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CNN International: Votes were Cast by Conservative Party Members across UK; Truss: Elected as a Conservative, will govern as Conservative; Johnson's Successor Faces an Economic "Catastrophe"; Police in Canada Search for two Suspects after Mass Stabbing. Aired 9- 10a ET
Aired September 05, 2022 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
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MAX FOSTER, CNNI HOST: Hello Max Foster, welcome to our special coverage from London. The UK has a new Prime Minister. A short while ago the Conservative Party announced its members have chosen Liz Truss to lead the party and the country.
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UNIDENTIFIED MALE: Rishi Sunak 60,399 Liz Truss 81,326 therefore, I give notice that Liz Truss is elected as the Leader of the Conservative and Unionist Party.
(END VIDEO CLIP)
FOSTER: The former foreign secretary who won by 57 percent or 43, a bit tighter than the polls had predicted. That was a poll amongst party members only. As she said she campaigned as a conservative and will govern as a conservative. She acknowledged the immediate crisis facing the people of Britain, the spiraling cost of living driven by huge increases in fuel bills.
(BEGIN VIDEO CLIP)
LIZ TRUSS, UK CONSERVATIVE PARTY LEADER: I will deliver a bold plan to cut taxes and grow our economy. I will deliver on the energy crisis, dealing with people's energy bills, but also dealing with the long term issues we have on energy supply.
(END VIDEO CLIP)
FOASTER: It was a defeat for Rishi Sunak, the Former Finance Minister whose resignation sparked the departure of a string of government ministers leading to Boris Johnson's downfall.
It's now two months as Johnson announced that he was leaving, he presided over a series of scandals.
On Tuesday, he'll submit his resignation to Queen Elizabeth. She will then appoint Liz Truss as Prime Minister. International Diplomatic Editor Nic Robertson is in Downing Street and Nic have very long campaign we've heard so much from Liz Truss, we've had so little detail. So what do we know about what sort of Prime Minister she'll be?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, it was interesting that she came out and congratulated Boris Johnson the way she did, getting Brexit done crushing Jeremy Corbyn, the Leader of the opposition, at that time of the last elections rolling out the vaccine, standing up to Vladimir Putin being supported all the way from Kyiv in Ukraine to Carlisle, the Northern Border of England with Scotland.
And I think that tells you there that she is, you know, had been supportive up until the end publicly of Boris Johnson. And I think to a degree we're going to see her continue with some of his foreign policy on Brexit, on dealing with Vladimir Putin on the war in Ukraine.
Here is going to be a different matter entirely of she was not going to raise taxes as Boris Johnson, her plan to, she is in fact, saying that she will bring them down. That's the way she thinks to bring the economy back there.
She'll tough tackle the tough issues. But I think to that point that she made about Boris Johnson crushing Jeremy Corbyn, the leader of the opposition, already we get a sense of the pushback from the Labour Party. Labour Party saying and this is where Liz Truss's track record of being in cabinet longer than any of the other candidates in the campaign to become Prime Minister or lead the party, that Liz Truss does not have any of the answers.
That's the word from the leader of the Labour Party. So she will get no slack, no honeymoon period from the Labour Party, I think not expected from her part, but it is to lead. She says as she campaigned as a conservative on those conservative values, as she said there, and specifically tackling the energy issue first, Max.
FOSTER: Well, on the international stage, she's obviously quite well known because she's foreign secretary. So a long history of different government jobs she's very experienced, but what do we know about her position on the United States on Russia and China?
ROBERTSON: Well, I think her office or the Foreign Office has been very keep strong and good relationships with the United States, even dispatching senior Northern Ireland official over there because that's how the British government deals with the issue of Northern Ireland and Brexit and the Northern Ireland protocols is something that's important to President Joe Biden.
Now Liz Truss has indicated that she will be tough on those issues in the same way that Boris Johnson was so that her office does value very clearly that strong relationship with the United States and will clearly as Prime Minister she'll work well to continue to improve that relationship.
[09:05:00]
ROBERTSON: I think in terms of Brexit, the expectation is by what she said that the European Union is expecting there to be contention over how the UK wants to get the Northern Ireland protocols changed? And that that is something that's going to lead to tensions potentially, with the European Union in terms of Vladimir Putin and Russia and support for Ukraine.
I think that will be very similar to what we've seen from Boris Johnson, a position of the British government support NATO support the military support an economic support for the government in Ukraine and see, it is important to face down Vladimir Putin's challenge.
In terms of energy, that is borrow a financial borrow, to head off the high costs of energy are looking, as we heard from some of the interviews you've been doing, potentially to other energy resources in the UK, more oil fields in Scotland, the possibility of fracking and the nuclear power stations that Boris Johnson in the past week, has taken a strong hand in saying that's the way forward to try to reduce the UK's energy costs.
So again, all of this really comes under the table for her when she walked in through the front door tomorrow, but already the planning in place and I think the formulations that a cabinet already has some structure, Max.
FOSTER: OK, Nic in Downing Street. Thank you. Those are the big international issues. But the immediate concern crisis, if you like is domestic Liz Truss promising to tackle Britain's spiraling costs of living crisis, rising food, petrol, energy prices driven by Russia's war in Ukraine.
Initially but Anna Stewart has been looking at that because Anna, this is a job that very few people would want to take on. But I guess when you get called up to the Prime Minister, you never say no?
ANNA STEWART, CNN REPORTER: Particularly when you've had some six weeks to prepare for it, there will be no honeymoon period, in terms of economic policy. And actually today in the victory speech Liz Truss said she is going to be delivering a bold plan and included cutting taxes and growing the economy growth is the big focus, I think, for this administration.
Listen, this is an economy that no incoming Prime Minister would want to take on. Frankly, it's one of the worst situations for an incoming British Prime Minister ever looking even this morning at the British pound, which hit a new low the lowest it's been since the dollar since 1985.
As energy concerns mount because Gazprom has switched off this big pipeline to Europe. You know, it's an energy crisis that is just getting worse. And then we've got to look at inflation. And that's the big question, where the energy situation getting worse is inflation going to - go even further than the Bank of England expects?
You can see from this graphic here, the UK inflation is at over 10 percent. It is higher than the Euro Zone then the United States is the highest inflation figure of the G7. The Bank of England expects it to top 13 percent.
But honestly, that's not the grievous outlook, actually from Goldman Sachs last week, saying that potentially inflation next year, could top 22 percent. And all of this having such a real impact on people spending households, also businesses, of course, largely due to the rise in energy caps, which is the maximum energy suppliers can charge households and you can see how this has risen just since April of this year.
It's already going to have tripled next month when we get the next increase and by January next year, it will almost have quintupled. So households, each year expected to be able to find an additional 4000 pounds or $4,900.
This is the situation the public wants to see the new prime minister tackle and quickly as well. It is expected that perhaps the new prime minister will announce some sort of freeze on the increased cap that you see there.
This could be a problem for economists though, because what they don't want to see really is the UK at this stage borrowing even more, just as it's come out of the pandemic, it doesn't want to see inflation further entrenched in some of the measures that Liz Truss announced even today on the basic form of tax cuts does potentially have it could potentially be inflationary, so it could exacerbate that situation. So we do await though this bold plan, and then we can really get to grips with it.
FOSTER: Well, we should get something by the end of the week, shouldn't we? She's promised that. Anna thank you! Joining me now Daniel Kawczynski, a British lawmaker Member of the Conservative Party, he back Liz Truss in the leadership contest but actually best known probably as a big Boris supporter. So you didn't want any of this to happen in the first place?
DANIEL KAWCZYNSKI, CNN REPORTER: Well, I think this is our fourth Prime Minister since the referendum. And I'm not somebody who likes chopping and changing the person that.
FOSTER: Would it be fair to say that Boris Johnson's supporters all supported Liz Truss so there's an element of continuity here?
KAWCZYNSKI: I think so. I think Liz Truss showed a tremendous amount of loyalty to the Prime Minister. She stuck with him in the difficult times when the media in this country were obviously baying for his blood. And I think that has engendered a lot of support for far from people like me and other people who were loyal to Boris? Yes he who wields the knife and never wears the crown.
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FOSTER: Liz Truss isn't necessarily known to international audiences, and indeed, not in many parts of the UK, but she's very well known here at Westminster, isn't she? She's the longest serving Cabinet Minister. So that really speaks to her political ability and astuteness.
KAWCZYNSKI: Yes, and also, she's only been a Member of Parliament for 12 years. So it's very rare for somebody to be in parliament for such a short period of time, and become the leader of the party and ultimately Prime Minister.
But the reason I voted for her was because of her strength as Foreign Secretary, she stood with Boris Johnson, shoulder to shoulder against Vladimir Putin. I think the United Kingdom has shown tremendous leadership on our country men when it comes to standing up to the increasing belligerence and unreasonable conduct of the Russian regime but also her ability to work with her civil servants to negotiate trade agreements.
We were told that outside of the European Union, we would be too small, too inconsequential to do these trade agreements by us. She signed 82 bilateral trade agreements in one year, and has done the preparatory work for us to join later this year.
The CPTPP, which is the world's largest trading organization, when Britain enters the CPTPP, later this year, the CPTPP officially, becomes the largest trading bloc, bigger than the European Union. So I admire her ability to deliver. And that's exactly what we want.
FOSTER: That's why we're here. I'm going to deliver - we never get any detail. This has always been the criticism of that. She's not very good with the detail. We just don't actually know specifically what she's going to try to do?
KAWCZYNSKI: Well, she's been Foreign Secretary up until - still is foreign secretary as things stand at the moment. She doesn't become prime minister until tomorrow, after her trip to see her majesty at Balmorals, I think it would be inappropriate for the Foreign Secretary and then previously to that the international trade secretary to be publicly saying something different to the Prime Minister, allow her to get into number 10 Downing Street.
She's promised to hit the ground running. We expect her to grab everything, the bull by the horns, and make a lot of announcements in the first few weeks of her premiership.
FOSTER: Boris Johnson's final speech here was interesting, wasn't it? He implied that his work wasn't quite done. And I did notice that one of the big betting companies in the UK has already got him as the front runner to replace Liz Truss?
KAWCZYNSKI: Well, I think that he is - I've described him to a friend of mine this morning as a Lazarus. I think a lot of people have written them off many times, and he's come back. I very much hope he stays in the House of Commons.
He remains a member of the parliamentary party. And I very much hope that in future Conservative government utilizes his talents. So I'm not sure in what capacity but he still has a lot more to offer.
FOSTER: How's he feeling at the moment with all of this? KAWCZYNSKI: Well, I think you'd have to ask him, but I mean I stood at the 1922 Committee the day before he resigned. And I remonstrated with my colleagues and I said that, to take on the British electorate.
And to change leader halfway through a parliament is something that one should be very cautious about, I still think that he could have won the next election for us. It's all about now, who wins the next election?
With only two years to go, unity within the political party is going to be essential. People will try to divide us no political party wins in the election. And the media people like your good self, will spot a mile off a scintilla of division within the parliament.
FOSTER: Let me do my job and then perhaps bring up tax. And Rishi Sunak very clearly didn't think taxes should be reduced now. Liz Truss say they should be reduced now. Is that the new dividing line within the party, and particularly when you consider that actually you did a bit better than many expected and she's going to have to integrate more of his team into the cabinet?
KAWCZYNSKI: Well, I agree with that. I'm a fiscal conservative, a hawkish fiscal conservative, and I'm very pleased that from 2010 when we got into office in 2019, we were reducing the deficit every single year down from 170 billion down to less than 20 billion. That's called living within your means.
Labor corded austerity; we call it reducing the deficit in the good times. But at the moment is not a good time with huge increases in energy bills. This is the time where I think we're going to have to borrow a little bit more money to get British businesses through this very difficult energy crisis.
FOSTER: OK, Daniel Kawczynski thank you very much indeed! Well, it's an exciting day tomorrow anyway, isn't it when a new prime minister is appointed, always interested?
KAWCZYNSKI: Absolutely.
FOSTER: Thank you for joining us. Coming up, the Euro hitting a new 20 year low against the dollar, what's behind the fall? Plus a massive manhunt in Canada following a deadly stabbing spree the details next.
[09:15:00]
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FOSTER: Welcome back! The Euro dropping to a fresh 20 year low against the dollar over the region's energy crisis, natural gas prices are soaring as Russia extends its halt of gas to Germany. Clare Sebastian joins us now with more and Clare Russia effectively blaming sanctions for this German issue?
CLARE SEBASTIAN, CNN CORRESPONDENT: Absolutely Max, this drop in the Euro and the subsequent rise that we've seen this morning and European natural gas benchmark futures up some 25 percent the last time I looked, all of that is related to the news out on Friday that Russia has now stopped part of a plan maintenance.
But they're now extending the stoppage of all gas flows through the Nord Stream I. A reminder that this is a pipeline that used to deliver about a third of the gas that Europe imported from Russia at least that was the case in 2021.
So a critical artery now it's down to zero that isn't gas prices soaring. The Euro has been heavily correlated to gas prices. It is not so much moving on ECB policy as it is on the disruptions to gas supplies Max.
And now we have comments this morning from Dmitry Peskov, the Kremlin Spokesman who sort of strongly implied that in order for this disruption to end Western sanctions have to be lifted. He said that sanctions are the only reason that this is happening.
And that undoubtedly in his words, the gas supply would resume if the sanctions were lifted. So it does not seem that Europe is ready to cave to that kind of blackmail. So it seems that this disruption will continue. And that of course, with the pressure on the Euro piles pressure on the European Central Bank, which meets this week, to act aggressively to bring down inflation.
FOSTER: In terms of oil prices, they're also up about 1 percent?
SEBASTIAN: Yes, they've come up I think Brent is now over 3 percent. That's a response to what we've heard this morning from OPEC Plus, The Qatar said it was going to increase production by admittedly a very small amount 100,000 barrels per day in September is now reversing that for October.
October production targets will go back to their August levels according to the cartel. It's a very small amount Max but it's symbolic but it - because it shows that OPEC is now very concerned that prices which have come down some 25 to 30 percent from there June peak will continue to fall because of recession worries in Europe because of continued COVID locked down in China.
[09:20:00]
SEBASTIAN: And they are therefore reducing production and that is sending oil prices high and not something that's going to make them any friends in the face of these incredibly high inflation rates and cost of living crises throughout many countries.
FOSTER: OK, Clare, thank you. Now the Israeli military admits Al Jazeera Journalist Shireen Abu Akleh likely killed by Israeli fire. The Palestinian/American was fatally shot in May was covering an Israeli raids in the West Bank. The Israeli military just released the findings of the investigation of the incident that our school has been looking through it have explained how this happened Hadas?
HADAS GOLD, CNN CORRESPONDENT: Yes, Max. So this is a long awaited report that we've been waiting to hear from the Israeli military their conclusions on how the Palestinian American Journalist Shireen Abu Akleh who was well known here and around the world, how she was killed while covering that Israeli military raid?
Now, according to the Israeli authorities, while they still say that they cannot for sure conclusively decide who actually fired the fatal bullet, they are finally saying that it was most likely Israeli gunfire that killed her. They said it most likely came from soldiers sitting in an armored military vehicle south of where Shireen and her colleagues were standing.
And they are saying that the soldiers did not identify them as journalists and thought that they were firing at Palestinian militants. They said that the soldiers had been under fire for the hour and 15 minutes before Shireen was shot. And that despite the fact that Shireen and her colleagues were wearing protective helmets and vests that said press on both the front and the back.
They said that they know that the soldiers did not know the soldier did not identify them as journalists their identity. They said things as though the armored vehicle has a limited range of science so that the soldiers did not know that they were firing at a journalist.
They added that the soldier and IDF senior officials would regret what happened. They say this was not supposed to happen and it should not have happened that the soldier did not do this on purpose.
Now importantly, to add in all of this is the question about whether there would have been any sort of criminal prosecution. But the Israeli military Advocate General's Office says that there will not be any sort of criminal prosecution against the soldiers involved because they determined that the soldiers did not deliberately fire as anyone identified as a civilian and in particular, at anyone identified as a journalist.
Now we do have a reaction that just came out in the last few minutes from Shireen Abu Akleh's family. They say that they expected Israel to refuse to take responsibility for murdering Shireen that they are not surprised by the outcome, but that they remain deeply hurt, frustrated and disappointed.
And they are calling still calling for a thorough independent and credible U.S. investigation that leads to accountability which they says is the bare minimum the U.S. government should do for one of their own citizens, Max.
FOSTER: OK Hadas thank you. In Canada, an intense manhunt is underway after a mass stabbing police searching for two men after 10 people were killed and 15 others injured in an indigenous community and the surrounding area. Paula Newton joins us now with the latest on this and terrific incident in a very tight knit community.
PAULA NEWTON, CNN CORRESPONDENT: Absolutely Max, do you think this is already one of the worst mass killings in Canadian history. And as you said, these two suspects still at large, it's been more than 24 hours now, police asking that anyone who has any information come forward.
But this is just so complicated by the rule and more isolated areas where this occurred and the fact that the suspects could have by now traveled at thousands of kilometers or at least hundreds. What's been interesting here though, is that in about three and a half hour drive away in the capital of Saskatchewan and Regina, local police, there do believe they may have had a sighting of the suspects about 20 hours ago now and yet nothing since.
They are telling people of course, that the suspects are armed and dangerous. What is also puzzling here, though, Max is the fact that police say quite bluntly that some of the attacks were targeted, others seem to be random that goes to motive.
But also goes to - you know the incidents happening and why they happen and what could possibly give them clues as to the whereabouts of the suspects right now? Needless to say, law enforcement authorities across three provinces and also federal authorities bringing help to the region.
I want to read you now a statement from Justin Trudeau that he released yesterday evening, saying I am shocked and devastated by the horrific attacks today in James Smith Cree Nation and Weldon, Saskatchewan that claimed the lives of ten people.
And injured many more as Canadians we mourn with everyone affected by this tragic violence and with the people of Saskatchewan. You know Irish who hear though Max is how difficult it was to piece together the clues there are at least a dozen crime scenes perhaps many more.
It was hours before or police could really piece together how many victims there were? They believe there may still be victims out there that either chose not to get medical attention or got medical attention arrived in health clinics or hospitals, but still have not spoken to police.
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NEWTON: So we are expecting a police briefing hopefully in just three hours from now we'll be able to bring you more but right now, people on high alert and really still keeping locked windows and doors at this point in those communities because police have said they have no idea where the suspects might be headed Max.
FOSTER: OK, Paula back with you where you get more details. Thank you. We'll also have more on Britain's new Prime Minister after the break when I'm joined by Chairman of Northern Ireland Conservatives, that's next.
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FOSTER: Welcome back to our special coverage from London. On July 7th British MP Boris Johnson announced he was leaving office after a series of scandals. He is of course the Prime Minister currently two months on and the conservatives have chosen Liz Truss to replace him as head of the party and of the country.
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UNIDENTIFIED MALE: Rishi Sunak 60,399 Liz Truss 81,326. Therefore I give notice that Liz Truss is elected as the leader of the Conservative and Unionist Party.
(END VIDEO CLIP)
FOSTER: Liz Truss is a name that's very well known here in Westminster. She's a very experienced politician, but she's not necessarily known outside Westminster or indeed around the world. So Bianca Nobilo has a bit more on the woman who will be the next British Prime Minister.
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BIANCA NOBILO, CNN CORRESPONDENT (voice over): Britain has a new Prime Minister, an ambitious political chameleon.
TRUSS: I know that we will deliver. We will deliver. We will deliver.
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NOBILO (voice over): Liz Truss is unlikely ascendance complete. Her leadership campaign got off to a shaky start. She couldn't even find the door notoriously gaffe prone.
TRUSS: We import two thirds of our cheese. That is a disgrace.
NOBILO (voice over): Tactless about Britain's closest ally.
TRUSS: President Macron friend or foe. The jury's out.
NOBILO (voice over): And mocked by Russia's Foreign Minister.
UNIDENTIFIED MALE: It seems like we listen but don't hear.
NOBILO (voice over): The Former Foreign Secretary was widely considered to be less informed and less willing to be scrutinized than her rival Rishi Sunak. But that didn't stop her because she wasn't appealing to the wider British public.
One of two candidates selected by Tory lawmakers Truss was ultimately chosen by less than 1 percent of the British electorate a sliver of the conservative base older, whiter and more right wing than the average voter.
She played a blinder promising a hard line on immigration and tax cuts to a party drifting further to the right, channeling their hero Margaret Thatcher even dressing like her. Like half of Britain's Prime Ministers she studied here at Oxford University. But back then she was a liberal Democrat activist in favor of legalizing cannabis and abolishing the monarchy.
TRUSS: Abolish them, we've had enough.
NOBILO (voice over): Now she's the darling of the right wing of Britain's conservatives, the pro monarchy party of law and order quite the 180. And when it comes to Britain's biggest political question of the last decade, Brexit she's supported remaining in the UK. Only to reemerge as a born again, Brexit ear and the U turn continued before graduating in 1996. With a degree in politics, philosophy and economics, Liz Truss campaigned alongside Neil Fawcett for two years.
NEIL FAWCETT, LIBERAL DEMOCRAT COUNCILLOR AND FORMER TRUSS COLLEAGUE: She certainly always seemed to be very ambitious. Sometimes she thought her main aim was to impress people that she was always playing to the gallery. That she would say what needed to be said to win popularity amongst the people she was in front of at the time.
NOBILO (on camera): Do you feel like she does have substance?
FAWCETT: But I couldn't tell you what she actually believes.
NOBILO (voice over): Her supporters though see flexibility, independence of mind and boldness.
CHRIS SKIDMORE, BRITISH CONSERVATION MP: She doesn't take no for an answer. She said I've seen that as a minister myself in private. You know, she can be direct but she is also very warm. And I think that has endeared her to many MPs.
NOBILO (voice over): Truss inherits a nightmare war in Europe a biting cost of living crisis, the country braced for a winter of potential blackouts and fuel poverty. Britain's desperately hoping she'll leverage that ambition and adaptability to rise to the challenge. Bianca Nobilo, CNN, London.
(END VIDEOTAPE)
FOSTER: Join me Matthew Robinson, Chairman of Northern Ireland Conservatives and he supported Liz Truss in the race to number 10. You are in the room at the time. Was it an exciting moment when it got announced?
MATTHEW ROBINSON, CHAIRMAN, NORTHERN IRELAND CONSERVATIVES: Absolutely. It was incredible energy. I was there with colleagues from right across the United Kingdom. And I find that yes, at an early point in the campaign, Liz, as the Prime Minister's point person on the Northern Ireland protocol as Foreign Secretary really got the union and the importance of the Union.
We're a family of nations, Northern Ireland, Scotland, Wales, England, and probably one of the most important jobs of Prime Minister is to keep that Union together. Huge strains at the moment, especially with the collapse of the straw man executive and I got a real seriousness from Liz Truss.
But when she was in Belfast two weeks ago, and just a matter of half an hour ago, when we were with our party headquarters, that is an issue she takes really seriously and reestablishing the Stormont executive. And putting Northern Ireland right at the top of our priority list as part of our union she is something she's focused on.
FOSTER: We need to break down the protocol in layman's terms, a border basically down the Irish Sea, which you feel separates Northern Ireland from the rest of the United Kingdom and you want to get rid of that protocol or that border?
ROBINSON: What the UK government's put on the table in green lane, whereby goods coming from Great Britain to Northern Ireland, clearly for domestic consumption in Northern Ireland should not be subject to checks.
There's brought across effect across both the nationalist and Unionist community in Northern Ireland there are broad consensus that there can be fixes and solutions. But the fundamental issue here is it does not the protocol does not enjoy cross community support.
The Unionist community in Northern Ireland does not support the protocol that has a huge effect on the architecture, the Good Friday Agreement and the functioning of the Stormont executive. So, of course, it's something that the Prime Minister is going to have to deal with. Liz Truss knows the detail on this. As I said she was the Prime Minister's point person--
FOSTER: She was also part of a cabinet that agreed to the protocol and now many in Brussels in particular - U.S. in particular hugely frustrated that you're now reneging on what is the international treaty?
[09:35:00]
ROBINSON: The trade and cooperation agreement for the UK government was a hugely impressive FTA, probably one of the most substantial that Brussels ever signed with a third party. The protocol was a difficult pill within some for the Unionist community to swallow, but it helped get the BTCA over the line.
Now, there's plenty of fixes that we can make to the protocol doesn't necessarily mean scrapping the entirety of it. But on the serious issues like goods coming from GB to Northern Ireland, that pose no threat to the single market, those goods shouldn't be subject to checks. So the acidly, UK Government are not wholly unreasonable.
And I hope that the new administration new Prime Minister, the European Commission seizes that opportunity and comes and sits down with a Truss Administration.
FOSTER: It's not going to go down well, in the White House, is it because Joe Biden sees any sort of threat like this as a threat to the Good Friday Agreement and fundamentally peace on the island of Ireland?
ROBINSON: Peace on the Island of Ireland is rock solid. What we have now is a, a slightly turbulent political situation with both communities from a security standpoint, Northern Ireland is just as well placed as it was five years ago.
I'd say with respect to the Biden Administration, Northern Ireland is a complicated place. But I think if President Biden spent a little bit more time there and understood--
FOSTER: Identify as British and Irish. ROBINSON: Identify as British and Irish myself, I understand both the unionists and while I'm a Unionist, I understand the concerns of the nationalist community, but just to dismiss the legitimate concerns of the UK Government is short sighted from our American friends.
And I hope they see that ultimately, the Prime Minister's job is to defend the union and the integrity foreign nations. That is a pretty simple that that's a pretty simple element of the job description. Liz Truss will be as of tomorrow, the Prime Minister of the United Kingdom of Great Britain and Northern Ireland, that's a hugely important.
FOSTER: There are two things combining here because there's this apparent commitment to resolve the issue probably towards your line of thinking. At the same time, she also doesn't seem as beholden to the special relationship with the United States as Boris Johnson was? Is that the sense that you get she's, she's less inclined to do what the Americans want?
ROBINSON: Not at all. I think as Foreign Secretary Liz Truss demonstrated that she took our relationship with the Americans very seriously. As trade secretary, she led a couple of delegations over to the United States on a state by state level to try and secure some deals on that level. So no, I have no sense at all that the special relationship has any less of a priority under Liz Truss did under Boris Johnson.
The Americans are important allies for and something that Conservative and Unionist Party takes very seriously. Well, I've disagreements the Biden Administration, that's fine. But ultimately, the special relationship is rock solid.
FOSTER: OK, do what you know about her movements, if you had any Intel on whether she's going to quickly visit Ireland and well Dublin and Belfast very quickly off the back of her appointment?
ROBINSON: I have an expectation that very early in her premiership; we will expect to see Prime Minister Truss in Northern Ireland and in the Republic of Ireland to sit down with the relevant parties there. It's hugely important we need a devolved executive in Northern Ireland. The UK government's been a very sensible bill before Parliament. It's time the Unionist Party, especially the Democratic Unionist Party, get back to the table.
FOSTER: So this is a big moment for you this new phase of the government?
ROBINSON: It's not just a big moment for us. It's a big moment for Northern Ireland, UK Government, as doing all it can to finally get Stormont back up and running. It's doing everything it can in the absence of that as well for emergency funds. But we need a devolved government something Liz Truss says.
FOSTER: We're still lucky a lot of detail on her policy. She said she didn't want to go into it before she was voted in. You are just done for meeting at the Conservative Party headquarters when she spoke to the team. Any sort of intelligent gives us from that? ROBINSON: I said the Prime Minister-elect opened her remarks Conservative and Unionist colleagues, I had a brief conversation with there and I got a serious sense that she does not at all overlook the importance of the Unionist element of our party. The cabinet positions that will be filled in over the next 24 hours in addition to party leadership I'll leave that to the party leader to relate the particulars about
FOSTER: These hecklers just so you know are familiar Anti Tory campaign has nothing to do with us. They show a lot of things. OK, Matthew, thank you very much indeed for joining us. He's the Chairman of North Ireland Conservatives. Thank you for joining us.
After the break the UK coming face to face with an energy catastrophe as all this goes on. Prices are soaring how the new prime minister plans to tackle the cost of living crisis next?
[09:40:00]
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FOSTER: Welcome back! As energy bills continue to soar across the UK and Europe, businesses and households are warning they won't make it through the winter without the help of the government. Annual inflation is running above 10 percent for the first time since 1982 and it could get worse.
The Bank of England anticipates that inflation will jump to 13 percent as the energy crisis intensifies. Citigroup estimates it could pick up 18 percent in early 2023. So what is Liz Truss's plan to deal with costs ahead of the winter?
Joining me now is Mike Brewer, Deputy Chief Executive and Chief Economist of the Resolution Foundation, we'd love to answer this but we can't really can us because she's not great on detail?
MIKE BREWER, DEPUTY CHIEF EXECUTIVE AND CHIEF ECONOMIST OF THE RESOLUTION FOUNDATION: That's right; Liz Truss made it clear at the start of her campaign that she wanted to cut taxes. She's made a big pledge about that to big play to her electorate, essentially but we all know that a tax cut by it can't solve a cost of living crisis. So there's got to be more coming.
FOSTER: So that's money directly to households or to the energy companies you think?
BREWER: Well, those are our two choices.
FOSTER: Yes.
BREWER: Currently, the government's giving money directly to households.
FOSTER: Yes.
BREWER: I think the scale of the energy price that's coming now means that that strategy will have to change.
FOSTER: In terms of, you know amounts and how it's paid? I mean, the energy companies are saying they don't want you know, guarantees for loans, just explain this, they'd rather have the cash?
BREWER: Well, there are some complicated discussions going on about various ways to keep energy prices down. One suggestion is that the governments effectively underwrite loans paid to inmate's energy companies so that they can afford to make a loss on selling households cheap energy.
The other alternative is the government just gives money directly to energy supply companies to subsidize them selling energy more cheaply.
FOSTER: Early on in the campaign she wasn't talking about giveaways was she? She was talking much more about tax cuts. But towards the end of the campaign, we've obviously had a bit more balanced there?
BREWER: Balance or perhaps realism that.
FOSTER: She has to pay out.
BREWER: Now as the summer has gone on of course, the prognosis for energy bills has got worse. And I think it's clear now that with energy bills about to double and then set to go more up even higher in January. There's just no way can that tax cuts alone do anything for those who are going to struggle the most this winter.
FOSTER: So countries like Germany, literally putting tens of billions of Euros into the system effectively. What sort of figures do you expect her to have to commit to?
BREWER: I think it could be similar to what we saw in the pandemic with the furlough scheme we had in UK and the cell phone government grants that that's just below hundred billion pounds. If the government was serious about protecting households and businesses from high energy for the next year it could easily be looking at nearly 100 billion pounds.
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FOSTER: How do you combine that with tax cuts?
BREWER: Yes, That's very hard.
FOSTER: Because that's Ritchie's point, wasn't it?
BREWER: Absolutely. Yes. So I mean, the new chancellor, the Prime Minister have got this incredibly tough tightrope between not stoking up the back - not annoying, the Bank of England, the Bank of England won't want to see us spending splurge going on.
Because they think we're in an inflationary spiral. But they have got to protect households from the from the cost of living crisis, this winter. And then in the long run, if she wants to Liz Truss, would like to cut taxes and also see the economy grow more, which will take tax reforms and other supply side reforms.
FOSTER: Are you worried about her economics, in the same way that Rishi Sunak was worried and many economists?
BREWER: We haven't heard enough yet to decide whether we're worried or delighted. It's very clear that tax cuts alone will not solve the problem. The UK has had a 15 or so years of relative stagnation. So we're looking forward to seeing what is her strategy to deal with that?
FOSTER: She's talking about tax cuts to the highest earners, isn't she? And not afraid of that either or admitting that she was did that in an interview yesterday, she said that sort of when we talk about income, redistribution, people being too simplistic. Do you think she can give tax cuts to higher earners and not upset the system for the lower earners?
BREWER: Well, I think we definitely should talk about distributional issues in the UK.
FOSTER: Yes.
BREWER: If we look across comparable rich countries, all the ones that are richer than us are more equal apart for the United States. So we definitely could do better solving inequality in the UK. I think will be important is what is this? What is the impact of a package of measures that will actually undoubtedly announce?
If it was just a tax cut alone and then people would say, yes, you're giving too much to the better of households not doing enough to support those that need it most. But as part of the package, there's nothing wrong with cutting taxes for the rich.
FOSTER: Everyone's saying recession is inevitable. You're agreeing with that, presumably and then it becomes a question of how long that recession will last and how she can limit the damage it does? From what you've heard so far, do you have faith in her and the team that she might be able to build up?
BREWER: Well, it's been very clear the last couple of weeks that she and her team are getting really serious about the winter energy price crisis and that are the most important top of her intro, the most important thing to deal with this winter.
How the recession plays out is really due to this complicated interaction between what the Treasury does and how the Bank of England interprets it, and it's slightly out of her control. But I'm confident that they definitely know the scale of a task is waiting them.
FOSTER: 18 percent inflation, you know, that's the figure - put on it. Do you think that's realistic?
BREWER: Well, it's a forecast of what inflation would jump to, if the government did nothing to intervene. So I think it just highlights how inevitable is the government will intervene, and probably to do something to cap that price of energy further than often have said already,
FOSTER: In terms of what we know about her on the international stage. She criticized the President of France and her during the campaign that created some tension there. She's not necessarily as close to America as Boris Johnson was if we look at the love of her language.
Do you think that could be a benefit or a big negative for the UK in terms of the global economy and what we get out of it?
BREWER: Well, I think as months of being Foreign Secretary will make her very aware of the perils and pitfalls of international diplomacy and so I have no worry there.
FOSTER: OK. Thank you very much, Mike Brewer for joining us from the Resolution Foundation. Do stay with CNN more on the global implications of Britain's new Prime Minister next. She is the Foreign Secretary she's known on the world stage but we need to know more about her policies as leader.
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[09:50:00]
FOSTER: Welcome back to Westminster in London! And a momentous day in British politics Liz Truss may not be a name familiar to most people around the world, but she will become the next British Prime Minister, replacing Boris Johnson. Who's pretty much known by everyone following a vote by party members?
She's a low tax evangelist, who models herself on Margaret Thatcher. Joining me now is Richard Johnson. He's a Politics Lecturer at Queen Mary University in London. How else Richard, would you describe her for people who've never even heard of her?
RICHARD JOHNSON, LECTURER, QUEEN MARY UNIVERSITY OF LONDON: She's a much more ideological figure than Boris Johnson. She's also I think, a less well established the former, I don't think charisma matches that of Boris Johnson, I thought her delivery today was pretty wooden.
She also lacks some of the mandate that Johnson had within the Conservative Party. And what I mean by that is, if she wasn't the choice of Conservative MPs, and actually the size of her victory, although substantial in terms of the historic record, was one of the smallest victories among the membership of the Conservative Party?
So, you know, I think she's already she has some weaknesses already that she's coming in with that she's going to have to overcome and prove herself in the months and years to come.
FOSTER: By giving us detail, right, she needs to give detail on the sort of actions you need to talk about that she's going to act upon, particularly the energy crisis. She's saying there'll be announcement by the end of the week, but her big opportunity to lay out her stall, as it were, will be tomorrow into late afternoon, we expect to speak in Downing Street as she enters number 10 for the first time as Prime Minister. JOHNSON: Absolutely. This leadership contest has been going on, you know, we spoke two months ago, as Boris Johnson was on his way out, we really aren't that much the wiser as to what the program of the government is going to be.
There have been a lot of debates and - that Rishi Sunak convinced trusted had over the last few weeks, but they've been pretty light on detail. We know kind of the big picture of things that distrust believes in low, low taxes.
She's not a fan of some of the green regulation that she associates, the previous Prime Minister with this going to be some continuity on things like Ukraine. But in terms of what the concrete details of her package on energy how she's going to resolve the situation in Northern Ireland?
She has held her cards close to her chest, perhaps she has been managing expectations. And perhaps in the next week or two, we'll see a flurry of announcements that will sort of make us forget that we didn't have the detail. But at the moment, it's still things are very fuzzy coming out of this campaign.
FOSTER: She also got through on a very small vote of tens of thousands of people and she was speaking to a very specific group of conservatives and telling them what they wanted to hear frankly. It's going to be a much bigger challenge, isn't it in a general election, which she does plan to fight in a couple of years, and convincing the whole of society to support which for many our niche use?
JOHNSON: I'll tell you, I think if there was another candidate in his conservative leadership contest, I think he could have blown Liz Truss out of the water and that was Boris Johnson.
I think Boris Johnson been on the ballot, I think the conservative membership not the MPs, but the membership probably would have voted for him.
And I think that her main credential for getting elected in this - in the membership contest was that she remained loyal to Boris Johnson when it was perceived that Rishi Sunak did not because he resigned and called for Boris Johnson to resign.
So that's, you know, that's a very different story from the one that she's now going to have to put herself forward to the country which has a much lower opinion of Boris Johnson. Boris Johnson's approval rating has been low for many months now. She can't rely on that linkage and she's you know she's got to really address the crisis that's gripping this country.
[09:55:00]
JOHNSON: If she can, you know, she can prove herself because expectations are low, but it's a huge crisis. And you know, she could be overwhelmed by events and that's the risk that she faces.
FOSTER: OK, Richard Johnson, Queen Mary University, thank you very much indeed! Being Prime Minister is hard at any time but this has to be one of the biggest, most challenging times to become Prime Minister huge test for Liz Truss.
And we still know so little about what she plans to achieve in terms of detail in her first year? But we're going to get a sense of that tomorrow with a big speech in Downing Street. But the news today is that the next British Prime Minister, will be the current Foreign Secretary Liz Truss.
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