BBC On The Record - Broadcast: 27.02.00

Interview: John Prescott, Deputy Prime Minister

Argues that the Labour Party has remained true to traditional values.



JOHN HUMPHRYS: So John Prescott, the Labour Party has changed, clearly. You - I think it was you - that coined the phrase 'Traditional values in a modern setting' that was yours wasn't it? JOHN PRESCOTT: Yes. HUMPHRYS: But the worry has got to be that by trying to be all things to all people, you can't really assert, you can't shout from the roof tops those traditional values that have got you to where you are today and that's got to be a bit of a worry hasn't it. PRESCOTT: I don't accept that. If our traditional values, the ways that have provided people, dealt with the problems at the beginning of the century - mass unemployment, squalor and no housing, slums kind of situation, access to education and health. They are still the traditional values that I talked about which Keir Hardie had in his manifesto, was largely implemented by that Labour Government in 1945 and that's why we saw public provision so important, for education, for the Health Service and even the housing estates, we just didn't convert to them, we did that to get people out of slums into decent housing. Now in all those senses health, education, housing are still in our manifestos, they are in our little card that I run around the country with. So those traditional values are there but sometimes in the providing of them you do it within the modern setting, though with education and health we are clearly putting bigger resources through public facilities, through the taxpayers' payment to provide those things that are needed for the equality of opportunity and for the securing of social justice, of which the Labour Party is about at the beginning of the last century and indeed the beginning of this century. HUMPHRYS: But perhaps the big difference is this. As you say those problems existed then, they exist today, many of them to a much lesser extent, clearly, they have to be paid for. The old Labour Party was quite clear about it, redistribution was the way to tackle it, Richard Crossman..Tony Crossman used to talk about it and that was what you were proud of standing for. Now, is that something the Labour Party still believes in - redistribution from the rich to the poor. PRESCOTT: Well it wants to see that equality and the equality of opportunity and reducing the disparities between the haves and the have-nots but we also emphasise that we are the party of the many. Let me deal directly with the point, if you take housing for example, a very important consideration, we have taken five billion pounds of money that was held in local authority accounts, now to begin to rebuild and redo housing that had been allowed to go into decline. That didn't require any more money from the government, it did a different form of priorities. The forty billion pounds now, that Gordon Brown has got into health and education, shows again our priorities for those two areas which are about the quality of life - health, education and jobs - because of prosperous economies. And prosperous economies are an important point of that. We have got something like eight hundred thousand more people back in work, so if we want to talk about equality of opportunity we want to talk about the quality of life, having a job is crucial, living in a house, access to education and health are crucial parts of Labour's manifesto and we still do it. Now, as for the redistribution and dealing with the poverty industry, which I think is a very important matter, we have of course minimum wage which Keir Hardie called for and it's Tony Blair's government's that's actually implemented it so fair pay, out of poverty pay is an important part. The way that we have dealt with the pensions, the Family Income Allowance, the Family Allowances, the Workers' Family Credit, now which will guarantee at least ten thousand in work. That is the way we are making sure that people are not driven into poverty pay and meets the kind of equality of approach to be fair in a society. HUMPHRYS: But the old way of doing it was to make it necessary, to make the rich a bit poorer so that the poor could get to be a bit richer and old Labour accepted that if that had to be done with direct taxation then so be it. But when you came into power, you not only accepted your predecessor, the Conservative Party's direct taxation levels, you actually set about reducing then. So that proves doesn't it, that you are nervous. You are desperately nervous of this concept of direct redistribution. PRESCOTT: Well no, I think what Gordon Brown did do of course, as you suggest, he reduced the lower level ten p. We reduced the basic tax, it was a commitment that we gave in the election, it takes into account the new circumstances we find ourselves as a political party and indeed the global economy we operate in. HUMPHRYS: And the rich are benefiting as well as the poorer.. PRESCOTT: Well that's true, you could argue that case of course and in fact what we have seen is we are providing the money for public services on a scale that we haven't done before quite frankly, both in health and the education. More needs to be done, but we are doing that. We have also found new ways of raising resources for the public private partnerships in our public facilities like the Underground or the areas of public service industries which were largely dependent on the taxpayer for the investment and it failed to get the best of the provision of that investment. So all these things are a different way of doing things but our traditional values are still there, heavily at the heart of our manifesto programme which is about equal opportunity, it is about social justice and distinguishes very much from the other political parties. HUMPHRYS: Right, but the approach is different. Let me quote you what Tony Blair - Tony Wright (Freudian slip) Tony Wright said in that film and it rather suggests that he's whistling in the dark, bearing in mind what you've just been saying: 'I'd like to see Tony Blair saying we are trying to tax in new ways to raise the money we need. That taxation is a civic responsibility' - that's the important one - 'taxation is a civic responsibility because if you don't do that you've got every party in the land simply following a tax cutting agenda and that's the end of the party of the left'. He has a point there doesn't he. PRESCOTT: Well he has a point if you traditionally define it in that way. The tax burden we are talking about is the direct one and there's direct and indirect taxation systems, there are new ways of raising money which I have been referred to on the public private partnership. The Underground for example wants seven billion pounds, it doesn't come from that. So it's the balance of expenditure, government's expenditure and it's government take from tax, or indeed an increase in wealth in society, it's balancing those and provided the outcome is improving it for the many in this country, I think that's justified and if it gives the priorities to provision of health and education and homes, I think that shows the social justice agenda. HUMPHRYS: But it's goodbye to redistribution in the sense that the Labour Party has always understood it. PRESCOTT: Well you redistribute in different ways, whether it's through greater accountability on power, or whether it's in different forms of.. HUMPHRYS: I did qualify the question by saying.. PRESCOTT: ...narrow interpretation.. HUMPHRYS: ..well in the way that the Labour Party always accepted it. PRESCOTT: Well taxation has its part to play, it's still a progressive taxation, it could be more progressive you could argue but.. HUMPHRYS: ..indeed I could.. PRESCOTT: ..it is a progressive tax system but I think what we try to do is to find different ways and forms of financing.. HUMPHRYS: Stealth taxes comes to me of course... PRESCOTT: Well that is the rhetoric that is used on these occasions. All governments have been involved in different forms of taxation and they will still continue... We still believe in a progressive taxation, they will argue about the levels and indeed we do, between the political parties and within parties, but it's a lot better and the Labour Party now finds itself in a stable economic situation where the creation of wealth is far better. The growth in our economy is good and we'll reduce the amount of debt so we don't pay as much in interest and we transfer that money to pay for things like health and education. That is redistribution in the true term of the word. HUMPHRYS: All of which of course needs, you'd be the first to acknowledge, much more money in the years to come, a greater health and education and all those other ....... PRESCOTT: Better than keeping people in mass unemployment. It will all bring them opportunities of jobs so you're not putting the money into maintaining... HUMPHRYS: You don't actually have a commitment to full employment do you, not a commitment, it's an aspiration not a commitment. PRESCOTT: Well, I don't know what you call it. It's the highest level of employment that we've secured here. HUMPHRYS: But it is not a commitment... PRESCOTT: It's also eight hundred thousand more than when we came in, and we're moving to more and more full employment. HUMPHRYS: But the old part y had a commitment to full employment didn't it? PRESCOTT: Well, the old party produced full employment, but they were very much in a controlled national economy. We're in a global economy which is much more considerable, considerably different for those circumstances, but there's no reason why we can't believe that people should have a right to work and help to provide the full employment as they did in forty-seven, as we do now. HUMPHRYS: Yes, the right to work of course is very different from an absolute entitlement to work, as a result of the commitment which you are not prepared to make and have never made.. PRESCOTT: Well, at these levels of employment we've got at the moment it's highly difficult to define.... HUMPHRYS: ........the principle - we're talking about principles here. PRESCOTT: I know, I can remember when it was full employment John. They used to argue whether two-and-a half per cent unemployed was the amount of money that you had when you balanced inflation and the rest of the economy, but what is true - eight hundred thousand more people in work - it's the highest level of employment, less spent on unemployment, more people into work. That's equality of opportunity. HUMPHRYS: And that is one of the ways... PRESCOTT: That's where we make the difference. HUMPHRYS: And that's one of the ways in which you spend less money, so therefore you will have more money to spend on things like the public services, like bringing the NHS up to the standard that one of your values demands that it should be at. But that isn't happening, not happening yet because you are afraid to raise the money, the sort of money that Tony Blair admitted himself a few weeks ago was needed. He talked about - I know you told us you're putting more money in - everybody puts more money into the National Health Service. He said we need to put much more money in still to bring it up to the European level. Now, you're not going to that because you're afraid to raise taxes, as would have happened under the old Labour system. PRESCOTT: You must wait and see because the amounts of money that go into the public sector or the private sector are a matter of distribution from a government's point of view. If it wants to put more in health as Gordon Brown has done - over twenty billion pounds, however he raises that... HUMPHRYS: ... It's not.....quite. PRESCOTT: Over a three year period. I mean we're negotiating the next three years. There is the highest investment going into the Health Service, there are thirty more hospitals being built, so we've started, and we've only been in two and a half years. Now as to whether more resources are needed for the health, that's a very important point. People live longer, twice as long now as they did when Keir Hardie was talking about it. It means the demands on the Health Service has not, as Labour first thought if people are healthier there'd be less demand to put money into hospitals. No, no, medical science advances, people live longer, so it does demand more money. That's exactly what Tony Blair is saying. HUMPHRYS: And when he was challenged on that, and when he said yes, all those things that you've just said, of course it demands more money and will continue to demand more money he backed away from a commitment. The impression he gave in that interview that you'll remember as well as I was that it was a commitment, a real promise, a real pledge, a real commitment, it turned out not to be any of those things, it turned out to be a hope, an aspiration. PRESCOTT: No. We've made it absolutely clear we would continue to try and find more resources for health. HUMPHRYS: ... will you find.. It's a commitment. PRESCOTT: Well, it's a commitment for a Health Service which was our creation. Let me make this clear to you John. We created a Health Service, not as Beveridge recommended when he talked of how we deal with the evils like disease. He had an insurance system. The Liberals wanted an insurance system, the Tories wanted an insurance system. HUMPHRYS: I'm not, not talking of any of that. PRESCOTT: I know, but there's an important point here. We created it on a Socialist principle, that is treatment based upon need and not your ability to pay. That means that we have to find the resources to meet that ever-increasing demand. Now one of the controversies I'm involved in is whether you can find money from the private sector for investment in public services rather than going to the Chancellor and asking for his money. If in fact we can do that whether it's the Underground, whether it's Nats, what I'm choosing to do, I'm trying to persuade others of, that that kind of priority in public expenditure relieves the Exchequer of resources, not to invest in trains, underground, but to put it into hospitals and education. It is a re-prioritising if you like, of government expenditure within the total amount of expenditure. HUMPHRYS: It is of course a lot more than that. I mean some people would argue of course in one sense it's mortgaging the future, but you see, one of your core... PRESCOTT: Everything mortgages the future. If you buy a house you mortgage the future. HUMPHRYS: Not if you pay for something immediately then you haven't. But... PRESCOTT: Don't just move off that. Thirty hospitals now are being used on private financing, right. That means you get the hospital now instead of waiting with an old decrepit hospital for twenty years. You just asked me first of all what the public want, and there's no doubt they want that, and secondly if you want good quality public services that is the way we find new ways of financing, it's traditional values in a modern setting. HUMPHRYS: In a modern setting - as we kicked off with. I knew you were going to say that. But let's look at this hugely important question of ownership. Now, you were proud of public ownership many years ago. You are now so embarrassed by the very notion of public ownership that you run a mile from it. I mean that is not just a hundred-and-eighty degrees, that's if it's possible more than a hundred-and eighty - you've gone away - even, even if, even if - let me finish the point - even if the public appears to want it, as is the case with the London Underground. You've run away from it. PRESCOTT: Well, I haven't run away..... HUMPHRYS: Because you're embarrassed by public ownership. PRESCOTT: No, I'm not embarrassed, in fact - but wait a minute. The London Underground is actually remaining in public ownership. Can I say that? It's not got shares, it's not set up to be privatised. It is owned by Londoners. All I've done is to say that when it was publicly owned Treasuries never ever found enough money to put the investment, that's why it's creaking and groaning. They never give more than two years. On this proposal we will be able to get the investment guaranteed well over twenty years, we will modernise the system and the assets once modernised, like a mortgaging facility come back to London. It's not privatised. HUMPHRYS: Well, you'd better tell all this to Frank Dobson because he's now running away from this notion. He seemed to be on board with it, but now he seems to be running away from it. PRESCOTT: No, what he said is that he wants to ... HUMPHRYS: He wants to have another look at it. PRESCOTT: No, all he's said is he wants to make sure it's the best value for money. No, wait a minute... HUMPHRYS: Well, he was convinced...... PRESCOTT: I know, ... no, no. When Frank was doing hospitals he was doing precisely that. I am required by parliament to be able to produce a price for a product in this case which is best value for the taxpayer and the community. If I can't prove that then it would fall. Some hospitals fell because they couldn't prove it was best value, but don't run away, it's still publicly owned, publicly accountable, run by Londoners, and they'll get a modern system back, and that's why I'm critical of the public ownership. Public ownership never ever gave investments, so actually were water, electricity or Underground more than two years. I want to break out of that, to make sure we get the best of the public sector and the best of the private sector working in a partnership. HUMPHRYS: And you've explained all that to Frank Dobson. Presumably that's what you're going to tell Ken Livingstone when you meet him this week. PRESCOTT: ...no, no, no, no, no, no HUMPHRYS: What are you going to say to Ken Livingstone, look, I'll do some of the things that you want. PRESCOTT: No, no, look, look, the public/private partnership was in our manifesto. Ken says he supports manifesto. It's not.... HUMPHRYS: ......no concessions to him than at all PRESCOTT: ......wait a minute, wait a minute, it's passed in legislation, Ken voted for it, I voted for it, Frank Dobson voted for it..... HUMPHRYS: What's the point of meeting him them. PRESCOTT: Well, I'm not meeting him to discuss that. I wear my Deputy Leader hat, and I'm talking to him about the party considerations, and I hope Ken, who signed up for the manifesto, who signed up to agree the election result, will now reflect on this position and not join those who walk into the wilderness. It was Ken who said, I was born Labour, I'll die Labour, and I hope that's what Ken will do, come back, join, make sure he sticks with us and get behind Frank Dobson. I'm not discussing any manifesto commitment, I can't change the manifesto any more than he can. Party members decide our manifesto. HUMPHRYS: So it's back off to Ken Livingstone, back off, or else. PRESCOTT: Well it's nothing to do with the tube, it's to do with.... HUMPHRYS: ...no, no, I'm saying, what you're saying to Ken Livingstone is knuckle down.... PRESCOTT: .....I'm saying, Ken, you've always said you are a Labour man, you wrote up and said you would sign the election of this, you'd accept this election result, you signed up for that, you signed up to say you accept manifesto commitments, all those now have been decided, why are you not now joining with us to fight the Tory candidate and .... HUMPHRYS: .......doesn't seem a lot of point PRESCOTT: .......and make sure we have a Labour man. HUMPHRYS: Doesn't seem a lot of point in meeting him does there because he knows that's your view, you've made it clear in very strong language over the last weeks. PRESCOTT: I know, but I didn't arrange this meeting, the General Secretary of the party arranged it... HUMPHRYS: ......so you don't want it.... PRESCOTT: .....and asked would me.... I would always meet with people I hoped would stay in the Labour Party. There are many people who have left. You know, you've got, you've got Molesley on the extreme right went out and they got lost, you've got Hatton on the extreme left, if you like, one way, and somebody like David Owen in the middle, they've all left, but eventually the Labour Party's marched on, delivering social justice, and I say to Ken, stick with us Ken, you're a Labour Party guy, let's make sure Labour wins this election. HUMPHRYS: Alright, well let me move on at that point to another area, because you are going to stay with us for the rest of the programme I am happy to say.
NB. This transcript was typed from a transcription unit recording and not copied from an original script. Because of the possibility of mis-hearing and the difficulty, in some cases, of identifying individual speakers, the BBC cannot vouch for its accuracy.