16/03/2014 Scottish Conservative Party Conference

Hello and a very warm welcome to our coverage of the Scottish

Conservative conference. We will be on air for the next two hours,

giving you live coverage of the leaders speech along with interviews

from Tory grandees and new bees. The Tories are in Edinburgh with a rally

to save the union. It is the last conference before the referendum.

There are some entrenched views within those grandees and new

members alike. I will bring you all of the debates, discussions and

deliberations among the Conservative representatives.

The conference hall is filling up with representatives from across

conference -- across Scotland, waiting for the leaders speech in 15

minutes time. waiting for the leaders speech in 15

Thank you for being with us, the party appears to be in buoyant mood

with every sinew straining to save the union. Our political

correspondent has been at the Edinburgh International conference

Centre over the last few days. The main event is the address to

conference by the Scottish leader Ruth Davidson, and we know in

advance that the heckling announcement from her speech is a

commitment from the Conservatives to recruit an extra 1000 nurses and

midwives in Scotland if the Tories have a say in government after the

2016 Holyrood elections, they say they would recruit 1000 extra and

maintain nurse and midwife numbers at that level. In the same way that

the current Scottish government has done with police officers. How would

they pay for this? They say they done with police officers. How would

would end the universal provision of free prescriptions, they would still

be free for deeper, the young, pensioners, pregnant women, but

those who could afford to pay would be asked to do so. It seems that her

emphasis will be on a practical policy commitment looking ahead to

the next Holyrood elections rather than on the constitutional debate,

of course the prime minister touched on that in his speech and promised

that the Conservatives would deliver more powers for Holyrood in the

event of a no vote in the referendum.

Also standing by at the conference centre waiting in anticipation for

the leaders speech we have Brian Taylor. Ryan, always traditional to

ask about the mood of the conference. It seems that

conservatives are enjoying having a fight on their hands. I think

conservatives are enjoying having a probably is right, it gives them a

place in the limelight as part of the wider Better Together campaign.

When the Prime Minister spoke yesterday he had remarks about the

economy, added the international situation, but it was his remarks

about the union that drew applause. One of the mention our United

Kingdom the Conservative representatives were clapping wildly

in the stalls. That is indicative of the mood here, they are talking

about the union. At the same time behind the scenes there is a very

substantial discussion going on about the scope of the Conservative

offer on more powers, and hast powers for the devolved Scottish

Parliament in the event that there is a no vote in the referendum.

There is a commission being appointed under the aegis of Lord

Strathclyde, they are appointed under the aegis of Lord

now, they will report at me and then there will be a response from the

Scottish Conservative leadership. The top here is very much of it has

tax powers for the Scottish Parliament. I say that because one

of the persons we mentioned was none other than the Prime Minister. This

is choreographed, you have the Strathclyde commission and the

Scottish leadership and they know that if this is to be a serious

offer it must be one that can go into the manifesto for the next UK

general election. People will say that the Tories do not matter in

Scotland, they are small, the old gag about fewer Tory MPs that there

are pandas, and that is all very well in the legitimate target for

the other parties to point out. The thing to point out with regard to

devolution of powers rather than independence is that it would have

to be done through the Westminster Parliament, done by the Westminster

government and that could be the Tories. The ball is very much in the

April union party's court this week, over the next few weeks Labour

will announce the result of their devilish in committee, on Tuesday.

This means that the spotlight is on what they are offering and if that

offer is seen by the opponents, much more importantly if it is seen by

the Scottish people to be inadequate then it could put further pressure

on them rather than enhance what they are offering. It is certainly

where the spotlight is. It is you as the discussion of the Conservative

party conference although the offer will not come for a few months. We

get the labour offer in the middle of the week. We know that the

Liberal Democrats are offering substantial tax powers devolved to

Scotland. One reason is time, another reason is that they do not

all agree and on the issue of agreement, one thing that has been

mentioned in the holes here at the conference venue is that one thing

Labour are determined to defend the number of Scots MPs at Westminster,

even if there are more powers. Gordon Brown said that the UK would

have a defined role on defence security and well-being and those

things require a significant number of MPs to be there from Scotland at

Westminster determining those matters. The Tories would probably

see if there is a real devolution of tax powers then maybe you can cut

the number of Scots MPs. Not easy to see how that can be resolved but the

thing about that one is it is not an intellectual or ideological argument

it is actually a partisan argument as to their interests lie. We are

looking at an important event on Wednesday this week with the budget.

With Davidson will be addressing that in her speech, likely to call

for looking at whiskey duty. And we will have that pressure on this

programme we will hear from Ken Clarke, who I spoke to on this issue

on whether you should support those who are at the Rose level of income,

whether you need to remove the propensity to go into tax at a low

level of income or two former guitar solos, Nigel Lawson or Norman Lamont

is it you should help those boys going into the 40p ratio. Ken Clarke

said very strongly that it should be the lower rate people who are

helped, that is how he thinks George Osborne is going. This is an

intellectual ideological discussion Osborne is going. This is an

in the Conservative party where we will lend the short-term outcome on

Wednesday. Thank you for just now. In the studio a man who has given

our time in his allotment, Professor John Curtis of Strathclyde

University. It is unusual for us being here this Sunday. What must

Ruth Davidson see in her speech? Let's put that the improved offer

devolution. That will be an important part, we anticipate. One

of Ruth Davidson 's crucial tasks will be to persuade her party that

indeed it should back for the Volvo tax powers and responsible it is. --

back devolution of tax powers. This is about the Conservative progress

down this path, originally is about the Conservative progress

Davidson said she was against the idea, she refused to discuss it at

last years conference. It has not been the agenda at this year 's

conference and the proposals will only be published afterwards.

Presumably it is optimum Davidson to decide what she except herself. This

raises questions about whether or not she will have the clear backing

of her own party for whatever ideas emerge. Whatever reaction we see

today to whatever passages appear in that speech and what she has to say

about devolution will be interesting because there is a section of the

Scottish Conservatives this view is essentially that we were not very

keen on devolution in the first place, we'll post it in the idea

that we will give more powers and responsibilities to this body is

something that we still find difficult. It'll be interesting to

see how are otherwise the reaction is to those passages. We also picked

up on the budget when we were talking to Brian, she had the

hotline to number 11 Downing St so we are looking for some

announcements there. We are just about to head to the main hall at

Edinburgh International conference Centre, because we are just about to

hear from Ruth Davidson. She is on the stage about to give her speech.

Receiving applause from the members of the audience.

Thank you. Thank you. Conference, we gathered here today on the cusp of

an incredible few months ahead. Glasgow welcoming the world to the

Commonwealth Games, marking Glasgow welcoming the world to the

of our service men and women on Armed Forces the instrument, and the

best sporting duel on the planet, the Ryder Cup coming to Gleneagles.

Big events, all in themselves, but we now gathering here today that an

even greater date faces us, too. This September we face the biggest

vote this country has ever seen. It is not another election where you

can vote again in five years time if you do not like the results. We are

talking about the very fabric of our country. We are deciding the fate of

nations. And we will all play a part. I want to thank you all for

card-carrying members to volunteers to the professional staff to all of

our elected members who are stuffing envelopes, knocking doors, is riding

friends and reassuring family. You know there is

friends and reassuring family. You know we are in the fate of our

lives, you know it is a fight we can win and the fight we are going to

win. APPLAUSE

I want to single out Stewart Stevenson, a man who has flown the

flag for Scotland the European Parliament for 15 years. Serving

this parliament and fighting for this country. I also want to thank

him for starting my political journey because when I was a

journalist I worked for his wife, she was my editor. Six years ago we

sat in the kitchen of his flat in Glasgow and the encouraged me to

stand as a Conservative candidate for the first time. He signed my

knowledge informs and gave me a reference. Almost all of this is his

fault. He has also always believed in bringing forward the next

generation and Ian Duncan, leading Conservative candidate in European

elections, we have a worthy successor to take on the Brussels

bureaucracy. There is one of Pearl to thank. And

it pains us all that he is not here today. Conference, David McLetchie

took the reins of this party when we were at our lowest ebb. It was not

in his nature to blood or more, with energy and wit and wise judgement he

picked this party and steered us to a better place. This commitment

never wavered, his service never stop. Attending

never wavered, his service never after others would have been able,

diving in two meetings of the Better Together great that he set up with

Alistair Darling, lesser men would have faded away. Not David. He

believed in our nation and believes it is a great nation and wanted to

show the world that we are stronger together, that we are Better

Together. We need is to make sure that the country he loved and fought

for sticks together. So let's honour David 's memory by working to make

that happen. And you better work hard because he will be watching.

Conference, About why those values should be

cherished and why we conservatives are the people to take this country

forward. My belief in our ability to do that is based on our most vital

national asset, her people. As I travel in Scotland I need people

from every corner of our country who share our belief aspiration in

responsibility and hard work, he wants the government to give help it

is needed and get out of the way when it is not. People who want to

know that if they do the right thing, if they work hard and provide

for their family, if they play by the rules in the country will do

right by them. And I know it is tough. People are uncertain about

the road ahead. Jobs are less secure, first-time buyers are still

struggle to get a foot on the property ladder. The cost of living

goes up but the size of your pay packet doesn't. We do understand and

we will stand by you and speak up for you, at Westminster Abbey of cut

the jobs tax and brought down income tax to help more people into work

and give them more money in their pocket once they are better. We

raised the state pension and minimum wage, we have cancelled the fuel

duty escalator, sitting people celebrate Hank Weekley ?370 per

year. At holiday to be fed for the next generation to stop cuts to

colleges, vital in training people for work. Ludicrous proposals that

say state oversight proposed on every child in Scotland and a suck

it and see approach to justice. Conservative common-sense has never

been more needed. Our voice is loud, it is growing, we are here to fight

for your community, your family, we're here to fight for you.

APPLAUSE. I have heard all the jokes about

pandas and phone boxes and I have to say that the EICC hasn't looked like

a phone box this weekend. In the last two decades we have been told

time and again that we are out of touch, not relevant, that we don't

get it. Not any more. I'm here to tell you that on the big issues

facing our country, we stand for the people of Scotland. We are fighting

to keep our country together and are backed by the majority. On welfare,

we see that welfare should always pay and that is what Scotland thanks

to. On the deficit, we are controlling spending because it is

immoral to shackle our children with debts and the country agrees. On

immigration, we want the numbers down and so does Scotland. And what

about what the SNP wants? On independence, they are in the

minority, an unreformed minority, they are in the minority, an

spending they are in the minority, refusing to trust people on Europe,

in the minority there as well. And people are starting to notice. They

are starting to notice that we are on the right side of the argument.

Scotland's seas that we are fighting tooth and nail to keep our country

together and that more than 80,000 people have joined the Conservatives

to stand with us. We have taken our message of fairness and

responsibility, hard work and just rewards, to the doorstep of this

country. More and more people are putting their cross in our box. 11

straight council by-elections were the Tory vote has gone up. The last

time the party did that was in 1974 and I wasn't even born. In the last

general election, the number of people who voted for us should be a

platform and not a ceiling. We have to speak loud and proud and

encourage others to do the same. Sometimes it is hard to come out as

a conservative, and I should know. I was in the bosom of the BBC when I

broke cover. But if you believe in sound finances

then you are a conservative. If you believe in personal freedom, choice

and responsibility then you are a conservative. If you believe an

aspiration and opportunity and that success is not a dot

aspiration and opportunity and that something worth striving for, if you

are a conservative. If you believe that decisions on local services

should be decided locally, not centrally, you are a conservative.

If you cherish and believe an issue of an family, community and rolling

up your sleeves and getting stuck in, that makes you conservative as

well. I wanted to vote for your beliefs and I want you to help us

fight to keep our country together. I want you to give something back to

the taxpayers of Scotland and help turn our schools once again into the

envy of the world. I am changing the face of this party and in so doing I

am changing the faces of this party. More MPs and MSPs mean more

conservative common-sense in Parliament and I need you to help us

make that happen. I don't care where you're from, what you went to, your

age or race or sexuality, what I care about is whether you care.

Whether you want to change our country for the better. If you are

willing to give up your time, talent, yourself to make that

happen. If you have ever wanted to be involved in public life but

didn't know where to start then come to us because we want you to come

forward. I am fighting for the future of this country and I want

you standing up here it beside me. APPLAUSE.

Is a party, our voice is loud and it is growing but I wanted to grow much

further. How do we do that? We do that by focusing relentlessly on the

things that matter. In my book, top of that list are the opportunities

that we as an Asian pass on to the next generation. Scots have always

known the value of education and I know that personally. I got a good

education and I have always been grateful for it. But that wasn't

yesterday. The world is moving on and we are not keeping pace. If you

look at the results of the latest studies, be sure that little if any

progress has been made in the last five years in Scotland's performance

in international league tables. I know that there is great work being

done in our schools week in and week out, teachers inspiring their

peoples, pupils that are hungry to learn, the problem is that when it

comes to educational achievement we are neutral while many competitors

internationally accelerate ahead. I could hear the SNP response that we

are doing at least as well as other parts of the UK. But that is not

good enough and it is desperately narrow-minded. Because the

competition that our young people face for jobs in the future isn't

just from kids from Birmingham or Swansea, they will be facing a

highly motivated workforce from the Far East and other emerging

economies. So we have to set our sights higher still. Have the

economies. So we have to set our confidence and ambition to match the

best the world has to offer and win. The greatest gift that this

generation can give to the next is an education system that truly

prepares Scotland's young people per the challenges of Jacob Pettit of

economy. That means reforming to education. -- challenges of a

competitive economy. We want to end the monopoly of mediocrity that

traps too many Scottish children into lives of low expectation. Not

all children learn the same and they shouldn't be taught the same. I want

more choice and more power for parents, to select the right type of

school for parents, to select the right type of

the postcode lottery which locks thousands into failing schools. More

rewards for good teachers and showing bad teachers the door. It

means rigorous exams to stretch the brightest pupils and more

opportunities for those whose interests lie in the vocational. We

too often feel the ablest without giving real help to those who need

it most and it is time that changed. It is time every Scottish child was

given the same fair shot of success, no matter their background.

I am not so naive that I believe background doesn't play a part but I

am ambitious enough to believe that the rate support and encouragement,

any child no matter the circumstances can succeed. And I

believe to my core that greatest disadvantage anyone can suffer is to

be written off because of their background, to be told that they

won't get good grades, will get a good job, want get on in life. That

is not my way because I believe in young people and that is not the

conservative way either. APPLAUSE.

We will fight for the reforms to give every Scottish child the

education they need and the fair shot in life that they need. If

Scotland's young people work hard they know that the government would

be dipping deep into their pockets. If we think about the SNP's

contortions on this. They want multinational corporations like

Amazon and Starbucks to pay less tax in the UK but they stubbornly

proposed cutting the UK tax bill of the hard-working people. That

doesn't make sense and is not fair. They see a tax cut for Starbucks is

a good thing but a tax cut for the person working behind the counter is

bad. When I see a strong working-class, I mean anyone who

gets up and earns a wage to support themselves and their families. The

everyday grafters of Scotland. Those hard-working people who deserve the

government who values hard-working people who deserve the

efforts. A government that lets people keep as much as possible what

they earn. It isn't just a question of economics, it is a question of

values. Too many people believe in government money, they are to spend

as they wish, but there isn't a only money governments have taken from

taxpayers. APPLAUSE.

I think successive governments have taken too much. We shouldn't be

dipping deeper into the Bulls pockets. We should insure that there

are more pounds left in the pockets to spend on the local shops, to

invest in the local community, or to save for their children's future.

That is why we are committed to cutting the tax bills of working

Scots. Lowering personal taxation and raising the threshold. George

Osborne didn't get into politics as a popularity contest but that isn't

the point. He is in this for a long haul. To make sure that Britain is a

low debt, low tax success story that can take on Asia's tiger economies

and win. We are turning the corner. The deficit cut by a third. 1.3

million more jobs in the UK. But in's economy growing faster than

France, Germany, America, Japan. Of course there is still a long road

ahead and tough decisions to make. And in no area does it get more

difficult than in sorting out our welfare system. But sort it out we

must. Under the former Labour government, 1.4 million people were

unemployed for nine out of its last ten years. They were left on the

scrapheap is a government that cared more about what people couldn't do

than what they could. On Monday, I visited one of the projects and --

in Glasgow ensuring that people have the right support. Staff by nurses

and occupational therapists and run on a social enterprise model, it

channels any money it makes back into the NHS. People forced onto

benefits because the new work wouldn't pay. Most who would love a

job if only the system would reward them. By increasing the minimum

wage, we are doing that. By bringing in the Universal Credit we are doing

that. By bringing in the biggest back to work programme we are doing

that. By ending the politics of the scrapheap that only look to people

-- what people couldn't do but what they could, we are acting. APPLAUSE.

I don't resile from Iain Duncan Smith's reforms one bit. I support

them all the way. And while the SNP generates sound infuriate, this is a

party that has shamefully failed to produce a single idea on welfare

reform, the most vital area in Scotland. They haven't a clue how to

sort out our welfare state and that is the real disgrace.

APPLAUSE. Opportunities for the next

generation: A fair return for Scotland taxpayers, an NHS that

continues to be the envy of the world. Millions of people across

Scotland have cause to be grateful to the health service of this

country for this care that it provides an what is often the time

of their needs. Many or their lives to the NHS and I should go because I

am one of them. When I was five years old, I was run over a truck --

by a truck. I was given a 50% chance of living and had to learn to walk

again. I is seven, I was playing football with the boys. It is

sometimes said that the NHS is the closest thing we have two a national

religion and I know that I have eight good reason to say prayer for

all that alert the hunt for me. Public satisfaction with the NHS is

rightfully high. But there are choices we can make to improve care

and down the country. Under the SNP the number of nurses

and down the country. Under the SNP Scotland has gone up and down like a

Fiddlers elbow. 2000 posts gone in just a few years. We are now

hundreds of places down, creating intolerable pressure for those left.

Millions are spent on bank and agency nurses to plug the gap. It is

not good enough, not for the staff, not for patients. For the young monk

turfed out of the maternity ward in the same day she gives birth, for

the post of patient waiting for a bed pan because staff are rushed off

their feet. For the nurses own health suffers because of stress. It

is time we get something about it and that is why today I am able to

announce that we will place a further 1000 nurses and midwives for

Scotland at once introduced the B will not let not -- numbers drop

below that mark. APPLAUSE

. We will pay for it by restoring the prescription charge, not for the

young, the pensioner, the pregnant or pure, they will be exempt as the

always wear, but for people who are earning, people who are

overwhelmingly happy to make a contribution they will know that the

small sum will make a massive difference. Politics is about

choice, the decisions you make and the consequences of your actions.

Alex Salmond said that on his six-figure salary he should get free

aspirin. I say we should have enough nurses to do the job. Enough nurses

to allow patients to get the care that they deserve, enough nurses to

ensure health care workers get the support they need. That is my

priority, that is the Conservative priority. Aspiration, hard work,

responsibility. These are our values. But there is one more. And

that is unashamed, unselfconscious, unapologetic love of our country. We

argue Scottish Conservative and Unionist party. Both Scottish and

union as they are for a reason. We feel no conflict between our

Scottish and British identities. We know that one, laments the other.

That we gain more from our shared endeavour than we ever could from

splitting apart. We will face today and tomorrow and every day between

now and the referendum to defend Scotland's place in the United

Kingdom. APPLAUSE

. On the 18th of September the Scottish people will vote in the

result will not just decide Scotland remained part of the United Kingdom,

but if the United Kingdom is to exist at all. It is the most

momentous decision of our lifetime, and its outcome will affect all of

us. My view is a straightforward one. We have a history to be proud

of and a future filled with the promise of even greater things. The

UK's successes are our successes, too, because we have built this

union. Scotland, England, Wales and Northern Ireland working together in

those arguing for independence for Scotland claim it is the only way to

be like the ambition of the Scottish people. The only way to get the

change Scotland's needs. But that is not true. I want to change,

change Scotland's needs. But that is wants change, but you do not need to

separate your country to get it. Under devolution Holyrood has

already full control over the great public services that we will ion, on

education, on health, on policing. The Scotland act delivered by the

Conservative led coalition will soon see the biggest transfer financial

power to in 300 years. That is the mark of a reforming government which

listens to the people of Scotland, which understands their aspirations

and which is committed to taking the steps needed. The process does not

end there. The Strathclyde commission, set up to examine

devolution, to make it more effective and Steve -- and more

responsible, the result of his report will be published in May and

in good time for people to see before they vote. We are 100%

committed from the Prime Minister down to make sure that after a no

vote we deliver a settlement that the people of Scotland want within a

union that the people of Scotland want to keep. A settlement that is

built on conservative values. Responsibility and accountability to

the taxpayer of this country. He no vote allows devolution to develop.

Independence killed it stone dead. The Strathclyde commission,

irresponsible Scottish Parliament, independence defeated and a stronger

United Kingdom. In the last year we have seen

arguments from both sides, issues of currency, pensions, jobs, Europe,

oil, hitting the headlines day after day. When the supermarket said that

independence would cost their customers more, the Nationalists

shouted them down. When standard life said it was already setting up

companies outside of Scotland to transfer work in the event of

independence the SNP ignored them. When oil receipts, said, taking with

them the cost of every school in Scotland, Alex Salmond was in

denial. And when the Chancellor, the shadow chancellor, the Chief

Secretary to the Treasury, the permanent Secretary to the Treasury

also that the currency union was not in the rest of the UK's interests

the separatists said they were all making it up. I think Billy Connolly

said it best when he said I love Scotland, but I hate the way the

Nationalists think they own the place. It is not just Scotland that

they think they own, but the decisions of other countries, too.

When the head of the EU and the commission said that an independent

Scotland would have to apply for membership and join the scenes you

as everyone else Alex Salmond said they did not know what they were

talking about. He alone knew that Scotland would have its path

smoothed and all 20 member states with any requirement, acquirement to

join the euro or Schengen or give back the rebate. And George Osborne

laid out the fact of the currency unions in Edinburgh and come where

forensically detailed why the rest of the UK would not buy it, first

ministers said that he was wrong. He knew better. He knew that despite

seeing the disaster in the Eurozone, the wreckage that happens when

different countries currency and interest rates and pursue different

tax and economic policies, the UK with the job at the chance for the

same. The governor of the Bank of England says currency zones mean

ceding sovereignty, giving up England says currency zones mean

control. But our brave First Minister thinks people south of the

border would love to hand him some of the rings, just after he has told

them to shove off. The Chancellor made it clear that leaving the UK

means leaving the UK pound at all that underpins it. I love the SNP is

not familiar with the concept but it is called independence. Ten sellers

understand, Dennis cannot understand that and Patrick Harvey gets it,

too. But the last few months have taught us that Alex Salmond is

utterly incapable of accepting the consequences of his own actions. He

was caught spraying graffiti he would blame the wall.

But the rest of us, we can see it all too clearly. We see the work of

our countrymen and women and when we look around the world we see our

exports to France and Germany, America and Japan and China and

Brazil and India, we look at them and we double what we see at it is

still not as smart as Scotland sells to England, Wales and Northern

Ireland. We looked at her pension, the money put aside to provide for

ourselves and our families and we know it will be there in her old

age, they don't independence of which it was saved. We look at our

armed Forces and we see Scots serving with the Welsh brethren,

with soldiers, sailors and airmen from England and another, too. The

most professional fighting force on this planet and one that we are

proud to be a part of. We looked at financial services, our banking

services, and oil companies and engineers, the men and women across

this country who work from Lloyds, for RBS, BP, Shell, and we want

these jobs, all of these jobs to stay. The union provides

opportunity, stability, security and prosperity and we are fighting head,

heart, body and soul for that union because it is personal to all of us.

It is certainly personal to me. As someone who served in a reserve

Armed Forces I do not want to see our Army, navy and air force broken

up. As someone who works in one of our great shared institutions, the

BBC, I don't want to direct a part to the detriment of all others. As

someone who has lived and worked in Scotland her whole life and never

anywhere else but whose only sister has built her life and family just

south of the border I do not want to see barriers array -- erected

between us. That is what Alex Salmond does not understand. When he

is genuinely puzzled that the polls haven't moved. He thinks that if he

waved the flag and offers the error that causes his ears then people

will flock to his banner. But he has not realised that this land is our

land, this union is urging in and everyone of us have your own

personal reasons for wanting it to stay. Her limited kingdom belongs to

all of us, we have built it together, traded together, fought

together, lips together, locked together, several together, build

our lives together. This land is our right and we will allow no one to

break apart. Conference, we have six months, we

have six months to tell the truth, six months to fight because, six

months to persuade our friends and family to keep our country together.

The fight starts now, today, so I wanted to go from this place and

tell the world that you are proud of being Scottish but proud of

Britain, too. And that our United Kingdom, the nation we have built

through blood and toil and sweat will not be broken, tell the world

that we are stronger together, we are safer together, we are Better

Together and we can, we must, we will stay together. Thank you.

A standing ovation for the Scottish Conservative leader Ruth Davidson

there from the conference, focusing on the referendum of course. It is a

site we can win in the fight we are going to win. Policy announcement on

health and education and speaking of constitutional change, the living a

settlement that the people of Scotland want. Let's go to our

political editor, Brian Taylor. You were listening to that, much as we

expected? Something of an intriguing tone at the end, blood, sweat and

toil, blood and toil and sweat. Of course absolutely conscience echo of

Churchill and earlier when she said I want you, and echo of Kitchener, a

World War I recruiting advert. Deliberately reaching back to icons

of Britishness with which this audience, the bodies in the hall

would be extremely familiar. She was linking them therefore to what I am

sure they would say was a British study in the study of these isles.

Keeping the union together, she said I want to change but you don't need

a separate country. Speaking about delivering a settlement that the

people of Scotland want. There was possibly an echo of George Robertson

when she said that it would kill independence stone dead, those who

have long memories will remember the interview I did with George, now

Lord Robertson when he said that evolution would kill nationalism

stone dead but she was sitting at the choreography, the Strathclyde

commission followed by an fermentation by a Conservative

government. The settlement that she said would remove the option of

independence from the picture because it would be one that would

be popular with the Scottish people. That is plainly the offer she will

make although not yet because the suck the commission will not report

until May and we will not get the Conservative offer until after that.

My guess is that Ruth Davidson is confident in the direction it will

go, more tax powers for the ScottishPower. Why are they saw in

favour of further tax powers? It is tactical. But also in terms of the

longer term thinking of the way the Conservatives approach these things

they have gone down and down and down in popularity in Scotland as

they seem to be out of step with Scottish thinking, there seems to be

something other than the Scottish party. The sepia way

something other than the Scottish reaching to those who are they

describe as aspirational and hard-working soul you create a large

tax palate powers within the Scottish Parliament and from that

Ruth Davidson seeing the Tories would argue for cutting taxation in

Scotland. Cutting personal taxation in Scotland. Not the corporation tax

that Alex Salmond is offering. Professor John Curtice is still with

us in the studio. This is expanding the appeal of the Conservatives.

The interesting thing is that the first two thirds of speech was not

about the referendum. It was about what you was trying to lay out her

vision of the Conservative Party. It was a vision that cuts across what

many people regard to be the dominant vision of Scotland. She was

saying she believes in choice in public services, lower taxation,

welfare reform. There was something rather funny about that because of

that was her dominant message, why was frankly one and only policy

promise made in this speech actually a promise to reintroduce a tax, the

prescription tax, in order to increase public spending in Scotland

and spend more on the NHS? I think it's what she was wanting to do was

say, here are a different set of values and we know how to do that,

that the policy the speech contains would be the one that went with the

grain of that message rather than one that seems to cut across it. In

that sense it was rather curious. The main message was not backed by

any iconic example that rest of Scotland might understand she was

coming from. In terms of paying for prescriptions

again, that individual responsibility then flows to the

educational announcement. What he has said before is that parents must

have more choice when it comes to schools.

Yes, she will argue that people need to be more responsible for

themselves and the state should to be more responsible for

be paying for things individuals can afford. Unfortunately for her, the

prescription charge, if you go to a chemist in England is called a

prescription tax. You wouldn't have a single charge for all medicines

irrespective of what it cost, you'd be invited to pay some contribution

to the medicine. She wants to go down the road of personal

responsibility, it is not clear that a flat rate tax on prescriptions is

the right way to do that. How do you view this speech on the

whole as to how it was received? I think it wasn't a speech that had

very much in the way of applause lines. Only when she was defending

the union. The reaction when she mentioned the Strathclyde commission

was polite applause rather than a great deal of enthusiasm. Given the

broader message of her speech which was wanting low taxes and a smaller

states, I thought she would go on to say that the reason why she wants

more tax-raising responsibilities is so that in 2016I can go to the

Scottish public and say we want to reduce income tax. She has said that

previously and it is surprising she didn't say that again. She could

then very clearly creates clear water between herself and the Labour

Party, who remarked as it will also be coming out in favour of

tax-raising powers but will probably use them to raise tax.

On the taxation, she was really backing the Chancellor's plans

coming up in the budget. Of course, she was saying that we

are a government that is delivering for Britain and cutting taxation and

seeing that this is what the Tories are doing. But there isn't much

evidence that the Tories are benefiting from

news. A real stalwart, a veteran of the

Thatcher and Cameron cabinets, Ken Clarke spoke to us this morning.

Thank you for joining us. On the matter of Crimea, do you regard that

as credible? It is the worst came of referendum,

trying to get round Parliamentary control. They haven't even got an

electoral register. It is intended to validate a military takeover and

it is a very crude crisis. It is important that the West sticks

together, as we are, the US and the EU including the United Kingdom, and

we do impose penalties for such a stringent reach of international law

and obligations. The danger if we don't respond properly and Putin

doesn't suffer, then he will look powerful and the rest will look

weak. That will repeat itself in other future problems we might have.

But just in Moldova or the Balkans but even in the Middle East. The

West has to repudiate and react to this outrageous series of events.

But we are talking trade sanctions and economic sanctions rather

military intervention. Nobody is going to go to war. The

idea that we would go to war is unthinkable for the people of

Europe. But there must be real, not just symbolic, economic and trade

penalties for such an outrageous violation of all international

standards purely for Russian reasons.

Back to the economy, a debate within the Conservative Party as to whether

it is better to increase the threshold at which people play the

lowest income tax or raise the 40p rate.

You only ceased to benefit from the personal benefit when you are above

?100,000 salary. To take these low earning people out of taxation,

particularly at a time when lots of people are having to struggle on

comparatively low pay, that is the priority. Every Chancellor is faced

with great lists of other things he might do which are attractive in one

way or another, but this Chancellor cannot do so because of the folly of

his predecessors. I don't know what George is going to do but if he is

able to raise tax allowance, I would go for a reason in the personal tax

allowance. Norman Lamont and Nigel Lawson both

recommended taking more people out of 40p rate, that that should be the

priority. That is marginal, that is 40p on the

last bit of their salary. That is undesirable. The fact is, after a

financial crisis like the one we have seen you cannot afford things.

If we go back to economic normality and create a balanced and

competitive economy, George has to make a choice and I personally would

go for raising the personal allowance. People have started to

pay tax on ridiculously low levels of income.

Some Tories are saying that raising the lowest threshold is favouring a

Liberal Democrat policy and favouring people who are not

necessarily Tory voters, let's be blunt about it.

Raw politics isn't the only thing that should determine a budget. I

wasn't particularly political when I was Chancellor, the first thing you

have to do is get the economy to perform well. The next thing you

have to do is to be fair. You are not just looking at the headlines

you will get the day after you deliver the budget,

you will get the day after you people will look on reflection and

see that things are getting better. If I was Chancellor, I would go for

raising the threshold. If your party isn't debating tax, it is agonising

over the European Union. You think there can be a credible

offer from the European leaders in terms of reforming the European

Union? I will always be in favour of

worthwhile reforms of the European Union. Particularly the economic

reforms. The EU trade agreements with United, Japan and China, we've

just got one with China, we don't use the clout that we have from

being in the European Union when the European Union uses its clout

entering into