we're not able to parse out the growth in this project. that is specifically attributed to technology. we mentioned a couple of categories where we can look at trends and the equipment that is purchased by the health sector and some of the technology, but in general we don't have a way in this project to break that out. >> 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-spa c-span2. >> i am sure the first minister will do everything possible to ensure that it capitalizes on the tourism that it should bring. >> was probably the best hotel in britain, will the delegates have the chance to visit the other major attractions of newport, the magnificent -- [inaudible] so they can have a rich, unforgettable experience in newport? >> i would agree entirely with the honorable gentleman that newport and, indeed, the whole of south east wales has a huge amount to offer. as i said i believe the latest

government will do a massive amount in showcasing their part of wales to the whole of the world. >> order. questions to the prime minister. >> number one, mr. speaker. >> thank you, mr. speaker. trying to i hope you will allow me to pay some brief tributes. captain richard holloway of the royal engineers was tragically killed after being engaged by enemy fire in afghanistan on the 23rd of december. he was a highly respected soldier and our deepest sympathies and condolences should be with his parents, his brother and his girlfriend who left behind. mr. speaker, our thoughts should also go to the victims of the u.s. helicopter crashed about which details are still in merging. and mr. speaker, today i know that the sudden death this morning of paul goggins, np in southeast would've shocked everyone across this house. he was a kind and a brilliant man he believed profoundly in

public service. he cared deeply about the welfare of children about the importance of social work and he brought his own very clear experience to bear as an mp and as a minister. he did vital work as a minister playing an essential role in delivering the absolutely essential devolution of policing and justice powers in northern ireland. he was like andy bloch right across the house, and always treated everyone in whatever circumstances always cleared everyone with respect. he will be greatly missed and we send our condolences to his wife, two children and his family. >> here, here. >> mr. speaker, this morning i had meetings with ministerial colleagues and others, and in addition to my duties in this house, i shall have further such meetings later today. >> mr. speaker, i'm sure that the house will want to be associated with the comments my right honorable friend. paul was a good and decent man and i know he will be sorely missed on all sides of the house. >> here, here. >> yesterday the british chambers of commerce found that

manufacturing services were growing strongly. does my right honorable friend agree with me that this shows that despite more work that needs to be done, that it is crucial the government fixed -- stick to its long-term economic plan? >> i thank my friend for what he said and what he said about paul goggins as well. it is a welcome report there is to work to do. we've got to continue to get the deficit down. we got to continued economic growth, he getting more people into work. there should be one ounce of complacency. but the report did find that manufacturing bounces are at an all time high, exports are up and serves are going strong. if we stick to this plan we can see this country rise and our people rise with it, do. >> ed miliband. >> mr. speaker, i join the primers in paying tribute to captain richard holloway of the royal engineers who was killed in action in afghanistan.

is death his two days before christmas is reminder the risks being taken on our behalf every day by members of our armed forces. he showed the utmost courage and bravery, and all are symptoms of with his family and friends. i also joined the transients and condolences to the families of the victims of u.s. helicopter crashed. mr. speaker, i want to contribute to our friend and colleague paul goggins. who was one of the kindest, most decent people in this house. and he was someone of the deepest principle. it has shown throughout history, social worker, counselor, mp and minister. and it is a measure of the man and his ability that he earned the respect, trust and affection of all sides in northern ireland. the labour party has lost one of its own and one of its best. our deepest condolences go to his wife, his children, and,

indeed, to his whole family. >> here, here. >> mr. speaker, the whole country will be concerned about the price being paid by those in committee affected by the storm. i pay tribute to the work of emergency services. and the transit update the house on the number of people affected on and what action been taken out -- been taken now? >> first of all can i think the leader of the opposition for his very moving words about paul goggins and for what he said. in terms of flooding it is an extremely difficult situation for those affected. which would never seven people have lost their lives since this began. he's right to pay tribute to emergency services, the environment agency workers, to the flood wardens and to the many neighbors and individuals who have shown great bravery and courage and spirit over the christmas season is helping neighbors and friends. as an ongoing situation, let me bring you up-to-date with the latest details. our current 104 flood warnings.

that means more flooding is expected an immediate action is required. there are also 186 flood alerts meaning that even further flooding is possible beyond what we are expecting more rapidly. although the weather has improved the river levels and groundwater levels remain so high that further flooding could come in relatively short notice but there are concerns including -- given these ongoing threats which could last for several days to, i would urge minutes of the public to keep following the advice of the emergency services in those areas at risk. at a national level we've been coordinating this response. >> mr. speaker, i thank the prime minister for that answer the energy and the environment sector will keep the house updated. he will recognize that some people felt the response center to slow.

and he told a house whether it's become clear why it took so long for some of the energy distribution companies to restore power to homes, and what steps does he believe can be taken to ensure that kind of thing doesn't happen again? >> i think he's right. and all the circumstances no matter how good the preparation -- preparations there are always lessons to be learned. on the positive side the environment agency warning services work to better than has and has. the flood defenses to protect up to a million homes over the december and christmas parade but there are some negatives and we need to learn lesson. i think particularly some of the energy companies didn't have enough people over the holiday period for emergency response, and i saw that for myself. we need to learn these lessons. my right honorable friend will be leading this exercise. the energy secretary has already looked at the levels of compensation and the preparedness and speed of response from energy companies but i would welcome from all members of all constituencies affected by flooding what they

see on the ground about lessons that can be learned so we can make sure it is better in occasions. >> mr. speaker, given the scale of risk exposed by these floods and expected impact of climate change, can the prime minister commit to report by the end of this month getting a full assessment of the future capability of our flood defenses and flood response agencies and whether investment plans that are in place are equal to the need for events of this time? >> i'm very happy to make that commitment. as he knows in his current four-year period wisdom 2.3 billion pounds compared to 2.1 going in the previous be. as i said, with early december flooding action about 800,000 homes protected by previous flood defense work and over christmas parade a further 200,000 houses affected. whenever there is let it make sense to look again at the

proposal that are in the program for flood defense work and to see what more can be done. as well as the government money we will leverage in more private sector and local authority money which is impossible under the arrangements i'm happy to commit as he says for the environment secretary to come back and report to the house about the level of expendituexpenditu re in the years going ahead. >> tobias ellwood. >> thank you, mr. speaker. further to the prime minister's remarks on the recent flooded with -- ludington we join in paying tribute to -- as was local residents in getting with two evacuations in my constituency, one of which is still ongoing due to the river bursting its banks? giving the changing weather patterns where experience go to ask what more could be done in the long-term towards improved river and sea defenses? >> as my honorable friend knows, we've had 290 homes flooded so far. i agree with him at the work of emergency services, the work of

confinement agency has been actually. i think many of the local authorities including my own local authority has had good plans put in place but not every local authority does as well and it will be lessons to learn there. in terms of that area, the scheme of around 40 million pounds we invested over the next five years and that should protect around 2500 properties i 2018-2019. i would be interested to do something about what more he thinks can be done. >> the prime minister will be aware that the majority of new housing benefit claimants actually got worse. you will be aware that private sector landlords are refusing to take benefits are actually a picking them. what does he say to hard-working families that are losing their homes because of his housing benefit cut? >> i will save your working families is where cutting your taxes, that in april this year will be lifting the

10,000 pounds amount of money that someone can earn before they start paying income tax. i think that makes a big difference for some on minimum wage working a 40 hour week. they will see their tax bill come down by two-thirds. but we do have to take action on the housing benefit bill. now accounts for 23 billion pounds of government spending. when we came into office there were some families in london are getting housing benefit payments on 60, 70, 80,000 pounds. they shout how many. frankly, one was to me and that's why of we cannot housing benefits. >> has the government decide to mitigate the scale of the cuts, can my right honorable friend tell me how i explained to students why they should make every effort to suspend and avoid taking on debt? but it's quite all right for the government to ignore the same advice? >> i think my honorable friend makes an important point.

we have taken difficult decisions to get the deficit down, to get the country back on track and that is meant difficult decisions in terms of spending and also welfare. the party opposite is now back to where it started. they are now saying they want to mitigate the level of cuts and, therefore, they want to spend more. they want to borrow more, they want to tax more. we may be at the start of a new year but they've gone completely back to where they work three years ago. >> ed miliband. >> mr. speaker, does the prime minister recognized the concern of families and communities about the impact of -- where people can gamble up to 300 pounds a minute? >> i actually share concerns about this issue and i think it's welcome we're having this debate in the house of commons today. i think there are problems in the betting and gaming industry and we need to look at them. i think it's worth listening to the vice of his own shadow minister who said that --

empirical evidence is needed before making any changes because i might just create another problem somewhere else. but this is a problem but it does need looking at. we have a review under way. frankly, we are going up a situation that was put in place under the last government but i think if we work together we can probably sort it out. >> ed miliband. >> the 2005 gambling act limited the number of -- betting shops but it didn't go nearly far enough any actions have been taken. let me just say, he asked about -- local communities are saying that these machines are causing problems for families and communities. now, local commits believe that already have the evidence. shouldn't they be given the power to decide whether they want these machines or they don't want these machines because i think he's making a reasonable point but let me deal

with the facts. betting terminals were introduced in 2001 after the labour government relaxed gambling regulations. the second fact is there are now fewer of these machines now than they were when labour were in office, and, of course, to his point he just made, council already have power to tackle the issue and ugly that council should make full use of that power. i'm not arguing that is the job done. there may be well more to do but we have a review under way. this is an issue for the department of culture meeting, if he is ideas i would ask them to put those ideas into this review. but as i say you might want to listen to his own shadow minister who is recently as november said there's no evidence to support a change to stakes and prizes for fix our betting terminals. there does seem to be something of a change but if he has evidence, put it into our region and i think we can sort it out. >> mr. speaker, our i didn't our motion today and he wants to vote for, we would be very happy

for him to do so. mr. speaker, he says the already powers in place, but the mayor of london and the conservative head of the local government association have said local authorities did not have the power to limit the number of these machines. now, one in three call for the gambling helpline are about these machines and they are into private areas. for example, thank you there are 348 and one of the most deprived boroughs in the country. can he at least give us a timetable for when the government will decide whether to act? >> we will be reporting in the spring as result of the review that is under way. i think it is important, there's something of a pattern, mr. speaker, we have the problem of 24 hour drinking and that needed to be changed and mitigated and we done that. we have the problems created by the deregulation of betting and gaming, which is raising today and we need to sort that out.

we also problems of course in the banking industry and elsewhere that we sorted out. as i say if he wants to do -- [shouting] as i said, if he wants to input ideas into that review i think that's the right way forward. >> that i pay tribute to paul goggins just how much he will be missed in this house. my right honorable friend is on the record as saying he was very much like to see the -- [inaudible] can he ensure that the present economy is not held back by the congestion on that road? will be join with me and ensuring that his future visits he can travel much faster and much more safely on the a 64? >> i know the honorable lady is right to raise this issue. the quality and the capacity of the road system in yorkshire has been and is a major issue. the government has taken some

important steps to help that i know there's more work to be done at another the chancellor was listen carefully to what she had to say and i'm sure that would look carefully at the future roads program. >> what plans does the government have to close the loophole which allows businesses to pay agency workers less than their fellow employees doing the same job? >> i looked into this loophole carefully over the christmas period when the party opposite raised it. and i discovered two things about this loophole. the first is it was introduced and agreed by the last labour government. that is loophole fact never one. loophole fact number two, he shouts with this is what they had to say about it. they said for the gold plating the eu growth can only cost jobs. then we have the recruitment and employment confederation. they said this. these arrangements were agreed following consultation between the last labour government business and the union.

is the labour party thing they want to deny british attempts the option of permanent employment? and, of course, the added by saying this, they want to know what we think about this, it's a bad idea all around big the initial response to this will be to employ fewer people on higher wages. what a great start to the new year. let's come up with an idea to increase unemployment. only labour could come up with an idea like that. [shouting] [inaudible] maritime and marine sector to make use of its facilities and its skilled workforce. what can governmen the governmeo send a clear message to entrepreneurs to facilitate businesses moving to and expanding there? >> i thank my friend is right to raise this issue. issue. i think that getting specifically we can do to help portsmouth at this time but the first is the portsmouth and southampton city deal that we

should put in place that would being dropped and assessment. secondly to emphasize the fact that this massive program of modernizing with the account carries, these are by and large going to be based in portsmouth creating jobs, making sure that it remains one of the most important homes for the will navy can. but she's right, add to that there is a future enforcement and other marine industries and commercial a private sector industries and we should do everything we can to encourage business to locate there. >> i would also like to pay my sympathies to paul goggins family. he was a lovely, lovely man. mr. speaker, the government has cut 1.8 billion from special care budget which means nearly half a million fewer people are eligible for special care. with cuts and home care cuts come with home care charges of 740 pounds a year since 2010,

and the governments cared had nothing more than caricom, why isn't the prime minister being honest with all the people him about the real taxes they will face under this government? >> well, what i would say to the honorable lady is of course difficult decisions that have to be taken right across government spending. we put some of that health budget up to 3 billion pounds into social cared to help local authorities. we now want to get local authorities and local health services working even more closely together to deal with problems and making sure the care packages for people when it was hospital in case of the country where this is working you can really see the benefits and we want to make that happen right across the country. >> mr. speaker, our excellent local enterprise partnership estimates that there's a 12 billion pounds economy with nearly 30,000 businesses, and european head offices of over 700 foreign companies.

and they need security of long-term economic policy. will be prime minister assure me that after economic growth clearly returns, that unlike the party opposite he will not gamble with their future and he will stick steadfastly and his long, write and test of economic policies? >> i'm very grateful to my right honorable friend for what she said. there is a vibrant economy right across the valley, including in buckinghamshire. that is going to be some sticking to our long-term economic winter traffic particularly important for the sort of company she mentioned is keeping our rates of corporate tax low to we attract businesses into the country and make sure companies want to headquarters here. that is the right and to combat the answer of the party opposite which used to put up corporation tax and put a clothesline over the british economy. >> thank you, mr. speaker. a year ago the prime minister said he would make damn sure that foreign companies pay

higher taxes. but in the financial times on the weekend it was shown that technology companies like apple and ebay are paying even less. why isn't the prime minister's tough talk adding up very much? >> i think we are. i think using a little unfair but we are making progress on this great difficult issue because we raised at the g8 the importance of having international rules on tax reporting and that the more countries working together on tax reporting and huge progress has been made not lease in the european union where for the first time countries like luxembourg and austria that have always held out against this information exchanged are now taking part. the oecd work is going ahead of pace and that's partly because britain put its full efforts behind this vital work. >> thank you paul goggins was a very decent and humble man and in my experience one of those ot respected and their ministers this house has seen. he will be very sadly missed. the prime minister will know

that the science is clear that the extreme weather conditions affecting opportunity are a destructive and nfl consequence at least in part of climate change. given that he has said that they should be the greenest government ever, will be now according to support carbon reduction targets so we can take real actions to protect people and property? >> i agree with my honorable friend that we are seeing more abnormal weather events. colleagues across the house can argue but whether that is linked to climate change or not. i very much suspect that it is complete the point is whatever anyone to come make sense to invest in flood defenses, in mitigation, it makes sense to get information out better and we should do all of those things. as for carbon reduction target, this government is committed to carbon reduction targets. we worked with alaska bound to put the carbon act into place but it wouldn't have happened without our support group and also have green investment bank up and running and going to be

investing millions of pounds in important green projects. >> thank you, mr. speaker. government has closed the police cells and now discover that the police are having to foot patrol villages using public transport. which begs the question i would like to ask the prime minister. if the police are waiting at a bus stop having arrested someone, should they go upstairs? should they go downstairs? osha did not arrest at all? [laughter] >> the first thing to say to the honorable gentleman is he didn't mention that recorded crime in that partnership is down by 27%. [shouting] but what is so noticeable -- but what is so noticeable --

[shouting] 27%. but what is very noticeable is that every honorable member opposite is giving up and complaining about the need to make reductions in departmental spending. frankly, this is like back to the future, mr. speaker. we are back now to where they were three years ago when we said you've got to make difficult decisions. you got to make some cuts. you got to get the deficit down, and they lived in total denial. they are back to where they were three years ago. it may be a new year. is the same old labour party. >> ian stewart. >> two weeks ago -- stomach for this national hero. may i thank the prime minister, the justice secretary over the years has paved the way to bring this about? and may i invite my right honorable friend to visit the park in my constituency and see for himself the remarkable achievement?

>> absolutely back what my honorable friend has said that i think it is excellent news that has roiled mercy which very rarely granted has been granted in this very special case but i'm delighted to come visit his constituency to go to the park on one of my wife's family worked there during the war and speaks incredibly highly about what he was like and what it's like to work with. there's no doubt, they can argue but the degree but there's no doubt the work that was done was absolute vital in winning the war. >> thank you, mr. speaker. he for christmas -- [inaudible] who is waiting for a kidney transplant. he needs five our dialysis sessions three times a week. but in the -- you've been told by the job center he is fit for work. on monday the chancellor promised to take 12 billion pounds more from the welfare budget. where the prime minister guarantee there will be no further cuts benefits to the

sick and disabled? >> first of all what i would say on the specific issue of his constituency who wants to write to me to the individual case, i'm very happy to look at that individual case. in terms of making sure dialysis machines are available and the expertise is available, we are putting more money into the nhs, even though the advice from the labour party was to cut. and the reason we've been able to put more money into the health service is we have taken tough and difficult decisions about welfare. because we put a cap on the amount of money a family can get, we've been able to invest in our health service. because we put a cap on housing benefit, not giving 60, 70 pounds to some families, we've invested in our health service. we want to see more dignity, or security, more stability in the lives of britain families and we are making choices consistent with that. >> thank you very much,

mr. speaker. back to pre-crisis levels have helped supply chain companies create manufacturing jobs. 200 in the last year, another 400 play and. does the prime minister agreed officials we have successfully rebalancing the economy and we need to stay the course that our policies are clearly working? >> very grateful for my honorable friend and what he says. i went with him to the opening of the new warehouse in his constituency which has generated hundreds of jobs. and as he said will be vital for the supply chain in his constituency. what these businesses want to see is a consistent economic policy, keeping interest rates down, getting the deficit down, cutting taxes, helping businesses to take more people on, investing in education in skills and in control of welfare. those are the elements well on our long-term plan and that is what we expect to. >> i asked the prime minister whether --

[inaudible] should return to pakistan. [inaudible] why is the prime minister still hiding what he should return to face justice speak with i will make two points, and i bring him this morning. the first is this -- [shouting] the first is this -- i think be interesting to hear. the first is this, the allegation he mentioned are disputed and are currently subject to legal action from limited in what i can say. what you fail to mention to the house last time he raised this is that the allegations date from the time when he was a labour counselor. [shouting] and i'm informed, and i'm informed, mr. speaker, that during his time as a labour counselor the labour party get up slowly nothing about these allegations. so perhaps next time when he stands up and asked a question

in the house of commons, he will give us the full facts. >> thank you, mr. speaker. cannot associate myself with a tribute to paul goggins. his words on child neglect will go on. mr. speaker, last year my constituent a 23 year-old, died as result of taking a so-called legal i called -- will my right honorable friend support my call, calls from the corner and calls from christopher's family to make sure that this dangerous drug and others like it -- stomach. >> my friend is right to raise this issue. first of all cannot offer my condolences to the family of my honorable friend's constituent. as he knows with the rules that we have, hundreds of legal highs have already been banned and our temporary drug orders a loss to outlaw substances within days of them coming on the market. but we are not complacent and we ask the advisory council to

renew our definitions of controlled drugs to ensure we capture these newly emerging substances when there's evidence of harm. so there is more work to be done to but i know my right honorable friend the home secretary is honest. >> me i joined the prime minister and the leader of the opposition in paying warm tribute to paul goggins? he was a fine, decent and honorable man who was a great friend of northern ireland and all of its people and he will be sadly missed, not only in this house but throughout northern ireland, and we offered sincere and does to his wife and family at this difficult time. may i also commend the prime minister and welcome the fact he is committed to the triple lock guarantee for pensioners if he is returned as prime minister in the next parliament. and can i therefore ask him to clarify whether is he is elected as prime minister again in 2015 and the next parliament people committed to retaining the winter fuel allowance and it's

current health professionals and is a universal benefit? >> well, first of all can i think in what he says about paul goggins. on the issue of pensions, i think it's important to recognize we are only able to make this commitment to the triple lock which have been important in this parliament because we made a commitment to raise the pension age to 66 and progressively 67 and so on. that means this pension increase is affordable. we made it very clear pledge for this parliament about the pension benefits and i'm proud of the fact that we are fulfilling a. we will set out our plans and the next manifesto. but what i would caution people about is the belief that somehow if you don't pay, for instance, winter fuel allowance or the other benefit, if you don't pay them to those, for instance, thing tax at 40 p. you save a small amount of money so of course will set out a plan in the manifesto. but absolutely vital is saying

to britain's pensioner unit worked hard, you've done the right thing, we want to give it dignity and security in old age and the triple lock makes that possible. >> mr. speaker, is my friend of where that my constituency, there's been a large fire of waste earning since the timber third last year and that the residents locally have been suffering from the fumes and smoke for what we now know may be hazardous waste and that the fire brigade can put out the fire for fear of polluting the water supply? can i have my right honorable friend's support to get this material office site and give residents their lives back? >> i will certainly look in in even more detail to the issue that he raises. i understand the concern is causing my right honorable friend and his constituents. my understanding is that environmental concerns, in particular the waste might run often pollute local water supplies from the september the efforts to distinguish --

extinguished the fire. i'm happy to intervene with him on his behalf to make sure this makes progress. >> mr. speaker, the prime minister campaign launched an initiative this week encouraging people outside scotland to take part in the debate. given that initiative why will the primus are not debate the minister on television? >> there's the calls for this debate show a mounting frustration amongst those calling for sconce separation from the rest of the united kingdom. because they know they're losing the argument. they are losing the argument about jobs, about investment. they've completely lost the argument about the future of the pound sterling. they're using the argument about europe and just of course there should be a debate but a debate between people in scotland. the leader of the in campaign should debate the leader of the out campaign. now, of course, he as the lackey

wants to change the terms of the debate but i'm not falling for that one. >> in the 13 years before 2010, there was net migration of nearly 4 million people into the uk. most into england and in many cases a result of work permits issued by the then government. what my right honorable friend give me an assurance this government will keep in place its capital number of workers outside the european union and encourage employees to reach out and hire young people here? >> i can give my honorable friend the assurance he seeks. we should keep the cap on economic migrants from outside the european union. we should continue with all the action were taken to make sure that people who come your up coming to work and not to cling to but i think what we need to do next is to recognize that the best immigration policy is not going to strong border control but also have an education

approach which is educating our young people for jobs in a country and a wealth was in that encourages them to take those jobs. it is three sides to this argument, discover has a plan for all three. >> but i agree with the prime minister -- [shouting] [inaudible] is genuinely -- at the leader of the north campaign in scotland cannot get a debate with the leader of the campaign in scotland and that the leader of the yes campaign in scotland demanded today for summary -- [inaudible] does the prime minister agree with me and politics, in shipbuilding, empty vessels make the most noise? [shouting]

[laughter] [shouting] >> there is more. [laughter] without -- [inaudible] could i tell them that the last person -- [shouting] was to have as the representative is a tory -- [laughter] even one with a fine hairstyle this. >> i well remember when he came to question time not within into those the but with a model of the vessel that he wanted build so near to his constituency and i'm proud that this government is building that vessel as indeed another one like it but i also accept, humbly accept, that one, i'm sure there are many

people in scotland would like to talk about this issue. might appeal doesn't stretch to every single part, but the key point he is making is absolutely right. the reason the yes campaign and the no campaign can't seem to get a debate is because those who want to break up the united kingdom, they know they're losing the argument so they want to change the question. it's the oldest trick in the book and we can all see it coming. >> border. -- order. the right honorable gentleman. >> here on c-span2 we will leave the bridge house of commons as they move on to other legislative business. you've been watching prime minister's question time aired lives -- aired live wednesday everyone's of a partner is in session. you can see this again sunday night at 9 p.m. eastern and pacific on c-span. and for more information go to c-span.org and click on c-span series for primus' questions plus links to international news

media and legislatures around the world. you can also watch recently do including programs dealing with other international issues. >> on c-span3, the head of the u.s. chamber of commerce tom donohue at 9:30 a.m. eastern. at noon the results of the university of virginia report announced how states can reduce health care costs. later, house majority leader eric cantor will be at the brookings institution to talk about school choice. live coverage is at 2 p.m. eastern. >> can any woman be adequately prepared for the duties of first lady? >> yes. [laughter] >> you are the wife of the governor or if you're the wife of the vice president, speak or

if your mother law is first lady and you watched her spent yeah, i think again. and i think it's a golden opportunity to do something, i think labor is one who said, opportunity to do something good. and if it by chance helps her husband, all the better. >> the world health organization estimates that more than 1.6 many people worldwide are diagnosed with breast cancer each year. many live in countries where the disease carries stigma and shame. by sharing the lessons that we've learned, americans can't empower more women to detect breast cancer early. which today is the closest thing we have to a cure. >> as you all know, chicago is truly a city of neighborhoods separated by park and boulevard. it's a city where walking just a

few blocks can put you into an entirely different world of experiences. cut through a park and you go from english to spanish, black to white, puerto rican to polish. cross a few street and you go from historic homes and manicured lawns to abandoned buildings and dark street corners. so the opportunity available to a child growing up in one neighborhood in this city might be vastly different than a child growing up just five blocks away. and that difference can shape their lives and their life prospects from the moment they are born. >> monday our original series, "first ladies: influence and image" returns with the five most recent first ladies from nancy reagan through michelle obama monday night at nine eastern live on c-span and c-span3. also on c-span radio and c-span.org.

>> now a korean economic institute of america forum on south korea's economic and global influence. this is one hour. >> well, good afternoon. it's good to have you here at the korea economic institute of america, and it's going to be my distinct pleasure to welcome you, and also to introduce our, i think extraordinary distinguished guests like to happens to be the boss of kei, and within his new role and we are really excited that he is here to share this one hour with us this afternoon. it's appropriate we enter into a

new year to discuss the challenges facing korea's economy in 2014. korea's growing influence in the global economy. korea's story is one of great economic success the korea emerged from abject poverty after the korean war to become one of the world's most vibrant economies pick in fact within the span of 60 years, korea has moved from estate dependence on foreign aid to becoming the 12th largest economy in the world and the number of exclusive club of developed nations. in fact, the highly respected financial affairs journal recently taken south korea as one of the six hot markets to watch. according to the editors of foreign affairs, south korean has profited from smart leadership, proximity to big employers, making their manufacturing driven becoming especially appealing for investors. does this mean everything is

perfect in korea? no. economic and political events in other parts of the world can negatively affect korea's growth. the in the of quantitative easing by the u.s. federal reserve, economic policies of the new japanese government under prime minister, the volatility of the north korean regime and trade protection around the world can all chip away at the economic growth in south korea. that's not all. korea faces domestic challenge is as well from demographic changes to a skills gap in the workforce which according to the world bank required korea to recruit nearly one half-million immigrants to fill open positions and 84,000 small firms over the past decade. our purpose today is to be from korea's preeminent scholar in this field of economic, and the role korea plays in the global economy.

doctor houng lee is called by to discuss these matters. he received his doctorate in economics, shortly thereafter embarked on the nearly 20 year career into the capacity of the international monetary fund working through two different grades increase economic history including the asian financial crisis in 1997 and the global financial crisis in 2008. dr. lee was recently appointed as the new president of the korea institute for international economics on economic policy which is south korea's leading institute concerning global economic issues. and also as ambassador for international cooperation and g20 for the republic of korea, it pretty busy. dr. lee, we look forward remarks and to speak for about 15 or 20 minutes and then open up for questions. if you see me waiting over there, that would be the highlight that it's time to the question.

and then at 350 time that we have another korean guest, mr. senator mitchell -- mr. cho. did he come yet? he wanted to make a few brief remarks on korea's role on the global economy. dr. lee, the floor is yours. >> let me get my watch out. well, great, thanks. what i plan to do is spend five minutes discussing about the global economy. next five minutes how the g20 views the concentration, and the next following five minutes on the current economy. to i will sort of spend five

minutes each on three topics. they're all interrelated. the first five minutes of speak as the president of kei because that's our own institution. so the following five minutes, sherpa, g20 sherpa is that is what we will be discussing at the g20 level. and the last will be spent as an independent economist because these are my personal views. so let me start. let me start with the challenges facing the g20 economies. it's tied to the challenges facing the g20 the talking but the global economy's first. according to our outlook, and kiep is the only government, only think tank entry that is responsible economic economy. analyzing the impact on korea, and that we have our own projection of our global economy

that we were close also with ci domestic it's not related to me being former ims staff. exactly before i joined you. as we can see you, next year global economy would be essentially trotting along. no surprises expected. there's a big question to be asked whether the slow recovery essentially represents growth or continuing large output gap whether the potential itself is now low. the questions are still there. nobody knows for sure what the answer is. next year most likely will be somewhat growing somewhat stronger than other countries. they face some problems but i don't think that there has been able to couple themselves. still dependent, beginning of what happens -- and last part

how fast tapering will take place. so slightly positive economic outlook globally and let you buy advanced economist but there are essentially live risks. i'm not going to do all this in detail but a sense of the questions i'm asking myself is with the use recover be sustained and, obviously, will be depend on several key factors. the answer to which i am not fully versed. of cover this in a minute. and second, as europe bottom out or will it come into, slight downward but again, there are assumptions one has to address before one can answer this question. third, china, here's the outlook

is -- we can be more certain on the actual outlook if we know what the policy our because the economic growth in china largely pretty well determined by what policy actions chinese authorities will be taking. then can economics jump in japan? again, there are many conditio conditions. and five, what has been the sort of economic growth in emerging economies relates to fully decouple themselves from advanced economies or not? if not, what has led to recent strength the recent weakening following strength and economic growth for a couple of years even after the lehman crisis. u.s. recovery -- shale gas benefits, part of -- you know the answer what he is recovery is, we have to ask ourselves how

fast with the fiscal consolidation be, and also with the impact from shale gas benefit -- with the recent report seems to indicate. so depending on which -- [inaudible] but if you look at over the medium term again, the outlook doesn't indicate that they will be in certainty in one direction or the other. there's still a lot of -- that has to take place. particularly if the new health plans and pension payouts based on demography will have to be financed in some way. that means the nonhealth part and nonservice part of the government spending has to come

down quite rapidly over the next 10-20 years. it's not quite clear whether that will -- partly depends on where the economic growth sustains itself. the point i just want to point out here is that, u.s. recovery whether it is sustainable or not, it's not the current outcome and are a lot of gifts that have to be satisfied. and then the second question is monetary policy normalization versus higher cost. again if you look at the average u.s. real interest rate, depending on structure in real term, essentially the t-bill or t-boned rate shows that in order for the current interest rates to return to the 50 year average in real term, on the short side

industry -- [inaudible] >> not only in the united states but the rest of the world. and how fast with the normalization take place? that's a big question to ask. it's not necessarily the case -- it's not necessarily a speak and act to control the normalization. here, on the table on the right side, is, you can see the assumption itself issuing increase in nominal interest rates from .5 and 2013 to 3%, about 50 basis points which is what i was just indicating. and the additional dynamics that we have to consider,.

[inaudible] huge demands for liquidity outside the u.s. this recycling of the dollar funding will taper off itself. so that will be another sort of drag on the u.s. economy. but i'm not going to go into too much detail here. europe, has europe bottomed out? partly depends on what the financial presentations can be stopped, reversed partly or in aggregate whether the financial market is the best system, capital can be raised very quickly, to what extent the leverage, to what extent they can be slowed and to reversed. in g20 there's discussion, some attention, you're in terms of

how fast should take place and so on. for data here seems to indicate europe -- it still remains about zero which is still relatively tight. so it is easy but not quite sure whether it is really bottomed out. and the supply-side, again, demand remains, supply-side remains sluggish. expectations have gone excited about their which means it's now slightly -- still, the actual one is lagging behind. the bottom of the cyclical development, but not quite clear. next to it and there will be recovery or not. and partly the result, the banking unit in the context can

be successfully completed. and i think this is a very -- [inaudible] so that the two conditions to satisfy that i think what might happen is the european countries may be able to recover relatively quickly but at some point in the future the same problem will arise again unless one can assure constant unit price across eurozone. >> china's past long-term gain versus short-term gain. i can say this with a certain degree of comfort. having spent the last three years in china and have looked into the chinese economy, the economic outlook or the economic performance in china very heavily depend on government policies. and face decision for government

to delay its reform and emphasis on the shore growth, then i can sure there will be short-term growth. but the cost is essentially delaying reform for the future. and the reform that has to be dealt with in the future will actually start growing. and it will be in the form of increasing ngos in various forms. it would not be very easy in the banking david but it will be reflected somewhat come at some point will be reviewed. investment to gdp ratio. we came up with investment that should be around 40% for china's economy to be sustainable. the actual investment is about 50%. it varies a lot across regions. but on average what we found was the east coast areas where economic development advance. investment there seems to have good traction but in non-eastern

provinces where investment is even higher, traction is not there. so there's a lot of weight which seems to achingly and at some point somebody has to pay the price. the recovery in japan, was a phantom stock exchange but if you look at what happened in the stock market, during the last 12 months, we saw a sharp increase in the stock prices and thus consumer confidence built up an increasing demand. but the competition of sales

once you to start looking in this in more detail makes you feel a little bit uncomfortable because essentially what happened was there was a lot of nonresident purchase of japanese equities. and an equivalent amount of sales by domestic investors. and as foreign investors are coming in and participate with this, they were shortening their yen positions at the same time. what that tells it is a problem in the global financial market they will pull a. meanwhile, the japanese investors, who we thought were behind the conference building were actually not the case. they were actually pointed money out and investing money outside and selling fixed income markets. ..