Tag: Economy

  • Mr Major’s Speech to South Wales Businessmen – 28 October 1994

    Below is the text of Mr Major’s speech to South Wales Businessmen Lunch made on 28th October 1994.


    PRIME MINISTER:

    I am delighted to be back in South Wales, an area full of innovation and enterprise. Wales has a great manufacturing tradition, of which we are all justly proud. I know British Steel, for example, don’t need telling that the steel industry is now highly efficient and is the largest manufacturing employer in the Welsh economy.

    The strength of Welsh manufacturing is unquestionable. Manufacturing output in Wales is growing at a rate twice as fast as the UK as a whole. I know that for this successful performance to continue the economic recovery experienced by the whole of the UK must continue. That is why the Government is committed to securing sustained economic growth with low inflation.

    The UK economy has been performing very well of late. Exports are up by 10 per cent over the past year, and are at record levels. Investment is up by over 5 per cent, and unemployment has been falling for almost two years now. Remarkably, output is growing by more than the rate of inflation. That doesn’t happen too often. In fact it has only done so on three occasions over the past 30 years.

    But the continued success of the British economy will only come about if we get two things right. First, the Government has to keep inflation down and retain control of its own finances. I know that some of you were surprised when the Chancellor raised interest rates just over a month ago. I fully supported that decision. Getting inflation down, and keeping it down, has been one of my top priorities since becoming Prime Minister. Stability is the best help the Government can provide to businesses.

    Second, the Government must adopt policies that work for business. That is why we will not sign the Social Chapter. And that is why we will not introduce a minimum wage.

    I know you understand the reasons for this approach in Wales. Developments like that at Pontprennau, on the outskirts of Cardiff, have only come about because businesses have been willing to step forward and take their share of the risks and rewards. The benefits will be considerable: a new link road between the M4 and A48, over 1,600 homes, a 90 acre business park and a 20 acre district shopping centre. And Pontprennau is not an isolated example. In Cardiff Bay, the Development Corporation have already identified sites where they want the private sector to take part in their unique regeneration programme. The Government has an important part to play in this regeneration but it cannot do it alone. That is why the Private Finance Initiative is equally important, not only in Cardiff, but throughout Wales. John Redwood has already announced his intention to attract £1 billion of private sector investment into the South Wales valleys to create more housing and employment.

    You don’t need me to tell you that Wales has also had great success in attracting foreign investment. This has meant an enormous boost to the local economy. The UK economy, and Wales in particular, has become a magnet for foreign investment in Europe. The UK is by far the largest recipient of inward investment into the European Union, and receives more than France and Germany combined.

    Like the rest of the UK, the Welsh economy is well-placed to take advantage of the lowest inflation for 27 years, the lowest interest rates for 17 years, improved competitiveness and economic growth in our main export markets. There is every indication that Welsh businesses are responding well. To take some recent examples, Nippon Electric Glass of Japan and Schott Glasverke of Germany are joining forces in a joint venture to manufacture cathode ray tubes. This significant development will bring £193 million investment and the promise of 750 new manufacturing jobs to South Wales. And, a recent trade mission led by the Welsh office to Korea and Taiwan returned with firm and potential orders worth £18 million.

    I could go on. A difficult time is over, and a better time lies ahead. After the long and bruising recession, British businesses have now regained their confidence. The last few years have not been easy, but by getting inflation and interest rates down we have laid the foundations for the steady and sustainable growth that we are now seeing. By working together we can make that growth last.

  • Mr Major’s Speech to the Institute of Directors in Belfast – 21 October 1994

    Below is the text of Mr Major’s speech, made to the Institute of Directors in Belfast on Friday 21st October 1994.


    PRIME MINISTER:

    Mr Chairman, Ladies and Gentlemen. It is very kind of you to let me address your institute for the second time this year. This hotel, the Europa hotel, has suffered in the bad times, but it has now put on a shining new face for the future. So I do not believe I could be in a more appropriate place for the announcements that I will have to make in a few moments.

    Nor do I think could I be with a more supportive audience. The business community as a whole in Northern Ireland has kept faith and has kept going through some difficult years, and it knows as well as anyone the benefits of peace. So let me on this occasion join the warm tributes to your Executive Director in Northern Ireland, John Gorman, to whom you are saying farewell at this particular lunch.

    From the moment I stepped into Downing Street I believed that the overwhelmingly majority of the people in Northern Ireland wanted peace. Over the years they have demonstrated this in countless ways – the remarkable peace movements of the 1970s, the many groups and individuals who have worked so hard to heal community divisions that have existed for so long.

    It was that conviction that gave birth to the Downing Street declaration. An opportunity for peace did exist and the Taoiseach, Albert Reynolds, and I both wished to take advantage of it. The Downing Street declaration recognised the rights of both main traditions in Northern Ireland, but it threatened the interests of neither, it showed that violence had no justification and it offered a route into legitimate politics for those who abandoned violence.

    When I spoke to you in March, many people had lost hope that the Downing Street declaration could lead to peace. I mention that only to remind everyone that we should not accept set-backs, there may be more, and if there are we should persist and overcome them. I expressed hope against the prevailing wind. Today there is a chance, a chance, not a certainty, that hope will become reality.

    Seven months after I last spoke to you, seven weeks after the IRA ceasefire, seven days after the Loyalist Paramilitary ceasefire, Northern Ireland is at peace. There is a different atmosphere. Fear has been lifted from daily life, people have begun to take the bars from their windows, trade in the high street has gone up by 6 percent in just a single month, and even sceptical commentators, commentators with years of history to support and justify their scepticism, are beginning to wonder whether perhaps a corner may truly have been turned. As for that, we shall see. But there has been a very encouraging beginning.

    But now we have to move on towards a full return to democratic life, towards a time when violence will be no more than a bad memory, towards a just and lasting peace.

    We have practical obstacles to overcome, some of them will be difficult. We also have history to overcome and that may be even harder. Old enmities, old suspicions, old fears still swirl around and obscure opportunities that lie ahead.

    We are right to be cautious, but there is no entirely risk-free approach. With care and with calculations we must judge the art of the possible and then deliver it. I cannot guarantee success but I do believe that the chances of success are better than for generations.

    Let me set out therefore the next stage that I propose to take. Our task is to make sure the violence is over for good. We must aim to make a return to violence unthinkable.

    Throughout these seven weeks Sinn Fein and the IRA have sought to convey the impression that the ceasefire is permanent, but they have not stated this unambiguously. Because they left scope for doubt, I resisted pressure to set an early date for exploratory talks. Instead we have reviewed their actions and these have been more compelling than their words. And as a result I am now prepared to make a working assumption that the ceasefire is intended to be permanent. This means we can move carefully towards the beginning of dialogue between Sinn Fein and the government.

    The basis for this dialogue is unchanged. There must be a genuine commitment by Sinn Fein to use and support only peaceful methods in a democratic political arena. We shall expect to see continuing practical evidence of this commitment. We shall not be able to proceed if it is called into question. But if we can continue reasonably to assume that Sinn Fein is establishing a commitment to exclusively peaceful methods, if the IRA continues to show that it has ended its terrorism, then we shall be ready to convene exploratory talks before this year is out.

    This preliminary dialogue between representatives of the government and of Sinn Fein will be crucial, it will explore how Sinn Fein can make a transition to normal political life, how it would be able to play the same part as the existing constitutional parties, how it could enter the political talks process itself.

    And we shall discuss the practical consequences of ending violence, most obviously how illegal weapons and explosives are going to be removed from everyday life in Northern Ireland. Peace cannot be assured finally until the paramilitaries on both sides hand in their weapons. This is a difficult issue but it cannot be ducked. We must consider therefore how guns and explosives can best be deposited and de-commissioned. These weapons are both north and south of the border so we shall be consulting the Irish government on a coordinated approach.

    It is through the political talks process that we wish to secure a lasting settlement, and I repeat today the promise that I have given before – when these talks between the constitutional parties and the two governments are concluded we shall seek the approval of the people of Northern Ireland for the outcome as a whole in a referendum. Their consent is essential.

    As you know, the British and Irish governments are working on a joint framework document. I shall be discussing it with the Taoiseach again on Monday at Chequers. I know in Northern Ireland that there is concern about the documents. Let me repeat, it will not be a blueprint, it is intended to help further discussion and negotiation and it will represent our joint understanding of what is most likely to secure widespread acceptance.

    When the document is finished we shall publish it for all to see. It will not be kept a secret with the danger that it will cause suspicions. As with the Downing Street declaration, everyone will be able to get a copy to see exactly what it says and exactly what it does not say. This way it should neither be misunderstood nor mis-interpreted.

    I am determined the people of Northern Ireland will have the chance to give their views, I want them to see that that document is faithful to the Downing Street declaration and to our unshakeable constitutional guarantee that their future is in their hands.

    The joint framework document concentrates on relations between the two governments and between Northern Ireland and the Republic. But as part of an overall settlement, the British government is also concerned with new arrangements for government within Northern Ireland itself. And this is a matter for discussion between the British government and the Northern Ireland parties. We therefore intend to publish simultaneously our own proposals on a possible way forward within Northern Ireland. These too, like the joint framework document, will be a guide for discussions and negotiations aimed at widespread acceptance. In this way the people of Northern Ireland will be able to see the full shape of a possible settlement, it is the overall shape of the whole package that must secure the consent of the people of Northern Ireland if it is to succeed.

    We want to restore local accountability. We shall therefore include proposals for an Assembly, drawing without attribution on the work done in the 1992 talks and the lessons of Michael Ancram’s continuing exchanges with the parties. And again we shall be seeking the basis for broad agreement, neither a purely internal solution, nor a return to domination of one side by the other would achieve this. Local democracy requires support right across the community.

    The loyalist ceasefire is very welcome. There are no circumstances whatsoever that would justify a resumption of their violence. The route to democratic politics is open to all who renounce violence and we of course want Loyalists to be able to express their views democratically.

    Therefore let me make clear today, once they have sufficiently demonstrated their commitment to exclusively peaceful methods, they can take part in public life. At the appropriate time the government will enter into contact with them. We will be looking for ways of taking their views into account in the talks process, we want to hear the concerns, not least the social concerns, of the communities from which they come.

    In matters of security we shall not take risks, we shall not make concessions to those who defy the law, we shall not lower our guard prematurely. But of course we wish to see Northern Ireland return to a more relaxed and more normal way of life.

    The ceasefire has already allowed the security forces to respond to a diminished threat. Today, on their advice, the Secretary of State has rescinded all the remaining closure orders on border crossings. This will allow freer movement, although the security forces will continue to patrol the border for the time being.

    Exclusion orders have been another constraint required to counter terrorism. We hope that the day is approaching when they will no longer be needed. The numbers are already lower than they were when Parliament renewed the Prevention of Terrorism Act last March. Now that we are moving towards preliminary dialogue, I can announce that the Home Secretary has today lifted the orders which excluded Mr Gerry Adams and Mr Martin McGuinness from Great Britain. They are free to travel anywhere within the United Kingdom, provided they remain committed to the democratic process. Other exclusion orders will remain in place for the time being. But the Home Secretary and the Secretary of State for Northern Ireland will keep the need for them under review.

    Let me turn now to the policing of the streets and of the countryside. We had to deploy additional troops in Northern Ireland from 1969 in support of the police because of the level of violence. And in the years since then, the army has truly done an outstanding job for the people of Northern Ireland.

    While Northern Ireland remains a part of the United Kingdom there will always be a peace-time role for some members of the armed forces, just as there is in every other part of the United Kingdom. We shall keep as many policemen and troops as we need for as long as we need to protect the people of Northern Ireland. But the need for soldiers to patrol the streets will continue to be reviewed in relation to the threat, and it is our firm objective to return to exclusively civilian policing.

    Terrorism has prevented the Royal Ulster Constabulary from operating in the same way as police forces in the rest of the United Kingdom. Its officers over the years, time and time again, have shown extraordinary courage and tenacity. They have made many sacrifices, they have every reason to look forward to lasting peace and to the prospect of leading more normal lives themselves. They know that an end to the threat of violence will bring new challenges for them. They know they need to police by consent and that they will have our full support in seeking to achieve that.

    But let me make it clear here and now, no groups can or will be allowed to take the law into their own hands. All sections of the community must have confidence in the police and must enjoy equal protection from crime. In Northern Ireland the role and duty of enforcing the law must rest with the police and with the police alone.

    Peace of itself will give massive boost to Northern Ireland’s economy. Equally the chance of more prosperity, more jobs, better security for families must be the most powerful incentive for peace.

    I know that the business community is already preparing for new opportunities, so is the government in partnership with you. I can announce now that we will be convening a large investment conference here in Belfast in December. I hope that many of you will take part. We shall be asking the Institute of Directors and the CBI at national level to encourage all their members to look at investment opportunities here in Northern Ireland, we shall invite senior figures from the City of London and we shall also invite potential investors and business leaders from overseas, from Europe, from the United States and from the Far East.

    We are of course already in close touch with the European Commission. The President of the Commission has established a task force, a task force to look at new European Community programmes for Northern Ireland. This initiative aims to fund new projects to regenerate the city centres, it will focus on action to cut long term unemployment, attract inward investment and stimulate tourism to Northern Ireland. The details of the European Commission’s initiatives are still being worked out, in consultation with us and with others. From my latest contacts with Jacques Delors I am confident that this initiative will result in a substantial package of new measures and of new money for Northern Ireland. I say new money. The European Union’s programmes will be in addition to the British government’s own expenditure plans for Northern Ireland. These, as you know, have long been supported by the European Union’s structural funds. The Union has also increased its contribution to the international fund for Ireland.

    Let me make two further points on economic and social support. First, we have long recognised the particular needs of Northern Ireland, we have set public spending at a level well above the UK average and provided a subvention of over 3 billion pounds last year to finance this. The people of Northern Ireland will get our continued support in the future. We understand that they face exceptional economic and social difficulties, some will result indeed from the transition to peace, such as the consequences for employment of an end to terrorism. So let me to assure you that the government will take full account of Northern Ireland’s special needs in setting future levels of public spending for the Province. We want to help the Province enjoy higher levels of economic growth and much greater prosperity throughout the community in the years that lie ahead.

    Second, we need your ideas, the ideas of people throughout Northern Ireland on the projects we and the European Union should back and the support that we can most usefully give. So the government will now start consultations with business and financial interests in the Province.

    We shall also consult the leaders and Chief Executives of the local councils in Northern Ireland, they are in day to day touch with the people of Northern Ireland. So I intend shortly to issue invitations to them to come to meet me in Downing Street, I believe they can play a significant role in carrying forward our plans for a better future for all the people in Northern Ireland.

    From this moment on we are in a new phase of the peace process, a transitional phase which will lead to exploratory talks. For 25 years of violence has been the enemy of the progress in Northern Ireland. Think what opportunities have been lost, think what could have been done to advance all areas of life here were it not for the burden of terrorism that the Province has carried. Local democracy has been held back, a generation of politicians has been denied full responsibility. In the community walls have been going up where we should have spent the last 25 years breaking them down. In the economy, for every million pounds of investment that you have attracted there should have been many millions of pounds of investment. For every tourist there should have been 30. For every hotel, factory or shop repaired after a bomb, we could have built a new hotel or factory had there been no bomb.

    We cannot make up 25 lost years overnight, we shall have to make Herculean efforts, and that is the purpose of the initiatives that I have announced today, to begin to improve the lives of everyone in Northern Ireland as speedily and as comprehensively as we can.

    Above all, we must make the price of breaking the peace so high that there would be not a shred of sympathy, not a glimmer of support for anyone who ever again contemplated the use of violence. Every day without violence shows more clearly the benefits of peace.

    The future of Northern Ireland lies in the hands of the people of Northern Ireland, not just of the leaders, the leaders of the political parties, of the churches, of the business communities, who have always stood by peaceful methods, but it lies in the hands of all the people of Northern Ireland. I know that they want peace and they know that peace has not been brought through any secret deals or secret promises. They know of our commitment to the balanced and even handed principles of the Downing Street declaration, including consent and the search for agreement among all the people living in Northern Ireland. They will be invited to comment on the joint framework document and on our proposals for local accountability. They will be asked to vote on the outcome of the three stranded talks. They must establish a just basis for living together in the future, giving parity of esteem and equity of treatment to both main traditions, and enabling all law abiding citizens to live free for good from the threat of violence.

    Let me speak directly to each and every person in Northern Ireland. If you want peace, say so now, loudly. Do not sit back, join the crusade for the future. Go to your friends, go to your neighbours, go to anyone you know who may ever, if only for a minute, have supported violence. You have not had such a chance in years and you cannot afford to miss it. Let your voices be heard. Ultimately you, and you alone, the people of Northern Ireland, can ensure that Northern Ireland never goes backwards and yours will be the gain if that enterprise is successful.

  • Mr Major’s Speech to the 1994 Conservative Party Conference – 14 October 1994

    Below is the text of Mr Major’s speech to the 1994 Conservative Party Conference on 14th October 1994.


    PRIME MINISTER:

    Mr. President, the political landscape has changed in the last few years, and it’s changed again in the last few months. The language of politics is now Conservative language. With every speech and every copied aspiration, the Labour Party finally admit how wrong they have been for so long, and how right we have been.

    So forget the hype. It’s we who’ve changed the whole thrust of politics and moved it in our direction. We have won the battle of ideas, and it is an astonishing triumph.

    When the Labour Party consider what has happened, they may realise what they’ve done, because what they’ve done is to study our instincts and our attitudes and then go away and market test them. And when they’ve done that they’ve discovered what we told them long ago: that they are the hopes and dreams of the typical Briton. It’s a huge compliment to this party and we should accept it gratefully.

    But it’s one thing for the Labour Party to commit grand larceny on our language. It’s one thing for them to say what market research has told them that people would like to hear. But it’s quite another to deliver it. They have some hard questions to answer.

    If you talk of full employment, then you should say what you mean. And then you should explain how that could possibly square with the minimum wage and the Social Chapter, which sound comforting but are deadly to jobs. And if you talk of low tax and low spending, does that mean supporting Tory tax cuts and Tory expenditure reductions? As to that we shall see before the writ of this parliament is run.

    If you preach about community, then you shouldn’t grow politically fat on the politics of envy – and didn’t Blackpool reek of it last week? And if you’re going to attack over-mighty government and bureaucracy, then you shouldn’t promise Scottish and Welsh parliaments with more bureaucrats and more taxation.

    And if you do, you should answer the question: Will Scottish Members of Parliament be permitted to vote on matters in England that English Members of Parliament would not be permitted to vote on in Scotland? And if Labour plan a Scottish Parliament, will they plan also to reduce the number of Scottish MPs in the House of Commons at Westminster, or will they gerrymander the Commons to boost their own political chances?

    Mr. President, these are deep waters. So let Labour be the party of devolution. We are the party of Union, the party of the United Kingdom.

    Mr. President, I’ve relished this debate. These are great issues, but they are our issues, this is our ground, and upon this there is a battle to be fought that this party will undoubtedly win. So I have this advice for you: don’t waste time on the past – it’s gone. Out there, up and down the country, people are concerned about the future, not the past. That is where the political debate should be, and that is where I intend to take it in the months and years ahead.

    In politics, if you expect the unbelievable, then you’ll never be surprised. It is probable that at the next election, the government and the alternative government will both be talking Tory language. But there is a difference: only one will mean it. Buying Tory policies from Labour is like buying the Rolex on the street corner. It may bear the name, but you know that it isn’t real. Our task is to promote the real thing, and expose the counterfeit. We hear talk of a new Labour Party. A new Labour Party. These aren’t people without a past, lovable little extra-terrestrials beamed down for the duration.

    Mr. President, since 1979, we’ve beaten the old Labour Party, the very old Labour Party, the redesigned Labour Party and the new model Labour Party. And as for this new, “biologically improved” Labour Party, it may wash blander, but I would give it a shelf life of under three years.

    Mr. President, at Blackpool, Labour filched two of the principles on which we fought the last general election: opportunity and responsibility. But wasn’t it interesting that they left out two others: personal choice and private ownership. They’re vital to us.

    So socialism may be a bit out in Islington just now, but Conservatism isn’t off my agenda. As they so often invent what we think, let me tell them clearly what we stand for: we believe in free markets, we believe in private ownership. It doesn’t go against the grain for us to say so. It’s not a new Conservatism that we’ve just discovered, it’s one of the oldest principles of our party and we believe in it passionately.

    And because we’ve believed in it, millions of families up and down the land now have savings of their own: Granny bonds, TESSAs, PEPs, the hundreds of billions of pounds in the banks and building societies. It is our philosophy that has given people that choice and that security. That is the message that we must carry forward. Our opponents present ownership as if it was something selfish, self-centred, perhaps even greedy. Some people are all of these things, but most are not. People who have earned well, people who have saved, people who have inherited the fruits of a parent’s lifetime’s work are not the “undeserving rich”.

    No, Mr. Brown, they are deserving workers. How does Clause IV put it – “by hand or by brain”. So let me hammer the point home ever more clearly: we are the party of savings, of ownership, of property, of personal independence. We offer people choice: the liberty to grow, and yes, the liberty to make their own mistakes. We admire success in life, and we will never, never, never resent it in other people.

    We try to remove government from the everyday lives of people. We believe that every family should be entitled to enrich their own private corner of life, and then pass it on to their children without over-mighty taxation. That, Mr. President, is what Conservatism is about, and there is only one party in this land that truly believes it.

    Mr. President, I know when people hear the word “economy”, the spirits droop. They think they’re in for a lecture on the PSBR, GDP, and all the rest of it. Well, you’re normally right, but not today. I just want to say today that the word “economy” should lift the spirits and not depress them, because the great cries of lasting growth with low inflation, which we have sought for the whole of my adult lifetime, is now within our grasp. Whisper it gently, but we are now doing well as a country.

    For most people, it isn’t their everyday experience, not yet. But it will be, and I’ll tell you why. Britain is making more, selling more, exporting more. This time we have built a recovery to last, built on firm foundations, on export and investment. Month after month after month, exports from Britain have broken the record set the month before, and they did so again just last week.

    These islands of ours are exporting cameras to Japan – you did hear me right, cameras to Japan; computers to Germany; cars to America; clothing to Hong Kong, and Cosmetics to France. We know what we were told. We were told unemployment would go on rising to five million. It’s been falling for the best part of two years, and Michael Portillo announced another fall earlier this week.

    We were told we wouldn’t get interest rates down, but we have; that we couldn’t hit low inflation, but we have. These are the very things that bring security, make jobs safe, improve living standards and strengthen this country’s influence right across the world.

    What is the prize that lies ahead? Let me tell you what it could be. In 1954, in Blackpool, “Rab” Butler was speaking to this conference. Suddenly he said something quite extraordinary. He said that living standards could double in this country in 25 years. People scoffed, but he was right. For the country as a whole they did double in 25 years.

    So let us have the courage to look forward once again. If we are able to keep inflation down, as we must, and control public spending, as we must, what does that mean for our people? It means stronger growth, improving the services we care about – education, health, the police service; it means more money in people’s pockets and more free choice for those people.

    Britain has changed. It may not have been noticed but it has changed. Not for 30 years has this economy grown so much faster than prices. So let us bang the drum and say so. It’s time to put the marker down, but as Ken Clarke told you yesterday, we need to stick at it, and for this reason neither Ken nor I, ever again, want to go through the boom-bust cycle that causes so much pain and so many lost hopes for so many people up and down this country.

    And that is why in some ways we are a bit puritanical. That’s why we are so determined to control public spending, improve competitiveness, cut regulation, and let private enterprise build public wealth. That’s why we’ll be prudent about what we spend, cut taxes where we can, and above all build up the long-term health and strength of our industry and of our economy.

    Mr. President, it’s time for this country to set our sights high again. What “Rab” Butler saw was prophetic and positive. Let me echo it today. Because of what has been achieved, with the right determination, with the right policies, we have the chance once again to double our living standards in the next 25 years, and that is something that everyone in this country can feel good about and feel good today.

    Mr. President, I want to talk about education. How many people in this world are fulfilled, really fulfilled? How many do the jobs that they might do? How many have had their minds stretched and extended? “Not enough” is the answer. Not as many by hundreds of thousands as should have. That’s why education matters so much to me. I’m just burned enough to know a little about that. I left my chance late, so I did a lot of my schooling while off for a year with a shattered leg, in the company of Trollope, and Jane Austen, and Adam Smith, and a lot of dull but terribly useful books on banking. Better companions one never had, until now.

    But I was lucky. Not everyone is. It’s my personal ambition that everyone should have the same chance to rise to the top on merit. Never mind where they come from, what their parents income is, what their religion is, or what their colour is. These are irrelevant, and please God they will always remain irrelevant to the people of this country. What matters to me is that they have the same chance.

    Good schools can be a lifeline out of poverty, the ladder to a better life. That’s what our changes are all about: the curriculum, the testing, the league tables, the inspection, the new parental choice, the challenge to the old council school monopoly, the emphasis on better vocational education, and the creation of new universities. Mr. President, it is not reform for its’ own sake, it is reform to deliver higher standards for all our children.

    Bad teaching fails children. They may get through if they come from families with a social edge, a sophisticated home and the good books that go with it, but bad schooling falls most heavily on pupils who have none of these things – children from homes without a book in the house, from blaring day-long television homes.

    Mr. President, we are a national party, and these children are as much our responsibilities as are the higher climbers. If the school ladder’s all abstract theory and holds out no rungs of letters, facts and numbers, who loses? The children lose. The people who need our protection lose. The people easily defeated lose. The people who live at the bottom of the heap who deserve a chance to get off it lose, and it’s just plain wrong.

    And that is why I want teaching in the weaker schools to be levered up, because if it is, someone will get off the bottom of the heap, and if it isn’t that is where they will stay, probably for the rest of their lives. I will never accept that. I’ve no time for those who are complacent and oppose improvement, and all too often they are the high priests of the politically correct.

    They are the people who can afford the good things in life, who chortle away about our emphasis on basic standards and the three ‘R’s, and then move to a different catchment area, with better schools for their own children. They’re people who have in their own homes the books that they say other people’s children aren’t up to reading. They are the people I cannot take, the kind of people who have clambered up the ladder and then seem ever ready to kick it away from other people.

    Education’s there to lift the eyes, broaden the horizon, distinguish between the great and the trite, the right and the wrong. It’s there to unlock the gate to a better life, and by and large teachers deliver this. They have a hell of a job, but they can make the difference for children between apathy and despair, and seeing the remote but inviting light upwards and out.

    Teachers that do their work well, for heaven’s sake, teachers that do their work well, are the prime route out of the class trap. I care enough about teachers to give bad teachers a bad time, and I care about children enough to oppose sloppy, experimental teaching that ignores common sense.

    Up and down the country, dedicated teachers have worked hard to put our reforms in place. They haven’t always liked every aspect of them; so we’ve listened. Sometimes they have been right and we have changed our minds. Many teachers feel there’s been too much paperwork. I agree with them, and there still is.

    That’s why we’ve been working with them on slimming down the National Curriculum. We’ve now finished that job, and it’s been dramatically cut, and we’re now out to reduce much of the other paperwork that schools have to deal with. Teachers should be marking homework, they shouldn’t be doing it, and we’re determined that is how it will be. After the curriculum changes of recent years, teachers deserve stability, to be able to get on with their jobs without any more upheavals. So today I promise them this: there will be no further significant changes for the next five years.

    And there’s another area in which we must give teachers our full support. I’m disturbed by some of the stories I hear – too many stories to ignore – about violent attacks on teachers and false allegations against them. The teachers’ unions are concerned about these issues and so are we. In this area, the unions deserve our support and the unions will get our support. But education involves fun as well as facts. Schools are friendlier, less forbidding places than once they used to be, and I think that’s good. But they seem to have lost something. I don’t regard sport, especially team sport, as a trivial add-on to education. It’s part of the British instinct, it’s part of our character. Sport is fun, and it deserves a proper place in the lives of all our children.

    Of course it can’t supersede Maths and English, though how I longed for it to do so when I was at school! But it must take its proper place alongside them. We are therefore changing the National Curriculum to put competitive games back at the heart of school life. Sport will be played by children in every school, from five to sixteen, and more time must be devoted to team games. Many schools already offer at least two hours a week for sport and physical education. That should be the minimum, and I hope schools will offer more.

    Schools should establish links with local clubs and national sports bodies to help do this. They must open up their facilities outside school hours, and harness the willing help that I know is out there. There are sports coaches, parents and other volunteers by the hundreds and hundreds and hundreds who will willingly come in outside school hours to help our youngsters have a better grounding in sport, and all it means, for the rest of their lives. So while we’re about it, I don’t want councils selling off school playing fields they may need. I want those playing fields kept, and I want those playing fields used.

    Mr. President, there are many views about nursery education. My view is quite clear: I am in favour of it. The picture’s improving. Over half our three and four-year-olds go to nursery school. Nine out of ten have been to a playgroup or nursery school before they’re five. I think it’s time to accelerate this trend. So I’ve asked Gillian Shepherd to work up proposals to provide places for all four-year-olds whose parents wish them to take it up.

    This is a long-term proposal, but we intend that this new provision will begin to come on-stream during the lifetime of this parliament. This won’t be an easy exercise. We must consult parents and practitioners to get it right, because any additional publically-funded provision must be of high quality, it must promote diversity and parental choice, and it must be carefully targeted in a way that expands and does not crowd out the private and voluntary provision that we have at present.

    Since we are making a lasting change to pre-school opportunities, we will have to phase in the introduction of this extra provision, but what I am doing today is giving you a cast-iron commitment that it will happen, and I’m giving you that commitment now so that Gill Shephard can start consulting on it next week.

    Mr. President, I intend now to dispose of one of the most insidious lies in British politics. In life, some of our deepest convictions are formed by experience. Book-learning is vital, but life-learning runs deeper. When I was a boy, my father was elderly and sick, and my mother was frail. Their life wasn’t comfortable; they needed treatment regularly. They got it from the National Health Service. They had no money to pay, but they weren’t asked for any. I saw then, not only how well they were treated by the National Health Service, but the security of mind it gave them to know that it would always be available. I have never forgotten it.

    Now let me tell you a later story. Two weeks ago when Boris Yeltsin was at Chequers, we went for a walk. There was some comment afterwards that I was using a walking-stick. Naturally if I was using a walking-stick there must be an ulterior motive – was this my bid for the rural vote? Well, no, actually. I was using a walking-stick because I injured my leg badly in a car accident thirty years ago. For a while, that many years ago, I thought I might use it. It was saved by treatment on the National Health Service. I have never forgotten that either.

    Against that background, is it likely that I would damage the National Health Service or privatise it? Believing as I do that the greatest nightmare for millions is that one day, however prosperous they are today, that one day they may be old, sick, poor and uncared for, is it likely that I would take away from them the security of mind that was of such value to my parents? Mr. President, I can tell you, not while I live and breathe would I take that away.

    Let me say something else about the Health Service: It is the National Health Service, it doesn’t belong to any one political party. The Labour Party, even today, take credit for setting up the NHS. I wouldn’t take that away from them – it’s one of the few bits of their past they don’t currently seem willing to repudiate. But who has been in government for most of the fifty years since the Health Service was established? We have. It is we, the Conservative Party, who have been in government for most of those fifty years. It is we, the Conservative Party, who have cherished the National Health Service, and built it up year after year after year after year. Mr. President, it’s our Service too.

    But there is one difference between us and Labour. We don’t use it as a political football for party ends. Mr. President, we just build it up. I wonder how many of you know how many huge new hospital projects have been built since 1980 – you know, that period during which it’s said we have been running the National Health Service down? How many? None? Five? Ten? Twenty? A hundred? More than that? Surely not. In fact yes. The actual figure is over seven hundred big projects, each costing more than a million pounds and some of them many tens of millions for the one project.

    And I’m not talking about car parks and offices, I’m talking about patient facilities – new hospitals, operating theatres, pharmacies, maternity units and the like – all within the National Health Service, seven hundred of them since 1980, and I saw the latest bulletin here today: a new day surgery unit in the Royal Bournemouth Hospital just down the road. But there’s more. Consider it, perhaps, as it is: one multi-million pound National Health Service project every eight days the Conservative Party have been in government, throughout its fifteen years. That’s not words, it’s reality, and go out and tell it because it’s our Service too. So I have a message for Labour’s Health Spokesman, “Junket” Blunkett.

    Mr. President, when I became Prime Minister, I asked for a fresh look at the criminal justice system: the way we prevent crime, the way we police our streets, and the way we punish the criminal, and I did so because I felt that concern had shifted too much towards the criminal and too far from the victim. Why is there so much crime? The cheap, thought-free answer is to blame the so-called “acquisitive 80s”, but that’s just party political posturing; the roots are deeper than that. It is a long-term trend: sadly too many people feel less respect for their neighbours and for their neighbours property than once they did. And yes, I believe we have fostered too easy, too casual a response to crime by too great a tolerance of crime over many years.

    There have been too many voices excusing crime, explaining crime, and justifying crime. We think that’s wrong. That’s why we’ve increased penalties for rape, violence against children, firearms offences, drug-related crime and crimes committed on bail. And so that we can not be said by our opponents to have ignored what our opponents call our “friends in the city”, let me say we have also increased sentences for financial crime.

    For a whole range of crimes, then, we have toughened sentences, and judges are now using them. For the first time in years, a rising proportion of convicted criminals are being sent to prison. I take no pleasure in that, but everyone has the chance to stay within the law, and that is the point. If we are to change the climate against crime, then the offender and the offender’s chums must know they will not be able to swagger out of court, untouched, immune and boasting about getting off scot-free.

    I believe such firmness is right, and I believe it is necessary. Prison should be decent, but it should be spartan. No-one wants to alienate and harden attitudes, but prison is there to punish and not to pander. I fear that is not always the case, and where it is not, Michael [Howard] and I are agreed, it will have to change. But don’t let us fool ourselves. Punishment alone will not do the trick. We have to change attitudes, improve policing, and support the innovative methods of Chief Constables. We are now developing much more targeted approaches to crime – new approaches; we’re investing in more effective crime prevention.

    We must make streets safe for the law-abiding and dangerous for the criminal, and that is why we’re putting yet more money into closed-circuit television. It’s been a huge success, not only in big cities like Newcastle, but in smaller places like King’s Lynn as well. We’re going after drug dealers and drug trafficking, putting together the most comprehensive campaign against drug use ever launched in this country, and we will be announcing the details of this next week.

    And we are putting modern science at the disposal of the police. As Michael Howard told you yesterday, we’re giving them wider powers to take DNA samples from people they suspect of crime, and that will help target sex offenders against women and children, and as a result help make this country just a little bit safer for millions and millions of people. The powers in the Criminal Justice Bill are needed, and I can tell conference this: we will never be deterred by the disgraceful riots like those we saw in London last weekend. And the sooner the Labour leadership disowns those Labour MPs involved in organising and speaking at this event, the sooner we may be prepared to take seriously some of their strictures on crime.

    And I can tell you how I feel about that episode: I think there’s something profoundly sick with people who organise a demonstration which turns into a riot, and then criticize and attack the police who are only there to protect the public from the results of that riot. Mr. President, we hear enough bad news about crime. Let me tell you some good news. In Manchester crime fell by 12% in the last year; by 12% too in my own county of Cambridgeshire; in North Wales by 10%. What does that tell us? Not to relax, never. It doesn’t tell us to be complacent. But it does tell us we can fight back successfully. If you can target burglary and cut it in London and Warwickshire then you can do it elsewhere. Mr. President, it will take a national effort to beat crime, it will take time, and it must involve everyone, but we are determined to succeed and we have made a beginning.

    Many of the changes I’ve been talking about have come about in the last year or so, and I believe that people who have spent that time criticising my good colleague Michael Howard would have been far better off supporting him during that year.

    Mr. President, a generation ago it was said that Britain had lost an empire but not yet found a role. It may or may not have been true then, but it surely isn’t true today, because economically and militarily Britain remains in the top league – a member of the permanent five of the United Nations, a leading member of NATO, of the European Union, and of a Commonwealth that covers one-third of all the people on earth, a member of the Group of Seven of the worlds’ most powerful economies and one of only five significant nuclear powers in the world, and we have too as a priceless asset, perhaps the finest professional armed forces anywhere.

    That is Britain today, stripped of the masking-tape so often placed above it. So let’s recognise what we are, look with confidence at the new world, and go out and put our own distinctive British mark on it. The changes taking place around the world are truly awesome. I’m not sentimental about them – I know how fragile they are. Two months ago I was in Warsaw, where the first bombs fell in 1939, fifty years on from the heroic uprising in the Warsaw ghetto. It was good to be there. That August evening, we met in a free Poland, whose President was Lech Walesa, a shipyard worker who helped to change history. And taking his hand in friendship were the leaders of a democratic Russia and a united Germany. Poland’s past enemies were there as friends; hope had flowered and the world had changed.

    A month later I flew to Berlin, where allied forces were leaving after half a century. That day, our troops marched away from Berlin with that professionalism and that patience which is the special preserve of the British soldier. For nearly fifty years, they had stood guard for peace and freedom at the gates of Berlin; now they were no longer needed; the world had changed. Three weeks ago, I was in South Africa. When Harold Macmillan spoke there of the “wind of change”, it was to an all-white audience and a South Africa that was soon to leave the Commonwealth. But I spoke to a parliament freely elected by all South Africans, and that great country is back in the Commonwealth, back where it belongs.

    And what a tribute that is, to the statesmanship and the vision of Nelson Mandela and F.W. De Klerk. Finally, Mr. President, I flew from South Africa back to Chequers. There Boris Yeltzin was my guest, and the President of Russia and the British Prime Minister shared a country house weekend, a walk in the English countryside, and a pint of beer in a British pub. Four snapshots of change, historic days, when the impossible becomes not just possible but an everyday reality. Now the cold war is over, but while the threat was there, there were appeasers and accomodaters in plenty – but not in our party. We can say it with pride: We never heard their voices in this hall.

    As in the past, so in the future. Whatever uncertainties may lie ahead, this nation can trust that instinct for security that is a defining characteristic of the Conservative Party. Mr. President, the challenge now is to catch the tide of events that have flown in recent years so very strongly in our favour, to draw the nations of eastern Europe – historic, vivid nation states: Poland, Hungary, the Czech lands, and others – back into the European camera, to make democratic Russia an ally and not a threat, to help the democracies in the third world escape the excessive debt that cripples their development – and time after time it has been British initiatives that have led the way in achieving this, to use our age-old links with Africa to help prepare that troubled continent for a better future.

    These are historic roles; historic roles for which Britain and the Conservative Party are marked out by history and by experience. We will use that experience. We will use it also to carve out the right position for Britain in the right sort of Europe. There are extraordinary enthusiasms – hopes, fears, apprehensions – on both sides of the European argument, but I made our general position clear with my speech at Leiden. I believe it carries with it the overwhelming majority of this country, and that is the basis on which I will negotiate in 1996.

    And if I am not satisfied, I will do as I have done in the past: I will just say “No” to changes that will harm Britain. But I hope I will be able to secure an agreement that we can accept, for that is in the best interests of Britain. Across the world, the last four years have been turbulent. The years ahead may well be turbulent as well. We will be cautious, pragmatic and safe, but the world remains uncertain and unstable. If anything the end of the cold war has made regional wars more likely and not less likely. We cannot safely assume that it will be a safe world. Only this week we have seen how quickly a crisis can blow up in the Middle East, but who better to send there and act for Britain than Douglas Hurd, our own Foreign Secretary.

    Mr. President, we have interests the world over. Isolationism is a luxury that Britain cannot afford, and there is a growing need for regional peace deals – we are very good at them; the defence of British interests does not always lie on British soil. So we will continue to play a leading role, as we have always done, through the United Nations.

    Mr. President, the main point’s clear: while we have Conservative government, Britain will have a sure and stable defence, the best equipment, the best weapons, the best trained troops that we are able to provide. Last week showed again how distinctive that position of ours truly is. In opposition it doesn’t matter that Labour voted to scrap Trident – in Government it would. In opposition it doesn’t matter that the first place Labour would look for cuts would be another defence review – in Government it would.

    So let me mark out the clear ground, so that no-one serving our country in uniform is in any doubt. Three months ago, we confirmed our frontline would have an extra three thousand troops, and placed five thousand million pounds worth of orders and tenders for modern and effective equipment for the army, the navy and the air force. That, Mr. President, made implicit what I will now make explicit: the big upheavals in our armed forces are over. They deserve the best from us and they will get it.

    Let me say something about Northern Ireland, and the momentous events through which we are living. For the past 25 years, Northern Ireland has faced the daily horror of murder and brutality, kneecapping and beatings, organised racketeering and viciousness to fund terrorism for political ends. No morning has dawned that might not contain an atrocity: a father who didn’t return home, a woman or child indiscriminately bombed, a policeman or soldier killed by a hidden sniper. That evil has spread, from time to time, to mainland Britain: the Brighton Bomb, ten years ago this very day, that some of you will be remembering so vividly and so painfully. We still miss those who were lost and think of those who were injured. It was intended to murder a cabinet, but it ended up hardening the resolve of an indomitable Prime Minister.

    We remember the murders of Airey Neave and of Ian Gow, the bombs in the city and at Downing Street, the agony of Warrington, and the heart-rending memories of Tim Parry and Johnathan Ball who will never know the future that should have been theirs. What did those two little boys ever know of political disputes? In all this time, these long twenty-five years, the extraordinary people of Northern Ireland have carried on with their lives. Northern Ireland is part of the United Kingdom. All the people of Northern Ireland need to know that a search for a solution to their problems is right at the top of the British government’s agenda, and I solemnly give them that promise.

    We have made progress. It was the Downing Street Declaration that set out the principles that will continue to guide us. It helped isolate the IRA and push them to their ceasefire. As Jim Molyneaux put it, “It was significant”, he said, “when the IRA started to murder pensioners, children, mothers and fathers and so it was bound to be significant when they stopped. The most significant part of all has been the victory of ordinary people over the terrorists”, and how right Jim Molyneaux was.

    And yesterday, yesterday the loyalist paramilitaries announced that they too were stopping violence. Another victory for ordinary people, brave people, in Northern Ireland. Today, for the first time in a quarter of a century, the people of Ulster have woken up to peace. Our determination must be to make that peace permanent. To fasten down what is unfolding needs clear reasoning and cold calculation. Many people will urge me to hurry. I understand their enthusiasm. I will not tarry one day longer than I judge is necessary. But I will take it in my own time. The responsibility for Northern Ireland is the responsibility of the British Government.

    I am used to being urged to hurry. I have had such advice daily since the Downing Street declaration. But if I had listened, we would not today where we are, with the guns stilled and the bombs stopped and Northern Ireland on its way to a better future. So other people can call for speed if they wish, but I must ask the hard questions and I must make the right judgements at the right time, and to the best of my ability, I will. Things are changing; the profile of street security has lessened on military advice, men and women are no longer searched when they enter hotels and large stores; but let me give this assurance: for as long as is necessary, as many policemen and troops as are necessary will stay on duty in Northern Ireland to protect all the people of Northern Ireland.

    We have made a beginning, but not yet an end. Every day that violence is absent brings more hope. Progress may not be easy, there will be setbacks, there may be disappointments – people who are suspicious, who block progress. All this probably lies ahead. But there is, I am sure, a way through. If you will something, you can make it happen, and the will for peace in Northern Ireland is very strong. So Paddy Mayhew and his team, who have done so well, will press ahead with the political talks with the constitutional parties. We intend to complete a framework document with the Irish Government.

    We hope to restore local accountability and local democracy to Northern Ireland; to seek an agreement, an agreement that is acceptable to the people of Northern Ireland, and we shall test their view in a referendum as a cast-iron safeguard of our intentions. I know the size of the task ahead. I’ve no illusions about its difficulty, or the past record of many of the people with whom we are dealing. But we cannot let history freeze us into inaction. There is a chance, a window for peace. We will enter it if we can do so with honour and with consent.

    In the words of the old testament, which is common to both traditions in Northern Ireland, “There is a time to love and a time to hate, a time of war and a time of peace.” The people of Northern Ireland are sick of war. It is for them that we must build a time of peace.

    Mr. President, it’s a cliche’ today that every leader must have “the vision thing”. We’re told he must map out, in dramatic form, new direction. I don’t disparage “the vision thing”, but alongside “the vision thing” I must tell you I remain rather attached to “the action thing”, to “the practical thing”, to the “how on earth do you deliver these promises thing”. By all means listen to a politician when he tells you what he plans, but ask him too “How will you do it?”. Take it from me, the devil, the very devil, can be in the detail.

    I don’t disparage the mapping of direction, or sometimes, new direction. I hope I’ve sketched out some today, but I must tell you, there is sometimes merit in the old direction. Change for the sake of change should never appeal to any Conservative. In a world sometimes of bewildering change, this party must stand for continuity and stability, for home and for health. And we must build this for the long term, for our children and for our grand-children. It is the young people out there, it is they who will make the world in which we grow old. They will make the decisions. They may decide in their time to strike out along new pathways, but it is for us in our time to build for them a stronger foundation so they may have that choice.

    And today my message to you is that Britain is growing stronger: we are beginning to see the fruit of all the things we’ve battled and striven for throughout these difficult last four years. You know, running the country isn’t like walking down the road. You have to hold fast to your core beliefs, whatever the short-term pressures may be; see the right things through to their finish, whatever the risks may be. To govern is to be engaged in a hundred themes, a thousand roots, and the everyday visions, sometimes conflicting, of literally millions upon millions of people. No windy rhetoric, no facile phrases, no pious cliche’, no shallow simplification, no mock-honest, mock-familiar adman speak, can conceal or should be permitted to conceal the infinite complexity of government.

    Take care nobody tries to conceal that from you. Take care not to confuse travesty with truth. Never assume that because an idea is easily communicated that it must be right. Take care not to confuse oratory with practical concern. Look for the achievements of government not always in bold plans or crude conflicts, but sometimes in mended fences too, and sometimes in the accretion of small steps whose pattern takes time to become clear.

    In this difficult world, our interests are daily at stake. The time is ripe for grown-up politics. The glib phrases, the soundbites, the ritual conflicts, all these may be the daily stuff of life for the upper 1,000 in politics, but to fifty million other people in this country they are utterly irrelevant and my interests must be with them.

    It is said that actions speak louder than words. I hope so, for in the end, and when it comes to a choice I shall bend my energies always to work, not talk. My trade has never been in adjectives; I shall be patient. I shall be realistic. I shall ask for patience and realism in others, and I promise you this: I shall put my trust in results. Thank you.

  • Mr Major’s Commons Statement on the 1994 Economic Summit at Naples – 11 July 1994

    Below is the text of Mr Major’s Commons statement on 11th July 1994 regarding the 1994 Economic Summit at Naples.


    PRIME MINISTER:

    The Prime Minister (Mr. John Major) With permission, Madam Speaker, I shall make a statement on the Naples summit of 8 to 10 July, which I attended with my right hon. Friend the Foreign Secretary and my right hon. and learned Friend the Chancellor of the Exchequer. I have placed the communique of the seven-nation economic summit and the chairman’s statement on the eight-nation political summit in the Library of the House.

    The summit process is changing in two important ways. In 1991, I invited the then Soviet leader to join the seven for a meeting after the London summit. This practice was continued in 1992 and again in Tokyo last year. I discussed a new format with President Yeltsin in February. That was to invite Russia to become a full and equal partner in our political meeting. That was accepted and President Yeltsin’s involvement brought an extra dimension to the political aspects of the summit. He made it clear that Russia will co-operate closely on the most difficult international problems, from Bosnia to North Korea ; and he was warmly welcomed in that spirit.

    The second change is that the summits are returning to the informality and free debate which characterised the early meetings 20 years ago. The move away from set-piece speeches and pre-scripted discussions made it the most wide-ranging summit which I have attended. We shall allow even more time for unscripted discussions next year at Halifax.

    We spent some time discussing international institutions. Many of the main world bodies–the United Nations and the Bretton Woods institutions, for example–have been with us for nearly half a century. The world has changed enormously in that period and so have some, but not all, of our institutions. For example, the World Trade Organisation will take over as a permanent body in place of GATT, itself originally a temporary structure. But, generally, we concluded that we should think about further changes to those institutions which may be needed in the future. We need to decide how best to meet the huge tasks confronting the different parts of the United Nations and how to respond to new economic problems. We may need to revitalise those institutions. We shall all consider that between now and the summit at Halifax next year. If we conclude that changes are necessary, we shall begin the process of bringing them about. The summit countries alone cannot make those changes, but it is right for us to ask whether they may be necessary.

    On economic matters, the summit built on the G7 countries jobs conference held in Detroit earlier this year. The world economy is now emerging from recession. At Naples, there was wide agreement on the policies that the G7 countries now need to pursue : free trade, flexible labour markets, deregulation, policies that help and encourage unemployed people back in to work, and investment in education and training. Those themes will be familiar to the House, because they precisely match the policies that this Government have been pursuing. They were all warmly endorsed by the G7.

    Further trade liberalisation is an important part of the G7’s strategy. The completion of the Uruguay round was a significant achievement that will increase trade and growth right around the world. We need the various agreements to be ratified by the end of this year. Thereafter, we should consider further initiatives on trade and on economic liberalisation.

    The summit proposed additional debt relief for the poorest countries. That is something I have long been pressing for. At Naples, we agreed on two specific measures to help those countries facing special difficulties : first, more help with debt payments, taking the level of relief above 50 per cent.–to two-thirds and perhaps beyond ; and, secondly, reductions in the stock of debt. We also agreed to explore ways of getting the international financial institutions to use their resources more effectively to help the poorest and most indebted countries.

    Since I introduced the Trinidad terms initiative four years ago, 22 countries have benefited, with nearly $3 billion of debts written off thus far. The new proposals agreed at Naples will provide further help to lift a burden from some of the world’s poorest countries. We urged that there should be more help for the Palestinian authority, which is setting up an entirely new administration in Gaza and Jericho and needs to encourage new enterprises. Britain is contributing £75 million, bilaterally and multilaterally, over three years, including the extra help for running costs and technical assistance announced last week.

    Likewise, in South Africa, Britain has allocated £100 million to transitional aid over the next three years. South Africa’s re-entry into the economic mainstream could do much to revitalise southern and central Africa.

    We also spent some time on Ukraine, where there is an evident need to restructure the economy. Given her position and size, it is important to have both a stable and prosperous Ukraine. The summit countries and the international financial institutions are keen to help that process, which must include reform of the energy sector. We are putting forward an action plan to close the Chernobyl nuclear plant, where there are continuing worries about the risk of another accident. Our plan will require reform by the Ukrainians as well as providing significant financial help from the west. We agreed also to replenish the nuclear safety account.

    On the environment, the G7 were concerned about the slow progress in meeting the commitments made at the Earth summit in Rio, and agreed to speed this up. Britain itself has fully met her commitments under the action plan agreed after Rio by the Group of Seven. We have published the plans required under the climate change convention. We all agreed to report further progress at next year’s G7 summit. At the Commonwealth conference last year and the European Council in Corfu, I argued for more action by Governments to oppose transnational crime, drug trafficking and money laundering. This approach was strongly supported at Naples. Where necessary, we are urging countries around the world to introduce legislation to prevent money laundering.

    Bosnia was discussed in my bilateral meetings with both the Russian and American Presidents and, of course, at the political summit itself. Collectively and individually, our Governments will urge the parties to accept the Contact Group’s settlement proposal. We are completely united on that point. There is a risk of a wider and more intense conflict if this opportunity for peace is not taken. Later this week my right hon Friend the Foreign Secretary, together with the French Foreign Minister, will visit the former Yugoslavia to impress this point on the parties.

    We need assurances about North Korea’s nuclear programme, including compliance with the non-proliferation treaty and with International Atomic Energy Agency safeguards. The summit supported the efforts of the United States and of South Korea to develop a dialogue with the north, and I hope that they will be resumed when North Korea has a new leader.

    In Yemen, the recent, brutal civil war has left fears about the country’s future stability. Iraq’s support for the north has caused justifiable concern to our friends in Saudi Arabia and Oman, both of which border Yemen. The summit called on the Yemeni authorities to resolve internal difficulties without repression. We were concerned that Yemen would become a new source of instability in the region. I have highlighted the key political and economic points of what was effectively two summits in one. Summitry has proliferated over the past 20 years. I believe that we need a critical approach to make the best use of these occasions. Many worthwhile changes are now taking effect, and the Naples meeting was much more valuable as a result. I commend the outcome of the summit to the House.

    Mrs. Margaret Beckett (Derby, South): There is much in the communique that we welcome, and much on which the Prime Minister touched only lightly, if at all. In particular, we welcome the communique ‘s strong emphasis on the need for action to create jobs, to promote growth and the increased wealth that that creates ; to tackle the damage being done to our environment and especially the problem of Chernobyl, to which the Prime Minister referred, and to work with the Ukraine to remove its nuclear stockpile. I join the Prime Minister in urging acceptance of the settlement proposals for Bosnia since, unsatisfactory though some may think them, continued conflict could surely only be worse.

    We were also pleased to see in the communique that a start is being made on the reform and modernisation of the World bank and the International Monetary Fund. After talking about third-world debt relief on Trinidad terms for four years, it may actually begin to happen on a wider basis.

    However, does the Prime Minister acknowledge that for many in the developing world, money will still just be going around in circles with money freed by bilateral debt relief going to the World bank or the IMF instead unless steps are taken towards multilateral debt relief, building on the approach already adopted ?

    Although the Prime Minister spoke this morning of the advantages of increased international trade, does he accept that unless we find some way of oiling the financial wheels and promoting international support for the economic reconstruction and development to which he referred–in South Africa, the middle east as well as in eastern Europe–it simply will not happen ?

    We welcome the reference in the communique to the fresh allocation of special drawing rights for which the IMF and the new members from eastern Europe have called. However, can the Prime Minister tell us anything about the time scale for that decision and what discussions were held on other measures, perhaps, as in the past, financed from IMF gold stocks ?

    Will the role of the G8 be reviewed alongside the IMF and the World bank, as John Smith urged earlier this year, exploring the idea of an Economic Council of the United Nations alongside the Security Council and drawing in therefore, as the G8 at present fails to, other major economic players such as China and South America ?

    The Prime Minister’s principal contention in what he said about the economic summit is that the rest of the world is following Britain’s lead and that this because of our proven economic superiority. I can only describe that observation as self-deluding since it is supported neither by the words of the communique –and I urge Conservative Members to read the communique in the Library–nor by the facts. As anyone who reads the communique will discover, it calls for the co-ordinated pursuit of growth, job creation, skills enhancement, support for innovation and infrastructural renewal. Those are all Labour party policies since before the last election and they were all denounced by the Prime Minister as irrelevant and wrong. That leads one to wonder why he signed a communique which calls for precisely those measures.

    The Prime Minister should recognise that, if those words in the communique that he signed are to be more than empty words, a complete change of British Government policy will be required. Is it not the case that, far from endorsing the Government’s recipe of never-ending deregulation and lower wages, in the discussions the American Secretary of Labour called it

    “part of the problem not part of the solution”

    and that, although there is a call in the summit communique to reduce employment costs, this Government have increased them by pushing up national insurance and loading sick pay costs on employers ?

    The Prime Minister must also be aware that the truth is that, while all our competitors are keeping, and in some cases increasing, minimum wage protection–for example, in France and in some parts of the United States–and bringing measures like extra family leave into train, their record on growth, skills and job creation is better than ours.

    Is not the real message of the communique that our more successful rivals are pursuing, not the policies of this Government, but the path that we advocate? The Prime Minister and his colleagues show every sign of failing, yet again, to understand why they are failing Britain.

    The Prime Minister: I must say that that was a very novel interpretation, on which I shall comment in a few moments. I welcome the support that the right hon. Member for Derby, South (Mrs. Beckett) offered on a number of proposals in the communique relating to jobs, energy, environmental matters and on the approach that we are proposing on Bosnia. I also welcome what she said about the Trinidad terms. A substantial amount of debt has been written off already, but there is further to go. Some countries have been resistant to implementing the Trinidad terms, but I think that the Paris Club can now move ahead as a result of the agreement reached at the G7 in the past few days. That will be immensely helpful to many poor countries.

    As the right hon. Lady intimated, there are other ways of helping poor countries. It was rather masked in the arcane language of the communique , but we looked at using the IMF’s gold stocks to assist not only the very poorest countries in the world, but areas such as Gaza and South Africa, where there is a self-evident need for help. That is a wise way for us to proceed. In terms of job creation in those countries, the opening of markets, the liberalisation of trade and the elimination of debt will all provide an incentive for growth that will show within those countries–providing we are able to proceed with those proposals. The right hon. Lady then moved on to other matters and quoted rather selectively from the communique . Alas, she missed some points, such as a number of structural measures to reduce labour rigidities, which add to employment costs or deter job creation, eliminate excessive regulations, which will ensure that indirect costs of employment are reduced where possible, and to pursue active labour market policies.

    The right hon. Lady’s eyes apparently skimmed past a range of other things as she quoted from the communique . If she thinks that all those measures are Labour party policies, my hon. Friends and I will be very pleased to have learnt, at last, what it is that the Labour party stands for in terms of economic policies. As for the right hon. Lady’s concluding remarks about the relative performance of the United Kingdom, that is an old ground of dispute between us. I do not agree with her interpretation, because there is no doubt that our country is leading the European Community out of recession–there can be no doubt about that, because our growth this year is likely to be twice as high as that of any other European Community country. I find it astonishing that, when this country is doing well and companies and the work force are doing well, that is something that the Opposition appear to regret deeply. I am sorry to learn that.

    I must tell the right hon. Lady that we are leading the country and Europe out of recession. It is extremely good news for the world economy that the American growth now exists, that the Germans are now out of recession and that the G7 as a whole is moving back into growth by following the sort of policies that have brought this country out of recession, and not the policies that the Opposition advocate, which would take it straight back into recession.

    Mr. David Howell (Guildford): Does my right hon. Friend accept that he did an excellent and workmanlike job for Britain at the Naples summit ? He is to be congratulated on it. Like my right hon. Friend, I hope very much that the Contact Group will succeed in bringing peace of some kind to Bosnia. Can he explain why the Serb Bosnians should cease their fighting, after a 100-year ambition to expand their areas of control, when they have an unending supply of arms and equipment from Serbia proper? Has not the time come, particularly as Mr. Yeltsin is more on side now, to strengthen the embargo against Serbia proper in all sorts of ways? That would bring home to the Serbians and Serbian Bosnians that they cannot go on defying world opinion and that they must come to the peace table with everyone else.

    The Prime Minister: In his last few words, my right hon. Friend set out clearly the message which my right hon. Friend the Foreign Secretary and the French Foreign Minister will take to the Serbs in the course of the next few days. It must be made clear to Serbia that Serbia and the next generation of Serbians have no future unless they are prepared to come to an agreement that is satisfactory to the world community. They cannot continue as they are and they can certainly expect no relaxation of sanctions or any international help until and unless they reach an agreement that will bring the fighting to an end.

    For some time, both the Serbians and, on occasion, other parties have moved away from the settlement that could have been reached in the belief that, if they waited, they would get a better deal in the future. There is now no doubt that the international community is determined to do whatever it can to enforce a settlement. I find it striking that each of the political heads of the G8, including the President of Russia, were determined that now was the opportunity to put every conceivable pressure on all the parties to come to a satisfactory settlement.

    Sir David Steel (Tweeddale, Ettrick and Lauderdale): Does the Prime Minister acknowledge that the forthcoming mission of the Foreign Secretary and the French Foreign Secretary, backed by President Yeltsin, to try to persuade the warring parties in Bosnia that they must accept the peace settlement, however imperfect, deserves the united support of this House?

    On the economic section of the communique, will the Prime Minister forgive me if I do not quote bits of Liberal Democrat policy in its support, following the pattern already set? On the institutional changes contemplated in the world financial bodies, will he assure us that he will also look at their lack of accountability to member Governments and member Parliaments for the policies that they pursue?

    Finally, does the Prime Minister accept that, although the communique is less specific than his statement, we welcome the new debt relief proposals that he has achieved? He will know that the all-party Africa caucus lobbied the Chancellor before the meeting, and he saw us last year. We are deeply grateful for the progress that has been made. It will certainly bring widespread relief to at least six of the poorest countries in Africa.

    The Prime Minister: I am grateful to the right hon. Gentleman for his final point. As soon as we have moved a little further with debt relief, we need to look again at the countries that are eligible for it. Some countries fall on just the wrong side of the debt relief line currently available under the Trinidad terms, but those countries may be helped by the point which the right hon. Member for Derby, South (Mrs. Beckett) asked me about–the proceeds of institutional gold sales by the IMF. That would not necessarily be restricted to Trinidad terms countries.

    On the institutional changes, accountability certainly needs to be examined. That is perfectly clear. The underlying reason for that examination is simply to determine whether, after so many years, the institutions themselves are still relevant to the problems that are likely to face us in the next 10 or 15 years. By “institutions”, I mean not only the Bretton Woods institutions–the IMF and the World bank–but we need also to look at the United Nations, the development of NATO in the light of “Partnership for Peace”, and the enlargement of the European Union, as well as the changes that we have already seen with GATT becoming the World Trade Organisation. Those are not matters which the G7 can determine but, in all those institutions, the G7 countries are leading members.

    If we decide that there needs to be some reform, at that stage we shall wish to consult other members of those institutions in an attempt to bring about the reform. But I emphasise that the G7 does not see itself as a directorate that can impose those changes on the institutions. We are simply making the point that now is the time to examine them to see what changes are necessary.

    I agree with what the right hon. Gentleman said about Bosnia and I am grateful for his support for the visit of my right hon. Friend the Foreign Secretary.

    Several hon. Members rose

    Madam Speaker: Order. A number of hon. Members seek to question the Prime Minister. I am now looking for one brisk question each and, if I may, brisk answers.

    Sir Peter Emery (Honiton): Was further consideration given to the extension of the non-proliferation treaty to those countries that have not signed it? Will Japan support any action that might be taken against North Korea if the situation deteriorates rather than progresses?

    The Prime Minister: There was, in discussion, unequivocal support by all the G7 members, including Japan–and of course Russia as part of the G8–for the indefinite extension of the non-proliferation treaty in 1995.

    Mr. Peter Shore (Bethnal Green and Stepney): The summit communique reads remarkably like the election manifestos put out by my hon. Friends who are candidates for the Labour leadership– [Interruption.] –so, obviously, there are good things in it. In particular, I welcome the movement of the G7 into the G8, including Russia, and the arrangements for a very searching 50-year anniversary review of the institutions set up in Bretton Woods. On the question of aid, can the Prime Minister tell us what figure he hopes to put on the further concessions of debt relief as compared with the $3,000 million debt relief already gained ?

    The Prime Minister: I think that it is difficult to put a precise figure on it. I will examine the scope for further reduction, and I will write to the right hon. Gentleman with a figure. It will be a very substantial figure indeed, but I cannot immediately put a figure on it.

    On the earlier points, I am pleased to have the right hon. Gentleman’s support for the review of the institutions. I was a little surprised to hear of the apparent similarity between the communique and the manifestos of the potential leaders of the Labour party, which I have read with great interest– [Interruption.] I am not sure that my vote would swing the result–not least, though, alas, he is not with us this afternoon, that of the hon. Member for Kingston-upon-Hull, East (Mr. Prescott), who, despite what was in the G7 communique , said on 4 July :

    “Deregulation has been an economic failure”.

    Mr. Iain Duncan Smith (Chingford): Notwithstanding my right hon. Friend’s reply to the question of my right hon. Friend the Member for Honiton (Sir P. Emery) about nuclear proliferation, does he agree that one of the biggest problems is that North Korea and China are at the apex of a chain of proliferation which has already taken place, and that many countries in the middle east, not least Iran, Iraq and Libya, have significant capability and within the next five or six years are likely to have a launch facility which will be able to strike parts of Europe? Does he agree that now is the time for us to accept that proliferation has to some extent failed, and to find new measures?

    The Prime Minister: I am disinclined to accept the concept that proliferation has failed because I think that it is extremely important that we press the case for non-proliferation whenever and wherever we have the opportunity. It is not always entirely clear precisely who has the capacity to launch nuclear weapons and who has them. I wish it were a good deal clearer than it sometimes seems to us. But there is no doubt that we need to maintain pressure. My hon. Friend mentioned a number of countries which we have been pressing precisely on this point. He could probably name others, and so could I. However, we intend to continue to press for non-proliferation both through the treaty and, of course, bilaterally.

    Mr. Tam Dalyell (Linlithgow): What did President Yeltsin say to his colleagues about sanctions against Iraq ? How does the Prime Minister feel about continuing sanctions and the shortage of water filters and water pumps in the sweltering heat of Baghdad which will most certainly lead to massive disease in the Euphrates and Tigris valleys ?

    The Prime Minister: The hon. Gentleman knows of the humanitarian options that are available, and he and I have had the opportunity of discussing them in the past. President Yeltsin did not express a view on this matter, but Russia, of course, has supported the imposition of sanctions on Iraq, and continues to do so.

    Mr. Toby Jessel (Twickenham): Can my right hon. Friend tell us whether the Group of Seven considered the long-term economic impact on the rest of the world of the growing industrial strength of Asiatic countries, not only Japan, Korea and Taiwan, as it was, but now increasingly India, China and half a dozen other countries?

    The Prime Minister: We did not specifically discuss those countries in that sense, but in all the economic discussions of employment and growth, the changing position of south-east Asia and the Pacific basin countries was ever present in our minds. Many of the countries that were relatively captive markets to western states 20 or 25 years ago are now not only competing with those previous supplier countries but competing very successfully with them in different parts of the world. That is one of the matters that I think underlies the concern that we have for the maximum amount of industrial efficiency in this country, because competitiveness is far greater as a result of what has happened in the Pacific basin than it has ever been before.

    Mr. Andrew Faulds (Warley, East): The right hon. Gentleman mentioned the contribution that Her Majesty’s Government are making to the rebuilding of Palestine. Would he be good enough to give the House some idea of what contributions his G7 colleagues are likely to make to that purpose, and does he consider them anything like sufficient for the immense job that faces President Arafat?

    The Prime Minister: It is, as the hon. Gentleman says, an absolutely immense job. Apart from our bilateral contributions, there will be bilateral contributions of various sizes from a number of the other G7 countries, and also a substantial collective contribution from the European Union. I shall write to the hon. Gentleman with details of the figures that we have.

    Mr. Nigel Forman (Carshalton and Wallington): May I return to the issue of non-proliferation in relation to nuclear matters ? Was there any consideration at the summit of measures that it might be right for the G7 to take–and Russia to take–to encourage other sources of energy in countries that might be tempted to go nuclear precisely because they see nuclear power as their best chance for the future ?

    The Prime Minister: There was no discussion on that point–time did not permit detailed discussions on it. We are primarily concerned to make sure that the non-proliferation treaty is extended and that it sticks. As my hon. Friend will know, a large number of countries are at the moment disinclined to sign it; we are very concerned to make sure that they do.

    Mr. Dennis Skinner (Bolsover): Another summit, another jamboree. Why did not the Prime Minister tell us about the part of the communique that he had to deliver at the end of the summit in respect of those two Tory Members of Parliament with their noses in the trough?

    On the subject of deregulation, why should big business have to carry the on-costs of lining the pockets of Tory Members to put down questions ? In some of the other G7 Parliaments, the rule is : one Member of Parliament, one job only. If people cannot manage on £31,000 a year, they should not put up for the job.

    The Prime Minister: The hon. Gentleman no doubt thinks that these summits are enormous fun. Set against the attractions of a cricket final at Lords they do pale to a certain extent, at least for me. The matters mentioned, with his usual delicacy, by the hon. Gentleman were not discussed at the summit.

    Mr. Patrick Cormack (Staffordshire, South): When the Foreign Secretary goes on his crucial mission this week–we all wish him success in that–will he and his colleagues see President Milosevic, Mr. Karadzic and General Mladic together, to impress on them not only how seriously the G8 view their appalling actions but also the fact that those who are responsible for war crimes will be brought to book?

    The Prime Minister: I am confident that my right hon. Friend will meet each and every one of those gentlemen, but I very much doubt whether he will meet them together. There are likely to be separate meetings. He certainly proposes to see the leaders of the Serbs and the Bosnian Serbs, and I have no doubt that he will make my hon. Friend’s final point to them.

    Mr. Peter Mandelson (Hartlepool): Did the Prime Minister, in one of his scripted or unscripted moments in Naples, discuss the presidency of the Commission? In his quest for anyone but Dehaene to succeed Delors, can he tell the House who now is in the frame and what qualities they have?

    The Prime Minister: That too was not a matter for the G7 summit. There was no formal discussion at Naples of the Commission presidency.

    Dr. John Cunningham (Copeland): Go on.

    The Prime Minister: I shall repeat it for the right hon. Gentleman’s benefit : there was no formal discussion in Naples of the Commission presidency. It would be wholly wrong for four member states to form a caucus. [Laughter.] The House is well aware of the objection that I took to that on a previous occasion when there seemed to be a caucus. What is needed is thorough consultation between all 12 states, and that is what the German presidency has in hand.

    Mr. Anthony Coombs (Wyre Forest): The conclusions of the summit properly recognised the importance to economic growth of deregulation and labour market reform–despite the somewhat spurious claims of the Johnnies-come-lately on the Opposition Benches. Would my right hon. Friend agree that, in a European context, subsidiarity is particularly important? Does he agree with Klaus Kinkel, the German Foreign Minister, who recently said that subsidiarity provides the opportunity to roll back European decision making? Is not that evidence that European decision makers are at last coming round to the British view on subsidiarity?

    The Prime Minister: I certainly know that the German presidency proposes to take subsidiarity a good deal further during its presidency of the European Union in the second half of this year. I have not heard the particular quote by Mr. Kinkel, but it is certainly one to which I would subscribe, and it is an indication of the extent to which the terms of debate in Europe have changed.

    Mr. Harry Barnes (Derbyshire, North-East): If the Government think that they are dragging us up the economic hill, taking the G7 countries behind us, who took us down in the first place?

    The Prime Minister: One might ask the same question of all the G7 countries which suffered recession.

    Mr. Barry Field (Isle of Wight): In three weeks’ time, the Bank of England will be celebrating 300 years of survival. Does my right hon. Friend agree that the best news to come out of the summit is that the G7 central banks, and the Bank of England in particular, would no longer be required to chase the US dollar all over the Pacific?

    The Prime Minister: The tercentenary of the Bank of England is a remarkable occasion : the bank has been an astonishing institution over the years. My hon. Friend makes his point with great clarity.

    Mr. Harry Cohen (Leyton): Virtually the whole House will approve of the G7 putting up the money to close down Chernobyl nuclear power station. When is that likely to come about? There are other nuclear power stations of similar design in the former Soviet bloc. Will money be put up to close them down as well?

    The Prime Minister: We have reached agreement on the way to help the Ukrainian authorities to close the Chernobyl plant. That involves closing the remaining reactors and assisting to complete new reactors with modern safety standards. That will now have to be discussed with the Ukraine. That will happen speedily, and I hope that the resources can then be made available. We have centred on Chernobyl because of the nature of that reactor and its condition, which is one of the special concerns.

    Mr. John Greenway (Ryedale): Given that much of the nervousness in world financial markets appears in part to be due to worries about long- term inflation, what discussion took place on inflation prospects? Were other countries present able to point to the good news on inflation such as that we had today on factory prices?

    The Prime Minister: Yes, there was some discussion on inflation. There is no doubt that at the moment inflationary tendencies are subdued, not just in this country but in other countries. It is certainly the intention of the G7 Governments, as far as it is practicable, to keep inflation at the lowest possible level. I hope that that will have its long-term impact on the markets as soon as it is apparent to them that that is happening.

    Mr. Tony Worthington (Clydebank and Milngavie): The news that the United Nations and its organisations and the international financial institutions are to be reviewed is welcome, but is not this a matter of such importance that it would be appropriate for the Government to issue a consultation paper so that there could be widespread debate in this country on those matters?

    The Prime Minister: We first have to consider the matter ourselves. I shall consider the hon. Gentleman’s point. I am not immediately attracted to issuing a White Paper. I think that the first process is for us to consider as a Government–and I accept that it is certainly a reasonable matter for a debate in the House–whether we think that changes are necessary and, if so, what they might be. However, I would prefer to engage in discussion with other Governments before deciding what to press for. Although I hope that other people would not hesitate about letting us have their views, I am not at the moment attracted to publishing a White Paper.

    Mr. Jacques Arnold (Gravesham): May I draw attention to the pressure, according to the communique , that the G7 countries and Russia are putting on the Haitian junta to step down? In his campaign for democracy and human rights, will my right hon. Friend bear in mind the last Latin American republic that has still not returned to democracy and human rights–Cuba?

    The Prime Minister: My hon. Friend is right : Haiti is a matter of some concern to a number of countries and, of course, particularly, for self-evident reasons, to the United States. We should certainly like to see the restoration of President Aristide and democratic government. That is equally the view of the other G7 Heads of Government.

    Mrs. Ann Clwyd (Cynon Valley): The Prime Minister spoke of the concern of the G7 Governments for the poorest in the world. Was he able to tell them when his Government would reach the UN target of 0.7 per cent. of GNP for overseas aid?

    The Prime Minister: No Government was able to give a commitment as to when that would be. As the hon. Lady knows, I think that we have the sixth largest aid programme in the world. I think that our record is unequalled by any other country in terms of the amount and speed with which we have completely written off historic debt.

    Mr. Michael Brown (Brigg and Cleethorpes): I believe that my right hon. Friend said that South Africa was discussed at the summit over the weekend. Will he confirm that it is imperative that the G7, rather than just the United Kingdom, contributes to ensuring the economic development and regeneration of South Africa? If that country succeeds economically, the trickle-down effect across the whole continent will be of great benefit.

    The Prime Minister: I agree with my hon. Friend. There is no doubt that other countries also recognise the importance of South Africa. In effect, they recognise that in two ways–the importance of dealing with the internal difficulties of the new South African Government ; and, equally, the impact of a successful South Africa on the whole of southern and central Africa. I have no doubt that other countries will offer assistance. My right hon. Friend the President of the Board of trade is currently in South Africa, with business men, to determine what assistance can be given.

    Mr. Geoffrey Hoon (Ashfield): In his statement, the Prime Minister suggested that the G7 supported his Government’s calls for flexible labour markets. However, was it not the case that in the final communique other members of the G7 insisted specifically that the word “flexible” was not part of the final words? Is not that because they have quite a different view from Government policy on the best way to create jobs?

    The Prime Minister: I am not sure where the hon. Gentleman heard that, but it did not occur in any discussion to which I was party.

    Mr. Ian Bruce (South Dorset): Following directly from the question asked by the hon. Member for Ashfield (Mr. Hoon) about job creation, did not the G7–now G8–countries discuss the introduction of an information super-highway? Did not they have before them the European Commission’s White Paper on growth, competitiveness and trade? If so, were not they surprised that it is full of the British solution to introducing an information super-highway, which is competition, deregulation and privatisation?

    The Prime Minister: That White Paper was referred to in the discussions, although the super-highway was not mentioned other than in the general sense of greater liberalisation of telecommunications.

    Ms Glenda Jackson (Hampstead and Highgate): Will the Prime Minister tell the House why the G7 nations cannot bring pressure to bear on the International Monetary Fund and the World bank on the issue of accountability? Will pressure be brought to bear on the IMF and the World bank to ensure that in future developing nations will be genuinely treated as equal partners and not as beggars?

    The Prime Minister: I do not think that the IMF views indebted countries in that fashion. It tries to assist them and to help them out of their difficulties. That is one of its purposes. Certainly those IMF officials whom I have met would not in any way characterise the countries in the way that the hon. Lady described them. There is no doubt that there is a need for assistance for those countries. I believe that the IMF provides it. However, as we examine the future of the IMF and other institutions, we need to consider whether that can be done better in the future than it has been done in the past.

    Mr. John Marshall (Hendon, South): Although the whole House welcomes the trade and aid policies being pursued by the European Union towards Gaza and Jericho, does my right hon. Friend agree that the responsibility for helping those parts of the world goes much wider than just Europe? Was any estimate made of the contribution that the oil-rich Arab states could make to the regeneration process?

    The Prime Minister: My hon. Friend touches upon an important point. There is no doubt that the Arab states–many, although not all, of which are oil-rich–should make a significant contribution to the future development of Gaza. That point is relevant– [Interruption.] I hear an Opposition Member whispering that some of them have already committed.

    Mr. Dennis Skinner (Bolsover): Some of the money has gone.

    The Prime Minister: The hon. Gentleman interrupts me. An Opposition Member whispered that some of the Arab states have already contributed. Others have indicated that they will do so.

    Dr. Norman A. Godman (Greenock and Port Glasgow): Was there any discussion of the urgent need to provide continuing financial assistance to those countries most heavily affected by the imposition of United Nations sanctions against Serbia and Montenegro? The Prime Minister will surely agree that Bulgaria, Romania, Hungary and Macedonia deserve continuing assistance.

    The Prime Minister: There was no specific discussion of that matter, for the simple reason that the international financial institutions take that into account in the assistance that they provide at present.

    Mr. Michael Bates (Langbaurgh): Is my right hon. Friend aware that news that the considerable needs of the poorest nations of the world featured so high on the agenda of a meeting of the richest seven nations will be deeply refreshing to many people throughout the country? Will he ensure that the review of international institutions, which is long overdue in the eyes of many, will specifically examine the costs of bureaucracy and duplication so that the maximum amount of money can go to those who need it most?

    The Prime Minister: My hon. Friend is entirely right about that. In providing further assistance to many of the poorest countries, there is a need not only for cash assistance–and I do not resile from the fact that much of that is necessary–but to do whatever can be done to ensure that the money is used for the purposes for which it was intended.

    Mr. Michael Connarty (Falkirk, East): Did I hear the Prime Minister make a fleeting reference to unemployment and employment creation? If I did, does the right hon. Gentleman accept Library statistics that show that, in Britain today, only 25 million people are in employment when the peak figure in 1990 was 26 million? We are 1 million jobs short. Will the Prime Minister give an assurance that, when the G7 nations discussed that matter, they did not settle on the part-time, low-wage, poverty-making employment that the right hon. Gentleman’s Government have created? What will they do to provide real jobs at decent wages for people in G7 countries?

    The Prime Minister: I have to say to the hon. Gentleman that he is completely wrong. Perhaps he would like to tell me how many countries have a higher proportion of their adult population in work than does this country. There is only one in the European Union, and the hon. Gentleman would go a long way outside to find another that is better. The drivel talked by his hon. Friends can safely be ignored.

    Mr. Mike O’Brien (Warwickshire, North): Will the Prime Minister confirm that, either at the summit or in his bilateral discussions with President Clinton, he raised concerns about the fall in the US dollar and the impact that that would have on constituents such as mine who work at Jaguar who need to export to the US market?

    The Prime Minister: No. I am not going to make any comments in the House on currency values.

  • PMQT – 30 June 1994

    Below is the text of Prime Minister’s Question Time from 30th June 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Enright : To ask the Prime Minister if he will list his official engagements for Thursday 30 June.

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

    Mr. Enright : Given the 16 per cent. increase in productivity since the last pay settlement achieved by the signalling staff, how does the Prime Minister justify spending £500 million and cramming money into the pockets of already wealthy bankers and PR men, when a mere 1 per cent. of that would give those signalling men a living family wage?

    The Prime Minister : The hon. Gentleman has overlooked the fact that the signalling men are demanding an 11 per cent. pay rise with no productivity or restructuring. That is self-evidently not a reasonable claim in present circumstances. I very much regret the fact that they rejected the Railtrack offer, and that therefore there has been continued suffering for rail travellers.

    What we should like to know clearly–yes or no–is whether the Opposition believe that these strikes should continue.

    Mr. Michael Brown : Does the Prime Minister recall the speech that he made at the Conservative party conference in 1992, when he asked who had ever heard of a cricketer, Len Hutton, turning out to play for the county of Humberside? Is he aware that on the table of the Secretary of State for the Environment is a recommendation to the Local Government Commission, supported by just about every Labour and Conservative Member representing Humberside, and every Labour and Conservative councillor in the area, welcoming the report? Will he urge the Secretary of State for the Environment to get rid of the county of Humberside and to implement the recommendations as soon as possible?

    The Prime Minister : I am sure that my right hon. Friend will have heard that plea. I think that there are many hon. Members on both sides of the House who would like the return of traditional areas and areas of local government that people will recognise and understand as having historical interest.

    Mrs. Beckett : How can the Prime Minister justify a reported pay increase of £800 a week for the chief executive of National Power, at a time when the Institute for Fiscal Studies has shown that the gap between the best paid and the lowest paid in Britain today is wider than it has been for 100 years?

    The Prime Minister : The hon. Lady yet again tends to concentrate on every occasion on the politics of envy and redistribution instead of the politics of growth and job creation. When she learns that there is more to prosperity than envy and redistribution, she may be in a position to lecture others.

    Mrs. Beckett : I am sure that the whole country will note that the Prime Minister failed to condemn either the pay increase or the widening pay gap. But surely he is aware that Government figures show that every ordinary British family, including the lowest paid of all, are paying more taxes now than they were when the Government came to power–with the sole exception of the kind of people who award themselves pay increases of £800 a week. How can that be right?

    The Prime Minister : Of course, average real incomes are substantially up for people at all levels of income, as the right hon. Lady should know. But since the right hon. Lady returns yet again to tax, perhaps she would care to comment on the remarks of the hon. Member for Kingswood (Mr. Berry) who said recently :

    “We”

    that is the Labour party

    “cannot put trust and tax on top of the agenda and then duck the economic issues.”

    That is what the right hon. Lady does.

    Mrs. Beckett : What are certainly up for every ordinary British family are the taxes that they pay under this Government. As a result of the Government’s economic failure, Britain today is a country of low wages, low skills, high crime and higher taxes. Whatever happened to the Prime Minister’s promise to build a nation at ease with itself?

    The Prime Minister : It is actually a nation of low inflation, increasing growth and falling crime. The right hon. Lady has been promising to set out her position on a number of issues and today she certainly has. She has published her own policy document and it enlightens a great deal. If any hon. Member would like to know more about it, I invite them

    Hon. Members : Answer.

    Madam Speaker : Order. It is right that an answer should be given, but to the right hon. Member for Derby, South (Mrs. Beckett) who has every right to question the Executive about its policy.

    The Prime Minister : The right hon. Lady has invited anybody who wishes to know more about her programme to phone her campaign hotline and ask for Kevin or Ian who will explain her policies.

    Mr. Rowe : Will my right hon. Friend give a clear and categorical assurance to the House that he will not allow himself to be discouraged from his pursuit of a classless society by the growing probability that both the leading opposition parties will be led by public schoolboys?

    The Prime Minister : The essence of the society that I wish to create lies in the fact that it does not matter whether they are or not.

     

    Q2. Mr. Keith Hill : To ask the Prime Minister if he will list his official engagements for Thursday 30 June.

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

    Mr. Hill : Does the Prime Minister remember those happy Labour days of 1969 when he came to live in my Streatham constituency at the charming Primrose court when the unemployment rate in Streatham stood at one in 50? Thanks to his Government’s policies it now stands at a shocking one in five. Is the Prime Minister be surprised to learn that there is no great demand in Streatham for a blue plaque to commemorate his stay at Primrose Court?

    The Prime Minister : I do not know how much the hon. Gentleman knows about Lambeth at that time in the late 1960s, but if he had checked a little more carefully he would have known that just a few months before the date that he quotes the Labour-controlled Lambeth council was swept from office, going from 57 to three in the local elections.

     

    Q3. Mr. Fabricant : To ask the Prime Minister if he will list his official engagements for Thursday 30 June.

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

    Mr. Fabricant : Is not it the case that being at the heart of Europe and fighting one’s corner for Europe are not mutually exclusive and, if the Opposition say that it is, is not that both false and weak? Is not it also the case that when it comes to exercising the veto or the threat of veto, other countries have used it far more often than we have and, when it comes to abiding by European directives, in the league of large countries, Britain comes top, France comes third and Germany comes bottom? Is not Germany’s threat of the beef embargo a good example of that?

    The Prime Minister : As my hon. Friend intimated, there is a long history of vetoes by other member states–some on the Commission presidency itself. Being at the heart of Europe means fighting for the best interests of this country and of Europe. It emphatically does not mean agreeing with everything that our partners propose. Frankly, that is not the way that Europe works. It is not how our partners behave, how they expect us to behave or how we will behave. Wherever appropriate, we will stand up for the interests of this country and of Europe, and for the nature of Europe that we believe everyone across the continent wants.

     

    Q4. Mr. Clapham : To ask the Prime Minister if he will list his official engagements for Thursday 30 June.

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

    Mr. Clapham : Is the Prime Minister aware that figures provided by the Department of Social Security clearly show that the number of miners who fail tests for bronchitis and emphysema is well over 90 per cent? Does he share my concern that there is a need to review the regulations, not in five years or two years but immediately? Will he tell the House that he is prepared to set in train an immediate review of the bronchitis and emphysema regulations?

    The Prime Minister : As the hon. Gentleman may know, the Government accepted and implemented in full the Industrial Injuries Advisory Council recommendation to add those diseases to the prescribed list. I am sure that was right. The recommendation was made and accepted.

    Sir Dudley Smith : Is my right hon. Friend aware that President Reagan never looked back after he fired striking air traffic controllers? In view of the wilful neglect by Labour Members to do anything to help the travelling public, will my right hon. Friend consider doing the same with the striking signalmen?

    The Prime Minister : We are currently hoping to see a settlement that would end those unnecessary strikes at the earliest date possible. At the moment, Railtrack and the Rail, Maritime and Transport union are in negotiation and I hope that they will reach agreement soon.

     

    Q5. Mr. Alton : To ask the Prime Minister if he will list his official engagements for Thursday 30 June.

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

    Mr. Alton : Does the Prime Minister share the sense of horror felt by right hon. and hon. Members in all parts of the House at the massacre of half a million Rwandans and the displacement of 2 million others? Is there not some personal initiative that he could take to ensure that the 5,000 troops promised by the United Nations one and a half months ago are now all deployed, refugees are evacuated and those responsible for the genocide are brought before international courts and tried for war crimes?

    The Prime Minister : Anyone who has seen the dreadful pictures from Rwanda will share the hon. Gentleman’s sense of horror and revulsion. I strongly support the proposal currently being considered by the Security Council, to establish a committee of experts to investigate allegations of war crimes in Rwanda and then take appropriate action. As I am sure the hon. Gentleman knows, the special rapporteur on Rwanda appointed by a special session of the European Commission of Human Rights is now in the country. We expect his report tomorrow and I hope that action can swiftly follow.

     

    Q6. Mr. Jacques Arnold : To ask the Prime Minister if he will list his official engagements for Thursday 30 June.

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

    Mr. Arnold : My right hon. Friend will be aware of our ambition to continue on the path of cutting the basic rate of tax. Has he contrasted that with the ambition of the hon. Member for Kingston upon Hull, East (Mr. Prescott)?

    The Prime Minister : Our policy is entirely clear. Our overriding aim is to sustain the recovery that is now clearly evident–but when it is prudent to do so, we will certainly seek to cut tax rates again. I heard what the hon. Member for Kingston upon Hull, East (Mr. Prescott) said about tax a day or so ago. I am delighted that he set out his position–something of a novelty, in respect of tax, for Opposition Members. I hope that all other contenders will honour their previous promises and set out what they would do about tax.

     

    Q7. Mr. Win Griffiths : To ask the Prime Minister if he will list his official engagements for Thursday 30 June.

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

    Mr. Griffiths : Does the Prime Minister recall telling his right hon. Friend the Member for Old Bexley and Sidcup (Sir E. Heath) last Monday that he regretted using the veto on Mr. Dehaene, and that it would have been avoided if the pre-conference preparations had been as thorough as they were in 1984? Was the Prime Minister suffering from selective amnesia or being economical with the truth in failing to tell the House that in 1984 his predecessor vetoed Claude Cheysson and supported Jacques Delors, who, unlike the Prime Minister, believes in giving workers legal protection from sweatshop employers?

    The Prime Minister : The hon. Gentleman–perhaps by accident–is not telling the whole story. In 1984, there was a great amount of private consultation, and a number of countries–not just this one–indicated privately, not openly in the Council meeting, that they were unable to accept a particular candidate. My point was that if that sort of negotiation had taken place it would not have been necessary to apply the veto publicly, as I did. I hope that the hon. Gentleman now understands that.

  • PMQT – 28 June 1994

    Below is the text of Prime Minister’s Question Time from 28th June 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Mrs. Gillan : To ask the Prime Minister if he will list his official engagements for Tuesday 28 June.

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

    Mrs. Gillan : Will my right hon. Friend forgive me for injecting a little ray of sunshine so early in today’s proceedings by drawing his attention to the economic forecast published this morning by the Treasury, which shows prospects of steady growth coupled with low inflation? Does he agree that that highlights the success of our economic policies and further shows that the policies of the Labour party, with their limitless public spending, would damage the economy, damage jobs and damage our businesses?

    The Prime Minister : My hon. Friend is right to be cheerful about the forecast this morning. Growth is higher and inflation is lower. We now have a clear chance of sustainable growth with low inflation for the period ahead.

    That is extremely good news for the British economy. It is a chance that lies ahead of us and we have no intention of letting it slip.

    Mrs. Beckett : Does the Prime Minister agree with what the Chief Secretary to the Treasury said in Barcelona yesterday–that in Spain family ties are stronger and there is a greater spirit of local community than in Britain?

    The Prime Minister : I do not have the same knowledge of Spain as my right hon. Friend has, but I can say that my right hon. Friend made an excellent speech in Spain yesterday–an excellent and serious speech and one of a series that have been made by my right hon. Friends, addressing problems of concern to everyone in this country.

    Mrs. Beckett : As the Prime Minister has in effect endorsed the Chief Secretary’s speech, I must presume that he agrees. After 15 years of Conservative Government, if family life in Britain is undermined, why does the Prime Minister think that that is the case?

    The Prime Minister : All my right hon. Friends are concerned about the role of the family and how to maintain it. For us, family values and family life are central not only to our national life but to the existence of each and every person in this country. What my right hon. Friend has made clear and is self-evidently the case– [Interruption.]

    Madam Speaker : Order. I will have order in this House.

    The Prime Minister : What my right hon. Friend has made clear–I think that this is the kind of matter that we ought to be able to discuss without the sort of interpretation that the right hon. Lady puts on it–is that there are many areas of family life which are not the concern of Government and in which the Government are not the best arbiter. We have a responsibility for providing some vital services such as education, health and others, but the reality is that the essence of family life lies within the family itself. My right hon. Friend was right to draw attention to that.

    Mrs. Beckett : It seems to me that the Prime Minister has yet again endorsed what the Chief Secretary said. I shall put to him for the second time what I put to him a moment ago. Why does he feel that family life and the spirit of community in Britain have been undermined in the 15 years his Government have been in power? I remind him of what he said in Los Angeles last year. He said : “We have been here for 14 years. There is no one else to blame for anything else that has gone wrong.”

    Is not that the most truthful thing that he has said in years?

    The Prime Minister : I think that the right hon. Lady has perhaps not read my right hon. Friend’s speech in full. If she had..

    Mrs. Beckett indicated assent.

    The Prime Minister : Well, I would be surprised if she had read it, but, if she says she has, she clearly did not understand it. If she had read it, she would no doubt have seen the rest of my right hon. Friend’s speech. He made an excellent case for free trade, deregulation and economic policies which encourage innovation and self-respect. He made the point clearly that only if we do that can we sustain the genuine services necessary to sustain the family and those in genuine need. I note the right hon. Lady’s strong support for the welfare state. Perhaps she will set out the areas that she would seek to improve, and how she would propose to finance that improvement.

     

    Q2. Mr. Gill : To ask the Prime Minister if he will list his official engagements for Tuesday 28 June.

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

    Mr. Gill : My right hon. Friend will appreciate the difficulty that there will be in justifying an increase in Britain’s contribution to the European Community budget at a time when our defence budget is being drastically pruned. Will my right hon. Friend acknowledge the existing difficulties in explaining why soldiers, sailors and airmen are being made redundant at the same time as people working in the black economy continue to live at the expense of the taxpayers, drawing benefits to which they are neither entitled nor have earned?

    The Prime Minister : I share my hon. Friend’s concern to stamp out social security fraud, and that is why my right hon. Friend the Secretary of State for Social Security has stepped up the fight against it. We are looking, for example, at the possibility of introducing personalised cards as one of the methods of ensuring that we minimise and, I hope, eradicate social security fraud against the taxpayer.

    As far as the first half of my hon. Friend’s question is concerned, he will no doubt be aware of the agreement that I reached in Edinburgh on the future financing of the Community, which set clear and rigorous limits, not for the traditional five years of an agreement but for seven years of an agreement, and at a lower rate of increase than in the past. It also safeguarded the British rebate which was at some risk from our European partners. That was money which we had to fight hard to keep. I might add that, had we not had a veto, we might not have been able to keep that money.

    Mr. Ashdown : Given the present economic situation, is the Prime Minister opposed to further steps to increase the independence of the Bank of England?

    The Prime Minister : I have made my view clear that I am not at this moment in favour of further steps to increase the independence of the Bank of England.

    Sir Cranley Onslow : If the signalmen’s strike is not settled soon, will my right hon. Friend consider making a ministerial broadcast on the subject–however much it might embarrass the Opposition to find someone willing to accept the right of reply?

    The Prime Minister : The hon. Member for Holborn and St. Pancras (Mr. Dobson) has finally broken cover on the subject of the strike, even though the right hon. Member for Derby, South (Mrs. Beckett) has been notably silent. The hon. Gentleman has said that he supports the strike, and so do 40 of his Back-Bench colleagues. It will be interesting to see whether any of the leadership contenders do the same. After all, 40 votes are 40 votes.

     

    Q3. Mr. Hoon : To ask the Prime Minister if he will list his official engagements for Tuesday 28 June.

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

    Mr. Hoon : Is the Prime Minister reminded of the career of Frederick Augustus of York, who lost his job as commander in chief following a disastrous European campaign? Is not the Prime Minister’s problem that he is neither up with those who make and shape European policy, and is too often down with those who would have Britain leave the European Union? Is not it the case that the Government’s policy, like the grand old Duke of York, staggers from one crisis to the next and fails to protect Britain’s longer-term interests?

    The Prime Minister : I think that, from a party that would abandon the veto, talk of protecting Britain’s long-term interests will sound pretty hollow to most people in this country. The Opposition’s European policy is to find out what the others want and then agree with it so that they can claim not to be in a minority. I have been able to discover not one area of originality in their European policy. We have set out and will continue to set out our own vision of how Europe should develop. [Interruption.] The hon. Member for Kingston upon Hull, East (Mr. Prescott) will be surprised at the echo, right across Europe, of the nature of the European Community which we wish to develop.

     

    Q4. Mr. Duncan : To ask the Prime Minister if he will list his official engagements for Tuesday 28 June.

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

    Mr. Duncan : Will my right hon. Friend join me in welcoming yesterday’s announcement that parental choice will be extended by allowing the expansion of popular schools and grammar schools? Is he further aware that, despite their blurred rhetoric, the Opposition are still committed to the abolition of grant-maintained schools, hate grammar schools, and would deny parents the choice to which they are entitled?

    The Prime Minister : As my hon. Friend knows, the Opposition dislike choice of almost any sort–they have a difficult choice to make in the next few weeks. Yesterday’s announcement is excellent news for parents, giving them more choice and letting good schools grow. I regret the fact that the Opposition have such a negative education policy–the abolition of grant- maintained schools ; the abolition of training and enterprise councils; the abolition of the assisted places scheme; the abolition of teacher training reform ; and the abolition of performance tables. They would abolish everything that would provide more information for parents and a better education for children. However much they may dislike it, they should remember how they cut education budgets when they were in Government. Indeed, the right hon. Member for Derby, South (Mrs. Beckett) came into Government because her predecessor declined to make cuts. She came into Government to cut.

    Dr. Godman : The Prime Minister knows of the derailment of a train in Greenock on Saturday night. The driver–a young man from Glasgow–and a young lad from Greenock were killed instantly. They were murdered by murderous individuals who placed concrete slabs on the line. Since then, two copycat incidents have taken place in Cumbernauld and Duddingston, fortunately with no loss of life. Will the Prime Minister and his Transport Ministers assure the House today that Railtrack will do everything in its power to eliminate such murderous behaviour? Will they assure us that the safety and school liaison units will not be reduced, as some people fear, but given an enhanced educational role to reduce, if not eliminate, such terrible acts against train crews and passengers?

    The Prime Minister : I am sure that the whole House will join me in expressing my condolences to the family of the driver, Mr. McKee, and to Mr. Nicol, the passenger, who were so tragically killed. As the hon. Gentleman said, it appears to be an act of mindless vandalism that has resulted in the death of two entirely innocent people. As the hon. Gentleman is aware, the Strathclyde police are conducting an inquiry into the incident and treating it as murder. In addition, Railtrack and British Rail are conducting a joint investigation. The Health and Safety Executive inspector has already visited the site and the railway inspectorate is working alongside in the investigation. We will do all that we can to eliminate the possibility of such incidents in future and bring to book those responsible for this one.

     

    Q5. Mr. Riddick : To ask the Prime Minister if he will list his official engagements for Tuesday 28 June.

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

    Mr. Riddick : Does my right hon. Friend agree that it is no coincidence that, as soon as the chattering classes start to talk up the possibility of a future Labour Government, trade union militants start to rear their ugly heads? Does not the National Union of Rail, Maritime and Transport Workers strike provide a timely reminder of what has always happened under Labour Governments and what would happen under a future Labour Government? Does my right hon. Friend agree that what the House really wants to know is where Bambi stands on the rail strike?

    Hon. Members : Where is he?

    The Prime Minister : I am prepared to take responsibility for the opinion of many people, but not for that of the hon. Member for Sedgefield (Mr. Blair). He must answer for himself, when and if he returns to the House. [Interruption.] I think that most people will have noticed that the contenders for the leadership of the Labour party, although addressing every conference that presents itself up and down the country, will not be addressing the National Union of Rail, Maritime and Transport Workers conference. One of them is sponsored by it. They seem happy to take its money, but unwilling to address it.

    Mr. Jack Thompson : The Prime Minister is very keen to express his views on choice, and especially on market testing. Will he consider market testing his Government by having an election?

    The Prime Minister : Certainly, in 1996 or 1997–and we shall win it.

  • PMQT – 16 June 1994

    Below is the text of Prime Minister’s Question Time from 16th June 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Clappison : To ask the Prime Minister if he will list his official engagements for Thursday 16 June.

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

    Mr. Clappison : Is my right hon. Friend aware that in the past 12 months this country lost the lowest ever number of days to strikes? Is it not sad that that record is being spoilt by a trade union which, in pursuit of an 11 per cent. pay claim, yesterday inflicted hardship and inconvenience on thousands of travellers and commuters, including many of my constituents in Hertfordshire? Is it not conspicuous that that is not being condemned in any quarter by the Labour party?

    The Prime Minister : Overall, our industrial relations record is extremely good, and the number of days lost in strikes is lower than it has been for more than 100 years. We now lose fewer days to strikes than Germany, France or the United States per head of population. As for yesterday’s strike, the disruption that was caused to millions of people was inexcusable. Most of the public sector has settled on increases around the rate of inflation. The dispute is over a bid for an 11 per cent. increase before negotiations have even begun about productivity. It is unacceptable, it cannot be right and it should be condemned by every Member of the House.

    Mrs. Beckett : Can the Prime Minister confirm that when yesterday his Chancellor ruled out tax cuts he was admitting what the Prime Minister refused to admit on Tuesday–that a second round of tax increases will go ahead next year and will cost a typical British family £800 a year more in tax?

    The Prime Minister : I suppose that there must be some occasion on which the right hon. Lady will address the current issue of the strike and not wriggle away from it. If she is so concerned about tax, perhaps she will now withdraw all the public expenditure promises that she and her colleagues have made, and which inevitably would lead to higher taxation in future. If she will not withdraw those public expenditure promises, will she please indicate how they will be paid for and by what amount tax will rise?

    Mrs. Beckett : That is twice in one week that the Prime Minister has refused to answer the question. Let us try again. Taxes will go up next year, won’t they? Just say yes.

    The Prime Minister : The right hon. Lady knows the contents of the Budget and knows also that she is wriggling and hiding behind promises that she cannot substantiate. Our tax position is clear and open and people know what it is. We have set out a position that is right for this country and which has brought this country back to better economic circumstances than it has known for many years. That is an honest and straightforward position, unlike the position of the right hon. Lady who makes promises of increased expenditure with no indication whatever as to whether she will borrow to meet them and put up interest rates, or tax to meet them, or break those promises.

    Mrs. Beckett : But does the Prime Minister agree with the Chancellor that those tax increases, and the threat of interest rate increases, are a direct result of the Government’s economic failure and their track record of boom and bust? Whom does he think the Chancellor was condemning–Lord Lawson as Mr. Boom, or the Prime Minister himself as Mr. Bust?

    The Prime Minister : That was very well rehearsed, but it will not win the right hon. Lady very many votes. As for interest rates, I wonder if the right hon. Lady can remember a time when interest rates under a Labour Government were as low as they have been under this Government for the past 15 months. I wonder if she can remember a time when inflation was as low as it is under this Government now. I wonder if she can remember a time when our growth rate was twice as high as that of our European competitors. The answer is that she cannot–and, under any Labour Government, that would never be so.

    Mr. Butler : Does my right hon. Friend recall that the Labour party has voted against every single tax reduction that has been introduced, over many years, by Conservative Governments, and has voted against every tax increase? Does he consider that to be consistency or stupidity?

    Madam Speaker : Order. I remind the hon. Gentleman that it is the Executive that is responsible to the House, and the Executive that must answer questions, not the Opposition. That is the basis on which our democracy is built.

    Mr. Butler : I apologise, Madam Speaker. It was because I was so surprised to be called.

    Would my right hon. Friend consider such conduct on the part of his party to be consistent or stupid, had it taken place?

    The Prime Minister : The Opposition’s position is certainly consistently stupid, and stupidly consistent.

     

    Q2. Mr. Mackinlay : To ask the Prime Minister if he will list his official engagements for Thursday 16 June.

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

    Mr. Mackinlay : Does the Prime Minister agree with the Chancellor of the Exchequer that the people are often much more sensible than politicians? If so, has he reflected that last week–not only in Essex, but in a continuous, uninterrupted line from Dover to Oban–his policies were rejected and Labour’s were endorsed? Does he not recognise that he is increasingly seen as the captain of the Titanic–carrying on regardless, blaming the iceberg and determined to rearrange the deckchairs while he puts people’s lives at risk with his own reckless policies?

    The Prime Minister : Well, that was quite an effort. There are certainly occasions on which the public are much more sensible than politicians. They were much more sensible than Opposition politicians in 1979, 1983, 1987 and 1992, and they will be more sensible than Opposition politicians again at a later date in 1996 or 1997.

    Mr. Butcher : Does my right hon. Friend agree that the administration of law in this country now protects the civil liberties of yobs, bullies, violent criminals and drug barons so effectively that the civil liberties of the law-abiding majority are endangered ? The Conservative party never wanted that, the people never wanted it and the Cabinet never wanted it. If the legal structure is being undermined, should we not find out who the termites are before introducing further criminal justice legislation?

    The Prime Minister : I think that it is necessary to look at the interests of the majority of the people in the country. I share my hon. Friend’s view : our present criminal justice legislation was formulated with that very much in mind, as were some of the ideas that I have outlined to the House on other occasions.

     

    Q3. Mr. Flynn : To ask the Prime Minister if he will list his official engagements for Thursday 16 June.

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

    Mr. Flynn : Will the Prime Minister confirm that, in support of his campaign for a more civilised Question Time, which I hope is still continuing, and in the hope of a rational reply, 24 hours ago I sent him the following supplementary question : because of his own personal responsibility and his Government’s responsibility for introducing and promoting personal pensions, will he now give, in clear and simple language, a guarantee that the millions of people who opted out of the state earnings-related pension scheme and occupational schemes and who have been subjected to bad advice will have all their losses made up and their full pension rights restored?

    The Prime Minister : The hon. Gentleman may not be quite aware of the present situation. The regulator has made it clear that he will use his powers to ensure that anyone who was mis-sold a pension will have a remedy. There is no need for investors in personal pensions to be too concerned ; the hon. Gentleman should have understood that. Within the next few weeks, the Securities and Investments Board is due to publish a full report setting out the terms of redress which should be applied to investors who have been disadvantaged by that advice. They would be wise to wait for that report and not listen to the hon. Gentleman’s scaremongering.

    Dame Elaine Kellett-Bowman : Does my right hon. Friend agree that before the national health service reforms there was no such thing as equality of health treatment in this country and it depended entirely on where one lived? If one lived in Lancaster, one received good treatment, but if one lived in parts of the rest of the country, one did not. Will my right hon. Friend confirm that, following the reforms, best practice is spreading throughout the land?

    The Prime Minister : I can confirm that that is the case. The health reforms are spreading best practice in every part of the United Kingdom and removing many of the anomalies that existed previously. That, and the increased resources available to the national health service, are intended to ensure that we have the best possible national health service for our nation that we can possibly afford.

     

    Q4. Ms Eagle : To ask the Prime Minister if he will list his official engagements for Thursday 16 June.

    The Prime Minister : I refer the hon. Lady to the answer I gave some moments ago.

    Ms Eagle : Is the Prime Minister aware that his Government are currently spending £121,800 a year of taxpayers’ money on the salary of the chairman of Railtrack, who works only a three-day week? Is that value for money?

    The Prime Minister : If he turns Railtrack into the efficient organisation that customers who use trains wish to see, yes.

     

    Q5. Mr. Duncan : To ask the Prime Minister if he will list his official engagements for Thursday 16 June.

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

    Mr. Duncan : Will the Prime Minister convey to the local government commission my constituents’ overwhelming gratitude for recommending the return of the ancient and valiant little county of Rutland? Will he hop across from Huntingdonshire and hang a horseshoe in Oakham castle to celebrate that sensible and popular decision?

    The Prime Minister : I know from my own experience how strong my hon. Friend’s campaign for the return of Rutland has been and I congratulate him on the outcome. He mentioned other counties. I am familiar with one near to Rutland, which I hope will also return. I believe that questionnaires are to be sent to every household, which means that local people will be able to express their views on the matter and on what they wish the outcome to be. That is the right way to proceed.

     

    Q6. Mr. Keith Hill : To ask the Prime Minister if he will list his official engagements for Thursday 16 June.

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

    Mr. Hill : If the Cabinet is so bad that it needs a drastic reshuffle, as he promised on Monday, should not the Prime Minister take his fair share of the blame and reshuffle himself as well?

    The Prime Minister : In the interests of helping the hon. Gentleman, I can tell him, first, that whereas on Tuesday he told the House that unemployment was up in his constituency, today I can tell the House after yesterday’s figures that it is down–and I hope that he is grateful. The words that he metaphorically put in inverted commas–“drastic reshuffle”–have not crossed my lips.

    Mr. Lamont : May I urge the Prime Minister at the forthcoming summit in Corfu to reject firmly the candidature of the Belgian Prime Minister for the presidency of the Commission? Even if Britain did not have an excellent candidate with a brilliant negotiating track record, is it not true that Mr. Dehaene is a federalist of the old-fashioned type and that no Belgian candidate would resist the ever-increasing demands of the Brussels bureaucracy?

    The Prime Minister : At the moment there are only two declared candidates for the post–Sir Leon Brittan, whom we back strongly, and Dr. Ruud Lubbers. Both are highly respected in the European Community and are well known to all the member states. I have made no secret of my belief that Leon Brittan is the right candidate to be President of the Commission and he will have our strong support at Corfu. At this stage, I am not prepared to declare a position on any other candidate or possible candidate.

  • PMQT – 14 June 1994

    Below is the text of Prime Minister’s Question Time from 14th June 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. McAllion : To ask the Prime Minister if he will list his official engagements for Tuesday 14 June.

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

    Mr. McAllion : The family of Andrew de Vries, the British citizen gunned down in Texas earlier this year, has been campaigning for a federal investigation into the misconduct of the homicide inquiry by the local authorities in Houston. So far, it has uncovered many inconsistencies and blatant lies in the flawed official version of events. Will the Prime Minister now overrule the Foreign Office which, until now, has steadfastly refused any Government support for the family’s campaign? Does he accept that if he, too, chooses to ignore the massive injustice inflicted on that British citizen travelling under the protection of a British passport, many people will conclude that those who travel under that passport in future will do so at their own risk, as they will receive no protection whatever from the British Government when they face the direst emergencies in a foreign land?

    The Prime Minister : That was a very tragic death in unusual circumstances and I should like to add my sympathy to Mr. de Vries’s parents and friends. It was an appalling incident and I know that the hon. Gentleman has given a great deal of help and comfort to the family. The trial was conducted according to Texan law and procedures and the grand jury decided not to proceed with an indictment. I believe that the best way forward at present is for Mr. de Vries’s parents to put their points to their US legal representatives and be guided by the advice that they receive from them. I will certainly ensure that the hon. Gentleman and, of course, Mr. and Mrs. de Vries, are kept fully informed of any information that may come to the Government. We shall offer any advice that we can, but I do not think that it is for us to campaign. Advising is a different matter.

    Mr. Peter Ainsworth : Will my right hon. Friend join me in condemning tomorrow’s strike by railway signalmen, which will bring misery and inconvenience to millions of people trying to get to work or go on their holidays? Does he agree that those running for the Labour party leadership should condemn that selfish action with equal vigour?

    The Prime Minister : I agree with my hon. Friend that the strike is unnecessary and very much regret that it is taking place. I hope that, even at this late stage, it will be possible for the two sides to negotiate on the package that is there to be discussed. If the strike is to go ahead, I assure my hon. Friend that action has been taken by the relevant Department to ensure that a substantial amount of parking space will be available in London to enable as many people as possible to continue with their normal work.

    Mrs. Beckett : Can the Prime Minister confirm that it is still his intention to increase VAT on gas and electricity from 8 per cent. to 17.5 per cent?

    The Prime Minister : It is very interesting that the right hon. Lady does not want to discuss the question of a strike. [Interruption.] I think that the whole country will have noticed that that is the case and will probably understand precisely why. If my right hon. and learned Friend the Chancellor of the Exchequer has any changes in taxation plans, he will announce them in the usual way at the usual time.

    Mrs. Beckett : Is not it the case that next year, with VAT up– [Interruption.]

    Madam Speaker : Order.

    Mrs. Beckett : Is not it the case that next year, with VAT up and tax allowances–including mortgage interest relief–cut, people will be paying more VAT, more national insurance and more income tax and, as a result, a typical British family who are paying £500 more tax this year will be paying £800 more tax next year?

    The Prime Minister : If the right hon. Lady is so concerned about tax, perhaps she would like to make clear, as she indicated that she would a day or so ago, what her own tax proposals are. Does she want to raise higher taxes– [Interruption.]

    Madam Speaker : Order. The House must come to order and listen not only to questions, but to answers.

    The Prime Minister : Does the right hon. Lady want to raise taxes for those people earning more than £60,000, like the hon. Member for Oldham, West (Mr. Meacher), or for those people earning more than £50,000, like the hon. Member for Neath (Mr. Hain), or for those people earning more than £40,000, like the hon. Member for Brent, East (Mr. Livingstone)? Those are matters that the right hon. Lady ought to make clear to the House, if she is interested in taxation. She cannot hide from the results of her policies and her promises.

    Mrs. Beckett : I can certainly tell the Prime Minister that we will vote against any such increase in VAT, but is not it still more evidence of the Government’s sheer dishonesty that they are speaking about tax cuts at a time when the only things in the pipeline are tax increases for every British family? Does not the Conservative party realise that it is that sheer deception and dishonesty which have led directly to the biggest defeat suffered by the Conservative party in any national election?

    The Prime Minister : The right hon. Lady knows very well that day after day she and her hon. Friends make promises, with no indication of how those promises will be paid for. The shadow Chancellor then denies that there are promises. The right hon. Lady never indicates what the impact of her own promises and her own policies are. As the Government, we have to make decisions and carry them through ; she makes promises and runs away from them.

    Mr. Brazier : Will my right hon. Friend give his personal attention to the threatened prosecution of a number of Falklands war veterans? Is not it wrong that a civilian court should hear a case, not to do with something that happened in a prisoner-of-war camp or a safe area, but arising from allegations about what happened in the heat of battle? We expect a great deal of our young soldiers and may have to ask it again of them one day. May I ask my right hon. Friend to give instructions to the Director of Public Prosecutions that that case should be speedily discontinued, in the public interest?

    Hon. Members : Hear, hear.

    The Prime Minister : I understand the strong feelings set out by my hon. Friend and the strong feelings of many people, but I do not think that it is an advisable principle for the Government to seek to instruct the DPP in that fashion. I do not think that that principle would be regarded as proper, whatever the circumstances.

    Mr. Ashdown rose

    Mr. Skinner : Yesterday’s man. [Interruption.]

    Madam Speaker : Order. I know that Members are pleased to see each other, but this is going over the top. I want to hear Mr. Ashdown.

    Mr. Ashdown : I am glad that the Prime Minister agrees that these 15 minutes of Prime Minister’s Question Time need to be reformed to make them more intelligible to us and make them more like what the British people say they would like to see, but will he now tell us what specific proposals he has for the House to consider?

    The Prime Minister : As I have indicated to the House before, I believe that there is a widespread feeling that these 15 minutes could be more productively used, but I am conscious that on this occasion the Prime Minister of the day– [Hon. Members :– “Answer the question.”] I will come directly to the point as to my personal view. Let me make another point first. I believe that it is right for the Prime Minister of the day to be here to respond to whatever questions may be put to him by Members. If the right hon. Gentleman asks for my personal view on the subject, I believe that it would be more appropriate if contemporary questions were tabled the night before, so that the Prime Minister of the day can deal with relevant matters.

    I am prepared to answer whatever questions, in whatever fashion, may be put to me. However, I believe that there is a view among people in the country that we should be discussing more relevant matters than is sometimes the case during some of the exchanges that take place during Prime Minister’s questions.

    Mr. Nicholls : Has my right hon. Friend had the opportunity to study the survey by Manpower, which shows that job prospects are now at their best for the past four years? Is not the reason for that in large measure that we have not allowed the European Community to dictate our labour market policies? Is not it quite shameful that Labour Members of both this Parliament and the European Parliament are committed to destroying the very policies that have brought about that success?

    The Prime Minister : Thankfully, unemployment has been falling for the past 15 months–by some 300,000–and I believe that that trend will continue, unlike in other countries in Europe. The significant difference between us and them is that we do not have the additional costs on employment that prevent so many people on the continent from finding jobs. Some 20 million people across Europe are unemployed ; only in this country has there been a significant drop in the unemployment level.

    Madam Speaker : I call Mr. Robert Ainsworth. He is not here. Therefore, I call Mr. James Hill.

    Mr. James Hill : This is an unusual event, but I am fortunate to be called. Does my right hon. Friend agree that during the extensive canvassing over the past two weeks, the issues raised were not education or the national health service, but the ways in which we could protect the public through our police and defence forces? Should not the Treasury team make that a priority and put more money into the police and defence forces as and when it becomes available?

    The Prime Minister : I am sure that my right hon. Friends at the Treasury will have heard my hon. Friend’s plea. There is no doubt about the concern about crime that is felt throughout the country. We are seeking to deal with that concern through legislation and other means and we shall continue to do so. The matter cannot readily be solved at the stroke of a legislative pen. However, it does require legislation and that is being provided, together with other areas of assistance to improve the fight against crime.

     

    Q4. Mr. Keith Hill : To ask the Prime Minister if he will list his official engagements for Tuesday 14 June.

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

    Mr. Hill : If the Prime Minister can recall life before Labour’s triumph last Sunday, does he remember telling television viewers last Wednesday that we were through the recession and that he was glad that the rich had become richer? Can he explain why, in my south London constituency, unemployment is higher than it was 12 months ago? What comfort can he offer my unemployed constituents who have become poorer?

    The Prime Minister : I do not think that even the hon. Gentleman’s constituents will be in any doubt about the fact that the recession is over and we are back in mature growth. They would also have noticed the falls in inflation, in interest rates and in unemployment throughout the country. I very much hope that that fall in unemployment will soon extend to Streatham, an area which I know extremely well. The hon. Gentleman, who also knows it well, will be aware that the policies of inner London councils in recent years have forced many employers out of inner London. That is one significant reason why, for many years, unemployment in areas such as Streatham has been higher than it otherwise would be. If the hon. Gentleman is proud of Lambeth council, I would be very surprised.

     

    Q5. Mr. Ian Bruce : To ask the Prime Minister if he will list his official engagements for Tuesday 14 June.

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

    Mr. Bruce : Is my right hon. Friend aware that despite large job losses in the Ministry of Defence, unemployment in my constituency fell 10 per cent. in the last quarter? Is not that a tribute to my constituents’ positive action on job creation and to their refusal to take strike action? Does my right hon. Friend agree that the enemy of full employment is the strike, and that pious words on “Panorama” about full employment come ill from people who refused to cross picket lines just a few days previously?

    The Prime Minister : My hon. Friend is entirely right. Actions speak louder than words and, thus far, we have seen that Opposition Members will not cross a picket line although they are prepared to talk about unemployment. [Interruption.] I am delighted to hear the hon. Gentleman, as ever, say that the Opposition are on the side of the strikers, whatever the circumstances may be. I hope that the whole country noted that. The reality is that strikes are outmoded and unnecessary and they penalise innocent bystanders. I regret that the Opposition were prepared to do that last week and are prepared to do so in respect of tomorrow’s strike as well.

  • Mr Major’s Press Conference on the Competitiveness White Paper – 24 May 1994

    Below is the text of Mr Major’s press conference on the competitiveness White Paper, held in London on Tuesday 24th May 1994.


    PRIME MINISTER:

    Perhaps I can just make a few brief opening remarks. You have all no doubt heard the statements by Michael [Heseltine] and David [Hunt] already this afternoon and I hope all of you have a copy of the press pack and the White Paper.

    Let me just make three overriding points right at the outset. All of us would like to see higher living standards and better public services, but if we are going to achieve that, over time, there are really only two ways to improve and sustain the level of quality of public services that we want, the first of those is business success yielding higher taxes, and the second of those would be higher tax rates. There is no doubt which is preferable. Secondly, there is no doubt that long term business success needs long term policies in order to obtain it, the long term policies we need are those we have in place and those we have set out in the White Paper today, we have brought them together in this way I believe for the first time. And thirdly, let me just make a point about the world in which our businesses have to compete, both large businesses and small.

    It is becoming a truism to say that the world is more competitive than ever before and it is becoming more so day after day. Technology and free trade have created a global environment, there is a global market place, there are new opportunities but we are only going to take those opportunities if we can keep up and beat the best of the competition. And many countries around the world who used to be fairly easy markets for us many years ago are now very firm competitors for us, there is no sentiment in the market place, we have to be better or our companies simply will not win in the sort of world market that exists at present.

    The White Paper shows what we can do to help our businesses to win and demonstrates our commitment to industry, manufacturing industry and services. As I think a number of you present will know, not least because you will have been with us on the trips, a number of my colleagues and I travel frequently batting for Britain with delegations of British exporters. Many of those visits have led to very substantial orders for the United Kingdom, bringing jobs and better living standards here. Those visits have brought home to me two lessons – the first is the accelerating pace of change and the quality of competition which businesses face; and the second is the need for active partnership between government and industry if we are to maximise the possibilities for businesses and companies in this country.

    It is of course the private sector companies, employees abroad, decision-makers often here at home, those who work on product development and marketing, who actually win the orders for us, it is on them that our living standards and our future depends. It was against that sort of background that I asked Michael Heseltine some months ago with colleagues right the way across government to have a look at the way in which the government could maximise its part in order to help our businesses win in that very competitive world market.

    A great deal inevitably must rest on work that has been done throughout the past 15 years and we are building on that with low inflation, deregulated, flexible and an open economy. But in addition to that the White Paper looks at a wide range of specific key areas and especially of course education and training. We have to give our youngsters the best start at school, that of course is the reason for our education reforms and it is the reason we are now introducing more vocational options for our 14 – 16 year olds.

    But of course a great many of those people, upon whom our future success depends, do not necessarily go on to college, so we also have to help them manage the transition from school to the early years of work and that is precisely what our apprenticeship programmes are about. Our intention is really very straightforward and very simple, whether children follow the academic path, the vocational path, or a mix of both, they will be given the opportunity to acquire the qualifications and the skills that they will need to get on in life and that we as a country need to assist our businesses in the competitive world in which they must compete. But we owe that I think both to our businesses and to those children and we owe it to our country to provide the best foundation for a competitive Britain in the next century.

    This is a long term look, there are no short term fixes in this White Paper, this is a comprehensive look at things that need to be done, some in the short term, some in the long term, in order to give us the best opportunity in the world’s business environment.

    I would just now like to ask Michael to say a word or two, and then David, and then we will take your questions. Can I say a word about questions? I have with me the Secretaries of State, all of whom in separate ways have been involved in the production of this White Paper, so I hope we will have questions of detail, we have the people here who will be only too happy to respond to those questions.

    MICHAEL HESELTINE:

    Prime Minister, when you entrusted some of us with the preparation for your consideration of this White Paper, you gave us some very clear steers. The first was to be absolutely certain that nothing was to be proposed that would upset the main macro-economic priorities of the government which we believe to be at the essence of remaining a competitive economy. The second was that if within the dialogue and within the public expenditure constraints we could find re-apportionment or realignment of priorities, then it was your particular concern that they should be directed towards improving the educational and training opportunities of our people. The next guideline that you gave us was that you wanted us to analyse Britain’s position in the long term context, as you said, to do so in a non-partisan way, to seek to unite the nation behind a whole range of initiatives in which every company and everybody would identify a purpose for them.

    We have done our best to fulfil that remit, it has required a superhuman endeavour by civil servants working right across government, it has involved the widest possible consultation outside government with organisations that have a role to play, and it is a particular indication of the significance that we give to the exercise that not only have we done that in the first place but that the committee that you entrusted with the initial task is to remain in existence and will as appropriate at given times update the work if the government believes that that will help. We are very pleased to have played a role in this.

    DAVID HUNT:

    Prime Minister, in setting the framework for a stronger partnership between government and industry, the role that John and I in particular have played is to put people right at the heart of the drive to ensure that the UK wins through in the 21st century, and programmes have got to be tailored to the needs of individuals, they must offer opportunities to individuals and they must ensure that individuals are motivated to take advantage of them. So our ambition is for our people to succeed. So we have a range of ambitious measures aimed at bringing out the best of the talent and skills of our people, you have heard the figures, you have heard the programmes.

    Right at the heart of the strategy, Prime Minister, something that I know you personally have always been strongly committed to, which is the new modern apprenticeship scheme offering real opportunities to youngsters to play a key role in adding to Britain’s brain power. And these new fast track apprenticeships are something that many organisations, many individuals, have been pressing for, we are now extending the opportunities beyond the 16 and 17 year olds to those aged 18 and 19, and key is a revolution in careers guidance now involving independent advice, probably to about 1.5 million one-to-one interviews and giving school children the opportunity to get the best possible advice at 13, at 15 and at 17, and also that small firms skill sharing scheme, a whole range of schemes. But, Prime Minister, the key to all is investing in people, that is a programme that we strongly support, that came from the CBI, we are carrying it through into every aspect of education and training.

    QUESTION:

    Why was it felt unnecessary to accept the main recommendations of the all party Trade and Industry Select Committee, such as a training levy on employers and a programme to combat short-termism in the City?

    MICHAEL HESELTINE:

    I think there were about 4 or 5 areas which we were not able to accept in the Select Committee report, by and large we accepted and agreed with the analysis and the proposals. But actually the Select Committee did not propose a training levy, if you look at the Select Committee report they admire the direction in which we are going and what they say is that we should come back to and consider a training levy if no better results are forthcoming in other ways, so they did not make that recommendation and it was a mistake for people to suggest in the House that they did. There were a number of other things that we were not able to agree, we were not able to agree with the suggestion that targets should be set right through every sector of the economy, I think that frankly is not realistic and I know of no government that has ever tried that ever succeeded, there are some who have tried but they have never succeeded.

    QUESTION:

    Prime Minister, why do you look so grim?

    PRIME MINISTER:

    I am glad you are so concerned about that, I am trying to peer through those television lights, if you really wish to know the truth, if anyone whom I have known for years stands up and I do not recognise them, the answer is that beyond those lights all you can see are black spots, so I am not grim, just peering to see who is there.

    QUESTION:

    [Indistinct] 4.55 in the paper on accelerated modern apprenticeships, you say if industry plays its part government will provide funding of 107 million pounds over three years, what precise part do you want industry to play for these modern apprenticeships for 19 and 18 year olds, and is this 107 million pounds over three years additional to any previous funding?

    DAVID HUNT:

    This is an additional commitment of 107 million pounds over 3 years and what this will do is to produce a fast track for those who have stayed at school, done A levels, GNVQs, etc, to move into work-based training. We calculate it will take them around about 18 months on average to get up to that key point of NVQ level 3, and what we are doing by introducing this fast track approach is giving many more people an opportunity, and we calculate that this will increase the numbers of those achieving NVQ level 3 from around about just over 10,000 at the moment to over 70,000 NVQ level 3s achieved every year, and the way we will do it is by working closely, as we are at the moment, through the industry training organisations, the training and enterprise councils, all the other key partners and bodies, working up models which then to form the basis of the new scheme.

    QUESTION:

    What precisely does industry have to do to get the government to provide the funding?

    DAVID HUNT:

    We have got 14, now just gone up to 17, pilot areas which we are starting this autumn. Each apprenticeship will have a different cost, apprenticeships in some of the more specialised engineering sectors will differ in cost from those in other areas and I am now awaiting reports coming from the working parties working up these pilots which will start later this year with a view then to introducing the full scheme in 1995, and we will be looking for a partnership whereby taxpayers’ money will be put alongside the private sector to secure through that training credit the opportunity for that youngster at 16 or 17 to have a 3 – 4 year apprenticeship and for the 18 and 19 year olds that 18 month fast track apprenticeship.

    QUESTION:

    There is a section in the document which allows pupils to spend what are presumed to be a voucher on a place at the school, college or training institution of their choice. The reforms were originally parent-power driven, this seems to be pupil-power driven, how far will it descend down through the school year, what age are we talking about and will it lead to an all in voucher system.

    PRIME MINISTER:

    It is at very early stages here, let me ask David to say something, John might wish to as well.

    DAVID HUNT:

    What we have said in paragraph 4.56 is that we see attractions in providing all 16, 17, 18, 19 year olds with learning credits with a real cash value, and that would give power to young people to buy their own education and training from schools, colleges, employers and other recognised providers. But we recognise that that would be a far reaching change in funding which is why John and I have said that we need careful preparation and we are going to consult further on the practical implications of learning credits and to discuss the issues widely and openly and also to introduce some pilot schemes on the basis of local partnerships.

    JOHN PATTEN:

    I would only add one thing to what David has said, and that is that yes we are totally devoted to parent power and parent choice for the parents of children of 5 – 16, but those of 16 plus are young adults, they are out and about in the world, they should be making their own choices. What we want to see is for those between 16 and 19 a good range of choices, whether it is city technology colleges, technology colleges, grant maintained schools, further education colleges, and we want them to have a wide range of examination qualifications, not forcing them into a rigid straitjacket, that is why we have got our gold standard, the A level, that is why David Hunt and myself have been developing the GNVQ, that is why we are very happy for the international baccalaureate to be taken, we have got to treat 16 and 17 year olds as young adults.

    QUESTION:

    The Prime Minister admitted that this White Paper brought together for the first time a range of initiatives, and right at the back of the document, on page 159, we discover that all it does is report on matters already announced and in progress, it is in effect a snapshot of the work in hand across government, basically the previous 158 pages are covering up for the fact that there is nothing new at all in this.

    PRIME MINISTER:

    That is, with great respect, rubbish. But let me ask the coordinator to spell out some of the details of why it is rubbish.

    MICHAEL HESELTINE:

    There are 60, I think, new proposals, 59, 60, 61 depends on the precise classification and I could mention a whole range of the ones that are announced here, the whole of the education and apprenticeship announcement that has been made are new, new money; the fact that we are spending 150 – 200 million pounds on a regional challenge is a new fact; the fact that we are producing a civil service White Paper is a new fact; you can go on. Quite frankly, the suggestion that you put that there is nothing new in it can only be charitably understood on the basis that you have not yet had time to read it.

    QUESTION:

    In the section on public purchasing you mention that you want a constructive partnership rather than an adversarial relationship in the government’s construction programme, could you outline how that will work?

    MICHAEL HESELTINE:

    On public purchasing, we believe that there is an opportunity to get a greater degree of professionalism into the purchasing machinery of government and a significant part of the initiative here is to improve training. But there is then another aspect to that and that is to set up a machinery across the country in order to make it easier for small companies to get access to large contracts and to so organise those contracts that they are more capable of being competed for by small companies. We are also going to work with the supply chain in order to encourage companies that are buying without thought to local sourcing the opportunities that they could create for British companies if they were to do so, there are a whole range of partnership arrangements that can be developed within such a framework and it is to bring professional management and an opportunity for particularly small and medium size companies in this huge public procurement process that is under way.

    PANEL SPEAKER:

    Also, we constituted our sponsorship side for the construction industry which fits in with this and of course throughout government we will be ensuring that the purchasing arrangements will be on the basis in which we also introduce the environmentally friendly kinds of concepts which enable our industries to be able to compete throughout the world. One of the things about competition is that you have to have the highest standards in this country in order to win markets elsewhere and that is very much driven by the standards which government demands as well, so this is inter-related with the kinds of contracts which we are now winning in places as far apart as the United States and Australia for the sort of environmentally friendly programmes which the water companies are now able to do because of competition, because of privatisation and because of the kind of government programme of purchasing which we are now demanding.

    QUESTION:

    You say that the basic thrust of this is to produce a more long-term vision so are there any measures in here to stop this haemorrhage of funds out of companies as dividend payments which obviously prevents companies from reinvesting in the very long-term things that you want such as R&D and education and training?

    PRIME MINISTER:

    Let William firstly just say something about R&D because I think often there are many comments made about the levels of research and development expenditure and investment which frankly are not right.

    WILLIAM WALDEGRAVE:

    The Government contribution on R&D is in the middle of the pack for the G7 and we remain one of the big five or six science countries of the world. Indeed, in terms of one of the indices, the citation index, we are probably the second biggest producer of innovative science ideas after the United States of America.

    The importance of getting longer-term decision-taking into companies is emphasised in the Paper but of course the fundamental thing that brings down time horizons is inflation and the establishment of real stability in the economy is already leading in this last period of the recession that is now over to a greater degree of protection for companies’ R&D budgets. That is a very hopeful sign for the future but the Paper makes absolutely no doubt about the fact that we want the best, that we want the average and the below-average to be brought up to the standard of the best investing companies in this country. Michael Heseltine talked earlier about for example the pharmaceutical industry. If we could have all our companies taking the same view about R&D in the long-term as the pharmaceutical industry does we would do very well.

    KENNETH CLARKE:

    We are having what we call a “Finance for Industry Study” in the Treasury and we are having a look at the views of companies themselves, the banks and other people about the flow of finance into industry in this country. Certainly, one of the things we will have a look at is the fact that, as you say, compared with some continental European countries certainly a greater proportion of profits are distributed in dividends here than are retained and we will look at that and decide the extent to which that gets the right balance between having properly functioning capital markets and on the other hand making sure that you can use some retained profits to build up your financial base. All these matters we will be considering in the run-up to the next budget.

    We have already shown that we are prepared to take measures in the budget to stimulate the kind of investment we require, particularly longer-term risk investment in small and medium-sized businesses but we are widening the scope of the studies that Stephen Dorrell and Tony Nelson have been carrying out. All of us in the Treasury are now settling down to this and I see the work we are doing looking at the flow of finance to industrial investment in this country all sitting alongside what is being done to help business improve its supply-side performance as well. We are very actively looking at that and the Government certainly is going to form a view on what we can do to improve the working of our capital markets in this country.

    PRIME MINISTER:

    The intention is of course that these various examinations should interlock. As Ken has just illustrated, there are in effect four areas that the Treasury are looking at at the moment: savings, the working of capital markets, the flow of funds to business and as a result of that, the implications for taxation and I think it is very desirable that that work should be done. It is but part of the whole patchwork but I think an important part.

    QUESTION:

    Prime Minister, you have said today’s initiative is probably unprecedented. Why has it taken almost fifteen years of Conservative Government before it could happen? Isn’t today’s White Paper somehow an implicit recognition that so far the Government was not helping British businesses enough?

    PRIME MINISTER:

    No, I don’t think so. A great deal has been done in the 1980s. Government is usually about the language of priorities and throughout the 1980s the first priorities were to deal with many of the macro-elements of the economy, not just the incipient inflation difficulty we had in this country but a range of other things as well, a range of supply-side measures and most obviously but not exclusively the reform of our then trade union laws.

    Those matters have been done. We are operating against a quite different background of better macro-structure, a better supply-side performance. What we now need to do is to move on to the things that still remain to be done and that is of course what has led to this particular White Paper. It comes on the back of the best inflation performance, the lowest interest rates that we have seen for a very long time. A number of people in this room were probably still in their nappies the last time we had interest rates at the present level and inflation at the present level.

    So we operate against that background and against that background there is every opportunity of maximising the competitive position that we have. It was an opportunity to be taken and that was the genesis of the White Paper.

    QUESTION:

    There are many small businesses who have wanted to expand up to now and recently. They say they can’t expand because they can’t find skilled workers and they can’t afford to pay apprentices. How, tomorrow, will they be able to say: “Ah! What you have announced today helps me, I can go ahead and expand now!”?

    PRIME MINISTER:

    I will get David to elaborate upon the apprenticeship point but can I just say something about small businesses before I ask him to do that. It is a quite staggering statistic that about 97% of the people employed in this country are employed by companies who have a very small number of employees, under 25 employees, that sort of size, so the implications for employment apart from anything else of the success of the small business sector are self-evident. What we believe is happening at the moment as the economy recovers is that many of those small companies are beginning to re-employ again. I think there is unmistakable evidence that that is the case. We hope our measures will give a kick-start to that.

    DAVID HUNT:

    Prime Minister, I have already spoken in the few moments I have had since leaving the House of Commons to several people who represent the small business sector who enthusiastically welcomed this White Paper. There are a whole set of provisions specifically for small firms. I will just mention one which is its identification with the assistance of small firms of up to 24,000 key workers who have got skills who just need that extra training to be able to pass on those skills to the next generation. That, allied with the new apprenticeship scheme, is directly targeted at small firms worth £63 million over three years.

    As Michael announced, we also of course have the innovation credits. That is another example. They are worth up to £1,000 a company for the innovation counsellors to enable the companies to pay for the best possible information or advice about innovation.

    Those are just two examples of a whole list of packages of opportunities for small firms because we recognise that much of the job-generation, the new jobs that are coming in the economy, about 25 million now, have come from small and medium-sized enterprises.

    QUESTION:

    Prime Minister, in considering the problems of making Britain more competitive, did you find yourself casting envious glances at Germany where short-termism is not a problem because financial institutions are more closely locked into the companies in whom they invest, where managers and workers get along perhaps more constructively because they sit on management and supervisory boards and where there is the so-called “Mittelstand” – the medium-sized businesses – which provide a solid core for industry beneath the big boys on the one hand and the smaller corner-shop industries on the other?

    PRIME MINISTER:

    I certainly didn’t cast envious glances at Germany. I think over the years there have been things we have been able to learn from Germany. There are things I very much admire about the way they conduct their affairs. I am not sure that their interlocking shareholdings are one of the things that I would necessarily wish to replicate here, I think they were a product of particular circumstances in Germany.

    In terms of some of their industrial training, the particular emphasis in factories that you will see given to the foremen for example, I think there are areas there where there is something for British industry to learn but generally, no, I am not envious. If you look at the German economy at the moment, you will see that it is facing some difficulties. There has been massive job-shedding, there are over 4 million unemployed at the moment. Like every other nation, they are emerging from extremely difficult economic circumstances.

    I will ask the Chancellor to add to this because I think I heard a Chancellorial grunt on my left which suggests he wants to say something!

    KENNETH CLARKE:

    I happen to have had the chance to meet quite a lot of German ministers, bankers and businessmen recently and I don’t think they will actually share your view. Obviously, currently as we know, their unemployment is higher than ours, theirs is not yet coming down, their rate of growth is slower than ours and quite importantly, they have actually lost their competitive edge vis-a-vis British businesses in quite a lot of fields. I meet British businessmen now exporting components in the automobile industry into Germany because this is a better manufacturing base currently than Germany.

    Like the Prime Minister, I admire a lot of things German. Theirs is a very powerful economy where they are putting right the things they know they have to put right to improve their competitiveness but at the moment we have the edge over them and we have got to address the things we are addressing to make sure we do our best to take advantage of the position we now have where at last we are able to compete with the Germans on level terms.

    The reason I grunted, smiled or whatever I did, was that recently I met a whole lot of people from a German private bank and one of the German bankers amused me by saying: “What we need here in Germany is a bit more of your British short-termism!”. Because half their banks are nationalised – they are about to privatise more of them – they have this system of interlocking shareholding and they do actually feel they lack some of the advantages we have of more fluid capital markets.

    That doesn’t go back on my previous answer. We know here that we do lack sufficient long-term capital for small businesses in particular. I agree with you that we don’t have that middle range of companies that the Germans are much stronger in. We have always thought the Germans had a lead over us in technical training and somebody a moment ago suggested we had been inactive. What David Hunt and John Patten are announcing builds on a process now of seven or eight years that started with a situation when we had absolutely no structure of technical qualifications in this country, we had no commitment to vocational training and to move into the areas they are now moving into, apprenticeships for 18-year-olds and so on, is catching up the Germans very rapidly and it is with the aim of seeking to overtake them in that great strength of theirs as well.

    We have got to compete with the Germans and there are a lot of good things in Germany but the idea that we sit here envious of the German situation is not true. For the first time in my lifetime we have the prospect of being a more competitive economy than Germany and we have got to take advantage of that finally and not least by aligning with German ministers who want to get deregulation going in Europe and in Germany of the kind that we have already got going in the DTI in the United Kingdom and which we are going to get going in Europe with German assistance.

    PRIME MINISTER:

    You raised one other point about the middle range of companies and I am going to ask Michael to say something about that but if I can just add one point to what Ken said a second or so ago, we have a very close alliance indeed with Germany in terms of seeking deregulation in the European Community. I will be very surprised indeed if deregulation across the Community isn’t one of the principal aims of the German Presidency of the Community in the second half of this year and the Germans and the British work in very close alliance on this and have done for some time I think to the benefit of both our countries and to the benefit of the rest of the European Union.

    MICHAEL HESELTINE:

    A very important question and nothing so reveals the long-term nature of changing relativities in the strength of the economy than this question of why we have fewer medium-sized companies than Germany.

    The reason basically for it is that for much of the post-War period, particularly under Labour governments, income tax was at 98p in the pound which meant that nobody earning money was capable of retaining any money with which to start a small business. You cannot start a medium-sized business, you start with small businesses, so there was a choke around the creative process of the capital system as far as individuals were concerned.

    We then had the existing businesses that had already started and many of them were medium-sized. What then happened is that we created a tax regime in which there was massive preferential treatment for the publicly-quoted company to take over the businesses that were middle-sized which were forced onto the market-place by death duties and capital transfer or wealth taxes of one sort and another and when the family businesses came to look at the consequence of the business on death or transfer, they discovered that if they sold their business for cash, which is all a small or medium-sized business could offer, then they would be taxed into oblivion and so they looked at the publicly-quoted companies, the giants who could give them shares, and there was no tax paid at that time and so not only did we put a choke on creation, we put a block on the transfer of inheritance and the sustenance therefore of the sector and that explains why under Socialist taxation policies we wiped out a whole raft of medium-sized companies.

    The exciting long-term thing of the 1990s is that there are today 600,000 more small businesses than there were in 1979. The latest published figures by Barclays Bank indicate there is now a net capital asset creation of small businesses after the recession and so what we have to do is keep that macro-economic climate developing in the very benign tax climate we have now got so that the small businesses created in the ’80s become the medium-sized businesses of the ’90s.

    JOHN PATTEN:

    On this issue of training and education in Germany often held up, rightly, to us over decades as a model, I think actually the Germans are beginning to look to us and the sort of innovative work being done by David Hunt and by people in the Department for Education to produce new higher-level vocational qualifications in a way which will leap over some of those that the Germans have.

    Just two other things: we do need, all of us in industry and in education and in the world of the employer, to link up in a national crusade to hit the national education training targets that we have set ourselves by 1997 otherwise we are not going to be as competitive as we wish by the end of this century. An awful lot has been achieved over the last fifteen years, standards are going up, standards are improving and best of all from the employers’ point of view, more young people than ever before are staying on at school post-16; back in 1979 it was about 40%, now it is round about 75% and I think it is our ambition as a government to see the 16-year-old school-leaver as rare as the dodo by the year 2000.

    QUESTION:

    Prime Minister, if this report is as successful as you say it will be, how many jobs do you think it will create long-term?

    PRIME MINISTER:

    I don’t think you can produce an estimate of that. We can see at the moment that the rate of unemployment is falling rather larger than we had imagined just a few months ago. I very much hope that will continue and it looks at the moment as though it is certainly going to continue for some time but I think it is very unwise to forecast the levels of unemployment and of employment. No previous Government has done it and I think it would be very unwise of us to try. What one can certainly say is that if the economy becomes more successful, it generates more growth, it generates the growth of small businesses, then it is going to create more employment but quantifying that I think would be an impossible task.

    QUESTION:

    The modern apprenticeship system as presently proposed is going to cost £1.25 billion over the next three years. Now you are proposing £107 million extra to almost double apprentice numbers. I accept the point that the apprenticeship will be shorter but when you talk to people from Techs and ITOs they say that the modern apprenticeship scheme will last two years, maybe two-and-a-half years and now you are talking about eighteen months. How do you expect £107 million to virtually double apprentice numbers and is this where you expect a greater contribution from industry?

    DAVID HUNT:

    May I just explain the background to the figures. What we are talking about now is a total budget over the next three years which is up to £2.5 billion – £2,500 million – which the Department of Employment is going to invest over a three-year period to help our young people get modern training leading to high-quality qualifications.

    The £107 million investment over three years is what my officials tell me after consultation is necessary to introduce a short fast-track apprenticeship for round about at any one point in time 57,000 individuals participating in the new modern apprenticeship.

    The actual quantification of the cost of each sector will follow the detailed negotiations that are now taking place but all of this is against that background of £2.5 billion.

    Finally, Prime Minister, can I say about employment something just revealed in the House of Commons which I don’t think many people are aware of and that is when you look at the percentage of our working population now in work, we are just about the highest with one other country in the Europe in the league table in Europe. We have 70% of the male and female population aged 15-64 in work and that compares to Germany 65%, France 60%, Italy 56%, Ireland 52%, Spain 49%.

    QUESTION:

    Regarding the sections in the White Paper both on transport and London, Could you tell us what is happening to the “Crossrail” project and whether it will be built?

    JOHN MACGREGOR:

    We remain firmly committed to the “Crossrail” project. The promoters are currently looking to see whether they can revive the Bill.

    JOHN GUMMER:

    It is very important for London and we are determined to ensure that this range of new opportunities are made available. The fact of the matter is that even though we are spending an enormous amount of money, much more than was ever spent when there was a GLC, it is still true that the standards which we are trying to produce and the opportunities go on increasing and that is why this is another step on a course which we started a long time ago.

    It is incremental but it will be all the more exciting if we can get “Crossrail” as well.

  • PMQT – 24 May 1994

    Below is the text of Prime Minister’s Question Time from 24th May 1994.


    PRIME MINISTER:

     

    Engagements

    Q1. Dr. Wright : To ask the Prime Minister if he will list his official engagements for Tuesday 24 May.

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

    Dr. Wright : What does the Prime Minister say to the woman in my constituency who phoned my office the other day to thank me for taking up her husband’s case in relation to the Child Support Agency, but who said that I could close the file–the file that I have here–because her husband had just killed himself? Has not the time come when it is no longer enough to say that we all support the principle of the agency–which we do–or that it is being kept under continuing review–which it no doubt is ? Has not it become a monstrous and inhuman shambles that has to be changed and changed now?

    The Prime Minister : The hon. Gentleman knows what I had to say about that recently. I have nothing to add to that today. On the personal circumstances that he mentioned, neither he nor I can know all the circumstances behind that tragedy. On reflection, he may think that it was unwise to raise it in that fashion.

    Sir Cranley Onslow : As the British electorate clearly cannot expect Opposition Members to spell out the full horrors of the sort of centralised and federal European Union for which they want people to vote on 9 June, will my right hon. Friend consider inviting Mr. Delors to come over here and do the job for them?

    The Prime Minister : The President of the Commission is welcome here in the United Kingdom at any time. I hope that when he comes, if he comes, he will spell out yet again that he believes that the fact that we are not part of the social chapter will make us a great magnet for external investment–I am sure that he is right about that.

    Mrs. Beckett : Does the Prime Minister recall what his party promised the British people in its last Euro-manifesto? It included the promise that the Conservatives would not put value added tax on gas and electricity, saying :

    “We stand by that pledge; we will honour it”.

    Has not it become clear that the Government are incapable of honouring any pledge?

    The Prime Minister : It is not remotely clear. Like every Government, we have to respond to the reality of events in the interests of the people of this country. The right hon. Lady should bear in mind some of the contradictions in what she and her colleagues have said and done. On one day they attack our tax proposals and on the next day they propose a string of new taxes. They then ask for fresh expenditure, but the shadow Chancellor says that there is no commitment. There is no consistency whatsoever in any of their policies.

    Mrs. Beckett : If that is the Prime Minister’s answer to why the Government broke the promises in their last Euro-manifesto, will he explain why, at the general election in 1992, he and his party promised not to extend or increase VAT, not to increase national insurance contributions and not to impose any other taxes and charges, and even promised tax cuts year on year? Why is it that, in manifesto after manifesto, the Government make promises that they then betray?

    The Prime Minister : The right hon. Lady is misquoting and misunderstanding. If she wants to talk about movements away from manifestos, she might look at the distinctions between the European socialist manifesto to which the Labour party is committed and the domestic Labour party manifesto for the European elections. She might then explain to the British people why, in this election, what it is saying domestically is not what it has agreed to internationally.

    Mrs. Beckett : Did not the Government prove at the last Euro- election and general election that they will say and do anything to get elected? The people now know that after the broken promises of the Euro- election and general election campaigns. Why should anyone trust the Government ever again?

    The Prime Minister : The right hon. Lady will also know that we made it clear that we would create the right circumstances for growth, and we have; that we would bring unemployment down, and we are ; that we would get interest rates down, and we have ; and that we would create the conditions for sustained growth without inflation, and we have.

    Only a few weeks ago, the Labour party was signing up to promises in Europe to which it dare not admit domestically in the current election. If the right hon. Lady will not admit to that, she will find that, throughout the campaign, quote after quote after quote of what the Labour party has signed up to not long ago will be brought up. The Labour party is now trying to duck, dodge and weave around those promises because it knows that the British people will not stand for its policies on Europe.

    Mr. Dykes : I thank my right hon. Friend for yesterday reminding the British public yet again that we gain enormously in real sovereignty and strength in Europe by working closely, harmoniously and positively with the other member countries.

    The Prime Minister : As I said last night in my speech, which I know that my hon. Friend will have read, our policy is to make a success of the European Community and to make sure that it regains the affection of people, not only in this country, but right across Europe. That is the policy of the Government, and I set out a range of ways in which we believe that that can and must be brought about. It is essential to the future well-being of the country that we are able to ensure not only that the European Union is accepted by the people but that it continues successfully for many years to come.

    Mr. Ashdown : The Prime Minister will be aware that, for as long as he continues to hold firmly to the view that there will be no question of negotiation with the men of murder in Northern Ireland for as long as they continue with violence and unless and until they renounce it permanently, he will continue to enjoy the full support of the vast majority of this House and, I believe, the majority of the country. However, is he aware of just how much the momentum for peace in Northern Ireland is now evaporating? Does he accept that it is urgent and important that the British and Irish Governments should now put forward joint proposals based on the joint declaration through the constitutional parties in Northern Ireland, if the high hopes for peace which we enjoyed at Christmas are not to be killed off by the new wave of terrorism being implemented by both sides?

    The Prime Minister : I think that the whole House will share the right hon. Gentleman’s wish to see an end to violence. Where I would take issue with him is in his assertion that there is an evaporation of the movement toward peace in Ireland, both north and south of the border. I do not believe that that is the case, and it is not the information which comes to me.

    After what has happened in recent weeks, but one question remains to be answered : when will the IRA give up violence? There never has been any justification–now, clearly and undoubtedly, there is not a single shred of justification in anyone’s mind–for its barbaric murders. It is losing support on all sides and becoming increasingly isolated. We should stick with the joint declaration and pursue the discussions that we are having with the constitutional parties and with the Government of the Republic of Ireland. We should also pursue the mechanism that we have been following for the past two years, which is bringing us nearer to peace than we have been for many years.

    Mr. Kynoch : Will my right hon. Friend take time to consider what would be the impact on traditional British interests were we to forgo completely the national veto in Europe, as urged by the sell-out Liberal Democrats?

    The Prime Minister : I think that it is

    Mr. Skinner : It is that lot behind me.

    The Prime Minister : Tempting though it is to respond to the hon. Member for Bolsover (Mr. Skinner), I shall respond first to my hon. Friend.

    It is inconceivable that any responsible party would wish completely to eliminate the national veto or dilute it in any way. On vital issues, it is important that that national veto remain. I shall give just one example. Had we had no national veto at Edinburgh, where we discussed future financing, under qualified majority voting we could have lost our rebate of £3 billion a year, which was so hard-fought for by my predecessor and retained in those discussions.

     

    Q3. Mr. Ainger : To ask the Prime Minister if he will list his official engagements for Tuesday 24 May.

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

    Mr. Ainger : The Prime Minister will be aware–it is now a matter of public record–that, on 20 April, the Minister for Social Security and Disabled

    Madam Speaker : Order. I am sure that the hon. Gentleman will put a direct question to the Prime Minister.

    Mr. Ainger : Is the Prime Minister aware that, on 20 April, the Minister for Social Security and Disabled People instructed his civil servants to produce amendments designed to ensure that the Civil Rights (Disabled Persons) Bill would be talked out? Is he also aware–I am sure that he is–that, only 16 days later, the same Minister denied to the House that he gave those instructions? Will the Prime Minister now do the honourable thing and, first, apologise to the 6.5 million disabled people for the deceitful and shabby way in which they have been treated and, secondly, sack the Minister for Social Security and Disabled People for misleading the House, the disabled and the country?

    The Prime Minister : The answer to the direct questions is certainly not.

    The Government’s record on assisting people who are disabled is very good. We have made it perfectly clear that, over the next few months, we shall consult to try to find a Bill that will achieve assistance for disabled people, but not a Bill with a cost of £17 billion. Until and unless the Opposition say that they are prepared to impose costs of £17 billion on private industry, their attitude over the Bill is utterly and totally bogus.

    Mr. Allason : Tonight, the House will be asked to review the provisions of the prevention of terrorism order. Does my right hon. Friend agree that it is high time that the abuse of the broadcasting ban, which is so widely circumvented by all the broadcasting media, should be reviewed so as to prevent known terrorists from appearing on television and having their voices dubbed by out-of-work actors from Northern Ireland?

    The Prime Minister : I understand the frustration that my hon. Friend feels about that matter. A number of complex matters are involved, but I will certainly discuss them with my right hon. Friend the Secretary of State for National Heritage.

     

    Q4. Mrs. Bridget Prentice : To ask the Prime Minister if he will list his official engagements for Tuesday 24 May.

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

    Mrs. Prentice : Why do so many people believe that foreign millionaires can queue jump their way into Britain? Can they do that because they give substantial donations to the Conservative party?

    The Prime Minister : I do not think that the hon. Lady quite understands the immigration rules, which are very complex. If she did, she would know that for a long time–even under the last Labour Government and I believe since 1970 or before–the immigration rules have allowed people of independent means to come to the United Kingdom. That has been the position for a very long time.

    Mr. Bill Walker : During his very busy day, will my right hon. Friend consider having a wee dram to celebrate the fact that the Scotch whisky industry is now in its 500th year? Is he aware that that industry provides massive employment in Scotland, provides export earnings of £2,000 million and brings pleasure to many?

    The Prime Minister : I am more amenable to the suggestion that I might have a wee dram than I am to many that I get these days, and I would be happy to take up that suggestion. I am happy to join my hon. Friend in his congratulations to the Scotch whisky industry, which has been a huge success. It is increasing its exports of a product which is enjoyed in every part of the world.