UPDATE: Labour candidate defends Labour on economy...

The Labour general election candidate for North Devon has defended the Government’s record on the economy.

Mark Cann, speaking to the Journal, said: “I think we have got it right. One can look back and say: where did we go wrong? The recession is a product of a worldwide crisis and not just a domestic one.

“I think to talk about ‘Gordon Brown’s deficit’ is over-simplifying a much more complex of factors.

“What Gordon Brown and Alistair Darling have managed to achieve over the last 18 months is pretty remarkable when you think of the dire warnings about the levels of unemployment and depths of recession we were going to be facing.

“I’m in favour of the transaction tax, the Robin Hood tax. I know the Government is talking about international agreement on that. I think we need to manage our financial sector better.

“Hindsight’s a wonderful thing, but I think we all ran away with ourselves a little bit and I think we have to do more to control that. In terms of borrowing, I think it had to be done and the proof will be we will come out of this recession with greater strength.”

His Tory election rival, Philip Milton, said: “I don’t think the Lib Dems and Labour are prepared to acknowledge there is a very significant problem. The Conservatives have said there is a humongous problem here.

“We are talking about a level of debt which the man in the street doesn’t comprehend and doesn’t appreciate how big it is because it hasn’t really affected most people.

“If they’ve got a mortgage they’re actually paying the lowest mortgage rates they’ve ever paid. One out of four jobs are state jobs so they’re doing extremely nicely.”

The Lib Dem candidate, Nick Harvey, said: “I think we have enjoyed economic good years until two or three years ago and the Labour government deserves some credit for that.

“They also deserve some of the blame for the situation we are in now, but that is more down to international issues.

“We would make the high street banks who take ordinary deposits separate from the banks who speculate with money on the sort of international money markets.

“We would keep the state guarantee behind the high street banks so people knew their deposits were safe.”