:00:23. > :00:26.Good morning and welcome to AMPM. One of our regular Westminster
:00:26. > :00:29.happy hours for you today and all the news from the corridors of
:00:30. > :00:33.power here in Cardiff Bay as well. I say happy hour, but the breaking
:00:33. > :00:37.news this morning is that the UK is in recession for the second time in
:00:37. > :00:40.three years. We'll be off to the Commons shortly for Welsh Questions
:00:40. > :00:43.and that will be followed by Prime Minister's Questions. David Cameron
:00:43. > :00:45.is expected to come under pressure over the future of the Culture
:00:45. > :00:50.Secretary, Jeremy Hunt. He's again defended himself against calls for
:00:50. > :00:54.his resignation over contacts with Rupert Murdoch's media empire. And
:00:54. > :00:57.news that the UK is in recession again will surely feature. Jeremy
:00:57. > :01:00.Hunt may be the only man in the country happy about that, if it
:01:00. > :01:03.deflects some attention away from him. All that to come, but before
:01:03. > :01:13.we whisk off to Westminster, a quick chat with guests, Labour's
:01:13. > :01:14.
:01:14. > :01:20.Mark Drakeford and Angela Burns from the Welsh Conservatives.
:01:20. > :01:24.Your party has experience of being in recession in Government. The
:01:24. > :01:30.news this morning is a double-dip recession. What is your reaction?
:01:30. > :01:34.Nobody wants to be in a recession. It is not in anybody's interests.
:01:35. > :01:42.The Labour Party is not taking any pleasure out of it. It is bad news.
:01:42. > :01:47.The economy is bumping along the bottom. Not many people predicted
:01:47. > :01:52.we would be below the 0 % but if you look at the construction
:01:52. > :01:55.industry which has been badly hit, the construction industry relies
:01:56. > :02:00.heavily on public sector contracts and those have dried up completely.
:02:00. > :02:04.But if you look at tax revenues, that is where I think the real clue
:02:04. > :02:09.was. The Chancellor's tax revenues are way below what he was
:02:09. > :02:14.predicting weeks ago. Thatcher's tells you there is simply no
:02:14. > :02:18.economic activity going on out there and for me, this brings us
:02:18. > :02:23.back to the fundamental point, you can't cut your way out of recession.
:02:23. > :02:32.You have to have a real growth strategy and that is what this
:02:32. > :02:42.Chancellor has failed to deliver. Quite a balanced interpretation. I
:02:42. > :02:51.am sure you won't just blame Labour for this mess. We have been looking
:02:51. > :02:58.at the upcoming elections in France. The markets were taking fright at
:02:58. > :03:03.the prospect of a different President in France because the
:03:03. > :03:07.economy that he is advocating is one of spending and France not
:03:07. > :03:13.following the austerity measures that they have them and trying to
:03:13. > :03:18.spend their way out. The markets don't feel that is right. It is
:03:18. > :03:24.awful for our country to be in a double-dip recession but we have
:03:24. > :03:33.retained our very important credit ratings. The markets still have
:03:33. > :03:37.confidence. We are pretty much the last man standing. I would not be
:03:37. > :03:47.too keen to knock the Chancellor's plans because they have held up
:03:47. > :03:49.
:03:49. > :03:52.very well for the UK. The markets have taken fright at the prospect
:03:52. > :04:02.of a left-wing socialist victory in France because he was to spend his
:04:02. > :04:07.way out but the alternative is that cutting your way out is not working.
:04:07. > :04:11.The markets are frightened about uncertainty. With the prospect of a
:04:11. > :04:16.new Government in France, that is what is worrying them. Just like
:04:16. > :04:20.they are worried about the collapse of the Government in Holland. If
:04:20. > :04:26.you want to see where things are working in the Western world, you
:04:26. > :04:30.go to the United States of America which has had a good approach to
:04:30. > :04:34.this way they have growth in jobs and growth in the economy. Although
:04:34. > :04:42.they don't have a triple-A rating, there are still managing to run a
:04:42. > :04:52.very successful recovery. We will head over to the Commons now. Our
:04:52. > :04:55.
:04:55. > :05:00.parliamentary correspondent, David Cornock, is there. Good morning.
:05:00. > :05:06.Welsh questions will be under way in a moment. The first question
:05:06. > :05:11.will be from Stuart Andrew who will ask a question about the
:05:11. > :05:21.discussions Cheryl Gillan has had about marketing Wales as a
:05:21. > :05:28.
:05:28. > :05:33.destination for foreign business Just a little parliamentary
:05:33. > :05:38.business still to be got through before the speaker can get on with
:05:38. > :05:44.the main business of the day. Welsh questions followed by Prime
:05:44. > :05:54.Minister's Questions followed by the statement from Jeremy Hunt.
:05:54. > :05:56.
:05:56. > :06:01.Labour is calling on Jeremy Hunt to resign.
:06:01. > :06:04.I will answer questions 1 and 3 together. I have regular
:06:04. > :06:08.discussions with ministerial colleagues and others on marketing
:06:08. > :06:10.Wales as a destination for foreign business investment. The recent
:06:10. > :06:15.Welsh Affairs Committee report on inward investment in Wales
:06:15. > :06:24.highlighted a number of important issues and we are committed to
:06:24. > :06:27.joint working with the last Government. One of the best ways to
:06:27. > :06:32.improve foreign investment into Wales is for the UK and Welsh
:06:32. > :06:37.governments to work more closely together. Does my right honourable
:06:37. > :06:47.friend regret the fact that the Welsh business Minister is
:06:47. > :06:47.
:06:48. > :06:54.reluctant to do that. Co-operation between both governments is
:06:54. > :06:57.considered essential to marketing Wales. But as economic development
:06:57. > :07:01.is devolved and led by the Labour Government, I share his
:07:01. > :07:11.disappointment. I she his disappointment that the Business
:07:11. > :07:15.Minister would not give evidence to the Select Committee. The projects
:07:15. > :07:25.into Wales have diminished over the years and we need to get that back
:07:25. > :07:26.
:07:26. > :07:36.up to compete effectively. Does she agree with me that it is right to
:07:36. > :07:36.
:07:36. > :07:41.investigate opportunities in the emerging markets. The Prime
:07:41. > :07:51.Minister himself has said he wants to link this country to the fastest
:07:51. > :07:56.
:07:56. > :08:02.growing parts of the world. That is why I am pleased that we have now
:08:02. > :08:12.joined up with the last Government and the have offered at least one
:08:12. > :08:13.
:08:13. > :08:18.investment adviser to work in at the last Government offices. -- the
:08:18. > :08:26.Welsh Government offices. I am sure we can get the two governments
:08:26. > :08:30.working together in the interests of Wales. Could it transport links
:08:30. > :08:35.-- could it transport links are essential. What discussions has she
:08:35. > :08:44.had with the First Minister and the Welsh Government on improving links
:08:45. > :08:53.with Cardiff airport? I have constant discussions with the First
:08:53. > :08:58.Minister and the last Government. We have discussed the links and
:08:58. > :09:01.there has been discussion about Cardiff airport. I have invited the
:09:01. > :09:06.owners of Cardiff airport to meet with me shortly because I have been
:09:06. > :09:16.concerned about some of the report I've heard in the press. We should
:09:16. > :09:20.be trying to talk Cardiff airport up not talk it down. I welcome the
:09:20. > :09:26.announcement by the Labour Welsh Government that the steel company
:09:26. > :09:30.will be investing �800 million in Wales but their bosses have
:09:30. > :09:34.repeatedly said that the prices they have to pay for energy in the
:09:34. > :09:38.UK are simply not competitive when compared to what industry pays
:09:38. > :09:42.elsewhere. What discussions has she had with the Energy Secretary and
:09:42. > :09:46.energy companies to secure a better deal on energy prices for heavy
:09:46. > :09:53.industry and to provide an incentive for companies to invest
:09:53. > :10:01.in Wales. It was one of the first things I did when I pop -- 1 was
:10:01. > :10:04.appointed, I took Vince Cable to discuss the energy prices and all
:10:04. > :10:12.the departments have been focused on the industry's because we want
:10:12. > :10:15.to make sure that there are good manufacturing jobs in the future. I
:10:15. > :10:20.have read the press release from the Welsh Government and the First
:10:20. > :10:26.Minister and he says he was told at a meeting in India that �800
:10:26. > :10:29.million has been approved over the next five years for investment and
:10:29. > :10:33.I am looking forward to seeing the detail on that because it seems to
:10:33. > :10:43.be one of those general announcements without too much
:10:43. > :10:47.
:10:47. > :10:51.detail attached to it. As a result of the budget, the Welsh Government
:10:51. > :10:56.will benefit from an additional �11.7 billion over the spending
:10:56. > :11:06.review period. It will have received nearly �500 million in
:11:06. > :11:14.
:11:14. > :11:20.additional funding since the spending review of 2010.
:11:20. > :11:23.caravan Tax has hit thousands of hard-working families in Wales.
:11:23. > :11:33.Will he spate of the Chancellor and getting to scrap the caravan Tax
:11:33. > :11:33.
:11:33. > :11:40.and not sit on his hands? The right honourable gentleman should not be
:11:40. > :11:44.get so I rated. The Government recognises the importance of the
:11:44. > :11:54.holiday park sector to the tourism industry in Wales and the economy
:11:54. > :12:00.
:12:00. > :12:03.and was as a whole. -- the economy in Wales as a whole. Can you
:12:03. > :12:06.confirm that although there are 14 Government departments over the
:12:06. > :12:11.next four years that will see reductions in spending, spending in
:12:11. > :12:15.Wales increases year-on-year despite the fact that the Welsh
:12:15. > :12:21.Assembly Government and has spent �385 million last year whilst
:12:21. > :12:29.cutting health spending in Wales. Absolutely. The reduction in the
:12:29. > :12:32.Welsh health budget is a matter of shame for the Welsh Government.
:12:33. > :12:40.There will have had an additional �500 million since the spending
:12:40. > :12:44.review in 2010. Is it fair that Welsh churches, charities,
:12:44. > :12:51.pensioners and almost everybody else pay more taxes so that
:12:51. > :12:54.millionaires each day for �1,000 less? That is a strange rhetorical
:12:54. > :13:02.question but he will know that the reduction in the top rate of tax
:13:02. > :13:06.will not take effect until the end of the public spending freeze. The
:13:06. > :13:12.last Government did not see it fit to increase the rate of tax until
:13:12. > :13:18.weeks before the last budget. amazed he is not ashamed at the
:13:18. > :13:21.impact on some of the most vulnerable in our society. Can we
:13:21. > :13:26.in Wales apologised to the Secretary of State. We used to
:13:26. > :13:34.think she was on her own at sea in the Cabinet but now they are all at
:13:34. > :13:40.sea together. At least Wales has a Labour Government to give us some
:13:40. > :13:42.protection from this incompetence. At least Wales can reject this
:13:42. > :13:52.disastrous budget by voting Labour in the council elections next
:13:52. > :13:54.
:13:54. > :13:59.Thursday. I am still waiting for the question. Does the Minister
:13:59. > :14:02.agree that with a new law making powers and a �15 million budget,
:14:02. > :14:07.the Welsh Assembly Government has both the tools and the money to
:14:07. > :14:11.make a real and lasting difference in Wales? Yes, indeed. It is
:14:11. > :14:14.vitally important that the Welsh Assembly Government should work
:14:14. > :14:20.closely with the Government here in Westminster for the good of the
:14:20. > :14:30.people of Wales and I hope we will be seeing a far more joined-up
:14:30. > :14:37.
:14:37. > :14:41.approach from the Welsh Assembly Government in this regard. No. Four.
:14:41. > :14:45.We are committed to looking at how we can provide these allowances
:14:45. > :14:55.elsewhere but the Welsh Government must develop strong and robust
:14:55. > :14:58.
:14:58. > :15:02.business cases. Plans fall in motor industry complex are now at a
:15:02. > :15:05.critical juncture. We need to know if capital allowances can be
:15:05. > :15:11.delivered or if other tax treatments are a better prospect.
:15:11. > :15:21.Can I press her for a meeting with developments so that we can thrash
:15:21. > :15:22.
:15:22. > :15:26.Can I just say that the honourable gentleman has worked tirelessly to
:15:26. > :15:31.develop these proposals and I really do congratulate him on that.
:15:31. > :15:36.We have met on other occasions and I have written to him again today.
:15:36. > :15:40.I have said that I am very willing to try to secure a meeting with the
:15:40. > :15:44.Chief Secretary to the Treasury. Can I just also say to him that,
:15:44. > :15:48.without a business case, the Treasury cannot make decisions on
:15:48. > :15:52.further enhanced capital allowances and, therefore, I would encourage
:15:52. > :16:00.and to discuss this with the Welsh government as well as with our
:16:00. > :16:06.government. With permission, I will answer questions five and eight
:16:06. > :16:10.together. My honourable friend continues to have regular
:16:10. > :16:12.discussions with ministerial colleagues, Wells government
:16:13. > :16:20.ministers and other interested parties on the funding of broadband
:16:20. > :16:26.in Wales. May I congratulate him on his part in securing �57 million
:16:26. > :16:29.for Wales and the broadband provision for Cardiff? Turning to
:16:30. > :16:36.broadband in rural areas, does the Minister should have frustrations
:16:36. > :16:39.of many of my constituents at the speed with which this is being
:16:39. > :16:45.delivered in Wales when compared with authorities such as Cornwall,
:16:45. > :16:50.which are really speeding ahead? my honourable friend says, the
:16:50. > :16:57.Government has made a total of �56.9 million available to bring
:16:57. > :17:00.faster broadband to Wales. The Welsh government is working on how
:17:00. > :17:03.best to employ the funding but we are looking to the Welsh government
:17:03. > :17:07.to make an announcement as to its contribution to speed the process.
:17:07. > :17:13.I am sure that my honourable friend will be pleased that the
:17:13. > :17:19.announcement by BT that some rural communities will have faster access
:17:19. > :17:22.by this summer, including Aberystwyth. The South Wales
:17:22. > :17:30.Chamber of Commerce has called for more ambitious targets for
:17:30. > :17:34.broadband speeds for 2015 at 50 megabytes per second, from the
:17:34. > :17:38.present targets of 30. What is the government doing here to achieve
:17:39. > :17:42.such a target, which would clearly be beneficial for business? Indeed,
:17:42. > :17:46.it would be beneficial, Mr Speaker, and I am sure that the honourable
:17:46. > :17:51.gentleman will recall that in the Budget as some of �12 million was
:17:51. > :17:56.made available to help transform Cardiff into a Super connected city,
:17:56. > :18:03.which should result in speeds of between 60 megabytes and 100
:18:03. > :18:10.megabytes per second. Cardiff is not Wales, though some people might
:18:10. > :18:15.be under that misapprehension. Countries such as Finland and
:18:15. > :18:19.mortar have introduced a universal service obligation on Internet
:18:19. > :18:23.coverage to ensure that everybody has equal access to the internet
:18:23. > :18:28.and its advantages, irrespective of location. Will the government might
:18:28. > :18:32.look into this and look into it in time for the next communication
:18:32. > :18:38.bill. Perhaps it is something that the Welsh government can do under
:18:38. > :18:42.the Welsh -- the government of Wales Act. He referred specifically
:18:42. > :18:46.to the South Wales Chamber of Commerce. It is the ambition of
:18:46. > :18:49.this Government to ensure that his super-fast broadband is rolled out
:18:49. > :18:55.throughout the United Kingdom by the end of this Parliament. At the
:18:55. > :18:59.moment, we are on track. Broadband suppliers have shown a marked
:18:59. > :19:03.reluctance to invest in Wales. Does my honourable friend agree with me
:19:03. > :19:07.that it is important that the people of Wales have the benefit of
:19:07. > :19:10.new technology and that perhaps the Welsh Assembly might use some of
:19:10. > :19:16.its vast underspend to invest in Wales so that everyone has the
:19:16. > :19:26.benefit of broadband? Indeed. As I said in reply to the honourable
:19:26. > :19:27.
:19:27. > :19:36.member for Kennedy idiom, -- 4 Ceredigion, we are waiting for
:19:36. > :19:40.their commitment in financial terms. Economic growth is a key priority
:19:40. > :19:43.for this Government and I have regular discussions with
:19:43. > :19:47.ministerial colleagues on ways to encourage economic growth in Wales.
:19:47. > :19:51.Yesterday, I met with a business advisory group and herds directly
:19:51. > :19:57.from members how this Government's growth policies are helping
:19:57. > :20:02.businesses in Wales to face the current economic challenges. Does
:20:02. > :20:07.the Secretary of State agree that the fact that the recent Budget is
:20:07. > :20:16.taking 95,000 people out of tax altogether in Wales is a big boost
:20:16. > :20:20.for business? I agree entirely with my honourable friend, and it must
:20:21. > :20:25.be very good for those people that we have taken out of tax altogether
:20:25. > :20:29.and the lower paid workers who will benefit from the changes, because,
:20:29. > :20:36.indeed, it will put money directly back in their pockets rather better
:20:36. > :20:46.than Welsh Labour done in Cardiff Bay, under whose auspices council
:20:46. > :20:48.
:20:48. > :20:52.tax has doubled in Wales. Considering there is a direct link
:20:52. > :20:56.between money in people's pockets and spending, how will be pressing
:20:57. > :21:03.pay in the public sector encourage economic growth in the poorest
:21:03. > :21:10.parts of the UK? Mr Speaker, when it comes to local pay, our
:21:10. > :21:13.intention is to create a more flexible labour market that is more
:21:13. > :21:21.responsive to their challenging economic conditions that we face.
:21:21. > :21:26.We want to encourage more private sector growth. The Secretary of
:21:26. > :21:34.State things that this Government is interested in growth, if she
:21:34. > :21:39.does, she is living in cloud- cuckoo-land. The Chancellor's
:21:39. > :21:44.excessive intention of cutting too deep and too fast is taking us back
:21:44. > :21:51.into recession. I think that a day's news is disappointing but not
:21:51. > :21:57.totally unexpected. -- that today's news. Britain cannot be immune to
:21:57. > :22:02.what is happening on our doorstep. Italy, Ireland, Belgium, Holland
:22:02. > :22:07.and Portugal are already in recession. Since the Coalition took
:22:07. > :22:12.office, over 630,000 private sector jobs have been created, more than
:22:12. > :22:18.outstripping job losses in the public sector. Private sector
:22:18. > :22:27.employment in Wales rose by 12,000 between the third quarter of 2010
:22:27. > :22:30.and the same quarter in 2011. Speaker, my right honourable friend
:22:31. > :22:34.and I are working with the Secretary of State for Transport
:22:34. > :22:38.and Welsh ministers on the business case for electrocute it --
:22:38. > :22:48.electrification of the South Wales valley Lines. We expect to make an
:22:48. > :22:52.
:22:52. > :22:57.announcement in the summer. travel on a route that sometimes
:22:57. > :23:05.takes me through the constituency of the honourable member for the
:23:05. > :23:11.Vale of Glamorgan. Many routes link as far west as Swansea. We are all
:23:11. > :23:15.people from the valleys on connections from the valleys. Will
:23:15. > :23:19.his definition of South Wales be my definition, the definition of the
:23:19. > :23:24.people of the South Wales, because, when it comes to electrification,
:23:24. > :23:27.we are all in this together? indeed, we do recognise the
:23:27. > :23:31.importance of electrification of the South Wales valley Lines to the
:23:31. > :23:36.economy of the Cardiff City region and wider. The Chancellor did, of
:23:36. > :23:41.course,' electrification of those lines as a key infrastructure
:23:41. > :23:44.priority in the Budget. I was delighted that de Prime Minister
:23:44. > :23:54.confirmed his personal commitment when he visited Wales earlier this
:23:54. > :23:56.
:23:56. > :24:03.month. With permission, I will answer questions nine and 12
:24:03. > :24:08.together. Number 12 has been withdrawn. I am grateful to the
:24:08. > :24:11.Minister. My right honourable friend has regular discussions with
:24:11. > :24:20.the first minister about a range of transport issues that affect rails
:24:20. > :24:29.-- Wales, most recently last week. Has the Welsh Office than an impact
:24:29. > :24:34.study on the high-speed rail link on Wales. Has there been
:24:34. > :24:40.investigation of the possibility of a high-speed Wales? Indeed, I share
:24:40. > :24:45.the honourable gentleman's concerns about speeds on the line. These are
:24:45. > :24:52.matters that we discuss regularly with the Department for Transport,
:24:52. > :24:56.and will continue to do so. Can I ask the Minister what discussions
:24:56. > :25:04.he has had with the European Parliament about trans-European
:25:04. > :25:08.network funding to enhance the railways? Of we discuss what
:25:08. > :25:15.methods we can adopt in order to improve the funding regime for
:25:15. > :25:20.lines in Wales. We will be looking at funding that is available from
:25:20. > :25:24.the European Community. As we know, economic growth is one of the ways
:25:24. > :25:29.that we will improve the infrastructure of Wales. To improve
:25:29. > :25:33.that infrastructure, we need a modern railway. That means
:25:33. > :25:39.electrification as far as Swansea. Could the Minister tell me what
:25:39. > :25:43.impact assessment has been made of the effect on the commuter and
:25:44. > :25:46.holiday trade of rail electrification to Swansea?
:25:46. > :25:51.commend the honourable lady for her interest in this matter on behalf
:25:51. > :25:55.of a constituents to a man and I can assure her that we remain
:25:55. > :25:59.interested in the litigation of the line and are working closely with
:25:59. > :26:09.the Welsh Assembly Government to develop the business cases of far
:26:09. > :26:11.
:26:11. > :26:15.too many noisy private conversations are taking place.
:26:15. > :26:18.the Government recognises that businesses, individuals and
:26:18. > :26:24.families are struggling with the rising cost of fuel, particularly
:26:24. > :26:26.in rural areas. We have eased the burden on motors by approximately
:26:26. > :26:36.�4.5 billion by the abolition of the fuel duty escalator, the
:26:36. > :26:40.introduction of that stabiliser and by cutting fuel duty. Whilst
:26:40. > :26:47.welcoming the cut in fuel duty, the market price of oil Mack is too
:26:47. > :26:50.high, partly because of speculation. The USA is bringing in tough
:26:50. > :26:59.penalties for market manipulation. Will you put pressure on the big
:26:59. > :27:03.oil firms to cut prices at the pumps? As I said, the Government
:27:03. > :27:08.recognises the impact of the rising cost of fuel. However, it should be
:27:08. > :27:12.remembered that the duty increase it -- expected to take place in
:27:12. > :27:15.January has been deferred till August and we have cancelled the
:27:15. > :27:22.inflation increase that was planned for August. This means there will
:27:22. > :27:27.be just one inflationary increase this year. Could the Minister tell
:27:27. > :27:32.us the price of a litre of fuel this time last year and a price
:27:32. > :27:39.today? And would be increased be anything to do with the VAT rise
:27:39. > :27:49.that he voted for? The price in my constituency is approximately �1.40.
:27:49. > :27:51.
:27:51. > :27:55.Last year, I would be happy to write him -- right to him. I have
:27:55. > :27:58.regular discussions with ministerial colleagues and other
:27:58. > :28:07.organisations on a range of issues, including the aerospace industry in
:28:07. > :28:13.Wales. While the UK Government has taken a lead in establishing
:28:13. > :28:17.enterprise zones, be honest is now on the Welsh government to make
:28:17. > :28:23.sure -- the responsibility now lies with the Welsh government to make
:28:23. > :28:26.sure that its enterprise zones are a success. I think my honourable
:28:26. > :28:34.friend is absolutely right. As far as enterprise zones are concerned,
:28:34. > :28:39.a great deal depends on what the Welsh Labour government will do. I
:28:39. > :28:45.do say to him that I think it will be crucial to the UK securing work
:28:45. > :28:48.on the next generation of aircraft, because there are some 27,000 large
:28:48. > :28:52.aircraft worth three trillion dollars needed over the next 20
:28:52. > :28:57.years and around 7,000 new helicopters required within the
:28:57. > :29:00.next decade, and a huge potential future market in unmanned at the
:29:00. > :29:07.vehicles. I want to benefit from that demand in the aerospace
:29:07. > :29:12.business in Wales. Is it not the case that the success of the UK
:29:12. > :29:18.aerospace industry is because Government and Industry work
:29:18. > :29:26.together? And is it not the case that is saying that business
:29:26. > :29:31.succeed because Government gets out the the way is nonsense? Over this
:29:31. > :29:34.noise, Mr Speaker, I think that the honourable gentleman was suggesting
:29:34. > :29:39.that Government gets out of the way of business. Indeed, that is
:29:39. > :29:44.exactly what this Government is doing in reducing the bureaucracy
:29:44. > :29:47.that the last Labour government imposed on our industries and also
:29:47. > :29:57.reducing the rate of corporation tax so that our environment can be
:29:57. > :29:58.
:29:58. > :30:07.one of the most competitive in the G20. This is about the Budget and
:30:07. > :30:11.women. Hang on! Last night's budget was one of fairness and values, the
:30:11. > :30:16.we had to make some difficult decisions. If we are committed to
:30:16. > :30:26.ensuring that women all over the UK it play a full part in the economic
:30:26. > :30:30.
:30:30. > :30:34.In the last quarter, 4,000 women became unemployed. Can she tell me
:30:34. > :30:43.how many women in Wales will benefit from the reduction in
:30:43. > :30:47.taxation from 50 % to 45 %? Will that benefit women in Wales?
:30:47. > :30:55.Despite the recession, the employment rate for women remains
:30:55. > :30:59.historically high. 65.3 % now compared to 53 % in 1971.
:30:59. > :31:05.Employment has fallen more sharply for men during the recession so
:31:05. > :31:10.quite frankly, it will be expected to rise more quickly. This is the
:31:10. > :31:20.4th consecutive set of figures to show employment and economic
:31:20. > :31:25.
:31:25. > :31:34.inactivity rising in Wales. Questions to the Prime Minister.
:31:34. > :31:41.The whole House will join me in paying tribute to Sapper, Ray who
:31:41. > :31:44.died on Wednesday 18th April. He was described by all who served
:31:44. > :31:54.with him as his superb silver. His dedication and courage will never
:31:54. > :31:55.
:31:55. > :32:02.be forgotten. This morning, I had meetings with ministerial
:32:02. > :32:08.colleagues and I shall have further such meetings later today. I would
:32:08. > :32:17.like to associate myself with the Prime Minister's tribute. In doing
:32:17. > :32:27.so, I want to ask my right honourable friend if he will
:32:27. > :32:28.
:32:28. > :32:33.confirm that the actual case for withdrawal from Afghanistan should
:32:33. > :32:36.be about protecting our own soldiers. By the end of 2014, we
:32:36. > :32:42.won't have anything like the troop numbers we have now and they won't
:32:42. > :32:52.be in a combat role. Posts 2014 we believe in having a training role
:32:52. > :32:52.
:32:52. > :32:54.with the Afghan army. The speed of the reductions between now and the
:32:54. > :32:58.end of 2014 will be done in accordance with the conditions on
:32:58. > :33:04.the ground and what is right in terms of transition from Allied
:33:04. > :33:14.Control to Afghan control. Parliament el minds is the safety
:33:14. > :33:17.
:33:17. > :33:24.and security of our brave armed forces. Can I join the Prime
:33:24. > :33:31.Minister in paying tribute. He carried out his duties with the
:33:31. > :33:35.utmost courage and saved many lives. Our deepest condolences go to his
:33:35. > :33:40.family and friends. Today we had a catastrophic news that Britain is
:33:40. > :33:49.back in recession. I am sure the Prime Minister has spent the last
:33:49. > :33:55.24 hours thinking of an excuse so what is his excuse this time?
:33:55. > :34:01.are very disappointing figures. I don't seek to excuse them all try
:34:01. > :34:06.to explain them away and let me be absolutely clear. There is no
:34:06. > :34:12.complacency at: this Government in dealing with what is a very tough
:34:12. > :34:18.situation that has just got tougher. It is very difficult of recovering
:34:18. > :34:23.from the deepest recession in living memory a company as it was
:34:23. > :34:26.by a debt crisis. Our banks had too much debt, our households had too
:34:27. > :34:32.much debt and our Government had too much debt. We have to rebalance
:34:32. > :34:37.our economy. We need a bigger private sector and more investment.
:34:37. > :34:41.This is difficult work but we will stick with our plans and stick with
:34:42. > :34:50.the lower interest rates and do everything we can to boost
:34:50. > :34:57.competitiveness and jobs in our country. Typical of this arrogant
:34:57. > :35:04.Prime Minister. The reality is, this is a recession made by him and
:35:05. > :35:11.the Chancellor in Downing Street. Over the last 18 months, our
:35:11. > :35:16.economy has shrunk. This is now we slow recovery from a recession than
:35:16. > :35:21.the 1930s. The reality is that families and businesses are paying
:35:21. > :35:28.the price for his arrogance and complacency. Why doesn't he admit
:35:28. > :35:34.it? It is his catastrophic economic policy, cutting too far and too
:35:34. > :35:39.fast, that has landed us back in recession. There is not a single
:35:39. > :35:44.business organisation or international body that thinks
:35:44. > :35:48.these problems emerged in the last 24 months. The debt crisis has been
:35:48. > :35:52.long in the making. The failure to regulate our banks has been long in
:35:52. > :35:57.the making. The Government of overspending has been long in the
:35:57. > :36:01.making. This is a tough situation that the economy is in it but the
:36:01. > :36:05.one thing we must not do is to abandon public spending and deficit
:36:05. > :36:15.reduction plans because the solution to wait debt crisis cannot
:36:15. > :36:23.
:36:23. > :36:31.be more debt. -- to a debt crisis. No business organisation suggests
:36:31. > :36:36.the follow that course. It is all bluster. His plan has failed. That
:36:36. > :36:40.is the reality. They were the people who said that Britain was a
:36:40. > :36:45.safe haven. The Chancellor said on Monday and we are back in recession.
:36:45. > :36:53.He was the person who said we were out of the danger zone and this is
:36:53. > :37:02.what has happened. The complacent, arrogant, posh boys just don't get
:37:02. > :37:06.it. Let's turn from the economic disaster to the political disaster
:37:06. > :37:10.that is the Culture Secretary. On the evidence published yesterday,
:37:10. > :37:16.we know that throughout the time the culture secretary was supposed
:37:16. > :37:20.to be acting in an impartial manner, there was a constant flow of
:37:20. > :37:25.information to News Corporation about statements to be made in this
:37:25. > :37:31.House in advance, his private discussion with the regulators and
:37:31. > :37:35.his discussion with opposing parties. Having seen the one and 63
:37:35. > :37:38.pages published yesterday, is the Prime Minister trying to tell us
:37:39. > :37:48.that the Secretary of State was acting as he should have done in a
:37:49. > :37:49.
:37:49. > :37:59.transparent, impartial and fair manner? Let me finish off on the
:37:59. > :38:00.
:38:00. > :38:10.economy... Order! We will not let anyone forget who got us into this
:38:10. > :38:11.
:38:11. > :38:16.mess in the first place. More spending, more borrowing, more debt,
:38:16. > :38:24.that is what caused these problems. It cannot be the solution to these
:38:24. > :38:30.problems. Now let me turn to the Leveson Inquiry. I set up the
:38:30. > :38:35.Leveson Inquiry. The terms of reference were agreed by the leader
:38:35. > :38:38.of the Liberal Democrat Party and the leader of the Labour Party. I
:38:38. > :38:48.believe that to step in and try and prejudge that inquiry would be
:38:48. > :38:59.
:38:59. > :39:09.wrong. Let me be clear, Lord Justice Leveson has has made that
:39:09. > :39:11.
:39:11. > :39:16.precise point this morning. Let me read to the House what he has said.
:39:16. > :39:21.Let's hear what the Prime Minister has to say. He said this this
:39:21. > :39:28.morning. "it is very important to hear every side of the story before
:39:28. > :39:32.drawing conclusions. Although I have seen requests for other
:39:32. > :39:35.inquiries and investigations and of course I don't seek to her
:39:35. > :39:45.constrained Parliament, but it seems to me that the better course
:39:45. > :39:47.
:39:47. > :39:51.is to allow this inquiry to proceed". He should listen to the
:39:51. > :39:55.inquiry having set it up. Lord Justice Leveson is responsible for
:39:55. > :40:00.a lot of things but he is not responsible for the integrity of
:40:00. > :40:07.the Prime Minister's Government. In case he'd forgotten, that is his
:40:07. > :40:12.responsibility. It beggars belief that the Prime Minister can defend
:40:12. > :40:16.the Culture Secretary because he was not changing this, he was
:40:16. > :40:20.helping the bid by News Corporation. Two days before the statement to
:40:20. > :40:24.the House on 25th January, the Culture Secretary's office was not
:40:24. > :40:30.only colluding with News Corporation to provide information
:40:30. > :40:34.in advance, they were hatching a plan to ensure it would be game
:40:34. > :40:40.over for the Opposition to the bid. Does the Prime Minister really
:40:40. > :40:45.believe that is how a judge and his advisers are supposed to act?
:40:45. > :40:51.Leader of the Opposition does not think what Lord Leveson says this
:40:51. > :41:00.morning matters. Let me remind him what he said yesterday about the
:41:00. > :41:07.Leveson Inquiry. He said, "I think it is right that the Leveson
:41:07. > :41:12.Inquiry takes its course. The most important thing is that the Leveson
:41:12. > :41:17.Inquiry gets to the bottom of what happened, of what Labour did, of
:41:17. > :41:22.what the Conservatives did, and we reach a judgement." isn't it a
:41:22. > :41:28.typical of the right honourable gentleman. In the morning, he sets
:41:28. > :41:38.out his clear position but in the afternoon, he cannot resist the
:41:38. > :41:46.
:41:46. > :41:56.passing political bandwagon. Order. The Leader of the Opposition must
:41:56. > :41:58.
:41:58. > :42:02.be heard. Totally pathetic answers. He is the Prime Minister. If he
:42:02. > :42:09.can't defend the conduct of his own ministers, they should be out the
:42:09. > :42:16.door, he should fire them. He does not even tried to defend the
:42:16. > :42:21.Secretary of State. The Secretary of State told this House on 3rd
:42:21. > :42:28.March, "today, we are publishing all the concert -- consultation
:42:28. > :42:36.documents, all of the exchanges between my department and News
:42:36. > :42:39.Corporation." but he did not. The Prime Minister does not defend him
:42:39. > :42:44.over giving confidential information to one party in the
:42:44. > :42:51.case. He does not defend him over collusion. Is he really going to
:42:51. > :42:54.defend him about not being straight with the House of Commons?
:42:54. > :43:04.Culture Secretary has my full support for the excellent job he
:43:04. > :43:08.has done. The Culture Secretary will be giving a full account of an
:43:08. > :43:12.self in this House of Commons this afternoon and in front of the
:43:12. > :43:18.Leveson Inquiry and he will give a good account of himself for this
:43:18. > :43:22.reason. That in judging this important bid, the Culture
:43:22. > :43:29.Secretary sought independent advice from independent regulators cost at
:43:29. > :43:33.every stage, although he did not need to. The Culture Secretary took
:43:33. > :43:38.that independent advice at every stage. The way the culture
:43:38. > :43:45.secretary has dealt with this issue is in stark contrast to the
:43:45. > :43:50.Government's to which she was a member. -- to which he was. While
:43:50. > :43:53.his Culture Secretary remains in place, while he refuses to come
:43:53. > :44:02.clean on his and the Chancellor's meetings with Rupert Murdoch, the
:44:02. > :44:08.Shadow of sleaze will Hanover this Government. It is a pattern with
:44:08. > :44:13.this Prime Minister. Andy Coulson, Rebekah Brooks. When is he going to
:44:13. > :44:23.realise, it is time to stop putting his cronies before the interests of
:44:23. > :44:24.
:44:24. > :44:32.the country. He called for an independent judicial required a --
:44:32. > :44:36.inquiry. The fact is, the problem of closeness between politicians
:44:36. > :44:43.and media proprietors had been going on fears and it is this
:44:44. > :44:48.Government that is going to sort it out. -- going on for years. Whether
:44:49. > :44:53.it is cleaning up our financial system, dealing with our debts, I
:44:53. > :45:03.don't duck my responsibilities. What a pity he cannot live up to
:45:03. > :45:20.
:45:20. > :45:27.Is my right honourable friend aware of the very good to know news on
:45:27. > :45:37.the manufacture ring sector in Lincoln where there has been an
:45:37. > :45:37.
:45:37. > :45:41.increase in turnover in local businesses? Would my right
:45:41. > :45:47.honourable friend accept my personal invitation to visit
:45:48. > :45:51.Lincoln and see for himself the excellent success it is enjoying?
:45:51. > :45:59.am grateful for the invitation and I will try to take it up. As I said
:45:59. > :46:03.earlier, what is happening in our economy, apart from the very
:46:03. > :46:08.disappointing news today, is a rebalancing that is taking place,
:46:08. > :46:10.which needs to take place, in terms of manufacturing investment,
:46:11. > :46:20.exports and the Government might getting behind that with more
:46:21. > :46:24.
:46:24. > :46:31.investment in apprenticeships and technical hubs at our universities.
:46:31. > :46:39.Mr Speaker, on Monday, the Prime Minister said that he was going on
:46:39. > :46:44.and economic rescue mission -- an economic rescue mission as a is it
:46:44. > :46:48.not the case that that has failed spectacularly? We saw a 7%
:46:48. > :46:53.contraction of our GDP, to bigger even than what happened in America.
:46:53. > :46:57.It is worth remembering that we had the biggest bang bail-out anywhere
:46:57. > :47:04.in the world. Getting out of the recession, the financial crisis and
:47:04. > :47:10.the debt crisis is difficult, painstaking work. But this
:47:10. > :47:12.Government is committed to doing just that. Last week, I met at the
:47:13. > :47:19.Chief Executive of the fourth largest manufacturing group in the
:47:19. > :47:23.UK, who have a substantial factory in Burnley. He has been instructed
:47:23. > :47:26.by his United States board to increase the turnover of his UK
:47:26. > :47:32.operations so as to take advantage of the Government's industrial
:47:32. > :47:41.strategy. He is concerned about the lack of skills. Can my right
:47:41. > :47:45.honourable friend at assured me that investment -- investment in
:47:45. > :47:49.apprenticeships will increase in the coming years? If any Member of
:47:49. > :47:53.Parliament wants to talk about manufacturing success or business
:47:54. > :47:58.success in their constituency, they are shouted down by the opposition.
:47:58. > :48:01.All they wanted here is bad news adds to talk our economy down. We
:48:01. > :48:05.are investing in skills, we are putting more money into
:48:05. > :48:15.apprenticeship schemes, we are putting money into technical
:48:15. > :48:15.
:48:15. > :48:22.colleges. Her I was looking at growth plans in Airbus this week,
:48:22. > :48:27.and it is good to hear his good news. The Chancellor said in 2008,
:48:27. > :48:34.once you have a downturn -- downturn, you cannot cut public
:48:34. > :48:43.expenditure. Will he go back on his policy of cutting too far and too
:48:43. > :48:48.fast? Well-read! The truth is we inherited from the party opposite a
:48:48. > :48:53.budget deficit of 11%. The budget deficit we inherited was bigger
:48:53. > :49:00.than Greece, than Spain, than Portugal. If you do not deal with
:49:00. > :49:04.your debt and your deficit, you will never keep interest rates low.
:49:04. > :49:14.It is low interest rates that offer was the best prospect of getting
:49:14. > :49:23.
:49:23. > :49:30.out of the situation we are in. Order! Thank you, Mr Speaker. At
:49:30. > :49:33.least 500,000 children died from malaria last year. May I thank the
:49:33. > :49:38.Prime Minister for his personal commitment to combating this
:49:38. > :49:46.disease and will he join me in recognising the international
:49:46. > :49:53.leadership which British scientists, aid workers, and volunteers show in
:49:53. > :50:01.combating malaria? I am very grateful to join the honourable
:50:01. > :50:07.gentleman and to wish his constituents well. He is right to
:50:08. > :50:11.raise the issue. 15,000 children die every week from what is a
:50:11. > :50:19.preventable illness. That is why I am proud of the fact that Britain
:50:19. > :50:23.is leading on this issue, is putting money into bed nets and the
:50:24. > :50:33.scientific advances that he is talking about. I think we're right
:50:33. > :50:38.to pursue it. Does this out of touch Prime Minister still believe
:50:38. > :50:42.that the British economy is out of the dangers on? Look, one of the
:50:42. > :50:46.biggest problems we faced on taking office was the danger that
:50:46. > :50:51.financial markets would take a view of Britain at likely have taken of
:50:51. > :50:54.Greece, Spain or Portugal, where interest rates were rising. The
:50:54. > :50:59.fact that we have such an low interest rates in Britain
:50:59. > :51:02.demonstrates that we have credibility. These are difficult
:51:02. > :51:06.decisions to deal with public spending, but they are the right
:51:06. > :51:10.decisions, not least because the Shadow Chancellor once said that
:51:10. > :51:18.sad mark interest rates are the market economic credibility.
:51:18. > :51:26.head teachers of high schools in Calder Valley both very much
:51:26. > :51:29.welcome the Government's educational reforms. They did not
:51:29. > :51:38.qualify for the BSF under the previous government because they
:51:38. > :51:43.attained too highly. Can the Prime Minister tell us will when they can
:51:43. > :51:47.expect an announcement on funding? Compared with the first two
:51:47. > :51:52.parliaments of the party opposite, we are investing more in school
:51:53. > :51:56.building than they did. I think the figure is something along the lines
:51:57. > :52:03.of �17 billion during the Spending Review period. There are
:52:03. > :52:06.opportunities for new classrooms and new buildings. I am sure that
:52:06. > :52:14.the Secretary of State for Education will be in touch with him.
:52:14. > :52:19.Does the Prime Minister agree with a member from Mid Bedfordshire when
:52:20. > :52:25.she said that the Prime Minister and Chancellor... Order! Let's hear
:52:25. > :52:32.the question. When she said they were posh boys showing no
:52:32. > :52:36.compassion for the ways and under - - for the lives of others, and that
:52:36. > :52:46.this is farther evidence that he is out of touch and why we are in a
:52:46. > :52:47.
:52:47. > :52:53.double-dip recession? I agree with him about many things. Over the
:52:53. > :53:03.last two years, UK exports have grown by 23%, with faster growth to
:53:03. > :53:03.
:53:03. > :53:13.Brazil, Russia, India and China. Will he join with me on
:53:13. > :53:22.congratulating the 150 winners of the award for business. I certainly
:53:22. > :53:28.join him in that. When we look at some markets around the world, our
:53:28. > :53:33.export performance combat compared with 2009, is up by as much as 60%
:53:33. > :53:38.in some of those markets. We have to also remember our old friends
:53:38. > :53:42.and that we export more to the Republic of Ireland than we do to
:53:42. > :53:48.Brazil, Russia, India and China combine. We need to do much more
:53:48. > :53:52.work to get into the fast-growing markets in the world. Recently, the
:53:52. > :53:58.Prime Minister conceded that the Government had made an important
:53:58. > :54:03.mistake in the handling of the fuel crisis. Can I ask him: Would it not
:54:03. > :54:07.be a positive step in correcting that mistake if the Government were
:54:07. > :54:12.to scrap -- scrap the 3p increase in August in order to help
:54:12. > :54:18.motorists, haulage companies and hard-pressed families in the United
:54:18. > :54:23.Kingdom? First of all, the Government has used around �4
:54:23. > :54:26.billion of budget money to keep petrol prices down. They are about
:54:26. > :54:30.six pence lower than they would be under the plans of the party
:54:31. > :54:35.opposite. Let me update the honourable gentleman, and indeed
:54:35. > :54:39.the House, on the issue of the fuel strike. It now looks as if there is
:54:39. > :54:43.a longer period of time before any potential strike could take place.
:54:43. > :54:47.I am determined that we use that time to make sure there is every
:54:47. > :54:51.piece of resilience in place. The plans we inherited would have
:54:51. > :54:57.allowed the military to provide maybe 10% of our fuel needs. If we
:54:57. > :55:00.have now managed to lift that is something like 60 or 70%. We are in
:55:00. > :55:03.a better place now because of the proper emergency planning if that
:55:03. > :55:08.this government has done, rather than the party opposite, he just
:55:08. > :55:15.crossed their fingers and hope for the best from the trade unions.
:55:15. > :55:21.Next Wednesday, my mother will celebrate her 100th birthday.
:55:21. > :55:25.Living, as he does, five minutes from the Olympic Stadium, she has
:55:25. > :55:32.agreed to be the pacemaker for Usain Bolt, in order to give the
:55:32. > :55:34.other athletes a chance. Will my right honourable friend call on the
:55:34. > :55:41.indomitable spirit of former land army girls like my mother and
:55:41. > :55:45.encourage our Olympic athletes to go for gold? I will certainly do
:55:45. > :55:50.that. I have written to her to congratulate her on this fantastic
:55:50. > :55:56.milestone, and I am sure that, as she speeds past Usain Bolt, she
:55:56. > :55:59.will turn round and reflect that, indeed, the only way is Essex.
:55:59. > :56:08.delighted the Prime Minister has written to her. That makes two of
:56:08. > :56:18.us. The Prime Minister has spent plenty of time getting close to
:56:18. > :56:18.
:56:18. > :56:24.NewsCorp in return for their support. I can wait! He is well
:56:24. > :56:30.qualified to call off up -- to answer this question. When Alex
:56:30. > :56:34.Salmond agreed to act as a lobbyist for NewsCorp, was he acting in self
:56:34. > :56:38.interest or in the interests of Scotland? I think Alex Salmond can
:56:38. > :56:46.answer for himself. I think that this is another issue that the
:56:46. > :56:50.Leveson Inquiry, which will interview all the politicians,
:56:50. > :56:56.including all sorts of people who got close to News International
:56:56. > :56:59.over the years, and I think that on all sides of the House, there is an
:56:59. > :57:04.needs to admit that we all got too close to Rupert Murdoch. On that
:57:04. > :57:09.basis, I am sure that Lord Levison will make some important
:57:09. > :57:18.recommendations. Has the Prime Minister seen the research
:57:18. > :57:24.published today by the Taxpayers' Alliance which shows that there are
:57:24. > :57:29.3097 town-hall employees earning more than �100,000.52 earning more
:57:29. > :57:36.than �250,000? My constituents cannot understand such exorbitant
:57:36. > :57:40.salaries. What can we do about it? I think my honourable friend is
:57:40. > :57:44.entirely right to raise this issue. The important thing we have done is
:57:44. > :57:49.make completely transparent the pay in our town halls and in local
:57:49. > :57:52.government. Sadly, I believe there is still one local council, a
:57:52. > :57:57.Labour-controlled council in Nottinghamshire, that is not making
:57:57. > :58:05.this information available. Every council should be transparent about
:58:05. > :58:09.how they spend council tax payers' money. Last year, the Prime
:58:09. > :58:12.Minister said to people warning him of the risk of a double-dip
:58:12. > :58:17.recession should apologise. Now that he has delivered one, should
:58:17. > :58:22.he not apologise? The point I want to make is this: We faced a very
:58:22. > :58:28.difficult situation with an 11% budget deficit. If we had listened
:58:28. > :58:32.to the plans of the party opposite and spent more, borrowed more, that
:58:32. > :58:36.would have dominate the debt crisis worse. How can the answer to such a
:58:36. > :58:43.crisis be more borrowing? That is a question the party opposite can
:58:43. > :58:53.never run so. After weeks of ducking and diving, Ken Livingstone
:58:53. > :58:56.
:58:56. > :58:59.has given a partial publication of his tax affairs. He has refused to
:59:00. > :59:06.publish the accounts of the company he set up to a boy tax. Does he
:59:06. > :59:09.agree with me that Ken Livingstone has become the artful Dodger?
:59:09. > :59:14.think my honourable friend speaks for all of London when he makes
:59:15. > :59:24.this point. Ken Livingstone hours some proper transparency about this
:59:25. > :59:34.
:59:34. > :59:38.company and his tax bill. -- owes. I hardly ever agree with Alan Sugar,
:59:38. > :59:41.but I agree with him about Ken Livingstone. Now that the Prime
:59:41. > :59:51.Minister has admitted that he has created the economic mess that the
:59:51. > :59:55.country is in, can I be helpful to him and suggest that he drops his
:59:55. > :59:58.ridiculous proposals for regional pay cuts and extends the capital
:59:58. > :00:05.programme to schools in Coventry and the West Midlands? As I said,
:00:05. > :00:09.we are spending more on schools than either of the first to back
:00:09. > :00:12.Labour parliament. I am happy for ministers to look again at the case
:00:12. > :00:18.in his constituency and see what can be done. If I also hope he will
:00:18. > :00:24.be joining me in inviting people on the third of May to vote for a
:00:24. > :00:27.mayor for Coventry. Every year, people donate millions to charities.
:00:27. > :00:32.They do it because they want to help others worse off than
:00:32. > :00:36.themselves. I would call these actions by members of the public or
:00:36. > :00:41.honourable, kind and selfless. We have all heard recently that some,
:00:41. > :00:46.not all, but some of our wealthy citizens what we want to donate to
:00:46. > :00:55.charity if they can reduce their tax bill. Thus the Prime Minister
:00:56. > :01:05.think their motors are honourable, I think we should support people
:01:05. > :01:09.want to give to charity. There were a number of limits to reliefs in
:01:09. > :01:12.the budget. We identified the potential problems for charities
:01:12. > :01:17.and the Chancellor will consult widely about how we can make sure
:01:17. > :01:25.we encourage charities and encourage what they do in our
:01:25. > :01:35.country. The Prime Minister's dismissive response to the fact the
:01:35. > :01:37.
:01:37. > :01:44.UK is back in recession, sure he just not -- should he just sat his
:01:44. > :01:49.Culture Secretary? -- sack. There is nothing dismissive about my
:01:49. > :01:55.reply and the economy all what I think we need to do. We are in a
:01:55. > :02:00.difficult economic situation in Britain. Recessions in Denmark,
:02:00. > :02:04.Italy, Spain, that is what is happening across the Continent that
:02:04. > :02:09.we trade with. What is essential is that we take every step we can to
:02:09. > :02:14.help our economy out of recession. We need to invest in
:02:14. > :02:24.apprenticeships, cutting business tax, prioritise investment in our
:02:24. > :02:26.
:02:26. > :02:29.infrastructure. We are doing all of these things. Far from being
:02:29. > :02:33.dismissive, I think the Prime Minister acknowledged that the
:02:33. > :02:43.figures were disappointing. But would he agree with me that getting
:02:43. > :02:44.
:02:44. > :02:50.out of a debt crisis, you don't spend more money. My right
:02:50. > :02:56.honourable friend is right. No international body is making that
:02:56. > :03:01.case and no business organisation is making that case. While these
:03:01. > :03:05.figures are disappointing, we must not give up the low interest rates
:03:06. > :03:12.because that would be the way to land our economy and the problems
:03:12. > :03:22.they left it in. In just two years, the economy doesn't eat the session
:03:22. > :03:31.
:03:31. > :03:35.and the Government is the been sleaze. Same old Tories. Order.
:03:35. > :03:41.That is the end of Prime Minister's Questions but we are now going to
:03:41. > :03:51.here what David Cameron describes as a full account of himself from
:03:51. > :04:02.
:04:02. > :04:12.the culture secretary. The statement is from the Culture
:04:12. > :04:19.
:04:19. > :04:22.Secretary. With permission, I would like to make a statement following
:04:22. > :04:28.yesterday's developments at the Leveson Inquiry. Although I intend
:04:29. > :04:33.to respond fully to allegations about my conduct, that of my
:04:33. > :04:37.apartment, when I present my evidence, I believe it is important
:04:37. > :04:47.to update the House on actions that have been taken as a result of
:04:47. > :04:48.
:04:48. > :04:53.evidence released yesterday. We are 273 days into a process that's
:04:53. > :05:03.first stage will last until October. This is not the time to jump on a
:05:03. > :05:09.
:05:09. > :05:13.political bandwagon. What the public want to hear is not my views
:05:13. > :05:20.but the views of Lord Justice Leveson when he has considered all
:05:20. > :05:28.the evidence. I do think it is right to set The Record state --
:05:28. > :05:38.straight on a number of issues. Specifically, the merger of News
:05:38. > :05:39.
:05:39. > :05:45.Corporation with BSkyB. I have a strictly followed due process. I
:05:45. > :05:50.have seek the advice of independent regulators and after careful
:05:50. > :05:56.consideration, I acted on their advice. I have published all advice
:05:56. > :06:04.I have received together with correspondence between myself and
:06:04. > :06:09.News Corporation. Including details of all meetings. As part of this
:06:10. > :06:14.process, my officials and I have engaged with News Corporation as
:06:14. > :06:22.well as other interested parties, both supporters and opponents of
:06:22. > :06:27.the merger. Transcripts of conversations and texts publics
:06:27. > :06:33.yesterday -- published yesterday, have been alleged to indicate there
:06:33. > :06:43.was a back channel through which News Corporation were able to
:06:43. > :06:44.
:06:44. > :06:54.influence my decisions. This is categorically not the case. Order.
:06:54. > :06:54.
:06:54. > :06:58.The statement must be heard. There will be a full opportunity for
:06:58. > :07:05.questions but it is right and proper that the statement should be
:07:05. > :07:11.heard with courtesy. However, the volume and tone of those
:07:11. > :07:21.communications were clearly not appropriate. Today, Adam Smith has
:07:21. > :07:23.
:07:23. > :07:27.resigned as my special adviser. Although Adam Smith accepts that he
:07:27. > :07:32.overstepped the mark on this occasion, I want to set on record
:07:32. > :07:37.that I believe he did so unintentionally and do not believe
:07:37. > :07:47.that he was doing anything more than giving advice on process. I
:07:47. > :07:49.
:07:49. > :07:53.believe him to be somebody of integrity and decency. I only saw
:07:53. > :08:00.the transcripts of these Communications yesterday. They did
:08:00. > :08:03.not influence my decisions in any way at all. I insisted on hearing
:08:03. > :08:08.the advice of independent regulators at every stage. I will
:08:08. > :08:12.give my full record of events when I give evidence to Lord Justice
:08:12. > :08:19.Leveson but I would like to resolve this issue as soon as possible
:08:20. > :08:29.which is why I have returned to -- written to Lord Justice Levison
:08:30. > :08:31.
:08:31. > :08:37.asking for my evidence to be brought forward.
:08:37. > :08:41.That was the Culture Secretary, Jeremy Hunt, trying to explain self.
:08:41. > :08:45.We will talk about the questions leucine in a moment but let's deal
:08:45. > :08:51.with that statement. He was coming under great pressure to resign
:08:51. > :09:01.yesterday. He said his special adviser has resigned. Does that
:09:01. > :09:01.
:09:02. > :09:06.Keegan and his job? I would think so. If he has committed
:09:06. > :09:10.inappropriate behaviour, I think any Minister would then have to
:09:10. > :09:19.look at their position. But listening to what he just said, it
:09:19. > :09:23.does not appear so. You get into this difficult situation about how
:09:23. > :09:26.responsible you are for the actions of other people. I think he should
:09:26. > :09:36.be given his chance to speak to Lord Justice Leveson and put
:09:36. > :09:41.
:09:41. > :09:47.forward his views. You are a former special adviser. Jeremy Hunt's
:09:47. > :09:57.special adviser has resign today. What you make of that news? Jeremy
:09:57. > :09:59.
:09:59. > :10:04.Hunt looks to me like a dead man walking. In my experience in the
:10:04. > :10:12.last Government, in anything that had a quasi-judicial components to
:10:12. > :10:17.it, special advisers would play no part in it at all. In this case, we
:10:17. > :10:23.know very clearly that Jeremy Hunt's special adviser was up to it
:10:23. > :10:26.-- in it up to his neck. I find it difficult to imagine that any
:10:26. > :10:30.special adviser conducting those sorts of discussions would not be
:10:30. > :10:36.doing it without making sure his Secretary of State knew what he was
:10:36. > :10:45.up to in the first place. It seems unbelievable to me. Let's move on
:10:45. > :10:50.to the questions. We got the announcement this morning about the
:10:50. > :10:55.recession. David Cameron came out fighting. He pointed the blame at
:10:55. > :11:00.Labour for the mess we are in. did come out fighting but can I
:11:00. > :11:10.just say that the first thing was the sad news that up we, the Welsh
:11:10. > :11:10.
:11:10. > :11:14.people, have lost another person to the war in Afghanistan. It is
:11:14. > :11:24.tragic for everybody but for the families involved, I just want to
:11:24. > :11:25.
:11:25. > :11:32.say that we recognise that. I thought Ed Miliband was on good
:11:32. > :11:40.form. But I think David Cameron was very robust in his defence. We are
:11:40. > :11:45.talking about the double-dip recession. We have been in a much
:11:45. > :11:52.bigger recession under the previous administration. Times are tough. It
:11:52. > :11:58.is about sticking to a plan and making it work. David Cameron
:11:58. > :12:05.started the week off making some sort of a fight back saying his
:12:05. > :12:09.Government had a difficult month but that has been extended.
:12:09. > :12:16.Governments tend to get into these sort of patterns where one piece of
:12:16. > :12:21.bad news generates another piece of bad news. The problem for David
:12:21. > :12:25.Cameron in Prime Minister's Questions was this, here he is now,
:12:25. > :12:29.Prime Minister for two years already and heading into the third
:12:29. > :12:35.and it is harder and harder for him to rely on pointing the finger at
:12:35. > :12:40.what he inherited to explain the position that he is in. He did not
:12:40. > :12:50.stand in the last election, saying, vote for me and in two years' time
:12:50. > :12:59.I will still be blaming the slot. It is a trip all politicians use. -
:12:59. > :13:08.- trick. You can only use that line it so often. Any Prime Minister
:13:08. > :13:12.would have been expected to be in a better position today than he's in.
:13:12. > :13:16.I felt today that he stuck to that line because it was the best line
:13:16. > :13:24.available to him. I felt it was pretty thin to start with and very
:13:24. > :13:28.thin when a finish. Let's move on to Welsh questions. While we were
:13:28. > :13:35.watching it, you were praising the Secretary of State for Wales for
:13:35. > :13:43.her performance. She came under some heavy attack but I thought she
:13:43. > :13:49.put up a good performance today. Very feisty. Very direct. I thought
:13:49. > :13:56.she was very fair in pointing way she felt the relationship with the
:13:56. > :14:00.Welsh Government needed to be. The good things and the bad things.
:14:00. > :14:10.remarked that there were not many Welsh Conservatives asking
:14:10. > :14:15.
:14:15. > :14:19.questions. That is what surprised me most. As the half-hour wore on,
:14:19. > :14:24.I was asking myself where is the Welsh Conservative Party? One
:14:24. > :14:29.Conservative backbencher from Wales took part in questions today. The
:14:29. > :14:39.Secretary of State was under heavy attack from the Labour side. I just
:14:39. > :14:39.
:14:39. > :14:49.wondered where her troops were. Looking ahead to the local
:14:49. > :14:52.
:14:52. > :14:55.elections, a quick word about what going to happen. Our people
:14:55. > :15:00.interested in these elections? People are very concerned about the
:15:00. > :15:03.local issues. I listened to the First Minister on Radio Wales this
:15:03. > :15:08.morning saying that every door he was knocking on, people was --
:15:08. > :15:11.people were saying how dreadful things were in England and they
:15:11. > :15:17.were grateful they were lent -- living in Wales and none of this
:15:17. > :15:22.was happen fast -- happening. On my patch, people wanted to know if
:15:22. > :15:32.Withybush Hospital is safe. They are worried about education and
:15:32. > :15:35.
:15:35. > :15:38.will sorts of things. Not one I am sure Mark will tell you.
:15:38. > :15:43.things that people say to me are very much to do with what matters
:15:43. > :15:47.to them in their own lives. They talk about traffic, parking,
:15:47. > :15:50.rubbish, environment, the school their child goes to. All of these
:15:50. > :15:54.things are part of what local government provides. It is
:15:54. > :15:58.sometimes difficult to get people into that conversation, but once
:15:58. > :16:02.you start it, it is easy for people to see why these elections really
:16:02. > :16:12.matter. We will come back here before we depart this afternoon. We
:16:12. > :16:29.
:16:29. > :16:32.It is locked to look back at -- local election time. Earlier, Mark
:16:32. > :16:37.spoke to the local government minister.
:16:37. > :16:41.Everybody knows that the time is not ideal for you. How worried are
:16:41. > :16:44.you about the impact of that on the Welsh election? It is always
:16:44. > :16:54.difficult when you are in government, taking responsibility
:16:54. > :16:56.
:16:56. > :17:00.and taking difficult decisions. We have delivered new facilities and
:17:00. > :17:03.cuts in council tax. Wherever the Lib Dems have been in power we have
:17:03. > :17:07.delivered the best services for local people and kept the council
:17:07. > :17:12.tax low. That is what we are focusing on and it is having a good
:17:12. > :17:18.reception. If people do feel sick - - dissatisfied by the UK Government,
:17:18. > :17:22.we hope that people will put that to one side and focus on what this
:17:22. > :17:27.is as a -- what this is about - who will look after your local codes of
:17:27. > :17:30.the next five years. You talk a lot about education, and that seems to
:17:30. > :17:37.be the central point of your campaign this time, is that there?
:17:37. > :17:43.Yes. We have the pupil premium, which we got after negotiating with
:17:43. > :17:46.the Welsh government here. �450 for every disadvantaged people in Wales.
:17:47. > :17:51.Where we are running the council or have an influence, we have invested
:17:51. > :17:58.more on education and have helped to raise the standard of education.
:17:58. > :18:01.I think it is a very good, strong suit for the bends, and it is one
:18:01. > :18:06.where emphasising on the doorstep. What can you offer people on
:18:06. > :18:14.council tax in particular? Cardiff and Wrexham have the two lowest
:18:14. > :18:18.council tax rises of anywhere in Wales. We have frozen council tax
:18:18. > :18:21.this year. I think if people want to keep their council tax down, and
:18:21. > :18:24.the recognised people are struggling in these difficult times,
:18:24. > :18:31.they need to vote for Wells Liberal Democrats because we have the best
:18:31. > :18:35.record. Another issue which is always important to people is
:18:35. > :18:39.housing, getting access to it. Does your heart -- does your party had
:18:39. > :18:43.any particular ideas about how to make that? We are putting more
:18:44. > :18:50.money into affordable housing and increasing the existing housing
:18:51. > :18:54.stock -- stock. We're having to invest from our own resources in
:18:54. > :18:59.houses in Cardiff and Wrexham. We are pitting �18 million into
:18:59. > :19:05.Swansea over the next three years, and creating jobs as a result of
:19:05. > :19:09.that. We intend to increase the number of affordable homes and to
:19:09. > :19:15.tackle the huge shortage of housing which everybody is facing across
:19:15. > :19:19.Wales. How will you stimulate business growth? Lib Dem councils
:19:19. > :19:28.have been very favourable to businesses. In Cardiff, we have the
:19:28. > :19:33.new business enterprise zone, in Swansea, we have improvement
:19:33. > :19:38.districts in the city centre which helps businesses to lower their
:19:38. > :19:44.costs and attract new custom. We're investing in the city centre of
:19:44. > :19:49.Cardiff and Swansea. Wrexham has turned round its town-centre and it
:19:49. > :19:52.is unrecognisable from when the Lib Dems took over. Clearly, some of
:19:52. > :19:57.your own members have been disaffected by what has happened on
:19:57. > :20:02.a UK level, will that undermine your campaign? It is a separate
:20:02. > :20:06.issue. We have to concentrate more on the seats that we hold and put
:20:06. > :20:11.all our efforts into that. Yes, it has been difficult because we are
:20:11. > :20:14.in government and we have lost some members because of that, but we are
:20:14. > :20:16.focusing on the quality of candidates that we are putting
:20:16. > :20:21.forward and we are delivering, hopefully, a better service to
:20:21. > :20:27.people. We hope to maintain and retain a large number of the
:20:27. > :20:32.councils that we have. Thank you for now.
:20:33. > :20:38.As we heard earlier, my two guests have been on the election trail.
:20:38. > :20:41.But let us talk about Turner. Last time it was about 44% around the
:20:41. > :20:45.councils in Wales. It compares favourably to the assembly
:20:46. > :20:53.elections, doesn't it? It is not as good as we would like it to be but
:20:53. > :20:56.people are already voting. Postal voters already have their ballot
:20:56. > :21:03.papers. We will work hard to make sure as many people as possible
:21:03. > :21:08.vote in the election stop for all political parties are handicapped
:21:08. > :21:12.that we try to run our elections on a system that has barely changed
:21:12. > :21:15.since the 19th century. We really need to update the way that we
:21:15. > :21:23.conduct elections to make it easier for people to cast their votes in
:21:23. > :21:27.modern conditions. I guess you are hinting at use of the Web and
:21:27. > :21:32.people's telephones. What do you think about? It is important
:21:33. > :21:39.because I think we need to capture younger voters. Younger people just
:21:39. > :21:43.communicate by totally different means. It is just part and parcel
:21:44. > :21:48.of their everyday lives. And will it make a big difference to turn
:21:48. > :21:53.out? It will. I think turnout is quite highly in local elections
:21:53. > :22:03.because, as Marx said earlier, it deals with the issues that matter
:22:03. > :22:07.to people on a day-to-day basis. will get to the ordeal mower to
:22:07. > :22:13.talk to Mark Hannaby. He will be talking to Plaid Cymru about the
:22:13. > :22:18.local elections. Yes. At the core of your manifesto
:22:18. > :22:24.this time is the issue of saving vital services. What is a vital
:22:24. > :22:28.service? And which services will you let go? Or services are vital
:22:28. > :22:33.but we're talking about direct services to people. I have been
:22:33. > :22:36.involved in campaigns to try and keep day centres opened,
:22:36. > :22:39.residential homes opened, those kind of services that are
:22:39. > :22:43.essentially two people in our communities. What do you think are
:22:43. > :22:50.the things that we have to let go of? It is direct choices because
:22:50. > :22:54.the money is not there to do everything. He can look at savings.
:22:54. > :22:59.Some councils have looked at middle management and areas where they can
:22:59. > :23:03.operate more efficiently. It can be done within budget but you have to
:23:03. > :23:08.prioritise. We are saying that the priorities are the services to the
:23:08. > :23:14.people, and especially those people who are dependent on those services.
:23:14. > :23:16.You have been in power in Caerphilly, can you give us an
:23:16. > :23:21.example of things you have achieved that might persuade people to vote
:23:21. > :23:31.for you, wherever they live in Wales? In terms of local economy,
:23:31. > :23:31.
:23:31. > :23:41.in Gwyneth there has been there has been a scheme which has saved 350
:23:41. > :23:45.jobs. -- in Gwynedd. In terms of the economy, we have already done
:23:45. > :23:49.their jobs in areas where we have been in control. Another one of the
:23:49. > :23:54.planks of that manifesto was the idea of buying local food. It
:23:54. > :23:57.strikes me that most councils would aspire to do that. There are all
:23:57. > :24:03.kinds of laws about competition and best value that sometimes prevent
:24:03. > :24:08.them. Why d'you think you can achieve that? Some councils do it
:24:08. > :24:12.better than others. You have to look at best practice and ensure
:24:12. > :24:16.that that happens more often. We are talking about �7.2 million
:24:16. > :24:24.worth of procurement. If that can be sourced locally it will be
:24:24. > :24:26.beneficial to the local economy. It also then means that local people
:24:26. > :24:31.are benefiting from that. We have to make the most of that
:24:31. > :24:35.opportunity. You have made a commitment to try to provide paid a
:24:35. > :24:41.Kentish -- apprenticeships. We are not so used to hearing about that
:24:41. > :24:45.at council level - is the money there to do that kind of thing?
:24:45. > :24:49.did it in Caerphilly. There is no reason why we cannot do it in other
:24:49. > :24:53.local authorities. We have to look at the situation facing us where
:24:53. > :24:57.local authorities in Wales will be facing an additional �23.4 million
:24:57. > :25:01.tax from the Welsh government because of the fact that they are
:25:01. > :25:05.not prepared to fund the shortfall in terms of tax benefits. The SNP
:25:05. > :25:08.in Scotland have done so, but local authorities in Wales will have to
:25:08. > :25:14.find that money because the government here is refusing to do
:25:14. > :25:19.it. I liked the idea of buying local food. You have also talked
:25:19. > :25:24.about public sector contracts coming from Wales. Is it
:25:24. > :25:27.achievable? Yes. But you have to look at the way that you set out
:25:27. > :25:31.those contracts and that this blaze. There are regulations where you can
:25:31. > :25:37.do that the study have to be imaginative, but it can be done.
:25:37. > :25:41.Your leader recently spoke about a united Welsh alternative - is that
:25:41. > :25:46.really what you candidates needs when they are going out fighting
:25:46. > :25:50.Labour on the stump? We are saying that we have to work together to
:25:50. > :25:54.help safeguard the people of Wales from the cuts in Westminster. If
:25:54. > :25:57.parties want to work with us we will work with them on initiatives
:25:58. > :26:04.that will safeguard the people of Wales. At the moment, they're not
:26:04. > :26:07.doing it. Thank you. You can find more information on
:26:08. > :26:17.the local elections, including how the seats currently stack up in
:26:17. > :26:20.your council, by going to the BBC news website. Before we go, a quick
:26:20. > :26:24.chat with our guess about what is coming up this afternoon in the
:26:24. > :26:29.assembly. There is a short debate on the role of the media, is that
:26:29. > :26:34.right? Are you saying positive things about us here on AM-PM?
:26:34. > :26:39.course, I will say positive things about all of you lovely reporters!
:26:39. > :26:48.The main focus is about why we need a strong leader in Wales. -- a
:26:48. > :26:52.strong media in Wales. Our media are not as strong as they could be.
:26:52. > :26:57.I think it is important because it helps to inform and shake the
:26:57. > :27:06.politics here. I do not want to be knocking on doors in 2016, seeking
:27:06. > :27:11.re-election, and people still ask me what the assembly does and who
:27:11. > :27:14.does the NHS and who does education. We need a strong media. It will
:27:14. > :27:17.help us improve our game, it improves the scrutiny of the
:27:18. > :27:21.government. It is a symbiotic relationship and I am worried that
:27:21. > :27:28.it is out of kilter at present. will watch that later. Apart from
:27:28. > :27:35.that debate, what other highlights for you? It will be an important
:27:35. > :27:38.debate because a lively medium is essential. I think we will get off
:27:38. > :27:42.to a lively start because we will have questions to the health
:27:42. > :27:48.minister, which is always a lively occasion. With elections coming up,
:27:48. > :27:52.it will probably be more lively than ever. I am looking forward to
:27:52. > :27:57.this afternoon's session getting off to a good start. A quick answer
:27:57. > :28:03.on what Marx suggests about the health minister having a positive
:28:03. > :28:07.story to tell? There are always good and bad things with everything.
:28:07. > :28:13.The real issue is about the shape and direction of the health service
:28:13. > :28:18.over the next five to ten years. I think that is an issue that taxes
:28:18. > :28:23.people at a local level a lot. Briefly, after you finish your work
:28:23. > :28:33.in Cardiff Bay, you are out campaigning again, are you? In the
:28:33. > :28:33.