced to flee. That is no civilised way to live in

:00:36.:00:42.

any country. I want to congratulate you for saying that, because

:00:43.:00:45.

everybody is talking about the benefits and a hospital treatment

:00:46.:00:50.

people are coming for, but we need to look at the push factors. Why are

:00:51.:00:55.

people coming here? Because of the racism they face in their own

:00:56.:00:58.

countries. We need to put pressure on some of those European countries,

:00:59.:01:02.

which are almost using a sort of apartheid system towards the Roma.

:01:03.:01:06.

Godfrey Bloom, where are you going to stand on this? I will be standing

:01:07.:01:16.

in my Euro constituency, so it will definitely be Yorkshire. I knew you

:01:17.:01:20.

would come back to politics. That's it from us. Thanks to our

:01:21.:01:24.

guests, John Mann, David Ward and Godfrey Bloom. Now back to Andrew

:01:25.:01:26.

Neil in London. that. That is all we have time for.

:01:27.:01:41.

Thank you. What rabbit has George Osborne got up his sleeve? And

:01:42.:01:47.

what's David Cameron up to in China? All questions for The Week Ahead. To

:01:48.:01:54.

help the panel led, we are joined by Kwasi Kwarteng, Tory MP. Welcome to

:01:55.:02:02.

the Sunday Politics. Why has the government been unable to move the

:02:03.:02:06.

agenda and to the broad economic recovery, and allowed the agenda to

:02:07.:02:10.

stay on Labour's ground of energy prices and living standards? Energy

:02:11.:02:15.

has been a big issue over the last few months but the autumn state and

:02:16.:02:19.

will be a wonderful opportunity to readdress where we are fighting the

:02:20.:02:23.

ground, the good economic news that we delivered. If you look at where

:02:24.:02:29.

Labour were earlier this year, people were saying they would they 5

:02:30.:02:33.

million people unemployed. They were saying that there should be a plan

:02:34.:02:43.

B. He is not in the Labour Party? Elements of the left were suggesting

:02:44.:02:47.

it. Peter Hain told me it would be up to 3 million people. Danny

:02:48.:02:52.

Blanchflower said it would be 5 million people. So we have got to

:02:53.:02:57.

get the economy back to the centre of the debate? Yes, the game we were

:02:58.:03:03.

playing was about the economy. That was the central fighting ground of

:03:04.:03:06.

the political debate. We were winning that battle. Labour have

:03:07.:03:11.

cleverly shifted it onto the cost of living. It is essential that the

:03:12.:03:16.

government, that George, talks about the economy. That has been its great

:03:17.:03:27.

success. I do not think this has been a week of admitting that Labour

:03:28.:03:29.

was right, plain cigarettes packaging, other issues. If you look

:03:30.:03:37.

at the big picture, where we are with the economy, we have the

:03:38.:03:43.

fastest growing economy in the G-7. Despite Labour's predictions, none

:03:44.:03:47.

of this has happened, none of the triple dip has happened. The British

:03:48.:03:53.

economy is on a good fitting. That is a good story for the government

:03:54.:03:58.

to bat on. You say that people have stopped talking about the economic

:03:59.:04:01.

recovery, but it is worse than that, people have stopped talking about

:04:02.:04:07.

the deficit? As long as people were talking about the deficit, the

:04:08.:04:11.

Tories were trusted. But people have forgotten about it. This country

:04:12.:04:17.

still spends ?100 billion more than it raises. Yes, I am of the view

:04:18.:04:23.

that the deficit, the national debt, is the biggest question facing

:04:24.:04:29.

this generation of politicians. You are right to suggest that the

:04:30.:04:31.

Conservative Party was strong on this. That head, not deficit, is not

:04:32.:04:39.

going to come down in the foreseeable future? It is rising.

:04:40.:04:44.

This is a test that George Osborne is not going to pass. We know what

:04:45.:04:48.

is coming in the Autumn Statement, it is lots of giveaways, paying for

:04:49.:04:53.

free school meals, paying for fuel duty subsidies. We are still talking

:04:54.:04:58.

about the cost of living, not changing it actively wider economy.

:04:59.:05:04.

There might be extra money for growth but it is not clear what will

:05:05.:05:11.

happen to that. If it is time for giveaways, let's speak about Labour.

:05:12.:05:14.

I have never been a fan of giveaways. Fiscal prudence is what

:05:15.:05:23.

our watchword should be. Look at the headlines. Each time, the deficit

:05:24.:05:27.

figures, the debt figures, were always worse than predicted. This

:05:28.:05:32.

year it will be significantly better. I think that is significant.

:05:33.:05:39.

Any kind of recovery is probably better than no recovery at all. When

:05:40.:05:44.

you look at this recovery, it is basically a consumer spending boom.

:05:45.:05:49.

Consumer spending is up, business investment is way down compared with

:05:50.:05:56.

2008, and exports, despite a 20 devaluation, our flat. Let's get one

:05:57.:06:02.

thing straight, it is a recovery. Any recovery is better than no

:06:03.:06:08.

recovery. Now we can have a debate about, technical debate about the

:06:09.:06:14.

elements of the recovery. It is not technical, it is a fact. There is

:06:15.:06:19.

evidence that there is optimism in terms of what are thinking...

:06:20.:06:26.

Optimism? If I am optimistic about the economy, I am more likely to

:06:27.:06:31.

spend money and invest in business. So far you have not managed that?

:06:32.:06:37.

Exports have not done well either? Exports are not a big section of the

:06:38.:06:41.

British economy. But of course, they are important. But given where we

:06:42.:06:48.

were at the end of last year, no economist was saying that we would

:06:49.:06:53.

be in this robust position today. That is true, in terms of the

:06:54.:07:00.

overall recovery. Now the PM loves to "bang the drum abroad for British

:07:01.:07:04.

business" and he's off to China this evening with a plane-load of British

:07:05.:07:07.

business leaders. And it's not the first time. Take a look at this

:07:08.:07:37.

Well, you might not think exports unimportant, but clearly the Prime

:07:38.:08:03.

Minister and the Chancellor do. They are important, but they are not what

:08:04.:08:09.

is driving the growth at the moment. We used to talk about the need for

:08:10.:08:13.

export led recovery is, that is why the Prime Minister is going to

:08:14.:08:18.

China. Absolutely, and he's doing the right thing. Do we have any

:08:19.:08:23.

evidence that these tend of trips produce business? The main example

:08:24.:08:29.

so far is the right to trade the Chinese currency offshore. London

:08:30.:08:34.

has a kind of global primacy. London will be the offshore centre. Is that

:08:35.:08:40.

a good thing? I have no problem at all with this sort of policy. I do

:08:41.:08:44.

not think that Britain has been doing this enough compared with

:08:45.:08:48.

France and Germany in recent years. I am optimistic in the long term

:08:49.:08:53.

about this dish -- about British exports to China. China need machine

:08:54.:09:00.

tools and manufacturing products. In 20 years time, China will be buying

:09:01.:09:05.

professional groups, educational services, the things we excel at.

:09:06.:09:11.

All we need to do is consolidate our strengths, stand still and we will

:09:12.:09:16.

move forward. The worst thing we can do is reengineer the economy towards

:09:17.:09:18.

those services and away from something else. We have a lot of

:09:19.:09:26.

ground to make up, Helen? At one stage, it is no longer true, but at

:09:27.:09:30.

one stage you could say that we exported more to Ireland, a country

:09:31.:09:34.

of 4 million people, than we did to Russia, China, India, Brazil, all

:09:35.:09:43.

combined. I believe we form 1% of Chinese imports now. The problem is

:09:44.:09:49.

what you have to give up in exchange for that. It is a big problem for

:09:50.:09:54.

David Cameron's credibility that he has had to row back on his meeting

:09:55.:10:01.

with the Dalai llama. This trip we have been in the deep freeze with

:10:02.:10:06.

China for a couple of years. This trip has come at a high cost. We

:10:07.:10:11.

have had to open up the City of London to Chinese banks without much

:10:12.:10:15.

scrutiny, we have had to move the date of the Autumn Statement, and

:10:16.:10:19.

there is no mention of human rights. It is awkward to deal with that all

:10:20.:10:23.

in the name of getting up to where we were a few years ago. A month

:10:24.:10:31.

after strong anchor -- one month after Sri Lanka, where he apologised

:10:32.:10:35.

three human rights abuses, this is difficult to take. Do we have any

:10:36.:10:41.

idea what the Prime Minister hopes to do in China this time? I am not

:10:42.:10:46.

sure there is anything specific but when you go to these countries,

:10:47.:10:50.

certainly in the Middle East China, they complain, why has the Prime

:10:51.:10:55.

Minister not come to see us? That is very important. High-level

:10:56.:11:00.

delegations from other countries go to these places because the addict

:11:01.:11:05.

-- because they are important export markets. You might look at the Prime

:11:06.:11:16.

Minister playing cricket over there, and wonder, what is that for? I do

:11:17.:11:21.

not mind the Prime Minister Rajoy cricket. This is a high visibility

:11:22.:11:26.

mission, chose that politicians in Britain care. You are part of the

:11:27.:11:32.

free enterprise group. It had all sorts of things on it like tax cuts

:11:33.:11:36.

for those on middle incomes or above the 40% bracket, tax cuts worth 16

:11:37.:11:44.

billion. You will get none of that on Thursday, we are agreed? No. But

:11:45.:11:49.

he does have two budgets between now and the election and if the fiscal

:11:50.:11:57.

position is using a little bit, he may have more leeway than it looked

:11:58.:12:00.

like a couple of months ago. Yes, from a free enter prise point of

:12:01.:12:06.

view, we have looked at the tax cuts that should be looked at. The 4 p

:12:07.:12:12.

rate comes in at quite a low level for people who, in the south-east,

:12:13.:12:18.

do not feel particularly wealthy. They are spending a lot of money on

:12:19.:12:24.

commuting, energy bills. The Chancellor has been very open about

:12:25.:12:28.

championing this. He says that the 40p rate will kick in at a slightly

:12:29.:12:33.

higher rate. Labour had a bad summer and the opinion polls seem to be

:12:34.:12:38.

narrowing. Then they had a good hearty conference season. The best.

:12:39.:12:43.

Has the Labour lead solidified or increased the little, maybe up to

:12:44.:12:48.

eight points? If it is a good Autumn Statement, or the Tories start to

:12:49.:12:52.

narrow that lead by the end of the year? If they go into 2014 trailing

:12:53.:12:58.

by single digits, they cannot complain too much. That gives them

:12:59.:13:03.

18 months to chip away at Labour's lead. But do they do that chipping

:13:04.:13:09.

away by eight bidding Labour or do they let time take its course and

:13:10.:13:13.

let the economic recovery continue, maybe business investment joins

:13:14.:13:17.

consumer spending as a source of that recovery, and a year from now,

:13:18.:13:21.

household disposable income begins to rise? That is a better hope than

:13:22.:13:29.

engaging in a bidding war. Be assured, they will be highly

:13:30.:13:32.

political budgets. That's all for today. The Daily Politics is on BBC

:13:33.:13:35.

Two at midday all this week, except on Thursday when we'll start at

:13:36.:13:39.

10:45 to bring you live coverage and analysis of the Chancellor's Autumn

:13:40.:13:41.

Statement in a Daily Politics special for BBC Two and the BBC News

:13:42.:13:45.

Channel. Remember if it's Sunday, it's the Sunday Politics.

:13:46.:13:48.

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