09/10/2016

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:00:00. > :00:08.This week's crash in the value of sterling was a complicated story.

:00:09. > :00:12.It wasn't all down to Brexit, but it was a salutary warning

:00:13. > :00:15.of what might happen if the government gets this

:00:16. > :00:21.After some euphoria at last week's Tory party conference,

:00:22. > :00:40.we're back to the real world of hard decisions and tough choices.

:00:41. > :00:46.And not just the real world but a dangerous world too.

:00:47. > :00:49.I'll be joined by the Defence Secretary Michael Fallon.

:00:50. > :00:52.So far, we have very little idea about Labour's plans for Brexit.

:00:53. > :00:57.I'm joined by Keir Starmer, the party's new spokesman

:00:58. > :01:10.Also looking back on nearly half a century in politics,

:01:11. > :01:15.I've been talking to one of the Tory party's last unabashed

:01:16. > :01:28.The decisions this government makes about what is the relationship with

:01:29. > :01:31.the rest of the world politically and economically will make a huge

:01:32. > :01:34.difference to our children and grandchildren.

:01:35. > :01:37.Joining me to sift through the Sunday papers this morning,

:01:38. > :01:38.the Conservative commentator and expert in American

:01:39. > :01:40.politics, Tim Montgomerie, the journalist Kate Andrews,

:01:41. > :01:43.an observer of the US Republican party, and after a rollercoaster

:01:44. > :01:45.week on the currency markets, Stephanie Flanders from JP

:01:46. > :01:51.If the news makes you feel a little blue, we'll lift your spirits

:01:52. > :02:02.at the end of the show with Michael Kiwanuka.

:02:03. > :02:06.That's all after after the news read this morning by Ben Thompson.

:02:07. > :02:11.Donald Trump and Hillary Clinton are making final preparations

:02:12. > :02:13.for what is likely to be one of the most acrimonious US

:02:14. > :02:18.Mr Trump has rejected calls to quit the race over video footage

:02:19. > :02:21.in which he was heard making lewd and offensive remarks about women.

:02:22. > :02:24.But he's under severe pressure going into tonight's TV showdown.

:02:25. > :02:28.Senior Republicans, including former Secretary of State Condoleezza Rice,

:02:29. > :02:36.Donald Trump at his landmark Trump Towers building

:02:37. > :02:41.in New York yesterday faced a new reality.

:02:42. > :02:44.The 11-year-old video released over the weekend has caused widespread

:02:45. > :02:47.shock and outrage across America, and has plunged the Republican

:02:48. > :02:54.On the tape, made as part of a TV promotion, a live microphone picks

:02:55. > :03:13.up unguarded, obscene comments made by Donald Trump about women.

:03:14. > :03:16.I said it, I was wrong on and I apologise.

:03:17. > :03:18.His video apology did little to help, amid calls for him

:03:19. > :03:25.But condemnation has come from the highest ranks

:03:26. > :03:28.of the Republican party, including his running mate who called

:03:29. > :03:33.More than a dozen Republican senators say they will not

:03:34. > :03:36.support him, including former candidate John McCain.

:03:37. > :03:40.Republicans are feeling the backlash on the campaign trail.

:03:41. > :03:45.There is a bit of an elephant in the room.

:03:46. > :03:53.Tonight in St Louis, the second presidential debate takes place.

:03:54. > :03:57.America may not have seen reality TV quite like this before.

:03:58. > :04:03.Haiti is beginning three days of national mourning

:04:04. > :04:07.after Hurricane Matthew killed more than 900 people.The first cases

:04:08. > :04:10.of cholera have been confirmed and aid workers are warning more

:04:11. > :04:20.Overwhelmed by water and now by injuries,

:04:21. > :04:22.hospitals in Haiti's hurricane hit south-west are

:04:23. > :04:28.People hurt during the storm are being treated, but with medical

:04:29. > :04:30.care already an issue before the disaster,

:04:31. > :04:34.it is proving to be a major challenge for the country to cope.

:04:35. > :04:37.The number of dead is now close to 900 and the figure

:04:38. > :04:44.The government have called for three days of official mourning,

:04:45. > :04:46.but the death toll is likely to keep increasing.

:04:47. > :04:49.People are crying and praying, not only for the dead,

:04:50. > :04:58.Yesterday, we registered 438 dead in my region.

:04:59. > :05:01.We have 25 people suffering from cholera.

:05:02. > :05:05.We have a lot of wounded people, and the situation is dire.

:05:06. > :05:10.Without clean water, concerns are growing

:05:11. > :05:15.Sewage getting into drinking water supplies is already seeing

:05:16. > :05:18.new cases in affected areas, but people also need

:05:19. > :05:24.It is estimated by the authorities in Haiti that some 350,000 people

:05:25. > :05:29.need help and slowly aid is reaching some places.

:05:30. > :05:32.The first consignment of supplies from the UK has arrived

:05:33. > :05:36.in the south-west, ready to be distributed.

:05:37. > :05:38.But, with many of the most affected areas still cut off,

:05:39. > :05:41.the people of Haiti are hoping for more assistance so that this

:05:42. > :05:49.natural disaster does not become a humanitarian one.

:05:50. > :05:51.Hurricane Matthew has now brought heavy flooding to the historic town

:05:52. > :05:56.One of the most powerful storms on record, Matthew continues

:05:57. > :05:59.to sweep up the east coast of the United States.

:06:00. > :06:02.At least ten people have died and nearly two million homes

:06:03. > :06:09.A former Liberal Democrat peer has joined the Conservative party.

:06:10. > :06:11.Baroness Manzoor, who resigned the Lib-Dem whip last month over

:06:12. > :06:14.the party's policies on Europe, praised what she said

:06:15. > :06:20.was Theresa May's clear leadership on Brexit.

:06:21. > :06:23.A study by a group of leading defence analysts says that

:06:24. > :06:26.Islamic State militants have lost more than a quarter of the territory

:06:27. > :06:30.The report concludes that the group's area of control has

:06:31. > :06:34.shrunk by just over a quarter since its peak in January 2015.

:06:35. > :06:37.The militants' losses have included significant areas

:06:38. > :06:39.near to the Turkish border, and a key airbase to

:06:40. > :06:57.If we are interested in our own politics, there is a huge amount of

:06:58. > :07:02.blowback from the Conservative Party conference and a general sense we

:07:03. > :07:08.are moving toward a hard Brexit, not even trying to stay inside the

:07:09. > :07:12.single market. The Observer is a 55 page of how and pain and outrage

:07:13. > :07:19.from liberal London, including a full-page editorial. The Sunday

:07:20. > :07:24.Times ways in with Steve Hilton, David Cameron's blue skies thinker,

:07:25. > :07:32.on a ferocious attack on Theresa May over Brexit. He says it is being

:07:33. > :07:38.done wrongly. The Sunday Telegraph and every paper has Donald Trump on

:07:39. > :07:44.the front page. But their political story about us says there are fears

:07:45. > :07:50.that a Cabinet split on Brexit is irreparable. If you are interested

:07:51. > :07:54.in the outside world today, you really have to read the Sunday

:07:55. > :07:58.Mirror, a splendid series of reports from the appalling stuff going on in

:07:59. > :08:06.Aleppo and Syria. Very hard questions for the Russians and for

:08:07. > :08:12.us on the sidelines. The Mail on Sunday has a story about lawyers

:08:13. > :08:18.taking ?480 million of the NHS in medical compensation. Let's start

:08:19. > :08:25.with you, you are a Republican. I have associated with the party for

:08:26. > :08:32.most of my life pragmatically. It is heartbreaking as a pragmatic,

:08:33. > :08:36.free-market, classical liberal. You sleep the party in economics is

:08:37. > :08:39.where I was at and all of a sudden the celebrity comes along and

:08:40. > :08:47.hijacked the party. Is this the end for Donald Trump. I am hesitant to

:08:48. > :08:50.say, but it should be. This glorified of sexual assault should

:08:51. > :08:55.be the end, but how many times have we thought it was going to be the

:08:56. > :09:00.end with Donald Trump? He just keeps going. He has lost so many people,

:09:01. > :09:08.Kaunda leaves arise, Robert De Niro, Arnold Schwarzenegger. Yes, he has

:09:09. > :09:12.weighed in, he said when he became a citizen he associated with the

:09:13. > :09:18.Republican Party. Those are the kind of people the party needs and Donald

:09:19. > :09:25.Trump is throwing them away. We have always known these things about

:09:26. > :09:30.Donald Trump. We have always known this, but we have all been guilty,

:09:31. > :09:35.the media, the Americans, and the world at large, of enjoying watching

:09:36. > :09:39.a celebrity run for the White House and now we're seeing the ugly side

:09:40. > :09:42.of that. I said people have been jumping ship for a long time and you

:09:43. > :09:48.have an interesting piece on the Internet. It is a variety of New

:09:49. > :09:53.York Times writers and what they had done on this iPad edition is on one

:09:54. > :09:57.side of the column they have listed various things he has said,

:09:58. > :10:01.controversial remarks. On the other side they have listed Republicans

:10:02. > :10:06.who have abandoned support for him. At the beginning you can see things

:10:07. > :10:12.like his remarks about Mexicans bringing drugs and crime into the

:10:13. > :10:16.country, they were rapists. Not many Republicans deserted him. As you go

:10:17. > :10:20.down right until the current controversy you can finally see that

:10:21. > :10:25.Republicans are abandoning him in large numbers, including John McCain

:10:26. > :10:29.and Kaunda leaves arise. Just as you are saying a minute ago, those

:10:30. > :10:33.Republicans are saying they are shocked at the latest revelations,

:10:34. > :10:35.but they have not been paying attention. It has been obvious for a

:10:36. > :10:49.long time that this man's views on race, security and women

:10:50. > :10:52.were unacceptable and they were willing to turn a blind eye when

:10:53. > :10:54.they thought he could win the presidency. Now finally his opinion

:10:55. > :10:57.polls are turning side. Part of the dynamic here is that there were

:10:58. > :11:00.people thinking, if he does win, because he keeps seeming to stay in

:11:01. > :11:04.the race and has the support that people in Washington and the East

:11:05. > :11:09.coast of America do not understand, you will be in his administration.

:11:10. > :11:13.Some senior, greybeard figures did not want to be too far off the

:11:14. > :11:20.record if they thought he was going to win. I am interested in the

:11:21. > :11:22.technical question can he be stopped by the Republican Party? Can the

:11:23. > :11:30.Republican old guard get together and pull him out? There is a thing

:11:31. > :11:34.called rule nine which means three quarters of the Republican National

:11:35. > :11:39.committee, the governing body, say he is guilty of moral squalor, he

:11:40. > :11:44.can be disqualified. But it is so late and the trouble is people are

:11:45. > :11:49.voting. Withdrawing your candidate win the race is already well under

:11:50. > :11:52.way is impossible. The only thing I think that could cause him to quit

:11:53. > :12:01.the race would be if his running mate ran away. Do you agree? Yes,

:12:02. > :12:05.but it is even harder than that. The rules under rule nine suggest it is

:12:06. > :12:11.up to their discretion. If they were to come in and try to overthrow

:12:12. > :12:14.Donald trump it would raise questions about democratic

:12:15. > :12:18.legitimacy and it would seem rigged. We know the establishment does not

:12:19. > :12:24.like Donald Trump, so bid would be difficult. Tonight in the debate it

:12:25. > :12:29.is his opportunity to show his heart, which suggests he is not

:12:30. > :12:35.backing down yet. But we will not seek an apology tonight. If Donald

:12:36. > :12:38.Trump cannot restrain himself, attacking Hillary Clinton and not

:12:39. > :12:45.apologising, then Mike pence might think again. We would hope so, but I

:12:46. > :12:49.think it is heartbreaking that this evening Donald Trump gets a

:12:50. > :12:55.platform. Hillary Clinton scandals in her closet, but she will not be

:12:56. > :13:01.challenged. It is not on the debate stays. It is a tough time. Let's

:13:02. > :13:06.turn to our own matters, if we could. There is a big grass running

:13:07. > :13:10.across a double page spread in the Sunday Times which tells the story

:13:11. > :13:17.of the week on the currency markets. But the FTSE has done well and has

:13:18. > :13:22.recovered. The FTSE 100 have a lot of their earnings abroad, in fact

:13:23. > :13:26.80% of them, so whenever the pound falls, all of those foreign revenues

:13:27. > :13:31.are worth a lot more, so it looks like the market is doing well. Often

:13:32. > :13:37.we are asking politicians for more clarity and we say we do not like

:13:38. > :13:41.them to fudge. But last week we had way too much clarity from Theresa

:13:42. > :13:47.May and from so many speakers at the Conservative conference. They were

:13:48. > :13:52.being very clear in putting the concerns of immigration and

:13:53. > :13:55.political issues ahead of any conceivable economic cost. We had

:13:56. > :14:05.technical factors and maybe automated trading... And there was a

:14:06. > :14:10.flash crash. Yes they may be wanted to take away some of the things that

:14:11. > :14:15.were propping up the pound, that uncertainty of whether we would do

:14:16. > :14:18.Brexit, well, that has gone. Once those kinds of uncertainties go

:14:19. > :14:24.away, the pound does not have much to hold it. Is the pound not

:14:25. > :14:30.historically overvalued anyway and is not a good thing for us to have a

:14:31. > :14:35.lower pound? If you had asked began ten days ago, I would have said yes

:14:36. > :14:39.because we had a period when it was overvalued. If we were trying to

:14:40. > :14:43.forge a completely different relationship with Europe, a lower

:14:44. > :14:48.value for the pound goes along with that. But that means we lose money

:14:49. > :14:50.and we are poorer as a nation because we import a lot of goods

:14:51. > :15:00.which are more expensive. I think the IMF said last year that

:15:01. > :15:06.we had just about the most overvalued currency in the world, by

:15:07. > :15:12.20%. So although this is unsettling for business actually, a lower

:15:13. > :15:19.pound, because of our huge deficit in trade, is useful. I think we can

:15:20. > :15:23.get too mesmerised by the pound. What is troubling, certainly for

:15:24. > :15:27.everybody meeting in Washington last week, was this sense that so many

:15:28. > :15:32.decades of messages from the UK about openness, about the

:15:33. > :15:35.flexibility of the economy and the desire to have skilled workers and

:15:36. > :15:39.people coming from all over the world, the kind of rhetoric which

:15:40. > :15:43.was coming out of the conference last week I think was just really

:15:44. > :15:46.troubling for these senior business leaders who have had long-term

:15:47. > :15:53.relationships with the UK. They do not recognise this country. Earlier

:15:54. > :15:58.on, we said, too much clarity. Why that, we mean an ever clearer sense

:15:59. > :16:01.that as we leave the EU, we will not even try to have access to the

:16:02. > :16:07.single market without tariffs, because that is not really on offer.

:16:08. > :16:11.I wonder, as a result of all of that, how the Treasury is thinking.

:16:12. > :16:15.Philip Hammond appears to be briefing in one direction, as a

:16:16. > :16:20.so-called soft Brexit man, against the Brexiteers on the other side. I

:16:21. > :16:23.think Philip Hammond will emerge as one of the most important figures in

:16:24. > :16:29.the government. Have a powerful Brexiteer contingent at the head of

:16:30. > :16:32.government, and Mrs May herself of course not support leaving the

:16:33. > :16:39.European Union, and seems to have all their zeal of the convert. But I

:16:40. > :16:44.think what we saw was an incredibly important Tory conference last week,

:16:45. > :16:50.not only, as Stephanie said, seeming to move towards what some people

:16:51. > :16:54.call a hard Brexit I would call a clean Brexit, but actually perhaps

:16:55. > :16:58.the most interventionist Conservative policy positioning we

:16:59. > :17:00.have seen in a generation. And I think Philip Hammond is a more

:17:01. > :17:06.traditional, free-market Conservative. He is very important

:17:07. > :17:12.position where he needs to represent Conservatives the more libertarian

:17:13. > :17:17.side. Later in the show, we will hear from Ken Clarke. Another of the

:17:18. > :17:22.old Tory beasts, Lord Tebbit, has been weighing in on Teresa make or

:17:23. > :17:31.interventionist approach? You he's worried in the Mail on Sunday here.

:17:32. > :17:34.He was such a central figure in the Thatcher years, and he's worried

:17:35. > :17:38.that everything could be undone. I think there is a need for more

:17:39. > :17:42.infrastructure spending in Britain. I'm glad that post-Brexit, we are

:17:43. > :17:46.not getting rid of workers' rights, as some on the left feared. But

:17:47. > :17:52.there is a danger that the Conservative Party swings too far in

:17:53. > :17:57.the direction of a big estate. At the start, I mentioned Stephen

:17:58. > :18:02.Hilton, the famous David Cameron blue skies thinker, who has

:18:03. > :18:08.absolutely torn into Theresa May? Yes. And he's absolutely right to do

:18:09. > :18:16.so. I think this feeds into the argument about where the

:18:17. > :18:22.Conservative Party is going. Yes, spending can be good, but maybe not

:18:23. > :18:25.on HS2. As Steve Hilton points out today, these new policies coming

:18:26. > :18:29.forward, presumably which have been approved by the government and civil

:18:30. > :18:33.servants, are advocating that foreign workers might have to go on

:18:34. > :18:38.lists which will be published. They will not be published, these are

:18:39. > :18:45.private lists. He said they might as well tattoo them on the forearm!

:18:46. > :18:50.Yes, and it is extreme language but I think he is right to point it up.

:18:51. > :18:54.It is a case of open and closed Brexit. I think a lot of Brexiteers,

:18:55. > :18:57.especially on the free-market side, thought there would be an

:18:58. > :19:05.opportunity to expand into the rest of the world, and Theresa May

:19:06. > :19:11.government is not suggesting that. But it is also that things which a

:19:12. > :19:15.lot of people have been suggesting for many years, like maybe having a

:19:16. > :19:20.looser fiscal policy, investing in skills, we're kind of reaching those

:19:21. > :19:23.things in completely the wrong way, we are saying, we're going to need

:19:24. > :19:28.the skills because we are going to keep out foreigners, and we're going

:19:29. > :19:31.to inflict lots of economic damage on our economy, therefore we will

:19:32. > :19:37.need a looser policy. It's just a shame that there is not this

:19:38. > :19:43.consistent pitcher coming out of the key ministry, which is the Treasury.

:19:44. > :19:48.We said at the beginning that we did not know what Labour's policy was.

:19:49. > :19:56.And you have chosen a story from the Sunday Telegraph about a shadow,

:19:57. > :20:01.shadow Cabinet...? I thought it was amazing that Jeremy Corbyn managed

:20:02. > :20:05.to do his shadow cabinet reshuffle within 24 hours this time! It seems

:20:06. > :20:10.that unity is still a problem for the Labour Party, with those staying

:20:11. > :20:14.outside of his inner team forming their own organisation. And they're

:20:15. > :20:18.going to meet to discuss how they will vote on issues like Heathrow,

:20:19. > :20:21.and then they will tell Jeremy Corbyn, this is how they are going

:20:22. > :20:25.to do it. I'm afraid he a Conservative supporter, I'm glad

:20:26. > :20:30.that we have a Conservative government, but the lack of an

:20:31. > :20:34.opposition at a moment when the so important is a real worry. And we

:20:35. > :20:40.spoke about Americans having a horror show of reality TV this week,

:20:41. > :20:42.but Stephanie, my jaw was on the carpet as I watched Ed Balls on

:20:43. > :20:52.prescription tea in his banana coloured suit - extraordinary stuff!

:20:53. > :20:56.I think we have all been mesmerised by the spectacle of him on Strictly.

:20:57. > :20:59.And he's written his diary for the Mail on Sunday going back to when he

:21:00. > :21:06.first agreed to going on the programme choice I think, going back

:21:07. > :21:12.to the conversation we had before, it feels like this generation of

:21:13. > :21:15.quite technocratic, not extremist politicians, who were trying to do

:21:16. > :21:20.sensible things, has sort of disappeared choice people outside of

:21:21. > :21:24.the UK are trying to find these sensible people that they talked to

:21:25. > :21:27.in the past, on both parties, now they are on the reality shows, and

:21:28. > :21:35.not actually in Parliament. Given the deficit I'm not sure everyone

:21:36. > :21:42.would agree! Relative to what we now see! Thank you to all of you. It has

:21:43. > :21:48.been a really interesting conversation. And so to the weather.

:21:49. > :21:51.The bad news is that I have now used up my BBC quota of ridiculous

:21:52. > :21:57.metaphors. So let's just see what's going on in the weather! I will send

:21:58. > :22:03.you some more ad libs in the post, don't worry, Andrew! I'm ably

:22:04. > :22:11.assisted by my band, ever-growing band of Weather Watchers. Peace on

:22:12. > :22:15.the east coast, or is it one showers coming in in Hull. And you're not

:22:16. > :22:18.alone. All the way from the Scottish borders right down the Eastern side

:22:19. > :22:21.of England, showers are plenty through the course of the day and

:22:22. > :22:28.into the afternoon George any good news? Yes. Western areas, fine and

:22:29. > :22:33.sunny for the most part. Northern Ireland, you're underneath the

:22:34. > :22:38.cloud, which might produce the odd spot of rain choice join the course

:22:39. > :22:44.of the night, this nagging northerly breeze across eastern parts choice

:22:45. > :22:49.under the clear skies, away from the east, it could get really cold in

:22:50. > :22:55.the countryside. It is a bright for Monday choice but showers aplenty

:22:56. > :23:03.across these eastern areas. The strength of the wind quite

:23:04. > :23:07.noticeable, and there could be some hail in there. Temperatures, nothing

:23:08. > :23:08.to write home about. And lots of us turning the heating on for the first

:23:09. > :23:12.time. Ken Clarke is one of the big beasts

:23:13. > :23:16.of British politics. The jazz-loving, cigar smoking

:23:17. > :23:18.pro-European has just published his memoir looking back

:23:19. > :23:20.on nearly half a century in parliament, and his roles

:23:21. > :23:23.in the Cabinets of three When we met up earlier this week,

:23:24. > :23:28.I asked him first about his origins as a scholarship boy from a working

:23:29. > :23:31.class Nottinghamshire family, and his relationship

:23:32. > :23:37.with his father. Well, my dad was just a great guy,

:23:38. > :23:40.he was very popular, I'm sure he voted Labour in 1945,

:23:41. > :23:45.he was probably voting Conservative by the end of his life but he just

:23:46. > :23:48.followed my political moves. He was quite surprised

:23:49. > :23:50.and pleased that I was suddenly My Communist grandfather was one

:23:51. > :23:56.of the finest, old-fashioned type Uncle Joe Stalin had won the war,

:23:57. > :24:02.was running a workers' paradise in the Soviet Union,

:24:03. > :24:06.all the stories about him were just CIA propaganda and he tried

:24:07. > :24:11.to get me to read the Daily Worker. But Instead you were

:24:12. > :24:13.reading the Daily Mail. Instead I was reading my father's

:24:14. > :24:17.Daily Mail. It is your father's influence

:24:18. > :24:19.via the Daily Mail that might have No, I had all kinds of opinions

:24:20. > :24:28.at the time - I was a student. Really by the end of the first year

:24:29. > :24:31.of university, I had and I was pretty obviously

:24:32. > :24:36.Conservative and was joining up with all my mates

:24:37. > :24:38.who were still called... A whole generation of us got

:24:39. > :24:42.obsessed with politics. Quite a lot of us wound

:24:43. > :24:44.up in Conservative I am very interested in the way

:24:45. > :24:48.people perceive you. Because you are a pro-European,

:24:49. > :24:51.a lot of people think vaguely that Actually when you look

:24:52. > :24:55.at your record in the Thatcher government, you were

:24:56. > :24:57.pretty hard-core then. You had the really tough

:24:58. > :24:59.business of the ambulance How do you now regard

:25:00. > :25:02.Margaret Thatcher? Margaret Thatcher was the best

:25:03. > :25:05.Prime Minister I worked for, it was the best government,

:25:06. > :25:08.one of the few governments in the 20th century that altered

:25:09. > :25:10.the political culture We decided we were going to make

:25:11. > :25:17.a difference in the world and we were taken seriously

:25:18. > :25:20.and we gave ourselves Some people suffered from that

:25:21. > :25:27.but more people benefited and the combination of the Thatcher

:25:28. > :25:30.revolution and joining the European Union gave us

:25:31. > :25:33.a quality of life that we now The cabinet in those days

:25:34. > :25:37.went on for three hours. Under Tony Blair and then under

:25:38. > :25:40.David Cameron ordinary Cabinet government seems to have withered

:25:41. > :25:44.a bit and you are quite It discussed the big issues and it

:25:45. > :25:51.argued them through. The introduction of a little coterie

:25:52. > :25:57.of close friends and the entourage of public relations advisers

:25:58. > :26:01.and think-tank lads and all this kind of thing, believing

:26:02. > :26:06.that they ran the whole government and the Cabinet's

:26:07. > :26:09.job is to deliver it, Unfortunately we've now got a whole

:26:10. > :26:19.generation of politicians who are in danger of

:26:20. > :26:22.regarding this as the norm. I hope Theresa takes

:26:23. > :26:24.at least a step or two back to doing things in a more

:26:25. > :26:37.businesslike, collective fashion. Since you mentioned Theresa,

:26:38. > :26:40.I was to read you back something which you say in the book really

:26:41. > :26:42.about the British economy You say, "The recovery was fitful

:26:43. > :26:47.and based on a rising The performance of our economy

:26:48. > :26:50.internationally was feeble. We steadily acquired the biggest

:26:51. > :26:54.current account deficit in our history, which would have

:26:55. > :26:57.created a sensation 30 years before, when it was described

:26:58. > :26:59.as the balance of payments I wonder as a former Chancellor,

:27:00. > :27:07.where you think we are now and what we need to do

:27:08. > :27:10.to restore the economy now. Well, I stand by that.

:27:11. > :27:12.That does describe where we are now. We don't want to get carried away

:27:13. > :27:16.by the idea of ever onwards and upwards and the problems

:27:17. > :27:18.in 2006-2007 are all over, We do tend to live by wild

:27:19. > :27:25.excitement about one day's figures, about some slightly unreliable

:27:26. > :27:31.statistic, which at the moment is simply being interpreted

:27:32. > :27:33.by either Brexiteers or Remainers, saying, "Look, it

:27:34. > :27:36.shows we were right." Underlying it all, Philip Hammond

:27:37. > :27:39.has got a real job on his hands. You are the most famously

:27:40. > :27:42.pro-European Tory left standing. Michael Heseltine might be

:27:43. > :27:44.a competitor. Is there not some part

:27:45. > :27:51.of you that is quite pleased post- Brexit that we are in charge of more

:27:52. > :27:56.of our economic future? We are not in charge of our economic

:27:57. > :28:01.future at all until we've decided exactly how we are going to relate

:28:02. > :28:06.to the globalised economy. What exactly are our trading

:28:07. > :28:11.and economic relationships Of course, not only

:28:12. > :28:16.with the continent, You are talking me into an awful lot

:28:17. > :28:23.of gloom for a morning programme where we should

:28:24. > :28:26.be cheering people up! Although I don't take too much

:28:27. > :28:28.notice of short-term the reason the pound keeps zooming

:28:29. > :28:35.south is that nobody has the faintest idea what exactly

:28:36. > :28:37.we're going to put Of course the first thing is,

:28:38. > :28:43.are we going to keep free access to the European market,

:28:44. > :28:45.where almost half of our exports go So the idea we're in

:28:46. > :28:50.control of events... The decisions this government makes

:28:51. > :28:58.about what is our relationship with the rest of the world now,

:28:59. > :29:01.politically and economically, will make a huge difference

:29:02. > :29:05.to our children and grandchildren. You can't make great speeches saying

:29:06. > :29:10.how marvellous free trade is, as Liam Fox does, and then say,

:29:11. > :29:13.but actually we're completely Nor can you say that was decided

:29:14. > :29:19.by the referendum, because I do not think that in the entire

:29:20. > :29:21.referendum campaign, this rather esoteric subject

:29:22. > :29:29.of what exactly are our trading relationships with markets

:29:30. > :29:31.in the rest of the globe? We're talking in the aftermath

:29:32. > :29:34.of the referendum and you say in the book it is the single

:29:35. > :29:37.most disastrous decision by David Cameron, of any

:29:38. > :29:39.British Prime Minister There was a big split inside

:29:40. > :29:47.the Conservative Party, and he held To have one big, simple

:29:48. > :29:53.question determining hundreds of other questions,

:29:54. > :29:57.or raising them, about our future role in the world and reducing

:29:58. > :30:00.it all to an argument Will it cost your household

:30:01. > :30:07.money if we leave? Or - will millions of Turks be

:30:08. > :30:10.arriving here to molest our I don't think that is the way

:30:11. > :30:19.to put so much at risk. Looking back as a result of this

:30:20. > :30:22.book, you are very vehement again and again about not

:30:23. > :30:26.changing your views on Europe, not trimming towards the anti-EU

:30:27. > :30:30.part of your party. That's why you were never Tory party

:30:31. > :30:33.leader almost certainly. Do you look back and think,

:30:34. > :30:36.maybe I overdid it just a bit? Maybe it would have been

:30:37. > :30:38.better for me and for the Conservative Party

:30:39. > :30:41.and the country if I had trimmed You are making me sound rather

:30:42. > :30:49.dogmatic. I entered politics when I had

:30:50. > :30:52.made my mind up what kind One of the first campaigns

:30:53. > :30:57.I joined in was supporting Harold Macmillan's application

:30:58. > :31:00.to join the European Union and I look as though my last

:31:01. > :31:03.parliament was the one I just happen to think it was a very

:31:04. > :31:11.good thing and I am glad I have had 50 years in politics

:31:12. > :31:13.enjoying the benefits of it. You have had 50 years in politics

:31:14. > :31:16.also partly because you had one of the famously happy marriages

:31:17. > :31:19.at the top of politics. Your wife is no longer with us,

:31:20. > :31:22.but how important was she in, Politics is a trade that drives

:31:23. > :31:29.a lot of people bonkers. Gillian just kept me rooted

:31:30. > :31:32.in the real world, in real life, in so far as any politician is ever

:31:33. > :31:35.kept in touch with normality and a perfectly sophisticated

:31:36. > :31:38.form of normality. She sacrificed for everybody

:31:39. > :31:48.and her whole life was actually hugely influenced by my political

:31:49. > :31:51.career, but she made sure it didn't And alongside Gilly and jazz every

:31:52. > :32:05.single chapter in this book relates Without jazz how

:32:06. > :32:10.would life have felt? Well, again it is another thing that

:32:11. > :32:15.stops me thinking that politics is the bee all and end

:32:16. > :32:17.all of everything. Jazz is the only music that

:32:18. > :32:21.occasionally has moved me I like going to a night at the Opera

:32:22. > :32:28.once in a while, but I don't take it seriously and I baffle my friends

:32:29. > :32:31.because I do and did take seriously the days when I used to go

:32:32. > :32:34.and listen to Miles Davis, which is the origin of the title

:32:35. > :32:40.of the book. The former Director

:32:41. > :32:42.of Public Prosecutions, Keir Starmer, is back on the Labour

:32:43. > :32:44.front bench after having resigned from it earlier this year in protest

:32:45. > :32:48.at Jeremy Corbyn's leadership. Up to now, the position

:32:49. > :32:50.of the official opposition on just how Brexit should happen has

:32:51. > :32:53.been strangely vague. So there's a lot for

:32:54. > :33:17.Sir Keir to clear up. Does Labour accept that Brexit is

:33:18. > :33:23.going to happen? Have you accepted it is now a fact and will happen?

:33:24. > :33:26.The referendum was clear and has to be accepted and we cannot have a

:33:27. > :33:31.rerun of the question put to the country earlier this year, but there

:33:32. > :33:35.has to be a democratic grip of the process. At the moment what the

:33:36. > :33:41.process the Prime Minister is trying to do is to do it without any

:33:42. > :33:46.scrutiny in Parliament. The terms on which we negotiate have to be put to

:33:47. > :33:50.a boat in the house. If we cannot get the opening terms right, we will

:33:51. > :33:57.never get the right result. Before we come onto that, can I ask again,

:33:58. > :34:01.do you also accept the reason millions of people voted to leave

:34:02. > :34:05.the EU, millions of them Labour Party voters in the Midlands and the

:34:06. > :34:10.North in particular, was because they wanted to see an end to

:34:11. > :34:16.uncontrolled migration? Taking back control of migration has to happen.

:34:17. > :34:21.We have to accept there is great concern about immigration and

:34:22. > :34:24.freedom of movement. That has been evident in polls conducted in the

:34:25. > :34:30.last few years. I went round the country myself to 30 of 40 different

:34:31. > :34:36.towns and cities in the first part of this year and it is a real

:34:37. > :34:41.concern and it has to be addressed. But, we have to understand what that

:34:42. > :34:46.concern is and address it in a way that is meaningful. We should not

:34:47. > :34:49.fanned the flames of division. You and many people watching this were

:34:50. > :34:57.appalled by the sort of language with lists of foreign workers, it is

:34:58. > :35:01.clear, we cannot fan the division. Let's take the concerns seriously

:35:02. > :35:10.and address them seriously, but not found division. That is the wrong

:35:11. > :35:14.tone of these negotiations. Amber Rudd has proposals, and in fact

:35:15. > :35:20.these lists of foreign workers will not be published. We do this for

:35:21. > :35:24.non-EU workers. If Brexit is going to mean something serious and a big

:35:25. > :35:28.change in our politics, it means a change in the number of British

:35:29. > :35:33.people who are trained and brought into jobs. It must feel like

:35:34. > :35:37.something has changed. So you have to know if one copy shop is

:35:38. > :35:44.employing 80% of EU workers and another one is employing 30%. The

:35:45. > :35:48.language and tone have been quite extraordinary. This has to be a

:35:49. > :35:52.delicate negotiation and freedom of movement has to be thought through.

:35:53. > :35:56.That is clear. But to use the language and the tone that has been

:35:57. > :36:01.used is fundamentally wrong and should not be done in that way. But

:36:02. > :36:05.the proposals themselves are not fundamentally xenophobic or silly?

:36:06. > :36:12.No, they have to be carefully considered. So language is the

:36:13. > :36:16.problem. One final question on immigration because this will be

:36:17. > :36:22.important. Do you think immigration is too high, too low or just about

:36:23. > :36:25.right? There has been a huge amount of immigration in the last few years

:36:26. > :36:30.and people are understandably concerned. I think it should be

:36:31. > :36:35.reduced by making sure we have got the skills in this country to make

:36:36. > :36:39.sure people have got the jobs. As I went around the country it was clear

:36:40. > :36:43.there was a skills shortage. This is a failure of government, it is

:36:44. > :36:50.nothing to do with immigrants. That has got to be dealt with. I know

:36:51. > :36:56.immigration is a central issue, but the single market... I am glad you

:36:57. > :37:01.mentioned those words. If you accept we have to take back control of

:37:02. > :37:05.immigration, that means an end to free movement and we cannot join a

:37:06. > :37:12.tariff free single market. We have to be open to adjustments of the

:37:13. > :37:17.freedom of movement rose and we have to be shrewd and careful about that.

:37:18. > :37:21.I accept that freedom of movement was a major issue in the referendum

:37:22. > :37:28.but nobody with a voted to leave or remain voted for a government to

:37:29. > :37:32.take an axe to the economy. The Prime Minister's stance on the

:37:33. > :37:37.single market is making it impossible for us to have access to

:37:38. > :37:42.the single market. That is a huge risk to the economy, jobs and

:37:43. > :37:46.working people. There are a series of logical problems there. If you

:37:47. > :37:50.think Brexit was about taking back control of immigration and you say

:37:51. > :37:56.we must, once we take back control... I set it must be part of

:37:57. > :37:59.the negotiations and it is free movement of workers that was the

:38:00. > :38:05.principal. It is part of the negotiation. Apart from defence of

:38:06. > :38:10.the round, I cannot think of a Prime Minister in recent history who has

:38:11. > :38:13.not put the economy first. It is astonishing that the Prime Minister

:38:14. > :38:19.is not putting the economy first and that is what is causing concern

:38:20. > :38:23.about her approach. The economy, jobs and workers' rights have to be

:38:24. > :38:27.the priority and how you negotiate about freedom of movement is part of

:38:28. > :38:33.that, but not to put the economy first is astonishing. We come onto

:38:34. > :38:38.what may happen in the House of Commond where Theresa May does not

:38:39. > :38:43.have a large majority, what you are saying today is that you want, and

:38:44. > :38:47.Ed Miliband has put down a question, you want Theresa May and the

:38:48. > :38:51.government to come forward and explain their negotiating position

:38:52. > :38:57.before the Brexit talks start before Article 50 is triggered? There

:38:58. > :39:01.should be a vote on that? Absolutely, put the terms before the

:39:02. > :39:04.house and have a vote on it. If you do not have the confidence of the

:39:05. > :39:11.house on the starting terms, you are heading for disaster. She says we

:39:12. > :39:15.cannot negotiate if we are doing it in public. We cannot go to the House

:39:16. > :39:20.of Commond and say this is what we think and then go and negotiate. It

:39:21. > :39:27.may be close, but that is what has to happen for a negotiation. She is

:39:28. > :39:33.saying, leave it to us, we will not have any scrutiny or accountability,

:39:34. > :39:37.see you in a few months' time. That is unacceptable. Nobody gave the

:39:38. > :39:42.government a blank cheque. We must have a vote on the opening terms of

:39:43. > :39:47.the negotiation. Do you believe you would have a majority to frustrate

:39:48. > :39:53.the Prime Minister if she tried to do it another way? It is a question

:39:54. > :39:57.of accountability. If she cannot get the confidence of the house on the

:39:58. > :40:03.opening terms, they are probably the wrong opening terms. What she has

:40:04. > :40:08.said is there is going to be a great repeal bill to take us out of the

:40:09. > :40:12.European communities act of 1972 and take all of the measures passed back

:40:13. > :40:19.into British law is to be looked at again. Will the Labour Party support

:40:20. > :40:24.that? It is a sensible thing to make sure that rights for working people

:40:25. > :40:28.are enshrined in our law. One of the things I called for a very early was

:40:29. > :40:32.that workplace rights should be enshrined in our law now. I am not

:40:33. > :40:37.against that, it should be done sooner rather than later. But EU

:40:38. > :40:40.citizens in this country want to know what the future holds and they

:40:41. > :40:47.feel they are just a bargaining chip at the moment. Regional funding...

:40:48. > :40:52.Would you use those issues to boats down the so-called great repeal

:40:53. > :40:57.Bill? We will have to see what the detail is. It is difficult to say

:40:58. > :41:01.when we do not know the detail. I am not against the principle that

:41:02. > :41:07.rights that are there because of the EU should be invested in our law, it

:41:08. > :41:10.is the sensible way to go. In terms of immigration you say numbers

:41:11. > :41:18.should go down. How much should they go down? One of the biggest mistake

:41:19. > :41:22.since 2010 of the government is to reduce the net migration target and

:41:23. > :41:28.not to see it in any other way. That causes all sorts of perverse

:41:29. > :41:32.outcomes. Let's keep away from numbers, would you like to see it

:41:33. > :41:37.come down substantially? One of the things I was struck by what I went

:41:38. > :41:43.around the country was that company after company was saying they have

:41:44. > :41:47.to recruit from Europe. They are not training here. That is not an

:41:48. > :41:51.immigration issue, that is a skilled issue and we need to address that. I

:41:52. > :41:56.do not want to stop companies recruiting from abroad, we are

:41:57. > :41:59.driving the numbers because we have got a skills shortage we have not

:42:00. > :42:05.addressed and that is the failure of government. You left the shadow

:42:06. > :42:09.cabinet, you said you did not think Jeremy Corbyn was a plausible future

:42:10. > :42:14.Prime Minister and you are now back in again. Have you changed your mind

:42:15. > :42:20.about Jeremy Corbyn? Would he make a good Prime Minister? We had an

:42:21. > :42:24.election, Jeremy Corbyn one that and we accepted and respected. We have

:42:25. > :42:28.had three months of internal division and everybody on either

:42:29. > :42:33.side just hated that division over the last three months. We now need

:42:34. > :42:37.to pull together and work to have the most effective opposition we

:42:38. > :42:41.can. Of course, we want a Labour government and we want to support

:42:42. > :42:45.Jeremy Corbyn to that end. He has won the membership and he now needs

:42:46. > :42:52.to win the country. He knows that, we know that and we have to work

:42:53. > :42:55.together. Am I talking to Jeremy Corbyn's voice on Brexit because he

:42:56. > :43:02.says he does not want to reduce immigration? Or am I talking to that

:43:03. > :43:07.autonomous voice? But what about this shadow shadow cabinet. Some of

:43:08. > :43:10.your colleagues are caucusing or developing policies away from the

:43:11. > :43:16.shadow cabinet and that is surely very dangerous? There are unresolved

:43:17. > :43:21.issues in the Parliamentary Labour Party and we need to resolve them as

:43:22. > :43:25.soon as possible. We need to be an outward looking, confident party,

:43:26. > :43:31.rather than an inward, divided party. We need to address that. On

:43:32. > :43:36.the other hand, I respect colleagues who want to make their voice heard

:43:37. > :43:39.from different places, from the backbenches, to the select

:43:40. > :43:44.committees or on the front bench. We all need to remember that being in a

:43:45. > :43:51.stronger position is what is needed, not just for the Labour Party, but

:43:52. > :43:55.for the country. Rosie Winterton, a loyal, hard-working Chief Whip has

:43:56. > :44:00.been removed. Are you sad to see her go? I only knew her for a short

:44:01. > :44:05.time, but I respected her and I am sad to see her go. What would you

:44:06. > :44:11.say to others who say, she has gone, so I am going as well? Stepping that

:44:12. > :44:14.we need to pull together and remember the country needs an

:44:15. > :44:18.effective opposition. We have got to provide it. Thank you very much for

:44:19. > :44:22.talking to us. Alongside the new faces

:44:23. > :44:25.appointed to Theresa May's Michael Fallon, a veteran

:44:26. > :44:28.hard-hitting Tory loyalist, who kept his job as Defence

:44:29. > :44:31.Secretary. It's a very tricky time

:44:32. > :44:33.for him just now - the Russians are probing Nato air

:44:34. > :44:36.space in the Baltic, pushing ahead with the redeployment

:44:37. > :44:37.of crucial missiles, warning of looming nuclear war,

:44:38. > :44:40.and according to Boris Johnson, In brief, what is our response,

:44:41. > :44:56.beyond wringing our hands? Is it simply protesting? No. We are

:44:57. > :44:59.doing a lot in Nato, and I think we were right. You can see the

:45:00. > :45:05.deployment of missiles now close to Berlin. We were right to agree to

:45:06. > :45:10.further assurance measures to put troops into Estonia and Poland next

:45:11. > :45:15.year. And to get other countries in Nato to meet the 2% target which we

:45:16. > :45:19.are meeting ourselves. Can I ask you about your view of Mr Putin and

:45:20. > :45:24.Russia's current stance? Almost everywhere you look, the Russians

:45:25. > :45:28.are pushing up against us - they are coming into our airspace, the

:45:29. > :45:31.Americans have accused of interfering in the American

:45:32. > :45:34.presidential campaign. It feels like we have not been in a more difficult

:45:35. > :45:40.is issuing regarding the Russians since the Cold War? It's extremely

:45:41. > :45:43.concerning, we are seeing a much more aggressive Russia. We hoped

:45:44. > :45:47.Russia would become a partner to us in the west, but clearly Russia has

:45:48. > :45:52.decided to become a competitor. They said they would come in and help

:45:53. > :45:56.find Isis, and they've done that. They've been helping President Assad

:45:57. > :45:58.bomb his own people. They've been flexing their muscles in the Black

:45:59. > :46:03.Sea, we've seen pressure on the Baltic states, and they've tried to

:46:04. > :46:10.interfere in elections, and even on the Dutch referendum. So is this not

:46:11. > :46:15.a moment where we in the west have to reassess our own defence

:46:16. > :46:19.capabilities, from 2010 until very recently, our defence budget was

:46:20. > :46:23.going down very substantially, it is 8% down. When I started doing this

:46:24. > :46:28.programme, we always had more than 100,000 troops. We now have 80000

:46:29. > :46:32.and falling. Many people are saying we are simply not big enough and

:46:33. > :46:36.strong enough in defence. That's simply not right. The cuts which

:46:37. > :46:40.were imposed necessarily in 2010 when the budget was in MS have

:46:41. > :46:45.stopped now, and in fact we are increasing the numbers in the Navy

:46:46. > :46:48.and force. Last year we committed to a huge programme of investment in

:46:49. > :46:53.the Armed Forces. We are building aircraft carriers, adding more

:46:54. > :46:57.planes and adding more than the special forces. We are building our

:46:58. > :47:01.defences up again, and crucially we are meeting the 2% target. The real

:47:02. > :47:07.answer is that we should stay strong and be strong. Sir Richard Alnwick,

:47:08. > :47:11.former Chief of the General Staff, says, we are trying to be a big

:47:12. > :47:15.player, but we haven't got the resources that we used to have, by a

:47:16. > :47:19.very long way. In other words, the cuts have gone so far that you as

:47:20. > :47:23.Defence Secretary have to do even more to rebuild things? We have the

:47:24. > :47:27.fifth biggest defence budget in the world, some of the best Armed Forces

:47:28. > :47:31.in the world, and we are determined to go on playing an international

:47:32. > :47:36.role. Every ex-chief I've come across says they would rather we did

:47:37. > :47:41.more and spend more. I think it is to the credit of this government

:47:42. > :47:45.that in difficult Financial Times, defence spending is now increasing

:47:46. > :47:49.again. My budget went up in April, it is going to go on going up every

:47:50. > :47:57.year of this parliament, and we will meet the 2%. I will not quote you

:47:58. > :48:00.endless defence chief. General Sir David Richards barons, former joint

:48:01. > :48:07.task force commander, said in the Financial Times, neither of us nor a

:48:08. > :48:12.deployed force could be conducted in a Russian effort. Radars, control

:48:13. > :48:16.systems and missile stocks are deficient - is he right? We would

:48:17. > :48:20.not be defending ourselves against Russia on our own. That is the whole

:48:21. > :48:24.point of being in the Nato alliance. The general is a friend of mine and

:48:25. > :48:29.he was part of the defence review. He agreed it last year when we

:48:30. > :48:33.agreed a new approach of investment in our Armed Forces. We are one of

:48:34. > :48:38.only four countries in the world building aircraft carriers. By a

:48:39. > :48:45.guess my basic question to you, as a former Defence Secretary, -- as a

:48:46. > :48:48.Defence Secretary, in the defence of government -- are you going back to

:48:49. > :48:52.the Treasury and saying, we need to do even more? I am absolutely

:48:53. > :48:56.hoarding to the commitment that our budget will go up in real terms each

:48:57. > :49:00.year of this Parliament. And we will go on meeting the 2%. But my job is

:49:01. > :49:06.also to make sure that the money we get is spent wisely, and we invest

:49:07. > :49:14.in the right things. Aleppo, absolutely hideous scenes, attacks

:49:15. > :49:17.on children, being slaughtered, noncombatants - apart from wringing

:49:18. > :49:20.our hands and protesting at the United Nations, is there anything we

:49:21. > :49:25.can practically do to help these people? We are working at the United

:49:26. > :49:29.Nations and in fact a resolution was vetoed by Russia the other day. We

:49:30. > :49:33.are continuing to work for a political settlement in Syria. But

:49:34. > :49:37.if Russia is determined to prolong this war, and is conniving with the

:49:38. > :49:41.regime's bombing of civilians, and may indeed have been bombing

:49:42. > :49:45.civilians themselves... As Johnson suggested they were guilty of war

:49:46. > :49:48.crimes. I would endorse that, it looks as if they did target that

:49:49. > :49:54.particular convoy. And they should be hold accountable. Is there

:49:55. > :49:59.anything else we can do? There is no way of getting corridors in to get

:50:00. > :50:03.people out, to rescue some of the civilian population before they are

:50:04. > :50:07.slaughtered? Some aid is getting through, very little, not much. But

:50:08. > :50:13.we will continue to work on that. It's impossible to have safe zones

:50:14. > :50:17.if we cannot be sure that planes and convoys will not be attacked by

:50:18. > :50:27.Russia. But we will continue to work at it, and huge progress is being

:50:28. > :50:33.made against Daesh for example over in Iraq. I cannot remember an

:50:34. > :50:38.American presidential candidate so lukewarm on Nato as Donald Trump.

:50:39. > :50:42.Are you worried? I was in Washington when he made those remarks about

:50:43. > :50:47.Nato. But every American president has understood the importance of

:50:48. > :50:52.Nato. It is a defensive alliance, we help each other collectively. I'm

:50:53. > :50:57.sure that whoever is in will abide by that particular Monday. Since

:50:58. > :51:02.we're talking about him, what do you make of the recent remarks, the huge

:51:03. > :51:06.hullabaloo about him - is this a man who is fit to be American president?

:51:07. > :51:10.We have to be very careful not to comment on other people caught in

:51:11. > :51:16.elections. We have to respect democracy and work with whoever

:51:17. > :51:22.wins. Go on! I am tempting you! I am not going to if intervene in the US

:51:23. > :51:28.election. But I will emphasise that in Nato, we are all in it together.

:51:29. > :51:32.Two sovereign countries which are friendly to us, France and Germany,

:51:33. > :51:36.have talked about pulling their Armed Forces is the nucleus of a new

:51:37. > :51:41.European army. You have said that as long as we are inside the EU, we

:51:42. > :51:46.will veto that. Given that we are trying to come out of the EU, where

:51:47. > :51:50.is our moral authority to veto that? There is no support for an EU army

:51:51. > :51:54.across the European Union. When we discussed this in Bratislava couple

:51:55. > :51:59.of weeks ago, plenty of other countries were opposed to this -

:52:00. > :52:03.Poland, Sweden, the Baltic states, they do not want to merge their

:52:04. > :52:07.Armed Forces. And in fact Germany doesn't. What they are looking for

:52:08. > :52:10.is some kind of operational headquarters in Brussels, which we

:52:11. > :52:14.think would simply Judy K what Nato already does. Do you accept that

:52:15. > :52:18.effectively these days, it's none of our business any more? No. We are

:52:19. > :52:22.full members of the European Union until we leave. We have the biggest

:52:23. > :52:27.defence budget in Europe, of the largest may be, the most capable

:52:28. > :52:30.Armed Forces, and even after we left, we will still be committed to

:52:31. > :52:36.the security of what is our continent. -- the largest navy.

:52:37. > :52:39.That's why we are putting troops on to its eastern border next year to

:52:40. > :52:45.help defend against any Russian aggression. I always had you Marks

:52:46. > :52:48.down is a bit of a Brexiteer on the quiet, but you said, it would make

:52:49. > :52:53.resident putting happy if we left because it would weaken the EU. And

:52:54. > :52:57.now we have a proposal from two big countries in the EU to try to

:52:58. > :53:00.strengthen their defence capability, presumably against the Russians, and

:53:01. > :53:04.I don't understand why we are trying to frustrate them. Nato is the

:53:05. > :53:08.cornerstone of our defence and I happen to believe that the EU can

:53:09. > :53:13.impose its actions in a way that Nato couldn't. That it is Nato

:53:14. > :53:17.really that we must not undermine. And my objection to this EU

:53:18. > :53:20.headquarters proposal is, it would simply jump Kate Ward we are already

:53:21. > :53:26.doing in Nato. We have been talking about Brexit already - the overall

:53:27. > :53:29.impression from the papers is that in the Conservative Party

:53:30. > :53:32.conference, the thing that we learned is that the so-called soft

:53:33. > :53:36.Brexit, in other words, trying somehow by the back door to stay

:53:37. > :53:42.inside a single European market without tariffs, that has gone -

:53:43. > :53:46.would you accept that? No. Theresa May said that we are not doing a

:53:47. > :53:50.running commentary, but she updated the party and the country by setting

:53:51. > :53:55.a timetable for Brexit. I think the markets wanted to know that. So each

:53:56. > :53:59.option is still there? She also made clear what is going to happen with

:54:00. > :54:04.European law - that's going to be returned to our Parliament and

:54:05. > :54:07.courts, the moment we exit. She also laid out three objectives of the

:54:08. > :54:13.negotiation which is now about to start. First, that there should be

:54:14. > :54:15.full co-operation on security, counter-terrorism and law

:54:16. > :54:21.enforcement. Secondly, we should maximise free trade in goods and

:54:22. > :54:24.services with the remaining 27. And thirdly, that we should regain

:54:25. > :54:30.control over immigration. Those are the objectives of this negotiation.

:54:31. > :54:34.And the precise new host nation is now what is going to happen. So it

:54:35. > :54:38.is still conceivable that we could stay as a member of the single

:54:39. > :54:42.market? No. We have said that we want to maximise free trade in goods

:54:43. > :54:45.and services with the European countries, with whom we already do

:54:46. > :54:49.quite a considerable amount of trade at the moment. I'm still confused,

:54:50. > :54:54.the single market for us, is it dead or not? This is Brexit, full Brexit,

:54:55. > :55:00.we're going to be outside the European Union. But because it is

:55:01. > :55:05.more than 40% of our trade, we still want to maximise our trade with it.

:55:06. > :55:08.Again, looking at today's papers, you see softer Brexiteers briefing

:55:09. > :55:13.against hard Brexiteers and vice versa. This is damaging for the

:55:14. > :55:18.Cabinet, presumably. What is your message to both sides? Well, we are

:55:19. > :55:21.all Brexiteers now. We are respecting the decision of the

:55:22. > :55:24.British people and we have got to make a success of it.

:55:25. > :55:30.Now for a look at what's coming up after this programme.

:55:31. > :55:36.Is it immoral to avoid paying tax warning also, we ask, are there too

:55:37. > :55:40.many framework is in Britain? And we meet Baroness Benjamin of Beckenham.

:55:41. > :55:43.Join us at ten o'clock. Join me again at the same time next

:55:44. > :55:51.week when we have an exclusive performance by Michael C Hall

:55:52. > :55:53.from the David Bowie Andrew Neil will be

:55:54. > :55:56.here on BBC One at 11. His guests will include

:55:57. > :55:59.Iain Duncan Smith and Tim Farron. I leave you now with one

:56:00. > :56:01.of the brightest young stars From his new album Love Hate,

:56:02. > :56:05.this is One More Night. ..and builds worlds,

:56:06. > :59:00.not just characters. Join Andrew Marr as he reads

:59:01. > :59:04.into the books we love and explores why we find it

:59:05. > :59:08.impossible to put them down.