08/06/2014 The Andrew Marr Show


08/06/2014

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If there's an Islamist plot bubbling in Britain's schools, extremists

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have this morning claimed their first scalps - a battered Home

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Secretary forced to fire her closest adviser and an Education Secretary

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damaged after being made to publicly apologise. There's even talk

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That doesn't matter very much, two damaged Cabinet egos.

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What does matter is what's going on in these classrooms and

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This isn't about two ministers' futures, it's about Britain's.

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And joining me today for our review of the Sunday newspapers, the former

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First Sea Lord and one-time Security Minister, Admiral Lord West.

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And the mothership of the Liberal Democrats,

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Of course, this week we've been remembering D-Day.

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The EU may have helped keep the peace in Europe since the War

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but it's a fractious and uneasy union now, as the recent

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Violence is growing worse in Ukraine and, in the west,

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political strife has been driven by the economic crisis - not over -

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as I've been hearing from the head of the IMF, Christine Lagarde.

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She's been in London to report on the relative health

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But, of course, we talked about European politics too and

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Some think she'd be the best woman for the top job of President

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And we'll talk more about EU reform and those Cabinet

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battles later on with the Foreign Secretary, William Hague.

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UKIP failed to win its by-election battle with the Tories this week but

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seems increasingly to be training its guns on the Labour Party.

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Should Labour respond with a tougher policy on immigration?

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The woman who has to decide is the Shadow Home Secretary,

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Also, with 100 days to go until the referendum on Scottish independence,

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we'll be joined by somebody who certainly does want to be in Europe,

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What does he make of President Obama's unexpected

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And our music this morning hails from Scotland too:

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Eddi Reader is here with a song from her latest album.

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First though, it's over to Sian for the morning's news headlines.

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The Education Secretary, Michael Gove, has apologised to the Prime

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Minister following a bitter public row with the Home Secretary, Theresa

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May, over reports that hard-line Muslims had attempted to influence

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Mrs May's special advisor has resigned after David Cameron

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Our political correspondent, Chris Mason, reports.

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Wednesday was supposed to be the day at Westminster dominated by this...

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My Lords and Members of the House of Commons.

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The Queen 's Speech, the Government setting out

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Never mind the pomp and ceremony, instead there was a public spat

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between two of the Government's most senior Conservative ministers,

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The row broke out because of the allegations still hovering over

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21 schools in Birmingham and the suggestion there has been a takeover

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Michael Gove told the Times the Home Office 's response to extremism

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was inadequate and that some had been very wary of drawing attention

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to the alleged events here as it might be seen as Islamophobic.

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This woman, the Home Secretary 's special

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adviser, Fiona Cunningham, told reporters that Mr Gove was trying to

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The resignation leaves the Home Secretary wounded.

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Michael Gove 's apology to the Prime Minister and a senior Home Office

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It will not be easy for him to face questions from MPs

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in the Commons tomorrow after the inspectors' reports into those

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Football's world governing body, FIFA, is under growing pressure

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over its decision to award the 2022 World Cup to Qatar.

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One of its main sponsors, Sony, has called for a thorough investigation

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into allegations of corruption during the bidding process.

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Here's our sports editor, David Bond.

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It has not been an easy ride but with a few days to go Brazil is

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getting ready to stage football 's biggest party.

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For the men who run the global game, it is the World Cup in Qatar

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Today more allegations about how the tiny Gulf State won the right

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The Sunday Times says Qatar 's disgraced former football chief,

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Mohamed bin Hammam, brokered deals and favours to secure

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However, both Qatar and bin Hammam have repeatedly denied he played any

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Britain 's most senior football official admits it has been another

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tough week but he says FIFA is changing.

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Mr bin Hammam, who there has been a lot of talk about recently, he

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Many of these are the people who are mentioned are no

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In the meantime, Qatar are getting on with their plans.

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They and FIFA will be hoping the football in Brazil will take

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Security is tight in the Egyptian capital, Cairo, ahead of

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the swearing-in ceremony of the new president, Abdel Fattah el-Sisi.

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Mr el-Sisi won last month's elections by a landslide,

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The elections came less than a year after he deposed the

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Here, the Health and Safety Executive has

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begun an investigation into the death of a ten-year-old boy, who was

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It happened on a farm near Dunloy in County Antrim yesterday afternoon.

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The boy's father has been left critically injured.

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A Royal Navy warship has been deployed to the Baltic Sea for a

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military exercise, amid continuing tensions with Russia over Ukraine.

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The Defence Secretary, Philip Hammond, has announced that

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British forces will take part in three operations in the Baltic

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region to provide reassurance to allies in Eastern Europe.

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He added that the situation in Ukraine continues to be

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of great concern to the international community.

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I'll be back with the headlines just before 10am.

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The Mail on Sunday talks about bloodbath over Muslim schools the --

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fiasco. Michael Gove is forced to apologise. A moving story in the

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Independent on Sunday about rape in wall. When we rape, we feel free.

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Finally, the Sunday Times, carrying on its assault on FIFA, which seems

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to be bearing a lot of fruit at the moment, judging by the news

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headlines. And with me to review the papers are

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Shirley Williams and Lord West. Be Michael Gove and Theresa May

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story is quite serious. They are both substantial contenders for

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future Prime Minister. They are probably the most significant,

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specific Cabinet ministers on the right of the Conservative Party. One

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would have thought they would be singing in chorus. They have broken

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their relationship of the Muslim issue in Birmingham. I think one of

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the real problems is that Mr Gove has brought in a policy under which

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the Department of Education is almost solely responsible for the

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way schools are run - whether they practice the National Curriculum. He

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has a contract with every single academy and every free school helped

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by the Department of Education. If there is a free school, it is his

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responsibility? It is his responsibility and it is too much.

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He simply cannot do this. You wear a former Education Secretary. You have

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sat in the chair and looked at the scale of the job. I think he has

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taken on too much. He is terribly dependent on Ofsted. They may miss

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something for a couple of years. I am going back to the Muslim issue,

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it is crucial we have a consensus on the approach to that. It really

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means we have to respect the National Curriculum for all

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schools. We have another Former Minister and you are on the security

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side. Do you regard this as a security story rather than a Cabinet

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row? This is something of great concern. There is an article by Toby

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Young in the Mail on Sunday and an article in the Sunday Telegraph

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which expose some of the real difficulties. We have not got this

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right. Alasdair Palmer points out that back in the mid-90s we were

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ignoring these things beginning to happen. The French warned us. They

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had a term for it. Are we ignoring it again? There has been a huge

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debate about multiculturalism. I think we have gone the wrong way. We

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have a wonderful society. Britain is a marvellous place. We cannot allow

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little groups to form which have a different agenda and the different

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way of looking at things. Michael Gove is essentially right to warn

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about this? He was warned by a highly regarded headmaster in 2010.

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We are all in 2014. I have to say, I do not think he has the time or

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energy to follow these things up. Sky it is understood. We have to get

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the local community, local government and local educational

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parity. Everyone needs to be involved in this, otherwise we will

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not get that. We also have to get non-Muslims involved with Muslims

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together. We have to move on. We have been talking all week about the

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D-Day celebrations. You had a programme on the radio about the

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Navy. It looks to me like the Mail on Sunday again. This is Bernard

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Jordan, the great escapee. What a wonderful thing! The aspect I really

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picked up was he was in naval officer. He said he was involved

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with the Enigma machines and our ability to crack the German codes

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and beat them. There was a piece in the Sunday Times, a lovely page

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showing the level of ships involved. That shows the individual.

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All of this, we forget with these huge pivotal events, that everyone

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involved is an individual. It talks about this chap being sunk and

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climbing out. We have seen the pictures of the troops that went

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ashore and the veterans from the Army. Perhaps we forget how many

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people died in the Navy. The other thing we should be proud of, there

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have been about 6000 ships. Of those ships, about 5000 were British.

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Imagine that. There is a tendency to call it the American invasion. That

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wretched film that we do not talk about. I want to say there is a

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wonderful spirit. He said, I loved every minute of my great escape and

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I would do it again. You can see the whole of the older generation

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mobilising. We are still there as individuals and we are as gutsy as

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we ever were. Do you think we are going to see a whole wave of

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pensioners absconding from homes? Almost certainly. Climbing out of

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windows! A number of veterans have said, people keep saying this is our

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last gathering. We intend to be there in ten years. When you are

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looking back as a historian, what do you feel about the scale of the

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cuts? I think we have gone too far with the Navy. We still run global

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shipping from London and we are totally reliant on those sinews that

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keeps the global village together. To have 19 escorts is a national

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disgrace. We have to think very hard about that. We are in a very

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dangerous world. Every 20 hours from Qatar, which we come on to another

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reason, there is an LNG carrier. If you stop that, suddenly you have no

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power. That is the same with food and other things. Build more ships.

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We are engaging in exercises on the border at the moment. It is

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important that we show... We should have been quicker. Do not try to

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mess with that line. It just reinforces that.

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have been quicker. Do not try to mess with that line. It is probably

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a good thing to do these exercises. I think President Putin was caught

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out with what happened in Ukraine. I do not think he really wants to get

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involved with eastern Ukraine. He is in a bit of a mess. I think he has

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the bit he really wants, Crimea. I mentioned at the beginning the story

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in the Independent about the behaviour of soldiers in the Congo.

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This is a terrible story, the commanders are saying to them in, go

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out and rape women. A terrible phrase was used, that this makes us

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feel free. Our Foreign Secretary we make is taking this very seriously.

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-- William Hague. We are seeing this use of sexual violence as a major

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weapon in war increasingly. In the case of Congo, what we are seeing

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more and more is men soldiers being used as attackers on women, using

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rape as their main attack form. That raises whole issues including

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domestic violence and so on. There is a conference involving Angelina

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Jolie and so on. There is a conference this week, and also with

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William Hague. Where ever there is war, there is rape used...

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Particularly in Bosnia. There is one thing to add, there is a strong

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feeling that we are not treating women who flee as refugees from rape

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areas with the sympathy that we should have. It takes police and

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immigration officials to understand that this is a serious crime and not

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something to be waved away. Lord West, your next story. This is the

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World Cup issue and the allegations about bribery and things like that.

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When it was announced that Qatar was doing it, were any of us surprised

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that this nation got the thing? It made one wonder. And in a

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temperature of 50 degrees or something like that. What is the

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essence of the Sunday Times? Their second week of attacking on this

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story. They are showing there is a case to answer. We have got to see

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it fully but more and more is coming out and I think it is and about. I

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feel in sport, but it clearly football, there was almost too much

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money involved -- particularly in football, there was almost too much

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football. There is a story of a Durham miners team that won the

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equivalent of the World Cup in 1916. What a wonderful time that was.

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Corinthian days. I would like to skip to this story about Margot

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Asquith. She was a very waspish lady, reading through diaries and

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making comments about them. I remember a famous story when she was

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introduced to Jean Harlow, remember a famous story when she was

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Harlow said, high, how nice to see you. Lady Asquith looked at her with

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complete loathing and said, that he is silent -- the T is silent. When

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we say waspish, it is more than that. This is Churchill in the First

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World War. Winston's vanity is septic, he would die of blood

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poisoning if it was not for the red blood that circulates through his

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heart and stomach. It is savage stuff. We need more diarists like

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that. The last story... The greatest grand strategic threat to the

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security and defence of our islands is the possibility of Scotland

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separating. There is an article in the Independent that looks at the

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nuclear clean-up, talks about nuclear submarines. This is a

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serious issue. There was no doubt that if Scotland separated, it would

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diminish our ability to defend these islands. That is the fault of the

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mystery of defence not preparing properly, many would say. -- the

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Ministry of Defence. I am not blaming anybody but it would have a

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huge impact. We have to leave it there, thank you both.

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That's perhaps the earliest quotable line in English poetry,

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and shows that it was a notable relief, when summer limped in

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Still is. Over for further details, not necessarily in rhyming

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I love your hands to the weather, I think you should come here and do

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the weather yourself. For most of us it is going to be a beautiful day

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with warm sunshine. There is a chance of catching one or two heavy

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showers. On the satellite picture, vast swathes of the UK enjoying

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early morning sunshine, mid-morning sunshine. The showers will be

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brewing over the next few hours, probably across Wales, England,

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Scotland and Northern Ireland. Most of us will miss them, temperatures

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getting up into the mid-20s, maybe higher in the south-east. Through

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tonight, with the cloud and the moisture coming in from the near

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continent, it will be muddy. It is warm across continental Europe. 15

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or 16 first thing in the morning -- it will be

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a chance of catching a shower but still really warm, up to 25 degrees

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in the south-east, more like 20 degrees across the warm spots in the

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rest of the country. A quick outlook on what we can expect for Tuesday

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and Wednesday, still a mix of showers that in the south it looks

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as though it will stay warm. So, now we know what Barack Obama

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thinks about the prospect But will the President's view -

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that the UK should stay strong and united - have the slightest

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influence on voters in Scotland? Will they be more swayed

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by the latest promises from the unionist parties, of more power to

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Scotland, if it doesn't break away? With 100 days to go now until

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the crucial vote, I'm joined now from Aberdeen by the First Minister,

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Alex Salmond - good morning. Good morning. Did you regard

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President Obama's intervention as under the matter? -- undiplomatic?

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It was surprising, America had made it clear they were staying

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studiously neutral by the democratic referendum that was taking place in

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Scotland. Then of course, David Cameron has been baying everybody

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internationally to say everything. He is right to be worried. Perhaps

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in the Richter scale of presidential interventions, this is mild. It is a

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matter for the folks in Scotland. He hopes the UK will be strong and

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united as an ally. If Scotland becomes independent, America will

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have two allies. One of them is determined to get rid of nuclear

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submarines. That is presumably what is worrying the Americans most. I

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heard Lord West, he is exercised by it, but he believes Trident

:22:38.:22:41.

submarines make the country more secure, I don't. A number of his

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former colleagues share my view rather than his. If the rest of the

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UK wants to retain a nuclear tape ability they can do so for the bid

:22:54.:22:58.

would be an unwise -- nuclear capability, they can do so. I think

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it would be unwise. It would not be wise to have nuclear station in

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Scotland after independence. I am not saying they would have to be

:23:07.:23:11.

moved in the day after, but remove they should be. You mentioned in a

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newspaper article that the unionist parties have come up with different

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tax-raising ideas for the Scottish Parliament. I have been talking to

:23:22.:23:25.

yes campaigners and there is a general sense that this is an

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inevitable process, that even if the vote doesn't go the way you hope,

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Scotland will get more power and eventually independence will come.

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Will you agree with that? The only guarantee of getting more powers is

:23:39.:23:42.

to vote yes on September the 18th. Anything else is in the grace and

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favour of the unionist parties. They have form in these sorts of things.

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You and I are old enough to remember 1979, not just Alec Douglas Hume but

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Margaret Thatcher indicated that if Scots voted no, there would be a

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better deal coming along. Scots voted yes, we did not get

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devolution, we got 18 years of Margaret Thatcher's government. I

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think having had that experience, it would be foolish to rely on promises

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from unionist parties. Far better to take the matter into our own hands

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on September the 18th. The political atmosphere in Scotland is completely

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different to 79. Do you think in these circumstances, the unionist

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parties are not telling the truth when they say they would give the

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Scottish Parliament new powers if there was a no vote? I am just

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saying we should not rely on pre-referendum promises by parties

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which are under pressure, under pressure because we have that

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referendum date, we have the ability on September 18 to take the decision

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for ourselves. It would be wise for us to do so. There is no doubt that

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the Scottish Parliament, since 1999, as accumulated substantially more

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power. That has been a good thing for Scotland. -- has accumulated.

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You might argue that we have had a 100 year process of devolution of

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power being devolved to Scotland and perhaps in the next 100 days we can

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complete that journey. I have been talking to lots of people in

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Scotland and I find it is completely impossible to guess what is going to

:25:23.:25:26.

happen. So many people say, I don't know. Keeping things to themselves.

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Do you think this is about ex-Labour voters in central Scotland, that is

:25:35.:25:41.

the big battle ground area? There are a number of issues which will

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decide the election. Rather than to King about individual categories of

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voters... -- Rather than talking about. People who would normally

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vote Labour, a large number of them will vote yes in the referendum and

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rightly so. What would matter is the assessment of whether we can have a

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more prosperous economy but also an equal society, that we can marry

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natural resources and human resources and talents together in a

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better way than Westminster control allows us to do. If we win that

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argument, we win the referendum. One of the most vexed issues has been

:26:20.:26:23.

the currency. You say quite rightly that the Scots have the power to

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decide their own future in their own referendum. A poll this morning in

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Scotland on Sunday suggests 60% of English voters don't want to go into

:26:32.:26:37.

a currency union with an independent Scotland, don't they also have a

:26:38.:26:42.

right to say no? That was a published poll from yesterday. If

:26:43.:26:47.

you examine the question -- populist pal. If you examine the question I

:26:48.:26:52.

have great sympathy for being less people trying to answer it. We are

:26:53.:27:00.

not -- sympathy for the English people trying to answer it. We are

:27:01.:27:03.

saying let's keep sterling, we're not asking them to move to a

:27:04.:27:08.

different currency, just to keep the pound that we both have. It is

:27:09.:27:14.

Scotland's pound as well as London's pound. It is a shared

:27:15.:27:18.

currency and we think it is perfectly reasonable to say that

:27:19.:27:21.

after independence, we can continue to share a currency for the bid has

:27:22.:27:25.

been done before rather successfully to in Belgium and Luxembourg for

:27:26.:27:31.

about 80 years -- between Belgium and Luxembourg. Does it not mean

:27:32.:27:38.

that each side has to agree? The point I make is that the people in

:27:39.:27:43.

the rest of the UK are not being asked to change their currency and

:27:44.:27:46.

parliament would be well able to decide that. The point about keeping

:27:47.:27:50.

the pound, it is not just in the interest of Scotland, we have been

:27:51.:27:55.

outlining why we think it is in the joint interests of Scotland and the

:27:56.:28:00.

rest of the UK. We have 100 days to go, many interesting and enjoyable

:28:01.:28:08.

jousts, is this going to be your last hurrah? If you don't win, we

:28:09.:28:10.

have another last hurrah? If you don't win, we

:28:11.:28:16.

stay on? I thought you were going to say it would be my last appearance

:28:17.:28:19.

on your programme! There will be plenty of opportunities. Lucky

:28:20.:28:29.

Britain! Whatever happens, I will continue to serve the people of

:28:30.:28:32.

Scotland in whatever capacity they choose for me to do so. We are

:28:33.:28:37.

anticipating a yes vote on September 18, and the chance to take matters

:28:38.:28:42.

into our own hands and to take charge of our own destiny in

:28:43.:28:49.

Scotland. You won't come back yourself leading another referendum

:28:50.:28:54.

campaign? I have said a number of times that my view on the referendum

:28:55.:28:58.

and the Constitution, it is one's inability call generation -- once in

:28:59.:29:07.

a political generation. This is the first Democratic consented

:29:08.:29:10.

opportunity to vote for independence. People are talking

:29:11.:29:13.

about it is the most important vote for 300 years, it is the first

:29:14.:29:18.

aquatic vote on Scottish independence. It is a fantastic --

:29:19.:29:23.

first democratic vote. It is a fantastic opportunity that we should

:29:24.:29:27.

grasp with both hands. Thank you for joining us.

:29:28.:29:29.

What message should Labour take from the recent European

:29:30.:29:31.

Some in the party see UKIP's success as a big threat and are urging

:29:32.:29:37.

Ed Miliband to send out a tougher message on immigration.

:29:38.:29:40.

Others are warning him not to become a pale imitation of Nigel Farage.

:29:41.:29:44.

The Shadow Home Secretary says Labour should be ready to

:29:45.:29:46.

But what exactly would Labour do, if it gets into government?

:29:47.:29:50.

Yvette Cooper is with me now - welcome. I must ask you about the

:29:51.:30:04.

current front page row between Theresa May and Michael Gove. It is

:30:05.:30:11.

very serious what has happened. It has been a very chaotic government

:30:12.:30:14.

over something so important. There are concerns in the schools in

:30:15.:30:16.

Birmingham and how over something so important. There

:30:17.:30:19.

are concerns in the schools in you make sure it has been a balanced

:30:20.:30:26.

education. There are problems in communities which prevent strategy.

:30:27.:30:28.

Having gaps because of the department not working together.

:30:29.:30:35.

First of all, in terms of the positions of the two ministers

:30:36.:30:40.

involved, you know from your own experience in government it is not

:30:41.:30:46.

entirely unique. I have never seen it on something so important which

:30:47.:30:51.

has implications for national security. The Education Secretary

:30:52.:30:55.

has apologised. The special adviser to the Home Secretary has resigned.

:30:56.:30:59.

We have heard nothing from the Home Secretary. It looks pretty clear she

:31:00.:31:09.

has breached the Ministerial Code. The response -- the Prime Minister

:31:10.:31:14.

is responsible for enforcing the Ministerial Code. He needs to act

:31:15.:31:19.

and make sure they are forcing these issues. What should Theresa May do

:31:20.:31:25.

now? She needs to come out publicly and answer what she did to publish

:31:26.:31:30.

this letter. The Ministerial Code says that ministerial correspondence

:31:31.:31:39.

in Cabinet committee should not be published. She presumably must have

:31:40.:31:47.

authorised that. Why has she not apologised and recognise that? There

:31:48.:31:52.

are questions to answer. We need to recognise the more important issues

:31:53.:31:56.

in terms of schools and communities are addressed. Do you think there is

:31:57.:32:02.

a problem with Islamist propaganda being enforced and girls being full

:32:03.:32:09.

to sit at the back of classrooms? Is it a real description of what is

:32:10.:32:16.

going on? We need to look at the Ofsted report. It is about children

:32:17.:32:20.

not getting a balanced education, not having a balanced curriculum.

:32:21.:32:27.

The problem is the reforms from Michael Gove have made it harder to

:32:28.:32:31.

have the kind of local oversight that you need to prevent problems

:32:32.:32:38.

arising and make sure the curriculum is balanced. He did not investigate

:32:39.:32:43.

this earlier that he has made it harder for local authorities as

:32:44.:32:50.

well. It is not necessarily the case that handing it to the local

:32:51.:32:54.

authority is the problem. Do you need to have a centralised attack on

:32:55.:33:00.

the draining the swamp issue? I think you need a broad strategy to

:33:01.:33:06.

prevent extremism. It is becoming particularly significant in Syria

:33:07.:33:10.

and the Syrian conflict. Young people are potentially becoming

:33:11.:33:16.

radicalised and returning. Is it more widespread than Birmingham?

:33:17.:33:21.

More widely around communities. It is really important. You have gaps.

:33:22.:33:29.

What Theresa May has done is to treat to a police -based approach.

:33:30.:33:34.

Police work is really important, particularly when there is a concern

:33:35.:33:37.

that someone is getting involved in violent extremism. You also need to

:33:38.:33:42.

work closely with communities and support communities who want to take

:33:43.:33:46.

a lead in tackling extremism, as many of them do. That work seems to

:33:47.:33:55.

have stopped altogether. The departments are not resolving a

:33:56.:33:58.

because they are too busy fighting each other. You took quite a

:33:59.:34:03.

whacking from UKIP. There are lots of areas around the country where

:34:04.:34:06.

labour is fighting UKIP quite hard. Do you think the party needs to

:34:07.:34:13.

think again and come up with new messages? We did increase the number

:34:14.:34:18.

of councillors. We won 300 more councillors. You are raising the

:34:19.:34:24.

issue about UKIP. UKIP, I think, has been playing on people 's fears and

:34:25.:34:30.

exploiting that. People do have legitimate concerns about

:34:31.:34:33.

immigration. That is why we have said reforms are needed on

:34:34.:34:35.

immigration, on things like stronger border controls. On the impact of

:34:36.:34:42.

immigration, jobs and wages. I think the concern that people have most

:34:43.:34:48.

seriously is that. Immigration over many years has brought great

:34:49.:34:52.

benefits to Britain and is important for the future. White rapper you

:34:53.:34:55.

announce these policies in the past before you got damaged by UKIP. --

:34:56.:35:03.

you announced these policies in the past. You like we've found talking

:35:04.:35:06.

about immigration rather than shouting about it does help stop we

:35:07.:35:15.

have found talking about immigration. It is about stopping

:35:16.:35:20.

dodgy employers and firms exploiting it. Getting rid of zero hours

:35:21.:35:27.

contracts. If those are the answers, you would have done much better but

:35:28.:35:33.

it is said you are failing old-fashioned communities, the

:35:34.:35:37.

people the Labour Party was founded to protect. This is because of

:35:38.:35:43.

unlimited migration within the European Union. Are you prepared to

:35:44.:35:48.

do anything about this? What Rachel and Hazel and others have said is

:35:49.:35:52.

the same as Ed Miliband has said. Working people are feeling left

:35:53.:35:57.

behind. All I am asking is what she will do about it? Concerning Europe,

:35:58.:36:09.

I do think rules should be made about introducing stronger

:36:10.:36:12.

transitional controls for new countries arriving and also changes

:36:13.:36:16.

to the rules around people who have committed crimes. You should not

:36:17.:36:21.

have free movement for criminals. We have talked before about the impact

:36:22.:36:26.

of employers and dodgy employers. Do not underestimate the importance.

:36:27.:36:30.

Nobody is addressing this. UKIP 's policies would make it worse by

:36:31.:36:34.

making it easier for employers to undercut local wages and jobs. If

:36:35.:36:39.

that is not dealt with, we would see growing concern and UKIP would

:36:40.:36:42.

continue to exploit it. We cannot imitate UKIP. We need to take them

:36:43.:36:44.

on. Historically,

:36:45.:36:47.

the head of the International Monetary Fund has always been

:36:48.:36:49.

a figure of immense influence. With the election of Christine

:36:50.:36:52.

Lagarde to the role of World Finance Minister, the Fund's first female

:36:53.:36:55.

director has really made her mark. Last year, the IMF caused

:36:56.:36:58.

a furore by accusing George Osborne of "playing with fire" by insisting

:36:59.:37:01.

on austerity in the UK. When I met her there,

:37:02.:37:04.

she told me why the IMF is now inclined to give Britain

:37:05.:37:16.

a fairly clean bill of health. We do see the UK

:37:17.:37:20.

economy as growing well. It is one of the highest growth rates of the

:37:21.:37:25.

advanced economies at the moment. Added to which, that growth is

:37:26.:37:31.

fuelled both by consumption but also now by investment. Not just public

:37:32.:37:36.

investment, as we had recommended earlier on, but also with private

:37:37.:37:40.

investment. Export is lagging behind a little bit. Those two big

:37:41.:37:46.

cylinders of growth, if you will, consumption and investment, are

:37:47.:37:50.

fuelling growth which, in our view, makes it more sustainable than if it

:37:51.:37:55.

was fuelled exclusively by consumption as was feared a few

:37:56.:37:59.

months back. So, that is a pretty sustainable and good position to be

:38:00.:38:06.

in. But, there are obviously risks on the horizon. We see two

:38:07.:38:11.

categories of risks - the domestic risks, the external risks. The

:38:12.:38:18.

domestic risks are number one, relatively low productivity, which

:38:19.:38:24.

might go away and I am happy to discuss that and the second is the

:38:25.:38:29.

housing rising prices. You say rising prices, you do not think a

:38:30.:38:36.

boom at this point or a bubble? No. What our team has clearly seen and

:38:37.:38:40.

acknowledge is that the housing market in the UK is multifaceted.

:38:41.:38:46.

The secondary risks are external risks. The Eurozone? The slow down

:38:47.:38:53.

in emerging market economies. We read that you are a friend of

:38:54.:39:11.

George Osborne. Has he taken you to one side and said, I am terribly

:39:12.:39:15.

sorry. We accused you of playing with via a year ago. You were wrong

:39:16.:39:26.

-- we were wrong and you were right. We said we had underestimated growth

:39:27.:39:30.

for the UK. Our forecast had been proven wrong by the reality of

:39:31.:39:40.

economy developments. Have you apologised to George Osborne for

:39:41.:39:45.

what he said a year ago? He resisted very strongly, as she would. Did you

:39:46.:39:55.

apologised to him for it? I completely acknowledged we

:39:56.:39:58.

underestimated growth. Do I have to go on my knees and bend over

:39:59.:40:04.

backwards? We underestimated it. We got it wrong. We acknowledged it. We

:40:05.:40:09.

were not the only ones to get it wrong. We were in good company. Most

:40:10.:40:15.

forecasters got it wrong. Clearly, the confidence building that has

:40:16.:40:20.

resulted from the economic policies adopted by the Government has

:40:21.:40:25.

surprised many of us. I promise this is not rich will media flagellation,

:40:26.:40:30.

some people say, the British economy has some serious problems with its

:40:31.:40:36.

fragility, too much consumer debt, too much boom aspects of the housing

:40:37.:40:41.

market, exports are not strong enough, industrial investment is not

:40:42.:40:45.

very good. You in danger of being too positive, just as you are too

:40:46.:40:52.

negative last time? If the recovery had boosted essentially by

:40:53.:40:56.

consumption, our take would have been different. The fact that it was

:40:57.:41:02.

consumption led and now private investment is taking the baton of

:41:03.:41:07.

that race for gross, I think is comforting and leads us to believe

:41:08.:41:12.

it is much more sustainable going forward. You are right to mention

:41:13.:41:18.

exports. Exports is sub Jude and could certainly be improved over

:41:19.:41:25.

time. -- subdued. If productivity increases going forward, that should

:41:26.:41:31.

help with exports. Overall, what you are saying sounds like an

:41:32.:41:34.

endorsement of the chancellorship of George Osborne. We are not focusing

:41:35.:41:38.

on endorsing one group or the other, taking sides if you will.

:41:39.:41:42.

That is often what journalists would like to corner us over. It has been

:41:43.:41:48.

under his watch and he has been quite steely in the face of

:41:49.:41:53.

criticism in sticking to his course. We have to look at numbers. What

:41:54.:41:59.

numbers are telling us is that growth is one of the strongest in

:42:00.:42:02.

the advanced economies and seems to be sustainable based on its -- it

:42:03.:42:10.

being too strong going forward. Inflation has been lowered. Getting

:42:11.:42:17.

the financial sector healthier. We hope reforms will continue. I

:42:18.:42:21.

personally hope there will be a strong emphasis on the change of

:42:22.:42:31.

culture in that particular sector. Strengthen the institution is, well

:42:32.:42:36.

resourced and totally independent is key to that happening. We believe

:42:37.:42:41.

that is important. That is the overall landscape as we see it at

:42:42.:42:46.

the moment and it is rather good. We are not back to where we were

:42:47.:42:51.

pre-the crash? We have not recovered all the way. We are getting there.

:42:52.:42:57.

The European Commission said there should be higher taxes in this

:42:58.:43:00.

country to build more public investment and so forth. Do you

:43:01.:43:06.

agree with that? The mixture between tax and spending cuts is something

:43:07.:43:15.

that we regard as fairly balanced and the right mix, if you well. Do

:43:16.:43:21.

you do not really agree with that? We do not see massive increased tax

:43:22.:43:27.

as recommendable at the moment. I guess you are the most powerful

:43:28.:43:31.

woman in the world. You have to be one of them. When you are in that

:43:32.:43:35.

position, lots of people try to find two other jobs. People have asked if

:43:36.:43:40.

you are interested in the top European job. I think the only

:43:41.:43:48.

position that has not been debated for me at the moment is that can.

:43:49.:43:55.

Queen of England, I do not think? I do not want to offend your who is on

:43:56.:44:01.

the shores of my region, Normandy, at the moment. Look, I have a job! I

:44:02.:44:08.

am not a candidate to any other position. I think it is a rather

:44:09.:44:12.

important job at the moment. We are not done yet with the crisis. We

:44:13.:44:16.

need to continue helping countries at the crisis. The IMF, I believe,

:44:17.:44:22.

is a strong institution that needs continuity going forward. I intend

:44:23.:44:28.

to participate in that. I can see this is very irritating to keep

:44:29.:44:33.

being asked about it hit is very persistent. There is a disagreement

:44:34.:44:39.

going on at the moment. Lots of people in London would love you to

:44:40.:44:43.

be a candidate for the job. I you saying there is no chance for that

:44:44.:44:50.

at all? It is very kind of them. I am flattered and honoured. I would

:44:51.:44:54.

very much hope, being a European at heart, born in France and having

:44:55.:45:01.

been brought up in Normandy, I would hope that everybody would spend as

:45:02.:45:06.

much time on, what do we do with Europe? Where is it heading? That is

:45:07.:45:10.

critical for the future. Rather than, what is he going to do? What

:45:11.:45:16.

is he going to do? All the rest of it. What about the structures of

:45:17.:45:22.

Europe at the moment. Is there a serious disconnect between the

:45:23.:45:27.

people in Europe European elite? In many countries, we have seen the

:45:28.:45:31.

revolt of anti-European parties, anti-Brussels parties. Is there a

:45:32.:45:37.

serious problem to be addressed? Where I see the strongest connection

:45:38.:45:42.

is when I talked to my children. They are in their mid-20s. They feel

:45:43.:45:47.

very much French but they feel Europeans. Many of their friends are

:45:48.:45:51.

going on in Rasmus programmes, moving from one country to the other

:45:52.:45:56.

without border checking points for Europeans, using the same currency

:45:57.:46:00.

when they are within the Eurozone. We regard that as a given, it is

:46:01.:46:08.

granted. When I look at the 70th anniversary of D-Day, it was not

:46:09.:46:12.

granted in those days. We should highly valued the journey that our

:46:13.:46:18.

grandparents, parents have taken for us, and be a bit inventive about how

:46:19.:46:23.

we build a future. At some point clearly you will leave the job. Do

:46:24.:46:27.

you see a future with other French politics? I will be a happy

:46:28.:46:33.

grandmother. You will retire and watch the waves in Normandy, will

:46:34.:46:35.

you? From my hometown in Normandy. The head of the IMF,

:46:36.:46:40.

Christine Lagarde. I'm joined by the Foreign Secretary,

:46:41.:46:49.

William Hague - good morning. In terms of self-inflicted wounds,

:46:50.:46:58.

the Theresa May and Michael Gove row is something of a belter. There has

:46:59.:47:04.

been a disciplinary matter which the Prime Minister has dealt with in a

:47:05.:47:08.

very clear way, there will be discipline within the government.

:47:09.:47:12.

The main thing is the issue itself, tackling extremism in schools. Being

:47:13.:47:17.

no doubt that the government will be very robust and clear about anything

:47:18.:47:22.

that puts children in our schools at risk of extremism and at risk of

:47:23.:47:32.

their safety and learning. The Home Secretary's special adviser has been

:47:33.:47:35.

sacked because the Home Secretary's website revealed a statement

:47:36.:47:40.

publicly. Surely the Home Secretary must have known and she should be

:47:41.:47:46.

apologising? This has been looked into by the Cabinet Secretary.

:47:47.:47:49.

Michael Gove has written his letters of apology. The Home Secretary

:47:50.:47:53.

special adviser has indeed reside. That is clearly the appropriate

:47:54.:47:59.

response to this investigation -- indeed resigned. We are talking

:48:00.:48:03.

about ministers doing a fantastic job for this country. There has been

:48:04.:48:08.

a disciplinary matter but this is the Home Secretary presiding over a

:48:09.:48:14.

sustained reduction in crime... They are ministers taking answer of each

:48:15.:48:16.

other. If Theresa May knew her department was leaking by that

:48:17.:48:20.

information, surely she should have to apologise as well as Michael

:48:21.:48:26.

Gove. What has happened is the product of the Cabinet Secretary's

:48:27.:48:30.

investigation. After that the Prime Minister is clear that Michael Gove

:48:31.:48:34.

should apologise and the necessary consequences would follow for the

:48:35.:48:39.

Home Secretary's special adviser. That is the right thing to do, a

:48:40.:48:42.

good Prime Minister making sure there is discipline in the

:48:43.:48:48.

government, and David Cameron is equally timid to make sure this

:48:49.:48:51.

challenge is dealt with. The Education Secretary will make a

:48:52.:48:57.

statement tomorrow about the result of the Ofsted investigations --

:48:58.:48:59.

David Cameron is equally determined to make sure. We will deal with this

:49:00.:49:05.

very rigorously Indy. If this had happened in a school everybody would

:49:06.:49:10.

be put on the naughty step. -- rigorously indeed. Is this a

:49:11.:49:17.

shambles? Absolutely not. The issue has to be dealt with but seen in the

:49:18.:49:23.

context of a Home Secretary bringing down crime, online Education

:49:24.:49:25.

Secretary who is bringing about the most important changes and

:49:26.:49:31.

improvements in decades, I don't think what has happened is going to

:49:32.:49:34.

damage the overall record and achievements of the government. It

:49:35.:49:38.

is clear that team discipline will be maintained. The Prime Minister is

:49:39.:49:42.

meeting Angela Merkel and others tomorrow to talk about the junk

:49:43.:49:47.

question. Can you stop Jean Claude Junker becoming President of the

:49:48.:49:59.

European Commission? On the technical question of a veto, it is

:50:00.:50:03.

decided by majority voting. It is important in our view that a range

:50:04.:50:09.

of candidates are looked at. This is only one of the top jobs being

:50:10.:50:14.

decided in the European Union. There are four or five such jobs. It is

:50:15.:50:19.

very important there is a political balance, a geographic balance, it is

:50:20.:50:25.

important there are women in the top jobs. After the severity of the

:50:26.:50:29.

words that have been used, it would be a disaster for Britain if Mr

:50:30.:50:36.

Junker got the job. The important thing is that the European Union is

:50:37.:50:40.

focused on reform and change, it is not going to deliver what the people

:50:41.:50:48.

of any European country needs if it carries on as business as usual. The

:50:49.:50:52.

point the Prime Minister has been making is that the people chosen to

:50:53.:50:56.

lead the commission, the council, have to be chosen with that in mind.

:50:57.:51:02.

Up to now the Prime Minister has said Junker is not that kind of

:51:03.:51:06.

person. If he wins the battle, you will kiss and make up and do a deal

:51:07.:51:12.

with him? We will come with other governments, sort out who is going

:51:13.:51:17.

to fulfil these positions. Most importantly, that the next European

:51:18.:51:21.

Commission is one that delivers flexibility, democratic

:51:22.:51:23.

accountability, freer trade with the west of the world -- rest of the

:51:24.:51:30.

world. That is what matters rather than the personalities. That is what

:51:31.:51:34.

we are focusing on. It includes having individuals that will push

:51:35.:51:39.

that agenda. The connection is that the individuals will drive or not

:51:40.:51:43.

drive. Do you have a candidate you would like to see get that job?

:51:44.:51:49.

There are talented candidates around Europe. I am not going to set up a

:51:50.:51:52.

candidate to embarrass a candidate today, who will then be attacked by

:51:53.:51:59.

the media or other countries. We will keep our counsel, keep in close

:52:00.:52:03.

touch with other countries, the Prime Minister will have further

:52:04.:52:06.

discussions over the next few days. The important thing for us is the

:52:07.:52:10.

trajectory of the European Union and our ability to deliver reform,

:52:11.:52:16.

renegotiation... If you get the wrong people you will not be able to

:52:17.:52:20.

negotiate what you need ahead of the referendum as promised. This is why

:52:21.:52:23.

we need the right people. This is why we need the right people. This

:52:24.:52:32.

it is what we want Europe to achieve and Britain to achieve, rather than

:52:33.:52:36.

the personalities of the individuals. President Putin has

:52:37.:52:42.

come over, do you think he is having second thoughts, starting to rein

:52:43.:52:46.

back the dog is a bit in Ukraine? The test of that will be over the

:52:47.:52:52.

coming days, will Russia stop allowing arms to go over the border,

:52:53.:52:56.

people to go over the border into Ukraine who then join violent

:52:57.:52:59.

supporters groups? We look to Russia to take action on that, the Prime

:53:00.:53:04.

Minister made it clear to President Putin a few days ago. Do you see any

:53:05.:53:09.

change question not There is some change in tone. President Putin had

:53:10.:53:17.

a normal meeting with the new president of Ukraine and it is very

:53:18.:53:21.

important that Russia and Ukraine discuss things together. We will

:53:22.:53:24.

keep up this balance of pressure on Russia, including the possibility of

:53:25.:53:29.

more wide-ranging sanctions and diplomacy with Russia. The

:53:30.:53:35.

diplomatic doors are fully open. We were talking about the use of rape

:53:36.:53:45.

in a -- as a weapon of war, Angelina Jolie will be at a summit with you.

:53:46.:53:49.

It will be co-chaired by Angelina Jolie and me, it is like no other

:53:50.:53:53.

summit. People can come, your viewers can come from Tuesday to

:53:54.:53:57.

Thursday, they don't have to register in advance, there are 150

:53:58.:54:02.

fringe meetings, people who want to join us in ending sexual violence in

:54:03.:54:06.

conflict can comfort of this is the most important event in a two-year

:54:07.:54:10.

campaign that Angelina Jolie I have been waging EU will hear about it

:54:11.:54:17.

over the week. -- you will hear about it.

:54:18.:54:25.

Now over to Sian for the news headlines.

:54:26.:54:29.

The Shadow Home Secretary Yvette Cooper also told this programme that

:54:30.:54:36.

she thinks Theresa May needs to come out publicly and explain what she

:54:37.:54:40.

knew in advance about the publication of a letter at the

:54:41.:54:43.

centre of a row with her Cabinet colleagues on the Michael Gove. --

:54:44.:54:47.

Cabinet colleagues, Michael Gove. The First Minister of Scotland has

:54:48.:54:50.

said he was "surprised" by President Obama's comments on the

:54:51.:54:53.

Scottish Independence Referendum. Speaking earlier on this programme,

:54:54.:54:57.

Alex Salmond said that if Scotland did become independent, "America

:54:58.:55:00.

will have two allies, not one". Mr Salmond referred to

:55:01.:55:02.

the referendum as a moment that comes along only

:55:03.:55:04.

"once in a political generation". William Hague is still here,

:55:05.:55:07.

and we've been joined again by Yvette Cooper.

:55:08.:55:18.

You heard Christine Lagarde there, she thinks the British

:55:19.:55:20.

economy is in pretty good shape now. She is endorsing the austerity

:55:21.:55:36.

programme. Finally the economy is growing, thank goodness for that,

:55:37.:55:40.

but too many people are not feeling it, too many people are being left

:55:41.:55:45.

behind across the country. The IMF are right to one about some of the

:55:46.:55:49.

concerns about the housing market, we have got to build more homes or

:55:50.:55:53.

we will see an ongoing balance of power in the future. The whole world

:55:54.:55:59.

admires what this country is doing. It is only the British Labour Party

:56:00.:56:04.

that cannot see that. There are a lot of people across the country

:56:05.:56:07.

that don't admire the fact that their cost of living has gone

:56:08.:56:08.

backwards. In a moment,

:56:09.:56:10.

we'll hear from Eddi Reader - she had a series of hits with

:56:11.:56:14.

the band Fairground Attraction back in the 1980s and is now pursuing

:56:15.:56:17.

a very successful solo career. She's headlining at the opening

:56:18.:56:20.

concert for the Commonwealth Games in Glasgow next month, and her new

:56:21.:56:23.

album, Vagabond, is out now. Eddi -

:56:24.:56:27.

what are you going to play for us? It is a song about leaving home and

:56:28.:56:36.

standing on your own two feet, it is called baby's boat.

:56:37.:56:39.

We're back next week with the "Better Together" view from

:56:40.:56:41.

Scotland, the gutsy American actress Kathleen Turner and much more.

:56:42.:56:44.

But right now, as promised, Eddi Reader.

:56:45.:57:04.

# Baby's boat. # A silver moon, sailing in the sky.

:57:05.:57:13.

# Baby's fish. # For dreams.

:57:14.:57:22.

# Fishing near and far for dreams. # Sale, baby, sale.

:57:23.:57:30.

# Out upon the sea. # Only don't forget, sail back to

:57:31.:57:33.

me. # Fish for dreams.

:57:34.:57:48.

# You are fishing near and far. # Is like a silver moon.

:57:49.:57:55.

# His bait a Silver Star. # Sale, baby, sale, out upon the

:57:56.:58:00.

sea. # Only don't forget.

:58:01.:58:10.

# Sail back to me. # Only don't forget.

:58:11.:58:19.

# Sail back to me. # Only don't forget, sail back to

:58:20.:58:45.

me. # Sail, baby, sail, out upon the

:58:46.:58:54.

sea. # Only don't forget.

:58:55.:58:58.

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