BBC On The Record - Broadcast: 01.04.01



==================================================================================== 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: 01.04.01 ==================================================================================== JOHN HUMPHRYS: Good afternoon. The election will NOT be held on May the third even though that's the date Tony Blair had chosen, so what other plans may be de-railed as a result of their current problems? I'll be asking the Trade and Industry Secretary, Stephen Byers. We'll be reporting from Scotland, where Labour is under greater pressure than anywhere else in the country. And we can disclose the extraordinary lengths the government's going to to get us to vote, whenever the election is called. That's after the news read by Fiona Bruce. NEWS HUMPHRYS: They do things differently in Scotland, fixed parliamentary terms and a separate agenda. So what sort of pressures is that bringing to bear on the Labour Party? And the government's controversial plans to persuade more of us to vote in the general election. RICHARD BRANSON: The government made it clear to us that if we won it, that they wanted to make sure that we participated with them in using lottery tickets to encourage people to vote. HUMPHRYS: And I'll be talking to John Redwood, the Chairman of the Conservative Parliamentary Campaign's Unit about their response to the Election date news. JOHN HUMPHRYS: But first however secure a government may seem it can always be thrown off course by events that no-one could have foreseen. Such an event, of course, as the foot-and-mouth outbreak. Tony Blair has been forced to abandon his plans to hold the elections on May the third, even though that was part of Labour's hope. One cabinet minister with perhaps more reason than most to regret that, in a sense, is the Trade and Industry Secretary Stephen Byers and he's with me. Mr Byers, it has been said, I am sure you are one of those ministers, who said it, everybody seems to have said it, Britain is not closed for business and yet that is now the message that Tony Blair is delivering with the news that the election has been postponed. STEPHEN BYERS MP: Well let's wait to see exactly what the official statement is, the only elections that have been planned for May the third were the Local Elections. HUMPHRYS: ..officially. BYERS: ..officially planned for May the third were the Local Elections and if there is a delay I think it should be a short delay. I don't think it would help if it was postponed indefinitely. I think that would send out the wrong signal, particularly adversely effecting the tourist industry. But I think where we are at today, there has been a drop in people visiting the countryside, going to tourist attractions, I think we can overcome that with a heavy promotion and publicity campaign and I think provided that we don't give the signal that things are in great difficulty and that's why the Local Elections might be delayed then we can overcome those particular problems. HUMPHRYS: But it is bound to send that signal isn't it. I mean one of your colleagues, the Culture Secretary Chris Smith was saying just yesterday morning and I quote "we must send the message that Britain..." - "we must not" - I beg your pardon - "we must not send the message that Britain is somehow closed". So he clearly wanted the elections to go ahead. I mean have you not been told? BYERS: I don't think it will send that message. I think what it will be is that the Prime Minister will want to consider and he's been listening and he will make a decision as to whether or not the Local Elections should go ahead on May the third. HUMPHRYS: He hasn't told you yet? BYERS: The Prime Minister will, I think, tell the country whether or not the Local Elections will go ahead on May the third. I don't know what decision he will take. What I do know is that the Prime Minister's instincts, both personally and politically are always to unite and not to divide. And I know that he will put the national interest ahead of any party political advantage. I know he will do that and then we will hear what he has got to say in due course. HUMPHRYS: You say we'll hear what he's got to say but obviously he or one of his lieutenants, trusted lieutenants have already told the Political Editor of The Sun and the Political Editor of the BBC. I mean we know.. BYERS: There's been a lot of speculation John. If you were to go back a week you'll see people there were predicting with great certainty it was definitely May the third. We wake up this morning and people are saying it's definitely going to be... HUMPHRYS: We work up yesterday morning to hear The Sun telling us it was definitely not May the third. BYERS: But a week ago, The Sun was saying it was May the third so let's wait for the Prime Minister to make a decision about the Local Elections. The important thing in all of this though, is first of all to get on top of and contain the foot-and-mouth disease. It's worth reflecting it's only effecting one per cent of the livestock but in certain parts of our country, Cumbria and Devon and the Welsh borders it is clearly having a dramatic effect and it's right that we should be sensitive to the concerns being expressed by local people in those areas but not to get it out of proportion because there are large parts of the country which are simply not effected by the disease. HUMPHRYS: But one of the reasons that we have, if we have, got it out of proportion and clearly we have, is that MAFF, the Ministry of Agriculture, Fisheries and Food led by Nick Brown got it wrong right at the beginning because they told us "stay away from the countryside". I mean that was the very very clear message, they thanked us a few days after that first weekend for not going into the countryside, that is why tourism has been destroyed. It sends quite a message about MAFF, the Ministry doesn't it? BYERS: I think people right at the very beginning of the disease, recognising how significant it is and the damage it can cause, were rightly cautious and I think people will understand that. What if six weeks ago people had just said, well yeah go to the countryside as normal, then I think John, you'd have been the first to criticise if the disease had been spread more widely because of that. What we have been trying to do is to contain the disease and I think we are now on top of it and that means we are more able now to say yes, the countryside is open, there are large parts of it which are not effected at all, there are some areas where you have to be very cautious of course but to say the countryside is still open for business which it is. HUMPHRYS: Yeah, but the point is that MAFF could have given a more measured warning, that's the point and the reason that it didn't do that is because as a Ministry it is too narrowly focussed. It has the interests of only one group of people as its concern and that is the farmers. Nobody said, what about the rest of rural Britain, nobody in MAFF said that, Nick Brown didn't say that. The Ministry is concerned only with the farmers. BYERS: I go back to the point I made earlier, I think it's understandable that there is caution, that what people want to do is to ensure that the disease did not spread rapidly throughout the country. It was very important to be able to do that because then by containing it, we can now concentrate in those areas where clearly it is a very real problem. Had that not happened, then it could have been actually spread far more widely than it has at the moment. HUMPHRYS: Yeah, but the result of the message that they did deliver which was 'don't go anywhere near the countryside'. The result of that was the rural catastrophe, crisis that we are now seeing; hundreds and hundreds of millions of pounds lost to businesses in areas that should not have been lost. You sometimes have to wonder whether anyone really worries about rural Britain. BYERS: Well they do and that's why we've put in place some very positive measures to help those businesses which are effected, not just the farming industry but the tourist industry as well in particular, giving them help in terms of rate relief, in terms of help with VAT, with tax, with National Insurance contributions and so on. All of those measures are now in place, not just restricted to the farming industry but to the whole of the rural industry which has been effected. HUMPHRYS: But that - those are crisis measures aren't they and if you look at the broader picture, we learned just Friday or Saturday that the Rural Affairs Committee, set up to co-ordinate the government's policies effecting rural areas has met only once since it was set up and that's a year ago. You're a member of the committee, so you'll know about that. BYERS: Well I am, it's a really old fashioned way of looking at things, that you have to get people together to sit around a table... HUMPHRYS: ..that's how things are done in Whitehall.. BYERS: Not with new technology, not with being able to communicate with each other and the important thing is there are a group of Cabinet Ministers that have responsibility for the rural community, we communicate, we deal with each other, we meet occasionally, we meet in cabinet and that's the way in which we can deal with things. It is a very old fashioned way of looking at matters, a very BBC view John, to look at committee structures as being the way forward. HUMPHRYS: We've cut some of our meetings, so I'm told, I don't go to any meetings so I wouldn't know... BYERS: I think there is a better way of doing it which is making sure there is a dedicated group of Cabinet Ministers that have issues of rural concern as a priority and we do that and we communicate with other. HUMPHRYS: Is it not necessary to get together occasionally, to say look, how are we doing and what's happening here and what's happening there, and this is a very important committee? BYERS: We do, we do. We meet in cabinet, we talk about things there, we can talk on the margins of those meetings. We have formal meetings occasionally, we've had a rural White Paper. You know, we're addressing the real concerns. My own department is doing lots of work establishing small businesses, helping the Post Office network in rural communities. There's a lot that we're doing, there is a shared agenda, and we're working actually in a very coherent way. HUMPHRYS: Isn't the reality, and I hardly expect you to say this, loyalty apart from anything else would prevent you from doing so, but that MAFF, the ministry is a disaster area? No matter who you speak to who used to work there - clearly people who are there at the moment say "Oh no, it's doing a fine job" as you'd expect. But the people who used to run the ministry almost invariably say "It's bonkers to have this ministry still in two-thousand and one. Let's close it down, let's fold the whole thing up and let's put its responsibility into your department". BYERS: Thanks very much. HUMPHRYS: Well, there you go, if you've got not enough to do, the Department of Trade and Industry, but realistically that's where it ought to be, didn't it? BYERS: I'm not sure this is the right time to look at, you know, ...... HUMPHRYS: Possibly not. BYERS: But the important thing is to get on top of foot- and-mouth disease. Now we're containing it, the National Farmers Union has said that the overriding policy I now right, we are getting on top of it. We need to contain and eradicate it. I have to say it's a terrible distraction to begin a debate now about the future of MAFF. HUMPHRYS: Well, except that it does get to the heart of the thing doesn't it. I mean if you look at farming now, we making a great fuss about foot-and -mouth, and quite rightly too most people would say, because of the suffering that it is causing many farmers and of course the animals themselves. But farming is a relatively small industry in terms of the total economy. Looking at some figures it's about point nine per cent. If you look at your budget, if you look at your budget comparing it with MAFF, MAFF spends if you take out the CAP and all those subsidies about one-point-three billion pounds, you spend if you take out subsidies and things about one-point-four billion pounds. That is manifestly crazy. Agriculture nought-point-nine per cent of the GDP, manufacturing alone, apart from all the other responsibilities you've had, eighteen-point-eight billion pounds. I mean it is silly isn't it.? BYERS: Well, it's silly to get to a situation where we have industries which are dependent upon subsidies, and that's one of the very important..... HUMPHRYS: Yes, but putting that aside, ... BYERS: The question you're raising John, I think we've got to get to a situation where for example we reform CAP, which is at the crux of many of the problems that we face not just in the United Kingdom, but throughout Europe as well, and that's a top priority to see changes there, because it would open up a whole round of new trade negotiations world-wide for example, which would really benefit British industry more generally. So we do need to look at the whole sort of subsidy culture and I do think that farming has a very important role to play within the United Kingdom and we should always recognise that. Now, there will be changes and there's been some very progressive work which we've been doing with the National Farmers Union in particular to identify a new agenda and new way forward as far as farming is concerned. But remember a year ago, farming was facing very real difficulties and the first priority was to make sure that we could turn the corner as far as farming was concerned, and indeed if you look at the figures up until the turn of the year and indeed the first six weeks of this year all the indications were that farming was on the up, that we had indeed turned the corner, that the measures we'd put in place were working, and working well, and then suddenly we got foot-and-mouth, and now we have to deal with the consequences of that. That really has to be the top priority for any government at the present time. HUMPHRYS: And clearly the bigger questions are going to be raised after the election as you suggest, but your own position in this might be difficult might it, .this is why I raised the point right at the beginning of this interview about delays, the delay in the election having some knock-on effect. As far as your own position is concerned it has been called into question because of the allegations that were made in a book by Tom Bower over the way your department handled the inquiry into the business affairs of Mr Robinson, Geoffrey Robinson. You have threatened to sue the Daily Mail and the publishers of the book as a result of those allegations. Have you issued the writ yet? BYERS: Well, the allegations weren't about my department. They were about my own personal conduct. They were very serious because what they did say was that I received a report into the activities of companies associated with Geoffrey Robinson, and when I got that report I looked at it and I deliberately decided, to quote Tom Bower, " to bury it, to suppress it and to deny it to parliament". That is totally untrue, and what did happen for the record is that two weeks after I was appointed to Secretary of State for Trade and Industry I received advice from my Permanent Secretary Sir Michael Scholar saying that in his view I should rule myself out of dealing with any business activities, any investigation into companies associated with Geoffrey Robinson. I took that advice and as a result I saw none of the documents and none of the papers, and so I didn't see a report, therefore I was in no position to deny it to parliament. HUMPHRYS: Let me come back to that in just a second if I may, but repeat the question. Have you received a writ yet? BYERS: No, what happens is if you've been involved in this sort of process John, you will know that you have to give the person making the allegation that I believe to be defamatory the opportunity of an apology and a retraction. HUMPHRYS: And they've said no. Absolutely no, the Mail has said over and over again "He can whistle!" BYERS: Well, there are letters going between lawyers at the moment. HUMPHRYS: So you have asked for that apology? BYERS: Yes I have. HUMPHRYS: And the Mail has made it perfectly clear that you're not going to get it. They've sent letters back to you presumably. BYERS: Well, there are still letters going between lawyers as they do. HUMPHRYS: Right., so if you do not get that apology, because it's now a fortnight we're talking about isn't it - if you do not get that apology you will proceed with the writ? BYERS: Well, a fortnight is not long in these matters, and I have apparently up to three years to bring any action against the Daily Mail, so let's see what happens. I hope that when the Daily Mail can see exactly what the sequence of events were that they will recognise that what they said and what they printed wasn't accurate, and they would feel able to say, put in the retraction and say sorry we got this wrong. HUMPHRYS: And just to be quite clear about this, in the absence of a retraction from the Daily Mail within a reasonable period, I mean clearly you're not going to wait three years even if you could wait three years. If the Daily Mail does not issue a retraction you will definitely issue a writ. Is that the situation? BYERS: I hope it doesn't come to that, but if it has to be the case then yes, that will be so. HUMPHRYS: Because you'd have to really wouldn't you. I mean not to issue a writ having made the threat would be damaging, very damaging for you. BYERS: It's not that so much. I just want the record to be put straight, and I can understand why the mistake was made, because all of the information would have led Tom Bower to believe that I was actually involved in the investigation and was seeing all the papers, which is why I think he..... HUMPHRYS: Alright. BYERS: ...he came to the conclusion he did. That wasn't the case, and so all that I want really is for the Daily Mail and for Tom Bower - he's a very good reporter - to actually say: Look we got this wrong, we're sorry, and the true facts are that Byers just didn't know of the investigation, didn't see the report. HUMPHRYS: Right, well let's have a little look at that then and forget about you being involved in the investigation itself. Of course, you weren't involved in the investigation, nobody believes that... BYERS: ...I'm glad to hear it. HUMPHRYS: ...as Sir Michael Scholar - well, involved in the investigation itself. But now let's look at the sequence of events that followed the publication of that report. You've said that your department had absolutely nothing to do with the decision as to whether that report was published. That you had nothing to do with the decision as to whether that report was published because it was published under Section 447 of the Companies Act. But, and this is an important point it seems to many people, there were exemptions available to you, you could have published, the fact is, that many people believe that your department did not want to publish it, you didn't want to publish it because it would have been embarrassing for the government, given what it contained. BYERS: No, well actually you're making a fundamental mistake of first of all believing that somehow politicians decided what sort of investigation was to be carried out... HUMPHRYS: ...no, I've already moved past of the point of the investigation to the point of the publication of the report. BYERS: Right, so we're clear then, that it was a decision by civil servants to conduct an investigation under Section 447 of the Companies Act, which was the case, so let's be clear about that. They decided it should be a Section 447 investigation, which is the norm in this sort of situation, to be honest and my department conducts between two hundred and three hundred such investigations every year. They find out certain things during the course of that investigation. In the light of that, they decide, without reference to any politicians, that Geoffrey Robinson or his solicitors, can be informed that no further action would be taken, because they didn't find out anything during the course of those investigations, that they felt warranted any further action to occur. HUMPHRYS: Well, that really is the nub of it, isn't there, I mean the fact is what Tom Bower reported was that they had found an invoice, a signed invoice which proved, he says, that Mr Robinson was not only paid a large sum of money, two-hundred-thousand pounds but also solicited that money from Robert Maxwell. Now he was, at the time of this publication, a government minister and he had said that he had not solicited or received that money. That is a very substantial difference isn't it? BYERS: It's a very substantial and significant allegation and I think the important thing, going back to what can be published and what can't be published, is that an investigation under Section 447 of the Companies Act, is covered by a prohibition under Section 449... HUMPHRYS: ...except that there are strictly defined circumstances under which... BYERS: ...which allows publication. HUMPHRYS: That's right and can I just, for the benefit of the viewer, point out that they say that under those gateways, as you say, they can be published, results of an enquiry can, such an enquiry can be published, relating and I quote "to discharge by a public servant of his duty". Now in this case, there is no question that Geoffrey Robinson was a public servant and there is no question that when we talk about his duty, it is the duty of a minister not to lie to Parliament. So there were very clear areas here that would have allowed you, had you so wished, to say to Sir Michael Scholar, I want that report published. BYERS: No because I'd ruled myself out of consideration of the matter and that's the very important thing to realise. I didn't see any report or any consequences of the investigation because if you rule yourself out the investigation, then you are ruled out of it. You can't then dip back in and say, oh by the way Sir Michael, can I have a quick look at the report and how it's proceeding... HUMPHRYS: ...but you made a statement to MPs. You told MPs in a written answer, there has been a thorough inquiry in line with the procedures. Well difficult to see how you could have known that there had been a thorough inquiry in line with procedures if you'd not even read the report. BYERS: Well, I have to reply to Parliament. Officials cannot do that and it's my responsibility to inform Parliament and what I sought to do was to be as open as possible, with the advice that I had received without seeing the details of the investigation... HUMPHRYS: ...so Sir Michael Scholar then, so Sir Michael Scholar should have raised the point that I've just made, should have exploited this exemption because here we had a public servant being involved. Sir Michael Scholar should have come to you and said, look minister, this is a very serious matter. This is what this investigation has turned up. BYERS: Well the decision taken was that Section 449 meant that there was a prohibition on publication but what I can say John, is... HUMPHRYS: ...except in those circumstances that I've pointed out... BYERS: ...well there's a list of them and there is a counter view to say that the prohibition applies to the information that was achieved even in these circumstances. But what is important I think at this stage is that the Parliamentary Commissioner, who has now begun a further investigation into the activities of Geoffrey Robinson, should be provided with all of the relevant information. Now there is a problem as far as what my department discovered from the Section 447 investigation because we believe, and the department believes that it's covered by a prohibition under Section 449, so what we've been trying to do is to find another way in which the information can be obtained and provided to the Parliamentary Commissioner and what we've indicated to her during the course of last week and I'll be saying this actually tomorrow more formally, is that there are other ways in which the information can be obtained by her without falling foul of the restrictions under Section 449. HUMPHRYS: So to be quite clear of this, you will provide, you and your department, will provide Elizabeth Filkin with all the material that she needs properly to look into this herself. BYERS: What we've done is to provide her with the sources of the information that we received during the investigation. Those sources are not constrained by Section 449 of the Companies Act. HUMPHRYS: And you will encourage them to tell her what they told the inquiry? BYERS: Yes. HUMPHRYS: So she will have every bit of information that was available to that inquiry? BYERS: Yes. HUMPHRYS: And you, as the Secretary of State, want her, I take it now, knowing what we now know, to conduct a full and thorough investigation. BYERS: Well, the Parliamentary Standards body has already said that and that's why they've restarted the investigation, so she's already been charged by the committee of MPs to do this. My responsibility I felt, was to make sure that she did have the relevant information. We are constrained by Section 449 but if we can find another avenue which allows her to receive the information, then I think we are doing the appropriate thing, we've managed to do that and the information will be there for her. HUMPHRYS: Let me move onto a completely different area and that is the Euro, this is...we are also moving around a little bit there. The postponement of the election means that it's going to knock that whole process back, doesn't it, whether we are going to have ultimately, whether we are going to have a referendum. The longer the delay in the election, the greater the need to start assessing those five tests that Gordon Brown has laid out, the greater the need to get that going quickly, as far as you're concerned because we all know that you're a pro-Euro minister, as a guess... BYERS: ...I'm very pragmatic about the single currency. I think the policy we have is the one which is absolutely right. We can see the benefits of joining a successful single currency in terms of trade, transparency of cost and currency stability but those five economic tests have to be met. It's got to be in the national interest and in all of this and whether it's in relation to whether or not the local elections should be postponed or whether it's in relation to the single currency, the national interest has to be put first all the time and I've got no doubt that's what we will do when we come to look at the single currency and the Prime Minister will do as he looks at whether or not to postpone the Local Elections. HUMPHRYS: ...one of the problems with the strength of the pound, the weakness of the Euro, however you want to look at it and the relationship between them is what the effect it has on manufacturing industry. Peter Mandelson wants a referendum for regional....regionally elected assembly for the North East which is of course your area as well, our region must grasp the opportunity for constitutional reform, he says, do you agree with him on that? BYERS: I am pleased that Peter has entered the debate about regional policy. I think it's very important, first of all to have an active regional industrial policy, so that all of our regions can share in the prosperity that we are seeing down here in London and the South East and that isn't the case at the moment. So... HUMPHRYS: But a regional assembly, an elected assembly. BYERS: In terms of the structure, I think local people should determine this themselves. I think there has to be a degree of accountability. We are giving more powers, we are giving more resources to the regional development agencies. HUMPHRYS: So you'd favour a referendum then? BYERS: I think we should find a way. I'm not - whether it has to be a referendum or if there's some other method then I think we do need to look at that. But we also need to look at the structures that will flow from it, whether we then have to move to a unitary system of regional government or local government as well is something I think we will need to address. HUMPHRYS: Stephen Byers, thanks very much indeed. HUMPHRYS: Whenever the General Election comes, the polls tell us Labour is in an impregnable position. But they're not quite so secure north of the border. In Scotland they have to defend not only what's happened at Westminster but how they and their Liberal Democrat allies have performed in the Scottish government too. And the Opposition is tougher there as well. The Scottish National Party is giving them a run for their money. Terry Dignan reports on what is likely to be a very different election from the rest of the United Kingdom. TERRY DIGNAN: For weeks the parties in Scotland have been on election footing, rehearsing their battle plans in readiness for an all-out offensive to take enemy-held constituencies. But in truth, they've been preparing for the unknown, unsure as to what awaits them. When battle commences here in Scotland the election will be fought in circumstances never before experienced by the main political parties. This may result in a wholly new approach to campaigning, quite different from what we'll see in England. And all because - from a Scottish perspective - political power is no longer a monopoly of Westminster. This will be the first general election since Tony Blair fulfilled his pledge to re-establish a Scottish Parliament. After elections to the parliament Labour formed a coalition government with the Liberal Democrats to run Scotland. Led by the late Donald Dewar, the Scottish Executive took office when the Queen opened the parliament. The coming general election is for a UK government. But in Scotland the Executive's performance in the parliament will still be an issue. PROFESSOR JAMES MITCHELL: The SNP and the Tories will try and make use of the Scottish Parliament to embarrass the Labour Party and the Liberal Democrats as they've been doing during the Parliament since it was established. DIGNAN: The SNP, the Scottish National Party, wants independence. It regards the general election as an opportunity to cast a verdict on Labour's record in the new Parliament. ALEX SALMOND MP: Rather than that not being a factor in the Westminster election, I think it'll spill over into the Westminster election and what's going on in the Scots parliament will be an issue in this Westminster election. DIGNAN: The Tories, too, hope to exploit Labour's record in the Parliament. They won't be drawing any distinctions between the Labour-led Executive in Scotland and the Labour Government at Westminster. SIR MALCOLM RIFKIND: We happen to be living in a time when Labour controls all levels of government - they control the local council here, they control the Scottish Parliament, they control the United Kingdom Government. The public have a right to use an election to either praise the Labour Party, if they're pleased with what has been delivered, or to punish them if they think that there's failed opportunities and missed opportunities over the last couple of years. DIGNAN: But ministers in the UK Government don't run the Scottish Parliament. And they believe it's their record which should be judged at the general election, not that of the Scottish Executive. HELEN LIDDELL MP: Really at the heart of everything in Scotland is the economy. We've managed to create over a hundred thousand new jobs, the lowest levels of unemployment for a generation. That is inextricably linked with the wellbeing of my constituents, and they recognise that requires a Labour government at Westminster with the kind of economic policies we've been pursuing to bring stability rather than boom and bust. DIGNAN: Conservatives like Sir Malcolm Rifkind are stepping up face to face meetings with voters in marginal constituencies. They hope to regain seats they lost at the last election by taking votes from Labour and their Liberal Democrat partners in the Scottish Executive. UNNAMED MAN: As you know, as you find out probably yourself, when you do take the trains you're stuck. DIGNAN: The Conservatives - and SNP - believe the Liberal Democrats are in retreat. RIFKIND: In the past people voted Liberal Democrat because they didn't want Labour or Conservative. Now they find in Scotland that the Liberal Party has become a wholly-owned subsidiary of the Labour Party; they're a junior member of a coalition. MITCHELL: As we've seen in the past when Labour and the Liberal Democrats have worked closely together, as in nineteen-ninety-two, the Liberal Democrats can suffer in areas such as the north east of Scotland. And this is going to be a real worry for the Liberal Democrats. SALMOND: I think the Liberal party's going to pay a heavy price for being seen as Labour's client party as they now are in Scotland, and they're going to find it much more difficult to present themselves an Opposition party in terms of the Westminster elections. DIGNAN: But the Liberal Democrats say they're independent despite joining Labour in the Scottish Executive. They argue that since devolution the electorate has got used to parties co-operating. MALCOLM BRUCE MP: It's the kind of politics, frankly, that a modern democracy must get used to and it doesn't have any bearing on the fact that in a campaign, whether it's for a Scottish parliament election or for the Westminster election, Labour and the Liberal Democrats are separate, independent parties, campaigning for our own support, on our own policies and inviting people to give us the strength to implement them. DIGNAN: In the next door constituency the SNP's Alex Salmond is describing to parishioners his local connections. SALMOND: I think Banff and Buchan as an area is a good place - and a cheap place - to have holidays, you know. DIGNAN: Voters will punish the parties in the Executive, he says, for mishandling issues such as aid to the fishing industry. When the Parliament voted - thanks to a Liberal Democrat back-bench rebellion - for extra financial help for the fishermen, it's claimed ministers took no notice. SALMOND: Scots' government ignored a democratic vote at the Scots' parliament in fishing and Labour and the Liberal parties turned over a democratic vote, will be a huge issue in this general election campaign. LIDDELL: We are in a position now where the parliament is beginning to bed down. Yes there will be rows, yes there will be arguments that's the nature of politics. But people recognise we delivered one of our key pledges which was the establishment of a Scottish parliament. And with partnership between that Scottish parliament and the Government at Westminster, we are able to deliver a better Scotland, and I think that's what people will focus on in the election whenever it comes. DIGNAN: Labour MPs like Jim Murphy swept aside all opposition in constituencies such as Eastwood at the last election. But that was before devolution. Now Labour's leadership at Westminster is anxious that the actions of the Scottish Executive may undermine their MPs' chances of re-election. MITCHELL: There have been a number of issues in which the Executive has had problems, partly because of the divisions between the Labour Party and the Liberal Democrats, most recently on the issue of fishing. And that clearly has embarrassed the Labour Party, not just in Scotland, but across the UK. That's the kind of issue which if it arises, in the run up to the election and during the election, would be seriously damaging to the Labour Party. And it's quite clear that all efforts inside the Labour Party are to ensure that this kind of thing doesn't happen. DIGNAN: When the election is called all the main parties in the United Kingdom will argue over how best to provide better public services like Health and Education. But in Scotland the election may also expose quite serious differences over spending on these services between the Labour-led Scottish administration here in Edinburgh and the Labour Government in London. When they're out meeting voters Labour MPs may have to explain why, for example, they support university tuition fees while Labour members of the Scottish Parliament have scrapped them. "That's devolution," they'll reply. And they'll say that returning Labour to Westminster will safeguard the economic policies which allow Scotland to choose to spend more. LIDDELL: The Scottish Executive has to take its decisions, as any elected authority has to, based on the budget that it has. And if it chooses to spend that budget in a different way that's what democracy's about and that's what devolution is about. But it shows how important it is to have a devolved settlement not divorced from the rest of the United Kingdom because the strength of the United Kingdom economy is allowing the Scottish Executive to pursue some very radical policies. DIGNAN: The Executive has also accepted free personal care for the elderly in principle. Malcolm Bruce's Liberal Democrat colleagues in the Scottish Parliament can force Labour to be more radical than the Westminster government because the Nationalists and Conservatives will vote with them on issues like long-term care and tuition fees. Yet the Conservatives will be fighting the General Election to cut spending and reduce taxes. PROFESSOR JAMES MITCHELL: The Tories in the Scottish Parliament have been behaving like a classic Opposition party, arguing for increased public expenditure in a whole range of matters. Now that clearly doesn't sit very well with William Hague and his party south of the border, who are trying to present themselves as a sort of an economically responsible alternative party of government. RIFKIND: It was true even before you had devolution when the Secretary of State for Scotland - and I occupied that post - sometimes did things differently to what was being done south of the border. That's perhaps more likely now that you have a Scottish Parliament, but it's got to be done on the basis of the merits of the issue and not for some fundamental ideological or constitutional reason. DIGNAN: Indeed, some believe the Parliament in Edinburgh may have trouble paying for its pledges. Relying on a grant from Westminster, the Parliament currently receives more per head of population than England for services like health and education. That causes resentment among MPs representing English seats. But under the so-called Barnett Formula the gap is closing - which is something the SNP will exploit during the election campaign. PROFESSOR MITCHELL: One issue the SNP's been trying to get across is the fact that Scotland's share of public expenditure is being squeezed. It's still going up of course but relative to England the SNP and indeed academic commentators have pointed out is being squeezed. It's something which is quite technical but the SNP are going to have to try and find some way of popularising this message and getting that across. But of course again it's an issue on which all of the other parties will try and steer well clear of. SALMOND: The big battle for the next Westminster parliament as far as Scotland's concerned, is going to be Westminster attempts to starve the Scots parliament of funds. And therefore I think it's absolutely vital there are people standing up for Scotland in the Westminster environment and also standing up for the Scots parliament. DIGNAN: The SNP says an independent Scotland governed from Edinburgh wouldn't be at the mercy of decisions made by a United Kingdom government at Westminster. The other parties may have to tackle this issue head on, wearily perhaps because they may have thought that the creation of a devolved Scottish Parliament had ended the debate about Scotland's constitutional status. BRUCE: I think the SNP's problem is they continue to claim that Scotland is richer than the rest of the United Kingdom without, I have to say, producing any evidence that's credible, whereas in reality I think most people in Scotland recognise that there is great strength in being part of the United Kingdom and sharing the costs, for example, of defence and foreign affairs and trade relations with our partners within the Union rather than trying to have to fund the arrangement for ourselves. LIDDELL: They want a separate Scotland they want to divorce Scotland from the rest of the United Kingdom. That's all they've got to say in this General Election. DIGNAN: It's argued that the creation of this Parliament has undoubtedly strengthened the SNP and that's something which should worry Labour because it if really is the case that the Nationalists are now a much more formidable fighting force, they could use the General Election as a springboard to take control of this Parliament at the next Scottish elections in two years' time." SALMOND: Well the impact of the Scottish dimension to politics has been to pull up SNP support particularly for the Scots parliament, but also for the Westminster elections and we're very happy with that. MITCHELL: This time round of course the SNP has a substantial contingent of politicians in the Scottish Parliament and they're going to be working full time in the SNP's target seats. So in that respect the SNP's resources are far in excess of anything they've had in the past. If the SNP does reasonably well in these elections and their vote rises as compared with 1997 I think it's a fair assumption that that suggests that they are likely to do pretty well in two years' time at the Scottish general election. DIGNAN: So when the UK election gets underway, the arguments heard in this parliament will inevitably flow into the campaign. UK issues won't be absent. The Conservatives will oppose joining the Euro, Labour will emphasise its management of the British economy. Indeed, the campaign Labour most wants to fight here is about who runs Britain. LIDDELL: Well at the end of this General Election one of two men is going to walk into Ten Downing Street. It will be either William Hague or Tony Blair and any vote for someone other than a Labour candidate is a vote to help William Hague into Downing Street. That's a very, very clear cut message." DIGNAN: No matter how hard the parties drill for the coming election, in Scotland it may not be enough. They could be entering unfamiliar territory where the influence of a devolved parliament is likely to scupper the old certainties about how politicians campaign to take power. HUMPHRYS: Terry Dignan reporting there. JOHN HUMPHRYS: Tony Blair has given into the pressure and decided there will not be elections on May the third, that's what William Hague said he should do. So that's good news on the face of it for the Conservatives. But, no sooner has Mr Blair ruled out May, than the Conservatives are saying, or some of them, he should rule out June too. So, are they just playing politics with this. John Redwood is the Chairman of the Party's campaign unit. Mr Redwood, Tony Blair has done what you urged, so why aren't you applauding instead of carping? JOHN REDWOOD: Well Mr Blair has dithered and he has dithered at a time of national crisis. William Hague made a very sensible and clear statement, all the time the rural economy is in crisis, all the time the livestock industry is up against these terrible pressures, the Prime Minister should concentrate on that. How does the Prime Minister know that's all going to be cleared up by June the seventh. I and my colleagues would be delighted if it's all gone by June the seventh but it doesn't look very likely at the moment. HUMPHRYS: So when would you call the election? REDWOOD: The election timing should be settled, the General Election, once the national crisis is clearly under control and on the way or even better when it is over. There's no need to have a General Election until another year has gone by. HUMPHRYS: What about the local or council...county council elections? REDWOOD: Well the Conservative Party did say a long time ago that they should be deferred, at least in the effected areas, if he wants to defer them in all areas, well will he please get on with it so that all the council candidates know where they stand.... HUMPHRYS: ...deferred to when? REDWOOD: ...from the point of view of our party interest, we would like to get on with the Local Elections. We think we are going to win a lot of seats and we have a lot of things we want to say to people but we don't want to go ahead in areas where it's impossible to campaign fairly and sensibly and if the government comes forward with a decent proposal for delay across the country, well then we will look at that and may even support it. But we haven't finally decided what would be the best form for the Local Elections, we want to see what the government's proposals are. HUMPHRYS: But when you said defer, a decent time and all that, until when? REDWOOD: Well I think we need to look at the state of the crisis and how quickly the government thinks it can get on top of it. It's up to the government to tell us, honestly, how bad the crisis now is, we don't feel we have been getting the whole truth out of them. They need to explain why they have been so slow in handling this twin rural crisis, not just the crisis in the livestock industry, but the crisis of no visitors going to many parts of the countryside at all and nearly bankrupting a lot of other businesses. How long they think it's going to take them to get on top of that and then we can come to a sensible judgement on when and how elections can be fought. HUMPHRYS: Right, so you're not saying no elections so long as there's a single case of foot-and-mouth in any English county. REDWOOD: No we're not saying that. We're saying the thing needs to be under visible control and we need to know that the crisis is well on the way to being resolved. HUMPHRYS: But you would have to put forward, well you say you can't put forward a date because nobody can do that. I mean what Tony Blair has to do, presumably, when he finally tells us himself, he has to put forward a date doesn't he? REDWOOD: Well I think he does on the Local Elections yes and that is the Prime Minister's job. He is in possession of all the information, we don't have all the information about the state of the crisis... HUMPHRYS: Well we know what's happening... REDWOOD: ..or how quickly he's going to get on top of it. We fear that he's not getting on top of it quickly enough. The Conservative Party has been demanding stronger and quicker action throughout this crisis and belatedly, a week or two later, the government picks up some of our ideas and tries to do them, often too late for them to be successful and I hope we don't stay in that position for much longer. I hope now that Mr Blair has partly made up his mind on the election, he can now put his effort in, day by day, to trying to combat these twin rural crises because he is facing the possibility of bankruptcy of a very large number of rural businesses and it's no good having Michael Meacher on the telly waving a couple of wellington boots around thinking they've done the job if the foot baths are closed, if a lot of the visitor attractions are closed, if all the animal attractions are closed, if there are funeral pyres burning in the fields it will be Labour's cruel spring. It will be the spring of discontent and no amount of spinning is going to change that. HUMPHRYS: So, given that you have, as you say, offered advice in the past and given that we do know what's going on out there pretty much anyway and we can talk to the Chief Vet and all the rest of it, just as anybody else can, you must have some idea of a date for the County Council elections? REDWOOD: Well, we would say that in the affected areas that they have to be delayed until you have a clearer idea of where the crisis is going and the essential thing is to get a grip because this awful poisoned Spring is causing so much damage and it's probably to going to trigger difficulties for the economy as a whole. If a lot of rural businesses get into serious trouble and it looks as if they are going to, on top of a Stock Market crash, on top of a telecoms crash, partly created by Brown over-taxing the telecoms companies, it doesn't make a very pretty picture and you may have seen that people's optimism about the economic prospects has taken a plunge in the last few days and I'm not surprised. It needs the whole-hearted concentration of the government to try and tackle these problems, some of which they have created. HUMPHRYS: But given that we can't until things sort themselves out, hold elections in those two crucial counties, in Cumbria and Devon, what about County Council elections, a date for them in the rest of England. I mean, you must be able to give us some idea of when you think they ought to be? REDWOOD: Well I don't know what my colleagues are going to agree. There are several options... HUMPHRYS: What do you think? REDWOOD: You could say that there should be County elections in the rest of England quite soon... HUMPHRYS: June the seventh for instance? REDWOOD: ...and leave out the two or three counties that are very badly affected and put in a different date for them, or you could say that we should wait until the government is confident that the crisis is on the wane and then settle the date for the whole country. I would like to see what my colleagues agree, William Hague hasn't yet pronounced on this and I'd like to see what the government's proposals are. But we need some certainty in this and it should be the government that is offering the lead in this because they are trying to handle the crisis. I mean how many more sheep and cows are they going to kill before they say that they need to use vaccination as well? And are they going to allow all the farmers, in areas which don't yet have the disease, to move some of their animals because the animal welfare problems in some of those fields are appalling. There are sheep now in fields that are flooded or with no grass, they're not allowed to move them and so they have terrible welfare problems and I think it is high time the government recognised that. HUMPHRYS: Do you think we should start vaccinating now then? I mean, tomorrow, immediately? REDWOOD: Well, I think vaccination should be an option for farmers. I don't know why they've dithered for so long over that. Everything about this crisis, they've done too little, too late. They've now said that vaccines are available, we're told there is a row going on between the Prime Minister, who is meant to want vaccination, and MAFF that doesn't want vaccination and meanwhile there are people with rare breeds, flocks they've built up over many years and they cannot protect them properly and they are desperate about it. HUMPHRYS: Just a very quick thought. Haven't you rather shot yourselves in the foot politically. May the third might have been rather good for you. The longer it goes on now, the worse it might get for you, once the problem is sorted, people might say, well fine, let's go out and vote for the government. REDWOOD: Well look some of us are more worried about sorting out this dreadful national crisis. I don't know what the political effects would have been of going against that background, but what I do know is that we have a rural industry in collapse and people being horrified by the scenes of the funeral pyres and the mounting carcasses and the incompetence and the bumbledom in handling it all and let's get a grip on that and try and sort our country out. The transport doesn't work, the schools don't work, the hospitals don't work and now the countryside itself is in carnage. HUMPHRYS: John Redwood, thank you very much indeed. HUMPHRYS: Fewer of us vote in elections these days whenever they are held than ever before. The enemy for all politicians, for democracy you could say is apathy. So how can governments persuade us to vote when so many of us simply can't be bothered, either because we're disillusioned with the whole process or because we're happy with the way things are? The government has been considering proposals that would offer voters what amounts to a reward for turning out on polling day. But is one voter's incentive another one's bribe? David Grossman has been investigating. DAVID GROSSMAN: Britain's changed a lot since the dress code at polling stations was Sunday coat, best hat and medals. VOICE OVER: "Polling was exceptionally heavy in all districts. Well over eighty per cent of the electorate voted." GROSSMAN: In nineteen-ninety-seven turnout was down to seventy per cent. VOICE OVER: "Even centenarians exercised their democratic right." GROSSMAN: And at one recent by-election fewer than one in five voters managed to give the tellers anything to do. Some at Westminster warn of a crisis in democracy. Politicians are so eager to get into this place they can't really understand why so many of their compatriots can't even be bothered to vote. Some countries, like Australia, have compulsory voting. But here that's frowned on as being ever so slightly un-British. Voting is, after all, an expression of freedom, so forcing people to vote is somewhat contradictory and also potentially very unpopular. Instead the government is looking at ways of rewarding voters with inducements, in the jargon, positive reinforcement. But to critics the idea is nothing less than bribery. NIGEL EVANS MP: This is not the way. We've got to encourage people to go and vote in elections, particularly at the general election when you're electing members of parliament to the mother of parliaments, and we don't want to turn the general election into some glorified car boot sale where the government will be handing out gifts as a favour for the fact that you've gone to vote. GROSSMAN: The idea of rewarding voting has come from a report by a committee of Foreign Office mandarins. They were worried that Britain's reputation abroad and its ability to espouse democracy was being compromised by low turn out. British diplomats were warning their bosses in London that the UK was in danger of becoming ridiculous in the eyes of overseas governments. The Foreign Office Oversight and Liaison Sub-committee began work on a series of far-reaching and potentially very controversial proposals. They looked at using cash payments, gifts and even the lottery in an effort to get more people voting. Their hush-hush report coincided with the noisy bidding process for the lottery franchise. Minister told the frontrunner, Sir Richard Branson, that, if successful, he would be expected to give out free lottery tickets to voters - perhaps even as part of the ballot paper. SIR RICHARD BRANSON: The government made it clear to us that if we won it they wanted to make sure that we participated with them in using lottery tickets to encourage people to vote. In one sense I thought it was quite a fun idea, but it just, when you really examine it, I think it actually has rather serious implications about democracy and the way people vote and the freedom to go and vote and the reasons for voting. GROSSMAN: And what happened? BRANSON: Ah well as you know we didn't win the lottery, so we passed it over to Camelot and obviously it will be they who will be handing out these lottery tickets. GROSSMAN; But is there anything wrong with the idea? Victorian bribery laws ban gifts from parties but some experts say a voters' lottery would be okay. DR DAVID BUTLER: I think the lottery principle is quite reasonable and say, if you vote, you have got a chance of winning a prize, that is not going to subvert an individual voter to vote in a particular way. The bribes in the old days were to get you to vote in a specific way. This time it's just to get you, the proposition is just to get you to vote. That is much less objectionable. LEMBIT OPIK MP: I have got huge worries about this lottery ticket idea. Apart from the fact that you're more likely to be hit by an asteroid than to have the winning ticket, I'm worried that people will be more concerned about who wins the lottery than who wins the election. GROSSMAN: The government's also pursuing other ideas. The Chairman of the Home Affairs Select Committee, Robin Corbett, has been asked to examine a range of voter inducements such as gifts and cash. He thinks the idea makes economic sense. ROBIN CORBETT MP: That's the attraction of this because it costs the government nothing to do. You're giving people their own money back - while it looks generous on the one hand, it's not as if we have to open our wallets or the government has to open its wallet and put real money on the table. You're just recirculating what they've paid already, so, I suppose if you wanted to, you could get it back. You get the election out of the way and the next two budgets you could put a penny on income tax and get it back if it's cost you too much, so it's quite neat that. GROSSMAN: So what sort of gifts would work - would any of this lot wow the voters into turning up? Any of these, do you think, would help people to get out to vote, as a gift? UNNAMED WOMAN: No. UNNAMED WOMAN: The pineapple GROSSMAN: What about cash? UNNAMED WOMAN: Uh. GROSSMAN: You like the booze? UNNAMED MAN: Yes, oh yes, well. UNNAMED WOMAN: No, I don't think so. GROSSMAN: Nothing? UNNAMED WOMAN: Chocolates would possibly work, yes. UNNAMED WOMAN: No, I have no faith in anybody, I'm afraid. GROSSMAN: Bubble bath? UNNAMED PERSON: Laughs GROSSMAN: A hundred pounds? UNNAMED WOMAN: No, I'm a real cynic. UNNAMED MAN: Yes, I'll take cash GROSSMAN: A thousand pounds? UNNAMED WOMAN: The cans of beer might. GROSSMAN: Ten-thousand? But most reluctant voters probably do have a price. On the Record has commissioned some polling research to find out what it could cost. With ten pounds on offer eighty-three per cent of voters would turn out. If offered twenty pounds, ninety-one per cent would trip willingly into the polling stations. And fifty pounds would actually lead to a turn out of one-hundred-and-twelve per cent - clearly leading to concern about multiple voting. EVANS: That could be open to so much abuse, and I think what you might find is that if the cash sum is large enough, that you will find people registering in all sorts of seats around the country and voting on polling day all over the country just to get the money in. It will be one big cash bonanza for some people who will try and work the system to their own benefit. GROSSMAN: The idea is also not very popular with the Treasury. Giving each voter fifty pounds would cost the Exchequer over two-billion. True, Gordon Brown could put up taxes, but that would hardly incline all those hard won extra voters to vote Labour. Instead the government wants to harness the power of the private sector. In return for cash or products, private companies would be offered discreet and sensitive advertising at polling stations, or even on the ballot paper. GROSSMAN: On the Record has obtained three sample ballot papers which were designed by a prominent ad agency for government consideration. Two were given tentative approval. A third was completely ruled out. The choice of gifts is obviously vital - some Tories detect Labour seeking out electoral advantage with the products that are used to tempt voters. EVANS: This will be in the hands of the government and if they decide they want a higher turnout in certain seats, where they think it's marginal and they want their majorities either higher or indeed even to gain a seat, you could find that the gift is going to be very attractive to one group of people. Whereas in other seats where they really don't want a high turnout at all and they would far prefer people to stay at home, then you might find that the gift is not worth having - or indeed they, in some certain seats, they won't give a gift at all. And that's got to be unfair. GROSSMAN: But the government is trying to win all-party support for the idea by canvassing backbench opinion. OPIK: I was phoned up by a civil servant from the Home Office, who said, if they were going to dole out voters' gifts, would I prefer a box of chocolates or a bottle of sherry? GROSSMAN: And what did you think? OPIK: I said the chocolates, definitely. I'm not very fond of sherry. GROSSMAN: But what do you think of the idea, do you object to the concept? OPIK: I've no objection to the concept of sherry, it's the taste I don't like. GROSSMAN: We live in an increasingly busy and commercial age and voting can seem a bit dull by comparison. Low turnout is a problem for democracies the world over. But is bribery really the answer? CORBETT: This one we thought, dry sherry, for the older voter. GROSSMAN: The Chairman of the Commons Home Affairs Select Committee is very keen on incentives to vote. CORBETT: CDs GROSSMAN: He showed me a box full of suitable items. The key, he believes, is to make sure it's all done tastefully. CORBETT: While members of all parties felt this was very worthwhile to look at all these imaginative ways of getting people to exercise their vote, we had some doubts. What we didn't want to do was to make this look a complete joke. HUMPHRYS: David Grossman was reporting there. And that's it from On the Record on April the First. Don't forget our Web-site if you're on the Internet. Until next Sunday at the same time, Good Afternoon. 4 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.