30/11/2011

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:00:21. > :00:25.Hello and welcome to am.pm. A change of venue for us today as the

:00:25. > :00:27.Senedd is closed due to today's public sector strike. I'm sure

:00:27. > :00:33.today's industrial action will feature in Prime Minister's

:00:33. > :00:36.Questions. We'll be off to the Commons very shortly. I'm joined on

:00:36. > :00:44.the sofa by the Plaid Cymru AM, Alun Ffred Jones, and Antoinette

:00:44. > :00:47.Sandbach for the Conservatives. Had a rare welcome to you both. We know

:00:47. > :00:51.what will come up today. The Autumn Statement and the growth

:00:51. > :00:55.figures and the strikes today will be the two main subject.

:00:55. > :00:57.They suggest it will be a difficult Prime Minister's questions for the

:00:57. > :01:01.Prime Minister? There will be a lot of shouting. It

:01:01. > :01:04.will be interesting to see what Ed Miliband says about the strikes.

:01:04. > :01:14.Let's cross now to Westminster and to our correspondent Tomos

:01:14. > :01:14.

:01:14. > :01:19.I am sure the whole House would like to join me in paying tribute

:01:19. > :01:22.to Sheldon Steel, from the 5th Battalion The Rifles. He was a

:01:22. > :01:27.highly respected soldier who should potential. Our thoughts should be

:01:27. > :01:32.with his family, friends and colleagues. His courage and

:01:32. > :01:36.dedication will never be forgotten by our nation. This morning I had

:01:36. > :01:42.meetings with ministerial colleagues and I shall have further

:01:42. > :01:46.such meetings further today. Can I join the Prime Minister in

:01:46. > :01:53.paying tribute to our brave servicemen who gave his life to his

:01:53. > :01:57.country. Our thoughts go to his family at this difficult time. My

:01:57. > :02:04.constituency in Blaenau Gwent has away unemployment but great

:02:04. > :02:09.potential and would benefit greatly from a �200 million private sector

:02:09. > :02:16.investment in motor sport. Can I express support for enterprise

:02:16. > :02:22.zones in Wales as well as England, including Blaenau Gwent?

:02:22. > :02:26.Can I congratulate him, having opted to grow additional facial

:02:26. > :02:30.hair for this month. For those capable of doing so, it is a very

:02:30. > :02:34.good way of raising the profile of this important illness, prostate

:02:34. > :02:39.cancer. We are committed to providing enhanced capital

:02:39. > :02:43.allowances and discussions are ongoing about a enhanced capital

:02:43. > :02:47.allowances in enterprise zones. We will try to help in Blaenau Gwent

:02:47. > :02:56.as elsewhere. I add we are electrifying the line to Cardiff

:02:56. > :03:04.and looking for improvements to the motorway. They will be consequences

:03:05. > :03:09.for additional spending for Wales. Mr Speaker, I am confident that the

:03:09. > :03:13.Prime Minister would praise the courage and professionalism of the

:03:13. > :03:21.Portland search and rescue helicopter. I am also confident he

:03:21. > :03:27.will see share with me the alarm, and that and disbelief of my

:03:27. > :03:31.constituents that it is to be axed. Will he meet with me and a small

:03:31. > :03:36.delegation from South Dorset to discuss this urgent matter before

:03:36. > :03:40.it -- a disastrous mistake is made? I am happy to meet with my

:03:40. > :03:44.honourable friend and I know how important it is that we have

:03:44. > :03:47.effective search and rescue facilities of our coast. What the

:03:47. > :03:52.government is looking at is the best way to deliver those services,

:03:52. > :03:58.including how they should be paid for. It is important that work goes

:03:58. > :04:02.ahead. Ed Miliband.

:04:02. > :04:08.Mr Speaker, can I join the Prime Minister in paying tribute to

:04:08. > :04:11.Sheldon Steel, from the 5th Battalion The Rifles. He served

:04:11. > :04:18.with a huge commitment and courage and a deepest condolences of with

:04:18. > :04:22.his family and friends. Mr Speaker, in June Prime Minister's questions,

:04:22. > :04:26.the prime minister praised the head teacher in Redditch for refusing to

:04:26. > :04:30.strike. Today she has closed her school. She says, this has been the

:04:30. > :04:33.most difficult decision of my professional life. The difference

:04:34. > :04:38.in the summer of was that I had faith in the Government. I have not

:04:38. > :04:41.seen any progress so I have decided to strike. Why does the Prime

:04:41. > :04:45.Minister think so many decent, hard-working public sector workers,

:04:45. > :04:52.many of whom have never been on strike before, feel the Government

:04:52. > :04:56.simply isn't listening? The reason people are going on

:04:56. > :05:01.strike is because they object to the reforms that we are making to

:05:01. > :05:08.public sector pensions. I believe those reforms are absolutely

:05:08. > :05:15.essential and as the former Labour pensions Secretary Lord Hutton said,

:05:15. > :05:20.it is hard to imagine a better deal than this. What I would say above

:05:20. > :05:27.all to people on strike today is that they are going on strike at a

:05:27. > :05:32.time when negotiations are still under way. The Right Honourable

:05:32. > :05:38.Gentleman refers to what was said in June. Let me remind him what he

:05:38. > :05:44.said on 30th June. These strikes Orrell wrong. These strikes are

:05:44. > :05:50.wrong at a time when negotiations are or going on. Why has he changed

:05:50. > :05:56.his mind? Mr Speaker, Mr Speaker.

:05:56. > :06:01.Order. I say to people who are engaged in orchestrated barracking,

:06:01. > :06:07.it is very tedious from which ever side it comes, it is very tedious,

:06:07. > :06:14.very juvenile, the public don't want to hear it and neither do I.

:06:14. > :06:18.That is all ferries to it. Mr Ed Miliband.

:06:18. > :06:21.They declared negotiations at an end four weeks ago. They said they

:06:21. > :06:31.had made their final offer. They said they had made their final

:06:31. > :06:34.offer, Mr Speaker. They haven't met the unions for four weeks. What has

:06:34. > :06:38.the Prime Minister got round saying to people? He has gone around

:06:38. > :06:47.saying that he is privately delighted that unions have walked

:06:47. > :06:50.into his trap. That is the reality. He has been spoiling for this fight.

:06:50. > :06:56.The reason people have lost faith is he is not being straight with

:06:56. > :07:03.people. Will you admit that 800,000 low-paid workers on �15,000 a year

:07:03. > :07:09.or less are facing an immediate tax rise of 3% on pension plans?

:07:09. > :07:12.I know his entire posed -- his entire party is paid for by the

:07:12. > :07:20.unions but it is extraordinary that what he has just told the House is

:07:20. > :07:24.completely and utterly untrue. The fact is there were meetings with

:07:24. > :07:29.the trade unions yesterday. There will be meetings with the trade

:07:29. > :07:32.unions tomorrow and there will be meetings on Friday. These

:07:32. > :07:37.negotiations are under way. Let me repeat again what he said in June.

:07:37. > :07:43.It is wrong to strike when negotiations are going on. And yet

:07:43. > :07:53.today, he backs the strikes. Why? Because he is irresponsible, left-

:07:53. > :08:00.

:08:00. > :08:07.Mr Speaker, the difference is that unlike him, I am not going to

:08:07. > :08:17.demonise the dinner lady, the cleaner, the nurse. People who are

:08:17. > :08:25.

:08:25. > :08:29.earning a week what the Chancellor Now, Mr Speaker.

:08:29. > :08:32.Order. Members on both sides of the House need to calm down if there

:08:32. > :08:37.are senior members of the House to think it is a laughing matter, let

:08:37. > :08:42.me tell them it isn't. The public would like to see some decent

:08:42. > :08:47.behaviour and a bit of leadership on these matters. So would die. The

:08:47. > :08:51.leader of the opposition. Mr Speaker, he is the one, and he

:08:51. > :08:54.didn't deny it, that he went around saying that he was privately

:08:54. > :09:00.delighted they had walked into his trap. That is the reality. The

:09:00. > :09:04.truth is it is not just public sector workers who are paying for

:09:04. > :09:10.the failure of his plan. It is private sector workers as well. Can

:09:10. > :09:15.he confirm that as a result of the tax credits cuts announced

:09:15. > :09:20.yesterday, a family on the minimum wage taking home �200 a week will

:09:20. > :09:26.lose a week and a half's wages? First of all, let me be absolutely

:09:26. > :09:30.clear, I will answer his question. The prime minister's answer,

:09:30. > :09:33.however long it takes, will be heard. That is the principle of

:09:33. > :09:38.democracy. The leader of the opposition must be heard and the

:09:38. > :09:44.Prime Minister must be heard. I do not welcome these strikes one

:09:44. > :09:48.bit. I think we have made a very reasonable, very fair offer to

:09:48. > :09:53.public sector workers and that is why the former Labour pensions

:09:53. > :09:58.Secretary says that it is hard to imagine a better deal. I don't want

:09:58. > :10:01.to see any strikes. I don't want to see schools closed. I don't want to

:10:01. > :10:10.see problems at our borders but this government has to make

:10:10. > :10:15.responsible decisions. Let me just facts about the public sector

:10:15. > :10:22.pensions. Anyone earning less than �15,000 on a full-time equivalent

:10:22. > :10:26.salary will not see any increase in the contributions they have to make.

:10:26. > :10:33.In terms of the reforms we are making, a nurse retiring on a

:10:33. > :10:41.salary of just over �34,000, today she would get �17,000 pension. In

:10:41. > :10:48.future she will get over �22,000 pension. A teacher retiring on a

:10:48. > :10:53.salary of �37,000 would have got �19,000 and will now get �25,000.

:10:53. > :10:57.These are fair changes and I tell you why, we rejected the idea he

:10:57. > :11:01.should level down public sector pensions. We think public sector

:11:01. > :11:06.pensions should be generous. As people live longer, it is only

:11:06. > :11:10.right and only fair that they should make greater contributions.

:11:10. > :11:17.What we are seeing today is a party opposite that is in the pocket of

:11:17. > :11:21.the trade union members can leaders and have to ask their permission

:11:21. > :11:24.before crossing the picket line and taking the irresponsible side of

:11:25. > :11:29.trade union leaders that have called their people out on strike

:11:29. > :11:34.when negotiations are under way. Now let me answer his question

:11:34. > :11:39.about low pay. Order! Order! Order! Can I remind

:11:39. > :11:46.the Prime Minister there is a large -- a large number of members of the

:11:46. > :11:54.Order Paper who I want to here. A Brief sentence will suffice.

:11:54. > :11:57.I will wait and give my answer. Mr Speaker, I am proud that

:11:57. > :12:06.millions of hard working people in this country support the Labour

:12:06. > :12:10.Party. Better than millions supporting Lord Ashcroft. The

:12:10. > :12:15.problems -- the problem is he doesn't understand his own policy.

:12:15. > :12:22.He doesn't understand there are part time workers earning less than

:12:22. > :12:27.�21,000 who will be hit. 800,000 low-paid, part-time workers. 90 %

:12:27. > :12:31.of whom are women, will be paying more. He denies it but it is true,

:12:31. > :12:41.Mr Speaker. He sits there shaking his head and he doesn't understand

:12:41. > :12:42.

:12:42. > :12:46.his own policy. Of course, Mr Speaker, he couldn't explain or

:12:46. > :12:51.justify a what he did it to everyone on low pay with a

:12:51. > :12:55.miserable deal cooked up with the Deputy Prime Minister to cut a

:12:55. > :13:02.billion pounds from tax credits yesterday in the Autumn Statement.

:13:02. > :13:07.They have no explanation for why they are doing that.

:13:07. > :13:10.Order. I say to the honourable gentleman I don't require any

:13:10. > :13:14.assistance from him. The leader of the opposition will come to a

:13:15. > :13:21.question. What will unemployment be at the

:13:21. > :13:25.time of the next Autumn Statement on the forecast? If you compare the

:13:25. > :13:28.end of this Parliament with the start of this Parliament on the

:13:28. > :13:32.office of budget responsibility figures and let us remember the

:13:32. > :13:35.Office of budget responsibility is independent. When he was sitting in

:13:35. > :13:41.the Treasury, the figures were fiddled by the ministers and

:13:41. > :13:44.advisers. That no longer happens. What it shows is there will be half

:13:45. > :13:49.a million more people in jobs, 90,000 fewer people on the claimant

:13:50. > :13:59.count and the unemployment rate will be 7.2 % instead of 8.1 %.

:13:59. > :14:04.That is the OBE are forecast. That is independent. Let me answer his

:14:04. > :14:10.question about helping the poorest people. It is his party that got

:14:10. > :14:14.rid of the 10 pence tax rate. The biggest tax and it is this

:14:14. > :14:24.Government that has taken 1.1 million people out of tax, frozen

:14:24. > :14:33.council caps, introduce nursery care for two, three and four year-

:14:33. > :14:36.olds and introduced tax credits. That is a record to be proud of.

:14:36. > :14:41.With child poverty going up as a result of the Autumn statement

:14:41. > :14:47.yesterday. The truth is he couldn't answer the question because he is

:14:47. > :14:54.too embarrassed by the truth. The education secretary should calm

:14:54. > :15:04.down, Mr Speaker. He tells children to behave, why doesn't he behave

:15:04. > :15:05.

:15:05. > :15:09.himself? He is too embarrassed, Mr Speaker. He is too embarrassed. 2.8

:15:09. > :15:14.million people out of work according to the forecast of the

:15:14. > :15:19.office of budget responsibility. Another Conservative prime minister

:15:19. > :15:23.for whom unemployment is a price worth paying. And because he is

:15:23. > :15:29.failing on unemployment and growth, he is failing on borrowing. He told

:15:29. > :15:34.the CBI conference last year that by 2015, we will have balanced the

:15:34. > :15:41.books. Will he now admit that on the central test he set himself, he

:15:41. > :15:48.has failed? He complains about the level or --

:15:48. > :15:52.the level of borrowing but he borrows more. Let me tell him what

:15:52. > :15:57.we are doing. Because we have a plan to meet the mandate and meet

:15:57. > :16:01.the test set out by the Chancellor in his emergency budget, we have

:16:01. > :16:07.some of the lowest interest rates in Europe. For every percentage

:16:07. > :16:13.point they went up under Labour, that will be another �1,000 on a

:16:13. > :16:17.family mortgage, another �7 billion out of business and another �21

:16:18. > :16:27.billion out and on to our national debt. That is why this government

:16:28. > :16:29.

:16:29. > :16:35.will take this country to the -- He is borrowing an extra �158

:16:35. > :16:42.billion to pay for his economic failure! The truth is, Mr Speaker,

:16:42. > :16:47.his plan has failed. He refuses to change course, and he is making

:16:47. > :16:55.working families pay the price. At the very least, we now know he will

:16:55. > :17:00.never ever be able to say again, "we are all in this together".

:17:00. > :17:03.Leigh Park of the Labour Party has taken sides today. He is on the

:17:03. > :17:06.side of the trade union leader that once strikes and not negotiations.

:17:06. > :17:13.He is on the side of people who want to disrupt our schools,

:17:13. > :17:17.disrupt our bodies -- borders, disrupts our country. When it comes

:17:17. > :17:24.to borrowing, he can't even bring himself to say that we are

:17:24. > :17:34.welcoming low interest rates. The shadow chancellor... Mr Speaker,

:17:34. > :17:35.

:17:35. > :17:41.they are all shouting in unison. Or should that be, they are all

:17:41. > :17:46.shouting on behalf of Unison? Let me just remind the House of what

:17:46. > :17:50.the shadow Chancellor said about lower interest rates. The shadow

:17:50. > :17:54.Chancellor said, "long-term interest rates are the simplest

:17:54. > :17:57.measure of monetary and fiscal policy credibility". That is what

:17:57. > :18:01.he said, and that is what this Government is delivering. We are

:18:01. > :18:05.being tested by this difficult economic times. We will meet that

:18:05. > :18:09.test by getting on top of our debt, getting on top of our deficit. He

:18:09. > :18:19.is being tested, too. He is showing that he is weak, left-wing and

:18:19. > :18:24.

:18:24. > :18:28.irresponsible. Order! A good like to associate myself with the words

:18:28. > :18:31.of condolence from the Prime Minister and the leader of the

:18:31. > :18:35.opposition. 10 years on from military intervention, more than 3

:18:35. > :18:38.million Gulls from Afghanistan are now in school. With the conference

:18:38. > :18:42.on Monday, will the Prime Minister sent a clear message that the

:18:42. > :18:46.rights of those girls should not be traded away in a false choice

:18:46. > :18:49.between women's rights and security, when the evidence shows that

:18:49. > :18:54.women's involvement in this conflict resolution is essential

:18:54. > :18:59.for stability. Can I wish my Honourable Friend, and everyone in

:18:59. > :19:03.Scotland, a very happy St Andrews Bay. She is right to talk about

:19:03. > :19:06.women's rights in Afghanistan. All too often we talk about security,

:19:07. > :19:11.but without talking about some of the things that security is making

:19:11. > :19:15.possible. It is the case that, whereas in 2001, there were less

:19:15. > :19:19.than one million children in school, none of them girls in Afghanistan,

:19:19. > :19:26.but today there are 6 million children regularly in school, 2

:19:26. > :19:29.million of whom are goals. -- girls. All of us who have been to

:19:29. > :19:32.Afghanistan and met leaders who want to stand up for rights in

:19:32. > :19:37.Afghanistan know what an incredible job they are doing, and we are on

:19:37. > :19:42.their side. According to the 0BR half a million more people will be

:19:42. > :19:46.on the dole in 2013 than previously thought. A terrible human cost, but

:19:46. > :19:53.how much more will be lost in tax and paid out in benefits as a

:19:53. > :19:57.result of his Chancellor's economic failure? What the OBR shows is that

:19:57. > :20:00.by 2015 we will have half a million more people in jobs, fewer people

:20:00. > :20:06.on the claimant count and a low and a prime it right. But the figures

:20:06. > :20:09.do show a sharp decline in public sector employment. That is shown by

:20:09. > :20:13.the figures. There is a much bigger increase in private sector

:20:13. > :20:17.employment. What I would say to the party opposite and to everyone in

:20:17. > :20:22.this House, if you want to reduce the amount of Anna Bligh emerged

:20:22. > :20:26.from the public sector you have to reform welfare -- the him out of

:20:26. > :20:33.unemployment. You have to freeze public sector pay and you have to

:20:34. > :20:39.reform public sector pensions. the Prime Minister aware that in

:20:40. > :20:46.the last financial year taxpayers paid over �113 million to trade

:20:46. > :20:51.unions in terms of paid staff time. In the light of today's disruptions

:20:51. > :20:56.to hospitals and schools, is it not time to review that situation?

:20:56. > :20:59.think it is time. I think the idea of full-time trade unionists

:20:59. > :21:04.working in the public sector on a trade union business, rather than

:21:04. > :21:09.serving the public, is not right, and we will put that to an end. It

:21:09. > :21:16.is absolutely the case. I think the evidence today makes that even

:21:16. > :21:19.stronger. Why is the Government freezing working tax credit which

:21:19. > :21:29.helps the lowest paid workers, including those whose wages are too

:21:29. > :21:32.low even to pay tax? At the Honourable Lady will know, what

:21:32. > :21:36.we're dealing with child tax credit, if you take this year and next year,

:21:36. > :21:41.there is going to be the �255 increase this year, which is the

:21:41. > :21:47.largest ever increase in child tax credits, and there will be a

:21:47. > :21:50.further �135 increase next year. I think that is actually the right

:21:50. > :21:54.increase in terms of child tax credits, and in terms of helping

:21:54. > :21:58.those families and genuinely helping people get out of poverty

:21:58. > :22:08.and stay out of poverty, helping on nursery education, helping that

:22:08. > :22:11.

:22:11. > :22:17.low-paid people out of tax. That is even more valuable. As the United

:22:17. > :22:21.Kingdom's borders are being kept open today by patriotic volunteers,

:22:21. > :22:28.will the Prime Minister to consider imitating the robust action of the

:22:28. > :22:36.late US President Ronald Reagan in relation to recalcitrant air

:22:36. > :22:39.traffic controllers? I do want to thank all those people, including a

:22:39. > :22:43.number of people from Number Ten Downing Street, who are actually

:22:43. > :22:46.helping to keep our borders open and to make sure that Heathrow and

:22:46. > :22:50.Gatwick are working properly. Perhaps I could report to the House

:22:50. > :22:55.that, so far, the evidence would suggest that about 40% of schools

:22:55. > :22:59.are open, less than a third of the civil service is actually striking.

:22:59. > :23:02.On our borders, the early signs are that the contingency measures are

:23:02. > :23:07.minimising the impact. We have full cover in terms of ambulance

:23:07. > :23:12.services, and only 18 out of 900 Jobcentres have closed. Despite the

:23:12. > :23:21.disappointment of the party opposite, that looks like something

:23:21. > :23:25.of a damp squib. Can I ask the Prime Minister if he came into

:23:25. > :23:30.politics to sack three quarters of a million civil and public sector

:23:30. > :23:38.workers, most of whom are women and have families? I came into politics

:23:38. > :23:43.to try and improve the welfare of people in our the fact is, at the

:23:43. > :23:47.end of this public sector pension reform, those people working in the

:23:47. > :23:52.public sector will have far better pensions than most people in the

:23:52. > :23:56.private sector who are contributing that money to them. I know you are

:23:56. > :24:03.paid to ask questions, you don't have to be paid to wave as well.

:24:03. > :24:09.That is the point. I will come down. You give the money back to the

:24:10. > :24:14.unions and I will come down. -- calm it down. Will my right

:24:14. > :24:17.honorable Friend join me in condemning the outrageous attack on

:24:17. > :24:20.our embassy in Tehran yesterday, and join me in paying tribute to

:24:20. > :24:24.our diplomatic staff serving in such difficult environments with

:24:24. > :24:29.such distinction? I certainly join my Honourable Friend in doing that.

:24:29. > :24:32.I am sure that the whole House will join me in praising the incredible

:24:32. > :24:37.devotion of our staff in the foreign and diplomatic Service who

:24:37. > :24:41.often face great danger, as they did yesterday in to run. I chaired

:24:41. > :24:46.a meeting yesterday and another this morning and spoke to our

:24:46. > :24:49.ambassador about the safety of the staff. That should be our priority

:24:49. > :24:54.- their safety and security, and making sure those are maintained.

:24:54. > :24:57.After that, we will consider taking some tough action in response to

:24:57. > :25:07.this completely appalling and disgraceful behaviour by the

:25:07. > :25:09.

:25:09. > :25:12.Iranians. Order. Closed questions. Graham Allen. I lead a committee of

:25:12. > :25:16.Cabinet ministers to look specifically at family issues

:25:16. > :25:18.including the importance of early intervention. It is central to what

:25:18. > :25:21.this government is trying to achieve. We believe that if you

:25:21. > :25:24.change the life chances of the least well-off, you have a better

:25:24. > :25:30.chance of genuinely lifting and people out of poverty and keeping

:25:30. > :25:33.them there. I take a close interest, as do my right honorable friends

:25:33. > :25:36.the education secretary and the Chancellor of the Exchequer, in the

:25:36. > :25:43.work of the Honourable Gentleman and the very real difference he has

:25:43. > :25:46.made in terms of prioritising early intervention in our country. Can I

:25:46. > :25:50.thank all three party leaders for their consistent support for early

:25:50. > :25:55.intervention. I I asked the Prime Minister to make early intervention

:25:55. > :25:59.with babies, children and young people a theme for all departments

:25:59. > :26:03.in the next Comprehensive Spending Review so that, not only will all

:26:03. > :26:07.children be able to make the best of their life chances, but also

:26:07. > :26:12.government and the taxpayer will be able to reduce the massive costs of

:26:12. > :26:16.failure, including educational under-achievement, the 120,000

:26:16. > :26:20.dysfunctional families, some as of discontent, and many lifetimes

:26:20. > :26:23.wasted on benefits? I think the Honourable Gentleman makes a

:26:23. > :26:27.sensible suggestion. I think we can look at that in terms of the next

:26:27. > :26:30.spending round, but frankly I don't even want to wait for that, and

:26:30. > :26:33.that is why the family committee that I lead and that the Deputy

:26:33. > :26:37.Prime Minister sits on as well is actually looking at how we can make

:26:37. > :26:41.things by the intervention on the 120,000 neediest most broken

:26:41. > :26:45.families, how we can make that effective. The Government's plans a

:26:45. > :26:48.huge amount of money on these families, but we are not satisfied

:26:48. > :26:52.that money is being spent actually intervening in those families and

:26:52. > :26:55.trying to turn them round to solve their very real problems. We have a

:26:55. > :27:01.programme for doing that right now, but I hope he will continue with

:27:01. > :27:07.his positive work. Mr Speaker, the Prime Minister will be aware that

:27:07. > :27:17.there remains 16 British overseas territories around the world where

:27:17. > :27:18.

:27:18. > :27:22.the Union Flag still proudly flies. Will he pledged that her Majesty's

:27:22. > :27:26.government will protect, defend and cherish the loyal subjects of all

:27:26. > :27:30.of those territories? I can happily give my Honourable Friend that

:27:30. > :27:34.guarantee. Let me add that the overseas territories and will

:27:34. > :27:37.remain British as long as the people of those territories want to

:27:37. > :27:42.maintain their special relationship with us and the Union Flag will

:27:42. > :27:45.continue to fly over the Governor's residence is. We are increasing our

:27:45. > :27:50.assistance to overseas territories. You will be familiar want what

:27:50. > :27:52.we're doing in a St Helena with the airport, and next year we will have

:27:52. > :27:58.the anniversary of the liberation of the Falklands Islands, and that

:27:58. > :28:03.will be a moment for genuine celebration. Mr Speaker, my

:28:03. > :28:09.constituent Jackie asked me how she is going to manage with a 3% tax on

:28:09. > :28:14.her pension, no pay increase until 2013, and rocketing food and fuel

:28:14. > :28:18.bills. How will she feed her family? Why is the Fire Minister

:28:18. > :28:23.making people like Jackie pay for his Government's failure? -- Prime

:28:23. > :28:27.Minister. The fact is, the whole country is having to pay for the

:28:27. > :28:30.failure of the last government to get on top of debt and deficit.

:28:30. > :28:35.What I would say it did a constituent is that we are trying

:28:35. > :28:39.to help, that is why we have reason the council tax, that is why be a

:28:39. > :28:44.cut in the petrol tax, taking 1.1 million of the poorest people out

:28:44. > :28:48.of tax altogether, that is why we are increasing the child tax credit

:28:48. > :28:51.in the way that I said, and we will continue to take all those steps.

:28:51. > :28:54.What I would say to all constituents is that the most

:28:54. > :29:01.dangerous thing we could do right now is lose control of our debts

:29:01. > :29:08.and see interest rates go up. When this government came to power our

:29:08. > :29:11.interest rates were the same level of -- as Italy. Today, Italy's

:29:11. > :29:15.interest rates were 5% higher. If that were the case, we was the

:29:15. > :29:20.higher mortgage costs, businesses going bust, and a real problem in

:29:20. > :29:23.this country. That is the policy of the party opposite. What message

:29:23. > :29:27.does the Prime Minister have today for the thousands of people who run

:29:27. > :29:30.and work in small businesses in my constituency who worked

:29:30. > :29:35.tremendously hard to keep those businesses and the local economy

:29:35. > :29:42.going, and who can barely afford to make provision for their own

:29:43. > :29:45.pensions? I think the Honourable Lady is entirely right, that this

:29:45. > :29:50.government is squarely on the side of people who work hard, play by

:29:50. > :29:54.the Rolls, who want to do the right thing for their families. To all

:29:54. > :29:57.those people, I would say to them today, thank you for what you do to

:29:57. > :30:00.contribute to public sector pensions that are far more generous

:30:00. > :30:04.than anything you are able to afford, but for our part, we

:30:04. > :30:08.promise to make sure that public sector pensions remain strong but

:30:08. > :30:12.are affordable. What is so notable about today is the party opposite

:30:12. > :30:22.has taken the side of trade union leaders that want to actually

:30:22. > :30:26.

:30:26. > :30:31.Is the Prime Minister aware that �100 million would pay for five new

:30:31. > :30:34.Hawk planes to be built for hour Red Arrows? Isn't that a good use

:30:35. > :30:38.of the money? I strongly support British

:30:38. > :30:42.Aerospace and everything they do. It is a strong British company and

:30:42. > :30:46.they have the full backing of the British government and an enormous

:30:46. > :30:51.order book from us in terms of the Strategic Defence Review. Also

:30:51. > :30:56.baccy DEC -- also backing from us in terms of selling aircraft all

:30:56. > :31:00.over the world. There have been issues and difficulties. That is

:31:00. > :31:04.why we put in an enterprise zone and we will do everything we can to

:31:04. > :31:10.help that company. Will the Prime Minister share my

:31:10. > :31:16.belief that until recently the leader of the opposition should

:31:16. > :31:20.know now is not the time to strike until negotiations are completed?

:31:20. > :31:24.The Honourable Gentleman makes a good point. In case anybody didn't

:31:24. > :31:28.get it the first term, these strikes are wrong at a time when

:31:28. > :31:31.big decisions are going on. Negotiations are going wrong so the

:31:31. > :31:34.leader of the opposition should think they are wrong. He doesn't

:31:34. > :31:41.think they are wrong because he is in the pocket of the trade union

:31:41. > :31:45.leaders. Home help, carers, nurses and

:31:45. > :31:51.teachers are on strike for the first time in their life. These

:31:51. > :31:57.hard working people... We hear laughter from the other side but it

:31:57. > :32:07.is no laughing matter for hard- working families. These hard-

:32:07. > :32:10.working people have been demonised by eight parties but they are hard

:32:10. > :32:15.working people and enough is enough. I know people feel strongly about

:32:15. > :32:20.this but we have a responsibility to deliver an affordable public

:32:20. > :32:23.sector pensions system. We have rejected the idea of levelling down

:32:23. > :32:28.public sector pensions. What we will deliver in terms of public

:32:28. > :32:31.sector pensions is a generous and fair offer which will give public

:32:31. > :32:36.sector pensioners, unlike others in the country, a defined benefits

:32:36. > :32:41.system. That is why Lord Hutton says this is an incredibly generous

:32:41. > :32:47.offer. What a pity the party opposite has left reality and will

:32:47. > :32:51.not back that view. The Prime Minister will know I have

:32:51. > :32:55.held an event in my constituency and small businesses have been

:32:55. > :32:58.complaining about the red tape and bureaucracy they have to jump

:32:58. > :33:03.through. What message can the Prime Minister has sent to these

:33:03. > :33:07.businesses as they look to rebuild the economy to get rid of some of

:33:07. > :33:11.these obstructions and nonsense? Where honourable friend is right to

:33:11. > :33:14.raise this. That is what we have introduced the red tape challenge

:33:14. > :33:17.so that these rules are published on mind and businesses and

:33:17. > :33:25.individuals can tell us which can be scrapped without harming public

:33:25. > :33:30.safety. At the same time, we have the one in, one out rule. They will

:33:30. > :33:36.have to introduce one after they have scrapped in regulation. That

:33:36. > :33:42.will help businesses to employ more people in this country.

:33:42. > :33:48.The Prime Minister said the additional �110 rise in tax credits

:33:48. > :33:52.would help have an impact on child poverty. Now he is taking that away

:33:52. > :33:59.and raising tax credit, how many more children will be in poverty in

:33:59. > :34:06.the next year? child tax credit is it will be �390

:34:06. > :34:10.higher than the time of the last election. That is a �250 -- �255

:34:10. > :34:15.increase this year, the largest ever in the child tax credit. We

:34:15. > :34:20.are adding another one under �35 next year. That is what is

:34:20. > :34:23.happening in terms of child tax credit. Let me make this point in

:34:23. > :34:28.addition. If you increase the pension, you seek child poverty

:34:28. > :34:32.figures go up under the definition used by the party opposite. I think

:34:32. > :34:36.it is right we increase the pension. I don't think you harm the life

:34:36. > :34:39.chances of children by giving pensioners what we have given, a

:34:39. > :34:43.record cash increase in pensions next year.

:34:43. > :34:48.Can I ask the Prime Minister to insure this House remains a free

:34:48. > :34:53.and democratic institution accountable only to the does and

:34:53. > :34:59.does he share my indignation that some members had to ask permission

:34:59. > :35:03.from the union to be here today? Order. There is a matter of basic

:35:03. > :35:08.courtesy here. The question from the honourable lady should be heard.

:35:08. > :35:11.I think she has completed her question. It really is a lesson for

:35:11. > :35:15.the future when questions are being asked, they should be heard with

:35:15. > :35:19.courtesy. When the answers are given, whatever members think of

:35:19. > :35:24.them, they should be heard with courtesy.

:35:24. > :35:27.I think it is genuinely baffling to people that somebody who said they

:35:27. > :35:31.wouldn't back strike action while negotiations were under way has

:35:31. > :35:35.come to the House of Commons today to speak on behalf of trade union

:35:35. > :35:44.leaders. I want to say it is a flashback to Neil Kinnock but even

:35:44. > :35:50.he wasn't as bad as that. Does the Prime Minister think it

:35:50. > :35:54.fair that the Chancellor yesterday decided to take just 300 million

:35:54. > :35:58.extra from the banks and 1.3 billion from working families in

:35:58. > :36:03.this country? Is that a fair distribution?

:36:03. > :36:09.If you look at what the Chancellor announced, he announced we would be

:36:09. > :36:13.taking to �0.5 billion of the banks, not in one year because of the

:36:13. > :36:17.bonus tax but every single year. It is this Government properly putting

:36:17. > :36:21.a tax on the banks and the party opposite that year after year they

:36:22. > :36:25.gave knighthoods to Fred Goodwin, didn't regulate the banks, didn't

:36:25. > :36:35.tax then probably and give us the biggest boom and bust we are having

:36:35. > :36:36.

:36:36. > :36:40.to recover from. While I welcome the reduction in

:36:40. > :36:44.corporation tax and I'm sure that will encourage businesses to expand,

:36:44. > :36:48.90 % of the businesses in my constituency are not incorporated

:36:48. > :36:52.and went benefit from that tax reduction. Will the Prime Minister

:36:52. > :36:55.insure that in the spring Budget, these budgets are given a similar

:36:55. > :37:00.tax incentives so they can insure they can grow to their full

:37:00. > :37:05.potential in the economy and the communities they serve.

:37:05. > :37:10.Can I praise the honourable gentleman for the money litigant --

:37:10. > :37:13.magnificent specimen lurking under his nose. We are not going to wait

:37:13. > :37:19.for the budget in order to help these small businesses. We've

:37:19. > :37:20.already extended the rate relief freeze for small businesses and the

:37:20. > :37:27.National loan guarantee scheme which will help small businesses

:37:27. > :37:31.get access to credit. Order.

:37:31. > :37:35.A slightly longer than normal session of Prime Minister's

:37:35. > :37:39.Questions. Those surprises that the Autumn Statement and the public

:37:39. > :37:43.sector strikes dominating proceedings with some light relief

:37:43. > :37:51.in the moustache has grown by some Welsh MPs. Plenty to discuss in the

:37:51. > :37:55.studio. Thank you, Tomos. Alun Ffred Jones,

:37:55. > :37:58.strikes and the economy dominate. Some pretty harsh attacks got from

:37:59. > :38:03.the Prime Minister on Ed Miliband. Irresponsible, left-wing and week.

:38:03. > :38:06.He said it twice. I'm not sure whether Ed Miliband would accept

:38:06. > :38:12.left wing as an insult but it seemed like it to me.

:38:12. > :38:16.It is just the banter of Question Time. I do not particularly admire

:38:16. > :38:26.David Cameron but he is effective on his feet and he likes to attack

:38:26. > :38:26.

:38:26. > :38:30.Ed Miliband for below at the mercy of everybody else. The truth is he

:38:30. > :38:37.did condemn the strikes. He is in a difficult condition and today he

:38:37. > :38:41.seems to be almost backing them. His position wasn't a strong one.

:38:41. > :38:42.Antoinette Sandbach, the Prime Minister laid into the unions over

:38:42. > :38:48.their strike. Do you agree with him?

:38:48. > :38:51.I do. As he pointed out, negotiations are still ongoing.

:38:51. > :38:56.They were talking to the unions yesterday and will talk to them

:38:56. > :39:00.tomorrow. It is clear from Lord Hutton's report that there were

:39:00. > :39:05.difficult questions that needed to be addressed in relation to public

:39:05. > :39:08.sector pensions and it seems wrong to to have been striking in the

:39:08. > :39:13.middle of those negotiations. And sure many on the Labour benches

:39:13. > :39:16.would be thanking Lord Hutton for his contribution. The Autumn

:39:16. > :39:20.statement came yesterday. Ed Miliband attacked the Prime

:39:20. > :39:24.Minister on his failure, as Ed Miliband saw it, to balance the

:39:24. > :39:31.books by the end of the parliament. That could come back to haunt him?

:39:31. > :39:37.He can't have it both ways. He also attacked him on the increased

:39:37. > :39:41.borrowing taking place. The reality is that there has been a public

:39:41. > :39:47.expenditure programme which has been brought forward largely in

:39:47. > :39:50.relation to supporting jobs, in particular the National loan

:39:50. > :39:54.guarantee scheme which will help small businesses get finance to

:39:54. > :39:59.small businesses. Why is it happening now?

:39:59. > :40:04.I think it is quite clear there has been a huge change of circumstances

:40:04. > :40:08.with the euro-zone countries. The debt storm is really what is

:40:08. > :40:12.causing the major problems, as the Office of budget responsibility

:40:13. > :40:18.pointed out. Do you think the government has

:40:18. > :40:22.abandoned plan a, as they have been called on to do and brought on

:40:22. > :40:26.these public sector works? I feel like saying I told you so.

:40:26. > :40:36.Pyecombe re has been banging on about infrastructure projects --

:40:36. > :40:40.plied country. It is fair to say that the project is in disarray.

:40:40. > :40:45.They would pay it back in time and the economic circumstances are

:40:45. > :40:49.becoming worse than a year ago. This is not the Chancellor's fault,

:40:49. > :40:54.is it? I think his plan was wrong. Trying

:40:54. > :40:58.to pay back the debt so quickly was basically wrong. It doesn't affect

:40:58. > :41:02.people like George Osborne. Where it hurts is at the bottom. It is

:41:02. > :41:10.true. They come from a different background with a different point

:41:10. > :41:15.of view for most of us. The situation is difficult. In terms of

:41:15. > :41:21.the infrastructure impetus that he gave yesterday, it is welcome but

:41:21. > :41:24.it is probably too small. Come back on the attack on the

:41:24. > :41:28.Chancellor, then? I really think it is about the

:41:28. > :41:36.policies put in place, not the person. The policies are to lift

:41:36. > :41:39.the lowest-paid out of tax so no tax is paid at �10,000. We have

:41:39. > :41:43.heard the additional support that was announced in relation to child

:41:43. > :41:50.tax credits which was referred to extensively in Prime Minister's

:41:50. > :41:54.questions. The aim is to help the public sector workers that have the

:41:54. > :41:58.lowest pension entitlement, to protect that entitlement and to

:41:58. > :42:03.deal with the issues that are higher up the scale.

:42:03. > :42:09.We will come on to the strikes. If you look at the wider question,

:42:09. > :42:12.the economy is in deep trouble. The economies of the Western world are

:42:12. > :42:19.in deep trouble as well but the approach the Tories took it was

:42:19. > :42:23.basically false. I know public debt is a problem, personal debt is a

:42:23. > :42:28.problem, the Bank's debt is a problem. This was allowed to

:42:28. > :42:33.develop over a period of years but the fact remains that unless we get

:42:33. > :42:36.people back to work, all the anti- poverty measures we can devise will

:42:37. > :42:41.come to nothing. That is why I welcome the small impetus that has

:42:41. > :42:44.been given to capital projects but we will have to see how that pans

:42:44. > :42:49.out in Wales. Very briefly.

:42:49. > :42:55.The difficulty is that you can't borrow more to pay for your

:42:55. > :42:59.borrowings. He has said he will extend the period over which the

:42:59. > :43:04.borrowings are paid back but he will stick within the limits. The

:43:05. > :43:09.aim of that is Britain has had a �20 billion benefit from being seen

:43:09. > :43:14.as a safe haven from Europe during the Euro storm.

:43:14. > :43:18.We have to leave it here for now. Coming up, we hear tributes to the

:43:18. > :43:25.Wales public -- Wales football manager, Gary Speed. Before we do

:43:25. > :43:30.that, our reporter has been out on a picket line at the Welsh

:43:30. > :43:37.government offices in Cardiff. I am joined by the Welsh government

:43:37. > :43:40.group president for the PCAS Union. But a lot going on for the

:43:40. > :43:46.Government today? There are three unions out on

:43:46. > :43:50.strike today. Not a lot of people have attended word today.

:43:50. > :43:55.No proceedings at the Senedd? The Senedd is closed and picket

:43:55. > :44:01.lines in Cardiff Bay. Why is everybody on strike today?

:44:01. > :44:05.It is a pensions issue that has united the unions across the UK.

:44:05. > :44:10.Eat is worth mentioning this is an argument with the UK coalition

:44:11. > :44:15.government, not the world government. My decisions have been

:44:15. > :44:20.useless. There is not much meaning from -- meaningful legacy Asian the

:44:20. > :44:25.room. The Government have attacked our pensions and they expect us to

:44:26. > :44:29.work longer and get less. What difference will it make to

:44:30. > :44:37.your average worker on a monthly basis? Is beret figure you have got

:44:37. > :44:42.in terms of how things will go up? Contributions are likely to

:44:42. > :44:49.increase by 3%. The gold-plated myth is ridiculous. The average

:44:49. > :44:55.pension is a �5,600. If you look at the impact on female workers, the

:44:55. > :44:59.predominant public sector workers are female, low-paid. For them to

:44:59. > :45:04.increase their pensions by 3%, if it was going into the pot and they

:45:04. > :45:08.would get more at the end, it would make sense. The Hatton report said

:45:08. > :45:13.it was affordable and the extra money would plug the deficit and

:45:13. > :45:16.not go into any pension pot at the end. It is not acceptable.

:45:16. > :45:20.And yet the government maintain they have made concessions. They

:45:20. > :45:25.offered an improved deal at the beginning of the month and they are

:45:25. > :45:29.not going to move? They need to renegotiate. There has

:45:29. > :45:37.not been meaningful legacy Asian from the start. PCS have said that

:45:37. > :45:40.and they were one of the first unions to ballot.

:45:40. > :45:44.In the private sector, many people don't have pensions and they can't

:45:44. > :45:50.afford them. Many people will think about the impact on people waiting

:45:50. > :45:54.for operations, children at school and the economy. We are all

:45:54. > :45:58.suffering from a deflated economy and this makes things worse.

:45:58. > :46:03.There are two questions there. The impact on the private sector and

:46:03. > :46:08.the public. Of course, striking is the last option. We never want to

:46:08. > :46:14.strike. Everybody has lost pay today. It is regrettable and we

:46:14. > :46:18.would rather be negotiating. The impact on the economy is the

:46:18. > :46:23.alternative argument we have been trying to make. A large majority of

:46:24. > :46:27.people in Wales are in the public sector. We have been on pay freezes,

:46:27. > :46:32.we have higher inflation. The economy will stall. We don't have

:46:32. > :46:36.the money, we don't have the income and that will impact the private

:46:36. > :46:39.sector at the shops and everything. If we don't have money to spend,

:46:39. > :46:45.everybody will feel the pinch. On the pensions issue about private

:46:45. > :46:55.pensions, it is not a race to the bottom. It is about making sure

:46:55. > :47:05.

:47:05. > :47:10.That was Aaron Porter earlier this morning on the picket line. Around

:47:10. > :47:13.170,000 public-sector workers have gone on strike here in Wales Today,

:47:13. > :47:19.everywhere from schools and hospitals through to rubbish

:47:19. > :47:22.collection and bus services. have a great deal of respect for

:47:22. > :47:26.the public sector workers and the job they do right across the board.

:47:26. > :47:29.And quite angry with the union bosses that, whilst discussions are

:47:29. > :47:33.going on about the pensions, that they are calling people out on

:47:33. > :47:37.strike because that is going to disrupt so many families, children

:47:37. > :47:41.and businesses right across Wales. We must remember that we are living

:47:41. > :47:44.longer, we have faced enormous debt, we have to tackle the pensions

:47:44. > :47:48.problem. We had a Labour pensions minister that are produced the

:47:48. > :47:54.report, John Hutton, and I regret that they are taking this action

:47:54. > :48:04.today, for the simple reason that negotiations are ongoing on this

:48:04. > :48:05.

:48:05. > :48:08.very sensitive subject. Well, that is the Welsh Secretary with her

:48:08. > :48:12.view on the strikes. My guests are here because there is no Assembly

:48:12. > :48:18.proceedings today because of the strike. How do you feel about that?

:48:18. > :48:22.I went into work this morning. Into the Assembly? Yes. We have been

:48:22. > :48:26.getting on to it with the job. the picket lines that? There were

:48:26. > :48:33.some people there when I arrived, but none when I left to come here.

:48:33. > :48:43.Did they have anything to say to you? Know. You are not going to the

:48:43. > :48:45.

:48:45. > :48:49.Senedd today, are you? No, I did not cross the picket line. The

:48:49. > :48:54.devil is in the detail. Changes will come to pensions. I have

:48:54. > :48:59.worked in the public sector and the private sector. Public sector

:48:59. > :49:04.pensions are a much preferable place to be. But the fact is that

:49:04. > :49:09.these negotiations, it seems to me, a very polarised. You can hear

:49:09. > :49:13.statements made in House of Commons saying he would be much better off,

:49:13. > :49:20.but strikers are saying they would be much worse off. Obviously, I'm

:49:20. > :49:24.not sure where the truth lies. Office for Budget Responsibility no

:49:24. > :49:29.-- they have looked up pay rates between public sector and private

:49:30. > :49:35.sector. The average pay rates in the private sector gross per week

:49:35. > :49:42.is �465. In the public sector it is over �500. When you take into

:49:42. > :49:50.account pensions, that pay gap opens up a much wider. It is �479

:49:50. > :49:55.if you work in the private sector, and �610 for the public. That is

:49:55. > :50:01.not a view that many people would recognise. Those are the Office of

:50:01. > :50:08.National Statistics figures, and they are the median gross pay rates.

:50:08. > :50:13.In terms of pensions, there are defined benefit pensions for public

:50:13. > :50:18.sector workers which private sector workers do not have. The average

:50:18. > :50:24.annuity for a private sector worker is �1,200 a year. Anything to add

:50:24. > :50:28.before we move on? I think you have to protect the lower-paid, that is

:50:28. > :50:33.an absolute. You cannot cut... Government so they are doing now.

:50:33. > :50:38.am not sure whether I believe them. This could run and run, but there

:50:38. > :50:42.will be changes, no doubt. Tributes will continue to be paid to the

:50:42. > :50:46.Wales football manager Gary Speed to died at the weekend at the age

:50:46. > :50:51.of 42. In the world of politics yesterday in the Senedd, the

:50:51. > :50:55.presiding Officer Rosemary Butler lead a minute's silence. It is my

:50:55. > :51:00.sad duty today to ask you to stand and observed a minute's's silence

:51:00. > :51:04.in memory of Gary Speed, who had great success and popularity as an

:51:04. > :51:14.international football player and, more recently, as a successful

:51:14. > :51:21.

:51:21. > :51:26.At Westminster, MPs also paid tribute in an early day motion,

:51:26. > :51:31.which was tabled by the Plaid Cymru MP Jonathan Edwards. It was

:51:31. > :51:34.important that members of Parliament had the opportunity to

:51:34. > :51:39.pay tribute to Gary Speed for his contribution to football in Wales.

:51:39. > :51:46.I was happy to put the motion down and hope that many members would

:51:46. > :51:50.give their support and Honor Gary Speed in the appropriate manner.

:51:50. > :51:54.-- let's talk to our guest. It was a tremendous shock. You will have

:51:54. > :52:00.been in his company many times, I am sure. Yes, but I did not know

:52:00. > :52:03.him at all. He was a consummate professional and seems to have been

:52:03. > :52:07.well respected wherever he played amongst his peers and a marks to

:52:07. > :52:12.the management. He seems to have been a genuinely nice guy, an

:52:12. > :52:18.ordinary guy, he just loved football. I can only imagine the

:52:18. > :52:23.horror of the family, but it was a deserved tribute, I think. It was

:52:23. > :52:29.right that the Assembly mark the occasion. And when that, there was

:52:29. > :52:38.an outpouring, wasn't there, beyond while following his death on Sunday.

:52:38. > :52:41.It shows the respect that he had, and the regard that he was held in

:52:41. > :52:51.across England and Wales, and elsewhere. I feel desperately sorry

:52:51. > :52:51.

:52:51. > :52:54.for his family at this time. It is awful. We don't know what pressures

:52:54. > :53:03.position, or what drove him, but it is such a sad loss for everybody in

:53:03. > :53:11.Wales and in the world of football. Moving on now, we had the Autumn

:53:11. > :53:17.Statement yesterday, as well as the government's judgment being made.

:53:17. > :53:21.Our correspondent is in Cardiff. The budget has been laid, which

:53:21. > :53:30.essentially means it will not be changed before the vote next year.

:53:31. > :53:40.We know that the Government have done a deal with the Lib Dems.

:53:41. > :53:48.

:53:48. > :53:51.Yes, there are three parts to it. The first part is to do with that

:53:51. > :53:58.money that was coming in as a result of the council tax freeze in

:53:58. > :54:06.England. The Government has not changed much on that. It is doing

:54:06. > :54:13.pretty much what it would have done anyway. Then there is that extra

:54:13. > :54:23.money that is going to Lib Dems. That follows the most disadvantaged

:54:23. > :54:25.

:54:25. > :54:29.children in our school. The third part, given what happened in the

:54:29. > :54:39.Autumn Statement, the most important part, was an agreement

:54:39. > :54:40.

:54:40. > :54:42.that the Lib Dems would have a voice in how any additional money

:54:42. > :54:45.coming into Wales as a result of the Autumn Statement is spent. We

:54:45. > :54:48.now know that some is �300 million. We await to see what mechanisms

:54:48. > :54:50.there will be for the Lib Dems to have that voice, and indeed whether

:54:50. > :54:53.the Government listens closely to that voice. That is the basis of

:54:53. > :54:56.the deal between them. We had the Panesar saying that maybe something

:54:56. > :54:57.should be done about a portion of the M4 here in South Wales. We are

:54:58. > :55:00.talking �200 million. Is the Government expecting that money

:55:00. > :55:02.goes towards improvements on the M4 here? There are difficulties over

:55:02. > :55:04.the whole question of the M4. the question of the Severn

:55:04. > :55:11.crossings. The old Severn Bridge is entirely in England. Although the

:55:11. > :55:17.second Severn crossing is partly in Wales, it remains the

:55:17. > :55:23.responsibility of the Department of Transport. There is a question as

:55:23. > :55:27.to who should pay for it. Should it be a matter for the UK government,

:55:28. > :55:32.the Welsh government or a bit of both? There are a lot of questions

:55:32. > :55:35.there. When you are talking about arterial questions, the same

:55:35. > :55:42.arguments we had about the alleged vocation of the railway line, there

:55:42. > :55:44.will have to be a lot of tough talking to talk -- to sort things

:55:44. > :55:48.out. What are the repercussions going into local government

:55:48. > :55:52.elections next year between Labour and the Lib Dems? The amount of

:55:52. > :55:58.money they got, that �20 million, is nothing in terms of the Assembly

:55:58. > :56:03.Budget. However, in terms of the schools receiving it, the sums are

:56:03. > :56:09.quite substantial and they are broken down at school by school. It

:56:10. > :56:17.means that a LibDem candidate will be able to go out at election time

:56:17. > :56:27.and say that your local school got an extra �25,000 or whatever

:56:27. > :56:27.

:56:27. > :56:34.because of this deal we made with Labour at the Assembly. Back to be

:56:34. > :56:44.a help for the Lib Dems. Labour are targeting these wards, sensing that

:56:44. > :56:48.

:56:48. > :56:58.if they can wipe out the Lib Dems local government presence, then the

:56:58. > :56:58.

:56:59. > :57:02.party in Wales will be seriously weakened because the whole of the

:57:02. > :57:12.Welsh party is built on that local government base and there are no

:57:12. > :57:18.more local elections for another five years, most likely, after next

:57:18. > :57:28.year. This may give them a hope of hanging on in some areas in some

:57:28. > :57:32.

:57:32. > :57:42.wards. In this difficult time, whoever is to blame, there will be

:57:42. > :57:49.a lifeline and keeping people in jobs. While it did Labour say no to

:57:49. > :57:54.this? They said they did not have the money, that is what they

:57:54. > :57:59.claimed. Then yesterday Carwyn Jones said be should have asked for

:57:59. > :58:05.more. Really, that was our prime aim. We wanted to see capital

:58:05. > :58:15.projects throughout Wales, and I am still in a fog as regards how this

:58:15. > :58:25.

:58:25. > :58:35.new money from London is going to be used. What do you make of

:58:35. > :58:37.

:58:37. > :58:40.Labour's deal with the Lib Dems. They have taken one of your allies,

:58:40. > :58:42.haven't they? That money was given to Labour, but came here as a

:58:42. > :58:45.result of council tax freezes in England. Some council tax payments

:58:45. > :58:48.have doubled over the last 10 years in Wales. It is still cheaper than