>> and now to london for prime minister's question time live from the british house of commons. every wednesday while parliament is in session prime minister david cameron takes questions from members of the house of commons. prior to question time the house is wrapping up other business. this is live coverage on c-span2. >> about the credibility of these elections. >> order. let's have a bit of order for the former chairman. >> my right honorable friend of its the first u.k. minister to have visited burma for a very, very long time. could he please state, take this opportunity to update the house the outcome of the visit and in particular his discussions? >> well, mr. speaker, it does appear the political tech not plates are moving in burma. the government has made it clear it is committed to releasing the

political prisoners. in particular one of the leaders of the students of ata and they're also committed to the 48 by election proceedings and the party have said they will stand in their elections and we're waiting, and credible elections with fair and open result from that. >> order. question for the prime minister. andrew roslindale. >> thank you, mr. speaker. this morning i had meetings with ministerial colleagues and others, and in addition to my duties in this house i shall further such meetings later today. >> mr. speaker, the british people want to see two things from this week's european summit. firstly, a resolute and uncompromising defense of britain's national interest, and secondly and into the disastrous bureau crisis currently depart

-- party opposite still wants to join. will the prime minister to britain proud on friday and show some spirit in brussels? >> i can guarantee -- [inaudible conversations]

>> we have a problem with our live coverage. we're working on an plan to return to the event shortly.

>> we have fixed the problem and never turn your life life program. >> the opportunity of treaty change would mean in the future the repatriation of power. that was six weeks ago. today he writes an article in the times about it, not one mention of the phrase repatriation of the power. why does the punisher think it's in the national interest to tell us backbenchers one thing, to quell a rebellion on euro, until european partners another? >> i don't -- yes, what we want to do specifically and particularly in the area of

financial services with this country has a massive national interest. let me remind them it is 10% of gdp. it is 3% of our traits are sick and 7% of u.k. employment. i want to make sure we have more power and control here in the u.k. to determine these things. that is in complete contrast to the party opposite that gave away power after power. [cheers and applause] >> they gave up our power and they made a chilling the bailout fund. we've had to get out of the bailout fund. they gave up a rebate and get nothing in return. we managed to freeze the european budget. you have one party, one government that defends britain's interests and another that always surrenders it. >> ed miliband. >> mr. speaker, i think the short answer is -- >> order. i say to the usual, predictable

noisy tendency when i said to the other side a moment ago, people must be heard. that's what will happen, however long it takes. ed miliband. >> mr. speaker, i think the short answer is that six weeks ago he was promising us backbenchers and begging for europe. now he has just reduced to hand-wringing. that is the reality from this prime minister. and the problem for britain, and the problem for britain is that the most important european summit for generation, the matters you truly for families and businesses up and down the country, the prime minister is simply left on the sideline. that is the truth only the prime minister caught between his promises in opposition and the reality of government. that is why britain is losing out in euro. >> i'm afraid even the best scripted joke on handbag isn't going to save his leadership. [laughter]

[shouting] >> he talks about being isolated. let me just explain to him where we would be if we adopted labors policy. if we adopted your spending and your deficit policies, and if we're in the euro, what we would find it is i wouldn't be going to brussels to fight for britain, i would be going to brussels to get a bailout. [shouting] under the proposal, under the proposal being put forward, labor would put britain in such a bad position that the tax changes would be written by the shadow chancellor. they would be written by the german chancellor. [shouting] >> mr. andrew tyrie. there's a wide view on europe's -- one can sense that since the response, will the prime is to take the straightforward message we tested european council to vote one thing, most likely

choose in the house of commons would be the perception of a calculated assault from brussels? not even in their interest on the well being of u.k. financial services industry, and on the 1.3 million people in all our constituencies who work in the? >> the honorable gentleman is entirely right. of course, we want to see a greater rebalancing of our economy and we want to see more jobs in manufacturing in aerospace and technology but the economy that we inherited is very dependent on financial services. i do think we should at least celebrate the fact it is a world-class industry, a world-class industry not just for britain but actually for europe. it's vital we safeguarded. we do see it on the continued regulatory attack from brussels, and i think there is an opportunity, particularly if there's a treaty at 27 to ensure some safeguards, not just for that industry but to give us greater power and control in terms of regulation here in this

house of commons. and i think that is in interest of the entire country and something i will be fighting for on friday. >> does the prime minister agree that the recent escalation of industrial action in the public sector which incidentally in my part of the world was not, is a result of genuine anger -- [inaudible] and unfair action which is making people on low and middle incomes pay for the aransas the stakes of the top? >> i'm afraid i think the honorable lady is just plain wrong, because the lowest paid workers are not being asked to contribute more to their pension. and in terms of fairness, in terms of fairness let me just make this point. under what we are offering, a primary school teacher earning 32000 pounds a year could receive a pension worth 20,000 pounds a year. now, a private sector worker, remember the people are putting

their money into these pensions, a private sector worker would have to pay dirty 8% of their salary. almost half of their salary to get an equivalent pension. now, of course, there's an issue of fairness. we must lay fair by public sector workers but we also must be fair to the private sector who are putting their money into these pensions. >> steve baker. >> does my right honorable friend agree with me that it's time for this country to lead europe into the hope and potential of a new post-bureaucratic age? >> well, i do think there are opportunities for britain in europe. i think we should start from the premise that it is in britain's interest to be in the single market. we are a trading nation. we need those markets open. we need to be able to determine the rules of those markets. but as your changes yes, of course there are opportunities but the first priority of the end of this week must be to make sure that the eurozone crisis that is having such a bad effect

on our economy is resolve. but at the same time we should be very clear about the british national interest, safeguarding the single market, financial services, looking after the interest of u.k. plc. >> can the prime minister tell us if you were having usual christmas bash with rebekah brooks and jeremy carson? [shouting] and if so, if so, will they be talking about just how out of touch they are with british public opinion? >> i seem to remember the annual sleepover was with the former labour prime minister. [shouting] and you know, i will be having a quiet family christmas. >> mark pritchard. [inaudible] is it not the case that bailout

after bailout of the eurozone would not save europe or in the eurozone, making europe more competitive, reducing its hygienic costs and cutting regulation and red tape from business? >> i think the honorable gentleman is entirely right. i can quite understand why leading members of the eurozone like for instance, the germans want to see tougher fiscal rules about budget deficits for eurozone members. but i think it's absolutely right to point out that the heart of the crisis is actually caused by current account deficits in some countries and large current account services and other state in less resolve the competitiveness problem at the heart of the euro crisis this crisis will keep recurring. so our argument has been throughout yes, you need tough rules on budget deficits, yes, you need to have the institutions of the euro including the european central bank acting in concert and acting strongly, but you've got resolve the competitiveness problem at the heart of the single currency in order to deal with this crisis and i will

continue to make those points on thursday and friday. >> can the prime minister confirm that next year according to the institute of fiscal studies as a result of his economic policy, the poorest third of families will lose three times as much as the richest third? >> no, his figures are wrong. if you take, if you take all the things that the government has done, which is the right way to measure this what you find is that the top 10% see losses that is 10 times greater than the bottom 10%. and i believe that is there. and i believe a point that hasn't been properly understood that is important is if you take the richest 10% in our country, they not only see the biggest reduction in their income in cash terms, they also see the biggest reduction of their income proportionately. so we are being fair pick it is incredibly difficult to do with the debts and the deficit that the honorable gentleman whose party left behind was determined to do in a way that is fair.

>> ed miliband. >> tragic is that the wrong again. the figures are there. the figures are there. the figures are there and the poorest third are losing far more than the richest third. and, of course, he used to say i'm not going to balance the budget on the backs of the québec is not balancing the budget, though, he's right, he's not balancing the budget mr. speaker. 158 billion pounds more borrowing. [shouting] but he is -- mr. speaker, but there is one group to give him credit, that he is making come he is easing the pain for. and i don't think mr. speaker, it has gotten the publicity he deserve. he is the delaying a year the tax on a private jet, mr. speaker, at the same time at picking on the poorest families in this country. now, can he confirm, can you confirm that a working mother earning 300 pounds a week it seemed v.a.t. go up, or tax credit cut, to child benefit

frozen and their maternity cut? >> he had 13 years to tax private jet. [shouting] and a former labour leaders are jetting around in them. [laughter] we will attack them into years. he quotes the institute for fiscal studies but let me remind you what the institute for fiscal studies said about labour's plans specifically. labors policy would lead to, ethical, even higher debt level over this parliament. i know, mr. speaker, they don't like to hear it went their own policies are taken apart. [shouting] >> calm down. they don't like to hear. [shouting] spent what i simply said it would is i want to get down the order paper. let's hear it. >> let me just explain what the eye of asset to his plans higher

debt than those will, in fact, see. that is the truth of the. if you want the steamers were getting the economy by the interest rate you have to stick to the plans we have set out. they are is not a party in europe apart from moldova and communists to back his party's plan. >> ed miliband. >> mr. speaker, he doesn't understand that he is cutting too far too fast and that's why we have problems in our economy. he doesn't want to tell us what the iss says about his plan. he's the prime minister after all, mr. speaker. the new tax and benefit measures, the new tax and benefit measures are on average a take away for lower income families with children. the figures speak for themselves. his changes are hitting women twice as hard as men. isn't the truth that he's the first prime minister in modern times to take from women and children first? >> i have to say his soundbites get weaker and weaker as his

leadership gets weaker and weaker. that is the truth of it. if you look at what we have done, lifting 1.1 million people out of tax, that is mostly women that benefited if you look at the increase in attention, five pounds starting next april that will benefit mostly women. if you take the issue public sector pension where we're helping the lowest paid in the public sector that will help women. yes, we are giving the economy a stimulus by keeping our interest rates low. we have interest rates at 2% while they are at 5% in italy, 5% in spain, 30% increase to if we followed his advice we would have interest rates rocketing, businesses going fast, more people out of work. that is what labour offer and that is what they will never be trusted with our economy again. [shouting] >> can i tell the prime minister that the small indian enterprises in my constituency are still having great difficulty accessing reasonable finance.

a major contributor to that is lack of competition. will the government consider breaking up the nationalized bank in order to be able to create more competition on the high street? >> well, i do think would've opportunities to increase the competition on the high street and as we look to return to state banks back into the private sector will have further opportunities. we've managed to take one important step forward which is of course is to get northern rock back out their lending to businesses and households properly established in the northeast of england. >> close question, jeremy corb corbyn. >> not here. mr. john berry and. mr. speaker, our history at repatriating powers back from the e.u. is not a happy one. may i therefore suggest a fundamental renegotiation of our relationship with the e.u. a stone free trade, growth and

competitiveness which other countries enjoy, and not political union and deadweight regulation. does the e.u. summit, a defining moment. will the prime minister seize the moment and? >> i'm a little bit more optimistic than the honorable gentleman. actually the bailout power that the last government giveaway we are returning to the united kingdom via the treaty. so we have returned to power and recently we've just one exemption from all e.u. legislation to make sure from january 2012 microenterprise will not that any new e.u. regulation at all. but in answer to the question are going to go in there and fight for british interest on first and fight, yes, we will pick but let's be clear, there's the option of a tree at 27 where we have the ability to say yes or no, and as a result get a price for that. but there's always the possibility of the euro zone members at 17 will go ahead and

form a treaty of their own. again, we have some leverage in that situation because they need to use of e.u. institutions. but we should recognize the exact the what our leverage is an make the most of it. >> thank you, mr. speaker. last year the prime minister's -- [inaudible] and he is either on all these issues and the justice secretary has said this agenda is not realistic anyway. does the prime minister regretted leading his party up the golden path and -- [shouting] >> between the genius manifests a potentially vetoing a treaty that may be essential to avoid huge damage to the u.k.? [shouting] >> what i regret is that the party opposite gave away so many powers. it's going to take a while to get some of them back. further, when he was in government, there were repeated

increases in the e.u. budget. this year we have achieved an e.u. budget freeze. when he was in budget he giveaway the bailout power and we had billions of pounds in other country. we got that power back and at least with strong negotiation standing up for britain would help clear up the mess that labour left us. >> thank you, mr. speaker. over the last second and a half -- we allow our young people to leave school without the proper skills to make decisions that next week the group on financial education of schools will report on where we -- with the prime minister meet with a small group -- [inaudible] >> i'm very happy to meet with my honorable friend who does a great deal about is having himself been a supply teacher for many years in the constituency he now represents. [laughter]

excuse they. i'm happy -- financial education is important our young people and i look forward to seeing his all party report. >> mr. speaker, the prime minister once said he wants to lead the most family-friendly government ever. isn't it a disgrace that nearly 19 billion pounds -- over 13 billion have fallen on women? >> well, it was this government that introduced 15 hours of free nursery care for three-year-olds in four-year-olds, something that the labour party never managed to do in government. and in spite of the appalling mess that we were left, we put in an extra 380 million pounds to double the number of disadvantaged to-year-olds whose parents will get free nursery care. that israel progress, real help for families, something they never delivered. >> thank you, mr. speaker.

what with the prime minister say to a council like cleveland who are considering -- [shouting] who are considering rejecting government funding for a council tax freeze next year and instead charging by hard braxton constituents 3.5% abortive? >> i've very much open to all council to take up the offer of a council tax freeze because in this you of all your for people to face economic hardship is important we help where we can. that's what we've got the petrol tax. that's what we've allowed the council tax free to go ahead and so my place to be based institute would be to support parties that back a council tax freeze. >> thank you, mr. speaker. since the education act of 1944 successive governments have supported subsidizes travels for students who live 30 miles or more from the school the choice. some local authorities are beginning to cut back on that

support. i don't think any number in his house wants to see that happen. and the prime minister encourage local authorities to brace the spirit of the 1944 education act on this particular issue and? >> i think the honorable gentleman asked a very important question. i support school choice, parents having the ability to choose between schools and i also support fuels. i will look very close at what he says and what local authorities are doing to discuss with education secretary and see what we can do to enhance choice but also the faith-based education that many of our constituents choose. >> andrew turner. >> does the prime minister agree with me that in exchange for us supporting the euro countries indeed with the crisis, we should be seeking changes in the laws of immigration, employment and fishing rights in order to

support our economy and? >> what i would say to the honorable gentleman is, as i said, if they choose a treaty at 27, that treaty requires our consent. and so we should, therefore, think of what i think most our national interest, and i talked about keeping the single market open, i talk about the importance of financial services. but clearly the more that euro zone countries want to do any treaty of 27, the more changes they want to make, the greater ability we have to ask for sensible things that make sense for britain. i'm very keen we exercise the leverage that we have to do a very good deal for britain and that's exactly what i will will be doing in brussels this thursday and friday. >> thank you the prime minister promised i'll cut the deficit, not the nhs. why is this government closing the emergency much research as i king george hospital, cutting

frontline, shouldn't he have said i'll cut the nhs, not the deficit? >> the honorable gentleman is just one because the deficit is coming down. the nhs spending is going up to out as part of it and i know that his own health spokesman said it is irresponsible to increase spending on nhs. we didn't think it was a responsible. we think it is the right thing to do. as he knows the health secretary has set up the crotch area for all local changes, including in his constituency. it has to be proper public engagement. there has to be some clinical evidence. there has to be support from commissioners and has the proper support for patient choice. >> the prime minister has taken a strong interest in the incredible work of the oxford parent infant project in helping families who are struggling to form a strong attachment with their babies. two months ago i started a new charity in my constituency. and with the premise is interest in strengthening families, would he commit to look again at the

incredible work that can be done in earlier intervention the state a fortune in the criminal and care services later on? >> i think the honorable lady is entirely right, and i know about the project she speaks about and i'm delighted she is now expanding it into her own constituency. all the evidence shows that the more we can do to help children and their parents between the age of north and two, when so much as they can set and they have such a bad impact went on in life that's what i think her work and deed the work of members across this house in prioritizing earlier intervention is so important for our country. >> the prime minister was asked by his constituents philip baldi cut vat on home repairs and improvements, he owns his own construction company. cutting v.a.t. and home improvement -- [inaudible] including the federation of small businesses. with the support that cut in vat

which would help jobs growth and business? >> the problem the honorable gentleman has is a have a huge long list of actually spending an extra tax cuts that they want but as we've heard to date at question time again, they oppose every single spending reduction that we are making big impose everything a fundamental reform to get better value for money. so you can only conclude that the spending would go up, the borrowing would rocket, that interest rates would increase at the economy would be left in very, very dire straits. >> doctor julian lewis spent why is my right honorable friend supporting a policy of fiscal unification for the euro zone state which if it happens will undoubtedly lead to the creation of a dangerously undemocratic single government for those countries? >> the point i make to my

honorable friend is this. i don't want britain to join the euro. i think britain is better off outside the euro. those countries that have chosen to join digital have got to make that system work. in order to do that they don't just need stronger fiscal rules, which i think is clear. they need of greater competitiveness. it is for them to decide how to go ahead and do those things. what we should do is maintain britain's position outside the euro and make sure we safeguard our interests at the same time. that's exactly what i've been doing in brussels. >> thank you, mr. speaker. 10,000 service personnel will have heard of the real terms cut in pay while serving on the front line in afghanistan. what does the prime mr. think that disgraceful cut is going to do for morale for those are risking their lives for us? >> what we have done is double the operational allows the people in afghanistan receive, and they are frankly extremely brave people, and we should be