Interview with John Prescott




       
       
       
 
 
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                                ON THE RECORD 
 
 
RECORDED FROM TRANSMISSION: BBC-1                              DATE: 20.11.94 
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JOHN HUMPHRYS:                         The Queen has spoken so we know what the 
government is planning for the next session of Parliament. But do we know how 
the opposition will oppose ... or what IT would do in the government's place? 
I'll be talking to John Prescott, the Deputy Leader of the Labour Party, that's 
after the News read by Huw Edwards.                 
 
NEWS 
 
      
 
HUMPHRYS:                              Not even the Tories' best friends would 
say that the Queen's speech was packed with exciting new legislation from 
beginning to end. Pretty boring. Predictable. Didn't give the Labour Party a 
lot to get its teeth into ... and if it hadn't been for Mr Major helping them 
out by making the European Finance Bill a matter of confidence in his 
government, heaven knows what they'd have all found to talk about. But they DO 
have a problem. The  one thing that influences voters most of all - the state 
of the economy - is moving the government's way and the Labour Party must have 
a strategy for dealing with that. In the old days, there'd have been no 
problem: if we tax people a little more we'll have a little more to spend. They 
don't say that any longer. They daren't. So how are they going to deal with this
dilemma?  
   
                                       Well, John Prescott has written more 
policy pamphlets than the rest of the Labour Party put together - or so it 
seems - and he is now the Deputy Leader.     
 
                                       Mr Prescott, good morning. 
 
JOHN PRESCOTT:                         Good morning.  Could I just correct one 
point there John? 
 
HUMPHRYS:                              Please do. 
 
PRESCOTT:                              We would very much look forward to 
debating the Queen's speech.  We think it's irrelevant to the nature of our 
problems, but I think the whole business of the Euro-finance was geared up to 
show that this Queen's speech was absolutely irrelevant, having had the Post 
Office privatisation torn out of it.   The job-seekers allowance is really only 
about reducing the unemployed figures by another hundred thousand, thousand, 
another fiddle, and saving hundreds of millions.  Privatisation of gas - I 
thought that was going to be competition anyway.  Now they're going to 
re-introduce competition, and then the cuts in the psychiatric hospitals, 
closing them down, putting them into community care - I mean what we're dealing 
with is problems that have come out of their kind of policies which we were 
against at that time, so we're looking forward to debating that particular 
Queen's speech. 
 
HUMPHRYS:                              Not so much a correction - more a small 
party political broadcast, but never mind, anyway .. 
 
PRESCOTT:                              That was a correction, I mean we do want 
to debate the Queen's speech, it's the Prime Minister who wants to get away 
from the Queen's speech, all this business about the Euro-revolt and 
threatening a vote of confidence if we actually defeat his European finance 
bill. That was to take the attention off a government that's run out of steam. 
 
HUMPHRYS:                              Well, let's talk about something that 
everybody's attention is on, including yours, and that's the economy, and the 
fact is, it is doing well isn't it?   We have growth, we have inflation under 
control, we have jobs being created.  Now that is going to give you a problem 
over the next couple of years. 
 
PRESCOTT:                              Yes, if the belief is that the economy 
has one objective, namely to achieve full employment we happen to believe that. 
If it's simply going to rely on growth, low inflation and reducing the public 
sector borrowing requirement, cuts in taxes, that will not provide the full 
employment that was creating many of the problems in Britain today. 
 
HUMPHRYS:                              But it's going in the right direction 
isn't it, another forty thousand jobs this last month? 
PRESCOTT:                              Well, I mean, I could argue about the 
fiddles if you want on that but there has been some reduction. The point is 
those in work have not being going up, so something's happening.  They're 
vanishing from one end of the spectrum and actually appearing in another, so 
want I want to say is that if you look at the nature of the problem in the 
nineteen-nineties, it's so fundamentally different from the rest of the period 
that we've gone through, and you've got to deal with this feel-good factor.  
Feel-good, feeling insecure, it's all to do with mass unemployment, and this 
government says, even on it's own fiddled unemployment that they're going to 
see unemployment of two to three million into the next century.  Now I think 
that's quite disastrous, and governments have got to address their mind to 
that.  Growth won't provide all the jobs, and low inflation's not going to 
provide it either, and the trickle down from tax cuts which they now seem to be 
shaping up themselves up for is not going to solve it either. 
 
HUMPHYRS:                              You say fiddled figures on unemployment, 
but you can't knock the fact that they are coming, that the figures are coming 
down.   As I say another forty thousand the last time we've seen cut after cut 
after cut, for month after month after month. 
 
PRESCOTT:                              Yes, but John this is pretty well 
planned.  I mean some if comes from increasing...(interruption) ...no, no, no, 
no, this government won't believe in planning anything would it, but I mean if 
you'd look at what is happening to the job seekers allowance, even the 
government admit it will reduce the unemployment figures by a hundred thousand, 
because it's going to lay down now that you can't have the benefits beyond six 
months. The National Insurance system to which we all contribute is entitled to 
benefits.  They've got the benefit from twelve months to six months, not only 
have they saved hundreds of millions of pounds, but for the next two years 
they're going to reduce the unemployed figures by a hundred thousand, not a 
hundred thousand people getting more jobs, they're just driven off the 
register. 
 
HUMPHRYS:                              What do you reckon the real unemployment 
rate is now?   How many people do you reckon are out of work.
                                         
PRESCOTT:                              I don't really know.  It's considerably 
higher than it is at the moment, and if you used .... 
 
HUMPHYRS:                              Well, half a million higher? 
 
PRESCOTT:                              Well, if you use the criteria we had in 
1979, instead of it being two-and-a-half million it would nearer to 
three-and-a-half million.  Everybody's agreed on that and the changes that have 
taken place, but to my mind it's millions.  What worries me, not so much the 
exact definition at the moment, but are we going to enter the next century, the 
next millenium with over two to three million unemployed?  That's going to 
create tremendous problems on feel-good, it's going to do - morally it's very 
bad to have such high levels of unemployment, it's inefficient and it's 
creating havoc with the public finances.  Now the government have got to make 
up their minds how do you order public finances to sustain a sufficient growth 
and a development in jobs if government has a responsibility to provide 
employment, because I happen to believe they do. 
 
HUMPHYRS:                              Exactly the problem that you yourselves 
are going to be faced with, because you're not going to be allowed a great loss 
of money either. 
 
PRESCOTT:                              I agree.  That's a very important point 
that we actually believe you can get more actual people at work and we've given 
some of those ideas, and Gordon Brown will be saying some more this week, but 
one I've given to you before and still stands the test though government attack 
it, the six billion pounds that are in the housing capital receipt funds, and a 
quarter of a million building workers on the dole costing us two-and-a-half 
billion pounds - quite frankly you can bring those together, not only would it 
put unemployed people back to work paying tax, but it would reduce the 
something like ten billion pounds we've paid to the private hotel business to 
take all those people who are homeless on bed and breakfast.  Now, it's those 
kind of collective decisions, those decisions that have to take into account 
how much the state pays, how much we pay for the dole, how much in housing 
benefit, how much it's costing us to keep people unemployed, if you've idle  
resources and people are out of work why don't we put them together.  There's a 
lot more things you can do, but that's certainly one of them.
 
HUMPHRYS:                              You say there's a lot more things you 
can do.  I mean the government argues about that anyway, and they make the 
point, the Treasury makes the point ..... 
 
PRESCOTT:                              Yes because they don't choose to do it. 

HUMPHYRS:                              ......  that it adds to borrowing, but 
alright, anyway let's ... 
 
PRESCOTT:                              No, now that's a very important point 
there John.  It adds to borrowing because the British government is the only 
one that defines the public sector borrowing requirement as it does and indeed 
I see in the paper today there's a letter here on the - a letter from Mr Hunt 
to the Prime Minister about Post Office privatisation.  If you'll allow a 
little bit of the personality cult, it says that the press....
 
HUMPHRYS:                              I'm not sure that I can stop it. 
 
PRESCOTT:                              Well, the Precott option is not 
acceptable.  What was the Prescott option about the privatisation of Post 
Office, was simply to allow them to borrow against their assets so they can 
make the investments in their future and still be publicly owned.  They make it 
clear they don't want to do that for ideological reasons, even though Mr 
Heseltine does believe that in fact they need the money to invest.  Now it's 
that kind..... 
 
HUMPHRYS:                              It's not often that your name gets 
involved in a letter ..... 
 
PRESCOTT:                              No, but it's that kind of nonsense 
really.  I you want the Post Office, the public sector to expand it'll give us 
more jobs, it'll give us wealth, it'll give us the tax creation powers that 
will enable us to use money to put people back to work.  It just needs a bit of 
common sense and not the ideological nonsense that this government's identified 
with. 
 
HUMPHRYS:                              Alright, how else are you going to 
create those jobs?  You've talked about using those capital receipts from 
council houses. 
 
PRESCOTT:                              Okay, I'll give you another one if you 
... any more, for...interesting is the one on the railways.   We talk about 
Railtrack.  Now the priority is not spending hundreds of millions and paying 
accountants to devise a way to privatise Railtrack.  It's actually to invest in 
those industries and invest in the railway industries.  Again I suggested you 
could lease them, so the taxpayer doesn't have to pay the extra money.  You 
borrow against the assets, whether it's stations, railway lines, or trains or 
whatever it might be, we then get people in work in York and Crewe building the 
trains, so that we don't have twenty-five year old trains down in network 
South-East - when I was stuck on one last week for two hours, fifty yards 
outside Victoria Station.  That is - that not only provides jobs, it rebuilds 
our manufacturing base.  If we don't rebuild our manufacturing base in this 
country whose investment levels are no more than they really were in 1979, then 
we're in deep deep trouble. 
 
HUMPHRYS:                              What else, what else, because none of 
this is adding up to the kinds of figures it has to add up to? 
 
PRESCOTT:                              Well, we're not going to be actually say 
to you, here's the two-and-a-half million jobs.  What we can do, and this is 
important John - this government rejects the view that governments can 
influence the level of employment higher than that that is dictated by the 
market.  We say it can, and some of the measures i've just given you, give an 
indication how you can do that.  If we can establish in the beginning that 
government is a force for good, that it can increase the level of employment, 
that it can get people paying tax and contributing to the wealth in society and 
giving resources that are so necessary for government to meet the kind of 
requirements in our welfare system that any modern economy has.  The other one 
I should have given you was Europe.  That's a controversial one.  the 
infrastructure funds that were agreed at Edinburgh, the resources that are 
available would allow Europe to borrow, to invest in a channel Tunnel rail link 
or invest in the North-west coast line with all the demands for the 
manufacturing that comes from that, and curiously enough that money would not 
be considered part of the public sector borrowing fund.
 
HUMPHRYS:                              But you've already conceded that you're 
not going to create the jobs out of investment, purely investment in these 
terms, in the infrastructure. 
 
PRESCOTT:                              That's a very interesting point about 
the definition of investment John.  If it's investment in the training of our 
people I think we can, and then in...
 
HUMPHRYS:                              Naturally, it takes a long time as 
you've accepted, but there are jobs to be created over a long period of time.
                                      
PRESCOTT:                              But I think what we have to accept which 
is a very important point, that we mustn't stifle investment in manufacturing 
simply to keep people in work.  It's important we have the efficiency, the 
research and development and the investment in those industries, because many 
other countries who've got more successful economies have done it by making 
sure its manufacturing is very effective, very efficient and well invested in.  
We haven't done that.  That creates the wealth - wait a minute - that goes on 
to investment in the community to meeting services.  There are a whole range of 
things that we need to do in education, in the health services, in meeting 
community care.  There are all sorts of things that are still real jobs, 
meeting real needs.  We need to redefine the social productivity concepts in 
the economy. 
 
HUMPHRYS:                              But we are still talking about a very 
samll percentage of what you say is three-and-a-half million people who are 
unemployed. 
 
PRESCOTT:                              Why don't you .........let's have a go 
at that.  I mean I noticed in the paper today.... 
 
HUMPHRYS:                              Well, by your own definition, I mean you 
said we're not going to create all the jobs that we need. 
 
PRESCOTT:                              Well, then let's just be a bit more 
specific again.  What I said, in the first term of a Labour government you 
couldn't create three and four million jobs, and that's absolutely right and 
nobody would believe us.  I need to establish the fact though that governments 
can make a difference.  I notice in the paper that the environmental groups 
following on the international reports, show they believe you could get seven 
hundred thousand jobs in about the next ten-fifteen years. 
 
HUMPHRYS:                              You're going to adopt the Green policy 
then.  You're going to take that ... 
         
PRESCOTT:                              Well, we have one.  Gordon Brown's been 
puttng the environmental, don't let's knock it, it's a very important area. 
 
HUMPHRYS:                              I'm not knocking anything, I'm...
 
PRESCOTT:                              No, no, but you knwo what I mean John.  
There are important areas that we have to look around, because if the market 
could create its level of investment and jobs that it creates, and government 
have to do more than the market, it has to look to those areas that for one 
reason or another the market has not sought to invest in that could create work 
and meet real needs and that's the challenge for government
                                                       
HUMPHRYS:                              But there are other ways that you can 
create jobs, are there not? 
 
PRESCOTT:                              Yes, I think there are - I've given you 
quite a few of them to get started with. 
 
HUMPHRYS:                              It's just that what you haven't given me 
is the suggestion, and you made it in an important speech recently that society 
should tolerate relative inefficiency in labour intensive sectors -  I quote 
from your speech. 
 
PRESCOTT:                              I think I was quoting what the Japanese 
economy had done.  I've looked at a number of economies and said to them, why 
are some more successful in retaining high levels of growth, wealth creation 
and also creating an awful lot of jobs.  When you look at Japan, it was very 
noticeable that they have higher levels of productivity than we have in our 
manufacturing, a lot less lower productivity in the community care and 
community facilities.  Now what I was suggesting in that , it seems sometimes, 
-take education as a good example.  We tend to feel that economic productivity
in this country is that less teachers involved and bigger sized classes, you've 
achieved your economic productivity, you're getting it for less, but we know 
that smaller classes as private schools all too often show us, smaller classes 
with more teachers has a greater productivity for the child.  It's their 
education, it's their investment, and we're all agreed that's a critical area 
for us, intelligence and investment in it. 
 
HUMPHRYS:                              So more teachers? 
 
PRESCOTT:                              Well, you could well say that.  Yes, you 
could get better response from education if we could have smaller classes.  Now 
how you organise that, whether that means more teachers or the organisation of 
education is quite important... 
 
HUMPHRYS:                              But that doesn't fit into this category 
of inefficiency does it, relative inefficiency, and that is your phrase isn't 
it, not mine. 
 
PRESCOTT:                              Well, let me just tell you.  I just used 
the teachers as one example.  I mean you could use it for nurses for example 
in hospitals.  It's said for example .... 
 
HUMPHRYS:                              Or porters maybe? 
 
PRESCOTT:                              Well, you can go through a number of 
areas but take hospitals - we now know there are twenty five thousand nurses 
less but twenty five thousand managers more because we've simply chosen in the 
Health Service to go for layers of bureaucracy in order to meet a market 
ideological requirement that there should be some competition.  I'm sure people 
in this country would prefer to have more nurses on the wards than more 
accountants doing the job to meet the market system. 
 
HUMPHRYS:                              And what about local authorities?  More 
road sweepers on the streets, maybe?  More people cutting the verges instead of 
spending fifty thousand quid on a high powered mower, or something? 
 
PRESCOTT:                              Or somebody looking for reducing police 
on the beat so we get less crime.  But if you look at the... 
 
HUMPHRYS:                              But that's the kind of thing you're 
looking at, is it? 
 
PRESCOTT:                              But, no, I mean, I think governments 
must open their minds to all the possibilities.  But the Queen's Speech says, 
doesn't it?  It says that we're going to do more in community care to deal with 
those people who have been discharged from psychiatric hospitals because the 
Government are saving money on closing down hospitals, discharging them into 
the community - and there's something to be said for the argument - but if you 
don't give the resources to the people in the community then you have those 
terrible incidents that we've found of people who shouldn't be released into 
the community - in some cases have been involved in murder and rape, just the 
odd cases but enough to cause us concern; the Queen's Speech now is suggesting 
more resources should be found in the community to deal with this problem.  Now 
they're doing it themselves.  Let me give you ... 
 
HUMPHRYS:                              Is that what Tony Benn means when he 
talks about 'the community'? 
 
PRESCOTT:                              Well, it's very much identifiable as a 
community, whether it means in this he's identifying a collective provision, 
whether by the state or by the community.  But let me give you another one.  
The local authorities now are producing what they call city challenges and 
regeneration schemes.  The Government has actually gone to local authorities 
and said: Can you put packages together with the public and private sector - 
something Labour authorities were doing ten/fifteen years ago - put them 
together and create work, meet real needs?  Now the Government's actually doing 
that.  The only problem is they get a hundred local authorities to produce 
schemes which are effected and only pinch ten of them because they are not 
prepared to put the resources into it.  But they don't doubt that local 
authorities can contribute to develop the economic prosperity, developing 
(phon) partnership between the public and the private sector and meeting real 
needs and jobs in communities. 
 
HUMPHRYS:                              So you would take another look at 
competitive tendering, for instance? 
 
PRESCOTT:                              Yes, I think there is a lot to be said 
for that.  I mean, that's the same case as the minimum wage argument.  If you 
look...I want efficiencies, let me make clear about that and that's what the 
Audit Commission can do and can go in and say, if you're producing a service, 
for example rubbish, collecting rubbish, or some services which is less 
efficient than others, then we're entitled to say we want the maximum 
efficiency for public money. 
 
HUMPHRYS:                              But you don't create the maximum 
employment though, do you. 
 
PRESCOTT:                              Well, let me just ask you, let me just 
give you the point.  And if you look at the minimum wage one, because what has 
happened with competitive tendering is they've done it at the expense by 
replacing full-time by part-time labour, cutting out the kind of employment 
conditions that are involved.  Now we believe that's wrong and the consequence  
is you begin to pay more for it, either in the quality of the service or indeed 
with minimum wages.  If you look at the wage councils that have been reduced by 
this Government believing it would produce more jobs, it hasn't produced more 
jobs, it's forced the wage levels down from two to three pounds down to a 
pound, and lo and behold what has happened?  The taxpayer is now paying 
something getting on to two billion pounds - which has doubled in a number of 
years - to actually pay for low pay - in industries which used to pay higher 
level till they deregulated it!  Why should the taxpayer find up to two billion 
pounds in family credit when that money could be used to get people back to 
work instead of subsidising poverty pay? 
 
HUMPHRYS:                              All right, but what you're talking about 
- and let's be quite clear about this - is using local authority revenue, for 
instance, to create jobs.  And you are unashamed about that.  You are saying 
that if you have to tolerate certain inefficiencies to do that that is 
absolutely fine. 
 
PRESCOTT:                              No, no, I say that in meeting real needs 
the manufacturer's got to create the wealth, right.  In all areas.  How do you 
measure the productivity of a nurse?  How do you do somebody in community care? 
How do you do it in teaching?  
 
HUMPHRYS:                              Yeah, but you've given me some 
examples.. 
 
PRESCOTT:                              But we already do that at the moment.  
We don't measure it totally by that narrow criteria of economics.  What we do 
say: it's the service the community wants that we need to provide and we should 
do it efficiently.  Nobody's suggesting that we can live without them. 
 
HUMPHRYS:                              Now, this is where I'm puzzled because 
you say we should do it efficiently and yet you use this phrase 'relative 
inefficiency' in this speech. 
 
PRESCOTT:                              Well let me have a go at some of them.  
If you look at the competitive tendering business in some cases where it's gone 
to part-time labour, that means they avoid paying the National Insurance 
payments, right, they use people who are going to take it as a second job which 
is often the case, or forced to live on poverty pay, which the taxpayer has to 
make the difference up on.  If that was full-time work, meeting the employment 
conditions and the proper wage, there would be less burden on the taxpayer.  
Now I don't think that's a very efficient way of producing work. 
 
HUMPHRYS:                              All right, and if those full-time 
workers ended up not working a full forty hour week - maybe they only had 
enough work to do thirty hours a week or something - that would be relative 
inefficiency but they would be in employment and that would be okay from your 
point of view because that would be... 
 
PRESCOTT:                              Well it's also expensive from the 
taxpayer's point of view because if you make a judgement that income shouldn't 
fall below a certain level - as happened in some of these industries - the 
taxpayer comes along with a family credit and it's now doubling.  It's the 
stupidity of the Government's view about what it does with public finances.  If 
you look at the housing at the moment, which is a similar case:  local 
authorities used to provide it - they've stopped them building it, pass it over 
to the actual private sector, believe in a market rented theory.  We're now 
paying billions of pounds to make the difference up to pay for housing 
accommodation far more expensive than could have been provided by the public 
sector. 
 
HUMPHRYS:                              So you would use public finances to 
create jobs?  Let's be quite clear about that. 
 
PRESCOTT:                              It's already using public finances. 
 
HUMPHRYS:                              Right. Alright. You would use 
more of it? 
 
PRESCOTT:                              Well, I mean, it's a judgement 
governments have to make between the balance.  The Housing Programme is public 
money.  It's public money.  Local Authorities don't generate their own money, 
they raise it from people, either from governments centrally giving it to them 
as their contribution to local authority financing or by a council tax, so 
public money is used by both local governments and governments.  What I am 
saying is, we shouldn't be indifferent to the consequence of having a narrow 
pursuit of costs.  
 
HUMPHRYS:                              Yeah. 
 
PRESCOTT:                              Give you an example.  Let me give you 
one: The Treasury - the Treasury wanted to save two hundred million pounds on 
the bus industry, on transport subsidies.  So they privatised it and they 
deregulated it.  What happened?  You get a lot of buses at the peak time, 
nothing on the Saturday and Sunday, a breakdown in public transport system - 
which they are now trying to reverse.  But what happens?  The Treasury save two 
hundred million pounds but it wiped out the whole manufacturing bus industry - 
which is an important area for us - because nobody could afford to buy buses 
because they'd introduced deregulation and competition. 
 
HUMPHRYS:                              Right.  
 
PRESCOTT:                              Whatever you do has a consequence for 
jobs and public expenditure. 
 
HUMPHRYS:                              And you would redress the balance by 
using public money to create jobs?  That's- 
 
PRESCOTT:                              Well if we put employment at the top of 
the list, as we do, 
 
HUMPHRYS:                              Which you said you do - yes.  
 
PRESCOTT:                              and if we say that government can effect 
a higher level of employment than the private sector can, then in the provision 
of those services it becomes quite important... 
 
HUMPHRYS:                              There's no escaping it, is there? 
 
PRESCOTT:                              Well, in the provision of services, 
public money is used in housing, in post offices.  In the post office we raise 
a certain amount and they take taxation from the public services.  Transport - 
we already are going to agree that a billion pounds, whether it's publicly or 
private, will be pumped into the railway system whoever owns it.  So we have to 
ask ourselves: "Why do we give/put public money in?  Is it good value?  And 
does it contribute to increasing employment?" 
 
HUMPHRYS:                              But you've got to get - and it is your 
absolute number one priority, you've made it clear time and time again that 
full employment is your priority and you told me there are three and a half 
million people out of work in this country.  Therefore, a lot of jobs have got 
to be created.  You are quite prepared to say on behalf of the Labour Party, if 
it means spending more money to create those jobs - and you put the word 
'inefficient'... 
 
PRESCOTT:                              .........  Using it differently than 
we've got at the moment.  This Government has wasted billions on all sorts of 
things.  I will leave aside the tax cuts because you and Gordon Brown have had 
exchanges about that.  If I take the point ... or tax avoidance ... If I take 
the way they've spent money on the poll tax where ten billion is lost, hundreds 
of billions on the preparing for the privatisation of railways.  I could show 
you that we could use money much more effectively, first point.  Secondly, if 
these industries want to borrow to invest and create jobs I've told you, if we 
change the Treasury rules the Prescott Option in the letter that's here for the 
Cabinet creates work and at no cost to the taxpayer. 
 
HUMPHRYS:                              So it wouldn't cost an extra penny?  
None of this (break in tape). Well you're talking about a specific case - 
dealing with the post office - I'm talking about three and a half million 
people out of work in Britain today and you're saying... 
 
PRESCOTT:                              And, how much does that cost us? 
 
HUMPHRYS:                              Well, that isn't the point because 
sooner or later you may be able to create the jobs long-term but in the 
short-term... 
 
PRESCOTT:                              No, no, no, John, you know it costs us - 
under Government's own admission - something like twenty five billion pounds to 
keep this level of unemployment we've got at the moment.  It's just absolutely 
stupid to pay to keep them idle when you can possibly pay to put them back to 
work, paying tax and National Insurance. 
 
HUMPHRYS:                              But it costs money to... 
 
PRESCOTT:                              It's just sound common sense. 
 
HUMPHRYS:                              In the long run, of course, but it costs 
money...it is going to cost money to get them back into work.   
 
PRESCOTT:                              Yes, but money that's being wasted can 
be translated into effective use of putting them back to work. 
 
HUMPHRYS:                              And that's going to deal with this three 
and a half million.  It isn't credible, is it? 
 
PRESCOTT:                              No I don't.  I wanted to establish the 
one simple point that government can make a difference to the level of 
employment. 
 
HUMPHRYS:                              Make a difference, but you're not 
talking about making a difference, 
 
PRESCOTT:                              No. 
 
HUMPHRYS:                              Mr Prescott, you're talking about 
restoring-
 
PRESCOTT:                              Yes, I know.  
 
HUMPHRYS:                             -full employment to this country - 'my 
number one priority', not as 'an objective of government policy', 
 
PRESCOTT:                              No, no.  
 
HUMPHRYS:                              -as 'our number one priority'  'THE 
number one priority'. 
 
PRESCOTT:                              Well a high priority, but a government 
policy.  
 
HUMPHRYS:                              Oh, no, no, no.  You've not said a high 
priority- 
 
PRESCOTT:                              I'm not going to play around with the 
priority and I'm not trying to indicate it's any less of a priority.  
 
HUMPHRYS:                              Well, OK.  Fine.  But, you say- 
 
PRESCOTT:                              I am not playing around with words here. 
 
HUMPHRYS:                              -'a priority' and in the past you've 
said 'the priority'. 
 
PRESCOTT:                              I know, but what I did make clear - well 
'the priority' I'm not going to quibble about that, but I said also you can't 
get it in five years.  I seek to achieve and the Labour Party would want to 
achieve in a Labour Government that a government can make a difference to the 
level of employment.  This government rejects that view.  In its evidence to 
the Commission it says: "Governments can't influence the level".  We dispute 
that. 
 
HUMPHRYS:                              Right.  
 
PRESCOTT:                              If we establish that more people can get 
back to work, paying tax and National Insurance, which in some cases won't cost 
us money, but the reorder of priorities and policies and different forms of 
expenditure which doesn't cost us a penny more, then I think we will have said 
to the people in this country: Governments can do it.  Now it's much more 
difficult, get onto the next stage so everybody can get back to work. 
 
HUMPHRYS:                              And, as an earnest of your intent you do 
want there to be a target set by an incoming Labour Government? 
 
PRESCOTT:                              Well a target in the sense that I don't 
think you could say it would be one million/two million or whatever it is. 
 
HUMPHRYS:                              But, you want a target? 
 
PRESCOTT:                              I want to establish the principle.  I 
want to look at the areas of housing.  For example, if I say we are going to do 
housing and it's our Party's policy at the moment, we've got a quarter of a 
million building workers, that amount of money buys you a proportion of houses 
and it requires so many of building workers.  We will look at those blocks to 
see just how we can contribute to that.  Gordon Brown this week will be setting 
out some of these figures and some of these ideas, for example, of the way 
forward within government expenditure at the present time is how you can get 
people back to work. 
 
HUMPHRYS:                              So you will add up all those figures and 
you will say, before the next election, this is the target.  I know you are not 
prepared to give me a target now because if you were I'd ask you, but you 
won't, so... 
 
PRESCOTT:                              No, I am not the Labour Party, I may be 
a Deputy... 
 
HUMPHRYS:                              Well, Deputy Leader... 
 
PRESCOTT:                              Well, I'm fine but we are the party that 
make our decisions through policy decisions and we are going to be ... No, I've 
always said this, John.  We have to go through... 
 
HUMPHRYS:                              You said you want a target.  Clearly. 
 
PRESCOTT:                              I believe there's an argument for 
targets, yes, but let me tell you the process of which we are embarked upon to 
do.  We agreed that we would take our economic policies through our commission 
for a statement next year.  These arguments will take place.  I'm committed, 
the Party's committed, to reducing mass unemployment and giving it as an 
objective to government to say to this country, governments can make a 
difference to the level of employment and by God we intend to do it. 
 
HUMPHRYS:                              John Prescott, thank you very much. 
 

 
 
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