02/10/2011 The Politics Show East Midlands


02/10/2011

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In the East Midlands: Now the President of the European

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Commission has backed it, will we finally get a Robin Hood Tax?

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The city council that has actually made money out of the banking

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crisis. And how our local authorities are

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:00:54.:00:54.

Apology for the loss of subtitles for 2144 seconds

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Hello, I'm Marie Ashby, and coming up here in the East Midlands:

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We report on how local authorities are striving to create new jobs and

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the challenges they face. How one of our city councils has

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actually made money from the banking crisis, a cool �3 million,

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in fact. And two teenage politicians give us

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their verdict on Ed Miliband and the issues that directly affect

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But first, an issue we've been following closely on the Politics

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Show. The campaign for a Robin Hood Tax on the banks. Has its time

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finally come, now the President of the European Commission, has backed

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it? It is time for the financial sector to make a contribution back

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to society. With me now, two of our Members of

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the European Parliament, Glenis Willmott, who's the leader of the

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Labour Group, and UKIP's Derek Clark. Thank you both for joining

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So after all the talking, are we going to get this tax on money

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market transactions? I hope so. There is a lot of discussion to

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take place but at least we have made a start. How much could it

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raise and how much could Britain get? It could raise billions of

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pounds. This would be a tiny amount for the financial sector. People in

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this country think this should go forward. They contributed to the

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financial crisis and they should start contributing back. It would

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be a lot of money back into the coffers of the Treasury. It really

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has a head of steam now the EC has adopted the proposal? It may have,

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and it is very popular in the European Parliament. But when it

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came up in an amendment in June, it only had a small majority. The IMF

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don't have a problem with it. Spain, France, a whole other list of

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countries are supporting it? Some are not so keen, though. Do you

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believe it's likely to happen now? Because the European Union is

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moving towards what they call a post democratic society, where

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people like Barroso, who is not under strain to do his job from

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anybody in the EU, it is not the same thing as what the people want.

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They reckon this tax will raise �50 billion a year. I don't doubt it.

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But 40 billion will come from us, and that is mainly from the City of

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London, our biggest earner. Surely the British government can still

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veto it? They can still kill it off? Yes. And then it will not be a

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plan to Britain. They would certainly have to have a system for

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just the eurozone countries. But the general public wants this. They

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know the banking system did not work and they should pay back some

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of that now. They need to contribute to investment and growth

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in jobs. For more money raised from the City, the more money will have

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to invest. The British government opposes this at its peril. 65% of

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Brits polled say they want it. but this is because of the bad name

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banking has got over the last few years. First of all, the City of

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London... But is it not their chance to do something right?

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City of London next �36 billion pure profit on overseas trade.

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Secondly, they put something like �59 billion into the Exchequer

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every year. They are paying a lot of money. Whether it is enough or

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not is another matter. But people do not realise that the current

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taxes and charges on the City of London raise about �59 billion

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every year. Are you concerned a London will be particularly

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penalised by this? Of course. They will have to find �40 billion extra,

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which is totally unfair. And it will put us added disadvantage with

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other financial centres. No. This is about tax we can use ourselves

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in order to invest in the future of our children. European Commission

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President Barroso says it's the banks' chance to make a

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contribution back to society. Why should British banks and financial

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institutions have to pay the biggest price? It is on whatever

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financial transactions they make, so if we make more money here in

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Britain, they pay more. That is a good thing, surely? It is not just

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banks, it is financial institutions as a whole. And they will up sticks

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and go elsewhere. If where will they go? If the whole of Europe

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support it, where can they go? There are countries like Singapore,

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Hong Kong, Switzerland, the US. All sorts of financial institutions can

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make their transactions elsewhere. We also have the infrastructure of

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the internet and so on. There's a lot of people with these skills all

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over the world. Not everybody is afraid of this. Sweden tried it and

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said it did not work? Yes, but that was a different system. It was

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about where tax will be raised and claimed. That is not how Sweden did

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it. But we know the banks or to be making a contribution and they are

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not. And it is an insignificant sum of money. Nor 0.1% on transactions.

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It is negligible. You started talking about opportunities for

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jobs in this area. Even the EU Commission, with an impact

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assessment, have reckoned this will cost 2% of GDP. It will slow that

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down by 2% across Europe. That will hit. That will hit the small and

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medium enterprises hardest, because it always does. If he looked at the

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figures, the way it has been presented, it is actually not 0.5%

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of GDP. But we have a long way to go. There is a lot of talking to do

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and we will make sure Britain's interests are met. European Finance

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Ministers meet next week, and in November the most powerful

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countries convene for the G20. Is this the right time to be bringing

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this Paul Wood? Absolutely. George Osborne should be fighting for a

:43:12.:43:22.
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Glenis Willmott and Derek Clark, thank you.

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Now, I'm sure our local authorities would like to get their hands on

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the proceeds of a Robin Hood Tax. Amid mounting unemployment, not

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least among their own staff, we've been looking at what they're doing

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to try to create jobs. Jane Dodge reports.

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"On Yer Bike" was Norman Tebbit's message to the unemployed back in

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1981. And that's just what Liam Hudson has done, with help from

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another Conservative administration closer to home. His moped's on hire

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from Derbyshire County Council, part of its Wheels To Work scheme.

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And he found his new job as a trainee butcher while at the

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Worksop Work Club, one of three set up by Nottinghamshire County

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Council. It means everything because without having a job, I

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would not be able to support my partner and child. I would be on

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jobseeker's allowance, not being able to afford anything or pay my

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bills. Unemployment in the East Midlands is continuing to rise.

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Latest figures show the number went up by 11,000 between May and July.

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And it's young people who're finding it particularly hard to get

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a job. Unemployment amongst 18 to 24-year-olds in the East Midlands

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has gone up by 17% in the last year. Job Fairs are a regular event these

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days. Nottinghamshire County Council has organised this one in

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Worksop. Now, after six months, it is beginning to get depressing,

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seeing the news and everything. The prospect of getting a job are

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receding. Agencies and colleges are offering people voluntary work.

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Ways to find jobs and do see thes. Training to look for work but not

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actually specific jobs in there, so I was quite disappointed. A Jobs

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Fair with no employers? Teething problems, according to

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Nottinghamshire County Council. It's keen to point to the success

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of its work clubs. Another one opens in Newark next week. These

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are self-help groups for the unemployed with back-up from

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volunteers. So far, ten of those involved have found jobs. A modest

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number compared to the 4,000 redundancies the council has made

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:45:39.:45:39.

in the last two years. There have not been 4,000 people been made

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unemployed. They have gone and started up businesses themselves

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and have done very well, actually. If you get stuck in and go and try

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and create some sort of a business and get involved, you have got more

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chance of succeeding, instead of sitting back. Liam Dougan managed

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to find work at a specialist costume shop in Nottingham through

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the now defunct Future Jobs Fund. He appeared on the programme last

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year. Since then, he's been promoted. The Government scrapped

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the scheme because it said it wasn't providing permanent jobs.

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Labour-run Nottingham City Council has resurrected it, splitting the

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cost with employers. It hopes to create 240 new jobs. But that's

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still less than the number of posts cut by the council in the last year.

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We're trying to stem the tide. But better to try that, because the

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tide is coming from elsewhere. Better to do that than do nothing

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at all. The new car park at Nottingham Train Station has

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provided new jobs in construction. The redevelopment of Broadmarsh and

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Victoria shopping centres and the extension of the tram are expected

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to create another 6,000. The council wants 70% of them to go to

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local people but admit there's no contractural obligation on

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employers. We are dealing with firms who have got a track record

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of working with local people and taking them on, and we don't expect

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to be any different from what they have done in the past. In contrast,

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Derby has lost more than 3,000 jobs in the last year, half of them at

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the trainmaker Bombardier. The Conservative-run City Council is

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fighting back, one of the few local authorities currently putting big

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money into job creation. It claims its �10 million regeneration scheme

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is the biggest such investment at the moment by any council in the UK.

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We are very keen to increase what we call the degraded A

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accommodation in the City, which will increase the number of what we

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call suits on the street, which we see as a clear deficit in our

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economy. That will be a catalyst to others in the pipeline which have

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been delayed by the recession. There are now nearly 200,000 people

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looking for work in the East Midlands. With cuts to their

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budgets, local authorities are increasingly relying on the private

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sector to provide new jobs. But with the economy still far from

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stable, employers are likely to remain cautious about new

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investment. Nottinghamshire County Council have

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now told us that they expect to make 2,500 people redundant, not

:48:14.:48:24.
:48:24.:48:30.

I've been joined by two teenagers with very different political views

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on what we should be doing to help young people through the current

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crisis. Robyn Von Burg was a delegate at the Labour Conference,

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representing Bosworth, while Luc Chignell is chairman of the

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Conservative's youth division in Nottinghamshire. They're both 17.

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First, though, Robyn, the politicians and the pundits have

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all been delivering their verdict on Ed Miliband's performance this

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week. Did he cut the mustard? think Ed Miliband has certainly

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done a fantastic job for his first conference. He has inspired a lot

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of people at conference and the atmosphere since his speech has

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been very inspiring for all of us, to propel the party forward towards

:49:05.:49:14.

the next general election. Is that your view? I don't know what the

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atmosphere was because I was not there, but he just seems to lack

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something and I think that is picked upon by a few people,

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certainly from some of the reactions I heard on Twitter.

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People said they were considering Labour but because of him, he did

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not inspire them. For me, he does not seem to have a particular

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vision. He seems quite an opportunistic person who picks up

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on what Redican at the time. Robyn's convinced Ed Miliband has

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:49:53.:49:54.

what it takes to be Prime Minister. I think a lot of young people will

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be affected by the Government's cuts. Do you think he really would

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create a fairer society? I really do. I think he has created an

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alternative option for young people across the nation. I'm sure a lot

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of young people will like the sound of a Robin Hood Tax on the banks.

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Are you one of them? I don't oppose the principle behind it but I think

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it is very important it is not something people rush into. Because

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it does require the support of other major economies outside of

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the EU. Places in Asia. Hong Kong was particularly a bigger economy,

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as is the US. It does need international support because we

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are talking about such big figures here. We do need to make sure it's

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in place and not something that is rushed into. I have to say, I do

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agree. The idea is a fantastic opportunity for a lot of people in

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a lot of countries to have that support, especially in social

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welfare as well as things like hospitals and schools. So why do

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think it is a good idea and it would be good for people to have

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those opportunities. -- so I do think. You've just seen Jane's film

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on councils' efforts to create jobs. What more do you think the

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coalition should be doing to stimulate employment? I think the

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scrapping of the youth unemployment scheme has affected a lot of young

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people in trying to find jobs. The introduction of tuition fees and

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the rise in them has been a slight problem, due to the fact that you

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only start paying back the money you owe when you have got a job of

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�21,000 or over, but the problem is, trying to find that job. So a lot

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of people, especially in my area, are finding it hard to get a job.

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There's been a 17% increase in the number of young people who are

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unemployed in the East Midlands in the past year. Do you believe the

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Government really has the interests of your generation at heart?

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think dealing with the first thing in terms of scrapping, it was not a

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total removal of it. It was a codification of all the different

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organisations and agencies out there, bringing them into the work

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programme, which has been one of the major things that is being

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pushed forward. So whilst maybe the specific programme was scrapped,

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they have put the resources back into the work programme, which is

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supporting people who are unemployed. Don't know if you want

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to wait for tuition fees later it or talk about that now? No, talk

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about it now. Certainly, the way you mentioned it, being over

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�21,000 before you pay it back, that is quite a common sense, fair

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thing to do, because people go to university, or most do, hoping to

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get a steady job the other side which will mean they are able to

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pay back what they have got, and if, for whatever reason, that does not

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work out, there is a safety net, which means if you are not earning

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more than 21,000 you are not forced into paying it back with all that

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pressure. That is what was lacking in the previous system. And it is a

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huge concern for people like yourselves, who are desperate to go

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to university. You are obviously very interested in politics. Are

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there many others out there like you? Actually, my three best

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friends support the Conservatives. But I think we do have quite

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healthy political discussions but it is just more me on my own.

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politics is not a dirty word? more looking at current affairs and

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the news, perhaps, as the thing that young people are interested in.

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As far as politics goes, we have got thousands of members in the

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Conservative future and people that have said we are not just

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interested in current affairs but in politics. I think politics is

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more of a vehicle to bring forward your ideas. Thank you both of you

:53:59.:54:09.
:54:09.:54:10.

for your ideas today. The Robin Hood Tax has featured

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prominently in this week's show. But would you believe,

:54:14.:54:17.

Leicestershire County Council has actually made money out of the

:54:17.:54:20.

banking crisis! It all springs from the time when the banks needed

:54:20.:54:23.

bailing out. And the council seized an opportunity. Our political

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editor, John Hess, joins me now. How've they done it, John? Well, we

:54:28.:54:36.

could all do with some extra cash, couldn't we! They lent �5 million

:54:36.:54:40.

each to the Royal Bank of Scotland and Barclays Bank at the height of

:54:40.:54:44.

the banking crisis. In turn, because of interest, they managed

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to and getting on for �3 million that Leicestershire says has gone

:54:48.:54:52.

to cushion some of the central government spending cuts. You

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contrast that with the Nottingham City Council. It put millions of

:54:57.:55:02.

pounds into three Icelandic banks. They thought they were onto a

:55:02.:55:05.

winner until the bank collapse in 2008. Have they taken any political

:55:05.:55:09.

flak for lending that money to RBS and Barclays, bearing in mind the

:55:09.:55:13.

banking crisis was at its height then? The thing to remember is that

:55:13.:55:18.

a number of our big local authorities do use their cash

:55:18.:55:22.

reserves to loan to banks. And they use that interest to provide local

:55:22.:55:28.

services. Certainly, that tax payers allowance say that councils

:55:28.:55:35.

must be wary of potentially risky investments. -- the tax payers

:55:35.:55:40.

allowance. They say their investments were shrewd, unlike

:55:40.:55:49.

many local authorities, as they did not touch the Icelandic banks.

:55:49.:55:56.

how much are they in deficit on that investment now? They owe �46

:55:56.:55:59.

million and a thought that was a shrewd investment until they went

:55:59.:56:06.

belly-up. The leadership played down the impact that this bank

:56:06.:56:10.

collapse would have on budgets and local services, but so far, the

:56:10.:56:16.

city has only received just under �10 million back. Still a long way

:56:16.:56:22.

to go and one to keep an eye on? Definitely, and it still has not

:56:22.:56:26.

been quite result because it is all locked up in legal proceedings in

:56:26.:56:29.

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