If we are to believe the contemporaneous police notes as to what Mr. Mitchell said - and we have no reason not to - then the incident says two important things. The first is that Mr. Mitchell, although not flat out calling the Police Officers liars, is being very careful with the wording of his continued denial of what he is alleged to have said. I do not expect my public representatives to flat out lie - I might expect them to massage facts, or impart a positive spin, or not tell the whole story - but I do not expect them to lie, and when they are caught out in a lie ,what should be done about it?
The second issue is that, in times of extremis or anger, we can often, through what we say, demonstrate what our real attitudes are - And it is quite telling that Mr.Mitchell elected to use the phrases he did. It would seem that he sees workers like Police Officers as being an inferior class to him and the others that run the country. I do not want an individual with such attitudes in the cabinet, personally.
I think others are right - no one is too upset or offended by the industrial swear words - Its what he says that reveals an attitude of privilege and assumed superiority that it annoying, and the fact that by sticking to his story, he is effectively calling 2 police officers liars.
Any Tory strategist is going to be cursing Mr Mitchell I would imagine... :)