BBC On The Record - Broadcast: 11.02.01



==================================================================================== 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: 11.02.01 ==================================================================================== JOHN HUMPHRYS: Good afternoon. Can the Government put the Mandelson affair behind it - or is there more trouble in store whatever the inquiry finds? We'll be reporting. Can we believe the Government when it says our food is safe? I'll be talking to the Agriculture Minister Nick Brown. And we'll be looking at our secondary schools... how will the Tories make them better? That's after the news read by Matthew Amroliwala. NEWS HUMPHRYS: The nightmare of mad cow disease is said to be behind us... but can we be sure of that? There are new rules on party funding. But the Government's advisor on standards says Ministers haven't done enough to stop people thinking politics is sleazy? LORD NEILL: "We are disappointed that they haven't gone all the way that we want to go." HUMPHRYS: And the Government has plans to improve our secondary schools... what have the Tories got to offer? But first the continuing saga of Peter Mandelson. The Government wants to close the book and Ministers keep saying: "Let's wait to see what the Hammond Inquiry comes up with." But Mr. Mandelson has other ideas and he's managed to keep his face and his fight in the papers. How much support does he have within the ranks of the Labour Party and how much damage might he be capable yet of doing? Iain Watson reports. IAIN WATSON: When Peter Mandelson was summoned to the Prime Minister's inner sanctum eighteen days ago his opponents assumed he was heading for political oblivion. But this spectre of spin continues to haunt Downing Street and further horrors are on the way - for the first time his political supporters have stepped from the shadows and are telling Tony Blair it's in his own interests not shut out his old ally forever. LORD SAWYER: Give him any portfolio, give him any case to make, and Peter, if he gets behind it, will make it in a, in a manner which is hard to equal in the Parliamentary Labour Party, now from my point of view, in Labour Party politics, this is a big asset, and it's too big to squander. LORNA FITZSIMONS MP: It is very frightening that people are actually starting to think that because the media have pre-judged you, because there is a lynch mob, therefore you're guilty. And we don't allow that either in some of the most severe instances in the criminal justice system, so why are we doing it in politics? WATSON: Just as Peter Mandelson was being dispatched from the cabinet for a second time, Sir Anthony Hammond - a former treasury solicitor who also served at the Home Office - was called in to set up an Inquiry; in the old days, that would have been enough to kill off an inconvenient story. ACTUALITY FROM THE TV SERIES - YES MINISTER JIM: Well at least an Inquiry gives us a little time. HUMPHREY: So does a time bomb. JIM: Haven't you got a disposal squad? HUMPHREY: Disposal squad? JIM: Couldn't we get the independent inquiry to exonerate the department? HUMPHREY: Do you mean rig it? JIM: No, no, no, no, no, no, well, yes. WATSON: So Whitehall inquiries were traditionally designed to conceal more than they revealed - to smooth things over, not shake them up. Whatever New Labour's detractors say about the lack of radicalism, when it comes to inquiries, they've certainly broken the mould. The Hammond inquiry could actually cause more problems than it solves - and heighten, not diminish, party infighting, ahead of a general election. Now Labour may want to talk about education and crime, but when this Inquiry reports, the future of one man will continue to dominate the debate. PHIL WOOLAS MP: We don't know obviously what the inquiry will say - it's possible it will exonerate Peter Mandelson, and if that is the case, I can't see any reason why, after the general election, some time in the future, that he couldn't play a role in government. GORDON PRENTICE MP: I don't think Parliamentary Labour Party would swallow it, I don't think the wider Labour Party would welcome it, no sane person would suggest for one moment that there was any prospect of Peter Mandelson returning to front rank politics in the second term, if we get it, of a Labour Government. WATSON: The Inquiry under Sir Anthony Hammond is due to report to ministers at the end of the month and should throw light on why, or whether Peter Mandelson was right to resign. What's not in doubt is that the Home Office were contacted - either by Peter Mandelson or his officials - when he was minister for the millennium dome, to ask about rules on British citizenship - following a query by the Hinduja brothers. And they just happened to have pledged around a million pounds in sponsorship for the Greenwich folly. What is at issue is whether Peter Mandelson telephoned the relevant Home Office Minister, Mike O'Brien, personally, and then exercised undue pressure to speed up a citizenship application. If Hammond concludes that Peter Mandelson acted dishonourably, then the punishment won't just be personal but political. ANDREW LANSLEY MP: I think that creates a backdrop, alongside other things, in which people think increasingly ill of this government, where they don't trust what they say, where they feel that they came into office claiming they'd uphold the highest standards in public life and they have completely failed to deliver on that. WATSON: But Peter Mandelson is saying through friends that he was browbeaten from office before the facts were established. A memo from his most recent set of officials, at the Northern Ireland office, and leaked last week, threw doubts on the Home Office's account that Peter Mandelson had personally contacted the Immigration Minister Mike O'Brien. So if there's no proof he even phoned the relevant minister, never mind sought to influence him, presumably complete exoneration isn't out of the question. WOOLAS; If it says he acted honourably, and that mistakes were made but not intentionally, then I can't see why after the general election, there shouldn't be no role for him in politics if that is what the inquiry does show. PRENTICE: In the presence of colleagues, I asked Mike and I said to him, "do you have a clear recollection of having this telephone conversation with Peter Mandelson?" and he looked me in the eye and he said "yes." So who do we believe? Mike O'Brien, a well respected Home Office Minister, a solicitor, or Peter Mandelson? WATSON: Well, if Sir Anthony Hammond chooses the latter, then Peter Mandelson's reputation could be restored. But this may have the opposite effect on the Prime Minister if he's seen to have acted as judge and jury before hearing the evidence. LORD SAWYER: As far as I can read, I mean Peter did suggest that the Inquiry should be carried out first, but you know you can see it from both sides here; you can see the kind of panic that would arise in Number Ten at the thought of another kind of possible misdemeanour from Peter - and oh dear me, you know this is the man who resigned once, we reinstated him, and now we're in trouble again. So there would I think be an element of panic about Peter, let's say potentially, being in trouble again. NORMAN BAKER MP: I don't think Mr. Mandelson will be exonerated, its difficult to see how that can occur. If he is exonerated, then that clearly leaves the judgement in the balance as to the role of Alistair Campbell and indeed the Prime Minister who shoved him out of office so quickly on that particular Wednesday morning. WATSON: While Labour sources expect Peter Mandelson to be cleared of influencing the Hindujas citizenship application, they hope the verdict on the telephone call will look like a fudge. Peter Mandelson says he can't recall telephoning the Home Office personally about any possible citizenship application from S. P. Hinduja. But senior Labour sources are confident that Sir Anthony Hammond's inquiry will establish that a telephone call did indeed take place. But ministers don't expect Peter Mandelson to be branded a liar - instead, less damning language could be deployed - perhaps a reference to 'an inadequate recollection of events' or maybe a mention of 'flawed judgment' so not so much a whitewash - more of a grey area. ACTUALITY FROM THE TV SERIES YES MINISTER HUMPHREY It is characteristic of all committee discussions and decisions, that every member has a vivid recollection of them and that every member's recollection of them differs violently from every other member's recollection. Consequently we accept the convention that the official decisions are those and only those which have been officially recorded in the minutes by the officials. FITZSIMONS: The bottom line is the reason he resigned was Mike O'Brien said he made the phone call and he couldn't recall making the phone call. You know that is so...if you actually...history will look on this as pathetic. The bottom line is the man resigned, one of the chief architects of New Labour resigned over whether he could remember making a phone call just saying I'm inquiring about policy. I mean let's get this into context. LANSLEY: I don't actually think it was so much a matter of whether Peter Mandelson picked up a telephone, the point was that he was engaged in raising an issue with another government department on behalf of somebody from whom he was soliciting sponsorship for the Dome; that was really what it was all about and that breached the rules as far as I'm concerned WATSON: So some people would find a fudge far from satisfactory - but would it be enough to appease Peter Mandelson? Although he's said he would accept the inquiry's findings, his recent off the record briefings seem to have convinced Downing Street of his volatility - any suggestion he's a liar could detonate a political explosion LORD SAWYER: To say that he made a mistake, or he was indiscreet, or he perhaps shouldn't have done something that he did, I think he would probably say: well look, fair enough, and he would apologise for that. But I think that any implication that he purposely set out to tell a lie in order to mislead any, either his colleagues, or the Prime Minister, or civil servants, or anybody else, I think he would find unacceptable. BAKER: It's quite clear that Mr Mandelson will not let this matter rest, and I think that's bad news for Tony Blair and the government, they clearly want him to go quietly, he's not going to do so. PRENTICE: If the media becomes fixated with Peter Mandelson in the run-up to a General Election and that will obscure the real issues, that could do us real damage and I don't pretend that it wouldn't, and I would just hope that Peter Mandelson puts a lid on it WATSON: The Prime Minister has to handle Peter Mandelson with care. Tony Blair has to make it clear that if Sir Anthony Hammond stops short of calling Peter Mandelson a liar, then the door won't be closed forever on his former Cabinet colleague. The hope is that this sort of incentive can keep Peter sweet through a General Election campaign - although any ambiguity over his future status is likely to be exploited gleefully by the opposition parties. But even within Labour's ranks, this could prove controversial. FITZSIMONS: You can't go on persecuting him because you believe somehow he's got a flawed judgement or whatever and if he is innocent then he should be treated as such and be as eligible as anybody for promotion. PRENTICE: I think Peter Mandelson is in some sense in a state of denial, he cannot quite accept the fact that his career has come to an abrupt end, I don't think there's any question at all of rehabilitation RECORDING OF "YES MINISTER": JIM: "But Humphrey, if these revelations are true..." HUMPHREY: "Ah exactly, Minister, IF... You could for instance have discussed the nature of truth. JIM: "The Committee isn't the least bit interested in the nature of truth. They're all MPs!" WATSON: Whatever the results of the inquiry, Peter Mandelson's future will be decided by predominantly political factors. Some Blairites say he's needed to strengthen the Prime Minister's hand against the overweening influence of the Chancellor, Gordon Brown; while his opponents believe that, with the modernising gimmicks behind it, the party can return to the task of appealing to its near-catatonic core vote now that Peter Mandelson has gone PRENTICE: I think even before this happened there was a kind of recalibration taking place, that Mandelson's idea of the project of course was to get really close to the Liberal Democrats, coalition, snuggling up close to them, a kind of centrism which was dressed up in terms of modernity. Now I'd say there's been a kind of stepping back from that and the government now four years into its term is looking at addressing the things that really matter to people in the industrial heartlands, just the whole raft of policies that Peter Mandelson never concerned himself with. WOOLAS: I think what worries me mostly about the affairs surrounding the Peter Mandelson resignation, is the interpretation that somehow or other because Peter Mandelson had gone, that the English public had all of a sudden become Bevanite Socialists. Labour has its majority and has the mandate of the British people because we are the New Labour Party, and if Peter Mandelson's resignation creates a vacuum that will cause us problems in the future and it's very important that we reassert our New Labour credentials WATSON: Most Labour Party members will be delighted that Tony Blair has rid himself of the man they see as his Rasputin. But some of those who played a key role in past General Elections fear that Labour's campaign machine this time round will be less effective as a result. SAWYER: It was very disappointing because he is such an important person to the Labour Party; he's particularly important at Millbank and in a campaign centre - his brain and his ability to get things right inside the Party is probably irreplaceable. I guess most people would say he couldn't come back into government but as you know you should never say never in politics WATSON: The first reaction in Labour's ranks to Peter Mandelson's departure was a near collective sigh of relief; but some won't be breathing quite so easily now. Whatever the conclusions of the Hammond inquiry, when it reports just weeks before an expected General Election - Downing Street may find that the man who was once one of Labour's greatest assets has now become one of its biggest liabilities. HUMPHRYS: Iain Watson reporting there. Later in the programme we're going to be looking at whether more needs to be done to clean up our politics. JOHN HUMPHRYS: But first MPs are going to discuss food this week. How safe is it? Have we really put the tragedy of mad cow disease behind us? Can we trust politicians and civil servants to let us know if there are problems in future and to put the interests of food safety above everything else? Is there really a new culture of openness in Whitehall? On Friday the Agriculture Minister Nick Brown gave the government's response to the inquiry into BSE but he left many of those questions unanswered. Mr. Brown is in our Newcastle studio now. Good afternoon Mr. Brown. NICK BROWN: Good afternoon John. HUMPHRYS: You're going to be using, as I understand it, the BSE and the way the Tories handled it, to attack them during the election campaign when it arrives, but you have a problem here don't you, because you don't seem to think anybody is to blame, that is to say, nobody is being punished for it, therefore we can assume can we not, that nobody is to blame. Why isn't anybody being punished? It's a question an awful lot of people want answered. BROWN: Look, firstly I think the electorate made their mind up on the Conservatives' handling of the BSE tragedy at the last general election, the nineteen-ninety-seven general election. The whole purpose of the government's interim response to Phillips is to look forward, not to look backwards, and to make sure we put arrangements in place so that something like this never happens again, or at least we've taken every step we possibly can to avoid it. HUMPHRYS: But I think if I were a farmer whose livelihood had been destroyed, or even more, much more, if I were the parent of a child who had died, I would say fine, that's a perfectly good politician's answer, but I want somebody's neck on the block for this, I want somebody to be punished for it, it's a completely human response isn't it? BROWN: It is a completely human response. Look I don't intend my answer as a politician's answer, what the government is doing is responding to the Phillips Enquiry, and Lord Phillips was very clear on this question of allocating blame. He found institutional failings which went right to the heart of government and he found political failings as well, which is an indictment of the previous government and the Conservative Party, but what he said on the question of allocating individual blame was something like this. He said anyone who has come to our Report looking to allocate blame will go away disappointed. That was his finding, that's the finding to which the government has to respond. HUMPHRYS: But why, why do you have to... BROWN: ...now let me finish the point. There are five serving civil servants who are criticised in Lord Phillips Report, we've asked a Civil Service Commissioner to examine whether those criticisms are serious enough to warrant disciplinary action, the Commissioner has examined the case, has come back to permanent secretaries and said that the answer to that is no. And given what Lord Phillips has said, it's not surprising that the answer, when it comes to allocating individual blame, is as it is. HUMPHRYS: But somebody must have been responsible. BROWN: Well, you know, I think it is very easy to say that. That is not the findings of the Phillips Report and the government has a responsibility to find, to respond to what Lord Phillips actually said, rather than what might have been more politically convenient to have had him said, if you are looking at it from a narrow sectarian party point of view. HUMPHRYS: Well let's try not to do that. BROWN: Let me just say, I think it is wrong to look at it from a party political point of view. This is an issue of overwhelming importance, it goes to the heart of the way in which we are government, it runs to structures of government and it is there that the response should come. To turn the issue into a fight between Conservatives and Labour along party political lines is a mistake. HUMPHRYS: Oh no, I certainly wasn't trying to do that, quite the opposite... BOTH SPEAKING TOGETHER HUMPHRYS: Indeed, and it might well have been that it was civil servants whose necks should be on block let alone -- politicians get punished at the polling booth apart from anything else... BROWN: ...I think that's exactly right... HUMPHRYS: ...yes, but civil servants don't, they're still in their jobs. BROWN: You know, all I can do is to repeat what I've just said. Phillips looked at this question very thoroughly, his findings are very clear, just in case there was any ambiguity about it, we asked a civil service commissioner to examine the position regarding the five serving civil servants and the outcome is as it is. HUMPHRYS: Alright. The one thing that Phillips was very, very clear about indeed, was that there had been a culture of secrecy and that we didn't know enough about what was going on when it was happening, that's the important point, when it was happening. The problem you face now is that, the problem that we face now is we still cannot be sure that, if there were, God forbid, to be another BSE or something like it, we would for certain know about what was going on, because of course, we are going to have a Freedom of Information Act, but what that means, it's been so weakened, that ministers do not have to disclose the advice that they get, so next time around we may be none the wiser. BROWN: No, advice to ministers is one thing, the scientific advice on which ministers are being advised, on which we are making our decisions, is quite another. And John I give you this pledge, the scientific advice that informs the ministerial decisions that I make is all going to go into the public domain. Moreover, the government has set up now the Foods Standards Agency, which meets in public to formulate its advice to ministers, and they put that advice in the public domain. These are very powerful safeguards. HUMPHRYS: Well, alright, let's assume that there is a problem. Might be something as serious as a BSE, it might be something much less serious. But there is a problem. And a middle ranking official, may or may not be scientist, comes along to perhaps a senior official, perhaps to a minister himself, or herself, and says, look, there's a problem here. I'm worried about this. Do we, the public, get to know about that, at that time? BROWN: Well, I assume the meetings that I have as minister, are going to end up in the public domain, unless there is something commercially confidential, or some other very good reason why they should not. I intend to put all the scientific evidence on which ministerial decisions are based, into the public domain. We publish a great deal of information already, on the Ministry's internet site, and as you know, I bring journalists in, specialist journalists, from time to time, to brief them on some of the background to the more complicated things that I end up having to deal with. HUMPHRYS: So, but it's more than just the scientific information obviously, because, I mean, we are not necessarily, probably certainly not capable of divining of what that might or might not mean, you'd have to be a scientist to do that. Are you saying that if one of your officials comes along to you and says, look minister, I've looked at this, and I've got some worries about it, here is what I think you ought to do, you will tell us that? Without any doubt at all? BROWN: If there is something to worry about. Obviously the first question I would ask, and any minister would ask, is why, what is the basis for the concern, and if that basis is founded on a scientific study or some other contestable piece of technical information then the information itself goes into the public domain. HUMPHRYS: So, we could go along, any journalist could come along to the Ministry of Agriculture, Fisheries and Food at any time in the future, and say: Look, tell us about what has been going on in relation to x, y or z, whatever it may be, and we would have access to the papers, we would have access to the advice which you had been given. We'd know the whole picture. BROWN: As far as the scientific advice that informs ministerial decision-making goes, you don't have to come along to the Ministry. You can access it all on the Ministry's internet site. HUMPHRYS: I was talking about more than. I was talking about more than just the scientific advice. BROWN: When it comes to the advice that informs decisions over whether - take a controversial issue, whether French beef should be imported into the United Kingdom, but that's a legal question rather than a scientific one, although the food safety advice comes from the Foods Standards Agency, and that is in the public domain. The legal advice is in the House of Commons library, so that you can see it there, every parliamentarian can see it there as well, in other words it's in the public domain. HUMPHRYS: But if one of your ministers came along and said: It's a tricky area this minister, you know, it could be very politically damaging for you, we think you ought to do this that, or the other, would you tell us about that, and could we then come along. I mean could I now come along and say, BSE in milk for instance, one example, and I know there is stuff on the Internet as you rightly say, scientific stuff on the Internet, but could we come along and say: Let's have everything on that since the Election, since you've been in power. BROWN: John, I'm quite happy for you to have absolutely every bit of information we have about whether or not BSE can be found in milk. The advice to me is that it cannot, but we're still looking, but if you want to go through the research that's been carried out so far I'm quite happy to have you talked through the Ministry's research programme by the people who've undertaken it. There are two choices for ministers on this question of secrecy. Either you do what the last government did, which is to keep things - play the cards very close to your chest - keep things secret in order to prevent there being a panic when the science isn't certain - that's the approach the Conservative Party took. Phillips says they were wrong to do that, and even if the science isn't certain, governments should trust the public and I strongly agree with that. It is better to say there is a debate around this area, we don't know for sure, but this is what we know so far, and if the debate seems to be moving in a particular direction as it clearly did with BSE, remember the discovery of the TSEs in cats, the discovery that it was possible to get the condition into a pig by injecting it in laboratory conditions into the animals' brains; all of these were clear signposts that it's possible for the condition in cattle to jump the species barrier. Now that should have gone into the public domain and it should have alerted ministers to the need for powerful protection measures. HUMPHRYS: But what if your official says to you: Look, this could - we don't think there's a great deal in it actually, but there's enough in it for some of our scientists to be a bit worried about it. However if this gets out it really could rock public confidence in lamb or milk or whatever it happens to be, would you tell us that? BROWN: Well, your example about sheep is actually quite a good one. There is a theoretical possibility that BSE was present in sheep at least at their period of greatest infectivity in the late 1980s, early 1990s, although of course we haven't found it there, and there are no mad sheep. There are sheep suffering from scrapie, and as you know the theory is that scrapie could possibly mask the condition, the BSE condition in sheep. We have said what the theoretical possibility is, we're conducting continuing research into it, both into whether it was present historically and whether we can find it now. So far we haven't but we continue to search, but moreover we're devising a contingency plan if anything is ever found and all of that work is being put in the public domain. Moreover, I have on an extreme precautionary principle devised a scrapie eradication programme which is to genotype the sheep so that we eliminate scrapie, and although scrapie is said to be no harm to humans, and I'm sure that that's right I want to eliminate it anyway just in case on the very extreme possibility that it masks BSE. Now a previous Conservative government would not have wanted to discuss that in public. I'm quite confident that in spelling out the nature of the risk and what the government's doing about it, that will act as a reassurance to the public rather than a source for food scare stories. HUMPHRYS: If you were entirely serious about this would you not follow the German approach., They now of course have a new Agriculture Minister, and their slogan, if that's what it is, their policy I suppose, is class not mass. In other words we're much more concerned about the quality of the food we produce than the quantity of the food we produce. You are still, because of course you still support intensive agriculture, with all the potential risks, and I emphasise the word potential that that involves, you're still more concerned with mass than class aren't you? BROWN: John, I am passionately committed, you and I have discussed this before, to the reform of the Common Agricultural Policy and to shift that policy away from the production supports which of course, do as you say, which underpin mass production rather than look at the environmental issues or indeed get farm businesses closer to the market place. And I am strongly committed to the reform process... HUMPHRYS: Well give us a target then like the Germans have.. BROWN: John, let me finish. I've got the disadvantage of hearing you down the line from Newcastle... HUMPHRYS: Yeah, of course I apologise.. BROWN: I've got the disadvantage of having to work with the Common Agricultural Policy as I found it. I believe there should be a Common Policy across the European Union but not as currently structured and you and I don't disagree on these matters as much as it may seem. HUMPHRYS: Well it's my job as you know to ask the questions. What..the reason that I raised the Germans and I'm sorry if you couldn't hear me down the line there. Is that they have actually set a target. They have said twenty per cent of organic food, effectively organic food by the year 2010. We don't have that sort of target do we? BROWN: No, but I was discussing the possibility of having an action plan with the Soil Association earlier on this week. I'm not going to set targets, it's not for Government to tell people which type of food they should eat, the government's responsibility is to ensure that it is safe and that the trading practices within the food industry are proper and as they should be. However, the government is committed to seeing organic farming flourish and we're doing it for three reasons: it's good for the environment; it's what consumers want and it's an economic way forward for farmers. The last Conservative government was spending half a million pounds a year on this when they left office, we're spending a hundred and forty million pounds over the next seven years and what's more, we're looking at whether we can devise an on-goers scheme as well as a conversion scheme for the future. So we are keen on supporting organic farming but not telling people that they have to eat organic food or setting artificial targets. HUMPHRYS: Giving them a choice is not telling them they have to eat and a hundred and forty divided by seven isn't actually all that much is it. The short answer is you're not prepared to go as far as the German government has gone. BROWN: We certainly go further than the German government currently goes although you are right that the arrival of the new minister means a change in policy. It is not possible I think to support organic farming alone without looking at the structure of the Common Agricultural Policy and supporting more radical reform of that. I believe that that should be done and I hope that German policy evolves in a similar direction. HUMPHRYS: Nick Brown, thanks very much indeed. HUMPHRYS: This week new rules on how we pay for our political parties come into force. They include a cap on how much the parties can spend on elections and they force the parties to identify donors who give them more than �5,000. They're an improvement on what's gone before but are they enough? And have the rules already been overtaken by the events of recent weeks? Paul Wilenius has been taking a look at the world of politics and big money. PAUL WILENIUS: Everyone loves the high life.But to taste it, takes money. The rich have lots of it, which can help them get closer to powerful politicians. Yet some observers know the dangers of mixing the worlds of politics and wealth. Ministerial links with the Indian Hinduja Brothers brought down Peter Mandelson and other heads may roll. So On The Record decided to take a look at the way parties and Ministers rub up against the wealthy and set out for one of the biggest political fundraising balls of the year. When Tony Blair came to power, he promised to sweep away Tory sleaze and bring in new cleaner politics. But it's taken four years to bring in new laws to cap election spending and to open up political donations to public scrutiny. And there are fears this may not be enough to achieve his aim of making politics purer than pure. Most people were shocked by the sleaze of the cash-for-questions affairs, which tarnished the Tories and even Parliament itself. When spending on the last election accelerated to a record �58 million, Tony Blair asked the Committee on Standards in Public Life to try to regain public confidence in politics and halt the party spending arms race. LORD NEILL: We had quite a lot of evidence from witnesses who thought they'd been some extravagance; it was overspending, there were posters going up that in retrospect people thought might have been better if the money hadn't been spent that way - and that was thought to be excessive. MIKE O'BREIN: I think there was serious public concern about the level of funding and the costs of an election and therefore people wanted to see some cap on the overall expenditure of political parties. WILENIUS: The Electoral Commission will be set up under new laws which will come into force this week . Its job will be to see that the Tories or other parties spend no more than �20 million on an election campaign over a full year. This will be a �15 million limit, if Labour Party leaders decide, as expected, to go for an election in May this year. But party supporters won't take this limit lying down. Big unions and wealthy businessmen can lavish almost a million pounds each on their own campaigns, avoiding the overall spending cut. SAM YOUNGER: It does leave grey areas and areas for interpretation and the staff of the Commission have already been in very detailed discussions with the political parties themselves to try to get some consistency into the guidelines as to what constitutes campaign expenditure and what doesn't and how things are going to be calculated. I think we're all aware we're not going to get it to work absolutely perfectly and consistently first time around. LORD RENNARD: There is a real danger I think that some organisations may get round the limits, for example Euro-sceptic organisations with the support of a few extremely rich people could perhaps club together to promote their campaign in support of the Conservative Party. It's quite possible that the trade unions, in addition to giving money directly to the Labour Party, could use their financial strength to promote the cause of the Labour Party in other ways and they could of course co-operate together to do that. WILENIUS: Because of the fear that some party supporters will be able to get around the limit, there's mounting pressure to make sure the �20 million overall cap on election spending is trimmed even further. TONY WRIGHT MP: I think I would probably shave about five million off the figure that we are now talking about. I think that would just help. I mean I can see why the parties don't want to do it because you know they're into the business of fighting elections at that sort of level. But it will help on all these issues about how you'd manage party funding I think if you took the pressure of the total spend. LORD NEILL: My view is that it should be looked at to see whether people really need as much as the twenty - or it's going to be fifteen million I think for this forthcoming election - is it too much?; if it's over the top, cut it down. WILENIUS: From the very beginning Labour's hopes of keeping politics clean ran into trouble. There was a string of scandals involving Ministers and wealthy businessmen. PETER KILFOYLE MP: I just think that Ministers are only people and most people would find that kind of attention seductive. Ministers of course, some ministers did find it extremely seductive. That's why, before the election, the Labour Party and opposition tried to run courses to forewarn us about the dangers. There's nothing new in these. But of course given the long time that we spent in opposition, all of the best will and the best causes in the world was not going to stop one or two of my former colleagues from becoming seduced by the trappings of power. WILENIUS: So the charms of big business have caused problems for Tony Blair's government. From Formula One to the Dome it has tarnished the new Labour brand. Some senior Labour figures feel the only safe choice is for the taxpayer to fund political parties, as this will protect them from charges of corruption. But for Tony Blair throwing state funding into the mix is too radical, as he feels the voters would just not swallow it. So instead party coffers will still need filling up from the pockets of rich donors, unions and pressure groups. PETER KILFOYLE: I think a very good case can be put to the people of this country that it's in their interests to take out these rather influential and unaccountable people by having some form of state funding and it can be elective state funding, in the sense that, there's no reason why when you cast your vote, you can have a box which says, you know, "Do you want - I dunno - a pound of your tax over a year to go to political funding? Yes or No." MIKE O'BRIEN: The government's view is certainly that there is not the support for State Funding, and that we do not, as a government favour it. The Neil Committee was against it, but in the long term future let's see how this debate develops. WILENIUS: Both major political parties have clearly not taken a shine to state funding, as they fear it could be unpopular with the voters. But a growing number of Labour MPs and smaller parties feel there could be another solution to impose strict limits on the size of donations. WRIGHT: The bit that we haven't yet done and the Neill Committee wouldn't recommend this, but I think we ought to do it, is to have a cap on individual donors, I would say a figure of about a hundred thousand pounds. WILENIUS: Transparency is the aim of the new law, which will make public the name and size of any donation over five-thousand pounds. But there is growing unease about the sheer size of the recent gifts to the big parties. The Tories got the dazzling offer of five-million pounds. This followed three eye-catching donations of two-million pounds each to Labour. They're the sort of sums party leaders will find it hard to walk away from. LORD NEILL: I think the problem is big donors means big influence. We had a recommendation, which the government did not follow up, that there should be tax relief for small donations up to five-hundred pounds - we thought that was an excellent plan to widen the contribution to a much bigger field. That's been rejected. O'BRIEN: Some have said that, that sunlight is the best disinfectant, in order to clean up the sleaze in British politics, what we need to ensure is that we have openness about the way in which political parties are funded. There is however some public concern that particular individuals might seek to influence political parties. We'll have to see how that debate develops over the coming months. The Electoral Commission can obviously revisit it. WILENIUS: So even Ministers acknowledge the dangers of relying on big cash gifts, and that they might eventually have to do something about it. But cutting the size of donations may not be enough to keep Labour looking neat and clean. Some influential Labour MPs want much greater openness about meetings between Ministers and other organisations. KILFOYLE: Well what's fascinating I think is that you do end up in a situation where you meet various business people. I don't have a problem with that in itself, but it's who you meet, and how they are determined as requiring access as opposed to other people who don't. You suspect that there are networks that are going on, which you are only faintly familiar. I always thought that that was rather unhealthy frankly, mainly because these people, despite all of the rules, despite all of the codes of conduct, they had interests very often which were inimical to those of the government. WILENIUS; Now there are moves to tidy up the rules on Ministerial contacts. The Commons Committee on Public Administration is to call for the creation of a public register, to pin down Ministers' formal and even informal links with outside interests. WRIGHT: There should be a register kept inside departments of when ministers have contact with lobbyists, and thinking particularly here of business lobbyists, so that when questions are asked there is a lobby, there is a register that you can turn to. I mean anything legitimately counts as a contact that could be construed as any kind of lobbying. LORD NEILL: I think there's got to be a great deal of awareness now that private side of business, and the private field is mixing very much with government on joint enterprises. And what needs to be known is that this is taking place; what contribution the private side is making; what they're getting out of it. And I think transparency is absolutely critical here. We're talking about straight sponsorship, my Committee is very much against any idea of the sponsor getting a kickback, or some reward, for doing it. We really don't think it should be a sort of contract, I scratch your back and you scratch mine, shouldn't be like that. WILENIUS: Raising money for political parties has always been a serious business. And at this glittering event, speculative investment in long term political futures is the name of the game. In these glamorous and relaxed surroundings a thousand well heeled guests can have fun mingling with the political elite in the Conservative Party. This is the Tory Party's Annual Winter Ball, the place where the worlds of politics and business collide. Even though I have been preparing all day, I'm still not allowed in. Like many similar Labour events, it is strictly private and the media is banned. For politicians wanting to promote a cleaner image, this is where the real danger lies. Although they normally thrive on photo-calls and soundbites, on fundraising and links with outside interests they go camera shy. And if this persists, then the major parties will still find it hard to avoid allegations of sleaze. The biggest problem for new Labour is that voters expected so much. Ministers hope that the allegations that they are just as sleazy as the Tories, won't have a big impact at the next election. But there are fears that if they can't shake off this image, they will eventually pay a high political price. WRIGHT: I think there is a deep cynicism about politics and politicians, I think there is a widespread belief that collectively they are up to no good. That they will get their nose in the trough if they are given half the chance. The only real way to answer it though, is to make sure there is such transparency and such openness, that these accusations cannot be levelled and that if they are levelled people have protection against them. NEILL: We are disappointed that they haven't gone all the way that we want to go, we would like to have a public register so that you could find out who was lobbying to achieve what. The government I don't think wants such a register to be publicly available, maybe they'll rethink it, but at the moment we haven't persuaded them, and that, I find disappointing. WILENIUS: For politicians the trappings of power depend on popularity. So if they fail to shake off the impression of sleaze, the time will come when the humble voters will take it all away. HUMPHRYS: Paul Wilenius coming down to earth there. JOHN HUMPHRYS: Tomorrow the government will publish its plans for the future of secondary education in England and Wales. But as ever we know what's going to be said because the Education Secretary David Blunkett has already told us. One of the immediate problems is how to recruit more secondary school teachers, but the overriding issue is how to raise the standards in secondary schools generally. The Tories say they know a better way than the government's. Theresa May is the Shadow Education Secretary. The problem for you I suppose, Theresa May, is that the voters seem already to have decided because you have actually lost ground on your education policies since you were in opposition. THERESA MAY MP: Well I don't think the voters have decided and that's certainly not the message that I get as I go around and talk to parents and governors and teachers in our schools. I mean if we look back at the May 1997 Election the government..the Labour Party came into government promising that education would be a top priority. I don't think many parents thought that four years down the road of a Labour government they were going to see schools having been on a four day week, threatened with a four day week. Children being taught by unqualified staff, children being taught by a never ending stream of supply staff and the Chief Inspector of Schools warning that standards would be damaged. HUMPHRYS: And yet people rate them more highly when they're asked by the opinion pollsters. They were nineteen per cent ahead they're now twenty-eight per cent ahead on education specifically, inspite of all that. MAY: Well on opinion polls generally John, I don't tend to pay attention to one opinion poll or another, they go up and down. HUMPHRYS: I think you'd probably slit your wrists if you believed them all. MAY: Well I prefer to look at what happens in the ballot box and of course opinion polls generally have been putting us down as a party but in the ballot box recently we've been doing rather well. So I prefer to actually listen to what people are saying and hear what teachers and parents and others are saying about how disillusioned they feel with what the Labour government has failed to deliver for them in schools. HUMPHRYS: Well let's look at the policies. Teacher shortages; you've attacked them consistently over teacher shortages. In fact, they fell under you, the number of teachers fell under you, they are beginning to rise again now under the Tories, they are dealing.....under the Labour government. They are actually dealing with it aren't they. We heard what - you shake your head but we heard what the Education Secretary David Blunkett said this morning. They are planning to pay off teacher loans, student loans, that's going to help isn't it. And that's the trouble with it, they are nicking your clothes. MAY: Paying to train teachers tomorrow is not going to solve the problem of shortages in our schools today and the one problem that the government is completely failing to address is that this isn't an issue just about recruiting more people into teacher training for some stage in the future to come into our schools. Schools today are in crisis. I was visiting some schools on Friday, one Head said to me 'our education system is on the brink of disaster, We can't get the teachers we need.' Heads say they can't get the calibre of teachers. Heads are moving heaven and earth to cover up for their teacher vacancies. I saw a letter yesterday from a Head to parents of a school in Bexley Heath, saying that they are very sorry about all the things they are having to do to cover up the vacancies and maybe they'll have to go to a four day week. This is damaging children's education today. HUMPHRYS: Yes but that's precisely what the government is doing, is dealing with that by persuading more youngsters to become teachers. That's what David Blunkett was all about this morning..tomorrow. MAY: No, it isn't. The problem that the government is failing to address and one of the reasons why we've got these real shortages in our schools today is that teachers are leaving the profession in droves and one of the reasons that they leaving the profession, the over-whelming reason they give when they're asked why they are leaving is that they are fed up with the work load, the bureaucracy, the red tape and paperwork imposed by this government. Until we have a government that gets to grips with making teaching genuinely an attractive profession again, so that teachers can get on with the job of teaching children and raising standards, then sadly we will see teachers continuing to leave and we will see the problems that we have today and standards will be effected. HUMPHRYS: The overriding reason that they leaving is pay, they reckon they don't get paid enough. You wouldn't be able to pay them more. MAY: Well the survey shows actually that pay is not the overriding issue. The overriding issue is bureaucracy and workload, that is what is making teachers leave because they feel they can't actually get on with the job they are there to do which is teaching children and raising standards and inspiring children to achieve at their highest potential. Until we do something about that, until we get rid of that bureaucracy, until we set the schools free, let the teachers get on with teaching again, then I think we will see teachers continuing to leave the profession and children's education will suffer. HUMPHRYS: This expression 'setting the schools free' it's a bit of a nonsense in a way isn't it because you talk about abolishing or getting rid of most of the things that the LEAs, the Local Education Authorities do. That would load a lot more bureaucracy onto the individual schools which (a) they don't want and (b) they're not capable of handling. MAY: Well what would happen under our Free Schools first of all is that we would get rid of a lot of the unnecessary paperwork that is loaded on schools and teachers today. Paperwork that has nothing to do with raising standards in classrooms and has nothing to do with improving the quality of teaching of our children. So we would remove an enormous load of bureaucracy from the teachers. We would get - and by getting rid of that bureaucracy we would be able to get more money down into the schools and give the schools the freedom to decide how to spend that money in the interests of children in their classrooms. HUMPHRYS: You talk about five hundred and forty pounds per pupil but again that's a meaningless figure isn't it. I mean it sounds as if it's something you've sucked out of the air because it assumes that all of those things that are being done at the moment will not have to be done in the future, they will, they'll just have to be done by different people. MAY: Well it's not assuming that things won't be done. What we've done quite simply is said how much money today is being spent by local authorities that we can think would be spent better if it was down at the school level and how much... HUMPHRYS: It'll still be spent. MAY: Well and how much money is being spent by government that would be better down at the school level where heads and teachers and governors are making decisions for their own school. And one of the problems today with the way money reaches schools and schools have something like thirty-seven different streams of funding to cope with. One of the problems is that that brings an enormous workload of admin and bureaucracy and Heads often find that these different funding streams are constrained so that they are given so many thousand pounds and they are told what they can spend it on. And Heads will say, well I don't want to spend it painting the staff room for example, I'd rather spend it on books. HUMPHRYS: Well in that case, why do we have people like John Dunford who runs the Secondary Heads Association, saying and I quote "schools don't want to take responsibility for a whole range of things, school buildings, transport" They don't want it and the smaller schools, the primary schools simply can't do it. They don't have the resources, they don't have the ability, they don't have the training to do it. MAY: We've been here before in a sense with our Grant Maintained Schools and what we saw from Grant Maintained Schools is that having the money, having that freedom actually enabled the people in the schools to come alive, to take control of their destiny of the schools. In many Grant Maintained Schools, suddenly parents got more involved than they had been previously. And what we saw was a real ability with that freedom and the money to get on with the job of raising standards, to offer extra courses, to have more teachers, more equipment, whatever the school decided. Now in our proposals for Free Schools we would get the budget direct to the schools, all of their budget, on the basis of a national formula so that we could even out some of the discrepancies and differentials that currently occur across the country in funding per pupil and give the school the freedom on that budget. But, they would be able to buy in services from elsewhere and we already see..I visited late last..at the end this last week, I visited a primary school in Gloucestershire and I met a group of Head teachers who have clustered together and one of the things they tell me they're doing is buying training for their staff and they're buying training for their staff more cheaply than the Local Education Authority is providing it. HUMPHRYS: Adding to their workload though isn't it. And as the Audit Commission says, I quote again, small school heads have limited time to increase their financial expertise. If they have limited time for the training, there's no point in offering them the training, is there? MAY: No, there is every point in offering them the training... HUMPHRYS: Let's see...... MAY: Let's just look at what, because I'm not saying to you that I think that the schools should buy that training. What I'm saying is there was a group of Heads who themselves had got together and said, we can do this better. Heads of small primary schools who were actively saying, we're exercising freedom, we want to be able to do that to decide what is right for our teachers, and because it's right for our teachers, right for the children in our schools. HUMPHRYS: ...well I much prefer... MAY: ...and rather than taking that opportunity away from schools like that, I want to increase those opportunities to schools, so that all schools are able to make judgements about what works for them, not what the local authority or government thinks should work for them. HUMPHRYS: I'd much prefer to see the head teacher of the little local primary school worrying about what the kids are learning, rather than having to sort out the bus timetables or whatever it happens to be. That's not what they're meant to be doing. MAY: But it would be up to the Head Teacher to decide how they spend their money... HUMPHRYS: ...right, so if all of them said, if lots and lots and lots of them said, we don't actually like this idea very much, we go back to the old system, so we'd have two tiers of bureaucracy would we? We'd have one lot of schools being run by your old hated bureaucrats, and we'd have the other lot doing it for themselves. MAY: Schools will be free... HUMPHRYS: ...it's a bit like a pensions policy, choose which one you want. MAY: No, schools, well schools, choice is fundamental for schools, that's what I think is wrong... HUMPRHYS: ...but it is adds to bureaucracy, as David Miller's admitted on pensions yesterday. MAY: What is, what is wrong with the current system is that the schools are being overloaded with paperwork that bears no relation to improving standards in the school. They're being overloaded with decisions that are being taken by central government as to how money should be spent, or by local education authorities that hold money back, spend it on bureaucracy when it should be being spent on education of children. HUMPHRYS: ...has to be done anyway, I mean somebody has to do these boring... MAY: ...but a lot of it doesn't have to be done John, that's the problem today... HUMPHRYS: ...a huge amount does... MAY: ...that's the problem today. That's the problem today. There is, are circulars, a teacher coming into teaching in January two-thousand, within six months would have received one-hundred-and-forty circulars from the Department for Education and Employment. Now a lot of that bureaucracy is bureaucracy that isn't necessary. But when I talk to heads about the change that can wrought in their schools, when they have the freedom to make decisions for themselves, and sometimes it is freedom, not just about education in the classroom, but about things like school meals, and the provision of better catering and better food for the pupils. Heads who want to say, I want to lead my school, I have a vision for my school. I may not as a head want to spend all my time on admin, but I will either use part of the budget to employ somebody else to do that, or cluster together as the primary schools I suggested to do that... HUMPHRYS: ...just in thirty seconds... MAY: ...but the school will choose... HUMPHRYS: ...but just in twenty seconds now. We'd still have the LEA's, Local Education Authorities doing a great deal if the schools didn't want to do it themselves. MAY: Schools will be free to choose. We'd be setting schools free and fundamentally, we'd be letting teachers get on with the job of teaching children, rather than spending too much of their time on unnecessary paperwork. HUMPHRYS: Theresa May, thank you very much indeed. HUMPHRYS: And that's it for this week. If you're on the Internet, don't forget about our web-site. Until the same time next week, good afternoon. 24 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.