Category: 1994

  • Mr Major’s Speech at Wreath-Laying Ceremony in Warsaw – 1 August 1994

    Below is the transcript of Mr Major’s speech at a wreath-laying ceremony at the site of the Liberator Stone in Skaryszdwski Park in Warsaw, on Monday 1st August 1994.


    PRIME MINISTER:

    Ladies and Gentlemen,

    It is a privilege to be with you this afternoon and to have had the opportunity of laying this wreath. It is a wreath in honour of all the air crew who lost or risked their lives to bring help to the heroic people of Warsaw during that terrible time in 1944. 1944 is especially remembered but of course the help spread through so much of the war.

    We stand this afternoon on the spot where a Liberator aircraft was brought down; British, Canadian and South African airmen died on that occasion. This afternoon we are here especially to remember them and we rejoice that the only living survivor of that crash is with us here today; he is here together with comrades from the air drop, veterans from Poland and from allies and Commonwealth countries.

    We look back over a space of fifty years to those remarkable events. As we do so, we owe it to the dead to continue the task of building a Europe in which peace and stability will take root and will remain with us for ever. I have but one simple message on this occasion and that is that Poland and Britain can join together in that task of providing peace in the future.

    It is my privilege to be your guest to lay this wreath today. It is the privilege of all of us here to be here today in freedom because of what was done by the men who died in that Liberator and so many others besides. Let us therefore remember them not just in the short term but for ever and I am delighted to be but a small part of that remembrance on this occasion and thank you for being here.

  • Mr Major’s Joint Doorstep Interview with Polish Prime Minister – 1 August 1994

    Below is the text of Mr Major’s joint doorstep interview, held with the Polish Prime Minister, Mr Waldemar Pawlak, in Warsaw on Monday 1st August 1994.


    PRIME MINISTER:

    I was delighted to have the opportunity of discussing a range of matters with the Prime Minister this afternoon. Firstly let me say how pleased I am to be here, it is a very remarkable occasion, this 50th anniversary, and anybody who has studied, even at the most superficial level, the remarkable heroism of Warsaw in 1944 will understand the importance of the occasion, so firstly let me say how pleased I am to be here.

    PRIME MINISTER PAWLAK:

    [Not interpreted].

    PRIME MINISTER:

    Let me just add a few words. We did not only discuss the past, of course, though we touched upon it as I indicated a moment ago, we spent a good deal of time discussing the present and the future. As far as the future is concerned we looked at the future prospects of Poland in due course becoming a member of the European Union. The British are very much in favour of widening the Union, we do not believe the European Union is complete as an instrument until it has the EFTAN states as members, until it has the Central and Eastern European countries, prominent amongst them of course Poland, as members as well. So we look forward to the prospect of Poland becoming a member of the European Union and we examined some of the matters that needed to be determined before that could come about. It is clearly a little way ahead but we are anxious to move that forward as speedily as is consistent with Poland being able to undertake the competition necessary when she becomes a member.

    Thirdly, we discussed some contemporary matters and in particular trade matters and the development of the mass privatisation programme in Poland. We foresaw a great many business opportunities in a range of areas – oil, gas, predominant but not only that, tobacco and a range of other areas as well – where there was the prospect of joint ventures and an increased investment and trading activity between the United Kingdom and Poland, and we discussed a number of technical matters like that in our brief discussion.

    I have invited the Prime Minister to come to the United Kingdom and he will be coming to the United Kingdom in November when we will be able to have much longer discussions on these and other issues and he will also be able to meet a number of other United Kingdom Ministers.

    QUESTION:

    Prime Minister, can you tell us anything about your talks with vice President Gore this morning, and anything on the exchange of letters between the Chief Secretary and the President of the Board of Trade, do you have any response to the suggestion that reveals a split in your Cabinet?

    PRIME MINISTER:

    I am accused of that every day and it is usually nonsense, and this is too. I have nothing to say about domestic matters in the UK while I am here, certainly not. I think the difference between examining matters and making decisions is very wide and ought to be understood by everyone.

    I had the opportunity with the Vice-President this morning of examining the decisions of the Contact Group and looking at some of the problems that lie ahead in Bosnia. Clearly there is a great deal for us jointly to consider and that consideration will go ahead, so we spent most of our time discussing the future development of events in Bosnia.

    QUESTION:

    What is your reaction to the German presence at these celebrations when they pointedly were not invited on D-Day?

    FOREIGN SECRETARY:

    The Germans will be coming to VE Day of course next year, it was decided that that was appropriate and the Germans felt that was appropriate as well, so I can only answer for D-Day and VE Day, I cannot answer for these particular celebrations, that is a matter for the Prime Minister and the President.

    QUESTION:

    [Not interpreted].

    PRIME MINISTER PAWLAK:

    [Not interpreted].

  • Mr Major’s Speech at the Opening of Archives Exhibition – 1 August 1994

    Below is the text of Mr Major’s speech at the opening of the Archives Exhibition in Warsaw on 1st August 1994.


    PRIME MINISTER:

    The two themes of my visit are captured in this British/Polish exhibition: commemoration and cooperation.

    The exhibition is the result of cooperation between the Polish National Archives and the Public Record Office in London. They have done a fine job.

    I am here first to pay tribute to those who fought fifty years ago so that Poland might be free. To commemorate the men, women and children of Warsaw who risked everything in that cause. And to recall the heroism of those who flew supplies to the Home Army.

    The documents and photographs gathered together in this Exhibition bear witness to the extraordinary bravery of the citizens of Warsaw in the tragic days of August 1944.

    They record the efforts of those in Britain who sent help to the insurgents in Warsaw.

    They show the courage of the Polish, British and other Allied airmen. The pilots and their crews flew from the south of Italy across hundreds of miles of occupied territory for the sake of a few precious minutes over Warsaw in which to drop their supplies.

    The exhibition shows the desperate straits of the insurgents as they fought, often hand-to-hand, sometimes underground, to defend their city; the distress of the Allies that they could not do more to help the defenders of Warsaw; the agonising choices which had to be made; and the determination of the Allies to fly in supplies at enormous cost in lives and material.

    Winston Churchill was moved by Poland’s fight and Polish spirit. He gave the command for help to be sent, however uphill the struggle. In the end, this help could not change the outcome. But it had a deeper meaning, which is not forgotten by the people who lived through the Uprising or who have studied its history.

    After the Uprising, Warsaw was razed to the ground. When I came here two years ago I saw the city that rose on the ruins of the old. The fine reconstruction of the old Town and the determination to rebuild their capital is testimony to the pride and vigour of the people of Warsaw.

    The physical changes since 1944 are staggering. But the moral and political reconstruction of the last 5 years is as astonishing as the physical reconstruction of Warsaw. Poland has shaken off the legacy of Communism, the Command Economy and the Cold War.

    As we recall our past alliance, let me say this: Britain is supporting Poland also as she faces the challenges of constructing a truly democratic society. We in Britain are proud to help in this through trade, investment, transfer of Know-How; through all the cooperative links which exist between partner countries in Europe.

    I firmly believe in Poland’s ability to contribute to the stability and security of Europe. Poland’s application for membership of the European Union opens new prospects. I welcome it. I welcome the contribution that a free and democratic Poland will make to the Union.
    Every state, every nation, wants security. But for the Polish people, with their troubled history over several centuries, security has a special

    meaning. By developing our relations with you in a way which threatens no-one, and is not founded on a new division within Europe, we want to create a deeper sense of security in Poland.

    We welcome the enthusiasm with which you have embraced Partnership for Peace. We look forward to taking part in the first joint exercise on Polish soil next month: a symbol of what we can, and mean to, do together. We shall do all we can to build up substantial effective military cooperation between Poland and NATO: preparation for eventual membership.

    Next year we shall mark 50 years of peace in Europe. Now Poland is not only at peace, but is free. And Britain is at your side, as we were in the Uprising 50 years ago. We look forward to being equal partners within the European Union. As you prepare to join us there, you can count on our support.

  • Mr Major’s Speech at the Warsaw Uprising Monument – 1 August 1994

    Below is the text of Mr Major’s speech at the Warsaw Uprising Monument on 1st August 1994.


    PRIME MINISTER:

    Mr President, Ladies and Gentlemen.

    This year and next, in many of the countries in Europe, we commemorate the inspiring but tragic events of 50 years ago.

    We honour the bravery and sacrifices of those who fought in a just cause.

    And we celebrate half a century of peace and reconciliation.

    Your guests from abroad today, Mr President, embody that spirit of reconciliation.

    I am proud to represent my country here. Britain stood with Poland in 1939. Your Government then found refuge in London. Through the War, Poles and Britons served side by side in the air, on land and at sea.

    It was in a broadcast from London that the world first heard of the 1944 Uprising. Winston Churchill declared that Britain felt itself responsible for the restoration to the Poles of their own country.

    He was deeply moved by what he called “the martyrdom of Warsaw”. In his History of the War, he later gave a moving account of the struggle by Warsaw’s people to save their city, of their hardships, and of how they saw it almost totally destroyed.

    Britain tried to help, though no country could do enough.

    During the fighting 186 sorties were flown from British bases on the other side of Europe, in the south of Italy. One in three of those aircraft did not return: 61 were lost.

    Earlier today I laid a wreath at the spot where one of them crashed, in the Skaryszewski Park, just across the river. I met there veterans from Britain and other Commonwealth countries and allies who risked their lives so that Poland might be free. They are a living witness to the values which bind our free nations. So are the thousands of Polish veterans who live in Britain today.

    The Uprising was Poland’s decision to assert her sovereignty and independence. But Poland’s tragedy was that the outcome of the war and of the Uprising left her under another occupation. It took 45 years fully to reassert your country’s independence and sovereignty.

    After the destruction of Warsaw in 1944, the people of Warsaw and of Poland rebuilt this capital city. The World can see your success and your pride: in the old Town, the Royal Castle, the streets and stones of Warsaw.

    Now you grapple with another challenge: to rebuild your economy and society after the devastation of Communism. With your other friends, we are taking part in the rebuilding of Poland: through trade, through investment, through transfer of know-how.

    And now a democratic and independent Poland has made the sovereign decision to apply for membership of the European Union. I welcome that. Europe will not be complete without Poland as a full member of our Union. The values of the Union are the values for which your citizens and ours fought and died 50 years ago.

    This evening we remember and honour those dead. We honour also all those who lived through that time of pity and terror. Soldiers and civilians. Men and women; and children, symbolised by the statue of the little boy soldier with the helmet. The brave people of Warsaw.

    Let the past be an inspiration for the future, for the new challenges of peace and freedom.

    Perhaps those who were not there cannot fully understand. But we can stand beside you now, as we stood then; and offer thanks and honour.

    In the words of one of the last broadcasts from Warsaw in October 1944:

    “Immortal is the nation that can muster such universal heroism. For those who have died have conquered, and those who live on will fight on, will conquer and again bear witness that Poland lives when the Poles live.”

  • Mr Major’s Speech to Conservative Middle East Council – 28 July 1994

    Below is the text of Mr Major’s speech to the Conservative Middle East Council, held in London on Thursday 28th July 1994.


    PRIME MINISTER:

    Mr Chairman, Ambassadors, Ladies and Gentlemen. Thank you firstly very much for your warm welcome, I am delighted to be your guest here this evening.

    I think it is more than a truism to say that this dinner tonight is timely. We are at the moment in the midst of a crucial period in the history both of the Middle East and of Arab/Israeli relations. So I am delighted at this particular moment to have the opportunity to address the Conservative Middle East Council and I shall use it in just a few moments to make an announcement about our support for Jordan.

    I have had, as your Chairman has just trailed, a personal interest in the Middle East ever since, as a new back-bencher, I visited the West Bank. It had its exciting moments, as Tony Marlow who I see is here this evening, will no doubt recall, others on that trip will have very special memories of some very exciting occasions during that special visit.

    But since then I have had the opportunity on many occasions to follow that up as Prime Minister in visits and many meetings and I hope within the course of the next few months to make a further visit or two to the region.

    So thank you, Chairman, for your hard work in organising the dinner and for your kind words. You and your colleagues in the Middle East Conservative Council represent a long tradition of interest in Middle East affairs in the Conservative Party. Standing at the Dispatch Box day after day I have, for good or ill, ranged behind me every shade of opinion and people whose detailed knowledge of the region stretches over many years and in some cases through many generations of their family and that can sometimes be a little daunting.

    Ever since 1980 when Lord Chelwood and your President, Dennis Walters, established this Council you have helped our party to build closer and better links with the Arab world. The influence of the Council has been profound. You have always been candid about where your sympathies lie but also ready to listen to other points of view. You have worked with people on all sides who want to see a peaceful settlement of the Arab/Israeli dispute and you have promoted the cause of moderation and peace throughout the Middle East.

    I am also particularly glad this evening to see the Dean of the Arab Ambassadors, Ambassador Mohammed Shakir [phon], and so many of his colleagues here with us this evening. Egypt has helped to lay the foundations for a lasting peace in the Middle East and Ambassador Shakir has played his own part in this historic and vital work on behalf not only of the Middle East but of the whole world.

    I want in a few moments to turn specifically to the peace process, that brings far brighter news for us than many people might have imagined not very long ago. But before I do I want to say just a word or two about the two shocking terrorist attacks in London this week. They are alas not isolated events, there have been other acts recently, for example those in Buenos Aires and Panama which have taken an appalling toll. We cannot yet be certain what lay behind those acts or who perpetrated them, neither can we yet be certain whether they are connected, but I know that you tonight would want me to express the repugnance of everybody present at those attacks and at all acts of terrorism and our sympathy for the victims and for the bereaved of those attacks.

    Terrorism is the enemy of everyone present here this evening and of many hundreds of millions not present here this evening. Terrorism has been directed at those who seek peace and progress in the Middle East, terrorism is perpetrated by those who refuse to abide by the rule of law and by the principles of a civilised society, we must seek out its perpetrators and bring them to justice, it is unacceptable for any state to tolerate, let alone support, terrorism and the international community must unite against it both now and for so long as it lasts.

    If I had said just a year ago that we were on the threshold of a new era in the Middle East I doubt that very many people would have believed me, optimism was out of fashion. But last August word began to spread of an outline agreement between Israel and the Palestinians. And when the declaration of principles was signed in September, a blow against pessimism everywhere was struck. That act of courage, for that is what it was, transformed prospects for the region.

    Now Israel has completed its withdrawal from Gaza and Jericho and the Palestinians have made an encouraging start in assuming their new responsibilities there. The knot has been cut, it is now easier to go forward than to go back and it is essential that we go forward with that peace process.

    We strongly support the declaration of principles and we particularly wish to give practical help to the new Palestinian administration in Gaza and Jericho and we aim to commit at least 75 million pounds in bilateral and multilateral assistance over the next three years. We are giving priority to the Palestinian police, good security self-evidently is vital to the Gaza/Jericho agreement. We have already run two training courses in the United Kingdom for senior Palestinian police officers and we provided equipment and in the future we shall do more. We are helping other pillars of the new entity. The Bank of England is advising the Palestinians on setting up a central monetary authority and that is something that I agreed we would do when Yasser Arafat visited London last year. British experts are helping to prepare for the elections later this year and to build the legal infrastructure. And we of course intend to help the private sector, the need for new enterprises and new jobs is self-evident.

    A comprehensive settlement is of course the ultimate goal. Last Monday’s summit between King Hussein and Prime Minister Rabin has been another huge step forward. I am one amongst many who can count themselves as a personal friend in Britain of King Hussein. I believe he has shown indomitable courage over many years and has led Jordan towards democracy as well as towards peace.

    So I applaud the Washington declaration ending the state of war between Jordan and Israel. We wish to support Jordan in every way we can along the path charted by King Hussein. I know from my many discussions with the King that the burden of accumulated debt has weighed heavily on Jordan for many years. If we can alleviate this burden I believe we can help Jordan’s economic growth and democratisation and underpin the new relationship with Israel.

    I am therefore delighted, Chairman, to announce tonight that Britain will be converting outstanding balances of loans to Jordan by the Overseas Development Administration to a grant, this will be worth approximately 60 million and should be seen as a powerful signal of our support for King Hussein and for Jordan.

    And we hope also to see early progress on the Syrian and Lebanon tracks. In Lebanon, despite the continued Israeli presence in the south, impressive efforts are under way to rebuild the country, and in particular Beirut, after years of destructive conflict that destroyed that magnificent and historic city. A just and a lasting comprehensive settlement is now a real possibility, it would produce a lasting stability, something unknown to anyone now living in the near East. And it would offer the chance of growing prosperity, of increased trade and investment, of better communications and of harnessing the talents and potential of all countries in the regions, including Israel. With this more hopeful prospect it is surely time to end the Arab boycott of the eight summit nations proposed at Naples.

    More generally I would like to see a new partnership and a deeper understanding between Britain, Europe and the Middle East. In his Oxford speech last October the Prince of Wales argued that the links between the West and the world of Islam mattered more today than ever before. As he rightly said, there is much that binds the cultures of the West and the Middle East together, respect for knowledge and for justice, compassion for the under privileged, the importance of family life. We deeply respect Islam, we do not regard it as a threat. It is completely wrong in our judgment to equate the extremism of a few in the Middle East with the religion of Islam.

    We live in neighbouring regions of a shrinking world. Thousands of Britons live and work in the Middle East and in other Islamic countries, hundreds of thousands of the citizens of Britain adhere to Islam in this country. We benefit from the diversity and richness of each other’s culture and traditions, just as we do from the vibrant network of personal and professional connections. And we must jointly stand against those who ferment misunderstanding or seek in whatever way they can to try and drive our countries apart.

    The surge in British trade with the Middle East last year shows some of the benefits of partnership, helped by the efforts in fact of many of the people here present this evening. British exports to the region went up by nearly 15 percent with increases of up to 50 percent in some countries. The peace process should contribute to the growth of two-way trade in the future. And within Europe we shall of course lead the drive for more liberal trading arrangements to the benefit of all.

    These are exciting prospects but there are problems too and I should like to say just a few words about them. It is now over three years since Kuwait was liberated. But dealing with the consequences of Iraq’s aggression is sadly a continuing task for us. There is one clear objective, full and complete

    implementation by Iraq of all the relevant Security Council resolutions. We seek to help the Iraqi people, not to prolong their suffering. I deeply regret their hardship because they deserve better than they receive, but it is the Iraqi regime which by its failure to act and by its cruel and repressive policies is prolonging this suffering. None of the Security Council requirements is unreasonable, none of them is difficult, fulfilling them would enable Iraq to rejoin the international community.

    And Iraq’s neighbour – Iran – presents another serious challenge to the international community. Iran is an important regional power, we would prefer a normal relationship with Iran but many aspects of her behaviour are simply unacceptable, in many cases threatening, on human rights, on terrorism, her military and nuclear ambitions, her attempts to undermine the peace process. The Naples Summit captured the view of most members of the international community, the eight nations there wanted the government of Iran to participate constructively in international efforts for peace and stability. But we also said clearly and unequivocally that Iran had to modify its behaviour to allow that to happen and we look to Iran to heed that message.

    In Yemen the recent civil war has caused acute humanitarian problems and serious concern to the country’s neighbours. We supported the decision of the two former states to unify in 1990, we supported morally and materially the democratic elections of 1993. We were all the more disappointed when the unified government failed to operate either effectively or justly. A lasting solution will be found only through negotiation and dialogue. We have tried to help this process, we promoted both the Security Council resolutions, we have kept in close touch with our good friends in the region and we understand their concerns, we have supported relief efforts. All of us present this evening share the goal of restoring stability to Yemen. The United Nations Secretary General’s Special Envoy, Mr Brahimi [phon], is now trying to bring the two sides together. I urge the Yemeni authorities to cooperate fully with him in the search for stability and internal peace.

    With Libya the unresolved question of the Lockerbie bombing is another impediment to regional stability. We have said repeatedly that we are entirely prepared to suspend sanctions if the two suspects are handed over for trial either in Scotland or the United States, if the French obtain satisfaction over the UTA bombing, and if Libya renounces terrorism irrevocably. We have no other aims. Suggestions have been made from time to time for trying the accused elsewhere, such as in The Hague, possibly under Scottish law or even before a specially established United Nations tribunal.

    I have to say to you tonight that such ideas are not acceptable, they imply that somehow the jurisdiction of the Scottish courts is flawed and unreliable and that special arrangements should be made for the sake of terrorist suspects. We have given the Libyans every assurance of a fair trial in Scotland and humane treatment of the accused. If Libya complies with the Security Council resolutions there is no reason why our relations should not once more become positive and beneficial.

    Touching, if I may for a moment, on the Mahgreb, I would like to mention Algeria. We and our partners welcome the Algerian government’s agreement with the IMF on a far reaching economic programme and we are supporting it financially. Extremism thrives on economic deprivation. Successful economic reform will do much to widen support for Algeria’s government and her institutions.

    Let me if I may now turn at slightly greater length to Bosnia. We are again facing a very serious situation. For the past five months there has been a fragile peace in Bosnia, a fragile peace across most of Bosnia, tenuous, tense, often interrupted but nevertheless a form of peace. People have begun to rebuild their lives and their properties, as I saw for myself when I last visited there and saw people returning to their village after months and months hiding well away from it. Some hope had returned.

    That peace resulted from negotiations between the Muslims and the Croats in which British United Nations commanders played a crucial part. It has been preserved only because UNPROFOR was there to help preserve it, again with a large British UNPROFOR contingent playing a leading part and going first into some of the most dangerous places, such as Gorazde, to protect the population and mostly of course the Muslim population.

    Let me first describe what our aims have been in Bosnia. They have at times been misrepresented and at other times misunderstood, but it is important to be clear about them. It has not been our objective to impose a peace on Bosnia by military force simply because that has never been an attainable objective for the United Kingdom and our allies. If a simple military solution had been attainable of course we and others would have gone for it long ago. But anyone who has studied the terrain and the military dispositions of Bosnia knows that imposing peace would have required a huge military force, it would certainly have required the deployment of very large numbers of American ground troops as well as those of other NATO allies. That has never been in prospect, the casualties, including civilian casualties, would have been enormous, the conflict long and uncertain and the result would not have been a lasting settlement.

    So we have pursued three clear and realistic objectives. First, in the two years since I convened the international conference in London, we have unremittingly pursued a negotiated settlement, a settlement acceptable to the peoples of Bosnia, in short the only form of settlement that would last. I shall come back to that in just a moment. Second, we have sought to contain the conflict within Bosnia and we have so far succeeded in this. It has not spread yet to other volatile areas such as Kosovo or Macedonia. Croatia is mostly now at peace, East and West have not lined up on opposite sides, there has been a remarkable unity of purpose between Europe, the United States and Russia throughout this year.

  • Mr Major’s Speech to European Policy Forum – 27 July 1994

    Below is the text of Mr Major’s speech to the European Policy Forum on 27th July 1994.


    PRIME MINISTER:

    THE ROLE AND LIMITS OF THE STATE

    The party I lead has always been a party of change and reform. But we’re a conservative party. Our instincts are for stability. We are wary of schemes to uproot what is familiar. So in discussing the role and limits of the state I am not going to unveil some new constitutional blueprint. I don’t think this country needs politicians throwing the British constitution up in the air to see how the broken pieces fall.

    Today, we are opening up the map of how Britain is governed. It’s a big agenda, dwarfing any changes we’ve seen since the modern pattern of government was established. Times change; needs change. But change must come against a stable background.

    So you will find me wary of change in the basis of our constitutional settlement – the Union between England, Scotland, Wales and Northern Ireland; wary of new voting systems. You will find me opposed to those who think that national identity must be suppressed in the interests of political progress. I strongly reject that view. The nation state is the greatest fixed point in our political firmament. You cannot suppress the individualism of an island race. We are content to build on consensus and co-operation, unwilling to accept centralism and direction.

    In my first speeches as Prime Minister I placed wider personal ownership and higher quality in public service at the heart of our objectives for the 1990s. In 1991, I called for a revolution in ownership. I said then:

    “I want to give individuals greater control over their own lives. For every family, the right to have and to hold their own private corner of life; their own home, their own savings, their own security for the future. Building the self-respect that comes from ownership, and showing the responsibility that follows from self-respect: that is our programme for the 1990s. I will put it in a single phrase; the power to choose – and the right to own.”

    Conservatives have always stood for ownership. As well as ownership of property we need ownership of the important decisions in our own life. Which school for our children? What skill training for ourselves? What pension provision for our retirement? These are decisions for individual adults. To deliver these choices, I believed we needed a second revolution – in the way public services are delivered.

    As a councillor in Lambeth 25 years ago, I saw the alienation between bureaucracy and people, and I didn’t like what I saw. So in 1991, with the Citizen’s Charter, I launched a long-term programme to make services much more responsive to the people who use them.

    In the past four years much has been achieved in making government more accountable and in raising the quality of service. We are pursuing change not for the sake of change, but change for the sake of people. And today, as a result, when people want to learn something about reinventing government, they come to Britain to do so.

    The role of government

    Ownership and choice are essential to put power in the hands of people rather than government. The longer I’ve been Prime Minister, the more certain I’ve become that government should be wary of interference, and aware of its limitations.

    Over the years, the role of the state grows almost imperceptibly unless it is deliberately kept in check: a little subsidy here, a bit more regulation there, another Directive just there. We can no more stop fighting the battle against “big government” than the gardener can stop mowing the lawn or digging out the ground elder. We must resist the clamour for government action, magnified by pressure groups, on almost every item of news. It is one of the greatest follies of the late twentieth century.

    In the 1980s, Margaret Thatcher began to roll back the frontiers of the state, with privatisation, deregulation and the restoration of personal incentives. We have cut back state-owned industry by two thirds. Price controls, dividend controls, exchange controls have faded into history. So have income tax rates of 83p and even 98p in the pound.

    But more is needed. For example, we did not manage to stem the tide of European regulation during the 1980s. Now we have put up breakwaters: the principle of “minimum interference” we secured at Maastricht; and, of course, our opt-out from the Social Chapter, enshrined in a legally-binding protocol. With the German government, we are working to reduce regulations across Europe.

    The tide is turning. The number of proposals for new directives tabled by the European Commission has fallen from 185 in 1990 to some 25 so far this year. The Commission has acknowledged that one quarter of its statute book needs to be revised or repealed.

    At all levels my ambition is smaller government, efficient government, effective government, responsive government. When we say this, some ask if it is our ambition all but to abolish government. My response is no. I do believe that government has a vital, indispensable role to play. But I also believe strongly that the role of the state should be more limited.

    We see economic growth as the opportunity to reduce the public sector’s share of national income. Others take a different view. When they talk of using growth to pay for their pledges, they mean quite the reverse: expropriating the benefits of growth from those who created it. The second key difference, of course, is that we understand how that growth is created: and that if you plan to pay for your promises out of other people’s efforts, you are likely to find they down tools.

    So we see personal incentives as the key to growth; and growth as an opportunity to reinforce them – at all levels. I am glad that even in our recent difficult budgets, we were able to widen the band of income across which the taxman may only take 20 per cent. When we can, we will take this further. Our ambitions to limit taxes on the least well off are far from satisfied.

    To succeed in this, we need constantly to review what we do in Government and how we do it. Government must make a first-rate job of protecting the citizen; – defending this country, upholding law and order. It must provide high quality education and health – and security for the old, the sick, and others who depend on our welfare system.

    But we need reform even in these areas. Putting the front line first, getting the basics right, securing the best value for the taxpayer’s money and applying good old-fashioned commonsense: these are the disciplines being applied in every part of government.

    We live in a time of unprecedented social change. This throws up new problems. Government has a part to play in solving them. But it must recognise the limits on its wisdom and watch the unintended consequences of its action. Let me give an illustration. I have never hidden my ambition to extend nursery education, when the resources are available. But it would be destructive to enlarge it solely through LEAs and wreck private and voluntary provision. In all our policies, we must leave space for communities and voluntary associations. We must not let big government undermine the vitality of neighbourhood or family – stronger, more adaptable organisms than any structure the state may try to put in their place.

    In welfare, for example, we need a system that reinforces people’s efforts to be independent; and does not undermine them when they seek to improve their lives by their own efforts.

    The state must not hold people down in a culture of dependency. Throughout the 1992 Election campaign, I repeatedly referred to the need to give a “hand up”, not a “hand out”. Since then, we have developed policies to provide that hand up. It is not enough to adopt these words as a slogan. You have to have the policies to make such aspirations a reality.

    As a Social Security Minister in 1986 I helped Norman Fowler begin the reform of the social security system. We introduced Family Credit, which tackled the worst distortions of the poverty trap by the creative new device of assessing benefit on take-home pay. In the last Budget, the Chancellor enhanced this system for working parents.

    The welfare system must complement the working of free and flexible labour markets. It is a job that offers the best hope of a secure route out of poverty. And thankfully, many new jobs are now being created.

    Making it more attractive to hire people and more attractive to be hired will help cut into the bedrock of long-term unemployment. We need a more coherent approach to getting people back to work. So we are introducing a new Job Seeker’s Allowance, which will stop people being shunted from pillar to post between two administrative systems. This will help the system to respond to the needs of those who are unemployed.

    We are now looking at a range of ways of encouraging people back into jobs, coupled with tougher action on that small minority who make no reasonable effort to seek work.

    The ownership revolution

    Concern for the individual. The defence of private property. And the protection of the citizen against the power of the state. These have always been central objectives of Conservatism. The central objective of socialism, by contrast, has always been the pursuit of equality. Egalitarians find allocation more palatable than choice. They put uniformity before improvement. That means more power to the state and less to the individual. If they had believed in ownership, as we do, they would never have opposed council tenants’ aspirations for home ownership – the biggest transfer of wealth and power from the state to the individual of the past 15 years.

    When the housing market overheated and fell at the end of the 1980s, it claimed many victims amongst those who had bought at the peak of the boom. The collectivist Jeremiahs drew the wrong conclusion: not that Government must try harder to maintain a stable economy, but that home ownership was fool’s gold. Out there in the real world, however, people still aspire to own their own home. There were more than half a million first-time buyers in 1993-94. Some 111,000 council tenants applied for the Right to Buy that year. Opinion surveys suggest that nearly three-quarters of people under 25 aspire to be home owners.

    When I called for “the right to own” and “the power to choose” to be spread from the minority to the majority, I saw homes as only the first step. The corporatists, the collectivists, the central planners cannot cope with the notion of “popular capitalism”. They resent other hands on the levers of power – most of all the “invisible hand” of the market. But the freedom represented by your own savings, your own income in retirement, are sources of independence I wish to see enjoyed throughout society.

    It is beginning to happen. Pensioners’ incomes from investments have more than doubled since 1979. For the newly retired, it has nearly trebled. More than half of all pensioners now have an occupational pension. As a result, their average income has risen by more than 50 per cent, ahead of inflation, since 1979.

    But the savings habit is spreading wider. Since I introduced TESSAs only five years ago, a total of almost £21 1/2 billion has been invested in them; and there are currently just over 4 million TESSA accounts. The total invested in PEPS – over 4 1/2 million plans – now amounts to over £15 billion. Nearly 38 million people now have building society accounts. The amount held is almost £200 billion. There are over 60 million personal bank accounts, containing over£ 120 billion, while 8 million people have personal pensions. Well over 3 million people now run their own businesses. And there are today more shareholders – 10 million of them – than trade unionists.

    Money widens choice. Low income tax rates widen choice. But there are other, more subtle, forms of ownership, too. I want people to have ownership of more of their lives, not just have things allocated as the state sees fit.

    The Right to Buy gave choice in housing which over 1 1/2 million people have exercised. Parents in over 1,100 schools have voted for their school to be Grant-Maintained – unequivocally free to manage itself independent of the Town Hall. I want to see far more GM schools in the future. Parents now have a choice of schools; and we are relaxing the rules that used to prevent popular schools from expanding or good new schools coming into being.

    But crucial to choice is information. Without knowing what is on offer, choice is meaningless. So we have launched an information explosion which I believe is irreversible. It may have worried many whose services can now be judged by their results. But such information meets the wishes of the public. It is here to stay – and to be developed further.

    The public sector revolution

    This ownership revolution requires a transformation in the way government conducts its business – an overhaul I signalled three years ago in the Citizen’s Charter.

    Concern for the individual as the user of public services: concern for the individual as taxpayer. These lay behind the privatisation programme which began in the 1980s. Today, the total number of major businesses returned to private ownership has reached 47. The total raised, to pay off public debt and finance future services, has topped £55 billion. it is hard to remember now that every privatisation was criticised at the time as “a bridge too far” – even the sale of British Telecom, whose customers have since enjoyed a 30 per cent fall in phone charges, and whose shareholders have enjoyed a threefold rise in the cash value of their investment. The pattern of greater efficiency and better customer services is repeated throughout privatised companies.

    But there was a danger that those public services we believed should remain the responsibility of the state would be left behind by the stream of privatisation: that they would drift along, stagnant and second best. That was the challenge I faced: how to promote excellence in all parts of the public service – in our public education system, our National Health Service; and our social services. The Citizen’s Charter was conceived as a programme, above all, for raising standards.

    Just because the state remains responsible for ensuring a public service is provided, it does not mean that it should be deprived of the energies of private enterprise, the stimulus of the free market, or the clarity of independent regulation which have transformed privatised companies. The task for the 1990s was to find ways of applying these within the public sector. Today, as our reforms advance, the boundary between public and private is open country, which an enabling government can scour for the best ways of using limited taxpayer’s money.

    Five ways to break down boundaries

    So let me outline five ways in which we are mapping out this new territory.

    First, we are continuing our privatisation programme, tackling more complex areas.

    Second, we are bringing in private capital, to make better use of taxpayers’ money, and introducing the skills of private enterprise into the public sector.

    Third, we are bringing competition and choice into public services.

    Fourth, we are devolving power within government itself.

    And fifth, we are developing a “new accountability” – making public services respond more directly to the people who use them.

    Let me say a little more about each of these in turn.

    The new privatisations

    First, there are still industries in public ownership which need to be revitalised by private enterprise and competition.

    The focus today is on industries which had seemed doomed to be locked in the grip of the state forever. To liberate them we need to develop new ways of safeguarding their public service obligations. For example, whatever the outcome of our consultations on the Post Office, we will maintain a universal letter service, and a universal charge for delivery. We are now consulting on whether these obligations are best maintained by partial privatisation or by another route.

    Another example is the privatisation of British Rail. Here competition is being introduced into many parts of the old monolith. But we will continue to provide subsidies for train operating companies which are uncommercial. And, at the same time, we will require all franchises to meet, as a minimum, the standards of service set out in BR’s Passengers’ Charter.

    Private Finance

    Second, we are finding new ways of engaging private capital, to make every pound of taxpayer’s money go further. The City Challenge programme involves 1.2 billion of public spending. But its effects will be multiplied by the £3.6 billion contributed by private sector partners. In Wigan, challenge funding was the seedcorn whose harvest is 2,000 new homes, 5,000 new jobs; and 800 new businesses in derelict areas of industrial decline. In East London, Manchester, all our big cities, you can see the same thing. And we have extended the principle of challenge funding to the new Single Regeneration Budget, which will be the cornerstone of our future urban policies.

    The private finance initiative offers even greater potential for change. It levers in private capital, shares risk with the private sector and brings in its management skills. It is showing that the taxpayer need not finance all our economic infrastructure. The Dartford Bridge and Channel Tunnel are already open. The new Ashford Passenger terminal, another private finance project, is already being built.

    We hope to agree a contract for a new train service for London Underground’s Northern Line by the end of the year, and contracts for the Channel Tunnel Rail Link and the West Coast Main Line by next summer. In the autumn, we will be going out to tender for the first four privately built, financed and operated roads. And tender documents are going out this week to five consortia bidding to build two privately-financed prisons. All these are projects which in the past would have had to be financed entirely by taxpayers – if they had ever seen the light of day at all.

    Private finance involves complex issues. Sharing risk between public and private sectors is not simply a matter of splitting the difference. But to make the best use of limited capital spending, we need to make sure each and every government department is looking for ways to use private finance to supplement taxpayer resources.

    I am not convinced that they are. We asked departments to prepare a list of projects suitable for private finance. We will shortly publish this. It will show up some gaps. Some departments face legal obstacles. Where these exist, we must remove them. But all departments need to know that, as the private finance initiative develops, Ministers will have to convince EDX – the Cabinet Committee which allocates public spending – that they have fully explored private finance options. I am determined to ensure that every service gains from this initiative.

    Competition and Choice

    Third, we are letting competition and choice into the public sector as a spur to efficiency. In health, we have separated the function of paying for care for the patient from providing care for the patient. The OECD recently described these reforms as giving Britain “one of the most sophisticated and effective means of allocating health resources.” The results have been dramatic. Our hospitals are treating one million more patients a year.

    Competition has a wonderful habit of concentrating the minds of those between whom a choice might be made. So we have also been inviting private companies to bid for government work. Nowadays, we are not just letting out contracts to maintain buildings and clean streets, but to do white collar work as well. For example, the Inland Revenue has signed a 10-year contract, worth £250 million, to have its IT support work done in the private sector. By May of this year, some £1.3 billion of central government activities had been “market-tested” under the Competing for Quality programme. On the results so far, average savings to the taxpayer from both “in-house” and outside bids have been of the order of 20 per cent. Tight control of running costs will mean that all Departments must continue to pursue such efficiency. That will be good for the quality of service and good for the taxpayer.

    Taking decisions at the right level

    Fourth, we want to push power away from the centre of government itself. In the Civil Service we have some of the best talent in Britain. We aim to exploit it better. This means giving departments more freedom to manage their own affairs, and separating out agencies so that they can be more responsive to their customers. We’ve taken this approach right down to the local level: liberating Grant-Maintained schools from political control, and giving fundholding GPs and hospital trusts the chance to set their own, local priorities.

    Quality of government and quantity of government are two very different things. Unnecessary layers of government do more for bureaucracy than democracy. There is no such thing as an idle piece of government machinery. If it exists, someone will use it to spend money or regulate something – and probably both. I reject much of the mindless criticism of management we have seen. But it is clear, for example, that we do have too many layers of administration in the health service. Good managers have helped to deliver improved health care for millions of people. But we can simplify the structure and improve further. So one priority for the next parliamentary session is a Health Services Bill to axe the regional health authorities and thin out the alphabet soup by allowing DHAs and FHSAs to merge.

    Sometimes we are told-that-you cannot have true accountability unless locally elected politicians monopolise all the local bodies involved in public services in their area. I do not share that view. I believe strongly in local government. But I want to encourage other members of the community to give their expertise, get involved and take on more responsibility.

    At present, for example, not everyone who can contribute to better policing by serving on a police authority has the time or political inclination to serve as a magistrate or councillor. So our reforms will allow for an injection of other local talent: such as headteachers experienced in dealing with the drugs problem, farmers who can help in the fight against rural crime, business people who will ask hard questions about how the police use their resources.

    As our reforms progress, they do, of course, sometimes create new pieces of machinery as well as removing old ones. But in a more transparent system there will be more accountability, because it will be clearer where the blame for the inevitable mistakes should lie. New managers have to accept that the price of their freedom is personal responsibility and pay linked to delivering their objectives. Whitehall, for its pan, has to accept that part of the price of liberating the energies and talents of local management is that it cannot control every decision in every hospital or every school. However, there are some in Whitehall, the Town Hall or some of the new agencies who find it hard to give up the degree of control they have traditionally exercised. Politicians and press often discourage them from doing so by scattering indiscriminate blame on them. The result, too often, is that those being charged with new responsibilities as local decision-takers are being snowed under by forms and circulars from the centre, as bureaucracy guards its back.

    I do not want to see the new freedoms we have given to local schools and hospitals, for example, restricted by new red tape and regulation. I don’t want to see another circular the length of a telephone directory, or to be told that it normally requires 14 forms to bring a simple prosecution against a shoplifter, who actually wishes to plead guilty. Of course, those who run local services must be accountable – but too many people seem to confuse accountability with bureaucracy. There is a difference – and I expect Ministers to be able to spot it.

    And there’s something else that I believe would help: circulars should spell out much more clearly the difference between a statutory obligation and recommended practices. I want all departments to make sure their circulars are produced in such a way that those reading them will be able to tell the limit of their statutory obligations without difficulty. This would go a long way to eliminating back door bureaucracy.

    The listening service

    Fifth, we have been making public services respond directly to the people who use them. Informing people is the first step – one too easily undervalued by people who are naturally articulate, have access to people in the system or simply don’t use public services. I recall in the early days of the Citizen’s Charter, a distinguished former mandarin belittling the idea of regular school reports. “Of course,” he said, “all schools already send parents reports”. Well, he was wrong. They should have done. But many didn’t. They all do, now.

    Published targets tell people what they are entitled to expect. Performance tables tell you when these obligations have been met. Under the Citizen’s Charter, public services now publish information on the performance of individual schools, hospitals and police forces. By the end of December, every local authority will have published information – in their local newspapers – about their performance on everything from response times to 999 calls, to the time it takes to process your planning application. This is a revolution that the grand may belittle. But it is one by which the ordinary family is empowered. And the results of publishing targets are beginning to speak for themselves.

    In 1989, before we published targets for waiting times for operations, 90,000 people were waiting over two years before they were treated. Today, no-one should be waiting over two years. Before we published punctuality targets for public transport, no-one knew if their local line was better or worse than the next one. Now they do. The result? Punctuality improved. How long you have to wait for an operation, for your train, for an ambulance: those aren’t just dry statistics for the accountant and the experts. They are of vital interest to everyone.

    Publishing more information may mean that the Government faces more criticism. That may seem a perverse reward for greater openness. But it is better to have things out in the open and face the criticism, rather than have things swept under the carpet. When you shine a spotlight into a dark corner you may not always like what you find. But that doesn’t mean that you shouldn’t shine the spotlight. You need to know if something is going wrong because that is the first step to putting it right.

    We can no longer be expected to believe that every element of public service is doing as good a job as any other, or that the only way to improve services is to spend more money. The league tables recently published on hospital performance showed that for four routine operations – all of which were medically agreed to be suitable for day surgery – some hospitals were doing nearly all operations as day cases and some were doing none. League tables have forced into the open the question of why taxpayers’ money goes further in some places than others. And I want no-one to be in any doubt that they are here to stay.

    The new public sector

    So the public sector is changing and will change further. In the future it will not only be smaller but less monolithic. We published a White Paper on the Civil Service just a fortnight ago. We aim to encourage the civil service to modernise and develop within a framework which maintains its traditional values of integrity and political impartiality. It will be unbundling the general task of administration into distinct, vital – and valued – skills: whether in framing policy, defining objectives, setting standards, articulating relationships between different parts of the system. purchasing services either in the open market or within government itself.

    The relationship of departments with the providers of service – be they doctors, teachers or administrators – should become ever more transparent. Providers will come in all shapes and sizes – some still directly employed by the state, some on contract. The common factor should be that they will all have clearly-defined standards to meet, combined with management responsibility for how these are met.

    And there will be another group of specialists with a duty to secure quality service for the public – the inspectors and regulators. Again, some of these may be outside the public sector itself, with their roles defined but not managed by the state.

    OFSTED is just one example. This new body will secure, for the first time ever, systematic inspection and reporting on all Britain’s 24,000 schools in the next four years. Once this cycle is completed OFSTED’s work will continue, although I should expect it to focus in greater depth on those schools where results are covered up or found to be weakest. This new four-year cycle is a huge step forward. Previously, it would have taken HMl some 60 years to get round secondary schools, and 200 years round all primaries.

    The way ahead

    We will be legislating shortly to take these reforms further.

    Our Pensions Bill is designed to give greater security, equality and choice. We will underpin occupational pensions with new protection against the possibility and the consequences of fraud. New age-related rebates will make personal pensions attractive across a broader age range. And, as a first step towards greater freedom in retirement, personal pension holders will be allowed to buy annuities at the time which suits them most.

    We will be introducing greater freedom and choice by liberalising the law on Agricultural Tenancies. And we will be setting the legislative framework for the new Jobseeker’s Allowance.

    The bill to authorise the Channel Tunnel Rail Link will provide the framework for a massive private finance project. And by one means or another, we will be giving the Post Office new freedom to expand its services, here and abroad.

    We will be thinning out the layers of management in the Health Service. And where appropriate we will be reducing the number of tiers in local government.

    The fight against regulation is never won – but the successful passage of the Deregulation Bill will mean we have the option to repeal unnecessary legislation by secondary powers. This will greatly help our deregulatory campaign.

    What we are seeing – and what I have described for you today – are far-reaching changes in the nature of Government. Britain’s lead is again being imitated in many parts of the world. But behind the changing forms of Government, the principles of public service remain unchanged.

    I expect my ministerial team to put government on the citizen’s side: to control public spending, cut back on regulations, deliver on their Charter targets, listen to ordinary people and give them greater ownership of their own lives. I want government that devolves, that gives the citizen greater space to build communities which are not dominated by the state.

    There are better ways of acting together than in a state-run collective, and you can find them in every city, town and village in this country. Local communities are a precious part of this country’s inheritance. They are nourished by personal ownership, which increases people’s sense of personal responsibility: you only have to look at the council homes people have bought if you want proof of that. They are supported by changes in public services of the kind I have described.

    So the two revolutions therefore help to conserve what is best in this country: that is the very purpose of a Conservative government. And I believe government can do that best by delivering people the power to choose, the right to own, in a secure environment, a stable constitution and a strong economy.

  • Mr Major’s Fifth Cabinet – 21 July 1994

    Below is Mr Major’s fifth cabinet, announced on 21st July 1994.


    PRIME MINISTER – John Major
    CHANCELLOR OF THE EXCHEQUER – Kenneth Clarke
    FOREIGN SECRETARY – Douglas Hurd
    HOME SECRETARY – Michael Howard
    LORD CHANCELLOR – Lord Mackay of Clashfern
    SCOTLAND – Ian Lang
    WALES – John Redwood
    NORTHERN IRELAND – Patrick Mayhew
    LEADER OF THE COMMONS – Tony Newton
    LEADER OF THE LORDS – Lord Cranborne
    TRADE AND INDUSTRY – Michael Heseltine
    DEFENCE – Malcolm Rifkind
    HEALTH – Virginia Bottomley
    SOCIAL SECURITY – Peter Lilley
    ENVIRONMENT – John Gummer
    TRANSPORT – Brian Mawhinney
    EMPLOYMENT – Michael Portillo
    EDUCATION – Gillian Shephard
    AGRICULTURE – William Waldegrave
    NATIONAL HERITAGE – Stephen Dorrell
    DUCHY OF LANCASTER – David Hunt
    CHIEF SECRETARY TO THE TREASURY – Michael Portillo
    MINISTER WITHOUT PORTFOLIO – Jeremy Hanley

  • PMQT Written Answers – 19 July 1994

    Below is the text of the written answers relating to Prime Minister’s Question Time from 19th July 1994.


    PRIME MINISTER:

     

    Railtrack

    Mr. Gordon Prentice : To ask the Prime Minister, pursuant to his oral answer of 7 July, to the hon. Member for Leeds, Central (Mr. Fatchett), Official Report, column 447, what assessment he has made of the appropriateness of the payment of £500 to members of the Railtrack board for attendance at a board meeting.

    The Prime Minister : All Railtrack board payments were agreed by my right hon. Friend the Secretary of State for Transport and by the Treasury before Railtrack was established. No additional payments have been introduced since that time.

    Non-executive directors of Railtrack receive a £500 fee for each meeting of one of the board’s committees–safety, environment and health ; audit; and remuneration–which they attend as a member. Each committee meets up to four times a year, and no non-executive director is a member of more than two. They receive a separate annual fee of £10,000 for their main board duties.

    These payments are consistent with the Treasury guidelines on nationalised industry board members’ appointments, pay and bonuses.

     

    Disability

    Mr. McMaster : To ask the Prime Minister what plans he has to establish a pre-legislative committee or working group to consider the findings of the consultation on disability issues.

    The Prime Minister : Decisions on the way forward will be made in the light of the responses to the consultation document “Disability on the Agenda”, issued on 16 July.

     

    Debt Relief

    Mr. Pike : To ask the Prime Minister what recent discussions he has had with (a) European leaders and (b) Commonwealth leaders about (i) the Trinidad terms and (ii) Kashmir; and if he will make a statement.

    The Prime Minister : I announced in the House on 11 July 1994, Official Report, column 668, that the Naples summit had agreed to pursue additional measures aimed at increasing the level of debt relief for the poorest countries in line with the initiative that I originally proposed four years ago. We have consistently pressed for the implementation of full Trinidad terms in contacts with European, Commonwealth and other Governments. We regularly discuss Kashmir with our European Union partners, and with the Indian and Pakistan Governments who are the Commonwealth Governments most directly concerned.

     

    Engagements

    Sir Peter Tapsell : To ask the Prime Minister if he will list his official engagements for Tuesday 19 July.

    Mr. Harry Greenway : To ask the Prime Minister if he will list his official engagements for Tuesday 19 July.

    The Prime Minister : This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall be having further meetings later today.

     

    Lockerbie

    Mr. Dalyell : To ask the Prime Minister what representations Her Majesty’s Government have received from the Secretary General of the Arab League about the Arab League’s resolutions on Lockerbie and the destruction of Pan Am 103.

    The Prime Minister : The Secretary General of the Arab League handed a copy of the Arab League resolution concerning the Lockerbie bombing to Her Majesty’s ambassador in Cairo on 31 March this year.

     

    Ministerial Visits

    Mrs. Roche : To ask the Prime Minister, pursuant to his answer of 12 July, Official Report, column 483, how many overseas visits he has made as Prime Minister during which he undertook fund-raising activities for the Conservative party.

    The Prime Minister : Fund-raising activities for the Conservative party are not part of my official duties.

     

    European Council

    Mr. Channon : To ask the Prime Minister if he will make a statement on the outcome of the special European Council held in Brussels on 15 July.

    The Prime Minister : A special meeting of the European Council was held in Brussels on 15 July to consider the presidency of the European Commission and certain international questions. I attended with my right hon. Friend, the Foreign Secretary and with my hon. Friend the Minister of State for Foreign and Commonwealth Affairs. Following his consultations with Council members over the previous two weeks, the President of the European Council, Chancellor Kohl, proposed that the Prime Minister of Luxembourg, Mr. Jacques Santer, should take over as the President of the European Commission on 7 January 1995.

    All members of the Council endorsed this proposal. During a short discussion, I underlined the challenges facing the European Union in the period ahead, including making the single market and the need to extend prosperity and security to the east. I believed that Mr. Santer was well qualified to lead the European Commission during this period. He will have an important role to play in bringing together different points of view.

    In accordance with article 158 of the treaty on European Union, the Council President will now consult the European Parliament on the nomination of Mr. Santer.

    After a report by the Italian Prime Minister on the Naples summit, the Council discussed the former Yugoslavia. My right hon. Friend reported on the visit which he had paid earlier in the week to the region with the French Foreign Minister. Heads of Government expressed their support for the contact group’s plan. They believed that everything possible should be done to secure its acceptance and avoid a yet more dangerous situation.

    The French Prime Minister briefed the Council on the action taken by his Government in Rwanda. In the light of the grave humanitarian situation there, the Council asked the Commission to bring forward proposals for additional aid from the European Union.

    Finally, the Council discussed the Baltic states and Ukraine. The European Union is seeking to develop its relationships with those countries; to work for the withdrawal of the last Russian troops from the Baltic States; and to help Ukraine to develop a new energy strategy, including closure of the nuclear power plants at Chernobyl.

  • PMQT – 19 July 1994

    Below is the text of Prime Minister’s Question Time from 19th July 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Burns : To ask the Prime Minister if he will list his official engagements for Tuesday 19 July.

    The Prime Minister (Mr. John Major) : This morning, I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.

    Mr. Burns : Does my right hon. Friend agree with the conclusion that the Organisation for Economic Co-operation and Development drew from its perspicacious study of the British economy that the route to higher output, lower unemployment and lower inflation is through sound public finances and deregulation, not placing additional burdens and red tape on business, as advocated by the Opposition parties?

    The Prime Minister : I certainly recommend the OECD report to the House for what it says on both the economy and the health service. I hope that Opposition Members will take time to read it–I know that they have been preoccupied, but it is a good read. The point about the OECD report is that it recognises that the policies that the Government have pursued have helped to transform our economic prospects, which are better now than I can remember for many years–we intend to keep them that way.

    Mrs. Beckett : Does the Prime Minister agree with the Chancellor of the Exchequer that in this country we still exempt far too many goods and services from value added tax?

    The Prime Minister : The right hon. Lady should read all that my right hon. and learned Friend said yesterday before selectively misquoting what he said. I shall remind the right hon. Lady what my right hon. and learned Friend said in reply to the hon. Member for Dunfermline, East (Mr. Brown) who is chatting on the front Bench. My right hon. and learned Friend said:

    “It is utterly pathetic to come out with constituency letters in which I merely state my long-stated and well-known view that if we were starting again we might have a lower rate of VAT and fewer exemptions. As he knows, that is not policy now”.–[ Official Report, 18 July 1994 ; Vol.247, c.59.]

    Mrs. Beckett : But the Prime Minister is doing it again–he is running away from the question. I am asking him whether he agrees with the Chancellor that too few goods and services are subject to VAT. Surely he knows the answer to that. Most people in this country believe that too much is already subject to VAT and they want to know whether the Government are, as it now appears, looking for an opportunity to put VAT on fares, books or children’s clothes. It seems that the Government want to do that. Will the Prime Minister now admit it?

    The Prime Minister : Besides listening to what I said a moment ago, the right hon. Lady might care to look at what I said in the House on 14 June, 17 May and 25 January this year, and on 19 October, 6 May, 23 March and 18 March last year. If she is concerned about extra value added tax, perhaps she will tell me whether she agrees with the hon. Member for Sedgefield (Mr. Blair), who has said in relation to VAT on private schools and private medical care :

    “That is something specifically being looked at”.

    Mrs. Beckett : Surely the Prime Minister realises that the Chancellor has yet again let the cat out of the bag, by giving an indication that the Government want to put VAT on fares, children’s clothes and books. The Prime Minister was willing enough to deny his intentions on VAT before the election, when he was seeking votes, so why is he not prepared to come clean now? Does not the Tory party have a party addiction to VAT ; and is not that addiction damaging the budget of every British family?

    The Prime Minister : So much for a clear denial of extending VAT to private medical health care–we can draw our own conclusions from that.

    As for our policy, I refer the right hon. Lady again to what my right hon. and learned Friend said yesterday. As the hon. Member for Dunfermline, East (Mr. Brown) knows–he is raising this scare again–this is not our policy now and we are not starting again. I see no likelihood of extending VAT. I look forward to a clear denial of what the hon. Member for Sedgefield (Mr. Blair) said the other day about his plans to put VAT on private education.

    Mr. Nicholas Winterton : During his very busy day, will my right hon. Friend accept an invitation from me to visit Macclesfield, which has one of the lowest unemployment rates in the country and where manufacturing industry has a very meaningful presence? Will he also accept an invitation to sample the culinary expertise of my constituent, Mrs. Annie May of Sutton, which is near Macclesfield, who won the Good Housekeeping recipe competition and gave her £10,000 first prize to Save the Children Fund? Is not that an example of the success of private enterprise and social concern and involvement?

    The Prime Minister : My hon. Friend’s– [Interruption.] I know it is the end of term : relax. My hon. Friend’s invitation is irresistible. On a date that I cannot yet give him, I shall be happy to accept it.

    As my hon. Friend rightly says, unemployment is falling and has been falling for quite a long time–almost since the shadow Chancellor predicted that it would go up month after month.

    Mr. Ashdown : Will the Prime Minister list what steps Britain is taking to assist in Rwanda and what further steps he proposes to relieve suffering and save lives from the terrible catastrophe taking place today on Rwanda’s borders?

    The Prime Minister : As the right hon. Gentleman may know, we have already provided air lifts to help with the food required in Rwanda. They are likely to continue. We are liaising with our partners on what may be done.

    Mr. Budgen : Will my right hon. Friend explain why he has decided not to take the opportunity to make a formal statement on the important choice of Mr. Santer as president of the European Commission? Also, why does he not explain why he proposes the appointment of the right hon. Member for Islwyn (Mr. Kinnock) as a Commissioner–an appointment which will give much pleasure to all members of the Labour party?

    The Prime Minister : Upon the latter point, no formal decision has been made. When I have a decision to announce I will announce it. As for a statement, none was necessary. If any hon. Member thought that it was necessary, but not forthcoming, he would no doubt have tabled a private notice question.

     

    Q2. Mr. Lewis : To ask the Prime Minister if he will list his official engagements for Tuesday 19 July.

    The Prime Minister : I refer the hon. Gentleman to the reply that I gave some moments ago.

    Mr. Lewis : Does the Prime Minister concede that the 1988 changes in the television concessionary licence scheme have proved to be very unfair– even more than they were previously–and that now that it has been determined that the Government will continue the television licence, will he not now return to 1988 and install some fairness into the system, for all pensioners?

    The Prime Minister : I do not think that returning to 1988 is an easy proposition, but I note the point that the hon. Gentleman makes.

     

    Industrial Relations

    Q3. Mr. Bates : To ask the Prime Minister what assessment he has made of the change in industrial relations in the United Kingdom since the 1970s.

    The Prime Minister : The strike statistics speak for themselves. There were fewer strikes last year than in any year since records began. Legislation to establish a fair framework for industrial relations has been a key element in attracting inward investment and creating jobs.

    Mr. Bates : As 2 million passengers brace themselves for another day of disruption on our railways, caused by the inflation-busting pay demand of the National Union of Rail, Maritime and Transport Workers, can my right hon. Friend confirm that some 75,000 members of the RMT pay their political levy to the Labour party and have been eligible to vote in the Labour party’s leadership elections?

    The Prime Minister : I was not aware of that, but 75,000 is an awful lot of potential votes. Perhaps we will get a clear condemnation of the strike now that the ballot has closed.

     

    Engagements

    Q4. Mr. Barnes : To ask the Prime Minister if he will list his official engagements for Tuesday 19 July.

    The Prime Minister : I refer the hon. Gentleman to the reply that I gave some moments ago.

    Mr. Barnes : The next Prime Minister’s Question Time is in exactly 13 weeks time. That is three whole months. What does the Prime Minister think should be done to respond to the representations of Members of Parliament in the meantime? What avenues are supposed to be available to us?

    The Prime Minister : The same avenues that have been available to every Government since 1945, including those available to Members of Parliament under previous Labour Governments.

    Mr. Paice : Can my right hon. Friend confirm that, as a result of pressure from the Ministry of Agriculture, Fisheries and Food and our right hon. Friend the Foreign Secretary, the German Government have withdrawn their totally unwarranted threat to ban British beef? Will he congratulate the European Commission on using sound scientific evidence as the basis for decision making and encourage it to do likewise with future scientific matters?

    The Prime Minister : I should certainly be happy to do that and am happy on this occasion to offer my congratulations on the way in which the matter has been handled in Europe. I think that it has been handled very well. The Chief Medical Officer has repeatedly made it clear throughout the saga that British beef can safely be eaten by anyone, both adults and children, including patients in hospital. I am delighted that Germany has confirmed that unilateral measures will not now enter into force. I think that that shows that the whole of the Community, including Germany, now accepts that British beef is safe.

     

    Q5. Mr. Simpson : To ask the Prime Minister if he will list his official engagements for Tuesday 19 July.

    The Prime Minister : I refer the hon. Gentleman to the reply that I gave some moments ago.

    Mr. Simpson : Does the Prime Minister accept that the £500,000 retirement hand-out paid by Severn Trent Water to its former chairman will go down as the most expensive disconnection in the history of the water industry? Will he explain why, at the end of the 12th wettest winter since 1727, and facing a 67 per cent. increase in their bills to pay for a 60 per cent. increase in profits and a 30 per cent. increase in the top wage increases of management, the public cannot water their own blooming gardens? Does not that amount to one privatisation cock-up too far?

    The Prime Minister : On the earlier part of the hon. Gentleman’s question, as I have said before, I would expect the shareholders and the regulator to question carefully any salary or payment that proved to be excessive. As for the general question of water privatisation, I think that even the hon. Gentleman will concede that, after years of under investment, there is now a substantial investment to deal with environmental matters, of precisely the sort that Opposition Members have asked for for years.

     

    Q6. Dr. Liam Fox : To ask the Prime Minister if he will list his official engagements for Tuesday 19 July.

    The Prime Minister : I refer my hon. Friend to the reply that I gave some moments ago.

    Dr. Fox : How much of the fall in Britain’s unemployment and the rise in Britain’s competitiveness does my right hon. Friend attribute to the Government’s supply side reforms, especially labour law reform? Does he think that there is any case for dismantling our labour law reforms and trade union reforms, as suggested by Labour leadership candidates?

    The Prime Minister : It is difficult to quantify precisely how much, but I have no doubt that they have had a significant effect. Equally, there is no doubt that a peaceful workplace is a prosperous one. I certainly assure my hon. Friend that, unlike Opposition Members, I have no plans to sweep the board clean and start again.

     

    Q7. Mr. Canavan : To ask the Prime Minister if he will list his official engagements for Tuesday 19 July.

    The Prime Minister : I refer the hon. Member to the reply that I gave some moments ago.

    Mr. Canavan : On the question of VAT which was put by my right hon. Friend the Member for Derby, South (Mrs. Beckett), may I ask the Prime Minister to give us a straight answer to a straight question : will he name one thing, just one thing, on which he will never ever impose VAT?

    The Prime Minister : The hon. Gentleman should look at what I have said in the past when I have made it perfectly clear that I can see no circumstances ever when food would be subject to VAT, and I repeatedly set out the answers to the other points, on the many occasions that I quoted for the right hon. Member for Derby, South (Mrs. Beckett). Perhaps the hon. Gentleman would care to read them.

  • PMQT Written Answers – 18 July 1994

    Below is the text of the written answers relating to Prime Minister’s Question Time from 18th July 1994.


    PRIME MINISTER:

     

    Electricity and Water Companies

    Mr Gordon Prentice : To ask the Prime Minister what assessment he has made of the effectiveness of ministerial exhortation on the pay and other benefits of directors of electricity and water companies in 1994.

    The Prime Minister : I have made it clear on many occasions that directors should follow the lead that the Government have set for pay in the public sector.

    However, remuneration of directors is a matter for the judgment of companies and their shareholders, within the framework of established company law, and reflecting affordability and individual and corporate performance.

     

    Nuclear Proliferation

    Mr. Llew Smith : To ask the Prime Minister, pursuant to his oral answer to the hon. Member for Chingford of 11 July, Official Report, column 674, which are the other countries involved in nuclear proliferation to which he referred in his answer.

    The Prime Minister : Both Iraq and North Korea are countries of nuclear proliferation concern. Both states have breached their obligations under the International Atomic Energy Authority full scope safeguards agreements. We are also concerned by reports that Iran may be seeking to develop nuclear weapons, and we continue to emphasise the importance we attach to all states party abiding by their obligations under the nuclear non-proliferation treaty. We also take very seriously reports that India, Israel and Pakistan may possess nuclear weapons. We urge these countries to allay suspicions about their nuclear programmes by acceding to the NPT as non-nuclear weapons states.

     

    G7 Summit

    Mr. Vaz : To ask the Prime Minister what was the cost to the Exchequer of the G7 summit in Naples.

    The Prime Minister : It is not possible to give the cost of this meeting at present. A figure will, however, be available in due course.

     

    Parliamentary Questions

    Mr. Llew Smith : To ask the Prime Minister, pursuant to his answer to the hon. Member for Great Grimsby (Mr. Mitchell) of 11 July, Official Report, column 376, if he will set out the reasons why he will not make it his policy that all Government Departments provide substantive replies to questions rather than referring them to the Library.

    The Prime Minister : It has long been the practice that right hon. and hon. Members should be directed to the original source of information which is detailed or long.

     

    Gordon McNally

    Mr. Campbell-Savours : To ask the Prime Minister what discussions he has held with Gordon McNally relating to Government procurement.

    The Prime Minister : None.