79. Nadhim Zahawi: Iraq, Conservatism, and why he backed Boris Johnson

13 Jun 2024 · 49 min

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Podcast Notes: The Rest Is Politics - Episode 79: Nadhim Zahawi: Iraq, Conservatism, and Why He Backed Boris Johnson

Episode Overview In this episode of *The Rest Is Politics*, hosts Alastair Campbell and Rory Stewart engage with Nadhim Zahawi, a prominent figure in UK politics and former Chancellor of the Exchequer. The discussion delves into Zahawi's early life in Iraq, his political journey, and his perspectives on current Conservative Party challenges.

Key Themes

  • Zahawi's Background: His escape from Saddam Hussein's Iraq and subsequent life in the UK.
  • Political Ideology: The factors that led him to align with Conservative politics.
  • Support for Boris Johnson: Insights into his backing of Johnson amid controversies.
  • Current Political Landscape: Analysis of the Conservative Party's standing in the context of upcoming elections.

Detailed Notes

Introduction

  • Host Backgrounds: Campbell and Stewart, both experienced politicians, share their history with Zahawi, emphasizing their camaraderie and shared experiences.
  • Zahawi's Life Story: Born in Iraq in 1967, Zahawi's family had political and economic ties to the UK, which influenced their emigration.

Early Life and Emigration

  • Childhood in Iraq: Zahawi describes the political landscape during his early years, particularly the rise of Saddam Hussein.
  • Family's Escape: His father, a businessman, received warnings about impending danger, leading to their flight to the UK.

Political Journey

  • Interest in Politics: Zahawi initially had no intention of entering politics; his involvement was spurred by a confrontational encounter with a leftist during university.
  • Entry into Conservative Politics: His interest was piqued by connections with conservative individuals at university, culminating in a commitment to Conservative ideals.

Support for Boris Johnson

  • Initial Reservations: Zahawi expressed skepticism about Johnson's capabilities early on but later became a supporter.
  • Pandemic Management: He highlights Johnson's role in vaccine deployment, portraying him as competent in a crisis, despite broader criticisms of his leadership style.
  • Disagreements on Character: Stewart and Campbell confront Zahawi on Johnson's perceived dishonesty, with Zahawi defending his experience of working with him.

Current Political Landscape

  • Election Predictions: Zahawi acknowledges the challenges the Conservative Party faces, especially being significantly behind in polls.
  • Concerns About Governance: He raises issues about the quality of politicians today, emphasizing a lack of real-world experience among many in Parliament.
  • Long-Term Economic Concerns: Zahawi stresses the importance of addressing economic challenges and competitive positioning globally.

Reflections on Governance

  • Lessons Learned as Minister: Zahawi articulates insights on transparency and the need for talented individuals from outside politics to contribute effectively to governance.
  • Proposed Reforms: He emphasizes a desire for reforms that would allow for quicker integration of skilled professionals into government roles.

Conclusion

  • Final Thoughts: Campbell and Stewart express mixed feelings about Zahawi's loyalty and perspectives, particularly regarding his support for Johnson.
  • Future Topics: The hosts hint at future discussions on Iraq and the potential lessons from Zahawi's experiences.

Key Takeaways

  • Influence of Background: Zahawi's story reflects the profound impact of personal history on political views and career trajectory.
  • Complexity of Political Support: The dialogue illustrates the nuanced reasons behind supporting controversial leaders.
  • Political Landscape Challenges: The episode underscores the pressing issues facing the Conservative Party and the broader political environment in the UK.

Additional Information

  • Podcast Subscription: Listeners are encouraged to subscribe for more exclusive content and insights.
  • Social Media Handles:
  • Instagram: [@restispolitics](https://www.instagram.com/restispolitics)
  • Twitter: [@RestIsPolitics](https://twitter.com/RestIsPolitics)

*This episode highlights the intersection of personal history and political ideology, as well as the ongoing debates about leadership and governance in contemporary British politics.*

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Transcript

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1:39Welcome to The Rest is Politics with me, Rory Stewart. And me, Alistair Campbell. And today we have with us Nadim Zahawi. Nadim is a friend of mine who joined politics with me in 2010. We rebelled together on vote in the House of Lords and found ourselves left on the back benches together. We travelled together to Iraq after ISIS had taken over, created this caliphate stretching across the Iraqi Syria border as mini envoys for David Cameron. and we went and met the Iraqi government and the Kurdish government at the time. And we've remained in touch a great deal since. He is somebody with extraordinary backstory.

2:20He's actually been a theme for a lot of the politicians we've interviewed. I feel actually increasingly sorry for politicians, some of whom, you know, like me, have pretty boring middle-class backgrounds because the world now is just dominated by people with extraordinary stories. But his life takes us from a childhood in Iraq, arriving in the UK aged 11 unable to speak English, settling down, developing a deep romantic affection for Britain, becoming interested in conservative politics, a slight kind of penchant for people who I think are slightly roguish figures in British politics. We can get to Geoffrey Archer and Boris Johnson.

2:56We can get to that a bit later and what he thinks they were and what attracts him to them. Set up a very successful company, YouGov, a polling company, which again, we should touch on a little bit because this is the rest is politics. And, you know, nothing's more central to modern politics than the question of polling. Joined politics, as I said, with me in 2010. Rebelle was left on the back benches. And then his career took off belatedly, initially as a junior minister, then as a cabinet minister, then briefly as chancellor of the Exchequer for a tiny, tiny period before the whole thing kind of blew up again.

3:27So he's seen every bit in, I guess, 14 years of politics. He's seen backbench exclusion. He's seen massive promotion. He's seen getting the keys to number 11. He's had huge challenges in terms of media scandals. He's had great moments of affection and success in some of his ministerial jobs. So there's many, many things to get into. And we're very grateful that you've come and joined us. Thank you for having me. That was the longest intro we've ever done. Told the whole story there, Rory. Can we start with Iraq? Yes. I was thinking last night, reading up on you, that Iraq clearly plays a very, very significant part in your life, as it does in mine, but in very, very different ways.

4:04Although, to interrupt, he's sympathetic towards you. No, I know. You're on the same side in this, I think. Well, we're on the same side in that I think we both had very similar views about the reality of Saddam Hussein. Indeed. But just tell us about that childhood, what Iraq was like, why you left, and what your first impressions of Britain were. So I was 10 years old when I sort of began to understand what was happening politically. Saddam was then deputy to Ahmed Hassan al-Bakr, who was then sort of the new Ba 'athist president. And I'm being very mean because you're just beginning, but just to bring in listeners a little bit more, you're born in 1967.

4:36Yeah. And you stay in Iraq, I guess, till 1978? Yeah, 78, 79. 78, 79. So this is a country that had been a British protectorate. And then in the 1950s, the king of Iraq was killed in a sort of revolution. Brutally. Brutally killed. Revolutionary government takes over. And by the time you are a child, the Ba 'ath Party has taken over. And this very young man, Saddam Hussein, is the vice president, but is very much the power behind the throne. You're living in Baghdad. And you're from a family which maybe in some ways would not be wealthy among British standards, but also is quite distinguished.

5:18You had a grandfather who'd been the governor of the central bank. So you're part of the sort of establishment of Iraq and presumably have seen this very odd transition through your grandfather from Britain to monarchy to Bath. And now this guy who's emerging as a dictator. The bit that was missing in my knowledge is my grandfather passed away at the age of 52. We have a history of hypertension in the family and high blood pressure. So before I was born, but obviously I lived the stories of that time in Iraq when actually things were moving in the right direction rather than the wrong direction.

5:55And right direction, this was a society famous for its education, for its books. The cradle of civilization for, as you say, for culture, books, not just in Baghdad, but in the Kurdish areas in Soleimaniya and Bill and elsewhere. And then you have a series of brutal revolutions that end up with the Ba 'ath Party taking control. Saddam was a thuggish character. And by the time he came to power, they had pretty much effectively destroyed any other political movement, whether it's the sort of the socialists or the monarchists, pretty much gone. And I was sort of probably too young to understand the full implications of what was about to happen.

6:36But luckily had a father who absolutely got it. One of the few Iraqis in those days that absolutely got it. He happened to be Kurdish, married to my mother, who's actually from originally from Basra. And he was simply trying to keep his head down, be a businessman, rather than a political activist in the way his father was, my grandfather, but didn't want to join the party. and in Iraq and this is the bit that actually then we can talk about sort of what happened you know post the removal of Saddam and the mistakes we made Alistair and I are probably on the same page that you know Saddam needed removing I think where where I would differ is the consequence of what happened afterwards the lack of planning and the lack of pushback certainly from us as in the British government on the Americas to say well hold on a second you know what are we going to do the next day and can you show us the plan type of thing just wonder why did your father choose Britain.

7:31And I guess my other question is, why did you become a conservative? So my father had deep links to the United Kingdom. In fact, when my grandfather was busy being governor of the central bank and then becoming trade and industry minister, and actually, I think he was interim oil minister when OPEC was set up, he sent my father to boarding school in England for a short period of time. And that was the link. So your dad spoke English. So my dad spoke reasonably good English, but obviously had gone back to the Middle East again. And that sort of link with the United Kingdom and he had agencies from British businesses in Iraq, which was a treacherous path to tread anyway, because Saddam had passed legislation that if you were found to be taking commissions in the private sector as a businessman, that is punishable by hanging in Iraq.

8:12So it was the natural place for him to come because he had a re-entry visa to the UK because of his history and because he did business with British companies. But also it was a pretty easy target to come after because the easiest accusation to make of anyone is that they are a British agent. You know, if they happen to represent any British brand or any British company. And what happened is that one of his employees in his business, who was a member of the Bath Party, had written a report because he was disgruntled. He hadn't received a promotion or a salary increase that my father was a British agent.

8:50And fortuitously for him, on my mother's side, her sister was married to someone who was actually quite high ranking in the party long past now, who clearly got or was in receipt of the message that they're going to come for my father. And so we had about 24 hours warning over lunch at my aunt's home where they took my dad aside and said, look, they're going to come for you tomorrow. So you try and get out. So you left and then you followed. Correct. Exactly right. And he deliberately set up a decoy. So he called his office and said, I'm driving up north to the Kurdish areas because he had a project there.

9:27And instead he went to Baghdad International Airport and got on the Swiss air flight out of Baghdad. And why did you become a Tory? So completely accidental. And I'll tell you for why. So I had zero interest in politics growing up in school in England. I was much more interested in wanting to become a show jumper. You were riding horses. I was. Yeah, very much so. And when I got to university, I got to University College London and I read chemical engineering, Torrington Place, across the road into the University of London Union, Yulu, as it's referred to. And fresh as weak, I'm walking into Yulu and there's a big bloke outside.

10:06And I was about a third of the size. I was quite slim when I was at uni with goofy teeth and a sort of full head of hair. And this bloke was handing out the Socialist Workers Party magazine. And all I did, and I promise you this, all I did was politely say, no, thank you. not because I knew anything about it. I just had no interest in politics. At which point, this guy decided he was going to literally physically attack me. I thought I was going to get beaten up because he was so angry with me for not taking his magazine, especially someone of my colour, which really offended me. And I thought my way of getting back at him was to go and find out what the other party thinks.

10:39Well, that should have been the Labour Party. They're real, and it was the Labour Party. I walked around Freshers' Fair. There was a little trestle table with the Conservative Collegiate Forum. You said, hello, Dominic. Hello, Tobias. I went and had a chat and the student behind the desk happened to be captain of the show jumping team. And that was a good start. Then I began to understand about freedom and opportunity. And those two words have defined my life in many ways. Just come back to this little boy. So you speak Arabic and you speak Kurdish? I speak Arabic better than I speak Kurdish in many ways, because I was born in Baghdad and having a mother from Basra.

11:17but my Arabic was much more polished. I understand Kurdish. I'm reluctant to speak. I sound like a six-year-old, but I speak fluent Arabic. I'm interested in when somebody who speaks three languages and two languages very well might see the world in a slightly different way from the way in which other politicians do. So let's take the great cliche. And so what's this phrase that Rishi keeps producing? Clear plan, bold action. Okay, so how would you say a clear plan, bold action in Arabic? So, khotajaria amelwade. Okay, now imagine now for a second and Saddam Hussein or an Arab politician saying that, does it sound different to the way that it sounds to an English audience?

11:53Is there a sense in which moving into a different language, a different culture gives a completely different resonance and an echo? Yeah, I mean, it does. Obviously, Khotajariya means a brave plan. So it's a sense of machismo. Correct. Yeah. Almost inescapable in Arabic culture. And Jarrah is bravery in a much more sort of animated way. And Amalwada is that you have a clear work rather than plan, if you know what I mean. pretty good now nadine talk of bravery yeah thank you for being here because i have it on very good authority as does rory that tory high command has basically said they don't want any of their current big hitters coming on this podcast and heaven knows why because we're very nice to our guests as you can see i'm surprised well well that we're nice or that no i'm surprised well i think it's not more of my colleagues are coming i think it's a terrible mistake yeah but i wonder whether it's because your party has always been a little bit obsessed with me and i just want to play you a very short clip.

12:48I know what you're going to play. And I want to find out what was going on inside Dowdy Street while this was happening. The people, by the way, who are egging us on to divide and to turn on one another are people like Alistair Campbell. And wherever Alistair Campbell is, you want to be on the opposite side of the argument in my view. The people who are egging us on to get rid of our leader and have this blood blessing in battle are people like Alistair Campbell. I like to say to you, wherever Alistair Campbell is, any good conservative should be on the other side of the argument. Okay. The people who are egging us on to turn on each other, to form a circular firing squad, are people like Alistair Campbell.

13:26I can tell you, wherever Alistair Campbell is, no Conservatives should be in the same place. The people egging us on to turn on one another are people like Alistair Campbell. And in my view, wherever Alistair Campbell is, any Conservative should be on the other side of the argument. Mr. Sir Harwin, we're talking about the resignation of senior conservatives. It is frankly insulting for you to suggest that this is a crisis created by your political opponents. Look at who's egging us on to keep attacking one another and to do all this bloodletting. People like Alistair Campbell. And I think where Alistair Campbell is at, any conservative should be on the other side of that argument, in my view.

14:02What was going on? I tell you what was going on. I'm a former thing. No, you're not. First of all, you are a communication genius, right? You have many flaws, but that is not one of them. And you and I both know that. You are a communication genius. And you have clearly, as I'm sitting here in probably the most successful podcast in the country, have adapted to new media in an incredible way. My colleagues, certainly the 2010 intake, didn't have the privilege that Rory and I had, which is years of being in Parliament with the wiser heads, learning, listening, engaging. They'd been locked down because of the pandemic.

14:42This is the 2019 intake. 2019 intake. And therefore, in many ways, easier spooked if there is a social media storm than where the real world is. Let me give you an example. When I was Chancellor of the Duchy of Lancaster, second day in the job, we got the news that Her Late Majesty had passed. In the Cabinet Office, we've got this whole communication floor, giant screens, which you probably are both familiar with. And if you believed Twitter that day, you'd think half the nation was Republican. His Majesty gives his first address to the nation the next day, 98 % approval rating. So Twitter was not the country, clearly.

15:18The reason I was making that point is you were so smart at using social media to drive the whole storm around number 10 better than anyone else so i was giving you as an example of the ability to spook my colleagues into a place where the herd just then stampeded which was my that's what i said to the to boris when i i went to see him say i'm afraid you gotta go now because the herd is stampeding because i think this is a the one moment where despite my immense affection and admiration for you I think we've always a bit differed I think there's a bit of you if I was being cheeky that has a sort of actually Alistair has a bit of this too which is a sort of slight sort of affection for slightly roguish figures in his case he's sort of fond of Alan Clarke and people like this in your case you have a sort of soft spot for Geoffrey Archer and ultimately Boris Johnson I never got it I mean I remember you ran for leadership I ran for leadership and I remember trying to reach out to you when you dropped out and said, you know, come in behind me.

16:20There's a different vision. Whatever you do, don't get behind Boris Johnson. And we'd had private conversations before where you'd explained why, having backed Boris the last time, you weren't backing him again. You had serious reservations about this guy and where he was going. And then in the end, you sort of got on board. And I couldn't understand it because I'd worked very close with him. I'd been the minister of state in the Foreign Office when he was the Foreign Secretary. I'd seen day in, day out, just how bad he was at the job. I mean, he just couldn't concentrate. He couldn't take in any information.

16:50He'd ask, he'd say, you know, Rory, go and sort out Libya. Libya is a bite-sized British problem. And I'd try to come back with any plan and he'd lose some attention immediately. He'd wander off and, you know, we'd do a deal with the Kenyan government and then he'd come back and he'd turn it on and say, et cetera, I don't need to tell you all the problems. So what is it that led you and so many colleagues to get him behind this guy? Because I actually think the reason we're about to lose this election is partly him and Liz Truss, that this decision to bring these people in has come back to bite us.

17:17So what is it that made you feel you wanted to get behind him? Well, let me try and answer the question in my experience of him as a boss. So when he called me to say, I'd like you to take on the vaccine deployment role. Of course, I said yes, but I said on one condition. And he said, what's that? What's that? I said, I need to speak with your authority. And what I mean by that is I need to be able to get access to you in minutes and hours, not days or weeks. And he said, you've got it. And I have to tell you, and I worked as a junior minister under Theresa May. And then, of course, I did a little bit of work for Cameron on apprenticeships early on in my career.

18:00the apprenticeship czar as he called it but his ability to make decisions when you have his attention and he's focused i thought was incredibly impressive he was brave but also contrary to what actually most people think he was on top of the detail we would brief him every week on the numbers on the vaccine program and he would literally say can we just go back to last week something to tell me this this is this is so at odds with everything that everybody one speaks to about him says and that everything that one knows people like me have known him for 40 odd years knows to be true or indeed what came out in the covid inquiry where simon case is sitting there sharing whatsapp's messages with his head of comms with dominic cummings saying this guy is a shopping trolley lurching around he said one thing today he's changed his mind tomorrow and look as i say I'm probably going to say something that people find extraordinary, but he could have been.

18:58I wasn't there. I wasn't around the table in the early days of the pandemic. But when we got to vaccine deployment, he was incredibly good to work for because he actually empowered me to cut through some of the bureaucracy where I needed to. I can give you many examples where we did that. And he was literally on top of the numbers in a way that I found surprising. But Ben, that's just, that's like saying the bus driver knows how to drive a bus. No, that's not fair. That's just the job. That's the job. That's not, no, that's not true because there are... If you're the prime minister in the middle of a pandemic, to say that he knew the numbers, and when often we saw that he didn't...

19:36But also to be able to back his minister to say, let me give you an example. So I took on the job and every morning we had this fantastic piece of software from Palantir where I can see exactly who's been vaccinated the day before. And I went to the team at the NHS, Simon Stevens, and said, look, we've got to publish daily data because you're expecting me to be on television every day. I can't just ask the nation to trust me on this and we're going to only give them fortnightly data or weekly data. We have to do daily data. And initially, the pushback from the NHS was like, we can't do that. We're the NHS.

20:14The data has to be perfect. This data will need cleansing. It takes days to do that. It might take resource away from something else. But I see it every morning. Why can't we share it? And actually, one of the lessons of the pandemic, and I hope it will come out through the inquiry, is transparency helps you reform complex systems. And I think it's one of the lessons I hope we learn going forward, that by treating the nation as adults, saying, look, here are the numbers. Within those numbers, you will see some stuff that the red tops will be shock horror. For example, very low uptake of vaccines in post goes around Tottenham in North London, but at least it allows us to focus on those challenges and then fix them.

20:51Boris backed me on that, because initially the pushback was, no, no, we can't do that. And he said, hold on a second, but Nadim's right on this. Let's get this stuff out there. People need to see it, because they're hurting, they're locked in. I get all that, but I mean, there is a real problem with this, because I, as I say, I've known him for a very, very long time. And I think we have a real problem in our politics. if people who are liars, people who really have difficulty knowing what is true and what is not true and not really caring about the difference, I think unless they're expelled for good from public office, I think we're in real danger as a democracy.

21:30And you cannot tell me hand on heart that Johnson is somebody who's not a deeply untruthful person. He was exposed as such during the pandemic, ultimately over parties and then over the whole pincher thing. But he's not somebody who tells the truth. That's unforgivable as a prime minister. I can only speak from my own experience. You don't think he's untruthful? And every time we talked about things that we need to tell the country, he would never stand in the way and say, no, no, no, for political advantage. Look, you and I are probably in the same place on the removal of Saddam. But I think you've been attacked about the sexed up dossier.

22:08I think that's why I take this seriously. Whether that's deliberate or otherwise, those are the perceptions, right? And perception can become reality. I just think my experience of the man in the way he backed me. And then when he made me say, say, for education, when I took serious challenges to him about how the department was run, what I wanted to do with the department, he was good to his word. I think this is why I take it so seriously, because he was, at the time of the Iraq situation, Boris Johnson, Andrew Gilligan, they were part of this right-wing sort of cabal constantly trying to portray us as liars over Iraq.

22:45when I knew that we weren't. You can argue whether the policy was right or wrong, whether we presented it wrongly or rightly, well or badly, but I know we weren't lying. So we get labeled with this liar stuff and yet I don't think anybody who's seen Boris Johnson through his life as a journalist or as a politician can truly hand on heart say, the guy's not a liar. And that's why when you said recently, for example, you think that you made a mistake in getting rid of him, I think it would be terrible for your party if he came back. Truly terrible. I think my party needs to, at the moment, focus on this general election.

23:18And flirting with ideas of leadership is a terrible error, in my view. The point I was making in that interview for the Sunday Times, I think it was, was when asked, was it an error at the time to remove Boris? I still contend it was an error because I actually think in many ways he'd learned from the early mistakes of the pandemic. He'd come through that. The vaccine deployment actually allowed him, in my view, to mature into the role of prime minister. Even on that, though, he couldn't resist lying. It's all about Brexit benefits and all this. He didn't need to do that. And now you have a situation where he's saying that Trump's trial is rigged.

23:59There's something here which I think is very interesting. you're a profoundly loyal person right you have these heroes you throw yourself behind jeffrey arch you've now chosen to throw yourself behind boris johnson what is i mean it's odd i mean i understand i admire you for your loyalty but tell us a little bit about this loyalty why is it that you choose these impossible very unpopular very peculiar characters and then decide you're going to attach yourself to them and defend them to the hilt there are no superhumans in politics government in business, right? Everybody's deeply flawed, in my view.

24:33And I just look at how people have treated me. You mentioned Geoffrey Archer. He knows that he has some deep flaws, but also some really great attributes of identifying talent. When he wanted to run for mayor of London, he literally picked up a load of young conservatives and around the table were Tobias Selwood, Robert Halfon, Sajid Javid. We were all literally kids, right, in politics. I was a local councillor in Wandsworth, I think, at the time. An incredible ability to identify talent and back it, being completely colourblind, when actually my party at that time was much less welcoming, let's put it that way, for people of my background.

25:16We've just been through it. With Boris, it was my experience of how he backed me. You spoke about it at the outset. You and I, our face just didn't fit with the Cameroon team for different reasons, very different reasons. But they kept us on the back benches for the best part of six, seven, eight years. And so I admire that. I admire people who will actually, you know what, there's a job to do here. I'm going to bring the best people in to do this job. They may not be my clique, but they're good people. But it's interesting, it was Geoffrey Archer, whom younger listeners may not know, but most of our listeners will know is best known as an amazing multi-million pound best-selling author but also Tory in the House of Lords so there's Johnson hounded out of office for lying Jeffrey Archie who goes to jail for for perjury I mean I'm so detecting that you don't have a problem with people who are not too familiar with the truth no no no that's that's not I just think I don't know whether maybe it's the breaks I've been given and maybe a bit of it is my own sort of flaw the imposter syndrome that i have that i sort of you know when i first joined the cabinet i said i'm thinking you know how did i get here what do i know and then you realize actually you're quite good at fixing some of these things within your department or government and you get rewarded for it so i again i go back and say to you i think there are no superhumans and i'd much rather work for someone who may have flaws but will get the job done you know worry about outcomes rather than just inputs than someone who has the sort of the halo of you look at Paula Vennell's and the post office stuff which I was obviously on the back benches and in the select committee on starting the drama indeed but there's a bit of me that gets slightly wound up by people who sort of live a life that looks perfect but actually never get anything really seriously done and I just instinctively are much more attracted to the people who actually want to get stuff done, but may be flawed.

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28:27However you choose to do it. because when you're not worried about doing things the right way you're free to discover your way and that's what running is all about run your way at newbalance.com slash running

28:53let's push forward then and let's look at policy where do you think britain's going the next 10 years. What are the fundamental challenges? What would you do if you were prime minister to turn the situation around? Where are we? Where should we go? I worry. I genuinely worry. You know, I was a Brexiteer and 60 seconds on that. The reason I was a Brexiteer is because I initially wanted us to stay in and reform from within. I had a wonderful dinner with Herr Schäuble, who was then the finance minister of Germany, where we ended up in the same place. But his solution was more Europe, not less Europe.

29:24Because once you set up a sovereign with the single currency. You know, we have the most successful transfer union on earth because the Bank of England stands behind sterling. We transfer wealth from London, the south to less well-off parts of England to Scotland, Wales and Northern Ireland. But we have emotionally bought into that because we've had civil war, war with the Scots. But we accept the fact that we pay our taxes and transfer wealth. Will the German people accept transferring wealth to the less well-off parts of Europe for the next hundred years? I think they will if their chancellor is able to tell them that but we control the budgets of those countries in the way they did with greece and ireland where they were forced to swallow a pretty bitter pill now in all of that once you accept that the british people never accept someone in europe setting their budgets for them then we should come out that was my hypothesis but it's been a disaster well no and i tell you what i think worries me is we are now a mid-sized economy the g7 is not our competition three of the g7 are in Europe.

30:23I listened to Macron out there when he had his investor conference saying, look, you know, if you want to come and take advantage of a market of 450 million people, then, you know, yeah, of course we'd be competitive, but we don't have to be as competitive as some other countries on taxation. The fourth is the US in the G7, which is a continental economy that is extraordinary because its ability, because it has devolved taxation to the states, that competition between California and Florida makes the economy so dynamic. We need to be much more competitive and I don't think we're in that space yet no politician is talking about actually we need to reform whether it's health or welfare and look at what is this really costing us versus what is coming into the treasury you look at you know where the national debt is versus the real national debt if you take into the unfunded you know pension liabilities of the civil service we will be insolvent by 2035 that worries me and I don't think we are yet in a place where we're talking about no but it's what you're basically saying is the scale of the challenges are not being met by the current debate and i would agree with that but can you hand on heart say that another term under rishi sunak is going to answer the scale of the challenges that we've got one do you think it's going to happen and secondly would that really be a good thing for the country i know you're a lifelong conservative but can you really say that he has a mountain to climb as an ex-polster You know, being 20 points behind is a massive challenge for him.

31:51In saying that, Labour need a 12.5 % swing to have a majority of one. So it is a challenge for Keir Starmer as well. I tell you what, I do think Rishi would certainly, I would have him absolutely in the room to deal with these challenges. Why? Because he follows the evidence. He's forensic when it comes to understanding the economy and what needs to happen with the economy. when he came into... Let me push back on that on Brexit. Prusci Sunak was on record as saying, I did that very old-fashioned thing of looking at the numbers and I worked out this was the best thing for the economy. Nobody can pretend it's been the best thing for the economy.

32:28You see, I would respectfully disagree with you in the sense that... Seriously? To take 4 % out of the economy? No, I tell you for why. There was always going to be friction as you end a deep relationship that was pretty much frictionless. We tend to look at most political events in our lifetime, right? Sometimes you've just got to take the long view beyond the sort of five, ten year horizon. But the long view is about the big powers. Well, I think if the direction of travel in Europe does not alter, right, there's going to be massive challenges and possible fracture in Europe. And what worries me is that, I mean, you're somebody who knows about international affairs.

33:07I think the big problem that you face is that the world in 2016 is very different to the world today. So there were people, including Rishi and some of the things that some of the things you said at the time, which said, you know, the European economies are growing slowly. And here is this huge growth in China, huge growth in India. So what we need to do is we need to integrate more with those economies, more free trade, but that can't be better from this in Europe. And then the world changed. The world changed in two ways. We had a war in Russia and Ukraine. We become more aware that China is a national security threat.

33:35So we're trying to de-risk and decouple. And the world moves away from free trade towards increasing protectionism. At that point, this whole calculation becomes very difficult. And we begin to see that there might have been national security and trade benefits of staying close to Europe rather than betting the house on a shift towards the Pacific, which now looks much more risky. So I think the national security element to this will remain where we are core and front and center to the European security. You see it in Ukraine, you know, without getting into too many details, but we play a leading role, a coordinating role in the effort to protect Europe.

34:11But I'm talking about the way in which national security ties into economic de-risking and decoupling. You know, every board is now, how do we get out of China? 2016, you guys were all about how do we get into China? And I don't disagree with you. But of course, ultimately, there are risks associated with any decision. I still think in the long term, if we have a government that looks at competitiveness beyond the G7, then I think we're in a good place. You know, I spoke last night in the city of London, and I normally use my sort of opportunities is there to almost run it like my own mini focus group.

34:44They're all doing well. You look at FinTech. What are they voting? Actually, and this is really something that you might want to take back, Alistair, to the team in the Labour Party. They're worried because they're hearing mixed messaging from Rachel at the moment. And I don't want to obviously turn this into a party political argument here, but there is a bit of an apprehension as to what could happen. My biggest concern, I've got to tell you, and this is a cross party, and I hope Rory agrees with me, is so few of my colleagues in parliament have actually got any real experience outside of the world of politics.

35:18It is now dominated by people who are either special advisors or work in unions elsewhere. You can't say that about Keir. Coming through. Keir is actually, as I say, is probably the exception to that. I just worry that very few people understand that entrepreneurs lose money before they make money. So it's really hard to make money. you guys are a perfect example of a start-up you didn't know where this thing is going to go with this podcast you had no idea you could be sweating here all day long making nothing you've been incredibly well you look at what happened to Piers Morgan right these things happen in business and I just worry that the whole construct of parliament and parliamentary democracy is so important that the quality of human being entering it is on the decline 100 % that is what led to people like johnson trust i think getting to the top people who genuinely don't have the qualities that you need and i must i must bring up the old tax thing you've mentioned tax a couple of times because let's be frank your career came to an end it did because of the difficulties you got into over your own tax affairs and i just wonder back to jeffrey archer the barclays who you now work with is there a part of you that just thinks well you know you kind of do what you can get away with no but you because dan needle stuff i mean i read dan needles i know that name must trigger you but dan needles the tax lawyer who really took you on and his account of it is a pretty grisly account of bullying lawyers and obfuscation and stories changing and in the end you did end up paying back several million quid which if you'd have paid up front you'd probably still be here as a minister rather than as well somebody's legal partner one you won't be surprised i don't Some of the stuff Dan needs to have written is inaccurate and incorrect.

37:07But you haven't sued him. And, well, as I say, it's inaccurate and incorrect. I genuinely don't want to go into the who's right, who's wrong. I just want to get to how that happened, how you feel that happened to you. So from my perspective, I was dealing with HMRC on this. My real mistake was I was not specific enough on my ministerial declaration on the settlement I had reached with HMRC. And that was my mistake. And we own our mistakes, ultimately. I should have been much more specific to say this was the settlement. They found that there's a category called careless, which is non-deliberate, but it still carries a fine with it.

37:49and i wasn't specific enough to say by the way there was a fine attached to this category which then gave in many ways rishi no no other choice but to say i'm afraid you weren't specific enough although you've declared it you know i know this when when you become a minister you go before pet and you say all these things that was the real but the story as it developed and i particularly i think the kind of bullying lawyers and that sort of stuff you must regret that because that That was not a good look for a cabinet minister. So, again, on that, when you are in the eye of the storm, and when I said to you, for example, Dan Needle was inaccurate, he accused me of tax evasion.

38:29He accused me of, you know, investigation to me by the SFO, someone else, maybe not him, by the serious fraud office, which is completely untrue and alien to me. I was like, you're getting bombarded with these attacks. And then what happens is you put up your defenses. when I reflect on it now I think actually you know maybe I should have been upfront and say actually by the way yes I have settled my settlement is this and this is what happened that was my mistake can I sort of come towards an end with a sort of more positive thing tell us a little bit about what you learnt as a minister about the business of politics what made you less good minister at the beginning a better minister towards the end two or three things that you learned about what was different about being a minister from being a businessman for example really great question And one of the things I'd like to do, I hope, in the future is, if I convince all party leaders to agree to this, is to be able to reform how secretaries of state are able to bring in additional talent to help, whether on a project basis or a more long-term basis.

39:34So the great lesson I learned, there's a couple. One was we talked about earlier, which is, you know, actually transparency and opening up data. It's the best way to reform complex systems, right, whether it's education or health elsewhere. The real challenge was, you know, if you want to bring talent into Whitehall, it's really hard. I wanted to bring Sir Peter Bazalgette into the Department of Education. I thought he had some really good ideas around the creative industries. It took me, with a really supportive permsec in Susan Acklin-Hood, it took us 12 months to get him into the building. I was actually leaving the building to go to the Treasury to become chancellor when he was then allowed to be a non-exec on the Department of Education's board.

40:16No serious human being is going to wait 12 months to be told, you know, please come forward and bring your talents to help this country deliver better services. So one of the things I'd like to do is if I can get cross-party support for this is any secretary of state should be able to bring in a Kate Bingham. You know, people from the private sector who can contribute, you know, within four to six weeks of vetting would be normal. And then you can bring them in. But I'd go a step further. At the moment, you can, but you have to make them a special advisor. Right. Which means the reporting lines.

40:50I refer to most of my permsecs as the CEOs. Right. Because actually, as a secretary, you're probably more like a chairman rather than a CEO. And all the sort of levers lie with the machinery of the civil service. what I'd like to be able to say, look, I'm going to bring in Rory Stewart and he's going to do this job, but he'll have the same levers as a director general so that actually they can make decisions and stuff will happen in the machine. I think that will make a huge difference to outcomes, because if you can do that, whether it's on large scale infrastructure projects, on whatever the government's trying to achieve, then I think you'll deliver better outcomes.

41:25And Kate will be the first to admit, it wasn't just her. The magic of Kate is she then found five or six people who were brilliant absolutely brilliant at understanding vaccine vaccine manufacturing and then you got a bit bruised by the machine and then got bruised by the machine can i just close up by going back to the rory skillfully moved you off when we were talking about the issue of how i was inside your head because i think you lost perspective there you said that you were trying for the young people not to lose perspective not the young people i wasn't i was trying for that for the the 2019 intake yeah but they probably thought alistair come to some old has-been who ran this all the time.

42:00No, no, no. I tell you what you were able to do brilliantly is you fanned the flames of the storm on Twitter and on social media so brilliantly. But you just said that people weren't caring about Twitter. It's not the real world. That people just buckled, right? Because this thing to them became so big because you know how the ecosystem works, right? You fan it on social media, it gets into the mainstream media and it keeps going. And you were brilliant. I was sitting at home thinking, thinking, God, I wish I had power. I wish I could do something here. And of course, when I was watching it, I was thinking, well, this is a bit awkward because of course the person who's doing all this with him is me, right?

42:37Your friend, right? So the one thing, so then I'm thinking, what's in Adam's head about me? Because I'm saying Boris Johnson is a terrible human being. He's a terrible prime minister. Which is far more effective than me saying it. So was there not a little bit of you thinking, wait a second, what the hell has happened to Rory? You know, he's lining up behind Alistair Campbell. No, because you and I go back far enough to know that you've always had your very strong opinions about Boris. And there are those in our party who will take a different view to me on Boris. And so that was sort of logical.

43:07I thought his genius was this man is probably one of the best communicators the country has. And he worked out that there was a moment in time where social media was young enough and powerful enough to persuade a bunch of members of parliament who literally have not had the ability to be in the same building together to panic. And I thought it was a genius, you know... Music to my ears. Music to my ears. Incredible ability. I still think you're not supposed to. By the way, hold on a second. Let me evidence it for you. You guys are smashing it out of the board. Rory's head's big enough. But it's the truth.

43:42Look at what's happening here, right? Yeah, but we both... But Nadim, we both feel like we're sort of effectively political eunuchs. We're out in the wilderness. I think you're being far too modest, honestly. Well, no, thank you. Thank you for your time. it's been great I'm sorry it wasn't longer so many things that we could yeah we should get you back again and do a full thing on Iraq actually because I'd love to well Rory and I did two hours on Iraq a while back and it's still one of our most listened to episodes and I think actually to do we should get you back in the future and just do Iraq this man was amazing for those who are listening not watching he's now pointing at Rory's true Rory's true because that short trip he referred to to Iraq as mini-envoice for the then prime minister I watched him operate on the ground and his ability to just cut through and very quickly focus our people on the ground from the Foreign Office on what really mattered, what was material to what would be a positive outcome, which is obviously the destruction of ISIS, ultimately.

44:41Those three short days, I think, in total, we had to get phenomenal. That's why your friend and hero, Boris Johnson, shouldn't have kicked him out of the Tory party, because you were lost. That I would agree with. I think maybe one day he'll be back with us. Thank you for joining us and thank you for all your time. Thank you. Thank you for having me. Well, Anastasia, what did you think of that? I mean, it's sort of strange, really, because he's a very, he is an interesting guy. There's no doubt about that. He's had an interesting career. It's pretty amazing he didn't speak English to the age of, what, 10, 11 or something?

45:15No, I mean, clearly very interesting backstory. I mean, there is something a bit sort of a bit kind of cavalier about it, kind of put it that way. Geoffrey Archer, the Barclays, still loves Boris Johnson. I mean, it's quite compelling. I didn't want to get the whole thing bogged down in some of the sort of scandals and what have you. But you sort of feel he was a bit of a maybe a scandal waiting to happen there. So he joined with me. I loved, you know, he talks about our trip around Iraq together when we were traveling on behalf of David Cameron, and doing stuff after ISIS had taken Mosul. And I really liked him.

45:49I felt this is a real human being. He's somebody I can go through a checkpoint with guys with guns. He'll be calm. He'll be relaxed. He can deal with the driver. He can sit with presidents. He's somebody who had skills a lot of MPs didn't have. He's quite a worldly guy. And he's capable of being maybe less than an interview, but one-on-one. Kind of funny, frank, engaging. but I cannot get over the Boris Johnson thing. I was just simply still struggling to process. I remember when his kind of leadership ambitions collapsed, Nudams collapsed, and he had been on record explaining why he was not endorsing Boris Johnson.

46:27And he'd said to me in the week before, I made the mistake of going with Boris Johnson last time. I'm not going to do it again. He's no good at this, that, and the other. So I said to him, we were in the margins of today's studio. So come and join my leadership campaign. And sure enough, a few days later, he was again behind Boris Johnson. Yeah, yeah. And I got the feeling that if Johnson were to try to get back in, that Nadeem Zahabi would be right alongside him. Yeah. And this whole thing about the fact that he, I mean, the sort of big elephant in the room, which we didn't get into, is you're teasing him about him being out on television and radio day in, day out saying it's Alistair Campbell, it's Alistair Campbell, it's Alistair Campbell.

47:03But the big problem with that is that he's not taking on board the possibility that Boris Johnson may have objectively been a catastrophic prime minister whose end had come. He's still telling himself, sorry, very flattering to you, but it's only a partial truth that the only reason he came down is that Alistair Campbell was an able social media operator. The whole thing's nuts. Who convinced a bit of the 2019 intake. I mean, I just, I can't. see the big picture. He can't see the broad thing that actually Johnson's net popularity ratings of the country are catastrophic. No, but what he sees in the same way as Nadine Dorries sees it and some of the media still see it, they see the Boris Johnson, parts of Boris Johnson that they want to see and they don't see the things that the rest of the public who don't think he's a very attractive personality see now so clearly.

47:51All the 56 ministers who resigned and who were just like, I can't put up. Do you remember those days? Half his entire Ministers are like, I can't handle this man anymore. I'm leaving. And Nadam Zahavi still somehow believes it's a clever social media trip. I think he's got this sort of attraction to that sort of character, which makes you think, well, you know, he's got something in himself that sort of is a little bit, what can I get away with? Anyway, Dan Needle is going to think I'm a complete whip that I didn't absolutely tear up to shreds over the taxes. I'd also like to thank Nidam for coming on because it's been quite a barren time when a lot of conservatives have been reluctant to come on the show and CCHQ seems to be, the Conservative Central Office seems to be stopping them from coming.

48:35So thank you, Nidam, for coming on and exposing yourself to our questioning. See you soon. See you soon. Bye-bye. I'm Chris Hadfield. I'm an astronaut, an author, a citizen of planet Earth. Join me for a six-part journey into the systems that power the world. Real conversations with real people who are shaping the future of energy. No politics, no empty talk, just solutions-focused conversations on the challenges we must overcome and the possibilities that lie ahead. This is On Energy. Listen wherever you get your podcasts.

From the publisher

What does the former Chancellor make of the current Conservative election campaign? What was his experience escaping Saddam Hussein's Iraq? And does he stand by his support of Boris Johnson and Brexit?

Nadhim Zahawi joins Rory and Alastair to answer all these questions and more on today's episode of Leading.

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