All-party discussion

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

ANDREW MARR: Returning to George Osborne and Vince Cable in the studio.

I mean what would you like the Chancellor and the Prime Minister to do to actually improve cross party cooperation? What's the thing you'd like them now to do?

GEORGE OSBORNE: Well I think ... First of all, I'm very grateful that Alistair saw me on Tuesday when I asked for a meeting and that he allowed me to go in and speak to Treasury civil servants on the Friday.

I think if there is going to be a big step - for example some recapitalisation of the banks involving the government in that...

ANDREW MARR: And you suspect this may be happening on the way?

GEORGE OSBORNE: Well I think this may be, they may be thinking about it. I certainly think they should be thinking about it if they're not. Then I think that the Opposition parties, the Conservative Party should be involved in those discussions because in the end the more you can get a national consensus on this...

ANDREW MARR: The better for everybody.

GEORGE OSBORNE: ... the more, the more you can convince the public that what is a very difficult step is a necessary step, the better for everyone.

ANDREW MARR: Vince Cable?

VINCE CABLE: Yes, we have to work together. I mean I'd like to see an idea that the government itself has developed for putting more money into the housing sector.

They've approved �9 billion in housing, but it's not been spent and the money could be used to acquire land, surplus property at big discounts, provide more social housing, put more money into the housing sector, stop the builders going bust. I mean that's an area where we agree intellectually on the principle, but they've got to get on and do it.

ANDREW MARR: Chancellor, are those the kind of ideas that you're open to talking to?

ALISTAIR DARLING: Well, I made it clear to both Vince Cable and George Osborne when I saw them last week that I'm very happy to talk to them and I think you know there is room for cross party discussions.

But what I'm very clear about is that we're looking at a whole range of proposals. I want to make it clear that I'll do whatever it takes as I said not just to stabilise the system...

ANDREW MARR: Alright.

ALISTAIR DARLING: ... but also to help going forward. And that means looking at some, perhaps some pretty big steps that you wouldn't take in ordinary times, but we're ready to take them because, as I say, we need to get through this difficult time and I'm determined we'll do it.

ANDREW MARR: Chancellor of the Exchequer, thank you very much indeed for joining us.

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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