decisions and taking action. it is very well for people to say we should not a done this or that, something wrong here, but we have taken the toughest possible decisions on banking, the toughest possible decisions on the regulation. we brought the g-20 together in london to deal with the crisis. the parliamentary scandal hit us as part of -- as far as expenses are concerned and we have taken steps to end regulation -- self regulation in politics. we've got to make tough decisions and we have the people to make these decisions, what are the impact on popularity. this has been a difficult year, but i think you can see what we are coming true by building britain's future, taking the decisions for the long term. the idea this government is not putting forward policies for long term is completely wrong. but what we have done on social care, carbon technology, look at the youth employment.

the that our initiative on nuclear disarmament for the rest of the world. in all of these areas we are taking action. i just remind you on afghanistan and pakistan about being prepared for what happens in those countries. in april, we issued a new policy for afghanistan and pakistan. i set out that policy very clearly. we lead the world for proposals in dealing with those countries together. that is the policy that we are proceeding with now. >> prime minister, the rest of a lot of pressure recently on israel to end its settlement policy. what is the international community, and britain in particular, asking of the arab world? and in relation to the rearming of hezbollah, there is no difference between the political and military wing of hezbollah.

what is being done about these areas of hezbollah? >> first of all, the foreign office's is right to try to secure a better peace in lebanon. secondly, we have appealed to the israeli government to end the policy of expanding settlements. i appreciated the comments that mr. netanyahu made after his visit to america, that he is prepared to consider a two-stage solution. and -- a two-state solution. i believe that response in the end has got to be about the recognition of israel. >> prime minister, how you assess the statements made yesterday from the spanish foreign minister? >> we had talks in gibraltar yesterday. it is possible, even on difficult issues to make

progress. >> to go back to afghanistan, there is an agreement, that the british troops are the spearhead for operations. therefore, does not matter who contributed helicopters. but because of the politics among certain members, that would [unintelligible] is it time to also appealed to your friends in the muslim world that did suffer from terrorists to contribute with equipment and, perhaps, muslim troops on the ground to make a lot of difference and defeat al qaeda propaganda? >> let's put it in its proper perspective. we're the second largest contributor in afghanistan in terms of forces and equipment.

we are bearing our share of the burden of dealing with the problem of afghanistan and the terrorist threat. there has to be some sharing among nato. as far as helicopters are set up, we set up the joint helicopter fun. there was an agreement that there would be three helicopters put in already. there are 2011 new helicopters put in as a result of that. that is a substantial addition in afghanistan and it is a result of the joint resolution that we must share the burden. nato has contracted helicopters as well, and this has got to be recognized as a shared exercise and there is genuine burden sharing in it. do not forget the other factor in afghanistan is this, that the afghan national forces, the army

and the police, have got to play a part in the construction of afghanistan. we are 28,000 at the moment and we want to rise to 130,000. i have already said that it has got to be higher than that in the future. we are training military police. in the long term, this must be complemented by the afghan forces being built up. that is exactly what i've said to president karzai and is what we are prepared to do to treat the afghan people to not only will the ground after we have done this present operation, but to play part in the security and defense and protection of all of regions of afghanistan. >> you talk about decisions you made. in the spring of this year, you decided to reject the military chiefs preferred option to send more troops to afghanistan for

this phase of the operation. anti- regret that now? do you think you may have to revisit that? >> i do not think that is a correct interpretation. we had a number of options for us and we expected we would increase the number of troops from what was 8100, the part that we were discussing, to what is now 9150. there has been an increase in 1000 of the troops that are available in afghanistan. we increased in april the number of people that our engineers to deal with the specific threat that we had in a fight, which is electronic devices. we have not only increased the number of forces, but we made a special provision for electronic devices and we put a -- an investment program to deal with these electronic devices. you've got to look at what commanders are saying on the ground about the provision that is being made for operation panthers claw. of course there is a debate about the future and what you do

with the reserve -- with the future and whether you spend more training the forces or not. but it is unfair to say that this operation is underfunded and is not working because it is working. >> he said you're going to take a few days' holiday to shed some light on -- a few days' holiday. to shed some light on that, how many books are you going to read? what would you do? >> i am looking forward to being with my children and it will be in this country, not abroad. as for what i want to do, i want to watch a lot of support because this has been a great summer of sport and i have missed too much of it. we had a great time almost getting to the final period we have got a cricket team that is doing brilliantly and i want a chance to watch some of these great sporting occasions over

the next few weeks. that is what i think i will be spending my time doing. >> are you satisfied the range runs around during mckinnon our balance as they stand? >> -- gary makenna and our balanced as they stand? >> i think if you look at the number of people that have been extradited from britain to the united states under the treaty, the lesser offenses and the violent offenses, there's a limit 1 terrorist. if you look at the number of people that have been extradited from britain to america, there is that the same number. this raises a number of issues. anybody who looks at this must be sympathetic to someone who suffers from as perjures --

asberger's syndrome. there court cases pending at the moment for his judgment and i think we have got to wait for the outcome of these court cases. i do not think people want to give the home secretary absolute discretion of who comes in and out of the country. >> prime minister, what you think is acceptable to have to wait five months for these elections? >> hudgins can happen in many ways and the the way in which >>

he said the economic recovery coverage could not be taken for granted. are you satisfied that the bank is doing all it can with the program, or do you think the bank of be doing more? >> if you really held this press conference nine months ago every question would have been about the economy. it is interesting that this is the first one about the economy. it reflects that we have stabilize the bank and system and the interest-rate cuts have made different. but you cannot just assume that because this is an issue that we discussed nine months ago that everything has happened and we can talk about other issues as if this is not still a nation that has got to be looked at. as people look up the situation over the next few months they will find unemployment rising very fast in other countries. the question is whether we can

take action in the country here. we will see that lots of small businesses and homeowners have really gone under and the question is, can we make sure that we can protect as many small businesses as possible and at the same time prevent housing repossessions. as far as the banking loans action itself is concerned, i'm confident it has been -- it has made a difference. it has been done in britain and america and japan, but not in the american union -- the european union. the interest rate cuts were ceasing to be as effective as they had been in the beginning, but the fiscal policy, which is a precondition of sorting out this problem. i have to emphasize to the people here that there is a debate about this policy. if we had not acted and take in the decisions we had made to inject resources into the economy, there would be higher unemployment now, growth would be slower to return and we would

have more debt and deficits in the future. i think we are having a debate about economic policy and fiscal policy, what is important to note that we said it is difficult to inject that and we did it. does the old way that people used to deal with recessions in the '80s and '90s, i think people will look back on this and say, -- for example, repossessions at least a huge limit in the '80s and '90s. we have started to show that we can manage repossessions wherever they rise. people are may be too complacent about recovery. we are determined to keep our focus on that.

>> earlier this week he met, knox, whose son was stabbed to death. -- you met call-incolin knox, whose son was stabbed to death. earlier this week he demanded harsher penalties for the skype -these types of crimes. >> i've talked to a lot of families whose family members have suffered as a result of my crime. our ultimate goal is to change the public mood about knives and carrying them. at the moment, people think it is an acceptable to carry guns in public.

people think bullying in schools is unacceptable because there have been massive campaigns on these issues. we have got to do the same thing for knives. and we have got to make it unacceptable for young people to carry knives. if young people are caught with knives, there is a resumption of prosecution carried the disease sherry -- of prosecution. the judiciary has made it possible to have a custodial sentence. if we can, however, combine the tough action we are taking on sentencing with a national campaign with world models, people who are sportsmen and women, families who have suffered from high crime, then i think you can create a mood in this country. i think there has been a change. action today in some of his areas where there has been most trouble as a result of knives. we want to combine, and i think

mr. knox would agree, the punishment that is meted out with the prevention that comes through a campaign that makes carrying knives unacceptable. >> the question about financial regulation. do you agree with the conservatives that the tripartite system is broken? what do you think of the idea that the bank of bank -- pending the becomes responsible for everything? >> that was the old system and it did not work. the old system left the bank of england is responsible for all of these things. you had bearings, all the other problems that we had to deal with in the past. there is a consensus in this country, and i am sorry that the conservatives are on -- are inside it, but if you are going to regulate your banks, then you have got a system responsible

for doing that. the idea that we return to a system where what is the monetary authority responsible for interest rates in this country, responsible for controlling inflation. what was created in 1997 as the independent powers to set interest rates, then it should be doing the day-to-day regulation of every hon angeles -- institution is not only a potential conflict of interest, but it is not unique. we need is a system where the bank is responsible for monetary policy and general stability. the new regulatory system where you have an agency that would replace all of the old self regulation that did not work in the past. there were about nine different self regulated parties. many other countries are modeling this system of regulation in the future of the structure that we've got. you need the government also for

the tripartite system. the tripartite system is one that most countries have started to follow. it has got to be made as effective as possible for the future. i think when people look at this table say, conservative party, never in fear -- favor of independence for the bank in the first place, never in favor of having an independent setting of interest rates, always in favor of the old self regulating system that never worked, and to return to the delight that is completely unacceptable. i think he will find that informed opinion agrees with me that you need a tripartite system and you need a strong system of authority as well as a bank that has strong monetary policy. it is only when you work within the system and you look at it that you know that it would be completely wrong to abolish the financial-services authority.

>> are you really happy with the parliamentary standards bill that has been adopted yesterday? because some weeks ago we were here and you were telling us there would be some code of conduct for mps and more sanctions, the diplomatic authority would have some sanctions, and a lot of that has disappeared now. >> that has not disappeared at all. the central element of the bill are that you abandon self regulation and put members of parliament under a statutory authority, which is independently responsible for regulating affairs. the second component is the code of conduct, the financial members of parliament, and that is to be developed by the independent authority. and the third is the fraud, the criminal offense. the other issues were issues of pay advocacy and declaration of interest. the central criminal offense is

fraud. and just as in the parliament and the assembly, where there is fraud, that is now punishable by a to give offense related to members of parliament of years and years in prison. all the essential elements of the legislation are not only intact, but we're the first in the world to do something like this that makes all self regulation a thing of the past. and we just had to do with the financial services, move from self regulation to statutory regulation. we have done it for members of parliament as well. but in the one area that remains is the press. ç>> looks -- labor looks like s heading for defeat in north norridge tomorrow. one of the reasons they say they are rejecting labor is that they feel that a popular mp was made

a scapegoat by you. can you explain why he had to be barred and q regret that you stop him from standing in the next election -- and do you regret that you stopped him from standing in the next election? >> when you take as dramatic action as suspending people from the membership of the parliamentary labor party -- and we have done that in a number of cases where we thought that what has happened has been unacceptable -- i agree with you that for these reasons. as someone who is popular locally, this is a unique by election. i hope that people -- that labor voters will come out and vote labor, but i do think people understand the uniqueness of this by-election resulting from the parliamentary events from before. >> last week, north anderson -- lord, anderson responded to the public labor reaction and he

responded in a decade of restraint. it does not mean there will be cuts in public spending? isn't it time you are honest answer would people? >> he was speaking of some tough choices and we have already made a series of tough choices. i have said before that we have raised the basic rate -- the top rate of income tax. we have raiselower the release f pensions for people at the top level by 2011 by 0.5%. and we have made some tough decisions. these decisions have been to cut the deficit and get resources to the front line. the big issue on spending at the moment is exit what happens right now for us to invest in public services so we can get

through the recession. it seems to me that people are avoiding this central question -- is it right for this year and next year to make sure that the economy recovers and that there are more jobs in the economy, to take a public spending decisions that the government has made that will affect what we can do in the future as well, is it right to make these decisions now? the opposition says no. we say yes. other countries and say, yes, you have got to help people to recession. the opposition says no. we have got to get this debate into some perspective. but now we are spending more money and bring money for that we would have otherwise spent later. it is the right thing to do to take us out of recession. i have heard the debate on that. we have said, you've got to spend through this recession so we can make provision for the future. that is the issue of contention.

>> how far are the relations between iran and the u.k., especially after the iran and election? retsof it is a matter for the iranian -- >> it is a matter for the iranian people, they chose in their elections. it is not a matter for any other country. but we have to be concerned if individual rights of citizens are being affected, and particularly if diplomats are being expelled from the country. british diplomats and members of staff are being detained without justification. we have to make it clear that this is not acceptable. other countries have supported us in doing so. and we have also made it clear that we respect the rights of freedom of speech and freedom of assembly. it is important that the world tells iran that is how we feel. and that is exactly what we have done.

>> i'm just wondering, you suggested that in europe and maybe in america that unemployment is the point to rise. you anticipated the possibility that it will not rise so much in britain. why you think the claiming count is not rising as fast as people expected? is something going wrong with these statistics, are we actually seeing unemployment not rising as fast as people predicted? >> i'm not predicting the future levels of unemployment. we never do. but i'm saying that the action that we have taken has saved probably 500,000 jobs from being lost. you're absolutely right. çin february, the claimant cout had a rise. last month, it was 20,000. we will have to see what it is in the future. the main thing that seems to be happening is that people are

moving back into work far more quickly. they're moving off the unemployment register quickly. in the last month's figures, 300,000 people in a month had moved out of unemployment and have left the job center account. over these summer months, i know people will understand because i think the country needs to know this, that we are making provision for 16 and 17 year- old. we're making provision for more than 50,000 extra places so that they can have something to do and they are not left like in the 1980's and 1990's, which was unemployment. we are making provision for people who have been unemployed for a year by next january, that they will get help so they are guaranteed a job or a trending place. we are increasing the number of apprentice chips, the number of university students, the number of postgraduate students, increasing the number of the internships for students.

-- for graduate. all these things can be done because we believe that morally, this has to be done. secondly, we believe that getting the economy back to growth is a better way to reduce debt and deficits and, indeed, keeping up with the public services that we want to back as front-line services for the future. i'm making no predictions about unemployment, but what i am saying is that the action that we have taken already has probably helped 500,000 people avoid unemployment and the action we are taking in the summer months in specifically to stop a generation of young people not being employed and to give them other chances that will make them better able to get jobs in the future. >> do you agree that if off- operation panthers got is a success, that is a sign not to

go for a final victory but for reconciliation, providing a route back for the taliban to constitutional means rather than force? >> it is clear that you back the military action that is taken by action to raise the strength of the afghan forces, that is, the police and the army. you build strong against them at the local level, help the people resist al qaeda, and of course, if we can persuade taliban leaders to come over and resist the taliban, and at the same time embrace democratic politics, that is something that we want to achieve. the afghan taliban is one thing. the pakistan taliban is another. and al qaeda is the third force that we are talking about. but if we can persuade as part of our strategy in building

afghan institutions, that those people who have embraced violence in the past should come over the damage -- come over and support the democratic process, that is something we want to encourage. but this also requires us to build up the afghan army and the police, requires the state institutions to be strong enough and to be sure that any reconciliation that happens is within the context of afghanistan being able to maintain law and order. >> you said earlier that you are going to take just a few days' holiday in this country. do you not think you need and deserve a proper holiday? or are you a little bit uncomfortable about leaving the country in hands of your first secretary? [laughter] >> no, not at all. there are number of ministers who will be taking responsibility in august, here herman, peter anderson, and others.

i'm taking a few days off. obviously, there are issues that we have got to monitor very closely during the summer. we want to make sure that swine flu is dealt with in the organized, ordered way that i have suggested. and i believe that we have taken action in anticipation of problems that could result from the spread of swine flu. and obviously, too, we have got to make sure that our troops in afghanistan have -- know that they have the full support of the government in what they are trying to achieve. >> you talk about protecting small businesses, but every week at question time, and and he raises the case of a business in his or her constituency that cannot credit from banks. and when i talked to businesses, they cannot get currency from their banks. also, [unintelligible] do you want to cheer him over

the line? >> yes, and i want to congratulate.com daily in his diving success in the world championships. -- congratulate tom daly in his diving success in the world champ in chips. we have conditions in which the banks have start lending again. we're looking at particular niches in the market. what is happening to small businesses, was happening to medium-size businesses? the larger businesses seem to get capital with few exceptions. but we have got to look at these businesses with big capital needs that cannot do other things. this is one thing that's alan schuler is doing now that he is working with this enterprise agenda, but it is what it's been done all the time with our lending panel that looks at the decisions that the major banks will be making. . .

>> are you agreeing with the chairman of the u.s. joint chiefs of staff in saying the two countries are inextricably linked in a common insurgency, and therefore the matter concerning the battle space needs to be redrawn? in that case, how are you planning to implement this? >> the whole framework of our

strategy for afghanistan and pakistan was set out in april. that is when we said that afghanistan and pakistan have to be considered together. that is when we said there is a real problem because people can go from the pakistan side of the border into afghanistan and cause trouble, and return to pakistan, and equally, people can go from afghanistan to pakistan and do the same. that is what our strategy set out what is the future. the future lies in our military action being complemented by action that is taken domestically in afghanistan and pakistan. for the first time we are seeing the growth of a national consensus in pakistan that they must take action against the pakistan taliban. there are many thousands of displaced people, but we are prepared to help. at the same time, the have been targeted by the pakistan army, at the base where al qaeda is.

our free markets to look at pakistan and afghanistan together and to recognize that military action on its own has to be complemented by the civilian action i am talking about an action by pakistan and afghanistan. we want to build up the ability of the afghan governments to be able to do with the threat in its own country, but at the same time want to strengthen the pakistan state in its being able to deal with the terrorist threat that is a problem for its own country. pakistan has many troops on the indian border, but it has also decided now that one of its priorities has to be getting the terrorist threat in its own country. i agree on this issue that it is important to look at both countries together. >> japan's parliament has as of yesterday and there'll be a general election next month. what is your expectation for the japanese government, especially

, would you want to see further action and a more positive role? >> i think that is a decision for the japanese people when the election is held. the prime minister was at the g8 meeting. he agreed to that 50% reduction in carbon emissions as the target for the whole world in 2015 and agreed to the 80% reduction for the industrialized countries. we have made progress as a g8 on agreeing targets for common emissions. we have to make more progress on the other issues in the months to come. >> you may have heard that [unintelligible] given between the two of you you've held the two most difficult jobs in england, and you have any words of advice for

him, perhaps on dealing with the media? >> i have known him from his days of england manager, and it is another sign that football in this country is incredibly important. the people are prepared to take on even the most difficult jobs on this occasion. maybe he could invite me to imagine and we could talk about it. -- in by me to a match. >> it is nearly two years into told us you were a conviction politician in the mold of margaret thatcher. given the you turns we have seen since then, which used to compare yourself with that lady? >> i have a very strong belief that what we are doing to sort out art at economic and financial problems and those

that rose from the parliamentary expenses issue are the right policies. i do not flinch from the difficult decisions we have to make. when people look back on this year from where we were a year ago, it has been a very difficult and challenging year. i was asked if it was the toughest year i have faced. i do not think so. have we made the right decisions? having made decisions based on our beliefs about what is right for the country? i think you look back on all the things we have done, we made decisions on climate change, expanding the education leaving age to 18, decisions to change the nature of the banks, we made decisions to rescue the banks by recapitalizing, we made decisions at the g-20 to go for growth in the world economy, and decisions in building britain's future to take seriously the new industries and the new skills that we need for the future.

this is a forward-looking agenda. if any government had made the kind of detailed decisions we have made in the last few weeks, they would be accused of making too many decisions. we have actually wanted to show people very clearly that on social care, climate change, and the issues of the future of the political arrangements of this country, we have a clear agenda for the future, and it is about building britain's future for the long term. these are the right decisions for the future of our country. >> japan is heading to a general election next month. they are following the british stock so far.

i would like to know what you see at the moment -- we do not have a chance to win the next general election. what do you think about that system's benefit? >> you say it is a two-party system, but it does japan have the same press we have been written? i do not know. i want to say at the end of this year that [unintelligible] is finishing his job as principal adviser and i hope everyone will recognize he has done a great job. thank you very much.

>> you have been watching british prime minister gordon brown in his last news conference before the summer recess. the british house of commons will be out of session until the fall. prime minister's questions returns in october. over the next few weeks, we'll show you british political programming at 9:00 p.m. eastern and pacific time. >> on tomorrow's "washington journal," matthew lee on foreign policy. also grover norquist, the president of americans for tax reform on the economy, and the state department's active inspector general of the cost of operating the u.s. embassy in iraq. also u.s. policy in afghanistan with a senior fellow at the center for american progress. "washington journal," begins live at 7:00. later, a look at obesity.

we will have a live here on c- span at 10 of 55 eastern. >> however c-span funded? >> publicly funded. cracks in donations, maybe. i have no idea. >> government. >> it gets its funding through the taxes. >> sort of a federal funding thing. >> how c-span funded? america's cable companies created c-span as a public service, a private business initiative. no government mandate, no government money. >> earlier today, sarah palin officially stepped down as alaska governor, roughly 18 months before the end of her term. earlier this month, she announced her intention to resign, citing ethics complaint filed against her and personal attacks against her family. just a short while ago, she transferred power to lt. governor jon cornell at the governors' annual picnic in fairbanks.

-- -- lieutenant governor shawn arnelle. -- sean parnell. >> i think the united states military for protecting the greatest nation on earth. together we stand. [applause] i say it is the best road trip in america, a soaring through nature's finest show. the extremes, in the wintertime is the frozen wrote that is competing with the view of ice, fog to frigid beauty. the cold -- in the summertime, such extremes. about 150 degrees hotter than just some months ago and some months from now. with fire we blooming along the

frost heave a sigh and merciless rivers rushing and carving and reminding us that here, mother nature wins. as throughout all alaska, it is that big, wild, good life. that is what we get to see every day. what the rest of america gets to see along with us is in this last frontier, there is hope and opportunity. there is country pride. it is our men and women in uniform securing it. we are facing tough challenges in america, with some seeming to be hell bent on tearing down our nation, perpetuating some pessimism, and suggesting american apologetics -- suggesting that our best days were yesterday's. as other people have asked, how can that pessimism be, when proof of our greatness and our pride today is that we produce

the great, proud volunteers to sacrifice everything for country? [applause] >> this week, shawn arnelle and i -- sean arnelle and i heard tabs for three very young, very brave alaskan soldiers who just a they are all for all of us. together we do stand with gratitude for our troops to protect all of our cherished freedoms, including our freedom of speech, which par for the course, i am going to exercise. [applause] first, some straight talk for some in the media, because and

other right protected for all of us is freedom of the press. you have such important jobs, reporting facts, and informing the electorate, and exerting power to influence. you represent what could and should be a respected, honest profession that could and should be a cornerstone of our democracy. democracy depends on you, and that is why our troops are willing to die for you. in honor of the american soldier, how about you quit making things up? [applause]

don't underestimate the wisdom of the people. our new governor has a very nice family, too, so leave his kids alone. [applause] today is a beautiful day, and today as we swear an sean parnell, no one will be happier than i to witness alaskans with strength of character, advancing our beloved state. i remember on that december day, we took the oath to uphold our state constitution, and it was written right here in fairbanks by very wise pioneers. we share the vision for government that they ground in that document. our founders wrote, all political power is inherent in the people. all government originates with the people. it is founded upon there will

only, and it is instituted for the good of the people as a whole. they are remarkably succinct words and guided us in all our efforts in serving you in putting new first, and we have done our best to fulfill promises that i made on alaska day 2005, when i first asked for the honor of serving you. remember then, our state so desired and so deserve ethics reform. we promised it, and now is the law. ironically, it needs additional reformer to it stop abuse, and i hope the lawmakers will continue that reform. [applause] we promised you that you would finally see a fair return on your alaskan owned national -- natural resources, so we built a new oil and gas appraisal system. this is an equitable formula to usher in a new era of

competition and transparency and protection for alaskans and the producers. aces incentivizes new exploration and it is the exploration that is our future. it opens up oil basins and ensures that people will never be taken advantage of again. don't forget, alaskans, you are the resource owners, per our constitution. that is why last year when oil prices soared and state coffers swelled, you were smacked with high energy prices. we sent you the energy rebate. it is your money, and i have always believed you know how to better spend it than government can spend it. [applause] i promised that we would protect this beautiful environment while safely and at looking developing resources, and we did. -- at slickly -- ethically

developing resources. i promised we would govern with fiscal restraint, so as not to immorally burden future generations, and we did. we slowed the rate of government growth, and i vetoed hundreds of millions of dollars of excess, and with lawmakers, we saved billions for the future. i promised that we would lead a charge to forward funding education and holding schools accountable, and improve opportunities for special needs students, and elevate vo-tech training, and we pay down pension debt. i promised that we would manage our fish and wildlife for abundance and that we would defend the constitution, and we have, though outside special interest groups still just not get it on this one. [applause] alaskans need to really stick together on this with new leadership in this area especially. encouraging new leadership.

we have to spit -- stiffing your spine. he will see circuses from hollywood. here is how they do it. they get very talented celebrity starlets. they use alaska as a fund- raising tool for their anti second amendment causes. stand strong that we will protect our individual right to bear arms. [applause] by the way, hollywood needs to know, we eat, therefore, we hunts. -- therefore, we hunt. i promised energy solutions, and we have a plan calling for 50% of our electricity generated by

renewable resources. we can now insist that those who hold leases to develop our conventional resources do so now on alaskas terms. finally, after decades of just talk, finally we are seeing oil and gas drilling up there at. thompson. i promised that we would get a natural gas pipeline under way, and we did. since i was a little kid growing up here, i remember the discussions, especially the political discussions, talking about and dreaming up commercializing our abundant natural gas. our gas line inducement act was the game changer, thanks to our outstanding gas line team. the legislature adopted a lot 58-1. they know is the vehicle to drive this monumental energy product and bring everyone to the table, this bipartisan

victory. it came from alaskans working together with free market, private sector principles, and now we are on the road to the largest private sector energy project in the history of america. it is for alaskas future and america's energy independence, and it will make as a more peaceful, prosperous, and secure nation. what i promised, we accomplished. we, meaning state staff, amazing commissioners, great staff members assisting them, and conscientious alaskans outside the bureaucracy. many volunteers who just stepped up to the challenge as good alaskans. but nothing could have succeeded without my right-hand man, chris perry. she is the hardest working partner. much success is due to chris.

[applause] in alaska there is much good in store for other down the road. to reach it, we must buy a live the optimistic, pioneering spirit that made this a proud and free. we can resist enslavement to big, central government that crushes hope and opportunity. be wary of accepting government largess. it does not come free, and often accepting it takes away everything that is free, melting into washington's powerful, caretaking arms will just suck incentive to work hard and chart are on course right out of us. that not only contributes to an unstable economy and dizzying national debt, but it does make us less free.

i resisted the stimulus package. [applause] we have championed earmarked reform, slashing earmarked request by 85% to break the cycle of dependency on a stifling, unsustainable federal agenda. other states should follow this for america's stability. we do not have to feel that we should beg an allowance from washington, except to beg the allowance to be self determined. to be self-sufficient, alaska must be allowed to develop, to drill and build and climb to fulfill statehood's promise. at statehood, we knew this. [applause]

we are responsible for ourselves and our families and our future. 50 years later, let's not start believing that government is the answer. it cannot make you happy or help the or wealthy or wise. what can? it is the wisdom of the people, and our families and small businesses and industrious individuals, and it is god's grace, helping those who help themselves. this allows that very generous, voluntary hand up that we are known for, enthusiastically providing those who need it. alaskan will remember that years ago, remember we had the bumper sticker that said alaska, we don't give a darn how they do it outside. remember that? it was because we would be different. we would roll up our sleeves and diligently sow and reap.

we can still do this to car well out of the wilderness and make our living on the water, with a strong hands and innovative minds, and now with modern technology. is what our first people and our parents did. it works, because they worked. we must be prudent and persistent and pressed for the people's right to responsibly develop god-given resources for the maximum benefit of the people. [applause] we have come so far in just 50 years. we are no longer a frontier outpost on the periphery of the world's greatest nation. now, as a contributor and secure of america, we can attain our destiny in the promise of our motto, north to the future. the pressing issue of our time

is energy independence, because there is an inherent link between energy and security and energy and prosperity. alaska will lead with energy. we will prove you can be both pro development and pro environment, because no one loves their clean air and their land and wildlife and water more than an alaskan. we will protect it. [applause] yes, america must look north to the future for security, for energy independence, and for our strategic location on the globe. alaska is the gatekeeper of the continent. we are here today at a changing of the guard. people who know me know how much i love the state. some still are choosing not to hear why i made the decision to chart a new course to advance the state.

it should be so obvious to you. [applause] it is because i love alaska at this much, sir, that i feel is my duty to avoid the unproductive, typical politics as usual, lame-duck session in one's last year in office. how does that benefit you? [applause] with this decision now, i will be able to fight even harder for you, for what is right, and for truth. [applause] i have never felt that you need a title to do that. so as we all move forward together, let's about to keep

championing alaska, and to advocate responsible development and smaller government and freedom, and when i took the oath to serve you, i promised -- remember, i promised to steadfastly and doggedly guard the interests of this great state like that grisly guards her cubs. as a nat -- as a mother naturally guards her own, and i will keep that now wherever the road may lead. todd and i and our children will forever be so grateful for the honor of our lifetime to have served you. our whole big diverse, full and fund family. we all thank you. i am very blessed to have had their support all along. i am thankful, too. i am blessed to have been raised in this last frontier. thank you for our home, mom and

dad, because in alaska, it is not an easy living, but it is a good living. here, it is impossible to lose your way, wherever the road may lead you. we have that great north star to guide us home. let's all enjoy the ride. i thank you, alaska. god bless alaska, and god bless america. [applause] >> thank you. thank you, governor palin, and thank you again for your service to the state. at this time, supreme court justice daniel winfrey will

administer the oath of office to our new governor and a temporary of of office to our lieutenant governor. >> i, sean parnell, do solemnly swear that i will support and defend the constitution of the united states and the constitution of the state of alaska, and i will faithfully discharge my duties as governor of the state of alaska, to the best of my ability. [applause]

>> i, craig e. campbell, do solemnly swear that i will support and defend the constitution of the united states and the constitution of the state of alaska and i will faithfully discharge my duties

as delegated to me pursuant to alaska statute 44.19.026, as temporary substitute for lieutenant governor to the best of my ability. thank you, sir. [applause] >> and governor parnell and intent governor campbell will now sign their oaths of office. -- lt. governor campbell.

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[applause] >> to many of you, the name of craig campbell might be new, but the lieutenant governor is not new to stake a service. he served as at john general to the alaska national guard for number of years. he is no stranger to local government, having served on the anchorage municipal assembly for a number of years. is my pleasure to introduce alaskas new lieutenant governor, the hon. craig campbell.

>> thank you all. i want to thank you all for coming out. what a gorgeous day. it is a typical summer day in fairbanks. it is a beautiful day. it is more beautiful today after what you heard from governor palin about what the future is going to be like. we are witnessing an historic moment for alaska, where the power of the executive branch is being transferred from governor palin to lt. governor parnell. at the same time, the lieutenant governor seat is being filled as we speak. the prelude to a full joint session of the alaska state legislature on august 10. an act to confirm governor palin's of employment for the succession that fulfills her constitutional duties to appoint

the third in line, should there be a transfer of power. as part of that process, i am honored to accept the position of the temporary substitute for lieutenant governor, pending a conversation by the alaskan state legislature on august 10. -- pending confirmation. my remarks will be brief. i would like to start by thanking the former governor for appointing me to serve as the commissioner of the department of military veterans affairs. i have enjoyed the four years i worked with him and appreciate his willingness to allow me to be on his cabinet and to serve at a state level in the great state of alaska. it was an important position to me. i think that did a good job. i think it was confirmed by my appreciative comments when i talk about sarah palin. sarah palin kept me on as the commissioner and the adjutant general. we had known each other a number of years. i first saw her when she was on

the city council, a young, vibrant lady who wanted to push the envelope and make sure her community was represented. today, governor palin has stepped up to what she wants to do for the state and our country. for all of us and alaska, we should be honored and appreciative of what she has done. [applause] some in this crowd may never understand what sarah palin did, but what she did is greater than herself. it is for our state and our country. this lady will go far, and america will be appreciative of what she brings. let me tell you why i feel that way. [applause] during her term as governor, we had the opportunity to work together on some very difficult issues. she advocated for state control of our national guard and demonstrated tenacity in the face of federal attempts to

limit the power of the governor over her own national guard. she was a leading voice in what may congress reversed their mistake and return to governors full authority of the national guard. that is sarah palin. [applause] governor, as you leave office today, please know that your cabinet greatly values the service you gave to us, and all you have done it for the state. you will be missed, and you will always be loved. [applause] now i would like to congratulate governor jon cornell, our new governor, the 12 governor of the state of alaska -- governor sean parnell. the citizens of alaska made a great choice when they selected sean arnelle to be our state's lieutenant governor. who would have guessed we would be standing on the stage

transitioning the power to the now governor. as he takes the oath of office, he is committing himself to the leadership this state needs to move the agenda of economic development, jobs, prosperity, and freedom, to alaska. as governor, you will do an outstanding job. for this audience, they may not know i worked with your father on the anchorage assembly. i watched your family as you grew. the state is gaining a great statesman. you are always pointed in your direction and guidance, clear in what you expected, so that the governor and the staff and understood it, and you were careful to make sure we understood we have to keep alaskans in our heart, small government, economic development, and education are the foundation that will make a last as future strong. i am ready and prepared to serve you, sir. [applause]

i am excited about the prospect of serving as lieutenant governor, pending confirmation with governor parnell. over the next year-and-a-half, you'll see our administration work on economic development and the agenda set by governor sarah palin. in addition to my wife who is with me on stage, my youngest daughter, her husband, and three granddaughters are down there. thank you very much for being here. our other daughter is a nursing california. she said she had to work today, so she could not come up to this. she is there with our other granddaughter, and they are in our hearts today. i would like to thank the fair brings community for the tremendous hospitality to you have brought it to myself and my family this weekend.

the air force and -- air national guard is represented down here. i love fairbanks. is where our state started through the constitution. it is the right place to serve to date during this change of government. not bless you, fairbanks. i look forward to working for the future of the state of alaska. [applause] >> thank you very much, lieutenant governor. i first met john cornell when we are first elected to the house of representatives -- i first representativessean parnell. i have appreciated his, demeanor and his sense of fairness as we grapple with tough state legislative decisions and state

fiscal policy. he brings to the office and wonderful range of experience, having served in the house and the synod in the legislature, practiced business law and private sector, served as a deputy commissioner, and of course, as lieutenant governor. in trying to figure out exactly how this change over would take place, he gave me a call and indicated that after having the attorney general's office look into the matter, the interpretation was a could go to different ways, whether the legislature had to be involved and get that confirmation or not. having looked at the two options, and knowing it could go either way, the governor chose to go with full legislative involvement. there was no need to pit one branch of government against another. there was a sensible process to move forward with, and that is what he chose to do. i think that will mean that this

transfer of power will be seamless. although many of you do not know him, i do, and i know he is up to the task. he served in the senate finance committee as the head of the operating budget at the time. we were finishing what we called the five-year plan. that was back before oil took off. that was back when oil was $9 a barrel. we were way underwater. the legislature had decided to put together a plan to cut the budget over five years, to cut the budget a quarter of a billion dollars. sean had the difficult task of serving in the senate finance committee during the last two years of that five-year plan. if you think the first couple of years were tough, the last two men were extra tough. he was up to the task then, and i can assure you he is up to the task now. as we have this transfer of power, as the reins of power are

turned over, i feel very comfortable, having known him the length of time that i have, that he is up to the task. he has the personal strength. he has the dedication to public policy that you need to demand from the governor. ladies and gentlemen, please tell me to welcome a man i admire and respect, the next governor of the great state of alaska, sean parnell. [applause] >> midafternoon. thank you, alaska -- good afternoon. we have learned to expect the unexpected. we are resilience. we take what comes and face are challenges squarely, with determination and an eye toward victory. governor palin, general adkins,

lt. governor campbell, family, friends, and fellow alaskans, i am honored and humbled to stand before you. alaskans, you are my witnesses. i have given my pledge, and that is my promise to serve you. i have pledged to follow in the footsteps of remarkable people and to leave with integrity and vision. alaska is from that aleut word that means the great land. make no mistake about it, we are great. we are the largest state in the nation. we are blessed with rain forest and soaring peaks, crystal clear water, minerals and oil and fish and game. alaska is indeed a great land. alaskans are a great people. our native elders to ensure the preservation of the rich history and bridge the gap between young and old, passing their culture from one generation to the next. from the earliest days when alaskas first people settled

land to the gold rush of the late 1800's, to statehood, and even today, our people have sacrificed much and contributed much to our state and our nation. alaskans are a great people. alaska's still has much more to offer. both are people and our nation, and given today's economic climate, the stakes are high. you have my commitment to work with you and for you to position alaskas economy for growth and our children in families for opportunity in the future. on december 4, 2006, governor sarah palin and i swore an oath to the constitution of the state of alaska. we did it over at the carlson center. i placed my hand on the bible just moments ago and pledged once again to uphold the constitution. to be here in fairbanks today brings us back full circle. just over 50 years ago, on a hill not far from here, our delegates wrote alaskas

constitution. today we peacefully transfer power, a transfer envisioned by those delegates. i am delighted that a few of those visionaries' remain with us. people like the former lieutenant governor, who is with us here today. [applause] we thank these wonderful people, all the constitutional delegates and their staff for their lasting service and determination and their love of alaska. today i also want to honor and say thank you to my friend and our governor, governor sarah palin. i want to say thank you [applause] ] i want to say thank you to todd and to the palin family and to the heath family. [applause] i am thankful to have served

alongside such an hon., good, and decent human being. from the beginning of her administration, she set about to restore trust and build a future for alaskans. she stood up for all of us. i want to say thank you, governor, for holding fast to your principles. thank you for your enduring faith. thank you for your love alaska and for alaskans. let's hear it for governor sarah palin. [applause] i want to say thank you to lt. -- to lt. governor campbell.

you are conservative voice on fiscal issues, whether in cabinet meetings, your military service, you are our leadership, i just want to say thank you. i look forward to being a working team with you, as governor palin was with me. thank you. [applause] the year was 1954, and that vessel that sits behind me had made its final journey of the river. for a generation is connected our interior river communities. by 1954, time had passed to the river boat by. the modern aviation aged came to alaska, spelling the end of the river boat era. there were more efficient ways to move people and goods around our vast state. it went from a vital economic link to a museum piece. as alaska embarks on its next 50 years of statehood, we face a

critical question period will last a move forward, or will time passed a spy? had we create a strong economy for the next half century? how do we thrive? had we not just survive? first, we affirm our core principles that all are created equal and that life and freedom are precious, that all political power belongs to you, the people, and that as alaskans, we own our state's vast and abundant resources. in affirming life and freedom, we take time to honor our military, guardians of these precious rights. alaska has almost in thousand men and women deployed on foreign soil at this moment. thousands more are serving on our soil. we knowledge and honor the sacrifices made by these many today. [applause] thank you to the men and women

who selflessly serving our nation and all of our people. having spoken to our core bayous, i now turn to our two priorities, the economy and our families. on economic policies, i will not be constrained by a short-term view of our economy, but i will work for alaskas future. many of us feel the uncertainty of today's global recession. many feel the weight of high energy prices. alaska is not immune from the economic downdraft, and we will continue to weather the storm for some time. in our rural communities, where the subsistence and cash economy intersect, alaskans a struggle to pay for gas just to get to their fish camps to operate them. there they experience then runs, leading people concerned about food for the winter. good paying jobs in rural alaska are too few and to seasonal.

people spend less and jobs are impacted. amidst this news, we will not stand idle. we will position alaska for investment and growth. state government is going to do this by maintaining a stable tax regime. we should not be nickel-and- diming alaskans for a few more cents at the pump by increasing fuel taxes. [applause] we will be disciplined and are spending and focus on results for you. by doing so, state government can help produce an economic climate right for job creation. the well-being of our economy and people depends in significant part on cheaper energy. thanks to governor palin's leadership, we have a team working on gas options for alaskans. we remain committed to that work. we completed an assessment of

energy resources and opportunities to disclose to our villages and cities. this means that cheaper energy is within our reach. it is now our communities challenge and our challenge and your challenge to band together to evaluate the resources identified in the energy inventory and take charge of our energy future. it is in our hands. next, i am happy to report that the economic opportunity of a generation lies closer than ever. today, credible entities pursue a natural gas pipeline. two and a half years ago, they were all motionless. i will continue the course set by governor palin and put the interests of alaskans first. [applause] it is not just about big megaprojects. it is about other resource development and about the backbone of our economy.

i know the challenges that are small businesses face, because i have been there. i ran a small business here in alaska for years, as did my parents before me. i will work to reduce costs and increase opportunities for small businesses. 10 years from now, i want it said that alaska and spires and grows dreams. i want it said that in alaska, our young people can seize the opportunity for themselves. i want alaska to be a place where owning a small business leads to greater financial security and where larger businesses look at alaska as a place to invest and create more jobs. [applause] but still, i recognize that our future is not just determined by the economy. the health and restoration of our families also determines our destiny. alaskan families feel the strain. walk into any type one funded

school, and kindergarten teachers trying to calm children traumatized at home. this is a domestic violence shelter and see women and children suffer. i understand hardships work in heating and fuel costs skyrocket. attend a high school graduation and ask yourself, where did all the freshmen go who should be graduating here today? why are we missing so many? clearly our young people and families are challenged. government cannot solve every problem. in the last 2.5 years, we have increased funding for sexual assault programs. we have helped those who were forced to choose between heating oil and yofood. there is still so much to do. here is my vision for our families. i want alaska to be a place

where every child has a say, or as a pawn to go to. i want alaska to be -- a safe home to go to. our graduation but rates will improve, and they will graduate ready for work. i will ensure that alaska continues to help the neediest among us, whether younger or older, from public and private resources. let me close by asking those crucial questions once again. in the next 50 years, will alaska move forward, or will time pass us by? will each of us be a vital player, or are you still on the bench? will we just survive, or are we going to choose to drive? here's my challenge to you now. set your face and hand it to alaskas future. don't even more, run with me to take responsibility for it. be involved. this is your state and your resources.

take heart. the strong and courageous. together we can make a difference. like those who have served before me, i am firmly convinced that alaskas greatest days are ahead. that is because i believe in you, and that is because i know that our good lord is not through with us yet. so god bless you, alaskans, and god bless the state of alaska. [applause] >> you are watching c-span, created as a public service by the nation's cable companies. "q&a" is next. that is followed by british

prime minister gordon brown is monthly news conference. later, sarah palin officially steps down as alaska governor. >> on tomorrow's "washington journal," associated press reporter matthew lee on foreign policy. also, grover norquist on the economy, and the state department's acting inspector general of the cost of operating the u.s. embassy in iraq. also, u.s. policy in afghanistan with a senior fellow at the center for american progress. "washington journal" begins live at the 7:00 a.m.. later a look at the economic impact of obesity. we will have to live here on c- span at kennecott 55 eastern. -- at 10:55 eastern.

>> tomorrow, u.s. relations with china. they will be joined by their chinese counterparts to discuss ongoing challenges and opportunities for the two countries. that is live at 9:00 a.m. eastern on c-span2. u.s. relations with outages here and the muslim world. the speakers are the -- live coverage begins at 12:15. >> have a c-span funded? >> publicly funded. >> donations? i have no idea. >> suspended its funding through the taxes. >> federal funding. >> how c-span funded? america's cable companies created c-span as a public service, a private business initiative, n