TELEGRAPH 10.12.08
1. David Cameron: Government's 'flawed' borrowing policy putting
economy at risk
David Cameron, the Conservative leader, has accused the Government of
causing long-term damage to the economy by the "flawed" policy of
boosting borrowing at the start of a recession.
By Rosa Prince, Political Correspondent
Speaking ahead of a major speech on the financial crisis, he called
for an immediate general election so that voters could decide whether
they supported Gordon Brown's response to the downturn.
He revealed that the Tories would not sign up to the Government's
spending plans, announced in last month's pre-Budget report, and
warned that the pound was at risk as ministers headed towards
"Italian" levels of borrowing which would leave a tax "bombshell" for
future generations.
Interviewed on Radio 4's Today programme, he said: "What I think is
really profoundly wrong is the Government's decision, even though
we're borrowing at the absolute limit, to borrow another £20 million.
I think that is a massive mistake."
Mr Cameron rejected suggestions that he was going out on a limb by
opposing a strategy adopted by most other world leaders, and with the
Government's popularity apparently increasing following a new poll
giving Mr Brown and Alistair Darling, the Chancellor, a nine point
leader over the Tories in terms of who the public trust to handle the
economy.
Describing the increase in borrowing as an "error," Mr Cameron went on:
"The polls may show what the polls may show. I think that Labour's
borrowing binge is actually going to make the recovery more difficult.
"The real danger is going out borrowing £20 billion when you're at
the limit of what's acceptable.
"The Government is putting the whole of the British economy at risk.
Labour want to borrow even more spend even more tax even more. I'm
worried we're going to hit future generations with a tax bill.
"I know Opposition leaders always call for elections but I think we
really need one.
"They're asking people to go ahead with a borrowing binge that is
going to store up debt for future generations and I want to stop that."
Later, the Tory leader in a speech to the London School of Economics
to set out the "profound" choice facing voters between Labour short-
termism and his own "responsible" determination to "get a grip" on
public spending.
"A very clear choice is emerging in British politics today.
"It is about how we deal with the greatest economic problem to
confront this generation - the recession and the record level of
public debt.
"Labour's response is to ignore the fact that we're already borrowing
at record levels, deliberately borrow another £20 billion for short-
term giveaways today - and leave worrying about the debt until tomorrow.
"The Conservative response is to recognise that we cannot go on as we
are: that when you're already borrowing so much it is wrong to
deliberately borrow even more.
"Instead we should get spending under control to set our economy on a
sustainable path. This is a very big and profound choice.
"I think everyone knows that fiscal responsibility is right for our
economy tomorrow."
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2. Millions struggling to pay off credit cards as debts rise
Almost 4 million borrowers are unable to cope with their rising
credit card bills as the economic downturn forces people further into
debt.
According to the survey by AXA, 3.7 million people are struggling to
pay their credit cards, while 1 m illion borrowed too much money and
can't keep up with mortgage repayments.
Tomorrow the Consumer Affairs Minister, Gareth Thomas, is due to
accept principles, proposed by the credit card industry, on how it
will ensure those with existing debts are treated fairly.
========================
THE SUN SAYS - - - 10.12.08
Loan voice
TORY leader David Cameron's call for caution over sky-high borrowing
may conflict with expert opinion that we must spend our way out of
recession. [most opinion now disagrees! -cs]
But isn't he right to worry about the national debt which is now set
to DOUBLE in the next four years?
Should we not be concerned that state borrowing will soar to £1
TRILLION - which must be repaid in higher taxes?
Nobody - neither Gordon Brown nor the army of expert economists -
knows for sure if this will work.
In such circumstances, a note of prudence is surely worth a hearing.
========================
DAILY MAIL 10.12.08
A new-look Cameron shows his substance
By DAILY MAIL COMMENT
David Cameron says action need to be taken to control public spending
Day by day, the differences between Government and Opposition over
how to handle the economy grow wider and clearer. At last, voters are
being offered the beginnings of a genuine choice.
For Labour, Gordon Brown pumps up state spending and borrowing to
truly terrifying levels - and hopes that with a little help from
higher taxes (though not until after the election, of course) the
future will take care of itself.
Meanwhile, a new-look Tory leader is rising to challenge him.
All but gone is the old David Cameron, the touchy-feely
environmentalist who believed in 'sharing the proceeds of
growth' (what growth?).
In his place is emerging a figure of more substance, who condemns
Labour's 'economic crimes' and warns: 'Taking action to control
public spending is an urgent priority - right now.'
Though the details remain pitifully sparse, the Mail couldn't agree
more.
Now, of course, Mr Brown might - just might - be right. And like
Labour, Mr Cameron too is taking a huge gamble. But his is of a very
different sort.
He knows many may, for now, prefer Labour's rose-tinted view that we
can afford to go on borrowing as if there's no tomorrow.
So he's staking everything on the hope that voters will come to
realise what terrible risks this Government is taking.
To understand just how dangerous they are, look no further than
yesterday's official figures, showing that in less than 25 years,
nearly a quarter of Britons will be over 65 - up from one in six today.
That will leave only 2.2 people of working age (down from 3.3 today)
to support each pensioner.
Yet this Government has raided our retirement funds - leaving a black
hole of £155billion (and counting) - while doing nothing to end the
pensions apartheid that forces taxpayers to fund lavish packages for
state employees.
Isn't that burden on our children's generation quite large enough,
without adding the duty to repay vast new debts?
Mr Cameron is right to be worrying about Britain's future. Wouldn't
it be comforting to believe Labour could think further ahead than the
election?
========================
FINANCIAL TIMES 10.12.08
Cameron in tough review of spending
By Jean Eaglesham, Chief Political Correspondent
David Cameron has ordered his shadow cabinet to recommend spending
cuts in their policy areas by next year, as the Tory leader hardens
up his economic policy ahead of a potential spring general election.
The Conservatives would fight the next election on a commitment to
impose harsher curbs on public spending than Labour, Mr Cameron said
on Tuesday. Adopting his toughest fiscal stance to date, the
Conservative leader pledged an era of "good housekeeping" to
compensate for Labour's "decade of reckless spending".
In a pledge that might yet come back to haunt him, Mr Cameron said a
Conservative government would end Labour's "shockingly casual" use of
public money. "There will be nowhere to hide the foreign trips or
office redecorations at the taxpayers' expense, no secret books to
store those salary perks and expensive unnecessary training," he said
in a speech to the London School of Economics on Tuesday.
The opposition party would go further than the £35bn of efficiency
savings promised by Labour, Mr Cameron said. He detailed his orders
to every shadow minister to "go through their budget line by line, to
root out wasteful spending and to abolish programmes that have served
their purposes"
.
The Tories yesterday ratcheted up their attacks on the government's
economic competence, as a poll suggested Gordon Brown had been the
main political beneficiary of the downturn. The Populus survey for
the Times showed Labour enjoying a six-point advantage over the
Tories in terms of being trusted to handle the recession. The
opposition party's overall lead was cut to four points, with its
share of the vote slipping below the electorally crucial 40 per cent
mark.
Mr Cameron sought to regain the economic initiative by yesterday
presenting voters with a "clear choice" between the "big economic
mistake" of Labour borrowing more to finance a £20bn tax and spending
stimulus and the prudent approach offered by the Tories.
George Osborne, the shadow chancellor, tried to ram home the message
by asserting that the cost of insuring government debt had "soared"
to almost double that of McDonalds, the fast food chain. "Gordon
Brown's damaging economic policies are turning the country into
McBritain," Mr Osborne stated.
But Labour accused the Tory leader of "unbelievable complacency".
Alistair Darling, the chancellor, told journalists: "I cannot believe
that it is right that we should stand back and, as he seems to be
implying, let the recession take its course."
========================
POLITICS HOME 8.12.08
Nick Assinder's PMQs Sketch
It's one of cinema's greatest quotes: "Flash I love you, but we've
only got 14 hours to save the Earth". Prophetic or what?
Perhaps not everyone loves Not-Flash Gordon - David Cameron's
reaction borders on loathing, for example - and he may have taken a
bit longer than 14 hours (but then he didn't have the help of Brian
Blessed's Prince Vultan who bellowed entire planets into submission ).
But he did indeed save the world - he told us so. In one of those
awful slips of the tongue that encourage a belief in the power of the
subconscious to overpower even the most repressed individuals, the
Prime Minister blurted: "We not only saved the world....."
We never heard what the implied "but" was going to add. Perhaps he
was about to tell us he had also slain evil emperor Ming the
Merciless. Except the Liberal Democrats beat him to that months ago.
So he floundered a bit.
A more nimble, flash PM might have hit back with a self-deprecating
quip. Not Gordon, of course. And, in any case, while that might have
helped him through the immediate embarrassment, it would have done
nothing to stop what is now going to be a relentless campaign.
Wait for the video clips, the soundbites, even the party political
broadcasts and election hoardings that will remind us time and again
that Prime Minister Gordon Brown believes he is the man who saved the
world.
SAVE FACE
David Cameron almost needn't have bothered rubbing salt into the self-
inflicted wound - still the only type of wound inflicted on the PM in
this exchange. But he did anyway. Well he's only human.
"Now it's on the record. He is so busy saving the world he has
forgotten about businesses...." And, later: "The difference between
this side and him is, while he thinks he is saving the world, we are
worried about saving small businesses."
==================
Conservative Home's 'take' on PMQs
12.04pm: David Cameron asks about getting bank lending flowing again.
Recapitalisation's main aim was to get credit flowing again and it
has failed. Brown replying accidentally says "we not only saved the
world"! Hysterical laughter from Tory benches.
12.06pm: David Cameron says all over the country there are businesses
having overdraft facilities withdrawn. The world is NOT copying the
details of the Government's recapitalisation plan. The Government is
lending to banks at 12% but insisting that they lend at 6%. Brown
responds by defending his fiscal stimulus. The Tories are clinging to
the failed policies of the 1980s, he says
12.08pm: If things are going so well why is the Council of Mortgage
Lenders talking about about "conflicted" government policies? Brown
says Tories would let recession take its course.
12.10pm: The key issue, reiterates Cameron, is to get bank lending
flowing again. That's the Bank of England Governor's view. The VAT
cut is pointless. Will the Prime Minister endorse our National Loan
Guarantee Scheme? The IoD, CBI and FSB all have. On the day that
Labour is copying Tory welfare ideas this is another idea that the
Government should copy. Brown says that Labour already operate
schemes that underwrite financing to businesses. Nothing will help
the economy, the PM concludes, without a supporting fiscal stimulus.
The Tories are on the wrong side of history.
12.12pm: Brown is on the wrong side of maths, counters Cameron.
Labour is only supporting 0.2% of potential lending to business.
Brown has brought Britain to the brink of the deepest recession in
the G7. Brown says Tories are not fit for government because they are
trapped in the 1980s.
EDITORIAL VERDICT: Clear win for David Cameron. Brown was put on the
defensive over underwriting bank lending. DC is determined to make it
clear that the Conservatives are not the 'do nothing' party on the
economy. But PMQs won't be remembered for the serious exchanges but
for Brown's 'We not only saved the world gaffe'. Thanks to Crown
Blogspot it's already on YouTube http://playpolitical.typepad.com/
goofs_and_gaffes/2008/12/brown-we-not-only-saved-the-world.html
========================
POLITICS HOME - Comment
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Sky News at 12:49
Robathan: Small businesses aren't able to get credit from banks
Andrew Robathan, Conservative MP
Mr Robathan repeated the Conservative call for a national loan
guarantee scheme, saying small businesses are unable to get credit
from the banks.
"Although the banks are capitalised they are paying back interest [to
the state -cs] at 12% - small businesses can't borrow at that rate.
Small businesses aren't able to get credit from the banks. What we
want is a proper national loan guarantee scheme."
When it was put to him that the Prime Minister said such a scheme
already exists he said, "Flash Gordon announces these things, asserts
them, but it's rubbish".
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