28/06/2012 This Week


28/06/2012

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Tonight, This Week is on Centre Court. The big hitters slog it out

:00:20.:00:25.

at Wimbledon, the big bankers are double faulting and playing by

:00:25.:00:28.

their own rules. Allister Heath says it is time for the umpire to

:00:28.:00:34.

get tough. Bashing bankers has never been part

:00:34.:00:38.

of this but after This Week's revelations they deserve all they

:00:38.:00:44.

get. Chancellor George Osborne serves up another U-turn, over fuel

:00:44.:00:49.

duties. Channel 4's Sarah Smith deals with a top-spin. The number

:00:49.:00:53.

two seed was convinced he had served an ace, but his opponents

:00:53.:00:58.

saw a double fault. There is always a handshake at the end of a tennis

:00:58.:01:03.

match. How difficult is it for opponents to put differences aside.

:01:03.:01:08.

Danny DeVito volleys some of our best loves. Are there people I

:01:08.:01:15.

would prefer not to work with? You bet, but they're not on This Week!

:01:15.:01:25.
:01:25.:01:30.

Evening all, welcome to This Week. Our weekly game of Westminster

:01:30.:01:36.

swingball, which ends in a bad temper. When it comes to tangles,

:01:36.:01:46.
:01:46.:01:53.

it seems that Boy George is To execute one U-turn is misfortune,

:01:53.:02:02.

two is carelessness, to embark on a dismantling of a Budget is an of

:02:02.:02:06.

any shambles. To let Ed Balls take the credit looks like a Government

:02:06.:02:12.

which has lost the will to govern. What should be done, if you are the

:02:12.:02:16.

Chancellor of the Exchequer in a Denis Healey-sized hole. Stop

:02:16.:02:24.

digging. Better to have your inturn, such as Chloe Smith to face the

:02:24.:02:31.

great Paxo. With 200,000 YouTube hits and climbing, being sacrificed

:02:31.:02:35.

to protect her boss, it is a lesson for work experience staff

:02:35.:02:40.

everywhere - never, ever volunteer for anything more than the photo

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copying or making the coffee. It works with Danny Alexander. Three

:02:46.:02:56.
:02:56.:02:57.

of those who are never around when the pro-ver byal hits the fan --

:02:57.:03:02.

proverbial hits the fan. We have the Princess Beatrice of late night

:03:02.:03:12.
:03:12.:03:17.

chat. I speak of Alan Johnson and chug, chug, chug, chug Michael

:03:17.:03:21.

Portillo. I enjoyed that. It is the best exercise of the week. Your

:03:21.:03:27.

moment of the week? The queeb has had a good week. I will pick today

:03:27.:03:32.

when she opened the Bomber Command memorial. 50,000 men lost their

:03:32.:03:38.

lives. So the numbers who survived it were 30 missions was very, very

:03:38.:03:41.

small. Incredibly brave men, fighting in the most appalling

:03:41.:03:46.

conditions. There was no element of the British fighting forces that

:03:46.:03:51.

lost a larger proportion. They have had to wait all this time to get a

:03:51.:03:58.

memorial because of course it was so controversial that 600,000

:03:58.:04:01.

German citizens were killed. It has nothing to do with the bravery of

:04:01.:04:07.

these men. I am delighted that the those who were killed and the

:04:07.:04:10.

bravery of those who survived has been recognised. A wonderful

:04:10.:04:19.

memorial. Marvellous. The last Lancaster we

:04:19.:04:24.

have flying over... Very, very moving. It is the handshake. When I

:04:24.:04:27.

was a union representative at the height of the troubles I

:04:27.:04:36.

represented members in Northern Ireland. 16 of my members were

:04:36.:04:40.

killed because they were postal workers. To see it transformed

:04:40.:04:45.

because of the courage of people like Robinson and McGuinness and

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yesterday the good judgment and diplomacy of the Queen, it was a

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triumph of. She handled it with dignity. Tough for the Duke as well,

:04:57.:05:02.

because his uncle was killed by the IRA. The queen has to do as she is

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told. Should she have to shake Diamond day's hand? It has not been

:05:08.:05:17.

a good week nor the banks again. First NatWest proved incapable of

:05:17.:05:23.

fulfilling its fundamental role. Then Barclays was fined for

:05:23.:05:29.

fiddling figures, in pursuit of bigger bonuses for big boy and

:05:29.:05:37.

bollinger Lady! Is it time to string them up from

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the lamppost? We have asked the editor of City AM, Allister Heath,

:05:42.:05:52.
:05:52.:06:07.

Once again, the whole country is engaging in a bunch of banker

:06:07.:06:12.

baiting. I have defended them in the past. But not this time. This

:06:12.:06:22.
:06:22.:06:25.

time, I think they deserve all the flak they are getting and even more.

:06:25.:06:30.

So, what did Barclays do wrong? They were found out manipulating a

:06:30.:06:35.

key interest rate - the liable rate, of City's gold standard which

:06:35.:06:40.

affects millions of consumers. Some rigged this for their financial

:06:40.:06:44.

self-interest. Barclays, I am shocked to say, failed to control

:06:44.:06:48.

some of their traders. Shame on them!

:06:48.:06:54.

This latest scandal will have far- reaching consequences. To be honest

:06:54.:07:00.

a �290 million fine is small fry for a bank like Barclays. People

:07:00.:07:04.

will ask, why haven't there been prosecutions? It seems there is one

:07:05.:07:09.

set of rules for rich rule-breakers and one for poor criminals. It does

:07:09.:07:19.
:07:19.:07:26.

not seem like we're all in this Barclays boss, Diamond day is not

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the monster he has been made out to be. He was at the helm when the

:07:30.:07:34.

scandal took place. Today his position is looking increasingly

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wobbly. The Government will be under

:07:44.:07:49.

pressure to further punish the City, but it should resist calls for

:07:49.:07:59.
:07:59.:08:06.

Don't forget, the City's vitally important to the British economy.

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It employs hundreds of thousands and pays �60 billion in tax a year.

:08:11.:08:16.

It needs sensible reform, not changes born out of a climate of

:08:16.:08:22.

anger. Yet the tidle wave of revelations has only just begun.

:08:22.:08:27.

Too many bankers turned a blind eye to some of their colleague's wrong

:08:27.:08:30.

doing. It will take years for the City's reputation as an

:08:30.:08:33.

international marketplace to recover. That is a tragedy for all

:08:33.:08:43.
:08:43.:08:47.

Allister Heath on the wobbly bridge over the Thames, now to our wobbly

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bridge here in Westminster. This was a conspiracy to rig the market.

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It is something Adam Smith warned us about 250 years ago. A lot of

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people were thinking, this is not a matter for fines, you don't get

:08:59.:09:03.

your bonus - this is criminal behaviour. This should be jail.

:09:03.:09:08.

Well it sound like criminal behaviour, looks like it, but

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according to the authorities it is not. That is the problem here. It

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should be criminal behaviour. It is criminal behaviour to engage in

:09:16.:09:20.

insider trading. Why isn't it a crime to do this sort of thing?

:09:20.:09:24.

That is a major issue which needs to be tackled. Would the Americans

:09:24.:09:28.

regard it as criminal behaviour? The American authorities began the

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opening of this can of worms. It may not have happened if it were

:09:32.:09:37.

not for them. They were on the ball in a way we were not in this

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country. In a way this important market was run in ar amateur is way.

:09:44.:09:50.

There was no proper -- in an amateur way. There was no proper

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supervision. They did not care about the rules. Diamond day is the

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chief executive of bark -- Bob Diamond is the chief executive of

:09:58.:10:03.

Barclays Bank. He was the boss of Barclays Capital, the investment

:10:03.:10:08.

arm, where all this shenanigans were taking place. He was giving an

:10:08.:10:13.

interview about how bankers had paid their price - it was time to

:10:13.:10:19.

move on. How stupid does that sound tonight? Very stupid, especially

:10:19.:10:25.

that he must have known his bank was sitting on this scandal. Heads

:10:25.:10:29.

will have to roll at Barclays. Someone senior will have to leave.

:10:29.:10:34.

The second in command will be sacrifices everywhere. It is a bit

:10:34.:10:38.

like the BBC! Michael Portillo, not a single

:10:38.:10:42.

banker prosecuted since the start of this crisis. The contrast of the

:10:42.:10:46.

two sides of the Atlantic is very marked. In the United States we see

:10:46.:10:51.

people in handcuffs, people going to jail. It is what will happen. In

:10:51.:10:56.

the case of Bob Diamond I would say he knew what was going on or he

:10:56.:11:00.

would not know, in which case his position is in impossible. If you

:11:00.:11:04.

don't know what is going on in your bank that is no defence. It sound

:11:04.:11:09.

like you think he should go? I do. How do you explain to the public

:11:09.:11:14.

that a Pakistani cricket who rigs a match goes to prison, but a banker

:11:14.:11:18.

who rigs the interest market does not go to prison. How do you

:11:18.:11:23.

explain fining a bank �200 million, which is a drop in the ocean for

:11:23.:11:27.

these people, when we know the bonus pot is billions? Why does

:11:27.:11:32.

Barclays keep its license? What is the point of reg laters f banks --

:11:32.:11:40.

regulators, if banks that behave badly are not under threat. We saw

:11:40.:11:44.

Enron go. I don't see why we should not see a big bank go. Unless we do,

:11:44.:11:50.

none of this will come to an end. This is not the time to stop

:11:50.:11:54.

banker-bashing. This is a moment to indulge in it. The law will not

:11:54.:12:00.

constrain these people alone. What we have to do is stigmatise this

:12:00.:12:03.

rotten behaviour and make it socially unacceptable. When we had

:12:03.:12:08.

the big bang in the 1980s - this explosion of money and the breaking

:12:08.:12:14.

of the old skooling, in some ways - the -- school, in some ways. The

:12:14.:12:17.

old critique was about greed and greed and knowing the price of

:12:17.:12:23.

everything and the value of nothing. Labour got into power, Mr Balls, Mr

:12:23.:12:30.

Darling, Mr Brown, you allowed - it was a Wild West culture that

:12:30.:12:35.

developed. If you remember the culture at the time, Michael was

:12:35.:12:39.

Shadow Chancellor. The culture was about ensuring this huge asset we

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had wasn't restricted and restrained too much. Setting up the

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FSA, getting rid of three other regulatory bodies seems sensible.

:12:49.:12:54.

In a hind site it is a mistake. We were talking about tax avoidance. I

:12:54.:12:59.

agree with Michael about this - this leaves a bad taste in the

:13:00.:13:03.

mouth. What about the morality of this? What were these people doing?

:13:03.:13:10.

I will give you a bottle of Bollinger. There was a character

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called rich -- Rich Ricky. You could not make it up! There is a

:13:17.:13:21.

question mark here, I think Bob Diamond should go. They were fined

:13:21.:13:29.

Barclays last year, �7.7 million. That is less than Bob Diamond's

:13:29.:13:39.
:13:39.:13:41.

bonus. If you have a centre-right and a centre-left commentator

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making these remarks, I don't see how the banks can put their house

:13:47.:13:51.

in order. There is a reason why Barclays will not lose its license,

:13:51.:13:54.

is 20 major banks are being investigated for this scandal. What

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we are saying is every single bank would have to lose its license.

:13:59.:14:03.

There has been corruption here at the heart of the system. I think

:14:03.:14:07.

the problem is not per se, right. I think the problem is greed which is

:14:07.:14:11.

unchecked by fear. That is the problem that has happened in the

:14:11.:14:14.

banking system, because you knew you could be bailed out, because

:14:14.:14:17.

you knew the Government would step in and save you if things went

:14:17.:14:22.

wrong. You were not cautious enough N the case of this particular sand

:14:22.:14:26.

--. In the case of this particular scandal there was no umpire to

:14:26.:14:32.

check what was going on. It has got worse rather than better. In 207

:14:32.:14:37.

you might doubt that your bank would be rescued. Before 207 you

:14:37.:14:42.

might have thought, maybe we can -- 2007 you might have thought maybe

:14:42.:14:52.
:14:52.:14:57.

You see the politicians struggling. The sound byte today of David

:14:57.:15:00.

Cameron. Ed Miliband giving a speech. It's always kind of,

:15:00.:15:04.

nothing to do with me, we are against it, we can't find the words

:15:04.:15:08.

to condemn it, yet they seem to limited in what they can really do?

:15:08.:15:13.

That's got to change. I hear tonight that there are bits of

:15:13.:15:20.

legislation that they can be prosecuted under. I mane -- mean,

:15:20.:15:24.

it would just be remarkable if the public see, and are disgusted like

:15:24.:15:28.

this, see clear criminality and find there's no law. It happened

:15:28.:15:31.

under Labour, but it's the Conservatives in power and I guess

:15:31.:15:35.

it's a plague on all your Houses as far as the public's concerned?

:15:35.:15:39.

absolutely. They blame everybody for this. To be honest, if you look

:15:39.:15:42.

at whole financial crisis which is different from this particular

:15:42.:15:45.

problem, I don't think financial crisis was caused by criminality, I

:15:45.:15:49.

think it was caused by massive - where just about everyone is to

:15:49.:15:53.

blame, Central Banks, the Americans, Chinese, regulators, consumers,

:15:53.:15:59.

bankers, investors, absolutely frb. That's the issue. We feel not had

:15:59.:16:03.

the right reform when it comes to the banking and financial system.

:16:03.:16:09.

Maybe we should have a banking for the Leveson -- Leveson for the

:16:09.:16:13.

banking sment. Sounds like you are saying this is just the tip of the

:16:13.:16:20.

iceberg. Barclays got fined but they were first up. They kind of

:16:20.:16:24.

fessed up when they got rumbled. Other banks could be in line for

:16:24.:16:30.

bigger fines now? I suspect we'll see bigger fines for other banks

:16:30.:16:33.

which is a massive blow for London's reputation as a financial

:16:33.:16:36.

centre because this was a key global interest rate that was set

:16:36.:16:40.

here in London and basically what's happened is that London's not got

:16:40.:16:44.

its act together. The banks were not able to do something that

:16:44.:16:48.

worked that was trustworthy. That's a massive blow for the UK economy.

:16:48.:16:51.

Ultimately, the City's vitally important to the UK economy and

:16:51.:16:55.

pays a lot of tax, employs a lot of people. It needs to be reformed

:16:55.:16:59.

sensibly to make it work better to make it stronger and unfortunately,

:16:59.:17:04.

we've got all these problems. very important when the banks say

:17:04.:17:08.

you mustn't kill the goose that lays the golden eggs by over-

:17:08.:17:11.

regulation. Actually, a vital part of the City is that people should

:17:12.:17:14.

have confidence that it is properly regulated.

:17:14.:17:21.

The rest of the world uses this rate, it looks to London because it

:17:21.:17:25.

thinks it can trust London. We didn't become prosperous by

:17:25.:17:30.

being the sharks but by being the best regulated market. These two

:17:30.:17:37.

think kb Bob Diamond should go. Shall me and you agree that he

:17:37.:17:43.

probably won't go? Diamond came out fighting today. But someone will

:17:43.:17:47.

have to go for this. Other people will have to go at other banks but

:17:47.:17:52.

it's not just a problem with barricallys but a lot of global

:17:52.:17:55.

banks. Expecting the board to do anything about it is a pathetic

:17:55.:18:00.

hope isn't it? That's not going to happen. There could be more bodies

:18:00.:18:05.

lying around in the coming week. Those of you who have trouble

:18:05.:18:10.

sleeping at night - talking to you Gary Barlow and you Bob Diamond.

:18:10.:18:15.

Put aside those pills and pour yourself a picture of the van bleu

:18:15.:18:20.

instead. Coming up - and we can hardly believe it ourselves -

:18:20.:18:25.

Hollywood director, producer, star of the West End stage, Danny Devito.

:18:25.:18:29.

He'll be talking about the art of putting personal and political

:18:29.:18:34.

differences aside and for those of you who can't help burying a grudge,

:18:34.:18:39.

which is most of the audience, remember, in's the Twitter, the

:18:39.:18:42.

fleecebook and the missionary position interweb. Strawberries and

:18:42.:18:46.

cream time again when the great and good and under employed bunk off

:18:46.:18:50.

for the day and rock up at the Royal Box at Wimbledon for the

:18:50.:18:54.

yearly Festival of High-class sport and middle-class work donling.

:18:54.:19:00.

Leading the way is Britain's most famous NEAT, that's not in

:19:00.:19:03.

education, employment or training, yes, pip that Middleton, so we

:19:03.:19:08.

decided if it's good enough for her, it's probably not good enough for

:19:08.:19:12.

us. We sent the girl with the tattoo, Channel 4's Sarah Smith,

:19:12.:19:22.
:19:22.:19:31.

this is the round-up of the Thank you heavens for Wimbledon. A

:19:31.:19:35.

Championship as British as strawberries and cream. A ver

:19:35.:19:40.

itable bastion of civility and respectability. OK, some of the

:19:40.:19:44.

tennis stars might be sporting the odd power tattoo these days but I

:19:44.:19:47.

bet they could still teach our British politicians a thing or two

:19:47.:19:51.

about fair play in sporting behaviour. And after all, you can't

:19:51.:20:01.
:20:01.:20:12.

Now, it's not just tennis stars displaying a fondness for body art

:20:12.:20:17.

these days. It's said that Winston Churchill had an anchor tattooed on

:20:17.:20:19.

his arm. So was the Chancellor George Osborne thinking Churchill

:20:20.:20:25.

or Popeye when he revealed his latest surprise? A delay in the 3p

:20:25.:20:29.

rise in fuel duty. Now, he can't tell us how much it's going to cost

:20:29.:20:34.

and he can't tell us where the money's going to come from, but he

:20:34.:20:38.

still thought he'd served an ace. His opponents saw a double fault.

:20:38.:20:41.

We are on the side of working families and businesses and this

:20:41.:20:45.

will fuel our recovery at this very difficult economic time for the

:20:45.:20:48.

world. The Shadow Shadow Chancellor Ed Balls is more of a bare knuckle

:20:49.:20:52.

fighter than tennis player, the kind of man who might have love and

:20:53.:20:56.

hate tattooed on his fists but he saw the opportunity to lob a few

:20:56.:21:00.

long shots at the Chancellor. have had U-turns on pasties,

:21:00.:21:06.

churches, charities, caravans, skips and today a U-turn on fuel

:21:06.:21:10.

which we welcome. The Chancellor did manage to return

:21:10.:21:13.

most volleys but for some reason, he didn't seem confident in his

:21:13.:21:18.

game off the court, so we put the ballgirl up against an old Grand

:21:18.:21:21.

Slam master. Can you tell us from which departments that gap is going

:21:21.:21:27.

to be made up? The figure will be drawn from under-spends in

:21:27.:21:32.

departmental budgets. Yes. Where? Which department is it going to

:21:32.:21:36.

come from? They fall from different... Just name me a few

:21:36.:21:40.

departments? No, I won't do that because we'll be... You don't know?

:21:40.:21:43.

We'll give you the details in the autumn statement. Are you waiting

:21:43.:21:47.

to be told that as well? No. Do you ever wake up in the morning and

:21:47.:21:52.

think, my God, what am I going to be told today?

:21:52.:21:56.

Not exactly an impressive display of girl power there, but in the

:21:56.:22:00.

week when we saw the Spice Girls all back together again, we also

:22:00.:22:04.

saw some sisterly solidarity in the Conservative Party. Two female Tory

:22:04.:22:10.

MPs did stand up for Chloe Smith, one of them called George Osborne a

:22:10.:22:15.

coward for not going on Newsnight himself. And then, the Tory party's

:22:15.:22:19.

number one seed had to display fancy footwork when he was caught

:22:19.:22:28.

at the net. The fuel duty incress was a Labour tax rise. It cannot be

:22:28.:22:32.

a U-turn to get rid of a Labour tax increase.

:22:32.:22:35.

The Government has grown accustomed to losing a few game points over

:22:35.:22:39.

their U-turns by now and they know it won't necessarily cost them the

:22:39.:22:43.

match. But the real problem for team Cameron is how can he promise

:22:43.:22:47.

to spend every penny on slashing the deficit and then spend all that

:22:47.:22:57.
:22:57.:23:03.

cash on tax cuts for motorists and Easy to think all the sporting

:23:03.:23:06.

action is taking place in London this summer but don't forget the

:23:07.:23:10.

fun and games in the eurozone as yet another crucial European summit

:23:11.:23:14.

gets going in Brussels. Even the Governor of the Bank of England,

:23:14.:23:18.

Mervyn King, says he doesn't know who's going to win this game. Now,

:23:18.:23:25.

where do we go from here? When this crisis began, 2007, 200,

:23:25.:23:28.

most people, including ourselves, did not believe that we would still

:23:28.:23:33.

be right in the thick of it, the middle of it, five years later. All

:23:33.:23:37.

the way through, I said to the committee, I don't think we are

:23:37.:23:47.
:23:47.:23:48.

It's a rare day at Wimbledon when it isn't raining and it's tempting

:23:48.:23:51.

to think that maybe this brief spell of good weather inspired

:23:52.:23:55.

David Cameron's blue sky thinks when it came to rel fare we form.

:23:55.:23:59.

For literally millions, the passage to independence is several years

:24:00.:24:03.

living in their childhood bedroom as they save to move out while for

:24:03.:24:07.

others it's a trip to the council where they can get Housing Benefit

:24:07.:24:12.

at 18 or 19, even if they are not really actively seeking work.

:24:12.:24:15.

have some big ideas on welfare reform, a growing economic crisis

:24:15.:24:18.

in the eurozone and a double dip recession here at home. That is a

:24:19.:24:24.

lot of balls in the air. So when Lib Dem MPs insist now is the right

:24:24.:24:27.

time to introduce a Bill to reform the House of Lords, you can see why

:24:27.:24:30.

other MPs accuse them of rather unsporting behaviour.

:24:30.:24:33.

The idea that you can't do more than one thing at once in politics

:24:33.:24:38.

just as in life, I just think it's really silly.

:24:38.:24:44.

Even if Nick Clegg does get his bay way, the new look Upper House won't

:24:44.:24:48.

be filled with the Senators until 2025, and we can only hope this

:24:48.:24:58.
:24:58.:25:05.

influx of commoners doesn't dilute She'll never get the tattoos off,

:25:05.:25:10.

you know. We are joined, as we often rrbgs and we welcome you,

:25:10.:25:15.

Miranda Green. We are sitting here in the Westminster village which

:25:15.:25:20.

says all parties in their manifesto backed House of Lords reform in

:25:20.:25:23.

principle? Indeed. Stkpwh I mean the three main party leaders,

:25:23.:25:27.

National Partys, say that they want it to happen, they are going to

:25:27.:25:31.

instruct their traps to vote and yet as we sit here, the consensus

:25:31.:25:36.

is it won't happen. Explain? I think this is one of these rather

:25:36.:25:40.

depressing occasions where the merits of the case, in this case

:25:40.:25:46.

for reform of the upper chamber have been completely lost in

:25:46.:25:49.

political in-fighting, intrigue, tit-for-tat revenge now from the

:25:49.:25:54.

backbenchers of the two coalition parties, the Tory party were very

:25:54.:25:58.

insulted that Nick Clegg didn't back David Cameron over Jeremy Hunt

:25:58.:26:02.

and the sort of slightly getting their revenge by saying they'll

:26:03.:26:05.

rebel over House of Lords reform. The Labour Party for their own

:26:05.:26:08.

reasons are saying this isn't right, we don't like the way it's being

:26:08.:26:12.

handled in Parliament and don't like the way it's going to be

:26:12.:26:16.

debated. So it's an unholy mess. I think if you are the Liberal

:26:16.:26:21.

Democrats and you after 100 years have an opportunity to have a go,

:26:21.:26:25.

you have to cheerlead as one of your own priorities. We know it's

:26:25.:26:29.

important to Nick Clegg and he sees this as a way of making up for the

:26:30.:26:35.

complete shambles of the AV referendum. But is it really that

:26:35.:26:40.

important to Lib Dems in the large? Is it really an issue that gets him

:26:40.:26:44.

out of bed? I think that's a very, very good question actually and is

:26:44.:26:50.

the right one and I think the Lib Dems should ask it of themselves

:26:51.:26:54.

actually because... It's hard to tell isn't it? The reason for this

:26:54.:26:58.

coalition is not actually a comprehensive programme of

:26:58.:27:01.

constitutional reform. It is to do with stability and the economy

:27:01.:27:06.

which, as we have seen today, you know, is far from solved. However,

:27:06.:27:12.

it's the case that you can do more than one thing at a time. And also

:27:12.:27:16.

really Parliamentarians have moaned now for a very long time what the

:27:16.:27:22.

executive is too powerful, Parliament doesn't have enough ways

:27:22.:27:25.

of reining them in. This is a way of adding legitimacy to Parliament

:27:25.:27:30.

and it's an opportunity that people who're serious about reform should

:27:30.:27:35.

think. Labour is supporting it in principle, as they should, the

:27:35.:27:38.

elected second chamber, overwhelmingly elected and you are

:27:38.:27:42.

going to cause as much trouble as possible in the process? Well, I'm

:27:42.:27:45.

not and we are supporting the second reading and I support this

:27:45.:27:49.

as much as Nick Clegg. I don't know why we are saying the Lib Dems

:27:49.:27:53.

should be supporting this, it was one of kaer Hardy's founding

:27:53.:27:59.

principles, it's a monument of pat Ronage, institutionalised snobbery.

:27:59.:28:03.

It's a stain upon our democracy. Since 1997, there's been lots of

:28:03.:28:07.

attempts to find a middle way because there's people worried

:28:07.:28:11.

about primacy in the Commons et cetera and great Labour stalwarts

:28:11.:28:17.

like one of my heroes, the late Robin Cook, Tony Wright, others

:28:17.:28:21.

working with people like William Hague and George Young came up with

:28:21.:28:27.

this, called breaking the dead log, which I supported. All these

:28:27.:28:31.

proposals came from that discussion. We have all had to compromise.

:28:31.:28:35.

party's not going to vote for the programme motion which is the

:28:35.:28:39.

motion that allowed... Since it's a constitutional issue, got to take

:28:39.:28:42.

place on the floor of the House, you don't have a programme motion

:28:42.:28:45.

limiting the time to reasonable amounts, it will dominate the whole

:28:45.:28:50.

session? But there's a very good point about this, which given that

:28:50.:28:54.

it's Lord's reform, if we send it to the Lord's and it's not been

:28:54.:28:59.

properly debated in the Commons, that won't be good. There should be

:28:59.:29:02.

a referendum on big constitutional issues like this. I think it knead

:29:02.:29:06.

a referendum and that's a very important thing. Where are you on

:29:06.:29:09.

this Michael? The House of Lords in its present form is in a hopeless

:29:09.:29:14.

state of affairs, however it's a huge leap to go from saying the

:29:14.:29:19.

solution is to elect 80% of the members for 15-year terms. I think

:29:19.:29:24.

that's a ludicrous proposal. So I don't actually agree with what

:29:24.:29:27.

Miranda said that it's tit-for-tat. I think it's hard to believe that

:29:27.:29:30.

this is the right proposal that you should make. My own solution would

:29:30.:29:36.

be to go bit by bit, cut the House of Lords in half, then get rid of

:29:36.:29:39.

the hereditaries, cut in half probably by having an election

:29:39.:29:43.

within the members of the House of Lords to see which were the popular

:29:43.:29:53.
:29:53.:29:53.

people who could stay and see how The American Senate manages with

:29:53.:29:58.

100. Another week, another U-turn. What do you think the U-turn will

:29:58.:30:03.

be next week? I think it is a sign, as was the �80 billion injection

:30:03.:30:09.

into the banks of how serious the Government thinks things are. It

:30:09.:30:14.

does not enjoy doing U-turns. It is a serious amount of money. Where is

:30:14.:30:19.

the money coming from. The Government believe the stimulus is

:30:19.:30:22.

needed to prevent the further stalling of the economy. On this

:30:23.:30:28.

fall out from the Budget, the collateral damage is to the Tories?

:30:28.:30:38.

The Lib Dems are well shielded. Even though they are responsible?

:30:38.:30:42.

Cumulatively the pain is shared. You get the impression that if you

:30:42.:30:46.

push hard enough on any issue the Government will cave in, which does

:30:46.:30:50.

not make it look like a strong front. You need a strong Government.

:30:50.:30:59.

If it is not plan B, what is it? This should have been good news,

:30:59.:31:06.

shouldn't it? It makes it seem as if there's no skill. The way that

:31:06.:31:11.

George Osborne handled this, from springing it on, aparently the

:31:11.:31:16.

Cabinet, poor old Justine Greening was going out to defend it. If the

:31:16.:31:20.

fiscal deve it is is your number one priority, you don't -- deficit

:31:20.:31:24.

is your number one priority, you don't throw it away. You can make

:31:24.:31:33.

an argument on that and you can't say, we'll take it from

:31:33.:31:36.

departmental under-spends. underlines how worryed the

:31:36.:31:43.

Government is about the financial position. Let's look at what

:31:43.:31:47.

happened. In June 2010, the Chancellor told us it would be five

:31:47.:31:52.

years of austerity to get the fiscal deficit right. In the Pre-

:31:52.:31:56.

Budget Report last year, he told us two. We are up to seven. The

:31:56.:32:01.

Cabinet Secretary says up to 10 and now the Governor of the Bank of

:32:01.:32:08.

England says we're not even half- way through. You have to look at

:32:08.:32:15.

what is going on, the economy is not growing. We are borrowing 8% of

:32:15.:32:18.

national GDP every year. When the national debt reaches a certain

:32:18.:32:23.

point the markets go wild. And the problem for the coalition is the

:32:23.:32:28.

original game plan, with the five years, everything would be hunky

:32:28.:32:33.

dorry you would fight the 2015 election saying we know it has hurt,

:32:33.:32:38.

but we've been through the worst and the sunny up lands around the

:32:38.:32:42.

corner, don't let Labour screw it up. This was an interesting week.

:32:42.:32:46.

Some of it last week, with Michael Gove playing to the gallery, you

:32:46.:32:51.

know, the Tory Party seems to me is starting to lay out its stall for

:32:51.:32:55.

the next election. Everyone will think in this way. The background

:32:55.:33:01.

is a decade or more of austerity. All these problems which have been

:33:01.:33:05.

kicked into the long grass - what do you do with an ageing population

:33:05.:33:11.

- they have to be addressed. thrash the country and then you

:33:11.:33:20.

throw some money at it. He's been thinking to get that line

:33:20.:33:26.

in. Thank you to Alan Johnson's script writer for that!

:33:26.:33:33.

Now Michael and Diane, Michael and Jacqui, Michael and Alan. It is

:33:33.:33:42.

like a Westminster wife-swapping party, choo, choo Portillo has a

:33:42.:33:47.

different parter in every week. How easy is it to put aside your

:33:47.:33:53.

personal and professional differences and keep it up so late

:33:53.:34:03.
:34:03.:34:10.

# Bring me sunshine # In your smile # As Danny DeVito

:34:10.:34:16.

takes to the West End, reunited with a partner he's not spoken to

:34:16.:34:20.

for years, can personal differences be put aside for one last show? The

:34:20.:34:25.

Spice Girls seem to think so, with the launch of their new musical,

:34:25.:34:30.

even if Posh does not want to be there. It doesn't matter how long

:34:30.:34:36.

it is - 16 years on, we feel like family members. With speculation

:34:36.:34:43.

that Danny will get together with Arnold Schwarzenegger for a Twins

:34:43.:34:47.

sequel, are personal differences easier to overcome? Northern

:34:47.:34:52.

Ireland shows what is possible, with a royal Belfast handshake that

:34:52.:35:00.

has brought 1,000 words. This is an opportunity for me to extend the

:35:00.:35:05.

hand of peace and reconciliation to Queen Elizabeth. So long as our own

:35:05.:35:15.
:35:15.:35:22.

sunshine boys keep their roving We are joined by Danny DeVito.

:35:22.:35:28.

Hello. Who does think these two share a bed. Got our pyjamas on.

:35:28.:35:34.

That is really crazy. I was looking outside, desperately trying to find

:35:34.:35:38.

a striped shirt to put on. No, two is more than enough. You are

:35:38.:35:46.

treading the boards. You are in The Savoy theatre, you are doing The

:35:46.:35:50.

Sunshine Boys, a tale of two former stars who are very different. You,

:35:50.:35:56.

as an actor and director, have you been forced to work with somebody

:35:56.:36:00.

who you would prefer not to?Vy very fortunate, like most of the

:36:00.:36:04.

time I have worked with really nice people and I have a lot of friends

:36:04.:36:10.

who I work with a lot over and over again. Like Michael Douglas, Jack

:36:10.:36:16.

Nichol son. All these guys I have grown up with. They are all really,

:36:16.:36:22.

really kind, generous people. I've been in a good spot for many, many

:36:22.:36:30.

years, on Taxi - all the people on Taxi, we were like a family for

:36:30.:36:38.

five years. Nobody you would have said, "Get me out of this studio!"

:36:38.:36:42.

There are people who may not focus the way you like them to. Those are

:36:42.:36:47.

the people you avoid. Those are the people who have their own problems

:36:47.:36:52.

and thinks that they... That's personal stuff. Somebody like, for

:36:52.:36:57.

instance, if a movie star, say, or a director or producer, who treats

:36:57.:37:02.

the people who work for them in not a kind way, an unkind way, those

:37:02.:37:07.

are the people that you just say, you put a tag on that and you say,

:37:07.:37:10.

if they, if that's the way they're going to be in life, you would

:37:10.:37:14.

rather not work with them. But most of them... I have been very

:37:14.:37:19.

fortunate. Acting, when you look from the outside, acting seems like

:37:19.:37:23.

a love-in, everybody is publicly nice to each other, which is the

:37:23.:37:28.

opposite of politics. Behind, away from the public gaze, can it be

:37:28.:37:34.

just bitchy as politics? It depends on the whole... And my mother used

:37:34.:37:38.

to say, that fish stinks from the head. So, if you have a situation

:37:39.:37:44.

where I produced many movies and have acted in many, directed seven

:37:44.:37:51.

or eight. The idea is, if the person in the helm has a clear,

:37:51.:37:54.

first of all they understand what they want, and they are not

:37:54.:37:59.

operating out of greed and fear, then, you know, they are really

:37:59.:38:01.

genuinely thinking about the project. Most of the time it will

:38:01.:38:05.

work out really good. Things will be smooth. There may be differences

:38:05.:38:10.

of opinion and this, that and the other, but in the long-term, it's

:38:10.:38:15.

solid. If there's something up there -- somebody up there what is

:38:15.:38:19.

not a really good person, somebody who is abusing the power, then it

:38:19.:38:25.

is the same thing in movies or politics or anywhere. For you, what

:38:25.:38:30.

has been more difficult to reconcile - personal or political

:38:30.:38:33.

differences? I find everybody has their own certain world view of

:38:33.:38:37.

things which are going on. Personal differences, I mean, like I said, I

:38:37.:38:42.

have been very fortunate to work with people who I have gotten on

:38:42.:38:49.

with and occasionally you butt heads with maybe a studio executive

:38:49.:38:55.

or some financial things where they are in a spot where they need to

:38:55.:38:59.

fight for, to keep the budget down. Sometimes and that happens, it has

:38:59.:39:05.

happened in the past, but never to the point where it was

:39:05.:39:13.

irreconcilable. Like Arnold and I. We are totally opposite ends, I am

:39:13.:39:20.

a Democrat. He's a Republican. He was a supporter of Alex Bushill --

:39:20.:39:26.

of George Bush. I am not. We have those kind of... You get on well?

:39:26.:39:30.

We get on well like on set. We've done two movies together. We are

:39:30.:39:36.

planning a third. Are you going to do another one? Now he has finished

:39:36.:39:41.

with this insanity of being governor of California. You mean go

:39:41.:39:47.

back to a real job. Are you often mistaken for each other? No. The

:39:47.:39:52.

idea is that now we have been speaking, just before I came here

:39:52.:39:58.

to do The Sunshine Boys, which I am having a great time doing with

:39:58.:40:03.

Richard Griffiths. Before that, we had several dinners, talked about

:40:03.:40:06.

the possibility of doing a new movie and we decided that we wanted

:40:06.:40:16.
:40:16.:40:17.

to call it Triplets and we reached out to Eddie Murphy to see if he

:40:17.:40:21.

would.... That would work! Politics involves working people you don't

:40:22.:40:26.

like, because row have no choice. Let me give you an example, not

:40:26.:40:29.

someone I didn't like but after Michael Heseltine challenged

:40:29.:40:34.

Margaret Thatcher for the leadership and unseated Margaret

:40:34.:40:38.

Thatcher, it felt to me the day after that to work for Michael

:40:38.:40:43.

Heseltine. I found the experience uplifting. We worked to abolish the

:40:43.:40:47.

poll tax, the community charge and we were politically different, but

:40:47.:40:51.

it was uplifting. We had to find a way to win the subsequent election,

:40:51.:40:56.

getting rid of the poll tax. He remains a very good friend for me

:40:56.:41:02.

today. Do you care to tell us who you don't like working with?

:41:02.:41:05.

The biggest challenge in politics is a coalition. Each party is a

:41:05.:41:11.

coalition. That is true. In our country it is different.

:41:11.:41:16.

Right now, what's going on right now is not a... You have got people

:41:16.:41:23.

who are definitely just one, with one thing on their mind. It has

:41:23.:41:29.

become personal. It is like a big, it's a big... Just yesterday they

:41:29.:41:38.

voted to allow, uphold the crazy law where you can, anybody can

:41:38.:41:42.

donate, any corporation... amount of money. So all these

:41:42.:41:46.

people with billions of dollars pay money to get people into office and

:41:46.:41:51.

do anything they can. It's not like really what politicians are

:41:52.:41:55.

supposed to be doing. They are supposed to represent the voice of

:41:56.:42:02.

the people. Have you noticed a time when America was more polarised and

:42:02.:42:09.

politics more bitter than it is now and the media egging it on in

:42:09.:42:14.

America? Look things all over the world are not getting better. It's

:42:14.:42:17.

not only politics, it's like everything - the population, the

:42:18.:42:23.

supply of water. Everything is getting, we're... The planet is

:42:24.:42:28.

shrinking. We're becoming like. We're a blink in the eye. We are

:42:28.:42:32.

just like that. That is what we are. If you look at the eve vow luegsry

:42:32.:42:37.

scheme of things, we are like a tiny blink. We don't realise that.

:42:37.:42:43.

We think we'll be here forever. It's not true. So, it may be our

:42:43.:42:49.

time. We want maybe see all this, but if we have children or

:42:49.:42:52.

grandchildren, their children, anybody who you invest your

:42:52.:42:56.

emotional investment into, you have got to look down the line and say

:42:56.:43:04.

it is going faster and faster. It is deteriorating. We have run out

:43:04.:43:09.

of time. Good luck in The Sunshine Boys. Come and see us at The

:43:09.:43:14.

Savoy.Ly be there until 20th July. That is your lot tonight, folks.

:43:14.:43:23.

Not for us. For once we are going to sofrbl unionist with the ASBO

:43:23.:43:29.

dodging crews. We are off to their favourite fish and chip shop - The

:43:29.:43:32.

Laughing Halibut, in Victoria. Which celebrates 30 years in the

:43:32.:43:38.

business and nearly 10 years of making our production office

:43:38.:43:43.

stinking of vinegar. News that MPs have taken their sex-change,

:43:43.:43:48.

gender-reassignment surgery of Big Ben just a little too far. We say,

:43:49.:43:54.

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