:00:24. > :00:29.Evening all. Welcome to our final conference round-up with the Lib
:00:29. > :00:33.Dems here in Birmingham where an unrepentant Nick Clegg told his
:00:33. > :00:38.party that it had been in the national interest to join with the
:00:39. > :00:42.Tories in forming a coalition, that there was no alternative to budget
:00:42. > :00:47.deficit reduction, that Labour couldn't be trusted on the economy
:00:47. > :00:51.and that if the Tories thought they could get out of the European Human
:00:51. > :00:59.Rights Act, they better think again. Here are the highlights. This party,
:00:59. > :01:07.the Liberal Democrats, we have now been in Government for 500 days.
:01:07. > :01:13.Not easy, is it? None of us thought it would be a walk in the park. But
:01:13. > :01:21.I suspect none of us predicted just how tough it would turn out to be.
:01:21. > :01:24.We have lost support. We have lost seats. We lost a referendum. We
:01:24. > :01:28.proved something about ourselves last year when we faced a historic
:01:28. > :01:34.choice, whether or not to enter Government in coalition with the
:01:34. > :01:37.Conservatives. Now the easy thing would have been to sit on the
:01:37. > :01:43.opposition benches, throwing rocks at the Government as it tried to
:01:43. > :01:50.get control of the public finances. It might even in the short run have
:01:50. > :01:55.been more popular. But it wouldn't have been right. At that moment
:01:55. > :02:00.Britain needed a strong Government. Burying your "head in the sand",
:02:00. > :02:07.that is not liberal. Saddling our children with the nation's debt,
:02:07. > :02:14.that's not fair. Labour says the Government is going too far too
:02:14. > :02:24.fast. I say Labour would have offered too little too late.
:02:24. > :02:28.
:02:28. > :02:33.APPLAUSE Imagine, for a moment, if Ed Miliband and Ed Balls had still
:02:34. > :02:38.been in power, Gordon Brown's backroom boys, when Labour was
:02:38. > :02:43.failing to balance the books, failing to regulate the financial
:02:43. > :02:49.markets and failing to take on the banks. The two Eds, behind-the-
:02:49. > :02:55.scenes lurking in the shadows, always plotting, always scheming,
:02:55. > :03:02.never taking responsibility. At this time of crisis, what Britain
:03:02. > :03:12.needs is real leadership. This is no time for the backroom boys.
:03:12. > :03:19.
:03:19. > :03:25.APPLAUSE Labour's economy was based on bad debt and false hope. Labour
:03:25. > :03:31.got us into this mess. They are clueless about how to get us out.
:03:31. > :03:36.Another term of Labour would have been a disaster for our economy. So
:03:36. > :03:43.don't for a moment let Labour get away with it, don't forget the
:03:43. > :03:52.chaos, the fear of 2008 and never ever trust Labour again with the
:03:52. > :03:57.economy. APPLAUSE Government has also brought
:03:57. > :04:05.difficult decisions. Of course, the most heart-wrenching for me, for
:04:05. > :04:12.all of us, was on university funding. Like all of you, I saw the
:04:13. > :04:18.anger, I understand it. I felt it. I have learnt from it. I know how
:04:18. > :04:24.much damage this has done to us as a party. By far, the most painful
:04:24. > :04:29.part of our transition, from the easy promises of opposition to the
:04:29. > :04:36.invidious choices of Government, the simple truth is that the
:04:36. > :04:41.Conservatives and Labour were both set on increasing fees. In those
:04:41. > :04:47.circumstances, we did the best thing we could. Working tirelessly
:04:47. > :04:53.to ensure anyone who wants to go to university can. Freeing part-time
:04:53. > :04:59.students from upfront fees for the first time, ensuring fairer
:04:59. > :05:06.repayments for all graduates. But we failed to properly explain those
:05:06. > :05:12.dilemmas. Right now, of course, our biggest concern is the economy. The
:05:12. > :05:17.recovery is fragile, every worker, every family knows that. There is a
:05:17. > :05:20.long hard road ahead. Just in the last few days alone, we have seen a
:05:20. > :05:27.financial storm in the eurozone, rising unemployment, falling stock
:05:27. > :05:35.markets. So we were right to pull the economy back from the brink.
:05:35. > :05:44.Because, as Liberal Democrats, we act for the whole nation. In our
:05:44. > :05:50.long, proud, liberal history, we have never, never served the media
:05:50. > :06:00.moguls, the union barons, or the bankers. We do not serve and we
:06:00. > :06:04.
:06:04. > :06:11.will never serve vested interests. Of all the claims Ed Miliband has
:06:11. > :06:16.made, the most risible is that his party is the enemy of vested
:06:16. > :06:19.interest. I mean, give me a break. LAUGHTER While we were campaigning,
:06:19. > :06:24.for change in the banking system, they were on their prawn cocktail
:06:24. > :06:34.offensive in the City. While we have led the charge against the
:06:34. > :06:44.media barons, Labour has cowered before them for decades. We should
:06:44. > :06:47.
:06:47. > :06:51.fix it fast. APPLAUSE In a coalition, we have two kinds of
:06:51. > :06:55.power - the power to hold our coalition partners back and the
:06:55. > :07:00.power to move the Government forwards. So we can keep the
:07:00. > :07:05.Government to a liberal path, anchor the Government in the centre
:07:05. > :07:10.ground. We were absolutely right to stop the NHS Bill in its tracks, to
:07:10. > :07:15.ensure change on our terms, no arbitrary deadlines, no back door
:07:15. > :07:22.privatisation, no threat to the basic principles at the heart of
:07:22. > :07:25.our NHS. We are right to stand up for civil liberties, no retreat to
:07:25. > :07:29.the liberal populism of the Labour years. We are right to keep
:07:29. > :07:38.insisting on a fair tax system, asking the most of the people who
:07:38. > :07:48.have the most. And we will always defend human rights at home as well
:07:48. > :07:49.
:07:49. > :07:54.as abroad. APPLAUSE The European Convention on Human Rights and the
:07:54. > :07:58.Human Rights Act are not, as some would have you believe, foreign
:07:58. > :08:02.impositions. These are British rights, drafted by British lawyers,
:08:02. > :08:08.forged in the aftermath of the atrocities of the Second World War,
:08:08. > :08:14.fought for by Winston Churchill, so let me say something, really clear,
:08:14. > :08:24.about the Human Rights Act. In fact, I will do it in words of one sill
:08:24. > :08:31.
:08:31. > :08:37.billion. It is -- sylaable. It is Now, this summer, this summer, we
:08:37. > :08:43.saw the consequences of a society in which some people feel they have
:08:43. > :08:49.no stake at all. Nobody could be failed to be horrified by what we
:08:49. > :08:55.saw during the riots. These weren't organised campaigns for change.
:08:55. > :08:59.They were outbursts of greed. I will never forget the woman I met
:08:59. > :09:04.in Tottenham who told me the clothes she stood in were the only
:09:04. > :09:11.possessions she had left in the whole world after her home was
:09:11. > :09:21.torched. The rioters are not the face of Britain's young people.
:09:21. > :09:23.
:09:23. > :09:28.APPLAUSE The vast majority of our young people are good, decent and
:09:28. > :09:38.doing the best they can. Don't condemn all of them because of the
:09:38. > :09:43.
:09:43. > :09:48.actions of a few. APPLAUSE Do you know what really struck me? It was
:09:48. > :09:52.how so many of those who did join the riots seemed to have nothing to
:09:52. > :09:58.lose. It was about what they could get here and now, not what lies in
:09:58. > :10:03.front of them, tomorrow, and in the years ahead, as if their own future
:10:03. > :10:09.had little value. Too many of these young people had simply fallen
:10:09. > :10:13.through the cracks. So, today, I am launching a new scheme to help the
:10:13. > :10:17.children who need it most in the summer before they start secondary
:10:17. > :10:22.school. A two-week summer school helping them to catch up in maths
:10:22. > :10:28.and English and getting them ready for the challenges ahead. Because
:10:28. > :10:34.we know this is a time when too many children lose their way. So
:10:34. > :10:44.this is a �50 million investment to help them along the right path.
:10:44. > :10:47.
:10:47. > :10:54.APPLAUSE So hold your heads up. Look our critics squarely in the
:10:54. > :10:59.eye. This country would be in deep trouble today if we hadn't gone
:10:59. > :11:06.into Government last year. And Britain will be a fairer nation
:11:06. > :11:11.tomorrow because we are in Government today. Never apologise
:11:12. > :11:20.for the difficult things we are having to do. We are serving a
:11:20. > :11:26.great country at a time of great need. There are no short cuts, but
:11:26. > :11:36.we won't flinch. Our values are strong, our instincts are good.
:11:36. > :11:40.
:11:40. > :11:47.Reason, not prejudice, compassion, not greed, hope, not fear. APPLAUSE
:11:47. > :11:53.Britain is our home. We will make it safe and strong. These are our
:11:53. > :12:03.children. We will tear down every barrier they face and this is our
:12:03. > :12:09.
:12:09. > :12:12.future. We start building it today. Nick Clegg. There was no mention of
:12:12. > :12:16.any further economic stimulus in his speech, something Vince Cable
:12:16. > :12:20.seems to have been pushing for. So as the applause for his leader died
:12:20. > :12:24.down, I asked the Business Secretary if he had lost the
:12:24. > :12:28.stimulus argument. Absolutely not. I spoke on Monday about the need
:12:28. > :12:31.for stability and financial stability and sticking with our
:12:31. > :12:36.deficit reduction commitments, but also for stimulating growth. This
:12:36. > :12:39.is partly about some of the longer term measures we are doing to
:12:39. > :12:42.attract inward investment, apprenticeship training and
:12:42. > :12:47.technology and also some of the things that can happen, monetary
:12:47. > :12:54.policy is one way. The kind of modest support for infrastructure
:12:54. > :12:58.that Danny Alexander... You called for a new deal-style stimulus?
:12:58. > :13:03.set out a whole series of measures about how the Government could
:13:03. > :13:10.encourage growth without undermining or sacrificing...
:13:10. > :13:13.deal-style - a new deal-style stimulus means a substantial new
:13:13. > :13:18.deal, huge increase in Government investment. You are not going to
:13:18. > :13:23.get that? I didn't use the phrase "new deal". Somebody else used it.
:13:23. > :13:27.I was very careful... It was not very... I was careful in what I
:13:27. > :13:32.argued. We need to have as much commitment as we can to investment
:13:32. > :13:36.in the economy, Government money can leverage in a substantial
:13:36. > :13:41.amount of private capital, the sort of thing we are doing with the
:13:42. > :13:47.green investment bank. We must not compromise our public expenditure
:13:47. > :13:51.commitments. Do you accept there cannot be a substantial amount of
:13:51. > :13:55.new capital investment without breaching your budget targets and
:13:55. > :13:58.spending limits? We are dealing with - we have a series... Do you
:13:58. > :14:02.accept that? We are having to stick to those commitments. We are
:14:02. > :14:06.dealing with a moving target. As far as capital expenditure is
:14:06. > :14:09.concerned, the Government has increased it. It was savaged under
:14:09. > :14:14.the outgoing Government. We have increased it. I plays an important
:14:14. > :14:24.role in priming private sector investment. Danny Alexander has put
:14:24. > :14:25.
:14:25. > :14:31.an additional commitment to that Your leader went on about social
:14:31. > :14:36.mobility including cleaning up inturnships. That's a way privilege
:14:36. > :14:43.people can get a leg up. They are often not paid they depend on
:14:43. > :14:48.contact. From your website I have a list of job for interns terns all
:14:48. > :14:54.of which are offering unpaid internships. Why don't you clean up
:14:54. > :14:59.your own house first? Unpaid internships can be valuable work
:14:59. > :15:03.experience. They can have the negative results you described. I
:15:04. > :15:07.and many other other people in public life have given - We know
:15:07. > :15:11.they are valuable. If you are a bright boy or girl from Birmingham,
:15:11. > :15:16.just coming out of university, from an ordinary working-class family,
:15:16. > :15:23.how could you afford to take an internship for the Liberal
:15:23. > :15:28.Democrats when it is unpaid? We - we are not going to scrap
:15:28. > :15:33.internships simply because - the major problems of social mobility
:15:33. > :15:39.have to be overcome in a variety of ways, helping people get through
:15:39. > :15:47.university. Internships are a valuable form of training. Keeping
:15:47. > :15:51.them will form a useful service itself. You said you would do
:15:51. > :15:56.something dramatic to kerb executive pay. You ended up only
:15:56. > :16:00.consulting. We started. Since you control the pay of the Royal Bank
:16:00. > :16:07.of Scotland, why don't you do something about their pay? Well, we
:16:07. > :16:11.talk about Mr Hestor. All of them? He has a long-term contract. The
:16:11. > :16:14.Government don't want to be in a position of directly managing every
:16:14. > :16:17.executive decision within the banks that are partly state opened owned.
:16:17. > :16:21.That is right. Even though you think bankers are paid too much,
:16:21. > :16:26.you can do nothing about the banks that you own? Well, we can do. One
:16:26. > :16:30.of the - Why don't you? One of the elements of the agreement was
:16:30. > :16:35.getting acceptance from the banks, including the state-owned banks
:16:35. > :16:39.they would exercise moderation in their pay. In your view, have they?
:16:39. > :16:44.They are still getting millions of pounds? Indeed. That is clearly an
:16:44. > :16:47.issue we have to work on. Lib Dem leaders have been adamant economic
:16:47. > :16:53.policy is set in stone. That the budget deficit has to be cut. That
:16:53. > :16:57.is an end to it. What do ordinary Lib Dem members make of their
:16:57. > :17:01.leader's unstinting support for Plan A. We sent Adam Fleming to
:17:01. > :17:06.find out. This conference is taking place against a back drop of grim
:17:06. > :17:11.news about the economy. The most recent piece being the IMF
:17:11. > :17:16.downgrading its forecast for Britain's growth next year. Do Lib
:17:16. > :17:20.Dem delegates think they should stick to Plan A or is it time for
:17:20. > :17:27.Plan B? It's difficult with. This we don't know whether the plan is
:17:27. > :17:34.working or not lch is no Plan B. would like to put it in Plan B I
:17:34. > :17:40.can't see a credible coherent alternative. I have to go Plan A,
:17:40. > :17:42.against my best wishes. You have gone for Plan A, why is that?
:17:42. > :17:48.difficult. It's slowly moving in the right direction. I think we
:17:48. > :17:55.have to stick with it. If we change direction it will undermine the
:17:55. > :18:04.markets. Time for "plan B". Why do you say that? Plan A is affecting
:18:04. > :18:11.the low paid, the under privileged only. We now need to speed up the
:18:11. > :18:14.tackling of the rich. One thing you can say about the conversation, it
:18:14. > :18:19.does hurt. Sometimes the cuts aren't fair they do sort the
:18:19. > :18:24.economy out to an extent. It's a crude way of judging the economic
:18:24. > :18:29.policy. OK? I wouldn't take part of that because I'm a Plan A plus
:18:29. > :18:35.person. Your menu choice - I'm not trying to be difficult. OK. If you
:18:35. > :18:41.were Michael Cibg I would give the same answer. Your menu choice needs
:18:41. > :18:47.to be expanded, it's never that simple. As long as you you choose
:18:47. > :18:53.the sample correctly this is the method, but with a flasher box, the
:18:53. > :19:01.one we used to predict the general election. Nothing about the
:19:01. > :19:11.Metology. A seal of approval from the experts. Plan B at the moment.
:19:11. > :19:13.
:19:13. > :19:18.Vince Cable it's right up your street today Plan A or Plan B on
:19:18. > :19:22.the economy? No. Maybe he doesn't have a view. I've handed over loads
:19:22. > :19:32.of balls. Let's see who is in the lead. It's Plan A by a mile much
:19:32. > :19:33.
:19:33. > :19:39.must say a lot of people have said they are voting for Plan A plus.
:19:39. > :19:45.Vince Cable, do you want to pick up one of the balls? Confident Plan A
:19:45. > :19:54.is still working? Eem' a Plan A person, not with any joy. None of
:19:55. > :20:00.us know how it will pan out over the next year. The Lib Dems I'm
:20:00. > :20:05.more into the Plan B. They are singing from the same hymn sheet.
:20:05. > :20:12.Most are in favour of Plan A, sticking the course on the economy.
:20:12. > :20:17.Who also man who like Plan A are Danny Alexander and David Laws, the
:20:17. > :20:20.current and former Treasury Chief Secretaries. I asked Danny
:20:20. > :20:25.Alexander if Vince Cable had been pressing him for more capital
:20:25. > :20:30.spending. How do we make sure the capital spending we have set aside,
:20:30. > :20:34.we we pry oror advertised on the best for the economy, how that
:20:34. > :20:37.happens on schedule. There is a problem within government. Things
:20:37. > :20:41.get delayed. We can't afford for that to happen. The second thing,
:20:41. > :20:45.is we use our spending more effectively to help the private
:20:45. > :20:53.sector to bring forward development and investment? The thing I
:20:53. > :20:57.announced on Sunday was a fund aimed at bits of local
:20:57. > :21:01.infrastructure unlock dovement sites. We are committed to sticking
:21:01. > :21:05.to the spending plans we have set out. That is so important to our
:21:05. > :21:11.nation's financial and economic credibility. It's a moving around
:21:11. > :21:19.of the deckchairs not actually adding to the number of deckchairs?
:21:19. > :21:23.I'm not sure I want to pursue the deckchairs - It's in the context of
:21:23. > :21:27.the huge amount of work that is going on within government to
:21:27. > :21:30.identify things we can do to help with economic growth. I would argue
:21:30. > :21:34.our deficit reduction plan is the foundation for growth. You can't
:21:34. > :21:39.have one without the other. Many things on deregulation, on the
:21:39. > :21:47.planning system and investment in schools through apprenticeships are
:21:47. > :21:51.there to lift the productive (inaudible) of our economy. Should
:21:51. > :21:54.the Bank of England go in for more quantitative easing? Provided we
:21:54. > :22:00.hold course on the deficit reduction plan, which is what we
:22:00. > :22:02.are going to do, if the economy remains weak weaker than we would
:22:02. > :22:06.like, because of the international pressures, then the Bank of England
:22:06. > :22:09.will be in a position to consider further quantitative easing and
:22:09. > :22:14.different types of quantitative easing, particularly as I think we
:22:14. > :22:18.know it's highly like that the uncomfortably high inflation we
:22:18. > :22:21.have had this year is likely to come back down next year because
:22:21. > :22:27.the increases in food and energy price also not feed through again.
:22:27. > :22:33.OK. He can't comment on this, but you can. You are a backbencher. Is
:22:33. > :22:42.it - is it not inevitable that given that Greece's public debt is
:22:43. > :22:47.heading for 200% of its GDP and the economy is declining by 6%, that
:22:47. > :22:52.Greece defaults as night follows day? I think that default is not
:22:52. > :22:55.the word I would use. Use what word you like. The words I would use are
:22:55. > :22:59.these, the European governments, particularly the euro-zone
:22:59. > :23:03.governments, need to come together with the Greek government to do two
:23:03. > :23:07.things. To have a serious strategy for deficit reduction in Greece. To
:23:07. > :23:12.look at whether the debts they've got, which are very difficult to
:23:12. > :23:15.manage, can in some way be rescheduled to make them bearable.
:23:15. > :23:18.You can answer, this I'm not sure you will. Are we not, when we look
:23:18. > :23:22.at what is happening in the money markets, for the financial system
:23:22. > :23:26.to work, banks need to borrow. They borrow in the wholesale market they
:23:26. > :23:30.lend to us. At the moment that is drying up in exactly the same way
:23:30. > :23:34.as it did before the collapse of Lehman Brothers. Are we not on the
:23:34. > :23:38.brink of - and the banks are not able to earn because they have
:23:38. > :23:43.things like Greek debt on their balance sheets. Are we not
:23:43. > :23:48.seriously on the brink of another major financial meltdown?
:23:48. > :23:51.wouldn't necessarily make those parallels myself. There is a lot of
:23:51. > :23:54.turbulence in the markets and uncertainty. That is fuelled in
:23:54. > :23:58.large part by doubts about the ability of politicians in many
:23:58. > :24:02.parts of the world to get to grips with the problems they have. Many
:24:02. > :24:12.people look at the United States and the Congress and the President
:24:12. > :24:13.
:24:13. > :24:18.not being able to agree. Would you like your old job back? No. I think
:24:18. > :24:23.Danny is doing too good a job. I don't think I have been missed.
:24:23. > :24:27.When will we see you back in the government? Who knows. I'm a strong
:24:27. > :24:33.supporter of Nick and the coalition. I think they miss you? I will do
:24:33. > :24:36.what I can it support them. We have good ministers. What about Business
:24:36. > :24:41.Secretary? Sorry. If you were Business Secretary you would be
:24:41. > :24:44.more on message than the current one. Despite of your mischief
:24:45. > :24:50.making attempts. We have a very good Chief Secretary stpwhrfplt two
:24:50. > :24:56.for the price of one, even in these tough times. It wouldn't be a party
:24:56. > :25:02.conference without miss chiefious journalists lurk around every
:25:02. > :25:06.corner waiting for the politicians to slippup. We asked Quentin Letts
:25:06. > :25:09.to cast a wry glance back at the week's proceed, The Liberal
:25:09. > :25:13.Democrats could have their conference confident they would
:25:13. > :25:16.never get near a ministerial limousine. Nowadays they are in
:25:16. > :25:19.Government. Don't worry, that hasn't stopped them much they have
:25:19. > :25:25.been complaining about the Government that they helped to
:25:25. > :25:29.create. Take this for some Tory bashing. Divorce is inevitable. I
:25:29. > :25:32.took the liberty of seeking legal advice about how we stand in the
:25:32. > :25:38.event of a break-up. There is good news, there is bad news. The good
:25:38. > :25:41.news, we might get half of Ashcroft's money. Bad news, we have
:25:41. > :25:48.to have Pickles at the weekend. Energy Secretary, Chris Huhne, was
:25:49. > :25:54.determined not to be out done. danger, if you don't compromise, is
:25:55. > :26:01.now clear. From America. There the markets looked over the brink when
:26:01. > :26:07.the mad cap Republican right in Congress would not compromise with
:26:07. > :26:14.the President. Let that be a warning to the Conservative right
:26:14. > :26:19.here. We need no tea party tendency in Britain. Lib Dem conferences
:26:19. > :26:25.have been docile affairs. Look at it, it's not exactly Nuremberg, is
:26:25. > :26:35.it? Nick Clegg thought he had them well under control. Does anybody
:26:35. > :26:35.
:26:35. > :26:39.want to ask a supplementary on that or... Heavens what docility. Like
:26:39. > :26:48.North Korean conference meeting. Supporting the Lib Dems is like
:26:48. > :26:52.support supporting a lower league football club. You cheer them on
:26:52. > :27:02.whatever the results. Just as they have clapped along
:27:02. > :27:04.
:27:04. > :27:09.enthuse@astically when others have attacked it. Where are they all?
:27:09. > :27:13.Some rotten so-and-sos reckon the Lib Dems are a bunch of comedians.
:27:13. > :27:17.Teeth teeth teeth proved them wrong. I thought I wouldn't keep you for
:27:17. > :27:21.too long tonight much I want it get back to my hotel room to watch
:27:21. > :27:28.Strictly. I heard they have Peter Hain booked for the next series.
:27:28. > :27:33.He's doing the tango or has he been tangoed. Rupert Murdoch is on for
:27:33. > :27:43.the series after. He has been out shopping with Andy Coulson already.
:27:43. > :27:46.They bought him a pair of tap shoes. Living dangerously. But they are
:27:46. > :27:52.coming back to George Osborne. I heard he is quite keen to get on
:27:52. > :27:57.the show as well. He wants to do a line dance. The Lib Dems have been
:27:57. > :28:01.a party with a slaigtly split personality between the old SDP and
:28:01. > :28:03.the old liberals that is continuing with the those happy to be in
:28:04. > :28:07.government and those who are resentful of the idea. This has
:28:07. > :28:10.been a week when there has been an awful lot happening abroad. I'm not
:28:10. > :28:19.sure that anything that has happened here in Birmingham has
:28:19. > :28:24.really shaken the world. Oh, well, I'm off to Liverpool. Quentin Letts.
:28:24. > :28:27.That's it from the Liberal Democrat conference of 2011. A few months
:28:27. > :28:32.ago Nick Clegg might have pt expected a lynch mob here in
:28:32. > :28:35.Birmingham. Instead, he consolidated his position and
:28:35. > :28:40.convinced us sometimes sceptical party that they had to stick with
:28:40. > :28:44.the coalition. That a loveless marriage was better than no
:28:44. > :28:48.marriage at all. For him and that party, this conference was a
:28:48. > :28:51.success. This weekend we're off to Liverpool where Labour gathers for
:28:51. > :28:56.it is first full conference since Ed Miliband became leader. Before