26/01/2012 This Week


26/01/2012

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Tonight, with the Oscar nominations announced this week, takes you to

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A silent film The Artist piles up the nominations, presidential

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matinee idol Barack Obama puts tax and fairness at the heart of his

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re-election campaign. We can restore an economy where everyone

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gets a fair shot and everyone does their fair share and everyone plays

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Back at home, Bishop performing in the House of Lords turn up the

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volume to fight for fairness over welfare reforms. Czar of the small

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screen, writer and ideas man, Alain de Botton says we should all feel a

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bit more charitable about paying our taxes. The horrible process of

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paying tax could be given some of the heart-warming quality of giving

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money to charity. And what if the taxman learned to say a little

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please and thank you? There's not much to sing and dance

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about as the IMF publishes yet another gloomy growth review. So,

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with the celebs of the economic and political world gathering on the

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slopes of Davos, chief critic Mehdi Hasan gets his skis on. With the

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world chi slip sliding back into recession, do any of our political

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leaders have what it takes to bring us back from the brink? Tn Oscar

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nominations for The Artist, but who could have guessed a French silent

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film would be such a success? Can you really pick winners within it

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comes to the creative industries? Singer and actress Charlotte

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Gainsbourg talks art v commerce. don't believe you have to make

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Evening all. Welcome to This Week, a week when Gingrich beginning

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became the front runner in the primary race by attacking the made

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ya. It's an easy route to popularity which is why it's

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beneath the dignity of our MPs, though best not mention it to Ed

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Miliband, just in case. So sooner had Mr Gingrich taken the

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lead that he promptly promised to two to Mars. Transpired he meant a

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Gingrich presidency would set that as the target for a new US space

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programme. And he wouldn't actually go there himself. Mitt Romney was

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crest fallen, Barack Obama wore a huge grin. Back on terrafirma, it

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wasn't a good weak our over overworked and underpaid workers in

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Parliament. Our elected representatives were much more

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exorcised by complaints that a tax subsidised starter of beetroot and

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pumpkin salad consisted of only one piece of beetroot in a puddle of

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pumpkin puree and was tasteless. Worse than that, a boiled egg had

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been cut into quarters but only three served up on a plate. Petty

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and insulting way to save a buck, said one MP. Another said, a bucket

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of chips makes for soggy chips! The tower arrangement, he said, is

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better. The inhumanity of it all. Suffer

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the Parliamentary children with their soggy bucket of chips.

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Speaking of those who deserve no sympathy whatsoever, I'm joined on

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the sofa by two of Westminster's most pathetic wretches, the Oliver

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Twist and Artful Dodger of late flight political chat, Michael

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Portillo and Alan AJ Johnson. Welcome to your both. Michael, your

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moment of the week? Well, in a week in which the Bishop's led the

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assault on the welfare reforms of the Government in the House of

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Lords, it was interesting to read an article by Lord Carey, a former

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Archbishop of Canterbury, and he was writing I think in the Mail on

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Sunday. He talked about the immorality of the high level of

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borrowing. The Daily Mail actually. It's true that we are living life

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on the hog today at the expense of generations that will come

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afterwards because we are spending more than we produce in income so

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we are borrowing. That borrowing will have to be paid for by future

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general races. You referred to the trillion of national debt. Heading

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for 1.5 trillion? Not many Bishops focus on the immorality of saddling

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a future generation with the burden of living to the extremes that we

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do at the moment. I think that is a moral question and I'm pleased that

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Lord Carey mentioned it. Interesting? Mine's a light hearted

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moment. Andrew Stunell, a Local Government junior minister told the

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Commons they must vote against an opposition amendment. A vote was

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called. There is two lobbies you have to go through, the aye and the

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no lobby. Stunell was telling them to walk through the no lobby. He

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then decided to nip into the aye lobby to get a glass of water, but

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there's water in the no lobby as well. He went in there, got locked

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in and the only way to get out was to vote, so he hid and came out

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after the vote had finished. I think there's a new verb now to

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walk into the wrong lobby will be Stunell-ing!

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Love it. Now, it's presidential election

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year in America, and President Obama was accused of class warfare

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this week when he used his last State of the Union address of this

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term to call on the rich to pay a bigger share of their income in tax.

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With potential republican opponent and multi-millionaire Mitt Romney

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forced to explain why he pays a lower tax rate than many middle

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class Americans, Mr Obama obviously thinks there are votes in it. Nick

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Clegg today called on his own coalition Government to do more to

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reduce tax for low earners and the squeezed middle, claiming the

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public had reached "boiling point" on the issue. So we turned to

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writer, thinker and dreamer, Alain The prospect of paying tax is

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pretty awful at any time. It's a bit like having a tooth pulled. But

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in these dire economic times, it's perhaps even worse. We tend to feel

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that life is already quite unfair and we don't want to have to add

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another tax burden to our situation. I think that's why the Bishops

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annoyed so many people when they argued that actually we had to keep

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paying for the most unfortunate in society. What are these people

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doing making this kind of argument in the Members of Parliament as

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well? Haven't they got pulpits for this sort of thing?

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I fully agree that the Bishops should stay well out of Parliament

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but I think here, as in so many other areas, the secular world

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could pick out some useful lessons from the religious one. When it

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comes to tax, what politicians might learn is that the word "tax"

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is a particularly colourless, odourless offensive word. What

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religions do is rebrand tax as charity. Now, charity is a much

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more appealing word and in Christianity, it's absolutely

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fundamental to being a spiritual person. The idea is that Jesus

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sacrificed himself for you but God gave up something very precious for

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you and you in turn should practice giving up things like money that

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are important to us in order to help others.

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On the surface, this is a completely cray zis argument, but

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it's also one that we can use, paying taxs is one of the most

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generous things any of us ever gets to do, it's giving a huge share of

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our income for other people, yet it feels so horrible. The challenge

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for politicians is, how can we give to the act of paying taxes some of

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the charm, spiritual depth and warm glow that naturally comes when you

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give to charity? Paying taxes is a horrible process.

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So I think this is what politicians should do. They should make us feel

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that the enormous amount of money we are contributing in taxs is

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actually going towards something that's pleasant, valuable and

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important. They should reconnect us emotionally to the fruits of our

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charity. They should show us that schools, the hip replacements, the

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hospitals, the nurseries that our money has gone to fund.

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They should stop making paying taxes feel like such a punishment.

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And, as our parents always told us, please and thank yous are very

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important and, after you've just given something really valuable,

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it's always nice to get a thank you. So isn't that something that the

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taxman could do for us, a little thank you slip after we've filed

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our return. Alain de Botton in his North London

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study. Welcome to This Week. Thank you very much. If you were on a

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tight income struggling to make ends meet in these tough economic

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conditions but you are paying your whack of tax, do you think a little

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thank you note from the taxman's going to make you feel any better?

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It's not going to solve everything but I think it helps. Charity is

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something that people at all levels of society enjoy, giving to

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somebody else is a fundamental sign of your freedom. That is a sign

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that you are a free person. I don't have freedom not to pay tax, I make

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charitable contributions, that's a freedom to make them or not to make

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them, there's no choice when it comes to paying tax? Nevertheless,

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I think that the act of giving tax should be in some ways acknowledged

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as something that you are doing for other people, that it's not merely

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a dry, bureaucratic procedure, it's an act of generosity, however

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forced. Alan, up for rebranding tax as charity? When there was the

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fracas over the 10p tax rate which Gordon, as Chancellor in the Blair

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Government introduced, he was surprised at the backlash because,

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at the same time he bought the basic rate of tax down to 20p, so

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what the public should have focused their mind on was, we have got the

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lowest basic rate tax ever. Instead of that, the public, which kind of

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I think suggests that the public do understand about the fairness

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argument, the public didn't say thuck for a 20p tax rate, the

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public actually were very concerned about the very poorest losing the

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10p tax rate -- didn't say thank you for the 20p tax rate. We

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misrepresent the public I think when we think they they don't

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understand this money going towards schools and hospitals. I don't

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think you need to rebrand it. It's an interesting idea, but... In the

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process of paying your tax, the forms you sent, the language that

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the revenue uses, there's absolutely no acknowledgement that

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this is a human process whereby one part of the population gives up

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their income for the sake of another. There's absolutely nothing.

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It could be just a few sentences, something to suggest that what you

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are doing is not merely an about tract bureaucratic procedure, but

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it's part of living in a society. Would that make tax for acceptable?

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We now never think about what tax does and it does lots of good

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things of which we'd be very happy about. It's about proportions, we

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also think part of what we give in tax is wasted. We can see lots of

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Boro cats living high on the hog or money being wasted in hospitals or

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Public Services. Or IT schemes? We know that the Government thinks

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that public spending is too high and it wants to bring its down. Ten

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years ago, under Gordon Brown, it was 38% of our national wealth, now

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it's 48%. So proportions come into it as well. Alain is right, that in

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our hatred of taxation, we have perhaps forgotten that we are doing

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good things with our money and it might be nice to be reminded of

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that. But didn't Labour go through a huge tax and spend period after

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about 2000 Stuck to Tory plans to begin with, then you really got

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going and the economy was growing fast. But a lot of people just

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thought that a lot of the money that was spent was wasted, that you

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had taken their hard-earned money and put it into building new

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schools and imbrofing hospitals and cutting waiting lists -- improving.

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Because there was a lot of it, a lot was wasted. The IT scheme was a

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huge problem. Most of what we did was because we were able, because

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the unemployment came down and the unemployment rate went up to the

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highest ever known, 75%. We weren't spending that money on ufpb

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employment benefits and you could spend it on schools and hospitals -

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- unemployment. It was a period when we were fortunate to be there

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at that time, but actually, that was a lot to do with the policies...

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The proportion of national wealth spent by the Government went up by

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10%. That is... Not in the period that Andrew is talking about. It

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was at 38% ten years ago. Yes, A lot of rich folk would rather

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give up in charity like Bill Gates, so they can choose how to spend the

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money. There is an embarrassment in Government and society about tax

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because there is a feeling it is being wasted. First, there is

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accountability, what tax is spent on. I would rather see a pie chart

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where it says hospitals, defence and wasted money for paperclips and

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bad lunch. At least I know where it is going. At the moment there is an

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embarrassment, shameless secrecy. So let's open it up and have a

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thank you slip along with the words like, sorry that we have wasted 32%

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of your tax income, we are struggling to bring you down.

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pie chart does not show that. If you say 35% has gone on health, you

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do not know how much was drugs that were thrown away at the end of the

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week because they over ordered. local council, when I get my local

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council tax bill, it sends me a pie chart. Do you like it? I do look at

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it. It does not make me feel better about paying the tax. The central

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point is that with the bishops we were not talking about a great deal

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of money. Welfare reform was 200 and some two 5 million of a budget,

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the biggest budget that I ever had of �192 billion. As Iain Duncan

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Smith says, this is not about saving money. His argument was that

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it is a fairness argument. If you are very rich, as I am told you are,

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very rich... All writers are rich. You would not notice paying a bit

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more tax. But if you are run a little above average income at the

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moment when your fuel bill has gone through the roof and food prices

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have risen as well, and the tax band that you are in, you have

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suddenly slipped into the next one, any more tax and you are really

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struggling. Absolutely. And your pay is not keeping pace with

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inflation. All that I am saying is that there should be more of an

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acknowledgement on the part of governments that demand tax that

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they are asking for people to do something for others, and that that

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has to be remembered as part of the mix. It may go wrong and the money

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may be wasted but that is fundamentally what the aspiration

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of tax is, and we often forget it. It is worth bearing in mind.

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Something remarkable is already beginning to happen in America,

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America is going to have an election based on class. It has

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never happened in recent times. Because Mr Obama, rightly or

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wrongly, does think there are votes in getting the rich, or at least

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the well-off, to pay more tax. think you could also say it is an

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election about the size of government. They are having the

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debate we ought to be having in Europe, how big a government can we

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afford, what is the role of government when the going gets

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tough? Obama's point is, why should a secretary pay more tax than the

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millionaire she is secretary to. But the money mitt Romney is

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getting on 15% has already paid 35% corporation tax. It is bound to be

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a political issue. You will not get away with that in a presidential

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debate. Mr Clegg claimed -- claims we have reached boiling point on

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tax, and that is why he wants more tax cuts. Do you buy that? I do not

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buy it in the sense that he means it. Because he is talking about

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reducing taxes on the lowest paid an increasing them on the highest

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paid. And I am not sure I do agree with him. Not just the lowest paid.

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If you take people out of the threshold, people in the middle

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benefit, too. But it does nothing for the 3 million households who do

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not pay any tax. Do you think you will ever convince anybody with

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this line? It is one part of what you have to do as a Government,

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make tax accountable, reduce tax as much as possible, use it

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efficiently, and as part of that makes you have to reconnect the

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electorate to why they are paying tax. You are asking them for

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something and it is a democracy so you need civic involvement in the

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act of paying tax. It cannot simply be an authoritarian demand for

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money, which it too often is. it may be late and we may be

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shedding viewers faster than you can say Newsnight Special from

:19:18.:19:21.

Davos, but we refuse to compromise our artistic vision here on This

:19:21.:19:24.

Week. So coming up, actress, singer, scion of French bohemia Charlotte

:19:24.:19:27.

Gainsbourg, who'll be talking about the tension between art and

:19:27.:19:31.

commerce. And for those without an ounce of poetry in your bones,

:19:31.:19:35.

remember you can post your prose on our interweb site, tweet us on your

:19:35.:19:40.

Twitter thingumabob, or follow us on The Facebook.

:19:40.:19:44.

Now, the PM and the Chancellor have been unusually chipper this week,

:19:44.:19:47.

despite the grim state of the economy. Who cares about jobs or

:19:47.:19:52.

prices when there's the prospect of a fresh dump in the Swiss Alps? And

:19:52.:19:55.

I'm not talking about Val D'Isere. Oh, no. Call-me-Dave and Gidders

:19:55.:19:58.

have been excitedly packing their salopettes and skis for this

:19:58.:20:02.

weekend's international snooze-fest in Davos. So we asked The New

:20:02.:20:05.

Statesman's in-house ski champion, Mehdi Hasan, to join them on the

:20:05.:20:15.
:20:15.:20:31.

black run for his round up of the Here we are in Davos, with the

:20:31.:20:34.

great and the good of the financial world. I would be -- I thought I

:20:34.:20:43.

would take an hour off to squeeze in some skiing, as you do. It maybe

:20:43.:20:46.

blue skies in Davos, but there has been an avalanche of bad economic

:20:46.:20:52.

news this week. Our GDP fell by 0.2% at the end of last year. The

:20:52.:20:58.

IMF has revised down its UK growth forecast for 2012. And for the

:20:58.:21:03.

first time ever, our national debt topped one trillion pounds. Can it

:21:03.:21:09.

get any worse? Hold on, George, wait for me. Britain has

:21:09.:21:13.

substantial economic problems and debts built up over the last 10

:21:13.:21:16.

years. We are dealing with those, but dealing with those problems is

:21:16.:21:22.

made more difficult by the situation in the eurozone. It suits

:21:22.:21:25.

George Osborne to blame our economic problems on the eurozone.

:21:25.:21:29.

Last year, he was blaming the snow and the royal wedding. Next, it

:21:30.:21:35.

will be the dog that eight out GDP. So surely a blizzard of easier tax

:21:35.:21:40.

lines for the Labour Party. Go on, go get him. Growth has been flat

:21:40.:21:45.

lining in our economies since well before the eurozone crisis. In fact,

:21:45.:21:51.

since his Spending Review in autumn 2010. And what has characterised

:21:51.:21:55.

the Government's approach throughout this period? Total

:21:55.:22:01.

arrogance. Well done, head, that's more like it. If only the previous

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week the Labour Party had not announced it planned to keep these

:22:04.:22:09.

cuts. Talk about mixed messages. The Government's Welfare Reform

:22:09.:22:12.

Bill snow ploughed his way through the House of Lords with the bishops

:22:12.:22:16.

launching an attack on the Government's �26,000 benefit cut.

:22:16.:22:21.

It left David Cameron able to present himself as the champion of

:22:21.:22:25.

working families, as he did on a visit to as staff. Are you happy

:22:25.:22:29.

that your taxes are going towards families where no one is working

:22:29.:22:36.

and they are earning over �26,000 in benefits? Is that fair? No.

:22:36.:22:40.

again, the Labour Party is all over the place. Its message of

:22:40.:22:42.

supporting the cap in principle but opposing it in practice has meant

:22:42.:22:47.

that it has lacked attack climbs on the coalition. Here, for example,

:22:47.:22:51.

is a case study in how not to do opposition. If you get your

:22:51.:22:55.

amendment, you will tell you Lords to vote against the other amendment,

:22:55.:23:00.

the child benefit one? I am not able to say what will happen in the

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debate later. It would help if you had a policy. We would know what is

:23:04.:23:14.

going to happen. All right, you have got me, I am a jobbing hack. I

:23:14.:23:24.

am not in Davos, I am in Hemel Hempstead, and I cannot ski.

:23:24.:23:28.

Opposition can be an uphill struggle, which is why it is often

:23:28.:23:31.

left to outside parties to pick up the baton. This week, the Health

:23:31.:23:35.

Select Committee joined doctors, nurses and midwives to denounce the

:23:35.:23:39.

Government's health reforms. David Cameron had a ready-made answer.

:23:39.:23:47.

think they will want to hear from this GP who hails from Doncaster.

:23:47.:23:50.

He said this when he was the acting chairman of the Doncaster GP

:23:50.:23:55.

commissioning group. He said, becoming one of the first national

:23:55.:24:01.

pathfinder areas is a real boost for Doncaster. A single doctor in

:24:01.:24:04.

Ed Miliband's constituency of Doncaster. That's all right then.

:24:04.:24:10.

Forget that 90% of GPs want the bill dropped. Talking of drops, I

:24:10.:24:20.
:24:20.:24:22.

Even with the health service on its back, it still will not be enough

:24:22.:24:27.

to save Ed Miliband on its own. He has to up his game. He has to look

:24:27.:24:30.

-- perhaps he can look across the pond and look at the only centre-

:24:30.:24:38.

left leader in the Western world who seems about to win an election.

:24:38.:24:48.
:24:48.:24:51.

Barack Obama serenading Al Green is one thing. I am not saying Ed

:24:51.:24:54.

Miliband should start singing but he could borrow some of the

:24:54.:24:58.

President's other lyrics. Right now, because of loopholes and shelters

:24:58.:25:02.

in the tax code, a quarter of all millionaires pay lower tax rates

:25:02.:25:06.

than millions of middle class households. Do we want to keep

:25:06.:25:10.

these tax cuts for the wealthiest Americans? That is what I am

:25:10.:25:14.

talking about, but it has taken Barack Obama three years to get his

:25:14.:25:20.

act together. I am not sure Ed Miliband has that kind of time.

:25:20.:25:29.

If you believe that Davos is going to save the euro, let alone the

:25:30.:25:35.

world. -- few believe. What next? The civil war is good for the

:25:35.:25:41.

economy, but with who? All options remain on the table, but I stress

:25:41.:25:44.

that the importance of this policy and the reason we are pursuing it

:25:44.:25:48.

is because we do not want to see a nuclear weapons armed Iran and

:25:48.:25:53.

nuclear proliferation in the Middle East, but we also do not want to

:25:53.:25:57.

see Michal -- military conflict in that region. The problem with

:25:57.:26:00.

attacking Iran, apart from the bloodshed and the Boback, is that

:26:00.:26:04.

oil prices could hit a record high, plunging the world economy into a

:26:04.:26:08.

new Great Depression. -- the blow back. But it could give George

:26:08.:26:17.

Osborne a new excuse next time the growth figures go downhill.

:26:17.:26:22.

Mehdi Hasan at the snow centre in Hemel Hempstead. You can tear up

:26:22.:26:24.

the letters that you were writing to complain that we had paid for

:26:24.:26:32.

him to go to Davos! Michael, the NHS reforms. It seems to be a

:26:33.:26:37.

loser-lose situation for the Government. Why do they persist?

:26:37.:26:41.

suppose because they think they are the right thing to do. They think

:26:41.:26:45.

the National Health Service has repeatedly underperformed. They

:26:45.:26:50.

want to see it perform better. They want to see the Decisions passed

:26:50.:26:53.

down to doctors. They want better management of budgets. They think

:26:53.:26:58.

it is worth it. If you are making a major reform on welfare, the

:26:58.:27:02.

biggest since the welfare state came in, major reforms on the

:27:02.:27:06.

education front, struggling with a deficit that is not going away

:27:06.:27:11.

easily and tough economic times, do you also want to be doing the

:27:11.:27:15.

biggest reform of the health service since it came in? This is a

:27:15.:27:21.

very interesting point. He said with a wry smile. I absolutely did

:27:21.:27:26.

not predict this. Half the Tory party did not. When I was writing

:27:26.:27:30.

about what the Tory party might do two years ago, said they would

:27:30.:27:34.

tackle the deficit, tackles secondary education but leave

:27:34.:27:37.

health a side because it is too controversial. To my surprise, they

:27:37.:27:41.

have tackled it as well. I suppose they feel that there are so many

:27:41.:27:46.

things they want to... They are going to be quite unpopular, so

:27:46.:27:55.

they might as well prepared -- Health is a good issue for Labour

:27:55.:28:01.

and a tough one for the Government. It is the other way on welfare.

:28:01.:28:06.

Labour is struggling to get the clear message on welfare reform.

:28:06.:28:11.

don't think so. A lot of what Iain Duncan Smith is doing our the

:28:11.:28:18.

reforms that we would introduce as well. On this issue, I think there

:28:18.:28:23.

is a very strong feeling that �26,000, the average wage of

:28:23.:28:27.

�35,000, should be the most that someone on benefits can earn. The

:28:27.:28:31.

problem is in the detail. Iain Duncan Smith says there will be a

:28:31.:28:35.

transition period. The peers were pointing out, Labour peers as well,

:28:35.:28:40.

it is that if you are not careful in the Government's own impact

:28:40.:28:42.

assessment you will find lots of people presenting themselves as

:28:42.:28:46.

homeless as a result. Local authorities have to pay tax payers

:28:47.:28:50.

money and it ends up being more expensive. The Government could not

:28:50.:28:54.

give assurances about what those transition arrangements could be.

:28:54.:28:58.

On the other issue, child benefit, they were pointing out that someone

:28:58.:29:01.

on 80,000 a year would have child benefit but someone on 26,000 a

:29:01.:29:07.

year would not. You would get 26,000 a year if you had no kids

:29:07.:29:11.

and 26,000 a year if you had four kids. And so the effect on child

:29:11.:29:16.

poverty. Important points to debate. But what you have said on the cap

:29:16.:29:20.

is a perfectly realistic position. It is not what I have been able to

:29:20.:29:23.

get any official Labour spokesperson to say. You say that

:29:23.:29:28.

you accept the cap and think 26,000 is about right for the cap, but you

:29:28.:29:32.

are going to be very careful to make sure the transition

:29:32.:29:39.

arrangements are right. Yes. Your party has not said that. That is

:29:39.:29:45.

the position of Liam Byrne. I have interviewed people this week and

:29:45.:29:55.
:29:55.:30:01.

I didn't see your interviews, but we were reforming welfare, it's a

:30:01.:30:06.

long hard slog, but we were doing it. Well, the fact is though that

:30:06.:30:09.

Labour could have gone much further, they didn't, and this Government

:30:09.:30:13.

is? Yes, I mean Alan said a moment ago you have got to be careful not

:30:13.:30:18.

to do this, that and the other. One thing you have got to be kaifl of

:30:18.:30:25.

is that people will propose all sorts of transitional arrangements,

:30:25.:30:30.

you have to make sure you don't lose all the reform. One Government

:30:30.:30:33.

after another has tried to control the size of the welfare budget, has

:30:33.:30:36.

tried to control for instance the numbers of people claiming benefits

:30:37.:30:40.

that are intended for disabled people. One Government after

:30:40.:30:43.

another's made no impact in the welfare budget. Do you think we

:30:43.:30:47.

will see, because we have got the universal credit coming down in

:30:47.:30:52.

2013, these changes on the cap coming in in 2013 as well, there's

:30:52.:30:55.

also other changes involving various disability allowances and

:30:55.:31:02.

so on. Will we see, by 2015, will a very different welfare system have

:31:02.:31:06.

started to take route? I think this is the most comprehensive effort by

:31:06.:31:11.

a Government that I can recall but I expect the results to be

:31:11.:31:17.

disappointing. I don't think so. Look, the numbers of people on

:31:17.:31:22.

Incapacity Benefit went up from 700,000 up to 2.6 million from the

:31:22.:31:27.

70s to the 90s. To get that down, not just stopping the flow but also

:31:27.:31:31.

looking at the stock in those terms, many of whom wanted to go back to

:31:31.:31:36.

work, they need ed help and counselling. That's a long, hard

:31:36.:31:40.

process, we started it. We stopped the flow, it would have been four

:31:40.:31:45.

million if that ratio carried on much longer. We stopped the flow

:31:45.:31:49.

and then you need to get to work with the many individual families.

:31:49.:31:54.

65,000 are affected by this �26,000 budget. Iain Duncan Smith says, and

:31:54.:31:57.

I think it's right, that if you concentrate on each one on their

:31:57.:32:00.

circumstances, you can use the year leading up to this taking effect to

:32:01.:32:06.

actually find what the problem is, you can work with Louise Casey and

:32:06.:32:09.

her family intervention project to try to solve the problems. What you

:32:09.:32:16.

don't do in doing all this is to hit familys that are in real

:32:16.:32:20.

difficultty, the guy who's 59, four kids, worked all his life, had a

:32:20.:32:23.

stroke, can't work, a quarter of these people affected by the cap

:32:23.:32:31.

cannot work by the Government's definition. The public want the

:32:32.:32:35.

shameless sorting out, the Shameless TV series, they want

:32:35.:32:39.

those people sorting out, they don't want to hit people genuinely

:32:39.:32:43.

in need of the benefits and that's the difficulty of how you have to

:32:43.:32:47.

get this right. There have been huge changes over the years and I

:32:47.:32:51.

think Iain Duncan Smith has carried on many of those and has to be

:32:51.:32:54.

careful he doesn't defeat his own objective. The economy, more bad

:32:54.:32:58.

news, the fourth quarter of last year. The economy declined, the

:32:58.:33:02.

eurozone crisis back in the head luens again this week. The Greek

:33:02.:33:07.

situation still unresolved -- headlines. The IMF Chief Economist

:33:08.:33:14.

downgrading Britain's growth rate for this year. It was said that the

:33:14.:33:18.

UK should consider slowing the speed of the cuts to avoid

:33:18.:33:22.

strangling the recovery? What did you make of that? Well, it's

:33:22.:33:25.

perfectly plausible an argument but I don't think it's the argument

:33:25.:33:29.

that the markets accept. I mean, the pace of the austerity programme

:33:29.:33:34.

which was agreed by the coalition in the 72 hours following the last

:33:34.:33:38.

general election is dictated by their view of what the markets will

:33:38.:33:43.

put up with. They believe that only the acceleration of the austerity

:33:43.:33:47.

package by comparison with what Gordon Brown was pursuing has

:33:47.:33:50.

entkwrabled us to continue to finance our debt at very low rates

:33:50.:33:55.

of interest -- enabled us, and to be able to print money without

:33:55.:33:58.

affecting that. I think we are all on tenterhooks as to whether the

:33:59.:34:02.

markets might one day turn against Britain and say no, you are not

:34:02.:34:07.

going to pay 2%, but 5 or 6%. The difference for us between able to

:34:07.:34:12.

finance 2% or 5 and 6% is huge, it's the difference between a

:34:12.:34:16.

controllable situation and a calamity. It's all very well

:34:17.:34:20.

someone from the IMF saying you ought to change your austerity

:34:20.:34:25.

programme, I don't think any politician will take that risk in

:34:25.:34:29.

the markets. I was interviewed Liam Byrne, your friend, and it seems to

:34:29.:34:33.

be an endorsement of Labour's position in a way, but within a few

:34:33.:34:37.

hours, Christine Lagarde said the opposite. You can't win? Christine

:34:37.:34:40.

Lagarde's looking for the UK Government to pony up a lot of

:34:40.:34:45.

money to the IMF. She is indeed. North-east not about to upset them.

:34:45.:34:47.

Michael and I represent a real difference in this. I was in

:34:47.:34:52.

Government at the time of the 2010 election when things were going

:34:52.:34:59.

pear-shaped, when it looked like we wouldn't get what the outcome was a

:34:59.:35:02.

hung Parliament. The markets weren't panicking, they weren't

:35:02.:35:07.

panicking about what was a G20 policy. They put us on negative

:35:07.:35:13.

credit watch and we were paying yield similar to Italy? Look, at

:35:13.:35:16.

the time, halfing the deficit within four years was a plan that

:35:17.:35:21.

didn't send the markets into panic. You look at the non-where are EU

:35:22.:35:25.

countries, you'll see that their growth, all of it, was better than

:35:25.:35:29.

the UK this year and all bar Hungary is going to be next year.

:35:29.:35:33.

If you look at countries that control their own economies, the US,

:35:33.:35:39.

Switzerland, the non-EU countries. Sweden? Yes. You look at those

:35:39.:35:43.

countries, you will see that their yields are lower than the UK's.

:35:43.:35:48.

going to have to stop you there. I'm check my gild yields now. Nick

:35:49.:35:53.

Clegg appointed as Deputy Prime Minister, Ed Miliband in charge of

:35:53.:35:56.

the Labour Party, Diane Abbott leading the fight against fried

:35:56.:36:00.

chicken. Yes, it's a funny old world, isn't it. A hat trick of the

:36:01.:36:04.

unlikely and the unwise and the unpredictable. But predicting the

:36:05.:36:11.

future is notoriously tricky. So no sooner had Dave Titanic Cameron

:36:11.:36:17.

called on filmmakers to make more commercially successful movies than

:36:17.:36:22.

a black-and-white French film with hardly any dialogue received ten

:36:22.:36:29.

Oscar nominations. Is it really wise to ask for that. We decided to

:36:29.:36:37.

put art v commerce in this week's spotlight.

:36:37.:36:44.

This morning, we'll share the news we've all been waiting for. Hugo.

:36:44.:36:50.

Hugo. The Descendants The Artist. It's that time again when Holyrood

:36:50.:36:54.

prepares to polish the statues. Surprisingly, with a silent French

:36:55.:37:01.

film proving to be a cut above the rest. The Prime Minister toured

:37:01.:37:05.

Pinewood Studios recently and urged British film producers to focus on

:37:05.:37:09.

making films that made a profit, rather than an artistic statement

:37:09.:37:14.

and was backed by one of the toasts of Tinsel Town. I have been

:37:14.:37:18.

critical of the idea that all public money should go into

:37:18.:37:22.

minority rather obscure films. I think that it's in the interests of

:37:22.:37:26.

the industry and indeed the public that we start building up and

:37:26.:37:29.

making more films that people want to see.

:37:29.:37:33.

Can you really predict a box office hit? Should politician bs in the

:37:33.:37:38.

business of telling artists to pick winners? Perhaps we should leave it

:37:38.:37:45.

up to the audience to decide whether art is commerce -- art

:37:45.:37:55.
:37:55.:37:58.

beats commerce. We are joined by artist, actor, singer, Charlotte

:37:58.:38:01.

Gainsbourg. Welcome to This Week. Would you ever compromise artistic

:38:01.:38:09.

values to make a bit more money? course. No, I was lucky enough not

:38:09.:38:16.

to have to make compromises in my choices and so, but I feel very

:38:16.:38:20.

lucky that way. But if what you did was listened to by a lot more

:38:20.:38:25.

people because it was more commercial or watched by a lot more

:38:25.:38:29.

people in the movies, wouldn't a little compromise be worth it if

:38:29.:38:37.

you could reach out further? No, I think what I'm hoping to do is to

:38:37.:38:45.

be able to go from one maybe obscure film to another one that'll

:38:45.:38:53.

meet Australian add Jens and then go back to something more obscure -

:38:53.:39:00.

- meet audience and then go back to something more. So a bit of both?

:39:00.:39:05.

Yes. It's very hard to know whether a film will be a success or not, so

:39:05.:39:11.

so you never know, even with very commercial films sometimes they're

:39:11.:39:15.

very big flops. And millions spent on them as well, whereas sometimes

:39:15.:39:19.

movies with a pittance spent on them can be very successful?

:39:19.:39:24.

Exactly. As politicians, rather than artists, your life is

:39:24.:39:29.

compromised, isn't it? I dare say it is, but can I come to the point

:39:29.:39:32.

what the Prime Minister said. I think he's absolutely wrong. I'm so

:39:32.:39:37.

upset with British cinema which trades on nostalgia and makes safe

:39:37.:39:42.

cosy little films which make money, Love Actually, the King's Speech.

:39:43.:39:49.

You didn't like The King's Speech? It's cosy, safe and unambitious. I

:39:49.:39:59.

look at my other homeland, Spain and it's so risky, it's so edgy,

:39:59.:40:04.

it's so original and I think that British cinema just looks very pale

:40:04.:40:07.

by comparison. For the Prime Minister to commit us to continue

:40:07.:40:12.

to make this sort of cosy, British archetypal stuff is very, very sad.

:40:12.:40:15.

He was only giving an opinion, he can't tell us what movies to make.

:40:15.:40:19.

Would you like to join this attack or come to the defence of the

:40:19.:40:25.

British movie industry? I would join the attack. Really? The French

:40:25.:40:30.

make a lot more art house movies? Yes, and if we didn't have any help

:40:30.:40:40.
:40:40.:40:41.

from the Government, I think the industry would have ended like, I

:40:41.:40:45.

don't know if it's the same, but as the Italian cinema. The Italian

:40:45.:40:49.

industry. I think we are very lucky to have that Government help.

:40:49.:40:54.

But you could say that if the taxpayer needs to subsidise the

:40:54.:40:59.

making of these films, it's only because so few people want to watch

:40:59.:41:04.

them, they need Government money? Well, I share the incredulity about

:41:04.:41:07.

David Cameron, you know, getting involved. There's an issue about

:41:07.:41:12.

the film industry. Lord Smith's just done a very good report.

:41:12.:41:16.

former Cabinet league? Chris Smith, about the practical help you can

:41:16.:41:21.

give to the film industry. You say that he was only offering an

:41:21.:41:26.

opinion, but it's the opinion of the Prime Minister of this country

:41:26.:41:33.

suggesting that somehow our taste is just Downton Abbey. There's been

:41:34.:41:36.

taxpayers' money thrown into the industry to make movies that not

:41:37.:41:40.

only they didn't even make it as flops on the screen, they didn't

:41:40.:41:47.

make it straight to video? That's because they're bad, it's not

:41:47.:41:51.

because they're risque or original or avant-garde. We want good movies

:41:51.:41:56.

which also take risks. A French film actress once said to me she

:41:56.:42:00.

was fed up with the French house plots because they are the same as

:42:00.:42:06.

Christine sleeps with Paul, Paul then sleeps with Marie, they all

:42:06.:42:10.

sleep together then all go out to dinner, that's the normal plot in a

:42:10.:42:16.

French movey? Of course, but it's great to have... Sounds like a

:42:16.:42:21.

Carry On film. It's great to have the boring films maybe but also

:42:21.:42:26.

commercial films at the same time. We do achieve that in France, we've

:42:26.:42:32.

had great successes of non-big budget films that were big

:42:32.:42:37.

successes. Across the world? Yes. suppose as a singer you have more

:42:37.:42:41.

artistic control compared to a movie, you can choose what you

:42:41.:42:49.

really want to do? Well, yes, I'm sort of in command. I can go

:42:49.:42:59.
:42:59.:42:59.

wherever I want, well, I've liked to collaborate with other people so

:42:59.:43:04.

mainly they did the work, but with a film I love to be under the

:43:04.:43:09.

command of a director, it's completely different. You can go

:43:09.:43:13.

wherever you want but glad you time to This Week tonight. Thank you.

:43:13.:43:21.

That is your lot but not for us. It's Beach VolleyBall at Annabel's

:43:21.:43:28.

sponsored by Blue Nun and Alan and Michael have volunteered to be

:43:28.:43:32.

ballboys. We await news from Whitehall's infamous honours for

:43:32.:43:36.

feature committee, a previously sloth-like beast that's been

:43:36.:43:39.

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