BBC On The Record - Broadcast: 19.11.00



==================================================================================== 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 ==================================================================================== ON THE RECORD RECORDED FROM TRANSMISSION: BBC ONE DATE: 19.11.00 ==================================================================================== JOHN HUMPHRYS: Good afternoon. Political leaders are meeting in Holland this week to save the world from global warming. I'll be asking John Prescott if Britain's effort is running out of energy. AND is he really planning a big shake-up of the railways? I'll also be asking the Defence Secretary Geoff Hoon why we're prepared to send so many British troops to fight with a European force. And are Britain's council houses going under the auctioneer's hammer? That's after the news read by Nicholas Witchell. NEWS HUMPHRYS: Will Britain's defences be weakened if we commit ourselves to sending a quarter of our army to fight with a European force? And is the government planning a big sale of Britain's council houses? JOHN HUMPHRYS: Most scientists seem to agree that the world is getting warmer and that it's our fault. We use too much energy and pump too much carbon dioxide and other chemicals into the atmosphere. They've been meeting in Holland this past week for another summit on global warming and the political leaders are joining them now for another week of talks. The scientists will tell them that the situation is even worse than we'd been led to believe and that the earth is likely to get a lot hotter over the next fifty years than they'd thought. Britain is the good guy in all of this. We were set a target in Kyoto two years ago for cuts in CO2 emissions but the government says we might even double that. But we've had it easy so far. We've switched from burning coal to generate electricity to burning gas and we can only do that once. And we still have nuclear power stations generating electricity, and they are going. The other big factor in all this of course is transport. We need to use our cars less and there's no sign of that happening. On the contrary. But at least WE are trying. Unlike the world's biggest polluter, the United States. The Deputy Prime Minister John Prescott is responsible for all this and he's in the Hague now. Good afternoon Mr Prescott. JOHN PRESCOTT: Good afternoon John. HUMPHRYS: We'll come back to Britain later in this chat if we may, but let's look at the world picture first, and that's fairly bleak isn't it, because without America we can't make the progress that we need. America must reduce its emissions and that it seems isn't going to happen. PRESCOTT: Well John I think everybody's got a veto here. You can be a developing country and you've got certain things that you want from it. Europe has a clearly different agenda to the American and what we call the umbrella group, so everybody could veto it, and that's precisely what was at Kyoto and I remember you and I being on the Today programme talking about whether the Americans would move from a zero cut, and you said no, they won't. Well we got seven per cent on their nineteen-ninety levels and that was an improvement and that's why we clinched the deal. So at this stage we are facing everybody putting their negotiation positions forward and the politicians now have to find an agreement. HUMPHRYS: Yes. And that was the principle, but this is now the practice isn't it, and what we want is for America to make fifty per cent of their cuts at home, actually to cut pollution as opposed to doing it in every other clever way. And there's no chance of that is there? PRESCOTT: Well you've just put a condition on that. I mean the Americans are not very happy at setting ceilings. What they say is that if we can achieve the targets that we've set for ourselves by other means, which are being discussed here, than simply domestic policies, that's not very acceptable to Europe of course, and that's one of the arguments that will take place and we'll have to find agreements about it. But you know America has already been softening its position from the last time at Kyoto. I'll wait and see what their final negotiation position is before I come to a conclusion. I do think you can get an agreement and I've started my walking and talking that I had at Kyoto. I've talked to the chairman of conference, I've talked to the Americans and I'm talking to other countries, and hopefully, by mid-week, we'll get an idea where the real difficulties lie and that we can concentrate our minds on. HUMPHRYS: And the difficulties with those other means as you sort of suggest there is that what many people believe that means is exploiting loopholes in essence. I mean for instance they're going to buy permits from places like Russia and the Ukraine which will in effect allow them to pollute, and many people say, people like Greenpeace say that's a sort of cheat's charter. PRESCOTT: Well, these are the arguments going on at the present time, but at Kyoto we were very clear. We said the use of forests, which are called sinks here, carbon sinks, would be part of it and they would be the new trees. Since then during the last two years since they've been negotiating the bits and pieces that make up these agreements they've taken it further, and said well, all trees should be involved in it, and there is an estimate made and a number of the NGO's, that's the green groups are saying, if you look at the forests America got and you take everything into account they wouldn't have to do anything in their own domestic economy, like something on cars or fuel. Now that's an argument, the Americans are strong about it, so is Europe, but these are negotiated positions at the moment and there are some signs that some give is coming in this situation. HUMPHRYS: But that's an argument that you clearly from what you're saying, are not prepared to accept. I mean they've got to make cuts haven't they? PRESCOTT: Well, I would say my main judge in this John is to say I look in the agreement for it to have any credibility whatsoever, it must reduce the greenhouse gases below the levels of nineteen-ninety by twenty-ten. Now if any agreement doesn't do that it will lose all forms of environmental credibility. Now I know the greens say sometimes to me: But you know the advance isn't much John, you're not talking - five per cent's very small compared to the kind of the scale of the problem. What I would say in answer, as long as we've got a programme legally binding that will reduce it, at least we've made the start, we've changed the direction, we're going globally to deal with the global solution which has legal implications for all the developed countries signed up to it. HUMPHRYS: And that would mean that America would have to make real cuts as opposed to simply saying you know, let's exploit these loopholes? PRESCOTT: Well, I think that's what we've always said to the Americans. You know when we signed at Kyoto we made it clear that Europe was always feeling strongly that you have to take certain domestic actions and you can't solve it by these kind of mechanisms on their own. And that is the nature of the disputes at this stage between us which negotiations have to settle. You do remember John that they weren't going to make any change in their gas cuts when we started at Kyoto, and they went to a seven per cent which means effectively something like a twenty-five to thirty per cent cut in their gases in ten years' time. HUMPHRYS: Yes. The trouble with that though is the political situation has changed hasn't it. It looks as though we're going to have a President Bush. It's going to be more difficult with him isn't it? PRESCOTT: That's an interesting point John. I mean you can only have one President at one time really can't you. HUMPHRYS: At the moment.... Quite! PRESCOTT: No, no, but there's only one President at the moment, and that's President Clinton, and I just wonder - you know it was President Reagan that took American into better relations with China when you wouldn't have thought that, and Nader has made an effect in those elections that the green groups, and I disagree with what the green groups have done there, but in Florida it's shown that it was a balance that it could have been for Gore and not for Bush. Now that might change the political terrain whoever wins this presidency, but they are the difficulties we have to take into account and they are only one small part of them, there are many. HUMPHRYS: Well that's certainly true. Let's go to the United Kingdom now. We've done well, so far obviously better than pretty well anybody else, but.... PRESCOTT: ...we're leading the world... HUMPHRYS: Absolutely, but it is now going to get tougher isn't it. From here on in, it gets really tough? PRESCOTT: Well, in the sense that we have now mapped out our programme on climate change. We launched it on Friday and a lot of attention was given to it, and indeed I think the floods have concentrated people's minds on the connection between climate change and how it can affect you at home. Now we set that programme out and the commission have reviewed all that nations' contributions in the European community and we come out the best with Germany. Now I'm very proud of that, it shows that we've set a programme, we will achieve more than was actually set up under the Kyoto agreements and we've set out where they can come, and I think people have agreed it's a realistic programme and I'm proud that we're leading the way in that. It gives me a stronger negotiating hand over here to say, Listen, we led the way when we came at Kyoto. We continue to lead the way and it's not simply because the coal industry was closed down. We've made very practical promises which industry now recognise. More efficient industry is better for them, warmer houses are better for people to work in, more efficient cars, less polluting is better for everyone and even the industry accepts that so there is a major change coming about, so technology, style of living, all these will contribute to achieving our targets. HUMPHRYS: But it is going to get tougher from now on isn't it. There is more to do and it is going to get more difficult now, because we've made the great savings as it were, converting coal-fired power stations into gas. We can't keep doing that, we can only do that once, and it is going to get more difficult now isn't it? PRESCOTT: Yes, but certainly the decimation of the coal industry by the previous administration allowed you to claim you'd done something on that side, and achieved our targets that we set are real. But all the other areas now, efficiency gains, the climate change levy, all these are major contributing parts to which we have agreement with industries and sectors now to implement it, and I'm looking forward to doing that. HUMPHRYS: But the reason I say it's going to get more difficult in future, is we are going to face some sort of energy gap aren't we. By two-thousand and twenty our nuclear energy is going to drop from what it is at the moment about a quarter of our total energy supplies, electricity supplies, down to three per cent. We have to fill that gap. It's going to be terribly difficult to do that isn't it? PRESCOTT: Oh yes, there are many alternatives we can use, one of the things about Britain of course, it has had tremendous energy alternatives but it's not easy. Of course none of these programmes are easy but neither is it easy living with the fact of floods and the kind of climate change problems that are occurring in Britain as we've seen quite recently and I think that's educated quite a few of our public to say there is something wrong here, that we have to make changes. And I've got to argue those. For example, if I say why is it certain towns didn't build their flood defences when the money was there and those that did were protected. I think you have to convince the electorate and I have to argue the case, trying to argue to use public transport more than your private car I'm bound to say has not been an easy argument John as you know, on your Today programme. But I argue it and we are going in the right direction and we are leading the world in making a change. Yes, it's a global problem and it needs a global solution, that's why I'm here in the Hague. But it also needs a transport solution, that's why I've given a hundred and eighty billion pounds to the whole business of transport, far more than has ever been given to the transport industry before. HUMPHRYS: Come to transport in a second but as far as that energy gap that I was talking about is concerned, we are not going to be able to plug that gap are we. It's a very big gap, we are not going to be able to plug it with what they call renewal sources of energy, wind power and all the rest of it... PRESCOTT: ...that's under par... HUMPHRYS: ..but only ten per cent by two thousand and twenty, that's not going to be enough to fill it, is it. So I'm not quite sure how we are going to plug that gap. PRESCOTT: We have spelt out in a number of our programmes where we think the demands for energy can be met but of course the increasing demand for energy and any modern economy continues to increase, but one of the things we want to do, we don't use energy efficiently enough. You know, as an example, when I came in in nineteen ninety seven, we were leaking so much water I called the water companies and said I'm not going to agree reservoirs, stop the leaks. Nearly a quarter of the leaks actually were reduced, that's enough water to keep London for a year. We are changing and that's the same with fuel, cars will not use as much fuel, they were be much more efficient, different types of technology. So it is a challenge and that's what the Climate Levy is about, getting people to use energy much more effectively. HUMPHRYS: But are we changing fast enough. Germany for instance, tells... PRESCOTT: ...I'll be there chasing... HUMPHRYS: I'm sure you will, but I mean here's one you can chase, Germany says look you've got to treble gaze your house, saves a lot of energy. Are we prepared to say to people you've got to treble gaze your house, or triple gaze it, whatever you call it. PRESCOTT: We have got programmes for improving energy. I'm actually putting quite a lot of money into housing to achieve that, that's one of our measures we announced on Friday... HUMPHRYS: ...making them do it is... PRESCOTT: ..pardon? HUMPHRYS: Making them do it is the thing. PRESCOTT: But we are doing it John. HUMPHRYS: I'm sorry if you've got a problem there - what I am saying is that we don't actually insist upon it, do we, we don't say to people, you know this is how it has to be with new houses in future. PRESCOTT: Perhaps we don't give the instructions in the same way the Germans do, what we say to the Local Authorities is here is the programme, here's the money, we want you to do it and we are already beginning to see it happen. We also want new rules and regulations about the design and quality of houses which we are changing. And all that we set out in Friday's programme and that programme has been accepted as the most realistic and acceptable by the commission and most of the observers note that it's a good programme and one that this party..this government has put in to achieve in the long term. HUMPHRYS: Let's look at transport now then. This is terribly difficult isn't it. Your own projections tell us that carbon dioxide.... PRESCOTT: ..you can say that again... HUMPHRYS: ..carbon dioxide emissions from all road transport, including lorries and all the rest of it are going to increase by fifteen per cent by two thousand and ten, thirty per cent by two thousand and twenty and we are actually, there are no signs at all of us using our cars less. So how on earth do you square this circle? PRESCOTT: Well first of all there's a technological advance and what the Europeans have done and this is where the European card is quite important, they have negotiated with all the motor car manufacturers who want to sell cars in Europe, massive increase in the efficiency of the motor vehicle itself, the reduction of CO2 gases. And I think even the Tories argue that's all you have to do. But let me just say, that is an important step forward and on the alternatives, are the public transport. Where we have things like in Manchester, where you have got for example light railway systems, where the very convenient and good alternative transport show that people leave their cars at home on a number of occasions and use the public transport. In Europe they have more cars per head than we have but they use public transport more and the basic reason is we allowed public transport to run down. I've got to provide better choices, better quality, more reliable. And as you can see, and everyday on the television that is not easy to do, but I've found the resources, I've found the legislation, now it's the timetable to reverse all the dis-investment that has taken place in our transport and forced people to use their cars more because they couldn't rely on the public transport system. HUMPHRYS: Exactly, but you talk about forcing people. I mean there do have to be sticks as well as carrots doesn't there and Gordon... PRESCOTT: ..I'm not forcing people... HUMPHRYS: ..some people of course that you should. But let me just look at what Gordon Brown did, well alright, but let's look at what Gordon Brown did in his mini-Budget, he cut the price of fuel. Well now that's not exactly a disincentive to using cars is it, Imperial College reckons that that adds 1.5 per cent to car journeys. So he didn't help you very much there did he? PRESCOTT: Well John, I've got to say that that's part of a kind of disingenuous argument that's going on at the moment. If the argument is that the cost of fuel, however it is made up, its world price and its tax, has an effect on reducing the vehicle..use of vehicles right, and you can argue about that, if that is the argument, then I'm bound to say it has increased despite whatever tax has gone because fuel prices internationally have gone up. So that has not changed in regard to that, all that's changed is the refusal to continue the Fuel Duty Escalator. HUMPHRYS: But I mean you're not suggesting are you, that the price of fuel is not a considerable factor in the extent to which we use our cars? - fuel is more expensive we use less. PRESCOTT: It is one of the main reasons but if I look at the costs of cars, whether it's the RAC or the AA surveys, it's a lot cheaper to run a car now because the level of efficiencies and technologies have made private transport still much cheaper again because of that. And people will just judge the car on the fuel price, I understand it but it's not the total price, but I have to live with what they think. But we are back to the same point, fuel is still costing you more than it did twelve months ago and that's nothing to do with our tax policy. HUMPHRYS: Yes, but Gordon Brown cut the price of fuel in his last Budget and Imperial College calculated... PRESCOTT: ...environmental, yes to reduce the amount of gases and make our air cleaner with the sulphur proposal and that is one step towards getting even better fuels to be used in other different cars in the future. And it's a step in the right direction but it's still got a carbon... HUMPHRYS: ...doesn't help the CO2.. PRESCOTT: ..well it has that problem I agree but there are a number of changes coming and as I understand it in the new technologies coming in the cars and new fuels, you need to make that step to improve it first. But all in all, John, it is advance in the right direction, it is putting environment at the top of the list and making sure we get it at the top of the list, keep it at the top of the list and begin to get the kind of changes in public opinion that we are beginning to see.. HUMPHRYS: The trouble is, even with all of those things, and I've got your great big DETR, your department's document in front of me, Climate Change the UK Programme. Even allowing for all of that there is going to be a big increase in the amount of CO2 that we emit from road transport over the next ten and then, over the next twenty years. This is a very serious problem for us, we'll have to something more than we've done, in other words. PRESCOTT: Well, I think there are lots of things and indeed trying to get a public transport in a decent state like they have in Europe is one thing that I am trying to do. And planning our estates so you don't have to get in a car to go to a hospital or schools, the new millennium estate that I've developed up on, in Greenwich, means that you can have a lot of these facilities near to where people live without having to get in the car to go to them. Now you have got to change a whole kind of life-style, the way we plan our houses, the way we meet the services people require, the new Urban White Paper, which I've just launched is partly about that, there's the Rural Paper in the next or so. All these are changes. I can find the framework, but governments can't do it on their own. It's about how we get people to recognise, do you still want to have the kind of extreme weathers we have, with the consequences we've seen with floods, or do we want to make a change? HUMPHRYS: Well... PRESCOTT: It was a man-made solution, let's find a man-made solution to solve that difficulty of climate change. HUMPHRYS: And they might well say we'd love to use public transport. We'd like to use the railways, but look at the state of them, there is a crisis of confidence in the railways at the moment, you... PRESCOTT: ....massive dis-investment over a long time... HUMPHRYS: ...absolutely, and you've acknowledged that, but then over the last few months we have seen that crisis of confidence increase. People have lost confidence entirely. Do you, yourself, feel that Railtrack, the people who are after all responsible for the railways, the railway infrastructure, do you think they've let you down? PRESCOTT: Well first of all, John, people travelling by rail has gone up by eighteen per cent over these last two or three years ... HUMPHRYS: ...starting to fall now, though isn't it?... PRESCOTT: ...so they have been using the rail. But there's an increase, before it was a decline, now we've seen an increase. But your point generally about have we got the organisation on the railways right - well I've always thought we haven't, that's why I was bringing legislation in for a strategic rail authority, that's why I've got a massive amount of money for rail investment, the huge amount that everybody says has never been there before, sixty billion pounds, so I've got the legislation, I've got the resources, what I want is a proper organisation that can deliver it, and I want it to be safe. that's why I've looked at the Cullen Report, to give me a report on the safety in the industry. Now the Opposition have said, that the fragmented kind of organisation they've given us was wrong, that the privatisation solution didn't work. What I have to do is to make changes. And that's why I brought in the strategic rail authority to begin to see, with the regulator, to get a kind of railway that is safe, modern and got the investments and that's what we have now on the table. HUMPHRYS: And what you're going to start this week, we understand, using the strategic rail authority and all the rest of it, is to take a very hard look at Railtrack, and perhaps to clip their wings, to take some of the responsibilities from them, that they have at the moment and there is in other words, going to be a fundamental review. Is that right? Fundamental review? PRESCOTT: Well, I don't ... no I hear tales, what's said in the press today, let me just say what the facts are. When Mr Corbett said that he believed that the actual railways had a conflict between safety, punctuality and reliability, you'll remember he said that. I said well, I don't see that so, but I'm prepared to listen to anything that threatens safety on the railways, so I asked um, Alastair um... HUMPHRYS: ...Morton PRESCOTT: ...Alastair Morton, to go in and discuss with them what this kind of reorganisation that he was calling for. He set up five working groups and they've been working for the last couple of weeks. When he announced his resignation, I then asked Sir Alastair that would he meet the new Board and find exactly where we lay, where they lie now in delivering on a programme that was given to us, a recovery programme, and what their views were in the reorganisation of Railtrack. HUMPHRYS: And now he's going to do that. PRESCOTT: That was two weeks ago. HUMPHRYS: Right, right. And where has that got then. I mean, what's the conclusion of that? Or have you not got anywhere with it yet? PRESCOTT: I don't know because he hasn't reported back to me and he was discussing with Gerald Corbett then of course, 'cos he was the person who'd made those points, made similar points about safety should be different inside the Cullen Report, but he has now left and clearly, Alastair Morton has to ask the Board, since they've had a change, and a possible change in a Chairman, how does the Board's policy now relate to the promises they've made, that's quite proper to do so. Do remember, I have the obligation under legislation to see there's a safe railway, and I'm advised on that by the Health and Safety Executive, so I have a direct statutory responsibility, to be assured about that. HUMPHRYS: Indeed, and you weren't sorry, as we understand it, to see Gerald Corbett go, for a variety of reasons. You're now talking through.... PRESCOTT: ....John, don't just make that assumption. If you say... HUMPHRYS: ...well, did you beg him to stay? PRESCOTT: ...well, it's not up for me to say who the Chief Officer should be of Railtrack. My obligation is to see that Railtrack, whoever's the Chief Executive, or Chair, carry out their obligations that they have on a licence to run the railway from the Regulator, and in regards to safety, from me as the Secretary of State. Who they choose to have to run it is their decision. What they do, and how they do it, I have some responsibility for. HUMPHRYS: Well indeed and it's possible for you to offer a bit of support one way or the other if you want somebody to stay. PRESCOTT: No, I think it would be quite wrong. Let me give you an example John. I think it was..was it your Ed Stourton on your programme having a go whether I support or didn't support - could you imagine if I said, yes I did support - you'd have come on to me saying, do you think it's right to sack him when you said you supported him. It's not for me to make that decision. It's a decision for the Board. If it was a nationalised industry it would be a proper one for me... HUMPHRYS: ...alright, let me just ask you a straight-forward question then, do you have confidence in the existing Board, given that it's now got a new Chief Executive, who's an accountant, and not a railway man, do you have, do you have - hope you can hear me alright - do you have confidence in the existing Board of Railtrack to do what is needed in the time that it is needed in? PRESCOTT: Well I've asked Sir Alastair to go in and talk to them about their ideas they want for change. Now I would certainly want to hear what's said about that before whether I've got an agreement with the Railtrack Board. Let me give you an example. The Railtrack Board under Sir Gerald Corbett, went to, Gerald Corbett, went to the Cullen Enquiry and said they want to keep completely safety in their hands. I disagree with that. There's got to be some independent safety authority in this. It's a matter of debate. Now I don't know whether the Board still agrees with that statement that was made there. I'm entitled to ask, and when I get the reply back from Sir Alastair and other discussions I'll give you an answer to that judgement, to that question. HUMPHRYS: John Prescott, many thanks. PRESCOTT: Thank you. There are still about five million council houses in this country. Many of them are in a pretty terrible state and the government says that's how they'll stay if it's left to the local councils. THEY say they don't have the money to do all the repairs that are needed. So the government's solution? Sell them off wholesale. They've already begun - in Glasgow. But as Iain Watson reports, many Labour MPs and the tenants themselves are saying: it'll happen only over our dead bodies. IAIN WATSON: Glasgow - last year's UK city of architecture; although it's a fair bet the accolade wasn't based on the design of the council housing. But now, something on a scale never attempted before is happening. Labour say it's nothing short of a revolution but it's not of the traditional, socialist variety. All of this could soon become a thing of the past, I'm talking about council housing. Here in Scotland the Labour/Lib Dem coalition have plans to transfer all of Glasgow's council homes, lock, stock and barrel, out of local authority control and in other parts of the UK they are watching eagerly to see if they can get away with it. But plans for the wholesale sell off of council housing in some of Britain's biggest cities is provoking strong opposition - both inside, as well as outside, the Labour Party. SEAN CLERKIN: The policy of stock transfer is a policy of gentrification - it's a form of social cleansing. FIONA HYSLOP: We saw the consequences for government when Scotland was used as a guinea pig for the poll tax. I think the size and scale of the Glasgow proposal and the fact this is one of the first ones will mean it will have big political consequences, both in Scotland and in the UK. LYNNE JONES MP: The new organisations will have to raise finance on the private markets and so it will be the banks and the financiers that eventually will be calling the shots. WATSON: Years of under investment means that around 1.6 billion pounds needs to be spent on Glasgow's 94,000 council homes - a sum beyond the reach of local government, because of Treasury rules, local authorities are placed under greater supervision than housing associations. Unlike councils, they can happily borrow large sums without this counting as public expenditure, that means more cash for the most needy estates. JACKIE BAILLIE: I think stock transfers represent an excellent way of ensuring there is radical new investment in our stock which is much needed and that we get the wider benefits of community ownership which is about regenerating communities across Scotland. At the heart of this is what the tenants themselves decide because the whole stock transfer proposal is of course subject to a full ballot of all tenants. HYSLOP: This whole issue is driven by finance, by getting housing off the public books and not about tenant empowerment and involvement. If you want tenant empowerment involvement, you have small scale transfers, or you make sure you do it under the local authority through devolved management. WATSON: With two by-elections in Glasgow this week - one for the late Donald Dewar's Westminster seat and another for his place in the Scottish Parliament - the SNP have made housing a key part of their campaign. But these canvassers are not politicians - they are tenants. There will be a ballot next year to see if they want to transfer to a specially-created, not-for-profit housing association which would have places for residents on its board. But a campaign is already underway for a NO vote. ACTUALITY CLERKIN: The tenants feel that their rents are going to increase. That housing benefit is going to be cut. That there's going to be more evictions and homelessness because they won't be able to pay their rents out of their income support etcetera. WATSON: Sean Clerkin, the leading opponent of housing stock transfer, is not actually a tenant himself - although more than forty tenants and residents groups have affiliated to his campaign. The Labour-led Scottish Executive say these campaigners are stirring up irrational fears. They say most tenants, who are on housing benefit, won't be affected by their plans, while the rest will face only a modest increase in rent. BAILLIE: If you consider the experience with housing associations, they have given guarantees that they will not increase rent beyond the sort of rate of inflation plus one. All those commitments have been met and if you take Glasgow as an example, you know we've given a firm guarantee over the next five years as part of a thirty year package for housing in Glasgow. So the assurances have been given and indeed when you compare it to local authorities, council rents have risen by a greater proportion. WATSON: The campaigners against housing stock transfer are inviting all the candidates in the Glasgow by-elections to a public meeting. The SNP say everything's on hold unless tenants decide to leave council control. HYSLOP: It means there is no investment in Glasgow housing just now, it's been on a starvation diet of investment, waiting for this ballot. Effectively it's blackmailing the tenants and that is completely and utterly unsatisfactory. BAILLIE: This isn't about bribery, this is about saying we want the best possible housing conditions in Scotland. Frankly, you know we can achieve it in ten years or you can wait thirty years, that's not a choice that we're prepared to make. The reality is by going down the route of community ownership, with all the wider benefits that that implies we are talking about being able to address all those concerns about repairs, about improvements in the space of ten years. WATSON: The Labour/Liberal Democrat coalition in Scotland is being attacked from both left and right. The SNP and Scottish Socialists say they lack the political will to invest in council housing; the Tories blame years of mismanagement by Labour local authorities. The tenants say there are bigger issues at stake CLERKIN: The transfer policy is going to lead to a mass policy of gentrification here in Glasgow, 34,000 council houses are to be knocked down and here in Drumchapel 1,000 council houses are to be knocked down to be replaced by a thousand private houses for sale. WATSON: Tenants believe they are being used as pawns in a bigger political game. Glasgow has a long history of housing militancy, the rent strike here during the First World War has been written into the annals of Socialist struggle. Then after the Second World War the Local Authority filled more than half the city with council homes. So if this bastion of old style Labour municipalism can be broken perhaps other lesser citadels may also fall. CLERKIN: Essentially Blair's government wants Glasgow to go private so the rest of Britain goes private on housing. We are confident that we'll get a No vote next year and that'll stop the privatisation of public sector housing and essentially all the opinion polls and all the surveys indicate that there will be a No vote. MARK STEPHENS: The Glasgow stock transfer could be very much a sort of Danish referendum of British housing. The impact in Glasgow could be felt far beyond Scotland's borders - part of new Labour's agenda is quite clearly to modernise, to use that word, local government and this is part of it, that local government should perform a strategic role rather than providing many of these services directly itself. WATSON: Birmingham - Britain's largest landlord after Glasgow, is also looking at ways to get new investment into housing. They're considering four options - all of which would mean more private money, in return for less council control. A final decision will be taken in February following a series of consultants reports. The council says the present situation can't go on. COUNCILLOR DENNIS MINNIS: Continuing as we are, really is a non-starter because we don't have access to the sort of money we need. What we do at the moment is to patch up some properties, direct some resources here and there, but we are inundated all the time, every year, from tenants who are saying, when are you going to get round to putting central heating in for me, or putting double glazing in somewhere else, or repairing the roof. The enormous task with eighty-eight thousand properties is just unbelievable. COUNCILLOR JOHN LINES: This council is going to spend tens of millions of pounds in setting up this so called deal, before they've asked the tenants. The government is not going to give them any more money because this government doesn't trust this council, any more than the previous Conservative one did. And what they could do is spend all that money on carrying out the repairs to our properties for the benefit of our tenants. WATSON: It may look as though these repairs and improvements are happening on a council estate - but this, according to Birmingham's Labour leadership, is really a glimpse into the future. Tenants on this inner city estate voted by a margin of two to one to transfer to a new community housing association, called Optima, a little under two years ago. With a mixture of extra money from the government and the private sector many of the improvements tenants wanted to see are now under way. Birmingham is considering transferring all of its eighty-eight thousand homes out of council control, but unlike Glasgow, it wants to see ten different community-based landlords take over from day one. These would be all modelled on Optima and would include high levels of tenant representation. MINNIS: Since the properties in my ward went to Optima, I cannot recall having had one complaint about any aspect of the housing, in that area, in terms of repairs, in terms of environmental matters, in terms of grass cutting, in terms of problems with lifts or doors and the whole lot, which does show that Optima is doing it right. Now I want to get it right throughout the rest of the city and the tenants deserve that. JONES: I can understand why the tenants wanted to transfer for Optima, because they would guarantee that there would be extra investment. That is not going to be the case if you have the whole of the ninety-thousand properties owned by Birmingham City Council transferring. Nearly all of them need investment and it's going to take time. It's going to be at least a ten-year programme, so people voting are not suddenly going to find, if they transfer, that the sort of investment that they've seen with Optima is going to become into their homes. So people need to be told the truth. WATSON: At a meeting in the community hall at the heart of the estate which the new owners, Optima, now call Attwood Green, tenants are finding out about future development plans for their area. Unpopular tower blocks will go; new low-rise private and rented housing will be built and a lot has already happened in eighteen months of new ownership. ACTUALITY WATSON: But there's also a downside. Tenants who moved on to the estate after the transfer pay rents that are five per cent higher than their neighbours. Some say the price of improvement is just too much. TENANT 1: We're actually going round with a petition because they want to come in next year doing fitted kitchens that we have got to pay for and we're up in arms. TENANT 2: One thing that Optima's done is that now we've got the cash in the bank and we are going to do what we said we're going to do and certainly if they don't, I mean for one, as a tenant director, part of my job is there to make sure that they do and I'm happy to sort of take on that role. WATSON: The government wants to see two-hundred-thousand homes transferred each year out of the control of English local authorities. That would mean a decade from now, almost half the council housing in England would be under new ownership. But a Labour whip has told On The Record there could be opposition - especially from northern MPs who've been councillors; they are far from convinced that a change of ownership can improve the nation's housing. But it's here in the West Midlands that the fightback has already begun. JONES: We've got to press the government to get more investment in areas like this so that... WATSON: Lynne Jones is the MP for the Grange Farm Drive Estate. She's being shown the effects of under-investment by the local housing manager. The government has given undertakings to write off Birmingham's housing debt of six-hundred-and-fifty million pounds, but only if the council gives up ownership. Lynne Jones launched a campaign last week aimed at persuading her own government to stop loading the system against local councils; tenants, she says, should not feel forced to change landlord. JONES: They should be given a real choice. Not a choice where they're told that the only way you can get investment is if you vote for a transfer. That is unfair and tenants perceive it as unfair. The government has committed itself to bringing the social housing stock up to a decent standard in ten years and that should be available whether tenants are in the council sector or in the registered social landlord sector. It's a fair deal that's needed for council tenants. STEPHENS: The government is clearly using its powers to set the agenda, it is creating financial incentives to encourage stock transfers, the big question is could programmes of improvement such as those that are proposed in cities like Glasgow and Birmingham, could these improvements be obtained within the current structure? The answer is almost certainly no. WATSON: There are two by-elections this week in Glasgow, but it's the ballot of tenants next year that is likely to have much wider implications. Their decision on whether to transfer to a new landlord will be watched closely throughout the UK. Only then will we know if we are witnessing the beginning of the end of council housing in Britain. HUMPHRYS: Iain Watson reporting there. JOHN HUMPHRYS: Many European leaders want a European army. Britain says it doesn't - but we are prepared to contribute to a European rapid reaction force capable of keeping the peace in situations such as Kosovo. This week European leaders are meeting to agree on who is prepared to contribute what. It's been reported that we are prepared to commit a quarter of the British Army, half the Navy. Critics say it makes no sense because Britain's forces are already stretched too thinly. It would cost too much money and we simply couldn't afford to meet that sort of commitment. Well the Defence Secretary, is Geoff Hoon and he's in our Nottingham studio. Good afternoon, Mr Hoon. GEOFF HOON MP: Good afternoon. HUMPHRYS: It is going to be a big commitment this isn't it, roughly what sort of numbers are we talking about here? HOON: Well I will announce the precise numbers to Parliament in answer to a question tomorrow... HUMPHRYS: ..been announced already... HOON: ..as I go to the European Conference where each country will make known its own contribution. But can I emphasise that this is a planning progress, this is not a standing European Army, I've made it quite clear this is not a European Army. What we are seeking to do is to prepare our forces for the kind of role that they will require as they operate alongside the forces of our partners and allies, something that we have always done and something that we continue to need to be able to do. HUMPHRYS: Let me return to the question of numbers because your officials have been busy briefing the newspapers over the weekend, telling them how many, we have got precisely this twenty-four thousand fighting forces and all the rest of it. Why can't you tell us, in the way that the Germans have told their people, I mean you know how many it is, why can't you tell us? HOON: Well I will tell you, but I think it's right that I tell Parliament first and there is a parliamentary question tabled for answer tomorrow and I intend to answer it in the proper Parliamentary way. HUMPHRYS: Why didn't you tell your officials not to leak it then? HOON: This hasn't been leaked and I make it clear that whatever speculation appears in the newspapers over the weekend is mere speculation, I will confirm the figures at the appropriate time in an answer to Parliament. HUMPHRYS: Right, so long as you are going to confirm them, I'm going to operate in the assumption that they are more of less right, that's to say twenty-four thousand people, seventy-two combat aircraft, eighteen warships, a quarter of our Army and Air Force strength and half the Navy. Now, are they going to be full time serving military people or are they going to be TA, Territorial Army people? HOON: Well obviously, when we deploy, as we deploy in the Balkans, there is a mixture, predominately they are regular forces but we do have a number of full time reservists who do a marvellous job, I've seen for myself in Kosovo, the tremendous role that they can play, I'm confident that there will be a handful of TA, of full time reservists who will compliment this force but it will be no more than a handful. HUMPHRYS: Right, okay. And they will operate, and I use the word operate as opposed to fight or whatever, under some sort of European insignia, you told me there wouldn't be a European cap badge, won't be fighting under a European flag, but there will be some sort of European insignia involved here? HOON: Well that hasn't be confirmed yet, it's the kind of detailed discussion that we have to have. But certainly, there is not going to be a European Army, there is not going to be a European cap badge, British Forces will participate at the decision of the British Prime Minister, who will be answerable to Parliament. That is always the case when British Forces deploy and it will continue to be the case. HUMPHRYS: Exactly, if we are involved in the United Nations, they wear some sort of UN insignia to identify themselves, that's bound to be the same here isn't it? HOON: Well it's the kind of detailed issue that frankly has yet to be resolved. HUMPHYRS: Why are you so cautious about saying yes in answer to that, I mean it's perfectly clear isn't it? HOON: The reality is that those kinds of practical day to day decisions will come once a deployment is taken, it's a military matter in terms of identifying the forces. I don't believe at this stage that it is necessary to go into those kinds of details, when frankly there are much more important issues to resolve, the precise numbers that each country will contribute will be determined in the course of this week. HUMPHRYS: And a very important issue here is they will be required within sixty days. I mean the period of notice says sixty days, if we need to pull them together you've got sixty days to get them together. Now let's look at the problem that is involved in that because of course they will be tied up doing other things. The forces are already over-stretched, look at where they are all over the world, we cannot do that as things stand, can we, we cannot say: okay here is our contribution it will be ready in sixty days, can't do it. HOON: That's why it's so important that we approach this sensibly as a planning process in the way that we approach the same process within NATO and indeed within the United Nations. We've made it quite clear as every country makes clear, if there is a threat to Britain's vital national interest, that will always come first, which is why it is always for a British Prime Minister to decide when to deploy British Forces, but if there is not such threat it is important that we give our forces the opportunity of preparing, of planning, for this kind of deployment. Again, precisely in the way that we plan for a deployment under NATO or indeed under the United Nations. HUMPHRYS: Yeah, well, it might not be a threat to our vital national interest, might it? I mean we might have people in Sierra Leone, for instance, who might be needed for this force, so it's a question of who takes precedence, isn't it? HOON: Well, those are the kinds of decisions that we have to take at the time whenever a requirement arises, which is why it's so important to get across the fact that this is not a standing European army, we only have one set of forces and a British Prime Minister will have to take a decision at the right time... HUMPHRYS: ...no I've got that point. But I mean we're going into this exercise without fundamental, and I stress fundamental, issues resolved. I mean, things like whether we'd have to pull forces out of place 'A' in order to go to place 'B', I mean those are key, we can't say, yeah, we'll go along with it, we'll offer you our twenty-four-thousand or however many it turns out to be and we don't even know roughly how they're going to be used, I mean, that's preposterous isn't it. HOON: Well I simply don't accept that as part of the normal planning process that we undertake. As I say, as far as NATO and the UN is concerned and indeed let me make it quite clear, the only people who are actually against this are the right-wing Euro-sceptics and their occasional friends in the British press who keep going on about this as if there's some fundamental issue involved. The reality is, the last Conservative government supported this, the United States' administration supports it and our European partners support it, the only people who are against it are the right-wing fringe of the Conservative Party. HUMPHRYS: Well, I don't know whether you would describe the Chief of Joint Operations, for instance, as a member of the right-wing, perhaps he is, I don't know, I don't know the gentleman, but he has said, if the UK wish to go into a major operation, they could do that and I quote "but clearly back in the three services, that would lead to considerable pain" because the fact is, we are over-stretched at the moment. HOON: But those are the kinds of decisions that we always have to take before any kind of deployment. We have to make a judgement, a British Prime Minister would have to make a judgement as to what we were able to manage in practice at the time. That's not anything new.... HUMPHRYS: ...so it's not a commitment then... HOON: ...what is important is that we have the capability of deploying, alongside our partners and allies, when we need to, and frankly, this is a matter of common sense, and I'm sorry that so many newspapers, and the Conservative Euro-sceptics are determined to tell lies about this, determined to play politics, with our soldiers. HUMPHRYS: Well, I don't know whether that's what they're doing or whether they're just being sensibly cautious about this, because unless of course, unless of course what you're saying to me this morning, is that it isn't a commitment, after all, we're not making a commitment to Europe, we're saying that it might be, given that the wind's in the right direction, we haven't got the soldiers here, there and everywhere, it might be that we would be able to send somebody over there to fight with this European force wherever it might happen to be, or to operate with this European force wherever it might, or might not happen to be. But there's absolutely no commitment. I mean, if that's what you're saying, I'm quite sure that some of your critics would say, oh well alright, is that what you're saying? HOON: What I'm saying is that we are planning for getting a European force quickly, within sixty days, into a crisis where it's necessary. And that's precisely the lesson that we learned from Kosovo, we looked carefully at Kosovo, we came to the conclusion that it wasn't possible for European nations to participate to the extent that we wanted, and therefore we want to plan for that eventuality, but certainly, if there were a threat to Britain's vital national interest or if we were engaged in a way that made it impossible to commit those forces, then at the time, a British Prime Minister would be faced by taking that difficult decision - and I'm absolutely clear in my own mind that a British Prime Minister would put Britain's vital national interest first. HUMPHRYS: Yeah, well, ok, but we've dealt with the vital national interest question, I mean Sierre Leone, is probably not, East Timor's probably not, even Iraq is probably not, but my point to you is this - that we are told this is a commitment, you will be going to our European partners tomorrow and saying, this is Britain's commitment, but in truth it is not a commitment. HOON: But that's why it's vital to understand that this is a common-sense planning process. When you talk about a commitment, we are not committing a large-standing European army to wait for a crisis to the extent that we cannot use those forces for other things, those soldiers will be training, preparing, deploying, going about their normal business. But was is important, is if a crisis develops, we do have the ability to reorganise those forces and send them rapidly to that emerging crisis. That's something which everyone agrees on, the last Conservative government, the United States, our European partners, all recognise that this is an important quality that we require European forces to have and the only people who are against it are a handful of Euro extremists, currently unfortunately leading the Conservative Party. HUMPHRYS: Well, you keep saying that, but I'm struggling here to discover what is the real difference between you and them, because they're saying, as you say, in the past they've said - yes, of course, you know, if we've got the forces available and if we can help out, goodness knows, they've done it often enough Conservative governments of the past sent off our forces to fight with the United Nations or whatever it happens to be. It seems to me that you are saying precisely the same as them. Given that there's no other crisis anywhere in the world, given that our forces aren't needed anywhere else, given that they're sort of sitting around, you know, buffing their fingernails, or whatever it happens to be in Catterick or somewhere, we'll send them. However, if there's a problem, we won't send them. HOON: Well I assure you our forces are not sitting around... HUMPHRYS: ...I'm quite sure they're not HOON: ...amongst the busiest of any forces anywhere in the world... HUMPHRYS: ...precisely, my point precisely. HOON: Can I make it quite clear that this is a planning process which is why I can say with some confidence that certain elements of the Conservative Party, the Euro-sceptic element, are turning this into a political issue, because, they in the past have been involved in precisely this kind of planning process. We learned lessons from Kosovo, one of the lessons was, that European nations weren't sufficiently prepared, sufficiently equipped, to deal with that kind of emerging crisis sufficiently quickly, and what we're doing is learning those lessons and implementing the results in the planning as we prepare for a future crisis. It's common sense. And frankly, as I say, it is only the Euro-sceptics who are trying to turn this into a political issue, because anything that's involved with the European Union, they have a knee-jerk reaction against. HUMPHRYS: Well, let's have a look at what Lionel Jospin has said. I don't suppose even his worst enemy would describe him as a rabid right-wing Euro-sceptic, but what he says is that we're going to have to be equipped, have to be equipped, I quote, "with our own intelligence command control and logistical capabilities". Now that kind of thing costs very serious money. That sort of thing sounds much more than you have been describing this morning, and it's certainly going to cost. HOON: We are looking at the ways in which we can equip a force with the necessary intelligence and other functions. It's obvious we are not going to deploy British soldiers as part of a European force unless they have access to appropriate intelligence, which is why we have emphasised so strongly the importance of resorting to NATO planning procedures. We don't want to see any kind of duplication, and again that is precisely what we have agreed. There is an absolute consistency between what we're proposing in an EU context and what already happens and will continue to happen in a NATO context. HUMPHRYS: I'm deeply puzzled by this absolute consistency then, because we've got William Cohen the American Defence Secretary talking about it would be a highly ineffective seriously wasteful of resources if NATO and the European Union had their own commanding control structures, and yet Lionel Jospin's saying precisely that - we must have them. HOON: Well, Bill Cohen came to Birmingham very recently and said how pleased he was with the progress that was being made and indeed most recently the US administration have said how delighted they are with the text that have been worked on, so there is absolutely no division of opinion in NATO or elsewhere. This is a good thing. The only ones who want to turn this into a political football are the Euro-sceptics and the Tory party. HUMPHRYS: Well, but we'd also have this extra cost of moving these people around. Rapid deployment means precisely that doesn't it. We'd have to have lots of aeroplanes and all the rest of it to move these things around. In the past NATO have done it for us. The Americans have done it for us within NATO, we'd have to have our own wouldn't we? HOON: Well, that is why we have recognised the importance not only as part of our contribution to our European force but in the light of Britain's own needs and requirements which is why this government has invested so substantially in extra lift as far as aircraft are concerned, in extra lift as far as ships are concerned. We recognise the importance of getting British forces into a crisis quickly, that's why this government has provided the necessary investment. HUMPHRYS: But not enough. I mean George Robertson, Lord Robertson, I beg his pardon as he is now, who runs NATO, if the Europeans are going to rise to the challenge of the post cold-war world then more money will have to be invested. Now, when he says more money will have to be invested he means precisely that, but in Europe less money is being invested, not more. Yes, we have increased our defence spending but only in inflationary terms, not in real terms. HOON: No, that's not right I'm afraid John. We've actually increased our defence spending in real terms as well as to compensate for inflation, so there is a substantial amount of extra money available to defence, planned, allowed for, over the next three-year period, so it is real increases in real money available for investment in defence. But equally we also will want to encourage our European partners to follow our example, but what's key to this and why this is so important as a sensible, common-sense planning process, is that actually those other countries reorganise their forces, actually make sure that their forces are equipped to do the kind of rapid deployment that we believe is absolutely the right way forward in a much more complex and challenging modern world. HUMPHRYS: But George Robertson said, static defence budgets, and I emphasis budgets, plural here, will make a mockery of the ambition to tackle trouble spots before they become a crisis. Well, Europe's defence budgets across the board are not just static, they're going to fall by six per cent in real terms by next year. HOON: Well, I agree with Lord Robertson. We have to ensure that other countries are able to make this extra contribution, either in financial terms but more importantly in the way in which they spend their existing defence budget. There is a change, the change is from the kind of static forces that existed to deal with a threat from the Soviet Union, to the more complex world that we now have to deal with, and that's precisely why this government through its strategic defence review which of course was led very successfully by Lord Robertson have reorganised our forces to meet these kinds of new challenges, it's important that other countries now do the same. HUMPHRYS: Isn't the truth that we never really wanted to go down this road. I mean I can understand your reticence in the early parts of this discussion, because we learn from the Mail on Sunday this morning, they've got another leak of cabinet minutes, and George Robertson, when he was Secretary of State for Defence, in your job, he said: we can stop things we don't want such as a European Defence policy. We didn't want to do it then, we don't really want to do it now, but we're having to do it because we want to keep our friends in Europe, and since we can't join the European monetary union, then let's do this. HOON: Well, the only thing I recognise in that story as being accurate is the headline, and there are no plans for a European army, therefore there is no U-turn. To that extent the Mail on Sunday did get something right. HUMPHRYS: Ah, but we are going to have a European Union defence policy aren't we. That is what it is all about. HOON: But that was in the Maastricht Treaty. It was agreed by John Major's government. He actually promoted that in the House of Commons, it's set out, it's not anything that until the present Euro-sceptic leadership of the Conservative party came to power, was a political issue, which is why I've consistently complained to you about the Euro-sceptics turning this issue, our armed forces, their training, the planning, into a political football. That's wrong, it's never happened before, and it shouldn't happen again. HUMPHRYS: Geoff Hoon, thanks very much indeed. HUMPHRYS: And that's it for this week. Don't forget those of you on the Internet can keep up-to-date with all the interviews and the rest of the programme on our Web-site. I'll be back at the same time next week with David Blunkett. Until then, good afternoon. 14 FoLdEd
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.