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| PM defends handling of downturn | PM defends handling of downturn |
| (9 minutes later) | |
| Prime Minister Gordon Brown has defended the way he has handled the economic downturn. | Prime Minister Gordon Brown has defended the way he has handled the economic downturn. |
| During an interview on the BBC's Andrew Marr show, Mr Brown said the new year would be "challenging and difficult" | During an interview on the BBC's Andrew Marr show, Mr Brown said the new year would be "challenging and difficult" |
| He said he was right to use fiscal policy to secure the economy - his priority this year. | He said he was right to use fiscal policy to secure the economy - his priority this year. |
| Ruling out any further bank bail-outs, he said any solution needed global co-operation. He also said he was not thinking about calling an election. | Ruling out any further bank bail-outs, he said any solution needed global co-operation. He also said he was not thinking about calling an election. |
| Mr Brown said he wanted to see a return to banks doing what they should be - "lending". | Mr Brown said he wanted to see a return to banks doing what they should be - "lending". |
| 'People protected' | 'People protected' |
| The prime minister also gave more details about a programme to create 100,000 jobs as part of a new initiative to curb rising unemployment and help the economy to stabilise. | The prime minister also gave more details about a programme to create 100,000 jobs as part of a new initiative to curb rising unemployment and help the economy to stabilise. |
| "We are not going to do what happened in previous recessions and allow people to go under," he said. | "We are not going to do what happened in previous recessions and allow people to go under," he said. |
| He said the length of the current crisis would depend on the amount of international co-operation and he had high hopes for the forthcoming G20 summit in London. | He said the length of the current crisis would depend on the amount of international co-operation and he had high hopes for the forthcoming G20 summit in London. |
| We are going to make sure that through this downturn, people will be protected Gordon Brown | We are going to make sure that through this downturn, people will be protected Gordon Brown |
| Defending his use of fiscal policy, Mr Brown said: "If the monetary system is not working as well as it should; if there's no likelihood of huge inflation in the next period of time; if you are not crowding-out private investment then government must play its role." | Defending his use of fiscal policy, Mr Brown said: "If the monetary system is not working as well as it should; if there's no likelihood of huge inflation in the next period of time; if you are not crowding-out private investment then government must play its role." |
| He said he was not going to accept "defeatism" and continued: "Things are going to go right because we are going to take the action that is necessary." | |
| When pressed about whether an election could be called, he said: "It is the furthest thing from my mind. My duty in these circumstances is to do everything I can to help people now." | When pressed about whether an election could be called, he said: "It is the furthest thing from my mind. My duty in these circumstances is to do everything I can to help people now." |
| "We are going to make sure that through this downturn, people will be protected." | "We are going to make sure that through this downturn, people will be protected." |
| The government plans to bring forward £10bn of spending on public works, digital technology and environmental projects to create new jobs. | The government plans to bring forward £10bn of spending on public works, digital technology and environmental projects to create new jobs. |
| He called for better international regulation of banks and blamed the global downturn on "unsupervised lending" mainly in the US. | He called for better international regulation of banks and blamed the global downturn on "unsupervised lending" mainly in the US. |
| Inflation fear | Inflation fear |
| Calling recapitalisation "necessary" for the survival of British banks, Mr Brown said: "We have got to accept we have lost some of the bigger players in this market so existing institutions are going to have to do more." | |
| He refused to be drawn on the matter of a 0% interest rate and said that was a matter for the Governor of the Bank of England, but he did say that falling interest rates helped to push inflation. | He refused to be drawn on the matter of a 0% interest rate and said that was a matter for the Governor of the Bank of England, but he did say that falling interest rates helped to push inflation. |
| Some 30,000 jobs are to be created in school repairs, in an attempt to help private construction firms who have suffered in the economic downturn. | Some 30,000 jobs are to be created in school repairs, in an attempt to help private construction firms who have suffered in the economic downturn. |
| Mr Brown also claimed his plans would be bigger than the multi-billion dollar "Green New Deal" planned by US president-elect Barack Obama. | Mr Brown also claimed his plans would be bigger than the multi-billion dollar "Green New Deal" planned by US president-elect Barack Obama. |
| Nationwide tour | Nationwide tour |
| The prime minister is to tour the country this week before a jobs summit involving government, business and unions, and says a further expansion of apprenticeships is also planned. | The prime minister is to tour the country this week before a jobs summit involving government, business and unions, and says a further expansion of apprenticeships is also planned. |
| Mr Brown confirmed the government is looking at ways to boost bank lending. | Mr Brown confirmed the government is looking at ways to boost bank lending. |
| BBC political correspondent Carole Walker says with unemployment at its highest level for more than a decade and many workers facing an uncertain future, Mr Brown is keen to demonstrate a new focus on the problem. | BBC political correspondent Carole Walker says with unemployment at its highest level for more than a decade and many workers facing an uncertain future, Mr Brown is keen to demonstrate a new focus on the problem. |
| But putting more taxpayers money into the banks would be politically risky, our correspondent added. | But putting more taxpayers money into the banks would be politically risky, our correspondent added. |
| The Conservatives say another bailout would be an admission that the government's approach to the recession is not working. | The Conservatives say another bailout would be an admission that the government's approach to the recession is not working. |
| Former Tory cabinet minister Michael Portillo remained unconvinced by the proposals. | Former Tory cabinet minister Michael Portillo remained unconvinced by the proposals. |
| He told BBC Radio 5 Live: "Some things he's bringing forward but other things he's putting back. | He told BBC Radio 5 Live: "Some things he's bringing forward but other things he's putting back. |
| "For example, two aircraft carriers have been put back a couple of years and people will know that they're very labour-intensive. | "For example, two aircraft carriers have been put back a couple of years and people will know that they're very labour-intensive. |
| "And also of course, if these things are being brought forward that means either that taxes have to be higher or borrowing has to be higher, and both of those are bad for economic confidence and they destroy jobs elsewhere." | "And also of course, if these things are being brought forward that means either that taxes have to be higher or borrowing has to be higher, and both of those are bad for economic confidence and they destroy jobs elsewhere." |