25/04/2012 am.pm


25/04/2012

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Good morning and welcome to AMPM. One of our regular Westminster

:00:23.:00:26.

happy hours for you today and all the news from the corridors of

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power here in Cardiff Bay as well. I say happy hour, but the breaking

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news this morning is that the UK is in recession for the second time in

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three years. We'll be off to the Commons shortly for Welsh Questions

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and that will be followed by Prime Minister's Questions. David Cameron

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is expected to come under pressure over the future of the Culture

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Secretary, Jeremy Hunt. He's again defended himself against calls for

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his resignation over contacts with Rupert Murdoch's media empire. And

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news that the UK is in recession again will surely feature. Jeremy

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Hunt may be the only man in the country happy about that, if it

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deflects some attention away from him. All that to come, but before

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we whisk off to Westminster, a quick chat with guests, Labour's

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:01:13.:01:14.

Mark Drakeford and Angela Burns from the Welsh Conservatives.

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Your party has experience of being in recession in Government. The

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news this morning is a double-dip recession. What is your reaction?

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Nobody wants to be in a recession. It is not in anybody's interests.

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The Labour Party is not taking any pleasure out of it. It is bad news.

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The economy is bumping along the bottom. Not many people predicted

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we would be below the 0 % but if you look at the construction

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industry which has been badly hit, the construction industry relies

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heavily on public sector contracts and those have dried up completely.

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But if you look at tax revenues, that is where I think the real clue

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was. The Chancellor's tax revenues are way below what he was

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predicting weeks ago. Thatcher's tells you there is simply no

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economic activity going on out there and for me, this brings us

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back to the fundamental point, you can't cut your way out of recession.

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You have to have a real growth strategy and that is what this

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Chancellor has failed to deliver. Quite a balanced interpretation. I

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am sure you won't just blame Labour for this mess. We have been looking

:02:42.:02:51.

at the upcoming elections in France. The markets were taking fright at

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the prospect of a different President in France because the

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economy that he is advocating is one of spending and France not

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following the austerity measures that they have them and trying to

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spend their way out. The markets don't feel that is right. It is

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awful for our country to be in a double-dip recession but we have

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retained our very important credit ratings. The markets still have

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confidence. We are pretty much the last man standing. I would not be

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too keen to knock the Chancellor's plans because they have held up

:03:37.:03:47.
:03:47.:03:49.

very well for the UK. The markets have taken fright at the prospect

:03:49.:03:52.

of a left-wing socialist victory in France because he was to spend his

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way out but the alternative is that cutting your way out is not working.

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The markets are frightened about uncertainty. With the prospect of a

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new Government in France, that is what is worrying them. Just like

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they are worried about the collapse of the Government in Holland. If

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you want to see where things are working in the Western world, you

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go to the United States of America which has had a good approach to

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this way they have growth in jobs and growth in the economy. Although

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they don't have a triple-A rating, there are still managing to run a

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very successful recovery. We will head over to the Commons now. Our

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parliamentary correspondent, David Cornock, is there. Good morning.

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Welsh questions will be under way in a moment. The first question

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will be from Stuart Andrew who will ask a question about the

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discussions Cheryl Gillan has had about marketing Wales as a

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:05:21.:05:28.

destination for foreign business Just a little parliamentary

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business still to be got through before the speaker can get on with

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the main business of the day. Welsh questions followed by Prime

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Minister's Questions followed by the statement from Jeremy Hunt.

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:05:54.:05:56.

Labour is calling on Jeremy Hunt to resign.

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I will answer questions 1 and 3 together. I have regular

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discussions with ministerial colleagues and others on marketing

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Wales as a destination for foreign business investment. The recent

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Welsh Affairs Committee report on inward investment in Wales

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highlighted a number of important issues and we are committed to

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joint working with the last Government. One of the best ways to

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improve foreign investment into Wales is for the UK and Welsh

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governments to work more closely together. Does my right honourable

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friend regret the fact that the Welsh business Minister is

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:06:47.:06:47.

reluctant to do that. Co-operation between both governments is

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considered essential to marketing Wales. But as economic development

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is devolved and led by the Labour Government, I share his

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disappointment. I she his disappointment that the Business

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Minister would not give evidence to the Select Committee. The projects

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into Wales have diminished over the years and we need to get that back

:07:15.:07:25.
:07:25.:07:26.

up to compete effectively. Does she agree with me that it is right to

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:07:36.:07:36.

investigate opportunities in the emerging markets. The Prime

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Minister himself has said he wants to link this country to the fastest

:07:41.:07:51.
:07:51.:07:56.

growing parts of the world. That is why I am pleased that we have now

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joined up with the last Government and the have offered at least one

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:08:12.:08:13.

investment adviser to work in at the last Government offices. -- the

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Welsh Government offices. I am sure we can get the two governments

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working together in the interests of Wales. Could it transport links

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-- could it transport links are essential. What discussions has she

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had with the First Minister and the Welsh Government on improving links

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with Cardiff airport? I have constant discussions with the First

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Minister and the last Government. We have discussed the links and

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there has been discussion about Cardiff airport. I have invited the

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owners of Cardiff airport to meet with me shortly because I have been

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concerned about some of the report I've heard in the press. We should

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be trying to talk Cardiff airport up not talk it down. I welcome the

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announcement by the Labour Welsh Government that the steel company

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will be investing �800 million in Wales but their bosses have

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repeatedly said that the prices they have to pay for energy in the

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UK are simply not competitive when compared to what industry pays

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elsewhere. What discussions has she had with the Energy Secretary and

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energy companies to secure a better deal on energy prices for heavy

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industry and to provide an incentive for companies to invest

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in Wales. It was one of the first things I did when I pop -- 1 was

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appointed, I took Vince Cable to discuss the energy prices and all

:10:01.:10:04.

the departments have been focused on the industry's because we want

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to make sure that there are good manufacturing jobs in the future. I

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have read the press release from the Welsh Government and the First

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Minister and he says he was told at a meeting in India that �800

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million has been approved over the next five years for investment and

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I am looking forward to seeing the detail on that because it seems to

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be one of those general announcements without too much

:10:33.:10:43.
:10:43.:10:47.

detail attached to it. As a result of the budget, the Welsh Government

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will benefit from an additional �11.7 billion over the spending

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review period. It will have received nearly �500 million in

:10:56.:11:06.
:11:06.:11:14.

additional funding since the spending review of 2010.

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caravan Tax has hit thousands of hard-working families in Wales.

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Will he spate of the Chancellor and getting to scrap the caravan Tax

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:11:33.:11:33.

and not sit on his hands? The right honourable gentleman should not be

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get so I rated. The Government recognises the importance of the

:11:40.:11:44.

holiday park sector to the tourism industry in Wales and the economy

:11:44.:11:54.
:11:54.:12:00.

and was as a whole. -- the economy in Wales as a whole. Can you

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confirm that although there are 14 Government departments over the

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next four years that will see reductions in spending, spending in

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Wales increases year-on-year despite the fact that the Welsh

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Assembly Government and has spent �385 million last year whilst

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cutting health spending in Wales. Absolutely. The reduction in the

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Welsh health budget is a matter of shame for the Welsh Government.

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There will have had an additional �500 million since the spending

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review in 2010. Is it fair that Welsh churches, charities,

:12:40.:12:44.

pensioners and almost everybody else pay more taxes so that

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millionaires each day for �1,000 less? That is a strange rhetorical

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question but he will know that the reduction in the top rate of tax

:12:54.:13:02.

will not take effect until the end of the public spending freeze. The

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last Government did not see it fit to increase the rate of tax until

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weeks before the last budget. amazed he is not ashamed at the

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impact on some of the most vulnerable in our society. Can we

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in Wales apologised to the Secretary of State. We used to

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think she was on her own at sea in the Cabinet but now they are all at

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sea together. At least Wales has a Labour Government to give us some

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protection from this incompetence. At least Wales can reject this

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disastrous budget by voting Labour in the council elections next

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:13:52.:13:54.

Thursday. I am still waiting for the question. Does the Minister

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agree that with a new law making powers and a �15 million budget,

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the Welsh Assembly Government has both the tools and the money to

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make a real and lasting difference in Wales? Yes, indeed. It is

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vitally important that the Welsh Assembly Government should work

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closely with the Government here in Westminster for the good of the

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people of Wales and I hope we will be seeing a far more joined-up

:14:20.:14:30.
:14:30.:14:37.

approach from the Welsh Assembly Government in this regard. No. Four.

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We are committed to looking at how we can provide these allowances

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elsewhere but the Welsh Government must develop strong and robust

:14:45.:14:55.
:14:55.:14:58.

business cases. Plans fall in motor industry complex are now at a

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critical juncture. We need to know if capital allowances can be

:15:02.:15:05.

delivered or if other tax treatments are a better prospect.

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Can I press her for a meeting with developments so that we can thrash

:15:11.:15:21.
:15:21.:15:22.

Can I just say that the honourable gentleman has worked tirelessly to

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develop these proposals and I really do congratulate him on that.

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We have met on other occasions and I have written to him again today.

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I have said that I am very willing to try to secure a meeting with the

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Chief Secretary to the Treasury. Can I just also say to him that,

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without a business case, the Treasury cannot make decisions on

:15:44.:15:48.

further enhanced capital allowances and, therefore, I would encourage

:15:48.:15:52.

and to discuss this with the Welsh government as well as with our

:15:52.:16:00.

government. With permission, I will answer questions five and eight

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together. My honourable friend continues to have regular

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discussions with ministerial colleagues, Wells government

:16:10.:16:12.

ministers and other interested parties on the funding of broadband

:16:13.:16:20.

in Wales. May I congratulate him on his part in securing �57 million

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for Wales and the broadband provision for Cardiff? Turning to

:16:26.:16:29.

broadband in rural areas, does the Minister should have frustrations

:16:30.:16:36.

of many of my constituents at the speed with which this is being

:16:36.:16:39.

delivered in Wales when compared with authorities such as Cornwall,

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which are really speeding ahead? my honourable friend says, the

:16:45.:16:50.

Government has made a total of �56.9 million available to bring

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faster broadband to Wales. The Welsh government is working on how

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best to employ the funding but we are looking to the Welsh government

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to make an announcement as to its contribution to speed the process.

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I am sure that my honourable friend will be pleased that the

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announcement by BT that some rural communities will have faster access

:17:13.:17:19.

by this summer, including Aberystwyth. The South Wales

:17:19.:17:22.

Chamber of Commerce has called for more ambitious targets for

:17:22.:17:30.

broadband speeds for 2015 at 50 megabytes per second, from the

:17:30.:17:34.

present targets of 30. What is the government doing here to achieve

:17:34.:17:38.

such a target, which would clearly be beneficial for business? Indeed,

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it would be beneficial, Mr Speaker, and I am sure that the honourable

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gentleman will recall that in the Budget as some of �12 million was

:17:46.:17:51.

made available to help transform Cardiff into a Super connected city,

:17:51.:17:56.

which should result in speeds of between 60 megabytes and 100

:17:56.:18:03.

megabytes per second. Cardiff is not Wales, though some people might

:18:03.:18:10.

be under that misapprehension. Countries such as Finland and

:18:10.:18:15.

mortar have introduced a universal service obligation on Internet

:18:15.:18:19.

coverage to ensure that everybody has equal access to the internet

:18:19.:18:23.

and its advantages, irrespective of location. Will the government might

:18:23.:18:28.

look into this and look into it in time for the next communication

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bill. Perhaps it is something that the Welsh government can do under

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the Welsh -- the government of Wales Act. He referred specifically

:18:38.:18:42.

to the South Wales Chamber of Commerce. It is the ambition of

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this Government to ensure that his super-fast broadband is rolled out

:18:46.:18:49.

throughout the United Kingdom by the end of this Parliament. At the

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moment, we are on track. Broadband suppliers have shown a marked

:18:55.:18:59.

reluctance to invest in Wales. Does my honourable friend agree with me

:18:59.:19:03.

that it is important that the people of Wales have the benefit of

:19:03.:19:07.

new technology and that perhaps the Welsh Assembly might use some of

:19:07.:19:10.

its vast underspend to invest in Wales so that everyone has the

:19:10.:19:16.

benefit of broadband? Indeed. As I said in reply to the honourable

:19:16.:19:26.
:19:26.:19:27.

member for Kennedy idiom, -- 4 Ceredigion, we are waiting for

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their commitment in financial terms. Economic growth is a key priority

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for this Government and I have regular discussions with

:19:40.:19:43.

ministerial colleagues on ways to encourage economic growth in Wales.

:19:43.:19:47.

Yesterday, I met with a business advisory group and herds directly

:19:47.:19:51.

from members how this Government's growth policies are helping

:19:51.:19:57.

businesses in Wales to face the current economic challenges. Does

:19:57.:20:02.

the Secretary of State agree that the fact that the recent Budget is

:20:02.:20:07.

taking 95,000 people out of tax altogether in Wales is a big boost

:20:07.:20:16.

for business? I agree entirely with my honourable friend, and it must

:20:16.:20:20.

be very good for those people that we have taken out of tax altogether

:20:21.:20:25.

and the lower paid workers who will benefit from the changes, because,

:20:25.:20:29.

indeed, it will put money directly back in their pockets rather better

:20:29.:20:36.

than Welsh Labour done in Cardiff Bay, under whose auspices council

:20:36.:20:46.
:20:46.:20:48.

tax has doubled in Wales. Considering there is a direct link

:20:48.:20:52.

between money in people's pockets and spending, how will be pressing

:20:52.:20:56.

pay in the public sector encourage economic growth in the poorest

:20:57.:21:03.

parts of the UK? Mr Speaker, when it comes to local pay, our

:21:03.:21:10.

intention is to create a more flexible labour market that is more

:21:10.:21:13.

responsive to their challenging economic conditions that we face.

:21:13.:21:21.

We want to encourage more private sector growth. The Secretary of

:21:21.:21:26.

State things that this Government is interested in growth, if she

:21:26.:21:34.

does, she is living in cloud- cuckoo-land. The Chancellor's

:21:34.:21:39.

excessive intention of cutting too deep and too fast is taking us back

:21:39.:21:44.

into recession. I think that a day's news is disappointing but not

:21:44.:21:51.

totally unexpected. -- that today's news. Britain cannot be immune to

:21:51.:21:57.

what is happening on our doorstep. Italy, Ireland, Belgium, Holland

:21:57.:22:02.

and Portugal are already in recession. Since the Coalition took

:22:02.:22:07.

office, over 630,000 private sector jobs have been created, more than

:22:07.:22:12.

outstripping job losses in the public sector. Private sector

:22:12.:22:18.

employment in Wales rose by 12,000 between the third quarter of 2010

:22:18.:22:27.

and the same quarter in 2011. Speaker, my right honourable friend

:22:27.:22:30.

and I are working with the Secretary of State for Transport

:22:31.:22:34.

and Welsh ministers on the business case for electrocute it --

:22:34.:22:38.

electrification of the South Wales valley Lines. We expect to make an

:22:38.:22:48.
:22:48.:22:52.

announcement in the summer. travel on a route that sometimes

:22:52.:22:57.

takes me through the constituency of the honourable member for the

:22:57.:23:05.

Vale of Glamorgan. Many routes link as far west as Swansea. We are all

:23:05.:23:11.

people from the valleys on connections from the valleys. Will

:23:11.:23:15.

his definition of South Wales be my definition, the definition of the

:23:15.:23:19.

people of the South Wales, because, when it comes to electrification,

:23:19.:23:24.

we are all in this together? indeed, we do recognise the

:23:24.:23:27.

importance of electrification of the South Wales valley Lines to the

:23:27.:23:31.

economy of the Cardiff City region and wider. The Chancellor did, of

:23:31.:23:36.

course,' electrification of those lines as a key infrastructure

:23:36.:23:41.

priority in the Budget. I was delighted that de Prime Minister

:23:41.:23:44.

confirmed his personal commitment when he visited Wales earlier this

:23:44.:23:54.
:23:54.:23:56.

month. With permission, I will answer questions nine and 12

:23:56.:24:03.

together. Number 12 has been withdrawn. I am grateful to the

:24:03.:24:08.

Minister. My right honourable friend has regular discussions with

:24:08.:24:11.

the first minister about a range of transport issues that affect rails

:24:11.:24:20.

-- Wales, most recently last week. Has the Welsh Office than an impact

:24:20.:24:29.

study on the high-speed rail link on Wales. Has there been

:24:29.:24:34.

investigation of the possibility of a high-speed Wales? Indeed, I share

:24:34.:24:40.

the honourable gentleman's concerns about speeds on the line. These are

:24:40.:24:45.

matters that we discuss regularly with the Department for Transport,

:24:45.:24:52.

and will continue to do so. Can I ask the Minister what discussions

:24:52.:24:56.

he has had with the European Parliament about trans-European

:24:56.:25:04.

network funding to enhance the railways? Of we discuss what

:25:04.:25:08.

methods we can adopt in order to improve the funding regime for

:25:08.:25:15.

lines in Wales. We will be looking at funding that is available from

:25:15.:25:20.

the European Community. As we know, economic growth is one of the ways

:25:20.:25:24.

that we will improve the infrastructure of Wales. To improve

:25:24.:25:29.

that infrastructure, we need a modern railway. That means

:25:29.:25:33.

electrification as far as Swansea. Could the Minister tell me what

:25:33.:25:39.

impact assessment has been made of the effect on the commuter and

:25:39.:25:43.

holiday trade of rail electrification to Swansea?

:25:44.:25:46.

commend the honourable lady for her interest in this matter on behalf

:25:46.:25:51.

of a constituents to a man and I can assure her that we remain

:25:51.:25:55.

interested in the litigation of the line and are working closely with

:25:55.:25:59.

the Welsh Assembly Government to develop the business cases of far

:25:59.:26:09.
:26:09.:26:11.

too many noisy private conversations are taking place.

:26:11.:26:15.

the Government recognises that businesses, individuals and

:26:15.:26:18.

families are struggling with the rising cost of fuel, particularly

:26:18.:26:24.

in rural areas. We have eased the burden on motors by approximately

:26:24.:26:26.

�4.5 billion by the abolition of the fuel duty escalator, the

:26:26.:26:36.

introduction of that stabiliser and by cutting fuel duty. Whilst

:26:36.:26:40.

welcoming the cut in fuel duty, the market price of oil Mack is too

:26:40.:26:47.

high, partly because of speculation. The USA is bringing in tough

:26:47.:26:50.

penalties for market manipulation. Will you put pressure on the big

:26:50.:26:59.

oil firms to cut prices at the pumps? As I said, the Government

:26:59.:27:03.

recognises the impact of the rising cost of fuel. However, it should be

:27:03.:27:08.

remembered that the duty increase it -- expected to take place in

:27:08.:27:12.

January has been deferred till August and we have cancelled the

:27:12.:27:15.

inflation increase that was planned for August. This means there will

:27:15.:27:22.

be just one inflationary increase this year. Could the Minister tell

:27:22.:27:27.

us the price of a litre of fuel this time last year and a price

:27:27.:27:32.

today? And would be increased be anything to do with the VAT rise

:27:32.:27:39.

that he voted for? The price in my constituency is approximately �1.40.

:27:39.:27:49.
:27:49.:27:51.

Last year, I would be happy to write him -- right to him. I have

:27:51.:27:55.

regular discussions with ministerial colleagues and other

:27:55.:27:58.

organisations on a range of issues, including the aerospace industry in

:27:58.:28:07.

Wales. While the UK Government has taken a lead in establishing

:28:07.:28:13.

enterprise zones, be honest is now on the Welsh government to make

:28:13.:28:17.

sure -- the responsibility now lies with the Welsh government to make

:28:17.:28:23.

sure that its enterprise zones are a success. I think my honourable

:28:23.:28:26.

friend is absolutely right. As far as enterprise zones are concerned,

:28:26.:28:34.

a great deal depends on what the Welsh Labour government will do. I

:28:34.:28:39.

do say to him that I think it will be crucial to the UK securing work

:28:39.:28:45.

on the next generation of aircraft, because there are some 27,000 large

:28:45.:28:48.

aircraft worth three trillion dollars needed over the next 20

:28:48.:28:52.

years and around 7,000 new helicopters required within the

:28:52.:28:57.

next decade, and a huge potential future market in unmanned at the

:28:57.:29:00.

vehicles. I want to benefit from that demand in the aerospace

:29:00.:29:07.

business in Wales. Is it not the case that the success of the UK

:29:07.:29:12.

aerospace industry is because Government and Industry work

:29:12.:29:18.

together? And is it not the case that is saying that business

:29:18.:29:26.

succeed because Government gets out the the way is nonsense? Over this

:29:26.:29:31.

noise, Mr Speaker, I think that the honourable gentleman was suggesting

:29:31.:29:34.

that Government gets out of the way of business. Indeed, that is

:29:34.:29:39.

exactly what this Government is doing in reducing the bureaucracy

:29:39.:29:44.

that the last Labour government imposed on our industries and also

:29:44.:29:47.

reducing the rate of corporation tax so that our environment can be

:29:47.:29:57.
:29:57.:29:58.

one of the most competitive in the G20. This is about the Budget and

:29:58.:30:07.

women. Hang on! Last night's budget was one of fairness and values, the

:30:07.:30:11.

we had to make some difficult decisions. If we are committed to

:30:11.:30:16.

ensuring that women all over the UK it play a full part in the economic

:30:16.:30:26.
:30:26.:30:30.

In the last quarter, 4,000 women became unemployed. Can she tell me

:30:30.:30:34.

how many women in Wales will benefit from the reduction in

:30:34.:30:43.

taxation from 50 % to 45 %? Will that benefit women in Wales?

:30:43.:30:47.

Despite the recession, the employment rate for women remains

:30:47.:30:55.

historically high. 65.3 % now compared to 53 % in 1971.

:30:55.:30:59.

Employment has fallen more sharply for men during the recession so

:30:59.:31:05.

quite frankly, it will be expected to rise more quickly. This is the

:31:05.:31:10.

4th consecutive set of figures to show employment and economic

:31:10.:31:20.
:31:20.:31:25.

inactivity rising in Wales. Questions to the Prime Minister.

:31:25.:31:34.

The whole House will join me in paying tribute to Sapper, Ray who

:31:34.:31:41.

died on Wednesday 18th April. He was described by all who served

:31:41.:31:44.

with him as his superb silver. His dedication and courage will never

:31:44.:31:54.
:31:54.:31:55.

be forgotten. This morning, I had meetings with ministerial

:31:55.:32:02.

colleagues and I shall have further such meetings later today. I would

:32:02.:32:08.

like to associate myself with the Prime Minister's tribute. In doing

:32:08.:32:17.

so, I want to ask my right honourable friend if he will

:32:17.:32:27.
:32:27.:32:28.

confirm that the actual case for withdrawal from Afghanistan should

:32:28.:32:33.

be about protecting our own soldiers. By the end of 2014, we

:32:33.:32:36.

won't have anything like the troop numbers we have now and they won't

:32:36.:32:42.

be in a combat role. Posts 2014 we believe in having a training role

:32:42.:32:52.
:32:52.:32:52.

with the Afghan army. The speed of the reductions between now and the

:32:52.:32:54.

end of 2014 will be done in accordance with the conditions on

:32:54.:32:58.

the ground and what is right in terms of transition from Allied

:32:58.:33:04.

Control to Afghan control. Parliament el minds is the safety

:33:04.:33:14.
:33:14.:33:17.

and security of our brave armed forces. Can I join the Prime

:33:17.:33:24.

Minister in paying tribute. He carried out his duties with the

:33:24.:33:31.

utmost courage and saved many lives. Our deepest condolences go to his

:33:31.:33:35.

family and friends. Today we had a catastrophic news that Britain is

:33:35.:33:40.

back in recession. I am sure the Prime Minister has spent the last

:33:40.:33:49.

24 hours thinking of an excuse so what is his excuse this time?

:33:49.:33:55.

are very disappointing figures. I don't seek to excuse them all try

:33:55.:34:01.

to explain them away and let me be absolutely clear. There is no

:34:01.:34:06.

complacency at: this Government in dealing with what is a very tough

:34:06.:34:12.

situation that has just got tougher. It is very difficult of recovering

:34:12.:34:18.

from the deepest recession in living memory a company as it was

:34:18.:34:23.

by a debt crisis. Our banks had too much debt, our households had too

:34:23.:34:26.

much debt and our Government had too much debt. We have to rebalance

:34:27.:34:32.

our economy. We need a bigger private sector and more investment.

:34:32.:34:37.

This is difficult work but we will stick with our plans and stick with

:34:37.:34:41.

the lower interest rates and do everything we can to boost

:34:42.:34:50.

competitiveness and jobs in our country. Typical of this arrogant

:34:50.:34:57.

Prime Minister. The reality is, this is a recession made by him and

:34:57.:35:04.

the Chancellor in Downing Street. Over the last 18 months, our

:35:05.:35:11.

economy has shrunk. This is now we slow recovery from a recession than

:35:11.:35:16.

the 1930s. The reality is that families and businesses are paying

:35:16.:35:21.

the price for his arrogance and complacency. Why doesn't he admit

:35:21.:35:28.

it? It is his catastrophic economic policy, cutting too far and too

:35:28.:35:34.

fast, that has landed us back in recession. There is not a single

:35:34.:35:39.

business organisation or international body that thinks

:35:39.:35:44.

these problems emerged in the last 24 months. The debt crisis has been

:35:44.:35:48.

long in the making. The failure to regulate our banks has been long in

:35:48.:35:52.

the making. The Government of overspending has been long in the

:35:52.:35:57.

making. This is a tough situation that the economy is in it but the

:35:57.:36:01.

one thing we must not do is to abandon public spending and deficit

:36:01.:36:05.

reduction plans because the solution to wait debt crisis cannot

:36:05.:36:15.
:36:15.:36:23.

be more debt. -- to a debt crisis. No business organisation suggests

:36:23.:36:31.

the follow that course. It is all bluster. His plan has failed. That

:36:31.:36:36.

is the reality. They were the people who said that Britain was a

:36:36.:36:40.

safe haven. The Chancellor said on Monday and we are back in recession.

:36:40.:36:45.

He was the person who said we were out of the danger zone and this is

:36:45.:36:53.

what has happened. The complacent, arrogant, posh boys just don't get

:36:53.:37:02.

it. Let's turn from the economic disaster to the political disaster

:37:02.:37:06.

that is the Culture Secretary. On the evidence published yesterday,

:37:06.:37:10.

we know that throughout the time the culture secretary was supposed

:37:10.:37:16.

to be acting in an impartial manner, there was a constant flow of

:37:16.:37:20.

information to News Corporation about statements to be made in this

:37:20.:37:25.

House in advance, his private discussion with the regulators and

:37:25.:37:31.

his discussion with opposing parties. Having seen the one and 63

:37:31.:37:35.

pages published yesterday, is the Prime Minister trying to tell us

:37:35.:37:38.

that the Secretary of State was acting as he should have done in a

:37:39.:37:48.
:37:49.:37:49.

transparent, impartial and fair manner? Let me finish off on the

:37:49.:37:59.
:37:59.:38:00.

economy... Order! We will not let anyone forget who got us into this

:38:00.:38:10.
:38:10.:38:11.

mess in the first place. More spending, more borrowing, more debt,

:38:11.:38:16.

that is what caused these problems. It cannot be the solution to these

:38:16.:38:24.

problems. Now let me turn to the Leveson Inquiry. I set up the

:38:24.:38:30.

Leveson Inquiry. The terms of reference were agreed by the leader

:38:30.:38:35.

of the Liberal Democrat Party and the leader of the Labour Party. I

:38:35.:38:38.

believe that to step in and try and prejudge that inquiry would be

:38:38.:38:48.
:38:48.:38:59.

wrong. Let me be clear, Lord Justice Leveson has has made that

:38:59.:39:09.
:39:09.:39:11.

precise point this morning. Let me read to the House what he has said.

:39:11.:39:16.

Let's hear what the Prime Minister has to say. He said this this

:39:16.:39:21.

morning. "it is very important to hear every side of the story before

:39:21.:39:28.

drawing conclusions. Although I have seen requests for other

:39:28.:39:32.

inquiries and investigations and of course I don't seek to her

:39:32.:39:35.

constrained Parliament, but it seems to me that the better course

:39:35.:39:45.
:39:45.:39:47.

is to allow this inquiry to proceed". He should listen to the

:39:47.:39:51.

inquiry having set it up. Lord Justice Leveson is responsible for

:39:51.:39:55.

a lot of things but he is not responsible for the integrity of

:39:55.:40:00.

the Prime Minister's Government. In case he'd forgotten, that is his

:40:00.:40:07.

responsibility. It beggars belief that the Prime Minister can defend

:40:07.:40:12.

the Culture Secretary because he was not changing this, he was

:40:12.:40:16.

helping the bid by News Corporation. Two days before the statement to

:40:16.:40:20.

the House on 25th January, the Culture Secretary's office was not

:40:20.:40:24.

only colluding with News Corporation to provide information

:40:24.:40:30.

in advance, they were hatching a plan to ensure it would be game

:40:30.:40:34.

over for the Opposition to the bid. Does the Prime Minister really

:40:34.:40:40.

believe that is how a judge and his advisers are supposed to act?

:40:40.:40:45.

Leader of the Opposition does not think what Lord Leveson says this

:40:45.:40:51.

morning matters. Let me remind him what he said yesterday about the

:40:51.:41:00.

Leveson Inquiry. He said, "I think it is right that the Leveson

:41:00.:41:07.

Inquiry takes its course. The most important thing is that the Leveson

:41:07.:41:12.

Inquiry gets to the bottom of what happened, of what Labour did, of

:41:12.:41:17.

what the Conservatives did, and we reach a judgement." isn't it a

:41:17.:41:22.

typical of the right honourable gentleman. In the morning, he sets

:41:22.:41:28.

out his clear position but in the afternoon, he cannot resist the

:41:28.:41:38.
:41:38.:41:46.

passing political bandwagon. Order. The Leader of the Opposition must

:41:46.:41:56.
:41:56.:41:58.

be heard. Totally pathetic answers. He is the Prime Minister. If he

:41:58.:42:02.

can't defend the conduct of his own ministers, they should be out the

:42:02.:42:09.

door, he should fire them. He does not even tried to defend the

:42:09.:42:16.

Secretary of State. The Secretary of State told this House on 3rd

:42:16.:42:21.

March, "today, we are publishing all the concert -- consultation

:42:21.:42:28.

documents, all of the exchanges between my department and News

:42:28.:42:36.

Corporation." but he did not. The Prime Minister does not defend him

:42:36.:42:39.

over giving confidential information to one party in the

:42:39.:42:44.

case. He does not defend him over collusion. Is he really going to

:42:44.:42:51.

defend him about not being straight with the House of Commons?

:42:51.:42:54.

Culture Secretary has my full support for the excellent job he

:42:54.:43:04.

has done. The Culture Secretary will be giving a full account of an

:43:04.:43:08.

self in this House of Commons this afternoon and in front of the

:43:08.:43:12.

Leveson Inquiry and he will give a good account of himself for this

:43:12.:43:18.

reason. That in judging this important bid, the Culture

:43:18.:43:22.

Secretary sought independent advice from independent regulators cost at

:43:22.:43:29.

every stage, although he did not need to. The Culture Secretary took

:43:29.:43:33.

that independent advice at every stage. The way the culture

:43:33.:43:38.

secretary has dealt with this issue is in stark contrast to the

:43:38.:43:45.

Government's to which she was a member. -- to which he was. While

:43:45.:43:50.

his Culture Secretary remains in place, while he refuses to come

:43:50.:43:53.

clean on his and the Chancellor's meetings with Rupert Murdoch, the

:43:53.:44:02.

Shadow of sleaze will Hanover this Government. It is a pattern with

:44:02.:44:08.

this Prime Minister. Andy Coulson, Rebekah Brooks. When is he going to

:44:08.:44:13.

realise, it is time to stop putting his cronies before the interests of

:44:13.:44:23.
:44:23.:44:24.

the country. He called for an independent judicial required a --

:44:24.:44:32.

inquiry. The fact is, the problem of closeness between politicians

:44:32.:44:36.

and media proprietors had been going on fears and it is this

:44:36.:44:43.

Government that is going to sort it out. -- going on for years. Whether

:44:44.:44:48.

it is cleaning up our financial system, dealing with our debts, I

:44:49.:44:53.

don't duck my responsibilities. What a pity he cannot live up to

:44:53.:45:03.
:45:03.:45:20.

Is my right honourable friend aware of the very good to know news on

:45:20.:45:27.

the manufacture ring sector in Lincoln where there has been an

:45:27.:45:37.
:45:37.:45:37.

increase in turnover in local businesses? Would my right

:45:37.:45:41.

honourable friend accept my personal invitation to visit

:45:41.:45:47.

Lincoln and see for himself the excellent success it is enjoying?

:45:48.:45:51.

am grateful for the invitation and I will try to take it up. As I said

:45:51.:45:59.

earlier, what is happening in our economy, apart from the very

:45:59.:46:03.

disappointing news today, is a rebalancing that is taking place,

:46:03.:46:08.

which needs to take place, in terms of manufacturing investment,

:46:08.:46:10.

exports and the Government might getting behind that with more

:46:11.:46:20.
:46:21.:46:24.

investment in apprenticeships and technical hubs at our universities.

:46:24.:46:31.

Mr Speaker, on Monday, the Prime Minister said that he was going on

:46:31.:46:39.

and economic rescue mission -- an economic rescue mission as a is it

:46:39.:46:44.

not the case that that has failed spectacularly? We saw a 7%

:46:44.:46:48.

contraction of our GDP, to bigger even than what happened in America.

:46:48.:46:53.

It is worth remembering that we had the biggest bang bail-out anywhere

:46:53.:46:57.

in the world. Getting out of the recession, the financial crisis and

:46:57.:47:04.

the debt crisis is difficult, painstaking work. But this

:47:04.:47:10.

Government is committed to doing just that. Last week, I met at the

:47:10.:47:12.

Chief Executive of the fourth largest manufacturing group in the

:47:13.:47:19.

UK, who have a substantial factory in Burnley. He has been instructed

:47:19.:47:23.

by his United States board to increase the turnover of his UK

:47:23.:47:26.

operations so as to take advantage of the Government's industrial

:47:26.:47:32.

strategy. He is concerned about the lack of skills. Can my right

:47:32.:47:41.

honourable friend at assured me that investment -- investment in

:47:41.:47:45.

apprenticeships will increase in the coming years? If any Member of

:47:45.:47:49.

Parliament wants to talk about manufacturing success or business

:47:49.:47:53.

success in their constituency, they are shouted down by the opposition.

:47:54.:47:58.

All they wanted here is bad news adds to talk our economy down. We

:47:58.:48:01.

are investing in skills, we are putting more money into

:48:01.:48:05.

apprenticeship schemes, we are putting money into technical

:48:05.:48:15.
:48:15.:48:15.

colleges. Her I was looking at growth plans in Airbus this week,

:48:15.:48:22.

and it is good to hear his good news. The Chancellor said in 2008,

:48:22.:48:27.

once you have a downturn -- downturn, you cannot cut public

:48:27.:48:34.

expenditure. Will he go back on his policy of cutting too far and too

:48:34.:48:43.

fast? Well-read! The truth is we inherited from the party opposite a

:48:43.:48:48.

budget deficit of 11%. The budget deficit we inherited was bigger

:48:48.:48:53.

than Greece, than Spain, than Portugal. If you do not deal with

:48:53.:49:00.

your debt and your deficit, you will never keep interest rates low.

:49:00.:49:04.

It is low interest rates that offer was the best prospect of getting

:49:04.:49:14.
:49:14.:49:23.

out of the situation we are in. Order! Thank you, Mr Speaker. At

:49:23.:49:30.

least 500,000 children died from malaria last year. May I thank the

:49:30.:49:33.

Prime Minister for his personal commitment to combating this

:49:33.:49:38.

disease and will he join me in recognising the international

:49:38.:49:46.

leadership which British scientists, aid workers, and volunteers show in

:49:46.:49:53.

combating malaria? I am very grateful to join the honourable

:49:53.:50:01.

gentleman and to wish his constituents well. He is right to

:50:01.:50:07.

raise the issue. 15,000 children die every week from what is a

:50:08.:50:11.

preventable illness. That is why I am proud of the fact that Britain

:50:11.:50:19.

is leading on this issue, is putting money into bed nets and the

:50:19.:50:23.

scientific advances that he is talking about. I think we're right

:50:24.:50:33.

to pursue it. Does this out of touch Prime Minister still believe

:50:33.:50:38.

that the British economy is out of the dangers on? Look, one of the

:50:38.:50:42.

biggest problems we faced on taking office was the danger that

:50:42.:50:46.

financial markets would take a view of Britain at likely have taken of

:50:46.:50:51.

Greece, Spain or Portugal, where interest rates were rising. The

:50:51.:50:54.

fact that we have such an low interest rates in Britain

:50:54.:50:59.

demonstrates that we have credibility. These are difficult

:50:59.:51:02.

decisions to deal with public spending, but they are the right

:51:02.:51:06.

decisions, not least because the Shadow Chancellor once said that

:51:06.:51:10.

sad mark interest rates are the market economic credibility.

:51:10.:51:18.

head teachers of high schools in Calder Valley both very much

:51:18.:51:26.

welcome the Government's educational reforms. They did not

:51:26.:51:29.

qualify for the BSF under the previous government because they

:51:29.:51:38.

attained too highly. Can the Prime Minister tell us will when they can

:51:38.:51:43.

expect an announcement on funding? Compared with the first two

:51:43.:51:47.

parliaments of the party opposite, we are investing more in school

:51:47.:51:52.

building than they did. I think the figure is something along the lines

:51:53.:51:56.

of �17 billion during the Spending Review period. There are

:51:57.:52:03.

opportunities for new classrooms and new buildings. I am sure that

:52:03.:52:06.

the Secretary of State for Education will be in touch with him.

:52:06.:52:14.

Does the Prime Minister agree with a member from Mid Bedfordshire when

:52:14.:52:19.

she said that the Prime Minister and Chancellor... Order! Let's hear

:52:20.:52:25.

the question. When she said they were posh boys showing no

:52:25.:52:32.

compassion for the ways and under - - for the lives of others, and that

:52:32.:52:36.

this is farther evidence that he is out of touch and why we are in a

:52:36.:52:46.
:52:46.:52:47.

double-dip recession? I agree with him about many things. Over the

:52:47.:52:53.

last two years, UK exports have grown by 23%, with faster growth to

:52:53.:53:03.
:53:03.:53:03.

Brazil, Russia, India and China. Will he join with me on

:53:03.:53:13.

congratulating the 150 winners of the award for business. I certainly

:53:13.:53:22.

join him in that. When we look at some markets around the world, our

:53:22.:53:28.

export performance combat compared with 2009, is up by as much as 60%

:53:28.:53:33.

in some of those markets. We have to also remember our old friends

:53:33.:53:38.

and that we export more to the Republic of Ireland than we do to

:53:38.:53:42.

Brazil, Russia, India and China combine. We need to do much more

:53:42.:53:48.

work to get into the fast-growing markets in the world. Recently, the

:53:48.:53:52.

Prime Minister conceded that the Government had made an important

:53:52.:53:58.

mistake in the handling of the fuel crisis. Can I ask him: Would it not

:53:58.:54:03.

be a positive step in correcting that mistake if the Government were

:54:03.:54:07.

to scrap -- scrap the 3p increase in August in order to help

:54:07.:54:12.

motorists, haulage companies and hard-pressed families in the United

:54:12.:54:18.

Kingdom? First of all, the Government has used around �4

:54:18.:54:23.

billion of budget money to keep petrol prices down. They are about

:54:23.:54:26.

six pence lower than they would be under the plans of the party

:54:26.:54:30.

opposite. Let me update the honourable gentleman, and indeed

:54:31.:54:35.

the House, on the issue of the fuel strike. It now looks as if there is

:54:35.:54:39.

a longer period of time before any potential strike could take place.

:54:39.:54:43.

I am determined that we use that time to make sure there is every

:54:43.:54:47.

piece of resilience in place. The plans we inherited would have

:54:47.:54:51.

allowed the military to provide maybe 10% of our fuel needs. If we

:54:51.:54:57.

have now managed to lift that is something like 60 or 70%. We are in

:54:57.:55:00.

a better place now because of the proper emergency planning if that

:55:00.:55:03.

this government has done, rather than the party opposite, he just

:55:03.:55:08.

crossed their fingers and hope for the best from the trade unions.

:55:08.:55:15.

Next Wednesday, my mother will celebrate her 100th birthday.

:55:15.:55:21.

Living, as he does, five minutes from the Olympic Stadium, she has

:55:21.:55:25.

agreed to be the pacemaker for Usain Bolt, in order to give the

:55:25.:55:32.

other athletes a chance. Will my right honourable friend call on the

:55:32.:55:34.

indomitable spirit of former land army girls like my mother and

:55:34.:55:41.

encourage our Olympic athletes to go for gold? I will certainly do

:55:41.:55:45.

that. I have written to her to congratulate her on this fantastic

:55:45.:55:50.

milestone, and I am sure that, as she speeds past Usain Bolt, she

:55:50.:55:56.

will turn round and reflect that, indeed, the only way is Essex.

:55:56.:55:59.

delighted the Prime Minister has written to her. That makes two of

:55:59.:56:08.

us. The Prime Minister has spent plenty of time getting close to

:56:08.:56:18.
:56:18.:56:18.

NewsCorp in return for their support. I can wait! He is well

:56:18.:56:24.

qualified to call off up -- to answer this question. When Alex

:56:24.:56:30.

Salmond agreed to act as a lobbyist for NewsCorp, was he acting in self

:56:30.:56:34.

interest or in the interests of Scotland? I think Alex Salmond can

:56:34.:56:38.

answer for himself. I think that this is another issue that the

:56:38.:56:46.

Leveson Inquiry, which will interview all the politicians,

:56:46.:56:50.

including all sorts of people who got close to News International

:56:50.:56:56.

over the years, and I think that on all sides of the House, there is an

:56:56.:56:59.

needs to admit that we all got too close to Rupert Murdoch. On that

:56:59.:57:04.

basis, I am sure that Lord Levison will make some important

:57:04.:57:09.

recommendations. Has the Prime Minister seen the research

:57:09.:57:18.

published today by the Taxpayers' Alliance which shows that there are

:57:18.:57:24.

3097 town-hall employees earning more than �100,000.52 earning more

:57:24.:57:29.

than �250,000? My constituents cannot understand such exorbitant

:57:29.:57:36.

salaries. What can we do about it? I think my honourable friend is

:57:36.:57:40.

entirely right to raise this issue. The important thing we have done is

:57:40.:57:44.

make completely transparent the pay in our town halls and in local

:57:44.:57:49.

government. Sadly, I believe there is still one local council, a

:57:49.:57:52.

Labour-controlled council in Nottinghamshire, that is not making

:57:52.:57:57.

this information available. Every council should be transparent about

:57:57.:58:05.

how they spend council tax payers' money. Last year, the Prime

:58:05.:58:09.

Minister said to people warning him of the risk of a double-dip

:58:09.:58:12.

recession should apologise. Now that he has delivered one, should

:58:12.:58:17.

he not apologise? The point I want to make is this: We faced a very

:58:17.:58:22.

difficult situation with an 11% budget deficit. If we had listened

:58:22.:58:28.

to the plans of the party opposite and spent more, borrowed more, that

:58:28.:58:32.

would have dominate the debt crisis worse. How can the answer to such a

:58:32.:58:36.

crisis be more borrowing? That is a question the party opposite can

:58:36.:58:43.

never run so. After weeks of ducking and diving, Ken Livingstone

:58:43.:58:53.
:58:53.:58:56.

has given a partial publication of his tax affairs. He has refused to

:58:56.:58:59.

publish the accounts of the company he set up to a boy tax. Does he

:59:00.:59:06.

agree with me that Ken Livingstone has become the artful Dodger?

:59:06.:59:09.

think my honourable friend speaks for all of London when he makes

:59:09.:59:14.

this point. Ken Livingstone hours some proper transparency about this

:59:15.:59:24.
:59:25.:59:34.

company and his tax bill. -- owes. I hardly ever agree with Alan Sugar,

:59:34.:59:38.

but I agree with him about Ken Livingstone. Now that the Prime

:59:38.:59:41.

Minister has admitted that he has created the economic mess that the

:59:41.:59:51.

country is in, can I be helpful to him and suggest that he drops his

:59:51.:59:55.

ridiculous proposals for regional pay cuts and extends the capital

:59:55.:59:58.

programme to schools in Coventry and the West Midlands? As I said,

:59:58.:00:05.

we are spending more on schools than either of the first to back

:00:05.:00:09.

Labour parliament. I am happy for ministers to look again at the case

:00:09.:00:12.

in his constituency and see what can be done. If I also hope he will

:00:12.:00:18.

be joining me in inviting people on the third of May to vote for a

:00:18.:00:24.

mayor for Coventry. Every year, people donate millions to charities.

:00:24.:00:27.

They do it because they want to help others worse off than

:00:27.:00:32.

themselves. I would call these actions by members of the public or

:00:32.:00:36.

honourable, kind and selfless. We have all heard recently that some,

:00:36.:00:41.

not all, but some of our wealthy citizens what we want to donate to

:00:41.:00:46.

charity if they can reduce their tax bill. Thus the Prime Minister

:00:46.:00:55.

think their motors are honourable, I think we should support people

:00:56.:01:05.

want to give to charity. There were a number of limits to reliefs in

:01:05.:01:09.

the budget. We identified the potential problems for charities

:01:09.:01:12.

and the Chancellor will consult widely about how we can make sure

:01:12.:01:17.

we encourage charities and encourage what they do in our

:01:17.:01:25.

country. The Prime Minister's dismissive response to the fact the

:01:25.:01:35.
:01:35.:01:37.

UK is back in recession, sure he just not -- should he just sat his

:01:37.:01:44.

Culture Secretary? -- sack. There is nothing dismissive about my

:01:44.:01:49.

reply and the economy all what I think we need to do. We are in a

:01:49.:01:55.

difficult economic situation in Britain. Recessions in Denmark,

:01:55.:02:00.

Italy, Spain, that is what is happening across the Continent that

:02:00.:02:04.

we trade with. What is essential is that we take every step we can to

:02:04.:02:09.

help our economy out of recession. We need to invest in

:02:09.:02:14.

apprenticeships, cutting business tax, prioritise investment in our

:02:14.:02:24.
:02:24.:02:26.

infrastructure. We are doing all of these things. Far from being

:02:26.:02:29.

dismissive, I think the Prime Minister acknowledged that the

:02:29.:02:33.

figures were disappointing. But would he agree with me that getting

:02:33.:02:43.
:02:43.:02:44.

out of a debt crisis, you don't spend more money. My right

:02:44.:02:50.

honourable friend is right. No international body is making that

:02:50.:02:56.

case and no business organisation is making that case. While these

:02:56.:03:01.

figures are disappointing, we must not give up the low interest rates

:03:01.:03:05.

because that would be the way to land our economy and the problems

:03:06.:03:12.

they left it in. In just two years, the economy doesn't eat the session

:03:12.:03:22.
:03:22.:03:31.

and the Government is the been sleaze. Same old Tories. Order.

:03:31.:03:35.

That is the end of Prime Minister's Questions but we are now going to

:03:35.:03:41.

here what David Cameron describes as a full account of himself from

:03:41.:03:51.
:03:51.:04:02.

the culture secretary. The statement is from the Culture

:04:02.:04:12.
:04:12.:04:19.

Secretary. With permission, I would like to make a statement following

:04:19.:04:22.

yesterday's developments at the Leveson Inquiry. Although I intend

:04:22.:04:28.

to respond fully to allegations about my conduct, that of my

:04:29.:04:33.

apartment, when I present my evidence, I believe it is important

:04:33.:04:37.

to update the House on actions that have been taken as a result of

:04:37.:04:47.
:04:47.:04:48.

evidence released yesterday. We are 273 days into a process that's

:04:48.:04:53.

first stage will last until October. This is not the time to jump on a

:04:53.:05:03.
:05:03.:05:09.

political bandwagon. What the public want to hear is not my views

:05:09.:05:13.

but the views of Lord Justice Leveson when he has considered all

:05:13.:05:20.

the evidence. I do think it is right to set The Record state --

:05:20.:05:28.

straight on a number of issues. Specifically, the merger of News

:05:28.:05:38.
:05:38.:05:39.

Corporation with BSkyB. I have a strictly followed due process. I

:05:39.:05:45.

have seek the advice of independent regulators and after careful

:05:45.:05:50.

consideration, I acted on their advice. I have published all advice

:05:50.:05:56.

I have received together with correspondence between myself and

:05:56.:06:04.

News Corporation. Including details of all meetings. As part of this

:06:04.:06:09.

process, my officials and I have engaged with News Corporation as

:06:10.:06:14.

well as other interested parties, both supporters and opponents of

:06:14.:06:22.

the merger. Transcripts of conversations and texts publics

:06:22.:06:27.

yesterday -- published yesterday, have been alleged to indicate there

:06:27.:06:33.

was a back channel through which News Corporation were able to

:06:33.:06:43.
:06:43.:06:44.

influence my decisions. This is categorically not the case. Order.

:06:44.:06:54.
:06:54.:06:54.

The statement must be heard. There will be a full opportunity for

:06:54.:06:58.

questions but it is right and proper that the statement should be

:06:58.:07:05.

heard with courtesy. However, the volume and tone of those

:07:05.:07:11.

communications were clearly not appropriate. Today, Adam Smith has

:07:11.:07:21.
:07:21.:07:23.

resigned as my special adviser. Although Adam Smith accepts that he

:07:23.:07:27.

overstepped the mark on this occasion, I want to set on record

:07:27.:07:32.

that I believe he did so unintentionally and do not believe

:07:32.:07:37.

that he was doing anything more than giving advice on process. I

:07:37.:07:47.
:07:47.:07:49.

believe him to be somebody of integrity and decency. I only saw

:07:49.:07:53.

the transcripts of these Communications yesterday. They did

:07:53.:08:00.

not influence my decisions in any way at all. I insisted on hearing

:08:00.:08:03.

the advice of independent regulators at every stage. I will

:08:03.:08:08.

give my full record of events when I give evidence to Lord Justice

:08:08.:08:12.

Leveson but I would like to resolve this issue as soon as possible

:08:12.:08:19.

which is why I have returned to -- written to Lord Justice Levison

:08:20.:08:29.
:08:30.:08:31.

asking for my evidence to be brought forward.

:08:31.:08:37.

That was the Culture Secretary, Jeremy Hunt, trying to explain self.

:08:37.:08:41.

We will talk about the questions leucine in a moment but let's deal

:08:41.:08:45.

with that statement. He was coming under great pressure to resign

:08:45.:08:51.

yesterday. He said his special adviser has resigned. Does that

:08:51.:09:01.
:09:01.:09:01.

Keegan and his job? I would think so. If he has committed

:09:02.:09:06.

inappropriate behaviour, I think any Minister would then have to

:09:06.:09:10.

look at their position. But listening to what he just said, it

:09:10.:09:19.

does not appear so. You get into this difficult situation about how

:09:19.:09:23.

responsible you are for the actions of other people. I think he should

:09:23.:09:26.

be given his chance to speak to Lord Justice Leveson and put

:09:26.:09:36.
:09:36.:09:41.

forward his views. You are a former special adviser. Jeremy Hunt's

:09:41.:09:47.

special adviser has resign today. What you make of that news? Jeremy

:09:47.:09:57.
:09:57.:09:59.

Hunt looks to me like a dead man walking. In my experience in the

:09:59.:10:04.

last Government, in anything that had a quasi-judicial components to

:10:04.:10:12.

it, special advisers would play no part in it at all. In this case, we

:10:12.:10:17.

know very clearly that Jeremy Hunt's special adviser was up to it

:10:17.:10:23.

-- in it up to his neck. I find it difficult to imagine that any

:10:23.:10:26.

special adviser conducting those sorts of discussions would not be

:10:26.:10:30.

doing it without making sure his Secretary of State knew what he was

:10:30.:10:36.

up to in the first place. It seems unbelievable to me. Let's move on

:10:36.:10:45.

to the questions. We got the announcement this morning about the

:10:45.:10:50.

recession. David Cameron came out fighting. He pointed the blame at

:10:50.:10:55.

Labour for the mess we are in. did come out fighting but can I

:10:55.:11:00.

just say that the first thing was the sad news that up we, the Welsh

:11:00.:11:10.
:11:10.:11:10.

people, have lost another person to the war in Afghanistan. It is

:11:10.:11:14.

tragic for everybody but for the families involved, I just want to

:11:14.:11:24.
:11:24.:11:25.

say that we recognise that. I thought Ed Miliband was on good

:11:25.:11:32.

form. But I think David Cameron was very robust in his defence. We are

:11:32.:11:40.

talking about the double-dip recession. We have been in a much

:11:40.:11:45.

bigger recession under the previous administration. Times are tough. It

:11:45.:11:52.

is about sticking to a plan and making it work. David Cameron

:11:52.:11:58.

started the week off making some sort of a fight back saying his

:11:58.:12:05.

Government had a difficult month but that has been extended.

:12:05.:12:09.

Governments tend to get into these sort of patterns where one piece of

:12:09.:12:16.

bad news generates another piece of bad news. The problem for David

:12:16.:12:21.

Cameron in Prime Minister's Questions was this, here he is now,

:12:21.:12:25.

Prime Minister for two years already and heading into the third

:12:25.:12:29.

and it is harder and harder for him to rely on pointing the finger at

:12:29.:12:35.

what he inherited to explain the position that he is in. He did not

:12:35.:12:40.

stand in the last election, saying, vote for me and in two years' time

:12:40.:12:50.

I will still be blaming the slot. It is a trip all politicians use. -

:12:50.:12:59.

- trick. You can only use that line it so often. Any Prime Minister

:12:59.:13:08.

would have been expected to be in a better position today than he's in.

:13:08.:13:12.

I felt today that he stuck to that line because it was the best line

:13:12.:13:16.

available to him. I felt it was pretty thin to start with and very

:13:16.:13:24.

thin when a finish. Let's move on to Welsh questions. While we were

:13:24.:13:28.

watching it, you were praising the Secretary of State for Wales for

:13:28.:13:35.

her performance. She came under some heavy attack but I thought she

:13:35.:13:43.

put up a good performance today. Very feisty. Very direct. I thought

:13:43.:13:49.

she was very fair in pointing way she felt the relationship with the

:13:49.:13:56.

Welsh Government needed to be. The good things and the bad things.

:13:56.:14:00.

remarked that there were not many Welsh Conservatives asking

:14:00.:14:10.
:14:10.:14:15.

questions. That is what surprised me most. As the half-hour wore on,

:14:15.:14:19.

I was asking myself where is the Welsh Conservative Party? One

:14:19.:14:24.

Conservative backbencher from Wales took part in questions today. The

:14:24.:14:29.

Secretary of State was under heavy attack from the Labour side. I just

:14:29.:14:39.
:14:39.:14:39.

wondered where her troops were. Looking ahead to the local

:14:39.:14:49.
:14:49.:14:52.

elections, a quick word about what going to happen. Our people

:14:52.:14:55.

interested in these elections? People are very concerned about the

:14:55.:15:00.

local issues. I listened to the First Minister on Radio Wales this

:15:00.:15:03.

morning saying that every door he was knocking on, people was --

:15:03.:15:08.

people were saying how dreadful things were in England and they

:15:08.:15:11.

were grateful they were lent -- living in Wales and none of this

:15:11.:15:17.

was happen fast -- happening. On my patch, people wanted to know if

:15:17.:15:22.

Withybush Hospital is safe. They are worried about education and

:15:22.:15:32.
:15:32.:15:35.

will sorts of things. Not one I am sure Mark will tell you.

:15:35.:15:38.

things that people say to me are very much to do with what matters

:15:38.:15:43.

to them in their own lives. They talk about traffic, parking,

:15:43.:15:47.

rubbish, environment, the school their child goes to. All of these

:15:47.:15:50.

things are part of what local government provides. It is

:15:50.:15:54.

sometimes difficult to get people into that conversation, but once

:15:54.:15:58.

you start it, it is easy for people to see why these elections really

:15:58.:16:02.

matter. We will come back here before we depart this afternoon. We

:16:02.:16:12.
:16:12.:16:29.

It is locked to look back at -- local election time. Earlier, Mark

:16:29.:16:32.

spoke to the local government minister.

:16:32.:16:37.

Everybody knows that the time is not ideal for you. How worried are

:16:37.:16:41.

you about the impact of that on the Welsh election? It is always

:16:41.:16:44.

difficult when you are in government, taking responsibility

:16:44.:16:54.
:16:54.:16:56.

and taking difficult decisions. We have delivered new facilities and

:16:56.:17:00.

cuts in council tax. Wherever the Lib Dems have been in power we have

:17:00.:17:03.

delivered the best services for local people and kept the council

:17:03.:17:07.

tax low. That is what we are focusing on and it is having a good

:17:07.:17:12.

reception. If people do feel sick - - dissatisfied by the UK Government,

:17:12.:17:18.

we hope that people will put that to one side and focus on what this

:17:18.:17:22.

is as a -- what this is about - who will look after your local codes of

:17:22.:17:27.

the next five years. You talk a lot about education, and that seems to

:17:27.:17:30.

be the central point of your campaign this time, is that there?

:17:30.:17:37.

Yes. We have the pupil premium, which we got after negotiating with

:17:37.:17:43.

the Welsh government here. �450 for every disadvantaged people in Wales.

:17:43.:17:46.

Where we are running the council or have an influence, we have invested

:17:47.:17:51.

more on education and have helped to raise the standard of education.

:17:51.:17:58.

I think it is a very good, strong suit for the bends, and it is one

:17:58.:18:01.

where emphasising on the doorstep. What can you offer people on

:18:01.:18:06.

council tax in particular? Cardiff and Wrexham have the two lowest

:18:06.:18:14.

council tax rises of anywhere in Wales. We have frozen council tax

:18:14.:18:18.

this year. I think if people want to keep their council tax down, and

:18:18.:18:21.

the recognised people are struggling in these difficult times,

:18:21.:18:24.

they need to vote for Wells Liberal Democrats because we have the best

:18:24.:18:31.

record. Another issue which is always important to people is

:18:31.:18:35.

housing, getting access to it. Does your heart -- does your party had

:18:35.:18:39.

any particular ideas about how to make that? We are putting more

:18:39.:18:43.

money into affordable housing and increasing the existing housing

:18:44.:18:50.

stock -- stock. We're having to invest from our own resources in

:18:51.:18:54.

houses in Cardiff and Wrexham. We are pitting �18 million into

:18:54.:18:59.

Swansea over the next three years, and creating jobs as a result of

:18:59.:19:05.

that. We intend to increase the number of affordable homes and to

:19:05.:19:09.

tackle the huge shortage of housing which everybody is facing across

:19:09.:19:15.

Wales. How will you stimulate business growth? Lib Dem councils

:19:15.:19:19.

have been very favourable to businesses. In Cardiff, we have the

:19:19.:19:28.

new business enterprise zone, in Swansea, we have improvement

:19:28.:19:33.

districts in the city centre which helps businesses to lower their

:19:33.:19:38.

costs and attract new custom. We're investing in the city centre of

:19:38.:19:44.

Cardiff and Swansea. Wrexham has turned round its town-centre and it

:19:44.:19:49.

is unrecognisable from when the Lib Dems took over. Clearly, some of

:19:49.:19:52.

your own members have been disaffected by what has happened on

:19:52.:19:57.

a UK level, will that undermine your campaign? It is a separate

:19:57.:20:02.

issue. We have to concentrate more on the seats that we hold and put

:20:02.:20:06.

all our efforts into that. Yes, it has been difficult because we are

:20:06.:20:11.

in government and we have lost some members because of that, but we are

:20:11.:20:14.

focusing on the quality of candidates that we are putting

:20:14.:20:16.

forward and we are delivering, hopefully, a better service to

:20:16.:20:21.

people. We hope to maintain and retain a large number of the

:20:21.:20:27.

councils that we have. Thank you for now.

:20:27.:20:32.

As we heard earlier, my two guests have been on the election trail.

:20:33.:20:38.

But let us talk about Turner. Last time it was about 44% around the

:20:38.:20:41.

councils in Wales. It compares favourably to the assembly

:20:41.:20:45.

elections, doesn't it? It is not as good as we would like it to be but

:20:46.:20:53.

people are already voting. Postal voters already have their ballot

:20:53.:20:56.

papers. We will work hard to make sure as many people as possible

:20:56.:21:03.

vote in the election stop for all political parties are handicapped

:21:03.:21:08.

that we try to run our elections on a system that has barely changed

:21:08.:21:12.

since the 19th century. We really need to update the way that we

:21:12.:21:15.

conduct elections to make it easier for people to cast their votes in

:21:15.:21:23.

modern conditions. I guess you are hinting at use of the Web and

:21:23.:21:27.

people's telephones. What do you think about? It is important

:21:27.:21:32.

because I think we need to capture younger voters. Younger people just

:21:33.:21:39.

communicate by totally different means. It is just part and parcel

:21:39.:21:43.

of their everyday lives. And will it make a big difference to turn

:21:44.:21:48.

out? It will. I think turnout is quite highly in local elections

:21:48.:21:53.

because, as Marx said earlier, it deals with the issues that matter

:21:53.:22:03.

to people on a day-to-day basis. will get to the ordeal mower to

:22:03.:22:07.

talk to Mark Hannaby. He will be talking to Plaid Cymru about the

:22:07.:22:13.

local elections. Yes. At the core of your manifesto

:22:13.:22:18.

this time is the issue of saving vital services. What is a vital

:22:18.:22:24.

service? And which services will you let go? Or services are vital

:22:24.:22:28.

but we're talking about direct services to people. I have been

:22:28.:22:33.

involved in campaigns to try and keep day centres opened,

:22:33.:22:36.

residential homes opened, those kind of services that are

:22:36.:22:39.

essentially two people in our communities. What do you think are

:22:39.:22:43.

the things that we have to let go of? It is direct choices because

:22:43.:22:50.

the money is not there to do everything. He can look at savings.

:22:50.:22:54.

Some councils have looked at middle management and areas where they can

:22:54.:22:59.

operate more efficiently. It can be done within budget but you have to

:22:59.:23:03.

prioritise. We are saying that the priorities are the services to the

:23:03.:23:08.

people, and especially those people who are dependent on those services.

:23:08.:23:14.

You have been in power in Caerphilly, can you give us an

:23:14.:23:16.

example of things you have achieved that might persuade people to vote

:23:16.:23:21.

for you, wherever they live in Wales? In terms of local economy,

:23:21.:23:31.
:23:31.:23:31.

in Gwyneth there has been there has been a scheme which has saved 350

:23:31.:23:41.

jobs. -- in Gwynedd. In terms of the economy, we have already done

:23:41.:23:45.

their jobs in areas where we have been in control. Another one of the

:23:45.:23:49.

planks of that manifesto was the idea of buying local food. It

:23:49.:23:54.

strikes me that most councils would aspire to do that. There are all

:23:54.:23:57.

kinds of laws about competition and best value that sometimes prevent

:23:57.:24:03.

them. Why d'you think you can achieve that? Some councils do it

:24:03.:24:08.

better than others. You have to look at best practice and ensure

:24:08.:24:12.

that that happens more often. We are talking about �7.2 million

:24:12.:24:16.

worth of procurement. If that can be sourced locally it will be

:24:16.:24:24.

beneficial to the local economy. It also then means that local people

:24:24.:24:26.

are benefiting from that. We have to make the most of that

:24:26.:24:31.

opportunity. You have made a commitment to try to provide paid a

:24:31.:24:35.

Kentish -- apprenticeships. We are not so used to hearing about that

:24:35.:24:41.

at council level - is the money there to do that kind of thing?

:24:41.:24:45.

did it in Caerphilly. There is no reason why we cannot do it in other

:24:45.:24:49.

local authorities. We have to look at the situation facing us where

:24:49.:24:53.

local authorities in Wales will be facing an additional �23.4 million

:24:53.:24:57.

tax from the Welsh government because of the fact that they are

:24:57.:25:01.

not prepared to fund the shortfall in terms of tax benefits. The SNP

:25:01.:25:05.

in Scotland have done so, but local authorities in Wales will have to

:25:05.:25:08.

find that money because the government here is refusing to do

:25:08.:25:14.

it. I liked the idea of buying local food. You have also talked

:25:14.:25:19.

about public sector contracts coming from Wales. Is it

:25:19.:25:24.

achievable? Yes. But you have to look at the way that you set out

:25:24.:25:27.

those contracts and that this blaze. There are regulations where you can

:25:27.:25:31.

do that the study have to be imaginative, but it can be done.

:25:31.:25:37.

Your leader recently spoke about a united Welsh alternative - is that

:25:37.:25:41.

really what you candidates needs when they are going out fighting

:25:41.:25:46.

Labour on the stump? We are saying that we have to work together to

:25:46.:25:50.

help safeguard the people of Wales from the cuts in Westminster. If

:25:50.:25:54.

parties want to work with us we will work with them on initiatives

:25:54.:25:57.

that will safeguard the people of Wales. At the moment, they're not

:25:58.:26:04.

doing it. Thank you. You can find more information on

:26:04.:26:07.

the local elections, including how the seats currently stack up in

:26:08.:26:17.

your council, by going to the BBC news website. Before we go, a quick

:26:17.:26:20.

chat with our guess about what is coming up this afternoon in the

:26:20.:26:24.

assembly. There is a short debate on the role of the media, is that

:26:24.:26:29.

right? Are you saying positive things about us here on AM-PM?

:26:29.:26:34.

course, I will say positive things about all of you lovely reporters!

:26:34.:26:39.

The main focus is about why we need a strong leader in Wales. -- a

:26:39.:26:48.

strong media in Wales. Our media are not as strong as they could be.

:26:48.:26:52.

I think it is important because it helps to inform and shake the

:26:52.:26:57.

politics here. I do not want to be knocking on doors in 2016, seeking

:26:57.:27:06.

re-election, and people still ask me what the assembly does and who

:27:06.:27:11.

does the NHS and who does education. We need a strong media. It will

:27:11.:27:14.

help us improve our game, it improves the scrutiny of the

:27:14.:27:17.

government. It is a symbiotic relationship and I am worried that

:27:18.:27:21.

it is out of kilter at present. will watch that later. Apart from

:27:21.:27:28.

that debate, what other highlights for you? It will be an important

:27:28.:27:35.

debate because a lively medium is essential. I think we will get off

:27:35.:27:38.

to a lively start because we will have questions to the health

:27:38.:27:42.

minister, which is always a lively occasion. With elections coming up,

:27:42.:27:48.

it will probably be more lively than ever. I am looking forward to

:27:48.:27:52.

this afternoon's session getting off to a good start. A quick answer

:27:52.:27:57.

on what Marx suggests about the health minister having a positive

:27:57.:28:03.

story to tell? There are always good and bad things with everything.

:28:03.:28:07.

The real issue is about the shape and direction of the health service

:28:07.:28:13.

over the next five to ten years. I think that is an issue that taxes

:28:13.:28:18.

people at a local level a lot. Briefly, after you finish your work

:28:18.:28:23.

in Cardiff Bay, you are out campaigning again, are you? In the

:28:23.:28:33.
:28:33.:28:33.

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