14/09/2011 Politics Scotland


14/09/2011

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Hello and welcome to Politics Scotland. Coming up on the

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programme: Scotland bucks the UK unemployment trend as jobless

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figures improve - 3000 fewer people are seeking work. But it's not all

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good news - there's concern on the shop floor as retail sales plummet.

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As concern grows about the state of the world economy, the Finance

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Secretary will this afternoon chart the way ahead for Scotland. And,

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here at Westminster, could we be heading towards a winter of

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discontent? Public sector unions say they will ballot for strike

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action. Good afternoon. Let's start with

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the economy, where we're seeing a very mixed picture. The latest

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unemployment figures show the number of people seeking work in

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Scotland in the three months to July was down by 3000 on the

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previous quarter. That means 204,000 Scots were looking for work.

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Although the number of people claiming unemployment benefit was

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up slightly, these latest figures also found an increase of 23,000

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Scots in employment. But it's a much less optimistic picture on the

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retail front, where sales have slumped - the second worst annual

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drop in 12 years. Let's get some analysis now with our business and

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economy editor Douglas Fraser and our political editor Brian Taylor,

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who's at Holyrood. Good afternoon, thank you for

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joining me. Force of four, Douglas, let's look at these unemployment

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figures. Scotland does seem to be faring better than the rest of the

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UK. All of this is relative. The figures are still higher than you

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would want them to be. But, if you look at where Scotland is that

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compared with the UK, particularly Scotland having been in a worse

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position for the last 18 months or so, it has now moved into a very

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clearly better position. One way of counting it is this labour market

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survey, of people looking for jobs over a three-month period. May,

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June and July down by 3,000. It is quite a modest improvement, but

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nonetheless it is a move in the right direction. All the regions of

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England have seen those numbers are going up. But, creeping up is the

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number of people on a Jobseeker's Allowance, which is a harder core

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of unemployed people. It is a higher threshold to get on to those

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numbers. From the other point of view, it is not just about

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unemployment, but also employment. If you look at the Scottish economy,

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according to these figures, the public sector is shedding a lot of

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jobs. Scotland is shedding them faster than the rest of the UK.

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Unlike the rest of the UK, Scotland's private sector, which we

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tend to be malign -- 10 to malign, is putting on jobs faster than the

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rest of the UK, so it's something is going relatively right for the

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Scottish economy. What about sales figures, they don't inspire much

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confidence on the High Street, do they? They don't. It was bad in May,

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the second-worst month since records began. The reason may be

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the weather. Also, inflation has eroded people's ability to spend.

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For instance, on food spending, the total spending on food has gone up,

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but not as fast as a food price inflation has gone up. People are

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either buying cheaper food or they are buying less fit. Also, job

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insecurity is an issue. In may mean that on big-ticket items in

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particular, like furniture, people are reining back. They have been

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doing that right to this downturn. These figures are worse even than

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the pulling back of spending that we saw in the worst of the

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recession three years ago. Brian, before we discuss the economy, you

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have got an update on the Edinburgh project. Yes, the minister

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responsible has said that the money that was going to be withheld by

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the Scottish government for this transport projects, that money, �72

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million, is going to be restored. Some intriguing announcements about

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the way the project will now be handled and governed. 18 from

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transport Scotland will join the team directing and controlling the

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trams project and tried to drive this forward. Also, very

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significantly, as part of the agreement between the Scottish

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government and Edinburgh council, Scottish government ministers will

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have the right and power to veto key strategic decisions regarding

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the trams. At the same time, they are not taking the financial risk

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into the Scottish government. That remains with the local authority.

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Thank you for that update. Returning to the economy, you were

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at the first minister's briefing this morning. Yes, he was making

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the point that he was -- that the Scottish situation with regard to

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unemployment and employment is relatively better with regard to

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the rest of the UK. He attributed that to the policies being

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undertaken by the Scottish government, accelerated capital

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spending, access to finance. Also, the security that comes from

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offering no compulsory redundancies to those in the public sector who

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are directly under Scottish government control. He was calling

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for a special plan B from the Chancellor, George Osborne, who

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suggested that he should emulate the approach taken by the Scottish

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government. Thank you for that. Let's cross to the chamber now and

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hear what the Finance Secretary John Swinney is saying.

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He has been saying that Scotland is not immune to the global economic

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downturn. The public sector has a vital role in helping the economy

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emerged from the worst effects of recession, and this update to the

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Government's economic strategy is clear priority to accelerating

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economic recovery. As the first minister said last week, and as the

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cabinet secretary for education has just outlined, we are supporting

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our dumb people through a package of new measures. This includes a

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guarantee of a place in education and training for all 16-19 year-

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olds. The delivery of apprenticeship opportunities in

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each year for parliamentary term, and ensuring that access to higher

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education is based on the ability to succeed and not the ability to

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pay. Where we can, we will protect employment, ease uncertainty, and

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promote economic confidence. Our no compulsory redundancies policy does

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just that. We will also continue to protect household income as part of

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our commitment on the social wage. Economic recovery is a typically

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led by investment and we have argued strongly against the

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coalition's plans to cut our capital spending by nearly 40% in

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real terms. Our previous decision to accelerate capital was a success,

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and is estimated to have supported over 5,000 jobs through our

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programme of capital acceleration. Where possible, we will prioritise

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our spend on capital to maximise the impact of jobs and on the

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economy. We will deliver key infrastructure projects, we will

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take forward a new Housing Investment Programme, and we will

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support additional investment through alternative funding streams

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such as our �2.5 billion non-profit distributing programme and the use

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of tax incremental financing. We will also work to boost levels of

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private investment in the economy through initiatives such as the

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Scottish Investment Bank and our national renewables infrastructure

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fund. However, as I outlined to the parliament in June, long-term

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economic success cannot be supported solely by growth in the

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public sector. It is growth and investment in the private sector

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that is key to unlocking Scotland's potential and creating

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opportunities for all to flourish. The objective... I am glad that Mr

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Johnson acknowledges the success of the Government's agenda. If he

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wants to get to his feet to endorse it further, he would be welcome to

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do so. The objective for the Government is to provide the over

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arching economic framework, such as a competitive business environment

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and integrated economy, and a skilled and adaptable workforce

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which is conducive to sustained economic growth. That is what we

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aim to achieve through the Government's economic strategy. We

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are focusing our actions on six strategic priorities which will

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drive sustainable economic growth and develop a more resilient and

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adaptable economy. Our ability to promote prosperity and jobs depends

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on the performance of our businesses both large and small.

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That is why we are committed to maintaining and further investing

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in a supportive business environment. Reflecting the

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opportunity we have to take advantage of Scotland's relative

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comparative advantage in the local economy, we have established a new

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strategic priority of the transition to a low carbon economy,

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and I will say more about this shortly. I will give way. Clearly

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kit and -- commitment to a low carbon economy it is something

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shared. Can you tell us how inclusion in this document changes

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the support from the Scottish government on this? What it does is

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give the private sector, and also those decision-makers within the

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public sector, the absolute clarity of the direction of government

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policy. What that means is that went private sector organisations

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are looking at the colossal range of investment opportunities that

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exist in the low carbon sector within Scotland, whether that is in

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offshore renewables sector, whether that is in some of the low carbon

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vehicle technologies which some of our companies are pioneering, or

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whether it is in some of the initiatives about ensuring that we

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maximise the utilisation of energy resources within our country,

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private investors can see the Government is absolutely serious

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about this approach. Equally, it is the strongest possible signal to

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those involved in the public sector that we have to make sure that we

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have the skills and labour market composition that will ensure that

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the demands of the low carbon economy can be satisfied by the

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focus within our higher and further education institutions. In all of

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that, it gives policy certainty to the public sector, and clarity to

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the private sector for these investments to be undertaken.

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cabinet secretary mentioned opportunities for employment

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throughout those sectors. Would he agree that it is important to have

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more opportunities for young people in those high-growth sectors,

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particularly given the UN force should figures we had today of

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youth unemployment? -- unfortunate figures? Part of what the

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Government has said, indeed, the First Minister's first paragraph of

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the statement last week to Parliament was about the importance

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of ensuring opportunities for all of our young people. I don't think

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the Government could have attached a greater priority to ensuring that

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providing opportunities for our young people is fundamental. On a

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recent visit I made in the presiding officer's constituency to

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the five energy park, it was clear to me the apprenticeship

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recruitment that had gone on in that facility was very much linked

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to the low carbon economy. I saw more of that at a company I visited

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on Monday where substantial apprenticeship opportunities were

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being created for young people and the Government would endorse that.

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That is my point in response to Mr McDonald, in that of the meaningful

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content of this strategy is not to have a glossy document available.

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It is to say to the key decision- makers within the public sector

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that we expect provision and planning to reflect the contents of

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the Government's economic strategy. Our strategic priority... You need

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to wind up, Mr Swinney. Sorry, my mistake, you have got 14 minutes.

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Thank you, presiding officer. You almost encouraged a very healthy

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transformation in my contribution Our focus on infrastructure,

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development, seeks to harness our cities and rural areas and we will

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ensure Scotland is positioned to take full advantage of the

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opportunities offered by the digital age. Our cities are vital

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to success and later this year we will introduce a strategy to

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support cities and their regions to maximise their potential as engines

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of economic growth. Effective government is our next strategic

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priority, fundamental to the successful implementation of the

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government's economic strategies. It is only by the actions of the

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public sector being fully co- ordinated that we can maximise

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Scotland's economic potential. Finally, the government makes clear

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our commitment to ensuring that growth is characterised by the

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achievement of equity. Social, regional and Inter generational, to

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ensure that the transformation of our economy is driven by these

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characteristics and opportunities. We believe that our strategy should

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focus on the key elements of growth companies, growth markets and

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growth sectors. We should take initiatives to support the

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development of growing companies by the focus of our enterprise

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agencies supporting companies in every way we can and by

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characteristics of schemes such as the small business bonus scheme to

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assist the small-business community in Scotland. The major theme of the

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economic strategy is the expansion of international exporting and

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business development opportunities and that will be the focus of

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Scottish Development International, who will work to support the 1,000

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to 10,000 businesses who we recognise need to develop skills to

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expand their international activities. This work is

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particularly characterised by our focus on the transition to a low

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carbon economy, the importance of ensuring Scotland is equipped for

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digital infrastructure and that we used the instrument of public

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procurement to boost the economic impact of government expenditure.

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These will be the central themes of our strategy, we will maximise our

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powers. We may Clare our aspiration to have a full range of economic

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powers to ensure we can transform the Scottish economy and have it --

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deliver the best opportunities for I now call on Richard and Baker --

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Richard Baker. You have 10 minutes. We welcome the Scottish

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government's economic strategy. This morning there were harsh words

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for the refreshed strategy. While we are not unconditionally positive

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about the new document, we welcome its publication because while we

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have joined with the Scottish government in calling for a Plan B

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from the coalition government at Westminster, whose economic

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strategy is clearly not working, it is equally important for a new plan

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to be put in place in Scotland. We continue to hear from ministers for

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the mantra of recession in Scotland and the rest of the UK. The reality

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is we continue to be in a powerless economic situation. The last GDP

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figures show the Scottish economy on the cusp of returning to a

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situation where it was contracting. Growth of only 0.1%, lower than

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that of the rest of the UK. Today Scottish from the Scottish Retail

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Consortium show the second worst annual drop in sales for 10 years.

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Today's employment figures do show an increase in employment and a

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drop in unemployment against the UK trend and that is welcome, but

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there is absolutely no room for complacency with a significant

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increase in the benefits claimant count and youth unemployment up.

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Levels not seen since John Major's government in the early 90s. That

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is why we have said these economic challenges require a new response

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from the Scottish government. Because despite the focus by

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ministers on demands for new powers, we heard again at the end of the

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speech from the Cabinet Secretary, the Scottish government is far from

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Palace in this situation. It has very significant levers at its

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disposal to influence our economy. The way it spends the budget is

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crucial in shaping our economic fortunes, which is why the Spending

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Review to be published next week will also be so important to allow

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wider economic future. Our welcome for this document is qualified

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because we would have liked to have seen more new thinking given the

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new concerns about future developments in the Scottish and

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world economy. Many of the initiatives are welcome, but they

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are ones which have been previously announced. Of course we can

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particularly welcome the proposals which were brought forward by

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Scottish Labour. It was refreshing and surprising to read George

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cavern of all people giving Labour the credit, rightly, for the

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initiatives which have been brought forward on modern apprenticeships.

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He could have also given us credit for other policies, like the first

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troops scheme for first-time buyers, but I'm sure he will get round to

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doing that another time. Let's get some reaction to that now

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from my two guests this afternoon - Stephen Boyd from the STUC and John

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McLaren from the Centre for Public Policy from the Regions. John, what

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do you make of Mr swingy's statement, talking about growth,

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growth, growth. That was what he was emphasising. He was. That is

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what you would expect him to say. He has to put forward a positive

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message. In reality, like in many other parts of the UK and countries

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around the world, it is difficult to know where that growth will come

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from. The world as a whole is still in recession and it could go into

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double-dip. It is not clear where the increased consumption is going

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to come from all the investment by companies because there are so many

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worrying things still happening, whether it is the euro or American

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house prices or debt levels of things like that. The best he can

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do at the moment is try to keep the Scottish economy in the shape that

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it is well situated for when things pick up. That means keeping skill

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levels up and probably keeping productive capacity through

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infrastructure going. That is the way he is talking about things. Not

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exactly in those terms, but that is what he is trying to do. Mr swingy

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is doing his sums for next week for his draft budget and he will have

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some very difficult questions to face when it comes to cuts. What do

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you think are the possibilities of public-sector redundancies? I have

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more reason to doubt the Scottish government's good faith at this

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present moment to avoid compulsory redundancies in the public sector

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and we have seen efforts from Scottish Labour that we have not

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seen replicated across the UK. There is a lot to be answered.

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There was a report which was not so different from the last strategy.

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As John has said, the UK level is such that the Scottish government's

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ability to influence economic growth is very, very limited.

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Gummer what do you make of that? We were hearing from Richard Baker

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talking about the Scottish government always demanding new

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powers. What do you make of that when it comes to the Scottish

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government actually working within the powers they have? Well, working

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within the powers they have, then it is still quite a lot you can do

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in terms of retaining skills in terms of large infrastructure

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projects, in terms of pushing renewables. If you have more powers,

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there is more potential, but it doesn't mean to say it could do an

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awful lot. Fiscal and monetary policy, monetary policy is already

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about as low as it could be so there is not much more you could do.

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Even if they did have greater control, they would struggle in the

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same way the UK government is. The only thing is if they had more

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borrowing powers, they could deficit fund things, but that is a

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risk as well. But it is another way they could go. One of the other

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things that is difficult... Growth sectors that they want to push. But

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at the minute in Scotland, some of the sectors like tourism and

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financial services are not doing well and they haven't been doing

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well for a while. I couldn't see anything in the growth strategy

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which shows why they should all of a sudden turn around the

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performance and start being providers of taking Scotland

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forward. There seems to be a lack of analysis on how these sectors,

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important as they are, actually work and what is needed to kick-

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start them to make them work better. On the apprenticeships, he was

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talking a lot about apprenticeships. How far can we put our eggs in that

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one basket when it comes to training to try to stimulate growth

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in that way? You're not going to stimulate growth through as

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apprenticeships, you will prepare the economy for a robust recovery

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when it finally appears. Apprenticeships are a very

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important route. Anything the Scottish government can do will be

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welcome. You do have to bear in mind that youth unemployment in

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Scotland is over 20%. We have seen figures today that clearly the

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Scottish government are putting a positive spin on, but there is much

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in the figures that is a cause for concern. Apprenticeships, yes, do

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what you can, but it is not going to bring the economy round. Thank

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you. You're watching Politics Scotland

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from the BBC. Still to come on the programme:

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How to improve education and vocational training for the over-

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16s - the under-pressure Education Secretary will set out his thinking.

0:24:090:24:12

The Labour leader, Ed Miliband, says the Government is "the byword

0:24:120:24:17

for complacency" on unemployment. Meanwhile at a a lively Prime

0:24:170:24:19

Minister's Questions, Sir Peter Tapsell, father of the House, put

0:24:190:24:22

on a display of self-caricature by asking about the 18th century

0:24:220:24:29

before getting to his question about banks. And the Prime Minister

0:24:290:24:37

was even asked about oil revenues Today's figures show that

0:24:370:24:42

unemployment is up by 80,000. Does the Prime Minister still think the

0:24:420:24:48

British economy is out of the danger zone? First of all, these

0:24:480:24:51

unemployment figures are disappointing figures. I don't want

0:24:510:24:56

to hide from that. Every last job is a tragedy for that family and I

0:24:560:24:59

want to do everything I can and this government will do everything

0:24:590:25:05

it can to help those people back into work. That is why we have

0:25:050:25:09

360,000 apprenticeships starting this year, that is why we have

0:25:090:25:13

10,000 extra university places and that is why in the work programme,

0:25:130:25:17

we have the biggest welfare to Work programme this country has seen

0:25:170:25:21

since the 1930s. But at the same time, let me say to the right

0:25:210:25:25

honourable gentleman it is right that we get on top of our debts and

0:25:250:25:29

duller deficits. Her today of all days shows the danger of getting

0:25:290:25:33

into a position other European countries are in whether whole

0:25:330:25:38

credibility is being questioned. and his government on the byword

0:25:380:25:43

for complacency in this country on unemployment. Youth unemployment

0:25:430:25:48

was falling at the general election and it has risen on his watch. It

0:25:480:25:54

is his responsibility. Women's unemployment, too, is at its

0:25:540:25:59

highest level since 1988. Mr Speaker, he is making the situation

0:25:590:26:05

work. By cutting the childcare tax credit. How does it make sense,

0:26:050:26:08

when unemployment is rising for women, to cut the support that

0:26:080:26:13

helps them back into work? Let me just remind the right honourable

0:26:130:26:19

gentleman unemployment went up by 40% under the last government.

0:26:190:26:22

278,000 more young people unemployed when he was sitting in

0:26:220:26:27

the Treasury and breaking our banking system and bankrupting our

0:26:270:26:31

economy. That is what people remember. When it comes to

0:26:310:26:35

childcare, what this government is doing, and we are the first to do

0:26:350:26:39

it, is making sure there are 15 hours of free childcare for every

0:26:390:26:42

three year-old and four year-old and we have extended that for every

0:26:420:26:46

two year-old. We have focussed the tax credit system on the poorest

0:26:460:26:53

people in this country. In the 18 San Shroot -- century it was the...

0:26:530:27:02

In the 19th century it was the roofless industrialists humanised

0:27:020:27:08

by Shaftesbury. In the 20th century it was the trade union leaders

0:27:080:27:18
0:27:180:27:23

tamed by Lady Thatcher. In the United States... The federal

0:27:230:27:30

authorities are prosecuting a wide swathe of the top banks. When is

0:27:300:27:35

that going to happen here? I think the serious point the right

0:27:350:27:39

honourable gentleman is making his right, we do need to see

0:27:390:27:43

responsibility from our bankers. I rode -- I support what John Vickers

0:27:430:27:47

have said in terms of reforms. If people break the law, no matter

0:27:470:27:50

where they come from all who they are, they should face the

0:27:500:27:55

consequences and be punished. poll last week showed 68% of Scots

0:27:560:28:01

want oil revenues devolved to Scotland. Does the Prime Minister

0:28:010:28:11
0:28:110:28:19

agree that 68% of Scots -- Withe Well, if you ask a stupid question,

0:28:190:28:24

you will get a stupid answer! The fact is, the whole of the United

0:28:240:28:27

Kingdom rightly has invested in the North Sea. The whole of the United

0:28:270:28:31

Kingdom should benefit from the North Sea. I think we should do

0:28:310:28:35

everything possible to keep the United Kingdom together because we

0:28:350:28:40

are stronger, England, Scotland, Northern Ireland and Wales, than we

0:28:400:28:42

ever would be separate. Party conference season is almost

0:28:420:28:45

upon us for the UK political parties. The TUC have already been

0:28:450:28:48

meeting and it's been a challenging time for the Labour leader Ed

0:28:480:28:51

Miliband. Let's cross to London and to our correspondent David Porter

0:28:510:28:58

who's gauging the mood at Westminster.

0:28:580:29:02

At times like this I am reminded to use that old political adage, it is

0:29:030:29:07

the economy stupid, and with unemployment rising, the euro

0:29:070:29:10

economy in dire straits, and the trade unions are threatening strike

0:29:100:29:15

action, there is no shortage of things for the Government, and

0:29:150:29:19

indeed ammunition for the opposition parties. No shortage of

0:29:190:29:23

things either to discuss. I am joined by two political

0:29:230:29:27

commentators. Catherine, let me start with you. Unemployment

0:29:270:29:32

figures out today. You know from your time when you were advising

0:29:320:29:35

Alistair Darling in the Treasury, when unemployment is rising, it is

0:29:350:29:39

never a good time for the Government, is it? No, it is a

0:29:390:29:43

terrible time for the Government went to 0.5 million people are

0:29:430:29:46

unemployed and they will be very worried about it. George Osborne

0:29:460:29:51

will be thinking very hard about how he can rectify the situation. I

0:29:510:29:55

don't know if he can do that without changing his plan, because

0:29:550:29:59

up until now he has been hell bent on cutting the deficit, which he

0:29:590:30:02

certainly has to do, but perhaps he has got to do something else as

0:30:020:30:08

well. It was noticeable that today at Prime Minister's Questions that

0:30:080:30:12

there was not even one iota of a plan B. You get the impression they

0:30:120:30:16

are battening down the hatches on this one. They are trying to

0:30:160:30:19

maintain an aura of stability. I'm not sure David Cameron did that

0:30:190:30:23

today. He seemed tired after his Moscow trip and had not really

0:30:230:30:27

prepared for premises questions, and he seemed to be constantly on

0:30:270:30:30

the defensive. It feels that it is very much a government fighting on

0:30:300:30:34

every front at the moment, and as a result there is a feeling of

0:30:340:30:38

disarray. That is the opposite - they need to create the idea of

0:30:380:30:43

stability. Opposite to him was Ed Miliband, who did all right, but I

0:30:430:30:47

still don't know myself quite what Labour's economic policy. As long

0:30:470:30:53

as that uncertainty prevails, I think David Cameron is OK. You talk

0:30:530:30:57

about the trade unions, and you can already see as a newspaperman the

0:30:570:31:02

headline writers writing winter of discontent, but how serious do you

0:31:020:31:06

see this in political and economic terms? The trade unions are trying

0:31:060:31:11

to top this up. Yesterday, Ed Miliband went to the TUC and got

0:31:110:31:14

tackled. I think that draws him water was the centre ground if he

0:31:140:31:18

is an opposition to the unions, but is it actually going to happen? Are

0:31:180:31:22

we going to have a bad winter? Let's hope not. It is a tricky one

0:31:230:31:27

for Labour this, isn't it? Ed Miliband can't condone the strikes,

0:31:270:31:31

but he knows that is what his union friends want him to do. Yes, it is

0:31:310:31:35

very tricky for Ed Miliband. He will not want them to strike. He

0:31:350:31:42

will think that they will be taking the moral high ground away from him

0:31:420:31:45

because I think the economic figures are not going to get any

0:31:450:31:50

better. We are going to get higher unemployment. Ed Miliband will want

0:31:500:31:55

to capitalise on these figures if the trade unions persist in having

0:31:550:31:58

a strike, and it is believed that they will, then that will just

0:31:580:32:03

detract from his positioning. are about to come to the party

0:32:030:32:07

political conferences, when the Westminster decant to various

0:32:070:32:10

cities throughout the UK. It will be one of those areas where there

0:32:100:32:15

will be mixed fortunes for all of the main parties, I went there?

0:32:150:32:21

Miliband has to overcome deep held scepticism within his own party

0:32:210:32:25

that he could be the next prime minister. I think David Cameron has

0:32:250:32:30

to reassure the Tories before he reassures anyone else that he is on

0:32:300:32:33

course. I think a lot of Tories in Parliament are jittery because they

0:32:330:32:37

don't know what he is standing for. And Nick Clegg has got to convince

0:32:370:32:41

the Lib Dems that they have not sold out, that they are not their

0:32:410:32:45

letting the Tories run riot in the country. It is a bit of a false

0:32:450:32:49

world when we all go to conference... It is absolutely

0:32:490:32:54

bonkers. The party conferences are mad, particularly this year. It is

0:32:550:32:59

going to be most peculiar. But we are all going to be, as a political

0:32:590:33:05

journalistic class, we are going to be obsessing about these tensions.

0:33:050:33:09

Are they going to have any real effect on the economy and on

0:33:090:33:13

Britain's prospects? I suspect not. For a question briefly to both of

0:33:130:33:21

you. Party conferences aside, whatever happens, British economy -

0:33:210:33:26

- the British economy is in for hard graft, isn't it? I think it is.

0:33:260:33:31

There is any so much that David Cameron and George Osborne can do.

0:33:310:33:34

Events -- it matters they much what happens in Europe and America. In a

0:33:340:33:39

way, they are bobbing along in the wake of these catastrophic events

0:33:390:33:42

that are happening in Europe and America, and they should not be

0:33:420:33:46

underestimated. It strikes me that we are still living in a dream and.

0:33:460:33:50

We don't quite understand the effect that the changes are going

0:33:500:33:54

to have, the reductions in public spending. I think a lot of people

0:33:540:33:58

have not quite grasped what is about to happen. Thank you both for

0:33:580:34:04

joining me. We will be packing up shortly to go to that of bonkers

0:34:040:34:09

world, better known as the party conferences. David, thank you for

0:34:090:34:11

that. Back to Holyrood now, and a major

0:34:110:34:14

announcement by the Education Secretary Michael Russell on

0:34:140:34:24
0:34:240:34:24

Apology for the loss of subtitles for 81 seconds

0:34:240:35:45

I think a lot of the things around education and training are up

0:35:450:35:50

complicated. We need to simplify this. We can deliver that bed and

0:35:500:35:53

an income and that is important because we want to make sure that

0:35:530:35:57

young people are not deterred from study. A lot of the noise

0:35:570:36:01

surrounding further and higher education is deterring young people

0:36:010:36:05

because secure these ludicrous figures. We are trying to focus

0:36:050:36:08

people on the opportunities in front of them and the opportunities

0:36:080:36:14

that leads to. We will get onto those charges but staying with

0:36:140:36:19

colleges, you talk about mergers. What would that mean in practice?

0:36:190:36:23

They will undoubtedly been job losses. It will mean greater

0:36:230:36:27

efficiency in delivering. We have talked in the paper about a

0:36:270:36:32

regional model and we need to move to that model to make sure resource

0:36:320:36:39

goes into the frontline and we encourage colleges to have a policy

0:36:390:36:43

of no compulsory redundancies. So we have challenges but I am sure we

0:36:430:36:51

can meet them with imagination. Let's turn to those charges. Would

0:36:510:36:56

you agree with the First Minister? He said, would you prefer a more

0:36:560:37:01

moderate approach? Yes, he is right. We have not seen the conclusion of

0:37:010:37:08

this process. We have not yet had half of the university's... We have

0:37:080:37:14

had a significant ones. It seems to be running out of control? We have

0:37:140:37:19

had the ones who were always going to be at the top end. We have had

0:37:190:37:25

less than half of them. Let us see what the springs at the end, the --

0:37:250:37:30

expectations of the technical working group, we have to see what

0:37:300:37:34

happens and the First Minister is right to express his disappointment

0:37:340:37:37

and we share that. We have been looking at unemployment in the

0:37:370:37:45

programme. This has been a very poor area for the SNP. Labour

0:37:450:37:50

claimed it has increased by 89% since the SNP to power. Will these

0:37:500:37:57

measures really address the problem? Accuracy is all,

0:37:570:38:04

particularly for journalists. Today is a good news story, youth

0:38:040:38:07

unemployment actually is better than we have done. Better than

0:38:070:38:12

governments have done, particularly well in delivering training. When

0:38:120:38:16

Labour quote figures, it is best to check them and I find they are

0:38:160:38:22

usually not accurate. Thank you very much for joining us. Let's get

0:38:220:38:28

accurate analysis from our guests. John McLaren and Stephen Boyd from

0:38:280:38:35

the STUC. Stephen, I will ask you about youth unemployment. He did

0:38:350:38:40

not think the figures from Labour were correct. Is this a problem

0:38:400:38:45

that is concerning for the prop -- the country? Absolutely. The worst

0:38:450:38:49

thing that can happen to a person of any age is to spend an extended

0:38:490:38:55

period of time unemployed. It has a massive impact on their future life.

0:38:550:39:01

It is very expensive to the country. In a social sense and economic. We

0:39:010:39:05

should be very concerned about this and I will not get involved in any

0:39:050:39:11

political debate about figures. It is far too high in Scotland and

0:39:110:39:16

that has increased significantly over the last couple of years.

0:39:160:39:20

have focused on the economy and employment. We hear about this in

0:39:200:39:26

terms of the world economy and the French banks and the credit rating.

0:39:260:39:30

There are meetings in Brussels to discuss the Greek debt. In terms of

0:39:300:39:39

the global economy, or be on the brink of an abyss? -- are we.

0:39:390:39:47

difficult to tell how it that it could get. I saw in 2008 when it

0:39:470:39:53

really got bad it was not predicted, we thought 2007 was a turning point.

0:39:530:39:57

Any sort of catastrophic change will probably come out of there

0:39:570:40:01

fairly clear sky but what is more worrying is it is difficult to see

0:40:010:40:06

were any upturn welcome from. I cannot see it the European

0:40:060:40:12

situation and Greece being sorted out in any way that they want. Only

0:40:120:40:15

in a way that they do not want. With something bad happening to

0:40:150:40:23

Greece. Nobody wants that so it will keep on going for months and

0:40:230:40:28

years and that means the uncertainty keeps on going. It is

0:40:280:40:35

difficult to build confidence. But in America, they are not really

0:40:350:40:39

planning, never mind in short-term, in the long term, to balance the

0:40:390:40:43

budget and house prices are still falling so there is a lot of

0:40:430:40:47

negative still going on. And the markets are not confident they have

0:40:470:40:52

this sort it out. Until that changes, and we can get confidence

0:40:530:41:00

that we know what will happen, there will remain a lot of sluggish

0:41:000:41:03

growth and even if things get better, I do not think growth will

0:41:030:41:08

rocket. It will be a prelude to another fall. We are going in for

0:41:080:41:17

more than one decade of slow growth. We can see tutors and the market,

0:41:170:41:21

civil unrest with the England riots and that good old cliche of the

0:41:220:41:29

winter of discontent. The public sector workers going on strike. How

0:41:290:41:35

bad could these strikes be in Britain? It would be irresponsible

0:41:350:41:39

to speculate. Despite everything that has been said, negotiations

0:41:390:41:44

will continue so it isn't inevitable these strikes will ochre

0:41:440:41:47

and it is fair to say that there is a wave of anger among ordinary

0:41:470:41:53

trade union members that is very high at this moment. They have seen

0:41:530:41:57

wages falling significantly and job prospects following and pensions

0:41:570:42:01

attacked and they are being encouraged to go see it by Mr

0:42:010:42:06

Miliband and others and the indexation of pensions was not

0:42:060:42:11

changed without any negotiation. Quite how this will transpire

0:42:110:42:16

during the course of the winter is difficult to say. It is possible we

0:42:160:42:22

will see strike action and it might not be as bad as we feel. We have

0:42:220:42:25

seen leaders calling for strikes not to happen, including Ed

0:42:250:42:30

Miliband. How far has has been promoted by the trade union leaders

0:42:300:42:35

themselves? The BBC website has a comment from a reader who said the

0:42:350:42:41

main civil service trade union is dominated by a left wing group. How

0:42:410:42:45

much is being governed from the top and do the workers really want to

0:42:450:42:52

be on strike? It is interesting. We have seen massive changes to that

0:42:520:42:57

trade union legislation and the simple fact is, trade union leaders

0:42:570:43:01

cannot take the unions out on strike in the win over told they

0:43:010:43:10

used to do. -- in the way we were told. It happens in an informal --

0:43:100:43:18

formal and secret ballot. And leaders simply are not able to do

0:43:180:43:23

this in the way described by newspapers. The PCAS should point

0:43:230:43:29

that out. The anger amongst members is understandable. They are

0:43:290:43:32

effectively organised and if encouraged to band it, there is

0:43:320:43:38

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