Conservative revival is 'a challenge'

The Lib Dem deputy leader Vincent Cable admits his party must 'rise to a very different situation'.

Vincent Cable MP, Lib Dem Treasury spokesman and Deputy Leader

ZEINAB BADAWI: Well we're joined now by the Party's Deputy Leader and Treasury spokesman Vincent Cable so...

VINCENT CABLE: Good morning.

ZEINAB BADAWI: Vince Cable, despite everything you seem to try to do you're pretty much stuck in those approval ratings of sixteen to eighteen per cent.

You don't seem to be picking up any support from disaffected Labour supporters.

VINCENT CABLE: Well the support we have which I think is a bit higher than that, it's normally eighteen, twenty per cent in most of the ...

ZEINAB BADAWI: Well the latest polls...

VINCENT CABLE: It's roughly...

ZEINAB BADAWI: ... it's gone down a bit hasn't it ...sixteen to eighteen?

VINCENT CABLE: It's roughly comparable to what it's been in same stage of parliament in, in the last ten years or so. We're in a much, we're in a much...

ZEINAB BADAWI: Well hang on, you say that. Two thou... but...

VINCENT CABLE: .. much stronger position when...

ZEINAB BADAWI: .. it was twenty three per cent two thousand and five at the General Election so it's gone down...

VINCENT CABLE: At the General Election itself and I think that's where we will may well finish up. And we're in a much, much stronger position than when we made our breakthrough in nineteen ninety seven.

I mean the key point is that we've, we're holding our own in those areas where we made a big breakthrough against the Conservatives, certainly in local elections, places like Cheltenham, Eastleigh that were once Conservative strongholds, we're holding our ground there. And what we now need to do is to show that we can win parliamentary seats in those areas where it's us against Labour and in the big northern cities like Newcastle...

ZEINAB BADAWI: But you're not doing that though are you?

VINCENT CABLE: We have done it in...

ZEINAB BADAWI: Look at Crewe and Nantwich...

VINCENT CABLE: ...

ZEINAB BADAWI: .. in the Midlands, I mean the Conservatives, you were nowhere to be seen really. And also Glasgow East. It just seems like the disaffected Labour voter is not going for you guys it's going for Tories.

VINCENT CABLE: Well Crewe was a Conservative Labour marginal. I mean there are big northern cities where the Conservatives have virtually disappeared. I mean Newcastle, Hull, Liverpool, Warrington, Burnley. That's where we are the effective Opposition to Labour. In many cases we control the council. And we now have to translate that into parliamentary seats. And that's a challenge but we'll rise to it.

ZEINAB BADAWI: So you're accepting then that you are finding a little bit hard in this current climate to get your voice heard?

VINCENT CABLE: I don't deny that it's not a challenge. I mean we're, we're dealing with a new situation. The Conservatives revived from the rather desperate position they were in in the last ten years or so. And we've got to rise to a very different situation. And I think we will do that.

ZEINAB BADAWI: And I mean there's a lesson here for Labour isn't there? Because I mean you changed your leader, Ming Campbell made way for Nick Clegg but it didn't necessarily translate into a huge increase in support for you. So it's not the personalities, it's the policies that perhaps people are interested in.

VINCENT CABLE: Well it's a bit of each. And I think Nick Clegg is making a big impact. I mean in a quiet way. I mean he's effectively performing in Prime Minister's Questions. I think the commentators notice that. He asks good questions. They're well prepared and they're very thoughtful and effective. And I think the same thing is coming through in national media but it's a slow process ..

ZEINAB BADAWI: He's a quiet man ...

VINCENT CABLE: .. of building, it's building ..

ZEINAB BADAWI: .. a bit like Iain Duncan Smith ..

VINCENT CABLE: No.

ZEINAB BADAWI: .. a quiet man ... don't you want to make more noise in politics?

VINCENT CABLE: No, no, no. I mean if you remember what happened when Paddy Ashdown and Charles Kennedy first came in, it took a long time before the public got to know them and like them and trust them. And the same thing is happening with Nick. He will be a very effective leader and, and we'll do very well under him.

ZEINAB BADAWI: But now you are kind of shifting tack as it were from trying to get supporters from the Labour Party and concentrate in your fire it would seem more - sorry the other way round. You're moving and trying to concentrate your fire more on Labour rather than the Conservatives. Is that because you feel in a way that you can't beat the Conservatives so you may as well take on a wounded Labour?

VINCENT CABLE: But we'll hold our own against the Conservatives. That's what we have to do and that's what we're doing. And we're certainly not changing tack in terms of basic values and policies. They'll remain the same. But it's clear that the main political opportunities are where people are looking for an alternative to the Labour government as they do in many of the Northern cities and the Midlands as well.

And, and where the, where the Conservatives are nowhere and we're the effective opposition in those areas. And that's what we have to focus on politically. But the values remain the same and the policies remain the same and the emphasis on the fair taxation system, coming up with practical solutions to the problems of the housing crisis and the energy crisis. Those things we will focus on as we did before�

ZEINAB BADAWI: Come to that in a moment. But I mean perhaps it's also entered your calculation 'cause we know that Nick Clegg the leader has said that in the event of a hung parliament at the next election he would look at the Queen's Speech if there was a Conservative minority administration and perhaps join that.

VINCENT CABLE: We're not talking about going into coalition with either of the other two parties. We're ... a distinct party ..

ZEINAB BADAWI: So why does he say that then? I mean you've not ruled it out have you?

VINCENT CABLE: We're not ruling out any options. And we've always said - and we do this already in local government - that if you need to work with other parties in the national interest you, you do so. And that's an entirely sensible position. But we're not looking to team up with other parties.

But we want to make it clear we're not leaning in one direction or the other. We're our own party. We have a distinct identity, distinct set of policies and that's the basis on which we'll campaign.

ZEINAB BADAWI: But you've got to have a kind of strategy haven't you? And if there is a hung parliament which there might be at the next general election, you can't rule out that you, for instance if you yourself were offered some kind of ministerial position you take it.

VINCENT CABLE: No. I'm not angling for a job in government. I mean I would hope that the p... the public would vote us in. I mean that's what we're basically about. But we're not looking for that kind of deal. We're going to set out very clear distinct set of policies, hope the p... the public will vote for us.

And, and we're certainly not leaning to one party or the other or to get in bed with one party or the other. That's not the strategy and we're certainly not aiming to do that.

ZEINAB BADAWI: Okay. And looking to the, the economy of course 'cause that's, that's your brief. I mean everybody's talking about the possibility of recession. I mean when you look at Europe Denmark is officially already in a recession. People are worried about Ireland, Spain, also the United Kingdom. I mean what do you think are the chances of perhaps really hard economic times for us all here?

VINCENT CABLE: Well it's very clear that we've already got hard economic times and it's affecting very large numbers of people already.

ZEINAB BADAWI: What recession?

VINCENT CABLE: Well recession is a technical concept, refers (sic) to the fact that you get no growth in two successive quarters. And that, it looks as that may well happen. But actually I don't think that's the point. I think what, what we're talking about here is an environment in which a lot of people are suffering a great deal of hardship. And where you have a particular problem targeted... on the housing market.

One of the big failings of the government which makes us distinct from some other western countries is that the government allowed personal indebtedness linked to house prices to build up into an enormous bubble which is now bursting. I mean it's going to have very painful consequences. And that's a British problem. It wasn't something we imported from overseas.

ZEINAB BADAWI: 'Cause of course the government says look at the credit crunch, you know triggered off by the dodgy mortgages in the United States and they say that's what's caused all, an awful lot of the problems here.

But I mean what do you think that can be done? 'Cause everybody's very scared of this stagflation where you have stagnant economic growth as well as high levels of inflation. I mean Bank of England for instance next week is moving to, it's perhaps going to put up interest rates. Is that the right way to go forward, make money more expensive for people to borrow in these very hard times?

VINCENT CABLE: Well there aren't any easy solutions otherwise this government would have found them. And it isn't possible actually for a massive cut in interest rates because the Bank of England is genuinely worried about inflation.

It isn't possible to run massive budget deficits because the government's public finances don't allow it. I mean I think what needs to happen - and I've been arguing this case with my colleagues - is that we need to have targeted intervention. For example in the housing market what's now happening is that builders, big builders are going bust. Developments are grinding to a halt. There is an opportunity for housing associations, local councils to acquire property, use it for social renting, use it for social lending.

There's an opportunity for, for doing that. On a, in a carefully planned targeted way. The government have a plan but it's a programme, but it's a very small one. Alternatively, I mean the other thing which I think ought to be done is that we need to be intervening with the mortgage lenders, the banks, to make sure they don't force large numbers of people out of their homes through repossessions and making sure that their code of conduct which is quite sensible is made binding.

ZEINAB BADAWI: No easy answers ..

VINCENT CABLE: No easy answers.

ZEINAB BADAWI: .. as you said there. Must just ask you very quickly. It was your famous jibe when you were acting leader of the Liberal Democrats in Prime Minister's Questions that Gordon Brown had gone from being Stalin to Mr Bean. I mean given all his current woes at the moment has he taken on another guise?

VINCENT CABLE: Well I won't rise to the challenge. I mean I, I, the, perhaps it was a slightly cruel comment, but I'm not a sadist, and attacking a wounded animal may not be the best way of dealing with the situation.

I think one of the problems at the moment is that although I think everybody accepts that Gordon Brown's in terrible difficulty, when he does something right nobody notices. I mean over the last few weeks he was actually rather good at intervening in these world trade talks in a very positive way, trying to save them. But he got very little credit for it. And I think that's, that's the tragedy. It's gone so far that nobody recognises when he does something worthwhile.

ZEINAB BADAWI: Okay Vince Cable, thanks very much.

INTERVIEW ENDS

Please note "The Andrew Marr Show" must be credited if any part of this transcript is used.

NB: This transcript was typed from a recording and not copied from an original script.

Because of the possibility of mis-hearing and the difficulty, in some cases, of identifying individual speakers, the BBC cannot vouch for its accuracy

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