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. 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. 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]

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>> let's put it in its proper perspective. we're the second largest contributor in afghanistan in terms of forces and equipment. burden of dealing with the problem of afghanistan and the terrorist threat. there has to be some sharing 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 colin knox, whose son was stabbed to death. earlier this week he demanded harsher penalties for 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. alan johnston is taking new 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. >> looks -- labor looks like is 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 lower the release of 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. in february, the claimant count 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. we want there to be more, obviously. in addition to that, we are helping directly 150,000 businesses. if they are not aware of that, i hope you will help us make them aware of what they can get to help them. >> prime minister, just to get further clarification, with militant infiltration from afghanistan accounting for one- third of the attacks on troops in afghanistan, are you agreeing

with the chairman of the u.s. joint chiefs of staff in saying the two countries are inextricably linked in a, an insurgency, and therefore the matter concerning the battle space needs to be redrawn? . .

there are many, many thousands of displaced people, but we are prepared to help. there is also the pakistan army, and that is, of course, the base, so you're absolutely right. our framework is to look at pakistan and afghanistan together and to recognize also that the military option on its own has to be complemented by the civilian action i am talking about and buy it action by pakistan and afghanistan. there is the ability -- and by action by pakistan and afghanistan. the pakistan state, being able to deal with the terrorist threat, that is clearly a problem in their country, pakistan has many troops on the

indian border, but it has also decided now the one of its priorities is its own country, so i agree with mike mullen on this very issue, because it is important to look at both countries together. >> there will be a general election next month. would you want to see further action? a more positive role? >> i think that is a decision for the japanese people, and it starts with the prime minister that was at the g-8 meeting. he agreed to be 50% reduction in carbon emissions as a target for the whole world and agreed to be 80% reduction for the industrialized countries, which include britain and japan, so we

have made project -- progress as the g-8 with emissions, and we have got to make more progress on the other issues in the months to come. thank you. >> joe. prime minister, you may have heard -- i was just wondering, you have held the two most difficult jobs in england. do you have any advice for him, perhaps, in dealing with the media? >> i have known him as a manager, and this is another sign that football in this country is incredibly important, and the people are prepared to take on even the most difficult jobs outside on this occasion. yes? >> thank you, prime minister.

i am from the daily express. it has been nearly a couple of years since you told us about your position like margaret thatcher. there is the tax with the id cards. would you still compare yourself with the lady? >> i have very strong belief that what we are doing to solve our economic and financial problems are the right policies, and i do not flinch from the difficult decisions. i think if people look back on this year, it is very difficult and challenging, this year. i was asked if it was the toughest year on a face. i do not think so. i have faced tough for years. -- i was asked if it was the toughest year i have faced. i think if you look back at all of the things we have done, we have made decisions on nuclear,

on climate change, decisions on expanding -- on changing the nature of the recommendation for banks, decisions to recapitalize the banks. we have made decisions at the g- 20 about the growth and world economy. we have made decisions to take seriously the new industries that we need for the future, and this is a former-looking agenda. i am just saying that if any governor -- government has made the type of decisions we have made in the last few weeks, they would be accused of, perhaps, making too many decisions. we actually wanted to show people on climate change, on the issues of the political climate of this country, that 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. yes? last person. >> thank you, prime minister. japan is having a general election next month. there is a prime minister and a two-party system. i would like to know, prime minister, the one japanese party having a big chance to win the next election, what do you think about the benefits? could you tell me? >> you are going to get me to comment on the japanese election campaign. you say that it is a two-party system and everything else. have they got the same press

that we have in britain? i do not know. i just want to say at the end of this year that mike is finishing his job, and i hope everyone will recognize that he has done a great job. i hope you're in a position to do that. thank you very much. [captions copyright national cable satellite corp. 2009] [captioning performed by national captioning institute] >> the british house of commons is in recess until the fall. "prime minister's questions" we turn then. we will show you british programming in this time slot. next, the prime minister gordon brown in his hour-long news conference, stressing british troops in afghanistan have enough military resources. [no audio]

>> on tomorrow's "washington journal," a washington reporter on foreign policy. matthew lee. also, grover norquist and harry geisel. also, u.s. policy in afghanistan with a senior fellow with the center for american progress. washington journal begins live at 7:00 a.m. eastern. later, a look at the economic impact of obesity. the centers for disease control and prevention will be live here on c-span at 10:55 a.m. eastern. >> how is c-span funded? >> publicly funded. >> donations may be? i have no idea. >> government? >> c-span's gets its funding through the taxes. >> source of a public funding thing -- c-span gets its

funding. >> america's cable companies created c-span as a public service, a private business initiative, no government m&a, no government money. -- no government m&a. >> earlier today, sarah palin stepped down. earlier this month, she announced her intention to resign, citing ethics complaints filed against her and personal attacks against her family. just a short while ago, she transferred power to be a lieutenant governor sean parnell. here is that ceremony courtesy of playstation in anchorage. >> one thing you are known for is your steadfast support of our military community,

i think the united states military for protecting the greatest nation on earth. [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. -- ice cold 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 rivers rushing and carving and reminding us that here, mother nature wins. -- fire weed blooming. 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? -- whose sacrifice? -- who sacrifice? [applause] >> this week, shawn arnelle and i -- sean arnelle and i heard -- sean parnell. tabs for three very young,

very -- taps, 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. -- another 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. 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. wuitith god's grace. i remember on that december day, we took the oath to uphold our 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 -- their will only, and it is instituted for the good of the people as a whole. they are remarkably succinct -- their remarkably succint 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. -- and so desired ethics reform. we promised it, and now is the law. -- now it is the law. ironically, it needs additional reformer to it stop abuse, and i hope the lawmakers will continue that reform. 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 appraisalthis 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. we built the petroleum oversight office and a subcabinet. 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] let me tell you -- 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. you're going to see anti- hunting, anti-secondsóx amendmee will see circuses from hollywood. -- anti-second amendment circuses from hollywood. here is how they do it. they get very talented celebritythey use alaska as a fund- 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 -- on alaska's process terms, a -- on alaska's's terms on

alaska's terms. 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 about and dreaming up commercializing our abundantour gas line inducement act was the game changer, thanks to our outstanding gas line team. the legislature adopted a lot 58-1. -- this law 58-1. they know is the vehicle to 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 -- alaska's future, hot andand a'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. tom and chris and many lothersor s, many volunteers who just stepped up to the challenge as good alaskans. but nothing could have succeeded without my right-hand man, chrisshe 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 we must live by the optimistic,

pioneering spirit that made this a proud and free. we can resist enslavement to big, central government that crushes hope and opportunity. 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 -- earmark 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. ago, remember we had the bumper sticker that said alaska, we don't give a darn how they do it outside. remember that? i 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 -- to carve wealth 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. -- it worked.

persistent and pressed for the people's right to responsibly 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 and a securer of america, we can attain our destiny in the promise of our motto, north to the future. is energy independence, because 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 ouralaska 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. hear why i made the decision to chart a new course to advance the state. it should be so obvious to you. 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 you, for what is right, and for[applause] so as we all move forward together, let's about to keep championing alaska, and to and smaller government and freedom, and when i took the oath to serve you, i promised -- remember, i promised to steadfastly and doggedly guard 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. served you. our whole big diverse, full and fund family. -- and fun family. their support all along. i am thankful, too. i am blessed to have been raised in this last frontier. not an easy living, but it is a good living. here, it is impossible to lose your way, wherever the road may lead you. guide us home. let's all enjoy the ride. i thank you, alaska. god bless alaska, and god bless america.

>> thank you. thank you, governor palin, and to the state. at this time, supreme court justice daniel winfrey will administer the oath of office to 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.

sio help me god. thank you, sir. [applause] >> and governor parnell and intent governor campbell will now sign their oaths of office. -- lt. governor campbell. ♪ [playing "america"]

♪ [applause]

>> to many of you, the name of craig campbell might be new, but new to stake a service. he served as at john general to the alaska national guard forhe 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. we do for all of us in alaska. -- for all of us in alaska.

[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 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. the leadership you provided. 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. -- sean parnell. 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. outstanding job. for this audience, they may not know i worked with your fatheri watched your family as you grew.

statesman. you are always pointed in your direction and guidance, clear in what you expected, so that the understood it, and you were careful to make sure we alaskans in our heart, small government, economic development, and education are the foundation that will make a last as future strong. so thank you. 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. we share the same agenda for alaska. 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. here. our other daughter is a nursing california. she said she had to work today, so she could not come up to this. god bless the economy. she is there with our other granddaughter, and they are in our hearts today. in closing, i would like to thank the fair brings community for the -- the fairbank 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. good members of the air national guard. i love fairbanks. it 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. -- and god bless you, fairbanks.

[applause] the future of the state of alaska. [applause] >> thank you very much, lieutenant governor. i first met john cornell when we -- sean parnell when we are first elected to the house of representatives -- i first i have appreciated his, demeanor wonderful range of experience, the synod in the legislature, -- and the senate 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 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. 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. 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 billion dollars. sean had the difficult task of serving in the senate finance committee during the last twoif 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. 6eas we have this transfer of power, as the reins of power are 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. 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. as alaskans, we have learned to expect the unexpected. we are resilience. -- resilient. 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. -- and to lead 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 -- lush, green forests 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 -- alaska's 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. -- alaska still has much. and given today's economicyou

have my commitment to work 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 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. lieutenant governor, who is with us here today. [applause]

we thank these wonderful people, all the constitutional delegates lasting service and alaska. say thank you to my friend and palin. i want to say thank you] i want to say thank you to to the heath family. [applause] 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. -- your love of alaska and for alaskans. let's hear it for governor sarah palin. [applause] [cheers and applause] i want to say thank you to lt. -- to lt. governor campbell. thanks for being willing to step into this new assignment. you are conservative voice on fiscal issues, whether in cabinet meetings, your military service, you are our leadership, your leadership. -- your leadership. i just want to say thank you. working team with you, as [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 -- age came to river boat era. there were more efficient ways to move people and goods around our vast state. link to a museum piece. as alaska embarks on its next 50 years of statehood, we face a critical question period will -- a critical question. will alaska -- how will alaska move forward, or will time passed us by? -- pass us by?

had we create a strong economyhow do we thrive? had we not just survive? first, we affirm our core equal and that life and freedom are precious, that all political power belongs to you, the people, and that as alaskans, wein affirming life and freedom, military, guardians of these precious rights. our soil. thousands more still in families and close friends. we knowledge and honor the sacrifices made by these many today. and of our veterans. [applause] thank you to the men and women who selflessly serving our -- serve 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. -- have been spoken at all of our core values. -- have been spoken -- having

spoken of our core values. on economic policies, i will not be constrained by a short-term work for alaskas future. many of us feel the uncertainty of today's global recession. alaska is not immune from the economic downdraft, and we will continue to weather the stormin our rural communities, where intersect, alaskans a struggle their fish camps to operate them. there they experience then runs, leading people concerned aboutgood paying jobs in rural alaska are too few and to seasonal. impacted. amidst this news, we will notwe will position alaska for investment and growth. we will train and educate more alaskans for jobs. 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 for you. can help produce an economic climate right for job creation. energy. thanks to governor palin's working on gas options for alaskans. we remain committed to that work. energy resources and opportunities to disclose to ourthis means that cheaper energy is within our reach. it is now our communities challenge and our challenge and 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. were all motionless. i will continue the course set by governor palin and put the interests of alaskans first. [applause] are small businesses face, because i have been there. alaska for years, as did my parents before me. increase opportunities for small businesses. and to help our entrepreneurs keep more of what they own. 10 years from now, i want it said that alaska and spires andi 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 bythe health and restoration of destiny. strain. walk into any type one funded school, and -- any title-1 funded school, andkindergarten teachers trying to calm children traumatized at home. shelter and see women and children suffer. 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.

we have helped those who were forced to choose between heating oil and food. families. where every child has a say, or as a pawn to go to. i want alaska to be -- a safe home to go to. 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.

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. -- alaska's future. take responsibility for it. be involved. resources. take heart. the strong and courageous. -- be strong and courageous. together we can make a difference. like those who have served before me, i am firmly convinced ahead. -- alaska's the greatest days are ahead. -- alaska's greatest days are ahead. you, and that is because i know through with us yet. so god bless you, alaskans, and god bless the state of alaska.

[applause] >> tomorrow morning on c-span2, president obama, secretary of state hillary clinton, and treasury secretary geithner, joined by their chinese counterparts to discuss ongoing challenges and opportunities for the two countries. that is applied and 9:00 a.m. eastern on c-span2, and at 2:15, -- that is live at 9:00 a.m.. the new america foundation's director of american strategy. live coverage begins at 2:15. >> how is c-span funded? >> public donations? i have no idea. >> government?

>> c-span's gets its money from the taxes. >> sort of a public funding. >> i do not know -- c-span's gets its money from taxes. >> -- c-span's gets its money from taxes. -- c-span gets its money. >> c-span was greeted by america's cable companies, no government m&a, and no government money -- was created. -- was created by america's cable companies, no government mandate, no government money. >> today looks different than it did 35 years ago when i first came on board. i cannot tell you that i could not be prouder of our air and then at the way they have moved us forward in airpower. the policy transformations i have seen over the last three decades reflect our commitment to innovation as a service.

the pioneers solutions that enable us to successfully fly, fire, and in in error, space, and cyberspace, and with today's roulette with our flight plan marks another step in solidifying this in our air force history. by doing so, is institutionalizing been responsive, more capability for laying out our maximizing our efforts. it is no secret that the demand for the unique strike capabilities of our unmans fleet continues to increase. and so, our efforts are very timely. especially in how we explores current and future employment of these. how we developed