Tag: 1991

  • Mr Major’s Commons Statement on the Citizen’s Charter – 22 July 1991

    Below is the text of Mr Major’s statement to the House of Commons on the Citizen’s Charter, held on 22nd July 1991.


    PRIME MINISTER:

    The Prime Minister (Mr. John Major) : With permission, Mr. Speaker, I wish to make a statement on the Citizen’s Charter White Paper.

    The Government have consistently extended competition to raise standards and to give the citizen wider choice. We have introduced privatisation and competitive tendering, reforms to give new choice in health and education, and measures to give new opportunities in housing. These have worked to the benefit of the consumer.

    The White Paper that I am introducing today will build on those measures. Action will be expected from all public services on a number of fronts.

    First, I shall deal with standards. We will expect public bodies to publish explicit standards of performance and the results that they actually achieve. Targets will be set for improvement year by year.

    Secondly, on accountability, full, accurate information must be made readily available, in plain understandable language, about services provided. We will make it simpler to compare the performance of one body against another. That will put pressure on each to emulate the best and provide consumers with a basis for making choice. Except where their safety is threatened, public servants should no longer be anonymous. We will expect them to identify themselves to the public, by the giving of names on the telephone or in letters and, where appropriate, by the wearing of name badges.

    Thirdly, in the area of redress, where problems occur people are entitled to an explanation, and to know what to do. Avenues for complaint should be well publicised and simple, and when that does not suffice, there should be clear routes to compensation or redress.

    The Citizen’s Charter initiative will cover all our public services, as well as those large utilities which are now in the private sector. It is the widest ranging and most comprehensive ever undertaken by Government. It will involve more privatisation, wider competition, further contracting out, pay more related to performance, published performance targets – local and national, comprehensive information on standards achieved, more effective complaints procedures, tougher and more independent inspectorates and auditing, and better redress for the citizen when things go badly wrong. The citizen is also a taxpayer. Public services must give value for money within the tax bill that the nation can afford.

    The White Paper is only the beginning of the charter process. Nevertheless, it contains well over 70 specific measures to raise standards in public service. I shall set out some of the main measures in the White Paper, the first of which is on education. I commend to the House two old-fashioned concepts which are the benchmarks of success–reports and results. [Interruption].

    Mr. Speaker : Order. I say to the Opposition, particularly those who sit on the Front Bench, that they really should give a lead and set an example to their Back Benchers.

    The Prime Minister : They do give a lead–that is the point. I repeat, I commend to the House two old-fashioned concepts that are the benchmarks of success–reports and results. From the new school year, parents will be guaranteed a school report on their child’s progress. Parents have a right to be able to discuss this progress with their children’s teachers, and we shall ensure they know how to exercise that right. We shall also require schools to publish in standard format results achieved, and we shall ensure that tables comparing schools on a number of measures are published locally, and not just on exam results.

    There will also be significant reform of schools inspection. My right hon. and learned Friend the Member for Rushcliffe (Mr. Clarke) will be publishing detailed proposals later this summer, but I can tell the House today that there will be regular inspection of all schools, carried out with the help of independent people from outside, as well as inside, the education profession. Results of inspections will be distributed to parents. Tougher, more rigorous inspection will be the result.

    I move, secondly, to housing. This Government have given new rights to millions of householders, but we are determined that those who remain in public sector housing should secure a better deal. For housing associations, there will be a stronger tenants’ guarantee. For council tenants, we shall update and improve the Tenants’ Charter that we first published 10 years ago. We shall examine ways to simplify and to strengthen the procedures giving tenants a right to have small but urgent repairs done speedily. We are ensuring that they receive proper information on the standards of service that they can expect. For the first time, we shall consider bids directly from tenants on the worst run estates who want to form housing action trusts. No longer will the improvement of their estates be frustrated by the opposition of the local council.

    We are particularly concerned at the low standard of management of housing. We shall therefore bring forward proposals to extend compulsory competitive tendering into public sector housing management. The Citizen’s Charter will end, once and for all, the patronising of tenants by incompetent town halls.

    Thirdly, on health, we have already introduced new contracts in the health service to raise the standards demanded of hospitals. Under the Citizen’s Charter, we shall expect publication of clear standards for patient care right across the health service, and we shall begin by taking two further specific steps for the benefit of national health service patients.

    For out-patients, we shall require new procedures on the handling of appointments. This will mean that the practice of calling many patients to an appointment at the same time, which has been widely deplored, will be brought to an end.

    For in-patients, there have been substantial improvements in the quality and quantity of care provided. Nevertheless, a minority of people still have to wait too long for treatment. We therefore propose that, from next April, guaranteed maximum waiting times for in-patient or day care treatment should be published. The initial focus will be on those treatments for which waiting lists are longest, and where the pain, discomfort and general reduction in quality of life are most significant. I have in mind hip replacement, hernia repairs, and cataract removals. Guaranteed maximum waiting times are being negotiated now, but could range from only a few months to over a year. If it appears that the treatment cannot be provided in the guaranteed time, the health authority or board will seek provision elsewhere, including, if appropriate, from the private sector.

    Fourthly, I move on to transport. For road users, we will tackle the nuisance caused by road repairs. We will use new powers to make utilities digging up local roads co-ordinate their activity and complete work more swiftly. For large-scale road repairs, we will extend the use of “lane rental” incentives and penalties in order to reduce time taken for repairs. We will end the unnecessary coning off of miles of motorway when no work is being done. [Laughter]. I only wish that the country outside could see the Opposition Front Bench. There are still too many long stretches of motorway without proper service areas. In order to speed up the provision of those facilities, we will end the present system under which the Department of Transport is solely responsible for identifying sites. In future, we will allow developers to take the initiative in selecting sites to provide the facilities that motorists need. We will reduce the delay in getting a driving test, and make it easier to book appointments.

    The deregulation of coach services in the early 1980s has enabled a huge explosion to take place in cheap long-distance travel. Outside London, the deregulation of buses has brought in new operators and better value for money. In the light of that better service, we have decided that the time has come to deregulate bus services in London. Travellers on railway and underground services have in too many cases been expected to endure sub-standard performance. [Interruption].

    Mr. Speaker : Order. I am sorry to interrupt the Prime Minister, but I repeat that those outside are very interested in hearing about these matters. Hon. Members should not interrupt the Prime Minister in this way when he is making a statement.

    The Prime Minister : It is not surprising, Mr. Speaker–they do not care about customers.

    Travellers on railway and underground services have in too many cases been expected to endure sub-standard performance. The Government believe that here, too, further competition is desirable. We therefore expect to set out later this year detailed plans to privatise British Rail. British Rail’s monopoly of the network will be ended. We will also set up a new independent regulator to ensure fair access to the network and protect the customer.

    The Government will expect both British Rail and London Underground to be more open about standards of performance and methods of redress. British Rail will improve its compensation arrangements. It has been asked, as a start, to develop a new scheme, starting with annual season ticket holders. For the first time, where service over the previous year has been poor, passengers will be entitled to discounts when their tickets are renewed.

    The Government want to relate pay to performance in all aspects of public service. For example, on the underground and the railways, we shall expect records of punctuality and absenteeism to be taken into account, where relevant, in packages of pay for drivers, guards, signalling staff and others whose service impacts most directly on the public. Dedicated workers should receive a better reward than those who fail the public.

    Fifthly, I turn to local authorities. Many of the measures that I have already outlined will help to improve their performance. However, there are two further steps that I wish to announce today. We shall strengthen the powers of the Audit Commission. It will be empowered to publish comparisons which name local councils and education authorities. In future, they will also be required to publish a formal response to auditors’ reports. We will also extend the scope of compulsory competitive tendering in local government.

    Sixthly, in central Government we will promote more market testing, and extend contracting-out into new areas in the national health service, such as distribution, warehousing and non-emergency transport. We will publish a White Paper on this in the autumn. Government activities should not enjoy immunity from inspection and enforcement on such matters as health and safety. Except where national security is involved, all future legislation will ensure that Crown bodies are subject to the same inspection and enforcement procedures as others.

    Seventhly, we have new proposals on the Post Office. We will ensure that clear standards for service to the public are widely publicised. A new regulator will be appointed who will arbitrate on complaints, monitor performance and advise the Secretary of State on setting standards and protecting customer interests. Here, too, we believe that further competition would benefit the public. We will therefore narrow significantly the level under which the Post Office has a monopoly for letter delivery. We will reduce it from the present £1 to a level much nearer the first-class stamp.

    All these measures will bring direct benefits to our citizens, but we want to ensure that they have all the support that is needed in exercising the new opportunities the Citizen’s Charter will give. We will therefore act to strengthen the powers of the regulators of the public utilities on standards of service. We will ensure that the powers available to each will be brought up to the levels of the strongest. They will thus be able to set guaranteed standards and require compensation to be paid when those standards are not met. We will also enable them to required fixed appointment times for customers, for whom that is self-evidently important. We intend to end the annoyance caused to people waiting in all day for someone to call.

    In the public services, effective inspection is the key to maintaining standards. I have already outlined our proposals for inspection of schools. The Government will also introduce an independent element into other inspectorates. As a first step, more lay members will be appointed to the inspectorate of constabulary later this year, and there will be a full review of the independence and effectiveness of the social services inspectorate. Detailed proposals will be published later this year. We will also be consulting on the introduction of a new concept, the introduction of a network of lay adjudicators. These will be people who can help the citizen to get a swift resolution of those small but irritating complaints which cause so much frustration.

    Finally, the public are entitled to expect that essential services will not be damaged or interrupted by industrial action, which has not been put to the test of a ballot or which is unlawful in some way. At present, if the employer does nothing, the citizen is powerless. We therefore propose to amend the law. We will give a new right to individual members of the public to seek an injunction to halt unlawful industrial action affecting services covered by the Citizen’s Charter.

    This White Paper is only the beginning of the charter process. Over the next few months, separate charters for specific services will be published, and we will be introducing a new charter standard for quality in public services. Only those who can meet the high standards that the public expect will earn the right to display a new charter mark.

    We will introduce legislation, wherever necessary, to bring about the changes proposed. In addition, to drive the reform process through, I will be setting up a special unit in the Cabinet Office, and I will be appointing a panel of independent advisers to identify new areas for action to help carry the programme forward. I am pleased to be able to tell the House that its first chairman will be Sir James Blyth, director and chief executive of Boots.

    The Citizen’s Charter initiative will be fundamental to the Government’s policies for the 1990s. It is a programme that will carry on through a decade. There is much that is good in our public services. They contain a fund of talent, energy and commitment. Our new measures will release more of those qualities so that we can raise standards up to and beyond the best that is currently available. The charter programme will find better ways of converting the money that can be afforded into even better services. I want the people of this country to have services in which they as citizens can be confident and in which public servants themselves can take pride. I commend the proposals to the House. [Interruption].

    Mr. Speaker : Order. We have a heavy day ahead of us. I ask the House to settle down.

    Mr. Neil Kinnock (Islwyn) : For 12 years, the Government have presided over, and often prompted, reductions in the standards and provision of public services. They are still doing so. Having heard the Prime Minister’s proposals this afternoon, it is possible to conclude only that they are a mixture of the belated, the ineffectual, the banal, the vague and the damaging.

    Where are the practical policies in this White Paper for the action that is needed to tackle our crumbling schools? Where are the practical policies to reduce hospital waiting lists, which are now 40 per cent. higher than when the Government took office? And where are the practical policies, to be implemented now, to make up for the years of under-investment in a transport system that is increasingly congested and increasingly costly? Where are the practical policies for dealing with the growing housing crisis–after 12 years of record high mortgage repayments, a cut of 80 per cent. in the number of houses built for rent, and a trebling in the number of homeless families?

    Where are the practical policies in the Citizen’s Charter for reducing the number of people living in poverty, which has increased threefold in the lifetime of this Government? Why does the Citizen’s Charter not contain a commitment to a freedom of information Act? Why does it not improve access to legal aid? Why does it not provide necessary rights for the millions of disabled people in this country? What is there in this document, or indeed any other Government policy, to improve Government accountability to the people of this country? Where, for instance, is the costing of these proposals? The Prime Minister is sometimes interested in that aspect of things. Is this not yet another Conservative pig in the poke which will be unconvincing?

    Will the Prime Minister accept from me that, although any action to improve standards of safety, performance and accountability is welcome, giving people some compensation for poor service is no substitute for developing good services? Where is the commitment to improved training for those working in and managing services in the public and private sectors? Indeed, where is there anything to improve standards of provision and service for the 14 million people who every year have cause for serious complaint about the standards of goods and services produced by the private sector? Where is the mechanism in the charter for improving quality in local services? The statement, quite correctly, says :

    “The citizen is also a taxpayer. Public services must give value for money within the tax bill that the nation can afford.” What value for money did the Government give when they wasted £14 billion of taxpayers’ money on maintaining a poll tax that nobody wanted? What compensation will the Government offer for that monumental act of waste and injustice?

    Two months ago, the Prime Minister promised that his Citizen’s Charter would be a “revolution”. What we have is not a revolution but a massive evasion. What is being offered is very little, very late, very limited, very slow and, after 12 years of a Government who have run down so many public services, very unconvincing.

    The Prime Minister : What was unconvincing was the fact that the right hon. Gentleman talked about everything except what was in my statement. We know that customers do not matter to Labour Members. The right hon. Member for Islwyn (Mr. Kinnock) is the rambling rose of politics, but he certainly cannot stick to the subject matter. The right hon. Gentleman talks of crumbling schools. In which education authorities is the worst education? Labour education authorities. In which housing authorities is the worst housing? Labour housing authorities. The right hon. Gentleman knows that.

    He talks of costing. He should have read the document and turned to page 38. He would have seen there the difference in value for money between the best and the worst local authorities, and the improvements that can be made within the increasing resources that we have made available. He should look also at all the detailed matters that I have announced in the document which will directly affect the individual lives of people at present facing frustration. They will find those frustrations removed and their quality of life improved. It is all very well for the right hon. Gentleman to talk about what he would do. He would do nothing. Labour opposed privatisation, opposed contracting out, opposed competitive tendering and opposed every increase in individual rights that we have introduced in the past 10 or 11 years.

    We want competition in postal services ; Labour does not. We will extend performance-related pay; Labour will not, because Jimmy Knapp will not allow it. We will require education authorities to provide the information and education to parents which they want for their children; Labour will not do that and will oppose it. We will strengthen the powers of the Audit Commission; Labour seeks to abolish the Audit Commission. Labour can say nothing to us about public services. Wherever Labour is in charge, public services are a shambles. We are determined to ensure that that will not be tolerated any more.

    Several Hon. Members rose —

    Mr. Speaker : Order. I suspect that we shall have plenty of other opportunities to debate this matter. Today is a private Members’ day, and no doubt these issues can be raised on the motion for the summer Adjournment. I will allow questions to continue until 5pm, when we will move on to the next two statements. I will give precedence first to those who were not called on Friday.

    Sir William Clark (Croydon, South) : May I suggest to my right hon. Friend that he should treat the carping criticism from the Leader of the Opposition with the contempt that it deserves? Does he agree that the charter will be widely welcomed by passengers, parents, patients and post office users because it will give the citizen more rights, more freedom, and more value for money? Does my right hon. Friend agree that the speeches made over the weekend by the hon. Member for Dunfermline, East (Mr. Brown) about utilities not being included merely show how ill informed the Opposition are?

    The Prime Minister : It certainly does. Some of the widely trailed leaks that we have had from the hon. Member for Dunfermline, East (Mr. Brown) in recent weeks are ill informed. I suggest that our colleagues and friends in the press get a better class of leak in the future. There is no doubt that the proposals will be widely welcomed. What has so piqued the Opposition is that they cannot match our proposals.

    Mr. Stanley Orme (Salford, East) : The Prime Minister was reticent about the privatised industries, notably gas, electricity and water. Will the same criteria apply to those industries as will apply to the public sector? What we have heard this afternoon is not so much a Citizen’s Charter as an election address from the Conservative party.

    The Prime Minister : If the right hon. Gentleman reads page 44 of the document, he will find that the same criteria are applied to the privatised industries. On the success of privatisation, prices of electricity, gas and telecommunications have all fallen against the retail prices index, to the benefit of the consumer. The taxpayer also benefited from privatisation receipts to the extent of nearly 3p off the standard rate of income tax.

    The Opposition seem deeply split on the question of privatisation. Even the Opposition Front-Bench spokesmen apparently recognise that it is a good thing. I remind the House that the right hon. Member for Manchester, Gorton (Mr. Kaufman) said recently : “I am against privatisation.” He was then asked why it was necessary in Liverpool. He said :

    “because the Liverpool people deserve a proper service.” If it is right for Liverpool–and it is–it is right for the rest of the country, whether the right hon. Member for Salford, East believes it or not.

    Mr. Anthony Steen (South Hams) : May I first of all congratulate my right hon. Friend the Prime Minister on his outstanding achievement last week in international affairs? May I also congratulate him on his outstanding statement this afternoon on domestic affairs? Will the protection for railway passengers be extended to airline passengers? Can my right hon. Friend say something about the consumer in terms of those who travel on British Airways and those affected by the British Airports Authority and the Civil Aviation Authority? Will those people get the same rights as railway passengers?

    The Prime Minister : At the moment, different circumstances apply because of the range of competition that exists in attracting airline passengers. To that extent, there is not the same monopoly position– something which I believe has been the subject of some publicity in recent days.

    Mr. Robert Maclennan (Caithness and Sutherland) : Does the Prime Minister accept that, when the country has time to read this puce paper it will recognise that matters of some importance are contained in it, including proposals to extend competition? If they are to be of benefit to the travelling public, they are to be welcomed. The document also contains many trivial matters, such as lapel badges, and focuses on motorway services when there are parts of the country, such as my constituency, that are living in the mediaeval period in terms of road transport. Other matters are unformed, including the proposals for lay adjudicators. Does the Prime Minister not recognise that the real obstacle to giving citizens redress for grievances is the outdated, over-centralised political system over which the right hon. Gentleman presides, which offers no constitutional reforms to protect the true interests of the people of this country?

    The Prime Minister : I do not agree with the hon. Gentleman on his third point, but I am grateful to him for drawing the attention of the official Opposition to the many matters of real importance contained within the document. As the hon. Gentleman has said, I believe that those matters will be very welcome to the travelling public and also to the public who are treated in hospitals and to parents whose children use our national schools. They and many others will welcome what is in the document.

    As the hon. Gentleman said, there are smaller matters in the document, but I do not agree that they are trivial, because frustrations and difficulties for customers are not trivial. They cause immense difficulty and we in the public service, and those of us who are responsible for it, should be in the business of removing those complaints. If they are trivial, let us get down to dealing with them, and that is what we propose to do. The hon. Gentleman mentioned particularly motorway services under the heading of trivial matters. I think that many drivers who travel many miles along motorways and find no services whatever would not regard the provision of more motorway service stations as a trivial matter.

    Mr. Cranley Onslow (Woking) : The House knows that the Labour party hates good news, and the leader of the rubbish-mongers on the Opposition Benches has confirmed that this afternoon. The charter is excellent news for a great many different groups of our constituents, and they will welcome it. The House should welcome the charter most particularly because it redresses the balance of advantage in favour of the people who pay for and use public services and against the traditional socialist forces of incompetence, arrogance and indifference which are so well represented on the Opposition Benches.

    The Prime Minister : I am not sure whether I need to add anything to what my right hon. Friend has said. The Labour party is officially concerned about the producers of services, whereas we are concerned about the users of services.

    Mr. Paul Flynn (Newport, West) : Has the Prime Minister noticed the state of disorder and anarchy in social security offices throughout the country? There are more delays than ever before because the computerised system does not work and the overworked staff are using the two systems–manual and computer–together. Should he not get his own house in order before he advances on the Walter Mitty dreams in his statement?

    The Prime Minister : The hon. Gentleman is singularly ill informed. Otherwise, he would know of the Benefits Agency and its work to improve the service to social security claimants.

    Mr. Steve Norris (Epping Forest) : May I congratulate my right hon. Friend on a charter which gives powers to the regulators of public utilities? Did my right hon. Friend see the article in The Mail on Sunday by the hon. Member for Dunfermline, East (Mr. Brown), which said :

    “the real test will be how he handles the public utilities”? On the basis of that test, does my right hon. Friend agree that his charter has passed with flying colours?

    The Prime Minister : I certainly agree that it passes on the basis of that test and many others. The Opposition have been saying for some time that the test would be whether to increase powers for regulators. They are being increased but, for some curious reason, the Leader of the Opposition neglected to welcome it.

    Mr. James Molyneaux (Lagan Valley) : Is the right hon. Gentleman aware that there will be a general welcome for plans to make public authorities accountable, as they are usually the greatest offenders? Is he further aware that there will be satisfaction that he has included housing authorities in the list? Housing authority staff will welcome the fact that something is to be done to redress the top-heavy bureaucracy, which exists in housing authorities despite the efforts of many dedicated members of staff.

    The Prime Minister : Yes, I am grateful for the right hon. Gentleman’s remarks. I believe that they will be widely welcomed throughout the country.

    Sir Hugh Rossi (Hornsey and Wood Green) : Of all the positive and practical proposals that my right hon. Friend has announced, the stripping away of the anonymity of the officials with whom one has to deal on the telephone will probably be the one most welcomed by the ordinary citizen. Will my right hon. Friend ensure that that proposal is not watered down by the public service unions and those whom they sponsor? Personal responsibility, or a measure of it, is the greatest guarantee of efficiency and courtesy to the public.

    The Prime Minister : I will, Sir–with the solitary exception of cases where it is judged that there may be some personal danger to the person concerned. Only in those circumstances will we sanction the anonymity that previously existed. In the light of the question asked by the hon. Member for Newport, West (Mr. Flynn) a moment ago, I should say that the members of the new Benefits Agency have already started to identify themselves by wearing name badges and ensuring that people are aware of whom they are dealing with.

    Mr. John Fraser (Norwood) : Does the Prime Minister agree that the giving of citizens’ rights is empty unless those rights can be enforced and unless they are properly understood? Will he therefore reverse the process whereby millions of people have been denied access to legal aid?

    Will he tell the Lord Chancellor straight away to stop his withdrawal of legal advice and assistance to some of the most vulnerable people, will he end the wholesale closure of law centres and advice centres, and will he place a duty on local authorities to have a comprehensive network of advice centres to assist ordinary citizens?

    The Prime Minister : This is a continuing programme, and there are many sectors that we still wish to look at. Those rights will be enforced, and will certainly be understood.

    Mr. Peter Bottomley (Eltham) : Does my right hon. Friend agree that many teachers and local government officers will welcome the charter programme? Does he also accept that, because the targets are public, people will be able to see progress, what problems remain and identify the points for action so that everyone may gain? The Labour party makes a mistake in opposing the charter, because many people who vote Labour want to see such improvements.

    The Prime Minister : I am sure that my hon. Friend is right about that, and people will see improvements. I am surprised that the Opposition scoff at the sort of additional improvements and rights that will be available to, for example, parents in the education sphere, where there will be independent inspection reports, a detailed prospectus, comparative information on exam, national curriculum and truancy results, summary results in local papers, annual reports on their child’s progress, annual reports on the work of the school and comprehensive admissions booklets. Those are the new powers and rights for parents that the Opposition oppose.

    Mrs. Margaret Ewing (Moray) : Does the Prime Minister accept that some of us would wish to give consideration to the document before offering detailed criticism, much of which I hope will be constructive, particularly during the legislative process? Does he accept from me that a preliminary glance through the document reveals that its terminology is England-based– reference is made to the Department of Education and Science, the Home Office and the Department of Transport, and the illustration given in relation to motorways refers to Watford as the most northerly point? Will he give an assurance that our legal and educational systems will be given further consideration and that a separate document will be produced on those matters?

    The Prime Minister : I can give the hon. Lady that assurance. A separate charter will be published for Scotland in the autumn, covering a wide range of matters. I am grateful to the hon. Lady for saying that some consideration would be necessary before reaching a conclusion on what is in the document–a policy that is not widely welcomed. Indeed, it would be a novel principle for some right hon. Gentlemen.

    Mr. John Bowis (Battersea) : Is not the reaction of Opposition Members due partly to the fact that they have realised that they wished that they had come up with a charter, and partly because they realise that their union bosses would not have let them do so? Is not the lesson of my right hon. Friend’s statement the fact that, to have quality control, one must separate the quality controller from the provider of the service? Is that not exactly the lesson of privatisation in the past decade? But has not my right hon. Friend left out one major plank in consumer protection–ensuring that, after the next election, this Government continue in office?

    The Prime Minister : I have some confidence about that, so it was not necessary to state it explicitly in the White Paper. My hon. Friend scores a bull’s eye when he makes the point about regulators. It is also exactly true to say that the Opposition could not have come up with the proposals.

    Mr. Alexander Eadie (Midlothian) : The right hon. Gentleman must be aware that the parts of the Citizen’s Charter that will be most closely scrutinised are those aspects dealing with the national health service. Within the Citizen’s Charter that he has proposed today, will the low priority given to people over the age of 65 requiring hospital treatment cease?

    The Prime Minister : There is no such low priority for people over the age of 65–the hon. Gentleman is wholly wrong. In my statement, I said that we were going to produce guaranteed maximum waiting times for many treatments where the quality of life is significantly reduced–for example, hip replacements, cataracts and hernia repairs, which often specifically impact on the lives of elderly people. To that extent, there will be a direct improvement specifically, but not exclusively, for them.

    Mr. David Martin (Portsmouth, South) : I welcome the maximum waiting times for operations that my right hon. Friend mentioned, but how practical would such action be if there were no Government health reforms to build on, reforms that the Opposition opposed throughout?

    The Prime Minister : My hon. Friend makes a powerful point. Such actions would certainly be far more difficult, as the improving service offered by the national health service illustrates.

    Mr. Doug Hoyle (Warrington, North) : Does the Prime Minister accept that the carefully packaged statement that he has given to the House today has far more to do with the likelihood of an early general election than with the content of the announcement? Does he also accept that it is one thing to receive complaints, but another to act on them? What we need from the Government, as they are responsible for the public services being run down, is an influx of capital into the public services that will satisfy the complaints that the consumers are making. It is not enough simply to receive those complaints.

    The Prime Minister : The purpose is to set up a mechanism to ensure that those complaints are acted on, rather than leave people with the frustrating feeling, which they have often felt in the past, that their concerns are not being dealt with. I detected an air of nervousness in the hon. Gentleman’s remarks when he said that he thought that the charter might have something to do with the election–clearly, he thinks that it is an election winner.

    Sir Norman Fowler (Sutton Coldfield) : Is it not a fact that, for years, the debate on public services has been dominated by the providers of those services, and the significance of this Green Paper is that it redresses the balance and gives a voice to the user? Would not my right hon. Friend also agree that the fatal flaw in the case put by the Leader of the Opposition is that he is controlled by the worst vested interests in the public sector organisations?

    The Prime Minister : My right hon. Friend is entirely right to draw the distinction between providers and users of the service. We act very much in the interests of those people who use the services, which is why we are determined to see through the action that I have announced today. As for the Opposition, their position of being in baulk as a wholly-owned subsidiary of the trade unions is well known.

    Mr. Dennis Turner (Wolverhampton, South-East) : Would the Prime Minister recognise that there are millions of citizens in this country who have had to stand 11 years of Conservative government, when all the matters, services and values in which they have faith have been taken away? Has the Prime Minister spoken to the Secretary of State for Education and Science because, as we debate the Citizen’s Charter, the recent education White Paper intends to take away the rights of hundreds and thousands of men and women in adult and continuing education, who are writing letters every day telling us that they know that the Government have no concern for their needs? Why should people today believe that the Prime Minister is genuine in what he has to say?

    The Prime Minister : On the first point–it is 12 years, not 11 years. Secondly, if people are so dissatisfied, it is curious, is it not, that they keep re-electing this Government to power?

    Mr. Patrick Nicholls (Teignbridge) : Bearing in mind that the excellent reforms in the public service can succeed probably only against the opposition of public sector unions, does my right hon. Friend think it remarkable that he should be subject to criticism from a shadow Cabinet– [Interruption.] – in which 16 out of the 22 are supported by public sector unions– [Interruption].

    The Prime Minister : Over the hubbub from Opposition Members, I did not entirely catch the drift of my hon. Friend’s question, but I suspect that it related to the large number of Labour Members who are sponsored by trade unions. Certainly, the Opposition policy owes a lot to that.

    Mr. John Cartwright (Woolwich) : Although there is much to commend the Prime Minister’s proposals, is he aware of the scepticism felt by the thousands of my constituents who have to deal with a council which keeps them waiting months on end for essential repairs, fails to answer their letters, and keeps needy people waiting up to a year for rebates? As none of them benefits in any way from the work of the Audit Commission, contracting out, or the Tenants’ Charter – all of which were supposed to solve such problems – why should my constituents have any more faith in the Prime Minister’s proposals?

    The Prime Minister : The council to which the hon. Gentleman refers is, of course, Labour-controlled–I make that point in case any right hon. or hon. Member had overlooked it. The proposals that will directly affect council tenants in the hon. Gentleman’s constituency and elsewhere are the right-to-repair proposals. I understand the frustration that many citizens feel, because for years they have been unfairly treated by their local councils. It is only when improvements begin to be seen that they will accept the value of the charter. Whatever it takes, and however long it takes, we will get it operating to the benefit of consumers.

    Mr. Anthony Coombs (Wyre Forest) : Is my right hon. Friend aware that the charter will be welcomed by all consumers of public services and that, as usual, Labour has made a fatal miscalculation in opposing it? The charter provides what every parent in the country wants–reports which show how well their children are doing in class, how well that class is progressing relative to others in the school, and how well the school itself is performing relative to others throughout the country.

    The Prime Minister : I entirely agree with my hon. Friend that the charter will be welcomed. It puzzles me that Labour Members affect to deride the proposals, while the hon. Member for Blackburn (Mr. Straw) kept shouting earlier, “That’s our policy.” Which is it?

    Miss Joan Lestor (Eccles) : Bearing in mind the concern felt by the whole country at revelations of an increase in reported cases of child abuse within the family and at places of safety, the growing number of missing children, and the rising number of those sleeping rough on our streets, how do the Government justify the cut made by the Department of Health in its grant to the National Association of Young People in Care? If the Prime Minister is really concerned about citizens and a charter, why has he failed to take the action that we promise, and to appoint a commissioner for children as recommended by the Gulbenkian Foundation? Is it because children have no votes?

    The Prime Minister : The hon. Lady’s last remark is unworthy of her – at least, I hope that it is unworthy of her. The purpose of the charter proposals that I have announced, and of those to come – a great deal has yet to come in the years ahead – is to build up and improve services to ordinary people throughout the country. I know that social services, for example, are of concern to the hon. Lady. The review of the social services inspectorate and the intention to include lay people among its membership show that we are determined to ensure proper inspections and to prevent a recurrence of some of the problems that have arisen in the past. That is a significant move forward.

    Mr. Michael Shersby (Uxbridge) : Does the provision for guaranteed maximum hospital waiting times mean that a hospital or health authority which fails to provide an operation in time will be required to purchase that operation from the private sector?

    The Prime Minister : It certainly can mean that. The option will be there for an operation or treatment elsewhere in the national health service, or, if that is not possible, in the private sector. The guaranteed maximum waiting time will be honoured wherever the treatment is provided.

    Mr. Edward O’Hara (Knowsley, South) : What redress will be offered under the Citizen’s Charter to an applicant to the social fund who is refused a loan not because his needs are not recognised but because the local fund has been spent up for the year? Will such an individual have any redress against the local fund for not managing it well enough? Does the right hon. Gentleman agree that that example shows that no Citizen’s Charter can compensate for the fundamental problem of under-funding?

    The Prime Minister : Were any of the hon. Gentleman’s constituents to find themselves in the situation that he describes, the right place for them to go would be to the hon. Gentleman, as their Member of Parliament.

    Mr. Derek Conway (Shrewsbury and Atcham) : When the whingeing from the Opposition has died down, will not my right hon. Friend’s announcement be recognised as a milestone for this nation? Will his advisory team continue extending the powers and capabilities of the local government and parliamentary ombudsmen, so that their respective judgments against bureaucracy will be given some teeth?

    The Prime Minister : It is a milestone for us, but I suspect that it will be a headstone for Labour.

    Mr. Bernie Grant (Tottenham) : Will the Prime Minister help me with his definition of a citizen? Who will benefit from this great charter of his? Will Commonwealth citizens who are not settled in this country benefit from it? What about European Community nationals, or refugees and asylum seekers–from whom the Government removed the right to legal aid and assistance? Will they benefit from the charter? If not, what about a charter for them?

    The Prime Minister : Everyone properly resident in this country will benefit from it.

    Mr. Michael Lord (Suffolk, Central) : Although the charter may not be good news for Opposition Members, it is very good news for my constituents, many of whom have to struggle with miles of traffic cones when driving on the A45 or when travelling to work from Norwich to Liverpool Street every day. It is crucial that those who serve the public should not be allowed to remain anonymous, and I urge my right hon. Friend to try to cut through all the jargon and to remove unintelligible job titles. Finally, is it too much to hope that, one day soon, we may have a matron in every hospital?

    The Prime Minister : I missed my hon. Friend’s last point, but I will ask him about it later. I agree with his other points, and that the bogus opposition displayed this afternoon represents a grave misjudgment by Labour Members.

    Mr. Ian McCartney (Makerfield) : Which page of the charter gives rights to private sector tenants not to be abused by Rachman-style landlords? Which page gives rights to people receiving social security benefits, such as those students who this year will enjoy a zero income between now and returning to college? Perhaps the right hon. Gentleman forgot, in his rush to appear on television this afternoon, to provide any information on those two groups. Is it not the case that the Prime Minister’s proposals are not a Citizen’s Charter but a privatisation charter? We all know what privatisation brought–higher prices, poorer services, and big pay rises for those who run the new companies.

    The Prime Minister : The right hon. Member for Gorton is in favour of privatisation, so why is the hon. Member for Makerfield (Mr. McCartney) so upset? The hon. Member for Blackburn keeps saying, “That’s our policy.” Clearly,

    Labour is much more deeply split than I had previously thought. If the hon. Member for Makerfield had listened and understood my previous comments, he would know that this is a charter for the public sector and for public utilities. The hon. Gentleman, like the Leader of the Opposition, talks about everything except the subject under discussion.

    Sir Peter Hordern (Horsham) : Does my right hon. Friend recognise the important role to be played in his admirable proposals by the Comptroller and Auditor General? Will my right hon. Friend hold discussions with him, to ensure that the Comptroller and Auditor General’s reports reflect not only value for money and the efficiency of accounting but those aspects covered by the Citizen’s Charter, and that he reports to the Public Accounts Committee accordingly?

    The Prime Minister : We plan to discuss those matters with the Comptroller and Auditor General, and I will act as my hon. Friend suggests.

    Mr. Nigel Griffiths (Edinburgh, South) : Is the Prime Minister aware that many consumers of gas, electricity and water services feel that the regulators’ present powers are far too weak? Why has the right hon. Gentleman vetoed an increase in the powers of even the strongest regulator – I refer to page 44 – and the provision of a consumer ombudsman or of some other form of proper consumer representation?

    The Prime Minister : The hon. Gentleman was one of those who was leaking inaccurate information before the statement was made. Now that the proposals are public, he cannot continue to produce the same rubbish. If he reads the White Paper, and if he reads what I said earlier, he will find that we are increasing all the powers of the regulators to the level of the most compelling powers they have. That will give them extra powers which go beyond those currently available to them. That is precisely what the hon. Gentleman said that we would not do, and precisely what the hon. Member for Dunfermline, East (Mr. Brown) said was the test of the charter.

    Mr. Robert Adley (Christchurch) : Is my right hon. Friend aware that almost everything that he has said this afternoon will be welcomed by most normal people throughout the country? I will give an illustration. An elderly and frail constituent of mine saw me at my surgery on Friday. She has had recently to change her doctor. She has been told by those responsible for the bureaucracy of the health service that she will have to wait three months for her medical notes to be transferred. Is that the sort of case in which action can be taken?

    May I add one note of caution on railways? Will my right hon. Friend ensure that the Government do not rush into any decision on railway privatisation until he is certain that at least as good a service will be offered to the public as a result of any changes that might be contemplated?

    The Prime Minister : I can give my hon. Friend that assurance. As I announced, we propose to introduce a regulator to ensure that the service is adequate and in the interests of those who use the rail lines.

    The first point that my hon. Friend raised is not in the charter at this stage, but it is among the matters that we shall wish to consider.

    Several Hon. Members rose–

    Mr. Speaker : Order. Some of those hon. Members who have been rising in their places are seeking to participate in the summer Adjournment motion debate, and I shall endeavour to call them. I shall be able to call a great many more hon. Members if their contributions are brief.

  • Mr Major’s Commons Statement on BCCI – 22 July 1991

    Below is the text of Mr Major’s statement to the House of Commons on the Bank of Credit and Commerce International (BCCI), held on Monday 22nd July 1991.


    PRIME MINISTER:

    Mr. Neil Kinnock (Islwyn) (by private notice) : To ask the Prime Minister if he will make a statement about knowledge of, and understanding of, the operations of the Bank of Credit and Commerce International over the years before June this year.

    The Prime Minister (Mr. John Major) : My right hon. Friend the Chancellor of the Exchequer made a statement to the House on Friday and indicated that the Government will commission an independent inquiry into precisely those matters. I am now able to tell the House that the inquiry will be undertaken by Lord Justice Bingham, and that the terms of reference will be as follows :

    To inquire into the supervision of BCCI under the Banking Acts; to consider whether the action taken by all the United Kingdom authorities was appropriate and timely; and to make recommendations.

    All the matters that the right hon. Gentleman raised today will be covered in Lord Justice Bingham’s inquiry. He will have access to all relevant papers, officials and Ministers. Nothing and no one will be held back. I assure the House that any relevant matter of any sort will be made available to Lord Justice Bingham. The conclusions of the inquiry will be made public.

    Mr. Kinnock : I am grateful to the Prime Minister for responding to my request to make a statement. Is he aware that simply re-announcing the inquiry and the name of the person who will head it is not an adequate answer to the questions being raised by the public? Is he further aware that since that inquiry itself had to be prised out of the Government, it would be much more appropriate for the Prime Minister to give us now the answers which he can give us from his own knowledge as a result of having been both Prime Minister and Chancellor of the Exchequer?

    Is the Prime Minister aware that, in the 17 days since the BCCI was closed, it has become evident that in March 1990 the auditors – Price Waterhouse – reported that the BCCI was in near-bankruptcy and had repeatedly made huge non-performing loans, some to individuals who did not even exist, and secondly, that in October 1990 a further auditors’ report stated that grave and widespread irregularities continued in the BCCI’s banking, and referred also to fraudulent documentation in the bank? In addition, there is now substantial reason to believe that in January of this year a formal report was made to the Bank of England and to the relevant Government Departments that the BCCI was linked with terrorist activities. Is the Prime Minister aware that the Governor of the Bank of England told an all-party group of Members of this place last Thursday evening that he kept the right hon. Gentleman, as Chancellor of the Exchequer, fully informed of all developments concerning the BCCI? Is he aware also that the present Chancellor of the Exchequer told hon. Members last Thursday morning that until he became Chancellor he knew nothing about the BCCI–that was the responsibility of his predecessor?

    The specific questions that have previously been put to the Government but not answered must now be answered by the Prime Minister. First, when did Ministers, including himself as Chancellor, first know of the very serious banking irregularities at the BCCI?

    Secondly, when did Ministers, including the right hon. Gentleman as Chancellor, first know about fraud?

    Thirdly, when did Ministers, including the right hon. Gentleman as Chancellor and Prime Minister, first know that the BCCI was being systematically used for the laundering of criminals’ moneys and the funding of terrorism? These are– [Hon. Members :– “That is for the inquiry”]. These are answers that the Prime Minister can give today. Will the Prime Minister now tell us whether the decision to allow the BCCI to continue to operate after the receipt of the March and October 1990 reports was taken with the knowledge and the agreement of the Government? Why was the BCCI allowed to continue in operation after the Government had evidence that the bank was involved deeply in financing terrorists? Will the right hon. Gentleman agree that it would indeed be strange if the Government were not aware of the repeated reports from Price Waterhouse of very serious and continued irregularities at BCCI, of the money-laundering cases in the United States of America and, particularly, of the information available from the security services about practices at the BCCI?

    Does the Prime Minister not agree that no Government can be allowed to shift the blame on to officials, whether junior or senior? Is he aware also that neither legal nor moral obligations can be confined to the Bank of England? This is a matter of ministerial responsibility, and ultimately the responsibility of the Prime Minister himself. The small investors, the depositors and the local authorities that have lost millions of pounds have the right to full and honest answers, and they need to know which Ministers knew what, when they knew it and what action they took. They deserve those answers now.

    The Prime Minister : The right hon. Gentleman is muck-racking, and he knows it.

    Mr. Kinnock rose —

    Mr. Speaker : Order.

    Mr. Kinnock : On a point of order, Mr. Speaker.

    Hon. Members : Sit down!

    Mr. Speaker : Order. What is the point of order?

    Mr. Kinnock : There is certainly plenty of muck about, and I suspect that a great deal of it is on the Conservative Benches. The Prime Minister must withdraw his remark. Millions of pounds have been lost by small depositors, small businesses and local authorities. We deserve better than that answer– [Interruption].

    Mr. Speaker : Order. I am not responsible for the answers that are given.

    The Prime Minister : No one in my Government is seeking to shift blame. We have established an inquiry to determine where the blame lies, and we shall publish that inquiry. I am surprised that the right hon. Gentleman…

    Mr. Stuart Bell (Middlesbrough) : On a point of order, Mr. Speaker.

    Mr. Speaker : Order. The hon. Gentleman always rises on a point of order. I shall call him later.

    The Prime Minister : I am surprised that the right hon. Gentleman should again ask those questions. My right hon. Friend the Chancellor dealt with a number of them the other day, and the remainder are for the inquiry. The right hon. Gentleman asked for an inquiry, and he has got an inquiry. All documents will be available, and all officials and all Ministers will co-operate with the inquiry. Nothing will be hidden. The matters that the right hon. Gentleman raised are matters for the inquiry.

    The right hon. Gentleman has twice shifted his ground in recent days – [Hon. Members :– “Answer”]. I will answer the question in my way.

    Hon. Members : Did you know?

    Mr. Speaker : Order. May I say to the House that there are many people outside this place who are very interested in what the Prime Minister has to say. He has a right to answer the questions put to him.

    The Prime Minister : The right hon. Gentleman called for a statement in this House, and that could have only two purposes – either to secure discussion on the Floor of the House of the very sensitive operations of the security services or to prejudice the results of an independent inquiry. If it is the first, the right hon. Gentleman of all people should know, because he is a Privy Councillor, that security operations are never discussed on the Floor of the House. I find it surprising that he did not seek a briefing on Privy Council terms – something which is always available to the Leader of the Opposition. If it is the second, the right hon. Gentleman should be ashamed of himself.

    I shall tell the right hon. Gentleman precisely what I did and did not know. I did not see, nor would I have been expected to see, any of the audit reports that Price Waterhouse submitted during 1990. I was informed of the suspected fraud uncovered in a section 41 report only on 28 June this year. I had no previous knowledge of that. I have established an inquiry and I have made it quite clear that it will be open. All evidence, all people – including Ministers and myself – will be answerable to that inquiry. I shall publish the inquiry, and then answer for it before this House.

    Mr. Terence L. Higgins (Worthing) : Is not it worth reminding the House and the country that the BCCI was not a British bank, and that many of the problems have arisen because of the difficulties of international regulations? Have there been any international consultations on this range of issues?

    The Prime Minister : It is likely that, at the conclusion of Lord Justice Bingham’s report, those matters will have to be pursued, but at this stage it would be unwise of me to pursue them.

    Mr. Alex Carlile (Montgomery) : Although the appointment of Lord Justice Bingham to chair the inquiry is welcome and appropriate, will the Prime Minister confirm that he will have the power to compel witnesses to attend to give evidence, that the inquiry will include in its remit inquiring into the activities of the security services, and inquiring into whether it is appropriate for the Bank of England to approve banks registered under the toy-town banking laws of Luxembourg that guarantee secrecy to crooks and vagabonds? Will the right hon. Gentleman confirm that if Bingham concludes that, if the Government or the Bank of England has not shown a responsible duty of care to corner shopkeepers, compensation will be paid?

    The Prime Minister : The hon. and learned Gentleman’s remarks about toy-town authorities in Luxembourg come ill from a party which purports to be strongly European and I suspect that they will cause strong offence in Luxembourg and possibly elsewhere.

    On the hon. and learned Gentleman’s substantive point, it will not be necessary to compel people to attend the inquiry. Those who will attend are Government servants or regulators. I have given to the House a commitment that they will all attend and give evidence, that includes members of the security services, if Lord Justice Bingham requires to see them.

    Sir Peter Tapsell (East Lindsey) : Is it not a fact that this House has imposed on the Bank of England a responsibility for regulating the banks, and that it is not the Government’s task to do that? If there is a fault in the system, does it not date back to the codification of the bank’s powers which was imposed by the Labour Government in the Banking Act 1979–which on Second Reading I warned would weaken the much more arbitrary powers which the Bank had held? Is it not appropriate that we should proceed via a public inquiry–a suggestion which I made a fortnight ago? Have we not just heard from the Leader of the Opposition one of the most cynical displays of political opportunism that we have seen?

    The Prime Minister : I believe that each of my hon. Friend’s points is correct. It is an undeniable fact that, under the Banking Acts, the Bank of England is the regulator and is responsible for these matters. The Governor of the Bank of England has made it wholly clear that he will co-operate fully with the inquiry, and he will undoubtedly do so.

    Mr. Robert Sheldon (Ashton-under-Lyne) : Like many others this weekend, I read a great deal about the BCCI’s actions and the suspicions felt about the bank long before the recent revelations. Obviously, we accept that the right hon. Gentleman, as Prime Minister and as Chancellor of the Exchequer, may not have known about definitive acts of fraud, but conversations and discussions take place all the time between the Governor of the Bank of England and the Chancellor and it would be astonishing if he did not know something about that affair. Surely the right hon. Gentleman must have been informed about part of it.

    The Prime Minister : As the right hon. Gentleman knows, the audit reports submitted by Price Waterhouse suggested that there was widespread fraud, which is a substantive point. I did not see the audit reports from Price Waterhouse; nor was I informed about them. As soon as I was informed, on 28 June, we saw the Governor of the Bank of England and the action about which the House now knows was subsequently taken. At no earlier stage was I given the information that the right hon. Gentleman implies that I was given.

    Mr. Anthony Beaumont-Dark (Birmingham, Selly Oak) : Does my right hon. Friend accept that there should be some sympathy with the Leader of the Opposition because of the excellent situation resulting from my right hon. Friend’s G7 talks and negotiations? This whole point is meant to cloud those negotiations. Is it not odd that the party that wants fully to support the Common Market is one reason why we have problems with the BCCI? Is it not odd that the Labour party is not willing to accept a full and independent discussion and inquiry, which will come to the truth without anyone being sheltered? How else can one explain the opportunism and muck-raking involved in raising this matter at this time?

    The Prime Minister : I am surprised at that, for the reasons which I set out earlier. The Leader of the Opposition wrote to me on Thursday about the benefit of setting up an inquiry without delay. For once, on this matter the right hon. Gentleman and I were in complete agreement. My right hon. Friend the Chancellor announced such an inquiry on Friday. The Leader of the Opposition then denounced it, and today we have heard what he has subsequently had to say.

    Mr. Michael Foot (Blaenau Gwent) : Can the Prime Minister tell us whether his proposed Citizen’s Charter, will deal with the growing menace, freshly illustrated today, of buck-passing Ministers in bank scandals?

    The Prime Minister : If the right hon. Gentleman and his party will stop devising artificial reasons for preventing us from getting on to the statement on the Citizen’s Charter, they will find out.

    Mr. Patrick Cormack (Staffordshire, South) : Will Lord Justice Bingham have the authority to investigate the manner in which so many people’s misery has been shamelessly exploited for political ends?

    The Prime Minister : The inquiry will be wide-ranging, but I should not imagine that Lord Justice Bingham will investigate that matter.

    Mr. Merlyn Rees (Morley and Leeds, South) : Would it not be normal practice for security information linking terrorism and a banking house to be passed to the Prime Minister of the day by the security services?

    The Prime Minister : As a former Home Secretary, the right hon. Gentleman knows as well as anyone in the House that I shall not answer questions in the House on security. I reiterate what I said a few moments ago – that any relevant material will be made available to Lord Justice Bingham’s inquiry, and that the outcome of that inquiry will be published.

    Mr. Andrew Hargreaves (Birmingham, Hall Green) : Does my right hon. Friend agree, and will the House accept, that although the BCCI has had a suspicious reputation for many years in banking circles, it was at the prompting of the Bank of England that the Sheikh of Abu Dhabi was persuaded to mount a refinancing of the bank to lead it back to the straight and narrow, and that when that proved to have failed, and fraud was revealed, when the Bank of England considered that it might have sufficient evidence to stand up in court it acted promptly? Does my right hon. Friend agree that it is not the job of the Government or of Ministers to pre-empt the Bank of England in such matters?

    The Prime Minister : That is entirely right. The moment that there was evidence of fraud, the Bank of England acted very promptly indeed, and so did the Government.

    Mr. John Evans (St. Helens, North) : How will Lord Justice Bingham be able to compel foreign nationals to attend his inquiry to give evidence?

    The Prime Minister : This will be an inquiry into the regulators, not into foreign nationals.

    Sir Nicholas Fairbairn (Perth and Kinross) : As we are informed by the press that the shadow Chancellor of the Exchequer, the right hon. and learned Member for Monklands, East (Mr. Smith) is for ever dining or lunching in the City of London, is it not remarkable that he was not aware of the alleged – [Laughter].

    Mr. Speaker : Order. Will the hon. and learned Gentleman come to his question?

    Sir Nicholas Fairbairn : – crime, and that the Opposition never once raised the matter, although they say that it was so obvious?

    The Prime Minister : My hon. and learned Friend makes his point pertinently in his own way. It is indeed a surprising omission, and I can confirm that, so as far as I am aware, I have received no letter from the right hon. and learned Member for Monklands, East (Mr. Smith).

    Mr. Ron Leighton (Newham, North-East) : Is it not the case that none of the big City players or institutions have lost money in the debacle, because none of them has done business with the BCCI for many years, because of its unsavoury reputation? Why was that information kept within a small charmed circle and not made available to my constituents, who have lost their businesses and their savings?

    Mr. Speaker : Order. I interrupt the hon. Gentleman to remind him that the statement was about the inquiry and not about the bank itself.

    Mr. Leighton : Why was that information kept not only from my constituents, but, apparently, from the Prime Minister when he was Chancellor of the Exchequer?

    The Prime Minister : As you, Mr. Speaker, have just said, I have no knowledge of other banks’ relationships with the BCCI. The inquiry will concern what knowledge the regulators had, when they had it and whether that knowledge was properly handled.

    Mr. Andrew Rowe (Mid-Kent) : As my right hon. Friend will have gathered from a number of questions today, there has been anxiety on both sides of the House about whether the approach of 1992 and all that follows from it will strengthen or weaken the controls over banks registered in places such as Luxembourg. Will the inquiry examine the impact that the European Community will have on such regulations, and can he assure us that it will strengthen them?

    The Prime Minister : There are generally very high standards of regulation in Europe. Clearly we shall have to take account of them when we study the report – but these are matters that will need to be considered afresh in the light of the sophisticated but serious fraud that has been perpetrated by the BCCI.

    Although people may regard it as entirely right, as I do, that the inquiry should take place, we should never overlook the fact that this was a sophisticated and detailed fraud.

    Ms. Marjorie Mowlam (Redcar) : Will the Prime Minister confirm that the results of the inquiry will be published before the next election?

    The Prime Minister : I shall publish the results of the inquiry as soon as Lord Justice Bingham presents them to me. I hope that he will be precipitate and that he will speed ahead with his inquiry. We shall put no impediments in his way.

    Mr. Ian Bruce (South Dorset) : Will Lord Bingham be able to look into the way in which it appears that the BCCI has been able to do so much business with local councils? Will he be able to call a senior Labour councillor from Bradford, who was apparently selling for the organisation for a number of years?

    The Prime Minister : I can answer for Government officials, for the regulators and for the Bank of England. They will all be available; others must answer for themselves.

    Several Hon. Members rose —

    Mr. Speaker : Order. I remind the House that this is a private notice question. Furthermore, there is a debate on this very matter later today. I shall call for three more from each side and then move on. We have two other statements today as well. I call Mr. Bell first.

    Mr. Bell : The House will accept that the Prime Minister did not see the auditors’ reports by Price Waterhouse. May we take it that the terms of reference of the inquiry will be as we have heard them today; and will Lord Justice Bingham be able to look at the competence of a whole series of Ministers of the Crown, including the Secretary of State for Employment, who sent the letter to the wrong address, the former Secretary of State for Trade and Industry, who did not get the letter, the former Chancellor of the Exchequer, who claimed that he had no knowledge of it, and the present Secretary of State for Trade and Industry, who also claims that he had no knowledge of it? Does not this go to the heart of Cabinet government and responsibility to the House?

    The Prime Minister : I repeat that this was a serious fraud. The letter to which the hon. Gentleman referred contained no information previously unknown to the regulator, the Bank of England. I have already answered the substantive parts of the hon. Gentleman’s question several times, but I reiterate that it is clear from the terms of reference that Lord Justice Bingham will consider whether the action taken by the United Kingdom authorities was appropriate and timely.

    Mr. Alistair Burt (Bury, North) : Will the inquiry have powers to concern itself with the knowledge held by a certain number of investment brokers and with their relationship to the BCCI? In particular, will it be able to consider the amount of commission that they were paid by the BCCI to ensnare certain unwise local authorities–they never investigated the position–into investing in the bank?

    The Prime Minister : I think that the Government may wish to consider the implications of the point that my hon. Friend raises, but I am not sure whether it entirely falls within the remit of Lord Justice Bingham’s inquiry.

    Mr. Jim Sillars (Glasgow, Govan) : Is the Prime Minister aware that there is a significant difference between the public publication of the outcome of the inquiry and the public examination under oath of witnesses before the inquiry? Why have we not had the latter?

    The Prime Minister : For the very practical reason that I do not want to take any action that may prejudice criminal investigations by the Serious Fraud Office–there is a danger that that would happen. Given the seriousness of the fraud, I am sure that no one would want that.

    Mr. Jack Ashley (Stoke-on-Trent, South) : The Prime Minister said a moment ago that all relevant information would be made available to the inquiry. Did he know that the United States authorities asked for information from the Bank of England some two years ago and that the bank replied that it could not disclose confidential information because of the Banking Act 1987? Did the Prime Minister agree with that judgment? If he did, and if that excuse is used at the special inquiry, does not that mean that the truth will never be revealed?

    The Prime Minister : I have made it perfectly clear, and I reiterate to the right hon. Gentleman, that all the information required by Lord Justice Bingham will be made available to him. I understand that the American authorities are now satisfied with the assistance and information that they have had from us.

    Several Hon. Members rose–

    Mr. Speaker : Order. I called two Opposition Members, and I shall now balance that.

    Mr. Charles Wardle (Bexhill and Battle) : Does my right hon. Friend accept that the City of London understands the need for an inquiry and approves of it, but that it does not understand and will not condone the specious private notice question put down by the Leader of the Opposition?

    The Prime Minister : I believe that the City of London will make up its own mind about that matter, and I suspect that it will agree with my hon. Friend.

    Sir Peter Hordern (Horsham) : Will Lord Justice Bingham be empowered to investigate international bank regulation as well as our bank regulators?

    The Prime Minister : I think that he may well make recommendations, since the scope of his inquiry may lead him to believe that it would be appropriate for him to do so. Where he does so we shall of course consider those and, if appropriate, take them up with other bodies as well.

    Several Hon. Members rose–

    Mr. Max Madden (Bradford, West) : On a point of order, Mr. Speaker.

    Mr. Speaker : Not now. I again remind the House that we are to have a debate on this matter later.

  • PMQT Written Answers – 22 July 1991

    Below is the text of the written answers relating to Prime Minister’s Question Time from 22nd July 1991.


    PRIME MINISTER:

     

    Greenhouse Gases

    Mr. Frank Cook : To ask the Prime Minister what steps have been taken by Her Majesty’s Government to stabilise the concentrations of greenhouse gases in the atmosphere to combat global warming.

    The Prime Minister : The Environment White Paper (Cm. 1200) sets out the first set of measures to limit the United Kingdom’s carbon dioxide emissions and we will publish a report in the autumn showing how our efforts are being put into practice.

     

    Nuclear Weapons

    Mr. Cryer : To ask the Prime Minister if he will make it his policy to raise nuclear non-proliferation with his Chinese counterpart.

    The Prime Minister : As a depository state of the nuclear non- proliferation treaty, it is our policy to take every opportunity both to raise the importance of nuclear non-proliferation with all non-parties to the NPT and to lobby them to accede to the NPT as soon as possible.

    Mr. Cryer : To ask the Prime Minister what is Her Majesty’s Government’s current assessment of the capability of (a) Israel and (b) Pakistan to make a nuclear weapon.

    The Prime Minister : We have no firm evidence either to confirm or to deny rumours that Israel may have a nuclear weapons programme. As regards Pakistan, I refer the hon. Member to the reply my hon. Friend the Minister of State for Foreign and Commonwealth Affairs gave him on 27 February at column 497.

    Mr. Flynn : To ask the Prime Minister what recent ministerial meetings have taken place with other depository powers of the non-proliferation treaty; what matters relating to the treaty were discussed; and what future meetings he proposes to hold in 1991.

    The Prime Minister : The Government attach great importance to nuclear non-proliferation and the subject is frequently raised during bilateral ministerial meetings with the United States and the Soviet Union. However, no recent ministerial meetings specifically to discuss the NPT have taken place nor are any currently planned. Regular trilateral and bilateral meetings of the depository powers of the NPT take place at official level, most recently in June.

     

    Ministerial Visits

    Mr. Graham : To ask the Prime Minister how many Government Ministers have visited Renfrew, West and Inverclyde on official business since 1987; and if he will list the events and the Ministers concerned.

    The Prime Minister : The information can be obtained only at disproportionate cost.

     

    Mr. Colin Wallace

    Mr. Dalyell : To ask the Prime Minister if he will institute a full review, under the direction of the head of the civil service, of the case of Mr. Colin Wallace with a view to (a) bringing to book those responsible for conspiring to pervert the due process of the Civil Service Appeal Board, (b) ensuring that those responsible for misleading Ministers so as to mislead Parliament are disciplined and (c) that safeguards are put in place to prevent a repetition of these events.

    The Prime Minister : No. I do not accept the hon. Member’s description of what occurred. Safeguards are already in place to prevent a repetition of what went wrong.

     

    Army Boards of Inquiry

    Mr. John Browne : To ask the Prime Minister if he will bring forward legislation to require Army boards of inquiry in cases which may lead to claims for compensation (a) to provide full discovery of documents to those seeking to prove negligence, (b) to take evidence in person from all relevant witnesses and (c) to recommend ex gratia payments in special circumstances.

    The Prime Minister : There are no plans to introduce such legislation.

     

    Migrant Workers

    Dr. Godman : To ask the Prime Minister, pursuant to his answer to the hon. Member for Greenock and Port Glasgow on 1 July, Official Report, column 35, when the hon. Gentleman can expect to receive a letter on migrant workers; and if he will place a copy of his letter in the Library.

    The Prime Minister : I have replied to the hon. Member today.

     

    Government Expenditure

    Mr. Flynn : To ask the Prime Minister what are the sizes of the total committed and target expenditure by Her Majesty’s Government for the next financial year on (a) the environment, (b) overseas aid and (c) defence.

    The Prime Minister : Table 4.4 of the statistical supplement (Cm. 1520) sets out the latest plans for central Government expenditure on environmental services, overseas aid and defence in 1992-93. Data on local authority plans for expenditure on environmental services in 1992-93 are not available.

     

    EC Intervention Grain

    Mr. Michael : To ask the Prime Minister whether he will make it his policy to press for the grain stored by the EC to be used to combat the plight of people who currently face starvation in Africa.

    The Prime Minister : The European Commission is already using substantial quantities of grain drawn from intervention stocks to meet the needs of the special programme of food aid for Africa which was agreed in May. We strongly support this, when appropriate cereals are available and their use is cost-effective. Many surplus commodities held in stock, including cereals such as barley are, however, not generally suitable for use as emergency food aid.

     

    Bank of Credit and Commerce International

    Mr. Vaz : To ask the Prime Minister, pursuant to his answer of 17 July, what was the actual date on which he was told of the fraud.

    The Prime Minister : I was informed on 28 June.

    Mr. Vaz : To ask the Prime Minister, pursuant to his answer of 17 July, what action he took, with regard to BCCI, following the information given to him that there was fraud.

    The Prime Minister : The action, following the uncovering of the widespread fraud, was for the Bank of England, using its statutory powers. The Government entirely supported the action they proposed to take.

  • PMQT Written Answers – 19 July 1991

    Below is the text of the written answers relating to Prime Minister’s Question Time from 19th July 1991.


    PRIME MINISTER:

     

    Iraq

    Mr. Flynn : To ask the Prime Minister what representations he has received from Oxfam on the present state of malnutrition and risk of epidemic disease in Iraq.

    The Prime Minister : I have received no direct representations from Oxfam. I am aware of its concerns, which were discussed by my right hon. Friend the Minister for Overseas Development during a visit to Oxfam on 10 July.

     

    Wild Birds

    Mr. Wray : To ask the Prime Minister what action Her Majesty’s Government are taking to curtail the trade of wild-caught birds into (a) the United Kingdom and (b) EC countries.

    The Prime Minister : We have asked our scientific advisers, the Joint Nature Conservation Committee and the Royal Botanic Gardens, Kew, to review the evidence as to whether the trade in wildlife is compatible with maintaining the populations of species at satisfactory levels. We will consider, in the light of their findings, whether any changes in existing conservation controls are required. Negotiations are continuing on Community proposals for the protection of animals during transport.

     

    Trident

    Mr. Frank Cook : To ask the Prime Minister, pursuant to his answer to the hon. Member for Oxford, East (Mr. Smith), Official Report, 27 June, column 512, what factors he took into account in reaching his assessment that the introduction of Trident in the mid-1990s will provide the minimum capability necessary to maintain an effective independent deterrent into the next century; and what weight he gave in making this assessment to the United Kingdom obligations under the nuclear non-proliferation treaty.

    The Prime Minister : I refer the hon. Member to Defence Open Government Documents 80/23, 82/1 and 87/01 available in the Library.

     

    Genocide Convention

    Mrs. Clwyd : To ask the Prime Minister further to his oral answer to the hon. Member for Liverpool, West Derby (Mr. Wareing) of 16 April, Official Report, column 162, what legal advice he has sought on the genocide convention in respect of Saddam Hussein.

    The Prime Minister [holding answer 17 July 1991] : I refer the hon. Member to the answer that I gave to my hon. Friend the Member for Norfolk, North (Mr. Howell) on7 May at column 390.

     

    Housing

    Mr. John Home Robertson : To ask the Prime Minister if the Government has any plans to provide any special assistance to local authorities, housing associations or other providers of housing to meet the housing needs of service men and their families returning to civilian life as a consequence of “Options for Change”.

    The Prime Minister : The details of the force reductions required as a result of “Options for Change” are still being examined. We are considering how to deal with the housing implications as part of this work.

  • Mr Major’s Comments on the G7 – 19 July 1991

    Below is the text of Mr Major’s comments on the G7, made in an interview held in London on Friday 19th July 1991.


    QUESTION:

    [Mr Major was asked about whether the third world countries had been ignored at the G7 conference].

    PRIME MINISTER:

    It is certainly not true, the countries in the world that will most gain from an increase in world trade, the opening access to markets and stability of inflation and growth are Third World countries and then of course, in terms of the very poorest Third World countries there was perhaps the biggest advance we have seen at any G7 meeting ever and that is the agreement to go a long way beyond Toronto terms in writing off the debt of the very poorest countries.

    So I do not agree with that analysis at all and the point about opening market access is absolutely critical to the Third World, there is no point in the industrialised world providing aid to the Third World and then closing their markets to the products of the Third World, that is more damaging than anything else. So I think it was a very good summit for the Third World.

    QUESTION:

    [Mr Major was asked if the Soviets had left the G7 conference empty-handed].

    PRIME MINISTER:

    Only those who wanted to say that said that, only those who were pre-programmed to think that, that is not the view of Mr Gorbachev, it is not the view of the Soviet Union and they of course have the principal interest in this. What the Soviet Union wanted was to establish a continuing dialogue with the Group of Seven, that is what we have established. It was literally an historic meeting with President Gorbachev the other day and for the first time there is to be a direct dialogue between the G7, the seven most powerful industrial nations in the world, and the Soviet Union. Now I think that is good for the Soviet Union, I think it is good for the G7 and I actually think for wider political reasons it is very good for everybody else as well. It is the sort of dialogue between the major powers in the world that the rest of the world has asked to see for a long time.

    QUESTION:

    [Mr Major was asked if that would improve the short-term situation in the Soviet Union].

    PRIME MINISTER:

    The short-term crisis in the Soviet Union is a crisis that will be solved within the Soviet Union. What we have said is that we can enhance technical co-operation, we are going to enhance technical co-operation. I announced a very considerable enhancement, a doubling in fact, of our own Know-How Fund just yesterday, the day after President Gorbachev came here. And on wider matters it is prudent, most people think, to discuss these matters and to determine what needs to be done and that is what we are doing.

  • Mr Major’s Commons Statement on the Group of Seven – 19 July 1991

    Below is the text of Mr Major’s statement in the House of Commons on the Group of Seven meeting, given on 19th July 1991.


    PRIME MINISTER:

    The Prime Minister (Mr. John Major) : With permission, Mr. Speaker, I will make a statement on the economic summit held in London from 15 to 17 July, and the subsequent meeting with President Gorbachev. I was accompanied at the summit by my right hon. Friends the Foreign Secretary and the Chancellor of the Exchequer. The economic declaration and the separate political declarations issued at the summit have been placed in the Library of the House.

    The themes of this summit were “Building World Partnership” and “Strengthening the International Order”. Our common aim was to build on the movement towards freedom, democracy and the open economy which was the theme at last year’s Houston summit. I believe that we achieved valuable and productive results. In the political discussion, there was full support for our proposal for a United Nations register of arms sales. We agreed to consult on the guidelines that apply to conventional arms sales, and we agreed on restraint in the transfer of advanced technology weapons. We agreed also that donor countries should take account of military expenditure when deciding on aid programmes. We also agreed a number of steps in preventing the proliferation of nuclear, biological and chemical weapons. We agreed that we should make preventive diplomacy a top priority in the United Nations. We proposed the establishment of a United Nations disaster relief co-ordinator so that the United Nations can in future take the early action that has sometimes been missing in the past.

    We agreed also on the need for confidence-building measures by both sides in the Arab-Israel dispute, including the suspension of the Arab boycott and of the Israeli policy of settlement in the occupied territories. We encouraged South Africa to pursue policies that will permit normal access to all sources of foreign borrowing. That is vital to enable the economic growth that will be necessary for a successful conclusion to the political negotiations.

    In our debate on the world economy, we recognised increasing signs of economic recovery. These are welcome, but require us to maintain policies aimed at sustained recovery and price stability. This means prudent and vigilant fiscal and monetary policies, to bear down on inflation.

    All the summit leaders recognised that the world cannot afford a failure in the Uruguay round of trade negotiations. We committed ourselves to completing the round by the end of this year. Crucially, we committed ourselves to remain personally involved to ensure that that happens to resolve any disputes. Action will be needed on services, intellectual property, trade access and agriculture. We reaffirmed our commitment to support reform in the countries of central and eastern Europe. For them, trade access is vital. We cannot encourage them to build market economies and then deny them a marketplace in which to sell their goods. The European Community has led the way in offering access through the association agreements which are now being negotiated.

    We devoted a lot of time to the problems of developing countries and secured agreement on the need for additional debt relief measures for the poorest, most indebted countries, going well beyond the Toronto terms agreed in 1988. I have been pressing for this since I launched the Trinidad initiative as Chancellor.

    At the summit, we committed ourselves to work for a successful United Nations conference on environment and development in June next year. By the time of the conference, we aim to have achieved, in particular, a framework convention on climate change and agreement on principles for forest conservation. We also hope to negotiate by the end of next year a framework convention on bio-diversity. We agreed also to support financially the implementation of the preliminary steps of a pilot programme for the conservation of the Brazilian rain forests.
    Earlier summits have stimulated effective action in tackling the trade in illicit drugs. This year, we asked the Customs Co-operation Council–on the basis of an initiative by the United Kingdom–to intensify its work and liaise with international traders and carriers to curb the spread of drugs.

    These global issues require the involvement of all. Developing countries and east European nations are playing an increasingly active part. But one great country has been until now largely detached from the international economic system. That is the Soviet Union. We had a productive, substantial session with President Gorbachev. It was an historic occasion. The emphasis was on informal, frank and direct discussions.

    We reached agreement on six specific points. The first was special association with the International Monetary Fund and the World bank. Both the fund and the bank have a wealth of experience in helping Governments to work out their own economic reform programmes, especially in the crucial areas of fiscal, monetary and structural policies.

    Secondly, the international institutions–the Organisation for Economic Co-operation and Development and the European Bank for Reconstruction and Development–as well as the IMF and the World bank–are to be asked to work closely together in their support of the Soviet Union. They can provide the Soviet Union with practical advice, know-how and expertise to help create a market economy.

    The third point was intensified technical assistance. We believe that there should be greater co-operation in the following sectors in particular: energy, defence conversion, food distribution, nuclear safety and transport. Yesterday, I announced an increase in Britain’s know-how fund assistance from £20 million to £50 million.

    The fourth point was improved trade access to markets for Soviet goods and services. This would also help to attract more inward private investment.

    Fifthly, it was agreed that, as chairman of the summit, I should, on behalf of summit colleagues, follow up our meeting and visit Moscow before the end of the year to review progress. I look forward to doing so.

    Sixthly, we agreed, in response to President Gorbachev’s invitation, that Ministers of Finance and of Small Business should go to Moscow for discussions with their Soviet counterparts. My right hon. Friend the Chancellor hopes to do so soon.

    This was a landmark meeting with President Gorbachev. It will, I believe, be seen as a first step towards helping the Soviet Union to become a full member of the world economic community. I believe that it was a successful summit, and I commend the outcome to the House.

  • Mr Major’s Statement in Downing Street – 18 July 1991

    Below is the text of Mr Major’s statement given in London on Thursday 18th July 1991.


    PRIME MINISTER:

    Mr President, Mrs Gorbachev, colleagues and friends from the Soviet Union, My Lords, Ladies and Gentlemen. Welcome to luncheon today at Downing Street.

    We have a long tradition in London of welcoming the leaders of revolutions. Today I believe we have the enormous privilege of welcoming a man who has led one of the most remarkable revolutions of our century, and you are, Sir, immensely welcome.

    We take a great deal for granted. We have now come to take for granted freedom in Eastern Europe: we have come to take for granted German reunification: we have taken in our stride the demilitarisation of the Warsaw Pact; we have got used to talking of the Soviet Union as a friend and not as an opponent. And if may say so, since I see him here today, in Ambassador Zamyatin we have come to know a very true friend during his period in the United Kingdom.

    The events of the last few years have shown triumphs of the human spirit, they owed much to the pressure for change from within the Soviet Union and from outside the Soviet Union. But I believe that there was more to it than that. There are occasionally in our history, in our world, not just our domestic history, individuals who shaped the course of that history and you, Mr President, are one of them. You have had in recent years the wisdom and the vision to see the trend of events, you have had the enormous courage to defy the traditions and dogma of half a century and you have had the political skill, the political determination and the courage to carry that vision into reality.

    May I say, Mr President, also because I am delighted to see her here as a guest this afternoon, that my predecessor, Margaret Thatcher, has many of those same characteristics and I believe that the joint relationship that you and she struck up in the early 1980s played an immensely important part in the rapprochement between East and West over recent years and I believe history will record that fact very clearly indeed.

    I believe it is very hard to over-estimate the transformation that this change in relationships has brought about to world affairs. Just about a decade ago every international issue was a battleground of ideology. The watchword those days seemed to be problem making and not necessarily problem solving. And yet as a result of these changes we have seen in the last few years, the position is dramatically transformed. In the Middle East, in Southern Africa, elsewhere we are enjoying a whole new experience of cooperation between East and West at solving problems and not creating them.

    Perhaps in recent years the classic illustration of this was Iraq, an illustration of cooperation in the interests of safeguarding the communal peace. The Permanent Five members of the Security Council now work together as partners, it is I believe a most effective partnership and we hope it will be the driving force behind the regeneration of the United Nations in the years before us.

    That transformation, Mr President, was reflected clearly and unmistakably in the meeting which you had yesterday with leaders of the Group of Seven, a meeting foreshadowed by my predecessor in her remarkable speech at Aspen last year. And last night we here in the very next room around the table here in Downing Street to talk about world issues.

    People perhaps expect that. What, had they been present, they would not have expected quite so much was the immense extent to which the leaders there knew one another and enjoyed themselves as they discussed matters that were of both national and international importance. And I believe that closeness of personal relationship is a matter that can make more people sleep comfortably in their beds than would have been the case many years ago.

    We recognise. Mr President, we present who are the well-wishers of the Soviet Union, we recognise that your country faces formidable challenges. formidable political challenges and equally formidable economic challenges and the vastness of the task before you makes it difficult for us to know precisely where best we can give our help. But I believe there is a common determination to help, not just in this country where I can promise you that determination is very real, but amongst all of us in the G7. And to do so not just in terms of words but in practical ways, through technical assistance, through links between the Soviet Union, the IMF, the OECD, the European Bank for Reconstruction and Development and the World Sank itself,

    We recognise there is no magic prescription either within the Soviet Union or beyond the Soviet Union. But there is I think a world of difference in attitude, a world of difference between polite, dispassionate applause and the aggressive engagement of countries throughout the world who see themselves as we do, as friends of the Soviet Union committed to the success of the reforms in the Soviet Union.

    And that partnership, that new and growing partnership characterises our bilateral relationships as well. Many of my guests here today, Mr President, are very closely involved in British cooperation with the Soviet Union, cooperation which can only grow as we wish to see it grow as a result of the processes of reform. Given the right environment, British companies will be keen to increase their investment, keen to help mobilise your country’s great reservoir of human skills and natural resources and you and many others in authority throughout the Soviet Union are I know striving even now to create precisely that environment.

    The people in this room and millions I believe beyond it, Mr President, want to take part in your transformation to a market economy. I believe a lot of our own experience will be relevant to you as well, so we are helping in that transformation, in projects like food distribution, energy, financial services and the creation of small businesses. And British companies, I am delighted to say, are directly involved and the presence here of many of our leaders of commerce and industry illustrates that point very clearly. For this is a partnership in perestroika, a partnership from which both of us and both our countries have a great deal to gain.

    No-one here has any illusions, a hard road lies ahead for the Soviet Union. Democracy, as Winston Churchill once memorably said, is the worst form of government except For all the forms we have tried in our history. You, Mr President, know that the Soviet Union has tried other forms and has found them wanting. And you, Mr President, had the courage to recognise that and to recognise the hardship and injustice which other nations had incurred as a result of that.

    In today’s world the fates of East and West, of North and South cannot be divorced, they are bound together inextricably in the decisions that are made by the great nations. Yesterday in London we showed that that was understood fully in the West as well, in the meeting that you had with the leaders of the Group of Seven. It is my belief that that meeting marks a new chapter in Soviet relations with the industrialised Western world.

    Today in London we are forging a further link in that relationship , a further link in the chain of Anglo-Soviet friendship and cooperation in the future. I believe it is a link that will be immensely warmly welcomed in this country and I have no doubt from what you have had to say to me this morning, immensely warmly welcomed throughout the Soviet Union as well.

    My Lords, Ladies and Gentlemen, we have some very welcome guests here today, may I ask you to rise and drink to President Gorbachev and to Mrs Gorbachev, to the people of the Soviet Union and to friendship and partnership between our two great countries. The President and Mrs Gorbachev.

  • Mr Major’s Joint Statements with President Gorbachev – 18 July 1991

    Below is Mr Major’s statement made on Thursday 18th July 1991 with the Russian President, President Gorbachev.


    PRIME MINISTER:

    Good afternoon! We have had a series of discussions today. The President and I had the opportunity of around two hours discussion before luncheon, further discussion through luncheon and with a large number of people from business, commerce and industry attending luncheon as well and after luncheon, we have had the opportunity of a Plenary Session with our Finance and Economic Ministers, our Employment Ministers and our Foreign Ministers as well, so it has been a very productive and worthwhile series of exchanges.

    In our discussions today, apart from a range of bilateral matters, we have also discussed how we carry forward the Group of 7 remit and discussed some of the ground rules for my forthcoming visit to Moscow some time this side of Christmas. We have also agreed, in order to carry this debate forward, that Norman Lamont, the Chancellor of the Exchequer, will visit Moscow very speedily indeed. Dates are not yet finalised but I hope that the Chancellor will be able to go before the end of July to spend some time in the Soviet Union and to carry these discussions forward.

    I should add also that a very senior mission from the Department of Employment will in fact be leaving for the Soviet Union this Sunday in order to examine small business and other business opportunities that exist between the two countries.

    I also took the opportunity this morning in my discussions with President Gorbachev of announcing that we will be extending and increasing the Know-How Fund that exists to encourage small and growing enterprises in the Soviet Union. We will be increasing the time-scale of the Fund initially from two years to three years and doubling the size of the Fund to make a further small contribution towards assisting the establishment of a private sector and a liberal market economy in the Soviet Union.

    Both the President and I saw these discussions as but the beginning of a continuing dialogue. We examined some very practical and very pragmatic ways forward and if I may speak for myself, I found them extremely useful discussions and I look forward to resuming them in Moscow later this year.

    I will now invite the President to say whatever he would wish!

    PRESIDENT GORBACHEV:

    My task has been made easier by the fact that the Prime Minister covered the most important things.

    I wish to add that we lost no time and at the beginning of our morning session we gave some thought to what we should do next so that there is practical continuation of the agreement that was reached yesterday at the G7 meeting.

    The British-Soviet dialogue has a merit on its own and we are fully aware of the contribution that the British-Soviet dialogue that has been intensifying over the past few years made to the creation of the atmosphere that we witnessed these past few days and now I see that this dialogue will receive another no less important dimension given the fact that Mr. Major was instructed by the G7 to act in another capacity – not in another paid position but in another capacity. This is a new capacity which requires a lot of imagination and a lot of innovative approach to problems because what we are doing now is laying down bricks in the foundation of future cooperation.

    We sensibly discussed all these matters with the Prime Minister and when we had the Plenary Session attended by our Ministers we were very pleased to note that our Ministers covered the same subjects so we have received a signal from the Seven and we started moving along and this is something that I welcome very much.

    These past few days in the framework of the G7 meeting and also in the framework of the bilateral meeting we have seen a great desire on the part of the British side to provide a propitious atmosphere for our contacts and also to provide appropriate ground for our future joint work. I wish to thank the Prime Minister and his colleagues for a very active involvement in all that effort.

    PRIME MINISTER:

    Mr. President, thank you very much. I am afraid the President and I are due in the House of Commons in just four minutes so I will take just two questions if I may.

    QUESTION:

    [In Russian, not interpreted]

    PRIME MINISTER:

    The answer to that question is that Soviet-British relations are very good and they are getting better.

    PRESIDENT GORBACHEV:

    I may add that the business communities of our two countries have many projects lined up and the scope of our cooperation is likely to grow and intensify very fast. What we need is removal of the remaining impediments in the way of that cooperation. Any restrictions of the COCEM (phon) type restrictions does not allow us to use new technology projects that are being offered and of course no-one would be content with some outdated old-type projects.

    QUESTION:

    Why do you think Fidel Castro can continue to survive without implementing democratic reforms such as perestroika and glasnost and why does the USSR continue to aid Castro when he has openly criticised you and the countries from Eastern Europe for deviating from Communist teachings?

    PRESIDENT GORBACHEV:

    You know, I would do a lot of stupid things really if I were to sever relations with countries whose leaders criticised me and those stupid things that I would do would apply not only to international affairs but also to the domestic situation in my country so I would rather not do it.

    My second point is that you must show respect for the Cuban people. I think the Cuban people deserve that and it is for the Cuban people to choose freely and to decide whatever questions they may face.

  • PMQT Written Answers – 18 July 1991

    Below is the text of the written answers relating to Prime Minister’s Question Time from 18th July 1991.


    PRIME MINISTER:

     

    Engagements

    Mr. Harry Greenway : To ask the Prime Minister if he will list his official engagements for Thursday 18 July.

    Mr. MacGregor : I have been asked to reply.

    My right hon. Friend the Prime Minister is conducting bilateral discussions with President Gorbachev.

     

    Tesco, Sheffield

    Mr. Bill Michie : To ask the Prime Minister if he will make an official visit to Meadowhead, Sheffield to discuss with local residents and the developers of the proposed Tesco’s superstore the implications of his newly announced environmental initiatives for such developments.

    The Prime Minister : I have at present no plans to do so.

     

    United Nations Environment Conference

    Mr. Flynn : To ask the Prime Minister what proposals will be put forward by Her Majesty’s Government to the United Nations conference on environment and development in Rio de Janeiro in June 1992.

    The Prime Minister : We are consulting widely in order to prepare our position towards the United Nations conference on environment and development, in particular the proposed action plan, agenda 21, which will be discussed at the preparatory committee next month.

     

    Manchester Olympic Bid

    Mr. Alfred Morris : To ask the Prime Minister what is his policy on further help for Manchester’s bid to host the Olympic games ; and if he will make a statement on both the help so far given and that which might be considered.

    The Prime Minister : The Government welcome Manchester’s bid to host the Olympic games. The Minister for Sport has already met the chairman of the bid committee and representatives of the British Olympic Association and has assured them that the Government stand ready to discuss ways in which it might help promote the bid. I plan to meet representatives of the bid committee in September and will consider any suggestions they may have.

     

    Youth Training

    Mr. McLeish : To ask the Prime Minister if he will list (a) the number of youth training places in the Cabinet Office and (b) the number of places occupied in May for each of the years 1989, 1990 and the current year.

    The Prime Minister : There have been no youth training places in the Cabinet Office. However, an active work experience programme for 15 and 16- year-olds has been in operation for several years.

    Mr. McLeish : To ask the Prime Minister if he will list (a) the number of youth training places in his office and (b) the number of places occupied in May for each of the years 1989, 1990 and the current year.

    The Prime Minister : There have been no youth training places in my office.

  • PMQT – 18 July 1991

    Below is the text of Prime Minister’s Question Time from 18th July 1991. John MacGregor responded on behalf of John Major.


    PRIME MINISTER

     

    Engagements

    Q1. Mr. Hinchliffe : To ask the Prime Minister if he will list his official engagements for Thursday 18 July.

    The Lord President of the Council and Leader of the House of Commons (Mr. John MacGregor) : I have been asked to reply My right hon. Friend the Prime Minister is conducting bilateral discussions with President Gorbachev.

    Mr. Hinchliffe : In view of the embarrassing revelations that the Secretary of State for Employment knew in June 1990 of possible embezzlement and fraud at BCCI and that the Department of Trade and Industry stated that it has not received the letters which the right hon. and learned Gentleman says he sent to it on the matter, will the Leader of the House, as a matter of urgency, set up a full and independent inquiry into the whole sorry affair?

    Mr. MacGregor : My right hon. and learned Friend the Secretary of State for Employment received a letter from the BCCI staff which primarily expressed concern about redundancy arrangements at the bank. He received also a copy of a covering letter which the association sent to the right hon. Member for Chesterfield (Mr. Benn). My right hon. and learned Friend wrote to the right hon. Member for Chesterfield on these matters and, as far as I know, the right hon. Gentleman did not come back to him on them.

    As for the second part of the hon. Gentleman’s supplementary question, I understand that the matter is being looked into at this very moment.

    Sir Fergus Montgomery : To ask the Prime Minister if he will list his official engagements for Thursday 18 July.

    Mr. MacGregor : I have been asked to reply.

    I refer my hon. Friend to the reply that I gave some moments ago.

    Sir Fergus Mongomery : Does my right hon. Friend agree that if a member of the Cabinet was accused publicly by his colleagues of being unwise, unprincipled and responsible for confusion, he should do the decent thing and resign? If he agrees with that principle, and if he has noticed an item on the front page of The Guardian, should not the shadow Foreign Secretary resign?

    Mr. MacGregor : I say to my hon. Friend– [Interruption.]

    Mr. Speaker : Order. I think that the supplementary question was in order.

    Mr. MacGregor : I cannot imagine any of my colleagues saying such a thing about any member of the Cabinet. If my hon. Friend is referring to the comments in the press this morning of the hon. Member for Kingston upon Hull, East (Mr. Prescott) about the right hon. Member for Manchester, Gorton (Mr. Kaufman), I was interested that he said,

    “Everybody knows”–

    this is the statement on defence–

    “it’s a policy change, but no one is admitting it.”

    If the right hon. Gentleman says, “We will not get rid of nuclear weapons under any circumstances”, that really is a change. This demonstrates that the Labour party– [Interruption.]

    Mr. Speaker : Order. The Lord President should relate his reply to Government policy.

    Mr. MacGregor : Government policy is very clear on the nuclear question, but the Opposition cannot, even now, give a simple answer to a simple question about their defence policy.

    Mr. Hattersley : I look forward to receiving a simple answer to a simple question. Does the Leader of the House share the view expressed by the director general of the Confederation of British Industry on the “Today” programme this morning that Britain is no longer suffering from a depression but from a slump?

    Mr. MacGregor : I share the view– [Laughter.]

    Mr. Speaker : Order. This takes up a lot of time.

    Mr. MacGregor : I will give the right hon. Gentleman a simple answer to his question. The CBI’s director general said on the “Today” programme this morning :

    “The manufacturing side of our economy is in much better international shape than it’s been for many years.”

    That is a much simpler answer than the right hon. Gentleman and other Opposition Members have given on the nuclear issue for many months.

    Mr. Hattersley : It may have been a simple answer to someone’s question, but not mine. Can the Leader of the House attempt to justify his evasive answer having seen, as I suspect he has, the European Community’s judgment on the British economy? It is that British investment will fall next year, while German investment will increase by 6 per cent. ; and that unemployment in Great Britain will rise to more than 3 million next year, accounting for more than half the total increase throughout the whole Community. If that is not a slump, how would the right hon. Gentleman define one?

    Mr. MacGregor : We made it clear in the Budget forecast that recovery would begin in the second half and that view is shared by the CBI and the Organisation for Economic Co-operation and Development. As to the European Commission’s predictions on unemployment, I point out that it does not have a good record of making accurate forecasts. It indicated that unemployment in Germany would rise and it has not; and that employment in France would grow and it did not ; and it asserted that training skill levels for school leavers were lower in West Germany than in Greece–and I do not think that anyone else believes that. I suspect that the Commission’s unemployment forecast will turn out to be as accurate as that of the right hon. Gentleman in the 1983 general election, when he forecast that unemployment in this country would rise to 4 million–and it never did.

    Mr. Hattersley : The Leader of the House does not seem to have a good record when it comes to remembering the Prime Minister’s forecasts. In the House last week, the Prime Minister revised his forecast for recovery from the second half of this year to round about Christmas. Is not the truth that now that the glitz and glamour of the G7 summit is over, we are back in the real world of Britain’s economic situation–and that real world is a catastrophe, caused by the Conservatives’ policy of the past 10 years?

    Mr. MacGregor : The most important things for long-term prosperity and for jobs are to get inflation down, as we are doing and which Labour singularly failed to do, and to keep public expenditure under control and at reasonable levels, which Labour also singularly failed to do. The right hon. Gentleman may remember that at the last general election, he committed Labour to increasing public expenditure by some £34 billion. Labour is at it again and that would be a real recipe for disaster for growth in the early part of the 1990s.

     

    Q3. Mr. Bevan : To ask the Prime Minister if he will list his official engagements for Thursday 18 July.

    Mr. MacGregor : I have been asked to reply.

    I refer my hon. Friend to the reply that I gave a few moments ago.

    Mr. Bevan : While we welcome the impending nuclear disarmament that will emanate from the G7 summit, does my right hon. Friend agree that Britain’s independent nuclear deterrent would be put at risk, and could lose all credibility, if we cancelled the fourth Trident submarine–as Labour proposes to do?

    Mr. MacGregor : I share my hon. Friend’s strong welcome for the agreement on the START negotiations that was reached yesterday and I am sure that the House shares that welcome. However, my hon. Friend was right to draw attention to the sham of Labour’s defence policy. Not only is it totally confusing, but although they will keep nuclear weapons for negotiations, on the other hand they totally undermine the credibility of our deterrent. Four Trident submarines are essential to ensure that one is on station all the time.

    Mr. Madden : Why are the Government trying to gloss over the background to the closure of the Bank of Credit and Commerce International? Why are they refusing to hold an inquiry into the Bank of England’s role? What advice did the Treasury give to local authorities around the country? Most of all, what did the right hon. Member for Cirencester and Tewkesbury (Mr. Ridley) do with the correspondence alleging corruption and negligence inside the bank which he apparently received from the present Secretary of State for Employment?

    Mr. MacGregor : There is absolutely no glossing over. Obviously, we are all concerned about what has happened to a number of small depositors and borrowers at BCCI. The important thing now is for the Bank and the liquidator to get on with the practical arrangements and to move as fast as possible. My right hon. Friend the Chancellor of the Exchequer has already said that he will be reviewing what happened and will see what lessons can be learnt from it. The hon. Member for Bradford, West (Mr. Madden) will be aware that the Treasury and Civil Service Select Committee is meeting next week and that the Governor of the Bank of England will give evidence to it. Obviously many questions can be asked about what has happened over that period. I can assure the hon. Gentleman that there is no question of trying to cover up and no question of a sham.

     

    Q4. Mr. David Nicholson : To ask the Prime Minister if he will list his engagements for Thursday 18 July 1991.

    Mr. MacGregor : I have been asked to reply.

    I refer my hon. Friend to the reply that I gave some moments ago.

    Mr. Nicholson : Does my right hon. Friend agree that if the European regional funds, from which businesses in my constituency are unlikely to benefit significantly, were massively increased, the result would be a heavy cost to the British taxpayer? Does he also agree that it would be the height of irresponsibility to recommend such a policy without working out or stating honestly its cost? Is not that what we have come to expect from the shadow Foreign Secretary and the Labour party?

    Mr. MacGregor : My hon. Friend is referring to some of the practical issues that arise out of moving very quickly to convergence and why it is right to take the view that the Government take in relation to economic and monetary union and moving to a single currency. If one moved to convergence very quickly and that required a very big increase in regional funds very early, it would mean taking more money from taxpayers in Scotland to give to Sicily.

     

    Q5. Mr. Salmond : To ask the Prime Minister if he will list his engagements for Thursday 18 July 1991.

    Mr. MacGregor : I have been asked to reply.

    I refer the hon. Gentleman to the reply that I gave a few moments ago.

    Mr. Salmond : What information, if any, was supplied by the Bank of England to Treasury Ministers, including the present Prime Minister, on the contents of the October 1990 Price Waterhouse report indicating serious fraud in BCCI? Does the Leader of the House accept that if it can be established that Ministers or the regulatory authorities had knowledge well before June this year of serious fraud in that bank, the Government cannot continue to wash their hands of the financial disaster facing depositors and local authorities?

    Mr. MacGregor : The hon. Gentleman is probably referring to the Price Waterhouse report of March 1990. He said October, but I understand that it was in March. We are probably talking about the same report. The Bank had given the Treasury explicit assurances that although previous audit reports showed evidence of poor banking standards and losses–this applies to all these reports–they provided no evidence on which it could act in respect of the widespread fraud that was subsequently uncovered in the section 41 report. The evidence of bad banking standards and losses was being tackled by injections of capital from shareholders and by substantial management changes. It was the change in management that ultimately led to the discovery of extensive fraud, which led to the section 41 investigation. That was the first time that the Bank had evidence of serious and widespread fraud on which to take action.

    Mr. Knapman : Does my right hon. Friend recall the question from my hon. Friend the Member for Romford (Sir M. Neubert) on Tuesday and the slur and slander by the general secretary of the Labour party on the President of the United States and particularly on the President’s manner of election? Has my right hon. Friend received any indication from the Leader of the Opposition that he wishes to dissociate himself– [Interruption.]

    Mr. Speaker : Order. This matter is not the Government’s responsibility. [Interruption.] This is taking time. Let us move on.

     

    Q6. Mr. Douglas : To ask the Prime Minister if he will list his official engagements for Thursday 18 July.

    Mr. MacGregor : I have been asked to reply.

    I refer the hon. Gentleman to the reply that I gave a few moments ago.

    Mr. Douglas : While not being too thirled to statistics, although they are important, will the right hon. Gentleman acknowledge that the rate of unemployment in the United Kingdom and Scotland is dramatically high and is producing great suffering? Will the Government and the right hon. Gentleman in particular stop behaving like a cross between a pit bull terrier and a Scot–a Scots terrier– [Interruption.] –the type of dog which would ravage us first and then scurry away to get the ambulance. When the ambulance man comes along, he pours on the iodine and says, “If it isn’t hurting, it isn’t working.” It is hurting, but it ain’t working because it is producing great suffering on the part of the people of Scotland and many unfulfilled opportunities.

    Mr. MacGregor : Obviously we regret any increase in unemployment, because it affects families very substantially, but it is important to keep the matter in context. If one looks at the other side of the coin, one will see that there are 1 million more jobs than there were in 1979. We have more jobs in this country than most other countries as a proportion of the working population.

    We are taking extensive measures to deal with unemployment, particularly the longer-term unemployed. It is significant that about half of all the unemployed find jobs within three months. It is also quite reasonable to point out that a wide variety of the measures that the main Opposition party is putting forward would increase unemployment, destroy part-time jobs, impose extra burdens on industry and therefore make the position much worse.