20/09/2011 Today at Conference

Evenin' all. Welcome to another round-up from the Liberal Democrat

Conference here in Birmingham where the economic backdrop just keeps on

getting grimmer. Yesterday, Vince Cable feared we could be in for a

prolonged period of stagnation. Today, the IMF said the global

economy had entered a "dangerous new phase" and downgraded its

growth forecasts for America and Europe, including Britain. For all

the talking here the blunt truth is nobody quite knows what to do about

any of this. But Energy Secretary Chris Huhne created a clever

diversion by taking a pop at the energy companies for putting up our

fuel bills. Here are the highlights. World gas - and hence electricity -

prices have leapt by a third thanks to Libya and far eastern growth.

Global factors. So we should surely try to limit our dependence on oil

and gas, not increase it. Particularly as our own North Sea

resources are running down. In the storm-tossed seas we have to sail,

low carbon energy gives us security. Assurance. Safety. British energy

consumers will on average be better off in 2020 thanks to our low

carbon policies. Yes, I said better off. Getting off the oil and gas

price hook and onto clean, green energy makes sense. And with energy

saving, we can offset the effects of higher prices and end up with

lower bills. In one generation, we will go from fossil fuel smokestack

to low carbon cash back. Today I can announce a new package to help

the hard-pressed consumer this winter and every winter. We are

determined to get tough with the big six energy companies to ensure

that the consumer gets the best possible deal. We want simpler

tariffs. Requiring energy companies to tell you whether you could buy

more cheaply on another tariff. And you can save real money. Ofgem, the

independent regulator, calculates that the average household could

save �200 by switching to the lowest cost supplier - but fewer

than one in seven households do so. So I want to help households save

money. With simpler charging. Clearer bills. Quicker switching.

The European Union is also key to our prosperity. The Eurozone takes

nearly half our exports. We export more to Ireland alone than to China,

India and Brazil put together. Being part of Europe is not a

political choice. It is a geographical reality. It always was.

And until the tectonic plates break up, it always will be. We will not,

as Liberal Democrats in Government, weaken the ties that deliver our

national interest through Europe. This Coalition Government saved

Britain's credit standing by compromise. The danger if you don't

compromise is now clear from America. There the markets looked

over the brink when the mad-cap Republican right in Congress would

not compromise with the President. Let that be a warning to the

Conservative right here: we need no Tea Party Tendency in Britain. If

you insist that only you have the answers, if you keep beating the

anti-European drum, if you slaver over tax cuts for the rich, then

you will put in peril the most crucial achievement of this

Government. You will wreck the nation's economy and common purpose.

We are all in this together and we can't get out of it alone.

Chris Huhne ending his speech there with a dig at so-called "Tea Party

Tories". But then it wasn't so long ago he was comparing them to

Goebbels so I guess being compared to Sarah Palin is an improvement.

The Lib Dems have cheered themselves up throughout this

conference by bashing the Tories - it comes naturally to them. Most

folk here are firmly on the Left. We sent Adam Fleming out to

establish that beyond peradventure with his infamous mood box. Come

and have a look at what is back - the mood box. For the first quiz of

2011, we are asking people to look forward to the next general

election. We will ask delegates who they would like to go into

coalition with. They will use these balls to vote. We have 33 different

policies. If that trend continues, and we see an improvement in the

economy, I would have to stay with the Tories. Our first Labour voter.

Why is that? We don't have a lot of deals with the Tories. My views are

more left-hand than right-wing Tory views. It is a dilemma. We seem to

be working with the Tories but I don't like their policies. Labour.

No question there. Why the Tories? The Tories we have learnt to work

with. This is the first Parliament. Once you have worked to learn with

a partner, you shouldn't rush to ditch them. My heart would like to

go Labour, but I think it would have to be Tory, I think. With a

heavy heart? Yes. Labour. Cancelled each other out. I'm not putting my

ball in either of those. I think it is a false question. OK? You are

going to put it back into the basket? It depends on manifestos.

Why Labour? Because I don't think the Tories should exist at all.

are Labour. Ooh. You would rather ditch them? I would ditch them

tomorrow, if I could. We will be seeing more of you today? Yeah,

later on. Have you been enjoying it? It has been interesting.

have had quite a lot of people voting. It looks like Labour are

edging it. People are not that keen on answering this question. You

grab a ball and pop it in the slot. It is 2015, there is another hung

Parliament... No way! Who would be your preferred coalition partner.

Perfect! He is in the middle. It is rolling towards the Tories. It is a

tough dilemma? It is. I'm not going to do it. Ah! A beast of a question.

I'm a two-ball person! They say Tessa Munt's got balls - she has!

Is it a bit of a dilemma? No, there are good things in all of the

parties. Every party has something to offer. When you look at the

final result of the balls, the balls do not lie. What do you think

that says about the state of your party today? A Liberal Democrat's

heart beats on the left. We all know that. We are radical

progressives. Whether we come from a Social Democratic background or a

Social Liberal background, most of us are not Conservatives. The balls

never lie. Here is the final result. A majority of Lib Dem delegates

would prefer to go into coalition with Labour in 2015 in the event of

a hung Parliament. Interesting how Vince Cable's ball

tilted towards the Conservatives there - not sure that's what he

intended. Someone who speaks favourably about the Coalition only

when he's holding his nose and crossing his fingers is the Lib

Dems' left-wing president, Tim Farron. He's said divorcing the

Tories is inevitable and seems to be looking forward to it. I asked

him why. The partners will go their separate ways... So it is not a

divorce. All coalitions work like that. Absolutely. You don't rule

out coming back? Who knows. principle, you don't rule it out?

No. Why would you Sadie vors is inevitable and this is a temporary

marriage -- why would you say divorce is inevitable and this is a

temporary marriage? You have to be big enough to look at the

arithmetic... If the next election produces a result with a party with

no overall majority, are you ruling out you wouldn't renew the

coalition? Of course not. We are in this business together. Liberal

Democrats and Conservatives. It is a temporary arrangement whatever

happens. When the next general... Five years isn't temporary. It is

important it is a full five years. One thing that is important, if you

look into your crystal ball... haven't got one! The one thing I am

certain is that we need a stable Government. I understand that. The

fact is, when you said divorce is inevitable, you were playing to the

Lib Dem gallery? This is not a merger, this is not... You are

setting up Aunt Sally's that don't exist! Both your parties deny there

will be a election where you will have an election pact? People like

our good friend Polly Toynbee who will write week after week about

how the Lib Dems change their policy, that was a crude way of

putting it. Last time I looked, Polly Toynbee wrote for the

Guardian, you are a self-styled Guardian reader? I am. In your

heart of hearts, if you have a choice, you would much rather have

to share power with Labour rather than the Conservatives? No, we are

an independent party. You can't really call the Liberal Democrats...

I'm saying there is a self-styled Guardian reader, a man on the left,

you are on the left, you would rather all things being equal share

power, be in coalition with Labour? I would rather win the general

election and we didn't. That is not going to happen? The British people

said sort it out. Chances are... don't understand... Am I not being

honest? I know the reasons why we have to be in power with the Tories

at the moment. I'm not very happy about it. I understand it. But all

things being equal, I would rather share power with Labour if I had to

share power with anybody. Correct? No. The bottom line is, you look at

the circumstances you are given. I'm sure that we did the right

thing going into coalition and the only option was to go in with the

Conservative Party. Vince Cable has said that we could be heading for a

prolonged period of stagnation. If you hit - what are the political

consequences of that? If you hit 2015 and we are still in stagnation,

electorally you are toast? I mean, we all know that this is a really

unbelievably difficult period. You remember Mervyn King said that

whoever took power in 2010 will be out of power subsequently for a

generation afterwards. So you will be out of power? So one is a good

deal. The point I am making is, whoever is in power will have to

take horrific decisions. The exit from this awful period, I can't

predict when it is going to be. I believe it will be in advance of

2015. Political consequences for the Liberal Democrats could be very

large. The consequences of us not being mature and entering a

coalition, despite the fact we have our disagreements, would be much

greater. Just look me in the eye and be honest with me, all this

Tory bashing, divorce is inevitable, and... You are reading. You are

positions yourself to pick up the leadership if the coalition goes

pear-shaped? No. I have no such ambition. If offered, will not

accept? Certainly not. You will refuse the leadership? It is not

going to come up. Nick Clegg is doing a brilliant job. If you were

offered, you would refuse? Yes. would? Yes. Nick Clegg is a mate

Tim Farron. This afternoon Nick Clegg and their

Health Minister Paul Burstow visited a hospital in Birmingham.

Earlier in the day, Mr Burstow took a Q&A on health matters. The Lib

Dems are claiming credit for major changes to the health reforms going

through Parliament. There was a bit of a grassroots rebellion earlier

this year. The rebellion was led by Shirley Williams. Even though she

got some of her way, Shirl the Girl and others made it clear today that

they are still unhappy with the reforms. Here are the highlights.

Andrew Lansley admitted that most of the changes do not require this

massive piece of legislation and why we have got 440 pages of

totally obscure legislation is a mystery. Paul has dug his way

through it, he is like a polar explorer and he has managed to find

his way to the South Pole, but most of the rest of us are not capable

of doing that because we do not have the detailed knowledge to go

through it all. It is a very obscure, very complicated and

difficult Bill. To me, there are still two issues which stick out.

One is we must get rid of the simple autonomy clause which says

that the Secretary of State may not affect the economy of the bodies

which have the responsibility, monitor and the commissioning Board.

And secondly, the secondary -- Secretary of State retains the

residual responsibility. The residual responsibility for

securing the provision of a comprehensive health service to all

the people of this country. I think if we can get those two as well, we

can live reasonably comfortably with the proposals that are before

us. I agree absolutely with what Shirley has said. Fundamentally, we

need to make sure the Secretary of State maintains a legal and a

political accountability for securing an health service in this

country. That is why we are taking this legislation through Parliament.

The Secretary of State will have to set out what he means by this. He

will have to consult on it and presented to Parliament. This has

never happened before. It has happened because Liberal Democrats

are campaigning for it. The Bill has become a proxy for concerns in

the NHS, it has been substantially improved thanks to Paul and the

Liberal Democrats. It largely reflect the Blairite inheritance of

the NHS. But all being said, I have not relate on the view ahead in

Liverpool, that this is a huge strategic mistake for the

government, the Liberal Democrats and the Conservative as well. There

are two reasons for that. One is the scale for the reorganisation

and secondly, the risks of reorganisation, some of which were

bequeathed to us by the previous Labour government. The situation is

similar to the sickening feeling you sometimes have when you on a

motorway and you realise you have taken a wrong turning and you

realise it will be some time before you get on the right track again.

We have repeated the mistake the previous governments have made an

not built on what was good about the past.

The Lib Dems are the most pro- European of parties so we have all

had some fun at their expense, quoting back to them their previous

enthusiasm for joining in the euro. In an effort to cauterise this

embarrassment, Nick Clegg said today that in retrospect, it would

have been a huge, huge error to have joined the euro. I asked

former leader Ming Campbell if he agreed. I don't think I put it in

those terms that I think he is articulating what many people now

feel that as far as Britain is concerned, the single currency is

of the political agenda and is likely to be so for some

considerable time. You told your party in September 2002 that it

would be a historic error if Britain did not join the euro. Do

you still stand by that? When the fact change, I changed my opinion.

So you were wrong? In those circumstances. It appeared to be

the proper thing to do. For Britain to stay out has resulted in us

exercising less influence in Europe but as recent events have proved,

still being subject to a lot of difficulties as a result of the

failures in the eurozone. We stood out but it has not stop us being

affected. You once accused the Labour government of timidity over

joining the single currency. You published a pamphlet still

available at Waterstone's for �4.99 why the euro is the best future for

Britain. I guess that will not make the best sellers any more?

delighted it is �4.99. Someone bought a copy of my biography the

other day for one penny on eBay. Remember what I was saying. I was

saying that Gordon Brown's approach, which you will recall, she set out

five conditions, every one of which, he was able to say it has been

fulfilled or not fulfilled. He was sent highly equivocal about it in

circumstances which we now know from his memoirs, where he was in

direct jobs at Tony Blair. Your party was furious at the time. He

wanted him to get the British economy into shape quickly to meet

the five conditions. We were the first part it promised there should

be a referendum on whether Britain should join the single currency.

Last year, we brought you the political equivalent of Wife Swap.

Take one Lib Dem MP and one Tory MP, make them spend some quality time

in each other's conference. 12 months on, the coalition is still

intact but this conference has given every impression there is a

pretty loveless marriage. We brought Tory MP Peter Bone to

Birmingham to see if he could put I am sometimes mistaken for a

former England football team manager. One thing you will never

mistake me for his Liberal Democrat. They may be in government but they

are certainly not playing for the team. Last week was my wedding

anniversary and I forgot. Mrs Bone is a forceful lady and I am in the

doghouse. What more can I give her than her Liberal Democrat best so I

am going to buy this. -- Liberal Here we are. The Liberal Democrat

stand on Europe, no views and note position whatsoever. Completely in

line with the leadership. Legislation must start soon and it

will be completed within this party. I heard nothing that would help

Britain get going so, as far as I am concerned, as far as Vince Cable,

I'm sure everybody here heard Vince setting it straight in the hall

here and wish the whole world was taking notice.

Well, I have just listened to the priorities for the Liberal Party

for the government, legalising cannabis, women's shortlists and

closer ties with Europe. It did off the scale, of the planet. I had no

idea that they were so completely out of touch with reality. The

Liberal Party as a whole must have a yellow card.

Is it worth being in government? Absolutely. That is what we are

doing. We are punching way above our weight. We had a compromise

which should be called a graduate tax and we get the blame because we

were the ones who said we wouldn't and the others were going to do it

anyway so I do feel bad about that. There were lots of issues that we

have put forward and those are the issues that we would not have been

able to have any impact on if we were not in government. That is it

for today. Delegates going off. I have been struck by how many of

them want to stay in government. They would rather be in government

funds to cut for their policies. That seemed very strange to me.

Many of them are happy with what the Conservatives are doing. I

should have brought along some Conservative membership forms,

signed them up and then they could really be part of the government,

not just in coalition. Once Peter Bone ditched his sports

kit, he joined us for some more counselling. Also there was Don

Foster. He will be joining us that the Conservative conference in

Manchester. I asked Mr Bone if he had encountered any hostility.

said in a film, I was amazed by how many people wanted to be in

government. They like -- if they like what the Conservatives are

doing, why don't they become Conservatives? There is nobody here

with beards and sandals complaining. I was very surprised. What do you

say to that? This is not the same Peter Bone who was on Newsnight

last night who said you have tainted the Tory brand, you are

pulling above your weight, your better much of your own way. They

gave you a teddy bear and you changed your tune? I had to pay for

it. Absolutely, I think the Liberals are punching above their

weight. They are making the policy this worse. I am all for the

divorce that Tim Farron was talking about. There is a slight snag in

fact that before you can end the coalition, you have to win an

overall majority which is what your party spectacularly failed to do

last year? You have to say it it was a pretty impressive result.

Really? Coming from behind to be effective in government but you are

right we should have done much better. Once the economic crisis is

solved, let's get on, become independent parties again, argue

the case and have general elections. You will become independent parties,

no one will argue with that but do you agree with your President Tim

Farron that divorce is inevitable? Once we get to the end of the five-

year period of the election, we will go our separate ways - a

separate ways. You could get married again? We could do. As ten

more saying, you look at the circumstances, what the

opportunities are, to get the maximum Liberal Democrat policies

through so that is what we will do following the outcome of the

election of no party is in overall control. Has the government

benefited in any way by having the Lib Dems in coalition? 1 point is

we are working together to solve the economic crisis and that is

what the coalition is about. I am very happy about that. I think they

were very brave to cumin and both parties have taken difficult

decisions and we are suffering for it, both of us in the polls. Once

that is done, what is the point of having a false marriage when there

is no need for that? What is the point? The point with the country

needs economic stability at the current time. One of the great

things but having the coalition is it has given us that stability and

kept interest rates down. We are not spending on paying off the

better of this country and paying interest on the debt, anything like

other countries are having to do, that is because we have got the

stability. On that reasonably harmonious night

we will leave there for the match. Tomorrow, Nick Clegg delivers his

annual speech to the party faithful stop from what we hear, there is

nothing very new or dramatic in it. He has very little room for

manoeuvre and not much to hope for accept that things can only get

better. There is hope -- there is talk in Birmingham about the new 5

million stimulus package coming down the pipeline. Whether it will

arrive in time for Mr Clegg's speech is another matter. Joe will

join me in Birmingham for the Daily Politics live on BBC2. We will have

all the build up for the Clegg at speech. Then we will be back on air