16/02/2014

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:00:34. > :00:40.The rain, it falls upon the just, and also on the unjust fella. But

:00:41. > :00:45.mostly on the just, cos the unjust's got the just's umbrella. We keep

:00:46. > :00:51.being told that Britain is a divided country, north and south, rich and

:00:52. > :00:56.poor. Town and countryside. Today the important divide is between the

:00:57. > :00:59.smug dry and the poor sodden. And joining me today for our review of

:01:00. > :01:02.the Sunday newspapers, Sarah Sands, editor of London's Evening Standard

:01:03. > :01:06.and Nathalie Bennett, leader of the Green Party.

:01:07. > :01:10.Before the downpour there was of course the crash. Now there's a kind

:01:11. > :01:14.of recovery. Yet the man with probably the greatest influence over

:01:15. > :01:18.the state of all our finances is not a politician, and not British but

:01:19. > :01:22.Canadian. In a rare and exclusive interview, I've been talking to the

:01:23. > :01:25.Governor of the Bank of England Mark Carney. How long can he keep

:01:26. > :01:29.interest rates low? What's his take on the recovery, and the housing

:01:30. > :01:32.market? And what about the Scots and the pound? Lots of criticism in

:01:33. > :01:35.today's papers about the Government's response to the floods.

:01:36. > :01:42.The Defence Secretary Philip Hammond, the man who sent in the

:01:43. > :01:45.troops, is here to reply. Also this morning: We'll be talking about the

:01:46. > :01:48.future of Britain in Europe in another rare interview, this time

:01:49. > :01:52.with the man Britain's eurosceptics love to hate, commission President

:01:53. > :01:55.himself Jose Manuel Barroso. Then art and an old fashioned war movie

:01:56. > :01:59.about saving culture from Hitler's clutches. Director and actor George

:02:00. > :02:07.Clooney has been telling me about his new release.

:02:08. > :02:14.In Hollywood we do like to tell a World War II story. I think England

:02:15. > :02:21.has some of the same things. It's a fairly clear good guy, bad guy kind

:02:22. > :02:25.of thing. And from one George to another we'll be serenaded later by

:02:26. > :02:27.Boy George, a wild man for many years but these days a calmer

:02:28. > :02:29.chameleon. Busy old morning. Let's crack on

:02:30. > :02:37.with the news, from Naga Munchetty. Good morning. Severe flood warnings

:02:38. > :02:41.remain in place across southern England. Tens of thousands of homes

:02:42. > :02:44.and businesses are waking up without power and river levels are still

:02:45. > :02:48.expected to rise. It's been confirmed almost 1 million

:02:49. > :02:50.properties have been cut off in the past week. Around 30,000 homes and

:02:51. > :02:53.businesses are still without power with engineers working into the

:02:54. > :02:57.night. 16 severe flood warnings, meaning a risk to life, have been

:02:58. > :03:00.issued, many of them affecting areas close to the River Thames with the

:03:01. > :03:03.others on the Somerset Level. Jonathan Blake reports on the latest

:03:04. > :03:06.situation. Battered and broken. Shipping

:03:07. > :03:11.containers put down to protect the sea wall at Dawlish in Devon, no

:03:12. > :03:14.match for the power of the waves. Trees blocked roads and railway

:03:15. > :03:21.lines, the effects of the third big storm in a week becoming clear. The

:03:22. > :03:24.ground opened up in Hertfordshire. A 20 foot deep sinkhole, appearing

:03:25. > :03:29.outside a house in Hemel Hempstead. I just had some police knocking on

:03:30. > :03:33.the door at 7:30 to say you need to evacuate, there's a sinkhole

:03:34. > :03:38.outside. I didn't get in time to grab anything, not even my purse or

:03:39. > :03:41.clothes, we just had to get out. Power companies say almost one

:03:42. > :03:46.million homes and businesses have lost electricity over the last seven

:03:47. > :03:52.days. Around 30,000 are still cut off. 3,000 troops are helping people

:03:53. > :03:57.in the worst affected areas. The Prime Minister has again defended

:03:58. > :04:00.the Government's response. I think we've a huge, joined up national

:04:01. > :04:05.effort and we've stood up proper emergency service responses in every

:04:06. > :04:10.part of the country affected. But, of course, there are always lessons

:04:11. > :04:13.to be learned. The rain may have stopped and the winds died down, but

:04:14. > :04:16.rivers are still high and rising, severe flood warnings remain in

:04:17. > :04:23.place for the River Thames and Somerset Levels. The recent storms

:04:24. > :04:25.have been ferocious. They have claimed lives and destroyed homes.

:04:26. > :04:38.For some, the worst may not be over. Scientists in America is a domain

:04:39. > :04:45.system which determines the world's weather might be changing. A study

:04:46. > :04:47.presented at the American Association for the Advancement of

:04:48. > :04:49.Science shows the jet stream has been taking a more meandering path,

:04:50. > :04:55.resulting in whether remaining the same for longer. The Foreign

:04:56. > :04:59.Secretary William Hague has described the collapse of the latest

:05:00. > :05:02.round of Syrian peace talks as a serious setback. He blamed the

:05:03. > :05:06.breakdown on President Assad's regime. The Syrian government's side

:05:07. > :05:11.held the opposition responsible for the failure. Activists say that

:05:12. > :05:15.nearly 6000 people have been killed in the country since the first round

:05:16. > :05:18.of negotiations began last month. The UK's answer to the Oscars takes

:05:19. > :05:25.place later, with more Hollywood stars than ever expected to turn up.

:05:26. > :05:31.Cosmic buster Gravity and drama 12 Years A Slave are widely expected to

:05:32. > :05:35.be the big winners. Prince William will also attend. It's the last

:05:36. > :05:37.major film awards before the Oscars next month. That's all from me, for

:05:38. > :05:51.now. The Observer says Ed Miliband says

:05:52. > :05:54.the storms are all about climate change and we are sleepwalking into

:05:55. > :06:00.a national emergency. The Sunday Times has Labour candidates telling

:06:01. > :06:06.Ed Miliband to hug bankers. And an interesting story about jihadists

:06:07. > :06:13.coming back from Syria. Also a new picture of our new heroine, and a

:06:14. > :06:18.picture of our old heroine, Helen Mirren, pursuing the NHS theme, with

:06:19. > :06:23.stories of doctors being paid ?3000 a shift, not bad money. The

:06:24. > :06:31.Independent on Sunday, Lizzie Yardley. On her tea tray. Welcome to

:06:32. > :06:36.you both. Sarah, your first story, I think we are going to pick up the

:06:37. > :06:41.Sunday Times jihadists story. It worries everybody? We have been

:06:42. > :06:44.doing a lot on this in the Evening Standard. It is because the

:06:45. > :06:51.counterterrorism unit is very concerned about the number of young

:06:52. > :06:54.Brits that go out to Turkey, Syria, join up with extreme opposition

:06:55. > :07:01.forces and come back really as a terrorist time bomb. We saw the

:07:02. > :07:04.first suicide bomber. A mild-mannered fellow from Crawley,

:07:05. > :07:22.that turns out to be a suicide bomber? Yes. The mild-mannered man

:07:23. > :07:26.was in fact tutored by an extreme clarity. This story is about how

:07:27. > :07:34.Facebook and Twitter are doing well at recruiting extremists is.

:07:35. > :07:38.Natalie, what is your first story? I started with the Observer, they have

:07:39. > :07:43.a disturbing story about how the Republic of Congo, the Ministry of

:07:44. > :07:47.interior document, saying that the officials should be particularly on

:07:48. > :07:52.the lookout for refugees returning from Europe, the UK, and that they

:07:53. > :07:57.should be looking to imprison them. They should, with discretion, use

:07:58. > :07:59.torture against them. This is particularly disturbing because the

:08:00. > :08:03.Observer has found the British government seems to be rounding up

:08:04. > :08:08.Congolese refugees and planning to return them to the Congo, which is

:08:09. > :08:13.obviously a cause for concern. It is a new story to me, and I expect to

:08:14. > :08:17.many people watching? Yes, I think we need to look at if we are meeting

:08:18. > :08:22.our obligations in terms of providing asylum to refugees. We had

:08:23. > :08:29.now to the Wythenshawe by-election in Manchester? Yes. I'm interested

:08:30. > :08:35.in this because of the question of what you do with a problem like

:08:36. > :08:40.Nigel Farage. What the Tories are doing. David Cameron, this is James

:08:41. > :08:44.Forsyth and the Mail on Sunday, he says that Cameron's view is to

:08:45. > :08:51.ignore him, Nick Clegg says go and fight. Cameron says he will ignore

:08:52. > :08:57.him, but he has sent in Bozza, happy to pile into the scrum. He's written

:08:58. > :09:05.a peace in the Sun on Sunday, the Tory message that if you vote UKIP

:09:06. > :09:09.you get Ed Miliband, that he is a useful idiot for Ed Miliband. A key

:09:10. > :09:13.phrases when he refers to the Tory election. We know he has an interest

:09:14. > :09:19.in this. Calling upon David Cameron to appoint Boris as his Deputy Prime

:09:20. > :09:25.Minister, bring him back into the tent? That is Nadine Dorries, yes.

:09:26. > :09:30.Not yet, he has to in his passage, I suppose. The neck stories also

:09:31. > :09:34.British politics, the bedroom tax? This is from the Sunday people,

:09:35. > :09:39.celebrating eight tribunal victory were, in Rochdale, Greater

:09:40. > :09:41.Manchester, the tribunal has ruled that somebody has been using a

:09:42. > :09:46.dining room as a dining room four years, it is not an extra bedroom,

:09:47. > :09:50.it is a dining room. It's a reminder of how much it is hurting people

:09:51. > :09:55.throughout the country. Before we get into living conditions? If you

:09:56. > :10:00.use what some people might think of as a bedroom to store dialysis

:10:01. > :10:04.machines or other equipment, this is a medical room. It is a positive

:10:05. > :10:08.step forward in tackling this pernicious tax. On to your next

:10:09. > :10:16.story, which I think is about Helen Mirren? You mentioned her, she has

:10:17. > :10:20.given an interview where she seems to side with David Hare, saying she

:10:21. > :10:26.is worried about some of the violence in some of the TV violence

:10:27. > :10:33.-- programmes that we love. Particularly against women. We start

:10:34. > :10:38.to see them like football goals, we just keep counting them up. The plot

:10:39. > :10:41.is so preposterous to begin with in some of them, whether it is male or

:10:42. > :10:48.female getting knocked off, it is the least of our worries. In her

:10:49. > :10:53.time, she has been involved in some fairly gory television? Well, we all

:10:54. > :11:05.mellow as we get older. The next story, about generation C. Who is

:11:06. > :11:11.that? Young people born from the late 80s to 2000. More than half of

:11:12. > :11:15.them are raising money for charity, huge numbers involved in

:11:16. > :11:18.volunteering and very involved in social issues. Very different from

:11:19. > :11:23.what we usually hear about young people, more accurate, in my

:11:24. > :11:32.opinion. Young people are nice, Schalke. London Fashion Week, have

:11:33. > :11:36.the terrible storms affected that? I think we have to mention London

:11:37. > :11:43.Fashion Week, battling through. Totally unsuitable shoes, but they

:11:44. > :11:48.are keeping going. Because of the fashion calendar, they are looking

:11:49. > :11:51.at the Winter collection. I was in a taxi this week, passing a stream of

:11:52. > :11:55.people wearing nothing but high heeled shoes and ridiculous hats,

:11:56. > :12:02.nothing in between, in a storm. Aren't they marvellous? So, to the

:12:03. > :12:05.floods. A huge row at the moment, the Green Party will be interested

:12:06. > :12:11.in this, whether climate change is or is not involved. Papers taking

:12:12. > :12:15.sides in an aggressive way? Very much so, but I think if we go to The

:12:16. > :12:18.Met office, the chief scientist said last week that all of the evidence

:12:19. > :12:24.points to climate change exacerbating the floods. All of the

:12:25. > :12:31.evidence speak, scientists speak for this is a fact. One of her number

:12:32. > :12:37.twos quoted the Mail on Sunday saying it ain't so? There is a

:12:38. > :12:41.survey in the Sunday Telegraph that says that 47% of it as people

:12:42. > :12:49.believe it is linked to climate change. 39% were not sure. So, we

:12:50. > :12:52.are really saying... The argument is shifting? A vast amount of coverage

:12:53. > :13:00.of this in the papers. Any new light shed on anything? Not that I can

:13:01. > :13:03.see, there is a media civil war. We have the Observer, Ed Miliband

:13:04. > :13:07.saying something is going on. We have all clocked that and we must

:13:08. > :13:12.take climate change seriously. In the Sunday Telegraph, nothing is

:13:13. > :13:17.going on apart from it is the EU waste disposal policy which means

:13:18. > :13:25.that we could not move the silt from rivers. So, a rather prosaic kind of

:13:26. > :13:28.solution. As you say, the Mail on Sunday has someone saying it is not

:13:29. > :13:39.global warming, it's the jet stream. If you straightforward, -- perfectly

:13:40. > :13:43.straightforward, will not shift. You are in the Green Party, you know it

:13:44. > :13:48.is climate change? I'm listening to the scientists. There are other

:13:49. > :13:51.papers looking at the jet stream, that it is behaving strangely. It is

:13:52. > :13:56.the jet stream, but it is behaving strangely and many scientists are

:13:57. > :13:59.licking up to a warmer Arctic. There are also issues around warmer seas

:14:00. > :14:01.in Indonesia have a warmer Arctic. There are also issues around warmer

:14:02. > :14:11.seas in Indonesia having big impacts. If you look around the

:14:12. > :14:16.world, Obama was in California, looking at issues linked to climate

:14:17. > :14:22.change. Philip Hammond is here. You put in the troops, 3000 so far? Over

:14:23. > :14:28.3000 currently deployed, thousands more in reserve if needed. This is

:14:29. > :14:32.the led. They can call on troops wherever they need them and we have

:14:33. > :14:37.plenty more troops in reserve. Do you think this is caused by climate

:14:38. > :14:41.change? Climate change is clearly happening, it is clearly a factor in

:14:42. > :14:45.whether at is that we are seeing. That is why we are investing

:14:46. > :14:50.significant amounts of money in increasing our flood resilience in

:14:51. > :14:53.the UK. These floods are a terrible tragedy for people that are

:14:54. > :14:57.affected, but we shouldn't forget that many hundreds of thousands of

:14:58. > :15:00.properties have been protected from flooding by the investment that has

:15:01. > :15:05.been made over the last two years. On the other hand, the government

:15:06. > :15:09.was told again and again by people in Somerset they needed to dredge,

:15:10. > :15:12.they needed to spend a lot more money on flood defences, the

:15:13. > :15:15.Government ignored this for quite a long time. Putting on Wellington

:15:16. > :15:20.boot 's now is not impressing the public much? We said clearly that

:15:21. > :15:23.the issue on the Somerset Levels is something we have to look at in

:15:24. > :15:28.slower time when this crisis is over. The policies that have been

:15:29. > :15:35.applied, a lot of questions marks have been raised. Definitely this

:15:36. > :15:39.needs to be looked at. It won't apply everywhere. The Somerset

:15:40. > :15:43.Levels is a man-made environment and, arguably, it needs to be

:15:44. > :15:51.maintained by human intervention, dredging. On the Thames, we have

:15:52. > :15:56.different factors. Including the fact we are carrying on building on

:15:57. > :15:59.flood plains. It seems the Government has been rather slow, and

:16:00. > :16:06.if you look at the opinion polls the Government is not popular in terms

:16:07. > :16:11.of its response. The response we are delivering is a proper response. We

:16:12. > :16:15.have been engaged since the beginning of the crisis, Cobra

:16:16. > :16:21.meetings have been held, but we are dealing with an extraordinary set of

:16:22. > :16:26.weather events and it has taken some time to mobilise the resources

:16:27. > :16:33.necessary. A lot of people, scientists, have been saying for

:16:34. > :16:36.years now that we will have more extreme weather events. Ed Miliband

:16:37. > :16:44.talks about rolling the dice and getting sixes all the time, and yet

:16:45. > :16:50.the Government has looked away from this and hoped it wouldn't happen. I

:16:51. > :16:53.don't think that is true. The guidance on building on flood plains

:16:54. > :16:58.is clear, but the whole of the Thames Valley is a flood plain and

:16:59. > :17:04.there has to be a proper balance. We have to avoid the highest flood risk

:17:05. > :17:08.areas, and when we do build in those areas we need to make sure the

:17:09. > :17:13.properties are built in a way that minimises the risk of flooding. Like

:17:14. > :17:19.everything in the real world, there is a balance to be struck and it is

:17:20. > :17:25.very easy to say today, because we are in the middle of this crisis,

:17:26. > :17:30.flood resilience is the only issue. It is important, but we have to

:17:31. > :17:37.balance economic growth, standards of living, flood resilience in the

:17:38. > :17:43.long term. Getting the troops in has helped a lot. With hindsight, should

:17:44. > :17:47.you have put the troops in earlier? We offered them a long time ago to

:17:48. > :17:52.civil authorities who wanted them. Over the last ten days we have

:17:53. > :18:00.pushed them more aggressively at those authorities and I think

:18:01. > :18:04.putting military liaison officers in, embedded in the system, is a

:18:05. > :18:10.major step forward and we will want to make sure in the future that we

:18:11. > :18:17.do that at an early stage. How many more troops are available if needed?

:18:18. > :18:22.We have about 5000 more troops that could be deployed. There is a lot of

:18:23. > :18:28.reconstruction to do, are we going to see the Royal Engineers

:18:29. > :18:32.involved? Yes, we have agreed with the Environment Agency we will use

:18:33. > :18:37.Royal Engineers to do a rapid inspection of all of the flood

:18:38. > :18:47.defences of the nation. We are going to try to do in five weeks what

:18:48. > :18:52.would normally be done in two years. This series of weather events over

:18:53. > :18:58.the last few months has caused some serious damage to the

:18:59. > :19:04.infrastructure, and we have got to assess that. Your own climate change

:19:05. > :19:10.adviser says we ought to be spending more on flood defences, is that

:19:11. > :19:14.true? We will be spending more in this four-year period than we did in

:19:15. > :19:22.the previous four-year period, but of course there has to be a proper

:19:23. > :19:25.balance of costs and benefits drawn. They're clearly needs to be

:19:26. > :19:32.continued investment in flood defences and we have achieved a

:19:33. > :19:40.great deal. In 2007, 50 5000 properties flooded. This event, we

:19:41. > :19:44.have seen somewhere in the region of 2500 - 3000 properties flooded and I

:19:45. > :19:48.think targeted investment will mean we become more and more resilient as

:19:49. > :19:55.events like this will probably become more and more common. The

:19:56. > :20:01.money we are spending on HS2 would give us some cracking flood

:20:02. > :20:10.defences, wouldn't it? We don't have to make these either/or choices. HS2

:20:11. > :20:14.is an important infrastructure investment for the future of Britain

:20:15. > :20:18.and makes an important contribution to dealing with carbon emissions,

:20:19. > :20:26.one of the drivers of climate change. We have to look at all of

:20:27. > :20:32.these things. Philip Hammond, thank you.

:20:33. > :20:37.Now to the weather, and you don't need me to tell you it's been

:20:38. > :20:40.miserable out there. After these past truly atrocious weeks, is there

:20:41. > :20:43.any sign of the storms blowing themselves out? Let's find out from

:20:44. > :20:47.Louise Lear in the weather studio. A lovely day on offer today, plenty

:20:48. > :20:52.of sunshine around for the moment due to this area of high pressure,

:20:53. > :20:57.but there is more low pressure waiting in the wings which will

:20:58. > :21:03.arrive tomorrow. Let's indulge in this beautiful weather we have at

:21:04. > :21:07.the moment. Yes, some showers to the north-east, but predominantly dry

:21:08. > :21:12.and sunny and it will feel very pleasant, particularly in the

:21:13. > :21:16.south-east with high temperatures of 10 degrees. More showers developing

:21:17. > :21:20.as the next area of low pressure starts moving in from the

:21:21. > :21:31.south-west. In Scotland, a cold night with a touch of frost, maybe

:21:32. > :21:35.some fog in East Anglia. Still the potential of some gales on the

:21:36. > :21:46.exposed south coast, but nowhere near as severe as the weather we

:21:47. > :21:50.have been seeing. Tuesday into Wednesday looks slightly quieter, a

:21:51. > :21:53.fair amount of cloud around and we might see some rain through the

:21:54. > :21:57.latter stages of Wednesday evening and overnight.

:21:58. > :21:59.As soon as this programme is over, you have got to get out there and

:22:00. > :22:10.enjoy today! Who's the most influential person

:22:11. > :22:13.when it comes to the economy and our fragile recovery? The obvious answer

:22:14. > :22:16.is the Chancellor but many would say it's actually the Governor of the

:22:17. > :22:19.Bank of England - a recently appointed Canadian called Mark

:22:20. > :22:23.Carney. He said he wouldn't jack up interest rates till unemployment

:22:24. > :22:27.fell to 7%. Well, now it has. When I met Mark Carney at the Bank of

:22:28. > :22:30.England a few days ago, I wanted to know, with jobless numbers falling

:22:31. > :22:33.should home owners and businesses be chewing their nails with fear of a

:22:34. > :22:37.rate rise? We actually said we wouldn't even begin to think about

:22:38. > :22:42.adjusting interest rates until unemployment came down. It has come

:22:43. > :22:47.down faster than we expected, that is good news, but when we look at

:22:48. > :22:51.the Labour market in particular, there are a lot more people who want

:22:52. > :22:55.to work, there are a lot more people who want to work full-time, there

:22:56. > :23:05.are a lot more people in self-employment, and that... That is

:23:06. > :23:09.what you call slack, isn't it? Yes, there is more slack in the labour

:23:10. > :23:14.market, and what we are seeing which is good news again but it suggests

:23:15. > :23:18.more slack is that people who have been out of a job for longer are

:23:19. > :23:23.finding employment more rapidly than they have in the past and that is

:23:24. > :23:28.good news but it means we can responsibly take our time and only

:23:29. > :23:33.adjust interest rates once more of that slack is used up. We are saying

:23:34. > :23:38.that there is this extra capacity in the labour market, more people

:23:39. > :23:42.wanting to work, and the question is what happens when the time

:23:43. > :23:47.eventually comes that we start to adjust interest rates? We are

:23:48. > :23:56.trained to be as clear as possible about that. Slow and gentle. Limited

:23:57. > :24:00.and gradual, yes. Let's talk about the recovery itself because you have

:24:01. > :24:07.said it is not balanced yet and not sustainable. What needs to happen to

:24:08. > :24:13.make that happen in concrete terms? What we have had so far is a

:24:14. > :24:18.consumer led recovery. Households in Britain have started to spend a bit

:24:19. > :24:23.more, that is the core of what has happened in the economy. We haven't

:24:24. > :24:28.seen business investment picking up and we certainly haven't seen net

:24:29. > :24:32.exports recovering. It will be difficult on the export side, Europe

:24:33. > :24:37.is still weak, it will take some time. The key to this recovery

:24:38. > :24:41.sustaining itself will be around business investment. It is part of

:24:42. > :24:46.the reason we are trying to provide as much clarity to business, that

:24:47. > :24:51.the path of interest rate is going to be calibrated very carefully to

:24:52. > :24:58.ensure that only when we see sustainable growth in jobs, in

:24:59. > :25:02.incomes and in spending will we make adjustments. You have said we will

:25:03. > :25:08.not go back to the old days of high interest rates for the foreseeable

:25:09. > :25:11.future. I suppose some would say a caricature of the old economy was

:25:12. > :25:16.that people were spending far more than they were burning, they rushed

:25:17. > :25:20.into housing bubbles from time to time and there was low productivity

:25:21. > :25:27.in the economy. Those things remain true so how can we be sure we won't

:25:28. > :25:31.be facing inflation? I could take issue with every one of those

:25:32. > :25:35.characterisations but I will pick a few. In the housing market we have

:25:36. > :25:40.seen an adjustment from very low levels. If you look at how many

:25:41. > :25:48.houses were purchased, mortgages were taken on, they have dropped by

:25:49. > :25:53.more than 50%, and have now bounced back but they are still more than

:25:54. > :26:01.25% below historic averages. In terms of the number of houses being

:26:02. > :26:09.bought, but not the price? The prices relative to incomes have come

:26:10. > :26:17.down relative to historic levels but we have to be very cautious of the

:26:18. > :26:21.history, the economic history of Britain. There is a history of boom

:26:22. > :26:25.and bust in the housing market and that is one of the reasons why the

:26:26. > :26:29.Bank of England have been given additional powers and one of the

:26:30. > :26:36.reasons as of last November we started to use them. We have

:26:37. > :26:42.tightened up on capital standards, taken away special stimulus

:26:43. > :26:49.programmes that existed before. What about the supposed Help To Buy

:26:50. > :26:56.scheme, are you comfortable with that? If we are not, we will say,

:26:57. > :27:02.and we will say that on our timetable. Is there a twinge of

:27:03. > :27:06.discomfort? I would say that relative to the level of

:27:07. > :27:17.transactions in the housing market, running at about 70,000 on an annual

:27:18. > :27:23.basis, there is about 6000 Help To Buy so it is still pretty small. It

:27:24. > :27:28.is all outside of London, for lower priced houses as a whole and mainly

:27:29. > :27:32.with first-time buyers so it is not driving the housing market but we

:27:33. > :27:39.have a responsibility to watch it. You are not too concerned about the

:27:40. > :27:47.fast spiralling of the London property market? First we have to

:27:48. > :27:52.make policy for the entire economy. Much of what is driven in London is

:27:53. > :28:04.not mortgage driven but cash driven, in many cases by foreign

:28:05. > :28:07.buyers. We cannot influence that. We change underwriting standards, it

:28:08. > :28:12.doesn't matter, there is not a mortgage and so on, but we watch the

:28:13. > :28:16.knock-on effect. I will say that if you look at the UK as a whole,

:28:17. > :28:22.everywhere except Northern Ireland we are now seeing house prices begin

:28:23. > :28:28.to recover so it is a more generalised phenomenon. Can I come

:28:29. > :28:32.back to the medium-term prospects for interest rates. The market could

:28:33. > :28:38.start to rage again, we could have an oil price shock, or a sudden rise

:28:39. > :28:42.in food prices. There are always possible shocks in the system. Are

:28:43. > :28:47.you really saying that despite all that we could look forward to below

:28:48. > :28:53.5% interest rates for the years ahead? When we have a forecast, we

:28:54. > :28:57.go out three years so three years from now, if you look at the

:28:58. > :29:04.interest rates in the market today, three years from now the market

:29:05. > :29:08.interest rate is about 2%, that implies where the Bank of England

:29:09. > :29:12.would be three feet -- three years from now. If you put that into the

:29:13. > :29:17.forecast we have a situation where we don't use up all the extra

:29:18. > :29:24.capacity in the market, which is one of our objectives, we want to use up

:29:25. > :29:28.all of the capacity. It gives you a bit of sense. In the medium-term and

:29:29. > :29:34.the long-term as the global economy becomes more normal, interest rates

:29:35. > :29:38.should move to more normal levels. If there are situations where there

:29:39. > :29:41.are persistent changes to the way the British economy functions, if

:29:42. > :29:49.there is a persistent commodity price shock, of course we have to

:29:50. > :29:54.respond. What we are saying is that there are some very big forces

:29:55. > :30:00.operating now and will persist. Weakness in Europe, repair of public

:30:01. > :30:03.balance sheets, the finishing off of repairing the financial system, they

:30:04. > :30:07.conspire collectively to keep the level of interest rates down and

:30:08. > :30:12.people should understand that. Looking at the next period ahead,

:30:13. > :30:16.the CBI is worried about the prospect of a referendum on Europe

:30:17. > :30:22.and the effect of that on uncertainty, are they right to be

:30:23. > :30:29.worried? Uncertainty is always bad for investment, and over the last

:30:30. > :30:33.course for five years we have seen that businesses, even when they have

:30:34. > :30:37.had cash and opportunities, they have held off from investing.

:30:38. > :30:43.Originally because of uncertainty over the financial system, was going

:30:44. > :30:49.to collapse, then the uncertainty about the Eurozone, was going to

:30:50. > :30:54.collapse, both those have decreased. The uncertainties that we

:30:55. > :30:58.can influence as the Bank of England is not a European referendum or a

:30:59. > :31:08.Scottish referendum. What we can influence, we are very involved in

:31:09. > :31:13.fixing the financial system, and uncertainty about that so we are

:31:14. > :31:19.trying to provide the comfort that we are not going to adjust interest

:31:20. > :31:29.rates until jobs, incomes and spending is OK. Last week you went

:31:30. > :31:32.to Scotland and said that technically it was possible for

:31:33. > :31:36.there to be a shared currency, but there would have to be a fiscal

:31:37. > :31:40.union, an agreement between the two governments. How dramatic would that

:31:41. > :31:50.have to be? An agreement on deficits, tax rates, what? To be

:31:51. > :31:54.more specific, what I said, to keep very strictly to a technical

:31:55. > :32:00.analysis to issues within currency unions. I was not opining on whether

:32:01. > :32:04.or not it would work. On the fiscal side, there are a few issues around

:32:05. > :32:12.banking. Specifically on the fiscal side, the observation that I made

:32:13. > :32:16.was that in virtually all currency unions, there is substantial fiscal

:32:17. > :32:23.arrangement that help equalise fiscal capacity. Sorry, that is

:32:24. > :32:31.about borrowing, about tax rates, that kind of thing? Yes, and it is

:32:32. > :32:35.to help ensure that fluctuations which inevitably happen in different

:32:36. > :32:43.regions of currency union are helped to be smoothed out by some form of

:32:44. > :32:47.stabilising mechanism. This is one of the fundamental challenges in the

:32:48. > :32:51.Eurozone. It's very relevant for the United Kingdom because it is our

:32:52. > :32:56.largest export partner. Ultimately, and I'm very clear about this, in

:32:57. > :33:03.our view, the Eurozone will have to move to some form of deeper fiscal

:33:04. > :33:07.arrangement. I know in terms of the Scottish and English question, if I

:33:08. > :33:10.can put it that way, it is up to the politicians on both sides to

:33:11. > :33:14.negotiate and not you. If for some reason they did not come to some

:33:15. > :33:18.fiscal agreement, is it plausible for the Scots to keep the pound

:33:19. > :33:22.anyway? Or would the Bank of England be able to send them pounds? Would

:33:23. > :33:27.they be able to carry on using them and so forth even if there was not

:33:28. > :33:34.in agreement? I'd rather not engage in hypotheticals. What clearly we

:33:35. > :33:40.would do is discharge our Monday that has given to us by Parliament,

:33:41. > :33:43.by the democratic authorities. So we don't make those decisions. The

:33:44. > :33:50.decisions are quite rightly made for us. It would be up to the Chancellor

:33:51. > :33:53.of the Exchequer in London? Yes. In terms of other bumps ahead, we

:33:54. > :33:57.talked briefly about Europe. Apart from the uncertainty factor, do you

:33:58. > :34:03.think that withdrawal from the European Union would be a problem in

:34:04. > :34:13.terms of the forward trajectory of the economy? It is not something

:34:14. > :34:19.that would happen on our forecast horizon. So you don't expect it? By

:34:20. > :34:23.understanding of any potential timetable is that it is beyond our

:34:24. > :34:27.three-year forecast. One of the other big issues we have had has

:34:28. > :34:32.been bank bonuses. We have recently seen Barclays raising bonuses at the

:34:33. > :34:36.same time as cutting dividends and profits. Is that an acceptable thing

:34:37. > :34:39.for a bank to be doing? Are you worried the bonus culture hasn't

:34:40. > :34:45.quite been tackled in London? I'm not going to comment on it specific

:34:46. > :34:47.firm. We think with compensation to bankers that an increasing

:34:48. > :34:51.proportion, as they become more senior, as they take more risk,

:34:52. > :34:55.should be held back. You call it a bonus, we look at it differently. It

:34:56. > :35:00.should be held back, it should be deferred for a very long time. And

:35:01. > :35:06.there should be the ability, and we have the expectation, that the firm

:35:07. > :35:13.will take back that compensation if the individual is subsequently found

:35:14. > :35:17.to have taken the risks that were not understood, or if their conduct

:35:18. > :35:21.issues. Unfortunately, we have seen both far too much. The structure of

:35:22. > :35:25.compensation has to move in that direction. We think more deferral,

:35:26. > :35:29.for a longer period of time, is the right way to do it. That is the core

:35:30. > :35:35.thing. The second thing, and we put this not just here into regulation,

:35:36. > :35:40.but we have helped put this into regulation globally, firms cannot

:35:41. > :35:44.pay bonuses, their ability to pay bonuses is restricted if their

:35:45. > :35:52.capital level starts to reduce. These are the new rules? These are

:35:53. > :35:55.the many rules, they are hard-wired into the capital system. That will

:35:56. > :36:03.start to have real teeth as time goes on. You are very very powerful

:36:04. > :36:08.in this country, can you tell some of our viewers how you find working

:36:09. > :36:13.in London, as compared to the 80s and 90s? What do you find about the

:36:14. > :36:16.culture here? The culture is even more cosmopolitan than it was when I

:36:17. > :36:23.first worked here in the late 80s. Even then, the city was

:36:24. > :36:29.internationalised. I think the level of innovation is just as great. I

:36:30. > :36:36.would say about the UK as a whole, again, this is no deep inside, but

:36:37. > :36:46.if you're at the culture as a whole, not just working culture, music,

:36:47. > :36:50.theatre, food, any aspect, the UK has made quantum leaps, further

:36:51. > :36:55.quantum leaps from an already high base. Its influence internationally

:36:56. > :37:00.is absolutely phenomenal. So it is a privilege to have this role, on a

:37:01. > :37:08.personal level, to have this opportunity for myself in the UK.

:37:09. > :37:10.But it is also a privilege being given the great responsibility that

:37:11. > :37:14.this institution has. Thank you for joining us.

:37:15. > :37:23.The cool Mark Carney. They call him the George Clooney of finance.

:37:24. > :37:27.George Clooney is not only one of the top film stars in the world,

:37:28. > :37:29.he's also at the forefront of producing and directing big budget

:37:30. > :37:33.movies. His latest, The Monuments Men is an old-fashioned war film

:37:34. > :37:37.about the vast looting of art that went on under the Nazis and the

:37:38. > :37:41.Allied men whose job it was to grab it back and save it. George Clooney

:37:42. > :37:47.explained to me why he wanted to make this film in particular. But

:37:48. > :37:54.first, the author whose Book it is based on told me the full extent of

:37:55. > :37:58.the largest art theft in history. By the time the officers find these

:37:59. > :38:02.salt mines and caves in castles, the 2000 hiding places, gather these

:38:03. > :38:05.things into the collecting points to begin the lengthy process of sorting

:38:06. > :38:09.through them and returning them, they have 5 million stolen objects.

:38:10. > :38:14.A vast treasure trove, the greatest artist is on the planet, many of the

:38:15. > :38:21.greatest sculptors? When we talk about art, we need to talk about a

:38:22. > :38:25.broader context. 5000 church bells, stained glass, drawings, tapestries,

:38:26. > :38:32.jewellery, coin collections, anything with any value was stolen

:38:33. > :38:36.by the Nazis. Exactly what we're fighting for. Culture, and a way of

:38:37. > :38:38.life. You can wipe out the generation of people, you can burn

:38:39. > :38:43.their homes to the ground and somehow they still come back. But if

:38:44. > :38:54.you destroy their achievements, their history, it's like they never

:38:55. > :38:57.existed. Just... Ash, floating. In Hollywood, we do like to tell a

:38:58. > :39:02.World War II story, I think England has some of the same things. It's a

:39:03. > :39:07.fairly clear good guy, bad guy film and story. But I didn't know this

:39:08. > :39:14.story. I like to think I'm fairly boned up on World War II. I knew

:39:15. > :39:17.some of the ideas, that Hitler was taking a hard, but I didn't know how

:39:18. > :39:23.systematic it was. I didn't know about these men and women that

:39:24. > :39:27.worked furiously to save the culture of Europe's art. It is an

:39:28. > :39:31.old-fashioned, big budget movie. If it wasn't George Clooney heading

:39:32. > :39:35.this, it would not have been made, presumably? For the last 15 years or

:39:36. > :39:39.so, I have focused on trying to get films made that are not easily made

:39:40. > :39:44.otherwise. Because they are going to get made anyway. Michael Clayton,

:39:45. > :39:52.Good Night, Good Luck, The Descendants, they are hard to get

:39:53. > :39:56.made. You leverage in your pulling power in Hollywood to get films made

:39:57. > :39:59.that wouldn't otherwise be made? If you think about what salaries are

:40:00. > :40:04.for actors, which are ridiculous, but they are real, if you are saying

:40:05. > :40:10.to a studio, well, I will do this for scale and take some money on the

:40:11. > :40:14.back-end, you are several million dollars of investment in the film.

:40:15. > :40:19.If the film is a $15 million film otherwise, you are as much of an

:40:20. > :40:24.investor as the studio. You are working with them. This is a film

:40:25. > :40:27.about idealism, a film noticeable by its complete lack of cynicism, it

:40:28. > :40:35.has been said, and I think that is true. Della Grant, my producing and

:40:36. > :40:46.writing partner for 31 years, Week tend to find ourselves making very

:40:47. > :40:49.cynical films. We have Argo for that. We have a lot of films that

:40:50. > :40:53.don't have good endings, necessarily. Why don't we do one

:40:54. > :40:59.that would remind me of the war films I grew up with, you probably

:41:00. > :41:07.did too. Kelly's Heroes, Which Too Far. You and John Claude get as

:41:08. > :41:14.close to Germany as you can. We'll leave in the morning. I'll had up to

:41:15. > :41:20.my old stomping ground, Bruges. There is a Madonna there are use to

:41:21. > :41:33.see when I was young. When they did this, in 1944, it was the first time

:41:34. > :41:36.in the history of war where the victors gave the spoils back. We

:41:37. > :41:41.have lost our way a little bit. When we prosecuted the war in Iraq, a

:41:42. > :41:47.full's journey anyway, when we went in there, we did not protect the

:41:48. > :41:51.National museums. Some of the most important artefacts in the history

:41:52. > :41:56.of the human race were lost. That's just terrible. You know, what the

:41:57. > :42:01.Taliban did in Afghanistan, certain things you just go, we are not

:42:02. > :42:05.learning our lesson, necessarily. Can I ask very briefly about another

:42:06. > :42:08.film? It's very rare you go to this MR and see something you have never

:42:09. > :42:16.seen before, and I felt that with Gravity. A totally different type of

:42:17. > :42:23.film. Houston, this is Explorer. Copy? We've lost Houston. We've lost

:42:24. > :42:27.Houston! The only real, living, moving thing is your face and Sandra

:42:28. > :42:33.Bullock's face from year to about here. What was that like to act? A

:42:34. > :42:40.strange experience? It was a strange experience, we cannot see what

:42:41. > :42:54.Alphonso sees. You have to go into it, trusting him. It was two years

:42:55. > :42:58.of shooting, on and off. All kind of blue screen? It was a thing called a

:42:59. > :43:02.light box. It was amazing. They invented it for this. We would go

:43:03. > :43:05.back and shoot stuff equals the technology was yet to be invented

:43:06. > :43:10.when we were shooting. What I love about the film is that it brought

:43:11. > :43:15.back the idea that you can't see this film on your big-screen TV. You

:43:16. > :43:19.need to go. You absolutely do, to be immersed in it. You have fame,

:43:20. > :43:24.fantastic well, you are able to make the films you want, is there any

:43:25. > :43:29.downside to your life? I would say this, I can make this argument for

:43:30. > :43:36.you, I grew up in Canterbury. I cut tobacco in summer. I sold ladies

:43:37. > :43:46.shoes at a department store. I can't imagine, I was making $3 an hour, I

:43:47. > :43:49.couldn't imagine hearing someone who gets to make any money they want to

:43:50. > :43:52.make, who has fame and money, I can't imagine hearing them

:43:53. > :43:57.complaining about a thing without having read theory go up my spine.

:43:58. > :44:02.The things that would become placated and difficult for me are

:44:03. > :44:07.beyond anything I should talk about. -- read theory.

:44:08. > :44:17.So, to Britain in Europe. The issue which obsesses Westminster more than

:44:18. > :44:20.any other. The referendum, free movement of people, the Scots, you

:44:21. > :44:23.name it. The President of the EU Commission, Jose Manuel Barroso, is

:44:24. > :44:35.the man David Cameron and Salmond must do business with. Can I ask how

:44:36. > :44:43.the negotiations are going with David Cameron? So far there is no

:44:44. > :44:50.proposal for a new treaty or some changes. We have taken notice of the

:44:51. > :44:54.statements made by Prime Minister Cameron as the Conservative leader

:44:55. > :45:00.because the Government of Britain as such has not put forward any

:45:01. > :45:05.proposals so far. So no negotiations so far really. In terms of a lot of

:45:06. > :45:14.the things written would like to see renegotiated, I suppose top of the

:45:15. > :45:21.list is the movement of free people, is that up for grabs? We

:45:22. > :45:25.have to make a clear distinction, one is freedom of movement, a

:45:26. > :45:30.fundamental principle of the internal market. We have an internal

:45:31. > :45:35.market, that is on the freedom of movement, goods, services, capital

:45:36. > :45:42.and people. The British people and British companies receive access to

:45:43. > :45:47.the internal market so I don't think it is possible, but to fight against

:45:48. > :45:52.abuse of the freedom of movement, this is certainly possible, in fact

:45:53. > :45:57.we have already now reinforced the rules so we are tough against

:45:58. > :46:02.abuse. It is a legitimate concern we can address but without putting in

:46:03. > :46:05.question, and we have to be very firm, the extremely important

:46:06. > :46:12.principle of freedom of movement which is so important for Britain as

:46:13. > :46:16.the internal market is. You have been speaking about the Euro crisis

:46:17. > :46:23.and the changes that have to be made to the euro bloc. I right in saying

:46:24. > :46:31.there has to be deeper fiscal union as well, harmonising tax rates, a

:46:32. > :46:40.single system? Deeper fiscal union, certainly, and I think it will be

:46:41. > :46:43.unavoidable to have reforms. The markets are demanding that and in

:46:44. > :46:49.fact we have been moving in that direction in respect of the current

:46:50. > :46:57.treaty. This is possible and desirable. In effect a single

:46:58. > :47:02.European government? Increased governance certainly because in the

:47:03. > :47:09.end, and we have learned this through the financial crisis, the

:47:10. > :47:12.fluidity and solidity of a currency depends on the construction behind

:47:13. > :47:18.it and the most acute moments of the crisis, I was thinking of President

:47:19. > :47:21.Obama or the president of China, Japan, the questions they were

:47:22. > :47:26.putting was not so much what was going to be the level of deficit of

:47:27. > :47:34.Greece, but do we believe the monetary union will develop? That

:47:35. > :47:39.was the question. That kind of change would require presumably the

:47:40. > :47:43.new treaty, and that would be David Cameron's moment for a referendum

:47:44. > :47:48.with us because it would be inevitable, if there was a deeper

:47:49. > :48:03.European Court, our relationship with it would be different as well.

:48:04. > :48:08.-- European core. Any point that Britain wants to make for a reform

:48:09. > :48:13.of the treaty requires the other 27 countries, they are sovereign

:48:14. > :48:22.countries as well, to accept the same way. Any reforms they make also

:48:23. > :48:28.require Britain to accept. If there is goodwill and intelligence on all

:48:29. > :48:37.sides, it is possible provided there is not an attempt to put in question

:48:38. > :48:43.the basic principles of our European -- our union. The British government

:48:44. > :48:46.and Prime Minister Cameron have been very supportive because they

:48:47. > :48:51.understand it is also in the interests of Britain and the

:48:52. > :48:58.interest of the world, the financial stability, but at the same time we

:48:59. > :49:09.have two deepen the area and we have two deepen the integrity of the

:49:10. > :49:23.single market. It represents to the British government 90 billion pounds

:49:24. > :49:28.per year for the British economy so it is extremely important not to put

:49:29. > :49:33.that at risk. It seems that what David Cameron says he wants, the

:49:34. > :49:43.European union which is looser, will not happen. Will this happen by

:49:44. > :49:51.2017? I cannot commit to any dates, we have to know if the British

:49:52. > :49:57.government will keep that position. I think it is important to have in

:49:58. > :50:03.mind, I don't see a contradiction between deepening the euro area,

:50:04. > :50:06.that is certainly desirable, and having some flexibility for the

:50:07. > :50:12.European Union provided the general framework is kept as it is. For

:50:13. > :50:18.instance we have already now countries in the euro, countries not

:50:19. > :50:26.in the euro, and we have possibility to opt out of justice and foreign

:50:27. > :50:31.affairs so it is possible to come to an arrangement but it is for the

:50:32. > :50:36.member states to decide. Something like putting a cap on the number of

:50:37. > :50:42.EU citizens that can come into Britain, is that going beyond what

:50:43. > :50:47.is acceptable? It is in contradiction with the freedom of

:50:48. > :50:54.the movement because the British, I think there are 2,200,000 British in

:50:55. > :50:58.the European Union and they will not have the same access. It means the

:50:59. > :51:01.British companies will not be free to make their businesses in France

:51:02. > :51:17.and Germany, so I really believe that is not... Also there will be a

:51:18. > :51:21.problem of reciprocity. If Britain gives freedom of access to the other

:51:22. > :51:28.countries in Europe, it is important also to have the same access of

:51:29. > :51:32.British companies. We are going to have a referendum this year about

:51:33. > :51:35.Scottish independence from the rest of the UK. An independent Scotland

:51:36. > :51:43.would have to reapply for membership of the EU, and the second question

:51:44. > :51:49.is would it be welcome? The referendum or the independence? An

:51:50. > :51:55.independent Scotland applying for membership of the EU. I don't want

:51:56. > :52:01.to go into hypothetical questions but I can say we respect the process

:52:02. > :52:05.going on. It is for the Scottish people and the British citizens to

:52:06. > :52:10.decide about the future of Scotland. What you have said is perfectly

:52:11. > :52:15.right. In case there is a new country, a new state coming out of

:52:16. > :52:21.our current member states, you have to apply and it is very important,

:52:22. > :52:27.the application. The accession would have to be approved by all of the

:52:28. > :52:34.other countries in the European Union. And countries like Spain who

:52:35. > :52:38.have similar issues as well. I don't want to comment, of course it would

:52:39. > :52:42.be extremely difficult to get approval of all the other member

:52:43. > :52:46.states to have a new member coming from one member state. We have seen

:52:47. > :52:52.for instance Spain has been opposing even the recognition of Kosovo for

:52:53. > :52:58.instance so it is a similar case because it is a new country so I

:52:59. > :53:01.believe it will be extremely difficult if not impossible, a new

:53:02. > :53:06.member state coming out of one of our country is getting the agreement

:53:07. > :53:11.of the other members. Having said that, it is now for the British

:53:12. > :53:15.people and the Scottish people in their referendum to decide about

:53:16. > :53:22.their future. Would it affect how Scotland is regarded, if it said it

:53:23. > :53:27.wanted to be a member state? I cannot go into detail because this

:53:28. > :53:32.is a hypothetical question. I don't think I should interfere. It is up

:53:33. > :53:37.for the Scottish people to decide and the British people also, but

:53:38. > :53:44.certainly I think if you raise a lot of difficulties, and it will never

:53:45. > :53:48.be easy that process. There has been some suggestion Britain will apply

:53:49. > :53:56.to the EU for special flood money, is there money available? I have

:53:57. > :54:01.already stated that if the conditions are met because there are

:54:02. > :54:04.some criteria, we will look at that request very constructively. In fact

:54:05. > :54:16.Britain already received in 2007 money from this fund. Jose Manuel

:54:17. > :54:20.Barroso, thank you for joining us this morning. Now the news

:54:21. > :54:25.headlines. The Defence Secretary have said there are 5000 more troops

:54:26. > :54:30.of varying levels of notice that could be deployed to flood hit

:54:31. > :54:34.areas. Philip Hammond also said Royal Engineers would be drafted in

:54:35. > :54:38.to carry out a rapid inspection of the level of damage to the

:54:39. > :54:43.infrastructure of the country. We have agreed with the Environment

:54:44. > :54:47.Agency we will use Royal Engineers to do a rapid inspection of the

:54:48. > :54:54.flood defences so we will try to do in five weeks what would be a

:54:55. > :54:59.two-year programme of inspection. It is important for people to

:55:00. > :55:05.remember, this series of weather events over the last two months has

:55:06. > :55:09.caused serious damage. The president of the European commission has said

:55:10. > :55:14.that freedom of movement within the EU could not be included in any

:55:15. > :55:18.renegotiation of the UK's relationship with the rest of the

:55:19. > :55:22.European Union. He said it was a fundamental principle and added that

:55:23. > :55:26.it would not be possible for any individual country to cap the number

:55:27. > :55:31.of migrants allowed in. The next news on BBC One is at one o'clock.

:55:32. > :55:36.Back to Andrew in a moment. First, a look at what's coming up immediately

:55:37. > :55:40.after this programme. Join us live from Edinburgh at ten o'clock when

:55:41. > :55:50.we will be debating whether love can truly heal or split in the Church.

:55:51. > :55:56.And the right to die, and does religion need a God?

:55:57. > :55:58.Boy George is one of the most colourful and consistently

:55:59. > :56:02.successful figures in modern British music. Over 30 years ago he fronted

:56:03. > :56:06.Culture Club when their hit single 'Do You Really Want To Hurt Me?'

:56:07. > :56:09.reached the number one spot in 16 different countries and "'Karma

:56:10. > :56:16.Chameleon' also rocketed to the top of the charts. He's been plagued

:56:17. > :56:19.since then by drink, drugs and controversy but he's a survivor and

:56:20. > :56:26.now he's back - clean and sober. You are going to play for us in the

:56:27. > :56:33.moment but how has becoming sober changed your music? What would have

:56:34. > :56:39.happened to you if you hadn't? I wouldn't be on your lovely show. You

:56:40. > :56:44.are on our lovely show, and thank you very much indeed. Sadly we're

:56:45. > :56:48.right out of time. Join me again at the same time next Sunday here on

:56:49. > :56:55.BBC One. Until then, we leave you with Boy George. From his new album,

:56:56. > :57:08.this is 'My God'. # A man gives me the book of God and

:57:09. > :57:14.I turn to him and said # I wouldn't be here my friend if I had no faith

:57:15. > :57:23.# Here in the darkness I became the light # I had to get it wrong to get

:57:24. > :57:34.it right # He crossed himself and I shook my head # He said "Jesus loves

:57:35. > :57:38.you, don't you know?" # My God is bigger than your god # My God is

:57:39. > :57:51.better than yours # Put your palms away # You need a little more faith

:57:52. > :57:54.# Don't you know what your heart is for?

:57:55. > :58:10.# You should know what your heart is for

:58:11. > :58:20.# Saw the devil down in New York City # All dressed up like a saint #

:58:21. > :58:33.You're in your phony crown and war paint # You see number six # But

:58:34. > :58:39.blue boys took you down # Watch you fall apart like fate in China Town #

:58:40. > :58:48.I cross myself and he shook his head # I said "Jesus loves me, don't you

:58:49. > :59:02.know?" # My God is bigger than your god # Put your faith in the good

:59:03. > :59:06.Lord # Put your palms away # You need a little more faith # Don't you

:59:07. > :59:09.know what your heart is for? # You should know what your heart is