05/02/2017 Sunday Politics


05/02/2017

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It's Sunday morning, and this is the Sunday Politics.

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Theresa May pledged to help people who are "just about managing",

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and this week her government will announce new measures to boost

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the number of affordable homes and improve conditions for renters.

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After a US court suspends Donald Trump's travel ban and rules

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it could be unconstitutional, one of the President's inner circle

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tells me there is no "chaos", and that Donald Trump's White House

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is making good on his campaign promises.

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As the Government gets into gear for two years

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of Brexit negotiations, we report on the haggling to come

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over the UK's Brexit bill for leaving the European Union -

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and the costs and savings once we've left.

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In London, banned in 2015 from standing for public office.

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Is the former mayor of Tower Hamlets, Lutfur Rahman,

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And with me, as always, a trio of top political

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journalists - Helen Lewis, Tom Newton Dunn

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They'll be tweeting throughout the programme,

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So, more anguish to come this week for the Labour party as the House

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of Commons continues to debate the bill which paves the way

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Last week, Labour split over the Article 50 bill,

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with a fifth of Labour MPs defying Jeremy Corbyn to vote against.

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Five shadow ministers resigned, and it's expected Mr Corbyn

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will have to sack more frontbenchers once the bill is voted

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Add to that the fact that the Labour Leader's close ally

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Diane Abbot failed to turn up for the initial vote -

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blaming illness - and things don't look too rosy

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The Shadow Foreign Secretary Emily Thornberry was asked

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about the situation earlier on the Andrew Marr show.

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The Labour Party is a national party and we represent the nation,

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and the nation is divided on this, and it is very difficult.

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Many MPs representing majority Remain constituencies have this very

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difficult balancing act between - do I represent my constituency,

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Labour, as a national party, have a clear view.

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We fought to stay in Europe, but the public have spoken,

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But the important thing now is not to give Theresa May a blank check,

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we have to make sure we get the right deal for the country.

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That was Emily Thornberry. Helen, is this like a form of Chinese water

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torture for the Labour Party? And for journalists, to! We are in a

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situation where no one really thinks it's working. A lot of authority has

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drained away from Jeremy Corbyn but no one can do anything about it.

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What we saw from the leadership contest is on the idea of a Blairite

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plot to get rid of him. You are essentially stuck in stasis. The

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only person that can remove Jeremy Corbyn is God or Jeremy Corbyn.

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Authority may have moved from Mr Corbyn but it's not going anywhere

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else, there's not an alternative centre of authority? Not quite, but

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Clive Lewis is name emerging, the Shadow Business Secretary. A lot of

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the Labour left, people like Paul Mason, really like him and would

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like to see him in Corbyn. I think that's why Jeremy Corbyn do

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something extraordinary next week and abstain from Article 50, the

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main bill itself, to keep his Shadow Cabinet together. That clip on

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Andrew Marr, point blank refusing to say if Labour will vote for Article

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50. The only way Jeremy Corbyn can hold this mess together now is to

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abstain, which would be catastrophic across Brexit constituencies in the

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North. The problem with abstention is everyone will say on the issue of

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our time, the official opposition hasn't got coherent or considered

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policy? I love the way Emily Thornberry said the country is

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divided and we represent the country, in other words we are

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divided at the party as well. The other thing that was a crucial

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moment this week is the debate over whether there should be a so-called

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meaningful vote by MPs on the deal that Theresa May gets. That is a

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point of real danger for Brexit supporters. It may well be there is

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a coalition of Labour and SNP and Remain MPs, Tory MPs, who vote for

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that so-called meaningful vote that could undermine Theresa May's

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negotiation. So Theresa May could have had troubles as well, not plain

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sailing for her? There is no point, apart from lonely Ken Clarke voting

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against Article 50, no point in Tory remainders rebelling. It would have

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been a token gesture with no support. But there might be

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meaningful amendments. One might be on the status of EU nationals... The

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government could lose that. There might be a majority for some of

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those amendments. The ins and outs of the Labour Party, it fascinates

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the Labour Party and journalists. I suspect the country has just moved

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on and doesn't care. You are probably quite right. To be honest I

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struggled to get Labour split stories in my paper any more, the

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bar is so high to make it news. Where it does matter is now not

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everyone will pay huge amounts to the -- of attention to the vote on

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Wednesday. But come the general election in 2020, maybe a little

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earlier, every Tory leaflet and every labour constituency will say

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this guy, this goal, they refuse to vote for Brexit, do you want them in

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power? That is going to be really hard for them. The story next week

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may be Tory splits rather than just Labour ones, we will see.

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Theresa May has made a big deal out of her commitment to help people

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on middle incomes who are "just about managing", and early this week

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we should get a good sense of what that means in practice -

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when plans to bring down the cost of housing and protect renters

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are published in the Government's new white paper.

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Theresa May has promised she'll kick off Brexit negotiations with the EU

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by the end of March, and after months of shadow-boxing

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Ellie Price reports on the battle to come over the UK's Brexit bill,

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and the likely costs and savings once we've left.

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It was the figure that defined the EU referendum campaign.

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It was also a figure that was fiercely disputed, but the promise -

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vote leave and Britain won't have to pay into the EU are any more.

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So, is that what's going to happen now?

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The trouble with buses is you tend to have to wait for them

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and when Theresa May triggers Article 50, the clock starts

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She needs something quicker, something more sporty.

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According to the most recent Treasury figures,

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Britain's gross contribution to the EU, after the rebate

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is taken into account, is about ?14 billion a year.

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There are some complicating factors that means it can go up

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or down year on year, but that's roughly how much the UK

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will no longer sending to Brussels post-Brexit.

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But, there are other payments that Britain will have to shell out for.

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First and foremost, the so-called divorce settlement.

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It is being said, and openly by Commissioner Barnier

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and others in the Commission, that the total financial liability

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as they see it might be in the order of 40-60 billion

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The BBC understands the figure EU negotiators are likely

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to settle on is far lower, around 34 billion euros,

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but what does the money they are going to argue

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Well, that's how much Britain owes for stuff in the EU budget that's

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already signed up for until 2020, one year after we are

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Historically, Britain pays 12% in contributions,

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so the cost to the UK is likely to be between ten

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Then they will look at the 200-250 billion euros of underfunded

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spending commitments, the so-called RAL.

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Britain could also be liable for around 5-7 billion euros

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for its share in the pensions bill for EU staff, that's again

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12% of an overall bill of 50-60 billion.

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Finally there's a share of our assets held by the EU.

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They include things like this building, the European Commission

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Britain could argue it deserves a share back of around 18 billion

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euros from a portfolio that's said to be worth 153 billion euros.

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So, lots for the two sides to discuss in two years of talks.

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They have a great opportunity with the Article 50 talks

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because actually they can hold us to ransom.

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They can say, "You figure out money, we will talk about your trade.

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But until you've figured out the money, we won't," so I think

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a lot of European states think they are in a very strong

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negotiating position at the moment and they intend to make

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The principle is clear, the days of Britain making vast

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contributions to the European Union every year will end.

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Theresa May has already indicated that she would want to sign back up

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to a number of EU agencies on a program-by-program basis.

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The Europol for example, that's the European crime

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agency, or Erasmus Plus, which wants student exchanges.

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If everything stays the same as it is now, it would cost the UK

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675 million euros a year, based on analysis by

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But there are likely to be agencies we don't choose to participate in.

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If we only opted back to those dealing with security,

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trade, universities and, say, climate change,

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it could come with a price tag of 370 million euros per year.

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Of course that's if our European neighbours allow us.

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I wonder if they're going to let me in!

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There will also be a cost to creating a new system to resolve

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trade disputes with other nations once we are no longer part

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Take the EFTA Court which rules on disputes

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between the EU and Norway, Iceland and Lichtenstein.

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That costs 4 million euros to run each year,

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though in the Brexit White Paper published this week,

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the Government said it will not be constrained by precedent

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Finally, would the EU get behind the idea of Britain making some

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contribution for some preferential access to its market?

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The sort of thing that Theresa May seems to be hinting

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at are sectoral arrangements, some kind of partial membership

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Switzerland, which has a far less wide-ranging deal than Norway,

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pays about 320 million a year for what it gets into the EU budget,

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but it's not exactly the Swiss deal that we're after.

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The EU institutions hate the Swiss deal because it is codified

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in a huge number of treaties that are messy, complicated

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and cumbersome, and they really don't want to replicate

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Theresa May has been at pains to insist she's in the driving seat

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when it comes to these negotiations, and that she's

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But with so much money up for discussion, it may not be such

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Sadly she didn't get to keep the car!

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And I've been joined to discuss the Brexit balance sheet

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by the director of the Centre for European Reform, Charles Grant,

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and by Henry Newman who runs the think tank Open Europe.

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Henry Newman, these figures that are being thrown about in Brussels at

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the moment, and exit bill of 40-60,000,000,000. What do you make

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of them? I think it is an opening gambit from the institutions and we

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should take them seriously. We listened to Mr Rogers, the former

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ambassador to Brussels in the House of Commons last week, speaking about

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the sort of positions the EU is likely to take in the negotiation. I

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personally think the Prime Minister should be more concerned about

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getting the right sort of trade arrangements, subsequent to our

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departure, than worrying about the exact detail of the divorce

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settlement and the Bill. They might not let them go on to trade until

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they resolve this matter. Where does the Brexit bill, the cost of exit,

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if there is to be one, in terms of a sum of money, where does that come

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in the negotiations, upfront or at the end? The European Commission has

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a firm line on this. You have to talk about the Brexit bill and the

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divorce settlement before you talk about the future relationship.

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Therefore they are saying if you don't sign up for 60 billion or

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thereabouts, we won't talk about the future. Other member states take a

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softer line than that and think you probably have to talk about the

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divorce settlement and Brexit bill as the same -- at the same time as

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the economic situation. If you can do both at the same time, the

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atmosphere may be better natured. You have spoken to people in

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Brussels and are part of a think tank, how Revista gives the figure

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or is it an opening gambit? Most member states and EU institutions

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believe they think it is the true figure but when the negotiations

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start adding the number will come down. As long as the British are

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prepared to sign up to the principle of we owe you a bit of money, as the

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cheque, then people will compromise. What is the ballpark? You had a

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figure of 34 billion, that is news to me, nobody knows because

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negotiations haven't started but I think something lower than 60. Even

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60 would be politically toxic for a British government? I think Theresa

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May is in a strong position, she has united the Conservative Party. You

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could expect coming into this year all the Conservative divisions would

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be laid bare by Gina Miller. But she is leading a united party. Labour

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Party are divided... Coogee get away with paying 30 billion? We should

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give her the benefit of the doubt going into these negotiations, let

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her keep her cards close to her chest. The speech he gave a few

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weeks ago at Lancaster House, our judgment was she laid out as much

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detail as we could have expected at that point. I don't think it's

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helpful for us now to say, we shouldn't be introducing further red

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line. I want you to be helpful and find things out. I would suggest if

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there is a bill, let's say it's 30 billion, let's make it half of what

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the current claims coming out of Brussels. And of course it won't

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have to be paid in one year, I assume it's not one cheque but

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spread over. But we will wait a long time for that 350 million a week or

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what ever it was that was meant to come from Brussels to spend on the

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NHS. That's not going to happen for the next five, six or seven years.

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Everyone has been clear there will be a phased exit programme. The

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question of whether something is political possible for her in terms

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of the divorce settlement will depend on what she gets from the

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European Union in those negotiations. If she ends up

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settling for a bill of about 30 billion which I think would be

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politically... No matter how popular she is, politically very difficult

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for her, it does kill any idea there is a Brexit dividend for Britain.

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Some of the senior officials in London and Brussels are worried this

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issue could crash the talks because it may be possible for Theresa May

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to accept a Brexit bill of 30 billion and if there is no deal and

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will leave EU without a settlement, there is massive legal uncertainty.

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What contract law applies? Can our planes take off from Heathrow?

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Nobody knows what legal rights there are for an EU citizen living here

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and vice versa. If there is no deal at the end of two years, it is quite

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bad for the European economy, therefore they think they have all

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the cards to play and they think if it is mishandled domestically in

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Britain than we have a crash. But there will be competing interests in

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Europe, the Baltic states, Eastern Europe, maybe quite similar of the

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Nordic states, that in turn different from the French, Germans

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or Italians. How will Europe come to a common view on these things? At

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the moment they are quite united backing a strong line, except for

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the polls and Hungarians who are the bad boys of Europe and the Irish who

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will do anything to keep us happy. We should remember their priority is

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not economics, they are not thinking how can they maximise trade with the

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UK, they are under threat. The combination of Trump and Brexit

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scares them. They want to keep the institutions strong. They also want

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to keep Britain. That is the one strong card we have, contributing to

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security. We know we won't be members of the single market, that

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was in the White Paper. The situation of the customs union is

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more complicated I would suggest. Does that have cost? If we can be a

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little bit pregnant in the customs union, does that come with a price

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ticket? We have got some clarity on the customs union, the Prime

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Minister said we would not be part of the... We would be able to do our

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own trade deals outside the EU customs union, and also not be part

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of the common external tariff. She said she is willing to look at other

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options and we don't know what that will be so as a think tank we are

:18:37.:18:40.

looking at this over the next few weeks and coming up with

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recommendations for the Government and looking at how existing

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boundaries between the EU customs union and other states work in

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practice. For example between Switzerland and the EU border,

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Norway and Switzerland, and the UK and Canada. We will want is a

:18:56.:19:01.

country the freedom to do our own free trade deals, that seems to be

:19:02.:19:07.

quite high up there, and to change our external tariffs to the rest of

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the world. If that's the case, we do seem to be wanting our cake and

:19:13.:19:17.

eating it in the customs union. Talking to some people in London, it

:19:18.:19:21.

is quite clear we are leaving the essentials of the customs union, the

:19:22.:19:26.

tariff, so even if we can minimise controls at the border by having

:19:27.:19:32.

mutual recognition agreements, so we recognise each other's standards,

:19:33.:19:34.

but there will still have to be checks for things like rules of

:19:35.:19:39.

origin and tariffs if tariffs apply, which is a problem for the Irish

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because nobody has worked out how you can avoid having some sort of

:19:44.:19:47.

customs control on the border between Northern Ireland and the

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South once we are out of the customs union. I think it's important we

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don't look at this too much as one side has to win and one side has to

:19:55.:20:00.

lose scenario. We can find ways. My Broadview is what we get out of the

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negotiation will depend on politics more than economic reality. Economic

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reality is strong, there's a good case for a trade deal on the

:20:08.:20:24.

solution on the customs deal, but Britain will need to come up with a

:20:25.:20:26.

positive case for our relationship and keep making that case. If it

:20:27.:20:29.

turns out the Government thinks the bill is too high, that we can't

:20:30.:20:32.

really get the free trade deal done in time and it's left hanging in the

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wind, what are the chances, how I as things stand now that we end up

:20:36.:20:39.

crashing out? I'd say there's a 30% chance that we don't get the free

:20:40.:20:42.

trade agreement at the end of it that Mrs May is aiming for. The very

:20:43.:20:48.

hard crash is you don't even do an Article 50 divorce settlement from

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you go straight to World Trade Organisation rules. The less hard

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crash is doing the divorce settlement and transitional

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arrangements would require European Court of Justice arrangements. We

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will leave it there. Thank you, both.

:21:07.:21:07.

Donald Trump's flagship policy of extreme vetting of immigrants

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and a temporary travel ban for citizens of seven mainly-muslim

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countries was stopped in its tracks this weekend.

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On Friday a judge ruled the ban should be lifted and that it

:21:15.:21:17.

That prompted President Trump to fire off a series of tweets

:21:18.:21:22.

criticising what he says was a terrible decision

:21:23.:21:24.

by a so-called judge, as he ordered the State Department

:21:25.:21:27.

Now the federal appeals court has rejected his request to reinstate

:21:28.:21:35.

the ban until it hears the case in full.

:21:36.:21:46.

Well yesterday I spoke to Sebastian Gorka, Deputy Assistant

:21:47.:21:50.

I asked him if the confusion over the travel ban

:21:51.:21:54.

was a sign that the President's two-week-old administration

:21:55.:21:56.

There is no chaos, you really shouldn't believe the spin, the

:21:57.:22:09.

facts speak for themselves. 109 people on Saturday were mildly

:22:10.:22:15.

inconvenienced by having their entry into the United States delayed out

:22:16.:22:21.

of 325,000. So let's not get carried away with the left-wing media bias

:22:22.:22:30.

and spin. Hold on, 60,000 - 90,000 people with visas, their visas are

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no longer valid. That's another issue. You need to listen to what

:22:35.:22:38.

I'm saying. The people who entered on the day of the executive order

:22:39.:22:44.

being implemented worth 109 people out of 325. Whether people won't

:22:45.:22:51.

travelling to America were affected is another matter, so there is no

:22:52.:23:00.

chaos to comment on. Following Iran's latest missile tests,

:23:01.:23:05.

National Security adviser Flint said the US was "Putting Iran on notice",

:23:06.:23:11.

what does that mean? It means we have a new president and we are not

:23:12.:23:14.

going to facilitate the rise of one of the most dangerous nations in the

:23:15.:23:20.

world. We are jettisoning this naive and dangerous policy of the Obama

:23:21.:23:28.

Administration to try and make the Shi'ite dictatorial democracy some

:23:29.:23:31.

kind of counter balance to extremist Sunni groups in the region and that

:23:32.:23:36.

they cannot continue to behave in the way they have behaved for the

:23:37.:23:40.

last 30 years. It is a very simple message. So are there any

:23:41.:23:46.

multilateral alliances that Mr Trump would like to strengthen?

:23:47.:23:52.

Absolutely. If we are looking at the region, if you listen to what

:23:53.:23:55.

President Trump has said and specifically to also the speeches of

:23:56.:24:00.

general Flint, his national security adviser, we are incredibly vested in

:24:01.:24:05.

seeing our Sunni allies in the region come together in a real

:24:06.:24:12.

coalition. The so-called vaunted 66 nation coalition that was created

:24:13.:24:18.

under the Obama administration... There was no coalition. But we want

:24:19.:24:22.

to help our Sunni allies, especially the Egyptians, the Jordanians, come

:24:23.:24:30.

together in a real partnership to take the fight to ISIS and groups

:24:31.:24:37.

like Al-Qaeda. But there is not a formal multilateral alliance with

:24:38.:24:42.

these countries. Which of the existing, formal multilateral

:24:43.:24:46.

alliances does Mr Trump wants to strengthen? If you are specifically

:24:47.:24:50.

talking about Nato, it is clear that we are committed to Nato but we wish

:24:51.:24:55.

to see a more equitable burden sharing among the nations that are

:24:56.:24:58.

simply not spending enough on their own defence so the gentleman 's

:24:59.:25:03.

agreement of 2% of GDP has to be stuck to, unlike the, I think it's

:25:04.:25:07.

only Six Nations that reach the standard today out of almost 30. So

:25:08.:25:11.

he does want to strengthen Nato then? Absolutely, he believes Nato

:25:12.:25:23.

is the most successful military alliances. You mustn't believe the

:25:24.:25:29.

spin and hype. EU leaders now see the Trump administration as a threat

:25:30.:25:33.

up there with Russia, China, terrorism. What's your response to

:25:34.:25:40.

that? I have to laugh. The idea that the nation that came to the

:25:41.:25:45.

salvation of Europe twice in the 20th century hummer in World War I

:25:46.:25:52.

and World War II, was central to the defeat of the totalitarian... It is

:25:53.:26:03.

not even worth commenting on. Would it matter to the Trump

:26:04.:26:07.

administration if the European Union broke up? The United States is very

:26:08.:26:10.

interested in the best relations possible with all the nations of the

:26:11.:26:18.

EU am a whether the European union wishes to stay together or not is up

:26:19.:26:23.

to the nations of the European Union. I understand that but I was

:26:24.:26:29.

wondering what the US view would be. Until Mr Trump, EU foreign policy

:26:30.:26:33.

was quite consistent in wanting to see the EU survive, prosper and even

:26:34.:26:38.

become more integrated. Now that doesn't seem to be the case, so

:26:39.:26:42.

would it matter to the Trump administration if the EU broke up? I

:26:43.:26:47.

will say yet again, it is in the interests of the United States to

:26:48.:26:50.

have the best relations possible with our European allies, and

:26:51.:26:55.

whether that is in the formation of the EU or if the EU by itself

:26:56.:26:59.

suffers some kind of internal issues, that's up to the European

:27:00.:27:03.

nations and not something we will comment on. Listening to that

:27:04.:27:08.

answer, it would seem as if this particular president's preference is

:27:09.:27:13.

to deal with individual nation states rather than multilateral

:27:14.:27:18.

institutions. Is that fair? I don't think so. There's never been an

:27:19.:27:25.

unequivocal statement by that effect by the statement. Does he share the

:27:26.:27:29.

opinion of Stephen Bannon that the 21st century should see a return to

:27:30.:27:34.

nation states rather than growing existing multilateral ways? I think

:27:35.:27:40.

it is fair to say that we have problems with political elites that

:27:41.:27:43.

don't take the interests of the populations they represent into

:27:44.:27:49.

account. That's why Brexit happened. I think that's why Mr Trump became

:27:50.:27:54.

President Trump. This is the connected phenomena. You are

:27:55.:27:58.

obsessing about institutions, it is not about institutions, it's about

:27:59.:28:02.

the health of democracy and whether political elites do what is in the

:28:03.:28:07.

interests of the people they represent. Given the

:28:08.:28:10.

unpredictability of the new president, you never really know

:28:11.:28:13.

what he's going to do next, would it be wise for the British Prime

:28:14.:28:18.

Minister to hitch her wagon to his star? This is really churlish

:28:19.:28:25.

questioning. Come on, you don't know what he's going to do next, listen

:28:26.:28:28.

to what he says because he does what he's going to say. I know this may

:28:29.:28:34.

be shocking to some reporters, but look at his campaign promises, and

:28:35.:28:38.

the fact that in the last 15 days we have executed every single one that

:28:39.:28:44.

we could in the time permissible so there is nothing unpredictable about

:28:45.:28:49.

Donald Trump as president. OK then, if we do know what he's going to do

:28:50.:28:55.

next, what is he going to do next? Continue to make good on his

:28:56.:28:59.

election promises, to make America great again, to make the economy are

:29:00.:29:06.

flourishing economy, and most important of all from your

:29:07.:29:10.

perspective in the UK, to be the best friend possible to our friends

:29:11.:29:14.

and the worst enemy to our enemies. It is an old Marine Corps phrase and

:29:15.:29:20.

we tend to live by it. Thank you for your time, we will leave it there.

:29:21.:29:27.

Doctor Gorka, making it clear this administration won't spend political

:29:28.:29:34.

capital on trying to keep the European Union together, a watershed

:29:35.:29:36.

change in American foreign policy. Theresa May has made a big deal out

:29:37.:29:38.

of her commitment to help people on middle incomes who are "just

:29:39.:29:42.

about managing", and early this week we should get a good sense

:29:43.:29:45.

of what that means in practice - when plans to bring down the cost

:29:46.:29:48.

of housing and protect renters are published in the Government's

:29:49.:29:51.

new white paper. The paper is expected to introduce

:29:52.:29:52.

new rules on building Communities Secretary Sajid Javid

:29:53.:29:55.

has previously said politicians should not stand in the way

:29:56.:30:01.

of development, provided all options Also rumoured are new measures

:30:02.:30:03.

to speed up building the 1 million new homes the Government promised

:30:04.:30:08.

to build by 2020, including imposing five-year quotas

:30:09.:30:10.

on reluctant councils. Reports suggest there will be

:30:11.:30:14.

relaxation of building height restrictions,

:30:15.:30:16.

allowing home owners and developers to build to the height

:30:17.:30:18.

of the tallest building on the block without needing to seek

:30:19.:30:21.

planning permission. Other elements trialled include

:30:22.:30:27.

new measures to stop developers sitting on parcels of land

:30:28.:30:30.

without building homes, land banking, and moving railway

:30:31.:30:32.

station car parks Underground, The Government today said it

:30:33.:30:35.

will amend planning rules so more homes can be built specifically

:30:36.:30:43.

to be rented out through longer term tenancies, to provide more stability

:30:44.:30:46.

for young families, alongside its proposed ban

:30:47.:30:48.

on letting agent fees. And the Housing Minister,

:30:49.:30:55.

Gavin Barwell, joins me now. Welcome to the programme. Home

:30:56.:31:05.

ownership is now beyond the reach of most young people. You are now

:31:06.:31:08.

emphasising affordable homes for rent. Why have you given up on the

:31:09.:31:13.

Tory dream of a property owning democracy? We haven't given up on

:31:14.:31:16.

that. The decline on home ownership in this country started in 2004. So

:31:17.:31:21.

far we have stopped that decline, we haven't reversed it but we

:31:22.:31:24.

absolutely want to make sure that people who want to own and can do

:31:25.:31:30.

so. The Prime Minister was very clear a country that works for

:31:31.:31:33.

everyone. That means we have to have say something to say to those who

:31:34.:31:36.

want to rent as well as on. Home ownership of young people is 35%,

:31:37.:31:41.

used to be 60%. Are you telling me during the lifetime of this

:31:42.:31:46.

government that is going to rise? We want to reverse the decline. We have

:31:47.:31:50.

stabilised it. The decline started in 2004 under Labour. They weren't

:31:51.:31:54.

bothered about it. We have taken action and that has stop the

:31:55.:31:59.

decline... What about the rise? We have to make sure people work hard

:32:00.:32:03.

the right thing have the chance to own their home on home. We have

:32:04.:32:07.

helped people through help to buy, shared ownership, that is part of

:32:08.:32:11.

it, but we have to have something to say to those who want to rent. You

:32:12.:32:15.

say you want more rented homes so why did you introduce a 3%

:32:16.:32:21.

additional stamp duty levied to pay those investing in build to rent

:32:22.:32:25.

properties? That was basically to try and stop a lot of the

:32:26.:32:29.

speculation in the buy to let market. The Bank of England raised

:32:30.:32:32.

concerns about that. When you see the white paper, you will see there

:32:33.:32:37.

is a package of measures for Bill to rent, trying to get institutional

:32:38.:32:44.

investment for that, different to people going and buying a home on

:32:45.:32:48.

the private market and renting out. You are trying to get institutional

:32:49.:32:52.

money to comment, just as this government and subsequent ones

:32:53.:32:55.

before said it would get pension fund money to invest in

:32:56.:32:58.

infrastructure and it never happened. Why should this happen? Is

:32:59.:33:03.

already starting to happen. If you go around the country you can see

:33:04.:33:06.

some of these builder rent scheme is happening. There are changes in the

:33:07.:33:10.

White Paper... How much money from institutions is going into bill to

:33:11.:33:21.

rent modular hundreds of millions. I was at the stock exchange the other

:33:22.:33:24.

day celebrating the launch of one of our bombs designed to get this money

:33:25.:33:26.

on. There are schemes being... There is huge potential to expand it. We

:33:27.:33:29.

need more homes and we are too dependent on a small number of large

:33:30.:33:32.

developers. -- to launch one of our bonds. You talk about affordable

:33:33.:33:39.

renting, what is affordable? Defined as something that is at least 20%

:33:40.:33:45.

below the market price. It will vary around the country. Let me put it

:33:46.:33:49.

another way. The average couple renting now have to spend 50% of

:33:50.:33:54.

their income on rent. Is that affordable? That is exactly what

:33:55.:33:57.

we're trying to do something about. Whether you're trying to buy or

:33:58.:34:00.

rent, housing in this country has become less and less affordable

:34:01.:34:04.

because the 30-40 years governments haven't built in times. This white

:34:05.:34:08.

Paper is trying to do something about that. You have been in power

:34:09.:34:12.

six, almost seven years. That's right. Why are ownership of new

:34:13.:34:20.

homes to 24 year low? It was a low figure because it's a new five-year

:34:21.:34:23.

programme. That is not a great excuse. It's not an excuse at all.

:34:24.:34:28.

The way these things work, you have a five-year programme and in the

:34:29.:34:31.

last year you have a record number of delivery and when you start a new

:34:32.:34:34.

programme, a lower level. If you look at the average over six years,

:34:35.:34:38.

this government has built more affordable housing than the previous

:34:39.:34:44.

one. Stiletto 24 year loss, that is an embarrassment. Yes. We have the

:34:45.:34:50.

figures, last year was 32,000, the year before 60 6000. You get this

:34:51.:34:53.

cliff edge effect. It is embarrassing and we want to stop it

:34:54.:34:59.

happening in the future. You want to give tenants more secure and longer

:35:00.:35:03.

leases which rent rises are predictable in advance. Ed Miliband

:35:04.:35:09.

promoted three-year tenancies in the 2015 general election campaign and

:35:10.:35:13.

George Osborne said it was totally economically illiterate. What's

:35:14.:35:18.

changed? You are merging control of the rents people in charge, which

:35:19.:35:23.

we're not imposing. We want longer term tenancies. Most people have

:35:24.:35:28.

six-month tenancies... Within that there would be a control on how much

:35:29.:35:32.

the rent could go up? Right? It would be set for the period of the

:35:33.:35:36.

tenancies. That's what I just said, that's what Ed Miliband proposed. Ed

:35:37.:35:41.

Miliband proposed regulating it for the whole sector. One of the reasons

:35:42.:35:46.

institutional investment is so attractive, if you had a spare home

:35:47.:35:50.

and you want to rent out, you might need it any year, so you give it a

:35:51.:35:54.

short tenancy. If you have a block, they are interested in a long-term

:35:55.:35:59.

return and give families more security. You have set a target,

:36:00.:36:06.

your government, to build in the life of this parliament 1 million

:36:07.:36:09.

new homes in England by 2020. You're not going to make that? I think we

:36:10.:36:17.

are. If you look at 2015-16 we had 190,000 additional homes of this

:36:18.:36:20.

country. Just below the level we need to achieve. Over five...

:36:21.:36:28.

2015-16. You were probably looking at the new homes built. Talking

:36:29.:36:34.

about completions in England. That is not the best measure, with

:36:35.:36:38.

respect. You said you will complete 1 million homes by 2020 so what is

:36:39.:36:43.

wrong with it? We use a national statistic which looks at new homes

:36:44.:36:47.

built and conversions and changes of use minus demolitions. The total

:36:48.:36:50.

change of the housing stock over that year. On that basis I have the

:36:51.:36:56.

figures here. I have the figures. You looking I just completed. 1

:36:57.:37:01.

million new homes, the average rate of those built in the last three

:37:02.:37:06.

quarters was 30 6000. You have 14 more quarters to get to the 1

:37:07.:37:10.

million. You have to raise that to 50 6000. I put it to you, you won't

:37:11.:37:15.

do it. You're not looking at the full picture of new housing in this

:37:16.:37:19.

country. You're looking at brand-new homes and not including conversions

:37:20.:37:23.

or changes of use are not taking off, which we should, demolitions.

:37:24.:37:28.

If you look at the National statistic net additions, in 2015-16,

:37:29.:37:34.

100 and 90,000 new homes. We are behind schedule. -- 190,000. I am

:37:35.:37:39.

confident with the measures in the White Paper we can achieve that. It

:37:40.:37:43.

is not just about the national total, we need to build these homes

:37:44.:37:47.

are the right places. Will the green belt remain sacrosanct after the

:37:48.:37:54.

white paper? Not proposing to change the existing protections that there

:37:55.:37:57.

for green belts. What planning policy says is councils can remove

:37:58.:38:02.

land from green belts but only in exceptional circumstances and should

:38:03.:38:04.

look at at all the circumstances before doing that. No change? No. We

:38:05.:38:10.

have a manifesto commitment. You still think you will get 1 million

:38:11.:38:16.

homes? The green belt is only 15%. This idea we can only fix our broken

:38:17.:38:20.

housing market by taking huge swathes of land out of the green

:38:21.:38:23.

belt is not true. We will leave it there, thank you for joining us,

:38:24.:38:26.

Gavin Barwell. It is coming up to 11.40.

:38:27.:38:28.

We say goodbye to viewers in Scotland, who leave us now

:38:29.:38:31.

Coming up here in 20 minutes, the Week Ahead...

:38:32.:01:33.

have do stop that and do another programme at another time an airport

:01:34.:01:37.

expansion, but thank you to both of you for being here. Back to you,

:01:38.:01:38.

Andrew. Will the Government's plan

:01:39.:01:43.

to boost house-building Could a handful of Conservative

:01:44.:01:47.

MPs cause problems for And what is President

:01:48.:01:50.

Trump going to do next? You have been following the genesis

:01:51.:02:09.

of this housing white paper. What do you make of it? I think it will be

:02:10.:02:13.

quite spectacular, pretty radical stuff. We heard bits about beating

:02:14.:02:20.

up on developers. I understand it will be a whack, walk, covering

:02:21.:02:23.

every single problem with housing supply and trying to solve it. Which

:02:24.:02:29.

means bad news if you are a huge fan of the green belt, because they will

:02:30.:02:32.

go round that the other way by forcing large quotas on councils are

:02:33.:02:35.

making it down to councils where they build. If you fill up your

:02:36.:02:41.

brown space in towns they will have to trigger the exceptional

:02:42.:02:44.

circumstances bit of the bill to beat on green belts. Beating up

:02:45.:02:48.

developers, opening up the market for renters across the board. And

:02:49.:02:53.

Theresa May, one of the most defining thing she could do on the

:02:54.:02:57.

domestic agenda. I am not as excited as Tom about this. I look back to

:02:58.:03:03.

2004, do you remember the Kate Barker report? Successive

:03:04.:03:08.

governments, successive prime ministers have been promising to

:03:09.:03:16.

address the housing shortage. In 2004 Kate Barker recommended

:03:17.:03:18.

hundreds of thousands new homes. Gordon Brown talked about 3 million

:03:19.:03:24.

new homes by 2020 in 2007. It never happens. The reason is at the end of

:03:25.:03:29.

the day this is local politics, local councillors need to keep their

:03:30.:03:31.

seats and they won't keep their seats if there are hugely

:03:32.:03:33.

controversial developments locally that they support. Yes, the

:03:34.:03:39.

government can and are proposing to overrule councils that don't back

:03:40.:03:44.

local developments, but they may find themselves completely inundated

:03:45.:03:47.

with those cases. I think that is the whole point of it, to take on

:03:48.:03:52.

those NIMBY often Tory councils and force them to build. I can't think

:03:53.:04:01.

of a better defining issue for Theresa May than sticking one in the

:04:02.:04:05.

eye of some quite well off half Tory countryside councils. The government

:04:06.:04:11.

gives councils a quota of homes they have to fill, if they don't have to

:04:12.:04:15.

fill that all run out overland to fill the quota, the government then

:04:16.:04:19.

comes in and tells them they have to built on the green belt? How is that

:04:20.:04:23.

going to work? At the moment the green belt is absolutely sacrosanct

:04:24.:04:26.

in British politics. They'll have to do some work on educating people on

:04:27.:04:33.

what green belts means. Potato farms, golf courses... At the moment

:04:34.:04:38.

the idea people have of the green belt being verdant fields needs to

:04:39.:04:42.

be dismantled. You are right. I agree with Tom, 11 million people in

:04:43.:04:47.

the private rental sector in the UK. In the last election more voted

:04:48.:04:50.

Labour than conservative. This is an area where Theresa May would look to

:04:51.:04:54.

expand her vote. The problem has always been, the same problem we

:04:55.:04:58.

have with pension policy and why pensioners have done better than

:04:59.:05:03.

working families in recent years. They are older and they vote more

:05:04.:05:08.

and anything to the detriment of older people. I wonder how they will

:05:09.:05:15.

get private money to come in on anything like this go they would

:05:16.:05:19.

need to have a huge expansion? There is a huge amount of speculation and

:05:20.:05:24.

one of the thing that locks up the system as you have people buying

:05:25.:05:27.

land, taking out a stake of land in the hope that one point it may at

:05:28.:05:32.

some point free up. At the end of the day, unless you have councils

:05:33.:05:36.

far more willing to quickly fast track these applications, which they

:05:37.:05:40.

won't for the reason I said before, it's a very long-term investment. Ed

:05:41.:05:45.

Miliband proposed three-year leases in which the rent could only go up

:05:46.:05:50.

by an agreed formula, probably the three years to give the young

:05:51.:05:55.

families a certain stability over that period. He had a use it or lose

:05:56.:06:00.

it rules for planning development, if you don't use it you lose the

:06:01.:06:04.

planning rights. Somebody else gets it. The Tories disparaged that at

:06:05.:06:08.

the time. This is at the centre of their policy now.

:06:09.:06:14.

This is probably item number four of Ed Miliband's policy book Theresa

:06:15.:06:17.

May has wholesale pinched in the last six months or so. Why not? I

:06:18.:06:22.

think if you look at the change in mood across housing and planning

:06:23.:06:26.

over the last 5-6 years, it used to be an issue very much of green belt

:06:27.:06:31.

versus London planners. Now you have grandparents living in houses in the

:06:32.:06:34.

countryside, knowing their grandchildren can't get on the

:06:35.:06:37.

housing ladder any longer. Maybe a bit more intervention in the market,

:06:38.:06:43.

tougher on renting conditions, maybe that is exactly what the country

:06:44.:06:46.

needs. Will they meet the 1 million target? It would be a defiance of

:06:47.:06:52.

every political thing that has happened in the last ten years. I

:06:53.:06:57.

think Tom is right, if there is only one difference between Theresa May

:06:58.:07:00.

and David Cameron it's the willingness of the state to

:07:01.:07:05.

intervene. When Ed Miliband said that he was seen as communism, but

:07:06.:07:10.

Theresa May can get away with it. How serious is this talk of a couple

:07:11.:07:17.

of dozen Tories who were very loyal over voting for the principle of

:07:18.:07:22.

Article 50 but may now be tempted to vote for some amendments to Article

:07:23.:07:26.

50 legislation that they would find quite attractive? I think that

:07:27.:07:30.

threat has certainly been taken seriously by levers. I spoke to the

:07:31.:07:37.

campaign group Leaves Means Leave last night. The figure they

:07:38.:07:41.

mentioned was up to 20 remaining Tories. That sounds a lot to me but

:07:42.:07:44.

that is what they are concerned about and those Tories would come

:07:45.:07:49.

together with Labour and the SNP to vote for that amendment. Although

:07:50.:07:53.

that amendment sounds rather nice and democratic, actually in the eyes

:07:54.:07:58.

of many levers that is a wrecking amendment. Because what you are

:07:59.:08:02.

doing is giving Parliament a sort of veto over whatever deal Theresa May

:08:03.:08:06.

brings back. What they want is the vote to be before that deal is

:08:07.:08:10.

finalised. It isn't necessarily the case that if Parliament decided they

:08:11.:08:14.

didn't like that deal we would just go to WTO, we would fall out of the

:08:15.:08:18.

European Union. There are mixed views as to whether we might remain

:08:19.:08:24.

in and things could be extended. My understanding is the people making

:08:25.:08:29.

the amendments, they won any deal that is done to be brought to

:08:30.:08:33.

Parliament in time, so that if Parliament fancies it it's done, but

:08:34.:08:39.

if it does and it doesn't just mean go to WTO rules. There will be time

:08:40.:08:43.

to go back, renegotiate or think again? The question is where it puts

:08:44.:08:48.

Britain's negotiating hand. Nine of the options... Once we trigger

:08:49.:08:56.

Article 50 the two negotiation begins on the power switches to

:08:57.:08:59.

Europe. They can run out the clock and it will be worse for us than

:09:00.:09:02.

them. I don't think either option is particularly appealing. I think what

:09:03.:09:07.

seems like a rather Serena week for Article 50 this week isn't going to

:09:08.:09:10.

be reflective of what will happen next. The way the government's

:09:11.:09:15.

position is at the moment, if at the end the only choice Parliament has

:09:16.:09:19.

is to vote for the deal or crash out on WTO rules, then even the

:09:20.:09:23.

remainder is going to vote for the deal even if they don't like it,

:09:24.:09:27.

because they would regard crashing out as the worst of all possible

:09:28.:09:33.

results. Possibly. It will be a great game of bluff if Theresa May

:09:34.:09:37.

fights off any of these amendments on Wednesday and gets a

:09:38.:09:39.

straightforward deal or no Deal vote. I have a funny feeling this

:09:40.:09:43.

amendment, if it's chosen, we must remember because we don't know if

:09:44.:09:47.

they will choose this amendment, if it does go to a vote on Wednesday it

:09:48.:09:53.

will be very tight indeed. Remember, one final thing Theresa May can do

:09:54.:09:56.

if she gets Parliament voting against, as Isabel would have it,

:09:57.:10:02.

she could try to get a new parliament and go for a general

:10:03.:10:06.

election. And probably get a huge majority to do so. The Lords, it

:10:07.:10:12.

goes there after the February recess. They are very pro-Europe,

:10:13.:10:22.

but does their instinct for self-preservation override that? I

:10:23.:10:28.

think that is it. A Tory Lord said this morning I will vote to block it

:10:29.:10:31.

on a conscience measure, but you have the likes of Bill Cash, veteran

:10:32.:10:37.

Eurosceptics, suddenly converted to the Lords reform saying is an

:10:38.:10:41.

outrage. I doubt they will vote for their own demise, to hasten their

:10:42.:10:44.

own demise by blocking it. What did you make of Doctor Gorka smart

:10:45.:10:52.

fascinating. Cut from the same cloth as his boss. I thought it was

:10:53.:10:55.

extraordinary listening to him, saying everything is going dutifully

:10:56.:10:59.

to plan. But at the end of the day, what they are doing is what people

:11:00.:11:03.

in America voted for Trump to do. If you look at Lord Ashcroft's polling

:11:04.:11:07.

on why America voted for Trump, they went into this with their eyes wide

:11:08.:11:11.

open. One of the top fears among American voters, particularly

:11:12.:11:17.

Republican leading ones was America's immigration policy is or

:11:18.:11:20.

could be letting in terror arrests. As far as he is concerned, he is

:11:21.:11:24.

doing what he was elected to do. This whole year is turning into a

:11:25.:11:28.

wonderful year long lecture series on how democracy works at a

:11:29.:11:31.

fundamental level. I'm not sure anyone wanted it but it's what we've

:11:32.:11:35.

got. This same in the way we've been talking about direct democracy and

:11:36.:11:40.

Parliamentary democracy. The same is happening in America between

:11:41.:11:45.

executive and judicial branches. We are seeing the limits of

:11:46.:11:49.

presidential power. Regardless of the fact that people voted for Trump

:11:50.:11:52.

they voted for senators. The judge who blocks this was appointed by

:11:53.:11:58.

George W Bush. So-called Judge Eckert Mac so-called George W Bush!

:11:59.:12:03.

It's fascinating we're having all these conversations now that I never

:12:04.:12:06.

bought five years ago we would be having at such a fundamental level.

:12:07.:12:11.

Has the media yet worked out how to cover the Trump administration or

:12:12.:12:15.

has he got us behaving like headless chickens? He says something

:12:16.:12:21.

incendiary and we all run over to do that and when you pick it off it

:12:22.:12:26.

turns out not to be as incendiary as we thought? And then back doing

:12:27.:12:29.

something and we all rush over there. Is he making fools of us? Is

:12:30.:12:35.

exactly what he did in the election campaign. So many quick and fast

:12:36.:12:39.

outrageous comments frontrunner on a daily basis, no one single one of

:12:40.:12:43.

them had full news cycle time to be pored over and examined. I think

:12:44.:12:47.

there is a problem with this. Although he keeps the upper hand,

:12:48.:12:52.

keeps the agenda and keeps on the populist ground, the problem is it

:12:53.:12:56.

easy to campaign like that. If you are governing in a state of

:12:57.:12:59.

semi-hysteria, I wonder how long the American public will be comfortable

:13:00.:13:02.

with that. They don't really want their government to be swirling

:13:03.:13:05.

chaos all the time, as fascinating as it might be on TV. They will be

:13:06.:13:10.

exhausted by it, I already am. I have been interviewing White House

:13:11.:13:16.

administration official since 1976 and that is the first time someone

:13:17.:13:20.

hasn't given me a straight answer on America supporting the EU. That is a

:13:21.:13:21.

different world. Jo Coburn will be on BBC Two

:13:22.:13:23.

tomorrow at midday with the Daily Politics -

:13:24.:13:27.

and I'll be back here Remember, if it's Sunday -

:13:28.:13:29.

it's the Sunday Politics. TV: He's not your father.

:13:30.:14:08.

WOMAN GASPS

:14:09.:14:22.

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