0:00:18 > 0:00:21Hello and welcome to Tuesday in Parliament.
0:00:21 > 0:00:22Coming up:
0:00:22 > 0:00:25After resignations and recriminations in Northern Ireland,
0:00:25 > 0:00:28MPs are told divisive new elections could be on the way.
0:00:28 > 0:00:30The clock is ticking.
0:00:30 > 0:00:34If there is no resolution, then an election is inevitable.
0:00:34 > 0:00:38MPs hear not enough is being done to tackle hate crime.
0:00:38 > 0:00:41And a Transport Minister calls for an end to the strike saga
0:00:41 > 0:00:43on Southern Rail.
0:00:43 > 0:00:46So, I say to the unions, as the Secretary of State has done,
0:00:46 > 0:00:48not on one occasion, but twice, come and meet him,
0:00:48 > 0:00:50call off the dispute and let's resolve this dispute.
0:00:50 > 0:00:53It has gone on far too long.
0:00:53 > 0:00:55But first, a political crisis is threatening the future
0:00:55 > 0:00:59of the power-sharing arrangements in Northern Ireland.
0:00:59 > 0:01:01On Monday night, Sinn Fein's Martin McGuinness resigned
0:01:01 > 0:01:05as Deputy First Minister and in effect brought down
0:01:05 > 0:01:08the devolved administration at Stormont, because his decision
0:01:08 > 0:01:10meant the First Minister, Arlene Foster of the Democratic
0:01:10 > 0:01:15Unionist Party, could no longer stay in her role.
0:01:15 > 0:01:22The Northern Ireland Secretary came to the Commons.
0:01:22 > 0:01:24As things stand, therefore, an early Assembly election
0:01:24 > 0:01:26looks highly likely.
0:01:26 > 0:01:29I should add that once an election has been held,
0:01:29 > 0:01:33the rules state that the Assembly must meet again within one week,
0:01:33 > 0:01:39with a further two week period to form a new Executive.
0:01:39 > 0:01:42Should this not be achieved, then, as things currently stand,
0:01:42 > 0:01:46I'm obliged to call another election.
0:01:46 > 0:01:50So, right honourable and honourable members should be in no doubt,
0:01:50 > 0:01:53the situation we face in Northern Ireland today is grave
0:01:53 > 0:01:57and the Government treats it with the utmost seriousness.
0:01:57 > 0:02:00Martin McGuinness resigned after Arlene Foster refused
0:02:00 > 0:02:03to temporarily step aside during an investigation
0:02:03 > 0:02:07into her handling of a controversial green energy scheme,
0:02:07 > 0:02:11which could end up costing taxpayers almost half a billion pounds.
0:02:11 > 0:02:14Businesses and other nondomestic users were offered a financial
0:02:14 > 0:02:19incentive to install renewable heat systems on their premises.
0:02:19 > 0:02:21The scheme was finally shut down to new applicants
0:02:21 > 0:02:24in February last year, when it became clear that the lack
0:02:24 > 0:02:29of an upper limit on payments, unlike the GB equivalent,
0:02:29 > 0:02:31meant that the scheme was open to serious abuse.
0:02:31 > 0:02:34He said there needed to be an enquiry into the scheme,
0:02:34 > 0:02:37known as RHI, as soon as possible.
0:02:37 > 0:02:40While the RHI might have been the catalyst for the situation
0:02:40 > 0:02:45we now face, it has, however, expressed a number
0:02:45 > 0:02:49of deeper tensions in the relationship between parties
0:02:49 > 0:02:52within the Northern Ireland Executive.
0:02:52 > 0:02:55This has led to a breakdown in the trust and cooperation
0:02:55 > 0:02:58that is necessary for the power sharing institutions
0:02:58 > 0:03:02to function effectively.
0:03:02 > 0:03:03The clock is ticking.
0:03:03 > 0:03:06If there is no resolution, then an election is inevitable.
0:03:06 > 0:03:09Despite the widely held view that this election may deepen
0:03:09 > 0:03:11divisions and threaten the continuity of
0:03:11 > 0:03:14the devolved institutions.
0:03:14 > 0:03:16He said Northern Ireland's politicians had won international
0:03:16 > 0:03:20plaudits for overcoming differences and working together, and that had
0:03:20 > 0:03:23required courage and risk.
0:03:23 > 0:03:26Political stability had been hard gained and should not be
0:03:26 > 0:03:28lightly thrown away.
0:03:28 > 0:03:30Labour said it would support the Minister's efforts to keep
0:03:30 > 0:03:37stability in Northern Ireland.
0:03:37 > 0:03:39With is so much at stake, not least
0:03:39 > 0:03:42the institutions themselves, Surely it is time for moderation.
0:03:42 > 0:03:44Lines in the sand are not what are needed.
0:03:44 > 0:03:46I do not believe, from the feedback we are
0:03:46 > 0:03:49getting from the people on the ground in Northern Ireland, that
0:03:49 > 0:03:52the population wants the election, let alone one so soon.
0:03:52 > 0:03:55Is it really what the people want?
0:03:55 > 0:03:57It should be possible to come up with a rigorous,
0:03:57 > 0:04:00transparent and comprehensive way to investigate the overspend
0:04:00 > 0:04:03on the RHI, which does not have to involve the break-up
0:04:03 > 0:04:05of the coalition or an early election,
0:04:05 > 0:04:09or the First Minister standing down.
0:04:09 > 0:04:12The DUP accused Sinn Fein of having its own agenda.
0:04:12 > 0:04:16We share the deep regret at the highly irresponsible decision
0:04:16 > 0:04:20of Sinn Fein to single-handedly caused the collapse of the present
0:04:20 > 0:04:24Executive, and precipitate what the Secretary of State
0:04:24 > 0:04:26has rightly called this threat to the continuity
0:04:26 > 0:04:28of the devolved institutions.
0:04:28 > 0:04:32And it is clear from what Sinn Fein have said in the resignation letter,
0:04:32 > 0:04:35it is not about RHI, because had this continued,
0:04:35 > 0:04:38we would have had the investigation and proposals to mitigate costs,
0:04:38 > 0:04:41but it is because, according to them, they are not
0:04:41 > 0:04:43getting their own way on a whole series of demands, including
0:04:43 > 0:04:46rewriting the past and putting more soldiers and security forces
0:04:46 > 0:04:49in the dock.
0:04:49 > 0:04:51Fundamental to the political institutions in Northern Ireland
0:04:51 > 0:04:54were the principles of power-sharing, partnership and
0:04:54 > 0:04:58respect for political difference.
0:04:58 > 0:05:01In the last number of weeks, we have seen the disappearing
0:05:01 > 0:05:06and the withering away of the principle of power-sharing.
0:05:06 > 0:05:10Formerly by the DUP.
0:05:10 > 0:05:13Will the Secretary of State ensure, in his discussions
0:05:13 > 0:05:17with the political parties in Northern Ireland,
0:05:17 > 0:05:21that those principles are adhered to and that everybody comes back
0:05:21 > 0:05:26to the principle of power-sharing?
0:05:26 > 0:05:28I think...
0:05:28 > 0:05:31I think the important part of the political settlement
0:05:31 > 0:05:35within Northern Ireland is that fact that it works for all communities
0:05:35 > 0:05:37across Northern Ireland.
0:05:37 > 0:05:40James Brokenshire.
0:05:40 > 0:05:42Some schools and police forces have been turning
0:05:42 > 0:05:46a blind eye to hate crime, MPs have been told.
0:05:46 > 0:05:49Representatives of the Polish community in the UK told
0:05:49 > 0:05:51the Home Affairs Committee that there was an "explosion"
0:05:51 > 0:05:55of incidents after the vote to leave the European Union.
0:05:55 > 0:05:58In one incident, a few days after the referendum,
0:05:58 > 0:06:01xenophobic graffiti was scrawled on the doors of a Polish
0:06:01 > 0:06:03community centre in London.
0:06:03 > 0:06:06We at the Polish Centre, as you may be aware,
0:06:06 > 0:06:11have experienced an example of that, in that we had this graffiti
0:06:11 > 0:06:13across the front of our building.
0:06:13 > 0:06:16Which was definitely a first for us.
0:06:16 > 0:06:19We had never had anything like that at the centre and we're very much
0:06:19 > 0:06:21part of the local community.
0:06:21 > 0:06:24So, that was a big shock to us and to the staff,
0:06:24 > 0:06:27and to the people who come to the Polish Centre.
0:06:27 > 0:06:31I would like to say that, and again, you may be aware that we have had
0:06:31 > 0:06:36the most amazing outpouring of response from the community,
0:06:36 > 0:06:40the British community, you know, masses of flowers and messages
0:06:40 > 0:06:44and cards and so on, which was really, really nice for us.
0:06:44 > 0:06:47But she had further examples of hate crime.
0:06:47 > 0:06:50Lots of people who come to our centre do tell us about...
0:06:50 > 0:06:53Some of it is quite casual, you know, a waitress
0:06:53 > 0:06:55in a cafe will be told, "Why haven't you packed
0:06:55 > 0:06:57your bags and gone home?"
0:06:57 > 0:06:59That sort of thing.
0:06:59 > 0:07:03Quite a lot in schools, to children, you know,
0:07:03 > 0:07:05they will presumably hear it from home, you know,
0:07:05 > 0:07:07"You should be going home now."
0:07:07 > 0:07:11We had some bad cases of abuse in the workplace, where,
0:07:11 > 0:07:16for example, in one of the local councils in South England,
0:07:16 > 0:07:19a Polish citizen, a Polish worker at the council,
0:07:19 > 0:07:22was abused on the night of counting the votes,
0:07:22 > 0:07:27she was on the vote counting committee, and that was...
0:07:27 > 0:07:29She was told essentially that in this situation,
0:07:29 > 0:07:33she would need to pack and go away, finally.
0:07:33 > 0:07:36And we had many, many reports in schools,
0:07:36 > 0:07:38where there was physical abuse and violence towards
0:07:38 > 0:07:44Eastern European, broadly speaking, children, with very little response
0:07:44 > 0:07:49from the schools, as institutions, which is our concern.
0:07:49 > 0:07:52Some schools are exemplary, in how they deal with tensions,
0:07:52 > 0:07:56post-Brexit referendum.
0:07:56 > 0:08:01Some, however, we feel, are still turning a blind eye,
0:08:01 > 0:08:04and that is a big concern for the future of communities.
0:08:04 > 0:08:08The problem, in our experience, is deepened by the mixed
0:08:08 > 0:08:11response from the police.
0:08:11 > 0:08:14So, when people do want to report hate crime, or hate speech,
0:08:14 > 0:08:17or just have concerns and go to the police about
0:08:17 > 0:08:21whether they should be doing something about it,
0:08:21 > 0:08:26um, I'm afraid, I'm sorry to say that not all Police Services
0:08:26 > 0:08:31are ready to respond to hate crime.
0:08:31 > 0:08:36Sometimes it is being, um, waved away as an employment issue
0:08:36 > 0:08:39that is not a police matter, that it is discrimination,
0:08:39 > 0:08:41for example, or harassment.
0:08:41 > 0:08:45The abuse, discrimination and hate crimes that you have described
0:08:45 > 0:08:49are clearly appalling, and we obviously note
0:08:49 > 0:08:54what Ms Mludzinska said about this still being a minority,
0:08:54 > 0:08:58and it is welcomed that you had other support.
0:08:58 > 0:09:01Nevertheless, that minority abuse and hate crime
0:09:01 > 0:09:06persecution is still appalling and deeply un-British, and should
0:09:06 > 0:09:09have no place in our country.
0:09:09 > 0:09:11One committee member questioned the link
0:09:11 > 0:09:13between Brexit and hate crime.
0:09:13 > 0:09:16What do you think might have happened if the vote
0:09:16 > 0:09:18had gone the other way?
0:09:18 > 0:09:21Who knows?
0:09:21 > 0:09:24Well, you see, that is quite an important question,
0:09:24 > 0:09:28because I think what is difficult is attributing that spike
0:09:28 > 0:09:33in hate crime to the way that the referendum went.
0:09:33 > 0:09:36And the sort of people who commit these hate crimes,
0:09:36 > 0:09:39let's admit it, are morons.
0:09:39 > 0:09:42It is helpful just to stick to the facts, in terms
0:09:42 > 0:09:45of what actually is the cause of these hate crimes,
0:09:45 > 0:09:48rather than just attribute it to because people voted
0:09:48 > 0:09:50in a certain way.
0:09:50 > 0:09:52Well, I think we have talked about...
0:09:52 > 0:09:54Sorry, if I may reply.
0:09:54 > 0:09:58But we have talked about that, and I think, personally, I think...
0:09:58 > 0:10:01Because, Chair, you asked about what is likely to happen
0:10:01 > 0:10:05in the future and what is happening now, and I think that there
0:10:05 > 0:10:09may be another point where things get worse,
0:10:09 > 0:10:13when those people who, for whatever reason,
0:10:13 > 0:10:17thought everything would be resolved by Brexit, their own particular
0:10:17 > 0:10:23situations might improve and so on, when they find that doesn't
0:10:23 > 0:10:26miraculously happen.
0:10:26 > 0:10:29Tim Loughton told her that one aim of the committee enquiry was
0:10:29 > 0:10:33to make sure that didn't happen.
0:10:33 > 0:10:36Plans to close dozens of local tax offices should be immediately
0:10:36 > 0:10:40scrapped after a spending watchdog found costs have spiralled,
0:10:40 > 0:10:43according to the Shadow Chancellor, John McDonnell.
0:10:43 > 0:10:46His comments came after the National Audit Office, the NAO,
0:10:46 > 0:10:50revealed that HMRC has had to rethink its plans after
0:10:50 > 0:10:54underestimating the costs and scale of disruption involved.
0:10:54 > 0:10:57But called to the Commons, a Treasury Minister
0:10:57 > 0:10:59defended the scheme.
0:10:59 > 0:11:03The size of HMRC's estate has been reducing since 2006,
0:11:03 > 0:11:06and the NAO report published today shows that HMRC have made some
0:11:06 > 0:11:12effective changes since 2010 whilst reducing staff numbers by a quarter
0:11:12 > 0:11:16and saving the taxpayer over ?350 million.
0:11:16 > 0:11:19But HMRC wants to keep up the momentum to provide better
0:11:19 > 0:11:22service at a reduced cost.
0:11:22 > 0:11:24As they announced in 2015, that means taking forward big
0:11:24 > 0:11:28reforms to how the estate works, which will see over 170 small
0:11:28 > 0:11:32offices consolidated into 13 larger regional offices,
0:11:32 > 0:11:35an approach which is used across government.
0:11:35 > 0:11:38This brings with it a whole range of advantages,
0:11:38 > 0:11:41from efficiently sharing resources and quality digital infrastructure,
0:11:41 > 0:11:45to better support and career opportunities for the staff who can
0:11:45 > 0:11:49more effectively share expertise.
0:11:49 > 0:11:52And for the public, what this really means is a better,
0:11:52 > 0:11:54more modern service, run by fewer staff, costing around
0:11:54 > 0:11:59?80 million a year less by the time these changes take effect.
0:11:59 > 0:12:01She had accepted the costs of the programme
0:12:01 > 0:12:03were likely to be higher than forecast.
0:12:03 > 0:12:06There are a wide range of factors behind that,
0:12:06 > 0:12:08from rising property costs and changes made to the programme,
0:12:08 > 0:12:11for example to help staff adjust and to ensure a smooth transition
0:12:11 > 0:12:14for customers, and so the programme costs are of course
0:12:14 > 0:12:16updated to reflect this.
0:12:16 > 0:12:20I therefore thank the NAO for their timely report.
0:12:20 > 0:12:23But this strategy to modernise the service HMRC provides
0:12:23 > 0:12:27to taxpayers is the right approach and reflects the way taxpayers
0:12:27 > 0:12:29now interact with it.
0:12:29 > 0:12:32It is a plan to say goodbye to the days of manual processing
0:12:32 > 0:12:35of tax, that can be done more easily with today's technology.
0:12:35 > 0:12:42But Labour argued the real situation was much worse.
0:12:42 > 0:12:44In reality, Mr Speaker, the report is damning
0:12:44 > 0:12:46of the Government's plans to close 170 offices.
0:12:46 > 0:12:49We have warned consistently on this side that the Government's proposals
0:12:49 > 0:12:51will have a detrimental impact on HMRC's ability to provide advice
0:12:51 > 0:12:54and also to tackle tax evasion and tax avoidance.
0:12:54 > 0:12:57The NAO report has confirmed our fears.
0:12:57 > 0:13:02First of all, it calls the original office closure plan unrealistic.
0:13:02 > 0:13:05The estimates of the costs of the moving increase by 22%,
0:13:05 > 0:13:08?600 million extra.
0:13:08 > 0:13:11It forecasts a further 5000 job losses.
0:13:11 > 0:13:13It finds that the costs of redundancy and travel
0:13:13 > 0:13:17have tripled, from 17 million to 54 million.
0:13:17 > 0:13:21It says HMRC cannot demonstrate how its services can be improved.
0:13:21 > 0:13:24It has not even produced a clear programme business case
0:13:24 > 0:13:26for the planned closures.
0:13:26 > 0:13:30As we predicted, this is an emerging disaster.
0:13:30 > 0:13:34Given how clear and stark the warnings actually are,
0:13:34 > 0:13:38would it not simply make more sense to pause this,
0:13:38 > 0:13:41rip it up and start again?
0:13:41 > 0:13:43Hear, hear!
0:13:43 > 0:13:44Minister.
0:13:44 > 0:13:46No, I don't think that's right.
0:13:46 > 0:13:48I really can't agree with that.
0:13:48 > 0:13:50Because the reasons that are driving this programme,
0:13:50 > 0:13:53the reasons that we want to transform HMRC into the most modern
0:13:53 > 0:13:59digital tax authority in the world, all still stand.
0:13:59 > 0:14:02And it is right that of course, in any major programme, and
0:14:02 > 0:14:05there are a number of them running at the same time, we have always
0:14:05 > 0:14:08been open, this is an ambitious transformation programme, and it is
0:14:08 > 0:14:11right that it is looked at regularly, and of course,
0:14:11 > 0:14:14HMRC will respond in detail to the NAO's report.
0:14:14 > 0:14:18But the principle that drives this stands absolutely good,
0:14:18 > 0:14:20for all the reasons I've talked about.
0:14:20 > 0:14:24Better for customers, better for staff, better for the taxpayer.
0:14:24 > 0:14:26Jane Ellison.
0:14:26 > 0:14:28You're watching Tuesday in Parliament,
0:14:28 > 0:14:35with me, Alicia McCarthy.
0:14:35 > 0:14:39Financial jobs in London are bound to be affected by Brexit but a lack
0:14:39 > 0:14:43of knowledge about the Government's plans will make the situation worse.
0:14:43 > 0:14:46That was the message from leading financiers, including the head
0:14:46 > 0:14:48of the London Stock Exchange.
0:14:48 > 0:14:51They called for the City to have its own transitional arrangements,
0:14:51 > 0:14:55known as grandfathering, meaning new rules wouldn't apply
0:14:55 > 0:15:00to the City institutions for around five years.
0:15:00 > 0:15:01There are four periods.
0:15:01 > 0:15:06There is a period between now and triggering Article 50,
0:15:06 > 0:15:10where it would be helpful to get an idea as to what policy objectives
0:15:10 > 0:15:14are in the negotiation, there's the period during Article
0:15:14 > 0:15:1750, where there's the possibility of having a discussion
0:15:17 > 0:15:22with our counterparts in Europe as to the likelihood of,
0:15:22 > 0:15:24where is the common ground in relation to where
0:15:24 > 0:15:26we might get to?
0:15:26 > 0:15:32Then there's the period from the end of Article 50 to the new world,
0:15:32 > 0:15:35for however long that takes, the standstill that you described.
0:15:35 > 0:15:39And then there's the implementation period for whatever is agreed
0:15:39 > 0:15:41for the future relationship because it will take
0:15:41 > 0:15:43time to configure.
0:15:43 > 0:15:48An economic impact, in terms of, of course, the jobs that
0:15:48 > 0:15:50power this industry, and I'm not just talking, of course,
0:15:50 > 0:15:56about the clearing jobs themselves, which number into the few thousands,
0:15:56 > 0:15:59but the very large array of ancillary functions,
0:15:59 > 0:16:03whether it's syndications, trading, treasury management,
0:16:03 > 0:16:07middle office, back office, risk management, software,
0:16:07 > 0:16:13which range into far more than just a few thousands of jobs,
0:16:13 > 0:16:15would then start migrating.
0:16:15 > 0:16:19And last but not least, Mr Chairman, we are talking
0:16:19 > 0:16:23here about the largest financial asset classes in the world.
0:16:23 > 0:16:27We are talking about numbers that are almost unimaginably large,
0:16:27 > 0:16:31hundreds of trillions, that would have the quickly be
0:16:31 > 0:16:33innovated, migrated.
0:16:33 > 0:16:38The systemic or potential systemic impact normally would have
0:16:38 > 0:16:42reverberation if mishandled, if handled too quickly without,
0:16:42 > 0:16:46of course, the benefit of anticipation and preparation.
0:16:46 > 0:16:49For some of the American banks, for example, Citibank,
0:16:49 > 0:16:54have a licensed bank in Ireland.
0:16:54 > 0:16:58Some of the other banks already have operations in the Continent.
0:16:58 > 0:17:01But the majority of them have their principal operation
0:17:01 > 0:17:04in London and passport into the whole of Europe from here.
0:17:04 > 0:17:07They are looking at how they would replace that
0:17:07 > 0:17:12by setting up operations, regulated operations, in Europe.
0:17:12 > 0:17:15And the challenge they've got, more than firms like us that already
0:17:15 > 0:17:18have operations in Europe, is they would need to go and get
0:17:18 > 0:17:20the licenses that they don't have because today they rely
0:17:20 > 0:17:24on passporting from their UK licence.
0:17:24 > 0:17:27I'm sorry, just to clarify, your point is, to do that,
0:17:27 > 0:17:29they would leave London?
0:17:29 > 0:17:30Yes.
0:17:30 > 0:17:32They would need to leave London?
0:17:32 > 0:17:35And they would need to relocate at least part of their activities
0:17:35 > 0:17:39in order to secure that licence?
0:17:39 > 0:17:44That's exactly right, and part of the uncertainty
0:17:44 > 0:17:48and the planning, if you like, is how much would you have to move?
0:17:48 > 0:17:51Clearly, you would need to move the front part of the business,
0:17:51 > 0:17:54the relationship managers that talk to customers, because
0:17:54 > 0:17:55that is the line.
0:17:55 > 0:17:59But the question would be whether the negotiation would allow
0:17:59 > 0:18:02the middle and back office the settlement, the risk management,
0:18:02 > 0:18:05the accounting and so on, to be done outside of EU 27
0:18:05 > 0:18:08or whether EU 27 is part of the negotiations, say, no,
0:18:08 > 0:18:11if we are going to give you a license, we want
0:18:11 > 0:18:12everything in our country.
0:18:12 > 0:18:17That's apolitical negotiation as much as a technical negotiation.
0:18:17 > 0:18:20Are there any scenarios after Brexit where you could expand your
0:18:20 > 0:18:22operation in London?
0:18:22 > 0:18:25I think there are scenarios where the business can grow, certainly.
0:18:25 > 0:18:27And I think, particularly given the attractiveness
0:18:27 > 0:18:30of the United Kingdom in which to do business, there's no
0:18:30 > 0:18:31reason why we wouldn't do.
0:18:31 > 0:18:35I mean, we happened to be a German company but we have a significant
0:18:35 > 0:18:38and growing business here in the UK because we can find talent
0:18:38 > 0:18:39and the right environment.
0:18:39 > 0:18:41So there's no reason why that shouldn't continue.
0:18:41 > 0:18:44I mean, the freedom of finding the right people, putting
0:18:44 > 0:18:46them in the right place, a good regulatory environment,
0:18:46 > 0:18:49a predictable tax regime, all of that makes the UK a very,
0:18:49 > 0:18:51very attractive place to do business.
0:18:51 > 0:18:55But Elizabeth Corley said complexity in doing business could chip away
0:18:55 > 0:18:59at that attractiveness.
0:18:59 > 0:19:01The Foreign Secretary, Boris Johnson, who's just
0:19:01 > 0:19:05returned from Washington, says there's "a huge
0:19:05 > 0:19:07"fund of goodwill for the UK on Capitol Hill".
0:19:07 > 0:19:11Mr Johnson held talks with some of Donald Trump's top aides
0:19:11 > 0:19:14and leading Republicans and told MPs there was "a very large measure
0:19:14 > 0:19:16"of understanding that now is the time to do
0:19:17 > 0:19:19"a free trade deal".
0:19:19 > 0:19:22His comments came during Question Time, when MPs tried
0:19:22 > 0:19:26to tease out details about the talks and the UK's future relationship
0:19:26 > 0:19:29with Donald Trump's administration.
0:19:29 > 0:19:32In relation to talks with the incoming US administration,
0:19:32 > 0:19:37what talks specifically with regard to security and trade did my right
0:19:37 > 0:19:41honourable friend have with congressional leaders?
0:19:41 > 0:19:45I'm grateful.
0:19:45 > 0:19:49I have to say to the House that there was a huge fund
0:19:49 > 0:19:57of goodwill for the United Kingdom on Capitol Hill and a very large
0:19:57 > 0:20:02measure of understanding that now is the time to do a free trade deal.
0:20:02 > 0:20:05They want to do it, they want to do it fast,
0:20:05 > 0:20:08and that understanding was most vivid and most urgent on the part
0:20:08 > 0:20:11of the incoming administration.
0:20:11 > 0:20:13On Sunday, the Foreign Secretary met with Steve Bannon,
0:20:13 > 0:20:17Donald Trump's chief strategist, a man whose website is synonymous
0:20:17 > 0:20:21with anti-Semitism, racism, misogyny, homophobia,
0:20:21 > 0:20:25hero worship of Vladimir Putin and the promotion of extremist
0:20:25 > 0:20:28far-right movements across the world.
0:20:28 > 0:20:34Can I ask the Foreign Secretary, how did he and Mr Bannon get on?
0:20:34 > 0:20:41I don't wish to embarrass any member of the incoming administration
0:20:41 > 0:20:46by describing the friendliness or otherwise of our relations,
0:20:46 > 0:20:48but what I can say is that the conversations
0:20:48 > 0:20:51were genuinely extremely productive.
0:20:51 > 0:20:55There is a wide measure of agreement between the UK and the incoming
0:20:55 > 0:20:59administration about the way forward and we intend to work to build
0:21:00 > 0:21:02on those areas of agreement.
0:21:02 > 0:21:05May I ask the Foreign Secretary what agreement there will be
0:21:05 > 0:21:08on policy towards Russia between the British government
0:21:08 > 0:21:11and the new administration, given the new administration's
0:21:11 > 0:21:17indebtedness to President Putin through the leaking and hacking
0:21:17 > 0:21:20of the Democratic National Committee and Hillary Clinton's
0:21:20 > 0:21:23campaign chairman's e-mails?
0:21:23 > 0:21:24Well said!
0:21:24 > 0:21:31May I first of all say I make no comment on the efficacy,
0:21:31 > 0:21:35the electoral efficacy, of the hacking of the DNC e-mails
0:21:35 > 0:21:40except to say that it's pretty clear that it did come from the Russians.
0:21:40 > 0:21:45And the point that we've made to the incoming administration
0:21:45 > 0:21:53and indeed on Capitol Hill is just this, that, as I said earlier on,
0:21:53 > 0:21:58we do think that the Russian state, the Putin Kremlin, is up
0:21:58 > 0:22:05to all sorts of very dirty tricks, such as cyber warfare,
0:22:05 > 0:22:09but it would be folly for us further to demonise Russia or to push
0:22:09 > 0:22:11Russia into a corner.
0:22:11 > 0:22:15So a twin track strategy of engagement and vigilance
0:22:15 > 0:22:17is what is required.
0:22:17 > 0:22:20The Foreign Secretary, Boris Johnson.
0:22:20 > 0:22:23They've endured months of misery and there's no end in sight
0:22:23 > 0:22:26for commuters on Southern rail.
0:22:26 > 0:22:29The latest action by staff hit on Tuesday, with more scheduled
0:22:29 > 0:22:31for later this week.
0:22:31 > 0:22:34Southern wants to bring in driver-only operated trains,
0:22:34 > 0:22:36where the driver rather than the conductor opens
0:22:36 > 0:22:38and closes the doors.
0:22:38 > 0:22:41But unions have safety fears and, so far, there's little sign
0:22:41 > 0:22:44of an agreement between Southern or its parent company,
0:22:44 > 0:22:47Govia, and the unions.
0:22:47 > 0:22:51Months of action have led to reports of commuter misery and even of job
0:22:51 > 0:22:54losses as people fail to get to work.
0:22:54 > 0:22:58In the Lords, one peer had clearly had enough.
0:22:58 > 0:23:01There is chaos on our railways and it's estimated that the Southern
0:23:01 > 0:23:06dispute alone has cost the government ?65 million
0:23:06 > 0:23:09and counting with huge costs, of course, to the economy
0:23:09 > 0:23:10as a whole.
0:23:10 > 0:23:14But it's the passengers who are taking the real pain on this
0:23:14 > 0:23:17with their daily struggle to get to work.
0:23:17 > 0:23:21Does the noble Lord, the Minister, accept that this simply cannot be
0:23:21 > 0:23:27allowed to go on and that things are now so bad that it would be very
0:23:27 > 0:23:32difficult indeed to restore trust between Southern and its workforce
0:23:32 > 0:23:36and that therefore Southern should be relieved of their franchise?
0:23:36 > 0:23:40And I would suggest that it should be passed to Transport for London,
0:23:40 > 0:23:50who have a very good proven track record.
0:23:51 > 0:23:54I'm sure the noble lady can read into the reaction of your lordship's
0:23:54 > 0:23:57House on her final comment.
0:23:57 > 0:23:59Let's put this dispute in the context.
0:23:59 > 0:24:01There is no basis left for this dispute.
0:24:01 > 0:24:05First of all, the conductors, who have become train supervisors.
0:24:05 > 0:24:10222 of the 223 have signed new contracts.
0:24:10 > 0:24:13The one remaining one is leaving, so that's 100% compliance.
0:24:13 > 0:24:16As far as the drivers are concerned, they were concerned rightly,
0:24:16 > 0:24:18as we all are, about safety on the railways.
0:24:18 > 0:24:23Well, the Office of Rail and Road, the actual independent office,
0:24:23 > 0:24:27has adjudicated that driver-only operated trains are safe,
0:24:27 > 0:24:30yes, in the context of the Southern network.
0:24:30 > 0:24:33They put out a report on the 5th of January.
0:24:33 > 0:24:36So I say to the unions, as the Secretary of State has done,
0:24:36 > 0:24:39not on one occasion but twice, come and meet him, call off
0:24:39 > 0:24:40the dispute and let's resolve this dispute.
0:24:40 > 0:24:42It's gone on far too long.
0:24:42 > 0:24:46Could the noble Lord, the Minister, say what financial penalties have
0:24:46 > 0:24:50so far been incurred by the train operator Govia as a result of first
0:24:50 > 0:24:55poor performance and second days of industrial action?
0:24:55 > 0:24:59Because, if no financial penalties have been incurred by the operator,
0:24:59 > 0:25:02then what is the incentive first for the train operator to address
0:25:02 > 0:25:06issues of poor performance and second to resolve the current
0:25:06 > 0:25:09industrial relations issues if neither matter
0:25:09 > 0:25:11is affecting them financially?
0:25:11 > 0:25:14As I've said, the government has stood behind the particular company
0:25:14 > 0:25:17in ensuring that they can provide compensation where necessary,
0:25:17 > 0:25:20and we've called and implored upon both the franchisee
0:25:20 > 0:25:23and the unions to come together to resolve this dispute.
0:25:23 > 0:25:25The Transport Minister, Lord Ahmad.
0:25:25 > 0:25:29And that's it from me for now, but do join me at the same time
0:25:29 > 0:25:31tomorrow for another round-up of the best of the day
0:25:31 > 0:25:33here at Westminster, including the highlights
0:25:33 > 0:25:35from Prime Minister's Questions.
0:25:35 > 0:25:42But until then, from me, Alicia McCarthy, goodbye.