but a lot of it will still be private. >> reporting on the upcoming deficit reduction committee. you can follow his work at rollcall.com. he is also on twitter. rick scott is on tomorrows "washington journal." after that, robert groves discusses the demographics of working women in america and the affect motherhood has on some working women. "washington journal" live at 7:00 a.m. eastern here on c- span. republican presidential candidates mitt romney speaks

with the workers at the iowa state fair. after that, president obama on the economy and politics on washington. later, it david cameron speaks to parliament about the riots in london. >> as a journalist, i'm preparing myself for a very small salary. the reason people love fox news this because it is an experience, it is love, it is hate. >> aspiring high school journalists on ethics, the role of opinion and commentary and whether they get their news and information in this multi-media environment. >> c-span is covering the gop

presidential candidates at the iowa state fair. the first speaker was former massachusetts gov. mitt romney. he is introduced by carol hunter. >> thank you. >> good morning. welcome to the des moines register soap box. we are welcome -- proud to welcome our first speaker, the former governor of massachusetts, mitt romney. he is seeking the republican nomination for the presidency. let's give him and i will welcome. >> thank you -- and iowa

welcome. >> thank you for the work. it keeps our democracy free and open. i appreciate the free press and the work you do. what a great day. this is fabulous. i will speak louder. it does this work to? there is brian kennedy. i appreciate the fact that i'm here with folks have no for some years. we have 25 million people out of work are doing jobs been made

their skills. we have kids coming out of college that cannot get jobs. we have people wonder if manufacturing will lead our country and go elsewhere. iowa leads our nation and agricultural products and is a leading state in manufacturing. this is an extraordinary stage with a diversified economy. i what is fair in better -- fairing better than the nation as a whole. if you want to create jobs come it helps to have a job. i have spent my bike with the private sector. i have been doing what you have been doing, it trying to make ends meet.

i helped work to try to manage enterprise is to make a better if i could. i've learned the lessons of a free economy over 25 years. it is essential in washington to have someone who knows how the economy works and to spend time in the real of economy and whose sole experience is not being a politician. to let sen some assistance to washington in addition. -- let us send some citizens to washington in addition. the reason this recession was deeper than it could have been and the recovery is more tepid than it should have been is because the president does not understand that his policies and did the opposite of what the nation needed. he said he wanted to create jobs and the conditions that will let employers add jobs.

did promising to raise taxes help create jobs ta? no. if you are in energy intensive business, it did cap and trade cause anybody to add any more jobs? no. did banks give out more loans? no. on every dimension, the actions he took made it harder for entrepreneurs to build businesses, for banks to loan money, for businesses to invest in capital and people. the american people are still suffering. i predict that in november of 2012, president obama will not carry the state of iowa. [applause]

i happen to believe after a lifetime of work in the private sector and some service in the governmental sector, i let my experience as a governor. i did not inhale politics. i'm still a private citizen and a business guy. there are a number of things and economy has to do if it is going to perform better than the other nations. and allow americans to have a standard of living that leads the world. you have to have tax rates that are comparable with the competing nations. you have to have regulations and bureaucracy. it encourages the private sector. we have to have trade policies that work for us. we have to have energy policies that are intent to get america free of our dependence on foreign oil.

it tells south carolina economic have it because you are a right to work state. you do not have the rule of law. you have to have in cetaceans -- institutions that bill capital. not just capital of a physical nature but of s.a. emotional nature. we need policies that bring in the best and brightest. you have to have a government that does not consistently spend more money than it takes them. you have to balance your budget. [applause] over these last several months, we have watched people in washington debate about what we should do about the debt in this

country. there were a number of people on the other side of the aisle who pleaded it to raise taxes. the people on our side said absolutely now. we do not want to take more money out of people's pockets. we do not want to take more money out of people's pockets. we know a government that takes money out of people's pockets will not help the economy. government is already too big. during the days of john f. kennedy, government at all levels comprise about 1/4 of our economy, 27%. today comprises about 37% of the economy. we are inching closer to a nation that no longer has free enterprise. we insisted that we cut federal spending, capped it and had a

balanced amendment. we are going to rain in the excess of role of the government. -- reign in the excess of role of the government. it i do not know why the president is misguided. sometimes i wonder whether he takes his political inspiration from the social democrats of europe. i do not think europe is working there and it will not work here. i believe we got it right. they got it wrong. i believe in freedom and opportunity, american-style. i believe in capitalism and free enterprise. i believe in the constitution as it was framed by the founders. i like all the amendments, not just a few of them. those who served in state government are fond of the 10th amendment. i will give you the top line.

it says that the powers granted to the federal government are to be reserved by the state and the people. it when the president imposes obamacare he not only put in place a bad policy and entitlements we cannot afford, he treads on the 10th amendment of the constitution. that is why it will be appealed on day one of my administration if i am lucky enough to be president. i believe in the american people. i know a lot of you are cynical, skeptical. i love this country because of the people. i have had the chance to go across the country. i met people across iowa. we made a lot of friends. this is a fundamentally patriotic nation. we love america. not just for -- we left america

because of the values this nation has promoted a round the world and preserved. we show that the day in and day out. the show it were the national anthem is being played by placing our hand over our heart. that tradition began in the days of fdr. he asked us to recognize the blood that we shed. we've of this country. because of that love, $14 trillion in debt, $62 trillion in unfunded liability comedy hot lists -- liability, agee jihadis

want to kill us. the patriotism of the american people, if combined with leaders that will tell the truth and live with integrity and who know have to lead america back to greatness, we will rise to greatness and remain as we have always been, at the greatest nation on earth and the help of the earth. thank you so much. thank you appe. >> do you support a payroll tax on the rich people? >> you will have to repeat that. >> do support a payroll tax so the rich people pay their fair

share dax >? >> it has become popular. there was a time we did not celebrate attacking people based on their success. we did not go after people because they were successful. i watched this president attacking people. if you want to speak on a you can speak. right now it is my term. let me continue. we have to think about what is a fair share for the american people. we do not want to raise taxes on

the american people. government is too large already. we want to restrain the growth of government. the promises we are making 20 year olds and 30 your old hat to the promises we can keep. the ec to raise everyone's taxes. -- you would have to raise everyone's taxes. right now those programs combined would have to rise to 44%. >> i am on social security. >> i am glad spirit hold on just a moment. -- i am glad. hold on just a moment. >> you came here to listen to the people. >> hold on just a second, let me speak. [unintelligible]

[unintelligible] >> let him go ahead. >> we're also on medicare. what are you going to do to strengthen social security? what are you going to do without cutting benefits? >> you have had your chance. anything else you want to say? >> i want to see what you're going to say. >> you get to ask your question and i get to give my answer. if you did not like my answer, you can vote for someone else. [applause] are you ready for my answer? i'm not going to raise taxes. that is my answer. if you want someone that will raise taxes, you can vote for

barack obama. he is killing this economy. 25 million people do not have jobs and cannot find jobs. next question. you have had your turn, i had my turn. >> if you were elected president, would you do the same thing and look at the revenue side of the equation to raise the budget? >> i closed loopholes on big banks that were of using our tax system. i would do the same as president. in my opinion, the loophole as when someone takes advantage of a tax law and the way that was not intended. we had in my state a special provision for real estate enterprise. it provided lower tax rates in

certain circumstances. some banks found out that by calling itself realistic companies they get a special tax break. we said no more of that. there are taxpayers to find ways to distort the tax law and take it vantage in ways and not intended by congress. absolutely i would close those loopholes. there a lot people that used those words to raise taxes. i will not raise taxes. that i will not do. >> i have a peaceful question. i am a peacock farber and a schoolteacher. i supplement my income raising peacock spirit are peacock farm -- peacocks. our peacock form went under. what promises can you make

for small businesses to be better? >> i will not promise the checks. >> i wanted to earn its. when they get on the public stage, and they promise all source of free stuff. it is time to tell people the truth. we have to earn what we spend. we cannot spend more than we earn. we cannot go to other nations and say give us your money so we can spend more. i am going to make america the most attractive place in the world to start a business, to grow and expand a business, up anywhere in the world by making sure our corporate tax rates are the same of other nations around as. right now they're the highest in the world.

i want to regulations to be competitive. e is one of the biggest exports we have. people understand the importance. this president has not entered into any trade agreements. other nations have put together for a different trade agreements. we need to do the same thing. i will make it easier for you to sell peacocks to other nations if they want to buy them. what do they buy? >> the others. -- >> what do they buy? >> of the feddethe feathres. ers. >> i have an uncontroversial

question. can i be next? >> no. >> congress has voted itself [unintelligible] why? >> he is a senior citizen but the last two years has not seen a raise. congress has voted himself a raise but not him. it to and make sense, wouldn't it for congress to link their pay to what is happening on ?ocial security ta they recognize i and other people were talking about this. we want to make sure we can keep the programs in the next generation's know they will have the programs. you want to raise taxes that that is your right.

vote for someone who wants to raise taxes. that is the nation of a free society. your turn has been heard. social security cannot add a single dime to the deficit. do you agree or did i am also a teacher -- that social security should take no part in the negotiations?

>> do i believe that social security should take no part in deficit-reduction negotiations ? social security, medicaid, and medicare account for half of spending. >> that is a lie. >> let him talk. >> if we are going to be able to balance our budget and not spend more, we have to make sure the promises we make our promises we can keep. there are various ways of doing that. >> corporations. >> corporations are people, my friend. where did you think it goes?

he then beings. -- human beings. you could raise taxes. you can make promises that you can keep. higher income people receiving less rapid growth in their benefits. you want to give wealthier people in a bigger portion? that is your right. we should have progressive indexing. we should have a higher retirement age. that is my view. we do not make promises we cannot keep. we have a few folks up front that got here early to make their voices heard. my guess is that they will not be voting for me. they can vote for president obama.

i am the person that one not raise taxes. thank you. >> thank you, governor. >> harry doing today? -- how are you doing today? what do you recommend? >> the chicken strips. >> the chicken strips? they are delicious.

good luck to you. have a good day. this is wonderful. thank you so much. it is good to see you. i do not take questions and was hit during a press conference. -- unless it is steering a press conference. i do not want to answer questions on a sidewalk. how're you? it is good to see you. >> you are a pretty good looking

guy. >> why thank you. how're you? good to me you. thank you for saying high today. how're you doing? had a great day. it is a family affair here. how are you? where are you from? >> iowa. >> riceville. >> you are a ways away from

home. >> how're you? it is nice to see you. how are you? t hank you. i appreciate that. thank you. good to see you. >> we're going to beat the record if it stays this late. >> in that something? something that is what is the total population of the state? 3 million -- isn't that something? what is the total population of the state? >> 3 million. >> a big crowd.

>> you want to be seen with me for the next hour or so. >> it has been fun. people have been very friendly. we are going to go see the pork producer. how are you? good to see you today. how are you? hi, there. nice to see you. thanks for saying hi. good to see you. h i there. good to see you.

thank you. good to be here. what is yo uur name? sara. hi. nice to meet you. nice to meet you. how are you today? thank you so much. senator. miss the nice to see you. how are you today? thank you. good to see you. did you get the picture? get the senator here.

senator grassely. >> 1, 2 -- >> bingo. >> how are you? hello, general. nice to meet you. excellent. how are you? is that right? i met with the iowa national guard. do you do senior level? >> all levels. >> nice to meet you. what is the nature of the relationship you have with the leaders inco's of codex >> must have a relationship with the

national guard -- with the leaders in kosovo? >> most have a relationship with the national guard. the second to engagement has a owa totion here and i'llin itow help foster the security. we have been doing this for about 20 years. we had a dinner in washington, d.c. we celebrated our stay partnerships. >> congratulations. >> thank you for your service. >> how're you? how are you doing today? terrific. how're you? how are you? good to see you. where is your goodrandson?

technology. >> i recognize you. >> terrific. thank you. you are a handsome boy. and you are grandma? nice to see you. aren't grandkids just wonderful? look at this. did you win this tax what did you have to do? -- did you win this? what did you have to do? congratulations. he won it. >> good luck. >> thank you so much.

look at this little one. thank you. i appreciate your help. how're you doing? he has some pretty good ideas. thank you so much. a very impressive. i do not know the time frame.

it is amazing to see the progress over time. it is pretty remarkable. i am terrific. terry you doing? how are you today? great. this is a member of the law enforcement brigades. do you see all of these badges? this is senator grassley.

>> how long have you been near? congratulations. does not give better than that. i do not understand how people go for marriage to marriage. i am mitt romney. iowa. >> you are from iowa, right? are you working on a corn dog?

that is the best place. is this another one of yours? >> i think we can all use a litt luck. i appreciate it. are you with this picture here? no? in good to see you. i need a pen. there is. look at that. thk you. >> thank you, sir. >> thank you. >> clayton? is that right? your four years old? yes he is.

what is your name? >> lily. >> that is a beautiful name. a beautiful girl. are you eight years old? it is great to meet you. what is your name? joe, nice to meet you. let mom get a picture. >> thank you. >> thank you. >> hey, guys, how are you doing? come on down. >> i will come down. stay here until i get ba. >> meet you at the pork chop nt.d >> she is on the runway. [laughter] is this your little guy?

>> yes. and this is my grandson. >> that is terrific. you want something signed here? all right. thank you. how're you doing? good to see you. here you go. thank you, guys. whereou from? >> nebraska. >> they let you come over the border? >> yes. [laughter] >> we heard you would be here so we had to come meet your. >> thank you very much. a beautiful family. >> arizonan. >> arizonan? >> i voted for you the last time. >> i hope you're still with me. where from arizona are you from? >> southern arizona. >> how are you?

>> [unintelligible] >> i am running for all the people of the nation, not just a few, including you. i care deeply. you take care. what is this chinese umbrella doing here? no, it is just fine. you brought it all the way with you? this is amazin >> do you know droll peterson?

>> absolutely. >> we went to school together. >> if he knows you, you know him. >> you got your camera? right there. good to see you. hi there. how're you doing? is this your son? >> yes, all of them. >> these oral your kids? -- these are all your kids? >> yes, all of them. >> are you the has been here? >> yes. >> great family. good to see you.

what is your name? bella. give her my best, will you? >> i will. >> you live in this area? >> manchester. >> good to see you. >> what will you do for the college students? >> make sure you have a job when you get out of college. that is the best thing i can do for college students. make sure you have jobs. hi, how're you? thank you. >> i still have my yellow shirt. >> good to see you. i appreciate your help. it means a great deal to me. but as my car? ok, i ll put my name on it.

you have to get a blue one for this campaign. i see them around here. >> we will see you up in ames later. >> thank you very much. you're very kind. thank you. hi there, how are you? from texas? >> yes. >> i will be happy to do that. that is fine. do you have your camera? you got it. thank you.

thank you, i sure hop so. thank you. how're you doing? >> pfect. >> it is good to see you. are you on a brick? >> yes. >> you're doing a nice job. >> i have been to this event before. >> thank you for being here with those shirts on. >> it is good to see you. i will do th job. how areou? good to see you. you want to do a picture in your? >> yes. >> thank you, guys. good to see you. it is good to be here.

hi, how are you? have a great time at the fair. >> it looks like you are the fear today. [laughter] today. [laughter] >> i will do my best. he was just here. thataway? ok. is senator grassley up there? there he is. there he is. let's make sure you say hi. >> hi senator. >> everything going okay? >> is it harder to work in the state legislature or in washington? [laughter] >> i serve both places. each of the work as hard in their own respect. i think the best answer is that,

what ever level you are, particularly at the state level, you ara laboratory. >> the whole 10th amendment idea. i love that. ok. you will be there? even when i make a fuss? [laughter] >> i am with him. 57 years. >> 57 years and you're still putting up with them? >> he is putting up with me, to. [laughter] >> is a great day for the fair. >> is it not? >> yes. >> do you know these ladies? >> office manager. >> it is nice to meet you.

i see you and your husband here. i have to get you together. >> governor, how're you? >> lacy? clark's yes. >> her picture was in the paper. -- >> yes. >> her picture was in the paper. >> i have to more days in my rain today. >> has the no e been chosen yet? >> know. they are all in competition. >> where is the senator's first lady? where did she go? it will be the three of the sen. all right. did you get that? good.

thank you. good to see you. >> thank you. enjoy your day at the fair. right now, i am at kdes moines community college. i went to high school in knoxville. it is nice meeting both of you. thank you, sir. have a great day at the fair. >> will come to iowa. >> it is great to be in iowa. good to see you. you guys have been married while. >> yes. >> you put up with him? >> yes. good to see you.

>> hi, folks. i bet you are in line to get some pork chops. are you thinking about that? i hope so. hi there, how are you guys doing? thank you so much. good to meet you. it.ou're going to do >> i am planning on it. >> thank you so much. good to see you. how're you, sir? is that m for mickey? >> yes. >> are you eight years old? how old are you? seven. so not quite there. hi, how are you? beautiful girls. congratulations. good to see you. how are you today? good to meet you. hi there, how are you? in good to see you.

todd, good to meet you. thank you so much. >> let's bring the senator and you this way. the media has to stay on the side of the fence, please. >> how are you? >> haori doing?

clark so there's lots to be done. whatever you want.

[captioning performed by national captioning instute] [captions copyright national cable satellite corp. 2011]

>> pull one out. no flip over. no, flip it over. >> 20 minutes and then we roll it.

>> you guys have to pay 10 bucks for that, you know? [laughter] >> you would not l me in the kitchen anyways. [laughter] >> that is funny. i think we do a good job here. their rigo. -- theree go.

>> either. good to see you. >> oh, hi, how are you? nice to meet you. how're you doing? >> welcome to the iowa fair. >> thank you. it is good to be at the iowa

fair. >> i come here every year. i get the iowa chop. >> it romney. how are you, sir? >> good. >> high. wonderful. thank you, buddy. how are you doing? >> we want you to win. >> hello, how areou? the bank to see you. how are yo today? -- good to see you. how are you today? are you in the home-building business? your son is. give him my best. how are you? hi there. good to see you. take care. hi. how are you?

thank you so much. i will follow you, senator. watch out. there are folks right behind you there. hi there. isn't that something? i used to do a little work for them a while ago nice to see you. is this your grandson? >> iowa state alumni. >> i am it romney. >> i see you on tv. >> am i on tv? sorry about that. hello there. i am mitt romney. i am running for president. >> i know. >> bid to see you. -- good to see you. hi there. how are you doing. hi. how are you? good, thank you. how are you? great day for the fair.

i am mitt romney. >> i am her dad. >> good to me year. how are you? good to see if. -- to see you. >> i just missed zero. are you going to make it for the labor day parade? >> i do not know the answer to that. >> hello. >> how're you doing? he is a good man, isn't he? hi. how are you today? hi there. how are you today? have a good day. how are you? hey there. how're you doing? good to see you. hi there. i am mitt romney. good to meet you. hi. how are you? nice to see you.

thank you so much. hi there. how are area? good to be here. it is just about time to get some lunch. how are you doing girls? one, two, three period. all in one family? are you grandma? terrific. congratulations. ent grandkids wonderful? >> they are. >> i love them. i have to shake hands. ed nice to see y. hi there. how are you doing. hi there. how are you? you get in frontier. they know you. hi.

how are you? is that your grandson there? let's hear it. [duck call] very bad. >> sounds like washington. [laughter] >> i. houri it? -- how are you? >> would you mind signing my but? i would be half -- signing my book? >> i would be happy to. what is your name? is that your brother? no, cousin? how about this guy over here? that is your brother?

good to me you guys. is this your mom and dad here? how are you? nice to see you. i appreciated very much. have a great day, guys. hi there. how are you doing today? thank you for being here. how are you? i am mitt romney. let's shake hands. good to meet you. how are you sir? i am running for president. thank you. i appreciate that. good to be here today. thank you so much. very kind. how are you? i am terrific, thank you. i there. i am mitt romney. i appreciate that very, very

much. how are you? terrific. how're you doing? what is your name? are you 1 you are almost ready to vote. >> one more if you do not mind. thank you, sir. thank you very much. thank you sell much. -- so much. >> when are we going to get a pork chop? hi, how are you? is that your friend that just went by? say hi. i will take it. erie ago. take care. -- here you the hon.

take care. >> the of the thing weare about is all the money that retirees are losing in our iras. i can tell you th rainout. -- rightow. we need to do something. because they do not talk about people losing their ira is. >> it is happening a lot right now. >> senator, good to see you. thank you for showing me the ropes around here. ho that works. thank you.

>> where are you taking me? of, my gop booth. ok. i see. [shouting]

[laughter] >> what are you doing out here? >> i cannot stand the heat. >> is this value prep for a debate? >> exactly. i like toet out and see the folks, get a chance to talk to a few. how are you doing? >> good. >> is this your family here? good to see you. >> good to see you. good luck this year. >> captain america? congratulations. thank you. i appreciated. >> will your wife be at the debate?

>> she had jury duty yesterday said she is not going to be here. i have the seat that normally would have been for my wife for a friend. >> that is great >> i think i will skip the ride. there is enough up and down in politics not to do it physically. how are you doing? good to meet you. >> you handled the crowd well. >> thank you. >> i put a note in your pocket. >> of bed. was that today? do you want me to call it -- dead. -- good. was that today? do you want me to call you?

>> i appreciate it. >> you are going to lower the market on these things. >> thank you. you're the best. [laughter] >> i've block you in this morning at the hotel good to see you. i'm sorry i got you in this morning. -- blocked you in this morning. thank you.

welcome to iowa. bye-bye. >> i really appreciated the way you handled the heckler this morning. it was terrific. >> thank you. thank you so much. hi there. how are you? there is a john deere tractor. we had better get out of the way.

>> where is the best corn? nebraska or i/o what? >> i will give you cornflower -- nebraska or iowa? >> i will give you corn for nebraska. go huskers.

>> governor. >> thank you. quite sour we doing? -- >> how are we doing? >> the fare is nice today. not too hot. good day. thank you. >> i have a picture of you to pointing at each other.

i cannot give it to ap. >> holy cow. look at that. >>overnor. >> that sounds good. air conditioning. >> i am going to be going to new hampshire for a couple of nyour events. what do you like in new hampshire? >> i am partial to lake winnipesaukee. that is where i have a summer home. it is a great state. there is a north country in new hampshire. it is a lovely part of the state, particularly if you're going to be there in the fall. the leaves are brilliant.

>> i got to meet senator kelly. >> she is terrific. she is the best. you know, well, that corner veggie dog is pretty good. >> it looks pretty good. >> that is quite a hat. hi.

i there. houri doing? >> umar the man. -- you are the man. >> arehese your grandkids? how are you doing. you are eight. you're going to school this fall? but gray? that is exciting. -- third grade? that is exciting. >> i am a reagan republican. >> i appreciate your help. i need your help. look at that. that is the best thing at the fair. do you want a bite?

that is delicious. that pork is great. >> that and iowa corn, the other white meat. >> pork chop on a stick. where did that come from? >> good luck to you. >> where are you from? >> i live in the morning. -- des moines. i worked in insurance. i am retired. >> why is that? you only look about 50-55. what about your daughter? >> i love water. we go to florida in the winter.

we have a lot of lakes in michigan. we he the great lakes. i love being around water. >> very good. thank you. >> we had better let you go. we are getting more air time than you are. >> how do you win that? >> you hit the hammer. >> well spent money. >> thank you. >> how are you? youave got to try the pork chop on a stick.

>> watch more video of candidates, see what reporters are saying, and navigate the political landscape at c- span.org. reet candidate biographies, see the latest polling data -- read candidate biographies and see the latest polling data. former house speaker newt gingrich was one of the other republican presidential candidates meeting fair goers in iowa. this is about 15 minutes.

>> pretty day. remember when robert and you a road on -- ? >> yes, and you road ahead of us. >> knew it. you have got my vote no matter what happens. just remember, 80% of negotiation comes from the left 20% of the time. you know what i mean? >> i need your help. >> every time.

>> our you all doing? -- how are you all doing? >> mr. speaker, how are you doing? how did you prepare for the debate? >> we did the zoo this morning. how are you?

>> i am great. >> pretty dress. >> i will take a picture with all of you. >> great. >> sorry. i apologize. here we go. >> thank you very much. >> we need your help in january. >> absolutely. >> how are we doing?

>> how are you? >> pleasure to meet you. >> here we go. >> thank you. >> thank you very much, guys. >> i think that is where it is. >> ok. >> i am confused now.

>> one more. one more. >> it is very important. i promised my son-in-law. >> how are you? >> he has a very tricky job. good, how are you? watch out for the track there. >> thank you very much.

how are you? >> are you going to get things straightened out, buddy? >> with your help. we will be on tonight after the debate.

>> say. hey guys. >> thank you for being here. >> nice to see you. >> good to see you. >> i have passed these all out. i have passed amount 3 out the united states and canada. spain has -- passed them out throughout the united states and canada. spain has signed the petition.

nice to see you. take care. good luck. >> i need your help. i will be at the nixon library in about a week. >> you're too kind. you bet. >> hello, how are year? i need your help. >> i want my son back,. i want our troops back home.

>> how are you? how are you? i need your owl in january. -- your help in january.

>> is sort of like a -- a little bit like a waffle, with sugar. and your father was running up here to check it out. >> right here. >> pork chop on a stick. >> this is what we want right here. of, around the corner? >> remember, and it's on the farm? that was cute. it was good. >> bury dead. very dead.

-- very good. a very good. >> can i take a photo with you? thank you, sir. >> we do not want to walk on the sidewalk. >> i do not think you should attempt. the line, the line, the line, the line. >> we do not need to do that if you do not want to do that. >> that was off the record.

[laughter] >> we prefer not to. >> we will not do our lunch on c-span. >> as c-span does the coverage of the republican presidential candidates at the iowa state fair continues tomorrow at 11:00 a.m. eastern. we will hear from newt gingrich, ron paul, at tim collin de and michele bachmann. -- tim pawlenty and michele bachmann. then on saturday, live coverage of the republican straw poll begins at noon eastern with the history of the ball and it affects in campaigns. traditionally, the poll takes

place in years without an incumbent running for reelection. texas governor rick perry's staff says that he will announce he is running for president at stops in new hampshire and south carolina this saturday. we will have coverage of his announcement as well. >> now, president obama on the economy, jobs and the political climate in washington. he spoke at a facility in michigan. >> thank you. please have a seat. hello, johnson controls. it is good to be back in michigan. a couple of people i want to thank in particular. your ceo is here.

sitting next to him as one of my favorite senators, carl levin is in the house. i have just had a chance to see what you do at your plant. i got a tour from elisabeth. i think i understood about half of what she said. [laughter] at a time when americans are rightly focused on our economy, when americans are asking about what is our path forward, all of you, here at johnson controls, are providing a powerful answer. this is one of the most advanced factories in the world. in are helping america leavd a growing new industry. you are showing us how we can come back from the worst recession we have had in

generations and start making things here in america that are sold all around the world. that is why i am here today. i have said it before and i will say it again. you cannot bet against the american worker. [applause] do not bet against american on ingenuity. [applause] the reason a plant like this exists is because we are a country of unmatched freedom where ground-breaking idea as flourish. we have the finest universities, the finest technical schools, the most creative scientists, the best on to benares, all of which is why we are home -- best entrepreneur is, all of which is why we are home to the best

businesses large and small. that is why, even in these difficult times, there is not a single country on earth that would not trade places with us. not one. we have to remember that. we also know that we face some tough challenges right now. you know what they are. you live them every day. in your communities and your families. too many people are out of work and struggling to get by with fewer shifts, if your customers -- fewer customers, paychecks are not big enough. even though the economy has started growing again since the recession started in 2007, the fact is it is not growing fast enough. now some of what we are facing today has to do with events beyond our control.

if the economy was improving and improving through 2009-2010, the beginning of this year, suddenly it was hit with the unrest in the middle east that helped send gas prices through the roof. europe is dealing with all sorts of financial turmoil that is lapping up on our shores. japan pose a tragic earthquake hurt the economies of iraq -- japan's earthquake hurt economies around the world and cut off supplies that were very important to us. all of this has further challenged our economy. as we have seen, it is playing out in the stock market with wild swings up and down. it makes a folks and nervous and it affects the savings of families all across america. now, challenges like these, earthquakes, revolutions, those

are things we cannot control. but what we can control is our response to these challenges. what we can control is what happens in washington. unfortunately, what we have seen in washington in the last few months has been the worst kind of partisanship, the worst kind of gridlock, and that gridlock has undermined public confidence and indeed it does from taking the steps we need -- in p. did -- impeded us from taking the steps we need to make our economy better. what i want to say to you johnson controls is, there is nothing wrong with our economy. there is something wrong with our politics. [applause] there is something wrong with

our politics that we need to fix. we know there are things we can do right now that will help accelerate growth and job creation, that will support the work going on here at johnson controls, here in michigan, and all across america. we can do some things right now that will make a difference. we know there are things we have to do to erase a legacy of debt that hangs over the economy. but time and again we have seen partisan brinkmanship get in the way as if winning the next election is more important than fulfilling our responsibilities to you and to our country. this downgrade you have been reading about? it could have been entirely avoided if there had been a willingness to compromise in congress. [applause]

it did not happen because we do not have the capacity to pay our bills. it happened because washington does not have the capacity to come together and get things done. it was a self-inflicted wound. [applause] that is why people are frustrated. maybe you hear it in my voice. it is why i am frustrated. because you deserve better. you guys deserve better. [applause] all of you, from the ceo down, are working hard, taking care of your kids and your parents, maybe both, may be trying to save for your child's college education or saving for retirement. you are donating to the church or a food pantry, trying to help

the community. you are doing your part. you are living up to your responsibilities. it is time for washington to do the same, to match your resolve, matches your indecency, and show the same sense of -- match your decency, and show the same sense of resolve and discipline. that is what the american people are looking for. [applause] and if that can happen, we know what is possible. we know what we can achieve. look at this factory. look at what is happening in michigan. every day, hundreds of people are going to work on the technologies that are helping us to fight our way out of a recession. every day, you are building high-tech batteries so that we lead the world in manufacturing the best cars and the best

tracks. that does not just mean jobs in michigan. you are buying equipment and parts from suppliers in florida, new mexico, ohio, wisconsin, and all across america. so, let us think about it. what made this possible? the most important part was you. your drive, your work ethic, your annuity, your management -- your ingenuity, your management, the grit and optimism that says we have an idea for a new manufacturing process and we are going to take that leap. we are going to make an investment. we are going to hire some folks and we are going to see it through. that is what made it possible. but what also made this possible are the actions that we took to gather as a nation -- took together as a nation, through our government.

the fact that we were willing to invest in the research and the technology that hold so much promise for jobs and growth, the fact that we helped create, together, the conditions where business is like this can prosper, that is why we are investing in clean energy. that is why i brought together the world's largest auto companies, who agreed for the first time to nearly double the distance their cars can go on a gallon of gas. [applause] that is going to save customers belsen of dollars at the pump -- thousands of dollars at the pump. it is going to cut our dependence on foreign oil, promote creation, and jobs. that is how america will lead

the world in automated innovation and production and exports. -- automotive innovation, production and exports. that is how we got things done, and by the way, we did not go through congress to do it. we did use the tools of government, was working together, to help make it happen. now, there are more steps that we can take to help this economy grow faster. there are things we can do right now that will put more money in your pockets, will help businesses sell more products around the world, well put people to work in michigan and across the country. to get these things done we do need congress. there are common sense ideas that have been supported in the past by democrats and republicans, things that were

supported by carl levin. the only thing keeping us back is our politics. the only thing preventing these bills from being passed is the refusal of some folks in congress to put country ahead of party. there are some in congress right now who would rather see their opponents lose than see america win. and that has to stop. it has got to stop. we are supposed to all be on the same team. especially when we are going through tough times. we cannot afford to play games. not right now. not when the stakes are so high for our economy. and if you agree with me, it does not matter if you are a democrat, a republican, or an

independent, you have got to let congress know. you have got to tell them you have had enough of the theatrics. you have had enough of the politics. dop playing games. start passing bills that we all know will help our economy right now. that is what they have to do and they have to hear it from you. [applause] let me be specific. i will give you some examples. you have got to tell them to extend the payroll tax cut so that middle-class families will continue to have more money to spend. we passed in december. the average family received $1,000 from that tax cut. and you need to get it again because the economy is still weak. it is going to help you make ends meet. it is also going to mean more customers for business is, it will increase demand, it is right for the economy, and i

would sign that bill today if it came to my desk. [applause] tell congress to get past their differences and send me a road construction bill so that companies can put tens of thousands of people to work right now building our roads and bridges and airports and seaports. [applause] america used to have the best stuff, best roads, best airports, best seaboards. we are slipping behind because we are not investing, because of politics and gridlock. do you want to put people to work right now rebuilding america? you have got to send that message to congress. [applause] send a message to congress to come to an agreement on trade deals that will level the playing field and open markets

to our business so that we can sell more goods to countries around the world. [applause] we have got a lot of americans driving kias and hyundais. i was like folks in korea driving ford and chevy and chrysler. i would like to see that. [applause] i want to see billions of dollars more product sold around the world stand with three words, "made in america at." made in america. let's get it done. tell congress we need to reform the patent system so that all entrepreneurs like the ones who developed the technology here can develop their ideas into

business is more quickly, so that we can better compete against companies around the world. we should not make it so difficult for somebody with a good idea to translate that into a business. tell congress we have got hundreds of thousands of bright, talented, skilled americans who are returning home from iraq and afghanistan and i have proposed connecting those veterans looking for work with business is meeting their skills. we have 24-year-old and 25-year- old leading politicians, handling equipment worth hundreds of billions of dollars, and they come back here and they cannot find a job? let's put them to work. these are things we can do right now. [applause] these are things i have already proposed. we have worked out that it is. the legislation is drafted. let's get it done.

now, given the weaknesses of the economy, we need to do even more art than that. over the coming weeks, i am going to be putting out proposals week by week that will help business is higher and put people back to work. i am going to keep at it until every single american who wants a job can find one. now, we do have to pay for these things. and in order to pay for these things, congress has to finish the job of reducing the nation's budget deficit in a sensible, responsible way. not just with more cuts this year or next year. those cuts would weaken the economy more than it already is. we have already cut one trillion dollars in what is called discretionary spending. what we need is a long-term plan to get our nation's finances in

order. that is the only way we can invest in places like this. that is how we can fund the research at the department of energy. that is how we can fund the community college that trains folks to be able to work here. that is how we fund the infrastructure and technology that will help us win the future, by doing what you do, what families do. think about it. when things are tight, you cut out those things you cannot afford. even if it is tough, to pay for the things that really matter. you do not cut out the college fund for your kids. you stop may be going out as often. you do not stop taking care of your parents. who needs care. you cut back on some of the things that you do not really need. it is the same principle with

government. by the way, in your own families, i am assuming you do not just keep all the stuff you like and tell your spouse, you have got to get rid of all the stuff she likes or he likes. that would not work in my household. you do not just cut out the stuff that is important to you or keep all the stuff that is important to you and pat at the stuff that is important for your kids. -- keep all the stuff that is important for your kids. the same is us -- is the same for us as an american family. we cannot ask the middle class to bear the entire burden. we're not going to balance the budget on the backs of middle- class, working people in this country. everybody has got to do their part. [applause] everybody has got to do their part. everybody has got to chip in. that is fair.

we learned in kindergarten. that is what all this fuss was about in washington. are we going to deal with our deficit in a way that is there? that means closing tax loopholes for billionaires' before we cut college loans for young people. [applause] that means ending government subsidies for oil and gas companies that are doing very well before you cut health care for seniors. [applause] it means making sure that the biggest corporations pay their fair share in taxes before we got the investment in technology and clean energy that made this factory a reality. now, that is just common sense. it should have bipartisan support. these are things we could be

doing right now. that is how we can jump-start this economy and speed up the recovery. and get more folks working. while making sure that we get our fiscal house in order. we can do both. and i will be laying out more proposals in the days ahead, and i am going to keep after every idea and every serious proposal to help us grow this economy until everybody wants a job and find one. but i want everybody to understand here. the problem is not that we do not have answers. the problem is that folks are playing political games. we have a long way to go. we did not get into this mess overnight. it is going to take time to get this out. that is the truth. but that is no excuse for inaction. it is time to put aside all canadians. it is time to stop drawing lines

in the sand pit -- it is time to put aside ultimatums. it is time to stop drawing lines in the sand. in the aftermath of this whole debt debacle, with the market's going up and down as they are, there has been a lot of talk in washington that i should call congress back early. the last thing we need is congress' spending more time arguing in d.c. [applause] what i figure is they need to spend more time out here listening to you and hear how fed up you are. that is why i am here. that is why i will be traveling to a lot of communities like this one over the next week. that is what congress should be doing. go back comment. listen to people's frustration with all the gridlock.

listen to a frustrated folks are with the constant bickering and the unwillingness to compromise. and the desire to score points even if its is at the expense of our country. and if they are listening hard enough, maybe they will come back to washington ready to compromise, ready to create jobs, ready to reduce our deficit, ready to do what you sent them there to do. you know, america voted for a divided government. and that makes it tough. you have one party controlling the house of representatives and another party controlling the senate. so they voted -- you voted for a divided government. but he did not vote for a dysfunctional government. you did not load for a do nothing government. we did vote for a do nothing

government. you did not vote for a government where folks are just looking out for special interests. you did not vote for a government that is beholden to lobbyists. we have got a lot of work to do. and the only way we will get it done is if everybody, democrats and republicans, find a way to put country ahead of party. that is what i am fighting for. i am here to enlist you in that fight. you have got to hold everybody accountable, because if we can come together and find common ground, there is no stopping the united states of america. there is no holding us back. we can strengthen the economy. we can put our nation back to work. we can lead the world. we will make it through this economic storm and read calm water is stronger than we were before.

thank you everybody. god bless you. thank you. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] ver"ars and stripes forerve plays]

♪

["stars and stripes forever"

plays] >> in a few moments, david cameron speaks to parliament about the riots in london. in a move little more than an hour come off more in the house of commons, where the world

economy and the u.s. credit rating is discussed. then, mitt romney speaks with fairer go worst of the iowa state fair. >> tomorrow morning, we will talk about the economy and the debt ceiling with rick scott and representative jim himes. our series on jobs in america concludes with a segment on women in the workforce. our guests are robert groves and eileen appelbaum. >> this weekend, federal all olmsted is remembered for designing the u.s. capitol grounds, but justin martin looks

at his life as a journalist and abolitionist. then, "muzzled," the assault on an honest debate i want williams. then we're taking inside "the pirates of somalia." this weekend on american history tv on c-span3, we will visit the office of the archivist of the united states as he shows us historic documents that are occurring -- that are of interest to him. on the 50th anniversary of the bay of pigs invasion, a critical look at u.s.-cuban relations in the 1950's and the 1960's and

the actions of both the eisenhower and kennedy administrations. british prime minister david cameron recall parliament from its summer recess because of the riots in london and other cities. he told members that homeowners and businesses affected by the riots can be compensated by the government. following his remarks, members asked about sentencing procedures, curdle responsible -- parental responsibility. this portion is a little more than an hour.

>> what we have seen on the streets of london is completely unacceptable, and the house will join me in condemning them. keeping people safe is the first duty of government. the country has been shot by the most appalling scenes of looting, violence, the vandalizing, and feed a -- thieving. we have seen houses, offices, and shops rated, police officers assorted and fire crews attacked as they tried to put out fires, we have seen people being robbed injured andy lie leading industry. we will not allow a culture of fear to exist on our streets.

we would do what ever it takes to restore law and order and to rebuild our communities. we must be clear about the sequence of the yvette's. a week ago today, a 29-year-man was shot dead by the police in tottenham. clearly there are questions that must be answered and i assure the house that this is being independently investigated by the icc. we must get to the bottom of what happened. initially there was a peaceful demonstrations following his death and understandably and appropriately that police were cautious about how they dealt with it. however, this was then used as an excuse by opportunist thugs in days, then across london and in other cities, and it is completely wrong to say that there was any justifiable causal link. it is prosperous for anybody to

suggest that people were looting still -- the and people score -- dealing televisions -- that was not about politics or protests. it was about theft. in recent days, individual officers have showed incredible bravery and have worked around the clock, and they deserve our support and thanks. but became clear early this week was that there were far too few police deployed, and the tactics they were using were not working. police chiefs have been frank with me about what this happen. initially the police treated the situation too much as a public order issue rather than one of crime. the truth is that the police have been facing a new and unique challenge. with different people doing the same peak -- thing, basically looting, and it replaces, but

all of the same type. to respond to this situation we're acting decisively to restore order on our streets to support the victims of this terrible violence and to look at the deeper problems that have led to such a hard core of young people to carry out such criminality. first, restoring order. following the meetings of cobra, have taken action to ensure a more robust and effected police. because of decisions made by the metropolitan police commissioner and other chiefs up and down the country, there are now more police on the streets, or people being rested, and more criminals being prosecuted. the metropolitan police increase the number of the deployed to almost 16,000 officers, and this number will remain throughout the weekend. we have seen large increases in the province of officers and other affected areas.

police officers have been bused to areas of greatest need. more than 1200 people have been arrested across the country. we are making technology work for us by capturing images of the perpetrators, and even if they have not been arrested, their faces are known and they will not escape the law barrett as i said, no human rights concerns will get in the way of bringing these criminals to justice. anyone charged with disorder or other serious offenses should expect to be remanded into custody, not let back on the street, and anyone convicted should expect to go to jail. courts in london, manchester, and the west midlands have been sitting to the night and will do as long as is necessary. the crowd courts are now

starting to deal with the most serious cases. we are to be under constant review whether the courts have the sentencing powers they need and will act if necessary. as a result, the progress is being made in restoring order to the streets of london and other cities around our country. as i have made clear, nothing should be off the table. every contingency should be looked at. police are already authorized to use that during rams, and while they would not be appropriate now, we have in place plans for water cannons to be available. some people have raised the issue of the army. the acting commissioner of the metropolitan police said he would rather be the last man left in scotland yard with all of his management team and from the streets before he asked for on the support. that is the right attitude and one i share. but it is the government house responsibility to make sure that every future contingency is

looked at, including where there are tasks the army could undertake. everyone watching these actions will be struck by how they were organized by social media. free flow of information can be used for good, but also for ill, so we are working with police and industry to look whether it would be right to stop people communicating by these websites when they are plotting criminality. i would also ask the police if they need any new powers. currently they can only ask for these to be removed in a specific geographical location and for a limited time. i can announce that we are trying to give it please the discretion to require the removal of face coverings and in these circumstances, where they are related to criminal activity. on dealing with crowds, looking at the use of the existing dispersal hours and whether any

wider power of curfew is necessary. whenever the police face a new threat, they must have the freedom and confidence to change tactics as necessary. this government will always make sure they have the backing and political support to do so. the fight that has begun. there will be no complacency and we will not stop until this mindless violence is defeated and ball and order is restored. let me turn to the innocent victims. no one will forget the images of the woman jumping from a burning building where the furniture shop that had survived the list, but now has been burned to the ground tricks everyone would have been impressed by the incredibly brave words of a father in birmingham whose son was so brutally killed. too many shops have been vandalized or destroyed, and i give this promise -- we will help you repair the damage, can tour business is back up and running, and support your

communities. on repairing the damage is, i confirm that any individual that has suffered damage to or loss of their buildings or property as a result of writing can seek compensation under the right damages -- the rye at damages at. -- the riot damages act. is cessation of british insurers said they expect the industry to pay out in excess of 200 million pounds and have assured that claims will be dealt with as quickly as possible. on supporting business, we are setting up a new support scheme to help affected this is get up and running quickly. to minimize costs, business rate relief will be granted. we will defer tax payments for businesses in greatest need.

for houses and businesses that have been most badly damaged, we would have instructed the valuation office --is the support was raised with me yesterday planning regulations make it difficult for shops that but protective shutters. we will weed out unnecessary regulations to make sure that businesses can get back on their feet and feel secure. the government will meet the immediate costs of emergency accommodation for families made homeless by these disturbances. the secretaries of state and for

business have made available to the house details of these schemes today. the situation continues to revolve, and we will keep support under close review. let me turn to the deeper problems. responsibility for crime always lies with the criminal. these people were all volunteers. they did not have to do what they did, and they must suffer the consequences. crime has a context, and we must not shy away from it. i said before there is a major problem in our society with children growing up not knowing that no -- not knowing the difference between right and wrong. this is a culture that glorifies violence, shows disrespect for authority. in too many cases the parents of these children do not care where their children are or who there are with, that alone what they are doing. the potential consequences of

neglect and immorality of this scale have been clear for too long without enough action being taken. there is no one step that can be taken, but we need a benefit system that rewards work. we need more discipline in our schools for the actions to deal with the most disruptive families. we need a criminal justice system because draws a clear line. at the heart of all of violence, it is the issue of street gangs. territorial, hierarchical, an incredibly violent, they're mostly composed of young boys, mainly from dysfunctional homes. they earn money to crime, particularly trucks, and are banned together by loyalty to a territory can leaders. -- gang leaders. in the last few days there is evidence they have been behind the coronation of the attacks on the police and the looting that has fallen.

i want to use the record of success against gangs from cities like boston in the usa have done this by engaging the police, the voluntary sector, and the government, and i want this to be a national priority. there are further sanctions available beyond the criminal justice system local authorities already have the powers to even the perpetrators from social housing. some authorities are already doing this. i want to see others followed their lead and we will consider whether their powers the to be extended. i will work with the secretary of state for work and pensions in a program of action to deal with the gang culture and report to parliament in october. i believe we should be looking beyond our shores to learn lessons from others who faced similar problems accou.

the problem is not just in gangs. there were people who saw shop windows smashed and who thought it would be ok to go in and steal. it is not ok, and these people will have to face the awful consequences of their actions. mr. speaker, in the past few days, we have seen a range of motions sweep this country -- and there, fear, sadness, and finally determined result that we will not a violent few beat us. we saw this result in the people gathered in manchester, with brooms to clean up our streets. we saw it in those who court -- to patrol arrested the night to determine whether spirit rissole hundreds of people who stood guard the site of all protecting it from vandalism. this is a time for our country them altogether. to law-abiding people who played by the rules and who are the overwhelming majority, i say the

fight back has begun. we will protect you. if you had your livelihood damaged, we will compensate you. we are on your side. the loss minority, the criminals who have taken what they can get, i say this -- we will track down, we will find you, we will charges, we will punish you. you will pay for what you have done. we need to show the world which is not on appalled that the perpetrators of violence we've seen on our streets are not in any way representative of our country, nor of our young people. we need to show them that we will address our broken society, we will restore a sense of stronger morality and responsibility in every town, in every street, and in every state. a year away from the olympics, we need to show them the britain that is not destroyed, but that builds, that does not give up, but stands up, that does not back, but always looks for, and i commend this statement to the house.

>> today as the house of commons we stand united against the vandalism and violence we have seen. the victims of our country, who have seen their communities damage, and the confidence after their own space be undermined, there could be no excuses, no justification. this behavior cannot be allowed to stand. we will not allow it to stand. i want to join the prime minister in mourning the loss of life we have seen, including those who have been killed in london and birmingham. our thoughts are for the families and friends of those

who have died. we stand with a man who is the true face of britain, a brit ain of which we are proud. i want to thank the people who have been doing the work and our emergency services. we salute them for their courage, dedication, and their willingness to put themselves in harm's way for our committee. thanks to them, a degree of order has been restored. on all sides of this house, we know what the public wants and are entitled to -- in return to normality as well as order. normality does not need jobs having to close at 3:00 p.m. because of looting. normality does not mean being fearful in your own home. they want to have back the most fundamental of all liberties --

the ability to go about their business and lead their lives with security and without fear. they have a right to expect it, and to make it happen. mr. speaker, to do this parliament needs to do its job. united against the violence, and been the place where we debate all of the issues involved. how we have got here, what it says about britain, and what the response should be. on the army, i would agree with what the prime minister said, which is this is a job for the police. let me say something about what fonz is the army might be able to do to relieve pressure on the police. he also confirmed that the additional operational costs, that the police are now facing, will be funded from the treasury reserve and the place additional pressure on our already threatened budget -?

kenny also confirm that -- can you also confirm that the increased presence will stay on the streets? police on our streets make our communities safer and make the public feel safer. given the absolute clarity the public has for a visible police presence, does the prime minister understand that it is not right that he goes ahead -- [unintelligible] will he now think about this? the public are clear they want to see swift, effective, and tough actions to send a message about the penalties and punishment for the violence we have seen. we must seek swift progress. can the prime minister confirm that there is a capacity with the courts to deal with cases quickly, not just with the first appearance, but throughout the trial process is right that the

prosecution service is taking on the aggravating circumstances within their horrendous acts we have seen took place in recent days. does the prime minister agree that that assistance we have those circumstances at the front of their minds so those found guilty of this behavior received the top sentences they deserve and the public expects to as the prime minister said, we have been reminded about the importance of the cctv in catching those responsible. we need all of our cities back on their feet and operating as normal. that work began -- and i pay tribute to the heroism of thousands of volunteers who showed the true spirit of those in our country -- i welcome what the prime minister on all the

different elements of help he announced. can he reassure us that the help provided will meet the need and there will be an arbitrary cap on what he announced it turns out for the resources are required, and can he assure us that these people can get on with rebuilding their lives on the people, the prime minister's set in 2006, understanding is the background. it does not mean excuse in crime, but it will help to tackle it. seem to explain it is not to seek to excuse. of course these are acts of individual criminality. we all have indeed ask ourselves, why are the people who feel they have nothing to lose and everything to gain from want and vandalism? we cannot of afford to discuss, to let it pass, to calm the situation down only to find ourselves in the same position

again in the future. mr. speaker, these cannot be laid at the door of any single government. the causes are complex trade statistics solutions will not r,ovide the answer tick the decent people on the streets of london tommy i will tell the prime minister is they want their voice to be heard. they want us to go out and listen to them and think about solutions better necessary. before saying we know all the answers, we should all do so. can the prime minister explain how those in areas affected will have their voice heard as the government finds a solution to these issues? will the prime minister agree there must be a full independent commission of inquiry, looking at what happened in recent days and what lessons we need to learn pulled not an inquiry

sitting in whitehall, of reaching out and listening to those affected by this terrible events. we need to look at the acts of all the issues of matter. the responsibility we need from top to bottom, including parental responsibility, and and do a take-what-you-can culture, and the prime minister is right, we need to deal with the gangs in our cities and not something we did not know about before the riots. we're -- we look urgently at the report published lack -- last june which had a series of recommendations about what the government should be doing it tackle gang culture. of course as we look at the solutions we need, questions of hope and aspiration are relevant. the provision of opportunity to get along in life -- when we

talk about responsibility, we must not forget ours, not for the tiny minority, but the majority of law-abiding gun people. they are a generation and this is not about any one government word about the prospects and we cannot afford to fail and. hours must be one society. we all bear a share of responsibility for what happens within it. it is right we came back to debate these issues. it is right the order must be paramount, but it is imperative that even after order and morality are restored, which did not ignore the lessons we must learn.

we cannot afford to move on and forget. for all the people who have been in fear this week, for those who have lost loved ones, open businesses, we owe a duty to insure no repeat of what we have seen. that is our responsibility to the victims. is our responsibility to the country, and we on this side will play our part in making it happen perez -- make it happen. >> may i thank the gentleman for what he said, and he made a number of points. he is right to praise the emergency services and what they have done. it is remarkable that in spite of the fact that fires have been started in many cities across our country, there have been no casualties from those fires, and i think that speaks volumes about the professionalism of our firefighters nationwide barracks he says it is informed that as soon as hubble we get

our streets, cities, towns back a real sense of normality. that has to start this increased presence so people can feel the confidence to go out, and i believe that so our cities become the great places we want that to be. he asked questions about police, courts, and that we say a word about each. on the police, what i said about the army, i chose my words carefully. none of us want to see a break away from the great british model policing where the public are the police and the police are the public. i think governments have responsibility to look ahead for contingencies and potential problems and asked potential problems and difficulties in advance, and that is what cobra has done. that could be done and would free up elise for more front line duties. this is not for today or for tomorrow. it is so you have a contingency plans in case it became

necessary. he asked about operational costs. the treasury reserve is being he is. he asked about numbers beyond the weekend. they want to assess the intelligence of the stores before making decisions, but as far as the government, they should feel free to deploy as many police they need for a long as the knee. is restored order on our streets. he raised the issue of police budgets, and this will be debated. let me make a couple points. what we are saying, over the next four years we are looking for cash reductions and listen about this. this should take into account there is at present the funds the police how. next four years, i believe that is totally achievable without any reductions in visible policing. police are growing number --

[shouting] >> making their point. let me just make two additional points on that. today we still have 7000 trained police officers in back-office jobs. part or program in police reform is about freeing up police for front-line duties. that is why i can make this very clear pledge to the house. at the end of this process of making sure our police budgets are affordable, we will still be able to surge as many police onto the streets as we have in recent days in london, in manchester. i do think this is important people understand that. he asked about the court system and whether we are able to surge capacity and her magister's and crown courts. yes, that is exactly what cobra has been asking for in recent days. on sensing i chose my words carefully. it is a matter for courts to sentence but if you look at what the sentencing caption says, those people found guilty of

violence on our streets should expect to have a custodial sentence. he asked questions about cctv. we fully support cctv. we want to regulate it to make sure it is used properly but it has been an immensely by able as i've seen for myself in police control rooms up and down the country. he asked about in terms of communities, whether they would be any cap on the money available for communities to of course the riot damages act doesn't have any cap at all. because were allowed to 42 day period people will be able to apply to the police and the government will stand behind the police. when it comes to the deeper lessons i think he's right. he quoted a speech i made. i said it is explaining doesn't mean excusing, and he's right to say the causes are complex. i hope in the debates we have the causes don't immediately fall into the discussion about resources. we have deep moral failures you don't hit them with a wall of money. i think it is right, actually

key word the use and that i used is the issue of responsibility. people must be responsible for the actions. we are all responsible for what we do. finally, he asked about the question of how we'll listen to communities and what sort of inquiry is necessary. i think in the first instance, i found some talking to many members of parliament on both sides of the house who are deeply in touch with their communities, keep in touch with their police forces and police chiefs, one of the first things we can do is properly bring to bear all the information we are hearing from our communities. i understand the home affairs select committee will hold an inquiry and i think we should try and ask a parliamentary inquiry to do this work first. but i thank them for the general tone of what he says and hope we can keep up his cross party working as we do with a difficult problem. [inaudible] instead of rounding them up.

does the prime minister remember that in 1971 at the peak of the opposition to the vietnam war in the united states, that the u.s. government brought 16,000 troops into washington in addition to the police, that they rounded up the rioters, they arrested them, and they put 40,000 of them into the d.c. stadium in one morning? has he any plans to make the wembley stadium available for some of the youth? >> i want the wimbley stimp to be available for great sporting events. and i think it's important as we get back to a sense of normality that sporting events going to let me make this point. he makes an important point which i think to be fair to the

police and all the should think carefully before we start criticizing police tactics when they're the ones in the front lines. be fair to the police they now say that i think to begin with they spend too much time concentrate on the public order aspects and not enough on the criminality aspect. it has been a greater police presence on the streets and the greater are risking of people is help to bring the situation under control. the police themselves when she said to me yesterday it's time to tear up some of the man you about public order and restart. restart. he said where done this many times before and the police will do it again and we'll get it right. it's in that spirit we should praise british police. >> i want to accommodate members but i issue my usual exhortation with particular force for brevity. >> what the prime minister said about the death of mark duggan and, indeed, about compensation for victims. 45 people have lost their homes,

burned to the ground, run out of their homes during their children in their arms. and their crime is rare with the police. we can have this debate today, but it is no replacement for hearing from people themselves. will the prime minister, and speak to those victims? ended the to the independent shopkeeper, hairdressers, jewelers whose businesses are lying in centers? and what he also commit to a public inquiry that looked at why initial skirmishes were allowed to lead to a situation in which the great roman road now is in centers? >> prime minister? >> i will certainly take up the honorable gentleman's invitation to go and hear for myself. i found in a visit i made real anger on the streets about what

happened, about how it can be allowed to happen. and just a lot of questioning of the police tactics and police presence. as i said in my statement, to be fair to the police i think to begin with the cost of the situation with mark duggan they were hanging backward very good reason. they could understand that they accept that went on for too long. the police presence need to be greater and it needed to be more robust and it needed to be protecting peoples homes, people's shops and people's houses. we will now do everything we possibly can to get those people we house quickly, to make sure that money is available. i know my right honorable friend has been in touch. i think all of the local government leaders affected and will keep that up. entrance of the inquiry, and what it was honestly i think we should start with a home of of ursula committee inquiry. let them do their work and let's take it from there. >> mr. john leech. >> thank you, mr. speaker. was a prime minister media organizations to immediately

release all footage of criminal behavior and assist the police in bringing criminals to justice? >> i will certainly do that. i was impressed in the control room of the west midlands police yesterday how amateur photographers have been sitting -- seen in footage to help the police arrest those who are guilty. as has been said today, everyone has a responsibility media has responsibility and i hope they will act on it. >> mr. jack straw. >> thank you, mr. speaker. mr. speaker, no one disputes were second the prime minister's determination to meet what he describes as a duty of government to keep the streets say. but will he not understand that his repetition amounts to treasure lines, about police numbers, and police budget, and also -- [inaudible] put a big of him to recognize the reality that these cuts will lead to fewer police on the streets? but also that he must reverse

the softer sentencing plans his justice secretary and stop the looting of this plan the justice sector has to close britain when there is no presently an urgent need? >> prime minister? >> first of all i don't accept what he says about police numbers. and, indeed, neither do chief constable. many chief constables, if i take the chief constable of the thames valley convoy she said is what i haven't done at all is reduce number of officers who did a control selection, so the author you see in vehicles, on foot, bicycles, we haven't got those numbers at all. let me make this point i think one of the things demonstrated by the last three days where we have 32000 officers is they could take the action to surge from 3000 on the streets to 16,000 on the street. i think that is a demonstration of using what you have to maximum effect.

>> while metropolitan police officers showed great courage and determination of a high degree, over the last few days, whether prime minister agree with my concerned, that there were boards that police officer on several occasions were instructed to stand and observe, rising -- rioting and looting that would take place? would he agree with you that is not an except obese or? if the police are concerned because of the province after the g20 some that he might be criticized for overreacting, there is an urgent need for fresh guidelines so that there is no ambiguity that it is the police and not looters and rioters who control our street? >> we will be looking again at the guidance. let me be clear, there was no instruction to police officers to stand back. but as i've said anything police chiefs have been very frank about this, that the balance between what is right or public

order in what is right for stopping criminality, looting and feeding, that balance wasn't got right to start with. they admit that. except that. but they were to be fair to the police who do this for difficult job on all of our behalf. they were facing a new set of circumstances. yes, they have had rights before. is david looting before. yes there's been violence and vandalism before. but we have and the country before had the same thing happening in different places with different people all doing at the same time. that was a challenge for them. challenge i believe that are now meeting actually but they didn't get everything right to start with. they are the first to admit that. >> i'm grateful for his telephone call yesterday. what happened on tuesday night was not about protests. it was about delivered organize violent criminality. will the prime minister give his full backing to the police to intervene in the circumstances? because it was the case of some officers had instruction where they didn't have riot gear, where they were not trained, they had to stand by and watch

what happened. the effect on public confidence is devastating. will he ensure the police have the backing and that confidence, review the guidance so it never again do we see the police fall back in the face of a violent mob as we saw? >> she speaks all the authority of a former police minister who knows this issue well, and i know discussed with the police. could what happened was unacceptable. tragically it reverse very many good years of excellent work, breaking up games, take on organized criminals. i suspect what happened is those gangs and criminal sought as an opportunity to reassert themselves. all these lessons must be learned that i know the great manchester police chief i've spoken to wants to learn the lessons, is not right ever to seize control of our streets to haul against -- two hooligans. the time to learn the lessons is

now. >> david davis. >> thank you, mr. speaker. and i commend the prime minister for his decision on action on gangs, but i would like to raise another issue. he quite rightly raised or told the house, in fact the whole country was moved by the words of the father yesterday. when the father made those comments come he did so against the background of some ethnic tension to try to calm the circumstance there. there's a risk at least that evil people try to use these complex to raise for the ethnic tension in the future is a government going to take action to lives of the need to make sure that is not done? >> the government will certainly do that. i was in birmingham yesterday joined a meeting of committee leaders who came from all religions, all creeds, all races, who came together to make sure that the communities did not respond in an inappropriate

way to the dreadful events that happen having. i patriot do chief of the west force them to leader of the city council and to all those people who form that meeting and went out and spoke to the committees and appealed for calm. i think this seems we all saw last night of communities coming together in birmingham to try to stop the violence was a model of how these things should be done. >> what justification can there be, bearing in mind what the prime minister has just said, for very experienced police officers who serve 30 years or more are so been forced to retire? and isn't it, where there is no adequate police presence as has been the case once or twice during the last few days? >> i think the honorable gentleman is entirely right. yesterday when it was the number of police officers or something

like doubling overnight compared to the previous night. i suspect this is happening in other parts of the westminster. the fact is that one of the lessons we need to learn is the ability to search the number of police officers very rapidly into our community when there are problems arising like this. let me just say again, the place to the difficult and dangerous job on our behalf. they learn from extreme. they don't always get it right. we must praise them when they get it right and we must i think here say that some of the tactics need to change. but not try to subsidy our own judgment for this. that would be a sensible approach. >> thank you, mr. speaker. my constituents and i witnessed some shocking events sunday and monday. but what was particularly shocking was the age of the number of culprits that were in the instance that night. with the prime minister assure me that he could ask the police

authorities to work with the education authorities in an attempt to identify many of these secondary school children who are out there causing these crimes because i certainly think that is a sensible suggestion but i think over and above that we have to recognize that the responsibility for the fact that some of these children, and i use the word children advisedly, rests with opinions but what we do need to have is a sense that parents will take more responsibility for their children and teach them the difference between right and wrong and point out this behavior is unacceptable. >> it is undeniably that these criminals who looted, stole, rioted, cause intolerable damage to the people who are the victims of this, must be dealt with by the police and by the justice system. what i want to ask the prime minister is, do we regard these

people, however abject terror acts, is only cleanable to society and great cost to the police, to the justice system into the prison system, or will we have positive policies to try if at all possible to reclaim them to society? >> i agree with the right honorable gentleman. it was we must never write people off. however, bad are we must try and build a strong society where you can turn people's lives around it but i think one of the lessons from this is too many people have been left for too long and we need much earlier interventions if something were members on all sides of the house have spoken about. much earlier interventions than when we see children going wrong, we intervene earlier rather than leaving them to fall at school and lapse into life of criminality. >> thank you, mr. speaker. if these riots have broken up in other countries the police would've had at their disposal water cans, plastic bullets and

teargas. mr. speaker, across the u.k. british people watched on television while police were instructed stanback -- stand back. so the premise of a 24 hours notice of use of water cannon is enough? and this is not about police numbers but about police being given the tools to do the job. >> let me say to the honorable lady is that the pleased to have access to battering rams and they are able to make the decision to use them. and in london they came quite close to making that decision. that must be operated decision for the police. on issue of water cannons, the first on advice from the police is the cause on the whole they were not deal with very large crowds but very mobile crowds or people who were intent on criminal behavior. water cannons would not have been appropriate in these circumstances. that is the police do get the

point i've made is we should be ready for every possible contingency in the future so we should know how we would enter future questions which is why they are now available at 24 hours notice. that i don't agree with her about this, the greatest possible to sort of lawlessness we saw is the people to know that if they do that living, they do that violent, they will be pulled out an an arrest in the late and be in front of a court that night. that is the answer. they key to that is more police on the street so they're able to be more robust in a way they intervene. >> can i welcome all the steps taken by the prime minister from the start of these and join with him and others in condemning the criminality, and also praising the police. i, like he, without on the streets of london yesterday. they key issue was the police ability. does he say if a police force has to dip into the contingencies, in order to pay for what has been going on over

the last six days, that the government will reimburse all the money? >> can i think the right honorable gentleman for what he said and for the work i know his can and will be doing in the coming weeks. the fact is treasure is standing ready to assist police forces. clearly the bill for the metropolitan police force for these last few days is going to be large. and if they continue to deploy in these numbers it will get larger and the treasury will stand behind them. >> mr. simon his. >> those of us in the commands affected,. [inaudible] the place of the minority other officers trained and able to use right headgear and right equipment. can he look with home secretary at that thing reversed some of police officers have the presumption so they can act and intervene? will he make sure the full force of the law doesn't just go to the 50 committees of through communities but the adults with children who are also going into the shops and taking stuff, not just the children?

setting an example. >> on the first point, of course there will be a proper review in terms of what is the right balance between riot police and normal burro policing so we meet the source of emergencies better in future. of course, that will happen. in terms of prosecuting the guilty, the police should go after everybody. they have the cct images. there are people all over the country ringing up in explaining their neighbors just acquired a new 42-inch plasma screen. >> thank you, mr. speaker. the people of liverpool are united in the absolute criminal acts that wreak so much havoc caused so much fear in parts of liverpool over the last few days. but what specific things has the prime minister made to assist, to be able to be assisted in the

future coming? >> liverpool will be able to apply, not onto the scheme that existed through this new special scheme that doesn't have a threshold you need to cross in order to claim payments under. also the riot damages act is effectively unlimited in the claims you can make. as i said the home office will stand and police forces so there's a series of measures and of the written statements and house today so she can see full details and share them with her council leaders. >> i know the prime minister will agree with me that we in principle have the best police force in the world. however, will he agree with me it is time to please will refocus back to being crimefighters instead of social workers? >> i think the police have the clearest possible message that we want them to be a police force. we want them to be focused on crime. we don't want them fighting paper behind a desk, and i think

they've been very clear message from the whole country this week that people visible policing but they want very robust policing spent david miliband. >> the prime minister will be pleased as i'm that we know rioting or looting in south shields turkey has rightly praised the indie pendant, the professionalism of the chief constable. why didn't we want to get rid of them all and make them stand for election? >> we are not proposing to make chief constables stand for election. what we are proposing is to police commissioners stand for election, replacing police authorities. and the point i would make, the point i would make is this, that actually in recent days, in recent days i think these arguments that yes, you have independent police chief constables, yes, they have to be responsible for the judgment, but it's important they are accountable politically. there is a discussion that can take place between politicians and between police chief is a thoroughly good one. >> thank you, mr. speaker.

it was badly smashed up on monday night. and man is critically ill in hospital having been attacked when he tried to put out a fire in elizabeth. people are devastated. we heard the prime minister say those who are big enough to take part in the riots are big enough to take part in -- they will feel the full force of the law including prison sentences speak with yes, i can give her that assure that our to thank her for the briefing she gave me of what had been happening, particularly on monday night. i can give her that ushered. the cincy must be a matter for the courts. the guidelines council is clear that people taking part in violent disorder should expect to go to prison. >> thank you, mr. speaker. can i invite the prime minister to join with me, not only put on the record our gratitude to the place of work so hard the call

to our streets, but also the outreach and committee workers who have been at everest single night talking to people, to reduce tension and restore order in our streets in partnership with the police? can i invite him to meet with those people so he understands it is not a tiresome debate, but we must learn from the experience and restore order, not just in these next few days but everyday and are committed, across the country. >> i certainly happy to meet with the honorable lady. the point she makes that reclaiming the streets is not just an issue for the police, but it's an issue for everybody. i think it's absolutely right and we've seen fantastic examples of the right across our country. the point i was trying to make about resources is i hope we can have an, of course, i hope also we can have a debate about some of the culture, about some of the upbringing, some of the parenting, some of the deeper point that lie behind these problems.

>> david tc davies. >> mr. speaker, frontline officers were telling me last night they had been afraid to use measure of fiscal sorts because concerns about criticism. five minutes of power which have seen, so when the prime minister, i welcome this, we will be robust and do whatever it takes. kenya shows that members of the south will support the police if they have to strike people with battens? because force has to be met with greater force. >> i know the honorable gentleman speaks with great expertise as he serves as a special constable himself. the point is this. people do what robust policing. of course, the police have to be sensitive to things that happen in the past. sometimes the pendulum can swing too far one way and into for the other what i'm sure the message has been received loud and clear that went this sort of violent criminal behavior people what robust response. >> heidi alexander. >> the prime minister has talked about the wrong play by gangs and technology in the disorder

that has taken place over the last week. does he share my concern about the popularity and accessibility of internet footage glorifying gangs and knives? what we do to ensure these despicable videos are taken down? >> i think the honorable lady speaks very powerful. but also on this issue where frankly everyone has responsibilities, not just minutes of parliament, police, parents. media companies and social media companies who are displaying these images, and all of them should think about their responsibilities and taking down those images. that's why don't sector is going to a meeting with those organizations to see what more can be done. >> thank you, mr. speaker. two of the shocking images the prime minister virtue in his statement took place in my constituency. can i thank them for coming here on tuesday quick yesterday and today before my constituents finally got to see the kind of policing in terms of visibility

and robustness that they want to see every night. came here issue to me and my constituents that we're not just going to see a temporary change of police tactics, but a permanent one? >> i thank the honorable gentleman for what he did to introduce me to some of the shopkeepers affected homeowners in his constituency, some of them have been made homeless. i can given that assurance because i think one of the things that has been demonstrated the last few days as i said is the importance of searching police numbers quickly. there are 30,000 officers in the met. having just 3000 on the streets on monday, on sunday wasn't enough. that's what action was taken to increase a bit unsure lessons will be learned in that regard. [inaudible] with resources to support the police and what they're doing here, can ask the prime minister the context every doing the action of the police over the last few days, and using their

lengthy experience of right controls and inviting the police to handle the situation in the future speak with of course it's enormously helpful having -- who serve so well in northern ireland but it is an issue i raised myself and cobra about accessing their expertise in the police service in northern ireland. i would just make the point that i think one of the issues that we need to grip quickly was the fact that this was not a political protest. it was actually looting gangs. so every case is different. that's i think one of the difficulties police have to fa face. >> when the authority of parents and teachers and police have been eroded, consistently for so many years, and hopefully the prime minister will reverse the process but he himself has said again and again, it's the stability of families that can't. he's made tremendous progress. but before the election he said part of thi his marriage was thu

bring in a marriage tax allows but it still hasn't happened. will he now do it? >> as the honorable member knows, i support, i think we should support families and marriage in every way we can. i think we should set a simple test for all government policies which is this. is what we're about to do going to enhance responsibility, whether parental responsibly or the responsibility of the teacher in the school come the response a police officer on the street it is is going to earn have the response that we should do it. if it isn't we shouldn't. >> thank you, mr. speaker. does the prime minister realize that in times of economic downturn, inquisitive crime increases always? the difference this week was it was backed up by extreme violence and perpetrated by mobs. can i ask him to reconsider the cuts to the police budgets? you will be seen not to be getting into mob violence by giving into commonsense. >> i simply don't accept this

determined that when you get change in the economy there are automatic change in the levels of criminality. and, indeed, the figures over the last recession disprove that. we should be clear in this house that it is criminals that are responsible for crime. it is an individual act and we should hold people responsible for those acts. let me take this opportunity for paying tribute to the welsh police officers, that gave great support to police forces across england. >> mark pritchard spent can i congratulate on the leadership is shown and the initiatives that he has announced today? isn't not the case though that those local authorities that attempted to close down youth services should think again? and perhaps consider shutting off and closing down some of the more lavish firms enjoyed by some local authority workers? >> the point i would make to the honorable gentleman is every

organization, whether it is a local authority, central government, a police force, at a time whatever is having to make budget reductions has got to focus on the front end on the things that matter most. we're doing that at central government. police forces are doing that and local authorities should do the same. >> i was on the streets at the height of the rioting on monday night. and i know how frightened people are, and remained at and i believe most important thing is to regain control of our street. but on the question of the army, let me say this. when we are attracted, to further militarization of the situation to some members of this house, even to some of my own constituents, but let me say this. he will be aware that he who has ordered battering rams and water

cannons is against the use of these things in the current situation. and i say to this house, whether it is a popular thing to say or not, that the further militarization of the situation we face will not help and may bring things to and even worse level. >> first of all let me agree with what the honorable lady said. i think very private about the fact this was criminality on the streets and about how frightened people were. i agree with others who say now is not the time to take these steps to the point i would make is government has a responsibility to ask about contingencies, to work out what next, what if it got worse? those are responsibility we take seriously. let's take this opportunity to pay tribute to what the armed services do often do in our own country when it comes to floods and other emergencies. they play an incredible role and we should thank them for it. >> mr. speaker, would not write up a friend agree when facing

the circumstances we face it is nonsense that magistrate courts have to -- because their own sensing power are inadequate let's will he take steps to give magistrate courts how to deal with these cases? >> as i sit in my statement we keep these sensing powers under the that magistrate courts can sense of the six-month. they have been passing sensitive they've been doing that overnight. and also refer cases to chronic what i think is vital to make sure there's enough crime core capacity to deal with these cases quickly. >> mr. speaker, can i bet the prime minister to change his mind about a commission of inquiry? this isn't going to go away. we could wish it to go away. this is a complex changing social phenomena but we've got to understand in order to combat it. he announced this week a commission of inquiry, i'm a

great supporter as he knows, but it's not enough to lead to a select committee inquiry. to me that's not -- [shouting] >> i think we should have more confidence in our select committees in this house to do this work. i think the home affairs select committee doesn't excellent job. i don't know these things out in the future. at a start with that. sometimes commissions of inquiry have had to be ordered because committees in this house have been able to get to the information or the people. i don't see why that should be the case in this circumstance. >> thank you, mr. speaker. some cities have suffered hugely this week while others have avoided violence. and have managed to squash any trouble before it kicked off. when inquiries are established and when the select committee does its work with the prime minister incher we learned lessons on from those areas where violence was kicked off, but from cities where there was any trouble? and made we and learned lessons from what went right in those areas speak with i think she's

right. any inquiry should certainly do that. >> prime minister may i thank you for this where you met our decent citizens have become victims, had seen the buildings and businesses burned down, had seen offices and shops trashed. the people into war zone, because that's what was, we're making the plea, where were the police? for hour after hour after hour people were free to pillage and lived with no uniformed officers around. may i ask the prime minister, may i ask the prime minister impact on behalf of the people i met the last two days distraught and said people, the victims, i would ask prime minister, i would plead with the prime minister on behalf of my constituents to think again about police numbers because the please -- the people of london want more police in london and not fewer. to would be the wrong policy at precisely the wrong time.

>> with the right honorable friend, the time i spent in croydon was powerful to you about the immense frustration and anger that the shopkeepers and those householders and tenants felt. but i would say this to the problem was that the police were not on the street. the problem wasn't about police budget in four years time. the problem was about the the the other place right now. there are 32000 officers in the net. we need to get more onto the streets to more quickly and more of them to croydon. it is about now. it is not about the budgets of the future. >> thank you, mr. speaker. i very much welcome -- [inaudible] about social media. as part of that, what might be called the internet equivalent of the corporate it would seem the police have been wasting time dealing with false rumors about modern activity and the laws and building must be

updated. >> i think the honorable gentleman makes a good point. just as the police have been using technology more effectively, so criminals are now using technology more effectively. there are false trails that were laid on twitter and blackberry messenger and all the rest of the. i think we need a major piece of work to make sure the police have got all of their electronic capabilities that they need to hunt down the criminals. >> thank you, mr. speaker thank you, mr. speaker. can the prime minister say what measures he has in mind to strengthen families? and in particular, parental responsibility which so many members of the public rightly think is a big faction in all this? >> let me give them one area where we have made progress but i want to see further progress. that is the issue of discipline in schools. we've got to make sure that schools are able to confiscate things off children and are able to exclude children without being overruled by appeals bills. all of those things add to

responsibility. in terms of families it is making sure every single tax and benefit that we have is profound, is pro-commitment, is profiled as of this decrepit part of the prob clucks the chancellor also talked about the economic all look, including the possible downgrading. >> we come now to the statement of the chancellor of the exchequer. >> mr. >> people will be concerned about the turmoil in the world financial. globe. i want to update the house on what we're doing to protect britain there the storm -- from the storm and to help lead a more effective intername response to the fundamental cause r causes of this instability.

as of this morns, markets in asia and europe are a little calmer although some are still currently down. over the last month the dow jones index has fall p by over 14%, the french market is down 23 %, and it's striking that the german market is down 24% and even chinese equities are down 20% since november. bank shares in the all countries have been hit particularly hard, many sovereign bond markets, too, have been exceptionally volatile with market rates for italian and spanish debt soaring before falling back in the last three days. sadly, britain is not immune to these market movements. in the last month, the if ftse 0 is down by 15% and british bank shares have also been hit hard. however, while our stock market has fallen like others, there has been one striking difference, the market for our government bonds have benefited from the global --

here here! >> u.k. guilt yields have come to around 2.5%, the lowest interest rates in over 100 years, and earlier this week the u.k.'s credit default spread or the price of insuring against sovereign default was lower than germany's. this is a huge vote of confidence in the credibility of british government debt and a major source of stability for the british economy at a time of exceptional instability. and it is a reminder of the reckless folly of those who said we were going too far too fast. >> here, here! >> we can all now see that that approach would have been too little, too late with disastrous consequences for britain. mr. speaker, it is not hard to identify the recent events that have triggered the latest market falls. there has been weak economic data from the u.s. including revisions to previous gdp, and the historic downgrade of that

country's credit rating. and the crisis of confidence in the ability of euro zone countries to pay their debt has spread from the friday friday to major economies like italy and spain. but these events did not come out of the blue, they all had the same root cause: debt. and in particular a massive overhang of debt from a decadelong boom when economic growth was based on unsustainable household borrowing, unrealistic house prices, dangerously high banking leverage and a fail were -- failure of governments to put their public finances in order. unfortunately, the u.k. was perhaps the most eager participate in this -- participant in this boom with the biggest housing bubble, the most overleveraged banks and the largest budget testify sit of them all. now, history, mr. speaker, teaches us the recoveries from this sort of debt-driven balance sheet recession was always going to be choppy and difficult, and we warned that that would be the case.

but the whole world now realizes that the huge overhang of debt means that the recovery will take longer and be harder than had been hoped. markets are waking up to this fact, and that is what makes this most dangerous time for the global economy since 2008. i think we should be realistic about that, i think we should set our expectations accordingly. as the governor of the bank of england said yesterday and the head of the office for budget responsibility has also noted, the british economy is expected to continue to grow this year some 500,000 new private sector jobs have been created in the last 12 months. that is the second highest rate of net job creation in the g7. but instability across the world and in our main export markets mean that in common with many other countries, expectations for this year's growth have fallen. and that is what our response must be. first, we must continue to put our own house in order. i spoke again yesterday to mervyn king, and i can confirm

the assessment of the bank and the treasury, the british banks are sufficiently well capitalized ask holding enough liquidity to be able to cope with the current market turbulence. we have in place well-developed and well-rehearsed contingency plans. we must also continue to implement the fiscal consolidation plans that have brought stability to our bond markets. i believe the events around the world completely vindicate the decision of this coalition government from the day it took office to get ahead of the curve and deal with this country's record deficit. while other countries wrestled with paralyzed political systems, our coalition government has united behind the swift and decisive action of cuts and the emergency budget. while other countries struggled to command confidence in their fiscal forecasts, we have created an internationally-admired and respected and independent office for budget responsibility. these bold steps have made britain that safe haven in this

sovereign debt storm. >> here, here! >> our market interest rates have fallen while other countries have soared, and the very same rating agency that downgraded the united states has taken britain off the negative watch that we inherited and reaffirmed our aaa status. this market credibility is not some abstract concept, it save jobs and keeps families in this their homes. families are benefiting from the lowest-ever mortgage rates, and companies are able to borrow and refinance at historically low rates thanks to the decision we have taken. let me make it clear not only to the house of commons, but to the whole world: ours is an absolutely unwavering commitment to fiscal responsibility and deficit reduction. abandoning that commitment would plunge britain into the financial whirlpool of a southern debt crisis and cost many thousands of jobs, and we will not make that mistake. >> here, here! >> the second thing we need to

do is continue to lead the international response in europe and beyond. in the g7 statement greed to between finance ministers and central bank governors this week, we said we would take all necessary measures to support financial stability and growth. in the euro zone, there is now a growing acceptance of what the u.k. government has been saying first in private and now in public for the last year, that they too need to get ahead of the curve. individual countries must deal with their deficits, make their economies more competitive and strengthen their banking systems. existing euro zone institutions need to do whatever necessary to maintain stability, and we welcome the ecb's interventions through securities markets program this week to do just that. but this can only ever be a bridge to a permanent solution, and i've said many times before that the euro zone countries need to accept the remorseless logic of monetary union that leads from a single currency to greater fiscal integration. many people make exactly this

argument more than a decade ago as a reason for britain staying out of the single currency, and thank god we did. >> here, here! >> solutions such as euro bonds, mr. speaker, solutions such as euro bonds or other forms of guarantees now require serious consideration, and they must be matched by much more effective economic governance in the euro zone to insure fiscal responsibility is hard-wired into the system. the breakup of the euro would be economically disastrous including for britain, and so we should accept the need for greater fiscal integration in the euro zone while insuring that we are not part of it and be our own national interests are protected. that is the message the prime minister has clearly communicated in his calls with chancellor merkle, president car soaz si and other -- sarkozy and others this week, and i've done likewise in the g7 call of the weekend and will do so again at the september g7 meeting.

but this is a global as well as a european crisis and a -- at this august meeting we need an international framework that allows credit to countries like china to increase demand in debtor countries to make the difficult adjustments necessary to repay them. everyone knows what needs to be done, but progress so far has been us frustratingly so with lengthy disagreements on technical definitions, let alone any concrete actions. the barriers are political, not economic, so it is up to the world's politicians to overcome them, and there are no excuses left. finally, mr. speaker, the u.k. like the rest of the developed world needs a new model of growth. surely, we have learned now the growth -- surely, we have learned now the growth cannot come from yet more debt and more government spending. >> here, here! >> and, mr. speaker, those who

spent the whole of the last year telling us to follow the american example with yet more fiscal stimulus need to answer this simple question: why has the u.s. economy grown more slowly that be the u.k. economy so far this year? more spending now paid for by more be government borrowing and higher debt would lead directly to rising interest rates and falling international confidence that would kill off the recovery and not support it. instead, we've got to work hard to have a private sector that competes, that invest t, that exports in today's world. that is the only route to high quality jobs and lasting prosperity. in the developed countries and especially in europe, that means making the difficult structural reforms needed to restore competitiveness and improving the underlying performance of our economies. the e.u. should be cutting red tape, not adding to it. and internationally we have the greatest stimulus of all sitting on the table in the form of the doha round, a renewed commitment

to free trade across the world that should be taken up now. .. >> mr. speaker, in these turbulent times for world markets we will continue to lead the international response. we will redouble our efforts to

remove the obstacles to growth, and will stick to our plan that made britain a safe haven in the global debt storm and i commend this statement to the house. [shouting] >> mr. speaker, the shocking and inexcusable events of recent days in our city are today rightly the government first and immediate plan. in recent days in april and perhaps even of graver threat to our country stability and behavior, putting small businesses, jobs and mortgages at risk all across our country. so it is right the chancellor is updating the house and the country today on the state of the global economy. and the parlor state of the british economy, too. and in the same spirit, parks

and corporations which we've just seen from the prime minister and leading opposition, let me set out where we on the side of the house agree with the chancellor of the exchequer, as well as where we have grave concerns. first of all, the chancellor is right. we may the right decision not to join the single currency in 2003. we agree with the chancellor that a crisis in the u.s. does require more decisive and radical actions then we have seen so far. i welcome the fact he is now at large involving himself in these discussions, and is also preparing contingency plan if british banks come under threat. tough decisions in europe, but is it not clear that if european leaders so far demanding austerity from smaller countries is not working because it is nothing to do those economies growing? and without that, countries find it harder and harder to convince

the markets they can repay their debts. should the chancellor not finally take the lead in brokering the plan for growth, alongside european wide guarantees, your wide guarantees, to reduce debt service costs and stop spreading? mr. speaker, i also agree with the chancellor that months of political wrestling and inserting in the u.s. over the pace of deficit reduction have depressed confidence in u.s. growth. but does the chancellor agreed with both who favor a balanced and sensible approach to deficit reduction? and fairly rapid u.s. interest that could drive the world bank into recession? or does he agree with his friends, and we know he has many in the republican party, and in the tea party movement who have urged deeper and faster cuts and hailed the recent budget deal as to 90% of their demand?

is the chancellor on the side of u.s. federal reserve, from a treasury secretary a nobel prize winner, mr. speaker, or in the words of the business secretary, is the chancellor on the side of the right wing nuts? mr. speaker, it's also right that g7 finance ministers are now find discussing a coordinated response to what is a global crisis. but listening to the chancellor analysis you would think that britain is a bystander, watching public debt crisis unfold in the u.s., best told by individual countries taking their own actions against debts on his analysis the faster the better. so mr. speaker, this is now a global crisis, a global growth crisis on a global scale. does the chancellor agreed with me, it is the coming together of powerful negative forces in every continent, including here

in britain, continue to be leveraging by banks and the private sector, addressing tightening of consumer spending, and fiscal retrenchment from government, it is those forces together which now, a warning, this crisis could become as great as the crisis of the early 1930s. the 1930s, mr. speaker, when governments around the world ignored their collective responsibility to promote growth, plowed on with austerity of entrenchment and ushered in a decade of depression, unemployment protectionism and fiscal interest -- instability. families and businesses deeply worried about their jobs and mortgages will hear the chancellor's talk of safe havens that concludes he is either deeply complacent, or is in complete denial about what is going on in our country. these policy started kicking in well, well before this latest financial market instability,

confidence has collapsed. our economy has flatlined the nine months. and nine months growing slower than both the united states and the eurozone, and on the latest figures, the forecasts confirm to be downgraded yet again even before that downgrade, falling 46 billion pounds higher in the chancellor plan. mr. speaker, we do need a tough medium-term plan to get our deficit down. but it is -- the chancellor -- [shouting] the chancellor's reckless speeding the house will come to order and i will repeat what i've said before. if dems are shouting their heads off, and then expecting to be called, they are suffering from an element of self-delusion. mr. ed balls. >> mr. speaker, is the chancellor's reckless policy too far, to those that have ripped out the foundation of the house and left our economy deeply exposed to this global

hurricane. and yet in the statement, despite all the evidence, and with our stock market falling 10% more this week, does the chancellor still cling his policies are working. and we are a safe haven. despite evidence of the last two years, credit default swaps, despite the fact in the last week long-term interest rates have fallen in britain and in the united states over the last week, despite that he still claims that falling u.k. bond yields are not actually a sign of stagnant growth in our economy. does he not remember the japanese ministry of finance briefly took some confidence as low as 41 years in the early 1990s and at the beginning of what turned out to be a decade of no growth and stagnation? i have to say to the chancellor, however many times he says his plan is working, that doesn't make it true. however many times he claims he is restored confidence or delivered on deficit reduction,

that doesn't make it true either. we know he has spent the last four nights in hollywood but he just cannot write the scripts and watch it come to light. that is not how things work in the real world, mr. speaker, and if he won't take it from me, it's interesting, if he won't take it from me he should hear the words of paul krugman, the nobel prize winner who said britain's experiment in austerity is going really, really badly. fighting in fantasy. the wolf is at the door and osborne think it is the confidence very. mr. speaker, the chancellor finds the state of the british economy reissuing. we find it deeply worried. he rejects our call for action now, including a cat and mouse to plow in the gardens. we say this approach is deeply reckless. the eurozone is in crisis. america, the british economy is flat like a global markets is in

turmoil. the world desperately needs strong and united leadership. and here in britain we need our chancellor to get out of his complacent denial and get back to reality before it is too la late. >> chancellor of the exchequer. >> thank you, mr. speaker. i did see mickey mouse in california. he seems be riding the labor party's economic policy. let me start with the areas where we agree. we agreed that it is right for britain not to join the euro, and maybe the shadow chancellor change the official party of the labor party to that respect. on the contingency plan of the financial system, i'm very happy to offer the shadow chancellor a briefing from the tripartite authorities of what those contingency plans. obviously as he will understand, they have to remain confidential but as a say i'm very happy to give him that briefing.

on what he says about european countries have introduced their deficits, being forced to do so, i would ask him, who is supposed to be lending his european countries this money that he talks about in this imaginary world where they're not taking action to reduce their deficits? he voted against the decisions we have taken to increase the resources of the imf, no children and thinks there is some magical body out there, some investors who will lend money to these european countries that don't have credible deficit plans. it is completely nefarious as he put it. now let me talk about the u.s. he mentions the u.s.a. he called for a stand on this measure? arguing. i agree with the plan president obama's set out, george washington university. may be the leaders of the opposition doesn't know what's going on in america at the moment.

[laughter] actually, actually the president of the united states, the president of the united states have set out a deficit reduction plan that is at the same pace and of the same scale as the one that we are pursuing in britain. that is what the president has said as his offer, and the the opposition he has set forward of tax increases and spending reductions are the same as the spinning consolidation that we announced last year. they are based on some of the ideas put forward by the commission to go to the u.k. for inspiration for some of their ideas. now, he says there is a global economic crisis. he is right about that. we agree about that. but it is caused by an enormous debt overhang. that is what all fears, economist are saying at the moment. it's also right when he says the labor party need a tough deficit

reduction plan. i agree with him about that. where is this tough deficit reduction plan? we have just spent the last two and a half hours listening to labor mp get up and complain about spending cuts, complained about the deficit reduction plan, yes, they are all nodding their heads. where is the top deficit reduction plan that he promised? [shouting] mr. speaker, the shadow chancellor is now almost alone in the world in making the argument that he makes. he talks the international leadership. if you turn up at the g7, the imf, the g20, with his plan to borrow more, to increase our deficit, he would be laughed out of that meeting. he is completely irrelevant to any international debate. and i'm afraid he is living proof of why the public will never again trust the labor party with their money. [shouting]

>> sir andrew tyrie. >> does the chancellor agree the collapse of the eurozone is a warning to any government which flinches on dealing with a deficit? is why the chancellor isn't quite right to stick to the commitments that he made a year a go to put the country on course of greater stability? does he not also agree credibility is a long run economic policy but also depend on a fully developed strategy for improving the supply side of the economy? he talked a bit about that at the end of his statement. when he is intending to publish, to fully work of improvements. >> first of all, i completely agree with the treasury select committee says about the credibility of the deficit reduction plan, now disaster it would be in the current environment to weaken that plan. we would within hours i think find themselves sucked into the

global debt whirlpool that other countries are struggling to get out of at the moment. so i agree with him about that. i've also agree we need to do more to bring the supply side of our economy. this is hard work. it means taking on difficult tested interest. we've seen the argument in the last few days about planning controls where we're trying to make it easier to have economic development. there are plenty of groups who pop up and up those that. it is an example of some of the battles we have to have and to win. i confirm we will be producing the second phase of our plan for growth. is also at a time of the autumn forecast. >> mr. david miliband. >> mr. speaker, a be very grateful to mr. chancellor confirm private sector estimate privacy, which are 4.% downgrade over the next four years means it will be impossible to hit his fiscal target of turning the debt-to-gdp ratio down by the end of the parliament.

>> the independent estimate most recent made, was done by the imf this month. they made an assessment using lower great forecast, and they came to the conclusion that we would have both a fiscal mandates and our target for reducing debt. and they have made that clear and they're asking for reassessment. i can't help but note that if you given the leaders speech he had written, then the labor party in a much more credible place than it is today. >> malcolm bruce. >> as the world circles country after country, is it not an indication discovered it was right to come together with a robust strategy to bring our policy into balance? the labor party lacks credibility. if there's one area we can be sure this is done in a fair and equal way which puts the lower and middle income groups in the driving seat of recovery. they accelerate process of reducing, increasing the tax ratio and reducing taxes on

those people is the best way to do it. >> well, the honorable member is absolutely right. we are taking many, over a million low-paid people out of tax altogether come and that is implementing the policy of the liberal democrats put forward at the general election. i also agree with him, it's a vindication, not just of the economic decision but also the political decisions we took. i think you're reflective artifact we had a hung parliament, the first time since the 1970s. we formed a coalition government. i was a difficult decision for both parties involved. when you look at the political weakness in other countries, which is driving a lot of the market concerned about this countries, look at the political strength of the government in britain, i think that is attributed both political parties. you set aside their clinical differences and came together in a national interest. >> jeffrey robinson. >> thank you, mr. speaker. with the chancellor assist in the bewildering, that his plan

is working. please tell the house by how much this year, this financial year he will fall short of his financial tide of the apposite reduction speak with the important difference between a time when he was in a treasure and i'm in a treasure is we have an independent office for budget responsibility that makes those announcements. and it is not the chancellor that makes those announcements for the very simple reason, that by the end of the last government those treasury announcement were sewed discredited they were believed by absolutely no one. and one of the important decisions, early decisions we took to restore credibility and british public finances was the creation of an independent agency to make those announcements. [inaudible] if so, why? >> it is the case that in the

first two quarters of this year the u.k. has grown more strongly than a tiny bit however that is not a source of comfort for the world because we need a strong u.s. economy as well. and we want to help bring about the international framework which will enable that to happen. >> mr. speaker, isn't everything it took until the end of page five of his speech with chants of to even sadly mentioned the word growth? when i reflect upon the fact his own -- the region to the pages is a very important very important money into the low plan that was supposed to solve this but has actually left the english region stagnant lake growth over the last nine months? >> both he and i represent constituents in the northwest of england, the striking facts about the regional settlement agencies is that during that period regional disparities in our country grew. it didn't work in the way they

were supposed to work, and i think local enterprise partnerships, pinball businesses and a much more practical boundaries, will help deliver that local growth. but i have to say, if he thinks all the worlds problems at the moat are caused by the fabric here, i think he's exaggerating his case. >> mr. william cash. >> the chancellor will know that our trade balance is between 2002-2009, 2010 with the other 26 number states has gone up from minus 40 billion minus 53 billion in one year. does he not agree that even he would repudiate the idea of veto a fiscal unit with a hard-core euro with such and crippled trade deficit against? the coalition agreement according to the latest answer i got from the prime minister determines our relationship with the european union. desdoes he not agree, disagree h the deputy prime minister we must every negotiation, radical

renegotiation, and the repatriation of powers so we can achieve growth for all our -- shop-vacs but i think is in parliament and is, the national interest they should be suitably rationed at the chancellor of the exchequer. >> what i would say to my honorable friend is i'm afraid we'll have to agree to disagree on this. i think there monetary union leads you to more. it was one the reasons i was against joined the single currency. however, i think it is not in our interest allow that to happen more in the eurozone. because it is in our absolute national economic interests the eurozone is more stable, and it's clear to me that means they need a more fiscal powers to reduce their instability and that currency zone. that means of course that britain's fight hard to make sure its interests are represented, that we are not part of this fiscal integration,

and important decisions, for example, a financial services continue to be taken at the level of 27 but i have to say he talks about treaty changes and so on. i think the prospect of a major treaty changes to bring about this eurozone fiscal, is not imminent but i imagine there'll be a lively debate if and when it comes about. >> the number of people who claim jobseeker's allowance in my constituents have gone up massively, hard-working people with good work records unable to find jobs. why will the chancellor not look seriously at areas like mine, do more, take measure to money in the hands of ordinary people such as reducing the vat? >> we have announced an enterprise for sheffield, and we'll have further announcements to make in the coming weeks. what i would say, evidence of the last 10 years is that

actually in important regions of our country, and i have in my mind the statistics of the west midlands from her constituency, private sector employment actually fell over the decade before the financial crash. i mean, that to me shows the model of growth based on the biggest housing of any country with the possible exception of our them with the most overleveraged things, the highest budget deficit ultimately lead to ruin. and we need a different model of growth where we go the private sector in areas like sheffield, and get real lasting jobs rather than assuming we can just use government spending. >> mr. john redwood. >> someone who believes we do need to get deficit down and do more to assist growth, to help them. will the chancellor look at the dreadful losses of rbs and they get on capital that is on their share? and see what more can be done to manage that colossal axis in the interest of economic growth and attacks from? >> well of course we continue to

monitor the situation rbs and, indeed, all the british banks very closely. there is of course a concern in the financial markets about the capless vision and liquidity provisions of banks in many countries. i have to say this has not been expressed at the moment about the u.k. we passed a stress test will. we have a strong liquidity provision in place for the banks, including rbs. and i think there for the markets can have confidence in british banks. >> but isn't it clear that the right honorable gentleman whole strategy is failing? since it is now almost entirely dependent on achieving growth? and since the economy has been flat nine for nine months, export markets are stymied. could easily have are been tried with little or no effect. interest rates already flat on the ground. what exactly does he expect the growth to come from to get out

of the long stagnation? >> as i said the british economy is turning. the assessment of the bank of england and the office of budget responsibility that it will continue to grow. the growth in the last six months has been stronger than the united states of america. as i pointed out. and half a million jobs have been created in the private sector in the last year. last 12 months. so that is all good news. and i have to -- the question, where does he expect the money to come from for additional government borrowing? who in the world which into a country that abandoned its deficit reduction plan at a time like this? particularly a country like britain which and fortune has the highest budget deficit and the g20? >> we are all still hearing that banks are not meeting sufficient funds available to small and medium-sized private enterprises to their constituency.

upon which the guns strategy has been based to make up the deficit of the loss of jobs in the public sectors as result of the strategy being pursued. a downward estimate in growth. what we do business secretary mean when he said we would have to find more imaginative ways of getting the money through? can take find what he meant by that? does he agree with it? >> the challenge that we face in many developed countries face is this, banks are shrinking their balance sheets. they got too big. they let too much money. they are also courting capital because of the current market. what we're trying to do is ensure that in the process, bending small and medium-size businesses is protected and, indeed, increase. we signed an agreement with the banks the beginning of the year, and emergency agreement to see an increase of 15% and small business lending. we will publish the figures

tomorrow, so i can't get them today. but the banks themselves have already indicated that they are on track to meet a 15% increase in small business lending over this year, and i'm confident the figures tomorrow will show that that is the case. >> in june 2010, the deficit reduction plan as adding 8 billion tax rises the year, and 52 billion of cuts from 1415 every year on top of the 73 billion or so fiscal consolidation that labor had. it also forecast growth this year on 2.3, 2.8, 2.9, and two by 7%. those figures -- what with the chancellor do? we increase taxes? quickly cut public spending from then? or did he mean by adjusting our expectations accordingly that he would change his deficit reduction targets?

>> we are not proposing for a second to change our deficit reduction target. and, of course, the deficit reduction targets is a structural budget deficit target. and was deliberately set as such. i have to say, the reason we set out those plans in the emergency budget, the reason we went on beyond the mantra provided by the last government, not that they're written in the proposals to do that, but the reason we went beyond that was because on the day we came into office our country's credit rating, know what those plans were, was on a negative outlook or downgrade. our market interest rates would track income and would the governor, the bank again, the imf, the cbi think the government's budget, the previous budget deficit plan was not credible. if we stuck with that plan, even if we filled in the blank space, i believe we would now be part of the whirlwind of suffering debt crisis, the sovereign debt crisis which is engulfing other

countries. >> before there's any attempt to rewrite history, the chancellor just confirm again that until last year's emergency budgets and spending plans, this country's aaa rating was on negative outlook and was only restored to stable through them measures he took last year? the real lesson of the united states, of any country that goes off its fiscal deficit reduction plan can suffer a downgrade with all the damage to jobs and prosperity. >> well, my honorable friend is absolutely right. last year in january last year, the largest bond investor in the world was sent this. they said that u.k. is resting on a bed of nitroglycerin. and today i could read out a whole string of comments from market participants in the u.k. has been a safe haven in the sovereign debt crisis because of the disease we took. and, of course, can't impose, the rating agency which is just

downgraded the u.s., to the u.k. off negative outlook, reaffirmed our aaa credit rating. and the practical consequences of this is much lower interest rates. if we pursue the policy proposed a more spending, more debt, immediate response will be higher interest rates which would kill off any recovery. and that is what it is really economic madness. >> thank you, mr. speaker. given worsening u.k. growth, with a chance of advocate further easing? if he won't say on that, does he believe that there's no chance of rapidly rising hurting our export? >> well, these are both matters property for the bank of england. and for government to comment if he chooses to comment on the value, and in terms of positive easing, the arrangements which were as agreed by the previous government, which i continued, remain in place. if the budgetary policy committee makes a search request, then, of course, we'll

seriously consider it but we've had no such request. >> sarah newton. >> yesterday in my facts reported the low-cost the barn in the u.k. on average for five years to fix of mortgages. and a 1400 pounds cheaper than two years ago. this is very welcome news for hard-working but squeezing constituents in my constituency. i can the chancellor confirmed that he will continue his policies that will have a low interest rate so important for families and businesses across the country? >> i absolutely i will. and i think interest rates are often the missing parts of the debate in this chamber. and it is economically impossible for the opposition have more spending, more debt, and low interest rates. those things don't square in the current global economic environment. so the automatic response, the immediate response to the market and quite possibly for the monetary policy committee would be an increase in interest rates

if the party opposite were to abandon the fiscal plans that we have put forward. we would have interest rates that would kill off in recover recovered. >> without preamble so we can maximize the number of contributors. >> mr. speaker, the frightening ability of the world economy has arisen since and as a result of the abandonment of postwar arrangements designed in bretton woods and a localization and globalization of finance capital. half of that original was each of its country had its own currency. isn't that sensible to move back in that direction by establishing national currencies within the eurozone? >> well, we did abandoned the bretton woods arrangement the early 1970s. it's been a while since we've been operating under the international arrangements. i would make two observations.

he makes a serious point about the eurozone. i think it would be disastrous for britain's economy if the eurozone was to break a. i think would also be disaster for the economy of the eurozone, it would leap immediately to a crisis in many european countries. and that's why in our interest, in the eurozone works. some of us question what it was right thing to go ahead with 15 years ago. we said we didn't want britain to be a part of the. as i've said before i told you so is not an economic policy for today. but when i think he is right is that we do need better international arrangements for monitoring and dealing with the global rebalances but the fact that huge credits in countries like china and big data countries like the u.k. and united states. i'm afraid the progress of the g20 and imf on this is painstakingly slow. some of the meetings are not even able to agree on definitions. i hope if there is a silver lining to the black clouds of

the moment, the financial market crisis, we will see in the autumn meetings much greater progress that i think if one accepts needs to happen. >> thank you, mr. speaker. i congratulate the chancellor with the death of reduction program. but can he tell us, what has he made about the rising price in gold? how much better off the u.k. economy would be if the last comment had sold off gold? >> well, in anticipation that the question might come up, as it often does, treasury event, the price of gold has hit a record high as people would've seen of $1800 year it was $300 when the shadow chancellor sold our gold stock. and as result of this country has lost 12 billion pounds. >> thank you, mr. speaker. the chancellor, the house will know the chancellor does not mention the fact that we are

approaching 5% inflation. he did not mention the fact that we're 46 billion over his borrowing. he did not mention the fact that consumer confidence is falling, or that the business confidence is falling. he did mention his growth plan but there is no growth. when we accept the parallel that the sharper the cuts, the deeper the cuts, the less growth there will be? >> well, the question i would ask him is who does he expect in the world to be lending money to countries with very high budget deficits that don't have credible deficit reduction plans? what group of people would put the money on the line? that's precisely the problem we've got at the moment in the global financial markets. he asked about inflation. the governor of the bank of finland said yesterday in his press conference expected inflation to hit 5% this year. but i would say another silver lining to the dark cloud, the commodity prices have fallen in the last few weeks. the oil price has fallen somewhat off its high.

one of the biggest challenges i think all developed countries, and, indeed, developing countries have faced in the last year or so has been a very big increase in the oil prices. >> mr. speaker, can i welcome the chancellor's comments about the need to cut deficits? can i also remind him that however the market is important for exports? and the growth required and sellers to the conference to transact. will he therefore while -- remember the need for demand and still demand british economy for households and businesses is very important? and will he not lose sight? >> well, of course i agree we need to make it i think you meant partly comes from confidence. and confidence comes from economic stability. and if we think of the difference between a statement that i've been able to make debate in the house of commons and the kind of emergency statements that emergency budget

cuts, that many finance ministers have had to announce the last two weeks, then i think you have in a nutshell the reason why we did the right decisions last year to get ahead of the curve and why so many other countries are now trying to catch up. >> does the chancellor say how exactly plan to control his team at when they're already offices, houses and shops which are standing empty in my constituency? >> of course we need to fill vacant properties but we also need to about new development. and i think all of us want to protect areas of outstanding natural beauty in our country. i had against interested in the greenbelt. but, frankly, the planning decisions are so lengthy in this country and so bureaucratic and so complex that almost every commission in the last decade to look at the british economy has identified plan as an obstacle to further economic development. and i think we need to get, simple by those plans and control. so yes, we protect the countryside but we also get

decisions in reasonable time that allow development to take place. so that's what we've introduce the presumption of sustainable development into the planning system. >> jeffrey brown. >> how can the chancellor -- given there are four and half million employed to justify people to each of them, or a court of them took an extra person, don't have a huge dent on the unemployment rate. >> of course small businesses are the engine of job creation in our country. and as i say, 500,000 new jobs have been created in the private sector over the last year. that is the second highest rate of job creation in the g7. in terms of specifically helping small businesses, we avoid the increase of small business taxation which labor party put in last budget, he shakes his head. he did know but that was an increase come in small business taxation. we cut it. and it also introduced support for the exports come exports a

small businesses, a central part of the strategies developed by stephen green, to help small businesses export. and, of course, i prefer to the agreements with banks which are now starting to see an increase in lending to businesses that sent it wasn't happening last year. >> chris williams and. >> the frontline economy and inflation set at 5%. the stagflation looms large. so can the chancellor to help the house why he is so wedded to crack tea party economics when he is plenty failing the country? >> sounds like the shadow chancellor wrote that question. [laughter] let me, let me repeat what i have said early. actually, the proposal put forth in the speech of george washington is for deficit reduction in the united states of the same pace and at the same

scale as the one we are pursuing and britain. and that is because in america, they have to do with the budget deficit. >> thank you, mr. speaker. europe is making increasing demands on a pension parks, and iverson made demands on our vat but is it not time had a debate on how much? he said economic would be disastrous if it broke up. but surely they should be a debate. 75,000 have signed a petition but surely this ought to be a debate. >> we do debate the european budget in this parliament, and quite lively debate. we are fighting hard to freeze in real terms, freeze the european budget. not just for next year but for the coming new financial perspective from 2014. and we have enlisted a number of allies i think across europe now. there is an understanding with very tough decisions at home of

public expenditure at almost every european, in every european member state. we need to give a control on the european budget. >> the momentum for growth in u.k. economy has clearly not run. i'm glad he's going to make announcement about growth in the autumn. as the plans for those we take the imf you that if there is a prospect of a lengthy period of weak growth ahead, should doing to consider temporary tax cuts? >> well, of course we bear in mind advice from the i f. and others. but they make it clear that that is not their scent of you at the moment. they were very -- they asked themselves, the very specific questions. and they say this but the weakness in growth and rising inflation raises the question whether it is time to adjust macroeconomic policies. the answer is no. strong fiscal consolidation is underway and remains a central. imf article for report published on the first of august.

>> recently the u.k. has been highest per capital exporter in the world. vital to future growth. what action is a government taking to ensure we can continue to compete locally for services on a level playing field, particularly in the european union? >> the first thing i would say is wow it's not all the economic data has been encouraging recently, actually the services index for the united kingdom and in the last couple of weeks was actually one of the, i think the strongest in europe. and gives us some cause for optimism in that sector. i agree with him that we want to maintain our competitiveness. and we want to export more to you, i think the agenda should be much more but complete a single market, implementing things like the services which just sat on the too difficult to handle shelf for far too long. this is the agenda we need to get the european union focused on.

[inaudible] factory of divided in my constituency. they like many of the construction projects companies up and down the country are very, very worried about the prospects for immediate economic growth. particularly in the light of public procurement cuts. what i would like to ask the chancellor is, what is he going to do to stimulate demand and growth? what personas are you going to do in the very near future? so that we can create and safeguard jobs in the private sector. [inaudible] >> the first thing i would say is, in the spending review we actually sat capital budgets which were higher than the ones set out by my predecessor, the chancellor of the exchequer of the last labour government. government. cicely capital spending budgets are higher than they would've been under the plan that she stood in the last election. when it comes to getting the

construction section moving, and that is precisely what we are attacking issues like the planning delays that have been difficult it is why we made a number of tax changes in the budget to help the construction sector. the construction index was also positive in the last couple of weeks. and i would just say to her, it is not possible when you're running behind such a definite energy 20 to the banning of fiscal consolidation plans, to seek out there in the work from money to borrow. that would lead higher interest rates, markedly higher interest rates but look at interest rates in spain and italy at the moment. we know the higher interest rates to particular damage to the construction sector. >> tobias ellwood. >> allowed us to keep our aaa rating, unlike some other countries like the united states. and possibly now france. of the chancellor say what would happen if france did lose its

aaa rating in regards to e.u. stability funds? and the ability for eurozone bail outs to continue in the future? >> my honorable friends asked a good question, which has been asked in the markets at the moment i have to say one of the causes of instability in the last couple of weeks has been loose comments from finance ministers on issues such as debt. so i will take the fifth and not comment. >> jeremy corbin. >> does the united states have any concerns about the power of the credit rating agency that is him and at a whim can cause disasters on smaller a comments to increase interest rates, lead to public spending cuts and lead to devastation for many poor people's lives? does not think it is time to report under some kind of accountable control? >> well, it might surprise the honorable gentleman to say,

ashley i agree with at least part of what you say. we have concerns about the way the credit rating agencies have operated, and that's why we've been heart of european discussions against european rules on credit rating agencies in place. and i think they are appropriate. where i disagree with him is to blame all of what's happening on credit rating agencies the credit rating agencies, however imperfect are trying to give market investors some idea of the credit worthiness of countries and india companies. and the truth is this. did not lead to spending cuts. the reason we have had to take spending cuts is this country is currently spending close to 50% of gdp on public expenditure. that is far higher than the historic average under conservative and labour governments, and that is why we are having to act. we are doing it because with a record budget deficit, the highest in our peacetime history. and highest energy 20.

>> mark spencer. >> thank you, mr. speaker. the chancellor made reference to murder and and an agreement with the banks. but is he aware that these banks are double counting their lending by forcing businesses to convert overdraft into long-term growth? i have a business in macon stages want to expand, who want to take a more staff, and they cannot do this because not only for banks nothing helpful, they are being obstructive. >> i'm very happy to look at the specific constituency case that he mentions, 11 look into the details of that. and get back to them with an answer. [inaudible] forecasting even higher unemployment and more jobs will be lost. the government wants policies. they are putting new work

obligations. [inaudible] not all of them will. and, therefore, really wrong that the people who have been doing all they can to find work, and so helpless, the loss of their benefits. can the chancellor speak to the effect of this? these obligations should be lifted? >> first of all, if i might correct the honorable lady. the obr are not forecasting rising unemployment. they aren't forecasting falling. i reminder have the money private sector jobs have been great over the last year. but let me give directly with your point about social security. the welfare system is a policy trap that is discouraging people from working.

and people on benefits face incredibly high marginal tax rates, if they seek work. that is why my secretary, my right honorable friend in work and pension has my full support seeking major reform of the welfare system so that we incentivize people into work. and i think it's one of the most important reforms this country is undertaking. >> given our country's debt, it's reassuring the price of the government borrowing has fallen to the lowest level since the last liberal government. how much more expensive, how much more expensive would government borrowing mean if our interest rates have gone the same way as those in other parts of your? >> it would have been of course ruinous. not just ruin is for individuals but also ruined his for the government. one of the largest governments things i've inherited unfortunately is debt interest. we are raising taxes in order to pay our international credit.

it is now in the forecast to rise sadly over the parliament because as we reduce the deficit and that's what it so important to try to get debt falling by the end of the parliament. so it would, of course any reduction in our guild is good for the government. and it saves us money as well. >> can the chancellor explain why he -- [inaudible] >> the office of the budget responsibly makes its independent fiscal forecasts, which is one of the great, i think one of the great policy developments of this government that's been created by an independent body. they would be making its autumn forecast in the usual way. >> the chancellor rightly mentions the issue about the doha round and about trade. trade is something that

permeates every single aspect of governments growth agenda. i just wonder whether the chance would like to comment on whether he believes that the g20 really appreciates how crucially important releasing trade and ensuring greater free trade at this particular moment in the global economic crisis? >> well, i think the honorable friend is right. i think the significance of this is it is therefore the countries of the world to seize today this month, next month, if you're looking around the world for something, in very short order, increased global demand, it is sitting there in the doha round i hope to make progress in the g20. it will be the leading aspect of making progress in the g20. we have some good i -- good allies. there are both obstacles. >> mr. speaker, is it to we have

been used, why are we seeing significant growth in the value of families? >> as i say, make it a very simple policy not to comment as previous chances have decided also to do on the value of sterling. i don't propose to break that commitment today. >> in terms of the steamers to the british economy, what effect does a -- will be the effect increase borrowing which we didn't have an impact on increase mortgage rates, demented people up and down the country? what would be the aggregate impact, say, over vat? >> of course my honorable friend is right that there's a very significant monetary stimulus in place with these very low market interest rates. and, of course, the official rate. and both of those would go up,

almost certainly in the case of the market come and probably indicates of the monetary policy. and that is why this talk of more fiscal standards, alone in the world. this debate is really happening almost alone in the labour party of the united kingdom. it's very difficult to find an opposition in where in europe that is arguing for less than reduction, coming off the published plans of government. and as i say, the shadow chancellor ashley turned out that one of these meetings and put forward his proposal i think you'd be laughed out of the meeting. [inaudible] join me in saying our best wishes to the officers injured last evening. of his statement come and ask him, with 11% coming off the stock market, the british values, this is not an impact in many, many pensioners. what's he going to do about it?

>> well of course the stock market falls to affect pension investments, and, indeed, other equity investments that people have. our stock market has fallen, not as much of some, but nevertheless it has fallen. he says why is that. it's because of the global lack of confidence in governments abilities to deal with their deficits. and the reason i shall we've not seen the turbulence in our bond market is precisely because we have got at least a credible deficit reduction plan. and i might know, mr. speaker, it's been over an hour since i've been answering questions. and our almost since the shadow chancellor said we needed and that labour party a plan. has one single labour mp got up and proposed one single component of deficit reduction plan. know, they have not. >> the fact that over the last

year we have seen the private sector create four times more jobs than has been lost in the public sector does my right of what the friend agree with me, is it a better approach to job creation and the overreliance on the public sector? >> my on the front is absolutely. first of all i should take the opportunity which i didn't take on responses last question. to praise the work of the police who have shown outstanding bravery in the last few days. and my thoughts go out to the member to the injured officers. he's right, that surely we have learned something from the last decade, which is relying on and sustainable housing great, unsustainable government spending, unsustainable bank lending is not a model of growth that this country can pursue. again we got to get office

countries addiction to debt. and an addiction to debt not just in government but in banks and in household. that is what we're doing. it is a difficult adjustment that many western economies are having to go through. unfortunate for us, we were the most enthusiastic participants. it is a typical adjustment here in the u.k. >> does he agree with recommendations that he said -- [inaudible] >> we are in active discussions as he well knows with all the parties in wales, and with the welsh government. discussing what further powers might be default to the welsh assembly, including fiscal powers which might have a role in economic development. i don't want to preempt that debate, but the fact that we are

compared to engage in shows we're doing this this in good faith. >> mr. neal carmichael. >> given the credibility the coalition government has worked with deficit reduction program, and also low interest rates, does he think that kind of message would be appropriate to encourage the same competition making swift and strong across the european eurozone? >> i think we have got ahead of the curve. and as a say i'm not going to -- the limit having to come to the apartment and announce emergency budget cuts because they didn't get ahead of the curve. i think it is important for the euro zone countries and, indeed, all country to fiscal credibility. there are many good examples in the eurozone of countries that have done that, and we are part of that act. [inaudible]

>> can i say to the chance of people to my constituency, mass unemployment -- can ask the chance to win since to do to in my constituency? >> i would make this observati observation, that its own every labour government in history that has -- [shouting] >> isn't it the case the better way to the hard-pressed families, job seekers, and pensioners mentioned by all members of the house that are getting on with the business of trying to make savings their own budget, their families income, that they need to see a stable economy in order to make sure that they are eventually maintain? >> well, my honorable friend is right. what we are able to provide is

that stability in the government debt market which is lacking sadly as other government debt markets. but i think all of us now need to rise to the challenge of removing the obstacles to growth. elamin confronting some vested interest, even potentially some trade unions. but is actually essential that this country wakes up to the competitive pressures of the modern will, to competitive pressures to countries like china, brazil and others present to us. and get that private sector growing in a way that will create sustainable jobs that were so lacking in the last 10 years. >> lester government borrowing pay 25 pounds than lower anticipated. can you give us an explanation, chancellor? >> as i already explained, we have an independent office -- i was pretty tempted to say that the and was the previous chancellor knew that he didn't want to have to downgrade his foreign forecast before the

general election so recorded kitchen sink the borrowing of the forecast a year before to make sure he was able to show a reduction just before the general election. .. >> care are a lot of american references at the moment in this debate. the point i would say to my hon. friend is some of the asset sales that we have proposed and undertaken, we have used the

receipts of those to invest in new infrastructure or a particular industry. of course, we have to do this on a case by case basis. they have set out how we would use some of those for future investments. >> how is the comeback with his claim that britain is a stiff economic came in? >> i reconcile let by the bank of england. -- >> they appointed this. in fact, i suspect the chancellor made the appointment. of england said is the u.k. has done what it can in terms of

putting major conditions in place to assure the rebalancing and recovery. we have incredible fiscal plan which many countries do not come in and we do. that's what he said yesterday. >> james? >> thank you mr. speaker. he adopted to the debt funded cut that would have an impact upon the u.k. aaa credit rating. >> i think a multi-billion dollar increase in our deficit would undermine market confidence in the u.k., would lead to an immediate, probably within minutes, and interest rates the what mean higher effective mortgage rates for businesses and for families picks, and it would be one of the things that would take off the recovery. >> i was pleased to visit the energy services in my constituency tuesday. a company that invested 20 billion pounds to meet transition pieces for the offshore when the industry.

they are frustrated and the disadvantage they have that germany and other european countries have by its own. with the chancellor do something to help the british industry in sure the wind farm by british help hundreds of jobs and get the economy moving again? >> we are seeking to develop a domestic green energy business of which it sounds as if the company that he speaks to is a good example. i hope they by british products like wind turbines because they are the best in the world come and to help that company make the best products in the world we have to trade competitive business components because the competition from the likes of germany is so strong. and i would also say that some of the decisions that have been taken on our energy policy has provided some stability that allows investment in that renewable energy technology.

>> and drew curious mix before mr. speaker. that's one of the regions the last ten years lost private sector jobs on the public sector. our way back to the manufacturing -- can i ask the chancellor to look very closely at things like the carbon for pricing and putting the wings and perhaps more could he look very seriously at [inaudible] by next year? demint first of all i completely agree with him about the need to make progress on the planning reforms for the reasons that he said. that does mean in difficult positions and taking on pressure groups but i think that is absolutely right and the planning of reforms we make deutsch into account the need to preserve our natural environment the bridge toll is something i'm very familiar with because of

the member who is a tireless campaign on this and the treasury is conducting an economic study to the effects of the bridge tolls, and there will be reporting at some point in this parliament. >> dr. blackmon? >> i congratulate the chancellor for recognizing there's a link between what happened in the global economy and the u.k. economy. in the light of this can he say what it's going to take to ensure the problems that the u.s. economy and the eurozone do not need to further downward pressure on u.k. economic growth? >> chancellor? >> unfortunately i can't, to the to make the u.k. not affordable to those events elsewhere in the world but of course there's a global connection to it i would draw this distinction between what i am saying and what my predecessor, the previous prime minister says.

i'm not saying britain has been blameless in the way it's handled its economy in the last decade or so. [laughter] we were the most enthusiastic participant of a global debt and as a result of the more difficult adjustments. >> roger williams. >> recent reports have shown that the economy has the capacity to grow and grow quickly if it has the right conditions. will the chancellor confirmed that in the state on the growth -- plan for growth those conditions will be met and the economy can play its part in approaching the national finances? >> well, the first, but i would say to my friend, is we recognize the specific need for the economy. it's one of the specific strands in the second phase of the growth review, and i think one of the key -- i know something of the constituencies -- one of

the absolute keys to the rural economic development is the infrastructure world and which i think opens up all sorts of business opportunities in what has previously been regarded as a remote places, and i think that is why we are right to be investing in a rural broadband across the u.k.. >> dr. alan white head. >> but we took the opportunity first to repudiate the office of budget responsibility so growth with 46 billion additional borrowing requirements, and what additional cuts is he planning in order to avoid that outcome? >> i think the honorable gentleman says two things, one is the office of budget responsibility is independent. i have to say if it's going to work as a permanent institution, it is going to need the support of the offical opposition, and i hope that's forthcoming not just in the latter support but also in the spirit, which is there is

not a constant demand for the chancellor today to provide their own fiscal forecast. so there will be the first point i would make. the second point i would make to the honorable gentleman is as i say, we have put in place this credible deficit-reduction plan. we have heard from the chancellor of the beginning of the session that labor needed an incredible deficit reduction plan as well. not a single member including him has proposed a single pound of spending cuts in this session. and i think until labor party gets that credible plan that will not really be able to pass a sensible debate. >> george freeman. >> as my honorable friend seen the data that none of the showings of the private sector four times more than the sector has lost but also britain is now second in the g20 league of net job creation; doesn't that show

that the strategy is working and that the shadow job growth is out of touch and hasn't learned the government role you can't borrow your way out of a debt crisis? >> will, he has a history and the golden rules and they don't usually turn out to work. but my honorable friend is right. my honorable friend is right that we are seeing job creation. we are not removed the complacent by that. we are working extremely hard seeking to improve the competitiveness and making sure it's able to export and invest. that is the model of growth this country has to pursue. >> thank you mr. speaker. the last nine months have been planned to present in the proceedings in the nine months it was 2.1%. many have been about the growth and economic and regeneration. if we continue to see growth to

this nature either flat line will the chancellor look again and will he be looking at policy that stimulates growth? >> wealthy only thing i've heard from the party opposite which by the we presided over the deepest recession since the 1930's -- the only thing knife heard is a complaint every time any proposal was put forward to cut the public expenditure. we just heard that earlier today. i have not heard any growth policy as she puts it from the labor party. i just heard opportunistic opposition to everything this government is doing that a credible deficit-reduction plan. the chancellor then is going to >> now that the pixar finalize comment tell us more about who was selected started with the democrats' tax >> he picked three numbers of the leadership

circle. jim clyburn and the only african-american on the panel was chosen. he has done across this caucus. no. 5 member. he is the only hispanic is on this committee.

and none of these are particularly surprising. whether any unexpected ones there? >> i think she will be the only woman on the panel. she will be the only one man. she will be the pick. she has been fiercely critical. she is respected. it was interested to see her pick. john kerry has a natural

stature. he has not been a leading figure. this is an interesting paper to see him on there. it they have been either involved in the gain of six negotiations are some of the other. max baucus has not been offering a huge plan of his own. none of the democrats really would look at them and say that to someone who will be a rogue. i think these are all people who are entrusted with in the democratic caucus to negotiate.

>> let's look at patty murray's partnership. >> he notably oppose the t.a.r.p. rescue package. he is supported by the president. can paysomeone that associated with the tea party. democrats are nervous. they do not see them as anyone with a real history of compromising.

they are pretty much standard republicans. they have been a little more moderate over the years. he became more conservative to win the conservative shift. -- conservatorship. tax reform will be the key to this whole question of whether they can get a deal. >> relative newcomers are there like that to m -- pat toomey. >> you do not see tough races being picked by other sites. is retiring.

rob portman is an interesting paper. he has fostered ties on both sides of the aisle. he is someone in my be a potential pick for vice president. he was under george bush for a few years. pat toomey was the former president for the club for growth. he had a little bit of a break. he has disagreed with the ones for things like ethanol.

some of these things are indefensible. there is some sense that maybe you can get some legal room on taxes. this is what they have to all decide, this group of 12. they have to decide early on, do they go for a really big package of some part? do they tried to get to the figure that is the bare minimum of what they're supposed to produce. there are cuts to things like agricultural programs.

>> i will wrap it up with a few quick questions about whether these meetings will be opened or closed. >> we do notgo and aog the andle.com either yet. we think it'll probably be fairly soon. there have been calls by leaders on both parties to do things in the open. my guess is that there'll probably be a combination of meetings. to a large extent, stuff happens.

all of these people to some degree are close to the leaders themselves. to get a real deal, you have to pass through both chambers. that means ultimately, leaders will be involved. to some degree, this will happen in public. some of it is public. a lot of the private. >> reporting on the deficit reduction committee. you can follow his work on line. thank you for that. >> in a few moments, mitt romney speaks to go workers at the iowa state fair. after that, president obama on the economy, it jobs, and politics in washington.

later, david cameron speaks to parliament. >> the u.s. commission on civil rights looks at the eminent domain. on c-span, but will be live at 10:00 eastern with how the federal deficit affects national security. panelists include stephen hadley. >> every waking, american history television highlights the 150th anniversary of the civil war comment specifically the draft riots of 1853. >> he confused the two things

and said you were going to go to war. you're going to go to the battlefront to die. an emancipated blacks label come and take your job. >> the new york historical society held a subject. the civil war, every weekend on c-span3. >> c-span is covering the candidates at the iowa state fair. after his speech, he was asked about the future of social security and medicare.

good to be here. >> good morning, everyone and welcome to the des moines register soapbox. i'm carol hunter, the politics editor and we are glad to welcome our first soapboxes the speaker of the affair. it is and mitt romney, a former governor of massachusetts. [applause] mr. romney is speak -- seeking the republican nomination for a presidency. let's give him in iowa or welcome. [applause] >> thank you, carole. thank you for the work of the desk moines register, one of the grape pickers in america the kids our democracy free and open. i appreciate the fre press and the work you do. it is good to have so many friends here today. what a great day. this is fabulous. last and i was here four years

ago, i will speak louder -- does that work better? there is brian kennedy. it looks like he stackedhe crowd with a couple of old friends. i appreciate your help. this is a challenging time. i wish i could start offith terrific news about how the country is doing and what bright prospects people fill in their hearts but right now, people are concerned about the country and recognize that america is in crisis. that is because we have 25 million people out of work or have stopped looking for work or are in jobs will be need their skills. with kids coming out of college at cannot findobs. we have people wonder if they cod stay on the family farm. we have people wonder it manufacturing will lead our country and go elsewhere. i was not only a state that lead the naon - iowa is a leading state in manufacturing. this is an extraordinary state with a diverse economy.

iowa is very better as the nation as a whole but the nation is struggling. part of that reason is we are led by a man who is a fine fellow but is out as a bridge the out of his death and does not understand how the economy works. [applause] i happen to believe that if you want to create jobs, it helps to have had a job. [laughter] i have spent my life and the private sector. in my career, i have been doing what you have been doing which is trying to make ends meet. my business help me start a company and i worked to try to manage enterprise is to make them better if i could. sometimes i was successful and sometimes i was not by learned the lessons of a free economy and i believe it is essential in washington if we are going to turn around the economy to have someone who knows how the economy works and has spent time in the real economy and not someone who's so professional

experience was being a politician. let's send some citizens to washington in addition to some politicians. [applause] i happen to think that the reason that this recession was deeper than it could have been and recovery is more tepid than it should have been is because the president just doesn't understand that his policies did the exact opposite of what the nation needed. he said he wants to create jobs and create the conditions that will let employers add jobs. did promising to raise taxes help create jobs? no. did obama care convince any small business to hire more people? no. if you are an energy-intensive business, did capt. trade and higher energy costs cause anybody to add more jobs? no. did doddfrank, the financial

regulatory reform, cause banks to give out more loans? no. on every dimension you can think of with this president, the actions he took made it harder proctor for north to build businesses, for banks to loan money, for big binesses to invest in capital and people. as a result, the american people are still suffering and that is why i predict that in november of 2012, president obama will not carry the state of iowa. [applause] i happen to believe after a lifetime of working in the private sector and some service and the governmental sector for only four years, i liked my experience as a governor. it was terrific but i did not in help politics. i am a business man and a private citizen for diar fo my business experience that there are a number of things that economy has to do if it is

going to perform better than the other nations around it. it should allow americans to have a standard of living that leads the world. you have to have tax rates that are comparable with competing nations. you have to have regulation and bureaucracy which is streamlined and modern and which encourages the private sector as opposed to burdening it. you have to have trade policies that work for us not just for the other guys. you have to have energy policies to get america free of our dependence on foreign oil. you after emerald law. -- you must have rule of law. when the president says we will bail out the automaks, you wonder if we have the rule of law. when they say you don't -- you can't have a boeing plant in south carina, you don't have

rules law. we are a capitalist nation. that does not mean capital of a physical nature but capital of a human nature. we have to a great schools, universities, and immigration policies that bring in the best and brightest. you have to have a government that does not consistently spend more money than it takes in. you have to balance your budget. [applause] over these last several months, we have watched people in washington debate about what we should do about the debt in this country. there were a number of people on the other side of the aisle who consistently pleaded to raise taxes. the people on our side of the aisle said absolutely not. we don't want to take more money out of people's pockets.

we know if government takes money out of people's pockets, it will not help the economy. government is already too big. during the days of john f. kennedy, government all levels comprised about 1/4 of our economy, 27%. government today comprises about 37% of the economy. we are inching closer and closer to a nation that no longer has free enterprise. we insisted that we cut federal spending and cap federal spending and that we have a balanced budget amendment and that is e right course for america if we are going to reign in the excessive growth of government. [applause] a don't know why the president is as misguided and in managing our economy as he is. sometimes i wonder whether he takes his political inspiration

from the social democrats of europe. i don't think europe is working. i don't think europe will work here. can happen to believe that we got it right and they got it wrong. i believe in freedom and opportunity american-style. [applause] i believe in capitalism and free enterprise. i believe in the constitution it was framed by the founders. by the way, i like all the amendments, not just a few of them. those who served in state government are particularly fond of the 10th amendment. --t says those powers not specifically granted to the federal government are to be reserved by the states and the people. when the president imposes obama care on the entire nation,e not only puts in place bad policy or an entitlement we can afford, he travels on the principles of the 10th amendment

to the constitution and that is why he will be -- it will be repealed on day one of my administration if i am lucky enough to be president. [applause] let me tell you one more thing -- i believe in the american people. many peoplehese days are cynical and skeptical. i love the country because of the people of this country. i have had the chance to go across the country. i have met people across iowa. we visited a lot of counties last time. we made a lot of friends. this is a fundamentally patriotic nation. we love america. it is not just for our temple hills, we love america because of the values that this nation has promoted around the world and preserved for ourselves, our desty -- our descendants, and our friends around the world. we show that love for america when the national anthem is being played by placing her hand over her heart. that tradition began in the days fdr.

he asked to put our hand over our heart in recognition of the blood that were shed by heroes proved in liberating strike. --s trife. because of the love of this country, i am convinced that despite our challenges, $14 trillion in debt, $62 trillion in unfunded promises by government, jihadists that want to kill us and russia who is resurgent, china that is now an assertive grand power, we face real challenges in the world. i am convinced that the patriotism of the american people if combined with leaders that will actually tell the truth and live with integrity and to know how to lead america back to greatness, that we will rise to the occasion overcome those challenges and remain as we have alwa been, the greatest nation on earth and the hope of the earth. thank you so much.

thank you. [applause] thank you] thank you, guys. i will take a couple of questions. >> do y support the cells security tax on rich people? do you support stretching the cial security payroll tax for rich people for them to pay their fair share into the trust fund? >> it has become a very popular -- the question was do i support raising the cap on social serity's of rich people pay their fair share. there's a ton this country where we did not celebrate attacking people based on their success. we did not go after people because they were successful.

i have watched this president go across the country attacking people. [applause] all the streets in america are connected. i have watched people connect wall street. we want to make sure that people pay their fair share. half the people in this country pay no income tax at all. when we talk about their share, what is a fair share? we don't want to raise taxes on the american people or grow government. government is too large already. we want to restrain the growth of government and when it comes to sell security and medicare and medicaid, the truth is the promise we are making young people have to the promises we can keep. you should say with to raise everybody's taxes. the tax rate would have to be,

but payroll tax is 15.3%. that would have to rise to 44%. we will not do that. hold on just a moment. i will give you a chance to speak in a moment. you will get to ask your question. all on a second and i will let you speak. [yelling and shoing] >> we are also on medicare whh is a tremendous program. what are you going to do to strethen social security,

medicare, and mediid witho cutting benefits? >> and you had your chance. anything else? >> i want to see what you are going to say. [laughter] >> you get to ask your question i get to give my answer. if you like my answer, you can vote for someone else. [applause] are you ready for my answer? i will not raise taxes. that is my answer. i will not raise taxes. [applause] if you want somebody that raises taxes, you can vote for barack obama. he is killing this economy. he is why 25 million people don't have jobs and cannot find jobs. >> wall street-free! >> you closed corporate tax

loopholes as governor o massachusetts to raise revenue and balance the state budget. if you are elected president, would you do the same thing? >> let's describe what is a loophole and was raising taxes. a loophole is when someone takes it that is of a tax lawyer and a way that was not intended by the legislation in my state, we had a special provision for real estate enterprises that owned a lot of real-estate. it provided lower tax rates in certain circumstances and some banks figured out that by calling them sells real estate companies, they could get a special tax break and we said no more of that. if there are taxpayers who find ways to distort the tax law and take advantage of what we call loopholes that are not intended by the people, absolutely, i by the people, absolutely, i